2021 Feb 16 - CC PACKETAGENDA
EL SEGUNDO CITY COUNCIL
6:00 PM Regular Session
February 16, 2021
DUE TO THE COVID-19 EMERGENCY, THIS
MEETING WILL BE CONDUCTED PURSUANT TO THE GOVERNOR'S
EXECUTIVE ORDER N-29-20.
TELECONFERENCE VIA ZOOM MEETING
MEETING ID: 947 6437 2732
PIN: 656607
PUBLIC ADVISORY.
THE CITY COUNCIL CHAMBER WILL NOT BE OPEN TO THE PUBLIC
Drew Boyles, Mayor
Chris Pimentel, Mayor Pro Tern
Carol Pirsztuk, Councilmember
Scot Nicol, Councilmember
Lance Giroux, Councilmember
Tracy Weaver, City Clerk
Matthew Robinson, City Treasurer
Executive Team
Scott Mitnick, City Manager
Barbara Voss, Deputy City Manager
Bill Whalen, Police Chief
Sam Lee, Development Services Director
Elias Sassoon, Public Works Director
Melissa McCollum, Community Services Director
Mark Hensley, City Attorney
Joe Lillio, Chief Financial Officer
Chris Donovan, Fire Chief
Donna Peter, HR Consultant
Charles Mallory, Info. Tech. Director
MISSION STATEMENT:
"Provide a great place to live, work, and visit."
VISION STATEMENT:
"A hub for innovation where big ideas take off."
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How Can Members of the Public Observe and Provide Public Comments?
• Residents can watch the meeting live via Spectrum Channel 3 and 22, AT&T U-
Verse Channel 99 and/or El Segundo TV at YouTube.com.
• Access remotely via Zoom from a PC, Mac, iPad, iPhone, or Android device or
by phone. Use URL https://zoom.us/094764372732/ and enter PIN: 656607 or
visit www.zoom.us on device of choice, click on "Join a Meeting" and enter
meeting ID: 94764372732 and PIN: 656607.
• Join by phone at 1-669-900-9128 and enter meeting ID and PIN.
NOTE: Your phone number is captured by the Zoom software and is
subject to the Public Records Act, dial *67 BEFORE dialing in to remain
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• Note that you will be placed in a "listen only" mode and your video feed will not
be shared with City Council or members of the public.
• For Public Communications and comments during Public Hearings, please notify
meeting host by raising your virtual hand (see hand icon at bottom of screen) and
you will be invited to speak. (If you do not wish for your name to appear on
the screen, then use the drop -down menu and click on "rename" to rename
yourself "anonymous")
• Do not simultaneously use a microphone through Zoom and a
cellphone/telephone, this combination results in audio problems.
• For electronic public comments on a specific agenda item, submit comments to
the following e-mail address, with a limit of 150 words and accepted up until 30
minutes prior to the meeting: PUBLICCOMMUNICATIONSCCDelsegundo.org in
subject line please state the meeting date and item number. Depending on
volume of communications, emails will be read to Council during public
communications.
• For Public Hearings: written communications will be accepted via email at
PUBLICCOMMUNICATIONS(cD.elsegundo.org both before the meeting and
during open period of the Public Hearing.
• All written communication, documents, email addresses of attendees captured by
Zoom software will be considered a public document subject to possible posting
on the City's website and are subject to disclosure under the Public Records Act.
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Additional Information:
The City Council, with certain statutory exceptions, can only take action upon properly
posted and listed agenda items. Any writings or documents given to a majority of City
Council regarding any matter on this agenda that the City received after issuing the
agenda packet are available for public inspection in the City Clerk's Office during normal
business hours. Such documents may also be posted on the City's website at
www.elsegund_o.or and additional copies will be available at the City Council meeting.
Unless otherwise noted in the agenda, the public can only comment on City -related
business that is within the jurisdiction of the City Council and/or items listed on the
agenda during the Public Communications portions of the Meeting. Additionally,
members of the public can comment on any Public Hearing item on the agenda during
the Public Hearing portion of such item. The time limit for comments is five (5) minutes
per person.
Before speaking to the City Council, please state: your name, residence, and
organization/group you represent, if desired. Please respect the time limits.
In compliance with the Americans with Disabilities Act, if you need special
assistance to participate in this meeting, please contact the City Clerk's Office at
310-524-2305. Notification 48 hours prior to the meeting will enable the City to
make reasonable arrangements to ensure accessibility to this meeting.
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, FEBRUARY 16, 2021 - 6:00 P.M.
REGULAR SESSION
CALL TO ORDER
INVOCATION — Pastor Rob McKenna, Bridge Church
PLEDGE OF ALLEGIANCE — Mayor Pro Tern Pimentel
ROLL CALL
PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per
person, 30-minute limit total) Individuals who have received value of $50 or more to
communicate to the City Council on behalf of another, and employees speaking on
behalf of their employer, must so identify themselves prior to addressing City Council.
Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all
comments are welcome, the Brown Act does not allow City Council to take action on
any item not on the agenda. City Council and/or City Manager will respond to comments
after Public Communications is closed.
CITY MANAGER FOLLOW-UP COMMENTS
SPECIAL PRESENTATIONS
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A. PROCEDURAL MOTIONS
Motion to read all ordinances and resolutions on the a enda by title only.
Recommendation — Approval.
B. CONSENT CALENDAR
1. Regular City Council Meeting Minutes of February 2, 2021
Recommendation — Approval
2. Warrant numbers 3034301 and 3034373 on Register No. 8b in the total
amount of $334,871.99 and wire transfers from 01/18/21 through 01/24/21 in
the total amount of $877,376.98. Warrant numbers 3034374 — 3034443 and
9001827 — 9001827 on Register No. 9a in the total amount of $259,607.77
and wire transfers from 01/25/21 through 01/31/21 in the total amount of
$471,023.38. Warrant numbers 3034444 — 3034516 and 9001828 — 9001869 in
the total amount of $280,810.01 and wire transfers from 02/01/21 through
02/07/21 in the total amount of $372,045.73.
Recommendation: Approve Warrant Demand Register and authorize staff to
release. Ratify Payroll and Employee Benefit checks; checks released early due
to contracts or agreement; emergency disbursements and/or adjustments; and
wire transfers.
3. California Green Business Network (CAG13N)
Recommendation: Authorize the City Manager to execute an agreement with
California Green Business Network (CAGBN) to secure a $30,000 grant from the
state to start a green business program in El Segundo.
4. Ratify waiver agreement allowing CenterCal additional time to enter into a
construction contract regarding the golf course improvements portion of
the Topgolf project at the Lakes at El Segundo (400 S. Pacific Coast
_Highway, El Segundo, CA 90245
Recommendation: Approve ratification of waiver agreement. (Requirements to
construct and complete golf course improvements and be open for business
before or concurrently with the opening of the Topgolf Facility/driving range are
not altered by this agreement).
R
n
C. PUBLIC HEARINGS
5. Proposed City Water and Wastewater Rate Adjustments for Fiscal Year
2020-2021 throu hg Fiscal Year 2024-2025
1) Conduct public hearing related to Proposition 218 majority protest process for
proposed City water and wastewater rate adjustments, 2) Received written and
verbal testimony in response to proposed City water and wastewater rate
adjustments for Fiscal Year 2020-2021 through Fiscal Year 2024-2025, 3) Adopt
a resolution certifying the protest ballot results, 4) If a majority protest does not
exist, introduce an ordinance setting City water and wastewater rates and
charges pursuant to Health and Safety Code § 5471 and El Segundo Municipal
Code § 11-1-5
D. STAFF PRESENTATIONS
6. COVID-19 Update & Action Items
Recommendation: 1) Receive and file COVID-19 Update, 2) Ratify January 29,
2021 Amendment to City Administrative Order # 1 to Address COVID-19, 3)
Authorize Mayor to sign and send letters of support to allow youth sporting
activity and competition to Governor Newsom and Los Angeles County Board of
Supervisor, and 4) Adopt resolution designating the first Monday in March as
"COVID-19 Memorial Day".
7. Selection of Many Mansions to serve as City's Affordable Housing Services
Provider
Recommendation: Authorize City Manager to enter into an Exclusive Negotiating
Agreement (ENA) with Many Mansions to serve as City's Affordable Housing
Services Provider to develop and manage affordable housing units, services, and
programs.
8. Fiscal Year 2019-2020 Ci _wide Budget Year -End Report
Recommendation: Receive and file.
9. Update Model Floodplain Mana ement Ordinance
Recommendation: Introduce a proposed ordinance amending City's Model
Floodplain Management Ordinance and place on the March 2, 2021 City Council
agenda for second reading and adoption.
[This ordinance is categorically exempt from review under the California
Environmental Quality Act (California Public Resources Code §§ 21000, et seq.,
"CEQA") and the regulations promulgated thereunder (14 California Code of
Regulations §§ 15000, et seq., the "CEQA Guidelines") because it consists of an
action taken by the City to ensure the maintenance and protection of the
environment. Accordingly, the Ordinance constitutes a Class 8 exemption
pursuant to CEQA Guidelines § 15308.]
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E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS
F. REPORTS — CITY CLERK
G. REPORTS — CITY TREASURER
H. REPORTS — COUNCIL MEMBERS
Council Member Giroux —
Council Member Nicol -
Council Member Pirsztuk -
Mayor Pro Tern Pimentel —
Mayor Boyles —
I. REPORTS — CITY ATTORNEY
J. REPORTS/FOLLOW-UP — CITY MANAGER
CLOSED SESSION
City Council may move into a closed session pursuant to applicable law, including the
Brown Act (Government Code Section §54960, et sec..) for purposes of conferring with
City's Real Property Negotiator; and/or conferring with City Attorney on potential and/or
existing litigation; and/or discussing matters covered under Government Code Section
§54957 (Personnel); and/or conferring with City's Labor Negotiators.
REPORT OF ACTION TAKEN IN CLOSED SESSION (if required)
MEMORIAL
ADJOURNMENT
POSTED:
DATE: February 12, 2021
BY: Tracy Weaver
TIME: 10:45 AM
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MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, FEBRUARY 2, 2021 — 4:00 PM
CLOSED SESSION
This meeting was conducted virtually via Zoom conferencing
CALL TO ORDER - Virtually by Mayor Boyles at 4:02 PM
ROLL CALL
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tern Pimentel -
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5-minute limit per
person, 30-minute limit total) None
SPECIAL ORDER OF BUSINESS:
Mayor Boyles announced that Council would be meeting in closed session pursuant to
the items listed on the Agenda.
CLOSED SESSION:
The City Council may move into a closed session pursuant to applicable law, including
the Brown Act (Government Code Section §54960, et sue.) for the purposes of
conferring with the City's Real Property Negotiator; and/or conferring with the City
Attorney on potential and/or existing litigation; and/or discussing matters covered under
Government Code Section §54957 (Personnel), and/or conferring with the City's Labor
Negotiators; as follows:
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Initiation of litigation pursuant to Government Code §54956.9 (d)(4): -1- matter
ADJOURNMENT at 5:17 PM
Tracy Weaver
City Clerk
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REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, FEBRUARY 2, 2021 - 6:00 P.M.
This meeting was conducted virtually via Zoom conferencing
CALL TO ORDER - Virtually by Mayor Boyles at 6:00 PM
INVOCATION — The Bridge, Pastor Wes Harding
PLEDGE OF ALLIGENCE — Council Member Nicol
ROLL CALL
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tern Pimentel -
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5-minute limit per
person, 30-minute limit total) None
CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications)
SPECIAL PRESENTATIONS,
a) Proclamation read by Mayor Boyles, proclaiming February as Black History
Month. Shad McFadden, DEI Chairperson and several members of the DEI
Committee received the Proclamation.
b) COVID-19 Update given by Fire Chief Donovan
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the Agenda by title
only.
MOTION by Council Member Giroux, SECONDED by Council Member Pirsztuk to read
all ordinances and resolutions on the agenda by title only. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
B. CONSENT CALENDAR
1. Approve Regular City Council Meeting Minutes of January 19, 2021,
MINUTES OF REGULAR COUCIL MEETING
JANUARY 19, 2021
PAGE 1
2. Warrant numbers 3034109 — 3034188 and 9001781 — 9001825 on Register No.
7b in the total amount of $336,714.46 and wire transfer from 12/28/2020 through
1/03/2021 in the total amount of $345,455.33. Warrant numbers 3034189 —
3034300 and 90011826 — 9001826 on Register No. 8a in the total amount of
$418,234.29 and wire transfer from 1/04/2021 through 1/10/2021 in the total
amount of $709,943.76 and wire transfer from 1/11/2021 through 1/ in the total
amount of $2,107,415.76. Ratified Payroll and Employee Benefit checks; checks
released early due to contracts or agreement; emergency disbursements and/or
adjustments; and wire transfers.
3. Approve the proposed Examination Plans for the new Library Manager and
Cultural Arts Coordinator positions and approve the proposed Class
Specifications for Library Manager and Cultural Arts Coordinator.
(Fiscal Impact: None)
4. Accept Pavement Rehabilitation Project for FY 2019-20, by Hardy and Harper,
Inc. as complete and authorize the City Clerk to file a Notice of Completion with
the County Recorder's Office. Project No. PW 20-01
(Fiscal Impact: $362,274.93)
5. PULLED BY MAYOR BOYLES
MOTION by Council Member Giroux, SECONDED by Council Member Nicol, approving
Consent Agenda items 1, 2, 3, and 4. MOTION PASSED BY UNANIMOUS VOICE
VOTE. 5/0
PULLED ITEM:
5. Waive $50,000 in permitting fees and associated costs to provide temporary
barricades for businesses to allow outdoor dining areas until December 31, 2021.
(Fiscal Impact: $23,000.00 FY 2020-2021, $27,000.00 FY 2021-2022 budget)
Scott Mitnick, City Manager, answered Council's questions regarding the item.
Council Discussion
MOTION by Mayor Boyles, SECONDED by Council Member Giroux to waive
permitting fees and associated costs for outdoor dining areas until December 31, 2021.
C. PUBLIC HEARINGS: None
D. STAFF PRESENTATIONS:
6. Receive and file the City's fourth annual customer satisfaction survey results that
were conducted with residents and businesses utilizing the Net Promoter Score
(NPS) methodology.
(Fiscal Impact: $20,000.00)
MINUTES OF REGULAR COUCIL MEETING
JAN UARY 19, 2021
PAGE 2
Barbara Voss, Deputy City Manager introduced the item.
John Dickey, Quality Solutions, Inc. gave a presentation.
Council Discussion
Council comments/requests regarding the annual customer satisfaction survey results:
• Survey timing was questioned; is the survey conducted during heavy website
traffic periods? Is there a peak time to conduct the survey?
■ Would like to see the use of transactional surveys conducted and/or surveys
conducted at the conclusion of business.
What is the specific zoning issues, parking requirements, floor area ratio?
"How has the City improved over last year?" Would like previous year's data for
comparison.
Review Granicus's ability to administer transactional surveys.
Council requested to see specific survey's related to "loss of hometown feel" and "vision
and responsiveness of Council" in order to further explore and understand the concepts.
Council Consensus to receive and file the presentation.
7. Receive and file City Broadband Update
(Fiscal Impact: None)
Scott Mitnick, City Manager, introduced the item.
Charles Mallory, ITSD Director, gave an introduction and the following reported on the
item; Spectrum: Steven Kuznetsky, Stephen Sawyer and James Farbelow, ATT: John
Heffernan & Michael Silacci, American Dark Fiber: Dave Daigle and Verizon: Michelle
Bower
Council Discussion
Council raised questions of the panel of providers in order to help in moving forward
with improved broadband within our Community:
■ What is the timeline to fix the current issues: connectivity, speed, availability,
quality of service?
Is the future wireless or wired?
• Why is El Segundo's broadband poor?
• What is the plan moving forward?
• Providers to give an overview of systemically how level of service to clients is
provided.
■ Bring to Council benchmarks and diagnostics on a quarterly basis.
• Council seeks to understand the bigger picture in order to come together with
providers and together work on improving broadband service to both residential
and business customers.
MINUTES OF REGULAR COUCIL MEETING
JANUARY 19, 2021
PAGE 3
Directed staff to prioritize item during Strategic plan discussion.
Council Consensus to receive and file the presentation-
8- Receive and file overview of "Report an Issue" website feature.
(Fiscal Impact: None)
Scott Mitnick, City Manager, introduced the item.
Charles Mallory, ITSD Director, gave an introduction and Margaret Liu, Senior Project
Manager, Consultant, presented the item.
Council Discussion
Council Consensus to receive and file the presentation.
9. 2021 Legislative Platform representing official City positions on proposed
regional, state, and federal legislation.
(Fiscal Impact: None)
Barbara Voss, Deputy City Manager introduced the item.
Martha Guzman-Hurtado, Communications and Legislative Affairs Manager, gave a
presentation.
Council Discussion
MOTION by Mayor Pro Tern Pimentel, SECONDED by Council Member Giroux,
adopting the 2021 Legislative Platform. MOTION PASSED BY UNANIMOUS VOICE
VOTE. 5/0
10. 2020 Economic Development Annual Report summarizing the key
accomplishments of the City's economic development division.
(Fiscal Impact: None)
Barbara Voss, Deputy City Manager introduced the item.
Cristina Reveles, Economic Development Coordinator, gave a presentation.
Council Discussion
Council Consensus to receive and file the presentation.
E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS: None
F. REPORTS — CITY CLERK — Passed
G. REPORTS — CITY TREASURER — Not present
MINUTES OF REGULAR COUCIL MEETING
JANUARY 19, 2021
PAGE 4
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H. REPORTS — COUNCIL MEMBERS
Council Member Giroux — Encouraged residents to contact local and state
legislators, including the Governor, requesting kids return to pre lockdown
activities. For more information and a better understanding of how the pandemic
is affecting children, go to Let Them Play CA on Facebook.
Council Member Nicol — Passed
Council Member Pirsztuk — Passed
Mayor Pro Tern Pimentel — Echoed Council Member Giroux's sentiments and
encouraged sending correspondence to the Executive level, as local legislators
have been mostly left out of the pandemic orders/process. Thanked Public Works
for a successful resurfacing of our streets. Asked all to be mindful of current
housing bills and stated Council will continue to advocate daily on behalf of our
City. Reminded those who ride electric bikes, that when traveling south on the
bike path, electric bike rules will now apply.
Mayor Boyles — Mentioned the South Bay COG will send a letter to LAWA
expressing concerns regarding the expansion project. General Assembly will be
held virtually on March 18, 2021. Mentioned a 3-year seat on the Metro Service
Council is open, if interested, email jacki@southbaycities.com
11. Adopt a resolution opposing proposed housing legislation, Senate Bill 9 (Atkins)
and Senate Bill 10 (Weiner).
(Fiscal Impact: None)
Mayor Boyles introduced the item.
Council Discussion
David King, Assistant City Attorney, read by title only:
RESOLUTION NO. 5247
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO,
CALIFORNIA, EXPRESSING OPPOSITION TO PROPOSED HOUSING
LEGISLATION SENATE BILLS 9 AND 10 AND EXPRESSING SUPPORT FOR
ACTION TO FURTHER STRENGTHEN LOCAL DEMOCRACY, AUTHORITY
AND CONTROL.
MOTION by Council Member Nicol, SECONDED by Council Member Pirsztuk
approving Resolution No. 5247. MOTION PASSED BY UNANIMOUS VOICE VOTE.
5/0
I. REPORTS — CITY ATTORNEY — Passed
MINUTES OF REGULAR COUCIL MEETING
JANUARY 19, 2021
PAGE 5
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J. REPORTS/FOLLOW-UP — CITY MANAGER — Commented on upcoming agenda
items.
MEMORIAL — None
ADJOURNED at 9:12 PM
Tracy Weaver, City Clerk
MINUTES OF REGULAR COUCIL MEETING
JANUARY 19, 2021
PAGE 6
13
3034301 - 3034373
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DATE:
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CITY OF EL SEGUNDO
PAYMENTS
BY WIRE TRANSFER
01/18/21 THROUGH 01/24/21
Cate
ER)Lee
Descriiotion
1/19/2021
IRS
165,937.45
Federal 941 Deposit
1/19/2021
Employment Development
3,506.29
State SDI payment
1/19/2021
Employment Development
36,922.44
State PIT Withholding
1/19/2021
Manufacturers & Traders
140,262.50
457 payment Vantagepoint
1/19/2021
Cal Pers
116,175.00
Replacement Benefit Contributions
1/20/2021
Cal Pers
11,17020
EFT Retirement Safety-Fire-PEPRA New 25020
1/20/2021
Cal Pers
23,998A 7
EFT Retirement Safety-Police-PEPRA New 25021
1/2012021
Cal Pers
35,632.19
EFT Retirement Misc - PEPRA New 26013
1/20/2021
Cal Pers
47.882.12
EFT Retirement Misc - Classic 27
1/20/2021
Cal Pers
71,771.60
EFT Retirement Safety Police Classic - 1st Tier 28
1/20/2021
Cal Pers
56,232.42
EFT Retirement Safety Fire- Classic 30168
1/20/2021
Cal Pers
11,266,71
EFT Retirement Sfty Police Classic-2nd Tier 30169
1/21/2021
Manufacturers & Traders
68,297.73
457 payment Vantagepoint
V21/2021
Manufacturers & Traders
1,130.77
401(a) payment Vantagepoint
1/21/2021
Manufacturers & Traders
550.00
IRA payment Vantagepoint
01M 1/20-01117/21
Workers Comp Activity
16,303.94
SCRMA checks issued
01111/20-01117121
Liability Trust - Claims
71,337.45
Claim checks issued
01111/20-01/17/21
Retiree Health Insurance
0.00
Health Reimbursment checks issued
877.376.98
DATE OF RATIFICATION: 01125/21
TOTAL PAYMENTS
BY WIRE:
877,376.99
Certified as to the accuracy of the wire transfers by:
Trea yy & Cus mez s Manager iJ e
Dire f Finance 1 Date
Manager
f -Z
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Date
Information on actual expenditures Is available in the City Treasurer's Office of the City of El Segundo.
PACity Treasurer%Wire TransfemkVlrrreTransfers 10-01-20 to 6,3 21
1/2512021 1/1
15
3034374 - 3034443
SM1027 . 9001827
601 GENERAL FUND 149A27,19
104 IRAF FIC SAFETY FUND
106 STATE OAS TAX FUND
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icy ASSET FORFEITURE FUND 7,56693
111 COMM. DEVEL BLOCK GRANT
112 PROP "A- TRANSPORTATION
114 PROP'C TRANSPORTATION 50,668.76
115 xl' OWY_ I ry adyke tME NT PROGRAM
ITS HOME SOUND INSTALLATION FUND
117 HYPERION MITIGATION FUND 43996
115 TDAARTICLE 3-$8821 BIKEWAY FUND -
119 MTA GRANT
121 FEMA
120 C 0 P S FUNO
122 LAWA FUND
123 PSAF PROPERTY TAX PUBLIC SAFETY
124 FEDERAL GRANTS 16.32000
125 STATE GRANT
126 AM CUPA Program 0ve19ght Surcharge
128 Se-1
129 Cri t fred Access Spw i" Program ICAS -
130 AFFORDABLE HOUSING
131 COUNTY STORM WATER PROGRAM
202 ASSESSMENT DISTRICT e73 _
301 CAPITAL IMPROVEMENT FUND 3B7.DO
302 INFRASTRUCTURE REPLACEMENT FUND -
405 FACILITIES MAINTENANCE
501 WATER UTILITY FUND 2,12523
502 WASTEWATER FUND 6.902.94
503 GOLF COURSE FUND
504 PARK VISTA
50$ SOLID WASTE
601 EQUIPMENT REPLACEMENT
602 LIABILITY INSURANCE 16,271-76
603 WORKERS COMP RESERVEIINSURANCE
701 RETREO Er4P IN"Ar10E
702 EXPENDABLE TRUST FUND -DEVELOPER FEES
703 EXPENDABLE TRUST FUND - OTHER 7.49800
zoo OUTSIDE SERVICES TRUST
TOTAL WARRANTS
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
IAra IIIM on aclual eapendilUTee Is eve8able in the Director of Finance a office in the
CAy 01 El S"undc.
I cemly as to the AccunitY Of the Demands and the avadabiely, of fund for payment thereof
For Approval: Regular checks held for City council aIAhorrralian to release,
CODES.
R= Compulergenenled checks fares non•emergprcyltuyeneyysynerpx formalerials supplies and
servfus In support et Cdy Operations
For RalKcstion:
A = Payroll and Employee 6enelit checks
B-F- CA+AP1diH Ven-wiria Eany Rebate dnnUn--eyes anurcr aelulr vlits approved by the Clh
Memrller. 1Grch as- paymenls for WMy sendces, PO4 cash aad employde 1-4 eXpenw.
revwuhr m nls. va1W,C r4fyn41, eorow emotpyee mr ,ces C0nit1lahl with Curfdm Cprllmelu it
agrae nshil. Ihllances vMe19 prompl pikrrIE l duC&uIVS c;A e! 4Wa4ned or late payment penalties
ran be aeOlded or when a situation prises that 1re1" MAnaya r apprares.
H. Handvlitten Early Release dlsbulsemants andfor adjustments approved by the City Manager
FINANCE DIRECTOR
loser�h Lillio nlg,mllYl19neabyrwepnuEn CITY MANAGER
DATE: P Pale: 2021 jot 2913:5114 -08'00'
DATE:
rn
CITY OF EL SEGUNDO
WARRANTS TOTALS BY FUND
$ 2S9,607.77
DATE OF APPROVAL: - AS OF 02/16f2O2T
V010 CHECKS am To AL70NMENT:
NIA
VOID CHECKS DUE TO INCORRECT CHECK DATE:
VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR:
NOTES
REGISTER e9a
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
01/25121 THROUGH 01/31/21
Date
Payee
Descri)tion
1/25/2021
IRS
249,526.55
Federal941 Deposit
1/25/2021
Employment Development
4,485.04
State SDI payment
1/25/2021
Employment Development
55,270.99
State PIT Withholding
1/25/2021
ExpertPay
1,670.75
EFT Child support payment
112812021
Pitney Bowes
10,000.00
Postage for City Hall
1/29/2021
CA Infrastructure Bank
88,655.22
Semi Annual Infrastructure payment
1/28/2021
Lane Donovan Golf Ptr
31,601,81
Payroll Transfer
01/18/20-01/24121
Workers Comp Activity
29,813.02
SCRMA checks issued
01/18120-01/24/21
Liability Trust - Claims
0.00
Claim checks issued
01118/20-01124121
Retiree Health Insurance
0.00
Health Reimbursment checks issued
471.023.38
DATE OF RATIFICATION: 01/29/21
TOTAL PAYMENTS BY WIRE.
471.023.38
Certified as to the
accuracy of the wire transfers.by
Treasury & Cuitonfer
Services Manager D to
Digitally signed by Joseph l.11lio
J o s ICE h L i I o D.w 202 l .01.29 20:02:22 -08'00'
Dir t6r of Finance Date
V, I7, . IL Z�J�Z I
ity Manager Date
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
PACity TreasurerlWire TransferslWlre Transfers 10-01.20 to 6-30-21
1/29/2021 1 /1
17
CITY OF EL SEGI1N00
WARRANTS TOTALS I3Y FWD
3034444 3034916
DATE OF APPROVAL: �_iZ 1817021
9W192B 9001869
.._._
00, OENMVLFUND
IOB,2T648
im T mmxAFE7 NO
-
105 STATE GAS TAK FUND
iol ASSOCIATED AECREA7104 AC'1VIIVS FLM
-
100 AP`..'EffC E3l OMT+ C
737.SB
111 ComM DFvEL_BLOCKGPAAT
-
T12 PROP'MTRANSPORTATKm
114 PROP%-TRAHSP0RTAl10N
-
l11 Ae1 WAllrinl i,Riwrut lYT[y1RAe,
11; HOME SOU-0 k[STALlATK11i FMry,7
111 H/YPERIWTMnIGATIOK FUND
-
11B 1DA AY11G1 3-tA4 OXnWAYT RQ
-
116 WAORANT
121 FEVA
120 COP. -FUND
-
T22 LAWAFUND
-
121 t ;Ar PryO IR, iµ I`L•PLl4 F< VY
*4 FEDERALORANTS
-
125 STATE GRANT
128 AlPCUPAPveWmOmnWSm "p
99,84
T2a S&1
122 Cnigtl Meter SPF+MIK M1�I�ICAS
111 COUNTY STORMWATPR PROGRAM
-
202 ASSSSSIA W DISTRICT l ?3
301 CAPITIL WMWvEWHO F1111D
10.325.00
202 2lRR ZVHkXIUPE AEPUCP vF»
-
400 FAMIRS Mf*nugmICe
-
Sol WATER UTE2TY FUND
273.18
ffi2 WASTEWATERRIIID
1.06F.31
500 OWCOURSEF"
904 PARK MLYA
SPe sQuo WASTE
125.961.50
Tpt 1P1iF•v[rTf:17ArtGP1.Ov1
on LIPAWTYWSURAMM
-
601 WORKERSCOMP PEBERVEM:UNIAFCE
701 RETWINEMP-1NS11RANCE
702 E770'FEMENLE TRIM PU1q-DEVELOPER FEES
200.18
703 SXPEMVAETRU9fp1Np• OTHER
BL
1TOOA0
TOE u.rr�x c�.c:s ,Pv�l
TOTAL WARRARFs
S 280.B10A1
STATE OF CALWORNIA
LOl NTY OF LOB ANCELES
lf0WW0n On Aduld ekpandlw I1 wIA&ly yrw Okn ai FIAv"t ofW4 Wvw
coy d EI SK-0a
!ceKlfy 46T08.1 ace .W f U1e OWD.AA and Wa.-AmwkY of"./a P.,m U-9.
FarApproval: R20ai v rlxur Aam 1r( yR/• rvuncc a uV,ensallen b leleale.
Coon
VORD c1lC1[S OUE Ta ALSDRMc at:�
RA
R- C Checks Mlall neh.FlaegyPRy1,•N•P=YPtlnnls6 fa mMa11e1f. lclppi eT alld
flervlua ✓n rusAaA M Ctly Op.latleiu
Nmm b f..ow I
F1v RalPocdlen;
VOID QIECNS am To OYCORRECT CHECK DATE:
A • P." see Fi.Q10". a m.m UW-kt VOID C.WCK8 OW TO COMPUTER 32MLYAM ERROR:
B•F- Cvewwrga>.natd E.FArRHuss 011bwMKnlnD andb100JVMmw approved Dy lNecay ---
AI—D"L SVeh rs: FWMr" f0t W►y ",WA1, POW Ca[A P e. VUl—Y" OVP. NOTES
Kvmlv2a+amu• YMOyaFNtrRFt, sVKMa[ta..gmP.armaris PPnyv!•PR KMh DeMM etmNaWW —'
�2.areenl, InliMen nheROP�PN p4)h+rla aFxwndt ran W SVIaNMa taa pnynem pe0a41es
can L. aYefded a Mlpn v shual'y,, K od4 Orel Ik. Ciy Ma nlqu appepreF
Hy f�+ l0rnf0Ry R�jNeima'Pf .gr•NInMS4w"*d6y7MCk/Nme9 ,,
FWAM" DMCTOR CITY MANAGER
vATE: OATS,; -
W.
REGIBTERMT6
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
02/01/21 THROUGH 02107/21
DEL uee
Aeacri fion
_
2/312021 Cal Pars
11,170.20
EFT Retirement Safety-Fire-PEPRA New 25020
2/3/2021 Cal Pers
23,998.17
EFT Retirement Safety-Police-PEPRA New 25021
2/3/2021 Cal Pers
43,544.56
EFT Retirement Misc - PEPRA New 25013
213/2021 Cal Pars
47,794.43
EFT Retirement Misc - Classic 27
2/312021 Cal Pers
64,937.29
EFT Retirement Safety Police Classic - 1st Tier 28
2/312021 Cal Pers
54,588.33
EFT Retirement Safety Fire- Classic 30168
2/3/2021 Cal Pars
6,482.25
EFT Retirement Sfty Police Classic-2nd Tier 30169
2/3/2021 California EDD
242.09
Reconciliation payment
2/312021 California EDD
116.22
Reconciliation payment
214/2021 Manufacturers & Traders
69,598.34
457 payment Vantagepoint
214/2021 Manufacturers & Traders
1,130,77
401(a) payment Vantagepoint
2/4/2021 Manufacturers & Traders
650.00
IRA payment Vantagepoint
01/25120-01/31121 Workers Comp Activity
47,893.09
SCRMA checks issued
01125/20-01/31/21 Liability Trust- Claims
0.00
Claim checks issued
01/25120-01131121 Retiree Health Insurance
0.00
Health Reimbursment checks issued
372,045.73
DATE OF RATIFICATION: 02/04121
TOTAL, PAYMENTS BY WIRE:
372.045.73
Certified as to the accuracy of the wire transfers by:
r
Treasury & C stome ervices Manager
Dat
Di o of Finance
Date
ity Manager
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of ET Segundo.
P:lCity Treasurw Wire TransfemxWom Transfers 10-01-20 tD 6-30.21
2/4/2021 1M
W
CITY OF
E L S E GU N D O City Council Agenda Statement
Meeting Date: February 16, 2021
Agenda Heading: Consent
TITLE:
California Green Business Network (CAGBN)
RECOMMENDATION:
Authorize the City Manager to execute an agreement with California Green Business
Network (CAGBN) to secure a $30,000 grant from the state to start a green business
program in El Segundo.
FISCAL IMPACT:
The California Green Business Network (CAGBN) is a non-profit organization which will
help the City to apply and obtain a grant from the State for a total amount of $30,000. The
local match for this grant is 50% ($30,000) which be provided by the City through in -kind
services and staff time.
BACKGROUND:
For some time, the Environmental Committee has been researching options for
implementing a "Green Business Recognition Program" to encourage sustainable
business practices through rewards as opposed to civic mandates. This research has
included discussions with other municipalities as well as El Segundo businesses, the El
Segundo Chamber of Commerce, and city staff.
The Environmental Committee now recommends to the City Council to consider joining
the California Green Business Network (CAGBN), which provides a certification program
that helps businesses become more environmentally responsible and offers them
marketability for their sustainable practices. Certification in the program includes the
implementation of best management practices that address energy efficiency, waste
reduction, water conservation, and several other "green" practices that help businesses.
Green Business Certification programs are a way for businesses to show their
communities that they are committed to environmental values, and to attract like-minded
customers.
The CAGBN, under guidance from CalEPA, may have possible funding from the State of
California to help up to five new communities start a Green Business Program. These
programs do not specifically target disadvantages communities, but instead those that
are most willing and able to implement a Green Business Program. Even though, El
Segundo is not a Disadvantaged community, but still stands a good chance to secure this
grant.
WE
California Green Business Network
February 16, 2021
Page 2 of 3
DISCUSSION:
There are many benefits of joining the Green Business Program --
Meet City/County sustainability goals
■ Enhance environmental compliance
■ Improve stakeholder relationships
■ Possible up to $30K in funding to start a program and estimated $15-$20K in
funding for subsequent years (however, not guaranteed)
• Get a plug -and -play platform to run the program
If funds are available and the City of El Segundo is selected, this subcontracted work will
provide up to $30,000 to assist with the establishment of Green Business Programs. The
funds will be available to help coordinate outreach to the business community to engage
them in the Green Business Program. The following are the eligible expenses:
• Staff and/or consultant time to assist and track businesses through the program.
• Marketing efforts to attract and promote certified Green Businesses.
• Business rebates for purchases required to meet green business standards.
• Material expenses for events such as Green Business Academies and/or
recruitment events.
• Community Based Organization engagement
This past year, municipally run Green Business Programs received anywhere from
$15,000 to $20,000 in funding, based on the number of businesses in their region and
their past performance. CAGBN hopes to increase those funding amounts. If additional
funding is provided, more funding will be distributed to successfully run local programs.
Please note the funding is performance based and not guaranteed.
Annual expenses include an estimated $5,228 in member dues to CAGBN for use of
database, statewide performance standards, marketing, and funding development. First
year fees are waived for the new programs that are selected by the CAGBN Board of
Directors.
Due to Covid-19 circumstances, the funds for this year are not guaranteed and CAGBN
will not know if the State will provide funding until May 2021.
The City Attorney's office has reviewed and approved the attached CAGBN's agreement
to form.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 5: Champion Economic Development and Fiscal Sustainability
Objective A: El Segundo promotes community engagement and economic vitality.
21
California Green Business Network
February 16, 2021
Page 3 of 3
PREPARED BY: Jasmine Allen, Senior Management Analyst, on behalf of the
Environmental Committee
REVIEWED BY: Elias Sassoon, Public Works Director
APPROVED BY: Scott Mitnick, City Managers
ATTACHED SUPPORTING DOCUMENTS:
1. CAGBN Presentation
2. CAGBN Contract
22
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GREEN
CALIFORNIA
GREEN BUSINESS 1,
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T°°GREEN ECONOMYNEARE
WHAT WE DO:
1. Provide technical assistance
to business
2. Help municipalities reach
their goals
3. Provide a green marketplace
for consumers
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WHY
START A
PROGRAM:
Powerful
Public/Private
Partnerships
Promotes
Business
Sustainability
Builds resilient
communities
N
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YOU ARE IN
GOOD COMPANY
• 42 Green Business
Programs
• Over 4,500
recognized
businesses
• Over 2,000 interested
businesses
32 business sectors
• And growing!
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The counties in dark green
are where the green economy
already has a foothold. The
counties in are
where the green economy is
headed next.
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Cities Counties
Carlsbad
Alameda
Culver City
Contra Costa
Glendale
Fresno
Hawthorne
Inyo (NEW)
Hermosa Beach
Marin
Huntington Beach
Mono
Irvine
Monterey
Laguna Beach
Napa
Long Beach
Nevada
Los Angeles
Placer
Manhattan Beach
San Benito
Monterey
San Francisco
Riverside
SFO
Santa Cruz
San Joaquin
Santa Monica
San Luis Obispo
Torrance
San Mateo
Ventura
Santa Barbara
Watsonville
Santa Clara
Santa Cruz
Solano
Sonoma
Stanislaus (NEW)
Ventura
LAGUNA
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Humboldt County
L.A County
Mendocino County
Orange County
Riverside County
Sacramento
San Bernardino County
San Diego County
COLORADO
Green Business Network
FIND A GREEN BUSINESS TAKE THE GREEN BUSINESS ASSESSMENT COMMUNITY CLIMATE
+ GBENN COLLABORATIVE
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Welcome to the Illinois
Green Business Association
Online Certification System Launching Soonl
n forinsC tlo7ror with the l�lAo-n � 1, n•tn F' rs n�•s•.
and five other states to launch a naucnal online green business
_• database ar•d mobile applicahon to hdp Illinois buanesses
f. Qi lJ l�tr.n • achieve green accledilabonand- i-Icribcelemlronmental
tl= i
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of the new Cenmcaeen system ��^ta^I yo•i r
Businesses that join our network conserve precious
resources, prevent harmful pollution, and enhance their
bottom -line.
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Reduced Water Use Conserve Energy Commute Sustainably Prevent Pollution
Low flow toilets and Upgrade lighting and Promote and incentivize Eliminate and/or
auto -off faucets equipment to save alternative properly d spose of
energy transportation for harmful chemicals
employees
Use Non -Toxic Cleaners
Use safer,
environmentally
preferable cleaning
chemicals
Avoid Waste
Eliminate unnecessary
packaging, printing, and
purchasing
Recycle Materials
Divert waste from the
landfill through reuse.
recycling and
composting
STEP 1 - Business Enrollment and Registration
STEP 2 - Green Business Coordinator Initial Walk -Through and
Consultation (Free Technical Assistance)
STEP 3 - Audits f rom Partners (i.e. utilities and water districts)
STEP 4 Business Implementation of Measures
STEP 5 - Final Site Visit and Verification
STEP 6 - Certification and Business Promotion!
• 6 week certification cycles
W
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Certification Areas of Focus
GMEM
CALIFORNIA
O R Mi"SFN C55
NETWORK
Congratulations Fisher's for being the first- A
Green Business certified restaurant in San Benito County! GRM
CALIFORNIA
GREEN BUSINESS
NETWORK
Dashboard Programs- Measures- Resources- Checklists- Tlers Notification- Users- Reports- Video Tutorials California -
A APPLICATION DETAILS
GENERAL
iE' Gucor
Awareness & Maintenance
Lighting & Equipment
POLLUTION PREVENTION
is SOLID WASTE
& TRANSPORTATION
CWl WASTEWATER
6 WATER
O DELETE APPLICATION
BUSINESS LOGIN
PRINT CERTIFIED
N
Tier is available in view mode only.
MEETING THE REQUIREMENTS
Certif ied
62 Certified measures completed. A minimum of 62 Certified measures are required.
Lighting & Equipment
-►. • NEXT
CORE MEASURES
1. Use energy efficient lighting. Replace all halogen,
incandescent, T-12, high-pressure sodium, and metal halide
lighting with LEDs. Below, select the lights you have or what
you've recently replaced.
> Lighting Energy Savings [Which fixtures did you retrofit?]
YES NO N/A CATEGORY PROGRESS
You have completed all measures.
FLAG
GREEN TIPS
POST
Measure 2
HELP
Programmable and smart
thermostats can help your business
conserve energy and save on your
• Air districts
• Wastewater facilities
(pretreatment programs)
• Stormwater programs
• Solid waste/
recycling/reclamation
facilities
• Water districts
• Business Groups
(chambers, associations)
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• Electric utilities
• Climate/GHG reduction
groups
• Transportation agencies
• Environmental Health/CUPAs
• Public Works/Offices of
Sustainability
• Economic Development
• Universities, Colleges, Green
Job Training Programs
#►
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• Connect businesses
� with resources and
rebates for retrofits.
• $SOO rebate from
CAG B N/State of CA for
lighting, HVAC, time of
use and demand
response, automatic
controls,100%
renewable power
options, and more.
Meet City/County sustainability goals
Enhance environmental compliance
Improve stakeholder relationships
Receive $30k in funding to start a
program*
Get aplug-and-play platform to run
the program
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greenbusinessca.org
• CAG BN provides mentorsh i p, resources & support
• 6 New Programs in 2018
• 5 New Programs in 2019
• 2 New Programs and multiple Tribal Regions in 2020
• Hopefully funding for 2021 for at least 2 new programs
• GreenBizTRACKER is a GBP in -a -box
www.areenbusinessca.ora
• Process for u n d e rse rved communities
• The factory is built, we are ready to crank out Green
Businesses!
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1
Business Promotion
ShopGreen
The
® Sustainable
Economy
is here.
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Business Logo Usage Guidelines
Facebook l Instagram I Email I Print
GMEN
CALIFORNIA
GREEN BUSINESS
NETWORK
Award Events
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MN
eeeaMes a
gREa=N eLtSrN�sS!
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CALIFORNIA
GREEN BUSINESS
NETWORK
"The San Benito County Green Business
Program has been instrumental in
engaging our businesses in waste
reduction, recycling, water conservation
and efficiency, stormwater pollution
prevention, and energy efficiency
initiatives. This program helps our County's
businesses meet several environmental
"As the former administrator of the
Huntington Beach Sustainable Business
Certification program and now the
Fullerton Sustainable Business
Certification program, I can
wholeheartedly say that this program
helps businesses become more
sustainable not just environmentally but
state mandates, while forming positive financially as well. Businesses are not used
relationships between local government to governments wanting to help them but
staff and the business community." this program proved to show businesses
that City Hall was here to help."
"Since implementing the Marin Green Business Program in 2002, the
County of Marin has built a robust network of over 300 Certified Green
Businesses which provide a marketplace for the
environmentally -minded consumer. These businesses have contributed
to the County's climate action goals by taking advantage of the energy
efficiency resources that are available to them, and have been key
participants in the County's efforts to engage the community around
climate action. Cost -saving measures, rebates, and marketing benefits
help keep these businesses economically sustainable as well."
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City of Manhattan Beach:
k
V7
Contra Costa Cou
Jo Fleming
Executive Director
infoC greenbusinessca.org
Off ice: (831) 706-7384
Shawn Orgel-Olson
Director, Marketing & Performance Standards
sorgelolson@environ menta I i n.com
Off ice: (831) 429-1364
1.9
Funding & Database
Join & Member
Stakeholders
Partnerships
Public/Private
Support
w
Guidelines
Assistance
Database
Resources
California Green Business Network
Services Agreement
This Agreement is entered into by the California Green Business Network, a California non-profit
corporation (hereinafter "CAGBN" or "Client"), having an address at 901 Center Street, Santa Cruz, CA
95060, and the PROGRAM NAME HERE (hereinafter "Consultant"), having an address at PROGRAM
ADDRESS HERE.
The period of time covered by this Agreement is from _tune 1, 2020 to .Tune 30, 2021, unless extended by
written agreement.
This Agreement is a sub -award under California Air Resources Board Contract with CAGBN. As such,
it is subject to the terms and conditions of that contract to the extent they apply to sub-awardees. An
excerpt of some of the key requirements are attached as Appendix B. Consultant is required to
understand and comply with all applicable flow -down requirements.
Scope of Work and Compensation
Consultant is to perform the services and be entitled to compensation for such services as described in
Appendix A Scope of Work and Appendix B Reporting and Deliverables and any future appendices signed
by both parties. See details in Appendices A and B.
Relationship of the Parties
Applying its judgment regarding the work to be performed, Consultant is to choose the means and methods
of performing the duties described herein. In so doing, Consultant will act as an independent contractor
and not as an agent, partner, joint venturer, or employee of CAGBN. As such, Consultant is not eligible for
workers compensation or any of the benefits paid to employees of CAGBN. No taxes (including income,
payroll or social security taxes) of any jurisdiction shall be withheld or paid by CAGBN on behalf of
Consultant. Consultant understands that he/she is responsible for paying his/her income taxes and all other
taxes required by law.
Liability and Indemnification
Consultant is solely and exclusively liable to third parties for all expenses incurred by Consultant and for
all claims of damages arising out of Consultant's actions. Consultant agrees to hold CAGBN harmless for
any claims arising from, connected to, or caused in whole or in part by any negligent act or omission of the
Consultant.
Confidentiality and Publicity
To the extent confidential or proprietary information is revealed to Consultant by the Client or obtained by
Consultant on behalf of the Client, Consultant may not use or disclose the information without written
approval from the Client. Wherever possible the California Green Business Network and the California Air
Resources Board shall be recognized in publicity efforts for their fiscal and in -kind support. The
PROGRAM NAME HERE, once accepted into the California Green Business Network shall include the
CAGBN logo and a statement of membership on the program website, window clings, and other key
marketing collateral.
Intellectual Property; Work Made For Hire
In relation to the performance of this Agreement, Consultant may create certain works for CAGBN, and
program partners, all of which will be the property of CAGBN upon creation. To the extent that such
works may be copyrighted or copyrightable under the laws of the United States. Consultant will be
considered to have created a Work Made for Hire as defined in 17 U.S.C. Section 101 and CAGBN shall
have the sole right to the copyright.
Cancellation
This agreement may be cancelled by either party at any time. Upon cancellation by CAGBN, Consultant is
entitled to payment for all services performed prior to cancellation. If cancelled by the Contractor, the
complete funding amount will be returned.
Failure to Perform
The contract provides an up -front lump sum payment for 50% of the services to be rendered, or $15,000.
Should the Consultant fail to perform all or a portion of the deliverables outlined in Appendix A on the
schedule provided, Consultant shall be required to return this initial lump sum fee to Client upon written
request. Upon completion of goals, the remaining 50% of funding, an additional $15,000 will be disbursed.
Entire Agreement; Waiver; Modification
This agreement, including Appendices A, B, and any subsequently added appendices, constitutes the entire
agreement between the parties and outlines in full all of the responsibilities each party has to the other. No
waiver or modification of its terms shall be valid or binding unless in writing and signed by the parties. The
failure of any party to exercise any right or option given to it by this Agreement or to insist upon strict
adherence to the terms of this Agreement shall not constitute a waiver of any terms or conditions of this
Agreement with respect to any other or subsequent breach.
Miscellaneous
This Agreement shall be construed in accordance with the laws of California applicable to agreements
made in California. Section headings used herein are inserted for convenience only and are not part of this
Agreement.
Josephine Fleming
Executive Director
California Green Business Network
831-706-7384
Scott Mitnick
Title: City Manager
Organization: City of El Segundo
Phone number: (310) 524-2301
43
Appendix A
Scope of Work and Compensation
Scope of Work
With this funding of up to $30,000, the PROGRAM NAME HERE will support the certification of 10
or more businesses in the PROGRAM NAME HERE in collaboration with their program partners.
There can be up to 4 of those businesses in Tier 1 Efficiency and at least 6 businesses in Tier 2 Certified.
The Program will launch recruitment efforts by July 30, 2020. PROGRAM NAME HERE in
collaboration with their program partners agrees to certify this minimum number of new businesses
based on their jurisdiction's business population, see Appendix D for the latest business populations.
The PROGRAM NAME HERE will develop a work plan that must be submitted along with this
agreement — funding is dependent on an approved work plan from CAGBN.
Half of the payment will be provided initially. The second half is contingent upon meeting the certification
goals and providing complete and accurate documentation by the given deadlines. Half of the funds, or
$15,000 will be provided upon signature of this sub -contract. If 40% of the terms of this contract are not
met by the progress report date of October 31, 2020, the remaining funding amount of an additional
$15,000 will not be disbursed and instead will be used for another jurisdiction. Regardless of funding
amounts, detailed expenses must be kept to track all costs for staff time, expenses and/or materials using
the expense tracking forms. The total costs must add up to the total funding amount provided, or exceed it
with matched funding.
Task Output Behavior Change
Collaborate with program
1. Certify a minimum of 10 new
1. Businesses get help and make
partners to recruit businesses
businesses the first year of
verified changes to use
and assist businesses through the
program operation.
environmentally preferable
Green Business certification
2. Create local environmental
products and chemicals, conserve
process in the PROGRAM
partnerships that break down
water and energy, and train all
NAME HERE.
government silos, making it easier
employees on environmental
for businesses to gain
awareness. (about 40% of our
environmental technical
measures are behavior change,
assistance.
and 60% involve technology
3. Log business progress and
retrofit)
metrics using the CAGBN
2. Government agencies, and
Database, GreenBizTRACKER.
community -based organizations
Report outcomes to CAGBN by
have increased collaboration.
10/31/20 and for final report
6/1/21.
4. Complete a questionnaire and
join the California Green Business
Network and participate on
working committees.
Local Match Commitment and Reporting Requirements
See Appendix B.
Appendix B
Reporting and Deliverables
The PROGRAM NAME HERE shall provide one progress reports October 30, 2020 and one final
report due June 11, 2021 reporting on the progress of meeting these deliverables on the following
schedule:
EPA Grant Output
Due Date
Deliverable
1. Certify 10+ businesses in the
6/31/21
10 or more new Green Business
PROGRAM NAME HERE.
certifications (up to 6 certified and up to
4 at Participant level)
2. Log business progress and metrics
Ongoing
Administrator will confirm utilization
using the CAGBN Database
of GreenBizTracker and provide
GreenBizTracker
environmental outcomes in update
reports.
3. Create a 1-2 page update report that
10/31/20
1-2 page update report on status of grant
includes:
implementation overall and on progress
a. Status update on working
with business certification (give specific
with businesses in
number of certifications thus far). Note:
CITY/COUNTY NAME
Show 40%+ of certification target
HERE.
complete at this time to receive the
b. Environmental outcomes of
second half of the $30,000.
working with businesses.
c. Obstacles.
d.
4. Create a 2-3 page final report that
6/1/21
2-3 page final report on success of the
includes:
grant implementation.
a. Results of working with
businesses in
CITY/COUNTY NAME
HERE.
b. Environmental outcomes of
working with businesses.
c. Success story
d. Recommendations on how to
proliferate GB certifications
in all parts, and especially _
DACs, of CA.
Reports shall include digital versions of marketing collateral and links to online collateral. These images and links
shall be provided electronically to the CAGBN Executive Director, Josephine Fleming at
jofleming(alenvironmentalin.com and cc:ed to CAGBN's Funding Administrator Shawn Orgel-Olson at
sor elolson environmentalin,com.
45
Cost and Expense Tracking
Consultant shall utilize the attached "Expense Documentation", on the following page, to document
eligible expenses related to the scope not to exceed the contract amount stated herein ($30,000). Mileage
costs will be reimbursed at the current State and IRS approved rates.
Expense Documentation Instructions:
New Green Business Programs chosen by CAGBN will receive funding for
1) in establishing a new program,
2) creating partnerships with community -based organizations that will perform outreach to
disadvantaged community businesses so that these businesses can become green certified, or
3) supporting businesses in these communities to become certified Green Businesses.
As the selected program, Consultant will receive up to $30,000 for expenses related to this scope.
Expenses that are eligible may include but are not limited to:
• Staff and/or consultant time to assist and track businesses through the program.
■ Marketing efforts to attract and promote certified green businesses.
• Business rebates for purchases required to meet green business standards.
• Material expenses for events such as Green Business Academies and/or recruitment events.
• Staff time from a community -based organization, such as a chamber of commerce, business
incubator or small business assistance program to assist in business recruitment, language
assistance and technical assistance.
Consultant is also committing to $30,000, or more, in in -kind match expense for the scope noted above.
Please list the items or services that were a cost or expense on the form provided, and include receipts.
Email the completed form and receipts along with the required reports to
sorgelolson@environmentalin.com and jofl.eminp,@environmentalin.com or mail them to Accounting,
CAGBN, 901 Center Street, Santa Cruz, CA 95060.
Consultant must ensure that the funding is used only for eligible expenses in the not -to -exceed
amount of $30,000. This will take place after the match documentation is received. Beginning
June 1, 2020 and through June 30, 2021 Consultant shall submit forms for expenses and
anything above the $30,000 will be tracked as match contribution.
This Expense Documentation will be provided during the Progress Report (due October 31,
2019) and the Final Report (due February 28, 2020).
�:
Expense Documentation
California Green Business Programs
(DATE)
Name:
Green Business Program:
Address:
Telephone Number:
Email:
Submit during reporting periods to:
sorgelolsongenvironmentalin.com and jo#leming@environmeiitalin.com
California Green Business Network
901 Center Street
Santa Cruz, CA 95060
(831) 706-7384
Date
Description
Hourly
Rate/Cost
Quantity
Total
Total Expenses
47
Program Match Documentation
Consultant shall match the $30,000 funding disbursement from this contract with additional funding
from their municipality, partnering agencies or other sources. Consultant shall document the matched
funding in the form below.
Matched Funding Form
Agency Providing
Funding
Funding
Amount
Task Funding Used For
Program Material
Costs (Design and
Production
*Report must include proper documentation of these costs (i.e., invoice from receiving
organization or business, copy of the check, justification of cost share, etc.)
NOTE: This sheet should follow the progress report.
Appendix C
A copy of the contract between the California Green Business Network and the California Air
Resources Board is attached herein as Appendix C.
Consultant is required to ensure that all sub-awardee requirements are met in delivery and
completion of this contract.
See separate pdf document.
CITY OF
E L S E G U N D O City Council Agenda Statement
Meeting Date: February 16, 2021
Agenda Heading: Consent
TITLE:
Ratify Waiver Agreement allowing CenterCal additional time to enter into a construction
contract regarding the golf course improvements portion of the Topgolf project at the Lake
at El Segundo (400 S. Pacific Coast Highway, El Segundo, CA 90245).
RECOMMENDATION:
Approve ratification of waiver agreement. (Requirements to construct and complete golf
course improvements and be open for business before or concurrently with the opening
of the Topgolf Facility/driving range are not altered by this Agreement.)
FISCAL IMPACT:
None
BACKGROUND:
The last day the Lakes at El Segundo golf course will operate is February 14, 2021.
Topgolf will take possession of the Lakes facility on February 15, 2021. The Lakes facility
will close for fourteen to fifteen months during the construction of the Topgolf facility and
the simultaneous improvements to the golf course that will provide an enhanced
experience to golfers once completed. While the demolition and construction to the areas
adjacent to the golf course will begin in February 2021, the improvements to the golf
course will not begin until June 2021. The improvements to the golf course will take
several months less to complete than the construction of the Topgolf facilities. The
completion of the improvements to the golf course will be done prior to the Spring 2022
opening of the Topgolf facility to the public. Topgolf remains committed to be a community
partner and keep the commitments they agreed to in the formal agreement signed with
the City. The City's and Topgolf's commitment per the agreement is that the golf course,
the new club house, and the Topgolf facility will all be ready to open concurrently in Spring
2022.
DISCUSSION:
CenterCal requested an extension of fulfilling the requirement to provide proof to the City
that it has entered into a construction contract related to the improvements to be made to
the existing golf course. The Agreement provides the City be shown proof that contracts
have been entered into for all of the improvements required of project the prior to
CenterCal taking possession of the Golf Course and driving range under the Lease.
CenterCal and Topgolf are working on some potential upgrades to the golf course portion
of the property beyond those required by the current Agreement and desires additional
WE
Topgolf Waiver Agreement
February 16, 2021
Page 2 of 2
time to enter into and provide proof to the City regarding this portion of the project. The
Agreement provides that the parties may waive certain requirements before transferring
possession of the property. This is a temporary waiver and will not slow down the
completion of the project as the golf course improvements and its opening must still occur
prior to or concurrently with the opening of the Topgolf facility. Staff sees no downside to
the City from this temporary waiver and there is a potential benefit if Topgolf enhances
the improvements currently required to be made to the golf course and related facilities.
Because of safety concerns, some of which involve state health and safety regulations,
while members of the public have expressed the desire to reopen as soon as possible,
realistically the facilities will likely open concurrently. Since construction is expected to
commence in the next week on the Topgolf course portion of the property, for these same
health and safety reasons it was necessary to pause operations at the golf course on
February 14th.
The City, Topgolf, and CenterCal are all working towards the same outcome: ultimately
providing a unique customer experience and ensuring the golf course remains as a
community asset available to the public and El Segundo based youth groups as soon as
feasibly possible.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 5: Champion Economic Development and Fiscal Sustainability:
Objective B: El Segundo approaches its work in a financially strategic and responsible
way.
PREPARED BY: Joseph Lillie, Chief Financial Officer
REVIEWED BY: Mark Hensley, City Attorney
APPROVED BY: Scott Mitnick, City Manager
ATTACHED SUPPORTING DOCUMENTS:
Waiver Agreement
51
WAIVER OF CONDITION PRECEDENT
THIS WAIVER OF CONDITION PRECEDENT (the "Waiver") is entered into
effective as of February , 2021 (the "Effective Date") by and between the City of El
Segundo, a general law city and municipal corporation ("Lessor"), ES Centercal, LLC, a
Delaware limited liability company ("Lessee") and Topgolf USA El Segundo LLC, a Delaware
limited liability ("Topgolf').
RECITALS
A. Lessor and Lessee entered into that certain Due Diligence and Recreation Ground
Lease Agreement dated as of February , 2021 (the "Master Lease") for the lease by Lessor
to Lessee of certain real property located in the City of El Segundo, County of Los Angeles,
State of California (the "Premises").
B. Lessee and Topgolf entered into that certain Ground Sublease Agreement dated as
of February , 2021 for the sublease of the Premises.
C. Capitalized terms used and not otherwise defined herein shall have the meanings
set forth in the Master Lease.
D. Lessor desires to provide a waiver of one of the Conditions Precedent to the
Premises Turnover Date and commencement of the Basic Term set forth in Section 5.5 of the
Master Lease.
NOW THEREFORE, in consideration of the foregoing recitals, the mutual covenants
and agreements set forth in this Waiver, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Waiver of Condition Precedent. The Lessor hereby provides a waiver of the
Condition Precedent set forth in subpart (iii) of Section 5.5 of the Master Lease that requires that
Lessee has entered into construction contracts consistent with the Master Lease for the
completion of the Golf Course Improvements (collectively, the "Construction Contracts") and
agrees that satisfaction of such waived condition shall not be a condition precedent to the
Premises Turnover Date and commencement of the Basic Term.
2. Outside Date. Topgolf covenants and agrees that it will enter into the
Construction Contracts by April 15, 2021.
3. Miscellaneous.
(a) Ratification of Master Lease. Aside from the waiver of the single
Condition Precedent described herein, all other terms, conditions, covenants and provisions of
the Master Lease remain unchanged.
(b) Reliance. Lessor acknowledges and agrees that this Waiver may be relied
upon by each of Lessee and Topgolf USA El Segundo LLC, a Delaware limited liability.
US Active\1 16335765\V-1
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52
(c) Governing Law. This Waiver shall be governed by, and construed,
interpreted and enforced in accordance with, the laws of the State of California, without giving
effect to the principles of conflicts of laws thereunder which would specify the application of the
law of another jurisdiction.
(d) Electronic Signature, Electronic_ Delivery. This Waiver may be executed
by electronic signature. This Waiver, to the extent delivered by means of a facsimile machine or
electronic mail in portable document format or similar format, shall be treated in all manners and
respects as an original agreement or instrument and shall be considered to have the same binding
legal effect as if it were the original signed version thereof delivered in person.
[Signatures on Next Page.]
F)
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53
IN WITNESS WHEREOF, the undersigned have executed this Waiver as of the date first
written above.
LESSOR:
LESSEE -
TOPGOLF.-
THE CITY OF EL SEGUNDO, a general law
City and Municipal corporation
Name: Scott Mitnick
Title: City Manager
ES CENTERCAL, LLC, a Delaware limited
liability company
IA
51
Name:
Title:
Name:
Title:
TOPGOLF USA EL SEGUNDO LLC, a
Delaware limited liability company
Name:
Title
[Signature Page to Waiver of Conditions Precedent]
US_Active\116335765\V-1
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54
ELSEGUNDO City Council Agenda Statement
Meeting Date: February 16, 2021
Agenda Heading: Public Hearing
TITLE:
Proposed City Water and Wastwater Rate Adjustments for Fiscal Year 2020-2021
through Fiscal Year 2024-2025
RECOMMENDATION:
Conduct public hearing related to Proposition 218 majority protest process for
proposed City water and wastewater rate adjustments
2. Received written and verbal testimony in response to proposed City water and
wastewater rate adjustments for Fiscal Year 2020-2021 through Fiscal Year 2024-
2025.
3. Adopt a resolution certifying the protest ballot results.
4. If a majority protest does not exist, introduce an ordinance setting City water and
wastewater rates and charges pursuant to Health and Safety Code § 5471 and El
Segundo Municipal Code § 11-1-5
FISCAL IMPACT:
The proposed water and wastewater rate adjustments over the next five years will result
in an estimated $5,726,955 in new Water Fund revenue and $6,396,262 in new
Wastewater Fund revenue to cover rising operating and capital costs associated with
maintaining both enterprises (including the pass -through charges from West Basin
Municipal Water District and City of Los Angeles Hyperion Treatment Plant). With these
rate adjustments, both funds will remain financially self -supportive and sustainable.
BACKGROUND:
Approximately every five years, the City of El Segundo reviews its water and wastewater
rates to determine what rates should be adjusted over the next five years to pay for the
full cost of providing reliable water and collecting and treating wastewater in an effective
and environmentally safe manner.A fundamental policy goal is for the ratepayers to pay
for the cost of services provided and for each fund to be self-sustaining.
Water rates were last adjusted in 2019. Wastewater rates were last adjusted in 2016. In
anticipation of the need to adjust rates for the next five-year period, staff initiated a water
and wastewater "rate study" for each enterprise in the fall of 2019. This study was
completed in the fall of 2020 and was presented to City Council on December 15, 2020.
This study included presenting a series of water and wastewater rate adjustment options
for each fiscal year (FY) from FY 2020-2021 through FY 2024-2025. Please refer to the
Proposed City Water and Wastewater Rate Adjustments
February 16, 2021
Page 2of5
attached copy of the December 15th staff report and rate study for additional details and
background information.
At the December 15, 2020 meeting, City Council approved the rate study, selected a
water rate structure and wastewater rate structure, and reaffirmed policies and
procedures adopted by City Council on September 16, 2014 via Resolution No. 4888
which set forth the procedures required by California State Proposition 218 (the "Right to
Vote on Taxes Act" of 1996) to implement new or increased water and wastewater rates
for residential and non-residential services. If a majority vote protesting the proposed rate
adjustments does not take place by the February 16th deadline, these rates will remain
in place for five years and the non pass -through costs will be required to be reaffirmed
(with or without future adjustments) through another Proposition 218 protest ballot
process in five years.
DISCUSSION:
Proposed Rate Adjustments
As explained in the December 15th staff report and delineated in the attached proposed
ordinance, City's water and wastewater rates will be implemented over the next five years
as follows:
Utility
FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25_
Water
0%
3%
3%
3%
3%
Wastewater
9%
9%
9.5%
9.5%
9.5%
The water rate adjustments will take place on January 1, 2022, January 1, 2023, January
1, 2024, and January 1, 2025.
The wastewater rate adjustments will take place on April 2, 2021, January 1, 2022,
January 1, 2023, January 1, 2024, and January 1, 2025.
The rate adjustments discussed in the in the 2020 Rate Study are designed to fully cover
the associated costs incurred by the Water Fund and Wastewater Fund over the next five
years. Without the proposed rate adjustments,Water Fund revenues will not cover the
rising cost of imported water purchased from West Basin Municipal Water District,
operating expenses, or needed capital expenses. With respect to the Wastewater Fund,
the adjustments are needed to cover rising costs charged for the City's cost of using the
Los Angeles Hyperion Treatment Plant, planned capital projects, and emergencies.
56
Proposed City Water and Wastewater Rate Adjustments
February 16, 2021
Page 3 of 5
Proposition 218 Protest Ballots, Public Hearing, and Resolution Certifying
Ballot Results
On December 15, 2020, City Council directed staff to administer the Proposition 218
majority protest process and set a public hearing for February 16, 2021 to vote on the
proposed water and wastewater rate adjustments. On December 30, 2020, protest ballots
were mailed out to the recorded owners of each parcel and each water and wastewater
customer (ratepayer) in the City. A sample ballot is attached. This process requires
allowing a minimum of 45 days notification prior to the Proposition 218 public hearing. A
total of 5,3709 water protest ballots and 5,286 wastewater protest ballots were mailed
out. To successfully protest the proposed water and wastewater rate increases, a simple
majority of property owners and/or water ratepayers (2,686 or more) and wastewater
ratepayers (2,644 or more) must return their ballots as instructed.
Property owners and/or water and wastewater ratepayers may turn in protest ballots (by
mail or hand delivery) at any time prior to the close of the public hearing on February 16,
2021. However, only one ballot will be counted for each parcel. At the public hearing,
City Council will be presented with a resolution for purposes of verifying the result of the
protest process and an ordinance reflecting the proposed water and wastewater
adjustments, should there be less than a majority protest for each enterprise fund.
Ordinance Setting New Water and Wastewater Rates
The attached proposed ordinance recommended for introduction reflects the proposed
water and wastewater rate adjustments set forth in the notice mailed with the protest
ballots. It also allows for a pass -through of wholesale water cost increases to the City
from West Basin and other outside sources. The ordinance cannot be introduced and
adopted if a majority of the property owners/ratepayers file written protests.
Once introduced by City Council, a second reading of the ordinance will be scheduled for
the March 2, 2021 City Council meeting. Rate adjustments, if enacted, will take effect no
earlier than April 2, 2021. Passage of the ordinance requires approval by a minimum of
four (4) Councilmembers in order to meet the two -third legislative requirement.
The Proposition 218 Process Recap
In November 1996, the California electorate approved Proposition 218 ("Right to Vote on
Taxes Act") that requires certain procedures be followed with regards to "property -related"
fee increases imposed by governmental agencies. Initially, case law indicated that these
procedures were not applicable to water and wastewater rates. However, a 2006
California Superme Court decision held proposition 218 fee increase procedures must be
followed for any proposed increase to a City's water and wastewater rates. In short, water
and wastewater rate increases are subject to a "majority protest" process that provides
that if a majority of the parcels in the City protest adjustment, then the City cannot impose
the increase.
57
Proposed City Water and Wastewater Rate Adjustments
February 16, 2021
Page 4 of 5
The City took the most conservative approach and sent the protest ballots to both property
owners and tenants, if the tenant is the water or wastewater customer. The City is required
to count only one protest per parcel. Accordingly, even if both owner and tenant file a
protest, only one protest shall be counted for purposes of determining whether there is a
"majority protest" as described below.
Proposition 218 requires that the City provide all properties receiving the utility service for
which the fee is charged (in this case, water distribution and wastewater treatment rates)
with a minimum of 45 days written notice prior to City Council holding a public hearing on
the proposed rate adjustments. The property owners and tenants have the ability to
"protest" the proposed rate increase until the close of the public hearing. If a majority of
the parcels file written protests with the City prior to the close of the public hearing on
February 16, 2021, Proposition 218 states that the City cannot implement the proposed
rate adjustments. If a majority of the parcels do not protest the proposed increase, City
Council will then have the legal authority to implement the proposed rate adjustments.
In accordance with Proposition 218 requirements, several steps have been taken to
comply with the law. Notice to parcel owners of a the proposed rate adjustments, a formal
"Notice of a Public Hearing" set for February 16, 2021 at 6:00 PM, and a "Schedule of
Proposed Water and Wastewater Rate Adjustments" were sent to property owners and
water and wastewater users on December 30, 2020. The most current assessor's parcel
roll from the Los Angeles County Assessor's office was obtained and direct mailing to
each parcel owner within the City was conducted. Likewise, direct mailing was also
conducted to each water and wastewater customer utilizing the water/wastewater billing
address that the City has on file.
It is interesting to note that private investor owned water and wastewater companies, such
as California American Water or California Water, are not subject to Proposition 218
protest ballots. These utilities are regulated by the California Public Utilities Commission.
They do not have to obtain input from ratepayers the way municipal utility systems do.
NEXT STEPS:
If a majority of the parcels do not protest the proposed water and wastewater rate
adjustments and City Council introduces the ordinance, the second reading and adoption
of the ordinance will be scheduled for the March 2, 2021 City Council meeting. Rate
adjustments will then go into effect as articulated above, with the first water rate
adjustment of 3% taking place on January 1, 2022. The first wastewater rate adjustment
of 9% will take place on April 2, 2021.
Proposed City Water and Wastewater Rate Adjustments
February 16, 2021
Page 5 of 5
CITY STRATEGIC PLAN COMPLIANCE:
Goal 5 -- Champion Economic Development and Fiscal Sustainability:
Objective B -- El Segundo approaches its work in a financially strategic and responsible
way
ORIGINATED BY: Joseph Lillio, Chief Finano�4'1 Officer & Elias Sassoon, PW Director
APPROVED BY: Scott Mitnick, City Manager Cis Sr�
ATTACHED SUPPORTING DOCUMENTS:
1. Resolution No. 4888 for Proposition 218 Procedures
2. Resolution Certifying Protest Procedure Results for Water and Wastewater
3. Ordinance Establishing Water and Wastewater Rates
4. December 15, 2020 Water and Wastewater Rate Adjustments Staff Report
5. Water and Wastewater Rate Study
6. Notice and Protest Ballots Mailed to Property Owners
File name: Proposed City Water and Wastwater Rate Adjustments for Fiscal Year 2020-
2021 through Fiscal Year 2024-2025
WE
RESOLUTION NO.4888
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO ESTABLISHING PROCEDURES FOR INCREASING
WATER, WASTEWATER, AND SOLID WASTE FEES IN
ACCORDANCE WITH THE REQUIREMENTS OF PROPOSITION 218.
The City Council for the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds and declares as follows:
A. On July 24, 2006, the California Supreme Court confirmed that charges
for water and wastewater services are subject to Proposition 218
procedures (Bighorn -Desert View Water Agency v. Verjil (2006) 39 Cal.41n
205);
B. The City Council anticipates that there will be future increases in water,
wastewater, and solid waste rates. Adopting the policies and procedures
set forth in this Resolution will help implement the requirements set forth
in Article XIIID of the California Constitution and help ensure that the
rights of those persons that are authorized to protest service charges are
preserved;
C. Elections Code § 4000(c)(9) provides that any protest ballot proceeding
required or authorized by California Constitution Articles XIIIC or XIIID
may be conducted wholly by mail. In the event a protest ballot process is
required, the City Council seeks to achieve higher awareness of those
affected by the proposed increase, provide an orderly protest process for
both those receiving the ballots and the City, ensure to the extent
practicable that there is some verification process regarding the protests
received, and to reduce the costs of the protest ballot process; and
D. Adopting this Resolution is in the public interest for the reasons set forth
above and as further stated within Article XIIID and the Proposition 218
and state legislation relating to the implementation of Proposition 218.
SECTION 2: The City Council adopts the procedures set forth in this Resolution for
conducting all proceedings required by California Constitution Article XIIID for utility
fee (as defined below) increases. Where no specific procedures are imposed by Article
XIIID or the Proposition 218 Omnibus Implementation Act (Government Code § § 53750,
et seq.), the procedures set forth in this Resolution apply. This Resolution may be
referred to as the "Proposition 218 Protest Proceedings Resolution."
SECTION 3: Definitions. Unless the contrary is stated or clearly appears from the
context, the following definitions govern the construction of the words and phrases used
in this Resolution. Words and phrases not defined by this Resolution will have the
Page 1 of 6
meaning set forth in California Constitution Article XIIID or the Proposition 218
Omnibus Implementation Act.
A. "Act" means the Proposition 218 Omnibus Implementation Act found at
Government Code §§ 53750, et seq.;
B. "Article 131)" means California Constitution Article XIIID, § 6;
C. "Manager" means the City Manager or designee;
D. "Property owner" has the same meaning set forth in Article 13D and also
pursuant to the Act includes tenancies of real property where tenants are
directly liable to pay the proposed water or wastewater fee or charge;
E. "Protest" means a written protest filed with the City Clerk in accordance
with Article 13D, the Act, and this Resolution as described in Article 13D,
§ 6(a)(2);
F. "Utility fee" means a fee or charge imposed for potable water, wastewater,
or solid waste services provided to customers in accordance with the El
Segundo Municipal Code ("ESMC"), and other applicable law, by the City
of El Segundo.
SECTION 4: Calculation of the fee and proposed increase. Utility fees must be
calculated in accordance with the recommendations in the latest independent Rate Study
report or City's internal financial analysis.
SECTION 5: Administration of Proceedings. The City Manager, or designee, is
authorized to implement this Resolution in a manner consistent with the California
Constitution and other applicable law.
SECTION 6: Nntice. Notice of a nrnnn-,ed iitility fPP inrrPacP ig nmvidPri ag fnllnwc;
A. In general, the City will identify the record property owner(s) of each
parcel to which the utility fee would be applied from it's billing system
database and/or the latest equalized tax roll produced by Los Angeles
County. The City's Utility Billing database and the equalized tax roll is
presumptive evidence of ownership of the land for voting purposes.
B. If either the City's Utility Billing Database or Los Angeles County
Recorder's website shows that more than one property owner has an
interest in a parcel, all property owners (each property owner) must
receive notice at the address shown for the property owner. Both property
owners and parties financially responsible for paying the fee will be
provided notice. In the event that notice is sent for a utility service for
which the City is not currently charging a fee, the notices will be sent to
Page 2 of 6
61
the property owner based upon the Los Angeles County Recorder's
website and to the street address to which the service would be provided if
the address is different than the address dcsignated for the property owner
on the Los Angeles County Recorder's website.
C. The notice must be sent by first class mail at least forty-five (45) days
before the date set for the public hearing on the utility fee.
D. The form of the notice of hearing will be approved by the City Council
and be on file with the City Clerk.
E. The notice provided by these procedures, in accordance with Article 13D,
supersedes and is in lieu of notice required by any other statutes to levy or
increase a utility fee.
F. The City Clerk, or designee, may certify the proper mailing of notices by
an affidavit which constitutes conclusive proof of mailing in the absence
of fraud.
G. Failure of any person to receive notice does not invalidate the proceedings.
SECTION 7: Protests against Utility Fee Increases.
A. The property owner(s) of parcels subject to the proposed fee increase are
entitled to a single protest for each parcel. When a parcel is held as
community property or in joint tenancy or as a tenancy in common, any
spouse or joint tenant or tenant in common is presumed to have authority
to cast a protest on behalf of such parcel.
B. Executors, administrators, and guardians may cast a protest on behalf of
the estate represented by them. If such representatives are shown on the
latFct accacement rnll as paying taxes and assessments on behalf of the
property owner(s), that fact establishes the right of such representative(s)
to cast a protest. If such representatives are not shown on the latest
assessment roll, the representatives may file with the City Clerk, at any
time before the commencement of the public hearing, or the date of the
election, as the case may be, certified copies of the written documentation
establishing the legal representation.
C. The protest of any public or quasi -public corporation, private corporation,
or unincorporated association may be signed by any person so authorized
in writing by the board of directors or trustees or other managing body
thereof.
D. The Manager is designated as the voting representative with respect to
City -owned property.
Page 3 of 6
W
E. In any case where the documentation provided to the City Clerk in is
ambiguous or unclear, the City Attorney will determine whether the
documentation is adequate for the purpose provided.
F. In the event a property owner loses or misplaces a protest ballot, upon
request by the property owner the City will provide a replacement protest
ballot unless a properly filled out protest ballot has already been received
for the parcel of property.
SECTION 8: Public Hearing.
A. Only protest ballots that (i) were provided by the City to the property
owner in the form approved by the Council and (ii) are properly filled out
and legibly signed by an eligible property owner is made will be counted
as a valid protest. Only one protest shall be counted for each parcel of
property regardless of the number of protests filed by property owners for
the parcel.
B. The City Clerk must stamp each written protest the date and time it is filed
with the City Clerk for purposes of establishing whether the protest was
filed before the close of the public testimony portion of the public hearing.
No protest received after the close of the public testimony portion of the
public nearing can be counted in determining the amount of protest, but
the Council may, in its discretion, consider such protests in making its
decision. Written protests may be withdrawn in writing at any time before
the conclusion of the public testimony portion of the public hearing.
C. At the time and place fixed for the hearing, or at any time to which the
hearing is adjourned, the Council must:
Hear all persons intPrPgtrd in the matter of the nronnsed fee
r-r-
increase;
2. Hear all objections, protests or other written communications from
any owner of property subject to the proposed utility fee; and
3. Take and receive oral and documentary evidence pertaining to the
proposed fee increase.
4. The hearing may be continued from time to time, as the Council
determines necessary to complete its consideration of the proposed
fee increase.
5. If the Council determines, at the close of the public testimony
portion of the public hearing, that votes were received from
Page 4 of 6
63
property owners representing a majority of the parcels subject to
the proposed fee increase, the Council shall adopt a resolution
setting forth the results of the protest ballot process and the
proceedings shall then be closed and the utility fee cannot be
approved by the City Council.
If the Council determines at the close of the public testimony
portion of the public hearing that written protests were not received
from property owners representing a majority of the parcels subject
to the proposed utility fee, the Council shall adopt a resolution
setting forth the results of the protest ballot process and then may
by Ordinance change the utility fee so long as in an amount that
does exceed the amount and methodology set forth in the public
notices sent to the property owners.
SECTION 9: Environmental Review. This Resolution is exempt from review under the
California Environmental Quality Act (California Public Resources Code §§ 21000, et
seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et
seq.) because it establishes rules and procedures to implement government funding
mechanisms; does not involve any commitment to a specific project which could result in
a potentially significant physical impact on the environment; and constitutes an
organizational or administrative activity that will not result in direct or indirect physical
changes in the environment. Accordingly, this Resolution does not constitute a "project"
that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).
SECTION 10. If any part of this Resolution or its application is deemed invalid by a
court of competent jurisdiction, the city council intends that such invalidity will not affect
the effectiveness of the remaining provisions or applications and, to this end, the
provisions of this Resolution are severable.
SECTION 11: The City Clerk is directed to certify the passage and adoption of this
D— 1„+:.+.• A '+— be entered inn- tha Pity ^-FW1 QaminAn", b��k �f nrirrinn1
1\V3%JAUL1V11, Ulll cause 1L LW V11L1 LA 111LV V Vi La FJvbwaMV ++b+++w+
Resolutions.
SECTION 12: This Resolution will take effect immediately day following its final
passage and adoption.
Page 5 of 6
PASSED AND ADOPTED this 16th day of, 2014.
S aann uentes, Mayor
ATTEST:
(i A &'-, � (6)a-& t- �-)
Tracy Weald City Clerk
APPROVED AS TO FORM
MARK D. HENSLEY, City Attorney
By:
Karl H. Berger, Assistant City Attorn
Page 6 of 6
65
RESOLUTION NO.
A RESOLUTION DECLARING THE RESULTS OF THE PROCEEDINGS
FOR ADOPTING WATER CHARGES IN ACCORDANCE WITH
ARTICLE XIIIO OF THE CALIFORNIA CONSTITUTION.
The City Council of the city of EI Segundo does resolve as follows: SECTION 1: The City Council
finds and declares 'as follows:
On February 16, 2021, the City Council held a public hearing to consider the results of protest
proceedings conducted in accordance with California Constitution Article XIIID, § 6(a)(2) and
Resolution No. 4888; and
After receiving documentary and oral testimony, the City Council declared the public hearing closed
and considered whether written protests were received from property owners representing amajority
of properties subject to the water and wastewater charges.
SECTION 2 The total number of protest ballots mailed or provided to property owners eligible
to file a protest ballot was 4,206 for water and 4,155 for wastewater. The number of valid
protest ballots received by the City at the end of the February 16, 2021 public hearing was
for water and for waste water.
SECTION 3: The number of valid protest ballots required to prevent adoption of the proposed water
charges is 2,104 or more and for wastewater charges is 2,079 or more. Because the number of valid
protest ballots received by the City [_does =does not] represent a majority of property owners
eligible to protest, the City Council [ may may not] adopt the proposed water and
wastewater charges.
SECTION 4: The City Clerk will certify to the passage and adoption of this Resolution and enter it
into the book of original resolutions.
SECTION 5: This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this 16h day of February, 2021
Drew Boyles, Mayor
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
By: Mark D. Hensley, City Attorney
67
follows:
ORDINANCE NO.
AN ORDINANCE SETTING THE AMOUNT OF
WATER AND SEWER RATES AND CHARGES
PURSUANT TO HEALTH AND SAFETY CODE §5471
AND EL SEGUNDO MUNICIPAL CODE § 11-1-5.
The City Council of the City of El Segundo does ordain as
SECTION 1: The City Council finds and declares as follows:
A. The City of El Segundo requires a reliable supply of water meeting current
and anticipated water quality standards to protect the public general
welfare, health and safety.
B. The purpose of water rates and charges is to protect the public
health, safety and general welfare by providing a reliable and adequate
supply of water meeting current and anticipated water quality standards
for the residential properties and non-residential properties of the City
of El Segundo and to pay for the cost of providing such service.
C. The purpose of the wastewater rates and charges (sewer charges) is
to protect the public health, safety and general welfare by providing a
reliable and adequate system for the discharge, transmission and
treatment of wastewater from residential and non-residential properties
located within the City.
D. There is a reasonable relationship between the amount of the rates
and charges and the cost of services and facilities necessary to deliver
water and wastewater service to the residents and non-residential
development of the City.
E. The City Council previously set water rates and established administrative
procedures for billing and collecting water rates. These actions are
reflected, without limitation, in Ordinance No. 1501 (adopted February
3, 2015).
F. The City Council previously set wastewater rates and established
administrative procedures for billing and collecting sewer rates. These
actions are reflected, without limitation, in Ordinance No. 1501 (adopted
February 3, 2015).
G. Notice regarding the water and sewer rates included in this ordinance
was provided in accordance with California Constitution Article XIIID, §
6(c) and Government Code § 54354.5.
•y
H. On February 16, 2021, the City Council held a public hearing to consider
the results of the protest proceeding and to consider whether to increase
the water and sewer rates as proposed.
I. This Ordinance is exempt from review under the California Environmental
Quality Act (Cal. Pub. Res. Code §§ 21000, et seq.; "CEQA") and CEQA
regulations (Cal. Code Regs. tit. 14, §§ 15000, et seq.) because it
establishes, modifies, structures, restructures, and approves rates and
charges for meeting operating expenses; purchasing supplies, equipment,
and materials; meeting financial requirements; and obtaining funds for
capital projects needed to maintain service within existing service areas.
This Ordinance, therefore, is categorically exempt from further CEQA
review under Cal. Code Regs. tit. 14, § 15273.
J. This ordinance is adopted in accordance with Health and Safety Code
§ 5471 and El Segundo Municipal Code ("ESMC") § 11-1-5 to
establish the City's current water rates and ESMC § 12-7-3 to establish
the City's current wastewater rates.
K. The City Council has considered the evidence and testimony presented
at the public hearing. Based in part upon that evidence, and the staff
reports presented to the City Council regarding this issue, the City Council
believes that it is in the public interest to adopt this Ordinance.
SECTION 2: AMOUNT OF RATES AND CHARGES. Pursuant to ESMC §
11-1-5, the City Council establishes the amount of water rates as set forth in
attached Exhibit 'A" which is incorporated by reference ("Water Charges").
Pursuant § 12-7-3. The City Council establishes the amount of wastewater
rates as set forth in attached Exhibit "B," which is incorporated by reference
("Wastewater Charges").
SECTION 3: COST ESTIMATES. The City Manager, or designee, will
periodically, but not less than annually, review the Water and Wastewater
Charges to determine whether revenues from such charges are meeting actual
cost of services and facilities needed to deliver water service and provide waste
collection services to the residents and non-residential developments within the
City. If the City Manager determines that revenues do not adequately meet
costs, the City Manager will recommend to the City Council a revised rate and
charge schedule to be adopted by this City Council by ordinance.
SECTION 4: This Ordinance was adopted to comply with the California Supreme
Court decision in Bighorn -Desert View WaterAgency v. Verjil (2006) 39 CalAth
205. To the extent any provision of this Ordinance repeals or supersedes
Ordinance No. 1501, such repeal or replacement will not affect any penalty,
forfeiture, or liability incurred before, or preclude prosecution and imposition of
penalties for any violation occurring before, this Ordinance's effective date. Any
such repealed or superseded part of Ordinance No. 15 01 will remain in full
force and effect for sustaining action or prosecuting violations occurring before69
the effective date of this Ordinance.
SECTION 5: If any part of this Ordinance or its application is deemed invalid
by a court of competent jurisdiction, the City Council intends that such
invalidity will not affect the effectiveness of the remaining provisions or
applications and, to this end, the provisions of this Ordinance are severable.
SECTION 6: The City Clerk is directed to certify the passage and adoption
of this Ordinance; cause it to be entered into the City of El Segundo's book
of original ordinances; make a note of the passage and adoption in the
records of this meeting; and, within fifteen (15) days after the passage and
adoption of this Ordinance, cause it to be published or posted in accordance
with California law.
SECTION 7: This Ordinance will become effective on the thirty-first (31 st) day
following its passage and adoption.
PASSED AND ADOPTED this 2"d day of March, 2021
Drew Boyles, Mayor
ATTEST:
STATE OF CALIFORNIA }
COUNTY OF LOSANGELES } SS CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby verify
that the whole number of members of the City Council of said City is five; that the
foregoing Ordinance No. was duly introduced by said City Council at a regular
meeting held on the 16th day of February, 2021, and was duly passed and adopted
by said City Council, approved and signed by the Mayor, and attested to by the
City Clerk, all at a regular meeting of said Council held on the 2nd day of March,
2021, and the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
79
Mark D. Hensley, City Attorney
Mark D. Hensley, City Attorney
741
Exhibit A
Proposed Water Rates
The City proposes to adopt the rates as shown in the following tables. The proposed rate structure includes two components: 1) a fixed
monthly charge that isbilled regardless of water use and is shown in the first table, and 2) a volumetric chargebilled for each unit of metered
wateruse as shownin the second table. The Single -Family Residential class has tiered rates withthe tierbreakpoints as shown. The volume
rate applies to each hundred cubic feet (Ccf) of water use; one hundred cubic feet (Ccf) equals 748 gallons.
METER CHARGES/FIXED MONTHLY CHARGE
Meter Size (inches) April 1, 2021 January 1, 2022 January 1, 2023 January 1, 2024 January 1, 2025
5/8 and 3/4' 18.18 18.73 $19.30 $19.88 20.48
1"
$24.71
$25.46
$26.23
$27Z2
$27.84
1 1 /2"
$41.05
$42.29
$43.56
$44.87
$46.22
2"
$60.65
$62.47
$64.35
$66.29
$68.28
X
$122.74
$126.43
$130.23
$134.14
$138.17
4"
1214.23
$220.66
$227.28
$234.10
$241.1
6"
$433.16
$446.16
$459.55
$473.34
$487.55
8"
$923.29
$950.99
$979.52
1,1,008.91
$1,039.18
10"
$1,380.75
1 $1,422.18
$1,464.85
$1,508.80
$1,554.07
As shownin the tablebelow the tier structure in the proposed rates will be changing. For Residential usage, tiers will go fromfour tier levels
to three. For Non -Residential usage, tiers will go from four tier levels to a single uniform rate.
Volumetric April 1, 2021 January 1, 20Z2 I January 1, 2023 January 1, 2024 January 1, 2025
Residential
Tier 1
$2.88
$2.97
$3.06
$ 3.16
$3.26
Tier II
$5.47
$5.64
$5.81
$5.99
$6.17
Tier III
$6.86
$7.07
$7.29
$7.51
$7.74
Non -Residential
$4.17
$4.30
$4.43
$4.57
$4.71
Chevron
$4.90
$5.05
$5.21
$5.37
$5.54
Recycled Water Rates
Recycled water rates from WestBasinwill continue to be directly passed throughto the customer. The customerwill also pay the fixed charge
as shownbelow. Most non -city recycled users will no longer pay a surcharge, and the surcharge to Chevron will increase as shownbelow.2
Meter Size (inches) April 1, 202 January 1, 2OZ3
5/8" and 3/4" 18.18 18.73 19.30
January 1, 2024 WAWJZ�
$19.88 $20.48
1"
$24.71
$25.46
$26.23.
$27.02
$27.84
1 1 /2"
$41.05
$42.29
$4156
3,44.87
$46.22
2"
$60.65
$62.47
$64.35
$66.29
$68.28
Y
$122.74
$126.43
$130.23
$134.14
$138.17
4"
$214.23
$220.66
$227.28
$234.10
$241.13
6"
$433.16
$446.16
$459.55
$473.34
$487.55
8"
$923.29
1 $950.99
$979.52
$1,008.91
$1,039.18
10"
$1,380.75 j
$1,422.18
$1,464.85
$1,508.80
$1,554.07
1Notethe water consumption/volumetric chargeisbased uponcurrent anticipated rateincreases from WestBasin Municipal WaterDistrict. If the District
increases or decreases these anticipated rate increases, thecharges shownwill be increased or decreased consistent with these rate changesby WestBasin.
2Direct WestBasin recycled rates are not shown inthis notice. If the District increases or decreases these rates, the City'scharges to the customer will
change consistent with these changes by West Basin.
NOTICE OF PUBLIC HEARING ON PROPOSED WATER AND WASTEWATER RATE INCREASE 2
72
Exhibit A
Private Fire Protection Rates
The City proposes to charge private fire protection rates, shown in the following table, to customers with private fire protection connections to
cover costs associated with maintaining the capacity to fight fires. This charge only applies to customers with private fire connections.
5/8" and 3 4'
8.73
9.00
9.27
9.55
9.84
1"
$9.13
$9.41
$9.70
$, 10.00
$10.30
1 1 /2"
$10.56
$10.88
$11.21
$11.55
1, 11,90
2"
$13.03
$13.43
13.84
$14.26
$14.69
3"
$21.90
$22.56
$23.24
$23.94
$24.66
4"
$37.20
$38.32
$39.47
$40.66
$4 .88
6"
$92.11
$94.88
$97.73
1 $100.67
$103.70
8"
$186.83
$192.44
$198.22
$204.17
$210.30
10"
$329.29
$339.17
$349.35
W9.84
$370.64
NOTICE OF PUBLIC HEARING ON PROPOSED WATER AND WASTEWATER RATE INCREASE 3
73
Exhibit B
Proposed Wastewater Rates
The current wastewater charges include a fixed monthly charge and a volumetric charge. Single family residential customers will be billed
a flatrateeachmonth.Otherclasses willhaveaminimum fixed charge assuming 9 Ccf, alongwithadditional volumetriccharges forusage
above the 9 Ccf minimum. The volume rate and minimumbill amount depends on whether the resident is in the west side or east side.'
SFR $39.07
$42.60 $46.65
$51.09
$5,5.95
MFR
$39.07
$42.60 $46.65
$51.09
$55.55
Institutional West
$39.07
$42.60 $46.65
$51.09
$55.95
Commercial West
$58.23
$63.47 $69.50
$,76.11
$83.35
Industrial West
$65.22
$71,10
$77.86
$85.26
$93.36
Non -Res East
$14.86
$16.21
$17.75
$19.44
$21.29
ADU
$16.02
$17.47
$19.13
$20.95
$22.95
N/A N/A
N/A
N/A
SFR
N/A
MFR
$4.01
$4.37
$4.79
$5.25
$5.75
Institutional West
$4.01
$4.37
$4.79
$5.25
$5.75
Commercial West
$6.13
$6.69
$7.33
$8.03
$8.80
Industrial West
$6.91
$7.54
$8.26
$9.05
$9.91
Non -Res East
$L32
$1.44
$1.58
$1.74
$1.91
I Note the wastewater rates are based upon current anticipated treatment rate increases from the City of Los Angeles. If the City of Los Angeles increases or
decreases these anticipated rate increases, the charges shown will be increased or decreased consistent with these rate changesby the City of Los Angeles.
NOTICE OF PUBLIC HEARING ON PROPOSED WATER AND WASTEWATER RATE INCREASE 3
74
CITY OF
ELSEGUNDO
TITLE:
City Council Agenda Statement
Meeting Date: December 15, 2020
Agenda Heading:Staff Presentation
Review of water and wastewater rate studies, direct staff to commence with Proposition
218 protest procedures regarding proposed water and sewer rates for FY 2020-2021
through 2024-2025, and set a public hearing to consider an ordinance adjusting water
and wastewater rates and fees.
RECOMMENDATION:
1. Receive potable water and recycled water rate study presentation and proposed
potable and recycled water rate adjustments
2. Receive wastewater rate study presentation and proposed wastewater rate
adjustments
3_ Direct staff to implement Proposition 218 protest ballot procedures for proposed
potable water, recycled water, and wastewater rate adjustments
4. Adopt a resolution establishing procedures for mailing, handling and counting
Proposition 218 ballots
5. Set a Public Hearing on F e b r u a r y 16, 2021 for Council consideration
of the proposed water, recycled water, and wastewater rate adjustments.
FISCAL IMPACT:
As proposed, water and wastewater rates will be adjusted over the next five fiscal years
as follows:
Utility
FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25
Water
0%
3%
3%
3%
3%
Wastewater
9%
9%
9.5%
9.5%
9.5%
Water rates are proposed to adjust on January 1 of each year from January 1, 2022 to
January 1, 2025. Wastewater rates are proposed to adjust on April 1, 2021 and then on
January 1 of each year from January 1, 2022 to January 1, 2025.
These proposed adjustments are necessary to ensure that the operating budgets of both
the Water Fund and Wastewater Fund remain balanced in each fiscal year. The
Wastewater Fund will not be structurally balanced until the end of FY 2024-25.
757
Water & Wastewater Rates Prop 218
December 15, 2020
Page 2 of 14
BACKGROUND:
The City of El Segundo owns and operates its own water and wastewater collection
systems. These operations are set up as separate business enterprise funds, which are
distinctly separate (financially) from the City's G e n e r a l F u n d. As an enterprise,
each operation is responsible for covering its own expenses and likewise generates
its own income, making each self-sustaining. However, California's Proposition 218 (the
"Right to Vote on Taxes Act" of 1996) governs how municipalities can raise
w a t e r/ w a s t e w a t e r rates to cover the expenses associated with operating each
enterprise. Per Proposition 218, rates may be established for up to five years.
Thereafter, a new Prop 218 process would is required. The last time the City initiated
a Prop 218 protest ballot process for water and wastewater rates was in 2014. The
ability to raise water and wastewater rates any further has expired. Thus, in order to
establish new water and wastewater rates for the next five years, the City must now
conduct a new Proposition 218 protest ballot process.
Water Fund Financial Plan
The revenue calculated for each fiscal year in the Financial Plan is a function of the
number of accounts, account growth, water use trends, and existing rates. Based on
discussions with City staff. The Financial Plan assumes a conservative 0% growth in
customer accounts and per capita water usage.
Table 1 shows the estimated FY 2019-2020 number of accounts and water use by
customer class. The number of accounts and water use are based on FY 2018-2019
account and water use data and the assumption of no growth. The number of accounts
in Table 1 does not include Fire Protection accounts.
Table 1: Water Use in Ccf by Customer Class - FY 2019
SFR
2,998
361,251
60.7%
5.0%
Non-Residential/Multi-Family
1,878
1,184,820
38.0%
16.3%
Chevron
1,559,501
21.4%
Recycled
66
4,174,777
1.3%
57.3J
Total
4,942
7,280,349
100.0%
100.0%
M
Water & Wastewater Rates Prop 218
December 15, 2020
Page 3 of 14
To ensure future Operating and Maintenance (O&M) costs are reasonably projected,
informed assumptions about inflationary factors, water costs, and water use were
identified. Table 2 shows the inflationary categories used to escalate the City's FY 2019-
2020 O&M expense budget, which is part of the Financial Plan. The inflationary factors
in Table 2 reflect long-term averages for general and capital (construction) inflation and
energy prices.
Table 2: Inflationary Assumptions
1
Salaries
3.0%
3.0%
3.0%
3.UOA
J.u/0
2
Benefits
8.0%
8.0%
8.0%
8.0%
8.0%
3
Supplies
3.0%
3.0%
3.0%
3.0%
3.0%
4
Electricity
5.0%
5.0%
5.0%
5.0%
5.0%
5
Fuel
3.0%
3.0%
3.0%
3.0°%
3.0%
6
Contractual
3.0%
3.0%
3.0%
3.0%
3.0°%
7
Purchased Water - Potable
6.0%
6.0%
6.0%
6.0%
6.0°%
8
Purchased Water - Reclaimed
6.0%
6.0%
6.0%
6.0%
6.0%
9
Equipment
3.0%
3.0%
3.0%
3.0%
3.0%
10
General
3.0%
3.0%
3.0%
3.0%
3.0%
11
Sewage Treatment
6.0%
6.0%
6.0%
6.0%
6.0°%
12
Capital Projects
3.1°%
3.1%
3.1%
3.1%
3.1%
The data and assumptions shown in Table 2 were used to develop the City's Water
Financial Plan. The plan uses projected annual operating expenses and revenues,
capital expenditures, and reserve fund balances to estimate the amount of additional rate
revenue needed each year. The following sub -sections provide a discussion of O&M
expenses, Capital Improvement Plan (CIP), reserve funding, projected revenue under
existing rates, and revenue adjustments needed to ensure the fiscal sustainability and
solvency of the Water Enterprise.
The total expenses related to operating a municipal water department can be broken
down into three basic categories, which have certain associated costs. These include:
® Purchase of the actual commodity - potable and recycled water
P O&M (staff salaries/benefits, utilities, maintenance, supplies, insurance/ claims,)
R Capital Program (infrastructure improvements and replacements)
7W
Water & Wastewater Rates Prop 218
December 15, 2020
Page 4 of 14
Each of these categories are further described below.
Table 3 shows the City's O&M budget by fiscal year. The O&M budget incorporates the
inflationary factors in Table 2, using the FY 2020 budget as the base year. Approximately
84% of the O&M budget is water purchase costs, which are not directly controlled by the
City.
Table 3: Projected O&M Expenses
1 Salaries
$ 1,160,791
5 1.195,615 5
1,231.483
2 Benefits
649,147
701,079
757,165
3 Supplies
249,800
256,264
263,952
4 Utilities
31,80C
33,366
35,010
5 Potable Water
10,573,713
11,166,623
11,836,620
6 Recycled Water
13,227,296
13,574,090
14,388,535
7 Service fharges
2,445,867
2,519,243
2,594,820
8 Total: Water Operating Expenses
5 28,337,414
5 29,446,280 5
31,107,586
$ 1,269,429 5 1,306,48C $ 1,345,675
817,738
893,157
953,81C
271,870
280.027
289,427
36,735
38,545
40,445
12, 546, 818
13,299,627
14,097, 604
15,251.848
16,166,958
17,136,976
2,672,665
2,752.845
2,835,43C
5 32,866,101 5 34,727,639 5 36,698,368
Table 4 summarizes the City's five-year Capital Improvement Plan (CIP). The City is
funding capital investment through rate revenue and reserve funds (also known as PAY -
GO funding) rather than issuing debt.
Table 4: CIP
1 Water Main Improvement on Grand Ave. $1,500,000 - -
2 Water Infrastructure Replacement - 2,300,000 3,000,000 3,000,000 3,000,000 3,000,000
Debt Service
The City does not currently have any outstanding utility debt and the Financial Plan
does not propose issuing any bonds in the study period.
Reserve Policies
City Council previously discussed reserve policies for the Water Enterprise. Based on
City Council direction, the City should maintain the following in reserves:
Operating Reserve equal to four months of O&M expenses Capital Reserve equal
to the average annual forecasted capital spending of the next 10 years. Rate
Stabilization Reserve equal to 25% of annual potable and surcharge revenue
3
Water & Wastewater Rates Prop 218
December 15, 2020
Page 5 of 14
The water utility currently has sufficient cash to fully fund each of these reserves.
A Financial Plan was developed using projected operating and capital expenses,
revenues, and resulting yearly cash balances for the Financial Plan study period - from
FY 2020-2021 to FY 2024- 2025. The Financial Plan is used to determine the overall
revenue adjustments required to ensure water enterprise financial stability. Revenue
adjustments represent the average increase in rates as a whole; rate changes for
individual classes will depend on the cost of service — since a cost of service analysis
allocates costs to each customer class. Therefore, the revenue adjustment may not be
the same as the average bill impact for each customer class. This study establishes rates
for FY 2020-2021 through FY 2024-2025.
The proposed revenue adjustments will help ensure adequate revenue to fund operating
expenses, capital expenditures, and compliance with any bond covenants. Financial Plan
modelling assumes revenue adjustments will occur in January of each year. The
proposed revenue adjustments would enable the City to cover operating expenses and
execute the CIP shown in Table 4.
Table 5 shows the proposed revenue adjustments selected by the City. The rates
presented are based on these revenue adjustments.
Table 5: Proposed Rate Adjustments
Water Revenue Adjustment 0.0% 3.0% 3.0% 3.uro s.u-ro
Table 6 shows the City's cash flow projection over the study period assuming the revenue
adjustments shown in Table 5. Line 1 shows water rate revenue, including the fixed
monthly capacity charge and volume charge. Line 2 shows the revenue from the
surcharge applied to recycled water by the City. Line 3 shows the additional revenue from
the revenue adjustments. Revenue on line 4 shows the charges from West Basin the
City passes through and collects from recycled customers; this revenue equals the
expense on line 6 of Table 3.
Line 11 shows the yearly ending cash flow after subtracting operating and capital
expenses from total revenue (in line 6). Non -Rate revenue includes meter installations,
interest income, and other miscellaneous items. Balances for each of the reserve funds
are tracked in lines 12 to 14.
701
Water & Wastewater Rates Prop 218
December 15, 2020
Page 6 of 14
Table 6: Five -Year Water Operating Cash Flow
1
Revenues
Fixed Monthly
$
16,456,948
$16,456,948 $
16,456,948
$ 16,456,948 $
16,456,948
$16,456,948
2
Recycled Surcharge
4,168,194
4,161,513
4,161,513
4,161,513
4,161,513
4,161,513
3
Additional Revenue
-
-
463,915
1,096,387
1,747,832
2,418,821
4
Recycled Pass -through
13,227,296
13,574,090
14,388,535
15,251,848
16,166,958
17,136,976
5
Non -Rate Revenue
171,34D
141,985
130,777
135,826
139,316
140,827
6
Total: Revenue
$
34,023,798
$34,334,536 $
35,601,689
$ 37,102,521 $
38,672,567
$40,315,085
7
Revenue Adjustment
0.00%
3.009A
3.00%
3.00%
3.009A
Expenses
8
O&M
$
28,337,414
$29,446,280 $
31,107,586
$ 32,866,101 $
34,727,639
$36,698,368
9
Capital
4,750,OOD
2,650,0010
3,350,000
3,400,00
3,500,00D
3,600,OQO
10
Total: Expenses
$
33,087,414
$32,096,280 $
34,457,586
$ 36,266,101 $
38,227,639
$40,298,368
11
Op. Surplus/(Deficit)
$
936,384
$ 2,238,257 $
1,144,103
$ 836,420 $
444,928
$ 16,717
12
Op. Reserve
22,685,032
20,443,420
21,453,127
22,151,119
22,453,466
22,323,325
13
RS. Reserve
-
4,479,869
4,614,265
4,752,693
4,895,274
5,042,132
14
Cap. Reserve
3,250,000
3,528,930
3,690,666
3,803,884
3,915,540
4,022,497
15
Total Reserve
$
25,935,032
$28,452,219 $
29,758,058
$ 30,707,696 $
31,264,280
$31,387,954
16
Target Balance
17,027,569
17,648,839
18,511,590
19,341,568
20,213,075
21,128,369
17
CIP (Uninflated)
1,500,000
2,300,000
3,000,000
3,000,000
3,000,000
3,000,000
Proposed Water Rates - Fixed Charge and Volumetric Rates
Table 7 shows the derivation of the monthly fixed service charge by meter size in column
A, which is the addition of columns D through G. The water supply, meters, and public
fire charges increase in proportion to AWWA Capacity ratios (shown in column B), while
the customer charge is the same at each meter size (column F).
Table 7: Monthly Service Charge Derivation by Meter Size
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
1 5/8" and 3/4"
1.00
3,152 $
1.25 $
3.91 $
8.37
$ 4.63
$ 18.17
2 1"
1.67
859
2.09
6.52
8.37
7.72
24.71
3 11/2"
3.33
359
4.18
13.05
8.37
15.45
41.04
4 2"
5.33
350
6.69
20.87
8.37
24.71
60.65
5 3"
11.67
83
14.64
45.66
8.37
54.06
122.73
6 4"
21.00
42
26.35
82.19
8.37
97.31
214.23
7 6"
43.33
29
54.38
169.61
8.37
200.80
433.15
8 8"
93.33
1
117.12
365.31
8.37
432.50
923.29
9 101,
140.00
1
175.67
547.96
8.37
648.74
1,380.75
Water & Wastewater Rates Prop 218
December 15, 2020
Page 7 of 14
Table 8 shows the proposed monthly Fixed Service Charge for the next five fiscal years.
They are derived by applying the revenue adjustments shown in Table 5 to the service
charges for FY 2020 shown in Table 7. Charges are rounded up to the nearest whole
penny and may not match the unrounded values in Table 7.
Table 8: Five Year Fixed Service Charges
5/8" and 3/4"
$ 11.95
$ 18.18
$ 18.73
$ 19.30
$ 19.88
$ 20.48
1"
27.10
24.71
25.46
26.23
27.02
27.84
11/2"
33.94
41.05
42.29
43.56
44.87
46.22
2-'
62.90
60.65
62.47
64.35
66.29
68.28
3-'
141.61
122.74
126.43
130.23
134.14
138.17
4"
251.25
214.23
220.66
227.28
234.10
241.13
6"
469.74
433.16
446.16
459.55
473.34
487.55
8"
823.49
923.29
950.99
979.52
1,008.91
1,039.18
10"
1,288.35
1,380.75
1,422.18
1,464.85
1,508.80
1,554.07
Table 9 shows the proposed five-year volumetric rates by escalating the volumetric rates
derived in Table 10, which have been rounded to the nearest whole penny, by the
proposed revenue adjustments shown in Table 5.
Table 9: Five -Year Volumetric Rates
Residential
Tier 1 $ 2.82 $ 2.88 $ 2.97 $ 3.06 $ 3.16 $ 3.26
Tier 2 5.19 5.47 5.64 5.81 5.99 6.17
Tier 3 5.90 6.86 7.07 7.29 7.51 7.74
Non -Residential $ 3.43 $ 4.17 $ 4.30 $ 4.43 $ 4.57 $ 4.71
Chevron $ 3.43 $ 4.90 $ 5.05 $ 5.21 $ 5.37 $ 5.54
Table 10 shows the total volumetric rate derivation for all customers in FY 2019-2020,
which is the summation of all rate components.
Water & Wastewater Rates Prop 218
December 15, 2020
Page 8 of 14
Table 10: Derivation of Rates by Tier and Class
(A) (B)
Single Family Residential
1 Tier 1 $
2 Tier 2
3 Tier 3
4 Non-Residential/Multi -Family
5 Chevron
(C)
(D)
(E)
(F)
(G)
3.35 $
1.66 $
0.33 $
(0.08) $
(2.38) $
2.88
3.35
1.66
1.05
-
(0.59)
5.47
3.35
1.66
1.84
6.85
3.35
1.66
0.89
(0.06)
(1.67)
4.17
3.35
1.66
0.96
(0.06)
(1.02)
4.90
The following table presents a comparison of a 10 Ccf bill (Typical Household) in El
Segundo in FY2019-2020 and FY 2020-2021 to equivalent bills in several comparable
communities in 2020. The City's current rates are lower than many others and continue
to compare favorably into the future.
Table 11: Water Bill Comparison (typical family)
$123.01
$49.57
60.37 $62.42 $65.80 $67.77 $68.73
$73.06
$53.39 $55.97 $
$40.15
ElSegundo El Segundo Hermosa Inglewood GS Water CA American CA Water Manhattan CA Water PV Lomita LA County
Current Proposed 2021 Beach Hawthorne Beach Waterworks
r Fixed a Variable ■ Surcharges
•m
Water & Wastewater Rates Prop 218
December 15, 2020
Page 9 of 14
Wastewater Fund Financial Plan
The City of El Segundo is responsible for the O&M of an extensive wastewater collection
system; however, does not provide wastewater treatment. Wastewater on the east side
of the City is sent to Los Angeles County Sanitation District (LACSD) for treattment. The
County bills those customers directly on their annual property tax bills. Wastewater from
the west side is treated by the City of Los Angeles, which bills the City of El Segundo.
The City currently has three sets of rates. Customers on the west side pay a monthly
treatment fee based on meter size and which varies by customer class. All customers pay
a monthly service fee which also varies by meter size and class. Table 12 presents the
current rates in effect in FY 2019-2020.
Table 12: Current Wastewater Service Charges
Treatment Fee
3/4"
$
16.63
$
27.48
$
19.62 $
19.62
$
16.27
$
16.27
$
15.38
$
15.38
1"
21.15
38.50
48.97
48.97
21.99
21.99
24.35
24.35
11/2"
22.87
58.74
90.18
90.18
63.55
63.55
37.06
37.06
2"
24.29
131.73
237.73
237.73
193.99
193.99
56.19
56.19
3"
447.75
440.61
440.61
486.29
486.29
139.34
139.34
4"
616.10
1,882.76
1,882,76
690.89
690.89
165.00
165.00
6"
1,882.76
1,882.76
690.89
690.89
165.00
165.00
Service Fee
3/4"
$
6.60
$
10.56
$
7.26
$
6.60
$
7.26
$
6.60
$
6.60
1"
7.92
14.85
18.81
7.26
7.92
18.15
9.24
9.24
1 1/2"
8.58
22.44
33.00
46.21
24.42
33.00
13.86
13.86
2"
9.24
49.50
85.81
132.00
72.60
72.60
19.81
19.81
3"
171.62
184.81
184.81
184.81
297.02
52.81
52.81
4"
231.02
693.05
297.02
264.02
462.03
66.00
66.00
6"
693.05
759.05
264.02
1,254.10
66.00
66.00
Volume Charge
$
0.73
$
0.91
$
1.04 $
1.04
$
1.04
$
1.04
$
0.91
$
0.91
NUMBER OF ACCOUNTS AND WATER USE
Table 13 shows the number of wastewater accounts and the wastewater flow (based on
water use for wastewater customers) in Ccf for each customer class in FY 2019. As with
the water utility demand projection, the Financial Plan assumes no growth in customer
accounts or increased wastewater generation, on a per capita basis, in future years.
Water & Wastewater Rates Prop 218
December 15, 2020
Page 10 of 14
Table 13: Wastewater Accounts and Wastewater Use in Hundred Cubic Feet
3/4"
2,605
247
161
-
115
1
1"
381
276
92
10
50
21
1 1/2'
6
219
31
48
21
16
2"
2
101
24
87
19
69
3"
3
3
28
2
7
4"
5
4
13
3
13
6„
1
10
1
15
2,994
951
316
196
211
142
Use (Ccf)
361,205
267,389
118,555
309,014
51,309
344,064
16 3,145
12 842
5 346
16 4 322
7 1 51
3 1 42
- - 27
59 6 4,775
20,052 14,492 1,486,080
WASTEWATER O&M EXPENSES
Wastewater O&M expenses were projected by applying the inflation factors in Table 2 to
the FY 2020 O&M budget. Table 14 summarizes the budgeted and projected O&M
expenses during the Study period. The forecast of treatment fees for the study period is
based on the projections provided by the City of Los Angeles. Based on actions taken
by the City of Los Angeles, wastewater treatment costs will increase significantly in 2021.
Table 14: Projected Wastewater O&M Expenses
Salaries
$ 581,630 S
599,079 $
617,051 $
635,563 5
654,630 $
674,269
Benefits
355,099
383,507
414,187
447,322
483,108
521,757
Supplies
97,800
100,734
103,756
106,869
110,075
113,377
Utilities
65,000
68,172
71,500
74,993
78,657
82,502
Treatment Fees
1,999,993
2,737,200
2,882,500
2,829,200
2,562,800
2,834,900
ServicelCharges
1,100,412
1,133,42-4
1,167,427
1,202,45.0
1,238,523
1,275,679
Total: Sewer Operating Expenses $ 4,199,934 S 5,022,116 $ 5,256,422 $ 5,296,396 $ 5,127,793 S 5,502,484
Table 15 summarizes the City's five-year CIP. The proposed capital improvement
program will be funded entirely through rate revenue and reserve funds, also known as
PAY -GO funding, rather than issuing debt.
Table 15: Wastewater Capital Improvement Projects
Lifeguard Pump Station S 650,000 S 1 $ $ 5 S
Wastewater Infrastructure Replacement 150,000 500,000 500,000 500,000 500,000
Water & Wastewater Rates Prop 218
December 15, 2020
Page 11 of 14
The City should maintain the following reserve policies:
Operating reserve equal to four months of O&M expenses
Capital reserve equal to the average annual forecasted capital spending of the
next ten years
The wastewater utility is currently achieving approximately 60% of this target and is
forecasted to sustain significant deficits in the future without revenue adjustments.
Table 16: Wastewater Fund Balance Forecast
Operating Reserve
$ 1,088,392 $
420,S52 $
149,949 $
839,873
$ 1,803,442
Target
1,651,107
1,728,139
1,741,281
1,685,850
1,809,036
Capital Reserve
$ 45,365 $
413,988 $
816,191 $
951,467
$ 1,019,293
Target
716,883
806,240
861,161
917,779
976,146
Total Reserves
$ 1,133,757 $
834,539 $
966,140 $
1,791,340
$ 2,822,735
Target
2,367,990
2,534,379
2,602,442
2,603,628
2,785,182
To ensure that the Wastewater Enterprise has adequate revenues to fund operating and
capital expenditures, as well as funds sufficient reserves, revenue adjustments in Table
17 are recommended. The City has not implemented a wastewater rate increase since
2016. As a result, significant adjustments are needed at this time requiring significant
adjustments. The proposed rate adjustments will allow the City to achieve its reserve
targets by 2025.
Table 17: Proposed Wastewater Revenue Adjustments
Effective Month March 1 January I January I January 1 January 1
Wastewater Rate Adjustment 9.0% 9.0% 9.5% 9.5% 9.5%
Table 18 shows the cash flow projection with the proposed revenue adjustments from
Table 17. The proposed Financial Plan meets the City's financial needs by meeting long
term reserve goals. As indicated by the negative net cash flow, the City plans to use fund
balances to minimize customer impacts as much as possible. Figure 1 presents the
Financial Plan graphically.
Water & Wastewater Rates Prop 218
December 15, 2020
Page 12 of 14
Table 18: Wastewater Enterprise Proposed Financial Plan Pro -Forma
Revenues
Rate Revenue
$
4,493,170
$ 4,493,170 $
4,493,170
$ 4,493,170 $
4,493,170 $
4,493,170
Additional Revenue
-
303,289
734,970
1,225,522
1,768,797
2,363,684
Non -Rate Revenue
316,2Q0
261,015
260,442
257,1Q3
255,750
259,199
Total: Revenue
$
4,809,370
$ 5,057,474 $
5,488,582
$ 5,975,794 $
6,517,717 $
7,116,053
Rate Increase
9.00%
9.00•.6
9.50%
9.50%
9.50%
Expense
O&M
$
4,199,934
$ 5,022,116 $
5,256,422
$ 5,296,396 $
5,127,793 $
5,502,484
Transfer to Capital
700,000
150,000
900,000
950,000
700,00.0
650,000
Total: Expenses
$
4,899,934
$ 5,172,116 $
6,156,422
$ 6,246,396 $
5,827,793 $
6,152,484
Op. Surplus/(Deficit)
$
(90,564)
$ (114,642) $
(667,840)
$ (270,602) $
689,924 $
963,569
Op. Reserve
1,203,035
1,088,392
420,552
149,949
839,873
1,803,442
Cap. Reserve
50,000
45,365
413,988
816,191
951,467
1,019,293
Total Reserve
$
1,253,035
$ 1,133,757 $
834,539
$ 966,140 $
1,791,340 $
2,822,735
Target Balance
2,061,005
2,367,990
2,534,379
2,602,442
2,603,628
2,785,182
CIP (Uninflated)
650,000
150,000
500,000
500,000
500,000
500,000
Figure 1: Wastewater Financial Plan
Wastewater Total Fund Balance
Ln $3.0
0
$2.5
2
$ 2.0 .-
$1.0
$0.5
2020 2021 2022 2023 2024 2025
Combined Balance Target
Water & Wastewater Rates Prop 218
December 15, 2020
Page 13 of 14
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California
Environmental Quality Act (CEQA) and has determined that the activity is not a "Project"
as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA.
Thus, no environmental review is necessary.
NEXT STEPS:
An informational video will be available to the public on the City's website that
provides an educational overview on the proposed rates — December 2020
The Prop. 218 rate notices will be mailed out to property owners and tenants -
December 30, 2020
Along with the notices, a protest ballot for the proposed water rates and protest
ballot for the proposed wastewater rates will be included with the December 30,
2020 mailing
A self -use rate calculator will be available on the City's website for use by the public
to determine what the impacts of the proposed rates will be on their bill — December
2020
Ratepayers/Property owners will be able to submit a protest ballot - December 31,
2020 — February 16, 2021
Public hearing on the proposed water and wastewater rates — February 16, 2021
o Protest ballots will be counted by an independent third party
o If there is less than 50% of protest ballots received, the public hearing on
the rate changes can proceed and City Council can adopt the five-year rate
structure
® New wastewater rates take effect — April 1, 2021
Subsequent water and wastewater rate adjustments — January 1, 2022, January
1, 2023, January 1, 2024, and January 1, 2025
Water & Wastewater Rates Prop 218
December 15, 2020
Page 14 of 14
CITY STRATEGIC PLAN COMPLIANCE:
Goal: 5 Champion Economic Development and Fiscal Sustainability:
Objective: B El Segundo approaches its work in a financially strategic and
responsible way
ORIGINATED BY: Joseph Lillio, Chief Financial Officer
REVIEWEWD BY: Barbara Voss, Deputy City Manager
APPROVED BY: Scott Mitnick, City ManagerU�A ,
ATTACHED SUPPORTING DOCUMENTS:
1. Resolution regarding the Proposition 218 Procedures
2. Draft Proposition 218 Rate Notice to Parcel Owners and Renters
3. Sample Protest Ballot for Water and Wastewater Proposed Rates
4. Water (Potable & Recycled) & Wastewater Rate Study Report
N:asotelo\Scott\Staff Reports\Water Wastewater Report
c a+
CITY OF
I Segundo
Water and Wastewater Rate Study
Final Report / February 2020
RAFTELIS
:•
R RAFTELIS
February 10, 2021
Mr. Joseph Lillio
Director of Finance
City of El Segundo
350 Main Street
El Segundo, CA 90245
Subject: Water, Recycled Water, and Wastewater Rate Study Report
Dear Mr. Lillio,
Raftelis is pleased to present this water, recycled water, and wastewater rate study report. The rate study involved a
comprehensive review of the City's financial plan, an assessment of alternative tiered rate structures, and an
allocation of costs to customer classes and tiers using Cost of Service principles.
The report includes a brief Executive Summary followed by a detailed discussion regarding study assumptions and
an in-depth rate derivation.
It was a pleasure working with you and we wish to express our thanks for the support from you and your staff. If
you have any questions, please call me at 213 327 4405.
Sincerely,
Sanjay Gaur
Vice President
445 S Figueroa Street. Suite 2270
Los Angeles CA, 90017
www.raftells.com
WE
Table of Contents
1.
EXECUTIVE SUMMARY.............................................................1
1.1
BACKGROUND......................................................................................
1
1.2
METHODOLOGY....................................................................................1
1.3
RESULTS AND RECOMMENDATIONS................................................. 2
1.3.1
Factors Affecting Revenue Adjustments.................................................................2
1.4
WATER...................................................................................................2
1.4.1
Proposed Water Rates...............................................................................................2
1.4.2
Fixed Service Charge.................................................................................................3
1.4.3
Potable Commodity Rate...........................................................................................3
1.4.4
Recycled water surcharge.........................................................................................5
1.5
WASTEWATER...................................................................................... 5
1.5.1
Proposed Wastewater Rates.....................................................................................5
2.
LEGAL FRAMEWORK AND RATE METHODOLOGY ..............7
2.1
LEGAL FRAMEWORK............................................................................ 7
2.1.1
California Constitution - Article XIII D, Section 6 (Proposition 218) ......................7
2.1.2
California Constitution - Article X, Section 2...........................................................7
2.2
COST -BASED RATE -SETTING METHODOLOGY ................................ 8
3.
WATER ENTERPRISE FINANCIAL PLAN...............................10
3.1
FINANCIAL PLAN ASSUMPTIONS.....................................................
10
3.1.1
Number of Accounts................................................................................................10
3.1.2
Account and Water Use Growth Assumptions......................................................10
3.1.3
Water Use..................................................................................................................10
3.1.4
Inflationary and Water Purchase Cost Assumptions............................................11
3.1.5
Water System Expenses..........................................................................................11
3.1.6
O&M Expenses.........................................................................................................12
3.1.7
Capital Improvement Plan(CIP)..............................................................................12
3.1.8
Debt Service..............................................................................................................12
3.1.9
Reserve Balances.....................................................................................................12
91
3.1.10
Revenue Adjustments..............................................................................................13
3.2
PROPOSED FINANCIAL PLAN...........................................................
13
4.
WATER COST OF SERVICE ANALYSIS.................................15
4.1
REVENUE REQUIREMENT DETERMINATION ...................................
15
4.2
ALLOCATION OF EXPENSES TO FUNCTIONS .................................
16
4.3
ALLOCATION OF EXPENSES TO COST COMPONENTS ..................
18
4.4
UNITS OF SERVICE.............................................................................
20
4.4.1
Customer and Meter Equivalents............................................................................20
4.4.2
Water Usage and Peaking........................................................................................21
4.4.3
Cost Distributions to the Cost components..........................................................23
5.
RATE DERIVATION..................................................................
25
5.1
EXISTING RATE STRUCTURE AND RATES ......................................
25
5.2
RECYCLED WATER RATES................................................................
25
5.3
PROPOSED MONTHLY SERVICE CHARGE .......................................
25
5.3.1
Monthly Service charge Components....................................................................25
5.3.2
Water Supply Component........................................................................................26
5.3.3
Meter Component.....................................................................................................26
5.3.4
Customer Component..............................................................................................26
5.3.5
Total Monthly Service Charge for All meters.........................................................26
5.4
PROPOSED PRIVATE FIRE CHARGES ..............................................
27
5.5
VOLUMETRIC RATES..........................................................................
29
6.5.1
Customer Classes....................................................................................................29
5.5.2
Tier Definitions.........................................................................................................29
5.5.3
Volumetric Rate Derivation......................................................................................29
5.5.4
Cost Component Definitions...................................................................................29
6.5.5
Derivation of the Unit Cost by Cost Component...................................................30
5.5.6
Delivery Cost............................................................................................................30
5.5.7
Peaking Rate.............................................................................................................30
5.5.8
Non -Rate Revenue Offset........................................................................................31
5.5.1
Recycled Water Surcharge Revenue Offset...........................................................31
'A
5.5.2
Final Rate Derivation................................................................................................32
5.5.3
5-Year Rates..............................................................................................................32
6.
WATER BILL IMPACTS............................................................34
6.1
MONTHLY SINGLE FAMILY BILL IMPACTS ......................................
34
7.
WASTEWATER FINANCIAL PLAN..........................................35
7.1
FINANCIAL PLAN ASSUMPTIONS.....................................................
35
7.1.1
Current Wastewater Rates.......................................................................................35
7.1.2
Number of Accounts and Water Use......................................................................35
7.1.3
Wastewater O&M Expenses....................................................................................36
7.1.4
Projected Capital Improvement Program...............................................................36
7.1.5
Reserve Requirements.............................................................................................36
7.2
PROPOSED FINANCIAL PLAN...........................................................
37
8.
WASTEWATER ENTERPRISE COST OF SERVICE AND RATE
DERIVATION........................................................................................
39
8.1
WASTEWATER COST OF SERVICE ANALYSIS ................................
39
8.1.1
Wastewater Revenue Requirement.........................................................................39
8.1.2
Cost Allocation to Functions...................................................................................39
8.1.3
Allocation to Cost Components..............................................................................41
8.1.4
Units of Service........................................................................................................42
8.1.5
Cost Distributions....................................................................................................43
8.1.6
Wastewater Rate Calculation...... ...................... ................................................ -...44
8.1.7
Five Year Proposed Wastewater Service Rates.....................................................45
8.1.8
Single Family Residential Wastewater Bill Impacts..............................................45
9.
RATE COMPARISON...............................................................46
93
List of Tables
Table 1-1: Recommended Yearly Revenue Adjustments...............................................................................
2
Table 1-2: Current and Proposed Monthly Fixed Service Charge................................................................
3
Table 1-3: Proposed Commodity Rates ($ / Ccf) for All Classes..................................................................
4
Table 1-4: Recycled Water Surcharges............................................................................................................
5
Table 1-5: Current and Proposed Five -Year Wastewater Rates....................................................................
5
Table 2-1: Projected Accounts by Meter Size (FY 2019).............................................................................10
Table 2-2: Water Use in Ccf by Customer Class - FY 2019..........................................................................11
Table 2-3: Inflationary Assumptions..............................................................................................................11
Table2-4: Projected O&M Expenses..............................................................................................................12
Table 2-5: Capital Improvement Plan.............................................................................................................
12
Table 2-6: Fund Balance Forecast..................................................................................................................13
Table 2-7: Proposed Rate Adjustments.........................................................................................................
13
Table 2-8: Five -Year Water Operating Cash Flow.........................................................................................14
Table 4-1: Revenue Requirement Determination..........................................................................................
16
Table 4-2: Functionalization of Operating Expenses...................................................................................
17
Table4-3: Functionalization of Capital Expenses........................................................................................17
Table 4-4: System -Wide Peaking Factors and Allocation to Cost Components.......................................18
Table 4-5: Allocation of O&M Expenses to Cost Causation Components .................................................
19
Table 4-6: Allocation of Capital Expenses to Cost Causation Components .............................................
19
Table 4-7: Customer and Equivalent Meter Units.........................................................................................
20
Table4-8: Fireline 6" Equivalents...................................................................................................................
21
Table4-9: Units of Service..............................................................................................................................
22
Table4-10: Fire Flow Calculation...................................................................................................................
22
Table4-11: Unit Costs......................................................................................................................................
24
Table 4-12: Class Cost of Service...................................................................................................................
24
Table 5-1: Existing Monthly Rate Structure and Rates................................................................................
25
Table 5-2: Monthly Meter and Customer Charge Derivation.......................................................................
26
Table 5-3: Monthly Service Charge Derivation by Meter Size.....................................................................
27
Table 5-4: Five Year Fixed Service Charges..................................................................................................
27
Table 5-5: Private Fire Charge Calculation....................................................................................................
28
Table 5-6: Private Fire Charge Derivation by Meter Size.............................................................................
28
Table 5-7: FY 2020 — 2025 Fireline Monthly Charges...................................................................................
28
Table 5-8: Proposed Single Family Residential Tiers..................................................................................
29
Table5-9: Supply Cost Derivation..................................................................................................................
30
Table 5-10: Derivation of the Delivery Unit Cost...........................................................................................
30
Table 5-11: Derivation of Peaking Rate..........................................................................................................
31
Table 5-12: Derivation Non -Rate Revenue Offset Unit Rates......................................................................
31
Table 5-13: Derivation of Recycled Surcharge Revenue Offset Unit Rates ...............................................
32
Table 5-14: Derivation of Rates by Tier and Class........................................................................................
32
Table5-15: Five -Year Volumetric Rates.........................................................................................................
33
Table 6-1: Single Family Monthly Bill Impacts..............................................................................................
34
Table 7-1: Current Wastewater Service Charges..........................................................................................
35
Table 7-2: Wastewater Accounts and Wastewater Use in Hundred Cubic Feet ........................................
36
Table 7-3: Projected Wastewater O&M Expenses.........................................................................................
36
Table 7-4: Wastewater Capital Improvement Projects.................................................................................
36
Table 7-5: Wastewater Fund Balance Forecast.............................................................................................
37
Table7-6: Proposed Wastewater Revenue Adjustments.............................................................................
37
Table 7-7: Wastewater Enterprise Proposed Financial Plan Pro -Forma ....................................................
38
Table 8-1: Allocating FY 2018 O&M Costs to Cost Causation Components .............................................
39
Table 8-2: Allocating FY 2021 O&M Costs to Functions..............................................................................
40
Table 8-3: Allocating FY 2021 Capital Costs to Functions..........................................................................
41
Table 8-4: Allocation of Functionalized O&M to Cost Components...........................................................
41
Table 8-5: Allocation of Functionalized Capital Costs to Cost Components ............................................
42
Table 8-6: City of Los Angeles Charges........................................................................................................
42
Table 8-7: Wastewater Units of Service.........................................................................................................
42
Table8-8: Wastewater Strength......................................................................................................................
43
Table8-9: Unit Cost Calculation.....................................................................................................................
43
Table 8-10: Customer Class Allocations........................................................................................................
44
Table 8-11: Wastewater Rate Calculation......................................................................................................
44
Table 8-12: Proposed Five -Year Wastewater Service and Usage Charges ...............................................
45
Table 8-13: Proposed Residential Wastewater Bills.....................................................................................
45
Table9-1: Water Bill Comparison...................................................................................................................
46
Table 9-2: Wastewater Bill Comparison.........................................................................................................
47
Table9-3: Combined Bill Comparison...........................................................................................................
47
95
This page intentionally left blank to facilitate two-sided printing.
i. Executive Summary
m Background
In the summer of 2019, the City of El Segundo (City) engaged Raftelis to conduct a Water, Recycled
Water and Wastewater Rate Study (Study) which included a Financial Plan, Cost of Service Study and
rate calculations. This report presents the Financial Plan and the resulting rates for implementation in
April of 2021.
This Executive Summary summarizes the water, recycled water, and wastewater rates and contains a
description of the methodology, results, and recommendations. The City's last rate adjustment, which
consisted of an inflationary increase in water rates, was effective on July 1, 2019. The City wishes to
establish fair and equitable rates that:
Meet the City's fiscal needs in terms of operational expenses, reserve goals, and capital
investment to maintain the system
Are fair and equitable and therefore proportionately allocate the costs of providing service in
accordance with California Constitution Article XIII D, section 6 (commonly referred to as
Proposition 218)
Result in stable charges over time for customers
1.2 Methodology
The water rates presented in this report are developed using cost of service principles set forth by the
American Water Works Association M1 Manual titled Principles of Water Rates, Fees and Charges (AWWA
M1 Manual). Cost of service principles endeavor to distribute costs to customer classes in accordance
with the way each class uses the water system. This methodology is described in detail in Sections 4 and
5. The Base -Extra Capacity Method of the AWWA M1 Manual was used to distribute costs to customer
classes and tiers. This method separates costs into four main' components: (1) base costs, (2) extra
capacity costs, (3) customer costs, and (4) fire protection costs. Base costs are costs associated with
meeting average daily demand needs and include operations and maintenance costs and capital costs
designed to meet average load conditions. Extra capacity costs are costs (both operating and capital costs)
associated with meeting peak demand. Customer costs are associated with servicing customers, such as
meter reading, billing, and customer service, etc. Fire protection costs are related solely to the fire
protection function of a water system, such as fire hydrants and related mains and valves.
Wastewater rates are derived in accordance with the Water Environment Federations Manual of Practice
No. 27, Financing and Charges for Wastewater Systems. The City has two wastewater systems; wastewater
from the east side of Pacific Coast Highway (PCH) is served by LA County Sanitation District;
wastewater treatment costs are billed directly to those customers on their annual property tax bills.
Wastewater from the west side of PCH is treated by the City of Los Angeles (Hyperion), which bills the
City of El Segundo on a quarterly basis. Therefore, rates and charges must be different for these groups of
customers.
' There can be other cost components such as conservation and supply; however, the four mentioned are
almost always used in rate studies.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
97
1.3 Results and Recommendations
Table 1-1 shows the revenue adjustments for the water and wastewater as part of the selected Financial
Plan. The revenue adjustment is the additional amount of gross rate revenue collected for each enterprise
compared to the amount collected by current rates'.
Table 1-1: Recommended Yearly Revenue Adjustments
FY 2021 FY 20221 12025
MonthEffective
Water Revenue Adjustment 0.0% 3.0% 3.0% 3.0% 3.0%
Wastewater Rate Adjustment 9.0% 9.0% 9.5% 9.5% 9.5%
1.3.1 FACTORS AFFECTING REVENUE ADJUSTMENTS
The following items affect the City's revenue requirement (i.e., costs) and thus its rates for each
enterprise. The City's expenses include Operation and Maintenance (O&M) expenses, capital expenses,
debt service (for water and wastewater), and reserve funding.
» 0&M Expenses: The City's O&M expenses (excluding water costs) increase each year, in line
with general cost inflation. Wastewater treatment costs from the City of Los Angeles are expected
to increase 91 % from FY 2019 to FY 2021.
» Capital Investment: The City plans to invest millions in each system and each enterprise as
discussed in the capital improvement section. Water and wastewater system improvements total
$16.5 million and $3.4 million, respectively, over the next five years.
» Reserve Balances: While the water utility is in a strong financial position, the wastewater utility
currently has less than the recommended reserve target and will sustain steep deficits in the coming
years if no adjustments are made.
The City will purposely make use of fund balances, as shown herein, to minimize customer rate impacts.
Using fund balances to fund operating and capital costs lowers the amount of required rate revenue and
therefore lowers the impact to customer bills.
1.4 Water
1.4.1 PROPOSED WATER RATES
In this report, the terms fee and charge are often used interchangeably. The City currently charges a set
of volumetric rates for residential customers and a set of rates for nonresidential customers. Raftelis
recommends adding a distinct Chevron' rate and adjusting the residential rate structure in accordance
with updated costs of service. The City's water rate structure includes two components: (1) a fixed
monthly service charge, and (2) a variable usage charge. Each of these charges is described below.
' Chevron is large purchaser of potable water from El Segundo, accounting for approximately 50% of water
sales with its own district usage patterns.
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
WP
1.4.2 FIXED SERVICE CHARGE
The City's proposed Fixed Service Charge includes four components. The first component is the Meter
Service Charge and it is based on the meter size serving a property. The Fixed Service Charge is
calculated to recover the cost to maintain and replace meters as well as a portion of extra -capacity related
costs (i.e., costs associated with meeting system capacity beyond that required for average daily demand).
This cost is proportional to the size of the meter and goes up with meter size according to standards set
forth by the AWWA. The second component is the customer service cost. This component recovers
costs associated with meter reading, answering customer calls, and billing customers. These costs are not
related to the size of the meter. The service charge also includes a portion of water supply costs and
public fire protection costs. The full derivation of the total Fixed Service Charge is described in Section
5, and the total Fixed Service Charge is shown in Table 1-2.
Table 1-2: Current and Proposed Monthly Fixed Service Charge
5/8" and 3/4"
$ 11.95
$ 18.18
$ 18.73
$ 19.30
$ 19.88
$ 20.48
1"
27.10
24.71
25.46
26.23
27.02
27.84
11/2"
33.94
41.05
42.29
43.56
44.87
46.22
2"
62.90
60.65
62.47
64.35
66.29
68.28
3"
141.61
122.74
126.43
130.23
134.14
138.17
4"
251.25
214.23
220.66
227.28
234.10
241.13
6"
469.74
433.16
446.16
459.55
473.34
487.55
8"
823.49
923.29
950.99
979.52
1,008.91
1,039.18
10"
1,288.35
1,380.75
1,422.18
1,464.85
1,508.80
1, 554.07
1.4.3 POTABLE COMMODITY RATE
Error! Reference source not found. shows the current and proposed commodity rates by customer class
respectively. The rates are designed to recover the costs associated with serving each class and tier as
discussed in Sections 4 and 5. The City's current rate structure consists of two customer groups; 1) Single
Family Residential customers and 2) non-residential customers. The proposed rate structure adds a third
rate for Chevron, which is a large user with its own distinct usage patterns. The revised customer groups
reflect customer behaviors, patterns, and use of the water system based on updated water usage data.
Changes to the volumetric rate structure also include redefining the volumes included in each tier. For
residential customers, Raftelis proposes including only the first 9 Ccf of usage in the first tier and an
additional 4 Ccf in the second tier. The third and final tier will include all usage above 13 Ccf. Non-
residential customers and Chevron will have a uniform volumetric rate.
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 3
Table 1-3: Proposed Commodity Rates ($ / Ccf) for All Classes
Residential
Tier 1 $ 2.82 $ 2.88 $ 2.97 $ 3.06 $ 3.16 $ 3.26
Tier 2 5.19 5.47 5.64 5.81 5.99 6.17
Tier 3 5.90 6.86 7.07 7.29 7.51 7.74
Non -Residential $ 3.43 $ 4.17 $ 4.30 $ 4.43 $ 4.57 $ 4.71
Chevron $ 3.43 $ 4.90 $ 5.05 $ 5.21 $ 5.37 $ 5.54
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL FLAN STUDY REPORT 4
100
1.4.4 RECYCLED WATER SURCHARGE
Customers who receive recycled water currently pay two charges: a direct pass -through rate of the cost
for the City to purchase recycled water from West Basin Municipal Water District and a surcharge paid
to the City. Raftelis proposes eliminating the surcharge for regular retail customers. The surcharge for
recycled water used by Chevron will remain in place and increase at the same pace as the required
revenue adjustments each year, per the existing contract between Chevron and the City.
Table 1-4: Recycled Water Surcharges
ecycled current Hprii 1 jan i jan i jan i ,an
urcharge 2020 2021 2022 2023 2024 2025
0•
1.5 Wastewater
1.5.1 PROPOSED WASTEWATER RATES
The City's current wastewater rates include a monthly Sewer Service Charge, Treatment Charge for
customers on the west side and a volumetric Charge. The volumetric rate is based on actual water use.
After discussion with City staff, Raftelis proposes several significant adjustments to the rate structure.
Single family residential customers will be billed a flat rate each month based on 9 Ccf of usage. Other
classes will have the same 9 Ccf minimum bill with an additional volumetric charge for usage above 9.
The volume rate, and minimum bill, will depend on whether the customer is a west side or east side
resident. Table 1-5 shows the current and proposed five-year wastewater rates. More detail on current
wastewater rates can be found in Section 6.
Table 1-5: Current and Proposed Five -Year Wastewater Rates
SFR
$ 23.23
$ 39.07 $
42.60 $
46.65 $
51.09 $
55.95
MFR
38.04
39.07
42.60
46.65
51.09
55.95
Institutional West
21.98
39.07
42.60
46.65
51.09
55.95
Commercial West
26.88
58.23
63.47
69.50
76.11
83.35
Industrial West
22.87
65.22
71.10
77.86
85.26
93.36
Non -Res East
7.26
14.86
16.21
17.75
19.44
21.29
ADU
16.02
17.47
19.13
20.95
22.95
7olumetric (per Ccf)
Current
A.
above 9
2020
2021
2022
2023
2024
SFR
$ 0.73
N/A
MFR
0.91
4.01
4.37
4.79
5.25
5.75
Institutional West
0.91
4.01
4.37
4.79
5.25
5.75
Commercial West
1.04
6.13
6.69
7.33
8.03
8.80
Industrial West
1.04
6.91
7.54
8.26
9.05
9.91
Non -Res East
1.04
1.32
1.44
1.58
1.74
1.91
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 5
101
The main body of this report contains the City's detailed five-year financial plan, rate derivation, and
customer bill impacts for the water and wastewater utilities.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
102
2. Legal Framework and
Rate Methodology
2J. Legal Framework
This section of the report describes the legal framework surrounding rate setting and calculating cost of
service rates that provide a fair and equitable cost allocation to customer classes.
2.1.1 CALIFORNIA CONSTITUTION - ARTICLE XIII D, SECTION 6
(PROPOSITION 218)
Proposition 218 was enacted in 1996. It amended the California Constitution by adding Article XIII C
and XIII D. Article XIII D, section 6 established procedural requirements for the imposition of property -
related fees and charges and substantive provisions governing the amount that may be imposed and the
use of such fees charged by local agencies. The substantive requirements for such fees and charges are as
follows:
A property -related charge (such as water and sewer service fees and charges) imposed by a public
agency on a parcel shall not exceed the costs required to provide the property -related service.
Revenues derived by the charge shall not be used for any other purpose other than that for which
the charge was imposed.
3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of
service attributable to the parcel.
4. No charge may be imposed for a service unless that service is actually used or immediately
available to the owner of the property.
5. No fee or charge may be imposed for general governmental services including, but not limited to,
police, fire, ambulance or library services, where the service is available to the public at large in
substantially the same manner as it is to property owners.
Raftelis follows industry -standard rate setting methodologies set forth by the AWWA MI Manual, WEF
Manual No. 27, and the restrictions and requirements in Proposition 218 to ensure this study creates rates
that do not exceed the cost of providing water service and are proportionate to the cost of providing water
service.
2.1.2 CALIFORNIA CONSTITUTION - ARTICLE X, SECTION 2
Article X, Section 2 of the California Constitution (established in 1976) states the following:
"It is hereby declared that because of the conditions prevailing in this State the general welfare
requires that the water resources of the State be put to beneficial use to the fullest extent of which
they are capable, and that the waste or unreasonable use or unreasonable method of use of water
be prevented, and that the conservation of such waters is to be exercised with a view to the
reasonable and beneficial use thereof in the interest of the people and for the public welfare."
As stated above Article X, section 2 of the State Constitution institutes the need to preserve the State's
water supplies and to discourage the wasteful or unreasonable use of water by encouraging conservation.
As such, public agencies are constitutionally mandated to maximize the beneficial use of water, prevent
waste, and encourage conservation.
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
103
In addition, Section 106 of the Water Code declares that the highest priority use of water is for domestic
purposes, with irrigation secondary. To meet the objectives of Article X, section 2, Water Code Section
375 et seq., a water purveyor may utilize its water rate design to incentivize the efficient use of water as
long is the rates also comply with other articles of the Constitution. The proposed tiered rates were
designed in compliance with California Constitution Article XIII D, section 6 by allocating a
proportionately greater share of the cost of providing service to those whose apply greater demands and
burdens on a water system and the City's water resources, and therefore generates additional costs for the
City. The tiered rates also have the incidental effect of encouraging conservation by sending a price signal
to customers to use less water.
Inclining block rate structures (which are synonymous with tiered rates), when properly designed and
differentiated by type of use, allow a water utility to send conservation price incentives to customers.
Due to heightened interest in water conservation, tiered rates have gained widespread use, especially in
relatively water -scarce regions, such as Southern California.
2.2 Cost -Based Rate -Setting Methodology
The AWWA M1 Manual states "the costs of water rates and charges should be recovered from classes of
customers in proportion to the cost of serving those customers." To develop utility rates that comply with
Proposition 218 and industry standards, while meeting other emerging goals and objectives of the utility,
there are four major steps discussed below.
1.) Calculate Revenue Requirement
The rate -making process starts by determining the test year revenue requirement - which for this study is
FY 2020. The revenue requirement is the amount a utility needs to sufficiently fund the utility's O&M,
debt service, and capital expenses, and reserve funding.
2.) Cost of Service Analysis (COS)
The annual cost of providing water service is distributed among customer classes commensurate with
their service requirements. A COS analysis involves the following:
1. Functionalizing costs. This process takes each cost item in the City's budget and organizes the
items collectively based on what function is served. Examples of cost functions are supply,
treatment, transmission, distribution, storage, meter servicing and customer billing and
collection.
2. Allocating functionalized costs to cost components. This process allocates the functionalized
costs to cost components. Cost components include base, maximum day, maximum hour',
meter service, customer service and conservation costs.
3. Distributing the cost components. The cost of service analyses distribute the cost components,
using unit costs, to customer classes in proportion to their demands on the water and wastewater
systems. These processes are described in the M1 Manual published by AWWA and Manual
No. 27 published by WEF. Wastewater costs
' Collectively maximum day and maximum hour costs are known as peaking costs or capacity costs.
CITY OF EL SEGUNDO / INATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
104
A COS analysis considers both the average quantity of water consumed (base costs) and the peak rate at
which it is consumed (peaking or capacity costs as identified by maximum day and maximum hour
demands).5 Peaking costs are costs that are incurred during peak times of consumption. There are
additional costs associated with designing, constructing, and operating and maintaining facilities to meet
peak demands. These peak demand costs need to be allocated to those customers and customer classes
whose water usage results in the City incurring the associated costs. In other words, not all customer
classes share the same responsibility for peaking related costs.
3.) Rate Design and Calculations
Rates do more than simply recover costs. Within the legal framework and industry standards, properly
designed rates should support and optimize a blend of various utility objectives, such as conservation,
affordability for essential needs, and revenue stability, among other objectives. Rates may also act as a
public information tool in communicating these objectives to customers.
4.) Rate Adoption
Rate adoption is the last step of the rate -making process to comply with Proposition 218. Raftelis
documented the rate study results in this Study Report to help educate the public about the proposed
changes, the rationale and justifications behind the changes, and their anticipated financial impacts in lay
terms.
5 System capacity is the system's ability to supply water to all delivery points at the time when demanded.
Coincident peaking factors are calculated for each customer class at the time of greatest system demand. The
time of greatest demand is known as peak demand. Both the operating costs and capital asset related costs
incurred to accommodate the peak flows are generally allocated to each customer class based upon the class's
contribution to the peak month, day and hour event.
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
105
3. Water Enterprise
Financial Plan
This section describes the water enterprise rate study, starting with the water financial plan, followed by
the cost of service study, rate design and customer bill impacts.
3.1 Financial Plan Assumptions
3.1.1 NUMBER OF ACCOUNTS
Raftelis created a five-year financial plan which models anticipated revenue and expenses. This report
shows the financial plan and assumptions for the next five years (FY 2021 to FY 2025) to correspond
with the rate development for these years. Estimated rate revenue (without adjustments) is calculated by
multiplying the number of accounts by the monthly Fixed Service Charge and multiplying the total water
use in each tier by the commodity rate. Table 3-1 shows the actual number of water accounts, including
private fire protection accounts by meter size and class for FY 2019. This year is shown because this is
the basis for the forecast. The number of accounts are used to forecast the amount of fixed revenue the
City will receive from Fixed Service Charges.
Table 3-1: Projected Accounts by Meter Size (FY 2019)
5/8" and 3/4"
2,602
550
3,153
i"
386
473
863
11/2"
6
353
-
369
2"
4
346
11
398
3"
-
83
12
98
411
-
42
96
143
611
-
29
115
150
811
-
1
146
147
10"
-
1
38
39
Total
2,998
1,878
418
5,360
3.1.2 ACCOUNT AND WATER USE GROWTH ASSUMPTIONS
The revenue calculated for each fiscal year in the Financial Plan is a function of the number of accounts,
account growth, water use trends, and existing rates. Based on discussions with City staff, the Financial
Plan assumes a conservative 0% growth in customer accounts and per capita water usage.
3.1.3 WATER USE
Table 3-2 shows the estimated FY 2020 number of accounts and water use by customer class. The
number of accounts and water use are based on FY 2019 account and water use data and the assumption
of no growth. The number of accounts in Table 3-2 does not include Fire Protection accounts.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 10
106
Table 3-2: Water Use in Ccf by Customer Class - FY 2019
SFR
2,998
361,251
60.7%
5.0%
Non -Residential
1,878
1,184,820
38.0%
16.3%
Chevron
1,559,501
21.4%
Recycled
66
4,174,777
1.3%
57.3%
Total
4,942
7,280,349
100.0%
100.0%
3.1.4 INFLATIONARY AND WATER PURCHASE COST ASSUMPTIONS
To ensure future O&M costs are reasonably projected, Raftelis made informed assumptions about
inflationary factors, water costs, and water use. Table 3-3 shows the inflationary categories used to
escalate the City's FY 2020 operations and maintenance (O&M) expense budget, which is part of the
Financial Plan. The inflationary factors in Table 3-3 reflect long-term averages for general and capital
(construction) inflation and energy prices.
Table 3-3: Inflationary Assumptions
1
Salaries
3.0%
3.0%
3.0%
3.0%
3.0%
2
Benefits
8.0%
8.0%
8.0%
8.0%
8.0%
3
Supplies
3.0%
3.0%
3.0%
3.0%
3.0%
4
Electricity
5.0%
5.0%
5.0%
5.0%
5.0%
5
Fuel
3.0%
3.0%
3.0%
3.0%
3.0%
6
Contractual
3.0%
3.0%
3.0%
3.0%
3.0%
7
Purchased Water- Potable
6.0%
6.0%
6.0%
6.0%
6.0%
8
Purchased Water- Reclaimed
6.0%
6.0%
6.0%
6.0%
6.0%
9
Equipment
3.0%
3.0%
3.0%
3.0%
3.0%
10
General
3.0%
3.0%
3.0%
3.0%
3.0%
11
Sewage Treatment
6.0%
6.0%
6.0%
6.0%
6.0%
12
Capital Projects
3.1%
3.1%
3.1%
3.1%
3.1%
Raftelis used the assumptions shown in Table 3-31 through Table 2-3 to develop the City's Water
Financial Plan. The plan uses projected annual operating expenses and revenues, capital expenditures,
reserve fund balances, and annual debt service coverage ratios to estimate the amount of additional rate
revenue needed each year. The following sub -sections provide a discussion of O&M expenses, the
Capital Improvement Plan (CIP), reserve funding, projected revenue under existing rates, and the
revenue adjustments needed to ensure the fiscal sustainability and solvency of the Water Enterprise.
3.1.5 WATER SYSTEM EXPENSES
The City's expenses include O&M expenses, capital expenses, and debt service payments, each of which
is described below.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
11
107
3.1.6 O&M EXPENSES
Table 3-4 shows the City's O&M budget by fiscal year. The O&M budget incorporates the inflationary
factors in Table 3-3, using the FY 2020 budget as the base year. Approximately 84% of the O&M budget
is water purchase costs, which are not directly controllable by the City.
Table 34: Projected O&M Expenses
1 Salaries
$ 1,160,791
$ 1,195,615
$ 1,231,483
$ 1,268,428
$ 1,306,480
$ 1,345,675
2 Benefits
649,147
701,079
757,165
817,738
883,157
953,810
3 Supplies
248,800
256,264
263,952
271,870
280,027
288,427
4 Utilities
31,800
33,366
35,010
36,735
38,545
40,445
5 Potable Water
10,573,713
11,166,623
11,836,620
12,546,818
13,299,627
14,097,604
6 Recycled Water
13,227,296
13,574,090
14,388,535
15,251,848
16,166,958
17,136,976
7 Service Charges
2,445,867
2,519,243
2,594,820
2,672,665
2,752,945
2,835,430
8 Total: Water Operating Expenses $ 28,337,414 $ 29,446,280 $ 31,107,586 $ 32,866,101 $ 34,727,639 $ 36,698,368
3.1.7 CAPITAL IMPROVEMENT PLAN (CIP)
Table 3-5 summarizes the City's five-year CIP. The City is funding capital investment through rate
revenue and reserve funds (also known as PAY -GO funding) rather than issuing debt.
Table 3-5: Capital Improvement Plan
1 Water Main Improvement on Grand Ave. $1,500,000 - - - - -
2 Water Infrastructure Replacement - 2,300,000 3,000,000 3,000,000 3,000,000 3,000,000
3.1.8 DEBT SERVICE
The City does not currently have any outstanding utility debt and the Financial Plan does not propose
issuing any bonds in the study period.
3.1.9 RESERVE BALANCES
Raftelis recommends adopting an updated formal financial reserve policy. The City should maintain the
following in reserves:
1. Operating Reserve equal to four months of O&M expenses
2. Capital Reserve equal to the average annual forecasted capital spending of the next 10 years
3. Rate Stabilization Reserve equal to 25% of annual potable and surcharge revenue
The water utility currently has sufficient cash to fully fund each of these reserves. Table 2-6 shows a
forecast of the balance for each fund through the study period.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
12
Table 3-6: Fund Balance Forecast
Operating Reserve
$20,443,420
$ 21,453,127
$ 22,151,119
$ 22,453,466
$22,323,325
Target
9, 680, 969
10, 227,152
10, 805, 293
11, 417, 306
12, 065, 217
Capital Reserve
$ 3,528,930
$ 3,690,666
$ 3,803,884
$ 3,915,540
$ 4,022,497
Target
3,488,001
3,670,173
3,783,582
3,900,494
4,021,020
Rate Stabilization Reserve $ 4,479,869 $ 4,614,265 $ 4,752,693 $ 4,895,274 $ 5,042,132
Target 4,479,869 4,614,265 4,752,693 4,895,274 5, 042,132
Total Reserves $28,452,219 $ 29,758,058 $ 30,707,696 $ 31,264,280 $31,387,954
Target 17, 648, 839 18, 511, 590 19, 341, 568 20, 213, 075 21,128, 369
3.1.10 REVENUE ADJUSTMENTS
Using the assumed number of accounts and water use described above, Raftelis developed a financial
plan using projected operating and capital expenses, revenues, and resulting yearly cash balances for the
financial plan study period - from FY 2021 to FY 2025. The financial plan is used to determine the
overall revenue adjustments required to ensure water enterprise financial stability. Revenue adjustments
represent the average increase in rates as a whole; rate changes for individual classes will depend on the
cost of service — since a cost of service analysis allocates costs to each customer class. Therefore, the
revenue adjustment may not be the same as the average bill impact for each customer class. This study
establishes rates for FY 2021 through FY 2025.
The proposed revenue adjustments help ensure adequate revenue to fund operating expenses, capital
expenditures, and compliance with any bond covenants. Financial Plan modelling assumes revenue
adjustments will occur in January of each year. The proposed revenue adjustments would enable the City
to cover operating expenses and execute the CIP shown in Table 3-5.
Table 3-7 shows the proposed revenue adjustments selected by the City. The rates presented in Section 5
are based on these revenue adjustments.
Table 3-7: Proposed Rate Adjustments
Water Revenue Adjustment 0.0'0 3.0% 3.0% 3.0% 3.0%
3.2 Proposed Financial Plan
Table 3-8 shows the City's cash flow projection over the study period assuming the revenue adjustments
shown in Table 3-7. Line 1 shows retail rate revenue, including the fixed monthly capacity charge and
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
13
volume charge. Line 2 shows the revenue from the surcharge applied to recycled water by the City. Line
3 shows the additional revenue from the revenue adjustments. Revenue on line 4 shows the charges from
West Basin the City passes through and collects from recycled customers; this revenue equals the expense
on line 6 of Table 2-4.
Line 11 shows the yearly ending cash flow after subtracting operating and capital expenses from total
revenue (in line 6). Non -Rate revenue includes meter installations, interest income, and other
miscellaneous items. Balances for each of the reserve funds are tracked in lines 12 to 14.
Table 3-8: Five -Year Water Operating Cash Flow
Revenues
1
Fixed Monthly and Volurr
$ 16,456,948
$16,456,948
$ 16,456,948
$
16,456,948
$ 16,456,948
$16,456,948
2
Recycled Surcharge Revei
4,168,194
4,161,513
4,161,513
4,161,513
4,161,513
4,161,513
3
Additional Revenue from
-
-
463,915
1,096,387
1,747,832
2,418,821
4
Recycled Pass -through
13,227,296
13,574,090
14,388,535
15,251,848
16,166,958
17,136,976
5
Non -Rate Revenue
171,360
141,985
130,777
135,826
139,316
140,827
6
Total: Revenue
$ 34,023,798
$34,334,536
$ 35,601,689
$
37,102,521
$ 38,672,567
$40,315,085
7
Revenue Adjustment
0.000/0
3.00•%
3.0W/o
3.00%
3.0W/o
Expenses
8
O&M
$ 28,337,414
$29,446,280
$ 31,107,586
$
32,866,101
$ 34,727,639
$36,698,368
9
Capital
4,750,000
2,650,000
3,350,000
3,400,000
3,500,000
3,600,000
10
Total: Expenses
$ 33,087,414
$32,096,280
$ 34,457,586
$
36,266,101
$ 38,227,639
$40,298,368
11
Op. Surplus/(Deficit)
$ 936,384
$ 2,238,257
$ 1,144,103
$
836,420
$ 444,928
$ 16,717
12
Op. Reserve
22,685,032
20,443,420
21,453,127
22,151,119
22,453,466
22,323,325
13
RS. Reserve
4,479,869
4,614,265
4,752,693
4,895,274
5,042,132
14
Cap. Reserve
3,250,000
3,528,930
3,690,666
3,803,884
3,915,540
4,022,497
15
Total Reserve
$ 25,935,032
$28,452,229
$ 29,758,058
$
30,707,696
$ 31,264,280
$31,387,954
16
Target Balance
17,027,569
17,648,839
18,511,590
19,341,568
20,213,075
21,128,369
17
CIP (Uninflated)
1,500,000
2,300,000
3,000,000
3,000,000
3,000,000
3,000,000
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 14
110
4. Water Cost of Service
Analysis
A Cost of Service analysis distributes a utility's revenue requirement (yearly revenues needed from rates)
to each customer class. This is done by allocating the City's revenue requirement to the cost causation
components. The cost causation components include:
1. Base (average) costs'
2. Peaking costs (maximum day and maximum hour)
3. Meter service
4. Billing and customer service
5. Fire protection
6. General and administrative costs
Additional cost components can include pumping zone costs and supply costs. Peaking costs are further
divided into maximum day and maximum hour demand. The maximum day demand is the maximum
amount of water used in a single day in a year. The maximum hour demand is the maximum hour usage
on the maximum usage day. Both maximum day and maximum hour peaking demand is used to
calculate peaking unit rates to distribute costs to customer classes. Peaking costs are allocated in
proportion to how the different customer classes use water during peak day and hour demands. Different
facilities, such as distribution and storage facilities are designed to meet the peaking demands of
customers. Therefore, extra capacity' costs include the O&M and capital costs associated with meeting
peak customer demand. This method is consistent with the AWWA M1 Manual and is widely used in
the water industry to perform cost of service analyses.
4.1 Revenue Requirement Determination
Table 4-1 shows the test year revenue requirement derivation. The total revenue required from water
rates is shown on line 9. The total in line 5, column B, is the O&M revenue requirement that is allocated
to cost components in the following steps. The capital revenue requirement in line 5, column C, is
allocated to the cost components using a similar methodology. The total on line 5, column D, is the total
amount of revenue required by the financial plan in Table 2-7, row 6 in FY 2020.
To arrive at the rate revenue requirement in line 9, column D, other non -rate revenues on lines 6 and 7
are subtracted from the total revenue requirements. This is the total amount the City's Fixed Service
Charges and Commodity Charges are designed to collect in the test year.
A major source of offsetting revenue is the surcharge Chevron pays to the City on all recycled water it
uses. The impact of this surcharge on retail rates will be discussed in more detail in Section 5.4.1.
' The base component can be further divided into supply and base/delivery cost components as discussed in
Section 4.
7 The terms extra capacity, peaking and capacity costs are used interchangeably.
CITY OF EL SEGUNDO / WATER AND WASTEWATER RATE STUDY REPORT 15
111
Table 4-1: Revenue Requirement Determination
(A)
(B)
(C)
(D)
1 Operations and Maintenance
$
28,337,414
$
28,337,414
2 Debt Service
-
-
3 PAYGO
4,750,000
4,750,000
4 Contribution to Operating Reserve
936,384
936,384
5 Subtotal: Revenue Requirements
$
28,337,414 $
5,686,384
$
34,023,798
Less: Adjustments_
6 Misc. Revenue
$
171,360 $
$
171,360
7 Chevron Recycled Water Surcharge
4,168,194
4,168,194
8 Subtotal: Adjustments
$
4,339,554 $
$
4,339,554
9 Total: Net Revenue Required $ 23,997,860 $ 5,686,384 $ 29,684,244
4.2 Allocation of Expenses to Functions
The first step of the Cost of Service analysis is to analyze operating costs and determine the functions
they serve. Each budgeted line item is assigned to a function. For example, 33% of salary costs, on line 1,
is estimated to be associated with maintaining the City's transmission system. Raftelis determined these
allocations in consultation with City staff. Table 4-2 shows the functionalization results. The total
amount in row 39, column B, is the Operating revenue requirement shown in Table 4-1, line 5.
A similar analysis is conducted to functionalize capital costs, shown in Table 4-3. The City's current
assets are assigned to functions. For example, Raftelis estimated that 66% of the City's water pipes are
used for water transmission. The resulting allocations are used to functionalize cash basis capital
expenses proportionately. The complete analysis shows that 48% of the City's assets are used for
transmission, therefore 48% of the test year cash basis capital costs are assigned to that function. The total
Capital Budget on row 11, column B, matches that shown in Table 4-1, line 5, column C.
CITY OF EL SEGUNDO / WATER AND WASTEWATER RATE STUDY REPORT 16
112
Table 4-2: Functionalization of Operating Expenses
O&IM Line Item
Amount
Supply Supply I ,
,
(A)
(B)
(C) (D) (E)
(F)
(G)
(H)
(1)
0
1 7102-4101 Salaries Full -Time
$ 928,191
33%
33%
15%
9%
10%
2 7102-4102 Salaries Part Time
184,600
33%
33%
15%
9%
10%
3 7102-4103 Overtime
20,000
33%
33%
15%
9%
10%
4 7102-4116 Standby Pay
22,000
33%
33%
15%
9%
10%
5 7102-4201 Retirement CalPERS
247,071
33%
33%
15%
9%
10%
6 7102-4202 FICA
83,879
33%
33%
15%
9%
10%
7 7102-4203 Workers' Compensation
80,025
33%
33%
15%
9%
10%
8 7102-4204 Group Insurance
208,538
33%
33%
15%
9%
10%
9 7102-4209 PARS Expense
10,000
33%
33%
15%
9%
10%
10 7102-4210 OPEB Expense
17,634
33%
33%
15%
9%
10%
11 7102-4215 Uniform Replacement
2,000
33%
33%
15%
9%
10%
12 7102-5204 Operating Supplies
42,800
33%
33%
15%
9%
10%
13 7102-5207 Small Tools & Equipment
192,000
33%
33%
15%
9%
10%
14 7102-5215 Vehicle Gasoline Charge
14,000
33%
33%
15%
9%
10%
15 7102-6101 Gas Utility
1,200
33%
33%
15%
9%
10%
16 7102-6102 Electricity Utility
30,600
100%
17 7102-6201 Advertising/Publishing
8,000
100%
18 7102-6205 Other Printing & Binding
2,500
100%
19 7102-6206 Contractual Services
284,795
100%
20 7102-6207 Equipment Replacement Charge
34,187
100%
21 7102-6208 Dues&Subscriptions
14,560
100%
22 7102-6211 Insurance & Bonds
1,146,300
100%
23 7102-6212 Laundry & Cleaning
10,000
100%
24 7102-6213 Meetings &Travel
1,600
100%
25 7102-6214 Professional & Technical
68,440
100%
26 7102-6215 Repairs & Maintenance
43,000
100%
27 7102-6217 Software Maintenance
4,000
100%
28 7102-6219 Network Operating Charge
10,300
100%
29 7102-6223 Training & Education
7,500
100%
30 7102-6224 Vehicle Operating Charge
10,000
100%
31 7102-6253 Postage
32,000
100%
32 7102-6254 Telephone
32,000
100%
33 7102-6256 Pavement Rehabilitation
18,000
100%
34 7102-6260 Equipment Leasing Costs
4,600
100%
35 7102-6283 Water Purchases- Potable
10,573,713
100%
36 7102-6285 Water Purchases -Reclaimed Water
13,227,296
100%
37 7102-6286 General Admin Charges
714,085
100%
38 7102-6354 Lifeline Expense
6,000
100%
39 Total: O&M
$ 28,337,414
$10,573,713 $13,227,296 $ 677,800 $
677,800
$ 308,091
$184,854
$ 245,394
$2,442,467
Table 4-3: Functionalization of Capital Expenses
(A)
(B)
(C)
(D)
(E)
(F)
(G)
1 Water Pipes
$ 90,000,000
66%
34%
2 Water Meters
2,500,000
100%
3 6.3 MG Reservoir
15,000,000
100%
4 3 MG Reservoir
10,000,000
100%
5 .2 MG Elevated Tank
3,000,000
100%
6 Booster Pump Station
2,500,000
100%
7 Total: Assets
$123,000,000
$ 2,500,000
$ 59,400,000
$30,600,000
$28,000,000
$2,500,000
8 %Allocation
2.03%
48.29%
24.88%
22.76%
2.03%
Capital Item
9 Rate Funded Capital
4,750,000
96,545
2,293,902
1,181,707
1,081,301
96,545
10 Contribution to/(Use of) Reserves
936,384
19,032
452,205
232,954
213,161
19,032
11 Total: Capital Budget
$ 5,686,384
$ 115,577
$ 2,746,108
$ 1,414,661
$ 1,294,461
$ 115,577
CITY OF EL SEGUNDO
/ 'WATER
AND WASTEIN.ATER
RATE STUDY REPORT
17
113
4.3 Allocation of Expenses to Cost Components
In a Cost of Service analysis, the City's expenses are allocated to the cost causation components. To do
so it is necessary to identify system -wide peaking factors which are shown in column B, Table 4-4. The
system -wide peaking factors are used to derive the cost component allocation bases (i.e., percentages)
shown in columns C through E of Table 4-4. These peaking factors are based on a review of system data
in similar oceanfront communities in California. Functionalized expenses are then allocated to the cost
components using the allocation bases shown in column A. To understand the interpretation of the
percentages shown in columns B through E we must first establish the base use as the average daily
demand during the year — which is assigned an allocation basis of 1. If the base allocation basis is used to
allocate an expense, it means that the costs associated with that expense are to meet average daily
demand (base) related costs.
Expenses that are allocated to the cost causation components using the maximum day basis are those
attributed to ensuring the water system is able to accommodate the maximum expected daily demand.
The Max Day allocation attributes 63% (1.00/1.58) of the demand (and therefore costs) to base use
(average daily demand) and the remaining 37% to maximum day use (peaking). Maximum hour costs
are costs associated with meeting the highest of peaks within a day — typically these costs are associated
with the distribution system. Expenses allocated using the maximum hour bases assume 39% (1.00/2.57)
of costs are due to base demands, 23% due to max day ((1.58-1)/2.67) and 39% (1-0.39-0.23) are due to
max hour costs. Collectively the maximum day and maximum hour cost components are known as peaking
costs. These allocation bases are used to assign City 0&M functions, shown in column A of Table 4-5
(which were determined on row 39 of Table 4-2), to the cost causation components also shown across the
top of Table 4-5.
Table 4-4: System -Wide Peaking Factors and Allocation to Cost Components
(A)
(B)
(C) (D) (E)
Base
1.00
100%
Max Day
1.58
63% 37% 0%
Max Hour
2.57
39% 23% 39%
The allocation bases are chosen based on the type of cost for each line item and the proportion of those
costs associated with each cost causation component (max day, max hour, general, etc.). For example,
distribution, line 4, is allocated using the max hour basis since distribution costs are associated with
serving both average day demands and peak day demands in proportion to max hour allocations
identified in Table 4-4. The distribution system must be sized, constructed, operated, and maintained to
meet max hour demands. Certain cost bases are identical to the cost causation components — such as
water supply — and therefore are easily allocated to the system cost causation component with the same
name. Lines 9 and 10 show the resulting allocation of all expenses to the cost causation components.
General overhead costs are proportionally reallocated to all other cost causation components, except for
water supply costs.
The expenses in column B of Tables 4-5 and 4-6 correspond to the total expenses in Tables 4-2 and 4-3.
CITY OF EL SEGUNDO / WATER AND WASTEWATER RATE STUDY REPORT 18
114
(A)
1 Potable Supply
2 Reclaimed Supply
3 Transmission
4 Distribution
5 Storage
6 Meters
7 Customers
8 General
9 Total: O&M
10 Reallocation of O&M:
11 Allocation %
(A)
1 Pumping
2 Transmission
3 Distribution
4 Storage
5 Meters
6 Total: Capital Costs
7 Allocation %
U1
Table 4-5: Allocation of O&M Expenses to Cost Causation Components
(B)
$ 10,573,713
13, 227, 296
677, 800
677,800
308,091
184,854
245,394
(C) (D)
100.0%
100.0%
(E)
(F) (G)
63.3%
36.7%
38.9%
22.6% 38.5%
63.3%
36.7%
(1) (j) (K)
100.0%
100.0%
2,442,467 100.0%
$ 28, 337, 414 $ 10, 573, 713 $13, 227, 296 $ 887,716 $ 514,876 $ 261,098 $ 184,854 $ 245,394 $ 2,442,467
$ 10, 573, 713 $ 13,227,296 $ 1,923,190 $1,115,450 $ 565,655 $ 400,477 $ 531,633
37.31% 46.68% 6.79% 3.94% 2.00% 1.41% 1.88%
Table 4-6: Allocation of Capital Expenses to Cost Causation Components
(B)
115,577
2,746,108
1,414, 661
1,294,461
115,577
$ 5,686,384 $
(D) (E) (F) (G) (1) (J) (K)
38.9% 22.6% 38.5%
63.3% 36.7%
38.9% 22.6% 38.5%
63.3% 36.7%
100.0%
$ - $ 3,223,351 $1, 802, 509 $ 544,947 $ 115,577 $ - $
0.00% 0.00% 56.69% 31.70% 9.58% 2.03% 0.00%
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 19
4.4 Units of Service
Once all expenses have been allocated to the appropriate cost components, the next step is to determine
the units of service over which the costs will be recovered. The standard units are number of customers,
5/8" meter- equivalents (the base meter), annual water use, and extra capacity units. Private fire
connections and city hydrants are also used in the calculation of private fire charges.
4.4.1 CUSTOMER AND METER EQUIVALENTS
Table 4-7 summarizes customer and meter units. Accounts in columns D and E can be found in Table 2-
1. Equivalent meter units account for the potential flow through larger meters and equate this flow to the
total flow through the base meter — in this case - the 5/8-inch meter. Equivalent meters for each class are
derived by multiplying the AWWA ratio in column C by the number of accounts at a given meter size.
For example, 386 residential 1" accounts are equivalent to 1.7 * 386 = 643 5/8" meters. The same step is
repeated for each meter size and for all residential and non-residential accounts.
Table 4-7: Customer and Equivalent Meter Units
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
5/8" and 3/4"
30
1.0
2,602
550
2,602
550
3,152
1"
50
1.7
386
473
643
788
1,432
11/2"
100
3.3
6
353
20
1,177
1,197
2"
160
5.3
4
346
21
1,845
1,867
3"
350
11.7
83
-
968
968
4"
630
21.0
42
882
882
6"
1300
43.3
29
1,257
1,257
8"
2800
93.3
-
1
-
93
93
10"
4200
140.0
-
1
-
140
140
Total
2,998
1,878
3,287
7,701
10,987
Equivalent fire accounts are treated similarly, using the Hazen Williams equation for pipe flow,'
demonstrated in Table 4-8. The ratios calculated in column B are applied to the number of private fire
connections to determine the number of 6" hydrant equivalents. The percentages derived at the bottom of
Table 4-8 are used in Table 4-10 to calculate the cost of providing fire protection service.
8 The potential flow is the diameter of the outlet/connection raised to the 2.63 power — the Hazen Williams
equation for pipe flow. For a 2" outlet the 6" equivalent demand factor would be (2/6)^2.63 = .056.
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 20
116
Table 4-8: Fireline 6" Equivalents
(A)
(B)
(C)
(D)
(E)
5/8" and 3/4"
0.004
-
1"
0.009
-
-
-
11/2"
0.026
-
-
2"
0.056
11
1
-
3"
0.162
12
2
-
4"
0.344
96
33
-
6"
1.000
115
115
608
8"
2.131
146
311
-
10"
3.832
38
146
-
Total
418
607
608
49.97%
50.03%
4.4.2 WATER USAGE AND PEAKING
Other relevant units include annual water usage and peaking units. Table 4-9 shows the calculation of
extra capacity units for each class. The single-family residential tier definitions in columns B and C are
discussed in detail in Section 5.3.
Annual usage in column D is the total amount of water each class is forecasted to use in the test year,
which is also shown in Table 2-2. Average day in column E is column D divided by 365. The maximum
day peaking factor in column F is based on a detailed analysis of billing data. It represents the
relationship between a forecasted average month and the single highest month of usage (maximum
month) for a given class. The peaking factor in column F is multiplied by the average day use in Column
E to determine the maximum total capacity in column G. Column H is the difference of column E and
column G; these extra capacity units are used to distribute peaking costs between the classes. The
maximum hour peaking ratios are estimated by multiplying the maximum hour peak by the ratio of the
system max hour to max day (2.57/1.58=1.63) from Table 4-4. The same steps are applied to calculate
maximum hour total units, subtracting units in column G from those in column J to determine maximum
hour extra capacity units.
Extra capacity units for public and private fire connections are also included in rows 7 and 8 of Table 4-9.
Detail for these units can be found in Table 4-10. City staff estimates that reasonable concurrent
maximum fire flow is approximately 3,500 gallons for 3 hours, shown in lines 1 and 2. This is equivalent
to 842 Ccf maximum day demand (3.5 thousand gallons per minute * 3 hours * 60 minutes, converted to
Ccf) and 5,895 Ccf maximum hour demand (3.5 thousand gallons per minute * 24 hours * 60 minutes —
maximum day demand, converted to Ccf). These demands are then allocated between public and private
fire protection. The percentages on line 3 of Table 4-10, are the result of the fire equivalencies from Table
4-8. These are applied to the capacity calculated on row 4 to determine the units on rows 5 and 6.
Columns L and M of Table 4-9 contain a summary of the customer units determined in Tables 4-7 and 4-
8.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 21
117
00
Table 4-9: Units of Service
(A) (B)
(C)
(0)
(E)
(F)
(G)
(H)
(1)
(j)
(K)
(1-)
(M)
1 Single Family Residential
361,251
2,998
3,287
2 Tier 1 1-9
66.62%
240,677
659
1.07
707
48
1.74
1,150
443
3 Tier 2 10-13
15.00%
54,186
148
1.37
203
54
2.22
330
127
4 Tier >13
18.385vo
66,387
182
1.69
307
125
2.74
499
192
5 Non -Residential
1,184,820
3,246
1.30
4,217
971
2.11
6,860
2,642
1,878
7,701
6 Chevron
1,559,501
4,273
1.33
5,682
1,410
2.16
9,243
3,561
7 Private Fire Service
-
421
421
2,946
2,946
418
607
8 Public Fire Service
421
421
2,949
2,949
608
9 Total
3,105,572
8,508
11,959
3,451
23,978
12,861
5,294
12,203
Table 4-10: Fire Flow Calculation
(A)
(B)
(C)
1 Hours for Fire
3.0
2 Kgals/minute
3.5
3.5
3 Cost to Public Fire
50.03%
50.03%
4 Required Capacity (Ccf)
842
5,895
5 Public Fire
421
2,949
6 Private Fire
421
2,946
7 Total Fire
842
5,895
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 22
4.4.3 COST DISTRIBUTIONS TO THE COST COMPONENTS
Table 4-11 summarizes the results of the cost allocation to the cost components and units of service
determination in Tables 4-5, 4-6, and 4-9. The total cost to be recovered on row 5, column B can also be
found in Table 4-1 row 9, column D.
The unit costs on row 7 are the result of dividing the cost on row 5 for each cost component by the units
of service on row 6.
Table 4-12 presents the results of the cost of service process. Using the unit costs calculated in Table 4-11
and the detailed units of service in Table 4-9, the costs are distributed to each customer class. For
example, the base unit cost is multiplied by the base units for the SFR Tier 1 class ($1.66 dollars per Ccf
240,677 Ccf = $398,849) in row 2, column E. The same step is applied for each class and each cost
component. The total cost of service by class, shown in Column B, is the total amount of revenue to be
collected from each class and is the basis for the rate design in Section 5.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 23
119
N
O
(A)
1 Operating Expenses
2 Capital Expenses
3 Revenue Offsets
4 Surcharge Offset
5 Total: Costs
Table 4-11: Unit Costs
(B) (C) (D) (E) (F) (G) (1) 0) (L)
$ 28,337,414 $ 10,573,713 $13,227,296 $ 1,923,190 $1,115,450 $ 565,655 $ 400,477 $ 531,633
5,686,384 - - 3,223,351 1,802,509 544,947 115,577 -
(171,360) (171,360)
(4,168,194) (4,168,194)
$ 29,684,244 $ 10,573,713 $13,227,296 $ 5,146,541 $ 2,917,959 $ 1,110,602 $ 516,054 $ 531,633 $ (4,339,554)
6 Units of Service 3,105,572
4,174,260
3,105,572
3,451
12,861
10,987
5,294
Potable Ccf
Rec. Ccf
Potable Ccf
Ccf/pay
Ccf/Hour
Eq. Meters
Accounts
7 Unit Cost $ 3.40
$ 3.17
$ 1.66
$ 845.65
$ 86.35
$ 46.97
$ 100.42
Table 4-12: Class Cost of Service
(A) (B)
(C) (D)
(E)
(F)
(G) (1) 0)
1 Single Family Residential $ 2,542,232
$ 154,368 $ 301,064
2 Tier 1
819,447
398,849
40,494
38,270
3 Tier 2
184,492
89,798
46,086
10,982
4 Tier
226,033
110,017
105,727
16,606
(L)
5 Non -Residential
7,597,157
4,034,022 1,963,479 821,194
228,184 361,686 188,592
6 Chevron
91393,847
5,309,720 2,584,399 1,192,259
307,470 - -
7 Private Fire Service
652,298
- - 355,911
254,411 41,976
8 Public Fire Service
610,968
356,288
254,680 -
9 Recycled
13, 227, 296
13, 227, 296
10 Total $ 29, 684, 244 $ 10, 573, 713 $13, 227, 296 $ 5,146, 541 $ 2, 917, 959 $ 1,110, 602 $ 516,054 $ 531,633 $ (4, 339, 554)
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPOR f 24
5. Rate Derivation
5.1 Existing Rate Structure and Rates
The City's existing rate structure consists of a fixed monthly charge' by meter size and a set of volumetric
rates depending on customer type and amount of usage. The City has a four -tier volumetric rate structure
with different unit rates depending on customer class. Table 5-1 shows the existing rate structure and
rates. Raftelis recommends adjusting the number and size of the single-family residential tiers, creating a
uniform rate for non-residential customers, and creating a separate uniform rate for Chevron.
Table 5-1: Existing Monthly Rate Structure and Rates
Monthly Capacity Charges
5/8" & 3/4"
$ 11.95
1"
27.10
11/2"
33.94
2"
62.90
3"
141.61
4"
251.25
6"
469.74
8"
823.49
10"
1,288.35
12"
1,855.05
16"
3,293.96
20"
5,144.59
Volumetric Charges per Ccf
Single Family Residential
Tier 1 0-10
$ 2.82
Tier II 10-20
5.19
Tier 111 20-50
5.90
Tier IV 50+
5.19
Non -Residential
Tier 1
0-10
$ 3.43
Tier II
10-20
4.19
Tier III
20-50
4.44
Tier IV
50+
4.66
5.2 Recycled Water Rates
In addition to directly passing through the cost to purchase recycled water from West Basin, the City
currently imposes a surcharge on all recycled water used by its customers. The surcharge is $0.31 per Ccf
for regular retail customers and $1.0075 per Ccf for Chevron.
Raftelis recommends eliminating the surcharge on regular retail customers. Given that the City is only
responsible for maintaining the meter and providing customer service, each recycled customer should pay
the same meter charge as potable customers, derived in section 5.3. The pass through supply costs should
remain unchanged.
The surcharge paid by Chevron in set by contract with the City. In accordance with the contract, that rate
should increase by the same percentage as potable rates in the future.
5.3 Proposed Monthly Service Charge
5.3.1 MONTHLY SERVICE CHARGE COMPONENTS
The proposed monthly service charge has four components, which are discussed below. Table 5-2 shows
the derivation of these components for 5/8-inch meters. The units for lines 1 to 3, in column C, are
' Although rates are calculated and charged on a monthly basis, the City sends bills to residential customers
bimonthly.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 25
121
equivalent meters; units for line 4 are customer accounts, including private fire service accounts. The
annual unit costs are the result of dividing the total cost by the number of units.
Table 5-2: Monthly Meter and Customer Charge Derivation
(A)
(B)
(C)
(D)
(E)
1 Water Supply Cost
$ 165,444
10,987
$ 15.06 $
1.25
2 Meter Cost
516,054
10,987
46.97
3.91
3 Public Fire Cost
610,968
10,987
55.61
4.63
4 Customer Service
531,633
5,294
100.42
8.37
5 Total
$ 1,824,098
$ 218.05 $
18.17
5.3.2 WATER SUPPLY COMPONENT
Although most the City's water supply costs are variable, approximately $165,000 of the annual total is
billed to the City on a fixed basis. The City has decided to recover this portion of supply costs on the
fixed service charge.
5.3.3 METER COMPONENT
The meter service component recovers two types of costs: 1) costs associated with maintaining and
servicing meters (meter service component) and 2) capacity (also known as peaking) costs. Both costs
increase as the meter size increases and are proportional to the AWWA hydraulic capacity ratios shown
in column B of Table 5-3. The capacity ratios, which are a function of a meter's safe maximum flow rate,
are used to increase the meter service component for larger capacity meters. This assumes that the
potential capacity (peaking) demand is proportional to the potential flow through each meter size as
established by the AWWA hydraulic capacity ratios. The ratios shown in column B are the ratio of
potential flow through each meter size compared to the flow through a 5/8-inch meter. The 5/8-inch
meter is used as the base since it is the smallest and most numerous meter size. Larger meters have the
potential to demand more water instantaneously and generate greater peak demands. The meter service
component for a 5/8-inch meter was derived in Table 5-2. As shown in columns D, E, and G, the meter
service component, water supply component, and public fire component for larger meters are relative to
the AWWA capacity ratios shown in column B of Table 5-3.
5.3.4 CUSTOMER COMPONENT
The customer component derivation, shown in line 4 of Table 5-2, recovers costs associated with meter
reading, customer billing and collection, as well as answering customer calls. These costs are the same
for all meter sizes as it costs the same to bill a small meter as it does a larger meter.
5.3.5 TOTAL MONTHLY SERVICE CHARGE FOR ALL METERS
Table 5-3 shows the derivation of the monthly service charge by meter size in column H, which is the
addition of columns D through G. The water supply, meters, and public fire charges increase in
proportion to AWWA Capacity ratios (shown in column C), while the customer charge is the same at
each meter size (column E).
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 26
122
Table 5-3: Monthly Service Charge Derivation by Meter Size
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
1 5/8" and 3/4"
1.00
3,152 $
1.25 $
3.91 $
8.37 $
4.63
$ 18.17
2 1"
1.67
859
2.09
6.52
8.37
7.72
24.71
3 11/2"
3.33
359
4.18
13.05
8.37
15.45
41.04
4 2"
5.33
350
6.69
20.87
8.37
24.71
60.65
5 3"
11.67
83
14.64
45.66
8.37
54.06
122.73
6 4"
21.00
42
26.35
82.19
8.37
97.31
214.23
7 6"
43.33
29
54.38
169.61
8.37
200.80
433.15
8 8"
93.33
1
117.12
365.31
8.37
432.50
923.29
9 10"
140.00
1
175.67
547.96
8.37
648.74
1,380.75
Table 5-4 shows the monthly Fixed Service Charge for the next five fiscal years. They are derived by
applying the revenue adjustments shown in Table 3-7 to the service charges for FY 2020 shown in Table
5-3. Charges are rounded up to the nearest whole penny and may not match the unrounded values in
Table 5-3.
Table 5-4: Five Year Fixed Service Charges
5/8" and 3/4"
$ 11.95
$ 18.18
$ 18.73
$ 19.30
$ 19.88
$ 20.48
i"
27.10
24.71
25.46
26.23
27.02
27.84
11/2"
33.94
41.05
42.29
43.56
44.87
46.22
2"
62.90
60.65
62.47
64.35
66.29
68.28
3"
141.61
122.74
126.43
130.23
134.14
138.17
4"
251.25
214.23
220.66
227.28
234.10
241.13
6"
469.74
433.16
446.16
459.55
473.34
487.55
8"
823.49
923.29
950.99
979.52
1,008.91
1,039.18
10"
1,288.35
1,380.75
1,422.18
1,464.85
1,508.80
1,554.07
5.4 Proposed Private Fire Charges
Table 5-5 shows the derivation of the monthly private fire charge in column E. The total peaking costs for
the private fire service class, shown in Table 4-12, line 8, columns F and G, is divided by the number of
equivalent private fire meters from Table 4-8 and converted to a monthly basis. In Table 5-6, the cost for
a 6" equivalent meter is scaled using the ratios in column B and added to the customer cost derived in
Table 5-2. The proposed private fire charges are based on the potential flow through each private fire
connection and are calculated in accordance with principles set forth in the American Water Works
Association M 1 Manual, Principles of Water Rates, Fees and Charges. 10
10 Section VII of the fifth edition
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 27
123
Table 5-5: Private Fire Charge Calculation
(A) (B) (C) (D) (E)
Private Fire Cost $ 610,321 607.36 $1,004.88 $ 83.74
Table 5-6: Private Fire Charge Derivation by Meter Size
(A)
(B)
(C)
(D)
(E)
(G)
5/8" and 3/4"
0.00
-
8.37
0.35
8.72
1"
0.01
-
8.37
0.75
9.12
11/2"
0.03
-
8.37
2.19
10.55
2"
0.06
11
8.37
4.66
13.03
3"
0.16
12
8.37
13.53
21.90
4"
0.34
96
8.37
28.83
37.20
6"
1.00
115
8.37
83.74
92.11
8"
2.13
146
8.37
178.45
186.82
10"
3.83
38
8.37
320.92
329.29
Rates will increase in subsequent years by the adjustments shown in Table 3-7 in the same manner as the
meter charges and are rounded up to the next cent.
Table 5-7: FY 2020 - 2025 Fireline Monthly Charges
5/8" and 3/4"
-
$ 8.73
$ 9.00
$ 9.27
$ 9.55
$ 9.84
1"
-
9.13
9.41
9.70
10.00
10.30
11/2"
-
10.56
10.88
11.21
11.55
11.90
2"
58.80
13.03
13.43
13.84
14.26
14.69
3"
89.75
21.90
22.56
23.24
23.94
24.66
4"
120.71
37.20
38.32
39.47
40.66
41.88
6"
182.61
92.11
94.88
97.73
100.67
103.70
8"
232.89
186.83
192.44
198.22
204.17
210.30
10''
306.44
329.29
339.17
349.35
359.84
370.64
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 28
124
5.5 Volumetric Rates
5.5.1 CUSTOMER CLASSES
Raftelis recommends creating an additional customer class for Chevron in addition to the existing
residential and non-residential classes.
5.5.2 TIER DEFINITIONS
The City proposes to change the tier definitions from those shown in Column B to those shown in
column C of Table 5-8. The new tier definitions are based on a detailed analysis of the City's billing
data. The first tier provides for the residential winter average usage, the second tier includes the
residential summer average, and the third tier is for all use in excess of Tier 2. Residential customers in
the City use an average of 9 Ccf in the winter months, which is strongly correlated with indoor usage.
Average summer use is 13 Ccf. These averages are used as the breakpoints for the first two tiers.
Raftelis proposes a uniform rate for all other customers classes. Commercial customers tend to be much
less homogenous and their individual water needs vary much more than single family residential.
Table 5-8: Proposed Single Family Residential Tiers
(A)
(B)
(C)
1 Tier 1
0-10
1-9
2 Tier
11-20
10-13
3 Tier
21-50
14+
4 Tier4
51+
N/A
5.5.3 VOLUMETRIC RATE DERIVATION
The total volumetric rate is the summation of unit rates for each cost component: Supply, Delivery,
Peaking (Max day and hour), and revenue offsets. Each unit rate will be derived and added together to
get the total volumetric rate for each tier and customer class. Each cost component is defined below.
5.5.4 COST COMPONENT DEFINITIONS
The commodity rates for each class and tier are derived by summing the unit rates ($/Ccf) for:
1. Water Supply
2. Delivery
3. Peaking
4. Revenue Offsets
Water Supply costs are costs associated with purchasing treated water from West Basin Municipal Water
District.
Delivery costs are the operating and capital costs associated with delivering water to all customers
through the distribution system (pipelines and storage reservoirs) at a constant average rate of use — also
known as serving customers under average daily demand conditions. Therefore, delivery costs are spread
over all units of water which results in a uniform delivery unit cost for all classes and tiers.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 29
125
Peaking costs, or extra -capacity costs, represent costs incurred to meet customer peak demands in excess
of average daily demand. Peaking costs are the sum of columns F and G in Table 4-12 — that is maximum
day and maximum hour costs. Peaking costs are distributed to each tier and class using peaking factors
derived from customer use data — discussed later in this section.
Revenue Offsets are revenues from non -rate sources that reduce the amount of revenue required from
customers. They are reflected as negative values added to the other components of the rates.
5.5.5 DERIVATION OF THE UNIT COST BY COST COMPONENT
Supply Unit Costs
Table 5-9 shows the supply cost derivation for all customers. First, the volumetric portion of West Basin's
charges to the city is calculated. In the 2020 test year, West Basin charges $1,385 per acre foot of treated
water, or $3.18 per Ccf. This cost is multiplied by the forecasted demand with a 5% water loss factor to
provide an estimate of the total amount of water the City will buy in column C. The total cost (E) is
divided by the demand in column C to provide a unit cost per Ccf of water sold in column F.
The cost in column E and the fixed portion of supply costs in Table 5-2, row 1 equal the total potable
water supply cost in Table 4-11 column B.
Table 5-9: Supply Cost Derivation
(A) (B)
Volume Rate
1 Per Acre Foot $ 1,385
2 Per Ccf $ 3.18
5.5.6 DELIVERY COST
(C) (D) (E) (F)
5%
3,105, 572 3,269,023 $ 10, 408, 269 $ 3.35
The delivery rate in Table 5-10 is derived by dividing the total base costs from Table 4-12, column F by
the total forecasted demand. The base rate is the unit cost to supply and deliver water under average daily
demand (ADD) conditions. Table 5-10 identifies the rate to deliver water during average daily demands.
This delivery cost is the same for all classes and for all tiers.
Table 5-10: Derivation of the Delivery Unit Cost
Total:
5.5.7 PEAKING RATE
(A) (B) (C)
$ 5,146,541 3,105, 572 1.66
Table 5-11 shows the peaking rate derivation for each class. The peaking unit cost (peaking rate) per Ccf
(column D) is calculated by dividing the peaking costs (column B) by water use (column C) for each class
and tier. The peaking unit cost is correlated with the peaking factor — a higher peaking factor correlates
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 30
126
to a higher peaking rate. The total peaking costs in column B of Table 5-11 for each class matches the
sum of maximum day and maximum hour peaking costs in Table 4-12Error! Reference source not
found..
Table 5-11: Derivation of Peaking Rate
(A)
Single Family Residential
1 Tier 1
2 Tier 2
3 Tier3
4 Non -Residential
5 Chevron
Total.
(g) (C) (D)
$ 78,763 240,677 $ 0.33
57,068 54,186 1.05
122,333 66,387 1.84
1,049,379 1,184, 820 0.89
1,499, 729 1,559,501 0.96
$ 2,807,272 3,105, 572
5.5.8 NON -RATE REVENUE OFFSET
Table 5-12 shows the derivation of the non -rate revenue offset for all customers. First, the revenue
amount in column D, row 7 is allocated between all classes on the basis of water demand. This result is
shown in rows 1, 5, and 6 of column C. The SFR allocation, based on all usage, is reallocated to only
offset rates for Tier 1. While only Tier 1 receives the benefit of the revenue offset, all SFR customers pass -
through Tier 1 and therefore all customers benefit from the allocation. The unit rate offset in column E is
the result of dividing the allocation for each class in column D by the demand in column B.
The total offset amount can be found in Table 4-11, column M, row 3.
Table 5-12: Derivation Non -Rate Revenue Offset Unit Rates
(A)
(B)
(C)
(D)
(E)
1 Single Family Residential
361,251
11.6% $
(19,933)
(0.06)
2 Tier
240,677
100.0090
(19,933)
(0.08)
3 Tier 2
54,186
0.00%
4 Tier 3
66,387
0.00%
5 Non -Residential
1,184,820
38.15%
(65,376)
(0.06)
6 Chevron
1,559,501
50.22%
(86,051)
(0.06)
7 Total
3,105, 572
$
(171, 360)
5.5.1 RECYCLED WATER SURCHARGE REVENUE OFFSET
The calculation of the recycled water surcharge revenue offset unit rate is like the non -rate revenue offset
calculation in Table 5-12. Rather than proportion the total amount of the offset among all customers
evenly, the City has elected to allocate 62% of the offset to customers other than Chevron. The first tier of
SFR usage also receives a larger portion of the benefit than the second and third tiers.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 31
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Table 5-13: Derivation of Recycled Surcharge Revenue Offset Unit Rates
(A)
1 Single Family Residential
2 Tier 1
3 Tier 2
4 Tier3
5 Non -Residential
6 Subtotal
7 Chevron
8 Total
(B)
(C)
(D)
(E)
361,251
23.4%
$ (603,836)
(1.67)
240,677
94.67°0
(571, 660)
(2.38)
54,186
5.33%
(32,176)
(0.59)
66,387
0.00%
-
1,184,820
76.63%
(1,980,444)
(1.67)
1,546,071
62.0%
$ (2,584,280)
1,559,501
$ (1,583,914)
(1.02)
3,105,572
(4,168,194)
5.5.2 FINAL RATE DERIVATION
Tables 5-9 to 5-13 derive the rates for each cost component - supply, delivery, peaking, revenue offset,
and recycled surcharge offsets.
Table 5-14 shows the total volumetric rate derivation for all customers in FY 2020, which is the
summation of all rate components.
Table 5-14: Derivation of Rates by Tier and Class
(A)
(B)
(C)
(D)
(E)
(F)
(G)
Single Family Residential
1 Tier 1 $
3.35 $
1.66 $
0.33 $
(0.08) $
(2.38) $
2.88
2 Tier 2
3.35
1.66
1.05
-
(0.59)
5.47
3 Tier 3
3.35
1.66
1.84
6.85
4 Non -Residential
3.35
1.66
0.89
(0.06)
(1.67)
4.17
5 Chevron
3.35
1.66
0.96
(0.06)
(1.02)
4.90
5.5.3 5-YEAR RATES
Table 5-15 shows the proposed five-year volumetric rates by escalating the volumetric rates derived in
Table 5-14, which have been rounded to the nearest whole penny, by the proposed revenue adjustments
shown in Table 3-7. Customer bill impacts are discussed in Section 6.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 32
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Table 5-15: Five -Year Volumetric Rates
Residential
Tier 1
$
2.82
$
2.88
$
2.97
$
3.06
$
3.16
$
3.26
Tier 2
5.19
5.47
5.64
5.81
5.99
6.17
Tier 3
5.90
6.86
7.07
7.29
7.51
7.74
Non -Residential
$
3.43
$
4.17
$
4.30
$
4.43
$
4.57
$
4.71
Chevron
$
3.43
$
4.90
$
5.05
$
5.21
$
5.37
$
5.54
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 33
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6. Water Bill Impacts
6.1 Monthly Single Family Bill Impacts
Table 6-1 shows the Single Family customer bill impacts for various levels of use and meter sizes.
Column C shows the percent of bills that fall below a certain level of use during a typical month. For
example, 49.2% of total customer monthly bills are 9 Ccf or less.
Table 6-1: Single Family Monthly Bill Impacts
(A)
(B)
(C)
(D)
(E)
(F)
1 5/8"
and 3/4"
-
0.8%
11.95
18.18
6.23
2 5/8"
and 3/4"
5
22.6%
26.05
32.58
6.53
3 5/8"
and 3/4"
9
49.2%
37.33
44.10
6.77
4 5/8"
and 3/4"
10
55.6%
40.15
49.57
9.42
5 5/8"
and 3/4"
13
71.5%
55.72
65.98
10.26
6 5/8"
and 3/4"
30
97.9%
151.05
182.60
31.55
7 1"
40
99.4%
225.20
257.73
32.53
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 34
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7. Wastewater Financial
Plan
The City of El Segundo is responsible for the operation and maintenance (O&M) of an extensive
wastewater collection system but does not provide wastewater treatment. Wastewater on the east side of
the City is sent to Los Angeles County Sanitation Districts (LACSD). The county bills those customers
directly on their annual property tax bills. Wastewater from the west side is treated by the City of Los
Angeles, which bills the City of El Segundo.
Raftelis analyzed existing operating revenues, O&M, capital expenditures, and reserve requirements for
the wastewater enterprise. This section discusses projected revenues, O&M expenses, reserve funding and
revenue adjustments needed to ensure the financial sustainability of the utility.
7J Financial Plan Assumptions
7.1.1 CURRENT WASTEWATER RATES
The City currently has three sets of rates. Customers on the west side pay a monthly treatment fee based
on meter size and which varies by customer class. All customers pay a monthly service fee which also
varies by meter size and class. Table 7-1 presents the current rates in effect in FY 2020.
Table 7-1: Current Wastewater Service Charges
Treatment Fee
3/4"
$
16.63
$ 27.48
$ 19.62 $
19.62
$ 16.27
$
16.27
$ 15.38
$ 15.38
V.
21.15
38.50
48.97
48.97
21.99
21.99
24.35
24.35
1 1/2"
22.87
58.74
90.18
90.18
63.55
63.55
37.06
37.06
2"
24.29
131.73
237.73
237.73
193.99
193.99
56.19
56.19
3"
447.75
440.61
440.61
486.29
486.29
139.34
139.34
4"
616.10
1,882.76
1,882.76
690.89
690.89
165.00
165.00
6"
1,882.76
1,882.76
690.89
690.89
165.00
165.00
Service Fee
3/4"
$
6.60
$ 10.56
$ 7.26
$ 6.60
$
7.26
$ 6.60
$ 6.60
V.
7.92
14.85
18.81
7.26
7.92
18.15
9.24
9.24
1 1/2"
8.58
22.44
33.00
46.21
24.42
33.00
13.86
13.86
2"
9.24
49.50
85.81
132.00
72.60
72.60
19.81
19.81
3"
171.62
194.81
184.81
194.81
297.02
52.81
52.81
4"
231.02
693.05
297.02
264.02
462.03
66.00
66.00
6"
693.05
759.05
264.02
1,254.10
66.00
66.00
Volume Charge
$
0.73
$ 0.91
$ 1.04 $
1.04
$ 1.04
$
1.04
$ 0.91
$ 0.91
7.1.2 NUMBER OF ACCOUNTS AND WATER USE
Table 7-2 shows the number of wastewater accounts and the wastewater flow (based on water use for
wastewater customers) in Ccf for each customer class in FY 2019. As with the water utility demand
projection, the Financial Plan assumes no growth in customer accounts or increased wastewater
generation, on a per capita basis, in future years.
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 35
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Table 7-2: Wastewater Accounts and Wastewater Use in Hundred Cubic Feet
3/4"
2.605
247
161
-
115
1
16
3,145
1"
381
276
92
10
50
21
12
-
842
11/2"
6
219
31
48
21
16
5
346
2"
2
101
24
87
19
69
16
4
322
3"
3
3
28
2
7
7
1
51
4"
5
4
13
3
13
3
1
42
6"
1
10
1
15
-
27
2,994
851
316
196
211
142
59
6
4,775
Use (Ccf)
361,205
267,389
118,555
309,014
51,309
344,064
20,052
14,492
1,486,080
7.1.3 WASTEWATER O&M EXPENSES
Raftelis projects wastewater O&M expenses by applying the inflation factors in Table 3-3 to the FY 2020
O&M budget. Table 7-3 summarizes the budgeted and projected O&M expenses during the Study
period. The forecast of treatment fees for the study period is based on the projections provided by the City
of Los Angeles; treatment costs will increase significantly in 2021.
Table 7-3: Projected Wastewater O&M Expenses
Salaries
$ 581,630 $
599,079 $
617,051 $
635,563 $
654,630 $
674,269
Benefits
355,099
383,507
414,187
447,322
483,108
521,757
Supplies
97,800
100,734
103,756
106,869
110,075
113,377
Utilities
65,000
68,172
71,500
74,993
78,657
82,502
Treatment Fees
1,999,993
2,737,200
2,882,500
2,829,200
2,562,800
2,834,900
Service Charges
1,100,412
1,133,424
1,167,427
1,202,450
1,238,523
1,275,679
Total: Sewer Operating Expenses $ 4,199,934 $ 5,022,116 $ 5,256,422 $ 5,296,396 $ 5,127,793 $ 5,502,484
7.1.4 PROJECTED CAPITAL IMPROVEMENT PROGRAM
Table 7-4 summarizes the City's five-year CIP. The proposed capital improvement program will be
funded entirely through rate revenue and reserve funds, also known as PAY -GO funding, rather than
issuing debt.
Table 7-4: Wastewater Capital Improvement Projects
Lifeguard Pump Station $ 650,000 $ - $ - $ - $ - $ -
Wastewater Infrastructure Replacement - 150,000 500,000 500,000 500,000 500,000
7.1.5 RESERVE REQUIREMENTS
Raftelis recommends adopting an updated formal financial reserve policy. The City should maintain the
following in reserves:
1. Operating reserve equal to four months of O&M expenses
2. Capital reserve equal to the average annual forecasted capital spending of the next ten years
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 36
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The wastewater utility is currently achieving approximately 60% of this target and is forecasted to sustain
significant deficits in the future without revenue adjustments.
Table 7-5: Wastewater Fund Balance Forecast
Operating Reserve
$ 1,088,392 $
420,552 $
149,949 $
839,873
$ 1,803,442
Target
1,651,107
1,728,139
1,741,281
1,685,850
1,809,036
Capital Reserve
$ 45,365 $
413,988 $
816,191 $
951,467
$ 1,019,293
Target
716,883
806,240
861,161
917,779
976,146
Total Reserves
$ 1,133,757 $
834,539 $
966,140 $
1,791,340
$ 2,822,735
Target
2,367,990
2, 534, 379
2,602,442
2,603,628
2, 785,182
7.2 Proposed Financial Plan
To ensure that the Wastewater Enterprise has adequate revenues to fund operating and capital
expenditures as well as funds sufficient reserves, Raftelis and City Staff recommend the revenue
adjustments in Table 7-6. The City has not implemented a wastewater rate increase since 2016, requiring
significant adjustments. The proposed rate adjustments will allow the City to achieve its reserve targets by
2025.
Table 7-6: Proposed Wastewater Revenue Adjustments
Wastewater Rate Adjustment 9.0% 9.0% 9.5% 9.5% 9.5%
Table 7-7 shows the cash flow projection with the proposed revenue adjustments from Table 7-6. The
proposed financial plan meets the City's financial needs by meeting long term reserve goals. As indicated
by the negative net cash flow, the City plans to use fund balances to minimize customer impacts as much
as possible. Figure 2 presents the financial plan graphically.
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 37
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Table 7-7: Wastewater Enterprise Proposed Financial Plan Pro -Forma
Revenues
Rate Revenue
Additional Revenue
Non -Rate Revenue
Total: Revenue
Rate Increase
Expenses
O&M
Transfer to Capital
Total: Expenses
Op. Surplus/(Deficit)
Op. Reserve
Cap. Reserve
Total Reserve
Target Balance
CIP (Uninflated)
$3.0
c
0
=_ $2.5
$2.0
$1.5
$1.0
$0.5
$ 4,493,170 $ 4,493,170 $ 4,493,170 $ 4,493,170 $ 4,493,170 $ 4,493,170
- 303,289 734,970 1,225,S22 1,768,797 2,363,684
316,200 261,015 260,442 257,103 255, 750 259,199
$ 4,809,370 $ 5,057,474 $ 5,488,582 $ 5,975,794 $ 6,517,717 $ 7,116,053
9.000% 9.000/ 9.50% 9.50'/ 9.50'/
$ 4,199,934 $ 5,022,116 $ 5,256,422 $ 5,296,396 $ 5,127,793 $ 5,502,484
700,000 150,000 900,000 950,000 700,000 650,000
$ 4,899,934 $ 5,172,116 $ 6,156,422 $ 6,246,396 $ 5,827,793 $ 6,152, 484
$ (90,564) $ (114,642) $ (667,840) $ (270,602) $ 689,924 $ 963,569
1,203,035 1,088,392 420,552 149,949 839,873 1,803,442
50, 000 45,365 413,988 816,191 951,467 1,019,293
$ 1,253,035 $ 1,133,757 $ 834,539 $ 966,140 $ 1,791,340 $ 2,822,735
2,061,006 2, 367,990 2,534,379 2, 602,442 2, 603,628 2,785,182
650,000 150,000 500,000 500,000 500,000 500,000
2020
Figure 1: Wastewater Financial Plan
Wastewater Total Fund Balance
2021 2022
Combined Balance
2023
Target
2024 2025
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 38
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S. Wastewater Enterprise Cost
of Service and Rate Derivation
8 a Wastewater Cost of Service Analysis
This section discusses the allocation of O&M expenses and capital costs to the wastewater cost components, which
is simplified for the City since it operates as a wastewater collection agency and does not operate a wastewater
treatment plant. The City collects sewage which is sent to either the City of Los Angeles or LACSD. The County
bills customers directly on the property tax bill. The City of Los Angeles bills the City of El Segundo, which must
collect this cost from its customers. Therefore, the City's cost components consist of Flow, Customer, General, and
Treatment (West Side Only) components. The study uses a FY 2021 test year to more accurately allocate the
increased treatment costs.
Raftelis recommends adopting a fixed monthly charge for single family residential users based on 9 Ccf of usage,
the average indoor usage determined in Section 4.4. All other users will pay an equivalent minimum charge each
month, in addition to a volumetric charge that varies based upon whether the customer's service is on the east or
west side of the City.
8.1.1 WASTEWATER REVENUE REQUIREMENT
Table 8-1 presents the summarized test year revenue requirements shown in column D, line 8. The values
displayed here align with the FY 2021 costs presented in Table 7-6.
Table 8-1: Allocating FY 2018 O&M Costs to Cost Causation Components
OperatingRevenue Requirements (A) (B) (C) (D)
1 Operations and Maintenance $5,022,116 $ 5,022,116
2 PAYGO 150,000 150,000
3 Contribution to Operating Reserve (114,642) (114,642)
4 Subtotal: Revenue Requirements
Adjustments
5 Misc. Revenue
6 Mid Year Increase
7 Subtotal: Adjustments
8 Total: Net Revenue Required
$5,022,116 $ 35,358 $ 5,057,474
$ 261,015 $ 261,015
(101,096) (101,096)
$ 261,015 $ (101,096) $ 159,919
$4,761,101 $ 136,454 $ 4,897,555
8.1.2 COST ALLOCATION TO FUNCTIONS
Table 8-2 shows the allocation of the City's FY 2021 O&M budget to the functions they serve: treatment,
collection, billing, and general overhead. The total allocation to each cost component is shown on the final line of
CITY OF EL SEGUNDO 1 WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 39
135
the table. Table 8-3 presents the allocation of wastewater assets to functions, which is used to allocate cash basis
capital costs to the same components.
Table 8-2: Allocating FY 2021 O&M Costs to Functions
(A)
(B)
(C) (D)
(E)
(F)
1
4301-4101 Salaries Full Time
$ 545,025
80.00%
10.00%
10.00%
2
4301-4102 Salaries Part Time
12,954
80.00%
10.00%
10.00%
3
4301-4103 Overtime
20,600
80.00%
10.00%
10.00%
4
4301-4116 Standby Pay
20,600
80.00%
10.00%
10.00%
5
4301-4117 Opt - Out Payments
-
80.00%
10.00%
10.00%
6
4301-4201 Retirement CalPERS
145,800
80.00%
10.00%
10.00%
7
4301-4202 FICA
43,763
80.00%
10.00%
10.00%
8
4301-4203 Workers' Compensation
54,017
80.00%
10.00%
10.00%
9
4301-4204 Group Insurance
120,538
80.00%
10.00%
10.00%
10
4301-4209 PARS Expense
8,532
80.00%
10.00%
10.00%
11
4301-4210 OPEB Expense
10,857
80.00%
10.00%
10.00%
12
4301-5203 Repair& Maintenance Supplies
51,500
100.00%
13
4301-5204 Operating Supplies
38,934
100.00%
14
4301-5207 Small Tools & Equipment
1,030
100.00%
15
4301-5215 Vechile Gasoline Charge
9,270
100.00%
16
4301-6101 Gas Utility
1,030
100.00%
17
4301-6102 Electric Utility
64,155
95.00%
5.00%
18
4301-6103 Water Utility
2,987
100.00%
22
4301-6206 Contractual Services
2,737,200
100.00%
23
4301-6207 Equipment Replacement Charge
82,644
100.00%
24
4301-6208 Dues & Subscriptions
1,030
100.00%
25
4301-6211 Insurance & Bonds
317,343
100.00%
26
4301-6212 Laundry & Cleaning
6,180
100.00%
28
4301-6214 Professional &Technical
20,600
100.00%
29
4301-6215 Repairs & Maintenance
236,900
100.00%
30
4301-6217 Software Maintenance
3,090
100.00%
31
4301-6219 Network Operating Charge
3,502
100.00%
32
4301-6223 Training & Education
2,884
100.00%
33
4301-6224 Vehicle Operating Charge
16,480
100.00%
35
4301-6253 Postage
20,600
100.00%
36
4301-6254 Telephone
12,360
100.00%
37
4301-6286 General Admin Charges
409,811
100.00%
38
Misc. Revenue
(261,015)
100.00%
39 Total: O&M
$4,761,101
$ 2,737,200 $ 1,267,294 $
118,859 $
637,748
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT
40
136
Table 8-3: Allocating FY 2021 Capital Costs to Functions
(A) (B) (C) (D) (E) (F)
1 Wastewater Pipes $120,000,000 100.00%
2 Wastewater Pump Stations $ 30,000,000 100.00%
3 Total: Assets $150,000,000 $ - $150,000,000 $ $ -
4 %Allocation 0.00% 100.00% 0.00% 0.00%
Capital Costs
5 Transfer to Capital Fund 150,000 0.00% 100.00% 0.00% 0.00%
6 Contribution to Reserves (114,642) 0.00% 100.00% 0.00% 0.00%
7 Mid Year Adjustment 101,096 0.00% 100.00% 0.00% 0.00%
8 Total: Capital Costs $ 136,454 $ • $ 136,454 $ - $
8.1.3 ALLOCATION TO COST COMPONENTS
Tables 8-4 and 8-5 show the allocation of functionalized O&M and capital costs to the appropriate cost
components. Billing costs are recovered on an equal basis from each customer, while collection costs are allocated
based on volume. General costs are allocated proportionally between volume and bills.
Treatment costs are only allocated to customers on the west side whose wastewater is treated by the City of Los
Angeles. Costs are allocated between volume, Biochemical Oxygen Demand (BOD), and Total Suspended Solids
(TSS) based on a detailed analysis of the City's 2020 revenue requirement from Los Angeles, presented in Table 8-
6. These charges are based on the strength, distance, and total volume of wastewater sent by El Segundo for
treatment. Row 1 of Table 8-6 presents the rates charged by the City of Los Angeles. The charges on row 4 are
derived by applying the rates to the units on row 3. Distance costs are reallocated to other cost components, and
the resulting allocation percentages on row 6 are used in Table 8-4 to allocate treatment costs to the cost
components.
Table 8-4: Allocation of Functionalized O&M to Cost Components
(A)
(B)
(C)
(D) (E) (F) (G)
1 Treatment
$ 2,737,200
35.19% 36.53% 28.29%
2 Collection
1,267,294
100.00%
3 Billing
118,859
100.00%
4 General
637,748
583,063
54,685
5 Total: O&M
$ 4,761,101 $
1,850,357 $
173,544 $ 963,168 $ 999,774 $ 774,258
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 41
137
Table 8-5: Allocation of Functionalized Capital Costs to Cost Components
(A) (B) (C) (D) (E) (F) (G)
1 Treatment $
2 Collection 136,454 100.00%
3 Billing
4 General - - -
5 Total: Capital $ 136,454 $ 136,454 $ - $ . $ - $
Table 8-6: City of Los Angeles Charges
(A)
(B)
(C)
(D)
(E) (F)
1 Rates
$21,954.00
$ 1,347.66 $
377.15 $
272.49
2 Daily Units
1.399
5.189
5.562
3 Annual Units
0.406
511
1,894
2,030
4 Charge
$ 8,913
$ 688,162 $
714,316 $
553,190 $1,964,582
5 % All ocation
0.45%
35.03%
36.36%
28.16%
6 Reallocation
35.19%
36.53%
28.29%
8.1.4 UNITS OF SERVICE
Table 8-7 summarizes the wastewater units of service. Volume in column B is derived by assuming each customer
contributes at least 9 Ccf per month to the wastewater system and accounting for all usage above 9 Ccf by larger
customers. The total also includes assumed ADU usage at 4 Ccf per month for 90 units. Bills in column C equal
the number of accounts for each class, multiplied by the number of bills received each year. Pounds of BOD and
TSS are derived in Table 8-8.
Table 8-7: Wastewater Units of Service
(A)
(B)
(C)
1 SFR
327,672
35,928
2 MFR
275,241
10,212
3 Commercial (West)
145,076
3,792
4 Commercial (East)
314,521
2,352
5 Industrial (West)
62,907
2,532
6 Industrial (East)
346,898
1,704
7 Institutional (West)
23,922
708
8 Institutional (East)
14,625
72
9 Total:
1,510,862
57,300
(D) (E) (F)
327,672 489,286 564,561
275,241 410,995 474,225
145,076 549,907 549,907
62,907 289,027 289,027
23,922 35,721 41,216
834,818 1,774,936 1,918,937
Raftelis conducted a mass balance to estimate the wastewater strengths and loadings of each customer class. Plant
totals on line 8 are known based on the bill provided by the City of Los Angeles. If 10% of this total is due to
inflow and infiltration (I&I) it suggests that retail customers contribute 614,000 Ccf of wastewater. This implies
that approximately 26% of billed wastewater in column D of Table 8-7 did not return to the plant. This amount is
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 42
138
subtracted from the volumes in Table 8-7 to provide the volumes in Table 8-8, column B. Raftelis used industry
standard wastewater strengths (mg/1) for each class in columns D and F. The loadings in pounds in columns E and
G are the results of applying the strength concentrations to the volumes of wastewater treated.
Table 8-8: Wastewater Strength
(A)
(B)
(C)
(D)
(E)
(F)
(G)
1 SFR
327,672
241,157
180.4
325
489,286
375
564,561
2 M F R
275,241
202,569
151.5
325
410,995
375
474,225
3 Commercial (West)
145,076
106,771
79.9
825
549,907
825
549,907
4 Industrial (West)
62,907
46,298
34.6
1,000
289,027
1,000
289,027
5 Institutional (West)
23,922
17,606
13.2
325
35,721
375
41,216
6 Subtotal:
834,818
614,400
459.6
2,800
1,774,936
2,950
1,918,937
7 1&1
68,267
51.1
280
119,049
261
111,193
8 Plant Total
682,667
510.6
445
1,893,985
477
2,030,130
9 Return Factor
-26.40%
8.1.5 COST DISTRIBUTIONS
Table 8-9 shows a summary of the costs calculated in Tables 8-4 and 8-5 as well as the total units in Table 8-7. The
unit costs on row 5 are calculated by dividing the cost on row 3 by the units of service on row 4. These unit costs
are used in Table 8-10 to distribute costs to each class by multiplying them by each class's units of service from
Table 8-7. For example, the SFR allocation of volume costs of $403,895 is the result of multiplying 1.32 by
327,672.
Table 8-9: Unit Cost Calculation
(A) (B) (C) (D) (E) (F)
1 O&M $ 1,850,357 $ 173,544 $ 963,168 $ 999,774 $ 774,258
2 Capital 136,454 - - -
3 Total: Cost $ 1,986,811 $ 173,544 $ 963,168 $ 999,774 $ 774,258
4 Units of Service 1,510,862 57,300 834,818 1,774,936 1,918,937
5 Unit Cost $ 1.32 $ 3.03 $ 1.15 $ 0.56 $ 0.40
CITY OF EL SEGUNDO / WATER AND WASTEWATER FINANCIAL FLAN STUDY REPORT 43
139
Table 8-10: Customer Class Allocations
(A)
(B)
1 SFR $
1,421,152 $
430,895 $
2 MFR
1,133,278
361,947
3 Commercial (West)
901,269
190,778
4 Commercial (East)
420,724
413,601
5 Industrial (West)
442,390
82,724
6 Industrial (East)
461,338
456,177
7 Institutional (West)
97,953
31,458
8 Institutional (East)
19,450
19,232
9 Total: $ 4,897,555 $ 1,986,811 $
(C)
(D)
(E)
(F)
108,815 $
378,050 $
275,602 $
227,790
30,929
317,558
231,502
191,342
11,485
167,381
309,748
221,878
7,123
7,669
72,579
162,801
116,618
5,161
2,144
27,600
20,121
16,630
218
173,544 $ 963,168 $ 999,774 $ 774,258
8.1.6 WASTEWATER RATE CALCULATION
Table 8-11 presents the derivation of the proposed wastewater rates. The treatment cost in column C is the sum of
columns D to F in Table 8-10, which is divided by the volume in column B to provide a unit rate in column E. The
collection rate in column F is calculated by dividing the collection cost for each class in column D by the volumes.
All customers pay the same rate for collection. These rates are added in column G to provide a total volumetric
rate. The rate is multiplied by 9 Ccf, as discussed in Section 7. 1, and added to the monthly billing cost that was
calculated in row 5, column C of Table 8-9.
The result in column J, line 1, is the monthly bill that all single-family residential customers will receive. Column J
also presents non-residential customers' monthly minimums. These customers will also pay the volumetric rate in
column G for each Ccf over 9.
Monthly rates for ADUs, shown in Table 8-12, are derived by multiplying the single family residential volume rate
in column G by 4 Ccf.
Table 8-11: Wastewater Rate Calculation
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
(1)
0)
1 SFR
327,672
$ 881,442 $
430,895
2.69
1.32 $
4.01 $
36.05 $
3.03 $
39.07
2 MFR
275,241
740,402
361,947
2.69
1.32
4.01
36.05
3.03
39.07
3 Commercial (West)
145,076
699,007
190,778
4.82
1.32
6.13
55.20
3.03
58.23
4 Commercial (East)
314,521
413,601
1.32
1.32
11.84
3.03
14.86
5 Industrial (West)
62,907
351,998
82,724
5.60
1.32
6.91
62.19
3.03
65.22
6 Industrial (East)
346,898
456,177
1.32
1.32
11.84
3.03
14.86
7 Institutional (West)
23,922
64,351
31,458
2.69
1.32
4.01
36.05
3.03
39.07
8 Institutional (East)
14,625
19,232
1.32
1.32
11.84
3.03
14.86
1,510,862
$ 2,737,200 $
1,986,811
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 44
140
8.1.7 FIVE YEAR PROPOSED WASTEWATER SERVICE RATES
Table 8-12 shows the proposed 5-year rates for all customer classes. The out -year rates are derived by escalating the
rates from Table 8-11 by the revenue adjustments from Table 7-6. All rates are rounded up to the nearest whole
penny.
Table 8-12: Proposed Five -Year Wastewater Service and Usage Charges
S F R
$ 23.23
$ 39.07 $
42.60 $
46.65 $
51.09 $
55.95
MFR
38.04
39.07
42.60
46.65
51.09
55.95
Institutional West
21.98
39.07
42.60
46.65
51.09
55.95
Commercial West
26.88
58.23
63.47
69.50
76.11
83.35
Industrial West
22.87
65.22
71.10
77.86
85.26
93.36
Non -Res East
7.26
14.86
16.21
17.75
19.44
21.29
ADU
16.02
17.47
19.13
20.95
22.95
.•
April
abovesage
SFR
$ 0.73
N/A
MFR
0.91
4.01
4.37
4.79
5.25
5.75
Institutional West
0.91
4.01
4.37
4.79
5.25
5.75
Commercial West
1.04
6.13
6.69
7.33
8.03
8.80
Industrial West
1.04
6.91
7.54
8.26
9.05
9.91
Non -Res East
1.04
1.32
1.44
1.58
1.74
1.91
8.1.8 SINGLE FAMILY RESIDENTIAL WASTEWATER BILL IMPACTS
Table 8-13 shows a residential wastewater bill at various levels of usage under the proposed rates.
Table 8-13: Proposed Residential Wastewater Bills
5/8"
and 3/4"
9
29.80
39.07
9.27
5/8"
and 3/4"
10
30.53
39.07
8.54
5/8"
and 3/4"
16
34.91
39.07
4.16
5/8"
and 3/4"
30
50.97
39.07
(11.90)
1"
40
60.65
39.07
(21.58)
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 45
141
9. Rate Comparison
The following tables present a comparison of a 10 Ccf bill in El Segundo in 2020 and 2021 to equivalent bills in
several comparable communities in 2020. The City's current rates are lower than many others and continue to
compare favorably in the future.
Table 9-1: Water Bill Comparison
$123.01
$49.57
$60.37 $62.42 $65.80 $67.77 $68.73
$73.06
$53.39 $55.97
$40.15
El Segundo El Segundo Hermosa Inglewood GS Water CA American CA Water Manhattan CA Water PV Lomita LA County
Current Proposed 2021 Beach Hawthorne Beach Waterworks
■ Fixed ■ Variable ■ Surcharges
CITY OF EL SEGUNDO I WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 46
142
Table 9-2: Wastewater Bill Comparison
$30.53 $30.53 $32.53
$21.68
$39.07 $41.03
$35.15
$70.48
Hermosa Beach El Segundo Redondo Beach Culver City Manhattan El Segundo Santa Monica Los Angeles
Current Beach Proposed 2021
Fixed ■ Variable
Table 9-3: Combined Bill Comparison
$102.92
$83.92 $88.64
$70.68 $75.07 _
$193.49
El Segundo Current Hermosa Beach Redondo Beach El Segundo Proposed Manhattan Beach Los Angeles
2021
a Sewer ■ Water
CITY OF EL SEGUNDO ! WATER AND WASTEWATER FINANCIAL PLAN STUDY REPORT 47
143
NOTICE OF PUBLIC HEARING ON
PROPOSED WATER AND WASTEWATER
RATE INCREASE
Notice is hereby given that the City Council
of City of El Segundo ("City") will conduct
a public hearing on February 16, 2021 at
6 pm in the City Hall, located at 350 Main
Street, El Segundo, CA 90245, where it will
consider adopting increases to the City's
water and wastewater rates and charges.
The proposed increases are the result of a
detailed multi -year budget analysis ("finan-
cial plan") and findings of the El Segundo
Water and Wastewater Rate Study Report
("Rate Study") prepared by Raftelis, a finan-
cial consulting firm specializing in cost of
service analyses and rate setting. A copy of
this study is available on at www.elsegundo.
org or hard copies are available for review at
the City Clerk's Office. For assistance in de-
termining the impact of the proposed rate
increase on your bill, please call Customer
Service at 310-524-2300, or go to www.
elsegundo.org for the rate calculator.
The Rate Study determined the appropri-
ateness of the proposed rate increases and
involved a fair and equitable cost allocation
among water and wastewater customer
categories. The net impact of the proposed
changes in the rates for water and wastewater
customers will vary based upon actual water
consumption, customer class, and meter size.
Why am I Receiving
This Notice?
You are receiving this notice because you are
either a property owner in the City and/or
a customer of record of one or more water
and wastewater connections located within
the service area of the City of El Segundo.
You will be provided with a notice and bal-
lot for each parcel of property and/or water
and wastewater account you have with the
City. Only one protest ballot will be counted
for each parcel of property regardless of
how many are submitted by customers or
property owners for the parcel.
Background
The City of El Segundo provides water and
wastewater service to approximately 5,100
customer connections. The City's water util-
ity relies on water service charges to fund
the costs of operations, maintenance, and
wholesale water purchases. The City is also
responsible for the operation and mainte-
nance of an extensive wastewater collection
system but does not provide wastewater
treatment. Wastewater on the east side of
the City (east of Pacific Coast Highway)
is sent to Los Angeles County Sanitation
Districts (LACSD). The county bills those
customers directly on their annual property
tax bills. Wastewater from the west side is
treated by the City of Los Angeles, which
bills the City of El Segundo. These costs are
included in the proposed rates. The City, in
cooperation with Raftelis, examined its cur-
rent and future revenue and reserve balanc-
es and its ability to fund the required capital
needs along with ongoing operations.
The proposed changes are necessary to
maintain and improve existing water and
wastewater service. All customers are en-
couraged to conserve water to help reduce
their water bills.
The proposed rates are designed to comply
with state laws, improve rate equity and
fairness, and fund the City's costs of provid-
ing water and wastewater service including
capital reinvestment.
Why is the City Proposing
to Increase Rates?
Fund Wholesale Water
Rate Increases
The City purchases water from the West Ba-
sin Municipal Water District, which plans
to increase their wholesale rate to the City
of El Segundo. The City will pass through
this increased cost of water to its customers.
lu
February 16, 2021
6 PM
350 Main Street
El Segundo, CA 90245
310-524-2300
www.elsegundo.org
Fund Wastewater Treatment
Cost Increase
The west side of the City wastewater is
treated by the City of Los Angeles, which is
increase by 91 % (2017 to 2021).
Repair & Replace Aging Pipelines
The City maintains over 65 miles of water
pipelines which need to be repaired or
replaced as they reach the end of their
useful lives. Replacing them will ensure
that the City can continue providing high -
quality water to its customers 24 hours a
day and meet safety requirements for fire
flow and pressure.
In addition, the City operates a wastewa-
ter collection system that requires regular
maintenance to meet the required envi-
ronmental standards.
NOTICE OF PUBLIC HEARING ON PROPOSED WATER AND WASTEWATER RATE INCREASE 1
144
Proposed Water Rates
The City proposes to adopt the rates as shown in the following tables. The proposed rate structure includes two components: 1) a fixed
monthly charge that is billed regardless of water use and is shown in the first table, and 2) a volumetric charge billed for each unit of metered
water use as shown in the second table. The Single -Family Residential class has tiered rates with the tier breakpoints as shown. The volume
rate applies to each hundred cubic feet (Ccf) of water use; one hundred cubic feet (Ccf) equals 748 gallons.
METER CHARGES/FIXED
Meter Size (inches) 5 8" and 3 4"April$18.18 $18.73
MONTHLY CHARGE
$19.30 $19.88 $20.48
1"
$24.71
$25.46
$26.23
$27.02
$27.84
1 V2"
$41.05
$42.29
$43.56
$44.87
$46.22
2"
$60.65
$62.47
$64.35
$66.29
$68.28
3"
$122.74
$126.43
$130.23
$134.14
$138.17
4"
$214.23
$220.66
$227.28
$234.10
$241.13
6"
$433.16
$446.16
$459.55
$473.34
$487.55
8"
$923.29
$950.99
$979.52
$1.008.91
$1,039,18
10"
$1.380.75
$1,422.18
$1,464.85
$1,508.80
$1.554.07
As shown in the table below the tier structure in the proposed rates will be changing. For Residential usage, tiers will go from four tier levels
to three. For Non -Residential usage, tiers will go from four tier levels to a single uniform rate.
Volumetric April 1, 2021 January 1, 2022 January 1, 2023 January 1, 2024 January 1, 2025
Residential
Tier 1
$2.88
$2,97
$3.06
$ 3.16
$3.26
Tier II
$5.47
$5.64
$5.81
$5.99
$6.17
Tier 111
$6,86
$7.07
$7.29
$7.51
$7.74
Non -Residential
$4.17
$4.30
$4.43
$4.57
$4.71
Chevron
$4.90
$5.05 f
$5.21
$5.37
$5.54
Recycled Water Rates
Recycled water rates from West Basin will continue to be directly passed through to the customer. The customer will also pay the fixed charge
as shown below. Most non -city recycled users will no longer pay a surcharge, and the surcharge to Chevron will increase as shown below'
Meter Size (inches) April 1, 2021 I January 1, 2022 1 January 1, 2023 I January 1, 2024 January 1, 2025
•-
Meter Size (inches)
5/8" and 3./4"
April $18.18
$18.73
$19.30 $19.88
$20.48
1"
$24.71
$25.46
$26.23
$27.02
$27.84
1112
$41.05
$42.29
$43.56
$44.87
$46.22
2"
$60.65
$62.47
$64.35
$66.29
$68.28
3"
$122.74
$126.43
$130.23
$134.14
$138.17
4"
$214.23
$220.66
$227.28
$234.10
$241.13
6"
$433.16
$446.16
$459.55
$473.34
$487.55
8"
$923.29
$950.99
$979.52
$1,008.91
$1,039.18
10"
$1,380.75
$1,422.18
$1,464.85
$1,508.80
$1,554.07
'Note the water consumption/volumetric charge is based upon current anticipated rate increases from West Basin Municipal Water District. If the District
increases or decreases these anticipated rate increases, the charges shown will be increased or decreased consistent with these rate changes by West Basin.
'Direct West Basin recycled rates are not shown in this notice. If the District increases or decreases these rates, the City's charges to the customer will
change consistent with these changes by West Basin.
NOTICE OF PUBLIC HEARING ON PROPOSED WATER AND WASTEWATER RATE INCREASE 2
145
Private Fire Protection Rates
The City proposes to charge private fire protection rates, shown in the following table, to customers with private fire protection connections to
cover costs associated with maintaining the capacity to fight fires. This charge only applies to customers with private fire connections.
Meter Size (inches) 5 8" and 3 4" April $8.73 $9.00
$9.27
$9.55
$9.84
1"
$9.13
$9.41
$9.70
$10.00
$10.30
1 1/2"
$10.56
$10.88
$11.21
$11.55
$11.90
2"
$13.03
$13.43
13.84
$14.26
$14.69
3"
$21.90
$22.56
$23.24
$23.94
$24.66
4"
$37.20
$38.32
$39.47
$40.66
$41.88
6"
$92.11
$94.88
$97.73
$100.67
$103.70
8"
$186.83
$192.44
$198.22
$204.17
$210,30
10"
$329.29
$339.17
$349.35
$359.84
$370.64
Proposed Wastewater Rates
The current wastewater charges include a fixed monthly charge and a volumetric charge. Single family residential customers will be billed
a flat rate each month. Other classes will have a minimum fixed charge assuming 9 Ccf, along with additional volumetric charges for usage
above the 9 Ccf minimum. The volume rate and minimum bill amount depends on whether the resident is in the west side or east side.'
SFR
$39.07 1
$42.60
$46.65
$51.09 1
$55.95
MFR
$39.07
$42.60
$46.65
$51.09
$55.95
Institutional West
$39.07
$42.60
$46.65
$51.09
$55.95
Commercial West
$58.23
$63.47
$69.50
$76.11
$83.35
Industrial West
$65.22
$71.10
$77.86
$85.26
$93.36
Non -Res East
$14.86
$16.21
$17.75
$19.44
$21.29
ADU
$16.02
1 $17.47
$19.13
$20.95
1 $22.95
SFR
N/A
N/A
N/A
N/A
I N/A
MFR
$4.01
$4.37
$4.79
$5.25
$5.75
Institutional West
$4.01
$4.37
$4.79
$5.25
$5.75
Commercial West
$6.13
$6.69
$7.33
$8.03
$8.80
Industrial West
$6.91
$7.54
$8.26
$9.05
$9.91
Non -Res East
$1.32
$1.44
$1.58
$1.74
$1.91
Public Hearing
The property owner of record pursuant to the latest certified property record rolls from the County of Los Angeles, or any tenant directly
responsible for payment of water and wastewater rates (i.e., a customer of record who is not a property owner), may submit a written protest
to the proposed rate increases to the City's water and wastewater rates; provided, however, only one protest will be counted per identified
parcel. A protest form for each service, water and wastewater is enclosed and if you want to have your protest counted you must use the
attached form and return in accordance with the requirements set forth on the protest form. You can protest the proposed water rate increases
or wastewater increases, or both, but you must submit a properly completed protest form for each service that you wish to protest. All written
protests must be received prior to the conclusion of the public comment portion of the public hearing. Any protest submitted via email,
facsimile, or other electronic means will not be accepted as a formal written protest. For any protest submittal, whether mailed or submitted
in person, if you do not use the enclosed return envelopes, please identify on the front of the envelope that the enclosed letter is for the public
hearing on Proposed Water and Wastewater Rate Increases. The City Council will consider all written protests timely submitted and hear
and consider all public comments made at the public hearing. Oral comments at the public hearing will not qualify as formal protests unless
accompanied by a properly completed written protest. At the conclusion of the public hearing, the City Council will determine whether to
adopt the proposed rate increases described in this notice. If, after the close of the public hearing, written protests against the proposed rate
increases are not presented by a majority parcels upon which they are proposed to be imposed, the City Council will be authorized to impose
the rate increases. If you have any questions regarding the information provided in this notice, or the rates applicable to your property, please
contact Customer Service at 310-524-2300 or 310-524-2319.
3Note the wastewater rates are based upon current anticipated treatment rate increases from the City of Los Angeles. If the City of Los Angeles increases or
decreases these anticipated rate increases, the charges shown will be increased or decreased consistent with these rate changes by the City of Los Angeles.
NOTICE OF PUBLIC HEARING ON PROPOSED WATER AND WASTEWATER RATE INCREASE 3
146
<<APNFMT>>
<< CUSTOMER/OWNER1>>
<<OWNER 2>>
<<CAREOF>>
<<MAILING 1>>
<<MAILING 2>>
<<CITY STATE ZIP>>
City of El Segundo
Water Rate Increase
Protest Form
Service Address: <<SITUS>>
If you wish to protest the implementation of the multi -year water rate increase, you must 1) check
the box below indicating that you protest the proposed service charge increase, 2) check the
owner and/or water billing customer box(es) as applicable, 3) print and sign your name on the
lines provided, and 4) deliver the signed protest form to the City Clerk in the pre -addressed
envelope provided before the close of the public hearing scheduled for 6:00 p.m. on February 16,
2021 by one of the following methods: U.S. mail addressed to City Clerk's Office Room 5, City of
El Segundo, 350 Main Street, El Segundo, CA 90245, or deliver to the City Clerk utilizing the Los
Angeles County Permanent Drop Box located at the corner of Main Street and Holly Avenue, or
hand deliver to the City Council Chamber located at 350 Main Street El Segundo CA 90245 on
February 16, 2021 from 6:00 p.m. until the close of the public hearing. (PLEASE NOTE: the Los
Angeles County Permanent Drop Box will be available until 12:00 p.m. February 16, 2021).
❑ 1 protest the proposed multi -year Water Service Charge Increased Rates.
I hereby declare under penalty of perjury that I am:
❑ A record owner of the parcel listed above.
❑ A water billing customer of the parcel listed above.
Print Legibly — Full Name (Required)
Signature (Required)
Only completed and signed original protest forms will be counted. Unsigned
protest forms or non -original protest forms will not be counted.
«Code Yes» 147
�►�„ 4
4prGd
<<APN-FMT>>
«CUSTOMER/OWNER1>>
<<OWNER2>>
<<CAREOF>>
<<MAILING 1>>
<<MAILING 2>>
<<CITY STATE ZIP>>
City of El Segundo
Wastewater Rate Increase
Protest Form
Service Address: <<SITUS>>
If you wish to protest the implementation of the multi -year wastewater rate increase, you must 1)
check the box below indicating that you protest the proposed service charge increase, 2) check the
owner and/or wastewater billing customer box(es) as applicable, 3) print and sign your name on the
lines provided, and 4) deliver the signed protest form to the City Clerk in the pre -addressed envelope
provided before the close of the public hearing scheduled for 6:00 p.m. on February 16, 2021 by
one of the following methods: U.S. mail addressed to City Clerk's Office Room 5, City of El Segundo,
350 Main Street, El Segundo, CA 90245, or deliver to the City Clerk utilizing the Los Angeles County
Permanent Drop Box located at the corner of Main Street and Holly Avenue, or hand deliver to the
City Council Chamber located at 350 Main Street El Segundo CA 90245 on February 16, 2021 from
6:00 p.m. until the close of the public hearing. (PLEASE NOTE: The Los Angeles County Permanent
Drop Box will be available until 12:00 p.m. February 16, 2021).
❑ 1 protest the proposed multi -year Wastewater Service Charge Increased Rates.
hereby declare under penalty of perjury that I am:
❑ A record owner of the parcel listed above.
❑ A wastewater billing customer of the parcel listed above.
Print Legibly — Full Name (Required)
Signature (Required)
Only completed and signed original protest forms will be counted. Unsigned
protest forms or non -original protest forms will not be counted.
<<Code_Yes>> 148
CITY OF
E L S E GU N D O City Council Agenda Statement
Meeting Date: February 16, 2021
Agenda Heading: Staff Presentation
TITLE:
COVID-19 Update & Action Items
RECOMMENDATION:
1. Receive and file COVID-19 Update,
2. Ratify January 29, 2021 Amendment to City Administrative Order # 1 to Address
COVID-19.
3. Authorize Mayor to sign and send letters of support to allow youth sporting activity and
competition to Governor Newsom and Los Angeles County Board of Supervisors.
4. Adopt resolution designating the first Monday in March as "COVID-19 Memorial Day".
FISCAL IMPACT:
There is no direct fiscal impact related to receiving this COVID-19 Update and the other
recommended items. Total COVID-19 related to date equals just under $3,300,000. Of
this amount, approximately $2,280,000 represents personnel costs and approximately
$1,020,000 represents non -personnel costs. FEMA has reimbursed the City for over
$500,000 so far. It is anticipated that the City will be reimbursed for much of the remaining
expenditures.
BACKGROUND:
When a local or state emergency is declared, the City's municipal code provides for the
carrying out of plans for the protection of persons and property within the City. In such
emergency, the City Manager serves as the Director of Emergency Services ("Director").
The Director is empowered to, make and issue rules and regulations on matters
reasonably related to the protection of life and property, and to acquire equipment,
materials, supplies and services without following the City's standard purchasing
procedures. However, such rules and regulations must be confirmed at the earliest
practicable time by City Council (ESMC §§ 2-2-5).
On March 16, 2020, City of El Segundo proclaimed an emergency pertaining to the novel
Coronavirus (COVID-19) and has since issued two administrative orders. The City
activated its Emergency Operations Plan and its All -Hazards Incident Management
Team. Since that time, El Segundo has continued to conduct consequence management
and implement policies and protocols to adjust to the needs of the ongoing incident.
0
EEO
COVID-19 Pandemic Update
February 16, 2021
Page 2 of 4
DISCUSSION:
COVID-19 Update
The year 2021 and new presidential administration has resulted in significant changes for
the pandemic response that pertain to El Segundo.
During his first week in office, President Biden authorized 100% reimbursement of eligible
costs under the FEMA public assistance program under the Robert T. Stafford Act. The
reimbursement supersedes the previous and standard reimbursement of 75% of eligible
costs. On January 25t", 2021, the State of California released the regional stay-at-home
order and reverted to the Blueprint for a Safe Economy. Los Angeles County Department
of Public Health updated its Health Officer Order on January 29, 2021. These actions
allowed personal services to resume, restaurants to open for outdoor dining, and youth
sports to resume conditioning and skills building. Other restrictions were lifted as well. All
newly permitted activities are contingent on safety protocols to be followed.
California began providing vaccinations in December 2020. The distribution of vaccines
at points of distribution; through private sector clinics and pharmacies; and hospital
networks has occurred specifically for Tier 1 Phase 1A and 1 B cohorts which include
people age 65 and older, healthcare workers, education and childcare workers,
emergency services, and food and agriculture workers.
The State of California has announced that it is changing its vaccine rollout strategy in
California after completion of Tier 1 Phase 1A and 1 B. The state plans to transition to
age -based eligibility, allowing California to scale up and down quickly, while ensuring
vaccine goes to disproportionately impacted communities.
Amendment to City Administrative Order #1 — January 29, 2021
As a result of the State and Health Officer Order changes, the City's emergency
Administrative Order # 1 to Address COVID-19 was amended by City Manager Scott
Mitnick on January 29th, 2021. The amended order is attached and includes the following:
1 All restaurant and retail food facilities in the City of El Segundo may re -open for
outdoor table dining in compliance with Los Angeles County Public Health Officer's
current order.
2. Any restaurant or retail food facility with a valid permit to conduct outdoor dining
within the public right-of-way may resume outdoor dining service in compliance with
the terms of the City -issued permit, Municipal Code section 15-2-16, and the Los
Angeles County Public Health Officer's most current order.
3. Restaurants and retail food facilities that are not presently authorized to conduct
outdoor dining service within the public right-of-way may apply for a Temporary
Encroachment Permit.
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COVID-19 Pandemic Update
February 16, 2021
Page 3 of 4
4, The Development Services Director, or designee, is authorized to temporarily waive
otherwise applicable on -site parking requirements for businesses. A Temporary Use
Permit is required for the displacement of any on -site parking to allow additional
space for outdoor dining or outdoor retail uses.
5. If allowed under the most recent orders of the State of California and the Los Angeles
County Public Health Officer, personal care facilities, assembly halls and fitness
centers may, upon obtaining a Temporary Use Permit.
6. Personal care facilities, assembly halls and fitness centers that wish to provide
services outdoors and within the public right-of-way may apply for a Temporary
Encroachment Permit.
8. Other uses may be allowed outdoors upon issuance of a Temporary Use Permit
9. The fees for all permits issued pursuant to this order are hereby waived.
10. Until further notice, all persons must wear a face covering or mask over both the
nose and mouth whenever they are present in any common area within the Park
Vista Senior Housing Facility located at 615 E. Holly Avenue.
Letters of Support to Allow Youth Sporting Activity and Competition
In response to a request from a Councilmember, staff has prepared attached draft letters
to Governor Newsom and the Los Angeles County Board of Supervisors requesting that
the California Department of Public Health and Los Angeles County Department of Public
Health issue new guidance that will permit youth sporting activities and competition to
resume immediately.
Resolution Supporting the Designation of the First Monday in March as COVID-19
Memorial Dav
As the one-year anniversary of the stay-at-home order and the beginning of the
coronavirus pandemic approaches, nearly 500,000 American deaths are attributed to
COVID-19. A bipartisan group of mayors nationwide has come together to support the
designation of the first Monday in March as "COVID-19 Memorial Day" in remembrance
of those who have lost their lives and in honor of those who continue to suffer from the
impacts of this virus. Attached is a proposed resolution for City Council to consider
showing City of El Segundo's support.
SUMMARY:
The COVID-19 Pandemic is improving due to reduced transmission of the disease,
vaccinations in progress, improved hospital capacity, and some restrictions being lifted.
An amendment to the City of El Segundo Administrative Order # 1 to Address COVID-19
allowed businesses to reopen and support the El Segundo economy. The letter to the
State and County advocating for revised guidelines to permit youth sports activities and
competitions (with safety precautions implemented) is another step towards the gradual
151
COVID-19 Pandemic Update
February 16, 2021
Page 4 of 4
reopening process. Finally, the resolution designating the first Monday in March as
"COVID-19 Memorial Day" honors the victims of the pandemic and reminds the
community to stay vigilante in the fight against this disease.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 2: Support Community Safety and Preparedness
Objective A: El Segundo is a Safe and Prepared City.
PREPARED BY: Randal A. Collins
APPROVED BY: Barbara Voss, Deputy City Manager }.
ATTACHED SUPPORTING DOCUMENTS:
1. January 29, 2021 Administrative Order # 1 to Address COVID-19
2. Proposed Letter on Youth Sports to Governor Newsom
3. Proposed Letter on Youth Sports to the Los Angeles County Board of Supervisors
4. Proposed Resolution Declaring the First Monday in March 2021 as COVID-19
Memorial Day
152
Elected Officials
Drew Boyles,
Mayor
Chris Pimentel,
Mayor Pro Tem
Carol Pirsztuk,
Councilmember
Scot Nicol,
Councilmember
Lance Giroux,
Councilmember
Tracy Weaver,
City Clerk
Matthew Robinson,
City Treasurer
Appointed Officials
Scott Mitnick,
City Manager
Mark D. Hensley,
CityAttorney
Department Directors
Barbara Voss,
Deputy City Manager
Joseph Lillio,
Chief Financial Officer
Melissa McCollum,
Community Services Director
Sam Lee,.
Development Services Director
Chris Donovan,
Fire Chief
Donna Peter,
Human Resources Director
(Interim)
Charles Mallory,
IT Director
Bill Whalen,
Police Chief
Elias Sassoon,
Public Works Director
OF
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Office of the City Manager
ADMINISTRATIVE ORDER NO. 1 TO ADDRESS COVID-19
Amended and Restated Order Issued: January 29, 2021
By virtue of authority vested in me as the City Manager of the City of El Segundo pursuant to the
provisions of the El Segundo Municipal Code, Section 2-2-5, to promulgate, issue, and enforce
rules, regulations, orders, and directives, I hereby attest to the following orders as necessary for
the protection of life and property. This Order will take effect immediately and remain in effect
until the current COVID-19 emergency is terminated by City Council resolution.
This Order is issued in accordance with, and incorporates by reference, the March 4, 2020
Proclamation of a State of Emergency issued by Governor Gavin Newsom, the March 4,
2020 Proclamation of Public Health Emergency issued by the Los Angeles County Board of
Supervisors and Los Angeles County Health Officer, and the March 17, 2020, Confirmation of a
Local Emergency issued by the El Segundo City Council.
On January 29, 2021, the Los Angeles County Health Officer issued a new order which applies to
all cities in Los Angeles County (including the City of El Segundo) except the cities of Pasadena
and Long Beach. This Order is intended to supplement and further clarify the Los Angeles County
Health Officer's Order, as amended, within the City of El Segundo.
PURSUANTTO GOVERNMENT CODE SECTION 8630AND EL SEGUNDO MUNICIPAL
CODE CHAPTER 2-2, THE CITY MANAGER, ACTING AS THE EMERGENCY
SERVICES DIRECTOR, ORDERS THE FOLLOWING:
1) All restaurant and retail food facilities in the City of El Segundo may re -open for outdoor
table dining in compliance with the County's current order.
2) Any restaurant or retail food facility with a valid permit to conduct outdoor dining within
the public right-of-way may resume outdoor dining service in compliance with the terms of
the City -issued permit, Municipal Code section 15-2-16, and the Los Angeles County Health
Officer's most current order.
3) Restaurants and retail food facilities that are not presently authorized to conduct outdoor
dining service within the public right-of-way may apply for a Temporary Encroachment
Permit. For restaurants and retail food facilities located within the Downtown Specific Plan
("DSP") Area, the DSP's design review requirement for outdoor dining is hereby waived
for the term of this order or until further notice and the Public Works Director or designee is
authorized to issue Temporary Encroachment Permits that may remain effective through July
1, 2021. The Public Works Director or designee may issue a Temporary Encroachment Permit
pursuant to this paragraph without having first received the proof of insurance required by the
terms of the temporary permit, provided that proof of adequate insurance is submitted to the
Public Works Director within 72 hours after issuance of the temporary permit. If the applicant
fails to timely provide proof of insurance, the permit will automatically become null and void.
Those persons interested in applying for and receiving such a permit may contact the City's
Acting Public Works Inspector Nick Petrevski at 310-524-2360 or n etrevski reelse undfl.or,T
for more information.
153
4) The Development Services Director or his designee is authorized to temporarily waive otherwise applicable on -site
parking requirements for any restaurant, retail food facility, or retail operation that wishes to conduct temporary
outdoor dining or temporary outdoor retail uses within a portion of the onsite, off-street parking area that serves the
restaurant, retail food facility or retail operation. Temporary outdoor dining within an on -site, off-street parking area
must be conducted in accordance with El Segundo Municipal Code section 15-2-16 and the Los Angeles County Health
Officer's most current order. Temporary outdoor retail uses within an on -site, off-street parking area must be conducted
in accordance with the Los Angeles County Health Officer's most current order. A Temporary Use Permit (TUP)
is required for the displacement of any on -site parking to allow additional space for outdoor dining or outdoor retail
uses. The Development Services Director or his designee is authorized to issue TUPs consistent with this paragraph.
The Development Services Director or his designee may issue a TUP pursuant to this paragraph without having first
received the proof of insurance required by the terms of the temporary permit, provided that proof of adequate insurance
is submitted to the Director or his designee within 72 hours after issuance of the temporary permit. If the applicant fails
to timely provide proof of insurance, the permit will automatically become null and void. Those persons interested in
applying for and receiving such a permit may contract the City's Principal Planner Eduardo Schonbom at (310) 524-
2312 or eschonborn[@elsegundo.org for more information.
5) Any retail operation with a valid permit to conduct outdoor retail uses within the public right-of-way may resume
outdoor retail uses in compliance with the terms of the City -issued permit and the Los Angeles County Health Officer's
most current order. Retail operations that are not presently authorized to conduct outdoor retail uses within the public
right-of-way may apply for a Temporary Encroachment Permit. For retail operations located within the Downtown
Specific Plan Area, the DSP's design review requirement for outdoor retail uses is hereby waived for the term of this
order or until further notice and the Public Works Director or designee is authorized to issue Temporary Encroachment
Permits that may remain effective through July 1, 2021. The Public Works Director may issue a Temporary Encroachment
Permit pursuant to this paragraph without having first received the proof of insurance required by the terms of the
temporary permit, provided that proof of adequate insurance is submitted to the Public Works Director within 72 hours
after issuance of the temporary permit. If the applicant fails to timely provide proof of insurance, the permit will
automatically become null and void. Those persons interested in applying for and receiving such a permit may contact
the City's Acting Public Works Inspector Nick Petrevski at 310-524-2360 or npetrevski@elsegundo.org for more
information.
6) If allowed under the most recent orders of the State of California and the Los Angeles County Health Officer, personal
care facilities, assembly halls and fitness centers may, upon obtaining a Temporary Use Permit (TUP) from the City,
provide services outdoors on the property on which the use is located. The Development Services Director (Director)
or his designee is authorized to temporarily waive applicable on -site parking requirements for any such uses that wishes
to temporarily provide services within a portion of the on -site, off-street parking area that serves the use. The Director
may condition each TUP as deemed necessary and appropriate to ensure compatibility with adjacent uses. Any services
provided outdoors pursuant to a TUP must be conducted in a manner consistent with the most current applicable order
of the Los Angeles County Health Officer. No TUP may be issued for a use that is prohibited by the most recent order
of the State of California or the Los Angeles County Health Officer. TUPs issued pursuant to this paragraph will remain
effective through July 1, 2021.
7) Personal care facilities, assembly halls and fitness centers that wish to provide services outdoors and within the
public right-of-way may apply for a Temporary Encroachment Permit. The Public Works Director or designee is
authorized to issue Temporary Encroachment Permits that may remain effective through July 1, 2021 and may condition
each such permit as deemed necessary and appropriate to protect and preserve the public health, safety and welfare.
Any services provided within the public right-of-way pursuant to a Temporary Encroachment Permit must be conducted
in a manner consistent with the most current applicable order of the Los Angeles County Health Officer, and must
comply with all applicable laws, including the Americans with Disabilities Act. The Public Works Director or designee
may issue a Temporary Encroachment Permit pursuant to this paragraph without having first received the proof of
insurance required by the terms of the temporary permit, provided that proof of adequate insurance is submitted to the
Public Works Director within 72 hours after issuance of the temporary permit. If the applicant fails to provide proof of
insurance within that period, the permit will automatically become null and void.
154
8) Other uses may be allowed outdoors upon issuance of a Temporary Use Permit (TUP) from the City, provided: a) the
use is allowed under the most recent orders of the State of California and the Los Angeles County Health Officer; b) LA
County has provided/adopted reopening protocols or guidelines for said use; and/or, c) the use is associated with the
existing use on the property for which a TUP is issued.
9) The fees for all permits issued pursuant to this order are hereby waived.
10) Until further notice, all persons must wear a face covering or mask over both the nose and mouth whenever they are
present in any common area within the Park Vista Senior Housing Facility located at 615 E. Holly Avenue.
This version of Administrative Order No. 1 supersedes all previous versions. A violation of any of the above prohibitions
constitutes a misdemeanor under El Segundo Municipal Code Section 2-2-8 and is punishable by fines not to exceed $1,000
or imprisonment not to exceed six months.
Scott Mitnick
City Manager/Director of Emergency Services
City of El Segundo
Date: January 29, 2021
155
Elected Officials:
Drew Boyles,
Mayor
Chris Pimentel
Mayor Pro Tem
Carol Pirsztuk,
Council Member
Scot Nicol,
Council Member
Lance Giroux,
Council Member
Tracy Weaver,
City Clerk
Matthew Robinson,
City Treasurer
Appointed Officials:
Scott Mitnlck,
City Manager
Mark D. Hensley,
City Attorney
Department Directors -
Barbara Voss
Deputy City Manager
Joseph Lillio,
Finance
Chris Donovan,
Fire Chief
Charles Mallory,
Information Technology
Services
Melissa McCollum,
Community Services
Sam Lee,
Development Services
Bill Whalen,
Police Chief
Elias Sassoon,
Public Works
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www- elseoy"010.it-era
Office of the Mayor
February 16, 2021
Honorable Governor Newsom
Governor, State of California
State Capital, First Floor
Sacramento, CA 95814
RE: Youth Sports in California
Dear Governor,
The El Segundo City Council urges you to require the California Department
of Public Health (CDPH) to issue new guidance that will permit youth
sporting activities and competition in California to resume immediately, with
the proper safety protocols in place. The pandemic has had devasting
impacts on our children's mental health, and our children are at risk of
suffering long-standing trauma associated with anxiety and depression that
health experts are only starting to understand.
The City of El Segundo is a family -friendly sports town in the South Bay that
has nine youth organizations that serve 15 sports and approximately two
thousand students. Our students join millions of others across the state that
have been sidelined through no fault of their own. Youth sports provide
students with direction, discipline, and hope. And this is exactly what our
students desperately need to weather the pandemic.
The City stands in alliance with the members of the California State
Assembly working to pass a bipartisan resolution as part of the "Let Them
Play CA" effort to update the CDPH guidance to allow youth sports to
resume. The co-authors of the resolution, Yuba City Assemblyman James
Gallagher and Rocklin -based Assemblyman Kevin Kiley cite that more than
40 states have proven that it is possible to allow youth sporting activities to
continue with limiting COVID-19 transmission. The resolution also states
that the ban on youth sports competition is currently creating an alarming
negative mental health impact in the areas of suicide ideation, anxiety,
depression, and suicide itself.
350 Main Street, El Segundo, California 90245-3813
Phone (310) 524-2302 Fax (310) 322-7137
156
We understand the need for a cautious approach to issuing public health guidelines, but
with the proper safety protocols in place, it is possible to find a balance between
preventing transmission and allowing our children to play sports again.
As a result, the El Segundo City Council respectfully requests that you require CDPH
update its guidance allowing all youth sports to resume immediately, with proper safety
protocols in place. The change will support the well-being of children and their mental
health as we move toward not just economic recovery but mental health recovery as
well.
Sincerely,
;� -_- .
Drew oyles
Mayor of El Segundo
CC: El Segundo City Council
Honorable State Senator Ben Allen
Honorable State Assemblymember Autumn Burke
Honorable L.A. County Supervisor Janice Hahn
350 Main Street, El Segundo, California 90245-3813
Phone (310) 524-2302 Fax (310) 322-7137
157
Elected Officials:
Drew Boyles,
Mayor
Chris Pimentel
Mayor Pro Tern
Carol Pirsztuk,
Council Member
Scot Nicol,
Council Member
Lance Giroux,
Council Member
Tracy Weaver,
City Clerk
Matthew Robinson,
City Treasurer
Appointed Officials:
Scott Mitnick,
City Manager
Mark D. Hensley,
City Attorney
Department Directors:
Barbara Voss
Deputy City Manager
Joseph Lillio,
Finance
Chris Donovan,
Fire Chief
Charles Mallory,
Information Technology
Services
Melissa McCollum,
Community Services
Sam Lee,
Development Services
Bill Whalen,
Police Chief
Elias Sassoon,
Public Works
www.eisevundo.om
www.elseaundabysiness.com
www.elsoaund0QQ..Q —
Office of the Mayor
February 16, 2021
Supervisor Hilda L. Solis
Supervisor Holly J. Mitchell
Supervisor Sheila Kuehl
Supervisor Janice Hahn
Supervisor Kathryn Barger
500 West Temple St., Ste 383
Los Angeles, CA 90012
RE: Youth Sports in California
Dear Members of the Los Angeles County Board of Supervisors:
The El Segundo City Council urges you to require the Los Angeles County
Department of Public Health to issue new guidance that will permit youth
sporting activities and competition to resume immediately, with the proper
safety protocols in place. The pandemic has had devasting impacts on our
children's mental health, and our children are at risk of suffering long-
standing trauma associated with anxiety and depression that health experts
are only starting to understand.
The City of El Segundo is a family -friendly sports town in the South Bay that
has nine youth organizations that serve 15 sports and approximately two
thousand students. Our students join millions of others across the state that
have been sidelined through no fault of their own. Youth sports provide
students with direction, discipline, and hope. And this is exactly what our
students desperately need to weather the pandemic.
The City stands in alliance with the members of the California State
Assembly working to pass a bipartisan resolution as part of the "Let Them
Play CA" effort to update the CDPH guidance to allow youth sports to
resume. The co-authors of the resolution, Yuba City Assemblyman James
Gallagher and Rocklin -based Assemblyman Kevin Kiley cite that more than
40 states have proven that it is possible to allow youth sporting activities to
continue with limiting COVID-19 transmission. The resolution also states
that the ban on youth sports competition is currently creating an alarming
350 Main Street, El Segundo, California 90245-3813
Phone (310) 524-2302 Fax (310) 322-7137
158
negative mental health impact in the areas of suicide ideation, anxiety, depression, and
suicide itself.
We understand the need for a cautious approach to issuing public health guidelines, but
with the proper safety protocols in place, it is possible to find a balance between
preventing transmission and allowing our children to play sports again.
As a result, the El Segundo City Council respectfully requests that you require the L.A.
County Department of Public Health to update its guidance allowing all youth sports to
resume immediately, with proper safety protocols in place. The change will support the
well-being of children and their mental health as we move toward not just economic
recovery but mental health recovery as well.
Sincerely,
1
Drew Boyles
Mayor of El Segundo
CC: El Segundo City Council
Honorable State Senator Ben Allen
Honorable State Assemblymember Autumn Burke
350 Main Street, El Segundo, California 90245-3813
Phone (310) 524-2302 Fax (310) 322-7137
159
RESOLUTION NO. _
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO, CALIFORNIA, SUPPORTING THE DESIGNATION OF THE
FIRST MONDAY IN MARCH AS "COVID-19, MEMORIAL DAY" IN
REMEMBERANCE OF THOSE WHO HAVE LOST THEIR LIVES AND IN
HONOR OF THOSE WHO CONTINUE TO SUFFER FROM THE IMPACTS
OF THIS VIRUS.
The City Council of the City of El Segundo does resolve as follows:
WHEREAS, a group of mayors nation-wide have come together to support the
designation of the first Monday in March as "COVID-19 Memorial Day";
WHEREAS, COVID-19 (SARS-CoV-2) is an illness caused by a virus that can transmit
from person to person and has spread across the world, creating a global pandemic that
is having catastrophic effects on human life, our community, and our economy;
WHEREAS, to mitigate the spread of COVID-19, observance of public health orders to
social distance and stay at home have created challenges for small businesses, workers,
and schools which are working to comply with limited resources;
WHEREAS, school districts, teachers, students, and parents are grappling with the
challenges of distance learning and working to prevent any potential learning loss due to
not being in -person;
WHEREAS, in response to rapid spread of COVID-19 and stay-at-home orders, essential
workers have stepped up to provide critical services to help protect our communities and
save lives, sacrificing their own health and safety;
WHEREAS, the symptoms and severity of COVID-19 can vary dramatically by individual
and the long-term health implications for survivors is largely unknown, as many survivors
suffer with lingering side -effects of the disease long after they no longer test positive;
WHEREAS, as of the date this resolution is being considered, an estimated 2,362,410
(2/11/21) people worldwide, 466,465 (2/11/21) in the United States, and 4 (2/11/21) City
of El Segundo residents have lost their lives due to complications associated with this
deadly virus;
WHEREAS, each life lost to COVID-19 mattered and leaves an absence in the hearts of
loved ones, family members, and surrounding community; and
WHEREAS, public health guidance and policies targeted at prevention, such as social
distancing, wearing masks in public, and staying home help mitigate the spread of
COVID-19, prevent illness, and lessen the burden on individuals and society.
Page 1 of 2
160
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of El Segundo:
SECTION 1: The City Council hereby supports the designation of the first Monday in
March as "COVID-19 Memorial Day," in remembrance of those who have lost their lives
and in honor of those who continue to suffer from the impact of this virus; and urges the
public to continue taking preventative measures such as social distancing and following
public health orders to mitigate the spread of this virus, in tribute to essential workers and
those who rose in service to protect the public.
SECTION 2: The City Clerk is directed to certify the adoption of this Resolution.
SECTION 3: This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this day of
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
Drew Boyles, Mayor
, 2021.
Page 2 of 2
161
CITY OF
E L S E GU N D O City Council Agenda Statement
Meeting Date: February 16, 2021
Agenda Heading: Report from Staff
TITLE:
Selection of Many Mansions to serve as City's Affordable Housing Services Provider
RECOMMENDATION:
Authorize City Manager to enter into an Exclusive Negotiating Agreement (ENA) with
Many Mansions to serve as City's Affordable Housing Services Provider to develop and
manage affordable housing units, services, and programs.
FISCAL IMPACT:
Once an Affordable Housing Services Provider is on board, this firm will assume financial
responsibility for developing and managing the City's Affordable Housing Program. This
will include being responsible for the financial aspects of this program. Eventually, the
City's General Fund direct and indirect financial exposure will be shifted to the Affordable
Housing Fund and other outside funding sources.
The recommended firm has offered to donate its staff time to work with the City and
community throughout the initial strategic planning process. If specific studies are
required as part of the process, the firm will invoice its actual cost for the time spent with
no mark ups. If there are actual costs for this effort, this would be charged to the
Affordable Housing Fund.
The firm selected will be compensated for its work on future affordable housing
development projects via outside funding sources, including the customary developer
fees, revenue streams, residual receipts, etc. The firm will also be compensated for its
property management services, tenant services, and monitoring services provided to
affordable housing projects via fee structures that comport with industry standards,
including income generated from each project and the City's Affordable Housing Fund.
One of the main goals of this effort is to ensure that each affordable project and program
remains financially sustainable over the long run without requiring recurring General Fund
subsidies.
BACKGROUND:
Pre -Affordable Housing Program (,1917-2019)
Throughout El Segundo's initial 102-year history as an incorporated municipality, the City
did not have a formal affordable housing program. The City did not establish its own
housing authority nor has it been part of a regional housing authority. The City did not
establish a Redevelopment Agency, which would have allowed the City to receive
162
Recommended Affordable Housing Services Provider
February 16, 2021
Page 2 of 8
Property Tax Increment revenues generated by increases in property tax revenues within
each redevelopment project area. Such Property Tax Increment included a required
"20% Set -Aside" that was required to be used by cities to produce and manage local
affordable housing units. Through the production of such affordable housing units, many
California cities were able to comply with their local Regional Housing Needs Allocation
(RHNA) goals.
Park Vista Senior Housing Development
In the late 1980s, the City used General Fund dollars to acquire and construct the 97-unit
Park Vista senior housing development located at 615 East Holly Avenue next to
Recreation Park. This property is owned by the City and managed by a private property
management company. City staff is compiling the original acquisition documents and City
Council actions related to this project to determine what income and affordability controls
were placed on this development.
Commitment to Establish a City Affordable Housing Program March 2020
In 2016, City Council approved a residential development (24 single-family units and 34
multi -family units) at the former Imperial Street School located at 540 East Imperial
Avenue. Subsequent to this approval, there were several meetings to discuss the number
of multi -family units that might be dedicated as "affordable units". On Mach 17, 2020, City
Council amended the project's Specific Plan to allow the developer (DR Horton) to pay
an "in -lieu" fee of $5.3 million to the City in place of dedicating and/or producing future
affordable housing units.
Before looking to spend any of the $5.3 million, the City established an Affordable Housing
Fund and the money has remained in this fund. In order to manage this fund and pursue
future development of affordable housing units, the day-to-day oversight of the City's
housing operations was reassigned from the former Recreation and Park Department to
the reconfigured Development Services Department. This reorganization was formally
established with the adoption of the FY 2020-2021 Citywide Budget and became effective
on October 1, 2020.
Affordable Housina Services Provider Reauest for Qualifications [RFQ
On June 16, 2020, City Council authorized staff to prepare a RFQ to obtain background
information from firms interested in serving as the City's Affordable Housing Services
Provider to assist in the development and management of affordable housing units and
programs. Staff developed the attached comprehensive RFQ (Exhibit D) which was
released on September 8, 2020 with a submittal deadline of November 9, 2020. Copies
of the RFQ were distributed to several dozen firms and were posted on a variety of
websites and social media platforms. As noted in the RFQ, and explained when asked
by potential submitters, it was made clear that the City was interested in firms with a
proven track record of providing comprehensive affordable housing services, including
the following:
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+ Strong track record of producing and managing affordable housing units.
• Strong history of preserving and protecting existing affordable housing stock, with
minimal displacement of existing tenants.
■ Successful history of obtaining and leveraging affordable housing funding from a
variety of outside sources, including: Federal, State, and regional governments,
Federal/State low income housing tax credits, non -profits, private companies,
special interest groups, etc.
• Demonstrated ability to produce and construct affordable housing units on time
and within budget.
• Recurring history of rehabilitating existing housing units which were converted to
affordable housing units.
• Proven history of on -site management of affordable housing units, civic
engagement, provision of an array of residential services to tenants, exemplary
customer service, and minimal complaints to the local city's governing board and
administrative staff from affordable housing tenants.
Ability to provide regular updates to the City and maintain a willingness to be "on
call" to the City when needed.
• Successful history of assisting local cities adhere to, or at least make notable
progress in complying with, their local Regional Housing Needs Assessment
(RHNA) goals and requirements.
As noted in the RFQ, the selected Affordable Housing Services Provider may be provided
an opportunity to purchase and/or manage the Park Vista property. If the firm is interested
in this option, this will be discussed at a later date and will be subject to City Council
approval.
DISCUSSION:
13 Affordable Housing Services Provider Response
A total of 13 responses to the RFQ were received from the following firms (listed in
alphabetical order with each firm's headquarters location):
1. Abode Communities (Los Angeles, California)
2. Anton Development (Walnut Creek, California)
3. Century Housing Corporation (Culver City, California)
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Recommended Affordable Housing Services Provider
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4. Chelsea Investment Corporation (Carlsbad, California)
5. Community Corporation of Santa Monica (Santa Monica, California)
6. Nextgen Apartments et.al. (El Segundo and other locations, California)
7. Jamboree Corporation (Irvine, California)
8. Many Mansions (Thousand Oaks, California)
9. McCormack Baron Salazar (Los Angeles, California)
10. National Communities Renaissance (Rancho Cucamonga, California)
11. Related California (Los Angeles, California)
12. Thomas Safran & Associates (TSA) Housing (Los Angeles, California)
13. Venice Community Housing Corporation (Los Angeles, California)
Affordable Housinq Services Provider Review Criteria & Process
In addition to using the review criteria listed above, all 13 respondents were evaluated via
the following three broad categories:
• Strength and experience of the respondent's team.
• Team's capability to manage and operate the City's Affordable Housing Program.
■ Capacity to create new affordable housing while meeting the City's RHNA goals.
The following point system was assigned to the specific evaluation criteria:
Criteria Maximum Points
Development Experience 40
Financial Capability 30
Management & Administration Experience 30
Total 100
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The review and selection process consisted of two phases. The first phase identified a
short list of five respondents rated highest within the three broad evaluation categories.
The second phase consisted of interviews of the top five respondents with the City's
evaluation committee, which consisted of the following individuals: City Development
Services Director, City Principal Planner, City Land Use Planning Consultant, Keyser -
Marston Housing Consultant, and City Community Development Block Grant (CDBG)
Consultant.
During the second week of December 2020, interviews were conducted with
representatives of the top five firms. Each firm demonstrated experience in developing,
managing, and operating quality affordable housing projects and programs. Each firm
had experience obtaining outside affordable housing assistance funding, successful
community engagement, monitoring and compliance with Federal, State, and local
affordable housing occupancy and reporting requirements.
Top Three Affordable Housing Service Providers
The evaluation committee then narrowed the list of five firms to what it considered the
three most qualified firms, as follows:
1. Many Mansions
2. Jamboree Corporation
3. Abode Communities
Exhibits A, B, and C contain a copy of each firm's RFQ response. All three firms are well -
qualified with proven track records. However, the evaluation team concluded that one
firm rated higher for this purpose than the other two firms.
Top Rated Affordable Housing Service Provider — Many Mansions
One firm, Many Mansions, stood out and most closely aligned with each of the City's
stated affordable housing service provider goals and objectives. This firm ranked highest
overall in both the interview and written responses to the RFQ. It scored very high in all
phases of affordable housing development and management; from the start of the
process (obtaining funding for a project) to developing/constructing/rehabilitating a
housing project to managing a property (including being responsive to tenant needs) to
working closely and effectively with the local government. Many Mansions also
demonstrated significant experience in assisting jurisdictions manage a wide array of
affordable housing projects and programs, including unique special needs populations.
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Recommended Affordable Housing Services Provider
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With over 40 years of expanding experience in affordable housing development and
management, Many Mansions' mission most closely aligns with the City's affordable
housing program goals. Specifically, this firm identifies, builds, and manages quality,
environmentally sustainable affordable housing developments that assist communities to
meet the needs of low and moderate income residents while at the same time helping
each of their cities adhere to their RHNA goals and targets.
Many Mansions is vertically integrated with a team of seasoned professionals that include
architects, engineers, financial specialists, construction managers, property managers,
and service providers. Many Mansions maintains solid financial fluidity to successfully
leverage a variety of funding sources to produce successful and sustainable affordable
housing projects. Many Mansions has completed numerous affordable housing projects
relevant to El Segundo's size, needs, and characteristics.
Many Mansions staff have demonstrated experience in working with small, urban parcel
types, adaptive -reuse housing, and acquisition/rehabilitation projects. This firm works
very well with cities to develop specific plans and housing policies. Its portfolio includes
the preservation of "at -risk" housing through re -syndication, renovation, and affordability
extension. Many Mansions representatives and employees routinely engage with local
community leaders and residents to understand and foster long-standing community
relationships. This firm possesses the immediate capacity to administer, manage, and
monitor affordable housing units. Throughout the evaluation process, Many Mansions
proved to be most qualified to meet the unique needs of the City of El Segundo's
affordable housing challenges.
For example, Many Mansions is firmly committed to do the following:
• Develop a formal strategic plan for producing affordable housing units to assist the
City in fulfilling its RHNA goals and targets.
• Identify properties with potential for affordable housing development; and existing
rental projects that may be suitable for acquisition, rehabilitation, and conversion
to deed -restricted affordable housing units.
• Assist in ongoing administration and management of affordable and/or senior
housing units in El Segundo.
Many Mansions currently owns 20 properties with over 600 units and also serves as a
third -party manager of an additional seven properties with another 205 units, including a
57-unit senior housing complex. Many Mansions has a growing presence in both Ventura
County and Los Angeles County, with existing projects in Downtown Los Angeles and
new projects under construction in Lake View Terrace, and future projects in Sun Valley
and Boyle Heights.
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Many Mansions works in partnership with El Segundo -based RRM Design Group to help
design its construction projects. RRM Design Group has a field office in El Segundo and
the team in this office will be assigned to all projects in El Segundo. In fact, it was RRM's
El Segundo office staff that first made Many Mansions aware of the El Segundo Affordable
Housing Services Provider RFQ.
As a growing and expanding affordable housing services provider, Many Mansions has a
field office in Downtown Los Angeles (811 Wilshire Blvd) and would like to develop a field
office in El Segundo to expand its presence into the South Bay. Many Mansions
conveyed that would like to grow its footprint in the community via an office located here.
As a policy, Many Mansions has committed to maintaining on -site staff for each affordable
housing project with 16 or more units that it develops and manages within the City.
Property management and tenant services for smaller projects will be consolidated to
maximize efficiency. It is clear that Many Mansions wants to not just do business with the
City of El Segundo. It wants to build on its existing relationship with El Segundo -based
RRM Design Group and become part of the community for the long haul.
CONCLUSION & NEXT STEPS:
Staff recommends that City Council authorize the City Manager to enter into an Exclusive
Negotiating Agreement (ENA) with Many Mansions to serve as City's Affordable Housing
Services Provider to develop and manage affordable housing units, services, and
programs. In addition, this firm will play a key role in helping the City comply with its
RNHA requirements. If negotiations prove successful with Many Mansions, a
development and administrative services agreement will be brought before City Council
to review and approve by May 18, 2021. Once approved, work will commence
immediately. Staff anticipates working with the new Affordable Housing Services Provider
to present a proposed Affordable Housing Strategic Plan to City Council no later than
December 7, 2021 (the last scheduled City Council meeting in 2021).
ENVIRONMENTAL CONSIDERATION:
This action is exempt from CEQA pursuant to CEQA Guidelines §15061(b)(3) which is
the general rule that CEQA applies only to projects which have the potential for causing
a significant effect on the environment and CEQA does not apply where it can be seen
with certainty that there is no possibility that the activity may have a significant effect on
the environment.
.:
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February 16, 2021
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CITY STRATEGIC PLAN COMPLIANCE:
Goal 5: Champion Economic Development and Fiscal Sustainability
Objective A: El Segundo promotes economic growth and vitality for business and the
community.
Activity 5: Identify areas within the community that are appropriate for housing.
PREPARED BY: Tina Gall, CDBG Consultant
REVIEWED BY: Sam Lee, Director of Development Services
APPROVED BY: Scott Mitnick, City Manager
ATTACHED SUPPORTING DOCUMENTS:
1. Many Mansions RFQ Response
2. Jamboree RFQ Response
3. Abode RFQ Response
4. El Segundo Affordable Housing Services Provider Request for Qualifications (RFQ)
File: SNAHousing Services Provider Staff Report February 16, 2021 — Word
•O
Attachment A
Many Mansions RFQ Response
170
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Contact: Alex Russell (805) 496-4948 ext. 220 / alex@manymansions.org
1259 E. Thousand Oaks Boulevard, Thousand Oaks, California 91362
SECTION A I Cover Sheet
SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
TABLE OF CONTENTS
Page Section Name
01 A Cover Sheet
02 B Table of Contents
03 C Cover Letter
05 D Housing Services Provider
15 E Development and Management Experience
28 F Financial Capability
30 G Potential Conflicts of Interest
e hnr
La Guadalupe, Boyle Heights, California
GRAPHICS & PHOTOGRAPHS:
This document features images of Many Mansions and its partners' projects; the graphics and photos of which are owned and
copyrighted by our respective firms. There are no stock photos or images of any kind used in this proposal.
ABOUT MANY MANSIONS:
12S9 E.Thousand Oaks Blvd.Thousand Oaks, CA 91362
p: (805) 496-4948 • f (80S) 497-1305 • manymonsions.org
California Non -Profit Corporation • Authorized Signer, Rick Schroeder, President
The written and graphic materials contained in this proposal are the exclusive property of Many Mansions
The unauthorized use of any portion of these text or graphic materials without Many Mansions prior written consent is expressly
prohibited.' 2020 Many Mansions
SECTION B I Table of Contents I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 2
172
November 9, 2020
RE: CITY OF EL SEGUNDO REQUEST FOR
QUALIFICATIONS AFFORDABLE HOUSING
Paul Samaras,AlCP
DEVELOPMENT AND ADMINISTRATIVE SERVICES
Principal Planner
City of El Segundo
Mr. Samaras,
350 Main Street
El Segundo, CA 90245
Many Mansions is pleased to provide you with a formal response to this
psamaras@elsegundo.org
RFQ, outlining our experience, qualifications, and capacity to meet the
City's affordable housing needs. For the past 41 years, Many Mansions has
worked exclusively in southern California and has extensive experience
afv
working in similar jurisdictions. We have experience in coastal communities
Moan�ton
and recently completed a 40-unit veteran's development near the beach
in Oxnard. We also have extensive experience in affluent communities,
1259 E.Thousand Oaks Blvd.
near "build -out", and that have limited development opportunities (e.g.
Thousand Oaks, CA 91362
Thousand Oaks).
p: (805) 496-4948
f (805) 497-1305
These experiences have allowed us to become creative with underutilized
Los Angeles Field Office
land (e.g. helped Moorpark identify 4 small parcels that were undevelopable
811 Wilshire Blvd Ste. 1727
on their own but are feasible using a scattered site model), adaptive -reuse
Los Angeles, CA 90017
(motel) conversions, acquisition/rehabilitation of existing properties (e.g.
we recently helped Thousand Oaks preserve an "at -risk" development),
www.manymansions.org
and mixed -use projects with ground floor retail.
"We have extensive Beyond building, we have substantial community outreach experience. We
experience working helped develop specific plans in several communities, residential overlays
with cities to meet such as the All Affordable Housing Opportunity Zone in Oxnard, a municipal
their affordable code amendment in Santa Paula to allow residential on underutilized
housing needs." commercial property, and enhanced density bonus programs. As such, we
are known for being a strong community partner with innovative ideas.
In addition, Many Mansions has the financial capacity to meet the City's
needs. We have cash on -hand for predevelopment expenses, a $1 million
line of credit, and a successful track record of securing predevelopment/
acquisition loans to purchase properties. We have successfully secured
over $300 million in local, state, and federal affordable housing financing.
In fact, we were the only developer to receive three funding awards (two
in Los Angeles County) from the State of California under its recent MHP
NOFA. This has translated into a strong pipeline of ten projects (two
under construction) to build 600 units of affordable housing over the next
four years (exceeds the City's RHNA goals).
SECTION C I Cover Letter I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
3
173
Many Mansions has its own property management division and owns or
manages 20 properties with over 600 units. We have also third -party
managed seven properties with 205 units for the Area Housing Authority
JV� rdnr�� of the County of Ventura, including a 57-unit senior complex. Additionally,
1 1 ) we provide "free" life -enriching services for our residents, including after -
school tutoring for the kids, college scholarships, food assistance, and
1259 E.Thousand Oaks Blvd. much more to help our residents be successful.
Thousand Oaks, CA 91362
p: (805) 496-4948
f (805) 497-1305 Over our long history, we have provided ongoing monitoring and
administration for countless local, state, and federal, agencies. We have
Los Angeles Field Office never had a major finding or violation and currently have no open regulatory
811 Wilshire Blvd Ste. 1727 issues. With government budgets cut, we have increasingly provided this
Los Angeles, CA 90017
service to our local partners.
www.manymonsions.org
As you can see, we are highly qualified to help the City exceed its
RHNA goal of 500 units (for those with special needs; our primary
focus). We will do so in a manner reflecting the City's five overarching
housing goals and agree to adhere to the minimum income and
affordability standards identified in this RFQ. If selected, we will
immediately work with the City on developing a strategic plan to meet
these goals, start identifying properties consistent with established criteria,
begin managing (and possibly acquire) Park Vista, and create policies/
procedures for the ongoing monitoring and administration of affordable
housing units produced in the City.
We are excited for this opportunity to partner with you to provide much
needed affordable housing for the community. If you have any questions
or need anything, please contact Alex Russell, Executive Vice President, at
alex@manymansions.org or call 805-496-4948 ext. 220.
Sincerely,
Rick Schroeder, President
Authorized Signer
Many Mansions
2020
DEVELOPER OF THE YEAR
Many Mansions
2020
BEYOND LA PROJECT OF THE YEAR
SCANPH Ormond Beach Villas
SmAt"m cawamda AMCMW of r n Profit tom : g
SECTION C I Cover Letter I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
174
4
"Now at 19, my first job is
working with a company that
has helped many families like
my own to be more successful
and get on the path to
greater things."
- AIM Perez
Many Mansions' Stories
oil
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7
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Hacienda De Feliz, Thousand Oaks, California
175
any
Mansion
HEADQUARTERS
1259 E. Thousand Oaks Blvd.
Thousand Oaks, CA 91362
p. (805) 496-4948 ext. 220
f (805) 497-1305
LOS ANGELES OFFICE
811 Wilshire Blvd. Suite 1727
Los Angeles, CA 90017
ORGANIZATION
California Non -Profit Corporation
501(c)(3) Tax -Exempt Organization
AUTHORIZED PARTY
Rick Schroeder, President
rick@manymansions.org
MISSION STATEMENT
Many Mansions develops and
provides quality affordable housing
and life -enriching services for low
income individuals and families in
Ventura and Los Angeles Counties,
with special focus on those of very low
income, who are formerly homeless,
seniors, veterans, or disabled.
VISION STATEMENT
We respect all human beings, and
strive to build a community that is
welcoming to all through continuous
outreach and involvement with
residents, community stakeholders,
and strategic partners. Everyone
should have the opportunity for quality
housing and life enriching services.
"We honor not only its award winning development this year,
but also the organization's commitment to excellence in services, education, and affordable housing development since 1979."
- Alan Greenlee, Executive Director, Southern California Association of Nonprofit Housing
LEAD ENTITY 1 Many Mansions
The successful implementation of affordable housing in the City of El Segundo demands
a team with extensive experience in project development, ownership, and property
management across a broad spectrum of populations and funding resources. Many
Mansions is one of the top nonprofit affordable housing developers, property managers,
and service providers in Ventura County. Many Mansions is also a leading provider of
permanent supportive housing for targeted populations, including seniors, persons with
physical or mental disabilities and veterans. Additionally, we have been aggressively
expanding our operations into Los Angeles County, and officially opened our downtown
Los Angeles field office in July of 2018, where we oversee multiple developments
throughout Los Angeles County. It is through this depth of experience that we believe
we are well suited to engage with the City in preserving existing affordable housing and
providing new construction opportunities throughout all of El Segundo.
We assemble the support of exceptionally talented and experienced team members
including architects, engineers, financial consultants, construction managers,
property managers, and service providers that contribute a vast amount of
experience completing affordable housing projects. We are confident that we can
produce housing that will be respondent to the local community of El Segundo,
including the bursting work force growth in need of local housing and the large
populace of locals who are entering into late adulthood. These populations have
different needs and we are adept at creating projects that are purpose-built for
targeted populations of a wide variety. It is through the efforts of our well-rounded
teams that we can guarantee the diversity in housing that the City of El Segundo is
searching to procure.
These projects will be informed of the challenges we may face with industrial site
cleanup, community engagement, and complex zoning and variance cases. Typically,
city-owned/identified affordable housing development parcels require a change in land
use or zoning variance, such as our project in Lake View Terrace, CA- Beyond the
legal challenges of zoning and variances, we have proven success in environmental
remediation and complex site topographies, such as petroleum contamination at our
development in Boyle Heights. We understand this is a complex process and we are
equipped to navigate these obstacles. We have been able to successfully implement
policies and procedures in other municipalities that we believe, when applied to El
Segundo, will help reduce the constraints faced when developing affordable housing.
Many Mansions has a long history in affordable housing dating back to 1979 when
community members of Thousand Oaks came together to assist those members of
the community who were becoming homeless or being forced to live in overcrowded,
run-down and crime -ridden housing. The founders of the organization included a
wide segment of the community: members of the faith community, social service
agencies, businesses, local government and concerned citizens.
While first establishing a rental -assistance program in 1982 called 'Adopt -A -Family, Many Mansions began to develop its own
affordable rental housing in the mid-1980s. Its first developed affordable housing property, schillo gardens, opened in 1988.
Affordable housing development accelerated in the late 1990's and has continued to the present
since 1998, Many Mansions has provided a variety of 'life -enriching services for both its adult and youth populations. At
its supportive housing properties, Many Mansions provides a variety of on -site services to its residents including case
management, job development, life skills and other services to promote self-sufficiency, independence and social integration.
For its youth, Many Mansions is working to 'break the cycle of poverty through its education and enrichment programs.
With a local waiting list of over 3,600 households, affordable housing development is Many Mansions' primary mission. It is
the developer for all of its properties and has considerable experience in obtaining the complicated financing necessary to
fund affordable housing development Many Mansions currently has over 600 units of affordable housing in its development
pipeline. We are eager to add the City of Ell Segundo's forthcoming RHNA production goals of 500 units to this ever
expanding growth.
For nearly 40 years, Many Mansions has provided well -managed, service enriched, affordable housing to low-income residents
of Ventura County and its surrounding communities. By providing affordable, decent housing and life -enriching services to
those most in need, Many Mansions aims to break the cycle of poverty. Many Mansions owns and/or manages 20 properties
in Ventura County with 600 units of affordable housing, serves approximately 1,550 adults and 425 children, and provides
on -site service programs that include job training, case management, homework tutoring, a career preparation program,
and much more. With over 200 units of special needs housing, Many Mansions is the leading provider of housing for the
homeless and disabled in Ventura County. We want to bring this diversity to the City of El Segundo and promote equal
housing opportunities including ownership and rental housing.
In 2017, Many Mansions entered into a partnership with LA Family Housing to pursue a land proposal opportunity with the
City of Los Angeles and succeeded in securing rights to develop property managed by the Housing and
Community Investment Department of the City of Los Angeles. since then, we have grown our Los Angeles presence
significantly, including the opening of a Los Angeles based field office in 2018. This office is centrally located in downtown Los
Angeles to facilitate our access to such departments as the Los Angeles Homeless services Authority located within
the same building as us at 811 Wilshire Blvd, HCIDLA, which is just a few blocks away, and also the Los
Angeles Department of Building and Safety, located just under a mile from our location. Currently, we have one
project under active construction in Lake View Terrace with two more set to start construction within the next
six months in Sun Valley and Boyle Heights. We continue to pursue and analyze additional opportunities
throughout both Counties in order to ensure a steady on -going stream of high quality affordable housing.
Our nonprofit mission, extensive and diversified experiences, and proven track record as a long-term developer, owner,
and operator come together to make us a well -round candidate in partnering with the City of El Segundo. Together, we will
develop a strategy for producing affordable housing units that will fulfill el segundo's Regional Housing Needs Assessment
goals; identify properties with the potential for affordable housing development through new construction and acquisition/
rehabilitation, and assist in the ongoing monitoring and administration of all affordable housing produced in Ell Segundo.
SECTION D I SOO FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
tt.LtA,)LvtLv
Rick Schroeder Alexander Russell Doug Menges Derrick Wada
President Lead Project Vice -President Associate Director
Manager of Real Estate of Real Estate
Mosun Mah Rod Thompson, Jr. Rlchard Bradley
Project Manager Senior Vice -President of
Project Manager Property Management
DESIGN FIRM CONSULTANT I RRM Design Group
Although this RFP does not call for design services, should we have the honor of being selected, we felt
it was important to feature our relationship with our trusted design firm consultant, RRM design group.
We have worked with RRM architects on three separate developments over the last three years and
continue to consider them one of our top choices in architecture services for the following reasons:
1) They are a full -service provider that provides a wide range of services under one roof including
entitlement services, site design, engineering, landscape, and interior design work.
2) They produce excellent quality not only in terms of building design but in the quality of design drawings
to be reviewed at the plan check stage.
3) They have proven to be excellent communicators and have shown a willingness to listen to both the
developers needs and City staff recommendations and requirements.
4) They have shown themselves adept at balancing design and cost considerations, especially given the
pressure to produce designs that match the look and feel of the community while understanding the cost
dynamics of building multifamily rental affordable housing.
Also important to note, RRM has a field office advantagfously located in the City of Ei Segundo.
FIRM INFORMATION:
RRM design group is a California s corporation and I= employee -owned with locations in Santa Barbara,
San Juan Capistrano, San Luis Obispo, San Leandro, and a field office in El Segundo.
p: (805) 963-8283 f: (805) 963-8184 www.rrmdesign.com
4 SECTION D I I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
Financial Consultant Firm
California Housing Partnership Corporation
CHPC was created by the state legislature in 1988 as a private nonprofit
501(c)(3) public benefit corporation.The governor and respective leaders
of the legislative bodies appoint the eight board of directors based on their
professional qualifications and interests. CHPC is recognized nationally as a
leader in preserving at -risk subsidized apartments and in the financial
structuring of Low -Income Housing Tax Credit and bond transactions.
CHPC's focus is on improving the housing choices of California
households earning less than 50% of the area median income, especially
those earning less than 30%. CHPC's areas of expertise include:
• Affordable housing finance, supportive housing multifamily financial
consulting, and syndication of low-income housing tax credits
• Policy and lobbying
• Public -private partnerships technical assistance to government housing
agencies
• Program evaluations
• Training in affordable housing development and multifamily affordable
housing finance
• Preservation of at -risk affordable housing and preservation of federally
subsidized rental apartments
CHPC has provided financial consulting services on hundreds of multifamily
transactions totaling more than 50,000 apartments. Our services
include advising on financial structures to maximize equity and bond
or loan proceeds raised, negotiation with equity investors, lenders, and
underwriters, preparation of financial projections, and assistance in
obtaining funding from competitive programs.
Typical Services Provided include:
• Low -Income Housing Tax Credits (LIHTC)
• Tax Exempt Mortgage Revenue Bonds
• California Housing Finance Agency (CaIHFA)
• California Housing and Community Development Multifamily Housing
Program (MHP)
• The Federal Home Loan Bank's Affordable Housing Program (AHP)
• U.S. Department of Housing and Urban Development (HUD)
• Mental Health Services Act (MHSA) Funds (Administered by CaIHFA)
Calirnmla t�
Housing
Partnership
Corporation
LOCATIONS
600Wilshire Blvd., Suite 890
Los Angeles, CA 90017
p: (213) 892-8 7 75
369 Pine St, Ste. 300
Son Francisco, CA 94104
p: (4I5) 433-6804
5325 Elkhorn Blvd.
P.O. Box 8132
Sacramento, CA 95842
p: (916) 683-1 I80
MISSION
CHPC's mission is to assist
nonprofit and government
housing agencies to create and
preserve affordable homes for
lower -income households, while
providing leadership on housing
preservation policy and funding.
SECTION D I Housing Services Provider I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
178
8
MANY MANSIONS TEAM SUMMARY
RICK SCHROEDER, President
Rick has served as the President of Many Mansions for 19 years as the overall leader for the multiple departments within the
organization including Property Management, Supportive Services, Resource Development, Finance and Administration,
and Real Estate. Through the use of a strategic plan, Rick ensures the long-term objectives of the organization are at the
forefront of every effort.
ALEXANDER RUSSELL, Executive Vice President
LEAD PROJECT MANAGER
The lead Project Manager representing Many Mansions will be Alexander Russell, Executive Vice President. He has been
with Many Mansions for more than 14 years. Alexander sources and analyzes development and business opportunities.
Additionally, he provides overarching guidance and support to the entire real estate team and ensures interdepartmental
coordination with property management and supportive services teams.
DOUG MENGES, Vice President of Real Estate
Doug Menges, Vice President of Real Estate, has been with Many Mansions for over 6 years. Doug manages the on -going
pipeline of projects and oversees each individual project team. Doug coordinates the overall efforts of the team and ensures
timely movement toward production and financial goals for the real estate team.
DERRICK WADA, Associate Director of Real Estate
Derrick Wada, Associate Director of Real Estate, has been with Many Mansions for over 6 years and provides project
management support to all project teams. derrick ensures consistent work flow of day-to-day operations and provides
quality assurance for funding application submittals and other complex housing development components.
ROD THOMPSON, JR, Senior Project Manager
Rod Thompson Jr., senior Project Manager, has been with Many Mansions for over 4 years. Rod is involved in the day-to-
day operations of the Los Angeles Field Office and supervises the project life cycle and budget on our active projects in
the Los Angeles market.
MOSUN MAH, Project Manager
Mosun Mah, Project Manager, is approaching 2 years with Many Mansions. Mosun provides project management support in the
Los Angeles field office and assists with the project life cycle and budget management.
RICHARD BRADLEY, Vice President of Property Management
Richard Bradley has been with Many Mansions for over 3 years. In Richard's role as vice President of Property Management,
he oversees our existing portfolio of affordable housing developments. He ensures the physical integrity and upkeep of these
developments. He oversees all compliance related submittals and financial audits. Richard manages a diverse team of regional
managers, property managers, and maintenance technicians throughout the day-to-day operations of each asset.
SECTION D I Housing Services Provider I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
179
and
Manion
19 Years of
Experience
RICK SCHROEDER I JDA
President
Rick Schroeder is President of Many Mansions and an attorney licensed to practice law
in California and Minnesota. Prior to becoming Executive Director, he had a private law
practice, specializing in real estate, litigation, and bankruptcy. Schroeder is passionate
about affordable housing, especially about supportive housing —housing those members
in our community who are currently homeless or who have a disability. Schroeder, father
of a disabled daughter, became interested in Many Mansions in the 1990s. He wanted to
use his skills as an attorney, with a background in finance and real estate development,
to help those in the community most in need. He was fortunate to be able to lead Many
Mansions for a number of years while on its Board of Directors. However, he wanted to
do more. In 2002, he gave up his law practice and became the organization's executive
Director (President). Over the next 19 years he led the organization as it continued
to develop new affordable housing, managed the housing, and provided `life -enriching'
services for its residents. guiding the organization in developing a new strategic Plan,
the organization will seek to expand its housing throughout Ventura County and will
continue to specialize in supportive housing for those who are homeless, who are
veterans, and who are seniors.
EDUCATION
• Bachelor of Business Administration,
Finance and Real Estate/Urban Planning
University of Wisconsin, Madison, WI
• Juris Doctorate, UCLA School of Law, Los
Angeles, CA
Summit View Apartments, Lake View Terrace, CA
ACCREDITATIONS
LICENSES • AFFILIATIONS
• State Bar of California, #126314
• State Bar of Minnesota, #020870X
• California Real Estate Broker's License,
01999799
• California Real Estate Corporate Officer,
2003927
SECTION D I Housing Services Provider I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 10
180
14 Years of
Experience
an
Mandsion
6 Years of
Experience
ALEXANDER RUSSELL I MBA
Executive Vice President
Alexander is the executive vice president at Many Mansions (a southern California -based
nonprofit affordable housing builder, property manager, and services provider) where
he assists the President in exercising broad management and supervisory responsibilities
over Many Mansions, its affiliates, properties, programs, administration, staffing,
contracts, finances, vendors, legal affairs, fundraising, property management, human
resources, and community and public relations. In addition, he directly oversees the
Real Estate Division and the Finance & Administration Division, where he is responsible
for all affordable housing development, asset management, finance, information
technology, administration, and business development. He has successfully secured over
$200 million in private, local, state, and federal financing for affordable housing. He is
responsible for increasing the number of Many Mansions' housing units by more than
50 percent, substantially expanding their geographic footprint, and serving several new
populations. His team is working on a ten affordable housing projects at various stages of
development, totaling over 600 new construction units (will nearly double the existing
portfolio) plus the renovation of about 100 units of affordable housing.
EDUCATION
• Master of Business Administration,
Marketing, CA Luthern University
• Bachelor of Science, Biological Sciences,
University of California, Irvine, CA
• Ross Program, Real Estate,
University of Southern California
ACCREDITATIONS -
LICENSES • AFFILIATIONS
• California Real Estate Broker, 01856629
• California Housing Consortium,
Member, Board of Governors
• Southern California Association of
Non -Profit Housing, Member and past
President of the Board of Directors
• Housing Trust Fund of Ventura County, VP
and past President of the Board of Directors
DOUG MENGES I MBA
Vice President, Real Estate Division
Responsible for all phases of real estate development including site selection, financial
modeling, entitlement, design, government and community relations, and construction.
Currently working on multiple projects in both acquisition/rehab and new construction.
Work with lenders, investors and legal consultants in all phases of development. Manage
construction from negotiation with general contractors and architect through to
completions and lease -up.
EDUCATION
• Master of Business Administration,
Harvard University, Boston, MA
• Bachelor of Economics, University of
Pennsylvania, Philadelphia, PA
ACCREDITATIONS -
LICENSES • AFFILIATIONS
• LISC Advanced Housing Development
Training Institute
• USC Ross Minority Program Real Estate
SECTION D I Housing Services Provider I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 11
181
8 Years of
Experience
5 Years of
Experience
DERRICK WADA
Associate Director of Real Estate Development
Identify and assess the feasibility of new affordable housing projects; Assemble the
project team, including design, engineering, legal and other professionals and consultants;
Work with lenders, investors, title officers, attorneys, and other consultants during all
phases of the development; Meeting and conveying information to community groups
and residents, city staff, and any other interested parties regarding Many Mansions,
housing development and proposed projects; Assist the Associate Directors in training
and development of other Department staff members Coordinated consultants, lenders
and attorneys to ensure projects were built on time and on budget, while avoiding
any litigious circumstances and meeting or advancing financial deadlines and goals; and
Collaborate with lenders and other Many Mansions Divisions and staff to transition
from construction to property operations.
EDUCATION
• Bachelor of Science, Landscape
Architecture, California Polytechnic
University, Pomona, CA
ACCREDITATIONS -
LICENSES • AFFILIATIONS
• LISC Advanced Housing Development
Training Institute
• California Real Estate Salesperson License
(#01944272)
• Notary Public (California)
ROD THOMPSON JR I MFA
Senior Project Manager
Development oversight from financial feasibility and RFP/RFQ stages through Placed in
Service/8609. Successful funding application submissions for HACLA PBV, AHACV PBV,
VASH, AHP, HOME, HHH, VHHP, Tax Credits - Competitive and Non -Competitive.
Construction oversight and financing draw -downs. Multiple escrow closings and permanent
} conversions. Community outreach and City Council advocacy. Multi -department
coordination with Asset, Adult & Children Services, and Property Management.
EDUCATION
• Master of Fine Arts, Creative Writing,
Full Sail University
• Bachelor of Arts, International Studies,
International Business Relations Minor,
University of South Alabama
ACCREDITATIONS -
LICENSES • AFFILIATIONS
• California Real Estate Salesperson
License (#02062558)
• LISC Advanced Housing Development
Training Institute
• SCANPH, Housing California
• 13 Grace Hill Certifications
SECTION D I Housing Services Provider I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
NA
12
M�nSton
2 Years of
Experience
1A�n�ton
23 Years of
Experience
MOSUN MAH
Project Manager
Assist senior Project Manager in all aspects in the financing, predevelopment and
construction of three permanent supportive housing projects in the city and county
of Los Angeles: La guadalupe — New Construction, Mixed -use, 44-units; sun King
Apartments — New Construction, Residential, 26-units; summit view Apartments —
New Construction, Residential, 49-units. Assist in plan check and permitting, Assist
in preparing funding applications, Prepare and coordinate construction draws, Prepare
RFPs, Manage vendors and partner relationships (i.e. design team, expediter, co -
developers), Present weekly progress updates to senior leadership.
EDUCATION ACCREDITATIONS -
• Bachelor ofArts, Mass Communications in LICENSES - AFFILIATIONS
English, University of California, Los Angles, CA • California Real Estate Salesperson, 02099664
• Certificate of Real Estate Investment, • UCLA ZIMAN LEVIN Center A f Affordable Housing
Harvard University Extension Development Program
RICHARD BRADLEY
Vice -President of Property Management
Richard oversees the Property Management Department and all of its assigned duties,
tasks and areas of responsibility including: the direct day-to-day property management
operations, including applicant processing, leasing, resident relations, vendors, maintenance,
janitorial, rent collection, contracts, collections, security deposits, move-ins/move-outs,
transfers, Fair Housing policies, procedures, procurement, inventory control, evictions,
etc.; day-to-day supervision of the Department's staff, including Regional Managers,
Community Managers and Maintenance Technicians (for a total of 25 staff members);
Human Resources' policies and procedures within the Department including hiring, training,
supervision, job assignments, compensation, discipline, employee relations, evaluations
and promotions; prepares and updates Strategic Plans, Property Management Contracts,
Property Management Plans, Resident selection Plans and Affirmative Marketing Plans;
participates in preparation and implementation of all property operating budgets, forecasts
and budget variance reports; provides monthly operating reports and analysis upon the
status, condition, operations and direction of the properties, including the staffing and
activities; develops and implements a Training Program for department staff, including
training on all aspects of property management and facilitates outside training; oversees all
aspects of federal, state and local regulatory compliance and reporting; oversees contract
bidding and oversight of capital improvements; and oversees advertising and managing a
central waiting list.
EDUCATION ACCREDITATIONS -
- Bachelor of Arts, English and History, LICENSES - AFFILIATIONS
University of Alabama • California Real Estate Broker, 2003927
• Affordable jrordable Certifications in TCS, COS,
CPO, RHM, and S.T.A.R.
SECTION D I Housing Services Provider I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 13
183
RRM DESIGN GROUP TEAM
Architect
RRM design group's Architecture brings a wealth of affordable, multifamily housing experience to the development team.
The architecture team will be led by Principal, Detty Peikert, Project Architect/Manager, Jolie Wah, and design director,
Gordon Brewer. As a multidisciplinary firm with collectively, 130 architecture, planning, civil, landscape, structural,
survey and transportation engineering professionals, RRM is able to collaborate on all fronts to develop a well -
coordinated product. The RRM design group has a commitment to California design with offices in San Luis Obispo,
Santa Barbara, El Segundo, San Juan Capistrano and San Leandro.
CREATING
ENVIRONMENTS
PEOPLE
ENJOY.
CREATING
ENVIRONMENTS
PEOPLE
ENJOY,
CREATING
ENVIRONMENTS
PEOPLE
ENJOY.
Detty Peikert, AIA, LEED AP BD+C
Detty heads the firm's Santa Barbara office and has been working in the field of architecture
for more than 30 years. Detty has extensive experience in developing affordable and market
rate housing throughout Southern California with a strong passion and commitment to
housing disadvantaged members of our communities. Having acted as a general Partner in a
number of development partnerships, this experience gives him a perspective and expertise
that significantly enhances the services he provides for his clients. His vast experience in
designing, developing, and building hundreds (thousands?) of affordable and market rate units
in Southern California has provided him with the opportunity to face and conquer almost
every conceivable challenge one can encounter in the complex field of housing
development. As founder of the Sustainability Project of Santa Barbara, Detty is committed to
the principles of sustainable design and green building.
Johe Wah, All
Jolie is a senior architect and project manager with RRM, Santa Barbara. With a strong sense
of design and enthusiasm for the design process, she also possesses project management
skills established through her 30+ years in the architecture field. Jolie has a diverse
background ranging from affordable multifamily housing, market rate apartment complexes,
affordable senior apartments, single-family residential, retail and hospitality projects. As
an executive board officer for the Santa Barbara Chapter of the AIA, Jolie is dedicated to
bringing architectural solutions to the greater community. Jolie is a former resident of the
South Bay and the prospect of providing much needed housing to the city of El Segundo and
its surrounding areas is both exciting and comforting.
Gordon Brewer, AIA, LEED AP
Gordon is RRM's Santa Barbara director of design, with more than 40 years of award -
winning experience designing complex multifamily residential, commercial, and institutional
projects. Gordon is deeply committed to ecological, innovative, and socially responsible
architecture. He believes that beautiful affordable projects instill feelings of dignity to their
inhabitants. Gordon enjoys the challenge to produce projects with design integrity, that
are harmonious to the neighborhood, but still meet the budget constraints of tax -credit
funding. His recent work to incorporate modular units within traditional and contextual
building designs is a testament to his design skill.
SECTION D I Housing Services Provider I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
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14
"We are so grateful at the
County (Ventura)for our
long partnership with Many
Manions, over 40years,
partnering in developing
affordable housingfor those
in need in our community."
- Mike Powers, CEO
County of Ventura
�a
As
Hillcrest Villas, Thousand Oaks, California
r_I
185
15
2020 Southern California Association of Nonprofit Housing Project of the Year
i
0
� I• I' � -
1
yk3
rl
an,g
JAan5ton
"This development was
chosen because it is
the first permanent
supportive housing
for Veterans
in Ventura County,"
Alan Greenlee,
Executive Director of SCANPH
OD � A ^N A NOTABLE INFO AND STATS:
i[,Y' J iJ Construction Duration: 14 Months Completed: September 2019
BEACH VILLAS Average Median Income Levels: 30%, 50916, and 60%
OXNARD, CA Property Management and Compliance: Many Mansions
Ormond Beach Villas is the first permanent housing project for veterans in Ventura County. The complex has 40 units with
15 one -bedroom, 20 two -bedroom, and 5 three -bedroom floor plans.
The Green -Point rated development was completed in September 2019 and includes supportive housing for homeless
veterans and affordable housing for low-income veterans and their families. The complex has a number of amenities and
a range of supportive services are offered on site provided by Many Mansions, LA Family Housing, and the Boys and Girls
Club of Greater Oxnard and Port Hueneme.
Our residents have access to a number of community amenities within walking distance from the complex, including:
Southwinds Park, Art Haycox Elementary School, Perkins/Hueneme Bus stop, and Clinicas Maravillo. The development is
also 1.5 miles from the Naval Construction Battalion Center in Port Hueneme.
SUPPORTIVE SERVICES AMENITIES
• Veteran Services provided by LA Family Housing • Community Room • Picnic/BBQ area
• Services Coordination provided by Many Mansions • On -Site Laundry • Memorial Garden
• Children Services provided by the Boys and Girls Club • Playground • Commemorative Flagpole
of Greater Oxnard and Port Hueneme • Public Art Mural • Manager's Office
FINANCING
• City of Oxnard • Century Housing • Affordable Housing Program
• County of Ventura • California Municipal Finance Authority • Oxnard Housing Authority
• MUFG Union Bank, N.A. • U.S. Bancorp Community Development Corporation
• The Home Depot Foundation • Veterans Housing and Homelessness Prevention Program
SECTION E I Developrrientand Mang9eitientExperieiice I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
i0
16
l 1'VansTton�
WALNUT G G 1 1[ LN T STREET NOTABLE INFO AND STATS:
1� r 1 Construction Duration. 17 Months Completed: September 2018
APARTMENTS Average Median Income Levels: 30%, 45%, 50%, and 60%
MOORPARK, CA Property Management and Compliance:
Area Housing Authority of the County of Ventura
The Walnut Street Aparetments is a 24-unit new construction affordable housing development located on land provided
by the City of Moorpark and the first joint venture between Many Mansions and the Area Housing Authority of the County
of Ventura. The complex has 8 three -bedroom units, 15 two -bedroom units, and 1 one -bedroom unit for the on -site
manager.
The property serves low-income and extremely low-income individuals and families and is conveniently located across the
street from City Hall, the public library, and a park. It is near Downtown Moorpark with access to local tranist, shops, and
restaurants.
SUPPORTIVE SERVICES
-Adult Services provided by LifeSTEPS
-Eduational Classes
-Health and Wellness
-Program and Activities Development Coordination
-Case Management and Crisis Intervention
-Information and Referral Services
-Mediation Services
FINANCING
• City of Moorpark
• MUFG Union Bank, N.A.
• County of Ventura
• Ventura County Housing Trust Fund
• Area Housing Authority of the County of Ventura
• Low -Income Housing Tax Credits (9%)
AMENITIES
• Community Room • On -Site Laundry
• Services Office • Covered Patio/BBO area
• Manager's Office • Exceeds Energy Standards
• Playground
%4 I
ti
1 Atl�l4iSy
A COLLABORATIVE COMMUNI IY
SECTION E I Developmentand Management Experience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
187
17
� 4 �
ky-
iwl
law0 a
MOUNTAIN
A ^ 1 1 �► T N ■ IE W NOTABLE INFO AND STATS:
1 V 1 LJ M Y I`'rl I V GConstruction Duration: 18 Months Started: October 2020
APARTMENTS Average Median Income Levels: 30% and 50%
FILLMORE, CA Property Management and Compliance: Many Mansions
Mountain View Apartments is a new construction 77-unit multifamily workforce -housing development in the City of Fillmore.
The unit mix will consist of 57 one -bedroom, 21 two -bedroom, and 19 three -bedroom units. The development will be a joint
venture between Many Mansions and the Area Housing Authority of the County of Ventura, and restricted to families earning
50% - 50% of the Area Median Income.
The development architecture is agrarian craftsman with a mix of colors and materials that were inspired by Fillmore's history
in rail and agriculture. The project will feature 42 townhome-style units with attached at -grade garages, and 55 flats and
walkup apartments. Parking for these 65 units will be at -grade surface parking located throughout the site.
Several off -site improvements and infrastructure improvements are committed as part of the development. This includes new
sidewalks and street improvements on Santa Clara St., landscaping and sound wall on Highway 126, and bike and pedestrian
paths connectivity to downtown Fillmore.
SUPPORTIVE SERVICES
• Services Coordination
• Health Care Services
• Case Management
• Children and Family
• Life and Job Skills
Supportive Programs
• Transportation Services
-Homework Club
• County of Ventura Library Services
-Career Preparation
FINANCING
• County of Ventura Community Development Block Grant
• Ventura County Housing Trust Fund Acquisition Loan
• Low -Income Housing Tax Credits (4%)
• Affordable Housing Sustainable Communities (AHSC)
• Area Housing Authority Loan
• Area Housing Authority Project Based Section 8 Vouchers
AMENITIES
• Community Room
• Playground
• Common Courtyards
• Bike and Pedestrian Features
• On -Site Laundry
• Managet's Office
SECTION E I Developmentand MatiagementEaperience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
18
SUMMIT
A■ IT VIE
/IEW NOTABLE INFO AND STATS:
J �JIYI FYI SYIL�MAR,�CYA Construction Duration: 21 Months* Started: January2020
Average Median Income Levels: 30 % and 50%
Property Management and Compliance: Many Mansions
Summit View Apartments is a joint venture between LA Family Housing and Many Mansions. The project is a new construction
development with 49 residential units, with 37 studios,11 one -bedrooms, and 1 two -bedroom. The proposed project will
consist of four buildings ranging from three to four stories, connected by walkways and interspersed with landscaped areas.
Tenants will consist of 24 formerly homeless and 24 chronically homeless and extremely -low income veterans, most of whom
have qualifying mental health diagnosis and/or co-occurring disorders.
Stylistically, the proposed architectural concept draws influence from the rustic California ranch style seen in and around
Lake View Terrace and Sylmar. Drawing upon traditional ranch style elements, such as long - low roof lines, simple rustic
detailing and strong connections of indoor and outdoor spaces, the development team wanted to blend these elements
together with a modern sensibility. Locally inspired materials of stucco, wood, concrete, metal and glass are composed in
clean and contemporary horizontal and vertical lines to help bring scale and definition to the project.
SUPPORTIVE SERVICES
• Case Management
• Veterans Specific
• Job & Life Skills Training
AMENITIES
• Community Room
• BBQ/Picnic Pavillion
• Computer Lab
• Manager/Services Office
• On -Site Laundry
• Rooftop Terrace
• Fitness Center
• Dog Park
• LEED Certified
FINANCING
• Low -Income Housing Tax Credits (4%) + Tax Exempt Bond • Community Development Commission of the County of
• Los Angeles Housing and Community Investment Department Los Angeles (LACDC) Affordable Housing Trust Fund
(HCID) Community Development Block Grant • LACDC Mental Health Housing Program (MHHP)
• Housing Authority of the City of Los Angeles (HACLA) Project • Proposition HHH
Based Section 8 VASH Vouchers
'Significant Hillside Topography and above -average off -site improvements contribute to the additional 6 months work
SECTION E I Development and Management Experience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
O
19
a
I
S
SCNILLG GARDEN'S NOTABLE INFO AND STATS:
Construction Duration: 11 Months Completed: May 2017
APARTMENTS Average Median Income Levels: 50% and 60%
THOUSAND OAKS, CA Property Management and Compliance: Many Mansions
Named after one of Many Mansions' founders, Frank Schillo, Schillo Gardens Apartments was the first property built and
operated by Many Mansions. Built in 1988 and rehabilitated in 2016, Schillo Gardens has 29 affordable units with 7 one -
bedroom, 16 two -bedroom, and 6 three -bedroom layouts serving low-income families and individuals. The rehabilitation
included accessibiity measures (such as communication features for residents with sensory disabilities and concrete
ramps), new roofs, solar panels for energy conservation, new windows and sliders, and high energy efficiency lighting
throughout.
The complex is near downtown Thousand Oaks, giving our residents access to community amenities within walking distance
from the complex, such as the Thousand Oaks Civic Arts Plaza, a local grocery store, and community parks.
SUPPORTIVE SERVICES FINANCING AMENITIES
• Food Assistance • Low -Income Housing Tax Credits (4%) • Community Garden
• Children's service programs offered at the • Conventional Loan • On -Site Laundry
nearby Hacienda de Feliz Community Room • Redevelopment Agency Loan (Thousand Oaks) • Playground
-Homework Club • Manager's Office
-Career Preparation
-Summer Camp
SECTION E I Developmentand ManagementExperience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
ME
20
DEVELOPMENT PIPELINE
Units
49 units
PopulationProject
Completion
4% Tax Credits, Tax Exempt Band, Proposition HHH, HACLA Prolect
Management
Additional
Summit View
(Lake View Terrace)
37 studios, I I one-
bedroom,
Homeless and disabled Veterans;
100% PBSB
30%, 50%
December 2021
Based Sectlon 8 Vouchers, Hame Depot Grant LACDA Mental Health
Housing Program, LACDR A�{ordebk Housing Trust Fund, HCIDLA
Man Mansions
Y
City -owned Land
I two -bedroom
Community evelapment B ack Grant
Mountain View
77 units
37 one -bedroom,
Families with I I units for homeless
and disabled households, 55 PBS8
30%, 50%
Spring 2022
4% Tax Credits, lox Exempt Band, AHACV Project Based Section 8
vouchers, Community Development Block Grant, HCD's Multifamily
Many Mansions
Helped City Meet Housing Element Compliance
(Fillmore)
21 two -bedroom,
units
Housing Program
19 three -bedroom
Sun Ki.�
26 units
12 one-bedroom,have
Homeless households, 100% PBSB;
Fall 2022Based
4% Tax Credits, Tax Exempt Baird, Proposition HHH, HACLA Project
f f
Ins, Program, CD
Many Mansions
Partnership with LAUSD
p
(Sun Na�,y)
I I two -bedroom,
�y
families with LAUSb students
30%
Supportive Housing Multifamily Housing Program
3 three -bedroom
I.o G:ruda!upe
44 units
19 studios, 19 one-
Homeless households; 100% PB58
30%, 50%
Earl 2023
y
4% Tax Creft. Tax Exempt Bond, Proposition HHH. HACLA Project
Based Sect)" 8 Voucbers, HCD Multifamily Housing Program
Many Mansions
City -owned Land; Mixed -use project
dioyle Neig its)
bedroom
6 two -bedroom
87 units
d0% for low- and very -low-income
Exempt Bond, Pro�iosition HHH. HACLA Project
High Density roject utilizing Affordable Hauling
Sustainable Cpimmunibes Funding Program Using
Central Terrace
86 one -bedroom,
jomiNes and 40% for homeless
households 35 P858
30%, 50%,
60%
2023
4% Tax Credits, Tax
Based Section 8 Vouchers, HCD Multi ar miiy Housing Program
Many Mansions
modularlshipping container bousrng to redure
(Oxnard)
I two -bedroom
jirxludrs
unit)
construction time
150 units
Phase I: 49 one-
Phase h Seniors 62+ years old
bedroom,
+ V, mentally disobfed and Y,,
Rancho Sierra
(Unincorporated
I two -bedroom
Phase It: 39 one-
disabled
Phase 11: Likely Yj L[ farnifies and
30%, 50%
Phase I: 2023
Phase II: 2024
4% Tax Credits Tax Exempt Bond, OHA Project Based Section 8
/
wuchers City of Oxnard in -Lieu Fee Funds, Affordable Housing and
Many Mansions
County -owned land
Ventura County)
bedroom,
T supportive housing rnduding 15
Phase Ill: 2024
Sustonable Communites, FHLB's Affordable Housing Program
I I two -bedroom
Phase Ill: 25 one-
TAY talcs]
Phase M. Low-income formworker
bedroom,
households
25 two -bedroom
60 units (+ 8 for
safe)
70% for low- and very low-incomeinnovative
8 Vouchers,
Area Housing
ublrcfprrvote partnership with City and
3 its to build a spectrum f from
2800 Barty Street
[CamorBfo
7 said os, 22 one-
bedroom,
fomiYies and
30% for homeless households;
30%, 50%,
60%
2024
9% Tax Credits, City of Camarillo Funds, AHACV Section
AHACV Funds
Authority of the
County o f Ventura
nun -pro
i f4ior the
extremely low nrame rents! housing far the disabled
16 two -bedroom,
100 PBSB
through (rest -time home buyers
15 three -bedroom
Aspire Apartments,
known
88 units
60% lo
j w- ow- and very low-income
families and
30%, 50%,
d% Tax Credits, Tax Exempt Band, tlHA Project Based Section 8
Man Mansions
Exploring the use o mechanized
p f parking.
formerly as
Meta feet
56 one -bedroom,
40% for homeless households
60%
2024
vouchers, Cityof Oxnard HOME Funds, H s No Place Like Home
Program, FHLB's Af fordable Housing Program
y
WILides a Pocket Park on Adjacent City -owned land
(Oxnard)
32 two -bedroom
(includes 35 P858 units)
Moorpark VI
58 units
13 one -bedroom.
60% for ktw- and very fow-Lncome
families and
30%, 50%,
TBD
9% Tax Credit, HCD's Na Place Like Home Program, County HOME/
Area Housing
Authority of the
Helped the city, identify 6 s[lk-up d sites build 6
(Moorpark)
27 two -bedroom,
40% for homeless households;
60%
CDBG, AHACV Section 8 Vouellers
Caunry of Ventura
en
duplexes and 46 garden walk-up apartments
16 three -bedroom
100 P&S8
Boys and. Girls Club
Head uarttrs
40 units
20 one -bedroom,
Homeless Fnmlliesr llomelcss
30%
TgD
4% Tax Credits. Tax Fxem r Bond, HACLA Project Based Sectie;; 8
Vouchers, FICA Multra y Hauling Program, CD Supportive Jiausr,r
-1,=rr 1.1 r 1 �,
Portne ble with lava' soirees nonprofit !li build
oj(artiable Eating an doedr underv�lired 7!radyriuit rs
I0 two-bedroomuec-L
Youtlr
grFj
MUltl amll HOUSiR Program
( y g g
[Pocolmo)
10 three -bedroom
Driver
(Agoura)
6, units
63 oric [icdraom,
temng
Y ned b the Ci
(p f Y Y)
TSD
T8D
TfC�L
Mo htr�-,o,;
D7
cit owned tnnd
Y
I two -bedroom
Potential Developments (No Site Control)
SECTION E I Deveiopment and X1angrementE.rperi,n I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
PROPERTY MANAGEMENT AND
AFFORDABILITY COMPLIANCE EXPERIENCE
Many Mansions has been serving the affordable
housing community for 40 years. Our ethos has always
been to build, buy, or renovate and then own in
perpetuity. We hold ourselves responsible for the long
term viability of the projects we invest in. Our decades
of experience have refined our talents and strengthened our
core abilities to manage and maintain a broad spectrum of
housing types. Our portfolio retains impeccable levels
of compliance and reporting that have ensured our
on -going success. Our compliance experience extends
from local City regulatory agreements to County, State, and
Federal levels of affordability and restrictive covenants.
Within our portfolio, one can find a wide range of affordability and targeted populations including: transition -aged youth,
veterans, and formerly homeless populations with incomes ranging from below 30% AMI to as high as 80% AMI. Multiple
layers of funding create a complex web of regulatory compliance requirements that involve meticulously detailed
reporting. We excel at all things related to income certification and tenant qualification reviews. Many Mansions goes
above and beyond to provide on -going training to the staff to ensure we are abreast of the latest developments and
changes in regulatory reporting and follow-through.
"Many Mansions provides high quality management services without losing sight of
the importance of being compassionate to our residents."
- Michael Nigh, Executive Director, Area Housing Authority of the County of Ventura
It is through this experience and proven record of highly regarded services that we have been able to expand our
property management services to include the third -party management of the housing stock for various agencies. One such
opportunity involved us taking interim control over the property operations for the Area Housing Authority of the
County of Ventura for some time. This opportunity put Many Mansions in the operational lead for seven additional
properties totaling 205 units, which included senior and disabled targeted populations such as the 57-unit Oak Creek
SeniorVillas.
This was a mutually beneficial opportunity as it allowed the AHACv time to build up their internal management capacity
so they could bring their entire portfolio in-house and it allowed Many Mansions to build-up its internal capacity to manage
properties for other owners. We are proud to have served the Area Housing Authority of the County of Ventura
during their time of need and we continue to offer and explore other ways to share our talents and experiences
with other organizations throughout both Ventura and Los Angeles Counties. Many Mansions will be the third -party
property manager for several of our joint venture partnerships, including a joint venture with LA Family Housing on
the 49-unit Summit View Apartments in Lake View Terrace (under construction) and the AHACV on the 77-unit
Mountain View Apartments in Fillmore (under construction)..
SECTION E I Developmentand Management Experience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 22
192
ASSET MANAGEMENT STRUCTURE AND STAFFING
The executive vice president of Many Mansions facilitates collaboration between real estate development,
property management, services, and asset management throughout the entire Many Mansions organization, including
its affiliates, properties, managed properties, programs, administration, staffing, contracts, finances, vendors, legal
affairs, fundraising, third -party property management, human resources, and community and public relations.
The vice president of property management oversees all property management operations of the organization and
exercises broad supervisory responsibilities over the division staff. The vice president works closely with the executive
vice president, is a spokesman and representative of the organization, and promotes its vision, mission, goals, and
objectives.
The regional managers, under the direction of the vice president of property management and the executive
vice president, and as consistent with the provisions contained in the California Real Estate Law & Subdivided Land Law,
oversee staff located at assigned communities managed by the organization.
The asset manager helps oversee all asset management functions including but not limited to regulatory compliance and
maximizing the performance and value of the Many Mansions (or its affiliates) portfolio of real estate assets that are
owned and/or managed through acquisitions, dispositions, or operations ("Portfolio"). The asset managers report
directly to the vice president of real estate.
Collectively, these positions oversee the direct day-to-day property management operations of all Many Mansions'
managed properties, including but not limited to, applicant processing, leasing, resident relations, vendors,
maintenance, janitorial, rent collection, contracts, collections, security deposits, move-in/move-out, transfers, Fair
Housing, policies, procedures, procurement, inventory control, evictions, monitoring overall financial performance,
regulatory compliance, and reporting.
Additionally, they oversee the direct day-to-day supervision of community staff, including but not limited to, its
,community managers, who live on -site, and maintenance staff assigned to each specific property; and provide monthly
operating reports and analysis upon the status, condition, operations, and direction of Many Mansions' managed
properties, including the department's staff and activities. They prepare and assist in the preparation of certain regulatory
reports, disclosures, audits, and financial statements, as required.
Over its 41-year history, Many Mansions has successfully provided ongoing monitoring and administration for countless
local, state, and federal agencies. We have never had a major finding or violation and currently have no open
regulatory issues. With government budget cuts, we have provided this service more frequently to our local partners.
This extensive regulatory compliance experience will serve the City of El Segundo well.
J
P r
Summit View Apartments, Lake View Terrace, CA
UP NEXT.
Portfolio of Mcmv Nionsions' Current Properties
SSECTION E I Developmentand ManagementG.cperience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 23
193
MANY MANSIONS CURRENT PROPERTY
MANAGEMENT PORTFOLIO
/ � / •
Schillo Gardens, 2849 Los Robles Rd.,
29
1/1/1988
Low and very low income households
Thousand Oaks, CA 91362
Shadow Hills Apartments, 227 E.
101
9/23/1992
Low and very low income households
Wilbur Rd., Thousand Oaks, CA 91362
Stoll House Apartments, 3155-3159 Los
11
1 / 1 / 1998
Extremely low and low income households
Robles Rd., Thousand Oaks, CA 91362
Villa Garcia, 1379-1419 Thousand Oaks
80
9/1/2000
Low and very low income households
Blvd., Thousand Oaks, CA 91362
Esse ff Village Apartments,
Extremely low income, disabled and homeless
1425 E. Thousand Oaks Blvd.,
51
11/1/2001
households
Thousand Oaks, CA 91362
Richmond Terrace, 760 Warwick Ave.,
27
2/1/2004
Homeless, disabled, and low income households
Thousand Oaks, CA 91362
Casa De Paz, 1010 Ashland Ave.
14
2/1/2005
Special Needs. Extremely low income, homeless
Simi Valley, CA 9306
and disabled households
Hacienda de Feliz, 2084-2096 Los
25
2/1/2005
Low and very low income individuals and families
Feliz Dr., Thousand Oaks, CA 91362
Bella Vista, 2011-2025 Los Feliz Dr.,
72
6/ 1 /2005
Low and very low income individuals and families
Thousand Oaks, CA 91362
La Rahada, 1036-1050Ashland Ave.,
8
10/1/2009
30% AMI, Extremely low income, chronically
Simi Valley, CA 93065
mentally disabled, homeless individuals
D Street, 110 North D St.,
8
7/1/2012
TAY. Emancipated youth with mental disability
Oxnard, CA 93030
between ages of 18-24.
Terry's Place, 352-354 E. Channel
2
12/I/2012
Households at or below 60%AMI
Islands Blvd., Oxnard, CA 93033
Hillcrest Villas, 2672-2736 E. Hillcrest
60
5/3/2013
Homeless persons with disability, extremely low income
Dr., Thousand Oaks, CA 91362
and homeless families, very low and low income families
Peppertree Apartments, 4214 E. Los
12
9/3/2014
Special Needs. Extremely low income, chronically
Angeles Ave., Simi Valley, CA 93063
homeless and disabled households.
Casa Garcia, Santa Paula, CA 93060
14
12/ 1 /2018
Workforce housing, very low income families
Ormond Beach Villas, 5527-5567 South
Chronically Homeless Veterans, Veterans with
40
9/29/2019
Disability, Low and very low income veteran
Saviers Rd., Oxnard, CA 93033
families
https://www.manymansions.orglrecent-property,..renovationsl
SECTION E I Developinentand Management Experience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 24
194
HIGH QUALITY PROPERTY MANAGEMENT
AND OPERATIONS
Summit View Apartments, Lake View Terrace, CA
High quality property management and operations
starts early on in the initial development of a
project, before any construction has occurred.
Coordination with Asset and Property
management services for feedback on design and
implementation of building facilities is key to
ensuring a thoughtful design that is cognitive of the
challenges the day-to-day operations will face. From
the asset and property management feedback we
are able to design workspaces that maximize
functionality and prevent challenges on the
backend when it comes time to operate the
development.
Property management and asset reviews of site security, community amenities, plumbing and mechanical specifications
and various other aspects of the development can guide and help define the future success of the project. It is at this
time too that contributions in cost control can be made and negotiation of high priority features to be implemented.
As the project moves toward lease -up, the role of the property management and asset team enlarges and
housing development begins to create the close-out binder for the operations and finance teams. These binders
consolidate the various financial and regulatory needs of the project, in addition to outlining the maintenance and
operations of the physical facilities.
The close-out manuals include affordability matrices, lender requirements, as -built plans, contractor information,
warranties, final specifications, permits, certificates of occupancy and approved property management and
services plans.This information transfers from the development project manager in a hand off to the operations teams.
Property management and asset management will help with lease -up, the creation of the transition plan, and the
permanent financing conversion.
Once turned over, the operations teams will begin to monitor the fiscal health of the property through budgeting
and forecasting while also managing reserve funds. They will monitor the physical health of the property by reviewing
work order trends, maintain inventory control, engage in preventative maintenance and capital plans, and develop
ongoing safety protocols.
The goals of the operations teams are to continue to source opportunities to improve on sustainability upgrades, maximize
net operating income, ensure on -going regulatory compliance, manage capital renovations and continually implement
strategies to maintain the property at peak efficiency and aesthetic beauty.
Many Mansions uses multiple layers of review and implements the latest trainings in order to provide our managers
the tools they need to meet the aforementioned goals and empower them to be great caretakers of our affordable
housing portfolios.
SECTION E I Developir)entand Management Experience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 25
195
SIMILAR PROJECT EXPERIENCE
Shadow Hills Apartments, Thousand Oaks, CA
Many Mansions exclusively works in southern California (Ventura and
Los Angeles counties) and has extensive experience working in similar
jurisdictions to El Segundo. We have experience in coastal communities
such as Oxnard, Port Hueneme, and Ventura. For example, we recently
completed a 40-unit veterans' development near the beach in Oxnard and
understand how to adjust for the high water table, salinity of the air, and
other unique coastal development challenges. We also have extensive
experience in affluent suburban communities such as Thousand Oaks, which
have a significant need to preserve its existing affordable housing stock (e.g.
we recently helped the City preserve an "at -risk" development by
resyndication, renovating, and extending the affordability for another 55
years), want a mix of densities, housing types, and populations served. We
even have experience with denser downtowns that prefer mixed -use
development and innovative ideas (e.g. factory -built housing and/or
mechanized parking).
We are currently stewards of 8 city -awned parcels in Ventura and Los Angeles counties. We helped the cities of Camarillo
and Moorpark identify 5 of the parcels. For example, the City of Moorpark had 4 small parcels that were undevelopable on
their own and we are using a scattered site land assemblage model with common acquisition, entitlement, financing,
construction, and management to build 6 duplexes on these small parcels along with 46 units on an inclusionary housing
site. All of these parcels are located within a one -mile radius of each other.
We also have significant experience in cities near "build -out" and that have limited development opportunities.
These experiences have allowed us to become creative with underutilized land, adaptive -reuse conversions, and
preservations through the acquisition/rehabilitation of existing properties. We have been able to implement the adaptive -
reuse of a motel through conversion into affordable rental housing and have built on heavily constrained infiil
developments in commercial/industrial areas. We are also about to start construction on a mixed -use project that will have
ground floor retail.
Beyond simply developing, Many Mansions has substantial community outreach experience regarding new
construction developments and community plans. Through numerous community meetings (even virtually), door-to-door
outreach (pre-COVID), and social media campaigns, we have successfully secured several general plan amendments and
zone changes over the years. We have contributed to the development of specific plans in both Thousand Oaks and Camarillo
and also advocated for a municipal code amendment in Santa Paula that now allows for residential construction on
underutilized commercial property.
We have worked with communities to implement residential overlays such as the All Affordable Housing Opportunity
Zone in Oxnard, CA. We have successfully implemented enhanced density bonus programs within the County of Ventura
and the County of Los Angeles, which allows us to capitalize on higher density thresholds when we develop 100%
affordable housing projects. As such, we are known for being a strong community partner with innovative ideas. In fact, we
presented ideas to build more affordable housing in Ventura County at the recent Ventura County Housing Conference.
Some ideas included the creation of a form -based downtown code (similar to the City of Oxnard's); allowing residential (or
mixed -use) development by right in commercial zones and on church -owned or surplus school -district property; creating
Transit Oriented Communities (TOC) Incentive Programs (similar to the City of LA); scattered site land assemblage to
make small infill sites feasible for development; and factory built (modular) housing to reduce the time it takes to build
affordable housing.
Based on the above outlined experiences and skill sets, we believe we are highly qualified to help the City of El Segundo
exceed the RHNA goal of approximately 500 units (for those with special needs including extremely low-income
households, seniors, military personnel, etc.) over the next eight -year cycle. Additionally, we will d❑ so in a manner
reflecting the City's five overarching housing goals. If selected, we will immediately work with the City on developing a
strategic plan to meet these goals, start identifying properties consistent with the established criteria, work on a plan to
begin managing (and possibly acquiring) the 97-unit Park Vista senior citizen housing project, and creating written
policies/procedures to assist with the ongoing monitoring and administration of affordable housing units produced in El
Segundo.
SECTION E I Developirientaird ManagenientExperience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 26
196
ADDITIONAL FIRM INFORMATION
Hillcrest Villas, Thousand Oaks, California
RR DESI N GROUP
MANY MANSIONS
Many Mansions is a California nonprofit corporation 501(3)
(c), and has been in operation for over 41 years. Our
principal office is located at 1259 E. Thousand Oaks Blvd. in
Thousand Oaks, California. Most of the services under
this proposal will be conducted from the Los Angeles field
office located in Downtown Los Angeles at 811 Wilshire Blvd.
Many Mansions is unique in that we provide "free" on -site
services to improve the quality of life for our residents and
help break the cycle of poverty. Examples include: individual
service plans focused on mental health, physical health,
employment and resume building, life skills, financial
counseling, and linkage to in home supportive care. For
children, we have tutoring, summer camp, and college
assistance/scholarships.
RRM design group has been in business for more than 45 years. They are a California s corporation and 100%
employee -owned. Their headquarters are located in san Luis Obispo, CA with other locations in santa Barbara, san Juan
Capistrato, San Leandro, and a field office in El Segundo. They anticipate the primary work for this project would take
place in the santa Barbara and el segundo field office locations.
RRM design group understands the critical nature of affordable housing budgets and complex requirements of the various
financing sources. They have decades of experience working with both 4% and 9% Low -Income Housing Tax Credit
projects, as well as market rate, multi -family housing and senior housing developments. Drawing on their past experience,
RRM offers both common sense and innovative solutions to solve problems, avoid pitfalls, and ensure that projects comply
with funding requirements. RRM looks at innovative and current solutions such as modular units and use of sustainable
materials to create spaces for people to enjoy and thrive. As a multi -discipline firm with collectively, more than 130 in-
house architecture, planning, civil engineering, landscape architecture, structural engineering, surveying, and transportation
engineering professionals, RRM is able to collaborate on all fronts to develop a well -coordinated product.
---------------
ITTa
Rancho Sierra Senior Supportive Housing, Camarillo, California (RRM and Many Mansions Project)
SECTION E I Development and Management Experience I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 27
197
Financial Narrative
Many Mansions has the experience, capacity, and ability to fully leverage the vast amount of local resources that come
with working in southern California for more than 40 years. We have successfully secured over $300 million in private,
local, state, and federal financing for affordable housing. For example, we were the only developer to receive three
funding awards (two for projects in LA County), a total of $24.2 million, from the State of California under its MHP
program during the last Notice of Funding Availability. In 2020, we also received an AHP award for our Central Terrace
project in Oxnard; a tax-exempt bond and 4% tax credit award for our sun King development in LA (100% of the
financing is secured and we will start construction early next year); we completed the permanent conversion for all
financing for our Ormond Beach villas development in Oxnard; we recently closed all of the construction financing (over
$40 million and includes tax-exempt bonds and 4% tax credits, state MHP, County CdBg, and project -based section 8)
to build 77-units in Fillmore; and based on preliminary scores and feedback from the State we should secure State MHP
funds for Rancho sierra in unincorporated ventura County in december as well as a tax-exempt bond and 4% tax credit
award for La guadalupe in Boyle Heights (which will be 100% of the financing at that time).
Additionally, our financial consultant, the California Housing Partnership
Corporation (CHPC), utilizes their extensive experience to underwrite the
proposed cost of development, sources of funding, and operating expenses. CHPC
has provided financial consulting services on hundreds of multifamily transactions
totaling more than 50,000 apartments. Their services include: advising on financial
structures to maximize equity and bond or loan proceeds raised, negotiation with
equity investors, lenders, and underwriters, preparation of financial projections,
and assistance in obtaining funding from competitive programs. CHPC's focus is on
improving the housing choices of California households earning less than 50% of
the area median income, especially those earning less than 30%.
It is also worth noting that, our development team has sufficient staffing and financial capacity to complete the proposed
services and help the City to develop at least 500 units of affordable housing (at the targeted income levels) within the
next eight -year Housing Element cycle. This is demonstrated by the fact that we currently have site control of about ten
affordable housing developments that will create almost 600 units of affordable housing over the next four years.
Our post -development operational management team (i.e. our property management, asset management, and services
departments) has and will continue to build the staffing and infrastructure capacity for effective, professional operation
and ongoing management of the completed affordable housing communities.
In addition, Many Mansions' strategic plan has already identified and is in the process of implementing a significant growth
and expansion strategy, especially in Los Angeles County. Therefore, this proposal fits squarely within our organizations
goals and objectives.
SECTION F I Financial Capability I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 28
•-P
Financial Contact Information
HCIDLA Proposition HHH
PERSON
Timothy Elliot
(213) 808-8596
LACDA AHTF + MHHP
Matt Lust
(626) 262-451 1
City of Los Angeles CDBG
Karen Banks
(213) 808-8540
Union Bank
Perica Bell
(310) 551-8964
Merritt Community Capital
David Dologite
(510) 906-0243
HCD: Multifamily Housing Program
Hector Leyva
(916) 263-4655
County of Ventura CDBG
Tracy McAulay
(805) 662-6792
Area Housing Authority of the County of Ventura
Michael Nigh
(805) 480-9991
US Bancorp
Jennifer Craig
(314) 662-7533
Enterprise Housing
Reagan Maechling
(410) 964-0552
City of Oxnard
Emilo Ramirez
(805) 385-8041
HCD: Veterans Housing & Homeless Prevention Program
Sabrina Sassman
(916) 263-2742
City of Thousand Oaks
Lynn Oshita
(805) 449-2391
City of Camarillo
Jaclyn Lee
(805) 383-5616
City of Moorpark
Jessica Sandifer
(805) 517-6225
Financial Statements
The financial statements have been submitted to the City Attorney under separate cover; and as stated in the RFQ, do not
count towards the page limit. Our most recent audit shows a "clean opinion" and a very healthy cash and cash equivalents
of more than $2,000,000. We just paid off our line of credit, have substantial cash on -hand for predevelopment and
program expansion, and have healthy reserves. Thus, we are in a strong financial position to meet the City's goals.
Financial Disclosures
Many Mansions has never defaulted on any of its obligations, been foreclosed upon, nor has a bankruptcy ever been filed.
There are no current legal or regulatory actions or investigations that may have a material impact on the financial
viability of the Developer.
Financial Legal History
There are currently no legal or regulatory actions or investigations involving fraud or corruption, or health and safety
where these are allegations of serious harm to employees, the public, or the environment. No legal or regulatory actions
or investigations involving fraud or corruption, or health and safety where there are allegations of serious harm to
employees, the public, or the environment have occurred within the past five years.
LIM
"When I first saw my unit, it didn't seem real.
1 couldn't believe they were giving me a place to live."
- Charles Simmons
Many Mansions' Stories
SECTION F I Financial Capability I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 29
199
November 9, 2020
Paul Somaras,AICP RE: CITY OF EL SEGUNDO REQUEST FOR QUALIFICATIONS
Principal Planner AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES
City of El Segundo
350 Main Street
Mr. Samaras,
El Segundo, CA 90245
psamoros@elsegundo.org
The purpose of this document is to disclose and certify the following information is true
and valid at the time of execution of this letter.
No member of the respondent's team staff, board of directors, or other governing body is
Tjafnj
or has been any of the following within the past two years:
A City of El Segundo employee or consultant;
12s9 E.Thousand oaks Blvd.
• A City of El Segundo Councilperson; or
Thousand Oaks, CA 91362 p:
A Board of Commission member who has direct influence on the use of public funding.
(805) 496-4948
f: (805) 497-1305
For any questions or clarifications, please do not hesitate to contact Alex Russell, executive
Vice President, at Alex@manymansions.org or by calling 805.496.4948 extension 220.
Los Angeles Field Office
81 I Wilshire Blvd. Ste. 1727
Los Angeles, CA 90017
Sincerely,
www.manymansions.org
Rick Schroeder, President
Many Mansions
q
"I will now have my own place to live for the first time since 2001."
- Robert Rowan
Many Mansions' Stories
SECTION G I Potential Conflicts of Interest I SOQ FOR AFFORDABLE HOUSING DEVELOPMENT AND ADMINISTRATIVE SERVICES 30
200
Attachment B
Jamboree RFQ Response
201
� + G _ , � �..� �� awn �'� �' � =.�II � � -.. � � � ��•
��-
City of El Segundo:
- Request For Qualifications Affordable Housing Development And Administrative Services
I 10 a 9 AL w
Cover Letter
Development Entity
Development & Administrative
Financial Capability
Potential Conflicts Of Interest
r -
Cover Letter
Jamboree I City of El Segundo: RFQ I 3 I
204
Jamboree I City of El Segundo: RFQ I 4 I
Jamboree
November 2, 2020
Gregg McClain
Planning Manager
City of El Segundo
Via email: gmcclain@elsegundo.org
RE: City of El Segundo
Request for Qualifications
Affordable Housing Development Services
Due November 2, 2020
To Whom It May Concern:
Jamboree Housing Corporation ("Jamboree") is pleased to submit this proposal in response to the Request
for Qualifications ("RFQ"). Jamboree is a 30-year old, award -winning, mission -driven non-profit community
development organization with high quality properties throughout California, including Los Angeles County.
Jamboree, based in Irvine, has engaged in dozens of successful cross -sector city collaborations and utilized
public/private partnerships with state and private funding to develop more than 9,000 units of affordable
housing, helping cities, like El Segundo, in fulfilling their RHNA goals. We are seeking a dedicated partner like
City of El Segundo to help us fulfill our mission through the creation of critically needed affordable and/or
supportive housing in California. El Segundo and Los Angeles County is a priority for us.
As one of the leading non-profit affordable housing developers in the nation, Jamboree develops, acquires,
renovates, and manages affordable rental housing, including a range of housing options for working families,
seniors, veterans, and previously homeless.
Established in 1990, Jamboree currently has $1.3 billion in family, senior, and supportive affordable housing
projects under development and an estimated $3.2 billion asset portfolio in more than 86 California
communities, including Los Angeles County. Jamboree is Orange County's largest developer of Permanent
Supportive Housing for formerly homeless individuals living with mental illness.
More than 18,800 Californians at various income levels from San Diego to the Santa Clara County currently
call Jamboree home and among them are 800 veterans, 2,100 seniors, and 475 persons with a history of
mental health disabilities and experience with homelessness. We have developed properties with blended
populations of families, seniors, and/or supportive housing.
J n :� Ii m! (:; < . ._. !.; , - c... Ire' INF: I S;;cr,nro^�::NTID I Snr! ❑.1-1GO
770 L Srr<LET. SL..TE 950 S =.r, ;;iv1E::rJ Cn 9581 4 P 91 5.545.2441 F 949.253.0647 jarnhoroehousing.ccm
205
Social and Supportive Services
Robust services are not an afterthought for Jamboree, it is an imperative and priority.
We have been able to transform lives and strength the communities in which the developments reside by
integrating onsite services and making them available to the surrounding neighborhood residents and
community members, well beyond the property's residents. In our developments, we have included health
clinics, Head Start childcare programs, food distribution and many other onsite integrated uses that benefit
the community at large.
Jamboree is qualified, committed, and prepared to bring our results -driven supportive housing model to
El Segundo through the partnership with the local and regional groups. We invite you to tour one of our
affordable housing properties to see our high -quality development skills and innovative programming in
person. To schedule a tour or if you have any additional questions, please contact us.
We look forward to the opportunity to work city staff, city council and the residents of El Segundo to develop
a strategic affordable housing development plan, identify properties, helping in the development and/or
rehabilitation of properties and long term ownership and management of properties to meet El Segundo's
highest housing needs.
Principal Contact is Roger Kinoshita, Senior Director — Business Development.
Jamboree agrees to adhere to the minimum income and affordability standards identified in the RFQ.
Sincerely,
JAMBOREE HOUSING CORPORATION
eLA
Roger Kinoshita
Senior Director, Business Development
RKinoshita@JamboreeHousing.com
17701 Cowan Avenue, Suite 200
Irvine, CA 92614 1949.263.8676
Michael Massie
Chief Development Officer
mmassie@jamboreehousing.com
17701 Cowan Avenue, Suite 220
Irvine, CA 92614 1949.263.8676
All of the above parties may bind the firm and may respond to questions regarding the statement of
qualifications.
206
Jamboree I City of El Segundo: RFQ I 6 I
Birch Hills a certified LEED for Homes Platinum workforce housing community in Brea, CA
207
Development Entity
Jamboree I City of El Segundo: RFQ I % I
I
Development Entity
The development entity is yet to be formed. It will be
a Limited Partnership with a to be formed Jamboree
Housing Corporation LLC serving as the Managing
General Partner and a to be determined tax credit
partner as the Limited Partner. Jamboree has earned a
reputation for taking extraordinary steps to effectively
translate the housing vision of localities into reality. At
the forefront of this process is Jamboree's Development
Group staffed by a highly experienced team of
professionals with exceptional multidisciplinary
knowledge, skills and talents.
This group consistently delivers on the goal of creating
quality affordable housing, and producing multifamily
properties that are completed on time and on budget
and are indistinguishable from comparable market -rate
projects. For Jamboree, it is a design requirement that
regardless of the location and surrounding environment,
its projects must blend seamlessly into the community
while also bolstering and enhancing the aesthetic fabric
down to the finest grain. With quality as a hallmark, the
development team works closely with local jurisdictions
to ensure Jamboree's properties and programming serve
as a catalyst to help revitalize communities, advance
health, initiatives and when applicable, restore and
preserve historic landmarks.
As the first step in the development process, Jamboree's
professional staff identifies opportunities and
analyzes the feasibility of future projects and their
contribution to the health and overall benefits they bring
to strengthen a community. Once a site is acquired, the
Development Group secures financing, entitlements,
meets with local stakeholders to build community
support, coordinates with consultants on the design
and costs to ensure financial and environmental
sustainability, and works closely with city staff to secure
licenses, permits and approvals. Jamboree is also
experienced in development of surplus land and infill
parcels of land like Diamond, Monarch and Greenleaf
Apartments in Anaheim, adaptive reuse of underused
projects such as Wesley Village in Garden Grove and the
preservation of historic structures such as the Hotel Berry
(now Studios at Hotel Berry) in downtown Sacramento.
Jamboree I City of El Segundo: RFQ I 8 I
A key component of Jamboree's development strategy
to improve and streamline the construction process for
both new projects and acquisition/rehabilitation projects
is the company's in-house construction company,
Quality Development and Construction Inc., ("QDC") an
independent 501 (c)(3) entity. QDC serves as a licensed
general contractor, technical consultant, design expert
and construction manager for affordable housing
properties developed by Jamboree.
Integral to Jamboree's Development Group, QDC
brings specific design and construction expertise to
bear throughout the entire development process; it
enhances the quality and efficiency in all aspects of
new construction at Jamboree communities as well as
the rehabilitation of existing properties.This ensures
construction standardization across the company's asset
portfolio, as well as more cost-effective design solutions,
and greater sustainability that maintain quality and
affordability vital to Jamboree's commitment for creating
housing and benefiting communities and residents over
the long term.
Jamboree's Asset Management team is dedicated to
the strategic planning of current and new investments,
providing vision, resources, and innovative green and
sustainable options for our ever-growing operations. With
robust reporting capabilities and a strong sense of pride
in exceeding required financial obligations, compliance
assurance and asset preservation, our team is unique in
delivering mission -focused asset management.
Jamboree has a proven track record for delivery
of programming and resident services that
benefit families and seniors and an enhanced level
of supportive services for those with special needs.
Jamboree expands the delivery of services through
innovative community service partnerships with
school districts, government entities, healthcare
organizations, resident groups, community alliances,
social enterprises, philanthropy, and other nonprofits,
aligned for best practices and shared goals.
1E
Several Jamboree staff rnembers will be assigned to the
development under the leadership of Tung Tan, Senior
Director Development. Resumes of Ivey staff members
follm'vv:
Jamboree Housing Corporation
17701 Cowan Ave., Suite 200, Irvine, CA 92614
(949) 263-8676
Laura Archuleta, President & CEO
Michael Massie, Chief Development Officer
Roger Kinoshita, Senior Director, Business
Development
Tung Tran, Senior Director, Development
LAURA ARCHULETA, PRESIDENT and CEO
Since 1999, Laura Archuleta has guided Jamboree
Housing Corporation from a small, Irvine, CA -based
nonprofit affordable housing developer with 750 units
into one of the nation's largest nonprofit owners having
developed 9,100 homes in more than 96 communities.
She believes that a complete community includes a
diversity of housing choices as a key component
to strengthen California communities by creating
opportunities to access quality affordable housing,
responsive resident services, and programs that enhance
quality of life.
Under Archuleta's leadership, Jamboree creates healthy
communities where residents thrive as they live,
work, shop and play in their local neighborhoods. She
credits the nonprofit's year track record of operational
performance to its strong business ethics, industry
partnerships and quality community and housing
development that incorporates state-of-the-art
sustainability design and construction techniques.
Jamboree I City of El Segundo: RFQ I 9 I
Archuleta was also instrumental in
establishing Jamboree's in- house Community Impact
Group, Housing with Heart, in 2004. In 2010, Jamboree
expanded the Community Impact Group with the
acquisition of HOMES, Inc., a leading nonprofit provider
of housing and support for people living with mental
illness. This partnership furthers Jamboree's goal to
designate at least 10% of the apartment homes at
each of its new properties to people with special
needs. In 2012 Jamboree launched its own in-
house construction group, Quality Development and
Construction, Inc. to ensure construction standardization
across Jamboree's asset portfolio, as well as more cost-
effective design solutions and greater sustainability to
maintain affordability vital to Jamboree's commitment
for the long term.
Archuleta currently is on the Affordable Housing
Advisory Council of the Federal Home Loan Bank of San
Francisco, is a member of the boards of the California
Housing Consortium, and the Building Industry
Association (BIA) of California and a member of the
United Way Orange County Leadership Council, She
earned a bachelor's degree in criminal justice and a
master's degree in public administration from California
State University, Fullerton.
Email. larchuleto@jamboreehousing.com
210
MICHAEL MASSIE, CHIEF DEVELOPMENT OFFICER
Michael Massie's years of broad experience in all facets
of residential development, affordable housing, and real
estate finance have been developed across a changing
real estate landscape. As the Chief Development Officer,
he works to identify and secure sources of capital and
alternative funding resources to support Jamboree's
mission. In this role, he oversees construction, business
development, and housing development.
Michael returned to Jamboree in 2017 after having
previously served as Senior Project Manager from 2005
to 2008, and Director of Housing Development from
2008 to 2014. He managed all aspects of Jamboree's
affordable housing development program, including
public and private finance, design, entitlement, and
construction of more than 2,800 multifamily units
throughout California.
To diversify his experience and knowledge, Michael
pursued executive opportunities with other major
builders of multifamily housing from 2014 to 2017.
At The Picerne Group, he oversaw the development
of all of the company's multifamily projects throughout
Southern California and was a member of the executive
committee. At Related California, he was vice president
responsible for the company's affordable housing
developments in San Diego and Los Angeles counties.
Michael graduated from the University of Pennsylvania's
Wharton School with a bachelor's degree in Economics
and concentrations in Real Estate and Finance
Email. mmassie@jamboreehousing.com
GEORGE SEARCY, CHIEF OPERATING OFFICER
George Searcy leads Jamboree staff that oversee
activities at all our properties, including Asset
Management, IT, and Community Impact. In
collaboration, these teams help create and implement
strategic plans that further Jamboree's breadth and
mission. George oversees and adapts Jamboree
processes and activities, providing guidance in analyzing
outcomes to ensure effectiveness.
Jamboree I City of El Segundo: RFQ I 10 I
Dedicated to promoting a culture of high performance
that values a commitment to quality, George participates
in the planning, development, implementation, and
evaluation of key business and performance objectives,
and their application in associated programs and
policies. He also evaluates operating results across the
organization to ensure that growth and objectives are
being met. In this role, George also manages strategic
relationships with city staff, elected officials, and other
public entities, and provides strategic direction to
the board and staff on state policy and government
relations.
In his previous role as Vice President of Community
Impact, George managed Jamboree's extensive
programming that provides residents with social,
employment, education and health services designed
to enhance the quality of individual and family life.
With affordable housing as the platform for community
change, George has long been an advocate for new,
innovative services and overall community development
that result in added impact in the neighborhoods we
serve. Supporting our mission to build strong, healthy
communities, he evolved that vision to include a wider
range of social services and community partnerships.
Before coming to Jamboree, he served in the dual role
as Executive Director for the Hope Through Housing
Foundation and Executive Vice President for National
Community Renaissance (National CORE). George also
provided clinical treatment for clients at both Human
Options and Turning Point Center for Families. Previously,
he was Community Services Superintendent for the
City of Irvine, CA. He currently serves on the Centers for
Disease Control (CDC) National Leadership Academy for
the Public's Health in San Bernardino County, CA.
Email. gsearcy@jamboreehousing.com
211
ROGER KINOSHITA,SENIOR DIRECTOR BUSINESS
DEVELOPMENT
As Director Business Development, Roger Kinoshita,
identifies acquisition opportunities for Jamboree's
project pipeline and prepares feasibility analysis of new
development projects including identifying funding
options, examining risks and estimating partners' needs
and goals. Roger manage strategic partner relationships
and screens potential business deals.
Prior to joining Jamboree, Roger served in executive
roles at NAI Capital's Investment Property Group and
Grubb & Ellis' Investment Property Group. In both
executive positions, Kinoshita was involved in business
development, underwriting, and sales and financing for
commercial/industrial properties throughout California.
From 2002 to 2005, he was director of finance for Bentall
Residential, and served as a senior associate with Related
Companies of California from 2000 to 2002, where
he was responsible for the underwriting, financing,
acquisition and rehabilitation of 2,800 affordable
multifamily units valued at $285 million. At Related
Companies, he gained extensive experience in financing
affordable housing projects utilizing tax-exempt and
non-exempt bonds, federal tax equity instruments,
and local municipal financing. He earned a bachelor's
degree in business administration from the University of
Southern California in 1988 and is a licensed real estate
agent.
Email: rkinoshita@jamboreehousing.com
Jamboree I City of El Segundo: RFQ I 11 I
TUNG TRAN, SENIOR DIRECTOR DEVELOPMENT
Tung Tran, Senior Director of the Development
Group at Jamboree will lead the effort to assist in
the development this property. Tung has been with
Jamboree since 2016. Prior to joining Jamboree,
he served as Director of Development at ROEM
Development Corporation where he directed and
managed all aspects of the development of 2,000 units
of housing. Most of his work has been centered in the
Bay Area and he has specific experience developing in
Santa Clara County. Prior to his position with ROEM, he
was employed by the San Jose Redevelopment Agency
as a Development Officer. His vast knowledge and
deep understanding of Bay Area development patterns
and politics is an asset. Tung has capacity to lead and
manage projects that come to fruition as a result of this
RFQ. Tung's role will include oversite of all phases of
the development process including land acquisition,
due diligence, financing, construction, completion and
transition to asset management. Tung is supported by
three Development Associates. His staff will provide
dedicated staffing to this effort as well. Collectively the
three Development Associates have capacity to take on
the work that is associated with projects that result from
this RFQ. Tung will work closely with his staff to carry out
the development activities described above.
Email. ttran@jamboreehousing.com
212
Jamboree I City of El Segundo: RFQ I 12 I
Development &
18
Administrative Experience
213
Project Profiles
The Exchange at Gateway
Family
10562 Santa Fe Drive
El Monte, CA 91731
The Exchange at Gateway was developed as a result of
a private/public partnership among the City of El Monte,
Jamboree and Grapevine Advisors LLC, the master
developer. The Exchange at Gateway is part of a larger
master -planned, transit -oriented development.The El
Monte Gateway encompasses 25,000 SF of retail shops
and restaurants, market -rate and affordable housing.The
property was developed on a 2.1 acre urban infill site -
formerly El Monte's public works yard.
Amenities for this state-of-the-art community include a
spacious community center with computer lab featuring
Internet access, a fitness center, tutoring/arts and crafts
room and water -efficient landscaping. The property is
a 100% smoke -free environment built around a central
courtyard with barbecue/picnic areas, tot lot, outdoor
seating areas and bike storage in the underground
garage to promote exercise and a healthy lifestyle.
Each apartment home includes a patio/balcony
to encourage indoor/outdoor living. Jamboree's
Community Impact Group provides services tailored to
the needs of The Exchange at Gateway residents, such as
after -school tutoring and activities that promote health,
fitness and community involvement.
Jamboree I City of El Segundo: RFQ I 13 I
Transit -oriented development
LEED for Homes Platinum Certified
Transformed a former public works yard
CONSTRUCTION PERIOD
March 2014 - September 2015
UNITS
132
AFFORDABILITY
30% - 60%
UNIT MIX AND SQUARE FOOTAGE
39 One -bedroom 650 sf
50Two-bedroom 792-872 sf
43 Three -bedroom 1,024 -1,074 sf
FUNDING SOURCES
Union BankTax Credit Equity
$23,064,488
Union Bank Permanent Loan
$4,446,391
City of El Monte
$9,910,673
Accrued Interest
$203,075
Jamboree Deferred Developer Fee
$106,310
Total Development Costs
$37,790,937
Transit -oriented urban community in downtown El Monte, CA
214
Puerto del Sol
Family
745 W.Third St
Long Beach, CA 90802
Puerto del Sol is an award -winning, transit -oriented
affordable housing community for families. An integral
part of the West Gateway development of downtown
Long Beach, CA, the property is within walking distance
to local medical and community services, shopping and
schools as well as an area transit center and Metrolink
light rail station. Embodying principals of smart growth,
the City of Long Beach pursued a unique public/private
economic development partnership to develop this
transit -oriented urban neighborhood on portions of
eight square blocks situated at the entry to the City's
downtown core. West Gateway is a critical element in the
revitalization of greater downtown Long Beach.
Puerto del Sol features a community center with onsite
services tailored to residents and their families provided
by Jamboree's Community Impact Group. Residents
can participate in homework assistance and tutoring,
after -school and summer programs for children, arts
and crafts, computer training, ESL, fitness, art, consumer
credit counseling and financial literacy classes. Activities
also include a wide variety of community -building
events. An onsite playground provides children with a
place to play outdoors.
Jamboree I City of El Segundo: RFQ I 14 I
Transit -oriented development
Neighborhood revitalization
Replaced 13 substandard dwellings -provided
homes for 64 families
CONSTRUCTION PERIOD
February 2005 - July 2008
UNITS
64
AFFORDABILITY
40% - 50%
UNIT MIX AND SQUARE FOOTAGE
37Two-bedroom 890 sf
16 Three -bedroom 1,280 sf
11 Four -bedroom 1,485 sf
FUNDING SOURCES
MMA Financial Tax Credit Equity
$9,065,000
JP Morgan Chase Permanent Loan
$1,054,000
Long Beach Housing
Development Company
$11,818,000
California HCD - MHP
$3,863,196
Federal Home Loan Bank -AHP
$252,000
Jamboree Deferred Developer Fee
385 0 1
Total Development Costs
$26,437,257
Affordable housing community in Long Beach, CA
215
Wesley Village
Multigenerational
12741 Main Street
Garden Grove, CA 92840
Through a unique partnership with the Garden Grove
United Methodist Church, Jamboree entered into a 60-
year ground lease with the church, repurposing 2.2 acres
of excess parking space and unused vacant land that
will provide ongoing financial support for the church's
charitable activities.
Two three-story residential buildings will be home to
families and seniors, and will provide ample space for
outdoor activities with a large outdoor deck atop the
family building, a barbecue/dining area, tot lot, fitness
area, and landscaped spaces for recreation.
Jamboree's Community Impact Group will provide
activities that support residents, such as homework
assistance and tutoring for young people, plus a variety
of learning and wellness programs for adults and seniors.
As well as, coordinating services with local community
partners — the Boys & Girls Clubs of Garden Grove and
the Lestonnac Free Clinic.
Jamboree I City of El Segundo: RFQ I 15 I
Multigenerational design
Mixed -use residential and commercial
Common area spaces for community partners
LEED for Homes Gold Certified
CONSTRUCTION PERIOD
September 2015 - July 2017
UNITS
47
AFFORDABILITY
50% - 59%
UNIT MIX AND SQUARE FOOTAGE
20 One -bedroom
813 sf
11 Two -bedroom
885 - 932 sf
15 Three -bedroom
1,126 sf
FUNDING SOURCES
Boston Financial Investment Management
$7,448,971
California Community
Reinvestment Corporation
$4,794,240
City of Garden Grove
$3,700,613
Federal Home Loan Bank
$460,000
Jamboree Deffered Developer Fee
$2,418,900
aperations
$86,943
Total Development Costs
$18,909,667
Infill project on 2.2 acres of church's excess parking space and vacant land
216
Courier Place
Multigenerational
111 S. College Ave
Claremont, CA 91711
Courier Place, located on the former site of the
Claremont Courier newspaper, is Jamboree's first
multigenerational community. Built in 2011, Courier
Place is one of only a few affordable, multigenerational,
multifamily housing developments in California.
Local officials took a bold position to support this
development. Jamboree went the extra mile in reaching
out to residents — a very active citizenry — listening
intently to and aligning with the priorities of city staff
and residents. Claremont City Council's 5-0 approval of
Courier Place underscores the value of a strong public/
private partnership in the development of affordable
housing, especially in an infill site surrounded by existing
neighborhoods.
Courier Place was developed with a multi -layered
combination of funding, including first-time financing for
a Jamboree community utilizing City of Industry Funds.
Courier Place's unique design concept allows seniors the
option to integrate with or enjoy quiet separateness from
residents with families. The three-story senior building
features 38 one -bedroom apartments, an elevator, a
third -floor outdoor roof deck, and hallways lined with
handrails for added safety. The two-story recreation
space — that includes a kitchen, computer center, library
and outdoor roof deck patio — encourages activities and
socialization among seniors. Onsite services are designed
especially for seniors — including technology classes to
help them keep in touch with friends and family.
The 37 two and three -bedroom family apartments are
in two buildings, one of which is non-smoking. Like the
seniors building, community areas are designed around
the needs of each. For example, the tot lot portion of
the common areas is situated at the edge of the central
common area core closest to the family buildings, so
parents can visually monitor their children from their
home and playground noises are minimized for seniors.
Jamboree I City of El Segundo: RFQ I 16 I
Multigenerational
LEED for Homes Platinum Certified
Transit -oriented Development
CONSTRUCTION PERIOD
December 2010 - December 2011
UNITS
74
AFFORDABILITY
30% - 50%
UNIT MIX AND SQUARE FOOTAGE
39 One -bedroom 598 sf
13 Two -bedroom 909 sf
24Three-bedroom 1,172 sf
FUNDING SOURCES
City of Claremont $3,404,871
Community Development Commission of Los Angeles
- Home and City of Industry Funds $2,750,000
U.S. Bank Construction Loan $13,000,000
WNC &Associates, Inc.Tax Credit Equity $13,228,107
Jamboree Deferred Developer Fee 5421,757
Total Development Costs $19,804,735
Community center at Courier Place in Claremont, CA
217
Heroes Landing
Homeless Veterans
3312 West 1 st Street
Santa Ana, CA 92703
Santa Ana Veterans Village is a new construction
permanent supportive housing community for
homeless veterans and their families. As Jamboree's
first dedicated property for veterans, it is Orange
County's largest housing development exclusively for
veterans. The community is part of the City of Santa
Ana's Harbor Mixed Use Transit Corridor Plan which calls
for retail stores, restaurants, office buildings and more
housing options in a more walkable, safe and attractive
environment. The 1.54-acre vacant, blighted site (a
previous parking lot) was repurposed into a veterans
community that integrates into a thriving neighborhood
that includes a Buddhist temple, an apartment
community, and a gated single-family development.
In collaboration with the City of Santa Ana, the Veterans
Administration (VA) and other leading veterans service
organizations, Jamboree's design concept for this
innovative development is"to be a sanctuary of stability
and a hub of hope"for some of Orange County's most
vulnerable veterans.This concept is brought to life with
a U-shaped, three-story, elevatored residential building
of 75 one- and two -bedroom apartments that opens
onto a spacious courtyard. The nearly 10,000 square
feet of active open space includes a community garden
and reflection walk and a 4,500-square-foot community
center that is home to a Veterans Services Collaborative.
With the creation of the Santa Ana Veterans Village
Collaborative, Jamboree's innovative approach to
community impact brings together — in one place —
some of Orange County's leading veterans service
agencies to support residents as well as veterans
throughout the community:
VA Long Beach Healthcare System provides both
mental health counseling and wellness services.
Goodwill of Orange County's Tierney Center for
Veterans Services operates employment services on
site.
Veterans Legal Institute provides pro bono legal
assistance to homeless and low-income current and
former service members.
Jamboree I City of El Segundo: RFQ I 17 I
Orange County's largest housing
development exclusively for veterans
75 VASH vouchers through U.S. Department of Veter-
ans Affairs
Strength in Support provides supportive services
to military personnel, veterans, and their families,
including individual and family therapy, mentorship,
and workshops at the site.
Step Up, an experienced supportive service provider
for veterans, is the contracted service provider.
CONSTRUCTION PERIOD
December 2018 - June 2020
UNITS
75
AFFORDABILITY
30%
UNIT MIX AND SQUARE FOOTAGE
71 One -bedroom 496 sf
4Two-bedroom 709 sf
FUNDING SOURCES
Union Bank Tax Credit Equity
$12,900,425
Union Bank Permanent Loan
$10,300,000
Orange County Housing & Community Services
/
California Housing Finance Agency
$2,912,000
Orange County Community Foundation
$1,500,000
Federal Home Loan Bank of San Francisco,
AHP loan
$750,000
Jamboree Deferred Developer Fee
$614,641
The Home Depot Foundation
$ 500,000
City of Santa Ana, HOME funds through U.S.
Department
of Hiousing and Urban Development HUD
$477,346
Total Development Costs
$29,954,412
218
Development Pipeline Project Profiles
Finamore Place
Family/ Homeless
915 E. Orangewood Avenue
Anaheim, CA 92802
Finamore Place is an affordable new construction
housing development for both large families and
formerly homeless families. Since 2008, Jamboree
and the City of Anaheim have partnered on seven
communities, creating more than 536 units of high -
quality, affordable housing. Through a 55-year
ground lease agreement with the Anaheim Housing
Authority, Jamboree will transform its eighth Anaheim
development from a 2.86-acre vacant site into a vibrant
community asset for the entire Haster Orangewood
neighborhood.
In collaboration with the City of Anaheim and other
leading community service partners, Jamboree's
design concept for this innovative development is to
be a beacon of hope and support for residents and
the surrounding community. This concept will be
brought to life with a four-story apartment building
of 102 one-, two-, and three -bedroom apartments
that open onto a spacious courtyard with nearly
15,000-square-feet of active open space. A two-story,
15,000-square-foot community center — the largest
of any Jamboree property to date — will be home to a
collaboration of resident and community services for
the entire neighborhood, including an onsite satellite
family mental health services center and a separate
3,800-square-foot onsite early education center.
Jamboree I City of El Segundo: RFQ I 18 I
Designed to achieve a LEED for Homes certification
Jamboree's eighth Anaheim development
COMPLETION
Slated for September 2021
UNITS
102
AFFORDABILITY
30% - 60%
UNIT MIX AND SQUARE FOOTAGE
48 One -bedroom 700 sf
27Two-bedroom 825 sf
27 Three -bedroom 1,050 sf
FUNDING SOURCES
• Union Bank: $25.3 million in tax credit equity, $32.2
million in construction financing, $14.3 million in
permanent financing
• City of Anaheim: $4 million (HOME, transportation
waiver, rebates, energy credits), 55-year ground lease
• and $10.2 million land note
• Orange County Housing Trust: $1.5 million loan
Rendering of Finamore Place in Anaheim, CA
219
Sierra Avenue
Family
16839 Ramona Avenue
Fontana, CA 92336
Sierra Avenue is an affordable new construction
development for large families on a site located at
the southwest corner of Sierra and Ramona Avenues
in the City of Fontana. Since 2001, Jamboree and the
Fontana Housing Authority have partnered on seven
communities, creating more than 350 high -quality,
affordable apartment homes. Through a 60-year ground
lease agreement with the Fontana Housing Authority,
Jamboree will transform a 4.31-acre blighted lot,
previously owned by San Gabriel Water Company, into
60 units of affordable housing for working families.
Located near downtown Fontana, Sierra Avenue will offer
60 one-, two-, and three -bedroom apartments in a trio
of three-story buildings. Special design consideration
is being given to match the neighboring architecture,
influenced by the farmhouse style found throughout the
city. The exterior of the buildings will be a combination
of stucco, HardiePanel siding, and stone veneer accents.
The community service center, with its many amenities,
will be the focal point of the development.
Sierra Avenue will feature an approximately
5,000-square-foot community building that will house
flexible recreational space, onsite management offices,
kitchen facilities, and a computer lab where free onsite
resident services will be provided to residents and
available to the surrounding community. In addition
to the community space, the property will include a
3,000-square-foot health and wellness clinic as part of
Jamboree's new partnership with Cucamonga Valley
Medical Group. The clinic will offer residents and
community members the access to health education
classes, flu shots, immunization services, and sick
childcare services. Outdoor amenities will include
recreational space with a swimming pool, shaded tot lot,
BBQ with dining areas, and a community garden. Each
building will have its own laundry facility as well as on -
grade parking
Jamboree I City of El Segundo: RFQ I 19 I
Designed to achieve a LEED for Homes
Silver certification
Jamboree's seventh Fontana development
COMPLETION
Slated for April 2021
UNITS
60
AFFORDABILITY
30% - 60%
UNIT MIX AND SQUARE FOOTAGE
6 One -bedroom 660 sf
30Two-bedroom 855 sf
24Three-bedroom 1,088 sf
FUNDING SOURCES
• Red Stone Equity Partners: $14.9 million
tax credit equity
• Banner Bank: $2.19 million in permanent financing,
$10.8 million in construction financing
• City of Fontana: $6.1 million
Rendering of Sierra Avenue in Fontana, CA
220
West Mission
Homeless Veterans / Family
592 W Mission Blvd
Pomona, CA 91766
West Mission Apartments is a new construction family
development consisting of 57 units. The proposed
project will be located on a 1.43 acres vacant site in the
City of Pomona.The project will include 56 one, two, and
three -bedroom units and one manager's unit. Ten units
will be targeted for individuals and family experiencing
homelessness who are on Social Security Income at 15%
Area Median Income (AMI). Six units will be targeted
for homeless veterans with Veterans Affairs Supportive
Housing (VASH) Project -Based Vouchers (PBVs).The
remaining 40 units will be targeted to families earning
between 30% to 60% AMI. The proposed project will
include a 5,700 square foot leasing & amenity space with
a large multi -purpose room, classroom for after -school
program, and group and individual conference rooms.
The outdoor amenities for the community will include an
outdoor fitness area, community garden, and a tot lot.
Jamboree I City of El Segundo: RFQ I 20 I
6 VASH vouchers through U.S. Department of
Veterans Affairs
COMPLETION
Slated for July 2022
UNITS
57
AFFORDABILITY
15% - 60%
UNIT MIX AND SQUARE FOOTAGE
22 One -bedroom 763 sf
20 Two -bedroom 807 sf
15 Three -bedroom 974 sf
FUNDING SOURCES
The proposed funding structure assumes 9% tax credit
financing, 10 MHSATri-City MHSA units, and 8 VASH-
PBVs, and SGVRHT Funds,
Rendering of Mission Boulevard in Pomona, CA
221
Property Management And Affordability Compliance
Jamboree has successfully navigated the current climate
of scarce financial resources to develop affordable
housing communities throughout the state. Over its 30
year history, Jamboree has earned a reputation of taking
extraordinary steps to bring visions to reality.
Bringing strong partnerships to these financing solutions
and working with the diversity of funding sources has
been a key to creating developments. The diversity of
financial sources have included success in competitive
tax credits where our experience has qualified us for the
maximum experience points.
All of Jamboree's properties involve multiple
regulatory agreements. This has required a familiarity
with managing multiple federal, state, county and
local housing program occupancy and affordability
guidelines. Our knowledge of these guidelines and
experience with programs such as HOME, CDBG, HUD,
CalHFA, HCD, the Low -Income Tax Credit, and other
programs assures our full compliance with Regulatory
Agreements and Fair Housing requirements.
Jamboree's Asset Management group is dedicated to
maintaining the quality and effective oversight of its
properties in the years and decades ahead; a key to the
company's strategy of creating valuable housing and
programming assets for the communities in which its
properties are located. With robust reporting capabilities
and a strong sense of pride in exceeding required
financial obligations, compliance assurance and asset
preservation, our team is unique in delivering mission -
focused asset management.
Jamboree understands that the development of premier
affordable housing is only the first phase of what will
be a longterm partnership with the communities in
which we develop properties. Given that our long-
term ownership often spans 55 years, maintaining the
quality and effective oversight of these developments
strengthens communities, reduces blight, crime and
poverty and is key to them remaining valuable assets to
the communities we serve.
Jamboree I City of El Segundo: RFQ I 21 I
Jamboree recognizes that a change in property
management can be disruptive to residents. Accordingly,
it manages this type of change with the utmost care
to ensure a smooth coordinated transition with the
least amount of operational disruption. Jamboree's
asset management team coordinates the planning
and discussion of the transition with existing and new
management companies. Through well developed
transition systems, amongst them resident files,
maintenance systems, utility accounts, etc., weekly calls
are scheduled during the planning and transition to
ensure clear communication and transparency.
Residents are made aware of an upcoming management
change with written correspondence that is followed up
with an introduction meeting within 30 days of take over.
At this gathering, residents have the opportunity to meet
the new management team and ask any questions they
may have.
Our goal is to ensure a seamless transition with
the highest resident satisfaction. With this in mind,
Jamborees asset management will periodically
administer resident satisfaction surveys and make
improvements in areas of opportunity as they are
identified.
Community room at Birch Hills in Brea, CA
222
About Jamboree
Established in 1990, Irvine, CA -headquartered Jamboree
Housing Corporation is an award -winning, broad -
based nonprofit community development company
with properties throughout California. Jamboree as
one of the country's largest developers of affordable
housing develops, acquires, renovates, and manages
permanently affordable rental and ownership housing
for working families, seniors, veterans, and people with
special needs. Jamboree currently has $1.1 billion in
affordable housing projects in its development pipeline
and a $3.2 billion asset portfolio that includes the
development of and/or ownership interest in more than
9,000 homes in more than 96 California communities.
Community Impact
As a Community Housing Development Organization
(CHOO) at the State and County level as well as various
California cities for the past 30 years, Jamboree's mission
is to deliver quality affordable housing and services that
transform lives and strengthen communities. To fulfill its
mission and to maintain a continuum of quality housing
and services that are the foundation of its reputation and
livelihood, Jamboree fully embraces the principle that
the development of premier affordable housing is only
the first phase of what will be a longterm partnership
and operational commitment with stakeholders and the
communities in which the company develops.
Jamboree still maintains relationships that date back to
its founding in 1990.
Jamboree's Community Impact Group is committed
to enhancing the high quality of its housing, with
responsive social services and programming that
benefits people's lives as well as the environment, the
economy, and local neighborhoods, and communities.
To th is end, the company's primary outreach priority
continues to be the advancement of its relationships
with local governments/stakeholders and associated
agencies and entities.
Jamboree I City of El Segundo: RFQ I 22 I
It is because of this outreach coupled with a commitment
to the community that Jamboree is invited back time
and again to develop in cities and counties where it has
existing affordable properties, thereby underscoring the
value of these sustained relationships and the quality
of Jamboree's work. Further evidence of Jamboree's
strength is the fact that it has been successfully
developing and operating affordable housing properties
in many different communities and diverse market/
economic environments.
501(c)(3) Jamboree's Board of Directors is a guiding force
comprised of leaders who draw from an abundance of
experience to work together to create quality affordable
and workforce housing with services for California
communities. With backgrounds in finance, banking, real
estate, property management, law and development,
board members apply their diverse knowledge to guide
the nonprofit into the future with purpose and strength.
Jamboree's principal office and the office that will
undertake the proposed project is located at:
17701 Cowan Avenue, Suite 200
Irvine, CA 92614
Jamboree has experience working on projects in
jurisdictions similar to El Segundo.
Multi -generational housing with 10,000 sf of active open space
223
Financial Capability
Jamboree I City of El Segundo: RFQ I 23 I
224
Jamboree I City of El Segundo: RFQ I 24 I
Financial Capability
With a property portfolio in excess of $3 billion, net assets in excess of $605 million and nearly $24 million in cash,
Jamboree has the balance sheet to ensure we complete any development we commit to.
We routinely obtain pricing and terms that are indicative of our financial stability. Portfolio stability combined with low
overhead and low corporate debt help mitigate business risk amid challenges in the industry and economy. U.S. Bank
has extended an EQ2 line to Jamboree, reinforcing the fact that our capital partners believe in our financial strength.
Jamboree has been a leader in developing innovative financing strategies to ensure our developments are fully
funded. Accordingly, Jamboree has never failed to win a tax credit allocation for an eligible project awarded via RFP.
Our success in winning competitive allocations of scarce low- income tax credits through the California Tax Credit
Allocation Committee (TCAC), coupled with attracting top tax credit investors is significant. Jamboree qualifies for the
maximum allowable experience points when competing for tax credits from TCAC.
We enjoy strong capital relationships with many commercial lenders such Bank of America, Union Bank, US Bank, and
Century Housing. Our in-depth expertise brings together a nexus of funding sources allocated from the California
Debt Limit Allocation Committee (CDLAC), Federal Home Loan Bank (FHLB), U.S. Department of Housing and Urban
Development (HUD), U.S. Department of Agriculture (USDA) and California Department of Housing and Community
Development (HCD). These public agencies partner with conventional construction and permanent loans, and other
local, state, and federal grants and financing.
We have expertly navigated the current climate of scarce resources to obtain funds from the Home Investment
Partnership Program, Neighborhood Stabilization Program, Community Development Block Grant, Continuum of Care,
MHSA and Homekey. Our development team continues to access new funding programs such as No Place Like Home
and Veterans Housing and Homelessness Prevention Program. We credit this success to our strong partnerships that
ultimately create superior developments that attract necessary funding.
Over the years, Jamboree has received $420 million of tax credit equity through the 4%, 9% and state tax credit
programs, $220 million of bond financing, and $25 million of HOME funds. With the loss of RDA funding, Jamboree
was able to secure alternate financing through a myriad of resources. Jamboree's financial acumen has meant many
"firsts" including: building the first development in the state using MHSA funds, Diamond Apartments; developing
two communities, Hotel Berry and Birch Apartments in Brea with ARRA funds; and building the first development in
the state, West Gateway Place in West Sacramento, using AHSC funds received from the first Cap and Trade auction.
Recently Jamboree was awarded over $67 million to convert 343 motel rooms into permanent supportive housing for
the homeless.
Jamboree has never defaulted on a financial obligation, had a development foreclosed upon or filed for bankruptcy.
A brief summary of Jamboree's consolidated financial position follows. A complete list of our legal and financial
references is also attached. Forms 990 and 1023 as well as the most recent Audit HUD A133 audits are available upon
request.
Over the past five years Jamboree and its related entities have been involved in various landlord tenant lawsuits
such as evictions, slip and fall incidents, which have routinely been resolved through our insurance carriers, and
subcontractor liens which have been paid in full. None of these lawsuits would have an adverse impact on other
developments.
225
Jamboree Consolidated Financials
Jamboree I City of El Segundo: RFQ I 25 I
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2019
Assets
Current Assets
Cash and investments
Other current assets
Total Current Assets
Property and equipment
Project predevelopment costs
Long term receivables
Restricted funds
Other assets
Total Assets
Liabilities and Net Assets
Current liabilities
Long term liabilities
Total Liabilities
Net Assets
Total Liabilities and Net Assets
2018
(000)
$ 44,264 $ 40,155
5,020 6,725
49,283 46,880
546,156
541,182
13,322
1,803
10,409
7,072
21,547
20,664
3,824
5,408
$ 644,542 $
623,009
28,626
16,210
406,530
393,608
$ 435,156 $
409,819
209,386
213,190
$ 644,542 $
623,009
CONSOLIDATED STATEMENTS OF ACTIVITIES
Public Support and Other Revenue
Public support $
650 $
1,142
Project development fees
1,354
2,027
Rental revenue
43,257
40,968
Management and services fees
635
880
Other revenue
4,420
2,463
Total Public Support and Other Revenue $
50,315 $
47,481
Expenses
Program expenses
61,385
56,037
Supporting services
2,118
1,948
Total Expenses
63,503
57,985
Change in Net Assets from Continuing Operations $
(13,188) $
(10,504)
Non -controlling Interests' Contributions
11,322
18,410
Other Changes in Net Assets
(1,939)
(728)
Net Assets at Beginning of Year
213,190
206,014
Net Assets at End of Year $
209,386 $
213,190
226
Jamboree References
LEGAL
City of Brea
Contact: David Crabtree
Rutan &Tucker, LLP
Community Development Director
Contact: Patrick McCalla
(714) 671-4481
Partner
(714) 641-3456
City of Buena Park
Contact: Aaron France
ACCOUNTANT
Interim City Manager
Holthouse, Carlin & Van Trigt
(714) 562-3550
Contact: Dave Bierhorst
City of Irvine
Partner
Contact. Steve Holtz
(805) 8555
Neighborhood Services Manager
Novogradac & Company LLP
(949) 724-6470
Contact: Lance Smith
City of Lancaster
Managing Partner
Man
M
Contact: Elizabeth Brubaker
356-80
Housing & Neighborhood Revitalization
Director
LENDERS
(661) 723-5878
P R I VA7 E
City of Long Beach
Bank of America Community Lending
Contact: Patrick Ure
Contact: Maria Joyce Maynard
Housing Development Officer
Vice President Community Development
(562) 570-6364
(213) 621-7590
County of Orange
Century Housing
Contact: Julia Bidwell
Contact:Josh Hamilton
Deputy Director for Housing and Community
Senior Vice President
Development
(310) 462-2030
(714) 480-2991
Enterprise Community Partners
County of Sacramento
Contact: Jacqueline Waggoner
Contact: Christine Weichert
Vice President
Assistant Director of Development Finance
(213) 787-8229
(916) 440-1399
Union Bank
Contact: Perica Bell
DEVELOPMENT PARTNERS
Director, RE Area Manager
(310) 551-8964
CalAtlantic Homes
Contact: Michael Battaglia
U.S. Bank Community Lending
Vice President of Project
Contact: Kathleen T. Calvert
Development
Vice President
(949) 789-1752
(213) 615-6409
Capital Valley Investments
Contact: Darren Horning
PUBLIC
Owner
City of Anaheim
(916) 780-4900 x218
Contact: John Woodhead
Community Development Director
Chevron Land and Development Co.
(714) 765-4300 x4332
Contact: James A. Martinez
Project Manager
(714) 671-3534 x218
Jamboree I City of El Segundo: RFQ I 26 I
Preservation Partners Development
Contact: Bill Szymczak
President
(310) 802-6676
Shea Homes
Contact: John Danvers
Vice President
(951) 739-9713
The Ezralow Company
Contact: Gary Freedman
Principal & Vice President
(818) 223-3535
The Irvine Company
Contact: Michael LeBlanc
Senior Vice President
(949) 720-2321
TAX CREDIT EQUITY INVESTORS
Bank of America Community Lending
Contact: Maria Joyce Maynard
Vice President Community Development
(213) 621-7590
Boston Financial Investment Management
Contact: Roy Faerber
Senior Vice President
(310) 860-1321
Enterprise Community Investment Inc.
Contact: Jacqueline Waggoner
Vice President
(213) 787-8229
RBC Capital Markets
Contact: Stacie Altmann
Director
(916) 705-8653
Union Bank
Contact: Perica Bell
Director, REAreo Manager
(310) 551-8964
WNC & Associates, Inc.
Contact: Michael Gaber
Executive Vice President & COO
(714) 662-5565 x130
227
Jamboree I City of El Segundo: RFQ I 27 I
Potential Conflicts Of Interest
228
Jamboree I City of El Segundo: RFQ I 28 I
Potential Conflicts Of Interest
For the past two years none of the Jamboree staff or board members have been employed or acted as a consultant to
the city, served as a councilperson nor served on a board or commission that had direct influence on the use of public
funds.
November 2, 2020
229
Jamboree I City of El Segundo: RFQ I 29 I
Jamboree by the Numbers
200
partners
4+
pities
91000+
units california
Mountie staff
- hL_
mission
I-
18,r800+
residents 0
F
100+
quality awards
001
2 45�
pipeline joint
supporters venter€
230
Jamboree
Jamboree Housing Corporation Tel 949.263.8676 Regional Offices:
17701 Cowan Avenue, Suite 200 Fax 949.263.0647 Sacramento
Irvine, CA 92614 www.jamboreehousing.com San Diego
231
Attachment C
Abode RFQ Response
232
I
,r
A. Cover Sheet
j� Y•
Qualifications to Provide �
Affordable Housing
Cy git of El Se undo
I'M
November 9, 2020
Y' l
N
lei
WR
Table. of Contents
4��: �F.' ir' ; III
J
IT
A. Cover Sheet
B. Table of Contents
C. Cover Letter
D. Housing Services Provider
1. Lead Entity
2. Team Member Profiles
3. Staff Roles & Responsibilities
4. Key Staff Resumes
E. Development & Management Experience
1. Project Experience
2. Sample Pipeline
3. Asset Management & Regulatory Compliance
4. Property Management
5. Jurisdictions Similar to El Segundo
6. Team Information
F. Financial Capability
1. Capacity
2. References
3. Financial Statements 2019-2018
4. Loan Default
5. Legal Action
G. Conflict of Interest
H. Appendix
Audited Financial Statements 2019-2018
1 N'
A I
C. Cover Letter
�y i•� — IL•—'�^"'. .. - III' � .
. r
1. +�Ir I�'� .i, I -• � � ail_ � .. �..�.._ _
November 9, 2020
Paul Samaras
Principal Planner, AICP
City of El Segundo Via Email: psamaras@elsegundo.org
RE: City of El Segundo Request for Qualifications, Affordable Housing Services
Dear Mr. Samaras:
Abode Communities is pleased to present its qualifications to partner with the City of El Segundo in its
quest to deliver a comprehensive affordable housing strategy. Abode Communities is a dynamic multi-
disciplinary organization offering real estate, architecture, property management, and resident (social)
services. The organization's vision is that of El Segundo's - improve access to affordable housing by
identifying acquisition opportunities; produce superior, integrated affordable housing developments
that increase property value and improve the livelihoods of economically diverse populations; and
own/operate housing as high -value community assets in perpetuity.
By choosing Abode Communities, the City of El Segundo will benefit from a respondent team with:
• More than five decades of experience collaborating with local jurisdictions to take on the
challenges of delivering affordable housing and meeting housing goals;
• An acquisitions team with the proven experience to identify and secure new opportunities through
a wide network of resources and range of avenues to success;
• A development team with a successful history delivering high -quality and cost-efficient affordable
housing across multiple product types and target populations;
• Unparalleled expertise in securing and negotiating complex project financing to leverage valuable
local resources;
• Financial resources and robust, long-standing relationships with public funding agencies and debt
and equity partners to deliver developments on time and within budget;
A deep commitment to sustainability as a means to improve long-term resident health outcomes
and create long-term real estate assets that benefit the community at -large; and
A mission -based organization committed to upholding a superior standard of living through the
long-term ownership and operation of service -enhanced affordable housing.
As a mission -based organization, Abode Communities further confirms it will adhere to the minimum
income and affordability standards required by the City of El Segundo.
We invite you to review the enclosed qualifications to learn more about the depth of our qualifications
and first -in -class team. Thank you for your consideration - we look forward to the opportunity
to collaborate with you on this exciting endeavor.
S' KI
ly,
Robin Hugh
President EO
(213)225-2762
rhughes@abodecommunities.org
C
Vice President, Business Development
(213)225-2725
stsay@abodecommunities.org
*;-4 r
• 1! �•3Z
Ft
D. Housing Services
Provider
1. Lead Entity
Founded in 1968, Abode Communities, a nonprofit 501(c)(3) social enterprise, will be the lead and
sole entity to enter into agreement with the City of El Segundo for the strategic planning of affordable
housing, including the identification of acquisition opportunities.
For individual affordable housing projects acquired or developed through Abode Communities' work
with the City, Abode Communities will serve as principal of the legal entity that develops, owns, and
operates the affordable housing. Separate limited partnerships will be formed to deliver each project,
with Abode Communities serving as the General Partner and a tax credit investor or other private
equity partner as the Limited Partner, as is typical of affordable housing developments. Please see
below for more information about Abode Communities' proposed team.
2. Team Member Profiles
In operation for more than 50 years in Los Angeles County, Abode Communities is a dynamic multi-
disciplinary organization offering real estate and development, architecture, property management,
and resident (social) services. The organization's vision is that of El Segundo's - improve access to
affordable housing by identifying acquisition opportunities; produce superior, integrated affordable
housing developments that increase property value and improve the livelihoods of economically
diverse populations; and own/operate housing as high -value community assets in perpetuity. This
work will be guided by the organization's mission to create service -enhanced affordable housing that
promotes the social, economic, and physical transformation of communities.
Abode Communities' acquisition and development work is supported by financial consultant California
Housing Partnership, who has been collaborating with Abode Communities to deliver superior
affordable housing for more than two decades.
Abode Communities I Real Estate will lead the team's efforts to assist the City of El Segundo in
developing a strategic plan for producing affordable units, as well as acquiring properties suitable for
new construction, rehabilitation, or conversion opportunities. Abode Communities I Property & Asset
Management will conduct ongoing management, monitoring, and administration of affordable housing
units produced through these efforts, as well as manage Park Vista. Abode Communities I Resident
Services will provide its comprehensive onsite social services program, Beyond Homes, to residents of
the affordable housing.
Developer: Abode Communities
As the premier developer of affordable housing in Los Angeles County, Abode Communities has been
nationally recognized as an Affordable Housing Finance Top 50 Developer; as the leading provider of
Leadership in Energy & Environment Design (LEED) Platinum units in the State of California (U.S. Green
Building Council); 2018 Developer of the Year by Southern California Association of Nonprofit Housing
(SCANPH); and is the longest established affordable housing provider in Southern California.
Abode Communities understands the social, environmental, economic,
and physical issues often inherent in the process of bringing affordable and
supportive housing to fruition. As a result, the organization produces dynamic
and vibrant master -planned, mixed -use, and multifamily affordable residential
communities for economically diverse families, seniors, and special needs
populations such as Veterans, Survivors of Domestic Violence, and Transition
Age Youth.
The organization's experienced and dedicated acquisition and development
team members are experts in the execution of critical path activities required
to identify and acquire sites, secure land use approvals, obtain financing,
oversee construction activities, and successfully transition to the organization's
property and asset management teams.
Abode Communities takes a strategic approach to acquisitions, pursuing
a range of avenues to secure new opportunities including tapping into a
strong network of brokers who source both on- and off -market properties;
forming collaborative relationships with religious organizations, school
districts, community -based organizations and land trusts, and market -rate
and commercial development partners; and competing for publicly -owned
properties through Requests for Proposals/Qualifications. In the past five years
alone, Abode Communities secured a total of 19 properties resulting in the
development or preservation of 1,600 affordable units.
Abode Communities brings strong experience working with jurisdictions
to shape and implement Housing Elements and meet RHNA goals. Abode
Communities' leadership and Business Development staff have served on the
Housing Element task force for the City of Los Angeles in both the 5th and
6th cycles, providing strategic ideas for policies and programs to facilitate
affordable housing development, as well as supporting the site inventory
identification process. Abode Communities recently participated as a panelist
in a workshop series to help jurisdictions understand and implement recent
changes in Housing Element Law, providing its expertise in affordable housing developer's site
acquisition criteria to inform RHNA Site Inventory Lists. Finally, Abode Communities was recently
selected by the City of Indian Wells, to specifically help them meet their RHNA goals in the upcoming
6th cycle with a new affordable housing development.
Abode Communities will capitalize on the symbiosis between its real estate professionals and
architectural design studio to assist in vetting the physical feasibility of potential acquisitions such as
analyzing site conditions and identify constraints.
Architect: Abode Communities I Architecture
Abode Communities I Architecture will provide architectural design services to assist in vetting the
physical feasibility of potential acquisitions. The studio's design philosophy stems from the central
idea that architecture must inspire, provide comfort, and contribute to the betterment of the human
condition. Further, the studio is principled, progressive and innovative, all the while relying on
fundamental design to create architecture that is relevant in time, contextual within its surroundings,
and meaningful for its inhabitants. Abode Communities I Architecture also brings a strong commitment
to sustainability, having designed seven LEED Platinum and four LEED Gold affordable multifamily
projects since 2009.
In addition to the execution of master planning and architecture design services throughout
Abode Communities' real estate portfolio, Abode Communities I Architecture has collaborated with
similar community development organizations such as Mercy Housing, Cabrillo Economic Development
Corporation, PATH Ventures, L.A. Family Housing, Little Tokyo Service Center, and Skid Row Housing
Trust to achieve their community development visions.
Adams Terrace 86 tLoWor Unks
Property Manager: Abode Communities I Property Management
Abode Communities' property management services were introduced in 1998 in an effort to support
housing retention and improve the quality of life for residents. Today, Abode Communities continues its
tradition of resident investment by fostering the organization's housing and mixed -use developments
to become pillars of each community by maintaining properties as vibrant, connected spaces that
support each resident's emotional, physical, and financial ability to thrive.
Today, Abode Communities professionally manages more than 40 affordable residential communities
throughout Los Angeles County that are home to nearly 7,000 economically diverse people. In addition
to creating a high -quality standard of living, the organization's professionally trained and dedicated
property management staff members go above and beyond to establish meaningful relationships with
neighbors, local community groups, local civic leaders, and other community -based organizations to
strengthen neighborhoods, enhance livelihoods, and connect people and places.
Abode Communities offers a wide range of property
management services, including marketing and leasing;
screening and selecting tenants, including processing
and collecting rent; managing potential legal disputes
and providing litigation advice; managing the property's
financial feasibility; maintaining and repairing assets;
performance compliance inspections; and preparing
regulatory compliance reports, and collaborating with
Coordinated Entry System leads if applicable. These
services play a vital role to ensure the organization's
multifamily residential portfolio remains fiscally solvent
and in compliance with rent restrictions and regulations
from multiple funding sources and jurisdictions.
Please see Tab E. Experience for more details about
Abode Communities' property management and
affordability compliance experience and its procedures
that ensure high -quality property management.
Terra Bella, 65 Senior Units
Social Service Provider: Abode Communities I Resident Services
Abode Communities works to transform resident lives by empowering youth, building adult capacity,
creating linkages in communities, and stabilizing residents through its substantive onsite resident
services program, Beyond Homes.
Celebrating its 20th year in operation, Beyond Homes is offered at 23 locations serving some 5,800
people throughout Los Angeles County. Beyond Homes plays a critical to prevent homelessness,
stabilize residents in place, break the long-term cycle of poverty in families, and maintain high -
quality real estate assets. Complimentary programming includes and is not limited to: after -school
academic enrichment and college prep/planning assistance for youth; financial literacy, job -readiness,
parenting, and other capacity -building workshops for adults; 1:1 case management and referrals for
specialized services not offered by Abode Communities; resident meetings, resource fairs, community
beautification, gardening, and social connectivity; and crisis intervention services to meet basic needs.
If needed, Abode Communities will engage a third -party supportive services partner to better serve
higher acuity residents and people experiencing homelessness.
Financial Consultant: California Housing Partnership
California Housing Partnership (The Partnership) will serve as the team's financial consultant, drawing
from its considerable policy and financing experience to support the strategic planning effort, assist
in analyzing project feasibility at the acquisition stage, and provide critical expertise in securing
construction and permanent financing.
The Partnership creates and preserves affordable and sustainable homes for Californians with low
incomes by providing expert financial and policy solutions to nonprofit and public partners.
Since 1988, the Partnership's on -the -ground technical assistance, applied research, and legislative
leadership has leveraged more than $20 billion in private and public financing to preserve and create
more than 75,000 affordable homes.
The Partnership is recognized nationally as a leader in preserving at -risk subsidized apartments and
in the financial structuring of Low -Income Housing Tax Credit and tax-exempt bond transactions. The
Partnership is a 501(c)(3) public benefit corporation. Its Board of Directors is appointed by the governor
and state legislature and includes leaders from various sectors of the state's affordable housing
community.
Peep Expertise and Experience: The Partnership's technical expertise includes: 1) technical assistance
and training for local government housing agencies in rental housing finance underwriting and program
design, 2) multifamily financial consulting, in which the Partnership has assisted nonprofit and local
government sponsors to raise more than $6 billion in debt and public and private equity (through the
Low Income Housing Tax Credit Program) to finance more than 25,000 affordable homes, and 3) the
preservation of federally assisted housing, in which the Partnership has served as consultant on over
150 nonprofit, public agency, or resident acquisitions, which have resulted in the preservation of over
7,000 units of federally assisted housing at risk of conversion.
Affordable Housing Finance Program Knowledee: The Partnership assists clients in financial structuring
and preparing competitive funding applications for all types of public agency financing, including
tax-exempt bonds, 9% and 4% LIHTCs, LA County HOME & City of Industry, state Multifamily Housing
Program (MHP), Veterans Housing and Homeless Prevention (VHHP), Mental Health Services Act
(MHSA), CALHFA financing, Federal sources including HOME, McKinney, CDBG, Federal Home Loan
Bank AHP Program, Rental Assistance Demonstration and various HUD capital and subsidy programs,
as well as other local funding sources. Projects it assists range from large family new construction to
acquisition and rehabilitation of SROs for special needs residents.
Technical Assistance to Government Housing A encies: The Partnership regularly provides technical
assistance (TA) to public agencies involved in the financing and preservation of multifamily affordable
homes. Recent examples of the Partnership's TA work include:
• Input into the design of Project Home Key for the California Department of Housing and
Community Development;
• Development and implementation of a comprehensive affordable housing needs and strategy
annual report for the County of Los Angeles;
• Participation in the Committee to Save the Bay (CASA) process that resulted in a comprehensive set
of "three Ps" proposals that helped to frame the Legislature's work in 2018 and 2019;
• Participation in the Oakland Mayor's Housing Cabinet with a lead role in assessing displacement
risks to various low-income populations and developing strategies to address these risks;
• A detailed assessment of the displacement risk for the Metropolitan Planning Commission in key
Bay Area transit locations and developing recommended policy strategies;
• An innovative model for the City of Los Angeles Housing and Community Investment Department
to preserve the affordability of older tax -exempt -bond -financed properties with expiring regulatory
agreements; and
• Assistance to various state funding agencies to evaluate the at -risk status of applicants for
competitive financing programs wishing to preserve federally subsidized housing.
3. Staff Roles & Responsibilities
Abode Communities' approach to developing the strategic acquisition plan will be spearheaded by its
real estate division in partnership with its business development division. This process will be led by
Sara Tsay Vice President, Business Development with support from California Housing Partnership.
Once the strategic acquisitions plan is established, sites will be identified utilizing the plan's guiding
principles with respect to the City's RHNA needs.
Abode Communities will work with the City of El Segundo to prioritize target areas to develop
new affordable housing. Once these areas are established, Tsay will lead her staff to seek and vet
opportunities through a mix of on- and off -market acquisition strategies. Properties eligible for
entitlement fastracking and development incentives under existing state legislation will be prioritized
to ensure completion of the new units within the 6th RHNA cycle. The team will pursue three primary
acquisition strategies: 1) identification of publicly owned properties appropriate for multifamily
affordable housing development; 2) engagement of a network of brokers to identify and secure off -
market opportunities, including those that require land assembly; and 3) outreach to local community
organizations and institutional landowners to source ground lease and other partnership opportunities.
Tsay will collaborate with Paul Beesemyer, Director of Southern California for California Housing
Partnership, and his staff of financial consultants to analyze potential acquisitions through the lens
of financial feasibility. Tsay will present identified opportunities for go or no-go decisions to City
of El Segundo Staff and Abode Communities' business development team, which includes Tsay,
President & CEO Robin Hughes, COO Holly Benson, and Senior Vice President of Development Lara
Regus. Combined Hughes, Benson, and Regus have nearly 75 years of affordable housing real estate
experience.
After the team's collective decision to move forward with acquisition, Tsay will be responsible for
securing site control, conducting initial due diligence, negotiating necessary agreements (ie LOIs, PSAs),
and securing necessary financing for acquisition. Post site control, the project transitions to Senior
Vice President of Development Lara Regus and Senior Project Manager Brendan O'Donnell, who will
oversee all aspects of each project from the onset of predevelopment through operations. During this
time, Abode Communities will also parter with a trusted construction manager to review and make
recommendations for construction -related documents.
Throughout construction, O'Donnell will be responsible for engaging Abode Communities' property
and asset management teams to ensure a smooth transition into operations. As the project nears
construction completion, marketing and pre -lease up activities will begin under the leadership of Jan
Peters, Senior Vice President of Property & Asset Management, who brings more than 30 years of
experience in affordable housing operations. Upon receipt of a certificate of occupancy, Peters and
her team of property management, asset management, and compliance specialists will assume the
responsibility of ensuring the project remains financially and physically sound, and compliant with legal
and regulatory requirements.
4. Key Staff Resumes
Leadership
California Community Reinvestment
Corporation, Board Member
Robin Hughes
President & Chief Executive Officer
Robin Hughes is president and chief executive officer of Abode Communities,
a Los Angeles -based nonprofit service -enhanced affordable housing provider.
She has been actively involved in affordable housing and community
development for over 30 years and in her 24 years as leader of Abode
Communities, Hughes has transformed the organization into an Affordable
Housing Finance Top 50 Developer nationwide and the premier provider of
environmentally sustainable affordable housing in California.
Under Hughes' leadership, Abode Communities has developed nearly 50
affordable residential and mixed -use communities; created new affordable
homes for more than 11,000 California residents and provided a social safety
net through Beyond Homes, the organization's resident services program.
California Housing Consortium
Hughes is an industry leader in housing policy at the local, state and federal
Co -Policy chair
level. She serves or has served on numerous boards, task forces and advisory
Housing Partnership Network
bodies where she continues to advocate for resources, programs and policies
Board Chair
to support the production and preservation of affordable housing for low-
income residents.
The Community Development Trust
Board Member
Hughes was chair of the Affordable Housing Advisory Council for the Federal
UCLA Ziman Center Affordable
Home Loan Bank of San Francisco, a member of the JPMorgan Chase
Housing Advisory Council, Member
Community Advisory Board of Los Angeles, and has served on the board of
directors for organizations such as Southern California Association of Nonprofit
Housing, Low Income Investment Fund, Esperanza Community Housing
Education
University of Southern California
Corporation and Mercy Housing California.
Masters, Public Administration
Prior to joining Abode Communities, Hughes held positions in the private and
University of Southern California
public sectors including The Richmond Group of Companies, Citibank, the
Bachelors, Public Administration
Community Development Commission of the County of Los Angeles, and the
Office of the Mayor of the City of Los Angeles. Her experience is highlighted by
Harvard University
John F. Kennedy School of
four years as City Planning Commissioner for the City of Los Angeles.
Government Executive
Program Certificate
Hughes was recognized by Huffington Post as "Person of the Day and Women
in Business as Outstanding Nonprofit Director. Hughes was recognized by
Commercial Observer as Top 25 Real Estate Leaders in Los Angeles. She also
won Black Business Association's Executive Leadership Award and was featured
on the cover of National Real Estate Investor as "Champion of Affordable
abode
Housing."
communities
4. Key Staff Resumes
Leadership
Housing California,
Vice Chair of Land Use & Finance
Committee
Federal Home Loan Bank of
San Francisco, Affordable Housing
Advisory Committee
Southern California Association
for Nonprofit Housing,
Past President
Education
University of California, Los Angeles
Bachelors, Communication Studies
abode
communities
Holly Benson
Executive Vice President & Chief Operating Officer
Holly Benson is executive vice president and chief operating officer responsible
for the organization's real estate development, property management, and
resident service divisions. As such, she oversees the production of new
affordable housing; creation of new business opportunities; management of
existing real estate assets; financial and operational performance of Abode
Communities' real estate portfolio; and impact of Abode Communities'
resident services program, Beyond Homes. Benson serves an integral role in
operationalizing the organization's strategic plan to ensure the organization
meets and exceeds its strategic goals.
A 23-year veteran in the affordable housing industry, Benson's depth of
experience is underscored by her contribution to the development of more
than 1,000 affordable homes and the procurement of some $400 million in
loans, grants, and equity from both private and public sources throughout
California.
Benson is an esteemed affordable housing leader, often resourced as an
industry expert by organizations such as Housing California, Urban Land
Institute, Enterprise Community Partners, University of California, Los Angeles
School of Public Affairs, and University of Southern California School of Public
Policy. Benson is passionate about advancing affordable housing policy and
her expertise in the field has been featured on the Tavis Smiley Show, KNX
Broadcasting and KPCC Public Radio in Los Angeles.
Prior to joining Abode Communities, she served as housing developer at
Mercy Housing California responsible for all facets of project management, as
well as the procurement of future affordable housing opportunities. Benson
also worked for the County of Orange Housing and Community Development
Department, responsible for underwriting and recommending loans to
affordable housing developers, as well as shaped the County's community
policies.
4. Key Staff Resumes
Leadership
Southern California Association of
Nonprofit Housing
Board Member &
Policy Committee Member
Designations
U.S. Green Building Council
LEED Accredited Professional
Education
University of California, Los Angeles
Masters, Urban Planning
Claremont McKenna College
Bachelors, Economics
ab d
communities
Lora Regus
Senior Vice President, Development
Lara Regus is senior vice president of development responsible for the
oversight of new affordable housing production. As such, she identifies
a wide -range of financing to bring developments to fruition; oversees
predevelopment, construction and permanent financing activities; manages
relationships with lenders and investors; and manages and trains Abode
Communities' experienced and dedicated development team members. Regus
is also instrumental in engagement to increase public awareness and support
for affordable housing through education, policy and advocacy endeavors.
In her tenure with Abode Communities, Regus has contributed to the
development of more than 1,500 multifamily residential units yielding $400
million of real estate investment in California. Her in-depth experience at
Abode Communities includes successfully identifying and securing acquisition
opportunities as director, business development, as well as managing the
development process for a variety of affordable housing developments. Prior
to joining the organization in 2006, she served as a program associate at
California Community Foundation and an analyst at JPMorgan Chase.
Regus' commitment to environmentally sustainable affordable housing
has propelled Abode Communities to become the leading provider of
LEED® for Homes Platinum -rated units in the State of California. Regus is a
trusted resource on the subject of sustainability, as well as transit -oriented
development and has participated on various panels hosted by U.S. Green
Building Council, Southern California Association for Nonprofit Housing, Urban
Land Institute and American Planning Association. She continues to expose
environmentalism and transportation as a mechanism to deepen a projects'
value and direct impact to low-income communities.
Regus and her family live in El Segundo.
4. Key Staff Resumes
Leadership
City of Los Angeles 2021-2029
Housing Element Update Task Force
Member
Education
University of California, Los Angeles
Masters, Urban Planning
Brown University
Bachelors, Urban Studies
r6o-d--e-
Sara Tsay
Vice President, Business Development
Sara Tsay is vice president of business development responsible for identifying
and securing affordable housing and community development opportunities.
This includes managing Abode Communities' acquisitions; procuring joint -
venture partnerships; negotiating purchase and sale agreements; working
with consultants to define the development program and architectural design;
identifying acquisition and predevelopment financing; and providing executive
oversight of the business development team.
Tsay holds more than 11 years of real estate experience and most recently
served as strategy and development manager at The Walt Disney Company,
and as senior real estate negotiator at Target Corporation. Prior to that, Tsay
was lead project manager with Hollywood Community Housing Corporation
where she managed real estate development projects from concept and
acquisition through lease -up, including affordable housing, mixed -use, and
historic rehabilitation/adaptive reuse developments. She also served as a
project management associate with Abode Communities where she was
responsible for multifamily residential development from financing and
construction to transitioning from development to property management.
4. Key Staff Resumes
Credentials
U.S. Green Building Council
LEED Accredited Professional
Education
Bachelor of Science in Architecture,
University of Michigan
a ode
communities
Brendan O'Donnell
Senior Project Manager
Brendan O'Donnell is senior project manager responsible for managing all
phase of multifamily affordable housing development. O'Donnell has 10 years
of experience with identifying and purchasing land; securing entitlements;
working collaboratively with architects, contractors and other consultants;
securing necessary financing; overseeing design development and construction
activities, including community engagement; and converting projects to
permanent financing.
In addition to his depth of multifamily affordable residential experience,
O'Donnell currently leads Abode Communities in the administration of the
City of Los Angeles $401VIM HHH Housing Challenge award. Here, works to
standardize land acquisition parameters, streamline the planning/permitting
process with the City of Los Angeles, and define innovative modular
construction methodology to produce affordable and supportive housing faster
at a lower cost.
Prior to joining Abode Communities, O'Donnell served as the Director of
Business Development at Skid Row Housing Trust where he led the TRUST's
acquisition efforts for new affordable multifamily residential developments.
Relevant Work - Under Construction
• Six Four Nine Lofts, Los Angeles (55 units + 25,000 sf healthcare clinic)*
• FLOR 401 Lofts, Los Angeles (99 units)*
• SP7, Los Angeles (100 units + 2,000 sf retail space)*
Relevant Work - Predevelopment
Grandview Apartments, Los Angeles (100 units)
Veteran Commons, Downey (100 units)
The Beacon (91 units)
* Project completed under the employ of another firm
4. Key Staff Resumes
Paul Beesemyer
Director, Southern California
Paul Beesemyer has been serving CHP for more than two decades, overseeing
the Partnership's Southern California housing finance consultants and assisting
its nonprofit housing community and public agencies in the areas of affordable
housing finance, real estate development, preservation of at -risk housing, and
general housing policy. His career in housing began in 1996 and since then,
he has conducted numerous seminars and trainings and authored several
publications, including The Tax Credit Turns Fifteen, a risk analysis of California's
early Tax Credit portfolio. He is knowledgeable in the use of a wide range of
community development financing tools, including Low Income Housing Tax
Credits, tax-exempt bond financing, and a variety of public funding programs
administered at the local, state, and federal levels.
Prior to joining CHP, Beesemyer developed affordable housing as senior project
manager for Abode Communities, where he managed affordable housing and
community development projects serving families, seniors, and various special -
needs populations. He earned a Bachelor of Arts in Landscape Architecture from
the University of California, Berkeley.
California
Housing
Parinership
4. Key Staff Resumes
Education
Rutgers University
Masters of Social Work (MSW)
Antioch University
Masters, Education
Melbourne University
Bachelor of Arts
Harvard Kennedy School Executive
Education, Achieving Excellence in
Community Dev. Certification
abode
communities
Jan Peters
Senior Vice President, Property & Asset Management
Jan Peters is senior vice president of property management responsible for
the oversight and management of Abode Communities' affordable residential
portfolio, which includes 41 affordable housing developments with 2,678
homes that serve nearly 7,000 low-income people throughout Southern
California.
Peters is an established affordable housing management professional with
nearly 30 years of property management experience. She is responsible for
developing and maintaining property operation and capital improvement
budgets; monitoring financial variance, vacancy and delinquency reports;
overseeing and approving legal actions; responding to Fair Housing
concerns; preparing contracts; and supervising, hiring and training property
management staff.
Peters' tenure in affordable housing property management includes serving as
executive vice president and chief operating officer of Eden Housing, a position
she held for more than a decade. She was responsible for the oversight of the
organization's residential portfolio consisting of 5,000 residential units and
40,000 square feet of commercial space, as well as oversight of the finance,
human resources, administration, and resident services departments. Prior to
joining Eden Housing, Peters served as president of WNC Management, Inc.
She is a licensed real estate broker in the State of California and is past
president of the Affordable Housing Management Association of Northern
California, Nevada, and Hawaii. She is also co-chair of the National Affordable
Housing Management Association (NAHMA) Credential Review Board and is a
National Affordable Housing Professional — Executive (NAHPe).
i
E. Development &
Management:
Experience
211
ft
1. Project Experience (#1)
Vista del Mar & Camino del Mar, Wilmington
Once a distressed post-war public housing project, master planning of
the Dana Strand Revitalization included a community outreach process
involving the Council Office, Resident Advisory Council, Los Angeles Police
Department, neighbors and community stakeholders. Phases I and 11,
developed in partnership with Mercy Housing, included a robust mixed -
income, mixed -use community consisting of 120 garden -style affordable
family homes (Harbor View Place); 116 affordable family townhomes
(Wilmington Townhomes); and a 10,000 square foot community center
operated in partnership with Providence Little Company of Mary Medical
Centers.
Phase IV, Vista and Camino del Mar, fulfill the development team's 15-
year vision for this 20.7-acre public housing site. Abode Communities and
its development partner, transformed eight parcels of vacant land into
176 service -enhanced, LEED® for Homes Gold -rated affordable homes,
including nearly 35,000 square feet of open and recreational space.
Residential Financing
4% Low Income Housing Tax Credits
Tax -Exempt Bond
Housing Authority of the City of Los Angeles Ground Lease
Project -Based Section 8
Scope
174 (1-, 2-, 3- & 4-bedroom units)
2 (2-bedroom manager units)
Surface parking
Schedule
Completed June 2018
22 months
Population
Families
Management/Services
On -site property management
and resident services provided by
Abode Communities
Affordability
30 - 50% AMI
Amenities
Landscaped courtyards
Edible community gardens
Playgrounds
Secure bicycle parking
Two resident centers
Laundry and trash
1. Project Experience (#2)
F7M
Terra Bella, Bell Gardens
Terra Bella is the third affordable housing development in the City of Bell
Gardens, boosting the City's affordable rental supply by 31%. In addition to
providing permanent, deeply affordable homes via Project -Based Section
8, Abode Communities enriches resident quality of life through an array of
substantive resident services including case management, advocacy coun-
seling, and recreational activities.
Seniors also enjoy an abundance of onsite healthy living amenities,
including a central courtyard with fountain that connects to an outdoor
mind/body fitness area, edible garden and shaded gathering spaces.
What's more, Terra Bella boasts a LEED° for Homes Platinum rating, en-
suring that seniors can age independently in place while enjoying healthy
homes with improved indoor air quality and lower utility costs.
Financing
• 4% Low Income Housing Tax Credits
• Tax -Exempt Bond
• Los Angeles County Development Authority HOME & City of Industry
City of Bell Gardens
• Federal Home Loan Bank of San Francisco Affordable Housing Program
• California Solar Initiative Rebate
Scope
64 (1-bedroom units)
2 (2-bedroom units)
1 (2-bedroom manager unit)
Surface parking
Schedule
Completed April 2013
16 months
Population
Seniors
Management/Services
On -site property management
and resident services provided by
Abode Communities
Affordability
30 - 60% AMI
Amenities
Landscaped courtyard
Edible community garden
Free Wi-Fi
Outdoor fitness circuit
Resident center
Laundry and trash
1. Project Experience (#3)
Selma Community Housing, Hollywood
Selma Community Housing is Abode Communities' second joint -use af-
fordable housing development with the Los Angeles Unified School District
(LAUSD). Built in an effort to improve access to affordable housing, pro-
mote employee retention and balance life/work, Selma prioritizes homes
for working families and LAUSD employees.
This LEED° for Homes Platinum -rated development is located just three
blocks from Metro Red Line Hollywood and Highland light rail station.
Its transit -rich program includes 67 residential parking spaces, short-/
long-term bicycle parking, and 50 LAUSD staff parking spaces that provide
parking for the adjacent Selma Elementary School by day and supplements
Hollywood's limited public parking supply by night.
Residential Financing
• 9% Low Income Housing Tax Credits
California Department of Housing & Community Development
TOD Program
City of Los Angeles Housing + Community Investment
Department CRA/LA
Federal Home Loan Bank of San Francisco Affordable Housing Program
L.A. Unified School District Ground Lease
Scope
65 (2- & 3-bedroom units)
1 (2-bedroom manager unit)
Structured residential parking
Structured District parking
Schedule
Completed September 2016
21 months
Population
Families
Management/Services
On -site property management
and resident services provided by
Abode Communities
Affordability
30 - 60% AM I
Amenities
After -school program room
Computer lab
Landscaped courtyard with tot lot
Resident center
Rooftop terrace
Laundry and trash
1. Project Experience (#4)
Hudson Oaks, Pasadena
Hudson Oaks was originally built in 1971 and rendered uninhabitable after
a devastating fire in 2005. In a major rehabilitation and modernization,
Abode Communities accommodated provisions of a grandfathered zoning
clause that required maintaining the existing building's floor plan to
prevent a 35% reduction of total units. Affordability is maximized and
resident quality of life is improved by combining Abode Communities'
high -quality standard of living with Project -Based Section 8; reconnecting
the site to its surrounding neighborhood and adjacent Washington Park;
and providing on -site resident services for active, independent and healthy
aging. This LEED° for Homes Platinum -rated development operates 56%
more efficiently than California Title 24 standards, providing substantial
utility cost savings directly to residents. Sustainability highlights include
a bioswale for site drainage and a photovoltaic system that feeds all
common area electricity.
Financing
• 4% Low Income Housing Tax Credits
• Tax -Exempt Bond
• 1602 Grant
• City of Pasadena Housing
• Pasadena Housing Authority Project Based Section 8
• Los Angeles County Development Authority
• Federal Home Loan Bank of San Francisco Affordable Housing Program
• Private 3rd Party Equity
• California Solar Initiative and California Energy Efficiency Rebates
Scope
44, (1-bedroom units)
1 (2-bedroom manager unit)
Surface parking
Schedule
Completed March 2012
14 months
Population
Seniors age 62 and over
Management/Services
On -site property management
and resident services provided by
Abode Communities
Affordability
At or below 30% AM
Amenities
Private entrance to a public park
Edible landscaping
Free Wi-Fi
Landscaped courtyard
Private balconies and porches
Laundry and trash
Resident center
1. Project Experience (#5)
Westmont Vista, Los Angeles
Completed in October 2020, Westmont Vista transformed a vacant,
urban infill site adjacent to Los Angeles Southwest College into a vibrant
community for 39 families and Transition Age Youth (young adults
emancipated by the foster care system who are experiencing
homelessness).
Situated in the West Athens neighborhood of unincorporated
Los Angeles County, the site is in close proximity to multiple transit lines,
grocery stores, a childcare center, and is sited among a variety of other
community -serving amenities, making this an ideal location for residents
to thrive. The project is expected to achieve LEED® for Homes Gold rating.
Residential Financing
• 9% Low Income Housing Tax Credits
Los Angeles County Development Authority Project Based Section 8
Los Angeles County Development Authority NOFA
• Federal Home Loan Bank of San Francisco Affordable Housing Program
Scope
38 (1-, 2-, & 3-bedroom units)
1 (2-bedroom manager unit)
Structured parking
Schedule
Completed October 2020
20 months
Population
Families and Transition Age Youth
experiencing homelessness
Management/Services
On -site property management
provided by Abode Communities,
Supportive services provided by
St. Joseph Center
Affordability
At or below 30% AMI
Amenities
Landscaped courtyard
Edible community garden
Laundry and trash
Playground
Resident center
Secure bicycle parking
2. Pipeline
Despite the current health crisis and pending shifts in economic investment, the organization's development
pipeline is robust with more than 1,200 affordable/supportive homes and 72,000 square feet of community -serving
retail space. Please see below for a pipeline project details, including images on the following page.
total/ -
population/
affordable/
community
ground
community -
name
complete
affordability
supportive units
engagement
lease
serving retail
anticipated financing
Workforce
Private Equity, County of Santa
231 Grant
Jun-24
(Teachers)
110/109/0
Yes
Yes
1,300 sf
Clara, City of Palo Alto,
(cafe)
30-120%AMI
Facebook, School Districts
Tax Exempt Bond, LACDC,
Adams
Apr 22
Seniors
86/41/43
Yes
No
N/A
PBV Section 8, HCIDLA HHH,
Terrace
30-60% AM I
HCD-AHSC & MHP
4% LIHTC, HCIDLA HHH,
The
Apr-23
Homeless
91/0/90
No
No
No
HCD-MHP, No Place Like
Beacon
<= 30% AM
Home, PBV Section 8
Families,
4% LIHTC, HCD-MHP&IIG,
The
Sept-23
Transition
57/28/28
Yes
No
1,000
LACDA, PBV Section 8,
Carlton
Age Youth
(local)
(loca
()
FHLB-AHP
Families,
4% LIHTC, HCD-MHP&IIG,
Central
Jun-23
Transition
59/29/29
Yes
No
No
LACDA, PBV Section 8,
Ave
Age Youth
FHLB-AHP
Families,
4% LIHTC, HCIDLA,
Chavez
Mar-24
M/P Disabled
60/23/36
Yes
Yes
sf
Metro, HCD-MHP,
Pickett
30-60%AMI
(groce
(grocery)
FHLB-AHP
4% LIHTC, HCIDLA HHH,
Grandview
Jun-23
Families
100/45/54
Yes
No
N/A
Tax -Exempt Bond,
30-60%AMI
HCD-M H P
4% LIHTC, HCIDLA HHH,
La Veranda
Sept-22
Families
77/38/38
Yes
Yes
8,000 sf
HCD- MHP & IIG, Metro,
30-60%AMI
(local)
FHLB-AHP, LACDA
4% LIHTC, HCD-MHP,
Ind
Indian
Nov-22
Families
100/99/0
Yes
Yes
No
Indian Wells LMIF, FL-
Wells
30-80%AMI
HB-AHP, PBV Section 8
2,900 sf
4% LIHTC, LACDA
Veteran
Oct-24
Veterans
100/49/50
Yes
Yes
(Workforce
HCD-AHSC, VHHP,
Commons
30-60%AMI
Hub)
PBV VASH Section 8
Families
4% LIHTC, HACK,
Villa Verde
May-23
30-60%AMI
152/150/0
Yes
Yes
No
PBV Section 8, State LIHTC
2. Pipeline
AP:4 if
From Top Left
Adams Terrace, The Beaccon,
Indian Wells, The Carlton, Villa Verde,
f ! 14 Chavez Fickett, Veteran Commons,
La Veranda
z
I�
4,6
3. Asset Management & Regulatory Compliance
Abode Communities' affordable housing portfolio consists of 41 properties with nearly 2,700 affordable
units, generating more than $29 million in annual revenue. Under the direction of the Senior Vice
President, Property & Asset Management, the Assistant Director, Asset Management manages the
financial and physical well-being of the portfolio, while the Director, Compliance oversees compliance
with local, state and federal regulatory requirements.
Direct reports to the Assistant Director, Asset Management include: a Senior Asset Manager, a Junior
Asset Manager and an Asset Management Associate. As a team they oversee the operations and
management of the portfolio ensuring the properties' physical and financial well-being and compliance
with legal and regulatory requirements. Specifically, the asset management team reviews and
analyzes Abode Communities' portfolio ensuring that the properties' performance meet or exceed
financial expectations, are physically maintained at or above company standards, and comply with
all regulatory requirements. Working with the Senior Vice President, Property & Asset Management
and the Director of Facilities, the asset management team is charged with maintaining, improving and
providing solutions regarding the physical health of the assets; negotiating and executing Year 15 exits
for LIHTC partnerships; and collaborating with Abode Communities' Real Estate Division to evaluate
debt restructuring or refinancing at various stages of the property's life cycle and during an analysis for
re -syndication.
The asset management team also works in collaboration across divisions within other
Abode Communities departments, to achieve the following:
• Property Budgets: develop, review and present to the Senior Vice President, Property & Asset
Management, the Executive Management Team and the Board of Directors for approval, the annual
property budgets
• Variance Analysis: conduct monthly variance analysis to understand and explain both project specific
and portfolio wide trends, including analysis and proposed resolutions to any portfolio issues
• Capital Improvement Plans: maintain capital improvement plans and provide solutions to capital
improvement needs through management of reserves, securing soft funding through public
sources, restructuring of existing debt, seeking refinance opportunities, and ensuring timely
approval of bid packages for capital improvements
• Insurance Coverage: ensure that limits of insurance coverage comply with minimum requirements
provided for in all agreements (i.e., partnership, lender, regulatory, etc.) including but not limited to
the following policies: Property, Liability, Workers' Compensation
Direct reports to the Director, Compliance include a Senior Compliance Specialist, a Compliance
Specialist and a Junior Compliance Specialist. Together this team ensures Abode Communities'
entire portfolio, remains in compliance at all times with the requirements of various local, state and
federal agencies including, but not limited to, the California Tax Credit Allocation Committee (TCAC),
the California Debt Limit Allocation Committee (CDLAC), the California Department of Housing &
Community Development (HCD), the US Department of Housing & Urban Development (HUD),
the County of Los Angeles Community Development Authority (LACDA), and the Housing Departments
and Housing Authorities of various cities including Los Angeles, Pasadena and Long Beach.
To ensure compliance, the team maintains current and accurate affordability mix abstracts for all
properties in the portfolio and works closely with the Property Supervisors and Property Managers
to ensure actual tenant income and rent levels meet eligibility requirements. This team also conducts
tenant file reviews, audits, onsite file reviews, tracking and completing certifications, and input into
property management software.
4. Property Management
Abode Communities' commitment to best -in -class property management and compliance is evidenced
by adopted formal goals and objectives as part of its current strategic plan. Under the leadership of
Jan Peters, Senior Vice President of Property & Asset Management, and with the goal to sustain high
quality, healthy communities for residents, Abode Communities implements clear and consistent
operations expectations and management practices to ensure properties function at the highest level
of financial, physical, compliance, and tenant relations.
A key component of Abode Communities' excellence in property and asset management is adherence
to measurable performance standards for each property in the portfolio. Properties and staff are
measured on the following Key Performance Indicators (KPIs):
Occupancy 98.5% or Higher
Rent and Deposit Collections 100% rent collected by the 6th day of each month
No more than 2% in monthly current delinquencies
Full move -in deposit collection
Vacancies 5 Days or less for unit readiness; 10 Days or less for unit turn
around
Operating Expenses Within 5% of Board Approved Budget
Monthly variance reporting to Asset Management
Annual Certifications Completed/Approved/Signed within 30 Days of Effective Date per
Annual Recertification Schedule
Reporting Requirements Timely submission of all reports requested
Maintenance & Work Orders Preventative Maintenance conducted on a monthly basis
All work orders must be in writing and signed by resident
Emergency work orders addressed immediately within 24 hours
Non -emergency work orders addressed within 48-72 hours
Resident Complaint Responses Addressed within 10 business days, from receipt to final response
Ispection/Audit Responses Addressed within the sooner of 15 to 30 days of receipt from
Agency in writing or Agency deadline
Unit Inspections Conducted Semi-annually: March -April and September -October
Identified repairs to be addressed within 60 days of inspection
Property Physical Inspections
Move -Outs
Resident Lease Violations
Compliance
Conducted daily by resident manager
Conducted semi-monthly by regional property supervisor
Finding must be in writing with a completion target and signed by
both property manager and property supervisor
Within 5 days of move -out: conduct move -out inspection, assess
damage, and complete a Move Out Report. Send to Regional
Property Supervisor for review and to Accounting Department for
_processing _
Issue to tenant within 48 hours of incident. Regional Property
Supervisors must review before serving resident.
Successfully pass all external audits and inspections, and remain
100% in Compliance at all times. Examples include but are not
limited to:
TCAC funded properties: achieve No Findings on all
inspections and never receive an 8823
HUD funded properties: achieve a minimum REAC Score of 93
Achieve a minimum of "Satisfactory" on all Management and
Occupancy Reviews
Regional Supervisors work directly with site -based Property Managers to regularly review and report
on individual property performance around these KPIs. Property Managers and Regional Supervisors
are evaluated on their success in achieving these goals as part of their annual performance evaluations.
To further ensure accountability the asset management team reports on the performance of the
portfolio to senior management and the Board of Directors on a quarterly and annual basis. Reporting
is conducted through the Portfolio Performance Report, which measures each property by the
following three Performance Indicators:
Financial — Economic health is evaluated and scored using a number of economic ratios including:
Debt Service Coverage; Net Operating Income Actuals to Budget; and Expenses to Operating Re-
serve Balance.
Physical — Physical Health is evaluated through the combination of a Capital Needs to Replacement
Reserve Ratio and on -site inspections by the asset management team.
Compliance —The Compliance Indicator evaluates each property's findings, if any, as well as flags
any conditions that could warrant future findings.
Abode Communities' Strategic Plan's Annual Work Plan sets goals for minimum ratings for each of
the above indicators. As with the KPIs, these organizational goals are also memorialized and reviewed
with each staff member of the asset management and compliance teams as part of their individual
performance goals.
A regularly updated Policies and Procedures Manual further ensures consistency of operations across
the entire Abode Communities portfolio. The P&P Manual articulates authority and roles across staff,
establishes clear decision -making roles and procedures, and incorporates processes to minimize cost
inefficiencies and maximize operations. To ensure the P&P Manual remains a living document adhered
to by staff, Peters conducts quarterly portfolio meetings attended by the entire property management
team, with agenda items drawn from the P&P Manual, including roll out of new initiatives, soft skills
trainings, team building, transmission of information, budget preparation, variance reporting, and
compliance.
Finally, Abode Communities develops accountability for its property and asset management services by
measuring resident satisfaction. It conducts post -occupancy evaluation with a representative sample
of residents within 12 months of every new building lease -up, and it conducts annual resident surveys
at all of its properties to identify areas for improvement and to measure and report impact of quality
housing on residents' lives.
5. Jurisdictions Similar to El Segundo
Abode Communities has broad experience working in a variety of communities throughout Los Angeles
County, many of which share similarities with El Segundo in terms of size, residential scale, and scarcity
of developable land.
In the City of Signal Hill, which is similar in size and population to El Segundo, Abode Communities
transformed and revitalized the Las Brisas neighborhood with two phases of affordable housing
development, as well as a child care center and community park. In this relatively small city with
limited land acquisition opportunities, Abode Communities expanded affordable housing opportunities
through the Phase I purchase and rehabilitation of 23 four-plex homes and new 0.5-acre public park,
followed by the Phase fl development of 60 new affordable family homes across the street. This phased
approach overcame the challenge of limited land opportunities and resulted in 152 homes that will
remain affordable in perpetuity.
Abode Communities also has extensive experience working in the South Bay neighborhood of
Wilmington. Similar to El Segundo, Wilmington has a tight -knit, lower -density residential community
with adjacent industrial uses. Over a period of 15 years, Abode Communities and its development
partner worked collaboratively with the Wilmington community to progressively transform an
underutilized public housing development into a mixed -income, mixed -use community. Abode
Communities was mindful of keeping the new construction to a scale appropriate to the adjacent
single-family neighborhood by incorporating a mix of housing types and architectural styles, all with a
lower -density community scale. Abode Communities also conducted extensive and ongoing community
outreach to gather and address concerns, as well as build support for the four -phased master planned
community.
Although larger than El Segundo in terms of land area and population, the City of Pasadena shares
many of the challenges to developing affordable housing, including limited available developable
land and high acquisition prices, as well as mixed community support of new development. Abode
Communities has successfully developed four projects in the community totaling 236 units through
close collaboration with the City of Pasadena to identify and partner on the acquisition of new
opportunities. At Hudson Oaks, Abode Communities seized on the opportunity to acquire an
abandoned building that had been severely damaged in a fire and stood vacant for several years.
Located within a highly engaged historic landmark district, Abode Communities' collaborative approach
to community engagement and development was critical in gaining support for the project.
6. Team Information
Abode Communities
Length of time in business:
Ownership structure:
Location of principal offices:
Location of office providing services
California Housing Partnership
Length of time in business:
Ownership structure:
Location of principal offices:
Location of office providing services:
52 years
501(c)(3) nonprofit social enterprise
Los Angeles
Los Angeles
32 years
501(c)(3) public benefit corporation
San Francisco
Los Angeles
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F. Financial Capability
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1. Capacity
As one of the largest and most successful developers of affordable housing in Los Angeles County,
Abode Communities has the financial skill and capacity to secure the equity and financing required
to acquire and develop affordable housing to support the City of El Segundo in meeting is affordable
housing goals. Over its more than fifty year history, Abode Communities has leveraged public and
private sources to invest more than $645 million in promoting the social, economic, and physical
transformation of underserved communities throughout Los Angeles County.
Both Abode Communities and financial consultant California Housing Partnership are active
stakeholders in discussions about public funding priorities and regulations for county and statewide
programs. The team will bring the high level of expertise and insight gained from this participation
to its strategic planning efforts. Experience with securing specific sources of financing includes the
following:
Acquisition & Predevelopment Funding
Abode Communities has long-established relationships with Community Development Financial
Institutions (CDFIs) that provide acquisition loan products specifically tailored for affordable
housing development, including Century Housing, Low Income Investment Fund, Enterprise, and
the Corporation for Supportive Housing. Abode Communities' nonprofit status facilitates access to
more favorable loan terms from these lenders' various programs. In the past five years alone, Abode
Communities has utilized Golden State Acquisition Fund (GSAF), the Los Angeles County Housing
Innovation Fund (LACHIF), Supportive Housing Loan Fund (SHLF), New Generation Fund, and the Metro
Affordable Transit Connected Housing (MATCH) program to acquire new properties for rehabilitation or
new construction.
Abode Communities further supports its acquisition and predevelopment activities through its own
Abode Communities Housing Fund (ACHF). In 2010, 2017, and 2019 Abode Communities received
a combined total of $7.85 million in Capital Magnet Fund (CMF) Grants that were used to establish
the ACHF. Since that time these funds have leveraged other enterprise level funds, which collectively
have been used to advance the organization's affordable housing pipeline through the provision of
acquisition and predevelopment loans on Abode Communities' development projects. Altogether, the
ACHF has supported the development or preservation of 930 units of affordable housing over the past
10 years.
Conventional Debt and Equity
Abode Communities has extensive experience securing conventional mortgages to finance construction
and permanent operations, with mortgages financing 79% of the housing projects within its current
residential portfolio. Abode Communities' banking and investor relationships include Bank of America,
Wells Fargo, Citibank, JPMorgan Chase, Union Bank, U.S. Bank, National Equity Fund, and Enterprise
Community Partners, among others. These strong relationships have helped Abode Communities
consistently weather market uncertainties throughout its history, ensuring the organization's continuing
success bringing its development projects to fruition.
Low Income Housing Tax Credits
Abode Communities is a leader in competing for 4% and 9% Low Income Housing Tax Credits (LIHTC).
The organization was the first in the County of Los Angeles to procure funding from the LIHTC program
more than 30 years ago. Today, the tradition continues with the majority of Abode Communities'
housing developments funded through the LIHTC program.
In recent years, the organization has closed on both 4% and 9% LIHTC transactions with Wells Fargo,
who provided $1.16 per credit resulting in nearly $37.0 million in equity investment for 140 affordable
homes in South Los Angeles. In June 2018, just a few months post -tax reform, the organization's
Westmont Vista project received a $1.4 million Federal Tax Credit Award for 39 supportive homes for
families and Transition Age Youth in Los Angeles, resulting in a $13.7 million equity investment at a
price of $1.015 per credit.
Despite the downward trend in the tax credit market post tax reform and further downward
pressure due to the current downturn, Abode Communities continues to outperform its conservative
underwriting, highlighting the strength of its long-term relationship with key investors. Abode
Communities recently received bids ranging from $0.92 to $0.96 per credit for a new family
development in the Boyle Heights neighborhood of Los Angeles.
Abode Communities has also experienced success securing enhanced state tax credits, a relatively
new source of additional equity for affordable housing. In a recent highly competitive tax credit round,
Abode Communities secured a total of $5.2 million in tax credits, including $2.9 million in enhanced
state credits for a senior development expected to begin constructed in late 2020.
Tax Exempt Bond Allocations
In conjunction with its success in obtaining 4% tax credits, Abode Communities has a long history of
securing California Debt Limit Allocation Committee (CDLAC) bond allocations, and successfully closing
on these transactions with key government partners. The organization has secured bond allocations
for projects in a wide range of jurisdictions throughout the County, such as Long Beach, Pasadena,
Bell Gardens, City of Los Angeles, and Unincorporated LA County. Despite the increasingly competitive
landscape for tax exempt bond allocation, Abode Communities successfully secured two allocations
totaling $66.1 million in 2020, which will support the construction of 88 units of senior housing and 77
units of family housing.
Local Funding
Abode Communities has a long history of partnership with local governments having secured capital
funding from the County of Los Angeles as well as numerous cities such as Bell Gardens, Long Beach,
Los Angeles, Pasadena, and Signal Hill. Funding sources include a mix of general funds, tax increment
funds, in lieu fees and Federal CDBG and HOME funds administered by localities. In LA County funds
alone, it has secured funding for 12 residential and mixed -use projects totaling $35.1 million.
State Funding
Abode Communities has successfully secured funding from a variety of California
Department of Housing and Community Development programs including: Affordable Housing &
Sustainable Communities; Infill Incentive Grant; Multifamily Housing Program; and Transit Oriented
Development. Most recently, in early 2020 Abode Communities was awarded over $24 million in State
MHP funds for two of its projects in Los Angeles County.
Federal Operating Subsidies
In addition to securing federal funding that is administered by local governments, Abode Communities,
in partnership with entities like the Housing Authority of the City of Los Angeles, the Los Angeles
Communities Development Authority, and the U.S. Department of Housing & Urban Development,
manages some 723 units of housing that is publicly subsidized housing through the Project -Based
Section 8 (PBV) and Veterans Affairs Supportive Housing (VASH) programs. Abode Communities will
soon be adding an additional 38 voucher -supported units at a recently completed supportive housing
development and has commitments for an additional 135 PBVs for three projects anticipated to begin
construction in 2021.
As turnkey development partner, Abode Communities leveraged its partnerships to secure 283 Project -
Based Section 8 Vouchers for the renovation of owner/operator American Gold Star Manor, whose
21.7-acre housing campus featuring 348 affordable homes for seniors and veterans in Long Beach
completed in January 2019.
Private and Philanthropic Capital
In addition to its experience in bringing private equity to LIHTC developments, Abode Communities has
recently secured commitments for private capital from Facebook for a 110-unit affordable workforce
development in Palo Alto in collaboration with Santa Clara County and multiple public school districts.
This type of capital will allow the project to provide workforce housing for a mixed -income population
serving households up to 120% of area median income. Abode Communities also has deep experience
in raising philanthropic capital to invest in affordable housing and community facilities. Most recently,
the organization raised and invested just under $5 million in private foundation capital grants into its
mixed -used development, Rolland Curtis Gardens.
2. References - Public Agencies
(213) 252-1810
Housing Authority of the
Doug Guthrie,
Vista & Camino del Mar
douglas.guthrie@hacia.org
City of Los Angeles
President & CEO
City of Los Angeles Housing
Ann S
(213) 808-88
& Community Investment
aM'
General l Manager
Selma Community Housing
ann.sewill@lac ity.org
Department
Los Angeles County
Lynn Katano,
Hudson Oaks, Terra Bella,
(626) 586-1806
Development Authority
Director
Westmont Vista
Lynn.Katano@lacda.org
L.A. Unified School District Krisztina Tokes,
Director
City of Pasadena William Huang
Director
CA Housing & Community Jennifer Seeger
Development Dept. Deputy Director
2. References - Debt & Equity
Selma Community Housing (2130 241-4213
kristzina.tokes@lausd.net
Hudson Oaks (626) 744-8300
whuang@cityofpasadena.net
Selma Community (916) 263-6928
Housing, Westmont Vista jennifer.seeger@hcd.ca.gov
Wells Fargo (Debt) Ken Sofge Hudson Oaks,
Senior VP Westmont Vista
Wells Fargo (Equity) Tim McCann Westmonth Vista
California Community Mary Kaiser,
Hudson Oaks,
Reinvestment Corp. President & CEO
Westmont Vista
Richard Gerwitz,
Vista & Camino del Mar,
Citi Community Capital
Managing Dir.
Terra Bella
Union Bank Perica Bell, Selma Community
VP, SoCal Market Housing, Terra Bella
U.S. Bank
Sebastian Vista & Camino del Mar
Glowacki
(213)614-4018
kenneth.sofge@wellsfargo.com
(415)975-6334
tim.mccann@wells fargo.com
(818) 550-9801
mary.kaiser@e-ccrc.org
(213) 486-7138
richard.gerwitz@citi.com
(310) 551-8964
perica.bell@unionbank.com
(303) 585-4230
sebastian.glowacki@usbank.com
3. Financial Statements 2019-2018
Annual Financial Statements are included in the Appendix.
4. Loan Default
No member of Abode Communities' team has ever defaulted on its financial obligations, has had
developments that were foreclosed upon, or has filed bankruptcy.
5. Legal Action
In the ordinary course of its business as a developer, owner, and manager of multifamily affordable
housing projects, within the past five years Abode Communities has been involved in limited legal
actions, all of which were covered by insurance and/or resolved without material impact to Abode
Communities. The following is a list of ongoing litigation matters:
Independent Living Center of Southern California. et al. Plaintiffs, vs. City of Los Angeles. Community
Redevelopment Agency of the City of Los Angeles (January 13, 2012), and over 60 other entities that
are property owners (three Abode Communities limited partnerships included), Defendants. Case
number CV 12-0551 SJO (PJW). US District Court for the Central District of California (Western Division).
Three limited partnerships in which Abode Communities is the general partner, as well as over 60 other
housing property owners with funding from the Community Redevelopment Agency of the City of Los
Angeles (CRA), were listed as nominal defendants in the lawsuit brought against the City of Los Angeles
and the Community Redevelopment Agency of the City of Los Angeles by the Plaintiffs: Independent
Living Center of Southern California, Fair Housing Council of San Fernando Valley and Communities
Actively Living Independent and Free. The complaint alleges that CRA engaged in a pattern and practice
of discrimination by failing to ensure apartment complexes that were funded with CRA funds were
accessible to people with disabilities. Abode Communities maintains its position of no wrongdoing.
Further it does not anticipate any material monetary cost, physical corrections or mitigations.
Ramos, et al vs. Clark Residence Ltd. Partnership, Los Angeles Superior Court._ Boilerplate habitability
lawsuit filed against Clark Residence, LP on December 22, 2017. A subsequent retaliation lawsuit was
filed by the same plaintiffs on June 21, 2018 claiming site staff "retaliated against them" by requesting
inspections and standard paperwork. Abode Communities contends that both suits are unwarranted.
Defense Counsel is working on a stipulated effort to dismiss the retaliation case and have the claims
folded into the habitability case. This matter is covered by insurance and is not expected to have a
material financial impact on the organization.
Naima Smith et a[ v. Abode Communities Los Angeles County Superior Court. Eight plaintiffs allege they
were not offered the opportunity to receive a copy of the consumer report ordered by the company
during the application process. Currently, amount and specific basis for damages is unknown.
Abode Communities contends the claims are unwarranted and defense for this matter is covered by
insurance. This case is not expected to have a material financial impact on the organization.
Subcontractor vs. Westport Construction, imagine Village. A subcontractor filed a claim against general
contractor Westport Construction and the Limited Partnership that owns the Imagine Village project.
The claim is related to retention that has not yet been paid to the subcontractors. Because the general
contractor has not yet submitted the retention pay application to ownership, Abode Communities
maintains its position of no wrongdoing. The delay in submission of the retention pay application is
due to negotiations between the general contractor and the owner regarding numerous change orders
submitted after Certificate of Occupancy was obtained. The claim is expected to be resolved/withdrawn
upon payment of retention in the next two months now that the change order negotiations have been
completed. The claim will not materially impact Abode Communities.
G. Conflict of Interest
Within the past two years, no member of the respondent's team staff, board of directors, or
other governing body have been a City of El Segundo employee or consultant; a City of El Segundo
Councilperson; or a Board or Commission member who has direct influence on the use of public
funding.
11 l
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H. Appendix
_ -
ow
Please see the following page for Abode Communities' 2019-2018 Audited Financial Statements.
Abode Communities
Index
Page
Independent Auditor's Report
2
Consolidated Financial Statements
Consolidated Statements of Financial Position
4
Consolidated Statements of Activities
6
Consolidated Statements of Changes in Net Assets
8
Consolidated Statements of Functional Expenses
9
Consolidated Statements of Cash Flows
11
Notes to Consolidated Financial Statements
13
Supplementary Information - Abode Communities and Affiliates
Consolidating Statements of Financial Position
42
Consolidating Statements of Activities
46
Consolidating Statements of Changes in Net Assets
50
Consolidating Statements of Cash Flows
52
Schedule of Expenditures of Federal Awards
58
Notes to Schedule of Expenditures of Federal Awards
59
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
60
Independent Auditor's Report on Compliance for the Major Federal Program and on Internal
Control over Compliance Required by the Uniform Guidance
62
Schedule of Findings and Questioned Costs
64
1 277
CohnRemick LLP
cohnremick.com
Independent Auditor's Report
To the Board of Directors
Abode Communities
Report on the Financial Statements
CohnReznickO
ADVISORY • ASSURANCE • TAX AM
We have audited the accompanying consolidated financial statements of Abode Communities, which
comprise the consolidated statements of financial position as of December 31, 2019 and 2018, and the
related consolidated statements of activities, changes in net assets, functional expenses and cash
flows for the years then ended, and the related notes to the consolidated financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audits. We did not audit the financial statements of certain Operating Entities included in the
consolidated financial statements in which Abode Communities owns an interest. The assets, liabilities,
net assets and net loss of such entities are stated at $270,072,243, $246,001,256, $24,070,987 and
$8,219,393, respectively, for 2019. The assets, liabilities, net assets and net loss of such entities are
stated at $242,608,300, $208,930,849, $33,677,451 and $10,143,793, respectively, for 2018. The
financial statements of those Operating Entities were audited by other auditors, whose reports have
been furnished to us, and our opinion, insofar as it relates to the amounts included for those Operating
Entities, is based solely on the reports of the other auditors. We conducted our audits in accordance
with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Certain Operating Entities were not audited in accordance with
Government Auditing Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the consolidated financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
2 278
Cohn Reznick(, '_.
Opinion
In our opinion, based on our audits and the reports of the other auditors, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of Abode
Communities as of December 31, 2019 and 2018, and the changes in its net assets and its cash flows
for the years then ended in accordance with accounting principles generally accepted in the United
States of America.
Other Matters
Other Information
Our audits were conducted for the purpose of forming an opinion on the consolidated financial
statements as a whole. The accompanying supplementary information on pages 42 to 57 is presented
for purposes of additional analysis and is not a required part of the consolidated financial statements.
The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of
Federal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a
required part of the consolidated financial statements. Such information is the responsibility of
management, was derived from, and relates directly to underlying accounting and other records used to
prepare the consolidated financial statements. The information has been subjected to the auditing
procedures applied in the audit of the consolidated financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the consolidated financial statements or to the consolidated financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the consolidated financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 19,
2020, on our consideration of Abode Communities' internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of Abode Communities' internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering Abode Communities' internal control over financial reporting and compliance.
Sacramento, California
August 19, 2020
3 279
Attachment D
Affordable Housing Services Provider
Request for Qualifications
CITY OF EL SEGUNDO
REQUEST FOR QUALIFICATIONS
FOR AN AFFORDABLE HOUSING SERVICES PROVIDER
(INCLUDING DEVELOPMENT AND MANAGEMENT OF AFFORDABLE HOUSING UNITS)
RFQ Due Date: November 9, 2020 at 3:00 pm
RFQ Administrator: Paul Samaras, Principal Planner
Email: psamaras@elsegundo.org
281
TABLE OF CONTENTS
I. INTRODUCTION.......................................................................................................................1
A. BACKGROUND..................................................................................................................................... 1
B. COMMUNITY PROFILE........................................................................................................................... 2
C. DESCRIPTION OF THE OPPORTUNITY......................................................................................................... 2
D. RFQTIMELINE.............. ............ .......................................................................................................... 3
II. THRESHOLD REQUIREMENTS...................................................................................................3
III. SUBMISSION REQUIREMENTS..................................................................................................4
A. SUBMITTAL COVERSHEET...................................................................................................................... 4
B. TABLE OF CONTENTS............................................................................................................................. 5
C. COVER LETTER..................................................................................................................................... 5
D. DEVELOPMENT ENTITY.......................................................................................................................... 5
E. DEVELOPMENT & ADMINISTRATIVE EXPERIENCE........................................................................................ 5
F. FINANCIAL CAPABILITY.......................................................................................................................... 7
G. POTENTIAL CONFLICTS OF INTEREST......................................................................................................... 7
IV. RFQ SUBMITTAL & QUESTIONS................................................................................................7
V. SELECTION PROCESS & CRITERIA..............................................................................................8
VI. CAVEATS.................................................................................................................................9
A. RIGHTS AND UNDERSTANDINGS.............................................................................................................. 9
B. COST LIABILITY................................................................................................................................... 10
C. AMENDMENTS...................................................................................................................................10
EXHIBIT
Exhibit A: Notice of Intent to Respond
City of El Segundo Request for Qualifications Page i
Affordable Housing Services
yj
INTRODUCTION
On June 16, 2020, the El Segundo City Council authorized preparation of a Request for Qualifications
(RFQ) seeking an affordable housing services provider to assist in the development and management of
affordable housing units and services within the City. The selected respondent will assist the City in
fulfilling its affordable housing needs as defined in the State of California's Regional Housing Needs
Assessment (RHNA) goals.
For reference purposes, the City's RHNA allocation for the planning period of January 1, 2014 to
October 31, 2021 is 69 units. Based on current projections, the City's RHNA goal for the next eight year
cycle is anticipated to be in the range of 500 units. In addition to meeting its RHNA affordable housing
production goals, the City has established the following five overarching housing goals:
1. Preserve and protect the existing affordable housing stock;
2. Provide sufficient new, affordable housing opportunities in the City to meet the needs of
groups with special requirements, including the needs of lower and moderate -income
households;
3. Provide opportunities for new housing construction and rehabilitation of existing units in a
variety of locations and densities to achieve a diversity of housing;
4. Remove constraints on housing development, as necessary; and
5. Promote equal housing opportunities including ownership and rental housing.
The 2014-2021 Housing Element was adopted in January 2014 and is in compliance with State law. The
Housing Element can be found on the City's website:
https://www.elsegundo.org/Home/ShowDocurnent?id=348
City of El Segundo Request for Qualifications Page 1
Affordable Housing Services
283
COMMUNITY PROFILE
Located in the south bay region of Los Angeles County, El Segundo is located approximately 19 miles
southwest of Downtown Los Angeles. Incorporated on January 18, 1917, the El Segundo covers a land
area of approximately 5.5 square miles. The residential population is 16,700 with a considerably larger
daytime population of over 70,000 people due to the robust workforce. El Segundo has a diverse and
thriving business base, serving as the headquarters for major aerospace, technology, media, and health
care firms. El Segundo benefits from its proximity to the larger southern California economy, and is
well served by several major freeways and nearby LAX airport.
Historically, less than 25% of the land within El Segundo has been used for residential development,
with remaining land used primarily for a mixture of light and heavy industrial purposes, manufacturing,
retail, hotels, and creative office. A total of 335 acres are designated for residential or commercial
mixed use development, which affects the supply of land available for housing development. The City's
most recent RHNA allocation indicated the need for affordable housing for lower income households,
particularly those with special needs including senior citizens, large households, extremely low-income
households, households with military personnel, households with persons who have disabilities
(including developmental disabilities), and the homeless.
DESCRIPTION OF THE OPPORTUNITY
Qualified respondents will have experience developing, managing and operating high quality,
affordable rental housing projects. That experience should include a track record of successfully
obtaining outside affordable housing assistance funding, and complying with federal, state and local
affordable housing occupancy and reporting requirements.
The chosen team will work closely with the City to assist in the following:
Developing a strategic plan for producing affordable housing units to assist the City in fulfilling
future Regional Housing Needs Assessment (RHNA) goals;
Identifying properties with the potential for affordable housing development, and existing
rental projects that may be suitable for acquisition, rehabilitation and conversion to deed -
restricted affordable housing projects; and
3. Assisting in the ongoing monitoring and administration of affordable housing units that are
produced in El Segundo.
City of El Segundo Request for Qualifications Page 2
Affordable Housing Services
The City currently has approximately $5.3 million in available funding to initiate the affordable housing
development process. The City also anticipates receiving additional funding over the next several years
from in -lieu fee revenues generated by projects that are subject to Development Agreements. These
funds are to be considered the City's contribution to the project(s), and the respondent would be
expected to seek additional gap financing from other federal, state and local programs, banks and/or
private investors.
The City owns the 97-unit Park Vista senior citizen housing project, which is restricted to low and
moderate income households. The respondents chosen through this RFQ process may be tasked with
effectively managing this property, whether in-house or through a qualified third -party property
management company. The City may also potentially offer to sell this project to the selected
respondents.
RFQ TIMELINE
The pertinent actions and due dates related to this RFQ are as follows:
RFQ Release Date
Notice of Intent to Respond Form Due Date
Deadline for Written Questions
Release of Final Responses to Written Questions
RFQ Submittal Deadline
THRESHOLD REQUIREMENTS
September 8, 2020
October 7, 2020
October 15, 2020 at 3:00 pm
October 29, 2020
November 9, 2020 at 3:00 pm
The City is inviting respondents committed to providing and operating affordable housing to submit a
proposal demonstrating their qualifications and interest in providing affordable housing in El Segundo.
Respondents that can demonstrate the experience, capability, and creativity to successfully undertake
this opportunity are invited to respond to this RFQ by outlining their:
Relevant experience in the development and management of affordable housing, with
preference given to teams who have experience working in Southern California;
City of El Segundo Request for Qualifications Page 3
Affordable Housing Services
285
2. Financial capabilities, including experience in application to and participation in federal, state,
regional, and/or local affordable housing funding programs;
Experience and capacity to conduct income verification and screening of tenants to ensure
ongoing compliance with income and affordability restrictions; and
4. Any other information that will enhance the City's ability to evaluate the respondent.
Eligible applicants under this RFQ may include one entity or a team of several entities, including any of
the following: for profit housing developers; nonprofit housing developers; joint ventures; and limited
or general partnerships. Applicants that include several entities must identify a lead entity that has
demonstrated experience and capacity in the development, management and administration of
affordable housing projects.
m. SUBMISSION REQUIREMENTS
The RFQ is the City's first step in evaluating respondents' interest in the opportunity to develop,
manage and administer affordable housing in El Segundo. The RFQ response should express the
respondent's interest, vision, and capability to produce affordable housing units and to assist in
administering the City's affordable housing assets. Concise and focused responses are encouraged.
Responses to this RFQ must not exceed a total of 30 pages using a minimum 11 point font size.
The submittal must include each of the following elements:
SUBMITTAL COVER SHEEN
The submittal cover must include the following information:
RFQ title;
Submittal due date; and
3. Identification of the respondent including the name, address, telephone number, and email
address of the principal contact for the respondent.
City of El Segundo Request for Qualifications Page 4
Affordable Housing Services
TABLE OF CONTENTS
A table of contents must be provided that includes corresponding headings and page number to allow
for easy reference by the City's evaluation committee.
COVER LETTER
The cover letter should be brief, and it must clearly identify the respondent's principal contact,
including physical address, email address, and telephone number. The cover letter must include a
statement verifying that the respondent will agree to adhere to the minimum income and affordability
standards identified in this RFQ. The signatory must be an individual with legal authority to bind the
respondent.
U. HOUSING SERVICES PROVIDER
Identify the lead entity that would enter into an agreement with the City, and any other known
team members. Indicate the form of legal entity of the proposed ownership (e.g. limited
partnership, nonprofit corporation, general partnership, joint venture, for profit corporation)
and any relationship the development organization(s) may have with a parent corporation, joint
ventures or other entities.
2. For each firm included in the respondent's team, briefly describe its role, relevant experience,
and specialization. Highlight each firm's experience providing services in Southern California.
3. Identify the project manager and personnel that will be implementing development concepts
through day-to-day management, and their level of experience and responsibility.
4. Provide resumes for each of the project managers and key staff members that will be providing
services to the City.
E. DEVELOPMENT & MANAGEMENT EXPERIENCE
1. Provide information for no fewer than three and no more than five recently completed
affordable housing projects. The City prefers examples of projects that are underway or were
completed within the past ten years. Provide the following information for each project:
City of El Segundo Request for Qualifications Page 5
Affordable Housing Services
287
a. Project description and location;
b. Project scope, including size and number of units;
C. Project completion date and length of time to complete;
d. Population(s) served;
e. Management and tenant services arrangements;
f. Project amenities and services;
g. Level of affordability; and
h. Description of financing sources
2. Describe any projects currently in the development pipeline, including project description,
completion date, population(s) served, level of affordability and financing sources.
3. Describe the respondent's property management and affordability compliance experience with
Low Income Housing Tax Credits, regulatory agreements, and other applicable state and federal
rules and regulations. Provide a description of the current asset management structure, staffing
and portfolio.
4. Outline the respondent's process that will be applied to ensure high quality property
management and project operations throughout a project's income and affordability covenant
period.
5. Indicate if the respondent(s) has/ have experience working on projects in jurisdictions similar to
ElSegundo.
6_ Provide additional information regarding each firm in the respondent's team including:
a. The length of time in business;
b. The firm's ownership structure;
C. The location of the principal offices; and
d. The identification of the office that would undertake the proposed services.
City of El Segundo Request for Qualifications Page 6
Affordable Housing Services
F. FINANCIAL CAPABILITY
Provide a narrative that identifies the respondent's capacity and financial strength to secure the
equity and financing required to develop affordable housing projects.
Provide contact information for the debt, equity, and public financial assistance sources that
were used to fund the costs associated with affordable housing projects identified in the
previous section of this RFQ (Section E).
3. Provide financial statements for the lead entity for the past two years that were independently
prepared in accordance with generally accepted accounting principles.'
4. Disclose if any member of the respondent's team has ever defaulted on its financial obligations,
has had developments that were foreclosed upon, or if bankruptcy has ever been filed.
5. Identify any legal actions taken against any member of the respondent's team in the past five
years, including fair housing violations.
POTENTIAL CONFLICTS OF INTEREST
Disclose if any member(s) of the respondent's team staff, board of directors, or other governing body
is or has been any of the following within the past two years:
A City of El Segundo employee or consultant.
A City of El Segundo Councilperson.
A Board or Commission member who has direct influence on the use of public funding.
IV. RFQ SUBMITTAL & QUESTIONS
Unless otherwise indicated in this RFQ the point of contact for the City is
Paul Samaras at: psamaras@elsegundo.org
1 The financial statements can be submitted to the City Attorney under separate cover. The financial statements do not
count towards the page limit imposed by this RFQ.
City of El Segundo Request for Qualifications Page 7
Affordable Housing Services
Respondents must submit one electronic version (pdf format) via email to: samaras else undo.or
no later than 3 p.m., MONDAY, NOVEMBER 9, 2020. Responses to this RFQ must not exceed a total of
30 pages using a minimum 11 point font size.
The submissions must have the following description in the subject line of the email:
City of El Segundo Request for Qualifications
Affordable Housing Services
Incomplete submittals, incorrect information, or late submittals shall be cause for disqualification.
Responses in any form other than a pdf submitted via email will not be accepted.
Questions regarding this RFQ must be submitted by email prior to 3:00 pm on October 15, 2020. Please
submit all questions via email to Tina Gall at tgall@elsegundo.org. For questions submitted before the
deadline, the City will provide final written responses by October 29, 2020 to all parties that have
timely filled out and submitted the Notice of Intent to Respond form attached as Exhibit A to this RFQ.
SELECTION PROCESS & CRITERIA
Respondents will be evaluated on the strength and experience of the respondent's team, the team's
capability to manage and operate the City's existing assets, and capacity to create new affordable
housing while meeting the City's regional housing goals. The City has assigned the following point
system to the specific evaluation criteria:
Criteria Maximum Points
Development Experience 40
Financial Capability 30
Management & Administration Experience
Tota I
The City's selection process will consist of two phases. The first phase will involve the identification of a
shortlist of respondents based on the identified selection criteria. The second phase will involve
City of El Segundo Request for Qualifications Page 8
Affordable Housing Services
interviews, if necessary, of each of the shortlisted teams with the City's evaluation committee. At the
discretion of the City, and due to current conditions, the City may conduct interviews virtually. At the
completion of the interview process, the City staff intends to recommend a finalist respondent to the
City Council for consideration and direction.
If the City makes a selection, the next step in the process is for the City and the respondent to enter
into an Exclusive Negotiating Agreement (ENA) with a term of up to six (6) months. Any extensions to
that term will be subject to City Council approval at their sole discretion. If the negotiations are
successful, the City staff will bring forward a development and administrative services agreement to
the City Council for consideration and action.
VI. CAVEATS
A. RIGHTS AND UNDERSTANDINGS
The City reserves the following rights to take the following actions with respect to the RFQ:
1. Accept or reject any submittals received in response to this RFQ.
2. Accept, reject, or negotiate modifications to any of the submissions received in response to the
RFQ.
3. Issue additional solicitations for submissions and/or addenda to the RFQ.
4. Negotiate with one or more the respondents.
Select any submission as the basis for negotiations, and to negotiate with respondents for
amendments or other modifications to their submissions.
6. Waive any irregularities in any submission.
7. Conduct investigations with respect to the qualifications of each respondent, and/or to obtain
additional information deemed necessary to evaluate the respondent's experience and
financial capabilities.
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291
COST LIABILITY
The City is not liable to pay or reimburse any costs incurred by the respondents in the RFQ process.
This includes any of the costs that may be incurred by the respondent by undertaking the following
activities:
1. The preparation of its response to the RFQ.
2. The response to any request for information made by the City during the selection process.
3. Negotiations with the City on any issue related to the RFQ.
4. Participation in interviews associated with the developer selection process.
Negotiations with the City related to the preparation of an ENA.
6. Negotiations with the City related to the preparation of an affordable housing services provider
agreement.
AMENDMENTS
Any amendments to the RFQ will be issued by the City. The City will not be bound by any oral
statements or modifications. If the RFQ is amended, all terms and conditions that are not modified will
remain unchanged. Respondents shall acknowledge receipt of each amendment to the RFQ in writing
by including a statement to such effect in its submission.
All respondents should note that the award of any contract pursuant to this solicitation is dependent
upon the recommendation of the City staff and the approval of the City Council.
City of El Segundo Request for Qualifications Page 10
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292
EXHIBIT A
NOTICE OF INTENT TO RESPOND
REQUEST FOR QUALIFICATIONS
AFFORDABLE HOUSING SERVICES PROVIDER
(INCLUDING DEVELOPMENT AND
MANAGEMENT OF AFFORDABLE HOUSING UNITS)
Request for Qualifications
Affordable Housing Services
293
NOTICE OF INTENT TO RESPOND
REQUEST FOR QUALIFICATIONS
AFFORDABLE HOUSING SERVICES PROVIDER (INCLUDING DEVELOPMENT
AND MANAGEMENT OF AFFORDABLE HOUSING UNITS)
CITY OF EL SEGUNDO
The purpose of the Notice of Intent to Respond is to assist the City in managing information and to
ensure that communications regarding this Request for Qualifications reach the intended recipients.
Answers to questions raised during the Request for Qualifications process will only be sent to
respondents that complete and return a Notice of Intent to Respond. Completing and submitting this
Notice does not bind the undersigned to submit a response to the Request for Qualifications.
The authorized representative identified in the Notice of Intent to Respond will serve as the single
point of contact with the City throughout the Request for Qualifications process. All communications to
the respondent will be addressed to the authorized representative. No other methods will be used to
respond to any questions received by the City during the Request for Qualifications process.
The Notice of Intent to Respond must be returned via email by October 7, 2020 by 3 p.m., to Tina Gall,
at: tgall@eisegundo.org. Questions related to the Request for Qualifications must be submitted via
email by October 15, 2020 at 3 p.m., to Tina Gall at: tgall@elsegundo.org. The City will provide final
written responses via email to questions by October 29, 2020 to all parties that timely submit the
Notice of Intent to Respond.
Organization/Team Name:
Authorized Representative:
Street Address:
City: State: Zip code:
Telephone #:
Request for Qualifications
Affordable Housing Services
Email Address:
294
CITY OF
E LS E GU N D O City Council Agenda Statement
Meeting Date: February 16, 2021
Agenda Heading: Staff Presentation
TITLE:
Fiscal Year 2019-2020 Citywide Budget Year -End Report.
RECOMMENDATION:
Receive and File.
FISCAL IMPACT:
There is no fiscal impact associated with receiving this informational report. Each fund
ended FY 2019-2020 with sufficient revenues, and/or use of reserves, to cover recurring
operating expenditures/expenses and on -time capital improvement expenditures/
expenses. Some funds (such as the General Fund and Wastewater Fund) continue to
face structural budget challenges which will be closely monitored through the end of FY
2020-2021 and will be addressed via the Proposed FY 2021-2022 Citywide Budget.
BACKGROUND:
When the Fiscal Year (FY) 2019-2020 Citywide Budget was adopted on September 18,
2019, it was unknown that a global pandemic and social justice protests were on the
horizon which would significantly impact City revenues starting in March 2020. On
February 18, 2020, City Council was provided with a FY 2019-2020 First Quarter Budget
Update which reflected a strong outlook for all funds, due to a very healthy and diverse
local economy. In fact, early indications were that General Fund revenues would end the
fiscal year with a greater than originally estimated outcome. The future of the City was
robust and positive.
Shortly after the First Quarter Budget Update, the unanticipated effects of COVID-19
started to work their way into California. By mid -March, federal, state, and local
governments issued a series of emergency declarations, proclamations, and
administrative orders to protect residents and businesses. This resulted in a sudden drop
in General Fund revenues which then triggered the City's decision to shut down a variety
of municipal services, including: recreation programs, library services, and cultural
programs. Most City facilities were shut down as well.
Due to the unanticipated effects of two simultaneous national and local "State of
Emergency" situations (the global COVID-19 pandemic which became more pronounced
in March 2020 and social justice protests staring in May 2020), the local El Segundo
economy experienced considerable impacts throughout the remainder of FY 2019-2020.
This translated into significant reductions to City revenues and funding available to
support City services.
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FYE 2019-20 Financial Review
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General Fund Budget Impact
By April 21, 2020, staff analyzed three different scenarios based on the timing of the virus'
anticipated peak and beginning of a local economic recovery. Each scenario assumed a
time separation of three months as follows:
• Scenario One - COVID peaking in 5/20 & Economic Recovery starting in 7/20
In this scenario, the General Fund was projected to experience a $9.6 million (or 12%)
FY 2019-2020 revenue loss.
■ Scenario Two - COVID peaking in 8/20 & Economic Recovery starting in 10/20
In this scenario, the General Fund was projected to experience a $15.2 million (or
20%) FY 2019-2020 revenue loss.
Scenario Three - COVID peaking in 12/20 & Economic Recovery starting in 1/21
In this scenario, the General Fund was projected to experience a $16.1 million (or
21%) FY 2019-2020 revenue loss and starting FY 2020-2021 (October 1, 2020) with
a much lower base than the previous year.
With each scenario, the level of offsetting budget appropriation reductions, position
reductions, and service impacts were anticipated to be more pronounced. On May 5,
2020, City Council approved using Economic Recovery Scenario One as part of the FY
2019-2020 mid -year budget revisions. In response, revenues were reduced by $9.6
million, appropriations were reduced by $6.2 million, and $3.4 million in General Fund
carryover balance from the prior fiscal year was used to balance the budget. Over 30 full-
time vacant positions and approximately 125 part-time positions were frozen (kept
vacant), several maintenance projects were deferred, and a few capital improvement
projects were either canceled or deferred.
As the City approached June 30, 2020, it became clear that the COVID-19 virus would
peak much later than July 2020 and the economic recovery would be delayed. During
the City's Strategic Planning Session on July 22, 2020, staff advised City Council that the
City was shifting to Economic Recovery Scenario Two. At the time, it was anticipated
that COVID might peak in September and the economic recovery would begin in October
2020. In reality, COVID likely peaked in January 2021 and the economy recovery may
have started in late 2020 or early 2021. The actual dates will not be known for a few more
months.
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FYE 2019-20 Financial Review
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DISCUSSION:
GENERALFUND
FY 2019-2020 General Fund Revenue Estimates
The table below displays the Adopted FY 2019-2020 General Fund Budget revenue
estimate ($76,710,208), mid -year revenue estimate based on Economic Scenario One
($67,107,993), and revised year-end estimate ($71,645,275). The mid -year estimate
reflects a $9.6 million (-12.6%) decrease. The estimated year-end estimate reflects a
$5.1 million (-6.7%) decrease. While this is an improvement from the revisions made
during the mid -year review, the year-end revenue loss is significant and concerning.
1
TOT
$15,200,000
$9,059,660
$8,283,596
2
Business License Tax
12,510,000
12,260,000
12,405,000
3
Sales Tax
11,500,000
10,676,000
12,006,731
4
Property Tax
8,816,500
8,599,500
9,184,049
5
Utility Users Tax
6,450,000
5,992,062
6,559,666
6
Chevron Tax Reso Agreement
5,600,000
5,902,063
5,902,063
7
Charges for Service
5,902,063
3,798,844
3,798,844
8
Other Revenues
3,798,844
3,018,995
3,350,323
9
Franchise Tax
3,200,000
3,200,000
3,251,747
10
Intergovernmental Revenues
1,851,490
1,926,490
1,948,609
11
License & Permits
1,688,358
1,538,358
1,829,701
12
Interest & Rentals
824,000
804,000
1,949,486
13
Fines & Forfeitures
412,020
192,020
273,427
14
Transfers In
140,000
140,000
140,000
15
FEMA COVID-19 Reimb.
0
0
513,482
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The following table displays the dollar and percentage changes from the Adopted FY
2019-2020 General Fund Budget revenue estimate to the year-end revenue estimate:
1
TOT
$15,200,000
$8,283,596
($6,916,404)
54%
2
Business License Tax
12,510,000
12,405,300
(104,700)
99%
3
Sales Tax
11,500,000
12,006,731
506,731
104%
4
Property Tax
8,816,500
9,184,049
367,549
104%
5
Utility Users Tax
6,450,000
6,559,666
302,063
102%
6
Chevron Tax Reso Agreement
5,600,000
5,902,063
5,902,063
105%
7
Charges for Service
5,298,845
4,047,095
(1,251,750)
76%
8
Other Revenues
3,218,995
3,350,323
131,328
104%
9
Franchise Tax
3,200,000
3,251,747
51,747
102%
10
Intergovernmental Revenues
1,851,490
1,948,609
97,119
105%
11
License & Permits
1,688,358
1,829,701
141,343
108%
12
Interest & Rentals
824,000
1,949,486
1,125,486
237%
13
Fines & Forfeitures
412,020
273,427
(138,593)
66%
14
Transfers In
140,000
140,000
$0
100%
15
FEMA COVID-19 Reimb.
0
513,482
513,4$2.
NIA
FY 2019-2020 General Fund Revenue Analysis
As illustrated in the table above, three revenue sources experienced significant reductions
due to the impact of COVID-19: Transient Occupancy Tax (TOT), Charges for Services,
and Fines & Forfeitures. As noted below, TOT revenues were hit the hardest, down by
nearly $7 million. Charges for Service dropped by just over $1.25 million, although this
was mitigated by offsetting expenditure savings. Fines and Forfeitures fell by nearly
$139,000 due primarily to the Police Department not issuing parking citations during the
throes of the pandemic. Other than these three revenue sources, the General Fund's
revenues ended the year as anticipated, with some revenue sources coming in higher
than estimated. See below for more specific information about each of the General
Fund's 15 revenue categories.
1. Transient Occupancy Tax
Year-end revenue estimate was down by $6,916,404 (46%) due to COVID-19. This
revenue source is driven by two factors: hotel occupancy rates and room charges.
Immediately after COVID-19 hit, the City's occupancy rates at 15 hotels fell from an
average of 90% to below 50%. Occupancy rates in some hotels slid to below 10%
during March and April. Hotel occupancy rates are now rising; however, occupancy
rates are still well below 90%. The actual hotel room rates have also dropped and
remain lower than pre COVID-19 rates.
FYE 2019-20 Financial Review
February 16, 2021
Page 5 of 18
2. Business License Tax
Year-end revenue estimates were down by just $104,700 (1 %) due to a slight
reduction in new business openings in the City that were projected in the adopted
budget. Since this revenue source reflects the number of jobs in placed at the
beginning of the fiscal year, it is possible that the impact of COVID-19 (reduced
number of jobs within the City limits) may not be reflected until the later part of FY
2020-2021. As a result, the actual Business License Tax is a "lagging indicator" and
staff will continue to track its activity over the next couple years.
3. Sales & Use Tax
Year-end revenue estimates were up by $506,731 (4%) as a result of the City
receiving an increased share of the Statewide and Countywide COVID-19 sales tax
pool due and the increase of online sales transactions. In addition, it is possible that
there were localized increased onsite sales tax increases due to construction and
other unique development activities.
4. Property Tax
Year-end revenue estimates were up by $367,549 (4%) due to rising property values
and a very low delinquency rate.
5. Utility User Tax
Year-end revenue estimates were up by $109,666 (2%) due to increased electricity
rates and sales.
6. Chevron Tax Resolution Agreement (TRA)
Year-end revenue estimates were up by $302,063 (5%) due to this year's payment
was based on the prior year's actual tax revenue received from Chevron and a "true -
up" payment to be paid the following fiscal year once the actual tax revenues have
been reconciled. There is an established annual tax ceiling for Chevron that is
increased each year by the applicable Consumer Price Index (CPI).
7. Charges for Services
Year-end revenue estimates were down by $1,251,750 (24%) due to COVID-19
restrictions leading to the cancellation of a variety of recreational, library, and cultural
programming. However, this was offset by an equal reduction to the Community
Services Department expenditures.
8. Other Reven
Year-end revenue was up by $131,328 (4%) due to an increase in billing for
reimbursement of staff time used by third party entities (fully burdened rate used) and
an increase in SB90 State mandated reimbursements received.
FYE 2019-20 Financial Review
February 16, 2021
Page 6 of 18
9. Franchise Tax
Year-end revenue was up by $51,747 (2%) primarily due to increased electrical
revenues from Southern California Edison (SCE) and increased natural gas
revenues from Southern California Gas Company.
10. intergovernmental Revenue
Year-end revenue was up by $97,119 (5%) due to an increase in assessed property
tax valuations. This revenue increase is in line with the Property Tax percentage
increase. Vehicle License Fee (VLF) revenue was part of the State's reorganization
of VLF and Property Tax revenues to municipalities in the late 1990s, also referred
to as triple flip, which tied VLF to Property Tax valuations. In 2004, the CA State
Legislature permanently reduced the VLF tax rate and eliminated State General
Fund backfill to cities and counties. Instead, cities and counties now receive
additional transfers of Property Tax revenues in lieu of VLF.
11. Licenses and Permits
Year-end revenue was up by $141,343 (8%) due to an increase in building permits.
This reflected an increase in local development activity.
12. Interest Earnin s & Rental Income
Year-end revenue was up by $1,125,486 (137%) due to budget assumptions for
interest income not yet determined as originally anticipated. Interest rates for U.S.
Treasuries, Federal Agencies, municipal bonds, and CDs were on the rise when
the original budget was assembled. The City made strategic investments during
this timeframe capturing higher yields. The City also had higher cash balances than
what was anticipated in the budget, in part due to the cancellation and delay of
some capital improvement projects. All of this resulted in an increase in year-end
investment earnings.
13. Fines & Forfeitures
Year-end revenue was down by $138,593 (34%) mainly due to a decrease in
Parking Fines which were not issued during a portion of the COVID-19 pandemic.
14. Transfers -in
Year-end revenue came in as originally budgeted. The main transfer -in item is
revenue from the Traffic Safety Fund that is used to mitigate traffic safety
expenditures in the General Fund.
We
FYE 2019-20 Financial Review
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Page 7 of 18
15. FEMA: COVID-19 Reimbursement
The Federal Emergency Management Agency (FEMA) reimbursed the City
$513,482 for a portion of the $1,167,750 in expenditures incurred in FY 2019-2020
due to COVID-19. As of September 30, 2020, FEMA reimbursed the City 44% of
the cost incurred with this nationally declared disaster.
Since the Federal government still has an active emergency declaration for this
pandemic, the remaining cost incurred by the City for COVID-19 related operations
and response will continue into FY 2020-21, as will prior year reimbursements. The
original FEMA orders were to reimburse cities 75% of eligible COVID expenditures.
The 75% reimbursement threshold will allow the City to be reimbursed up to
$875,812 of the $1,167,750 in expenditures incurred during FY 2019-20. The State
of California is anticipated to reimburse the City for 75% of the remaining 25%
share. However, it is now possible that the federal government will reimburse cities
for the full 100%.
FY 2019-2020 General Fund Exoenditure Estimates
The table below displays the Adopted FY 2019-2020 General Fund Budget total
appropriation ($80,782,540), mid -year expenditure estimate based on Economic
Scenario One ($75,151,891) and estimated year-end expenditure ($76,388,384). The
mid -year estimate reflects a $5.6 million decrease (7%) from the adopted budget. The
year-end estimate reflects a $4.4 million decrease (5%) from the adopted budget.
1
Police
$ 23,175,793 $
22,252,793
2
Fire
17,015,860
16,282,650
3
Community Services
9,680,013
8,960,261
4
Public Works
8,098,326
7,878,343
5
Non -Departmental
5,743,964
5,593,704
6
Developmental Services
3,192,691
3,033,854
7
Information Technology
2774,264
2,592,636
8
Finance & Treasury
2:767,940
2,523,267
9
Transfers Out (CIP)
2,749,000
1,249,000
10
City Manager
2,526,032
2,093,831
11
Human Resources
1,430,937
1,163,432
12
City Clerk
722,838
634,238
13
City Attorney
585,450
585,450
14
City Council
319,432
308,432
15
COVID-19 Response
0
0
16
Social Justice Protests
0
0
MWA
$ 22,873,284
17,388,393
7,737,698
7,226,520
5,969,635
2,886,362
2,569,352
2,431,946
1,249,000
2,068,147
1,011,218
534,170
753,433
308,625
1,167,750
212,851
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Page 8 of 18
The following table displays the dollar and percentage changes from the Adopted FY
2019-2020 General Fund Budget appropriation to the year-end expenditure estimate:
1
Police
2
Fire
3
Community Services
4
Public Works
5
Non -Departmental
6
Developmental Services
7
Information Technology
8
Finance & Treasury
9
Transfers Out (CIP)
10
City Manager
11
Human Resources
12
City Clerk
13
City Attorney
14
City Council
15
COVID-19 Response
16
Social Justice Protests
$ 23,175,793
$ 22,873,284
($302,509)
99%
17,015,860
17,388,393
372,533
102%
9,680,013
7,737,698
(1,942,315)
80%
8,098,326
7,226,520
(871,806)
89%
5,743,964
5,969,635
225,671
104%
3,192,691
2,886,362
(306,329)
90%
2,774,264
2,569,352
(204,912)
93%
2,767,940
2,431,946
(335,994)
88%
2,749,000
1,249,000
(1,500,000)
45%
2,526,032
2,068,147
(457,885)
82%
1,430,937
1,011,218
(419,719)
71%
722,838
534,170
(188,668)
74%
585,450
753,433
167,983
129%
319,432
308,625
(10,807)
97%
0
1,167,750
1,167,750
N/A
0
212,851
212,851
N/A
J
FY 2019-2020 General Fund Expenditure Analysis
As illustrated in the above table, most departments stayed within their initial adopted
budgets by freezing over 30 vacant full-time positions, 125 part-time positions, deferring
maintenance projects, and cancelling/deferring capital improvement projects. However,
a few departments did spend more than their adopted budgets due to the impacts of
COVID-19 and social justice protests. As a reminder, most COVID-19 related
expenditures will be reimbursed by FEMA and the State of California. See below for more
specific information about each of the General Fund's 14 departments and offices.
Police
Year-end expenditures were within $302,509 (1%) of the adopted budget. COVID-
19 and social justice protests resulted in increased overtime expenditures.
2. Fire
Year-end expenditures were $372,533 (2%) over the adopted budget. The Fire
Department budget was higher due a rising number of personnel placed on injury
reserve and minimum staffing levels being met through overtime. COVID-19 also
resulted in increased overtime expenditures.
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3. Community Services
Year-end expenditures were $1,942,315 (20%) below the adopted budget. This
reflects a drop in programming for recreation, library, and cultural services due to
COVID-19. Revenues to pay for a significant portion of these programs did not
materialize as a result.
4. Public Works
Year-end expenditures were $871,806 (11%) below the adopted budget. This
reflects the freezing of several vacant positions throughout the year, as well as a
reduction in contractual services deferring some capital improvement projects into
FY 2020-21.
5. Non -departmental
Year-end expenditures were $225,671 (4%) over the adopted budget largely due to
COVID-19 impacts, early retirement incentives, unemployment compensation
claims, and related costs.
6. Development Services
Year-end expenditures were $306,329 (10%) below the adopted budget due to
COVID-19 impacts and the freezing of several staff vacancies.
7. information Technology Services
Year-end expenditures were $204,912 (7%) below the adopted budget primarily due
to staff vacancies.
8. Finance & Treasury
Year-end expenditures were $335,994 (12%) below the adopted budget due to two
vacant staff positions and a reduction in several operational budget line items,
including: travel and training costs due to COVID-19, printing costs due to
implementing virtual operations, and supplies.
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9. Transfers Out (Capital Improvement Program)
Year-end expenditures were $1,500,00 (45%) below the adopted budget due to
deferral of several capital improvement projects per City Council direction during the
May 5, 2020 mid -year budget review meeting. The following capital improvement
projects were unappropriated and/or deferred to FY 2020-2021:
• Teen Center & Skate Park Upgrades: $800,000
• City Hall Windows Replacement: $450,000
• Fiber Vault Lids Replacement: $150,000
Fitness Trail at Memory Row: $100,000
10. City Manager's Office
Year-end expenditures were $457,885 (18%) below the adopted budget due to
COVID-19, freezing marketing efforts, and maintaining one vacant position.
11. Human Resources
Year-end expenditures were $419,719 (29%) below the adopted budget due to a
manager position being vacant, little use of the employee engagement funds due to
COVID-19, and a reduction in costs associated with onboarding new full-time and
part-time staff.
12. City Clerk's Office
Year-end expenditures were $188,668 (26%) below the adopted budget primarily
due to the March 2020 election costs coming in significantly less than projected.
13. City Attorne 's Office
Year-end expenditures were $167,983 (29%) above the adopted budget due to
increased COVID-19 costs, increased employment related claims/lawsuits, and an
increase in development activity and related issues.
14. City Council Office
Year-end expenditures were $10,807 (3%) below the adopted budget due to
reduced travel, training, and other COVID-19 expenditures.
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15. COVID-19 Response
Year-end expenditures specifically associated with the City's COVID-19 response,
not included in each department's budget, totaled $1,167,750. These costs were
tracked separately in order to claim reimbursement from FEMA for COVID related
activities. This activity was not budgeted for; however, the City has filed several
claims with FEMA with the expectation of being reimbursed up to 75% from the
federal government. The total gross costs in FY 2019-20 were $1,167,750, with
$513,482 already reimbursed by FEMA. The remaining $654,268 in costs will be
eligible for a 75% reimbursement ($490,700). The Biden Administration has
proposed changing the 75% reimbursement to a 100% reimburse retroactive to the
beginning of the pandemic.
The State of California normally covers up to 75% of the remaining 25% not
reimbursed by the federal government for this type of national emergency. This may
come into play if the federal government does not provide a full 100%
reimbursement.
16. Social Justice Protests:
Year-end expenditures specifically associated to the City's response were not
included in each department's budget totaled $212,851. These costs were tracked
separately in the event FEMA may decide to reimburse municipalities for the social
justice protests that occurred during the summer of 2020. The federal government
has decided to disallow claims associated with social justice unrest. Therefore, the
expenditures related to the social justice protests will not be eligible for either FEMA
or State of California reimbursement.
Estimated Fund Balance for General Fund
When City Council adopted the FY 2019-2020 General Fund Budget on September 17,
2019, the projected ending fund balance for September 30, 2020 was $13.1 million.
Based on staffs analysis, this amount is now projected to be $18.2 million, a net increase
of approximately $5.1 million. This is primarily due to maintaining vacant positions and
the deferral of maintenance and capital improvement projects during the fiscal year.
As a reminder, "fund balance" is defined as the difference between assets and liabilities
and may be categorized into reserved, unreserved, assigned, unassigned, and other
categories. City policy is to set the General Fund reserve levels at 20% of appropriations.
Based on the estimated revenues and adopted appropriations for FY 2020-2021, staff
projects the ending General Fund balance at June 30, 2021 to be at $18.2 million.
The table below represents the General Fund's estimated fund balance and reserves for
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FY 2019-2020. The fund balance is the amount of financial resources immediately
available for use. The additional fund balance that is not assigned toward the required
20% reserve is referred to as "unassigned" fund balance. These unassigned funds may
be used at the discretion of City Council.
Revised General Fund "Fund Balance" for Fiscal Year 2019-2020
Description
Adopted
Year-end Est.
Change
$0
% Change
0%
Beginning Unassigned Fund
$22,928,953
$22,928,953
Balance on October 1, 2019
FY 2019-20 Revenues
76,710,208
71.645,275
(5,064,933)
-7%
FY 2019-20 Expenditures
One-time expenditures:
CIP: $2.7M
(80,782,540)
( 76,388,384)
4,394,156
-5%
• Pension Trust: $1.6M
• Emplovee Prgm: $.2M
Ending Fund Balance
j 18,856,621
18,185,844
(670,777)
-4%
September 30, 2020
20% Reserve Requirement
16,156,508
15,277,677
878,831
-5%
Unassigned Reserves
$2,700,113
$2,908,167
$208,054
8%
The following table represents the General Fund's projected "fund balance" and reserves
for FY 2020-2021:
Projected General Fund "Fund Balance" for Fiscal Year 2020-2021
Description
Adopted
$18,856,621
Estimated
Chan e
% Change
Beginning Unassigned Fund
$18,185,844
(670,777)
4%
Balance on October 1, 2020
FY 2020-21 Revenues
59,051,732
59,051,732
0
0%
FY 2020-21 Expenditures
One-time expenditures:
(59,051,732)
(59,051,732)
0
0%
A CIP: $1,249,000
Ending Fund Balance (June
18,856,621
18,185,844
(670,777)
-4%
30, 2021)
20% Reserve Requirement
15,747,129
15,747,129
0
0%
based on 12-month budget)
$3,109,492
Unassii ned Reserves
$2,438,715
610,777
-20%
1 ^,
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General Fund Reserves
Maintaining a General Fund reserve of at least 20% is considered a "Best Management
Practice" (BMP) by municipal financial advisory firms and bond rating agencies, especially
given the current COVID-19 pandemic (and rise in natural disasters over the past decade,
including: fires, floods, and earthquakes throughout California). In addition, the possibility
of another economic recession, or a "double dip" economic decline during the COVID-19
recovery, continues to raise its head. Further, the City has significant financial exposure
associated with its aging and deteriorating public infrastructure which will require
unexpected one-time infusions of capital investment. Moreover, the reduction in reserve
balances also equates to a reduction in interest earnings revenue for the General Fund.
The reserve level for FY 2020-21 (based on a nine -month budget cycle) at 20% of
expenditures is $11.8 million. In order to maintain a 20% reserve for the traditional 12-
month cycle, which will be the case for the upcoming FY 2021-2022 budget cycle, the
City will need to maintain a General Fund reserve of at least $15.7 million.
As an additional policy, the City maintains an Economic Uncertainty Reserve_ which
requires a balance of at least $2 million. However, about $984,000 of this amount was
used to fund CIP projects in FY 2020-21. Going forward, this reserve balance will need
to be restored to $2 million starting with the FY 2021-22 Budget. The City also maintains
a Section 115 Pension Trust balance of $4.5 million for FY 2020-21. As part of the
upcoming FY 2021-2022 budget preparation process, staff will be recommending to City
Council to revisit the City's reserve policies, including adjusting the General Fund reserve
amount to over 20%, after a COVID-19 vaccine is developed and the economy begins to
stabilize. If the City learned anything as a result of the COVID-19 pandemic and social
justice protests, it is the value and importance of maintaining healthy "rainy day" reserves.
DEBT SERVICE FUND
The Debt Service Fund records the City's lease payments for the Douglas Street Gap
Closure capital improvement project. In September 2005, the City entered into a facility
lease agreement with California Infrastructure and Economic Development Bank (CIEDB)
whereby CIEDB issued $10,000,000 in bonds to finance the Douglas Street Gap Closure
Project. The City makes semi-annual lease payments over a 30-year period from Traffic
Impact Mitigation Fees which began in February 2006. The General Fund does not fund
the debt service.
Debt Service Fund Revenues Expenditures
FY 2019-20 Budget
$183,600
$545,000
FY 2019-20 Year-end Estimate
354,024
532,173
1) i fference
$170,424
$ 12,827
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Year-end revenue estimate was $170,424 higher than the adopted budget as a result of
an increase in projects that are assessed in the traffic impact mitigation fee. The Traffic
Impact Mitigation Fee (TIMF) program allows local government agencies to collect fees
to fund roadway improvements in the Regional Road Network to alleviate roadway
congestion and improve the flow of traffic through bottlenecks in the system. Any project
that generates new traffic must pay a TIMF.
ENTERPRISE FUNDS
Water Fund:
Year-end revenue estimates were down due to the sale of water being down because of
COVID-19 and some businesses being closed. Expenses were down compared to the
budget due to decreased water purchase by $2.8 million, $1.9 million in pending capital
projects, and $.5 million in salary and benefit savings due to vacancies.
Water Fund Revenues Expenses
11' 201 !: -20 Bridget
$? 1,28 t,360
$29,812.873
FY 2019-20 Estimate
28,847,206
24,307,459
Difference
$(2,434.154)
$(5,505,414)
Wastewater Fund:
Year-end revenue estimates were up by $357,018 primarily due to one-time connection
fees from new developments. Expenses, while greater than revenue, were down
compared to the budget due to pending capital projects: delayed AMR Meter installation,
and the wastewater pump station rehabilitation capital improvement project totaling
$940,000.
Wastewater Fund Revenues Expenses
FY 2011-1-20 Budget
' 113.886,200
$5,306,636
FY 2019-20 Estimate
4,243,218
4,586,327
Difference
� '57,01 N
$(720,309)
9:
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GOLF FUND
Year-end revenue estimates were up by $34,179 over the adopted revenue. This is
attributable to a strong demand for golf since the outbreak of COVID-19. It is one of the
few recreational activities permitted via the Los Angeles County Public Health Department
Administrative Order. Expenses were slightly above budget due to an increase in
operational costs associated increased demand at the golf course and driving range. FY
2019-20 ended with a net operating loss of $68,315. This is a vast improvement over the
average annual shortfall of $260,000.
Topgolf assumed possession and management of the golf course and driving range on
February 15, 2021 and will begin construction shortly. Construction is anticipated to be
completed by Spring 2022. Once this project is up and running:
Golf Fund
Revenues Expenses
FY 2019-20 Adopted Budget
$1,450,667
$1,417,800
FY 2019-20 Estimate
1,484,846
1,553,161
Difference
$34,179
$13 5,361
OTHER FUNDS
The Adopted FY 2019-2020 Citywide Budget also includes a number of other Special
Revenue Funds and Proprietary Funds not included in this year-end update. These funds
will be included in the City's official FY 2019-2020 Comprehensive Annual Financial
Report ("CAFR") which will be presented to City Council by April 20, 2021.
CONCLUSION:
Balancing the FY 2019-2020 was a major challenge since the fiscal year ended under a
radically different scenario then when it started. While the organization was able to make
the necessary adjustments to ensure that each fund ended the year in the black,
considerable financial difficulties remain as the cost of providing services rise and the
effects of COVID-19 continue to impact the local economy. The City will continue to focus
its efforts on keeping local residents and businesses safe during an unprecedented global
pandemic. Expenditures on employee retirement benefits will continue to rise as
CalPERS phases in increased City contributions over the next decade before rates start
to levels and eventually decrease. Medical insurance premiums are also expected to rise.
As the vaccinations progress and the local economy moves forward, there will be
continued financial pressure to reduce City service levels and staffing. As a built -out
urban city, El Segundo will continue to be impacted by a variety of limitations.
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The current FY 2020-2021 Citywide Budget reflects a General Fund that continues to
subsidize other funds, such as the Solid Waste Fund and CIP Fund. This will place a
further strain on the ability to provide traditional local government services, including
public safety (Police and Fire). Looking forward, progress is being made to ensure long-
term financial sustainability of the Water and Wastewater Funds. The recurring General
Fund subsidy of the Solid Waste Fund will need to be addressed in the near future.
As explained during the September 2020 FY 2020-2021 Budget Public Hearing,
corrective measures will need to be taken to resolve the General Fund's structural budget
challenge. In the years ahead, the City will continue to grapple with the challenges of
being a full -service City faced with rising costs and an aging local public infrastructure
system. For example, the City's street and sidewalk infrastructure requires millions of
dollars annually in capital and maintenance expenditures in order to maintain existing
levels of service. The City's buildings require a minimum of $2 million in annual
contributions for basic capital and maintenance expenditures.
Potential FY 2021-2022 Budget Balancing Options
Due to the short nine -month cycle for the current FY 2020-2021 Budget, staff began
working on the FY 2021-2022 Budget in December 2020. As the impacts of COVID-19
continue, staff will explore additional budget balancing options, including:
• Review of existing labor contracts and/or changes to future labor contracts
• Use of furloughs (including winter holidays furlough)
Further position reductions
■ Increased use of private contracts/privatization of services
• Regionalization of services
Across-the-board appropriation cuts
■ Continued deferred maintenance
• Sale of City property and assets
End of General Fund subsidies
• Use of General Fund Reserves
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• Revenue enhancements
■ Additional service reductions
Further reorganization of departments
Future Opportunities
Despite numerous challenges facing the City, there are also incredible opportunities. For
example, an estimated $1 billion in new construction is taking place within El Segundo.
There are a number of exciting new large-scale developments in the works that are
scheduled to come on-line in FY 2021-2022, such as the new world headquarters for
Beyond Meat which will house 1,000 employees at 888 North Douglas and the new
Topgolf $40 million nine -hole golf course and driving range renovation development at
The Lakes at El Segundo on Pacific Coast Highway. These type of major investments
reflect the private sector's optimistic view of the local economy beyond COVID-19.
On August 18, 2020, City Council approved soliciting proposals from planning firms to
update the 2000 Downtown Specific Plan and to request qualifications from developers
to redevelop the Civic Center site to revitalize and reimagine the future of Downtown El
Segundo. There has been considerable interest to simultaneously maintain the existing
historic charm of downtown while introducing an exciting series of opportunities to allow
local businesses to be ready to thrive in the post COVID-19 economy. This is another
example of how the local economy will be poised for future success.
On balance, the glass is more half full than half empty. A lot will depend on future belt -
tightening by the City organization, duration of the Coronavirus, and strength of the
national economic recovery.
Long -Term Financial Strategic Planning
Staff has begun work to develop a comprehensive Ten -Year Long -Term Financial
Strategic Plan. This Plan will help the City remain fiscally prudent and be prepared for
economic downturns, rising pension costs, and other conditions which may result in
unanticipated fiscal challenges. The first draft is near completion and will be presented
to the City Manager in March 2021. Staff will then incorporate feedback from the City
Manager and present to City Council for review and adoption prior to the start of FY 2021-
2021.
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Biennial Budget Format
After FY 2020-2021, staff will pursue converting from an "Annual Budget" format to a two
year "Biennial Budget" format to reduce internal costs and inefficiencies associated with
preparing a budget every year. In addition to saving money associated with the budget
preparation costs, this format forces cities to look further down the road and beyond just
the next 12 months. Biennial budgeting has proven to be an effective forward -thinking
financial planning tool in other cities, and it will have the same benefits here in El
Segundo.
NEXT STEPS:
FY 2019-2020 Budget
After receiving and filing this year-end report, staff will continue to work with the outside
financial auditor to complete the City's official FY 2019-2020 Comprehensive Annual
Financial Report ("CAFR") for all City funds. This will be presented to City Council by
April 20, 2021.
FY 2020-2021 Budget
Staff is scheduled to present the FY 2020-2021 Citywide Budget Mid -Year Report to City
Council on March 16, 2021.
FY 2021-2022 Budget
A series of presentations will be made to City Council on the Proposed FY 2021-2022
Citywide Budget, including the following:
• Strategic Planning Study Session (Sometime in April 2021)
• Proposed FY 2021-2022 Budget Study Session (April or May 2021)
• Proposed FY 2021-2022 Budget Public Hearing and Adoption (June 15, 2021)
CITY STRATEGIC PLAN COMPLIANCE:
Goal 5: Champion Economic Development and Fiscal Sustainability:
Objective B: El Segundo approaches its work in a financially strategic and responsible
way.
PREPARED BY: Joseph Lillio, Chief Financial Officer 9P
APPROVED BY: Scott Mitnick, City Manager 0 ckul 4
ATTACHED SUPPORTING DOCUMENTS: None
File Name: N://asotelo/staff reports/budgetreport
312
CITY OF
E L S E GU N D O City Council Agenda Statement
Meeting Date: February 16, 2021
Agenda Heading: Staff Presentations
TITLE:
Update Model Floodplain Management Ordinance
RECOMMENDATION:
Introduce a proposed ordinance amending City's Model Floodplain Management
Ordinance and place on the March 2, 2021 City Council agenda for second reading and
adoption.
FISCAL IMPACT:
No direct fiscal impact to the City for updating the City's Floodplain Management
Ordinance. However, there are indirect financial benefits to the City, local residents, and
businesses to ensure federal flood insurance protection that would not be provided
without updating this ordinance.
ENVIRONMENTL CONSIDERATION:
This Ordinance is categorically exempt from review under the California Environmental
Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the
regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq.,
the "CEQA Guidelines") because it consists of an action taken by the City to ensure the
maintenance and protection of the environment. Accordingly, the Ordinance constitutes
a Class 8 exemption pursuant to CEQA Guidelines § 15308.
BACKGROUND:
The National Flood Insurance Program ("NFIP") is a federal program which was enacted
to mitigate flood losses through national community enforced building and zoning
requirements. NFIP provides federally -backed flood insurance protection for property
owners in communities, such as the City of El Segundo, that participate in the NFIP. The
NFIP is administered by the Federal Emergency Management Agency ("FEMA").
In 2009, the City Council adopted floodplain management regulations via Ordinance No.
1427. Floodplain management regulations that comply with federal regulations must be
adopted by the local city governing board for local residents and businesses to be eligible
to purchase federally -subsidized flood insurance.
DISCUSSION:
On December 9, 2020, FEMA staff reviewed the City's Floodplain Management
Ordinance and determined that it must be amended to comply with current federal
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Updated Model Floodplain Management Ordinance
February16, 2021
Page 2 of 2
requirements. FEMA has advised the City that the updated ordinance must be adopted
by April 20, 2021. If the ordinance is not adopted by the deadline, the City will be placed
into the NFIP "suspension status" and removed from the program.
CONCLUSION:
As a result of current circumstances and FEMA's requirements, it is recommended that
City Council adopt the updated ordinance which makes one technical amendment to add
the following section:
Section 1.05 - STATUTORY AUTHORIZATION.
The Legislature of the State of California has in Government Code Sections
65302, 65560, and 65800 conferred upon local governments the authority
to adopt regulations designed to promote the public health, safety, and
general welfare of its citizenry. Therefore, the City of El Segundo of Los
Angeles County does hereby adopt the floodplain management
regulations."
NEXT STEPS:
If the first reading of the amended ordinance is approved, the proposed updated Model
Floodplain Management Ordinance will be placed on the March 2, 2021 City Council
agenda for second reading and adoption. If approved on Mach 2"d, the updated
ordinance will go into effect by FEMA's April 20, 2021 deadline.
PREPARED BY: Elias Sassoon, Public Works Director
APPROVED BY: Barbara Voss, Deputy City Manager
ATTACHMENTS:
1. Amended Model Floodplain Management Ordinance
2. Ordinance No. 1427 (adopted March 3, 2009)
File name: SM\Update Floodplain Ordinance Staff Report February 16, 2021
314
ORDINANCE NO.
AN ORDINANCE AMENDING THE MODEL FLOODPLAIN
MANAGEMENT ORDINANCE FOR SPECIAL FLOOD HAZARDS WITHIN
THE CITY IN ORDER TO MAINTAIN ELIGIBILITY WITH THE NATIONAL
FLOOD INSURANCE PROGRAM (ENVIRONMENTAL ASSESSMENT
NO. 812)
The City Council of the City of El Segundo does ordain as follows:
SECTION 1. The City Council finds and determines as follows:
A. The special flood hazard areas of El Segundo are subject to periodic
inundation which results in life and property, health and safety hazards,
disruption of commerce and government services, extraordinary public
expenditures for flood protection and relief, and impairment of the tax base,
all of which adversely affect the public health, safety and general welfare;
B. These flood losses are caused by uses that are inadequately elevated,
floodproofed, or protected from flood damage. The cumulative effect of
obstructions in areas of special flood hazards which increase flood heights
and velocities also contributes to flood losses;
C. The National Flood Insurance Program ("NFIP") is a Federal program which
was enacted to mitigate flood losses through national community enforced
building and zoning requirements. The NFIP provides federally -backed
flood insurance protection for property owners in communities, such as the
City of El Segundo, that participate in the NFIP. The NFIP is administered
by the Federal Emergency Management Agency ("FEMA");
D. In order for City residents to be eligible to purchase federally -subsidized
flood insurance, cities must adopt floodplain management regulations which
meet or exceed the requirements set forth in Title 44, Part 60 of the Code
of Federal Regulations;
E. In March 2009, the City Council adopted floodplain management
regulations via Ordinance No. 1427;
F. On December 9, 2020, FEMA reviewed the City's floodplain management
ordinance and determined that it must be amended to comply with the
minimum requirements of the NFIP;
G. To ensure that City residents remain eligible to purchase federally -
subsidized flood insurance, the City Council desires to adopt this ordinance.
SECTION 2. Environmental Assessment. The City Council determines that this
ordinance is categorically exempt from review under the California Environmental Quality
Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations
Page 1 of 3 315
promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA
Guidelines") because it consists of an action taken by the City to ensure the maintenance
and protection of the environment. Accordingly, the Ordinance constitutes a Class 8
exemption pursuant to CEQA Guidelines § 15308.
SECTION 3. The City of El Segundo's Floodplain Management Regulations, attached as
"Exhibit A" to Ordinance No. 1427, are amended to add the following section:
"1.05 STATUTORY AUTHORIZATION.
The Legislature of the State of California has in Government Code Sections
65302, 65560, and 65800 conferred upon local governments the authority
to adopt regulations designed to promote the public health, safety, and
general welfare of its citizenry. Therefore, the City of El Segundo of Los
Angeles County does hereby adopt the following floodplain management
regulations."
SECTION 4. The City Manager is authorized to promulgate such administrative policies
and procedures that may be required to implement this ordinance.
SECTION 5. Validity of Previous Code Sections. If the entire Ordinance or its application
is deemed invalid by a court of competent jurisdiction, any repeal of the ESMC or other
regulation by this Ordinance will be rendered void and cause such ESMC provision or
other regulation to remain in full force and effect for all purposes.
SECTION 6. Enforceability. Repeal or amendment of any previous Code Sections does
not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and
imposition of penalties for any violation occurring before this Ordinance's effective date.
Any such repealed part will remain in full force and effect for sustaining action or
prosecuting violations occurring before the effective date of this Ordinance.
SECTION 7. Severability. If any part of this Ordinance or its application is deemed invalid
by a court of competent jurisdiction, the City Council intends that such invalidity will not
affect the effectiveness of the remaining provision or application and, to this end, the
provisions of this Ordinance are severable.
SECTION 8. The City Clerk, or her duly appointed deputy, is directed to certify the
passage and adoption of this Ordinance; cause it to be entered into the City of El
Segundo's book of original ordinances; make a note of the passage and adoption in the
records of this meeting; and, within fifteen (15) days after the passage and adoption of
this Ordinance, cause it to be published or posted in accordance with California law.
SECTION 9. Effective Date. This Ordinance will become effective on the 31st day
following its passage and adoption.
PASSED AND ADOPTED this day of , 2021.
2 316
Drew Boyles, Mayor
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Ordinance No. was duly introduced by said City Council at a regular meeting held
on the day of , 2021, and was duly passed and adopted by said City
Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a
regular meeting of said Council held on the day of 2021, and the same
was so passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
3 317
Exhibit A
318
ORDINANCE NO. 1427
AN ORDINANCE ADOPTING THE MODEL FLOODPLAIN
MANAGEMENT ORDINANCE FOR SPECIAL FLOOD HAZARDS
WITHIN THE CITY IN ORDER TO MAINTAIN ELIGIBILITY WITHIN THE
NATIONAL FLOOD INSURANCE PROGRAM (ENVIRONMENTAL
ASSESSMENT NO. 812).
The City Council of the City of El Segundo does ordain as follows:
SECTION 1: The City Council finds and declares that:
A. The special flood hazard areas of El
inundation which results in loss of life
hazards, disruption of commerce
extraordinary public expenditures for
impairment of the tax base, all of which
safety, and general welfare;
Segundo are subject to periodic
and property, health and safety
and governmental services,
flood protection and relief, and
adversely affect the public health,
B. These flood losses are caused by uses that are inadequately elevated,
floodproofed, or protected from flood damage. The cumulative effect of
obstructions in areas of special flood hazards which increase flood heights
and velocities also contributes to flood losses;
C. In order for City residents to be eligible to purchase federally -subsidized
flood insurance, cities must adopt floodplain management regulations
which meet or exceed the requirements set forth in Title 44, Part 60 of the
Code of Federal Regulations;
D. On December 12, 2008 the City of El Segundo filed an application for an
Environmental Assessment (EA-812) for Floodplain Management
Regulations for areas of special flood hazards within the City of El
Segundo;
E The City reviewed the project's environmental impacts under the California
Environmental Quality Act (Public Resources Code §§ 21000, et seq.,
"CEQA"), the regulations promulgated thereunder (14 Cal. Code of
Regulations §§15000, et seq., the "CEQA Guidelines"), and the City's
Environmental Guidelines (City Council Resolution No. 3805, adopted
March 16, 1993);
F. On February 17, 2009, the City Council held a public hearing regarding
the Ordinance for Floodplain Management Regulations. Based on the
evidence submitted during the City Council public hearing, staff
recommendations, and Council deliberations, it is in the public interest to
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adopt this Ordinance;
G. The adoption of this Ordinance will allow residents of the City of El
Segundo to remain eligible to purchase flood insurance through the
National Flood Insurance Program. The Ordinance meets the minimum
standards set forth in Title 44, Section 60.3 of the Code of Federal
Regulations;
SECTION 2; General Plan Consistency, The Floodplain Management Ordinance is
consistent with General Plan Goals, Objectives and Policies related to the Public Safety
Element of the General Plan. Specifically, the amendment is consistent with Public
Safety Element Goals, Objectives and Policies that include: Goal PS2, Policy PS2-1.4
"Identify potential high -risk inundation coastal areas and manage them to reduce risk."
and Goal PS5, Objective PS5-1 "It is the Objective of the City of El Segundo that the
City improve flood control systems and provide adequate protection in areas subject to
inundation." The Floodplain Management Ordinance complies with PS2 in that the
Floodplain Ordinance regulates construction in order to protect human life and health
and minimize damage to structures in special flood hazard areas identified and mapped
by the Federal Emergency Management Agency (FEMA). The Floodplain Management
Ordinance complies with PS5 in that it requires that new construction in areas
vulnerable to floods be protected against flood damage.
SECTION 3: Coastal Plan Consistency. The City of El Segundo coastal zone consists
of an area of approximately 50 acres in area. The linear extent of beach frontage is
slightly less than one mile and the coastal zone in this area is approximately 200 yards
in width. The special flood hazard area appears to be roughly contiguous with the
portion of the City's coastal zone designated as "shoreline" area within the City's Local
Coastal Program (LCP). The Floodplain Management Ordinance does not conflict with
the City's adopted LCP policies regarding development in that no additional uses or
change to the uses allowed within the shoreline area of the coastal zone will result from
the adoption of the Ordinance. The LCP allows for the construction of beach facilities,
such as lifeguard towers and rest room facilities and allows for above or below grade
facilities required as part of the operation of coastal dependant energy facilities. The
Floodplain Management Ordinance's effect is limited to requiring that any new
construction or substantial improvement to existing structures will have to comply with
the "standards of construction" identified in the Ordinance.
SECTION 4: Environmental Assessment. The City Council determines that this
Ordinance is Categorically Exempt from review under the California Environmental
Quality Act (California Public Resources Code §§21000, et seq., "CEQA") and the
regulations promulgated thereunder (14 California Code of Regulations §§15000, et
seq., the "CEQA Guidelines") because it consists of an action taken the City to ensure
the maintenance and protection of the environment. Accordingly, the Ordinance
constitutes a Class 8 exemption pursuant to CEQA Guidelines § 15308.
SECTION 5: The Model Ordinance for Floodplain Management, attached as Exhibit "A,"
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and incorporated by reference, is adopted. The City Manager is authorized to
promulgate such administrative policies and procedures that may be required to
implement this Ordinance.
SECTION 6 If any part of this Ordinance or its application is deemed invalid by a court
of competent jurisdiction, the city council intends that such invalidity will not affect the
effectiveness of the remaining provisions or applications and, to this end; the provisions
of this Ordinance are severable.
SECTION 7: Limitations. The City Council's analysis and evaluation of the project is
based on the best information currently available. It is inevitable that in evaluating a
project that absolute and perfect knowledge of all possible aspects of the project will not
exist. One of the major limitations on analysis of the project is the City Council's lack of
knowledge of future events. In all instances, best efforts have been made to form
accurate assumptions. Somewhat related to this are the limitations on the City's ability
to solve what are in effect regional, state, and national problems and issues. The City
must work within the political framework within which it exists and with the limitations
inherent in that framework.
SECTION & Repeal or amendment of any provision of the ESMC will not affect any
penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of
penalties for any violation occurring before this Ordinance's effective date. Any such
repealed part will remain in full force and effect for sustaining action or prosecuting
violations occurring before the effective date of this Ordinance.
SECTION 9: If this entire Ordinance or its application is deemed invalid by a court of
competent jurisdiction, any repeal of the ESMC or other City Ordinance by this
Ordinance will be rendered void and cause such ESMC provision or other the city
ordinance to remain in full force and effect for all purposes.
SECTION 1 0: The City Clerk is directed to certify the passage and adoption of this
Ordinance; cause it to be entered into the City of El Segundo's book of original
ordinances; make a note of the passage and adoption in the records of this meeting;
and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it
to be published or posted in accordance with California law.
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SECTION 11: This Ordinance will become effective on the thirty-first (31st) day
following its passage and adoption.
PASSED AND ADOPTED this 3`1 day of March 2009.
&(t (�4__ -
Kelly McDowell, Mayxz
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Ordinance No. 1427 was duly introduced by said City Council at a regular meeting held
on the 17th day of February, 2009, and was duly passed and adopted by said City
Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a
regular meeting of said Council held on the 3`d day of March, 2009, and the same was
so passed and adopted by the following vote:
AYES: McDowell, Busch, Brann, Fisher, Jacobson
NOES: None
ABSENT: None
ABSTAIN: None
s :7
Cindy Morten, City Clerk
APPROVED
Mark D. Hen
Karl H. Berger
Assistant City ttorney
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EXHIBIT "A"
FLOODPLAIN MANAGEMENT REGULATIONS
SECTION 1.0
PURPOSE AND METHODS
1.1 STATEMENT OF PURPOSE.
It is the purpose of this ordinance to promote the public health, safety, and general welfare, and to minimize
public and private losses due to flood conditions in specific areas by legally enforceable regulations applied
uniformly throughout the community to all publicly and privately owned land within flood prone, mudslide [i.e,
mudflow] or flood related erosion areas These regulations are designed to:
A. Protect human life and health;
B. Minimize expenditure of public money for costly flood control projects;
C. Minimize the need for rescue and relief efforts associated with flooding and generally undertaken at
the expense of the general public.
D. Minimize prolonged business interruptions,
E. Minimize damage to public facilities and utilities such as water and gas mains; electric, telephone and
sewer lines; and streets and bridges located in areas of special flood hazard;
F. Help maintain a stable tax base by providing for the sound use and development of areas of special
flood hazard so as to minimize future blighted areas caused by flood damage;
G. Ensure that potential buyers are notified that property is in an area of special flood hazard; and
H. Ensure that those who occupy the areas of special flood hazard assume responsibility for their
actions.
1.2 METHODS OF REDUCING FLOOD LOSSES.
In order to accomplish its purposes, this ordinance includes regulations to:
A. Restrict or prohibit uses which are dangerous to health, safety, and property due to water or erosion
hazards, or which result in damaging increases in erosion or flood heights or velocities;
B. Require that uses vulnerable to floods, including facilities which serve such uses, be protected against
flood damage at the time of initial construction,
C. Control the alteration of natural floodplains, stream channels, and natural protective barriers, which
help accommodate or channel floodwaters;
D. Control filling, grading, dredging, and other development which may increase flood damage; and
E. Prevent or regulate the construction of flood barriers which will unnaturally divert floodwaters or which
may increase flood hazards in other areas
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SECTION 2.0
DEFINITIONS
Unless specifically defined below, words or phrases used in this ordinance shall be interpreted so as to give them
the meaning they have in common usage and to give this ordinance its most reasonable application.
"A zone" - see "Special flood hazard area"
"Accessory structure" means a structure that is either:
1. Solely for the parking of no more than 2 cars; or
2. A small, low cost shed for limited storage, less than 150 square feet and $1,500 in value.
"Accessory use" means a use which is incidental and subordinate to the principal use of the parcel of land on
which it is located.
"Alluvial fan" means a geomorphologic feature characterized by a cone or fan -shaped deposit of boulders, gravel,
and fine sediments that have been eroded from mountain slopes, transported by flood flows, and then deposited
on the valley floors, and which is subject to flash flooding, high velocity flows, debris flows, erosion, sediment
movement and deposition, and channel migration
"Apex" means a point on an alluvial fan or similar landform below which the flow path of the major stream that
formed the fan becomes unpredictable and alluvial fan flooding can occur.
"Appeal" means a request for a review of the Floodplain Administrator's interpretation of any provision of this
ordinance.
"Area of shallow flooding" means a designated AO or AH Zone on the Flood Insurance Rate Map (FIRM). The
base flood depths range from one to three feet; a clearly defined channel does not exist; the path of flooding is
unpredictable and indeterminate; and velocity flow may be evident. Such flooding is characterized by ponding or
sheet flow.
"Area of special flood hazard" - See "Special flood hazard area."
"Base flood" means a flood which has a one percent chance of being equaled or exceeded in any given year
(also called the 100-year flood") Base flood is the term used throughout this ordinance.
"Base flood elevation" (BFE) means the elevation shown on the Flood Insurance Rate Map for Zones AE, AH,
Al-30, VE and V1-V30 that indicates the water surface elevation resulting from a flood that has a 1-percent or
greater chance of being equaled or exceeded in any given year
"Basement" means any area of the building having its floor subgrade - i.e., below ground level - on all sides.
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"Breakaway walls" are any type of walls, whether solid or lattice, and whether constructed of concrete, masonry,
wood, metal, plastic or any other suitable building material which is not part of the structural support of the building
and which is designed to break away under abnormally high tides or wave action without causing any damage to
the structural integrity of the building on which they are used or any buildings to which they might be carried by
flood waters. A breakaway wall shall have a safe design loading resistance of not less than 10 and no more than
20 pounds per square foot. Use of breakaway walls must be certified by a registered engineer or architect and
shall meet the following conditions:
1. Breakaway wall collapse shall result from a water load less than that which would occur during the base
flood; and
2 The elevated portion of the building shall not incur any structural damage due to the effects of wind and
water loads acting simultaneously in the event of the base flood.
"Building" - see "Structure"
"Coastal high hazard area" means an area of special flood hazard extending from offshore to the inland limit of a
primary frontal dune along an open coast and any other area subject to high velocity wave action from storms or
seismic sources It is an area subject to high velocity waters, including coastal and tidal inundation or tsunamis.
The area is designated on a Flood Insurance Rate Map (FIRM) as Zone V1-V30, VE, or V
"Development" means any man-made change to improved or unimproved real estate, including but not limited to
buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations or storage
of equipment or materials
"Encroachment" means the advance or infringement of uses, plant growth, fill, excavation, buildings, permanent
structures or development into a floodplain which may impede or alter the flow capacity of a floodplain
"Existing manufactured home park or subdivision" means a manufactured home park or subdivision for which
the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including, at
a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of
concrete pads) is completed before September 26, 2008
"Expansion to an existing manufactured home park or subdivision" means the preparation of additional sites
by the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including
the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads).
"Flood, flooding, or flood water" means:
1 A general and temporary condition of partial or complete inundation of normally dry land areas from the
overflow of inland or tidal waters; the unusual and rapid accumulation or runoff of surface waters from any
source; and/or mudslides (i.e., mudflows); and
2. The condition resulting from flood -related erosion.
"Flood Boundary and Floodway Map (FBFM)" means the official map on which the Federal Emergency
Management Agency or Federal Insurance Administration has delineated both the areas of special flood hazards
and the floodway.
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"Flood Insurance Rate Map (FIRM)" means the official map on which the Federal Emergency Management
Agency or Federal Insurance Administration has delineated both the areas of special flood hazards and the risk
premium zones applicable to the community.
"Flood Insurance Study" means the official report provided by the Federal Insurance Administration that includes
flood profiles, the Flood Insurance Rate Map, the Flood Boundary and Floodway Map, and the water surface
elevation of the base flood.
"Floodplain or flood -prone area" means any land area susceptible to being inundated by water from any source
- see "Flooding."
"Floodplain Administrator" is the community official designated by title to administer and enforce the floodplain
management regulations
"Floodplain management" means the operation of an overall program of corrective and preventive measures for
reducing flood damage and preserving and enhancing, where possible, natural resources in the floodplain,
including but not limited to emergency preparedness plans, flood control works, floodplain management
regulations, and open space plans
"Floodplain management regulations" means this ordinance and other zoning ordinances, subdivision
regulations, building codes, health regulations, special purpose ordinances (such as grading and erosion control)
and other application of police power which control development in flood -prone areas. This term describes
federal, state or local regulations in any combination thereof which provide standards for preventing and reducing
flood loss and damage
"Flood proofing" means any combination of structural and nonstructural additions, changes, or adjustments to
structures which reduce or eliminate flood damage to real estate or improved real property, water and sanitary
facilities, structures, and their contents For guidelines on dry and wet floodproofing, see the applicable FEMA
Technical Bulletins TB-1. TB-3 and TB-7
"Floodway" means the channel of a river or other watercourse and the adjacent land areas that must be reserved
in order to discharge the base flood without cumulatively increasing the water surface elevation more than one
foot. Also referred to as "Regulatory Floodway "
"Floodway fringe" is that area of the floodplain on either side of the "Regulatory Floodway" where encroachment
may be permitted.
"Fraud and victimization" as related to Section 6.0, means that the variance granted must not cause fraud on or
victimization of the public In examining this requirement, the City Council will consider the fact that every newly
constructed building adds to government responsibilities and remains a part of the community for fifty to
one -hundred years. Buildings that are permitted to be constructed below the base flood elevation are subject
during all those years to increased risk of damage from floods, while future owners of the property and the
community as a whole are subject to all the costs, inconvenience, danger, and suffering that those increased flood
damages bring. In addition, future owners may purchase the property, unaware that it is subject to potential flood
damage, and can be insured only at very high flood insurance rates.
"Functionally dependent use" means a use which cannot perform its intended purpose unless it is located or
carried out in close proximity to water The term includes only docking facilities, port facilities that are necessary
for the loading and unloading of cargo or passengers, and ship building and ship repair facilities, and does not
include long-term storage or related manufacturing facilities
"Governing body" is the local governing unit, i e county or municipality, that is empowered to adopt and
implement regulations to provide for the public health, safety and general welfare of its citizenry.
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"Hardship" as related to Section 6 means the exceptional hardship that would result from a failure to grant the
requested variance. The City Council requires that the variance be exceptional, unusual, and peculiar to the
property involved. Mere economic or financial hardship alone is not exceptional. Inconvenience, aesthetic
considerations, physical handicaps, personal preferences, or the disapproval of one's neighbors likewise cannot,
as a rule, qualify as an exceptional hardship. All of these problems can be resolved through other means without
granting a variance, even if the alternative is more expensive, or requires the property owner to build elsewhere or
put the parcel to a different use than originally intended
"Highest adjacent grade" means the highest natural elevation of the ground surface prior to construction next to
the proposed walls of a structure
"Historic structure" means any structure that is:
1. Listed individually in the National Register of Historic Places (a listing maintained by the Department of
Interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for
individual listing on the National Register:
2. Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical
significance of a registered historic district or a district preliminarily determined by the Secretary to qualify
as a registered historic district,
3. Individually listed on a state inventory of historic places in states with historic preservation programs which
have been approved by the Secretary of Interior; or
4. Individually listed on a local inventory of historic places in communities with historic preservation programs
that have been certified either by an approved state program as determined by the Secretary of the
Interior or directly by the Secretary of the Interior in states without approved programs.
"Levee" means a man-made structure, usually an earthen embankment, designed and constructed in accordance
with sound engineering practices to contain, control or divert the flow of water so as to provide protection from
temporary flooding.
"Levee system" means a flood protection system which consists of a levee, or levees, and associated structures,
such as closure and drainage devices, which are constructed and operated in accord with sound engineering
practices.
"Lowest floor" means the lowest floor of the lowest enclosed area, including basement (see "Basement"
definition).
1. An unfinished or flood resistant enclosure below the lowest floor that is usable solely for parking of
vehicles, building access or storage in an area other than a basement area, is not considered a building's
lowest floor provided it conforms to applicable non -elevation design requirements, including, but not
limited to:
a. The flood openings standard in Section 5.1 _C.3;
b. The anchoring standards in Section 5.1.A;
c. The construction materials and methods standards in Section 5.12; and
d The standards for utilities in Section 5.2.
2 For residential structures, all subgrade enclosed areas are prohibited as they are considered to be
basements (see "Basement" definition) This prohibition includes below -grade garages and storage
areas
"Manufactured home" means a structure, transportable in one or more sections, which is built on a permanent
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chassis and is designed for use with or without a permanent foundation when attached to the required utilities
The term "manufactured home" does not include a "recreational vehicle"
"Manufactured home park or subdivision" means a parcel (or contiguous parcels) of land divided into two or
more manufactured home lots for rent or sale
"Market value" is defined in the City of El Segundo substantial damage/improvement procedures. See Section
4.2.13.1.
"Mean sea level" means, for purposes of the National Flood Insurance Program, the National Geodetic Vertical
Datum (NGVD) of 1929, North American Vertical Datum (NAVD) of 1988, or other datum, to which base flood
elevations shown on a community's Flood Insurance Rate Map are referenced.
"New construction", for floodplain management purposes, means structures for which the "start of construction"
commenced on or after September 26. 2008, and includes any subsequent improvements to such structures.
"New manufactured home park or subdivision" means a manufactured home park or subdivision for which the
construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including at a
minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of
concrete pads) is completed on or after September 26, 2008.
"Obstruction" includes, but is not limited to, any dam, wall, wharf, embankment, levee, dike, pile, abutment,
protection, excavation, channelization, bridge, conduit, culvert, building, wire, fence, rock, gravel, refuse, fill,
structure, vegetation or other material in, along, across or projecting into any watercourse which may alter,
impede, retard or change the direction and/or velocity of the flow of water, or due to its location, its propensity to
snare or collect debris carried by the flow of water, or its likelihood of being carried downstream.
"One -hundred -year flood" or 100-year flood" - see "Base flood "
"Primary frontal dune" means a continuous or nearly continuous mound or ridge of sand with relatively steep
seaward and landward slopes immediately landward and adjacent to the beach and subject to erosion and
overtopping from high tides and waves during major coastal storms The inland limit of the primary frontal dune
occurs at the point where there is a distinct change from a relatively mild slope
"Program deficiency" means a defect in a community's floodplain management regulations or administrative
procedures that impairs effective implementation of those floodplain management regulations.
"Public safety and nuisance" as related to Section 6, means that the granting of a variance must not result in
anything which is injurious to safety or health of an entire community or neighborhood, or any considerable
number of persons, or unlawfully obstructs the free passage or use, in the customary manner, of any navigable
lake, or river, bay, stream, canal, or basin
"Recreational vehicle" means a vehicle which is
1. Built on a single chassis;
2 400 square feet or less when measured at the largest horizontal projection;
3. Designed to be self-propelled or permanently towable by a light -duty truck. and
4 Designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational,
camping, travel, or seasonal use
"Regulatory floodway" means the channel of a river or other watercourse and the adjacent land areas that must
be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more
than one foot
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"Remedy a violation" means to bring the structure or other development into compliance with State or local
floodplain management regulations, or if this is not possible, to reduce the impacts of its noncompliance. Ways
that impacts may be reduced include protecting the structure or other affected development from flood damages,
implementing the enforcement provisions of the ordinance or otherwise deterring future similar violations, or
reducing State or Federal financial exposure with regard to the structure or other development.
"Riverine" means relating to, formed by, or resembling a river (including tributaries), stream, brook, etc.
"Sand dunes" mean naturally occurring accumulations of sand in ridges or mounds landward of the beach.
"Sheet flow area" - see "Area of shallow flooding "
"Special flood hazard area (SFHA)" means an area in the floodplain subject to a 1 percent or greater chance of
flooding in any given year It is shown on an FHBM or FIRM as Zone A AO, Al-A30, AE. A99, AH, Vl-V30, VE or
V.
"Start of construction" includes substantial improvement and other proposed new development and means the
date the building permit was issued, provided the actual start of construction, repair, reconstruction, rehabilitation,
addition, placement, or other improvement was within 180 days from the date of the permit. The actual start
means either the first placement of permanent construction of a structure on a site, such as the pouring of slab or
footings, the installation of piles, the construction of columns, or any work beyond the stage of excavation; or the
placement of a manufacture home on a foundation. Permanent construction does not include land preparation,
such as clearing, grading, and filling; nor does it include the installation of streets and/or walkways; nor does it
include excavation for a basement, footings, piers, or foundations or the erection of temporary forms; nor does it
include the installation on the property of accessory buildings, such as garages or sheds not occupied as dwelling
units or not part of the main structure. For a substantial improvement, the actual start of construction means the
first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects
the external dimensions of the building.
"Structure" means a walled and roofed building that is principally above ground; this includes a gas or liquid
storage tank or a manufactured home
"Substantial damage" means damage of any origin sustained by a structure whereby the cost of restoring the
structure to its before damaged condition would equal or exceed 50 percent of the market value of the structure
before the damage occurred
"Substantial improvement" means any reconstruction, rehabilitation, addition, or other improvement of a
structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the "start of
construction" of the improvement. This term includes structures which have incurred "substantial damage",
regardless of the actual repair work performed The term does not, however, include either:
1. Any project for improvement of a structure to correct existing violations or state or local health, sanitary, or
safety code specifications which have been identified by the local code enforcement official and which are
the minimum necessary to assure safe living conditions; or
2. Any alteration of a "historic structure," provided that the alteration will not preclude the structure's
continued designation as a "historic structure."
" V zone" - see "Coastal high hazard area."
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"Variance" means a grant of relief from the requirements of this ordinance which permits construction in a manner
that would otherwise be prohibited by this ordinance
"Violation" means the failure of a structure or other development to be fully compliant with this ordinance. A
structure or other development without the elevation certificate, other certifications, or other evidence of
compliance required in this ordinance is presumed to be in violation until such time as that documentation is
provided.
"Water surface elevation" means the height, in relation to the National Geodetic Vertical Datum (NGVD) of 1929,
North American Vertical Datum (NAVD) of 1988, or other datum, of floods of various magnitudes and frequencies
in the floodplains of coastal or riverine areas
"Watercourse" means a lake, river, creek, stream, wash, arroyo, channel or other topographic feature on or over
which waters flow at least periodically. Watercourse includes specifically designated areas in which substantial
flood damage may occur
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SECTION 3.0
GENERAL PROVISIONS
3.1 LANDS TO WHICH THIS ORDINANCE APPLIES.
This ordinance shall apply to all areas of special flood hazards within the jurisdiction of the City of El Segundo.
3.2 BASIS FOR ESTABLISHING THE AREAS OF SPECIAL FLOOD HAZARD
The areas of special flood hazard identified by the Federal Emergency Management Agency (FEMA) in the
"Flood Insurance Study (FIS) for Los Angeles County, California and Incorporated Areas" dated September
26, 2008, with accompanying Flood Insurance Rate Maps (FIRM's) and Flood Boundary and Floodway Maps
(FBFM's), dated September 26, 2008, and all subsequent amendments and/or revisions, are hereby adopted
by reference and declared to be a part of this ordinance This FIS and attendant mapping is the minimum
area of applicability of this ordinance and may be supplemented by studies for other areas which allow
implementation of this ordinance and which are recommended to the City Council by the Floodplain
Administrator. The study, FIRM's and FBFM's are on file at the Department of Planning and Building Safety,
350 Main Street, El Segundo, CA.
3.3 COMPLIANCE.
No structure or land shall hereafter be constructed, located, extended, converted, or altered without full compliance
with the terms of this ordinance and other applicable regulations. Violation of the requirements (including violations
of conditions and safeguards) shall constitute a misdemeanor. Nothing herein shall prevent the City Council from
taking such lawful action as is necessary to prevent or remedy any violation.
3.4 ABROGATION AND GREATER RESTRICTIONS.
This ordinance is not intended to repeal, abrogate, or impair any existing easements, covenants, or deed
restrictions However, where this ordinance and another ordinance, easement, covenant, or deed restriction
conflict or overlap, whichever imposes the more stringent restrictions shall prevail
3.5 INTERPRETATION.
In the interpretation and application of this ordinance, all provisions shall be:
A. Considered as minimum requirements;
B. Liberally construed in favor of the governing body; and
C Deemed neither to limit nor repeal any other powers granted under state statutes
3.6 WARNING AND DISCLAIMER OF LIABILITY.
The degree of flood protection required by this ordinance is considered reasonable for regulatory purposes and is
based on scientific and engineering considerations. Larger floods can and will occur on rare occasions. Flood
heights may be increased by man-made or natural causes. This ordinance does not imply that land outside the
areas of special flood hazards or uses permitted within such areas will be free from flooding or flood damages. This
ordinance shall not create liability on the part of the City of El Segundo, any officer or employee thereof, the State of
California, or the Federal Emergency Management Agency, for any flood damages that result from reliance on this
ordinance or any administrative decision lawfully made hereunder.
3.7 SEVERABILITY.
This ordinance and the various parts thereof are hereby declared to be severable. Should any section of this
ordinance be declared by the courts to be unconstitutional or invalid, such decision shall not affect the validity of the
ordinance as a whole, or any portion thereof other than the section so declared to be unconstitutional or invalid.
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SECTION 4.0
ADMINISTRATION
4.1 DESIGNATION OF THE FLOODPLAIN ADMINISTRATOR.
The City Manager or his/her authorized designee is hereby appointed to administer, implement, and enforce
this ordinance by granting or denying development permits in accord with its provisions.
4.2 DUTIES AND RESPONSIBILITIES OF THE FLOODPLAIN ADMINISTRATOR.
The duties and responsibilities of the Floodplain Administrator shall include, but not be limited to the following:
A Permit Review.
Review all development permits to determine:
1 Permit requirements of this ordinance have been satisfied, including determination of substantial
improvement and substantial damage of existing structures;
2 All other required state and federal permits have been obtained:
3. The site is reasonably safe from flooding;
4 The proposed development does not adversely affect the carrying capacity of areas where base
flood elevations have been determined but a floodway has not been designated. This means that
the cumulative effect of the proposed development when combined with all other existing and
anticipated development will not increase the water surface elevation of the base flood more than
1 foot at any point within the City of El Segundo; and
5. All Letters of Map Revision (LOMR's) for flood control projects are approved prior to the issuance
of building permits. Building Permits must not be issued based on Conditional Letters of Map
Revision (CLOMR's). Approved CLOMR's allow construction of the proposed flood control project
and land preparation as specified in the "start of construction" definition.
B. Development of Substantial Improvement and Substantial Damage Procedures.
1 Using FEMA publication FEMA 213, "Answers to Questions About Substantially Damaged
Buildings," develop detailed procedures for identifying and administering requirements for
substantial improvement and substantial damage, to include defining "Market Value."
2 Assure procedures are coordinated with other departments/divisions and implemented by
community staff
C. Review, Use and Development of Other Base Flood Data.
When base flood elevation data has not been provided in accordance with Section 3.2, the Floodplain
Administrator shall obtain, review, and reasonably utilize any base flood elevation and floodway data
available from a federal or state agency, or other source, in order to administer Section 6.
NOTE: A base flood elevation may be obtained using one of two methods from the FEMA publication,
FEMA 265, "Managing Floodplain Development in Approximate Zone A Areas — A Guide for Obtaining
and Developing Base (100-year) Flood Elevations"
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D. notification of Other Agencies.
1. Alteration or relocation of a watercourse:
a. Notify adjacent communities and the California Department of Water Resources prior to
alteration or relocation;
b Submit evidence of such notification to the Federal Emergency Management Agency; and
c Assure that the flood carrying capacity within the altered or relocated portion of said
watercourse is maintained.
2 Base Flood Elevation changes due to physical alterations:
a Within 6 months of information becoming available or project completion, whichever comes
first, the floodplain administrator shall submit or assure that the permit applicant submits
technical or scientific data to FEMA for a Letter of Map Revision (LOMR).
b All LOMR's for flood control projects are approved prior to the issuance of building permits.
Building Permits must not be issued based on Conditional Letters of Map Revision
(CLOMR's). Approved CLOMR's allow construction of the proposed flood control project and
land preparation as specified in the "start of construction" definition.
Such submissions are necessary so that upon confirmation of those physical changes affecting
flooding conditions, risk premium rates and floodplain management requirements are based on
current data.
3 Changes in corporate boundaries
Notify FEMA in writing whenever the corporate boundaries have been modified by annexation or
other means and include a copy of a map of the community clearly delineating the new corporate
limits
E. Documentation of Flood lain Development.
Obtain and maintain for public inspection and make available as needed the following:
1 Certification required by Section 5.1.C.1 and Section 5.4 (lowest floor elevations);
2. Certification required by Section 5.1.C.2 (elevation or floodproofing of nonresidential structures);
3. Certification required by Sections 5.1.C.3 (wet floodproofing standard);
4 Certification of elevation required by Section 5.3.A.3 (subdivisions and other proposed
development standards);
5. Certification required by Section 5.6.13 (floodway encroachments);
6. Information required by Section 5.71 (coastal construction standards); and
7 Maintain a record of all variance actions, including justification for their issuance, and report such
variances issued in its biennial report submitted to the Federal Emergency Management Agency.
F. Map Determination.
Make interpretations where needed, as to the exact location of the boundaries of the areas of special
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flood hazard, where there appears to be a conflict between a mapped boundary and actual field
conditions The person contesting the location of the boundary shall be given a reasonable
opportunity to appeal the interpretation as provided in Section 4.4.
F. Remedial Action.
Take action to remedy violations of this ordinance as specified in Section 3.3.
G. Biennial Report.
Complete and submit Biennial Report to FEMA.
H. Planning.
Assure community's General Plan is consistent with floodplain management objectives herein
4.3 DEVELOPMENT PERMIT
A development permit shall be obtained before any construction or other development, including
manufactured homes, within any area of special flood hazard established in Section 3.2. Application for a
development permit shall be made on forms furnished by the City of El Segundo. The applicant shall provide
the following minimum information:
A. Plans in duplicate, drawn to scale, showing-
1. Location, dimensions, and elevation of the area in question, existing or proposed structures,
storage of materials and equipment and their location;
2 Proposed locations of water supply, sanitary sewer, and other utilities;
3 Grading information showing existing and proposed contours, any proposed till, and drainage
facilities;
4 Location of the regulatory floodway when applicable;
5 Base flood elevation information as specified in Section 3.2 or Section 4.2.C;
6. Proposed elevation in relation to mean sea level, of the lowest floor (including basement) of all
structures; and
7. Proposed elevation in relation to mean sea level to which any nonresidential structure will be
floodproofed, as required in Section 5.1.C.2 of this ordinance and detailed in FEMA Technical
Bulletin TB 3-93
B. Certification from a registered civil engineer or architect that the nonresidential floodproofed building
meets the floodproofing criteria in Section 5.1.C.2
C. For a crawl -space foundation, location and total net area of foundation openings as required in
Section 5.1.C.3 of this ordinance and detailed in FEMA Technical Bulletins 1 and 7.
D. Description of the extent to which any watercourse will be altered or relocated as a result of proposed
development.
E. All appropriate certifications listed in Section 4.2.E of this ordinance.
4.4 APPEALS.
The City Council of the City of El Segundo shall hear and decide appeals when it is alleged there is an error in
any requirement, decision, or determination made by the Floodplain Administrator in the enforcement or
administration of this ordinance
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SECTION 5.0
PROVISIONS FOR FLOOD HAZARD REDUCTION
5.1 STANDARDS OF CONSTRUCTION.
In all areas of special flood hazards the following standards are required
A. Anchoring.
All new construction and substantial improvements of structures, including manufactured homes, shall
be adequately anchored to prevent flotation, collapse or lateral movement of the structure resulting
from hydrodynamic and hydrostatic loads, including the effects of buoyancy.
B. Construction Materials and Methods.
All new construction and substantial improvements of structures, including manufactured homes, shall
be constructed:
1. With flood resistant materials, and utility equipment resistant to flood damage for areas below the
base flood elevation;
2 Using methods and practices that minimize flood damage;
3 With electrical, heating, ventilation, plumbing and air conditioning equipment and other service
facilities that are designed and/or located so as to prevent water from entering or accumulating
within the components during conditions of flooding, and
4 Within Zones AH or AO, so that there are adequate drainage paths around structures on slopes to
guide flood waters around and away from proposed structures
C. Elevation_ and Floodproofing.
1. Residential construction.
All new construction or substantial improvements of residential structures shall have the lowest
floor, including basement:
a. In AE, AH, Al-30 Zones, elevated to or above the base flood elevation.
b. In an AO zone, elevated above the highest adjacent grade to a height equal to or exceeding
the depth number specified in feet on the FIRM, or elevated at least 2 feet above the highest
adjacent grade if no depth number is specified.
c In an A zone, without BFE's specified on the FIRM [unnumbered A zone], elevated to or
above the base flood elevation; as determined under Section 4.2.C.
Upon the completion of the structure, the elevation of the lowest floor, including basement, shall
be certified by a registered civil engineer or licensed land surveyor, and verified by the community
building inspector to be properly elevated Such certification and verification shall be provided to
the Floodplain Administrator
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2. Nonresidential construction.
All new construction or substantial improvements of nonresidential structures shall either be
elevated to conform with Section 5.1.C.1 or:
a. Be fioodproofed, together with attendant utility and sanitary facilities, below the elevation
recommended under Section 5.1.C.1, so that the structure is watertight with walls
substantially impermeable to the passage of water;
b Have structural components capable of resisting hydrostatic and hydrodynamic loads and
effects of buoyancy. and
c. Be certified by a registered civil engineer or architect that the standards of Section 5.1 C.2.a
& b are satisfied Such certification shall be provided to the Floodplain Administrator.
3. Flood openings.
All new construction and substantial improvements of structures with fully enclosed areas below
the lowest floor (excluding basements) that are usable solely for parking of vehicles, building
access or storage, and which are subject to flooding, shall be designed to automatically equalize
hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwater. Designs
for meeting this requirement must meet the following minimum criteria:
a. For non -engineered openings:
1 Have a minimum of two openings on different sides having a total net area of not less
than one square inch for every square foot of enclosed area subject to flooding;
2 The bottom of all openings shall be no higher than one foot above grade;
3 Openings may be equipped with screens, louvers, valves or other coverings or devices
provided that they permit the automatic entry and exit of floodwater; and
4 Buildings with more than one enclosed area must have openings on exterior walls for
each area to allow flood water to directly enter; or
b. Be certified by a registered civil engineer or architect.
4 Manufactured homes.
a. See Section 5.4.
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5 Garacies and low cost accessv structures.
a. Attached garages
1 A garage attached to a residential structure, constructed with the garage floor slab below
the BFE. must be designed to allow for the automatic entry of flood waters. See Section
5.1.C.3. Areas of the garage below the BFE must be constructed with flood resistant
materials. See Section 5.1.6.
2. A garage attached to a nonresidential structure must meet the above requirements or be
dry floodproofed. For guidance on below grade parking areas, see FEMA Technical
Bulletin TB-6
b Detached garages and accessory structures.
1 "Accessory structures" used solely for parking (2 car detached garages or smaller) or
limited storage (small, low-cost sheds), as defined in Section 2, may be constructed such
that its floor is below the base flood elevation (BFE), provided the structure is designed
and constructed in accordance with the following requirements:
a) Use of the accessory structure must be limited to parking or limited storage;
b) The portions of the accessory structure located below the BFE must be built using
flood -resistant materials,
c) The accessory structure must be adequately anchored to prevent flotation, collapse
and lateral movement:
d) Any mechanical and utility equipment in the accessory structure must be elevated or
floodproofed to or above the BFE;
e) The accessory structure must comply with floodplain encroachment provisions in
Section 5.6; and
f) The accessory structure must be designed to allow for the automatic entry of flood
waters in accordance with Section 5.1.C.3.
2. Detached garages and accessory structures not meeting the above standards must be
constructed in accordance with all applicable standards in Section 5.1
5.2 STANDARDS FOR UTILITIES.
A. All new and replacement water supply and sanitary sewage systems shall be designed to minimize or
eliminate:
1. Infiltration of flood waters into the systems; and
2. Discharge from the systems into flood waters
B. On -site waste disposal systems shall be located to avoid impairment to them, or contamination from
them during flooding
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5.3 STANDARDS FOR SUBDIVISIONS AND OTHER PROPOSED DEVELOPMENT.
A. All new subdivisions proposals and other proposed development, including proposals for
manufactured home parks and subdivisions. greater than 50 lots or 5 acres, whichever is the lesser,
shall:
1 Identify the Special Flood Hazard Areas (SFHA) and Base Flood Elevations (BFE)
2. Identify the elevations of lowest floors of ail proposed structures and pads on the final plans.
3. If the site is filled above the base flood elevation, the following as -built information for each
structure shall be certified by a registered civil engineer or licensed land surveyor and provided as
part of an application for a Letter of Map Revision based on Fill (LOMR-F) to the Floodplain
Administrator:
a Lowest floor elevation
b Pad elevation
c. Lowest adjacent grade
B. All subdivision proposals and other proposed development shall be consistent with the need to
minimize flood damage.
C. All subdivision proposals and other proposed development shall have public utilities and facilities such
as sewer, gas, electrical and water systems located and constructed to minimize flood damage.
D. All subdivisions and other proposed development shall provide adequate drainage to reduce exposure
to flood hazards
5.4 STANDARDS FOR MANUFACTURED HOMES.
A. All manufactured homes that are placed or substantially improved, on sites located: (1) outside of a
manufactured home park or subdivision; (2) in a new manufactured home park or subdivision; (3) in
an expansion to an existing manufactured home park or subdivision; or (4) in an existing
manufactured home park or subdivision upon which a manufactured home has incurred "substantial
damage" as the result of a flood, shall:
T Within Zones Al -30, AH, and AE on the community's Flood Insurance Rate Map, be elevated on
a permanent foundation such that the lowest floor of the manufactured home is elevated to or
above the base flood elevation and be securely fastened to an adequately anchored foundation
system to resist flotation, collapse, and lateral movement.
2. Within Zones V1-30, V, and VE on the community's Flood Insurance Rate Map, meet the
requirements of Section 5.7.
B. All manufactured homes to be placed or substantially improved on sites in an existing manufactured
home park or subdivision within Zones Al-30, AH, AE, V1-30, V, and VE on the community's Flood
Insurance Rate Map that are not subject to the provisions of Section 5.4.A will be securely fastened
to an adequately anchored foundation system to resist flotation, collapse, and lateral movement, and
be elevated so that either the:
1 Lowest floor of the manufactured home is at or above the base flood elevation; or
2 Manufactured home chassis is supported by reinforced piers or other foundation elements of at
least equivalent strength that are no less than 36 inches in height above grade
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Upon the completion of the structure, the elevation of the lowest floor including basement shall be certified by
a registered civil engineer or licensed land surveyor, and verified by the community building inspector to be
properly elevated. Such certification and verification shall be provided to the Floodplain Administrator.
5.5 STANDARDS FOR RECREATIONAL VEHICLES.
A. All recreational vehicles placed in Zones Al-30, AH, AE, V1-30 and VE will either:
1. Be on the site for fewer than 180 consecutive days; or
2. Be fully licensed and ready for highway use. A recreational vehicle is ready for highway use if it is
on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and
security devices, and has no permanently attached additions; or
3. Meet the permit requirements of Section 4.3 of this ordinance and the elevation and anchoring
requirements for manufactured homes in Section 5.4.
B. Recreational vehicles placed on sites within Zones V1-30, V, and VE on the community's Flood
Insurance Rate Map will meet the requirements of Section 5.5.A and Section 6.7.
5.6 FLOODWAYS.
Since floodways are an extremely hazardous area due to the velocity of flood waters which carry debris,
potential projectiles, and erosion potential, the following provisions apply:
A. Until a regulatory floodway is adopted, no new construction, substantial development, or other
development (including fill) shall be permitted within Zones Al-30 and AE, unless it is demonstrated
that the cumulative effect of the proposed development, when combined with all other development,
will not increase the water surface elevation of the base flood more than 1 foot at any point within the
City of El Segundo
B. Within an adopted regulatory floodway, the City of El Segundo shall prohibit encroachments, including
fill, new construction, substantial improvements, and other development, unless certification by a
registered civil engineer is provided demonstrating that the proposed encroachment shall not result in
any increase in flood levels during the occurrence of the base flood discharge.
C. If Sections 5.6.A & B are satisfied, all new construction, substantial improvement, and other
proposed new development shall comply with all other applicable flood hazard reduction provisions of
Section 5
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5.7 COASTAL HIGH HAZARD AREAS
Within coastal high hazard areas, Zones V, V1-30, and VE, as established under Section 3.2, the following
standards shall apply:
A. All new residential and non-residential construction, including substantial improvement/damage, shall
be elevated on adequately anchored pilings or columns and securely anchored to such pilings or
columns so that the bottom of the lowest horizontal structural member of the lowest floor (excluding
the pilings or columns) is elevated to or above the base flood level. The pile or column foundation and
structure attached thereto is anchored to resist flotation, collapse, and lateral movement due to the
effects of wind and water loads acting simultaneously on all building components Water loading
values used shall be those associated with the base flood. Wind loading values used shall be those
required by applicable state or local building standards
B. All new construction and other development shall be located on the landward side of the reach of
mean high tide.
C. All new construction and substantial improvement shall have the space below the lowest floor free of
obstructions or constructed with breakaway walls as defined in Section 2 of this ordinance. Such
enclosed space shall not be used for human habitation and will be usable solely for parking of
vehicles, building access or storage.
D. Fill shall not be used for structural support of buildings
E. Man-made alteration of sand dunes which would increase potential flood damage is prohibited
F. The Floodplain Administrator shall obtain and maintain the following records:
1. Certification by a registered engineer or architect that a proposed structure complies with Sectior
5.7.A: and
2 The elevation (in relation to mean sea level) of the bottom of the lowest horizontal structural
member of the lowest floor (excluding pilings or columns) of all new and substantially improved
structures, and whether such structures contain a basement
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SECTION 6.0
VARIANCE PROCEDURE
6.1 NATURE OF VARIANCES.
The issuance of a variance is for floodplain management purposes only. Insurance premium rates are
determined by statute according to actuarial risk and will not be modified by the granting of a variance.
The variance criteria set forth in this section of the ordinance are based on the general principle of zoning law
that variances pertain to a piece of property and are not personal in nature. A variance may be granted for a
parcel of property with physical characteristics so unusual that complying with the requirements of this
ordinance would create an exceptional hardship to the applicant or the surrounding property owners. The
characteristics must be unique to the property and not be shared by adjacent parcels. The unique
characteristic must pertain to the land itself, not to the structure, its inhabitants, or the property owners.
It is the duty of the City Council of the City of El Segundo to help protect its citizens from flooding. This need is
so compelling and the implications of the cost of insuring a structure built below flood level are so serious that
variances from the flood elevation or from other requirements in the flood ordinance are quite rare. The long
term goal of preventing and reducing flood loss and damage can only be met if variances are strictly limited.
Therefore, the variance guidelines provided in this ordinance are more detailed and contain multiple provisions
that must be met before a variance can be properly granted. The criteria are designed to screen out those
situations in which alternatives other than a variance are more appropriate.
6.2 CONDITIONS FOR VARIANCES.
A. Generally, variances may be issued for new construction, substantial improvement, and other
proposed new development to be erected on a lot of one-half acre or less in size contiguous to and
surrounded by lots with existing structures constructed below the base flood level, providing that the
procedures of Sections 4 and 5 of this ordinance have been fully considered. As the lot size
increases beyond one-half acre, the technical justification required for issuing the variance increases.
B. Variances may be issued for the repair or rehabilitation of "historic structures" (as defined in
Section 2 of this ordinance) upon a determination that the proposed repair or rehabilitation will not
preclude the structure's continued designation as an historic structure and the variance is the
minimum necessary to preserve the historic character and design of the structure.
C. Variances shall not be issued within any mapped regulatory floodway if any increase in flood levels
during the base flood discharge would result.
D. Variances shall only be issued upon a determination that the variance is the "minimum necessary"
considering the flood hazard, to afford relief "Minimum necessary" means to afford relief with a
minimum of deviation from the requirements of this ordinance For example, in the case of variances
to an elevation requirement, this means the City Council need not grant permission for the applicant to
build at grade, or even to whatever elevation the applicant proposes, but only to that elevation which
the City Council believes will both provide relief and preserve the integrity of the local ordinance.
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E. Any applicant to whom a variance is granted shall be given written notice over the signature of a
community official that:
1. The issuance of a variance to construct a structure below the base flood level will result in
increased premium rates for flood insurance up to amounts as high as $25 for $100 of insurance
coverage, and
2. Such construction below the base flood level increases risks to life and property. It is
recommended that a copy of the notice shall be recorded by the Floodplain Administrator in the
Office of the Los Angeles County Recorder and shall be recorded in a manner so that it appears
in the chain of title of the affected parcel of land
F. The Floodplain Administrator will maintain a record of all variance actions, including justification for
their issuance, and report such variances issued in its biennial report submitted to the Federal
Emergency Management Agency.
6.3 APPEAL BOARD.
A. In passing upon requests for variances, the City Council shall consider all technical evaluations, all
relevant factors, standards specified in other sections of this ordinance, and the:
1. Danger that materials may be swept onto other lands to the injury of others;
2 Danger of life and property due to flooding or erosion damage;
3 Susceptibility of the proposed facility and its contents to flood damage and the effect of such
damage on the existing individual owner and future owners of the property;
4 Importance of the services provided by the proposed facility to the community,
5 Necessity to the facility of a waterfront location, where applicable;
6 Availability of alternative locations for the proposed use which are not subject to flooding or
erosion damage;
7 Compatibility of the proposed use with existing and anticipated development;
8. Relationship of the proposed use to the comprehensive plan and floodplain management program
for that area;
9. Safety of access to the property in time of flood for ordinary and emergency vehicles;
10 Expected heights, velocity, duration, rate of rise, and sediment transport of the flood waters
expected at the site; and
11 Costs of providing governmental services during and after flood conditions, including maintenance
and repair of public utilities and facilities such as sewer, gas, electrical, and water system, and
streets and bridges
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B. Variances shall only be issued upon a
1. Showing of good and sufficient cause,
2 Determination that failure to grant the variance would result in exceptional "hardship" to the
applicant; and
3. Determination that the granting of a variance will not result in increased flood heights, additional
threats to public safety, or extraordinary public expense, create a nuisance (see "Public safety
and nuisance"), cause "fraud and victimization" of the public, or conflict with existing local laws
or ordinances
C. Variances may be issued for new construction, substantial improvement, and other proposed new
development necessary for the conduct of a functionally dependent use provided that the provisions of
Sections 6.3.A through 6.3.13 are satisfied and that the structure or other development is protected
by methods that minimize flood damages during the base flood and does not result in additional
threats to public safety and does not create a public nuisance.
D, Upon consideration of the factors of Section 6.2.A and the purposes of this ordinance, the City
Council may attach such conditions to the granting of variances as it deems necessary to further the
purposes of this ordinance
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