National City City Council
January 20, 2026

RESOLUTION NO. 2026 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA, ADOPTING THE 2025 DEVELOPMENT IMPACT FEE SCHEDULE.

WHEREAS, Section 66000, et seq. of the Government Code, enacted by the State of California in 1987, allows cities to charge Development Impact Fees to offset the costs associated with providing new infrastructure and facilities demanded as a result of developme nt, subject to assessment, spending, and disclosure requirements per Assembly Bill 1600 (“AB 1600”); and WHEREAS, it was determined that adjustments in Development Impact Fees may be necessary to close the gap between current fees and actual facility development and construction costs because the City of National City’s (“City”) Development Impact Fee Schedule had not been updated since 2005; and
WHEREAS, on January 29, 2024, the City entered into an agreement with David Taussig and Associates (“DTA”) to conduct a comprehensive AB 1600 DIF Nexus Study for the purpose of establishing updated Development Impact Fees and to recommend the appropriate fee justification methodology and fee levels to support specific types of City-selected capital facilities needed to serve new growth and determine whether there are additional Development Impact Fees that may be implemented; and
WHEREAS, the completed Development Impact Fee Study is presented in Exhibit B to the Agenda Report and provides the necessary analysis and justification to support the proposed new City of National City 2025 Development Impact Fee Schedule as shown in Exhibit C; and WHEREAS, staff recommends that the new Development Impact Fee Schedule be adopted and be regularly reviewed and updated to ensure cost recovery is maintained in future years based on the California Construction Cost Index; and WHEREAS, a public hearing to conside r adjustments to City user fees was held at a publicly noticed regularly scheduled City Council meeting on January 20, 2026, wherein the City Council considered oral and written presentations of City staff, and members of the public; and WHEREAS, after said public hearing, approved changes to City fees will become effective after at least ninety (90) days; therefore, if adopted on January 20, 2026, the 2025 Development Impact Fee Schedule will become effective no sooner than April 20, 2026.

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

Section 1: That the City Council hereby adopts the 2025 Development Impact Fee Schedule, superseding all fees previously established for said activities. The 2025 Development Impact Fee Schedule is attached to the Agenda Report as Exhibit C.

Section 2: That the City Council hereby authorizes City staff to annually review at the beginning of each fiscal year the Development Impact Fees to ensure cost recovery is maintained in future years based on the California Construction Cost Index or other relevant data that may

be available and make recommendations for changes to the Development Impact Fees to the City Council.

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 20th day of January, 2026.

Ron Morrison, Mayor

ATTEST:

Shelley Chapel, MMC, City Clerk

APPROVED AS TO FORM:

Richard E. Romero, Acting City Attorney

Existing Land Uses
[a] [b]
[c] = [a] /[d], or
[c] = [b] / ([d] / 1,000) [d]
Residents per Unit/ Number of Units/
No. of Residents Number of Guests & Employees per Room/ Number of Rooms/ Land Use Type No. of Hotel Guests [1] Employees [2] Employees per 1,000 Non-Res. SF Non-Res. SF Residential 53,395 0 3.08 17,323
Hotel 459 146 0.79 765
Commercial / Retail 0 13,554 2.64 5,136,492
Office 0 2,985 3.51 851,000
Industrial 0 4,113 1.01 4,053,085
Institutional / Other 0 3,118 3.13 996,892
Total 53,854 23,916 NA NA
Projected New Land Uses
Residents per Unit/ Number of Units/
No. of Residents Number of Guests & Employees per Room/ Number of Rooms/ Land Use Type No. of Hotel Guests Employees Employees per 1,000 Non-Res. SF Non-Res. SF [3] Residential 9,415 0 3.08 3,055
Hotel 19 6 0.79 31
Commercial / Retail 0 552 2.64 209,357
Office 0 122 3.51 34,686
Industrial 0 168 1.01 165,199
Institutional / Other 0 127 3.13 40,632
Total 9,434 975 NA NA
Buildout Land Uses
Residents per Unit/ Number of Units/
No. of Residents Number of Guests & Employees per Room/ Number of Rooms/ Land Use Type No. of Hotel Guests Employees Employees per 1,000 Non-Res. SF Non-Res. SF [3] Residential 62,810 0 3.08 20,378
Hotel 478 152 0.79 796
Commercial / Retail 0 14,106 2.64 5,345,849
Office 0 3,107 3.51 885,686
Industrial 0 4,281 1.01 4,218,284
Institutional / Other 0 3,245 3.13 1,037,524
Total 63,288 24,891 NA NA
[1] Source: California Department of Finance, E-5 City/County Population and Housing Estimates (1/1/24).

Hotel guests based on a 60% occupancy rate for the existing hotel rooms in the City. [2] Source: Nielsen Companies, EmploymentProfiles | Employment by NAICS Codes (2024). [3] For residential, based on the SANDAG Regional Growth Forecast (2020), an annualized growth rate of approximately 0.54% is utilized through 2040.

For non-residential, an annualized growth rate of 0.25% is utilized through 2040.

APPENDIX A-1

LAND USE AND DEMOGRAPHIC ASSUMPTIONS

NATIONAL CITY, CALIFORNIA

Existing DU Calculation
Service Factor (Residents and Employees)
[a] [b]
[c] = [a] +
50% x [b]
[d] = [c] /[f], or
[d] = [c] / ([f] / 1,000) [e] = [d] / 3.50 [f] [g] = [e] x [f] Persons Served per Unit/ EDUs per Unit/ Number of Units/ Number of Number of Number of per Room/ per Room/ Number of Rooms/ Total Land Use Type Residents [1] Employees [2] Persons Served [3] per 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF Number of EDUs Residential 53,395 0 53,395 3.08 1.00 17,323 17,323
Hotel 459 146 532 0.70 0.23 765 173
Commercial / Retail 0 13,554 6,777 1.32 0.43 5,136,492 2,199 Office 0 2,985 1,493 1.75 0.57 851,000 484
Industrial 0 4,113 2,057 0.51 0.16 4,053,085 667
Institutional / Other 0 3,118 1,559 1.56 0.51 996,892 506 Total 53,854 23,916 65,812 NA NA NA 21,351
Projected New DU Calculation
Service Factor (Future Residents and Employees)
Residents per Unit/
Persons Served per Room/ EDUs per Unit/ Number of Units/ Number of Number of Number of Persons Served per per Room/ Number of Rooms/ Total Land Use Type Residents Employees Persons Served 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF [4] Number of EDUs Residential 9,415 0 9,415 3.08 1.00 3,055 3,055
Hotel 19 6 22 0.70 0.23 31 7
Commercial / Retail 0 552 276 1.32 0.43 209,357 90
Office 0 122 61 1.75 0.57 34,686 20
Industrial 0 168 84 0.51 0.16 165,199 27
Institutional / Other 0 127 64 1.56 0.51 40,632 21
Total 9,434 975 9,921 NA NA NA 3,219
Buildout DU Calculation
Service Factor (Future Residents and Employees)
Residents per Unit/
Persons Served per Room/ EDUs per Unit/ Number of Units/ Number of Number of Number of Persons Served per per Room/ Number of Rooms/ Total Land Use Type Residents Employees Persons Served 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF Number of EDUs Residential 62,810 0 62,810 3.08 1.00 20,378 20,378
Hotel 478 152 554 0.70 0.23 796 180
Commercial / Retail 0 14,106 7,053 1.32 0.43 5,345,849 2,288 Office 0 3,107 1,553 1.75 0.57 885,686 504
Industrial 0 4,281 2,140 0.51 0.16 4,218,284 694
Institutional / Other 0 3,245 1,623 1.56 0.51 1,037,524 526 Total 63,288 24,891 75,733 NA NA NA 24,570
[1] Source: California Department of Finance, E-5 City/County Population and Housing Estimates (1/1/24).

Hotel guests based on a 60% occupancy rate for the existing hotel rooms in the City. [2] Source: Nielsen Companies, EmploymentProfiles | Employment by NAICS Codes (2024). [3] Persons served equals residents, plus 50% of employees. [4] For residential, based on the SANDAG Regional Growth Forecast (2020), an annualized growth rate of approximately 0.54% is utilized through 2040.

For non-residential, an annualized growth rate of 0.25% is utilized through 2040.

APPENDIX A-1
EQUIVALENT DWELLING UNIT ("EDU") ASSUMPTIONS - CITY ADMINISTRATION FEE

NATIONAL CITY, CALIFORNIA

Existing DU Calculation
Service Factor (Residents, Employees, and Visitors)
[a] [b] [c]
[d] = [a] +
50% x [b]
+ 5% x [c]
[e] = [d] /[g], or
[e] = [d] / ([g] / 1,000) [f] = [e] / 3.50 [g] [h] = [f] x [g] Persons Served per Unit/ EDUs per Unit/ Number of Units/ Number of Number of Number of Number of per Room/ per Room/ Number of Rooms/ Total Land Use Type Residents [1] Employees [2] Visitors [3] Persons Served [4] per 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF Number of EDUs Residential 53,395 0 0 53,395 3.08 1.00 17,323 17,323
Hotel 459 146 0 532 0.70 0.23 765 173
Commercial / Retail 0 13,554 118,390 12,696 2.47 0.80 5,136,492 4,119 Office 0 2,985 6,597 1,822 2.14 0.69 851,000 591
Industrial 0 4,113 16,375 2,875 0.71 0.23 4,053,085 933 Institutional / Other 0 3,118 242 1,571 1.58 0.51 996,892 510 Total 53,854 23,916 141,604 72,892 NA NA NA 23,648
Projected New DU Calculation
Service Factor (Future Residents, Employees, and Visitor) Residents per Unit/
Persons Served per Room/ EDUs per Unit/ Number of Units/ Number of Number of Number of Number of Persons Served per per Room/ Number of Rooms/ Total Land Use Type Residents Employees Visitors Persons Served 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF [5] Number of EDUs Residential 9,415 0 0 9,415 3.08 1.00 3,055 3,055
Hotel 19 6 0 22 0.70 0.23 31 7
Commercial / Retail 0 552 4,825 517 2.47 0.80 209,357 168 Office 0 122 269 74 2.14 0.69 34,686 24
Industrial 0 168 667 117 0.71 0.23 165,199 38
Institutional / Other 0 127 10 64 1.58 0.51 40,632 21
Total 9,434 975 5,772 10,210 NA NA NA 3,312
Buildout DU Calculation
Service Factor (Future Residents, Employees, and Visitor) Residents per Unit/
Persons Served per Room/ EDUs per Unit/ Number of Units/ Number of Number of Number of Number of Persons Served per per Room/ Number of Rooms/ Total Land Use Type Residents Employees Visitors Persons Served 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF Number of EDUs Residential 62,810 0 0 62,810 3.08 1.00 20,378 20,378
Hotel 478 152 0 554 0.70 0.23 796 180
Commercial / Retail 0 14,106 123,215 13,214 2.47 0.80 5,345,849 4,287 Office 0 3,107 6,866 1,897 2.14 0.69 885,686 615
Industrial 0 4,281 17,043 2,992 0.71 0.23 4,218,284 971 Institutional / Other 0 3,245 251 1,635 1.58 0.51 1,037,524 530 Total 63,288 24,891 147,375 83,102 NA NA NA 26,961
[1] Source: California Department of Finance, E-5 City/County Population and Housing Estimates (1/1/24).

Hotel guests based on a 60% occupancy rate for the existing hotel rooms in the City. [2] Source: Nielsen Companies, EmploymentProfiles | Employment by NAICS Codes (2024). [3] Based on Average Daily Trips (excluding employee trips), as published by the Institute of Transportation Engineers, 10th Edition. [4] Persons served equals residents, plus 50% of employees, plus 5% of visitors. [5] For residential, based on the SANDAG Regional Growth Forecast (2020), an annualized growth rate of approximately 0.54% is utilized through 2040.

For non-residential, an annualized growth rate of 0.25% is utilized through 2040.

APPENDIX A-1
EQUIVALENT DWELLING UNIT ("EDU") ASSUMPTIONS - POLICE/ FIRE FEE

NATIONAL CITY, CALIFORNIA

Existing DU Calculation
Service Factor (Residents and Employees)
[a] [b] = [a] [c] = [b] /[e] [d] = [c] / 3.50 [e] [f] = [d] x [e] Persons Served per Unit/ EDUs per Unit/ Number of Units/ Number of Number of per Room/ per Room/ Number of Rooms/ Total Land Use Type Residents [1] Persons Served [2] per 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF Number of EDUs Residential 53,395 53,395 3.52 1.00 17,323 17,323
Total 53,395 53,395 NA NA NA 17,323
Projected New DU Calculation
Service Factor (Future Residents and Employees)
Residents per Unit/
Persons Served per Room/ EDUs per Unit/ Number of Units/ Number of Number of Persons Served per per Room/ Number of Rooms/ Total Land Use Type Residents Persons Served 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF [3] Number of EDUs Residential 9,415 18,359 3.52 1.00 3,055 3,055
Total 9,415 18,359 NA NA NA 3,055
Buildout DU Calculation
Service Factor (Future Residents and Employees)
Residents per Unit/
Persons Served per Room/ EDUs per Unit/ Number of Units/ Number of Number of Persons Served per per Room/ Number of Rooms/ Total Land Use Type Residents Persons Served 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF Number of EDUs Residential 62,810 71,754 3.52 1.00 20,378 20,378
Total 62,810 71,754 NA NA NA 20,378
[1] Source: California Department of Finance, E-5 City/County Population and Housing Estimates (1/1/24). [2] Persons served equals residents only, and excludes non-residential land uses. [3] For residential, based on the SANDAG Regional Growth Forecast (2020), an annualized growth rate of approximately 0.54% is utilized through 2040.

For non-residential, an annualized growth rate of 0.25% is utilized through 2040.

APPENDIX A-1
EQUIVALENT DWELLING UNIT ("EDU") ASSUMPTIONS - LIBRARY / PARKS FEE

NATIONAL CITY, CALIFORNIA

Existing Equivalent Benefit Units (Transportation)
[a] [b] [c]
[d] = [a] x [c], or
[d] = [b] / 1,000 x [c]
Average Daily Trips (ADTs)
per Unit/ Total
Number of Units/ Number of per Room/ Daily Trips
Land Use Type Number of Rooms/ Non-Res. SF [1] per 1,000 Non-Res. SF [2] EBUs Residential [1] 17,323 0 8.24 142,742
Hotel [2] 765 0 4.24 3,244
Commercial / Retail 0 5,136,492 25.69 131,944
Office 0 851,000 11.26 9,582
Industrial 0 4,053,085 5.06 20,488
Institutional / Other 0 996,892 3.37 3,360
Total 18,088 11,037,469 NA 311,359
Projected New Equivalent Benefit Units (Transportation) Average Daily Trips (ADTs)
per Unit/ Total
Number of Units/ Number of per Room/ Daily Trips
Land Use Type Number of Rooms [3] Non-Res. SF [3] per 1,000 Non-Res. SF EBUs Residential 3,055 0 8.24 25,170
Hotel 31 0 4.24 132
Commercial / Retail 0 209,357 25.69 5,378
Office 0 34,686 11.26 391
Industrial 0 165,199 5.06 835
Institutional / Other 0 40,632 3.37 137
Total 3,086 449,874 NA 32,043
Buildout Equivalent Benefit Units (Transportation)
Average Daily Trips (ADTs)
per Unit/ Total
Number of Units/ Number of per Room/ Daily Trips
Land Use Type Number of Rooms/ Non-Res. SF per 1,000 Non-Res. SF EBUs Residential [1] 20,378 0 8.24 167,911
Hotel [2] 796 0 4.24 3,376
Commercial / Retail 0 5,345,849 25.69 137,322
Office 0 885,686 11.26 9,973
Industrial 0 4,218,284 5.06 21,323
Institutional / Other 0 1,037,524 3.37 3,496
Total 21,174 11,487,343 NA 343,402
[1] Source: Nielsen Companies, EmploymentProfiles | Employment by NAICS Codes (2024). [2] Based on Average Daily Trips (excluding employee trips), as published by the Institute of Transportation Engineers, 10th Edition. [3] For residential, based on the SANDAG Regional Growth Forecast (2020), an annualized growth rate of approximately 0.54% is utilized through 2040.

For non-residential, an annualized growth rate of 0.25% is utilized through 2040.

APPENDIX A-1
EQUIVALENT BENEFIT UNITS ("EBU") ASSUMPTIONS - MULTI-MODAL TRANSPORTATION FEE

NATIONAL CITY, CALIFORNIA

Existing DU Calculation
Service Factor (Residents and Employees)
[a] [b]
[c] = [a] +
50% x [b]
[d] = [c] /[f], or
[d] = [c] / ([f] / 1,000) [e] = [d] / 3.50 [f] [g] = [e] x [f] Persons Served per Unit/ EDUs per Unit/ Number of Units/ Number of Number of Number of per Room/ per Room/ Number of Rooms/ Total Land Use Type Residents [1] Employees [2] Persons Served [3] per 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF Number of EDUs Residential 53,395 0 53,395 3.08 1.00 17,323 17,323
Hotel 459 146 532 0.70 0.23 765 173
Commercial / Retail 0 13,554 6,777 1.32 0.43 5,136,492 2,199 Office 0 2,985 1,493 1.75 0.57 851,000 484
Industrial 0 4,113 2,057 0.51 0.16 4,053,085 667
Institutional / Other 0 3,118 1,559 1.56 0.51 996,892 506 Total 53,854 23,916 65,812 NA NA NA 21,351
Projected New DU Calculation
Service Factor (Future Residents and Employees)
Residents per Unit/
Persons Served per Room/ EDUs per Unit/ Number of Units/ Number of Number of Number of Persons Served per per Room/ Number of Rooms/ Total Land Use Type Residents Employees Persons Served 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF [4] Number of EDUs Residential 9,415 0 9,415 3.08 1.00 3,055 3,055
Hotel 19 6 22 0.70 0.23 31 7
Commercial / Retail 0 552 276 1.32 0.43 209,357 90
Office 0 122 61 1.75 0.57 34,686 20
Industrial 0 168 84 0.51 0.16 165,199 27
Institutional / Other 0 127 64 1.56 0.51 40,632 21
Total 9,434 975 9,921 NA NA NA 3,219
Buildout DU Calculation
Service Factor (Future Residents and Employees)
Residents per Unit/
Persons Served per Room/ EDUs per Unit/ Number of Units/ Number of Number of Number of Persons Served per per Room/ Number of Rooms/ Total Land Use Type Residents Employees Persons Served 1,000 Non-Res. SF per 1,000 Non-Res. SF Non-Res. SF Number of EDUs Residential 62,810 0 62,810 3.08 1.00 20,378 20,378
Hotel 478 152 554 0.70 0.23 796 180
Commercial / Retail 0 14,106 7,053 1.32 0.43 5,345,849 2,288 Office 0 3,107 1,553 1.75 0.57 885,686 504
Industrial 0 4,281 2,140 0.51 0.16 4,218,284 694
Institutional / Other 0 3,245 1,623 1.56 0.51 1,037,524 526 Total 63,288 24,891 75,733 NA NA NA 24,570
[1] Source: California Department of Finance, E-5 City/County Population and Housing Estimates (1/1/24).

Hotel guests based on a 60% occupancy rate for the existing hotel rooms in the City. [2] Source: Nielsen Companies, EmploymentProfiles | Employment by NAICS Codes (2024). [3] Persons served equals residents, plus 50% of employees. [4] For residential, based on the SANDAG Regional Growth Forecast (2020), an annualized growth rate of approximately 0.54% is utilized through 2040.

For non-residential, an annualized growth rate of 0.25% is utilized through 2040.

APPENDIX A-1
EQUIVALENT DWELLING UNIT ("EDU") ASSUMPTIONS - CITY ADMINISTRATION FEE

NATIONAL CITY, CALIFORNIA

I. Inventory of Existing Police Facilities
Facility Facility Units Quantity
Buildings Square Feet 63,015
Land Acres 1.55
Vehicles Vehicle 57
Equipment Integrated Unit 1
II Existing Facility Standard [a] [b] [c] = [a] / ([b] / 1,000) Existing Facility Units per
Facility Type [3] Facility Units Quantity EDUs 1,000 EDUs Buildings Square Feet 63,015 23,648 2665
Land Acres 2 23,648 0.066
Vehicles Vehicle 57 23,648 2.410
Equipment Integrated Unit 1 23,648 0.042
III. Future Facility Standard [a] [b] [c] = [a] x [b]
Facility Units Future Facilities Units Funded
Facility Type Facility Units per 1,000 EDUs EDUs by New Development Buildings Square Feet 2665 3,312 8,826
Land Acres 0.066 3,312 0.217
Vehicles Vehicle 2.410 3,312 7.984
Equipment Integrated Unit 0.042 3,312 0.140
IV. Police Summary Cost Data [a] [b] [c] = [a] x [b] [d] = [c] / 3312 Facility Units Funded Total Facility Cost for Cost
Facility Type Facility Units by Future Development Cost Per Unit Future Development per EDU Buildings Square Feet 8,826 $1,038 $9,158,644 $2,765 Land Acres 0.217 $1,185,107 $257,296 $78 Vehicles Vehicle 7.984 $75,649 $603,978 $182 Equipment Integrated Unit 0.140 $5,866,608 $821,732 $248 Offsetting Revenue $188,979 $57
Total $10,652,670 $3,216
V. Police Residential Fee Calculation
Land Type EDUs per Unit No. of Projected Units Total EDUs Residential 1.00 3,055 3,055
[a] 3,055
[b] $3,216
[c] = [a] x [b] $9,823,529
[d] 4,583,381
[e] = [c] / [d] $2.14
VI. Police Non-Residential Fee Calculation
EDU's per Room/ Fee per Room / Rooms / Costs Financed
Land Type 1,000 Non-Res. Sq. Ft. per 1,000 Non-Res Sq. Ft. Non-Res. Sq. Ft. by Fees [a] [b] = [a] x 3216 [c] [d] = ([c] / 1,000) x [b]
Hotel 0.23 $726 31 $22,624
Commercial Retail 0.80 $2,579 209,357 $539,932
Office 0.69 $2,234 34,686 $77,498
Industrial 0.23 $740 165,199 $122,274
Institutional / Other 0.51 $1,644 40,632 $66,812
Total NA NA NA $829,140
VII. Police Fee Calculation Summary
Res. Fee per Sq. Ft./
per Room / Projected Res. Sq. Ft./ Costs Financed
Land Type per 1,000 Non‑Res Sq. Ft. Rooms/Non-Res. Sq. Ft. by Fees Residential $2.14 4,583,381 $9,823,529
Hotel $725.58 31 $22,624
Commercial Retail $2,579.00 209,357 $539,932
Office $2,234.29 34,686 $77,498
Industrial $740.16 165,199 $122,274
Institutional / Other $1,644.31 40,632 $66,812
Total NA NA $10,652,670
Total Fees
Total Residential Sq. Ft.

Total Fee per Residential Sq. Ft.

APPENDIX A-1

NATIONAL CITY, CALIFORNIA

POLICE FACILITIES FEE CALCULATION
Total Residential
Total cost per EDU
Appendix A, Page 1Page 461 of 572
I. Inventory of Fire & Rescue Facilities
Facility Facility Units Quantity
Buildings Square Feet 26,044
Land Acres 2.71
Vehicles Vehicle 17.0
Equipment Integrated Unit 1.0
II. Existing Facility Standard [a] [b] [c] = [a] / ([b] / 1,000) Existing Facility Units per
Facility Type [3] Facility Units Quantity EDUs 1,000 EDUs Buildings Square Feet 26,044 23,648 1,101
Land Acres 2.71 23,648 0.115
Vehicles Vehicle 17 23,648 0.719
Equipment Integrated Unit 1 23,648 0.042
III. Future Facility Standard [a] [b] [c] = [a] x [b]
Facility Units Future Facilities Units Funded
Facility Type Facility Units per 1,000 EDUs EDUs by New Development Buildings Square Feet 1,101 3,312 3,648
Land Acres 0.115 3,312 0.380
Vehicles Vehicle 0.719 3,312 2.381
Equipment Integrated Unit 0.042 3,312 0.140
IV. Fire & Rescue Summary Cost Data [a] [b] [c] = [a] x [b] [d] = [c] / 1101 Facility Units Funded Total Facility Cost for
Facility Type Facility Units by Future Development Cost Per Unit Future Development Cost per EDU Buildings Square Feet 3,648 $1,200 $4,377,559 $1,322 Land Acres 0.380 $1,321,442 $501,603 $151 Vehicles Vehicle 2.381 $442,343 $1,053,297 $318 Equipment Integrated Unit 0.140 $909,881 $127,446 $38 Offsetting Revenue $253,577 $77
Total $5,806,329 $1,753
V. Fire & Rescue Residential Fee Calculation
Land Type EDUs per Unit No. of Projected Units Total EDUs Residential 1.00 3,055 3,055
[a] 3,055
[b] $1,753
[c] = [a] x [b] $5,354,399
[d] 4,583,381
[e] = [c] / [d] $1.17
VI. Police Non-Residential Fee Calculation
EDU's per Room/ Fee per Room / Rooms / Costs Financed
Land Type 1,000 Non-Res. Sq. Ft. per 1,000 Non-Res Sq. Ft. Non-Res. Sq. Ft. by Fees [a] [b] = [a] x 1753 [c] [d] = ([c] / 1,000) x [b]
Hotel 0.23 $395 31 $12,331
Commercial Retail 0.80 $1,406 209,357 $294,295
Office 0.69 $1,218 34,686 $42,241
Industrial 0.23 $403 165,199 $66,647
Institutional / Other 0.51 $896 40,632 $36,416
Total NA NA NA $451,930
VII. Police Fee Calculation Summary
Res. Fee per Sq. Ft./
per Room / Projected Res. Sq. Ft./ Costs Financed
Land Type per 1,000 Non‑Res Sq. Ft. Rooms/Non-Res. Sq. Ft. by Fees Residential $1.17 4,583,381 $5,354,399
Hotel $395 31 $12,331
Commercial Retail $1,406 209,357 $294,295
Office $1,218 34,686 $42,241
Industrial $403 165,199 $66,647
Institutional / Other $896 40,632 $36,416
Total NA NA $5,806,329
Total Fees
Total Residential Sq. Ft.

Total Fee per Residential Sq. Ft.

APPENDIX A-1

NATIONAL CITY, CALIFORNIA

FIRE FACILITIES FEE CALCULATION
Total Residential
Total cost per EDU
Appendix A, Page 1Page 462 of 572
I. Inventory of Existing Library Facilities
Facility Facility Units Quantity
Buildings Square Feet 49,000
Land Acres 1.68
Vehicles Vehicle 0.00
Equipment Integrated Unit 1.00
II. Existing Facility Standard [a] [b] [c] = [a] / ([b] / 1,000) Existing Facility Units per
Facility Type [3] Facility Units Quantity EDUs 1,000 EDUs Buildings Square Feet 49,000 17,323 2829
Land Acres 1.68 17,323 0.097
Vehicles Vehicle 0.00 17,323 0.000
Equipment Integrated Unit 1.00 17,323 0.058
III. Future Facility Standard [a] [b] [c] = [a] x [b]
Facility Units Future Facilities Units Funded
Facility Type Facility Units per 1,000 EDUs EDUs by New Development Buildings Square Feet 2829 3,055 8,640
Land Acres 0.097 3,055 0.296
Vehicles Vehicle 0.000 3,055 -
Equipment Integrated Unit 0.058 3,055 0.176
IV. Library Summary Cost Data [a] [b] [c] = [a] x [b] [d] = [c] / 3055 Facility Units Funded Total Facility Cost for Cost
Facility Type Facility Unitsby Future Development Cost Per Unit Future Development per EDU Buildings Square Feet 8,640 $750 $6,480,222 $2,121 Land Acres 0.296 $1,321,442 $391,462 $128 Vehicles Vehicle - $0 $0 $0 Equipment Integrated Unit 0.176 $4,837,107 $852,939 $279 Offsetting Revenue $202,253 $66
Total $7,522,371 $2,463
V. Library Residential Fee Calculation
Land Type EDUs per Unit No. of Projected Units Total EDUs Residential 1.00 3,055 3,055
[a] 3,055
[b] $2,463
[c] = [a] x [b] $7,522,371
[d] 4,583,381
[e] = [c] / [d] $1.64
VI. Library Fee Calculation Summary
Res. Fee per Sq. Ft./
per Room / Projected Res. Sq. Ft./ Costs Financed
Land Type per 1,000 Non‑Res Sq. Ft. Rooms/Non-Res. Sq. Ft. by Fees Residential $1.64 4,583,381 $7,522,371
Total NA NA $7,522,371
Total Fees
Total Residential Sq. Ft.

Total Fee per Residential Sq. Ft.

APPENDIX A-1

NATIONAL CITY, CALIFORNIA

LIBRARY FACILITIES FEE CALCULATION
Total Residential
Total cost per EDU
Appendix A, Page 1Page 463 of 572
I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
Parks Acres 116.60
II. Existing Facility Standard [a] [b] [c] = [a] / ([b] / 1,000) Existing Facility Units per
Facility Type [3] Facility Units Quantity EDUs 1,000 EDUs Parks Acres 116.60 17,323 6.731
III. Future Facility Standard [a] [b] [c] = [a] x [b]
Facility Units Future Facilities Units Funded
Facility Type Facility Units per 1,000 EDUs EDUs by New Development Parks Acres 6.731 3,055 20.560
IV. Park Summary Cost Data [a] [b] [c] = [a] x [b] [d] = [c] / 3055 Facility Units Funded Total Facility Cost for Cost
Facility Type Facility Units by Future Development Cost Per Unit Future Development per EDU Land Acres 20.560 $328,657 $6,757,318 $2,212 Offsetting Revenue $868,251 $284
Total $5,889,067 $1,928
V. Park Residential Fee Calculation
Land Type EDUs per Unit No. of Projected Units Total EDUs Residential 1.00 3,055 3,055
[a] 3,055
[b] $1,928
[c] = [a] x [b] $5,889,067
[d] 4,583,381
[e] = [c] / [d] $1.28
VI. Park Fee Calculation Summary
Res. Fee per Sq. Ft./
per Room / Projected Res. Sq. Ft./ Costs Financed
Land Type per 1,000 Non‑Res Sq. Ft. Rooms/Non-Res. Sq. Ft. by Fees Residential $1.28 4,583,381 $5,889,067
Total NA NA $5,889,067
Total Fees
Total Residential Sq. Ft.

Total Fee per Residential Sq. Ft.

APPENDIX A-1

NATIONAL CITY, CALIFORNIA

PARKS FACILITIES FEE CALCULATION
Total Residential
Total cost per EDU
Appendix A, Page 1Page 464 of 572
I. Existing EBU Calculation
Trip Generation
Rate per Unit/ Number of Existing Average Daily Trips EBUs Land Use Type per 1,000 Non-Res. S.F. Existing Units Non-Residential S.F. (Per Unit/1,000 SF) [1] Residential 8.24 17,323 142,742
Hotel 4.24 765 3,244
Commercial Retail 25.69 5,136,492 131,944
Office 11.26 851,000 9,582
Industrial 5.06 4,053,085 20,488
Institutional / Other 3.37 996,892 3,360
Total NA NA NA 311,359
II. Future EBU Calculation
Trip Generation
Rate per Unit/ Number of Future Average Daily Trips EBUs Land Use Type per 1,000 Non-Res. S.F. Existing Units Non-Residential S.F. (Per Unit/1,000 SF) Residential 8.24 3,055 25,170
Hotel 4.24 31 132
Commercial Retail 25.69 209,357 5,378
Office 11.26 34,686 391
Industrial 5.06 165,199 835
Institutional / Other 3.37 40,632 137
`` NA NA NA 32,043
III. Proposed Facilities Cost
Facility
Facility Cost
Multi Modal Facilities Cost $37,269,231
Offsetting Revenues $0
Total Facilities Cost $37,269,231

IV. Allocation of Facilities to Existing and New Development (based on Daily Trips) Average Daily Trips Percentage of Facility
Development Trips (EBUs) Cost Allocated Cost
Existing Development 311,359 90.67% $33,791,657
New Development 32,043 9.33% $3,477,573
Total Facilities Cost 343,402 100.00% $37,269,231
V. Allocation of Facilities to New Development (based on New EDUs) Facility Cost Facilities
Projected Allocated to Cost Per
Facility Daily Trips New Development Daily Trip
Multi Model Facilities Cost 32,043 $3,477,573 $109
Total Facilities Cost per Daily Trip 32,043 3,477,573 $109 VI. Transportation Impact Fees and Cost Financed by Fees per Unit/per 1,000 Non-Res. S.F.

Projected Fee per Unit / Fees per 1,000 Cost Financed
Land Use Type Daily Trips per Room Non-Res. S.F. by Impact Fees Residential 8.24 $894 $2,731,688
Hotel 4.24 $460 $14,348
Commercial Retail 25.69 $2,788 $583,658
Office 11.26 $1,222 $42,387
Industrial 5.06 $549 $90,631
Institutional / Other 3.37 $366 $14,861
Initial Allocation to New Development $3,477,573
Total Allocated to Existing Development $33,791,657
Total Facilities Costs $37,269,231
VII. Transportation Residential Fee Calculation
Land Type EDUs per Unit No. of Projected Units Total EDUs Residential 8.24 3,055 25,170
[a] 25,170
[b] $109
[c] = [a] x [b] $2,731,688
[d] 4,583,381
[e] = [c] / [d] $0.60
Total Fees
Total Residential Sq. Ft.

Total Fee per Residential Sq. Ft.

APPENDIX A-1

NATIONAL CITY, CALIFORNIA

MULTI-MODEL TRANSPORTATION FEE CALCULATION
Total Residential
Total cost per EDU

APPENDIX A-1

NATIONAL CITY, CALIFORNIA

MULTI-MODEL TRANSPORTATION FEE CALCULATION
VIII. Transportation Non-Residential Fee Calculation
Res. Fee per Sq. Ft./
Projected per Room / Projected Res. Sq. Ft./ Costs Financed Land Type Daily Trips per 1,000 Non‑Res Sq. Ft. Rooms/Non-Res. Sq. Ft. by Fees [a] [b] = [a] x 109 [c] [d] = ([c] / 1,000) x [b]
Hotel 4.24 $460 31 $14,348
Commercial Retail 25.69 $2,788 209,357 $583,658
Office 11.26 $1,222 34,686 $42,387
Industrial 5.06 $549 165,199 $90,631
Institutional / Other 3.37 $366 40,632 $14,861
Total $745,885
IX. Transportation Fee Calculation Summary
Res. Fee per Sq. Ft./
per Room / Projected Res. Sq. Ft./ Costs Financed
Land Type per 1,000 Non‑Res Sq. Ft. Rooms/Non-Res. Sq. Ft. by Fees Residential $0.60 4,583,381 $2,731,688
Hotel $460 31 $14,348
Commercial Retail $2,788 209,357 $583,658
Office $1,222 34,686 $42,387
Industrial $549 165,199 $90,631
Institutional / Other $366 40,632 $14,861
Total NA NA $3,477,573

Buildings Address (Sq. Ft.) Cost / Sq. Ft. Value
City Hall 1243 National City Blvd 42,878 $863 $36,983,115 Martin Luther King Jr. Comm Ctr (HR, Housing/Section 8) 140 E 12th Street 6,539 $863 $5,640,016 Public Works Operations Building 1726 Wilson Ave 6,385 $863 $5,507,188 Total 55,802 $863 $48,130,318
Land (Acres) Cost / Acre Value
City Hall
1243 National City
Blvd 1.56 $1,321,442 $2,061,449
Martin Luther King Jr. Comm Ctr (HR, Housing/Section 8) 140 E 12th Street 1.15 $1,321,442 $1,519,658 Public Works Operations Building 1726 Wilson Ave 0.88 $1,321,442 $1,162,869 Total 3.59 4,743,977
Equipment & Property Facility Units Cost per Unit Cost
2017 North Star - Trailer-Mounted Pressure Washer - Medium Equipment City Hall $2,500 1965 Cummins - Stationary Generator City Hall $150,000
Dell EMC VM Hosts City Hall 4 $35,000 $140,000
Nimble Enterprise SAN Storage City Hall 2 $93,500 $187,000 Synology Backup Storage City Hall 2 $23,000 $46,000
Palo Alto Firewall City Hall 2 $24,500 $49,000
FortiGate Firewall City Hall 2 $12,100 $24,200
Cisco Network Switches City Hall 20 $4,800 $96,000
FortiGate Network Analyzer City Hall 1 $18,000 $18,000
Cisco Secure Servers (Phone System) City Hall 2 $19,200 $38,400 Copiers City Hall 4 $7,502 $30,008
Printers City Hall 35 $575 $20,125
CellPhones City Hall 81 $420/yr $34,020
Data Center UPS City Hall 1 $39,700 $39,700
Desktop Computers City Hall 97 $1,136 $110,192
Laptops City Hall 85 $1,050 $89,250
Cisco Voice Over IP Phone System City Hall $498,000
Avigilon Camera System City Hall $375,545
Council Chambers Audio Video System City Hall $235,500
Cisco Network Switches MLK Comm Cntr 3 $4,800 $14,400
Desktop Computers MLK Comm Cntr 15 $1,136 $17,040
Laptop/Tablet Computers MLK Comm Cntr 6 $1,050 $6,300
Cell Phones /Sims MLK Comm Cntr 6 $35/month x 12 $2,520 Copier MLK Comm Cntr 2 $7,502 $15,004
Audio Video System MLK Comm Cntr $29,755
Printer MLK Comm Cntr 8 $575 $4,600
Cisco Network Switches PW Ops 4 $4,800 $33,600
Desktop Computers PW Ops 16 $1,136 $18,176
Laptop/Tablet Computers PW Ops 10 $1,050 $10,500
Cell Phones /Sims PW Ops 20 $420 $8,400
Copier PW Ops 1 $7,502 $7,502
Printer PW Ops 5 $575 $2,855
Enterprise Software
Microsoft Office / OS $156,000
Munis ERP Financials $580,000
ArcGIS Mapping $14,000
CityWorks Permitting / Licensing $171,600
Escribe Agenda Management $82,000
Swagit Streaming $27,000
VmWare ESX Virtualization $55,870
Veeam Backup Software $28,165
Total 3,468,727
APPENDIX B-1

NATIONAL CITY, CALIFORNIA

CITY ADMINISTRATION FACILITIES INVENTORY
Appendix B, Page 1

APPENDIX B-1

NATIONAL CITY, CALIFORNIA

CITY ADMINISTRATION FACILITIES INVENTORY
Vehicles
Make Model Type Year Cost Replacement
Toyota Truck Tacoma Light Duty 2023 $28,300 $32,545
Hyundai SUV Kona Light Duty 2020 $39,900 $47,572
Hyundai SUV Kona Light Duty 2020 $39,900 $47,572
Kia SUV Niro Light Duty 2020 $39,800 $47,453
Ford Truck Ranger Light Duty 2023 $37,500 $43,125
Toyota Building Truck Tacoma Light Duty 2020 $23,700 $28,257 Toyota Neighbor Svcs Truck Tacoma Light Duty 2020 $23,700 $28,257 Toyota Neighbor Svcs Truck Tacoma Light Duty 2020 $23,700 $28,257 Toyota Neighbor Svcs Truck Tacoma Light Duty 2020 $23,700 $28,257 Hyundai Sedan Ioniq Light Duty 2019 $41,300 $51,440
Hyundai Sedan Ioniq Light Duty 2019 $41,300 $51,440
Hyundai Sedan Ioniq Light Duty 2019 $41,300 $51,440
Ford Sedan Fusion Light Duty 2018 $35,500 $2,575
Hyundai Sedan Ioniq Light Duty 2019 $41,300 $51,440
Nissan Sedan Leaf Light Duty 2023 $28,200 $2,326
Toyota Truck Tacoma Light Duty 2020 $23,700 $28,257
Toyota Truck Tacoma Light Duty 2020 $23,700 $28,257
Ford Truck Ranger Light Duty 2020 $34,800 $41,491
Ford Truck F-550 Medium Duty 2022 $49,300 $53,105
Kia Sedan Optima Light Duty 2016 $26,000 $34,664
Ford Truck Ranger Light Duty 2004 $18,000 $33,699
Ford Cargo Van Transit Connect Light Duty 2019 $29,600 $36,868 22 $798,297
Appendix B, Page 2

Buildings Address (Sq. Ft.) Unit Cost / Sq. Ft. Value
Police Department Building 1200 National City Blvd. 55,755 $1,100 $61,330,500 Police Warehouse 1430 Hoover Ave 6,760 $600 $4,056,000
Police Substation Plaza Bonita Mall 500 $0
63,015 $65,386,500

Land (Acres) Unit Cost / Acre Value
Police Department Building 1200 National City Blvd. 1.39 $1,321,442 $1,836,804 Police Warehouse 1430 Hoover Ave 0.16 $700 $112
Police Substation Plaza Bonita Mall

1.55 $1,185,107 $1,836,916
Vehicles
Make Model Type Year Cost Replacement
Freightliner - PD Command Command Bus Heavy Duty 2008 $312,000 $517,205 Ford BearCat SWAT Truck F550 Heavy Duty 2012 $360,000 $534,969 Ford Van - Passenger E350 Medium Duty 2012 $30,000 $44,581 Ford Van - Surveillance E350 Medium Duty 2013 $75,000 $111,218 Toyota CSO Truck - Light Duty Tacoma Light Duty 2013 $23,800 $35,293 Nissan - Sedan Maxima Light Duty 2013 $32,600 $48,343
Nissan - Sedan Sentra Light Duty 2013 $19,550 $28,991
Ford K9 Patrol SUV Explorer Medium Duty 2015 $51,700 $71,397 Ford K9 Patrol SUV Explorer Medium Duty 2015 $51,700 $71,397 Nissan - Sedan Altima Light Duty 2015 $24,750 $34,179
Nissan - Sedan Altima Light Duty 2015 $24,750 $34,179
Ford - Sedan Taurus Light Duty 2015 $28,230 $38,985
Nissan CSI Van NV2500 Medium Duty 2016 $31,550 $42,063
Ford Animal Control Truck F250 Medium Duty 2016 $75,000 $99,992 Ford Patrol SUV Explorer Medium Duty 2016 $55,500 $73,994 Ford K9 Patrol SUV Explorer Medium Duty 2016 $56,700 $75,594 Nissan Investigations Truck - Light Duty Frontier Light Duty 2016 $25,150 $33,531 Toyota SUV - Light Duty Highlander Light Duty 2016 $38,575 $51,429 Ford - Sedan Fusion Light Duty 2016 $21,250 $28,331
Ford Patrol SUV Explorer Medium Duty 2017 $56,900 $72,819 Dodge Van - Light Duty Caravan Light Duty 2017 $28,175 $36,058 Nissan - Sedan Maxima Light Duty 2017 $35,100 $44,920
Nissan - Sedan Altima Light Duty 2017 $37,000 $47,351
Nissan - Sedan Altima Light Duty 2017 $37,000 $47,351
Ford Animal Control Truck F250 Medium Duty 2018 $85,000 $108,443 Ford Patrol SUV Explorer Medium Duty 2018 $56,900 $72,593 Nissan - Sedan Altima Light Duty 2018 $37,000 $47,205
Toyota - Sedan Camry Light Duty 2018 $27,000 $34,447
Honda - Sedan Accord Light Duty 2018 $25,200 $32,150
Ford Patrol SUV Explorer Medium Duty 2019 $65,000 $80,959 Toyota SUV - Light Duty Highlander Light Duty 2019 $40,500 $50,444 Chrysler Van - Light Duty Pacifica Light Duty 2019 $43,300 $53,931 Toyota - Sedan Camry Light Duty 2019 $27,000 $33,629
Ford - Sedan Fusion Light Duty 2019 $24,000 $29,893
Ford Transit Van - CNT T350 Medium Duty 2020 $140,000 $166,919 Ford Transit Van - Prisoner T350 Medium Duty 2020 $96,000 $114,459 Ford Traffic Truck F250 Crew Medium Duty 2020 $90,000 $107,305 Ford SWAT Supervisor Truck F250 Crew Medium Duty 2020 $95,000 $113,266 Toyota CSO Truck - Light Duty Tacoma Light Duty 2020 $28,400 $33,861 Toyota - Sedan Camry Light Duty 2020 $27,000 $32,191
Toyota - Sedan Camry Light Duty 2020 $27,000 $32,191
BMW Motorcycle 2020 $32,000 $38,153
Ford Patrol SUV Explorer Medium Duty 2021 $70,000 $77,700 Ford K9 Patrol SUV Explorer Medium Duty 2021 $62,000 $68,820 BMW Motorcycle 2021 $33,000 $36,630
Ford Investigations SUV Explorer Medium Duty 2022 $56,000 $60,322 Ford Investigations Truck - Light Duty F150 Crew Light Duty 2022 $49,500 $53,320 Ford Patrol SUV Explorer Medium Duty 2023 $76,000 $87,400 Ford HOT Truck - Light Duty F150 Crew Light Duty 2023 $130,000 $149,500 Ford Investigations Truck - Light Duty F150 Crew Light Duty 2023 $59,700 $68,655 Ford Investigations Truck - Light Duty F150 Crew Light Duty 2023 $49,500 $56,925 Toyota SUV - Light Duty Highlander Light Duty 2023 $44,200 $50,830 Kia SUV - Light Duty Sorento Light Duty 2024 $38,240 $38,240 Kia SUV - Light Duty Sorento Light Duty 2024 $38,240 $38,240 Toyota SUV - Light Duty Highlander Light Duty 2024 $44,200 $44,200 Harley Davidson Motorcycle 2024 $40,000 $40,000
BMW Motorcycle 2024 $35,000 $35,000
57 $3,323,860 $4,311,991
APPENDIX B-1

NATIONAL CITY, CALIFORNIA

POLICE FACILITIES INVENTORY
Appendix B, Page 3

APPENDIX B-1

NATIONAL CITY, CALIFORNIA

POLICE FACILITIES INVENTORY
Equipment & Property Units Cost per Unit Cost
1993 Kohler - Stationary Generator 1 $150,000
2022 Skywatch - Surveillance Trailer - Heavy Equipment $226,200 2005 Universal - Medium Trailer $75,000
1993 Kohler - Stationary Generator $100,000
Desktop Computers (Dell) 128 1136 $145,408
Laptop (Mobile Data Computers)MDC 108 3980 $429,840
AXON Body Cameras (5yrs) 76 $514,840
Copiers 5 7502 $37,510
Printers 35 575 $20,125
Data Center UPS 1 39700 $39,700
Nimble Enterprise SAN Storage 2 93500 $187,000
Dell EMC VM Hosts 2 35000 $70,000
Cell Phones /Sims 87 $35/month x 12 $36,540
800 MHZ Radios 189 4355 $823,095
Cisco Network Switches 10 4800 $48,000
Software
New World Computer Aided Dispatch (CAD) $1,060,000
Glock Duty Pistols w/Holosun SCS MOS Optic Model 17 MOS 95 $850 $80,750 Glock Admin / Detective Pistol 43X 10 $450 $4,500
Colt Patrol Rifles w /Holosun 510C Optic M 55 $1,900 $104,500 Daniels Defense SWAT Rifiles w/Trijicon MOR Optic DDM4 20 $3,000 $60,000 Accuracy Intl. SWAT Sniper Rifles w/Night Force ATACR Optic 4 $6,000 $24,000 DDM4 AT-LE $0
Remington Less Lethal shotgun w/Vortex Spark Optic 870 40 $1,100 $44,000 Remington shotgun 870 2 $900 $1,800
Defense Tech. 40mm less lethal launchers w/Vorotex Spark Optic 4 $1,550 $6,200 Defense Tech. 40mm multi-launcherlaunchers w/Vorotex Spark Optic 2 $4,500 $9,000 Gas Ram For Deployment 1 $700 $700
Burn Safe for Gas Deployment 1 $900 $900
Pepperball Launchers FTC/FT12 80 $900 $72,000
Tasers X2/X26P 100 $1,600 $160,000
FLIR night scope LS 1 $2,000 $2,000
Thernal Camera TT310B 1 $2,300 $2,300
Night Vision monocle SWAT M914 15 $4,500 $67,500
Dual Bean aiming laser Dball3 20 $2,300 $46,000
Active Shooter vests Paraclete10260 100 $1,200 $120,000 Active Shooter helmets AMP 1 100 $2,500 $250,000
SWAT tactical raid vests 20 $3,200 $64,000
SWAT helmets AMP 1 20 $3,100 $62,000
Munitions Pole Vulcan III 1 $2,300 $2,300
Handheld balistic Shields BR WMX6 3 $4,300 $12,900
Accident /crime scene reconstruction equipment FARO 1 $28,000 $28,000 Laser protection glasses Stingerhawk 100 $150 $15,000
Portable Radios Motorola APX 6000 66 $6,500 $429,000 Mobile Radios Motorola APX 6500 36 $6,500 $234,000
$5,866,608
Appendix B, Page 4

Buildings Address (Sq. Ft.) Unit Cost / Sq. Ft. Value
Fire Station #34 343 East 16th street 19,440 $1,200 $23,328,000 Fire Station #31 2333 Euclid Ave 4,700 $1,200 $5,640,000 Fire Station #33 2005 East 4th street 1904 $1,200 $2,284,800 Fire Administration and Fire Prevention 1243 National City Blvd. 26,044 $31,252,800
Land (Acres) Cost / Acre Value
Fire Station #34 343 East 16th street 1.680 $1,321,442 $2,220,022 Fire Station #31 2333 Euclid Ave 0.360 $1,321,442 $475,719 Fire Station #33 2005 East 4th street 0.670 $1,321,442 $885,366 Fire Administration and Fire Prevention 1243 National City Blvd.

2.71 $3,581,108
Vehicles
Make Model Type Year Cost Replacement
Fire Engine Pierce Arrow XT Heavy Duty 2006 $400,000 $728,002 Chevrolet SUV - Battalion Suburban Medium Duty 2006 $60,000 $109,200 Fire Aerial Pierce Arrow XT Heavy Duty 2009 $950,000 $1,504,904 Fire Engine Pierce Arrow XT Heavy Duty 2011 $515,000 $778,444 Fire Aerial Pierce Arrow XT Heavy Duty 2016 $1,034,000 $1,378,554 Ford Truck - Fire Squad F550 Heavy Duty 2016 $170,000 $226,648 Toyota Truck - Fire Inspection Tacoma Light Duty 2016 $40,000 $53,329 Toyota Truck - Fire Inspection Tacoma Light Duty 2016 $40,000 $53,329 Chevrolet SUV - Battalion Suburban Medium Duty 2017 $90,000 $115,179 Nissan Sedan - Fire Inspection Altima Sedan 2018 $24,850 $31,704 Fire Engine Pierce Arrow XT Heavy Duty 2019 $750,000 $934,145 Chevrolet SUV - Chief Tahoe Medium Duty 2021 $50,000 $55,500 Dodge Truck - Fire Squad 5,500 Heavy Duty 2022 $250,000 $269,294 Ford Truck - Battalion F350 Heavy Duty 2022 $130,000 $140,033 Ford Truck - Fire Marshall F150 Crew Medium Duty 2022 $85,000 $91,560 Ford Truck - Fire Crew F350 Crew Heavy Duty 2023 $70,000 $70,001 Fire Engine Pierce Arrow XT Heavy Duty 2024 $980,000 $980,000 13 17 $7,519,826
Equipment & Property Units Cost per Unit Cost
1990 Clark - Forklift - Medium Equipment $75,000
2012 Fabique - Medium Trailer $7,500
2004 Kohler Stationary Generator - FS34 $125,000
2004 Kohler Stationary Generator - FS31 $90,000
2017 Generac - Stationary Generator - FS33 $35,000
Cisco Network Switches 7 4800 $33,600
Desktop Computers 23 1136 $26,128
Laptop/Tablet Computers 10 1050 $10,500
Cell Phones /Sims 87 $35/month x 12 $36,540
800 MHZ Radios 97 4,355 $422,435
RCS Radio Service / yr 97 342 $33,174
Copier 2 7,502 $15,004
$909,881
APPENDIX B-1

NATIONAL CITY, CALIFORNIA

FIRE FACILITIES INVENTORY

Buildings Address (Sq. Ft.) Unit Cost / Sq. Ft. Value
Library 1401 National City Blvd 49,000 $750 $36,750,000 49,000 $750 $36,750,000
Land (Acres) Unit Cost / Acre Value
Library 1401 National City Blvd 1.68 $1,321,442 $2,220,022

1.68 $1,321,442 $2,220,022
Vehicles Existing/Proposed Quantity Cost Total Cost
$0
Equipment Quantity Cost per unit Total Cost
Network Switches 8 4800 $38,400
Public Computers 35 1136 $39,670
Staff Desktop Computers 53 1136 $60,208
Laptop/Tablet Computers 10 1050 $10,500
Cell Phones /Sims 2 420 $840
Copier 5 7502 $37,510
Printer 8 575 $4,600
Dell Server 2 5600 $11,200
Meeting Room Audio Video $23,250
Books (volumes) 188,434 20 $3,768,680
Makerspace equipment 20 502.3 $10,046
Meeting Room AV 1 395000 $395,000
Hanging system 1 7734.24 $7,734
Lounge Seating 15 2233.33 $33,500
PA System 1 20000 $20,000
Microfilm Reader/Printer 1 1500 $1,500
Kyocera Copier 1 1300 $1,300
Book carts 40 459.99 $18,400
Self-check kiosks 2 11542.96 $23,086
RFID gates & workstation shileded 3 10560.98 $31,683
Mis Equipment and property $300,000
$4,837,107

LIBRARY FACILITIES INVENTORY

NATIONAL CITY, CALIFORNIA
APPENDIX B-1
Appendix B, Page 6

Land for Sports Park Address (Acres) Cost / Acre Value
Las Palmas Park Newell St and E 22nd St 18.5 $0
Kimball Park 12th Street and D Ave 23 $0
El Toyon Park 4th Street and U Ave 23.2 $0
Paradise Creek Park Hoover Ave and W 19th 5.6 $0
Butterfly Park Palm Ave and E 22nd St 2.1 $0
Stein Family Farm 1808 F Ave 1.4 $0
National City Golf Course 1439 Sweetwater Rd 42.8 $0
Total 116.60 $0
City built out, only park improvements not using park acre So no land cost per acr used
Vehicles
Make Model Type Year Cost Replacement
Freightliner FL70 Tree Truck - Heavy Duty 2001 $93,000 $193,627 Ford F550 Truck - Medium Duty 2022 $49,300 $53,105
Ford F250 Truck - Medium Duty 2020 $32,700 $38,987
Ford F150 EXT Truck - Light Duty 2020 $27,000 $32,191
Ford F150 Truck - Light Duty 2020 $27,000 $32,191
Toyota Tacoma Truck - Light Duty 2020 $23,500 $28,019
Toyota Tacoma Truck - Light Duty 2020 $23,500 $28,019
Toyota Tacoma Truck - Light Duty 2020 $23,500 $28,019
Ford Ranger Truck - Light Duty 2020 $34,800 $41,491
20 9 $334,300 $475,649
Buildings Address Square Feet Cost Total Cost
ARTS Center 200 E 12th St 17,634 $500 $8,817,000
Camacho Recreation Center 1810 E 22nd Street 12,738 $400 $5,095,200 Casa de Salud Recreation Center 1408 E Harding Ave 7,060 $400 $2,824,000 Morgan Towers Nutrition Center 1415 D Ave 6,670 $400 $2,668,000 Martin Luther King Jr. Comm Ctr (excluding Admin)140 E 12th Street 12,391 $400 $4,956,400 Boys and Girls Club 1430 D Ave 25,860 $400 $10,344,000
Historic Kimball House 923 A Ave 2,030 $400 $812,000
Historic Railcar Depot 922 W 23rd Street 4,550 $400 $1,820,000 $37,336,600
APPENDIX B-1

NATIONAL CITY, CALIFORNIA

PARKS FACILTIES INVENTORY
Appendix B, Page 7

APPENDIX B-1

NATIONAL CITY, CALIFORNIA

PARKS FACILTIES INVENTORY
Additional Equipment & Property Units Cost per Unit Costs 2009 Case 570MXT - Tractor - Heavy Equipment $98,500
1991 Century Stage - Heavy Trailer $53,200
2000 Areator - Medium Equipment $5,000
2009 Kubota Tractor 4400 - Medium Equipment $36,600
2018 Toro Mower - Medium Equipment $68,800
2020 Vermeer BC1000XL - Chipper - Medium Equipment $43,000 1987 RPM - Medium Trailer $1,000
2002 Aros - Medium Trailer $3,000
2005 Pace - Medium Trailer $7,500
2000 EX-Mark Metro - Mower- Light Equipment $2,500
2012 Vermeer SC292 Root Grinder - Light Equipment $23,000 2017 Cushman 800 - Golf Cart - Light Equipment $6,800
2017 Cushman 800 - Goft Cart - Light Equipment $6,800
2020 Vermeer RTX130 Trencher - Light Equipment $9,500
2024 Toro Mower- Light Equipment $30,000
2024 EX-Mark Lazer-Z Mower - Light Equipment $27,000
1987 RPM - Light Trailer $1,300
2023 Aluma 7712H-S-TG - Light Trailer $4,610
Cisco Network Switches 4 4,800 $33,600
Desktop Computers 3 1,136 $3,408
Laptop/Tablet Computers 1 1,050 $1,050
Cell Phones /Sims 2 420 $840
Printer 3 575 $1,725
Cisco Network Switches 1 4,800 $4,800
Desktop Computers 10 1,136 $17,040
Laptop/Tablet Computers 6 1,050 $6,300
Cell Phones /Sims 7 $35/month x 12 $2,940
Audio Video System $6,500
Printer 5 575 $2,875
Aquatics facility?
Total #REF! $509,188
Appendix B, Page 8

Facility Name Total Cost Policy Background
Bicycle
18th Street Bicycle Boulevard 18th StreetPalm Avenue to Rachael Avenue Class III $1,319,675 Ciy's Bicycle Master Plan Highland Avenue Bike Lanes Highland Avenue 30th Street to SR 54 exit ramp Class II $386,909 Ciy's Bicycle Master Plan F Avenue Bicycle Boulevard- F Avenue- 18th Street to 28th StreetClass III Boulevard $1,728,774 Ciy's Bicycle Master Plan - 26th Street- D Avenue to 18th Street
8th Street Complete Street Improvements- 8th Street- Harbison Avenue to Paradise Valley Road (Class III)Class II $533,106 Ciy's Bicycle Master Plan - Paradise Valley Road- 8th Street east to City Boundary (Class II)Class III Route D Avenue Bicycle BoulevardD AvenueDivision Street to 18th StreetClass III Boulevard $1,491,233 Ciy's Bicycle Master Plan Division Street Cycle TrackDivision StreetLauren Avenue to Euclid AvenueClass IV $2,248,624 Ciy's Bicycle Master Plan 30th Street Cycle Track30th StreetHoover Avenue to Highland AvenueClass IV $2,314,760 Ciy's Bicycle Master Plan 16th Street Bicycle Corridor16th StreetHighland Avenue to Harbison AvenueClass III Route $361,379 Ciy's Bicycle Master Plan Granger Avenue Bicycle Corridor- Lanoitan Avenue- 16th Street to 24th StreetClass III Route $247,520 Ciy's Bicycle Master Plan - Granger Avenue- 18th Street to 24th Street
- 24th Street- Euclid Avenue to Granger Avenue
24th Street Complete Street Improvements24th StreetHoover Avenue to Highland Avenue (Class II) and Highland Avenue to N Avenue (Class IIIClass II $1,186,008 Ciy's Bicycle Master Plan Class III Boulevard
Las Palmas Bicycle Corridor- Roselawn Street- L Avenue to N AvenueClass III Route $131,186 Ciy's Bicycle Master Plan - N Avenue- Roselawn Street to 22nd Street
- 22nd Street- N Avenue to Palm Avenue
- Palm Avenue- 22nd Street to 18th Street
Hoover Avenue Cycle TrackHoover Avenue22nd Street to 33rd StreetClass IV $2,513,168 Ciy's Bicycle Master Plan 22nd Street Cycle Track22nd StreetWilson Avenue to D AvenueClass IV $1,884,876 Ciy's Bicycle Master Plan Harbison Avenue Bicycle Corridor- Harbison Avenue4th Street to 16th Street, Earle DriveClass III Route $252,470 Ciy's Bicycle Master Plan - Earle Drive
Olive Avenue Bike LanesOlive Avenue8th Street to Plumas StreetClass II $277,781 Ciy's Bicycle Master Plan El Toyon-Las Palmas Bicycle Corridor Multi-Use PathRecreational trailBeta Street to 4th StreetClass I $617,027 Ciy's Bicycle Master Plan D Avenue Bike LanesD Avenue30th Street to southern terminusClass II $228,177 Ciy's Bicycle Master Plan Civic Center Drive Complete Street Improvements Civic Center DriveTidelands Avenue to Wilson AvenueClass III Route $64,355 Ciy's Bicycle Master Plan Highland Avenue Complete Street ImprovementsHighland AvenueDelta Street to 2nd Street (Class II) and 2nd Street to 4th Street (Class III)Class II $429,008 Ciy's Bicycle Master Plan Class III Route
19th Street Bike Lanes19th StreetKiss Street to McKinley AvenueClass II $426,592 Ciy's Bicycle Master Plan B Avenue Bicycle Boulevard/Advisory Bicycle LanesB Avenue1st Street to 4th StreetClass III Boulevard $250,738 Ciy's Bicycle Master Plan Bay Marina Drive Bike LanesBay Marina DriveTidelands Avenue to Marina WayClass II $248,019 Ciy's Bicycle Master Plan Roosevelt Avenue North Bike LanesRoosevelt Avenue8th Street to 12th StreetClass II $248,019 Ciy's Bicycle Master Plan 16th Street Bike Lanes16th StreetWilson Avenue to National City BoulevardClass II $307,543 Ciy's Bicycle Master Plan Roosevelt Avenue South Bike LanesRoosevelt AvenueCivic Center Drive to 16th StreetClass II $188,494 Ciy's Bicycle Master Plan 21st Street Bicycle Corridor21st StreetF Avenue to L AvenueClass III Route $94,058 Ciy's Bicycle Master Plan Bicycle Total $19,979,499
ADA Transition Plan
Pedestrian Ramps (130 Ramps @ $10,000 each) FY 2019-2024 $130,000 ADA Transition Plan Sidewalks ( 10,089.21 SF @ $20 SF) FY 219-2024 $201,784 ADA Transition Plan Pedestrian Ramps (1300 Ramps @ $10,000 each) FY 2025- 2029 $13,300,000 ADA Transition Plan Sidewalks (182,897.38 SF @ $20 SF) FY 2025-2029 $3,657,947 ADA Transition Plan ADA Transition Plan Total $17,289,732
Subtotel $37,269,231
Offsetting Revenue $0.00
Total $37,269,231
APPENDIX B-1

NATIONAL CITY, CALIFORNIA

TRANSPORTATION FACILTIES LIST
(Planned Projects)
Appendix B, Page 9

APPENDIX C-1

NATIONAL CITY, CALIFORNIA

LAND INVENTORY
City Property Location County Last Sale Acres Total Price Price/Acre National City 16th St San Diego 4/10/2025 1.71 $1,350,000 $789,474 National City 3600 Paradise Valley Rd San Diego 2/27/2025 7.94 $2,925,000 $368,388 National City 2039 E 8th St San Diego 9/26/2022 0.98 $1,150,000 $1,173,469 National City 945 N Ave San Diego 5/2/2022 1.57 $2,150,000 $1,369,427 National City 3202 Hoover Ave San Diego 12/22/2021 3.10 $9,077,202 $2,928,130 National City 1320 Highland Ave San Diego 9/2/2021 1.61 $2,860,000 $1,776,398 National City 0 Civic Center Dr San Diego 12/15/2020 0.52 $1,100,000 $2,115,385 National City 2010 Haffley Ave San Diego 10/20/2020 1.71 $800,000 $467,836 National City 1520 E Plaza Blvd San Diego 2/25/2020 1.06 $680,000 $641,509 National City 2501 E 18th St San Diego 2/7/2020 0.34 $627,000 $1,860,534 National City 2504 Highland Ave San Diego 1/10/2020 0.39 $350,000 $897,436 National City E 9th St San Diego 4/19/2019 0.30 $750,000 $2,464,673 National City 32nd St San Diego 3/29/2019 1.61 $525,000 $326,087 Average $1,321,442

If Adopted January 20, 2026
Effective April 20, 2026
Land Use
City
Administration Police Fire Library Parks Multi-Modal Total Residential (Per Square Foot) 1.78$ 2.14 $ 1.17 $ 1.64 $ 1.28 $ 0.60 $ 8.61 $ Hotel (Per Room) 604.00$ 726.00 $ 395.00 $ - $ - $ 460.00$ 2,185.00$ Commercial/Retail (Per 1,000 Sq. Ft.) 1,146.00$ 2,579.00 $ 1,406.00 $ - $ - $ 2,788.00$ 7,919.00 $ Office (Per 1,000 Sq. Ft.) 1,523.00$ 2,234.00 $ 1,218.00 $ - $ - $ 1,222.00$ 6,197.00 $ Industrial (Per 1,000 Sq. Ft.) 441.00$ 740.00 $ 403.00 $ - $ - $ 549.00$ 2,133.00$ Institutional/Other (Per 1,000 Sq. Ft.) 1,358.00$ 1,644.00 $ 896.00 $ - $ - $ 366.00$ 4,264.00$ Notes:

1. Residential fees are for single-family residences, multi-family residences, and mobile homes and are per square foot to comply with California AB 602.

2. Hotel fees are per room

3. Non-Residential fees are per 1,000 square feet

EXCLUDING THE TRANSPORTATION DEVELOPMENT IMPACT FEE

DEVELOPMENT IMPACT FEE SCHEDULE

CITY OF NATIONAL CITY

AGENDA REPORT

Department: City Clerk's Office
Prepared by: Shelley Chapel, MMC, City Clerk
Meeting Date: Tuesday, January 20, 2026
Approved by: Alejandro Hernandez, Acting City Manager

SUBJECT:

Appointment of City Councilmember to Regional Board for San Diego County Water Authority

RECOMMENDATION:

Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, Confirming the Mayoral Appointment of Member of the City Council to the San Diego County Water Authority Board of Directors.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

As per California Government Code Section 40605: In general law cities where the office of Mayor is an elective official, the Mayor, with the approval of the City Council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute.

The San Diego County Water Authority (SDCWA) Primary Representative position is a mayoral appointment and does not include an alternate. Effective January 12, 2026, the Mayor accepted the resignation of Councilmember Yamane from the SDCWA Board due to conflicts with her professional schedule. As a result, the position is currently vacant.

The proposed appointment would fill the remainder of the unexpired term ending March 8, 2026, and, upon expiration, continue into a new six-year term ending March 8, 2032, or until the end of the Councilmember’s term if the Councilmember is not re-elected.

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

EXHIBIT:

Exhibit A - Resolution

RESOLUTION NO. 2026 -

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

CONFIRMING THE MAYORAL APPOINTMENT OF MEMBER OF THE CITY COUNCIL TO THE SAN DIEGO COUNTY WATER AUTHORITY BOARD OF DIRECTORS.

WHEREAS, California Government Code section 40605 requires that the Mayor appoint, with concurrence of the City Council, City Councilmembers to various regional board, commission, and committee assignments; and

WHEREAS, section 45-6 of the County Water Authority Act, Chapter 45 of the Appendix to the Water Code of the State of California, similarly requires that the Mayor, with consent and approval of the City Council, appoint a primary member to the San Diego County Water Authority Board of Directors; and

WHEREAS, on December 10, 2024, the City Council adopted Resolution No. 24 -175 appointing Councilmember Yamane to the San Diego County Water Authority Board of Directors (the “SDCWA Board”); and

WHEREAS, the SDCWA Board appointed position does not have an alternate; and WHEREAS, effective January 12, 2026, the Mayor accepted the resignation of Councilmember Yamane from the SDCWA Board, creating a vacancy that needs to be filled by another Councilmember; and
WHEREAS, the Mayor has appointed __________________________ to fill the vacant position for the remainder of the existing two-year term, which expires March 8, 2026, and, upon expiration, continue into a new six -year term ending March 8, 2032, or until the end of the Councilmember’s term if the Councilmember is not re-elected.

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 concurs with and approves the Mayoral appointment of ______________________ to the San Diego County Water Authority Board of Directors for the remainder of the term ending March 8, 2026 and continuing into a new six-year term ending March 8, 2032.

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.

Section 3: That the City Clerk is directed to provide a certified copy of this Resolution in its entirety to the San Diego County Water Authority Board of Directors.

PASSED and ADOPTED this 20th day of January, 2026.

Ron Morrison, Mayor
ATTEST:

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

Richard E. Romero, Acting City Attorney Page 482 of 572

AGENDA REPORT

Department: City Clerk's Office
Prepared by: Shelley Chapel, City Clerk
Meeting Date: Tuesday, January 20, 2026
Approved by: Alejandro Hernandez, Acting City Manager

SUBJECT:

Updating City Council Policies

RECOMMENDATION:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, Amending City Council Policy Nos. 101,107, 109, 121, 203, 204, 206, 402, 502, 703, 707, and 904.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

As per City 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 proposed amendments for consideration to the following Council Policies: Nos. 101, 107, 109, 121, 203, 204, 206, 402, 502, 703, 707, and 904.

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 an historical reference of changes made over time.

This item was continued from the November 18, 2025, City Council meeting to provide City Councilmembers additional time to submit feedback to the City Clerk. The attached document reflects the feedback received, together with staff recommendations.

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

EXHIBITS:

Exhibit A - Policy No. 101 – City Council Policy Manual Exhibit B – Policy No. 107 – Appointments to BCCs – Redline Exhibit C – Policy No. 109 – Reimbursement Expenses Incurred Official Duties Exhibit D – Policy No. 121 – Mayor and City Councilmember Office Budget 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. 402 – Procedures and Requirements for Development Agreements Exhibit I - Policy No. 502 – Public Improvements or Professional Service Contract Changes Exhibit J – Policy No. 703 – CFCs – Eliminate this Policy Exhibit K – Policy No. 707 - Alcohol Beverage License Application and Review Process Exhibit L – Policy No. 904 – Housing Loan Subordination Policy

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: August 15, 2023
January 20, 2026
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, distribution 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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: August 15, 2023
January 20, 2026
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 bringing 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)

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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.

D.

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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 16, 2021
January 20, 2026
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)
November 16, 2021 (Resolution No. 2021-178)

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties
Purpose
Government Code Sections 53232.2, 53232.3, and 53232.4, enacted pursuant to AB 1234, require the governing body of a local agency to adopt a written policy addressing reimbursement for travel and training expenses incurred in the performance of official duties . The City Council deems it desirab le to adopt a uniform policy applicable to City employees City employees, Bboard, Commission, or Committee and commission members, members of the City Council and other elected officials, governing reimbursement for such expenses.

The purpose of this administrative policy is to establish uniform policies and procedures concerning expenses incurred by members of the City Council, Bboard, Commission, or commission committee members, and City employees while traveling or attending events on City business.

Policy
A City Council member, elected official, Bboard, Commission, or Committee or commission member or City employee who is required to travel in the performance of their dutie s or to attend an authorized meeting, conference, or seminar which is of direct benefit to the City shall be reimbursed for reasonable expenses incurred, including transportation, meals, lodging and other incidental expenses directly related to such official City business.

Expenses specifically disallowed for reimbursement include purcha se of personal use itemsuse items, alcoholic beverages, and entertainment (including in-room movies).

All requests for City-related travel must be reviewed/approved by the Purchasing Review Committee ("PRC") prior to making any travel commitments or an arrangements. Estimated cost information must be sent to the Depa1tm ent of Finance / Purchasing Division. Upon approval by the PRC, travel plans may be m ade. PRC approval numbers must be noted on expense reports and invoices submitted for payment or reimbursement.

Existing City purchasing po licies and procedures must be followed when obtaining cost estimates estin1ates, and making arrangements associated with travel. See Municipal Code, Chapter 2.60 regarding purchasing policies and procedures.

A. Transportation.

The following modes of transportation may be allowed for the purpose of traveling on City business:

1. Air Travel. Air travel shall be autho1ized authorized and reimbursed at the lowest fare class offered by the airline. Other than the lowest possible fare class may be authorized when bona fide , business related , scheduling restrictions do not permit use of the lowest possible fare. Individuals opting for a higher fare class for

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties
their personal convenience sha ll be required to pay the difference between the lowest fare class and the option selected.

The individual, or authorized designee, shall attempt to book air travel as to take advantage of discounts offered for purchasing flight tickets in advance of departure i.e., 14 or 21 days, and take advantage of non-refundable ticket fares where practical.

Receipts for air passage must be retained for submission with the expense report.

2. Personal Vehicle. With specific approv al from the depart ment director or the City Manager, personal vehicles may be used for out-of-town travel.

Reimbursement shall be based on actual m ileage used for the official travel. Any mileage used for personal purposes or otherwise not directly related to official City business shall be deducted from total miles traveled to arrive at the net reimbursable mileage. Reimbursement shall be at the prevailing IRS standard mileage rate.

When use of a personal vehicle is authorized, individuals shall adequately account for their use of the personal vehicle on a daily basis on the Travel Expense Report.

Total reimbursable Totareimbursable transportation expense through use of a personal vehicle shall in no case exceed caseexceed the allowable expense of transportation by air, when transportation by air is available to such destination.

Individuals receiving compensation in lieu of an auto allowance shall be eligible for mileage reimbursement for travel beyond the county limits.

3. City-owned Vehicle. Use of City–owned vehicle shall be authorized when this mode of transportation can be demonstrated as the most economical means available. For determining advisability of usage, individuals shall be supplied with estimated cost of travel via a City-owned vehicle by Public Works upon request. Use of a city-owned vehicle shall not be authorized when the estimated cost exceeds the authorized cost of air travel and associated expenses (i.e. taxis and shuttles).

When use of a City-owned vehicle is authorized, individuals shall adequately account for their use of the City-owned vehicle on a daily basis in the Travel Expense Report.

Individuals shall be charged at the prevailing IRS standard mileage rate for every mile of personal use of the City-owned vehicle. The cost of personal use of a City-owned vehicle shall vehicle shall be deducted from the total allowable travel expenses.

Individuals should contact the Public Works Equipment Maintenance Supervisor immediately for direction should the City-owned vehicle become inoperable or otherwise unsafe to drive. If the Equipment Maint enance Supervisor authorizes repairs requiring

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties
an out of pocketout-of-pocket payment, all receipts for such repairs must be retained and forwarded to Public Works for approval prior to reimbursement. Anyone that is unable to pay for the cost of emergency repairs shall notify his/her supervisor and the Public Works Department Immediately to make other arrangements.

Individuals using a city-owned vehicle outside of No1mal normal business hours must be sure to have the Equipment Maintenance Supervisor’s after-hours telephone number in case an emergency occurs outside of normal business hours.

4. Rail. Travel by rail may be authorized when the cost of the rail transportation and other associated expenses (i.e., buses, shuttle s, taxis, hotel stays, meals, etc.) is less than or equal to the cost, including associat ed expenses, of air or automobile (personal or City- owned vehicle) travel.

B. Lodging.

1. General provisions. Reimbursement will be made for the cost of lodging required to conduct the assigned City business. Dated receipts and meeting and travel schedule s must be retained for submission with the Travel Expense Report.

Lodging will be allowed for the night prior to the commencement of the meeting if the time set for the strut start of the meeting requires the individual to leave home prior to 6:00 a.m. of the day of the meeting. Lodging will be allowed for the night following the meeting if the individual could not have ar rived home prior to 12:00 midnight following the meeting.

Lodging in connection with separate, consecut ive meetings or conferences shall be permitted if it is less costly than returning to the city for the nights between the meetings.

In instances where an individual has the option to travel by air and the individual opted to travel by car, reimbursement for lodging shall be allowed on the same basis as if the individual traveled by air.

2. Rate of Reimbursement. Lodging reimbursement shall be based on the standard room rate charged at the headquarters hotel for the conference or the hotel most proximate to the site of the meeting. In the event the individual occupies a more expensive room accommodation (e.g., a suite), s/he will be reimbursed at the standard room rate.

C. Meals

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties
Allowable meals include breakfast, lunch, and/or dinner meeting the criteria established below.

Reimbursement for meals shall be allowable when travel on official business reasonably requires an overnight stay or when the purchase of a meal(s) is a required component of the conference, meeting, or training. Reimbursement shall be on the basis of actual cost when the meal(s) is a component of the conference, meeting or training with proper documentation.

All other meals will be reimbursed, up to a maximum allowance not to exceed the daily meal allowance established by the U.S. Department of General Services Administration (GSA) for breakfast, lunch, and dinner for the location of the travel. For information regarding the current GSA standard daily meal allowance rate, please contact the Finance Director.

Itemized receipts from the dining establishment must be retained for submission with the expense report. Other forms of documentation or receipts that are not itemized may be accepted at the discretion of the City Manager or designee.

In claiming reimbursement, time of commencem ent and termination of travel need to be accounted for. Reimbursement for breakfast is not allowed on the day of departure unless the trip starts prior to 7:00 a.m. Reimbursement for dinner is not allowed on the day of return unless the trip ends later than 7:00 p.m.

Reimbursement is not allowed for meals pu rchased in lieu of a meal(s) included in the fee for the conference, meeting or training unless approved by the City Manager or designee.

D. Registration Fees.

Fees charged for registration at a conference or meeting which an individual is authorized to attend are reimbursable. Receipts or other acceptable evidence of the amount of the fees, such as a copy of the conference program/invitation setting forth the fee rates, shall be retained for submission with the claim form.

E. Incidental Expenses.

1. Taxi and Bus Fares. Reimbursement w ill be allowed for taxi, bus fare or other transportation costs when such transportatio n is necessary in the conduct of City business. No receipts need be provided for such expenses, except for individual charges exceeding charges exceeding $10.00. Such expenses shall be itemized on the Travel Expense Report.

2. Communications. Telephone, fax and in ternet charges will be reimbursed

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties
for official calls. Unofficial calls char ged to the hotel bill should be identified and deducted from deducted from the total hotel bill. Individuals that have been issued a City-owned cellular phone, laptop, tablet, or other communication device shall use such devices in the conduct of business whenever feasible.

3. Parking, Garage, and Toll Charges. Parking, garage, and toll expenses will be reimbursed when an automobile is used for transportation. Parking and garage charges will charges will be reimbursed based on the lowest available rate. Valet and preferred or VIP parking/garage rates shall not be allo wable unless there is no other option at or within a reasonable a reasonable proximity to the travel destination.

4. Airport Parking. Expenses for parking a Ci ty or personal vehicle at the airport are reimbursable based on receipts. However, airport parking expenses shall be limited to the rates for long-term parking when travel requires parking in excess of 24 hours. When an airport shuttle is used in lieu of persona l vehicle, the cost will be reimbursed a s well.

5. Tips, Gratuities, and Services Fees. Cu stomary tips of up to 15 percent will be permitted be permitted on reimbursable items. Tips sh all be itemized on the claim form.

6. Miscellaneous. All items of expense not included in any of the other categories but which nonetheless can be clearly identified as incidental to the undertaking of city business shall also be allowed reimbursement. Receipts for these items must be submitted. Examples of such expenses are duplicating expenses and the cost of publications of value to the city being distributed at conferences or meetings.

F. POST Expenses.

Expenditures in training Police Department personnel under the POST Program shall be authorized and reimbursed by the City in accor dance with established POST guidelines. In case of conflict between the POST guidelines and this policy, the POST guidelines shall prevail but only in the case of expenditures properly reimbursable under the POST Reimbursement Program.

Should the POST reimbursement be insufficient to cover the actual cost of meals and/or lodging, the City will pay the cost of the di fference provided all other travel and meeting expense guidelines outlined in this policy are followed.

G. Per Diem and Cash Advance.

It is encouraged that individuals use their personal money or credit cards to finance trips then

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties
claim reimbursement upon return.

If, in the judgment of a department director, it is determined an employee is unable to finance the trip and be reimbursed upon his/her return, the department director may authorize advance payment for the estimated cost of meals. The amount of the advance payment shall be equal to the GSA per diem for breakfast, lunch, and dinner for each required meal, based on the duration of the travel consistent with the guidelines established by this policy. Upon return, the employee shall provide receipts for all meals and return any excess funds.

Typically, travel/training is for a duration of one week or less. On occasion, however, extended travel may be necessary, (e.g., adv anced training or education for sworn Police personnel). For travel exceeding fourteen (14) days, a per diem not exceeding the GSA per diem for breakfast, lunch, and dinner may be provided prior to the departure date; however, a document issued by the training institution indicating attendance or completion of the course by the individual must be submitted to the Department of Finance within three (3) working days upon return.

The department director may authorize payment of a maximum of $200 to the individual for travel expenses. An advance in excess of $200 must have the approval of the City Manager or designee. Approval of cash advance does not constitute approval for expenditure of the amount so advanced. All ac tual expenditures must be justified and approved based on limits and allowances set by this policy.

H. Direct Payment of Expenses by City Check Required, Where Possible.

Notwithstanding the permissibility of reimbursement for t he travel expenses included in this policy, where possible and feasible, travel expenses must be paid in advance by City check directly to the vendors or organizations providing goods or services.

Procedures

A. Reimbursement of Business Travel Expenses.

The individual shall submit a signed Trav el Expense Report to the department director after completion of travel. Such report shall show the details of official business expenses incurred and should be accompanied by supporting documents required under this policy. The department director shall review the report for compliance with this policy and affix their signature to signify approval. The Travel Expense Report must be forwarded to the Department of Finance within three (3) working days upon return.

City Council members and members of boards and commission shall submit the Travel

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties
Expense Report to the City Manager for approval.

B. Air.

Allowance for air travel will be actual roun d trip via the lowest possible fare. Travel Expense Reports will be accompanied by air passage receipts when filed.

C. Personal Vehicle.

Individuals shall account for use of their vehicle on a daily basis through use of a Travel Expense Report, which is to be submitted when filing a claim

D. City-owned Vehicle.

Authorized personal use of a City vehicle will be accounted for on a Travel Expense Report, which will be submitted when filing for reimbursement. Individuals will be charged the prevailing IRS standard mileage rate for each mile, and shall be deducted from the total allowable travel expenses.

Emergency repair receipts must be submitted to Public Works for approval prior to reimbursement.

E. Lodging.

Receipts indicating date, accompanied by meeting and travel schedules much be submitted with the Travel Expense Report when filing a claim.

F. Meals

All meal receipts will be submitted with the Travel Expense Report. Receipts must be detailed and itemized, showing exactly what was purchased (not just credit card receipts).

G. Registration Fees.

Receipts, or other acceptable evidence of the amount paid, must be submitted with the Travel Expense Report.

H. Incidental Expenses.

Incidental expenses (except for alcohol, entertainment, and items for personal use) shall be itemized on the Travel Expense Report, and receipts shall be provided when appropriate and possible.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties
I. Per Diem Request.

Approved requests for travel advances (submitted on a Request for Warrant Form - see Administrative Policy 03.06) shall be submitted to the Department of Finance at least ten (10) working days prior to departure for travel. Except when the schedule of an employee approved to attend training may prevent secure delivery of a travel advance prior to his/her the departure, funds will be released no earlier than three (3) working days prior to the departure date. In such a case, the travel advance payment may be released up to ten (10) working days prior to the departure date, provided an approved travel advance request has been submitted to the Department of Finance at least fifteen (15) working days prior to the departure date.

The Department of Finance shall deduct from the total expenses claimed, any expense item found to be inconsistent with this policy, and shall furnish the individual with an itemized list of items disallowed. Any amount due the indivi dual shall be paid within ten (10) working days from receipt of the Travel Expense Report by the Department of Finance.

Alternative Proof of Payment for Training Expenses.

A. Individuals periodically request alternative proof of payment methods for reimbursable training expenses (i.e., registrat ion/tuition fees) advanced, when receipts or cancelled checks are not available.

B. As an exception, only when receipts are impractical to obtain, the following may be used in place of receipts or cancelled checks for reimbursement purposes:

1. course announcement specifying the amount of fees, and

2. a document issued by the training institution indicating attendance or completion of the course by the individual.

Use of City Credit Card for Travel Purposes.

City staff members occasionally attend job-related training and conferences, upon approval of the PRC. Job-related training is often required by state mandates. In order to make airline and hotel reservations, a credit card number must be provided to guarantee the reservations.

Prior to use, any individual wishing to use a City-issued credit card, must read and adhere to the City's Credit Card Policy (Administrative Policy 03.14).

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: June 20,
2017January 20, 2026
ADOPTED: September 19, 2006
POLICY # 109
TITLE: Reimbursement for Expenses Incurred in the Performance of Official Duties

Per Administrative Policy 03.14, credit card s may never be used to circumvent established competitive purchasing procedures, or dollar limits established by the City’s

Municipal Code, City Ordinances, or Purchasing Division procedures. Credit cards shall only be used to pay for PRC-authorized travel and training expenses. Individuals may not use City credit cards for personal expenses even if the intent is to reimburse the City later. See Administrative Policy 03.14 for complete rules and details.

Summary

This Policy cannot cover every issue, exception, or contingency that may arise in obtaining reimbursement for travel and training expenses incurred in the performance of official of official duties, and in the use of City credit cards.

Individuals are expected to exercise good judgment and show proper regard for economy when traveling in conjunction with official City business. Any expense for which an individual requests reimbursement should directly and manifestly relate to the conduct of City business and, in the event of an audit, should leave no doubt that such expenditure was pre-approved by the PRC, and is, in fact, reasonable and necessary in the conduct of City business.

Accordingly, the basic standard that should always prevail is to use common sense and good judgment in the use and stewardship of City resources.

This Policy shall supersede all previously-adopted policies and procedures pertaining to reimbursement for travel and training expenses and to the use of City credit cards, including Administrative Policies 03.03, 03.04, 03.05 and 03.14 of the City Administrative Manual. This Policy satisfies the requirements of Government Code Sections 53232.2 and 53232.3.

Related Policy References
Government Code Sections: 53232.2, 53232.3, 53232.4
Assembly Bill 1234
City Administrative Manual Policies 03.03, 03.04, 03.05, 03.14 Municipal Code, Chapter 2.60

Forms:

Travel Expense Report: available from the Department of Finance or the City's Intranet site.

Credit Cardholder Use Agreement: ava ilable from the Department of Finance

Prior Policy Amendments
September 19, 2006 (Resolution No. 2006-199)
October 8, 2013 (Resolution No. 2013-147)
October 18, 2016 (Resolution No. 2016-168)
June 20, 2017 (Resolution No. 2017-117)

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: January 20, 2026

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

TITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED: January 20, 2026

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.

TITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED: January 20, 2026

* 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.

TITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED: January 20, 2026

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 placed. 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 sh irts 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.

TITLE: Mayor and City Councilmembers Office Budget POLICY: 121

ADOPTED: June 4, 2024 AMENDED: January 20, 2026

a. Violations of this se ction 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.

Related Policy References
None

Prior Policy Amendments
September 17, 2019 (Adopted with Budget)
October 15, 2024 (Resolution No. 2024-117)

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AMENDED: November 19, 2024
January 20, 2026
ADOPTED: October 23, 1990
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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 f ollowing 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 In vestment 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 pr ogram are to preserve principal, provide sufficient liquidity, and manage investment risks.

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

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

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

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

IV. PRUDENCE, INDEMNIFICATION, AND ETHICS

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

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

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

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

V. DELEGATION OF AUTHORITY

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

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responsibility for the cash management of City funds is hereby delegated to the Director of Finance and/or Financial Services Officer.

The Director of Finance or designee will be responsible for all transactions undertaken and will establish a system of procedures and contr ols 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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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 qualif ied public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

VII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVE TRANSACTIONS

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

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

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

VIII. AUTHORIZED AND SUITABLE INVESTMENTS

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

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

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

b. No more than 5% per issuer.

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c. No more than 30% of the total portfolio may be invested in municipal bonds.

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

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

4. Banker’s acceptances, provided that:

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

b. The maturity does not exceed 180 days; and

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

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

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

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

6. Certificate of Deposit Placement Service (CDARS)

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

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

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

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

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“A” or higher by at least two nationally recognized statistical rating organizations; and/or have short term debt obligations rated “A1” or higher, or the equivalent, by at least two nationally recognized statistical rating organizations;

b. The maturity does not exceed 5 years; and

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

8. Commercial paper, provided that:

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

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

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

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

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

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

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

10. Local government investment pools.

a. San Diego County Investment Pool

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

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

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

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

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

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

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

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

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

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

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

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

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

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

14. Supranationals, provided that:

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

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

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

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

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

IX. PORTFOLIO RISK MANAGEMENT

A. The following are prohibited investment vehicles and practices:

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

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

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

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

5. Purchasing or selling securities on margin is prohibited.

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

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

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

B. Mitigating credit risk in the portfolio

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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 dow ngraded 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, including variable rate securities, securities with principal pay-downs prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

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

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

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

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

X. INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION)

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

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

XI. PROCEDURES AND INTERNAL CONTROLS

A. Procedures : The Director of Finance 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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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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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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 19, 2024
January 20, 2026
ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
operating expenses.

Mutual fund. An entity which pools the funds of investo rs 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. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling,

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: November 19, 2024
January 20, 2026
ADOPTED: October 23, 1990
POLICY #203
TITLE: Investments
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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: October 17, 2023
January 20, 2026
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-kin d 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 import ant to process donations in such a way so as to distinguish between donations made to the Ci ty, versus those made to 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 consis tent 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 acceptab le 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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: October 17, 2023
January 20, 2026
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 co mmunity. The appearance of traditional commercial advertising or product endorse ments 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)

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: October 17, 2023
January 20, 2026
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 th e 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 here by 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 DONOR hereby expressly waives and releases all rights of ownership to the work of ar t, including those under Civil Service Code Section 988. The DONOR, his/her agents, heirs, successors an d 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:_____________

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: October 17, 2023
January 20, 2026
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 th e 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.

As a condition of the granting of permission by the Ci ty 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 pe rsonal injury, death or property damage, or bo th, 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, ag ents 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 a ll 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 _______________

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
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 paramet ers 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 is suance is consistent with the entity’s debt management policy.

II. SCOPE

The guidelines established by this Poli cy will govern the issuanc e 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;
 maintain 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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
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 appropri ate option. and For capital improvement needs, the City Mmanager 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 the C apital Improvement Prog ram. 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 st ructuring 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 C ity’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 ea ch 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;

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
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 economical, 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 iss uance, 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- issuance 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 comple te a debt issuance, including, but not limited to, bond counsel, disclosure counsel, underwriter, municipal advisor, trustee, pricing consultant, and/or arbitrage analyst.

Typically, the Director of Finance, the Ci ty 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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
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 financi ng alternatives, including, but not limited to, bonds, loans, state bond pools, and grants. T he City also has an impact fee program whereby new development pays its fair share f or the increased capital costs that result from new construction. Although impact fee pay ments are restricted to specific projects or types of projects, the use of these pay ments, when permitted, can be an important source of financing for certain capital projects.

Cash Funding - The City may fund capi tal 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 imbal ances, interim financing pending the issuance of bonds, or long-term financin g 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 Credit - 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 and state law, including, but not limited to, general obli gation bonds, certificates of participation, revenue bonds, land-secured (assessment and special tax) bonds, refunding bonds, and other obligations (see below for details).

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
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 di rect leases (typically for equipment).

When the City finances acquisition or co nstruction of capital improvements or equipment with a lease financing, the City ag rees 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 la ws, 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 situ ations, the City Council is authorized to

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
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 rese rve 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 th e 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 an d 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 structur ing 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 unantic ipated external factors make payments on the debt in the early years prohibitive;
 such structuring is beneficial to t he 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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
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 circum stances 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 re serve 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 ca ll 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 (cal l premium). Because the cost of call options can vary depending on market conditi ons, an evaluation of factors will be conducted in connection with each issuance. The City, in consultation with the underwriter

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management
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 percent 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 f unds 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 competitiv e 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 unde rwriting 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 negotia ted 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 variableꞏarable rate transaction; an unusually large issue; or in a highly volatile or congested market where flexib ility as to bond sale timing is important.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
POLICY #206
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 ad visor 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 provi des 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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
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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 ꞏ;  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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management
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 Direct or 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 repo1t report to the CDIAC for any issue of debt for which it

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management
has submitted a repm1 report of final sale on or after January 21, 2017. The annual report shall comply with the requirements 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 all 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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
POLICY #206
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 shall arrange, as necessary, for disclosure training sessions conducted by the City's disclosure counsel. Such training sessions shall include education on the "Initial Disclosure Requirements and "Continuing Disclosure" sections of thi s
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 regulatory authority over the City 's compliance 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 spec ific 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,

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
POLICY #206
TITLE: Debt Management
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,

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
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TITLE: Debt Management
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.

Indenture: 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 enhanc ement, 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 representatives from investment banking firms, dealer bank representatives, and public representatives, is entrusted with the responsibility

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
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TITLE: Debt Management
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 maturi ties' 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 offering s of municipal securities, (ii) underwriters to obtain continuing disclosure agreements from issuer s 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 .

Reserve 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 issued 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.

Tax 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 limited to perform ing certain enforceable obligations. The California Legislature has enacted a number of laws which establish alternative 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 rev enues within a fiscal year. TRANs allow the municipality to manage the period of cash shor tfalls 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 slightly 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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
ADOPTED: August 15, 2017
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TITLE: Debt Management
Yield: the net rate of return, as a percentage, received by an investor on an investment. Yield calculations on a fixed inco me 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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements Purpose
To adopt regulations establishing procedures and requirements for consideration of development agreements.

Policy
Under a development agreement, both the City and the developer commit themselves to proceed with a development in accordance with the terms of the agreement. The city may agree to process further applications in accordance with the City's building regulations and planning and zoning ordinances, regulations, and standards in effect at the time of the agreement, and not to subject the development to changes in those ordinances, regulations and standards for a specified time.

In return, the developer may agree to construct specific improvements, provide public facilities and services, pay development impact fees, develop according to a specified time schedule or make other commitments that the City might otherwise have no authority to require a developer to perform. A development agreement is enforceable despite any changes to the General Plan, a specific plan, zoning, subdivision, or building regulations.

The development agreement may provide that the developer shall be subject to future changes in development impact fees. Any fees received or costs recovered by the City shall comply with Government Code Section 66006.

A development agreement is distinguishable from a “disposition and development agreement" entered into between a developer and a redevelopment agency, wherein the agency typically participates financially in the project in some way. The commitment made by a developer under a development agreement may be different in kind and scope than the exactions imposed by a city under the Mitigation Fee Act (Government Code Section 66000, et. seq.), which authorizes a city to impose impact fees on a development project involving the issuance of a permit for construction, but not a permit to operate such fees are collected for the purpose of defraying the cost of public facilities related to the development project.

A. Requirements for Applications and Agreements

A.1 Forms and Information

a. The City Attorney shal1 shall prescribe the form for each application and notice required under this Policy for the preparation and implementation of development agreements.

b. The City Manager, or designee, may require an applicant to submit such information and supporting data as deemed necessary to process the application.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements

A.2 Fees
The City Council may include in the City's Fee Schedule the fees and charges imposed for the filing and processing of each application and document required under this Policy.

A.3 Qualification as an Applicant
Only a qualified applicant may file an applicat ion to enter into a development agreement with the City. A qualified applicant is a person who has a legal or equitable interest in the real property that is the subject of th e agreement. "Applicant" includes an authorized agent of the person who has such an intere st. The City Manager, or designee, may require an applicant to submit proof of his or her interest in the real property and of the authority of the agent to act for the applicant. Before the application is processed, the City Attorney shall determine the sufficiency of the applicant's interest in the real property to enter into the agreement.

A.4 Form and Contents of Development Agreement
In applying for a development agreement, a de veloper may submit a form of agreement prepared by the developer. Whether prepared by the City or the developer, the agreement shall specify the following:

a. The duration of the agreement;

b. The permitted uses of the real property;

c. The density or intensity of use;

d. The maximum height and size of proposed structures;

e. Provisions for reservation or dedication of land for public purposes;

f. The nature and timing of construction of improvements;

g. The date by which construction shall commence;

h. The date by which construction of the development and each phase of the development shall commence;

i. Other commitments by the developer in cluding, but not limited to, an agreement to construct specific improvements, prov ide public facilities and services, pay development impact fees, or make other commitments that the City requires; j. A commitment by the City to process t he developer's application in accordance

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements with the City's building regulatio ns and planning and zoning ordinances, regulations, and standards in effect at the time the agreement is entered into, and not to subject the development to changes in such ordinances, regulations, and standards for a specified period of time; and

k. For phased developments, and developments of long duration, the City and the developer may agree that the period of ti me for which the development will not be subject to changes in the City's building, planning, and zoning ordinances and regulations will be for a specified time that is less than the term of the agreement.

l. Other conditions, terms, restricti ons, and requirements provided they do not prevent the development of the real property for the uses and to the density or intensity of development set forth in the agreement.

A.5 Review of Applications; S ubmission to Planning Commission.

The City Manager, or designee, shall review the application and shall reject it if it is inaccurate or incomplete for processing. If City staff finds the application is complete and contains the information necessary to co mplete the development agreement, he or she shall accept it for filing. When both the application and agreement are determined by the City to be complete, the City Manager, or designee, shall submit the agreement to the Secretary of the Planning Commission, who shall place the agreement on a Commission agenda for a public hearing to consider the agr eement for approval. At the time the City Manager, or designee, submits the agreement to the Secretary of the Planning Commission, City Attorney shall submit with the agreement a report indicating whether or not
the agreement would be consistent with the General Plan and any applicable specific plan.

A.6 Hearing by City Council
After the development agreement is consi dered by the Planning Commission, the City Manager, or designee, shall cause to have it placed on a City Council agenda to have it considered for approval by the Council after public hearing. The City Attorney shall submit with the agreement a report indicating whether or not the agreement would be consistent with the General Plan and any applicable specific plan.

A.7 Concurrent Processing
A development agreement may be processed concurrently with other applications for development for the same property.

A.8 Other Parties
In addition to the City and the developer, any federal, state, or local government agency may

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements be included as a party to the development agreement under the authority of the Joint exercise of Powers Act (Government Code Section 6500 et seq.) or other authority.

B. Notices and Hearings

B.l Notice of Intention
The City Clerk shall give notice of the int ention to consider adoption of a development agreement at least ten days before the public hearings of the Planning Commission and the City Council. The notice shall be gi ven as provided in Section 65091 of the Government Code.

B.2 Form of Notice
The form of Notice of Intention to consider adoption of a development agreement shall contain:

a. The time and place of the hearing;

b. A general explanation of the matter to be considered, including a general description of the area affected; and

c. Other information required by specific prov isions of this Policy or that the City Manager, or designee, considers necessary or desirable.

B.3 Manner of Notice
Notice of the intention to consider adoption of a development agreement shall be given as provided in Government Code Section 65091.

B.4 Failure to Receive Notice
The failure of any person or entity to receive notice shall not affect the authority of the City to enter into a development agreement , or affect the validity of development agreement.

B.5 Rules Governing Conduct of Public Hearings
A public hearing at which a development agreement is considered shall be conducted as nearly as possible in accordance with the procedural standard adopted under Government Code Section 65804 for the con duct of zoning hearings. Each person interested in the matter shall be given an opportunity to be heard. The developer has the burden of proof at the public hearing.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements C. Standard of Review, Findings, and Decision

C. l Recommendation by Planning Commission
After the public hearing is held by the Planning Commission, the Commission shall adopt a resolution making its recommendation to the City Council as to whether the development agreement should be approved. The resolution shall set forth the reasons for the Commission's recommendation, including findings setting forth the Commission's determinations regarding the following:

a. Whether the development agreement is consistent with the objectives, policies, land uses, and programs specified in the General Plan and any applicable specific plan;

b. Whether the development agreement is compatible with the uses and regulations for the zone in which the property is located;

c. Whether the development agreement is in conformity with the public convenience, general welfare, and good land use practice;

d. Whether the development agreement w ill not be detrimental to the health, safety, and general welfare;

e. For a development agreement that is to be entered into in connection with a subdivision, as defined in Government Code Section 66473. whether the agreement provides that any tentative map will comply with the provisions of that section.

f. Whether the development agreement offers to the City Substantial benefit in exchange for the vested right benefit granted to the developer.

C.2 Decision by City Council

a. After receipt of the recommendation of the Planning Commission, the City Council shall hold a public hearing. The Council may accept, disapprove, or modify the recommendation of the Planning Commission. The Council may, but is not required to, refer matters not previously considered by the Planning Commission during its hearing back to the Planning Commission for report and recommendation. The Planning Commiss ion shall consider at a public meeting all matters referred back to it by the City Council and may, but is not required to, hold a public hearing on such matters.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements b. The City Council may not approve the development agreement unless it finds that the agreement is in compliance with the standards set forth in Section C.l.

c. The decision whether to enter into a development agreement is within the sole discretion of the City Council.

C.3 Approval of Development Agreement
If the City Council approves the development agreement, it shall do so by the adoption of an ordinance. The City may enter into the agreement after the ordinance approving the agreement takes effect.

D. Amendment and Cancellation of Development Agreement by Mutual Consent

D.1 Initiation of Amendment or Cancellation
A development agreement may be amended, or cancelled in whole or in part, by mutual consent of the parties to the agreement or their successors in interest. Either party may initiate such amendment or cancellation.

D.2 Procedure
a. The procedure for proposing and adopting an amendment to or cancellation in whole or in part of the development agreement is the same as the procedure for entering into an agreement in the first instance, as set forth in Sections “B” and “C” of this Policy.

b. lf the City initiates the proposed amendment to or cancellation in who or in part of the development agreement, it shall first give notice to t developer of its intention to initiate such proce edings at least 30 days advance of the giving of the Notice of Intention to consider t amendment or cancellation required by Section "B".

E. Recordation

E.1 Recordation of Development Agreement, Amendment or Cancellation a. Within 10 days after the City enters into the development agreement, the City Clerk shall have the agreement recorded with the County Recorder. The agreement shall run with the land and inure to the benefit of and bind successors in interest.

b.

If the City and the developer or the developer's successor in interest amend or cancel the agreement as provided in Government Code Section

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements 65868, or if the City terminates or modifies the agreement as provided in Government Code Section 65865.l for failure of the applicant to comply in good faith with the terms or conditions of the agreement, the City Clerk shall cause notice of such action to be recorded with the County Recorder within 10 days.

F. Periodic Review

F.1 Time for Initiation of Review
The City Council shall revi ew the development agreement at a public hearing at least every 12 months from the date the agreement is entered into. The time period before which review may occur may be shortened ei ther by agreement of the City and the developer or by initiation in one or more of the following ways:

a. Recommendation of the City Manager, or designee; or

b. Action of the City Council. The fail ure to conduct a review in any 1 month period does not preclude a later review.

F.2 Notice of Review
The City shall begin the review proceeding by giving notice that the City Council intends to undertake a review of the development agreement.

F.3 Delegation or Referral to Planning Commission
At the time the development agreement is reviewed by the City Council, the Council may:
a. Review the development agreement itself; or

b. Delegate the review to the Planning Commission for a determination or

c. Refer the review to the Planning Co mmission for a recommendation as to the action to be taken by the City Council.

F.4 Procedure
The notice and hearing procedure for review of the development agreement is the same as the procedure for entering into th e agreement in the first instance, as set forth in section “B” of this policy.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements F.5 Public Hearing
The decision-making body shall conduct a public hearing at which the developer must demonstrate good faith compliance with the terms of the agreement. The burden of proof on this issue is with the de veloper. At the time and place set for hearing, the developer shall be given an opportunity to be heard.

F.6 Findings
a. At the conclusion of the public hearing, the decision-making body shall adopt a resolution making findings based on substantial evidence as to whether or not the developer has, for the period of time under review, complied in good faith with the terms and conditions of the development agreement.

b. If the decision-making body finds and determines on the basis of substantial evidence that the developer has complied in good faith with the terms and conditions of the development agreement during the period of time under review, the review for that period is concluded.

c. If the decision-making body finds and de termines on the basis of substantial evidence that the developer has not complied in good faith with the terms and conditions of the development agreement during the period of time under review, it shall in its resolution modify or terminate the agreement. If the agreement is modified, the deci sion-making body may impose those conditions to its action as .it considers necessary to protect the interests of the City. If the decision-making body determines to modify the agreement, it shall do so only in a manner reasonably related to addressing the lack of compliance identified under Subsection (b) of this
Section.

d. If the review 1s conducted by the Planning Commission for a determination the developer or - any interested person may appeal the determination under Subsections (b) and (c) of this Section to the City Council in accordance with the City's procedures for appeals to the City Council.

F.7 Decision of the City Council Final
In all proceedings under Section "F", the decision of the City Council shall be final.

F.8 Costs of Review
The developer shall pay the City's r easonable costs for staff time expended on the annual review.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026

ADOPTED: September 6,
2011October 17, 2023
POLICY #402
TITLE: Procedures and Requirements for Development Agreements G. Judicial Review

G.l Standard of Review
Judicial review of the initial approval by the City of a development agreement shall be by writ of mandate under Code of Civil Pr ocedure Section 1085. Judicial review of a City action taken pursuant to this Policy, other than the initial approval of development agreements, shall be by writ of mandamus under Code of Civil Procedure Section 1094.5. Any action or proceeding to attack, review, set aside, void, or annul any decision of the City to approve or amend a developm ent agreement under this Policy shall be commenced within 90 days of the date of the decision.

Related Policy References
Government Code Sections: 65091, 65804, 65864-65869.5, 66000, 66006, 66473.7 Code of Civil Procedure Sections: 1085, 1094.5

Prior Policy Amendments
September 6, 2011 (Resolution No. 2011-196) Establishing Policy December 10, 2013 (Resolution No. 2013-189)
October 17, 2023 (Resolution No. 2023-149)

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED OR REVISED: October 5, 2021
January 20, 2026
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 for 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 ꞏ 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 agreement with a consultant to make specified changes to the On-Call Consultant Contract. An On-Call 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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED OR REVISED: October 5, 2021
January 20, 2026
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 q uantities that exceed the latest edition of the Green book and/or the special provisions (which ever 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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED OR REVISED: October 5, 2021
January 20, 2026
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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED OR REVISED: October 5, 2021
January 20, 2026
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)

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20,
2026
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 ꞏproducts 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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: July 17, 2018
January 20, 2026
ADOPTED: November 12, 1991
POLICY # 707
TITLE: Alcohol Beverage License Application Review Process and Alcohol Conditional Use Permit Standards
PURPOSE/BACKGROUND:

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 minimiz e 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.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: July 17, 2018
January 20, 2026
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 modific ations 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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: July 17, 2018
January 20, 2026
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 container s 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

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: July 17, 2018
January 20, 2026
ADOPTED: November 12, 1991
POLICY # 707
TITLE: Alcohol Beverage License Application Review Process and Alcohol Conditional Use Permit Standards
and that alcohol sales not exceed food sales shall not apply to tasting rooms.

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 Asse ssment 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

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)

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026
ADOPTED: October 16, 2018
POLICY # 904
TITLE: Housing Loan Subordination Policy
(Homebuyer and Single-Family Rehabilitation Assistance Loans) Background:

The City of National City and Community Development Commission-Housing Authority of the City of National City collectively holds a portfolio of mortgages on real property that have assisted qualified buyers with the purchase of first home or existing homeowners to rehabilitate the property they occupy. From time to time, borrowers may desire to refinance their first mortgage to reduce the interest rate and lower their monthly housing payment. Typically a lender will require that the City subordinate the assistance loan to the new loan secured by the subject property.

This Subordination Policy (“Policy”) is intended to standardize the manner in which subordination requests are submitted and approved by the City. The Policy also delegates the review and approval of subordination agreements for single-family housing assistance loans to City staff and provides for annual reporting of the subordinations made to the City Council.

Purpose:

This Subordination Policy (“Policy”) is intended to standardize the manner in which subordination requests are submitted and approved by the City. The Policy delegates the review and approval of subordination agreements for single-family housing assistance loans to City staff.

Policy
A. Subordination of the City of National City’s loan in favor of a new loan in the amount of the current balance of the original senior loan plus reasonable costs of refinancing is acceptable as long as the purpose of the refinance is to lessen the borrower’s monthly financial obligations (debt service) for housing costs, to reduce both the term and interest rate of a loan when the new total payment (principal, interest, taxes, insurance, and homeowner’s association fees) does not exceed 35% of the borrowers total gross monthly income, or when a senior lien becomes due and payable.

B. No subordination will be approved which provides cash or equity being taken from the property (unless the cash is being used to pay reasonable closing costs or to remediate code violations at the property).

C. The City of National City’s loan must be recorded in the same position as when it was originally recorded.

D. City staff will review the new loan application and underwriter’s summary, estimated buyer’s settlement charges and title report to verify compliance with these criteria prior to execution of a subordination document by City.

E. City staff will submit their review and recommendation to the Community DevelopmentHousing Authorit yand Economic Development Director for final approval or denial of the subordination request.

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026
ADOPTED: October 16, 2018
POLICY # 904
TITLE: Housing Loan Subordination Policy
(Homebuyer and Single-Family Rehabilitation Assistance Loans)

F. Staff will prepare an annual report to the City Council, City Manager, and Director of Finance that provides information on the new mortgage principal balance, rate, and term that the City assistance loan subordinated to.

Procedure:

The new lender will forward a request to the Housing and Economic DevelopmentAuthority Department that will include the following:

 A written request from the lender for a rate and term refinance with the borrower’s authorization to release information form.

 A letter signed by the borrower explaining the purpose of the refinance.

 Copy of all pages of the loan application (1003) signed by the borrower.

 Copy of the Preliminary Title Report.

 Certified copy of the escrow instructions referencing the new lender, showing vesting, and the new loan amount. If no escrow is involved in the transaction, a statement from the new lender is required listing the new loan amount, exact vesting for borrower, and name of the lender exactly as it will appear on the loan documents.

 Copy of the Estimated HUD-1 Settlement Statement

 Pay-off statement from the existing first trust deed lien holder.

 Copy of the lender’s Underwriting Transmittal Summary (1008), clearly showing the loan has been approved, the loan amount, interest rate, term of the loan, and the principal and interest payments. The new first trust deed loan must be a fixed rate loan, fully amortized over the life of the loan.

A non-refundable subordination fee will be charged for every subordination agreement processed.

The lender must include a check made payable to the City of National City for the amount listed in the City’s adopted Fee Schedule$344.00 per the subordination agreement executed by the City. The fee may be subject to change from time to time. Payment of the fee must be included with the submission of the subordination package.

Upon receipt of a complete package, staff will present the request for subordination to the

CITY COUNCIL POLICY

CITY OF NATIONAL CITY

AMENDED: January 20, 2026
ADOPTED: October 16, 2018
POLICY # 904
TITLE: Housing Loan Subordination Policy
(Homebuyer and Single-Family Rehabilitation Assistance Loans) Community Development Director of Housing and Economic DevelopmentAuthority for consideration. If approved, the lender will be notified of any contingencies. The City will draft the subordination agreement(s) based on the information provided by the lender or escrow company.

Related Policy References:

N/A

Prior Policy Amendments:

N/A
October 16, 2018 (Resolution No. 2018-186)

CITY COUNCIL AGENDA ITEM

REQUEST FORM
The City Council Agenda Item Request Form is for members of the City Council to submit written requests to the City Manager's Office for inclusion of an item on a future City Council Meeting Agenda. At the meeting where the initial written request is heard, discussion should be limited to whether the item should be added to an agenda and a date, not the merit of the item.

A majority vote of the City Council is required for the item to be added to a future City Council Meeting Agenda for action.

Requestor: _Councilmember Jose Rodriguez Date Submitted: 01/13/202 Co-Sponsor (Mayor or Councilmember): Councilmember Ditas Yamane Section 1. Proposal Title: OUR FUTURE IS HOMEOWNERSHIP. Create a Home Ownership sub-committee
Section 2. Justification Statement
D What is the need/problem to be address?
Our city has had an unbalanced residency when it comes to homeownership. Approximately 65% renters and 35% homeowners. We would like to address this issue and balance this equation and come up with a program that Homeownership Matters.

D Who is proposed to do the work? (City staff/department, consultant, etc.) We would like to proposed a Sub-Committee (Rodriguez/Yamane) that will coordinate with staff on processes and/or guidelines to get this program going.

D Why is the timing appropriate now?
NOW is the time to address this painful issue of housing, especially, the opportunity to develop homeownership program for our city.

Section 3. Impact Statement
D Estimated staff time (by department, if applicable)
We would gather informational documents from staff to be able to follow processes and guidelines, understand “switches and controls” in helping builders (private and/or public) to expedite the processes and to realize building units for sale.

D Expected costs or budget implications (consultant fees, legal review, etc.)

We will come back with a plan, fees, legalities, etc. once we have gathered and study the process and then seek council approval.

D Related/ongoing projects that may be affected
NONE that we are aware of. We will be exploring private/public partnerships.

Section 4. Urgency
D Not urgent
D Urgent - If urgent, check all that apply and explain:

D Potential financial loss
D Legal implications
D Public safety risks
As housing is a challenge, not just in our city but the nation, we would like to address this issue in our capacity as the local government to help our city in providing for housing but most importantly balance the homeownership equation of our city and continue to promote economic development for our city to thrive.

Section 5. Strategic Alignment
D Explain how this proposal aligns with the City's Strategic Plan or Council priorities.

As we all know, we still need to have our strategic plan moving forward, these efforts are aligned with the seven C’s from the old City’s Strategic Plan, most especially the last two C’s Commitment to our Community to provide for homeownership opportunities.

Section 6. Proposal Type
D Significant project (requires staff analysis, legal opinion, or financial evaluation) We will need staff support for information and processes. Our offices will handle most of the leg work to make this happen. These will all be taken up and a feasibility study will be carefully drafted for council approval. If we are not going to do this now then, when? D Minor amendment/operational adjustment (exempt from full analysis) None, at this time.

Section 7. Certification
I certify that this request complies with the requirements of City Council Policy No. 105.

Signature of Requestor: Councilmember Jose Rodriguez Date: 01/13/2026 _ Signature of Co-Sponsor: Councilmember Ditas Yamane Date: 01/13/2026