Agenda packet, regular meeting — National City City Council, September 2, 2025 (part 4 of 6)

CHK NO AMOUNT
Warrant Register #52
6/20/2025 to 6/26/2025

PAYEE DESCRIPTION DATE
635.00

13.31 210.22
259.32
(100.00)
1,043.55

66.25 174.99

67.43 357.03
336.00
(150.00)
150.00
300.00
150.00

56.65 20.95
4,263.77
248.97
357.93
250.57
857.47
(1.00)
(1.00)

1.00 1.00
124.99

7.00 299.00
843.05
1,274.04
125.00
430.00
870.00
1,425.00Total for Library

TAQUIZAS LOS CHUCHYS

ALA- INDIVIDUAL ANNUAL MEMBERSHIP DU

ALA- CONFERENCE ATTENDANCE, SEMINA
SQ *TAQUIZAS LOS CHUCHYS- LITERACY E
5/22/2025
5/22/2025
5/22/2025
Total for IT
Library

AMERICAN LIBRARY ASSOCIATION

AMERICAN LIBRARY ASSOCIATION
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025

SYSTOOLSGROUP
ZOOM

VOIDED CITY OF NATIONAL CITY PAYMEN
T

VOIDED CITY OF NATIONAL CITY PAYMENT

CITY OF NATIONAL CITY PAYMENT MODUL

GOOGLE ITRANSLATE APP

LYFT CANCELLATION FEE

SYSTOOLS EMAIL CONVERSION APP

ZOOM MONTHLY SUBSCRIPTION

CITY OF NATIONAL CITY

CITY OF NATIONAL CITY
GOOGLE
LYFT
5/22/2025
5/22/2025
Total for HR
IT
CITY OF NATIONAL CITY 5/22/2025

JERSEY MIKE'S

SMART & FINAL

CIVIL SERVICE COMMISSIONERS HEARING
FINANCIAL WORKSHOP/MAY25
ANTI-HARASSMENT TRAININGS/MAY25
5/22/2025
5/22/2025
Total for Fire
HR
JERSEY MIKE'S 5/22/2025 5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
MEMBERSHIP SDCFPOA PRC#14683 J. ESP

SWA BAGGAGE , MATLOCK BOISE RADIO
T

DINNER , MATLOCK BOISE RADIO TECH CL

DINNER MATLOCK BOISE RADIO TECH CLA
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025

LUNCH SERGIO MORA - CFED CONFEREN
C

HOTEL SERGIO MORA - CFED CONFERENC

SEAT COVERS UNLIMITED

REFUND MEMBERSHIP - SAN DIEGO COUN

MEMBERSHIP - SAN DIEGO COUNTY FIRE
C

TAPHOUSE

REGISTRATION CFED CONFERENCE, MAY

CHEVRON , MATLOCK BOISE RADIO TECH C

LIQUID LAUNDRY PODS AND BLEACH FOR

CAR RENTAL , MATLOCK BOISE RADIO TE
C

PARKING REFUND , MATLOCK BOISE RADIO

HOTEL , MATLOCK BOISE RADIO TECH CLA

LUNCH MEETING - HOSE AND NOZZLE VEN

PITOT GAUGE - TO MEASURE FLOW VELO

SOCAL FPO

SOUTHWEST AIRLINES

STAGECOACH

JERSEY MIKE'S

NEW ENGLAND MANUFACTU

PACIFICA CLIFFHOUSE

RENAISSANCE HOTELS

SEATCOVERSUNLIMITED

CHEVRON

COSTCO WHOLESALE

ENTERPRISE RENT-A-CAR
HOME2 SUITES BY HILTON
HOME2 SUITES BY HILTON

CFEDWEST
10

Page 420 of 737 ends

CHK NO AMOUNT
Warrant Register #52
6/20/2025 to 6/26/2025

PAYEE DESCRIPTION DATE
(413.40)

17.38 29.33

46.91 52.19

59.73 65.22

94.59 145.59
160.92
484.60
(100.00)
1,118.49
575.00

58.95 41.51
792.00

60.00 863.32
923.32
923.32
775.22
427.40
250.00
1,500.00
1,500.00

14.00 50.00
746.80
664.68
468.00
220.40

50.00 600.00

65.00 465.00

28.69 44.00
125.00
640.66
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025

OC SHERIFFS DEPT KATELLA TRAINING T
U

BACKBOARD MATERIAL FOR BAKER TO VE

MEMBERSHIP MONTHLY SUBSCRIPTION FE
SAG TRAINING TRAINING TUITION PRC T34

REGIONAL TRAINING CENT TRAINING TUIT

LAW ENFORCEMENT RECOGNITION AWAR
MS* MAISON140BEVERLYH TRAINING LODG

NLEFIA LLC MEMBERSHIP FOR TRAINING P
NLEFIA LLC TRAINING TUITION FOR PRC T3

OC SHERIFFS DEPT KATELLA TRAINING TU

GRACIE GLOBAL LLC TRAINING TUITION FO

HOMEWOOD SUITES TRAINING LODGING F

HOMEWOOD SUITES TRAINING LODGING D

HOMEWOOD SUITES TRAINING LODGING P

MARRIOTT LONG BEACH TRAINING LODGIN

FAIRFIELD INN & SUITES TRAINING LODGIN

FBI NATIONAL ACADEMY A TRAINING TUITI

CITE DAY FOR PARTICIPATING AGENCIES
FIVEOTRAININGLLC.COM TRAINING TUITI
O

GRACIE GLOBAL LLC TRAINING TUITION FO

LUNCH FOR INTERVIEW PANEL
CORBIN TRAINING TUITION PRC T3382

FAIRFIELD INN & SUITES TRAINING PARKI
N

FAIRFIELD INN & SUITES TRAINING LODGIN

FAIRFIELD INN & SUITES LODGING AND PA
REFUND SMEAD 100% RECYCLED PRESSB

PUREFRESH WET WIPES FLUSHABLE INDIV
LED LIGHTS FOR CHIEF'S 2ND FLOOR ADM

YSAGI LEATHER DESK PROTECTION, OFFIC
CHIEF'S PRIVACY FILTER SCREEN FOR 13"

CHARGER FOR LENOVO LAPTOP
65W USB CTYPE C AC CHARGER COMPATI

INVESTIGATIONS BATTERY BANK / CORPO
30X18 BLACK SHADOW BOX FRAME
PICRIT 11X14 PICTURE FRAME SET OF 12,
SMEAD 100% RECYCLED PRESSBOARD E
N

AYRES SUITES YORBA LIN TRAINING LODG

AYRES HOTEL LAGUNA WOO TRAINING LO

BEHAVIOR ANALYSIS TRAI TRAINING TUITIO
CLEAR TOUCH ANTI-GLARE (2-PACK), LENO

SAG TRAINING

SAN DIEGO REGIONAL P

NLEFIA LLC

OC SHERIFFS DEPT KATELLA

OFFICE DEPOT

PELOTON

HOMEWOOD SUITES

MARRIOTT

MOTHERS AGAINST DRUNK DRI
MS* MAISONBEVERLYH

NLEFIA LLC

FIVE-O TRAINING LLC

GRACIE UNIVERSITY

HOMEWOOD SUITES

FAIRFIELD INN

FBI NATIONAL ACADEMY ASSO

FILIPPI'S PIZZA GROTTO CH

BEHAVIOR ANALYSIS TRAININ

BOXWAVE

CHICK-FIL-A
CORBIN

FAIRFIELD INN
AMAZON.COM
AMAZON.COM
AMAZON.COM

AYRES HOTELS

AYRES HOTELS
AMAZON.COM
AMAZON.COM
AMAZON.COM
AMAZON.COM
AMAZON.COM
Police
AMAZON.COM
AMAZON.COM
AMAZON.COM
11

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CHK NO AMOUNT
Warrant Register #52
6/20/2025 to 6/26/2025

PAYEE DESCRIPTION DATE
643.75
295.00
295.00
295.00
295.00
295.00
550.98
307.46

77.94 44.00

72.50 120.92
714.98

10.85 18,652.20
32,478.14
1,640,115.47GRAND TOTAL
5/22/2025
5/22/2025
Total for Police
P-CARD PAYMENTS Total
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025
5/22/2025

LEGACY WALL
SGT. DEPASCALE FLAG BOX

SALLY PORT DOOR

VACUUM BAGS FOR LINA
SDDIFALLENO TUTION PRC T3428 ADDITIO

SHERATON GARDEN GROVE TRAINING LO
D

LEGACY COMMITTEE

SHOP WITH A COP BBQ

CITE DAY FOR PARTICIPATING AGENCIES

REGIONAL TRAINING CENT TRAINING TUI
T
SDDIFALLENO TUTION PRC T3428 ADDITIO
SDDIFALLENO TUTION PRC T3428 ADDITIO
SDDIFALLENO TUTION PRC T3428 ADDITIO
SDDIFALLENO TUTION PRC T3428 ADDITIO

WAL-MART

SMART & FINAL

STARBUCKS

THE ENGRAVING STORE

TRUDOOR

SDDIFALLENO

SHERATON
SHUTTERFLY, INC.

SAN DIEGO REGIONAL P

SDDIFALLENO

SDDIFALLENO
12

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AGENDA REPORT

Department: Planning
Prepared by: Martin Reeder, AICP – Asst. Director of Community Development Meeting Date: Tuesday, September 2, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Public Hearing - Second Reading and Adoption of an Ordinance Amending Section 8.32.015 of the National City Municipal Code Related to the Keeping of Hen Chickens.

RECOMMENDATION:

Adopt the Ordinance Entitled: “An Ordinance of the City Council of the City of National City, California, Amending Section 8.32.015 ‘Restrictions on Keeping Certain Animals, Birds, and Reptiles’ of the National City Municipal Code Pertaining to the Allowance of Keeping Additional Hen Chickens.”

PRIOR ACTION:

The City Council held a public hearing at their meeting of August 19, 2025 and introduced the Ordinance with the addition of a minor language amendment to allow a minimum of six hen chickens.

EXPLANATION:

The City Council directed staff to prepare an Ordinance related to the keeping of chickens in the City through the Policy 105 process.

Section 8.32.015 of the Municipal Code ( Restrictions on keeping certain animals, birds and reptiles.) currently limits the number of hen chickens as follows:

A. It is unlawful to keep, possess or maintain any animal, bird or reptile not prohibited by Section 8.32.010, except as follows:

The numerical and physical limitations underlined above were incorporated into Chapter 8.32 in 2004, prior to which up to 12 hen1 chickens were permitted on properties zoned for single-family residential use.

1 NCMC 8.32.010 (A) (8) prohibits any rooster (male chicken) regardless of size or whether it has been surgically de -crowed.

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The reason for the revisions proposed at that time were intended to bolster regulations to enhance public health parameters by improving greater restrictions on the keeping of fowl, and minim ize the serious exposure to Newcastle disease, avian flu, and West Nile Virus (WNV). Since that time, the state of California has been declared free of [virulent] Newcastle disease. With regard to avian flu, while there was an outbreak in 2004, there has only been one reported case in 2025 (east county). West Nile Virus is an ongoing concern and can be found in all 58 counties in California, including San Diego County. According to the County’s Vector Control Program data, the last spike in WNV cases was in 2015 and 2016 (367 and 266 respectively). Cases between 2017 and 2024 have ranged between 0 and 43 (average of 8.75 cases annually). Previous spikes were noted in 2005 (162) and 2008 (563).

With the increase in prices related to animal products, including chicken eggs, allowing additional hen chickens would allow residents to offset high egg prices by raising and harvesting chicken eggs at a higher rate than currently permitted. While there may be concerns related to avian- related diseases, those concerns are less of an issue than they were in 2004 when the Ordinance was last amended.

At the May 20, 2025 public hearing, staff was asked to look at other urban cities in the county with regard to their regulations. Staff looked at the cities of San Diego, Chula Vista, Lemon Grove, and La Mesa. Their regulations are summarized as follows:

San Diego: five chickens (outside of all setbacks) / 15 chickens (outside of all required setbacks or 15 feet, whichever is greater) / 25 chickens (minimum of 50 feet from residential structures).

Chula Vista: six chickens, minimum 7,000 square-foot lot size.

Lemon Grove: one chicken per 1,000 square feet of lot area.

La Mesa: no animal/poultry which emits loud or raucous cries.

Based on previous discussion and concerns, staff suggested a minimum of six hen chickens be permitted, with a maximum of one chicken per one thousand feet of lot area, not to exceed 12.

The attached Ordinance reflects this change.

FINANCIAL STATEMENT:

There would no fiscal impact to the City, as changes would not result in the need for additional permits or fees.

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 at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act

ORDINANCE:

Second Reading

EXHIBITS:

Exhibit A – Strikethrough/underline
Exhibit B – Ordinance

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A. It is unlawful to keep, possess or maintain any animal, bird or reptile not prohibited by Section 8.32.010, except as follows:

2. Any combination of the following classes of animals, not to exceed a total of twenty, with each class limited by a maximum of four adult rabbits, four chinchillas, four hen chickens, four turkeys, four ducks, four geese or twenty pigeons may be kept on any property zoned for single -family residential use that is greater than twenty thousand square feet in area . Up to six hen chickens may be kept on any property zoned for single -family residential use. For properties zoned for single-family residential use that are equal to or exceed 7,000 square feet in size, one hen chicken per one thousand square feet of lot area is permitted, but not to exceed twelve hen chickens in total . This number shall contribute to the total allowance of twenty animals.

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ORDINANCE NO. 2025 –

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING SECTION 8.32.015 RELATED TO THE KEEPING OF CERTAIN ANIMALS, BIRDS,

AND REPTILES) OF THE NATIONAL CITY MUNICIPAL CODE

WHEREAS, the City of National City (the “City”), pursuant to the police powers delegated to it by the California Constitution, has the authority to enact or amend laws which promote the public health, safety, and general welfare of its residents; and WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the amendment of the National City Municipal Code; and
WHEREAS, pursuant to published 10 -day notice s of the adoption of said ordinance, public hearings were held by the City Council on May 20, 2025 and August 19, 2025, and at said public hearing s, all persons interested were given the opportunity to appear and be heard before the City Council; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA, DOES ORDAIN AS FOLLOWS:

Section 1. All protests, if any, against said ame ndment to the Munic ipal Code and each of them be and hereby are denied and overruled.

Section 2. Section 8.32.015 A. 2. is hereby amended to read as follows:

8.32.015 - Restrictions on keeping certain animals, birds and reptiles.

A. It is unlawful to keep, possess or maintain any animal, bird or reptile not prohibited by Section 8.32.010, except as follows:

2. Any combination of the following classes of animals, not to exceed a total of twenty, with each class limited by a maximum of four adult rabbits, four chinchillas, four turkeys, four ducks, four geese or twenty pigeons may be kept on any property zoned for single-family residential use that is greater than twenty thousand square feet in area. Up to six hen chickens may be kept on any property zoned for single -family residential use. For properties zoned for single-family residential use that are equal to or exceed 7,000 square feet in size, one hen chicken per one thousand square feet of lot area is permitted, but not to exceed twelve hen chickens in total. This number shall contribute to the total allowance of twenty animals.

Section 3. Severability. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

Section 4. This Ordinance shall take effect and be in force thirty (30) days from the date of its passage, and before the expiration of fifteen (15) days after its passage, it or a

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summary of it, shall be published once, with the names of the members of the City Council voting for and against the same in the Star News, a newspaper of general circulation published in the County of San Diego, California.

INTRODUCED on this 19th day of August, 2025.

PASSED and ADOPTED this 2nd day of September, 2025.
__________________________
Ron Morrison, Mayor

ATTEST:
_____________________________
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
_____________________________
Barry J. Schultz, City Attorney

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AGENDA REPORT

Department: Planning
Prepared by: Martin Reeder, AICP – Acting Director of Community Development Meeting Date: Tuesday, September 2, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Public Hearing - Second Reading and Adoption of an Ordinance Adding Chapter 6.30 (Short - Term Rentals) to the National City Municipal Code.

RECOMMENDATION:

Adopt the Ordinance Entitled, “An Ordinance of the City Council of the City of National City, California, Amending Title 6 (Business and Franchise Taxes) of the National City Municipal Code Adding Chapter 6.30 (Short-Term Rentals).”

PRIOR ACTION:

The City Council held a public hearing at their meeting of August 19, 2025 and introduced the Ordinance with the addition of language amendments limiting the number of short-term rentals to 45 per Council District and requiring criminal background checks for short -term rental license applicants. The attached draft Ordinance incorporates these changes.

EXPLANATION:

At the August 19, 2025 public hearing, the City Council asked staff to include language requiring a criminal background check for short -term rental license applicants. The intent is so that someone who has a criminal record related to prostitution or ot her serious crime be prohibited from operating a short-term rental. As previously mentioned, while the majority of landlords may get criminal background checks from their tenants prior to renting, it is not prevalent in short-term rental ordinances for oth er cities for the permittees themselves to require one. Regardless of a background check, a permittee must adhere to the operating standards of any permit regulations.

If there are violations, citations and revocations would be a remedy. Revocation of a sh ort-term rental permit requires a one year cooling off period prior to re-application.

As mentioned above, the requested language has been added to the draft Ordinance (6.30.070 B). However, it is not imminently clear if this is something that can be done through the current Police Department process. It is possible that a separate and limited process may be initiated through a third -party vendor. However, additional information will be available at the public hearing on September 2, 2025. In the case that a code requirement be determined to be illegal, the section can be struck at that time.

Information Previously Presented
Two other San Diego County cities with STR Ordinances have numerical limits on rental nights per year or maximum number of short -term units. Chula Vista limits the maximum number of

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rentals for non-hosted units to 90 days per year. Del Mar has an overall l imit of 129 short -term rental permits, or 5% of its housing stock. 5% of National City’s housing stock would 885 units.

There are no current regulations on STRs, which means that they are not technically permitted by our “permissive” Land Use Code. The on ly rentals regulated in the City are those of 30 days or more. While an exact number is hard to know, there are routinely 100-200 STRs shown in the City as vacation rentals by owner, primarily on the Airbnb or VRBO platforms. Costs to rent are highly variable and range from $300 to $900 a night on weekends (April was used as a search parameter). Although ensuring compliance with the Municipal Code with regard to public safety is paramount, another issue is the missed opportunity to collect Transient Occupancy Tax (TOT), which is required for traditional hotel and motel room rentals. Other cities that have STR Ordinances require TOT payment, as well as conformance with other standards as discussed below. National City’s TOT is 10% of the room rental rate. If there were 100 units rented out at $500 a night, the resulting loss in TOT revenue would equate to around $5,000 a day, depending on seasonality and market demand.

Of the 19 San Diego County jurisdictions (including the County), nine have STR regulations (Carlsbad, Chula Vista, Coronado, Del Mar, Encinitas, Oceanside, San Diego, Solana Beach, and Vista). Another six, while not having any specific STR regulations, allow STRs subject to normal rental property regulations (County, El Cajon, Escondido, Imperia l Beach, La Mesa, and San Marcos). Four cities, including National City, do not regulate or permit STR’s (the others are Lemon Grove, Poway, and Santee). TOT in the County ranges from 8% to 14%. The average TOT in San Diego County is 10.3%. All but two cities collect TOT on STR’s.

Because the majority of cities with STRs are beach cities with different populations, scenarios, and issues compared to National City, staff focused on the cities of Chula Vista and Vista, both of which have STR Ordinances and ar e similar in location or population. Both cities have basic requirements related to required permits, operating requirements, parking, payment of TOT, and maximum number of guests, as well as minimum stays (2 days) and transfer of licenses.

Chula Vista differs in that they require a STR landlord to maintain a primary residence in the city and limits a permittee to two STR licenses. They also allow events (weddings, parties, fundraisers, etc.) at STRs subject to a special permit. Vista has a more streamlined Ordinance, but allows up to five STRs per permittee and does not allow any events at STRs. Staff has attempted suggesting a streamlined, yet robust Ordinance that is a hybrid of the two, as well as with additional regulations based on previous Council input.

The next steps would generally be to discuss and introduce the Ordinance, adopt the Ordinance at a subsequent meeting, then implement the Ordinance. If this STR Ordinance is adopted, staff would then need to work with a vendor to implement a licensin g and TOT collection program.

Three vendors have been identified so far, whose services range anywhere from $10,000 to $15,000 annually, depending on services selected.

FINANCIAL STATEMENT:

Adoption of a Short-Term Rental Ordinance will generate Transient Occupancy Tax contributions to the General Fund through application of Short -Term Rental permits. Future license and monitoring costs are intended to be offset by permit fees.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Balanced Budget and Economic Development

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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 at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Second Reading

EXHIBIT:

Exhibit A - Draft Chapter 6.30 – Short-Term Rentals
Exhibit B – Draft Ordinance

Page 430 of 737 ends

Chapter 6.30
Short-Term Rentals

Sections:

6.30.010 Purpose – Findings and Determinations

6.30.020 Definitions

6.30.030 Short-Term Rentals Allowed

6.30.040 Eligibility Requirements

6.30.050 Authorized Agent

6.30.060 Short-Term Rental Permit Requirements

6.30.070 Short-Term Rental Application and Issuance

6.30.080 Short-Term Rental Operating Requirements

6.30.090 Violations and Enforcement

6.30.100 Denial, Suspension and Revocation

Section 6.30.010 Purpose - Findings and Determinations
This chapter establishes short-term rental standards that:

A. Prevent long-term rental units from being replaced with short-term rentals and protect affordable housing units from conversion.

B. Preserve and protect neighborhood character and livability from nuisanc es that are often associated with short-term rentals, including:

1. Excessive noise

2. Disorderly conduct

3. Illegal parking

4. Overcrowding

5. Excessive accumulation of refuse
C. Reduce the burden on City services.

D. Generate City revenue to share infrastructure cost and other public expenditures by operation of short-term rentals under established standards through the collection and payment of transient occupancy taxes.

This chapter is not intended to provide any owner of residential property with the right or privilege to violate any deed restrictions or private covenants, conditions and restrictions applicable to the owner's property that may prohibit the use of such owner's residential property as a short-term rental as defined in this chapter.

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“Director of Community Development” means the Director of Community Development of the City, or designee.
“Hosted unit" means a short-term rental where the owner remains and resides onsite or on a property immediately adjacent to the short-term rental property during the short-term rental period (except during daytime and/or working hours).
“Local Contact Person” means a Person designated by an Owner or an Agent, who, if designated to act as such, shall be available 24 hours per day, seven days per week for the purpose of: (1) being able to physically respond within one hour of notification of a complaint regarding the condition, operation or conduct of Occupants of the Dwelling, and (2) taking remedial action necessary to resolve any such complaints. A Local Contact Person may be the Owner or an Agent. “Non-hosted unit” means a short-term rental whereby the owner does not remain or reside on-site or on a property immediately adjacent to the short-term rental property during the short-term rental period.
"Owner" means an owner of record of the real property that contains the short -term rental, as provided for in the property deed.
“Primary Residence” means a Person’s permanent residence or usual place of return for housing as documented by at least two of the following: motor vehicle registration; driver’s license; voter registration; tax documents showing the residential unit as the Person’s residence; or a utility bill. A Person may have only one Primary Residence and must reside there for a minimum of 275 days during the calendar year. For properties with two or more existing legally permitted Dwelling Units (e.g., a duplex), the term “Primary Residence” shall apply individually to each unit that meets the criteria previously described. Accessory Dwelling Units or Junior Accessory Dwelling Units for which a construction permit was applied for prior to January 1, 2020, and any other accessory habitable structures that are located on a Short -Term Rental Property and do not meet the criteria previously described shall be considered part of the primary single-family residence for purposes of this chapter.
“Short-Term Rental” is defined as the rental of any legally permitted dwelling unit or any portion of any legally permitted dwelling unit, including detached single -family residences, guesthouses, condominiums, duplexes, townhomes and multiple -family dwellings, for occupancy for dwelling, lodging or sleeping purposes for a period of 30 consecutive calendar days or less, counting portio ns of calendar days as full days. Short -term rentals exclude the following: any Accessory Dwelling Unit permitted under Chapter 18.30.380; any Junior Accessory Dwelling Unit permitted under Chapter 18.30.390 of the Municipal Code; and any recreational vehicle as defined in Chapter 18.60 of the Municipal Code.

Section 6.30.030 Short-Term Rentals Allowed
Short-term rentals that comply with all requirements of this chapter are allowed in zones and Specific Plans in the City that permit residential uses.

A maximum of 180 short -term rental units shall be permitted in the City with no more than 60 45 such units being located per designated City Council District.

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Section 6.30.040 Eligibility Requirements
The following requirements must be met at the time of submitting an application for a permit to operate a Short-Term Rental:

A. The Applicant’s Primary Residence must be located in the City, or within a quarter-mile of the short-term rental if located outside the City.

B. The Dwelling Unit shall not be an Accessory Dwelling Unit (ADU) or a Junior Accessory Dwelling Unit (JADU) for which a construction permit was applied for on January 1, 2020, or later.

C. The Dwelling Unit shall not be a deed -restricted affordable housing unit, in a special group residence, or a single-room occupancy.

D. A Long -Term Tenant (greater than 30 days) shall not operate a Short -Term Rental without prior written approval of the Owner, such written approval to be provided to the City at the time of application for a Short -Term Rental Permit. An Owner may proactively prohibit Short -Term Rental subletting by tenants at any or all of their owned properties by submitting a notification in writing to the Community Development Department.

E. The Applicant shall not have been subject to a Short-Term Rental Permit revocation during the previous 24-month period.

G. An Applicant may not hold a Short -Term Rental Permit for more than one Nonprimary Residence Short-Term Rental at any given time.

Section 6.30.050 Authorized Agent
A. An owner may in writing authorize an agent to comply with the requirements of this chapter on their behalf. The agent shall submit a copy of the authorization to the City during the permit and permit renewal application process.

B. Notwithstanding Subsection A above, the ow ner shall not be relieved from any personal liability for noncompliance with this chapter, regardless of whether such noncompliance was caused, allowed or permitted by the owner's agent or the occupants or guests of the owner's short-term rental.

Section 6.30.060 Short-Term Rental Permit Requirements
Prior to renting or advertising the availability of a short -term rental, the owner or their agent shall obtain: (1) a business license pursuant to Chapter 6.04 of this Code; (2) a transient occupancy registration certificate pursuant to Chapter 4.32 of this Code; and (3) a short -term rental permit pursuant to this chapter.

Section 6.30.070 Short-Term Rental Permit Application and Issuance A. Contents of Permit Application. Owners or their agent shall submit a short-term rental permit application to the City for each short-term rental unit. The permit application shall be submitted on a City-approved form that requires the following information:

1. If applicable, owner's written authorization of agent(s).

2. Legal name, address and telephone number of all owner(s), agent(s), broker(s) for the short-term rental and the 24-hour, seven-day per week local contact person.

3. The address and assessor's parcel number of the property proposed to operate as a short-term rental.

4. The number of bedrooms within the short-term rental.

5. The number of existing on-site parking spaces designated for the exclusive use of the short-term rental.

6. Whether the short-term rental is a "hosted unit" or a "non-hosted unit".

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7. The number of fire extinguishers and smoke and carbon monoxide alarms at the short -term rental property, and a self -certification of compliance with the Fire Code, subject to review and approval by the City's Fire Marshal.

8. Copy of any application and all other forms that ren ters of the short-term rental will be required to complete.

9. Copy of the owner's rules and regulations for the short-term rental.

10. Signed statement acknowledging all of the following: (a) all of the information contained in the short-term rental permit application is true and correct; (b) all owner(s)/agent(s), and the designated local contact person, are familiar with the requirements of this chapter; (c) all owner(s)/agent(s), and the designated local contact person, are responsible for ensuring compliance with this chapter; and (d) failure to comply with this chapter and all applicable provisions of this Code may result in suspension and/or revocation of a short- term rental permit.

11. Such other standardized information as the City Manager, or designee, deems reasonably necessary to administer this chapter.

B. Persons who have a criminal record related to prostitution or other serious crime (Cal. Penal Code Title 9) shall be prohibited from operating a short-term rental.

C. Application Signatories. Al l owners listed on the property deed are required to sign the short -term rental permit application. Signatures of non -corporeal owners, such as partnerships and corporations, shall be made by the entity's duly authorized agent(s) or such individual(s) otherwise permitted by law to sign on the entity's behalf.

D. Permit Fee. A short-term rental permit fee has been established by resolution of the City Council and shall be paid in conjunction with initial and renewal applications. The fee is nonrefundable.

E. Granting of Permit and Renewal. The City shall grant or renew a permit if the application meets the requirements of this section and there are no grounds for denial pursuant to section 6.30.090.B. Short-term rental permits are valid for one year or per an approved multi- year agreement and shall be renewed in coordination with business license renewals.

F. Change of Ownership. Permits only apply to the person(s) named on the application and are non -transferable. Within 14 calendar days of a material change in the property ownership or substitution of listed agent(s), a new application for a short -term rental permit shall be submitted with the required application fee.

6.30.090.C. A broker that collects any revenue from arranging or listing a short-term rental location in the City has primary responsibility for collecting, paying and transmitting all TOT due to the City pursuant to Chapter 4.32 of this Code.

H. False Statements. Any false statements or information provided in the application are grounds for denial of a short -term rental permit pursuant to section 6.30.090.C, or if the permit has already been issued by the City, permit revocation or imposition of penalties.

I. Indemnification. By accepting a short-term rental permit, the permittee agrees to defend, indemnify and hold harmless the City, its officers, employees and agents from any and all liability arising out of the actions permitted by such permit, and agrees to pay on behalf of the City all claims, damages, judgments, legal and court costs, adjuster fees and attorney fees related thereto.

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Section 6.30.080 Short-Term Rental Operating Requirements The use and occupancy of short -term rentals shall comply with the following operating requirements. For purposes of this section, "responsible person" shall mean the owner(s) and agent(s) listed in the permit application for the short-term rental:

A. Compliance with Laws. The responsible person shall comply with all applicable provisions of this Code, and all other federal, state, and local laws, rules, and regulations.

B. Public Nuisance Prohibited. The responsible person shall not cause, allow or permit the use or occupancy of the short-term rental to create a public nuisance, including, but not limited to, unruly gatherings or raucous noise. "Raucous noise" includes yelling, screaming, shouting, or making other disturbing noises, including noise violations as identified in Title 12 of this Code, which unreasonably interfere with the peace and quiet of nearby residents or members of the public. "Unruly gathering" includes, but is not limited to, gatherings of occupants and/or guests at a short-term rental that exceed the number permitted on the short-term rental permit and gatherings of occupants and/or guests engaging in disorderly conduct that disturbs the public peace. The responsible person shall immediately abate any public nuisances caused by the use or occupancy or the short-term rental.

C. Noise Violations Prohibited. The responsible person shall not cause, allow or permit the emission or transmission of any noise violation as identified in Title 12 of this Code at a short-term rental, including from any sound-making equipment or sound-amplifying device.

D. Permitted Occupancy. The responsible person shall limit overnight occupancy of the short-term rental to a specific number of occupants not to exceed two persons per bedroom or studio plus one additional person per dwelling unit.

E. Parking. The responsible person shall limit the number of vehicles at the short- term rental to the number of parking spaces designated in the short-term rental permit. All on site parking spaces designated for occupant use in the permit shall be made available for the vehicles of occupants. Occupants shall avoid street parking and vehicles shall not impede access to sidewalks and adjoining neighboring properties or driveways. Vehicles shall not park in designated fire lanes. Parking of motor vehicles, trailers and recreational vehicles by occupants shall comply with Section 7.20.140 of this Code.

F. Trash and Refuse. Trash and refuse shall not be left or stored within public view except at a location that is designated for collection from sunset on the day prior to trash pick- up until up to midnight on the day designated for trash pick-up. All trash shall be in approved receptacles pursuant to Chapter 7.10 of this Code and comply with Section 7.14.100 of this Code.

G. Rental Agreements. Information on the permitted occupancy, parking capacity, and trash disposal requirements of the short-term rental, and the requirements of this chapter, shall be stated in the rental information and agreement provided to prospective renters, prior to their occupancy of the short-term rental. Renters shall agree in writing to follow the provisions of this chapter that apply to use and occupancy of a short-term rental.

H. Open Burning, Recreational Fires, and Portable Outdoor Fireplaces . Bonfires and Recreational Fires are strictly prohibited within the City limits.

I. Grills and Barbeques. Grills and barbeques are not permitted beneath a potentially flammable source, including, but not limited to, trees, umbrellas, decks, or other appurtenant structures, and shall be at least 10 feet away from structures and any flammable materials. Charcoal grills of any type are strictly prohibited.

J. No Roof Access. The responsible person shall not cause, permit or allow occupants to have roof access to the short-term rental. This prohibition does not include permitted roof decks.

K. Life/Safety Compliance. The short -term rental property shall meet basic life/safety requirements under applicable laws such as the California Health & Safety Code and

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City-adopted building and fire codes. Minimum operating requirements include, but are not limited to, operable smoke and carbon monoxide alarms, fire extinguisher, and first aid kit.

L. Inspections. Regardless of the time of day, the responsible person shall permit the City to inspect the short-term rental and property in response to any complaint received by the City, for the purpose of making a reasonable inspection to observe and enforce compliance with all applicable laws, rules and regulations, including the provisions of this chapter.

M. No Subletting. The subletting of a short-term rental is prohibited. Only the person with a valid short-term rental permit issued by the City is permitted to advertise and rent out a property as a short-term rental.

N. No short-term rental shall be used by any tenant for business purposes of any kind. Short-term rentals shall be used for residential purposes only.

O. Special Events and Temporary Uses Prohibited. Special events and temporary uses such as weddings, corporate events, commercial functions, and any other similar events that have the potential to cause traffic, parking, noise, or other adverse impacts in the neighborhood are prohibited at the short-term rental property or as a component of short-term rental activities.

P. No Commercial Filming. No commercial filming may occur at the short-term rental property concurrently with an active short-term rental permit.

Q. Permitted Guest Hours. The designated short -term rental occupants may host guests at the short-term rental during the hours of 10:00 a.m. to 9:00 p.m. daily.

R. Advertisements. It is unlawful for any person or entity to advertise a short-term rental in the City without a valid and current permit issued by the City. All advertisements for a property operating with a valid short-term rental permit, including those advertisements posted on or by hosting platform sites, shall include the short-term rental permit number provided by the City, the maximum number of occupants permitted to stay in the unit, and the maximum number of vehicles permitted to be parked at the short-term rental.

S. Hosted units may be used as a short -term rental for an unlimited number of days during the calendar year.

T. Non-hosted units may be used as a short -term rental for no more than 90 days per calendar year.

U. Minimum Night Stay. Non-hosted units shall have a minimum nig ht stay of two consecutive nights. This provision does not apply to hosted units or to short -term rentals in multi-family residential dwellings.

V. Interior Display of Short-Term Rental Permit. During the period of short-term rental operation, the responsible person shall affix a display on the inside of the main entry door of the short-term rental that includes: (1) the short-term rental permit that applies to the unit; (2) the maximum number of overnight occupants permitted to stay in the unit; (3) the maximum number of vehicles; and a (4) 24-hour, seven-day per week local phone number of the local contact person.

W. Exterior Complaint Phone Number Display. During the period of short-term rental operation, the responsible person shall affix a display on a front window of the short-term rental that includes: (1) a 24-hour, seven-day per week local phone number of a designated contact to take complaints regarding the unit; (2) the number of bedrooms; (3) maximum number of occupants permitted to stay in the unit; and (4) the maximum number of vehicles.

X. The Response Requirements. The responsible person shall, upon notification that occupants or guests of their short-term rental have violated provisions of this chapter or other applicable federal, state or local laws, rules, or regulations, prevent a recurrence of such conduct by those occupants or guests and shall respond to the notification of violations as soon as practically possible, but within 1 hour at the latest. Failure to timely respond to complaints may result in enforcement pursuant to section 6.30.080.C.

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Y. Good Neighbor Handout. Each Short -Term Rental shall post a Good Neighbor Handout inside the permitted premises in close proximity to an entry point that includes emergency contact information for the Permittee and the Local Contact Person (if different). The Good Neighbor Handout shall also provide information about parking restrictions, restrictions on noise and amplified sound, trash collection schedule, fire evacuation routes, an d any other information, as required by the Director of Community Development, applicable to the Short -Term Rental and the surrounding neighborhood.

Z. Good Neighbor Letter. Within one week following (1) the issuance of a Short -Term Rental Permit, (2) the issuance of a renewal permit, and/or (3) the approval of a transfer application, the Permittee shall mail or personally deliver in writing a Good Neighbor Letter, in a form authorized by the Director of Community Development to the Owners and Occupants of properties located on all sides of and directly across the street (or alley or other right-of-way) from the Short-Term Rental Property. Thereafter, within 30 days of occurrence of any of the events described in (1), (2) or (3), the Permittee shall sign under penalty of perjury, and submit to the Director of Community Development, a certification that the required mailing or delivery was completed. If at any time during the term of a Short-Term Rental Permit, the Good Neighbor Letter information for the Permitt ee or Local Contact Person changes, the Permittee shall mail or personally deliver in writing within one week an updated Good Neighbor Letter to the Owners and Occupants of properties located on all sides of and directly across the street (or alley or othe r right-of-way) from the Short -Term Rental Property to maintain accuracy and shall also promptly submit to the Director of Community Development a signed under penalty of perjury certification that the required mailing or delivery of the updated information was completed.

AA. Quiet Time From 10:00 p.m. to 9:00 a.m. The hours between 10:00 p.m. and 9:00 a.m. are considered to be “quiet time,” so that no outdoor activity will disturb the peace and quiet of the neighborhood adjacent to a Short -Term Rental Property or cause discomfort or annoyance to any reasonable Person of normal sensitivity residing in the area. It shall constitute a major violation if any Occupants engage in outdoor activities on a Short -Term Rental Property between the hours of 10:00 p.m. and 9:00 a.m. that involve the use of fire pits, barbecues, swimming pools, hot tubs, spas, tennis or paddleball courts, or other similar and related improvements or play equipment, or if any Occupants engage in outdoor parties, outdoor singing, shouting, clapp ing or other activities generally associated with partying or if Occupants engage in any outdoor drunk or disorderly conduct during those hours. Any other outdoor conduct between the hours of 10:00 p.m. and 9:00 a.m. that disturbs the peace and quiet of th e neighborhood adjacent to a Short -Term Rental Property, or causes discomfort or annoyance to any reasonable Person of normal sensitivity residing in the area, shall constitute a minor violation. It is not a violation for an Occupant to merely be out of doors during quiet time hours, so long as there is no conduct that disturbs the peace and quiet of the neighborhood adjacent to a Short-Term Rental Property or causes discomfort or annoyance to any reasonable Person of normal sensitivity residing in the area . The Permittee shall post signs of a size, type and at a location (or locations) acceptable to the Director of Community Development near all doors leading to the exterior of a Short-Term Rental Unit, advising Occupants of “quiet time.” BB. No-Fault Evictions . A property containing a unit with a no -fault eviction may not operate a short -term rental for five years from the date of the eviction unless it is a single -family home that has been vacated for purposes of owner occupancy.

Section 6.30.090 Violations, Enforcement and Penalties
A. Any person violating any of the provisions of this chapter shall be subject to enforcement procedures pursuant to Chapter 1.44 of this Code and any other enforcement mechanism available to the City, including revocation of the short-term rental permit pursuant to section 6.30.090.C.

B. Any short-term rental that is operating in violation of this chapter is hereby

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declared to constitute a public nuisance and, as such, may be abated or enjoined from further operation pursuant to Chapter 1.36 of this Code.

C. Notwithstanding Section 1.44.050 of this Code, t he following penalties apply to administrative citations issued for violations of this chapter:

1. For a first administrative citation, a fine not exceeding $500 per violation of each provision of this chapter.

2. For a second administrative citation within one year of the first citation, a fine not exceeding $1,000 per violation of each provision of this chapter.

3. For a third or subsequent administrative citation within one year of the first citation, a fine not exceeding $1,500 per violation of each provision of this chapter.

Section 6.30.100 Denial, Suspension and Revocation
A. Denial, Suspension or Revocation. In addition to any other remedy provided by this chapter, a short -term rental permit may be denied, suspended, or revoked by the City Manager, or designee, pursuant to this section.

B. Grounds for Denial or Suspension. A short-term rental permit may be denied or immediately suspended if any of the following grounds exist:

1. The application or renewal application for the short -term rental permit does not comply with all the requirements of section 6.30.060.

2. A material misrepr esentation, false or misleading information was included on the application or renewal application for the short-term rental permit.

3. An authorized official has cited the short-term rental property for health or safety violation(s) and such violation(s) remain outstanding.

4. The use or occupancy of the short-term rental property has been cited by an authorized official for felony violation(s) and criminal prosecution is pending.

5. A delinquency in the payment of any outstanding fees, assessments or taxes owed to the City related to the short -term rental property, including, but not limited to, Transient Occupancy Taxes (TOT).

Notwithstanding the foregoing, the City shall immediately revoke the short -term rental permit upon final det ermination that a felony violation relating to the use or occupancy of the short - term rental property has occurred.

D. Appeal of Denial, Suspension or Revocation. Any denial, suspension or revocation of a short-term rental permit shall be made by the City in writing and is subject to the appeal procedures set forth in Section 6.04.160 of this Code.

E. Prohibited Operations. If a short-term rental permit is revoked pursuant to this section, a short-term rental shall not be operated at the property for a period of 12 months from the date of such revocation unless the property has been sold and the new owner can demonstrate to the City that a change of property ownership occurred during that time period.

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ORDINANCE NO. 2025 –

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING TITLE 6 (BUSINESS AND FRANCHISE TAXES) OF THE NATIONAL CITY MUNICIPAL CODE ADDING CHAPTER 6.30 (SHORT-TERM RENTALS)

WHEREAS, the City of National City (the “City”), pursuant to the police powers delegated to it by the California Constitution, ha s the authority to enact or amend laws which promote the public health, safety, and general welfare of its residents; and WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for t he amendment of the National City Municipal Code; and
WHEREAS, pursuant to a published 10 -day notice of the adoption of said ordinance, a public hearing was held by the City Council on August 19, 2025, and at said public hearing, all persons interested were given the opportunity to appear and be heard before the City Council; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DOES ORDAIN AS FOLLOWS:

Section 1. All protests, if any, against said ame ndment to the Munic ipal Code and each of them be and hereby are denied and overruled.

Section 2. Section 6.30 is hereby added to read as follows:

Chapter 6.30
Short-Term Rentals

Sections:

6.30.010 Purpose – Findings and Determinations

6.30.020 Definitions

6.30.030 Short-Term Rentals Allowed

6.30.040 Eligibility Requirements

6.30.050 Authorized Agent

6.30.060 Short-Term Rental Permit Requirements

6.30.070 Short-Term Rental Application and Issuance

6.30.080 Short-Term Rental Operating Requirements

6.30.090 Violations and Enforcement

6.30.100 Denial, Suspension and Revocation

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Section 6.30.010 Purpose - Findings and Determinations
This chapter establishes short-term rental standards that:

A. Prevent long -term rental units from being replaced with short -term rentals and protect affordable housing units from conversion.

B. Preserve and protect neighborhood character and livability from nuisances that are often associated with short-term rentals, including:

1. Excessive noise

2. Disorderly conduct

3. Illegal parking

4. Overcrowding

5. Excessive accumulation of refuse
C. Reduce the burden on City services.

D. Generate City revenue to share infrastructure cost and other public expenditures by operation of short -term rentals under established standards through the collection and payment of transient occupancy taxes.

This chapter is not intended to provide any owner of residential property with the right or privilege to violate any deed restrictions or private covenants, conditions and restrictions applicable to the owner's property that may prohibit the use o f such owner's residential property as a short-term rental as defined in this chapter.

Section 6.30.020 Definitions
“Agent" means a person designated by the owner in writing to act on the owner's behalf with respect to owner's short-term rental and compliance with this chapter. “Bedroom" means a private room intended for or capable of being used for sleeping purposes, separated from other rooms by a door, curtain or other entry way, having at least one window, a closet or cabinet storage space, and is accessible to a bathroom without crossing into another bedroom. Bedrooms exclude bathroom, kitchen, living room, and laundry areas.
“Broker" means any person, including, but not limited to, on-line websites, on-line travel agencies, and on -line boo king agents, that offers, lists, advertises, accepts reservations and/or collects whole or partial payment for a short-term rental. “Director of Community Development” means the Director of Community Development of the City, or designee.
“Hosted unit" means a short-term rental where the owner remains and resides onsite or on a property immediately adjacent to the short-term rental property during the short-term rental period (except during daytime and/or working hours). “Local Contact Person” means a Person designated by an Owner or an Agent, who, if designated to act as such, shall be available 24 hours per day, seven days per week for the purpose of: (1) being able to physically respond within one hour of notification of a complaint regarding the condition , operation or conduct of Occupants of the Dwelling, and (2) taking

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remedial action necessary to resolve any such complaints. A Local Contact Person may be the Owner or an Agent.
“Non-hosted unit” means a short-term rental whereby the owner does not remain or reside on-site or on a property immediately adjacent to the short-term rental property during the short-term rental period.
"Owner" means an owner of record of the real property that contains the short -term rental, as provided for in the property deed.
“Primary Residence” means a Person’s permanent residence or usual place of return for housing as documented by at least two of the following: motor vehicle registration; driver’s license; voter registration; tax documents showing the residential unit as t he Person’s residence; or a utility bill. A Person may have only one Primary Residence and must reside there for a minimum of 275 days during the calendar year. For properties with two or more existing legally permitted Dwelling Units (e.g., a duplex), the term “Primary Residence” shall apply individually to each unit that meets the criteria previously described. Accessory Dwelling Units or Junior Accessory Dwelling Units for which a construction permit was applied for prior to January 1, 2020, and any other accessory habitable structures that are located on a Short-Term Rental Property and do not meet the criteria previously described shall be considered part of the primary single -family residence for purposes of this chapter.
“Short-Term Rental” is defined as the rental of any legally permitted dwelling unit or any portion of any legally permitted dwelling unit, including detached single -family residences, guesthouses, condominiums, duplexes, townhomes and multiple -family dwellings, for occupancy for dwelling, lodging or sleeping purposes for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Short - term rentals exclude the following: any Accessory Dwelling Unit permitted under Chapter

18.30.380; any Junio r Accessory Dwelling Unit permitted under Chapter 18.30.390 of the Municipal Code; and any recreational vehicle as defined in Chapter 18.60 of the Municipal Code.

Section 6.30.030 Short-Term Rentals Allowed
Short-term rentals that comply with all requireme nts of this chapter are allowed in zones and Specific Plans in the City that permit residential uses.

A maximum of 180 short-term rental units shall be permitted in the City with no more than 45 such units being located per designated City Council District.

Section 6.30.040 Eligibility Requirements
The following requirements must be met at the time of submitting an application for a permit to operate a Short-Term Rental:

A. The Applicant’s Primary Residence must be located in the City , or within a quarter - mile of the short-term rental if located outside the City.

B. The Dwelling Unit shall not be an Accessory Dwelling Unit (ADU) or a Junior Accessory Dwelling Unit (JADU) for which a construction permit was applied for on January 1, 2020, or later.

C. The Dwelling Unit shall not be a deed -restricted affordable housing unit, in a special group residence, or a single-room occupancy.

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D. A Long-Term Tenant (greater than 30 days) shall not operate a Short -Term Rental without prior written approval of the Owner, such written approval to be provided to the City at the time of application for a Short-Term Rental Permit. An Owner may proactively prohibit Short-Term Rental subletting by tenants at any or all of their owned properties by submitting a notification in writing to the Community Development Department.

E. The Applicant shall not have been subject to a Short -Term Rental Permit revocation during the previous 24-month period.

G. An Applicant may not hold a Short-Term Rental Permit for more than one Nonprimary Residence Short-Term Rental at any given time.

B. Notwithstanding Subsection A above, the owner shall not be relieved from any personal liability for noncompliance with this chapter, regardless of whether such noncompliance was caused, allowed or permitted by the owner's agent or the occupants or guests of the owner's short-term rental.

Section 6.30.060 Short-Term Rental Permit Requirements
Prior to renting or advertising the availability of a short-term rental, the owner or their agent shall obtain: (1) a business license pursuant to Chapter 6.04 of this Code; (2) a transient occupancy registration certificate pursuant to Chapter 4.32 of this Code; and (3) a short-term rental permit pursuant to this chapter.

Section 6.30.070 Short-Term Rental Permit Application and Issuance A. Contents of Permit Application. Owners or their agent shall submit a short- term rental permit application to the City for each short-term rental unit. The permit application shall be submitted on a City-approved form that requires the following information:

1. If applicable, owner's written authorization of agent(s).

2. Legal name, address and telephone number of all owner(s), agent(s), broker(s) for the short-term rental and the 24-hour, seven-day per week local contact person.

3. The address and assessor's parcel number of the property proposed to operate as a short-term rental.

4. The number of bedrooms within the short-term rental.

5. The number of existing on-site parking spaces designated for the exclusive use of the short-term rental.

6. Whether the short-term rental is a "hosted unit" or a "non-hosted unit".

8. Copy of any application and all other forms that renters of the short - term rental will be required to complete.

9. Copy of the owner's rules and regulations for the short-term rental.

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requirements of this chapter; (c) all owner(s)/agent(s), and the designated local contact person, are responsible for ensuring compliance with this chapter; and (d) failure to comply with this chapter and all applicable provisions of this Code may result in suspension and/or revocation of a short-term rental permit.

11. Such other standardized information as the City Manager, or designee, deems reasonably necessary to administer this chapter.

B. Persons who have a criminal record related to prostitution or other serious crime (Cal. Penal Code Title 9) shall be prohibited from operating a short-term rental.

C. Application Signatories. All owners listed on the property deed are required to sign the short -term rental permit application. Signatures of non -corporeal owners, such as partnerships and corporations, shall be made by the entity's duly authorized agent(s) or such individual(s) otherwise permitted by law to sign on the entity's behalf.

D. Permit Fee. A short-term rental permit fee has been established by resolution of the City Council and shall be paid in conjunction with initial and renewal applications. The fee is nonrefundable.

E. Granting of Permit and Renewal. The City shall grant or renew a permit if the application meets the requirements of this section and there are no grounds for denial pursuant to section 6.30.090.B. Short -term rental permits are valid for one year or per an approved multi-year agreement and shall be renewed in coordination with business license renewals.

F. Change of Ownership. Permits only apply to the person(s) named on the application and are non -transferable. Within 14 calendar days of a material change in the property ownership or substitution of listed agent(s), a new application for a short-term rental permit shall be submitted with the required application fee.

G. Short-term rentals are subject to the provisions of Chapter 4.32 of this Code regarding the collection and remittance of Transient Occupancy Tax (TOT). Failure to comply with these provisions may result in revocation of a short-term rental permit pursuant to section 6.30.090.C. A broker that collects any revenue from arranging or listing a short- term rental location in the City has primary responsibility for collecting, paying and transmitting all TOT due to the City pursuant to Chapter 4.32 of this Code.

H. False Statements. Any false statements or information provided in the application are grounds for denial of a short -term rental permit pursuant to section

6.30.090.C, or if the permit has already been issued by the City, permit revocation or imposition of penalties.

Section 6.30.080 Short-Term Rental Operating Requirements The use and occupancy of short-term rentals shall comply with the following operating requirements. For purposes of this section, "responsible person" shall mean the owner(s) and agent(s) listed in the permit application for the short-term rental:

A. Compliance with Laws. The responsible person shall comply with all applicable provisions of this Code, and all other federal, state, and local laws, rules, and regulations.

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identified in Title 12 of this Code, which unreasonably interfere with the peace and quiet of nearby residents or members of the public. "Unruly gathering" includes, but is not limited to, gatherings of occupants and/or guests at a short -term rental that exceed the number permitted on the short -term rental permit and gatherings of occupants and/or guests engaging in disorderly conduct that disturbs the public peace. The responsible person shall immediately abate any public nuisa nces caused by the use or occupancy or the short -term rental.

C. Noise Violations Prohibited. The responsible person shall not cause, allow or permit the emission or transmission of any noise violation as identified in Title 12 of this Code at a short -term re ntal, including from any sound -making equipment or sound -amplifying device.

F. Trash and Refuse. Trash and refuse shall not be left or stored within public view except at a location that is designated for collection from sunset on the day prior to trash pick-up until up to midnight on the day designated for trash pick-up. All trash shall be in approved receptacles pursuant to Chapter 7.10 of this Code and comply with Section

7.14.100 of this Code.

H. Open Burning, Recreational Fires, and Portable Outdoor Fireplaces. Bonfires and Recreational Fires are strictly prohibited within the City limits.

J. No Roof Access. The responsible person shall not cause, permit or allow occupants to have roof access to the short-term rental. This prohibition does not include permitted roof decks.

K. Life/Safety Compliance. The short -term rental property shall meet basic life/safety requirements under applicable laws such as the California Health & Safety Code and City-adopted building and fire codes. Minimum operating requirements include, but are not limited to, operable smoke and carbon monoxide alarms, fire extinguisher, and first aid kit.

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N. No short-term rental shall be used by any tenant for business purposes of any kind. Short-term rentals shall be used for residential purposes only.

P. No Commercial Filming. No commercial filming may occur at the short -term rental property concurrently with an active short-term rental permit.

Q. Permitted Guest Hours. The designated short-term rental occupants may host guests at the short-term rental during the hours of 10:00 a.m. to 9:00 p.m. daily.

S. Hosted units may be used as a short-term rental for an unlimited number of days during the calendar year.

T. Non-hosted units may be used as a short-term rental for no more than 90 days per calendar year.

U. Minimum Night Stay. Non-hosted units shall have a minimum night stay of two consecutive nights. This provision does not apply to hosted units or to short -term rentals in multi-family residential dwellings.

W. Exterior Complaint Phone Number Display. During the period of short-term rental operation, the responsible person shall affix a display on a front window of the short- term rental that includes: (1) a 24-hour, seven-day per week local phone number of a designated contact to take complaints regarding the unit; (2) the number of bedrooms; (3) maximum number of occupants permitted to stay in the unit; and (4) the maximum number of vehicles.

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information, as required by the Director of Community Development, applicable to the Short-Term Rental and the surrounding neighborhood.

Z. Good Neighbor Letter. Within one week following (1) the issuance of a Short-Term Rental Permit, (2) the issuance o f a renewal permit, and/or (3) the approval of a transfer application, the Permittee shall mail or personally deliver in writing a Good Neighbor Letter, in a form authorized by the Director of Community Development to the Owners and Occupants of properties located on all sides of and directly across the street (or alley or other right-of-way) from the Short-Term Rental Property. Thereafter, within 30 days of occurrence of any of the events described in (1), (2) or (3), the Permittee shall sign under penalty of perjury, and submit to the Director of Community Development, a certification that the required mailing or delivery was completed. If at any time during the term of a Short-Term Rental Permit, the Good Neighbor Letter information for the Permittee or L ocal Contact Person changes, the Permittee shall mail or personally deliver in writing within one week an updated Good Neighbor Letter to the Owners and Occupants of properties located on all sides of and directly across the street (or alley or other right-of-way) from the Short-Term Rental Property to maintain accuracy and shall also promptly submit to the Director of Community Development a signed under penalty of perjury certification that the required mailing or delivery of the updated information was completed.

AA. Quiet Time From 10:00 p.m. to 9:00 a.m. The hours between 10:00 p.m. and 9:00 a.m. are considered to be “quiet time,” so that no outdoor activity will disturb the peace and quiet of the neighborhood adjacent to a Short-Term Rental Property or cause discomfort or annoyance to any reasonable Person of normal sensitivity residing in the area. It shall constitute a major violation if any Occupants engage in outdoor activities on a Short-Term Rental Property between the hours of 10:00 p.m. and 9:00 a.m. that involve the use of fire pits, barbecues, swimming pools, hot tubs, spas, tennis or paddleball courts, or other similar and related improvements or play equipment, or if any Occupants engage in outdoor parties, outdoor singing, shouting, clapping or other activities generally associated with partying or if Occupants engage in any outdoor drunk or disorderly conduct during those hours. Any other outdoor conduct between the hours of 10:00 p.m. and 9:00 a.m. that disturbs the peace and quiet of the neigh borhood adjacent to a Short - Term Rental Property, or causes discomfort or annoyance to any reasonable Person of normal sensitivity residing in the area, shall constitute a minor violation. It is not a violation for an Occupant to merely be out of doors dur ing quiet time hours, so long as there is no conduct that disturbs the peace and quiet of the neighborhood adjacent to a Short -Term Rental Property or causes discomfort or annoyance to any reasonable Person of normal sensitivity residing in the area. The Permittee shall post signs of a size, type and at a location (or locations) acceptable to the Director of Community Development near all doors leading to the exterior of a Short -Term Rental Unit, advising Occupants of “quiet time.”
BB. No-Fault Evictions. A pro perty containing a unit with a no -fault eviction may not operate a short-term rental for five years from the date of the eviction unless it is a single -family home that has been vacated for purposes of owner occupancy.

Section 6.30.090 Violations, Enforcement and Penalties
A. Any person violating any of the provisions of this chapter shall be subject to enforcement pursuant to Chapter 1.44 of this Code and any other enforcement mechanism available to the City, including revocation of the short-term rental permit pursuant to section

6.30.090.C.

B. Any short-term rental that is operating in violation of this chapter is hereby declared to constitute a public nuisance and, as such, may be abated or enjoined from further operation pursuant to Section 1.36 of this Code.

C. Notwithstanding Section 1.44.050 of this Code, t he following penalties apply to administrative citations issued for violations of this chapter:

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1. For a first administrative citation, a fine not exceeding $500 per violation of each provision of this chapter.

2. For a second administrative citation within one year of the first citation, a fine not exceeding $1,000 per violation of each provision of this chapter.

3. For a third or subsequent administrative citation within one year of the first citation, a fine not exceeding $1,500 per violation of each provision of this chapter.

Section 6.30.100 Denial, Suspension and Revocation
A. Denial, Suspension or Revocation. In addition to any other remedy provided by this chapter, a short-term rental permit may be denied, suspended, or revoked by the City Manager, or designee, pursuant to this section.

B. Grounds for Denial or Suspension. A short -term rental permit may be denied or immediately suspended if any of the following grounds exist:

1. The application or renewal application for the short -term rental permit does not comply with all the requirements of section 6.30.060.

2. A material misrepresentation, false or misleading information was included on the application or renewal application for the short-term rental permit.

3. An authorized official has cited the short-term rental property for health or safety violation(s) and such violation(s) remain outstanding.

4. The use or occupancy of the short-term rental property has been cited by an authorized official for felony violation(s) and criminal prosecution is pending.

C. Revocation of Permit. If a third administrative citation is issued for violation(s) of this chapter at a short-term rental within a one-year period, the City shall revoke the short- term rental permit upon a determination that the violation(s) alleged in the third citat ion has occurred. Notwithstanding the foregoing, the City shall immediately revoke the short -term rental permit upon final determination that a felony violation relating to the use or occupancy of the short-term rental property has occurred.

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for and against the same in the Star News, a newspaper of general circulation published in the County of San Diego, California.

INTRODUCED this 19th day of August, 2025.

PASSED and ADOPTED this 2nd day of September, 2025.

__________________________
Ron Morrison, Mayor
ATTEST:
_____________________________
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
_____________________________
Barry J. Schultz, City Attorney

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AGENDA REPORT

Department: Community Development
Prepared by: Martin Reeder, AICP – Acting Director of Community Development Meeting Date: Tuesday, September 2, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Public Hearing: Second Reading and Adoption of an Ordinance Amending Title 15 (Buildings And Construction) of the National City Municipal Code Creating a New Section (15.83 – Lot Tie Agreements).

RECOMMENDATION:

Adopt the Ordinance Entitled: “An Ordinance of the City Council of the City of National City, California, Amending Title 15 (Buildings and Construction) of the National City Municipal Code Creating a New Section (15.83 – Lot Tie Agreements)”

PRIOR ACTION:

City Council introduced this item at their meeting of August 19, 2025.

EXPLANATION:

The Community Development Department has occasionally had to deal with developments occurring on multiple properties that are owned and developed as one. These occasions have become more frequent of late, which has led to discussion of the usefulness, in certain cases, of a Lot Tie Agreement. A Lot Tie Agreement allows two properties to be developed as one without the need for a lot merger and allows for flexibility with building separation, setbacks, and joint access. For example, a building may be built a cross a lot line or be located within the normally required setbacks of a property where both properties are held and operated as one (as though the lot line between the properties were never there). The Lot Tie Agreement would allow for this to happen without being considered as a relaxation of required codes. In the event the properties were ever to be sold separately, the City would first require that the buildings in question be demolished or moved in order to remedy any code requirement issues, then the agreement could be dissolved and the agreement terminated. However, in order to utilize this tool, it is required that the Municipal Code make reference to the use of said agreements through Ordinance. This Code Amendment would create such an Ordinance and allow for Lot Tie Agreements in the future.

FINANCIAL STATEMENT:

There is no budget impact as a result of this action.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Housing and Community Development

ENVIRONMENTAL REVIEW:

This is not a project under CEQA , and is therefore , not subject to environmental review.

CCR15378; PRC 21065.

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PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Second Reading

EXHIBITS:

Exhibit A – Draft NCMC Chapter 15.83 – Lot Tie Agreements Exhibit B – Draft Ordinance

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Chapter 15.83
Lot Tie Agreements

A. If a lot consisting of two or more parcels held by the same record owner is proposed to be developed as one, construction permits shall not be issued unless and until a Lot Tie Agreement is entered into to the satisfaction of the Building Official, City Engineer, and Director of Community Development. The Lot Tie Agreement shall be recorded against the applicable properties in the Office of the San Diego County Recorder. The Lot Tie Agreement shall require the record owner to hold the applicable parcels as one and to maintain common ownership and control. The Lot Tie Agreement shall be binding upon, and the benefits of the Lot Tie Agreement shall inure to the parties and all successors in interest to the parties to the Lot Tie Agreement.

B. Cancellation of a recorded Lot Tie Agreement shall be reviewed and approved by the Building Official, City Engineer, and Director of Community Development under the Site Plan Review process if the need to hold the property as one parcel no longer exists. Under no circumstances shall the cancellation of an agreement cause a violation of this Title or Title 18 of the NCMC. If approved, the City shall forward a written declaration of the cancellation of the Lot Tie Agreement to the County Recorder.

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ORDINANCE NO. 2025 –

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING TITLE 15 (BUILDINGS AND CONSTRUCTION) OF THE NATIONAL CITY MUNICIPAL CODE CREATING A NEW SECTION (15.83 – LOT TIE AGREEMENTS)

WHEREAS, the City of National City (the “City”), pursuant to the police powers delegated to it by the California Constitution, has the authority to enact or amend laws which promote the public health, safety, and general welfare of its residents; and WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the amendment of the National City Municipal Code; and
WHEREAS, pursuant to a published 10 -day notice of the adoption of said ordinance, a public hearing was held by the City Council on August 19, 2025, and at said public hearing, all persons interested were given the opportunity to appear and be heard before the City Council; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

Section 1. All protests, if any, against said ame ndment to the Munic ipal Code and each of them be and hereby are denied and overruled.

Section 2. Section 15.83 is hereby added to read as follows:

Chapter 15.83
Lot Tie Agreements

A. If a lot consisting of two or more parcels held by the same record owner is proposed to be developed as one, construction permits shall not be issued unless and until a Lot Tie Agreement is entered into to the satisfaction of the Building Official, City En gineer, and Director of Community Development. The Lot Tie Agreement shall be recorded against the applicable properties in the Office of the San Diego County Recorder. The Lot Tie Agreement shall require the record owner to hold the applicable parcels as one and to maintain common ownership and control. The Lot Tie Agreement shall be binding upon, and the benefits of the Lot Tie Agreement shall inure to the parties and all successors in interest to the parties to the Lot Tie Agreement.

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adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

Section 4. This Ordinance shall take effect and be in force thirty (30) days from the date of its passage, and before the expiration of fifteen (15) days after its passage, it or a summary of it, shall be published once, with the names of the members of the City Council voting for and against the same in the Star News, a newspaper of general circulation published in the County of San Diego, California.

INTRODUCED this 19th day of August, 2025.

PASSED and ADOPTED this 2nd day of September, 2025.
__________________________
Ron Morrison, Mayor

ATTEST:
_____________________________
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
_____________________________
Barry J. Schultz, City Attorney

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AGENDA REPORT

Department: Planning
Prepared by: Martin Reeder, AICP – Acting Director of Community Development Meeting Date: Tuesday, September 2, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Public Hearing – Second Reading and Adoption of an Amendment of NCMC 9.38 Establishing a Tobacco Retail License Program

RECOMMENDATION:

Adopt the Ordinance Entitled, “ An Ordinance of the City Council of the City of National City Amending Title 9 of the National City Municipal Code by Amending Chapter 9.38 Pertaining to Tobacco Retailer Licensing and Restricting the Sale, Display and Promotion of Tobacco to Youth.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

The City Council held a public hearing at their meeting of August 19, 2025 and introduced the Ordinance with the addition of language amendments capping the number of tobacco retail licenses at 54 and adding language to the compliance check (“decoy check”) section (9.38.140 C) as follows:

C. The city shall conduct up to two compliance checks per 12-month period that involves the participation of persons between the ages of 18 and 20 to enter licensed premises to attempt to purchase tobacco products, with additional compliance checks as required.

EXPLANATION:

At the meeting of January 21, 2025, the City Council directed staff per a Policy 105 request to consider development of an Ordinance amending Chapter 9.38 to include a Tobacco Retail License program. Staff returned with a staff report on March 4, 2025 and was directed to bring back an Ordinance amending the chapter and creating a Tobacco Retail License Program.

Chapter 9.38 of the Municipal Code – Restricting the sale, display, and pr omotion of tobacco products or cigarettes to minors – was adopted in 2000 and amended in 2003 (Exhibit A). This chapter contains regulations related to product placement within retail locations located within a thousand feet of any school, playground, recreation center or facility, childcare center, or library.

Advertisement of tobacco products within one thousand feet of the same is prohibited. Signage is also required stating that the sale of tobacco products and cigarettes to persons under twenty- one years of age is prohibited by law and subject to penalties.

In addition to the regulations contained in Chapter 9.38, Title 18 (Zoning) also contains regulations pertaining to tobacco specialty businesses, defined as a business with more than forty percent o f the floor area devoted to the use, display, and/or sales of tobacco products and/or paraphernalia. Chapter 18.30.230 requires a Conditional Use Permit for such a use.

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In 2018 the City Council adopted amendments to Chapters 9.37 (Prohibition of Smoking in Open Air Dining Areas), 9.38, and Chapter 10.52 ( Regulations for the use of municipal parks, playgrounds and golf courses). These amendments generally amended definitions of tobacco products to include electronic cigarettes.

In California, it is illegal for retailers and clerks to sell tobacco products to anyone under the age of 21. This law applies to the sale of traditional tobacco products like cigarettes as well as to the sale of electronic smoking devices like e-cigarettes and tobacco product paraphernalia. There is also a requirement for all retailers that sell electronic smoking devices in California to apply to the California Department of Tax and Fee Administration (CDTFA) for a license. However, this is for taxation purposes. California law also now prohibits the sale of most flavored tobacco products, including e-cigarettes and menthol cigarettes. This law went into effect on December 21, 2022.

This Code Amendment request was made via a Policy 105 action that was initiated based on communication with National City For Better Health, in collaboration with SAY San Diego, administrators of the San Diego Smoke -Free Project, which encouraged adoption of a Tobacco Retail License (TRL) policy. The TRL program is aimed at ensuring local and state tobacco laws are being followed. The program, while containing rules already encompassed at the state level, would place the administrative and enforcement burden for compliance with the City. The intention of the program is for it to be supported through license fees. The main components of a TRL include:

 No new license within a thousand feet of youth-oriented facilities  No new license within a thousand feet of another tobacco retailer  No new license within a thousand feet of a cannabis retailer  Total number of retail licenses limited to one per 2,500 residents  No sales of flavored tobacco products
 Packaging, labeling, and pricing consistent with manufacturer’s specifications and applicable federal requirements
 Annual renewable permit
 No transfer of license between location or person
 Compliance monitoring

All other components of the existing Municipal Code sections are maintained in some form in suggested language provided by SAY San Diego and incorporated in the attached Draft Ordinance (Exhibit B), with the license cap of 54 and additional compliance check language, as mentioned above. The license fees were recommended as per staff’s suggestion ($700).

FINANCIAL STATEMENT:

The license fee of $700 is intended to pay for staff time associated with business inspections.

Based on the 54 existing retail outlets selling tobacco, the total annual fee collected would amount to approximately $37,800, which would cover some or all of the cost of 54 annual business inspections and allow for a decoy compliance check program to augment staff inspections.

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.

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PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Second Reading

EXHIBITS:

Exhibit A – Current Chapter 9.38
Exhibit B – Draft Ordinance

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Chapter 9.38 RESTRICTING THE SALE, DISPLAY AND PROMOTION OF TOBACCO PRODUCTS OR CIGARETTES TO MINORS

National City, California, Code of Ordinances Created: 2025-01-29 17:25:06 [EST] (Supp. No. 65, Update 1)

Page 1 of 3 ends

Chapter 9.38 RESTRICTING THE SALE, DISPLAY AND PROMOTION OF TOBACCO

PRODUCTS OR CIGARETTES TO MINORS

9.38.010 Purpose and intent.

It is the purpose and intent of the city council to enact regulations further restricting the sale or display of tobacco products and cigarettes in the city to minors, beyond that provided for by state law. Ac cordingly, the city council enacts the following regulations as not preempted by the Federal Cigarette Labeling and Advertising Act, 15 U.S Code Section 1332, et seq.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.020 Definitions.

For purposes of this chapter:
"Advertising display" means a sign, sign-board, billboard, poster, or banner that is temporarily or permanently placed within a building or displayed in the window(s) of a commercial establishment to advertise or promote products. It does not include printed material on the container of a product sold at retail. "Cigarette," as used in this chapter and as defined by 15 U.S. Code Section 1332, means: (A) any roll of tobacco wrapped in paper or in any substance not containing tobacco; and (B) any roll of tob acco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in subparagraph A of this definition.
"Playground" means any outdoor premises or grounds owned or operated by the city, a public or private school, childcare center, or youth or recreational center, that contains any play or athletic equipment used or intended to be used by minors.
"Recreation center or facility" means any recreation center or facility under the control, direction or management of the city.
"School" means any public or private elementary or secondary school, attendance at which satisfies the compulsory education laws of the state of California.
"Self-service display" means an open display of tobacco products to which the public has access without the intervention of an employee.
"Tobacco advertising display" means an advertising display that concerns tobacco products. "Tobacco product" means any substance or product other than cigarettes containing tobacco leaf, including but not limited to cigars, pipe tobacco, snuff, chewing tobacco, and dipping tobacco. "Tobacco retailer" or "tobacco retail store" means any person or business entity that sells any tobacco product or cigarettes and includes an employee of that person or business entity. Any retail establishment selling tobacco products or cigarettes incidental to other merchandise qualifies within this def inition. "Vendor-assisted" means that only a store employee has access to a particular product and assists a customer by supplying the product, and the customer does not take possession of the product until it is purchased. (Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

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Created: 2025-01-29 17:25:06 [EST]
(Supp. No. 65, Update 1)

Page 2 of 3 ends

9.38.030 Measure of distance.

The distance between any tobacco retail store and any school, playgroun d, recreation center of facility, childcare center, or library, shall be measured in a straight line, without regard to intervening structures, from the exterior of the tobacco retail store to the closest property line of the school, playground, recreation center or facility, childcare center, or library.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.040 Restrictions on location of tobacco products and tobacco advertising displays.

A. It is unlawful for any tobacco retailer to place, maintain, or cause to be placed or maintained any tobacco product or tobacco advertising display within two feet of any candy, snack, or nonalcoholic beverage display inside a tobacco retail store located within one thousand feet of any school, playground, recreation center or facility, childcare center or library.

B. Except as allowed in Section 9.38.040(A), it is unlawful for any person to advertise tobacco products within one thousand feet of any school, playground, recreation center or facility, childcare center or library. (Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.050 Exceptions to location of tobacco products and tobacco advertising displays inside retail establishments.

A. Section 9.38.040 does not apply to commercial establishments where access to the premises by persons under twenty-one years of age is prohibited by law.

B. Section 9.38.040A does not apply within any establishment to displays containing tobacco products which are not accessible and visible to patrons, or to displays located above, behind or below a sales counter and which are not accessible to patrons. Any display containing tobacco products shall not be used as an "advertising display" as defined in Section 9.38.020.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000) (Ord. No. 2018-2452, § 4, 12-4-2018)

9.38.060 Self-service sale and distribution of tobacco products—Prohibited.

It is unlawful for any tobacco retailer to sell, permit to be sold, offer for sale, or display for purposes of sale, by means of self-service displays or by any means other than vendor-assisted sales, any tobacco products or cigarettes.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.070 Restrictions on distribution of free tobacco samples, promotional items or cigarettes to minors.

A. It is unlawful for tobacco retailer to distribute free tobacco products or promotional items, except in enclosed areas where minors are not permitted.

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Created: 2025-01-29 17:25:06 [EST]
(Supp. No. 65, Update 1)

Page 3 of 3 ends

B. It is unlawful for any tobacco retailer to permit or allow a minor to be within six feet of any area or display where cigarettes are distributed free or at reduced cost as part of a promotion. (Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.080 Posting of signs regarding tobacco products and cigarette sales to minors.

A. Every tobacco retailer shall post conspicuously in their place of business at each point of purchase a notice stating that the sale of tobacco products and cigarettes to persons under twenty -one years of age is prohibited by law and subject to penalties, except for United States Armed Forces active duty personnel with military ID who are at least eighteen years of age. The notice shall also state that photo identification is required to purchase tobacco products and cigarettes. The letters of the sign shall be at least one-half inch in height.

B. Any sign meeting the content requirements of California Business and Professional Code Section 22952(b) and regulations promulgated thereunder, and the posting requirements of California Penal Code Section 308(c), satisfies subsection "A" of this section.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000) (Ord. No. 2018-2452, § 5, 12-4-2018)

9.38.090 Extensions for compliance.

A. Any business that needs to make modifications to its business premises or advertising practices in order to comply with Sections 9.38.040, 9.38.060, or 9.38.080 of this chapter must comply within sixty calend ar days after June 30, 2003.

B. Any business owner may apply to the city manager, through the planning director, for a reasonable extension of time within which to comply with Sections 9.38.040, 9.38.060 or 9.38.080 of this chapter, provided that the application for extension is submitted on or before the last day of the sixty-day compliance period.

C. An extension may be granted only for good cause for a maximum of one year from the effective date. "Good cause" means that the extension is necessary to prevent the business from suffering unreasonable financial hardship, or to prevent unreasonable disruption in business operations. (Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

9.38.100 Enforcement.

A. Violations of this chapter shall be prosecuted as infractions for the first offense, and may be prosecuted as misdemeanors for subsequent offenses, subject to the penalties provided in Section 1.20.010 of this code. In addition, injunctive relief, civil penalties or administrative remedies provided in Title 1 of this code, may be sought or imposed for violations.

B. This chapter may be enforced by any police officer, building inspector, code conformance officer, business license inspector or fire inspector.
(Ord. 2223 § 1 (part), 2003: Ord. 2172 § 1 (part), 2000)

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ORDINANCE NO. 2025-____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA, AMENDING TITLE 9 OF THE NATIONAL CITY MUNICIPAL CODE BY AMENDING CHAPTER 9.38 PERTAINING TO TOBACCO RETAILER

LICENSING AND RESTRICTING THE SALE, DISPLAY AND PROMOTION OF

TOBACCO TO YOUTH

WHEREAS, the City of National City (the “City”), pursuant to the police powers delegated to it by the California Constitution, has the authority to enact or amend laws which promote the public health, safety, and general welfare of its residents; and WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the amendment of the National City Municipal Code; and
WHEREAS, pursuant to a published 10-day notice of the adoption of said ordinance, a public hearing was held by the City Council on August 19, 2025, and at said public hearing, all persons interested were given the opportunity to appear and be heard before the City Council; and NOW, THEREFORE, the City Council of the City of National City does ordain as follows:

Section 1. All protests, if any, against said amendment to the Municipal Code and each of them be and hereby are denied and overruled.

Section 2. Section 9.38 ( Restricting the Sale, Display and Promotion of Tobacco Products or Cigarettes to Minors) is hereby amended to read as follows:

Chapter 9.38 - TOBACCO RETAILER LICENSE AND RESTRICTING THE SALE, DISPLAY AND PROMOTION OF TOBACCO TO YOUTH.

Section 9.38.010 Purpose and intent.

It is the intent of the City Council, in enacting this ordinance, to ensure compliance with the business standards and practices of the City and to encourage responsible tobacco retailing and to discourage violations of tobacco-related laws, especially those which prohibit or discourage the sale or distribution of tobacco products to youth, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalties provided therein. Accordingly, the City Council enacts the following regulations as not preempted by the Federal Cigarette Labeling and Advertising Act, 15 U.S. Code sec. 1332, et seq.

Section 9.38.020 Definitions.

For purposes of this chapter:

A. "Arm's Length Transaction" means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an Arm's Length Transaction.

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B. "Applicant" means the Person applying for a permit pursuant to this chapter.

C. “Cannabis” has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time.

D. “Cannabis Product” has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time.

E. “Cannabis Retailer” means any retail establishment in which cannabis or cannabis products are sold or offered for sale to persons that do not hold a license to engage in commercial cannabis activity issued by the State of California in accordance with the Business and Professions Code Section 26000 et seq., as that section may be amended from time to time.

F. “Child-Resistant Packaging” means packaging that meets the definition set forth in Code of Federal Regulations, title 16, section 1700.15(b), as in effect on January 1, 2015, and was tested in accordance with the method described in Code of Federal Regulations, title 16, section 1700.20, as in effect on January 1, 2015.

G. “Cigar” means any roll of tobacco other than a cigarette wrapped entirely or in part in tobacco or any substance containing tobacco and weighing more than 4.5 pounds per thousand.

H. “Cigarette” means: (1) any roll of tobacco wrapped in paper or in any substance not containing tobacco; and (2) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described herein.

I. "City" means City of National City, California.

J. “Compliance checks” means systems the department uses to investigate and ensure that tobacco retailers are following and complying with the requirements of this chapter.

Compliance checks may involve the use of persons between the ages of 18 and 20 who purchase or attempt to purchase tobacco products. Compliance checks may also be conducted by the department or other units of government for educational, research, and training purposes or for investigating or enforcing federal, state, or local laws and regulations relating to tobacco products.

K. “Coupon” means any voucher, rebate, card, paper, note, form, statement, ticket, image, or other issue, whether in paper, digital, or other form, used for commercial purposes to obtain an article, product, service, or accommodation without charge or at a discounted price.

L. “Delivery sale” means the sale of any tobacco product to any person for personal consumption and not for resale when the sale is conducted by any means other than an in-person, over- the-counter sales transaction in a tobacco retail establishment. Delivery sale includes the sale of any tobacco product when the sale is conducted by telephone, other voice transmission, mail, the internet, or app-based service. Delivery sale includes delivery by licensees or third parties by any means, including curbside pick-up.

M. “Department” means the Community Development Department and any agency or person designated by the City to enforce or administer the provisions of this chapter.

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N. "Electronic Smoking Device" means an electronic device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e -hookah. “Electronic Smoking Device” includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine. “Elect ronic Smoking Device” does not include “drugs,” “devices,” or “combination products,” authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act."

O. "Flavored Tobacco Product" means any tobacco product that imparts:

1. a taste or odor distinguishable by an ordinary consumer, other than the taste or odor of tobacco, either prior to or during the consumption of such tobacco product, including but not limited to tastes or odors relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, mint, wintergreen, menthol, herb, or spice; or

2. a cooling or numbing sensation distinguishable by an ordinary consumer during the consumption of such tobacco product.

P. “Full Retail Price” means the displayed price plus all applicable taxes and fees if such taxes and fees are not included in the displayed price. For the purposes of this chapter, “Displayed Price” means the price displayed for a tobacco product on its pack aging or on any related shelving, advertising, or display where the tobacco product is sold or offered for sale.

Q. "Little Cigar” means any roll of tobacco other than a cigarette wrapped entirely or in part in tobacco or any substance containing tobacco and weighing no more than 4.5 pounds per thousand. Little Cigar includes, but is not limited to, tobacco products known or labeled as small cigar, little cigar, or cigarillo.

R. “Manufacturer” means any person, including any repacker or relabeler, who manufactures, fabricates, assembles, processes, or labels a tobacco product, or imports a finished tobacco product for sale or distribution into the United States.

S. “Moveable Place of Business” means any form of business that is operated out of a kiosk, truck, van, automobile or other type of vehicle or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transactions.

T. "Person" means any human being, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.

U. “Pharmacy” means any retail establishment in which the profession of pharmacy is practice by a pharmacist licensed by the State of California in accordance with the Business and Professions Code and where prescription pharmaceuticals are offered for sale, regardless of whether the retail establishment sells other retail goods in addition to prescription pharmaceuticals.

V. “Proprietor” means a person with an ownership or manager ial interest in a business. An ownership interest shall be deemed to exist when a person has a 10% or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person has or shares ultimate control over the day-to-day operations of a business.

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W. “Recreation Facility” means an area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes, and includes but is not limited to, a gymnasium, playing court, playing field, and swimming pool.

X. “Sale” mean any transfer, exchange, barter, gift, offer for sale, or distribution for a commercial purpose, in any manner or by any means whatsoever.

Y. "Self-Service Display" means the open display or storage of tobacco products in a manner that is physically accessible in any way to the general public without the assistance of the retailer or employee of the retailer and a direct face -to-face transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of Self-Service Display.

Z. “Smoking” means inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated product containing, made, or derived from nicotine, tobacco, marijuana, or other plant, whether natural or synthetic, that is intended for inhalation. “Smoking” includes using an electronic smoking device.

AA. ''Tobacco Product" means:

1. Any product containing, made of, or derived from tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether inhaled absorbed, or ingested by any other means, including but not limited to, a cigarette, cigar, little cigar, pipe tobacco, snuff, snus, or chewing tobacco;

2. Any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine; or

3. Any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes. ''Tobacco Product" does not mean “drugs,” “devices,” or “combination products,” authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.

BB. ''Tobacco Retailer" means any person who sells, offers for sale, or exchanges or offers to exchange for any form of consideration, tobacco products. This definition is without regard to the quantity of tobacco products sold, offered for sale, exchanged, or offered for exchange.

CC. “Tobacco Retailing” means engaging in the activities of a tobacco retailer.

DD. “Youth-Oriented Facility” means a parcel in the city that is occupied by:

1. a private or public kindergarten, elementary, middle, junior high, or high school;

2. a library open to the public;

3. a playground open to the public;

4. a youth center, defined as a facilit y where children, ages 6 to 17, inclusive, come together for programs and activities;

5. a recreation facility open to the public, defined as an area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes;

6. a park open to the public or to all the residents of a private community;

7. a licensed child-care facility or preschool [other than a small-family day care home or a

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large-family day care home [as defined in California Health & Safety Code § 1596.78]].

Section 9.38.030 General requirements and prohibitions.

A. Tobacco retailer’ s license required. I t shall be unlawful for any person to engage in tobacco retailing in the City without first obtaining and maintaining a valid tobacco retailer’s license for each location at which tobacco retailing is to occur.

B. Law ful business operation. I n the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license issued, it shall be a violation of this chapter for a licensee, or any of the licensee’s agents or employees, to violate any local, state, or federal law applicable to the sale of tobacco products.

C. Smoking prohibited. Smoking, including smoking for the purpose of sampling any tobacco product, is prohibited within the indoor area of any retail establishment licensed under this chapter. Smoking also prohibited outdoors within 25 feet of any retail establishment licensed under this chapter.

D. Minimum Legal Sales Age. No person engaged in tobacco retailing shall sell a tobacco product to a person under 21 years of age.

E. Display of License. Each tobacco retailer license shall be prominently displayed in a publicly visible location at the licensed location.

F. Positive identification required. No person engaged in tobacco retailing shall sell a tobacco product to another person without first verifying by means of government- issued photographic identification that the recipient is at least 21 years of age.

G. Self-service displays prohibited. Tobacco retailing by means of a self-service display is prohibited.

H. On-site Sales. A ll sales of tobacco products shall be conducted in-person in the licensed location.

I t shall be a violation of this chapter for any tobacco retailer or any of the tobacco retailer’s agents or employees to engage in the delivery sale of tobacco products or to knowingly or recklessly sell or provide tobacco products to any person that intends to engage in the delivery sale of the tobacco product in the City.

I. Posting of Signs. Every tobacco retailer shall post conspicuously in their place of business at each point of purchase a notice stating that the sale of tobacco products and cigarettes to persons under twenty-one years of age is prohibited by law and subject to penalties. The notice shall also state that photo identification is required to purchase tobacco products. The letters of the sign shall be at least one-half inch in height.

a. Any sign meeting the content requirements of California Business and P rofessional Code Section 22952(b) and regulations promulgated thereunder, and the posting requirements of California Penal Code Section 308(c), satisfies Subsection I of this Section.

Section 9.38.040 Limits on eligibility for a tobacco retailer license.

A. Mobile Vending. No license may be issued to authorize tobacco retailing at other than a fixed location. No tobacco retail license will be issued to a moveable place of business.

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B. Licensed cannabis businesses. No license may be issued, and no existing license may be renewed, to authorize tobacco retailing at a location licensed for commercial cannabis activity by the State of California under Business and Professions Code Division 10.

C. Pharmacies. One year after the effective date of this ordinance, no license may be issued, and no existing license may be renewed, to authorize tobacco retailing in a pharmacy.

D. Proximity to youth -oriented facilities. No newly established business requesting to be licensed for the sale of tobacco may be within 1,000 feet of a youth -oriented facility as measured by a straight line from the nearest point of the property line of the parcel on which the youth-oriented facility is located to the nearest point of the property line of the parcel on which the applicant’s business is located.

E. Proximity to other tobacco retailers . No newly established business requesting to be licensed for the sale of tobacco may be within 1,000 feet of a tobacco retailer location already licensed pursuant to this chapter as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing licensee’s business is located.

F. Proximity to cannabis retailers. No new license may be issued to authorize tobacco retailing within [ 1,000 ] feet of an existing cannabis retailer as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing cannabis retailer is located.

G. Measure of distance . The distance between any tobacco retail store and any school, playground, recreation center or facility, childcare center, library, or other tobacco retailer, or cannabis retailer, shall be measured in a straight line, without regard to intervening structures, from the exterior of the tobacco retail store to the closest property line of the school, playground, recreation center or facility, childcare center, or library.

H. Population and density. The issuing of tobacco retailer licenses is limited as follows:

1. The total number of tobacco retailer licenses within the city shall be limited to one for each 800 inhabitants of the city.

2. For the purposes of this subsection, the total population of the city shall be determined by the most current published total available from the U.S. Census Bureau or the California State Department of Finance, whichever has been more recently updated, as of the date the license application is filed.

3. No new license may be issued to authorize tobacco retailing if the number of tobacco retailer licenses already issued equals or exceeds the total number authorized pursuant to subsection (1).

I. Existing retailers. A tobacco retailer operating lawfully on the date this ordinance is adopted may receive an exemption from Subsection D, E, F, and H, as long as all of the following conditions are met:

1. the license is timely obtained and is renewed without lapse or revocation;

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2. the tobacco retailer is not closed for business or otherwise suspends Tobacco Retailing for more than sixty (60) consecutive days;

3. the tobacco retailer retains the right to operate under other applicable laws.

J. Change of business dispute. If the City determines that a tobacco retailer has substantially changed their business premises or operation and the tobacco retailer disputes this determination, the Tobacco Retailer bears the burden of proving by a preponderance of evidence that such change(s) do not constitute a substantial change.

Section 9.38.050 Restrictions on location of tobacco products, and tobacco advertising displays.

A. It is unlawful for any tobacco retailer to place, maintain or cause to be placed or maintained any tobacco product or tobacco advertising display within two feet of any candy, snack, or non-alcoholic beverage display inside a tobacco retail store located within one thousand feet (1,000) of any youth-oriented facility.

B. Except as allowed in subsection A, it is unlawful for any person to advertise tobacco products within one thousand feet (1,000) of any youth-oriented facility.

C. Subsection A does not apply to commercial establishments where access to the premises by persons under twenty-one years of age is prohibited by law.

Section 9.38.060 Sale of flavored tobacco products prohibited.

The sale of flavored tobacco products shall be regulated by state law.

Section 9.38.070 Tobacco product pricing and packaging.

A. Packaging and labeling. No tobacco retailer shall sell any tobacco product to any consumer unless the tobacco product: (1) is sold in the manufacturer’s packaging intended for sale to consumers; (2) conforms to all applicable federal labeling requirements; and (3) conforms to all applicable child -resistant packaging requirements. Upon request by the C ity, a licensee must provide a copy of the certificate of compliance or full laboratory testing report for the packaging used.

B. Display of price. The price of each tobacco product offered for sale shall be clearly and conspicuously displayed on the tobacc o product or on any related shelving, posting, advertising, or display at the location where the item is sold or offered for sale.

C. Distribution of tobacco samples or promotional items. It is unlawful for any person to distribute free or nominally priced tobacco products.

D. Prohibition of tobacco coupons and discounts. No tobacco retailer shall:

1. honor or redeem, or offer to honor or redeem, a coupon to allow a consumer to purchase a tobacco product for less than the full retail price;

2. sell any tobacco product to a consumer through a multiple -package discount or otherwise provide any such product to a consumer for less than the full retail price in consideration for the purchase of any tobacco product or any other item; or

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3. provide any free or discounted item to a consumer in consideration for the purchase of any tobacco product.

E. Prohibition on the sale of individual cigarettes . No tobacco retailer shall sell cigarettes individually or in packages containing less than 20 cigarettes.

Section 9.38.080 License application procedure.

A. An application for a tobacco retailer’s license shall be submitted in the name of each proprietor proposing to conduct retail tobacco sales and shall be signed by each proprietor or an authorized agent thereof. All applicati ons shall be submitted on a form supplied by the Department.

B. A license issued contrary to this Chapter, contrary to any other law, or on the basis of false or misleading information shall be revoked pursuant to this Chapter. Nothing in this Chapter shall be construed to vest in any person obtaining and maintaining a tobacco retailer’s license any status or right to act as a tobacco retailer in contravention of any provision of law.

C. Applicant submissions must contain the following information:

1. The name, address, and telephone number of each proprietor of the business seeking a license.

2. The business name, address and telephone number of the location for which a license is sought.

3. The name and mailing address authorized by each proprietor to receiv e all communications and notices required by, authorized by, or convenient to the enforcement of this Chapter.

4. Proof that the location for which a tobacco retailer’s license is sought has been issued all necessary state license for the sale of tobacco pr oducts.

5. Whether or not any proprietor or any agent of the proprietor has admitted violating, or has been found to have violated, this Chapter or any other local, state, or federal law governing the sale of tobacco products and, if so, the dates and locati ons of all such violations within the previous five years.

6. A signed affidavit affirming that the proprietor has not sold and will not sell any tobacco product without a license required by this Chapter.

7. Such other information as the Department deems nece ssary for the administration or enforcement of this Chapter as specified on the application form required by this section.

8. Copies of applications for licenses and licenses issued pursuant to California Business and Professions Code Section 22970 et seq., the "Cigarette and Tobacco Products Licensing Act of 2003." If an application for a license pursuant to the

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"Cigarette and Tobacco Products Licensing Act of 2003" has been denied, copies of documentation regarding the reason for the denial of such license.

D. Change in information. A licensed tobacco retailer shall inform the Department in writing of any change in the information submitted on an application for a Tobacco Retailer's license within 10 business days of a change.

E. All information specified in an application pursuant to this section shall be subject to disclosure under the California Public Records Act (California Government Code Section 6250 et seq.) or any other applicable law, subject to the laws' exemptions.

Section 9.38.090 License issuance and renewal.

A. Issuance of license . Upon the receipt of a complete and adequate application for a tobacco retailer's license and the license fee required by this chapter, the Department may grant or deny the application for license, or it may delay action for a reasonable period of time to complete any investigation of the application of the applicant deemed necessary.

B. Denial of application. The Department may deny an application for a tobacco retailer’s license based on any of the following reasons:

1. The information presented in the application is inaccurate or false. Intentionally supplying inaccurate information shall be a violation of this chapter;

2. The application seeks authorization for tobacco retailing at a location for which this chapter prohibits a license to be issued;

3. The application seeks authorization for tobacco retailing for a proprietor to whom this chapter prohibits a license to be issued; or

4. The application seeks authorization for tobacco reta iling in a manner that is prohibited pursuant to this chapter, that is unlawful pursuant to any other chapter of this Code, or that is unlawful pursuant to any other law.

5. Any other suitable reason the granting of a license to the applicant is not consistent with the public health and welfare, including the applicant’s history of noncompliance with this Chapter and other laws relating to the sale of tobacco products.

6. The applicant is under the age of twenty-one.

Section 9.38.100 License renewal and expiration.

A tobacco retailer's license is invalid if the appropriate fee has not been timely paid in full or if the term of the license has expired. The term of a tobacco retailer license is one (1) year. Each tobacco retailer will apply for the renewal of their tobacco retailer’s license and submit the license fee no later than thirty (30) days prior to expiration of the current license. A retailer that fails to timely submit a renewal application a nd fee is ineligible for license renewal and must submit a new application pursuant to this Chapter.

Section 9.38.110 Licenses not transferrable, past violations at retail location.

A. Licenses not transferrable. A tobacco retailer's license may not be transferred from one Person to another or from one location to another. A new tobacco retailer's license is

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required whenever a tobacco retailer has a new tobacco retailing location or a location has a change in proprietors.

B. Past violations. Notwithstanding any other provision of this chapter, prior violations at a location shall continue to be counted against a location and license ineligibility periods shall continue to apply to the location unless:

1. The location has been transferred to the new Proprietor(s) in an Arm's Length Transaction; and

2. The new proprietor(s) provide the City with clear and convincing evidence that the new Proprietor(s) have acquired the location in an Arm's Length Transaction.

Section 9.38.120 License conveys a limited, conditional privilege.

Nothing in this chapter shall be construed to grant any Person obtaining and maintaining a Tobacco Retailer's license any status or right other than the limited conditional privilege to act as a Tobacco Retailer at the location in the City identified on the face of the permit. Nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of, any other provision of applicable law

Section 9.38.130 Fee for license

The fee to issue or to renew a tobacco retailer's license shall be established from time to time by resolution of the City Council. The fee shall be calculated so as to recover the total cost of administration and enforcement of this chapter, including, but not limited to, issuing a license, administering the l program, retailer education, retailer inspection and compliance checks, documentation of violations, and prosecution of violators, but shall not exceed the cost of the regulatory program authorized by this chapter. All fees and interest upon proceeds of fees shall be used exclusively to fund the program. Fees are nonrefundable except as may be required by law.

Section 9.38.140 Compliance monitoring.

A. Compliance with this chapter shall be monitored by the Department. In addition, the City may designate additional persons to monitor compliance with this chapter. All licensed premises must be open to inspection by city staff or designated persons during regular business hours.

B. The Department shall inspect each tobacco reta iler at least one (1) time per 12 -month period.

D. Nothing in this section shall create a right of action in any licensee or other person against the city or its agents

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Section 9.38.150 Suspension or revocation of permit.

A. Notice. Upon discovery of a suspected violation, the Department shall issue the alleged violator, either personally or by first class mail addressed to the authorized address, an administrative citation that sets forth the alleged violation and which shall inform the alleged violator of their right to be heard on the accusation. The administrative citation shall comply with the requirements of Section 1.44.030 of the National City Municipal Code.

B. Hearings. Upon issuance of an administrative citation, a person accused of violating this Ordinance may request in writing a hearing on the matter in accordance with the procedures set forth in Sections 1.44.070 – 1.44.120 of the National City Municipal Code.

C. Costs. If this administrative citation is upheld by the he aring officer, the city’s actual expenses in holding the hearing up to a maximum of one thousand dollars ($1,000) must be paid by the person requesting the hearing.

D. Continued violation.

1. Each day on which a tobacco product is distributed, sold, or offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter; and

2. Each individual tobacco product that is distributed, sold, or offered for sale in violation of this Chapter shall constitute a separate violation of this Chapter.

E. Revocation of License Wrongly Issued. A tobacco retailer's license shall be revoked if the Department finds, after the Licensee is afforded notice and an opportunity to be heard, that one or more of the bases for denial of a license under this Chapter existed at the time application was made, or at any time before the permit issued, or one or more of the bases for denial of a renewal permit under this Chapter existed at the time the renewal permit was issued. Notice and appeal of the revocation shall be conducted in accordance with this section.

F. If a license issued under this chapter is suspended or revoked, all tobacco products at the suspended or revoked tobacco retailer's location shall be removed from public view for the duration of the suspension or revocation. The tobacco retailer additionally shall not display any advertisement relating to tobacco products that promotes the sale or distribution of such products from the tobacco retailer's location or that could lead a reasonable consumer to believe that such products can be obtained at that location for the duration of the suspension or revocation.

Section 9.38.160 Violations and penalties.

A. Any licensee who is found to be in violation of this Ordinance, whether such violation is determined by a hearing officer or superior court; or the Licensee has pleaded guilty, "no contest," or its equivalent, or admitted to a violation, will be charged an administrative fine and as well as their license suspended or revoked follows:

1. Upon a finding by the Department of a first violation of this chapter at a location, the Licensee shall be issued a warning.

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2. Upon a finding by the Department of a second violation of this chapter at a location within any 36 -month period, the licensee will be charged an administrative fine of $300 and the license shall be suspended for 90 days.

3. Upon a finding by the Department of a third violation of this chapter at a location within any 36 -month period, the licensee will be charged an administrative fine of $600 and the license shall be suspended for one year.

4. Upon a finding by the Department of a fourth violation of this chapter at a location within any 36-month period, the licensee will be charged an administrative fine of $1,000 and the license shall be revoked.

B. Tobacco retailing without a valid license. In addition to any other penalty authorized by law, if the Department finds based on a preponderance of evidence, after notice and an opportunity to be heard, that any person has engaged in tobacco retailing at a location without a valid tobacco retailer's permit, either directly or through the person's agents or employees, the person shall be ineligible to apply for, or to be issued, a tobacco retailer's permit as follows:

1. After a first violation of this section at a location within any 36-month period, no new permit may be issued for the person or the location (unless proprietorship of the business at the location has been transferred in an Arm's Length Transaction), until 90 days have passed from the date of the violation.

2. After a second violation of this section at a location within any 36-month period, no new permit may be issued for the person or the location (unless proprietorship of the business at the location has been transferred in an Arm's Length Transaction), until 180 days have passed from the date of the violation.

3. After of a third or subsequent violation of this section at a location within any 36- month period, no new license may be issued for the person or the location (unless Proprietorship of the business at the location has been transferred in an Arm's Length Transaction), until five years have passed from the date of the violation.

C. Whenever evidence of a violation of this chapter is obtained in any part through the participation of a Person under the age of 18 years old, such a Person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this chapter and the alleged violation shall be adjudicated based upon the preponderance of the evidence presented.

D. All tobacco retailers are responsible for the actions of their employees relating to the sale, offer to sell, and furnishing of tobacco products at the retail location. The sale of any tobacco product sha ll be considered an act of the tobacco retailer.

E. Tobacco products offered for sale in violation of this Chapter are subject to seizure by the Department or its designee and shall be forfeited after the licensee or any other owner of the tobacco products seized is given reasonable notice and an opportunity to demonstrate that the tobacco products were not offered for sale in violation of this Chapter. The decision by the Department may be appealed pursuant to the procedures set forth in Section 9.38.150.

Forfeited tobacco products shall be destroyed and properly disposed of at the cost of the seller

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after all internal appeals have been exhausted and the time in which to seek judicial review pursuant to California Code of Civil Procedure section 1094.6 or ot her applicable law has expired without the filing of a lawsuit or, if such a suit is filed, after judgment in that suit becomes final.

F. Violations of this Chapter may, at the discretion of the City Attorney, be prosecuted as infractions or misdemeanors when the interests of justice so require.

G. Violations of this Chapter are hereby declared to be public nuisances.

H. In addition to other remedies provided by this Chapter or by other law, any violation of this Chapter may be remedied by a civil action brought by City Attorney, including administrative or judicial nuisance abatement proceedings, civil code enforcement proceedings, and suits for injunctive relief.

I. The remedies specified in this section are cumulative and in addition to any other remedies available under State or local law for a violation of this Code.

Section 9.38.170 Exceptions.

A. Nothing in this Chapter prevents the provision of tobacco products to any person as part of an indigenous practice or a lawfully recognized religious or spiritual ceremony or practice.

B. Nothing in this Chapter shall be construed to penalize the purchase, use, or possession of a tobacco product by any person not engaged in tobacco retailing.

Section 9.38.180 Construction and severability.

It is the intent of the City Council to supplement applicable state and federal law and not to duplicate or contradict such law and this ordinance shall be construed consistently with that intention. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Chapter, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases of this Chapter, or its application to any other person or circumstance. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, o r phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

Section 9.38.190 Public records.

All information provided to the Department by a licensee or license applicant pursuant to this Chapter shall be subject to disclosure under the California Public Records Act (California Government Code section 6250 et seq.) or any other applicable law.

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INTRODUCED this 19th day of August, 2025.

PASSED and ADOPTED this 2nd day of September, 2025.
__________________________
Ron Morrison, Mayor

ATTEST:
_____________________________
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
_____________________________
Barry J. Schultz, City Attorney

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AGENDA REPORT

Department: Planning
Prepared by: Sophia Depew, Assistant Planner
Meeting Date: Tuesday, September 2, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Coastal Development Permit and Conditional Use Permit (CUP) for On-Site Beer and Wine Sales, and Live Entertainment at an Existing Restaurant (La Malquerida by Dolche) Located at 1524 McKinley Avenue.

RECOMMENDATION:

Staff Recommends Adoption of the Resolution Entitled: “A Resolution of the City Council of the City of National City, California , Determining that the Project is Categorically Exempt from the California Environmental Quality Act (CEQA) Under Class 1 of the CEQA Guidelines Section 15301 (Existing Facilities) and Approving a Coastal Development Permit and Conditional Use Permit for Beer and Wine Sales (ABC Type-41) and Live Entertainment at an Existing Restaurant (La Malquerida by Dolche) Located at 1524 McKinley Avenue in the Coastal Zone. Case File No. 2025-12 CUP CDP APN: 557-055-08.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

On July 21, 2025, the Planning Commission recommended approval of the CUP by a unanimous vote of those present. The motion recommended approval of the item with modified conditions of approval related to hours of operation:

The sale of alcoholic beverages shall only be permitted between the hours of 8:00 a.m. to 10:00 p.m. daily. Indoor live entertainment shall only be permitted between the hours of 10:00 a.m. to 11:30 p.m. daily. Outdoor live entertainment shall only be permitted between the hours of 10: 00 to 10:00 p.m. daily.

The City Council reviewed the Planning Commission Notice of Decision at the Council meeting of August 19, 2025 and voted to hold the item for a public hearing.

EXPLANATION:

Executive Summary
The operator of La Malquerida by Dolche restaurant has applied for a California Department of Alcoholic Beverage Control (ABC) Type 41 license to offer on-site beer and wine sales. The applicant is proposing alcohol sales from 8:00 a.m. to midnight daily. The applicant is also requesting live entertainment indoors from 8:00 a.m. to 11:30 p.m. and outdoors from 8:00 a.m. to 10:00 p.m. daily.

Planning Commission Action
The Planning Commission held a public hearing on July 21, 2025. One community member spoke in opposition to the project . One written comment was provided prior to the meeting (Exhibit I).

Ultimately, the Planning Commission recommended approval of the CUP with modified conditions by unanimous vote of those members present (five). One commissioner was absent.

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The motion recommended approval of the item with modified conditions of approval related to hours of operation: The sale of alcoholic beverages shall only be permitted between the hours of 8:00 a.m. to 10:00 p.m. daily. Indoor live entertainment shall only be permitted between the hours of 10:00 a.m. to 11:30 p.m. daily. Outdoor live entertainment shall only be permitted between the hours of 10:00 to 10:00 p.m. daily.

Site Characteristics
The 2,500 square foot property is located on the northwest end of McKinley Avenue between West 14th and West 18th Street. The property is zoned Medium Manufacturing (MM) and is located within the City’s Coastal Zone (typically the area west of Interstate 5). The zoning map indicates the lot as Medium Industrial (IM). However, the most recent comprehensive Land Use Co de Update (2011) is not yet active in the Coastal Zone. Therefore, the City’s previous zoning (MM) would apply.

The restaurant is approximately 1,400 square feet, with a 700 square -foot outdoor patio and seating in the back. The applicant is proposing li ve entertainment on the outside patio. The outdoor patio is surrounded on all sides by walls and fences. The building is situated between two industrial businesses, Handy Metal Mart and Walashek Industrial. The surrounding area is almost entirely industrial, except for one residential use two properties to the north. All of the properties in the vicinity of the restaurant are zoned Medium Manufacturing.

Proposed Use
The applicant is proposing beer and wine sales (ABC Type -41) and live entertainment at the restaurant. Proposed hours for alcohol sales are from 8:00 a.m. to midnight daily. Proposed hours for live entertainment are indoors from 8:00 a.m. to 11:30 p.m. and outdoors from 8:00 a.m. to 10:00 p.m. daily.

Analysis
Section 18.30.050 of the Land Use Code allows for on-site alcohol sales and live entertainment with an approved Conditional Use Permit (CUP). Additional requirements for alcohol CUPs include expanded notification, a community meeting, and distance requirements. City Council Policy 707 also regulates alcohol sales in the city.

Hours of Operation for Alcohol Sales
La Malquerida by Dolche is proposing to sell beer and wine from 8:00 a.m. to midnight daily. They are also proposing live entertainment (DJs, bands, guitarist, mariachi, etc.) indoors from 8:00 a.m. to 11:30 p.m. and outdoors from 8:00 a.m. to 10:00 p.m. daily.

The site, previously known as Westside Story, had an approved CUP in 2018 to sell beer and wine and have live entertainment from 10:00 a.m. to 10:00 p.m. daily. The use has since been discontinued.

Restaurants with on-site alcohol sales and live entertainment have been approved with varying hours throughout the city. Most recently, Mariscos El Tiburon (543 Highland Avenue) was approved for alcohol sales from 9:00 a.m. to 10:00 p.m. Sunday through Thursday and 9:00 a.m. to 11:00 p.m. Friday through Saturday and live entertainment was approved from 4:00 p.m. to 10:00 p.m. Friday & Saturday and 4:00 p.m. to 9:00 p.m. Sunday. This business was located in a more residential area than the subject restaurant, La Malquerida by Dolche.

In 2024, Mariscos La Capital was approved for alcohol sales from 8:00 a.m. to 11:30 p.m. daily, although the restaurant did not include live entertainment. In 2023, Friends of Friends (127 E 8th St,) was approved for on -site alcohol sales from 6:00 a.m. to 1:00 a.m. and live entertainment from 12:00 p.m. to 10:00 p.m. Sunday through Thursday and 12:00 p.m. to 11:30 p.m. Friday through Saturday. Similarly, in 2022, Market on 8 th was approved for on -site alcohol sales until

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1:00 a.m. daily and live entertainment until 11:30 p.m. on weekends. The approval for Market on 8th included live entertainment on the outdoor patio until 9:00 p.m. on weekends.

Based on the recently approved hours for restaurants with alcohol sales and live entertainment and the location of the restaurant, staff is recommending modified hours for live entertainment.

The hours for live entertainment proposed by the applicant are indoors from 8:00 a.m. to 11:30 p.m. and outdoors from 8:00 a.m. to 10:00 p.m. daily; However, staff is recommending indoor live entertainment from 10:00 a.m. to 11:30 p.m. and outdoor live entertainment from 10:00 a.m. to 10:00 p.m. in accordance with the noise ordinance. Proposed hours for alcohol sales are from 8:00 a.m. to midnight daily. These hours are consistent with previous approvals and the location of the restaurant. It should be noted that a Type 41 ABC license (On Sale Beer & Wine – Eating Place) requires that alcohol sales not exceed food sales. In addition, City Council 70 7 requires that alcohol must be purchased with food.

Concerns related to live entertainment usually involve noise impacts to surrounding non - commercial uses. While the subject property is in a primarily industrial area, conditions are included to address noise. Conditions include compliance with the limitations contained in Title 12 (Noise) of the Municipal Code and specified hours of operation.

Mailing
All property owners and occupants within a distance of 660 feet are required to be notified of a public hearing for alcohol-related CUP applications. Notice of this public hearing was sent to 55 occupants and owners. No public comment has been received as of the writing this report.

Community Meeting
Pursuant to Section 18.30.050 (C) of the National City Zoning Code, a community meeting was held Thursday, May 8th, 2025 at 6:00 p.m. at the subject restaurant. The meeting advertisement is attached (Exhibit H); No community members attended the meeting.

Distance Requirements - Chapter 18.030.050 (D) of the National City Zoning Code requires a 660-foot distance from any public school; there are no schools within 660 feet of the site. In addition, restaurants with greater than 30% of their area devoted to seating are exempt from this distance requirement. The property in question has approximately half of its floor area devoted to seating.

Coastal Zone
As previously noted, the business location is within the Coastal Zone. Under normal (non - discretionary permit) circumstances, no Coastal Development Permit (CDP) would be required.

However, the need for a discretionary approval in this case (CUP) also triggers a CDP. The only difference with this application would be the need for an additional finding related to consistency with the Local Coastal Plan, which is included with the attached Resolution (Exhibit A).

Alcohol Sales Concentration/Location
According to the California Department of Alcoholic Beverage Control (ABC), there are 17 on-site licenses in census tract 219, where a maximum of three are recommended. Therefore, the census tract is considered to be overconcentrated by ABC with regard to on-site alcohol sales outlets.

Census Tract 219 is the area west of National City Boulevard from Division Street to the southern City boundary. The site was previously approved for an on-site license.

Police Department (PD)
The ABC Risk Assessment provid ed by PD allocated a total of 15 points, which places it in the Medium Risk category (Medium Risk is considered 13 -18 points). The Risk Assessment is included as Exhibit F. The assessment indicted a concern related to lighting. A condition has been added to address the comment.

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Institute for Public Strategies (IPS)
Comments were received from IPS with the following considerations:

1. Require that staff and management attend an in -person LEAD training or an in -person Responsible Beverage Sales and Service tr aining from an ABC -authorized provider. In- person trainings offer interactive and hands -on learning which are recommended over online trainings.

2. To prevent the establishment from transforming into a night club, which could increase crime and nuisance problems, require that the restaurant always provide breakfast, lunch, and dinner through 12:00 a.m. daily.

3. Require that the establishment must submit receipts as evidence of food sales offered along with alcohol before annual renewal of license.

Standard conditions of approval are included in the report in compliance with City Council Policy 707. IPS comments are included as Exhibit G. Conditions of approval are included that restrict the hours of alcohol sales and live entertainment.

Findings for Approval
The following are the required findings in the attached draft resolution:

1. Size and Shape: The site for the proposed use is adequate in size and shape, because there will be no physical change to the existing business as a result of this approval that would expand the current use beyond its current capacity. Alcohol sales and live entertainment would be incidental the primary use of food service

2. Access: The site has sufficient access to streets and highways that are adequate in width and pavement type to carry the quantity and quality of traffic generated by the proposed use, because there will be no physical change to the existing business as a result of this approval that would impact adjacent streets. The proposal involves an existing commercial space and no expansion of the building is proposed.

3. No Adverse Effects: The proposed use will not have an adverse effect upon adjacent or abutting properties, because the project is a use consistent with the Medium Manufacturing (MM) zone and the proposed use will be subject to conditions that limit the sale of alcohol and live entertainment. Beer and wine will only be available with the sale of food. In addition, all staff members serving alcohol are required to receive RBSS training. Live entertainment will be limited to acceptable hours and to levels of noise that will not disturb surrounding residential uses.

4. Public Convenience and Necessity: The proposed use is deemed essential and desirable to the public convenience or welfare, because the restaurant, a permitted use in the Medium Manufacturing zone, will benefit from the extended sale of alcohol and live entertainment by providing for a wider diversity of businesses that add charm to the area.

5. Local Coastal Program: The granting of this Conditional Use Permit is consistent with and implements the Certified Local Coastal Program, because the project is located within an area generally exempt from a Coastal Development Permit; involves a service use, which is conditionally allowed in the MM-CZ zone; and will not prohibit coastal access or obstruct views.

6. California Environmental Quality Act (CEQA): The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA) and has been determined to be categorically exempt from environmental review pursuant to Class 1, Section 15301 (Existing Facilities) for which a Notice of Exemption will be filed subsequent

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to approval of this Conditional Use Permit. The reason for the exemption is that the use is proposed within an existing commercial building, and the restaurant is an allowed use in the Medium Manufacturing zone.

Findings for Denial
The following are findings for denial:

1. Granting the permit would constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or impro vements in the vicinity and zone in which the property is located, because the addition of on -site alcohol sales and live entertainment may increase the propensity for over-consumption of alcohol and increase the potential for impacts to the surrounding area.

2. The proposed use is not deemed essential to the public necessity, as there are already 17 other outlets in the same census tract that serve alcohol.

3. Based on the above findings, public convenience and necessity will not be served by a proposed use of the property for on-site sale of alcoholic beverages and live entertainment pursuant to law.

Conditions of Approval
Standard Conditions of Approval have been included with this permit as well as conditions specific to on -site alcohol sales per Council Policy 707 (hours of operation, employee training, and accessory sales, etc.). Conditions related to live entertainment have also been included.

Summary
The proposed use is consistent with the General Plan due to alcohol sales for on-site consumption and live entertainment being conditionally-allowed uses in Medium Manufacturing zone; alcohol sales and live entertainment will be accessory to the existing restaurant use in an established industrial area; beer and wine will only be available with the sale of food; the census tract in which the restaurant is located is considered over-concentrated with regard to on-sale alcohol licenses; and the Police Department has classified the establishment as Medium Risk.

Options

1. A pprove 2025-12 CUP subject to the conditions included in the Resolution and based on the findings included in the Resolution, or findings to be determined by the City Council; or,

2. Deny 2025-12 CUP based on the attached findings, or findings to be determined by the City Council; or,

3. Continue the item to a specific date in order to obtain additional information.

FINANCIAL STATEMENT:

An application fee of $3,700 was paid with the submittal of the subject CUP. Fees are anticipated to cover the cost of staff review time and processing of the permit.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Balanced Budget and Economic Development

ENVIRONMENTAL REVIEW:

This is a project under CEQA subject to a Categorical Exemption. Existing Facilities. CCR 15301(c).

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PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Planning Commission Resolution 2025-07
Exhibit B – Overhead
Exhibit C – Applicant’s Plans
Exhibit D – Public Hearing Notice
Exhibit E – Census Tract & Police Beat Maps
Exhibit F – Police Department Risk Assessment
Exhibit G – IPS Comments
Exhibit H – Community Meeting Information
Exhibit I – Public Comment
Exhibit J – Draft Council Resolution

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ATTACHMENT 2

2025-12 CUP CDP – 1524 McKinley Avenue – Overhead

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TITLE SHEET

MARIMAR
1524 McKinley Ave.San Diego CA.91950
PLAN FILE NUMBER_A________DATE_JOB NUMBER_005 _MCKINLEY DRAWNBY_ SHEET NAME + No._
REVISIONS_

04.02.2025

VICINITY MAP

SCOPE OF WORKDEVELOPMENT SUMMARY
____
INDEX

LEGENDBUILDING CODE DATA

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FLOOR PLAN

MARIMAR
1524 McKinley Ave.San Diego CA.91950
PLAN FILE NUMBER_A________DATE_JOB NUMBER_005 _MCKINLEY DRAWNBY_ SHEET NAME + No._
REVISIONS_

04.02.2025

ALCOHOL

STORAGE

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CITY OF NATIONAL CITY

NOTICE OF PUBLIC HEARING

NOTICE IS HEREBY GIVEN that the City Council of the City of National City will hold a Public Hearing after the hour of 6:00 p.m., Tuesday, September 2, 2025, in the City Council Chambers, Civic Center, 1243 National City Blvd., National City, CA., to consider:

DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS 1 OF THE CEQA GUIDELINES SECTION 15301 (EXISTING FACILITIES) FOR A COASTAL

DEVELOPMENT PERMIT AND CONDITIONAL USE PERMIT FOR THE SALE OF BEER AND WINE FOR ON-SITE CONSUMPTION (ABC TYPE-41 LICENSE) AND

LIVE ENTERTAINMENT AT AN EXISTING RESTAURANT (LA MALQUERIDA BY DOLCHE) LOCATED AT 1524 MCKINLEY AVENUE IN THE COASTAL ZONE.

CASE FILE NO.: 2025-12 CUP CDP
APN: 557-055-08

Additionally, the applicant i s requesting live ente rtainment indoors from 8: 00 a.m. to 11:30 p.m. and outdoors from 8:00 a.m. to 10:00 p.m. daily. A determination that the project is categorically exempt from the California Environmental Qualit y Act (CEQA) pursuant to Class 1, Section 15301 (Existing Facilities) will also be considered.

Anyone interested in this matter may appear at the above time and place and be heard.

The City Council will also accept written public comments regarding this matter. Written comments or testimony fr om the public must be submitted via e -mail to [email protected] by 2:00 P.M. on the day of the City Council Meeting. For information on registering to pr ovide public comment via Zoom pl ease visit the City Clerk’s webpage at https://www.nationalcityca.gov/government/city-clerk/public- comments

If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice via e- mail, or through written corr espondence delivered to the undersigned prior to the Public Hearing.

Shelley Chapel, MMC, City Clerk
Published in the Star News: Friday, August 22, 2025

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Sources: Esri, HERE, DeLorme, TomTom, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo, MapmyIndia, © OpenStreetMap contributors, and the GIS User Community
CensusTracts 2010
August 25, 2014
0 0.75 1.50.375 mi
0 1 20.5 km
1:45,467
ATTACHMENT 5

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City of National City
Beat 24
Source: Microsoft Mappoint
NCPD CAU, 4/18/07

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Notes:

NATIONAL CITY POLICE DEPARTMENT

ALCOHOL BEVERAGE CONTROL

RISK ASSESSMENT

DATE:

BUSINESS NAME:

ADDRESS:

OWNER NAME: DOB:

OWNER ADDRESS:
(add additional owners on page 2)

I. Type of Business
 Restaurant (1 pt)
 Market (2 pts)
 Bar/Night Club (3 pts)
Tasting Room (1pt)

II. Hours of Operation
 Daytime hours (1 pt)
 Close by 11pm (2 pts)
 Close after 11pm (3 pts)

III. Entertainment
 Music (1 pt)
 Live Music (2 pts)
 Dancing/Live Music (3 pts)
No Entertainment (0 pts)

IV. Crime Rate
 Low (1 pt)
 Medium (2 pts)
 High (3 pts)

V. Alcohol Businesses per Census Tract
 Below (1 pt)
 Average (2 pts)
 Above (3 pts)

Revised: 8/16 1 of 2
04/17/25
La Malquerida By Dolche
1524 McKinley Avenue, National City, CA 91950
Elena Gallardo
10/17/80
1933 Meeks Bay Drive, Chula Vista, CA 91913
There is (17) active on sale licenses in tract 219
Census Tract #219
There are (3) on sale licenses authorized in tract 219
There are (7) active off sale licenses in tract 219
There are (1) off sale licenses authorized in tract 219 ✔
✔
✔
✔
✔Page 492 of 737
National City Police Department ABC Risk Assessment

VI. Calls for Service at Location (for previous 6 months)  Below (1 pt)
 Average (2 pts)
 Above (3 pts)

VII. Proximity Assessment (1/4 mile radius of location)  Mostly commercial businesses (1 pt)
 Some businesses, some residential (2 pts)
 Mostly residential (3 pts)

VIII. Owner(s) records check
 No criminal incidents (0 pts)
 Minor criminal incidents (2 pts)
 Multiple/Major criminal incidents (3 pts)

OWNER NAME: DOB:

OWNER ADDRESS:

OWNER NAME: DOB:

OWNER ADDRESS:

Recommendation:

Completed by: Badge ID:

Revised: 8/16
2 of 2
Low Risk ( 12pts or less)
Medium Risk (13 – 18pts)
High Risk (19 – 24pts)

Total Points
15 This business assess at a medium risk and is deserving of such a rating.

This census tract is over populated with both on and off sales businesses.

This business is intermingled with residential and commercial properties. Late hour music/live entertainment daily until 1130PM could cause a problem for residents in the area.

There is minimal lighting during hours of darkness at the business. The business should better illuminate the front of business due to its late hours of operations for both patrons and the residents.

National City should consider better street lighting and a tree maintenance plan in the area.

Camacho
449
✔
✔
✔

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Funded by the San Diego County Health and Human Services Agency 8885 Rio San Diego Drive #117  San Diego, California, 92108 Phone: 619.476-9100  Fax: 619.476-9104

www.publicstrategies.org

Environmental Scan
Conditional Use Permit (CUP) for alcohol sales (Beer & Wine) and live entertainment at an existing restaurant
1524 McKinley Ave., National City, CA 91950
Conducted: April 22, 2025

Photo of the proposed location
An environmental scan was conducted at 1 p.m. on Tuesday, April 22, 2025, for alcohol sales (Beer & Wine) and live entertainment at an existing restaurant. The location is between Handy Metal Mart to the south and Walashek Industrial & Marine Inc. to the north. It is surrounded by numerous other similar commercial uses. The restaurant was closed at the time the environmental scan was conducted.

Proposed hours
Live Entertainment: 10 a.m. to 11:30 p.m. daily
Alcohol Sales: 8 a.m. to 12 a.m. daily

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Funded by the San Diego County Health and Human Services Agency 8885 Rio San Diego Drive #117  San Diego, California, 92108 Phone: 619.476-9100  Fax: 619.476-9104

www.publicstrategies.org

During a scan of the business and premises, the following was noted:
• A small residential structure was approximately 150 feet away. • A Circle K service station was approximately 500 feet away. • A multiple-story apartment complex, McKinley Apartments, approximately 1,000 feet away on McKinley Avenue, with graffiti on the fence between these two locations.

Youth Sensitive Areas/Other Vulnerable Locations
Kimball Elementary School, approximately 1,500 feet away

Churches
St. Anthony of Pardua, Missionary Church of God, and First Christian Spiritualist, (each approximately 1,500 feet away) are the closest ones to this location.

Crime Rate
A request for crime-related information from personnel within the City of National City Police Department should determine whether existing violations against the property or applicant or incidents in the area have occurred that would discourage allowing live entertainment, extended hours and alcohol sales.

Online Reviews

• Lack of parking and large crowds during breakfast hours when the restaurant is currently open (8 a.m. – 2 p.m.)

Outlet Density
Based on Centers for Disease Control guidelines, alcohol density is defined as the average distance between a person and their closest alcohol retailer. In the map below, the darker the census tract, the less distance a person has to travel to their closest alcohol retailer.

IPS has begun utilizing the following scale to more clearly define outlet density.

Least Dense (lightest color)
Somewhat Dense
Dense
Very Dense
Extremely Dense (darkest color)

The proposed location is defined as “Very Dense.”

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Funded by the San Diego County Health and Human Services Agency 8885 Rio San Diego Drive #117  San Diego, California, 92108 Phone: 619.476-9100  Fax: 619.476-9104

www.publicstrategies.org

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Funded by the San Diego County Health and Human Services Agency 8885 Rio San Diego Drive #117  San Diego, California, 92108 Phone: 619.476-9100  Fax: 619.476-9104

www.publicstrategies.org

Considerations
The following are considerations:

1. Require that staff and management attend an in-person LEAD training or an in-person RBS training from an ABC-authorized training provider. In-person trainings offer interactive and hands-on learning which are recommended over online trainings.

3. Require that the establishment must submit receipts as evidence of food sales offered along with alcohol before annual renewal of license.

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April 30, 2025
Dear Resident / Business Owner:

You are cordially invited to a?end a community meeAng regarding a CondiAonal Use Permit (CUP) with the city of NaAonal City by Elena Gallardo (Doing Business As – La Malquerida By Dolche) for a California Department of Alcoholic Beverage Control (ABC) Type-41 license (beer and wine) to compliment their exisAng restaurant.

THURSDAY , MAY 8, 2025
6:00pm to 7:00pm
La Malquerida By Dolche
1524 McKinley Avenue
NaAonal City, CA 91950

The applicant will provide an overview of their request and have a quesAon and answer session shortly therea^er.

If you have any quesAons please feel free to contact Marco Cortes at (619) 852-4690 (or at [email protected]).

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640 WEST BEECH STREET, STE. 3-B
SAN DIEGO, CA 92101
619-852-4690
May 12, 2025
Sophia Depew
Planning Technician
Community Development Department
City of Na@onal City
1243 Na@onal City Boulevard
Na@onal City, CA 91950
RE: ELENA GALLARDO (DBA – LA MALQUERIDA BY DOLCHE) REPORT FOR COMMUNITY MEETING; Ms. Depew:

On behalf of Elena Gallardo (DBA – La Malquerida By Dolche), I am submiTng a summary of the Community Mee@ng that was held on Thursday, May 8, 2025 from 6:00pm to 7:00pm at La Malquerida By Dolche located at 1524 McKinley Avenue, Na@onal City, CA 91950.

The applicant and I were present and began the mee@ng at 6:00pm. Unfortunately, nobody aZended the mee@ng and the mee@ng was adjourned at 7:00pm.

Thank you for your considera@on, if I can be of further assistance please feel free to contact me directly at (619) 852-4690.

Kind regards,
Marco Polo Cortes Marco Polo Cortés
President

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From: Ted Godshalk
To: Planning Commission
Subject: Public Comment for Planning Commission item #5 for July 21, 2025 from Mr. Ted Godshalk Date: Monday, July 21, 2025 7:43:55 AM
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders.

Public Comment for Planning Commission item #5 for July 21, 2025 from Mr. Ted Godshalk Commissioners,
The application for a CEQA exemption, a Coastal Development Permit and a Conditional Use Permit for La Malquerida on McKinley Avenue should be denied by this Planning Commission.

The proposed use is located in a census tract (219) that already has 17 liquor sales outlets while only three are recommended. According to the California Department of Alcoholic Beverage Control this is considered “overconcentrated,” and as such there are risks to the community.

The property was apparently bought as a speculative venture with the desire to have cannabis and/or alcohol sales as the main revenue generator. The proposed use is not essential or desirable.

The proof of this is the fact seen in the lack of profitable business activity or a community serving establishment for a long, recent time period.

The addition of alcohol and live entertainment will not add “charm,” as claimed in the staff report. The building is inadequate in shape and size for this kind of business. The street is a dark and difficult to access area as noted by the National City Police Department. The building has a deficiency of security features including lighting and multiple exits in the case of emergencies. No adjustment of hours or promises from the operator can overcome these findings.

Lastly, I believe you should look ahead and come to the conclusion that this is a conversion of the property to a BAR and that alcohol sales and live entertainment will not be incidental to the food service, but instead will become the main attraction. National City may need more small businesses, but this type, in this location, does not serve the greater public needs, and in fact, will likely require more public safety service calls.

Please deny this application.

Thank you,
Ted Godshalk
ITEM 5 PUBLIC COMMENT

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RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,

DEVELOPMENT PERMIT AND CONDITIONAL USE PERMIT FOR BEER AND WINE SALES (ABC TYPE -41) AND LIVE ENTERTAINMENT AT AN EXISTING RESTAURANT (LA MALQUERIDA BY DOLCHE) LOCATED AT 1524 MCKINLEY AVENUE IN THE COASTAL ZONE. CASE FILE NO. 2025-12 CUP CDP APN: 557-055-08.

WHEREAS, the City Council of the City of National City considered a Coastal Development Permit and Conditional Use Permit for on -site beer and wine sales and live entertainment at an existing restaurant (La M alquerida by Dolche) located at 1524 McKinley Avenue. At a duly advertised public hearing held on September 2, 2025, at which time oral and documentary evidence was presented; and,

WHEREAS, at said public hearing the City Council considered the staff rep ort contained in Case File No. 2025-12 CUP maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and,

WHEREAS, the Planning Commission of the City of National City considered the Conditional Use Permit application at a duly advertised public hearing held on July 21, 2025, at which time the Commission recommended approval of the Conditional Use Permit; and,

WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and,

WHEREAS, the action hereby t aken is found to be essential for the preservation of the public health, safety and general welfare.

NOW, THEREFORE, THE CITY COUNCIL OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the evidence presented to the City Council at the public hearing held on September 2, 2025, support the following findings:

1. That the site for the proposed use is adequate in size and shape, because there will be no physical change to the existing business as a result of this approval that would expand the current use beyond its current capacity. Alcohol sales and live entertainment would be incidental the primary use of food service.

2. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the quantity and quality of traffic generated by the proposed use, because there will be no physical change to the existing business as a result of this approval that would impact adjacent streets. The proposal involves an existing commercial space and no expansion of the building is proposed.

3. That the proposed use will not have an adverse effect upon adjacent or abutting properties, because the project is a use consistent with the Medium Manufacturing (MM) zone and the proposed use will be subject to conditions that limit the sale of alcohol and live entertainment. Beer and wine will only be available with the sale of food. In addition, all staff members serving alcohol are required to receive RBSS training. Live entertainment will be limited to acceptable hours and to levels of noise that will not disturb surrounding residential uses.

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4. That the proposed use is deemed essential and desirable to the public convenience or welfare, because the restaurant, a permitted use in the Medium Manufacturing zone, will benefit from the extended sale of alcohol and live entertainment by providing for a wider diversity of businesses that add charm to the area.

5. That the granting of this Conditiona l Use Permit is consistent with and implements the Certified Local Coastal Program, because the project is located within an area generally exempt from a Coastal Development Permit; involves a service use, which is conditionally allowed in the MM-CZ zone; and will not prohibit coastal access or obstruct views.

6. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA) and has been determined to be categorically exempt from environmental review pursuant to Cla ss 1, Section 15301 (Existing Facilities) for which a Notice of Exemption will be filed subsequent to approval of this Conditional Use Permit. The reason for the exemption is that the use is proposed within an existing commercial building and the restaurant is a permitted use in the Medium Manufacturing zone.

7. Based on findings 1 through 6 above, public convenience and necessity will be served by a proposed use of the property for on -site sales of alcoholic beverages and live entertainment in accordance with applicable law and the recommended condition s. The use, as proposed and conditioned, will operate in harmony with surrounding uses, will not cause a nuisance, and will benefit the community looking for a quality restaurant experience.

Section 2: That the application for Conditional Use Permit is approved subject to the following conditions:

General

1. This Conditional Use Permit authorizes the sale of beer and wine for on-site consumption and live entertainment at an existing restaurant ( La Malquerida by Dolche) located at 1524 McKinley Avenue. Plans submitted for permits associated with this project shall conform to Exhibit A, Case File No. 2025-12 CUP CDP, dated 05/06/2025.

2. Before this Conditional Use Permit shall become effective, the applicant and the property owner shall both sign and have notarized an Acceptance Form, provided by the Planning Division, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant or owner shall also submit evidence to the satisfaction of the Planning Division that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant or owner shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or est ate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Director of Community Development prior to recordation.

3. This permit shall become null and void at such time as there is no longer a Type 41 California Department of Alcoholic Beverage Control license associated with the property.

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4. This permit shall become null and void if not exercised within one year after adoption of the resolution of approval unless extended according to procedures s pecified in the Municipal Code.

5. This permit shall expire if the use authorized by this resolution is discontinued for a period of 12 months or longer. This permit may also be revoked, pursuant to provisions of the Land Use Code, if discontinued for any lesser period of time.

6. This Conditional Use Permit may be revoked if the operator is found to be in violation of any Conditions of Approval or applicable law.

7. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Department.

Planning

8. No alcohol sales and consumption practices shall be permitted until the applicant has been issued a Type 41 license from the California Department of Alcoholic Beverage Control.

9. All sellers and servers of alcohol shall receive Responsible Beverage Service and Sa les (RBSS) training, including all owners, and managers. The RBSS training must be certified by the Department of Alcoholic Beverage Control (ABC). Proof of completion of an approved RBSS program must be provided prior to issuance of a city business license. As part of the RBSS training, the Permittee shall make available a domestic violence training session as provided by the Institute of Public Strategies.

10. The sale of alcoholic beverages shall only be permitted between the hours of 8:00 a.m. and 10:00 p.m. daily.

11. Indoor live entertainment shall only be permitted between the hours of 10:00 a.m. to 11:30 p.m. daily.

12. Outdoor live entertainment shall only be permitted between the hours of 10:00 to 10:00 p.m. daily.

13. The sale of alcohol shall not exceed the sal e of food. With the annual renewal of the City business license, the business proprietor shall submit a statement clearly indicating total alcoholic beverage sales and total food sales. Said statement shall be subject to audit and verification by the Plann ing Manager or designee or other employees of t he City, who are authorized to examine, audit and inspect such books and records of the license, as may be necessary in their judgment to verify that the sale of alcohol does not exceed the sale of food. All i nformation obtained by an investigation of records shall remain confidential.

14. Alcohol shall be available only in conjunction with the purchase of food.

15. The sale of alcoholic beverages for off-site consumption is not permitted at this location.

16. Live entertainment shall be conducted as an accessory use to the restaurant for the enjoyment of its customers. No advertisement promoting a particular performer or event shall be distributed outside the restaurant.

17. All entry and exit doors, including windows, shall remain closed during inside live entertainment activities.

18. All activities shall comply with the noise limits contained in Table III of Title 12 of the National City Municipal Code.

19. The occupancy of the building, inclusive of patrons, staff, and entertaine rs, shall not exceed the occupancy load determined by the Building Division.

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20. Outdoor areas, including the front of the building, shall be well lit so as to provide safe pedestrian access and to eliminate dark areas.

21. The operator of the business shall maintain an active business license and ensure that the business license is renewed annually.

Police

22. The permittee shall comply with all applicable law, including, but not limited to the regulatory provisions of the Business and Professions Code that pertain to the sale, advertising, or display of alcoholic beverages.

The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any cla im related to this indemnification. In the event of such election, the Applicant shall pay all of the costs related thereto, including without limitation reasonable attorney's fees and costs. In the event of a disagreement between the City and Applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter. However, the Applicant shall not be required to pay or perform any settlement unless such settlement is approved by the Applicant.

Section 3: That the City Council herby approves the Coastal Development Permit and Conditional Use Permit for beer and wine sales (ABC Type-41) and live entertainment at an existing restaurant (La Malquerida By Dolche) located at 1524 McKinley Avenue in the Coastal Zone.

Section 4: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of orginal Resolutions.

PASSED and ADOPTED this 2nd day of September, 2025.
__________________________
Ron Morrison, Mayor

ATTEST:
_____________________________
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
_____________________________
Barry J. Schultz.

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City Attorney

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AGENDA REPORT

Department: Planning
Prepared by: Sophia Depew, Assistant Planner
Meeting Date: Tuesday, September 2, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Conditional Use Permit (CUP) for On -Site Beer and Wine Sales and Live Entertainment at an Existing Restaurant (Sushi N’ Gone) Located at 1539 E 8th Street.

RECOMMENDATION:

Staff Recommends Adoption of the Resolution Entitled: “ A Resolution of the City Council of the City of National City, California, Determining that the Project is Categorically Exempt from the California Environmental Quality Act (CEQA) Under Class 1 of the CEQA Guidelines Section 15301 (Existing Facilities) and Approving a Conditional Use Permit for Beer and Wine Sales (ABC Type-41) and Live Entertainment at an Existing Restaurant (Sushi N’ Gone) Located at 1539 East 8th Street. Case File No. 2025-11 CUP, APN: 557-102-19.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

The sale of alcoholic beverages shall only be permitted between the hours of 10:00 a.m. to 10:00 p.m. Monday through Friday and 8:00 a.m. to 11:00 p.m. Saturday through Sunday.

The City Council reviewed the Planning Commission Notice of Decision at the Council meeting of August 19, 2025 and voted to hold the item for a public hearing.

EXPLANATION:

Executive Summary
The operator of Sushi N’ Gone restaurant has applied for a California Department of Alcoholic Beverage Control (ABC) Type 41 license to offer on -site beer and wine sales. The applicant is proposing alcohol sales from 8:00 a.m. to midnight daily. The applicant is also requesting live entertainment from 11:00 a.m. to 10:00 p.m. Sunday through Thursday and from 11:00 a.m. to 11:00 p.m. Friday through Saturday.

Planning Commission Action
The Planning Commission held a public hearing on July 21, 2025 . No public comments were provided for the item. Ultimately, the Planning Commission recommended approval of the CUP with modified conditions by unanimous vote of those members present (five). One commissioner was absent.

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Site Characteristics
Sushi N’ Gone is a 2,445 square-foot restaurant located on the northwest corner of East 8th Street and Palm Avenue within the Major Mixed-Use Corridor (MXC-2) zone. The restaurant is the only structure on the 12,150 square foot corner lot. Surrounding the restaurant is a mix of commercial and residential uses. The properties directly abutting the restaurant are commercial offices and retail suites. The closest residences are located northwest of the property but are separated by a substantial grade change.

The restaurant dining area is located on the south side of restaurant, closest to East 8 th Street, while the kitchen and restrooms are located on the north side of the building, closest to the neighboring homes. The dining area has 52 seats and a small area dedicated for live entertainment on the southwest corner of the building, closest to the street. Additionally, there are no windows or doors near the proposed live entertainment area.

Proposed Use
The applicant is proposing beer and wine sales (ABC Type -41) and live entertainment at the restaurant. Proposed hours for alcohol sales are from 8:00 a.m. to midnight daily. Proposed hours for live entertainment are from 11:00 a.m. to 10:00 p.m. Sunday through Thursday and from 11:00 a.m. to 11:00 p.m. Friday through Saturday.

Analysis
Section 18.30.050 of the Land Use Code allows for on -site alcohol sales and live entertainment with an approved Conditional Use Permit (CUP). Additional requirements for alcohol CUPs include expanded notification, a community meeting, and distance requirements. City Council Policy 707 also regulates alcohol sales in the City.

Hours of Operation for Alcohol Sales
Sushi N’ Gone is proposing to sell beer and wine from 8:00 a.m. to midnight daily. They are also proposing live entertainment (DJs, bands, guitarist, etc.) from 11:00 a.m. to 10:00 p.m. Sunday through Thursday and from 11:00 a.m. to 11:00 p.m. Friday through Saturday.

The site, previously known as KeBURROS, had an approved CUP in 2021 to sell beer and wine from 7:00 a.m. to 12:00 a.m. daily. While the use was discontinued, the previously approved hours exceed the hours proposed by the current business. However, the previous CUP did not include live entertainment.

Restaurants with on-site alcohol sales and live entertainment have been approved with varying hours throughout the City. Most recently, Mariscos El Tiburon (543 Highland Avenue) was approved for alcohol sales from 9:00 a.m. to 10:00 p.m. Sunday through Thursday and 9:00 a.m. to 11:00 p.m. Friday & Saturday and live entertainment from 4:00 p.m. to 10:00 p.m. Friday & Saturday and 4:00 p.m. to 9:00 p.m. Sunday. This business was located in closer proximity to residential units than subject restaurant, Sushi N’ Gone.

In 2024, Mariscos La Capital was approved for alcohol sales from 8:00 a.m. to 11:30 p.m. daily, although the restaurant did not include live entertainment. In 2023, Friends of Friends (127 E 8th St,) was approved for on -site alcohol sales from 6:00 a.m. to 1:00 a.m. and live entertainment from 12:00 p.m. to 10:00 p.m. Sunday to Thursday and 12:00 p.m. to 11:30 p. m. Friday and Saturday. Similarly, in 2022, Market on 8th was approved for on-site alcohol sales until 1:00 a.m. daily and live entertainment until 11:30 p.m. on weekends.

Based on the recently approved hours for restaurants with alcohol sales and live en tertainment and the location of the restaurant, staff is amenable to the hours proposed by the applicant. The Planning Commission found, however, that the shorter hours were more appropriate for this location. Proposed hours for alcohol sales are from 8:00 a.m. to midnight daily. Proposed hours

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for live entertainment are from 11:00 a.m. to 10:00 p.m. Sunday through Thursday and from 11:00 a.m. to 11:00 p.m. Friday through Saturday. These hours are consistent with previous approvals.

It should be noted that a Type 41 ABC license (On Sale Beer & Wine – Eating Place) requires that alcohol sales not exceed food sales. In addition, City Council 707 requires that alcohol must be purchased with food.

Concerns related to live entertainment usually involve noise im pacts to surrounding non - commercial uses. While the subject property is separated by a grade change to the residential properties, conditions are included to address noise. Conditions include requiring doors and windows to remain closed during inside live entertainment activities, as well as compliance with the limitations contained in Title 12 (Noise) of the Municipal Code.

Mailing
All property owners and occupants within a distance of 660 feet are required to be notified of a public hearing for alcohol-related CUP applications. Notice of this public hearing was sent to 341 occupants and owners. No public comment has been received as of the writing this report.

Community Meeting
Pursuant to Section 18.30.050 (C) of the National City Zoning Code, a community meeting was held Wednesday, May 7th, 2025 at 6:00 p.m. at the subject restaurant. The meeting advertisement is attached (Exhibit H); No community members attended the meeting.

Distance Requirements - Chapter 18.030.050 (D) of the National Ci ty Zoning Code requires a 660-foot distance from any public school; there are no schools within 660 feet of the site. In addition, restaurants with greater than 30% of their area devoted to seating are exempt from this distance requirement. The property in question has approximately 50% of its floor area devoted to seating.

Alcohol Sales Concentration/Location
According to the California Department of Alcoholic Beverage Control (ABC), there are two on - site licenses in census tract 118.02, where a maximum of nine are recommended. Therefore, the census tract is not considered to be over concentrated by ABC with regard to on-site alcohol sales outlets. Even with the addition of another license, the tract is well below the recommended number. Census Tract 118.02 is the area from East 8th Street north to the City boundary and from Highland Avenue east to Palm Avenue.

Police Department (PD)
The ABC Risk Assessment provided by PD allocated a total of 12 points, which places it in the Low-Risk category (Low Risk is considered 12 points or less). The Risk Assessment is included as Exhibit F

Institute for Public Strategies (IPS)
Comments were received from IPS with the following considerations:

1. Require that staff and management attend an in -person LEAD training or an in -person Responsible Beverage Sales and Service training from an ABC -authorized provider. In- person trainings offer interactive and hands -on learning which are recommended over online trainings.

2. To prevent the establishment from transforming into a night club, which could increase crime and nuisance problems, require that the restaurant always provide lunch and dinner through 12:00 a.m. daily.

3. Require that the establishment must submit receipts as evidence of food sales offered along with alcohol before annual renewal of license.

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Findings for Approval
The following are the required findings in the attached draft resolution:

1. Allowable Use: Alcohol sales and live entertainment are allowable within Major Mixed-Use Corridor zone, pursuant to a CUP, and the proposed use meets the required guidelines in the Land Use Code for alcohol sales and live entertainment, as discussed in the staff report. The use is incidental to the existing restaurant use in a mixed-use area.

2. General Plan Consistency : Alcohol sales and live entertainment are permitted uses, subject to a CUP, by the Land Use Code, which is consistent with the General Plan. In addition, a restaurant with alcohol sales and live entertainment is consistent with the Major Mixed-Use Corridor zone land use designation and the Community Character element of the General Plan.

3. Compatibility, LUC, and Traffic: No expansion of the building is proposed. The proposal involves an existing commercial space, which was previously analyzed for traffic impacts when it was constructed. The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints.

The proposed uses would be incidental to the primary use of food service.

4. No Nuisance: The proposed use will be subject to conditions that limits the sale of beer and wine as well as the hours that it will be available. Beer and wine will only be available with the sale of food. In addition, all staff members serving alcohol are required to receive RBSS training. Live entertainment will be limited to acceptable hours and to levels of noise that will not disturb nearby residential uses.

5. California Environmental Quality Act (CEQA): The proposed project has been reviewed in compliance with the C alifornia Environmental Quality Act (CEQA) and has been determined to be categorically exempt from environmental review pursuant to Class 1, Section 15301 (Existing Facilities) for which a Notice of Exemption will be filed subsequent to approval of this Conditional Use Permit. The reason for the exemption is that the use is proposed within an existing commercial building, and the use is similar to other commercial uses in the area, which are permitted in Major Mixed-Use Corridor zone.

6. Public Convenience and Necessity: The restaurant, a permitted use in the Major Mixed-Use Corridor zone, will benefit from the sale of alcohol and live entertainment by providing for a wider diversity of businesses that add character to the area.

Summary
The proposed use is consistent with the General Plan due to alcohol sales for on-site consumption and live entertainment being conditionally -allowed uses in Major Mixed -Use Corridor zone; alcohol sales and live entertainment wi ll be accessory to the existing restaurant use in an established commercial area; beer and wine will only be available with the sale of food; the census tract in which the restaurant is located is not considered over-concentrated with regard to on-sale alcohol licenses; and the Police Department has classified the establishment as Low Risk.

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Options

1. A pprove 2025-11 CUP subject to the conditions included in the Resolution and based on the findings included in the Resolution, or findings to be determined by the City Council; or,

2. Deny 2025-11 CUP based on the attached findings, or findings to be determined by the City Council; or,

3. Continue the item to a specific date in order to obtain additional information.

FINANCIAL STATEMENT:

An application fee of $3,700 was paid with the submittal of the subject CUP. Fees are anticipated to cover the cost of staff review time and processing of the permit.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Balanced Budget and Economic Development

ENVIRONMENTAL REVIEW:

This is a project under CEQA subject to a Categorical Exemption. Existing Facilities. CCR 15301(c).

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Planning Commission Resolution 2025-06
Exhibit B – Overhead
Exhibit C – Applicants Plans
Exhibit D – Public Hearing Notice
Exhibit E – Census Tract & Police Beat Maps
Exhibit F – Police Department Risk Assessment
Exhibit G – IPS Comments
Exhibit H – Community Meeting Information
Exhibit I – Draft Council Resolution

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RESOLUTION NO. 2025-06

A RESOLUTION OF THE PLANNING COMMISSION

OF THE CITY OF NATIONAL CITY, CALIFORNIA DETERMINING THAT THE

PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS 1 OF THE CEQA GUIDELINES SECTION 15301 (EXISTING FACILITIES) AND CONDITIONAL USE PERMIT FOR BEER AND WINE SALES (ABC TYPE-41) AND LIVE ENTERTAINMENT AT AN EXISTING RESTAURANT (SUSHI N’ GONE) LOCATED AT 1539 EAST 8TH STREET.

CASE FILE NO. 2025-11 CUP
APN: 557-102-19
WHEREAS, the Planning Commission of the City of National City considered a Conditional Use Permit for on-site beer and wine sales and live en tertainment at an existing restaurant (Sushi N’ Gone) located at 1539 E 8 th Street. At a duly advertised public hearing held on July 21, 2025, at which time oral and documentary evidence was presented; and,
WHEREAS, at said public hearing, the Planning Commission considered the staff report contained in Case File No. 2025-11 CUP maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law.

NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of National City, Cal ifornia, that the testimony and evidence presented to the Planning Commission at the public hearing held on July 21, 2025, support the following findings:

1. The proposed use i s allowable within the applicable zoning district pursuant to a Conditional Use Pe rmit and complies with all other applicable pr ovisions of the Land Use Code because alcohol sales and live entertainment are a llowable within the Major Mixed-Use Corridor zone, pursuant to a CUP, and the proposed use meets the required g uidelines in the La nd Use Code for alcohol sales and live entertainment, as discussed in the staff report. It is incidental to the existing restaurant use in a mixed-use area.

2. The proposed use is consistent with the General Plan and any applicable specific plan, because the Land Use Code permits alcohol sales and live entertainment, subject to a CUP , which is consistent with the General Plan. In addition, a restaurant with alcohol sales and live entertainment is consistent w ith the M ajor

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ATTACHMENT 2

2025-11 CUP – 1539 E 8th Street – Overhead

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TITLE SHEET

MARIMAR
1539 E 8TH STNATIONAL CITY, CA. 91950
PLAN FILE NUMBER_A________DATE_JOB NUMBER_DRAWN BY_
SHEET NAME + No._
REVISIONS_

PROJECT NUMBERTBD

03.19.2025

VICINITY MAP

SCOPE OF WORKDEVELOPMENT SUMMARY
____
INDEX

LEGENDBUILDING CODE DATA

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FLOOR PLAN

MARIMAR
1539 E 8TH STNATIONAL CITY, CA. 91950
PLAN FILE NUMBER_A________DATE_JOB NUMBER_DRAWN BY_
SHEET NAME + No._
REVISIONS_

PROJECT NUMBERTBD

03.19.2025

PROPOSED LIVE

ENTERTAINMENT AREA

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WINDOW ANDDOORSCHEDULE

MARIMAR
1023-1027 UNIVERSITY AVENUESAN DIEGO, CA. 92103
PLAN FILE NUMBER_A________DATE_JOB NUMBER_DRAWN BY_
SHEET NAME + No._
REVISIONS_
PROJECT NUMBERPRJ-1131226

03.19.2025
LEGEND

GENERAL NOTES

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CITY OF NATIONAL CITY

NOTICE OF PUBLIC HEARING

DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS 1 OF THE CEQA GUIDELINES SECTION 15301 (EXISTING FACILITIES) AND CONDITIONAL USE PERMIT FOR THE SALE OF BEER AND WINE FOR ON-SITE CONSUMPTION (ABC TYPE-41 LICENSE) AND LIVE ENTERTAINMENT AT AN EXISTING RESTAURANT (SUSHI N’ GONE) LOCATED AT 1539 EAST 8TH STREET.

CASE FILE NO.: 2025-11 CUP
APN: 557-102-19

The Planning Commission conducted a Public Hearing at their meeting of July 21, 2025 and voted to recommend approval to the City Council of the Con ditional Use Permit, by a vote of 5 to 0, with one member absent. The applicant is proposing to sell on-site beer and wine (ABC Type 41) in conjunction with food sales at the existing r estaurant. The restaurant is proposing alcohol sales from 8:00 a.m. to midnight daily. Additionally, the applicant is requesting live entertainment from 11:00 a.m. to 10:00 p.m. Sunday through Thursday and from 11:00 a.m. to 11:00 p .m. Friday through Satur day. A determination that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Class 1, Section 15301 (Existing Facilities) will also be considered.

Anyone interested in this matter may appear at the above time and place and be heard.

The City Council will also accept written public comments regarding this matter.

Written comments or testimony fr om the public must be submitted via e -mail to [email protected] by 2:00 P.M. on the day of the City Council Meeting. For information on registering to pr ovide public comment via Zoom pl ease visit the City Clerk’s webpage at https://www.nationalcityca.gov/government/city- clerk/public-comments

If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice via e-mail, or through written correspondence delivered to the undersigned prior to the Public Hearing.

Shelley Chapel, MMC, City Clerk
Published in the Star News: Friday, August 22, 2025

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City of National City
Beat 21
Source: Microsoft Mappoint
NCPD CAU, 4/18/07

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Notes:

NATIONAL CITY POLICE DEPARTMENT

ALCOHOL BEVERAGE CONTROL

RISK ASSESSMENT

DATE:

BUSINESS NAME:

ADDRESS:

OWNER NAME: DOB:

OWNER ADDRESS:
(add additional owners on page 2)

I. Type of Business
 Restaurant (1 pt)
 Market (2 pts)
 Bar/Night Club (3 pts)
Tasting Room (1pt)

II. Hours of Operation
 Daytime hours (1 pt)
 Close by 11pm (2 pts)
 Close after 11pm (3 pts)

III. Entertainment
 Music (1 pt)
 Live Music (2 pts)
 Dancing/Live Music (3 pts)
No Entertainment (0 pts)

IV. Crime Rate
 Low (1 pt)
 Medium (2 pts)
 High (3 pts)

V. Alcohol Businesses per Census Tract
 Below (1 pt)
 Average (2 pts)
 Above (3 pts)

Revised: 8/16 1 of 2
04/17/25
Sushi N Gone Inc
1539 E. 8th Street, National City, CA 91950
Paolo Didier Maroales Lopez
08/24/84
418 Oaklawn Avenue #B, Chula Vista, CA 91910
There is (2) active on sale licenses in tract 118.02
Census Tract 118.02
There are (9) on sale licenses authorized in tract 118.02 There are (5) active off sale licenses in tract 118.02
There are (4) off sale licenses authorized in tract 118.02 ✔
✔
✔
✔
✔Page 524 of 737
National City Police Department ABC Risk Assessment

VI. Calls for Service at Location (for previous 6 months)  Below (1 pt)
 Average (2 pts)
 Above (3 pts)

VII. Proximity Assessment (1/4 mile radius of location)  Mostly commercial businesses (1 pt)
 Some businesses, some residential (2 pts)
 Mostly residential (3 pts)

VIII. Owner(s) records check
 No criminal incidents (0 pts)
 Minor criminal incidents (2 pts)
 Multiple/Major criminal incidents (3 pts)

OWNER NAME: DOB:

OWNER ADDRESS:

OWNER NAME: DOB:

OWNER ADDRESS:

Recommendation:

Completed by: Badge ID:

Revised: 8/16
2 of 2
Low Risk ( 12pts or less)
Medium Risk (13 – 18pts)
High Risk (19 – 24pts)

Total Points
12 This business assesses at a low risk and is deserving of such a rating.

A cause for concern would be the nightly live entertainment while located within a mixed residential and commercial area.

Camacho
449
✔
✔
✔

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Funded by the San Diego County Health and Human Services Agency 8885 Rio San Diego Drive #117  San Diego, California, 92108 Phone: 619.476-9100  Fax: 619.476-9104

www.publicstrategies.org

Environmental Scan
Conditional Use Permit (CUP) for alcohol sales (Beer & Wine) and live entertainment at an existing restaurant
1539 E 8th Street, National City, CA 91950
Conducted: April 22, 2025

Photo of the proposed location
An environmental scan was conducted at 1:30 p.m. on Tuesday, April 22, 2025, for alcohol sales (Beer & Wine) and live entertainment at an existing restaurant. The location is on the corner of East 8th Street and Palm Avenue, with a Shell gas station to the east, a vacant lot to the south, a residential area to the north, a strip mall to the west and another strip mall to the northeast. The business was closed at the time the environmental scan was conducted.

Proposed hours
Live Entertainment: 11 a.m. to 10 p.m. Sunday through Thursday, and 11 a.m. to 11 p.m. Friday and Saturday
Alcohol Sales: 8 a.m. to 12 a.m. daily

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Funded by the San Diego County Health and Human Services Agency 8885 Rio San Diego Drive #117  San Diego, California, 92108 Phone: 619.476-9100  Fax: 619.476-9104

www.publicstrategies.org

During a scan of the business and premises, the following was noted:
• Apartments immediately to the south of the vacant lot nearest the restaurant. • The restaurant is located at the bottom of a small hill with an immigration and tax service business at the top of the hill.
• Small parking lot to the front of the restaurant.

Youth Sensitive Areas/Other Vulnerable Locations
Rancho de la Nacion School and El Toyon School, each approximately 2,600 feet away, are the closest ones to this location.

Churches
International Church of Praise (approximately 528 feet away) is the closest one to this location.

Online Reviews
• Limited parking, small lot.
• From the outside is sketchy, but walking in the place looks clean. (5 months ago) • Family friendly though they do serve beer (1 year ago) • Customers commented on live music (7 months ago)
• Video of a band playing at the location was found on restaurant’s Facebook page • Concerned for my safety and security (1 year ago)

IPS has begun utilizing the following scale to more clearly define outlet density.

Least Dense (lightest color)
Somewhat Dense
Dense
Very Dense
Extremely Dense (darkest color)

The proposed location is defined as “Extremely Dense.” Within the census tract that where 1539 E 8th Ave is located, the density is 0.27 miles, which is more dense than the average for National City.

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Funded by the San Diego County Health and Human Services Agency 8885 Rio San Diego Drive #117  San Diego, California, 92108 Phone: 619.476-9100  Fax: 619.476-9104

www.publicstrategies.org

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Funded by the San Diego County Health and Human Services Agency 8885 Rio San Diego Drive #117  San Diego, California, 92108 Phone: 619.476-9100  Fax: 619.476-9104

www.publicstrategies.org

Considerations
The following are considerations:

2. To prevent the establishment from transforming into a night club, which could increase crime and nuisance problems, require that the restaurant always provide lunch and dinner through 12:00 am.

3. Require that the establishment must submit receipts as evidence of food sales offered along with alcohol before annual renewal of license.

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April 30, 2025
Dear Resident / Business Owner:

You are cordially invited to a?end a community meeAng regarding a CondiAonal Use Permit (CUP) with the city of NaAonal City by Sushi N Gone Inc. (Doing Business As – Sushi N Gone) for a California Department of Alcoholic Beverage Control (ABC) Type-41 license (beer and wine) to compliment their exisAng restaurant.

WEDNESDAY , MAY 7, 2025
6:00pm to 7:00pm

SUSHI N GONE
1539 East 8th Street
NaAonal City, CA 91950

The applicant will provide an overview of their request and have a quesAon and answer session shortly therea^er.

If you have any quesAons please feel free to contact Marco Cortes at (619) 852-4690 (or at [email protected]).

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640 WEST BEECH STREET, STE. 3-B
SAN DIEGO, CA 92101
619-852-4690
May 12, 2025
Sophia Depew
Planning Technician
Community Development Department
City of Na@onal City
1243 Na@onal City Boulevard
Na@onal City, CA 91950
RE: SUSHI N’ GONE INC. (DBA – SUSHI N’ GONE) REPORT FOR COMMUNITY MEETING; Ms. Depew:

On behalf of Sushi N’ Gone Inc. (DBA – SUSHI N’ GONE), I am submi Ung a summary of the Community Mee@ng that was held on Wednesday, May 7, 2025 from 6:00pm to 7:00pm at Sushi N’ Gone located at 1539 East 8th Street, Na@onal City, CA 91950.

The applicant and I were present and began the mee@ng at 6:00pm. Unfortunately, nobody aZended the mee@ng and the mee@ng was adjourned at 7:00pm.

Thank you for your considera@on, if I can be of further assistance please feel free to contact me directly at (619) 852-4690.

Kind regards,
Marco Polo Cortes Marco Polo Cortés
President

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RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CI TY OF NATIONAL CITY, CALIFORNIA,

DETERMINING THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS 1 OF THE CEQA GUIDELINES SECTION 15301 (E XISTING FACILITIES) AND APPROVING A CONDITIONAL USE PERMIT FOR BEER AND WINE SALES (ABC TYPE -41) AND LIVE ENTERTAINMENT AT AN EXISTING RESTAURANT (SUSHI N’ GONE) LOCATED AT 1539 EAST 8TH STREET.

CASE FILE NO. 2025-11 CUP
APN: 557-102-19

WHEREAS, the City Council of the City of National City considered a Conditional Use Permit on-site beer and wine sales and live entertainment at an existing restaurant (Sushi N’ Gone) located at 1539 E 8th Street . At a duly advertised public hearing held on September 2, 2025, at which time oral and documentary evidence was presented; and,

WHEREAS, at said public hearing the City Council considered the staff report contained in Case File No. 2025-11 CUP maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and,

WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and,

WHEREAS, the action hereby taken is found to be essential for the preservation of the public health, safety and general welfare.

NOW, THEREFORE, THE CITY COUNCIL OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the evidence presented to the City Council at the public hearing held on September 2, 2025, support the following findings:

1. The proposed use is allowable within the applicable zoning district pursuant to a Conditional Use Permit and complies with all other applicable provisions of the Land Use Code because alcohol sales and live enter tainment are allowable within the Major Mixed-Use Corridor zone, pursuant to a CUP, and the proposed use meets the required guidelines in the Land Use Code for alcohol sales and live entertainment, as discussed in the staff report. It is incidental to the existing restaurant use in a mixed-use area.

2. The proposed use is consistent with the General Plan and any applicable specific plan, because the Land Use Code permits alcohol sales and live entertainment, subject to a CUP, which is consistent with the Gene ral Plan. In addition, a restaurant wit h alcohol sales and live entertainment is consistent with the Major Mixed -Use Corridor zone land use designation contained in the Land Use Code and General Plan.

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3. The design, location, size, and operating characterist ics of the proposed activity would be c ompatible with the existing and future land uses in the vicinity, because n o expansion of the building is proposed. The proposal involves an existing commercial space, which was previously analyzed for traffic impacts when it was constructed.

4. The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints, because no expansion of the building is proposed. The proposed use s would be incidental to the primary use of food service.

5. Granting the permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located, because the proposed use will be subject to conditions that limit the sale of beer and wine as well as the hours that it will be available. Beer and wine will only be available with t he sale of food. In addition, all staff members serving alcohol are required to receive RBSS training. Live entertainment will be limited to acceptable hours and to levels of noise that will not disturb surrounding residential uses.

6. The proposed project h as been reviewed in compliance with the California Environmental Quality Act (CEQA) and has been determined to be categorically exempt from environmental review pursuant to Class 1, Section 15301 (Existing Facilities) for which a Notice of Exemption will b e filed subsequent to approval of this Conditional Use Permit. The reason for the exemption is that the use is proposed within an existing commercial building and the use is similar to other commercial uses in the area, which are permitted in the Major Mixed-Use Corridor zone.

7. The proposed use is deemed essential and desirable to the public convenience or necessity, because the restaurant, a permitted use in the Major Mixed-Use Corridor zone, will benefit from the sale of alcohol and live entertainment by providing for a wider diversity of businesses that add charm to the area.

8. Based on findings 1 through 7 above, public convenience and necessity will be served by a proposed use of the property for live entertainment and the on-site sales of alcoholic beverages in accordance with applicable law and the recommended conditions. The use, as proposed and conditioned, will operate in harmony with surrounding uses, will not cause a nuisance, and will benefit the community looking for a quality restaurant experience.

Section 2: That the application for Conditional Use Permit is approved subject to the following conditions:

General

1. This Conditional Use Permit authorizes the sale of beer and wine for on -site consumption and live entertainment at an existing rest aurant ( Sushi N’ Gone ) loca ted at 1539 E 8 th Street. Plans submitted for permits associated with this project shall conform to Exhibit A, Case File No. 2025-11 CUP, dated 05/06/2025.

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permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant or owner shall also submit evidence to the satisfaction of the Planning Division that a Notice of Restriction on Real Property is recorded with the Count y Recorder. The a pplicant o r owner shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or estate holders of the p roperty. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Director of Community Development prior to recordation.

3. This permit shall become null and void at such time as there is no longer a Type 41 California Department of Alcoholic Beverage Control license associated with the property.

4. This permit shall become null and void if not exercised within one year after adoption of the resolution of approval unless extended according to proce dures specified in the Muni cipal Code.

6. This Conditional Use Permit may be revoked if the operator is found to be in violation of any Conditions of Approval or applicable law.

Planning

8. No alcohol sales and consumption practices shall be permitted until the applicant has been issued a Type 41 license from the California Department of Alcoholic Beverage Control.

9. All sellers and servers of alcohol shall receive Responsible Beverage Service and Sales (RBSS) training, including all owners, and managers. The RBSS training must be certified by the Department of Alcoholic Beverage Control (ABC). Proof of completion of an approved RBSS program must be provided prior to issuance of a city business license. As part of the RB SS training, the Permittee shall make available a domestic violence training session as provided by the Institute of Public Strategies.

10. The sale of alcoholic beverages shall only be permitted between the hours of 10:00 a.m. to 10:00 p.m. Monday through Friday and 8:00 a.m. to 11:00 p.m. Saturday through Sunday.

11. Live entertainment shall only be permitted between the hours of 11:00 a.m. to 10:00 p.m.

Sunday through Thursday and from 11:00 a.m. to 11:00 p.m. Friday through Saturday.

12. The sale of al cohol shall not exceed the sale of food. With the annual renewal of the City business license, the business proprietor shall submit a statement clearly indicating total alcoholic beverage sales and total food sales. Said statement shall be subject to audit and verification by the Planning Manager or designee or other employees of the City, who are authorized to examine, audit and inspect such books and records of the license, as may be necessary in their judgment to verify that the sale of alcohol does not exceed the sale of food. All information obtained by an investigation of records shall remain confidential.

13. Alcohol shall be available only in conjunction with the purchase of food.

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14. The sale of alcoholic beverages for off-site consumption is not permitted at this location.

15. Live entertainment shall be conducted as an accessory use to the restaurant for the enjoyment of its customers. No advertisement promoting a particular performer or event shall be distributed outside the restaurant.

16. All entry and exit do ors, inclu ding windows, shall remain closed during inside live entertainment activities.

17. All activities shall comply with the noise limits contained in Table III of Title 12 of the National City Municipal Code.

18. The occupancy of the building, inclusive of patrons, staff, and entertainers, shall not exceed the occupancy load determined by the Building Division.

19. The operator of the business shall maintain an active business license and ensure that the business license is renewed annually.

Police

20. The permittee shall comply with all applicable law, including, but not limited to the regulatory provisions of the Business and Professions Code that pertain to the sale, advertising, or display of alcoholic beverages.

Indemnification Agreement
The Applicant shall defend, indemnify, and hold harmless the City, its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney's fees, against the City or its agents, officers, or employees, relating to the issuance of this permit including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision. The City will promptly notify the Applicant of any claim, action, or proceeding. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, the Applicant shall pay all of the costs related thereto, including without limitation reasonable attorney's fees and costs. In the event of a disagreement between the City and Applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter. However, the Applicant shall not be required to pay or perform any settlement unless such settlement is approved by the Applicant.

Section 3: That the City Council herby approves the Conditional Use Permit for beer and wine sales (ABC Type-41) and live entertainment at an existing restaurant (Sushi N’ Gone) located at 1539 E 8th Street.

Section 4: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of orginal Resolutions.

PASSED and ADOPTED this 2nd day of September, 2025.
__________________________
Ron Morrison, Mayor

ATTEST:

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_____________________________
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
_____________________________
Barry J. Schultz.

City Attorney

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AGENDA REPORT

Department: Human Resources
Prepared by: Alicia Hicks, Human Resources Director
Meeting Date: Tuesday, September 2, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Memorandum of Understanding (MOU) Between the City of National City and the National City Municipal Employees’ Association (NCMEA)

RECOMMENDATION:

Adopt the Resolution Entitled: Resolution of the City Council of the City of National City, California, Approving the Memorandum of Understanding Between the City of National City and the National City Municipal Employees’ Association and Authorizing the Establishment of a Fiscal Year 2 025-2026 Budget Appropriation in the Amount of $848,151.00 Spread Across Multiple Departments and Funds to Fund Salary and Benefit Increases.

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

The labor agreement between the City of National City and the NCMEA expired on June 30, 2025.

The City and NCMEA entered into negotiations in the Spring of 2025 to establish a successor MOU. Both parties engaged in good faith bargaining over wages, benefits and working conditions for represented classifications. On August 13, 2025, the NCMEA membership voted to ratify the terms of a three -year agreement, from July 1, 2025 through June 30, 2028, as set forth by the negotiating teams. Attached is a complete summary of the terms of the agreement that have been modified from the previous Memorandum of Understanding.

FINANCIAL STATEMENT:

The projected Citywide financial impact of the three-year contract with NCMEA is approximately $3.08 million of additional labor costs of which, $848,151, will impact the City’s current Fiscal Year 2025-2026, operating and capital budget. Staff requests a Citywide increase in appropriations of $848,151 for the Fiscal Year 2025-2026, operating and capital budget as show in Exhibit E.

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 at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

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ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A - Resolution
Exhibit B - Summary of Key NCMEA MOU Changes
Exhibit C - NCMEA Memorandum of Understanding
Exhibit D - NCMEA Salary Schedule Effective July 8, 2025 Exhibit E - FY 2025-2026 Increase in Budget Appropriations

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RESOLUTION NO. 2025 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,

APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NATIONAL CITY AND THE NATIONAL CITY MUNICIPAL EMPLOYEES’ ASSOCIATION AND AUTHORIZING THE ESTABLISHMENT OF A FISCAL YEAR 2025 -2026 BUDGET APPROPRIATION IN THE AMOUNT OF $ 848,151.00 SPREAD ACROSS MULTIPLE DEPARTMENTS AND FUNDS TO FUND SALARY AND BENEFIT INCREASES.

WHEREAS, on February 1, 2022, the City Council of the City of National City ( “City”) approved a Memorandum of Understanding (“MOU”) with the National City Municipal Employees’ Association (“MEA”) for the period of July 1, 2022 to December 31, 2024; and

WHEREAS, subsequently, on December 3, 2024, the City Council approved a Side Letter Agreement with MEA extending the MOU six (6) months to June 30, 2025 to allow additional time to negotiate a successor agreement to the MOU; and
WHEREAS, City and MEA representatives met and conferred in good faith and have come to an agreement on a successor agreement to the MOU; and WHEREAS, on August 13, 2025, the MEA membership voted to ratify the terms of a three (3) year agreement, from July 1, 2025 to June 30, 2028.

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 approves the Memorandum of Understanding between the City of National City and the National City Municipal Employees’ Association for a term of three years, from J uly 1, 2025 to June 30, 2028 . The Memorandum of Understanding is attached to the Agenda Report as Exhibit C.

Section 2: That the City Council hereby authorizes the City Manager to execute said Memorandum of Understanding.

Section 3: That the City Council hereby authorizes the establishment of Fiscal Year 2025-2026 budget appropriation s in the amount of $848,151.00 spread across multiple departments and funds totaling to fund salary and benefit increases.

Section 4: That the City Cler k shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 2nd day of September, 2025.

Ron Morrison, Mayor
ATTEST:

Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:

Barry J. Schultz, City Attorney

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1 13029308.1 NA040-036

SUMMARY OF KEY NCMEA MOU CHANGES

Term: July 1, 2025-June 30, 2028 (Changes effective July 2025 unless otherwise indicated)

Wages

Increase base salary for all classifications below the market median to the market median effective in July 2025

5% in July 2026

5% in July 2027
Holidays Add 1 floating holiday per year for FT and Career PT employees

Add single 5 hour floating holiday per year for PT Temporary employees (Prorated based on hire date)

Set holiday furlough dates for the term of the MOU

Expand OT pay for working during furlough to all employees that have to work during furlough
Court Leave Expand Court pay to all FT and Career PT employees required to appear in court as part of their job responsibilities
Overtime Increase Compensatory Time Off cap to 200 hours Education
Expenses
Increase annual cap for entire bargaining unit from $16,000 to $30,000 per year

Expand educational reimbursement benefit to PT Temporary employees, limited to employees who have worked 300 or more hours for the City and limited to $1,500 per fiscal year

Allow student loan reimbursements out of overall $30,000 annual cap for FT and PT career employees after their 4 year anniversary with the City, capped at $2,000 per fiscal year per employee
Employee and
Union Rights
Expand which employees can serve as a Steward

Increase allowed annual meetings from 4 per year to 5
Uniforms City to replace Fire Inspector uniforms damaged at work

City to provide a uniform to new Fire Inspectors

City to pay for work boots required by Cal-OSHA

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2 13029308.1 NA040-036
Equipment
Allowance
City to pay for prescription glasses for employees required to wear eye protection at work

Beginning July 2027, tool replacement allowance for Equipment mechanics to increase from $30 per pay period to $75 per pay period Work Day, Work
Week, Pay Period
and Pay Day
Allow employees that are required to change into protective gear, clothing or equipment at work to use the first 15 minutes of each shift and last 15 minutes of each shift for putting on and taking off of protective gear, clothing or equipment

Increase notice to employees from 10 working days to 15 working days if working hours change by 1 hour or more for 5 or more days Pay Differentials Bilingual Pay: Increase from $50 per pay period to $150 per pay period for FT and Career PT employees; $1.88 per hour for PT Temporary employees

Acting Assignment Pay: Increase from 5% of employee base pay to the higher of 1) 5% of the employee’s base pay; or 2) first step in salary range of higher position. Limit acting assignments to 960 hours per fiscal year

Shift Differential: Increase differential for overnight shifts from 2% of base pay to 6% of base pay

Trainer Assignment for Dispatchers: Increase from 3% of base pay to 6% of base pay
Duration of MOU July 1, 2025-June 30, 2028

City to complete salary survey by March 1 each year
Incentive Pay Notary Incentive Pay: Police Chief shall designate one employee in Police Department who is a Notary Public In California to perform notary services for the Police Department. Designated employee shall receive $200 per month if the employee maintains a sa tisfactory annual performance evaluation

Residential Incentive Pay: Effective July 2026 , $100 per pay period for FT and PT Career employees and $1.15 per hour for PT Temporary Employees if primary residence in National City.

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13003089.5 NA040-036

CITY OF NATIONAL CITY

MEMORANDUM
OF

UNDERSTANDING

BETWEEN

CITY OF NATIONAL CITY

CALIFORNIA

and

NATIONAL CITY
MUNICIPAL EMPLOYEES’ ASSOCIATION

AGREEMENT PERIOD

JULY 1, 2025 – JUNE 30, 2028

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2 NCMEA Agreement July 1, 2025 – June 30, 2028
13003089.5 NA040-036

MEMORANDUM OF UNDERSTANDING CONCERNING WAGES AND OTHER TERMS AND

CONDITIONS OF EMPLOYMENT BETWEEN THE CITY OF NATIONAL CITY AND THE NATIONAL CITY MUNICIPAL EMPLOYEES’ ASSOCIATION
FOR THE FOLLOWING PERIOD OF TIME:

JULY 1, 2025 – JUNE 30, 2028

The representatives of the City Manager of the City of National City, for and on behalf of the City Council of the City of National City, have met and conferred with the representatives of the National City Municipal Employees’ Association, an organization repres enting employees of the City of National City, in accordance with the provisions of Section 3500 et. Seq., of the Government Code of the State of California, and;

As a result of meeting and conferring in good faith with said Group, agreement has been reached on the following terms and co nditions of employment a s applied to those employees who are members of and represented by the Association; and the Memorandum of Understanding concerning said agreed terms and conditions of employment has been approved by the City Council of the City of National City on, September 2, 2025, by Resolution No. 2025-______.

For the CITY: For the NCMEA/SEIU:

_____________________________________________

SCOTT HUTH
Interim City Manager

_____________________________________________
STEVEN M. BERLINER
Chief Negotiator, Liebert Cassidy Whitmore

____________________________________________

CONCHITA WAITE
Supervising Human Resources Analyst

_____________________________________________

BRUCE FOLTZ
Finance Director

___________________________________________

ROSLYN CASSIDY
Chief Negotiator, Worksite Organizer SEIU Local 221

___________________________________________

KARLA APALATEGUI
President NCMEA/SEIU

____________________________________________

EDDIE SANCHEZ
Vice President NCMEA/SEIU

____________________________________________

JAMES KIM
NCMEA/SEIU Bargaining Team Member
____________________________________________

ALEX NEU
NCMEA/SEIU Bargaining Team Member

_____________________________________________

JUANITA CASTANEDA
NCMEA/SEIU Bargaining Team Member

______________________________________________

HILDA PEREZ-LAGUNA
NCMEA/SEIU Bargaining Team Member

______________________________________________

STEPHANIE MENDIOLA
NCMEA/SEIU Bargaining Team Member
_______________________________________________

STEPHEN KARCHER
NCMEA/SEIU Bargaining Team Member

________________________________________________

ROGELIO VELARDE SALES
NCMEA/SEIU Bargaining Team Member

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3 NCMEA Agreement July 1, 2025 – June 30, 2028
13003089.5 NA040-036

________________________________________________

DAVID GALLEGOS
NCMEA/SEIU Bargaining Team Member

________________________________________________

ANDREW DEL SOL WILLIAMSON
NCMEA/SEIU Bargaining Team Member

________________________________________________

RUTH CUEVAS
NCMEA/SEIU Bargaining Team Member
_______________________________________________

MARICAR CAMAYA
NCMEA/SEIU Bargaining Team Member

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4 NCMEA Agreement July 1, 2025 – June 30, 2028
13003089.5 NA040-036

TABLE OF CONTENTS

ARTICLE 1 – IMPLEMENTATION........................................................................................................... 5 ARTICLE 2 – HOLIDAYS .......................................................................................................................... 6 ARTICLE 3 – LEAVE ELIGIBILITY AND PROCEDURE .................................................................... 10 ARTICLE 4 – ANNUAL VACATION LEAVE ....................................................................................... 11 ARTICLE 5 – MILITARY LEAVE ........................................................................................................... 14 ARTICLE 6 – FAMILY CARE AND MEDICAL LEAVE ...................................................................... 15 ARTICLE 7 – COURT LEAVE ................................................................................................................. 16 ARTICLE 8 – SICK LEAVE WITH PAY ................................................................................................. 17 ARTICLE 9 – TRANSFER OF LEAVE CREDITS .................................................................................. 22 ARTICLE 10 – THE COMPENSATION PLAN ....................................................................................... 23 ARTICLE 11 – OVERTIME ...................................................................................................................... 25 ARTICLE 12 – EDUCATION EXPENSES REIMBURSEMENT .................................................................. 28 ARTICLE 13 – SERVICE RECOGNITION PAY .................................................................................... 29 ARTICLE 14 – HEALTH AND DENTAL INSURANCE ........................................................................ 30 ARTICLE 15 – HEALTH & SAFETY RELATED PROGRAMS ............................................................ 32 ARTICLE 16 – EMPLOYEE LIFE INSURANCE .................................................................................... 33 ARTICLE 17 – SHORT TERM/LONG TERM DISABILITY INSURANCE .......................................... 34 ARTICLE 18 – PUBLIC EMPLOYEES' RETIREMENT SYSTEM ........................................................ 35 ARTICLE 19 – PROVISIONS OF LAW................................................................................................... 36 ARTICLE 20 – EMPLOYEE AND ASSOCIATION RIGHTS ................................................................ 37 ARTICLE 21 – WAGE AND SALARY SCHEDULE .............................................................................. 40 ARTICLE 22 – UNIFORMS ...................................................................................................................... 42 ARTICLE 23 – EQUIPMENT ALLOWANCE ......................................................................................... 43 ARTICLE 24 - WORK DAY, WORK WEEK, PAY PERIOD AND PAY DAY ..................................... 44 ARTICLE 25 – PAY DIFFERENTIALS ................................................................................................... 46 ARTICLE 26 – GRIEVANCE PROCEDURE .......................................................................................... 47 ARTICLE 27 – MANAGEMENT RIGHTS .............................................................................................. 50 ARTICLE 28 – OBLIGATION TO SUPPORT ......................................................................................... 51 ARTICLE 29 – AGREEMENT, MODIFICATION, WAIVER ................................................................ 52 ARTICLE 30 – DURATION OF MEMORANDUM OF UNDERSTANDING ....................................... 53 ARTICLE 31 – DEFINITIONS ................................................................................................................. 54 ARTICLE 32 – INCENTIVE PAY ............................................................................................................. 55

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5 NCMEA Agreement July 1, 2025 – June 30, 2028
13003089.5 NA040-036
ARTICLE 1 – IMPLEMENTATION

Section 1

It is agreed that this Memorandum shall not be binding upon the parties either in whole or in part unless and until:

A. The NCMEA/SEIU 221 has approved and adopted this MOU.

B. The City Council acts, by majority vote, formally to approve and adopt this MOU.

1. The City Council shall upon approval and adoption of said MOU act to appropriate the necessary funds required to implement the provisions of this MOU that require funding.

2. The City Council shall act in a timely manner to make the necessary changes in ordinances, resolutions, rules, policies and procedures to implement and conform to this agreement.

Section 2 Representation

The City of National City formally recognizes the National City Municipal Employees' Association (NCMEA) as the exclusive representative of all employees in affiliation with SEIU, Local 221 in the classifications listed in Appendix “A”.

Section 3 Eligibility

The wages, benefits and conditions of employment provided in this MOU are applicable to all regular and part - time career employees and part-time temporary employees as defined by Civil Service Rule IV, Section 407.1 A.(1) and (2) and assigned by the City to the MEA unit. Benefits for Part -Time Career employees will be prorated. The classifications in this bargaining unit are set forth in Attachment “A”. Career/Limited Term employees in classifications assigned to the NCMEA Bargaining Unit may be eligible for the benefits provided herein only when the grant or program provides adequate funding for same. However, the City agrees to request that adequate funding for benefits be provided. Benefits and compensation for Part-Time Temporary employees in addition to their hourly wage will be limited to those specifically enumerated in the and/or as required by law.

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6 NCMEA Agreement July 1, 2025 – June 30, 2028
13003089.5 NA040-036
ARTICLE 2 – HOLIDAYS

Section 1

Eligible employees in this bargaining unit are entitled, without loss of pay, to the holidays listed below:

A. The following days shall be fixed holidays with pay:

1. New Year's Day – January 1st

2. Martin Luther King – 3rd Monday in January

3. Cesar Chavez Birthday – March 31st

4. Memorial Day – Last Monday in May

5. Independence Day – July 4th

6. Labor Day – 1st Monday in September

7. Thanksgiving Day – 4th Thursday in November

8. Day after Thanksgiving

9. Christmas Eve – December 24th

10. Christmas Day – December 25th

B. In addition to the fixed holidays above, the following five (5) days will be credited as "Floating Holidays":

1. Presidents’ Day – 3rd Monday in February

2. Juneteenth – June 19th

3. Indigenous People’s Day– 2nd Monday in October

4. Veterans' Day – November 11th

5. One (1) floating holiday not tied to any specific date provided at beginning of fiscal year

C. Fixed holidays falling on a regularly scheduled workday will be paid based on the employee’s assigned daily work schedule. For example, employees assigned to a 4/10 schedule will have holidays paid in ten (10) hour increments when the holiday falls on a regularly scheduled workday. Floating holidays will be paid based on an employee’s assigned daily work schedule.

D. Part-Time Temporary employees shall receive paid ho lidays only as follows : one (1) floating paid holiday per fiscal year equal to five (5) hours, regardless of work schedule and not tied to any specific date. Part-Time Temporary employees hired after July 1 of any year shall receive a prorated amount of holiday leave (e.g., 3.75 hours if start date is October 1).

Section 2

The floating holidays shall be used by the employee in minimum increments of fifteen (15) minutes at the employee's discretion subject to the approval of the department head or his/her designee as a holiday and shall be used within the fiscal year earned. Reasons for denial to observe a holiday on the date requested by the employee shall be in writing and can only be related in the judgment of the department head to the efficient functioning of the department. If the department head certifies in writing to the Finance Director that it was not possible to grant the time off during the fiscal year due to unforeseen or extreme workload problems, then unused holiday credits will be added to the employee's vacation accumulation.

Floating holidays may be used earlier in the fiscal year than their occurrence. New employees shall not receive credit for holidays which occurred prior to their starting date. Separating employees who have receiv ed paid time off for holidays which have not occurred as of the date of their separation are required to repay the City for

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7 NCMEA Agreement July 1, 2025 – June 30, 2028
13003089.5 NA040-036
such floating holidays for which they have been paid. Only non -probationary employees and employees separating in good standing shall be paid for accrued and not taken holiday time.

Section 3 Appointed and Religious Holidays
With City Council approval, every day appointed by the President of the United States or by the Governor of California for a public fast, thanksgiving or holiday , with the exception of Good Friday, shall be honored as an additional holiday. Employees may request time off to attend religious services or other religious activities on Good Friday or on the recognized religious holidays during the year; such time off shall be charged to the employees annually accumulated leave or compensating time off. If the employee has no accumulated annual leave or compensating time off, such time off shall be without pay.

Section 4 Holidays Occurring on Normal Work Day, during Sick Leave or Annual Leave or on a Weekend

A. In the event a fixed holiday (as defined in Section 1) falls on and is observed on an employee’s regular day off:

1. If the employee is not required to work, such employee shall be granted a floating holiday.

2. If the employee is required to work the employee shall receive:

a) pay at the time and a half rate for hours worked on the holiday; and

b) floating holiday hours equal to the number of hours actually worked.

B. In the event a fixed holiday (as defined in Section 1) falls on an employee’s regular work day:

1. If the employee is not required to work, such employee shall be compensated at straight time equal to the number of hours the employee would have been assigned to work.

2. If the employee is required to work the majority (over half) of his/her shift between 12:00 a.m. and 11:59 p.m. on the observed fixed holiday, the employee shall receive one of the following at the option of the employee:

a) pay at the time and a half rate for hours worked; or

b) straight time and floating holiday hours equal to the number of hours actually worked.

Exception: For the fixed holidays of Christmas Day, New Year’s Day, day of July 4th, and Thanksgiving Day, employees shall receive:

a) pay at the time and a half rate for hours worked on the holiday with a minimum of two (2) hours of pay; and

b) eight hours paid holiday time at straight time.

Date Shift Creditable Hours Rationale
November XX, 20XX
(Thanksgiving)
20000 – 0600 8 hours holiday pay
10 hours worked at 1.5 times
Thanksgiving is an
“Exception” holiday
November XX, 20XX
(Day after Thanksgiving)
20000 – 0600 10 hours straight time
10 floater hours
Fixed holiday
December 24, 20XX
(Christmas Eve)
20000 – 0600 10 hours straight time
10 floater hours
Fixed holiday
December 25, 20XX
(Christmas Day)
20000 – 0600 8 hours holiday pay
10 hours worked at 1.5 times
Christmas Day is an
“Exception” holiday

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January 1, 20XX (New
Years’ Day)
20000 – 0600 8 hours holiday pay
10 hours worked at 1.5 times
New Years’ Day is an
“Exception” holiday

C. When an employee is absent on annual leave, sick leave or compensating time off, a fixed holiday immediately preceding, immediately following or wholly within such leave period shall be recorded as a holiday and not as a day of leave.

D. If a fixed holiday occurs on a Saturday, the City will observe the holiday on the preceding working day.

If the fixed holiday falls on Sunday, the following work day will be observed as the holiday, except as noted in Article – (holiday closure article).

E. Should the City shift the observed holiday to a day other than the actual holiday, City employees working schedules outside of the standard Monday through Friday will continue to observe the actual holiday and be compensated according to time worked on the actual holida y as outlined above. Employees in this situation will be notified of the appropriate time card notations in advance of the holiday.

Section 5 Holiday Closures

City facilities will close for a period of approximately two weeks in the second half of December of each year with time off for non-essential personnel.

1. Each June, employees may elect to either (a) take unpaid furlough hours/days off during the holiday closure for that calendar year, (b) use accrued paid leave balances (vacation, comp time an d/or floating holidays) during the holiday closure for that calendar year, or (c) have equal pay deductions each pay period for the 26 pay periods of the fiscal year that includes the applicable holiday closure period to cover the two week holiday closure.

o To elect options (a) or (c), employees must notify Payroll no later than the end of the last business day of the first full week in June of the applicable year.

o If no election is made, option (b) (use of accrued paid leave balances during the holiday closure) shall apply. If the employee’s accrued leave balances are insufficient to cover the entire holiday closure, the remainder of the holiday closure hours will be deemed unpaid time off with a corresponding deduction in the employee’s pay check for the pay period.

2. Any employee subject to furlough required to work during furlough shall be compensated at time and one-half when working during furlough hours.

3. The following calendar is based on the City’s current 4/10 workweek for the 2025, 2026 and 2027 Holiday Closures. A change in the workweek schedule would result in a modification of the calendar.

2025 Holiday Closure – Monday, December 22 to Friday January 2, 2026

December 22 furlough leave or accrued leave
December 23 furlough leave or accrued leave
December 24 Holiday (Christmas Eve)
December 25 Holiday (Christmas Day)
December 29, 30 31 furlough leave or accrued leave
January 1 Holiday (New Year’s Day)

2025 Additional Holiday Closure – Library (Note: Library is always closed on Sunday) Weekend before furlough (including Friday) – December 19-20, 2025 Weekend after furlough (including Friday) – January 2-3, 2026

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2026 Holiday Closure – Monday, December 21 to Friday January 1, 2027

December 21 furlough leave or accrued leave
December 22 furlough leave or accrued leave
December 23 Holiday (Christmas Eve)
December 24 Holiday (Christmas Day)
December 28, 29, 30 furlough leave or accrued leave
December 31 Holiday (New Year’s Day)

2026 Additional Holiday Closure – Library (Note: Library is always closed on Sunday) Weekend before furlough (including Friday) – December 18-19, 2026 Weekend after furlough (including Friday) – January 1-2, 2027

2027 Holiday Closure – Monday, December 20 to Friday December 31, 2027

December 20 furlough leave or accrued leave
December 21 furlough leave or accrued leave
December 22 Holiday (Christmas Eve)
December 23 Holiday (Christmas Day)
December 27, 28, 29 furlough leave or accrued leave
December 30 Holiday (New Year’s Day)

2027 Additional Holiday Closure – Library (Note: Library is always closed on Sunday) Weekend before furlough (including Friday) – December 17-18, 2027 Weekend after furlough (including Friday) – December 31- January 1, 2028

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ARTICLE 3 – LEAVE ELIGIBILITY AND PROCEDURE

Section 1 Leave Categories

Consistent with the provisions of these chapters, employees in the competitive service shall be entitled to holidays and annual vacation and shall be allowed sick, injury, emergency and special leaves of absence. Career part-time employees in competitive service working twenty (20) hours or more per week, shall be entitled to all holidays, annual vacation, sick or emergency leave and special leaves of absence as granted to full -time employees on a pro rata basis within the same number of pay periods.

Section 2 Requests for Leave

All requests for leaves of absence, whether with or without pay, shall be submitted in writing on prescribed forms, and except as provided in the case of compulsory leave, court leave and special meetings, must meet the approval of the department head.

Section 3 Leave Approval

Except in the case of sick or emergency leave, the scheduling of leaves is subject to the approval of the department head or his/her designee. It is the obligation of the employee to requ est in writing prior approval for all other leaves. Under unusual circumstances, the department head has the discretion to waive the requirement for prior approval. The department head shall respond to a request for leave within ten (10) days. Approvals may be rescinded by the department director in time of emergencies such as flood, earthquake, fire, civil disturbance, maintenance of skeleton staffing level, and other similar situations. Leave will not be denied unless the department demonstrates that it cannot function without the individual who is requesting a leave.

Section 4 Leave of Absence - Commencement and Termination

Each leave of absence shall be granted for a specific period of time and a specific cause, and if such cause shall cease to exist prior to the expiration of the period for which the leave is granted, such leave shall thereafter be invalid.

Section 5 Leave of Absence - Failure to Report

Leaves of absence shall be indicated on the payroll time sheets submitted to the Director of Finance for checking and certification. Failure of an employee to report at the expiration of leave shall separate the employee from City service and shall be considered, in effect, a resignation; provided, however, the City may cancel such separation if circumstances warrant such cancellation (as determined by the City Manager or his designee).

Section 6 Benefits during Leave without Regular Pay

All accrual of leaves, City contributions and benefits will be suspended at the end of 45 calendar days after the leave of absence begins, except as provided in this MOU and applicable law. This includes leaves without pay, suspensions, injury leave and military leave. All accounts, contributions and benefits will resume upon return from leave.

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ARTICLE 4 – ANNUAL VACATION LEAVE

Section 1

All eligible employees shall be entitled to annual vacation leave with pay.

Section 2 Accrual Rates

All accrual rates are calculated on the basis of biweekly pay periods. All forty (40) hour per week employees shall be governed by the following vacation accrual rates:

1 through 5 years’ service 3.08 hours per pay period
6 through 10 years’ service 4.62 hours per pay period
11 through 12 years’ service 4.94 hours per pay period
13 through 14 years’ service 5.23 hours per pay period
15+ years’ service 6.15 hours per pay period

New employees will receive, during their initial probationary period, five (5) days (totaling 40 hours) of accrued vacation at completion of nine (9) months of employment and five (5) days (40 totaling hours) of accrued vacation at completion of the probation period. Accrual will then continue at the rates above.

Section 3 Scheduling of Vacation

Vacation schedules shall be arranged by the department head with particular regard to the needs of the City and, as far as possible, with the wishes of the employee.

1. Eligibility for vacation pay shall be verified by the Finance Officer, who will pay only for that time which has accrued.

2. If the requirements of the employee's services are such that the employee cannot take part or all of his/her annual vacation in a particular calendar year, such vacation shall be taken during the following calendar year.

3. An eligible employee may take earned vacation in any increment of fifteen (15) minutes or more with the consent of the department head and the approval of the City Manager.

Section 4 Maximum Vacation Accumulation

An employee may accumulate vacation to a maximum of 2.5 times the yearly earned vacation time. Vacation leave is credited as ear ned and the amount of vacation leave accumulated shall not exceed the maximum and accrual shall stop whenever the employee is at the maximum.

Section 5 Holidays Falling Within Vacation Period

Except in the case of terminal vacation leave, paid holidays immediately preceding, immediately following or wholly within the vacation period shall not be regarded as part of the vacation.

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Section 6 Terminal Vacation Pay

Upon termination from City service, an employee shall be entitled to pay in lieu for the number of accumulated vacation hours credited to the employee's account to a maximum of 2.5 times their annual accrual under the provisions of this section. All vacation granted upon completion of an employee's last day of work shall be a lump sum payment termed "terminal vacation pay" at the employee's current rate of pay.

Section 7 Vacation Sell-Back

During the term of this agreement, all MEA members on a career basis meeting the eligibility criteria defined below may convert a minimum of twenty (20) hour s and a maximum of eighty (80) hours of their accumulated vacation time payable not later than December of each year. The City shall attempt to process these requests prior to the Thanksgiving holiday.

In order to convert accrued vacation hours:

a) Employees must use a minimum of 40 vacation hours during the eligibility period and have at least 50 hours “on the books” before and after the request.

b) Employees must submit a written request to Payroll to convert vacation hours to pay on or before November 1 of each year.

c) Effective in 2018, employees who reach the vacation cap may have a second opportunity to convert vacation hours up to a total maximum of eighty (80) total hours in the applicable eligibility period under paragraphs a) and this paragraph.

d) The eligibility period is defined as the first pay period in November to the last pay period in October.

Beginning in December 2025, and each December thereafter, employees who want to cash out or sell back vacation leave must irrevocably choose in writing, on a form available from the Human Resources Department, to cash a minimum of 20 hours and maximum of 80 hours of vacation time that are to be accrued and remaining unused in the following calendar year. Vacation time balances rolled over from prior calendar years are not eligible for cash out. Regardless of the number of hours irrevocably elected for cash out, the cash out will only be made from hours accrued during the calendar year and not otherwise used for time off or otherwise by the employee at the time of the cash out. Cash outs shall be paid with the last paycheck in the following December after receipt of the irrevocable election form for those employees. In order to receive the cash out in December, the employee must use 40 hours of vacation leave between January 1 through November 30 of the year the cash out is to be paid.

Employees who do not submit an irrevocable election form by December 15th will be deemed as foregoing participation in the optional annual leave cash-out program for that following calendar year.

In the event an employee has less hours in their leave bank at the time the cash -out is to be paid than they had previously elected to cash-out, the employee shall only be paid for up to the amount that was accrued that calendar year that is remaining in their designated leave bank at the time of the actual cash- out.

If an employee makes an irrevocable election to cash-out leave in the following calendar year and uses leave during that subsequent calendar year, the leave used may come from leave the employee had earned (if any) prior to January 1st of the calendar year the employee had elected to cash -out and/or in the same calendar year. The employee’s use of earned, but unused leave accumulated from previous

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13003089.5 NA040-036
calendar years shall not result in a reduction in the amount of leave hours the employee is eligible to cash-out.

An employee who experiences an unforeseeable emergency may be permitted to make a new irrevocable election and/or to increase the amount of a previous election, subject to the same value that was permitted at the time the annual irrevocable election forms were due.

For these purposes, an “unforeseeable emergency” means a financial hardship to the employee resulting from any of the following:

• Accident, illness, injury or death of the employee or an immediate family member. For this purpose, an “immediate family member” is restricted to a spouse, registered domestic partner, child/legal dependent, or parent; or

• Loss of extensive damage to the employee’s property due to casualty; or

• Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.

Whether an occurrence is an unforeseeable emergency shall be solely determined by the City Manager or designee.

The City shall make a form available for employees to make their irrevocable election.

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ARTICLE 5 – MILITARY LEAVE

In addition to the leaves of absence provided in this article, City officers or employees who are also members of the armed services or militia or organized reserves of this State or Nation, shall be entitled to the leaves of absence and the employment rights and privileges provided by the Military and Veterans' Code of the State of California.

1. The term "Military Service" as used herein shall signify service on active duty with any branch of service above mentioned as well as training or education under the supervision of the United States preliminary to induction into the military service.

2. The terms "active service" or "active duty" shall include the period during which such officer or employee while in military service is absent from duty on account of sickness, wounds, leave or other lawful cause.

3. No employee serving under a permanent appointment in the Classified Service shall be subjected by any person directly or indirectly by reason of his/her absence on military leave to any loss or diminution of vacation, holiday, insurance, pension, retirement or other privilege or benefit now offered or conferred by law, or be prejudiced by reason of such leave with reference to promotion, continuance in office or employment, re-appointment or re-employment.

4. When military leave is granted to an employee in the Classified Service pursuant to this section, the posi tion held by such employee shall be filled temporarily only during the employee's absence, except in the event of the employee's death while on leave, and said employee shall be entitled to be restored to such position, or to a position of like seniority, status and pay upon, return from such leave, provided employee is still mentally and physically qualified to perform the duties of such position and provided said employee makes application for re -employment within ninety (90) days after being relieved from such military service.

5. During absence on military leave any employee in the Classified Service who has been employed continuously by the City for a period of not less than one (1) year prior to the date upon which such absence begins, shall receive his/her regular salary for a period not to exceed thirty (30) calendar days in any one fiscal year. All services of said employee in the recognized military service shall be counted as employment with the City.

After 30 consecutive days of paid military leave, the City will supplement an employee’s military pay for a period of 6 months. This supplemental amount will be the difference between the employee’s normal pay and their military pay. In addition, the City will provide existing levels of health care benefits during the supplemental 6 -month period. At the discretion of the City Council, supplemental paid military leave may be extended beyond the 6-month period.

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ARTICLE 6 – FAMILY CARE AND MEDICAL LEAVE

REFER TO CITY POLICY ON FAMILY AND MEDI CAL LEAVE. SAID POLICY IS ON FILE IN THE

OFFICE OF THE HUMAN RESOURCES DIRECTOR, AND IS INCORPORATED IN THIS MOU BY REFERENCE.

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ARTICLE 7 – COURT LEAVE

An employee who is required by court order to serve as a juror or as a witness who is not a party to a court action, shall be granted leave for such purpose upon presentation of proof of the period of said employee's required attendance to the department head and the Finance Officer. The employee shall receive full pay for the time he/she serves on court duty. Request for such leave shall be made upon the request for leave of absence forms.

If juror or witness duty ends more than one hour prior to the conclusion of the work day, the employee shall report back to work or use leave time for the remainder of the work day unless other arrangements are agreed to by the supervisor.

All employees shall get a minimum of two (2) hours pay, at a rate of time and one half, for each court appearance required by their work responsibilities on regularly scheduled time off. If the employee travels directly between the court and his/her residence, then the employee shall be paid for 1/2 hour maximum. If the employee reports to the Police Station, he/she is not entitled to travel time between the station and home; he/she would be entitled, however, to compensation for parking fees and travel time between the station and the court. The City encourages the use of public transportation to avoid incurring parking fees.

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ARTICLE 8 – SICK LEAVE WITH PAY

The intent of this chapter is to provide a continuity of full salary to those eligible employees who are unable because of illness or injury to perform the duties of their positions who would expose fellow workers or the public to contagious disease and are thereby forced to be absent from employment, and to provide necessary time off from work for required medical and dental care, subject to administrative regulations designed to prevent malingering or abuse of these privileges.

Section 1 Sick Leave Definition

Sick leave is the necessary absence from duty of an employee for:

A. Diagnosis, care, or treatment of the employee’s existing health condition or preventive care for an employee; or

B. The serious disability of the employee while on a scheduled vacation.

C. The absence of an employee for authorized medical or dental care.

D. Diagnosis, care, or treatment of an existing health condition of, or preventive care for an employee’s family member. For the purposes of using sick leave under this policy only, “family member” shall mean an employee’s parent, child, spouse, registered domestic partner, parent-in- law, sibling, grandchild or grandparent.

E. The death of a family member.
“Family member” is defined for this purpose as a spouse or a child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law as defined in Government Code section 12945.2.

In addition, an employee who is a victim of domestic violence, sexual assault, or stalking may use accrued paid sick leave under this policy for the following reasons:

1. To obtain or attempt to obtain any relief, including, but not limited to, a temporary restraining order, restraining order, or other injunctive relief, to help ensure the health, safety, or welfare of the victim or the victim’s child;

2. To seek medical attention for injuries caused by domestic violence, sexual assault, or stalking;

3. To obtain services from a domestic violence shelter, program, or rape crisis center;

4. To obtain psychological counseling related to an experience of d omestic violence, sexual assault, or stalking;

5. To participate in safety planning and take other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent relocation.

Section 2 Sick Leave Accumulation

A. Each regular full -time career or probationary employee in this bargaining unit, shall be entitled to accumulate sick leave at a rate of 3.69 hours per biweekly pay period. Earnings for partial pay periods shall be granted on a pro rata basis. Permanent part-time employees in the competitive service are entitled to accumulate sick leave at a rate consistent with the provisions of Article 3, Section 1. Part-Time

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Temporary employees shall accrue sick leave in the amount required by California sta tute. Details regarding sick leave for these employees is described in the City Administrative Manual, Vol. 1, Instruction No.04.15.

B. Accumulated Sick Leave: Each career or probationary employee in this bargaining unit shall be eligible to accumulate sick leave up to a maximum of 400 hours, (herein called "accumulated sick leave"). Sick leave accrual will be credited on the last of each pay period up to the 400 hour maximum limitation.

Section 3 Sick Leave Usage

A. Employees shall first utilize accumula ted sick leave pursuant to Section 1 herein. Frozen sick leave balance will only be authorized for use after accumulative sick leave credits are exhausted for those employees who have a frozen sick leave balance pursuant to Section 2(C) herein.

B. Upon reaching the maximum accumulated sick leave (400 hours), accrual will stop; sick leave accrual will begin after the employee's balance falls below 400 hours. Accrual will occur on the last day of the pay period in which the employee’s balance falls below the 400 hour level. Said accrual will occur at the established rate as defined in Section 2(A).

Section 4 Limitation on Time Chargeable to Sick Leave

A. No person shall be entitled to sick leave with pay while absent from duty on account of any of the following causes:

1. Sickness sustained while on leave of absence other than his/her regular vacation.

2. No paid sick leave shall be granted in excess of the employee's sick leave credit.

B. Absence that is chargeable to sick leave in accordance with this Chapter, shall be charged in the amount not smaller than fifteen (15) minutes.

Section 5 Sick Leave Compensation

A. In order to receive compensation while on sick leave, the employee shall notify:

1. The immediate supervisors, or;

2. The department head, or;

3. In the event of the unavailability of either, the senior department representative available.

B. Notification shall be made prior to or not later than the beginning of the work day/shift in the employee's respective department. If the need for paid sick leave is unforeseeable, the employee shall provide notice of the need for the leave as soon as practicable. Compensation is contingent upon approval from the appropriate department director.

C. The department head may waive the above requirements, if i n his/her opinion, an emergency or other exceptional circumstance so warrants. Computation of sick leave shall not include regular days off or holidays, provided these are not in conflict with the established schedule within each department.

Section 6 Physician's Statement Required

A. Once the statutory sick leave requirement has been exhausted by the employee (40 hours or 5 days based on the employee’s schedule, whichever is greater) when subsequent absences are for more than three (3)

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consecutive working days or when abuse of the sick leave benefit is suspected, the department head may require the employee to furnish a certificate or statement from a regular licensed and practicing physician, at the employee's own expense, whose license will be honored by the County Health Officer, indicating the nature and duration of the employee's incapacity or other adequate evidence if the employee was not examined by a physician. The appointing authority may require evidence of incapacity in cases of short periods of absence and may require a medical examination when an employee returns to work with indications of continuing illness or disability.

B. The department head is responsible for sick leave verifications. This responsibility may be implemented by any reasonable method deemed necessary by the department head. Sick leave with pay is subject to verification of the employee's eligibility by the Finance Officer.

Section 7 Separation from City Service

All eligibility from sick leave with pay shall be canceled upon separation of the employee from the City service, provided that, if such separation is by lay-off, his/her accumulated eligibility shall be restored to him/her in whole if the employee is re-employed within 24 months.

Section 8 Illness during Vacation Leave

An employee who becomes incapacitated for work due to his/her illness or injury for more than three (3) consecutive calendar days while on paid vacation, may substitute sick leave credits for vacation, provided the employee's request for sick leave substitution is accompanied by a doctor's statement or other satisfactory evidence.

Section 9 Holidays during Sick Leave

Paid holidays immediately preceding, immediately following or wholly within the period for which sick leave is granted shall not be regarded as part of such period of sick leave.

Section 10 Sick Leave Payment upon Retirement

A. An employee hired on or before June 30, 1979, shall upon formal retirement from the City under the Public Employees' Retirement System, be paid for each day o f unused sick leave or fraction thereof which has accrued to his/her credit up to and including his/her last day of work, but not to exceed 45 days or 360 hours. An employee hired on or after July 1, 1979 shall not be eligible for sick leave payment upon retirement.

B. For employees hired on or before June 30, 1979 sick leave pay off upon retirement shall be the sum of:

a. Frozen sick leave balance upon date of retirement.

b. Accumulative sick leave balances upon retirement.

However, in no event shall the payoff exceed 360 hours.

The City’s contract with CalPERS contains an amendment that provides for conversion of unused sick leave (cashed out sick leave is considered used) at retirement to be converted to service credit.

Section 11 Evidence of Cause of Absence

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In all cases of absence because of illness or death in the employee's family, the employee may be required to furnish to the appointing authority satisfactory evidence substantiating the facts justifying such leave. Failure to furnish such evidence upon request shall be sufficient reason for denying the leave of absence with pay.

Section 12 Sick Leave Incentive Pay

A. Employees using 40 hours of sick leave or less during the 26 complete pay periods most closely coinciding with the beginning and end of the fiscal year and having a minimum total accumulation of 160 hours, may sell for cash the excess over 160 hours of unfrozen sick leave accumulation to a maximum established according to the following schedule:

Unused Sick Leave
From Current Year's Accrual
Annual Maximum
Sell Back
96 Hours 48 Hours
From 80-95 Hours 40 Hours
From 60-79 Hours 32 Hours

Only the hours sold back to the City shall be deducted from the employee's accrued balance of sick leave.

B. Payment will be made during the month of August each year. Pay will be computed based on the employee's salary step on June 30 of the preceding fiscal year. (The Finance Department shall issue eligibility notices to qualified employees at the end of each fiscal year.) Written request must be submitted to the Finance Office within ten (10) working days of issuance of the notice. Sick leave incentive payments will be incorporated into the normal payroll.

C. In lieu of sick leave incentive pay, the employee may elect to retain sick leave credits to th e 400-hour maximum to supplement pay for long term disability leave, up to the maximum set in chapter 18 (3) of this MOU.

D. Permanent employees who retire during the fiscal year will be compensated on a pro-rated basis subject to their formal retirement date.

E. Subject to the approval of his/her department head, the employee may elect to receive additional vacation credits in lieu of all or part of the sick leave incentive pay. This election must be indicated in writing and submitted to the Finance Office with department head's signature within ten working days of issuance of the notice from Finance. This election may not be reversed at a later date.

Beginning in December 2025, and each December thereafter, employees who want to cash out or sell back sick lea ve must irrevocably choose in writing, on a form available from the Human Resources Department, to cash out sick leave hours that are to be accrued and remaining unused in the following calendar year. Sick time balances rolled over from prior calendar yea rs are not eligible for cash out. Regardless of the number of hours irrevocably elected for cash out, the cash out will only be made from hours accrued during the calendar year and not otherwise used for time off or otherwise by the employee at the time o f the cash out. Cash outs shall be paid with the last paycheck in the following December after receipt of the irrevocable election form for those employees. In order to receive the cash out in December, the employee must qualify to do so under section A above.

Employees who do not submit an irrevocable election form by December 15th will be deemed as foregoing participation in the optional annual leave cash-out program for that following calendar year.

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National City City CouncilSeptember 2, 2025

National City City Council
September 2, 2025