Agenda packet, regular meeting — National City City Council, November 18, 2025 (part 1 of 3)

AGENDA
Consolidated Regular Meeting
City Council Chamber - 1243 National City
Boulevard, National City, CA
Ron Morrison, Mayor Scott W. Huth, Interim City Manager Marcus Bush, Vice-Mayor – District 4 Alejandro Hernandez, Acting City Manager Luz Molina, Councilmember- District 1 Barry J. Schultz, City Attorney Jose Rodriguez, Councilmember -District 2 Shelley Chapel, MMC, City Clerk Ditas Yamane, Councilmember – District 3
_______________________________________________________________________

The City Council also sits as the City of National City Community Development Commission, Housing Authority, Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the National City Redevelopment Agency
Thank you for participating in local government and the City of National City Council Meetings.

Meetings: Regular City Council Meetings are held on the first and third Tuesday of the month at 6:00 p.m. Special Closed Session Meetings and Workshops may be same day, the start time is based on needs. Check Special Agendas for times.

Location: Regular City Council Meetings are held in the Council Chamber located at City Hall, 1243 National City Boulevard, National City, CA 91950, the meetings are open to the public.

Agendas and Material: Agendas and Agenda Packet for items listed are available on the City website, and distributed to the City Council no less than 72 hours before the City Council Meeting.

Public Participation: Encouraged in a number of ways as described below. Members of the public may attend the City Council Meeting in person, watch the City Council Meeting via live web stream, or participate remotely via Zoom. Recording of Meetings are archived and available for viewing on the City’s website.

To listen to the live stream in Spanish, you must register for Zoom prior to the meeting for access.

All Zoom registration must be completed two (2) hours prior to the City Council Meeting for access.

Public Comment: Persons wishing to address the City Council on ma tters not on the agenda may do so under Public Comments. Those wishing to speak on items on the agenda may do so when the item is being considered. Please submit a Speaker’s Slip to the City Clerk before the meeting or immediately following the announcem ent of the item. All comments will be limited up to three (3) minutes. The Presiding Officer shall have the authority to reduce the time allotted to accommodate for a large number of speakers. (City Council Policy 104) All written comment must be submitted no later than four (4) hours prior to the start of the meeting to allow time for distribution to the City Council.

EFFECTIVE JANUARY 1, 2023
All Contributions to Candidates and Current Elected Officials are required to se lf-report a Declaration of Campaign Contribution to a Councilmember of more than $250 within the past year (effective Jan 1, 2023). This report may be included on the Public Comment Speaker Slip to be completed prior to the City Council Meeting.

Spanish Interpretation Services: Spanish Interpretation Services are available; please contact the City Clerk before the start of the meeting for assistance. [email protected] American Disabilities Act Title II: In compliance with the American Disabilities Act of 1990, persons with a disability may request an agenda in appropriate alternative formats as required by Title II. Any person with a disability who requires a modification or accommodation to participate in a meeting should direct such request to the City Clerk’s Office (619) 336-4228 at least 24 hours in advance of the meeting.

The City Council also sits as the City of National City Community Development Commission, Housing Authority, Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the National City Redevelopment Agency
Gracias por participar en las reuniones del gobierno local y del Consejo de la Ciudad de National City.

Reuniones: Las reuniones regulares del Consejo Municipal se llevan a cabo el primer y tercer martes del mes a las 6:00 p.m. La reunión especial de sesión privada y los talleres pueden ser el mismo día, la hora de inicio se basa en las necesidades. Consulte las agendas especiales para conocer los horarios.

Ubicación: Las reuniones regulares del Conce jo Municipal se llevan a cabo en la Cámara del Consejo ubicada en el Ayuntamiento, 1243 National City Boulevard, National City, CA 91950, las reuniones están abiertas al público.

Agendas y Material: Las Agendas y el Paquete de Agenda para los temas enumer ados están disponibles en el sitio web de la Ciudad y se distribuyen al Concejo Municipal no menos de 72 horas antes de la Reunión del Concejo Municipal. Regístrese para recibir notificaciones electrónicas cuando se publiquen artículos.

Participación pública: Se fomenta de varias maneras como se describe a continuación. Los miembros del público pueden asistir a la Reunión del Concejo Municipal en persona, ver la Reunión del Concejo Municipal a través de la transmisión web en vivo o participar de forma remota a través de Zoom. Las grabaciones de las reuniones están archivadas y disponibles para su visualización en el sitio web de la Ciudad.

Para escuchar la transmission en Español, registration por Zoom es requerido antes del comienzo de la sesión.

Todo registro para la trasmisión por Zoom debe completarse dos (2) horas antes de la Reunión del Concejo Municipal.

Comentario Público: Las personas que deseen dirigirse al Concejo Municipal sobre asuntos que no están en la agenda pueden hacerlo bajo Comentarios públicos. Quienes deseen hacer uso de la palabra sobre los temas del programa podrán hacerlo cuando se esté examinando el tema.

Por favor, envíe una solicitud del orador al Secretario de la Ciudad antes de la reunión o inmediatamente después del anuncio del artículo. Todos los comentarios estarán limitados a tres (3) minutos. El Presidente tendrá la autoridad para reducir el tiempo asignado para dar cabida a un gran número de oradores. (Política del Concejo Municipal 104)

Si desea enviar comentarios por escrito, envíe un correo electrónico a la Oficina del Secretario de la Ciudad al menos 1 hora antes de la Reunión del Consejo Municipal para dar tiempo a la distribución al Consejo Municipal.

Todos comentarios deben estar sometidos a más tardar cuatro (4) horas antes del comienzo de la sesión.

A PARTIR DEL 1 DE ENERO DE 2023
Todas las contribuciones a los candidatos y funcionarios electos actuales deben autoinformar una Declaración de contribución de campaña a un concejal de más de $ 250 en el último año (a partir del 1 de enero de 2023). Este informe puede incluirse en el Recibo del orador de comentarios públicos que se completará antes de la reunión del Concejo Municipal Servicios de interpretación en español: Los servicios de interpretación en español están disponibles, comuníquese con el Secretario de la Ciudad antes del inicio de la reunión para obtener ayuda.

Título II de la Ley de Discapacidades Americanas: En cumplimiento con la Ley de Discapacidades Americanas de 1990, las personas con discapacidad pueden solicitar una agenda en formatos alternativos apropiados según lo requerido por el Título II. Cualquier persona con una discapacidad que requiera un modificación o adaptación para participar en una reunión debe dirigir dicha solicitud a la Oficina del Secretario de la Ciudad (619) 336 -4228 al menos 24 horas antes de la reunión.

State of California )
)ss.

County of San Diego )

AFFIDAVIT OF POSTING
I, Shelley Chapel, MMC, City Clerk of the City of National City, hereby declare under penalty of perjury that this notice of a Regular Meeting was called by the City Council of the City of National City was posted and provided on Thursday, November 13, 2025, at 6:00 p.m. Said meeting to be held Tuesday, November 18, 2025, at 6:00 p.m. in the City Hall, City Council Chambers, 1243 Nation al City Blvd., in the City of National City, California. Said notice was posted on the Bulletin Boards in front of City Hall and the Library.

Shelley Chapel
Shelley Chapel, MMC, City Clerk

AGENDA
Consolidated Regular Meeting

Tuesday, November 18, 2025, 6:00 p.m.

City Council Chamber - 1243 National City Boulevard
National City, CA
Pages

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE TO THE FLAG

4. INVOCATION

5. PUBLIC COMMENT
In accordance with State law, an item not scheduled on the agenda may be brought forward by the general public for comment; however, the City Council will not be able to discuss or take action on any issue not included on the agenda. Speakers will have up to three (3) minutes.

6. PRESENTATION (Limited to Five (5) Minutes each)

6.1 National City Planning Commission and Housing Advisory Committee Annual Report 2025
5 7. REGIONAL BOARDS AND COMMITTEE REPORTS (Limited to Five (5) Minutes each) Per Government Code Section 53232.3(d) also known as AB1234:

Members of a legislative body shall provide brief reports on meetings attended at the expense of the local agency at the next regular meeting of the legislative body.

8. CONSENT CALENDAR
The Consent Calendar may be enacted in one motion by the City Council with a Roll Call Vote without discussion unless a Councilmember, a member of the Public, or the City Manager requests an item be removed for discussion. Items removed from the Consent Calendar will be considered immediately following the adoption of the Calendar.

8.1 Approval of Reading by Title Only and Waiver of Reading in Full of Ordinance on this Agenda

8.2 Approval of the City Council Meeting Minutes. 10
Recommendation:

Approve and file.

8.3 Acceptance of a Grant from the San Diego Seniors Community Foundation to Support Holiday-Themed Programming for Older Adults.
30 Recommendation:

Adopt the Resolution Entitled: “Resolution of the City Council of the City of National City, California, Authorizing the City Manager or His Designee to Accept the San Diego Seniors Community Foundation Grant in the Amount of $5,000 to Support Holiday-Themed Programming for Older Adults at the Kimball Senior Center and Authorizing the Establishment of Appropriations and a Corresponding Revenue Budget in the Amount of $5,000.”

8.4 Amending City Council Policy Nos. 101, 107, 121, 201, 203, 204, 206, 502, 703, and 707.
35 Recommendation:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Amending City Council Policy Nos. 101,107, 121, 201, 203, 204, 206, 502, 703, and 707.”

8.5 Authorization to Enter into a Grant Agreement with the County of San Diego for the Community Enhancement Program in the Amount of $20,000 for the “A Kimball Holiday” Event.
106
Recommendation:

Adopt a Resolution Entitled: “Resolution of the City Council of the City of National City, California, Authorizing the City Manager or Designee to Execute a Grant Agreement with the County of San Diego through its Community Enhancement Program in the Amount of $20,000 to Fund Enhancements for the “A Kimball Holiday” Event, and Authorizing the Establishment of Appropriations and a Corresponding Revenue Budget in the Amount of $20,000.”

8.6 California Library Adult and Family Literacy Services Grant Funds Acceptance. 116 Recommendation:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing the City Manager or His Designee to Accept the California Library Literacy Services (CLLS) Grant of $69,147 to Fund the National City Public Library’s Literacy Services Programs for Fiscal Year 2026 and Authorizing the Establishment of a Library Grants Fund Appropriation and Corresponding Revenue Budget in the Amount of $69,147.”

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8.7 Department of Alcoholic Beverage Control – Office of Traffic Safety Award of $30,000 to the National City Police Department
121
Recommendation:

Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing the Acceptance of the Department of Alcoholic Beverage Control’s Minor Decoy/Shoulder Tap Grant Project Funds in the Amount of $30,000, Funded by the California Office of Traffic Safety through the National Highway Traffic Safety Administration, and Authorizing the Establishment of a Fiscal Year 2026 Appropriation and Corresponding Revenue Budget in the Amount of $30,000.”

8.8 Dispense with Certain City Council Meeting Scheduled for December 16, 2025, Per City Council Policy No. 104.
136
Recommendation:

Approve by City Council Motion to Dispense with December 16, 2025 Meeting as Recommended by Staff.

8.9 2026 Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) Grant Number PT26055 in the Amount of $155,000.
137
Recommendation:

Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing the Acceptance of the 2026 Office of Traffic Safety Selective Traffic Enforcement Program Grant in the Amount of $155,000 and Authorizing the Establishment of an Appropriation and Corresponding Revenue Budget in the Amount of $155,000.”

8.10 Warrant Register No. 13 for the Period of 9/19/25 through 9/25/25 in the Amount of $3,511,912.75
186
Recommendation:

Ratify Warrants Totaling $3,511,912.75.

8.11 Warrant Register No. 14 for the Period of 9/26/25 through 10/2/25 in the Amount of $2,328,365.09
194
Recommendation:

Ratify Warrants Totaling $2,328,365.09.

8.12 Warrant Register No. 15 for the Period of 10/3/25 through 10/9/25 in the Amount of $2,265,263.50
211
Recommendation:

Ratify Warrants Totaling $2,265,263.50.

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9. PUBLIC HEARING
The following item(s) have been advertised as public hearing(s) as required by law.

9.1 Second Reading and Adoption of Multiple Ordinances Amending the National City Municipal Code Chapters 15.08, 15.14, 15.20, 15.24, 15.75, 15.78 and

15.79 Related to California Codes for Electrical, Energy, Building, Plumbing, and Mechanical.
218
Recommendation:

Adopt the Ordinances for the 2025 California Building Code; the 2025 California Residential Code; the 2025 California Existing Building Code; the 2025 California Electrical Code and 2023 National Electrical Code; the 2025 California Mechanical Code; the 2025 California Plumbing Code; the 2025 California Energy Code; the 2025 California Green Building Standards Code; and all Appendices Related to These Codes.

10. STAFF REPORTS

10.1 Approval of the Revision of the Information Technology Technician Classification
268
Recommendation:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Revising the Job Description for the Information Technology Technician Classification to Reflect Current Duties, Responsibilities, and Technology Standards.

10.2 AP Triton EMS Transportation & Optimization Study 272 Recommendation:

Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, Accepting the Emergency Medical Services (EMS) Transportation & Optimization Study Conducted by AP Triton Consulting and Directing the City Manager to Pursue the Development of a Municipal Ambulance Transport System.”

11. CITY MANAGER’S REPORT

12. ELECTED OFFICIALS REPORT

13. CITY ATTORNEY REPORT

14. ADJOURNMENT
Regular Meeting of the City Council of the City of National City - Tuesday, December 2, 2025 - 6:00 p.m. - Council Chambers - National City, California.

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City of National City

NATIONAL CITY PLANNING COMMISSION &
HOUSING ADVISORY COMMITTEE ANNUAL REPORT (FY 25)
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Meeting Statistics (FY 25)
2025
• Planning Commission Meetings
• 3
2024
• Planning Commission Meetings
• 5
• Joint Planning Commission &
Housing Advisory Meetings
• 1

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Commission Action
• Conditional Use Permit (7)
• Grocery & Restaurant Alcohol Sales
• Gas station mixed-use (denial)
• Code Amendment (1)
• Zoning Map Change
• Coastal Development Permit (1)
• CUP for alcohol
• Subdivision (2)
• East 21st Street (2 lots)
• Van Ness Avenue (2 lots)
• Zone Variance (1)
• New SFR
• Street Vacation (1)
• Orange Avenue

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Highlights
• Bylaws
• Review & Update
• Training
• Process & Procedures (Attorney)
• Planning Commissioner Academy (3)
• Membership
• Resignation (1)
• New appointee – 7 members

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Questions?

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AGENDA REPORT

Department: City Clerk's Office
Prepared by: Shelley Chapel, MMC, City Clerk
Meeting Date: Tuesday, November 18, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Approval of the City Council Meeting Minutes.

RECOMMENDATION:

Approve and file.

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

Meeting Minutes:

Special City Council Meeting – Closed Session of October 21, 2025 Regular City Council Meeting of October 21, 2025
Special City Council Meeting – Closed Session of October 24, 2025

FINANCIAL STATEMENT:

Not Applicable.

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.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A - Special City Council Meeting – Closed Session of October 21, 2025 – Meeting Minutes Exhibit B - Regular City Council Meeting of October 21, 2025 – Meeting Minutes Exhibit C - Special City Council Meeting – Closed Session of October 24, 2025 – Meeting Minutes

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SPECIAL MEETING MINUTES OF THE CITY COUNCIL

October 21, 2025, 4:00 p.m.

City Council Chamber - 1243 National City Boulevard
National City, CA

Present: Councilmember Molina
Councilmember Rodriguez (via Zoom)
Councilmember Yamane
Vice-Mayor Bush (arrived 4:13 p.m.)
Mayor Morrison

Others Present: Barry J. Schultz, City Attorney
Richard Romero, Assistant City Attorney
Shelley Chapel, City Clerk
Alicia Hicks, Director of Human Resources
Bruce Foltz, Director of Finance
Martin Reeder, Acting Director of Community Development Tonya Hussain, Deputy City Clerk
Angelita Palma, Community Development Manager

____________________________________________________________________

1. CALL TO ORDER
A Special Meeting of the City Council of the City of National City was called to order at 4:03 p.m. via teleconference and in the Council Chamber, located in City Hall, 1243 National City Boulevard, National City, California.

AB 2449 Request:

Councilmember Rodriguez requested to attend the meeting virtually due to “Just Cause. “ City Clerk Chapel confirmed that at least a quorum of the legislative body was present at the location of the meeting in City Council Chamber as identified on the agenda.

This was the first virtual City Council Meeting Councilmember Rodriguez had attended in 2025 under the AB 2449 provision. Councilmember Rodriguez stated that no one over the age of 18 was in the same location as he.

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ACTION: Motion by Councilmember Yamane, seconded by Councilmember Molina, to approve Councilmember Rodriguez’s request to participate remotely due to “Just Cause,” under AB 2449. The motion was approved unanimously by those present. Vice -Mayor Bush was absent.

2. ROLL CALL
Councilmembers present: Molina, Rodriguez (via Zoom), Yamane, Bush (arrived at 4:13 p.m.), Morrison

3. PLEDGE OF ALLEGIANCE TO THE FLAG
Councilmember Molina led the Pledge of Allegiance.

4. PUBLIC COMMENT (Public Comment will be restricted to Agenda Items Only) No Public Comment.

5. CLOSED SESSION
Members retired into Closed Session at 4:11 p.m. and returned at 6:06 p.m. with all members present in attendance: Bush (arrived at 4:13 p.m.), Rodriguez (via Zoom), Yamane, Morrison, Molina, Huth, Foltz, Hicks, Romero, and Schultz.

5.1 CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Employee Organizations:

Municipal Employees’ Association (SEIU, Local 221), and Police Officers Association (POA),
Unrepresented Groups: Executive, Confidential, and Management Agency Designated Representatives:

Steven Berliner (Labor Negotiator)
Scott Huth (Interim City Manager)
Steve Manganiello (Director Eng/PW Director)
Bruce Foltz (Finance Director)
Alicia Hicks (Human Resources Director)
Labor Negotiator Berliner entered Closed Session at 4:11 p.m. and left at 5:10 p.m.

Hicks and Foltz left Closed Session at 5:10 p.m. and Romero left Closed Session at 5:11 p.m.

5.2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Government Code Section 54956.9
Property: 921, 925 and 929 National City Boulevard, CA 91950 (APN's 556-471-03 and 556-471-04)
Agency Negotiation: City of National City
Negotiating Parties: Scott Huth (Interim City Manager), Angelita Palma (Community Development Manager)
Under Negotiation: Instruction to Negotiate

Palma and Reeder entered Closed Session at 5:11 p.m. and left at 5:37 p.m.

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5.3 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
Number of Potential Cases: 1

5.4 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
Number of Potential Cases: 1
Circumstances: City Council Item #11.1 on September 16, 2025, Demand to Cure Letter from Neighborhood Market Association

To be reported out at the Regular City Council Meeting following this meeting at 6:00 p.m.

6. ADJOURNMENT
Mayor Morrison adjourned to the Regular Meeting of the City Council of the City of National City, Tuesday, October 21, 2025, 6:00 p.m. in the Council Chamber, located in City Hall, 1243 National City Boulevard, National City, California.

The meeting adjourned at 6:06 p.m.

__________________________
Shelley Chapel, MMC, City Clerk
The foregoing minutes were approved at the Regular Meeting of November 18, 2025.

__________________________
Ron Morrison, Mayor

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REGULAR MEETING MINUTES OF THE CITY COUNCIL

October 21, 2025, 6:00 p.m.

City Council Chamber - 1243 National City Boulevard
National City, CA

Present: Vice-Mayor Bush
Councilmember Rodriguez (via Zoom)
Mayor Morrison
Councilmember Molina
Councilmember Yamane

Others Present: Scott Huth, Interim City Manager
Barry J. Schultz, City Attorney
Shelley Chapel, City Clerk
Christopher Sullivan, Police Captain
Alicia Hicks, Director of Human Resources
Tonya Hussain, Deputy City Clerk
Martha Juarez, Assistant Director of Engineering/Public Works Sergio Mora, Fire Chief

1. CALL TO ORDER
A Regular Meeting of the City Council of the City of National City was called to order at 6:16 p.m. via teleconference and in the Council Chamber, located in City Hall, 1243 National City Boulevard, National City, California.

AB 2449 Request:

Councilmember Rodriguez requested to attend the meeting virtually due to “Just Cause.” City Clerk Chapel confirmed that at least a quorum of the legislative body was present at the location of the meeting in City Council Chamber as identified on the agenda.

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ACTION: Motion by Vice-Mayor Bush, seconded by Councilmember Yamane, to approve Councilmember Rodriguez’s request to participate remotely due to “Just Cause,” pursuant to AB 2449. Motion passed by roll call vote.

2. ROLL CALL
Councilmembers present: Molina, Rodriguez (via Zoom), Yamane, Bush, Morrison Interpretation in Spanish provided by Carlos Diaz, Ruth Monroy and Luisa Diaz de Leon.

3. PLEDGE OF ALLEGIANCE TO THE FLAG
Vice-Mayor Bush led the Pledge of Allegiance.

4. INVOCATION
Invocation delivered by Pastor Xose y Ofelia Escamilla, Casa de Oracion, National City.

Councilmember Rodriguez left the dais at 6:28 p.m. and returned at 7:02 p.m.

5. PUBLIC COMMENT
Mayor Morrison summarized the process for acceptance of live public comment allowing two (2) minutes per comment and introduced City Clerk Chapel.

In-person comment: Virtual comment:

Paul Wapnowski Becky Rapp
Yareli Cruz Judi Strang
Jon Alva Madison Rapp
Brian Clapper
Larry Emerson
Ted Godshalk
Daniel Kim
MPV - Micaela Polanco
MLM - Luisa McCarthy
Alisha Morrison
Doyle Morrison
Carina
Geoffrey Schrock
Liliana Armenta

Written comment:

David Garcia - Unregulated Car Cruising
David Garcia - Resident Leaving Cat Food in Public Areas Ted Godshalk - Meetings
Michael Aguirre on Behalf of Micaela Polanco and Luisa McCarthy Councilmember Molina left the dais at 6:55 p.m. and returned at 6:57 p.m.

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TECHNICAL NOTE: Interpreters were experiencing technical difficulties during the hours of 6:00 p.m. and 8:00 p.m. Comments may be heard on the video of the meeting, however, not all interpretations were provided due to loss of connection with services.

6. PROCLAMATIONS AND RECOGNITION

6.1 Proclamation - Filipino American History Month
Mayor Morrison presented the Proclamation to Councilmember Yamane on behalf of the Filipino American Community recognizing Filipino American History Month.

7. REGIONAL BOARDS AND COMMITTEE REPORTS (Limited to Five (5) Minutes each) Councilmember Rodriguez shared discussions that were had at the MTS Public Safety Committee Meeting regarding fares and making the transit system safer.

Councilmember Yamane had nothing to report.

Councilmember Molina discussed an upcoming Board of Directors Meeting for SANDAG, reporting that herself as well as the two alternates for the City would not be in attendance due to a scheduled Special Meeting for interviews for the City Manager.

Vice-Mayor Bush reported attendance at an MTS Board Meeting, where Operations Plans, routes, fare increases, and the 12th and Imperial Avenue Terminal and affordable units were discussed.

Mayor Morrison provided an update on the Regional Solid Waste Association Meeting.

8. CONSENT CALENDAR
ACTION: Motion by Vice-Mayor Bush, seconded by Councilmember Mo lina to approve the Consent Calendar with the exception of Items 8.3, 8.5, 8.7, 8.9, 8.10, 8.11, and 8.12.

Motion carried by unanimous roll-call vote with the exception of Item 8.6 where Councilmember Yamane voted No.

Councilmember Rodriguez left the dais at 7:12 p.m. - 7:27 p.m.

8.1 Approval of Reading by Title Only and Waiver of Reading in Full of Ordinance on this Agenda
Motion carried by unanimous roll-call vote.

8.2 Approval of the City Council Meeting Minutes.

Approve and file.

Motion carried by unanimous roll-call vote.

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Item pulled for public comment.

8.3 Authorize the Purchase of Two (2) Chevrolet Tahoe Vehicles for the National City Police Department
Adopted Resolution No. 25-142.

Public Comment: Thomas Rike.

Recommendation: Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California,
1) Waiving the Formal Bid Process Pursuant to National City Municipal Code Section 2.60.260 Regarding Cooperative Purchasing and Authorizing the City to Piggyback onto State of California Contract # 1-22-23-23D with Winner Chevrolet for the Purchase of Two 2025 Chevrolet Tahoe Poli ce Pursuit Vehicles in a Not - To-Exceed Amount of $126,000 for the National City Police Department; and 2) Authorizing the City Manager to Approve Adjustments of up to $12,600 to the Not- To-Exceed Amount for the Purchase as a 10% Contingency for Unforeseen Fluctuations in Pricing.”
ACTION: Motion by Councilmember Molina, seconded by Councilmember Yamane to adopt the resolution.

Motion carried by unanimous roll-call vote.

8.4 Awarding a Contract to Fernan do Araiza dba His Construction Company for the National City Police Department Investigations Capacity Expansion Project, CIP No. 25-15.

Adopted Resolution No. 2025-143.

Recommendation: Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, 1) Awarding a Contract to Fernando Araiza dba His Construction Company in the Not-To-Exceed Amount of $248,169 for the National City Police Department Investigations Capacity Expansion Project, CIP No. 25-15; 2) Authorizing the Establishment of an Appropriation of $200,000 for the Project in the Development Impact Fees Fund (Police); 3) Authorizing a 15% Contingency in the Amount of $37,226 for any Unforeseen Changes; and 4) Authorizing the Mayor to Execute the Contract.”
Motion carried by unanimous roll-call vote.

Item pulled for public comment.

8.5 Increases to Salaries and Benefits for Executive, Management, and Confidential Groups.

Adopted Resolution No. 2025-144.

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Public Comment: Thomas Rike.

Recommendation: Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, Approving Salary and Benefit Changes for the Executive, Management, and Confidential Employee Groups and Authorizing a Fiscal Year 2025 -2026 Budget App ropriation in the Amount of $1,204,317 to Fund the Stated Salary and Benefit Increases.”
ACTION: Motion by Councilmember Yamane , seconded by Vice -Mayor Bush to approve only the Confidential Group with the Executive and Management Group portion to return at a future date.

Motion carried by unanimous roll-call vote.

8.6 Notice of Decision – Planning Commission Approval of a Zone Variance (ZV) for a Less -Than-Required Street Wall for a Proposed Development at a Property Located at 3040 East 16th Street.

Recommendation: Staff Recommends Approval of the Request for a Zone Variance, Subject to the Recommended Conditions in the Attached Planning Commission Resolution No. 2025 -09, and a Determination that the Project is Exempt from CEQA. The Granting of a Zone Variance is Allowable with Findings Pursuant to Section 18.12.120 of the Land Use Code.

Motion carried by 3-1 roll-call vote with Councilmember Rodriguez absent.

Ayes: Molina, Bush, Morrison
Nays: Yamane

Absent: Rodriguez

Item pulled for public comment.

8.7 Regional Cooperative Care Partnership Dissolution
Adopted Resolution No. 2025-145.

Public Comment: Thomas Rike.

Recommendation: Adopt the Resolution Entitled “Resolution of the City Council of the City of National City, California, Amending and Terminating the Regional Cooperative Care Partnership (“RCCP”) Joint Exercise of Powers Agreement and Dissolving the RCCP Effective December 31, 2025.”
ACTION: Motion by Vice-Mayor Bush, seconded by Councilmember Molina to adopt the resolution.

Motion carried by unanimous roll-call vote.

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8.8 Successor Agency Last and Final Recognized Obligation Payment Schedule (ROPS)
Adopted Successor Agency Resolution No. 2025-119.

Adopt the Resolution Entitled: “Resolution of the Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency Approving the Last and Final Recognized Obligation Payment Schedule (ROPS) for the Seven ROPS Periods Beginning July 1, 2026 through June 30, 2033 with Obligations Totaling $25,074,222, and Approving the Submittal of the Last and Final ROPS to the County of San Diego Countywide Redevelopment Successor Agency Oversight Board.”
Motion carried by unanimous roll-call vote.

Item pulled for public comment.

8.9 Vehicle Purchase for the Fire Department
Adopted Resolution No. 2025-146.

Public Comment: Thomas Rike
Recommendation: Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, 1) Waiving the Formal Bid Process Pursuant to National City Municipal Code Section 2.60.260 Regarding Cooperative Purchasing and Authorizing the City to Piggyback onto Sourcewell Contract #091521-NAF with National Auto Fleet Group for the Purchase and Buildout of a 2026 Ford Super Duty F-250 SRW (W2B) XLT 4WD Crew Cab; 2) Approving the Purchase of a Camper Shell from th e Lowest Responsive, Responsible Bidders; and 3) Approving the Establishment of Appropriations and Transfers and a Corresponding Revenue Budget in the General Fund and Vehicle Replacement Fund Based on Funding from the Lower Sweetwater Fire Protection Dist rict’s Equipment Replacement Fund in a Not-to-Exceed Amount of $81,476.76.” ACTION: Motion by Councilmember Molina, seconded by Vice -Mayor Bush to adopt the resolution.

Motion carried by unanimous roll-call vote.

Item pulled for public comment.

8.10 Warrant Register No. 7 for the Period of 8/08/25 through 8/14/25 in the Amount of $2,681,431.27
Councilmember Rodriguez left the dais at 7:12 p.m.

Public Comment received from Thomas Rike on Agenda Items 8.10, 8.11, and

8.12.

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Recommendation: Ratify Warrants Totaling $2,681,431.27
ACTION: Motion by Councilmember Yamane, seconded by Councilmember Molina to ratify the warrants for Agenda Items 8.10, 8.11, and 8.12.

Motion carried by 4-0 roll-call vote with Councilmember Rodriguez absent for agenda Items 8.10, 8.11, and 8.12.

Item pulled for public comment.

8.11 Warrant Register No. 8 for the Period of 8/15/25 through 8/21/25 in the Amount of $1,234,278.37
Ratify Warrants Totaling $1,234,278.37

ACTION: Motion by Councilmember Yamane, seconded by Councilmember Molina to ratify the warrants for Agenda Items 8.10, 8.11, and 8.12.

Motion carried by 4 -0 roll -call vote with Councilmember Rodriguez absent for agenda Items 8.10, 8.11, and 8.12.

Item pulled for public comment.

8.12 Warrant Register No. 9 for the Period of 8/22/25 through 8/28/25 in the Amount of $2,696,448.58
Ratify Warrants Totaling $2,696,448.58.

ACTION: Motion by Councilmember Yamane, seconded by Councilmember Molina to ratify the warrants for Agenda Items 8.10, 8.11, and 8.12.

Motion carrie d by 4 -0 roll -call vote with Councilmember Rodriguez absent for agenda Items 8.10, 8.11, and 8.12.

9. CONTINUED PUBLIC HEARING

9.1 Public Hearing: Second Reading and Adoption of a General Plan Amendment and Zone Change from (RS-2) to (MXC-1) for Properties Located at 3040, 3042-3046, 3102-3104, & 3106-3108 E. 16th St. and 1540 S. Harbison Ave.

Adopted Ordinance No. 2025-2549
Martin Reeder, Acting Director of Community Development did not provide a report as this is the second reading for adoption.

Mayor Morrison opened the public hearing at 7:32 p.m.

In-person comment:

Susmitha Kudari
ACTION: Motion by Vice -Mayor Bush, seconded by Councilmember Molina to close the public hearing.

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Motion carried by unanimous vote, of those present, by a roll call vote to close the public hearing. Councilmember Rodriguez absent.

Public Hearing closed at 7:34 p.m.

Councilmember Rodriguez returned to the dais at 7:43 p.m.

Councilmember Rodriguez left the dais at 8:07 p.m. - 8:18 p.m.

Staff Recommendation: Adopt the Ordinance Entitled, "An Ordinance of the City Council of the City of National City, California, approving a Zone Change for Properties Located at 3040, 3042 -3046, & 3106-3108 East 16th and 1540 South Harbison Avenue, Changing the Zone from Small Lot Residential (RS-2) to Minor Mixed-Use Corridor (MXC-1)."
ACTION: Motion by Vice -Mayor Bush, seconded by Councilmember Molina to adopt the Ordinance.

Motion carried by 3-1 vote by roll-call vote.

Ayes: Molina, Bush, Morrison
Nays: Yamane

Absent: Rodriguez

10. PUBLIC HEARING

10.1 Public Hearing and Introduction of Multiple Ordinances Amending the National City Municipal Code Chapters 15.08, 15.14, 15.20, 15.24, 15.75, 15.78 and 15.79 related to California Codes for Electrical, Energ y, Building, Plumbing, and Mechanical.

Recommendation: Continue this Item to the November 4, 2025 City Council Meeting in Order to Introduce the Ordinances for the 2025 California Building Code; the 2025 California Residential Code; the 2025 California Existing Building Code; the 2025 California Electrical Code and 2023 National Electrical Code; the 2025 California Mechanical Code; the 2025 California Plumbing Code; the 2025 California Energy Code; the 2025 California Green Building Standards Code; and all Appendices Related to these Codes; Receive Public Input; and Schedule for the Meeting of November 04, 2025, for Consideration and Adoption.

ACTION: Motion by Councilmember Yamane, seconded by Councilmember Molina to approve the staff recommendation.

Motion carried by 4-0 roll-call vote with Councilmember Rodriguez absent.

10.2 Public Hearing – Rescission of Ordinance 2025 -2547 and Re -Introduction of an Amendment of NCMC 9.38 Establishing a Tobacco Retail License Program Mayor Morrison introduced City Atto rney Schultz who gave the following statement:

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“This agenda item was placed on tonight's agenda as a result of a Cure and Correct Letter received from the Counsel for the Neighborhood Market Association. Their allegation was that the last adoption meeting was not properly noticed, according to the Brown Act it was a technical defect, indicating that Council was actually introducing an ordinance instead of adopting an ordinance.

However, the Neighborhood Market Associate did receive notice of the actual ordinance to be considered. They showed up in force, they made their concerns known to the council. In fact, the Council actually considered their objections and made a motion to support those objections. In essence, our review of it is that yes, there was a technical notice defect, but that there is no prejudice caused by that defect and that a different result would not have occurred. However, in order to avoid unnecessary litigation, we have determined that it would be better for us to be here tonight and ask Council to rescind the ordinance that was adoption and to reintroduce the ordinance for introduction.”
ACTION: Motion by Vice-Mayor Bush, seconded by Councilmember Yamane to rescind the Ordinance.

Motion carried by roll-call vote with Councilmember Rodriguez absent.

Ayes: Molina, Yamane, Bush, Morrison

Absent: Rodriguez
Mayor Morrison confirmed with staff that the there were no changes. The Mayor read the title into the record.

Councilmember Rodriguez left the dais at 8:34 p.m. - 8:42 p.m.

Mayor Morrison left the dais at 8:54 p.m. - 8:57 p.m.

Councilmember Rodriguez left the dais at 9:05 p.m. - 9:08 p.m.

In-person comment:

Robin Madaffer - SD Land Lawyer
Wessam Rabbah
Emily Miller
Ronny
Rick Samdel
Larry Emerson
Leigh Martin
Jack Bozzi
Janan Moin
Jeremy Ogul
Alma Kassy
Lawrence Heriz
Nadia
Haitham Bidi

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Jeff Mansour
Cynthia Knapp - Save San Diego
Irma Hernandez
Toby Salem
Karen McManus
Ghali Dikho
Gloria Salis
Bryan Lam
Lance Hermes
Tony Konja
Manuel Andrade
Hadil Shamoon
Vincent Yanez
Margarita Moreno
Chris H.

Mike Raton
Mike Hermes
Jim Madaffer
Registered position, did not wish to speak:

In Favor:

Edwin Real
Carmen Gaxiola
Micaela Polanco
Luisa McCarthy
Paul Wapnowski
Alicia Sanche
Carmen Arroyo
Monserrat Hernandez
In Opposition:

Stephen Gaspar
Jim Hanna
Delon Yosif
Alphia Duncan
Evan Pheland
Jessica Kephart
Kamila Pheland

Virtual comment:

Alex Munoz
Peggy Walker
Blythe Young
Barbara Gordon
Megan Stuart

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Jennifer Gill
Laina Delgado Flores
Judy Strang
Written comment:

Robin Madaffer - SD Land Lawyers
Kyle Alderman - SD Land Lawyers
Alessandra Magnasco - CA Fuels Convenience Alliance
Jean Duffy
Leslie Johnson
Scott Knutson
Elizabeth Murphy
Gabriela Romero
Mirna Sallo
Ansam Goro
Manveer Sahota
ACTION: Motion by Councilmember Yamane , seconded by Councilmember Molina to close the public hearing.

Motion carried by unanimous roll-call vote.

Public Hearing closed at 9:09 p.m.

ACTION: Motion by Councilmember Molina , seconded by Vice -Mayor Bush to introduce the Ordinance to include the following changes:

Section 9.38.050 Section(b) to add outside advertising, Section 9.38.110 Section(a) to strike the sentence "Tobacco Retailer License may be transferred from one person to another, or from one location to another." Section 9.38.160 (a) regarding violations, include language provided by San Diego Land Lawyers including higher fines with one change, removing the fifth violation which would be license revocation would apply on the fourth violation.

Recommendation: Rescind Ordinance 2025 -2547 and Re -Introduce the Ordinance Entitled, “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.”
ACTION: Motion carried by unanimous roll-call vote.

At 10:39 p.m. Mayor Morrison reminded the City Council of Policy No. 104 that requires the City Council Meeting to be adjourned no later than 10:30 p.m. unless extended by Council vote.

ACTION: Motion by Councilmember Molina, seconded by Vice-Mayor Bush to extend the meeting beyond 10:30 p.m.

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Motion carried by unanimous roll-call vote.

Councilmember Rodriguez left the meeting at 10:39 p.m.

Mayor Morrison called for a break 10:41 p.m. - 10:45 p.m.

Mayor Morrison released the interpreters at 10:55 p.m.

10.3 Public Hearing - 2025 Development Impact Fees Schedule Mayor Morrison inquired with staff to the possibility to continue the item to the next meeting due to the written comment received. Councilmember Molina proposed that this item be held over until the November 4th City Council meeting.

Written comment:

Stephan Gaspar - KIRE Builders Inc.

Adrian Luna - BIA
Recommendation: Hold a Public Hearing and Adopt the Resolution Entitled, “Resolution of the City of National City, California, Adopting the 2025 Development Impact Fee Schedule.”
ACTION: Motion by Mayor Morrison, seconded by Councilmember Molina to continue the item to the November 4th City Council Meeting.

ACTION: Motion carried by unanimous roll-call vote of those present .

Councilmember Rodriguez was absent.

Ayes: Molina, Yamane, Bush, Morrison

Absent: Rodriguez

11. STAFF REPORTS

11.1 Amending City Council Policy No. 105 – Request by Member of the City Council to Place an Item on a City Council Agenda
Adopted Resolution No. 2025-148
Recommendation: Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Approving Amended City Coun cil Policy No. 105, Request by Member of the City Council to Place an Item on a City Council Agenda.”
ACTION: Motion by Councilmember Molina, seconded by Councilmember Yamane to adopt the resolution to include an amendment eliminating a partial sentence under 2(a) beginning with "Request may be submitted to be agenized at the initial City Council Meeting in which the matter will be heard." Motion carried by unanimous roll-call vote of those present. Councilmember Rodriguez was absent.

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Ayes: Molina, Yamane, Bush, Morrison

Absent: Rodriguez

11.2 Update on Housing Production in the City
Mayor Morrison introduced Martin Reeder, Interim Community Development Director.

Recommendation: File the Report.

ACTION: Motion by Vice-Mayor Bush, seconded by Counci lmember Yamane to file the report.

Motion carried by unanimous roll -call vote of those present. Councilmember Rodriguez was absent.

Ayes: Molina, Yamane, Bush, Morrison

Absent: Rodriguez

11.3 Follow-Up to Policy 105 Request – Activating Cultural E conomic (ACE) Opportunities Initiative Presentation
Mayor Morrison introduce d the ACE group who presented the PowerPoint Presentation: Presenter Karen Azhocar McManus Executive Director National City Chamber of Commerce. Councilmembers provided feedback.

Recommendation: That the City Council Receive a Formal Presentation from the National City Chamber of Commerce on the Activating Cultural Economic (ACE) Opportunities Initiative and Provide Council Discussion and Direction on Next Steps.

No vote needed.

12. CITY MANAGER’S REPORT
No Report.

13. ELECTED OFFICIALS REPORT
Closing remarks were provided by members of the City Council.

14. CITY ATTORNEY REPORT
Mayor Morrison introduced City Attorney Schultz who reported that there was no reportable action on Closed Session agendas Item 5.1 through 5.4.

CLOSED SESSION

5.1 CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Employee Organizations:

Municipal Employees’ Association (SEIU, Local 221), and

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Police Officers Association (POA),
Unrepresented Groups: Executive, Confidential, and Management Agency Designated Representatives:

Steven Berliner (Labor Negotiator)
Scott Huth (Interim City Manager)
Steve Manganiello (Director Eng/PW Director)
Bruce Foltz (Finance Director)
Alicia Hicks (Human Resources Director)

5.2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Government Code Section 54956.9
Property: 921, 925 and 929 National City Boulevard, CA 91950 (APN's 556-471- 03 and 556-471-04)
Agency Negotiation: City of National City
Negotiating Parties: Scott Huth (Interim City Manager), Angelita Palma (Community Development Manager)
Under Negotiation: Instruction to Negotiate

5.3 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
Number of Potential Cases: 1

15. ADJOURNMENT
Mayor Morrison adjourned to the Regular Meeting of the City Council of the City of National City, Tuesday, November 4, 2025, 6:00 p.m. in the Council Chamber, located in City Hall, 1243 National City Boulevard, National City, California.

The meeting adjourned at 11:50 p.m.

_________________________
Shelley Chapel, MMC, City Clerk
The foregoing minutes were approved at the Regular Meeting of November 18, 2025.

__________________________
Ron Morrison, Mayor

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SPECIAL MEETING MINUTES OF THE CITY COUNCIL

October 24, 2025, 8:30 a.m.

City Council Chamber - 1243 National City Boulevard
National City, CA

Present: Councilmember Molina
Councilmember Rodriguez
Councilmember Yamane (arrived at 9:00 a.m.)
Vice-Mayor Bush
Mayor Morrison

Others Present: Barry J. Schultz, City Attorney
Shelley Chapel, City Clerk (Via Zoom)
Alicia Hicks, Director of Human Resources
Tonya Hussain, Deputy City Clerk

____________________________________________________________________

1. CALL TO ORDER
A Special Meeting of the City Council of the City of National City was called to order at 8:35 a.m. via teleconference and in the Council Chamber, located in City Hall, 1243 National City Boulevard, National City, California.

2. ROLL CALL
Councilmembers present: Molina, Rodriguez, Yamane (arrived at 9:00 a.m.) , Bush, Morrison

3. PLEDGE OF ALLEGIANCE TO THE FLAG
Councilmember Rodriguez led the Pledge of Allegiance.

4. PUBLIC COMMENT (Public Comment will be restricted to Agenda Items Only) No Public Comment.

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5. CLOSED SESSION
Members retired into Closed Session at 8:37 a.m. and returned at 6: 30 p.m. with all members present in attendance: Bush Rodriguez , Yamane (arrived at 9:00 a.m. ), Morrison, Molina, Hicks, and Schultz.

5.1 PUBLIC EMPLOYEE EMPLOYMENT
Government Code Section 54957(b)
Position to be filled: City Manager

Upon returning from Closed Session at 6:30 p.m. City Attorney Schultz reported no reportable action.

6. ADJOURNMENT
Mayor Morrison adjourned to the Regular Meeting of the City Council of the City of National City, Tuesday, November 4, 2025, 6:00 p.m. in the Council Chamber, located in City Hall, 1243 National City Boulevard, National City, California.

The meeting adjourned at 6:30 p.m.

__________________________
Shelley Chapel, MMC, City Clerk
The foregoing minutes were approved at the Regular Meeting of November 18, 2025.

__________________________
Ron Morrison, Mayor

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AGENDA REPORT

Department: Community Services
Prepared by: Mike Pacheco, Director of Community Services Meeting Date: Tuesday, November 18, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Acceptance of a Grant from the San Diego Seniors Community Foundation to Support Holiday - Themed Programming for Older Adults.

RECOMMENDATION:

Adopt the Resolution Entitled: “Resolution of the City Council of the City of National City, California, Authorizing the City Manager o r His Designee to A ccept the San Diego Seniors Community Foundation Grant in the Amount of $5,000 to Support Holiday-Themed Programming for Older Adults at the Kimball Senior Center and Authorizing the Establishment of Appropriations and a Corresponding Revenue Budget in the Amount of $5,000.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

The San Diego Seniors Community Foundation (SDSCF) awarded the City of National City a grant in the amount of $5,000 under its No Senior Alone for the Holidays Initiative. The purpose of the grant is to support programs that bring joy, connection, and community engagement to older adults during the holiday season

The Kimball Senior Center will utilize the grant funds to host a variety of holiday act ivities including:
 Holiday Bingo with a membership renewal station and opportunity drawing for attendees who bring a new participant.
 IG Crochet Event offering a creative and social gathering for seniors.  Transportation Shuttle Services to and from the library to facilitate participation in events

These events will be free to participants and are designed to foster social interaction, reduce isolation, and promote mental well-being among local seniors.

The grant will be administered by the Community Servi ces Department, which operates the Kimball Senior Center. Reporting requirements are minimal and include a brief summary of event outcomes, participant feedback, and photos to be submitted to SDSCF by January 16, 2026

The City will provide acknowledgment of the Foundation’s support through event materials and social media posts, in accordance with SDSCF’s guidelines.

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FINANCIAL STATEMENT:

If approved, a budget adjustment would be made in the General Fund in the Community Services Department as follows:

Revenue Account No. 100-86-42-42100-3637- Donations
Expenditure Account No. 100-86-42-42100-7311- (Recreational Supplies)

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

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Resolution
Exhibit B – Grant Award Letter

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RESOLUTION NO. 2025 -

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

AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ACCEPT THE SAN DIEGO SENIORS COMMUNITY FOUNDATION GRANT IN THE AMOUNT OF $5,000 TO SUPPORT

HOLIDAY-THEMED PROGRAMMING FOR OLDER ADULTS AT THE KIMBALL SENIOR

CENTER AND AUTHORIZING THE ESTABLISHMENT OF APPROPRIATIONS AND A CORRESPONDING REVENUE BUDGET IN THE AMOUNT OF $5,000.

WHEREAS, the San Diego Seniors Community Foundation (SDSCF) has awarded the City of National City a grant in the amount of $5,000 under its No Senior Alone for the Holidays initiative; and

WHEREAS, the purpose of the grant is to support programs that bring joy, connection, and community engagement to older adults during the holiday season; and

WHEREAS, the Kimball Senior Center will utilize the grant funds to host a variety of holiday activities including Holiday Bingo, a Crochet Event, and shuttle transportation to ensure accessibility and participation for all seniors; and

WHEREAS, these programs promote social interaction, reduce isolation, and enhance the quality of life for National City’s senior population.

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

Section 1: That t he City Council of the City of National City hereby authorizes the acceptance of a $5,000 grant from the San Diego Seniors Community Foundation to support holiday-themed programming for older adults at the Kimball Senior Center.

Section 2: That the City Council authorizes the establishment of appropriations and a corresponding revenue budget in the amount of $5,000.

Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 18th day of November, 2025.

Ron Morrison, Mayor
ATTEST:

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

Barry J. Schultz, City Attorney

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P.O. Box 60515, Dan Diego, CA 92106 • 619.347.9936 • sdscf.org SDSCF is a 501(c)(3)
Nonprofit Corporation
Tax ID: 81-4910505
October 28, 2025
National City Kimball Senior Center
140 E. 12th Street
National City, CA 91950
Attn: Zaide Jurado [email protected]
Re: 2025 SDSCF No Senior Alone for the Holidays Grant Award Hello Zaide,
Congratulations! Your organization has been selected to receive a grant from the San Diego Seniors Community Foundation (the “Foundation”) in the amount of $5,000 (“the Grant”). The Grant is awarded for your organization to produce holiday-themed events to brighten the day of the older adults you serve. The Grants Committee of the Foundation approved funding to support the following purposes:
• Holiday Bingo – with membership renewal station, opportunity drawing ticket to those who bring a new person
• IG Crochet Event
• Transportation – shuttle services from the library
Reporting requirements for this Grant are minimal. We ask that you provide a summary of the event that is supported with the number of older adults served, a comment or two from the administrative staff, a volunteer who is helping with the event, and, if possible, a comment from an older adult who is a recipient of the effort. This report is due by Friday, January 16, 2026.

Photos are so impactful. On the day of the event, we ask that you share photos of your event on social media and tag the Foundation. As part of the final report, we request submittal of photos that can be used by the Foundation for future marketing efforts. We realize there may be issues of confidentiality and the need to receive consent for this purpose. Please utilize your internal practices for image and likeness authorization should you be able to provide pictures with clients.

The Foundation has contracted with a public relations firm to support our broader No Senior Alone Initiative. If applicable, we may seek to gain your cooperation with the publicizing of your event through a variety of media outlets. We will contact you to discuss further should an opportunity present itself.

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AGENDA REPORT

Department: City Clerk's Office
Prepared by: Shelley Chapel, MMC, City Clerk
Meeting Date: Tuesday, November 18, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

Amending City Council Policy Nos. 101, 107, 121, 201, 203, 204, 206, 502, 703, and 707.

RECOMMENDATION:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Amending City Council Policy Nos. 101,107, 121, 201, 203, 204, 206, 502, 703, and 707.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

As per Council Policy No. 101, the City Council Policy Manual is to be reviewed annually and updated as necessary. Staff has completed this review and is presenting the first group of proposed amendments for consideration to the following Council Policies: Nos. 101, 107, 121, 201, 203, 204, 206, 502, 703, and 707.

The redlined versions of the policies are also included, reflecting proposed edits and staff notes.

Clerical revisions have been made throughout for consistency with the City’s style guide and administrative procedures. In addition, a record of prior policy amendments has been added to the end of each policy to provide a historical reference of changes made over time.

The second group of proposed amendments for consideration will return to the City Council in January 2026.

FINANCIAL STATEMENT:

Not Applicable.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Communication and Outreach

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:

Not Applicable

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EXHIBITS:

Exhibit A – Policy No. 101 – City Council Policy Manual - Redline Exhibit B – Policy No. 107 – Appointments to BCCs – Redline Exhibit C – Policy No. 121 – Mayor and City Councilmember Office Budget – Redline Exhibit D – Policy No. 201 – Maintenance of Reserve Funds Exhibit E – Policy No. 203 – Investment Policy
Exhibit F – Policy No. 204 – Donation Acceptance Policy Exhibit G – Policy No. 206 – Debt Management
Exhibit H – Policy No. 502 – Public Improvements or Professional Service Contract Changes Exhibit I – Policy No. 703 – CFCs – Eliminate this Policy Exhibit J – Policy No. 707 – Alcohol Beverage License Application and Review Process

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: August 15, 2023

ADOPTED: July 14, 1987
POLICY # 101
TITLE: City Council Policy Manual
Background:

The City Council of the City of National City is charged with the responsibility of establishing municipal policies to guide the various functions of the City and, where necessary, to establish procedures by which functions are performed. Regulatory policies established by the City Council are usually adopted by ordinance and included in the Municipal Code, which establish the local laws. Other policies, however are also established, which by their nature, do not require adoption by ordinance. These policy statements adopted by resolution of the City Council need to be consolidated in a reference document for easy access.

Purpose
It is the purpose of this policy to establish procedures for the preparation, distri bution and maintenance of Council policies and the “City Council Policy Manual.”

Policy

1. To establish a City Council Policy Manual which shall contain all City policy statements adopted by resolution of the City Council.

2. Generally, policy statements in the City Council Policy Manual will include only such municipal matters for which the responsibility of decision is placed in the City Council by virtue of the Municipal Code, or specific ordinances, and resolutions.

3. All policy statements of the City Council shall be prepared in writing and approved by resolution. Once approved, policy statements will be electronically reproduced, distributed and included in the City Council Policy Manual . The Resolution Number and date of adoption will be notated on the last page of amended policy in the Prior Policy Amendments section..

4. Each policy adopted as part of the City Council Policy shall be adhered to by City departments as expressions of the City Council’s Policy. Only the City Council can waive the applicability of an adopted policy.

5. Each policy statement shall include: (a) a brief background description of a policy; (b) the purpose of the policy; (c) the policy statements; (d) other criteria or procedural sections as required; and (e) cross -reference notations as to appropriate provision in the Municipal Code, Administrative Regulations, etc.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: August 15, 2023

ADOPTED: July 14, 1987
POLICY # 101
TITLE: City Council Policy Manual

6. The City Manager shall be responsible for the preparation, continuing maintenance, and distribution of the City Council Policy Manual and additions or deletions thereto. The City Clerk’s Office shall retain the original adopted resolution and maintain a copy of the manual.

7. Each October, the City Council and City Manager shall review the City Council Policy Manual for any needed additions, deletions, or changes deemed appropriate at the time.

Nothing in this policy shall prevent any individual member of the Council, the City Manager, City Attorney, or the City Clerk from brin ging to the attention of the City Council any suggestions for manual revisions at other times during the year.

8. All newly-elected City Council Members , City Clerk, and City Treasurer shall receive a copy of the City Council Policy Manual and orientation from applicable department staff.

Related Policy References
None.

Prior Policy Amendments
July 14, 1987 City Council Adopted Format and Text as Guide for Council Policy Manual – No Resolution was adopted.

June 11, 2013 (Revised – No Resolution)
October 8, 2013 (Resolution No. 2013-147)
August 15, 2023 (Resolution No. 2023-115)

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees

PURPOSE

To establish a procedure to serve as a guide in making appointments to various City Boards, Commissions, and Committees. The City currently has the following Boards, Commissions, and Committees to which this Policy applies:

Mayor’s Appointments:

1. Board of Library Trustees

2. Community and Police Relations Commission

3. Park, Recreation, and Senior Citizens Advisory Committee

4. Public Art Committee

5. Sweetwater Authority

6. Traffic Safety Committee

7. Veterans and Military Families Advisory Committee

City Council Appointments:

1. Civil Service Commission

2. Planning Commission

3. Housing Advisory Committee including Ex-Officio Members

4. Port Commission (Per the San Diego Unified Port District Act, Section 16, this seat must be filled by a National City resident. The Commissioner shall be a resident of the City at the time of their appointments, and during their tenure.

POLICY

Appointment Process
A. Opportunity to apply. All interested individuals shall be given an opportunity to submit applications for vacancies on City Boards, Commissions, and Committees. Incumbent Appointees are not automatically re-appointed but are required to fill out an abbreviated application provided by the City Clerk, indicating their interest in continuing to serve.

B. Unexpired terms. If an incumbent Appointee was appointed to fill an unexpired term and the Appointee serves for less than one year in that position, the Council may re- appoint the incumbent without considering other applicants.

C. Vacancies. When vacancies occur, the following procedure shall be followed:

1. Schedule vacancy. When a term is expiring or expires, public notice of the vacancy shall be made, inviting interested individuals to submit applications for the vacancy on a form provided by the City Clerk on the City website.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees

Unscheduled vacancy. An unscheduled vacancy shall be filled according to Government Code Section 54974, which gener ally provides as follows: Whenever an unscheduled vacancy occurs, whether due to resignation, death, termination, or other causes, a special vacancy notice shall be posted in the Office of the City Clerk, the City website, outside City Hall on the Bulletin Board, and on City social media platforms not earlier than twenty (20) days before or not later than twenty (20) days after the vacancy occurs. The City Council shall not make a final appointment for at least ten (10) working days after posting the notice in designated locations. The notice’s posting and application period shall be thirty (30) calendar days. However, if it finds that an emergency exists, the City Council may, fill the unscheduled vacancy immediately. According to this section, a person appointed to fill the vacancy shall serve only on an interim basis until the final appointment.

The end of term for the members of Boards, Commissions, and Committees generally occurs in an annual rotation during the months of March and September.

Appointments will be considered at those times unless a vacancy resulting from a resignation results in the lack of a Quorum on the Board, Commission, or Committee, in which case the appointment could occur at the time of the unscheduled vacancy in accordance with the procedure set out above.

3. Government Code Section 40605, and National City Municipal Code Title 16, grants the Mayor, with the City Council’s approvals, the authority to make all appointments unless otherwise explicitly provided by statute. The exceptions are:

1. Civil Service Commission

2. Planning Commission

3. Housing Advisory Committee including Ex-Officio Members

4. Port Commission

The City Council fills vacancies on these bodies.

Implementation. Implementation of C ouncil policy for appointment to Boards, Commissions, and Committees requires the following:

1. Per Government Code Section 54972, on or before December 31 of each year, the City Council shall prepare a list of appointments of all regular and ongoing Boards, Commissions, and Committees appointed by the City Council. The City Clerk will prepare the list of all regular and ongoing Boards, Commissions, and Committees appointed by the Mayor or the City Council. The list shall contain a list of all terms that will expire during the next calendar year, the

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees incumbent appointee’s name, the appointment date, the term’s expiration date, and the position’s necessary qualifications . It shall also include a list of all Boards, Commissions, and Committees whose members serve at the City Council’s pleasure and the qualifications required for each position. This Local Appointments List shall be made available to the public on the City website.

2. Notice. A public notice for vacancies must be placed in the newspaper of general circulation within the City, on the City’s website, City Hall Bulletin Boards, and City social media platforms.

3. Expiration of term. All appointees will receive a letter as their terms expire asking if they would like to re-apply for the position.

4. Applications. Applications shall be available on the City website and in the City Clerk’s Office. Submissions must be received before the advertised deadline for consideration for the appointment. All applications will be retained in the City Clerk’s Office for one year from the date the application was submitted. During the one-year retention period of the application, an applicant shall be considered for other vacancies on Boards, Commissions, and Committees. The City Clerk’s Office will notify the applicant being considered for an appointment to confirm that they are still interested in volunteering.

5. A member may only serve on one (1) Board, Commission, or Committee at a time.

If an applicant applies for another position on a different Board, Commission, or Committee, that applicant will forfeit the prior seat and a vacancy will occur per policy.

6. Residency requirement: If a position on the Board, Commission or Committee is for a resident, the applicant must be a resident at the time of submitting the application.

The address must be an identifiable National City address, with verification by the City Clerk’s Office. If an applicant is found to be a non-resident, they will not be considered. They will be encouraged to apply for a non-resident seat when available.

7. Interviews:

a. Mayor Appointments: Interviews for Mayoral appointments will be conducted by the Mayor outside of the public meeting and scheduled by the Mayor’s Office.

b. City Council Appointments: Interviews for the four (4) Civil Service Commission, Planning Commission, Housing Advisory Committee, and

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees Port Commission who serve at the City Council’s pleasure and are appointed by the City Council as a body will be interviewed in the public forum at a City Council Meeting as described below.

b.c. The City Clerk’s Office makes attempts to inform applicants of the date and time of the City Council meeting so that the applicant may attend in person or via Zoom for interviews and questions. Attempts are made via emails, and telephone calls prior to the meeting.

8. Mayoral Appointments:

The Mayor will make the motion to appoint (naming the appointee) and Councilmembers may second the motion. The City Clerk will then take a roll call vote of the City Council. A majority vote of the City Council will be required for the appointment. If the majority of the City Council choose to deny the proposed appointment, the Mayor shall either propose an alternative candidate from the current application pool or choose to reopen the application period and return to the City Council at a future City Council Meeting with a different applicant for consideration. If a Mayoral Appointment is not approved by the majority of the City Council by confirmation, that applicant is removed from the pool for that seat. The Mayor will return to a future meeting with a substitute Mayoral appointment.

9. For City Council Appointments, the Interview Process is as follows:

a. The City Clerk will provide an over view of the Board, Commission, or Committee(s) with current vacancy (ies). The Mayor will introduce the applicant and two (2) questions will be asked of each applicant on behalf of the City Council.

b. Each applicant is given two (2) minutes to make a brief introduction of themselves and their qualifications to the City Council.

c. Mayor and City Councilmembers will ask questions of each applicant. All applicants must be asked the same questions.

d. Total time per applicant is five (5) timed minutes with time allowed for clarification at the discretion of the Ci ty Council, not to exceed ten (10) minutes total per applicant.

e. All appointments and interviews before the City Council will be scheduled

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees as needed to fill unexpected vacancies, with every effort to be made before an individual's term expires. Interviews may take place at one meeting, with appointments made at a subsequent meeting.

9. Vacancies for City Council Appointed Po sitions. If the vacancy is for a City Council appointed position, and there is more than one (1) applicant for a given position, the voting process will proceed as follows: Once the interviews are complete, each Councilmember votes for their choice via a written ballot provided by the City Clerk.

Each Councilmember shall print and sign their name
on the ballot. All ballots shall be considered a public record and be open to inspection by the public. The ballots are passed to the City Clerk who announces the number of votes for each candidate.

If the appointment process is conducted via a virtual meeting the process is the same except the ballot/vote process. The City Clerk’s Office will provide a Vote Sheet (a piece of paper electronically) with the name of each applicant to be considered. Councilmembers will mark their paper, fold it and hand to the City Clerk as they are collected. If a member is virtual, they will announce their vote verbally first before any other votes are read. The City Clerk will tally the votes and will then confirm the votes with a ve rbal roll call. The applicant with the most votes is appointed.

In the event of a tie, each Councilmember votes again until one (1) candidate has the majority vote and is declared to be the newly–appointed member of the Board, Commission, or Committee.

10. Re-appointment beyond two terms. Anyone wishing to be re-appointed to any Board, Commission, or Committee and has served two or more full terms already must be approved by a four-fifths vote of the City C ouncil. If all five members of the City Council are not present, or if one member abstains or recuses their vote, the four- fifths requirement shall be changed to require only a simple majority.

11. Report to Council:

All applications received for vacancies, whether Mayoral Appointment or City Council Appointment, will be attached to the staff report to Council. All applications will have private personal information redacted (name, street numbers and name of street address, and phone number). This redacted information is in alignment with Government Code Section 6255(a) because the public interest served by not disclosing the applicant’s personal, private information and protection of the

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees applicant’s right to privacy outweighs the public interest served by disclosing that information.

12. An automatic vacancy upon becoming a Non-Resident. An unscheduled vacancy automatically occurs when a resident holding an appointment position on a City Board, Committee, or Commission becomes a non-resident by moving out of National City limits. When an unscheduled vacancy occurs due to a resident becoming a non-resident, the unscheduled vacancy may be filled as follows:

a. A special vacancy notice shall be posted in the Office of the City Clerk, and in other places as directed by the City Council, not earlier than 20 days before or not later than 20 days after the vacancy occurs. Final Appointment at a City Council Meeting shall not be made by the Appointing Authority for at least 10 working days after the posting of the notice in the City Clerk’s Office.

b. The Appointing Authority may appoint the former resident to a Non- Residential position if a Non-Residential position is vacant.

However, the Appointing Authority may, if it finds that an emergency exists, fill the unscheduled vacancy immediately. A person appointed to fill the vacancy shall serve only on an acting basis until the final appointment is made pursuant to this section.

13. Only City Residents may be elected to Chair and Vice-Chair positions. To be eligible to be elected as the Chairperson of a City Board, Committee, or Commission, the member must be a resident of the City.

14. Resignations, Attendance, Training, and Removals

Resignation:

If a Commissioner or Member of a Board, Committee, or Commission is unable to continue serving because of health, business requirements, or personal reasons, a letter of resignation shall be submitted to the City Clerk, who will present to the City Council.

Attendance:

Regular attendance at meetings is critical to be effective operation of City Boards, Commissions, and Committees. The City Council relies on the advice of the City’s

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees Boards, Commissions, and Committees, which is the result of discussions among appointed members. The City Council anticipates that members of Boards, Committees, and Commissions shall make every reasonable effort to attend all regular and special meetings of their respective Boards, Commissions, and Committees, and to be prepared to discuss matters on their respective agendas.

A Commissioner or Member of a Board, Committee, or Commission shall be considered removed from any advisory board under the following conditions:

1. A Commissioner or Member of a Board, Committee, or Commission with unexcused absences from three consecutive regularly scheduled meetings.

2. A Commissioner or Member of a Board, Committee, or Commission misses more than 25% of the advisory body’s meetings in a calendar year.

3. A Commissioner or Member of a Board, Committee, or Commission must be present at least one hour, or 50% of the entire meeting, whichever is less, to be counted as present for purposes of attendance.

Excused Absences:

An “excused absence” is only granted when absolutely necessary and pre- approved if at all possible. The City Council encourages Boards, Commissions, and Committees to refrain from scheduling meetings on cultural and religious holidays in order to encourage full participation by all Commissioners, Board Members, and the public. The pre-approval of excused absences will be by the body as a whole and documented in the meeting minutes.

Excused absences are listed as follows:

1. Illness of the Commissioner or Member of the Board, Committee, or Commission, their family member, or their personal friend;

2. Business commitment of the Commissioner or Member of the Board, Committee, or Commission that interferes with the attendance at a meeting;

3. Attendance of the Commissioner or Member of the Board, Committee, or Commission at a funeral, religious service or ceremony, wedding, or other similarly-significant event; or

4. Other reason for which the Commissioner or Member of the Board, Committee, or Commission has given notice to the Chairperson or Secretary of their unavailability fifteen (15) days in advance, as long as the unavailability is not expected to last longer than 30 days.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees

Removal:

The Secretary or Lead of each Board, Commission, or Committee will report the attendance to the Office of the City Clerk on a monthly basis. If the attendance or absences fall within these guidelines, the Office of the City Clerk will prepare a report to City Council for review and possible removal of the Commissioner, Member, or Alternate sitting on the Board, Committee, or Commission. Any Commissioner, Member, or Alternate sitting on a Board, Committee, or Commission may be removed from office at any time by a simple majority vote of the City Council at a regularly scheduled Council meeting with or without cause.

Mandatory Training and Filing Requirements:

Commissioners and Members of Board, Committee, or Commission, as appointed by the legislative body, are entrusted with certain responsibilities and concomitant training and reporting. The following are requirements of Commissioners and Members of Boards, Commissions, and Committees. This training is required to be completed within 30 days of appointment or notification.

1. Oath of Office (Article XX of th e California Constitution, and California Government Code Section 36507)

2. Fair Political Practices Commi ssion (FPPC) Statement of Economic Interest Form 700 Filing (California Government Code Section 87100 et seq)

3. AB1234 Ethics Training (California Government Code Section 53235.1(b))

4. Anti-Sexual Harassment Training

5. Brown Act Training

6. Social Media Training

7. Any training required by State Law, Federal Law, or City Policies.

All training is offered in a variety of formats including in person, via Zoom, training website/software, and pre-recorded video. Currently, these are all requirements of the Mayor and City Council, and City staff.

Removal:

Failure to complete any of these requirements within 30 days of the appointment date or date of notification is cause for automatic removal.

Page 46 of 400 ends

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16,
2021November 18, 2025
ADOPTED: June 17, 1986
POLICY # 107
TITLE: Appointments to Boards, Commission and Committees

Related Policy References
Government Code Section 40605
Government Code Section 54970, et seq.

Article XX of the California Constitution, and California Government Code Section 36507 California Government Code Section 53235(b)
California Government Code Section 87100 et seq
National City Municipal Code Title 16 (pending)

Prior Policy Amendments:

February 2, 2021 (Resolution No. 2021-08)
May 19, 2020 (Resolution No. 2020-95)

November 9, 1993 (Resolution No. 93-173)
June 11, 2013 (Revised – No Resolution – Refer to Meeting Minutes) October 8, 2013 (Resolution No. 2013-147)
May 19, 2020 (Resolution No. 2020-20)

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Page 1 of 5 ends

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

CITY OF NATIONAL CITY
NCIL POLICYTITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED: November 18, 2025

PURPOSE

The City Council of National City, duri ng the adoption of the Fiscal Year 2023-2024 City Budget, included a $100, 000 appropriation for each Councilmember’s budget.

The purpose of this policy is to establis h uniform guidelines and procedures for the expenditure of the funds to ensure that the funds are expended in the best interests of the Council District and/or City, as applicable, and are consistent with the objectives of the City’s Strategic Plan and City Council priorities, and as well as follow City procurement procedures.

POLICY

A. The Mayor and each Councilmember must submit an Annual Appropriation Request for review by the Department of Finance and the City Manager as part of the City’s Annual Budget Adoption process.

Budget categories are as follows:
 Personnel Services
o Part Time Positions
o Full Time Positions
o Professional Services (consultants)
 Governmental Purposes: These expenditures must be consistent with the City’s adopted Strategic Plan, and City Council priorities and City procurement procedures and spent for the benefit of within the District of the Councilmember. (See attached Strategic Plan 2020 -2025).  Training, Travel and Subsistence: These expenditures are for conferences or training registration fees, travel co sts associated with getting to the training/conference, and l odging and meals during the training/conference.

The training/conference must be directly related to City business and have a direct benefit to the Cit y and, therefore, will be considered City business.

When a Councilmember attends a confer ence/training at the expense of the City, he/she must report out on the conference/training in accordance with AB 1234. Attachment 2 to this policy is the list of approv ed conferences and trainings. Conferences/trai nings not liste d will require prior City Council approval before any expenditures of City funds may be made. All requests for reimbursement for travel and confer ence/training expenses must be

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TITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED:

Page 2 of 5 ends

consistent with City Council Policy #109 and include estimated costs and the event agenda . and must be pre-approved by the Purchasing Review Committee.
 These funds may also be used for travel, lodging and meals related to legislative advocacy provided the legisl ative advocacy is consistent with the City’s adopted legislative platform.
 Materials and Supplies : These expenditures are for general office supplies, supplies for events or outreach. Purchase of materials and supplies must be consistent with the City’s Purchasing Policy.

B. Professional Services : Councilmembers may require, in addition to administrative support, services of a recurring nature or for a specific one-time project which cannot be routinely provided by City staff, either because of the expertise required or the ongoing workl oad. Consultants may be employed where City staff is unable to accommodate this need.

It is the policy of the Council that the selection of consultants by Mayor and/or Councilmembers shall be made from as broad a base of applicants as possible and that the choice be based on demonstrated capabilities or specific expertise. The Council encourages the engagement of lo cal consultants where possible. The type and scope of the required service or product must be clearly defined by the Mayor/Counc ilmember so the City Manager can determine whether it can be most efficient ly provided by City staff or by a consultant and, where a consultant will be chosen, whether licensed or non- licensed services are necessary.

A minimum of three quotes or a written sole-source justification is required for consultant contractsA minimum of three qualified consultants should be considered for selection except in those cases where unique expertise is required and can be provided only by a limited number of available consultants.

All consultant contracts must be revi ewed by the City Attorney’s Office for compliance with AB 5 and shall be on a City Attorney approved contract form.

All consulting contracts which exceed $50,000 shall be reviewed and approved by the City Council. At a mini mum, the following information shall be provided to the Council for review:
* The length of time the consulta nt has been in the business required by the scope of work.
* Proof of expertise and demonstrat ed success in the field of expertise required by the scope of work.

Page 49 of 400 ends

TITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED:

Page 3 of 5 ends

* All Councilmembers engaging consultants or vendors must complete and file a Conflict-of-Interest A ttestation before any payment is processed.Disclosure of economic inte rests and relationships between the Mayor/Councilmember and the consultant during the past 12 months.

For contracts below $50,000, the City Manager has the discretion as to whether City Council approval is required.

C. Part Time and Full Time Personnel: Part time and full time personnel shall be recruited and hired in accordance with the City’s personnel hiring policies and practices.

D. Restrictions on the Use of Public Resources : All expenditures are subject to the restrictions on the use of public funds including, but not limited to:
a. Gift of public funds prohibited.
b. Use of public funds or resources for political purposes is prohibited. c. Political activities durin g the workday are prohibited. d. Public resources cannot be used for political campaign activities.

E. Social Media: To the extent public resources (i .e. funds or staff) are used for social media, the City’s Social Media Policy is applicable. The Social Media Policy is Policy 1.13 and is located in the City Administrative Manual.

F. Reimbursem ent Procedure: Prior to the expenditur e, all reimbursement requests must be submitted to the Mayor (acting as the Department Head) for approval. The request shall show the details of the proposed expenditure with supporting documents. The Mayor sha ll review the request for compliance with this policy and any other applicable policy and affix his/her signature to signify approval and submit the request to the City Manager for final approval.

Should the Mayor not approve a reimbur sement request he/ she shall notify the City Council within 24 hours of the denial and prov ide the basis for the denial. In the event the Mayor and City Manager disagree as to the approval/denial of the specific request, the request shall be submitted to the City Council for consideration.

G. District Budget Carryover: Council District funds shall be expended during the fiscal year approved. Unex pended funds shall not carry over into the next fiscal year.

H. Non-profits: Council District funds shall not be used to contribute to or support non-profit or tax exempt organizations.

I. This policy shall be reviewed on an annual basis by the City Manager’s Office and the Finance Department, with recommended updates brought forward for Council consideration.

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TITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED:

Page 4 of 5 ends

J. The purchase of items t hat will have the name of the Mayor or Council member on the item shall follow local state and federal laws and it is the responsibility of the elected official to ensure compliance. It is important for the public, and residents to know who the elected repres entatives are that represent them.

That said, it is the Council’s policy that the name of an elected official should be subordinate to the information provided in or on, the flyer, publication or item wherein the name will be place d. The City Council may determine size restrictions for any item that will be distributed by the City (electronically or by other means)
K. Refreshments for district events: the maximum amount the City will reimburse for a single District event is $50. Cit y wide events shall be approved by the City Council
Branding items are for the entire City, i.e.“City of National City.” No branding items or any give-a-ways shall be paid by City funds for districts.

Clothing: The City shall pay for two shirts and one hat per year. A jacket may be purchased once every 4 years and the costs reimbursed is limited to $120.

L. Accountability and Reporti ng: The Finance Department shall prepare quarterly expenditure reports for each Council offi ce and provide them to the full City Council.

M. Use of Public Funds for Non-Public Purposes Prohibited:
a. All expenditures made under this policy must serve a clear public purpose that benefits the residents or community of National City as a whole.
b. Funds may not be used for any activi ty, purchase, or production that primarily promotes, ma rkets, or personally benefits an individual Councilmember or elected official. This includes, but is not limited to:
i. Printing or digital production of materials (e.g., flyers, banners, canopies, or videos) that highlight or brand one Councilmember independent of City programs.
ii. Use of office budgets for pers onal branding, campaign logos, political slogans, or materials resembling campaign advertising. iii. Expenditures for community events, advertisements, or sponsorships that are not mutually available to all Council offices or do not serve a Citywide benefit.
c. All media or communications mate rials produced with City funds must be coordinated through the City’s Public Information Officer and adhere to the City’s adopted Social Medi a and Communications Policy to ensure consistency, neutrality, and equal access across all Council offices.

Page 51 of 400 ends

TITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED:

Page 5 of 5 ends

Violations of this section will be considered misuse of public funds and subject to corrective action, incl uding denial of reim bursement, public disclosure in quarterly reports, and potential referral to the City Attorney or FPPC for review.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: March 4, 2025
November 18, 2025
ADOPTED: June 26, 1985
POLICY #201
TITLE: Maintenance of Reserve Funds
Purpose

The purpose of this policy is to ensure the City’s ability to withstand unexpected financial emergencies such as those that may result from natural disasters, revenue shortfalls, or unanticipated expenditures of a non-recurring nature, and to accumulate funds for large-scale purchases.

Policy

The City will accumulate and maintain reserves in the categories and at the target levels described below. The actual amount of any of the reserves may exceed its target level because any additional amounts would increase the financial security of the City.

 GENERAL FUND ECONOMIC CONTINGENCY RESERVE: an amount equal to twenty percent (20%) of a single year’s budgeted General Fund operating expenditures. “Operating expenditures” shall be defined as all expenditures, except those of a capital nature, plus operating subsidies provided to the Library Fund, Parks Fund, and Personnel Compensation Fund (OPEB benefits payment s), or to any other fund as determined by the City Council. Formal City Council action is required to increase the balance in the reserve or to authorize the use of any portion of its balance. This reserve is intended to be used in the event of a catastrophic event or significant downturn in the economy that cannot be mitigated with other funding sources.

 GENERAL FUND UNASSIGNED FUND BALANCE: an amount equal to ten percent (10%) of a single year’s budgeted General Fund budget. “Budget” shall be defined as including all operating expenditures, capital outlay, operating subsidies and transfers-out.

The General Fund Unassigned Balance is determined annually as part of the preparation of the City’s Comprehensive Annual Financial Report (CAFR). Amounts in excess of the target level will be used to increase or replenish other reserves (with priority given to the Economic Contingency and Facilities Maintenance Reserves), to set aside resources for specific one-time uses, or as a funding source for one-time expenditures included in the annual budget or for needs that arise subsequent to budget adoption.

 GENERAL FUND FACILITIES MAINTENANCE RESERVE: an amount equal to three times the annual amount budgeted to provide major maintenance for the City’s building assets. “Building assets” shall be defined as all permanent or nonpermanent structures constructed or installed to provide a workplace for City employees or house City assets and/or operations. The annual amount to be budgeted for major maintenance projects is

1.5% of the City’s General Fund Operating expenditures. “Operating expenditures” shall be defined as all expenditures, except those of a capital nature, plus operating subsidies provided to the Library Fund, Parks Fund, and Personnel Compensation Fund (OPEB benefits payments), or to any other fund as determined by the City Council.Budget.

Page 53 of 400 ends

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: March 4, 2025
November 18, 2025
ADOPTED: June 26, 1985
POLICY #201
TITLE: Maintenance of Reserve Funds
Formal City Council action is required to increase the balance in the reserve or to authorize the use of any portion of its balance. This reserve is to be used for extraordinary major maintenance costs that cannot be met within the annual budgeted amount and for which no other funding sources is available.

 GAS TAXES FUND CONTINGENCY RESERVE: an amount equal to a minimum of five percent (5%) of the estimated annual revenue of the Gas Taxes Fund.

 SEWER SERVICE FUND OPERATIONS / CASH FLOW RESERVE: an amount equal to at least fifty percent (50%) of a single year’s budgeted Sewer Service Fund operating expenditures.

 SEWER SERVICE FUND METRO CASH FLOW RESERVE: an amount equal to the City’s estimated portion of the projected cash needs for capital costs of the San Diego Metropolitan Sewerage System’s wastewater treatment program. This amount is assumed to be $850,000 for fiscal year 2025-26 through fiscal year 2029-30.

 SEWER SERVICE FUND CAPITAL REPLACEMENT RESERVE: an amount equal to between ten percent (10%) and fifteen percent (15%) of a single year’s budgeted Sewer Service Fund user fees.

 SEWER SERVICE FUND CAPITAL EXPANSION RESERVE: an amount equal to between ten percent (10%) and fifteen percent (15%) of a single year’s budgeted Sewer Service Fund user fees.

 SEWER SERVICE FUND EMERGENCY / NATURAL DISASTER RESERVE: an amount equal to a minimum of fifteen percent (15%) of a single year’s budgeted Sewer Service Fund operating expenditures, including both operational and capital investment program costs

 GENERAL LIABILITY INSURANCE RESERVE: an amount of assets in the Liability Insurance Fund (an internal service fund) sufficient to meet the eighty percent (80%) confidence level of adequacy for the net claim’s liability, as updated annually by the City’s actuary. The reserve level requirements will be reviewed as part of the annual budget process whereupon internal service fund charges will be set such that anticipated expenditures for the budget year can be met and the reserve level maintained.

 WORKERS’ COMPENSATION RESERVE: an amount of assets in the Liability Insurance Fund (an internal service fund) sufficient to meet the eighty percent (80%) confidence level of adequacy for the net claim’s liability, as updated annually by the City’s actuary. The reserve level requirements will be reviewed as part of the annual budget process

Page 54 of 400 ends

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: March 4, 2025
November 18, 2025
ADOPTED: June 26, 1985
POLICY #201
TITLE: Maintenance of Reserve Funds
whereupon internal service fund charges will be set such that anticipated expenditures for the budget year can be met and the reserve level maintained

 IRREVOCABLE SUPPLEMENTAL PENSION TRUST RESERVE: an amount equal to two years of unfunded liability payments as det ermined by the most current CalPERS valuation reports for both the Safety and Miscellaneous plans. The assets of this reserve are held in an irrevocable Section 115 pension trust that may be used only for pension related costs and upon direction of the City Council. Investment earnings on the assets in the trust will be the primary vehicle for reaching the target level of reserves, although periodic contributions may be made from other sources upon direction of the City Council.

Once the target level is reached, the earnings on the assets in the trust may be used to fund a portion of the City’s pension related payments to CalPERS. This target will be reevaluated should the City issue pension obligation bonds.

 IRREVOCABLE OTHER POST-EMPLOYMENT BENEFITS TRUST RESERVE: an amount equal to eighty percent (80%) of the total net other post-employment benefits (OPEB) liability of the City’s OPEB plans. Under the plan, the City provides payments to City retirees to be used towards medical insurance premiums. The City’s net OPEB liability is updated annually and reported in the City’s CAFR. The assets of this reserve are held in an irrevocably Section 115 OPEB trust that may be used only for the City’s OPEB plan and upon direction of the City Council. Investment earnings on the assets in the trust will be the primary vehicle for reaching the target level of reserves, although periodic contributions may be made from other sources upon direction of the City Council.

Once the assets in the trust reach the target level, the earnings on the assets may be used to offset a portion of the OPEB plan benefits that are routinely annually budgeted and paid for using other resources of the general fund.

 VEHICLE REPLACEMENT RESERVE: an amount equal to thirty percent (30%) of the recorded (book) value of the motor vehicles and associated assets accounted for in the Vehicle Replacement Fund (an internal service fund). Internal service fund charges to benefitting departments provide the mechanism for building the reserves in the fund. The charges take into account the initial acquisition costs of the assets, their expected years of service, and the estimated cost to replace them at the end of their useful life. Once the target level is reached, the adequacy of the reserve with respect to the status of the fleet should be reevaluated along with the formula used for developing the ISF charges.

The status of each reserve shall be reviewed each year by the City Manager as part of the budgeting process. The City Manager shall take into account the most recently completed CAFR and any other pertinent data and make recommendations to the City Council regarding any adjustments to reserve levels; however, nothing in this policy shall prevent determining or reporting on the level of any reserves at other times during the year.

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AMENDED: March 4, 2025
November 18, 2025
ADOPTED: June 26, 1985
POLICY #201
TITLE: Maintenance of Reserve Funds
Replenishment of Reserves

If a reserve balance falls below the targeted level, the City shall strive to restore it to the targeted level through budgetary or other means according to the following guidelines:

 If a reserve is drawn down to 75-99% of its targeted balance, it shall be restored to 100% over a 1 to 3 year period.
 If a reserve is drawn down to 50-74% of its targeted balance, it shall be restored to 100% over a 3 to 5 year period.
 If a reserve is drawn down below 50% of its targeted balance, it shall be restored to 100% over a 5 to 7 year period.

These guidelines may be suspended, in whole or part, if financial or economic circumstances prevent meeting any or all of the timelines.

Related Policy References

None
Prior Policy Amendments

September 17, 2019
November 21, 2017
June 7, 2016
October 7, 2014
December 10, 2013
March 12, 2002

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 19, 2024

ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
I. INTRODUCTION

The City of National City’s investment program will conform to federal, state, and other legal requirements, including California Government Code Sections 16429.1-16429.4, 53600- 53609, and 53630-53686. The following investment policy addresses the methods, procedures, and practices which must be exercised to ensure effective and judicious fiscal and investment management of the City’s funds. It is the policy of the City to invest public funds in a manner that will provide a market rate of return, given its requirements for preserving principal and meeting the daily cash flow demands of the City. All investments will comply with this Investment Policy and governing laws.

This Investment Policy replaces any previous Investment Policy or Investment Procedures of the City.

II. SCOPE

This Investment Policy applies to all the City’s financial assets and investment activities with the following exception(s):

Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures.

CalPERS, OPEB trusts, and the investment of employees’ deferred compensation funds invested pursuant to Government Code Section 53609.

Pooling of Funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration.

Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

III. GENERAL OBJECTIVES

The overriding objectives of the investment program are to preserve principal, provide sufficient liquidity, and manage investment risks.

1. Safety: Safety of principal is the foremost objective of the investment program.

Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.

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TITLE: Investments

2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements

3. Return: The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

IV. PRUDENCE, INDEMNIFICATION, AND ETHICS

A. Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in California Government Code Section 53600.3:

“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject t o the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the p rincipal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”

B. Indemnification: The Director of Financ e or City Manager designee hereinafter designated as Financial Services Officer and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the Investment Policy and exercising due diligence, will be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments.

C. Ethics: Officers and employees involved in the investment process will refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

V. DELEGATION OF AUTHORITY

A. Authority to manage the City’s investment program is derived from California Government Code Section 53600 et seq. The City Council is responsible for the City’s cash management, including the administration of this Investment Policy. Management

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ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
responsibility for the cash management of City funds is hereby delegated to the Director of Finance and/or Financial Services Officer.

The Director of Finance or designee will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employee.

B. The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.

VI. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS

A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence described in the investment procedures manual. These may include “primary” dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).

A. The City’s Director of Finance or designee will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include:

1. Institutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certification.

2. Primary government dealers as designated by the Federal Reserve Bank;

3. Nationally or state-chartered banks;

4. The Federal Reserve Bank;

5. Savings association or federal association (as defined in Section 5102 of the Financial Code); and

6. Direct issuers of securities eligible for purchase.

B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City.

C All financial institutions which desire to become qualified bidders for investment

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ADOPTED: October 23, 1990
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TITLE: Investments
transactions (and which are not dealing only with the investment adviser) must supply the Director of Finance or designee with a statement certifying that the institution has reviewed California Government Code Section 53600 et seq. and the City’s Investment Policy.

D. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser.

E. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

VII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVE TRANSACTIONS

A. Delivery-versus-payment: Settlement of all investment transactions will be completed using standard delivery-vs.-payment procedures.

B. Third-party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third party bank custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City.

C. Competitive transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions or through the use of a nationally recognized trading platform.

VIII. AUTHORIZED AND SUITABLE INVESTMENTS

All investments will be made in accordance with California Government Code Section 53600 et seq. and as described within this Investment Policy. Permitted investments under this policy will include:

1. Municipal Bonds. These inc lude bonds of the City, the State of California, any other municipality, within the state of California. The bonds will be registered in the name of the City or held under a custodial agreement at a bank.

a. Are rated in the category of “A” or better by at least two nationally recognized statistical rating organizations; and

b. No more than 5% per issuer.

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ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
c. No more than 30% of the total portfolio may be invested in municipal bonds.

2. US Treasury and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in US Treasuries.

3. Federal Agency or Uni ted States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises.

4. Banker’s acceptances, provided that:

a. They are issued by institutions with short term debt obligations rated “A1” or higher, or the equivalent, by at least two nationally recognized statistical-rating organizations (NRSRO); and have long-term debt obligations which are rated in rating category “A” or higher by at least two nationally recognized statistical rating organizations;

b. The maturity does not exceed 180 days; and

c. No more than 40% of the total portfolio may be invested in banker’s acceptances and no more than 5% per issuer.

5. Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:

a. The amount per institution is limited to the maximum covered under federal insurance; and

b. The maturity of such deposits does not exceed 5 years.

6. Certificate of Deposit Placement Service (CDARS)

a. No more than 30% of the total portfolio may be invested i n a combination of certificates of deposit including CDARS

b. The maturity of CDARS deposits does not exceed 5 years.

7. Negotiable certificates of deposit (NCDs), provided that:

a. They are issued by ins titutions which have long- term obligations which are rated

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ADOPTED: October 23, 1990
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TITLE: Investments
“A” or higher by at least two nationally recognized statistical rating organizations; and/or have short term debt obligations rated “A1” or higher, or the equivalent, by at least two nationally recognized statistical rating organizations;

b. The maturity does not exceed 5 years; and

c. No more than 30% of the total portfolio may be invested in NCDs and no more than 5% per issuer.

8. Commercial paper, provided that:

a. The maturity does not exceed 270 days from the date of purchase;

b. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million;

c. They are issued by institutions whose short term obligations are rated “A -1” or higher, or the equivalent, by at least two nationally recognized statistical rating organizations; and whose long-term obligations are rated “A” or higher by at least two nationally recognized statistical rating organizations; and

d. No more than 25% of the total portfolio is invested in commercial paper and no more than 5% per issuer. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.

9. State of California Local Agency Investment Fund (LAIF), provided that:

a. The City may invest up to the maximum permitted amount in LAIF; and

b. LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude it from the City’s list of allowable investments, provided that th e fund’s reports allow the Director of Finance or Financial Services Officer or designee to adequately judge the risk inherent in LAIF’s portfolio.

10. Local government investment pools.

a. San Diego County Investment Pool

11. Corporate medium term notes (MTNs), provided that:

a. Such notes have a maximum maturity of 5 years;

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TITLE: Investments

b. Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States;

c. Are rated “A” category or better by at least one nationally recognized statistical rating organization; and

d. Holdings of medium-term notes may not exceed 30% of the total portfolio and no more than 5% per issuer.

12. Mortgage pass-through securities, asset-backed securities, and collateralized mortgage obligations from issuers not defined in sections 2 and 3 of the Authorized and Suitable Investments section of this policy, provided that such securities:

a. Have a maximum stated final maturity of 5 years.

b. Be rated in a rating category of “AA” or its equivalent or better by a nationally recognized statistical rating organization.

c. Purchase of securities authorized by this subdivision may not exceed 20% of the total portfolio.

13. Money market mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940:

a. Provided that such funds meet either of the following criteria:

1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or,

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securi ties and obligations authorized by California Government Code Section 53601 (a through j) and with assets under management in excess of $500 million.

b. Purchase of securities authorized by this subdivision may not exceed 20% of the total portfolio.

14. Supranationals, provided that:

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TITLE: Investments
a. Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and D evelopment, International Finance Corporation, or Inter -American Development Bank.

b. The securities are rated in a category of “AA” or higher by a NRSRO.

c. No more than 30% of the total portfolio may be invested in these securities.

d. No more than 10% of the total portfolio may be invested in any single issuer.

e. The maximum maturity does not exceed five (5) years.

IX. PORTFOLIO RISK MANAGEMENT

A. The following are prohibited investment vehicles and practices:

1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.

2. In accordance with California Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.

3. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
[AS2]

4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

5. Purchasing or selling securities on margin is prohibited.

6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.

7. The purchase of foreign currency denominated securities is prohibited.

8. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

B. Mitigating credit risk in the portfolio

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ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments

Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:

1. The diversification requirements included in Section IX are designed to mitigate credit risk in the portfolio;

2. No more than 5% of the total portfolio may be invested in securities of any single issuer, except as noted in Section VIII of this Investment Policy;

3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity, or yield of the portfolio in response to market conditions or the City’s risk preferences; and

4. If securities owned by the City are downgraded by either Moody’s or S&P to a level below the quality required by this Investment Policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

a. If a security is downgraded, the Director of Finance or designee will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

C. Mitigating market risk in the portfolio

Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer -term portfolios have the potential to achieve higher returns. On the other hand, longer -term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short- term cash needs, and by making longer -term investments only with funds that are not needed for current cash flow purposes. The City further recognizes that certain types of securities, inc luding variable rate securities, securities with principal pay -downs prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

1. The City will maintain a minimum of three months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements;

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TITLE: Investments

2. The maximum percent of callable securities (does not include “make whole call” securities as defined in the Glossary) in the portfolio will be 20%;

3. The maximum stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy; and

4. The duration of the portfolio will at all times be approximately equal to the duration (typically plus or minus 20%) of a Market Benchmark Index selected by the City based on the City’s investment object ives, constraints and risk tolerances. The City’s current Benchmark will be documented in the investment procedures manual.

X. INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION)

A. Overall objective: The investment portfolio will be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs.

B. Specific objective: The investment performance objective for the portfolio will be to earn a total rate of return over a market cycle which is approximately equal to the return on the Market Benchmark Index as described in the City’s investment procedures manual.

XI. PROCEDURES AND INTERNAL CONTROLS

A. Procedures: The Director of Finance or designee will establish written investment policy procedures in a separate investment procedures manual to assist investment staff with day-to-day operations of the investment program consistent with this policy. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance or designee.

B. Internal Controls: The Director of Finance or designee is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The internal control structure will be designed to provide reasonable assurance that these objectives are met. Internal controls will be in the City’s investment procedures manual.

XII. REPORTING AND REVIEW

A. Monthly reports: The Director of Finance and/or Financial Services Officer must submit a monthly report to the legislative body accounting for transactions made during the

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reporting period.

B. Quarterly reports: Quarterly investment reports will be submitted by the Director of Finance or designee to the City Council, at an agendized meeting within 45 days of the end of the quarter. Consistent with the requirements contained in California Government Code Section 53646, information in the quarterly investment reports shall include, but not be limited to, the following:

1. Type of investment

2. Name of issuer and/or financial institution

3. Date of purchase

4. Date of maturity

5. Current market value for all securities

6. Rate of interest

7. Purchase price of investment

8. Other data as required by the City

C. Annual Policy review: The Investment Policy will be reviewed at least annually within 120 days of the end of the fiscal year and, as necessary, adopted, to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends.

Related Policy References
California Government Code Sections: 16429.1 – 16429.4, and 53600 – 53609 and 53630-53686 Investment Company Act of 1940
Investment Advisers Act of 1940
Securities and Exchange Commission Rule #15C3-1
Appendix I attached: “Authorized Personnel”
Appendix II attached: “Glossary of Investment Terms”

Prior Policy Amendments
October 23, 1990 – Established Policy
May 9, 1995 (Resolution No. 95-62)
Updated Policy and Inclusion in the Policy Manual and
Amend policy adopted October 23, 1990
August 6, 1996 (Resolution No. 96- 130)
August 26, 1997 (Resolution No. 97- 110)
October 6, 1998 (Resolution No. 98- 136)
September 7, 1999 (Resolution No. 99- 130)
October 2, 2001 (Resolution No. 2001-151)
October 1, 2002 (Resolution No. 2002-149)
October 7, 2003 (Resolution No. 2003-139)
June 7, 2005 (Resolution No. 2005-118)
October 4, 2005 (Resolution No. 2005- 215)
August 21, 2007 (Resolution No. 2007-202)
February 19, 2008 (Resolution No. 2008- 37)

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February 19, 2008 (Resolution No. 2008- 38) CDC
January 10, 2012 (Resolution No. 2012- 09)
December 10, 2013 (Resolution No. 2013- 189)
December 16, 2014 (Resolution No. 2014-172)
December 15, 2015 (Resolution No. 2015- 186)
December 6, 2016 (Resolution No. 2016- 189)
October 17, 2017 (Resolution No. 2017- 203)
November 20, 2018 (Resolution No. 2018- 189)
August 18, 2020 (Resolution No. 2020- 151)
June 21, 2022 (Resolution No. 2022- 107)
August 15, 2023 (Resolution No. 2023- 116)
November 19, 2024 (Resolution No. 2024- 135)

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TITLE: Investments
Appendix I

Authorized Personnel

The following positions are authorized to transact investment business and wire funds for investment purposes on behalf of the City of National City:

City Manager
Assistant City Manager
Financial Services Officer
Director of Finance or designee

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Appendix II

GLOSSARY OF INVESTMENT TERMS

Agencies. Shorthand market terminology for any obligation issued by a government - sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full faith and credit of the US government to certain bank deposits and debt obligations.

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds.

Asked. The price at which a seller offers to sell a security.

Asset-Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

Average life. In mortgage -related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

Banker’s acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

Bid. The price at which a buyer offers to buy a security.

Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower

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rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when rates are lower than when the investment was initially made.

Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.

Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

Commercial paper. The short-term unsecured debt of corporations.

Cost yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

Coupon. The rate of return at which interest is paid on a bond.

Credit risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

Current yield. The annual income from an investment divided by the current market value.

Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

Debenture. A bond secured only by the general credit of the issuer.

Delivery vs. payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

Federal funds rate. The rate of interest charged by banks for short -term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.

Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 19, 2024

ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
Fiduciary. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the best interests of their clients.

Haircut: The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction (i.e. a repo).

Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

Liquidity: The speed and ease with which an asset can be converted to cash.

Local Agency Investment Fund (LAIF). A voluntary investment fund managed by the California State Treasurer’s Office open to government entities and certain non- profit organizations in California.

Local Government Investment Pool. Investment pools including the Local Agency Investment Fund (LAIF), county pools, joint powers authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or “made whole.”
Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.

Market risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

Market value. The price at which a security can be traded.

Marking to market. The process of posting current market values for securities in a portfolio.

Maturity. The final date upon which the principal of a security becomes due and payable.

The investment’s term or remaining maturity is measured from the settlement date to final maturity.

Medium term notes. Unsecured, investment -grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly
flexible debt instruments that can be structured to
respond to market opportunities or to investor preferences.

Modified duration. The percent change in price for a 100 basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

Money market. The market in which short term debt instruments (T -bills, discount notes, commercial paper and banker’s acceptances) are issued and traded.

Mortgage pass-through securities. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

Municipal Securities. Securities issued by state and local agencies to finance capital and

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 19, 2024

ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
operating expenses.

Mutual fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

Nationally Recognized Statistical Rating Organization (NRSRO). A credit rating agency the United States Securities and Exchange Commission uses for regulatory purposes.

Credit rating agencies provide assessments of an investment’s risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody’s.

Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

Prepayment speed. A measure of how quickly principal is repaid to investors in mortgage securities.

Prepayment window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

Primary dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out US monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the US Government securities market.

Prudent person (man) rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” Realized yield. The change in value of the portfolio due to interest received and interest earned and
realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

Regional dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities, and that is not a primary dealer.

Repurchase agreement (RP, Repo). Short term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.

Short Term. Less than one (1) years’ time.

Structured note. Structured note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 19, 2024

ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
rates are falling, and which fall when other interest rates are rising, and “dual index floaters,” which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step- up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

Supranational. A Supranational is a multi- national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

Total rate of return. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

US Treasury obligations. Securities issued by the US Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

Treasury bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

Treasury notes. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually.

Treasury bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

Value. Principal plus accrued interest.

Volatility. The rate at which security prices change with changes in general economic conditions
or the general level of interest rates.

Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: October 17,
2023November 18, 2025
ADOPTED: October 21, 2003
POLICY #204
TITLE: Donation Acceptance Policy
Purpose
From time to time, individuals, community groups and businesses may wish to make donations to the City in either cash or in- kind contributions that enhance projects, facilities, and programs, and the need for such projects, facilities and programs often exceeds the City’s ability to fund such itemthem. Accordingly, it is an acceptable and appropriate practice to accept donations, in order to enhance city programs and/or facilities to provide a higher level of service to the public.

The purpose of this policy is to establish an orderly and efficient process for the acceptance of donations made to the City. It is also important to process donations in such a way so as to distinguish between donations made to the City, versus those made t o individuals (e.g., gifts or campaign contributions).

Policy
All donations made to the City shall be accepted and processed according to the following:

1. The donation must have a purpose consistent with City goals and objectives.

2. The City Council may decline any donation without comment or cause.

3. The donation must not be in conflict with any provision of the law.

4. In-kind donations will be acceptable to the City of National City.

5. The donation will not add to the workload of the City Council or staff unless it provides a net benefit to the City.

6. The donation will not require hidden costs such as starting a program the City would be unwilling to fund when the donation was exhausted. To the extent the donation is for specific funding of a program or position, any such donation can be accepted but will not be conditioned on continuing funding for that program or position beyond the donation amount.

7. The donation must place no restriction on the City, unless agreed to by the City Council.

8. The donation shall become the property of the City.

9. All donations will receive recognition appropriate to the level and nature of the donation as determined by the City. For those of a capital nature, that may be in the form of signage, marking or naming, as determined by the City Council. Regardless

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: October 17,
2023November 18, 2025
ADOPTED: October 21, 2003
POLICY #204
TITLE: Donation Acceptance Policy
of the recognition strategy selected, the intent shall be to appropriately honor the donor for their contribution to the community. The appearance of traditional commercial advertising or product endorsements that promote the donor shall be prohibited.

10. All monetary donations shall be submitted to the Finance Department staff. A receipt shall be made available from the Finance Department, upon request. Other departments may accept non-monetary donations subject to the other provisions of this policy and shall notify the Finance Department of all such donations received.

11. Cash donations exceeding $5,000, and in-kind donations exceeding $5,000 in value, must be submitted through a written agreement consistent with these guidelines and approved by the City Council. In-kind capital donations will be subject to normal City review, permitting, inspection and insurance requirements.

12. At the time of acceptance, donations exceeding two-hundred and fifty dollars ($ 250) will be acknowledged in writing by the recipient department in a format approved by the City Attorney. The original acknowledgement will be sent to the donor and a copy forwarded to the Finance Department.

Related Policy References
Council Policy #115: Donating City Property & Police Unclaimed Property Council Policy #117: Distribution & Reporting of Tickets and Passes Two templates for "Donation Acceptance" agreements are attached to this policy

Prior Policy Amendments
October 21, 2003 (Resolution No. 2003- 151)
April 20, 2004 (Resolution No. 2004- 58)
June 7, 2005 (Resolution No. 2005- 118)
August 16, 2005 (Resolution No. 2005- 183)
October 17, 2023 (Resolution No. 2023- 149)

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: October 17,
2023November 18, 2025
ADOPTED: October 21, 2003
POLICY #204
TITLE: Donation Acceptance Policy

UNCONDITIONAL DONATION OF PERSONAL PROPERTY (ART WORK)

TO THE CITY OF NATIONAL CITY

_____________________________________________(hereinafter referred to as "the Donor") hereby (Name of Donor)

makes an unconditional donation, in perpetuity, of _ ______________________________________ (Description of Donation)

___________________________________________________________________________________

(hereinafter referred to as "the Donation") to the City of National City. The Donor understands and acknowledges that pursuant to Sections 37354 and 37355 of the California Government Code, the City is authorized to accept said donation for any public purpose that the City desires.

Due to the nature of the donation work of art and the site on which it is installed, the DONOR and his/her agents, heirs, successors and assigns hereby waive any and all rights they may have under thee California Art Preservation Act, as set forth in Civil Code Section 987. The DONOR agrees that upon completion, the physical work of art which is created pursuant to this Agreement shall be transferred to and shall vest in the City of National City, and the DONO R hereby expressly waives and releases all rights of ownership to the work of art, including those under Civil Service Code Section 988. The DONOR, his/her agents, heirs, successors and assigns also agree not to attempt to defeat this waiver by cooperating with any organization which seeks to bring an action under Civil Code Section 989.

The Donor hereby releases the City of National City and its officers, employees and volunteers, against and from any and all liability, loss, damages to property, claims, demands, suits, actions proceedings, costs or attorney's fees, of any kind or nature, resulting from or arising out of the City's use of the Donation.

The individual executing this document on behalf of the Donor represents that he/she has the legal power, right and authority to bind the Donor; that all requisite action (corporate, trust partnership or otherwise) has been taken by the Donor in connection with authorizing the execution of this document; that this document shall be legally enforceable as to the Donor; an that the execution of this document does not conflict with or result in the breach of any contract bond, note or other agreement or instrument to which the Donor is a party.

Dated: ____________ DONOR

By: ________________________________
(Authorized Representative)
____________________________________________________________________________ For Office Use Only
Certificate of Insurance Approved ________________________________ Date:_____________

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: October 17,
2023November 18, 2025
ADOPTED: October 21, 2003
POLICY #204
TITLE: Donation Acceptance Policy

UNCONDITIONAL DONATION OF PERSONAL PROPERTY

TO THE CITY OF NATIONAL CITY

___________________________________________ (hereinafter referred to as ''the Donor") hereby (Name of Donor)

makes an unconditional donation, in perpetuity, of _ _____________________________________ (Description of Donation)

__________________________________________________________________________________

(hereinafter referred to as "the Donation") to the City of Nationa l City. The Donor understands and acknowledges that pursuant to Sections 37354 and 37355 of the California Government Code, the City is authorized to accept said donation for any public purpose that the City desires.

As a condition of the granting of permission by the City of National City to the donor to conduct its activities on public property, the donor hereby agree(s) to defend, indemnify and hold harmless the City of National City its officers, employees and agents, from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorney’s fees and the costs of litigation, arising out of or related to the use of public property by the donor or its agents, employees or contractors. The Donor agrees to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured. A certificate of insurance must be attached to this form.

The individual executing this document on behalf of the Donor represents that he/she has the legal power, right and authority to bind the Donor; that all requisite action (corporate, trust, partnership or otherwise) has been taken by the Donor in connection with authorizing the execution of this document; that this document shall be legally enforceable as to the Donor; and that the execution of this document does not conflict with or result in the breach of any contract, bond, note or other agreement or instrument to which the Donor is a party.

Dated
:___________________________
DONOR

By:________________________________________
(Authorized Representative)
________________________________________________________________________________ For Office Use Only

Certificate of Insurance Approved ___________________________ Date _______________

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November
18, 2025
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management
I. POLICY

This debt management policy (hereafter '' Policy") sets forth debt management objectives for the City of National City, the National City Joint Powers Financing Authority, the Successor Agency to the National City Redevelopment Agency, and any other entity for which the City Council acts as the legislative body. The term “City" shall refer to each of such entities.

This Policy establishes general parameters for issuing and administering debt.

Recognizing that cost-effective access to the capital markets depends upon prudent management of the Debt Program, the City Council has adopted this Policy by resolution.

This Policy is intended to comply with California Government Code Section 8855(i) which requires that the California Debt and Investment Advisory Commission (“CDIAC”) be notified in advance of an entity’s proposed issuance of debt, that the entity has a debt management policy comprising certain elements and that the issuance is consistent with the entity’s debt management policy.

II. SCOPE

The guidelines established by this Policy will govern the issuance and management of all debt financing for long-term capital or other needs. and notDebt financing will not be used for general operating functions. When used in this Policy, ''debt" refers to all forms of indebtedness. The City recognizes changes in the capital markets and other unforeseen circumstances may require action that deviates from this Policy. City Council approval shall be required for implementation of any exceptions to this Policy for such circumstances.

III. GOALS & OBJECTIVES

The purpose of this Policy is to assist the City in pursuit of the following equally important goals and objectives, while providing full and complete financial disclosure and ensuring compliance with applicable state and federal laws:
• minimize debt service and issuance costs;
• m aintain access to cost effective borrowing;
• achieve the highest practical credit rating;
• ensure full and timely repayment of debt ;
• maintain full and complete financial disclosure and reporting; • ensure compliance with applicable state and federal laws.

IV. RELATIONSHIP OF DEBT TO, AND lNTEGRATION WITH, THE CITY'S CAPITAL

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November
18, 2025
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management

IMPROVEMENT PROGRAM AND OR BUDGET

Capital Improvement Program or Other Needs - The City Manager or his/her designee (hereafter “City Manager”) shall assess and identify the capital or other needs of the City for which debt financing may be an appropriate option. and For capital improvement needs, the City Mm anager will review the current Capital Improvement Program to develop a schedule for when facilities should be improved or acquired. The City Manager shall identify potential funding sources and financing options and match those resources to the capital needs identified in t he Capital Improvement Program. In making such determination, the City Manager shall consider the maximum term; , average maturity; , amortization of debt service; , optional redemption features; , and use of variable or fixed- rate debt, credit enhancements, and other structuring considerations, as further discussed below.

Budget Integration - The decision to incur new indebtedness should be integrated with the policy decisions embedded in the City Council -adopted annual operating and capital budget. The annual debt service payments shall be included in the operating budget.

For capital projects, The the City will integrate its debt issuances with the goals of its Capital Improvement Program by timing issuance of debt to ensure projects are available when needed in furtherance of the City’s public purposes. For all other needs eligible to be debt financed, The the City will seek to issue debt at a time and in a timely manner to that avoid having to make unplanned expenditures for capital improvements or equipment from its General Fundmaximizes the benefits to the City of the debt issuance.

Biennial Review - Recognizing cost-effective access to the capital market depends upon prudent management of the City’s debt program, a review of the Policy should be performed at least biennially. The Policy shall be included as an appendix in the annual budget adopted by the City Council. Any substantive changes to the Policy shall be brought to the City Council for consideration and approval.

V. POLICY GOALS RELATED TO THE CITY'S PLANNING GOALS AND

OBJECTIVES

In following this Policy, the City shall pursue the following goals:

1. attain the best possible credit rating for each debt issue in order to reduce interest costs, within the context of preserving financial flexibility and meeting capital funding requirements;

2. take all practical precautions and proactive measures to avoid financial decisions that will negatively impact the
City’s credit ratings on existing or future debt issues;

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November
18, 2025
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management

3. consider market conditions and City cash flow when timing the issuance of debt;

4. determine the amortization (maturity) schedule which that will fit best within the City’s overall debt structure at the times new debt is issued;

5. match the term of the issue to the useful lives of assets funded by that issue, when practicable and economic al, while considering repair and replacement costs of those assets to be incurred in the future;

6. when issuing debt, assess financial alternatives so as to minimize the impact on the City’s General Fund or special funds, as applicable;

7. when planning for the sizing and timing of debt issuance, consider the ability to expend the proceeds in a timely, efficient, and economical manner.

Vl. DELEGATlON AUTHORITY

Pursuant to the provisions of Section 37209 and 40805.5 of the Government Code of the State of California and to Chapter 2.16.090 of the National City Municipal Code, the Director of Finance, under the direction and control of the City Manager, is responsible for the administration of the financial functions of the City. This Policy grants the City Manager or the Director of Finance the authority to select the financing team, coordinate the administration and issuance of debt, communicate with rating agencies, and fulfill all pre- issuance and post
- i
ssuance requirements imposed by or related to state law, federal tax law, and federal securities law.

Financing Team Definitions and Roles - The Financing Team is the working group of City staff and outside consultants necessary to complete a debt issuance, including, but not limited to, bond counsel, disclosure counsel, underwriter, municipal advisor, trustee, pricing consultant, and/or arbitrage analyst.

T ypically, the Director of Finance, the City Attorney, the City Manager, and appropriate department head(s) from form the City staff portion of the Financing Team. Other staff members or designees may also be appointed to the Financing Team.

Consultant Selection - The City will consider the professional qualification and experience of consultants as they relate to the specific bond issue or other financing under consideration.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November
18, 2025
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management
In certain instances, the City will may conduct a request for proposal/qualification process to select such consultants. Other professionals may be selected by the City Manager or Director of Finance on an as-needed basis.

VII. METHODS OF FlNANClNG - TYPES OF DEBT THAT MAY BE ISSUED AND

PURPOSES OF DEBT

The City will investigate all possible financing alternatives, including, but not limited to, bonds, loans, state bond pools, and grants. The City also has an impact fee program whereby new development pays its fair share for the increased capital costs that result from new construction. Although impact fee payments are restricted to specific projects or types of projects, the use of these payments, when permitted, can be an important source of financing for certain capital projects.

Cash Funding - The City may fun d capital improvements from current revenues or accumulated reserves.

Inter-fund Borrowing -The City may borrow internally from other funds with surplus cash in lieu of issuing bonded debt. Purposes warranting the use of this type of borrowing could include short-term cash flow imbalances, interim financing pending the issuance of bonds, or long -term financing in lieu of bonds for principal amounts of under $5.0 million. The City funds from which the money is borrowed shall be repaid with interest based upon the earning rate the City deems appropriate given the length of term , repayment source, and other considerations. The City Manager and Director of Finance shall also exercise due diligence to ensure it is financially prudent to borrow from the fund loaning the money. Inter -fund loans will be evaluated on a case -by-case basis.

Borrowing between two City funds requires approval by the City Council by resolution.

The purpose of inter-fund borrowing is to finance high-priority needs and to reduce costs of interest, debt issuance, and/or administration.

Bank Loans / Lines of Credi t - Although the City does not typically utilize lines of credit for the financing of capital projects, financial institution credit is an option for municipal issuers and may be evaluated as a financing option.

Other Loans - The City will evaluate other loan programs, including, but not limited to, State or federal loans.

Bond Financing - The City may issue any bonds which are allowed under federal a nd state law, including, but not limited to, general obligation bonds, certificates of participation, revenue bonds, land- secured (assessment and special tax) bonds, refunding bonds, and other obligations (see below for details).

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November
18, 2025
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management

General Obligation Bonds - General obligation (''GO") bonds may only be issued with two -thirds approval of the City's registered voters. The California State Constitution (Article XVI, Section 18) limits the use of the proceeds from GO bonds to "the acquisition or improvement of real property.” pParks, libraries, and public safety facilities are examples of the types of facilities which may be financed with GO bonds.

Lease Financings - Lease financings may take a variety of forms, including certificates of participation, lease revenue bonds, and direct leases (typically for equipment).

When the City finances acquisition or construction of capital improvements or equipment with a lease financing, the City agrees to lease either the financed asset or a different asset and, most commonly the City's lease payments are securitized in the form of certificates of participation or lease revenue bonds. This type of financing requires approval of the City Council.

Revenue Bonds - Revenue bonds are generally issued by the City for enterprise funds which are financially self-sustaining without the use of taxes and therefore rely on the revenues collected by the enterprise fund to repay the debt. This type of financing requires approval of City Council.

Assessment Bonds - The Improvement Bond Act of 1915 (Streets and Highways Code Section 8500 et seq.) and other state laws, subject to A11i.cle XIIlD of the California Constitution, allow the City to issue bonds to finance improvements which provide "specific benefit" to the assessed real property. Installments are collected on the secured property tax roll of the County. This type of financing is secured by the lien upon and assessments paid by the real property owners and does not obligate the City's General Fund or other funds.

Special Tax Bonds - Under the Mello-Roos Community Facilities Act of 1982, the City may issue bonds on behalf of a community facilities district ("CFOCFD") to finance capital facilities most commonly in connection with new development. These bonds must be approved by a two-thirds vote of the qualified electors in the CFD, which the Mello-Roos Act defines to mean registered voters if there are 12 or more registered voters in the CFD and, if there are fewer than 12 registered voters, the landowners in the CFD. Bonds issued by the City under the Mello- Roos Act are secured by a special tax on the real property within the CFOCFD. The financed facilities do not need to be physically located within the CFD. As this type of financing is secured by the special tax lien upon the real property, it does not obligate the City's General Fund or other funds.

Refunding Obligations - Pursuant to the Government Code and various other financing statutes applicable in specific situations, the City Council is authorized to

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November
18, 2025
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management
provide for the issuance of bonds for the purpose of refunding any long-term obligation of the City. Absent any significant non-economic factors, a refunding should produce net debt service savings (net of reserve fund earnings and other offsets and accounting for transaction costs) of at least 3% of the par value of the refunded bonds on a net present value basis, using the refunding issue’s true interest cost ("TIC'') as the discount rate, unless the City determines a lower savings percentage is acceptable for issues or maturities with short maturity dates. Additionally, the City may determine there are other, compelling “non-economic" reasons (i.e., removal of onerous covenants, terms, or conditions) to issue refunding obligations.

Other Obligations - There may be special circumstances when other forms of debt are appropriate and may be evaluated on a case-by-case basis. Such other forms include, but are not limited to: bond anticipation notes, grant anticipation notes, tax allocation bonds, lease revenue bonds, pension obligation bonds, etc.

VIII. STRUCTURE & TERM

Term of Debt - Debt will be structured for the shortest period possible, consistent with a fair allocation of costs to current and future users of the assets or obligations being financed. The standard term of long-term debt borrowing is typically 15-30 years.

Consistent with its philosophy of keeping its capital facilities and infrastructure systems in good condition and maximizing the useful lives of its capital assets, the City will make every effort to allocate sufficient resources to finance ongoing maintenance needs and to provide reserves for periodic replacement and renewal of capital assets. Generally, no debt will be issued for a period exceeding the useful life or average useful lives of projects to be financed.

Debt Repayment Structure- In structuring a bond issue, the City will manage the amo1tization amortization of the debt and, to the extent possible, match its cash flow to the anticipated debt service payments. In addition, the City will seek to structure debt with aggregate level debt service payments over the life of the debt. Structures with uneven debt service will be considered when one or more of the following exists:

• natural disasters or extraordinary unanticipated external factors make payments on the debt in the early years prohibitive;
• such structuring is beneficial to the City' s aggregate overall debt payment schedule;
• such structuring will allow debt service to more closely match project revenues during the early years of the project's operation.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November
18, 2025
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management
Bond Maturity Options - For each issuance, the City will select serial bonds or term bonds, or both. On the occasions where circumstances warrant, capital appreciation bonds (CABs) may be used. The decision to use term , serial, or CABs is typically driven by market conditions.

Interest Rate Structure - The City currently issues securities on a fixed interest rate basis only. Fixed rate securities ensure budget certainly certainty through the life of the issue and avoid the volatility of variable rates.

Credit Enhancement - Credit enhancement may be used to improve or establish a credit rating on a City debt obligation. Types of credit enhancement include letters of credit , bond insurance, and surety policies. A credit enhancement may be used if it reduces the overall cost of the proposed financing or if the use of such credit enhancement furthers the City's overall financial objectives.

Debt Service Reserve Fund - Debt service reserve funds are typically held by a trustee to make principal and interest payments to bondholders in the event the pledged revenue s are insufficient to do so. The City will fund debt service reserve funds when it is in the City’s overall best financial interest. The City may decide not to utilize a reserve fund if the City, in consultation with the underwriter and municipal advisor, determines there would be no adverse impact to the City’s credit rating or interest rates.

Per internal Revenue Service rules, the size of the reserve fund on tax-exempt bond issuance shall be the lesser of:
• 10% of the initial principal amount of the debt;
• 125% of average annual debt service; or
• 100% of maximum annual debt service.

In lieu of holding a cash funded reserve, the City may substitute a surety bond or other credit instrument in its place. The decision to cash fund a reserve fund rather than to use a credit facility is dependent upon the cost of the credit instrument and the investment opportunities.

Call Options / Redemption Provisions - A call option or optional redemption provision gives the City the right to prepay or retire debt prior to its stated maturity date. This option may permit the City to achieve interest savings in the future through the refunding of the bonds. Often the City will pay a higher interest rate as compensation to the buyer for the risk of having the bond called in the future. In addition, if a bond is called, the bolder holder may be entitled to a premium payment (call premium). Because the cost of call options can vary depending on market conditions, an evaluation of factors will be conducted in connection with each issuance. The City, in consultation with the underwriter

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and municipal advisor, shall evaluate the use of a call option on a case-by-case basis.

Debt Limits - California Government Code Section 43605 states the City shall not incur bonded indebtedness payable from the proceeds of property tax which exceeds 15 perc ent of the assessed value of all real and personal property of the city.

The cumulative annual debt service of all bond issues supported by the General Fund is restricted to no more than 15 percent of the annual General Fund revenue.

Bond issues supported by enterprise funds or other self -supporting funds should maintain a minimum ratio of net operating income to annual debt service ("coverage ratio'') the City concludes is financially prudent . Typically, a higher coverage ratio produces a better credit rating and lower interest rates, yet, if too high, may restrict efficient enterprise operations or unduly induce user rate increases . Therefore the City should balance the benefits of higher ratings with the operational impact of high coverage ratios.

IX. METHOD OF ISSUANCE AND SALE; DISCLOSURE

Debt issues are sold to a single underwriter or to an underwriting syndicate, either through a competitive sale or a negotiated sale. A negotiated sale may involve the sale of securities to investors through an underwriter or the private placement of the securities with a financial institution or other sophisticated investor. The selected method of sale will be that which is most beneficial to the City in terms of lowest net interest rate, most favorable terms in financial structure, and market conditions . The City will review conditions in conjunction with information and advice presented by the City’ s municipal advisor.

Competitive Sales of Bonds - In a competitive sale, the terms of the debt will be defined by the City and the price of the debt will be established through an impartial bidding process amongst qualified underwriters and/or underwriting syndicates. The issue is awarded to the underwriter judged to have submitted the best bid which offers the lowest true interest cost, taking into account underwriting spread, interest rates, and any discounts or premiums.

Negotiated Sale of Bonds - A method for sale of bonds, notes, or other financing vehicles in which the City selects in advance, based upon proposals received or by other means, one or more underwriters to work with it in structuring, marketing, and offering an issue to investors. The negotiated sale method is often used when the issue is: a first -time sale by an issuer (a new credit); a complex security structure, such as a variable ·arable rate transaction; an unusually large issue; or in a highly volatile or congested market where flexibility as to bond sale timing is important.

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18, 2025
ADOPTED: August 15, 2017
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TITLE: Debt Management

Private Placement - A private placement is a variation of a negotiated sale in which the City, usually with the help of a municipal advisor and placement agent, will attempt to place the entire new issue directly with an investor. The investor will negotiate the specific terms and conditions of the financing before agreeing to purchase the issue. Private placements are generally undertaken because the transaction is complex or unique, requiring direct negotiations with the investor, or because the issue is small or of a shorter duration and a direct offering provides economies of scale, lower interest costs, and reduced continuing disclosure.

Derivative Products - Because of their complexity, unless otherwise amended, derivative products such as interest rate swaps, interest floaters and other hybrid securities are prohibited by this Policy.

Initial Disclosure Requirements - The City acknowledges its disclosure responsibilities. Under the guidance of disclosure counsel, the City will distribute or cause an underwriter to distribute its preliminary official statement and final official statement. (Neither is typically required in a private placement, although in some cases a “ private placement memorandum” may be required by the investor.)

The Financing Team shall be responsible for soliciting " material'' information (as defined in Securities and Exchange Commission Rule 10b-5) from City departments and identifying contributors who may have info1mation information necessary to prepare portions of the official statement or who should review positions of the official statement. In doing so, the Financing Team shall confirm the official statement accurately states all 'material'' “material'' information relating to the decision to buy or sell the subject bonds and that all information in the official statement has been critically reviewed by an appropriate person.

In connection with an initial offering of securities, the City and other members of the Financing Team will:

• identify material information which should be disclosed in the official statement;

• identify other persons who may have material information (contributors);

• review and approve the official statement;

• ensure the City’ s compliance, and that of its related entities, with federal and state security laws including notification to the California Debt and Investment Advisory Commission (CDIAC) of the proposed debt issue no later than 30 days prior to the sale of any debt issue, and submission of a final report of the issuance to the CDIAC

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TITLE: Debt Management
by any method approved by the CDIAC.

The Financing Team shall critically evaluate the official statement for accuracy and compliance with federal and state securities laws. The approval of an official statement shall be placed on the City Council agenda, and shall not be considered as a consent calendar item. The staff report will summarize the City Council's responsibilities with respect to the official statement and provide the City Council the opportunity to review a substantially final official statement. The City Council shall undertake such review as deemed necessary by the City Council to fulfill the City Council's securities law responsibilities.1

For any privately placed debt with no official statement, the final staff report describing the issue and such other documents will be provided to the City Council for approval.

X. CREDITWORTHINESS OBJECTIVES

Ratings are a reflection of the general fiscal soundness of the City and the capabilities of its management. Typically, the higher the credit ratings are, the lower the interest cost is on the City's debt issues. To enhance creditworthiness, the City is committed to prudent financial management, systematic capital planning, and long-term financial planning, and, to that end, has an objective of maintaining a credit rating of at least AA- (Standard and Poor’s). However the City also recognizes that external economic, natural, or other events may, from time to time, affect the creditworthiness of its debt.

The most familiar nationally recognized bond rating agencies are Standard and Poor ’s, Moody’s Investors Service, and Fitch Ratings . When issuing a credit rating, rating agencies consider various factors including, but not limited to:

• the issuer ' s fiscal status
• the issuer's general management capabilities;
• economic conditions which may impact the stability and reliability of debt repayment sources;
• the issuer's general reserve levels;
• the issuer's debt history and current debt structure·; • project being financed; and
• covenants and conditions in the governing legal documents ..

Bond Ratings - The Financing Team will assess whether a credit rating should be obtained for an issuance. The City typically seeks a rating from at least one nationally recognized rating agency on new and refunding issues to be sold in the public market. The Financing Team shall be responsible for determining which of the major rating agencies the City shall request

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to provide a rating. When applying for a rating on an issue, the Financing Team shall prepare a presentation for the rating agency when it is determined a presentation is in the best interests of the City.

Rating Agency Communications - The City is responsible for maintaining relationships with the rating agencies that assign ratings to the City's debt obligations. This responsibility includes providing the rating agencies with the City's financial statements, if applicable and any additional information requested.

XI. POST ISSUANCE ADMINISTRATION - INTERNAL CONTROLS

Notification to the CDIAC – The City shall work with its bond counsel to submit a report of final sale to the CDIAC by any method approved by the CDIAC no later than 21 days after the sale of the debt. The report shall include the information required by CDIAC.

Investment of Proceeds - The City shall invest bond proceeds and reserve funds in accordance with each issue's indenture or trust agreement utilizing competitive bidding when possible. All investments will be made in compliance with the City’s investment policy objectives of safety, liquidity, and then yield. The investment of bond proceeds and reserve funds shall comply with federal tax law requirements specified in the indenture or trust agreement and the tax certificate.

When feasible, unexpended bond proceeds shall be held by the trustee. The trustee will be responsible for recording all investments and transactions relating to the proceeds and providing monthly statements regarding the investments and transactions.

Use of Bond Proceeds - The City is responsible for ensuring debt proceeds are spent for the intended purposes identified in the related legal documents and that the proceeds are spent in the time frames identified in the tax ce11ificate certificate prepared by the City's bond counsel. When reasonably possible, proceeds of debt will be held by a trustee, until the City submits written requisitions for such proceeds. The City will submit a requisition only after obtaining the signature of the City Manager or Director of Finance. In those cases where it is not feasible for the proceeds of debt to be held by a trustee, the Director of Finance shall retain records of all expenditures of proceeds for the term of the bonds plus 3 years.

Continuing Disclosure - The Director of Finance or designee will ensure that the City’ s annual financial statements and associated reports are posted on the City ’s web site. The City may also contract with consultant(s) to comply with the Securities and Exchange Commission Rule 15c2-12(b)(5) by filing its annual financial statements, other financial and operating data and notices of enumerated events for the benefit of its bondholders on the Electronic Municipal Market Access (EMMA) website of the Municipal Securities Rulemaking Board (MSRB).

The City shall submit an annual r epo1t report to the CDIAC for any issue of debt for which it

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has submitted a repm1 report of final sale on or after January 21, 2017. The annual report shall comply with the requi rements of Government Code Section 8855 and related regulations.

Arbitrage Rebate Compliance and Reporting - The use and investment of bond proceeds must be monitored to ensure compliance with arbitrage restrictions. Existing regulations require that issuers calculate rebate liabilities related to any bond issues, with rebates paid to the federal government every five years and as otherwise required by applicable provisions of the Internal

Revenue Code and regulations. The City shall contract with a specialist to ensure proceeds and investments are tracked in a manner which facilitates accurate, complete calculations, and if necessary, timely rebate payments.

Compliance with Other Bond Covenants - In addition to continuing disclosure and arbitrage monitoring requirements, the City is also responsible for verifying compliance with all undertakings, covenants, and agreements of each bond issuance on an ongoing basis. This typically includes ensuring:

• annual budgetary appropriations to meet debt service payments; • taxes/fees are levied and collected where applicable; • timely transfer of debt service payments to the trustee; • compliance with insurance requirements;
• compliance with rate covenants; and
• post-issuance procedures established in the tax certificate for any tax-exempt debt.

Retention - A copy of al1 al l relevant documents and records will be maintained by the City for the term of the bonds (including refunding bonds, if any) plus 3 years. Relevant documents and records will include sufficient documentation to support the requirements relating to the tax-exempt status.

Investor Relations - While the City shall post its annual financial reports and other financial repo1t sreports on the City's website, this information is intended for the citizens of the City.

Information the City intends to reach the investing public, including bondholders, rating analysts, investment advisors, or any other members of the investment community, shall be filed on the EMMA system.

Additional requirements for financial statements - It is the City’s policy to hire an independent auditing firm with the technical skills and resources to properly perfom1 perform an annual audit of the City's financial statements. More specifically, the firm shall be a recognized expert in the accounting rules applicable to the City and shall have the resources necessary to review

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ADOPTED: August 15, 2017
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TITLE: Debt Management
the City's financial statements on a timely basis.

XII. TRAINING

The City shall ensure that the members of the City staff involved in the initial or continuing disclosure process and the City Council are properly trained to understand and perfom1 perform their responsibilities.

The City Manager or Director of Finance s hall arrange, as necessary, for disclosure training sessions conducted by the City's disclosure counsel. Such training sessions shall inc lude education on the "Initial Disclosure Requirements and "Continuing Disclosure" sections of this

Policy, the City’s disclosure obligations under applicable federal and state securities laws, and the disclosure responsibilities and potential liabilities of members of the City's staff and members of the City Council. Such training sessions may be conducted using a recorded presentation.

1. The Securities and Exchange Commission (SEC ), the agency with r egulatory authority over the City 's comp liance with the federal securities laws, has issued guidance as to the duties of the City Council with respect to its approval of the preliminary official statement ("POS"). In its "Report of Investigation in the Matter of County of Orange, California as it Relates to the Conduct of the Members of the Board of Supervisors "(Release No. 3676 l1 / January 24, 1996) (the “Release"), the SEC stated that, if a member of the City Council has knowledge of any facts or circumstances of which an investor would want to be aware prior to investing in the bonds, whether relating to their repayment, tax –exempt status, undisclosed conflicts of interest with interested parties, or otherwise, he/she should endeavor to discover whether such factors are adequately disclosed in the official statement. In the Release, the SEC stated the steps a member of the City Council would take include becoming familiar with the POS and questioning staff and consultants about the disclosure of such facts.

APPENDIX

GLOSSARY

Ad Valorem Tax: a tax calculated "according to the value" of property. Such a tax is based on the assessed valuation of real property and a valuation of tangible personal property.

Amortization: the gradual reduction in principal of an outstanding debt based upon a specific repayment schedule, which details specific dates and repayment amounts on those dates.

Arbitrage: the gain that may be obtained by borrowing funds at a lower (often tax-exempt) rate and investing the proceeds at higher (often taxable) rates. The ability to earn arbitrage by issuing tax-exempt securities has been severely curtailed by the Internal Revenue Code of I 1986,

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as amended.

Assessed Valuation: the appraised worth of property as set by a taxing authority through assessments for purposes of ad valorem taxation.

Bond: a security that represents an obligation to pay a specified amount of money on a specific date in the future, typically with periodic interest payments.

Bond Anticipation Notes: short -term notes issued usually for capital projects and paid from the proceeds of the issuance of long-term bonds. Provide interim financing in anticipation of bond issuance.

Bond Counsel: a specialized, qualified attorney retained by the issuer to give a legal opinion concerning the validity of securities. The bond counsel’s opinion usually addresses the subject of tax exemption. Bond counsel typically prepares and/or advises the issuer regarding legal structure, authorizing resolutions, trust indentures, and the like.

Bond Insurance: a type of credit enhancement whereby an insurance company indemnifies an investor against default by the issuer. In the event of failure by the issuer to pay principal and interest in full and on time, investors may call upon the insurance company to do so.

Once issued, the municipal bond insurance policy is generally irrevocable. The insurance company receives its premium when the policy is issued and this premium is typically paid out of the bond issue.

Call Option: the right to redeem a bond prior to its stated maturity, either on a given date or continuously. The call option is also referred to as the optional redemption provision. Often a call premium is added to the call option as compensation to the holders of the earliest bonds called.

Capital Appreciation Bond: a municipal security on which the investment return on an initial principal amount is reinvested at a stated compounded rate until maturity, at which time the investor receives a single payment representing both the initial principal amount and the total investment return.

CDIAC: California Debt and Investment Advisory Commission.

Certificates of Participation: a financial instrument representing a proportionate interest in payments such as lease payments by one party (such as a city acting as a lessee) to another party (often a joint powers authority or non-profit).

Competitive Sale: a sale of bonds in which an underwriter or syndicate of underwriters submit sealed bids to purchase the bonds. Bids are awarded on a true interest cost (TIC) basis, provided other bidding requirements are satisfied. Competitive sales are recommended for simple financings with a strong underlying credit rating. This type of sale differs from a negotiated sale.

Continuing Disclosure: the requirement by the Securities and Exchange Commission for most issuers of municipal debt to post current financial information and notices of enumerated events on the MSRB ' s EMMA website for access by the general marketplace .

Credit Rating Agency: a company that rates the relative credit quality of a bond issue and assigns a letter rating. These rating agencies include Moody's Investors Service, Standard & Poor's, and Fitch Ratings.

Debt Limit : the maximum amount of debt legally permitted by applicable charter,

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constitution, or statutes.

Debt Service : the amount necessary to pay principal and interest requirements on outstanding bonds for a given year or series of years.

Default: the failure to pay principal or interest in full or on time and, in some cases, the failure to comply with non-payment obligations after notice and the opportunity to cure.

Derivative: a financial instrument which derives its own value from the value of another instrument, usually an underlying asset such as a stock, bond, or an underlying reference such as an interest rate index.

Disclosure Counsel: a specialized, qualified attorney retained to provide advice on issuer disclosure obligations, to prepare the official statement and to prepare the continuing disclosure undertaking.

Discount: the difference between a bond’s par value and the price for which it is sold when the latter is less than par. Also known as " underwriter discount,” this is the fee paid to the underwriter for its banking and bond marketing services.

Enterprise Activity: revenue generating project or business. The project often provides funds necessary to pay debt service on securities issued to finance the facility. Common examples include water, wastewater, and solid waste enterprises.

Financing Team: the working group of City staff and outside consultants necessary to complete a debt issuance.

General Obligation ("GO”) Bond: a bond secured by an unlimited prope1ty property tax pledge. Requires a two- thirds vote by the electorate. GO bonds usually achieve lower rates of interest than other financing instruments since they are considered to be a lower risk.

I ndenture : a contract between the issuer and the trustee stipulating the characteristics of the financial instrument, the issuer’s obligation to pay debt service, and the remedies available to the trustee in the event of default.

Issuance Costs: the costs incurred by the bond issuer during the planning and sale of securities. These costs include, but are not limited to, municipal advisory, bond counsel, disclosure counsel, printing, advertising costs, credit enhancement, rating agencies fees, and other expenses incurred in the marketing of an issue.

Lease: an obligation wherein a lessee agrees to make payments to a lessor in exchange for the use of certain property. The term may refer to a capital lease or to an operating lease.

Lease Revenue Bonds: bonds secured by an obligation of one party to make annual lease payments to another.

Maturity Date: the date upon which a specified amount of debt principal or bonds matures, or becomes due and payable by the issuer of the debt.

Municipal Advisor: a consultant who provides the issuer with advice on the structure of the bond issue, timing, tennsterms, and related matters for a new bond issue.

Municipal Securities Rulemaking Board (MSRB ): a self -regulating organization established on September 5, 1975 upon the appointment of a 15-member board by the Securities and Exchange Agreement. The MSRB, comprised of representativ es from investment banking firms, dealer bank representatives, and public representatives, is entrusted with the responsibility

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of writing rules of conduct for the municipal securities market. The MSRB hosts the EMMA website, which displays information posted by issuers under their continuing disclosure undertakings.

Negotiated Sale: a sale of securities in which the terms of the sale are determined through negotiation between the issuer and the purchaser, typically an underwriter, without competitive bidding. The negotiated sales process provides control over the financing structure and issuance timing. Negotiated sales are recommended for unusual financing ten11Sterms, period of market volatility, and weaker credit quality. A thorough evaluation, usually with the assistance of the City's municipal advisor, of the proposed bond's credit characteristics in conjunction with market conditions will be performed to ensure reasonable final pricing and underwriting spread.

Official Statement (Prospectus): a document published by the issuer in connection with a primary offering of securities which discloses material information on a new security issue, including the purposes of the issue, how the securities will be repaid, and the financial, economic, and social characteristics of the security for the bonds. Investors may use this information to evaluate the credit quality of the securities.

Par Value: the face value or principal amount of a security.

Pension Obligation Bonds ("POBs''): financing instruments used to pay some or all of the unfunded pension liability of a pension plan. POBs are issued as taxable instruments over a 10-40 year term or by matching the term with the amortization period of the outstanding unfunded actuarial accrued liability.

Premium: the excess of the price at which a bond is sold over its face value.

Present Value: the value of a future amount or stream of revenues or expenditures.

Pricing Consultant: the pricing consultant provides a fairness letter to the City or its agent regarding the pricing of a new issue of municipal securities.

Private Placement : a bond issue structured specifically for one purchaser. Private placements are typically carried out when extraneous circumstances preclude public offerings. A private placement is considered to be a negotiated sale.

Redemption: Depending on an issue's call provisions, an issuer may on certain dates and at certain premiums, redeem or call specific outstanding maturities. When a bond or certificate is redeemed, the issuer is required to pay the maturities' par value, the accrued interest to the call date, plus any premium required by the issue's call provisions.

Refunding: a procedure whereby an issuer refinances an outstanding debt issue by issuing a new debt issue.

Rule 15c2-12: rule adopted by the Securities and Exchange Commission setting forth certain obligations of (i) underwriters to receive, review and disseminate official statements prepared by issuers of most primary offerings of municipal securities, (ii) underwriters to obtain continuing disclosure agreements from issuers and other obligated persons to provide ongoing annual financial information on a continuing basis, and (iii) broker-dealers to have access to such continuing disclosure in order to make recommendations of municipal securities in the secondary market .

R
eserve Fund: a fund established by the indenture of a bond issue into which money is

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deposited for payment of debt service in case of a shortfall in current revenues.

Revenue Bond: a bond which is payable from a specific source of revenue and to which the full faith and credit of an issuer is not pledged. Revenue bonds are payable from identified sources of revenue, and do not permit the bondholders to compel a jurisdiction to pay debt service from any other source. Pledged revenues often are derived from the operation of an enterprise.

Secondly Secondary Market: the market in which bonds are sold after their initial sale in the new issue market.

Serial Bonds: bonds of an issue which mature in consecutive years or other intervals and are not subject to mandatory sinking fund provisions.

Special Tax Bonds: bonds i ssued to fund eligible improvements and paid with special taxes levied in a community facilities district formed under the Mello-Roos Community Facilities Act of 19 82, as amended, or other applicable Jawlaw.

State Revolving Funds: the Stale Revolving Fund (SRF) loan is a low interest loan program for the construction of water infrastructure projects.

Ta x Allocation Bonds: Historically, tax allocation bonds referred to bonds issued under the Community Redevelopment Law to fund eligible capital facilities located within a redevelopment project area. However, as a result of the passage of AB X1 26, the National City Redevelopment Agency has been dissolved and the successor Successor agency's Agency's obligations are limit ed to performing certain enforceable obligations. The California Legislature has enacted a number of laws which establish alt ernative tax increment financing mechanisms, and tax allocation bonds may be issued under these laws in the future.

Tax and Revenue Anticipation Notes (TRANS): short-term notes issued in anticipation of receiving tax receipts and revenues within a fi scal year. TRANs allow the municipality to manage the period of cash shortfalls resulting from a mismatch between timing of revenues and timing of expenditures.

Term Bonds: bonds which come due in a single maturity but where the issuer may agree to make periodic payments into a sinking fund for mandatory redemption of term bonds before maturity and for payment at matu1itymaturity.

True Interest Cost ("TIC”)' : Under this method of computing the interest expense to the issue r of bonds, true interest cost is defined as the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the new issue of bonds. Interest is assumed to be compounded semi-annually. TIC computations produce a figure s lightly different from the net interest cost (" NJCNIC") method because TIC considers the time value of money while NIC does not.

Trustee: a bank retained by the issuer as custodian of bond proceeds and official representative of bondholders. The trustee ensures compliance with the indenture. In many cases, the trustee also acts as paying agent and is responsible for transmitting payments of interest and principal to the bondholders.

Underwriter: a broker-dealer which purchases a new issue of municipal securities from the issuer for resale in a primary offering. The bonds may be purchased either through a negotiated sale with the issuer or through a competitive sale.

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Yield: the net rate of return, as a percentage, received by an investor on an investment. Yield calculations on a fixed income investment, such as a bond issue, take purchase price and coupon into account when calculating yield to maturity.

Related Policy References

Prior Policy Amendments
August 15, 2017 (Resolution No. 2017-161) Establishing Policy

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AMENDED OR REVISED: October 5, 2021
ADOPTED: FEBRUARY 6, 1990
POLICY #502
TITLE: PUBLIC IMPROVEMENTS OR PROFESSIONAL

SERVICE CONTRACT CHANGE ORDERS

PURPOSE

The purpose of this policy is to establish authorization limits and standard methods fo r the approval of changes in contracts.

DEFINITIONS

Construction Contract: A written contract with a properly licensed contractor to construct public improvements within the City of National City that conforms to the Standard Specifications for Public Works Construction (hereinafter, "Green book") and special provisions.

Construction Change Order: A Construction Change Order is a written directive to the contractor to make changes in the work within the general scope of the contract during the construction period. Changes might involve additions to or deletions from the contract, adjustment of bid or line item quantities exceeding the limits set by the latest edition of the Green Bbook, and special provisions as follows:

• Addition of an item of work not specified in the original contract. • Deletion of an item of work specified in the original contract or subsequent approved change order.
• Adjustment of line item quantities beyond the limits allowed· in the latest edition of the Green book and/or special provisions.
• Adjustment of contract time for reasons other than those allowed in the Greenbook or special provisions.

On-Call Consultant Contract: A written agreement between the City and a professional services provider that specifies the services to be provided to the City at defined rates on an as -needed basis as requested by the City through written work ordersnotice to proceed.

On-Call Consultant Work OrderNotice to Proceed: Written request approval from the City to an on-call consultant that authorizes the consultant to perform work on a specific project within the budget, scope and schedule, typically defined in a proposal from the consultant and incorporated into the notice to proceed, work order that are within the scope and budget of the On -Call Consultant Contract.

On-Call Consultant Contract Amendment: A written a greement with a consultant to make specified changes to the On- Call Consultant Contract. An On- Call Consultan t Contract Amendment shall specify changes to services, rates, schedule adjustments and/or overall contract value. The Amendment must be agreed to by the City and the Consultant.

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ADOPTED: FEBRUARY 6, 1990
POLICY #502
TITLE: PUBLIC IMPROVEMENTS OR PROFESSIONAL

SERVICE CONTRACT CHANGE ORDERS

Standard Consultant Contract: A written agreement between the City and a professional services provider that specifies the services to be provided to the City at defined specific rates for a specific project within a specific time.

Standard Consultant Contract Amendment: A written agreement with a consultant to make specified changes to the Standard Consultant Contract. A Standard Consultant Contract Amendment shall specify changes to services, rates, schedule adjustments and/or overall contract value. The amendment must be agreed to by the City and the Consultant.

POLICY

1. Public improvement projects shall be administered in accordance with the latest edition of the Green book, specifications and contract special provisions.

2. Adjustment of bid or line item quantities may be approved by the Director of Public Works/City Engineer for adjustments within the limits set by the latest edition of the Green book and special provisions. Adjustment of line item quantities that exceed the latest edition of the Green book and/or the special provisions (whichever is greater) shall proceed under the Contractor Change Order policy limits as prescribed below.

3. Designated officials of the City are authorized to approve Contract Change Orders to public improvement contracts and amendments to on -call consultant contracts within the scope of the contract, Council approved funding and the limits set forth as follows:

Designated Official Limits

Director of Public Works/City Engineer Aggregate Contract Change Orders,
Amendments to On- Call Consultant Contracts,
and Standard Consultant Contracts up to 15% of
the original contract amount, not to exceed a
maximum of $25,000 per change order or
amendment.

Director of Public Works/City Engineer Adjustments of contract time for justifiable delays within the limits of the latest edition of the Green book and special provisions.

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CITY COUNCIL POLICY

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AMENDED OR REVISED: October 5, 2021
ADOPTED: FEBRUARY 6, 1990
POLICY #502
TITLE: PUBLIC IMPROVEMENTS OR PROFESSIONAL

SERVICE CONTRACT CHANGE ORDERS

City Manager Aggregate Contract Change Orders, Amendments to On-Call Consultant Contracts, and Standard
Consultant Contracts up to 25% of the original
contract amount not to exceed a maximum
of $50,000 per change order or amendment.

City Manager May exceed the limits of authorization set forth herein, if in the City Manager's opinion the
situation requiring the Contract Change Order is
of a nature that presents an emergency in which
there is a concern for public safety, or if delay
would cause un-necessary additional expenses.

In such a case, the Contractor Change Order will
subsequently be presented to the City Council for
ratification at the next regular City Council
meeting.

City Council Contract Change Orders, Amendments to On-Call Consultant Contracts, and Standard Consultant
Contracts that exceed 25% of the
original .contract
amount or $50,000 for a single Change Order or
Amendment.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED OR REVISED: October 5, 2021
ADOPTED: FEBRUARY 6, 1990
POLICY #502
TITLE: PUBLIC IMPROVEMENTS OR PROFESSIONAL

SERVICE CONTRACT CHANGE ORDERS

Related Policy References

Prior Policy Amendments

November 9, 1982 (Resolution No. 13,924) Establishing Policy February 6, 1990 (Resolution No. 16,173)
March 2, 2010 (Resolution No. 2010-30)
October 5, 2021 (Resolution No. 2021-148)

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 18,
2025
ADOPTED: November 15, 1988
POLICY # 703
TITLE: PURCHASE OF PRODUCTS CONTAINING FULLY
HALOGENATED CHLOROFLUOROCARBONS (CFC '.s)

Staff recommends eliminating this policy – the purchase of CFCs is very limited by State Law.

Purpose
To establish policy restricting purchase of·products containing fully halogenated chlorofluorocarbons (CFC's) which are harmful to our environment.

Policy
The use of fully halogenated chlorofluorocarbons has been determined to be harmful to our environment and, therefore, should cease. Unfortunately, there are some products containing these chlorofluorocarbons (CFC's) which are essential to our operations, and must be used. In order to limit the use of these chlorofluorocarbons to necessary, Purchasing Agent is hereby directed to include on all applicable purchasing documents the following clause:

"In accordance with National City Council Policy, vendor shall not provide or deliver any product containing fully halogenated chlorofluorocarbons (CFC's) unless specifically authorized by the National City Purchasing Agent."

Appointing Authority
None.

Prior Policy Amendments:

None.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

To streamline the process of alcohol license application review to ensure timely staff responses and/or protests to the Department of Alcoholic Beverage Control regarding these applications.

The City Municipal Code requires Conditional Use Permits for the sale of alcohol. Such land use regulation is designed to ensure that the health, safety and welfare of the community does not become negatively impacted. In order to minimize any potential adverse effects of alcohol sales for both on and off -site consumption, including public drunkenness, disorderly conduct, illegal sales or domestic violence, the City adopts conditions of approvals and enact policies designed to protect the public from such effects. The following sets forth the City Council’s policy on the applicable alcohol standards for Conditional Use Permit applications for both on and off -sale alcohol sales, as well as the Department of Alcoholic Beverage Control application notification requirements.

POLICY:

The Department of Alcoholic Beverage Control (ABC) sends copies of all alcoholic beverage license applications to the Police Department. The City has thirty days from the date of the ABC mailing to provide comments to the ABC. If no protests are received within that time period, the ABC issues the license.

The Police Department is responsible for ensuring that an appropriate Conditional Use Permit (CUP) exists for the applicant business. If such a CUP exists, the copy of the application is simply filed by the Police Department in the existing file with the notation that there were no objections to the issuance of the license. If it is a new (in the case of an “original” license application) or expanding business or one seeking a license to effect a premises transfer, and no CUP exists, the Police Department is responsible for sending a letter to the ABC protesting the issuance of the license until a CUP is issued by the City.

Whenever such a protest letter is sent to the ABC, that agency notifies the applicant that they must begin the process of obtaining a CUP with the City’s Planning Division and that the issuance of the alcoholic beverage license will be delayed until such time as the protest is withdrawn.

Once a CUP has been issued, the Planning Division notifies the Police Department of that issuance and it is then the responsibility of the Police Department to notify the ABC that the protest is withdrawn.

The CUP application, approval and issuance process is such that it provides all the checks, balances and controls necessary to ensure that businesses seeking alcoholic beverage licenses are in compliance with local standards.

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: July 17, 2018
November 18, 2025
ADOPTED: November 12, 1991
POLICY # 707
TITLE: Alcohol Beverage License Application Review Process and Alcohol Conditional Use Permit Standards
These conditions of approval shall apply to all new Conditional Use Permits (CUPs) for the sale of alcohol for on and/or off-site consumption and modifications of existing CUPs for such sales as specified by the preceding parenthetical references with each condition. These references specify to which type of alcohol CUP being applied for the conditions would apply to – on-sale (restaurant, bar, etc) or off -sale (market, grocery store, etc). Regulation of these conditions and allowances shall be enforced through the Conditional Use Permit process, specifically conditions of approval to read as follows:

1. (off-sale alcohol) The sale of beer or malt beverages in quantities of quarts, 22 ounce, 32 ounce, 40 ounce, or similar size containers is prohibited.

2. (off-sale alcohol) No beer products shall be sold of less than manufacturer’s pre- packaged three-pack quantities of 24 ounce cans per sale. There shall be no sale of single cans or bottles.

3. (off-sale alcohol) No sale of wine shall be sold in containers of less than 750 milliliters.

The sale of wine with an alcoholic content greater than 15% by volume is prohibited.

4. (off-sale alcohol) Flavored malt beverages, also known as premium malt beverages and flavored malt coolers, and sometimes commonly referred to as wine coolers, may be sold only by four-pack or other manufacturer’s pre- packaged multi-unit quantities.

5. (off-sale alcohol) The consumption of alcoholic beverages is prohibited on the subject premises, and on all parking lots and outbuildings and any property or adjacent property under the control of the applicant.

6. (off-sale alcohol) All cups and containers shall be sold at or above prevailing prices and in their original multi-container packages of no fewer than 12, and no cups and containers shall be given free of charge.

7. (off-sale alcohol) Ice may be sold only at or about prevailing prices in the area and in quantities of not less than three pounds per sale. Ice shall not be provided free of charge.

8. (off-sale alcohol) The display of alcoholic beverages shall be limited to an area in substantial conformance with Exhibit____, Case File No.___, dated __.

9. (off-sale alcohol) Permittee shall post signs on the exterior building walls in compliance with Chapter 10.30.070 of the National City Municipal Code. Additionally, the permittee shall post signs, to be approved by the Planning Division, at each entrance to the applicant’s premises and parking lot, prohibiting loitering and consumption of alcohol on the premises and adjacent property under his control. Said signs shall not be less than 17 by 22

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: July 17, 2018
November 18, 2025
ADOPTED: November 12, 1991
POLICY # 707
TITLE: Alcohol Beverage License Application Review Process and Alcohol Conditional Use Permit Standards
inches in size, with lettering not less than one inch in height. The signs shall read as follows:
a. “No open alcoholic beverage containers are allowed on these premises.” b. “No loitering is allowed.”

10. (off-sale alcohol) Containers of alcohol may not be stored on the premises, after being sold to patrons, for the purpose of later consumption.

11. (off-sale alcohol) Exterior advertising and signs of all types, promoting or indicating the availability of alcoholic beverages, including advertising/signs directed to the exterior from within, are prohibited. Interior displays of alcoholic beverages and signs, which are clearly visible to the exterior, shall constitute a violation of this condition.

12. (off-sale alcohol) The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of all other commodities during the same period. The applicant shall at all times keep records which reflect separately the gross sales of alcoholic beverages and the gross sales of all other items. Said records shall be kept no less frequently than on a quarterly basis and shall be made available to the City Finance Department and any Peace Officer of the California Department of Alcoholic Beverage Control upon demand.

13. (on and off-sale alcohol) 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 RBSS training, the permittee shall make available a domestic violence training session as provided by the Institute of Public Strategies.

14. (on-sale alcohol) The sale of alcohol 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 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.

15. (on-sale alcohol) Alcohol shall be available only in conjunction with the purchase of food.

16. (on-sale alcohol with patio) Permittee shall post signs in the patio dining area, including all exits to outdoor seating areas, indicating that alcoholic beverages must be consumed inside the restaurant or patio area and may not be taken off-premises.

17. (tasting rooms) The requirements that alcohol be available only with the purchase of food

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CITY COUNCIL POLICY

CITY OF NATIONAL CITY

18. (tasting rooms) Sales of sealed bottles or containers (commonly known as growlers) for off- site consumption of the product manufactured by the master licensee may be sold and/or consumed at this location.

19. (tasting rooms) Hours of operation of tasting rooms shall be limited to between 10:00 a.m. to 10:00 p.m. with last call being at 9:00 p.m.

20. (tasting rooms) With the submittal of a business license for a tasting room, the Police Department shall provide an ABC Risk Assessment for each business applicant that indicates whether the business is considered a low, medium, or high risk. In the event that a risk assessment for the business allocates or more than 15 points, no business license shall be issued without the issuance of a Conditional Use Permit.

The sale of three-packs of 24-oz cans of beer shall apply retroactively to all existing off-sale CUPs where a condition exists limiting sales to no less than six -pack quantities. However, business wishing to avail themselves of this modification must conform with all regulations of the Department of Alcoholic Beverage Control (ABC).

The Council may, at its sole discretion, choose to waive or modify any of the above conditions.

Reference
None.

NCMC Section 18.30.050 Allowed Land Use and Permit Requirements (Brewery Tasting Room) NCMC Section 18.25.020 Fees
NCMC Section

Prior Policy Amendments:

November 12, 1991
None
August 16, 2011 (Resolution No. 2011-181)
December 19, 2017 (Resolution No. 2017-240)
July 17, 2018 (Resolution No. 2018-131)

Page 105 of 400 ends

AGENDA REPORT

Department: Community Services
Prepared by: Mike Pacheco, Director of Community Services Meeting Date: Tuesday, November 18, 2025
Approved by: Scott Huth, Interim City Manager

SUBJECT:

Authorization to Enter into a Grant Agreement with the County of San Diego for the Community Enhancement Program in the Amount of $20,000 for the “A Kimball Holiday” Event.

RECOMMENDATION:

Adopt a Resolution Entitled: “Resolution of the City Council of the City of National City, California, Authorizing the City Manager or Designee to Execute a Grant Agreement with the County of San Diego through its Community Enhancement Program in the Amount of $20,000 to Fund Enhancements for the “A Kimball Holiday” Event, and Authorizing the Es tablishment of Appropriations and a Corresponding Revenue Budget in the Amount of $20,000.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

The County of San Diego’s Community Enhancement Program (CEP) provides funding to support activities that stimulate tourism, promote the local economy, and enhance community well-being.

The program is funded through County Transient Occupancy Tax (TOT) revenues.

The City of National City was awarded $20,000 under the FY2025–2026 CEP cycle. To formally receive the funds, the City must execute a grant agreement with the County outlining the terms, use, and reporting requirements associated with the award.

Funds will be used for enhancements to the “A Kimball Holiday” community event, including the Ferris Wheel, artificial snow hill, and LED/light -up dance floor, all of which increase attendance, visibility, and regional tourism appeal.

The Community Services Department will administer the grant and ensure compliance with all County reporting and expenditure requirements.

FINANCIAL STATEMENT:

If approved, a budget adjustment will be made in the Citywide Grants Fund as follows:

Revenue Account No. 282-70-42-42403-3470- County Grants: $20,000 Expenditure Account No. 282-70-42-42403-7299- Contract Services: $20,000

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Not Applicable

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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:

Not Applicable

EXHIBITS:

Exhibit A – Resolution
Exhibit B – Grant Agreement

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RESOLUTION NO. 2025 -

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

AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A GRANT AGREEMENT

WITH THE COUNTY OF SAN DIEGO THROUGH ITS COMMUNITY ENHANCEMENT PROGRAM IN THE AMOUNT OF $20,000 TO SUPPORT THE “A KIMBALL HOLIDAY”

EVENT, AND AUTHORIZING THE ESTABLISHMENT OF APPROPRIATIONS AND A CORRESPONDING REVENUE BUDGET IN THE AMOUNT OF $20,000.

WHEREAS, the County of San Diego Board of Supervisors established the Community Enhancement Program (CEP) to provide funds for projects that stimulate tourism, promote the local economy, and enhance the quality of life; and

WHEREAS, the City of National City has been awarded $20,000 through the FY2025– 2026 CEP cycle to support enhancements for the “A Kimball Holiday” community event; and

WHEREAS, to receive and expend the funds, the City must enter into a grant agreement with the County specifying the eligible uses, term, and reporting requirements.

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

Section 1: That the City Council hereby authorizes the City Manager or designee, to execute a grant agreement with the County of San Diego through its Community Enhancement Program in the amount of $20,000 to support event activities for “A Kimball Holiday.”

Section 2: That the City Council also hereby authorizes the establishment of appropriations and a corresponding revenue budget in the amount of $20,000.

Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 18th day of November, 2025.

Ron Morrison, Mayor
ATTEST:

Shelley Chapel, MMC, City Clerk

APPROVED AS TO FORM:

Barry J. Schultz, City Attorney

Page 108 of 400 ends

AGREEMENT

COMMUNITY ENHANCEMENT PROGRAM

GRANT AGREEMENT BETWEEN

THE COUNTY OF SAN DIEGO
AND City of National City

This Grant Agreement is entered into between the County of San Diego, a political subdivision of the State of California (County), and City of National City, a Non-Profit Corporation (Grantee) on _______________ with an effective date of 10/22/2025.

WHEREAS during the 1982-83 fiscal year, the San Diego County Board of Supervisors established the Community Enhancement program; and

WHEREAS, pursuant to Board of Supervisors Policy B-58, the purpose of this Program is to provide funds to nonprofit and/or tax exempt organizations that stimulate tourism, promote the economy, create jobs, and improve the quality of life throughout San Diego County; and

WHEREAS, the County funds this program primarily with the County’s Transient Occupancy Tax;

WHEREAS, on 10/22/2025 (OCT-25), the Board of Supervisors allocated the grant funding set forth in this Agreement for the purpose described in this Agreement.

NOW, THEREFORE, the parties agree as follows:

1. Amount of Grant. The County agrees to pay Grantee the amount of $20,000.00. Under no circumstances is County obligated to pay Grantee more than this amount. County shall pay Grantee after County receives a signed copy of this Agreement from Grantee.

2. Purpose of Grant. Grantee shall use the grant funds provided by County under this Agreement solely for the following purpose: Funds will pay for the cost of the Ferris Wheel, ice needed to create a snow hill, and LED/Light up dance floor.

3. Term of Agreement. The term of this Agreement shall be for 13 months starting on the effective date as specified above.

4. Time Period for Use of Grant Funds and Documentation of Expenditures.

(a) Grantee shall spend all grant funds provided by the County for the purposes specified in Paragraph 2 within 12 months of the effective date of this Agreement as specified above.

(b) Grantee shall complete the Documentation of Grant Expenditures form provided by the County’s administrator, setting forth Grantee’s total actual expenditures of the grant funds provided under this Agreement. Grantee shall submit this completed form and the related documentation including, but not limited to, invoices/receipts, credit card statements, check stubs, check copies, copy of canceled checks, copy of bank statements, etc. to the County’s administrator promptly after spending the grant funds, but in no event after the end of the Term of Agreement specified above. If the parties agree to extend the Term of Agreement, Grantee shall submit this expenditure documentation by the end of the extended Term. If County’s administrator requests additional information regarding Grantee’s expenditure of the grant funds, Grantee shall promptly submit the requested information to County’s administrator.

(c) Grantee shall retain copies of all receipts, invoices, cash register tapes and other direct evidence of the expenditure of funds for which grant funds are used for the duration of the audit period specified in Paragraph 8.

County office use only

P – 1001836
O –12900
E – 53666
T – 001
A – 100122
Supplier # – 1114069

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AGREEMENT

(d) If after reviewing Grantee’s expenditure documentation, the County’s administrator:

(i) determines that the Grantee failed to spend all of the grant funds (ii) disallows any expenditure by Grantee;
(iii) determines that the grant funds provided exceed Grantee’s total actual expenditures authorized under this Agreement; or
(iv) grant funds were used in a manner contrary to Paragraphs 2 or 5

Grantee shall refund to the County the amount specified by the County’s administrator. Grantee shall make this refund within seven (7) County business days after receiving a written request for refund from the County’s administrator. In its sole discretion, the County may offset the refund amount from any payment due to or to become due to Grantee under this Agreement or any other agreement with the County.

(e) If Grantee fails to provide the required documentation of expenditures as required in Subparagraph (b) and (c) above, the County’s administrator may request Grantee to refund to the County all or any portion of the grant funds provided under this Agreement. Within seven (7) County business days of receipt of a written request for a refund, Grantee shall refund to the County the amount specified by the County’s administrator.

(f) If Grantee incurs expenses before the County pays the grant under this Agreement, the County will reimburse Grantee in an amount not to exceed the amount specified in Paragraph 1 upon submission of documentation to County’s administrator setting forth Grantee’s actual expenditures for the purpose specified in Paragraph 2 and approval of the documentation by County’s administrator.

5. Restrictions on use of grant funds.

(a) Grant funds shall not be used for any purpose prohibited by laws governing the use of public funds including, but not limited to, religious purposes, political campaigning, or purely private purposes or activities.
(b) If Grantee provides or participates in any activity for which public funds may not be used, such as religious activities, Grantee shall inform the County of this activity before accepting any grant funds. Grantee shall ensure that no grant funds awarded pursuant to the Agreement are used to support in any manner said activity. (c) Grantee shall not donate any grant funds to a third party. (d) Grantee may not include in its Documentation of Grant Expenditures report under this Agreement any expenditures for which Grantee has received or is or will be claiming funding from any other source.
(e) Grantee shall not assign or transfer any interest in this Agreement (whether by assignment or novation), without the prior written consent of the County. (f) Grantee shall comply with Board Policy B-58.
(g) Grantee’s failure to comply with any provision in Paragraph 5 shall constitute a material breach of this Agreement.

6. Administrator of Agreement. The Office of Economic Development and Government Affairs in the Chief Financial Officer’s Office shall administer this Agreement on behalf of the County, and Joanne McGhee at (619) 336-4243 shall administer it on behalf of Grantee. County and Grantee may from time to time designate a different administrator by providing notice in the manner required by Paragraph 7.

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AGREEMENT

7. Notice. All communications from Grantee to the County shall be sent to the Office of Economic Development and Government Affairs as listed below. Any notice or notices or other documentation required or permitted to be given pursuant to this Agreement may be personally served on the other party by the party giving such notice, or may be served by certified mail, postage prepaid, re turn receipt requested, to the following addresses.
.

County: Deputy Chief Administrative Officer/Chief Financial Officer Office of Economic Development and Government Affairs
County of San Diego
1600 Pacific Highway Room 152
San Diego, CA 92101

Grantee: City of National City
City of National City National City branch
1243 National City Blvd
National City, CA 91950

Notices that are personally served shall be deemed delivered on the date served. Notices sent by certified mail shall be deemed delivered 5 County business days after mailing. County and Grantee may from time to time designate a new address for providing notice by providing notice of the new address in accordance with this Paragraph.

8. Audit and Inspection of Records. At any time during normal business hours and as often as the County may deem necessary, the Grantee shall make available, within 5 County business days of the receipt of a request, to the County for examination all of its records with respect to all matters covered by this Agreement and will permit the County to audit, examine and make excerpts or transcripts from such records, and make audits of all invoices, materials, payrolls, records of personnel and other data relating to all matters covered by this Agreement. Unless otherwise specified by the County, said records shall be made available for examination within San Diego County, California. Grantee shall maintain such records in an accessible location and condition to the later of a period of four (4) years after the termination of this Agreement unless County agrees in writing to an earlier disposition. The State of California or any Federal agency having an interest in the subject of this Agreement shall have the same rights conferred upon County by this Agreement.

9. Termination of Agreement for Cause. If Grantee fails to perform its obligations according to this Agreement, the County may send Grantee a written notice of default that specifies the nature of the default. Grantee shall cure the default within 3 County business days following receipt of the notice of default. If Grantee fails to cure the default within that time, the County may terminate this Agreement by giving Grantee written notice of immediate termination. Upon termination, Grantee shall promptly provide County's administrator with Documentation of Grant Expenditures setting forth Grantee's total actual expenditures for the purpose of the grant as of the effective date of termination. Grantee shall promptly refund to County all funds County paid to Grantee under this Agreement that exceed Grantee's total actual expenditures for the purpose of the grant, as determined by County's administrator, as of the effective date of termination. The County may also seek any and all legal and equitable remedies against Grantee for breaching this Agreement.

10. Termination for Convenience of County. County may terminate this Agreement at any time by giving written notice to Grantee of such termination and specifying the effective date thereof at least 30 County business days before the effective date of such termination. On or before the date of termination, Grantee shall provide County’s administrator with Documentation of Grant Expenditures setting forth Grantee’s total actual expenditures for the purpose of the grant as of the effective date of termination. Grantee shall promptly refund to County all funds County paid to Grantee under this Agreement that exceed Grantee’s total actual expenditures for the purpose of the grant, as determined by County’s administrator, as of the effective date of termination.

11. Termination for Convenience of Grantee. Grantee may terminate this Agreement at any time by giving written notice to County's administrator of such termination and specifying the effective date

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AGREEMENT

thereof at least 60 County business days before the effective date of such termination. On or before the date of termination, Grantee shall provide County’s administrator with Documentation of Grant Expenditures setting forth Grantee’s total actual expenditures for the purpose of the grant as of the effective date of termination. Grantee shall promptly refund to County all funds County paid to Grantee under this Agreement that exceed Grantee’s total actual expenditure for the purpose of the grant, as determined by County’s administrator, as of the effective date of termination.

12. Interest of Grantee. Grantee covenants that Grantee presently has no interest, including, but not limited to, other projects or independent contracts, and shall not acquire any such interest, direct or indirect, which would conflict in any manner or degree with Grantee's completing the purpose of the grant as specified in Paragraph 2. Grantee further covenants that in the performance of this Agreement, no person having any such interest shall be employed or retained by Grantee.

13. Publication, Reproduction and Use of Material. No material produced, in whole or in part, under this Agreement shall be subject to copyright in the United States or in any other Country. The County shall have unrestricted authority to publish, disclose, distribute, and otherwise use, in whole or in part, any reports, data or other materials prepared under this Agreement.

14. Insurance. Grantee shall maintain insurance against claims or injuries to person or damages to property that may arise from or in connection with the use of the grant funds by Grantee, its agents, representatives, employees, volunteers or subcontractors. The cost of such insurance shall be borne by Grantee and coverage limits shall be a minimum of $1,000,000 General Liability per occurrence/$1,000,000 aggregate for operations, products and completed operations for bodily injury, personal injury and property damage; $500,000 Automobile Liability per accident for bodily injury and property damage; and Workers’ Compensation and Employers Liability Insurance as required by the California Labor Code. County shall retain the right at any time to review the coverage and amount of insurance required.

15. Independent Capacity. In the performance of this Agreement, Grantee and its agents, employees and volunteers shall act in an independent capacity and not as officers, employees, agents or volunteers of the County. This Agreement does not create an employment relationship between Grantee and the County.

16. Equal Opportunity. Grantee will not discriminate against any employee, or against any applicant for such employment because of age, race, color, religion, physical handicap, ancestry, sex, or national origin. This provision shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

17. Defense and Indemnity. To the fullest extent permitted by law, County shall not be liable for, and Grantee shall defend and indemnify County and its officers, agents, employees and volunteers (collectively, “County Parties”) against any and all claims, deductibles, self-insured retention’s, demands, liability, judgments, awards, fines, mechanics’ liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or character, including attorneys’ fees and court costs (collectively, “Claims”), which arise out of or are in any way connected to County’s provision of grant funds and/or Grantee’s use of grant funds under this Agreement arising either directly or indirectly from any act, error, omission or negligence of Grantee or its officers, employees, volunteers, agents, contractors, licensees or servants, including without limitation, Claims caused by the sole passive negligent act or the concurrent negligent act, error or omission, whether active or passive, of County Parties. Grantee shall have no obligation, however, to defend or indemnify County Parties from a Claim if it is determined by a court of competent jurisdiction that such Claim was caused by the sole active negligent act or willful misconduct of County Parties.

18. Governing Law. This Agreement shall be construed and interpreted according to the laws of the State of California.

19. Complete Agreement. This Agreement constitutes the entire agreement between Grantee and County regarding the subject matter contained herein. All other representations, oral or written, are superseded

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AGREEMENT

by this Agreement. Neither party is relying on any representation outside of this Agreement. This Agreement may be changed only by written amendment signed by both parties.

20. Waiver. The failure of either party to enforce any term, covenant or condition of this Agreement shall not be construed as a waiver of that party’s right to subsequently enforce this, or any other term, covenant or condition of this Agreement. No waiver shall be deemed effective unless the waiver is expressly stated in writing and signed by the party waiving the right or benefit.

21. Consultation with Counsel. Each party has had the opportunity to consult with independent legal counsel of its own choosing before executing this Agreement and has executed this Agreement without fraud, duress, or undue influence of any kind.

22. Interpretation. The provisions of this Agreement shall be liberally construed to effectuate its purpose. The language of all parts of this Agreement shall be construed simply according to its plain meaning and shall not be construed for or against either party.

23. Corporation Qualified to Do Business in California. If Grantee is a corporation, Grantee warrants that it is a corporation in good standing and is currently authorized to do business in California.

24. Terms and Conditions Survive Expiration of Term of Agreement. Unless otherwise specified herein, all terms and conditions of this Agreement shall survive the expiration of the Term of Agreement specified in Paragraph 3 above.

25. Remedies. Unless otherwise expressly provided herein, the rights and remedies in this Agreement are in addition to, and not a limitation on, other rights and remedies under this Agreement, at law or in equity, and exercise of one right or remedy shall not be deemed a waiver of any other right or remedy.

26. Prevailing Wage. Unless exempted by applicable law (e.g., Labor Code § 1720.4), projects using over $1,000 of grant funds for construction, alteration, demolition, installation, repair, refuse and ready mix concrete hauling, maintenance work, or any other work for which prevailing wages must be paid by Labor Code § 1720 et seq. shall be deemed a “public work” for State prevailing wage purposes. It is not the intent of this Agreement to impose an obligation to pay prevailing wages on work otherwise exempt from applicable prevailing wage laws. Grantee shall be solely responsible for ensuring prevailing wages are paid when owed.

Projects subject to the payment of State prevailing wages are subject to compliance monitoring and enforcement by the Department of Industrial Relations. Grantee shall be responsible for ensuring all required job site postings and all certified payroll and other reporting applicable to it as an awarding body are completed in accordance with the State’s prevailing wage regulations. Information regarding the State’s prevailing wage requirements can be obtained from the Director, Department of Industrial Relations at www.dir.ca.gov , Labor Code § 1720, et seq., and 8 Cal. Code of Regs. § 16000, et seq.

27. Counterparts and Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed using electronic or digital signatures in accordance with California law, which signatures shall be deemed an original.

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AGREEMENT

WHEREFORE, the parties execute this Agreement on the date first written above.

COUNTY OF SAN DIEGO

GRANTEE

By: _______________________________

By:__________________________ Date_______
Deputy Chief Administrative Officer/Chief
Financial Officer
or Designated Representative
Authorized signatory

Matthew Parr, Director
Print Name and Title
Office of Economic Development
and Government Affairs

[Note: Person signing on behalf of Grantee must be authorized by Grantee’s Board of Directors to sign this Agreement and must be same person Grantee listed in its funding application as being authorized to sign.]

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AGENDA REPORT

Department: Library
Prepared by: Danielle Ghio, Director of Library Services Meeting Date: Tuesday, November 18, 2025
Approved by: Scott W. Huth, Interim City Manager

SUBJECT:

California Library Adult and Family Literacy Services Grant Funds Acceptance.

RECOMMENDATION:

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Approved by the Board of Library Trustees at the regular meeting of November 6, 2025.

EXPLANATION:

California Library Literacy Services was developed in 1984 as the first statewide library -based adult literacy service. Since then, library literacy programs have helped more than a quarter of a million learners and their families.

Since 1984, the National City Public Library has assisted adults who seek to achieve their desired educational, professional, and academic goal s. To better serve our community and allow more access to the program, it is offered either in-person, online or a hybrid of both. Adults in the literacy program are offered comprehensive tutoring in reading, writing, mathematics, basic computer and technology skills, GED/HiSet and ASVAB preparation, citizenship education, as well as skills for interviewing and resume writing. In the FY 2024-2025 the program assisted 156 learners.

The program allows learners to achieve personal goals such as learning the alphabet, reading a book for the first time, getting a job, sharing a book with a child, reading a medicine label, volunteering in the community, and voting. Our Library has also developed a strong program with curriculum in digital literacy.

The California Library Literacy Services (CLLS) grant is designed to support the Library’s literacy services program for adults who seek to improve their reading, writing, math, and computer skills.

The award amount the State Library provides to libraries that offer li teracy services to their communities is based on a three-part funding formula:

1. A baseline amount ($20,000) for each approved library literacy program;

2. A per capita amount per adult learner served in the previous year’s program; and

3. Additional funding raised by local funds earmarked for adult literacy services. This local funding is fulfilled by General Fund personnel costs for the operation of the literacy program.

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The National City Public Library’s Adult Literacy Program provides literacy services to English- speaking adults, helping them reach their goals as lifelong learners, community members, workers, and family members. The Adult Literacy Program values learner-centered education and places the real-world needs and interests of adults at the center of the curriculum.

The National City Public Library beg an a Family Literacy pilot program in 2023 -2024 which Supports the literacy development within the home and family unit. Family Literacy Services contribute to strong communities and families. The focus is building strong foundations in reading, writing, and other language -based programs and activities for adult literacy learners and their families. By incorporating literacy into daily routines and interactions, families can improve their overall communication and educational outcomes. The program has grown from 20 families to over 100 families who participate.

The California Library Literacy Services (CLLS) grant is designed to support the Library’s literacy services program for families who seek to improve their reading, writing, math, and computer skills. The family literacy program provides family literacy packets that include lesson plans, children’s books, craft activities, and assignments for families to do together. The program also provides workshops that focus on family learning goals as well as connect and engage families with programming, resources, and each other to obtain each learner’s goals and aspirations.

FINANCIAL STATEMENT:

The CLLS grant is awarded in two installment payments. The first payment of $ 62,233 (90% of the Award) is being awarded at this time. The second payment of $ 6,914, representing the remaining 10% of the total award for FY 2026, will be claimed at a later date upon submission of the mid-year narrative and financial reports that demonstrate program activity and confirm that 75% of the award has been expended. The total award amount for FY 2026 will be $69,147. The budget adjustment will be made in the Library Grants Fund as follows:

Expenditures:

Account 320-50-41-41407-7222- Memberships & Subscriptions: $32,000 Account 320-50-41-41407-7399- Materials & Supplies: $37,147 Revenues:

Account 320-50-41-41407-3463- Other State Grants: $69,147

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Parks, Recreation and Library

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:

Not Applicable

EXHIBITS:

Exhibit A – Adult and Family Literacy FY 26
Exhibit B - Resolution

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Library – Courts Building 916-323-9759
P.O. Box 942837 [email protected]
Sacramento, CA 94237-0001 www.library.ca.gov

THE BASICS – YOUR GRANT AWARD
The following provides all the basic information about your grant and managing your grant.

Award #: CLLS25-50
Library/Organization: National City Public Library
Project Title: California Library Literacy Services
Award Amount: $69,147
Start Date: July 1, 2025
End Date: September 30, 2026
NOTE: It can take six to eight weeks before grant funds are delivered. If you have not received your payment after eight weeks, contact your grant monitor.

GRANT AWARD INFORMATION
You can access your full grant award information and manage your grant through the grant management system, AmpliFund.

NOTE: You are required to submit a budget amendment for all budget changes regardless of amount. Amendments may be submitted throughout the year but no later than May 31 of the project period.

REPORTING
California Library Literacy Services participants are required to provide financial and narrative reports as outlined in the grant terms and conditions. The reporting schedule is detailed below:

Mid-Year Report Due January 31, 2026
Final Report Due September 30, 2026

Reports will be submitted through the AmpliFund grant management system. You can find support documents on the California State Library’s Manage Your Current Grant page.

PAYMENTS
Libraries receive 90% of their total award amount upon receipt of the award letter.

Libraries receive the final 10% payment of their total award after successful completion of the California Library Literacy Services Mid-Year Report form.

Docusign Envelope ID: DE1D67FB-1CA8-4BBF-9D21-35DBBD25BA8A

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Library – Courts Building 916-323-9759
P.O. Box 942837 [email protected]
Sacramento, CA 94237-0001 www.library.ca.gov

NOTE: Libraries have 15 months to spend their California Library Literacy Services award funds, from July 1, 2025, in which the funds are awarded until September 30 of the following year or when the final report is due.

CONTACT
We want your project to be successful. Please work with your grant monitor and program consultant to implement your project:

Grant Monitor: Allyson Jeffredo
Monitor Phone Number: 916-603-6709
Monitor Email Address: [email protected]
Program Consultant: Julianna Robbins
Consultant Phone Number: 916-603-6712
Consultant Email Address: [email protected]

Docusign Envelope ID: DE1D67FB-1CA8-4BBF-9D21-35DBBD25BA8A

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RESOLUTION NO. 2025 -

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

AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ACCEPT THE CALIFORNIA LIBRARY LITERACY SERVICES (CLLS) GRANT IN THE AMOUNT OF $69,147 TO FUND THE NATIONAL CITY PUBLIC LIBRARY’S LITERAC Y SERVICES PROGRAM S FOR F ISCAL YEAR 2026 AND AUTHORIZING THE ESTABLISHMENT OF A LIBRARY GRANTS FUND

APPROPRIATION AND CORRESPONDING REVENUE BUDGET IN THE AMOUNT OF $69,147.

WHEREAS, the California Library Literacy Services (“CLLS”) Grant is designed to support the National City Public Library’s Literacy Services Program to English-speaking adults who seek to improve their reading, writing, and math skills; and WHEREAS, since 1984, the National City Public Library has assisted adults who seek to improve their reading skills and achieve personal goals such as learning the alphabet, reading a book for the first time, getting a job, sharing a book with a child, reading a medicine label, volunteering in the community, and voting; and
WHEREAS, the National City Public Library beg an a Family Literacy pilot program in 2023-2024 which supports literacy development within the home and family unit were the focus is building strong foundations in reading, writing, and other language -based programs and activities for adult literacy learners and their families; and

WHEREAS, the CLLS Grant is provided to the Library in two payments each year; the first payment of $ 62,233 (90% of the Award) is the baseline amount, and the second payment of $6,914, representing the remaining 10% of the total Award for FY 2026, can be claimed at a later date upon submission of the mid -year narrative and financial report that demonstrates project activity and confirmation that 75% of the Award has been expended for a total Award amount of $69,147 for Fiscal Year 2026.

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

Section 1: That the City Council hereby authorizes the City Manager or his designee to accept the grant funds in the amount of $69,147 from the California Library Literacy Services to fund the National City Public Library’s Literacy Services Program s for Fiscal Year 202 6 and authorizes the establishment of Library Grant Fund appropriations and a corresponding revenue budget in the amount of $69,147.

Section 2: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 18th day of November, 2025.

Ron Morrison, Mayor
ATTEST:

Shelley Chapel, City Clerk
APPROVED AS TO FORM:

Barry J. Schultz, City Attorney

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AGENDA REPORT

Department: Police Department
Prepared by: Joseph Camacho, Sergeant
Meeting Date: Tuesday, November 18, 2025
Approved by: Scott Huth, Interim City Manager

SUBJECT:

Department of Alcoholic Beverage Control – Office of Traffic Safety Award of $30,000 to the National City Police Department

RECOMMENDATION:

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

In August of 2025, the National City Police Department submitted an application to the Department of Alcoholic Beverage Control for consideration to be awarded up to $30,000 as a part of the Department of Alcoholic Beverage Control’s Minor Decoy/Shoulder Tap Grant Project, funded by the California Office of Traffic Safety through the National Highway Traffic Safety Administration.

On September 26, 2025, the National City Police Department was advised by the Department of Alcoholic Beverage Control that the National City Police Department had been selected to participate in the Department of Alcoholic Beverage Control’s ABC-OTS Grant Program and had been awarded $30,000. As part of the grant, the Department of Alcoholic Beverage Control requests a signed resolution from the National City Police Department’s governing body (Refer to Exhibit E – ABC Congratulations Letter to NCPD , Exhibit F – ABC-OTS Grant Program Information Sheet and Exhibit H - Resolution).

In addition, the Department of Alcoholic Beverage Control submitted a “Standard Agreement” which will be signed by Chief Alejandro Hernandez with agreed upon terms and conditions for the scope of work performed during grant funded operations, budget details and payment provisions, general terms and condi tions, and special terms and conditions (Refer to Exhibit G – ABC and NCPD Standard Agreement and Exhibits A through D – ABC OTS Exhibits).

The Police Department proposes the acceptance of the grant monies to allow for police operations focused on community safety, reductions of alcohol sales to minors, and regulation/education of Police Regulated Business that vendor alcohol within National City.

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FINANCIAL STATEMENT:

Budget adjustments will be made in the Police Department Grants Fund as follows:

Revenues:
290-70-21-21700-3463- Other State Grants – ABC-OTS $30,000

Expenditures:
290-70-21-21700-6102- Overtime $25,904 290-70-21-21700-6140- Worker’s Compensation $2,520 290-70-21-21700-6161- Medicare $376 290-70-21-21700-7226- Training, Travel & Subsistence $1,200

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Public Safety

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:

Not Applicable

EXHIBITS:

Exhibit A – ABC-OTS Scope of Work
Exhibit B – ABC-OTS Budget Detail and Payment Provisions Exhibit C – ABC-OTS General Terms and Conditions
Exhibit D – ABC-OTS Special Terms and Conditions
Exhibit E – ABC-OTS Congratulations Letter to NCPD
Exhibit F – ABC-OTS Grant Program Information Sheet
Exhibit G – ABC-NCPD Standard Agreement
Exhibit H – Resolution

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Agreement Number: 26-OTS113
City of National City through the National City Police Department

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EXHIBIT A

SCOPE OF WORK

Purpose and Description of Services

Contractor agrees to implement the Department of Alcoholic Beverage Control programs as listed:

x Minor Decoy operations – designed to educate and deter licensed locations from selling/furnishing alcohol to minors and shall be conducted at both “On-Sale” and “Off-Sale” licensed establishments within the operations period of the grant.

x Shoulder Tap operations – used to detect and deter adult furnishers outside of a licensed business and shall be performed at “Off-Sale” licensed locations to apprehend adults that are unaffiliated with the licensed businesses who are purchasing alcohol for minors outside of the stores within the operation period of the grant.

x Informed Merchants Preventing Alcohol-Related Crime Tendencies (IMPACT) Inspections – primary goal is to educate licensees on alcohol related laws to help reduce alcohol-related crime in and around licensed premises. Contractor agrees to conduct visits and inspections of licensed premises identifying areas of non-compliance at “On-Sale” and “Off-Sale” licensed locations within the operation period of the grant.

x Holiday Enforcement – This program consists of working general undercover and high-profile enforcement targeting underage drinking, sales/furnishing to minors, sales to obviously intoxicated patrons, and other related violations.

Holidays shall be defined as:
o Halloween – Friday, October 31 to Sunday, November 2, 2025 o Thanksgiving – Wednesday, November 26 to November 30, 2025 o New Year’s Eve – Wednesday, December 31, 2025
o St. Patrick’s Day – Friday, March 13 to Tuesday, March 17, 2026 o Cinco de Mayo – Friday, May 1 to Tuesday, May 5, 2026 o Memorial Day Weekend – Friday, May 22 to Monday, May 25, 2026 o 4
th of July – Friday, July 3 to Sunday, July 5, 2026

The project is targeted to reduce underage drinking and the resultant DUI driving injuries and fatalities, and/or property damages, reduce youth access to alcoholic beverages through the education of licensee, enforcement intervention and the impressions of omnipresence of law enforcement.

In addition, contractor agrees to the following goals:

x Raise public awareness that selling, serving and/or furnishing alcoholic beverages to individuals under twenty-one years old is a criminal violation that will be prosecuted by local city and district attorneys.

x Establish and implement a coordinated effort between contactor and ABC, and acknowledges no operations will be conducted until after the contractor’s representative has completed training conducted by ABC.

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Agreement Number: 26-OTS113
City of National City through the National City Police Department

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x Issue press releases as follows:
o To announce the start of the program
o At the conclusion of each Minor Decoy Operation held (to announce the number of licensed premises who sold to the minor decoy).
o At the conclusion of each Shoulder Tap Operation held (to announce the number of adults arrested for purchasing alcoholic beverages for the decoy). o At the conclusion of each IMPACT operation held.

x Email each press release to the Department’s Public Information Office, [email protected] as soon as it is released.

x In all press releases, in addition to any credits the agency wishes to give, will include the following statement: “This project is part of the Department of Alcoholic Beverage Control’s Minor Decoy/Shoulder Tap Grant Project, funded by the California Office of Traffic Safety through the National Highway Traffic Safety Administration.”

x Complete and submit bi-monthly reports, in a format designed by ABC due no later than the following:
o On or before January 15, 2026 (with results of operations October, November & December 2025)
o On or before March 15, 2026 (with results of operations January & February 2026) o On or before May 15, 2026 (with results of operations March & April 2026) o On or before July 15, 2026 (with results of operations May & June 2026) o On or before September 15, 2026 (With results of operations July & August 2026)

x Submit an Executive Summary as part of the final report due on or before September 15, 2026.

The summary shall contain the following:
o An evaluation statement concerning the end product and cost benefits; and a listing of recommended and/or adopted policy or procedure changes, if any, occurring as a result of the project.
o Project personnel identifying the key personnel who worked on the project, together with their job classification, and a brief description of their contribution. o Problems – describe any operational or cost problems that were encountered in project implementation. If known, state alternative methods that would have avoided the problem and increased the effectiveness of the project.
o Results – describe the results of the project in terms of meeting the original objectives as stated in the project agreement. Also, describe the results in terms of how they will be specifically applied for future improvement of the agency’s continuing activities relating to alcohol problem prevention and enforcement. Where possible, describe estimated savings resulting from implementing project results.
o Disclaimer – The final report shall include the following: “ The opinions, findings, and conclusions expressed in this publication are those of the authors and not necessarily those of the State of California, Business, Consumer Services and Housing Agency, or the Department of Alcoholic Beverage Control.”
o Documentation – Attach any relevant documents developed. Examples are new or revised forms, diagrams, management reports, photos, coding manuals, instructional manuals, etc.

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Agreement Number: 26-OTS113
City of National City through the National City Police Department

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Contract Term

The operation period of the grant is October 1, 2025 through August 31, 2026

Project Representatives

The project representatives during the term of this agreement will be:

National City Police Department Alcoholic Beverage Control Sgt. Joseph Camacho Diana Fouts-Guter, Grant Coordinator 1200 National City Blvd 3927 Lennane Drive, Suite 100
National City, CA 91950 Sacramento, CA 95834
(619) 578-3366 (916) 928-9807
[email protected] [email protected]

National City Police Department Alcoholic Beverage Control Ronald Gutlay Kristine Okino, Grant Fiscal Analyst
1200 National City Blvd 3927 Lennane Drive, Suite 100
National City, CA 91950 Sacramento, CA 95834
(619) 336-4517 [email protected]
[email protected]

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Agreement Number: 26-OTS113
City of National City through the National City Police Department

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EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS

INVOICING AND PAYMENT

x For services satisfactorily rendered, and upon receipt and approval of services, Alcoholic Beverage Control agrees to compensate for approved reimbursable costs of personnel overtime and benefits (actual cost) and travel.

x Invoices shall clearly reference the agreement number 26-OTS113 and must not exceed the total authorized contract amount of $30,000. Invoices shall be submitted on a bi-monthly basis, on the prescribed form designed by ABC.

Submit to: Department of Alcoholic Beverage Control
Attn: Kristine Okino, Grants Fiscal Analyst
3927 Lennane Drive, Suite 100
Sacramento, CA 95834

x This grant is only for overtime compensation on approved operations and travel for training held on October 16, 2025 only.

x In accordance with State of CA travel policy, agencies are eligible to receive reimbursement for travel expenses incurred for training on October 16, 2025. https://www.calhr.ca.gov/about-calhr/divisions- programs/benefits/travel-reimbursements/

x Payment shall be made in arrears within 45 days from the receipt of an undisputed invoice.

x Contractor understands in order to eligible for reimbursement; cost must be incurred on or after the effective date of the project, October 1, 2025 and on or before the project termination date, August 31, 2026.

x Contractor understands any other costs incurred by contractor, other than attendance at initial training and/or personnel overtime and benefits as authorized above, in the performance of this agreement are the sole responsibility of contractor.

BUDGET CONTINGENCY CLAUSE

x It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this agreement does not appropriate sufficient funds for the program, this agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to contractor or to furnish any other considerations under this agreement and contractor shall not be obligated to perform any provisions of this agreement.

x If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this agreement with no liability occurring to the State, or offer an agreement amendment to contractor to reflect the reduced amount.

PROMPT PAYMENT CLAUSE

Payment will be made in accordance with, and within the time specified in, Government Code Chapter

4.5, commencing with Section 927.

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Agreement Number: 26-OTS113
City of National City through the National City Police Department

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EXHIBIT C

GENERAL TERMS AND CONDITIONS

1. APPROVAL: This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor may not commence performance until such approval has been obtained.

2. AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties.

3. ASSIGNMENT: This Agreement is not assignable by the Contractor, either in whole or in part, without the consent of the State in the form of a formal written amendment.

4. AUDIT: Contractor agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement.

Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896).

5. INDEMNIFICATION: Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Contractor in the performance of this Agreement.

6. DISPUTES: Contractor shall continue with the responsibilities under this Agreement during any dispute.

7. TERMINATION FOR CAUSE: The State may terminate this Agreement and be relieved of any payments should the Contractor fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the Contractor under this Agreement and the balance, if any, shall be paid to the Contractor upon demand.

8. INDEPENDENT CONTRACTOR : Contractor, and the agents and employees of Contractor, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State.

9. RECYCLING CERTIFICATION: The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Public Contract Code Section

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Agreement Number: 26-OTS113
City of National City through the National City Police Department

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12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code §12205).

10. NON-DISCRIMINATION CLAUSE: During the performance of this Agreement, Contractor and its subcontractors shall not deny the contract’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Contractor shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135- 11139.5), and the regulations or standards adopted by the awarding state agency to implement such article. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the awarding state agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.)

Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement.

11. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 04/2017 are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto.

12. TIMELINESS: Time is of the essence in this Agreement.

13. COMPENSATION: The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided.

14. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance with the laws of the State of California.

15. ANTITRUST CLAIMS: The Contractor by signing this agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Contractor shall comply with the requirements of the Government Codes Sections set out below.

a. The Government Code Chapter on Antitrust claims contains the following definitions:

1) "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code.

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Agreement Number: 26-OTS113
City of National City through the National City Police Department

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2) "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550.

b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec.15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code),arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552.

c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter ,the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to over charges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553.

d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a)the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554.

16. CHILD SUPPORT COMPLIANCE ACT: For any Agreement in excess of $100,000, the contractor acknowledges in accordance with Public Contract Code 7110, that:

a. The contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and

b. The contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

17. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

18. PRIORITY HIRING CONSIDERATIONS: If this Contract includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353.

19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS:

a. If for this Contract Contractor made a commitment to achieve small business participation, then Contractor must within 60 days of receiving final payment under this Contract (or within

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Agreement Number: 26-OTS113
City of National City through the National City Police Department

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such other time period as may be specified elsewhere in this Contract) report to the awarding department the actual percentage of small business participation that was achieved. (Govt.

Code § 14841.)

b. If for this Contract Contractor made a commitment to achieve disabled veteran business enterprise (DVBE) participation, then Contractor must within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract) certify in a report to the awarding department: (1) the total amount the prime Contractor received under the Contract; (2) the name and address of the DVBE(s) that participated in the performance of the Contract; (3) the amount each DVBE received from the prime Contractor; (4) that all payments under the Contract have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.)

20. LOSS LEADER: If this contract involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC 10344(e).)

21. GENERATIVE AI DISCLOSURE OBLIGATIONS:
a. The following terms are in addition to the defined terms and shall apply to the Contract:

1) “Generative AI (GenAI)” means an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system's training data. (Gov. Code § 11549.64.)

b. Contractor shall immediately notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI.

c. Notification shall be provided to the State designee identified in this Contract.

d. At the direction of the State, Contractor shall discontinue the provision to the State of any previously unreported GenAI that results in a material impact to the functionality of the System, risk to the State, or Contract performance, as determined by the State.

e. If the use of previously undisclosed GenAI is approved by the State, then Contractor will update the Deliverable description, and the Parties will amend the Contract accordingly, which may include incorporating the GenAI Special Provisions into the Contract, at no additional cost to the State.

f. The State, at its sole discretion, may consider Contractor’s failure to disclose or discontinue the provision or use of GenAI as described above, to constitute a material breach of Contract when such failure results in a material impact to the functionality of the System, risk to the State, or Contract performance. The State is entitled to seek any and all remedies available to it under law as a result of such breach, including but not limited to termination of the contract.

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National City City CouncilNovember 18, 2025

National City City Council
November 18, 2025