under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.) Grantee shall include the non-discrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under the Agreement.
27. Notices: All notices and other communications in connection with this Agreement shall be in writing, and shall be considered delivered as follows:
a. Electronic Mail (E-mail): When sent by e-mail to the last e-mail address of the recipient known to the party giving notice. Notice is effective upon transmission.
b. DocuSign (e-signature platform): When sent via DocuSign a notification will be sent to the last e-mail address of the recipient known to the party giving notice. Notice is effective upon transmission.
c. Grants Management System: When sent via / uploaded to the California State Library’s Grants Management System a notification will be sent to the last e-mail address of the recipient known to the party giving notice.
Notice is effective upon transmission.
d. Personally: When delivered personally to the recipient’s physical address as stated in this Agreement.
e. U.S. Mail: Five days after being deposited in the U.S. Mail, postage prepaid, and addressed to recipient’s address as stated in this Agreement.
28. Order of Precedence: The performance of this Agreement shall be conducted in accordance with the Terms and Conditions, Procedures and Requirements, Certificate of Compliance, Project Summary, Activities Timeline, and Budget, of this Agreement, or other combination of exhibits specified on the Grant Agreement Coversheet attached hereto (collectively referred to as “Terms”).
Grantee’s California State Library-approved Application (Grantee’s Application) is hereby incorporated herein by this reference. In the event of conflict or inconsistency between the articles, exhibits, attachments, specifications or provisions that constitute this Agreement, the following order of precedence shall apply:
a. Grant Agreement Coversheet and any Amendments thereto b. Terms and Conditions
c. Procedures and Requirements
d. Certificate of Compliance
e. Project Summary
f. Grantee’s Application (including Budget and Activities Timeline) g. All other attachments hereto, including any that are incorporated by reference.
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29. Payment:
a. The approved Budget, if applicable, is attached hereto and incorporated herein by this reference and states the maximum amount of allowable costs for each of the tasks identified in the Project Summary and Activity Timeline included in the project application. California State Library shall provide funding to the Grantee for only the work and tasks specified in the Grantee’s Application at only those costs specified in the Budget and incurred in the term of the Agreement.
b. The Grantee shall carry out the work described in the Work Plan or in the Grantee’s Application in accordance with the approved Budget and shall obtain the Grant Monitor’s written approval of any changes or modifications to the Work Plan, approved project as described in the Grantee’s Application, or the approved Budget prior to performing the changed work or incurring the changed cost. If the Grantee fails to obtain such prior written approval, the State Librarian or designee, at his or her sole discretion, may refuse to provide funds to pay for such work or costs. c. The Grantee shall request funds in accordance with the funding schedule included in this agreement.
d. Ten percent (10%) will be withheld from the Payment Request (if applicable) and paid at the end of the grant term, when all reports and conditions stipulated in this Agreement have been satisfactorily completed. Failure by the grantee to satisfactorily complete all reports and conditions stipulated in this Agreement may result in forfeiture of any such funds withheld.
e. Lodgings, Meals and Incidentals: Grantee’s eligible costs are limited to the amounts authorized in the California State Administrative Manual (see Exhibit C or contact the Grant Monitor for more information). f. Payment will be made only to the Grantee.
g. Reimbursable expenses shall not be incurred unless and until the grantee receives a Notice to Proceed as described in the Procedures and Requirements.
30. Personal Jurisdiction: The Grantee consents to personal jurisdiction in the State of California for all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties.
Native American Tribal grantees expressly waive tribal sovereign immunity as a defense to any and all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties.
31. Personnel Costs: Any personnel expenditures to be paid for with grant funds must be computed based on actual time spent on grant-related activities and on the actual salary or equivalent hourly wage the employee is paid for their DocuSign Envelope ID: 4CB5CD09-81A4-4810-AFD9-D454AA05B8FD 191 of 384
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regular job duties, including a proportionate share of any benefits to which the employee is entitled.
32. Pledge: This Agreement shall not be interpreted to create any pledge or any commitment by the State Library to make any other or further grants or contributions to Grantee, or any other person or entity in connection with the Project. It is mutually agreed that Grantee is responsible for furnishing funds beyond the grant award that may be necessary to complete outcomes or deliverables.
33. Privacy Protection: Both parties agree to protect the confidentiality of any non- public, personal information that may be contained in materials received or produced in connection with this Agreement, as required by Civil Code, section 1798, et. seq.
34. Prohibited Use: The expenditure under this program shall not be used to supplant Grantee efforts in other grant programs provided by the California State Library.
35. Public Records Act: Material maintained or used by the California State Library is considered “public record” under the Public Records Act (PRA) at Government Code, sections 6250, et. seq. This includes the Interim and Final reports, and any other written communications between the parties. Grantee agrees to ensure that all content contained in its written reports are appropriate for publication.
Said material, along with all other reports, documentation and data collected during the term of the Agreement, will be subject to disclosure unless it qualifies for exemption under the PRA in whole or in part. Grantee agrees to alert the State Library as to a basis for exemption, if any exists.
36. Publicity Obligations: Grantee will notify the State Library of any promotional materials or publications resulting from the grant no later than five (5) days in advance of distribution, whether they are print, film, electronic, or in any other format or medium. Copies of all promotional materials will be provided to the State Library. Grantee will acknowledge the State Library’s support as noted above. Grantee agrees that the State Library may include information about this grant and its outcomes in its own annual reports, with specific reference to Grantee, and may distribute such information to third parties.
37. Records: Communications, grant related documents, data, original receipts, and invoices must be maintained by Grantee and shall be made available to the State Library upon request. Grantee agrees to maintain adequate grant program records and adequate financial records consistent with generally accepted accounting practices, and to retain all records for at least five (5) years after the end-of-term. The State Library may monitor or conduct an onsite DocuSign Envelope ID: 4CB5CD09-81A4-4810-AFD9-D454AA05B8FD 192 of 384
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evaluation of Grantee’s operation to ensure compliance with this Agreement, with reasonable advance notice.
38. Reduction of Waste: In the performance of this Agreement, Grantee shall take all reasonable steps to ensure that materials purchased or utilized in the course of the project are not wasted. Steps should include, but not be limited to: the use of used, reusable, or recyclable products; discretion in the amount of materials used; alternatives to disposal of materials consumed; and the practice of other waste reduction measures where feasible and appropriate.
39. Reimbursement Limitations: Under no circumstances shall the Grantee seek reimbursement pursuant to this Agreement for a cost or activity that has been or will be paid for through another funding source. The Grantee shall not seek reimbursement for any costs used to meet cost sharing or matching requirements of any other California State Library funded program.
40. Reports and Claims: It is the responsibility of the grantee make the required reports and claims to the California State Library.
a. The grantee shall be responsible for submitting to the State Library Narrative Reports detailing progress and activities. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.
b. The grantee shall be responsible for submitting to the State Library Financial Reports reflecting grantee expenditure activity. The reports are due on the dates specified in the reporting schedule detailed in the Procedures and Requirements section.
c. To obtain payment hereunder the grantee shall submit authorized claims provided by the State Library for that purpose, on each of the following mentioned dates for payment, and the California State Library agrees to reimburse the Library as soon thereafter as State fiscal procedures will permit.
d. The final 10% of the grant award (if applicable) is payable only upon approval of all final reports and receipt of claim form. Failure to provide timely reports is a serious breach of an award recipient’s administrative duty under the award.
e. Payment will be provided to cover the expenditures incurred by the grantee for the project in the following manner:
o $ 800 upon execution of the agreement and submission of claim by the grantee organization.
o If applicable, second payment will be made after the submission and approval of the first reports and receipt of claim form in the amount of NA.
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o If applicable, final payment will be made upon approval of all final reports and receipt of claim form in the amount of NA.
41. Self-Dealing and Arm’s Length Transactions: All expenditures for which reimbursement pursuant to this Agreement is sought shall be the result of arm’s- length transactions and not the result of, or motivated by, self-dealing on the part of the Grantee or any employee or agent of the Grantee. For purposes of this provision, “arm’s-length transactions” are those in which both parties are on equal footing and fair market forces are at play, such as when multiple vendors are invited to compete for an entity’s business and the entity chooses the lowest of the resulting bids. “Self-dealing” is involved where an individual or entity is obligated to act as a trustee or fiduciary, as when handling public funds, and chooses to act in a manner that will benefit the individual or entity, directly or indirectly, to the detriment of, and in conflict with, the public purpose for which all grant monies are to be expended.
42. Severability: If any part of this Agreement is found to be unlawful or unenforceable, such provisions will be voided and severed from this Agreement, but the remainder of the provisions in the Agreement will remain in full force and effect.
43. Site Visits: The Grantee shall allow the California State Library to access and conduct site visits, with reasonable notice, at which grant funds are expended and related work being performed at any time during the performance of the work and for up to ninety (90) days after completion of the work, or until all issues related to the grant project have been resolved. A site visit may include, but not be limited to, monitoring the use of grant funds, provide technical assistance when needed, and to visit the State funded project.
44. Termination: The Agreement shall be subject to termination by the State Librarian or designee upon notice to the Grantee at least thirty (30) days prior to the effective date of termination. In the event this agreement is terminated, the Grantee shall deliver to the State Librarian copies of all reports, accounting, data, and materials prepared up to the date of termination. The State Librarian shall determine and pay the Grantee for necessary and appropriate expenditures and obligations up to the date of termination which have not been covered by prior installments previously paid to the Grantee. Upon such termination, the unused portion of the grant award must be returned to the California State Library within 45 days. If funding has been advanced to the Grantee, any unobligated balances, as determined by the State Librarian, shall be returned to the State Library within 45 days of the notice of termination.
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45. Timeline: Time is of the essence to this Agreement. It is mutually agreed between the parties that the grant application and the timeline included therein are part of the Agreement.
46. Unused Funds: At the end-of-term Grantee agrees to return any unexpended or unaccounted for funds to the State Library, or to submit a written request for an extension of the grant period. Funds will be considered unexpended or unaccounted if they were: (1) not used for their intended purpose, or (2) used inconsistent with the terms of this Agreement.
Funds will also be considered unaccounted for, and must be returned, if the proposal outcomes or deliverables are materially incomplete by the end-of-term or earlier termination, as determined by the State Library in its sole discretion.
47. Waiver of Rights: California State Library shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by California State Library. No delay or omission on the part of California State Library in exercising any rights shall operate as a waiver of such right or any other right. A waiver by California State Library of a provision of this Agreement shall not prejudice or constitute a waiver of California State Library’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by California State Library, nor any course of dealing between California State Library and Grantee, shall constitute a waiver of any of California State Library’s rights or of any of grantee’s obligations as to any future transactions. Whenever the consent of California State Library is required under this Agreement, the granting of such consent by California State Library in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of California State Library.
48. Work Products: Grantee shall provide California State Library with copies of all final products identified in the Work Plan and Application. Grantee shall also provide the State Library with copies of all public education and advertising material produced pursuant to this Agreement.
49. Worker’s Compensation: The State of California will not provide Workers’ Compensation insurance for Grantee or Grantee’s employees or contract personnel. If Grantee hires employees to perform services required by this Agreement, Grantee shall provide Workers’ Compensation insurance for them.
The Grantee is aware of Labor Code Section 3700, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the Labor Code, and the Grantee DocuSign Envelope ID: 4CB5CD09-81A4-4810-AFD9-D454AA05B8FD 195 of 384
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agrees to comply with such provisions before commencing the performance of the work of this Agreement.
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EXHIBIT B: CERTIFICATION of COMPLIANCE FORM
1. AUTHORIZED REPRESENTATIVE: I certify that the authorized representative named below is the legally designated representative of the Grantee for this Grant Agreement and project and is authorized to receive and expend funds in order to administer this grant program.
2. I certify that all information provided to the California State Library for review in association with this award is correct and complete to the best of my knowledge, and as the authorized representative of the Grantee, I commit to the conditions of this award, and I have the legal authority to do so.
3. I certify that any or all other participants or contractors in the grant program have agreed to the terms of the application/grant award and have entered into an agreement(s) concerning the final disposition of equipment, facilities, and materials purchased for this program from the funds awarded for the activities and services described in the attached, as approved and/or as amended in the application by the California State Librarian.
4. The authorized representative, on behalf of the Grantee, certifies that the Grantee will comply with all applicable requirements of State and Federal laws, regulations, and policies governing this program, to include the requirements listed below in this Certification of Compliance Form.
5. The authorized representative, on behalf of the Grantee, hereby certifies to the California State Library, for an award of funds in the amount $ 800. This award will provide library services as set forth in the Project Application as approved and/or as amended by the California State Librarian.
6. STATEMENT OF COMPLIANCE: Grantee has, unless exempted, complied with the non-discrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 11102).
7. DRUG-FREE WORKPLACE REQUIREMENTS: Grantee will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug- free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
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2) the person's or organization's policy of maintaining a drug-free workplace;
3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and,
2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.
Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Grantee may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Grantee has made false certification or violated the certification by failing to carry out the requirements as noted above. (Gov. Code § 8350 et. seq.)
8. CONFLICT OF INTEREST: Grantee needs to be aware of the following provisions regarding current or former state employees. If Grantee has any questions on the status of any person rendering services or involved with the Agreement, the California State Library must be contacted immediately for clarification.
Current State Employees (Pub. Contract Code § 10410):
a. No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.
b. No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.
Former State Employees (Pub. Contract Code § 10411):
a. For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. b. For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.
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If Grantee violates any provisions of above paragraphs, such action by Grantee shall render this Agreement void. (Pub. Contract Code § 10420).
Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Pub.
Contract Code § 10430 (e)).
9. LABOR CODE/WORKERS' COMPENSATION: Grantee needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code § 3700).
10. AMERICANS WITH DISABILITIES ACT: Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et. seq.)
11. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.
12. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all Grantees that are not another state agency or other governmental entity.
13. DRUG FREE WORKPLACE:
a. Continue to provide a drug-free workplace by complying with the requirements in 2 C.F.R. part 3186 (Requirements for Drug-Free Workplace (Financial Assistance)). In particular, the recipient must comply with drug- free workplace requirements in subpart B of 2 C.F.R. part 3186, which adopts the Government-wide implementation (2 C.F.R. part 182) of sections 5152-5158 of the Drug-Free Workplace Act of 1988 (P. L. 100-690, Title V, Subtitle D; 41 U.S.C. §§ 701-707).
b. This includes but is not limited to: making a good faith effort, on a continuing basis, to maintain a drug-free workplace; publishing a drug- free workplace statement; establishing a drug-free awareness program for the employees; taking actions concerning employees who are convicted of violating drug statutes in the workplace.
14. ACCESSIBILITY: The organization receiving this award, as listed in the certification section below, and all program staff, will ensure all project materials will meet California accessibility standards.
15. NON-DISCRIMINATION: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with all California non-discrimination laws.
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16. ACKNOWLEDGEMENT: The organization receiving this award, as listed in the certification section below, and all program staff, agree to comply with California State Library acknowledgement requirements.
Certification
ORGANIZATION
Name: Address (official and complete):
PROJECT COORDINATOR
Name:
Email: Phone:
GRANTTEE AUTHORIZED REPRESENTATIVE
Name: Title:
Email: Phone:
Signature: Date:
DocuSign Envelope ID: 4CB5CD09-81A4-4810-AFD9-D454AA05B8FD [email protected]
Joyce Ryan
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Authorized Representative Signature
ORGANIZATION
Name: Address (official and complete):
AUTHORIZED REPRESENTATIVE
Signature: Date:
Printed Name of Person Signing: Title:
STATE OF CALIFORNIA
Agency Name: California State Library Address: 900 N Street, Sacramento CA 95814 Signature: Date:
Printed Name of Person Signing: Title: California State Librarian DocuSign Envelope ID: 4CB5CD09-81A4-4810-AFD9-D454AA05B8FD Greg Lucas
5/3/2022
Joyce Ryan
201 of 384
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EXHIBIT B: STATE REIMBURSABLE TRAVEL EXPENSES
Rates are subject to change per State of California, Department of Human Resources Please Check State of California, Department of Human Resources Website for updated expenses:
http://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx
Mileage:
Rate subject to change
$0.56 per mile – approved business/travel expense
Meals:
Receipts are required
$7.00 – Breakfast
$11.00 – Lunch
$23.00 – Dinner
$5.00 - Incidentals
Meals Note: Lunch can only be claimed if travel is more than 24 hours. Incidental charge may be claimed once for every 24-hour period and should cover incidental expenses, such as but not limited to, tip, baggage handling, etc.
Hotel:
Receipts are required
and MUST have a zero
balance.
$ 90.00 plus tax for all counties/cities not listed below $ 95.00 plus tax for Napa, Riverside, and Sacramento
Counties
$ 110.00 plus tax for Marin County
$ 120.00 plus tax for Los Angeles, Orange, and Ventura
Counties, and Edwards AFB. Excluding the city of Santa
Monica
$ 125.00 plus tax for Monterey and San Diego Counties
$ 140.00 plus tax for Alameda, San Mateo and Santa
Clara Counties
$ 150.00 plus tax for the City of Santa Monica
$ 250.00 plus tax for San Francisco County
Out of State: Prior authorization must be obtained, as well as three print-out hotel quotes. Actual receipt must be included with authorization and additional quotes.
Hotel Note: If the above approved reimbursable hotel rates cannot be secured, please contact your grant monitor to obtain an excess lodging form. This form must be approved prior to actual travel.
AIRLINE TICKETS:
Itinerary and receipts are
required
Actual reasonable fees pertaining to airline travel will be reimbursed. Business, First Class, or Early Bird Check-in fee is not an approved reimbursable expense.
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Library – Courts Building 916-323-9759
P.O. Box 942837 [email protected]
Sacramento, CA 94237-0001 www.library.ca.gov
April 13, 2022
RE: Contractor and Grantee Compliance with Economic Sanctions Imposed in Response to Russia’s Actions in Ukraine
Dear Grantee,
You are receiving this notification because you currently have an active grant through the California State Library.
On March 4, 2022, Governor Gavin Newsom issued Executive Order N -6-22 (EO) regarding sanctions in response to Russian aggression in Ukraine. The EO is located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive- Order.pdf.
The EO directs all agencies and departments that are subject to the Governor’s authority to take certain i mmediate steps, including notifying all contractors and grantees of their obligations to comply with existing economic sanctions imposed by the U.S. government in response to Russia's actions in Ukraine, as well as any sanctions imposed under state law.
This correspondence serves as a notice under the EO that as a contractor or grantee, compliance with the economic sanctions imposed in response to Russia’s actions in Ukraine is required, including with respect to, but not limited to, the federal executiv e orders identified in the EO and the sanctions identified on the U.S. Department of the Treasury website ( https://home.treasury.gov/policy-issues/financial-sanctions/sanctions- programs-and-country-information/ukraine-russia-related-sanctions). Failure to comply may result in the termination of contracts or grants, as applicable.
Please note that for any agreements or grants valued at $5 million or more, a separate notification will be sent outlining additional requirements specified under the EO.
Lynne Oliva
Grants and Bureau Operations Manager
California State Library
900 N Street
Sacramento, CA 95814
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CALIFORNIA STATE LIBRARY
Lunch at the Library
FINANCIAL CLAIM
Invoice#: LATL21-38-001
PO#
ENY: 2021
ITEM NO: 6120-140-0001 Chapter 240, Statutes of 2021
PURCHASING AUTHORITY NUMBER: CSL-6120
REPORTING STRUCTURE: 61202000
COA: 5432000
PROGRAM #: 5312
Date:
Claim of: National City Public Library
Complete Address:
Street Address, City, State, Zip Code
For: National City Public Library
Project Title: Summer 2022 Lunch at the Library
Amount Claimed: $800 Grant Award Number: LATL21-38
For Period From: upon execution to end of grant period
Type of Payment PROGRESS FINAL IN FULL
Payable Upon Execution of Agreement
CERTIFICATION
I hereby certify under penalty of perjury: that I am the duly authorized representative of the claimant herein; that this claim is in all respects true, correct and in accordance with law and the terms of the agreement; and that payment has not previously been received for the amount claimed herein.
By
(Signature of the authorized representative)
(Print Name)
Title
State of California, State Library Fiscal Office
By Date
(State Library representative)
If you are not using DocuSign electronic signature to submit your claim, please complete the following:
EMAIL A SCANNED COPY:
Fiscal Services
[email protected]
MAIL ONE ORIGINAL SIGNATURE TO:
California State Library
Fiscal Office – State Grants
PO Box 942837
Sacramento, CA 94237-0001
DocuSign Envelope ID: 4CB5CD09-81A4-4810-AFD9-D454AA05B8FD Joyce Ryan
204 of 384
STATE OF CALIFORNIA – DEPARTMENT OF FINANCE
PAYEE DATA RECORD
(Required when receiving payment from the State of California in lieu of IRS W-9 or W-7) STD 204 (Rev. 03/2021)
Section 1 – Payee Information
NAME (This is required. Do not leave this line blank. Must match the payee’s federal tax return) BUSINESS NAME, DBA NAME or DISREGARDED SINGLE MEMBER LLC NAME (If different from above) MAILING ADDRESS (number, street, apt. or suite no.) (See instructions on Page 2)
CITY, STATE, ZIP CODE E-MAIL ADDRE SS
Section 2 – Entity Type
Check one (1) box only that matches the entity type of the Payee listed in Section 1 above. (See instructions on page 2) CORPORATION (see instructions on page 2)☐ SOLE PROPRIETOR / INDIVIDUAL ☐ MEDICAL (e.g., dentistry, chiropractic, etc.)☐ SINGLE MEMBER LLC Disregarded Entity owned by an individual ☐ PARTNERSHIP
☐ ESTATE OR TRUST
☐ LEGAL (e.g., attorney services)
☐ EXEMPT (e.g., nonprofit)
☐ ALL OTHERS
Section 3 – Tax Identification Number
Enter your Tax Identification Number (TIN) in the appropriate box. The TIN must match the name given in Section 1 of this form. Do not provide more than one (1) TIN.
The TIN is a 9-digit number. Note: Payment will not be processed without a TIN. •
•
•
•
•
•
For Individuals, enter SSN.
If you are a Resident Alien, and you do not have and are not eligible to get an SSN, enter your ITIN.
Grantor Trusts (such as a Revocable Living Trust while the grantors are alive) may not have a separate FEIN. Those trusts must enter the individual grantor’s SSN.
For Sole Proprietor or Single Member LLC (disregarded entity), in which the sole member is an individual, enter SSN (ITIN if applicable) or FEIN (FTB prefers SSN).
For Single Member LLC (disregarded entity), in which the s ole member is a business entity, enter the owner entity’s FEIN. Do not use the disregarded entity’s FEIN.
For all other entities including LLC that is taxed as a corporation or partnership, estates/trusts (with FEINs), enter the entity’s FEIN.
Social Security Number (SSN) or
Individual Tax Identification Number (ITIN)
___ ___ ___ -___ ___ - ___ ___ __
_ ___
OR
Federal Employer Identification Number
(FEIN)
___ ___ - ___ ___ __
_ ___ ___ ___ ___
Section 4 – Payee Residency Status (See instructions)
☐ CALIFORNIA RESIDENT – Qualified to do business in California or maintains a permanent place of business in California. ☐ CALIFORNIA NONRESIDENT – Payments to nonresidents for services may be subject to state income tax withholding. ☐No serv
ices performed in California
☐Copy of Fr
anchise Tax Board waiver of state withholding is attached.
Section 5 – Certification
I hereby certify under penalty of perjury that the information provided on this document is true and correct.
Should my residency status change, I will promptly notify the state agency below.
NAME OF AUTHORIZED PAYEE REPRESENTATIVE TITL E E-M AIL ADDRESS SI
GNATURE DATE TEL
EPHONE (include area code)
Section 6 – Paying State Agency
Please return completed form to:
STATE AGENCY/DEPARTMENT OFFICE U NIT/SECTION
M
AILING ADDRESS F
AX T
ELEPHONE (include area code)
CITY S TATE Z IP CODE E -MAIL ADDRESS
Print Form
Reset Form
DocuSign Envelope ID: 4CB5CD09-81A4-4810-AFD9-D454AA05B8FD 205 of 384
STATE OF CALIFORNIA – DEPARTMENT OF FINANCE
PAYEE DATA RECORD
(Required when receiving payment from the State of California in lieu of IRS W-9 or W-7) STD 204 (Rev. 03/2021)
GENERAL INSTRUCTIONS
Type or print the information on the Payee Data Record, STD 204 form. Sign, date, and return to the state agency/department office address shown in Section 6.
Prompt return of this fully completed form will prevent delays when processing payments.
Information provided in this form will be used by California state agencies/departments to prepare Information Returns (Form1099).
NOTE: Completion of this form is optional for Government entities, i.e. federal, state, local, and special districts.
A completed Payee Data Record, STD 204 form, is required for all payees (non-governmental entities or individuals) entering into a transaction that may lead to a payment from the state. Each state agency requires a completed, signed, and dated STD 204 on file; therefore, it is possible for you to receive this form from multiple state agencies with which you do business.
Payees who do not wish to complete the STD 204 may elect not to do business with the state. If the payee does not complete the STD 204 and the required payee data is not otherwise provided, payment may be reduced for federal and state backup withholding. Amounts reported on Information Returns (Form 1099) are in accordance with the Internal Revenue Code (IRC) and the California Revenue and Taxation Code (R&TC).
Section 1 – Payee Information
Name – Enter the name that appears on the payee's federal tax return. The name provided shall be the tax liable party and is subjec t to IRS TIN matching (when applicable).
• Sole Proprietor/Individual/Revocable Trusts – enter the name shown on your federal tax return. • Si
ngle Member Limited Liability Companies (LLCs) that is disregarded as an entity separate from its owner for federal tax purposes - enter the name of the individual or business entity that is tax liable for the business in section 1. Enter the DBA, LLC name, trade, or fictitious name under Business Name. • Note: for t
he State of California tax purposes, a Single Member LLC is not disregarded from its owner, even if they may be disregarded at the Federal level. • Partnerships, Estates/Trusts, or Corporations – enter the entity name as shown on the entity’s federal tax return. The name provided in Section 1 must match to the TIN provided in section 3. Enter any DBA, trade, or fictitious business names under Business Name.
Business Name – Enter the business name, DBA name, trade or fictitious name, or disregarded LLC name.
Mailing Address – The mailing address is the address where the payee will receive information returns. Use form STD 205, Payee Data Record Supplement to provide a remittance address if different from the mailing address for information returns, or make subsequent changes to the remittance address.
Section 2 – Entity Type
If the Payee in Section 1 is a(n)… THEN Select the Box for… Individual ● Sole Proprietorship ● Grantor (Revocable Living) Trust disregarded for federal tax purposes Sole Proprietor/Individual Limited Liability Company (LLC) owned by an individual and is disregarded for federal tax purposes Single Member LLC-owned by an individual Partnerships ● Limited Liability Partnerships (LLP) ● and, LLC treated as a Partnership Partnerships Estate ● Trust (other than disregarded Grantor Trust) Estate or Trust Corporation that is medical in nature (e.g., medical and healthcare services, physician care, nursery care, dentistry, etc. ● LLC that is to be taxed like a Corporation and is medical in nature Corporation-Medical
Corporation that is legal in nature (e.g. , services of attorneys, arbitrators, notary publics involving legal or law related matters, etc.) ● LLC that is to be taxed like a Corporation and is legal in nature Corporation-Legal
Corporation that qualifies for an Exempt status, including 501(c) 3 and domestic non-profit corporations. Corporation-Exempt Corporation that does not meet the qualifications of any of the other corporation types listed above ● LLC that is to be taxed as a Corporation and does not meet any of the other corporation types listed above Corporation-All Other
Section 3 – Tax Identification Number
The State of California requires that all parties entering into business transactions that may lead to payment(s) from the st ate provide their Taxpayer Identification Number (TIN). The TIN is required by R&TC sections 18646 and 18661 to facilitate tax com pliance enforcement activities and preparation of Form 1099 and other information returns as required by the IRC section 6109(a) and R&TC section 18662 and its regulations.
Section 4 – Payee Residency Status
Are you a California resident or nonresident?
• A corporation will be defined as a "resident" if it has a permanent place of business in California or is qualified through the Secretary of State to do business in California.
• A partnership is considered a resident partnership if it has a permanent place of business in California. •
A
n estate is a resident if the decedent was a California resident at time of death. •
A
trust is a resident if at least one trustee is a California resident. o
F
or individuals and sole proprietors, the term "resident" includes every individual who is in California for other than a temporary or transitory purpose and any individual domiciled in California who is absent for a temporary or transitory purpose. Generally, an individual who comes to California for a purpose that will extend over a long or indefinite period will be considered a resident. However, an individual who comes to perform a particular contract of short duration will be considered a nonresident.
F
or information on Nonresident Withholding, contact the Franchise Tax Board at the numbers listed below:
W
ithholding Services and Compliance Section: 1-888-792-4900 E-mail address: [email protected] F
or hearing impaired with TDD, call: 1-800-822-6268 Website:
www.ftb.ca.gov
Section 5 – Certification
Provide the name, title, email address, signature, and telephone number of individual completing this form and date completed. In the event that a SSN or ITIN is provided, the individual identified as the tax liable party must certify the form. Note: the signee may differ from the tax liable party in this situation if the signe e can provide a power of attorney documented for the individual.
Section 6 – Paying State Agency
This section must be completed by the state agency/department requesting the STD 204.
Privacy Statement
Section 7(b) of the Privacy Act of 1974 (Public Law 93-579) requires that any federal, state, or local governmental agency, which requests an individual to disclose their social security account number, shall inform that individual whether that disclosure is mandatory or voluntary, by which statutory or other authority such number is solicited, and what uses will be made of it. It is mandatory to furnish the information requested. Federal law requires that payment for which the requested information is not provided is subject to federal backup withholding and state law imposes noncompliance penalties of up to $20,000. You have the right to access records containing your personal information, such as your SSN. To exercise that right, please contact the business services unit or the accounts payable unit of the state agency(ies) with which you transact that business.
All questions should be referred to the requesting state agency listed on the bottom front of this form.
DocuSign Envelope ID: 4CB5CD09-81A4-4810-AFD9-D454AA05B8FD 206 of 384
RESOLUTION NO. 2022 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA, ACCEPTING THE SUMMER 2022 LUNCH AT THE LIBRARY GRANT FROM THE CALIFORNIA STATE LIBRARY FOR $800 TO FUND THE NATIONAL CITY PUBLIC LIBRARY’S SUMMER PROGRAM FOR THE FISCAL YEAR 2023 AND
AUTHORIZING THE ESTABLISHMENT OF A LIBRARY GRANTS FUND
APPROPRIATION OF $800 AND CORRESPONDING REVENUE BUDGET
WHEREAS, on April 26, 2022, the California State Library (“State Library”) awarded $800 in grant funding to the City of National City Public Library (“City Public Library”) for the Summer 2022 Lunch at the Library Grant Program (“Program”); and
WHEREAS, the State Library’s Program covers the costs of instructional materials and supplies for library programs and ou treach, allows libraries to provide lunches to young patrons and “pop-up” library programs at free lunch sites within the community; and WHEREAS, during the summer months of 2022, the Public Library will utilize the $800 in grant funds to provide “pop-up” programs on STEAM subjects and lunches for youth in the City of National City (“City”) through the Feeding San Diego program for local youth at Casa de Salud; and
WHEREAS, City staff recommends a uthorizing the acceptance of the Program from the State Library for $800 to fund City Public Library programs at Casa de Salud and the establishment of Library Grants Fund appropriations of $ 800 and corresponding revenue budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Authorizes the acceptance of the Summer 2022 Lunch at the Library grant funds from the State Library for $800 to fund Public Library programs at Casa de Salud and authorizes the establishment of a Library Grants Fund appropriations of $800 and corresponding revenue budget.
Section 2: The City Clerk shall certif y the passage and adoption of this Resolution and enter it into the book of original Resolutions.
///
207 of 384
Resolution No. 2022 –
Page Two
PASSED and ADOPTED this 7th day of June, 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Charles E. Bell Jr., City Attorney
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The following page(s) contain the backup material for Agenda Item: Investment transactions for the month ended April 30, 2022. (Finance)
Please scroll down to view the backup material.
209 of 384
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
ITEM TITLE:
DEPARTMENT:
PHONE:
EXPLANATION:
APPROVED BY:
AGENDA ITEM NO.: MEETING DATE:
ENVIRONMENTAL REVIEW:
FINANCIAL STATEMENT: APPROVED: FINANCE
ORDINANCE: INTRODUCTION
ACCOUNT NO.
STAFF RECOMMENDATION:
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
FINAL ADOPTION
APPROVED: MIS
NA
PREPARED BY:
Investment Transaction Ledger
Accept and file the Investment Transaction Ledger for the month ended April 30, 2022.
This is not a project and, therefore, not subject to environmental review.
NA
In accordance with California Government Code Section 53646 and Section XIIA of the City of National City’s investment policy, a monthly report shall be submitted to the legislative body accounting for transactions made during the reporting period.
The attached listing reflects investment transactions of the City of National City’s investment portfolio for the month ending April 30, 2022.
619-336-4346
Finance Ron Gutlay
Investment transactions for the month ended April 30, 2022.
June 7, 2022
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Transaction Ledger
As of April 30, 2022
City of National City Consolidated
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 04/04/2022 60934N807 2.92 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 2.92 0.00 2.92 0.00
Purchase 04/13/2022 023135CF1 205,000.00 Amazon.com Inc Callable Note Cont 03/13/2027
3.3% Due 4/13/2027
99.794 3.35% 204,577.70 0.00 204,577.70 0.00
Purchase 04/13/2022 60934N807 176,709.82 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 176,709.82 0.00 176,709.82 0.00
Purchase 04/15/2022 60934N807 1,218.75 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 1,218.75 0.00 1,218.75 0.00
Purchase 04/15/2022 60934N807 280.33 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 280.33 0.00 280.33 0.00
Purchase 04/15/2022 60934N807 62.83 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 62.83 0.00 62.83 0.00
Purchase 04/15/2022 60934N807 51.67 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 51.67 0.00 51.67 0.00
Purchase 04/15/2022 60934N807 58.50 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 58.50 0.00 58.50 0.00
Purchase 04/15/2022 60934N807 34.50 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 34.50 0.00 34.50 0.00
Purchase 04/15/2022 60934N807 305.50 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 305.50 0.00 305.50 0.00
Purchase 04/15/2022 60934N807 5,721.25 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 5,721.25 0.00 5,721.25 0.00
Purchase 04/15/2022 60934N807 5,889.77 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 5,889.77 0.00 5,889.77 0.00
Purchase 04/15/2022 60934N807 6,009.50 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 6,009.50 0.00 6,009.50 0.00
Purchase 04/15/2022 60934N807 9,494.70 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 9,494.70 0.00 9,494.70 0.00
Purchase 04/15/2022 60934N807 20,097.55 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 20,097.55 0.00 20,097.55 0.00
Purchase 04/15/2022 60934N807 16,394.36 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 16,394.36 0.00 16,394.36 0.00
Execution Time: 5/19/2022 12:44:22 PMChandler Asset Management Page 10 211 of 384
Transaction Ledger
As of April 30, 2022
City of National City Consolidated
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 04/15/2022 60934N807 5,077.85 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 5,077.85 0.00 5,077.85 0.00
Purchase 04/15/2022 60934N807 11,091.07 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 11,091.07 0.00 11,091.07 0.00
Purchase 04/15/2022 90LAIF$00 16,241.26 Local Agency Investment Fund State Pool
1.000 0.42% 16,241.26 0.00 16,241.26 0.00
Purchase 04/16/2022 60934N807 2,457.75 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 2,457.75 0.00 2,457.75 0.00
Purchase 04/18/2022 60934N807 9,224.94 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 9,224.94 0.00 9,224.94 0.00
Purchase 04/21/2022 60934N807 18.00 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 18.00 0.00 18.00 0.00
Purchase 04/21/2022 60934N807 88.00 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 88.00 0.00 88.00 0.00
Purchase 04/21/2022 60934N807 4,505.24 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 4,505.24 0.00 4,505.24 0.00
Purchase 04/25/2022 60934N807 2,125.00 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 2,125.00 0.00 2,125.00 0.00
Purchase 04/25/2022 60934N807 27.50 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 27.50 0.00 27.50 0.00
Purchase 04/25/2022 60934N807 110.00 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 110.00 0.00 110.00 0.00
Purchase 04/30/2022 60934N807 6,437.50 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 6,437.50 0.00 6,437.50 0.00
Subtotal 504,736.06 504,313.76 0.00 504,313.76 0.00
Security
Contribution
04/30/2022 90SDCP$00 33,000.00 County of San Diego Pooled Investment Pool
1.000 33,000.00 0.00 33,000.00 0.00
Subtotal 33,000.00 33,000.00 0.00 33,000.00 0.00
Execution Time: 5/19/2022 12:44:22 PMChandler Asset Management Page 11 212 of 384
Transaction Ledger
As of April 30, 2022
City of National City Consolidated
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Short Sale 04/13/2022 60934N807 -204,577.70 Federated Investors Govt Oblig Fund Inst.
1.000 -204,577.70 0.00 -204,577.70 0.00
Subtotal -204,577.70 -204,577.70 0.00 -204,577.70 0.00
TOTAL ACQUISITIONS 333,158.36 332,736.06 0.00 332,736.06 0.00
DISPOSITIONS
Closing
Purchase
04/13/2022 60934N807 -204,577.70 Federated Investors Govt Oblig Fund Inst.
1.000 -204,577.70 0.00 -204,577.70 0.00
Subtotal -204,577.70 -204,577.70 0.00 -204,577.70 0.00
Sale 04/13/2022 313379Q69 175,000.00 FHLB Note
2.125% Due 6/10/2022
100.251 0.53% 175,439.25 1,270.57 176,709.82 -1,634.50
Sale 04/13/2022 60934N807 204,577.70 Federated Investors Govt Oblig Fund Inst.
1.000 0.01% 204,577.70 0.00 204,577.70 0.00
Subtotal 379,577.70 380,016.95 1,270.57 381,287.52 -1,634.50 Paydown 04/15/2022 43815BAC4 0.00 Honda Auto Receivables Trust 2022-1 A3
1.88% Due 5/15/2026
100.000 0.00 305.50 305.50 0.00
Paydown 04/15/2022 43815NAC8 5,668.40 Honda Auto Receivables Trust 2019-3 A3
1.78% Due 8/15/2023
100.000 5,668.40 52.85 5,721.25 0.05
Paydown 04/15/2022 477870AC3 5,835.12 John Deere Owner Trust 2019-B A3
2.21% Due 12/15/2023
100.000 5,835.12 54.65 5,889.77 1.24
Paydown 04/15/2022 47787JAC2 0.00 John Deere Owner Trust 2022-A A3
2.32% Due 9/16/2026
100.000 0.00 280.33 280.33 0.00
Paydown 04/15/2022 47787NAC3 5,983.05 John Deere Owner Trust 2020-B A3
0.51% Due 11/15/2024
100.000 5,983.05 26.45 6,009.50 0.91
Execution Time: 5/19/2022 12:44:22 PMChandler Asset Management Page 12 213 of 384
Transaction Ledger
As of April 30, 2022
City of National City Consolidated
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
DISPOSITIONS
Paydown 04/15/2022 47788UAC6 0.00 John Deere Owner Trust 2021-A A3
0.36% Due 9/15/2025
100.000 0.00 34.50 34.50 0.00
Paydown 04/15/2022 47789KAC7 9,389.30 John Deere Owner Trust 2020-A A3
1.1% Due 8/15/2024
100.000 9,389.30 105.40 9,494.70 0.57
Paydown 04/15/2022 47789QAC4 0.00 John Deere Owner Trust 2021-B A3
0.52% Due 3/16/2026
100.000 0.00 58.50 58.50 0.00
Paydown 04/15/2022 58769KAD6 0.00 Mercedes-Benz Auto Lease Trust 2021- B A3
0.4% Due 11/15/2024
100.000 0.00 51.67 51.67 0.00
Paydown 04/15/2022 65479JAD5 19,813.80 Nissan Auto Receivables Owner 2019-C A3
1.93% Due 7/15/2024
100.000 19,813.80 283.75 20,097.55 1.05
Paydown 04/15/2022 89232HAC9 16,174.01 Toyota Auto Receivable Own 2020-A A3
1.66% Due 5/15/2024
100.000 16,174.01 220.35 16,394.36 -372.76
Paydown 04/15/2022 89236XAC0 5,048.68 Toyota Auto Receivables 2020-D A3
0.35% Due 1/15/2025
100.000 5,048.68 29.17 5,077.85 0.94
Paydown 04/15/2022 89237VAB5 11,042.21 Toyota Auto Receivables Trust 2020-C A3
0.44% Due 10/15/2024
100.000 11,042.21 48.86 11,091.07 0.85
Paydown 04/15/2022 89240BAC2 0.00 Toyota Auto Receivables Owners 2021- A A3
0.26% Due 5/15/2025
100.000 0.00 62.83 62.83 0.00
Paydown 04/18/2022 43813KAC6 9,147.86 Honda Auto Receivables Trust 2020-3 A3
0.37% Due 10/18/2024
100.000 9,147.86 77.08 9,224.94 1.34
Paydown 04/21/2022 43813GAC5 0.00 Honda Auto Receivables Trust 2021-1 A3
0.27% Due 4/21/2025
100.000 0.00 18.00 18.00 0.00
Paydown 04/21/2022 43813RAC1 4,440.99 Honda Auto Receivables 2020-1 A3
1.61% Due 4/22/2024
100.000 4,440.99 64.25 4,505.24 0.87
Paydown 04/21/2022 43815GAC3 0.00 Honda Auto Receivables Trust 2021-4 A3
0.88% Due 1/21/2026
100.000 0.00 88.00 88.00 0.00
Execution Time: 5/19/2022 12:44:22 PMChandler Asset Management Page 13 214 of 384
Transaction Ledger
As of April 30, 2022
City of National City Consolidated
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
DISPOSITIONS
Paydown 04/25/2022 05601XAC3 0.00 BMW Vehicle Lease Trust 2022-1 A3
1.1% Due 3/25/2025
100.000 0.00 110.00 110.00 0.00
Paydown 04/25/2022 09690AAC7 0.00 BMW Vehicle Lease Trust 2021-2 A3
0.33% Due 12/26/2024
100.000 0.00 27.50 27.50 0.00
Subtotal 92,543.42 92,543.42 1,999.64 94,543.06 -364.94 Security
Withdrawal
04/11/2022 60934N807 2,593.17 Federated Investors Govt Oblig Fund Inst.
1.000 2,593.17 0.00 2,593.17 0.00
Subtotal 2,593.17 2,593.17 0.00 2,593.17 0.00
TOTAL DISPOSITIONS 270,136.59 270,575.84 3,270.21 273,846.05 -1,999.44
OTHER TRANSACTIONS
Interest 04/15/2022 91282CBV2 650,000.00 US Treasury Note
0.375% Due 4/15/2024
0.000 1,218.75 0.00 1,218.75 0.00
Interest 04/16/2022 3137EAEY1 630,000.00 FHLMC Note
0.125% Due 10/16/2023
0.000 393.75 0.00 393.75 0.00
Interest 04/16/2022 45950KCR9 300,000.00 International Finance Corp Note
1.375% Due 10/16/2024
0.000 2,064.00 0.00 2,064.00 0.00
Interest 04/25/2022 06406RAX5 500,000.00 Bank of NY Mellon Corp Callable Note Cont 9/25/2024
0.85% Due 10/25/2024
0.000 2,125.00 0.00 2,125.00 0.00
Interest 04/30/2022 91282CAT8 650,000.00 US Treasury Note
0.25% Due 10/31/2025
0.000 812.50 0.00 812.50 0.00
Interest 04/30/2022 91282CDG3 1,000,000.00 US Treasury Note
1.125% Due 10/31/2026
0.000 5,625.00 0.00 5,625.00 0.00
Subtotal 3,730,000.00 12,239.00 0.00 12,239.00 0.00
Dividend 04/04/2022 60934N807 37,426.84 Federated Investors Govt Oblig Fund Inst.
0.000 2.92 0.00 2.92 0.00
Execution Time: 5/19/2022 12:44:22 PMChandler Asset Management Page 14 215 of 384
Transaction Ledger
As of April 30, 2022
City of National City Consolidated
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
OTHER TRANSACTIONS
Dividend 04/15/2022 90LAIF$00 1,718,259,592.32 Local Agency Investment Fund State Pool
0.000 16,241.26 0.00 16,241.26 0.00
Subtotal 1,718,297,019.16 16,244.18 0.00 16,244.18 0.00 TOTAL OTHER TRANSACTIONS 1,722,027,019.16 28,483.18 0.00 28,483.18 0.00 Execution Time: 5/19/2022 12:44:22 PMChandler Asset Management Page 15 216 of 384
The following page(s) contain the backup material for Agenda Item: Warrant Register #42 for the period of 4/15/22 through 4/21/22 in the amount of $1,740,797.06. (Finance) Please scroll down to view the backup material.
217 of 384
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
ITEM TITLE:
DEPARTMENT:
PHONE:
EXPLANATION: APPROVED BY:
AGENDA ITEM NO.: MEETING DATE:
ENVIRONMENTAL REVIEW:
FINANCIAL STATEMENT: APPROVED: FINANCE
ORDINANCE: INTRODUCTION
ACCOUNT NO.
STAFF RECOMMENDATION:
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
FINAL ADOPTION
APPROVED: MIS
PREPARED BY:
Warrant Register # 42
Ratify Warrants Totaling $1,740,797.06.
This is not a project and, therefore, not subject to environmental review.
Warrant total $1,740,797.06.
Per Government Section Code 37208, below are the payments issued for period 4/15/22 - 4/21/22.
Consistent with Department of Finance’s practice, listed below are all payments above $50,000.
Vendor Check/Wire Amount Explanation
Health Net Inc 357590 86,933.34 Group# R1192A – April 202 2 Kaiser Foundation HP 357591 228,662.46 Group# 104220 – May 20 22 Mile of Cars Assoc 357593 109,031.30 FY22 Mile of Cars/Lighting Maint Dist 619-336-4572 FinanceKarla Apalategui, Senior Accountant Assistant Warrant Register #42 for the period of 4/15/22 through 4/21/22 in the amount of $1,740,797.06. (Finance)
June 7, 2022
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PAYEE DESCRIPTION CHK NO DATE AMOUNT
ALDEMCO FOOD / NUTRITION CENTER 357567 4/21/22 2,266.08 ALIGNMENT EXPRESS OF CA INC SHOP SUPPLIES / PW 357568 4/21/22 1,11 5.62 ALL THE KINGS FLAGS CITYWIDE FLAGS & ACCESSORIES 357569 4/21/22 1, 006.05 AMAZON SENIOR SATURDAY JEWERLRY CRAFT MATERIALS 357570 4/21/22 80. 21 BROADWAY AUTO GLASS OFF-SITE WINDOW TINT AND REPAIRS 357571 4/21/ 22 730.26 C A P F APRIL 2022 - FIRE LTD 357572 4/21/22 1,150.50
CALIFORNIA LAW ENFORCEMENT APRIL 2022 - PD LTD 357573 4/21/22 2,13 1.50 CLEAN HARBORS ENVIRONMENTAL HAZMAT WASTE FOR MARCH 2022 357574 4/ 21/22 1,078.26 CONCENTRA MEDICAL CENTERS PRE-EMPLOYMENT PHYSICALS 357575 4/21/22 823.00 CRUZ TRAINING ADV LDG HONOR GUARD 357576 4/21/22 552.96 DAY WIRELESS SYSTEMS COMPANY MNTNCE CONTRACT/ FIRE 357577 4/21/22 328.00 DELTA DENTAL APRIL 2022 GRP #05-0908600000 357578 4/21/22 14,997.8 3 DELTA DENTAL APRIL 2022 - GRP #05-0908601002 357579 4/21/22 45.22 DELTA DENTAL INSURANCE CO APRIL 2022 GROUP #05-7029600000 357580 4/21/22 2,344.96 DELTA DENTAL INSURANCE CO APRIL 2022 - GROUP #05-7029600002 35758 1 4/21/22 108.77 DFM ASSOCIATES 2022 CALIFORINIA ELECTIONS CODE BOOK 357582 4/21/2 2 65.25 DIVISION 8 INCORPORATED CITY WIDE ONSITE GLASS AND WINDOW 357583 4/21/22 890.00 ESGIL LLC PLAN REVIEW SERVICES 357584 4/21/22 33,398.43 FIRE ETC TRUE NORTH L-3 RIT BAG/FIRE 357585 4/21/22 348.00 FRIEDMAN IMAGING SCANNING/BUILDING 357586 4/21/22 1,697.84 GALINDO ROJAS SUPPLIES / HR 357587 4/21/22 70.65
GONZALES TRAINING ADV SUB HONOR GUARD 357588 4/21/22 552.96 GONZALES TRAINING SLI #4 ADV SUB 357589 4/21/22 396.68 HEALTH NET INC GROUP #R1192A - APRIL 2022 357590 4/21/22 86,933.34 KAISER FOUNDATION HEALTH PLAN GROUP #104220 - MAY 2022 357591 4/2 1/22 228,662.46 LIEBERT CASSIDY WHITMORE LCW WEBINAR - EMPLOYMENT LAW SEMINAR 35 7592 4/21/22 550.00 MILE OF CARS ASSOCIATION FY22 MILE OF CARS/LIGHTNING MAINT DIST 3 57593 4/21/22 109,031.30 MOSSY NISSAN MOP 80703 AUTO SUPPLIES - PW 357594 4/21/22 248.59 NAPA AUTO PARTS MOP 45735 GENERAL SUPPLIES - PW 357595 4/21/22 19. 02 OFFICE SOLUTIONS BUSINESS MOP 83778 OFFICE SUPPLIES PW 357596 4/ 21/22 593.94 PARTS AUTHORITY METRO LLC MOP 75943 AUTO SUPPLIES- PW 357597 4/2 1/22 160.32 PENSKE FORD R&M CITY VEHICLES FY 2022 357598 4/21/22 1,656.40 PRO BUILD COMPANY MOP 45707 GENERAL SUPPLIES PW 357599 4/21/22 1,4 36.06 PROFESSIONAL SEARCH GROUP LLC RECRUITMENT SERVICES 357600 4/21/22 8,547.50 PROPPS REIMBURSEMENT LENA / NSD 357601 4/21/22 108.37
PRUDENTIAL OVERALL SUPPLY MOP 45742 LAUNDRY SERVICES PW 357602 4/ 21/22 741.61 RELIANCE STANDARD APRIL 2022 - GROUP #VAI826233, VCI801146 357604 4/21/22 4,300.70 SAN DIEGO COUNTY SD COUNTY TREASURER-TAX COLLECTOR FEE 357605 4/2 1/22 7.02 SBCS CORPORATION CARES ACT CDBG-CV AGREEMENT 357606 4/21/22 12,18 4.00 SDG&E GAS AND ELECTRIC FOR FACILITIES FOR FY22 357607 4/21/22 4,07 8.01 SEAPORT MEAT COMPANY FOOD / NUTRITION CENTER 357608 4/21/22 435.00 SHARP REES STEALY MED GROUP PRE-EMPLOYMENT PHYSICALS & DMV EXAM 3 57609 4/21/22 805.00 SITEONE LANDSCAPE SUPPLY LLC MOP 69277 LANDSCAPE SUPPLIES - PW 35 7610 4/21/22 80.74 SMART & FINAL MOP 45756 POLICE PROMOTIONAL TESTING 357611 4/21/22 106.83 SMART & FINAL MOP SENIOR SATURDAY CONSUMABLES 357612 4/21/22 79.21 SOSA TRAINING ADV SUB HONOR GUARD 357613 4/21/22 552.96 SOUTH COAST EMERGENCY CAP, RESERVOIR RPLC 15895 357614 4/21/22 790 .36 SOUTHERN CALIF TRUCK STOP MOP 45758 GENERAL AUTO SUPPLIES -PW 357 615 4/21/22 110.42 WARRANT REGISTER # 42
4/21/2022
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PAYEE DESCRIPTION CHK NO DATE AMOUNT
WARRANT REGISTER # 42
4/21/2022
SOUTHWEST SIGNAL SERVICE TRAFFIC SIGNAL MAINTENANCE / PW 357616 4 /21/22 47,961.57 STAPLES BUSINESS ADVANTAGE STAPLES MOP OFFICE SUPPLIES / HED 3576 17 4/21/22 69.81 SUPERIOR READY MIX ASPHALT, TACK 3/8 SHEET FOR FY 2022 357618 4/2 1/22 349.11 SYSCO SAN DIEGO INC FOOD / NUTRITION CENTER 357620 4/21/22 2,881.2 5 T MAN TRAFFIC SUPPLY STREET SIGNS / PW 357621 4/21/22 1,462.88 TEC-DURAZO TRAINING ADV LDG HONOR GUARD 357622 4/21/22 552.96 TECHNOLOGY INTEGRATION GROUP MISC MIS EQUIP FOR FY22 357623 4/21/ 22 1,872.54 TERRA BELLA NURSERY INC 24' METROSIDEROS EXCELSE / PARKS 357624 4 /21/22 296.29 THE STAR NEWS PUBLIC NOTICE - STAR NEWS 357625 4/21/22 676.51 TOPECO PRODUCTS MOP 63849 AUTO SUPPLIES 357626 4/21/22 20.87 TRANS-LANG TRANSLATION SERVICES - CITY COUNCIL MTG. 357627 4/21/2 2 743.75 TRI TECH FORENSICS INC RFQ #1147 LAB SUPPLIES FOR PROPERTY & EV 3 57628 4/21/22 2,394.00 TRI TECH REPROGRAPHICS PRINTING/BUILDING 357629 4/21/22 75.04 UNITED ROTARY BRUSH CORP STREET SWEEPER REPAIRS AND MAINTENANCE 3 57630 4/21/22 727.92 US BANK PD TRAINING CARD CPT. HERNANDEZ 357631 4/21/22 1,500.34 VISION SERVICE PLAN APRIL 2022 - VISION SERVICE PLAN (CA) 357632 4/21/22 834.44 WAXIE SANITARY SUPPLY MISCELLANEOUS JANITORIAL SUPPLIES / PW 3576 33 4/21/22 1,786.69 WESTFLEX INDUSTRIAL MOP 63850 GENERAL SUPPLIES- PW 357634 4/21/22 177.46 Z A P MANUFACTURING INC STREET SIGNS / PW 357635 4/21/22 1,786.98 A/P Total 594,568.60
WIRED PAYMENTS
SAN DIEGO GAS & ELECTRIC NUTRITION CTR SDG&E 02.18.2022 542153 4/ 15/22 4,187.20 PAYCHEX BENEFIT TECH INC BENETRAC ESR SERVICES BASE FEE - APRIL 7 35320 4/15/22 569.55
PAYROLL
Pay period Start Date End Date Check Date
9 4/5/2022 4/18/2022 4/27/2022 1,141,471.71
GRAND TOTAL 1,740,797.06 $
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CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
ITEM TITLE:
DEPARTMENT:
PHONE:
EXPLANATION: APPROVED BY:
AGENDA ITEM NO.: MEETING DATE:
ENVIRONMENTAL REVIEW:
FINANCIAL STATEMENT: APPROVED: FINANCE
ORDINANCE: INTRODUCTION
ACCOUNT NO.
STAFF RECOMMENDATION:
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
FINAL ADOPTION
APPROVED: MIS
PREPARED BY:
Warrant Register # 43
Ratify Warrants Totaling $950,740.08.
This is not a project and, therefore, not subject to environmental review.
Warrant total $950,740.08.
Per Government Section Code 37208, below are the payments issued for period 4/22/22 - 4/28/22.
Consistent with Department of Finance’s practice, listed below are all payments above $50,000.
Vendor Check/Wire Amount Explanation
Crest Equipment Inc 357695 140,350.23 CIP 19-02 El Toyon/Las P almas Bicycle Adminsure Inc 42722 94,731.20 WC Account Replenishment Public Emp Ret System 42822 274,354.40 Service Period 4/5/22 – 4/18/22 619-336-4572 FinanceKarla Apalategui, Senior Accountant Assistant Warrant Register #43 for the period of 4/22/22 through 4/28/22 in the amount of $950,740.08. (Finance) June 7, 2022
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PAYEE DESCRIPTION CHK NO DATE AMOUNT
ACE UNIFORMS & ACCESSORIES INC UNIFORM AND ACCESSORIES FOR FY22 3 57636 4/22/22 504.25 ALLSTATE SECURITY SERVICES INC SECURITY GUARD FEB'22/LIBRARY 3576 37 4/22/22 2,243.67 AMAZON SUPPLIES FY22 WATERPROOF HARD DRIVE/LIB 357638 4/22/22 205. 20 ASSESSMENTS 24X7 PRC #11974, EIQ CERTIFICATION CP 357639 4/22/22 7 ,984.00 BRAINFUSE, INC EDUCATION SERVICES, ONLINE TUTORING/LIB 357640 4/2 2/22 5,000.00 BUTLER THERAPY INC. EMR PSYCHOTHERAPY SERVICES MARCH 2022 357641 4/22/22 800.00 CAL UNIFORMS INC UNIFORMS AND ACCESSORIES FOR FY22. 357642 4/22/2 2 523.04 CI TECHNOLOGIES, INC. ANNUAL MAINTENANCE CONTRACT RENEWAL / PD 35 7643 4/22/22 14,400.00 COUNTY OF SAN DIEGO OBSERVER SAFETY CLOTHING FOR AUTOPSIES 357644 4/22/22 63.00 DEMCO INC LIBRARY SUPPLIES, TOOLS FY 22 357645 4/22/22 887.01 DEMCO INC OUT OF STATE TAXES OWED TO DEMCO/ LIBRARY 357646 4/22/2 2 65.76 DEPT OF JUSTICE DOJ FINGERPRINTING FOR FY22 357647 4/22/22 524.00 EDD INVESTIGATIONS TOOL/FORMS REIMBURSEMENT 357649 4/22/22 195.00 FON JON PET CARE CENTER BOARDING AND BATH SERVICES RENDERED / PD 357650 4/22/22 255.00 FOX VALLEY TECHNICAL COLLEGE CHILD HOMICIDE INVESTIGATIONS TRAIN ING / PD 357651 4/22/22 395.00 GRAINGER FIRST AID KITS / PD 357653 4/22/22 1,719.90
GRANFONDO CYCLING TOURS, INC TUP EVENT PATROL SERVICES REFUND 357 654 4/22/22 636.80 LASER SAVER INC MOP 45725, TONER/PRINTING SUPPLIES/POLICE 357655 4/22/22 847.82 LORTE TECHNOLOGIES INC FL350 FINGERTIP PULSE OXIMETER / FIRE 3576 56 4/22/22 495.00 MAN K9 INC MONTHLY TRAINING MAINTENANCE 357657 4/22/22 1,184.00 MES CALIFORNIA P/N 4013-L (9) CUSTOM HEXARMOR/FIRE 357658 4/22/22 2,664.63 MIDWEST TAPE DVDS/LIBRARY 357659 4/22/22 952.31
OFFICE SOLUTIONS BUSINESS MOP 83778, OFFICE SUPPLIES/PD 357661 4/ 22/22 252.39 PALOMAR HEALTH SEXUAL ABUSE FORENSIC EXAMS FOR FY22 357662 4/22/2 2 1,350.00 POLICE AND FIRE PSYCHOLOGY PRE-EMPLOYMENT PSYCHOLOGICAL EVALS 357 663 4/22/22 1,700.00 PRO BUILD COMPANY MOP 45707. SUPPLIES/ POLICE DEPARTMENT 357664 4 /22/22 833.67 PROFESSIONAL SEARCH GROUP LLC ADMINISTRATIVE PROFESSIONAL SERVIC ES/PD 357665 4/22/22 6,075.00 PROFORCE LAW ENFORCEMENT SUPPLIES FOR POLICE DEPARTMENT 357666 4/ 22/22 7,103.06 ROADONE MOP 75948. TOWING CHARGES / PD 357667 4/22/22 160.00 SAN DIEGO MIRAMAR COLLEGE TRAINING TUITION ROT CARLOMAGNO 357668 4/22/22 23.00 SAN DIEGO PET SUPPLY MOP 45753, K9 SUPPLIES/POLICE DEPARTMENT 357 669 4/22/22 485.78 SAN DIEGO POLICE EQUIPMENT FED GM308M-5, FEDERAL GOLD MEDAL / PD 357670 4/22/22 3,673.43 SHRED-IT DOCUMENT SHREDDING SERVICES 357671 4/22/22 809.18 SOUTHWEST BOULDER & STONE INC COMMUNITY SERVICE DAY MULCH AND DG 357672 4/22/22 978.89 STAPLES BUSINESS ADVANTAGE MOP 45704. OFFICE SUPPLIES/POLICE DEP ART 357673 4/22/22 233.48 T MOBILE USA INC GPS LOCATE SERVICES 357674 4/22/22 355.00 THE COUNSELING TEAM PRC #11973 EMPLOYEE SUPPORT SERVICES 357675 4 /22/22 1,600.00 U S BANK TRAINING PD CREDIT CARD 357677 4/22/22 5,863.05 VCA EMERGENCY ANIMAL HOSPITAL EMERGENCY EXAM 357678 4/22/22 1,098. 23 WEST PAYMENT CENTER WEST INVESTIGATIVE SERVICES FOR FY22 357679 4 /22/22 1,428.00 WORTH AVE GROUP, LLC INSURANCE POLICY/LIBRARY 357680 4/22/22 159.6 2 ADMINSURE INC AGREEMENT TO PROVIDE MONTHLY SERVICES 357681 4/28/ 22 8,109.00 ALDEMCO FOOD / NUTRITION CENTER 357682 4/28/22 4,405.18 ALPHA PROJECT FOR THE HOMELESS ALPHA PROJECT IS TO PROVIDE SERVI CES 357683 4/28/22 4,208.30 AMAZON COMM SRVCS DAY KIDS CRAFTS MATERIALS 357684 4/28/22 221.05 ANSER ADVISORY MANAGEMENT, LLC CIP 19-18 NATIONAL CITY BLVD BIKE WAY - ENG 357685 4/28/22 4,827.00 APS LIGHTING & SAFETY PRODUCTS 4050, LED SIGNAL STAT S/T/T 4" RO UND 357686 4/28/22 249.66 AT&T AT&T SBC ANNUAL PHONE SERVICE FOR FY22 357687 4/28/22 5,041.7 6 WARRANT REGISTER # 43
4/28/2022
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PAYEE DESCRIPTION CHK NO DATE AMOUNT
WARRANT REGISTER # 43
4/28/2022
AT&T AT&T SBC ANNUAL PHONE SERVICE FOR FY22 357688 4/28/22 128.62 BRINK'S INCORPORATED TRANSPORTATION - BILLING PERIOD 04/1-04/22 3 57689 4/28/22 393.64 BULLDOG TOWING LAND TRANSPORT 357690 4/28/22 487.50
CALIFORNIA ASSOCIATION OF CODE CACEO AUTOREPAIR WEBINAR / NSD 357 691 4/28/22 310.00 CHEN RYAN ASSOCIATES INC BAYSHORE BIKEWAY SEGEMENT 5 - ENG/PW 35 7692 4/28/22 45,300.05 CIRCULATE SAN DIEGO SENIOR SATURDAYS CIRCULATE SAN DIEGO EVENT 35 7693 4/28/22 1,136.61 COX COMMUNICATIONS COX DATA VIDEO SERVICES FOR FY22 357694 4/28/2 2 2,164.37 CREST EQUIPMENT INC CIP 19-02 EL TOYON LAS PALMAS BICYCLE 357695 4/28/22 140,350.23 CRUZ TRAINING REM TC / PW 357696 4/28/22 147.64
DANIELS TIRE SERVICE TIRES FOR CITY FLEET FOR FY 2022 357697 4/28 /22 6,702.94 DE LAGE LANDEN LEASE 20 SHARP COPIERS FOR FY21 357698 4/28/22 2,93 9.63 DEAN GAZZO ROISTACHER LLP LIABILITY CLAIM COST 357699 4/28/22 2,33 4.00 DEAN GAZZO ROISTACHER LLP LIABILITY CLAIM COST 357700 4/28/22 1,35 3.00 DEAN GAZZO ROISTACHER LLP LIABILITY CLAIM COST 357701 4/28/22 840. 00 DEAN GAZZO ROISTACHER LLP LIABILITY CLAIM COST 357702 4/28/22 460. 00 DEPARTMENT OF JUSTICE NEW EMPLOYEE FINGERPRINT TEST RESULTS 3577 03 4/28/22 256.00 D-MAX ENGINEERING INC CIP 21-14 NC STORM WATER SERVICES - ENG/PW 357704 4/28/22 15,942.52 ECOLAB CHEMICALS FOR DISHWASHER / NUTRITION 357705 4/28/22 98.85 EPIC LAND SOLUTIONS INC EPIC LAND SOLUTIONS APPRAISAL OF 1845 E AVE 357706 4/28/22 3,500.00 EXOS COMMUNITY SERVICES LLC PROFESSIONAL SERVICES MANAGEMENT FEE S 357707 4/28/22 19,638.52 EXPERIAN EMPLOYMENT INSIGHT CREDIT PROFILES 357708 4/28/22 27.72 FALLEN OFFICERS FUND TRAINING TUITION GANG CONF 357709 4/28/22 1,5 00.00 FINANCIAL CREDIT NETWORK, INC COLLECTION ACCT PAID TO CITY/ACCT# 002118 357710 4/28/22 415.44 FLEET SERVICES INC BRAKE DRUM / PW 357711 4/28/22 695.72 GEOSYNTEC CONSULTANTS INC CNC NCFD COMPLIANCE WORK - ENG/PW 35771 2 4/28/22 5,829.49 GONZALES TRAINING FTO 357713 4/28/22 132.87
HOME DEPOT CREDIT SERVICES GENERAL SUPPLIES NEEDED FOR PARKS 3577 14 4/28/22 225.51 IBARRA TRAINING DUI SFST 357715 4/28/22 178.09
IDEMIA IDENTITY & SECURITY USA NEW EMPLOYEE FINGERPRINT TEST SUB MISSION 357716 4/28/22 16.00 INNOVATIVE CONSTRUCTION CIP 19-35 PARADISE CREEK AT KIMBALL WAY 3 57717 4/28/22 19,829.50 KIMLEY HORN AND CIP 21-13 TRAFFIC COUNTS AND ANALYSIS 357718 4/2 8/22 845.00 KREISBERG LAW FIRM PROFESSIONAL CONSULTING AND COMPENSATION 35771 9 4/28/22 13,500.00 KTUA CLEAN CA PROGRAM GRANT - ENG/PW 357720 4/28/22 5,595.00 LASER SAVER INC QTY 1HP CF410X BLACK TONER 357721 4/28/22 826.12 LEFORT'S SMALL ENGINE REPAIR MOP 80702 AUTO SUPPLIES - PW 357722 4/28/22 14.14 LUTH AND TURLEY INC. LIABILITY CLAIM COST 357723 4/28/22 3,424.50 LUTH AND TURLEY INC. LIABILITY CLAIM COST 357724 4/28/22 1,471.63 LUTH AND TURLEY INC. LIABILITY CLAIM COST 357725 4/28/22 1,117.17 MC GOUGH TRAINING ADV SUB ICI CORE 357726 4/28/22 2,031.12 MC GOUGH TRAINING REIM IDI BASIC INSTRUCTOR 357727 4/28/22 769.00 MC GOUGH TRAINING REIM ICI FLIGHT CORE INV 357728 4/28/22 494.95 MCALISTER INSTITUTE HOMELESS CASE MANAGEMENT SERVICES 357729 4/2 8/22 19,095.70 MTS MTS GRAFFITI REMOVAL FLAGGERS FY 357731 4/28/22 317.52 NATIONAL CITY POLICE EXPLORER DONATION EXPLORER PROGRAM 357732 4/ 28/22 2,000.00 OFFICE SOLUTIONS BUSINESS MOP 83778 OFFICE SUPPLIES/FINANCE 35773 3 4/28/22 10.16 OTIS L. STITT TRAINING CERTIFCATION FOR FOOD SERVICE 357734 4/28 /22 506.00 PACIFIC PRODUCTS & SERVICES SUPPLIES FOR PUBLIC WORKS 357735 4/28 /22 1,482.53 PARTS AUTHORITY METRO LLC MOP 75943 AUTO SUPPLIES - PW 357736 4/2 8/22 147.74 2/3
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PAYEE DESCRIPTION CHK NO DATE AMOUNT
WARRANT REGISTER # 43
4/28/2022
PRO BUILD COMPANY MOP 45707 GENERAL SUPPLIES PW 357737 4/28/22 1,2 40.88 PROFESSIONAL SEARCH GROUP LLC TEMP SERVICES / SECTION 8 357738 4/ 28/22 5,700.00 PRUDENTIAL OVERALL SUPPLY LAUNDRY SERVICE / NUTRITION 357739 4/2 8/22 752.89 RAMIREZ TRAINING NATIONAL INTERNAL AFFAIRS 357740 4/28/22 1,287.31 SAKAMOTO TRAINING REIM LESS LETHAL INST 357741 4/28/22 273.87 SAKAMOTO TRAINING REIM BASIC SNIPER 357742 4/28/22 24.57 SAN DIEGO HYDRAULICS TREE TRUCK 357743 4/28/22 4,398.32 SAN DIEGO MIRAMAR COLLEGE TRAINING TUITION ROT SABALA TEC 357744 4/28/22 46.00 SBCS CORPORATION HOME AGREEMENT: SOUTH BAY COMMUNITY 357745 4/28/ 22 40,506.15 SDG&E GAS AND ELECTRIC UTILITIES FOR STREETS 357746 4/28/22 37,047 .27 SEAPORT MEAT COMPANY FOOD / NUTRITION CENTER 357747 4/28/22 480.35 SEECLICKFIX INC SEECLICKFIX ANNUAL LICENSING 357748 4/28/22 18,39 1.95 SITEONE LANDSCAPE SUPPLY LLC MOP 69277 LANDSCAPE SUPPLIES PW 357 749 4/28/22 345.43 SMART & FINAL INGREDIENTS FOR 4/15/22 LUNCH MENU / NUTRITION 3577 50 4/28/22 67.15 SMART SOURCE OF CALIFORNIA LLC MOP 63850 GENERAL SUPPLIES- PW 357 751 4/28/22 5,000.35 SOUTH COAST EMERGENCY WASHER, POLYSTER POLYURET REPLACES PART 357 752 4/28/22 318.69 SOUTHWEST BOULDER & STONE INC 20024- SUPREME WALK ON BARK 357753 4/28/22 907.04 SPOK INC SPOK METROCALL PAGING FY22 357754 4/28/22 663.68 STAPLES BUSINESS ADVANTAGE MOP 45704 OFFICE SUPPLIES - PW 357755 4/28/22 1,832.66 STAPLES BUSINESS ADVANTAGE OFFICE SUPPLIES/ BUILDING 357756 4/28/ 22 177.41 STINNETT TRAINING POST/LDG SUB ICI CORE 357757 4/28/22 2,029.95 STINNETT TRAINING TRAVEL REIM ICI CORE 357758 4/28/22 494.95 SUPERIOR READY MIX ASPHALT, TACK 3/8 SHEET FOR FY 2022 357759 4/2 8/22 724.08 SWAGIT PRODUCTION LLC SWAGIT WEBCAST FY22 357760 4/28/22 1,920.83 SWEETWATER AUTHORITY WATER SERVICES / PW 357762 4/28/22 29.26 SYSCO SAN DIEGO INC FOOD / NUTRITION CENTER 357763 4/28/22 3,371.7 2 TELLEZ TRAINING REIM TRI COUNTY CHIEFS CONF 357764 4/28/22 519.67 THE BANK OF NEW YORK MELLON CUSTODIAN FEE PERIOD 10/1/2019 TO 12 /31/19 357765 4/28/22 300.00 THE NYHART COMPANY FYE 6/30/21 INTERIM GASB 75 COVERS JAN 1 35776 6 4/28/22 2,000.00 THE PUN GROUP LLP PROGRESS BILLING#5 - AUDIT FOR THE YEAR 357767 4/28/22 8,490.00 T'S & SIGNS ST650 POLOS WITH CITY LOGO, NAME 357768 4/28/22 315.38 U S BANK MARCH US BANK STATMENT - LIBRARY 357769 4/28/22 891.69 VERIZON WIRELESS VERIZON CELLULAR SERVICES FOR FY22 357770 4/28/2 2 195.08 VIDEO TRACK LLC TRANSCRIPTION AND EDITING FOR CASE #2101 357771 4 /28/22 8,456.00 WILLY'S ELECTRONIC SUPPLY WILLYS ELECTRONICS MOP FY22 357772 4/28 /22 72.83 WORLD OIL ENVIRONMENTAL SVCS NON- CONFORMING OIL FILTERS 357773 4 /28/22 85.00 A/P Total 580,130.27
WIRED PAYMENTS
ADMINSURE INC WORKERS' COMPENSATION ACCOUNT REPLENISHM 42722 4/27 /22 94,731.20 PUBLIC EMP RETIREMENT SYSTEM SERVICE PERIOD 04/5/2022 - 04/18/20 22 42822 4/28/22 274,354.40 SAN DIEGO GAS & ELECTRIC NUTRITION CENTER - 2.18.22 - 3.21.22 156 123 4/27/22 1,524.21 GRAND TOTAL 950,740.08$
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The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City, California adopting a budget for fiscal year 2023. (Finance)
Please scroll down to view the backup material.
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CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: June 7, 2022 AGENDA ITEM NO.
ITEM TITLE:
Resolution of the City Council of the City of National City adopting a budget for fiscal year 2023.
PREPARED BY: Paul Valadez, Budget Manager
PHONE: 619-336-4332
DEPARTMENT: Fi
�
n
.
an / /s:2'.. APPROVED BY: Vy l,______.�-r EXPLANATION:
See attached staff report.
FINANCIAL STATEMENT: APPROVED:
ACCOUNT NO. APPROVED:
See attached staff report.
ENVIRONMENTAL REVIEW:
This is not a project and, therefore, not subject to environmental review.
ORDINANCE: INTRODUCTION: D FINAL ADOPTION: D
STAFF RECOMMENDATION:
-------
Adopt the City of National City Fiscal Year 2023 Proposed Budget, as presented.
BOARD/ COMMISSION RECOMMENDATION:
ATTACHMENTS:
1. Staff Report
2. Resolution
3. FY2022/2023Proposed budget is available for review at www.nationalcityca.gov Finance
MIS
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City Council Staff Report
June 7, 2022
ITEM
Staff Report: Resolution of the City Council of the City of Nat ional City adopting a budget for fiscal year 2022-2023.
BACKGROUND
After a series of internal staff meetings and two City Council workshops, staff presents for adoption the Fiscal Year 2022-2023 Proposed Budget for the City of National City.
Preparation of the City’s budget is a multi-step process, occur ring over several months.
Development of the fiscal year 2022-2023 capital budget began in November 2021 with meetings of the City’s CIP (Capital Improvements Program) Committee, to discuss prioritization of capital projects and vehicle fleet needs. Development of the City’s operating budget began in December 2021 with direction to City departments to review their current fiscal year budgets and expenditures and to submit appropriation requests by February 2 022. Finance staff met with representatives from each department along with the City Manage r, Assistant City Manager, and Director of Administrative Services in March to finalize the preliminary budget.
FISCAL YEAR BUDGET
A workshop to present the preliminary budget was held on April 19, 2022 that focused on the City’s fiscal and budgetary health, and the strategic plan. Th e City Manager discussed efforts to increase ongoing revenue, as we ll as maintain current expenditu re levels. An overview of fiscal year 2023 Federal American Rescue Plan Act (ARPA) funding was also presented.
After a review of the City’s historical revenue and expenditure trends, projected revenues and expenditures, and projected use of unassigned fund balance, a summary of the Preliminary Budget was presented. Council directed staff to return with more information .
On May 18, 2021, a revised preliminary budget was presented to Council incorporating the aforementioned changes, as well as adjustments, corrections, an d other refinements deemed necessary (see table below for changes). Staff now presents th e City of National City’s Fiscal Year 2022-2023 Proposed Budget for adoption.
The proposed budget estimates General Fund revenues and transfers-in totaling $66.6 million and recommends General Fund expenditu res and transfers out totaling $66.2 million. The proposed budget estimates overall revenues and transfers in totaling $134.4 million and recommends overall expenditures and transfers out totaling $132.7 million.
Budget Adjustments & Refinements since Preliminary Budget General Fund
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Staff Report: Resolution of the City Council of the City of National City adopting a budget for fiscal year 2021- 2022.
June 1, 2021
Expenditures & Transfers Out – Increase/(Decrease)
Personnel Services $ 495,669
Maintenance & Operations 291,972
Capital Outlay (32,000)
Transfers Out 245,535
Total Changes: Expenditures & Transfers-Out – Increase/(Decrease) $1,064,892 Revenues & Transfers In – Increase/(Decrease)
Other Revenues $ 60,000
Total Changes: Revenues & Transfers-In – Increase/(Decrease) 60,000 Net Increase/(Decrease) in Use of GF Fund Balance $1,004,892
Estimated FY23 (Use)/Gain Fund Balance $ 363,664
FINANCIAL STATEMENT
The estimated change in the fund balance of the General Fund ex pected as the result of the projected revenues, expenditures, and transfers reflected in th e proposed budget for fiscal year 2022-2023 is an increase of $363,664. This use of fund balance falls entirely within the unassigned category to support operational costs and maintenance of effort requirements for the receipt of gas tax and TransNet revenues. General Fund unassigned fund balanc e is projected to end the fiscal year 2021-2022 at approximately $14.7 million. The gain in fund balance estimated for fiscal year 2022-2023 will increase unassigned fund balance to approximately $15.1 million.
RECOMMENDATIONS
Adopt the City of National City Fiscal Year 2022-2023 Proposed Budget, as presented.
ATTACHMENTS
Resolution
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CITY OF NATIONAL CITY
BUDGET ANALYSIS BY FUND
FISCAL YEAR 2023
Fund Fund Name
Estimated
Revenues Transfers In Transfers Out
Proposed
Expenditures
Net Impact
FY23 Proposed
001 General Fund 64,574,077 $ 2,005,500 $ (2,557,210) $ (63,658,703)$ 363,664 $ 104 Library Fund 963,272 1,184,150 - (2,147,422) - 105 Parks Maintenance Fund 1,131,625 838,345 - (1,969,970) - $ 108 Library Capital Outlay Fund 160,000 - (51,900) 108,100 109 Gas Taxes Fund 3,269,653 - (3,005,318) 264,335 117 American Rescue Plan Act - ARPA 9,005,454 (2,500,000) (2,500,000) 4,005,454 125 Sewer Service Fund 9,931,785 - (10,777,336) (845,551) 130 EMT-D Revolving Fund 334,124 - (325,380) 8,744 166 Nutrition Fund 413,600 703,035 (48,000) (1,064,835) 3,800 172 Trash Rate Stabilization Fund 215,000 - (196,431) 18,569 195 Mile of Cars Landscape Maint. Dist. Fund 156,912 16,753 (5,500) (168,165) - 211 Security & Alarm Regulation Fund 36,600 - - 36,600 212 Post-Employment Benefits Fund 360,000 - (360,000) - 258 Pension Obligation Bonds Fund - 5,729,428 - (5,729,428) - 259 Library Bonds Debt Service Fund 393,815 - (392,650) 1,165 277 National City Public Library Donations Fund 1,500 - (1,500) - 282 Reimbursable Grants City-Wide Fund 609,685 - (678,316) (68,631) 290 Police Dept Grants - - - - 296 Engineering Department Grants Fund - - - - 301 Community Development Block Grant Fund 710,043 - - (902,646) (192,603) 307 TransNet 1,784,000 - (1,784,000) - 320 Library Grants Fund - - - - 325 Development Impact Fees Fund 41,000 - (200,000) (159,000) 326 Transportation Impact Fee Fund (1,000,000) (1,000,000) 420 Parking Authority 265,500 - - (265,472) 28 501 Housing Authority Fund 856,073 (545,073) (1,365,097) (1,054,097) 502 Housing Choice Voucher Fund 15,051,642 - (14,714,842) 336,800 505 HOME Fund 400,681 - (259,274) 141,407 532 Low & Moderate Income Housing Asset Fund 125,000 - (185,222) (60,222) 626 Facilities Maintenance Fund 3,059,638 48,000 - (3,107,638) 0 627 Liability Insurance Fund 3,879,083 - (4,243,695) (364,612) 629 Information Systems Maintenance Fund 2,712,516 - (3,194,505) (481,989) 630 Office Equipment Depreciation Fund - - - (32,000) (32,000) 643 Motor Vehicle Service Fund 1,366,307 - (1,366,307) 0 $ 644 Vehicle Replacement Fund 1,518,079 500,000 - (1,362,000) 656,079 $ Total, All Funds 122, 966,664$ 11,385,211 $ (5,655,783) $ (127,010,049)$ 1,686,042 $ 230 of 384
RESOLUTION NO. 2022 –
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA, ADOPTING A BUDGET FOR THE FISCAL YEAR 2023
WHEREAS, on April 19, 2022, in accordance with National City Municipal Code §2.55.030, the City Manager submitted a preliminary budget for the 2023 Fiscal Year to the City Council and said budget was discussed and deliberated in public session; and WHEREAS, on June 7, 2022, the City Council recei ved the proposed budget for the 2023 Fiscal Y ear, the “Fiscal Year 2023 Proposed Budget,” that i ncorporated adjustments to said preliminary budget as directed by the City Council or advised by the City Manager.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: The all funds budget for the Fiscal Year beginning July 1, 2022, with City expenditures totaling $132,566,422 is hereby approved, adopted, and appropriated.
Section 2: The amounts by fund outlined in the “Transfers Out” and “Proposed Expenditures” column of “Exhibit 1 ” attached hereto and incorporated herein by this reference shall be the maximum expenditures authorized for those funds for the Fiscal Year 2023.
Section 3: The City Manager is hereby authorized to make budgetary revisions between budget units within a fund after the adoption of this budget.
Section 4: The City Manager is hereby authorized to transfer monies between funds up to the maximum outlined in the “Transfers” column in “Exhibit 1” attached hereto and incorporated herein by this reference.
Section 5: The estimated financing sources by fund available to meet the authorized expenditures and transfers are approved and adopted as detailed in the Fiscal Year 2023 Proposed Budget and incorporated herein by this reference.
Section 6: The City Manager is authorized to adjust amounts of said financing sources subsequent to budget adoption i f any appropriation balances carried forward from prior fiscal years had an associated revenue source at the time the ap propriation was established.
Section 7: The City Council of the City of National City hereby authorizes and approves the number and classification of employees in the respective functions, departments, and activities outlined in the Fiscal Year 2023 Proposed Budget and incorporated herein by this reference.
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Resolution No. 2022 -
Page Two
Section 8: The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 7th day of June, 2022.
__________________________
Alejandra Sotelo Solis, Mayor
ATTEST:
_____________________________
Luz Molina, City Clerk
APPROVED AS TO FORM:
____________________________
Charles E. Bell Jr, City Attorney
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CITY OF NATIONAL CITY
BUDGET ANALYSIS BY FUND
FISCAL YEAR 2023
Fund Fund Name
Estimated
Revenues Transfers In Transfers Out
Proposed
Expenditures
Net Impact
FY23 Proposed
001 General Fund 64,574,077 $ 2,005,500 $ (2,557,210) $ (63,658,703)$ 363,664 $ 104 Library Fund 963,272 1,184,150 - (2,147,422) - 105 Parks Maintenance Fund 1,131,625 838,345 - (1,969,970) - $ 108 Library Capital Outlay Fund 160,000 - (51,900) 108,100 109 Gas Taxes Fund 3,269,653 - (3,005,318) 264,335 117 American Rescue Plan Act - ARPA 9,005,454 (2,500,000) (2,500,000) 4,005,454 125 Sewer Service Fund 9,931,785 - (10,777,336) (845,551) 130 EMT-D Revolving Fund 334,124 - (325,380) 8,744 166 Nutrition Fund 413,600 703,035 (48,000) (1,064,835) 3,800 172 Trash Rate Stabilization Fund 215,000 - (196,431) 18,569 195 Mile of Cars Landscape Maint. Dist. Fund 156,912 16,753 (5,500) (168,165) - 211 Security & Alarm Regulation Fund 36,600 - - 36,600 212 Post-Employment Benefits Fund 360,000 - (360,000) - 258 Pension Obligation Bonds Fund - 5,729,428 - (5,729,428) - 259 Library Bonds Debt Service Fund 393,815 - (392,650) 1,165 277 National City Public Library Donations Fund 1,500 - (1,500) - 282 Reimbursable Grants City-Wide Fund 609,685 - (678,316) (68,631) 290 Police Dept Grants - - - - 296 Engineering Department Grants Fund - - - - 301 Community Development Block Grant Fund 710,043 - - (928,817) (218,774) 307 TransNet 1,784,000 - (1,784,000) - 320 Library Grants Fund - - - - 325 Development Impact Fees Fund 41,000 - (200,000) (159,000) 326 Transportation Impact Fee Fund (1,000,000) (1,000,000) 420 Parking Authority 265,500 - - (265,472) 28 501 Housing Authority Fund 856,073 (545,073) (1,234,515) (923,515) 502 Housing Choice Voucher Fund 15,051,642 - (14,714,842) 336,800 505 HOME Fund 400,681 - (264,274) 136,407 532 Low & Moderate Income Housing Asset Fund 125,000 - (185,222) (60,222) 626 Facilities Maintenance Fund 3,059,638 48,000 - (3,107,638) 0 627 Liability Insurance Fund 3,879,083 - (4,243,695) (364,612) 629 Information Systems Maintenance Fund 2,712,516 - (3,194,505) (481,989) 630 Office Equipment Depreciation Fund - - - (32,000) (32,000) 643 Motor Vehicle Service Fund 1,366,307 - (1,366,307) 0 $ 644 Vehicle Replacement Fund 1,518,079 500,000 - (1,362,000) 656,079 $ Total, All Funds 122,966,664 $ 11,385,211 $ (5,655,783) $ (126,910,639)$ 1,785,453 $ 233 of 384
The following page(s) contain the backup material for Agenda Item: Adoption of Resolutions Ordering the Submission of a Ballot Measure to the qualified voters of the City of National City at the Statewide Gubernatorial Municipal Election to be held on November 8, 2022, to make the Office of City Clerk Appointive. (City Manager) Please scroll down to view the backup material.
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CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
One-time election costs of $25,000, which have been included in the FY23 budget appropriations. If approved by voters, annual saving of approximately $31,000 to the General Fund.
n/a
ITEM TITLE:
PREPARED BY: DEPARTMENT:
PHONE:
EXPLANATION:
APPROVED BY:
AGENDA ITEM NO. MEETING DATE:
ENVIRONMENTAL REVIEW:
This action is not subject to review under the California Environmental Quality Act (CEQA).
FINANCIAL STATEMENT: APPROVED: Finance
ORDINANCE: INTRODUCTION:
ACCOUNT NO.
STAFF RECOMMENDATION:
BOARD / COMMISSION RECOMMENDATION:
RECOMMENDATION:
ATTACHMENTS:
_ Tony Winney
__________________
________________
June 7, 2022
Adoption of Resolution s Ordering the Submission of a Ballot Measure to the qualified voters of the City of National City at the Statewide Gubernatorial Municipal Election to be held on November 8, 2022, to make the Office of City Clerk Appointive.
City Manager’s Office
Per City Council direction at the May 17, 2022 City Council Meeting, the City Manager to draft a Resolution to place a measure on the November 8, 2022, ballot regarding the Office of the City Clerk as an appointed position. Therefore, placing the question on the Gubernatorial Municipal Election Ballot wherein the voters shall decide, “Shall the Office of the City Clerk be Appointive?” “Yes” or “No”?
See the report for additional information including additional staff recommendations.
Tony Winney, Assistant City Manager
Attachment 1 - Resolution Calling for the Holding of a General Municipal Election Attachment 2 - Proposed Ordinance: Amending Sections of National City Municipal Code relating to the City Clerk’s position, if successful Election Attachment 3 – Proposed Ordinance Amending National City Municipal Code Section 2.73 relating to the City Clerk’s and City Treasurer’s posit ion if both become Appointive following the Certification of Election Results.
FINAL ADOPTION:
APPROVED: ________________ MIS
Staff recommends that the City Council adopt resolutions providing the submission of a Ballot Measure to the Voters to make the Office of the City Clerk Appointive, Directing the Preparation of an Impartial Analysis and Establishing Procedures for Ballot Arguments. Introduce an Ordinance Amending National City Municipal Code to be adopted only following a successful Election.
(619) 336-4240
x
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AGENDA REPORT
Department: City Manager's Office
Prepared by: Tony Winney, Assistant City Manager Meeting Date: June 7, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
Adoption of Resolutions Ordering the Submission of a Ballot Measure to the qualified voters of the City of National City at the Statewide Gubernatorial Municipal Election to be held on November 8, 2022, to make the Office of City Clerk Appointive.
RECOMMENDATION:
On May 17, 2022 per City Council provided direction to staff was for the City Manager to draft a Resolution to place a measure on the November 8, 2022, ballot regarding the Office of the City Clerk as an appointed position. The measure would place the question on the Statewide Gubernatorial Municipal Election Ballot wherein voters would be asked to decide, “Shall the Office of City Clerk be Appointive?” “Yes” or “No”.
If the City Council chooses to direct staff to pursue a ballot measure to make the City Clerk an appointed position, the ballot question and the full text of the proposed ballot measure are included in Exhibit A to Attachment 1.
Staff seeks City Council direction on the adoption of resolutions providing the submission of a Ballot Measure to the Voters to make the Office of the City Clerk Appointive, Directing the Preparation of an Impartial Analysis and Establishing Procedures for Ballot Arguments, and Introduce an Ordinance Amending NCMC to be adopted only following a successful Election.
Attachment 1 - Resolution Calling for the Holding of a General Municipal Election for the purpose of submission of a ballot measure to the voters to make the Office of the City Clerk Appointive including Exhibit A: Proposed Ballot Measure Attachment 2 - Proposed Ordinance: Amending Sections of National City Municipal Code relating to the City Clerk’s position, if it becomes Appointive following the Certification of Election Results
Attachment 3 - Proposed Ordinance: Amending National City Municipal Code Section 2.73 relating to the City Clerk’s and City Treasurer’s position, if both become Appointive following the Certification of Election Results.
BOARD/COMMISSION PRIOR ACTION: None.
STATEMENT ON SUBJECT:
History of the Elected City Clerk Position and Supporting Staff Since incorporation in September 17, 1887, the City Clerk position has been an elected position, although not always a ceremonial only. Beginning in 1997, the City Council took action considering and defining the position of the elected City Clerk, taking into consideration certain changes and compensation levels to establish duties of those in the elected position versus staff positions in the Office of the City Clerk. At that time the City Clerk position became a part-time
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ceremonial position similar to that of the City Treasurer with non-mandated duties and responsibilities. A new position of Records Manager/Deputy City Clerk was created to manage the day-to-day responsibilities of the Office of the City Clerk. Creating a salaried position which would be filled by the Elected City Clerk making that person an elected official and member of staff.
On March 13, 2001, the positions returned to City Council bifurcating the statutory duties of the full-time Elected City Clerk with those of the to-be created position of Records Management Officer. To hold both positions, the elected incumbent would be required to meet both sets of qualifications and be appointed to the Records Management Officer position. Otherwise, another individual meeting the necessary qualifications would be appointed. Since the time of bifurcation, the position was held simultaneously by the same incumbent until the retirement of the Elected City Clerk/Records Management Officer in 2020.
On June 16, 2020, Resolution No. 2020-125, was adopted once again separating the City Clerk and Records Manager positions, with the City Clerk position reverting to a part-time ceremonial position. The Records Manager position to be delegated to a new Deputy City Clerk position.
The full-time Deputy City Clerk position is responsible for the day-to-day operations of the Office of the City Clerk including acting as City Clerk in the absence of the Elected City Clerk. This position is a member of the Management Employee Group and requires knowledge and experience in the field as well as licensed as a Notary Public and earning Credentials as a Certified Municipal Clerk by the International Institute of Municipal Clerks within one year of employment. The current Deputy City Clerk qualifies with over 22 years City Clerk’s Office experience, possesses a Bachelor’s Degree, and in addition has received the Master Municipal Clerk credentials including over 800 hours of training.
Under State Law, there are three qualifications for the position of an elected City Clerk:
A resident of the City
Registered to Vote in the City
At least 18 years old
With the duties, responsibilities, and requirements of a City Clerk changing significantly over the past 4 decades including the Ralph M. Brown Act (1953), The Public Records Act (1968), The Political Reform Act (1974), and The Maddy Act (1991), have required the position of City Clerk to be more responsible and therefore, more liable to the City for duties conducted during the regular course of business.
City Clerk Duties and Responsibilities
The basic, historic duties of the City Clerk are set forth in California Government Code 40801 through 40814.
These duties include:
• Keeping an accurate record of the proceeding of the Legislative Body • Recording, publishing and certifying City Ordinances
• Keeping custody of the City Seal
• Administering O aths or Affirmations and taking and certifying affidavits and depositions relating to City affairs and business for use in court or administrative proceedings.
In addition to these basic historic duties, the Legislature has assigned even greater and more complex responsibilities to the City Clerk over the years:
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• The City Clerk is the Elections Official for the City and interacts with the Registrar of Voters Office during all local elections to assure compliance with all Election Laws and Regulations.
• The City Clerk is responsible for ensuring compliance wi th the Ralph M. Brown Act, the State’s O pen Meeting Law, regarding the conduct of City business and responses to public inquiries.
• The City Clerk is the official responsible under the Political Reform Act for coordinating, recording and retaining the statements of economic interests of all elected and appointed officials and staff, and for collecting and maintaining all candidate campaign finance forms.
As the legal responsibilities and professional expertise required to fulfill the duties of the position have continued to increase, most elected City Clerks in California have been replaced by appointed professional staff with appropriate training and experience who typically perform both City Clerk and other City staff duties.
Area Cities Comparison
Out of the eighteen (18) San Diego County Cities, fifteen (15) have an appointed City Clerk.
The three (3) Cities currently retaining elected City Clerk positions are Oceanside, National City (Measure currently on the June ballot) and National City.
Of the 482 cities in California, 383 now have appointed City Clerks. The percentage of Elected City Clerks has continued to decline as the trend has been to move to an appointed position.
Additionally, the San Diego County Clerk of the Board of Supervisors, and the San Diego County Registrar of Voters are also appointed officials that serve in the same capacity as that of a City Clerk.
Converting the Role to an Appointed Position
Government Code Section 36509 provides authority to the City Council to place the question of whether the City Clerk should be an appointed position on the ballot. As a General Law City under the Council-Manager form of government, the City Council would confer the City Manager with authority to appoint the City Clerk position similar to other employees. If the measure is successful, an Ordinance would provide the City Manager with the appointing authority and making related amendments to the City of National City Municipal Code would take effect upon a successful election certification.
The current term of the City Clerk position ends in November 2024. City Clerk Molina woul d remain in that position until the end of term, unless she chose to resign the seat prior to the end of the term.
Considerations of an Appointive Position
The City Clerk’s role has become increasingly more technical, demanding certain skills, training and experience. Converting the elected role to an appointed position allows cities to set qualification criteria for the appointed position, requiring applicants to demonstrate the requisite skills, such as Certified Municipal Clerk certification by the International Institute of Municipal Clerks (IIMC). This helps ensure that the decision-making process is transparent to the public and complies with federal, state, and local regulations and ensures records and actions are properly recorded in an impartial manner.
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Ballot Measure Process
If the City Council chooses to direct staff to pursue a ballot measure to make the City Clerk an appointed position, the ballot question and the full text of the proposed ballot measure are included in Exhibit A to Attachment 1.
The State Elections Code states the City Council can designate members of City Council to write the ballot argument in favor and another member write against the measure, if they choose. Since up to five (5) people may be signatories to the argument, the City Council may also designate that the argument against can include other signatories.
If City Council designates themselves to write the in favor and against arguments, a nd multiple people submit arguments, the only ones to be published are the City Councils ’ For and/or Against Arguments. If Councilmembers on either side fail to submit arguments on time, then other submittals would be published based on the statutory priority list. Arguments in Favor and/or Against a Measure may be no more than 300 words.
Through the Ordinance Calling the Election, the City Council is allowing for Rebuttal Arguments, which would be prepared by the original authors unless they authorize in writing another person or persons to prepare, submit, or sign the rebuttal arguments (Elections Code Section 9285).
Rebuttal Arguments are limited to a maximum of 250 words.
The Office of the City Clerk is authorized to set the time for submittals of Arguments in Favor and/or Against the Measure and Rebuttals. The Office of the City Clerk has declared Friday, July 1, 2022 by noon as the deadline to submit Arguments in Favor of and/or Against the Measure to the City Clerk’s Office. Additionally, all Rebuttal Arguments must be summited by Monday, July 11, 2022 by noon to the City Clerk’s Office.
Ballot Measure Timeline
DUE DATE REQUIREMENT
Wednesday, June 22
(noon)
City Attorney’s Impartial Analysis is due to the City Clerk’s Office not to exceed 500 words in length.
Friday, July 1 (noon) Public Examination Period for Impartial Analysis Wednesday, June 22 –
Friday, July 1 (noon)
Arguments in Favor of/or Against the Ballot Measure are due to the City Clerk’s Office not to exceed 300 words in length.
Wednesday, July 6 Ballot text due to the Registrar of Voters Monday, July 11 (noon) Public Examination Period for Arguments Monday, July 11 (noon) Rebuttal Arguments are Due to the City Clerk’s Office not to exceed 250 words in length
Thursday, July 21 (noon) Public Examination Period for Rebuttal Arguments
Staff recommends that, if the City Council directs staff to pursue a Ballot Measure and the voters approve it, the City Council vest the City Manager with the appointment authority for the position. To accomplish this, the City Council would need to introduce and subsequently adopt the Ordinance proposed in Attachment 2. Although the Ordinance would not go into effect unless the voters approved the Ballot Measure, having the Ordinance in place beforehand will streamline the appointment process if the Ballot Measure is approved.
If the City Council directs staff to pursue a Ballot Measure, staff will file the Resolution with the San Diego County Board of Supervisors and Registrar of Voters and request that the measure be added to the Tuesday, November 8, 2022, Statewide Gubernatorial Municipal Election ballot.
In addition, staff will publish notice of the measure on the City’s website and in the following newspapers of general circulation authorized to publish legal notices:
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The Star News
El Latino
The Filipino Press
The Epoch Times
Nguoi Viet Today
FINANCIAL STATEMENT:
Fiscal Impact, the elimination of the position would save the City $30,836 a year. The base salary is $11,028 annually, along with benefits, training, memberships and supplies. No additional employee would be hired if the ballot measure is passed, the work would continue to be completed by the current staff.
The Registrar of Voters has estimated the cost to include the Ballot Measure in the November 2022 Election to be $25,000 - $45,000. This ballot measure was not a planned expenditure in the fiscal year 2022-2023 budget. If a ballot measure is pursued, staff recommends that the City Council approve an appropriation of up to $ 55,000 from the General Fund to cover the Registrar of Voters cost and required legal publications and translations.
If the Ballot Measure is successful, the cost savings of the City Clerk position, including salary and benefits is approximately $31,000 per year.
ENVIRONMENTAL REVIEW:
This action is not subject to review under the California Environmental Quality Act (CEQA)
PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE: Amending Sections of National City Municipal Code rela ting to the City Clerk’s position, if it becomes Appointive following the Certification of Election Results.
EXHIBITS:
Attachment 1 - Resolution Calling for the Holding of a General Municipal Election for the purpose of submission of a ballot measure to the voters to make the Office of the City Clerk Appointive including Exhibit A: Proposed Ballot Measure Attachment 2 - Proposed Ordinance: Amending Sections of National City Municipal Code relating to the City Clerk’s position, if it becomes Appointive fo llowing the Certification of Election Results
Attachment 3 - Proposed Ordinance Amending National City Municipal Code Section 2.73 relating to the City Clerk’s and City Treasurer’s position, if both become Appointive following the Certification of Election Results.
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ATTACHMENT 1
RESOLUTION NO. 2022 –
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
PROVIDING NOTICE OF AND CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL
ELECTION, FOR THE PURPOSE OF SUBMISSION OF A BALLOT MEASURE TO THE
VOTERS TO MAKE THE OFFICE OF THE CITY CLERK APPOINTIVE, REQUESTING THE
SAN DIEGO COUNTY BOARD OF SUPERVISORS TO CONSOLIDATE THE MUNICIPAL
ELECTION WITH THE STATEWIDE GUBERNATORIAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 8, 2022, AS REQUIRED BY THE PROVISIONS OF THE LAWS OF
THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES
WHEREAS, under the provisions of the laws relating to General Law Cities in the State of California, a General Municipal Election shall be held on Tuesday, November 8, 2022, for the purpose of submission of a ballot measure to the voters to make the Office of the City Clerk Appointive.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. That pursuant to the requirements of the Laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of National City , California, on Tuesday, November 8, 2022, a General Municipal Election for the Election of Municipal Officers for the full term of four years; and
Section 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question:
Shall the Office of City Clerk be
Appointive?
Yes
No
Section 3. The City Council hereby proposes the ordinance attached as Exhibit A to make the Office of City Clerk appointive.
Section 4. That the vote requirement for the measure to pass is a majority (50% +1) of the votes cast.
Section 5. That the ballots to be used at the election shall be in form and content as required by law.
Section 6. That the City Clerk is authorized, instructed and directed to coordinate with the County of San Diego Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. 6 241 of 384
Section 7. Pursuant to Elections Code § 9280, the City Council hereby directs the City Clerk to transmit a copy of the ordinance as set forth herein to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk within ten days (10) following the adoption of this Resolution.
Section 8. Pursuant to Elections Code §§ 9282(b) and 9285(b), the City Council authorizes the Mayor or the Mayor’s designee to draft the arguments in favor of the measure and any related rebuttals.
Section 9. The City of National City recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.
Section 10. That the polls for the election shall be open at seven o’clock (7:00) a.m. of the day of the election and shall remain open continuously from that time until eight o’clock (8:00) p.m. of the same day when the polls shall be closed, pursuant to Elections Code § 10242, except as provided in § 14401 of the Elections Code of the State of California.
Section 11. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.
Section 12. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.
Section 13. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
Section 14. That the Deputy City Clerk is directed to file a certified copy of this resolution and its attachments with the Board of Supervisors and the Registrar of Voters in the time and manner required by law.
Section 15. Pursuant to Elections Code § 9295, this measure will be available for public examination for no fewer than ten (10) days prior to being submitted for printing in the voter information guide. The City Clerk shall post a notice in the City Clerk’s office of the specific dates that the examination period will run.
PASSED, and ADOPTED this 7th day of June, 2022.
________________________________
Alejandra Sotelo-Solis, Mayor
ATTEST:
______________________________
Luz Molina, City Clerk
APPROVED AS TO FORM:
______________________________
Charles E. Bell Jr., City Attorney
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Exhibit A
Shall the Office of City Clerk be
Appointive?
Yes
No
Full Text of Ballot Measure
AN ORDINANCE OF THE QUALIFIED ELECTORS OF THE CITY OF NATIONAL CITY,
CALIFORNIA,
MAKING THE OFFICE OF CITY CLERK APPOINTIVE
The people of the City of National City, California, do ordain as follows:
SECTION 1. The Office of the City Clerk shall be appointive as authorized by California Government Code Section 36508.
SECTION 2. This Ordinance shall take effect as provided in California Elections Code Section 9217.
SECTION 3. The City Clerk’s Office shall publish this ordinance according to law.
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ATTACHMENT 2
ORDINANCE NO. 2022-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
AMENDING VARIOUS SECTIONS OF AND ADDING A SECTION TO THE NATIONAL CITY
MUNICIPAL CODE REGARDING THE POSITION OF CITY CLERK TO TAKE EFFECT ONLY IF THE VOTERS AT THE MUNICIPAL ELECTION ON NOVEMBER 8, 2022 APPROVE
MAKING THE OFFICE OF CITY CLERK APPOINTIVE
WHEREAS, the City Council has placed a measure on the November 8, 2022 , Statewide Gubernatorial Municipal Election ballot asking the voters to make the Office of City Clerk Appointive; and
WHEREAS, if a majority of the voters approve making the Office of City Clerk Appointive, certain sections of the National City Municipal Code will no longer apply or will require amendment; and
WHEREAS, as permitted by California Government Code Sections 34856 and 36510, the City Council wishes to vest the City Manager with the authority to appoint the City Clerk if the voters approve making the Office of City Clerk Appointive; and
WHEREAS, the City Council wishes to have the necessary amendments to the Municipal Code adopted and ready to become immediately effective should the voters approve making the Office of City Clerk Appointive so there is no delay in implementing the will of the voters.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1: The above recitations are true and correct.
Section 2: National City Municipal Code Section 2.73 Term Limits for Elected City Offices. Delete references to elected official City Clerk.
Section 3: Add Section 2.03 City Clerk
2.03 – CITY CLERK
2.03.010 Purpose and Authority
The City Clerk is established as one of the statutory officers specified by State Law for General Law Cities. The City Clerk shall be appointed by the City Manager solely on the basis of executive and administrative qualifications, and shall hold office during the pleasure of the City Manager.
A. In accordance with California Government Code Sections 34856 and 36510, authority is given to the City Manager to appoint and supervise the City Clerk.
B. The City Clerk shall have all of the responsibilities, duties and functions as specified by State Law and this Code, in addition to any other duties or functions as the City Manager may, from time to time, prescribe.
Section 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity 9 244 of 384
or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council of the City of National City hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, subdivision, paragraph, sentences, clauses, or phrases be declared unconstitutional or invalid or ineffective.
Section 5. Conflict. All Ordinances and parts of Ordinance in conflict herewith are repealed insofar as such conflict may exist.
Section 6 . Effective Date. If the ballot measure to make the Office of City Clerk Appointive is approved by the voters in the Municipal Election on November 8, 2022, this Ordinance shall become effective immediately upon the effective date of the ballot measure, as provided in California Elections Code Section 9217. If the ballot measure is not approved by the voters, this Ordinance shall be automatically repealed and of no further force and effect. The City Clerk’s Office shall certify the adoption of this Ordinance and cause the full text of the Ordinance or a summary of the Ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of National City within fifteen days after its adoption.
INTRODUCED by the City Council on June 7, 2022.
PASSED and ADOPTED this ____ day of December, 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Charles E. Bell Jr.
City Attorney
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REDLINE VERSION
Chapter 2.73 - TERM LIMITS FOR ELECTED CITY OFFICES
2.73.010 - Limits on consecutive terms of office for other elected officials in the city.
No person sh all be eligible for nomination and election to serve in the offices of members of the city council, city clerk and city treasurer for more than three consecutive terms in the same elected office, and no person who has held the office of member of the city council, city clerk or city treasurer for three consecutive terms may again seek nomination and election to that same elected office until one election cycle following the termination of the third term in that same elected office has elapsed. This limitati on on terms shall not apply to any unexpired term to which a person is elected or appointed to fill a vacancy in the offices of members of the city council, city clerk or city treasurer, if the remainder of the term is less than one -half of the full term of office.
This section shall apply prospectively to full terms of office commencing after the June 5, 2018 statewide primary election.
(Ord. No. 2018-2450A, § 3, 7-17-2018)
2.73.020 - Lifetime limits terms of office for all elected officials in the city.
A. No person shall be eligible for nomination and election to serve in any elective city office, which shall include the offices of mayor, members of the city council, city clerk and city treasurer, for more than six terms in all elected offices combined. T his limitation on terms shall not apply to any unexpired term to which a person is elected or appointed to fill a vacancy in any elective city office, if the remainder of the term is less than one -half of the full term of office.
B. This section shall appl y prospectively to full terms of office commencing after the June 5, 2018 statewide primary election.
(Ord. No. 2018-2450A, § 3, 7-17-2018)
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Chapter 2.03 – CITY CLERK
2.03.010 Purpose and Authority
The City Clerk is established as one of the statutory officers specified by State Law for General Law Cities. The City Clerk shall be appointed by the City Manager solely on the basis of executive and administrative qualifications, and shall hold office during the pleasure of the City Manager.
A. In accordance with California Government Code Sections 34856 and 36510, authority is given to the City Manager to appoint and supervise the City Clerk.
B. The City Clerk shall have all of the responsibilities, duties and functions as specified by State Law and this Code, in addition to any other duties or functions as the City Manager may, from time to time, prescribe.
Chapter 2.73 - TERM LIMITS FOR ELECTED CITY OFFICES
2.73.010 - Limits on consecutive terms of office for other elected officials in the city.
No pers on shall be eligible for nomination and election to serve in the offices of members of the city council and city treasurer for more than three consecutive terms in the same elected office, and no person who has held the office of member of the city council , or city treasurer for three consecutive terms may again seek nomination and election to that same elected office until one election cycle following the termination of the third term in that same elected office has elapsed. This limitation on terms shall not apply to any unexpired term to which a person is elected or appointed to fill a vacancy in the offices of members of the city council or city treasurer, if the remainder of the term is less than one -half of the full term of office.
This section shall a pply prospectively to full terms of office commencing after the June 5, 2018 statewide primary election.
(Ord. No. 2018-2450A, § 3, 7-17-2018)
2.73.020 - Lifetime limits terms of office for all elected officials in the city.
A. No person shall be eligible for nomination and election to serve in any elective city office, which shall include the offices of mayor, members of the city council and city treasurer, for more than six terms in all elected offices combined. This limitation on terms shall not apply to any unexpired term to which a person is elected or appointed to fill a vacancy in any elective city office, if the remainder of the term is less than one -half of the full term of office.
B. This section shall apply prospectively to full terms of office co mmencing after the June 5, 2018 statewide primary election.
(Ord. No. 2018-2450A, § 3, 7-17-2018)
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ATTACHMENT 3
ORDINANCE NO. 2022-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING SECTION 2.73 OF THE NATIONAL CITY MUNICIPAL CODE REGARDING THE
POSITIONS OF CITY CLERK AND CITY TREASURER TO TAKE EFFECT ONLY IF THE VOTERS AT THE MUNICIPAL ELECTION ON NOVEMBER 8, 2022 APPROVE BOTH
MEASURES
WHEREAS, the City Council has placed measures on the November 8, 2022, Statewide Gubernatorial Municipal Election ballot asking the voters to make the Offices of City Clerk and City Treasurer appointive; and
WHEREAS, if a majority of the voters approve making the Offices of City Clerk and City Treasurer appointive, certain sections of the National City Municipal Code will no longer apply or will require amendment; and
WHEREAS, if both City Measures placed on the ballot making the City Clerk and City Treasurer positions appointive are passed by a majority of the voters the National City Municipal Code Section 2.73 will delete references to both City Clerk and City Treasurer.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1: The above recitations are true and correct.
Section 2: Section 2 of Ordinance No. 2022- ___ shall no longer take effect.
Section 3: Section 2 of Ordinance No. 2022- ___ shall no longer take effect.
Section 4: National City Municipal Code Section 2.73 Term Limits for Elected City Offices is amended to delete references to elected official City Clerk and City Treasurer, as reflected in Exhibit ____.
Section 5. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council of the City of National City hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, subdivision, paragraph, sentences, clauses, or phrases be declared unconstitutional or invalid or ineffective.
Section 6. Conflict. All Ordinances and parts of Ordinance in conflict herewith are repealed insofar as such conflict may exist.
Section 7. Effective Date. This ordinance shall only take effect if the ballot measures to make the Office of City Clerk and the Office of City Treasurer appointive are approved by the voters in the Municipal Election on November 8, 2022. If either ballot measure is not approved by the 13 248 of 384
voters, this Ordinance shall be automatically repealed and of no further force and effect. The City Clerk’s Office shall certify the adoption of this Ordinance and cause the full text of the Ordinance or a summary of the Ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of National City within fifteen days after its adoption.
INTRODUCED by the City Council on June 7, 2022.
PASSED and ADOPTED this ____ day of December, 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Charles E. Bell Jr.
City Attorney
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The following page(s) contain the backup material for Agenda Item: Adoption of Resolutions Ordering the Submission of a Ballot Measure to the qualified voters of the City of National City at the Statewide Gubernatorial Municipal Election to be held on November 8, 2022, to make the Office of City Treasurer Appointive. (City Clerk) Please scroll down to view the backup material.
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CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
One-time election costs of $25,000, which have been included in the FY23 budget appropriations. If approved by voters, annual saving of approximately $31,000 to the General Fund.
ITEM TITLE:
PREPARED BY: DEPARTMENT:
PHONE:
EXPLANATION:
APPROVED BY:
AGENDA ITEM NO. MEETING DATE:
ENVIRONMENTAL REVIEW:
This action is not subject to review under the California Environmental Quality Act (CEQA).
FINANCIAL STATEMENT: APPROVED: Finance
ORDINANCE: INTRODUCTION:
ACCOUNT NO.
STAFF RECOMMENDATION:
ATTACHMENTS:
Shelley Chapel
__________________
________________
June 7, 2022
Adoption of Resolution s Ordering the Submission of a Ballot Measure to the qualified voters of the City of National City at the Statewide Gubernatorial Municipal Election to be held on November 8, 2022, to make the Office of City Treasurer Appointive.
City Clerk’s Office
Per City Council direction at the May 17, 2022 City Council Meeting, the City Manager was to draft a Resolution to place a measure on the November 8, 2022, ballot regarding the Office of the City Treasurer as an appointed position. Therefore, placing the question on the Gubernatorial Municipal Election Ballot wherein the voter s shall decide, “Shall the Office of the City Treasurer be Appointive?” “Yes” or “No”?
See the report for additional information including additional staff recommendations.
Shelley Chapel, MMC, Deputy City Clerk
Attachment 1 - Resolution Calling for the Holding of a General Municipal Election Attachment 2 - Proposed Ordinance: Amending Sections of National City Municipal Code (NCMC) relating City Treasurer’s position, if successful Election Attachment 3 – Proposed Ordinance Amending National City Municipal Code Section 2.73 relating to the City Clerk’s and City Treasurer’s posit ion if both become Appointive following the Certification of Election Results.
FINAL ADOPTION:
APPROVED: ________________ MIS
Staff recommends that the City Council adopt resolutions providing the submission of a Ballot Measure to the Voters to make the Office of the City Treasurer Appointive, Directing the Preparation of an Impartial Analysis and Establishing Procedures for Ballot Arguments. Introduce an Ordinance Amending National City Municipal Code to be adopted only following a successful Election.
(619) 336-4240
x
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AGENDA REPORT
Department: City Manager's Office
Prepared by: Shelley Chapel, MMC, Deputy City Clerk
Meeting Date: June 7, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
Adoption of Resolutions Ordering the Submission of a Ballot Measure to the qualified voters of the City of National City at the Statewide Gubernatorial Municipal Election to be held on November 8, 2022, to make the Office of City Treasurer Appointive.
RECOMMENDATION:
On May 17, 2022 per City Council direction to staff was for the City Manager to draft a Resolution to place a measure on the November 8, 2022, ballot regarding the Office of the City Treasurer as an appointed position. Therefore, placing the question on the Statewide Gubernatorial Municipal Election Ballot wherein the voters decide, “Shall the Office of City Treasurer be Appointive?” “Yes” or “No”.
If the City Council chooses to direct staff to pursue a ballot measure to make the City Treasurer an appointed position, the ballot question and the full text of the proposed ballot measure are included in Exhibit A to Attachment 1.
Staff seeks City Council direction on the adoption of resolutions providing the submission of a Ballot Measure to the Voters to make the Office of the City Treasurer Appointive, Directing the Preparation of an Impartial Analysis and Establishing Procedures for Ballot Arguments, and Introduce an Ordinance Amending NCMC to be adopted only following a successful Election.
Attachment 1 - Resolution Calling for the Holding of a General Municipal Election for the purpose of submission of a ballot measure to the voters to make the Office of the City Treasurer Appointive including Exhibit A: Proposed Ballot Measure Attachment 2 Proposed Ordinance: Amending Sections of National City Municipal Code relating to the City Treasures position, if it becomes Appointive following the Certification of Election Results
Attachment 3 - Proposed Ordinance: Amending National City Municipal Code Section 2.73 relating to the City Clerk’s and City Treasurer’s position, if both become Appointive following the Certification of Election Results.
BOARD/COMMISSION PRIOR ACTION: None.
STATEMENT ON SUBJECT:
History of the Elected City Treasurer Position and Supporting Staff Since incorporation in September 17, 1887, the City Treasurer position has been an elected position.
In General Law Cities, the City Treasurer is one of five positions listed that are required in a City by Government Code Section 36501:
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1. City Council of at least five members
2. City Clerk
3. City Treasurer
4. Chief of Police
5. Fire Chief
Under State Law, there are three qualifications for the position of an elected City Treasurer:
A resident of the City
Registered to Vote in the City at the time nomination papers are issued At least 18 years old
The duties, responsibilities, and requirements of a City Treasurer have changed significantly over the past four (4) decades including Proposition 13 ( 1978), The Public Records Act (1968), Proposition 218 ( 1996), new Governmental Accounting Standards Board (GASB) statements, and expanded state and federal investment and reporting regulations. The added complexity has required the position of City Treasurer to be more responsible and therefore, more liable t o the City for duties conducted during the regular course of business.
City Treasurer Duties and Responsibilities
The basic, historic duties of the City Treasurer are set forth in California Government Code 41001-41007.
These duties include:
Governing Deposit and Securing of Public Funds and the Handling of Trust Funds Use a System of Accounting and Auditing that adheres to generally accepted accounting policies.
Report to the City Clerk a written report and accounting of all receipts, disbursements, and fund balances, at least once per month, and file a copy with the Legislative body. The City Treasurer performs the collection of City taxes and license fees.
Due to the technical and time consuming nature of the City Treasurer duties listed in California Government Code 41001-41007, National City staff has been completing these responsibilities.
In National City, the Elected City Treasurer serves an oversight role for the City’s financial activity.
As the legal responsibilities and professional expertise required to fulfill the duties of the position have continued to increase, elected City Treasurers are being replaced by appointed professional staff with appropriate training and experience who typically perform both City Treasurer and other City staff finance duties.
Area Cities Comparison
Out of the eighteen (18) San Diego County Cities, thirteen ( 13) have an appointed City Treasurer, with the majority appointed by the City Manager and fulfilling the joint role of Finance Director and City Treasurer. The five (5) Cities currently retaining elected City Treasurer positions are Oceanside, Escondido, La Mesa, Carlsbad and National City. The percentage of Elected City Treasurer has continued to decline as the trend has been to move to an appointed position.
Converting the Role to an Appointed Position
Government Code Section 36509 provides that the City Council may place the question of whether the City Treasurer should be an appointed position on the ballot. As a General Law City under the Council-Manager form of government, the City Council would confer the City 2 253 of 384
Manager with authority to appoint the City Treasurer position similar to other employees. If the measure is successful, an Ordinance would provide the City Manager with the appointing authority and making related amendments to the City of National City Municipal Code would take effect upon a successful election certification.
The current term of the City Treasurer position ends in November 2024. City Treasurer Beauchamp would remain in that position until the end of term, unless he chose to resign the seat prior to the end of the term.
Considerations of an Appointive Position
The City Treasurer’s role has become increasingly technical, demanding certain skills, experience and reliability. These responsibilities are unlike those of other elected positions, whose primary responsibility is policy making. Converting the elected role to an appointed position allows cities to set qualification criteria for the appointed position, requiring applicants to demonstrate the requisite skills.
City staff is responsible for carrying out the details of the City Treasurer’s duties, while reporting to the City Manager. The current structure leaves an elected City Treasurer with little authority over the completion of the tasks of their office, while opening up the potential to place staff in a thorny position if the City Manager and elected City Treasurer are providing conflicting direction.
Ballot Measure Process
If the City Council chooses to direct staff to pursue a ballot measure to make the City Treasurer an appointed position, the ballot question and the full text of the proposed ballot measure are included in Exhibit A to Attachment 1.
The State Elections states the City Council can designa te members of the City Council to write the ballot argument in favor and another member write against the measure if they choose.
Since up to five (5) people may be signatories to the argument, the City Council may also designate that the argument against can include other signatories.
If City Council designates themselves to write the in favor and against arguments, and multiple people submit arguments, the only ones to be published are the City Councils’ For and/or Against Arguments. If Councilmembers on either side fail to submit arguments on time, then other submittals would be published based on the statutory priority list. Arguments in Favor and/or Against a Measure may be no more than 300 words.
Through the Ordinance Calling the Election, the City Council is allowing for Rebuttal Arguments, which would be prepared by the original authors unless they authorize in writing another person or persons to prepare, submit, or sign the rebuttal arguments (Elections Code Section 9285).
Rebuttal Arguments are limited to a maximum of 250 words.
The Office of the City Clerk is authorized to set the time for submittals of Arguments in Favor and/or Against the Measure and Rebuttals. The Office of the City Clerk has declared Friday, July 1, 2022 by noon as the deadline to submit Arguments in Favor of and/or Against the Measure to the City Clerk’s Office. Additionally, all Rebuttal Arguments must be summited by Monday, July 11, 2022 by noon to the City Clerk’s Office.
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Ballot Measure Timeline
DUE DATE REQUIREMENT
Wednesday, June 22
(noon)
City Attorney’s Impartial Analysis is due to the City Clerk’s Office not to exceed 500 words in length.
Friday, July 1 (noon) Public Examination Period for Impartial Analysis Wednesday, June 22 –
Friday, July 1 (noon)
Arguments in Favor of/or Against the Ballot Measure are due to the City Clerk’s Office not to exceed 300 words in length.
Wednesday, July 6 Ballot text due to the Registrar of Voters Monday, July 11 (noon) Public Examination Period for Arguments Monday, July 11 (noon) Rebuttal Arguments are Due to the City Clerk’s Office not to exceed 250 words in length
Friday, July 21 (noon) Public Examination Period for Rebuttal Arguments
Staff recommends that, if the City Council directs staff to pursue a Ballot Measure and the voters approve it, the City Council vest the City Manager with the appointment authority for the position. To accomplish this, the City Council would need to introduce and subsequently adopt the Ordinance proposed in Attachment 2. Although the Ordinance would not go into effect unless the voters approved the Ballot Measure, having the Ordinance in place beforehand will streamline the appointment process if the Ballot Measure is approved.
If the City Council directs staff to pursue a Ballot Measure, staff will file the Resolution with the San Diego County Board of Supervisors and Registrar of Voters and request that the measure be added to the Tuesday, November 8, 2022, Statewide Gubernatorial Municipal Election ballot.
In addition, st aff will publish notice of the measure on the City’s website and in the following newspapers of general circulation authorized to publish legal notices:
The Star News
El Latino
The Filipino Press
The Epoch Times
Nguoi Viet Today
FINANCIAL STATEMENT:
Fiscal Impact, the elimination of the position would save the City $23, 620 a year. The position costs include base salary, along with benefits, training, memberships and supplies. No additional employee would be hired if the ballot measure is passed, the work would continue to be completed by the current staff.
The Registrar of Voters has estimated the cost to include the Ballot Measure in the November 2022 Election to be $25,000 - $45,000. This ballot measure was not a planned expenditure in the fiscal year 2022-2023 budget. If a ballot measure is pursued, staff recommends that the City Council approve an appropriation of up to $55,000 from the General Fund to cover the Registrar of Voters cost and required legal publications and translations.
If the Ballot Measure is successful, the cost savings of the City Treasurer position, including salary and benefits is approximately $24,000 per year.
ENVIRONMENTAL REVIEW:
This action is not subject to review under the California Environmental Quality Act (CEQA)
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PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE:
Amending Sections of National City Municipal Code relating to the City Treasurer’s position, if it becomes Appointive following the Certification of Election Results.
EXHIBITS:
Attachment 1 - Resolution Calling for the Holding of a General Municipal Election for the purpose of submission of a ballot measure to the voters to make the Office of the City Treasurer Appointive including Exhibit A: Proposed Ballot Measure Attachment 2 - Proposed Ordinance: Amending Sections of National City Municipal Code relating to the City Treasurer ’s position, if it becomes Appointive following the Certification of Election Results
Attachment 3 - Proposed Ordinance Amending National City Municipal Code Section 2.73 relating to the City Clerk’s and City Treasurer’s position, if both become Appointive following the Certification of Election Results.
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ATTACHMENT 1
RESOLUTION NO. 2022 –
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
PROVIDING NOTICE OF AND CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL
ELECTION, FOR THE PURPOSE OF SUBMISSION OF A BALLOT MEASURE TO THE
VOTERS TO MAKE THE OFFICE OF THE CITY TREASURER APPOINTIVE, REQUESTING
THE SAN DIEGO COUNTY BOARD OF SUPERVISORS TO CONSOLIDATE THE
MUNICIPAL ELECTION WITH THE STATEWIDE GUBERNATORIAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 8, 2022, AS REQUIRED BY THE PROVISIONS OF THE LAWS
OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES
WHEREAS, under the provisions of the laws relating to General Law Cities in the State of California, a General Municipal Election shall be held on Tuesday, November 8, 2022, for the purpose of submission of a ballot measure to the voters to make the Office of the City Treasurer Appointive.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. That pursuant to the requirements of the Laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of National City , California, on Tuesday, November 8, 2022, a General Municipal Election for the Election of Municipal Officers for the full term of four years; and
Section 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question:
Shall the Office of City Treasurer
be Appointive?
Yes
No
Section 3. The City Council hereby proposes the ordinance attached as Exhibit A to make the Office of the City Treasurer appointive.
Section 4. That the vote requirement for the measure to pass is a majority (50% +1) of the votes cast.
Section 5. That the ballots to be used at the election shall be in form and content as required by law.
Section 6. That the City Clerk is authorized, instructed and directed to coordinate with the County of San Diego Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.
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Section 7. Pursuant to Elections Code § 9280, the City Council hereby directs the City Clerk to transmit a copy of the ordinance as set forth herein to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk within ten days (10) following the adoption of this Resolution.
Section 8. Pursuant to Elections Code §§ 9282(b) and 9285(b), the City Council authorizes the Mayor or the Mayor’s designee to draft the arguments in favor of the measure and any related rebuttals.
Section 9. The City of National City recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.
Section 10. That the polls for the election shall be open at seven o’clock (7:00) a.m. of the day of the election and shall remain open continuously from that time until eight o’clock (8:00) p.m. of the same day when the polls shall be closed, pursuant to Elections Code § 10242, except as provided in § 14401 of the Elections Code of the State of California.
Section 11. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.
Section 12. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.
Section 13. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
Section 14. That the Deputy City Clerk is directed to file a certified copy of this resolution and its attachments with the Board of Supervisors and the Registrar of Voters in the time and manner required by law.
PASSED, and ADOPTED this 7th day of June, 2022.
________________________________
Alejandra Sotelo-Solis, Mayor
ATTEST:
______________________________
Shelley Chapel, MMC, Deputy City Clerk
APPROVED AS TO FORM:
______________________________
Charles E. Bell Jr., City Attorney
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Exhibit A
Shall the Office of City Treasurer
be Appointive?
Yes
No
Full Text of Ballot Measure
AN INITIATIVE ORDINANCE OF THE CITY OF NATIONAL CITY, CALIFORNIA,
MAKING THE OFFICE OF CITY TREASURER APPOINTIVE
The people of the City of National City, California, do ordain as follows:
SECTION 1. The Office of the City Treasurer shall be appointive as authorized by California Government Code Section 36508.
SECTION 2. This Ordinance shall take effect as provided in California Elections Code Section 9217.
SECTION 3. The City Clerk’s Office shall publish this ordinance according to law.
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ATTACHMENT 2
ORDINANCE NO. 2022-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
AMENDING VARIOUS SECTIONS OF AND ADDING A SECTION TO THE NATIONAL CITY
MUNICIPAL CODE REGARDING THE POSITION OF CITY TREASURER TO TAKE EFFECT ONLY IF THE VOTERS AT THE MUNICIPAL ELECTION ON NOVEMBER 8, 2022 APPROVE
MAKING THE OFFICE OF CITY TREASURER APPOINTIVE
WHEREAS, the City Council has placed a measure on the November 8, 2022 , Statewide Gubernatorial Municipal Election ballot asking the voters to make the Office of City Treasurer Appointive; and
WHEREAS, if a majority of the voters approve making the Office of City Treasurer Appointive, certain sections of the National City Municipal Code will no longer apply or will require amendment; and
WHEREAS, as permitted by California Government Code Sections 34856 and 36510, the City Council wishes to vest the City Manager with the authority to appoint the City Treasurer if the voters approve making the Office of City Treasurer Appointive; and
WHEREAS, the City Council wishes to have the necessary amendments to the Municipal Code adopted and ready to become immediately effective should the voters approve making the Office of City Treasurer Appointive so there is no delay in implementing the will of the voters.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1: The above recitations are true and correct.
Section 2: National City Municipal Code Section 2.73 Term Limits for Elected City Offices. Delete references to elected official City Treasurer
Section 3: Add Section 2.05 City Treasurer
2.05 – CITY TREASURER
2.05.010 Purpose and Authority
The City Treasurer is established as one of the statutory officers specified by State Law for General Law Cities. The City Treasurer shall be appointed by the City Manager solely on the basis of executive and administrative qualifications, and shall hold office during the pleasure of the City Manager.
A. In accordance with California Government Code Sections 34856 and 36510, authority is given to the City Manager to appoint and supervise the City Treasurer.
B. The City Treasurer shall have all of the responsibilities, duties and functions as specified by State Law and this Code, in addition to any other duties or functions as the City Manager may, from time to time, prescribe.
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Section 4. Severability . If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council of the City of National City hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, subdivision, paragraph, sentences, clauses, or phrases be declared unconstitutional or invalid or ineffective.
Section 5. Conflict. All Ordinances and parts of Ordinance in conflict herewith are repealed insofar as such conflict may exist.
Section 6. Effective Date. If the ballot measure to make the Office of City Treasurer Appointive is approved by the voters in the Municipal Election on November 8, 2022, this Ordinance shall become effective immediately upon the effective date of the ballot measure, as provided in California Elections Code Section 9217. If the ballot measure is not approved by the voters, this Ordinance shall be automatically repealed and of no further force and effect. The City Clerk’s Office shall certify the adoption of this Ordinance and cause the full text of the Ordinance or a summary of the Ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of National City within fifteen days after its adoption.
INTRODUCED by the City Council on June 7, 2022.
PASSED and ADOPTED this ____ day of December 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Shelley Chapel, MMC, Deputy City Clerk
APPROVED AS TO FORM:
Charles E. Bell Jr.
City Attorney
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REDLINE VERSION
Chapter 2.73 - TERM LIMITS FOR ELECTED CITY OFFICES
2.73.010 - Limits on consecutive terms of office for other elected officials in the city.
No person shall be eligible for nomination and election to serve in the offices of members of the city council, city clerk, and city treasurer for more than three consecutive terms in the same elected office, and no person who has held the office of member of the city council, city clerk, or city treasurer for three consecutive terms may again seek nomination and electio n to that same elected office until one election cycle following the termination of the third term in that same elected office has e lapsed. This limitation on terms shall not apply to any unexpired term to which a person is elected or appointed to fill a vacancy in the offices of members of the city council, city clerk, or city treasurer, if the remainder of the term is less than one -half of the full term of office.
This section shall apply prospectively to full terms of office commencing after the June 5, 2018 statewide primary election.
(Ord. No. 2018-2450A, § 3, 7-17-2018)
2.73.020 - Lifetime limits terms of office for all elected officials in the city.
A. No person shall be eligible for nomination and election to serve in any elective city office, which shall include the offices of mayor, members of the city council, city clerk, and city treasurer, for more than six terms in all elec ted offices combined. This limitation on terms shall not apply to any unexpired term to which a person is elected or appointed to fill a vacancy in any elective city office, if the remainder of the term is less than one -half of the full term of office.
B. This section shall apply prospectively to full terms of office commencing after the June 5, 2018 statewide primary election.
(Ord. No. 2018-2450A, § 3, 7-17-2018)
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Chapter 2.05 – CITY TREASURER
2.05.010 Purpose and Authority
The City Treasurer is established as one of the statutory officers specified by State Law for General Law Cities. The City Treasurer shall be appointed by the City Manager solely on the basis of executive and administrative qualifications, and shall hold office during the pleasure of the City Manager.
A. In accordance with California Government Code Sections 34856 and 36510, authority is given to the City Manager to appoint and supervise the City Treasurer.
B. The City Treasurer shall have all of the responsibilities, duties and functions as specified by State Law and this Code, in addition to any other duties or functions as the City Manager may, from time to time, prescribe.
Chapter 2.73 - TERM LIMITS FOR ELECTED CITY OFFICES
2.73.010 - Limits on consecutive terms of office for other elected officials in the city.
No person shall be eligible for nomination and election to serve in the offices of members of the city council, or city clerk for more than three consecutive terms in the same elected office, and no person w ho has held the office of member of the city council, or city clerk for three consecutive terms may again seek nomination and election to that same elected office until one election cycle following the termination of the third term in that same elected off ice has elapsed. This limitation on terms shall not apply to any unexpired term to which a person is elected or appointed to fill a vacancy in the offices of members of the city council, or city treasurer, if the remainder of the term is less than one -half of the full term of office.
This section shall apply prospectively to full terms of office commencing after the June 5, 2018 statewide primary election.
(Ord. No. 2018-2450A, § 3, 7-17-2018)
2.73.020 - Lifetime limits terms of office for all elected officials in the city.
A. No person shall be eligible for nomination and election to serve in any elective city office, which shall include the offices of mayor, members of the city council, and city clerk, for more than six terms in all elected offices combine d. This limitation on terms shall not apply to any unexpired term to which a person is elected or appointed to fill a vacancy in any elective city office, if the remainder of the term is less than one -half of the full term of office.
B. This section shall apply prospectively to full terms of office commencing after the June 5, 2018 statewide primary election.
(Ord. No. 2018-2450A, § 3, 7-17-2018)
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ATTACHMENT 3
ORDINANCE NO. 2022-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING SECTION 2.73 OF THE NATIONAL CITY MUNICIPAL CODE REGARDING THE
POSITIONS OF CITY CLERK AND CITY TREASURER TO TAKE EFFECT ONLY IF THE VOTERS AT THE MUNICIPAL ELECTION ON NOVEMBER 8, 2022 APPROVE BOTH
MEASURES
WHEREAS, the City Council has placed measures on the November 8, 2022, Statewide Gubernatorial Municipal Election ballot asking the voters to make the Offices of City Clerk and City Treasurer appointive; and
WHEREAS, if a majority of the voters approve making the Offices of City Clerk and City Treasurer appointive, certain sections of the National City Municipal Code will no longer apply or will require amendment; and
WHEREAS, if both City Measures placed on the ballot making the City Clerk and City Treasurer positions appointive are passed by a majority of the voters the National City Municipal Code Section 2.73 will delete references to both City Clerk and City Treasurer.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1: The above recitations are true and correct.
Section 2: Section 2 of Ordinance No. 2022-___ shall no longer take effect.
Section 3: Section 2 of Ordinance No. 2022- ___ shall no longer take effect.
Section 4: National City Municipal Code Section 2.73 Term Limits for Elected City Offices is amended to delete references to elected official City Clerk and City Treasurer, as reflected in Exhibit ____.
Section 5. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council of the City of National City hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, subdivision, paragraph, sentences, clauses, or phrases be declared unconstitutional or invalid or ineffective.
Section 6. Conflict. All Ordinances and parts of Ordinance in conflict herewith are repealed insofar as such conflict may exist.
Section 7. Effective Date. This ordinance shall only take effect if the ballot measures to make the Office of City Clerk and the Office of City Treasurer appointive are approved by the voters in the Municipal Election on November 8, 2022. If either ballot measure is not approved by the voters, this Ordinance shall be automatically repealed and of no further 13 264 of 384
force and effect. The City Clerk’s Office shall certify the adoption of this Ordinance and cause the full text of the Ordinance or a summary of the Ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of National City within fifteen days after its adoption.
INTRODUCED by the City Council on June 7, 2022.
PASSED and ADOPTED this ____ day of December, 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Charles E. Bell Jr.
City Attorney
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The following page(s) contain the backup material for Agenda Item: Resolution of the Community Development Commission-Housing Authority of the City of National City, California to Amend and Restate the Disposition and Development Agreement (DDA) with San Diego Habitat for Humanity (Habitat) in its entirety the Prior Agreement and further removes San Diego Community Land Trust as a party to this Agreement and terminates its respective obligations under the Prior Agreement by removing the San Diego Land Trust for the development of six affordable homeownership units at 405-419 West 18th Street in National City, and authorizing the Executive Director of the CDC-HA to execute the DDA. (Housing Authority)
Please scroll down to view the backup material.
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CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION-HOUSING AUTHORITY
COUNCIL AGENDA STATEMENT
ITEM TITLE:
PREPARED BY: DEPARTMENT:
PHONE:
EXPLANATION: APPROVED BY:
AGENDA ITEM NO. MEETING DATE:
ENVIRONMENTAL REVIEW:
FINANCIAL STATEMENT: APPROVED: Finance
ORDINANCE: INTRODUCTION:
ACCOUNT NO.
STAFF RECOMMENDATION:
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
___________________
________________
June 7, 2022
Resolution of the Community Development Commission-Housing Authority of the City of National City, California authorizing the Executive Director to execute an amended and restated Disposition and Development Agreement (“DDA”) with San Diego Habitat for Humanity that removes the Community Land Trust model and the San Diego Community Land Trust as a party to the DDA in the development of six affordable homeownership units at 405-419 West 18th Street in National City.
Housing Authority
Refer to Attachment No. 1 Explanation.
Angelita Palma, Housing Programs Manager
1. Explanation
2. Amended and Restated Disposition and Development Agreement
3. Resolution
No CEQA Exemption - This action is not subject to review under the California Environmental Quality Act
FINAL ADOPTION:
APPROVED: ________________ MIS
No Fiscal Impact – This report is informational only, there is no fiscal impact associated with the report. No additional subsidy will be needed from the CDC-HA to complete the project. The Project was previously awarded $435,027.30 in HOME Investment Partnership Grant funds that has already been appropriated.
Adopt the Resolution.
Not applicable to this report.
(619) 336-4219
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Attachment No. 1
City of National City, California
Community Development Commission-Housing Authority
June 7, 2022
Staff Report Explanation
Resolution of the Community Development Commission -Housing Authority of the City of National City, California authorizing the Executive Director to execute an amended and restated Disposition and Development Agreement (“DDA”) with San Diego Habitat for Hum anity that removes the Community Land Trust model and the San Diego Community Land Trust as a party to the DDA in the development of six affordable homeownership units at 405 -419 West 18th Street in National City.
Background | The Community Development Commission -Housing Authority of the City of National City (“CDC-HA”) purchased an 8,771 square foot lot (“Property”) located at 405-419 West 18th Street in National City for $400,000 using Low and Moderate Housing Funds. Since the Property was purchased with the Low and Moderate Housing Fund, the Property must be used to develop affordable housing for low and moderate-income households.
San Diego Habitat for Humanity (Habitat), a 501(c)3 nonprofit corporation, currently has a HOME CHDO Agreement with the City of National City (“City”) to rehabilitate or develop homeownership opportunities for low-income households in the National City. Resolution 2018-68 approved the prior Disposition and Development Agreement (Prior DDA) with Habitat and San Diego Communi ty Land Trust (SDCLT) for the development of six affordable homeownership units (Project) under a community land trust at 405-419 West 18th Street in National City.
Summary I During the construction of the Project, the SDCLT expressed financial challenges and withdrew from the DDA with Habitat and the CDC-HA as they were not sure if they would be viable in the future.
“Attachment No. 1” is a DDA that amends and restates in its entirety the Prior DDA and further removes San Diego Community Land Trust as a party to the DDA and terminates its obligations under the Prior DDA. “Attachment No. 1” also establishes conditions for:
1. The CDC-HA to transfer fee title to the Property to Habitat.
2. Habitat to construct the Project on the Property.
3. Habitat to sell the Property as Affordable Units to Eligible Persons for an affordable price.
Project Selection & Details | Pending final documents and signatures, all homeowners are first-time homebuyers from National City. The six attached row townhomes with garages have three (3) bedrooms and 2.5 bathrooms. The unit size ranges from 1,100-to 1.300 sq. ft. These affordable units will be sold to households at or below 80% of the Area Median Income (“AMI”). There is an interest - free repayable loan after 45 years to the CDC-HA in the amount of $139,172.
At resale or transfer of the units, Habitat would assist in targeting families at or below 80% AMI but could sell the units to a household at or below 120% AMI, if necessary. The Property is also subject to a 45- year HOME Invest ment Partnership and Low and Moderate Income Program affordabili ty period which requires that units be resold at or below 120% AMI. Still, Habitat will continue to target households at or below 80% AMI, if feasible. Furthermore, any sale or transfer of all or any portion of the property without prior written approval of the CDC-HA shall be void.
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1 AM
ENDED AND RESTATED
D
ISPOSITION AND DEVELOPMENT AGREEMENT
B
y and Between the
CO
MMUNITY DEVELOPMENT COMMISSION-
H
OUSING AUTHORITY OF THE CITY OF NATIONAL CITY
an
d
S
AN DIEGO HABITAT FOR HUMANITY
(
405-419 West 18th Street)
Attachment No. 2
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2 AMENDED AND RESTATED
DISPOSITION AND DEVELOPMENT AGREEMENT
(405-419 West 18th Street)
THIS AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT
AGREEMENT (“Agreement”) is dated as of the _____ day of _____, 2022 by and between the Community Development Commission -Housing Authority of the City of National City ( “CDC- HA”), and San Diego Habitat for Humanity, a California non- profit public benefit corporation (“Habitat”), with reference to the following recitals (“Recitals”):
Recitals
A. The CDC-HA owns that certain real property commonly known as 405- 419 West 18th Street in the City of National City, which is more particularly described on Exhibit A hereto (“Property”).
B. CDC-HA and Habitat desire by this Agreement to establish conditions for: (i) the CDC-HA to transfer fee title to the Property to Habitat; (ii) Habitat to construct the Project, as defined below, on the Property; and (iii) Habitat to sell the Property as Affordable Units to Eligible Persons (as defined below) for an affordable price.
Agreement
NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, CDC-HA and Habitat hereby amend and restate the Prior Agreement in its entirety and agree as follows:
100. Definitions.
“Affordable Lot” means each of the six (6) legal lots which comprise the Property. Habitat shall construct one (1) Affordable Unit on each of the six (6) Affordable Lots.
“Affordable Unit(s)” means collectively, the six (6) single-family residential dwelling units to be constructed on the Property whose sale, price and occupancy are restricted to Eligible Persons.
“Agreement” means this Amended and Restated Disposition and Development Agreement between CDC-HA and Habitat . This Agreement amends and restates in its entirety the Prior Agreement and further removes San Diego Community Land Trust, a 501(c)(3) non -profit corporation, as a party to this Agreement and terminates its obligations under the Prior Agreement.
“Area Median Income” means the area median income, as adjusted for family size, for the San Diego -Carlsbad Metropolitan Statistical Area, established periodically by the U.S.
Department of Housing and Urban Development (“HUD”) and published in the Federal Register.
In the event HUD ceases to publish an established Area Median Income as aforesaid, the CDC - Attachment No. 2
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3 HA may, in its reasonable discretion, use any other reasonably comparable method of computing Area Median Income and/or the Annual Housing Cost.
“CDC-HA” means the Community Development Commissio n-Housing Authority of the City of National City.
“City” means the City of National City, a California municipal corporation.
“Closing” the close of Escrow for the conveyance of the Property from the CDC -HA to Habitat.
“Closing Deadline” means [_____________________], unless extended by agreement of Habitat and the Executive Director of the CDC-HA or his or her designee.
“Construction Deed of Trust ” means a deed of trust recorded against the Property for purposes of obtaining financing for construction of the Project.
“Default” means the failure of a party to perform any action or covenant required by this Agreement within the time periods provided herein following notice and opportunity to cure, as set forth in Section 601 hereof.
“Eligible Persons” (or individually “Eligible Person”) means with respect to the sale of the Affordable Units, persons or families earning not more than eighty percent (80%) of the then current Area Median Income, provided that such persons or families also meet the requirements set forth in Section 406 of this Agreement. Notwithstanding the foregoing, beginning on the date that is twenty (20) years the date all relevant Project completion data is entered into the Department of Housing and Urban Development’s (“HUD”) Integrated Disbursement and Information System, then with respect to the sale of the Affordable Units, “Eligible Persons” shall mean persons or families earning not more than one hundred twenty percent (120%) of the then current Area Median Income, provided that such persons or families also meet the requirements set forth in Section 406 of this Agreement.
“Escrow” means the escrow depository and disbursement services to be performed by Escrow Agent pursuant to the provisions of this Agreement.
“Escrow Agent ” means Chicago Title Company or another title insurance company mutually selected by the parties hereto.
“Governmental Requirements ” means all laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the state, the county, the City, or any other political subdivision in which the Property is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over CDC-HA, Habitat, or the Property.
“Habitat” means San Diego Habitat for Humanity, a California non- profit public benefit corporation.
Attachment No. 2
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4 “Hazardous Materials” means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California or the United State Government. Provided, however, the term “ Hazardous Materials ” shall not include substances typically used in the ordinary course of developing, operating and maintaining apartment complexes in California or small amounts of chemicals, cleaning agents and the like commonly employed in routine household uses in a manner typical of occupants in other similar properties, provided that such substances are used in compliance with applicable laws.
“Individual Declaration” means each of the declarations of covenants, c onditions and restrictions, in forms approved by the CDC -HA in its sole discretion, to be executed in favor of the CDC-HA by the Eligible Persons purchasing each of the Affordable Units, each to be recorded as an encumbrance against the fee interest in each of the Affordable Units.
“Individual Deed of Trust” means each of the deed s of trust, in form s approved by the CDC-HA in its sole discretion, which will secure the CDC-HA’s interests in the Individual Note and Individual Declaration, to be executed in favor of the CDC -HA by the Eligible Persons purchasing each of the Affordable Units , each to be recorded as an encumbrance against the fee interest in each of the Affordable Units.
“Individual Note” means each of the promissory notes, in forms approved by the CDC-HA in its sole discretion, which will evidence the CDC-HA’s loans to the Eligible Persons purchasing each of the Affordable Units , to be executed in favor of the CDC -HA by the Eligible Persons purchasing each of the Affordable Units.
“Master Declaration” means the declaration of covenants, conditions and restrictions, in forms agreed to by Habitat and the CDC-HA, to be executed by Habitat and recorded against the Property at the Closing. Upon recordation of each Individual Declaration and Individual Deed of Trust against an Affordable Lot, the Master Declaration shall be reconveyed and released with respect to such Affordable Lot. The authority to amend the Master Declaration on behalf of the City and the CDC -HA shall be vested in the Executive Director of the CDC -HA or his or her designee pursuant to the authority granted by Section 706 hereof.
“Master Deed of Trust” means the deed of trust , in a form agreed to by Habitat and the CDC-HA, to be executed by Habitat and recorded against the Property at the Closing. The Master Deed of Trust shall secure this Agreement and the Master Declaration. Upon recordation of each Individual Declaration and Individual Deed of Trust against an Affordable Lot, the Master Deed of Trust shall be reconveyed with respect to such Affordable Lot. The Master Deed of Trust may be subordinated to the Construction Deed of Trust. Any such subordination shall be in a form acceptable to the CDC-HA in its sole discretion. The authority to amend the Master Deed of Trust on behalf of the City and the CDC -HA shall be vested in the Executive Director of the CDC -HA or his or her designee pursuant to the authority granted by Section 706 hereof.
“Maximum Sales Price” shall be determined by the CDC-HA and shall equal the purchase price which will result in a “Monthly Housing Cost” to the purchaser of an Affordable Unit, which does not exceed 1/12
th of thirty percent (30%) of eighty percent (80%) of the Area Median Income, Attachment No. 2
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5 determined as of the date of the close of escrow, assuming the purchaser will finance all of the purchase price of the Affordable Unit, using a 30-year fixed-interest loan and will not make a down payment. “Monthly Housing Cost” means all housing costs applicable to the Affordable Unit, as determined by the CDC-HA, including, without limitation, mortgage principal and interest, taxes, insurance, homeowners association fees and assessments . Notwithstanding the foregoing, beginning on the date that is twenty (20) years the date all relev ant Project completion data is entered into the Department of Housing and Urban Development’s (“HUD”) Integrated Disbursement and Information System, then with respect to the sale of the Affordable Units, the “Maximum Sales Price” shall mean shall be deter mined by the CDC -HA and shall equal the purchase price which will result in a “Monthly Housing Cost” to the purchaser of an Affordable Unit, which does not exceed 1/12
th of thirty-five percent (35%) of one hundred ten percent (110%) of the Area Median Income, determined as of the date of the close of escrow, assuming the purchaser will finance all of the purchase price of the Affordable Unit, using a 30- year fixed- interest loan.
“Prior Agreement” means the Disposition and Development Agreement dated October 2, 2018 entered into by and among CDC -HA, Habitat, and San Diego Community Land Trust, a 501(c)(3) non-profit corporation.
“Project” means the six (6) Affordable Units, and all other improvements to be constructed on the Property.
“Property” means that certain real property generally located at 405 -419 West 18th Street in the City of National City, which is more particularly described on Exhibit A attached hereto
“Scope of Construction” means a scope setting forth all construction work, including without limitation, landscaping, flatwork and similar work, to be done with respect to development of the Property and construction of the Project , which is approved by the CDC -HA in its sole discretion.
200. Property.
201. Acquisition of the Property by Habitat .
201.1 Acquisition Closing and Purchase Price . Subject to all of the terms and conditions of this Agreement, the CDC -HA shall sell the Property to Habitat, and Habitat shall purchase the Property from the CDC -HA at the Closing. The purchase price shall be $1.00. At the Closing, Habitat shall execute the Master Declaration and Master Deed of Trust in favor of the CDC-HA, which shall secure Habitat’s obligations under this Agreement , and cause the same to be recorded against the Property senior to all monetary liens.
201.2 “As-Is,” “Where-Is.” The Property shall be conveyed to Habitat in an “as- is” physical and environmental condition, with no warranty, express or implied, by the CDC -HA as to the condition of any existing improvements, the soil, its geology, the presence of known or unknown faults or Hazardous Materials or toxic substances, and it shall be the sole responsibility of Habitat at its expense to investigate and determine the physical and environmental conditions.
Attachment No. 2
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6 Prior to the Closing, Habitat shall have the right to engage its own environmental consultant (the “Environmental Consultant”) and other consultants to make such investigations of the Property as Habitat deems necessary, including any soils, geotechnical and other testing of the Property, and the CDC-HA shall promptly be provided a copy of all reports and test results provided to Habitat by the Environmental Consultant. It shall be the sole responsibility and obligation of Habitat to take such action as may be necessary to place the physical and environmental conditions of the Property in a condition entirely suitable for the purposes set forth in this Agreement.
201.3 Escrow. Promptly after the execution and delivery of this Agreement, Habitat and the CDC -HA shall open an escrow (“Escrow ”) with Escrow Agent to facilitate th e Closing and conveyance of the Property from the CDC-HA to Habitat. Habitat shall pay all fees, charges, and costs which arise from Escrow, including without limitation all title policy premiums and documentary transfer taxes.
201.4 Closing Conditions for the Benefit of the CDC -HA. The CDC -HA’s obligation to transfer the Property to Habitat is conditioned upon satisfaction (or waiver) of each and all of the conditions set forth in this Section 201.4 on or before the Closing Deadline. Any such waiver s hall be effective only if the same is (i) expressly waived in writing signed by the CDC-HA or by email from the CDC-HA, and (ii) delivered or emailed to Habitat and the Escrow Agent. In the event that one or more of the conditions set forth in this Section 201.4 are not satisfied or expressly waived on or before the Closing Deadline, the CDC-HA (provided the CDC- HA is not in default hereunder) may unilaterally terminate this Agreement by mailing or emailing notice of conditional termination to Habitat and the Escrow Agent. After receipt of such notice of conditional termination, Habitat shall have five (5) business days to cure any non-satisfaction of a condition or other default specified in the notice of conditional termination. If such matter is unsatisfied or cured prior to the expiration of such five (5) day period, then the Closing shall proceed and the CDC -HA waives any right to damages or compensation with respect to the unsatisfied condition. If such matter remains unsatisfied or the default remains uncured after the expiration of such five (5) day period, then this Agreement shall terminate at the close of business on such fifth (5
th) day. Any such termination of this Agreement shall not release Habitat from liability under this Agreement.
(a) No Default. Habitat is not in default in any of its obligations under the terms of this Agreement and all representations and warranties of Habitat contained herein shall be true and correct in all material respects.
(b) Attorneys’ Fees. Habitat has paid prior to or will pay concurrently with the Closing and all reasonable attorneys’ fees incurred by the CDC-HA with respect to the same.
(c) Master Declaration and Master Deed of Trust. Habitat has delivered the fully -executed notarized Master Decl aration and Master Deed of Trust to Escrow Agent.
(d) Additional Documents. The deposit by Habitat into Escrow of all other documents and instruments reasonably required by the Escrow Agent.
Attachment No. 2
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7 (e) Title Policy. Escrow Agent has confirmed and is prepare to issue a title policy in favor of the CDC-HA in the amount of $100,000.00 insuring that the Master Deed of Trust is senior to all monetary liens on the Property.
(f) Environmental Clearance. The Project has satisfactorily completed any necessary the en vironmental reviews under 24 CFR Part 58 of the National Environmental Policy Act (NEPA) and/or California Environmental Quality Act (CEQA).
The parties agree that the provision of any funds to the project is conditioned on the City of National City’s determination to proceed with, modify or cancel the project based on the results of any necessary environmental review under NEPA and CEQA.
201.5 Closing Conditions for the Benefit of Habitat. Habitat’s obligation to close is conditioned upon satisfaction (or waiver) of each and all of the conditions set forth in this Section 201.5 on or before the Closing Deadline. Any such waiver shall be effective only if the same is (i) expressly waived in writing signed by Habitat or by email from Habitat , and (ii) delivered or emailed to the CDC -HA and Escrow Agent. In the event that one or more of the conditions set forth in this Section 201.5 are not satisfied or expressly waived on or before the Closing Deadline, Habitat (provided Habitat is not in default hereunder ) may unilaterally terminate this Agreement by mailing or emailing notice of conditional termination to the CDC-HA and Escrow Agent. After receipt of such notice of conditional termination, the CDC-HA shall have five (5) business days to cure any non -satisfaction of a condition or other default specified in the notice of conditional termination. If such matter is unsatisfied or cured prior to the expiration of such five (5) day period, then the Closing shall proceed and Habitat waives any right to damages or compensation with respect to the unsatisfied condition. If such matter remains unsatisfied or the default remains uncured after the expiration of such five (5) day period, then this Agreement shall terminate at the close of business on such fifth (5
th) day. Any such termination of this Agreement shall not release the CDC-HA from liability under this Agreement.
(a) No Default. The CDC-HA is not in default in any of its obligations under the terms of this Agreement and all representations and warranties of the CDC -HA contained herein shall be true and correct in all material respects.
(b) Grant Deed. The CDC-HA has deposited the duly executed and acknowledged grant d eed conveying the Property from the CDC -HA to Habitat into Escrow.
(c) Additional Documents. The deposit by the CDC -HA into Escrow of all other documents and instruments reasonably required by the Escrow Agent.
(d) FIRPTA. The deposit by the CDC -HA into Escrow of the CDC - HA’s affidavit that the CDC-HA is not a foreign person and is a “United States Person” as such term is defined in Section 7761(a)(30) of the Internal Revenue Code of 1986, in the form prescribed by federal regulations.
Attachment No. 2
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8 (e) FTB Form 590 . The deposit by CDC -HA into Escrow of a duly executed FTB Form 590 or other evidence that withholding is not required by the Revenue and Taxation Code of California.
201.6 No Sale or Transfer of the Property . The qualifications and identity of Habitat, and its principals, are of particular concern to the community and the CDC-HA. Habitat acknowledges that it is because of such qualifications and identity that the CDC -HA is entering into this Agreement with Habitat. Except as otherwise provided in this Agreement , Habitat shall not sell, transfer or otherwise convey all or any portion of the Property without the prior written approval of the CDC-HA, which approval may be withheld in the sole discretion of the CDC-HA.
Any sale, transfer or conveyance of all or any portion of the Property without the prior written approval of the CDC-HA shall be void.
202. Subsequent Financing. Prior to completion of construction of the Project and the sale of all of the Affordable Units, no secured loan, deed of trust, or encumbrance, except for the Construction Deed of Trust shall be placed upon any portion of the Property, whether by refinancing or otherwise, without first obtaining the express written consent of the CDC-HA.
203. Representations and Warranties.
203.1 CDC-HA Representations and Warranties . CDC-HA represents and warrants to Habitat that the CDC-HA is a public body, corporate and politic, existing pursuant to the California Community Redevelopment Law (California Health and Safety Code Section 33000), which has been authorized to transact business pursuant to action of the City. CDC -HA has full rig ht, power and lawful authority to convey the Property as provided herein and the execution, performance and delivery of this Agreement by CDC-HA has been fully authorized by all requisite actions on the part of CDC-HA.
203.2 Habitat’s Representations and Warranties. Habitat represents and warrants to the CDC-HA as follows:
(a) Authority. Habitat is a California nonprofit corporation. The persons executing this Agreement on behalf of Habitat have all necessary authority to execute this Agreement on behalf of Habitat, and this Agreement is a binding obligation of Habitat. A copy of the Certificate of Good Standing for Habitat will be delivered to the CDC-HA within five (5) business days of final approval of the Agreement. Habitat will have full right, power and lawful authority to undertake all obligations as provided in this Agreement.
(b) No Conflict . The execution, delivery and performance of Habitat’s obligations under this Ag reement will not constitute a default or a breach under any contract, agreement or order to which either of them is a party or by which it is bound.
(c) No Bankruptcy. Habitat is not the subject of a bankruptcy proceeding.
Attachment No. 2
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9 204. Precautions After Closing . From and after the Closing, Habitat shall take all necessary precautions to prevent the release in, on or under the Property of any Hazardous Materials. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, Habitat shall install and utilize such equipment and implement and adhere to such procedures as are consistent with commercially reasonable standards as respects the disclosure, storage, use, removal and disposal of Hazardous Materials.
205. Required Disclosures After Closing . From and after the Closing , Habitat shall notify CDC-HA, and provide the CDC -HA with a copy or copies, of all environmental permits, disclosures, applications, entitlements or inquiries relating to the Property , including notices of violation, notices to comply, citations, inquiries, clean- up or abatement orders, cease and desist orders, reports filed pursuant to self-reporting requirements and reports filed or applications made pursuant to any Governmental Requirement s relating to Hazardous Materials and underground tanks. Habitat shall report to the CDC-HA, as soon as possible after each incident, any unusual or potentially important incidents with respect to the environmental condition of the Property. In the event of a release of any Hazardous Materials into the environment, Habitat shall, as soon as possible after the release, deliver to the CDC-HA a copy of any and all reports relating thereto and copies of all correspondence with governmental agencies relating to the release. Upon request, Habitat shall deliver to the CDC-HA a copy or copies of any and all other environmental entitlements or inquiries relating to or affecting the Property including, but not limited to, all permit applications, permits and reports including, without limitation, those reports and other matters which may be characterized as confidential.
206. Indemnity. From and after the Closing, Habitat agrees to indemnify, defend and hold CDC-HA harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys’ fees), resulting from, arising out of, or based upon any of the following: (i) the presence, release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Property , or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, parallel indemnity after closing cost or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment. This indemnity does not include any condition arising solely as a result of the negligence or willful misconduct of the CDC -HA or its employees, agents, representatives, successors or assigns.
300. Development of the Property by Habitat .
301. CDC-HA Review and Approval of the Scope of Construction. Habitat shall prepare and submit a Scope of Construction for the Project to be constructed on the Property to the CDC- HA for review and approval. Exactly one (1) Affordable Unit shall be constructed on each Attachment No. 2
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10 Affordable Lot. The CDC-HA shall have the right to review and approve or disapprove all aspects of the Scope of Construction. Habitat acknowledges and agrees that the CDC-HA is entitled to approve or disapprove the Scope of Construction in order to satisfy the CDC-HA’s obligation to promote the sound construction and redevelopment of the Property , to promote a high level of design which will impact the surrounding development, and to provide an environment for the social, economic and psychological growth and well -being of the citizens of the City , including but not limited to the residents of the Property . Habitat shall not be entitled to any monetary damages or compensation as a result of the CDC-HA’s disapproval or failure to approve or disapprove the Scope of Construction.
302. Standards for Disapproval. The CDC-HA shall have the right to disapprove in its sole discretion any of the Scope of Construction, as set forth in Section 301, above, including without limitation if the same do not conform to this Agreement or are otherwise incomplete. In the event the Scope of Construction is not approved, the CDC-HA shall state in writing provided to Habitat the reasons for disapproval. Habitat, upon receipt of notice of disapproval from the CDC-HA, shall revise such portions and resubmit the revised Scope of Construction to the CDC- HA for approval. The CDC-HA and Habitat agree to work together in good faith to resolve any disagreements and disputes regarding the Scope of Construction.
303. Revisions . If Habitat desires to propose any revisions to the CDC-HA-approved Scope of Construction after approval, Habitat shall submit such proposed changes to the CDC- HA. If Scope of Construction, as modified by the proposed change s, generally and substantially conforms to the requirements of the Scope of Construction and this Agreement, the CDC-HA shall review the proposed changes and notify Habitat in writing within thirty (30) days after submission to the CDC-HA whether the proposed change is approved or disapproved. The CDC-HA’s Executive Director is authorized to approve changes to the Scope of Construction. Provided, however, the CDC-HA shall have no obligation to approve any change from the basic use of the Property for anything other than affordable housing.
304. Defects in Plans. The CDC-HA shall not be responsible or liable in any way, either to Habitat or to any third parties, for any defects in the Scope of Construction, or for any structural or other defects in any work done according to the approved Scope of Construction, or for any delays caused by the review and approval processes established by this Section 300. Habitat shall hold harmless and indemnify CDC -HA, the City and their officers, employees, agents and representatives from and against any and all claims, demands and suits for damages to property or injuries to persons arising out of or in any way relating to the Property, including without limitation any defects in the Scope of Construction, violation of any laws, and for defects in any work done according to the approved Scope of Construction or for defects in work performed by Habitat or any contractor or subcontractor of Habitat.
305. Land Use Approvals. Before commencement of the Scope of Construction work or any works of improvement at the Property, Habitat shall, at Habitat’s sole expense, secure or cause to be secured any and all land use and other entitlements, permits and approvals which may be required for the Scope of Construction work by the City or any other governmental agency affected by such rehabilitation, construction or work. Neither CDC-HA, nor the City shall be responsible in any way for, the processing of Habitat ’s building permits or other permit Attachment No. 2
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11 applications with the City and the execution of this Agreement does not constitute the granting of or a commitment to obtain any required land use permits, entitlements or approvals.
306. Deadline for Completion of the Scope of Construction. The Scope of Construction shall be completed not later than twenty-four (24) months from the Closing. Failure to complete all of the Scope of Construction shall, inter alia, be a default by Habitat, entitling the CDC-HA to exercise all of its rights and remedies, including without limitation foreclosure of the Master Deed of Trust.
307. Cost of Project . All costs whatsoever of the P roject shall be borne by Habitat , including without limitation the cost of planning, designing, developing and constructing the six (6) Affordable Units in accordance with the Scope of Construction.
308. Insurance Requirements. Habitat shall take out and maintain during the terms of construction of the Project, and shall cause its contractor and subcontractors to take out and maintain until completion of the Scope of Construction, a comprehensive general liability policy in the amount of not less than $4,000,000 combined single limit policy and not less than $1,000,000 combined single limit policy for subcontractors; provided that the use of umbrella/excess liability policies to achieve such limits will be acceptable, and a comprehensive automobile liability policy in the amount of $1,000,000 combined single limit, or such other policy limits as the CDC-HA may approve at its discretion, including contractual liability, as shall protect Habitat, the City and CDC-HA from claims for such damages. Such policy or policies shall be written on an occurrence form. Habitat shall also furnish or cause to be furnished to the CDC-HA evidence satisfactory to the CDC-HA that Habitat, and any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement, carries workers’ compensation insurance as required by law. Habitat shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form approved by the CDC-HA setting forth the general provisions of the insurance cover age. This countersigned certificate shall name the City and CDC-HA and their respective officers, agents, and employees as additionally insured parties under the policy, and the certificate shall be accompanied by a duly executed endorsement evidencing such additional insured status. The certificate and endorsement by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify the City and CDC-HA of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Habitat shall be primary insurance and not be contributing with any insurance maintained by the City of CDC-HA, and the policy shall contain such an endorsement. The insurance policy or the endorsement shall contain a waiver of subrogation for the benefit of the City and CDC-HA. The required certificates shall be furnished by Habitat prior to the Closing.
309. Rights of Access. Habitat agrees to allow the CDC -HA and its representatives to access the Property to review and inspect its activities under this Agreement as the CDC-HA shall require. The CDC-HA shall monitor Habitat’s activities without liability for said inspection and review.
310. Compliance With Laws . Habitat represents and warrants that during the term of this Agreement that it will comply with all Federal Davis Bacon and State prevailing wage Attachment No. 2
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12 requirements to the extent the same are applicable to the work. Habitat shall carry out the design and completion of the Scope of Construction in conformity with all applicable laws, including all applicable state labor standards, the City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the Title 24 of the California Code of Regulations, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq. , Government Code Section 4450, et seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil Code Section 51, et seq. Habitat hereby agrees to carry out development, rehabilitation, construction and operation of the Property, including, without limitation, any and all public works (as defined by applicable law), in conformity with all applicabl e local, state and federal laws .
Habitat hereby expressly acknowledges and agrees that neither the City nor the CDC-HA has ever previously affirmatively represented to Habitat or any of its contractors in writing or otherwise, in a call for bids or otherwise, that the work to be covered by the bid or contract is or is not a “public work,” as defined in Section 1720 of the Labor Code. Habitat hereby agrees that it shall have the obligation to provide any and all disclosures, representations, statements, rebidding, and/or identifications which may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law. Habitat hereby agrees that it sha ll have the obligation to provide and maintain any and all bonds to secure the payment of contractors (including the payment of wages to workers performing any public work) which may be required by the Civil Code, Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law. Habitat hereby agrees that it shall have the obligation, at its sole cost, risk and expense, to obligate any party as may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law. Habitat shall indemnify, protect, defend and hold harmless the City, the CDC-HA and their respective officers, employees, contractors and agents, with counsel re asonably acceptable to the City and the CDC -HA, from and against any and all loss, liability, damage, claim, cost, expense, and/or “ increased costs ” (including labor costs, penalties, reasonable attorneys’ fees, court and litigation costs, and fees of expert witnesses) which, in connection with the completion of the Scope of Construction, including, without limitation, any and all public works (as defined by applicable law), results or arises in any way from any of the following: (i) the noncompliance by Habitat of any applicable local, state and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, if applicable, the requirement to pay state prevailing wages); (ii) the implementation of Sections 1726 and 1781 of the Labor Code, as the same may be enacted, adopted or amended from time to time, or any other similar law; (iii) failure by Habitat to provide any required disclosure, representation, statement, rebidding and/or identification which may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law; (iv) failure by Habitat to provide and maintain any and all bonds to secure the payment of contractors (including the payment of wages to workers performing any public work) which may be required by the Civil Code, Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law; and/or (v) failure by Habitat to obligate any party as may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law.
It is agreed by the parties that, in connection with the development, rehabilitation, construction and operation of the Project and the Property, including, without limitation, any public work (as defined by applicable law), Habitat shall bear all risks of payment or non-payment of state Attachment No. 2
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13 prevailing wages and/or the implementation of Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. “Increased costs” as used in this Section shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time. The foregoing indemnity shall survive termination of this Agreement.
311. Nondiscrimination in Employment . Habitat certifies and agrees that all persons employed or applying for employment by it, its affiliates, subsidiaries, or holding companies, and all subcontractors, bidders and vendors, are and will be treated equally by it without regard to, or because of race, color, religion, ancestry, national origin, sex, age, pregnancy, childbirth or related medical condition, medical condition (cancer related) or physical or mental disability, and in compliance with Title VII of the Civil Rights Act of 1964, 42 U.S.C. Section 2000, et seq., the Federal Equal Pay Act of 1963, 29 U.S.C. Section 206(d), the Age Discrimination in Employment Act of 1967, 29 U.S.C. Section 621, et seq., the Immigration Reform and Control Act of 1986, 8 U.S.C. Section 1324b, et seq., 42 U.S.C. Secti on 1981, the California Fair Employment and Housing Act, Cal. Government Code Section 12900, et seq., the California Equal Pay Law, Cal.
Labor Code Section 1197.5, Cal. Government Code Section 11135, the Americans with Disabilities Act, 42 U.S.C. Section 12101, et seq., and all other anti -discrimination laws and regulations of the United States and the State of California as they now exi st or may hereafter be amended. Habitat shall allow representatives of the CDC-HA access to its employment records related to this Agreement during regular business hours to verify compliance with these provisions when so requested by the CDC-HA.
312. Taxes and Assessments. Habitat shall pay prior to delinquency all ad valorem real estate taxes and assessments on the Property . Habitat shall remove or have removed any levy or attachment made after the Closing on the Property or any part thereof, or assure the satisfaction thereof within a reasonable time.
313. Liens and Stop Notices. Habitat shall not allow to be placed on the Property or any part thereof any lien or stop notice. If a claim of a lien or stop notice is given or recorded affecting the Property, Habitat shall, within thirty (30) days of such recording or service or within five (5) days of the CDC-HA’s demand, whichever last occurs:
(a) pay and discharge the same;
(b) effect the release thereof by recording and delivering to the CDC-HA a surety bond in sufficient form and amount as approved by the CDC-HA in its sole discretion; or
(c) provide the CDC-HA with other assurance which the CDC-HA deems, in its sole discretion, to be satisfactory for the payment of such lien or bonded stop notice and for the full and continuous protection of the CDC-HA from the effect of such lien or bonded stop notice.
314. Financing of the Project .
Attachment No. 2
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14 314.1 No Encumbrances Except Mortgages or Deeds of Trust. Mortgages and deeds of trust may be recorded against all or any part of the Property only with the CDC-HA’s prior written approval, and only for the purpose of securing loans of funds to be used for financing the Scope of Construction work, and any other purposes deemed necessary and appropriate by the CDC-HA in connection with the Project . Habitat shall notify the CDC-HA in advance of the execution or recordation of any mortgage or deed of trust. Habitat shall not enter into any mortgage or deed of trust for financing the Project, Property or any Affordable Unit without the prior written approval of the CDC-HA, which approval the CDC-HA agrees to give if any such mortgage or deed of trust for financing is given to a n institutional lender and the same is necessary for completion of the Scope of Construction. The CDC-HA agrees that the Master Deed of Trust shall be subordinated to the Construction Deed of Trust, such subordination shall be via a subordination agreement in a form acceptable to the CDC-HA in its sole discretion.
314.2 Right of CDC-HA to Cure Mortgage or Deed of Trust Default. In the event of a mortgage or deed of trust default or breach by Habitat, Habitat shall immediately deliver to the CDC-HA a copy of any mortgage holder’s notice of default. The CDC-HA shall have the right but not the obligation to cure the default. In such event, the CDC-HA shall be entitled to reimbursement from Habitat of all costs and expenses incurred by the CDC-HA in curing such default, including without limitation attorneys’ fees.
315. Intentionally Deleted
316. Flood Insurance. Habitat represents, warrants, and certifies, pursuant to 24 CFR
92.358, that no portion of the Property, is located within a Flood Plain or Flood Hazard Zone or Area, as indicated on a FEMA Map; or that the Property is located within a community participating in the National Flood Insurance Program and Habitat agrees to purchase and maintain flood insurance for the duration of the term of this Agreement.
317. Accessibility Standards. Habitat represents and warrants that it will comply with all federal, state and local requirements and regulations concerning access to the units by the disabled and handicapped persons.
400. Post Construction.
401. Intentionally Deleted
402. Financing of Affordable Units . Habitat shall cause each of the Eligible Persons acquiring an Affordable Unit to: (i) execute an Individual Note and deliver the original of the same to the CDC-HA; (ii) execute and notarize a deed of trust in favor of the first position lender and cause the same to be recorded against the Affordable Lot being acquired by such Eligible Persons; and (iii) execute and notarize an Individual Declaration and an Individual Deed of Trust in favor of the CDC-HA and cause such Individual Declaration and Individual Deed of Trust to be recorded against the Affordable Lot being acquired by such Eligible Persons.
403. No Conveyance in Excess of the Maximum Sales Price . During the period commencing on the closing of the initial sale of each Affordable Unit and continuing for forty-five Attachment No. 2
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15 (45) years thereafter, no Affordable Lot or Affordable Unit shall be sold, transferred, or conveyed to a prospective purchaser or occupied by any person unless and until the CDC -HA has verified the prospective purchaser is an Eligible Person, and the sales price of the Affordable Lot and Affordable Unit does not exceed the Maximum Sales Price. No persons, including without limitation Habitat, may cumulatively receive any amount of money and/or other consideration upon the transfer or conveyance of all of any portion of any Affordable Lot or Affordable Unit in excess of the Maximum Sales Price.
404. Fixed-Interest Loans. Each Affordable Unit shall be financed only with a 30-year fixed-interest loan to the Eligible Persons acquiring each Affordable Lot and Affordable Unit.
405. Additional Restrictions on Eligible Persons .
405.1 No Full -Time Students . The term Eligible Person shall not include any household comprised exclusively of persons who are full -time students, unless such persons are married and eligible to file a joint federal income tax return. The term “full-time student” shall be defined as any person who will be or has been a full -time student during five calendar months of the calendar year in question at an educational institution (other than a correspondence school) with regular faculty and students.
405.2 No Student Dependents. Notwithstanding the provisions of subparagraph 405.1, the term Eligible Person shall not include any student dependent as defined in the U.S.
Internal Revenue Code, unless the taxpayer (upon whom the student in question is dependent) resides in the same unit.
405.3 No Owners of Real Property . The term Eligible Person shall not include any person or any household comprised of one or more persons who own any other real property at the close of escrow of the Affordable Unit.
405.4 Liquid Asset Limitation . The term Eligible Person shall not include any person or household holding, directly or indirectly, liquid assets whose aggregate value exceeds, at the time of determination of eligibility, one hundred percent (100%) of the then-current annual Area Median Income. As used herein, the term “liquid assets” refers to cash and assets which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. The term “liquid assets” shall not include retirement funds which are not readily accessible or which cannot be accessed by the buyer without the buyer incurring a penalty.
405.5 Income of Co -Purchasers. The income of all co -purchasers and/or occupants shall be taken into account in determining whether a household is comprised of Eligible Persons.
405.6 No Relationship with Habitat. The term Eligible Person shall not include any person employed by Habitat or of any individuals who are members, principals, executives, Attachment No. 2
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16 directors, partners or shareholders in Habitat or in any entity having an ownership interest in Habitat or in the Property or any relative (by blood or marriage) of any of the foregoing persons.
500. Covenants and Restrictions.
501. Affordable Units. Habitat covenants and agrees for itself, its successors, assigns, and every successor in interest to the Property, or any part thereof, that Habitat (during the period such entity owns the Property) shall comply with this Agreement and the Master Declaration upon the Closing and for 45 years thereafter.
502. Maintenance Covenants. Habitat represents and warrants that after completion of Scope of Construction, the Property and all of the Affordable Units shall continually be maintained in a decent, safe and sanitary condition, and in good repair as described in 24 C.F.R. §5.703, and in a manner which satisfies the Uniform Physical Conditions Standards promulgated by the Department of Housing and Urban Development (24 C.F.R. §5.705), as such standards are interpreted and enforced by the CDC -HA under its normal policies and procedures. Habitat warrants that all construction work shall meet or exceed the applicable local codes and construction standards, including zoning and building codes of the City of National City as well as the provisions of the Model Energy Code published by the Council of American Building Officials.
Habitat hereby consents to periodic inspection by the CDC -HA’s designated inspectors and/or designees during regular business hours, including the Code Enforcement Agents of the City, to assure compliance with all applicable zoning, building codes, regulations and property standards.
503. Obligation to Refrain from Discrimination.
503.1 S tate and Federal Requirements. Habitat shall, at all times during the term of this Agreement, comply with all of the affirmative marketing procedures adopted by the CDC- HA. Habitat shall maintain records to verify compliance with the applicable affirmative marketing procedures and compliance. Such records are subject to inspection by the CDC-HA during regular business hours upon five (5) days written notice.
503.2 Additional Requirements. Habitat hereby agrees to comply with the Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practices Act, and any other applicable Federal and State laws and regulations.
503.3 Fair Housing Laws. All activities carried out by Habitat and/or agents of Habitat shall be in accordance with the requirements of the Federal Fair Housing Act. The Fair Housing Amendments Act of 1988 became effective on March 12, 1989. The Fair Housing Amendments Act of 1988 and Title VIII of the Civil Rights Act of 1968, taken together, constitute the Fair Housing Act. The Fair Housing Act provides protection against the following discriminatory housing practices if they are based on race, sex, religion, color, handica p, familial status, or national origin: denying or refusing to rent housing, denying or refusing to sell housing, treating differently applicants for housing, treating residents differently in connection with terms and conditions, advertising a discriminatory housing preference or limitation, providing false information about the availability of housing, harassing, coercing or intimidating people from enjoying or exercising their rights under the Fair Housing Act, blockbusting for profit, persuading Attachment No. 2
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17 owner to sell or rent housing by telling them that people of a particular race, religion, etc. are moving into the neighborhood, imposing different terms for loans for purchasing, constructing, improving, repairing, or maintaining a home, or loans secured by housing; denying use or participation in real estate services, e.g., brokers’ organizations, multiple listing services, etc. The Fair Housing Act gives HUD the authority to hold administrative hearings unless one of the parties elects to have the case heard in U.S. District Court and to issue subpoenas. Both civil and criminal penalties are provided. The Fair Housing Act also provides protection for people with disabilities and proscribes those conditions under which senior citizen housing is exempt from the prohibitions based on familial status. The following State of California Laws also govern housing discrimination and shall be complied with by Habitat: Fair Employment and Housing Act, Unruh Civil Rights Act of 1959, Ralph Civil Rights Act of 1976, and Civil Code Section 54.1.
504. Nondiscrimination Covenants. Habitat covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on the basis of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability of any person in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Habitat or any person claiming under or through either of them establish or permit any such practice or practices of discrimination or s egregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
(a) Deeds. In deeds: “The grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land.”
(b) Leases. In leases: “The lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the leasing, subleasi ng, renting, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall lessee itself, or any person claiming under or through it, establish or permit such practice or practices of discrimination or segregation with reference to the selection, Attachment No. 2
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18 location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land herein leased.”
(c) Contracts. In contracts for the rental, lease or sale of the Property: “There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer , use, occupancy, tenure or enjoyment of the land, nor shall the transferee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land.”
505. Effect of Violation of the Terms and Provisions of this Agreement. The CDC-HA is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided, without regard to whether the CDC-HA has been, remains or is an owner of any land or interest therein in the Property. The CDC-HA shall have the right, if this Agreement or its covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled.
600. Defaults and Remedies.
601. Default Generally. Failure by the CDC-HA or Habitat to perform any action or covenant required by this Agreement within the time periods provided herein following notice and failure to cure as described hereafter, constitutes a “ Default” under this Agreement. A party claiming a Default shall give written notice of Default to the other party specifying the alleged Default. Except as otherwise expressly provided in this Agreement, the claimant shall not institute any proceeding against any other party, and the other party shall not be in Default if: (i) such alleged Default is cured thirty (30) days from receipt of such written notice: or (ii) if the alleged Default is such that it is not capable of being cured within thirty (30) days, but corrective action is initiated within thirty (30) days and the allegedly defaulting party diligently and in good faith works to effect a cure as soon as possible.
602. Institution of Legal Actions. In addition to any other rights or remedies and subject to the restrictions otherwise set forth in this Agreement, either party may institute an action at law or equity to seek specific performance of the terms of this Agreement, or to cure, correct or remedy any Default, to recover damages for any Default, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the County of San Diego, State of California, downtown branch, or in the District of the United States District Court in the County of San Diego.
603. Entry and V esting of Title in CDC-HA Prior to Completion of Construction.
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19 603.1 Right of Reentry. In addition to all other rights and remedies the CDC-HA may have at law or in equity, the CDC-HA has the right, at its election, to enter and take possession of the Property, and all improvements thereon (whether by foreclosure of the Master Deed of Trust or otherwise), and terminate and revest the Property in the CDC-HA if after the Closing:
(a) Habitat fails to start the Scope of Construction work as required by this Agreement within one (1) year of the Closing or for a period of thirty (30) days after written notice thereof from CDC-HA; or
(b) Habitat abandons or substantially suspends the Scope of Construction work required by this Agreement for a period of thirty (30) days after written notice thereof from CDC-HA; or
(c) Habitat transfers or suffers any involuntary transfer of the Property or any part thereof in violation of contrary to the provisions of this Agreement.
603.2 Limitations on Right of Entry. Such right to enter and vest shall be subject to and be limited by and shall not defeat, render invalid or limit any mortgage or deed of trust permitted by this Agreement that is senior to the Master Deed of Trust.
603.3 Termination of Right of Entry . The CDC -HA’s right to enter and take possession of the Property and all improvements thereon, and terminate and revest the Property in the CDC-HA, shall terminate upon the timely completion of the Scope of Construction.
604. Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
605. Inaction Not a Waiver of Default. Any failures or delays by either party in asserting any of its rights and remedies as to any Default shall not operate as a waiver of any Default or of any such rights or remedies, or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies shall govern the interpretation and enforcement of this Agreement.
700. General Provisions.
701. Notices, Demands and Communications Between the Parties . All notices under this Agreement shall be in writing and sent (a) by certified or registered U.S. mail, return receipt requested, (b) overnight by a nationally recognized overnight courier such as UPS Overnight or FedEx, or (c) by personal delivery. All notices shall be effective upon receipt (or refusal to accept delivery). All notices shall be delivered to the following addresses or such other addresses as changed by any party from time to time by written notice to the other parties hereto.
To CDC-HA: Community Development Commission-
Attachment No. 2
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20 Housing Authority of the City of National City
Attention: Executive Director
1243 National City Boulevard
National City, CA 91950
To Habitat: San Diego Habitat for Humanity
Attention: (INSERT)
8182 Mercury Court
San Diego, CA 92111
702. Enforced Delay; Extension of Times of Performance. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays or Defaults are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litiga tion; unusually severe weather; acts or omissions of the other party; or any other causes beyond the control and without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within five (5) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of Executive Director of the CDC-HA and Habitat.
703. Transfers of Interest in Property or Agreement. The qualifications and identity of Habitat are of particular concern to the CDC-HA. It is because of those qualifications and identity that the CDC-HA has entered into this Agreement with Habitat. Except as otherwise provided in this Agreement, during the period commencing on the closing of the sale of each Affordable Unit and continuing for forty-five (45) years thereafter, no voluntary or involuntary successor in interest to Habitat shall acquire any rights or powers under this Agreement, nor shall Habitat make any total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the Property or the improvements thereon without prior written approval of the CDC-HA. Except as otherwise provided in this Agreement, any proposed total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the Property or the improvements thereon, will entitle CDC-HA to its right of reentry and revesting as set forth in Section 603 hereof. For the reasons cited above, Habitat represents and agrees for itself, each partner and any successor in interest to itself that without the prior written approval of the CDC-HA, there shall be no significant change in the ownership of Habitat or in the relative proportions thereof, or with respect to the identity of the parties in control of Habitat or the degree thereof, by any method or means. Habitat shall promptly notify the CDC -HA of any and all changes whatsoever in the identity of the parties in control of Habitat or the degree thereof, of which it or any of its officers have been notified or otherwise have knowledge or information. Any change (voluntary or involuntary) in the composition, management or control of Habitat shall be a Default. All of the terms, covenants and conditions of this Agreement shall be binding upon Habitat and their permitted successors and assigns. Whenever the term “Habitat” is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided.
Attachment No. 2
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21 704. Non-Liability of Officials and Employees. No member, official or employee of the City or CDC-HA shall be personally liable to Habitat, or any successor in interest, in the event of any Default or breach of this Agreement or for any amount which may become due to Habitat or its successors, or on any obligations under the terms of this Agreement.
705. Relationship Between the Parties. It is hereby acknowledged that the relationship between the CDC-HA and Habitat is that of independent contractors and not that of a partnership or joint venture and that the CDC-HA and Habitat shall not be deemed or construed for any purpose to be the agent of the other. Habitat agrees to indemnify, hold harmless and defend the CDC-HA from any claim made against the CDC -HA arising from a claimed relationship of partnership or joint venture between the CDC-HA and Habitat.
706. CDC-HA Amendment of Agreement and Approvals and Actions. Whenever a reference is made herein to an action or approval to be undertaken by the CDC-HA, the Executive Director of the CDC -HA or his or her designee is authorized to act on behalf of the CDC -HA.
Furthermore, the Executive Director of the CDC-HA or his or her designee is authorized to amend this Agreement, the Master Declaration and the Master Deed of Trust, and approve any and a ll alterations, amendments or changes to the Project, without further authorization from the City Council of the City of National City, provided that after such amendment, alteration or change the Property continues to be restricted as affordable housing.
707. Counterparts . This Agreement may be signed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement.
708. Integration. This Agreement contains the entire understanding between the parties relating to the subject matter of this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral and written, are merged in this Agreement and shall be of no further force or effect. Each party is entering this Agreement based solely upon the representations set forth herein and upon each party ’s own independent investigation of any and all facts such party deems material. All exhibits referred to in this Agreement are hereby incorporated in this Agreement by this reference, regardless of whether or not the exhibits are actually attached to this Agreement. The Recitals to this Agreement are hereby incorporated in this Agreement by this reference.
709. No Real Estate Brokerage Commissions. The CDC-HA and Habitat each represent and warrant to the other that no broker or finder is entitled to any commission or finder ’s fee in connection with Habitat ’s acquisition of the Property . The parties agree to defend and hold harmless the other party from any claim to any such commission or fee from any broker, agent or finder with respect to this Agreement which is payable by such party.
710. Attorneys’ Fees. The parties agree that the prevailing party in litigation for the breach and/or interpretation and/or enforcement of the terms of this Agreement shall be entitled to their expert witness fees, if any, as part of their costs of suit, and reasonable attorneys’ fees as may be awarded by the court, pursuant to California Code of Civil Procedure ( “CCP”) Section 1033.5 Attachment No. 2
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22 and any other applicable provisions of California law, including, without limitation, the provisions of CCP Section 998.
711. Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the int ent of this Agreement or of any of its terms.
References to section numbers are to sections in this Agreement, unless expressly stated otherwise.
712. Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall be deemed to include the others where and when the context so dictates. The word “including” shall be construed as if followed by the words “without limitation.” This Agreement shall be interpreted as though prepared jointly by both parties.
713. No Waiver. A waiver by either party of a breach of any of the covenants, conditions or agreements under this Agreement to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this Agreement.
714. Modifications . Any amendment, alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each party (any amendment, alteration, change or modification of this Agreement on behalf of the CDC -HA, including without limitation changes to the economic terms of this Agreement and its exhibits, shall be made on behalf of the CDC-HA by the Executive Director of the CDC-HA in such Executive Director’s sole discretion).
715. Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law.
716. Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day (such as the day escrow opens), and including the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term “holiday” shall mean all holidays as specified in Section 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during a day, that time shall be Pacific Time Zone time.
717. Legal Advice. Each party represents and warrants to the other the following: they have carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise.
Attachment No. 2
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23 718. Time of Essence. Time is expressly made of the essence with respect to the performance by the CDC-HA and Habitat of each and every obligation and condition of this Agreement.
719. Cooperation. Each party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements.
720. Conflicts of Interest. No member, official or employee of the City or the CDC-HA shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested.
721. Exhibits and Recitals Incorporated. All exhibits referred to in this Agreement are hereby incorporated in this Agreement by this reference, regardless of whether or not the exhibits are actually attached to this Agreement. The recitals to this Agreement are hereby incorporated in this Agreement by this reference.
722. Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement.
723. Authority to Sign. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the CDC-HA that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing.
[Remainder of page intentionally blank; signature page follows]
Attachment No. 2
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24 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.
CDC-HA:
Community Development Commission-Housing Authority of the City of National City
By:__________________________________
Brad Raulston, Executive Director
APPROVED AS TO FORM:
By:__________________________________
Jennifer K. Gilman Assistant CDC-HA General Counsel
[SIGNATURES CONTINUED ON FOLLOWING PAGE]
Attachment No. 2
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Attachment No. 2
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26 Attachment No. 2
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27 EXHIBIT A
Property Legal Description
The land referred to herein is situated in the State of California, County of San Diego and described as follows:
LOTS 13, 14 AND 15 IN BLOCK 146 OF NATIONAL CITY, IN THE CITY OF NATIONAL
CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 348, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, OCTOBER 2, 1882.
APN: 559-085-08
Attachment No. 2
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RESOLUTION NO. 2022 –
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING
AUTHORITY OF THE CITY OF NATIONAL CITY, CALIFORNIA AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE AN AMENDED AND RESTATED
DISPOSITION AND DEVELOPMENT AGREEMENT (“DDA”) WITH SAN DIEGO
HABITAT FOR HUMANITY THAT REMOVES THE COMMUNITY LAND TRUST
MODEL AND THE SAN DIEGO COMMUNITY LAND TRUST AS A PARTY TO THE
DDA IN THE DEVELOPMENT OF SIX AFFORDABLE HOMEOWNERSHIP UNITS AT 405-419 WEST 18TH STREET IN NATIONAL CITY
WHEREAS, the Community Development Commission-Housing Authority (“CDC- HA”) owned that certain real property commonly known as 405 -419 West 18th Street in the City of National City (“Property”); and
WHEREAS, San Diego Habitat for Humanity (“Habitat”) , a 501(c)3 nonprofit corporation, currently has a HOME CHDO Agreement with the City of National City (“City”) to rehabilitate or develop homeownership opportunities for low-income households in the City; and
WHEREAS, Habitat partnered with San Diego Community Land Trust (“SDCLT”), a 501(c)3 nonprofit corporation, to provide a Community Land Trust model that would create six (6) Affordable Units for sale (“Project”); and WHERAS, the on October 2, 2018 a Disposition and Development Agreement (“2018 DDA”) was entered into by the CDC-HA, Habitat and SDCLT; and WHEREAS, the 2018 DDA established conditions for: (i) the CDC -HA to transfer fee title to the Property to Habitat; (ii) Habitat to construct the Project on the Property; (iii) Habitat to transfer the Property to SDCLT after completion of the Project; and (iv) SDCLT to ground lease each of the Affordable Units to Eligible Persons for an affordable price ; and
WHEREAS, during the construction of the Project, the SDCLT expressed financial challenges and withdrew from the 2018 DDA with Habitat and the CDC-HA as they were not sure if they would be viable in the future; and
WHEREAS, amended and restated DDA, amends and restates in its entirety the 2018 DDA and further removes SDCLT as a party to the DDA and terminates its obligations under the 2018 DDA; and
WHEREAS, CDC-HA and Habitat enter into the amended and restated Disposition and Development Agreement (“DDA 2022”); and
WHEREAS, conditions are established for: (i) the CDC-HA to transfer fee t itle to the Property to Habitat; (ii) Habitat to construct the Project on the Property; (iii) Habitat to sell the Property as Affordable Units to Eligible Persons for an affordable price.
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Resolution No. 2022 –
Page Two
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: The amends and restates in its entirety the Disposition and Development Agreement signed on October 2, 2018 (“20 18 DDA”) and further removes San Diego Community Land Trust as a party and terminates its obligations under the 2018 DDA.
Section 2: Community Development Commission -Housing Authority (“CDC - HA”) and San Diego Habitat for Humanity (“Habitat”) enter into the amended and restated Disposition and Development Agreement (“DDA 2022”).
Section 3: The DDA 2022 conditions are established for (i) the CDC -HA to transfer fee title to the Property to Habitat; (ii) Habitat to construct the Project on the Property; (iii) Habitat to sell the Property as Affordable Units to Eligible Persons for an affordable price.
Section 4: City Council authorizes the City Manager to execute a 2022 DDA with Habitat.
Section 5: That t he City Clerk shall certify the passage and ado ption of this Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 7TH day of June, 2022.
Alejandra Sotelo-Solis, Chairwoman
ATTEST:
Brad Raulston, Secretary
APPROVED AS TO FORM:
Charles E. Bell Jr., General Counsel
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The following page(s) contain the backup material for Agenda Item: Resolution of the Community Development Commission-Housing Authority of the City of National City, California (“Housing Authority”) approving two conditional loan awards for funding requested through the Affordable Housing Notice of Funding Availability (“NOFA”) released on October 14, 2021 of Eight Million Dollars ($8,000,000) to the Union Tower Affordable Housing Project by Wakeland Housing Development and Housing Corporation and Two Million Dollars ($2,000,000) to the Azuriik Affordable Housing Project by MAAC National City, LP. (Housing Authority)
Please scroll down to view the backup material.
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CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION-HOUSING AUTHORITY
COUNCIL AGENDA STATEMENT
501-419-462-650-*
Funding will be appropriated upon the determination of a final loan commitment.
ITEM TITLE:
PREPARED BY:
DEPARTMENT: Housing Authority
PHONE: (619) 336-4391
EXPLANATION:
APPROVED BY:
AGENDA ITEM NO. MEETING DATE: June 7, 2022
ENVIRONMENTAL REVIEW:
FINANCIAL STATEMENT:
APPROVED: Finance
ORDINANCE: INTRODUCTION:
ACCOUNT NO.
STAFF RECOMMENDATION:
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
_________________
________________
Resolution of the Community Development Commission-Housing Authority of the City of National City, California (“Housing Authority”) approving two conditional loan awards for funding requested through the Affordable Housing Notice of Funding Availability (“NOFA”) released on October 14, 2021 of Eight Million Dollars ($8,000,000) to the Union Tower Affordable Housing Project by Wakeland Housing Development and Housing Corporation and Two Million Dollars ($2,000,000) to the Azuriik Affordable Housing Project by MAAC National City, LP.
See Attachment No. 1
1. Staff Report and Exhibits
2. Resolution
FINAL ADOPTION:
APPROVED: ________________ MIS
This action does not constitute a project under the California Environmental Quality Act (“CEQA”) Guidelines Section 15378(b)(2).
Adopt the Resolution.
Not Applicable.
Carlos Aguirre, Director
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Attachment No. 1
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Community Development Commission-Housing Authority of the City of National City Staff Report
June 7, 2022
Resolution of the Community Development Commission-Housing Authority of the City of National City, California (“Housing Authority”) approving two conditional loan awards for funding requested through the Affordable Housing Notice of Funding Availability (“NOFA”) released on October 14, 2021 of Eight Million Dollars ($8,000,000) to the Union Tower Affordable Housing Project by Wakeland Housing Development and Housing Corporation and Two Million Dollars ($2,000,000) to the Azuriik Affordable Housing Project by MAAC National City, LP.
Staff Recommendation
1. Initiate the underwriting process and development of loan documents to award a loan of up to $8,000,000 for the following Affordable Housing New Construction Project – Union Tower.
2. Initiate the underwriting process and development of loan documents to award a loan of up to $2,000,000 for the following Affordable Housing New Construction Project – Azuriik; and Executive Summary
This agenda report presents the results of the Community Development Commission-Housing Authority of the City of National City Notice of Funding Availability (NOFA) for Affordable Housing released in October 2021. The NOFA provided an opportunity for housing developments to apply for $10 million in available Fiscal Year (FY) 2022 funding. The NOFA solicited applications for affordable housing rental or ownership projects, prioritizing projects that serve low-income households, created new affordable rental and ownership housing, leverage outside resources, that are ready to start construction, align with the components of the 2021-2029 Housing Element and 2021-2025 Housing Strategic Plan, and are projects in communities of opportunity (e.g., near transit and amenities), among other criteria indicated in the NOFA Guidelines (Exhibit 1).
The funds will serve as gap financing for new construction, acquisition with rehabilitation, or rehabilitation of affordable rental, homeownership, and permanent supportive housing projects. The funding is intended to partially fill the gap in a development’s financial structure after all other available sources of housing development funds are utilized. These funds will provide financing at below-market interest rates with deferred loan repayment for affordable housing projects.
After the release of the NOFA on October 14, 2021, a total of two (2) applications were received by the November 19, 2021 deadline. The applications were reviewed for compliance in terms of the NOFA and evaluated according to the established NOFA Evaluation Criteria. Projects were then ranked based on the scoring criteria described in the NOFA. Additional details regarding the projects can be found in Exhibit 3 and Exhibit 4.
An addendum to the NOFA was issued on April 7, 2022 to include a financial feasibility and gap analysis of the two applications to help determine the funding recommendations (Exhibit 2). No new applications were accepted per the addendum. The two applicants had an opportunity to provide additional financial information such as an updated pro forma and status of funding sources as part of the financial feasibility and gap analysis process.
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Attachment No. 1
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The financial gap analysis concluded that it is comparatively more likely that the Azuriik proposal may be developed without some or all of the Housing Authority’s financial support, and comparatively less likely that the Union Tower proposal may be developed without some or all of the Housing Authority’s financial support. Other key findings included that both applications’ costs are credible despite appearing elevated due to current construction cost trends. Additionally, the analysis found that Union Tower is more financially efficient than Azuriik.
Table 1 provides the final point score, amount requested, and the provisional amount awarded for the submitted applications.
Table 1. Application Final Point Score and Funding Recommendation Applicant Project
Name
Site
Address Total Units
Total
Affordable
Units
Final Point
Score
Funding
Recommendation
MAAC National
City, LP Azuriik
233
Roosevelt
Avenue
National
City
400 396 120 $2,000,000
Wakeland
Housing and
Development
Corporation
Union
Tower
2313 F
Avenue
National
City
94 93 116 $8,000,000
The recommended action will initiate the underwriting process and development of loan documents to award the following loan amounts:
• a loan of up to $8,000,000 to Union Tower, 2313 F Avenue (Wakeland Housing and Development Corporation); and
• a loan of up to $2,000,000 to Azuriik, 233 Roosevelt Avenue (MAAC National City, LP).
Background
The Community Development Commission-Housing Authority of the City of National City (Housing Authority) Notice of Funding Availability (NOFA) for affordable housing was released on October 14, 2021, and applications were due on November 19, 2021.
The NOFA made approximately $10 million in total funds available for all capital requests for new construction, acquisition with rehabilitation, or rehabilitation of affordable housing serving households earning up to 60% of the Area Median Income (AMI) for rental projects and households earning up to 80%-120% of the AMI for homeownership projects. Capital funds are from the Housing Authority’s Housing Fund and are subject only to the conditions set forth in the NOFA.
Applicable Area Median Income (AMI) Level
Funds included in the NOFA provide an opportunity for National City to facilitate the acquisition and new construction, acquisition with rehabilitation, or rehabilitation of affordable rental or homeownership in the City of National City for households with low income (up to 60 percent of San Diego County’s Area Median Income [AMI]), very low income (up to 50 percent of AMI), and extremely low income (up to 30 percent of AMI).
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Attachment No. 1
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Affordability Targeting
The NOFA guidelines set forth an affordability targeting for both rental projects and ownership projects.
Rental projects must provide units (excluding managers’ units) affordable to low-income households as follows:
• One hundred percent (100%) of units funded with Housing Authority funds must be restricted as affordable at or below 60% AMI.
• Rents for affordable units must be the lesser of the designated restricted rent limit or ten percent (10%) below market rate within a 1 mile radius. • At least twenty percent (20%) of the affordable units must have annual rents plus utility allowance of no more than 30% of 30% AMI, and be reserved for very low income households earning less than 30% AMI.
• No more than fifteen (15%) of the affordable units may have annual rents plus utility allowance between 30% of 80% AMI and 30% of 120% AMI (Moderate-Income Units).
Ownership projects must provide units affordable as follows:
• One hundred percent 100% of units funded must be restricted as affordable. • The affordable units must have an average affordability level of 100% AMI or less. For example, in a 26 unit project, 10 units could be targeted to households at 120% AMI, 10 units at 80% AMI, and 6 units at 100% AMI.
• Priority will be given to projects targeting some units to households at 80% of AMI or below. • Households with incomes up to 120% of AMI are eligible for assisted units, provided the average affordability level of the affordable units is 100% of AMI or less (see example provided above).
Funds as Gap Financing
The funds per the NOFA is for new construction, acquisition with rehabilitation, or rehabilitation of affordable rental, homeownership, and permanent supportive housing projects and is intended to partially fill the gap in a development’s financial structure after all other available sources of housing development funds are utilized. Such “other available funds” may include but are not limited to: private bank loans, equity from the sale of low-income housing tax credits, owner equity, sale of tax-exempt Multifamily Housing Revenue Bonds, state and federal funding, grants and donations, and other public and private sources of funds. Applicants are expected to pursue financing from all available sources.
As appropriate, financial assistance to the selected project will be made in the form of amortized payments or residual receipts loans. The terms of the loans outlined in the NOFA shall be subject to negotiation on a project-by-project basis. All loans will be secured by a lien on the property. Applicants who previously received a funding commitment from the Housing Authority for the development of a project are not eligible to apply for the same project.
NOFA Application Process
A NOFA of available funding was issued on October 14, 2021. Applications were considered through a competitive application process as indicated in the NOFA guidelines. A total of 2 applications were received by the November 19, 2021 deadline, requesting a total of $18 million for the $10 million available funds in the NOFA. A summary of the submitted applications are indicated in Table 2. No 302 of 384
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applications were deemed substantially incomplete or rejected. An addendum was issued on April 7, 2022, which added a financial feasibility and gap analysis to the review of the applications.
Table 2. Summary of Applications Submitted
Project
Name Project Description Site Address Total
Units
Total
Development
Cost1
Amount
Requested
Union
Tower
94-unit community of
affordable apartment homes
with on-site services and
community amenities
designed to help resident
thrive
2313 F
Avenue
National City
94 $53 million $8 million
Azuriik
A new construction Type 1,
single 22-story, elevator-
served, high rise mixed-use
affordable housing building,
containing 400 units and
offering 11,253 square feet
of indoor and outdoor
community service facility
space
233
Roosevelt
Avenue
National City
400 $236.2 million $10 million
Notes: (1) Development cost and amount requested reflects the applicant’s recent pro forma and amount request that was submitted part of the financial feasibility and gap analysis.
Scoring Review
A set of third-party reviewers evaluated the applications according to the established Evaluation Criteria in the NOFA. The Evaluation Criteria is shown in Table 2. • Readiness – Reviewers reviewed the applications and awarded points based on the Readiness Criteria as described in the NOFA. This includes a review of the funding sources and commitments, the narrative description of the financing approach, degree to which outside funding is pursued, the funding commitments to the project, and the anticipated receival of entitlements and community support.
• Developer Experience and Capacity – Reviewers reviewed the applications and awarded points based on the Developer Experience and Capacity Criteria as described in the NOFA. This includes a review of history of completing affordable housing projects on time and within budget, completing a similar project in the past, team experience and capacity, financial strength, and alignment with Housing Authority’s goals, objectives, and actions outline din the Housing Authority’s Strategic Housing Plan and 2021-2029 Housing Element. • Project Budget – Reviewers reviewed the applications and awarded points based on the Project Budget Criteria as described in the NOFA. This includes a review of completeness and reasonable anticipated development costs.
• Amenities & Community Space – Reviewers reviewed the applications and awarded points based on the Amenities & Community Space Criteria as described in the NOFA. This includes a review of the anticipated amenities and community space features as part of the project. • Location – Reviewers reviewed the applications and awarded points based on the Location Criteria as described in the NOFA. This includes a review of the project’s location in terms of 303 of 384
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geographic equity, potential for neighborhood revitalization, and proximity to high-quality transit, school, community center, public park, and grocery store. • Target Population and Project Attributes – Reviewers reviewed the applications and awarded points based on the Target Population and Project Attributes Criteria as described in the NOFA.
This includes a review of providing more low income rental units than 20% of units serving households with rents no more than 30% of 30% of AMI and the number of larger units provided.
• Collaboration & Planning – Reviewers reviewed the applications and awarded points based on the Collaboration and Planning Criteria as described in the NOFA. This includes a review of local planning efforts, community engagement and outreach efforts, and potential to address community needs.
Table 3. Evaluation Criteria
Criteria
1. Readiness
a. Indicated and Sufficient Evidence of Funding Sources b. Innovative Financing
c. Leveraging
d. Funding Commitments
e. Site Control and Anticipation of Entitlements
2. Developer Experience and Capacity
a. Project History
b. Developer Experience, Capacity & Staffing
c. Developer Financial Strength
d. Strength of the Development Team
e. Bonus Point Category
3. Project Budget
4. Amenities & Community Space
5. Location
a. Geographic Equity
b. Neighborhood Revitalization
c. Proximity to Nearby Amenity: Public Transit
d. Proximity to Nearby Amenity: School
e. Proximity to Nearby Amenity: Community Center or Public Park f. Proximity to Nearby Amenity: Grocery Store
6. Target Population and Project Attributes
a. Income Targeting
b. Unit Size
7. Collaboration & Planning
a. Local Planning Efforts
b. Community Engagement
c. Addressing Community Needs
Total Points Available
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The applications were scored by a set of reviewers based on the evaluation criteria in the NOFA. The scores were compiled and averaged to develop the final point score for the applications for each criteria. Table 4 shows the final point score (an average of the scores assigned by the reviewers) for each criteria.
Table 4. Final Point Score for Submitted Applications
Criteria Points Available Final Point
Score - Union
Final Point
Score - Azuriik
1. Readiness 45 33 38
2. Developer Experience and Capacity 35 30 28
3. Project Budget 15 11 13
4. Amenities & Community Space 5 4 5
5. Location 25 23 21
6. Target Population and Project Attributes 15 3 3
7. Collaboration & Planning 15 13 12
Total Points Available 155 116 120
Financial Feasibility and Gap Analysis
A financial feasibility and gap analysis with additional financial information from the submitted applications was conducted to help determine the funding recommendations. An updated pro forma and financial material was requested and provided by both applicants. The financial feasibility and gap analysis reviewed their previously submitted pro forma in addition to the newly submitted pro forma.
Consistent with the original terms of the NOFA, the financial feasibility and gap analysis included prevailing wage requirements.
Based on the review of the submitted financial material including the updated pro forma, it was found that both proposals have elevated costs, though such costs are likely the reality given broad inflationary pressures currently being experienced throughout the economy. The Azuriik proposal provides an amenity rich high-rise building with significantly more, though smaller units (81% are one-bedroom or studio units), while the Union Tower proposal provides a more traditional mid-rise building with some amenities, and a greater distribution of larger units.
Notable elements of the Azuriik development pro forma include a land cost of $16.0 million ($16.5 including offsite costs), direct construction costs of $691 per net residential square foot ($535 per gross building square foot excluding parking area), and a developer fee of $28.1 million. The total development cost is estimated to be $236.2 million.
Notable elements of the Union Tower development pro forma include no land cost ($290,000 including demolition, holding, and title costs), direct construction costs of $588 per net residential square foot ($558 per gross building square foot excluding parking area), and a developer fee of $2.5 million. The total development costs is estimated to be $53.0 million.
As part of the financial feasibility and gap analysis, pro proforma for area affordable housing projected recently awarded allocations of Low Income Housing Tax Credits (“LIHTC”) from the California Tax Credit Allocation Committee (“CTAC”) were reviewed to provide some reference points for cost comparison and benchmarking. A total of six projects were identified for comparison purposes. Of the six, five were 305 of 384
Attachment No. 1
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proximate to National City and funded in the 2021 CTAC allocation cycle. The sixth is a project in the City of Los Angeles funded in 2020, and unlike the others identified, is for a high-rise building.
Through the financial feasibility and gap analysis, it was determined that the pro forma costs in both proposals appear elevated, though credible given the development programs proposed and current construction cost trends. Overall, it was found that the Union Tower proposal to be more efficient financially, with lower costs per unit, per bedroom (whether studios are weighted at 0.75 bedrooms per unit, or 1.0 bedroom per unit), and per square foot. This lower cost structure is heavily attributed to the difference in building types between the two proposals. To a relatively minor extent, the superior amenities package of the Azuriik proposal may also drive some of the cost difference.
Given the information reviewed and absent additional funding sources, it is anticipated that it is comparatively more likely that the Azuriik proposal may be developed without some or all of the Housing Authority’s financial support, and comparatively less likely that the Union Tower proposal may be developed without the amount of funding recommended by this report.
Next Steps
Once funding is approved by the Housing Authority and the developer has secured its remaining gap funding sources, staff will draft loan documents for review by the developer and the Housing Authority’s legal counsel. This conditional commitment of funds is subject to final underwriting and the approval of all loan documents by the Housing Authority.
Exhibits
1. Community Development Commission-Housing Authority of the City of National City Notice of Funding Availability (NOFA) for Affordable Housing Guidelines
2. NOFA Addendum No. 1 (Issued April 7, 2022)
3. Azuriik - Cover Letters and Application Forms
4. Union Tower - Cover Letters and Application Forms
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Community Development Commission-
Housing Authority of the City of National City
Notice of Funding Availability (NOFA)
De
scription: NOFA for Affordable Housing
Submittal Deadline: November 19, 2021 5:00PM
Exhibit 1
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Table of Contents
1.0 Overview and General Information .................................................................................................. 4
1.1 Process and Timeline .......................................................................................................................... 6
2.0 Requirements .................................................................................................................................... 6
2.1 Eligibility .............................................................................................................................................. 6
2.1.1 Eligible Applicants ........................................................................................................................ 6
2.1.2 Eligible & Ineligible Activities and Costs ...................................................................................... 7
2.2 Loan Terms and Underwriting ............................................................................................................ 7
2.2.1 Limitations on Swapping Awards ............................................................................................... 12
2.2.2 Loan Commitment Reservation Period ...................................................................................... 12
2.2.3 Loan Termination or Reduction ................................................................................................. 12
2.3 Affordability Targeting ...................................................................................................................... 12
2.3.1 Minimum Affordability – Rental Projects .................................................................................. 13
2.3.2 Minimum Affordability – Ownership Projects ........................................................................... 13
2.4 Financing Guidelines ......................................................................................................................... 13
2.4.1 Minimum and Maximum Loan Amounts ................................................................................... 13
2.4.2 Construction Contingency .......................................................................................................... 14
2.4.3 Maximum Per-Unit Total Development Costs (TDC) ................................................................. 14
2.5 Developer Fee Limit .......................................................................................................................... 14
3.0 Evaluation Criteria ........................................................................................................................... 14
3.1 READINESS (maximum 45 points) ..................................................................................................... 15
3.2 DEVELOPER EXPERIENCE AND CAPACITY (maximum 35 points) ...................................................... 16
3.3 PROJECT BUDGET (maximum 15 points) .......................................................................................... 18
3.4 AMENITIES & COMMUNITY SPACE (maximum 5 points) .................................................................. 18
3.5 LOCATION (maximum 25 points) ...................................................................................................... 18
3.6 TARGET POPULATION AND PROJECT ATTRIBUTES (maximum 15 points) ........................................ 19
3.7 COLLABORATION AND PLANNING (maximum 15 points) ................................................................. 20
4.0 Application ...................................................................................................................................... 21
4.1 Cover letter ....................................................................................................................................... 21
4. 2 Application ........................................................................................................................................ 21
4.2.1 Application Information & Project Summary ............................................................................. 22
4.2.2 Development Team Members Resume & Capacity ................................................................... 22 Exhibit 1
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4.2.3 Applicant Experience and References........................................................................................ 22
4.2.4 Site Control and Demonstration of Value .................................................................................. 23
4.2.5 Zoning ......................................................................................................................................... 23
4.2.5 Tenant Relocation ...................................................................................................................... 23
4.2.6 Evidence of Construction Scope and Cost Estimate .................................................................. 24
4.2.7 Commercial Space Funding ........................................................................................................ 24
4.2.8 Other Funding Sources ............................................................................................................... 24
4.2.9 Project Timeline ......................................................................................................................... 24
4.3 Project Narrative ............................................................................................................................... 24
4.4 Project Vicinity Map .......................................................................................................................... 25
4.4.1 Project Maps of High-Quality Transit and Community Services ................................................ 25
4.5 Project Pro forma .............................................................................................................................. 25
4.6 Outreach Efforts ................................................................................................................................ 26
4.7 Neighborhood and Local Government Support ................................................................................ 26
4.8 Preliminary Management and Marketing Plan ................................................................................. 26
4.9 Market Demand ................................................................................................................................ 27
4.10 Applicant Financial Statements/capacity ........................................................................................ 28
5.0 Application Attachments ................................................................................................................ 28 Attachment A – Area Median Income Limits for San Diego County, CTCAC Rent Limits, Monthly Utility Allowances .............................................................................................................................................. 29 Attachment B – Affordable Home Price ................................................................................................. 31 Attachment C – Map of Low and Moderate-Income Areas in National City .......................................... 32 Attachment D – Application Checklist .................................................................................................... 33 Attachment E – Application Form ........................................................................................................... 34 Attachment F – Developer Experience Worksheets ............................................................................... 35 Attachment G – Developer Capacity Worksheets .................................................................................. 37 Exhibit 1
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1.0 Overview and General Information
The Community Development Commission-Housing Authority of the City of National City (Housing Authority) is pleased to announce the availability of Fiscal Year 2022 funding for housing through this Notice of Funding Availability (NOFA).
This NOFA includes approximately $10 million in total funds for all capital requests for new construction, acquisition with rehabilitation, or rehabilitation of affordable housing serving households earning up to 60% of the Area Median Income (AMI) for rental projects and households earning up to 80%-120% of the AMI for homeownership projects.
Capital funds are from the Housing Authority’s Housing Fund and are subject only to the conditions set forth in this NOFA.
Applicable Area Median Income (AMI) Level
Funds included in this NOFA provide an opportunity for National City to facilitate acquisition and new construction, acquisition with rehabilitation, or rehabilitation of affordable rental or homeownership in the City of National City for households with low income (up to 60 percent of San Diego County’s Area Median Income [AMI]), very low income (up to 50 percent of AMI), and extremely low income (up to 30 percent of AMI). Projects with proposed income averaging will be reviewed on case-by-case basis. All applicable federal funding regulations for AMI requirements will apply.
Eligible Projects – Capital Funds
These funds will provide financing at below-market interest rates with deferred loan repayment. This NOFA only applies to developments located in the City of National City.
Funds as Gap Financing
This NOFA is for new construction, acquisition with rehabilitation, or rehabilitation of affordable rental, homeownership, and permanent supportive housing projects and is intended to partially fill the gap in a development’s financial structure after all other available sources of housing development funds are utilized. Such “other available funds” may include but are not limited to: private bank loans, equity from the sale of low-income housing tax credits, owner equity, sale of tax-exempt Multifamily Housing Revenue Bonds, state and federal funding, grants and donations, and other public and private sources of funds. Applicants are expected to pursue financing from all available sources.
As appropriate, financial assistance to the selected project will be made in the form of amortized payments or residual receipts loans. The terms of the loans outlined in the NOFA shall be subject to negotiation on a project-by-project basis. All loans will be secured by a lien on the property. Applicants who previously received a funding commitment from the City for the development of a project are not eligible to apply for the same project.
Application Selection
The Housing Authority reserves the right to reject any and all submittals, including rejection of applications that may rank high in points relative to other applications. Selection of projects, to be funded or not funded, shall be subject to the approval of the Housing Authority in its sole discretion and Exhibit 1
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based upon a determination of which project is most likely to meet the Housing Authority’s goal of timely creating additional cost-effective affordable housing.
The Housing Authority’s available funding is extremely limited and the Housing Authority may not be able to fund every desirable project that is proposed. The public benefits and financial impacts of submitted applications will be carefully compared. Qualified developers with affordable housing development experience are encouraged to submit applications.
The Housing Authority, in its sole discretion, may adjust and substitute funding sources, based on the available and most appropriate funding sources for projects at the time the loan recommendation is presented to the Housing Authority. The Housing Authority reserves the right to reallocate and/or supplement funds from one NOFA to another, or from any other available source of funds, should it be deemed advisable by the Housing Authority, in its sole discretion. However, nothing contained herein creates an obligation upon the Housing Authority to reallocate or supplement funds.
Application Submittal
Applicants are required to submit a complete application with all applicable exhibits to ensure the most recent and up to date project information is available to the Housing Authority. Applicants should request the amount needed to ensure feasibility of their project regardless of the amount of funds available through this process.
The deadline for submitting proposals in response to the NOFA is 5:00 P.M. on November 19 ,2021.
Proposals will be reviewed for compliance with the terms of this NOFA and evaluated according to the established NOFA Evaluation Criteria. All applications submitted within the application period shall be reviewed by the Housing Authority staff and third-party analyst to ensure compliance with all the application requirements and shall be competitively scored. Projects that apply to the NOFA will be ranked based on scoring criteria described in the NOFA. Staff will request that the Board of Commissioners of the Housing Authority approve the ranked list of projects and a total amount of funds to be awarded. The Housing Authority reserves the right to request additional information and/or to reject any or all proposals.
The Housing Authority will take the following priorities into account for the NOFA process:
• The creation of new affordable rental & ownership housing developments. • Assistance for housing projects targeting people experiencing homelessness and extremely low- income households including Permanent Supportive Housing projects; • Project Readiness; and
• Projects that align with the components of the 2021-2029 Housing Element and 2021-2025 Housing Strategic Plan.
Interested and qualified developers who can successfully demonstrate their ability to acquire, build, and operate affordable housing are encouraged to submit applications. Questions related to this NOFA must be submitted by email to [email protected] by 5:00 P.M. on November 1, 2021.
Exhibit 1
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1.1 PROCESS AND TIMELINE
The Housing Authority has developed a comprehensive process to evaluate responses to this NOFA against specific evaluation criteria. The principal steps in the submission and evaluation process are:
• Applicants must submit: one (1) copy of the proposal and required exhibits to https://bit.ly/2021NOFA_Submit
• The Checklist (Attachment D) should be used as the Table of Contents for the application. • Each applicant will be permitted to submit one application for this NOFA round. In the event of a joint application, the application will count towards the lead developer’s application limit. • All materials must be submitted electronically, as noted above. Forms/templates may be downloaded from https://bit.ly/2021NOFA
• Completed applications should be uploaded to https://bit.ly/2021NOFA_Submit, no later than 5:00 p.m. on November 19, 2021. Applications received after the deadline will not be considered.
• The Housing Authority will evaluate applications in accordance with the established Evaluation Criteria. Applications that are deemed substantially incomplete may be rejected. • Applicants will be ranked in accordance with the score received using the Evaluation Criteria. • Applicants will be notified of the results of the evaluation no later than February 2022. • Once the staff review is completed, the top scoring application(s) will be presented to the Housing Authority Board of Commissioners and final funding approval will be made in spring 2022.
• Once funding is approved by the Housing Authority and the developer has secured its remaining gap funding sources, staff will draft loan documents for review by the developer and the City Attorney. All items required at this stage must be submitted and approved by the Housing Authority before the loan can close. Construction may not start until all required items have been received and approved, and the Housing Authority has issued a Notice to Proceed. • A loan award is not final until a loan agreement signed by both the Housing Authority and the borrower that spells out all required terms and conditions of the loan is signed.
Recommendation for approval from staff does not constitute an award of a loan.
2.0 Requirements
The Housing Authority provides financial assistance to developers of lower income housing. The Housing Authority requirements are generally consistent regardless of the original source of funding. However, for certain requirements, one source of funds may allow greater flexibility than others. Applicants should assume that federal requirements will apply. If the use of federal funds creates a significant feasibility problem, this should be explained in the application cover letter.
2.1 ELIGIBILITY
2.1.1 Eligible Applicants
Applications will be accepted from non-profit and for-profit organizations, joint ventures, or partnerships that serve low-income households, and those experiencing homelessness.
Exhibit 1
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2.1.2 Eligible & Ineligible Activities and Costs
Eligible Activities and Costs
Funds from this NOFA may be used for the following activities and costs, including but not limited to:
• Construction and/or permanent financing for the acquisition, pre-development, and/or rehabilitation, and new construction of affordable rental housing • Temporary Relocation costs
• “Hard” costs of construction and/or rehabilitation of housing • “Soft” costs associated with the acquisition (including pre-acquisition due diligence costs), financing fees and costs and/or residential rehabilitation, including marketing costs, appraisals, architect and engineering fees, building permit and impact fees, developer/applicant fees, construction management, financial consulting, environmental assessments and reports, legal and accounting expenses, title insurance, purchase costs, holding costs associated with the property such as taxes, insurance and debt service, option fees (to be repaid no later than the date of the purchase of the property), property inspections, capitalized replacement reserves. • Mixed-use projects (containing both residential and non-residential space) are eligible.
Generally, living space should make up the majority of the development. In any case, only the affordable housing portion of the project will be assisted and commercial costs need to be split out from the residential costs.
Ineligible Activities and Costs
Funds from this NOFA may not be used for the following activities and costs, including but not limited to:
• Luxury/higher-end features such as granite countertops, high-end stainless-steel appliances, and swimming pools should be avoided because such features contribute to the funding gap.
Instead, developer/owner/applicants are encouraged to design projects with modest design and features;
• Non-residential uses such as commercial space or off-site improvements • Permanent Relocation
• Resident Services costs (upfront or ongoing)
• Operating reserves
• Furnishings
2.2 LOAN TERMS AND UNDERWRITING
Loan terms/underwriting are subject to change by the Housing Authority at its sole discretion. The Housing Authority reserves the right to impose such additional and/or revised conditions in the final documentation of the transaction as may be approved by the Housing Authority and as are reasonably necessary to protect the interests of the Housing Authority and the City and fulfill the intent of this NOFA. Additional details are outlined below in Table below. If loan terms other than those listed below are sought for a project, the cover letter must explicitly state the requested terms with a detailed explanation of the reasons you are requesting such terms. Such requests are granted at the sole discretion of the City and Housing Authority.
Exhibit 1
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Table 1. Loan Terms
Affordability
Term Restricted units must remain affordable for a minimum of 55 years.
Appraised Value Purchase price (land and improvements) must not exceed the property’s appraised value.
Cash Out
Any refinances that result in cash out to the borrower or related entity shall be evaluated by the Housing Authority and may result in additional underwriting requirements and be subject to a third-party financial analysis.
Closing Costs
Borrower shall pay all escrow, title and closing costs, including, without limitation, paying for an American Land Title Association lenders policy for the Housing Authority loan, with endorsements acceptable to the Housing Authority, ensuring the Housing Authority loan lien priority, as referenced in this NOFA.
Contingency
Fifteen percent of the Housing Authority’s loan amount will be withheld as contingency and will be paid upon construction completion, as applicable, and once an unconditional lien release from the general contractor and subcontractors is received by the City. This contingency will be reduced by any project cost savings.
Cost Savings
If there are any cost savings, improved debt, or improved tax credit equity pricing, then such funds will be used first to make an adjustment to the total tax credit allocation as may be required by the California Tax Credit Allocation Committee (CTCAC).
Thereafter, 50 percent of the excess sources/cost savings will be applied toward the reduction of the Housing Authority’s loan. The borrower shall submit the final tax credit cost certification to the Housing Authority for its review and approval prior to the final payment being released.
Debt Coverage
Ratio
Minimum of 1.15.
The Housing Authority will review the proposed financing structure and operating pro forma to determine the development’s feasibility during the affordability period. Projects proposing the use of Low-Income Housing Tax Credits shall demonstrate financial feasibility for a minimum 17-year term.
Developer Fee
Because the developer fee is paid out of development costs and contributes to the financing gap:
• Developer/applicant fee payments for tax-credit projects shall be in accordance with lender and investor requirements.
• For developments requiring relocation of residents, final payment of developer fees will not be made until the Housing Authority verifies that tenant relocation has been completed in full compliance with all tenant relocation laws. The Housing Authority, at its sole discretion, will analyze projects requiring any type of relocation on an ad hoc basis.
• Projects proposing the use of Low-Income Housing Tax Credits: Deferred developer fee must be paid off by year 15.
Due Diligence
(post-award)
If the project is selected, the following are to be provided at borrower’s expense post - award (eligible expense to be reimbursed by loan proceeds):
• Phase I/II Environmental Reports
• National Environmental Policy Act (NEPA) Environmental Assessment (if required) • Prevailing Wage Consultant/Monitor (federal prevailing wage may be required with a HOME funding allocation)
• Permanent and Temporary Relocation Plan (for occupied units and/or businesses); Relocation Consultant (if required)
• Third-Party, Line-by-Line Hard Cost Budget (must be submitted 60 days before financing close)
• Third-Party Construction Review
• Third-Party Borrower capacity review
Exhibit 1
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Fee
Fees to the Housing Authority include (these fees can be reduced by loan proceeds):
• Underwriting Fee. A flat underwriting fee in the amount of $40,000 will be charged for each project as reimbursement of the Housing Authority’s costs related to underwriting and issuing the loan. This must be included in the total development cost of a proposed project and is to be paid at close of escrow and/or at loan closing.
• Legal Fee. The Housing Authority charges a legal costs fee for document preparation and review that must be included in the total development cost of a proposed project. Current Housing Authority legal fees are $25,000 and are to be paid at the close of the escrow (additional $2,500 for City Attorney fees on 4 percent tax-exempt Multifamily Housing Revenue Bond projects). • Compliance Monitoring Fee. Compliance monitoring fees must be incorporated into the operating pro forma. Borrower will pay the fee in accordance with the City fee schedule. Current annual fees are as follows:
o $201 per monitored unit
• Third-Party Construction Review Fee. The Housing Authority may require a third- party review of the construction costs/budget to determine the reasonableness of construction hard costs, post award. The third-party reviewer will be selected by the Housing Authority and paid for by the borrower. Current fees are up to $12,500 and are to be paid at close of escrow.
Financing Gap
The borrower will cover any financing gap that arises after the Housing Authority underwriting, with its equity, its developer fee, and/or other non- Housing Authority sources, all of which shall be subject to the approval of the Housing Authority in its sole and reasonable discretion.
General
Contractor
The Construction Contract shall be competitively bid to at least three qualified General Contractors or three qualified subcontractors for each major trade involved in the construction of the Project. Contracts shall be awarded to the lowest most qualified and responsive bidder (affiliated General Contractors are allowed). The General Contractor is subject to Housing Authority approval. Negotiated contracts are prohibited, and work must be bid down to all subcontractors.
Insurance
The borrower shall at all times during the term of the loan maintain General Liability and Property Insurance in a form acceptable to the City and the Housing Authority and approved by the City’s General Counsel. The City and the City of National City Housing Authority shall be listed as additional insureds for General Liability Insurance and Property Insurance, and the City and the City of National City Housing Authority shall be endorsed as a loss payee of the Property Insurance.
Interest 4 percent simple interest
Limited
Partnership Fee
Limits (Tax
Credit Financed
Projects)
If applicable, year 1 limited partnership fees shall be capped at $25,000. Partnership fee increases will be capped at 3 percent annually. Unpaid General Partner fees shall not accrue. The Housing Authority will require the Limited Partnership Agreement to include this requirement.
Loan Amount Negotiable
Exhibit 1
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Loan
Disbursements
Disbursement shall be upon submittal and approval of eligible costs. Disbursement schedule shall be as follows, if the project is tax credit financed:
• Up to 75 percent at escrow closing;
• 10 percent at 50 percent of completion;
• 10 percent upon project completion;
• 5 percent (contingency) upon conversion to permanent loan.
The Housing Authority Executive Director, is authorized to modify the loan disbursement schedule in his/her sole reasonable discretion, for good cause shown. Loan proceeds are disbursed for work completed upon Housing Authority approval of payment requests in a form approved by the Housing Authority. Verifiable documentation of expense must be submitted with all payment requests.
Loan Term
Rental Projects
55-year minimum
Ownership Projects
4-year minimum
Loan Payments
Regularly scheduled payments from amortized payments or residual receipts are required. • Amortized loans shall be repayable for a maximum term of 55 years at 4 percent simple interest with the first payment due at the end of the first calendar year after project completion.
• Residual receipts loans shall be repayable for a maximum term of 55 years at 4 percent simple interest with the first payment due at the end of the first calendar year after project completion.
• All principal and interest shall be due and payable concurrently with any sale, transfer, conveyance or cash-out refinancing of the property. The Housing Authority’s portion of residual receipts will be:
If no other public lenders:
o Years 1-55: 50 percent of residual receipts to the Housing Authority If other public lenders:
o Proportionate split of residual receipts
The Housing Authority defines residual receipts as the net cash flow of the development after specified expenses and must pay debt service.
The standard payment formula is the lesser of the amortized payment or 50 percent of residual cash flow, with a minimum payment of one-half of estimated first-year residual cash flow starting at the end of the first year after project completion.
In the event that the project loan is rolled over into direct homeowner assistance, the assistance loan(s) must be repaid with interest on the sale or transfer of the unit, unless the unit is resold to a qualified low-income household. The project must ensure that there is a deed restriction or other legally enforceable retention mechanism to ensu re compliance.
Loans for ownership projects are provided at 4 percent simple interest for a minimum term of 4 years.
Managers’ Units Experienced on-site property management is required. The number of managers’ units must be in conformance with lender and local, state and federal requirements.
Maximize Other
Funding Sources
The borrower is required to pursue the maximum available financing from other sources. If awarded, these other sources of funds would be used first to pay Housing Authority - approved cost overruns and/or reductions in estimated funding. The remaining additional proceeds, as allowed by CTCAC, would reduce the Housing Authority’s permanent loan.
Exhibit 1
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Maximum Per-
Unit Total
Development
Costs (TDC)
$495,000
Operating
Expenses
As required by CTCAC.
https://www.treasurer.ca.gov/ctcac/2021-operating-expense-minimums.pdf Property
Manager Fee
The borrower’s proposed property manager’s fee must be reasonable and is subject to the Housing Authority approval.
Purchase Option
Tax Credit Structured Projects must provide the Housing Authority with the first option to purchase at the end of the 15-year tax credit compliance period, or at the end of the Housing Authority loan term, whichever is first.
Recourse The Housing Authority’s loan will be recourse until the timely completion of the construction, after which it will become non-recourse.
Reserves
Allowable reserve categories are limited to the following: Replacement Reserves, Operating Reserve, and a Rent Up Reserve. The Housing Authority, in its sole discretion, reserves the right to require adjustments to any of the allowable reserves.
Replacement Reserves and Operating Reserves must be consistent with CTCAC requirements and/or with the requirements of the most restrictive funding source proposed. The Housing Authority, in its sole discretion, reserves the right to require higher operating or replacement reserves.
Replacement reserves for multifamily rental projects shall not exceed $300.00 per unit, per year.
Operating Reserves shall be no less than three (3) months and no more than s ix (6) months of operating expenses and debt service.
Rent-up reserves shall not exceed $300.00 per unit. Any funds remaining in the rent -up reserves account will be transferred to the replacement reserve account. Prior to the loan closing, the borrower will be required to document to the Housing Authority’s satisfaction any funds disbursed from this account.
All unexpended funds remaining in project reserve accounts must remain for project use during the term of the Housing Authority’s loan or the project Extended Use Period, whichever is longer.
The limited partnership agreement must include a provision addr essing the terms and conditions for disbursement from the reserve accounts that specifically states that upon the transfer of any ownership interest or at the end of the compliance period, whichever is earlier, any funds remaining in the reserve accounts must remain with the project for the term of the Housing Authority’s loan or the Extended Use Period, whichever is longer.
Existing developments applying for tax credits and/or refinancing will be required to show existing reserves as a source.
Any amounts greater than these limits require a detailed explanation by the developer and prior approval by the Housing Authority.
Security The Housing Authority’s loan shall be evidenced by a Loan Agreement, Promissory Note and Deed of Trust.
Exhibit 1
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Underwriting
Vacancy Rate
Assumption
5 percent
2.2.1 Limitations on Swapping Awards
With bond allocations now being competitive, it is critically important that funds are awarded to projects that are ready to move forward in an effort to align limited Housing Authority resources with timely unit production to address the affordable housing shortage in National City.
To ensure the efficient use of program funds, applicants seeking to change funding sources, specifically from a 9 percent tax credit to a 4 percent tax credit or vice versa, must obtain prior written approval from the Housing Authority. Applicants will be required to submit a revised pro forma and timeline for execution, as well as the rationale for the request to change funding or other needed documents as the Housing Authority deems needed in its sole discretion to evaluate the project.
2.2.2 Loan Commitment Reservation Period
Upon issuance of an award letter, funds will be reserved for 24 months. Time extensions may be granted upon successful funding award of other funders, at the sole discretion of the Housing Authority. The Housing Authority reserves the right to cancel its fund reservation if the Housing Authority loan has not closed escrow/commenced construction by the end of the 24th month.
Fund reservation time extensions may be granted at the sole discretion of the Executive Director of the Housing Authority, or designee. If applicable, the Housing Authority loans are contingent upon the applicant obtaining commitments from all other necessary sources of funding. The Housing Authority reserves the right to cancel fund reservations for developments not proceeding in compliance with the timeline as proposed by the applicant in their loan application.
2.2.3 Loan Termination or Reduction
Loan commitments or agreements may be reduced or terminated if the Housing Authority determines, in its sole discretion that:
a. One or more conditions of the commitment, agreement, due diligence items or disbursement terms have not been, or will not be met;
b. The borrower has violated program guidelines;
c. Anticipated project financing sources are not awarded, and no alternative financing plan acceptable to the Housing Authority is presented; or
d. Project Development expenses are less than projected. In this case, the amount of the loan will be reduced to an amount required to meet actual expenses.
This is not an exhaustive list and the Housing Authority reserves the right in its sole discretion to terminate or reduce the loan amount.
2.3 AFFORDABILITY TARGETING
See Attachment A (Area Median Income Limits for San Diego County, CTCAC Rent Limits, Monthly Utility Allowances). Maximum rents must be adjusted downward by an allowance for tenant-paid utilities in accordance with the HUD Utility Schedule Model where instructions may be found at www.huduser.org/portal/resources/utilallowance.html.
Exhibit 1
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The Area Median Income (AMI) range for household income can be higher than the rent or sales price restrictions to ensure a range of household income levels are served. Rents and tenant incomes will be annually reviewed for compliance by the Housing Authority.
2.3.1 Minimum Affordability – Rental Projects
Proposed projects must provide units (excluding managers’ units) affordable to low-income households as follows:
• One hundred percent (100%) of units funded with Housing Authority funds must be restricted as affordable at or below 60% AMI.
• Rents for affordable units must be the lesser of the designated restricted rent limit or ten percent (10%) below market rate within a 1 mile radius. • At least twenty percent (20%) of the affordable units must have annual rents plus utility allowance of no more than 30% of 30% AMI, and be reserved for very low income households earning less than 30% AMI.
• No more than fifteen (15%) of the affordable units may have annual rents plus utility allowance between 30% of 80% AMI and 30% of 120% AMI (Moderate-Income Units).
Priority will be given to projects that exceed the threshold affordability minimums. Affordability restrictions apply for the full term of the regulatory agreement, regardless of whether another subsidy source continues to be available.
2.3.2 Minimum Affordability – Ownership Projects
• One hundred percent 100% of units funded must be restricted as affordable. • The affordable units must have an average affordability level of 100% AMI or less. For example, in a 26 unit project, 10 units could be targeted to households at 120% AMI, 10 units at 80% AMI, and 6 units at 100% AMI.
• Priority will be given to projects targeting some units to households at 80% of AMI or below. • Households with incomes up to 120% of AMI are eligible for assisted units, provided the average affordability level of the affordable units is 100% of AMI or less (see example provided above).
See Attachment B for Affordable Home Prices.
2.4 FINANCING GUIDELINES
2.4.1 Minimum and Maximum Loan Amounts
• The maximum Housing Authority loan amount is forty percent (40%) of the total residential development cost of the project’s affordable units (those units subject to long term affordability restrictions).
• If applicable, the value of any Housing Authority land donations will be counted as part of the maximum allowable subsidy total.
• Please round requested loan amounts to $1,000 increments. • Other sources of appropriate financing must be identified, but not necessarily committed, at the time of application. Projects will be reviewed to ensure that only the minimum level of Housing Authority subsidy needed will be provided. All other sources of funding must be committed before closing of the Housing Authority loan.
Exhibit 1
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2.4.2 Construction Contingency
A minimum of 15% construction cost contingency for new construction and for rehabilitation projects is required.
2.4.3 Maximum Per-Unit Total Development Costs (TDC)
There is a maximum residential development cost of $495,000 per unit for projects receiving funding through this NOFA. The Housing Authority reserves the right in its sole discretion to reject any and all applications if total development costs, as provided in an application’s development budget, exceed this amount. The Housing Authority reserves the right to increase the limit, however, in exceptional circumstances where the Housing Authority, in its sole discretion, determines that such increase will contribute to the Housing Authority’s goal of creating additional housing, including but not limited to situations where underground parking is being proposed.
2.5 DEVELOPER FEE LIMIT
The maximum Developer Fee shall be the same as the maximum allowed under the State Tax Credit Allocation Committee regulations for those projects that have been or will be awarded Low-Income Housing Tax Credits, as adopted at the time this NOFA was issued. For projects not receiving Low- Income Housing Tax Credits, the maximum Developer Fee shall be the same as the maximum allowed under the State of California Housing and Community Development 2017 Uniform Multifamily Regulations.
3.0 Evaluation Criteria
Complete applications will be scored in the following categories. Maximum points in each category are noted.
Please note that points will be rounded to the nearest ¼ point. Projects scoring less than 50% of possible points are unlikely to be awarded funding. In all cases, points are awarded for exceeding, rather than meeting, the threshold requirements for the category.
The discussion following contains a more detailed description of the criteria.
Criteria Points Available
1. Readiness 45
a. Indicated and Sufficient Evidence of Funding Sources b. Innovative Financing
c. Leveraging
d. Funding Commitments
e. Site Control and Anticipation of Entitlements
2 8
10 10
15 2. Developer Experience and Capacity 35
a. Project History
b. Developer Experience, Capacity & Staffing
c. Developer Financial Strength
d. Strength of the Development Team
e. Bonus Point Category
10 10
5 4
6 3. Project Budget 15
4. Amenities & Community Space 5
Exhibit 1
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Criteria Points Available
5. Location 25
a. Geographic Equity
b. Neighborhood Revitalization
c. Proximity to Nearby Amenity: Public Transit
d. Proximity to Nearby Amenity: School
e. Proximity to Nearby Amenity: Community Center or Public Park f. Proximity to Nearby Amenity: Grocery Store
5 5
5 2
4 4
6. Target Population and Project Attributes 15
a. Income Targeting
b. Unit Size
10 5
7. Collaboration & Planning 15
a. Local Planning Efforts
b. Community Engagement
c. Addressing Community Needs
4 6
5 Total Points Available 155
3.1 READINESS (MAXIMUM 45 POINTS)
a. All sources and uses of funds are clearly indicated and sufficient evidence of funding availability and/or commitments are included (2 points). b. Innovative Financing – Narrative description of the financing approach to fund the project (8 points).
i. Describe the Development Team’s financing approach to the project and present preliminary financing plan that shows a feasible project consistent with current Housing Authority underwriting practice.
ii. Include the Team’s process for structuring the project and controlling development costs. Including cost fluctuations due to COVID (the pandemic) iii. Include innovative strategies intended to minimize Housing Authority’s projected capital gap financing.
iv. Applicants must provide a narrative that describes any innovative (i.e., non- standard, routine or commonly used) direct or indirect cost-cutting strategies relevant to overall development, construction or operating expenses. c. Leveraging – Degree to which outside funding will be pursued (10 points).
The Housing Authority’s federal, state and local capital funds are intended to fill the gap in a project’s financial structure after all other available sources of housing capital funds are utilized. Such “other available funds” may include, but are not limited to: private bank loans, equity from the sale of low-income housing tax credits, owner equity, sale of tax-exempt Multifamily Housing Revenue bonds, state and federal funding, grants and donations, and other public and private sources of funds. Projects must demonstrate that they have applied (or will apply within the next 90 days after application submission) for additional sources other than senior debt, tax credits and bonds and Housing Authority gap financing. Applicants must provide the following supporting documents, including but not limited to:
i. Copies of award letters, where applicable,
Exhibit 1
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ii. Letter of Intent (from the tax credit investor),
iii. Term Sheet from bank,
iv. If the project has not yet applied to other available funds, but will apply within the next 90 days after submission to this NOFA, this must be included in the Project Timeline.
The above list provides examples and is not an exhaustive list. d. Funding Commitments – degree to which outside funding has been committed (10 points).
i. Points will be given based on non-Housing Authority financing currently committed to the project, as follows:
Leveraged Financial Resources as a
Percent of Total Development Cost
Greater than:
Points
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 2
3 4
5 6
7 8
9 10
e. Site Control and Anticipation of Entitlements – Applicant has site control, and the project is anticipated to receive entitlements and community support by showing one of the following (15 points):
i. Entitlement Application Submittal to City of National City or Preliminary Review Request. Applicants must provide proof of submission, such as a copy of the invoice from the City of National City.
ii. Entitlement Approvals or Confirmation from City of National City that project may proceed with staff approvals. Applicants must submit a clear and legible scanned copy of the approved development permit, variance, or other discretionary approval from the City. Should the project be ministerial/by right, the applicant shall submit evidence of this by providing verification of zoning for the parcel(s) and the APN’s, and a parcel map. The Housing Authority may request additional documentation
3.2 DEVELOPER EXPERIENCE AND CAPACITY (MAXIMUM 35 POINTS) f. Project History (10 points)
i. Points are awarded for completing an affordable housing projects on time and within budget within the last ten years (by the Developer, not other team members). 2 points will be awarded for each completed project (up to 6 points). ii. Points will be given for completing a project similar to the proposed project by the Developer within the last ten years. 2 points will be awarded for each additional similar project (up to 4 points).
Exhibit 1
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iii. If the developer is a joint venture, projects will be scored based on the experience of the lead developer. Where partners have approximately equal participation, the individual scores of each partner will be averaged. g. Developer Experience, Capacity & Staffing (10 points) i. Points are awarded based on evidence that the staff, including the Project Manager and supervisory staff, proposed to work on the current proposal have the necessary experience and that the organization has adequate staffing capacity to undertake the project.
ii. Developer/Applicant Experience: Must detail demonstrated, successful experience in developing affordable rental housing, successful operation of completed developments, capacity to perform the administrative, managerial, and operational functions to oversee the work necessary to successfully complete the proposed development. The Housing Authority reserves the right to limit the number of projects funded and under construction. The Housing Authority reserves the right to require third-party review of the developer/applicant’s experience and capacity.
iii. General Contractor Experience: Must include a resume (of the general contractor) that demonstrates successful experience in projects that are similar in type, scale and complexity to proposed project.
iv. Construction Management Experience: Must include a resume of the construction manager that demonstrates the necessary construction management experience to complete the proposed multifamily rehabilitation project. At a minimum, the resume must include the length of time in the field of construction management of multifamily housing and a list of projects, tasks and or experiences, including occupied in-place rehabilitation that demonstrate the necessary construction management experience to complete the proposed renovation project.
v. Project Management Experience: Must include a resume of the project manager that demonstrates a capacity to oversee the project. The resume must include the length of time managing affordable housing, and specific examples of projects managed, tasks and or experiences that demonstrate the necessary project management experience required to complete the proposed project. vi. Property Management Experience: Must include a resume of the project manager that includes, but is not limited to the following details:
• A list of properties currently managing - categories (supportive, large family, etc.) of affordable housing managed by subject organization, • Examples of experience with specific affordable housing finance and corresponding regulatory programs to date, and\
• Subject organization experience providing property management and or regulatory compliance and reporting services to projects similar to that of the proposed project.
h. Developer Financial Strength (5 points)
Exhibit 1
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i. Points are awarded based on evidence that the Developer is financially sound and will be able to sustain the costs of effectively following through with the current proposal, based on review of current interim and previous years audited financial statements.
ii. Provide audited financial statements for the development team for the past two years. If audited financial statements are not available, please submit evidence of the development team’s financial capacity to develop the proposed project (including income statements, balance sheets, statement of owner’s equity, and cash flow statements, etc.) for the three most recent years. i. Strength of Development Team (4 points)
i. Points are awarded based on the provided experience of the Development Team members (Developer Principals, Property Manager, Attorney, Architect, Financial Consultant, etc.) ..
j. Bonus Point Category (maximum of 6 points)
i. 2 points will be awarded if within a joint venture partnership, the less experienced partner is allowed first right of refusal to purchase the land and/or building after the 15-year tax credit compliance period ii. 2 points will be awarded for projects that align with Housing Authority’s goals, objectives, and actions outlined in the Housing Authority’s Strategic Housing Plan and 2021-2029 Housing Element
iii. 2 points will be awarded for committing ground floor commercial space at below market rates (e.g., non-profit organizations and arts & cultural users)
3.3 PROJECT BUDGET (MAXIMUM 15 POINTS)
k. Project budget is complete and anticipated development costs are reasonable.
3.4 AMENITIES & COMMUNITY SPACE (MAXIMUM 5 POINTS)
l. The project has adequate open space and community serving areas such as a computer room, social services office space, bike storage, and community room with kitchen.
3.5 LOCATION (MAXIMUM 25 POINTS)
Projects will be awarded a maximum of 25 points. Distance must be measured using a standardized radius from the development site to the target amenity unless that line crosses a significant physical barrier or barriers. Such barriers include highways, railroad tracks, regional parks, golf courses, or any other feature that significantly disrupts the pedestrian walking pattern between the development site and the amenity. The radius line may be struck from the corner of development site nearest the target amenity, to the nearest corner of the target amenity site. However, a radius line shall not be struck from the end of an entry drive or on-site access road that extends from the central portion of the site itself by 250 feet or more. Rather, the line shall be struck from the nearest corner of the site’s central portion. Where an amenity such as a grocery store resides within a larger shopping complex or commercial strip, the radius line must be measured to the amenity exterior wall, rather than the site boundary. The resulting distance shall be reduced in such instances by 250 feet to account for close-in parking. m. Geographic Equity: (5 points)
Exhibit 1
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i. 5 points will be awarded for rental projects located in census tracts with percentage of low/mod income persons at or above 51%, as shown in Attachment C (Map of Low and Moderate-Income Areas in National City). n. Neighborhood Revitalization: (maximum 5 points)
i. Points will be awarded to projects which include or combine the following, as evidenced in the Neighborhood Narrative and Revitalization Description of the Application.
• Contribute to an existing or planned pattern of targeted redevelopment such as a Specific Plan Area or Priority Development Area (housing or commercial development, streetscape improvements, etc.) occurring within 1/4 mile of the project site.
o. Proximity to High-Quality Transit: (maximum 5 points) i. Applicant provides a map with pin drop of the property to the transit in Google Maps, using walking directions.
ii. Projects will be awarded 5 points if they are within 0.5 miles of a bus station, light rail station, or bus stop that provides service at least every 30 minutes during the hours of 7-9 a.m. and 4-6 p.m., Monday through Friday. iii. If frequency and hours cannot be met but the project is still within 0.5 miles, 3 points will be awarded.
p. Proximity to School: (2 points)
i. Applicant provides a map with pin drop of the property to the identified school(s) in Google Maps, using walking directions.
ii. Projects will be awarded 2 points if they are within 0.5 miles of a school. q. Proximity to Community Center or Public Park: (maximum 4 points) i. Applicant provides a map with pin drop of the property to the identified community center or public park in Google Maps, using walking directions. ii. Projects will be awarded 2 points if they are within 0.5 miles of a public library or community center that is open at least 5 days a week to the general public. iii. Projects will be awarded 2 points if they are within 0.5 miles of a public park. r. Proximity to Grocery Store: (maximum 4 points)
i. Applicant provides a map with pin drop of the property to the identified full- scale grocery store in Google Maps, using walking directions. ii. Projects will be awarded 4 points if they are within 0.25 miles of a full-scale grocery store or include a food market as part of the development. iii. Projects will be awarded 2 points if they are within 0.50 miles of a grocery store.
3.6 TARGET POPULATION AND PROJECT ATTRIBUTES (maximum 15 points) s. Income Targeting: (10 points)
i. Points are awarded for rental projects providing more low income rental units than the threshold requirement. For the threshold requirement, 20% of units must be set aside serving extremely low income households with rents no more than 30% of 30% of AMI.
• 2 points will be awarded for each additional full one-percent of affordable units with restricted rents at or below 30% of 20% of AMI.
Exhibit 1
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• 1 point will be awarded for each additional full one-percent of affordable units with restricted rents at or below 30% of 30% of AMI. t. Unit Size: Number of larger units (5 points)
i. Points are awarded for the number of units provided with 2, 3, or more bedrooms. Family projects are required to include a threshold minimum 15% of 3+ bedroom units.
ii. ½ point will be awarded for each 20% of units that have 2 bedrooms. iii. 1 point will be awarded for each additional 5% of units with 3 bedrooms or larger (above the minimum threshold).
3.7 COLLABORATION AND PLANNING (MAXIMUM 15 POINTS)
u. Local Planning Efforts (4 Points)
i. 0 points will be awarded if there is no identified local plan or planning effort that the Project implements.
ii. Up to 2 points will be awarded if there are vague answers regarding local plans or planning efforts being implemented.
iii. Up to 4 points will be awarded if there is explicit detail on integration of local planning efforts that include multiple program goals (e.g., housing, active transportation, community connectivity, transit oriented development) in the Project.
v. Community Engagement (6 points)
i. 0 points will be awarded if CBOS and residents were not informed of or involved in Project development. No community outreach plan is laid out for future engagement.
ii. Up to 2 points will be awarded if CBOs and residents were informed of, but not involved in, Project development. Plan is laid out for future engagement, but provides no or minimal details.
iii. Up to 4 points will be awarded if CBOs and residents were brought into Project development process after Project component selection. Plan is laid out for future engagement but does not consider how to ensure broad CBO or resident participation.
iv. Up to 6 points will be awarded if CBOs and residents were involved from initial visioning of the Project, and a clear, detailed plan is laid out for how they will be engaged as Project moves forward. There were strong efforts made by the applicant to create opportunities for involvement accessible to all Project Area residents, including the area’s most vulnerable populations. w. Addressing Community Needs (5 points)
i. 0 points will be awarded if no engagement was conducted to identify community needs was performed. Community needs beyond housing and transportation are not addressed.
ii. Up to 1 points will be awarded if no or limited engagement was conducted to identify and meet community needs. Community needs beyond housing and transportation are not addressed.
Exhibit 1
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iii. Up to 3 points will be awarded if engagement was conducted to identify community needs, and requested community input on how to meet those needs.
iv. Up to 5 points will be awarded if an in-depth engagement process was conducted to identify community needs, and incorporated community input on how to meet those needs.
4.0 Application
4.1 COVER LETTER
The proposal must include a cover letter, limited to two pages, on official letterhead that provides a description of the project. The letter must also provide contact information for the person with authority to negotiate on behalf of the development team. The Applicant must certify that the proposal response and exhibits are true and correct at the time of submittal. An unsigned and/or undated submission will not be considered.
The cover letter should include but is not limited to the following:
• Summary Information
o Amount requested
o Number and size of units (number of bedrooms)
o Target population served
o Location
o Total Development cost
• Site Information
o Current use of site
o Distinguished features
o Any environmental issues
• Physical Characteristics
o Type of construction
o Number of stories
o Location
• Amenities and Services
o Common facilities and amenities
o Resident service programs (if included)
• Funding Type Limitations
o If the use of federal funds creates a significant feasibility problem, this should be explained in the application cover letter.
Application Checklist Item(s): Narrative Cover Letter
4.2 APPLICATION
An application form is provided as Attachment E and should be included in your application along with the following:
Exhibit 1
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4.2.1 Application Information & Project Summary
If the Applicant is not acting as the developer, please provide all of the requested information for the developer as well as for the Applicant. If the developer involves multiple entities, please provide all the requested information for each entity, and identify the entity that will serve as the “lead” organization.
Include a summary of the project including project name, site address, existing conditions, project’s housing units mix, and other components identified in the application form.
Application Checklist Item(s): Application Information & Project Summary in Application Form
4.2.2 Development Team Members Resume & Capacity
Include resumes of development team members. Resumes should provide the name, address, contact person, telephone number, and e-mail address for members of the proposed project team. Identify the developer principals and project manager, architect, civil engineer, contractor, construction manager, property manager (if applicable), owner (if different than developer) and social services provider (if applicable). If known, identify the lenders, attorneys, accountants, subcontractors, and consultants.
Resumes of the development team members should also include detailed description of experience.
Include Attachment H (Developer Capacity Worksheets) for the development team members. These worksheets should provide name of project staff, their role in other current or planned developments, years of relevant experience, and years with this developer.
Include an organizational chart the partnership that shows all the relative equity relationships of the corporate entities that comprise the overall organization.
Application Checklist Item(s): Development Team Resumes & References, Developer Capacity Worksheets, Organizational Chart
4.2.3 Applicant Experience and References
Provide a description of experience of the development team in the following form:
• At least one project and no more than five projects that are similar to the project being proposed. See Attachment F for Developer Experience Worksheets. The following information should be provided for each project:
o Site location;
o A narrative description of the project’s characteristics; o Number of units in the project;
o The total project costs;
o The income and affordability restrictions that were imposed on the project; o Identification of any public financial assistance that was provided to the project; o The role the Applicant played in the project; and
o Contact information for a representative of the jurisdiction in which the project is located.
Application Checklist Item(s): Developer Experience Worksheets Exhibit 1
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4.2.4 Site Control and Demonstration of Value
Include evidence of site control, and provide a real estate appraisal or current tax documentation that substantiates the value of the property. Applicants must have control of the project site through one of the following methods:
• Fee title,
• Option to purchase,
• Land sales contract,
• Leasehold with development provisions,
• Purchase and Sale Agreement, or
• Any other enforceable instrument.
Application Checklist Item(s): Evidence of Site Control, Real estate appraisal or current tax documentation that substantiates the value of the property
4.2.5 Zoning
At the time of application, applicants must demonstrate that the project’s zoning will permit the scope of development as proposed. If the project’s zoning will not permit the scope of development proposed, the applicant must demonstrate to Housing Authority’s satisfaction that all discretionary land use approvals can be granted within 180 days of the application submittal.
Applicants must:
• locate the project site on the most recent City zoning map; and • provide a copy of the Verification of Zoning and Land Use Entitlement Approvals that is submitted for tax credit applications; or
• A zoning confirmation letter from the City; and/or
• Explain how you plan to obtain the necessary approvals within 180 Application Checklist Item(s): Project Zoning Map and Evidence of Entitlement Approvals
4.2.5 Tenant Relocation
If the project is occupied at the time of proposal submission, include a Tenant Relocation Plan. The developer is responsible for providing tenant relocation assistance should the proposed project require or result in the temporary or permanent displacement of current tenants. The Plan must include, at a minimum, the following:
• Total number of households in the project and number of households to be permanently or temporarily displaced.
• A list and description of all households to be temporarily or permanently displaced (include current address, name, household size, and ages of the household members). • Circumstances under which the displacement is necessary. • Description of assistance to be provided and a schedule for assistance. • Source(s) of funds to be used for relocation assistance. • Procedures/methods by which those being displaced will be advised of their rights and available assistance.
Exhibit 1
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Application Checklist Item(s): Tenant Relocation Plan (if applicable)
4.2.6 Evidence of Construction Scope and Cost Estimate
Applicants must provide:
a. A detailed Scope of Work (SOW). The SOW for projects with rehabilitation must include areas that need assistance, especially all health and safety issues; and b. A Third-Party Cost Estimate that includes, at a minimum, the items identified in the SOW.
Application Checklist Item(s): Detailed Scope of Work and Third-Party Cost Estimate
4.2.7 Commercial Space Funding
Housing Authority capital funds cannot be used to fund commercial/retail space. Applications must show non-Housing Authority sources of funds for any commercial space in the project (including acquisition cost and/or rehabilitation cost) on the project pro forma or state in the General Application narrative that Housing funds will not be used as a source for commercial/retail spaces.
Related application checklist Items: Pro Forma Analysis and/or Project Narrative
4.2.8 Other Funding Sources
Identify the other funding sources proposed to be used to pay for the project costs. Identify any funding sources that have already been committed to the project, funds for which applications have been submitted, and funds for which applications are anticipated to be submitted. Applicants should maximize the use of available state and county funding to reduce the subsidy needs from the city. The total funding sources, including the proposed loan, must equal the estimated development costs for the proposed project.
Application Checklist Item(s): Other Funding Sources Supporting Documentation
4.2.9 Project Timeline
Applicants must provide a timeline for the proposed project that includes the projected date of all major development benchmarks related to financing, entitlements, community approvals, construction, and lease up. If the development timing is anticipated to vary across several properties to be involved in the project, provide a development timing schedule for each property Application Checklist Item(s): Project Timeline in Application Form
4.3 PROJECT NARRATIVE
Provide a project narrative for the questions listed below. The project narrative is a word-processed document of not more than 10 single-spaced pages responding to the questions listed below. The document should be a font size of 10 with 1-inch margins. • Question 1 - The purpose and the scope of the project. • Question 2 - Identify the neighborhood the project will serve. o Include narrative about: The current uses of the project site and surrounding area; A general description of the neighborhood character including typical land uses; Local building construction type and condition.
o All appropriate land use designations must be satisfied prior to financing close.
Exhibit 1
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• Question 3 - Describe how the proposed project will contribute to the overall enhancement and revitalization of the neighborhood.
o Specifically, discuss: How the proposed project will impact its immediate surroundings.
The Specific Plan Area or a Priority Development Area, identify the Area, if applicable.
How the proposed project will prevent the displacement of low-income residents. The average income of the census tract in which the project is located • Question 4 - Document neighborhood services (public transportation, schools, shopping, etc.). • Question 5 - Identify what local planning efforts the Project implements, and if applicable, describe what particular components of the Project are derived from a local plan. • Question 6 - Describe how the project aligns with the Housing Authority’s Strategic Housing Plan and 2021-2029 Housing Element
• Question 7 - Describe how community-based organizations and local residents have been meaningfully involved in the visioning and development of this Project. Explain in which stage(s) of the process community members and CBOs have been and will be engaged. Describe efforts to involve Disadvantaged and/or Low-Income Community residents, including how meetings were advertised and made accessible.
• Question 8 - Discuss the process and timing to receive entitlement approvals. If available, provide proof of entitlement.
• Question 9 - Describe the innovative strategies for the financing approach and processing for structuring the project and controlling development costs to fund the proposed project.
Application Checklist Item(s): Project Narrative
4.4 PROJECT VICINITY MAP
A map showing the project site is required. The map should include a conceptual site plan for a new construction project. The map should clearly delineate the project site boundaries, major cross streets, and surrounding neighborhoods.
Application Checklist Item(s): Project Vicinity Map and Conceptual Plans
4.4.1 Project Maps of High-Quality Transit and Community Services A map with pin drop of the property to the transit in Google Maps, using walking directions. A map with pin drop of the property, to the Community Services (school, community center or public park, full-scale grocery store) in Google Maps, using walking directions.
Application Checklist Item(s): High-Quality Transit Project Map and Community Services Project Map(s)
4.5 PROJECT PRO FORMA
Include a pro forma analysis for the proposed project. The pro forma analysis should include the following:
• Estimated Development Costs
o Include Direct, Indirect, and Financing Costs
• Estimated Annual Net Operating Income for 55 years
o Include monthly and annual revenue by income unit
Exhibit 1
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o Include Annual expenses such as general operating expenses, property tax expense, reserves deposits
• Sources of Funds Statement
o Include Construction Period Financing Sources
o Include Permanent Funding Sources
Applicants should not include project base vouchers in the pro forma unless there is a standing commitment between applicant and the Housing Authority.
Application Checklist Item(s): Pro Forma Analysis
4.6 OUTREACH EFFORTS
Include an Outreach Plan and evidence that a minimum level of community outreach has been achieved or will be achieved. Applicants must contact neighborhood organizations in the vicinity of the proposed development.
The Outreach Plan should describe how you will build support for your project and address community concern, including a list of all individuals and organizations with whom you have met or will meet to discuss the project, and the approximate dates of each phase of the plan.
The evidence of community outreach plan can include the following:
• Copy of announcements of the meetings (flyers, advertisements, etc.) • Copy of the agenda for the meetings
• Copy of handouts or other information used, including reductions of material presented on easel boards
• Sign-in sheets from community meetings
• Minutes of the community meeting
Application Checklist Item(s): Outreach plan
4.7 NEIGHBORHOOD AND LOCAL GOVERNMENT SUPPORT
Include letters of support from local organizations and governmental entities within the area of the proposed project. The Housing Authority cannot provide a letter of support.
Application Checklist Item(s): Support Letters
4.8 PRELIMINARY MANAGEMENT AND MARKETING PLAN
A Preliminary Management Plan and Marketing Plan or Marketing and Sales Plan must be submitted in the application.
For rental projects, a Final Management and Marketing Plan will be required 180 days prior to construction completion and a Management Contract must be submitted to the Housing Authority 90 days prior to construction completion. The final Marketing Plan must be approved prior to beginning rent-up activities, including marketing flyers and application materials.
Exhibit 1
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For ownership projects, the Final Marketing and Sales Plan must be approved prior to commencement of construction and marketing of units. Developers must include pre-purchase homebuyer counseling, offer post-purchase counseling for at least one year, and provide one year home warranties.
Application Checklist Item(s): Marketing Plan
4.9 MARKET DEMAND
Applicants must verify the market demand for the proposed housing by providing a brief market demand narrative and include market study, rental survey, recent sales comparables, or an alternative acceptable to the Housing Authority. The market demand narrative is a word-processed document of not more than 3 single-spaced pages for rental projects and 4 single-spaced pages for ownership projects responding to the questions listed below. The document should be a font size of 10 with 1-inch margins.
• Question 1 - Describe how the rent or sales price survey provided in the application demonstrates that there is a strong demand for the proposed project and how the project will ensure lease-up or sales on schedule.
• Question 2 - (Ownership projects) Provide an explanation of how you will ensure that homes will be in contract with a buyer within 6 months of construction completion. • Question 3 - Describe how the proposed development may impact demand for other existing affordable housing developments in the market area.
• Question 4 - Provide other evidence of need for the project, such as how the proposed project provides for needed housing as identified in the City of National City's 2021-2029 Housing Element, or other evidence of market demand.
All projects must also provide a market study or survey, as described below:
Ownership Projects: Provide comparable sales prices for recently sold homes within two miles similar in square footage and unit type to the proposed units, or provide a market study, that is no more than 1 year old. Applicants may include lists of recently sold homes from websites such as www.zillow.com or www.realestateabc.com (whichever site has the most recent sales), or local newspaper or other listings of recent home sales. Proposed prices should be sufficiently below market prices.
Rental Projects: A market study or rental survey must be submitted that is no more than 1 year old.
Rental surveys do not need to be completed by a third-party consultant and can be completed in lieu of a market study at the time of application. The rental survey should include a summary of the closest three affordable and three market rate comparables, including their distance from the project, population served, number of units by bedroom size, rent by unit size, service and on-site amenities.
Mixed Use Projects: In addition to the above, also provide:
• Evidence of demand for commercial/retail space and marketability of space, or at least half the commercial/retail space pre-leased;
• Information from brokers on vacancy rates, turnover rates, and market rents in the neighborhood;
• Evaluation of the neighborhood's retail environment and relative merits of the newly proposed commercial space.
Exhibit 1
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If your organization maintains a waiting list of individuals interested in renting a unit from your organization, indicate how many persons or families are on the waiting list and how many of those persons or families are prequalified. In trying to meet local housing needs, the City adopted a local preference policy (Resolution No. 2016-38) that gives preference to applicant households that are currently residents of National City to the maximum extent allowed by law to rent new affordable housing development projects in the City of National City for the initial lease-up of all units restricted at or below 80% of AMI.
Application Checklist Item(s): Market Demand Narrative and Market Demand Evidence
4.10 APPLICANT FINANCIAL STATEMENTS/CAPACITY
Provide audited financial statements for the development team for the past two years. If audited financial statements are not available, please submit evidence of the development team’s financial capacity to develop the proposed project (including income statements, balance sheets, statement of owner’s equity, and cash flow statements, etc.) for the three most recent years.
Application Checklist Item(s): Financial Statements
5.0 Application Attachments
Attachment A – Area Median Income Limits for San Diego County, CTCAC Rent Limits, Monthly Utility Allowances
Attachment B – Affordable Home Price
Attachment C – Map of Low and Moderate-Income Areas in National City Attachment C – Map of Home Ownership Rates in National City Attachment D – Application Checklist
Attachment E – Application Form
Attachment F – Developer Experience Worksheets
Attachment G – Developer Capacity Worksheets
Exhibit 1
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ATTACHMENT A – AREA MEDIAN INCOME LIMITS FOR SAN DIEGO COUNTY, CTCAC RENT
LIMITS, MONTHLY UTILITY ALLOWANCES
Table 2. Area Median Income Limits for San Diego County by Household Size (2021) Note: *Area Median Income listed above is for 2021, and new limits are released each year. To obtain updated information, go to the HUD Exchange and search for income limits for the San Diego area.
Exhibit 1
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Table 3. California Tax Credit Allocation Committee 2021 Rent Limits for San Diego County
Source: California Tax Credit Allocation Committee 2021 Rent Limits Post 4/1/21+ Table 4. Monthly Utility Allowance
Source: Housing Authority of the City of National City Housing Choice Voucher Program
Exhibit 1
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ATTACHMENT B – AFFORDABLE HOME PRICE
Exhibit 1
337 of 384
ATTACHMENT C – MAP OF LOW AND MODERATE-INCOME AREAS IN NATIONAL CITY
Exhibit 1
338 of 384
ATTACHMENT D – APPLICATION CHECKLIST
Application Item Yes No Not
Applicable Comments
Narrative Cover Letter
Application Form
Development Team Resumes
Developer Capacity Worksheets
(NOFA Attachment G)
Organizational Chart
Developer Experience Worksheets
(NOFA Attachment F)
Project Zoning Map
Evidence of Entitlement Approvals
Evidence of Site Control
Real estate appraisal or current tax
documentation that substantiates the
value of the property
Tenant Relocation Plan (Temporary)
Tenant Relocation Plan (Permanent)
Project Vicinity Map
Conceptual Plans
Site Photos
High-Quality Transit Project Map
Community Services Project Map(s)
Outreach Plan
Support Letters
Marketing Plan
Pro Forma Analysis
Detailed Scope of Work
Third-Party Cost Estimate
Other Funding Sources Supporting
Documentation
Project Narrative
Market Demand Narrative
Market Demand Evidence
Financial Statements
Exhibit 1
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ATTACHMENT E – APPLICATION FORM
Exhibit 1
340 of 384
APPLICANT INFORMATION
Applicant Name:
Identify Applicant: (Check All That Apply)
☐ Applicant is
current owner
and will retain
ownership.
☐ Applicant is the
project developer
and will be part of
the final
ownership entity.
☐ Applicant is the
project developer
and will not be
part of the final
ownership entity
for the project.
☐ Other (Please
Specify):
Address:
City: State: Zip Code:
Contact Person:
Phone Number: Email:
DEVELOPMENT TEAM MEMBERS
Development Team Structure: (Check All That Apply)
☐ Partnership ☐ Corporation ☐ LLC ☐ Other (Please Specify):
Lead
Organization:
Attachments:
☐ Resumes of the Development Team Members
• Information should include name, address, contact person, telephone number, and e-mail address for members of the proposed project team.
• Identify the developer principals and project manager, architect, civil engineer, contractor, owner (if different than developer) and social services provider (if applicable). • If known, identify the lenders, attorneys, accountants, subcontractors, and consultants. • Resumes should include detailed description of experience. ☐ NOFA Attachment G (Developer Capacity Worksheets) for the development team members ☐ Organizational Chart
DEVELOPER EXPERIENCE WORKSHEETS
Attachments:
☐ NOFA Attachment F (Developer Experience Worksheets)
Exhibit 1
341 of 384
PROJECT SUMMARY
Project Name:
Site Information
Site Address:
City: State: Zip Code:
Census Tract No.: Parcel
No:
Description of
Existing
Conditions:
Description of
Environmental
Issues:
☐ Attach Project Zoning Map
☐ Attach Evidence of Entitlement Approvals (Check All That Are Attached) ☐ Copy of the Verification of Zoning and Land Use Entitlement Approvals that is submitted for tax credit applications
☐ Zoning confirmation letter from the City
If the project’s zoning will not permit the scope of development proposed, the applicant must demonstrate to Housing Authority’s satisfaction that all discretionary land use approvals can be granted within 180 days of the application submittal. Explain how you plan to obtain the necessary approvals within 180.
(1,000 character limit)
(1,000 character limit)
(1,000 character limit)
Exhibit 1
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PROJECT SUMMARY (continued)
Current Site Use:
(Check All That Apply)
☐ Residential
# of Existing Units (if applicable):
☐ Commercial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
If occupied, briefly
describe uses:
☐ Industrial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
☐ Parking Lot
☐ In Use
☐ Not In Use
# of Parking Spaces:
☐ Vacant Lot
Site Size:
Site Control: ☐ Yes ☐ No
Form of Site Control:
☐ Current
Owner
☐ Purchase
Agreement
☐ Option ☐ Other (Please Specify):
☐ Attach evidence of site control.
☐ Attach a real estate appraisal or current tax documentation that substantiates the value of the property.
Tenant
Relocation: Temporary: ☐ Yes Permanent: ☐ Yes
☐ No ☐ No
☐ Attach Temporary and/or Permanent Tenant Relocation Plan (if applicable) If occupied, briefly
describe uses:
(500 character limit)
(500 character limit)
Exhibit 1
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PROJECT DESCRIPTION
Project Type:
(Check All That
Apply)
☐ Acquisition & Rehabilitation ☐ New Construction
Housing Type: (Check All That Apply)
☐ Family ☐ Seniors ☐ Special Needs ☐ Veterans ☐ Other (Please Specify):
Construction
Type (if new
construction):
Amenities:
Total Number of
Housing Units:
Total Number of
Affordable Units:
Total Number of
Bedrooms:
Sq. Ft. of Gross
Building Area:
# of Parking Spaces: Sq. Ft. of Net Building
Area:
Unit Breakdown
Unit Mix: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
# of Units
Unit Sizes
Affordability: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
Extremely Low
Very Low
Low
Total
Attachments:
☐ Project Vicinity Map
☐ Conceptual Plans
☐ Site Photos
☐ High-Quality Transit Project Map
☐ Community Services Project Map(s)
☐ Outreach Plan
☐ Support Letters
☐ Marketing Plan
PROJECT PRO FORMA
Attachments:
☐ Pro Forma Analysis
Exhibit 1
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FUNDING INFORMATION
Amount of Funds
Requested:
Other Housing
Authority Fund
Previously
Received, if any:
Total
Development
Costs:
Affordable
Residential Only
Development
Costs:
Attachments:
☐ Detailed Scope of Work
☐ Third-Party Cost Estimate
OTHER EXPECTED FUNDING SOURCES
Source Name Amount Repayment Terms Application Status / Award Dates
Attachments:
☐ Other Funding Sources Supporting Documentation
PROJECT TIMELINE
Milestone Proposed Date
(Month Year)
City Approval
All Funding Sources Awarded
Environmental Review & Assessment Completed
Commencement of Construction
Construction Completed
Exhibit 1
345 of 384
PROJECT NARRATIVE
Attachments:
☐ Project Narrative
The project narrative is a word-processed document of not more than 10 single-spaced pages responding to the questions listed in the NOFA. The document should be a font size of 10 with 1- inch margins.
MARKET DEMAND
Attachments:
☐ Market Demand Narrative
The market demand narrative is a word-processed document of not more than 3 single-spaced pages for rental projects and 4 single-spaced pages for ownership projects responding to the questions listed in the NOFA. The document should be a font size of 10 with 1-inch margins. ☐ Market Demand Evidence (Study or Survey)
Exhibit 1
346 of 384
ATTACHMENT F – DEVELOPER EXPERIENCE WORKSHEETS
Provide the following information, in roughly the same format, for at least one project and no more than five projects developed within the last ten years.
Project Name:
Completion Date:
City: Total Project Cost:
Number of Units:
New Construction or Rehabilitation:
Project Characteristics:
Project Income and Affordability Restrictions:
Role of Applicant in Project:
Rental or Ownership:
Major Funding Sources
Source Name Amount
Project References - Individual in Local Governing Body most familiar with project. (Include Name, Organization, Title or Relationship to Project, Address, and Phone) Reference #1:
Reference #2:
Reference #3:
Exhibit 1
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Completion (Relative to schedule and budget at
start of construction) Budget
On time, delayed (by ___ months), etc. Project over budget by ___%
If applicable, explain why project was delayed or over budget:
Project Key Staff Name Current Title Role in Current Project Project Manager
Director of Real Estate
Development
Executive Director
Other
Other
Exhibit 1
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ATTACHMENT G – DEVELOPER CAPACITY WORKSHEETS
Provide the following information for project staff of the proposed project.
Project Staff Name
Role in other current or planned
developments
(For housing development staff, list role,
project name, number of units, start and
completion dates)
Years of
Relevant
Experience
Years with
this
Developer
Project
Manager
Director of
Real Estate
Development
Executive
Director
Asset
Manager
Provide the number of properties
overseen by the Asset Manager:
Controller /
CFO /
Accounting
Manager
Provide the number of accounting staff
employed by the developer:
Other
Other
Other
Exhibit 1
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Addendum No. 1
Community Development Commission-Housing Authority of the City of National City Notice of Funding Availability (NOFA) for Affordable Housing NOFA Issue Date: October 18, 2021
Addendum Issue Date: April 7, 2022
The Notice of Funding Availability (NOFA) for Affordable Housing is modified as outlined in this Addendum. The original NOFA remains in full effect except as modified by this Addendum, which is hereby made part of the NOFA. This Addendum is issued to inform applicants of an additional review process for their submitted application. In case of a conflict between requirements in the NOFA and this Addendum, this Addendum shall govern. All requirements set forth in the applicable portions in the NOFA Documents remain valid unless otherwise specified under this Addendum. The Housing Authority reserves the right to reject any and all submittals.
The following are additions to NOFA:
NOFA SECTION 1.0 OVERVIEW AND GENERAL INFORMATION
Application Selection
NOFA SECTION 1.1 PROCESS AND TIMELINE
• A financial feasibility and gap analysis that may need additional financial information from the submitted applications will be conducted to help determine the funding recommendations.
Consistent with the original terms of the NOFA, the financial feasibility and gap analysis will include prevailing wage requirements.
• No additional applications will be considered, and staff intends to present funding recommendations to City Council for approval by June 7, 2022. Recommendation for approval from staff does not constitute an award of a loan.
Exhibit 2
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1.0 Narrative Cover Letter
Exhibit 3
351 of 384
To Whom it May Concern,
Metropolitan Area Advisory Committee on Anti-Poverty ( “MAAC”), Managing General Partner (“MGP”) and lead Co -Developer for MAAC National City, LP (“ LP”), and MirKa Investments, LLC (“ MirKa”), Administrative General Partner (“AGP”) and Co-Developer of the LP, are proud to submit a response to the National City Affordable Housing NOFA for the Azuriik Project (“Project”). If awarded, the requested $10,000,000 in National City (“City”) funds will fill the remaining gap of the total development costs of $197,147,112, getting the City one step closer to bringing vital and quality intergenerational affordable homes to families, seniors, and people living with developmental disabilities.
MAAC brings over 36 years of experience in developing, operating, and managing affordable housing developments. They assisted in developing over 1,000 units spanning across San Diego County, serving a diverse population of families, veterans, individuals experience or at risk of experiencing homelessness, and other special needs populations. Additionally, MAAC is the service provider for their developments offering critical wrap around services for tenants seeking economic advancement, afterschool programs, and other programs and services tailored to each project's needs.
MirKa is an emerging San Diego based developer with rapid development trajectory. MirKa leadership has over 50 years of collective housing development experience in their leadership team. This includes financial oversight and p roject management of permanent supportive housing, affordable housing, mixed- use, and market rate development. Since inception 4 years ago, they have brought 7 projects totaling 415 affordable units to Southern California for a combined transaction volume of approximately $200 million. MirKa has established an impressive pipeline of 16 projects in Southern California with an anticipated 2,800 units of affordable housing anticipated within the next three to five years, with an estimated transition volume of approximately $1.5 billion.
A partnership between the LP and National City was established in 2019 for the submittal of an Affordable Housing Sustainable Community (AHSC) application. The partnership would provide critical funds to the City to expand nearby pedestrian walk and bikeways, as well as funding to support th e transit oriented urban infill Project.
The application received a competitive score of 69.33 and is expected to be awarded. The Project area established with this partnership includes the Project site, and the City’s expansion of the 8 th Street/Roosevelt Multi-Use Trail and Bayshore Bikeway. The affordable housing Project site is located on the northeast side of Roosevelt Avenue, between West 2nd Street and West 3 rd Street at 233 Roosevelt Avenue, in National City, San Diego County, California . The site totals 0.72 acres consisting of seven separate parcels . To the north of the site is a mixture of small commercial properties and single-family homes, to the south are commercial properties, adjacent to the east is a restaurant and its associated parking lot with Interstate 5 located to the west. The site is currently vacant with some uninhabitable vacant single family and multifamily structures which will be razed during site preparation. On and surrounding this site is natural vegetation including grasses, shrubs, and trees . There are no distinguished features or unique physical characteristics of the vacant project site. There are no known environmental concerns based on a Phase 1 Environmental Assessment Report completed in September of 2021.
The proposed Project will be a new construction Type 1, single 22-story, elevator- served, high rise mixed- use affordable housing building, containing 400 units and offering 11,253 square feet of indoor and outdoor community service facility space. The exterior will include window wall system, metal panel, and porcelain/stone tile.
The Project amenities will include a lobby, leasing and management offices, business center, community room with kitchen, community service facility space, exercise room, and centrally located laundry facilities. Exterior amenities will include an outdoor courtyard/picnic area, playground, vegetable garden, ping pong table, foosball table, 200 bicycle parking spaces, and 209 parking spaces in a combination of on-grade and subterranean parking garages.
Uni
ts will be set aside for households earning at or below 30, 50, 60, a nd 80 percent AMI, seniors (62+) earning at or below 30, 35, and 40 percent AMI. 10 percent of the senior units will be set aside for individuals living Affordable Housing Development Asset Management
Financial Engineering Project Finance
600 B Street, Suite 300
San Diego, CA 92101
(619) 323-1447
www.MirKaInvest.com
Exhibit 3
352 of 384
with disabilities earning at or below 30 percent AMI. 4 units will also be set aside for nonrevenue employee units.
There will be 119 OBR/ 1BA at 393 SQ. FT, 203 1BR/1BA at 529 SQ. FT, 49 2BR/1BA at 921 SQ. FT, and 29 3BR/2BA at 1,192 SQ. FT, for a total of 389 bedrooms.
The Azuriik will have two service Providers. MAAC , a nationally recognized economic development organization will offer workforce and economic development services, programs, after school programming, and other vital self -sufficiency resources and referrals to the residents. Additionally, ensuring residents can age in place and continue to live in their community throughout their golden years is a priority for the Project team. MAAC will offer specialized and individualized case management to seniors and will incorporate resources, activities, and workshops that support the senior community. This includes but is not limited to wellness classes, health advocacy information, and education and workforce training for those who are currently in or wish to return to the workforce. Additionally, referrals for meal delivery services, home health and personal care aids, and transportation will also be provided.
SDRC will offer extensive case management services to residents living with developmental disabilities who are clients or wish to be clients of the SDRC. Examples of services include a continuum of functional skills training that adult clien t may need to secure or maintain a self -sustaining level of self -sufficiency such as medical, dental, mental health, substance abuse, vocational training, personal safety and hygiene, financial management, cooking/meal preparation, transportation, and mobility training. Please see Exhibit 2 and Exhibit 2A included in this application for copies of service plans.
According to the 6th Cycle RHNA Allocation, National City has a need of approximately 5,400 new units of which 1,862 accounts for extremely low to moderate income households. If awarded, the Project would account for 22% of the required RHNA allocation. Additionally, quality and individualized services will be offered to all residents to assist with economic advancement, long term tenancy, and self-sufficiency. The Project will allow individuals living with disabilities and seniors to remain integrated into society and continue to contribute in meaningful ways which can help them gain a renewed sense of self -worth. The goal of the Project Team is to promote coordinated delivery of housing and support services through close coordination between all onsite staff, including Property Management, SDRC, and MAAC and to provide quality affordable homes that foster the success of the residents and the community.
If awarded, Arnulfo Manriquez, President and CEO of MAAC, Managing Member of MAAC National City, LLC, MGP of the LP and Kursat Misirlioglu, CEO of MirKa, AGP of the LP, have the authority to negotiate on behalf of development team. The applicant certifies that the proposal response and exhibits are true and correct at the time of submittal.
MAA
C National City LP, a California limited partnership
By: M i
rKa Investments, LLC, it’s Administrative General Partner By:
_______________
_____
Kursat Misirlioglu, CEO
[email protected]
619-599-3852
Exhibit 3
353 of 384
To Whom it May Concern,
Metropolitan Area Advisory Committee on Anti-Poverty (“MAAC”), Managing General Partner (“MGP”) and lead Co-Developer for MAAC National City, LP (“LP”), and MirKa Investments, LLC (“MirKa”), Administrative General
Partner (“AGP”) and Co-Developer of the LP, is proud to submit a response to the National City Affordable Housing NOFA for the Azuriik Project (“Project”). If awarded, the requested $10,000,000 in National City (“City”) funds will fill the remaining gap of the total development costs of $197,147,112, getting the City one step closer to bringing vital and quality intergenerational affordable homes to families, seniors, and people living with developmental disabilities.
MAAC brings over 36 years of experience in developing, operating, and managing Affordable housing developments. They assisted in developing over 1,000 units spanning across San Diego County, serving a diverse population of families, veterans, individuals experience or at risk of experiencing homelessness, and other special needs populations. Additionally, MAAC is the service provider for their developments offering critical wrap around services for tenants seeking economic advancement, afterschool programs, and other programs and services tailored to each project's needs.
MirKa is an emerging San Diego based developer with rapid development trajectory. MirKa leadership has over 50 years of collective housing development experience in their leadership team. This includes financial oversight and Project management of permanent supportive housing, affordable housing, mixed-use, and market rate development. Since inception 4 years ago, they have brought 7 projects totaling 415 affordable units to Southern California for a combined transaction volume of approximately $200 million. MirKa has established an impressive pipeline of 16 projects in Southern California with an anticipated 2,800 units of affordable housing anticipated within the next three to five years, with an estimated transition volume of approximately $1.5 billion.
A partnership between the LP and National City was established in 2019 for the submittal of an Affordable Housing Sustainable Community (AHSC) application. The partnership would provide critical funds to the City to expand nearby pedestrian walk and bi keways, as well as funding to support th e transit oriented urban infill Project.
The application received a competitive score of 69.33 and is expected to be awarded. The Project area established with this partnership includes the Project site, and the City ’s expansion of the 8 t h Street/Roosevelt Multi-Use Trail and
Bayshore Bikeway. The affordable housing Project site is located on the northeast side of Roosevelt Avenue, between West 2nd Street and West 3 rd Street at 233 Roosevelt Avenue, in National City, San Diego County, California. The site totals 0.72 acres consisting of seven separate parcels . To the north of the site is a mixture of small commercial properties and single-family homes, to the south are commercial properties, adjacent to the east is a restaurant and its associated parking lot with Interstate 5 located to the west. The site is currently vacant with some uninhabitable vacant single family and multifamily structures which will be razed during site preparation. On and surrounding this site is natural vegetation including grasses, shrubs, and trees. There are no distinguished features or unique physical characteristics of the vacant project site. There are no known environmental concerns based on a Phase 1 Environmental Assessment Report completed in September of 2021.
The proposed Project will be a new construction Type 1, single 22-story, elevator- served, high rise mixed- use affordable housing building, containing 400 units and offering 11,253 square feet of indoor and outdoor community service facility space. The exterior will include window wall system, metal panel, and porcelain/stone tile.
The Project amenities will include a lobby, leasing and management offices, business center, community room with kitchen, community service facility space, exercise room, and centrally located laundry facilities. Exterior amenities will include an outdoor courtyard/picnic area, playground, vegetable garden, ping pong table, foosball table, 200 bicycle parking spaces, and 209 parking spaces in a combination of on-grade and subterranean parking garages.
Units will be set aside for households earning at or below 30, 50, 60, and 80 percent AMI, seniors (62+) earning at or below 30, 35, and 40 percent AMI. 10 percent of the senior units will be set aside for individuals living with disabilities earning at or below 30 percent AMI. 4 units will also be set aside for nonrevenue employee units.
Exhibit 3
354 of 384
There will be 119 OBR/ 1BA at 393 SQ. FT, 203 1BR/1BA at 529 SQ. FT, 49 2BR/1BA at 921 SQ. FT, and 29 3BR/2BA at 1,192 SQ. FT, for a total of 389 bedrooms.
The Azuriik will have two service Providers. MAAC , a nationally recognized economic development organization will offer workforce and economic development services, programs, after school programming, and other vital self -sufficiency resources and referrals to the residents. Additionally, ensuring residents can age in place and continue to live in their community throughout their golden years is a priority for the Project team. MAAC will offer specialized and individualized case management to seniors and will incorporate resources, activities, and workshops that support the senior community. This includes but is not limited to wellness classes, health advocacy information, and education and workforce training for those who are currently in or wish to return to the workforce. Additionally, referrals for meal delivery services, home health and personal care aids, and transportation will also be provided.
SDRC will offer extensive case management services to residents living with developmental disabilities who are clients or wish to be clients of the SDRC. Examples of services include a continuum of functional skills training that adult clien t may need to secure or maintain a self -sustaining level of self -sufficiency such as medical, dental, mental health, substance abuse, vocational training, personal safety and hygiene, financial management, cooking/meal preparation, transportation, and mobility training. Please see Exhibit 2 and Exhibit 2A included in this application for copies of service plans.
According to the 6th Cycle RHNA Allocation, National City has a need of approximately 5,400 new units of which 1,862 accounts for extremely low to moderate income households. If awarded, the Project would account for 22% of the required RHNA allocation. Additionally, quality and individualized services will be offered to all residents to assist with economic advancement, long term tenancy, and self-sufficiency. The Project will allow individuals living with disabilities and seniors to remain integrated into society and continue to contribute in meaningful ways which can help them gain a renewed sense of self -worth. The goal of the Project Team is to promote coordinated delivery of housing and support services through close coordination between all onsite staff, including Property Management, SDRC, and MAAC and to provide quality affordable homes that foster the success of the residents and the community.
If awarded, Arnulfo Manriquez, President and CEO of MAAC, Managing Member of MAAC National City, LLC, MGP of the LP and Kursat Misirlioglu, CEO of MirKa, AGP of the LP, have the authority to negotiate on behalf of development team. The applicant certifies that the proposal response and exhibits are true and correct at the time of submittal.
MAAC National City LP, a California limited partnership By: MAAC National City LLC, a California limited liability company, its managing general partner By: Metropolitan Area Advisory Committee on Anti-Poverty of San Diego County, Inc, a California non-profit public benefit company, its managing member By:
Exhibit 3
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2.0 Application Form
Exhibit 3
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ATTACHMENT E – APPLICATION FORM
Exhibit 3
357 of 384
APPLICANT INFORMATION
Applicant Name:
Identify Applicant: (Check All That Apply)
☐ Applicant is
current owner
and will retain
ownership.
☐ Applicant is the
project developer
and will be part of
the final
ownership entity.
☐ Applicant is the
project developer
and will not be
part of the final
ownership entity
for the project.
☐ Other (Please
Specify):
Address:
City: State: Zip Code:
Contact Person:
Phone Number: Email:
DEVELOPMENT TEAM MEMBERS
Development Team Structure: (Check All That Apply)
☐ Partnership ☐ Corporation ☐ LLC ☐ Other (Please Specify):
Lead
Organization:
Attachments:
☐ Resumes of the Development Team Members
• Information should include name, address, contact person, telephone number, and e-mail address for members of the proposed project team.
• Identify the developer principals and project manager, architect, civil engineer, contractor, owner (if different than developer) and social services provider (if applicable). • If known, identify the lenders, attorneys, accountants, subcontractors, and consultants. • Resumes should include detailed description of experience. ☐ NOFA Attachment G (Developer Capacity Worksheets) for the development team members ☐ Organizational Chart
DEVELOPER EXPERIENCE WORKSHEETS
Attachments:
☐ NOFA Attachment F (Developer Experience Worksheets)
Exhibit 3
358 of 384
PROJECT SUMMARY
Project Name:
Site Information
Site Address:
City: State: Zip Code:
Census Tract No.: Parcel
No:
Description of
Existing
Conditions:
Description of
Environmental
Issues:
☐ Attach Project Zoning Map
☐ Attach Evidence of Entitlement Approvals (Check All That Are Attached) ☐ Copy of the Verification of Zoning and Land Use Entitlement Approvals that is submitted for tax credit applications
☐ Zoning confirmation letter from the City
If the project’s zoning will not permit the scope of development proposed, the applicant must demonstrate to Housing Authority’s satisfaction that all discretionary land use approvals can be granted within 180 days of the application submittal. Explain how you plan to obtain the necessary approvals within 180.
(1,000 character limit)
(1,000 character limit)
(1,000 character limit)
Exhibit 3
359 of 384
PROJECT SUMMARY (continued)
Current Site Use:
(Check All That Apply)
☐ Residential
# of Existing Units (if applicable):
☐ Commercial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
If occupied, briefly
describe uses:
☐ Industrial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
☐ Parking Lot
☐ In Use
☐ Not In Use
# of Parking Spaces:
☐ Vacant Lot
Site Size:
Site Control: ☐ Yes ☐ No
Form of Site Control:
☐ Current
Owner
☐ Purchase
Agreement
☐ Option ☐ Other (Please Specify):
☐ Attach evidence of site control.
☐ Attach a real estate appraisal or current tax documentation that substantiates the value of the property.
Tenant
Relocation: Temporary: ☐ Yes Permanent: ☐ Yes
☐ No ☐ No
☐ Attach Temporary and/or Permanent Tenant Relocation Plan (if applicable) If occupied, briefly
describe uses:
(500 character limit)
(500 character limit)
Exhibit 3
360 of 384
PROJECT DESCRIPTION
Project Type:
(Check All That
Apply)
☐ Acquisition & Rehabilitation ☐ New Construction
Housing Type: (Check All That Apply)
☐ Family ☐ Seniors ☐ Special Needs ☐ Veterans ☐ Other (Please Specify):
Construction
Type (if new
construction):
Amenities:
Total Number of
Housing Units:
Total Number of
Affordable Units:
Total Number of
Bedrooms:
Sq. Ft. of Gross
Building Area:
# of Parking Spaces: Sq. Ft. of Net Building
Area:
Unit Breakdown
Unit Mix: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
# of Units
Unit Sizes
Affordability: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
Extremely Low
Very Low
Low
Total
Attachments:
☐ Project Vicinity Map
☐ Conceptual Plans
☐ Site Photos
☐ High-Quality Transit Project Map
☐ Community Services Project Map(s)
☐ Outreach Plan
☐ Support Letters
☐ Marketing Plan
PROJECT PRO FORMA
Attachments:
☐ Pro Forma Analysis
Exhibit 3
361 of 384
FUNDING INFORMATION
Amount of Funds
Requested:
Other Housing
Authority Fund
Previously
Received, if any:
Total
Development
Costs:
Affordable
Residential Only
Development
Costs:
Attachments:
☐ Detailed Scope of Work
☐ Third-Party Cost Estimate
OTHER EXPECTED FUNDING SOURCES
Source Name Amount Repayment Terms Application Status / Award Dates
Attachments:
☐ Other Funding Sources Supporting Documentation
PROJECT TIMELINE
Milestone Proposed Date
(Month Year)
City Approval
All Funding Sources Awarded
Environmental Review & Assessment Completed
Commencement of Construction
Construction Completed
Exhibit 3
362 of 384
PROJECT NARRATIVE
Attachments:
☐ Project Narrative
The project narrative is a word-processed document of not more than 10 single-spaced pages responding to the questions listed in the NOFA. The document should be a font size of 10 with 1- inch margins.
MARKET DEMAND
Attachments:
☐ Market Demand Narrative
The market demand narrative is a word-processed document of not more than 3 single-spaced pages for rental projects and 4 single-spaced pages for ownership projects responding to the questions listed in the NOFA. The document should be a font size of 10 with 1-inch margins. ☐ Market Demand Evidence (Study or Survey)
Exhibit 3
363 of 384
1.0 Narrative Cover Letter
Exhibit 4
364 of 384
Exhibit 4
365 of 384
Exhibit 4
366 of 384
2.0 Application Form
Exhibit 4
367 of 384
ATTACHMENT E – APPLICATION FORM
Exhibit 4
368 of 384
APPLICANT INFORMATION
Applicant Name:
Identify Applicant: (Check All That Apply)
☐ Applicant is
current owner
and will retain
ownership.
☐ Applicant is the
project developer
and will be part of
the final
ownership entity.
☐ Applicant is the
project developer
and will not be
part of the final
ownership entity
for the project.
☐ Other (Please
Specify):
Address:
City: State: Zip Code:
Contact Person:
Phone Number: Email:
DEVELOPMENT TEAM MEMBERS
Development Team Structure: (Check All That Apply)
☐ Partnership ☐ Corporation ☐ LLC ☐ Other (Please Specify):
Lead
Organization:
Attachments:
☐ Resumes of the Development Team Members
• Information should include name, address, contact person, telephone number, and e-mail address for members of the proposed project team.
• Identify the developer principals and project manager, architect, civil engineer, contractor, owner (if different than developer) and social services provider (if applicable). • If known, identify the lenders, attorneys, accountants, subcontractors, and consultants. • Resumes should include detailed description of experience. ☐ NOFA Attachment G (Developer Capacity Worksheets) for the development team members ☐ Organizational Chart
DEVELOPER EXPERIENCE WORKSHEETS
Attachments:
☐ NOFA Attachment F (Developer Experience Worksheets)
Exhibit 4
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PROJECT SUMMARY
Project Name:
Site Information
Site Address:
City: State: Zip Code:
Census Tract No.: Parcel
No:
Description of
Existing
Conditions:
Description of
Environmental
Issues:
☐ Attach Project Zoning Map
☐ Attach Evidence of Entitlement Approvals (Check All That Are Attached) ☐ Copy of the Verification of Zoning and Land Use Entitlement Approvals that is submitted for tax credit applications
☐ Zoning confirmation letter from the City
If the project’s zoning will not permit the scope of development proposed, the applicant must demonstrate to Housing Authority’s satisfaction that all discretionary land use approvals can be granted within 180 days of the application submittal. Explain how you plan to obtain the necessary approvals within 180.
(1,000 character limit)
(1,000 character limit)
(1,000 character limit)
Exhibit 4
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PROJECT SUMMARY (continued)
Current Site Use:
(Check All That Apply)
☐ Residential
# of Existing Units (if applicable):
☐ Commercial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
If occupied, briefly
describe uses:
☐ Industrial
☐ Vacant
☐ Occupied
# of Buildings:
Sq. Ft:
☐ Parking Lot
☐ In Use
☐ Not In Use
# of Parking Spaces:
☐ Vacant Lot
Site Size:
Site Control: ☐ Yes ☐ No
Form of Site Control:
☐ Current
Owner
☐ Purchase
Agreement
☐ Option ☐ Other (Please Specify):
☐ Attach evidence of site control.
☐ Attach a real estate appraisal or current tax documentation that substantiates the value of the property.
Tenant
Relocation: Temporary: ☐ Yes Permanent: ☐ Yes
☐ No ☐ No
☐ Attach Temporary and/or Permanent Tenant Relocation Plan (if applicable) If occupied, briefly
describe uses:
(500 character limit)
(500 character limit)
Exhibit 4
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PROJECT DESCRIPTION
Project Type:
(Check All That
Apply)
☐ Acquisition & Rehabilitation ☐ New Construction
Housing Type: (Check All That Apply)
☐ Family ☐ Seniors ☐ Special Needs ☐ Veterans ☐ Other (Please Specify):
Construction
Type (if new
construction):
Amenities:
Total Number of
Housing Units:
Total Number of
Affordable Units:
Total Number of
Bedrooms:
Sq. Ft. of Gross
Building Area:
# of Parking Spaces: Sq. Ft. of Net Building
Area:
Unit Breakdown
Unit Mix: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
# of Units
Unit Sizes
Affordability: Studio
Units
1-Bdrm
Units
2-Bdrm
Units
3-Bdrm
Units
4-Bdrm
Units Total
Extremely Low
Very Low
Low
Total
Attachments:
☐ Project Vicinity Map
☐ Conceptual Plans
☐ Site Photos
☐ High-Quality Transit Project Map
☐ Community Services Project Map(s)
☐ Outreach Plan
☐ Support Letters
☐ Marketing Plan
PROJECT PRO FORMA
Attachments:
☐ Pro Forma Analysis
Exhibit 4
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FUNDING INFORMATION
Amount of Funds
Requested:
Other Housing
Authority Fund
Previously
Received, if any:
Total
Development
Costs:
Affordable
Residential Only
Development
Costs:
Attachments:
☐ Detailed Scope of Work
☐ Third-Party Cost Estimate
OTHER EXPECTED FUNDING SOURCES
Source Name Amount Repayment Terms Application Status / Award Dates
Attachments:
☐ Other Funding Sources Supporting Documentation
PROJECT TIMELINE
Milestone Proposed Date
(Month Year)
City Approval
All Funding Sources Awarded
Environmental Review & Assessment Completed
Commencement of Construction
Construction Completed
Exhibit 4
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PROJECT NARRATIVE
Attachments:
☐ Project Narrative
The project narrative is a word-processed document of not more than 10 single-spaced pages responding to the questions listed in the NOFA. The document should be a font size of 10 with 1- inch margins.
MARKET DEMAND
Attachments:
☐ Market Demand Narrative
The market demand narrative is a word-processed document of not more than 3 single-spaced pages for rental projects and 4 single-spaced pages for ownership projects responding to the questions listed in the NOFA. The document should be a font size of 10 with 1-inch margins. ☐ Market Demand Evidence (Study or Survey)
Exhibit 4
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RESOLUTION NO. 2022 -
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY , CALIFORNIA (“HOUSING AUTHORITY”) APPROVING TWO CONDITIONAL LOAN AWARDS FOR FUNDING
REQUESTED THROUGH THE AFFORDABLE HOUSING NOTICE OF FUNDING AVAILABILITY (“NOFA”) RELEASED ON OCTOBER 14, 2021 OF EIGHT MILLION DOLLARS ($8,000,000) TO THE UNION TOWER AFFORDABLE HOUSING PROJECT BY
WAKELAND HOUSING DEVELOPMENT AND HOUSING CORPORATION AND TWO MILLION DOLLARS ($2,000,000) TO THE AZURIIK AFFORDABLE HOUSING PROJECT
BY MAAC NATIONAL CITY, LP
WHEREAS, a Notice of Funding Availability (NOFA) for up to $10,000,000 for the funding of affordable housing in National City was included in a strategic goal of Housing Authority’s Strategic Plan t he was approved by the Community Development Commission- Housing Authority of the City of National City, California (“Housing Authority”) on August 3, 2021; and
WHEREAS, the Notice of Funding Availability (NOFA) for affordable housing was released on October 14, 2021, and applications were due on November 19, 2021; and
WHEREAS, the NOFA made approximately $10 million in total funds available for all capital requests for new construction, acquisition with rehabilitation, or rehabilitation of affordable housing serving households earning up to 60% of the Area Median Income (AMI) for rental projects and households earning up to 80% -120% of the AMI for homeownership projects. Capital funds are from the Housing Authority’s Housing Fund and are subject only to the conditions set forth in the NOFA; and
WHEREAS, after the release of the NOFA on October 14, 2021, a total of two (2) applications were received by the November 19, 2021 deadline; and
WHEREAS, a funding request for $10,000,000 was made by MAAC National City, LP, for the Azuriik Project for 400 housing units to be developed at 233 Roosevelt Avenue in National City and a request for $8,000,000 was made by Wakeland Housing and Development Corporation for the Union Tower Project for 94 housing units to be developed at 2313 “F” Avenue in National City, California; and
WHEREAS, the applications were reviewed for compliance in terms of the NOFA and evaluated according to the established NOFA Evaluation Criteria. Projects were then ranked based on the scoring criteria described in the NOFA; and
WHEREAS, the Housing Authority issued Addendum No. 1 to the NOFA on April 7, 2022 to include a financial feasibility and gap analysis of the two applications to help determine the funding recommendations; and
WHEREAS, the financial feasibility and gap analysis concluded that it is comparatively more likely that the Azuriik proposal may be developed without some or all of the Housing Authority’s financial support, and comparatively less likely that the Union Tower proposal may be developed without some or all of the Housing Authority’s financial support.
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2 Resolution No. 2022 –
Page Two
NOW, THEREFORE, COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Approves two conditional loan awards for funding requested through the Affordable Housing Notice of Funding Availability (“NOFA”) released on October 14, 2021 of Eight Million Dollars ($8,000,000) to the Union Tower Affordable Housing Project by Wakeland Housing Development and Housing Corporation and Tw o Million Dollars ($2,000,000) to the Azuriik Affordable Housing Project by MAAC National City, LP.
Section 2: Once each project has secured its financing including remaining gap funding sources, Housing Authority staff and its financial consultants will underwrite the final loan amounts and draft loan documents for approval by the developer of each project and General Counsel of the Housing Authority.
Section 3: The loan award is not final until a ll necessary loan documents are approved by the Housing Authority.
Section 4: That the City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 7th day of June, 2022.
_____________________________
Alejandra Sotelo-Solis, Chairwoman
ATTEST:
_____________________________
Brad Raulston, Secretary
APPROVED AS TO FORM:
_____________________________
Charles E. Bell Jr., General Counsel
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The following page(s) contain the backup material for Agenda Item: City Manager Report. (City Manager)
Please scroll down to view the backup material.
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Item # ___
06/07/22
City Manager Report
(City Manager)
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The following page(s) contain the backup material for Agenda Item: City Council Policy #105 request to agendize at a future meeting repealing or amending National City Municipal Code Title 11, Chapter 11.68 – Cruising Ordinance - Councilmember Jose Rodriguez.
Please scroll down to view the backup material.
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Item # ___
06/07/22
City Council Policy #105 request to agendize at a future meeting repealing or amending National City Municipal Code
Title 11, Chapter 11.68 – Cruising Ordinance
(Councilmember Jose Rodriguez)
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CITY COUNCIL ITEM REQUEST
The City Council Item Request Form is for members of the City Council to submit written requests to the City Manager’s Office for inclusion of an item on a future City Council Meeting Agenda. At the meeting where the initial written request is heard, discussion should be limited to whether the item should be added to an agenda and a date, not the merit of the item. A majority vote of the City Council is required for the item to be added to a future City Council Meeting Agenda for action.
Requesting Member of City Council: Council Member Rodriguez Today’s Date: Tuesday, May 24th, 2022
Is this matter considered Time-Sensitive by another entity deadline? Yes
WRITTEN REQUEST
I, Council Member Rodriguez hereby request that the following item be placed on the City of National City – City Council meeting agenda for consideration.
Discuss repealing or amending the Chapter 11.68 - CRUISING Ordinance 381 of 384
The following page(s) contain the backup material for Agenda Item: City Council Policy #105 request to agendize at a future meeting that the City Manager/Administrative Services Director provide an update on current employee retention and recruitment efforts - Vice Mayor Marcus Bush.
Please scroll down to view the backup material.
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Item # ___
06/07/22
City Council Policy #105 request to agendize at a future meeting City Manager/Administrative Services Director update on current employee retention and recruitment efforts
(Vice Mayor Marcus Bush)
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CITY COUNCIL ITEM REQUEST
The City Council Item Request Form is for members of the City Council to submit written requests to the City Manager’s Office for inclusion of an item on a future City Council Meeting Agenda. At the meeting where the initial written request is heard, discussion should be limited to whether the item should be added to an agenda and a date, not the merit of the item. A majority vote of the City Council is required for the item to be added to a future City Council Meeting Agenda for action.
Requesting Member of City Council: _____________________________________________________ Today’s Date: ____________________________________________________________________ ___ Is this matter considered Time-Sensitive by another entity deadline? ____________________________
WRITTEN REQUEST
I, _______________________________, hereby request that the following item be placed on the City of National City – City Council meeting agenda for consideration. ____________________________________________________________________________________ ____________________________________________________________________________________ _______________________________________________________________ _____________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ___________________________________________________________________ _________________ ____________________________________________________________________________________ Marcus Bush
May 31, 2022
No
Marcus Bush
City Manager/Administrative Services Director update on current employee retention and recruitment efforts. 384 of 384