AGENDA
Consolidated Regular Meeting
City Council Chamber - 1243 National City
Boulevard, National City, CA
Alejandra Sotelo-Solis, Mayor
Marcus Bush, Vice-Mayor Brad Raulston, City Manager Jose Rodriguez, Councilmember Barry J. Schultz, Interim City Attorney Ron Morrison, Councilmember Luz Molina, City Clerk Mona Rios, Councilmember Mitchell Beauchamp, City Treasurer _______________________________________________________________________ The City Council also sits as the City of National City Community Development Commission, Housing Authority, Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the National City Redevelopment Agency
Thank you for participating in local government and the City of National City Council Meetings.
Meetings: Regular City Council Meetings are held on the first and third Tuesday of the month at 6:00 p.m. Special Closed Session Meeting and Workshops may be same day, the start time is based on needs. Check Special Agendas for times.
Location: Regular City Council Meetings are held i n the Council Chamber located at City Hall, 1243 National City Boulevard, National City, CA 91950, the meetings are open to the public.
Agendas and Material: Agendas and Agenda Packet for items listed are available on the City website, and distributed to the City Council no less than 72 hours prior to the City Council Meeting. Sign up for E-Notifications to receive alerts when items are posted.
Public Participation: Encouraged in a number of ways as described below. Members of the public may attend the City Council Meeting in person, watch the City Council Meeting via live web stream, or participate remotely via Zoom. Recording of Meetings are archived and available for viewing on the City’s website.
Public Comment: Persons wishing to address the City Council on matters not on the agenda may do so under Public Comments. Those wishing to speak on items on the agenda may do so when the item is being considered. Please submit a Speaker’s Slip to the City Clerk prior to the meeting or immediately following the announcement of the item. All comments will be limited up to three (3) minutes. The Presiding Officer shall have the authority to reduce the time allotted to accommodate for a large number of speakers. (City Council Policy 104) If you wish to submit written comment email to the City Clerk’s Office at least 2 hours prior to the City Council Meeting to allow time for distribution to the City Council.
Spanish I nterpretation Services: Spanish I nterpretation S ervices a re a vailable, p lease contact the City Clerk prior to the start of the meeting for assistance.
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AGENDA
Consolidated Regular Meeting
City Council Chamber - 1243 National City
Boulevard, National City, CA
Alejandra Sotelo-Solis, Mayor
Marcus Bush, Vice-Mayor Brad Raulston, City Manager Jose Rodriguez, Councilmember Barry J. Schultz, Interim City Attorney Ron Morrison, Councilmember Luz Molina, City Clerk Mona Rios, Councilmember Mitchell Beauchamp, City Treasurer _______________________________________________________________________ T
he City Council also sits as the City of National City Community Development Commission, Housing Authority, Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the National City Redevelopment Agency
Gracias por participar en las reuniones del gobierno local y del Consejo de la Ciudad de National City.
Reuniones: Las reuniones regulares del Consejo Municipal se llevan a cabo el primer y tercer martes del mes a las 6:00 p.m. La reunión especial de sesión privada y los talleres pueden ser el mismo día, la hora de inicio se basa en las necesidades. Consulte las agendas especiales para conocer los horarios.
Ubicación: Las reuniones regulares del Concejo Municipal se llevan a cabo en la Cámara del Consejo ubicada en el Ayuntamiento, 1243 National City Boulevard, National City, CA 91950, las reuniones están abiertas al público.
Agendas y Material: Las Agendas y el Paquete de Agenda para los temas enumerados están disponibles en el sitio web de la Ciudad y se distribuyen al Concejo Municipal no menos de 72 horas antes de la Reunión del Concejo Municipal. Regístrese para recibir notificaciones electrónicas cuando se publiquen artículos.
Participación pública: Se fomenta de varias maneras como se describe a continuación. Los miembros del público pueden asistir a la Reunión del Concejo Municipal en persona, ver la Reunión del Concejo Municipal a través de la transmisión web en vivo o participar de forma remota a través de Zoom. Las grabaciones de las reuniones están archivadas y disponibles para su visualización en el sitio web de la Ciudad.
Comentario Público: Las personas que deseen dirigirse al Concejo Municipal sobre asuntos que no están en la agenda pueden hacerlo bajo Comentarios públicos. Quienes deseen hacer uso de la palabra sobre los temas del programa podrán hacerlo cuando se esté examinando el tema.
Por favo r, envíe una solicitud del orador al Secretario de la Ciudad antes de la reunión o inmediatamente después del anuncio del artículo. Todos los comentarios estarán limitados a tres (3)
m
inutos. El Presidente tendrá la autoridad para reducir el tiempo asignado para dar cabida a un gran número de oradores. (Política del Concejo Municipal 104) Si desea enviar comentarios por escrito, envíe un correo electrónico a la Oficina del Secretario de la Ciudad al menos 2 horas antes de la Reunión del Consejo Municipal para dar tiempo a la distribución al Consejo Municipal.
Servicios de interpretación en español: Los servicios de interpretación en español están disponibles, comuníquese con el Secretario de la Ciudad antes del inicio de la reunión para obtener ayuda.
Título II de la Ley de Discapacidades Americanas: En cumplimiento con la Ley de Discapacidades Americanas de 1990, las personas con discapacidad pueden solicitar una agenda en formatos alternativos apropiados según lo requerido por el Título II. Cualquier per sona con una discapacidad que requiera un medicamento o adaptación para participar en una reunión debe dirigir dicha solicitud a la Oficina del Secretario de la Ciudad (619) 336 -4228 al menos 24 horas antes de la reunión.
AGENDA
Consolidated Regular Meeting
Tuesday, August 2, 2022, 6:00 p.m.
City Council Chamber - 1243 National City Boulevard
National City, CA
1. CALL TO ORDER
2. ROLL CALL
3. PLEDGE OF ALLEGIANCE TO THE FLAG
4. PUBLIC COMMENT
In accordance with State law, an item not scheduled on the agenda may be brought forward by the general public for comment; however, the City Council will not be able to discuss or take action on any issue not included on the agenda. Speakers will have up to three (3) minutes.
5. PRESENTATION (Limited to Five (5) Minutes each)
5.1. Presentation of 2022 Miss National City and Court
5.2. Presentation - Artist Francisco Morales
6. REGIONAL BOARDS AND COMMITTEE REPORTS (Limited to Five (5) Minutes each)
7. CONSENT CALENDAR
The Consent Calendar may be enacted in one motion by the City Council with a Roll Call Vote without discussion unless a Councilmember, a member of the Public, or the City Manager request an item be removed for discussion. Items removed from the Consent Calendar will be considered immediately following the adoption of the Calendar.
7.1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinance on this Agenda
5 7.2.
7.3. 7.4.
7.5. 7.6.
Approval of City Council Meeting Minutes
Agreement with Chandler Asset Management, Inc. for Investment Management and Investment Advisory Services
Approve the Resolution entitled, “Resolution of the City Council of the City of National City, California authorizing the Mayor to approve the agreement by and between the City of National City and Chandler Asset Management, Inc. for Investment Management and Investment Advisory Services.” CalRecycle SB 1383 Grant – Funds Appropriation
Approve the Resolution entitled, “Resolution of the City Council of the City of National City, California, (1) Ratifying Acceptance of Funds in the Total Amount of $89,461, Awarded t o the Cit y of National Cit y from the S B 1383 Local Assistance Grant Progr am from the California Department of Resources Recycling and Recovery (CalRecy cle) to Implement Regulation Requirements Associated with SB 1383, and; (2) Authorizing the Acceptance of the SB 1383 Local Assistance Grant Program Funds for $89,461, and the Establis hment of Corresponding Expenditure Budget."
Acceptance of Ocean Protection Council Proposition 1 Grant, Authorizing City Manager to Execute Grant Agreement, and Establish Grant Fund Appropriation.
Adopt the Resolution entitled, “Resolution of the City Council of the City of National City, California (1) Accepting the Ocean Protection Council Proposition 1 Grant; (2) Authorizing the City Manager or Designee to Execute the Grant Agreement for the Paradise Creek Wetland and Park Site Project in the amount of $957,000; and (3) Approving the Establishment of an Engineering Grant Funds Appropriation of $957,000 and Corresponding Revenue Budget to Allow for Reimbursement of Eligible Project Expenditures.”
Devaney Pate Morris & Cameron, LLP 1st Amendment to the Agreement Adopt Resolution amending the Agreement between National Cit y and Devaney Pate Morris & Cameron, and author ize the City Manager to execute the first amended Agreement.
7.7. 7.8.
7.9. 7.10.
7.11. 7.12.
7.13. Pedestrian Safety Enhancements Project (PSA) No. Z44 Recommendation:
Adopt a Resolut ion entitled, Resolut ion of the City Council of the City of National City, California, authorizing the Mayor to 1) Execut e the State-Aid Master Agreement; and 2) Execute Program Supplement Agreement (PSA) No.
Z44 with the State of California Department of Transportation (Caltrans) for the Pedestrian Safety Enhancement s Project to allow for reimbursement of up to $60,000 in Eligible Project Expendit ures through the Highway Safety Improvement Program (HSIP); and 3) authorizing the establishment of an Engineering Grant s Fund Appropriat ion of $60, 000 and Corresponding Revenue Budget.”
Rescinding and Replacing City Council Resolution No. 2022-78, and revising SB1 Road Maintenance and Rehabilitation account Projects and Appropriations.
Recommendation:
Adopt a Resolut ion entitled, “Resolut ion of the City Council of the City of National City, California, Rescinding and Replacing Resolution No. 2022-78, adopted on May 17, 2022, to include the schedule and estimated useful life of each of the projects previously approved by said resolution and as required by Caltrans.”
Notice of Decision – Planning Commission Approval of a Conditional Use Permit for the Operation of a Tobacco Specialty Business located at 120 National City Blvd. (Case File No.: 2022-14 CUP)
Staff concurs with the decision of the Planning Com mission and recommends that the Notice of Decision be filed.
Authorize the Acceptance of the Parks Pass 2022 Library Program Grant.
Approve the Resolution entitled, “Resolution of the City Council of the City of National City California, Authorizing the Acceptance of the Parks Pass 2022 Program Grant in the Amount of $4,375.50 from the California State Library to Fund Library Par ks pass Progr ams and Authoriz ing the Establishment of a Library Grants Fund Appropriation of $4,375.50 and Corresponding Revenue Budget."
FY2021 UASI Grant
Biennial Review and Adoption of Resolution Amending the National City Conflict of Interest Code.
Investment transactions for the month ended May 31, 2022.
7.14. 7.15.
7.16. 7.17.
7.18. 7.19.
Warrant Register #47 for the period of 5/20/22 through 5/26/22 in the amount of$1,160,810.01.
Warrant Register #48 for the period of 5/27/22 through 6/02/22 in the amount of$2,661,378.94.
Warrant Register #49 for the period of 6/03/22 through 6/09/22 in the amount of$498,455.34.
Warrant Register #50 for the period of 6/10/22 through 6/16/22 in the amount of$2,800,375.51.
Warrant Register #51 for the period of 6/17/22 through 6/23/22 in the amount of$449,614.08.
Warrant Register #52 for the period of 6/24/22 through 6/30/22 in the amount of$1,995,234.08.
8. STAFF REPORTS
8.1. 8.2.
Public Meeting Protocols – In-Person and Teleconference Meetings Accept the Certification of Sufficiency of Initiative Petition Entitled, “National City Special Parcel Tax for Streets and Parks.”
9. CITY MANAGER REPORT
10. ELECTED OFFICIALS REPORT
11. CITY ATTORNEY REPORT
12. ADJOURNMENT
Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City - Tuesday - August 16, 2022 - 6:00 p.m. - Council Chambers - National City, California.
Item # ___
08/02/22
MOTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL
CITY, CALIFORNIA, APPROVING THE WAIVING OF THE
READING OF THE TEXT OF THE ORDINANCES OR
RESOLUTIONS THAT ARE HAVING A PUBLIC HEARING
CONSIDERED AT THIS MEETING AND PROVIDING THAT
SUCH ORDINANCES OR RESOLUTIONS SHALL BE
INTRODUCED AND/OR ADOPTED AFTER A READING
OF THE TITLE ONLY.
(City Clerk)
AGENDA REPORT
Department: City Clerk's Office
Prepared by: Shelley Chapel, MMC, Deputy City Clerk
Meeting Date: Tuesday, August 2, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
Approval of City Council Meeting Minutes
RECOMMENDATION:
Approve and File.
BOARD/COMMISSION PRIOR ACTION:
None.
EXPLANATION:
Meeting Minutes:
April 19, 2022 Budget Workshop
April 19, 2022 Closed Session
April 19, 2022 City Council and Housing Authority Regular Meeting May 3, 2022 City Council and Housing Authority Regular Meeting
FINANCIAL STATEMENT:
None.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Not Applicable
ENVIRONMENTAL REVIEW:
This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Minutes
MINUTES OF A SPECIAL MEETING
NATIONAL CITY COUNCIL
BUDGET WORKSHOP
April 19, 2022
This meeting was conducted utilizing teleconferencing and electronic means consistent with State of California Assembly Bill No. 361, approved by Governor Newsom on September 16, 2021.
A. CITY COUNCIL
CALL TO ORDER
The meeting was called to order at 4:03 p.m. by Mayor Sotelo-Solis.
ROLL CALL
Councilmembers present: Bush, Morrison, Rios, Rodriguez, Sotelo-Solis Other Elected Officials present: Beauchamp, Molina
Administrative Officials present: Raulston, Winney, Bell Jr., Chapel, Aguirre, Brennan, Barrera, Barra, Gilman, Navarro, Pehau, Ryan, Tellez, Valadez, Vergara, Yano Consultant: Susana Villegas
Interpretation in Spanish provided by Carlos Diaz and Luisa Diaz de Leon.
PLEDGE OF ALLEGIANCE TO THE FLAG
None
PUBLIC COMMENT
None
1. BUDGET WORKSHOP/FISCAL YEAR 2023 BUDGET PRESENTATION
Introduction and Overview
Strategic Planning
City Priorities
Preliminary Financial Forecast and Historical Trends
Fiscal Year 2022-2023 Preliminary Budget (FY July 2022–June 2023) Capital Improvement Program (CIP) 5- year plan
Closing Comments, Next Steps, and Request for Direction Public Comment
City Council Comments and Direction
City of National City – Special Meeting Minutes (Budget Workshop) April 19, 2022
A PowerPoint presentation was provided and is available on the City website.
City Executives reported on key points of focus for each department.
Director Brennan provided the overview of the Fiscal Year 2022-2023 Preliminary Budget.
Director Yano provided an overview and PowerPoint presentation on the Capital Improvement Program (CIP) 5 - year plan. Susana Villegas of Falcon Strategies provided a report on the Together We Plan outreach on City projects.
City Manager and Department Directors addressed questions from members of the City Council.
Public Comment: None.
Council directed Staff to return to a future meeting with the following items:
City Councilmember Rodriguez absent from virtual meeting via video 5:09 p.m. to 5:13 p.m.
ACTION: Motion by Vice-Mayor Bush, seconded by Councilmember Rios , to a pprove Staff recommendations to return the “City Council Decision Items” with more information for discussion.
Motion passed by unanimous vote.
ACTION: Motion by Mayor Sotelo-Solis, seconded by Vice-Mayor Bush, to add the following three (3) budget items under General Fund and for Staff to return with more information for discussion:
* Environmental Justice/Climate Action/Healthy Communities Planning staff Person * Homelessness staff person
* Discuss Fire and PD Explorer Programs/Building a Pipeline for Recruitment Ayes: Rodriguez, Bush, Sotelo-Solis
Nays: Morrison, Rios
Motion passed by 3-2 vote.
ACTION: Motion by Councilmember Rodriguez, seconded by Vice -Mayor Bush, to add the following three (3) budget items under General Fund and for Staff to return with more information for discussion:
* Tree trimming assistance
* Support for Building Permit Department
* Security at Parks
Ayes: Rodriguez, Bush
Nays: Morrison, Rios, Sotelo-Solis
Motion failed by 2-3 vote.
ACTION: Substitute Motion by Councilmember Rodriguez, seconded by Vice -Mayor Bush, to remove the selection “Las Palmas Park: New Yoga and Fitness Lawn” and to replace it with the selection “Citywide: Small Business and Nonprofit Micro -Grants” on list of Recommendation for Uncommitted $3 Million ARPA Funds.
Ayes: Rodriguez, Bush
Nays: Morrison, Rios, Sotelo-Solis
Motion failed by 2-3 vote.
ACTION: Motion by Councilmember Rios, seconded by Vice-Mayor Bush, to remove the selection “Las Palmas Park: New Yoga and Fitness Lawn” and to replace it with the selection “Citywide:
City of National City – Special Meeting Minutes (Budget Workshop) April 19, 2022
Fast and Free Broadband Internet as all City Parks” on list of Recommendation for Uncommitted $3 Million ARPA Funds.
City Manager Raulston commented that Staff is pursuing other sources of funding for internet services at city parks.
Councilmember Rios rescinded her motion.
ARPA Funds:
Kimball Park: New Dog Park and Lighting – Passed 5-0
Las Palmas Park: New Pool Splash Pad and Children’s Area – Passed 5-0 Citywide: New Homeless Services Equipment – Passed 5-0
Las Palmas Park: New Dog Park – Passed 5-0
Las Palmas Park: New Yoga and Fitness Lawn – Passed 3-2 with Rodriguez, Bush voting No
Citywide: Cultural Asset Improvements – Passed 5-0
Paradise Creek Educational Park: Restrooms – Passed 5-0
A copy of the preliminary budget is available for public review at the following location:
http://www.nationalcityca.gov/government/city-clerk/agendas-minutes
ADJOURNMENT
Mayor Sotelo-Solis adjourned to the Special Meeting to the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City held Tuesday, April 19, 2022 at the conclusion of the Budget Workshop via teleconference.
The meeting adjourned at 6:38 p.m.
__________________________
Luz Molina, City Clerk
The foregoing minutes were approved at the Regular Meeting of August 2, 2022.
__________________________
Alejandra Sotelo-Solis, Mayor
MINUTES OF THE VIRTUAL REGULAR MEETING
OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT
COMMISSION – HOUSING AUTHORITY
OF THE CITY OF NATIONAL CITY
April 19, 2022
This meeting was conducted utilizing teleconferencing and electronic means consistent with State of California Assembly Bill No. 361, approved by Governor Newsom on September 16, 2021.
The City Council minutes are prepared and ordered to correspond to the City Council Age nda.
Agenda Items can be taken out of order during the meeting. The Agenda Items were considered in the order presented.
A. CITY COUNCIL
CALL TO ORDER
The meeting was called to order at 6:50 p.m. by Mayor Sotelo-Solis.
ROLL CALL
Councilmembers present: Morrison, Rios, Rodriguez, Bush, Sotelo-Solis Other Elected Officials present: Beauchamp, Molina
Administrative Officials present: Raulston, Winney, Bell Jr., Chapel, Brennan, Barrera, Yano, Aguirre, Palma, Valadez, Ryan, Gilman, Meteau, Vergara, Parra, Lopez, Gutlay, Tellez.
Interpretation in Spanish provided by Carlos Diaz and Luisa Diaz de Leon.
PLEDGE OF ALLEGIANCE TO THE FLAG
Mayor Sotelo-Solis led the Pledge of Allegiance.
PUBLIC COMMENTS
Mayor Sotelo-Solis summarized the process for acceptance of live public comment allowing three (3) minute per comment and introduced City Clerk Molina.
Eight (8) spoken comments were registered and heard: Barbara Gordon, Becky Rapp, Peggy Walker, Carol Green, Rudy Garza, Yvonne Diaz-Thomas, Jose Lopez, and Victor Valle.
Two (2) written comments were received and read: H. Bradley Bang and Jose Franco Garcia.
City of National City – City Council Regular Meeting Minutes April 19, 2022
PROCLAMATIONS AND CERTIFICATES
1. Fair Housing Month Proclamation.
Mayor Sotelo-Solis introduced Estela de Los Rios who received the honor and provided remarks.
Received and filed.
AWARDS AND RECOGNITIONS - No agenda items.
PRESENTATIONS - No agenda items.
INTERVIEWS / APPOINTMENTS - No agenda items.
REGIONAL BOARDS AND COMMITTEE REPORTS
Councilmember Rios provided a report on the Sweetwater Authority.
CONSENT CALENDER
Public Comment: (taken out of order)
One (1) verbal comment was registered and heard concerning Item 5: Charles Cole.
ACTION: Motion by Vice-Mayor Bush , second by Councilmember Morrison, to approve the Consent Calendar Items 2 – 9.
Motion carried by 5-0 vote.
2. Approved Motion of the City Council of the City of National City, California approving the waiving of the reading of the text of the Ordinances or Resolutions that are having a Public Hearing considered at this meeting and providing that such Ordinances or Resolutions shall be introduced and/or adopted after a reading of the title only.
3. Adopted Resolution No. 2022 -56. Resolution of the City Council of the City of National City, California, authorizing the issuance of a Request for Qualifications (“RFQ”) for legal services for the Community Development Commission – Housing Authority of the City of National City.
4. Adopted Resolution No. 2022 -57. Resolution of the City Council of the City of National City, California, authorizing the Mayor to execute an agreement with Fortel Traffic, Inc. for a not-to-exceed amount of $199,802.25 to provide and install solar speed feedback signs with flashing beacons citywide.
5. Adopted Resolution No. 2022 -58. Resolution of the City Council of the City of National City, California authorizing the extension of red curb “No Parking” for the bus stop located north of E. 4th Street and east of Laurel Avenue in order to enhance safety and provide the required space for the bus stop (TSC No. 2022-01).
6. Adopted Resolution No. 2022 -59. Resolution of the City Council of the City of National City, California authorizing the installation of a blue curb disabled persons parking space with sign in front of the residence located at 39 E. 5th Street (TSC No. 2022-03).
City of National City – City Council Regular Meeting Minutes April 19, 2022
7. Received and Filed. Investment transactions for the month ended February 28, 2022.
8. Ratified Warrant Register #36 for the period of 3/04/22 through 3/10/22 in the amount of $1,536,644.35.
9. Ratified Warrant Register #37 for the period of 3/11/22 through 3/17/22 in the amount o f $599,280.12.
PUBLIC HEARINGS: ORDINANCES AND RESOLUTIONS
10. Adopted Resolution No. 2022-60. Public Hearing and Adoption of a Resolution regarding a Conditional Use Permit for distilled spirits sales (Type 21) at a proposed retail outlet (Tahona Mercado) to be located at 802 ‘B’ Avenue. (Applicant: Amar Harrag) (Case File 2021-27 CUP).
City Clerk Molina read the title of the Resolution into the record.
Principal Planner Reeder provided a report and PowerPoint presentation. The applicant, Amar Harrag, provided a statement. Mr. Reeder and Mr. Harrag addressed questions from Council.
Mayor Sotelo-Solis declared the Public Hearing open at 7:52 p.m.
Public Comment:
One (1) written comment was received and read: Joan Rincon.
ACTION: Motion by Councilmember Morrison, seconded by Vice-Mayor Bush, to close the Public Hearing at 7:53 p.m.
Motion passed by 5-0 vote.
ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rios, to adopt the Resolution with amendment to change the hours of operation to Sunday–Thursday 11 a.m. to 9 p.m. and Friday–Saturday 10 a.m. to 10 p.m.
Motion passed by 5-0 vote.
11. Adopted Resolution No. 2022-61. Public Hearing and Adoption of a Resolution of the City Council of the City of National City, California, adopting the fiscal year 2022-2023 Master Fee Schedule.
City Clerk Molina read the title of the Resolution into the record.
Mayor Sotelo-Solis introduced Administrative Services Director Brennan who provided the report and PowerPoint Presentation. Director Brennan addressed questions from Council.
Mayor Sotelo-Solis declared the Public Hearing open at 8:08 p.m.
Public Comment: None.
ACTION: Motion by Vice-Mayor Bush, seconded by Councilmember Morrison, to close the Public Hearing at 8:09 p.m.
Motion passed by 5-0 vote.
City of National City – City Council Regular Meeting Minutes April 19, 2022
ACTION: Motion by Councilmember Rios, seconded by Vice-Mayor Bush , to a dopt the Resolution.
Motion passed by 5-0 vote.
Public Comment taken out of order due to technical issues for Item 5. Charles Cole in opposition.
12. Public Hearing and Introduction of an Ordinance of the City of National City Amending Chapter 2.64 of Title 2 of the National City Municipal Code relating to the Community Development Commission-Housing Authority of the City of National City.
City Clerk Molina read the title of the Ordinance into the record.
Mayor Sotelo-Solis introduced Director of Housing Authority Aguirre who provided the report.
Mayor Sotelo-Solis declared the Public Hearing open at 8:18 p.m.
Public Comment: None.
ACTION: Motion by Councilmember Rios, seconded by Councilmember Morrison, to close the Public Hearing at 8:19 p.m.
Motion passed by 5-0 vote.
ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rios, to introduce the Ordinance.
Motion passed by 5-0 vote.
13. Public Hearing and Introduction of an Ordinance of the City Council of the City of National City, California, Repealing Ordinance No. 2017-2432 and Ordinance No. 2020-2483; and Removing Chapter 16.09 in its Entirety from the National City Municipal Code Dissolving the Veterans and Military Families Advisory Committee.
City Clerk Molina read the title of the Ordinance into the record.
Mayor Sotelo-Solis introduced Deputy City Clerk Chapel who provided the report.
Mayor Sotelo-Solis declared the Public Hearing open at 8:22 p.m.
Public Comment: None.
ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rios, to close the Public Hearing 8:23 p.m.
Motion passed by 5-0 vote.
ACTION: Motion by Councilmember Rios, seconded by Councilmember Morrison, to introduce the Ordinance.
Motion passed by 5-0 vote.
City of National City – City Council Regular Meeting Minutes April 19, 2022
NON CONSENT RESOLUTIONS
14. Resolution of the City Council of the City of National City, California, authorizing the City to utilize cooperative purchasing established through Sourcewell contract 090320 -TTI, consistent with Municipal Code Section 2.60.260, to purchase Tyler Technologies’ Munis Hosted ERP System, and authorizing the Mayor to execute the Agreement between the City of National City and Tyler Technologies, Inc. for said system to replace the current outdated enterprise resource planning software system for a one-time cost not-to-exceed $367,148 and reoccurring annual license, maintenance, and support costs of $125,172.
City Clerk Molina read the title of the Resolution into the record.
Mayor Sotelo-Solis introduced Administrative Services Director Brennan who provided the report and PowerPoint presentation. Director Brennan and Assistant City Manager Winney addressed questions from Council.
Public Comment: None.
ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rios, to adopt the Resolution.
Substitute motion by Mayor Sotelo-Solis, seconded by Vice-Mayor Bush, to direct Staff to go through a Request for Proposal (RFP) process for a more competitive bid.
Ayes: Rodriguez, Bush, Sotelo-Solis
Nays: Morrison, Rios
Motion passed by 3-2 vote.
NEW BUSINESS
15. Received and Filed. City of National City annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2021.
City Clerk Molina read the title of the Item into the record.
Mayor Sotelo -Solis introduced Finance Manager Barrera who introduced Coley Delaney, representative with the Pun Group. Manager Barrera and Mr. Delaney provided the report and a PowerPoint presentation.
Public Comment: None.
ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rodriguez, to file the report.
Motion passed by 5-0 vote.
16. Accepted recommendation. City Council Policy Nos. 104 and 113 regarding City Council Meeting Decorum.
City Clerk Molina read the title of the Item into the record.
City of National City – City Council Regular Meeting Minutes April 19, 2022
Mayor Sotelo-Solis introduced Deputy City Clerk Chapel who provided the report. Councilmember Rios provided remarks.
Public Comment:
One (1) written comment was received and read: Mary Davis.
ACTION: Motion by Councilmember Rios, seconded by Vice-Mayor Bush, to accept the parliamentarian’s March 9, 2022 memo to City Councilmembers titled Meeting Decorum, and to codify the following changes to the National City Municipal C ode and for Staff to return with a redline of the applicable City Council polices:
o Define audio and visual requirements for open and close session City Council meetings to establish and maintain quorum.
o Define audio and visual requirements for open and close session City Council me etings for the purpose of documenting absences.
o In City Council Policy 104, Section 2 Responsibilities, subsection C, include “As a courtesy, members of the City Council shall report upcoming absences to the City Manager and the board chair, as soon as possible.”
Ayes: Rios, Bush, Sotelo-Solis
Nays: Morrison, Rodriguez
Motion passed by 3-2 vote.
B. COMMUNITY DEVELOPMENT COMMISSION – HOUSING AUTHORITY – No agenda items.
C. REPORTS
STAFF REPORTS
17. City Manager Report.
Assistant City Manager Winney provided the report and addressed questions from Council.
MAYOR AND CITY COUNCIL
Closing remarks were provided by members of the Council, City Treasurer, and City Clerk.
CLOSED SESSION
CLOSED SESSION REPORT
Mayor Sotelo -Solis introduced City Attorney Bell who provided the report out for the special meeting held April 12, 2022, and the special meeting held April 19, 2022.
1. CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Employee Organizations: Police Officers Association (POA) Agency Designated Representatives: Eddie Kreisberg (Labor Negotiator), Brad Raulston (City Manager), Tony Winney (Assistant City Manager), Jose Tellez (Chief
City of National City – City Council Regular Meeting Minutes April 19, 2022
of Police), Molly Brennan (Administrative Services Director), Paul Valadez (Budget Manager - Finance), Grace Navarro (Human Resources Manager).
No report.
ADJOURNMENT
Mayor Sotelo -Solis adjourned to the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City, Tuesday, May 3, 2022, 6:00 p.m. via teleconference.
The meeting adjourned at 9:49 p.m.
__________________________
Luz Molina, City Clerk
The foregoing minutes were approved at the Regular Meeting of August 2, 2022.
__________________________
Alejandra Sotelo-Solis, Mayor
MINUTES OF A SPECIAL MEETING
NATIONAL CITY COUNCIL
April 19, 2022
This meeting was conducted utilizing teleconferencing and electronic means consistent with State of California Assembly Bill No. 361, approved by Governor Newsom on September 16, 2021.
OPEN SESSION
CALL TO ORDER
The meeting was called to order at 3:03 p.m. by Mayor Sotelo-Solis.
ROLL CALL
Councilmembers present: Bush, Morrison, Rios, Rodriguez (audio only), Sotelo-Solis Administrative Officials present: Raulston, Winney, Bell Jr., Chapel, Brennan, Navarro, Valadez, Consultant: Eddie Kreisberg
PUBLIC COMMENT
None
CLOSED SESSION
Members retired into Closed Sessi on at 3:08 p.m. and returned at 3:30 p.m. with all members present in attendance: Bush, Morrison, Rios, Rodriguez, Sotelo-Solis, Raulston, Winney, Bell Jr., Brennan, Navarro, Valadez, and Eddie Kreisberg.
1. CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Employee Organizations: Police Officers Association (POA) Agency Designated Representatives: Eddie Kreisberg (Labor Negotiator), Brad Raulston (City Manager), Tony Winney (Assistant City Manager), Jose Tellez (Chief of Police), Molly Brennan (Administrative Services Director), Paul Valadez (Budget Manager - Finance), Grace Navarro (Human Resources Manager)
CLOSED SESSION REPORT PROVIDED AT END OF REGULAR MEETING
ADJOURNMENT
Mayor Sotelo-Solis adjourned to the Special Meeting to the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City held Tuesday, April 19, 2022 at 6:00 p.m. via teleconference.
The meeting adjourned at 3:31 p.m.
__________________________
Shelley Chapel, Deputy City Clerk
The foregoing minutes were approved at the Regular Meeting of June 21, 2022.
__________________________
Alejandra Sotelo-Solis, Mayor
MINUTES OF THE VIRTUAL REGULAR MEETING
OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT
COMMISSION – HOUSING AUTHORITY
OF THE CITY OF NATIONAL CITY
May 3, 2022
This meeting was conducted utilizing teleconferencing and electronic means consistent with State of California Assembly Bill No. 361, approved by Governor Newsom on September 16, 2021.
The City Council minutes are prepared and ordered to correspond to the City Council Age nda.
Agenda Items can be taken out of order during the meeting. The Agenda Items were considered in the order presented.
A. CITY COUNCIL
CALL TO ORDER
The meeting was called to order at 6:06 p.m. by Mayor Sotelo-Solis.
ROLL CALL
Councilmembers present: Rios, Rodriguez, Sotelo-Solis, Bush (joined at 6:11 p.m.), Morrison (joined at 6:18 p.m.)
Other Elected Officials present: Beauchamp, Molina
Administrative Officials present: Raulston, Winney, Bell Jr., Chapel, Brennan, Barrera , Yano, Aguirre, Ryan, Gilman, Meteau, Vergara, Parra, Tellez, Lopez, Garcia.
Interpretation in Spanish provided by Carlos Diaz and Luisa Diaz de Leon.
PLEDGE OF ALLEGIANCE TO THE FLAG
Mayor Sotelo-Solis led the Pledge of Allegiance.
PUBLIC COMMENTS
Mayor Sotelo-Solis summarized the process for acceptance of live public comment allowing three (3) minute per comment and introduced City Clerk Molina.
Four (4) verbal comments were registered and heard: Barbara Gordon, Becky Rapp, Judi Strang, and Carol Green.
One (1) written comment was received and read: Gerson Leon.
City of National City – City Council Regular Meeting Minutes May 3, 2022
PROCLAMATIONS AND CERTIFICATES
1. 53rd Annual Professional Municipal Clerks Week - May 1 - May 7, 2022.
Mayor Sotelo-Solis presented the honor to City Clerk Molina and Deputy City Clerk Chapel.
Received and filed.
AWARDS AND RECOGNITIONS - No agenda items
PRESENTATIONS - No agenda items
INTERVIEWS / APPOINTMENTS
2. Appointments: City Boards, Commissions and Committees – City Council Appointments.
Mayor Sotelo-Solis introduced Deputy City Clerk Chapel who provided a report and addressed questions from Council.
Public Comment: No verbal or written comments were received.
ACTION: Motion by Mayor Sotelo-Solis, seconded by Councilmember Rios, to hold over this item for the following month.
Ayes: Rios, Sotelo-Solis
Nays: Morrison, Rodriguez, Bush
Motion fails by 2-3 vote.
City Clerk Molina recited the procedure for appointment of a candidate to the Civil Service Commission. Applicant Javier Alvarado was interview by City Councilmembers.
ACTION: Motion by Councilmember Morrison, seconded by Mayor Sotelo-Solis, to appoint Javier Alvarado to the Civil Service Commission for a term ending September 30, 2022.
Motion carried by unanimous vote.
REGIONAL BOARDS AND COMMITTEE REPORTS
Councilmember Rios reported on the business of the Sweetwater Authority Governing Board.
Mayor Sotelo-Solis reported on the business of the Metropolitan Transit System (MTS).
Port of San Diego Commissioner Sandy Naranjo provided a report on the Port of San Diego.
Vice-Mayor Bush provided reports on regional committee meetings he attended.
CONSENT CALENDER
Public Comment: No verbal or written comments were received.
Councilmember Rios pulled Items 5 and 6 for discussion.
City of National City – City Council Regular Meeting Minutes May 3, 2022
ACTION: Motion by Councilmember Rios, seconded by Vice-Mayor Bush, to approve the Consent Calendar Items 3, 4, and 7 through 16.
Motion carried by 5-0 vote.
3. Approved Motion of the City Council of the City of National City, California approving the waiving of the reading of the text of the Ordinances or Resolutions that are having a Public Hearing considered at this meeting and providing that such Ordinances or Resolutions shall be introduced and/or adopted after a reading of the title only.
4. Adopted Resolution No. 2022-63. Adoption of a Resolution Declaring Findings to Continue Teleconference Meetings to May 17, 2022, as required by AB 361.
5. Pulled.
6. Pulled.
7. Adopted Resolution No. 2022 -66. Resolution of the City Council of the City of National City, California, authorizing the issuance of a Request for Qualifications (“RFQ”) for legal services for the Public Works and Engineering Department of National City.
8. Adopted Resolution No. 2022 -67. Resolution of the City Council of the City of National City to authorize the City Manager to enter into a three year Agreement with Thomson Reuters CLEAR®. The total cost for the three years is not to exceed $26,400.00 or $8,800.00 per year.
9. Adopted Resolution No. 2022 -68. Resolution of the City Council of the City of National City, California, (1) approving an Affordable Housing Density Bonus Agreement with Torreyana Associates, LLC, a California Limited Partnership, restricting the rent and occupancy of one (1) unit to a lower income household in exchange for three concessions pursuant to California Government Code Sections 65915 – 65918 for the development of 12 housing units located at 316 East 31st Street in National City; and (2) approving a Subordination and Intercreditor Agreement subordinating said Affordable Housing Density Bonus Agreement.
10. Adopted Resolution No. 2022 -69. Resolution of the City Council of National City, California, creating one (1) new job classification and amending the Man agement Salary Schedule.
11. Adopted Resolution No. 2022 -70. Resolution of the City Council of the City of National City, 1) awarding a contract to Tri Group Construction and Development, Inc. in the not - to-exceed amount of $638,963 for the Paradise Creek Educational Park Extension Project, CIP No. 19 -33; 2) authorizing a 15% contingency in the amount of $95,844.45 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract.
12. Adopted Resolution No. 2022 -71. Resolution of the City Counci l of the City of National City, California, authorizing the installation of stop control and yield control signs for the intersections of E. 31st Street, between “B” Avenue and “C” Avenue in order to enhance safety at the intersections (TSC No. 2022-02).
13. Received and Filed. Quarterly Report - Boards, Commissions, and Committee Attendance and Training.
City of National City – City Council Regular Meeting Minutes May 3, 2022
14. Received and Filed. City Council 2022 Legislative Recess.
15. Ratified Warrant Register #38 for the period of 3/18/22 through 3/24/22 in the amount of $1,758,342.81.
16. Ratified Warrant Register #39 for the period of 3/25/22 through 3/31/22 in the amount of $238,388.08.
ITEMS PULLED FROM CONSENT CALENDER
5. Adopted Resolution No. 2022 -64. Resolution of the City Council of the City of National City, California, authorizing the City Clerk's Office to apply for certification from the U.S.
Department of State, establishing a passport acceptance facility in the City Clerk's Office located in City Hall.
Councilmember Rios provided remarks. Deputy City Cle rk Chapel addressed questions from Council.
Public Comment: No verbal or written comments were received.
ACTION: Motion by Councilmember Morrison, seconded by Vice-Mayor Bush , to adopt the Resolution with the amendment to hire one Part -Time Employee (PTE) with an annual salary of $20,000.
Motion carried by 5-0 vote.
6. Adopted Resolution No. 2022-65. Resolution of the City Council of the City of National City, California, authorizing the Mayor to execute an agreement with Luth and Turley, Inc. in the not-to-exceed amount of $150,000.
Councilmember Rios provided remarks. Deputy City Clerk Chapel addressed questions from Council.
Public Comment: No verbal or written comments were received.
ACTION: Motion by Councilmember Rios, seconded by Vice-Mayor Bush, to adopt the Resolution with an amendment to direct Staff to bring forward a Request for Proposal (RFP).
Motion carried by 5-0 vote.
PUBLIC HEARINGS: ORDINANCES AND RESOLUTIONS
17. Adopted Resolution No. 2022-72. Public Hearing and Adoption of a Resolution of the City Council of the City of National City adopting the U.S Department of Housing and Urban Development (HUD) 2022-2023 Annual Action Plan and the allocation of 2022-2023 HUD entitlement grant funds and program income to Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program activities proposed for 2022-2023 Annual Action Plan.
City Clerk Molina read the title of the Resolution into the record.
City of National City – City Council Regular Meeting Minutes May 3, 2022
Mayor Sotelo -Solis introduced Director of Housing Authority Aguirre and Housing Programs Manager Palma who provided the report and addressed questions from Council.
Mayor Sotelo-Solis declared the Public Hearing open at 7:34 p.m.
Public Comment: No verbal or written comments were received.
ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rodriguez, to close the Public Hearing at 7:34 p.m.
Motion passed by 5-0 vote.
ACTION: Motion by Councilmember Morrison, seconded by Mayor Sotelo-Solis, to adopt the Resolution.
Motion passed by 5-0 vote.
18. Adopted Ordinance No. 2022-2501. Public Hearing and Adoption of an Ordinance of the City of National City, California, Amending Chapter 2.64 of Title 2 of the National City Municipal Code relating to the Community Development Commission -Housing Authority of the City of National City.
City Clerk Molina read the title of the Ordinance into the record.
Mayor Sotelo-Solis introduced Director of Housing Authority Aguirre who provided the report.
Mayor Sotelo-Solis declared the Public Hearing open at 7:36 p.m.
Public Comment: No verbal or written comments were received.
ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rios, to close the Public Hearing at 7:36 p.m.
Motion passed by 5-0 vote.
ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rios, to adopt the Ordinance.
Motion passed by 5-0 vote.
19. Adopted Ordinance No. 2022-2502. Public Hearing and Adoption of an Ordinance of the City Council of the City of National City, California, Repealing Ordinance No. 2017 -2432 and Ordinance No. 2020 -2483; and Removing Chapter 16.09 in its Entirety from the National City Municipal Code Dissolving the Veterans and Military Families Advisory Committee.
City Clerk Molina read the title of the Ordinance into the record.
Mayor Sotelo-Solis introduced Deputy City Clerk Chapel who provided the report.
Mayor Sotelo-Solis declared the Public Hearing open at 7:39 p.m.
Public Comment: No verbal or written comments were received.
City of National City – City Council Regular Meeting Minutes May 3, 2022
ACTION: Motion by Councilmember Rios, seconded by Councilmember Morrison, to close the Public Hearing at 7:39 p.m.
Motion passed by 5-0 vote.
ACTION: Motion by Councilmember Rios, seconded by Councilmember Morrison, to adopt the Ordinance.
Motion passed by 5-0 vote.
NON CONSENT RESOLUTIONS
20. Adopted Resolution No. 2022 -73. Resolution of the City Council of the City of National City, California to eliminate library overdue material fines to ensure equitable access to Library Services.
City Clerk Molina read the title of the Resolution into the record.
Mayor Sotelo -Solis introduced Library and Community Services Director Ryan who gave the report and a PowerPoint presentation, and addressed questions from the Council.
Public Comment:
One (1) verbal comment was registered and heard: Margaret Godshalk.
ACTION: Motion by Councilmember R ios, seconded by Mayor Sotelo -Solis, to adopt the Resolution.
Motion passed by 5-0 vote.
NEW BUSINESS
21. Accepted Notice of Decision – Planning Commission approval of a Conditional Use Permit for beer and wine sales at a new restaurant (BB.Q Chicken) located at 2527 East Plaza Blvd. (Applicant: Shimon G&M, Inc.) (Case File 2022-07 CUP)
City Clerk Molina read the title of the Item into the record.
Mayor Sotelo -Solis introduced Director of Community Development Vergara who addressed questions from Council.
Public Comment: No verbal or written comments were received.
ACTION: Motion by Councilmember Morrison, seconded by Vice-Mayor Bush, to concur with the Planning Commission’s recommendation to accept and file the Notice of Decision.
Ayes: Morrison, Rodriguez, Bush, Sotelo-Solis
Nays: Rios
Motion passed by 4-1 vote.
22. Accepted Notice of Decision – Planning Commission approval of a Conditional Use Permit for the modification of an existing wireless communications facility located at 2435 Sweetwater Road. (Applicant: DISH Wireless) (Case File 2022-10 CUP)
City Clerk Molina read the title of the Item into the record.
City of National City – City Council Regular Meeting Minutes May 3, 2022
Mayor Sotelo -Solis introduced Director of Community Development Vergara who addressed questions from Council.
Public Comment: No verbal or written comments were received.
ACTION: Motion by Councilmember Rodriguez, seconded by Councilmember Morrison, to concur with the Planning Commission’s recommendation to accept and file the Notice of Decision.
Motion passed by 5-0 vote.
B. COMMUNITY DEVELOPMENT COMMISSION – HOUSING AUTHORITY – No agenda items
C. REPORTS
STAFF REPORTS
23. Community Service Day & Upcoming Event Dates.
Mayor Sotelo -Solis introduced Library & Community Services Director Ryan who provided a PowerPoint Presentation.
Received and Filed.
24. City Manager Report.
City Manager Raulston provided the report.
Received and Filed.
MAYOR AND CITY COUNCIL
Closing remarks were provided by City Treasurer, City Clerk, and members of the City Council.
CLOSED SESSION
CLOSED SESSION REPORT – No agenda items
ADJOURNMENT
Mayor Sotelo -Solis adjourned to the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City, Tuesday, May 17, 2022, 6:00 p.m. via teleconference.
The meeting adjourned at 8:16 p.m.
__________________________
Luz Molina, City Clerk
The foregoing minutes were approved at the Regular Meeting of August 2, 2022.
__________________________
Alejandra Sotelo-Solis, Mayor
AGENDA REPORT
Department: Administrative Services - Finance
Prepared by: Phillip Davis, Financial Analyst, Administrative Services Meeting Date: Tuesday, August 2, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
Agreement with Chandler Asset Management, Inc. for Investment Management and Investment Advisory Services
RECOMMENDATION:
Approve the Resolution entitled, “ Resolution of the City Counci l of the City of National City, California authorizing the Mayor to approve the agreement by and between the City of National City and Chandler Asset Management, Inc. for Investment Management and Investment Advisory Services.”
BOARD/COMMISSION PRIOR ACTION:
Not applicable
EXPLANATION:
The City of National City entered into an agreement with Chandler Asset Management, Inc. after the firm successfully submitted the winning proposal in response to a Request for Proposal for Investment Management and Advisory Services conducted in 2016. Th e agreement was approved on November 15, 2016 for investment management and investment advisory services for the City for the period of November 16, 2016 through November 15, 2019 with an option for the City to extend the agreement under the same terms and conditions for up to two (2) additional years beyond the initial contract expiration date. The City has exercised both options and the agreement has expired as of November 15, 2021.
To remedy this situation, staff seeks approval for a short -term contrac t with Chandler Asset Management, Inc. This short -term agreement is for the period beginning November 16, 2021 through June 30, 2023 . Approval of the proposed agreement will enable staff to conduct a Request for Proposal (RFP) process during fiscal year 2022-2023 to identify an investment services vendor for a future longer term agreement.
FINANCIAL STATEMENT:
An appropriation is not necessary for this item because funds have been approved in the FY 2022-23 budget for investment management and investment advisory services.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Balanced Budget and Economic Development
ENVIRONMENTAL REVIEW:
This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit 1 - Resolution
Exhibit 2 – Agreement
Exhibit 3 – Exhibit A
Exhibit 4 – City of National City Investment Policy
RESOLUTION NO. 2022 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ,
CALIFORNIA AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT BY AND
BETWEEN THE CITY OF NATIONAL CITY AND CHANDLER ASSET MANAGEMENT, INC. FOR INVESTMENT MANAGEMENT AND INVESTMENT ADVISORY SERVICES
WHEREAS, on November 15, 2016, the City of National City (City) entered into an agreement with Chandler Asset Management, Inc. to perform investment management and investment advisory services for a period November 16, 2016 through November 15, 2019 with an option to extend for two additional one-year terms; and WHEREAS, the City exercised its two one -year options to extend the agreement through November 15, 2021; and
WHEREAS, the November 15, 2016 agreement with Chandler Asset Management expired as of November 16, 2021; and
WHEREAS, the short-term agreement with Chandler Asset Management, Inc. for the period of November 16, 2021 through June 30, 2023 will enable staff to conduct a Request for Proposal process during fiscal year 2022-2023 to identify an investment services vendor for a future long-term agreement.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: That the City Council hereby authorizes the Mayor to execute the agreement, which will end on June 30, 2023.
Section 2: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
Resolution No. 2022 –
Page Two
PASSED and ADOPTED this 2nd day of August, 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Barry Schultz, Interim City Attorney
AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
CHANDLER ASSET MANAGEMENT, INC.
THIS AGREEMENT is entered into on this 2nd day of August, 2022, by and between the CITY OF NATIONAL CITY, a municipal corporation (the “C ITY”), and CHANDLER ASSET MANAGEMENT, INC., a California corporation (the “CONSULTANT”).
R E C I T A L S
WHEREAS, the CITY desires to employ a CONSULTANT to provide investment management and investment advisory services, as outlined in the attached Exhibit “A.” WHEREAS, the CITY has determined that the CONSULTANT is a an investment advisor registered with the SEC under the Investment Advisers Act of 1940 and is qualified by experience and ability to perform the s ervices desired by the CITY, and the CONSULTANT is willing to perform such services.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:
1. ENGAGEMENT OF CONSULTANT . The CITY agrees to engage the CONSULTANT to perform investment management and advisory services , and the CONSULTANT agrees to perform the services set forth here in accordance with all terms and conditions contained herein.
The CONSULTANT represents that all services shall be performed directly by the CONSULTANT or under direct supervision of the CONSULTANT.
2. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement will become effective on August 2, 2022. The duration of this Agreement is for the period of November 16, 2021 through June 30, 2023.
3. SCOPE OF SERVICES . The CONSULTANT shall provide investment management and investment advisory services in compliance with the City’s Investment Policy attached hereto as “Exhibit B ”. The CONSULTANT shall provide services as set forth in the Exhibit “A”.
The CITY may unilaterally, or upon request from the CONSULTANT, from time to time reduce or increase the Scope of Services to be performed by the CONSULTANT under this Agreement. Upon doi ng so, the CITY and the CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services.
Standard Agreement C ity of National City and
Revised January 2021 Chandler Asset
Management, Inc
4. PROJECT COORDINATION AND SUPERVISION. The Director of Administrative Services hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONSULTANT shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONSULTANT. Mia Corral Brown thereby is designated as the Project Director for the CONSULTANT.
5. COMPENSATION AND PAYMENT . The compensation for the CONSULTANT shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit “A” shall not exceed the schedule given in Exhibit “A” without prior written authorization from the City . Monthly fees shall be charged in arrears and debited directly from the balance of the CITY’S assets under management by the CONSULTANT, provided that work is accomplished consistent with Exhibit “A,” as determined by the CITY.
T
he CONSULTANT shall maintain all books, documents, pa pers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times dur ing the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY , and for furnishing of copies to the CITY, if requested.
6. ACCEPTABILITY OF WORK . The CITY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount of compensation due.
In the event the CONSULTANT and the CITY cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT in this Agreement, the CITY or the CONSULTANT shall give to the other written notice. Within ten (10) business days, the CONSULTANT and the CITY shall each prepare a report which supports their position and file the same with the other party. The CITY shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT.
7. DISPOSITION AND OWNERSHIP OF DOCUMENTS . The Memoranda, Reports, Maps, Drawings, Plans, Specifications , and other documents prepared by the CONSULTANT for this project, whether paper or electronic, shall : (1) be free from defects; (2) become the property of the CITY for use with respect to this project ; and (3) shall be turned over to the CITY upon completion of the project, or any phase thereof, as contemplated by this Agreement.
Contemporaneously with the transfer of documents, the CONSULTANT hereby assigns to the CITY, and CONSULTANT thereby expressly waives and disclaims any copyright in, and the right to reproduce, all written material, drawings, plans, specifications , or other work prepared under this A greement, except upon the CITY’S prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONSULTANT shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer.
The CONSULTANT agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium , or method utilize the CONSULTANT’S written
Standard Agreement C ity of National City and
Revised January 2021 Chandler Asset
Management, Inc
work product for the CITY’S purposes, and the CONSULTANT expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works.
Any modification or reuse by the CITY of documents, drawings , or specifications prepared by the CONSULTANT shall relieve the CONSULTANT from liability under Section 14, but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of Services of this project, unless otherwise mutually agreed.
8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners , or joint venturers with one another. Neither the CONSULTANT nor the CONSULTANT’S employees are employee s of the CITY , and are not entitled to any of the rights, benefits, or privileges of the CITY’S employees, including but not limited to retirement, medical, unemploy - ment, or workers’ compensation insurance.
This Agreement contemplates the personal services of the CONSULTANT and the CONSULTANT’S employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONSULTANT and its employees. Neither this Agreement, nor any interest herein, may be assigned by the CONSULTANT without the prior written consent of the CITY.
Nothing herein contained is intended to prevent the CONSULTANT from employing or hiring as many employees, or SUBCONSULTANTS, as the CONSULTANT may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONSULTANT with its SUBCONSULTANT(S) shall require the SUBCONSULTANT (S) to adhere to the applicable terms of this Agreement.
9. CONTROL. Neither the CITY, nor its officers, agents, or employees shall have any control over the conduct of the CONSULTANT or any of the CONSULTANT’S employees, except as set forth in this Agreement. The CONSULTANT, or the CONSULTANT’S agents, servants, or employees are not in any manner agents, servants, or employees of the CITY. The CONSULTANT and its agents, servants, and employees are wholly independent from the CITY and CONSULTANT’S obligations to the CITY are solely prescribed by this Agreement.
10. COMPLIANCE WITH APPLICABLE LAW . The CONSULTANT, in the performance of the services to be provided herein, shall comply with all applicable state and federal statutes and regulations, and all applicable ordinances, rules , and regulations of the City of National City, whether now in force or subsequently enacted. The CONSULTANT and each of its SUBCONSULTANT(S), shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement.
11. LICENSES, PERMITS, ETC . The CONSULTANT represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. CONSULTANT must promptly produce a copy of any such license, permit, or approval to CITY upon request. The CONSULTANT represents and covenants that the CONSULTANT shall, at its sole cost and expense, keep in eff ect at all times during the
Standard Agreement C ity of National City and
Revised January 2021 Chandler Asset
Management, Inc
term of this Agreement, any license, permit, or approval which is legally required for the CONSULTANT to practice its profession.
12. STANDARD OF CARE.
A. The CONSULTANT, in performing any services under this Agreement, shall pe rform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONSULTANT’S trade or profession currently practicing under similar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSULTANT’S employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site.
B. Unless disclosed in writing prior to the date of this A greement, the CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governm ental agency or involved in debarment, arbitration or litigation proceedings concerning the CONSULTANT’S professional performance or the furnishing of materials or services relating thereto.
C. The CONSULTANT is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONSULTANT has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONSULTANT has notified the CITY otherwise, the CONSULTANT warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONSULTANT to use due diligence under this sub-section will render the CONSULTANT liable to the CITY for any increased costs that result from the CITY’S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time.
13. NON-DISCRIMINATION PROVISIONS . The CONSULTANT shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONSULTANT will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.
14. CONFIDENTIAL INFORMATI ON. The CIT Y may from time to time communicate to the CONSULTANT certain confidential information to enable the CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONSULTANT shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 14, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii)
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is, through no fault of the CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party.
The CONSULTANT shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONSULTANT shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation.
CONSULTANT shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 15.
15. INDEMNIFICATION AND HOLD HARMLESS . To the maximum extent provided by law, the CONSULTANT agrees to defend, indemnify, and hold harmless the City of National City, its officers, officials, agents, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys’ fees, and defense costs, of any kind or nature, including workers’ compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONSULTANT ’S negligence, recklessness, or willful misconduct in the performance of this Agreement. CITY will cooperate reasonably in the defense of any action, and CONSULTANT shall employ competent counsel, reasonably acceptable to the City Attorney.
The indemnity, defense and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement.
15. INDEMNIFICATION AND HOLD HARMLESS . To the maximum extent provided by law, The CONSULTANT agrees to defend, indemnify and hold harmless the City of National City, its officers, officials, agents, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys’ fees, and defense costs, of any kind or nature, including workers’ compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONSULTANT’S performance or other obligations under this Agreement; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers. CITY will cooperate reasonably in the defense of any action, and CONSULTANT shall employ competent counsel, reasonably acceptable to the City Attorney.
The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement.
16. EMPLOYEE PAYMENTS AND INDEMNIFICATION.
16.1 PERS Eligibility Indemnification . If CONTRACTOR ’s employee(s) providing services under this Agreement claims, or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS of the CITY, CONTRACTOR shall indemnify, defend, and hold harmless CITY for the payment
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of any employer and employee contributions for PERS benefits on behalf of the employee as well as for payment of any penalties and interest on such contributions which would otherwise be the responsibility of the CITY.
CONTRACTOR’S employees providing service under this Agreement shall not:
(1) qualify for any compensation and benefit under PERS; (2) be entitled to any benefits under PERS; (3) enroll in PERS as an employee of CITY; (4) receive any employer contributions paid by CITY for PERS benefits; or (5) be entitled to any other PERS-related benefit that would accrue to a CITY employee. CONTRACTOR’s employees hereby waive any claims to benefits or compensation described in this Section 16. This Section 16 applies to CONTRACTOR notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary.
16.2 Limitation of CITY Liability . The payment made to CONTRACTOR under this Agreement shall be the full and complete co mpensation to which CONTRACTOR and CONTRACTOR’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither CONTRACTOR nor CONTRACTOR’s officers, employees, agents, and subcontractors are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to CITY employees. The CITY will not make any federal or state tax withholdings on behalf of CONTRACTOR. The CITY shall not be required to pay any workers’ compensation insurance on behalf of CONTRACTOR.
16.3 Indemnification for Employee Payments . CONTRACTOR agrees to defend and indemnify the CITY for any obligation, claim, suit, or demand for tax, retirement contribution including any contribution to PERS, social security, salary or wages, overtime payment, or workers’ compensation payment which the CITY may be required to make on behalf of (1) CONTRACTOR, (2) any employee of CONTRACTOR, or (3) any employee of CONTRACTOR construed to be an employee of the CITY, for work performed under this Agreement. This is a continuing obligation that survives the termination of this Agreement.
17. WORKERS’ COMPENSATION. The CONSULTANT shall comply with all of the provisions of the Workers’ Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Labor Code and all amendments thereto; and all similar State or federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, emplo yees, and volunteers from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including reasonable attorney’s fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONSULTANT under this Agreement.
18. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONSULTANT(S), when applicable, to purchase and maintain throughout the term of this Agreement, the following insurance policies:
A. I f checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence.
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B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles . The policy shall name the CITY and its officers, agents , employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided.
C. Commercial General Liability Insurance, with minimum limits of either $2,000,000 per occurrence and $4,000,000 aggregate, or $1,000,000 per occurre nce and $2,000,000 aggregate with a $2,000,000 umbrella policy, covering all bodily injury and property damage arising out of its operations, work, or performance under this Agreement. The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to this “project” or “location”. The “project” or “location” should be noted with specificity on an endorsement that shall be incorporated into the policy.
D. Workers’ Compensation Insurance in an amount sufficient to meet statutory requirements cove ring all of CONSULTANT’S employ ees and employers’ liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the CITY . Said endorsement shall be provided prior to commencement of work under this Agreement.
If CONSULTANT has no employees subject to the California Workers’ Compensation and Labor laws, CONSULTANT shall execute a Declaration to that effect. Said Declaration shall be provided to CONSULTANT by CITY.
E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, officials, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY’s Risk Manager, at the address listed in subsection G below, of cancellation or material change.
F. If required insurance coverage is provided on a “claims made” rather than “occurrence” form, the CONSULTANT shall maintain such insurance coverage for three years after expiration of the term (an d any extensions) of this Agreement. In addition, the “ retro” date must be on or before the date of this Agreement.
G. T
he Certificate Holder for all policies of insurance required by this Section shall be:
City of National City
c/o Risk Manager
1243 National City Boulevard
National City, CA 91950-4397
H. I
nsurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder’s alphabetic and financial size category rating of not less than A:VII according to the current Best’s Key Rating Guide, or a company of equal financial stability that is approved by the CITY’S Risk Manager. In the event coverage is provided by non- admitted “surplus lines” carriers, they must be included on the most recent List of Ap proved Surplus Line Insurers (“LASLI”) and otherwise meet rating requirements.
I. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the
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CITY’S Risk Manager. If the CONSULTANT does not keep all insur ance policies required by this Section 18 in full force and effect at all times during the term of this Agreement, the CITY may treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein.
J. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. CITY reserves the right to modify the insurance requirements of this Section 18, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
K. If the CONSULTANT maintains broader coverage or higher limits (or both) than the minimum limits shown above, the CITY shall be entitled to the broader coverage or higher limits (or both) maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
19. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out-of-court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys’ fees.
For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney’s fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney’s fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney’s fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney’s fees incurred by the prevailing party.
20. TERMINATION.
A. This Agreement may be terminated with or without cause by the CITY.
Termination without cause shall be effective only upon 60 -day’s written notice to the CONSULTANT. During said 60- day period the CONSULTANT shall perform all services in accordance with this Agreement.
B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONSULTANT in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY.
C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONSULTANT as provided for herein.
D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONSULTANT, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CON SULTANT shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONSULTANT’S breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 7.
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E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONSULTANT; (2) a reorganization of the CONSULTANT for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONSULTANT.
21. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons:
To CITY: Director of Administrative Services
Finance Department
City of National City
1243 National City Boulevard
National City, CA 91950-4397
To
CONSULTANT:
Mia Corral, Senior Relationship Manager
Chandler Asset Management, Inc.
6225 Lusk Boulevard
San Diego, CA 92121
N
otice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty -eight (48) hours by letter mailed or delivered as specified in this Section.
22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. During the term of this Agreement, the CONSULTANT shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City . The CONSULTANT also agrees not to specify any product, treatment, process or material for the project in which the CONSULTANT has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONSULTANT shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONSULTANT shall immediately disqualify itself and shall not use its official
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position to influence in any way any matter coming before the CITY in which the CONSULTANT has a financial interest as defined in Government Code Section 87103. The CONSULTANT represents that it has no knowledge of any financial interests that would requir e it to disqualify itself from any matter on which it might perform services for the CITY.
If checked, the CONSULTANT shall comply wi th all of the reporting requirements of the Political Reform Act and the National C ity Conflict of Interest Code.
Specifically, the CONSULTANT shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONSULTANT shall obtain from the City Clerk.
The CONSULTANT shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Section 22 by the CONSULTANT.
23. PREVAILING WAGES. State prevailing wage rates may apply to work performed under this Agreement. State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, including but not limited to, Sections 1720, 1720.2, 1720.3, 1720.4, and 1771. Consultant is solely responsible to determine if State prevailing wage rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and regulations.
24. ADMINISTRATIVE PROVISIONS.
A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state, or legal holiday.
B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument.
C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto.
E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. To the extent any exhibits, schedules, or provisions thereof conflict or are inconsistent with the terms and conditions contained in this Agreement, the terms and conditions of this Agreement shall control.
F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto.
G. Assignment & Assumption of Rights. CONSULTANT shall not assign this Agreement, in whole or in part, to any other party without first obtaining the written consent of CITY.
H. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof.
I. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. The venue for any legal action arising under
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this Agreement shall be in either state or federal court in the County of San Diego, State of California.
J. Audit. If this Agreement exceeds ten-thousand dollars ($10,000), the parties shall be subject to the examination and audit of the State Auditor for a period of three (3) years after final payment under the Agreement, per Government Code Section 8546.7.
K. Entire Agreement. This Agreement supersedes any prior agree ments, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby.
L. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto.
M. Subcontractors or Subconsultants. The CITY is engaging the services of the CONSULTANT identified in this Agreement. The CONSULTANT shall not subcontract any portion of the work, unless such subcontracting was part of the original proposal or is allowed by the CITY in writing. In the event any portion of the work under this Agreement is subcontracted, the subconsultant(s) shall be required to comply with and agree to, for the benefit of and in favor of the CITY, both the insurance provisions in Section 18 and the indemnification and hold harmless provision of Section 15 of this Agreement.
N. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party’s counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written.
CITY OF NATIONAL CITY
B
y: ____________________________
Alejandra Sotelo Solis, Mayor
AP
PROVED AS TO FORM:
B
y: ____________________________
Jennifer K. Gilman
Assistant City Attorney
CHANDLER ASSET MANAGEMENT, INC.
B
y: ______________________________
(Name)
______________________________
(Print)
______________________________
(Title)
B
y: ______________________________
(Name)
______________________________
(Print)
______________________________
(Title)
Nicole Dragoo
President
Martin Cassell
CEO
Exhibit “A”
CHANDLER ASSET MANAGEMENT, INC.
SCOPE OF SERVICES
OTHER TERMS AND CONDITIONS
1. Scope of Services . CHANDLER ASSET MANAGEMENT, INC. (“CONSULTANT”) shall provide investment management and investment advisory services for the CITY OF NATIONAL CITY (“CITY”) on all funds authorized by the CITY to be managed by the CONSULTANT. Other servcices to be provided to the CITY by the CONSULTANT include, but are not limited to the following:
a. developing and implementing sound investment strategies which will maximize the portfolio ’s performance within the parameters of the adopted investment policy and California government codes;
b. providing technical and fundamental market research, including yield curve analysis;
c. providing credit analysis of investment instruments in the portfolio; d. providing monthly investment reports for the portfolio detailing holdings, composition and sector analysis, return, weighted average maturity, and daily transaction activity;
e. providing the CITY with on -line access to its curre nt investment account information;
f. providing semi-annual and annual performance reports, as needed; g. reviewing safekeeping and custodial procedures and agreements; h. at a minimum, meeting with CITY staff on a quarterly basis to review the investment portfolio and investment performance;
i. at a minimum, delivering semi-annual presentations to the City Council of the City of National City on the performance of the CITY’S portfolio; j. as needed, advising the CITY on recommended changes to its investment policy based upon legislative changes and other relevant market conditions and attending the City Council meeting in which the annual update to the investment policy is presented, if requested by the CITY; k. assisting the CITY in analyzing its cash flow requirements to determine the amount of funds to be invested;
l. assisting the CITY in determining its investment risk tolerance and appropriate portfolio benchmark;
m. providing other services as agreed upon.
2. Fees. The CITY shall compensate the CONSULTANT an amount calculated on the average market value of the CITY ’S assets under managment by the CONSULTANT, including accrued interest, in accordance with the following schedule:
Assets under Management Annual Asset Management Fee
First $10 million 0.10 of 1% (10 basis points)
Next $30 million 0.08 of 1% (8 basis points)
Assets in excess of $40 million 0.06 of 1% (6 basis points) The fees expressed above do not include custody fees the CITY may incur for third party custodial services.
Fees shall be prorated to the effective date of termination on the basis of actual days elapsed, and any unearned portion of prepaid fees shall be refunded. The CITY is not required to pay any start-up or closing fees; there are not penalty fees.
Fees shall be charged monthly in arrears and debited directly for the CITY’S third party custody account.
3. CITY Representative. In its capacity as investment manager, the CONSULTANT shall receive all instructions, directions, and other communications on the CITY ’S behalf regarding the CITY’S account from the Director of Administrative Services (“Representative”). The CONSULTANT is hereby authorized to rely and act upon all such instructions, directions, and communications from the Representative or any agent designated by the Representative.
4. Investment Policy. In investing and reinvesting the CITY ’S assets, the CONSULTANT shall comply with the CITY’S investment policy attached hereto as “Attachment 1.”
5. Autority of CONSULTANT. The CONSULTANT is hereby granted full discretion to invest and reinvest all assets under its management in any typ e of security it deems appropriate, subject to the instructions given or guidelines set by the Representative.
6. Electronic Delivery. From time to time, the CONSULTANT may be required to deliver certain documents to the CITY, such as account information, notices, and required disclosures. The CITY hereby consents to the CONSULTANT’S use of electronic means, such as e -mail, to make such delivery. This delivery may include notification of the availability of such document(s) on a website, and the CITY agrees that such notifications will constitute “delivery.” The CITY further agrees to provide the CONSULTANT with the CITY’S e-mail address(es) and to keep this information current at all times by promptly notifying the CONSULTANT of any change in e-mail address(es).
CITY e-mail addresses: [email protected];
[email protected]
7. Proxy Voting . The CONSULTANT will vote proxies on behalf of the CITY unless otherwise instructed. The CONSULTANT has adopted and implemented written policies and procedures and will provide the CITY with a description of the proxy voting procedures upon request. The CONSULTANT will provide information regarding how the C ITY’S proxies were voted upon request.
8. Custody of Securities and Funds . The CONSULTANT shall not have custody or possession of the funds or securities that the CITY has placed under its management. The CITY shall appoint a custodian to take and have possession of its assets. The CITY recognizes the importance of comparing statements received from the appointed custodian to statements received from the CONSULTANT. The CITY recognizes that the fees expressed above do not include fees the CITY will incur for custodial services.
9. Valuation. The CONSULTANT will value securities he ld in portfolios managed by the CONSULTANT no less than monthly. Securities or investments in the portfolio will be valued in a manner determined in good faith by the CONSULTANT to reflect fair market value.
10. Investment Advice. The CITY recognizes that the opinions, recommendations, and actions of the CONSULTANT will be based on information deemed by it to be reliable, but not guaranteed to or by it. Provided that the CONSULTANT acts in good faith, the CITY agrees that the CONSULTANT will not in any way be liable for any error in judgment or for any act or omission, except as may otherwise be provided for under the Federal Securities laws or other applicable laws.
11. Payment of Commissions. The CONSULTANT may place buy and sell orders with or through such brokers or dealers as it may select. It is the policy and practice of the CONSULTANT to strive for the best price and execution and for commission s and discounts which are competitive in relation to the value of the transaction and which comply with Section 28(e) of the Securities and Exchange Act. Nevertheless, it is understood that the CONSULTANT may pay a commission on transactions in excess of the amount another broker or dealer may charge, and that the CONSULTANT makes no warranty or representation regarding commissions paid on transactions hereunder.
12. Other Clients. It is further understood that the CONSULTANT may be acting in a similar capacity for other institutional and individual clients, and that investments and reinvestments for the CITY’S portfolio may differ from those made or recommended with respect to other accounts and clients, although the investment objectives may be the same or similar. Accordingly, it is agreed that the CONSULTANT will have no obligation to purchase or sell for the CI TY’S account any securities which it may purchase or sell for other clients.
13. Receipt of Bochure and Privacy Policy . Receipt of Brochure and Privacy Policy. The ClTY has received the disclosure statement or “brochure” also known as Part 2A of Form ADV, required to be delivered pursuant to Rule 204 -3 of the Investment Advisers Act of 1940 (Brochure). The CITY has received a copy of the CONSULTANT’S Privacy Policy.
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
AMENDED: June 21, 2022
ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
I. INTRODUCTION
The City of National City’s investment program will conform to federal, state, and other legal requirements, including California Government Code Sections 16429.1-16429.4, 53600- 53609, and 53630-53686. The following investment policy addresses the methods, procedures, and practices which must be exercised to ensure effective and judicious fiscal and investment management of the City’s funds. It is the policy of the City to invest public funds in a manner that will provide a market rate of return, given its requirements for preserving principal and meeting the daily cash flow demands of the City. All investments will comply with this Investment Policy and governing laws.
This Investment Policy replaces any previous Investment Policy or Investment Procedures of the City.
II. SCOPE
This Investment Policy applies to all the City’s financial assets and investment activities with the following exception(s):
Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures.
Pooling of Funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration.
Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.
III. GENERAL OBJECTIVES
The overriding objectives of the investment program are to preserve principal, provide sufficient liquidity, and manage investment risks.
1. Safety: Safety of principal is the foremost objective of the investment program.
Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
AMENDED: June 21, 2022
ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
3. Return: The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.
IV. PRUDENCE, INDEMNIFICATION, AND ETHICS
A. Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in California Government Code Section 53600.3:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of a n overall strategy, investments may be acquired as authorized by law.” B. Indemnification: The Administrative Services Director or City Manager designee hereinafter designated as Financial Services Officer and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the Investment Policy and exercising due diligence, will be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments.
C. Ethics: Officers and employees involved in the investment process will refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
V. DELEGATION OF AUTHORITY
A. Authority to manage the City’s investment program is derived from California Government Code Section 53600 et seq. The City Council is responsible for the City’s cash management, including the administration of this Investment Policy. Management responsibility for the cash management of City funds is hereby delegated to the Administrative Services Director and/or Financial Services Officer.
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The Administrative Services Director or designee will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employee.
B. The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.
VI. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence described in the investment procedures manual. These may include “primary” dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).
A. The City’s Administrative Services Director or designee will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include:
1. Primary government dealers as designated by the Federal Reserve Bank;
2. Nationally or state-chartered banks;
3. The Federal Reserve Bank; and
4. Direct issuers of securities eligible for purchase.
B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City.
C .All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Administrative Services Director or designee with a statement certifying that the institution has reviewed California Government Code Section 53600 et seq. and the City’s Investment Policy.
D. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser.
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E. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.
VII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVE TRANSACTIONS A. Delivery-versus-payment: Settlement of all investment transactions will be completed using standard delivery-vs.-payment procedures.
B. Third-party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third party bank custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City.
C. Competitive transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions or through the use of a nationally recognized trading platform.
VIII. AUTHORIZED AND SUITABLE INVESTMENTS
All investments will be made in accordance with California Government Code Section 53600 et seq. and as described within this Investment Policy. Permitted investments under this policy will include:
1. Municipal Bonds. These include bonds of the City, the State of California, any other municipality, within the state of California. The bonds will be registered in the name of the City or held under a custodial agreement at a bank.
a. Are rated in the category of “A” or better by at least two nationally recognized statistical rating organizations; and
b. No more than 5% per issuer.
c. No more than 30% of the total portfolio may be invested in municipal bonds.
2. US Treasury and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in US Treasuries.
3. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to
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principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises.
4. Banker’s acceptances, provided that:
a. They are issued by institutions with short term debt obligations rated “A1” or higher, or the equivalent, by at least two nationally recognized statistical-rating organizations (NRSRO); and have long-term debt obligations which are rated “A” or higher by at least two nationally recognized statistical rating organizations; b. The maturity does not exceed 180 days; and
c. No more than 40% of the total portfolio may be invested in banker’s acceptances and no more than 5% per issuer.
5. Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
a. The amount per institution is limited to the maximum covered under federal insurance; and
b. The maturity of such deposits does not exceed 5 years.
6. Certificate of Deposit Placement Service (CDARS)
a. No more than 30% of the total portfolio may be invested in a combination of certificates of deposit including CDARS
b. The maturity of CDARS deposits does not exceed 5 years.
7. Negotiable certificates of deposit (NCDs), provided that:
a. They are issued by institutions which have long-term obligations which are rated “A” or higher by at least two nationally recognized statistical rating organizations; and/or have short term debt obligations rated “A1” or higher, or the equivalent, by at least two nationally recognized statistical rating organizations; b. The maturity does not exceed 5 years; and
c. No more than 30% of the total portfolio may be invested in NCDs and no more than 5% per issuer.
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8. Commercial paper, provided that:
a. The maturity does not exceed 270 days from the date of purchase; b. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million;
c. They are issued by institutions whose short term obligations are rated “A -1” or higher, or the equivalent, by at least two nationally recognized statistical rating organizations; and whose long-term obligations are rated “A” or higher by at least two nationally recognized statistical rating organizations; and d. No more than 25% of the portfolio is invested in commercial paper and no more than 5% per issuer.
9. State of California Local Agency Investment Fund (LAIF), provided that:
a. The City may invest up to the maximum permitted amount in LAIF; and b. LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude it from the City’s list of allowable investments, provide d that the fund’s reports allow the Administrative Services Director or Financial Services Officer or designee to adequately judge the risk inherent in LAIF’s portfolio.
10. Local government investment pools.
a. San Diego County Investment Pool
11. Corporate medium term notes (MTNs), provided that:
a. Such notes have a maximum maturity of 5 years;
b. Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States;
c. Are rated “A” category or better by at least two nationally recognized statistical rating organizations; and
d. Holdings of medium-term notes may not exceed 30% of the portfolio and no more than 5% per issuer.
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12. Mortgage pass-through securities, asset-backed securities, and collateralized mortgage obligations,[AS1] provided that such securities:
,
a. Have a maximum stated final maturity of 5 years.
b. Be rated in a rating category of “AA” or its equivalent or better by a nationally recognized statistical rating organization.
c. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio.
13. Money market mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940:
a. Provided that such funds meet either of the following criteria:
1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or,
2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code Section 53601 (a through j) and with assets under management in excess of $500 million.
b. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio.
14. Supranationals, provided that:
a. Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
b. The securities are rated in a category of “AA” or higher by a NRSRO. c. No more than 30% of the total portfolio may be invested in these securities. d. No more than 10% of the portfolio may be invested in any single issuer.
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e. The maximum maturity does not exceed five (5) years.
IX. PORTFOLIO RISK MANAGEMENT
A. The following are prohibited investment vehicles and practices:
1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.
2. In accordance with California Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
3. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.[AS2]
4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
5. Purchasing or selling securities on margin is prohibited.
6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
7. The purchase of foreign currency denominated securities is prohibited.
B. Mitigating credit risk in the portfolio
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
1. The diversification requirements included in Section IX are designed to mitigate credit risk in the portfolio;
2. No more than 5% of the total portfolio may be invested in securities of any single issuer, except as noted in Section VIII of this Investment Policy;
3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity, or yield of the portfolio in response to market conditions or the City’s risk preferences; and
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4. If securities owned by the City are downgraded by either Moody’s or S&P to a level below the quality required by this Investment Policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
a. If a security is downgraded, the Administrative Services Director or designee will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.
C. Mitigating market risk in the portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short- term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes. The City further recognizes that certain types of securities, including variable rate securities, securities with principal pay-downs prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
1. The City will maintain a minimum of three months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements;
2. The maximum percent of callable securities (does not include “make whole call” securities as defined in the Glossary) in the portfolio will be 20%;
3. The maximum stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy; and
4. The duration of the portfolio will at all times be approximately equal to the duration (typically plus or minus 20%) of a Market Benchmark Index selected by the City based on the City’s investment objectives, constraints and risk tolerances. The City’s current Benchmark will be documented in the investment procedures manual.
X. INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION)
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A. Overall objective: The investment portfolio will be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs.
B. Specific objective: The investment performance objective for the portfolio will be to earn a total rate of return over a market cycle which is approximately equal to the return on the Market Benchmark Index as described in the City’s investment procedures manual.
XI. PROCEDURES AND INTERNAL CONTROLS
A. Procedures: The Director of Administrative Services or designee will establish written investment policy procedures in a separate investment procedures manual to assist investment staff with day- to-day operations of the investment program consistent with this policy. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Administrative Services or designee.
B. Internal Controls: The Director of Administrative Services or designee is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The internal control structure will be designed to provide reasonable assurance that these objectives are met. Internal controls will be in the City’s investment procedures manual.
XII. REPORTING AND REVIEW
A. Monthly reports: The Director of Finance and/or Financial Services Officer must submit a monthly report to the legislative body accounting for transactions made during the reporting period.
B. Quarterly reports: Quarterly investment reports will be submitted by the Administrative Services Director or designee to the City Council, at an agendized meeting. Consistent with the requirements contained in California Government Code Section 53646, information in the quarterly investment reports shall include, but not be limited to, the following:
1. Type of investment
2. Name of issuer and/or financial institution
3. Date of purchase
4. Date of maturity
5. Current market value for all securities
6. Rate of interest
7. Purchase price of investment
8. Other data as required by the City
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C. Annual Policy review: The Investment Policy will be reviewed at least annually and, as necessary, adopted, to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends.
Related Policy References
California Government Code Sections: 16429.1 – 16429.4, and 53600 – 53609 and 53630-53686 Investment Company Act of 1940
Investment Advisers Act of 1940
Securities and Exchange Commission Rule #15C3-1
Appendix I attached: “Authorized Personnel”
Appendix II attached: “Glossary of Investment Terms”
Prior Policy Amendments
October 23, 1990 – Established Policy
May 9, 1995 (Resolution No. 95-62) Updated Policy and Inclusion in the Policy Manual and Amend policy adopted October 23, 1990
August 6, 1996 (Resolution No. 96-130)
August 26, 1997 (Resolution No. 97-110)
October 6, 1998 (Resolution No. 98-136)
September 7, 1999 (Resolution No. 99-130)
October 2, 2001 (Resolution No. 2001-151)
October 1, 2002 (Resolution No. 2002-149)
October 7, 2003 (Resolution No. 2003-139)
June 7, 2005 (Resolution No. 2005-118)
October 4, 2005 (Resolution No. 2005-215)
August 21, 2007 (Resolution No. 2007-202)
February 19, 2008 (Resolution No. 2008-37)
February 19, 2008 (Resolution No. 2008-38) CDC
January 10, 2012 (Resolution No. 2012- 09)
December 10, 2013 (Resolution No. 2013-189)
December 16, 2014 (Resolution No. 2014-172)
December 15, 2015 (Resolution No. 2015-186)
December 6, 2016 (Resolution No. 2016-189)
October 17, 2017 (Resolution No. 2017- 203)
November 20, 2018 (Resolution No. 2018-189)
August 18, 2020 (Resolution No. 2020-151)
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Appendix I
Authorized Personnel
The following positions are authorized to transact investment business and wire funds for investment purposes on behalf of the City of National City:
City Manager
Assistant City Manager
Financial Services Officer
Director of Administrative Services or designee
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Appendix II
GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:
FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full faith and credit of the US government to certain bank deposits and debt obligations.
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities.
FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass-through securities.
GNMA. The Government Nat ional Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds.
Asked. The price at which a seller offers to sell a security.
Asset-Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
Average life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
Banker’s acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
Bid. The price at which a buyer offers to buy a security.
Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.
Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower
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rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when rates are lower than when the investment was initially made.
Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.
Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
Commercial paper. The short-term unsecured debt of corporations.
Cost yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.
Coupon. The rate of return at which interest is paid on a bond.
Credit risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.
Current yield. The annual income from an investment divided by the current market value.
Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yi eld is unrelated to the actual return the investor will earn if the security is held to maturity.
Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.
Debenture. A bond secured only by the general credit of the issuer.
Delivery vs. payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.
Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” c oupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate or index.
Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to
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changes in interest rates. (See modified duration).
Federal funds rate. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.
Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
Haircut: The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction (i.e. a repo).
Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.
Liquidity: The speed and ease with which an asset can be converted to cash.
Local Agency Investment Fund (LAIF). A voluntary investment fund managed by the California State Treasurer’s Office open to government entities and certain non -profit organizations in California.
Local Government Investment Pool. Investment pools including the Local Agency Investment Fund (LAIF), county pools, joint powers authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.
Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or “made whole.”
Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.
Market risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.
Market value. The price at which a security can be traded.
Marking to market. The process of posting current market values for securities in a portfolio.
Maturity. The final date upon which the principal of a security becomes due and payable .
Medium term notes . Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
Modified duration. The percent change in price for a 100 basis point change in yields.
Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.
Money market. The market in which short term debt instruments (T-bills, discount notes, commercial paper and banker’s acceptances) are issued and traded.
Mortgage pass-through securities. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
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Municipal Securities. Securities issued by state and local agencies to finance capital and operating expenses.
Mutual fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.
Nationally Recognized Statistical Rating Organization (NRSRO). A credit rating agency the United States Securities and Exchange Commission uses for regulatory purposes.
Credit rating agencies provide assessments of an investment’s risk. The i ssuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody’s.
Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.
Prepayment speed. A measure of how quickly principal is repaid to investors in mortgage securities.
Prepayment window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.
Primary dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out US monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the US Government securities market.
Prudent person (man) rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” Realized yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.
Regional dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities, and that is not a primary dealer.
Repurchase agreement (RP, Repo). Short term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.
Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.
Short Term. Less than one (1) years’ time.
Structured note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse
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floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and “dual index floaters,” which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
Supranational. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.
Total rate of return. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.
US Treasury obligations. Securities issued by the US Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.
Treasury bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.
Treasury notes. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually.
Treasury bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.
Value. Principal plus accrued interest.
Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.
Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.
AGENDA REPORT
Department: Engineering
Prepared by: Carla Hutchinson, Assistant Engineer – Civil Meeting Date: Tuesday, August 2, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
CalRecycle SB 1383 Grant – Funds Appropriation
RECOMMENDATION:
Approve the Resolution entitled, “ Resolution of the City Council of the City of National City, California, (1) Ratifying Acceptance of Funds in the Total Amount of $89,461, Awarded to the City of National City from the SB 1383 Local Assistance Grant Program from the California Department of Resources Recycling and Recovery ( CalRecycle) to Implement Regulation Requirements Associated with SB 1383, and; (2) Authorizing the Acceptance of the SB 1383 Local Assistance Grant Program Funds for $89,461, and the Establishment of Corresponding Expenditure Budget.
BOARD/COMMISSION PRIOR ACTION:
N/A
EXPLANATION:
The Department of Resources Recycling and Recovery (CalRecycle ) administered a one -time grant program to provide assistance to jurisdictions in the implementation of regulations associated with SB 1383, including capacity planning, collection, edible food recovery, education and outreach, enforcement and inspection, program evaluation, procurement requirements, and record keeping.
On January 31, 2022, the City submitted a grant application in the amount of $81,800 for the SB 1383 Local Assistant Grant Program. On April 27, 2022, CalRecycle notified the City that National City had been awarded a grant award of $89,461. The period of performance to deliver the project ends on May 2, 2024.
The funds will be used to support the City’s edible food recovery program by providing education, outreach and general support to Tier 1 & Tier 2 generators. The City will also use these funds to inspect Tier 1 & Tier 2 generators and to train city staff to conduct these inspections for future years. Reporting will require submitting back -up documentation, i ncluding proof of all expenditures. Failure to meet this reporting due date may result in the denial of funding and collection of unspent/unreported funds.
Staff is requesting acceptance of funds and establishment of corresponding expenditure budget in the total amount of $89,461.
FINANCIAL STATEMENT:
Expenditure Account No. 172-416-225-399-9079
Corresponding revenues have been received and were deposited in account #172-00000-3463.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Health, Environment, and Sustainability
ENVIRONMENTAL REVIEW:
This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Resolution
RESOLUTION NO. 2022 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA (1) RATIFYING ACCEPTANCE OF FUNDS IN THE TOTAL AMOUNT OF $89,461 AWARDED TO THE CITY OF NATIONAL CITY FROM THE SB 1383
LOCAL ASSISTANCE GRANT PROGRAM FROM THE CALIFORNIA DEPARTMENT
OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) TO IMPLEMENT REGULATION REQUIREMENTS ASSOCIATED WITH SB 1383 AND (2) AUTHORIZING THE ACCEPTANCE OF THE SB 1383 LOCAL ASSISTANCE GRANT PROGRAM FUNDS FOR $89,461 AND THE ESTABLISHMENT OF
CORRESPONDING EXPENDITURE BUDGET
WHEREAS, the Department of Resources Recycling and Recovery (CalRecycle) administered a one -time grant program to provide assistance to jurisdictions in the implementation of regulations associated with SB 1383; and
WHEREAS, on January 31, 2022, the City submitted a grant application in the amount of $81,800 for the SB 1383 Local Assistant Grant Program; and WHEREAS, on April 27, 2022, CalRecycle notified the City that National City had been awarded a grant award of $89,461; and
WHEREAS, the period of performance to deliver the project ends on May 2, 2024; and
WHEREAS, the funds will be used to support the City’s edible food recovery program by providing education, outreach and general support to Tier 1 & Tier 2 generators; and
WHEREAS, the City will also use these funds to inspect Tier 1 & Tier 2 generators and to train city staff to conduct these inspections for future years; and
WHEREAS, City staff requests acceptance of funds and establishment of corresponding expenditure budget in the total amount of $89,461.; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Ratify and authorize the acceptance of funds in the total amount of $89,461 awarded to the City of National City from the SB 1383 Local Assistance Grant Program from the California Department of Resources Recycling and Recovery (CalRecycle) to implement regulation requirements associated with SB 1383.
Section 2: Authorize the establishment of the corresponding expenditure fund appropriation of $89,461 and corresponding revenue budget.
Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
Resolution No. 2022 –
Page Two
PASSED and ADOPTED this 2nd day of August, 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Barry Schultz, Interim City Attorney
AGENDA REPORT
Department: Engineering
Prepared by: Carla Hutchinson, Assistant Engineer - Civil Meeting Date: Tuesday, August 2, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
Acceptance of Ocean Protection Council Proposition 1 Grant , Authorizing City Manager to Execute Grant Agreement, and Establish Grant Fund Appropriation.
RECOMMENDATION:
Adopt the Resolution entitled, “Resolution of the City Council of the City of National City, California (1) Accepting the Ocean Protection Council Proposition 1 Grant; (2) Authorizing the City Manager or Designee to Execute the Grant Agreement for the Paradise Creek Wetland and Park Site Project in the amount of $957,000; and (3) Approving the Establishment of an Engineering Grant Funds Appropriation of $957,000 and Corresponding Revenue Budget to Allow for Reimbursement of Eligible Project Expenditures.”
BOARD/COMMISSION PRIOR ACTION:
Not Applicable.
EXPLANATION:
On June 30, 2021, the City submitted a grant application in the amount of $957,000 for the California Ocean Protection Council Proposition 1 Grant Program.
The proposed project includes the demolition of a portion of the existing industrial land u se, wetland expansion, and creation of a park /educational picnic area, installation of five trash control devices, interpretive signage, and sidewalk improvements. The Project will have a local and regional watershed impact through creating native wetland habitat for local wildlife in an Environmentally Sensitive Area within the City. The project drains to Paradise Marsh (Sweetwater Marsh Unit) which is part of the San Diego Bay National Wildlife Refuge. The wetland expansion allows for connectivity to the salt marsh habitat to improve native wildlife biodiversity, which is suitable for endangered, threatened, migratory, and native species, as well as minimize the localized flooding on W 18th Street from tidal influences in the creek. At the project site, the wetland expansion will filter pollutants, including phosphorus, from overland runoff that discharge directly into Paradise Creek through natural processes. The wetland habitat quality will improve to protect the ecological value of Paradise Creek and the San Diego Bay National Wildlife Refuge.
On January 13, 2022, the Ocean Protection Council notified the City that the Paradise Creek Wetland Expansion and Park Site Project had been awarded a grant award of $957,000 with an $111,578 in-kind contribution of City staff for a total project cost of $1,068,578. The period of performance to deliver the project ends December 31, 2024.
City’s staff is requesting grant agreement execution and authorization to establish an Engineering Grants Fund appropriation of $957,000.00 and corresponding revenue budgets to allow for reimbursement of eligible project expenditures through the California Ocean Protection Council (OPC).
FINANCIAL STATEMENT:
Paradise Creek Wetland Expansion and Park Site Project - $957,000.00 Expenditure Account – 296-409-500-598-6202
Revenue Account – 296-06202-3463
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Not Applicable
ENVIRONMENTAL REVIEW:
This is a project under CEQA and requires full environmental review and the preparation of an environmental impact report. CCR 15362.
PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
1) Grant agreement
2) Exhibit A – Work Plan
3) Exhibit B – Wetland Expansion and Park Site Concept Map 4) Resolution
Existing Structure
Repurposed as Community
Center w/ Public Art
Components
Creek/ Wetland Expansion
Existing Conditions Proposed Concept
Ex. Access Road to Remain
(70 LF from Curb) for
Emergency Maintenance
and Repairs in Creek
Existing Structure Repurposed
as Community Education and
Picnic Center w/ Public Art
Components
RESOLUTION NO. 2022 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA (1) ACCEPTING THE OCEAN PROTECTION COUNCIL PROPOSITION 1 GRANT; (2) AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE
THE GRANT AGREEMENT FOR THE PARADISE CREEK WETLAND AND PARK SITE PROJECT IN THE AMOUNT OF $957,000; AND (3) APPROVING THE
ESTABLISHMENT OF AN ENGINEERING GRANT FUNDS APPROPRIATION OF $957,000 AND CORRESPONDING REVENUE BUDGET TO ALLOW FOR
REIMBURSEMENT OF ELIGIBLE PROJECT EXPENDITURES
WHEREAS, on June 30, 2021, the City submitted a grant application in the amount of $957,000 for the California Ocean Protection Council Proposition 1 Grant Program; and
WHEREAS, the proposed project includes the demolition of a portion of the existing industrial land use, wetland expansion, creation of a park/educational picnic area, installation of five trash control devices, interpretive signage, and sidewalk improvements; and
WHEREAS, the Project will have a local and regional watershed impact through creating native wetland habitat for local wildlife in an Environmentally Sensitive Area within the City; and
WHEREAS, the wetland expansion allows for connectivity to the salt marsh habitat to improve native wildlife biodiversity, which is suitable for endangered, threatened, migratory, and native species, as well as minimize the localized flooding on W 18th Street from tidal influences in the creek; and
WHEREAS, at the project site, the wetland expansion will filter pollutants, including phosphorus, from overland runoff that discharge directly into Paradise Creek through natural processes; and
WHEREAS, he wetland habitat quality will improve to protect the ecol ogical value of Paradise Creek and the San Diego Bay National Wildlife Refuge; and
WHEREAS, on January 13, 2022, the Ocean Protection Council notified the City that the Paradise Creek Wetland Expansion and Park Site Project had been awarded a grant award of $957,000 with an $111,578 in-kind contribution of City staff for a total project cost of $1,068,578; and
WHEREAS, the period of performance to deliver the project ends December 31, 2024; and
WHEREAS, City staff requests grant agreement execution and authorization to establish an Engineering Grants Fund appropriation of $957,000.00 and corresponding
revenue and expenditure budgets to allow for reimbursement of eligible project expenditures through the California Ocean Protection Council (OPC); and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Authorize the acceptance of the Ocean Protection Council Proposition 1 Grant.
Section 2: Authorize the City Manager or designee to execute the grant agreement for the Paradise Creek Wetland and Park Site Project in the amount of $957,000.
Section 3: Authorize the establishment of the corresponding Engineering Grant Funds Appropriation of $957,000 and corresponding revenue budget to allow for reimbursement of eligible project expenditures.
Section 4: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
Resolution No. 2022 –
Page Two
PASSED and ADOPTED this 2nd day of August, 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Barry J. Schultz, Interim City Attorney
OPC Grant Agreement No. P01-4-06
GRANT AGREEMENT
State of California - The Natural Resources Agency/Ocean Protection Council Grantee Name: City of National City
P
roject Title: Paradise Creek Wetland Expansion and Park Site A
greement Number: P01-4-06
A
uthority: Proposition 1, The Water Quality, Supply, and Infrastructure Improvement Act of 2014, California Water Code, Division 26.7, implementing Public Resources Code sections 35500 et seq. and 35650.
P
rogram: California Ocean Protection Council
PROJECT DESCRIPTION
Scope of Work
P
roject Schedule and Project Budget (“Work Program”) are described in Exhibit A and attached to this Grant Agreement and incorporated by reference. Grantee will fully perform all work necessary to complete the Project as identified in the Work Program. A Work Plan describing the project at a more detailed scale may be developed by the Grantee and Project Manager as necessary to ensure proper completion of grant deliverables.
P
roject Budget Details
T
he Grantee is permitted to adjust any of the ranges in the Project Budget, other than administrative and indirect costs, upwards or downwards for a total of 10% of the amount of the Grant, so long as the sum of the whole Project Budget does not exceed the approved amount of funding for the Work Program. Grantee will provide notice of any such adjustment to the State explaining how it plans to account for and manage the adjustment. However, if Grantee seeks to adjust the allocations within the Budget ranges upwards or downwards more than 10%, create or amend the ranges, or to delete ranges entirely, a request must be submitted in writing to the Project Manager. The Project Manager, along with the Project Manager’s supervisor, will consider whether to approve the Grantee’s request for new allocations and ranges. Upon approval of such a request by the Council staff, the new Budget ranges and allocations will become self - executing and will automatically be part of the Agreement and binding on Grantee, and incorporated into the Project Budget in Exhibit A.
TERMS AND CONDITIONS OF GRANT
S
pecial Provisions
1. R
ecipients of Grant Funds shall post signs acknowledging the source of the Funds pursuant to the Grant Guidelines, Application and requirements described in Appendix E. Size, location and number of signs shall be determined by the State. Required signage must be in place before Grant Funds for construction will be released.
2. T
he California Natural Resources Agency and California Ocean Protection Council (OPC or State) shall have the right to republish any material generated by this grant.
3. U
pon completion of detailed Project design, plans and specifications, Grantee shall provide to the State for r
eview and approval a revised detailed Project Budget, Project Scope and detailed site plan. If Project
OPC Grant Agreement No. P01-4-06
includes habitat Restoration or landscaping, Grantee shall provide a planting palette demonstrating how native, low-water, drought-resistant vegetation will be used in the Project. Approval by the State of such plans and specifications, or any other approvals provided for in this Agreement, shall be for scope and quality of work and shall not relieve Grantee of the obligation to construct and maintain the facilities, or carry out any other obligations required by this Agreement, in accordance with applicable law or any other standards ordinarily applied to such work or activity.
4. T
he Grantee may be required to record Deed Restrictions, incorporating by reference this Grant Agreement and giving public notice that the Grantee received Funds under this Agreement in order t o a
ssist Grantee in developing the real property and that, in consideration for the receipt of the Grant Funds, t
he Grantee has agreed to the terms of this Agreement.
G
eneral Provisions
A. De
finitions
1. The
term "Act" means Proposition 1: The Water Quality, Supply, and Infrastructure Improvement Act of 2014.
2. The
term “Acquisition” means obtaining a fee interest or any other interest, including Easement, leases, and Development rights.
3. The
term “Agreement” means this Grant Agreement.
4. The
term “Application” means the individual application form, its required attachments for grants pursuant to the enabling legislation and/or program and any applicable materials supplied by Applicant to the Ocean Protection Council or Natural Resources Agency prior to award.
5. The t
erm “Application Guidelines” means the Ocean Protection Council’s Proposition 1 Grant G
uidelines and Application.
6. The t
erm “Authorization” means the Ocean Protection Council adopted resolution included in the staff recommendation attached as Exhibit B. This agreement is executed under that authorization.
7. The
term “Development” means improvement, rehabilitation, Restoration, Enhancement, preservation, protection and interpretation or other similar activities.
8. The
term “Executive Director” means the Executive Director of the Ocean Protection Council, who is also the Deputy Secretary for Ocean and Coastal Policy.
9. The t
erm “Fair Market Value” means the value placed upon the property as supported by an appraisal that has been reviewed and approved by the California Department of General Services (DGS).
10. The t
erm “Grant” or “Grant Funds” means the money provided by the State to the Grantee in this Agreement.
11. The
term “Grant Agreement” means a contractual arrangement between the State and Grantee specifying the payment of Funds by the State for the performance of specific Project objectives within a specific Project Performance Period by the Grantee.
12. The
term "Grantee" means an Applicant who has a signed agreement for Grant Funds.
OPC Grant Agreement No. P01-4-06
13. The term “Interpretation” means visitor-serving amenities that communicate the significance and value of natural, historical and cultural resources in a manner that increases the understanding and enjoyment of these resources, or other similar activities.
14. The
term “Nonprofit Organization” means any nonprofit corporation qualified to do business in California, and qualified under section 501(c)(3) of the Internal Revenue Code.
15. The
term “Other Sources of Funds” means cash or In-Kind contributions that are required or used to c
omplete the Project beyond the Grant Funds provided by this Agreement.
16. The t
erm "Project" means the activity described in the Work Program to be accomplished with Grant Funds.
17. The
term “Project Budget” means the State approved cost estimate included as Exhibit A to this Agreement.
18. The t
erm “Project Manager” means the representative of the State given authorization by the Ocean Protection Council Executive Director to administer and provide oversight of the Grant.
19. The t
erm “Public Agency” means any State of California department or agency, a county, city, or public district or public agency formed under California law.
20. The
term “Request for Disbursement” means the form that will be submitted requesting payment.
21. The t
erm " State" means the Secretary for Natural Resources or his/her representatives, or other political subdivision of the State.
22. The
term “Work Plan” means the description of the tasks and related work to be accomplished by the Project
23. The t
erm “Work Program” means the State -approved Work Plan, Project Schedule, and Project Budget, as described in Exhibit A.
B. P
roject Execution
1. S
ubject to the availability of Funds in the Act, the State hereby grants to the Grantee a sum of money (Grant Funds) not to exceed the amount stated on the signature page in consideration of and on condition that the sum be expended in carrying out the purposes as set forth in the description of Project in this Agreement and its attachments and under the Terms and Conditions set forth in this Agreement.
2. Gr
antee shall furnish any and all additional Funds that may be necessary to complete the Project.
3. G
rantee shall complete the Project in accordance with the Project Performance Period set forth on the signature page, unless an extension has been formally granted by the State and under the Terms and Conditions of this Agreement. Extensions may be requested in advance and will be considered by State, at its sole discretion.
4. T
o the extent it is relevant, Grantee shall at all times ensure that Project complies with the California E
nvironmental Quality Act (CEQA) (Public Resources Code, Division 13, commencing with sectio n 21000,
et. seq., Cal Code Regs tit. 14, section 15000 et. seq.) and all other environmental laws, including but not limited to obtaining all necessary permits. Grant Funds will not be disbursed before t
he close of the period for legal challenge under CEQA.
OPC Grant Agreement No. P01-4-06
Grant Funds for Planning and document preparation may be available sooner if included in the grant Project Scope (Exhibit A) and approved by the State.
C
hanges to the scope resulting from CEQA compliance are permitted provided the State determines that the Project continues to meet all objectives of the Grant Program and is consistent with the intent cited in the original Application.
If a G
rantee's Project is disapproved on grounds related to the Natural Resource Agency's CEQA determination, the Grantee shall have the option of either: (1) reimbursing the Natural Resources Agency for all State-reimbursed preliminary costs (e.g., Planning, design, etc.), or (2) relinquishing any Planning/design documents, including all copies, reproductions, and variations resulting from said Funding, without a license to use or otherwise retain in any form.
5. P
rojects must comply with Labor Code Section 1771.8 regarding the payment of prevailing wages and the labor compliance program as outlined in the Labor Code Section 1771.5 (b).
6. Grantee certifies that the Project does and will continue to comply with all current laws a nd r
egulations which apply to the P roject, including, but not limited to, legal requirements for construction contracts, building codes, environmental laws, health and safety codes, and disable d a
ccess laws. Grantee certifies that, prior to commencement of construction; all applicable perm its and licenses (e.g., state contractor’s license) will have been obtained.
7. A
dditionally, the Grantee shall assure that any entity with whom it contracts or engages in work complies with all current laws and regulations as described in section B(4)(6).
8. G
rantee shall provide access to the State upon 24 hours -notice to determine if Project work is in accordance with the approved Project Scope, including a final inspection upon Project completion.
9. P
rior to the commencement of any work, Grantee agrees to submit in writing to the State for prior app
roval any deviation from the original Project Scope per Exhibit A and the Application. Changes in Project Scope must continue to meet the need cited in the original application or they will not b e app
roved. Any modification or alteration in the Project as set forth in the Application on file with t he S
tate must be submitted to the State for approval. Any modification or alteration in the Project must also comply with all current laws and regulations, including but not limited to CEQA.
10. G
rantee shall provide status reports of the work at the request of the State, and no less frequently than ev
ery quarter.
11. G
rantee shall provide for public access and/or educational features where feasible.
12. G
rantee must have (1) fee title, (2) leasehold, or (3) other interest to Project lands and demonstrate to the satisfaction of the State that the proposed Project will provide public benefits that are commensurate with the type and duration of the interest in land. Any Acquisition of Project lands by Grantee following award shall not involve eminent domain proceedings or threat of eminent domain proceedings.
13. G
rantee shall promptly provide photographs of the site during and after implementation of Project at the r
equest of the State.
C. P
roject Costs
1. A
ny Grant Funds provided to Grantee under this Agreement will be disbursed for eligible costs, on a r
eimbursement basis, as follows, but shall not exceed in any event the amount set forth on th e s
ignature page of this Agreement:
OPC Grant Agreement No. P01-4-06
a. Up to ten percent (10%) of the reimbursement amount will be held back and issued as a final payment upon completion of the Project.
b. R
emaining Grant Funds shall be paid up to the total amount of the Grant Funds or the actual Project cost, whichever is less, upon completion of the Project, receipt of a detailed summary of Project costs from the Grantee found to be satisfactory by the State, and the satisfactory completion of
a site inspection by the State.
2. P
ayment Documentation:
a. A
ll payment requests must be submitted using a completed Request for Disbursement Form. This form must be accompanied by an itemized list of all expenditures that clearly documents the check numbers, dates, recipients, line-item description as described in the Project Budget approved by the State and amounts. Each payment request must also include proof of payment such as receipts, paid invoices, canceled checks or other forms of documentation demonstrating payment has been made. Additionally, the Grantee is required to submit a supporting progress report summarizing the w
ork that was completed during the invoice period and the current status of the work for which disbursement is sought, including work by any subgrantee, and comparing it to the status required by the Work Program. All requests shall be submitted quarterly. b. A
ny payment request that is submitted without the required itemization and documentation will not be authorized. If the payment request package is incomplete, inadequate or inaccurate, the State will inform the Grantee and hold the payment request until all required information is received or corrected. Any penalties imposed on the Grantee by a contractor, or other consequence, because of delays in payment will be paid by the Grantee and is not reimbursable under this Agreement. c
. N
otwithstanding the foregoing, the Executive Director may request and the Grantee shall provide receipts or other source documents for any direct expense or cost as described in the ledger, as and when necessary to resolve any substantial issue concerning reimbursement. d. For
instances in which travel reimbursement is an approved cost in the grant , the State will reimburse the Grantee for expenses necessary to the project when documented by appropriate receipts. The State will reimburse travel and related expenses at actual costs not to exceed the rates provided in Title 2, Division 1, Chapter 3, Subchapter 1, Article 2 of the California Code of Regulations (“CCR”), except that reimbursement may be in excess of these rates upon documentation that these rates are not reasonably available to the Grantee. Reimbursement for the cost of operating a private vehicle shall not, under any circumstance, exceed the current rate specified by the State of California for unrepresented state employees as of the date the cost is incurred. The State will reimburse the Grantee for other necessary expenses if those expenses are reasonable in nature and amount taking into account the nature of the project, its location, and other relevant factors.
3. G
rant Funds in this award have a limited period in which they must be expended. Grantee expenditures Funded by the State must occur within the time frame of the Project Performance Period as indicated in t
his Agreement.
4. The S
tate reserves the right to request reimbursement of any Funds spent on the Project, even Funds deemed eligible costs, if the Project is not completed in accordance with the Grant Agreement and the guidelines.
5. The
Grantee is permitted to adjust any of the ranges in the Project Budget, other than administrative and
indirect costs, upwards or downwards for a total of 10% of the amount of the Grant, so long as the sum of the whole Project Budget does not exceed the approved amount of funding for the Work Program. Grantee will provide notice of any such adjustment to the State explaining how it plans to account for and manage the adjustment. However, if Grantee seeks to adjust the allocations within the
OPC Grant Agreement No. P01-4-06
Budget ranges upwards or downwards more than 10%, create or amend the ranges, or to delete ranges entirely, a request must be submitted in writing to the Project Manager. The Project Manager, along with the Project Manager’s supervisor, will consider whether to approve the Grantee’s request for new allocations and ranges. Upon approval of such a request by the Council staff, the new Budget ranges and allocations will become self-executing and will automatically be part of the Agreement and binding on Grantee, and incorporated into the Project Budget in Exhibit A.
D. P
roject Administration
1. Gr
antee shall promptly provide Project reports and/or photographs upon request by the State. In any event Grantee shall provide the State a report showing total final Project expenditures with the final payment request and required closing documents.
2. Gr
antee shall make property and facilities acquired or developed pursuant to this Agreement available f
or inspection upon request by the State.
3. G
rantee shall use any income earned by the Grantee from use of the Project to further Project purposes, or, if approved by the State, for related purposes within the jurisdiction.
4. G
rantee shall submit all documentation for Project completion, including a notice of completion as applicable and final reimbursement within ninety (90) days of Project completion.
5. Fi
nal payment is contingent upon State verification that Project is consistent with Project Scope as described in Exhibit A, together with any State approved amendments.
6. Thi
s Agreement may be amended by mutual agreement in writing between Grantee and State. An y r
equest by the Grantee for amendments must be in writing stating the amendment request and reason for the request. The Grantee shall make requests in a timely manner and in no event less than sixty (60) days before the effective date of the proposed amendment.
7. G
rantee must report to the State all sources of other Funds for the Project.
E. P
roject Termination
1. T
he State reserves the right to terminate a Grant Agreement for any reason at any time. There ar e no v
ested rights or entitlements to Funding that a G rantee can or should rely upon, and once a not
ice of termination is provided to the Applicant, only authorized and eligible work prior to that notification of termination will be paid by the State.
2. Prior to the completion of Project construction, either party may terminate this Agreement by providing the other party with thirty (30) days’ written notice of such termination. The State may also terminate this Grant Agreement for any reason at any time if it learns of or otherwise discovers that there is a violation of any State or federal law or policy by Grantee which affects performance of this or any other Grant Agreement or contract entered into with the State.
3. I
f the State terminates without cause the Agreement prior to the end of the Project Performanc e P
eriod, the Grantee shall take all reasonable measures to prevent further costs to the State under this Agreement. The State shall be responsible for any reasonable and non- cancelable obligations incurred by the Grantee in the performance of the Agreement prior to the date of the notice to terminate, but only up to the undisbursed balance of Funding authorized in this Agreement.
4. I
f the Grantee fails to complete the Project in accordance with this Agreement, or fails to fulfill any other obligations of this Agreement prior to the termination date, the Grantee shall be liable for immediate repayment to the State of all amounts disbursed by the State under this Agreement, plus accrue d i
nterest and any further costs related to the Project . The State may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed provided that t he
OPC Grant Agreement No. P01-4-06
State determines it is in the State’s best interest to do so. This paragraph shall not be deemed to limit any other remedies available to the State for breach of this Agreement.
5. Fai
lure by the Grantee to comply with the terms of this Agreement or any other Agreement under the Act may be cause for suspension of all obligations of the State hereunder.
6. Fai
lure of the Grantee to comply with the terms of this Agreement shall not be cause for suspendin g al
l obligations of the State hereunder if, in the judgment of the State, such failure was due to no fault of the Grantee. At the discretion of the State , any amount required to settle at minimum cost any irrevocable obligations properly incurred shall be eligible for reimbursement under this Agreement.
7. B
ecause the benefit to be derived by the State , from the full compliance by the Grantee with the t
erms of this Agreement, is the pr eservation, Enhancement or establishment of community green areas and spaces for the people of the State of California, and because such benefit exceeds to an immeasurable and unascertainable extent the amount of money furnished by the State by way of Grant Funds u
nder the provisions of this Agreement, the Grantee agrees that payment by the Grantee to the State of an amount equal to the amount of the Grant Funds disbursed under this Agreement by the S
tate would be inadequate compensation to the State for any breach by the Grantee of this Agreement.
The Grantee further agrees therefore, that the appropriate remedy in the event of a breach by the Grantee of this Agreement shall be the specific performance of this Agreement, unless otherwise agreed to by the State.
F. Ho
ld Harmless
1. G
rantee shall waive all claims and recourses against the State, including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this Agreement, except claims arising from the gross negligence of State, its officers, agents and employees.
2. G
rantee shall indemnify, hold harmless and defend State , its officers, agents and employees i n per
petuity against any and all claims, demands, damages, costs, expenses or liability costs arising out of the Project, including Development, construction, operation or maintenance of the property described in the Project description which claims, demands or causes of action arise under Government Code Section 895.2 or otherwise, including but not limited to items to which the Grantee has certified, except for liability arising out of the gross negligence of State , its officers, agents or employees. Grantee acknowledges that it is solely responsible for compliance with items to which it has certified.
3. G
rantee and State agree that in the event of judgment entered against the State and Grantee because o
f the gross negligence of the State and Grantee, their officers, agents or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment.
G. Fi
nancial Records
1. G
rantee shall maintain satisfactory financial accounts, documents and records for the Project and to make them available to the State for auditing at reasonable times. Grantee shall also retain suc h f
inancial accounts, documents and records for three (3) years after final payment and one (1) year following an audit.
2. G
rantee agrees that during regular office hours, the State and its duly authorized representatives shall have the right to inspect and make copies of any books, records or reports of the Grantee pertaining to this Agreement or matters related thereto. Grantee shall maintain and make available for inspection by the State accurate records of all of its costs, disbursements and receipts with respect to its activities under this Agreement.
OPC Grant Agreement No. P01-4-06
3. Grantee shall use applicable Generally Accepted Accounting Principles, unless otherwise agreed to by the State.
4. If
Grantee stated in the Application for funding and/or Work Plan that other sources of funding would be used to complete the Project, the Grantee shall establish internal systems to track expenditure of matching or in-kind funds on a regular basis and will make the d ocumentation available to the State upon request.
H. W
ork Product
1. W
here relevant, the Grantee agrees that all data, plans, drawings, specifications, surveys, studies, and other written or graphic work produced in the performance of this Agreement, herein referred to as “materials” are subject to the rights of the State as set forth in this section. The State shall have the right to reproduce, publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so.
2. G
rantee agrees that the grantee shall use the materials developed with grant funds under this agreement only for the purpose for which the grant funds were requested and no other use of the materials shall be permitted except by written permission.
3. G
rantee must certify the materials developed with grant funds under this agreement shall remain available for public review. This Agreement shall not prevent the transfer of the materials from th e G
rantee to a Public Agency, if the successor Public Agency assumes the obligations imposed by this Agreement.
4. I
f the use of the materials is changed to a use that is not permitted by the Agreement, or if the materials are sold or otherwise disposed of, at the State’s sole discretion, an amount equal to (1) the amount of the Grant, or (2) the proceeds from the sale or other disposition, whichever is greater, may b e r
eimbursed to the State.
I. Us
e of Facilities
1. T
he real property (including any portion of it or any interest in it) may not be sold or transferr ed w
ithout the written approval of the State of California, acting through the Natural Resources Agency, or its successor, provided that such approval shall not be unreasonably withheld as long as t he pur
poses for which the Grant was awarded are maintained.
2. G
rantee shall maintain, operate and use the Project in fulfillment of the purpose funded pursuant to this Grant for a minimum of 20 years, consistent with the Land Tenure/Site Control requirements included in the Application Guidelines. The Grantee, or the Grantee’s successor in interest in t he pr
operty, may assign without novation the responsibility to maintain and operate the property i n ac
cordance with this requirement only with the written approval of the State. Grantee may be excused from its obligations for operation and maintenance of the Project site only upon the written approval of the State for good cause. “Good cause” includes, but is not limited to, natural disasters that destroy the Project improvements and render the Project obsolete or impracticable to rebuild.
3. G
rantee shall use the property for the purposes for which the Grant was made and shall make n o ot
her use or sale or other disposition of the property. This Agreement shall not prevent the transfer of the pr operty from the Grantee to a Public Agency, if the successor Public Agency assumes the obligations imposed by this Agreement.
OPC Grant Agreement No. P01-4-06
4. If the use of the property is changed to a use that is not permitted by the Agreement, or if th e pr
operty is sold or otherwise disposed of, at the State ’s sole discretion, an amount equal to (1) th e am
ount of the Grant (2) the Fair Market Value of the real property, or (3) the proceeds from the sal e or
other disposition, whichever is greater, may be reimbursed to the State. If the property sold or otherwise disposed of is less than the entire interest in the property Funded in the Grant, an amount equal to either the proceeds from the sale or other disposition of the interest or the Fair Market Value of the interest sold or otherwise disposed of, whichever is greater, shall be reimbursed to th e S
tate.
5. T
he Grantee shall not use or allow the use of any portion of the real property for mitigation without the written permission of the State.
6. T
he Grantee shall not use or allow the use of any portion of the real property as security for any debt.
J. No
ndiscrimination
1. The G
rantee shall not discriminate against any person on the basis of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave in the use of any property or facility acquired or developed pursuant to this Agreement.
2. The G
rantee shall not discriminate against any person on the basis of residence except to the extent that reasonable difference in admission or other fees may be maintained on the basis of residence and pursuant to law.
3. The c
ompleted Project and all related facilities shall be open to members of the public generally, except as noted under the special provisions of this Agreement or under provisions of the Act.
K. A
pplication Incorporation
The G
rant Guidelines and the Application and any subsequent changes or additions to the Application approved in writing by the State are hereby incorporated by reference into this Agreement as though set forth in full in this Agreement.
L. S
everability
I
f any provision of this Agreement or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application, and to this end the provisions of this Agreement are severable.
M. W
aiver
N
o term or provision hereof will be considered waived by either party, and no breach excused by either party, unless such waiver or consent is in writing and signed on behalf of the party against whom the waiver is asserted. No consent by either party to, or waiver of, a breach by either party, whether expressed or implied, will constitute consent to, waiver of or excuse of any other, different or subsequent breach by either party.
N. A
ssignment
OPC Grant Agreement No. P01-4-06
Except as expressly provided otherwise, this Agreement is not assignable by the Grantee either in whole or in part.
O. Dis
putes
I
f the Grantee believes that there is a dispute or grievance between Grantee and the State arising out of or relating to this Agreement, the Grantee shall first discuss and attempt to resolve the issue informally with the Project Manager. If the issue cannot be resolved at this level, the Grantee shall follow the following procedures:
1. I
f the issue cannot be resolved informally with the Project Manager , the Grantee shall submit, i n w
riting, a grievance report together with any evidence to the Deputy Director of the OPC. The g
rievance report must State the issues in the dispute, the legal authority, or other basis for t he G
rantee’s position and the remedy sought. Within ten (10) working days of receipt of the written grievance report from the Grantee , the Deputy Director shall make a determination on the issue(s) and shall respond in writing to the Grantee indicating the decision and reasons therefore. Shoul d t
he Grantee disagree with the Deputy Director’s decision, the Grantee may appeal to Executive Di
rector of the OPC, who is also the Deputy Secretary for Ocean and Coastal Policy for the Natural Resources Agency.
2. T
he Grantee must submit a letter of appeal to the Executive Director explaining why the Deputy Director’s decision is unacceptable. The letter must include, as an attachment, copies of t he G
rantee’s original grievance report, evidence originally submitted, and response from the Deputy Director. The Grantee’s letter of appeal must be submitted within ten (10) working days of the receipt of t he Deputy Director’s written decision. The Executive Director or designee shall, within twenty (20) working days of receipt of Grantee’s letter of appeal, review the issues raised and shall render a written decision to the Grantee. The decision of the Executive Director or designee shall be final.
P. A
udit Requirements
P
rojects are subject to audit by the State annually and for three (3) years following the final payment of Grant Funds. The audit shall include all books, papers, accounts, documents, or other records of t he G
rantee, as they relate to the Project for which the Grant Funds were granted.
Q. E
xecutive Director’s Designee
The E
xecutive Director shall designate an Ocean Protection Council Project Manager who shall have the authority to act on behalf of the Executive Director with respect to this Agreement. The Executive Director shall notify the Grantee of the designation in writing.
R. I
nsurance
Thr
oughout the term of this agreement, for the life of any asset funded by the grant monies awarded pursuant to this agreement, or for any period of project implementation after the termination date of this agreement, the Grantee shall maintain self-insurance, as specified in this section, against claims for injuries to persons or damage to property that may arise from or in connection with any activities by the Grantee or its agents, representatives, employees, volunteers, or contractors associated with the project undertaken pursuant to this Agreement.
I
f the Grantee provides funds to any contractor to accomplish any of the work of this Agreement or provides funds to any subgrantee to carry out a project under this Agreement, the Grantee shall first enter into an agreement with each subgrantee or contractor requiring it to provide and maintain liability and property -
OPC Grant Agreement No. P01-4-06
damage insurance, as specified in this section, against claims for injuries to persons or damage to property that may arise from or in connection with any activities by the subgrantee or contractor, or its agents, representatives, employees, or volunteers, associated with the project undertaken pursuant to this Agreement. As an alternative, with the written approval of the Executive Director, the subgrantee or contractor may satisfy the coverage required by this section in whole or in part through: (a) its participation in a “risk management” plan, self-insurance program or insurance pooling arrangement, or any combination of these, if consistent with the coverage required by this section. Required insurance shall be maintained from the commencement date through the completion date of the work undertaken by the subgrantee or contractor under the approved Work Program.
1. M inimum Scope of Insurance. Coverage shall be at least as broad as:
a. Insurance Services Office (“ISO”) Commercial General Liability coverage (occurrence Form CG 0001) or ISO Comprehensive General Liability form (1973) or comparable with Broad Form Comprehensiv e
G
eneral Liability endorsement.
b. A
utomobile Liability coverage - ISO Form Number CA 0001, Code 1 (any auto). c. W
orkers’ Compensation insurance as required by the Labor Code of the State of California.
2. M inimum Limits of Insurance. Grantee shall maintain coverage limits no less than:
a. General Liability:
(Including operations,
products and completed
operations, as
applicable)
$1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability
Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply
separately to the act ivities under this agreement or the general aggregate limit shall be twice the required
occurrence limit.
b. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Use of Watercraft. If the subgrantee or contractor is to engage in project work involving the use of watercraft, it shall provide and maintain insurance covering injury to person or property in connection with t
he use of watercraft, which may include, as appropriate, an endorsement to a Commercial General Liability policy covering non-owned watercraft liability or Protection and Indemnity Insurance or Jones Act coverage.
Coverage shall be in a reasonable amount in light of the nature of the activity and shall be documented and approved by the Executive Director.
4. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Executive Director.
5. Required Provisions. Each insurance policy required by this section shall be endorsed to state that coverage shall not be canceled by either party, except after thirty days’ prior written notice by certified mail, return receipt requested, has been given to the Ocean Protection Council. The general liability and aut
omobile liability policies are to contain, or to be endorsed to contain, the following provisions:
a. The State of California, its officers, agents and employees are to be covered as insured wit h r
espect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the G
rantee; and with respect to liability arising out of work or operations performed by or on behalf of the Grantee including materials, parts or equipment furnished in connection with such work or operations. b. For any claims related to this agreement, the Grantee’s insurance coverage shall be primary insurance with respect to the State of California, its officers, agents and employees.
OPC Grant Agreement No. P01-4-06
c. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code.
6. Acceptability of Insurers. Insurance shall be placed with insurers admitted to transact business in the State of California and having a current Best’s rating of “B+:VII” or better or, in the alternative, acceptable to the Ocean Protection Council and approved in writing by the Executive Director.
7. Verification of Coverage. The Grantee shall furnish the Executive Director with original certificates and amendatory endorsements effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Executive Director before work commences. The Ocean Protection Council reserves the right to require complete, certified copies of all required insurance policies, includin g
endo
rsements affecting the coverage, at any time.
5. Premiums and Assessments. The Ocean Protection Council is not responsible for premiums and assessments on any insurance policy.
6. Indemnity. The grantee shall agree to indemnify and hold harmless the state of California, acting by and through the Ocean Protection Council, and any employee or agent thereof harmless from any liability, loss or damage that may be suffered as a result of claims, demands, costs or judgments against them arising out
of the activities to be carried out pursuant to the obligations of this Agreement, including, but not limited to, the use by Grantee of results obtained from the activities perform ed under this agreement; provided, however, that any such liability, loss or damage resulting from this agreement was not caused by the gross negligence or malfeasance of the OPC, its employees or agents.
P01-4-06
City of National City
Paradise Creek Wetland Expansion and Park Site
State of California Natural Resources Agency
Ocean Protection Council
Exhibit A
Grantee Name: City of National City
Project Title: Paradise Creek Wetland Expansion and Park Site Agreement Number P01-4-06
Term of Agreement: Upon Approval through December 31, 2024 Project Summary:
The project consists of demolition of a portion of the existing industrial land use, wetland expansion, creation of a park/educational picnic area, installation of five trash control devices, interpretive signage, and sidewalk improvements. The trees and vegetation for the park area and expanded wetland will reduce greenhouse gas emissions by sequestering and storing carbon which will improve air quality. The project will have a local and regional watershed impact through creating native wetland habitat for local wildlife in an Environmentally Sensitive Area within the City. Overland flow will be conveyed through the green space to help reduce runoff pollution into Paradise Creek. The project drains to Paradise Marsh (Sweetwater Marsh Unit) which is part of the San Diego Bay National Wildlife Refuge. The project team consists of the City of National City (City) with subcontractor support.
Objective:
This project will implement California Ocean Protection Council (OPC) strategic targets in Goals 1, 2, and 3 from OPC’s Strategic Plan. The purpose of the project is to enhance coastal wetlands, which aligns with Target 1.1.7. The wetland expansion allows for connectivity to the salt marsh habitat to improve native wildlife biodiversity, which is suitable for endangered, threatened, migratory, and native species, as well as minimize the localized flooding on W 18 th
Street from tidal influences in the creek, which aligns with Target 1.1.2. Coastal salt marsh at Paradise Marsh supports species such as the State Endangered Belding’s savannah sparrow, clapper rail, and the federal endangered plant salt marsh bird’s beak. The educational program that will be developed under Task 4 will benefit underserved communities, specifically residents of National City and students and Kimball Elementary, which are adjacent to the project area and aligns with Target 2.2.2. The project will create green spaces and provide workforce training and local job opportunities in the Disadvantaged Community (DAC). Educational signage will encourage creek stewardship among the residents of the disadvantaged community. The interpretative signage at the project will include environmental messaging in both English and Spanish.
P01-4-06
City of National City
Paradise Creek Wetland Expansion and Park Site
A
t the project site, the wetland expansion will filter pollutants, including phosphorus, from overland runoff that discharge directly into Paradise Creek through natural processes. Trash will be captured and prevented from entering the newly restored creek, which aligns with Target
3.4.2. The wetland habitat quality will improve to protect the ecological value of Paradise Creek and the San Diego Bay National Wildlife Refuge.
Project Tasks and Deliverables:
Task 1: Project Management
Cit
y of National City will coordinate with the OPC Project Manager to keep the agency informed about the status of the project. Grantee will be responsible for managing the budget and schedule, submitting requests for disbursement, and other project management activities. This task also includes meetings and coordination with other stakeholders.
Deliverable: Quarterly invoice and progress status reports.
Task 2: Planning/Design/Engineering/Environmental
P
erform engineering, analysis and reporting to support the final design for the demo of the welding shop, expanded wetland, and educational/picnic area. A subcontractor will develop design recommendations based on the collected field data and input from stakeholders during the community workshops. A subcontractor will create and review the final design configuration of the expanded wetland and update the construction sequence recommendations, as necessary.
D
evelopment of a Technical Advisory Committee (TAC) for the program with local connections and partners, including but not limited to San Diego Climate Collaborative and permitting agencies.
P
repare permit applications for the resource agencies listed below. The City has a Local Coastal Program, and this will expedite the review of the Coastal Development Permit.
Deliverable: • Technical Advisory Committee meeting minutes and memorandum. • 30%, 60%, and 100% Design (Plans, Outline Specifications and Cost Estimate).
• Agency coordination to procure permits, Technical Studies, CEQA coordination.
• 404 United States Army Corps of Engineers (USACE) Nationwide P
ermit.
• Federal Emergency Management Agency (FEMA) Application. • California Environmental Quality Act (CEQA) document* • Regional Board 401 Water Quality Certification Coastal Development Permit / Letter of Consistency.
• 1602 Permit California Department of Fish and Wildlife (CDFW) Streambed Alteration.
P01-4-06
City of National City
Paradise Creek Wetland Expansion and Park Site
• Coordinate with the California Conservation Corp (CCC) for invasive species and trash removal.
• Prepare local and regional permit applications (Grading, Building, Electrical, Mechanical, Landscaping, Demo).
• Stormwater Pollution Prevention Plan.
*The project team will inquire about the project’s eligibility to apply for the California Department of Fish and Wildlife (CDFW) Statutory Exemption for Restoration Projects (SERP) process. If approved pursuant to SERP, the pr
oject is exempt from CEQA and CDFW issues a SERP concurrence. SERP ex
empt projects remain subject to all other applicable federal, state, and local laws and regulations, including obtaining listed permits and technical studies/plans.
Task 3: Construction and Implementation
O
nce the permitting and design phase is complete the City will begin construction. The Project consists of demolition of a portion of the existing industrial land use which will include hardscape on the east side of the project area for the welding shop. The California Conservation Corps will remove invasive species and trash from the project area. Soil with possible detection of contaminants will be removed and disposed of properly. The existing industrial land use on the east side of the project area and a portion of the existing access road will be converted into a wetland. A safety fence will be installed.
Some walls of the existing building will be demolished. Once demolition is complete, the remaining structure will be converted into a covered educational and picnic area. Four interpretative signs will be installed in the educational and picnic area. The trees and vegetation will be planted in the park area, and the educational area will be equipped with lighting. A Reason to Survive (ARTS) will design a community-led piece in covered educational area.
Contingency may be used to cover increases in construction costs due to inflation. After the project is completed the final CRAM Monitoring Report will be prepared, which will include a summary of the data collected for pre-project and post-project CRAM data.
Deliverable: • Monthly status reports.
• Bi-monthly MS4 Permit required stormwater compliance inspections. • Final documents for bidding and selection of subcontractor(s). • Construction Notice to Proceed (NTP).
• Interpretative signage (4).
• Photographs during and after construction (demo, remediation, grading of site, wetland construction, and planting/stabilization). • As-builts for final design.
• Final CRAM Monitoring Report.
P01-4-06
City of National City
Paradise Creek Wetland Expansion and Park Site
Task 4: Education, Outreach, Monitoring, and Reporting
Two community workshops will be held to engage the community in the design process for the educational/picnic area and art installation. Develop watershed and aquatic health curriculum related to San Diego Bay for National City School District.
Deliverable: Documentation of activities (agendas, meeting minutes/notes, or in progress reports, photos, community decisions, and attendance logs) for:
• Community Workshop #1.
• Community Workshop #2
• Watershed Curriculum Program.
Proje
ct Timeline:
# Task Name 2022 2023 2024
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1 Project
Management
2 Planning/Design/
Engineering/
Environmental
3 Construction and
Implementation
4 Education and
Outreach
Note: The final completion date for the grant is December 31, 2024.
P01-4-06
City of National City
Paradise Creek Wetland Expansion and Park Site
B
udget:
Task 1* Task 2 Task 3 Task 4* Total
Subcontractor(s) $0 $243,664 $622,444 $0 $866,108
Contingency** $0 $0 $90,892 $0 $90,892
IDC (15%) $0 $0 $0 $0 $0
Task Total $0 $243,664 $713,336 $0 $957,000
Agreement Total: $957,000
Note:
*Only includes tasks associated with In-Kind match, and no reimbursement is required. **The design has not been completed for this project, and inflation has been unprecedented. There is some uncertainty for the bids for construction, and the contingency in Task 3 is intended to help cover the costs if the bids received for this project are greater than originally anticipated. Contingency for Task 3 will not be used if the bids fall within the cost estimate included in this grant agreement. However, if the contingency is not used under Task 3, it will be absorbed into other tasks, upon OPC approval.
A
greement Contacts:
Grantee: City of National City
Contact Name: Dennis Davies
Contact Number: (619) 887-1002
Contact Address: 1243 National City Blvd, National City, CA 91950 Contact Email: [email protected]
California Natural Resources Ocean Protection Council
Contact Name: Maria Rodriguez
Contact Number: N/A
Contact Address: 1416 Ninth Street, Ste. 1311
Sacramento, CA 95814
Contact Email: [email protected]
AGENDA REPORT
Department: City Attorney's Office
Prepared by: Jennifer K. Gilman, Assistant City Attorney, City Attorney’s Office Meeting Date: Tuesday, August 2, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
Devaney Pate Morris & Cameron, LLP 1st Amendment to the Agreement
RECOMMENDATION:
Adopt Resolution amending the Agreement between National City and Devaney Pate Morris & Cameron, and authorize the City Manager to execute the First Amended Agreement.
BOARD/COMMISSION PRIOR ACTION:
N/A
EXPLANATION:
The City of National City and Devaney Pate Morris & Cameron entered into an A greement on May 3, 2021 to assist in representing the City in connection with the City’s land use and business matters regarding the San Diego Unified Port District for a not-to-exceed amount of $25,000.
Both parties desire to amend the Agreement in order to pay for an increased scope of services provided by Devaney Pate Morris & Cameron. The Agreement seeks an amendment increasing the original not-to-exceed amount by $25,000, for a total contract amount of $50,000. Every other term and provision of the May 3, 2021 Agreement will remain in full force and effect.
FINANCIAL STATEMENT:
001-409-000-213-0000 Professional Services
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Not Applicable
ENVIRONMENTAL REVIEW:
This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A - Agreement
Exhibit B – First Amendment to the Agreement
Exhibit C - Resolution
AGREEMENT FOR LEGAL SERVICES
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
DEV ANEY PATE MORRIS & CAMERON, LLP
THIS AGREEMENT FOR LEGAL SERVICES (the "Agreement") is made as of the 3rd day of May, 2021 between THE CITY OF NATIONAL CITY, a municipal corporation, (the "CITY") and DEVANEY PATE MORRIS & CAMERON, LLP, (the "FIRM"). This Agreement sets forth the parties' mutual understanding concerning legal services to be provided by the FIRM and the fee arrangement for said services.
Article 1. Retainer. The CITY hereby retains the FIRM to assist in representing the CITY in connection with the CITY's land use and business matters regarding the San Diego Unified Port District subject to this Agreement.
Article 2. Effective Date and Term. This Agreement shall be effective on May 3, 2021 and continue until written notice of cancellation. This Agreement may be terminated at any time by either party with sixty (60) days' written notice to the other. Notice of tennination by the FIRM shall be given to the City Attorney.
Article 3. Scope of Services. The CITY shall have the right in its sole discretion to determine the particular services to be performed by the FIRM under this Agreement. These services may include the following: (1) review, analysis and assessment of the San Diego Port Commission's Master Plan Update and the associated Enviromnental Impact Report subject to this Agreement, (2) strategy sessions with the City Attorney and CITY staff to develop legal strategies and implementation strategies to ensure that the CITY and its residents and businesses are properly protected from the impacts of the San Diego Port Commission activities, while at the same time equitably sharing in the benefits from the San Diego Port Commission activities (3) business advice concerning San Diego Port matters and ( 4) advice and counsel to the City Council, and communications with CITY staff as per the Proposal Letter attached as Exhibit A ("LEGAL SERVICES"). In addition, the City may increase the scope of work with the FIRM's agreement, and such additional work will be confirmed via a letter that shall bring such work within the scope of this agreement. It is expected that the FIRM will work with the City Attorney and CITY staff.
Article 4. Compensation. Compensation paid under this Agreement shall be as set forth in the Proposal Letter attached as Exhibit A.
A. The FIRM shall not use more than one attorney for the same specific task without the CITY'S approval. The FIRM may use the minimum number of attorneys for this engagement consistent with good professional practice after consulting with and obtaining approval by the CITY.
B. The FIRM agrees to document a plan and budget consistent with the scope of services described above in Article 3 to be agreed to by the City Attorney and the FIRM. The {Client Files/BJS/OOO/K/S0642089.DOCX}
National City and
Legal Services
2021 Agreement City of
Devaney Pate Monis & Cameron, LLP
CITY shall not be obligated to pay the FIRM amounts not discussed, budgeted, and agreed to before being incurred by the FIRM.
C. The CITY has appropriated or otherwise duly authorized the payment of an amount not to exceed $25,000.00 for LEGAL SERVICES and out-of-pocket disbursements pursuant to this Agreement. In no event shall the total fees plus out-of-pocket disbursements exceed this amount without written authorization of the CITY.
D. The FIRM shall keep the CITY advised monthly as to the level of attorney hours and client services perfonned under Article 1. The FIRM will not charge the CITY for travel time; however, the FIRM may charge for work perfonned for the CITY during any travel time.
E. The CITY further agrees to reimburse the FIRM, in accordance with the procedures set fmih in this Article, for telephone, fax, mail, messengers, federal express deliveries, document reproduction, client-requested clerical overtime, lodging, and similar out-of-pocket expenses charged by the FIRM as a standard practice to its clients generally, with the exception of travel and meals. In any billing for disbursements, the FIRM shall provide the CITY with a statement breaking down the amounts by category of expense. The following items shall not be reimbursed, unless the CITY has specifically agreed otherwise:
(1) Word Processing, clerical or secretarial charges, whether expressed as a dollar disbursement or time charge.
(2) Storage of open or closed files, rent, electricity, local telephone, postage, receipts or transmission of telecopier documents, or any other items traditionally associated with overhead.
(3) Photocopy charges in excess of $.15 (fifteen cents) per page. (4) Auto mileage rates in excess of the rate approved by the Internal Revenue Service for income tax purposes.
(5) Secretarial overtime. Where case requirements demand overtime, the CITY will consider reimbursement on a case-by-case basis. The CITY will not reimburse overtime incurred for the convenience of the FIRM'S failure to meet deadlines known in advance. or like items.
(6) Equipment, books, periodicals, research materials, Westlaw/Lexis (7) Express charges, overnight mail charges, messenger services or the like, without the CITY'S prior consent. The CITY expects these expenses to be incurred in emergency sihiations only. Where case necessity requires the use of these services, the CITY will consider reimbursement on a case-by-case basis.
(8) Travel and meals.
(9) Late payment charge or interest. Due to the nature of the CITY'S payment process, the CITY will not pay any late charges or interest charges to bills. Every effort will be made to pay bills promptly.
F. Bills from the FIRM should be submitted to Charles E. Bell, Jr., City Attorney, 1243 National City Boulevard, National City, CA 91950-4301. The individual time and {Client Files/BJS/OOO/K/S0642089.DOCX}
National City and
Legal Services
2021 Agreement City of
Devaney Pate Manis & Cameron, LLP
disbursement records customarily maintained by the FIRM for billing evaluation and review purposes shall be made available to the CITY in support of bills rendered by the FIRM.
G.The FIRM agrees to forward to the CITY a statement of account for each one month period of services under this Agreement, and the CITY agrees to compensate the FIRM on this basis. The FIRM will consult monthly with the CITY as to the number of attorney hours and client disbursements which have been incurred to date under this Agreement, and as to future expected levels of hours and disbursements.
approp1iate.
H. Billing Format. Each billing entry must be complete, discrete and (I) Complete.
(a) Each entry must name the person or persons involved. For instance, telephone calls must include the names of all participants. (b) The date the work was perfonned must be included.
( c) The hours should be billed in .10 hour increments. (d) The specific task performed should be described, and the related work product should be reference ("telephone call re: trial brief," "interview in preparation for deposition").
( e) The biller's professional capacity (partner, associate, paralegal, etc.) should be included.
(2) Discrete: Each task must be set out as a discrete billing entry; neither narrative nor block billing is acceptable.
(3) Appropriate.
(a) The CITY does not pay for clerical support, administrative costs, overhead costs, outside expenses or excessive expenses. For example, the CITY will not pay for secretarial time, word processing time, air conditioning, rental of equipment, including computers, meals served at meetings, postage, online research, or the overhead costs of sending or receiving faxes. Neither will the CITY pay for outside expenses such as messenger delivery fees, outside photocopying, videotaping of depositions, investigative services, outside computer litigation support services, or overnight mail.
(b) Due to the nature of the CITY'S payment process, the CITY will not pay any late charges. Every effort will be made to pay bills promptly.
I. Staffing. Every legal matter should have a primarily responsible attorney and a paralegal assigned. Ultimately, staffing is a CITY decision, and the CITY'S representative may review staffing to insure that it is optimal to achieve the goals of the engagement at the least cost.
( 1) Paralegals are to be used to the maximum extent possible to enhance efficiency and cost-effectiveness. All tasks typically considered associate work should be considered for assignment to a paralegal. Written authorization from the CITY must be had before associate hours billed exceed paralegal hours billed.
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(2) Once an attorney is given primary responsibility for an engagement, that person should continue on the legal matter until the matter is concluded or the attorney leaves the FIRM. The CITY will not pay the costs of bringing a new attorney up to speed. (3) If more than one attorney is going to perform the same task, prior approval from the CITY must be had. This includes document review.
Article 5. Independent Contractor. The FIRM shall perform services as an independent contractor. It is understood that this contract is for unique professional services.
Accordingly, the duties specified in this Agreement may not be assigned or delegated by the FIRM without prior written consent of the CITY. Retention of the FIRM is based on the particular professional expertise of the individuals rendering the services required in the Scope of Services.
Article 6. Confidentiality of Work. All work performed by the FIRM including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the FIRM pursuant to this Agreement is for the sole use of the CITY. All such work product shall be confidential and not released to any third party without the prior written consent of the CITY.
Article 7. Compliance with Controlling Law. The FIRM shall comply with all applicable laws, ordinances, regulations, and policies of the federal, state, and local governments as they pertain to this Agreement. In addition, the FIRM shall comply immediately with any and all directives issued by the CITY or its authorized representatives under auth01ity of any laws statutes, ordinances, rules, or regulations. The laws of the State of California shall govern and control the tenns and conditions of this Agreement.
Article 8. Acceptability of Work. The CITY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement and the amount of compensation due.
If the FIRM and the CITY cannot agree to the quality or acceptability of the work, the manner of performance, or the compensation payable to the FIRM in this Agreement, the CITY or the FIRM shall give to the other written notice. Within ten (10) business days, the FIRM and the CITY shall each prepare a report which supports their position and file the same with the other party. The CITY shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance or the compensation payable to the FIRM.
Article 9. Indemnification. The FIRM agrees to indemnify, defend, and hold the CITY and its agents, officers, employees, and volunteers harmless from and against all claims asserted or liability established for damages or injuries to any person or property, including injury to the FIRM'S employees, agents, or officers, which arise from or are connected with or caused or claimed to be caused by the acts or omissions of the FIRM and its agents, officers, or employees in performing the work or other obligations under this Agreement, and all expenses of investigating and defending against same; provided, however, that this indemnification and hold ha1mless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the CITY, its agents, officers, employees, or volunteers. {Client Files/BJS/OOO/K/S0642089.DOCX}
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Article 10. Insurance. The FIRM, at its sole cost and expense, shall purchase and maintain throughout the term of this Agreement, the following insurance policies:
A. Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per claim.
B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non-owned, and hired vehicles. The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided.
C. Commercial General Liability Insurance, with minimum limits of either $2,000,000 per occurrence and $4,000,000 aggregate, or $1,000,000 per occmTence and $2,000,000 aggregate with a $2,000,000 umbrella policy, covering all bodily injury and property damage arising out of its operations, work, or perfonnance under this Agreement. The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to the "location". The "location" should be noted with specificity on an endorsement that shall be incorporated into the policy.
D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements cove1ing all of FIRM'S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the CITY. Said endorsement shall be provided prior to commencement of work under this Agreement.
E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, officials, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY's Risk Manager, at the address listed in subsection G below, of cancellation or material change.
F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the FIRM shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement.
G. The Certificate Holder for all policies of insurance required by this Section shall be:
City of National City
c/o Risk Manager
1243 National City Boulevard
National City, CA 91950-4397
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H. Insurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder's alphabetic and financial size category rating of not less than A:VII according to the current Best's Key Rating Guide, or a company of equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non admitted "surplus lines" carriers, they must be included on the most recent List of Approved Surplus Line Insurers ("LASLI") and otherwise meet rating requirements.
I. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the FIRM does not keep all insurance policies required by this Article 10 in full force and effect at all times during the tenn of this Agreement, the CITY may treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein.
J. All deductibles and self-insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. CITY reserves the right to modify the insurance requirements of this Article 10, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
K. If the FIRM maintains broader coverage or higher limits ( or both) than the minimum limits shown above, the CITY shall be entitled to the broader coverage or higher limits ( or both) maintained by the FIRM. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
Article 11. Drug Free Work Place. The FIRM agrees to comply with the CITY'S Drug-Free Workplace requirements. Every person awarded a contract by the CITY for the provision of services shall certify to the CITY that it will provide a drug-free workplace. Any subcontract entered into by the FIRM pursuant to this Agreement shall contain this provision.
Article 12. Non-Discrimination Provisions. The FIRM shall not disc1iminate against any subcontractor, vendor, employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The FIRM will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual 01ientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The FIRM agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.
Article 13. Notification of Change in Form. The FIRM has the right to effect changes in form including but not limited to: the change in form from a partnership to a professional law corporation; the change in form of any partner or partners from an individual or individuals to a professional law corporation; the change in form of any corporate partner or partners to any individual partners. The CITY shall be promptly notified in writing of any change in form. {Client Files/BJS/OOO/K/S0642089.DOCX}
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Article 14. Notices. In all cases where written notice is to be given under this Agreement, service shall be deemed sufficient if said notice is deposited in the United States mail, postage paid. When so given, such notice shall be effective from the date of mailing of the notice.
Unless otherwise provided by notice in writing from the respective parties, notice to the Agency shall be addressed to:
cc:
and to:
City Attorney
City of National City
1243 National City Boulevard
National City, CA 91950-4397
Executive Assistant to the City Attorney
City of National City
1243 National City Boulevard
National City, CA 91950-4397
[email protected]
[email protected]
Notice to the FIRM shall be addressed to:
cc:
and to:
Barry J. Schultz
Devaney Pate Morris & Cameron, LLP
402 West Broadway, Ste. 1300
San Diego, CA 92101-3542
Sabrina Scialpi, Assistant to Barry J. Schultz
Devaney Pate Morris & Cameron, LLP
402 West Broadway, Ste. 1300
San Diego, CA 92101-3542
[email protected]
[email protected]
Nothing contained in this Agreement shall preclude or render inoperative service or such notice in the manner provided by law.
Article 15. Administrative Provisions.
A. Time of Essence. Time is of the essence for each provision of this Agreement.
B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument.
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C. Headings. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof.
D. California Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of California. The venue for any legal action arising under this Agreement shall be in either state or federal comt in the County of San Diego, State of California.
E. Integrated Agreement. This Agreement including attachments and exhibits contains all of the agreements of the parties and all prior negotiations and agreements are merged in this Agreement. This Agreement cannot be amended or modified except by written agreement, and mutually agreed upon by the CITY and the FIRM.
F. Severability. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render the other provisions unenforceable, invalid, or illegal.
G. Waiver. The failure of the CITY to enforce a particular condition or provision of this Agreement shall not constitute a waiver of that condition or provision or its enforceability.
H. Conflict of Interest. During the term of this Agreement, the FIRM shall not perfo1m services of any kind for any person or entity whose interests conflict in any way with those of the CITY. This prohibition shall not preclude the CITY from expressly agreeing to a waiver of a potential conflict of interest under certain circumstances.
I. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto.
J. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. To the extent any exhibits, schedules, or provisions thereof conflict or are inconsistent with the tenns and conditions contained in this Agreement, the terms and conditions of this Agreement shall control.
K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively pmticipated in the drafting, preparation and negotiation of this Agreement, and (iii) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto.
IN WITNESS WHEREOF, the pa1ties hereto have executed this Agreement on the date and year first above written.
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CITY OF NATIONAL CITY
By:�
Braauston,CityManer
APPROVED AS TO FORM:
By:
Charles E. Bell Jr.
City Attorney
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DEVANEY PATE MORRIS
CAMERON, LLP
(Corporatlo 111'0 corporate officers)
&
2021 Agreement City of
Devaney Pate Morris & Cameron, LLP
CITY OF NATIONAL CITY
By:
Brad Raulston, City Manager
APPROVED AS TO FORM:
By:
Charles E. Bell Jr.
City Attorney
( Cl icnt 1:ilcs/BJS/OOO/K/S064208l/. DOCX}
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DEVANEY PATE
CAMERON, LLP
(C o,pora/ io,
2021 Agreement
MORRIS &
City of
Devaney Pate Morris & Cameron, LLP
AMENDMENT TO THE AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
DEVANEY PATE MORRIS & CAMERON, LLP
THIS FrRST AMENDMENT TO THE AGREEMENT is entered into this day of July, 2022, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"), and Devaney Pate Morris & Cameron, (the "FIRM").
RECITALS
WHEREAS, the CITY and the FIRM entered into an Agreement on May 3, 2021 ("the Agreement"), wherein the FIRM agreed to provide advice and counsel the CITY on matters relating to: the San Diego Port Commission's Master Plan; San Diego Port Commission Activities; San Diego Port matters; and the National City Marina District Balanced Land Use Plan for a not to-exceed amount of $25,000.00; and
WHEREAS, the parties desire to amend the Agreement to cover the cost of providing the increase scope of services from the amount of $25,000.00 to the not-to-exceed amount by $25,000.00, for a total not-to-exceed amount of $50,000.00.
AGRE EMENT
NOW, THEREFORE, the parties hereto agree that:
1. The May 3, 2021 Agreement is hereby amended to cover the cost of the increased scope of services from original contract amount of $25,000.00 by a not to-exceed increased amount of $25,000.00, for a total not-to-exceed amount of $50,000.00.
2. The parties further agree that, with the foregoing exceptions, each and every other term and provision of the May 3, 2021 Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first above written.
CITY OF NATIONAL CITY
By: ________ _
Brad Raulston, City Manager
APPROVED AS TO FORM:
By: _________ _
Gabriela M. Torres
Deputy City Attorney
Amended Agreement
Devaney Pate Morris & Cameron,
LLP
By�
ary,
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Title: l?,,t,rwfA...
City of National City and
Devaney Pate Morris & Cameron, LLP
RESOLUTION NO. 2022 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, APPROVING THE FIRST AMENDMENT TO AN AGREEMENT
BETWEEN THE CITY OF NATIONAL CITY AND DEVANEY PATE MORRIS &
CAMERON, LLP FOR LEGAL SERVICES IN THE SPECIALIZED AREA OF LAND USE
AND BUSINESS MATTERS REGARDING THE SAN DIEGO UNIFIED PORT DISTRICT BY INCREASING THE NOT-TO-EXCEED AMOUNT BY $25,000 FOR A NEW TOTAL NOT-TO-EXCEED AMOUNT OF $50,000 TO COVER THE COST OF PROVIDING
INCREASE SCOPE OF SERVICES
WHEREAS, the Cit y of National City (“City”) engages outside legal support for specialized areas; and
WHEREAS, on May 3, 2021, the City executed an agreement with Devaney Pate Morris & Cameron LLP to assist in representing the City in connection with the City’s land use and business matters regarding the San Diego Unified Port District for a not -to- exceed amount of $25,000; and
WHEREAS, the City and Devaney Pate Morris & Cameron LLP desire to amend the A greement to cover the cost s of an increased of scope of services provided by Devaney Pate Morris & Cameron LLP; and
WHEREAS, the Agreement seeks an amendment increasing the original not-to- exceed amount by $25,000, for a new total not-to-exceed amount of $50,000; and
WHEREAS, every other term and provision of the May 3, 2021 Agreement will remain in full force and effect; and
WHEREAS, City staff recommends City Council approve the first amendment to an Agreement between the City of National City and Devaney Pate Morris & Cameron LLP by increasing the not-to-exceed amount by $25,000 for a new not-to-exceed amount of $50,000.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Approves the first amendment to the Agreement between the City of National City and Devaney Pate Morris & Cameron LLP for legal services in the specialized area of land use and business matters regarding the San Diego Unified Port District by increasing the not-to-exceed amount by $25,000 for a new total not-to-exceed amount of $50,000 to cover the cost of providing an increased scope of services.
Section 2: Authorizes the City Manager to execute the first amendment to the Agreement between the City of National City and Devaney Pate Morris & Cameron LLP for legal services in the specialized area of land use and business matters regarding the San Diego Unified Port District by increasing the not-to-exceed amount by $25,000 for a new total not -to-exceed amount of $50,00 0 to cover the cost of providing an increased scope of services.
Resolution No. 2022 –
Page Two
Section 3: The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolution.
PASSED and ADOPTED this 2nd day of August 2022.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Barry J. Schultz, Interim City Attorney
AGENDA REPORT
Department: Engineering
Prepared by: Luca Zappiello, Assistant Engineer – Civil, Engineering/Public Works Department
Meeting Date: Tuesday, August 2, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
Authorizing the Mayor to execute the State-Aid Master Agreement and the PSA No. Z44 with Caltrans for the Pedestrian Safety Enhancements Project to allow for reimbursement of up to $60,000 in HISP Grant Funds.
RECOMMENDATION:
Adopt a Resolution entitled, “Resolution of the City Council of the City of National City, California, authorizing the Mayor to 1) Execute the State-Aid Master Agreement; and 2) Execute Program Supplement Agreement (PSA) No. Z44 with the State of California Department of Transportation (Caltrans) for the Pedestrian Safety Enhancements Project to allow for reimbursement of up to $60,000 in Eligible Project Expenditures through the Highway Safety Improvement Program (HSIP); and 3) authorizing the establishment of an Engineerin g Grants Fund Appropriation of $60,000 and Corresponding Revenue Budget.”
BOARD/COMMISSION PRIOR ACTION:
N/A
EXPLANATION:
On March 30, 2021, the California Department of Transportation (Caltrans) awarded a $427,500 Highway Safety Improvement Program (HSIP) grant to the City of National City (City) for the Pedestrian Safety Enhancements Project. There is no local match requirement.
The $427,500 award was distributed by Project phases as follows:
Project Approval and Environmental Documents (PA&ED) - $10,000 Plans, Specifications and Estimate (PS&E) – $50,000
Construction (CON) - $367,500
On January 24, 2022, Caltrans issued an Authorization to Proceed to the City for the PA&ED and PS&E phases, establishing the date for eligible reimbursement.
The Project will install pedestrian countdown signal heads, advance stop bar before crosswalks (Bicycle Box), and modify signal phasing to implement a Leading Pedestrian Interval (LPI) at eight (8) signalized intersections:
1. Harbison Ave & E. Plaza Blvd
2. Harbison Ave & E. 8th St.
3. E Plaza Blvd & Highland Ave
4. Highland Ave & E. 8th St.
5. Highland Ave & E. 21st St.
6. Highland Ave & E. 18th St.
7. National City Blvd & E 8th St.
8. Highland Ave & E 30th St.
This project was identified through the review of two previous ly completed safety planning projects:
1) The City of National City INTRAConnect Plan which was funded by a Caltrans Sustainable Transportation Planning Grant in 2018; and
2) National City Systematic Safety Analysis Report Program (SSARP) which was funded by a Caltrans HSI P grant and used data collected from the Statewide Integrated Traffic Records System (SWITRS) for the most recent and complete 5 -year period, January 1, 2013-December 31, 2017, as part of a SSARP grant.
The eight (8) intersections were select ed for this HSIP project from the City of National City INTRAConnect Plan and City of National City’s SSARP that showed either a significant volume or severity of crashes.
Once the PA&ED and PS&E phases are complete, staff will return to the City Council for the appropriation of the Construction fund.
City Council Resolution authorizing the Mayor to execute the State-Aid Master Agreement and Program Supplement Agreement No. Z44 to allow the City to receive reimbursement of eligible project expenditures through the HSIP grant.
FINANCIAL STATEMENT:
HSIP Grant $60,000
Revenue Account: 296-06051-3463
Expenditure Account: 296-409-500-598-6051 - $60,000 (Pedestrian Safety Enhancements Project)
There is no local match requirement.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Not Applicable
ENVIRONMENTAL REVIEW:
This is a project under CEQA subject to a Categorical Exemption. Minor Additions to Schools CCR 15314. This project qualifies for a Notice of Exemption. CCR 15374.
PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
1. Exhibits
2. Allocation letter
3. Program Supplement Agreement & Master Agreement
4. Resolution
E PLAZA BLVD
HARBISON AVE
HIGHLAND AVEE PLAZA BLVD
E 18TH STE 21ST STE 30TH STHIGHLAND AVE
E 8TH STNATIONAL CITY BLVD
LOCATION 2LOCATION 1
LOCATION 3LOCATION 7LOCATION 4
LOCATION 6LOCATION 5LOCATION 8
9/24/2020Sheet 1 of 1
C:\CRA_SP\Chen Ryan\P-2020-070-HSIP_Cycle_10 - Files\National City - SSARP Based App\Attachment 2 - Vicinity Location Map\CAD\Vicinity Map.dwg Plot: Melanie Foronda Date: 10/26/2020 1:35:55 PM N0'2000'4000'SCALE 1" = 2000'
NATIONAL CITY HIGHWAY SAFETY IMPROVEMENT PROGRAM (HSIP) - CYCLE 10Attachment 2 - Vicinity and Location Map Legend
STATE OF CALIFORNIA - CALIFORNIA STATE TRANSPORTATION AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF TRANSPORTATION
Division of Local Assistance
1120 N STREET
P.O. BOX 942874, MS# 1
Sacramento, CA 94274-0001
TTY 711
File : 11-SD-0-NATC
HSIPSL-5066(050)
Signalized intersections at
Harbison Ave/E Plaza Blvd,
Harbison Ave/E 8th St, E Plaza
Blvd/Highland Ave,
January 24, 2022
Mr. Roberto Yano
Director of Public Works/City Engineer
City of National City
1243 National City Blvd.
National City, CA 91950
Dear Mr. Yano:
Your letter dated January 20, 2022 requested an allocation of State funds from the Highway Safety Improvement Program (HSIP) project (project location: Signalized intersections at Harbison Ave/E Plaza Blvd, Harbison Ave/E 8th St, E Plaza Blvd/Highland Ave, Highland Ave/E 8th St, Highland Ave/E 21st St, Highland Ave/E 18th St, ...). The State hereby makes the allocation in the amount of $60,000.00 of State funds for Preliminary Engineering phase of this project effective January 24, 2022. You may now proceed with the Preliminary Engineering phase of the project. Any work for the Preliminary Engineering phase that has been approved for funding and is performed after this date will be eligible for reimbursement.
Please refer to the Finance Letter for the complete approved funding of all phases for this project.
This Office will soon send you a Program Supplement Agreement for execution, along with a Master Agreement if one has not been executed. Please do not submit invoices for this project until the agreements are fully executed by both you and the State.
Invoices are to be submitted at a minimum of every six (6) months in order to remain active.
If you have any questions, please contact your District Local Assistance Engineer.
Sincerely,
SUJAYA KALAINESAN, Chief
Office of Project Implementation - South
Division of Local Assistance
c: DLA AE Project Files
(11) DLAE - Bryan Ott (Acting)
Local Program Accounting
HQ HSIP Manager - Richard Ke
Mr. Roberto Yano
Director of Public Works/City Engineer
City of National City
1243 National City Blvd.
National City, CA 91950
DEPARTMENT OF TRANSPORTATION
Division of Local Assistance
1120 N Street
P.O. BOX 942874, MS# 1
Sacramento, CA 94274-0001
for
PROGRAM SUPPLEMENT NO. OOOOOOZ44
to
ADMINISTERING AGENCY-STATE AGREEMENT
FOR STATE FUNDED PROJECTS NO 11-5066S21
Adv. Project ID
1122000139
Date: January 26, 2022
Location: 11-SD-O-NA TC
Project Number: HSIPSL-5066(050)
E.A. Number:
Locode: 5066
This Program Supplement, effective , hereby adopts and incorporates into the Administering Agency-State Agreement No. 11-5066S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).
The ADMINISTERING AGENCY further stipulates that as a condition to the payment by the State of any funds derived from sources noted below encumbered to this project, Administering Agency accepts and will comply with the Special Covenants and remarks set forth on the following pages.
PROJECT LOCATION: Signalized intersections at Harbison Ave/E Plaza Blvd, Harbison Ave/E 8th St, E Plaza Blvd/Highland Ave, Highland Ave/E 8th St, Highland Ave/E 21st St, Highland Ave/E 18th St, ...
TYPE OF WORK: Install ped countdown signal heads, advance stop bar before crosswalk, modify signal phasing to LPI
LENGTH: O.O(MILES)
Estimated Cost
$TATE
$60,000.0C
CITY OF NATIONAL CITY
By
Title
Date
Attest
State Funds
$60,000.00
LOCAL
Matching Funds
$0.0C
STATE OF CALIFORNIA
Department of Transportation
By
OTHER
Chief, Office of Project Implementation
Division of Local Assistance
Date
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:
$0.00
Accounting Officer Date $60,000.00
Program Supplement 11--506-244- SERIAL
SPECIAL COVENANTS OR REMARKS
11-SD-0-NATC
HSIPSL-5066(050)
1. A. This PROJECT has received STATE funds from Highway Safety Improvement Program (HSIP). The ADMINISTERING AGENCY agrees to administer the PROJECT in accordance with the Highway Safety Improvement Program (HSIP) Guidelines, the Local Assistance Procedures Manual (LAPM), the Local Assistance Program Guidelines (LAPG), and this PROGRAM SUPPLEMENT.
B. The STATE funds for this PROJECT may be provided under one or more phases, which are Preliminary Engineering (PE), Right-of-Way (R/W) and Construction (Con).
A phase-specific fund allocation is required, in addition to other requirements, before reimbursable work can occur for the phase identified. Each allocation will be assigned an effective date and identify the amount of funds allocated per phase. Unless otherwise determined, the effective date of the phase-specific allocation will constitute the start of reimbursable expenditures for the phase. The STATE funds available for reimbursement will be limited to the amount allocated by the STATE for the phase.
C. At the time of the first fund allocation approval for the Project, this PROGRAM SUPPLEMENT, a STATE-approved Allocation Letter and STATE Finance Letter are prepared to allow reimbursement of eligible PROJECT expenditures for the phase allocated.
D. STATE and ADMINISTERING AGENCY agree that any additional fund allocations made after the execution of this PROGRAM SUPPLEMENT, for the phase that has been authorized in the first fund allocation approval or for a new phase, will be encumbered on this PROJECT by use of a STATE-approved Allocation Letter and a STATE Finance Letter and are subject to the terms and conditions thereof.
E. This PROJECT is subject to the delivery requirements enacted by the HSIP guidelines. The delivery requirements may be accessed at: https://dot.ca.gov/programs/local-assistance/fed- and-state-programs/highway-safety-improvement-program/delivery-requirements-status- approved-projects.
F. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing of invoices for the construction phase.
G. The ADMINISTERING AGENCY shall invoice STATE for PE, R/W and CON costs no later than 180 days after the end of expenditure the phase. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor, prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and
Program Supplement 11--506-Z44- SERIAL
SPECIAL COVENANTS OR REMARKS
11-SD-0-NATC
HSIPSL-5066(050)
payment.
H. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current LAPM provisions.
I. ADMINISTERING AGENCY agrees to comply with the requirements in 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (applicable to Federal and State Funded Projects).
J. By executing this PROGRAM SUPPLEMENT, ADMINISTERING AGENCY agrees to provide the STATE, upon request, with the information related to the PROJECT for the purpose of project evaluation or other purposes.
K. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the State. Any changes to the approved PROJECT scope without the prior expressed approval of the State are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement.
Program Supplement 11--506-Z44- SERIAL
MASTER AGREEMENT
ADMINISTERING AGENCY-STATE AGREEMENT FOR
STATE-FUNDED PROJECTS
11 City of National City
-------- ---------------------------------------------- District Administering Agency
Agreement No. 11-5066S21
This AGREEMENT, is entered into effective this _______ day of __________, 20___, by and between the City of National City, hereinafter referred to as "ADMINISTERING AGENCY," and the State of California, acting by and through its Department of Transportation (Caltrans), hereinafter referred to as "STATE", and together referred to as "PARTIES" or individually as a "PARTY."
RECITALS:
1. WHEREAS, the Legislature of the State of California has enacted legislation by which certain State funds are made available for use on local transportation related projects of public entities qualified to act as recipients of these state funds; and
2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for funding from a State-funded program (herein referred to as STATE FUNDS), as defined in the Local Assistance Program Guidelines (LAPG) and/or in the respective CTC Guidelines, for use on local authorized transportation related projects as a local administered project(s), hereinafter referred to as "PROJECT"; and
3. WHEREAS, said PROJECT will not receive any federal funds; and
4. WHEREAS, before STATE FUNDS will be made available for PROJECT, ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish terms and conditions applicable to the ADMINISTERING AGENCY when receiving STATE FUNDS for a designated PROJECT facility and to the subsequent operation and maintenance of that completed facility.
NOW, THEREFORE, the PARTIES agree as follows:
ARTICLE I - PROJECT ADMINISTRATION
1. This AGREEMENT shall have no force or effect with respect to any program project unless and until a project- specific Program Supplement to this AGREEMENT for state funded projects, hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STATE and ADMINISTERING AGENCY.
2. The State approved project-specific allocation notification letter and approved CTC allocation documentation designate the party responsible for implementing PROJECT, type of work, and location of PROJECT for projects requiring CTC allocation by PROJECT component of work.
3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have been initially encumbered for PROJECT along with the matching funds to be provided by ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the PARTIES shall cause ADMINISTERING AGENCY to adopt all the terms of this AGREEMENT as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the governing body of ADMINISTERING AGENCY.
4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM SUPPLEMENT. The PARTIES agree that STATE may suspend future allocations, encumbrances and invoice payments for any on- going or future STATE FUNDED PROJECT performed by ADMINISTERING AGENCY if any project-specific PROGRAM SUPPLEMENT is not returned, unless otherwise agreed by STATE in writing.
5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the specific PROJECT.
6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of the effective date of allocation by CTC, or by STATE for allocations delegated to STATE by CTC, for said PROJECT.
7. Projects allocated with STATE FUNDS will be administered in accordance with the current CTC STIP Guidelines, applicable chapter(s) of the LAPG, LAPM and/or any other instructions published by STATE.
8. ADMINISTERING AGENCY agrees to ensure compliance with all relevant State laws and requirements for work related to PROJECT, including the California Environmental Quality Act (CEQA).
9. ADMINISTERING AGENCY's eligible costs for preliminary engineering work includes all preliminary work directly related to PROJECT up to contract award for construction, including, but not limited to, environmental studies and permits (E&P), preliminary surveys and reports, laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS&E), advertising for bids, awarding of a contract and project development contract administration.
10. ADMINISTERING AGENCY's eligible costs for construction engineering include actual inspection and supervision of PROJECT construction work; construction staking; laboratory and field testing; and the preparation and processing of field reports, records, estimates, final reports, and allowable expenses of employees/consultants engaged in such activities.
11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY's employees or its contracted engineering consultant shall be responsible for all PROJECT engineering work.
12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final environmental approval of PROJECT. Final design entails the design work necessary to complete the PS&E and other work necessary for a construction contract but not required earlier for environmental clearance of that PROJECT.
13. If PROJECT is not on STATE-owned right-of-way, PROJECT shall be constructed in accordance with Chapter 11 of the LAPM that describes minimum statewide design standards for local agency streets and roads. The design standards for projects off the National Highway System (NHS) allow STATE to accept either the current Caltrans Highway Design Manual standards, the current FHWA-adopted American Association of State Highway and Transportation Officials (AASHTO) A Policy on Geometric Design of Highways and Streets standards, or the approved geometric design standards of ADMINISTERING AGENCY.
Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-approved standard specifications, standard plans, materials sampling and testing quality assurance programs that meet the conditions described in the then current Local Assistance Procedures Manual.
14. If PROJECT involves work within or partially within STATE-owned right-of-way, that PROJECT shall also be subject to compliance with the policies, procedures and standards of the STATE Project Development Procedures Manual and Highway Design Manual and where appropriate, an executed cooperative agreement between STATE and ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES. ADMINISTERING AGENCY and its contractors shall each obtain an encroachment permit through STATE prior to commencing any work within STATE rights-of-way or work which affects STATE facilities.
15. When PROJECT is not on the State Highway System (SHS) but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract.
16. ADMINISTERING AGENCY shall comply with the provisions of sections 4450 and 4454 of the California Government Code, as well as other Department of General Services guidance, if applicable, for the contract PS&E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.
17. ADMINISTERING AGENCY shall provide a full-time public employee to be in responsible charge of each PROJECT. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. ADMINISTERING AGENCY may utilize consultants to perform supervision and inspection work for PROJECT with a fully qualified and licensed engineer. Utilization of consultants does not relieve ADMINISTERING AGENCY of its obligation to provide a full-time public employee to be in responsible charge of each PROJECT.
18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall advertise, award, and administer the PROJECT construction contract or contracts.
19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or contractor forces during any temporary suspension of PROJECT or at any other time may not be charged to the PROJECT.
20. ADMINISTERING AGENCY shall submit PROJECT-specific award information to STATE's District Local Assistance Engineer, within sixty (60) days after contract award.
21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a "Final Project Expenditure Report", LAPM Exhibit 17-M, within one hundred eighty (180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a "Final Project Expenditure Report", within 180 days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the Local Assistance Procedures Manual.
22. ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of 1990 that prohibits discrimination on the basis of disability and all applicable regulations and guidelines issued pursuant to the ADA.
23. The Governor and the Legislature of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto as Exhibit A and further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for performance of work connected with PROJECT shall incorporate Exhibit A (with third party's name replacing ADMINISTERING AGENCY) as parts of such agreement.
24. ADMINISTERING AGENCY shall include in all contracts and subcontracts awarded when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective at the date of contract award by the ADMINISTERING AGENCY.
ARTICLE II - RIGHTS-OF-WAY
1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all necessary rights of way have been secured. Prior to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights-of-way are available for construction purposes or will be available by the time of award of the construction contract.
2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein includes, and is limited to, the following, unless the PROGRAM SUPPLEMENT provides otherwise.
(a) Expenditures of capital and support to purchase all real property required for PROJECT free and clear of liens, conflicting easements, obstructions and encumbrances, after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY.
(b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of damages to owners of remainder real property not actually taken but injuriously affected by PROJECT. (c) The cost of relocation payments and services provided to owners and occupants pursuant to Government Code sections 7260-7277 when PROJECT displaces an individual, family, business, farm operation or nonprofit organization.
(d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is recorded for sale proceeds used to offset PROJECT costs. (e) The cost of all unavoidable utility relocation, protection or removal.
(f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation or removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and where the actual generator cannot be identified, and recovery made.
3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right-of-way for a PROJECT is not clear as certified by ADMINISTERING AGENCY, including, but not limited to, if said right-of-way is found to contain hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING AGENCY shall pay, from its own non- matching funds, any costs which arise out of delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights-of-way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work.
ARTICLE III - MAINTENANCE AND MANAGEMENT
1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity.
2. Upon ADMINISTERING AGENCY's acceptance of the completed construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreement(s) between itself and the other jurisdictional Agency or Agencies providing for the operation, maintenance, ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after receipt of notice from STATE that a PROJECT, or any portion thereof, is not being properly operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the approval of future STATE FUNDED PROJECTS of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE's concurrence.
3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as PROJECT reasonably requires.
Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY.
All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements.
4. ADMINISTERING AGENCY shall comply with all applicable law, including but not limited to, all applicable legal authority regarding construction standards.
ARTICLE IV - FISCAL PROVISIONS
1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the CTC.
2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this AGREEMENT, the execution of each project-specific PROGRAM SUPPLEMENT and/or STATE's approved finance letter.
3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices in arrears for reimbursement of allowable PROJECT costs at least once every six months commencing after the STATE FUNDS are encumbered on either the project-specific PROGRAM SUPPLEMENT or through a project-specific finance letter approved by STATE. STATE reserves the right to suspend future allocations and invoice payments for any on-going or future STATE FUNDED project performed by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period
4. Invoices shall be submitted on a standardized billing summary template, in accordance with Chapter 5 of the LAPM to claim reimbursement by ADMINISTERING AGENCY. For construction invoices, pay estimates must be included.
5. ADMINISTERING AGENCY must retain at least one copy of supporting backup documentation for allowable costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.
6. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursements of actual allowable PROJECT costs already incurred and paid for by the ADMINISTERING AGENCY.
7. Indirect Cost Allocation Plans/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to the Inspector General - Independent Office of Audits and Investigations for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect cost incurred within each fiscal year being claimed for reimbursement. ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the LAPM, and the ICAP/ICRP approval procedures established by STATE.
8. STATE will withhold the greater of either two (2) percent of the total of all STATE FUNDS encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.
9. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES with a finance letter, and an allocation notification letter when applicable. STATE FUNDING may be increased to cover PROJECT cost increases only if such additional funds are available and the CTC and/or STATE concurs with that increase in the form of an allocation and finance letter.
10. When such additional STATE FUNDS are not available, ADMINISTERING AGENCY agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own funds.
11. ADMINISTERING AGENCY shall use its own non-STATE FUNDS to finance the local share of eligible costs and all PROJECT expenditures or contract items ruled ineligible for financing with STATE FUNDS. STATE shall make the final determination of ADMINISTERING AGENCY's cost eligibility for STATE FUNDED financing with respect to claimed PROJECT costs.
12. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall include overhead assessments in accordance with section 8755.1 of the State Administrative Manual.
13. STATE FUNDS allocated by the CTC and/or STATE are subject to the timely use of funds provisions approved in CTC Guidelines and State procedures approved by the CTC and STATE.
14. STATE FUNDS encumbered for PROJECT are available for liquidation only for a limited period from the beginning of the State fiscal year when those funds were appropriated in the State Budget. STATE FUNDS not liquidated within these periods will be reverted unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Section 16304 of the Government Code. The exact date of fund reversion will be reflected in the STATE signed PROJECT finance letter.
15. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid to rank and file STATE employees under current California Department of Human Resources (CalHR) rules unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Government Code section 16304. If the rates invoiced by ADMINISTERING AGENCY are in excess
of CalHR rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand.
16. ADMINISTERING AGENCY agrees to comply with California Government Code 4525- 4529.14. Administering Agency shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall also comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326.
17. ADMINISTERING AGENCY agrees and will assure that its contractors and subcontractors will be obligated to agree that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326Governments.
ADMINISTERING AGENCY agrees to comply with the provisions set forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies.
18. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR 200 excluding 2 CFR Part 200.318-200.326, 48 CFR Chapter 1, Part 31, LAPM, Public Contract Code (PCC) 10300- 10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations.
19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be questioned, disallowed, or unallowable under 2 CFR, Part 200, 48 CFR, Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646, LAPM, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations are subject to repayment by ADMINISTERING AGENCY to STATE and may result in STATE imposing sanctions on ADMINISTERING AGENCY as described in Chapter 20 of the Local Assistance Procedures Manual.
20. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by STATE as provided herein or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty (30) days of demand, or within such other period as may be agreed to in writing between the PARTIES hereto, STATE, acting through the State Controller, the State Treasurer, the CTC or any other public entity or agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid by or owed to STATE for each PROJECT, from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and/or may also withhold approval of future STATE FUNDED projects proposed by ADMINISTERING AGENCY.
21. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is
constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder.
22. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT.
ARTICLE V
AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS
1. STATE reserves the right to conduct technical and financial audits of PROJECT work and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by paragraph three (3) of Article V.
2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices sent to or paid by STATE.
3. ADMINISTERING AGENCY, ADMINISTERING AGENCY's contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States, all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts, and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above-referenced parties shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years, or 35 years for Prop 1B funds, from the date of final payment to ADMINISTERING AGENCY.
4. ADMINISTERING AGENCY shall not award a construction contract over $25,000 on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or used as local match credit must meet the requirements set forth in this AGREEMENT regarding local match funds.
5. ADMINISTERING AGENCY shall comply with Chapter 10 (commencing with Section 4525) Division 5 of Title 1 of the Government Code and shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall comply with Chapter 10 of the LAPM for A&E Consultant Contracts.
6. ADMINISTERING AGENCY shall comply with Government Code Division 5 Title 1 sections 4525-4529.5 and shall undertake the procedures described in California Government Code 4527(a) and 4528(a) for procurement of professional service contracts. Administering Agency shall follow Public Contract Code Section 10335-10381 for other professional service contracts.
7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V, AUDITS, THIRD-PARTY CONTRACTING, RECORDS RETENTION AND REPORTS and shall mandate that travel and per diem reimbursements and third- party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors.
8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner that is required of all other PROJECT expenditures.
9. Except as provided in this Article, this AGREEMENT is solely between and for the benefit of the PARTIES and there are no third-party beneficiaries.
ARTICLE VI - MISCELLANEOUS PROVISIONS
1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and other California laws.
2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and regulations, and the Local Assistance Program Guidelines and Local Assistance Procedures Manual as published by STATE and incorporated herein, including all subsequent approved revisions thereto applicable to PROJECT unless otherwise designated in the project-specific executed PROJECT SUPPLEMENT.
3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner.
4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE.
5. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT.
6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT, and ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT.
7. ADMINISTERING AGENCY certifies, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the PROJECT work actually performed, or in STATE's discretion, to deduct from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.
8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board.
9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE that may have an impact upon the outcome of this AGREEMENT or any individual PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of a PROJECT undertaken pursuant to this AGREEMENT. These disclosures shall be delivered to STATE in a form deemed acceptable by the STATE prior to execution of this AGREEMENT.
10. ADMINISTERING AGENCY hereby certifies that it does not have, nor shall it acquire, any financial or business interest that would conflict with the performance of any PROJECT initiated under this AGREEMENT.
11. ADMINISTERING AGENCY certifies that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its sole discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.
12. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by the STATE's Contract Manager, who shall be identified to ADMINISTERING AGENCY at the time of execution of this AGREEMENT and, as applicable , any time that Contract Manager changes during the duration of this AGREEMENT who may consider any written or verbal evidence submitted by ADMINISTERING AGENCY.
The decision of the Contract Manager, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered and determined by the Contract Manager.
13. Neither the pendency of a dispute nor its consideration by the Contract Manager will excuse the ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT and each PROGRAM SUPPLEMENT.
14. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority or jurisdiction of ADMINISTERING AGENCY arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims and suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under this AGREEMENT.
15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, under or in connection with any work, authority or jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT.
16. In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT; (b) failing to maintain any applicable bonding requirements; and (c) otherwise materially violating the terms and conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING AGENCY.
17. No termination notice shall become effective if, within thirty (30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to STATE.
18. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the
extent to which funding of work under this AGREEMENT and the applicable PROGRAM SUPPLEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of ARTICLE VI, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the PROGRAM SUPPLEMENT and/or STATE-approved finance letter prior to termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and conditions of this AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the cost of any PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY.
19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a project-specific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this AGREEMENT.
20. Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part.
21. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES, and no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES.
IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officer.
STATE OF CALIFORNIA City of National City
DEPARTMENT OF TRANSPORTATION
By______________________________ By_______________________________ ________________________________ _______________________________ Chief, Office of Project Implementation City of National City Division of Local Assistance Representative Name & Title (Authorized Governing Body Representative)
Date __________________________ Date __________________________