Outreach discussions focused on topics including:
Business competitiveness;
Potential impacts on small and large businesses;
Long-term fiscal sustainability;
Public safety and infrastructure service levels;
Homelessness
Business climate considerations;
Accountability and transparency measures associated with potential future revenues. The importance of maintaining public safety, including anti-gang programs, neighborhood police patrols, crime investigation, 911 emergency response, and other services that keep National City safe and desirable for residents, shoppers, employees, and businesses;
During survey and outreach discussions, public safety was a central topic. National City has one of the highest crime rates in the County, and p ublic safety already represents more than 70 percent of the City budget.
We discussed the need to protect the smallest businesses while asking larger businesses to contribute more fairly based on gross receipts, and impact. Several business representatives expressed concerns regarding operational costs, narrow business margins, and the potential impact additional business taxes could have on competitiveness and long -term business sustainability.
We discussed the fact that large industrial a nd commercial businesses can create greater wear and tear on National City streets and roads and require more City services than local small businesses.
Stakeholders emphasized that any future increase in business tax revenues should be accompanied by st rong accountability measures and visible improvements to City services, particularly within commercial and business corridor areas.
As a general measure, funds from a Business License Reform measure could be used to support crime prevention, address homelessness, and clean up blight and vacant spaces in our business areas, helping to attract and retain local businesses to improve our economy . It also requires public disclosure of all spending and independent annual financial audits, to make sure all funds are used effectively, efficiently, and as promised.
The City is currently c onducting a professional, public opinion poll to understand voter perspectives regarding city service priorities, and Business License Reform Measure. Council can expect a full presentation on results at the meeting.
The polling effort evaluated public sentiment related to:
Public safety services;
Street and infrastructure maintenance;
Business fairness and modernization;
Small business protections;
Accountability and oversight provisions; and
Long-term fiscal sustainability challenges facing the City.
The purpose of this agenda item is to provide the City Council with an opportunity to review the findings of the Business License Tax study, stakeholder outreach efforts, and public opinion polling results.
Given the statutory deadlines associated with ballot measure preparation and election administration, the City Council is being asked to provide direction regarding whether to proceed with placing a Business License Reform measure before the voters. If directed to proceed, staff will return with the necessary resolutions and ballot materials required to place the measure on a future ballot. The current proposed ballot measure language is included in Exhibit B, which is subject to modification.
Following the placement of a measure on the ballot, City communications regarding the measure will be limited to factual and impartial information consistent with applicable election laws. The use of public resources for campaign advocacy is prohibited. Public res ources include public funds, staff time, agency facilities, materials and equipment, materials, websites, social media platforms, and other City communication channels.
The City Attorney and City Clerk will work collaboratively to ensure that any information provided to the public regarding the measure is educational, factual, and unbiased, and complies with all applicable legal requirements.
FINANCIAL STATEMENT:
There is no immediate fiscal impact associated with receiving this presentation. If the City Council directs placement of a Business License Tax measure on a future ballot, the City may incur costs associated with election services, legal noticing, and ballot measure preparation.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Balanced Budget and Economic Development
ENVIRONMENTAL REVIEW:
This is not a project under CEQA , and is therefore , not subject to environmental review.
CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
The Agenda Report was posted 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 – Presentation
Exhibit B – Proposed Ballot Measure Language
Exhibit C – Stakeholder Outreach Summary
Exhibit D – Public Opinion Survey
CITY OF NATIONAL CITY
BUSINESS LICENSE TAX
Tax Study Draft
Presented By
Tax Study
Content
1. Registry Analysis – starting slide 5
2. Jurisdictions Comparisons – starting slide 10
a. Basic Overview
b. Detailed Analysis
3. Tax Models – starting slide 15
a. Models
b. Models Comparisons
4. Appendix– starting slide 25
1
Tax Study Purpose
12
1. Assess Performance of the Current Tax Structure
Evaluate how the City’s existing business tax framework is performing in terms of revenue stability, fairness across business types, and long-term sustainability.
2. Benchmark Against Peer Jurisdictions
Compare the City’s approach to similar jurisdictions to understand how it competes regionally and where it may be over- or under-aligned.
3. Identify Opportunities for Improvement
Explore alternative tax structures and rate methodologies to determine whether adjustments could enhance revenue reliability, improve equity, or better reflect the local business environment.
4. Provide a Clear Path Forward for Decision-Making
Present data-driven scenarios and trade-offs to help City Council confidently evaluate whether to maintain the current structure or pursue targeted changes. Ensure any potential direction is grounded in fiscal impact, community considerations, and implementation feasibility.
Purpose of the Tax Study
3
Business License Tax
Registry Review
4
Business License Registry Review
License Rates, Counts, and Tax Basis
Rate Types Count of Business Primary Tax Basis
Residential Rentals 1 to 4 Units 1,551 Flat Fee
Gross Receipts Class 2 1,225 Tiered Gross Receipts
Contractor - Specialty or Subcontractor (Outside) 585 Flat Fee Gross Receipts Class 5 338 Tiered Gross Receipts
Contractor - General (Outside) 323 Flat Fee
Gross Receipts Class 1 322 Tiered Gross Receipts
Gross Receipts Class 6 281 Tiered Gross Receipts
Residential Rentals 5 to 30 Units 174 Flat Fee
Out of Town Vendor 162 Tiered Gross Receipts
Gross Receipts Class 3 156 Tiered Gross Receipts
All Other (12) 363 Flat Fee/Tiered Gross Receipts
Total 5,480
5
Business License Registry Review
Total Share of Tax Revenue Generated by Business Type
Residential Rental & Apartment
Houses
26%
Retail Sales - General
12%
Restaurants
5%
Medical Offices
5%
Service - General
4%
Contractor - Sub (Based Out Of
City)
4%
Contractor - General (Based Out
Of City)
3%
Wholesale Business
3%
Service - Repairs
3%
All Other (93)
35%
6
Business License Registry Review
Top 100 Businesses Compared to all Businesses in the City The top 100 businesses account for 57% of the reported gross receipts and 29% of the total tax assessed.
Top 100
29.17%
All Other
Businesses
70.83%
Top 100 - Percent of
Total Taxes Revenue
Top 100
57.54%
All Other
Businesses
42.46%
Top 100 - Percent of
Total Reported Gross Receipts
7
In general, “Gross Receipts” means
the total amount of revenue
received or accrued by a business
from all activities conducted within
the City, whether received in cash,
credit, or other form of value,
without deduction for costs or
expenses, and limited to the portion
attributable to business activity
within the City.
Types of Revenue
• Sales of goods and services
• Fees
• Rents
• Other compensation
What is Gross Receipts?
8
Jurisdiction Comparison
Basic Overview
9
Jurisdiction Comparison
Demographic and Economic Statistics by Location
Location Population Business Count Business Tax
Revenue
Revenue Per
Capita
Revenue Per
Business
Ordinance
Last Modified Tax Basis Cap Presence?
(Y/N)
Del Mar 3,867 1,846 $276,466 $71.49 $149.76 N/A Gross Receipts N Carlsbad 113,495 7,136 $6,356,809 $56.01 $890.81 1995 Gross Receipts N Oceanside 170,020 9,500 $4,721,430 $27.77 $496.99 2002 Gross Receipts N Vista 98,344 4,555 $2,374,284 $24.14 $521.25 1975 Gross Receipts N San Clemente 62,313 7,700 $1,283,866 $20.60 $166.74 2012 Gross Receipts N Escondido 148,122 6,336 $2,154,732 $14.55 $340.08 1995 Gross Receipts N National City 55,236 5,255 $683,353 $12.37 $130.04 2017 Gross Receipts / Flat Fee Y
El Cajon 102,991 5,866 $849,581 $8.25 $144.83 2013 Per Employee N La Mesa 60,537 3,673 $486,474 $8.04 $132.45 1985 Flat Fee / Per Employee N
Chula Vista 274,333 8,700 $2,017,470 $7.35 $231.89 1995 Flat Fee / Per Employee Y
Based on publicly available 2023 data
10
Jurisdiction Comparison
Detailed Analysis
11
Jurisdictions for
Detailed Analysis
• National City
• Chula Vista
• Oceanside
• Vista
• San Diego
Jurisdiction Selections
12
Detailed Comparison Analysis
Business Scenarios – Estimated Revenue
Business Scenario Business Type Gross
Receipts Employees Other Units National City
Chula Vista
(Per
Employee)
Oceanside
(Gross
Receipts)
Vista
(Gross
Receipts)
San Diego
(Per
Employee)
Single Family Housing
Construction Contractor $45,000 3 $20 $131 $50 $41 $34
Commercial Property Property Rental $75,000 3 10 Units $26 $20 $50 $64 $34 Automotive Dealer Retail $40,000,000 20 $1,720 $352 $20,000 $8,471 $225 Laundry Service Service $1,200,000 8 $371 $196 $600 $601 $34 Dental Office Professional $3,000,000 10 5 Prof. $938 $1,050 $1,500 $1,071 $34 Apartment Complex Property Rental $5,000,000 15 200 Units $5,150 $248 $2,500 $500 $200 Department Store Retail $20,000,000 35 $2,126 $547 $10,000 $4,471 $300 Total $10,351 $2,545 $15,219 $15,219 $861
13
The Models
14
Features
• One gross receipts rate for all businesses.
• Small flat-rate tax.
• Exempt business definition remains unchanged.
Model 1 Single Gross Receipts Rate
Model Evaluation
Pros:
• Easy for businesses to understand.
• Boosts revenue for city services.
• Same rate for all = more equitable.
• Low base rate supports
microenterprises.
Cons:
• Doesn’t adjust for business type or
other local tax contributions.
15
Model 1 Single Gross Receipts Rate
Model Structure
Tax Basis Taxable Gross Receipts
Flat Rate $25 Flat Rate
(Up To $25,000 Gross Receipts)
Gross Receipts Tax + 0.125% Of Gross Receipts
16
Model 1 Single Gross Receipts Rate
Model’s Revenue Impact
Number of Businesses
Total Taxable
Gross Receipts FY2025 Charges
Tax Amount:
0.125% Gross Receipts
5,480 $4.84 Billion $760,000 $6,033,000
Increased Business Tax Revenue $5,273,000
17
Features
• Variable gross receipts rate for businesses based on business type. • Small flat-rate tax.
• Model removes the special or specific categories in the current code in favor of five base categories and an exempt category.
Model 2 Variable Gross Receipts Rate
Model Evaluation
Pros:
• Only five categories = easier to
navigate.
• Boosts revenue potential.
• More equitable: accounts for varying
contributions to revenue base.
• Low base rate supports
microenterprises.
Cons:
• Definitions have the potential to be
too broad.
• Multi-type businesses may need
multiple licenses.
• Potential for perceived favoritism or
penalty in rate design.
18
Model 2 Variable Gross Receipts Rate
Model Structure
Categories* Flat Rate Tax Rates
Contractor
$25 Flat Rate
Up to $25,000 Gross Receipts
0.2% Of Gross Receipts
General/Retail 0.1% Of Gross Receipts
Professional 0.3% Of Gross Receipts
Property Rental 0.3% Of Gross Receipts
Services 0.2% Of Gross Receipts
Exempt $0.00 0% Of Gross Receipts
19
Model 2 Variable Gross Receipts Rate
Model’s Revenue Impact
Business Type
Number of
Businesses
Est. Taxable Gross
Receipts FY2025 Charges
Variable Gross Receipts
Est. Revenue
Contractor 999 $121,000,000 $67,000 $218,000
General/Retail 1,216 $2,664,000,000 $263,000 $2,669,000 Professional 334 $561,000,000 $96,000 $1,668,000
Property Rental 2,058 $862,000,000 $219,000 $2,486,000
Service 837 $634,000,000 $115,000 $1,255,000
Exempt 36 $0 $0 $0
Total 5,480 $4,842,000,000 $760,000 $8,296,000
Increased Business Tax
Revenue $7,536,000
20
Gross Receipts Comparison
Impact of Gross Receipt on a Single Product
21 New Car
Averaging. $60,000
Example 1
Gross Receipt Tax
0.125%
Business Pays
$75
If passed on to consumers…
Example 2
Gross Receipt Tax
0.100%
Business Pays
$60
If passed on to consumers…
+0.125%
+0.100%
Adjusted for new tax
$60,075.09
Adjusted for new tax
$60,060.06
Model Comparisons
21
Tax Model Comparisons
Business Scenarios – Estimated Revenue
Business Scenario Business
Type
Gross
Receipts Employees Other
Units
National
City
(Current)
Single
Gross
Receipts
Variable
Gross
Receipts
Chula Vista
(Per
Employee)
Oceanside
(Gross
Receipts)
Vista
(Gross
Receipts)
San Diego
(Per
Employee)
Single Family Housing
Construction Contractor $45,000 3 $20 $50 $65 $131 $50 $41 $34 Commercial Property Property
Rental $75,000 3 10 Units $26 $88 $175 $20 $50 $64 $34
Automotive Dealer Retail $40,000,000 20 $1,720 $49,994 $40,000 $352 $20,000 $8,471 $225 Laundry Service Service $1,200,000 8 $371 $1,494 $2,375 $196 $600 $601 $34 Dental Office Professional $3,000,000 10 5 Prof. $938 $3,744 $8,950 $1,050 $1,500 $1,071 $34 Apartment Complex Property
Rental $5,000,000 15 200
Units $5,150 $6,244 $14,950 $248 $2,500 $500 $200
Department Store Retail $20,000,000 35 $2,126 $24,994 $20,000 $547 $10,000 $4,471 $300 23
Cost of Doing Business: National City vs. Chula Vista
What is the cost advantage of doing business in National City compared to Chula Vista? Chula Vista Average
(Cost Per Square Foot)
National City Average
(Cost Per Square Foot) Difference
Office Space $37.00 – $42.15 $27.00 – $29.04 National City is 25% cheaper Retail Space $32.00 – $33.00 $32.00 – $33.00 Identical averages Flex Space $28.00 $22.00 National City is 21% cheaper
Industrial/Warehouse $17.78 – $18.00 $20.00 – $21.88 National City is 15% pricier
Cost of Doing Business: National City vs. Chula Vista
Business Example
Metric Chula Vista National City Difference
Median Annual SF Cost $29.70 $26.42 11.1%
Annual Occupancy Cost (125K SF) $3,713,036 $3,302,143 $410,893 Business Tax (Department Store Example) $547 $20,000 -$19,453 Net Cost to a Department Store $3,713,583 $3,322,143 $391, 440 Department Store Number of Employees
35 Gross Receipts
$20,000,000
Estimated SQFT
125,000
Appendix
24
Appendix A
Category Definitions
In Model 2, we use five basic business categories along with an exempt category. These are five basic structures that are common across municipalities. The definitions below are general and not meant to be the complete definitions that would appear in a municipal code.
Contractors: These are persons or firms that are carrying on the business of a contractor, subcontractor, or builder, particularly the construction or repair of any buildings. Examples include but are not limited to construction, plumbing, HVAC, etc.
General Business/Retail: These are retailers, restaurateurs, and other general businesses. All these businesses are likely to contribute to your tax base in other ways (i.e., sales tax) and often have lower profit margins.
Professional and Advanced: These businesses offer services that require rigorous training through higher education or vocational institutions that certify the complete acquisition of skills and the ability to provide such professional services. This also includes businesses that can be considered "Advanced Services," such as those in the research and development and scientific fields. Examples include, but are not limited to, a doctor’s office, a law office, a consulting firm, etc.
Property Rental: Although listed separately, this category includes any business that leases, rents, or provides use of real property to another individual or entity for compensation. Examples include, but are not limited to, commercial leasing, residential rental, parcel leasing, hoteliers, etc. The city could also include language and rates for taxing short-term rentals in this category.
Services: This sector offers services that require minimal to no higher education or training. It is also the default category for any business that is not explicitly defined in one of the other five categories. Examples include, but are not limited to, hair stylists, gardeners, nail salons, etc. 25
Appendix B: Detailed Comparison Analysis
Business Scenarios – Tax Structure
Business
Scenario Business Type Gross
Receipts
Employee
s
Other
Units National City Chula Vista
(Per Employee)
Oceanside
(Gross Receipts)
Vista
(Gross Receipts)
San Diego
(Per Employee)
Single Family Housing
Construction Contractor $45,000 3
Class 1
$5k - $99.99k
$20
General Business
$105 +$13 each additional
person
Gross Receipts
$0.50 per $1k of GR
Gross Receipts
$15 base (≤$15k) + marginal rates
from 0.001 (15–20k) down to 0.0002
(> $2.0M).
Per Employee
$34 if employee <=
12 Commercial Property Property Rental $75,000 3 10 Units Class 1
$5k - $99.99k
$26
Rental
$12 + $1.20 per each over 3
Gross Receipts
$0.50 per $1k of GR
Gross Receipts
$15 base (≤$15k) + marginal rates
from 0.001 (15–20k) down to 0.0002
(> $2.0M
Per Employee
$34 if employee <=
12 Automotive Dealer Retail $400,000 6
Class 1
$Above 22M = $1,720
$1,720
General Business
$105 +$13 each additional
person
Gross Receipts
$0.50 per $1k of GR
Gross Receipts
$15 base (≤$15k) + marginal rates
from 0.001 (15–20k) down to 0.0002
(> $2.0M
Per Employee
$125 + $5 per Emp if
emp .>=13
Laundry Service Service $1,200,000 8
Class 5
$1.2M - $1.299M
$371
General Business
$105 +$13 each additional
person
Gross Receipts
$0.50 per $1k of GR
Gross Receipts
$15 base (≤$15k) + marginal rates
from 0.001 (15–20k) down to 0.0002
(> $2.0M
Per Employee
$34 if employee <=
12 Dental Office Professional $3,000,000 10 5 Prof.
Class 6
$3M - $3.499M
$938
Professional
$210 per professional
Gross Receipts
$0.50 per $1k of GR
Gross Receipts
$15 base (≤$15k) + marginal rates
from 0.001 (15–20k) down to 0.0002
(> $2.0M
Per Employee
$34 if employee <=
12 Apartment Complex Property Rental $5,000,000 15 200 Units Residential Rental
$150 + $5k for GR over
$4.5M
Rental
$12 + $1.20 per each over 3
Gross Receipts
$0.50 per $1k of GR
Apartment Houses
$2.50 per Unit
Per Employee
$125 + $5 per Emp if
emp .>=13
Department Store Retail $20,000,000 35
Class 2
$20M - $21.99M
$2,126
General Business
$105 +$13 each additional
person
Gross Receipts
$0.50 per $1k of GR
Gross Receipts
$15 base (≤$15k) + marginal rates
from 0.001 (15–20k) down to 0.0002
(> $2.0M
Per Employee
$125 + $5 per Emp if
emp .>=13
26
1. The taxable activity. The typical taxable activity for business license tax is “any business, commercial enterprise, trade, calling, vocation, profession, or any other means of livelihood, whether or not it is carried on for gain or profit, engaged in by any person or company."
2. The measure of the taxable activity. Once we know what is taxed, we must measure how much of that taxable activity is occurring. Some cities may measure the number of employees. A more modern trend is to measure the gross receipts.
3. The rate. Given a certain amount of taxable activity, a rate is applied to determine how much tax is owed.
4. The classification. Cities will often group certain kinds of businesses together and apply different tax rates to each group. For example, a city might want to charge restaurants a lower rate than commercial rentals.
5. The results. Since we are concerned with the revenue-generating aspect of the business license, when we refer to the “results” of the tax, we mean the revenue generated for the City.
Appendix C: Five Key Components Of A Business License Tax 27
Proposed Ballot Measure Language
Business License Reform Measure: Without increasing taxes on residents, for maintaining 911 response/police/fire protection, preventing crime, keeping public areas safe/clean, addressing homelessness, repairing streets/potholes, and general fund city services, shall the measure reforming National City’s annual business license tax rate to 0.1%-0.3% of gross receipts for large businesses, and a $25 flat rate for small businesses, generating approximately $7,500,000 annually, with annual public spending disclosures, until ended by voters, be adopted?
Note: Ballot Measure Language subject to modifications
Stakeholder Outreach Summary
On April 16, 2026, the City Council directed staff to conduct public outreach with the business community regarding the City’s evaluation of a potential reform to the Business License Tax, a gross receipts based reform structure. In response to that direction, staff coordinated and participated in several stakeholder meetings to provide information, answer questions, and receive feedback from the business community and other interested parties.
Staff presented information regarding the potential Business License Tax reform to the following stakeholder groups:
• Mile of Cars Association;
• South County Economic Development Council;
• National City Chamber of Commerce – Economic Development Committee; and • Working Waterfront.
In addition to these stakeholder meetings, staff also provided support to Councilmembers with focus groups involving various business and community leaders over the past several weeks.
The purpose of the outreach was to provide an overview of the City’s fiscal condition, the existing Business License Tax structure, potential reform options, and the City services that could be supported by additional locally controlled revenue. Staff also sought to better understand business community concerns, including how a potential gross receipts based structure could affect different types of businesses operating in National City.
Overall, the feedback received from the business community reflected significant concern regarding any new or increased business tax at this time. Stakeholders generally expressed that they were not supportive of the proposed reform, citing concerns related to current economic conditions, the rising cost of doing business, accountability for City spending, and the financial pressure already facing local businesses.
A recurring concern raised during outreach was that many businesses operate on narrow profit margins and may have limited ability to absorb additional costs. For example, representatives from the automotive dealership community noted that while dealerships may have high gross sales figures, their actual profit margins are often much thinner. As a result, stakeholders expressed concern that a tax based on gross receipts may not fully reflect a business’s ability to pay.
Stakeholders also raised questions regarding how the proposed structure would affect small businesses, whether costs could be passed on to customers or residents, and how the City would ensure transparency and accountability in the use of any new revenue. These concerns were expressed consistently across multiple outreach discussions.
Staff did receive some limited positive feedback regarding the structure of the proposed reform. However, this feedback was limited and did not change the overall tone of the outreach, which reflected broad concern and opposition from the business community regarding a new or increased business tax.
The outreach process provided staff and Council with important feedback regarding the business community’s perspective. While stakeholders recognized the importance of maintaining City services, the feedback was that businesses are concerned about the timing, financial impact, and accountability associated with the proposed reform. This feedback has been considered as part of staff’s continued evaluation of potential Business License Tax modernization options.
JUNE 2, 2026
NATIONAL CITY BUDGET PRIORITY SURVEY
220-7986
MARGIN OF SAMPLING ERROR ±X.X% (95% CONFIDENCE LEVEL)
(PHONE ONLY)
Hello, I’m _________ calling from _________, a public opinion research company. We are conducting an opinion survey about issues that interest people living in National City, and we are only interested in your opinions. Please be assured that I am not trying to sell you anything or ask for a donation of any kind, and that your participation and responses will be kept confidential. May I please speak to______________? (IF NOT AVAILABLE, ASK WHEN IT WOULD BE CONVENIENT TO CALL AGAIN.) (MUST SPEAK TO PERSON LI STED. VERIFY THAT THE VOTER LIVES AT THE ADDRESS LISTED, OTHERWISE TERMINATE.) (IF NOT AVAILABLE, ASK WHEN IT WOULD BE CONVENIENT TO CALL AGAIN.) (NOTE TO INTERVIEWERS: IF RESPONDENT ANSWERS PHONE IN SPANISH – “BUENO,” “HOLA,” ETC., IMMEDIATELY RESPOND WITH SPANISH LANGUAGE INTRODUCTION OR HAND OFF TO SPANISH-CAPABLE INTERVIEWER.)
(PHONE ONLY)
A. Before we begin, have I reached you on a cell phone? (IF ON CELL PHONE, ASK: If you are currently driving or otherwise occupied, please confirm that it is safe for you to take this survey without endangering yourself or others.)
Yes, on cell and can safely take survey 1
Yes, on cell and should reschedule (RESCHEDULE)
No, not on cell 2
(DON’T READ) Prefer not to say 3
(ONLINE ONLY)
Thank you for participating in this public opinion survey about different issues facing residents of National City. Please be assured that we are not trying to sell you anything or ask for a donation of any kind, and that your participation and responses will be kept confidential.
A. If you are taking this survey on a mobile device and are currently driving or otherwise occupied, please confirm that it is safe for you to take this survey without endangering yourself or others.
Yes, can safely take survey 1
I’ll come back later (DIVERT TO LANDING PAGE)
(RESUME ASKING ALL RESPONDENTS)
1. (T) Do you think things in National City are generally headed in the right direction, or do you feel that things are off on the wrong track?
Right direction 1
Wrong track 2
(DON’T READ ON PHONE) Don’t know/(PHONE: No answer) 3
220-7986 PAGE 2
2. Next, are some names of organizations (SPLIT SAMPLE A: and groups). For each one, please indicate whether you have a very favorable, somewhat favorable, somewhat unfavorable, or very unfavorable opinion of that organization (SPLIT SAMPLE A: or group). If you have never heard of that organization (SPLIT SAMPLE A: or group) or have heard of them, but do not have enough information to offer an opinion, you can indicate that instead. (RANDOMIZE)
(ONLINE: SHOW ALL ANSWER OPTIONS)
(ASK ITEM A FIRST; RANDOMIZE ALL OTHERS)
SS Very
Fav
Smwt
Fav
Smwt
Unfav
Very
Unfav
Never
Heard
Of
Heard
Of/
No Op
a. (T) National City government overall 1 2 3 4 5 6
b. Local small business owners A 1 2 3 4 5 6
c. (T) National City Chamber of Commerce B 1 2 3 4 5 6 d. (T) National City City Council 1 2 3 4 5 6
e. (T) National City Fire Department A 1 2 3 4 5 6
f. (T) National City Police Department B 1 2 3 4 5 6
3. (T) Next, in your personal opinion, do you think there is a great need, some need, a little need, or no real need for additional funds to provide the level of city services that National City residents need and want?
Great need 1
Some need 2
A little need 3
No real need 4
(DON’T READ ON PHONE) Don’t know 5
220-7986 PAGE 3
4. The next question is about a local measure that could appear on the ballot in an upcoming election in the City of National City. The measure may read as follows:
Business License Reform Measure : Without increasing taxes on residents, for maintaining 911 (PHONE: 9-1-1) response/police/fire protection, preventing crime, keeping public areas safe/clean, addressing homelessness, repairing streets/potholes, and general fund city services, shall the measure reforming National City’s annual business license tax rate to 0.1%-0.3% (PHONE: zero point one percent to zero point three percent) of gross receipts for large businesses, and a $25 flat rate for small businesses, generating approximately $7,500,000 ( PHONE: seven million, five -hundred thousand dollars ) annually, with annual public spending disclosures, until ended by voters, be adopted?
If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it?
(ONLINE: SHOW ANSWER OPTIONS FOR “YES,” “NO” AND “DON’T KNOW”) (IF YES/NO, ASK: Is that definitely or just probably YES/NO?) (IF DON’T KNOW/NO ANSWER, ASK: Do you lean toward voting yes or no?)
Definitely yes 1
Probably yes 2
Undecided, lean yes 3
Undecided, lean no 4
Probably no 5
Definitely no 6
(DON’T READ ON PHONE) Don’t Know (PHONE:) No answer 7
(ASK Q5 AND Q6 ONLINE ONLY)
(ASK Q5 IF Q4=CODES 1-3 –ANY YES)
5. What are the one or two main reasons you would vote Yes in favor of this measure? (OPEN-END, RECORD
VERBATIM RESPONSE AND THEN CODE, MULTIPLE RESPONSE ALLOWED)
(ASK Q5 AND Q6 ONLINE ONLY)
(ASK Q6 IF Q4=CODES 4-6 –ANY NO)
6. What are the one or two main reasons you would vote No to oppose this measure? (OPEN-END, RECORD
VERBATIM RESPONSE AND THEN CODE, MULTIPLE RESPONSE ALLOWED)
220-7986 PAGE 4
(RESUME ASKING ALL RESPONDENTS)
7. Next, please consider some ways that funding could be used or provisions that could be included in the Business License Reform Measure you have been considering. Regardless of whether you support this measure, for each one, please indicate how important it is to you that each use of funds or provision be included in the measure:
extremely important, very important, somewhat important, or not too important. (PHONE: Here is the first one...) (RANDOMIZE)
(ONLINE: SHOW ALL ANSWER OPTIONS)
(PHONE: DON’T READ “DON’T KNOW” OPTION)
SS Ext
Imp
Very
Imp
Smwt
Imp
Not
Too
Imp
Don’t
Know
a. Not increasing taxes on residents 1 2 3 4 5
Public Safety
b. Maintaining 911 (PHONE: 9-1-1) response A 1 2 3 4 5 c. Preventing cuts to 911 (PHONE: 9-1-1) response B 1 2 3 4 5 d. Maintaining fire protection A 1 2 3 4 5
e. Preventing cuts to fire protection B 1 2 3 4 5
f. Preventing cuts to police protection A 1 2 3 4 5
g. Maintaining police protection B 1 2 3 4 5
h. Preventing crime A 1 2 3 4 5
i. Preventing crime and thefts B 1 2 3 4 5
j. Recruiting and retaining well-trained firefighters and paramedics A 1 2 3 4 5
k. Recruiting and retaining well-trained police officers B 1 2 3 4 5 l. Addressing homelessness 1 2 3 4 5
m. (PT) Preventing cuts to neighborhood police patrols 1 2 3 4 5 n. Maintaining anti-gang programs and enforcement A 1 2 3 4 5 o. Responding to thefts and burglaries of local small
businesses B 1 2 3 4 5
p. Maintaining truck traffic enforcement 1 2 3 4 5
q. Enforcing truck overnight parking regulations 1 2 3 4 5 Repair and Maintenance
r. Keeping public and business areas safe and clean A 1 2 3 4 5 s. Keeping public areas safe and clean B 1 2 3 4 5
t. Repairing streets and potholes 1 2 3 4 5
u. Maintaining City parks A 1 2 3 4 5
v. Cleaning up illegal dumping B 1 2 3 4 5
Business/Economy
w. Ensuring National City is a business-friendly city A 1 2 3 4 5 x. Attracting and retaining small businesses B 1 2 3 4 5 y. Attracting and retaining local jobs 1 2 3 4 5
z. Ensuring equity to all businesses 1 2 3 4 5
aa. Ensuring fairness to all businesses A 1 2 3 4 5
bb. Ensuring all businesses pay their fair share B 1 2 3 4 5 cc. Ensuring large businesses pay their fair share A 1 2 3 4 5 dd. Ensuring large businesses pay a proportionate share B 1 2 3 4 5 Other City Services
ee. Maintaining city services A 1 2 3 4 5
220-7986 PAGE 5
SS Ext
Imp
Very
Imp
Smwt
Imp
Not
Too
Imp
Don’t
Know
ff. Preventing cuts to city services B 1 2 3 4 5
gg. Preventing cuts to senior programs A 1 2 3 4 5
hh. Preventing cuts to the City’s free to low-cost meal program for seniors B 1 2 3 4 5
ii. Preventing cuts to youth and afterschool programs A 1 2 3 4 5 Accountability/Other
jj. Updating National City’s 49-year-old Business License Tax rate B 1 2 3 4 5
kk. Updating National City’s Business License Tax rate A 1 2 3 4 5 ll. Reforming National City’s annual Business License Tax rate B 1 2 3 4 5
mm. Requiring an independent citizens’ oversight
committee A 1 2 3 4 5
nn. Requiring annual independent financial audits B 1 2 3 4 5 oo. Requiring annual spending disclosures A 1 2 3 4 5
pp. Qualifying for state and federal matching funds B 1 2 3 4 5
220-7986 PAGE 6
Now you will be presented with statements from potential supporters and opponents of the Business License Reform Measure you have been considering.
8. First, please consider the following statements from people who may support the measure. For each statement, please indicate if it makes you much more inclined or somewhat more inclined to vote Yes on the measure. (ONLINE: If it makes you less inclined to favor the measure, you do not believe the statement, or if it has no effect on your thinking one way or the other, you can indicate that instead) (PHONE: If you do not believe the statement, or if it has no effect on your thinking one way or the other, you can indicate that instead.) (RANDOMIZE)
(ONLINE: SHOW EACH STATEMENT ON THEIR OWN SCREEN WITH THE FOLLOWING QUESTION: “Does this statement make you much more inclined or somewhat more inclined to vote Yes on the measure? If it makes you less inclined to favor the measure, you do not believe the statement, or if it has no effect on your thinking one way or the other, please indicate that instead.”)
(ONLINE: SHOW ONE STATEMENT AT A TIME; SHOW ALL ANSWER OPTIONS) (PHONE: DON’T READ “LESS INCLINED” AND “DON’T KNOW” OPTIONS) SS
Much
More
Inclined
Smwt
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Inclined
Less
Inclined
Don’t
Believe
No
Effect
Don’t
Know
a. (NO TAX TO RESIDENTS) This
measure will NOT increase taxes on
residents. It is paid only by
businesses to support the city
services they use and benefit from,
such as crime prevention, 911
(PHONE: 9-1-1) response, repairing
potholes and roads, and keeping
business and public areas safe and
clean.
1 2 3 4 5 6
b. (ACCOUNTABILITY) This measure
includes strict accountability
provisions, including public
disclosure of all spending and
independent annual financial
audits, to make sure all funds are
used effectively, efficiently, and as
promised.
1 2 3 4 5 6
c. (DEFICIT/RESERVES) Like many
California cities, National City is
facing a budget deficit. If this
measure does not pass, the City’s
reserve funds could be substantially
depleted within the next year. As a
result, the City could have to make
significant cuts to city services,
including public safety and street
and park maintenance.
1 2 3 4 5 6
220-7986 PAGE 7
SS
Much
More
Inclined
Smwt
More
Inclined
Less
Inclined
Don’t
Believe
No
Effect
Don’t
Know
d. (FAIR SHARE - OUTDATED LAW)
National City’s business tax rules
are nearly 50 years old, outdated,
and unfair to small businesses.
Right now, mom-and-pop
businesses can pay a higher share
than large companies and national
chains. This measure would fix this
and make sure big businesses pay
their fair share.
A 1 2 3 4 5 6
e. (FAIR SHARE) Large industrial and
commercial businesses in National
City cause more wear and tear on
our streets and roads and require
more city services than our local
small businesses. Passing this
measure would ensure these large
businesses pay their fair share to
maintain local streets, parks, police
and fire services, and other
essential services.
B 1 2 3 4 5 6
f. (NUMBER OF CRIMES) Last year
there were over 800 violent crimes
and more than 1,500 property
crimes, including auto thefts and
burglaries, in National City. If this
measure doesn’t pass, the City will
be forced to significantly cut anti-
gang programs, neighborhood
police patrols, crime investigation,
and other public safety services.
Passing this measure is essential to
keeping our community safe.
A 1 2 3 4 5 6
g. (PT 2013) (CRIME RATE) National
City has one of the highest crime
rates in the County, and public
safety represents over 70 percent
of the City budget. If this measure
doesn’t pass, the City will be forced
to significantly cut anti-gang
programs, neighborhood police
patrols, crime investigation, and
other public safety services. Passing
this measure is essential to keeping
our community safe.
B 1 2 3 4 5 6
220-7986 PAGE 8
SS
Much
More
Inclined
Smwt
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Inclined
Less
Inclined
Don’t
Believe
No
Effect
Don’t
Know
h. (BUSINESS AREAS) Funds from this
measure could be used to continue
to support crime prevention,
address homelessness, and clean
up blight and vacant spaces in our
business areas to help attract and
retain local businesses and improve
the National City economy.
A 1 2 3 4 5 6
i. (HOMELESS) Homelessness in
National City has nearly doubled in
the last four years. This measure
could continue to help get people
off the streets and into housing,
treatment, and other services. This
would also help ensure our parks,
sidewalks, and business areas are
clean and safe for residents,
families, and local businesses.
B 1 2 3 4 5 6
j. (PT) (STREETS) More than half of
National City’s streets, roads, and
alleys are rated only fair, poor, or
very poor. This measure could make
sure that local trucking and
industrial companies that cause
more damage to city roads
contribute to fixing the problem.
A 1 2 3 4 5 6
k. (MATCHING FUNDS) National City
has successfully brought in millions
of dollars in state and federal
matching funds to help maintain
our essential city services. And this
measure would qualify the City for
millions of dollars more in matching
funds that would otherwise go to
other cities instead. These funds
could be used to fill potholes, keep
parks safe and clean, protect public
safety, and for other city services.
B 1 2 3 4 5 6
220-7986 PAGE 9
9. Now that you have (PHONE: heard) (ONLINE: read) more about it, please think again about the potential measure that may read as follows:
Business License Reform Measure : Without increasing taxes on residents, for maintaining 911 (PHONE: 9-1-1) response/police/fire protection, preventing crime, keeping public areas safe/clean, addressing homelessness, repairing streets/potholes, and general fund city services, shall the measure reforming National City’s annual business license tax rate to 0.1%-0.3% (PHONE: zero point one percent to zero point three percent) of gross receipts for large businesses, and a $25 flat rate for small businesses, generating approximately $7,500,000 (PHONE: seven million, five -hundred thousand dollars ) annually, wit h annual public spending disclosures, until ended by voters, be adopted?
If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it?
(ONLINE: SHOW ANSWER OPTIONS FOR “YES,” “NO” AND “DON’T KNOW”) (IF YES/NO, ASK: Is that definitely or just probably YES/NO?) (IF DON’T KNOW/NO ANSWER, ASK: Do you lean toward voting yes or no?)
Definitely yes 1
Probably yes 2
Undecided, lean yes 3
Undecided, lean no 4
Probably no 5
Definitely no 6
(DON’T READ ON PHONE) Don’t Know (PHONE:) No answer 7
220-7986 PAGE 10
10. Next, please consider the following statements from people who oppose this potential local measure. For each statement, please indicate if it makes you much more inclined or somewhat more inclined to vote No on the measure. (ONLINE: If it makes you less inclined to oppose the measure, you do not believe the statement, or if it has no effect on your thinking one way or the other, you can indicate that instead.) (PHONE: If you do not believe the statement, or if it has no effect on your thinking one way or the other, you can indicate that instead.) (RANDOMIZE)
(ONLINE: SHOW EACH STATEMENT ON THEIR OWN SCREEN WITH THE FOLLOWING QUESTION: “Does this statement make you much more inclined or somewhat more inclined to vote No on the measure? If it makes you less inclined to oppose the measure, you do not believe the statement, or if it has no effect on your thinking one way or the other, please indicate that instead.”)
(ONLINE: SHOW ALL ANSWER OPTIONS)
(PHONE: DON’T READ “LESS INCLINED” AND “DON’T KNOW” OPTIONS)
SS
Much
More
Inclined
Smwt
More
Inclined
Less
Inclined
Don’t
Believe
No
Effect
Don’t
Know
a. (WILL INCREASE RENT) What the
City isn’t telling voters is that
this Business License Tax
measure will nearly triple the tax
a landlord pays on each unit
they rent out. And landlords will
just pass that cost down to
National City renters. We need
to make housing more
affordable, not less.
1 2 3 4 5 6
b. (PASSED DOWN) When taxes go
up on local businesses, National
City residents are the ones who
pay through higher prices.
The cost of living, including gas
prices, rent, mortgages, and
groceries is sky high. Now is not
the time to raise taxes even
more on everyday items we
need to buy and make it harder
to make ends meet.
1 2 3 4 5 6
220-7986 PAGE 11
SS
Much
More
Inclined
Smwt
More
Inclined
Less
Inclined
Don’t
Believe
No
Effect
Don’t
Know
c. (HURTS SMALL BIZ) This
measure claims it is more fair to
businesses, but taxes will go up
for every single business, with
most seeing their taxes at least
double—including small mom-
and-pop shops and restaurants
that can afford it the least. And
some businesses will get hit with
a tax bill 10 times higher than
what they pay now.
1 2 3 4 5 6
d. (NOT BUSINESS FRIENDLY) This
measure will give National City
the highest business license tax
in the County. Increasing the
business license tax sends a
message that National City is
unfriendly to business. We need
to attract more businesses to
National City that residents need
and want, not discourage them.
A 1 2 3 4 5 6
e. (MORE VACANCY) Since 2020,
National City has lost nearly 500
businesses. This measure will
lead more businesses to shut
their doors and not renew
leases, leading to even more
vacant storefronts and increased
loitering, graffiti, and rundown
areas in our city.
B 1 2 3 4 5 6
f. (MISMANAGEMENT) National
City government is poorly
managed and can’t get its act
together. There have been eight
different city managers in the
last seven years alone. The City
is two years late in releasing
legally required spending
reports—with no explanation.
And the City may have to pay a
10 million dollar lawsuit for its
mismanagement. We cannot
trust City government with any
more of our tax dollars.
A 1 2 3 4 5 6
220-7986 PAGE 12
SS
Much
More
Inclined
Smwt
More
Inclined
Less
Inclined
Don’t
Believe
No
Effect
Don’t
Know
g. (WASTE) Instead of raising taxes,
City government should cut
wasteful spending and end
excessive administrative salaries
and gold-plated benefit and
pension packages paid by
taxpayers. City politicians and
bureaucrats must do what
residents and small businesses
do every day—live within their
means and not waste money.
B 1 2 3 4 5 6
11. Sometimes over the course of a survey like this, people change their minds and sometimes they do not. So, please think one more time about the potential local ballot measure that may read as follows:
Business License Reform Measure : Without increasing taxes on residents, for maintaining 911 (PHONE: 9-1-1) response/police/fire protection, preventing crime, keeping public areas safe/clean, addressing homelessness, repairing streets/potholes, and general fund city services, shall the measure reforming National City’s annual business license tax rate to 0.1%-0.3% (PHONE: zero point one percent to zero point three percent) of gross receipts for large businesses, and a $25 flat rate for small businesses, generating approximately $7,500,000 ( PHONE: seven million, five -hundred thousand dollars ) annually, with annual public spending disclosures, until ended by voters, be adopted?
If the election were held today, do you think you would vote “yes” in favor of this measure or “no” to oppose it?
(ONLINE: SHOW ANSWER OPTIONS FOR “YES,” “NO” AND “DON’T KNOW”) (IF YES/NO, ASK: Is that definitely or just probably YES/NO?) (IF DON’T KNOW/NO ANSWER, ASK: Do you lean toward voting yes or no?)
Definitely yes 1
Probably yes 2
Undecided, lean yes 3
Undecided, lean no 4
Probably no 5
Definitely no 6
(DON’T READ ON PHONE) Don’t Know (PHONE:) No answer 7
220-7986 PAGE 13
12. Which statement comes closer to your opinion when thinking about reforming National City’s business license tax? Please choose one option even if it is difficult to decide. (ROTATE)
All businesses should pay the same percentage of what they bring in. 1 We should protect smaller businesses in National City by larger or more profitable business categories paying a higher percentage than smaller businesses.
2 (DON’T READ ON PHONE) Don’t Know 3
You are almost done with the survey, and the final questions are for classification purposes only.
13. With which racial or ethnic group do you identify yourself?
(PHONE: READ ANSWER OPTIONS IN ORDER)
Latino or Hispanic 1
White 2
Black or African American 3
Filipino 4
Or some other Asian or Pacific Islander group 5
More than one ethnic or racial group 6
Some other ethnic or racial background (SPECIFY__________) 7 (DON’T READ ON PHONE) Prefer not to say 8
14. What is your gender?
Male 1
Female 2
Other 3
(DON’T READ ON PHONE) Prefer not to say 4
(THANK AND TERMINATE INTERVIEW)
220-7986 PAGE 14
SAMPLE VARIABLES
LANGUAGE OF INTERVIEW
English 1
Spanish 2
PARTY REGISTRATION
Democrat 1
Republican 2
No Party Preference 3
Other 4
AGE
18-24 1
25-29 2
30-34 3
35-39 4
40-44 5
45-49 6
50-54 7
55-59 8
60-64 9
65-74 10
75+ 11
CITY COUNCIL DISTRICTS
1 1
2 2
3 3
4 4
LIKELY JUNE 2026
Yes 1
No 2
DATA COLLECTION MODE/CONTACT METHOD
Telephone 1
Online/Email 2
Online/Text 3
VOTE BY MAIL
1 1
2 2
3 3
BLANK 4
220-7986 PAGE 15
PERMANENT ABSENTEE
Yes 1
No 2
A/B SPLIT SAMPLES
A 1
B 2
PAST ELECTION PARTICIPATION
P18 1
G18 2
P20 3
G20 4
P22 5
G22 6
P24 7
G24 8
BLANK 9
HOUSEHOLD PARTY TYPE
D1 1
D2+ 2
R1 3
R2+ 4
I1+ 5
Mixed 6
AGENDA REPORT
Department: Human Resources
Prepared by: Rex Sanders, Interim Human Resources Director Meeting Date: Tuesday, June 16, 2026
Approved by: Steve Manganiello, Acting City Manager
SUBJECT:
City Manager Employment Agreement
RECOMMENDATION:
Adopt a Resolution entitled, “Resolution of the City Council of the City of National City, California, Appointing Doug Schulze as City Manager and Authorizing the Mayor to Execute an Employment Agreement Between the City of National City and Doug Schulze Effective June 17, 2026.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
On April 18, 2025, the City Council and then-City Manager Ben Martinez mutually agreed that Mr.
Martinez would step down from his position, effective immediately, resulting in a vacancy in the office of City Manager.
To ensure continuity of City operations while the recruitment process was underway, the City Council appointed Scott Huth to serve as Interim City Manager on April 22, 2025. Following the expiration of Mr. Huth’s service time pursuant to CalPERS regulations, the City Council appointed Police Chief Alejandro Hernandez to serve as Acting City Manager and subsequently appointed Director of Public Works/City Engineer Stephen Manganiello to serve as Acting City Manager.
Following completion of the recruitment process, the City Council has selected Douglas Schulze to serve as City Manager.
It is the City’s practice to authorize an employment agreement for certain executive pos itions, including the City Manager position, in order to formally establish compensation, duties, and terms of employment. The City Council desires to appoint and enter into an employment agreement with Doug Schulze as the City’s City Manager.
The specific terms of the Employment Agreement are set forth in the attached “Oral Summary Report Outlining the Salary and Other Compensation of the Interim City Manager.” The Summary is a requirement of the Brown Act (Government Code Section 54953( d)(3)), and must b e read aloud into the record at a City Council Meeting.
FINANCIAL STATEMENT:
Funding for this position is included in the fiscal year 2026 -27 adopted budget for City Manager Personnel Services. No additional appropriations are required . The employment agreement provides for a base salary of $300,000 annually as well as certain other benefits and allowances specific to this position or as provided to all members of the Executive Group of the City.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Not Applicable
ENVIRONMENTAL REVIEW:
This is not a project under CEQA , and is therefore , not subject to environmental review.
CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A - Agreement
Exhibit B - Oral Summary Report Outlining the Salary and Other Compensation Exhibit C - Kimball House Apartment Lease
Exhibit D - Resolution
EMPLOYMENT AGREEMENT - CITY MANAGER
TABLE OF CONTENTS
Introduction 1
Section 1 Term 1
Section 2 Duties and Authority 1
Section 3 Ethical Commitments 2
Section 4 Compensation 2
Section 5 Health, Disability and Life Insurance
Benefits 2
Section 6 Vacation, Sick and Military Leave 3
Section 7 Monthly Vehicle Allowance 3
Section 8 Retirement 3
Section 9 General Business Expenses 3
Section10 Termination 4
Section 11 Severance 4
Section 12 Resignation 5
Section 13 Performance Evaluation 5
Section 14 Hours of Work 6
Section 15 Housing 6
Section 16 Outside Activities 6
Section 17 Indemnification 6
Section 18 Bonding 7
Section 19 Other Terms and Conditions of
Employment 7
Section 20 Notices 7
Section 21 General Provisions 8
1 EMPLOYMENT AGREEMENT
THIS AGREEMENT made and entered into this 16th day of June, 2026, by and between the City of National City, a municipal corporation (hereinafter called “Employer”), and Douglas Schulze (hereinafter called “Employee”), an individual who has the education, training and experience in local government management to perform satisfactorily the duties of the City Manager, both of whom agree as follows:
Section 1. Term.
This Agreement shall remain in full force and effect for period of (3) years from June 17, 2026, through June 16, 2029, unless sooner terminated by the Employer or Employee as provided in Section 10, 11 or 21 of this Agreement. This Agreement shall automatically be renewed on its anniversary date for a two (2) year term unless notice is given at least three (3) months before the expiration date.
Section 2. Duties and Authority.
A. Employer agrees to employ Douglas Schulze as City Manager, on an at-will basis, to perform the functions and duties specified in the National City Municipal Code and the California Government Code, and to perform other legally permissible and proper duties and functions, commencing on June 17, 2026, as assigned by Employer, subject to any limitations set forth in this Section. Employee shall not be required to accept Employer’s assignment of any duties outside of the scope of those customarily performed by persons holding the role of city manager in the absence of Employee’s express written consent to such assignment. Employer may not reassign Employee to another position in the absence of Employee’s express written consent to such assignment. Employer shall not unreasonably interfere with Employee’s performance of such duties.
B. Employee shall be the chief executive officer of the Employer and faithfully perform Employee’s lawfully prescribed and assigned duties with reasonable care, diligence, skill, and expertise in compliance with all applicable, lawful governing body directives; state, local, and federal laws; and Employer policies, rules, and ordinances as they exist or may hereafter be amended.
C. Except as may be provided otherwise by applicable law, regulation, or Employer’s agreement with any other person, Employee shall have the ultimate supervisory and managerial authority and responsibility to hire, direct, assign, reassign, evaluate, change the terms and conditions of employment, and terminate the employment of all other employees of Employer consistent with the policies of the governing body and the ordinances and code of the Employer, which authority may be delegated by Employee to such other employees as Employee deems appropriate.
D. Except as may be provided otherwise by applicable law, regulation or Employer’s agreement with any other person, Employee shall have authority to establish internal regulations, rules, and procedures which the Employee deems necessary for the efficient and effective operation of the Employer.
E. Employee shall be permitted to attend, whether personally or through a designee of Employee’s choosing, all meetings of Employer’s governing body, both public and closed, with the exception of those closed meetings devoted to the subject of this Agreement, or any amendment thereto, or the Employee’s evaluation, unless
2 otherwise provided by applicable law, regulation, or Employer’s agreement with any other person.
F. Employer agrees to promptly communicate and provide Employee a reasonable opportunity to cure all substantive criticisms, complaints, and suggestions with respect to Employee’s performance of services pursuant to this Agreement.
G. Except as may be provided otherwise by applicable law, regulation, or this Agreement, Employee shall carry out Employer’s lawful policy directives, goals, and objectives, as communicated to Employee by Employer’s governing body, while presenting information and recommendations that allow for fully informed policy decisions that both address immediate needs and anticipate future conditions.
Section 3. Ethical Commitments
The Employer expects the Employee to adhere to the highest professional standards. The Employee’s actions will always comply with those standards. The Employee agrees to follow the Code of Ethics of the International City Management Association (ICMA) and the ethics rules, regulations, and laws of the State of California. The ICMA Code of Ethics can be found on the ICMA website, icma.org. Consistent with the standards outlined in the Code, the Employee shall not endorse candidates, make financial contributions, sign or circulate petitions, or participate in fundraising activities for individuals seeking or holding elected office, nor seek or accept any personal enrichment or profit derived from confidential information or misuse of public time.
Employer shall support Employee in keeping these commitments by refraining from any order, direction or request that would require Employee to violate the ICMA Code of Ethics. Neither the governing body nor any individual member thereof shall request Employee to endorse any candidate, make any financial contribution, sign or circulate any petition, or participate in any fundraising activity for individuals seeking or holding elected office, nor to handle any matter of personnel on a basis other than fairness, impartiality, and merit.
Section 4. Compensation.
A. Base Salary: Employer agrees to pay Employee an annual base salary of Three- Hundred Thousand Dollars ($300,000), payable in installments at the same time that the other executive employees of the Employer are paid.
B. This Agreement shall be automatically amended to reflect any salary adjustments that are provided or required by the Employer’s compensation policies to include all salary adjustments on the same basis as applied to the executive classification of employees.
C. In addition, consideration shall be given on an annual basis to an increase in compensation.
D. At any time during the term of the Agreement, Employer may, in its discretion, review and adjust the salary of the Employee, but in no event shall the Employee be paid less than the salary set forth in Section 4. A. of the Agreement except by mutual written agreement between Employee and Employer. Such adjustments, if any, shall be made pursuant to a lawful governing body action. In such event, Employer and Employee agree to provide their best efforts and reasonable cooperation to execute a new agreement incorporating the adjusted salary.
Section 5. Health, Disability and Life Insurance Benefits.
A. The Employer agrees to provide Employee a cafeteria health benefit of $1,200.00 per month.
3 B. The Employer agrees to put into force and to make required premium payments for long-term disability coverage for the Employee.
C. The Employer shall pay the amount of premium due for term life insurance in the amount of $250,000. The Employee shall name the beneficiary of the life insurance policy.
Section 6. Vacation, Sick and Military Leave.
A. Upon commencing employment, the Employee shall be credited with forty (40) accrued sick leave hours and forty (40) accrued vacation leave hours. In addition, beginning the first day of employment, Employee shall be eligible to accrue and use sick leave and vacation leave on an annual basis, at a minimum, at the highest rate provided or available to any other Executive employees, and under the same rules and provisions applicable to other Executive employees, including any leave buy-back programs.
B. The Employee is entitled to receive vacation leave, executive leave, sick leave, insurance and retirement benefits in accordance with those benefits provided to the Executive group of the City.
C. The Employee shall be entitled to military reserve leave time pursuant to state law and City policy.
Section 7. Vehicle Allowance.
The Employer agrees to pay to the Employee, during term of this Agreement and in addition to other salary and benefits herein provided the sum of $9,000.00 per year, payable at $750.00 per month, as a vehicle allowance to be used to purchase, lease, or own, operate and maintain a vehicle. The Employee shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regular replacement of said vehicle. The Employer shall reimburse the Employee at the IRS standard mileage rate for any business use of the vehicle beyond the greater National City area. For purposes of this Section, use of the car within the greater National City area is defined as travel to locations within a 50-mile radius of the National City Civic Center.
In lieu of receiving a vehicle allowance, the Employee may elect to have the use of an Employer furnished vehicle for the performance of official duties and commuting to and from work.
Employer will provide vehicle maintenance, fuel, and insurance for such vehicle.
Section 8. Retirement.
The Employer shall at the first permissible opportunity, enroll the Employee into the Public Employees’ Retirement System and to make all the appropriate contributions on the Employee’s behalf, for the required Employer share. Employee shall pay the entire employee share, which is 8% at this time and any changed rate during the term of this Agreement.
Section 9. General Business Expenses.
A. Employer agrees to budget for and to pay for professional dues and subscriptions of the Employee necessary for continuation and full participation in national, regional, state and
4 local associations, and organizations necessary and desirable for the Employee’s continued professional participation, growth, and advancement, and for the good of the Employer.
B. Employer agrees to budget for and pay travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions to adequately continue the professional development of Employee and to pursue necessary official functions for Employer, including but not limited to the ICMA Annual Conference, the League of California Cities, and such other national, regional, state and local governmental groups and committees in which Employee services as a member.
C. Employer also agrees to budget for and to pay for travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for the Employee’s professional development and for the good of the Employer.
D. Employer recognizes that certain expenses of a non-personal but job-related nature are incurred by Employee, and agrees to reimburse or to pay said general expenses. The Finance Director is authorized to disburse such moneys upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits.
E. The Employer acknowledges the value of having Employee participate and be directly involved in local civic clubs or organizations. Accordingly, Employer shall pay for the reasonable membership fees and/or dues to enable the Employee to become an active member in local civic clubs or organizations.
F. The Employer shall provide Employee with a computer, software, and cell phone required for the Employee to perform the job and to maintain communication. Upon termination of Employee’s employment, the equipment shall remain the property of the Employer and any mobile phone number may be transferred to the Employee.
Section 10. Termination.
For the purpose of this Agreement, termination shall occur when:
A. The majority of the Employer’s City Council votes to terminate the Employee at a duly authorized public meeting.
B. If the Employer, citizens or the legislature acts to amend any provisions of the state or local law pertaining to the role, powers, duties, authority, and responsibilities of the Employee’s position that substantially changes the form of government, the Employee shall have the right to declare that such amendments constitute termination.
C. If the Employer reduces the base salary, compensation or any other financial benefits of the Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this Agreement and will be regarded as a termination.
D. If the Employee resigns following an offer to accept resignation, whether formal or informal, by the Employer as representative of the majority of the governing body that the Employee resign, then the Employee may declare a termination as of the date of suggestion.
E. Breach of contract declared by either party with a 30-day cure period for either Employee or Employer. Written notice of a breach of contract shall be provided in accordance with the provisions of Section 18.
Section 11. Severance.
The Employee is an at-will employee, serving at the pleasure of the Employer's City Council. This Agreement, and the Employee's employment with the Employer, may be terminated with or
5 without cause by the Employer's City Council. In the event the Employee is terminated for cause as described in the last paragraph of this section, or voluntarily resigns his position with the Employer, then the Employee shall not be entitled to the payment of severance by the Employer.
In the event the Employee is terminated by the Employer other than for cause, and during such time that Employee is willing and able to perform his duties under this Agreement, then Employer agrees to pay severance at the rate called for in the City’s Executive Compensation plan. This severance shall be paid in one lump sum unless otherwise agreed to by the Employer and the Employee. In the event of severance, the Employee shall also be compensated for all accrued sick and vacation leave.
If the Employee is terminated because of a conviction of a felony, then the Employer is not obligated to pay severance under this section. If the Employee is convicted of a crime involving an abuse of office or position then, regardless of the term of the contract, if the Employee is terminated, any cash settlement, including severance, related to the termination received by Employee from Employer shall be fully reimbursed to the Employer.
Section 12. Resignation.
In the event that the Employee voluntarily resigns his position with the Employer, the Employee shall provide a minimum of thirty (30) days’ notice unless the parties agree otherwise in writing.
Section 13. Performance Evaluation.
A. Employer shall annually review the performance of the Employee in the Employee’s anniversary month subject to a process, form, criteria, and format for the evaluation which shall be mutually agreed upon by the Employer and Employee.
B. The annual evaluation process, at a minimum, must include the opportunity for both parties to:
1. Conduct a goal-setting session where the Employer and Employee meet first to discuss goals and objectives of both the past twelve (12) month performance period, as well as the upcoming twelve (12) month performance period,
2. Following the goal-setting discussion, prepare a written evaluation of goals and objectives for the past and upcoming year,
3. next meet and discuss the written evaluation of these goals and objectives, and
C. Present a written summary of the evaluation results to the Employee. The final written evaluation should be completed and delivered to the Employee within thirty (30) days of the evaluation meeting.
D. Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee shall at all times be conducted in closed session of the governing body and shall be considered confidential to the extent permitted by law. Nothing herein shall
6 prohibit the Employer or Employee from sharing the content of the Employee’s evaluation with their respective legal counsel.
E. In the event the Employer deems the evaluation instrument, format, and/or procedure is to be modified by the Employer and such modifications would require new or different performance expectations, then the Employee shall be provided a reasonable period of time to demonstrate such expected performance before being evaluated.
Section 14. Hours of Work.
It is recognized that the Employee must devote a great deal of time outside the normal office hours on business for the Employer, and to that end Employee shall be allowed to establish an appropriate work schedule, compatible with the normal business hours of the City of National City.
Section 15. Housing
Employee may live in an Apartment owned by the City at 923 “A” Avenue, National City, CA 91950 (Kimball House Apartment). If Employee opts to live in the Kimball House Apartment, a separate six- month lease will be executed between Employee and Employer.
Section 16. Outside Activities.
A. Disclosure and Acknowledgment: Employee has disclosed and acknowledged the following outside activities: No outside activities to disclose.
Should this present a conflict of interest or inability for the City Manager to provide full services to the City, he shall withdraw from such activities.
B. Notice and Consent: Employee shall give written notice to Council for Council’s approval of any new outside activities of Employee.
Section 17. Indemnification.
In accordance with federal, state or local law, Employer shall defend, save harmless and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the course and scope of Employee’s duties as City Manager, or resulting from the exercise of judgment or discretion in connection with the course and scope of performance of program duties or responsibilities, unless the act or omission involved willful or wanton conduct. In such cases, the Employee may request, and the Employer shall not unreasonably refuse, to provide independent legal representation at the Employer’s expense and the Employer may not unreasonably withhold approval. Legal representation provided by Employer for Employee shall extend until a final determination of the legal action, including any appeals brought by either party. The Employer shall indemnify Employee against any and all losses, damages, judgments, interest, settlements, fines, court costs, and other reasonable costs and expenses of legal proceedings, including attorney’s fees and any other liabilities incurred by, imposed upon, or suffered by such Employee in connection with or resulting from any claim, action, suit or proceeding, actual or threatened, arising out of or in connection with the performance of the
7 Employee in the course and scope of Employee’s duties. Any settlement of any claim must be made with prior approval of the Employer in order for indemnification, as provided in this Section, to be available.
Employee recognizes the Employer shall have the right to compromise and settle any claim or suit. Further, Employer agrees to pay all reasonable litigation expenses of Employee throughout the pendency of any litigation to which the Employee is a party, witness or advisor to the Employer. Such expense payments shall continue beyond Employee’s service to the Employer as long as litigation is pending. Further, Employer agrees to pay Employee reasonable consulting fees and travel expenses when Employee serves as a witness, advisor or consultant to Employer regarding pending litigation.
If Employee is convicted of a crime involving an abuse of his office or position, as defined in Government Code section 53243.4, then Employee shall fully reimburse Employer for any funds provided for Employee’s criminal defense, if any such funds were provided pursuant to or consistent with this Section. This paragraph shall not be construed as creating or implying an obligation by Employer to provide a criminal defense to Employee.
Section 18. Bonding
Employer shall bear the full cost of any bonds the Employee is required to obtain by any law or ordinance.
Section 19. Other Terms and Conditions of Employment.
A. The Employer shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of the Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the National City Municipal Code, or any other law.
B. Except as otherwise provide in this Agreement, the Employee shall be entitled to the highest level of benefits that are enjoyed by other appointed employees of the Employer as provided in the Municipal Code or by practice.
Section 20. Notices.
Notice pursuant to this Agreement shall be given by depositing in the custody of the United States Postal Service, postage prepaid, addressed as follows:
EMPLOYER: City of National City EMPLOYEE: Douglas Schulze c/o Mayor
1243 National City Boulevard 923 “A” Avenue
National City, CA 91950-4301, National City, CA 91950
Alternatively, notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of
8 personal service or as the date of deposit of such written notice in the course of transmission in the United States Postal Service.
Section 21. General Provisions.
A. Integration. This Agreement sets forth and establishes the entire understanding between the Employer and the Employee relating to the employment of the Employee by the Employer. Any prior discussions or representations by or between the parties are merged into and rendered null and void by this Agreement. The parties by mutual written agreement may amend any provision of this Agreement during the life of the Agreement. Such amendments shall be incorporated and made a part of this Agreement.
B. Binding Effect. This Agreement shall be binding on the Employer and the Employee as well as their heirs, assigns, executors, personal representatives and successors in interest.
C. Effective Date. This Agreement shall become effective on June 17, 2026.
D. Severability. The invalidity or partial invalidity of any portion of this Agreement will not affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if they have been executed by both parties subsequent to the expungement or judicial modification of the invalid provision.
E. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
F. Construction. The parties acknowledge and agree that (1) each party is of equal bargaining strength, (2) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (3) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (4) each party and such party’s counsel and advisors have reviewed this Agreement, (5) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (6) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written.
CITY OF NATIONAL CITY EMPLOYEE
By:
Ron Morrison, Mayor Douglas Schulze
APPROVED AS TO FORM:
9 Heidi A. Skinner, Interim City Attorney
[The Report is to be read aloud at an open meeting of the City Council as an Agenda Item prior to the execution of the employment agreement]
Oral Summary Report Outlining
the Salary and Other Compensation of the City Manager
Government Code Section 54953(d)(3)
The following is a summary of the salary and other compensation under the Employment Agreement to be received by the City Manager in accordance with the Executive Benefits package:
City Manager contract effective June 17, 2026, for a period of three years ending June 16, 2029 , unless sooner terminated by the Employer or Employee . The Agreement shall automatically be renewed on its anniversary date for a two -year term unless notice is given at least three months before the expiration date.
$300,000.00 annual salary, with automatic amendments to reflect salary adjustments provided or required by the City’s compensation policies for the Executive classification of employees. Further, annual compensation consideration will be given and the City ma y review and adjust salary during the agreement term.
A cafeteria health benefit of $1,200 per month to use for employer provided health, dental, vision and other available insurance programs.
City paid term life insurance in the amount of $250,000.
City-paid long-term disability coverage.
Either a City -furnished vehicle for official duties and commuting, with City -paid maintenance, fuel, and insurance, or a $750.00 per month vehicle allowance.
A credit of 40 accrued sick leave hours and 40 accrued vacation leave hours. In addition, the City Manager will be eligible to accrue and use sick leave and vacation leave at the highest rate provided or available to Executive employees.
Employee life insurance equivalent to the employee’s annual gross salary, up to a maximum of $250,000.
Enrollment into the Public Employees’ Retirement System and the City will make all appropriate contributions of the employer share of contributions during the term of the agreement.
The option to enter into a separate six -month lease for the City -owned Kimball House Apartment at 923 “A” Avenue, National City, CA 91950.
1 CALIFORNIA RESIDENTIAL LEASE AGREEMENT
THIS LEASE AGREEMENT hereinafter known as the "Lease" is entered into this ____ day of June, 2026, by and between The City of National City, with mailing address at 1243 National City Boulevard, National City, CA 91950, hereinafter known as the "Landlord" and Douglas Schulze and ___________________________, the "Tenants."
WHEREAS, the Landlord desires to lease the Property defined herein under the terms and conditions as set forth herein; and
WHEREAS, the Tenant(s) desires to lease the Property defined herein from the Landlord under the terms and conditions set forth herein.
NOW THEREFORE, for and in consideration of the covenants and obligations contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:
PROPERTY. The Landlord owns property and improvements located at 921 “A” Avenue, National City, CA 91950 (Kimball House Apartment).
LEASE TERM. This Lease shall commence on June _____, 2026, and end on December ______, 2026 (Term), unless otherwise terminated in accordance with the provisions of the Lease. Upon the end of the Term, Tenant shall vacate the Property and deliver the same to the Landlord unless the Lease is formally extended by the Landlord and the Tenant in a writing signed by both parties; or
RENT. The Tenant shall pay to Landlord the sum of $0.00 per month (Rent) for the duration of the Lease Team.
USE OF PROPERTY. The Property as defined herein shall be for the sole and exclusive use and occupation by the Tenant(s) and same’s exclusive family namely:
1. ;
2. ;
3. ;
4. ;
5. .
Any Guest(s) of the Tenants shall not be allowed to stay beyond 14 days without the consent of the Landlord. The Property shall be used solely and exclusively as a residence and single-family dwelling. The Property or any part of it shall not be used for any business, profession, vocation or trade of any kind. The Tenant(s) undertake to abide by any and all applicable laws, statutes and rules covering the Property.
CONDITION. The Tenant stipulates that The Property has been examined and that the Property is in good repair and is tenantable.
ASSIGNMENT. Under this Lease:
2 x Subletting Not Allowed. The Tenant acknowledges that this Lease is not transferrable and that the Tenant may not assign the Lease, any part of the Lease or any of the rights or obligations herein. The tenant shall not sublet, sublease or otherwise grant any other party any license or right in relation to the Property or this Lease. Any license, assignment sublease or agreement in violation of this clause shall be null and void with not legal force whatsoever.
☐ Subletting Allowed. Tenant shall have the right to sublet and grant a license to other individuals to use the Property or any part thereof ☐ with / ☐ without the prior written consent of the Landlord. In the event the Tenant shall sublet the Property, notice shall be given to the Landlord within ____ days of the SubTenant(s) name and address. In the event the SubTenant(s) violates any portion of this Lease, all liability shall be held against the Tenant.
RIGHT OF ENTRY. The Landlord shall have the right to enter the Property during normal working hours by providing at least 24-hours-notice in order for inspection, make necessary repairs, alterations or improvements, to supply services as agreed or for any reasonable purpose. The Landlord may exhibit the Property to prospective purchasers, mortgagees, or lessees upon reasonable notice.
ALTERATIONS AND IMPROVEMENTS. No alterations to or improvements on the Property shall be made by the Tenant without prior express consent of the Landlord to the same in writing.
A. Unauthorized Alterations or Improvements. In the event that the Tenant shall undertake alterations or improvements relating to the Property in violation of this section the same shall be considered a material breach of this Lease putting the Tenant in default. The Landlord may, upon the Landlord’s discretion, require the Tenant to undo the alterations or improvements and restore the Property to the its condition prior to any unauthorized alteration or improvement at the sole expense of the Tenant.
B. Ownership of Alterations and Improvements. In all cases of alterations, improvements, changes, accessories and the like that cannot be removed from the Property without destroying or otherwise deteriorating the Property or any surface thereof shall, upon creation, become the Landlord’s property without need for any further transfer, delivery or assignment thereof.
NON-DELIVERY OF POSSESSION. The Landlord shall deliver to the Tenant possession of the Property on or before the commencement of the Term of this Lease. Possession of the Property must be delivered no later than 10 days after the commencement of the Term of this Lease and the Tenant agrees to accept the same until such date despite the delay. Failure of the landlord to deliver possession of the Property within this period, shall automatically terminate the Lease. Thereafter the Parties shall have no further obligation to each other.
3 HAZARDOUS MATERIALS. Tenant shall not keep on the Property any item of a dangerous, flammable or explosive nature that might unreasonably increase the danger of fire or explosion on the Property or that might be considered hazardous or extra hazardous by any responsible insurance company.
UTILITIES. The Landlord shall provide the following utilities and services to the Tenant(s): water, sewer and electric. Any other utilities or services not mentioned will be the responsibility of the Tenant(s).
MAINTENANCE, REPAIR, AND RULES. The maintenance of the Property, minor repairs and servicing shall be the responsibility and sole expense of the Tenant, including but not limited to HVAC/air-conditioning units, plumbing fixtures (e.g. showers, bath tubs, toilets or sinks). For the entirety of the term of this Lease, the Tenant shall keep the property clean and in good repair. The Tenant shall:
A. Comply with any and all rules or regulations covering the Property including but not limited to local ordinances, health or safety codes, those set forth in the Master Lease, and Condominium or Homeowner’s associations, where applicable.
B. Dispose of any and all waste properly.
C. Not obstruct any structure intended for ingress, egress, passage or otherwise providing some type of access to, from or through the property.
D. Keep all windows, balconies, railings and other fixtures or structures visible from outside of the property free from laundry at all times.
E. Obtain consent of the Landlord prior to replacing or installing new deadbolts, locks, hooks, doorknobs and the like
F. Refrain from all activities causing unreasonable loud noises or otherwise unduly disturb neighbors and/or other residents.
PETS. Under this Lease:
x Pets Allowed. The Tenant shall be allowed to have 2 pets on the Property consisting of x Dogs ☐ Cats ☐ Fish ☐ Other _______________________.
The Landlord shall administer a fee of $ 0.00 per pet on the Property. Landlord shall be held harmless in the event any of the Tenant’s pets cause harm, injury, death, or sickness to another individual or animal. Tenant is responsible and liable for any damage or required cleaning to the Property caused by any authorized or unauthorized animal and for all costs Landlord may incur in removing or causing any animal to be removed.
☐ Pets Not Allowed. There shall be no animals permitted on the Property or in any common areas UNLESS said pet is legally allowed under the law in regard to assistance with a disability. Pets shall include, but not be limited to, any mammal, reptile, bird, fish, rodents, or insects on the Property.
4 QUIET ENJOYMENT. The Landlord warrants that the Tenant shall have quiet and peaceful enjoyment of the Property and hold the same free from molestation or interference from the Landlord or any other person or entity whose claim to the Property comes from the Landlord, subject to the terms and conditions of this Lease and compliance by the Tenant with the same.
INDEMNIFICATION. The Landlord shall not be liable for any injury to the Tenant(s) or any other persons or property entering the Property occurring within the Property during the Term of the Lease. Neither shall the Landlord be liable for any damage to the structure within which the Property is located or any part thereof. The Tenant hereby agrees to hold the Landlord harmless from and indemnify the Landlord for any and all claims or damage not arising solely from the Landlord’s acts, omission, fault or negligence.
DEFAULT. In the event that the Landlord breaches any of the terms and conditions of this Lease or any applicable laws, rules or codes, the Tenant may avail of any of the remedies available under the law. In the event that the Tenant breaches or fails to comply with any of the terms and conditions of this Lease or any applicable laws, rules or codes the Landlord shall afford the Tenant 10 days to remedy or rectify the same. This period shall commence on the day the Tenant receives Notice of such breach or non-compliance with the request to rectify the same. If the Tenant fails to comply or rectify the breach or if the breach cannot reasonably be rectified or remedied, the Tenant shall be in default. Upon the Tenant’s default, the Landlord may terminate the Lease by sending the notice of default and consequent termination of the lease to the Tenant and thereafter recover possession of the Property.
ABANDONMENT. In the event that the Tenants abandon the Property the Landlord may declare the Lease terminated, recover possession of the Property, enter the premises, remove the Tenant’s belongings and lease the same to another without incurring any liability to the Tenant for doing the same. In the event of the abandonment of the Property, the Landlord may recover from the Tenant unpaid rent until the Property is leased to another person or otherwise occupied by the Landlord or another under the Landlord’s right.
ATTORNEYS' FEES. In the event that Landlord should require the services of an attorney, file a suit or resort to other procedures in order to compel the Tenant’s compliance with the Tenant’s obligations, the terms of this Lease or other applicable laws, rules or codes, the Tenant agrees to reimburse all expenses incurred by the Landlord in doing the same.
COMPLIANCE WITH LAW. The Tenant undertakes to comply with any and all Federal or state laws, municipal or county ordinances, rules, regulations, codes and all other issuances from authorized government authorities respecting the Property and the Tenant’s occupation and use thereof.
SEVERABILITY. Should and provision of this Lease be found, for whatever reason, invalid or unenforceable, such nullity or unenforceability shall be limited to those
5 provisions. All other provisions herein not affected by such nullity or dependent on such invalid or unenforceable provisions shall remain valid and binding and shall be enforceable to the full extent allowed by law.
BINDING EFFECT. The terms, obligations, conditions and covenants of this Lease shall be binding on Tenant, the Landlord, their heirs, legal representatives and successors in interest and shall inure to the benefit of the same.
MODIFICATION. The parties hereby agree that this document contains the entire agreement between the parties and this Lease shall not be modified, changed, altered, or amended in any way except through a written amendment signed by all of the parties hereto.
NOTICE. All notices in relation to this Lease shall be delivered to the following addresses:
To the Tenant at the address:
921 “A” Avenue, National City, CA 91950;
and
To Landlord at the address:
1243 National City Boulevard, National City, CA 91950
PARKING. The Landlord:
x Shall provide 2 parking space(s) to the Tenants for a fee of $0.00 to be paid ☐ at the execution of this Lease ☐ on a monthly basis in addition to the rent. The parking space(s) are described as: ____________________.
☐ Shall not provide parking.
EARLY TERMINATION. The Tenant):
x Shall have the right to terminate this Lease at any time by providing at least ____ days’ written notice to the Landlord along with an early termination fee of $____.
During the notice period for termination, the Tenant(s) will remain responsible for the payment of rent.
☐ Shall not have the right to terminate this Lease before the end of the Term.
SMOKING POLICY. Smoking is:
☐ Permitted in the following areas: ____________________. x Prohibited on the Property.
DISPUTES. If a dispute arises during or after the term of this Lease between the Landlord and Tenant(s), they shall agree to hold negotiations amongst themselves, in "good faith", before any litigation.
6 RETALIATION. The Landlord is prohibited from making any type of retaliatory acts against the Tenant(s) including but not limited to restricting access to the Property, decreasing or cancelling services or utilities, failure to repair appliances or fixtures, or any other type of activity that could be considered unjustified.
EQUAL HOUSING. If the Tenant(s) possesses any impairment, mental or physical, the Landlord agrees to provide reasonable modifications to the Property in order to accommodate such impairments except in the case of modifications that would be too difficult or too expensive for the Landlord to provide. The Tenant(s) are encouraged disclose to the Landlord any impairment(s) that may be aided by reasonable modifications to allow the parties to identify the most beneficial modifications to the Property.
PROPERTY DEEMED UNINHABITABLE. If the Property is deemed uninhabitable due to damage beyond reasonable repair the Tenant(s) will be able to terminate this Lease by written notice to the Landlord. If said damage was due to the negligence of the Tenant(s), the Tenant(s) shall be liable to the Landlord for all repairs and for the loss of income due to restoring the property back to a livable condition in addition to any other losses that can be proved by the Landlord.
LEAD-BASED PAINT DISCLOSURE. If the Property or any part of it was constructed prior to 1978, the Landlord shall provide a disclosure of information on lead-based paint and/or lead-based paint hazards, the receipt of the same in the form entitled “LEAD-BASED PAINT DISCLOSURE” hereby acknowledged by the Tenant.
ENTIRE AGREEMENT. This Lease and, if any, attached documents are the complete agreement between the Landlord and Tenant concerning the Property. There are no oral agreements, understandings, promises, or representations between the Landlord and Tenant affecting this Lease. All prior negotiations and understandings, if any, between the parties hereto with respect to the Property shall be of no force or effect and shall not be used to interpret this Lease. No modification or alteration to the terms or conditions of this Lease shall be binding unless expressly agreed to by the Landlord and the Tenant in a written instrument signed by both parties.
IN WITNESS WHEREOF, the Landlord and Tenant have executed this Lease in multiple originals as of the undersigned date(s).
Landlord’s Signature ____________________________ Date _____________________
Print Name _______________________
Tenant’s Signature ____________________________ Date _____________________
Print Name _______________________
Tenant’s Signature ____________________________ Date _____________________
Print Name _______________________
7 REQUIRED LEASE DISCLOSURES &
ADDENDUMS IN CALIFORNIA
The following disclosures or addendums are either required for some or all residential lease agreements in California.
1. Asbestos Disclosure - for buildings built before 1979 with landlord knowledge of asbestos in the property.
2. Methamphetamine Contamination Disclosure - for properties where the landlord has knowledge or suspicion of methamphetamine production, use, or storage without remediation.
3. Mold Disclosure - for properties with known mold that may pose a health threat.
4. Demolition Permit Disclosure - for units with planned demolition during the lease term.
5. Military Ordnance Disclosure - for properties within 1 mile of known military testing sites.
6. Death in a Rental Unit Disclosure - for any property where material death has occurred in the past 3 years, excluding HIV or AIDS-related death.
7. Pest Control Disclosure - for units with pest control schedule or who use pesticides for infestations.
8. Shared Utility Arrangement Disclosure - for all units that share a meter with another unit or other location
9. Bed Bug Disclosure - for all units.
10. Flood Zone Disclosure - for any property in a known flood zone
11. Lead Based Paint Disclosure - for rental units built prior to 1978.
8 DISCLOSURE OF INFORMATION ON ASBESTOS
THIS AGREEMENT made and entered into between City of National City, “Landlord" and Douglas Schulze and ________________________________, Tenants”.
Tenant(s) is renting from Landlord the Property located at: 921 “A” Avenue, National City, CA 91950.
LANDLORD’S DISCLOSURE: (select one)
X This property may contain asbestos
____ This property contains asbestos
This hazardous substance is contained in some of the original building materials and in some of the products and materials used to maintain the property. Disturbance or damage to certain interior apartment surfaces may increase the potential exposure to these substances.
a) Tenant or the Tenant guest(s), employees and contractors shall not take or permit any action which in any way damages or disturbs the Premises or any part thereof, including, but not limited to:
i) piercing the surface of the ceiling by drilling or any other method; ii) hanging plants, mobiles, or other objects from the ceiling; iii) attaching any fixtures to the ceiling;
iv) allowing any objects to come in contact with the ceiling; v) permitting water or any liquid, other than ordinary steam condensation, to come into contact with the ceiling;
vi) painting, cleaning, or undertaking any repairs of any portion of the ceiling;
vii) replacing light fixtures;
viii) undertaking any activity which results in building vibration that may cause damage to the ceiling.
b) Tenant shall notify Landlord immediately in writing (i) if there is any damage to or deterioration of the ceiling in the Property or any portion thereof, including, without limitation, flaking, loose, cracking, hanging or dislodged material, water leaks, or stains in the ceiling, or (ii) upon the occurrence of any of the events described in Paragraph 1 above.
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
________________________________ ________________________________ Landlord Date Landlord Date
________________________________ ________________________________ Tenant Date Tenant Date
________________________________ ________________________________ Agent Date Agent Date
9 DISCLOSURE OF INFORMATION ON
METHAMPHETAMINE CONTAMINATION
THIS AGREEMENT made and entered into between City of National City, “Landlord" and Douglas Schulze and ________________________________, Tenants”.
Tenant(s) is renting from Landlord the Property located at: 921 “A” Avenue, National City, CA 91950.
LANDLORD’S DISCLOSURE: (select one)
____ Has been found to be contaminated above safe levels and is in the process of decontamination.
____ Has been found to be contaminated, but falls within safe levels after tests were conducted.
X Has no suspicion of contamination.
CERTIFICATION OF ACCURACY
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
________________________________ ________________________________ Landlord Date Landlord Date
________________________________ ________________________________ Tenant Date Tenant Date
________________________________ ________________________________ Agent Date Agent Date
10 DISCLOSURE OF INFORMATION ON MOLD
THIS AGREEMENT made and entered into between City of National City, “Landlord" and Douglas Schulze and ________________________________, Tenants”.
Tenant(s) is renting from Landlord the Property located at: 921 “A” Avenue, National City, CA 91950.
The Landlord has inspected the unit prior to lease and knows of no damp or wet building materials and knows of no mold or mildew contamination. Tenant is hereby notified that mold, however, can grow if the premises are not properly maintained or ventilated. If moisture is allowed to accumulate in the Property, it can cause mildew and mold to grow. It is important that Tenant regularly allow air to circulate in the Property. It is also important that Tenant keep the interior of the unit clean and that they promptly notify the Landlord of any leaks, moisture problems, and/or mold growth.
Tenant agrees to maintain the Property in a manner that prevents the occurrence of an infestation of mold or mildew in the premises. Tenant agrees to uphold this responsibility in part by complying with the following list of responsibilities:
1) Tenant agrees to keep the unit free of dirt and debris that can harbor mold.
2) Tenant agrees to immediately report to the Landlord any water intrusion, such as plumbing leaks, drips, or "sweating" 3) pipes.
4) Tenant agrees to notify owner of overflows from bathroom, kitchen, or unit laundry facilities, especially in cases where the
5) overflow may have permeated walls or cabinets.
6) Tenant agrees to report to the Landlord any significant mold growth on surfaces inside the premises.
7) Tenant agrees to allow the Landlord to enter the unit to inspect and make necessary repairs.
8) Tenant agrees to use bathroom fans while showering or bathing and to report to the Landlord any non-working fan.
9) Tenant agrees to use exhaust fans whenever cooking, dishwashing, or cleaning.
10) Tenant agrees to use all reasonable care to close all windows and other openings in the premises to prevent outdoor water
11) from penetrating into the interior unit.
12) Tenant agrees to clean and dry any visible moisture on windows, walls, and other surfaces, including personal Property, as
11 DISCLOSURE OF INFORMATION ON MOLD (CONT.)
13) soon as reasonably possible. (Note: Mold can grow on damp surfaces within 24 to 48 hours.)
14) Tenant agrees to notify the Landlord of any problems with the air conditioning or heating systems that are discovered
15) by the Tenant.
Tenant agrees to indemnify and hold harmless the Landlord from any actions, claims, losses, damages, and expenses, including, but not limited to, attorneys' fees that the Landlord may sustain or incur as a result of the negligence of the Tenant or any guest or other person living in, occupying, or using the premises.
LANDLORD’S DISCLOSURE: (select one)
____ Has been found to be contaminated above safe levels and is in the process of decontamination.
____ Has been found to be contaminated, but falls within safe levels after tests were conducted.
x Has no suspicion of contamination.
CERTIFICATION OF ACCURACY
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
________________________________ ________________________________ Landlord Date Landlord Date
________________________________ ________________________________ Tenant Date Tenant Date
________________________________ ________________________________ Agent Date Agent Date
12 DISCLOSURE OF INFORMATION ON PESTS
THIS AGREEMENT made and entered into between City of National City, “Landlord" and Douglas Schulze and ________________________________, Tenants”.
Tenant(s) is renting from Landlord the Property located at: 921 “A” Avenue, National City, CA 91950.
LANDLORD OBLIGATIONS. The Landlord will maintain the premises in a habitable condition and respond to written notices of infestations not caused by the Tenant's breach of this agreement. Landlord will provide Tenant with at least 24 hours' written notice prior to entering the unit for pest inspection or treatment, except in the event of an emergency.
Landlord discloses that, to the best of their knowledge, the Leased Premises is currently free of known, active infestations.
TENANT OBLIGATIONS.
• Sanitation: Tenant agrees to keep the premises in a neat, clean, and sanitary condition to prevent attracting pests.
• Immediate Notice: Tenant agrees to promptly notify the Landlord in writing of any suspected or confirmed pest infestation (including, but not limited to:
bed bugs, roaches, rodents, and termites).
• Cooperation: Tenant agrees to fully cooperate with pest control professionals, including preparing the unit (e.g., bagging clothing, moving furniture) and vacating the premises during treatments if required.
CERTIFICATION OF ACCURACY
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
________________________________ ________________________________ Landlord Date Landlord Date
________________________________ ________________________________ Tenant Date Tenant Date
________________________________ ________________________________ Agent Date Agent Date
13 DISCLOSURE OF SHARED UTILITIES ARRANGEMENTS
THIS AGREEMENT made and entered into between City of National City, “Landlord" and Douglas Schulze and ________________________________, Tenants”.
Tenant(s) is renting from Landlord the Property located at: 921 “A” Avenue, National City, CA 91950.
LANDLORD’S DISCLOSURE:
X This rental unit shares the following utilities with another unit or common area:
____ Electricity
X Water
____ Gas
____ Sewage
____ Other: _________________________________________
X This lease uses the following method for calculating utility charges between Tenant(s):
____ Home Square Footage
____ Number of Tenants
X Even Split Between Tenants
Other:
X Tenant agrees to pay the monthly utility charge to Landlord.
CERTIFICATION OF ACCURACY
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
________________________________ ________________________________ Landlord Date Landlord Date
________________________________ ________________________________ Tenant Date Tenant Date
________________________________ ________________________________ Agent Date Agent Date
14 FLOOD ZONE DISCLOSURE
THIS AGREEMENT made and entered into between City of National City, “Landlord" and Douglas Schulze and ________________________________, Tenants”.
Tenant(s) is renting from Landlord the Property located at: 921 “A” Avenue, National City, CA 91950.
LANDLORD’S DISCLOSURE:
This property is located in a known flood zone, putting it at a higher risk of flooding.
Landlord and Landlord’s insurer are NOT responsible for personal loss occurring at this rental unit due to flooding or other hazards. The property is located in Zone X on the San Diego County Flood Insurance Rate Map (FIRM). Zone X indicates a minimal risk and relates to properties situated entirely outside the 500-year floodplain.
It is recommended that Tenant pursues renter’s insurance and flood insurance.
Information about hazards can be found on the California Office of Emergency Services’ website at https://myhazards.caloes.ca.gov
The above notice is pursuant to section 1632 of the Civil Code and absolves Landlord of liability to flood-related damages.
CERTIFICATION OF ACCURACY
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
________________________________ ________________________________ Landlord Date Landlord Date
________________________________ ________________________________ Tenant Date Tenant Date
________________________________ ________________________________ Agent Date Agent Date
15 DISCLOSURE OF INFORMATION ON BED BUGS
THIS AGREEMENT made and entered into between City of National City, “Landlord" and Douglas Schulze and ________________________________, Tenants”.
Tenant(s) is renting from Landlord the Property located at: 921 “A” Avenue, National City, CA 91950.
BED BUG APPEARANCE. Bed bugs have six legs. Adult bed bugs have flat bodies about 1/4 of an inch in length. Their color can vary from red and brown to copper colored. Young bed bugs are very small. Their bodies are about 1/16 of an inch in length. They have almost no color. When a bed bug feeds, its body swells, may lengthen, and becomes bright red, sometimes making it appear to be a different insect. Bed bugs do not fly. They can either crawl or be carried from place to place on objects, people, or animals. Bed bugs can be hard to find and identify because they are tiny and try to stay hidden.
LIFE CYCLE AND REPRODUCTION. An average bed bug lives for about 10 months.
Female bed bugs lay one to five eggs per day. Bed bugs grow to full adulthood in about 21 days. Bed bugs can survive for months without feeding.
BED BUG BITES. Because bed bugs usually feed at night, most people are bitten in their sleep and do not realize they were bitten. A person’s reaction to insect bites is an immune response and so varies from person to person. Sometimes the red welts caused by the bites will not be noticed until many days after a person was bitten, if at all. Common signs and symptoms of a possible bed bug infestation:
1) Small red to reddish brown fecal spots on mattresses, box springs, bed frames, mattresses, linens, upholstery, or walls.
2) Molted bed bug skins, white, sticky eggs, or empty eggshells. 3) Very heavily infested areas may have a characteristically sweet odor. 4) Red, itchy bite marks, especially on the legs, arms, and other body parts exposed while sleeping. However, some people do not show bed bug lesions on their bodies even though bed bugs may have fed on them.
For more information, see the Internet Web sites of the United States Environmental Protection Agency and the National Pest Management Association.
CERTIFICATION OF ACCURACY. The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
________________________________ ________________________________ Landlord Date Landlord Date
________________________________ ________________________________ Tenant Date Tenant Date
________________________________ ________________________________ Agent Date Agent Date
16 DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND/OR LEAD-BASED
PAINT HAZARDS LEAD WARNING STATEMENT
Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, lessors must disclose the presence of known lead-based paint and/or lead- based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead poisoning prevention.
Lessor’s Disclosure
a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
i) X Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
b) It is assumed, due to the age of the building, that lead-based paint is present.
However, all painted areas have been repainted with non-lead-based paint and all painted walls, ceilings, and other surfaces have thus been encapsulated. i) _____ Lessor has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
c) Records and reports available to the lessor (check (i) or (ii) below):
i) ______ Lessor has provided the lessee with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents below).
_________________________________________________________________________________ _________________________________________________________________________________ ii) _____ Lessor has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.
Lessee’s Acknowledgment (initial)
d) ________ Lessee has received copies of all information listed above. e) ________ Lessee has received the pamphlet Protect Your Family from Lead in Your Home.
Agent’s Acknowledgment (initial)
f) ________ Agent has informed the lessor of the lessor’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
________________________________ ________________________________ Lessor Date Lessor Date
________________________________ ________________________________ Lessee Date Lessee Date
________________________________ ________________________________ Agent Date Agent Date
RESOLUTION NO. 2026 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA,
APPOINTING DOUGLAS SCHULZE AS CITY MANAGER AND AUTHORIZING THE MAYOR
TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND DOUGLAS SCHULZE EFFECTIVE JUNE 17, 2026.
WHEREAS, on April 18, 2025, the City Council and then City Manager Ben Martinez mutually agreed that Mr. Martinez would step down from his position, effective immediately, resulting in a vacancy in the office of City Manager; and
WHEREAS, the City of National City commenced the recruitment process to fill the City Manager position but, on April 22, 2025, the City Council appointed Scott Huth to serve as Interim City Manager and fill the position on an interim basis until such time as a permanent appointment was made; and
WHEREAS, following the expiration of Mr. Huth’s service time pursuant to CalPERS regulations, the City Council appointed Police Chief Alejandro Hernandez to serve as Acting City Manager and subsequently appointed Director of Public Works/City Engineer Stephen Manganiello to serve as Acting City Manager; and
WHEREAS, following the completion of the recruitment process, the City Council has selected Douglas Schulze to be the City Manager.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Douglas Schulze is hereby appointed to the position of City Manager of the City of National City, effective June 17, 2026.
Section 2: In consideration of Mr. Schulze’s acceptance of the appointment as City Manager for the City of National City, the City Council hereby approves the following employment terms and conditions:
A. Commencement of Employment
June 17 , 202 6 is hereby designated as the date of commencement of M r.
Schulze’s duties to serve as City Manager.
B. Salary/Compensation
The base salary to be paid to Mr. Schulze for his services as City Manager shall be $300,000.00 annually with automatic amendments to reflect salary adjustments provided to the Executive Group of the City. In addition, consideration will be given on an annual basis to an increase in compensation during the agreement term. Further, Mr. Schulze will receive either a City-provided vehicle or $750.00 per month for vehicle allowance payable in accordance with the City’s customary payroll practices.
C. Housing
Mr. Schulze may elect to live in an apartment owned by the City at 923 “A” Avenue, N ational City, CA 91950 (Kimball House Apartment) , subject to execution of a lease negotiated and executed by the Director of Community Development.
D. Benefits
In addition to base salary, Mr. Schulze shall receive such other benefits as are provided to the Executive Group of the City, including holidays, vacation leave, executive leave, sick leave, and insurance and retirement benefits. In addition, Mr. Schulze shall receive a one-time credit of 40 accrued sick leave hours and 40 accrued vacation leave hours.
E. Reimbursable Expenses
City payment or reimbursement for professional dues and subscriptions, professional travel and training, reasonable job -related business expenses, local civic organization dues, and City -provided equipment necessary to perform the position.
F. Severance
If terminated by the City other than for cause, the City Manager will receive severance at the rate provided in the City’s Executive Compensation plan, plus payout of accrued sick and vacation leave, as provided in the Agreement.
Section 3: The Mayor is hereby authorized to execute an Employment Agreement between the City of National City and Douglas Schulze, attached to the Agenda Report as Exhibit A, as City Manager with an initial term of three (3) years, unless sooner terminated as set forth in the agreement. Said agreement is on file in the office of the City Clerk.
Section 4: The Director of Community Development is hereby authorized to negotiate and execute a lease with Mr. Schulze for the apartment owned by the City of National City at 923 “A” Avenue, National City, CA 91950.
PASSED and ADOPTED this 16th day of June, 2026
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Heidi Skinner, Interim City Attorney
AGENDA REPORT
Department: Human Resources
Prepared by: Rex Sanders, Interim Human Resources Director Meeting Date: Tuesday, June 16, 2026
Approved by: Stephen Manganiello, Acting City Manager
SUBJECT:
City Attorney Employment Agreement
RECOMMENDATION:
Adopt a Resolution entitled, “Resolution of the City Council of the City of National City, California, Appointing Heidi Skinner as City Attorney and Authorizing the Mayor to Execute an Employment Agreement Between the City of National City and Heidi Skinner Effective June 17, 2026.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
On December 31, 2025, the employment agreement with City Attorney Barry Schultz expired. To ensure the continuity of legal services and maintain City operations, the City Council commenced the recruitment process to fill the City Attorney position and, on February 3, 2026, selected Heidi Skinner to be the Interim City Attorney and fill the position on an interim basis until such time as a permanent appointment is made. Following the completion of the recruitment process, the City Council has selected Heidi Skinner to be the City Attorney.
It is the City’s practice to authorize an employment agreement for certain executive positions, including the City Attorney position, in order to formally establish compensation, duties, and terms of employment. The City Council desires to appoint and enter into an employment agreement with Heidi Skinner as the City’s City Attorney.
The specific terms of the Employment Agreement are set forth in the attached “Oral Summary Report Outlining the Salary and Other Compensation of the City Attorney.” The Summary is a requirement of the Brown Act (Government Code Section 54953(d)(3)), and must be read aloud into the record at a City Council Meeting.
FINANCIAL STATEMENT:
Funding for this position is included in the fiscal year 2026 -27 adopted budget for City Attorney Personnel Services. No additional appropriations are required . The employment agreement provides for a base salary of $265,000 annually as well as certain other benefits and allowances specific to this position or as provided to all members of the Executive Group of the City.
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Not Applicable
ENVIRONMENTAL REVIEW:
This is not a project under CEQA , and is therefore , not subject to environmental review.
CCR15378; PRC 21065.
PUBLIC NOTIFICATION:
The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A - Agreement
Exhibit B - Oral Summary Report Outlining the Salary and Other Compensation Exhibit C - Resolution
EMPLOYMENT AGREEMENT
CITY ATTORNEY
TABLE OF CONTENTS
Page
Introduction 1
Section 1 Term 1
Section 2 Duties and Authority 1
Section 3 Compensation 1
Section 4 Health, Disability and Life Insurance Benefits 1
Section 5 Vacation, Sick and Military Leave 1
Section 6 Monthly Vehicle Allowance 2
Section 7 Retirement 2
Section 8 General Business Expenses 2
Section 9 Termination 3
Section 10 Resignation 3
Section 11 Severance
Section 12 Performance Evaluation 3
Section 13 Hours of Work 3
Section 14 Outside Activities 3
Section 15 Indemnification 4
Section 16 Bonding 4
Section 17 Other Terms and Conditions of
Employment 4
Section 18 Notices 4
Section 19 General Provisions 5
1 2026 Employment Agreement
City Attorney
EMPLOYMENT AGREEMENT
THIS AGREEMENT made and entered into this 16 th day of June , 2026, by and between the City of National City, a municipal corporati on (hereinafter called “Employer”), and Heidi Skinner (hereinafter called “Employee”), an individual who has the education, training and experience in legal issues involving local government, and who is a member in good standing of the State Bar of California, both of whom agree as follows:
Section 1 Term.
This Agreement shall remain in full force and effect for a period of three (3) years from June 17, 2026 through June 16, 2029, unless sooner terminated by the Employer or Employee as provided in Section 9 or 10 of this Agreement.
The term of this Agreement may be extended for an additional two (2) years upon mutual agreement of the parties in writing.
Section 2 Duties and Authority.
Employer agrees to employ Heidi Skinner as City Attorney, on an at -will basis, to perform the functions and duties specified in the National City Municipal Code and the California Government Code, and to perform other legally permissible and proper duties and functions, commencing on June 17, 2026.
Section 3 Compensation.
A. Base Salary: Employer agrees to pay Employee an annual base salary of Two Hundred Sixty-Five Thousand Dollars ($265,000.00) , payable in installments at the same time that the other executive employees of the Employer are paid . Employer agrees to pay Employee a 4% annual increase after years 1 and 2 upon satisfactory annual reviews.
B. This Agreement shall be re-opened to discuss compensation and benefits if, and at the time, managers or executives receive any increase in compensation or benefits.
C. Beginning January 1, 2027, consideration shall be given on an annual basis to increase salary based upon increases in the Consumer Price Index (“CPI”), as that term is defined at Government Code section 3511.1(b). Any increase in salary shall depend upon the re sults of the performance evaluation conducted under the provisions of Section 12 of this Agreement.
D. Deferred Compensation: Employer shall provide seven- thousand five -hundred ($7,500) annually to Employee’s selected deferred compensation plan. This payment shall be made each January in years 2027, 2028, and 2029.
Section 4 Health, Disability and Life Insurance Benefits.
A. The Employer agrees to provide Employee a cafeteria health benefit of $1,200.00 per month.
B. The Employer agrees to put into force and to make required prem ium payments for long-term disability coverage for the Employee.
C. The Employer shall pay the amount of premium due for term life insurance in the amount of $250,000. The Employee shall name the beneficiary of the life insurance policy.
Section 5 Vacation, Sick and Military Leave.
2 2026 Employment Agreement
City Attorney
A. Upon commencing employment as City Attorney, the Employee shall be credited with forty (40) accrued sick leave hours and forty (40) accrued vacation leave hours. In addition, the Employee shall accrue sick, vacation leave, and other paid leave on an annual basis at the rate provided to Executive employees.
B. The Employee is entitled to receive vacation leave, executive leave, sick leave, insurance and retirement benefits in ac cordance with those benefits provided to the Executive group of the City. In the event the Employee’s employment is terminated, either voluntarily or involuntarily, the Employee shall be compensated for all unused vacation and sick leave in accordance with the Employer’s customary practice for Executive employees.
Section 6 Monthly Vehicle Allowance.
The Employer agrees to pay to the Employee, during term of this Agreement and in addition to other salary and benefits herein provided the sum of $9,000.00 per year, payable at $750.00 per month, as a vehicle allowance to be used to purchase, lease, or own, operate and maintain a vehicle. The Employee shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regul ar replacement of said vehicle. The Employer shall reimburse the Employee at the IRS standard mileage rate for any business use of the vehicle beyond the greater National City area. For purposes of this Section, use of the car within the greater National City area is defined as travel to locations within a 50-mile radius of the National City Civic Center.
Section 7 Retirement.
The Employer agrees to enroll the Employee into the Public Employees’ Retirement System and to make all the appropriate contributions on the Employee’s behalf, for the required Employer share. Employee shall pay the entire employee share, which is 8% at this time and any changed rate during the term of this Agreement. Employee shall pay an additional 1% of the required Employer’s normal cost share, in line with the retirement costs paid by other CalPERS classic plan member Executive employees.
Section 8 General Business Expenses.
A. Employer agrees to budget for and to pay for professional dues and subscriptions of the Employee necessary for continuation and full participation in national, regional, state and local associations, and organizations necessary and desirable for the Employee’s c ontinued professional participation, growth, and advancement, and for the good of the Employer.
B. Employer agrees to budget for and to pay for travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions to adequately continue the professional development of Employee and to pursue necessary official functions for Employer, including but not limited to the League of California Cities, and such other national, regional, state and local governmental groups and committees in which Employee serves as a member.
C. Employer also agrees to budget for and to pay for travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for the Employee’s professional development and for the good of the Employer.
D. Employer agrees to pay Employee’s state bar dues during the term of this Agreement.
3 2026 Employment Agreement
City Attorney
E. Employer recognizes that certain expenses of a non- personal but job- related nature are incurred by Employee, and agrees to reimburse o r to pay said general expenses.
Finance Director is authorized to disburse such moneys upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits.
F. The Employer acknowledges the value of having Employee participate and be directly involved in local civic clubs or organizations. Accordingly, Employer shall pay for the reasonable membership fees and/or dues to enable the Employee to become an active member in local civic clubs or organizations.
G. The Employer shall provide Employee with a computer, software, fax/modem, and cell phone required for the Employee to perform the job and to maintain communication.
Section 9 Termination.
For this Agreement, termination shall occur when:
A. The majority of the Employer’s City Council votes to terminate the Employee at a duly authorized public meeting.
B. If the Employer, citizens or legislature acts to amend any provisions of the state or local law pertaining to the role, powers, duties, authority, and responsibilities of the Employee’s position that substantially changes the form of government, the Employee shall have the right to declare that such amendments constitute termination.
C. If the Employer reduces the base salary, compensation or any other financi al benefits of the Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this Agreement and will be regarded as a termination.
D. If the Employee resigns following an offer to accept resignation, whethe r formal or informal, by the Employer as representative of the majority of the governing body that the Employee resign, then the Employee may declare a termination as of the date of suggestion.
E. Breach of contract decla red by either party with a 30- day cure period for either Employee or Employer. Written notice of a breach of contract shall be provided in accordance with the provisions of Section 18.
Section 10 Resignation.
If the Employee voluntarily resigns her position with the Employer, the Employee s hall provide a minimum of thirty (30) days’ notice unless the parties agree otherwise.
Section 11 Severance.
The Employee is an at -will employee, serving at the pleasure of the Employer’s City Council. This Agreement, and the Employee’s employment with the Employer, may be terminated with or without cause by the Employer’s City Council. In the event the Employee is terminated for cause as described in the last paragraph of this s ection, or voluntarily resigns her position with the Employer, then the Employee shall not be entitled to the payment of severance by the Employer.
In the event the Employee is terminated by the Employer other than for cause, and during such time that the Employee is willing and able to perform her duties under this Agreement, then Employer agrees to pay severance equal to one year’s base salary at the current rate of pay. This severance shall be paid in one lump sum unless otherwise agreed to by the Employer and the Employee. This severance shall include the Employee’s continued participation in the
4 2026 Employment Agreement
City Attorney
Employer’s healthcar e plan for a period of one (1) year after her separation from City Employment. The value of the City’s contribution to the cost of health care shall not exceed the established contribution for Executive employees as of the date of the Employee’s separation.
In the event of severance, the Employee shall also be compensated for all accrued sick and vacation leave.
If the Employee is terminated because of a conviction of a felony, then the Employer is not obligated to pay severance under this section. If the Employee is convicted of a crime involving an abuse of office or position then, regardless of the term of the contract, if the Employee is terminated, any cash settlement, including severance, related to the termination received by Employee from Employer shall be fully reimbursed to the Employer.
Section 12 Performance Evaluation.
Employer may annually review the performance of the Employee in the Employee’s anniversary month subject to a process, form, criteria, and format for the evaluation which shall be mutually agreed upon by the Employer and Employee. The process at a minimum may include the opportunity for both parties to: (1) prepare a written evaluation, (2) meet and discuss the evaluation , and ( 3) present a written summary of the evaluation results. The final written evaluation should be completed and delivered to the Employee within thirty ( 30) days of the evaluation meeting.
Section 13 Hours of Work.
It is recognized that the Employee must devote a grea t deal of time outside the normal office hours on business for the Employer, and to that end Employee shall be allowed to establish an appropriate work schedule, compatible with the normal business hours of the City of National City.
Section 14 Outside Activities.
A. Disclosure and Acknowledgment: Employee has disclosed and acknowledged the following outside activities: Transportation Research Board, Member of the C ommittee on Safety, Risk Management, and Tor t Liability (AQL17) ; Instructor Tech Transfer, Institute of Transportation Studies at the University of California Berkel ey – for TE -56 “Meeting the Challenges of Transportation Liability and Risk Management ”; and principal at Transportation Litigation Consulting, LLC. Should these activities present a conflict of interest or inability for the City Attorney to provide full service to the City, she will withdraw from such activities.
B. Notice and Consent: Employee shall give written notice to Council for Council’s approval of any new outside activities of Employee.
Section 15 Indemnification.
In accordance with federal, state or local law, Employer shall defend, save harmless and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the course and scope of the performance of Employee’s duties as City Attorney, or resulting from the exercise of judgment or discretion in connection with the course and scope of performance of program duties or responsibilities, unless the act or omission involved willful or wanton conduct. In such cases, the Employee may request and the Employer shall not unreasonably refuse to provide independent legal representation at the Employer’s expense, and
6 2026 Employment Agreement
City Attorney
Alternatively, notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as the date of deposit of such written notice in the course of transmission in the United States Postal Service.
Section 19 General Provisions.
A. Integration. This Agreement sets forth and establishes the entire understanding between the Employer and the Employee relating to the employment of the Employee by the Employer. Any prior discussions or representations by or between the part ies are merged into and rendered null and void by this Agreement. The parties by mutual written agreement may amend any provision of this Agreement during the life of the Agreement. Such amendments shall be incorporated and made a part of this Agreement.
B. Binding Effect . This Agreement shall be binding on the Employer and the Employee as well as their heirs, assigns, executors, personal representatives and successors in interest.
C. Effective Date. This Agreement shall become effective on June 17, 2026.
D. Severability. The invalidity or partial invalidity of any portion of this Agreement will not effect the va lidity of any other provision. In the event that any provision of this Agreement is held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if they have been executed by both parties subsequent to the expungement or judicial modification of the invalid provision.
E. Applicable Law . This Agreement shall be governed by and construed in accordance with the laws of the State of California.
F. Construction. The parties acknowledge and agree that (1) each party is of equal bargaining strength, (2) each party has actively participated in the drafting, preparation a nd negotiation of this Agreement, (3) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters cont emplated under this Agreement, (4) each party and such party’s counsel and advisors have reviewed this Agreement, (5) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (6) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written.
CITY OF NATIONAL CITY
By: _____________________________
Ron Morrison, Mayor
EMPLOYEE
________________________________
Heidi Skinner
7 2026 Employment Agreement
City Attorney
APPROVED AS TO FORM:
________________________________
Richard E. Romero
Assistant City Attorney
[The Report is to be read aloud at an open meeting of the City Council as an Agenda Item prior to the execution of the employment agreement]
Oral Summary Report Outlining
the Salary and Other Compensation of the City Attorney
Government Code Section 54953(d)(3)
The following is a summary of the salary and other compensation under the Employment Agreement to be received by the City Attorney in accordance with the Executive Benefits package:
City Attorney contract effective June 17, 2026, for a period of three years ending June 16, 2029, unless sooner terminated by the Employer or Employee and includes a compensation/benefits reopener if managers or executives receive increases, and it also provides annual CPI-based salary consideration beginning January 1, 2027.
$265,000.00 Annual Salary with an annual increase of 4% after years 1 and 2 upon satisfactory annual evaluations.
A cafeteria health benefit of $1,200 per month to use for employer provided health, dental, vision and other available insurance programs.
$750.00 per month for Vehicle Allowance.
$7,500 annual City contribution to a deferred compensation retirement account. A credit of 40 accrued sick leave hours and 40 accrued vacation leave hours. In addition, the City Attorney will be eligible to accrue and use sick leave and vacation leave at the highest rate provided or available to Executive employees.
City-paid term life insurance in the amount of $250,000.
Enrollment into the Public Employees’ Retirement System and the City will make all appropriate contributions of the employer share of contributions during the term of the agreement.
City-paid long-term disability coverage.
RESOLUTION NO. 2026 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA,
APPOINTING HEIDI SKINNER AS CITY ATTORNEY AND AUTHORIZING THE MAYOR TO
EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND HEIDI SKINNER EFFECTIVE JUNE 17, 2026.
WHEREAS, the employment agreement with City Attorney Barry Schultz expired on December 31, 2025; and
WHEREAS, the City of National City commenced the recruitment process to fill the City Attorney position but , on February 3, 2026, the City Council selected Heidi Skinner to be the Interim City Attorney and fill the position on an interim basis until such time as a permanent appointment is made; and
WHEREAS, following the completion of the recruitment proces s, the City Council has selected Heidi Skinner to be the City Attorney.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: Heidi Skinner is hereby appointed to the position of City Attorney of the City of National City, effective June 17, 2026.
Section 2: In consideration of Ms. Skinner’s acceptance of the appointment as City Attorney for the City of National City, the City Council hereby approves the following employment terms and conditions:
A. Commencement of Employment
June 17 , 202 6 is hereby designated as the date of commencement of M s.
Skinner’s duties to serve as City Attorney.
B. Salary/Compensation
The base salary to be paid to Ms. Skinner for her services as City Attorney shall be $265,000.00 annually with a 4% annual increase after years 1 and 2 upon satisfactory annual evaluations. In addition, Ms. Skinner will receive $750.00 per month for vehicle allowance payable in accordance with the City’s customary payroll practices.
C. Benefits
In addition to base salary, Ms. Skinner shall receive such other benefits as are provided to the Executive Group of the City, including holidays, vacation leave, executive leave, sick leave, and insurance and retirement benefits. Further, she will receive an annual City contribution of $7,500 to a deferred compensation account and a one -time credit of 40 sick leave hours and 40 vacation leave hours.
D. Reimbursable Expenses
City payment or reimbursement for professional dues and subscriptions, professional travel and training, state bar dues, reasonable job -related business expenses, local civic organization dues, and City-provided equipment necessary to perform the position.
E. Severance
If terminated by the City other than for cause, the City Attorney will receive severance equal to one year’s base salary, continued City healthcare contribution for one year subject to the Executive employee contribution cap, and payout of accrued sick and vacation leave, as provided in the Agreement.
Section 3: The Mayor is hereby authorized to execute an Employment Agreement between the City of National City and Heidi Skinner, attached to the Agenda Report as Exhibit A, as City Attorney with an initial term of three (3) years, unless sooner terminated as set forth in the agreement. Said agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 16th day of June, 2026
Ron Morrison, Mayor
ATTEST:
Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:
Richard E. Romero, Assistant City Attorney