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2022-10-18 CC Agenda PacketAGENDA EL SEGUNDO CITY COUNCIL REGULAR MEETING TUESDAY, OCTOBER 18, 2022 4:00 PM CLOSED SESSION 6:00 PM OPEN SESSION CITY COUNCIL CHAMBER 350 MAIN STREET, EL SEGUNDO, CA 90245 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 Executive Team Darrell George, City Manager Barbara Voss, Deputy City Manager Jaime Bermudez, Police Chief Michael Allen, Community Development Dir. Jose Calderon, IT Director Aly Mancini, Recreation, Parks & Library Dir. Mark Hensley, City Attorney Joe Lillio, Chief Financial Officer Deena Lee, Fire Chief Rebecca Redyk, HR Director Elias Sassoon, Public Works Dir. MISSION STATEMENT: "Provide a great place to live, work, and visit." VISION STATEMENT: "Be a global innovation leader where big ideas take off while maintaining our unique small-town character." 1 Page 1 of 127 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.elsegundo.org 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. Those wishing to address the City Council are requested to complete and submit to the City Clerk a "Speaker Card" located at the Council Chamber entrance. You are not required to provide personal information in order to speak, except to the extent necessary for the City Clerk to call upon you, properly record your name in meeting minutes and to provide contact information for later staff follow-up, if appropriate. 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. 2 Page 2 of 127 4:00 PM CLOSED SESSION — CALL TO ORDER / 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. SPECIAL ORDERS OF BUSINESS RECESS INTO CLOSED SESSION: City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et seq.) 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. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (GOV'T CODE §54956.9(D)(1): -1- MATTER(S) Breck Slover (Retired Fire Fighter) v. City of El Segundo, Workers Compensation Appeals Board Case No. ADJ 12808178 CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code §54956.9(c): -1- matter. PUBLIC EMPLOYMENT (GOV'T CODE § 54957) -2- MATTER(S) City Manager and City Attorney Performance Evaluations CONFERENCE WITH CITY'S LABOR NEGOTIATOR (GOV'T CODE §54957.6): -4- MATTER(S) Employee Organizations: Fire Fighters Association (FFA), Police Officers Association (POA), and Supervisory Professional Employee Association (SPEA), and Professional Support Services Employee Association (PSSEA). Representative: Irma Moisa Rodriquez, City Manager, Darrell George, and Human Resources Director, Rebecca Redyk. 6:00 PM — CONVENE OPEN SESSION — CALL TO ORDER / ROLL CALL INVOCATION — Pastor Rob McKenna, The Bridge PLEDGE OF ALLEGIANCE — Council Member Pirsztuk 3 Page 3 of 127 SPECIAL PRESENTATIONS 1. Recognition of Kite, a Gilead Company on the Five -Year Anniversary of FDA Approval to Produce Cell Therapies to Cure Cancer 2. Recognition of Nicole Pesqueira for Graduating from All American Leadership Academy 3. Introduction of Jose Calderon, New Information Technology Services Director PUBLIC COMMUNICATIONS — (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 the 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 Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications) Hyperion Water Reclamation Plant Update Richmond Street Outdoor Dining A. PROCEDURAL MOTIONS Read All Ordinances and Resolutions on the Agenda by Title Only Recommendation - Approval B. CONSENT 4. City Council Meeting Minutes Recommendation - 1. Approve regular City Council meeting minutes for October 4, 2022. 2. Alternatively, discuss and take other action related to this item. 5. Warrant Demand Register for September 19, 2022 through October 2, 2022 Recommendation - Ratify payroll and employee benefit checks; checks released early due to contracts or agreements; emergency disbursements and/or adjustments; and, wire transfers. 2. Approve Warrant Demand Register numbers 613 and 7A: warrant numbers 3042548 through 3042705, and 9002664. 0 Page 4 of 127 3. Alternatively, discuss and take other action related to this item. 6. Amendment to Agreement with Dennis Grubb and Associates, LLC Recommendation - Approve an amendment to agreement No. 6379 with Dennis Grubb and Associates, LLC to increase the total contract amount from $50,000 to $150,000 for fire prevention plan check services. 2. Authorize the City Manager to execute the amended agreement (No. 6379B). 3. Alternatively, discuss and take other action related to this item. 7. Notice of Completion of Sidewalk Construction Project for 400 West Mariposa Avenue and 300 West Pine Avenue Recommendation - Accept the construction of Sidewalk Project at 400 W. Mariposa Avenue and 300 W. Pine Avenue, Project No. PW 21-07, by Gentry General Engineering as complete; and 2. Authorize the City Clerk to file a Notice of Completion with the County Recorder's Office. 3. Alternatively, discuss and take other action related to this item. 8. Second Reading of Ordinance Adding Chapter 13-33 to the El Segundo Municipal Code to Establish a Regulatory Program Allowing for Reasonable City Cost Recovery for Excessive False Alarms Responses Recommendation - 1. Waive the second reading and adopt the Ordinance adding Chapter 13- 33 to the El Segundo Municipal Code. 2. Alternatively, discuss and take other action related to this item. 9. Resolution Allowing Continued Teleconferenced Public Meetings Recommendation - 1. Approve the proposed resolution to continue the City's utilization of relaxed teleconferencing requirements under the Brown Act. 2. Alternatively, discuss and take other action related to this item. 5 Page 5 of 127 C. PUBLIC HEARINGS 10. Public Hearing on the Bargaining Impasse Between the City of El Segundo and the El Segundo Firefighters' Association Regarding the Potential Impacts of the Brownout (Temporary Suspension) of Engine Number 32 Recommendation - Conduct a public hearing on the bargaining impasse between the City of El Segundo and the El Segundo Firefighters' Association over the potential impacts of the Brownout of Engine Number 32. 2. Adopt a resolution Authorizing the Implementation of the Terms of the City's April 25, 2022, Last, Best, and Final Offer to the El Segundo Firefighters' Association Pursuant to Government Code § 3505 which will brownout Engine Number 32 for a six-month period pursuant to certain terms and conditions. 3. Alternatively, discuss and take other action related to this item. 11. Resolution Amending a Regulatory Fee to Recover City Costs for Excessive False Alarm Responses Recommendation - 1. Conduct a public hearing. 2. Adopt a resolution amending a regulatory fee to recover city costs incurred for certain regulatory El Segundo Fire Department ("ESFD") responses. 3. Alternatively, discuss and take other action related to this item. D. STAFF PRESENTATIONS 12. Urho Saari Swim Stadium ("The Plunge") Project Recommendation - 1. Authorize modifications to the conceptual design of "The Plunge" project which was previously presented to the City Council in June 1, 2021. 2. Alternatively, discuss and take other action related to this item. Page 6 of 127 13. FY 2021-2022 Year -End Financial Re Recommendation - 1. Receive and file the unaudited FY 2021-2022 Year -End Financial Report. 2. Alternatively, discuss and take other action related to this item. 14. Extension of License Agreements with El Segundo Youth Sports Oraanizations Recommendation - 1. Authorize the City Manager to extend the License Agreements with each El Segundo Youth Sports Organization identified in the Youth Sports Council Athletic Field/ Facility Use and Allocation Policy for the remainder of FY 22-23. 2. Alternatively, discuss and take other action related to this item. 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 TEM PIMENTEL MAYOR BOYLES I. REPORTS - CITY ATTORNEY J. REPORTS/FOLLOW-UP - CITY MANAGER CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et seq.) 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. 7 Page 7 of 127 REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) MEMORIALS ADJOURNMENT POSTED: DATE: October 13, 2022 TIME: 12:00 PM BY: Tracy Weaver, City Clerk Page 8 of 127 ommellbatt"On City of (91 *egunbo, California WHEREAS, Kite, a Gilead Company is the global leader in cell therapy and has had a presence in El Segundo since early 2016, recognizing the city's proximity to LAX and freeway access as essential for facilitating the company's state-of-the-art cell therapy manufacturing process; and WHEREAS, Kite, a Gilead Company has continued to expand its El Segundo footprint from the original building at 2388 Utah Avenue to leasing supplemental space as part of 2355 Utah, and then to fully occupy both buildings, and now having constructed an addition to connect both buildings and to build a new warehouse compromising a total building footprint of 203,000 square feet; and WHEREAS, Kite, a Gilead Company employs more than 800 employees in its El Segundo facility, including functions such as Manufacturing, Quality, Process Development, Materials Management/Supply Chain, Facilities and Engineering, Operations, Finance, Human Resources, and IT; and WHEREAS, Kite, a Gilead Company produces two innovative cell therapies manufactured at the El Segundo facility for both clinical and commercial purpose, and is believed to have pioneered the position of "Cell Therapy Specialist", revolutionizing the biotech industry; and WHEREAS, Kite, a Gilead Company is licensed to manufacture cell therapies for patients in more than 20 countries around, and already has produced individualized treatments for approximately 9,000 patients; and WHEREAS, Kite, a Gilead Company received its commercial manufacturing license from the FDA five years ago today. NOW, THEREFORE, on this 18th day of October, 2022, the Mayor and Members of the City Council of the City of El Segundo, California, hereby celebrate the five-year anniversary of Kite's El Segundo facility being approved by the FDA, and commend Kite, a Gilead Company for producing innovative cell therapies for patients battling cancer, and — with sincere appreciation for the company's dedication to research and development of new biopharmaceutical treatment and wishes further success with the company's continued focus on the cure. } _ 4ayor Drew Boyles Mayor Pro 7em CFcris 1Timentef CouncdWember Carof Pirsztuk Counci(,TemberScot %icof Councif9lllemberLance Gir"--Page 9 of 127 MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL TUESDAY, OCTOBER 4, 2022 CLOSED SESSION — Mayor Boyles called to order at 4:03 PM. ROLL CALL Mayor Boyles - Present Mayor Pro Tem Pimentel - Present Council Member Pirsztuk - Present Council Member Nicol - Present Council Member Giroux - Present PUBLIC COMMUNICATION — (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. CONFERENCE WITH CITY'S LABOR NEGOTIATOR (GOV'T CODE §54957.6): -4- MATTER(S) Employee Organizations: Fire Fighters' Association (FFA), Police Officers' Association (POA), Supervisory Professional Employee Association (SPEA), and Professional Support Services Employee Association (PSSEA). Agency Designated Representative: Irma Moisa Rodriquez, City Manager, Darrell George, and Human Resources Director, Rebecca Redyk PUBLIC EMPLOYMENT (GOV'T CODE §54957) -2- MATTER(S) City Manager and City Attorney Performance Evaluations Recessed at 5:55 PM OPEN SESSION — Mayor Boyles called to order at 6:00 PM ROLL CALL Mayor Boyles - Present Mayor Pro Tern Pimentel - Present Council Member Pirsztuk - Present Council Member Nicol - Present Council Member Giroux - Present EL SEGUNDO CITY COUNCIL MEETING MINUTES OCTOBER 4, 2022 PAGE 1 Page 10 of 127 INVOCATION - Pastor Rob McKenna, The Bridge PLEDGE OF ALLEGIANCE - Mayor Pro Tern Pimentel SPECIAL PRESENTATIONS: 1. Item deferred to a later date - Council recognized Sgt. McEnroe for graduating from the Sherman Block Supervision Leadership Institute. 2. Proclamation read by Council Member Nicol proclaiming October 2022 as National Bullying Prevention Month. Proclamation was presented to Christibelle Villena of the DEI Committee. 3. Proclamation read by Council Member Pirsztuk, proclaiming October 2022 as Breast Cancer Awareness Month. Proclamation was read in honor of Jo McFadden. 4. West Basin Drought Update presented by Scott Houston, West Basin Director, Division 4 Representative. General Manager, Greg Reeve??? Double check PUBLIC COMMUNICATIONS - (Related to City Business Only - 5-minute limit per person, 30-minute limit total) Dave Holop, resident, commented on the Center Street incident a few months back and would like the internal report made available to the public. John Pickhaver, resident, commented on the proclamations read earlier in the evening. CyIrd05F-1101/_Tel21:»07111111061►ITQIJrole] ►VAI►TA121►1161i 5. City Manager, Darrell George gave an update regarding the Hyperion Water Reclamation Plant. Mr. George commented on the findings from the Center Street incident, he will review with the Chief regarding making the internal report available to the public. A. Read all Ordinances and Resolutions on the Agenda by Title Only. MOTION by Council Member Giroux, SECONDED by Council Member Nicol to read all ordinances and resolutions on the agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 B. CONSENT: 6. Approve Special Joint meeting minutes of the City Council and Recreation and Parks Commission on April 31, 2022, City Council Special meeting minutes of September 8, 2022 and September 15, 2022, and Regular City Council meeting minutes of September 20, 2022. (Fiscal Impact: None) EL SEGUNDO CITY COUNCIL MEETING MINUTES OCTOBER 4, 2022 PAGE 2 Page 11 of 127 7. Approve warrants demand register for August 29, 2022 through September 18, 2022, number 5A, 5B and 6A, warrant numbers 3042240 through 3042547, and 9002632 through 9002663. Ratify Payroll and employee benefit Checks; Checks released early due to contracts or agreement; Emergency disbursements and/or adjustments; and, Wire transfers. (Fiscal Impact: $3,297,576.14 ($2,046,644.75 in check warrants and $1,250,931.39 in wire warrants)) MOTION by Council Member Nicol, SECONDED by Council Member Pirsztuk approving Consent Agenda items 6 and 7. MOTION PASSED BY UNANIMOUS VOTE. 5/0 C. PUBLIC HEARINGS: None D. STAFF PRESENTATIONS: 8. Grant Award from Chevron U.S.A., Inc. in the Amount of $75,000 to Support Economic Development within the City of El Segundo (Fiscal Impact: $75,000 Revenue for the Economic Development Grant Account 702-221-2401-1281) Barbara Voss, Deputy City Manager reported on the item. Fredrick Walker, Director, El Segundo Refinery and Lily Craig, External Affairs Manager Chevron U.S.A., Inc. presented the Council with a $75,000 check. Council Discussion MOTION by Council Member Nicol, SECONDED by Council Member Pirsztuk accepting the grant from Chevron U.S.A., Inc., and appropriate grant funding to the Economic Development Grant Account. MOTION PASSED BY UNANIMOUS VOTE. 5/0 9. Residential Sound Installation (RSI) Program Update (Fiscal Impact: None) Michael Allen, Community Development Director introduced the item. Samantha Bricker, Los Angeles World Airports, Chief Sustainability and Revenue Management Officer gave a presentation. Council Discussion Council consensus to receive and file the report. 10. Ordinance Adding Chapter 13-33 to the El Segundo Municipal Code to Enable Reasonable City Cost Recovery for Excessive False Fire Alarm Responses EL SEGUNDO CITY COUNCIL MEETING MINUTES OCTOBER 4, 2022 PAGE 3 Page 12 of 127 (Fiscal Impact: The proposed Ordinance would enable the City's cost recovery for excessive fire false alarm calls. The El Segundo Fire Department ("ESFD") will present a fee resolution on October 18, 2022 (or as soon thereafter as may be considered) to the City Council to modify an existing false alarm fee that ESFD included with the recently adopted Master Fee Schedule. The adopted fee allowed the City to collect ESFD costs after three (3) false alarms, but the proposed amendment will conform with the Ordinance to allow City cost recovery after the first two false alarms. City staff anticipates the Ordinance will cause most alarm system owners to be more responsible in maintaining their systems in proper working order, requiring a lower number of responses. Pursuant to California Constitution article XI I IC, § 1(e)(3), the fees authorized through the Ordinance do not constitute a "tax" as they concern City regulation enforcement and investigation performance associated with a regulatory program.) Deena Lee, Fire Chief reported and answered questions on the item. Council Discussion Mark Hensley, City Attorney read by title only; ORDINANCE NO. 1640 AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE TITLE 13 TO ADD A NEW CHAPTER 22 TO ENABLE CITY COST RECOVERY FOR EXCESSIVE FALSE FIRE ALARMS. Council Member Nicol introduced the Ordinance. Second reading and possible adoption is scheduled for the October 18, 2022 regular scheduled City Council meeting. 11. Establish the Fire Prevention Specialist 1-11 Classifications and Adopt Associated Specification, Examination Plans, and Salary Ranges (Fiscal Impact: Adopted FY 2022-23 budget) Rebecca Rydek, Human Resources Director reported on the item. Council Discussion MOTION by Council Member Giroux, SECONDED by Council Member Nicol approving establishment of Fire Prevention Specialist 1-II classifications and adopting the classification specification and examination plans for the Fire Prevention Specialist 1-11 positions. MOTION PASSED BY UNANIMOUS VOTE. 5/0 Mark Hensley, City Attorney read by title only; RESOLUTION NO. 5367 A RESOLUTION ESTABLISHING BASIC MONTHLY SALARY RANGE FOR FULL- TIME JOB CLASSIFICATIONS. EL SEGUNDO CITY COUNCIL MEETING MINUTES OCTOBER 4, 2022 PAGE 4 Page 13 of 127 MOTION by Council Member Pirsztuk, SECONDED by Council Member Giroux adopting Resolution No. 5367. MOTION PASSED BY UNANIMOUS VOTE. 5/0 12. Convert the Information Systems Manager Classification from Civil Service to At -Will Status and Adopt Revised Classification Specification, Examination Plan and Salary Range (Fiscal Impact: Adopted FY 2022-23 budget) Rebecca Rydek, Human Resources Director reported on the item. Council Discussion MOTION by Council Member Giroux, SECONDED by Council Member Nicol approving the conversion of the Information Systems Manager classification from Civil Service to at -will status and adopt revised classification specification and examination plan for the Information Systems Manager position. MOTION PASSED BY UNANIMOUS VOTE. 5/0 Mark Hensley, City Attorney read by title only; IC]2 1100]1LOA1191010[ON *1101:3 A RESOLUTION MODIFYING BASIC MONTHLY SALARY RANGE FOR FULL TIME JOB CLASSIFICATIONS. MOTION by Council Member Nicol, SECONDED by Council Member Giroux adopting Resolution No. 5368. MOTION PASSED BY UNANIMOUS VOTE. 5/0 E. COMMITTEES, COMISSIONS AND BOARDS PRESENTATIONS: None F. REPORTS — CITY CLERK — Announced the upcoming City Council Candidate Forums; October 13t" hosted by ESMoA at 6.30 PM and October 19t" hosted by the El Segundo Women's Club at 6:30 PM. G. REPORTS — CITY TREASURER — Not present V 21affl ir•"W4Z011J►Is] 10►TA121►TA1:321:001 Council Member Giroux — No report Council Member Nicol — Recognized Beto Moreno for his dedication and outstanding work on the Main Street Fair. Council Member Pirsztuk — Stated ESUSD Homecoming is this Friday, October 7t", with the parade beginning at 5:00 PM down Main Street. Mayor Pro Tern Pimentel — No report EL SEGUNDO CITY COUNCIL MEETING MINUTES OCTOBER 4, 2022 PAGE 5 Page 14 of 127 Mayor Boyles — Attended Convening of the Mayor's with Supervisor Holly Mitchell and thanked all involved in the cleaning up of Imperial Highway median. Wished everyone a Happy Yom Kippur. REPORTS — CITY ATTORNEY — Stated September 30, 2022 was the last the Governor could sign bills this legislative period. Several bills signed were regarding housing, Mark and his team will put together an overview of the bills and present to Council. J. REPORTS/FOLLOW-UP — CITY MANAGER — Mentioned the Eddy Awards will be held on November 9, 2022 at SoFi Stadium and invited Council to attend if they wish. The City of El Segundo has been nominated as a Business Friendly City. MEMORIALS — None Adjourned at 7.58 PM Council moved back into Closed Session at 8.00 PM Closed Session adjourned at 8.15 PM Tracy Weaver, City Clerk EL SEGUNDO CITY COUNCIL MEETING MINUTES OCTOBER 4, 2022 PAGE 6 Page 15 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Consent Item Number: B.5 TITLE: Warrant Demand Register for September 19, 2022 through October 2, 2022 RECOMMENDATION: Ratify payroll and employee benefit checks; checks released early due to contracts or agreements; emergency disbursements and/or adjustments; and, wire transfers. 2. Approve Warrant Demand Register numbers 6B and 7A: warrant numbers 3042548 through 3042705, and 9002664. 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The warrants presented were drawn in payment of demands included within the FY 2022-2023 Adopted Budget. The total of $1,738,849.01 ($963,029.67 in check warrants and $775,819.34 in wire warrants) are for demands drawn on the FY 2022-2023 Budget. BACKGROUND: California Government Code Section 37208 provides General Law cities flexibility in how budgeted warrants, demands, and payroll are audited and ratified by their legislative body. Pursuant to Section 37208 of the California Government Code, warrants drawn in payments of demands are certified by the City's Chief Financial Officer and City Manager as conforming to the authorized expenditures set forth in the City Council adopted budget need not be audited by the City Council prior to payment, but may be presented to the City Council at the first meeting after delivery. In government finance, a warrant is a written order to pay that instructs a federal, state, county, or city government treasurer to pay the warrant holder on demand or after a specific date. Such warrants look like checks and clear through the banking system like Page 16 of 127 Warrant Demand Register October 18, 2022 Page 2 of 2 checks. Warrants are issued for payroll to individual employees, accounts payable to vendors, to local governments, and to companies or individual taxpayers receiving a refund. Q 6*9111*4 :s] ki I The attached Warrants Listing delineates the warrants that have been paid for the period identified above. The Chief Financial Officer certifies that the listed warrants were drawn in payment of demands conforming to the adopted budget and that these demands are being presented to the City Council at its first meeting after the delivery of the warrants. CITY STRATEGIC PLAN COMPLIANCE: Goal 5: Champion Economic Development and Fiscal Sustainability Objective 5B: El Segundo approaches its work in a financially strategic and responsible way. PREPARED BY: Liz Lydic, Management Analyst REVIEWED BY: Joseph Lillio, Chief Financial Officer APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Register 6b summary 2. Register 7a summary Page 17 of 127 CITY OF £L SEGUNDO WARRANTS TOTALS BY FUND 3042548 3042635 DATE OF APPROVAL. 9002664 - - oal GENERAL FUND 386,725.73 003 EXPENDABLE TRUST FUND - OTHi=R 5,988.09 1a4 TRAFFIC SAFETY FUND - 706 STATE GAS TAX FUND 1.35 fall ASSOCIATED RECREATION ACT;vrriES FUND - 109 ASSET FORFEITURE FUND - 110 MEAURE'R' - ill COMM. DEVEL. BLOCK GRANT 27,645,00 112 PROP "A' TRANSPORTATION 3,667.04 714 PROP-C"TRANSPORTATION - I15 AIR QUALITY INVESTMENT PROGRAM - Ila HOME SOUND INSTALLATION FUND - 1f7 HYPERION MITIGATION FUND - 118 TDA ARTICLE 3- SB 821 BIKEWAY FUND - 119 WA GRANT - 120 C.O.P.S. FUND - 121 FEMA 122 LA.W.A, FUND 123 PSAF PROPERTY TAX Pu041C SAFETY - 124 FEDERALGRANTS - 125 STATE GRANT - 125 AIP CUPA PROGRAM OVERSIGHT SURCHARGE - 127 MEAURE"M" - 129 SA-1 1,092.00 12S CERTW ED ACCESS SPECIALIST PROGRAM - 130 AFFORDABLE HOUSING - 131 COUNTY STORM WATER PROGRAM - 202 ASSESSMENT DISTRICT#73 - 307 CAPITAL IMPROVEMENT FUND 55,440.50 302 MFRASTRuC7URE REPLACEMENT FUND - 405 FACILITIES MAINTENANCE - 501 WATER UTILITY FUND 46,648.61 502 WASTEWATER FUND 11.015.67 S03 GOLF COURSE FUND 80,593 26 505 SOLID WASTE FUND - act EQUIPMENT REPLACEMENT - 602 LIABILITY INSURANCE 8,D62.85 503 WORKERS COMP. RESERVEITNSURANCE 95.85 701 RETIRED EMP. INSURANCE - 702 EXPENDABLE TRUST FUND -DEVELOPER FEES - 704 CULTURAL DEVELOPMENT 300.00 708 OUTSIDE SERVICES TRUST 875.00 TOTAL WARRANTS 3 I!IW948.86 STATE OF CALIFORNIA COUNTY OF LOS ANGELES Inforrnation on actual 0"Odaures is available in the Divectur of Finance's office in the City of El Segundo. I certify as to the accuracy of the Demands and the availability of fund for payment thereof. Fur Approval: Regular checks held far City council authorization to release. CODES: R = Computer generated checks for all non-emergencylurgancy payments fof materials, supplies and services in suppen of City Operations For Ratification- A = Payroll and Employee Benefit checks AP - U = Compuferganerated Eal1y Rolease disbursements and/or adjustments approved by the City Manager. Such as: payments for u11Iay servicas, petty cash and employee Iravei fi"nse reimbursements, various refunds, contract employee services consistent with current contractual agreements, instances where prompt payment discounts can be oblamed or late payment penailies AS OF 10104122 B961STER 0 0 VOID CHECKS DUE TO ALIGNMENT: NIA VOID CHECKS DUE TO INCORRECT CHECK DATE: VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR: NOTES can be avoided orwhen a situation arises that the City Manager approves. H = Handwritten Early Rele sa dishu em/ayn�dlor adjustments approved by the City Manager. CHIEF FINANCIAL OFFICER Kyn/ �„�_ An CITY MANAGER DATE: YV'^yF T_S�eJ DATE: Page 18 of 127 CITY OF EL SEGUNDO WARRANTS TOTALS BY DEPARTMENT AS OF 10/04/22 REGISTER # 6b DEPT# NAME TOTAL GENERAL FUND DEPARTMENTAL EXPENDITURES GENERAL GOVERNMENT 1101 City Council 2,879.25 1201 City Treasurer 58.02 1300 City Clerk 1,325.51 2101 City Manager 7,056.81 2102 Communications 53,66 2103 El Segundo Media 4,193.82 2201 City Attorney 17,364.35 2401 Economic Development 2,544,66 2402 Planning 2,106.00 2500 Administrative Services 46,843,08 2601 Government Buildings 11,295.67 2700 Community Outreach/Planning 4,262.80 2900 Nondepartmental 2,478.13 6100 Library 2,510.81 104,972, 57 PUBLIC SAFETY 3100 Police 12,742.19 3200 Fire 24,336.56 2403 Building Safety 1,407,11 2404 Ping/Bldg Sfty Administration 723.65 39, 209.51 PUBLIC WORKS 4101 Engineering 5,350.00 4200 Streets/Park Maintenance 23,192,20 4300 Wastewater 4601 Equipment Maintenance 1,090.8$ 4801 Administration 91.35 29,724.23 COMMUNITY SERVICES 5100,5200 Recreation & Parks 189,192,10 5400 Centennial 189,192.10 EXPENDITURES CAPITAL IMPROVEMENT 55,440.50 ALL OTHER ACCOUNTS 212,409.95 v TOTAL WARRANTS 630,948.86 cn cD 0 N v CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 09/19/22 THROUGH 09125122 Date payee_ 9/2/2022 Employment Development 6,960.50 9/19/2022 IRS 265,812.35 9/1912022 Employment Development 4,8%38 9/19/20222 Employment Development 61,818.24 9/21/2022 Employment Development 2,709.50 9/21/2022 Cal Pers 61,665.99 9/21/2022 Cal Pers 52,204.07 9/21/2022 Cal Pers 50,580.50 9/21/2022 Cal Pers 37,220.31 9/21/2022 Cal Pers 28,126.53 9/21/2022 Cal Pers 14,498.92 9/21/2022 Cal Pers 7,395.24 9/22/2022 Unum 211.30 09/12/22-09/18/22 Workers Comp Activity 66,130.17 09/12/22-09/18/22 Liability Trust - Claims 1,350.00 09/12/22-09/18/22 Retiree Health Insurance - 661, 543.00 DATE OF RATIFICATION: 09/23/22 TOTAL PAYMENTS BY WIRE: Descrintion State SDI payment Federal 941 Deposit State SDI payment State PIT Withholding State SDI payment EFT Retirement Safety Police Classic - 1 st Tier 28 EFT Retirement Safety Fire- Classic 30168 EFT Retirement Misc - PEPRA New 26013 EFT Retirement Misc - Classic 27 EFT Retirement Safety-Police-PEPRA New 25021 EFT Retirement Safety-Fire-PEPRA New 25020 EFT Retirement Sfty Police Classic-2nd Tier 30169 Long Term Care Premium SCRMA checks issued Claim checks issued/(voided) Health Reimbursment checks issued Ce ffied as to the accuracy of the wire transfers by: ®9 2 puty City Treasurer II Date cl-Chief Financial fficer Date Q� - 2L—� ; ` ,71 _ 2 Z- Ciry l4anager Date Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo. 661,543.00 P:1City TreasurerMire TransferslWire Transfers 07-01-22 to 6-30-23 9/23/2022 1/1 Page 20 of 127 CITY OF EL SEGUNDO WARRANTS TOTALS BY FUND 3042636 - 3042705 DATE OF APPROVAL AS OFiwlmzz 001 GENERAL FUND 312,543.21 003 kXPENDADLE TRUST FUND- OTHER - 1Ca TRAFFIC SAFETY FUND - 106 STATE GAS TAX FUND - 108 ASSOCIATED RECREATION ACTIVITIES FUND - 109 ASSET FORFEITURE FUND - 11D MEAURE"R" - ill COMM, DEVEL BLOCK GRANT - 112 PROP "A" TRANSPORTATION 3,448.06 114 PROP'C'TRANSPORTAT*N - 115 AIR QUALITY INVESTMENT PROGRAM - $16 HOME SOUND INSTALLATION FUND - 117 HYPER€ON MITIGATION F€1NO 67.94 Ila TDA ARTICLE 3- SS 821 BIKEWAY FUND - 119 MTA GRANT 120 C.O.P.S. FUND - 121 FEMA 122 LA. W. A, FUND 123 PSAF PROPERTY TAX PUBLIC SAFETY - 124 FEDERAL GRANTS - 125 STATE GRANT - 125 ArP CUPA PROGRAM OVERSIGHT SURCHARGE 724,00 127 MEAURE"M" - 128 sh-1 129 CERTIFIED ACCESS SPECIALIST PROGRAM - 130 AFFORDABLE HOUSING - 131 COUNTY STORM WATER PROGRAM 3,11D.00 202 ASSESSMENT DISTRICT 473 301 CAPITAL IMPROVEMENT FUND 302 INFRASTRUCTURE REPLACEMENT FUND - 405 FACILITIES MAINTENANCE - 501 WATER UTILITY FUND 7,854.37 602 WASTEWATER FUND 4,007.04 5D3 GOLF COURSE FUND - SO5 SOLID WASTE FUND - 601 EGUMMENT REPLACEMENT 602 LIAWLITY INSURANCE - 603 WORKERS COMP_ RESERVERNSURANCE 26.19 701 RETIRED EMP. INSURANCE - 702 EXPENDABLE TRUST FUND -DEVELOPER FEES - 704 CULTURAL DEVELOPMENT 300.00 708 OUTSIDE SERVICES TRUST TOTAL WARRANTS _S__ 312,080.81 STATE OF CALIFORNIA COUNTY OF LOS ANGELES Information on actual expenditures is available in the Director of Finances office in the City of EI Segundo. I certify as to the accuracy of die Demands and the availability of fund for payment thereof, For Approval: Regular cheeks held for Cdy council authorization to release. CODES: VOID CHECKS DUE TO AL€GNMENT: NIA R= Computer generated checks for all non-emergencylurgency payments for materials, supplies and services in support of City Operations VO€D CHECKS DUE TO INCORRECT CHECK DATE: Far Ratification; A = Paymil and Employee Benefil checks VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR: AP - U = Computer generated Early Release disbursements andlOr adjuatmenls approved by the Cily Manager. Such as: payments for uIlldy services, pelly cash and employee travel expense NOTES reiml ursemenls, various refunds, contract employee services consistent with current wnlractual agreements, Instances where pmmpi paymeu€ discouala can be obtained or late payment penalties can be avoided ar whers a situation arises that the City Manager approves. H = Handwr8len Early Release disbur amen a for adjustments approved by Iho City Manage+. CHIEF FINANCIAL OFFICER CITY MANAGER ' DATE: DATE: Ifs /0 FtErAISTER A 7A Page 21 of 127 CITY OF EL SEGUNDO WARRANTS TOTALS BY DEPARTMENT AS OF 10/18/22 REGISTER # 7a DEPT# NAME TOTAL GENERAL FUND DEPARTMENTAL EXPENDITURES GENERAL GOVERNMENT 1101 City Council 104.25 1201 City Treasurer 24.87 1300 City Clerk 80.43 2101 City Manager 3,266.82 2102 Communications 22,915.15 2103 El Segundo Media 2201 City Attorney 2401 Economic Development 474.50 2402 Planning 2500 Administrative Services 44,185.14 2601 Government Buildings 47,262.23 2700 Community Outreach/Planning $46,0D 2900 Nondepartmental 29,875.95 6100 Library 11,887,09 160, 922.43 PUBLIC SAFETY 3100 Police 64,641.96 3200 Fire 5,323.24 2403 Building Safety 2404 Ping/Bldg Sfty Administration 247.68 70,212.88 PUBLIC WORKS 4101 Engineering 408.17 4200 Streets/Park Maintenance 7,522.81 4300 Wastewater 633.04 4601 Equipment Maintenance 5,780.72 4801 Administration 112.62 14,457.36 COMMUNITY SERVICES 5100,5200 Recreation & Parks 6,943.14 5400 Centennial 6,943.14 EXPENDITURES CAPITAL IMPROVEMENT ALL OTHER ACCOUNTS TOTAL WARRANTS 79,545.00 332,080,81 Page 22 of 127 CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 09/26/22 THROUGH 10/02/22 Date Payee DescriWtian 9/30/2022 Mission Square 4,178.17 457 payment Vantagepoint 9/30/2022 Mission Square 1,038.46 401(a) payment Vantagepoint 9/30/2022 ExpertPay 2,720.76 EFT Child support payment 09/19/22-09/25/22 Workers Comp Activity 45,561.42 SCRMA checks issued 09/19/22-09/25/22 Liability Trust - Claims 60,777.53 Claim checks issuedt(voided) 09/19/22-09125/22 Retiree Health Insurance - Health Reimbursment checks issued 114,276.34 DATE OF RATIFICATION: 10/03/22 TOTAL PAYMENTS BY WIRE: 114,276.34 Certified as to the accuracy of the wire transfers by: eputy City Treasurer It Date Chief,ancialy Officer Date City Manager Date Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo. P:1City TreasurerlWire TransfersMire Transfers 07-01-22 to 6-30-23 10/3/2022 1/1 Page 23 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Consent Item Number: B.6 TITLE: Amendment to Agreement with Dennis Grubb and Associates, LLC RECOMMENDATION: Approve an amendment to agreement No. 6379 with Dennis Grubb and Associates, LLC to increase the total contract amount from $50,000 to $150,000 for fire prevention plan check services. 2. Authorize the City Manager to execute the amended agreement (No. 6379B). 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: Included in the Adopted FY 22-23 Budget Amount Budgeted: $150,000 Additional Appropriation: N/A Account Number(s):001-400-3204-6214 BACKGROUND: Dennis Grubb and Associates, LLC provide fire prevention plan check services and part time inspection services to the City of El Segundo. Plan check and inspection service fees paid to this vendor are fully recovered by the City via the plan check and inspection fees adopted in the FY 22-23 Master Fee Schedule (FR-001 through FR-003M, FR- 004A, FR-009, and FR-013). DISCUSSION: Based on excellent services delivered to the City of El Segundo, and the high demand for fire prevention plan check and inspection services in the City, staff recommends increasing the contract amount with Dennis Grubb and Associates, LLC by $100,000, Page 24 of 127 Dennis Grubb and Associates, LLC Contract Amendment October 18, 2022 Page 2 of 2 for a total not to exceed amount of $150,000 for FY 22-23. CITY STRATEGIC PLAN COMPLIANCE: Goal 1: Enhance Customer Service, Diversity, Equity, Inclusion and Communication Objective 1A: El Segundo provides unparalleled service to all customers. Goal 4: Develop and Maintain Quality Infrastructure and Technology Objective 4A: El Segundo's physical infrastructure supports an inviting and safe community. Objective 4B: El Segundo's technology supports effective, efficient, and proactive operations. Goal 5: Champion Economic Development and Fiscal Sustainability Objective 5A: El Segundo promotes economic growth and vitality for business and the community. Objective 5B: El Segundo approaches its work in a financially strategic and responsible way. PREPARED BY: Vanessa Arias, Management Analyst REVIEWED BY: Deena Lee, Fire Chief APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Dennis Grubb and Associates Amendment No. 6379B 2. Dennis Grubb and Associates Agreement No. 6379 Page 25 of 127 Agreement No. 6379B SECOND AMENDMENT TO AGREEMENT NO. 6379 BETWEEN THE CITY OF EL SEGUNDO AND DENNIS GRUBB AND ASSOCIATES, LLC THIS SECOND AMENDMENT ("Amendment") to Agreement No. 6379 ("Agreement") is made and entered into this 19th day of October, 2022, by and between CITY OF EL SEGUNDO, a general law city and municipal corporation existing under the laws of California ("CITY"), and DENNIS GRUBB AND ASSOCIATES, LLC ("CONSULTANT"). The parties agree as follows: 1. The parties intend for this Amendment to be retroactively effective to July 1, 2022. 2. Pursuant to Agreement Section 34, Section 1(C) is amended to increase the not -to -exceed compensation sum by $100,000 to establish a new total, not -to - exceed contract compensation sum of $150,000 for CONSULTANT's services. 3. Pursuant to Agreement Section 34, Section 2 is amended to augment the scope of services set forth in Section 2 and Agreement Exhibit "A" by the additional scope of work set forth in Attachment 1 to this Amendment, which is incorporated by reference. 4. Pursuant to Section 34 of the Agreement, Section 7 is amended to extend the Agreement's term described in Section 7 is through March 31, 2022. 5. This Amendment may be executed in any number of counterparts, and all such counterparts so executed constitute one Amendment binding on all the parties notwithstanding that all the parties are not signatories to the same counterpart. In accordance with Government Code §16.5, the parties agree that this Amendment will be considered signed when the signature of a party is delivered by electronic transmission. Such electronic signature will be treated in all respects as having the same effect as an original signature. 6. Except as modified by this Amendment, all other terms and conditions of the Agreement will remain the same. [SIGNATURES ON NEXT PAGE] Page 26 of 127 Agreement No. 6379B IN WITNESS WHEREOF the parties hereto have executed this Amendment the day and year first hereinabove written. CITY OF EL SEGUNDO Darrel George City Manager ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, CITY ATTORNEY Joaquin Vazquez, Deputy City Attorney 2 DENNIS GRUBB AND ASSOCIATES, LLC Title: Taxpayer ID No. 20-8680376 CA Entity # 200704410104 Page 27 of 127 Agreement No. 6379B ATTACHMENT 1 Page 28 of 127 Agreement No. 6379 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND DENNIS GRUBB AND ASSOCIATES, LLC This AGREEMENT is made and entered into this 24th day of May, 2022 (the "Effective Date"), by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city ("CITY") and DENNIS GRUBB AND ASSOCIATES, LLC") a California limited liability company ("CONSULTANT"). The parties agree as follows: 1. CONSIDERATION, A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, below; B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed fifty thousand dollars ($50,000) each fiscal year for CONSULTANT's services. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit "A," which is incorporated by reference. 2. SCOPE OF SERVICES. A. CONSULTANT will perform Fire plan check services listed in the attached Exhibit 'A" which is incorporated by reference. B. CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement. 3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CITY will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have fifteen (15) days after such notification to cure any shortcomings to CITY's satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT. City of El Segundo Professional Services Page 1 of 11 Page 29 of 127 Agreement No. 6379 4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit "A") the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that work during the preceding billing month and a cumulative cash flow curve showing projected and actual expenditures versus time to date. 5. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year. 6. FAMILIARITY WITH WORK. A. By executing this Agreement, CONSULTANT agrees that it has: Carefully investigated and considered the scope of services to be performed; ii. Carefully considered how the services should be performed; and Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. B. If services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT's own risk until written instructions are received from CITY. 7. TERM. The term of this Agreement will be from the Effective Date through June 30, 2022. Thereafter, this Agreement will renew annually for a one year period beginning July 1, 2022. Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A"; B. Termination as stated in Section 15. City of El Segundo Professional Services Page 2 of 11 Page 30 of 127 Agreement No. 6379 8. TIME FOR PERFORMANCE. A. CONSULTANT will not perform any work under this Agreement until: CONSULTANT furnishes proof of insurance as required under Section 22 of this Agreement; and CITY gives CONSULTANT a written notice to proceed. B. Should CONSULTANT begin work written authorization to proceed, CONSULTANT's own risk. on any phase in advance of receiving any such professional services are at 9. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond CONSULTANT's control, CITY may grant a time extension for the completion of the contracted services. If delay occurs, CONSULTANT must notify the Manager within forty- eight (48) hours, in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement's schedule. The Manager will extend the completion time, when appropriate, for the completion of the contracted services. 10. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits appear below. - A. Exhibit: A: Scope of Work and Fees 11. CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 12.TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number. 13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 14. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from City of El Segundo Professional Services Page 3 of 11 Page 31 of 127 Agreement No. 6379 CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 15. TERMINATION. A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. B. CONSULTANT may terminate this Agreement at any time with CITY's mutual consent. Notice will be in writing at least thirty (30) days before the effective termination date. C. Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT's own cost; CITY will not be obligated to compensate CONSULTANT for such work. D. Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY's option, become CITY's property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section 1(C). E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. 16.OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of CONSULTANT's completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY's own risk. 17. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by CONSULTANT to any City of El Segundo Professional Services Page 4 of 11 Page 32 of 127 Agreement No. 6379 other person or public CITY without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 18.INDEMNIFICATION. A. CONSULTANT agrees to the following: Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement, except for such loss or damage arising from CITY's sole negligence or willful misconduct. ii. Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise. B. For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers. C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. D. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 22, and any approval of said insurance by CITY, are not intended to and will not in any manner City of El Segundo Professional Services Page 5 of 11 Page 33 of 127 Agreement No. 6379 limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 19.ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. 20.INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which it is performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. 21.AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement. 22.INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Tie of Insurance Commercial general liability. - Professional Liability Business automobile liability Workers compensation Limits $2,000,000 $1,000,000 $1,000,000 Statutory requirement B. Commercial general liability insurance will meet or exceed the requirements City of El Segundo Professional Services Page 6 of 11 Page 34 of 127 Agreement No. 6379 of the most recent ISO-CGL Form. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or equivalent. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY. C. Professional liability coverage will be on an "occurrence basis" if such coverage is available, or on a "claims made" basis if not available. When coverage is provided on a "claims made basis," CONSULTANTwill continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. D. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto). E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." F. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to Section 155. 23. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation. 24.INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on the project, which will include a schedule update and a short narrative City of El Segundo Professional Services Page 7 of 11 Page 35 of 127 Agreement No. 6379 description of progress during the past month for each major task, a description of the work remaining and a description of the work to be done before the next schedule update. 25. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows: If to CONSULTANT: Dennis Grubb and Associates, LLC 6560 Van Buren Blvd, Ste B Riverside, CA 92503 Attention: Dennis Grubb Phone: 951-772-0007 Email: Dennis@DGAssociates.org If to CITY: City of El Segundo 350 Main Street El Segundo, CA Attention: Nicole Pesqueira, Fire Marshal Phone: 310-524-2239 Email: npesqueira@elsegundo.org Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 26. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's conflict of interest regulations. 27. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT's bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 28. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's obligations under this Agreement. 29.INTERPRETATION. This Agreement was drafted in and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. City of El Segundo Professional Services Page 8 of 11 Page 36 of 127 Agreement No. 6379 30. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement. 31. ENTIRE AGREEMENT. This Agreement, and its Exhibit(s), sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 32. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 33. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 34. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. 35. ACCEPTANCE OF ELECTRONIC SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic (pdf) or facsimile transmission. Such electronic or facsimile signature will be treated in all respects as having the same effect as an original signature. 36. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 37. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement. 38. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will immediately terminate without obligation of either party to the other. 39. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness City of El Segundo Professional Services Page 9 of 11 Page 37 of 127 Agreement No. 6379 and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. [Signatures on next page] City of El Segundo Professional Services Page 10 of 11 Page 38 of 127 Agreement No. 6379 IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year first hereinabove written. C F EL SEG DO - a Darrell George, Interim City Manager ATTE 'F0 Tracy We er, City Clerk APPROVED AS TO FORM: MARK q. HENSLEY, CITY ATTORNEY Joaqui Vazquez, DepuN pity Attorney City of El Segundo Professional Services Page 11 of 11 rCAWA Dennis Grubb and Associates, LLC President Taxpayer ID No. 20-8680376 CA Entity #: 200704410104 Page 39 of 127 Agreement No. 6379 *lot Dennis Grubb and Associates, LLC Assisfin,, Cities Build Safi Communities a�Fer+ May 5, 2022 EXHIBIT "A" El Segundo Fire Department Attn: Fire Marshal Nicole Pesqueira 314 Main St El Segundo, CA. 90245 Subject: Fire Plan Check Proposal Dear Fire Marshal Pesqueira Dennis Grubb & Associates, LLC (DGA) is pleased to submit this proposal to provide professional Fire Plan Review and Inspection Services to El Segundo Fire Department. This proposal outlines all the elements that make DGA a high -quality solution to the El Segundo Fire Department's needs, including our experienced personnel and our range of Fire Prevention services. The following characteristics make Dennis Grubb & Associates, LLC uniquely qualified to service the El Segundo Fire Department: ➢ Experienced plan review with specific technical skills in fire code application ➢ DGA specializes exclusively in fire life safety plan review ➢ DGA does not do any design work so that there is never a conflict of interest with the clients that submit plans for review ➢ Electronic plan review capability utilizing Bluebeam software ➢ We are associates are well -versed in local, regional and state policies and practices ➢ Associates possess core business skills including strong verbal & written communication skills, professionalism & teamwork, proficiency in MS Office, Outlook, Windows and a variety of fire prevention software packages ➢ Competitive fees 6560 Van Buren Blvd, Ste B, Riverside, CA. 92503 (800) 975-7395 * (951)772-0007 Page 40 of 127 Agreement No. 6379 ➢ Excellent references, see Attachment 1 DGA Qualifications Our associates each have 20+ years direct fire plan review experience working directly with Public Fire Agencies. All of our plan examiners are [CC Certified Fire Plans Examiners DGA possess the certifications and qualifications required and are highly experienced in the use and content of all California Building Standards Codes (DGA resumes can be provided upon request) All associates are proficient in Fire Sprinklers • Fire Alarm and Monitoring Systems Underground Water Supply Fire Pumps • Special, clean agent system Commercial Cooking fire protection • High Piled Storage a Above and Below Ground Tank Storage Y Refueling Station Hazardous Material Combustible Dust e Battery Systems a Compressed Gas Systems (Medical, Industrial) 7 Smoke Control • Chemical Classification a Architectural (all occupancies including high-rise) a Leak Detection Systems Enhanced Radio Communication Systems Scope of Work • Transfer plans to and from El Segundo Fire Department with the use a courier/mail service (at the expense of DGA) within the stated turnaround time. • Verify plan compliance with adopted state & local codes/ordinances including updates • Communicate corrections with applicant and El Segundo Fire Department as directed • Stamp plans in a manner as directed by the El Segundo Fire Department. • Be available for phone calls or in -person meetings with El Segundo Fire Department as needed 6560 Van Buren Blvd, Ste B, Riverside, CA. 92503 (800) 975-7395 * (951)772-0007 Page 41 of 127 Agreement No. 6379 Assist with adopting and administering the Fire Code as needed. Plan review to ensure compliance with all applicable codes. Provide input to the Planning Department for new development and provide project specific conditions as applicable. Review and provide response to Fire Code alternate means & methods/practical difficulty requests after consultation with the Fire Marshal. • Other duties as needed and agreed to between DGA and the El Segundo Fire Department. Plan Turnaround Plan Review Times: • Initial review — 10 city business days from time of receipt • Resubmittals — 7 city business days from time of receipt • Expedite Request — 3 Business days from time of receipt Fees: Plan Review DGA fees are based on a flat fee. The fee is for the first and second plan check and includes the plan review, administrative work, and shipping. If additional review/s are required there is a flat fee per submittal (outlined below): FD Access $370 Alarm System $360 Sprinkler System — TI $305 Sprinkler — TI with calculations $375 Sprinkler System — New $500 Additional Riser/Floor Control in Same Building $170 Underground $475 Fire Pump $550 Standpipe System $250 Engineered System (H&D, Clean Agent, etc) per System $290 Special System/ Process (HPS, AST, UST, Spray Booth etc.) ea $400 Hazardous Material Disclosure $840 Smoke Control $800 Architectural- TI $390 Architectural- New $630 Architectural — New > 2-story or R-1/R-2 with more than 50 units $710 Architectural — High Rise (Buildings >75') $1475 Note: Architectural review is per building 6560 Van Buren Blvd, Ste B, Riverside, CA. 92503 (800) 975-7395 * (951)772-0007 Page 42 of 127 Agreement No. 6379 Development Review (CUP, Tract Map, Etc.) Revision Additional Reviews (Past 2nd) Expedite Plan Check (per submittal) Time & Material (Hourly Rate) $370 $220 $220 $200 $130 This proposal is valid, binding, and capable of acceptance by the El Segundo Fire Department for 90 days from the date of submittal. We look forward to building a relationship with El Segundo Fire Department and we welcome any request to provide further information regarding our qualifications to perform these services. Should you have any questions or need additional information you can contact me directly at (951) 218-5482. Dennis J. Grubb, CFPE President 6560 Van Buren Blvd, Ste B, Riverside, CA. 92503 (800) 975-7395 * (951)772-0007 Page 43 of 127 Agreement No. 6379 Attachment 1 Ccity Of Carlsbad March 23, 2022 To whom it may concern. Subject: Letter of Recommendation for Dennis Grubb & Associates Dear Sirs, I would like to take this opportunity to highly recommend Dennis Grubb & Associates (DGA) as a consulting plan review firm for Fire Services. DGA has worked for the Carlsbad Fire Department for the past 7 years and serves as our primary plan review firm. The quality of their review process, as well as the customer service that they provide to our city and our applicants, is well above all other firms that I have worked with over the past 14 years. The service levels that they provide allowed me to make the decision to transition our entire plan review process away from an in-house service to a third party service without any concerns that would negatively affect the development process. DGA continually goes the extra mile for my fire department and the personal relationship that Dennis provides assures me that I can always reach out to him if I have any questions or concerns. As the Fire Marshal, I have selected DGA to work for me for two different cities now over the past 14 years. They continue to be the only plan review fine in Southern California that only services the fire service, and the professionalism of his associates is superior to all other firms that I have used. The full service approach that he takes to our contract is something that I have yet to experience with any other firm and I will highly recommend DGA to any fire agency that is seeking to out -source their plan review process. If you would like to discuss DGA's qualifications further, please feel free to contact me at (626) 536-6677. Sincerely, dec'_'� /�t Randall Metz, EFO, CFO, FM, MIFireE Division - Fire Marshal Carlsbad Fire Department Fire Department Fire Prevention 1635 Faraday Ave. I Carlsbad, CA 92008 1 760-602-4660 1 www.carlsbadca.gov 6560 Van Buren Blvd, Ste B, Riverside, CA. 92503 (800) 975-7395 * (951)772-0007 Page 44 of 127 Agreement No. 6379 CITY OF PERRIS DE'V71 PMENT SERVICES DEPARTMENT WILDING DIVISION 135 N `D- Sava s. Perris. CA 92570.2200 TEL- (BSI ) %3-9W FAX: I"I I %341UM March 21, 2022 I'o Whom 1t May Concem, Dennis Grubb & Associstes has been providing excellent and timely fire plan review services and staff Review Comments for Planning Entitlement cases for the City of Perris since 2005. To this day Dennis aid his staff have provided excellent technical expertise, professional service and demonsvated sound judgment in executing their duties and responsibilities. In my experience, Dennis Grubb and Assocuscs anewicm to detail has helped identify and mitigate problems quickly, resulting in conrisl, expedwrte tum around tkmefrrmrres. In addition, I also consider Mr. Grubb to he an excellent resource by drawing fray his extensive knowledge and experience whenever technical code interlNtwion is sought We look forward io a successful, continued reiatims* with Dermis Grubb and Associates. S incatlY, Davld11�4m�rrrt� � Fire Marshot,. City of Ptrris 6560 Van Buren Blvd, Ste B, Riverside, CA. 92503 (800) 975-7395 * (951)772-0007 Page 45 of 127 Agreement No. 6379 11 kit City of Loma Linda Fire Department Community Risk Reduction Division To Whom It May Concern - Phis is my professional recommendation for Dennis Grubb of Dennis Grubb and Associate.% I.I.C. Dennis Grubb is currently a fire plan check consultant for the City of Loma Linda Fin Department and had provided these services to the Fire Department since June ol'2018. Over the past months. the City of Loma Linda has cxpencnced unprecedented growth with the new construction and tenant improvements. With current projects, and numerous completed projects. Dennis has not only met, but cxcco&d all cxpcctations and requirements of his current Professional Services Agreement with the City. Dennis has been very responsive and has always made himself available for training. questions. or clarifications on any issues. With over 23 years' experience in doing Fine plan checks for multiple cities, Dcrutis has built relationships with numerous professionals in a multitude of related fields. As the Fire Marshal, I have bcncfittcd immensely from this vaw network of knowledge as Dennis has also helped me to stait building rapport and rclulionships with Iltcsc professionals which in turn has provided further value and depth to this agreement_ Dennis's knowledge and attention to detail on construction and fire code requirements on plan checks has proven invaluable not only to the Fire Department, but also to the contractors and developers that we wort; with daily. Since June of 2018. our ability to provide out_i waling customer service lun incrcumA greatly with the assistance of Dermis and his firm and 1 look forward to our continued work together. Please feel free to contact me if you have any questions, or require further information I'om Ingalls Dire Marshal 25541 mamm Itnad. I urna Linch. CA 92154 r (909) 799-2850 Tax (909) 799-2891 6560 Van Buren Blvd, Ste B, Riverside, CA. 92503 (800) 975-7395 * (951)772-0007 Page 46 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Consent Item Number: B.7 TITLE: Notice of Completion of Sidewalk Construction Project for 400 West Mariposa Avenue and 300 West Pine Avenue RECOMMENDATION: Accept the construction of Sidewalk Project at 400 W. Mariposa Avenue and 300 W. Pine Avenue, Project No. PW 21-07, by Gentry General Engineering as complete; and 2. Authorize the City Clerk to file a Notice of Completion with the County Recorder's Office. 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The fiscal impact of the project is $206,496.86 to Measure M local return fund. Amount Budgeted: $260,000 Additional Appropriation: None Account Number: 127-400-0000-8382 (Measure M) BACKGROUND: On April 19, 2022, City Council awarded a standard Public Works Contract to Gentry General Engineering, Inc. in the amount of $220,010.61 and approved a construction contingency amount of $20,000 to remove trees and install new sidewalk, retaining wall, stairs, and handrail as needed on the south side of the 400 Block of W. Mariposa Avenue and the south side of the 300 Block of W. Pine Avenue. There were not any existing sidewalks at these locations prior to this construction. DISCUSSION: Page 47 of 127 Notice Completion of Sidewalk Project October 18, 2022 Page 2 of 2 Gentry General Engineering, Inc. began construction on June 6, 2022 and completed it by 8/19/22. The project was completed in accordance with the plans and specifications and to the City's satisfaction. The project was completed within budget and unspent funds will be returned to source for future projects. Staff recommends that City Council approve the recommended actions as noted. CITY STRATEGIC PLAN COMPLIANCE: Goal 1: Enhance Customer Service, Diversity, Equity, Inclusion and Communication Objective 1A: El Segundo provides unparalleled service to all customers. Goal 4: Develop and Maintain Quality Infrastructure and Technology Objective 4A: El Segundo's physical infrastructure supports an inviting and safe community. PREPARED BY: Floriza Rivera, Principal Civil Engineer REVIEWED BY: Elias Sassoon, Public Works Director APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Vicinity Map PW 21-07 2. Location Map PW 21-07 3. Notice of Completion PW 21-07 4. Before and After Pictures PW 21-07 Page 48 of 127 Vicinity Map L>EUND° W Mariposa and W. Pine Ave Sidewalk Installation Project a _..4Y.122peFial Hw I ..—.._----- —..� ---- ----- W Impe0al "vv W Imperial..�.-------•• .. �, AveA — 'ZSog par ---- •rs I cf_t,. E Imperial Awe 'Emta rn — sn C} Su Ite s W Acacia Ave a ,_A t7Acacia Ave L' a E E Walnut Ave W Walnut Ave U c us CL °} W Sycamore Ave ESycamoreAve VV Maple Ave o ar E f Oak Ave � CA E Oak Ave r El Segundo 2 Cq VV PaIhn Avem Richmond Library High School :,heel Park Ek-mc-nu rx W Maripou LAve + c e W Pine Av 9 E Pine Ave r QRecleatidn i W Holly Ave IN Far } Q V � � W c R rn PY Frunklln Ave I: to —• —_ __ ---� W El Segundo Blvd a '_' E Sycamore Ave ff: 4 v E Maple Ave t em E Oak Ave a 2 Z Center 0 SLrc-et E Palm Ave 0 � Elementary E Elm Ave E Mari poua Ave _ LA �a m W 0 r � _ J ElSegundo IY1 idd le E Holly AYr Hilltr,Fl 'Sc hooI Park E Grand Ave St Arnhonp r- -9 e 0 e4i 0E Franklin Ave c � � g � E El Segundo Blvd C heyron Employee Pa rk Korean Air F I Cargo 4 u rn r i to e ff- II I 1 I iL E M E M E LI S �till•.iir ' 3,009.3 1 1 0 1,504.66 3,009.3 Feet DISCLAIMER: The information shown on this map was compiled from different GIS sources. The land base and facility information on this map is for display purposes only and should not be relied upon without independent verification as to its accuracy. The City of El Segundo will not be held responsible for any claims, losses or damages resulting WGS_1984_Web—Mercator _Auxiliary_Sphere from the use of this map. Page 49 of 127 Location Map 1. EE�Un° W Mariposa Ave. and W. Pine Ave. Sidewalk Installation Project P+tlfll�= U ho Saari Swim Stadium _ W Mariposa Ave = W Maripasa Ave t T m GO a r= W Hine Ave 1M Pine Avc T N Q N v `O —-7 — — V C O U ;76.2 0 188.08 376.2 Feet DISCLAIMER: The information shown on this map was compiled from different GIS sources. The land base and facility information on this map is for display purposes only and should not be relied upon without independent verification as to its accuracy. The City of El Segundo will not be held responsible for any claims, losses or damages resulting VGS_1984_Web_Mercator_Auxiliary_Sphere from the use of this map. Legend - City Boundary 400 Block W. Mariposa Ave. 1. Tree removals 2. New sidewalk and curb 3. New retaining wall 4. New stairs and handrails 300 Block W. Pine Ave. 1. Tree removals 2. New sidewalk and curb 3. New parkway 4. Replacement City trees Notes Recording Requested by and When Recorded Mail To: City Clerk, City Hall 350 Main Street El Segundo, CA 90245 NOTICE OF COMPLETION OF CONSTRUCTION PROJECT Project Name: 400 Block W. Mariposa Ave. and 300 Block W. Pine Ave. Sidewalk Installation Project Project No.: PW 21-07 Contract No. 6340 Notice is hereby given pursuant to State of California Civil Code Section 3093 et seq that: 1. The undersigned is an officer of the owner of the interest stated below in the property hereinafter described. 2. The full name of the owner is: City of El Segundo 3. The full address of the owner is: 350 Main Street in El Segundo, CA, 90245 4. The nature of the interest of the owner is: Public Right -of -Way 5. A work of improvement on the property hereinafter described was field reviewed by the City Engineer on August 19, 2022. The work done was: removal of trees, construction of new sidewalk and parkway, construction of a block wall, and construction of three walkway stairs with railings. 6. On October 18, 2022, City Council of the City of El Segundo accepted the work of this contract as being complete and directed the recording of this Notice of Completion in the Office of the County Recorder. 7. The name of the Contractor for such work of improvement was: Gentry General Engineering, Inc. 8. The property on which said work of improvement was completed is in the City of El Segundo, County of Los Angeles, State of California, and is described as follows: the south sides of the public right-of-way of both the 400 Block of W. Mariposa Ave. and the 300 Block of W. Pine Ave. in El Segundo, CA, 90245. 9. The street address of said property is: Public right-of-way on W. Mariposa Ave. in front of 543 Virginia St., and public right-of-way on W. Pine Ave. in front of 442 Virginia St. and 443 Concord St. Dated: Elias Sassoon Public Works Director VERIFICATION I, the undersigned, say: I am the Director of Public Works/City Engineer of the City El Segundo, the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury the foregoing is true and correct. Executed on , 2022 at El Segundo, California. 90245 Elias Sassoon Public Works Director Page 51 of 127 PW 21-07 400 Block W. Mariposa Ave. and 300 Block W. Pine Ave. Sidewalk Installation Project, Before and After Pictures Before: 400 Block W. Mariposa Ave., looking west Before: 300 Block W. Pine Ave., looking west from Concord St. Before: 300 Block W. Pine Ave., looking east from Virginia St. After: After: After: Page 52 of 127 Give} City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Consent Item Number: B.8 TITLE: Second Reading of Ordinance Adding Chapter 13-33 to the El Segundo Municipal Code to Establish a Regulatory Program Allowing for Reasonable City Cost Recovery for Excessive False Alarms Responses RECOMMENDATION: 1. Waive the second reading and adopt the Ordinance adding Chapter 13-33 to the El Segundo Municipal Code. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The proposed Ordinance would enable the City's cost recovery for excessive fire false alarm calls. The El Segundo Fire Department ("ESFD") will present a fee resolution on October 18, 2022 (or as soon thereafter as may be considered) to the City Council to modify an existing false alarm fee that ESFD included with the recently adopted Master Fee Schedule. The adopted fee allowed the City to collect ESFD costs after three false alarms, but the proposed amendment will conform with the Ordinance to allow City cost recovery after the first two false alarms. City staff anticipates the Ordinance will cause most alarm system owners to be more responsible in maintaining their systems in proper working order, requiring a lower number of responses. Pursuant to California Constitution article XIIIC, § 1(e)(3), the fees authorized through the Ordinance do not constitute a "tax" as they concern City regulation enforcement and investigation performance associated with a regulatory program. BACKGROUND: California Constitution article XIIIC, § 1(e)(3) exempts from the definition of a "tax," municipal fees imposed to recover the City's regulatory activity costs that is part of a regulatory program. ESFD proposes the City Council's adoption of the proposed Ordinance to establish a program regulating fire alarms and enabling the City's cost recovery or reasonable costs incurred in responding to excess fire alarms (i.e., more Page 53 of 127 False Fire Alarm Ordinance October 18, 2022 Page 2 of 3 than two false alarms in a calendar year). DISCUSSION: Timely response to reported emergencies is one of the most valuable services provided by the ESFD. Prompt response to fire alarms is a service reasonably expected for the protection and well-being of the entire community, and ESFD's responds to such alarms as reports of emergencies. A false alarm is defined as the activation of an alarm when an emergency does not exist. From 2021 to 2022, the ESFD is seeing an increasing number of false alarms. In 2021, there were 317 false alarm calls and there have been 264 false alarm calls so far in 2022 (January 1- September 1, 2022). To help recover the City's reasonable costs associated with responding to such calls and to encourage alarm system owners to be more responsive in maintaining their systems in proper working order, the ESFD is proposing a fee to be charged on the third false alarm call and each subsequent call -out at the same address in the calendar year. Any person may receive two responses to false alarms without charge. Third and subsequent responses in the same calendar year will be billed at the costs determined by the City of El Segundo Fee Schedule. Activation due to weather, or to power outages is not considered billable within the scope of this policy. CITY STRATEGIC PLAN COMPLIANCE: Goal 2: Support Community Safety and Preparedness Objective: El Segundo is a safe and prepared city. Goal 5: Champion Economic Development and Fiscal Sustainability Objective 513: El Segundo approaches its work in a financially strategic and responsible way. PREPARED BY: Nicole Pesqueira, Fire Marshal REVIEWED BY: Deena Lee, Fire Chief APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: El Segundo False Fire Alarm Ordinance Page 54 of 127 ORDINANCE NO. AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE TITLE 13 TO ADD A NEW CHAPTER 22 TO ENABLE CITY COST RECOVERY FOR EXCESSIVE FALSE FIRE ALARMS. THE CITY COUNCIL OF THE CITY OF EL SEGUNDO DOES ORDAIN AS FOLLOWS: SECTION 1. El Segundo Municipal Code ("ESMC") Title 13 (Building Regulations) is amended to add Chapter 22 (False Fire Alarms) to read as follows: liia:/_1i94Zw*A FALSE FIRE ALARMS 13-22-1 Purpose. This chapter is adopted in accordance with California Constitution article XI, § 7 to protect public health, safety, and well-being by reducing the waste of City Fire Department resources in responding to excess false fire alarms and establishing a mechanism for reasonable City cost recovery to safeguard City resources. Pursuant to California Constitution article XI IIC, § 1(e)(3), the fees authorized in this chapter do not constitute a "tax" as they concern City regulation enforcement and investigation performance associated with a regulatory program. 13-22-2 Definitions. For purposes of this chapter: A. "Alarm" means the giving, signaling, or transmission to the Department, or any Department employee or designee, whether by telephone, e-mail, or other medium, information to the effect that a fire or emergency situation exists at or near the place indicated by the person giving, signaling, or transmitting such information. B. "Automatic fire sprinkler system" means an integrated system of underground and overhead piping designed in accordance with fire protection standards that is activated by hear from fire, or other similar mechanism, and discharges water over the fire area. C. "Chief' means the El Segundo Fire Department Chief. D. "Department" means the El Segundo Fire Department. E. "False alarm" means an alarm requiring Department response where a fire or emergency situation does not exist. Page 1 of 4 Page 56 of 127 City of El Segundo Ordinance No. Page 2 of 4 F. "Fire alarm system" means a system designed to detect and announce the presence of fire or fire byproducts. G. "Notice" means written notice, given by personal service upon the addressee, or given by the United States mail, postage prepaid, addressed to the person to be notified. at the last known address. Service of such notice will be effective upon the completion of personal service, or upon the placing of the same in the custody of the United States Postal Service. H. "Person" means any company, firm, partnership, limited liability company, joint venture, unincorporated organization, corporation, corporation, government agency, or natural person. 13-22-4 Alarm Registration. Any person that owns or operates a business in the City must notify the Department of any installation of any automatic fire sprinkler system or fire alarm system. Such notice must be in writing, delivered to the City within 10 days of installation, and include the following information: name, address, and telephone number of the associated alarm business or its agent and the name, address, and telephone number of the best contact person for the business. 13-22-4 Alarm Testing. A person must notify the Department at least 24 hours prior to any service, test, repair, maintenance, adjustment, alterations, or installations of an automatic fire sprinkler system or fire alarm system that may activate a false alarm. Any alarm activated where such prior notice has not been duly given to the Department will constitute a false alarm for this chapter's purposes. 13-22-5 Fees Imposed. The owner or lessee of any premises containing an automatic fire sprinkler system or fire alarm system will be assessed a fee under this chapter for each false alarm more than two, occurring within any calendar year. 13-22-6 City Council Sets Fees. The City Council will, by resolution, establish the amount of all fees imposed under this chapter. 13-22-7 Fee Collection. It is the Department's duty to collect fees pursuant to this chapter." Page 57 of 127 City of Ell Segundo Ordinance No. Page 3 of 4 SECTION 2. Environmental Review. This Ordinance was reviewed pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the "CEQA Guidelines"). Based upon that review, this Ordinance is exempt from further review pursuant to CEQA Guidelines §15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. SECTION 3. Electronic Signatures. This Ordinance may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature. SECTION 4. Construction. This Ordinance must be broadly construed to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 5. Enforceability. 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 6. 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 provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 7. Recording. 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 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 8. Execution. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Ordinance signifying its adoption by the City Council of the City of El Segundo, and the City Clerk, or duly appointed deputy, is directed to attest thereto. SECTION 9. Effectiveness. This Ordinance will take effect on the 30th day following its final passage and adoption. It may be enforced commencing on January 1, 2022. ORDINANCE NO. HAD ITS FIRST READING ON , ITS SECOND READING ON , AND WAS DULY PASSED, APPROVED, Page 58 of 127 City of Ell Segundo Ordinance No. Page 4 of 4 AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AT ITS REGULAR MEETING OF Drew Boyles, Mayor ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, CITY ATTORNEY Joaquin Vazquez, Deputy City Attorney Page 59 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Consent Item Number: B.9 TITLE: Resolution Allowing Continued Teleconferenced Public Meetings RECOMMENDATION: 1. Approve the proposed resolution to continue the City's utilization of relaxed teleconferencing requirements under the Brown Act. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The proposed action would have no significant fiscal impact on the General Fund. BACKGROUND: Assembly Bill No. 361 ("AB 361 ") amended certain provisions of the Ralph M. Brown Act governing open meetings to allow teleconferencing, including internet-based video conferencing, in a manner similar to previously -issued gubernatorial executive orders. AB 361 allows a legislative body to continue utilizing teleconferencing to conduct public meetings under certain circumstances, provided it makes certain findings outlined in Government Code § 54953(e). Government Code § 54953(f) allows the municipal, but not state, legislative bodies to continue such teleconferencing until the earlier of the lifting of the Governor's state of emergency declaration or December 31, 2023, so long as certain findings are made every 30 days. DISCUSSION: Since the Governor's state of emergency is still effective and the County of Los Angeles continues to strongly recommend certain masking and social distancing measures, the necessary findings can be made for the City Council to adopt the proposed Resolution allowing the continued use of "hybrid" teleconferenced meetings pursuant to Government Code §§ 54953(e) and 54953(f) for a period of 30 days from the date of the Page 60 of 127 Resolution Allowing Continued Teleconferenced Public Meetings October 18, 2022 Page 2 of 2 Resolution's adoption. CITY STRATEGIC PLAN COMPLIANCE: Goal 1: Enhance Customer Service, Diversity, Inclusion and Communication Objective 1A: El Segundo provides unparalleled service to all customers. Objective 1 B: El Segundo's engagement with the community ensures excellence. PREPARED BY: Joaquin Vazquez, Deputy City Attorney REVIEWED BY: Mark Hensley, City Attorney APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: ES- Reso AB 361 Extension 10182022 Page 61 of 127 RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF CITY OF EL SEGUNDO FINDING THAT CERTAIN CONDITIONS EXIST TO CONTINUE CONDUCTING PUBLIC MEETINGS VIA TELECONFERENCING PURUSANT TO GOVERNMENT CODE SECTION §§ 54953(e) AND 54953(f). The City Council of the city of El Segundo does resolve as follows: SECTION 1. Findings. The City Council finds and declares as follows: A. On March 4, 2020, Governor Gavin Newsom proclaimed a State of Emergency to exist in California due to the threat of the COVID-19 pandemic and such State of Emergency has not been rescinded by either the Governor or the California Legislature. B. This gubernatorial proclamation, among other things, suspended local government emergency declaration, reporting, and extension requirements of Government Code § 8630 for the duration of the COVID-19 pandemic. C. Effective September 16, 2021, Assembly Bill No. 361 ("AB 361 ") took effect which, among other things, amends certain provisions of the Ralph M. Brown Act ("Brown Act") governing open meetings to allow teleconferencing, including internet-based video conferencing, in a manner similar to previously issued gubernatorial executive orders. D. During a proclaimed state of emergency, AB 361 allows a legislative body, like the City Council, to continue utilizing teleconferencing to conduct public meetings under certain circumstances, provided the legislative body makes certain findings. E. The City Council has previously adopted and made findings to continue meeting via teleconferencing pursuant to AB 361 and seeks to make additional findings under Government Code § 54953(e) to continue such teleconferencing use. F. The Los Angeles County Department of Public Health issued an order, effective April 22, 2022, maintaining its position that masks are "strongly recommended" in indoor settings to prevent transmission of COVID-19. G. Following weeks of high case numbers fueled by highly infectious strains of COVID-19, BA.4 and BA.5, in a July 12, 2022 press release, the Los Angeles County Department of Public Health has -1- Page 62 of 127 recommended "wearing high -quality respirator masks and getting tested" to slow the spread of COVID-19." SECTION 2. Teleconferencing; Ratification. A. Pursuant to Government Code § 54953(e), the City Council has reconsidered the circumstances of the state of emergency finds as follows: 1. California continues to be in a declared state of emergency pursuant to Government Code § 8625 (the California Emergency Services Act; see Government Code § 54953(e)(3); see also Governor's Proclamation dated March 4, 2020); and 2. Based upon the Order of the Health Officer for County of Los Angeles Department of Public Health (dated April 21, 2022 and effective April 22, 2022) and recent public Los Angeles County Department of Public Health releases, masks are strongly recommended to curb the spread of COVID-19 (Government Code § 54953(e)(3)(B)(ii)). B. Accordingly, to protect public health and safety the City Council: 1. Finds that it is in the public interest to conduct City Council meetings via teleconference as defined by Government Code § 54953; 2. Authorizes City Council members to appear at regular and special meetings in person; and 3. Authorizes public officials, designated by the City Manager, or designee, to attend such City Council meetings if presenting matters to the legislative body or if the official's presence at the meeting is otherwise deemed necessary by the City Manager or designee. C. The City Council will adhere to all requirements of Government Code § 54953 governing teleconferencing during the emergency including, without limitation, posting agendas; allowing for real-time public comment via either call -in or internet-based; allowing for written communications that will be either read or summarized into the record during the meeting as determined by the City Council; and protecting the statutory and constitutional rights of all persons appearing before the legislative body. SECTION 3. Environmental Review. This Resolution itself and the actions anticipated herein were reviewed pursuant to the California Environmental Quality -2- Page 63 of 127 Act (Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the "CEQA Guidelines"). Based upon that review, this action is exempt from further review pursuant to CEQA Guidelines § 15269(a) because the protection of public and private property is necessary to maintain service essential to the public, health and welfare. SECTION 4. Reporting. Every 30 days following adoption of this Resolution, the City Council will reconsider the extension of the teleconferencing method of public meetings in accordance with Government Code § 54953(e)(3). Such determinations may be placed on the consent calendar. SECTION 5. Signature Authority. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is directed to attest thereto. SECTION 6. Effective Date. This Resolution will take effect immediately upon adoption and will remain effective unless repealed or superseded. SECTION 7. City Clerk Actions. The City Clerk will certify to the passage and adoption of this Resolution, enter it in the City's book of original Resolutions, and make a record of this action in the meeting's minutes. PASSED AND ADOPTED this day of 12022. Drew Boyles, Mayor STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO I, Tracy Weaver, City Clerk of the City of El Segundo, California, hereby certify that the whole number of members of the City Council of the City is five; that the foregoing Resolution No. was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the day of , 2022, and the same was so passed and adopted by the following roll call vote: AYES: NOES: ABSENT: -3- Page 64 of 127 ABSTAIN: ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: MARK HENSLEY, CITY ATTORNEY Joaquin Vazquez, Deputy City Attorney m Page 65 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Public Hearings Item Number: C.10 TITLE: Public Hearing on the Bargaining Impasse Between the City of El Segundo and the El Segundo Firefighters' Association Regarding the Potential Impacts of the Brownout (Temporary Suspension) of Engine Number 32 RECOMMENDATION: Conduct a public hearing on the bargaining impasse between the City of El Segundo and the El Segundo Firefighters' Association over the potential impacts of the Brownout of Engine Number 32. 2. Adopt a resolution Authorizing the Implementation of the Terms of the City's April 25, 2022, Last, Best, and Final Offer to the El Segundo Firefighters' Association Pursuant to Government Code § 3505 which will brownout Engine Number 32 for a six-month period pursuant to certain terms and conditions. 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: After the public hearing, should the City Council implement the City's Last, Best, and Final Offer ("LBFO"), cost savings are estimated to be $600,000 over a six-month period for the Brownout of Engine Number 32. BACKGROUND: On November 22, 2021, the City's negotiation team began meeting and conferring in good faith with the El Segundo Firefighters' Association ("ESFA") to identify and discuss any impacts of a brownout of Engine Number 32 for a six-month period. These meetings did not result in an agreement and impasse was declared by the ESFA on May 11, 2022. A fact-finding hearing was held on this matter on September 7, 2022. The recommendations of the neutral factfinder were made publicly available on the City's website on October 13, 2022 and found that the City could brownout Engine Number 32 pursuant to certain terms and conditions (Attachment 1). The resolution Page 66 of 127 Public Hearing on the Bargaining Impasse Regarding Brownout of Engine 32 October 18, 2022 Page 2 of 4 authorizes the implementation the terms of the City's LBFO (Attachment 2). DISCUSSION: During the FY 2021-22 Budget public hearing, City Council discussed the City's ability to complete unfunded capital improvement projects and deliberated opportunities to reduce expenditures without impacting the safety or services to the community. As the Police and Fire Departments are the largest budgets in City, Council inquired about potential budget reductions through staffing and operational efficiencies. After presentations from representatives from both departments, City Council directed staff to make a reoccurring expenditure reduction from the Fire Department budget in the amount of $1,000,000. On November 2, 2021, staff returned to City Council with an item outlining a recommendation to achieve the savings which included the temporary suspension (brownout) of Engine Number 32 for the remainder of FY 2021-22. Beginning on November 22, 2021, the City and ESFA met and conferred eleven times over six months to discuss the impacts of the brownout of Engine 32 but were unable to reach an agreement. On April 25, 2022, the City provided ESFA with its LBFO which included the following: • Engine 32 will be browned -out for a period of six-month effective May 16, 2022, or the City Council's adoption of this LBFO. • The fire suppression personnel displaced from this brownout will work in place of other firefighters, engineers and captains who are on vacation, sick leave, are injured, or in training or filling other department needs. • Fire Station 2 will not be closed. Truck 32 (ladder truck) and Rescue 32 (ambulance) will remain available to respond to calls for service. • ESFA members shall not be subject to discipline if the Fire Department is unable to complete the City expected number of building inspections during the six- month period of the brownout. • City staff will assess the impact on the level of service to City residents from the six-month brownout of Engine 32 and submit a report to the City Council for consideration of further action, if any. If the City's LBFO is implemented, there will be no change in the total sworn Fire Department personnel. All sworn ESFA members will retain their jobs, as well as retain their current salary and benefits. However, there will be a reduction of overtime available to work as a result of the City's LBFO. This reduction in available overtime is what results in a savings to the City. Currently, the average ESFA member has the opportunity to earn considerable overtime. In calendar year 2021, the average ESFA Page 67 of 127 Public Hearing on the Bargaining Impasse Regarding Brownout of Engine 32 October 18, 2022 Page 3 of 4 member earned overtime as follows: each Fire Captain on average earned $82,398 with several earning over $100,000, each Fire Engineer on average earned $66,714, each Fire Paramedic on average earned $64,575, and each firefighter on average earned $51,529. The reporting on this data can be found at www.tranparentcalifornia.com, as well as the State of California Controller's website at: https://publicpay.ca.gov/Reports/Cities/City.aspx?entityid=184&year=2021. There were several positions that earned over $100,000 in overtime during calendar year 2021. If the City's LBFO is implemented, this would result in ESFA members having an average reduction in overtime of $15,385. On May 11, 2022, ESFA rejected the LBFO and declared impasse. The Meyers-Milias-Brown Act ("MMBA"), codified in Government Code §§ 3500-3511, governs labor management relations in government employment and outlines the procedures for labor negotiations and impasse. If impasse is declared, the labor association may make a request to the Public Employee Relations Board ("PERB") to have the impasse heard by a factfinding panel. This three -member panel is led by a neutral factfinder with one member each from the government entity and the labor association. ESFA requested factfinding on May 31, 2022, and the hearing was held on September 7, 2022. The factfinding report was issued October 3, 2022, and City Council directed a public hearing on the impasse during the closed session on October 4, 2022. The report was made publicly available on the City's website on October 13, 2022. At the public hearing, the City Council and the public will be provided with presentations from the City's labor negotiator and the ESFA's representative on the issue at impasse. The City Council will also receive public comments on the item. Following this public hearing, the City Council may, if it chooses, implement its LBFO or alternatively, discuss and take other action related to this item. CITY STRATEGIC PLAN COMPLIANCE: Goal 5: Champion Economic Development and Fiscal Sustainability Objective 513: El Segundo approaches its work in a financially strategic and responsible way. a 4 :1_1:141J yA Rebecca Redyk, Human Resources Director REVIEWED BY: Rebecca Redyk, Human Resources Director APPROVED BY: Barbara Voss, Deputy City Manager Page 68 of 127 Public Hearing on the Bargaining Impasse Regarding Brownout of Engine 32 October 18, 2022 Page 4 of 4 ATTACHED SUPPORTING DOCUMENTS: 1. Neutral Fact Finder Report 2. Resolution Authorizing the Implementation of the Terms of the Last Best Final Offer 3. Exhibit A to Resolution Page 69 of 127 City of El Segundo and El Segundo Firefighters Association PERB Case No. LA-IM-315-M Factfinding Report and Recommendations Tony Butka, Factfinding Chair Nate J Kowalski, Employer Panel Member Jacob Kalinski, Firefighters Assn Panel Member Procedural Background During the course of negotiations for a successor agreement between the Firefighters Association and the City of El Segundo, on December 8, 2021 the City proposed a sole carve -out proposal referred to as "Browning -Out Engine 32 for a 6-month Trial Period. In the overall bargaining history, the parties met 11 times prior to a declaration of Impasse on May 11, 22 by the Firefighters Association on the sole issue of Browning - our Engine 32. On May 31St the Association filed for factfinding with PERB. The overall negotiations for a successor agreement continued on a separate track, ultimately resulting in a separate request for factfinding. PERB granted that request as Case No LA-IM-311-M, which is entirely separate from this proceeding. Factfinding The request for sending the single issue matter to a factfinding panel went to PERB, and they ultimately approved the request as PERB Case No. LA-IM-315-M. The parties jointly selected Tony Butka as Factfinding Chair, with Nate J Kowalski as Panel member for the City, and Jacob Kalinski as Panel member for the Firefighters Association. The factfinding hearing was scheduled on September 7, 2022, at the City Hall Chambers in El Segundo, starting at 10 am. All parties were afforded full opportunity to present evidence and argument, with each party providing binders and video presentations. The hearing concluded at approximately 2 pm, with the factfinding Chair agreeing to provide a draft report to the panel members, review their input thereafter, to be followed by a final report and recommendations. Criteria Pursuant to Government Code 3505.4, there are eight (8) criteria to be considered by the Panel in arriving at findings and recommendations. (1) State & Federal Laws (2) Local rules, regulations, or ordinances Page 70 of 127 (3) Stipulations of the parties (4) The interests and welfare of the public and the financial ability of the public agency (5) Comparisons of the wages, hours, and conditions of employment for the employees involved in the factfinding proceeding with the wages, hours, and conditions of employment of other employees performing similar services in comparable public agencies (6)The Consumer Price Index for goods and services, commonly known as the cost of living (7)The overall compensation presently received by the employees, including direct wage compensation, vacation, holidays, and other excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received. (8) Any other facts, not confined to those specified in paragraphs (1) to (7), inclusive, which are normally or traditionally taken into consideration in making the findings and recommendations. The City's Position Both the City and the FFA articulated their positions through written, oral, and video submissions, and both did an excellent job. It appears that the handling of the "Browning -Out Engine 32 Plan" was more contentious than the City anticipated. In their Powerpoint presentation, Slide 3 Overview of Bargaining History', states that "Parties met and City provided the "Browning -Out Engine 32" plan (Exhibit 12). FFA presented a counter offer. Discussedf Brown -Out and the belief that there was already an agreement on the Brown -Out based on FFA members inputs/edits to Chief Lee's decision to Brown -Out -Engine 32 (safety (safety valves for mental health)." About a week later the parties met again on this issue, and the Firefighters Association advised that they were in opposition to the Browning -Out Engine 32 proposal. In any event, from the standpoint of the employer, there should be no controversy that the decision to Brown -Out Engine 32 is not subject to factfinding. Indeed, the Firefighters Association tacitly agreed. As presented to the Panel, the issue is defined as a "6 month trial so that the City can "assess the benefits of Browning -Out Engine 32 without jeopardizing the safety of FFA members or the public." To further their position, the City provided two documents. The first is titled "City of El Segundo Brown -Out Plan", delineating the scope of the trial, and stating that "City staff will assess the impact on the level of service to City residents from the six-month brow - out of Engine 32 and submit a report to the City Council for consideration of further action, if any." The document parallel's the City's last, best, and final offer. The Firefighters Position In late January 2022, the Firefighters Association met with the City, and formally Page 71 of 127 rejected the City's Browning -Out Engine 32 Plan, ultimately resulting in this hearing. The Firefighters argue that there will be two major impacts to the Study; Firefighter Safety and Increased Workload. In terms of Safety, they believe that by having to rely on outside Fire Engines, response time to a structure fire will be slower than using Engine 32, and according to NPFA studies, "every minute the fire burns, it doubles in size". With respect to increased workload, the Firefighters argue that under the terms of the Browning -Out Engine 32 Plan, the work force is reduced from 13 to 10 firefighters per day, a reduction of 23%. The City's response was that the statistics used by the Firefighters relied on data for inspections only. To that end, they agreed that if members are unable to complete inspections during the trial period, "they will not be subject to discipline if goals for building inspections are not met." Ultimately, the FFA proposed a new staffing model for the period of the trial and beyond. It was called an "Ambulance Operator Program:". They indicated that this proposal would generate at least $1 million in savings per year. It seems that the basis for this proposal was using the El Segundo Fire Department Annual Reports from 2012- 2022 (attachment 9 in the FFA Binder). Analysis and Recommendation As the City pointed out, the NPFA study refers to structure fires in slide 9, for major incident fires , only a fraction more than 2% of the major i incidents actually involved fires. in the last three years (2018-2020) It is difficult to really assess the statistics, since one huge structure fire with slower response times is one too many. Although specifics were not provided, the Firefighters also included a number of other functions which would there would be increased workload per employee; emergency responses/employee,increase in staffing assignment duties, increase in station and equipment maintenance duties, and an in increase in training hours for the 'new operational model'. While the "Ambulance Operator Program" is intriguing, it goes beyond the scope of a six-month Browning -Out Engine 32 Plan and effects bargaining. In upcoming negotiations, it would be appropriate. Going back to what is in front of the Factfinding Panel, the sole issue in question is the City's sole carve -out proposal referred to as "Browning -Out Engine 32 for a 6-month Trial Period. Page 72 of 127 Ultimately, I can find nothing in the MMBA which precludes the employer from conducting a 6-month trial program. The decision to perform such a trial is clearly within the City's authority. To further their position, the City provided two documents. The first is titled "City of El Segundo Brown -Out Plan", delineating the scope of the trial, and stating that "City staff will assess the impact on the level of service to City residents from the six-month brow - out of Engine 32 and submit a report to the City Council for consideration of further action, if any." The document parallel's the City's last, best, and final offer. I mention the MMBA because the parties bargaining history makes it clear that the City has absolutely no interest in bargaining over the Unions proposals, nor is there any indication that they are willing to consider any modifications to the trial program. So long as the City sticks to the terms of their trial, I believe they are within their rights. Tony Butka, F ctfinding Chair Jacob Kalinski, Firefighters Assn Panel Memberi Nate J. Kowalski, City of El Segundo Panel Member Page 73 of 127 City of El Segundo and El Segundo Firefighters Association PERB Case No. LA-IM-315-M Factfinding Report and Recommendations Dissenting Opinion The City of El Segundo ("City") proposes to "brown out" Fire Engine 32 on a six month trial basis. Although the City did not clearly articulate its justification for the brown out, it is without doubt an effort to save money at the expense of safety. The idea for the brown seems to have begun with the observation that calls for service declined during the pandemic. Despite being presented with more recent data showing that, in 2022, the Fire Department is on pace for its highest volume of calls for service on record, the City trudges on jeopardizing the safety of its citizens and its employees in a misguided attempt to save money. The Majority opinion authored by Factfinding Chair Tony Butka blesses the brown out on a trial basis, concluding, "Ultimately, I can find nothing in the [Meyers-Milias-Brown] Act] which precludes the employer from conducting a 6-month trial program. The decision to perform such a trial is clearly within the City's authority. So long as the City sticks to the terms of their trial, I believe they are within their rights." Inherent in that conclusion is a fundamental misunderstanding of the factfinding process. The purpose of factfinding is not to ascertain whether the City is within its rights to implement the brown out. Moreover, the El Segundo Firefighters Association ("Association") did not argue at the hearing that the City was legally prohibited from doing so; nor is this the proper forum to adjudicate whether the City is or not within its rights to implement a particular action. Such a determination is squarely within the jurisdiction of the Public Employment Relations Board (PERB). (See Government Code section 3509, subdivision (b).) Rather, the purposes of factfinding are simply to "find facts" and provide recommendations as to what changes should be made given those factual findings using the criteria set forth in Government Code 3505.4 as follows: (1) State & Federal Laws (2) Local rules, regulations, or ordinances (3) Stipulations of the parties (4) The interests and welfare of the public and the financial ability of the public agency (5) Comparisons of the wages, hours, and conditions of employment for the employees involved in the factfinding proceeding with the wages, hours, and conditions of employment of other employees performing Page 74 of 127 similar services in comparable public agencies (6)The Consumer Price Index for goods and services, commonly known as the cost of living (7)The overall compensation presently received by the employees, including direct wage compensation, vacation, holidays, and other excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received. (8) Any other facts, not confined to those specified in paragraphs (1) to (7), inclusive, which are normally or traditionally taken into consideration in making the findings and recommendations. (Emphasis added.) As to comparisons of wages, the consumer price index, and the overall compensation presently received by the employees, Neutral Factfinder Najeeb Khoury has already recommended the employees represented by the Association receive salary increases of 4.5% in this year and the next. A true and correct copy of his recommendation is attached hereto as Exhibit 1 and incorporated herein by reference. The City apparently has no plans to provide any salary increases. With respect to the criteria, "interests and welfare of the public and the financial ability of the public agency", the City did not present any evidence of its financial position. However, the Association presented a wealth of evidence showing that the City's proposal is not in the best interest of the public as it has significant effects on the safety of the public and safety of its firefghters. The Association quoted an industry standard from the National Fire Protection Agency, "every minute a fire burns, it doubles in size." As such, even a delay of minutes tremendously increases the hazard to the public and to the firefighters attempting to suppress the fire. In what seems obvious, the Association showed that eliminating one of the two fire engines servicing the City would cause delays in response to fires within the City which would allow a fire to spread more rapidly, thereby causing significantly more danger to the firefighters as well as to the citizens of El Segundo and their property. For example, if a structure fire burned in Fire Station 2 District, which is currently serviced by Fire Engine 32, there would be a delay in the initial response. If there was a fire in Fire Station District 1, currently serviced by Fire Engine 31, there would be a delay in the arrival of the second engine. Because the fire engines are only staffed with 3 firefighters and 4 are necessary to enter the scene of a structure fire, even in District 1, the delay in arrival of the second engine will greatly increase the spread of the fire. The Association also established that, in the absence of Engine 32, the City would have Page 75 of 127 to rely on resources from Manhattan Beach (3.2 miles away), Los Angeles City (3.7 miles away), Los Angeles County (3.7 or 5.1 miles away), or Redondo Beach (7.0 miles away), all of which are stationed further from Engine 31 than Engine 32. Furthermore, those resources are dedicated to other jurisdictions so it is unknown whether they will be available to respond within the City. The City claimed throughout the hearing that the Association's safety concerns were speculative and that it needed 6 months to see what the effects of longer response times would be. No rational person needs to test the hypothesis that resources stationed in the City will respond more quickly than those stationed outside its limits. If the City believes that its citizens are just as safe relying on resources from outside the city as in it, it should be transparent and have the bravery to tell its citizens as much. I for one seriously doubt that the City's leaders will tell its citizens what its representatives were asked to convey to the factfinding panel. As the Majority opinion reflects, "Ultimately, the FFA proposed a new staffing model for the period of the trial and beyond. It was called an `Ambulance Operator Program'. They indicated that this proposal would generate at least $1 million in savings per year. It seems that the basis for this proposal was using the El Segundo Fire Department Annual Reports from 2012-2022 (attachment 9 in the FFA Binder)." However, the Majority opinion ultimately dismisses the Ambulance Operator Proposal, without any legal authority or analysis, on the grounds that it "goes beyond the scope of a six-month Browning -Out Engine 32 Plan and effects bargaining." If the City is attempting to save money through the brown out proposal, which it assuredly is, the Ambulance Operator Proposal accomplishes this goal without any decrease to safety. On that basis, I would recommend adoption of the Ambulance Operator Proposal. Dated September 23, 2022 RAINS LUCIA STERN ST. PHALLE & SILVER, PC Jacob A. Kalinski Association Panel Member Page 76 of 127 Attachment 1 Page 77 of 127 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2.6 27 28 Najeeb N Khoury P.G. fox 67 Montrose, CA 91021 213-304-528 nkhouryadr@gi-nail.com 11MIN P1 M-TN so loll R409101#111 too] ILL PURSUANT TO TIME MERCERS-MILIA -BROWN ACT EL SE GUNDO IiIF EFIGHTER ' ASSOCIATION, T FF, LOCAL 369 Association, w� CITY OF EL SEGUNDO, Case No.. LA-IM-31 i-M FACTFINDING R-E PORT AND RECOMMENDATIONS ION FOR En-LEMENT Chairpersan; N jeeb N. Khoury Employer panel Member: Steven Berliner, Liebert Cassidy Whitmore Association Panel Member: Robert Wexler, Rains, Lucia & Stern Lead Advocate For the Association: Jacob A. Kati nski, Rains, Lucia & Stem Lead Advocate For the Employer, Irma Rodriguez Moisa, Atkinson, Andelson, Loya, Rudd &. Romo Nearing mate; ,dune 8, 2022 BACKGROUND E1 Segundo Firef ghters' Association, IAFF, Local 3682 "Association'' represents Fire fiahters, engineers and captains employed bar the ity of El Segundo C'Erinployer" or"City" . FA TFINDING RL-PORT AND RECO M M EN DATI ONS FOR SETTLEMENT - Pa e 78 of 127 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 4 23 6 27 29 El Segundo is a city located near Los Angeles International Airport ("LAX"). The cost of I salary increase for this unit is 97,00. The parties have been bargaining for a successor contract, but, to date, have been unable to reach an agreement. A declaration of impasse was made on March 21, 2022, and the Association made a factfinding request to the Public Employment Red mions Board (PERB) on April 5, 2022, The parties selected me to serve as the factfinding panel chair. The factfinding bearing occiuTed on .tune 8, 2022 at El Segundo's City Hal I. Both parties presented through designated advocates and provided documents supporting their respective positions. ANALYTICAL FRAMEWORK Unlike interest arbitration, where a third -party neutral sets the terms of a new contract, a third -party neutral chair in a Meyers- iliac -Brown Act (MM13A) factfinding simply provides recommendations. In essence, this makes factfindir g an extension of bargaining. Ultimately, the parties must persuade one another of their positions, and the neutral WWI simply provides an outside perspective to help the panties along. As set forth in California Government Code Section 3505.4(d), the MMBA requires factfinders to "consider, weigh, and be guided" by the following criteria: 1. State and federal laws that are applicable to the employer. 2. Local rules, regulations, or ordinances. 3. Stipulation of the parties. 4. The interests and welfare of the public and the financial abihty of the public agency. 5. Comparison of the wages, hours, and conditions of employment of the employees involved in the factfinding proceeding with the wages, hours, and conditions Of other employees performing similar services in comparable public agencies. FAGTFINDING REPORT AND itEGOMMEN DATtON S I -OR SETTLEMENT - 2 e 79 of 127 1 2 3 4 5 6 7 .8 9 l� 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6, The consumer price index for goods and services, commonly known as the cost of living, 7_ The overall cornpensation presently received by the einplo ees, including direct v4a�, compensation, vacations, holidays, and other excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received. 8, Any other facts, not confined to those specified in paragraphs (1) to (7), inclusive, which are normally and traditionally taken into consideration in malting the findings and i ommendations, Neutral factfinders have typically required the party seeking a change to the status quo to carry the burden ofpersuasion, and I will follow that convention in this case, ISSUES AND RECOMMENDATIONS OMMENDATION Issue 1, Mundatory Arbitration of Employment belated Claims The City proposes languag4e that would require Association represented employees submit to arbitration "any and all employment -related clairns or controversies, such as breach of employment contract, breach of covenant of good faith and fair dealing, negligent supervision or hiring, wrongful discharge in violation of public policy, unpaid wages of overtime under the state and federal wage payment laws, breach ofprivaoy claims, in(entional or negligent infliction oP emotional distress claims, fraud, defamation and divulgence of trade secrets ... [and] claims tl could be asserted under all state and federal anti -discrimination laws." The City also seeks to mare discipline subject to arbitration, In seeking this provision, the City notes the proposal preserves ernployee rights and remedies and just alters the forum. in which claims are brought; that the City seeks an efficient I i;ACTFINDING REPORT AND RECOMMENDATIONS FOR S131-'LEMENT- 3 e 80 of 127 1 2 3 4 5 6 7 8 9 �o 12 13 14 15 16 17 18 19 20 1 22 23 24 5 26 27 28 admiixistration cf claims and seeks to manage the risk of "run away" jury verdicts; and that this provision already exists in the City's non -safety MOUs. The Association vehemently opposes this proposal. It notes that no other public sector agency has such a clause; that the City should focus on eliminating bad employment practices rather than limiting the rights of employees to bring claims; that the City is seeking to have the ,association waive rights that are statutorily created and not created by the MOU; and that the City cannot legally impose this proposal, Recommendation. 1 do not recommend the C:ity's proposal with regards to having employment related claims be subject to mandatory arbitration, There are three reasons for my recommendation - First, a criterion that the MMI3A requires me to consider is a "comparison of the wages, hours, and conditions of employment of the employees involved in the factfinding proceeding with the wages, hours, And conditions of employment of other emRlZees performingsimilar services in comparable public a encies." �e p a.sis addea), The City can point to no other fire agency in the state that requires employees to submit non-M OU related claims to binding arbitration. This requested change in the status quo is unprecedented among fire agencies, weighs strongly against recommending it. Second, it simply makes no logical sense to require a union to bargain away statutory or common law rights that do not arise from the collective bargaining process. There is a long practice and history of arbitration being required for workplace disciplinary actions and disputes arising from collectively hargained agreements. This widespread practice makes logical sense. In the private sector, it is the collectively bargained agreement that norinally turns an at will employment situation into a just cause one; therefore, it is proper for a contractually created process —arbitration —to decide whether just cause exists for discipline in a kfnioni?,ed context_ FA TF IN L)l NG REPORT AND RE OM M FN DATION S FOR 8> TTLEMENT - 4 Page 81 of 127 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 17 Is .19 20 21 22 23 24 25 6 27 8 In the public sector, arbitration for discipline arises when the parties have negotiated arbitra#ion as the method for deciding just cause discipline in lieu of u ing a civil service or other hearing officer model. Similarly, it makes sense For nor -disciplinary related contractually created rights to be decided through a contractually created arbitration process. Put differently, because ii is the union and employer that negotiate, the disciplinary process and the collectively bargained contractual rights, the union and employer logicaIly negotiate the method for adjudicating those issues —namely, arbitration. A union, on the other hand, does not negotiate statutory or law tort rights for the employees it represents. And white it is true that arbitration seeks to change the forum for deciding disputes but does not extinguish claims, the right to a jury trial is not an insignificant right. Moreover, the Association rightly points out that many of these statutory claims are brought by lawyers on a contingency basis, and pushing these claims into arbitration forum may effectively, if not legally, prevent them from being pursued. Finally, California, through ,A9 51, has expressed a public policy preference against alto +ing employers to condition employrent ou employees entering into mandatory arbitration agreements. While AB 51 continues to be litigated with complex preemption questions at play, the state has clearly expressed its displeasure with employers requiring employees, as a conditi of employment, to submit claims to arbitration. For these reasons, f recommend not accepting the ity's proposal of requiring the Association to waive its members' rights to jury trials for employment related claims. F do recommend that the parties adopt the ity's proposal regarding disciplinary appeals being decided through arbitration rather than through the Los Angeles County Civil Service ommission. It is unusual for a different jurisdiction's civil service commission to decide disciplinary appeals for an employer. Moreover, it is very common for public sector disciplinary FACTF1NDING REPORT AND RECOM M ENDAT I ONS FOR SETTLEMENT - 5 ie 82 of 127 1 2 3 4 5 6 7 S 9 10 11 12 13 14 1� 16 17 is 1 20 21 22 23 24 25 1 26 27 28 appeals to be decided through the arbitration process. The Association provided no reason why this change should not occur. Issue 2: residency Requirement The City proposes a residency requirement with a 100-mile radius for 1) current membe who already reside within 100 mules; and ) those fired after the adoption of the provision. Th( City argues employees who lire over 100 miles away are less likely to respond to the City whet someone gets injured or calls in sick, and that this places a greater barden on employees who ii4 closer to El Segundo. The City posits that this change in the status quo advances its interest of maintaining the safety of residents and businesses by ensw ing employees are not overworked and have a proper opportunity to rest on their days off, The Association responds that this proposal is unduly restrictive, that the cost -of -living within 100 miles of El Segundo is high, that its members are not complaining about any alleged uneven distribution of overtime, that no other agency In the list of comparable agencies used 1 y the parties has a residency requirement, aDd that the City provides no specific incident of a bargaining unit member failing to timely respond to an emergency. ccOmmendatiion I do not reconimend that the parties accept this provision as proposed, although I strongly :commend that the parties consider the concept if it were to be limited only to future employees. Firs[, one compelling factor against the proposal is that no other jurisdiction in the list of j comparable jurisdictions has such a residency requirement, N evertheI ess, the City raises some legitimate concerts about wanting employees to he available for unexpected work shifts, and some other fire agencies do have residency requirements. however, given that the City is proposing a change in the status quo, I believe I FA TFINDfNG KEPORT AND RFC0MMF,NDATIONS FOR SETTLEMENT - 6 , 83 of 127 2 3 4 5 6 7 8 9 10 it 12 13 14 is 16 17 is 19 20 21 22 23 24 25 26 27 29 more specific examples reed to be presented of bargaining unit employees failing to respond to overtime directives before a firm recc)mmendatlon is made to implement sueh a restrictive provision. I the Cily had presented concrete examples, I still would have limited my recommendation so that the residency requirement applies only to prospective employees, current employee who lives within a I00-mile radius should still be able to move outside that radius, and should not have to choose between hislher job and moving outside a I00-mile radius when there was no such Iimitation when he/she took the job. This concern would not exist liar new employees who, upon accepting offers of employment, would already be aware of the resiliency requirement. While I am not rtoornmendi ng this proposal, the Association should be willing to seriously consider further discussions on such a provision for future employees, as it may lessen the load on the current membership and would help address a legitimate concern raised by the city. Issue 3; Across -The -Board Salar.v Increases the parties have been negotiating a three-year contract that would have a terry, from October 2021-July 2023, The City proposes a zero percent increase for October 201-June a 3% increase for Jul}2022-June 2023,' and a 3% increase for July 2023-June 2024. The Association proposes a zero percent increase for October 2021-June 2022, a 5% increase for July The City proposes that any raises would not go into effect until a deal is reach. However, it is corn inon for raises to be retroactively applied when an agreement is reached after the start o f a fiscal year. 1, therefore, recornmend th any negotiated increases start on July 1, 2022 even if the agreement is reached after July 1, 2022. 1 do this mainly because the Association has already agreed to a Me increase for the current fiscal year, 1;A.CTFINDING REPORT AND RECOP.+9:MENDATIONS FOR SETTLEMENT - 7 e84of127 2 4 5 6 7 8 9 10 12 13 14 15 16 17 18 1$ 0 21 22 23 24 5 26 27 28 2022-June 2023, and a 5% increase for July 2.023-June 2024_ The Association farther seeks additional contingent increases dependent on City revenue. The parties agree on a list of comparable agencies to be used in looking, at salaries. The list includes Los Angeles Cat}, Los Angeles County, Manhattan Beach, Redondo Beach, Torrance, Culver City and Sang Monica. The Association's survey of the comparabIc agencies concluded that El Segundo firefighters are 2441 o below the mean, that El Segundo engineers are 11,1 ° o below the mean, and the El Segundo captains are 9 . 8 % below the ni�w, The C ity's survey presented at the, hearing showed that El Segundo firefighters are 3,6 % above the mean, that El Segundo engineers are 5.5% above the mean, and that El Segundo captains are 3.7% above the mean. Huwt ever, on June 27, 202 , the City submitted a revised study showing that E1 Segundo firefighters are 2. 8-1 o below the mean, that E1 Segundo engineers are 4.76% below the mean, and that El Segundo captains are 4.83% below the mean. On July 1. 2022, the City indicated the June 27, 2022 submission had errors and provided a corrceted study that showed firefighters are 3.9 % above the mean, that EI Segundo engineers are 6. 6°o above the mean, and that firefighter captains are 4.3 711/a above the mean. There are multiple reasons for the different figures between the City and the Association. The ,Association argues that even applying the ity's methodology shows that firefighters are 7.$10 below the rnean when one utilizes a Tier 2 employee, expresses the percentage as a percentage of El Segundo compensation required to reach the mean, and corrects for various issues in the City's study. The Association notes that the Im Angeles Area PI-U was 7.9% as of April 2022 and has only increased. The Association also points to the ity's healthy General Fund Reserve. The FACTFIND)NG REPORT AND RECOMMENDATIONS FOR SETTLEMENT - 8 Page 85 of 127 15 1b I 19 20 21 22 23 24 25 26 27 28 Association believes that the City historically has over budgeted expenses and under budgeted revenues, The City responds that its long-term econonfic forecast is troubling. The City depends heavily on hotel tax revenue, and most El Seguudo hotels cater to business travelers. Unlike tourist travel, business travel is still significantly down from pro -pandemic levels. The City alsc motes that in Fiscal Year 2021-2022, the ity's operations and revenues were impacted by the pandemic, that the CARES act funding helped balance the 2021-2022 budget, but that the CARES Act funding is one-time revenue and was used in part to address related pandemic expenses. Moreover, while revenues have increased from the pandemic lows, the City is still worse off in its projected revenues compared to its pre -pandemic expectations. While the City ma]niains a healthy general fund balance, that balance is projected to decreased through the year 2 03 1. This is because the City projects appropriations exceeding revenues in the foreseeable future. For thes reasons, the City argues it is constrained in what economic enhancements it can offer and has already stretched itself to offer a % increase during the life of the agreement. Recommendation I recommend a zero percent increase for October 2021-June 2022, €t 4.5% increase for July 2022-June 2023, and a 4_5% increase for July 2023-June 2024. 1 make this for several Treasons. First, the Mil BA requires me to consider CPI. The CPl has increased at an extremely high pace in the past twelve months. indeed, inflation at its current pace outpaces even the Association's proposal, Also, the MMBA requires the to compare El Segundo + firefighters to firefighters in other jurisdictions. The data supports finding that the highest paid I firefighters in other jurisdictions are paid more than Tier 2 firefighters in El Segundo, and roost firefighters in El Segundo are Tier 2 employees, The Association posits that even accepting the I FACTF1 N 1) 1 NO REPORT AN1) RECOMMENDATIONS FOR SETrLLMENT - q Pa�e 86 of 127 1 3 4 s 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ity's methodology but adjusting for some of its errors shows that the El Segundo rite Hghters are 7.87% below the mean. The City acknowledges that unit members are below lhtc mean but disagrees with the Association's numbers. My recommendation would have El Segundo firefighters approach and possibly surpass the mean {depending, on what the, comparable jurisdiction do in terms cf pay during the terns of [his Agreement and on which paAies' numbers are relied upon) by providing a 9°fl raise over the life of the contract. I also believe it makes sense to concentrate the, most dollars into across-the-board increases. However, I also recognize the City*s financial concerns. CA RES fanding is one-tinrk: money and that City faces an uncertain economic futum post pandemic. The City rightly wants some stability in budgeting its expenses. Wherefore, I am not recommending that the City provide additional compensation increases based on the City's future revenues. Moreover, as discussed below, I am riot recommending any other economic enhancements outside of increases to health insurance, optical, dental and life insurance contributions, My recoinuuendation against other economic enhancements is driven in large part by the ity's concern that it wiil have budget deficits that will lessen its preserves. I Issue 4: Health Insurance Increases The City proposes increasing its contribution to health insurance costs to $1,725 a month f starting on January 1, 2023 and $1,775 a month starting on January 1, 2024. The Association Iproposes a contribution rate of $1,800 starting on January 1, 2023 and $1,850 starting on 11, 2024. The C ity points out that this bargaining unit receives higher health insurance amounts I than other units, and the City wants to level out the amounts it pays across units. The Association altgues that the mean contribution from the comparahle iwisdictions is over $1,800; I the Association also notes that it did not receive an increase in the contribution rate for 202 2. FACTFINDING REPORT AND RECOMMENDATION S FOR SETTLEMENT - 10 Page 87 of 127 1 3 4 5 6 7 8 10 11 12 13 14 15 16 17 1 19 20 21 22 23 24 25 26 27 28 The City responds that the data used by the Association inoludes dental and vision coratributiu a�;_ which axe dis aggregated in El Segundo. The City did not provide figures for hoax much health insurance costs are projected to increase Girt 2023 and 2024. Recommendation: I recommend that the contribution rate be $1,775 for January 1, 2023 and $1,800 for January 1, 2024, I naake this recommendation to both get the Association closer to the mean levei but to also account for the fact that the City disaggregates its dentaI and vision contributions, which suggests that the real figure to get the Association to the mean is lower than $1,850. Issue 5: Increase$, In Maximum Contribution to Optical. Dental & Life Insurance The parties agree on the dollar figure of $184.25 for this issue. The disagreement is over whether the new figure wi11 be implemented on January 1, 2022 (retroactively) or July 1, 2022, l ccoinmendation I recommend wi implementation date of July 1, 2 022 . I do this mainly for administrative ease. Issues 6 & 7; Elimination of EducatiQnnal Pay in Exchange for are Across -The -Board Increase of $1,059.02 per month and l eirrbursement for Fdmational Expenses. The contract currently has two tiers for educational pay. Employees hired before November 2.8, 2015 receive between $211.16 per month to $1,059.02 per month ofpensionable pay depending on their educational level and classification; employees hired after November 29, 2015 receive either $500 per month if they have a BA or $ 00 per month if they have an MA of non -pensionable pay. The Association wants to eliminate this dispwity atnd proposes to eliminate the educational pay in exchange for an across-the-board increase of$1,059.02, a I FACTFIN DINQ REPORT AND RECOMMENDATIONS FOR SETTLEMENT- 11 e 88 of 127 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 This proposal has a yearly cost of $219,901.22 or the cost equivalent of a roughly 2,251o across- the-board salary increase � 1 },941,22/$97,900). The proposal would raise the starting salary in excess of the across-the-board economic impact as it would have a larger impact on new employees which would help attract firefighters to El Segundo. The City responds that it wants to concentrate dollars on base wages and it cannot afford a -salary increase on top of the across- the-board incie--ases that are being negotiated, The Association also proposes allowing for a $2,000 a year reimbursement for educational costs from an accredited institution for course work taken toward a BA or MA degree. The Association proposes this in conjunction with its proposal to eliminate the educational pay as a way to continue encouraging unit members to pursue educational opportunities. l econumndation; 1 recommend maintaining the status quo. As discussed above. I recommended a figure• closer to the Association's proposal on across-the-board raises in hopes of gctfing the El Segundo firefighters closer to the meari for the comparable group_ 1 noted that the City does have Iegitimate financial concerns and that I would not xecommend significant economic enhanccmcnts over and above the across-the-board raises. Because I do not recommend eliminating the educational pay, I also do not recommend the reimbursement proposal as that was tied to the elimination ofthe educational pay. Issue 8. Leaves of Absence Hours Counted As Hours Worked for Qvertime Purposes in, a previous bargaining cycle, the parties bargained for language that excluded leave I time from being counted as hours worked for overtime purposes. The Association points out j none of the comparable j urisdictions has such a provision. In Manhattan Beach, vacation, hol and IOD ante counted as hours worked and in Redondo Beach all paid Ieave except sick time is I FACTFINDIN 0 REPORT AND RE COMMENDATION8 FOR SET`rLEMENT - 12 le 89 of 127 1 2 3 4 5 6 7 8 9 l� it 1 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 counted as hours worked. There was some confusion at the factfindi ng hearing as to whether E'I egundo's practice is to only preclude counting sick time from being countcd as hours work for overtime purposes. Recommendation: 7 recommend clarifying that only sick time should be excluded from being counted as hours worked for }purposes of triggering overtime. Individuais who are asked to work extra hours during periods when they have pre -planned vacations or when there are holidays should not be paid less for the inconvenience of having to work outside their normal shifits. This would also place El Segundo in line with some of the comparable jurisdictions on this point. Issue : Length -of Time Needed to Be In. Acting Skill To Receive Actin; Pay The parties have agreed that a nployees who are assigned to work in higher positions/classifications on a temporary basis shall receive 5% acting pay. The dispute is ovcr how Gong the employee must be acting to receive the pay. The Association proposes an employee in the position for four hours receives the pay; the City responds that the pay should only be triggered if an ernplo ee is assigned the higher work for a full shift. The Association argues that all work should be paid; the City responds that logistical ly it would he difficult to track and pay for work that occurs for only a few hours. Recommendation First, I note that it is unlikely that individuals would be assigned higher duties for less than a shift and so this should not be an issue that adses frequen.tly. Second, ik is important to note that shifts are usually twenty-four hours in length. I can see how tracking assignments for a few hours could be a logistical challenge. However, it should not be as much of challenge to f ACTFIN DING REPORT AND RECOMMENDATION S FOR SETTLEM ENT - 13 e 90 of 127 1 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 17 1S 19 20 21 22 23 24 25 26 27 29 track assignments that last at least twelve, hours. For this reason., I recommend that employees paid the acting pay when they am assigned the work for at least twelve hours, Issue 10, Require Promotional Testing At Least Once Every Two Years The Association proposes that the City commence a testing process for the ranks of Fire Paramedic, Fire Engineer, Fire Captain, and Battalion Chief at least once every two years regardless of available positions. The Association states that th is wil1 ensure that there are always active promotional lists, and it will make the promotional process more efficient. The City ooutiters that this would create unnecessary work when theme are no vacancies to fill. R.econimendation Given the minimum cost of this proposal and the importance of the issue to employees, I recommend adopting this proposal. I age.1 I ; Teanj Ass gnment and Special Assignment Pay The Association proposes team assignment and special assignment pay for multiple assignments. The City opposes these cost items, as it wants to focus on across-the-board increases. Recommendation: 1 do not recommend accepting these proposals. As explained above, 1 believe the parties should focus on across-the-board increases, which is why I recommend the 4 . 5 % across-the- board increases for each of the next two fiscal years. I note that the parties have indicated that there is cleanup language on which they are principally in agreement. i encourage the parties to continue to work on those language issues, I FACTFINDING REPORT AM RECOMMENDATION9 FOR S1r'I FLEMENT - 14 le 91 of 127 1 2 3 4 6 9 10 11 12 13 14 Is 16 17 18 19 20 21 22 2; 24 25 26 7 28 I sincerely hope that these recommendations assist the parties in reaching a negotiated settlement. Date: July 15 , 2022 Najeeb N. Khoury I FA T'FMDING REPO WVANO RECOM M ENDATIONS POP, SETTLEMENT- 15 e 92 of 127 RESOLUTION NO. A RESOLUTION AUTHORIZING IMPLEMENTATION OF THE TERMS OF THE CITY'S LAST, BEST, AND FINAL OFFER TO THE EL SEGUNDO FIREFIGHTERS' ASSOCIATION, IAFF, LOCAL 3682 (ESFA), PURSUANT TO GOVERNMENT CODE SECTION 3505, ET SEQ. The City of El Segundo does resolve as follows: SECTION 1. The City Council finds and declares as follows: A. The City of El Segundo ("City") and the El Segundo Firefighters' Association, IAFF, Local 3682 ("ESFA") have terms and conditions governing the wages, hours and terms and conditions of employment for members of the ESFA bargaining unit. B. The City is required by the Meyers-Milias-Brown Act (Government Code § 3500, et. seq.) to meet and confer in good faith with ESFA regarding wages, hours, and other terms and conditions of employment. C. The City's negotiation team representatives began meeting and conferring with ESFA in November 2021 in an attempt to identify and discuss any impacts of a Brownout of Engine Number 32 for a period of six (6) months and did so in good faith. D. The representatives of the City and ESFA have held eleven (11) meet and confer sessions to identify and discuss any impacts of a Brownout of Engine Number 32 for a period of six (6) months but have not reached agreement. E. On April 25, 2022, the representatives of the City presented the City's last, best, and final offer to ESFA. F. On May 11, 2022, ESFA rejected the City's last, best, and final offer and declared impasse. G. The City Council finds that the City of El Segundo and the El Segundo Firefighters' Association, IAFF, Local 3682 are at impasse in these negotiations. H. On May 31, 2022, ESFA requested a factfinding hearing under Government Code § 3505 and the City and ESFA participated in a factfinding hearing on September 7, 2022. I. The chairperson issued the findings and recommendations on October 3, 2022 and the City made the findings and recommendations publicly available on October 13, 2022. Page 93 of 127 J. The City Council of the City of El Segundo is vested by law with the responsibility for making a final determination regarding wages, hours and other terms and conditions of employment for employees of the City and the City Council is desirous of making such final determination and resolving the impasse. K. If any of the terms of the City's last, best, and final offer, or the application of any provision of said last, best, and final offer to any person or group, are enjoined, stayed, restrained or suspended in any legal or administrative proceeding, then said provision(s) of the last, best, and final offer adopted by this Resolution shall be deemed immediately, automatically and completely suspended and of no further force and effect for any purpose, until such point as the matter is fully and finally adjudicated. SECTION 2. The Council further finds and declares as follows: A. The City Council finds and declares that in accordance with the Meyers- Milias-Brown Act, the City has met and negotiated in good faith with the El Segundo Firefighters' Association, IAFF, Local 3682 for a reasonable period on matters within the scope of representation. B. The City Council finds and declares that the City presented the El Segundo Firefighters' Association, IAFF, Local 3682 with the City's last, best, and final offer. C. The City Council finds and declares that the El Segundo Firefighters' Association, IAFF, Local 3682 rejected the City's last, best, and final offer. D. The City Council finds and declares that the City and the El Segundo Firefighters' Association, IAFF, Local 3682 are at impasse in these negotiations. E. The City Council finds and declares that the City and the El Segundo Firefighters' Association, IAFF, Local 3682 have participated in the factfinding process and the factfinding chairperson issued the findings and recommendations, which the City made publicly available. F. The City Council finds and declares that the terms of the City's last, best, and final offer to the El Segundo Firefighters' Association, IAFF, Local 3682 are hereby approved and adopted. A copy of said last, best, and final offer is attached to this Resolution, labeled "Exhibit A," and is hereby reference. SECTION 3. Severability. If any of the terms of the City's last, best, and final offer, approved and adopted by Section 6 of this Resolution or the application of any provision Page 94 of 127 of said last, best, and final offer to any person or group, are enjoined, stayed, restrained or suspended in any legal or administrative proceeding, then said provision(s) shall be deemed immediately, automatically and completely suspended and of no further force and effect for any purpose, until such legal and/or administrative proceeding is concluded by a final adjudication including exhaustion of any and all appellate proceedings. SECTION 4. Signature Authority. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is directed to attest thereto. SECTION 5. Effective Date. This Resolution will take effect immediately upon adoption and will remain effective unless repealed or superseded. SECTION 6. City Clerk Direction. The City Clerk will certify to the passage and adoption of this Resolution, enter it in the City's book of original Resolutions, and make a record of this action in the meeting's minutes. PASSED AND ADOPTED this 18t" day of October 2022. Drew Boyles, Mayor Page 95 of 127 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 Resolution No. 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 , 2022, 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 Joaquin Vazquez, Assistant City Attorney Page 96 of 127 EXHIBIT A City of El Segundo Last Best and Final Offer to the El Segundo Firefighters' Association Brownout of Engine Number 32 Page 97 of 127 EXHIBIT A Page 98 of 127 CITY OF EL SEGUNDO/FFA IMPACTS NEGOTIATIONS — BROWNING OUT ENGINE 32 APRIL 25, 2022 LAST BEST FINAL OFFER PREAMBLE: During negotiations with the FFA for a successor MOU, the City proposed, as a separate item, to brown -out Engine 32 for a period of six months. The City has met and conferred with the FFA in good faith regarding any reasonable foreseeable impacts of the City's proposal to brown -out Engine 32 for a period of six months. FFA identified two potential impacts on their members. The FFA asserted that browning -out Engine 32 will: (i) negatively affect the safety of its members, and (ii) increase the workload on its members. The City has reviewed all of the FFA's information concerning safety, all of which are speculative in nature, and has determined that its proposal to brown -out Engine 32 for a period of six months does not expose FFA members to increased safety risks. The City has stated, and continues to maintain, that FFA members are expected to adhere to the current safety standards in the Fire Department's policies and procedures (e.g., minimum amount of personnel at structure fires, etc.). The arguments offered by the FFA for the alleged safety concerns are speculative in nature. Concerning the assertion that browning -out Engine 32 will increase the workload for FFA members, particularly as it relates to building inspections, the City expects all Fire Department employees to complete their assigned tasks during their assigned work hours. In the event that FFA members are unable to complete inspections as a result of the browning -out of Engine 32 for a period of six months, the City agrees that FFA members will not be subject to discipline if goals for building inspections are not met. Accordingly, the following constitutes the City's Last, Best and Final offer ("LBFO") to the FFA: (1) Engine 32 will be browned -out for a period of six months effective May 16, 2022 or the City Council's adoption of this LBFO. (2) The fire suppression personnel displaced from this brown -out will work in place of other firefighters, engineers and captains who are on vacation, sick leave, are injured, or in training or filling other department needs. (3) Fire Station 2 will not be closed. Truck 32 and Rescue 32 will remain available to respond to calls for service. (4) FFA members shall not be subject to discipline if the Fire Department is unable to complete the City expected number of building inspections during the six-month period of the brown -out. City staff will assess the impact on the level of service to City residents from the six-month brown -out of Engine 32 and submit a report to the City Council for consideration of further action, if any. The City requests that the FFA respond to this LBFO by Monday, May 2, 2022. Page 1 of 1 Page 99 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Public Hearings Item Number: C.11 TITLE: Resolution Amending a Regulatory Fee to Recover City Costs for Excessive False Alarm Responses RECOMMENDATION: 1. Conduct a public hearing. 2. Adopt a resolution amending a regulatory fee to recover city costs incurred for certain regulatory El Segundo Fire Department ("ESFD") responses. 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The current adopted fee allowed the City to collect ESFD costs after three false alarms, but the proposed amendment will conform with the Ordinance to allow City cost recovery after the first two false alarms. City staff anticipates the Ordinance will cause most alarm system owners to be more responsible in maintaining their systems in proper working order, requiring a lower number of responses. Pursuant to California Constitution article XI1IC, § 1(e)(3), the fees authorized through the Ordinance do not constitute a "tax" as they concern City regulation enforcement and investigation performance associated with a regulatory program. BACKGROUND: California Constitution article XIIIC, § 1(e)(3) exempts from the definition of a "tax," municipal fees imposed to recover the City's regulatory activity costs that is part of a regulatory program. Timely response to reported emergencies is one of the most valuable services provided by the ESFD. Prompt response to fire alarms is a service reasonably expected for the protection and well-being of the entire community, and ESFD's responds to such alarms as reports of emergencies. The City Council has adopted an Ordinance establishing a program regulating fire alarms and enabling the City's cost recovery or reasonable costs incurred in responding to excess fire alarms Page 100 of 127 Adopt resolution to modify fire false alarm fees October 18, 2022 Page 2 of 3 (i.e., more than two false alarms in a calendar year). A false alarm is defined as the activation of an alarm when an emergency does not exist. From 2021 to 2022, the ESFD is seeing an increasing number of false alarms. In 2021, there were 317 false alarm calls and there have been 264 false alarm calls so far in 2022 (January 1- September 1, 2022). To help recover the City's reasonable costs associated with responding to such calls and to encourage alarm system owners to be more responsive in maintaining their systems in proper working order, the proposed resolution would allow the ESFD to charge for third and subsequent responses in the same calendar year at the costs determined by the Master Fee Schedule. Activation due to weather, or to power outages is not considered billable within the scope of this policy. DISCUSSION: ESFD proposes the City Council's adoption of a resolution to align with the recently adopted Ordinance establishing a regulatory program for fire alarms similar to the Police Department's regulatory for burglar alarms. These fees would be implemented to ensure the efficient utilization of ESFD resources. The resolution would modify the existing fire false alarm fee in the master fee schedule to change from three responses without charge to two responses without charge. The fee would be $260 for a 1/2 hour response that includes Fire Captain, Fire Engineer, and Fire Fighter unit costs. The resolution would allow for an annual inflationary increase of this fee as part of the associated increases for the Master Fee Schedule. CITY STRATEGIC PLAN COMPLIANCE: Goal 2: Support Community Safety and Preparedness Objective: El Segundo is a safe and prepared city. Goal 5: Champion Economic Development and Fiscal Sustainability Objective 5B: El Segundo approaches its work in a financially strategic and responsible way. PREPARED BY: Nicole Pesqueira, Fire Marshal REVIEWED BY: Deena Lee, Fire Chief APPROVED BY: Barbara Voss, Deputy City Manager Page 101 of 127 Adopt resolution to modify fire false alarm fees October 18, 2022 Page 3 of 3 ATTACHED SUPPORTING DOCUMENTS: 1. ES - False Fire Alarm Fee Resolution 2. EXHIBIT A TO FEE RESO Page 102 of 127 RESOLUTION NO. A RESOLUTION AMENDING A REGULATORY FEE TO RECOVER CITY COSTS INCURRED FOR CERTAIN REGULATORY EL SEGUNDO FIRE DEPARTMENT REPONSES. The City Council of the city of El Segundo does resolve as follows: SECTION 1. Findings. The City Council finds and declares as follows: A. California Constitution article XI1IC, § 1(e)(3) exempts from the definition of a "tax," municipal fees imposed to recover the City's regulatory activities costs that is party of a regulatory program. California Farm Bureau Federation v. State Water Resources Control Board (2011) 51 CalAth 421, 438. Here, the City Council has adopted an ordinance establishing a regulatory, false fire alarm program that enables the City's imposition of a cost -recovery fee via resolution, pursuant to El Segundo Municipal Code ("ESMC") § 13-22-5. This fee allows the City to recovery its costs incurred by the El Segundo Fire Department as part of such regulatory program. B. The City Council may establish fees for services under various provisions of California law including, without limitation, Business & Professions Code § 16000; Government Code §§ 54344, 65104, 65909.5, 65943, 66013, 66014, 66451.2; and Health & Safety Code §§ 17951, 17980.1, and 19852. C. The City Council seeks to modify a previously adopted regulatory, cost recovery fee through this Resolution, and such fee was included in the "Cost of Services Study" by Revenue & Cost Specialists (May 2022). D. Pursuant to Government Code § 66016, the City made data available regarding the cost, or estimated cost, of providing certain municipal services for the proposed. E. On October 18, 2022, the City Council heard public testimony and considered evidence in a public hearing held and noticed in accordance with Government Code §§ 66016 and 66018. F. After careful consideration, including a review of the documentary and testimonial evidence submitted during the public hearing, the City Council finds that the user fees adopted by this Resolution are in the public interest to recover the City's costs for certain municipal services. SECTION 2. Approval; Master Fee Schedule; Regulations. Page 103 of 127 A. The City Council approves the regulatory, cost -recovery fee of $520 per hour, pursuant to ESMC § 13-22-5, based upon the cost information set forth in Exhibit "A," which is attached and incorporated by reference. B. Unless otherwise revised, the fees established by this Resolution will be automatically adjusted by the City Manager on an annual basis on July 1 of each year by applying the percent change of the Los Angeles Area of Consumer Price Index for All Urban Consumers for the prior 12-month period ending on April 30 to the City's fees. The first fee adjustment cannot be made before a minimum of ten months after the effective date of this Resolution. C. The City Manager, or designee, may establish policies and procedures as necessary to carry out this Resolution's provisions. SECTION 3. Environmental Review. Pursuant to the California Environmental Quality Act ("CEQA") and the CEQA Guidelines, the actions proposed in this Resolution are not subject to further review under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq.; "CEQA") for the following reasons: (1) they will not result in a direct or reasonably foreseeable indirect physical change in the environment (14 Cal. Code Regs. § 15060(c)(2)); and (2) there is no possibility that the actions may have a significant effect on the environment (14 Cal. Code Regs. § 15061(b)(3)). SECTION 4. Severability. 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 5. Signature Authority. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is directed to attest thereto. SECTION 6. Effective Date. This Resolution will take effect upon adoption the effective date of Ordinance No. and will remain effective unless repealed or superseded. SECTION 7. City Clerk Direction. The City Clerk will certify to the passage and adoption of this Resolution, enter it in the City's book of original Resolutions, and make a record of this action in the meeting's minutes. 2022. PASSED, APPROVED AND ADOPTED this day of Drew Boyles, Mayor Page 104 of 127 ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES 1 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 Resolution No. was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the day of 2022, 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 Joaquin Vazquez, Deputy City Attorney Page 105 of 127 EXHIBIT "A" FEE INFORMATION Page 106 of 127 CITY OF EL SEGUNDO COST DETAIL WORKSHEET FY 2021-22 SERVICE REFERENCE NO. FIRE FALSE ALARM RESPONSE FR-040 NOTE TOTAL UNITS Unit Costs are an Average of Total Units 102 DEPARTMENT POSITION TYPE UNIT TIME UNIT COST ANN. UNITS TOTAL COST FIRE SUPPRESSION FIRE CAPTAIN 0.51 $109.38 102 $11,157 FIRE SUPPRESSION FIRE ENGINEER 0.51 $87.58 102 $8,933 FIRE SUPPRESSION FIRE FIGHTER 0.49 $62.74 102 $6,399 TYPE SUBTOTAL 1.51 $259.70 $26,489 TOTALS 1.51 $259.70 $26,489 May 24, 2022 Page 107 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Staff Presentations Item Number: D.12 TITLE: Urho Saari Swim Stadium ("The Plunge") Project RECOMMENDATION: 1. Authorize modifications to the conceptual design of "The Plunge" project which was previously presented to the City Council in June 1, 2021. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: Budgeted Amount: $2,500,000 plus $2,500,710 (Chevron Contribution - $500,000, L.A. Chargers Headquarters Agreement - $2,000,000, $710 - Interest), for a total of $5,000,710 Current Balance: $4,152,672 ($848,038 has been encumbered for design) Additional Appropriation: None Account Number(s): 01-400-8186-8236 (Plunge Rehabilitation 2020) & 702-233-5101- 5418 (Trust Fund for Plunge Rehab Reserve) Approximately $10.7M is expected to be available for this project in FY 2025-2026 as follows: • $4,152,672 - Current balance • $4,500,000 - City General Fund Budget ($1,500,000 per year for three years - FY 2023-2024 through FY 2025-2026). • $1,000,000 - L.A. Chargers Headquarters (Ordinance #1631) - $2,000,000 has been paid to date and is included in the current balance above. • $1,000,000 - Provided by ESUSD (Agreement 5586) Estimated Operation & Maintenance (including personnel and utilities): $200,000 per year Page 108 of 127 Urho Saari Swim Stadium ("The Plunge") Project October 18, 2022 Page 2 of 3 BACKGROUND: In March 2022, the City Council authorized the City Manager to execute a Professional Services Agreement with IBI Group for $765,000, plus $75,000 for design related contingencies, for the architectural and engineering design of the Urho Saari Swim Stadium project. The City Council also authorized the City Manager to execute a Professional Services Agreement with Westberg White for $75,000 to provide advising services as needed for the preparation of the design. The design commenced in May 2022 after the Professional Services Agreement was fully executed, and IBI Group prepared and submitted the following five technical reports on the stadium: 1. Seismic Evaluation Report 2. Phase I Environmental Site Assessment Report 3. Mechanical, Electrical, Plumbing & Technology (MEPT) Concept Report 4. Hazardous Building Material Survey Report 5. Historical Resource Evaluation Report DISCUSSION: Based on the findings from the initial investigations documented in these reports and further analysis, including interpretion of the currently adopted California Building Code, it was determined that the conceptual design as previously presented to the City Council in June 2021 would have to be modified as follows: • Two lifts (elevators) have to be added to meet the American Disability Act (ADA) requirements. • The restrooms and the entrance lobby on the first floor need to be modified as a result of adding the two lifts. • The entrance facade of the building needs to be saved due to the historical nature of the facility. • Fire Alarm System to be added, per Fire Marshall. • A room needs to be added to accommodate the IT -related components. • An exit door needs to be added per Fire Marshall. • The IBI Group is recommending a modified lay -out for the locker room s/showers/restrooms which would facilitate better circulation. The previous cost estimate for this project was $9.2M. The revised current estimate is $11.6M. Most of the difference in the estimates is due to the fact that the previous estimate did not include the cost for the "Environmental Demolition / Removal of Hazardous Materials", the two lifts and the Fire Alarm System. Once these modifications are approved by the City Council, it is anticipated that the design of the project will be completed by the summer of 2023. Page 109 of 127 Urho Saari Swim Stadium ("The Plunge") Project October 18, 2022 Page 3 of 3 Staff met with the Aquatics Sub -Committee of Recreation and Parks Commission on September 28th, 2022, and explained these modifications. The consensus of the Sub - Committee was that these modifications were necessary and acceptable. The presentation herein will provide the details of these modifications to the June 2021 conceptual design, estimated cost impacts, and updated project schedule. Subsequently, when staff returns to the City Council for adoption of the final design drawings, and the construction specification and documents and request to advertise the project for construction, a fundraising strategy will also be presented to the City Council for consideration and approval to secure additional needed funds for construction and construction inspection/administration. It is to be noted that the annual cost of Operation & Maintenance (including personnel and utilities) of "The Plunge" has been approximately $200,000 per year. This number will most likely be changed based on new designed equipment. Goal 4: Develop and Maintain Quality Infrastructure and Technology Objective 4A: El Segundo's physical infrastructure supports an inviting and safe community. PREPARED BY: Cheryl Ebert, Senior Civil Engineer REVIEWED BY: Elias Sassoon, Public Works Director APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: None Page 110 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Staff Presentations Item Number: D.13 TITLE: FY 2021-2022 Year -End Financial Report RECOMMENDATION: 1. Receive and file the unaudited FY 2021-2022 Year -End Financial Report. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: None BACKGROUND: Staff has reviewed all revenues and expenditures in the General Fund, as well as all revenues and expenses in the Enterprise Funds and Internal Service Funds for FY 2021-2022. DISCUSSION: A detailed report is attached that provides discussion on how the General Fund performed with regards to both revenues and expenditures. The report also discusses the year-end performance of the various Enterprise Funds, Internal Service Funds, Debt Fund, and the Senior Housing Fund. CITY STRATEGIC PLAN COMPLIANCE: Goal 5: Champion Economic Development and Fiscal Sustainability Objective 513: El Segundo approaches its work in a financially strategic and responsible way. Page 111 of 127 FY 2021-2022 Year -End unaudited Financial Report October 18, 2022 Page 2 of 2 PREPARED BY: Joseph Lillio, Chief Financial Officer REVIEWED BY: Joseph Lillio, Chief Financial Officer APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: Fiscal Year -End 2021-2022 Financial Review Page 112 of 127 MEMORANDUM CrrV OF ELSD To: Honorable Mayor and Members of City Council From: Darrell George, City Manager & Joseph Lillio, Chief Financial Officer Date: October 18, 2022 Subject: Unaudited Fiscal Year -End 2021-2022 Financial Review F I NAN C E D E P A R T M E N T 350 Main Street I El Segundo, California 90245 310-524-2300 1 elsegundo.org Page 113 of 127 Unaudited Fiscal Year -End 2021-2022 Financial Review This detailed report provides discussion on how the General Fund performed during the Fiscal Year 2021-2022, with regards to both revenues and expenditures. The report also discusses the year-end performance of the various Enterprise Funds, Internal Service Funds, Debt Fund, and the Senior Housing Fund. Staff has reviewed all revenues and expenditures in the General Fund, as well as revenue and expenses in the Enterprise Funds and Internal Service Fund for Fiscal Year 2021- 2022. Goal 5 of the City of El Segundo's Strategic Plan is to Champion Economic Development and Fiscal Sustainability. The following report supports both this Strategic Plan goal, as well as its corresponding Objective number 513: El Segundo approaches its work in a financially strategic and responsible way. Background The Adopted Operating Budget for Fiscal Year (FY) 2021-2022 was a balanced budget. With this budget, the City began the first full twelve months on the July 1 — June 30 budget cycle. Prior to this the City operated on the Federal fiscal year cycle, October 1 — September 1. FY 2020-21 was an abbreviated nine -month budget cycle from October 1, 2020 to June 30, 2021. This allowed for the successful switch to a full 12 months from July 1, 2021 to June 30, 2022. COVID-19 During the development of the FY 2021-22 Budget (January 2021 — May 2021), COVID- 19 still posed a significant threat to the safety and welfare of society, as well as a threat to the economy. As a result, the City approved a budget that anticipated a slow return to normal economic activity. As FY 2021-22 progressed, we learned more about COVID- 19 and became better equipped as a society to address the safety and welfare challenges this pandemic posed which allowed for businesses to fully open again. Towards the beginning of calendar year 2022, the business and leisure traveler slowly began to return. During the last two months of FY 2021-22, most of the City's main General Fund revenues were back to pre -pandemic levels. Extensive Budget Preparation & Discussion Process The FY 2021-2022 budget preparation process began at the staff level in late 2020. Public discussion with City Council started with the April 20, 2021 Strategic Planning Session, followed by the FY 2020-2021 General Fund Mid -Year Budget Update presentation later the same evening. There was further budget discussion with City Council during the May 4, 2021 Budget Study Session. The FY 2021-22 Budget was adopted on June 15, 2021. 2 Page 114 of 127 Due to the impact of COVID-19 (mainly the loss of hotel Transient Occupancy Tax revenues), the Proposed FY 2021-2022 General Fund Budget preparation process began with a $9 million deficit. Staff worked diligently to strategize a plan to close this gap. Through discussions with City Council during the Strategic Planning and Budget Study sessions, the following approach was developed to close this gap: • One-time use of OPEB Trust fund: $2,400,000 0 Currently 58% funded and there are no new contributions to the trust required 0 Actuary assumption of $1,850,000 investment earnings for FY 2020-21 o $6,800,000 in actual investment earnings through May 31, 2021 • One-time use of General Fund Balance: $2,025,125 0 After fully funding the 20% policy reserve • Freeze 23.5 vacant positions: $2,174,875 0 12.5 positions frozen for 12 months and 11 positions frozen less than 12 months • Reduction to Operations & Maintenance items: $1,500,000 • Reduce Equipment Replacement fund contribution: $900,000 Although this approach is not ideal, it does allow the City to move forward with limited service and infrastructure maintenance impacts. This approach also complies with the City's Financial Policies. General Fund: Revenues Adopted vs. Year -End Actuals (Unaudited) The table and charts below reflect the General Fund revenues that were included with the adopted Fiscal Year 2021-2022 budget and the year-end unaudited actuals. The year- end unaudited actuals came in slightly higher than the revenue that was anticipated with the adoption of the budget. The year-end unaudited actuals were $8.4 million higher than the original FY 2021-2022 revenues. This equates to a 11.2% increase in revenues compared to the adopted budget. 3 Page 115 of 127 FY 2021-22 General Fund Revenues Adonted vs_ Year End Actuals (Unaudited) No. 1 General Fund Revenues Sales Tax FY2021-2022i Adopted $12,250,000 Unaudited Actuals $13,374,232 Over/(Under) BudgetRevenues $ 1,124,232 Received 109% 2 Business License Tax $11,750,000 $11,616,606 $(133,394) 99% 3 Property Tax $9,882,525 $10,008,587 $126,062 101 % 4 Transient Occupancy Tax $8,420,000 $12,267,534 $3,847,534 146% 5 Chevron Tax Reso Agree $6,600,000 $7,322,517 $722,517 111 % 6 Utility Users Tax $6,289,500 $8,541,409 $2,251,909 136% 7 Charges for Service $4,755,511 $5,286,054 $530,543 111 % 8 Transfers -in $4,013,235 $2,011,733 $(2,001,502) 50% 9 Franchise Tax $3,000,000 $3,853,865 $853,865 128% 10 Other Revenues $2,817,770 $2,606,891 $(210,879) 93% 11 Intergovern Revenues $2,178,909 $2,164,809 $(14,100) 99% 12 License & Permits $1,825,000 $1,910,715 $85,715 105% 13 Interest & Rentals $726,250 $1,895,153 $1,168,903 261% 14 Fines & Forfeitures $294,000 $373,425 $79,425 127% Total General Fund Revenue $74,802,700 $83,233,531 $8,430,831 111.27% FY 2021-22 General Fund Revenues Adopted vs. Year End Actuals (Unaudited) $14,000,000.00 $12,000,000.00 $10,000,000.00 $8,000,000.00 $6,000,000.00 $4,000,000.00 $2,000,000.00 L d ■ ■ J a,\e� ��� e�� ��� +� ��� ��c, 5��� ��� �J�� ��6, Q6, �'p g J �oQ pow �a J5 ,roc c nor t� Q- �0 ° ZCI Q \��� �o P \� CO ��a Ors o��Ge�S \��_e, � 4r ■ FY2021-2022 Adopted Revenues ■ FY 2021-2022 Unaudited Actuals General Fund: Revenues Adopted vs. Year -End Actuals (Unaudited), cont'd Total General Fund unaudited revenues ended the fiscal year $8,430,831 higher than the adopted budget. As noted in the table above, the major variances in estimates compared to the year-end actuals in revenues are as follows: 1. Business License Taxes:-$133,394 (-1 %); very close to budget. 4 Page 116 of 127 2. Sales & Use Taxes: +$1,124,232 (+9%), as COVID-19 restrictions continued to lift, local business and industry sales increased in tandem, as well as inflation driving the price of taxable goods higher. Also, the higher price for gasoline significantly contributed to the increased sales tax revenue. 3. Property Taxes: +126,062 (+1 %), driven by the Prop. 13 increases in property values, and a change in ownership of properties which reassesses the property at current market value. 4. Transient Occupancy Tax: +3,847,534 (+46%), as COVID-19 restrictions continued to lift, travel and tourism increased in tandem. Both the occupancy levels and room rates steadily increased during the second half of FY 2022. TOT is still down from the pre-COVID level of $15 million per year. 5. Chevron Tax Resolution Agreement: Year-end revenue was up by $722,517 (+11 %) 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). 6. UUT: +$2,251,909 (+36%), mainly due to large increases incommodity prices that had a direct impact on electric/gas/and water rates. The Electric Utility User Tax and Cogenerated Electric/Chevron Utility User Tax had the largest increases. 7. Charges for Services: +$530,543 (+11 %), contributed by an increase in Wiseburn Drop -In Programs and Facility Reservation Fees, as well as returns to several other programs that had been suspended or modified with previous COVID-19 restrictions. 8. Transfers -in: the Fiscal Year 2021-2022 adopted budget included an anticipated $2 million transfer from the OPEB Trust, which was not necessary to implement due to General Fund revenues increasing higher than anticipated. 9. Franchise Fees: +$853,865 (+28%), this revenue source is primarily made up of the annual payment received by Southern California Edison (SCE) and The Gas Co. The actual payments were higher than expected due to large increases in commodity prices, as well as the rates charged by the utility providers. 10.Other Revenues: Year-end revenue was down by $210,879 (-7%) due to a decrease in developer contributions. 11.Intergovernmental:-$14,100 (-1%) came in very close to budget, with revenue from Motor Vehicle in Lieu and Vehicle License Fee (VLF) Swap Fees were slightly lower than anticipated. 5 Page 117 of 127 12. Licenses and Permits: +$85,715 (+5%), due to increases in both Building Permits and Street permits. 13.Interest Earnings & Rental Income: +$1,168,903 (+161%), driven by increases in interest on investments primarily due to the increase in interest rates by the Fed. 14. Fines & Forfeitures: +$79,425 (+27%), mainly due to increases in Parking Fines. Total General Fund Revenue, Fiscal Year 2017-2018 Through 2021 -2022 The below graph depicts the total General Revenue the City received by fiscal year from FY 2017-2018 through FY 2021-22, resulting in five years of comparative data. It is evident the severe negative impacts that COVID-19 and the related economic shut down had on the City of El Segundo's General Fund revenues from Fiscal Year 2019- 2020 through Fiscal Year 2020-2021. However, unaudited figures for Fiscal Year 2021-2022 suggest a significant upward trend of revenue recovery. Unaudited actual revenues for the General Fund not only imply to have exceeded the budget, but also to exceed pre -pandemic totals from Fiscal Year 2017-2018. Total General Fund Revenue: Last 5 Years $85,000,000.00 $80,20 ,257.00 $80,000,000.00 $76,607 906.00 $75,000,000.00 $83,233,531.00 $70,000,000.00 $72,503,400.00 $61,697 273.0 $65,000,000.00 $60,000,000.00 2018 2020 2021 The following revenues continue to perform as the highest sources of General Fund Revenue: Business License Tax Utility Users Tax Franchise Tax 0 Transient Occupancy Tax Property Tax Sales Tax Page 118 of 127 Fiscal Year -End 2021 -2022 General Fund Appropriations Adopted General Fund Appropriations for FY 2021-2022 were $77,651,553, and the unaudited year-end expenditure actuals were $77,097,841. The adopted budget was close to the year-end actuals with variance of less than 1 %. The table below illustrates a comparison of the adopted budget to unaudited actuals, by department: General Fund Appropriations No Department FY 2021-22 Adopted Budget FY 2021-22 Unaudited Actuals Variance ($) % of Budget 1 Police $19,436,175 18,859,873 $576,302 97% 2 Fire 13,782,667 14,495,035 (712,368) 105% 3 Transfers Out 10,538,908 11,340,949 802,041 108% 4 Public Works 8,695,404 8,617,357 78,047 99% 5 Nondepartment 5,904,993 6,189,736 284,743 105% 6 Rec/Park/Library 5,878,231 4,907,558 970,673 83% 7 Dev Services 3,098,785 2,630,101 468,684 85% 8 Information Tech 3,023,930 2,665,027 358,903 88% 9 City Manager 2,453,282 2,326,656 126,626 95% 10 Finance/Treasury 2,412,820 2,235,094 177,726 93% 11 Human Resources 977,063 1,240,818 (263,755) 127% 12 City Attorney 561,950 752,602 (190,652) 134% 13 City Clerk 530,749 453,884 76,865 86% 14 City Council 356,596 335,424 21,172 94% 15 COVID-19 Response 0 463,649 (463,649) N/A 16 Social Justice Protests 0 89 (89) N/A 17 Total $77,651,553 $77,513,852 137,701 99.8% As shown in the table above, the major changes to estimates in expenditures are as follows (+ variance is a budgetary savings and (xx,xxx) is a budgetary overage): 1. Police: a decrease in salaries, benefits, and overtime due to position vacancies. 2. Fire: an increase in overtime. 3. Transfers Out: this includes the payment for the Pension Obligations Bonds (POBs) payment, transfer out to the CIP Fund (Fund 301) for capital projects, and a transfer out to the Solid Waste Fund.(Fund 505). The transfer out to the Solid Waste Fund to cover a deficit fund balance due to a continued subsidy for residential trash and a transfer for a CIP project were brought to the City Council during FY 2021-22 and were not originally included in the adopted budget. 7 Page 119 of 127 4. Public Works: a decrease in salaries and benefits due to position vacancies. 5. Non -departmental: over budget, due to retiree health insurance increasing as a result of additional retirements from the City that were not anticipated for in the budget. 6. Community Services (now Recreation, Park and Library): the Parks division budget was removed for this Fiscal Year as services were moved to Public Works. While expenses under Parks were incurred, they were heavily offset by the reduction of the overall department's budget. This reduction also offset the Recreation division, which, too, came in under budget. The Library division was slightly under budget. Many programs were not fully implemented due to COVID restrictions for part of the year. There were also several vacancies resulting in a savings to salaries and benefits. 7. Development Services: a decrease in professional services and in salaries, benefits, and overtime due to position vacancies, particularly in the Planning division. 8. Information Technology: under budget due to position vacancies and a reduction of contracted services expenses. 9. City Manager: slightly under budget, mainly due to reductions in contracted services and a vacancy for part of the year. 10. Finance & Treasury: a decrease in salaries and benefits due to position vacancies. 11. Human Resources: an increase in personnel investigations, litigation costs, and claims. 12. City Attorney: over budget, mainly due to an increase in legal counsel activities related to personnel claims and lawsuits, general litigation, and personnel investigations. 13. City Clerk: under budget due to a decrease in professional services, contracted services, and advertising expenditures. 14. City Council: slightly under budget due to a decrease in dues and subscriptions, advertising, and contracted services. 15.COVID-19 Response: These costs were tracked separately in order to claim reimbursement from FEMA for the COVID related activities. While this activity did come in over budget, the City continues to file several claims with FEMA with the 0 Page 120 of 127 intent of being reimbursed up to 100% for the COVID related expenditures. 16. Social Justice Protests: Year-end expenditures are minimal and limited to a single staffing expense from 2021. This expenditure will not be eligible for either FEMA or State of California reimbursement. Fiscal Year End General Fund Results General Fund Balance for Fiscal Year -End 2021-22 & FY 2022-23 Year-end estimate Actuals (Unaudited) Beginning Unassigned Fund Balance at June 30, 2021 (based on FY 2020-2021 audited CAFR) Plus revenues for FY 2021-2022 Less unaudited year-end expenditures for FY 2021-2022 (includes transfers out) Ending Fund Balance at June 30, 2022 $ 27,898,675 $ 27,898,675 $ 75,207,165 $ 83,233,531 $ (79,244,524) $ (77,513,852) $ 23,861,316 $ 33,618,354 Plus estimated revenues for FY 2022-2023 Less estimated expenditures for FY 2022-2023 Estimated Ending Unassigned Fund Balance at June 30, 2022 $ 81,750,522 $ 81,750,522 $ (85,941,128) $ (85,941,128) $19,670,710 $ 29,427,748 20% General Fund Reserve Unassigned reserves for FY 2022-2023 $(17,188,225) $ (17,188,225) $ 2,482,485 $ 12,239,493 The economic recovery resulting from the end of the pandemic, coupled with rising inflation have resulted in a strong recovery for the City's General Fund revenues for FY 2021 -22. The adopted budget for FY 2021 -22 had a slow economic return and low inflation factored into the assumptions. While inflation is not good for the consumer, it does have a positive impact on government agencies revenues. 0 Page 121 of 127 The additional General Fund reserves that exceed the Council's 20% reserve policywill be discussed during the mid -year budget review in February 2023. Economic Uncertainty Reserve Fiscal Year FY 2021-22 FY 2022-23 Reserve Balance $1,900,004 $2,000,004 Reserve Policy $2,000,000 $2,000,000 Reserve Deficit ($99,996) $4 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 Mitigation Fees which began in February 2006. The General Fund does not fund the debt service. The expenses were down compared to the adopted budget due to the principal and interest actual expenses coming in lower than anticipated. Revenues from traffic mitigation funds, which are the source of revenue for the debt service payment, were lower than the budgeted revenue. Debt Service Fund Revenues Expenses FY 2021-22 Budget $360,000.00 $545,000.00 FY 2021-22 Actuals (unaudited) $165,724.28 $526,383.22 Variance ($194,275.72) $18,616.78 ENTERPRISE FUNDS The decrease in water revenues for both Water Utility and Wastewater (Sewer) funds is mainly due to low interest rates, resulting in associated investment revenue coming in lower than anticipated. However, potable water sales (Water Utility), and miscellaneous revenue (Water Utility and Wastewater) exceeded revenue expectations. Both Water Utility and Wastewater expenses were under budget. The Water Utility Fund 10 Page 122 of 127 expenses decreased for both contractual services and repair/maintenance services for pending capital projects, while the Wastewater Fund had substantially less expenses related to repairs and maintenance, and contracted services than anticipated. Water Fund Revenues Expenses FY 2021-22 Budget $35,735,911.00 $31,314,039.00 FY 2021-22 Actuals (unaudited) $35,160,549.77 $30,994,155.59 variance ($575,361.23) $319,883.41 Wastewater Fund Revenues Expenses FY 2021-22 Budget $5,533,582.00 $6,520,356.00 FY 2021-22 Actuals (unaudited) $4,729,064.37 $4,166,019.92 variance ($804,517.63) $2,354,336.08 INTERNAL SERVICE FUNDS General Liability Fund revenues exceeded budget expectations, due in part to the recovery of claims paid. Expenses were under budget due to low operations expenditures, and a decreased amount attributed to claims expenses than anticipated. The claims recovery is the highest it has been in the past twenty years. This is a direct result of Council approving the Risk Manager position in FY 2020-21 and having it filled during FY 2021-22. Workers' Compensation Fund revenues were higher than expected, due to recovery of claims paid. The expenses were down from the budgeted amount, due to a decrease in expenditures related to insurance and bonds, and claims expenses. The claims expense is the lowest in seven years. General Liability Fund Revenues Expenses FY 2021-22 Budget $3,030,000.00 $3,194,306.00 FY 2021-22 Actuals (unaudited) $3,275,665.74 $2,642,267.45 variance $245,665.74 $552,038.55 Workers' Compensation Fund Revenues Expenses FY 2021-22 Budget $3,125,374 $3,490,975 FY 2021-22 Actuals (unaudited) 3,705,062 $2,824,738 variance $579,688 $666,237 11 Page 123 of 127 SENIOR HOUSING FUND In 1986, the City constructed a 97-unit senior housing project, Park Vista. The City continues to own and maintain Park Vista. The property is overseen by the Senior Citizen Housing Corporation Board and managed by a third -party property management firm, The Cadman Group. The decrease in actual revenue compared to the projected revenue was caused by interest rate on the reserve balance of $1 million going down. Expenses related to the fund included work on capital improvements, for which the 2020-2021 budget marked $60,00; as well as legal counsel and part-time personnel. Senior Housing Fund Revenues Expenses FY 2021-22 Budget $20,000.00 $75,313.00 FY 2021-22 Actuals (unaudited) $3,313.26 $46,149.17 variance ($16,687) $29,164 OTHER FUNDS The Adopted FY 2021-2022 Citywide Budget also included a number of other Special Revenue Funds and Proprietary Funds not included in this unaudited year-end update. These funds will be included in the City's official FY 2021-2022 Annual Financial Report which will be presented to City Council in December 2022. CONCLUSION: Balancing the FY 2021-2022 Budget was a major challenge since the fiscal year operated under a radically different scenario from previous fiscal years. While the organization was able to make the necessary adjustments to ensure that the General Fund and other major Funds ended the year in the black, considerable financial difficulties remain as the cost of providing services rise and some 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. Expenditures on employee retirement benefits will continue to rise as CalPERS continues to phase in a lower discount rate and a lower their investment risk tolerance for the CalPERS portfolio. In addition, medical premiums are seeing significant increases for 2023. Other budgetary pressures are the rising inflationary pressures on goods and services purchased by the City and the rising costs of construction materials. 12 Page 124 of 127 {.,rVoy City Council Agenda Statement ELSEGUNDO Meeting Date: October 18, 2022 Agenda Heading: Staff Presentations Item Number: D.14 TITLE: Extension of License Agreements with El Segundo Youth Sports Organizations RECOMMENDATION: 1. Authorize the City Manager to extend the License Agreements with each El Segundo Youth Sports Organization identified in the Youth Sports Council Athletic Field/ Facility Use and Allocation Policy for the remainder of FY 22-23. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: Total annual revenue from the license agreements is estimated to be $24,000, which has been included in the adopted 22-23 budget. BACKGROUND: The Recreation and Parks Fee Analysis Task Force was created on September 18, 2012 and was tasked with analyzing and recommending fees associated with programs and services offered throughout the Recreation Division, with cost recovery and sustainability as key priorities. The Task Force recommended that the eight El Segundo Youth Sports Organizations identified in the Youth Sports Council Athletic Field/Facility Use and Allocation Policy pay an annual fee of $10 per resident player and $30 per non-resident player within each youth sports organization based on their primary season roster, which helps to cover the City's costs. The City Council approved the fees on May 20, 2014. The license agreements with each Youth Sports Organization were intended to provide scheduled field space at George Brett, Campus El Segundo and Richmond Street fields to specific sports organizations for the purpose of operating sports programs. The City also reserves the right to offer other fields if needed and can terminate the license agreements without cause. Page 125 of 127 Extension of License Agreements with El Segundo Youth Sports Organizations October 18, 2022 Page 2 of 3 The original license agreements with each Youth Sports Organization were approved by City Council on February 17, 2015 for a term of three years. At its September 4, 2018 meeting, City Council approved an amendment to the Youth Sports Organization license agreements for another three-year term. On March 16, 2021, City Council approved one-year extension for FY 20-21. Finally, on February 15, 2022, City Council approved extending the license agreements for the Youth Sports Council Organizations for FY 21-22. DISCUSSION: City staff recommends City Council approve amending the license agreements for the remainder of FY 22-23 for each Youth Sports Organization identified in the Youth Sports Council Athletic Field/Facility Use and Allocation Policy. This amendment will allow each Youth Sports Organization to continue using the fields and facilities while fees and the Youth Sports Council Athletic Field/Facility Use and Allocation Policy are reviewed and possibly revised. Fees did not increase for the Youth Sports Organizations in 21-22. City staff plans to schedule a meeting with each Youth Sports Organization in January 2023 to discuss fee increases. Staff is in the process of scheduling a joint meeting between the Recreation and Parks Commission and the Youth Sports Organization to discuss revising the Youth Sports Council Athletic Field/ Facility Use and Allocation Policy. In May 2023, staff will return to City Council with a recommendation for FY 23-24. CITY STRATEGIC PLAN COMPLIANCE: Goal 1: Enhance Customer Service, Diversity, Inclusion and Communication Objective 1A: El Segundo provides unparalleled service to all customers. Objective 1 B: El Segundo's engagement with the community ensures excellence. Goal 5: Champion Economic Development and Fiscal Sustainability Objective 5B: El Segundo approaches its work in a financially strategic and responsible way. PREPARED BY: Arecia Hester, Recreation Superintendent REVIEWED BY: Aly Mancini, Recreation, Parks and Library Director APPROVED BY: Barbara Voss, Deputy City Manager Page 126 of 127 Extension of License Agreements with El Segundo Youth Sports Organizations October 18, 2022 Page 3 of 3 ATTACHED SUPPORTING DOCUMENTS: None Page 127 of 127