Qu
28 Appendix D (continued) Asphalt Emulsified - Continued Materials to be Sampled or Tested Sample Size Sampling/Testing Frequency Typical Test Methods Description or Comments Emulsified Asphalt (Testing) One 0.5-gal. sample placed in a clean, sealed can. Obtain one sample at the asphalt concrete plant for each 1,000 tons of asphalt concrete placed. ASTM D4402 AASHTO T201 This test determines the Brookfield viscosity. Emulsified Asphalt (Testing) One 0.5-gal. sample placed in a clean, sealed can. Obtain one sample at the asphalt concrete plant for each 1,000 tons of asphalt concrete placed. ASTM D88 AASHTO T72 This test determines the Saybolt- Furol viscosity of emulsified asphalt @ 77 degrees F (seconds). Hot Mix Asphalt (Asphalt Concrete) – Concrete Materials to be Sampled or Tested Sample Size Sampling/Testing Frequency Typical Test Methods Description or Comments Asphalt Concrete (Sampling) Obtain one 30-lb. sample each day of production Obtain one sample at the asphalt concrete plant for each 5,000 tons of asphalt concrete placed. ASTM D75, D140, D979 CT 125 AASHTO T 40, T168 This test describes the procedure to sample the asphalt concrete.
Asphalt Concrete
(Testing)
4” x 8” cores
Take one 4” x 8” core for every 500ft of paved roadway.
ASTM D1188,
D1560, D1561,
D5361
CT 304
AASHTO T246, T247
This test determines the field density of street samples.
Asphalt Concrete
(Testing)
Obtain one 30-lb. sample for each day of production
Obtain one sample for every five cores taken.
ASTM D1188,
D1560, D1561,
D5361
CT 304
AASHTO T246, T247
This test determines the laboratory density and relative compaction of asphalt concrete.
Asphalt Concrete
(Testing)
4” x 8” cores Obtain one sample for every five
cores taken.
ASTM D2726,
D1188, D5361
This test determines the specific gravity of compacted bituminousmixture dense- graded or non-absorptive.
Division of Local Assistance, Office of Procedures Development and Training ality Assurance Program (QAP) Manual for Use by Local Agencies Revised January 20, 2011
Qu
Division of Local Assistance, Office of Procedures Development and Training ality Assurance Program (QAP) Manual for Use by Local Agencies Revised January 20, 2011 Appendix D (continued)
Hot Mix Asphalt (Asphalt Concrete) –Continued
Materials to be
Sampled or
Tested
Sample Size Sampling/Testing Frequency Typical Test
Methods
Description or Comments
Asphalt Concrete
(Testing)
One 30-lb sample Obtain one sample for every 1,000
tons of asphalt concrete.
ASTM D1559
AASHTO T245
This test determines the resistance to plastic flow of prepared mixes as determined by the Marshall Method.
Asphalt Concrete
(Testing)
One 30-lb sample Obtain one sample for every 1,000
tons of asphalt concrete.
ASTM C117,
D2172 (use
Method B)
AASHTO T164
This test determines the screen analysis ofaggregates recovered from asphaltmaterials.
Geotextile Fabric
(Placed Under
the Asphalt Concrete)
(Testing)
One 12 ft. x 3 ft. sample Obtain one sample per job. ASTM D4632 AASHTO M288
This test determines the weight per sq. yd. and grabs strength ofgeotextile fabrics.
Asphalt Concrete
(Testing)
Sample any test location (random basis)
Obtain one sample for every 1,000tons of asphalt concrete.
ASTM D2950
CT 375
This test determines the nuclear field density of in-place asphalt concrete.
Asphalt Concrete
(Testing)
One 10-lb sample Obtain one sample during every day
of production.
ASTM D1560,
D1561
CT 366
AASHTO T246,
T247
This test determines the stability value of asphalt concrete.
Slurry Seals
(Sample)
One 0.5 gal. sample in a clean, dry plastic container.
Obtain one sample per truck ASTM D979
CT 125
AASHTO T 40,
T168
This test describes the procedure for sampling the slurry seal.
Aggregate for
Slurry Seals
(Testing)
One 30-lb. sample. Obtain at least one sample per
project from the belt or hopper orstockpile and test for SandEquivalent ASTM D2419
CT 217
AASHTO T176
This test determines the Sand Equivalent of aggregates. 29
Division of Local Assistance, Office of Procedures Development and Training Quality Assurance Program (QAP) Manual for Use by Local Agencies Revised January 20, 2011 Appendix D (continued)
Slurry Seals
Materials to be
Sampled or Tested
Sample Size Sampling/Testing Frequency Typical Test
Methods
Description or Comments
Aggregate for Slurry
Seals
(Testing)
One 30-lb. sample. Obtain at least one sample per project from the belt, hopper, or stockpile and test for sieve analysis of fine sand.
ASTM C117
AASHTO T11
This test determines the sieve analysis of fine sand (gradation ofmaterials finer than No. 200 sieve by wash grading).
Slurry Seals
(Testing)
One 0.5 gal. sample in a clean, dry plastic container.
Test one sample per project and test forAbrasion.
ASTM D3910 This test determines the Wet Track
Abrasion Test (2) (WTAT).
Materials to be
Sampled or Tested
Sample Size Sampling/Testing Frequency Typical Test
Methods
Description or Comments
Steel Strand
(Testing)
Sample strand atvarious sizes.
This item may be accepted using a Certificate of Compliance. Sample and test at least two steel strands per job when a Certificate of Compliance is not used.
ASTM A370,
A416, E328
AASHTO T244
This test determines the tensile strength of uncoated seven-wire stress-relieved strand for prestressed concrete.
Steel Rebar
(Testing)
Sample rebar atvarious sizes.
This item may be accepted using a Certificate of Compliance. Sample and test at least two steel rebar per job when a Certificate of Compliance is not used.
ASTM A615,
A370
AASHTO T244
This test determines the steelreinforcement bar tensile strengthand bend capability.
Steel
30
Attachment #2
Source Inspection Request, Exhibit 16-V of the Local Assistance Procedure Manual (LAPM)
Local Assistance Procedures Manual EXHIBIT 16-V
Source Inspection Request to DLAE
February 1, 1998
SAMPLE COVER MEMO
SOURCE INSPECTION REQUEST
FROM LOCAL AGENCY TO
CALTRANS’ DISTRICT LOCAL ASSISTANCE ENGINEER
(Prepared By Applicant On Applicant Letterhead)
To: (name) Date:
Caltrans’ District Local Assistance Engineer
Caltrans’ Local Assistance Office
(district office address)
Federal-aid Project Number: (if one has been assigned)
Project Description:
Project Location:
Subject: (Source Inspection for Project Name, County)
We are requesting that Caltrans provide Source Inspection (reimbursed) services for the above mentioned project. We understand we are responsible for paying for this service provided for by the State. Listed below are the materials for which we are requesting Caltrans’ Source Inspection (reimbursed) services.
Materials that will require source inspection:
_________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ Justification for request: (Based on the requirements in Section 16.14 under “Source Inspection”) ___________ _________________________________________________________________________________________ _________________________________________________________________________________________ Any question you might have about the above materials should be directed to:_______________________________ , at (phone #) .
Approved:
______________________________________ ____________________________________________ (Applicant Representative Name) District Local Assistance Engineer ______________________________________ ____________________________________________ (Title) (Date)
_________________________________________________________________________________________ (Local agency, name & address)
Attachment #3
Appendix F of the QAP Manual
Division of Local Assistance, Office of Procedures Development and Training Quality Assurance Program (QAP) Manual for Use by Local Agencies Revised January 20, 2011 Appendix F - Construction Materials Accepted by a Certificate of Compliance *
Soil Amendment
Fiber
Mulch
Stabilizing Emulsion
Plastic Pipe
Lime
Reinforcing Steel
Structural Timber and Lumber
Treated Timber and Lumber
Timber and Lumber
Culvert and Drainage Pipe Joints
Reinforced Concrete Pipe
Corrugated Steel Pipe and Corrugated Steel Pipe Arches
Structural Metal Plate Pipe Arches and Pipe Arches
Perforated Steel Pipe
Polyvinyl Chloride Pipe and Polyethylene Tubing
Steel Entrance Tapers, Pipe Down drains, Reducers, Coupling Bands and Slip Joints Aluminum Pipe (Entrance Tapers, Arches, Pipe Down drains, Reducers, Coupling Bands and Slip Joints) Metal Target Plates
Electrical Conductors
Portland Cement
Minor Concrete
Waterstop
* If Caltrans Standard Specifications May 2006 is part of contract specifications.
Note: Usually these items are inspected at the site of manufacture or fabrication and reinspected after delivery to the job site.
32
Attachment #4
Appendix J of the QAP Manual
Division of Local Assistance, Office of Procedures Development and Training Quality Assurance Program (QAP) Manual for Use by Local Agencies Revised January 20, 2011 Appendix J.1 - Example of a Vendor’s Certificate of Compliance 36
Division of Local Assistance, Office of Procedures Development and Training Quality Assurance Program (QAP) Manual for Use by Local Agencies Revised January 20, 2011 Appendix J.2 - Example of a Certificate of Compliance for Portland Cement (continued)
This is to certify is to certify that the
Portland Cement .
Supplied by ABC Cement Company complies with all
requirements for Type II Portland Cement when tested in accordance with ASTM C - 494.
Local Agency Project No. Albert Howakowa
HP21L – 5055 – 111 Quality Assurance Engineer
ABC Cement Company
Date: 07/07/07 .
37
Attachment #5
Appendix K of the QAP Manual
Division of Local Assistance, Office of Procedures Development and Training Quality Assurance Program (QAP) Manual for Use by Local Agencies Revised January 20, 2011 Appendix K - Examples of Materials Certificates/Exceptions (Signed by the Resident Engineer at the Completion
of the Project)
Federal-aid Project No.: Project HP21L – 5055 – 111
Subject: Materials Certification
This is to certify that the results of the tests on acceptance samples indicate that the materials incorporated in the construction work and the construction operations controlled by sampling and testing were in conformity with the approved plans and specifications. X All materials exceptions to the plans and specifications on this project are noted below.
No exceptions were found to the plans and specifications on this project.
Bill Sanders_________ 7/7/07
Resident Engineer (Print Name) Resident Engineer (Signature) (Date) Note: The signed original of this certificate is placed in the Resident Engineer’s project files and one copy is mailed to the DLAE and filed under “Report of Expenditures.” See the attachment (next page)
38
Action Taken
Division of Local Assistance, Office of Procedures Development and Training Quality Assurance Program (QAP) Manual for Use by Local Agencies Revised January 20, 2011 Appendix K (continued)
Attachments: Materials Exceptions (Acceptance Testing)
Type of
Test
Description
of Work
Total Tests
Performed On
the Project
Number
of Failed
Tests
Action Taken
Slump Test Concrete
Sidewal Sidewalk
8 1 When the measured slump exceeded the p exceeded the maximum limit, the entire con tire concrete load was
rejecte rejected.
Sand
Equivalent
Aggregate Aggregate
for Structural
Concrete
10 1 The tested S.E. wa The tested S.E. was 70 and the contract d the contract compliance specification liance specification was 71 minimum.
However, the concrete 28-day compressive
strength was 4800 psi. The concrete was
considered adequate and no materials
deductions were taken.
Compaction Sub grade
Material
12 1 One failed test e failed test was noted. The failed The failed area was watered and reworked. When this was
completed, a retest was a retest was performed rformed. The retest e retest was acce was acceptable.
Compaction Hot Mix As-
phalt
12 1 One failed ar iled area was noted. It was reworked and retested. and retested. The sec The second test met specifications. specifications.
Bill Sanders July 4, 2007
Resident Engineer (Print Name) Resident Engineer (Signature) Date 39
RESOLUTION NO. 2024 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1)
ADOPTING AN UPDATED QUALITY ASSURANCE PROGRAM THAT PROVIDES SAMPLING
AND TESTING PROCEDURES TO ENSURE THAT MATERIALS INCORPORATED INTO
CONSTRUCTION PROJECTS ARE IN CONFORMANCE WITH THE CONTRACT SPECIFICATIONS AND CALTRANS REQUIREMENTS FOR FEDERAL-AID PROJECTS; AND 2) AUTHORIZING THE CITY MANAGER OR THEIR DESIGNEE TO EXECUTE THE QUALITY ASSURANCE PROGRAM.
WHEREAS, California Department of Transportation (“Caltrans”) requires that all agencies receiving Federal-Aid funds through transportation grant programs adopt a Quality Assurance Program (“QAP”), and update the plan at least once every five years; and WHEREAS, the QAP is required for any federally-funded construction project administered by Caltrans and, without an adopted QAP, Caltrans will not process the Construction Authorization; and
WHEREAS, the City Council adopted a QAP on February 4, 2014, per Resolution No. 2014-13, and last adopted a QAP on January 22, 2019, per Resolution No. 2019-3; and WHEREAS, the Engineering & Public Works Department has quality assurance procedures for materials sampling and testing as part of the contract specifications for individual capital improvement projects, which are based on Caltrans, American Association of State Highway and Transportation Officials, and other nationally recognized specifications; and WHEREAS, the Caltrans Office of Local Assistance updated its “Quality Assurance Program Manual for Use By Local Agencies” in 2011, which contains a sample QAP for local agencies to modify; and
WHEREAS, City staff has reviewed the QAP and determined no adjustments are necessary.
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 adopts the Quality Assurance Program, attached to the Agenda Report as Exhibit A, that provides sampling and testing procedures to ensure that materials incorporated into construction projects are in conformance with the contract specifications and Caltrans requirements for federal-aid projects.
Section 2: That the City Council hereby authorizes the City Manager or their designee, to execute the Quality Assurance Program.
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.
PASSED and ADOPTED this 19th day of November, 2024.
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Barry J. Schultz, City Attorney
AGENDA REPORT
Department: Police Department
Prepared by: Ron Gutlay, Management Analyst II
Meeting Date: Tuesday, November 19, 2024
Approved by: Benjamin A. Martinez, City Manager
SUBJECT:
Agreement with the City of Chula Vista to Provide Animal Shelter Services and Related Administrative Services.
RECOMMENDATION:
Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing the City Manager to Execute an Agreement with the City of Chula Vista for Animal Shelter and Related Administrative Services for National City in a Not-to-Exceed Amount of $499,656 for Fiscal Year 2025.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
The City of Chula Vista, pursuant to previous agreements with the City of National City, has provided animal shelter and related administrative services to National City residents since 1991.
The most recent agreement expired on June 30, 2024. Staff recommends entering into a new agreement with the City of Chula Vista for continuation of these services. Shelter services shall be provided at the facility located in the City of Chula Vista at 130 Beyer Way, Chula Vista, California, which provides a full range of animal control services to the citizens of Chula Vista.
The new agreement (see Exhibit A) would be effective on July 1, 2024 for an initial one-year term with the option to extend for four additional years. Services include the impounding, adoption, redemption, and the care and disposition of dogs, cats, and other small animals. The cost for the first year is the not-to-exceed amount of $499,656 that will be billed in monthly installments. Any redemption fees paid by National City residents will reduce the monthly invoice to the City.
Further, should the City of National City have only one full time Animal Control Officer, the monthly invoice will be reduced by 15%.
FINANCIAL STATEMENT:
If approved, the cost for the first year will be up to $499,656. Appropriations for this contract are included in the FY25 Police Department’s Budget in account 100-70-21-21100-7261 Emergency Animal Treatment. Subsequent year costs will be based on the average of animal intakes from the preceding three (3) calendar years, but will not increase or decrease by more than 5% from the prior year.
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:
The Agenda Report was posted within 72 hours of the meeting date and time in accordance with the Ralph M. Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A - Animal Services Agreement
Exhibit B - Resolution
1 City of Chula Vista Agreement No.: 2024-2501
Animal Control Services: CITY OF NATIONAL CITY
CITY OF CHULA VISTA
AGREEMENT WITH CITY OF NATIONAL CITY
TO PROVIDE ANIMAL SHELTER SERVICES
This Agreement is entered into effective as of July 1, 2024(“Effective Date”) by and between the City of Chula Vista, a chartered municipal corporation (“City”) and the City of National City, a California municipal corporation (“National City”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS, City owns and operates an animal care facility, located at 130 Beyer Way, Chula Vista, California and provides a full range of animal control services to the citizens of Chula Vista; and WHEREAS, on June 16, 2020, National City entered into an agreement of up to four (4) years with City for City to provide animal shelter services for the impounding, adoption, redemption, and the care and disposition of dogs, cats, and other small animals; and
WHEREAS, National City desires to enter into an new agreement with City, for City to continue to provide animal shelter services for the impounding, adoption, redemption, and the care of the disposition of dogs, cats, and other small animals; and
WHEREAS, City has the authority to enter into contracts with other agencies to provide such services.
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and National City hereby agree as follows:
1. TERM
1.1 Term. This Agreement shall commence on the Effective Date and shall terminate, subject to Sections
8.1 and 8.2 of this Agreement, one (1) year after the Effective Date; provided, however, provisions which expressly survive termination shall remain in effect. This Agreement may be extended in accordance with Exhibit A, Section 5.
2. SERVICES
2.1 Services. City shall provide general animal shelter, and related administrative services to the residents of National City to the extent and in the manner set forth herein.
A. Shelter Services. City shall provide the shelter services (“Shelter Services”) to the residents of National City in the manner and type described below:
(1) Shelter Location. Shelter Services shall be provided at the facility located in the City of Chula Vista at 130 Beyer Way (“Facility”).
2 City of Chula Vista Agreement No.: 2024-2501
Animal Control Services: CITY OF NATIONAL CITY
(2) Hours of Operation. The Facility hours are 10:00am to 5:00pm, Tuesday through Friday, and 10:00am to 4:00pm on Saturday, and the Facility is closed daily from 12pm to 1pm. The Facility is closed on Sunday, Monday, and all major holidays. a. City shall notify National City of changes to Facility hours in advance of such changes. (3) Types of Services.
a. Strays. City shall accept strays at no charge to the National City residents. b. Relinquishing Animals. National City residents may relinquish owned animals to the facility for euthanasia or adoption as space allows. There is a fee to the customer for the service.
c. Redeeming Animals. National City residents may redeem animals from the facility. d. Holding. City agrees to hold all dogs and cats for the minimum holding period required by the California Food and Agricultural Code and other applicable state law. In accordance with applicable state code sections, animals with communicable diseases and severe injuries or illness may be euthanized prior to the expiration of the normal holding period. Veterinary medical care will be provided as needed for all impounded animals for the duration of their hold period as needed. City will attempt to notify owners of identified animals that their animal is in the custody of the City Animal Care Facility and advise them of the holding period. National City shall relinquish all animals held in the Facility and not claimed or adopted to City for disposition in accordance with all applicable laws, policies, or procedures as deemed appropriate by the City Animal Care Facility Administrator. Upon payment of all appropriate fees, City will release to the legal owner, any impounded domestic animal. City will have sole discretion, without recourse to National City, to release animals under special circumstances regardless of payment of fees.
i. No Medical Research. City will not sell or give any live animal to a medical research facility at any time or from any jurisdiction. e. Spaying and Neutering. City will ensure all dogs, cats, and rabbits adopted from the shelter are spayed or neutered at the time of adoption. Additionally, the City will provide the public with low-cost spay/neuter information and assistance. This service is made possible through grants and donations as available. f. Maintenance of Facility. City shall maintain its Facility in a humane manner and shall keep its Facility in a sanitary condition at all times. All services furnished by City shall be provided in accordance with local laws and the laws of the State of California. City shall use humane methods in the care, euthanizing, and disposition of any animal coming under its jurisdiction.
B. Administrative Services. City shall provide the following administrative services.
3 City of Chula Vista Agreement No.: 2024-2501
Animal Control Services: CITY OF NATIONAL CITY
(1) Meetings. City will provide a representative to attend National City meetings that involve animal shelter issues upon request and with reasonable advance notice. (2) Meet and Confer. Representatives from both Parties will meet in good faith regarding operational issues associated with the administration of this Agreement. (3) Reports. City will provide monthly reports to National City, upon request. These reports will include the number of impounds, redemptions, euthanasians, service responses, and adoptions. (4) Notification. City shall notify National City of the nature, circumstances, and status of major incidents. City will also provide, if requested, copies of all supporting documents and information involving the incident. National City will provide a list of its designated city officials to City and the recommended methods to contact the designated individuals. (5) Testimony. When requested by National City, and at an additional cost, City shall make its employees and/or other percipient witness under its control, available for any challenge stemming from the services provided herein (including but not limited to Municipal Code citations) as needed to testify in a court of law, administrative or other proceeding. This duty shall survive the termination of this Agreement.
(6) Training.
a. Two Week Training. Upon National City’s request, the City may agree to train incoming National City Animal Regulations Officers (“AROs”) for a period of two (2) weeks. Training will include daily ride-alongs with City Animal Control Officer(s).
Prior to commencing training, National City shall pay City a training fee of $2,000 per ARO.
b. Two Hour Training. Upon National City’s request, the City may agree to have a City Animal Control Officer conduct a two-hour one-on-one training session for incoming National City AROs. Training will not include a ride along with City Animal Control Officer(s). Prior to commencing training, National City shall pay City a training fee of $75 per ARO.
3. EXCLUDED SERVICES
3.1 General. The following services are not included in the scope of services covered under this Agreement.
A. Indigenous Animals. City will not trap skunks, opossums or other indigenous small animals for the purpose of nuisance control. Wildlife will only be handled for purposes of public safety or for humane reasons. Cat traps will be provided and monitored by National City.
B. Dead and Injured Animals. Dead animals on private property are the responsibility of the property owner. Sick or injured animals are the responsibility of the animal owner.
C. Licensing. All dog licensing services will be provided and monitored by National City.
4 City of Chula Vista Agreement No.: 2024-2501
Animal Control Services: CITY OF NATIONAL CITY
4. NATIONAL CITY OBLIGATIONS
4.1 Payment. National City shall pay the City the following amounts in the manner set forth herein.
A. Monthly Payments. Commencing on July 1, 2024 National City agrees to pay City $41,638 per month for FY 2024/2025 (July 1, 2024- June 30, 2025). If National City only maintains one (1) permanent full time Animal Regulation Officer on its workforce, National City may notify the City and receive a 15% reduction in monthly payments.
(1) Invoices and Payment Date. The City shall submit quarterly billing to National City the month following the billing period and that amount shall be due and payable within thirty (30) calendar days of the invoice date.
(2) Redemption Fees. Monthly payments shall be reduced by any redemption fees collected under this Agreement.
B. Contract Extension Pricing. Pricing for each subsequent fiscal year and contract extensions shall be based on an average of animal intakes from the preceding three (3) calendar years. Pricing cannot increase or decrease by more than 5% from the prior year.
(1) No later than April 30 each year, the City will notify National City of the actual animal intakes for the preceding calendar year, and the proposed contract pricing for the upcoming fiscal year. (2) If National City desires to extend the term, it shall notify City in writing no later than May 31 of each year that it accepts the proposed contract pricing for the upcoming fiscal year in accordance with Exhibit A, Section 5.
C. Cat and Dog Spay/Neuter Clinics. As long as the Facility receives grants and donations for monthly low cost spay/neuter clinics, the City will provide this service at no cost to National City. If grants/donations do not cover monthly clinics National City will pay $1,500 per clinic up to four (4) clinics per year.
4.2 Support Services.
A. Provision of Data. National City shall provide City with a current listing of all animal licenses issued, including permits or licenses for dogs, cats, dangerous dogs or animals, exotic animals, kennels, pet shops, ranches or farms, dog shows, obedience trials, and circuses.
B. Notice of Scheduled Meetings. National City shall notify City at least seventy-two (72) hours in advance of any animal-related issues, which are anticipated to be scheduled on an agenda for the City Council or any legislative or administrative body of National City when City employees will be required to appear.
C. Police Services. National City shall provide all required police services within National City, including providing police backup upon request of a City Animal Control Officer. Nothing in this Agreement shall impose a duty on the City or City’s Animal Control Officers to provide any services within the boundaries of the City of National City.
5 City of Chula Vista Agreement No.: 2024-2501
Animal Control Services: CITY OF NATIONAL CITY
D. Legal Representation. Notwithstanding any contrary provision in this Agreement, National City will provide legal representation at its sole cost and expense in cases of public nuisance, dangerous and potentially dangerous animal cases, and for lawsuits, claims, or litigation pertaining to those cases which are based upon or arise from the actions of National City including its Animal Regulation officers and employees.
5. FEES
5.1. Fees Charged to National City Residents. National City residents shall be required to pay fees for certain services provided for Animal Care by the City.
A. Relinquishment, Redemption, and Services. Fees for relinquishment, redemption, and other services provided will be charged in accordance with City's master fee schedule unless otherwise agreed to separately in writing with National City.
5.2. Fee Updates. Periodically, City may update fees to account for increased costs. As new fees are adopted, for the purpose of this Agreement, such fees shall replace existing fees.
6. INDEMNIFICATION
6.1. National City Duty to Indemnify City. National City shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers, employees, agents, and volunteers, from and against any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons in any manner arising out of, related to, or in connection with the destruction of any animal delivered to and accepted by the Animal Care Facility from National City residents. In addition, this indemnity provision shall cover any alleged acts, omissions, negligence, or willful misconduct of National City, its officials, officers, employees, agents, and volunteers. This indemnity provision, however, does not include any claims, damages, liability, costs and expenses (including without limitations, attorney’s fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees, agents, and volunteers.
6.2. City duty to Indemnify National City. City shall indemnify and hold National City, its elected officials, employees, officers, agents and representatives harmless for any liability, including but not limited to claims asserted or costs, losses, attorney fees, or payments for injury to any person or property caused or claimed to be caused by the acts or omissions of the City, or its employees, agents, and officers, arising out of any services performed under this Agreement. City's duty to defend and indemnify shall not extend to any claims or liabilities arising from the sole negligence or sole willful misconduct of National City, its agents, officers or employees.
6.3 Costs of Defense and Award. Included in the obligations in Sections 6.1 and 6.2, above, is the Indemnitor's obligation to defend, at Indemnitor's own cost, expense and risk, any and all aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the Indemnitee, its directors, officials, officers, employees, agents and/or volunteers. Indemnitor shall pay and satisfy any judgment, award or decree that may be rendered against Indemnitee, its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expense and cost incurred by each of them in connection therewith.
6 City of Chula Vista Agreement No.: 2024-2501
Animal Control Services: CITY OF NATIONAL CITY
6.4. Obligations Not Limited or Modified. Indemnitor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Indemnitee, its directors, officials, officers, employees, agents, and/or volunteers.
6.5. Enforcement Costs. Indemnitor shall pay any and all costs Indemnitee incurs enforcing the indemnity and defense provisions set forth in Section 6.
6.6 Survival. Indemnitor’s obligations under Section 6 shall survive the termination of this Agreement.
7. FORCE MAJEURE
7.1 Definition. An Event of Force Majeure means an occurrence beyond the control and without the fault or negligence of a Party, including but not limited to unusually severe weather, flood, earthquake, fire, lightning, and other natural catastrophes, acts of God or the public enemy, war, terrorist act, riot, insurrection, civil disturbance or disobedience, strike, labor dispute, road impediments, expropriation or confiscation of facilities, changes of applicable law, laws or orders related to pandemics, such as COVID-19, or sabotage of facilities, so long as such Party makes good faith and reasonable efforts to remedy the delays or failures in performance caused thereby.
7.2 Force Majeure. The Parties shall be excused for any delay or failure to perform its duties and obligations under this Agreement to the extent that such failure or delay is caused by an Event of Force Majeure as set forth in Section 7.1. Delay or failure in performance by a Party which is the result of an Event of Force Majeure set forth in Section 7.1 shall be deemed excused for a period no longer than the delay or failure in performance caused by such Event.
City reserves the right, at its sole discretion, to temporarily suspend, change and resume the type and frequency of services provided to comply with Federal, State, County and City laws or orders in response to an Event of Force Majeure. Examples of changed or limited services include but are not limited to closing the shelter to the public or offering essential services by appointment only, such as identifying a lost pet, and suspending in-person services such as vaccinations, licensing, owner surrenders, microchipping, trap rental, and spayneuter services. Resources and staffing allowing, City will make reasonable efforts to educate the public of service changes through its webpage and social media platforms, as well as to provide services such as adoptions and licensing through its website or by email.
7.3 Notice. Each party shall give written notice to the other party as soon after becoming aware of the delay or failure in performance caused by an Event of Force Majeure as is reasonably possible, but in any event within five (5) working days after the party becomes aware of such delay or failure.
7.4 No Adjustments. No Event of Force Majeure shall be a basis for monetary adjustment to amounts payable under this Agreement.
8. TERMINATION
8.1 Termination for Cause. If, through any cause, either party shall substantially fail to fulfill in a timely and proper manner any obligation under this Agreement, or violate any of its covenants, agreements or conditions, the Party not in breach shall have the right to terminate this Agreement by giving written notification of such termination and specifying the effective date thereof at least five (5) days before termination. If the Agreement is terminated by National City as provided for in this paragraph, City shall be entitled to receive just and equitable compensation for all services performed prior to the effective date of
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such termination, and the payments shall be prorated should the effective date of termination not end on the last day of the month. If the Agreement is terminated by the City as provided for in this paragraph, National City shall be entitled to continue to receive services under this Agreement up until the effective date of such termination.
8.2 Termination for Convenience. Either Party may terminate this Agreement at any time and for any reason, by giving specific written notice of such termination and specifying the effective date thereof at least ninety (90) days before the effective date of such termination. If the Agreement is terminated by National City as provided for in this paragraph, City shall be entitled to receive just and equitable compensation for all services performed prior to the effective date of such termination and the payments shall be prorated if the effective date of termination not be on the last day of the month. If the Agreement is terminated by the City as provided for in this paragraph, National City shall be entitled to continue to receive services under this Agreement up until the effective date of such termination.
9. GENERAL PROVISIONS
9.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. All prior negotiations and agreements are merged into this Agreement.
9.2 Assignment. This Agreement or any right or privilege hereunder shall not be assigned to another by any Party without the express written consent of the other Party. Consent to an assignment shall not be deemed to be consent to any subsequent assignment. Any such assignment without such consent shall be void.
9.3 Authority. The person(s) executing this Agreement for the Parties warrants and represents that they have the authority to execute same on behalf of each Party and to bind each respective Party to its obligations hereunder without any further action or direction from any board, principle or officer thereof.
9.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
9.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All recitals and exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded.
9.6 Good Faith. The Parties promise to use their best efforts to satisfy all conditions to this Agreement and to take all further steps and execute all further documents reasonably necessary to put this Agreement into effect. Both Parties agree to meet and confer in good faith regarding operational matters upon request.
9.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties.
9.8 Drafting Ambiguities. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Agreement, and the decision of whether or not to seek advice of counsel with respect to this Agreement is a decision that is the sole responsibility of each Party. This Agreement shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Agreement.
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9.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing.
9.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such record, including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time.
9.11 Headings. All article headings are for convenience only and shall not affect the interpretation of this Agreement.
9.12 Reference to Sections. Each reference in this Agreement to a section refers, unless otherwise stated, to a section in this Agreement.
9.13 Covenants and Conditions. All provisions of this Agreement expressed as either covenants or conditions on the part of the City or National City shall be deemed to be both covenants and conditions.
9.14 Severability. In the event that any phrase, clause, paragraph, section or other portion of this Agreement shall become illegal, null or void, or against public policy, for any reason, or shall be held by any court of competent jurisdiction to be illegal, null or void, against public policy, or otherwise unenforceable, the remaining portions of this Agreement shall not be affected and shall remain in force and effect to the fullest extent permitted by law.
9.15 Conflicts Between Terms. If an apparent conflict or inconsistency exists between the main body of this Agreement and any exhibits, the exhibit of this Agreement shall control. If a conflict exists between an applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, rule, regulation, order, or code shall control. Varying degrees of stringency among the main body of this Agreement, the exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement.
9.16 Compliance with Law. The Parties shall, at their sole cost and expense, comply with all the requirements of municipal, state, and federal authorities now in effect or which may hereafter be in effect related to this Agreement.
9.17 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement, against either Party, unless a claim has first been presented in writing, filed with and acted upon by the alleged offending Party in accordance with the procedures set forth in its respective Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by each Party in the implementation of same. Upon request by either Party, the Parties shall meet and confer in good faith for the purpose of resolving any dispute over the terms of this Agreement
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9.18 Fees. In the event any action or proceeding shall be instituted in connection with this Agreement, including without limitation the enforcement of any indemnification obligation contained herein, the losing Party shall pay to the prevailing Party a reasonable sum for attorneys' fees and costs incurred in bringing or defending such action or proceeding and/or enforcing any judgment granted.
9.19 Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista.
9.20 Municipal Powers. Nothing contained in this Agreement shall be construed as a limitation upon the powers of the City as a chartered city of the State of California.
9.21 No Waiver. No failure of either Party to insist upon the strict performance by the other Party of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement, shall constitute a waiver of any such breach of such covenant, term or condition. No waiver of any default hereunder shall be implied from any omission to take any action on account of such default. The consent or approval to or of any act requiring consent or approval shall not be deemed to waive or render unnecessary future consent or approval for any subsequent similar acts. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect to any existing or subsequent breach.
9.22 Additional Rights. No rights other than those specifically identified herein shall be implied from this Agreement.
9.23 Cumulative Remedies. All rights, options, and remedies contained in this Agreement shall be construed and held to be cumulative, and no one of them shall be exclusive of the other, and each Party shall have the right to pursue any one or all of such remedies or to seek damages or specific performance in the event of any breach of the terms hereof or to pursue any other remedy or relief which may be provided by law or equity, whether or not stated in this Agreement.
9.24 Independent Contractor. Unless otherwise stated in this Agreement, all persons employed in the performance of services and functions for National City under this Agreement shall be City employees, agents, or contractors thereof. No National City employee shall perform services or functions that City is obligated to provide under this Agreement. All City employees who are employed by City to perform the services pursuant to this Agreement shall be entitled solely to the rights and privileges given to City employees and shall not be entitled, as a result of providing services pursuant to this Agreement, to any additional rights and privileges given to National City employees. National City shall not be liable for the direct payment of any salaries, wages, or the compensation to City personnel, agents, or contractors performing services pursuant to this Agreement, or any liability other than that provided for in this Agreement. Unless specified otherwise, National City shall not be liable for compensation or indemnity to any City employee, agent, or contractor for injury or sickness or any other claims arising out of his or her employment. City is an independent contractor, and no agency relationship, either expressed or implied, is created by the execution of this Agreement. (End of page. Next page is signature page.)
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Animal Control Services: CITY OF NATIONAL CITY
SIGNATURE PAGE
TO
CITY OF CHULA VISTA AGREEMENT
WITH
CITY OF NATIONAL CITY
TO PROVIDE ANIMAL SHELTER SERVICES
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and National City agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date.
CITY OF NATIONAL CITY CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
BEN MARTINEZ MARIA KACHADOORIAN
CITY MANAGER CITY MANAGER
APPROVED AS TO FORM APPROVED AS TO FORM
BY: ________________________________ BY: ________________________________ BARRY J. SCHULTZ MARCO A. VERDUGO
CITY ATTORNEY CITY ATTORNEY
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EXHIBIT A
NOTICES AND ADDITIONAL TERMS
1. Contact People for Contract Administration and Legal Notice:
A. CITY OF CHULA VISTA
City Manager, or designee
276 Fourth Avenue
Chula Vista, CA 91910
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
[email protected]
B. City Manager, and his/her designee
1243 National City Blvd
National City, CA 91950
For Legal Notice Copy to:
City of National City
City Attorney
1243 National City Blvd, National City, CA 91950
619-336-4220
[email protected]
Changes. If the Administrator, designee or address of either party changes, notice of the change shall be sent to the other party. After the receipt of the notice of change, all future notices or demands shall be sent to the new contact for notices indicated by the notice of change.
2. Reserved
3. Term: In accordance with Section 1.1 of this Agreement, the term of this Agreement shall begin July 1, 2024 and end on June 30, 2025, subject to extension as set forth in Section 5 below.
4. Reserved
5. Special Provisions:
☒ Notwithstanding the completion date set forth in Section 3 above, the Parties may extend this Agreement for four (4) additional terms, defined as a one-year increment, for a total Agreement duration of five (5) years. The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the Parties exercise an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 of the Agreement may be increased in accordance with Agreement Section 4.1.B. for each extension. National City shall give written notice to City of its election to exercise the extension at least thirty (30) days prior to the expiration of the term.
RESOLUTION NO. 2024-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE CITY OF
CHULA VISTA FOR ANIMAL SHELTER AND RELATED ADMINISTRATIVE SERVICES FOR NATIONAL CITY IN A NOT-TO-EXCEED AMOUNT OF $499,656 FOR FISCAL YEAR 2025.
WHEREAS, the City of Chula Vista (“Chula Vista”) owns and operates an animal care facility located at 130 Beyer Way in Chula Vista, which provides a full range of animal control services to the citizens of Chula Vista; and
WHEREAS, since 1991, the City of National City (“City”) has entered into previous agreements with Chula Vista where Chula Vista has provided animal shelter and related administrative services to City; and
WHEREAS, based on the satisfactory services previously provided to the City by Chula Vista, City desires to enter into a new one-year agreement with the City of Chula Vista for the continued provision of animal shelter services for the impounding, adoption, redemption, and care and disposition of dogs, cats, and other small animals, effective July 1, 2024 with options to extend the Agreement for four (4) additional one-year terms, for the not-to-exceed amount of $499,656 for Fiscal Year 2025; and
WHEREAS, the pricing for each subsequent fiscal year and contract extensions shall be based on the average of animal intakes from the preceding three (3) calendar years, but the pricing cannot increase or decrease by more than 5% from the prior year.
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 City Manager to execute an agreement with the City of Chula Vista for animal shelter and related administrative services for the City of National City for the not-to-exceed amount of $499,656 for Fiscal Year 2025, effective July 1, 2024 with options to extend for four (4) additional one-year terms. The Agreement is attached to the Agenda Report as Exhibit A.
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.
PASSED and ADOPTED this 19th day of November, 2024.
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Barry J. Schultz, City Attorney
AGENDA REPORT
Department: Engineering & Public Works
Prepared by: Ricardo Rodriguez, Assistant Engineer-Civil Meeting Date: Tuesday, November 19, 2024
Approved by: Benjamin A. Martinez, City Manager
SUBJECT:
Agreement with the Solana Center for Environmental Innovation for Senate Bill (SB) 1383 Compliance Support Services.
RECOMMENDATION:
Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, 1) Authorizing the Mayor to Execute an Agreement with the Solana Center for Environmental Innovation for SB 1383 Compliance Support Services for a Not-to-Exceed Amount of $165,976, and 2) Authorizing the Re-Budgeting of the Appropriation in the Amount of $165,976 in the Trash Rate Stabilization Fund.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
In 2020, the Department of Resources Recycling and Recovery (CalRecycle) adopted regulations to implement the organic waste reduction and edible food recovery targets set forth in SB 1383 Regulations. These SB 1383 Regulations impose certain requirements on local jurisdictions pertaining to the implementation of organic waste recycling programs including, but not limited to, requirements to provide education and outreach and to establish an edible food recovery program for entities that must comply, namely commercial edible food generators.
On April 27, 2022, CalRecycle awarded the City of National City a grant in the amount of $89,461 for the SB 1383 Local Assistance Grant Program. On August 2, 2022, the City Council ratified acceptance of those funds through adoption of Resolution No. 2022-121. The period of performance to deliver the grant objectives was initially set to end on end on May 2, 2024, but was extended to November 1, 2024.
On May 2, 2023, through adoption of Resolution No. 2023-46, the City of National City entered into an agreement with Solana Center for the full grant amount of $89,461 to provide specialized support services for SB 1383 compliance.
The Regional Solid Waste Association (RSWA) is a joint powers authority comprised of the following six (6) regular members: the City of Del Mar, the City of Encinitas, the City of National City, the City of Poway, the City of Solana Beach, and the City of Vista. On October 1, 2020, the RSWA Board of Directors entered into an agreement (RSWA Agreement) with Solana Center to provide services to support compliance with the requirements of SB 1383.
RSWA also executed the following amendments: Amendment No. 1 dated May 26, 2021, Amendment No. 2 dated December 15, 2021, Amendment No. 3 dated April 15, 2022,
Amendment No. 4 dated October 10, 2022, Amendment No. 5 dated June 6, 2023, and Amendment No. 6 dated July 31, 2023. Amendment No. 6 provides updated unit prices for Solana Center’s services.
On November 7, 2023, the City submitted a grant application through the SB 1383 Local Assistance Grant Program. On February 26, 2024, CalRecycle notified the City it had been awarded a grant in the amount of $165,976. The period of performance to deliver the project ends on April 1, 2026. Subsequently, on May 21, 2024, through adoption of Resolution No. 2024-44, the City of National City accepted the grant and established appropriations for use of funds. Since the funds associated with the May 2, 2023 agreement have been expended, the agreement can be terminated and a new agreement is being established with the intention of aligning the scope and contractual requirements with the latest CalRecycle performance period.
Staff recommends entering into an agreement with Solana Center for a new total commitment of $165,976, which is the full amount of the grant that was awarded by CalRecycle for this purpose.
This agreement will allow Solana Center to continue providing the support services needed to develop National City’s Food Recovery Program in Compliance with SB 1383.
FINANCIAL STATEMENT:
Consultant services are fully funded through the CalRecycle grants. As of November 1, 2024, the consultant has expended all $89,461 of the original contract amount per agreement dated May 2, 2023. The new grant award of $165,976 is anticipated to cover all services under the new agreement, which will become effective on November 1, 2024 and terminate on April 1, 2026.
The contract will be accounted for in the Trash Rate Stabilization Fund (#172). While appropriations were originally established in FY 2024 based on the receipt of the grant funds, the timing of this contract award necessitates that they be re-budgeted in FY 2025.
New Contract Amount - $165,976
Revenue Account: Fund Balance in Fund 172
Expenditure Account No. 172-85-31-31600-7299-
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:
The Agenda Report was posted within 72 hours of the meeting date and time in accordance with the Ralph M. Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A - Agreement
Exhibit B - Resolution
Solana Center for Environmental Innovation
AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
SOLANA CENTER FOR ENVIRONMENTAL INNOVATION
THIS AGREEMENT is entered into on this 1
st day of November, 2024 by and between the CITY OF
NATIONAL CITY, a municipal corporation (the “CITY”), and SOLANA CENTER FOR ENVIRONMENTAL INNOVATION, a California nonprofit corporation (the “CONSULTANT”).
R E C I T A L S
WHEREAS, in 2020, the Department of Resources Recycling and Recovery (“CalRecycle”) adopted regulations to implement the organic waste reduction and edible food recovery targets set forth in Senate Bill 1383 (the “SB 1383 Regulations”), which regulations impose certain requirements on local jurisdictions pertaining to the implementation of organic waste recycling programs including, but not limited to, requirements to provide education and outreach and to establish an edible food recovery program.
WHEREAS, on February 26, 2024, CalRecycle awarded CITY a grant under the SB 1383 Local Assistance Grant Program in the amount of $165,976 (the “Grant”).
WHEREAS, on May 21, 2024, the City Council adopted Resolution No. 2024-44 accepting the Grant from CalRecycle in the amount of $165,976 for CITY’s Edible Food Recovery Program.
WHEREAS, CITY is a member of the Regional Solid Waste Association (“RSWA”), a joint powers authority comprised of the CITY and the cities of Del Mar, Encinitas, Poway, Solana Beach, and Vista.
WHEREAS, on October 1, 2020, RSWA entered into an agreement with CONSULTANT to provide services to support compliance with the requirements of SB 1383, which agreement was subsequently amended six times.
WHEREAS, CITY and CONSULTANT previously entered into an agreement on May 2, 2023 for CONSULTANT to provide specialized support services for SB 1383 compliance, utilizing funding from a prior CalRecycle grant.
WHEREAS, the funding from the prior CalRecycle grant has been expended.
WHEREAS, the CITY desires to continue to employ a consultant to provide SB 1383 compliance support services for CITY’s Edible Food Recovery Program utilizing the Grant funds.
WHEREAS, the CITY has determined that the CONSULTANT is uniquely qualified by virtue of its experience, training, education, reputation, and expertise to provide the SB 1383 compliance support services desired by the CITY, and the CONSULTANT is willing to perform such services.
WHEREAS, CITY and CONSULTANT desire to terminate the May 2, 2023 agreement between the parties and replace it with this Agreement.
Solana Center for Environmental Innovation
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS:
1. ENGAGEMENT OF CONSULTANT. The CITY agrees to engage the CONSULTANT to provide SB 1383 compliance support 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 November 1, 2024. The duration of this Agreement is for the period of November 1, 2024 through March 31, 2026. This Agreement may be extended by mutual agreement upon the same terms and conditions for an additional one (1) year term. The Parties may exercise one (1) one-year extension. Any time extension of this Agreement must be approved in writing by the City Manager.
3. SCOPE OF SERVICES. The CONSULTANT will perform services as set forth in the attached Exhibit “A”.
The CONSULTANT shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY.
The CONSULTANT shall appear at meetings specified in Exhibit “A” to keep staff and City Council advised of the progress on the project.
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 doing 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.
4. PROJECT COORDINATION AND SUPERVISION. Director of Public Works / City Engineer 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. Mallika Sen, Environmental Solutions Director, 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 $165,976.00. The compensation for the CONSULTANT’S work shall not exceed the rates set forth in Exhibit “A”. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit “A”, as determined by the CITY. Any requested modification to the rates set forth in Exhibit “A” may be approved in writing by the City Manager, provided that no such modification shall change the not-to-exceed amount set forth in this section.
The CONSULTANT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested.
Solana Center for Environmental Innovation
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 Agreement, 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 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 employees 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, unemployment, 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
Solana Center for Environmental Innovation
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 effect at all times during the 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 perform 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 Agreement, the CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the 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 ensure 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
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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 INFORMATION. The CITY 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) 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 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 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
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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 compensation 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, employees, 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. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence.
B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include 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 occurrence 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
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“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 covering all of CONSULTANT’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.
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 (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
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 CONSULTANT does not keep all insurance 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
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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 30-day’s written notice to the CONSULTANT. During said 30- 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 CONSULTANT 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.
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: Stephen Manganiello
Director of Public Works / City Engineer
Engineering & Public Works Department
City of National City
1243 National City Boulevard
Solana Center for Environmental Innovation
National City, CA 91950-4397
To CONSULTANT:
Jessica Toth
Executive Director
Solana Center for Environmental Innovation
137 N. El Camino Real
Encinitas, CA 92024
Telephone: (760) 436-7986 Ext. 713
Email: [email protected]
Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section.
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 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 require it to disqualify itself from any matter on which it might perform services for the CITY.
If checked, the CONSULTANT shall comply with all of the reporting requirements of the Political Reform Act and the National City 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.
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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 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 agreements, 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
By: ____________________________
Ronald Morrison, Mayor
APPROVED AS TO FORM:
By: ____________________________
Barry J. Schultz
City Attorney
SOLANA CENTER FOR
ENVIRONMENTAL INNOVATION, a
California nonprofit corporation
(Corporation – signatures of two corporate officers required) (Partnership or Sole proprietorship – one signature)
By: ______________________________
Jessica Toth
Executive Director
Solana Center for Environmental Innovation
EXHIBIT"A"
NATIONAL CITY SB1383 PRICING - RSWA AGREEMENT WITH
SOLANA CENTER FOR ENVIRONMENTAL INNOVATION
Task Units Cost per Unit
Task 1: Create & deliver webinars for generators
- Webinars can be offered to individual cities; however, there are cost-saving opportunities for RSWA cities to jointly participate, especially given that workshops will be virtual, not geographically dispersed. - Where the given topic exists in our library already, the cost of new content development will not apply. - Solana Center will develop content, promote, and host interactive webinars to prepare commercial and residential constituents for curbside organics collection. Content of webinar will cover requirements and provide how-to examples for sorting and disposal.
- The delivered format will be one-hour of content and discussion with interactive sharing platforms. - Webinars will be provided with written and audio content in English. Viewers of live and of recorded webinars can access Spanish closed captioning.
- Participating cities will receive a social media toolkit to promote webinars through their own channels. - Recordings will be provided to participating cities and will be available to webinar registrants following the live presentation.
Task 1.1: Webinars
per webinar
(shared by all participating
cities)
$2,000)
Task 1.2: Communication & tracking per city per webinar (for each city individually) $250)
Task 1.3: New webinar content development, only if requested per new topic
(shared by all participating
cities)
$5,000)
Task 1.4: Spanish closed caption, only if requested
per webinar
(shared by all participating
cities)
$1,000)
Task 2: Provide individual technical assistance to businesses - One-on-one technical assistance (TA) consultations will be offered in-person to food generators. Two types of TA are offered – abbreviated and extensive.
- Abbreviated TA ensures that each business receives complete information about gaps in their compliance with resources to become compliant. This TA option provides generalized guidance to businesses to get them started but very limited handholding.
- Extensive TA provides more in-depth guidance that is customized to ensure food recovery programs are established and solutions for disposal are installed.
- Extensive TA consultations include a visual waste assessment, assistance setting up food donation, recommendations for improving organic waste diversion practices, and reporting. - Driving time and mileage will be charged separately as set forth in Task 5.
Task 2.1: In-person technical assistance
(abbreviated TA for any size business) per business $575) Task 2.2: In-person Tier 1 technical assistance per business $1,200) Task 2.3: In-person Tier 2 technical assistance per business $800) Task 2.4: Communication, scheduling, & guidance with businesses hourly $100)
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Task 3: Inspect commercial generators & food recovery agencies - Solana Center will inspect commercial edible food generators and food recovery agencies in-person. - Communication, scheduling, and follow-up guidance with businesses and agencies will be charged on an hourly basis. - The number of inspections will vary by city, according to the number of entities and each city’s preferences. - Driving time and mileage will be charged separately as set forth in Task 5.
Task 3.1: In-person inspections for Tier 1 commercial generators per business $575) Task 3.2: In-person inspections for Tier 2 commercial generators per business $575) Task 3.3: In-person inspections of food recovery agencies per agency $575) Task 3.4: Communication, scheduling, & guidance with businesses hourly $100) Task 4: Implementation assistance for cities, as needed This task may be used upon request by a city.
Assist with SB 1383 implementation tasks:
Examples may include website review, business compliance letter assistance, pre-work set-up for business site visits, EAR support, feedback from other meetings relevant to city (e.g., TAC), additional stakeholder engagement support, and rescue database update. hourly $100)
Task 5: Hard costs
Solana Center will charge each city directly for drive time and mileage expense incurred in conjunction with providing technical assistance and inspections.
Task 5.1: Drive time (@ $75/hour) per trip $75)
Task 5.2: Mileage (@ $0.655/mile or current Federal mileage rate) per trip $0.655) Task 6: Manage SB 1383 support services (RSWA)
- This task includes communicating as needed with RSWA, city staff members, and other stakeholders as needed (up to 3 hours/city each month).
- Additional one-on-one communication with individual cities, above the 3 hours allocated, will be billed to the city under Task 4, subject to written authorization from city.
- Solana Center will provide quarterly updates at RSWA board meetings. - Separate monthly invoices and reports will be provided to each city and to RSWA. - Solana Center will seamlessly manage all aspects of the contracted work. - Cost includes time to monitor program progress, prepare relevant documentation, present findings, and manage schedules. - RSWA will cover the entire cost of this task on behalf of each participating city.
Task 6.1: Stakeholder engagement (RSWA contribution up to $2,700) hourly $100) Task 6.2: Reporting & accounting (RSWA contribution up to $3,150) hourly $100) Task 6.3: Overall RSWA Program Management monthly $550) Additional RSWA Contribution for National City $7,900)
*tasks requested by the City not to exceed $165,976
RESOLUTION NO. 2024 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1)
AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH THE SOLANA CENTER FOR ENVIRONMENTAL INNOVATION FOR SB 1383 COMPLIANCE SUPPORT SERVICES FOR A NOT-TO-EXCEED AMOUNT OF $165,976, AND 2) AUTHORIZING THE REBUDGETING OF THE APPROPRIATION IN THE AMOUNT OF $165,976 IN THE TRASH RATE
STABILIZATION FUND
WHEREAS, in 2020, the Department of Resources Recycling and Recovery (“CalRecycle”) adopted regulations to implement the organic waste reduction and edible food recovery targets set forth in SB 1383, which regulations impose certain requirements on local jurisdictions including, but not limited to, requirements to provide education and outreach and to establish an edible food recovery program; and
WHEREAS, on April 27, 2022, CalRecycle awarded the City of National City (“City”) a grant in the amount of $89,461 to implement programs for compliance with SB 1383 (the “Original Grant”); and
WHEREAS, the performance period for the Original Grant was set to end on May 2, 2024, but was subsequently extended to November 1, 2024; and
WHEREAS, the City is a member of the Regional Solid Waste Association (“RSWA”), a joint powers authority comprised of the City and the cities of Del Mar, Encinitas, Poway, Solana Beach, and Vista; and
WHEREAS, on October 1, 2020, RSWA entered into an agreement with Solana Center for Environmental Innovation (“Solana Center”) to provide services to support compliance with the requirements of SB 1383, which agreement was subsequently amended six times; and WHEREAS, on May 2, 2023, the City Council adopted Resolution No. 2023-46 authorizing entering into an agreement (“Original Agreement”) with Solana Center to provide specialized support services for SB 1383 compliance (the “Services”) for the full Original Grant amount of $89,461; and
WHEREAS, on June 4, 2024, the City Council adopted Resolution No. 2024-54 authorizing a First Amendment to the Original Agreement to extend the agreement by one year to April 30, 2025; and
WHEREAS, on November 7, 2023, the City submitted a grant application for the SB 1383 Local Assistance Grant Program; and
WHEREAS, on February 26, 2024, CalRecycle awarded the City a new grant in the amount of $165,976, with a performance period ending on April 1, 2026 (the “Grant”); and WHEREAS, on May 21, 2024, the City Council adopted Resolution No. 2024-44 accepting the Grant and establishing an appropriation for the use of Grant funds; and WHEREAS, because the performance period for the Original Grant has ended and the funds from the Original Grant have been expended through the Original Agreement, both parties
desire to enter into a new agreement to account for the new funding and performance period under the Grant and align the scope and contractual requirements with the Grant; and WHEREAS, based on the satisfactory services previously provided to the City by Solana Center and their experience, expertise, and reliability providing the Services, City staff recommends executing a new agreement with Solana Center for a not-to exceed amount of $165,976 and re-budgeting the prior appropriation of the Grant to fund the new agreement with Solana Center.
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 an agreement with the Solana Center for Environmental Innovation in the not-to-exceed amount of $165,976 for SB 1383 Compliance Support Services. The Agreement is attached to the Agenda Report as Exhibit A.
Section 2: That the City Council hereby authorizes re-budgeting the appropriation of $165,976 in the Trash Rate Stabilization Fund to fund the new agreement.
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.
PASSED and ADOPTED this 19th day of November, 2024.
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Barry J. Schultz, City Attorney
AGENDA REPORT
Department: Human Resources
Prepared by: Lydia Flores-Hernandez, Human Resources Director Meeting Date: Tuesday, November 19, 2024
Approved by: Benjamin A. Martinez, City Manager
SUBJECT:
Amendments and Additions to the City of National City’s Schedule of Job Classifications and the Management and Confidential Positions Salary Schedule.
RECOMMENDATION:
Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Creating Three (3) New Job Classifications, Revising the Job Descriptions for Six (6) Existing Job Classifications, Approving Two (2) Reclassifications, and amending the National City Confidential and Management Positions Salary Schedules to Reflect the New Job Classifications.” BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
On October 2, 2024, the Civil Service Commission approved the revision of the creation of the Passport Acceptance Agent classification, and on October 30, 2024, approved the revision of six (6) existing job classifications and the creation of two (2) new classifications as shown in Exhibit A to the resolution. The Civil Service Commission also approved the reclassification of Executive Assistant IV position to Management Analyst III and the Information Technology Technician to Senior Information Technology Analyst.
EXPLANATION:
The Civil Service Commission approved Staff’s recommendations to revise the existing job classifications of Deputy Fire Marshal, Management Analysts I/II/III, PIO/Management Analyst III, and Traffic Office Coordinator. Updating job classifications is essential to ensure that roles accurately reflect current responsibilities and skills. As business needs and technology evolve, job functions and expectations often shift, requiring reclassification to align with the actual duties employees perform. This process helps clarify expectations and enhance recruitment by providing a clear picture of the role's requirements. Additionally, updated classifications support employee development by defining career paths and promotional opportunities within the organization, ultimately contributing to higher job satisfaction and retention.
The creation of the Human Resources Analyst I and Supervising Human Resources Analyst classifications is intended to make the Human Resources Department fully operational and capable of meeting its objectives effectively. By adding these roles, we ensure that the department has the appropriate range of skills and expertise needed to handle its full scope of responsibilities. This strategic adjustment addresses current gaps in capacity, supports a balanced workload distribution, and enhances the department’s overall functionality, enabling it to achieve its mission more comprehensively and efficiently.
The Passport Acceptance Agent will serve the City Clerk’s Office in processing the high volume of passport applications accepted through the Office of the City Clerk. The new position of Passport Acceptance Agent was created to streamline and improve the passport issuance
process, ensuring that the public has convenient access to this service. By dedicating a specific individual to process passport applications, the organization would increase efficiency, reduce processing times, and enhance customer service. This position will be funded by the revenue generated through the collection of passport issuance fees. This approach allows the City to meet growing demand without impacting other budget areas, ensuring the role is financially supported by the service it provides.
Lastly, the Civil Service Commission approved the reclassification of the Executive Assistant IV to Management Analyst III and Information Technology Analyst to Senior Information Technology Analyst.
Once classifications are approved by the Civil Service Commission, the City Council is responsible for setting compensation for each of these classifications The new Passport Acceptance Agent classification salary range and steps, as shown in Exhibit B, were set by comparison of the duties and salaries of current equivalent positions within the organization. The Passport Acceptance Agent classification, due to the nature of the position’s responsibilities, would be placed in the Confidential Unit and at a salary range of $3,758.51 – $4,570.37 per month.
The new Human Resources Analyst I and Supervising Human Resources Analyst would be placed in the Management Unit. The Human Resources Analyst I at a salary range of $4,562.91 - $6,943.31 per month and the Supervising Human Resources Analyst at a salary range of $6,186.93 - $9,421.64 per month.
FINANCIAL STATEMENT:
The Passport Acceptance Agent classification will be utilized to hire qualified staff on an hourly basis. The City Clerk’s Office has evaluated the need for additional support. The cost associated with the service is being offset by the fees collected for passport acceptance processing. The Human Resources Analyst I position will be covered by reallocating the current Executive Assistant IV role to Human Resources Analyst I will result in an annualized cost increase of approximately $908.41. The Executive Assistant IV has been vacant since August 2024, as such there will be no impact on the current fiscal year budget. The reclassification of the Information Technology Technician to Senior Information Technology Analyst will result in an annualized cost increase of approximately $29,260.43. The reclassification of the Executive Assistant IV position to Management Analyst III will result in an annualized cost increase of approximately $23,649.28.
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:
The Agenda Report was posted within 72 hours of the meeting date and time in accordance with the Ralph M. Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A - Resolution
Exhibit B – Proposed Job Classifications
Exhibit C – Proposed National City Confidential Employees Salary Schedule Exhibit D – Proposed National City Management Employees Salary Schedule Exhibit E – Proposed Human Resources Organizational Chart
RESOLUTION NO. 2024 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, CREATING THREE (3) NEW JOB CLASSIFICATIONS, REVISING THE JOB DESCRIPTIONS FOR SIX (6) EXISTING JOB CLASSIFICATIONS, APPROVING TWO (2)
RECLASSIFICATIONS, AND AMENDING THE NATIONAL CITY CONFIDENTIAL AND
MANAGEMENT POSITIONS SALARY SCHEDULES TO REFLECT THE NEW JOB
CLASSIFICATIONS
WHEREAS, City staff recommends approving the revision of the job description for the existing Deputy Fire Marshal and Management Analysts I/II/III classifications; and WHEREAS, City staff recommends approving the revision of the job description for the existing PIO/Management Analyst III classification and changing the title to Public Information Officer; and
WHEREAS, City staff recommends approving the revision of the job description for the existing Stop Grant Coordinator classification and changing the title to Traffic Office Coordinator; and
WHEREAS, City staff recommends creating the new classifications of Passport Acceptance Agent, Human Resources Analyst I, and Supervising Human Resources Analyst; and WHEREAS, the Civil Service Commission of the City of National City approved the revision of the six (6) existing classifications and the creation of the three (3) new classifications, all discussed above and as shown in Exhibit B, at their regular meetings on October 2nd and October 30th, 2024; and
WHEREAS, the Civil Service Commission also approved the reclassification of the existing position of Executive Assistant IV position to Management Analyst III and the existing position of Information Technology Technician to Senior Information Technology Analyst; and WHEREAS, City staff recommends setting the Passport Acceptance Agent salary range and steps within the Confidential unit as shown in Exhibit C; and WHEREAS, City staff recommends setting the Human Resources Analyst I and Supervising Human Resources Analyst salary ranges and steps within the Management unit as shown in Exhibit D.
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 revisions to the job descriptions for the positions of Deputy Fire Marshal, Management Analysts I/II/III, Public Information Officer, and Traffic Office Coordinator.
Section 2: That the City Council hereby authorizes the creation of the classifications of Human Resources Analyst I, Supervising Human Resources Analyst, and Passport Acceptance Agent.
Section 3: That the City Council hereby authorizes the reclassification of the existing position of Executive Assistant IV position to Management Analyst III and the existing position of Information Technology Technician to Senior Information Technology Analyst.
Section 4: That the City Council hereby authorizes the amendment to the Confidential Salary Schedule to add the Passport Acceptance Agent classification as shown in Exhibit C.
Section 5: That the City Council hereby authorizes the amendment to the Management Salary Schedule to add the Human Resources Analyst I and Supervising Human Resources Analyst classifications as shown in Exhibit D.
Section 6: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 19th day of November, 2024.
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Barry J. Schultz, City Attorney
DRAFT
DEPUTY FIRE MARSHAL CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved:
DEFINITION
Under general direction of the Division Chief, to perform administrative duties and technical inspection and investigative work in enforcing compliance with laws, codes, ordinances, and regulations pertaining to the prevention and control of fires; and perform related work as required.
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. Any single position may not perform all of these duties and/or may perform similar related tasks not listed here.
Acts as on-call investigator; serves as Acting Fire Marshal in the absence of the Division Chief; interprets and enforces all codes, ordinances, and regulations pertaining to the prevention and control of fire, storage and handling of explosives, flammable liquids, compressed gases, acids, and other combustible and/or hazardous materials which create fire hazards; supervises, trains, and evaluates subordinates; manages complaints and code referrals; conducts plan reviews for code compliance related to new construction and alterations and consults with architects and developers related to fire safety issues; performs fire safety inspections of new construction, new and existing businesses, schools, convalescent homes, residences, hospitals, churches, industrial and commercial buildings, sprinkler systems, and hazardous materials and processes; conducts weed abatement inspections, oversees hazard abatements, oversees cleaning of lots by City contract crews, and completes accompanying paperwork and records; prepares reports of inspections and complaints; issues citations as needed; follows up on complaints to ensure that hazards are eliminated; conducts review and updates of Standard Operating Procedures (SOPs); assists with the management of the Fire Incident Reporting System and related databases; conducts new business inspections; completes daily and monthly activity logs; attends training programs; utilizes personal computers to perform word processing, spreadsheet, and related functions; supervises Fire Inspectors, Reserve Fire Inspectors, and office support staff; and performs other related duties as assigned.
MINIMUM QUALIFICATIONS
Training and Experience: Any combination equivalent to training and experience that could likely provide the required knowledge, skills, and abilities will be qualifying. A typical way to obtain the required knowledge, skills, and abilities would be:
• Associate’s degree in fire science, fire technology or a related field from an accredited college or university, AND five (5) years of experience in fire safety inspections and fire investigations in a municipality fire department, or public safety experience utilizing the California Fire and Building Code or associated codes enforced by the fire and building departments, or closely related experience; OR
Exhibit B
DRAFT
•
• Graduation from high school or successful completion of a GED, AND seven (7) years of experience in fire safety inspections and fire investigations in a municipality fire department, or public safety experience utilizing the California Fire and Building Code or associated codes enforced by the fire and building departments, or closely related experience.
Additional education may not be substituted for the minimum required two (5) years of experience.
Knowledge and Skills in: Firefighting principles and the techniques and equipment employed in fire suppression; federal, state, and local laws, codes, regulations, rules, and ordinances pertaining to fire suppression, prevention, safety, and hazardous materials; training and group instruction; fire prevention and suppression theory; fire investigation methods and techniques, including a knowledge of building inspection work, building material and construction, and principles of combustion.
Ability to: Understand, follow, and implement departmental regulations and procedures; collect, analyze, and evaluate data; prepare reports and recommendations; keep records; communicate effectively with the public and departmental personnel; read, interpret, and make corrections on building plans as they relate to fire code requirements; analyze facilities, apply fire and related codes, and recommend effective fire safety measures; detect and evaluate a wide variety of hazardous conditions and materials related to fire and life safety; prepare and present professional fire safety presentations to civic organizations; supervise, train, and evaluate subordinates; utilize computer applications and information systems related to fire administration.
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS
Possession of a valid California Class C Driver’s License is required at the time of appointment. License must be maintained during the entire term of employment in this job classification. Possession of the following certificates are required at the time of appointment, P.C. 832 Powers of Arrest, CPR/First Aid certification, California State Fire Marshal Certifications as a Fire Inspector level 2, and Public Education Officer.
California State Fire Marshal Certifications as a Fire Investigator and Plans Examiner is preferred and shall be obtained within one (1) year of appointment.
Exhibit B
3 DRAFT
Special Requirements:
• Must be able to successfully complete U.S. Department of State Passport Services Web-Based Training to meet Passport processing requirements within one month of employment.
• Must be a U.S. Citizen or Naturalized Citizen.
1 DRAFT
PASSPORT ACCEPTANCE
AGENT
CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved: September 11,
2024
DEFINITION
To assist the public with the passport application process; provide a broad variety of clerical, secretarial, and administrative support duties; and perform related duties as assigned. Work involves recurring tasks that require following standardized sequential steps, processes, or procedures.
DISTINGUISHING CHARACTERISTICS
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. Any single position may not perform all of these duties and/or may perform similar related tasks not listed here. • Assist clients by accepting, reviewing, and ensuring completeness of passport applications and required documentation.
• Greets customers and instructs/guides them on completing a passport application both in person and by phone.
• Provide courteous, respectful, and efficient customer service. • Determine use of proper forms based on applicant's citizenship, travel plans, and individual circumstances.
• Ability to operate camera; maintain passport photo processing; verify photo meets federal passport regulations and guidelines.
• Ability to administer the passport oath.
• Complete transactions with customers for services; operate a cash drawer to receive accepted forms of payments; balance cash drawers each day; produce daily cashiering reports.
• Provides support duties such as assisting program clientele in person, electronically, and on the telephone; answer telephones, take messages and relay information to others as requested by the supervisor.
• Performs data entry onto transmittal forms.
• Prepares mailing of passport applications, ensure correct postage is applied, coordinate shipping, and tracking of packages.
• Provides routine administrative support; maintains records and files; enters data in computer equipment/software; summarizes data as required for reports; searches specific online sites for factual information as directed. • Ensures timely and accurate processing of passport applications and all passport services.
2 DRAFT
• Certifies that the customer has provided true legal documentation; administers an oath; witness applicant signature; verifies photos on ID and application match with the actual person, executes forms.
• Ensures that the documents are handled and stored securely and the personal information is protected.
• Daily handling of cash and credit cards and reconciling of payments. • Performs related duties and responsibilities as assigned.
MINIMUM QUALIFICATIONS
• Graduation from high school or equivalent education AND one (1) year of clerical and administrative support experience.
• Bilingual preferred
Knowledge and Skills in:
• Principles and practices of customer service and proper phone etiquette • Correct English usage, grammar, spelling, and punctuation; office procedures, methods, and other equipment; operation of computers and other office machines • Knowledge of Microsoft Office
• Basic math skills; basic principles and procedures of cash handling • Reading skills sufficient to understand information and material related to the assignment
• Maintain a high level of security and confidentiality of restricted information • Accurately process payments for services
Ability to:
• Communicate effectively, both orally and in writing
• Learn mandated requirements and procedures for accepting and preparing official, legal documents
• Use computers, telephones, copiers, facsimile machines and other office equipment
• Add, subtract, multiply and divide numbers accurately • Exercise high attention to detail ensuring form completeness • Proficiently complete internet research request
• Understand and follow oral and written direction
• Deal with a variety of individuals from various socioeconomic, ethnic and cultural backgrounds
• Exercise tact and diplomacy in dealing with technical, complex and confidential customer issues and situations
• Establish and maintain effective working relationships with all those encountered during the course of work
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS
Possession of a valid California Class C driver’s.
DRAFT
MANAGEMENT ANALYST I CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved: October 30, 2024
DEFINITION
Under general direction, to perform varying levels of general office and administrative analytical duties; and perform related duties as required.
DISTINGUISHING CHARACTERISTICS
Positions in this class perform routine to complex administrative duties in a department within an assigned division/department.
Positions at this level are distinguished from the Management Analyst Trainee level by the performance of the full range of duties as assigned, working independently, and exercising judgment and initiative; and receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of the work unit.
This class is distinguished from the Management Analyst II/III in that the latter are higher classifications that provide professional-level advanced administrative and technical support, and independent work; and prepare and oversee the preparation of detailed analyses, studies and management reports in an accurate and timely manner; and may provide direct supervision to assigned staff.
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. Any single position may not perform all of these duties and/or may perform similar related tasks not listed here. • Designs and implements research projects for administrative, operational, budgeting, and other functions
• Manages and evaluates departmental computer programs
• Processes data into database and spreadsheets
• Monitors and forecasts departmental budget accounts
• Compiles departmental budget requests
• Analyzes and interprets data and prepares summary reports • Analyzes bills being considered by legislature and other legislative issues • Develops studies on impact of changing legislation on City • Pursues alternative funding opportunities
• Conducts organizational analysis studies
• Coordinates public information activities
• Writes reports, speeches, correspondence, grants, and other text for department director
Exhibit B
DRAFT
Management Analyst I
Class Specification
Page -2-
•
• Represents City in addressing complaints and problems of general public • Researches City Council or department director requests on City policies and procedures
• Attends meetings of City commissions and boards
• Represents the department at meetings
• Coordinates training programs
• Maintains departmental records
• Operates standard office equipment, including personal computers • Assists with general office duties
• May supervise assigned staff on specific projects
MINIMUM QUALIFICATIONS
Training and Experience: A Bachelor’s degree in Public or Business Administration or related field from an accredited college or university; and one (1) year of administrative/analytic experience working with an executive- or management-level position using information technology systems OR an Associate’s degree with an equivalent combination of training, and experience can be substituted for required education on a year for year basis. Depending on departmental assignment, training requirement may be specific to existing equipment and systems. A master’s degree in relevant field may substitute for the experience requirement.
Knowledge and Skills in: Modern administration practices and procedures, including organization, operations, budgeting, and fiscal management; municipal government; principles of public information; techniques of administrative and statistical analysis; principles of cost/benefit analysis; data processing equipment, programs, and techniques; principles of supervision and administration.
Ability to: Communicate effectively, both orally and in writing; supervise the work of others; conduct analyses and administrative research; perform analytical functions to operate a personal computer; develop effective working relations with all levels of staff, elected officials, board members, and the general public.
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS
Possession of a valid California Class C driver’s license or other means that would allow for the ability to commute to meetings, conduct site visits and attend other special events throughout the county.
Exhibit B
DRAFT
MANAGEMENT ANALYST II CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved: October 30, 2024
DEFINITION
This position provides professional-level administrative support, research, analysis, report writing, and project and program management in various departments within the City.
DISTINGUISHING CHARACTERISTICS
This is the advanced journey-level class in the Management Analyst series. This class is distinguished from the Management Analyst III classification in that the latter is the advanced journey-level class with full professional management and full supervisory authority in planning, organizing and directing the full scope of operations within an assigned division/department.
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. Any single position may not perform all of these duties and/or may perform similar related tasks not listed here. • Provides administrative support functions for assigned programs, including budgeting and financial tracking
• Collects, compiles, and analyzes information from various sources on a variety of specialized topics related to programs administered
• Conducts surveys and performs research and statistical analysis on issues as assigned
• Provides information and assistance to the public
• Prepares correspondence, memos, policies and procedures, agreements, grant applications, and other materials
• Assists with the preparation of the annual budgets
• Assists with contract administration
• Represents the City in community and professional meetings • Assists in designing, coordinating, and implementing projects and programs as assigned
• Serves as member, liaison, or staff to boards, commissions, agencies, and various intradepartmental committees as assigned
• Participates or takes a lead role in the development of goals, objectives, policies, and priorities for the department
• Performs other related duties as assigned.
Exhibit B
DRAFT
Class Specification
Management Analyst II
Page -2-
MINIMUM QUALIFICATIONS
Training and Experience: A Bachelor’s degree in Business, Public Administration, or related field from an accredited college or university; and at least two (2) years of experience performing administrative/analytic duties. OR an Associate’s degree with an equivalent combination of training, and experience can be substituted for required education on a year for year basis. Depending on departmental assignment, training requirement may be specific to existing equipment and systems. A master’s degree in a relevant field is highly desirable and may substitute for up to one (1) year of experience.
Knowledge and Skills in:
Principles and techniques of administration, organization, and operation of municipal government and the principles, practices, and methods used in the conduct of municipal government; report preparation, information analysis, and management audit techniques; methods of research and analysis.
Ability to:
Operate software applications such as word processing, spreadsheet, database management, and graphics presentation; work independently to analyze problems and implement solutions; communicate effectively, both orally and in writing; understand and follow oral and written instructions; establish and maintain effective working relations; exercise flexibility and creativity in response to changing needs of the department; research and analyze problems and prepare recommendations on a variety of issues; properly interpret and make decisions in accordance with laws, regulations, and policies; prepare clear and concise oral and written reports, both narrative and statistical
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS
Possession of a valid California Class C driver’s license or other means that would allow for the ability to commute to meetings, conduct site visits and attend other special events throughout the county.
Exhibit B
DRAFT
MANAGEMENT ANALYST III CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved: October 10, 2024
DEFINITION
Under general direction from management staff of the assigned department, to perform professional administrative and analytical functions in data analysis, department planning, budgeting, grants, policy, and operations; compile and prepare reportable statistical reports and correspondence; and perform related work as required.
DISTINGUISHING CHARACTERISTICS
This is the advanced journey-level in the Management Analyst series that may be utilized in various departments. Employees in this class have full professional management and full supervisory authority in planning, organizing, and directing the full scope of operations within an assigned division/department. May oversee and coordinate assigned support staff in functional areas of a department.
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. Any single position may not perform all of these duties and/or may perform similar related tasks not listed here. • Provides assistance to executive-level employees in performing assigned administrative duties
• Recommends direction and oversees data analysis and strategies for facilitating the various requirements of departmental personnel and divisions • Plans, participates, and may direct assigned personnel in projects and programs • May prepare and monitor the budget for the assigned unit • Develops and evaluates departmental policies and procedures • Prepares quarterly and periodic detailed reports of statistics and trends for use by the City department administration in monitoring performance and formulating strategies and plans
• Conducts complex analysis and problem-oriented projects • Researches, analyzes, prepares, and leads detailed and complex grant applications and procurement of alternate funding sources
• Drafts, edits, and prepares staff reports, correspondence, and special studies as assigned
• Makes presentations to City management and Council, outside agencies, and organizations as necessary
• Performs other related duties as assigned.
Exhibit B
DRAFT
Management Analyst III
Class Specification
Page -2-
MINIMUM QUALIFICATIONS
Training and Experience: A Bachelor’s or Master’s degree in Business, Public Administration, Criminal Justice, or related field from an accredited college or university; and at least three (3) years of experience in administrative, operational, and analytical assignments. OR an Associate’s degree with an equivalent combination of training, and experience can be substituted for required education on a year for year basis. Depending on departmental assignment, training requirement may be specific to existing equipment and systems.
Knowledge and Skills in:
Principles and techniques of administration, organization, and operation of municipal government, and the principles, practices, and methods used in the conduct of municipal government; report preparation, information analysis, and management audit techniques; and methods of research and analysis.
Ability to:
Operate software applications such as word processing, spreadsheet, database management, and graphics presentation; work independently to analyze problems and implement solution; communicate effectively, both orally and in writing; understand and follow oral and written instructions; establish and maintain effective working relations; exercise flexibility and creativity in response to changing needs of the department; research and analyze problems and prepare recommendations on a variety of issues; properly interpret and make decisions in accordance with laws, regulations, and policies; prepare clear and concise oral and written reports, both narrative and statistical; work well under time constraint conditions, think independently; supervise employees.
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS
Possession of a valid California Class C driver’s license or other means that would allow for the ability to commute to meetings, conduct site visits and attend other special events throughout the county.
Exhibit B
DRAFT
PUBLIC INFORMATION OFFICER CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved:
DEFINITION
Under direction, to plan, develop, implement and manage Citywide public information, public affairs programs, crisis communications, and activities; to plan and direct the development and formulation of informational, educational, and public information/affairs programs and materials; to advise management regarding the most effective implementation of public information/affairs messages, and to perform related work as assigned.
DISTINGUISHING CHARACTERISTICS
The Public Information Officer position develops, coordinates, and disseminates information to the media and the public; develops and implements communication plans, strategies and campaigns for departments and specific projects and programs; write, edit, and prepare media advisories and releases and news stories for traditional and social media; pitch stories to the media; write and edit web, print and social media material; write internal communications for City employees; disseminate information to the Mayor, City Council, management, community groups and business owners regarding any planned or emergency activities or projects; schedule, coordinate and participate in public outreach efforts such as community meetings and targeted educational outreach programs; act as a resource/liaison with the mass media and other departments and agencies; write speaking points and video scripts; research and respond to media inquiries; advise City staff on complex public information issues and assist in strategic planning efforts; facilitate public meetings; coordinate and manage the work of outside consultants or contractors; and perform other duties as assigned. An incumbent in this class receives direct supervision from the City Manager.
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. This position may not perform all of these duties, and/or may perform similar related tasks not listed here.
• Plan, develop and direct a comprehensive, Citywide public information program that utilizes various forms of media; oversee the distribution of information to the public; represent the City and City officials on designated occasions. • Plan, coordinate, and direct the formulation, execution, and evaluation of informational, educational, and public affairs programs and materials. • Research, recommend, develop and direct the preparation of public information materials, such as newsletters, brochures, pamphlets, booklets, news releases, fact sheets, and video productions.
• Coordinate and direct the dissemination of information for community representatives and various communications media regarding policies, objectives, and activities. • Direct and participate in preparing speeches, radio and television scripts, and audio-visual programs for public presentation.
Exhibit B
DRAFT
Public Information Officer
Class Specification
Page -2-
• Prepare reports, publications, and other documents; write articles for inclusion in local publications.
• Develop and monitor information and messages to be delivered to the public and determine the best venue for distribution.
• Administer and update the City’s social media platforms and pages as assigned. • Supervise the work of subordinate clerical and technical program staff; assist in selecting, training, motivating, and evaluating work; provide or coordinate staff training; work with employees to correct deficiencies.
• Teamwork: Works collaboratively with colleagues to achieve organizational goals; solicits input by genuinely valuing others’ ideas and expertise; is willing to learn from others; places team agenda before personal agenda; supports and acts in accordance with the final group decision.
• Support, coordinate, and implement a citywide Crisis Communication Strategy. • Perform other related duties as assigned.
MINIMUM QUALIFICATIONS
Training and Experience: Bachelor’s Degree in Journalism, Communications, Public Relations, Public Administration, English, or a related field and four (4) years of full-time professionallevel public relations, media relations, journalism, marketing, community relations, or social media experience. Qualifying professional-level experience must include at least ONE of the following:
1. Planning and coordinating the production and dissemination of public relations or public information programs involving audio, visual, print, or social media.
2. Writing, editing, and producing public relations or public information materials for a public agency.
3. Experience with executive-level presentations and memorandums.
Highly Desirable:
• Master’s Degree in Public Administration or a related field from an accredited institution is highly desired.
• Bilingual communication skills.
Knowledge of:
• Principles, practices, procedures, and techniques of public administration and public policy, including those related to government public relations, project management, staff management, and customer service.
• Specialized principles and techniques applicable to news and feature writing for the press, radio, television, informational films, social media platforms, and other outlets. • Methods of writing and laying out advertising copy.
Exhibit B
DRAFT
Public Information Officer
Class Specification
Page -3-
• Policies, objectives, operations, and organizational structures common to City departments, including those using a charter cities model. • Research and analytical methods, techniques, and procedures, including organizational and policy analysis and the development of comprehensive analytical reports. • Graphic arts and printing methods, materials, and terminology. • Correct use of English grammar, spelling, punctuation, and vocabulary. • Basic principles and methods of statistical analysis. • Methods and techniques of analytical project management. • Methods and techniques of organizing work efficiently and meeting deadlines. • • Targeted Crisis Communication techniques and strategies. • Principles and practices of employee supervision and training, including effective motivation and mentoring techniques.
Skill to:
• Effectively utilize modern office equipment, including personal computers and standard business software such as the Microsoft Office Suite.
• Effectively utilize graphic arts tools, including computer software and hardware. • Operate a variety of office equipment, including a calculator, copier, fax machine, computer, and assigned software.
• Gather accurate information through interviews and inquiries. • Safely operate one or more types of vehicles if required by assignments. • Adjust to rapidly shifting priorities and timelines.
• Exercise analytical and critical thinking.
Ability to:
• Apply the principles, practices, methods, and techniques of public administration and management analysis to develop an effective Citywide public information program. • Write clear and interesting news releases, educational and informational material, and radio and television scripts; edit other materials for release. • Understand and interpret the policies, procedures, rules, and regulations of an assigned department to make work decisions requiring skilled judgment. • Coordinate and conduct analytical studies, projects, operations, and functions and make sound policy and procedural recommendations.
• Research, analyze, and evaluate service delivery methods, procedures, and techniques. • Effectively represent the department and/or City in meetings with governmental agencies, community groups, various businesses, professional and regulatory organizations, and individuals.
• Build and foster relationships with local, state, and federal media outlets, including TV, radio, and print, including Spanish media and community-serving outlets. • In collaboration with the City Manager, Department Heads, and our public relations vendors, develops disaster preparedness campaigns that move citizens to action.
Exhibit B
DRAFT
Public Information Officer
Class Specification
Page -4-
• Speak convincingly in public, before groups of individuals, and before the media. • Acts as a City of National City spokesperson and represents the organization at various local, state, and national events, presentations, briefings, conferences, and engagements. • Prepare effective and accurate correspondence and reports. • Administer and update social media platforms.
• Work effectively with sensitive and confidential information in a political environment.
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS
Possession of a valid California Class C driver’s license or other means that would allow for the ability to commute to meetings, conduct site visits and attend other special events throughout the county.
Exhibit B
DRAFT
TRAFFIC OFFICE COORDINATOR CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved:
DEFINITION
Under direction, to perform a variety of specialized and difficult coordinator and clerical duties, which requires knowledge of specialized subject matter related to the Traffic Division and its processes within the City; and perform related duties as required.
DISTINGUISHING CHARACTERISTICS
Positions in this classification are assigned to the Traffic Division. It is distinguished from other coordinator positions in that this classification must have a specific knowledge of vehicle impound procedures, impound hearings, policies and procedures related to the Traffic Division as well as the District Attorney’s Office and the Office of Traffic Safety.
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. This position may not perform all of these duties, and/or may perform similar related tasks not listed here.
Staff the Traffic Division counter in the Police Department to provide assistance to the general public and other government officials and agencies with relevant traffic related business or other issues; type correspondence, forms, reports, requisitions, and other related materials from rough draft, marginal notes, machine recordings, or oral instructions; receive and screen nonemergency calls from the public; maintain calendars and schedules and coordinate meetings; provide information on department programs, policies and procedures, and other information; provide vehicle impound information to the public, lease owners, repossession companies, and insurance companies; process and audit impound reports; prepare notify letters to vehicle owners; answer and route all incoming calls to the Traffic Division concerning impounded vehicles, parking enforcement, traffic collisions, hit and run collisions, or other traffic and vehicle type calls; maintain updated and accurate OTS grant and vehicle impound records; coordinate post-storage impound hearings and, at times, hold traffic hearings to approve or disapprove releases on impounded vehicles; liaison between the police department, the contract tow companies and the finance department; coordinate with Crime Analysis for the quarterly grant report statistics; process all parking citations issued by the police department; have a working knowledge of computer systems in order to conduct records and database checks; maintain confidentiality; other duties as required.
MINIMUM QUALIFICATIONS
Training and Experience: Graduation from high school and preferably three (3) years of clerical experience in the law enforcement field. Supplemental courses or experience in office practices, typing, and skills in frequent contact with the public are highly desirable.
Exhibit B
DRAFT
Traffic Office Coordinator
Class Specification
Page -2-
Knowledge and Skills in:
Modern office practices, procedures, and terminology, letter and report writing, statistical record keeping methods, correct English usage, spelling, and punctuation. Operations of assigned department, basic functions of the organization and municipal government.
Ability to:
Communicate effectively; utilize word processing equipment and computers efficiently, employ independent judgement and make sound decisions in accordance with established procedures; work independently but as part of a team environment, establish and maintain effective working relations with all levels of staff, elected officials, and the general public; provide information to visitors, general public, outside agencies, and staff; ability to review, understand and adhere to policies and procedures; on an overtime basis, be available to work OTS grant events.
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS:
Must possess a valid California driver’s license at time of appointment. Typing speed as appropriate to this position.
Exhibit B
DRAFT
HUMAN RESOURCES ANALYST I CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved:
DEFINITION:
Under general supervision, the Human Resources Analyst I provides and performs a variety of research and analytical activities in support of the City’s Human Resources programs.
DISTINGUISHING CHARACTERISTICS:
This is the journey level position in the professional Human Resources job series. Incumbents perform professional assignments in one or more human resource program areas while contributing to City policies and procedures. As experience is gained, duties are performed with a significant degree of independence under general supervision. Incumbents are expected to perform their responsibilities with initiative and creativity, exercising sound professional judgment and problem-solving skills. Human Resources Analyst I is distinguished from Human Resources Analyst II in that an incumbent in the latter class is responsible for performing more complex assignments.
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. This position may not perform all of these duties, and/or may perform similar related tasks not listed here.
• Meets, engages, and works with department representatives to fulfill recruitment needs for specific classes; implements recruitment strategies and programs; compiles recruitment and retention data and recommends strategies for improvement; assists with screening, testing, and selection processes and ensures that all phases of recruitment comply with City policies, procedures, and rules, and applicable federal, state and local laws, regulations, and guidelines; responds to applicant questions and answers inquiries regarding employment opportunities with the City.
• Conducts position classification studies; develops and analyzes surveys and studies regarding compensation and other human resource management issues; performs analyses on salary or benefit program changes; reviews and implements salary structure and merit adjustments in compliance with City policies and procedures; Attends and provides input at various meetings on classification matters; responds to classification, compensation, and benefits surveys from other organizations. • Prepares and develops analytical loss reports and graphs related to workers’ compensation.
• Reviews invoices for workers’ compensation legal expenses, office expenses, consultant fees, and various insurance programs.
• Analyzes carrier quotes and reviews and interprets agreements to confirm adequate insurance coverage is requested and provided.
Exhibit B
DRAFT
Human Resources Analyst I
Class Specification
Page -2-
• Assists in administering the City's labor relations programs; evaluates changes to bargaining unit memoranda of understanding and recommends any necessary changes to human resources policies and procedures.
• Interprets and explains policies, procedures, rules, and regulations to City management, staff, and the public in assigned areas of responsibility; analyzes proposed legislation and regulations for impacts on City human resources programs, policies, and rules and applies changes as directed.
• Assists in administering City’s equal employment opportunity and Americans with Disabilities Act (ADA) policies and programs; prepares a variety of reports related to equal employment opportunity and ADA; advises departments on job-related hiring interview and other employment practices; generates and compiles statistical reports. • Assists management in administering work direction, guidance, and training to other department staff.
• Performs special research and conducts studies as assigned; drafts a variety of reports, memoranda, and other materials.
• Performs other duties as assigned.
MINIMUM QUALIFICATIONS
Training and Experience: Equivalent to a Bachelor's Degree from an accredited college or university in Business, Public Administration, Human Resources, Psychology, or a closely related field; AND two (2) years of paraprofessional human resources experience in recruitment and selection, benefits, risk management, or employee relations; OR an equivalent combination of education, training, and experience.
Knowledge of:
• Principles, practices, and techniques of public human resources management and/or civil service programs.
• Basic labor relations principles and practices, including contract administration. • Applicable federal, state, and local laws, regulations, and City decisions. • Research methods and data analysis techniques.
• Uses and operations of a computer and standard business software applications. • Principles and practices of sound business communication; correct English usage, including spelling, punctuation, and grammar.
• Customer service principles, practices, and etiquette. • City human resources policies, Civil Service Commission, and department practices and procedures.
Exhibit B
DRAFT
Human Resources Analyst I
Class Specification
Page -3-
Skill in:
• Analyzing problems, evaluating alternatives, and making sound, appropriate recommendations.
• Exercising sound independent judgment and initiative within established guidelines. • Understanding, interpreting, and explaining the application of policies, procedures, rules, and requirements pertaining to assigned areas of responsibility. • Understanding and following written and oral instructions. • Communicating effectively, both orally and in writing. • Preparing clear, concise, and accurate reports, correspondence, and other written materials.
• Exercising tact and diplomacy in dealing with sensitive, complex, and confidential personnel issues and employee situations.
• Organizing and maintaining accurate and complete specialized files and records. • Maintaining confidential information.
• Establishing and maintaining effective working relationships.
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS
Possession of a valid California Class C driver’s license or other means that would allow for the ability to commute to meetings, conduct site visits and attend other special events throughout the county.
Exhibit B
DRAFT
SUPERVISING HUMAN
RESOURCES ANALYST
CITY OF NATIONAL CITY
CLASS SPECIFICATION Approved:
DEFINITION:
Under general direction, the Supervising Human Resources Analyst plans, organizes, supervises, and participates in the work of staff providing a variety of professional and advanced level research and analytical activities in support of the City’s Human Resources management programs.
DISTINGUISHING CHARACTERISTICS:
This is the supervisory level in the professional Human Resources series of jobs. Incumbents are responsible for planning, organizing, and supervising the work of clerical, technical, paraprofessional, and professional Human Resources staff; performing higher level professional assignments in a variety of human resource program areas while developing City policies and procedures and specific techniques and legal requirements related to the City's Human Resources Department. All duties are performed with independence under general direction from the Human Resources Director. Incumbents are required to perform their responsibilities with minimal direction, initiative, and creativity, exercising experienced professional judgment and problem-solving skills.
EXAMPLES OF TYPICAL DUTIES
The following duties and responsibilities are representative of those typically performed by positions assigned to this classification. This position may not perform all of these duties, and/or may perform similar related tasks not listed here.
• Administers, oversees, and monitors the workers compensation program for the City by coordinating and reviewing workers compensation claims, maintaining budget, evaluating claim status, reviewing settlements, and evaluating audits. • Assists in the administration of the labor relations activities, including negotiations, discipline and grievance processes.
• Reviews invoices for workers compensation legal expenses, office expenses, consultant fees, and various insurance programs.
• Develops and coordinates City-wide training programs. • Supervises, trains, and evaluates Human Resources staff in technical and analytical activities and projects in support of the City's functional human resource service areas. • Interprets personnel policies and procedures; respond to request for information and assistance from employees, management, outside agencies and the public. • Evaluates job skill and recruitment needs for specific classes; plans and implements recruitment strategies and programs, including outreach initiatives and new techniques; ensures that all phases of recruitment comply with applicable federal, state and local laws, regulations and guidelines.
Exhibit B
DRAFT
Supervising Human Resources Analyst
Class Specification
Page -2-
• Conducts position classification studies; audits and prepares new or modified job analysis documents and class specifications; recommends the classification of new or modified positions; performs analyses and makes recommendations on salary or benefit program changes; recommends salary range placements and adjustments; attends and gives input at various meetings on classification matters; responds to classification, compensation and benefits surveys from other organizations.
• Prepares and completes insurance renewal applications; analyzes carrier quotes, evaluates risk and makes recommendations accordingly; reviews and interprets agreements to confirm adequate insurance coverage is requested and provided. • Reviews, maintains, and prepares Industrial Disability Retirement recommendations; works with Human Resources Director and City Manager.
• Prepares and develops analytical loss reports and graphs related to workers compensation.
• Coordinates the administering of the City equal employment opportunity and Americans with Disabilities Act (ADA) policies and programs; investigates employee complaints; prepares a variety of reports related to equal employment opportunity and ADA; advises departments on job-related hiring interview and other employment practices; generates and compiles statistical reports.
• Develops, reviews, recommends, and implements City policies, procedures, and specific techniques and legal requirements related to the City’s human resources and loss prevention analysis.
• Performs special research and conducts studies as assigned; drafts a variety of reports, memoranda and other materials.
• Performs other duties as assigned.
MINIMUM QUALIFICATIONS
Training and Experience: Equivalent to a Bachelor's Degree from an accredited college or university in Business, Public Administration, Human Resources, Psychology, or a closely related field; AND five (5) years of professional human resources experience in recruitment and selection, benefits, workers compensation, or employee relations.
Knowledge of:
• Advanced principles, practices, and techniques of public sector human resources management, and risk analysis.
• Basic labor relations principles and practices, including contract administration. • Basic insurance understanding, California Workers' Compensation, and principles of claims administration.
• Applicable federal, state and local laws, regulations and City decisions. • Research methods and data analysis techniques.
• Uses and operations of a computer and standard business software applications.
Exhibit B
DRAFT
Supervising Human Resources Analyst
Class Specification
Page -3-
• Principles and practices of sound business communication; correct English usage, including spelling, punctuation, and grammar.
• Principles and practices of effective management and supervision. • Customer service principles, practices, and etiquette. • City human resources policies, Civil Service Commission and department practices and procedures.
Skill in:
• Analyzing problems, evaluating alternatives, and making sound, appropriate recommendations.
• Exercising sound independent judgment and initiative within established guidelines. • Understanding, interpreting, and explaining the application of policies, procedures, rules, and requirements pertaining to assigned areas of responsibility. • Representing the department effectively in meetings with other departments and union representatives.
• Understanding and following written and oral instructions. • Communicating effectively orally and in writing.
• Preparing clear, concise, and accurate reports, correspondence, and other written materials.
• Exercising tact and diplomacy in dealing with sensitive, complex, and confidential personnel issues and employee situations.
• Organizing and maintaining accurate and complete specialized files and records. • Maintaining confidential information.
• Establishing and maintaining effective working relationships.
LICENSES, CERTIFICATIONS, OR SPECIAL REQUIREMENTS
Possession of a valid California Class C driver’s license or other means that would allow for the ability to commute to meetings, trainings and attend other special events throughout the county.
Exhibit B
CITY OF NATIONAL CITY
CONFIDENTIALSALARYSCHEDULE
EFFECTIVE: NOVEMBER 19, 2024
STEP A STEP B STEP C STEP D STEP E
TITLE Hourly Bi-Weekly Monthly Annual Hourly Bi-Weekly Monthly Annual Hourly Bi-Weekly Monthly Annual Hourly Bi-Weekly Monthly Annual Hourly Bi-Weekly Monthly Annual Confidential Assistant (At-Will) $26.14 $2,091.44 $4,531.45 $54,377.37 $27.45 $2,196.01 $4,758.02 $57,096.28 $28.82 $2,305.81 $4,995.92 $59,951.07 $30.26 $2,421.10 $5,245.73 $62,948.73 $31.78 $2,542.16 $5,508.02 $66,096.27 Executive Assistant I $25.32 $2,025.31 $4,388.18 $52,658.11 $26.58 $2,126.57 $4,607.58 $55,290.92 $27.91 $2,232.90 $4,837.96 $58,055.46 $29.31 $2,344.55 $5,079.85 $60,958.22 $30.77 $2,461.78 $5,333.86 $64,006.29 Executive Assistant II $28.71 $2,296.83 $4,976.48 $59,717.71 $30.15 $2,411.67 $5,225.29 $62,703.46 $31.65 $2,532.25 $5,486.54 $65,838.52 $33.24 $2,658.87 $5,760.88 $69,130.62 $34.90 $2,791.81 $6,048.93 $72,587.15 Executive Assistant III $30.88 $2,470.07 $5,351.83 $64,221.93 $32.42 $2,593.57 $5,619.41 $67,432.89 $34.04 $2,723.25 $5,900.38 $70,804.58 $35.74 $2,859.42 $6,195.42 $74,345.03 $37.53 $3,002.39 $6,505.19 $78,062.25 Executive Assistant IV $32.60 $2,607.69 $5,650.00 $67,800.02 $34.23 $2,738.09 $5,932.52 $71,190.22 $35.94 $2,874.98 $6,229.12 $74,749.48 $37.73 $3,018.73 $6,540.59 $78,487.07 $39.62 $3,169.67 $6,867.61 $82,411.30 Human Resources Technician $21.68 $1,734.70 $3,758.51 $45,102.14 $22.77 $1,821.33 $3,946.21 $47,354.54 $23.91 $1,913.18 $4,145.22 $49,742.62 $25.10 $2,008.16 $4,351.01 $52,212.11 $26.37 $2,109.40 $4,570.37 $54,844.42 Information Technology Analyst $41.57 $3,325.53 $7,205.32 $86,463.79 $43.65 $3,491.82 $7,565.60 $90,787.20 $45.83 $3,666.40 $7,943.88 $95,326.52 $48.12 $3,849.72 $8,341.06 $100,092.76 $50.53 $4,042.21 $8,758.13 $105,097.50 Information Technology Technician $34.05 $2,724.23 $5,902.49 $70,829.89 $35.76 $2,860.44 $6,197.61 $74,371.33 $37.54 $3,003.45 $6,507.48 $78,089.80 $39.42 $3,153.63 $6,832.87 $81,994.40 $41.39 $3,311.31 $7,174.51 $86,094.18 Payroll Technician I $25.22 $2,017.25 $4,370.71 $52,448.52 $26.48 $2,118.11 $4,589.23 $55,070.77 $27.80 $2,224.01 $4,818.69 $57,824.24 $29.19 $2,335.22 $5,059.64 $60,715.73 $30.65 $2,451.96 $5,312.59 $63,751.05 Payroll Technician II $27.74 $2,218.96 $4,807.75 $57,693.02 $29.12 $2,329.91 $5,048.14 $60,577.72 $30.58 $2,446.41 $5,300.55 $63,606.57 $32.11 $2,568.73 $5,565.58 $66,787.01 $33.71 $2,697.17 $5,843.87 $70,126.48 Passport Acceptance Agent $21.68 $1,734.70 $3,758.51 $45,102.14 $22.77 $1,821.33 $3,946.21 $47,354.54 $23.91 $1,913.18 $4,145.22 $49,742.62 $25.10 $2,008.16 $4,351.01 $52,212.11 $26.37 $2,109.40 $4,570.37 $54,844.42 Records Program Specialist $28.71 $2,296.83 $4,976.48 $59,717.71 $30.15 $2,411.67 $5,225.29 $62,703.46 $31.65 $2,532.25 $5,486.54 $65,838.52 $33.24 $2,658.87 $5,760.88 $69,130.62 $34.90 $2,791.81 $6,048.93 $72,587.15 Risk Management Specialist $28.71 $2,296.83 $4,976.48 $59,717.71 $30.15 $2,411.67 $5,225.29 $62,703.46 $31.65 $2,532.25 $5,486.54 $65,838.52 $33.24 $2,658.87 $5,760.88 $69,130.62 $34.90 $2,791.81 $6,048.93 $72,587.15 Senior Information Technology Analyst $45.63 $3,650.10 $7,908.55 $94,902.62 $47.91 $3,832.61 $8,303.98 $99,647.79 $50.30 $4,024.24 $8,719.18 $104,630.18 $52.82 $4,225.45 $9,155.14 $109,861.65 $55.46 $4,436.72 $9,612.88 $115,354.61 3% Increase + Equity Adjustment Effective 01-09-2024
City of National City
Management Positions
Effective November 19, 2024
POSITION TITLE SALARY BAND
(MONTHLY LOW)
SALARY BAND
(MONTHLY HIGH)
SALARY BAND
(ANNUAL LOW)
SALARY BAND
(ANNUAL HIGH)
Assistant Director of Public Works/Engineering $10,270.12 $14,371.12 $123,241.50 $172,453.43 Assistant Director of Community Development $10,270.12 $14,371.12 $123,241.50 $172,453.43 Battalion Chief ² $9,473.85 $12,919.65 $113,686.26 $155,035.76 Budget Manager $7,128.76 $11,844.18 $85,545.13 $142,130.20 Building Official $8,614.10 $12,809.78 $103,369.15 $153,717.41 City Engineer $10,270.12 $14,371.12 $123,241.50 $172,453.43 Community Development Manager $8,443.43 $11,641.65 $101,321.10 $139,699.80 Community Development Specialist III $6,737.75 $10,127.19 $80,853.02 $121,526.27 Community Services Manager $6,520.55 $10,115.75 $78,246.54 $121,389.03 Deputy City Attorney $8,771.94 $12,865.52 $105,263.33 $154,386.24 Deputy City Clerk $6,180.10 $8,575.97 $74,161.24 $102,911.67 Deputy Director of Human Resources $8,613.37 $11,875.97 $103,360.48 $142,511.65 Emergency Manager $8,359.87 $10,162.53 $100,318.40$ $121,950.40 Equipment Maintenance Supervisor $6,177.04 $9,344.01 $74,124.52 $112,128.08 Facilities Maintenance Supervisor $4,769.08 $7,942.48 $57,228.91 $95,309.70 Financial Services Officer $8,686.92 $12,054.63 $104,243.04 $144,655.58 Fire Division Chief ² $11,895.09 $15,345.32 $142,741.05$ $184,143.83 Homelessness Services Coordinator $7,589.11 $10,336.38 $91,069.32 $124,036.56 Housing Programs Manager $7,814.72 $10,936.13 $93,776.60 $131,233.54 Human Resources Analyst I $4,562.91 $6,943.31 $54,754.95 $83,319.71 Human Resources Analyst II $5,185.98 $7,890.85 $62,231.78 $94,690.21 Human Resources Manager $8,613.37 $11,875.97 $103,360.48 $142,511.65 Information Technology Manager $9,557.96 $12,415.86 $114,695.53 $148,990.31 Management Analyst I $4,562.91 $6,943.31 $54,754.95 $83,319.71 Management Analyst II $5,185.98 $7,890.85 $62,231.78 $94,690.21 Management Analyst III $5,803.93 $8,838.38 $69,647.11 $106,060.58 Neighborhood Council Coordinator $5,631.61 $8,575.97 $67,579.31 $102,911.67 Neighborhood Services Manager $4,909.36 $9,998.28 $58,912.38 $119,979.31
City of National City
Management Positions
Effective November 19, 2024
POSITION TITLE SALARY BAND
(MONTHLY LOW)
SALARY BAND
(MONTHLY HIGH)
SALARY BAND
(ANNUAL LOW)
SALARY BAND
(ANNUAL HIGH)
Nutrition Program Manager $5,294.59 $9,575.36 $63,535.09 $114,904.28 Park Superintendent $7,087.44 $10,096.26 $85,049.29 $121,155.18 PIO/Management Analyst III $6,186.93 $9,421.64 $74,243.20 $113,059.64 Planning Manager $8,522.38 $11,197.22 $102,268.55 $134,366.59 Police Captain ¹ $14,898.87 $18,658.25 $178,786.41 $223,898.98 Police Support Services Manager $9,217.79 $10,200.09 $110,613.51 $122,401.13 Principal Civil Engineer $10,177.96 $12,669.86 $122,135.48 $152,038.31 Principal Librarian $7,398.40 $9,474.26 $88,780.81 $113,691.10 Principal Planner $8,492.85 $11,158.41 $101,914.18 $133,900.90 Project Officer $6,343.84 $9,722.42 $76,126.10 $116,669.02 Purchasing Agent $5,870.01 $10,205.95 $70,440.11 $122,471.40 Recreation Superintendent $6,677.93 $9,575.36 $80,135.12 $114,904.28 Risk Manager $6,289.11 $11,567.69 $75,469.30 $138,812.22 Senior Accountant $6,980.62 $8,686.92 $83,767.47 $104,243.04 Special Assistant to the Mayor $4,838.47 $7,656.57 $58,061.67 $91,878.89 Street Maintenance Supervisor $5,610.74 $7,942.48 $67,328.85 $95,309.70 Street & Wastewater Maintenance Superintendent $7,275.51 $10,733.40 $87,306.12 $128,800.85 Supervising Human Resources Analyst $6,186.93 $9,421.64 $74,243.20 $113,059.64 Traffic Engineer $9,934.65 $12,864.71 $119,215.85 $154,376.53 Wastewater Supervisor $6,117.75 $8,187.86 $73,412.99 $98,254.33 ¹ Police Captain receives a $900 Uniform Allowance Annually ² Battalion Chief and Fire Division Chief receives $850 Uniform Allowance Annually
Public Works Police
Community Services Community Development
Fire Finance
Information Technology Library
City Manager City Clerk
Human Resources Analyst II Human Resources Analyst II Human Resources Analyst II (Benefits/Workers Compensation) (Recruitment/Payroll) (Recruitment/Class & Comp) Conchita Waite Lizza Galindo-Rojas Hailey K. Luscher
Human Resources Analyst I Department Responsibilities Department Responsibilities Proposed
Vacant Human Resources Technician
(Keep Vacant through FY 24/25) (Human Resources)
Savings of approximately $187,000 Alexa Chavez
Proposed
Supervising Human Resources Analyst
Lydia Flores-Hernandez Eliminate Position Use funds for HRI Risk Management Specialist
(Risk Management)
Human Resources Manager Maria Elena Amaya
Executive Assistant IV
National City
Human Resources Department
Organizational Chart
As of November 19, 2024
Human Resources Director
AGENDA REPORT
Department: Finance
Prepared by: Bruce Foltz, Director of Finance
Meeting Date: Tuesday, November 19, 2024
Approved by: Benjamin A. Martinez, City Manager
SUBJECT:
Annual Update of Investment Policy, City Council Policy No. 203 RECOMMENDATION:
Adopt a Resolution entitled, “Resolution of the City Council of the City of National City, California, Adopting City Council Policy No. 203, Investments.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
City Council Policy #203, Investments, states, “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.”
After a review of the current policy, a few small adjustments are proposed to align National City’s policy with recent changes in state law, achieve consistent terminology, and update relevant positions. Exhibit A is a redlined version of the policy that reflects all proposed updates. In addition, the updates and the recent legislation are listed below. Section II Scope. CMTA Best Practice recommended change to explicitly exclude pension and retirement funds.
Section VI (A1) Authorized Financial Institutions, Depositories, and Broker/Dealers. CMTA Best Practice to include proof of FINRA certification.
Section VIII (8) Authorized and Suitable Investments. CDIAC Best Practice reflecting compliance is reviewed on a holistic basis, rather than account by account. Section VIII (12) Authorized and Suitable Investments. SB 882 (2023): Distinguished the treatment of private issuers of securitized instruments from the treatment issued by U.S.
Treasury (UST) Government Sponsored Entities (GSEs). Examples of GSEs include the Federal Home Loan Mortgage Corp. (Freddie Mac), Federal National Mortgage Association (Fannie Mae) and Federal Farm Credit Banks Funding Corporation. Glossary. CMTA Best Practice is to exclude terms not utilized in this investment policy, updated definition of Structured note, and added definition of Fiduciary. Throughout. Replaced “Director of Administrative Services” and “Administrative Services Director” with “Director of Finance” to attain consistent terminology for the referenced position.
FINANCIAL STATEMENT:
The proposed policy changes will have no measurable impact on the City’s investment portfolio or returns.
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:
The Agenda Report was posted within 72 hours of the meeting date and time in accordance with the Ralph M. Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A – City Council Policy No. 203 Investments Redline Draft Exhibit B – City Council Policy No. 203 Investments Clean Draft Exhibit C - Resolution
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
AMENDED: August 15, 2023September
17November 19, 2024
ADOPTED: October 23, 1990
TITLE: Investments POLICY #203
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.
CalPERS, OPEB trusts, and the investment of employees’ deferred compensation funds invested pursuant to Government Code Section 53609
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.
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
AMENDED: August 15, 2023September
17November 19, 2024
ADOPTED: October 23, 1990
TITLE: Investments POLICY #203
2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements
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 an overall strategy, investments may be acquired as authorized by law.” B. Indemnification: The Director of Finance 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
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responsibility for the cash management of City funds is hereby delegated to the Administrative Services Director Director of Finance and/or Financial Services Officer.
The Director of Finance 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 Director of Finance 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. Institutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certification.
1.2. Primary government dealers as designated by the Federal Reserve Bank;
2.3. Nationally or state-chartered banks;
4. The Federal Reserve Bank;
3.5. Savings association or federal association (as defined in Section 5102 of the Financial Code); and
4.6. 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
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transactions (and which are not dealing only with the investment adviser) must supply the Director of Finance 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.
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.
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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 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 in rating category “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:
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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.
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 total portfolio is invested in commercial paper and no more than 5% per issuer. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.
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, provided that the fund’s reports allow the Director of Finance 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:
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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 one nationally recognized statistical rating organization; and
d. Holdings of medium-term notes may not exceed 30% of the total portfolio and no more than 5% per issuer.
12. Mortgage pass-through securities, asset-backed securities, and collateralized mortgage obligations from issuers not defined in sections 2 and 3 of the Authorized and Suitable Investments section of this policy, 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 total 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 total portfolio.
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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 total portfolio may be invested in any single issuer. 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.
8. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.
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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
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 Director of Finance 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 shortterm 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:
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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) 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 Finance 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 Finance Director of Administrative Services or designee.
B. Internal Controls: The Director of Finance 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.
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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 Director of Finance Administrative Services Director or designee to the City Council, at an agendized meeting within 45 days of the end of the quarter. 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
C. Annual Policy review: The Investment Policy will be reviewed at least annually within 120 days of the end of the fiscal year 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)
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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)
June 21, 2022 (Resolution No. 2022-107)
August 15, 2023 (Resolution No. 2023-116)
November 19, 2024 (Resolution No. TBD)
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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 Finance or designee
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Appendix II
GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a governmentsponsored 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 National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds.
Asked. The price at which a seller offers to sell a security.
Asset-Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
Average life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
Banker’s acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
Bid. The price at which a buyer offers to buy a security.
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 yield is unrelated to the actual return the investor will earn if the security is held to maturity.
Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for 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” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate or index.
Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as 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.
Fiduciary. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the best interests of their clients.
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.
The investment’s term or remaining maturity is measured from the settlement date to final maturity.
Medium term notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts 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.
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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.
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 issuers 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.
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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. Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices.
Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and “dual index floaters,” which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
Supranational. A 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 threeand 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.
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
ADOPTED: October 23, 1990 AMENDED: November 19, 2024
TITLE: Investments POLICY #203
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.
CalPERS, OPEB trusts, and the investment of employees’ deferred compensation funds invested pursuant to Government Code Section 53609.
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.
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2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements
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 an overall strategy, investments may be acquired as authorized by law.” B. Indemnification: The Director of Finance or City Manager designee hereinafter designated as Financial Services Officer and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the Investment Policy and exercising due diligence, will be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments.
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
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responsibility for the cash management of City funds is hereby delegated to the Director of Finance and/or Financial Services Officer.
The Director of Finance 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 Director of Finance 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. Institutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certification.
2. Primary government dealers as designated by the Federal Reserve Bank;
3. Nationally or state-chartered banks;
4. The Federal Reserve Bank;
5. Savings association or federal association (as defined in Section 5102 of the Financial Code); and
6. Direct issuers of securities eligible for purchase.
B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City.
C All financial institutions which desire to become qualified bidders for investment
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TITLE: Investments POLICY #203
transactions (and which are not dealing only with the investment adviser) must supply the Director of Finance 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.
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.
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TITLE: Investments POLICY #203
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 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 in rating category “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
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
ADOPTED: October 23, 1990 AMENDED: November 19, 2024
TITLE: Investments POLICY #203
“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.
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 total portfolio is invested in commercial paper and no more than 5% per issuer. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.
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, provided that the fund’s reports allow the Director of Finance 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;
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TITLE: Investments POLICY #203
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 one nationally recognized statistical rating organization; and
d. Holdings of medium-term notes may not exceed 30% of the total portfolio and no more than 5% per issuer.
12. Mortgage pass-through securities, asset-backed securities, and collateralized mortgage obligations from issuers not defined in sections 2 and 3 of the Authorized and Suitable Investments section of this policy, 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 total 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 total portfolio.
14. Supranationals, provided that:
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
ADOPTED: October 23, 1990 AMENDED: November 19, 2024
TITLE: Investments POLICY #203
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 total portfolio may be invested in any single issuer. 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.
8. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.
B. Mitigating credit risk in the portfolio
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
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TITLE: Investments POLICY #203
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
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 Director of Finance 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 shortterm 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;
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
ADOPTED: October 23, 1990 AMENDED: November 19, 2024
TITLE: Investments POLICY #203
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) 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 theCity’s investment procedures manual.
XI. PROCEDURES AND INTERNAL CONTROLS
A. Procedures: The Director of Finance 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 Finance or designee.
B. Internal Controls: The Director of Finance 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
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reporting period.
B. Quarterly reports: Quarterly investment reports will be submitted by the Director of Finance or designee to the City Council, at an agendized meeting within 45 days of the end of the quarter. 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
C. Annual Policy review: The Investment Policy will be reviewed at least annually within 120 days of the end of the fiscal year 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)
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TITLE: Investments POLICY #203
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)
June 21, 2022 (Resolution No. 2022-107)
August 15, 2023 (Resolution No. 2023-116)
November 19, 2024 (Resolution No. TBD)
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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 Finance or designee
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Appendix II
GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a governmentsponsored 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 National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds.
Asked. The price at which a seller offers to sell a security.
Asset-Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
Average life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
Banker’s acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
Bid. The price at which a buyer offers to buy a security.
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
CITY COUNCIL POLICY
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TITLE: Investments POLICY #203
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 yield is unrelated to the actual return the investor will earn if the security is held to maturity.
Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.
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.
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 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.
Fiduciary. A person or organization that acts on behalf of another person(s) or organization
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TITLE: Investments POLICY #203
that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the best interests of their clients.
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.
The investment’s term or remaining maturity is measured from the settlement date to final maturity.
Medium term notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts 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.
Municipal Securities. Securities issued by state and local agencies to finance capital and operating expenses.
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
ADOPTED: October 23, 1990 AMENDED: November 19, 2024
TITLE: Investments POLICY #203
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 issuers 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. Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded
CITY COUNCIL POLICY
CITY OF NATIONAL CITY
ADOPTED: October 23, 1990 AMENDED: November 19, 2024
TITLE: Investments POLICY #203
options and shifts in the shape of the yield curve.
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 threeand 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.
RESOLUTION NO. 2024 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, ADOPTING CITY COUNCIL POLICY No. 203, “INVESTMENTS,” AS AMENDED WHEREAS, City Council Policy No. 203, “Investments” states, “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.”; and
WHEREAS, after a review of the current policy, a few small adjustments are proposed to align the National City policy with recent changes in state law; and WHEREAS, the amended policy makes no significant changes to the City of National City investment goals, authorized investment instruments, or risk management.
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 adoption of City Council Policy No. 203, titled “Investments” as provided with report.
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.
PASSED and ADOPTED this 19th day of November, 2024.
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Barry J. Schultz, City Attorney
AGENDA REPORT
Department: Engineering & Public Works Department
Prepared by: Tirza Gonzales, Operations Manager
Meeting Date: Tuesday, November 19, 2024
Approved by: Benjamin A. Martinez, City Manager
SUBJECT:
Approval of a Construction and Maintenance Agreement with San Diego Metropolitan Transit System to allow National City to Use a Portion of the 8th Street Transit Center Parking Lot for the Construction and Use of a Covered Storage Area with Solar Charging RECOMMENDATION:
Adopt a Resolution Entitled, “Resolution of the City Council of the City National City, California, Authorizing the Mayor to Execute a Construction and Maintenance Agreement with San Diego Metropolitan Transit System for Use of a Portion of the 8th Street Transit Center Lot for Construction and Operations Related to the Free Ride Around National City Neighborhood Electric Vehicle Shuttle Program.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
The Clean Mobility Options (CMO) Voucher Pilot Program is an initiative of the California Air Resources Board funded by the California Climate Investment Program. Its primary goal is to provide funding for zero-emission shared mobility options to underserved communities in California.
On August 3, 2021, the City Council adopted Resolution No. 2021-104 authorizing the City’s participation in the CMO Voucher Pilot Program from the California Air Resources Board for the Free Ride Around National City (FRANC) Neighborhood Electric Vehicle (NEV) Shuttle Program (the “FRANC”).
On December 6, 2022, the City Council adopted Resolution No. 2022-196 thereby appropriating $999,996 from the CMO Voucher Pilot Program for the FRANC, which is intended to provide first and last mile connections for the trolley station as well as connections to other origins and destinations in Downtown and Westside National City.
On June 20, 2023, the City Council adopted Resolution No. 2023-83 awarding an agreement with Circuit Transit, Inc. to provide the FRANC, and Resolution No. 2023-89 authorizing an appropriation in the amount of $400,000 for funding from the San Diego Port District for the FRANC program.
The City of National City submitted a grant request in late 2023 for a Mobility Hub and program at the 8th Street Trolley Station and was notified in Spring of 2024 of the intent to award along with 19 other projects in California.
The CMO Voucher Pilot Program provided funding for both a service operation and a capital improvement component. In addition to the FRANC shuttle, which began operating as of September 2023, the funded scope also includes constructing a storage facility that provides the ability to securely store and charge the NEV shuttles. This facility is known as the 8 th St. Mobility
Hub for the FRANC NEV Shuttle Project, CIP No. 22-25, and will consist of a fenced-in area where the NEVs can be locked and plug into an electric vehicle charger overnight, which will be powered by solar panels. This will be constructed at the 8th Street Transit Center Parking Lot, which is managed and controlled by MTS through a lease from Naval Base San Diego.
On March 19, 2024, City Council adopted Resolution 2024-16 which authorized the execution of a Railroad Right-of-Way License Agreement (License Agreement) and a Right of Entry Permit with MTS for the purpose of using a portion of the 8th Street Transit Center Lot for the construction and use of a solar powered storage area for the FRANC shuttle operation.
On April 3, 2024, the project was advertised and one bid was received by the May 30, 2024 deadline. Subsequent to the bid opening, MTS determined that the License Agreement provided to the City was the wrong agreement template and, instead a Construction and Maintenance Agreement (CMA) that includes a license and access rights was the appropriate agreement for the uses contemplated. Therefore, the previous railroad right-of-way license and right of entry permit approved by the City Council on March 19, 2024 is not applicable and was not executed by MTS.
Since the low bidder was unwilling to maintain their bid until such time as a CMA could be finalized and executed between the City and MTS, the City could not proceed with awarding the contract.
After agreeing to terms with MTS on the CMA, staff re-advertised the project on September 24, 2024, and three bids were received by the October 17, 2024 deadline. Concurrently with this agenda report, the construction contract award for the 8th St. Mobility Hub for the FRANC NEV Shuttle Project, CIP No. 22-25, is included as an item for consideration and approval on the November 19, 2024 City Council Agenda.
The proposed CMA allows the rights granted at no cost to the City and is for an indefinite term.
The City has the right to terminate the CMA by providing 120 days’ notice to MTS, which would subsequently require removal of the improvements. The proposed CMA includes the attached exhibits that form part of the License:
Exhibit A – City’s 8th Street Mobility HUB Construction Plan Sheet LC-1.0. Exhibit B – Site Area of proposed FRANC vehicle storage area and the construction staging area.
Exhibit C – Rendering of the proposed storage area with solar roof for vehicle charging. Exhibit D – Right-of-Way USA Easement from the Federal Government (Navy) to MTS. Exhibit E - USA Approval from the Federal Government for City’s use. Exhibit F – Sample MTS Right of Entry Permit for the construction of the vehicle storage and use.
FINANCIAL STATEMENT:
Execution of this CMA does not have any direct costs to the City.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Transportation Choices and Infrastructure
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 – Construction and Maintenance Agreement with Exhibits Exhibit B – Resolution
MTS Doc. No. S200-25-868
CONSTRUCTION AND MAINTENANCE AGREEMENT
THIS CONSTRUCTION AND MAINTENANCE AGREEMENT (“CMA”) is
made and entered into this ______ day of ___________, 2024, by and between the SAN DIEGO METROPOLITAN TRANSIT SYSTEM (“MTS”) and CITY OF NATIONAL CITY, a California municipal corporation (“CITY”) (collectively the “Parties”).
RECITALS
WHEREAS, MTS is a public transit agency established pursuant to California Public Utilities Code Section 120000, et seq that operates the Blue Line Trolley, a light rail public transit service with stations located at 8th Street and 24th Street in the CITY.
WHEREAS, CITY proposes to operate a “first/last-mile” electric shuttle service called Free Ride Around National City (“FRANC”) within a specified service area that includes the 8th Street Trolley Station and the 24th Street Trolley Station, through a contract between CITY and Circuit Transit Inc.
WHEREAS, CITY desires to establish a mobility hub for the FRANC service at the 8th Street Trolley Station, which would include a designated shuttle stop (as shown in Exhibit A) and an exclusive area for secure storage and charging of up to three (3) electric shuttles in the FRANC fleet (as shown in Exhibits A, B and C) (collectively the “Project”).
WHEREAS, the Parties agree that CITY will construct, operate, and maintain the Project and CITY will reimburse MTS for all eligible costs according to the terms and conditions set forth below.
NOW, THEREFORE, IT IS AGREED:
1. CITY Project.
(a) License. MTS agrees to grant to CITY, at no cost to CITY, the right to use a certain portion of the 8th Street Trolley Station in the City of National City, County of San Diego, described in Exhibits A, B, and C, solely for the purpose of constructing, maintaining and operating the Project, in strict accordance with the provisions of this CMA:
FRANC Shuttle Drop-Off Area – Location designated on Exhibit A as “NEV SHUTTLE DROP-OFF AREA”. This location shall solely be used by CITY for the purpose of dropping off and picking up passengers at the 8th Street Trolley Station, including the installation of a bench.
FRANC Shuttle Secure Storage and Charging Area – Location designated on Exhibit A as “NEV SHUTTLE PARKING ENCLOSURE AREA” and further depicted on Exhibits B and C.
This location shall solely be used by CITY for the purpose of storing and charging up to three (3) FRANC electric shuttles, as well as incidental operations and activities including, but not limited to, cleaning of shuttles, minor maintenance, and related activities of FRANC or CITY personnel.
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No other operations related to the FRANC service or other CITY purpose shall be conducted from this area without MTS’s express, written permission. The Parties acknowledge that CITY’s storage and charging area shall include photovoltaic panels and electrical service from San Diego Gas & Electric under CITY’s account, with any charges or credits therefrom accruing to CITY.
This access right is granted subject to any and all prior, continuing, and future rights and obligations of MTS (including its licensees, successors and assigns) to use the 8th Street Trolley Station for transit purposes and other consistent uses, including, but not limited to, existing and future transportation activities, utilities, communication systems, pipeline facilities and appurtenances in, upon, over, across and along the 8th Street Trolley Station, and there is expressly reserved unto MTS, and its respective successors and assigns, the right (consistent with the rights herein granted) to construct, reconstruct, maintain, operate, and use any and all existing and future facilities and appurtenances related to the above-referenced uses.
For purposes of the license granted by this CMA, CITY shall include parties contracted by the CITY for and related to operation of the FRANC (currently, Circuit Transit Inc.). (b) No Cost to MTS; Cost Reimbursement. The Parties agree that CITY will construct and maintain the Project at no cost to MTS. CITY agrees to reimburse MTS for all consultant and other direct expenses incurred by MTS as a result of reviewing, approving and overseeing CITY’s construction and maintenance of the Project. To the extent feasible, MTS will provide CITY with an estimate of such costs in advance and provide CITY with an opportunity to meet and confer with MTS on the need and reasonableness of such expenses. (c) No Obligation of MTS to Provide Administrative or Operational Support to Project. The Parties agree that nothing in this CMA requires or obligates MTS to provide security, customer service, janitorial, vehicle operators, maintenance, technology, or other services or assistance that are necessary for CITY to operate and maintain the Project. Use of the 8th Street Trolley Station by CITY shall be at CITY’s own risk of loss and damage. MTS shall have no obligation to modify or adjust its own operations or personnel assigned to the 8th Street Trolley Station to support CITY or the Project.
2. Use. If CITY shall use the Project and/or 8th Street Trolley Station for any purpose other than as approved by MTS, or fail to act in accordance with the provisions of this CMA, or act in a manner which interferes with the use of the 8th Street Trolley Station by MTS (including its licensees, successors and assigns), then MTS (or its successors and assigns) shall provide CITY with a timely written notice of any claim of default, meet and confer with CITY regarding the claim of default, and allow CITY a reasonable opportunity to cure the default so long as CITY proceeds expeditiously to cure the default. If CITY fails to cure the default in a timely manner, MTS may exercise its remedies at law or equity against CITY, including barring CITY or the public from using the 8th Street Trolley Station until the default is cured pursuant to Section 11(a) below. It is expressly understood and agreed by MTS and CITY that CITY shall use the Project without causing interference or damage to parking lot, landscaping, trolley station, catenary wires, pipelines, electric lines, telephone lines, telegraph lines, communications systems and other facilities of like character, existing or constructed during the term of this CMA over, under, along and across the Project and/or 8th Street Trolley Station. CITY hereby agrees that it will indemnify
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and save harmless MTS from and against any and all liability for any such interference or damage by the CITY or its contractors or agents as more expressly set forth below in Section 8.
3. Conditions and Limitations.
(a) Conditions and Limitations on Use.
(i) CITY shall comply with all applicable terms, conditions, directives and requirements of MTS’s policies regarding rights-of-way and other MTS ordinances, rules and regulations. CITY shall comply with all applicable laws and regulations of the federal, state, county, local governments and all administrative agencies thereof which may have jurisdiction over CITY’s construction, maintenance and operation of the Project.
(ii) No use, construction, or maintenance by CITY or on CITY’s behalf on the Project will interfere with any type of transit operations at the 8th Street Trolley Station.
(iii) Except as authorized in Section 1(a), CITY shall not leave any personal property or equipment on the 8th Street Trolley Station unattended at any time unless approved by MTS.
(b) Limitations on Access. The permission to be granted by MTS to CITY is without warranty of title of any kind, expressed or implied, and is subject to and subordinate to all prior licenses, leases, easements, restrictions, reservations, conditions, covenants, encumbrances, rights-of-way, liens and claims of title which may in any manner encumber the 8th Street Trolley Station. MTS is only required to seek resolution of any violations of this CMA from CITY. Under no circumstances shall the granting of the rights under this CMA be construed as creating any obligations or duties by MTS to the public, CITY, or any other individual or entity as it relates to the Project or MTS’s 8th Street Trolley Station.
(i) CITY expressly acknowledges that MTS’s right to use and operate the 8th Street Trolley Station is pursuant to a right-of-way easement granted to MTS by the United States of America (“USA”) in document number 2013-07336968 recorded at the San Diego County Recorder’s Office on December 23, 2013 attached to this Agreement as Exhibit D (the “USA Easement”). CITY’s Project is considered a transit use consistent with the USA Easement and was approved by the USA via letter dated January 26, 2024, subject to the plans approved by them. (Exhibit E)
4. Maintenance of Project. CITY shall maintain at its expense the Project and appurtenances constructed pursuant to the terms of this CMA and which are over, under, along and across the 8th Street Trolley Station. Except as it relates to routine day-to-day maintenance such as sweeping, trash collection, or power washing under Section 6, in performing its maintenance obligations in accordance with this Section 4, the CITY and/or its contractors, agents and assigns shall notify MTS 72 hours prior to any entry onto the 8th Street Trolley Station for any
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purpose (except for emergency maintenance and repairs, in which case CITY shall notify MTS as soon as is possible under the circumstances) and will comply with MTS’s rules and regulations concerning use of and work within the 8th Street Trolley Station, and the instructions of MTS’s representatives in relation to the proper manner of protecting MTS’s parking lot, landscaping, trolley station, tracks and traffic moving thereon, pole lines, signals, and other property of MTS, or its tenants or licensees, at or in the vicinity of any maintenance work, and shall perform such work at such times as shall not endanger or interfere with safe and timely operation of MTS’s track and other facilities. All of CITY’s maintenance and operational activities pursuant to this CMA shall comply with applicable local, state, and federal laws and regulations, including but not limited to building codes, environmental health & safety rules and regulations, and stormwater best maintenance practices.
5. Construction Right of Entry Permit. The exercise of any and all rights provided by this CMA is subject to the requirement that the CITY and/or its contractors and agents first obtain a Right of Entry Permit (“ROE Permit”), in substantially the same format as Exhibit F or MTS’s then current ROE Permit form, from MTS prior to entry onto the 8th Street Trolley Station for the construction or maintenance of the Project. The ROE Permit requires that the CITY and/or its contractors and agents procure and maintain in force at all times during the construction contract, the insurance described in this CMA. MTS shall timely process any applications required to obtain the ROE Permit and shall not unreasonably deny or delay the issuance of such ROE Permit. The CITY and/or its contractors and agents will comply with all MTS policies, rules and regulations as stated in the ROE Permit, and the instructions of MTS’s representatives in relation to the proper manner of protecting the parking lot, landscaping, trolley station, railroad tracks and traffic moving thereon, catenary lines, pull lines, signals and other property of MTS or their respective tenants or licensees, during the period of construction of the Project and shall perform the work at such times and in such a manner so as not to endanger or interfere with the safe and timely operation of the 8th Street Trolley Station and other facilities.
6. Maintenance ROE Permit. Notwithstanding the foregoing, MTS hereby grants to CITY a Durable Maintenance ROE Permit to allow CITY to enter onto the Project area for routine maintenance of the Project, including, but not limited to, activities such as trash removal, minor repairs, and similar maintenance activities. The Durable Maintenance ROE Permit shall remain effective throughout the life of this CMA and be subject to all of the terms of this CMA, including but not limited to the indemnity and insurance provisions. Entry onto the 8th Street Trolley Station by individuals or entities other than the CITY (such as contractors, agents, and non-CITY employees) or entry onto the 8th Street Trolley Station by CITY for work outside of the Project area, shall require a separate ROE Permit as specified in Section 5.
7. Notice. The exercise of any and all rights provided to CITY by this CMA is also subject to the notice requirements set forth in the ROE Permits for the construction and maintenance of the Project, prior to entry onto the 8th Street Trolley Station for any purpose.
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8. Indemnification.
(a) CITY
Without limiting its right to defense and indemnity from MTS arising under Section 8(b), CITY agrees to indemnify, defend and hold harmless MTS, its Board, officers, directors, agents, and employees, the San Diego and Imperial Valley Railroad (“SD&IV”), San Diego & Arizona Eastern Railway (“SD&AE”), San Diego Trolley, Inc. (“SDTI”), San Diego Transit Corporation (“SDTC”), the USA, their officers, directors, agents and employees (“MTS Indemnitees”), from any and all liability, loss, expense (including reasonable attorneys’ fees and other defense costs), demands, suits, liens, damages, costs, claims, including, but not limited to, third party claims, claims for bodily injury, death, personal injury, or property damage, that are incurred by or asserted against the MTS Indemnitees arising out of or connected with (i) the Project, (ii) this CMA, (iii) the maintenance of any device or appurtenance implemented under this CMA, or (iv) any negligent acts or omissions or willful misconduct on the part of the CITY, its City Council members, officers, agents, contractors, employees, or invitees. The requirements as to the types and limits of the insurance coverage to be maintained by the CITY as required by Section 9, and any approval of the insurance by MTS, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by CITY pursuant to this CMA, including but not limited to, the provisions concerning indemnification. CITY shall not be held liable nor have indemnification obligations where related to the negligence or willful misconduct by MTS Indemnitees. (b) MTS
Without limiting its right to defense and indemnity from CITY arising under Section 8(a), MTS agrees to indemnify, defend and hold harmless the CITY and its City Council members, officers, agents, volunteers, contractors, and employees (“CITY Indemnitees”), from any and all liability, loss, expense (including reasonable attorneys’ fees and other defense costs), demands, suits, liens, damages, costs, claims, including but not limited to, claims for bodily injury, death, personal injury, or property damage, that are asserted against the CITY Indemnitees arising out of or connected with any negligent acts or omissions or willful misconduct on the part of MTS, its Board, officers, agents, contractors, or employees, under or in connection with the Project or this CMA. MTS shall have no obligation to indemnify any invitee of CITY. (c) Concurrent Negligence
In the event of any acts or omissions of concurrent negligence which results in the filing of a demand, claim, or complaint against the Parties, each party shall defend and represent itself such that each party shall bear its own costs and attorneys’ fees. (d) Limitation of Liability
Neither MTS nor CITY shall be liable for any consequential, indirect, special or punitive damages.
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9. Insurance. The CITY, at its sole cost and expense, shall procure and maintain the following insurance:
(a) General Liability
(i) The CITY shall maintain $5 million of general liability coverage.
Upon request by MTS, the CITY shall provide satisfactory evidence that it meets the insurance requirements of this CMA.
(ii) The coverage described above shall cover bodily injury (including death) and property damage liability, owned and non-owned equipment, and blanket contractual liability.
(iii) All such policies shall name in the endorsement San Diego Metropolitan Transit System, San Diego Trolley, Inc., San Diego and Arizona Eastern Railway Company, San Diego and Imperial Valley Railroad, San Diego Transit Corporation, United States of America, and their directors, officers, agents, and employees as additional insureds as their interests may appear.
(b) Automobile Liability
(i) The CITY shall maintain $2 million of automobile liability coverage. Upon request by MTS, the CITY shall provide
satisfactory evidence that it meets the insurance requirements of this CMA.
(ii) The insurance shall indemnify against loss from liability imposed by law for damages on account of bodily injury, property damage, and personal injury. The automobile coverage shall cover all owned, non-owned and hired automobiles.
(c) Workers Compensation. CITY shall cover or insure under the applicable laws relating to workers’ compensation insurance, all of their employees working on or about the 8th Street Trolley Station all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any Acts amendatory thereof. CITY shall provide employers’ liability insurance in the amount of not less than $2 million per accident for bodily injury and disease. By its signature hereunder, CITY certifies that it is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and it will comply with such provisions in connection with any work performed on the Site. Any persons providing services with or on behalf of the CITY shall be covered by workers’ compensation (or qualified self-insurance.) Except in the case of sole negligence active negligent acts or omissions or sole willful misconduct on the part of MTS, its Board, officers, agents, contractors, or employees, under or in connection with the Project or this