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2026-02-03 CC Agenda Packet1 AGENDA EL SEGUNDO CITY COUNCIL REGULAR MEETING TUESDAY, FEBRUARY 3, 2026 4:45 PM CLOSED SESSION 6:00 PM OPEN SESSION CITY COUNCIL CHAMBER 350 MAIN STREET, EL SEGUNDO, CA 90245 Chris Pimentel, Mayor Ryan W. Baldino, Mayor Pro Tem Drew Boyles, Council Member Lance Giroux, Council Member Michelle Keldorf, Council Member Susan Truax, City Clerk Executive Team Darrell George, City Manager Barbara Voss, Deputy City Manager Saul Rodriguez, Police Chief Michael Allen, Community Development Dir. Aly Mancini, Recreation, Parks & Library Dir. Todd Selby, Interim IT Director Mark Hensley, City Attorney Paul Chung, CFO/City Treasurer Ryan Allee, 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.” Page 1 of 99 2 The City Council, with certain statutory exceptions, can only act 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. REASONABLE ACCOMMODATIONS: In compliance with the Americans with Disabilities Act and Government Code Section 54953(g), the City Council has adopted a reasonable accommodation policy to swiftly resolve accommodation requests. The policy can also be found on the City’s website at https://www.elsegundo.org/government/departments/city-clerk. Please contact the City Clerk’s Office at (310) 524-2308 to make an accommodation request or to obtain a copy of the policy. Page 2 of 99 3 4:45 PM CLOSED SESSION – CALL TO ORDER / ROLL CALL PUBLIC COMMUNICATION – (RELATED TO CITY BUSINESS ONLY –UP-TO 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 – ANTICIPATED LITIGATION Threats to Significant Exposure to Litigation Pursuant to (Government Code §54956.9(d)(2) or (d)(3)): -1 Matter Claim No. 25-190377 Claimant: Benjamin Mason (minor); Philip Mason (guardian) CONFERENCE WITH CITY’S LABOR NEGOTIATOR (GOV’T CODE §54957.6): -1- MATTER(S) Employee Organizations: Supervisory Professional Employee Association (SPEA). Representative: City Manager, Darrell George, Human Resources Director, Rebecca Redyk, and Alex Volberding. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (GOV’T CODE §54956.8): - 1- MATTER(S) Covenant Restrictions and Easements Owned by Chevron, USA Throughout the City of El SegundoCity of El Segundo Property Negotiator - Darrell George, City Manager Chevron, USA Property Negotiator - Todd Littleworth, Senior Counsel 6:00 PM – CONVENE OPEN SESSION – CALL TO ORDER / ROLL CALL INVOCATION – Father Alexei Smith, St. Andrew Russian Greek Catholic Church PLEDGE OF ALLEGIANCE – Council Member Boyles SPECIAL PRESENTATIONS 1. City Event Sponsorship Recognition Page 3 of 99 4 2. Black History Month Proclamation PUBLIC COMMUNICATIONS – (RELATED TO CITY BUSINESS ONLY – UP TO 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) A. PROCEDURAL MOTIONS Read All Ordinances and Resolutions on the Agenda by Title Only Recommendation - Approval B. CONSENT 3. City Council Meeting Minutes Recommendation - 1. Approve the Regular City Council Meeting minutes of January 20, 2026. 2. Alternatively, discuss and take other action related to this item. 4. Warrant Demand Register for December 22, 2025 through January 4, 2026 Recommendation - 1. 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 12C-Wire, 13A-EFT, 13A- Manual Checks, and 13A-Payroll Warrant: warrant numbers 3057681 through 3057686, 3070958 through 3071069, 9003431 through 9003431, and 9100046 through 9100051. 3. Alternatively, discuss and take other action related to this item. 5. Contract with Partner Engineering and Science, Inc. for Citywide Facilities Condition Assessment Services Recommendation - 1. Authorize the City Manager to execute a Professional Services Agreement with Partner Engineering and Science, Inc. (Partner ESI) in Page 4 of 99 5 the amount of $69,900 for facility assessment services of fourteen (14) City facilities and authorize an additional $10,000 for contingency. 2. Alternatively, discuss and take other action related to this item. C. PUBLIC HEARINGS D. STAFF PRESENTATIONS 6. Discussion of City of El Segundo's Participation in the South Bay Regional Housing Trust and Resolution Authorizing Execution of a Joint Powers Agreement Recommendation - 1. Discuss joining the South Bay Regional Housing Trust, a joint powers authority. 2. Adopt a resolution approving the City as a member of the Trust and authorizing the City Manager to execute a Joint Powers Agreement on the City's behalf. 3. Alternatively, discuss and take other action related to this item. 7. Side Letter Agreement Between the City of El Segundo and the El Segundo Firefighters’ Association Updating the Holiday Pay Provision in the Memorandum of Understanding Recommendation - 1. Adopt a Side Letter Agreement Between the City of El Segundo and the El Segundo Firefighters’ Association (“ESFA”) updating the Holiday Pay provision in the Memorandum of Understanding (“MOU”) to define the observed holidays that represent the annual hours paid to comply with Public Employees’ Retirement Law (“PERL”), Government Code 20636, and the California Code of Regulations (“CCR”) Section 571. 2. Alternatively, discuss and take other action related to this item. 8. Resolution and Side Letter Agreement Between the City of El Segundo and the El Segundo Police Managers’ Association Updating the Basic Salary Schedule for the Police Lieutenant Classification Recommendation - 1. Adopt a Side Letter Agreement Between the City of El Segundo and the El Segundo Police Managers’ Association (“ESPMA”) to the Memorandum of Understanding (“MOU”) for the term October 1, 2023 through June 30, 2026 updating the basic salary schedule for Police Page 5 of 99 6 Lieutenant classification. 2. Adopt a Resolution Modifying the Basic Salary Range for the Police Lieutenant classification. 3. Alternatively, discuss and take other action related to this item. 9. Resolution Updating Salary and City Contribution Towards Medical Premiums for the Police Officer Trainee Classification Recommendation - 1. Adopt a resolution updating salary and City contribution towards medical premiums for the Police Officer Trainee classification. 2. Alternatively, discuss and take other action related to this item. E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS F. REPORTS - CITY CLERK G. REPORTS - COUNCIL MEMBERS Council Member Keldorf Council Member Giroux Council Member Boyles Mayor Pro Tem Baldino Mayor Pimentel H. REPORTS - CITY ATTORNEY I. 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. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) MEMORIALS ADJOURNMENT Page 6 of 99 7 POSTED: DATE: January 29, 2026 TIME: 2:00 PM BY: Susan Truax, City Clerk Page 7 of 99 WHEREAS, Black History Month affords special opportunity to become more knowledgeable about black heritage, and to honor the many black leaders who have contributed to the progress of our nation; and WHEREAS, Dr. Woodson initiated Black History Week, February 12, 1926; and for many years, the second week of February, chosen so as to coincide with the birthdays of Frederick Douglas and Abraham Lincoln, was celebrated by African Americans in the United States; and WHEREAS, in 1976, as part of the nation’s bicentennial, Black History Week was expanded and became established as Black History Month, and is now celebrated all over North America; and WHEREAS, such knowledge can strengthen the insight of all our citizens regarding the issues of human rights, the great strides that have been made in the crusade to eliminate the barriers of equality of minority groups, and the continuing struggle against racial discrimination and unconscious bias. NOW, THEREFORE, the Mayor and Members of the City Council of the City of El Segundo, California, do hereby proclaim the month of February 2026 “BLACK HISTORY MONTH” and urge all citizens to join together in making this period of rededication to the principles of justice and equality for all people. City of El Segundo, California Chris Pimentel Mayor Ryan Baldino Mayor Pro Tem Drew Boyles Councilmember Lance Giroux Councilmember Michelle Keldorf Councilmember Proclamation Page 8 of 99 EL SEGUNDO CITY COUNCIL MEETING MINUTES JANUARY 20, 2026 PAGE 1 MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL TUESDAY, JANUARY 20, 2026 CLOSED SESSION – Mayor Pimentel called the meeting to order at 5:00 PM ROLL CALL Mayor Pimentel - Present Mayor Pro Tem Baldino - Present Council Member Boyles - Absent Council Member Giroux - Present Council Member Keldorf - 5:02 PM PUBLIC COMMUNICATION – (Related to City Business Only – 5-minute limit per person, 30-minute limit total) SPECIAL ORDER OF BUSINESS: Mayor Pimentel announced that Council would be meeting in closed session pursuant to the items listed on the agenda. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Threats to Significant exposure/- to litigation pursuant to (Government Code §54956.9(d)(2) or (d)(3)): -1- matter(s). CONFERENCE WITH CITY’S LABOR NEGOTIATOR (GOV’T CODE §54957.6): -2- MATTER(S) 1. Employee Organization: Police Management Association (PMA) and Police Officers' Association (POA) Agency Designated Representative: Laura Drottz Kalty Human Resources Director, Rebecca Redyk Adjourned at 5:52 PM. Minutes are prepared and ordered to correspond to the agenda. OPEN SESSION – Mayor Pimentel called the meeting to order at 6:03 PM ROLL CALL Mayor Pimentel - Present Mayor Pro Tem Baldino - Present Council Member Boyles - Absent Council Member Giroux - Present Council Member Keldorf - Present Page 9 of 99 EL SEGUNDO CITY COUNCIL MEETING MINUTES JANUARY 20, 2026 PAGE 2 INVOCATION – Pastor Rob McKenna, The Bridge PLEDGE OF ALLEGIANCE – Council Member Giroux SPECIAL PRESENTATIONS: 1. Commendation to Mattel – Council Member Keldorf read a Commendation and Aly Mancini, Director of Recreation, Parks, and Library, introduced Mattel representatives, whom she thanked for their outstanding service, remarkable generosity, and unselfish commitment to the community. PUBLIC COMMUNICATIONS – (Related to City Business Only – 5-minute limit per person, 30-minute limit total) Aaron Arugay, Executive Director at Los Angeles County West Vector Control District, addressed the mosquito outbreak on the west side of town and reported on abatement efforts in conjunction with Hyperion staff. Residents can reach Vector Control at 310- 915-7370 or visit www.lawestvector.org to report concerns or request an inspection. Announced there is an opening for an El Segundo representative on the West Vector Control District Board of Trustees. CITY MANAGER FOLLOW-UP COMMENTS: A. Read all Ordinances and Resolutions on Agenda by Title Only. MOTION by Council Member Keldorf, SECONDED by Council Member Giroux to read all ordinances and resolutions on the agenda by title only. MOTION PASSED 4/0 AYES: Pimentel, Baldino, Giroux, and Keldorf NOES: None ABSTAIN: None ABSENT: Boyles B. CONSENT: 2. Approve Regular City Council Meeting minutes of December 16, 2025: (Fiscal Impact: None.) 3. Warrant Demand Register for December 1, 2025 through December 21, 2025: Ratify payroll and employee benefit checks; checks released early due to contracts or agreements; emergency disbursements and/or adjustments; and wire transfers. Approve Warrant Demand Register numbers 11B-EFT, 11B-Manual Checks, 11B-Payroll Warrant (2), 12A-EFT, 12A-Manual Checks, 12B - EFT, 12B-Manual Checks, and 12B-Payroll Warrant: warrant numbers 3057665 through 3057680, 3070642 through 3070957, 9003429 through 9003430, and 9100026 through 9100045. Page 10 of 99 EL SEGUNDO CITY COUNCIL MEETING MINUTES JANUARY 20, 2026 PAGE 3 (Fiscal Impact: The warrants presented were drawn in payment of demands included within the FY 2025-2026 Adopted Budget. The total of $9,255,936.99 ($4,423,874.38 in check warrants and $4,832,062.61 in wire warrants) are for demands drawn on the FY 2025-2026 Budget.) 4. Item pulled by Mayor Pimentel. 5. Construction Contract Award for the Replacement of Gordon Clubhouse HVAC System at Recreation Park, Project No. PW 25-14 Authorize the City Manager to execute a standard Public Works Construction Contract No. 7525 with NKS Mechanical Contracting in the amount of $135,000 for the replacement of the Gordon Clubhouse HVAC at Recreation Park, Project No. PW 25-14, and authorize an additional $15,000 as contingency funds for potential unforeseen conditions. (Fiscal Impact: Amount Budgeted: $150,000 Additional Appropriation: None Account Number(s): 301-511-4101-1-88400 (Citywide HVAC CIP account).) 6. Second Reading and Adoption of Ordinance No. 1682 Amending the City's Existing Anti-Camping Ordinance to Include Certain Portions of Private Property and to Ensure Access to Nonresidential Buildings: Waive second reading and adopt the proposed ordinance. (Fiscal Impact: None.) 7. Construction Contract Award for the Repair of Distressed Walls and Surfaces at Recreation Park, Project No. PW 25-05: Authorize the City Manager to execute a standard Public Works Contract No. 7526 with Golden Gate Construction in the amount of $748,980 for the Repair of Fence Posts, Distressed Walls and Surfaces at Recreation Park at Recreation Park, Project No. PW 25-05, and authorize an additional $150,000 as contingency funds for potential unforeseen conditions.. (Fiscal Impact: Included in the adopted FY 2025-26 Budget. Amount Budgeted: $1,200,000 Additional Appropriation: None Account Number(s): 301-511-4101-1-88421.) 8. Second Amendment to the Professional Services Agreement with Debra Reilly, APLC, DBA Reilly Workplace Investigations: Authorize the City Manager to approve the Second Amendment to contract #6753B with Debra Reilly, APLC, DBA Reilly Workplace Investigations for an additional $50,000 to increase the total contract authority to $140,000 and to extend the contract expiration to December 31, 2026 to perform confidential personnel investigations. (Fiscal Impact: Amount Budgeted: $140,000 Additional Appropriation: None Account Number(s): 001-507-0000-1-56214 (Professional & Technical Services).) MOTION by Council Member Giroux, SECONDED by Mayor Pro Tem Baldino to approve Consent Items 2, 3, 5, 6, 7, and 8. Page 11 of 99 EL SEGUNDO CITY COUNCIL MEETING MINUTES JANUARY 20, 2026 PAGE 4 MOTION PASSED 4/0 AYES: Pimentel, Baldino, Giroux, and Keldorf NOES: None ABSTAIN: None ABSENT: Boyles PULLED ITEM: 4. Construction Contract Award for the Electric Vehicle Charger Installation, Project No. PW 24-15 Authorize the City Manager to execute a standard Public Works Construction Contract No. 7524 with ACDD, Inc. for $92,597 for the Electric Vehicle Charger Installation Project, Project No. PW 24-15, and authorize an additional $14,403 as contingency funds for potential unforeseen conditions. (Fiscal Impact: Amount Budgeted for EV Projects in FY 2025-26: $350,000 Additional Appropriation: No Account Number: 125-511-8519-3-88110.) MOTION by Mayor Pimentel, SECONDED by Mayor Pro Tem Baldino to approve Consent Item 4. MOTION PASSED 4/0 AYES: Pimentel, Baldino, Giroux, and Keldorf NOES: None ABSTAIN: None ABSENT: Boyles C. PUBLIC HEARING: 9. Resolution Adopting New Aquatics Fees: Conduct a public hearing. Adopt Resolution No. 5578 approving Aquatic Specific Fees as part of the FY 2025-26 Master Fee Schedule. (Fiscal Impact: The estimated fiscal impact from the proposed adoptions and changes is additional revenue of approximately $232,000 annually. The fees will go into effect April 1, 2026.) Mayor Pimentel stated this was the time and place to conduct a public hearing. City Clerk Truax stated proper notice had been given in a timely manner and that no written communication had been received. Joe Lormans, Aquatics Manager, presented the item. Public Input: None MOTION by Council Member Keldorf, SECONDED by Council Member Giroux to close Public Hearing Item C 9. MOTION PASSED 4/0 Page 12 of 99 EL SEGUNDO CITY COUNCIL MEETING MINUTES JANUARY 20, 2026 PAGE 5 AYES: Pimentel, Baldino, Giroux, and Keldorf NOES: None ABSTAIN: None ABSENT: Boyles Council Discussion City Attorney Mark Hensley read by title only: RESOLUTION NO. 5578 A RESOLUTION ADOPTING NEW FEES FOR THE EL SEGUNDO AQUATICS SECTION MOTION by Council Member Keldorf, SECONDED by Council Member Giroux to adopt revised Resolution No. 5578, providing that the fees shall be automatically adjusted effective March 1, 2027. MOTION PASSED 4/0 AYES: Pimentel, Baldino, Giroux, and Keldorf NOES: None ABSTAIN: None ABSENT: Boyles D. STAFF PRESENTATIONS: 10. Updates to the Fire Division Chief and Fire Marshal Classifications: Approve the revised classification specification and exam plan for the Fire Division Chief and Fire Marshal positions. Adopt Resolution No. 5579 modifying the basic salary range for the Fire Marshal. (Fiscal Impact: There is no fiscal impact to update the classification specifications and exam plans. An increase the Fire Marshal base salary for a full fiscal year will have a fiscal impact of $14,783. This cost can be absorbed through salary savings as the position has remained vacant during this fiscal year. No additional appropriation is needed.) Rebecca Redyk, Director of Human Resources presented the item. Council Discussion Mark Hensley, City Attorney, read by title only: RESOLUTION NO. 5579 A RESOLUTION MODIFYING THE BASIC SALARY RANGE FOR A FULL-TIME JOB CLASSIFICATION Page 13 of 99 EL SEGUNDO CITY COUNCIL MEETING MINUTES JANUARY 20, 2026 PAGE 6 MOTION by Mayor Pro Tem Baldino, SECONDED by Council Member Keldorf to approve the revised classification specification and exam plan for the Fire Division Chief and Fire Marshal positions and to adopt Resolution No. 5579 modifying the basic salary range for the Fire Marshal. MOTION PASSED 4/0 AYES: Pimentel, Baldino, Giroux, and Keldorf NOES: None ABSTAIN: None ABSENT: Boyles 11. Water and Wastewater Rate Study Request for Proposals: Authorize the Chief Financial Officer to release a Request for Proposals for the Water and Wastewater Rate Study. (Fiscal Impact: The FY 2025-26 adopted budget includes $180,000 for the Water and Wastewater Rate Study. If the bid proposals come in higher than the current budget, additional budget appropriation would be necessary. Amount Budgeted in FY 2025-26: $180,000 Additional Appropriation: No Account Number: 501-000-7102-5-56204 ($90,000 in Water Fund), 502-000-4301-5- 56204 ($90,000 Wastewater Fund) Any amount unspent this fiscal year will be carried over to the next fiscal year, until the rate study is finalized.) Paul Chung, CFO and City Treasurer presented the item. Council Discussion MOTION by Council Member Giroux, SECONDED by Council Member Keldorf to authorize the Chief Financial Officer to release a Request for Proposals for the Water and Wastewater Rate Study. MOTION PASSED 4/0 AYES: Pimentel, Baldino, Giroux, and Keldorf NOES: None ABSTAIN: None ABSENT: Boyles 12. Transfer of Administration, Investment Management, and Assets of the City's Other Post Employment Benefits (Retiree Medical) Section 115 Trust: Adopt Resolution No. 5580 authorizing the City Manager to move forward with the trust-to-trust transfer. Terminate the contracts and agreements with CalPERS. Execute agreements to transfer administration and investment management services of City’s Other Post Employment Benefits Section 115 Trust to Shuster Advisory Group, LLC, transfer Trust assets to Charles Schwab Trust Bank, and name Alta Trust Company as the Directed Trustee. Page 14 of 99 EL SEGUNDO CITY COUNCIL MEETING MINUTES JANUARY 20, 2026 PAGE 7 (Fiscal Impact: There is no fiscal impact related to the recommenced action. There is potential for enhanced financial performance due to customizable portfolios, flexibility to adapt to changing risk models, and fund company diversity (Fidelity, Vanguard, American Funds, BlackRock, PIMCO, etc.). Shuster Advisory Group. LLC provides ten investment strategies that combine both active and passive (index) investment solutions to take advantage of the optimum mix of investments from both an investment return and cost perspective. Shuster Advisory Group. LLC will also provide a custom portfolio at no additional cost. Lastly, there is market volatility that does not have a direct fiscal impact, but an inherent risk associated with portfolio management.) Paul Chung, CFO and City Treasurer, and Mark Shuster, Managing Partner & CEO of Shuster Advisory Group, LLC presented the item. Council Discussion Mark Hensley, City Attorney, read by title only: RESOLUTION NO. 5580 A RESOLUTION APPROVING THE TERMINATION OF THE CALIFORNIA EMPLOYERS’ RETIREE BENEFIT TRUST (CERBT) PROGRAM AND TRANSFER OF ASSETS TO THE MULTIPLE EMPLOYER OPEB/PENSION 115 TRUST ADMINISTERED BY SHUSTER ADVISORY GROUP, LLC MOTION by Mayor Pro Tem Baldino, SECONDED by Council Member Keldorf to adopt Resolution No. 5580 authorizing the City Manager to move forward with the trust-to-trust transfer, terminate the contracts and agreements with CalPERS, execute agreements to transfer administration and investment management services of City’s Other Post Employment Benefits Section 115 Trust to Shuster Advisory Group, LLC, transfer Trust assets to Charles Schwab Trust Bank, and name Alta Trust Company as the Directed Trustee. MOTION PASSED 4/0 AYES: Pimentel, Baldino, Giroux, and Keldorf NOES: None ABSTAIN: None ABSENT: Boyles E. COMMITTEES, COMMISSIONS, AND BOARDS PRESENTATION: F. REPORTS – CITY CLERK – Wished a happy birthday to Council Member Boyles. G. REPORTS – COUNCIL MEMBERS Page 15 of 99 EL SEGUNDO CITY COUNCIL MEETING MINUTES JANUARY 20, 2026 PAGE 8 Council Member Keldorf – Requested to include on a future agenda an item on staff time spent on addressing Hyperion issues. Council Member Giroux – No Report Council Member Boyles – ABSENT Mayor Pro Tem Baldino – Thanked Public Works staff for their efforts to facilitate the maintenance project at Recreation Park. Mayor Pimentel – Metro will be holding a meeting on the C Line extension on January 23. A League of Cities Taxation Committee meeting is scheduled for Thursday. The Council of Mayors will meet next week with the Department of the Air Force to discuss the importance of the Los Angeles Air Force Base. There are two upcoming Sanitation Committee meetings, one of which will address the Clearwater Tunnel Project. I. REPORTS – CITY ATTORNEY –Will report about new 2025 legislation at the next Council meeting. J. REPORTS/FOLLOW-UP – CITY MANAGER – Announced the promotion of former ESFD Division Chief Ryan Allee to the position of El Segundo Fire Chief. Thanked Elias Sassoon, Director of Public Works and Becky Robinson, Communications Manager, for their efforts over the weekend to ensure Vector Control was coordinating efforts with Hyperion staff to deal with the mosquito problem, and to keep the community updated on mitigation efforts. Reported the AQMD received 24 odor complaints and issued no notices of violation since December 15. Hyperion conducted its semi-annual fence line assessments on December 30 and 31. MEMORIAL: Mayor Pimentel adjourned the meeting in memory of Steve Haxton and Ron Beltramo, two residents who recently passed. Adjourned at 7:08 PM. ______________________________ Susan Truax, City Clerk Page 16 of 99 City Council Agenda Statement Meeting Date: February 3, 2026 Agenda Heading:Consent Item Number: B.4 TITLE: Warrant Demand Register for December 22, 2025 through January 4, 2026 RECOMMENDATION: 1. 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 12C-Wire, 13A-EFT, 13A-Manual Checks, and 13A-Payroll Warrant: warrant numbers 3057681 through 3057686, 3070958 through 3071069, 9003431 through 9003431, and 9100046 through 9100051. 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 2025-2026 Adopted Budget. The total of $5,938,339.32 ($3,351,165.86 in check warrants and $2,587,173.46 in wire warrants) are for demands drawn on the FY 2025- 2026 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 Page 17 of 99 Warrant Demand Register February 3, 2026 Page 2 of 2 specific date. Such warrants look like checks and clear through the banking system like 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. DISCUSSION: 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 Strategy A: Identify opportunities for new revenues, enhancement of existing revenues, and exploration of potential funding options to support programs and projects. PREPARED BY: Liz Lydic, Management Analyst REVIEWED BY: Wei Cao, CPA, CPFO, Finance Manager APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Register 12c - Wire - summary 2. Register 13a - EFT - summary 3. Register 13a - Manual Checks - summary 4. Register 13a Payroll Warrant - summary Page 18 of 99 Page 19 of 99 Warrant 13a/EFT Payments Page 20 of 99 Page 21 of 99 Page 22 of 99 Warrant 13a/Manual Checks Page 23 of 99 Page 24 of 99 Page 25 of 99 Page 26 of 99 Page 27 of 99 Page 28 of 99 Page 29 of 99 City Council Agenda Statement Meeting Date: February 3, 2026 Agenda Heading:Consent Item Number: B.5 TITLE: Contract with Partner Engineering and Science, Inc. for Citywide Facilities Condition Assessment Services RECOMMENDATION: 1. Authorize the City Manager to execute a Professional Services Agreement with Partner Engineering and Science, Inc. (Partner ESI) in the amount of $69,900 for facility assessment services of fourteen (14) City facilities and authorize an additional $10,000 for contingency. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: Amount Budgeted: $150,000 Additional Appropriation: None Account Number: 001-511-4101-7-56204 BACKGROUND: The City of El Segundo last performed a comprehensive citywide Facilities Condition Assessment (FCA) in 2019. Since then, Public Works has made significant progress towards upgrading and maintaining these facilities by utilizing the 2019 FCA data alongside community feedback. While the initial assessment was instrumental in providing a clear plan for facility improvements, an update is now needed to ensure capital planning remains aligned with needed improvements. Further, it is essential to have updated cost estimates for these improvements. On July 28, 2025, City staff released a Request for Proposals (RFP) for facility assessment services for fourteen (14) City-owned facilities. The scope of work included: 1. A "Facilities Condition Assessment Report" detailing conditions and generating a Facilities Condition Index (FCI). The FCI indicates the physical condition of a building by comparing the repair costs to replacement value. Page 30 of 99 Consent Agenda February 3, 2026 Page 2 of 3 2. A Short-Term Prioritized Capital Improvement Plan (CIP) for next five years 3. A Long-Term Prioritized CIP for the next 10 years The assessments will include, but are not limited to, the following activities: 1. Site evaluations and documentation of the condition of existing facilities. 2. Investigation reports of buildings including structural, architectural analysis, ADA accessibility, fire/life, safety, Mechanical & Electrical & Plumbing (MEP) conditions, energy, environmental, and roofing systems. 3. Interviews with key City staff, including facility maintenance personnel and reviews of available as-built documents, existing studies, operations and maintenance records. 4. Generation of a prioritized list of deficiencies and recommended renovations, including estimated costs to remedy deficiencies and/or restore facilities to current code requirements. 5. Provision of a cost estimate to replace the facility and generate a Facilities Condition Index (FCI) to compare the renovation cost versus replacement. DISCUSSION: On September 10, 2025, the City Clerk’s office received four qualified proposals from facility assessment firms as follows: 1. Roth Integrated Asset Management Strategies (Roth IAMS) 2. Bureau Veritas 3. Partner Engineering and Science, Inc. (Partner ESI) 4. AtkinsRealis The firms’ proposals were evaluated and ranked based on consultant qualifications and expertise, quality of proposed services, and the extent to which the services meet the City’s needs. AtkinsRealis and Partner ESI were ranked the top two firms and were invited to be interviewed by Public Works staff. Partner ESI was ultimately selected as the top-ranked firm based upon their superior qualifications and their competitively priced proposal. Staff respectfully recommends City Council approve the selection of Partner ESI. With City Council authorization, the selected firm can begin the assessment process in February 2026, starting with staff interviews and documentation review, with final reports anticipated by June 2026. Page 31 of 99 Consent Agenda February 3, 2026 Page 3 of 3 CITY STRATEGIC PLAN COMPLIANCE: Goal 1: Develop and Maintain Quality Infrastructure and Technology Strategy A: Seek opportunities to implement and expedite the projects in the Capital Improvement Program and ensure that City-owned infrastructure is well maintained, including streets, entryways, and facilities. Goal 2: Optimize Community Safety and Preparedness Strategy C: Protect and prepare the El Segundo community and staff for any emergency, disaster, or environmental violation. PREPARED BY: Eric Brown, Associate Engineer REVIEWED BY: Elias Sassoon, Public Works Director APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Partner ESI Proposal 2. Partner ESI Cost Estimate Page 32 of 99 City of El Segundo Public Works Department 2025 Facilities Condition Assessment | RFP No. 25-03 1 | Page 3. EXECUTIVE SUMMARY PROJECT UNDERSTANDING Partner Engineering and Science, Inc. is pleased to submit our proposal for the City of El Segundo’s 2025 Facilities Condition Assessment (FCA) RFP No. 25-03. Our submission reflects a comprehensive, data-driven approach to evaluating the condition of 14 key municipal facilities, with the goal of supporting the City’s capital planning, maintenance prioritization, and long-term infrastructure investment strategy. Approach & Methodology Our team will conduct thorough site evaluations, non-destructive testing, and stakeholder interviews to assess architectural, structural, mechanical, electrical, plumbing, ADA, fire/life safety, energy efficiency, and environmental systems. We will integrate findings from the City’s 2019 FCA and completed projects to produce updated, facility-specific reports. Each facility will be assigned a Facilities Condition Index (FCI), and we will provide cost estimates for both renovation and replacement scenarios. Deliverables will include: • Individual FCA reports for each facility • A 5-year urgent-priority Capital Improvement Program (CIP) • A 10-year long-term prioritized CIP • Funding mechanism recommendations • Draft and final presentations to City staff Our team uses established project and workforce management software, project management processes, and quality assurance/quality control procedures, with oversight and review by experienced senior level personnel and managers, which are detailed in Section 8-Project Understanding and Approach. Proposal Highlights Our proposal addresses all required components outlined in Section 3 of the RFP, including a detailed cost proposal, and a full response to the Scope of Services. We have also identified potential challenges unique to this assessment and outlined mitigation strategies based on our experience with similar projects. Partner’s team of licensed engineers and certified specialists will also perform a basic energy review to assess energy efficiency and provide a high-level estimate of the economic viability of potential energy cost savings measures for the building’s primary MEP systems and envelope. The review will include an overview of annual baseline energy usage, identified energy efficiency measures, a review of applicable energy codes, and a summary table presenting order-of-magnitude savings and costs. Findings will be documented in a standalone report. Experience Partner was incorporated in the City of Torrance in 2006, and a local business enterprise (LBE) in Los Angeles County, with 1,500 employees, 300+ in California and still growing, with a proven track record of delivering more than 12,000 condition assessments and capital planning services across California in the last 5 years, with an average of 2,400+ annually, which includes a wide variety of structures and property types and sizes and capital planning services. To date, Partner has completed more than 2,500 ASHRAE Level 1 studies, 4,500 ASHRAE Level 2 studies, 90 ASHRAE Level 3 and RCx projects, and over 1,000 additional energy program–related studies. We have provided various multidisciplinary engineering services to 70 California public agencies (city, county, and housing authorities) and hundreds of other private corporations, lenders, developers, commercial real estate investors, nonprofit and religious organizations across the state, so we are very familiar with governmental requirements and processes. Many of our condition assessments have also included additional services, such as energy surveys, mechanical, electrical, plumbing/fire life safety (MEP/FLS) evaluations, accessibility or ADA assessments, structural investigations, Page 33 of 99 City of El Segundo Public Works Department 2025 Facilities Condition Assessment | RFP No. 25-03 2 | Page and roof assessments. Our multidisciplinary team has extensive experience in building sciences, environmental consulting, and municipal infrastructure assessments. We bring deep familiarity with California building codes, ADA compliance, and environmental safety standards. We are a full-service environmental and engineering consulting company offering multidisciplinary services in engineering and environmental services including Environmental Health & Safety and Regulatory Compliance, Environmental Remediation, Energy and Sustainability Consulting, Construction Services, Construction Risk Management, Geotechnical Investigation, Industrial Hygiene, Land Surveying and Mapping, and Zoning Services. Staffing Our proposed key personnel include seasoned professionals with expertise in architecture, engineering, environmental science, and project management. Our key team members have between 10- to 30 years of experience in the engineering consulting industry and also performed projects prior to joining Partner, in California and throughout the country for both public and private clients. Each team member’s resume is included, detailing their qualifications, certifications, and relevant experience. Michael LaFalce, Jr., a registered architect and our Managing Director for Facility Conditions Assessments with 20+ years of experience in engineering consulting, will serve as the primary point of contact for contract management and overall program management, along with Gary Cohn, a licensed architect in California and long-time resident with 30+ years in the consulting field and industry experience in condition assessments and in-depth local area knowledge, will serve as the alternate point of contact and oversight of the project manager and assessor team. We provided short bios with experience and training highlights, along with full resumes in Appendix A. Summary Partner is an established leader in property assessments, with deep experience delivering mission critical information to clients, through notifications, an optional online client portal, emails, and conversations with experts. Kick-off meetings and regular training will keep all stakeholders aligned, reducing miscommunication and keeping projects on time. Partner is a national leader in condition assessments, with a California-based staff of experts managing a high volume of projects across all property types, including office buildings, mixed-use, parks and recreational facilities, medical facilities, multifamily, and many more. These expert-backed services are also integrated with other Partner offerings like environmental, survey, zoning, and appraisal services, allowing Partner to uniquely offer “one-stop shop” in-house multidisciplinary services in addition to the requested services. Page 34 of 99 City of El Segundo Public Works Department 2025 Facilities Condition Assessment | RFP No. 25-03 22 | Page Facility Needs and Utilization During our assessment, Partner will conduct interviews and make observations to better understand how each facility is being utilized. Partner will include an opinion of whether it is over or underutilized in their condition assessment reports. ENERGY REVIEW Partner’s team of licensed engineers and certified specialists will perform a basic energy review to assess energy efficiency and provide a high-level estimate of the economic viability of potential energy cost savings measures for the building’s primary MEP systems and envelope. The review will include an overview of annual baseline energy usage, identified energy efficiency measures, a review of applicable energy codes, and a summary table presenting order-of-magnitude savings and costs. Findings will be documented in a standalone report. Scope of Work • Review readily available utility data from the main electric and gas meters serving the building and establish an annual energy usage baseline. Compare usage per square foot with industry benchmarks for similar buildings. • Conduct a basic site visit, interview a knowledgeable on-site representative, and review relevant data provided by others, including the FCA report, as it relates to energy efficiency. • Identify energy-saving opportunities for MEP equipment and building envelope elements that are inefficient, in poor condition, deficient, or near the end of their useful life. • Provide a cursory payback analysis using order-of-magnitude estimates of energy savings and implementation costs. Consider incremental costs for replacing end-of-life equipment with high-efficiency systems versus like-for-like replacements that meet minimum mandatory and prescriptive City and State code requirements. • Review compliance with applicable energy codes and regulations at the local, state, and federal levels. • Summarize all findings in a single energy efficiency report, including an energy usage baseline, identified measures, an energy code compliance review, and a summary table of estimated savings and costs. Exclusions This scope does not include comprehensive energy audits per ASHRAE Levels 1, 2, or 3; carbon/greenhouse gas assessments; reduction analyses; electrification studies; or feasibility studies for electric vehicle charging or photovoltaic systems. These services can be provided as an additional scope upon client request. PROJECT MANAGEMENT STRATEGY AND FOCUS ON CLIENT SERVICE Partner uses the following methods to optimally manage projects and staffing assignments: Anticipating, Addressing, and Resolving Challenges. Our Contract Manager (CM), Project Manager (PM), and Technical Leads discuss the scope, project sites, staffing, and potential issues initially at contract start and during the project by holding regular weekly status meetings to discuss staffing assignments and any other project details before initiation and communication with the City’s Project Manager per a predetermined schedule to check in on-site status, any complications, and notice to proceed. In this manner, we can identify any potential issues before they occur—ensuring that we meet your expectations for quality and on-time delivery. Managing Multiple Task Assignments. Partner routinely manages large assessment portfolios (>100 sites) at a time. Our internal proprietary project management software, PLINK, allows us to assign staff, monitor deliverables, and ensure on-time delivery of our reports. Partner uses the combination of the collaboration of our CM, PM, and Technical Leads, and PLINK to ensure projects are staffed to meet project timelines. This system allows us to quickly identify the availability of our project staff and schedules and serves as a workflow management system for all team members. Essential to managing the project flow is having the roles systematically assigned, integrated, and tracked. In addition, this project method successfully binds the team together, helps with assigning and synchronizing tasks, and provides up-to-date project performance rating information on individual staff members. This method is critical for the execution of Page 35 of 99 City of El Segundo Public Works Department 2025 Facilities Condition Assessment | RFP No. 25-03 23 | Page assessments on large, multi-property portfolios on timely schedules. Partner has a proven track record with blanket contract agreements where completing multi-site projects or portfolios under tight schedules is the norm. Providing Expedited Services on Requests for Proposals and Deliverables. Partner routinely provides proposals for our clients under our current on-call contracts within 24 hours of request. Reports are often submitted before the requested due date. The Partner team for this effort will be dedicated to completing the project in the timeframe agreed upon between City and the PM. That said, we will dedicate 100% of efforts to meet the City’s goals. Partner is committed to meeting our customer’s requirements for quick or expedited turn-around time for reports and deliverables. We track all phases of a project, budget, and timeliness. All team members can access the status of a project and see pending project tasks. Our system notifies our team of pending deliverables and have found that this system has significantly improved on-time delivery for our customers. Each report and invoice are carefully reviewed with information verified by our PM or Project Lead. We consider ourselves your eyes and ears on the ground and commit to provide regular status reports. Providing Quick Response Times to Inquiries. Partner’s customer service model is to respond to customer phone calls or emails within 2 hours and 24 hours for proposal requests. Our CM, PM, and technical resources are all prepared to respond and answer your questions. Because of this deep bench of resources, we can address project-specific questions and share solutions. The location of our Torrance office also allows for rapid or same day response to onsite project needs. We have a deep bench of assessor staff based within an hour of El Segundo to respond quickly to your facilities. Prioritizing Staffing in Relation to Importance of Assigned Projects and Schedule Requirements. Partner’s priority for staffing is to identify professionals with the skills and experience that best match the project assignment. Our internal project management software PLINK tracks our staff skills, experience, and availability, ensuring the right person is staffed for your project. With our local team of 80 experienced professionals in Torrance, Partner can quickly assign our best resources for immediate response and for longer-term project requirements. Project scheduling begins with the needs of the City, project scope of services, health & safety requirements, and the principles of our internal communication protocol. Project Timeline Partner is fully committed to the timely and successful delivery of all project deliverables. We pride ourselves on providing highly responsive, quality customer service to all clients through the dedication of our entire Project Team. This time schedule represents our best professional estimate for the requested scope of work. However, we recognize that project requirements and timelines may change due to weather impacts in the region and holidays. Partner is committed to working with the City to adjust and customize a flexible project timeline on request. Our approach to our practice is one of communication, technical excellence, and problem solving, and we invest heavily, ensuring our clients receive the best quality product and service. Building and maintaining excellent working relationships is a critical part of our approach to services, and as a testimony to this, we enjoy long-term relationships with most of our client base. Customer service is monitored as part of Partner's standard quality assurance/quality control (QA/QC) process, through client satisfaction evaluations and internal project team reviews. Project Milestones Task Tentative Dates Project Award To Be Determined Project Scheduling and Staffing Assignments 10 business days after signed agreement received. Conduct Site Assessment One week Submit Site Visit Debrief 48 hours after Site Visit Submit Draft Report and Opinions of Costs 25 business days after each site visit completed. Client to Review and Provide Comments One week Partner reviews comments and revises reports to Final One week Page 36 of 99 City of El Segundo Public Works 2025 Facilities Condition Assessment | RFP No. 25-03 Received 01-07-2026 Partner ESI - Updated Cost Proposal Name Address Age AREA TOTAL ALL SCOPES HILLTOP POOL MARYLAND AND GRAND 1970 760 $2,975 Water Yard 400 Lomita St 1966 8,680 $6,550 REC PARK MAIN COMPLEX / CHECKOUT BLDG 300 EAST PINE 1980 2,016 $2,975 MAINTENANCE YARD / WAREHOUSE STORAGE 150 ILLINOIS ST 1983 4,320 $2,975 MAINTENANCE YARD / ADMIN BLDG 150 ILLINOIS ST 1983 7,000 $2,975 REC PARK MAIN COMPLEX / JOSLYN RECREATION CTR 300 EAST PINE 1955 7,010 $3,775 MAINTENANCE YARD / VEHICLE STORAGE 150 ILLINOIS ST 1983 8,814 $2,975 REC PARK MAIN COMPLEX / CLUBHOUSE 300 EAST PINE 1957 11,623 $5,900 FIRE STATION NO. 2 2261 MARIPOSA VE 2009 13,959 $5,900 MAINTENANCE YARD / MAINT SHOP 150 ILLINOIS ST 1983 17,170 $4,350 FIRE STATION NO. 1 314 MAIN ST 1961 17,800 $5,900 CITY HALL 350 MAIN ST 1955 / 1977 27,961 $7,550 LIBRARY 111 WEST MARIPOSA 1948 / 1963 / 1991 31,275 $7,550 POLICE STATION AND COMMUNICATION CTR 348 MAIN ST 1978 / 2000 32,868 $7,550 191,256 $69,900 Page 37 of 99 City Council Agenda Statement Meeting Date: February 3, 2026 Agenda Heading:Staff Presentations Item Number: D.6 TITLE: Discussion of City of El Segundo's Participation in the South Bay Regional Housing Trust and Resolution Authorizing Execution of a Joint Powers Agreement RECOMMENDATION: 1. Discuss joining the South Bay Regional Housing Trust, a joint powers authority. 2. Adopt a resolution approving the City as a member of the Trust and authorizing the City Manager to execute a Joint Powers Agreement on the City's behalf. 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: There is no immediate fiscal impact associated with approving the South Bay Regional Housing Trust Joint Powers Agreement. If determined necessary and approved by its Board of Directors in the future, membership dues may be required. BACKGROUND: As part of a Regional Early Action Planning (REAP) 2.0 project funded through SCAG, the South Bay Cities Council of Governments (SBCCOG) has been working on the development of a South Bay Regional Housing Trust (SBRHT). If formed, the SBRHT would help fund the development and construction of affordable housing units in member cities only for development projects that are supported by the city in which they are proposed. Although the SBCCOG is leading the early feasibility work, the SBRHT would be a separate joint powers authority with its own Board of Directors. Four cities would have to approve the Joint Powers Agreement (JPA) for the SBRHT to form. The SBRHT is expressly authorized by state law (Gov. Code section 6539.9). Over the past year, the SBCCOG’s consultant, CivicHome, has been developing a SBRHT strategic plan, JPA, staffing plan, budget, and potential programs for the SBRHT Board to consider adopting when formed. A strategic plan advisory committee consisting of SBCCOG Board members, city staff, and housing experts/affordable Page 38 of 99 South Bay Regional Housing Trust and Joint Powers Agreement February 3, 2026 Page 2 of 4 housing developers provided input over a series of four meetings throughout the process. CivicHome presented an update to the SBCCOG Board at its October 2025 meeting and to the South Bay City Managers group on November 19th. At its meeting on November 20, 2025, the SBCCOG Board of Directors voted to recommend member agencies move forward with the formation of the SBRHT. A representative from the SBCCOG will attend the meeting to assist in presenting this item. DISCUSSION: Since the SBCCOG began working on the SBRHT, more information about funding coming to the South Bay through Measure A has become available. In particular, the SBCCOG will be receiving approximately $7.3 million annually through Los Angeles County Housing Solutions Agency's (LACAHSA’s) Measure A funded “Production, Preservation, and Ownership (PPO)” program. LACAHSA also has agency matching funds that may be available and could increase that amount to around $14 million. Additionally, these funds along with other Measure A funding, could be used to offset most or all the SBRHT administrative costs, particularly during the startup period. As SBCCOG staff began exploring opportunities to use the PPO funds while the SBRHT was being considered, it became evident that the SBCCOG is limited in its use of those funds in ways that the SBRHT would not be. Primarily, the SBCCOG is not allowed to make or develop loans, so all allocations of PPO funds made by the SBCCOG would have to be in the form of grants or rental/operating subsidies. These funds would be given out to a project and never return for additional use. The SBRHT would have lending authority and could also provide soft development loans, construction/pre-development loans, preservation/acquisition stakes, master leasing, and direct service/homebuyer assistance programs. These approaches would be revenue generating and allow for these public dollars to come back to the trust over time and be reprogrammed to maximize their use. The San Gabriel Valley’s regional housing trust (formed several years ago) is generating over $230,000 annually in interest and loan fee revenue. Although there will be administrative costs to operate the SBRHT, SBCCOG staff believes that most or all those costs could be covered through administrative dollars available through LACAHSA programs. This would allow for the SBRHT to offer low to no membership fees, particularly during the first year or two as the organization gets formed. Orange County and Gateway Cities trusts have also started with little or no membership fees and have been able to offset them through administrative funding received through grants and other funding going into their trusts. It is important to note, however, that whether there will be membership costs for the SBRHT after the first year will be determined by the Trust's Board of Directors, not the SBCCOG. For the first year, start-up costs can be covered completely with the LACAHSA funds that the SBCCOG has received with SBCCOG Board approval. Page 39 of 99 South Bay Regional Housing Trust and Joint Powers Agreement February 3, 2026 Page 3 of 4 If the SBRHT is not formed and the SBCCOG ultimately provides grants using PPO funds, many administrative costs will still be incurred. For example, the SBCCOG will still be required to hire consultant experts to evaluate and vet the housing developments seeking grant funding. These costs are practically unavoidable but are covered through Measure A funding. Pending Legislation to Modify SBRHT SBCCOG staff has been working with SBCCOG Legal Counsel and Senator Allen’s office to explore amendments to the initial SBRHT formation legislation. Although modeled off legislation for other trusts such as the one in San Gabriel Valley (SB 1444), several items have been reevaluated since passage of that bill. The amendments being sought include: • Removing the SBCCOG from involvement in determining the number of SBRHT Board of Directors, their selection, and the responsibility for filling vacancies. • Adding language to provide flexibility for the SBRHT Board to determine when they choose their chair and vice-chair. • Addition of the ability to fund the development and construction of moderate- income housing. • Allowing member agencies to appoint non-elected officials for SBRHT Board alternates Currently, SB 1444 requires the SBRHT Board (regardless of delegate or alternate status) to be a mayor, council member, or LA County Supervisor of the member agency. Several SBCCOG Board members suggested that non-elected officials be allowed to be alternate SBRHT Board members if the city so designates. The Clean Power Alliance and other similar boards use this approach effectively, especially since long deliberations often limit council members’ availability for other critical duties. When a bill to revise SB 1444 is drafted, the SBCCOG will be soliciting support letters from South Bay cities to encourage the Legislature to approve these changes. Despite these pending changes, the SBCCOG Board of Directors recommends approval of the SBRHT JPA with its current language and would recommend SBRHT members amend the JPA in the future after any SB 1444 revisions are enacted. The current JPA is written to follow the current SB 1444 language and was developed by the South Bay City Managers working group and SBCCOG Legal Counsel Michael Jenkins. CITY STRATEGIC PLAN COMPLIANCE: Goal 5: Champion Economic Development and Fiscal Sustainability Strategy D: Implement community planning, land use, and enforcement policies that encourage growth while preserving El Segundo's quality of life and small-town Page 40 of 99 South Bay Regional Housing Trust and Joint Powers Agreement February 3, 2026 Page 4 of 4 character. PREPARED BY: Michael Allen, Community Development Director REVIEWED BY: Michael Allen, Community Development Director APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. SBRHT JPA Strategic Plan Summary Presentation 2. LACAHSA Funding & SBCCOG vs. SBRHT Presentation 3. Proposed Resolution 4. Exhibit A - SBRHT Joint Powers Agreement as of 01.26.26 Page 41 of 99 SOUTH BAY REGIONAL HOUSING TRUST STRATEGIC PLAN OVERVIEW & JPA SUMMARY Page 42 of 99 EXECUTIVE SUMMARY •Mission Statement •To empower South Bay cities with flexible funding, strategic guidance, and technical assistance that advance local housing priorities, expand housing opportunity, and support the development and preservation of affordable and supportive housing across the region. •Vision Statement •A South Bay region collaborating to expand housing opportunities through innovation, strategic partnerships, and coordinated Trust resources—supporting access to diverse housing choices that strengthen community stability and economic vitality. Page 43 of 99 •Governance Board •One Trust Board Director from each member city + Two Trust Board Directors representing housing experts. •Trust Staff •Option 1: SBCCOG Employees •Option 2: Contracted Consulting Firm •Organization Chart •Advisory Committee Framework •Purpose and Role •Membership Composition •Meeting frequency and output •Benefits to the Trust GOVERNANCE, TRUST STAFF, AND ADVISORY COMMITTEE Page 44 of 99 TRUST FORMATION & IMPLEMENTATION GOALS 1.Secure initial capital funding commitments. 2.Establish transparent, accountable, and sustainable governance. 3.Promote regional collaborative and shared solutions. 4.Strengthen local capacity through technical assistance. 5.Establish performance metrics and evaluation tools. 6.Building the Trust’s brand and demonstrating early impact. 7.Design and launch housing funding programs Page 45 of 99 SOUTH BAY REGIONAL HOUSING TRUST DRAFT JOINT EXERCISE OF POWERS AGREEMENT Page 46 of 99 INTRODUCTION •2022 Legislation added to the CA Government Code section 6539.9 authorizing the creation of the South Bay Regional Housing Trust. •Purpose: Receive and leverage public and private funding for planning and construction of housing of all types and tenures for persons and families of Extremely-Low, Very-Low, and Low-Income. •Term –The Effective Date of the JPA will be the date of approval by the fourth city to join the Trust. Page 47 of 99 LIMITATION ON POWERS •Regulate land use within the jurisdiction of any of the Parties; •Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation or tax assessment, as a condition of approving the funding for or approval of a development project; •Require or incentivize inclusionary zoning requirements; •Require the Parties to dedicate or assign funding for any SBRHT obligations or programs; •Fund or approve a housing project or program that is not supported by the governing body of the jurisdiction (a city or the county) in which the proposed project is sited; •Require the Parties to accept or provide any number of housing units as a prerequisite to joining or remaining a member of SBRHT; and •Affect the individual power of each Party separately to implement affordable housing projects and programs generated within its jurisdictional boundaries. Page 48 of 99 TERMS OF THE JPA •One elected official from each Trust member City, appointed by that City Council + Two Housing Experts appointed by the City Managers Committee. •Withdrawal –anytime with written notice and executed copy of city resolution subject to notice received at least 90 days prior to start of fiscal year and payment of any administrative fees. Page 49 of 99 1 SO U T H B A Y H O U S I N G T R U S T Why A South Bay Housing Trust? •Voters approved Measure A in 2024; legislating ~$13 million a year for Housing and Prevention funding for SBCCOG •This presentation will talk about the funds that are dedicated to Production and Preservation, and Ownership of housing as those are the funds we would be considering for the proposed Housing Trust Page 50 of 99 2 LA C A H S A P P O F U N D S Production, Preservation, and Ownership (PPO) •SBCCOG mandated to program $7.3 million of LACAHSA PPO funds. •LACAHSA agency funds can also match our funding – so potentially +/- $14 million of funding for our cities. (allocations determined by low income RHNA numbers) Page 51 of 99 3 SG V A N D G A T E W A Y SGV and Gateway Housing Trust Before LACAHSA SGV and Gateway COGS Housing Trust Housing Trust + LACAHSA LACAHSA •SGV and Gateway formed their Housing Trust first, and then incorporated LACAHSA funds into their Trust 2020/2023 2025 Page 52 of 99 4 SB C C O G SBCCOG Received LACAHSA Funding First SBCCOG LACAHSA •SBCCOG has received LACAHSA funding and is contemplating a Housing Trust 2025 Page 53 of 99 5 PR O B L E M SBCCOG May Need a Trust to Fulfill LACAHSA Portfolio LACAHSA Product Portfolio: •Grants •Soft Development Loans (revenue generating) •Construction/Pre-Development Loans (revenue generating) •Preservation Acquisition/Equity stakes (revenue generating) •Master Leasing •Rental or Operating Subsidies •Direct Service - Homebuyer Assistance (revenue generating) Activities in Red may not be possible under SBCCOG current authority – handicapping our ability to maximize our LACAHSA funding However, they would be possible under a Housing Trust Page 54 of 99 6 SG V R E V E N U E E X A M P L E SGV Housing Trust Generating Revenue •SGV Housing Trust is generating over $230,000 a year in Interest and Loan Fee Revenue •Their Revolving Loan Fund will receive its first loan repayment, allowing their Trust to recycle those funds to another project •We can achieve similar results with our LACAHSA funds, but need a Housing Trust in order to do it Page 55 of 99 7 AL L C I T I E S C A N B E N E F I T What about cities with no development opportunities? If cities have no development opportunities, there are other ways to participate in LACAHSA PPO Funds + Housing Trust ▪Preservation of existing affordable housing ▪Master Leasing ▪Rent or Operating Subsidies ▪First Time Homebuyer Assistance Page 56 of 99 8 Evictions •No city is immune to financial stress that constituents face, whether they are renters or homeowners •Evictions are one pathway into homelessness Page 57 of 99 9 SB C C O G L A C A H S A SBCCOG LACAHSA Activity FY25/26 • SBCCOG issued soft notice of funding availability in September – sent to all cities •Hawthorne and Inglewood may have viable projects – currently being evaluated projects totaling 120 units •Other cities have reached out to discuss interest in developing opportunities •SBCCOG will be developing programs, funding criteria, and documentation requirements for the evaluation This activity is similar to a housing trust Page 58 of 99 10 HO U S I N G T R U S T S C E N A R I O SBCCOG LACAHSA + Housing Trust Option •Without a Housing Trust - Hawthorne and Inglewood – may be limited in how we can help them •Will encourage those cities to also apply for LACAHSA agency funds •Option to wait for the Trust when a loan or other more complicated arrangement could be done – COG can only grant •Recommendation to come back at a future meeting •In order to maximize our LACAHSA funding – consider moving all LACAHSA Production, Preservation, and Ownership activities into the SBCCOG Housing Trust JPA SBCCOG LACAHSA 2025 Housing Trust2026 Page 59 of 99 11 SB C C O G L A C A H S A LACAHSA Production, Preservation, and Ownership •IF HOUSING TRUST •Housing Trust could work directly with developers on behalf of cities (pertinent for small cities) •Developers would know to come to a Trust •Cities must approve all projects funded by the Trust in their city •Benefits for all cities on LACAHSA projects •Need to increase staffing and hire consultants •NO HOUSING TRUST •Cannot implement full LACAHSA Portfolio (Loans, Acquisitions, Ownership..) •Work directly with cities, but not work with developers on behalf of cities •LACAHSA would still benefit all cities •Would still need to increase staffing and hire consultants Page 60 of 99 12 NE X T S T E P S Information You Need to Know to Decide Questions? Page 61 of 99 RESOLUTION NO. _______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AUTHORIZING THE EXECUTION AND DELIVERY OF A JOINT POWERS AGREEMENT CREATING THE SOUTH BAY REGIONAL HOUSING TRUST (SBRHT) AND APPROVING THE MEMBERSHIP OF THE CITY WHEREAS, the City of El Segundo (“City”) is a municipality duly organized and existing under the Constitution and the laws of the State of California; WHEREAS, pursuant to California Government Code Sections 6500 et seq., the City is authorized to enter into an agreement with one or more other public agencies to jointly exercise any power common to the contracting parties and to create an agency or entity which is separate from the parties to the agreement to administer the agreement; WHEREAS, as part of a Regional Early Action Planning (REAP) 2.0 project funded through SCAG, the South Bay Cities Council of Governments (SBCCOG) has been working on the development of a joint powers authority to fund housing to assist the homeless population and persons and families of extremely low, very low, and low income; WHEREAS, in 2023, SB 1444 was adopted, authorizing such a joint powers authority to be known as the “South Bay Regional Housing Trust” (Gov. Code § 6539.9); WHEREAS, the South Bay Regional Housing Trust (SBRHT) will help fund the development and construction of affordable housing units in member cities only for development projects that are supported by the city in which they are proposed; and WHEREAS, the City Council desires to enter into a joint powers agreement for the purpose of joining the SBRHT, to provide funding for affordable housing developments and construction, and to help meet housing needs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AS FOLLOWS: SECTION 1: Findings. The City Council finds and declares that the actions authorized hereby constitute and are with respect to public affairs of the City, and that the statements, findings and determinations of the City set forth in the recitals above and of the documents approved herein are true and correct. SECTION 2: Authorization. The City Manager or designee is authorized on behalf of the City, to execute the Joint Powers Agreement Creating the South Bay Regional Housing Trust (“Agreement”), attached hereto as Exhibit “A” and incorporated herein by this reference. The City Manager or designee is further authorized to take any actions needed Page 62 of 99 to effectuate this Resolution and to direct the performance of the City’s obligations under the Agreement. SECTION 3: Membership. The participation of the City as a member in the SBRHT is hereby approved. 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: Electronic Signatures. This Resolution 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 6: 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 7: Effective Date. This Resolution will take effect immediately upon adoption and will remain effective unless repealed or superseded. SECTION 8: 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, APPROVED AND ADOPTED this ____ day of February, 2026. __________________________________ Chris Pimentel, Mayor ATTEST: __________________________________ Susan Truax, City Clerk APPROVED AS TO FORM: __________________________________ Mark D. Hensley, City Attorney Page 63 of 99 EXHIBIT “A” JOINT POWERS AGREEMENT Page 64 of 99 1 | P a g e JOINT EXERCISE OF POWERS AGREEMENT of the SOUTH BAY REGIONAL HOUSING TRUST THIS JOINT EXERCISE OF POWERS AGREEMENT (the “Agreement”) is made this day of , 2026 (the “Effective Date”), by and between the public agencies listed in Exhibit A, attached hereto and incorporated herein by reference (each a “Party” and, collectively, the “Parties”). RECITALS A. The Parties are authorized to and have a strong interest in promoting the health, safety, and welfare of the residents within their geographic boundaries. B. The Parties acknowledge that the State has declared the existence of a shortage of affordable housing. C. The Parties find it in their mutual interest to increase the availability of affordable housing, workforce housing and supportive housing and to reduce homelessness in a coordinated manner on a regional level. D. An adequate supply of housing throughout the South Bay subregion will provide social and economic benefits to residents and taxpayers of the Parties. E. California Government Code section 6500 et seq. (“Joint Exercise of Powers Act” or “Act”) permits two or more public agencies to create joint powers authorities for the purposes cited herein and permits the agencies to exercise jointly any power that the public agencies could exercise separately, and further grants certain additional powers to such joint powers authorities. F. The Parties find that each of them has the individual power to implement the housing projects contemplated by this Agreement making them eligible under the Act to enter into this Agreement. G. In 2022, the Act was amended by the addition of California Government Code section 6539.9, which expressly authorizes the creation of a South Bay Regional Housing Trust by way of approval of this Agreement in order to promote public-private partnerships, nonprofit collaborations and otherwise to fund housing to assist the homeless population and persons and families of extremely low, very low, and low income as defined in Section 50093 of the California Health and Safety Code within the South Bay subregion. H. This Agreement shall not be interpreted to limit any Party’s authority over land use decision making or otherwise limit their respective sovereign powers within their respective jurisdictions. NOW, THEREFORE, in consideration of the mutual promises set forth below, the Parties agree as follows: Page 65 of 99 2 | P a g e Section 1. Creation and Purpose. (a) Creation of SBRHT. Pursuant to the Joint Exercise of Powers Act, including Government Code section 6539.9, there is hereby created a public entity to be known as the “South Bay Regional Housing Trust” (“SBRHT”). Pursuant to Section 6503.5 of the California Government Code, SBRHT shall be a public entity separate and apart from the Parties and shall administer this Agreement. (b) Purpose. This Agreement is made pursuant to the Joint Exercise of Powers Act for the purpose of creating the SBRHT as a public entity separate from the Parties to exercise common powers with respect to receiving and leveraging public and private financing and funds for the planning and construction of housing of all types and tenures for persons and families of extremely low-, very low-, and low- income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to, permanent supportive housing. The purpose of this Agreement shall be accomplished, and common powers exercised in the manner set forth in this Agreement. Nothing contained in this Agreement shall preclude any Party from establishing, maintaining, or providing social programs or services to its respective residents as it deems proper and necessary. Section 2. Term and Termination (a) Term. This Agreement shall become effective, and SBRHT shall come into existence, upon the approval of this Agreement by the governing bodies of four eligible Parties. The Effective Date will be the date of approval by the fourth Party. This Agreement shall thereafter continue in full force and effect until terminated pursuant to subdivision (b) of this section. (b) Termination. This Agreement may be terminated by agreement of a majority vote of the Parties. Upon termination of this Agreement, SBRHT shall be dissolved and, after payment of or provision for payment of all liabilities, the assets of SBRHT shall be distributed to the Parties in proportion to the contributions of each Party to SBRHT and the amounts paid by each Party in connection with SBRHT’s activities. Section 3. Powers and Duties of SBRHT. (a) General Powers. SBRHT shall have all the powers common to the Parties to this Agreement necessary or convenient, specified, or implied, to accomplish the purpose of this Agreement as set forth in Section 1, subject to the restrictions set forth in this Section 3, subdivision (c) below. Said powers shall be exercised in the manner provided in the Joint Exercise of Powers Act, including without limitation all powers set forth in Government Code section 6539.9, and, except as expressly set forth herein, subject only to such restrictions upon the manner of exercising such powers as are imposed upon the City of Torrance, a municipal corporation of the State of California, in the exercise of similar powers. (b) Specific Powers. Without limiting the generality of the powers conferred in subdivision (a) of this Section 3, SBRHT is hereby authorized, in its own name, to do all of the acts necessary or convenient to the accomplishment of the purposes of this Agreement and the full exercise of the powers conferred in subdivision (a) of this Section 3, including but not limited to the following: 1. to make and enter into contracts; Page 66 of 99 3 | P a g e 2. to hire employees or contract for staff assistance, including but not limited to contracting with other public agencies; 3. to sue and be sued in its own name; 4. to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States of America, the State of California, Los Angeles County, a Party to this Agreement, or any other agency providing funding related to the purposes of this Agreement; 5. to invest any money in the treasury pursuant to Section 6505.5 of the Joint Exercise of Powers Act that is not required for the immediate necessities of SBRHT, as SBRHT determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code; 6. to apply for letters of credit or other forms of financial guarantees in order to enter into agreements in connection therewith; 7. to incur and discharge debts, liabilities, and obligations, subject to the limitations set forth in this Agreement and to the extent permitted by law; 8. to assume ownership of affordability covenants governing a property from another entity in order to preserve the units as affordable; 9. to engage the services of private consultants to render professional and technical assistance and advice in carrying out the purposes of this Agreement; 10. to employ and compensate legal counsel determined appropriate by SBRHT in carrying out the purposes of this Agreement; 11. to contract for engineering, construction, architectural, accounting, environmental, land use, or other services determined necessary or convenient by SBRHT in connection with the accomplishment of the purposes of this Agreement; 12. for the purposes of enforcing affordable housing covenants or holding security interests for loans, to take title to, and transfer, sell by installment sale or otherwise, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which SBRHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement; 13. for the purposes of renting space for SBRHT to operate, to lease to, and to lease from, a Party or any other person or entity, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in real or personal property which SBRHT determines are necessary or convenient in connection with the accomplishment of the purposes of this Agreement; 14. to solicit charitable contributions from private sources; 15. to acquire, hold or dispose of property, contributions and donations of property, funds, services and other forms of assistance from persons, firms, corporations and government entities; Page 67 of 99 4 | P a g e 16. to partner with Parties on funding solicitations and other opportunities for the purposes set forth in this Agreement, including but not limited to jointly exercising powers with a Party pursuant to the Joint Exercise of Powers Act; 17. to authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received and pledged by the SBRHT. 18. to propose amendments to this Agreement; 19. to the extent not herein specifically provided for, to exercise any and all other powers as may be provided for SBRHT in the Joint Exercise of Powers Act or any other applicable law; and 20. to carry out and enforce all the provisions of this Agreement. (c) Limitation on Powers. This Agreement does not authorize SBRHT do any of the following: 1. Regulate land use within the jurisdiction of any of the Parties; 2. Levy, or advocate or incentivize the levying of, an exaction, including an impact fee, charge, dedication, reservation or tax assessment, as a condition of approving the funding for or approval of a development project; 3. Require or incentivize inclusionary zoning requirements; 4. Require the Parties to dedicate or assign funding for any SBRHT obligations or programs; 5. Fund or approve a housing project or program that is not supported by the governing body of the jurisdiction (a city or the county) in which the proposed project is sited; 6. Require the Parties to accept or provide any number of housing units as a prerequisite to joining or remaining a member of SBRHT; and 7. Affect the individual power of each Party separately to implement affordable housing projects and programs generated within its jurisdictional boundaries. Section 4. Members The members of SBRHT shall be the Parties to this Agreement, and such other public agencies as may join SBRHT after execution of this Agreement. New members may join on the terms and conditions set forth in Section 10 hereof. Only the County of Los Angeles and cities within the jurisdiction of the South Bay Cities Council of Governments may be a Party to this Agreement and a member of SBRHT. The SBRHT bylaws may provide for affiliate memberships or other categories of membership for eligible entities which do not want to be full members. Section 5. Board of Directors (a) Selection of Directors. SBRHT shall be governed by a Board of Directors selected as follows: 1. One elected official from each Party to this Agreement, appointed by that Party’s governing body and ratified by the governing board of the South Bay Cities Council of Governments. Each Party may also appoint one of its elected officials as an Alternate Director, who may serve in the absence of the Party’s appointed Director. The elected official from the County of Los Angeles must be from a Board of Supervisors District Page 68 of 99 5 | P a g e that is located wholly or partially within the territory of the South Bay Cities Council of Governments. 2. Two Directors that are experts in homelessness or housing policy appointed by the South Bay Cities Council of Governments City Managers Committee and ratified by the governing board of the South Bay Cities Council of Governments . (b) Board Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of SBRHT shall be vested in and exercised by, and its property and its affairs administered by, the Board of Directors. (c) Advisory Bodies. The Board of Directors may appoint advisory bodies that may include such persons as are designated by the Board of Directors. The Board of Directors shall adopt bylaws that govern the appointment of advisory bodies should it determine in its discretion to appoint such advisory bodies. (d) Compensation. Members of the Board shall serve without compensation but shall be entitled to reimbursement for any expenses actually incurred in connection with serving as Director; provided such expenses have been previously approved by the Board of Directors and incurred in accordance with any SBRHT policies or procedures governing the same. (e) Term. Members of the Board shall serve for a two-year term. There is no limit to the number of consecutive terms members may serve. In the event of a vacancy, the Party whose appointee has vacated the position shall appoint a replacement within 60 days of the effective date of the vacancy, subject to ratification by the governing board of the South Bay Cities Council of Governments. The replacement will serve out the remainder of the term of the Director that they replaced. The two Directors that are experts in homelessness or housing policy may be removed with or without cause at any time by a majority vote of the Board of Directors. (f) Meetings of the Board of Directors. 1. Call, Notice and Conduct of Meetings. All meetings of the Board of Directors, including without limitation, regular, adjourned regular, special meetings and adjourned special meetings, shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act, Government Code sections 54950 et seq. 2. Regular Meetings. Regular meetings of the Board of Directors shall be held at such dates and times as the Board may fix by resolution from time to time. If any day so fixed for a regular meeting shall fall upon a legal holiday, then such regular meeting shall be held on the next succeeding business day at the same hour, unless otherwise determined by the Board. No notice of any regular meeting of the Board of Directors need be given to the individual Directors. 3. Special Meetings. Special meetings of the Board of Directors shall be held whenever called by the Chairperson of the Board or by a majority of the Directors. Notice of special meetings shall be provided to all Parties. 4. Quorum. A majority of the seated members of the Board of Directors shall constitute a quorum at any meeting of the Board except that less than a quorum may adjourn a meeting to another time and place. Unless otherwise provided in this Agreement, Page 69 of 99 6 | P a g e actions and decisions of the Board of Directors may be taken by a majority of the quorum present at any meeting. 5. Minutes. The Board of Directors shall cause minutes of all regular, adjourned regular, and special meetings to be kept and presented to the Board for approval at a subsequent meeting. 6. Officers. The Board of Directors shall elect a chairperson and a vice chairperson from among its Directors at the first meeting held in each calendar year. In the event that the chairperson or vice-chairperson so elected ceases to be a Director, the resulting vacancy shall be filled at the next regular meeting of the Board of Directors held after such vacancy occurs or at a special meeting called for that purpose. In the absence or inability of the chairperson to act, the vice chairperson shall act as chairperson. The chairperson, or in the chairperson’s absence, the vice chairperson, shall preside at and conduct all Board of Director’s meetings. 7. Rules and Regulations. The Board of Directors may adopt, from time to time, by resolution, such rules, regulations, and bylaws for the conduct of its meetings and affairs as the Board determines is necessary or convenient. Section 6. Staff and Treasurer (a) Staff 1. SBRHT may contract with a Party or the SBCCOG for staff pursuant to Section 6(d), hire its own employees, or retain independent contractors, agents, or volunteers as the Board of Directors may deem necessary to carry out any of SBRHT’s powers, upon such terms and conditions as the Board may require, including the retaining of professional and technical assistance, provided that adequate funds are available in SBRHT’s budget and are appropriated by SBRHT therefor. 2. None of the officers, agents, or staff, if any, directly contracted by SBRHT shall be deemed, by reason of their roles or duties or contracted status, to be employed by the Parties. (b) Treasurer and Auditor/Controller. Pursuant to Government Code Sections 6505.5 and 6505.6, the Board of Directors shall appoint an officer or employee of SBRHT, or an officer or employee of a public agency that is a Party, or a certified public accountant to hold the offices of treasurer and auditor for SBRHT. Such person or persons shall possess the powers of and shall perform the treasurer and auditor functions for SBRHT required by Sections 6505, 6505.5 and 6505.6 of the Government Code, including any subsequent amendments thereto. Pursuant to Government Code Section 6505.1, the auditor and treasurer shall have charge of certain property of SBRHT. The treasurer and auditor shall assure that there shall be strict accountability of all funds and reporting all receipts and disbursements of SBRHT. The treasurer and auditor of SBRHT shall be required to file an official bond with the Board of Directors in an amount which shall be established by the Board. Should the existing bond or bonds or any such officer be extended to cover the obligations provided herein, said bond shall be the official bond required herein. The premiums on any such bonds attributable to the coverage required herein shall be an appropriate expense of SBRHT. (c) Attorney. The Board of Directors shall have the power to appoint one or more legal advisors to SBRHT who shall perform such duties as may be prescribed by the Board. Page 70 of 99 7 | P a g e (d) Administrative Services and Reimbursement of Costs. 1. The Board of Directors may contract with a Party to provide necessary administrative services to SBRHT, including the services described in Section 6(a), (b) and (c). The amount charged by the Party to provide such services to SBRHT shall be fixed by agreement between the Board of Directors and the governing body of the Party providing such services. In the absence of an agreement on costs, the Party providing services to SBRHT under this Section 6 may charge SBRHT the amounts necessary to recover the direct and indirect costs of such services. 2. If SBRHT contracts with a Party to provide SBRHT with administrative services through persons who are employees and officers of the Party, then any retirement liabilities associated with that Party’s employees and officers shall not constitute a liability of SBRHT or any other Party. This Section 6(d)(2) shall not preclude a Party providing administrative services to SBRHT pursuant to a contract with SBRHT from accounting for such salary and benefit costs when negotiating the rates that the Party will charge SBRHT for providing such services. Section 7. Financial Provisions (a) Fiscal Year. The Fiscal Year of SBRHT shall, unless and until changed by the Board of Directors, commence on the 1st day of July of each year and shall end on the 30th day of June of the next succeeding year except that the initial Fiscal Year of SBRHT shall commence on the Effective Date and end on the immediately following 30th day of June. (b) Budget. 1. General Budget. Within one hundred and twenty days (120) after the first meeting of the Board of Directors, a general budget for the first fiscal year shall be adopted by the vote of a majority of the total membership of the Board of Directors. The budget shall distinguish between administrative costs (i.e., the cost of operating SBRHT) and Program costs (i.e., the financing of the programs funded or sponsored by SBRHT). Thereafter, at or prior to the last meeting of the Board of Directors for each fiscal year, a general budget shall be adopted for the ensuing fiscal year or years by a vote of at least a majority of the total membership of the Board. 2. Expenditures for the Approved Budget. The payment of all SBRHT obligations is limited to the amount of appropriations allowed in SBRHT’s approved budget, except as it may be revised with the approval of a majority of the total membership of the Board of Directors. (c) Contributions by the Parties. 1. Administrative Cost Contributions. In consideration of the mutual promises contained herein, the Parties agree that they shall make annual contributions (each a “Fee” and collectively the “Fees”) towards the budgeted administrative costs of SBRHT as set forth in a duly adopted Board resolution. The Fees shall be assessed annually. After the first fiscal year, the Fees shall increase annually in an amount equal to the U.S. Bureau of Labor Statistics Consumer Price Index for All Urban Consumers in the Los Angeles-Long Beach-Anaheim area for the 12-month period preceding the year the Fees are assessed. Page 71 of 99 8 | P a g e Payment of the Fees shall be due within 30 days of receipt of an invoice from the SBRHT. The invoice shall indicate how the Fees were calculated. A Party's contribution to SBRHT's administrative costs shall be in the form of money, unless the Board of Directors approves another form of contribution such as services, personal property or use of real or personal property, or other in-kind contributions. The acceptance and valuation of any such non- monetary contributions may be used to offset in whole or part a Party’s contribution as determined in the sole and absolute discretion of the Board of Directors. Notwithstanding the above, after the first fiscal year the Board of Directors may establish Fees in an amount the Board of Directors deems financially prudent. 2. Program Cost Contribution. The particular programs and program budget, funded, sponsored or operated by SBRHT, as well as the level of and mechanisms for the involvement of SBRHT and each Party, in such programs and program budget, shall be determined and approved by the Board of Directors. (d) Accounts and Reports. 1. Books and Records. There shall be strict accountability of all SBRHT funds and accounts and report of all SBRHT receipts and disbursements. Without limiting the generality of the foregoing, SBRHT shall establish and maintain such funds and accounts as may be required by good government accounting practice. The books and records of SBRHT shall be open to inspection at all reasonable times by each Party and its duly authorized representatives. 2. Annual Audit. The person appointed by the Board of Directors to perform the auditor function for SBRHT shall cause an annual independent audit of the accounts and records of SBRHT and records to be made by a certified public accountant or firm of certified public accountants in accordance with Government Code section 6505. Such audits shall be delivered to each Party and shall be made available to the public. 3. Annual Financial Report. Pursuant to section 6539.9(d) of the Government Code, SBRHT shall publish an Annual Financial Report that shall describe the funds received by SBRHT and the use of such funds by SBRHT. The Annual Financial Report shall describe how the funds received by SBRHT have furthered the purposes of SBRHT. (e) Funds. Subject to the applicable provisions of any instrument or agreement which SBRHT may enter into, which may provide for a trustee or other fiscal agent to receive, have custody of and disburse SBRHT funds, the person appointed by the Board of Directors to perform the treasurer function for SBRHT shall receive, have the custody of and disburse SBRHT funds as nearly as possible in accordance with generally accepted accounting principles, shall make the disbursements required by this Agreement in order to carry out any of the provisions or purposes of this Agreement. Section 8. Amendments. (a) This Agreement may be amended or modified with the approval of two-thirds of all the Parties through formal action approving such an amendment by the Parties’ respective governing bodies. (b) No addition to, or alteration of, the terms of this Agreement, whether by written or oral understanding of the Parties, their officers, employees or agents, shall be valid or effective Page 72 of 99 9 | P a g e unless made in the form of a written amendment which is formally adopted and executed by the Parties as provided in subparagraph (a) of this Section. Section 9. Non-Liability for Obligations of SBRHT. (a) The debts, liabilities, and obligations of SBRHT shall not be considered the debts, liabilities and obligations of any of the Parties or their respective officers, employees, agents or volunteers, or the personal debts, liabilities and obligations or the Directors, officers or employees of SBRHT. 1. Indemnification. The SBRHT shall defend, indemnify and hold harmless each Party, its officers, agents, employees, representatives and volunteers (the “Indemnitees”) from and against any loss, injury, claim, lawsuit, liability, expense, or damages of any kind or nature (collectively, “Claims”) brought by a third party which arises out of or in connection with SBRHT’s administration of this Agreement, including such third party claims arising out of or in connection with any Indemnitees acting within their authorized capacity as an officer, agent, employee, representative or volunteer of SBRHT. The SBRHT’s duty to defend and indemnify under this Section shall not extend to Claims otherwise arising out of the Indemnitees’ own active negligence, omissions or willful misconduct, whether in whole or part. The SBRHT shall finance its obligation pursuant to this Subsection by establishing a liability reserve fund, and/or by purchasing commercial insurance, and/or by joining a joint powers insurance authority (JPIA) as determined by the Board. In the event the SBRHT’s financial obligations to indemnify, defend and hold harmless, pursuant to this Subsection, exceed the liability reserve fund and/or the proceeds from any applicable insurance and/or JPIA coverage maintained by the SBRHT (hereinafter “Unfunded Liability”), a Party or Parties may meet and confer with SBRHT in good faith to negotiate alternative means or mechanisms by which SBRHT may fund such Unfunded Liability; however, in no event shall the event of an Unfunded Liability relieve, limit or waive SBRHT’s obligations of indemnity or defense to each Party as first set forth above in this Section. Nothing herein shall obligate any Party to indemnify or hold harmless SBRHT for any Unfunded Liability. 2. Assignment. Each Party shall assign to the SBRHT its rights, title, and interest to recover damages from any third party for Claims arising out of this Agreement, to the extent that the SBRHT has met its obligations to defend and indemnify such Party pursuant to this Section. 3. Survival. SBRHT’s duty to defend, indemnify and hold harmless shall survive and continue in full force and effect after withdrawal of any Party from this Agreement, including as to the withdrawing Party, or termination of this Agreement for any reason with respect to any Claims that occurred before the date of such withdrawal or termination. Section 10. Admission and Withdrawal of Parties. (a) Admission of New Parties. It is recognized that additional public agencies other than the original Parties, may wish to join SBRHT after the Effective Date. The County of Los Angeles and any city within the SBCCOG may become a Party to SBRHT upon such terms and conditions as are established by the Board of Directors. As a condition precedent to becoming a Party more than six months after the Effective Date, an eligible entity may thereafter become a Party to this Agreement; provided that (1) this Agreement is adopted by its governing body and (2) the eligible entity pays a late joining fee. The late joining fee shall be calculated by Page 73 of 99 10 | P a g e totaling the annual fee the eligible entity would have paid under this Agreement had it been a Party in all years prior and up until the Effective Date. Notwithstanding the foregoing, an eligible entity’s late joining fee shall not exceed two times the amount of the applicable annual administrative fee existing at the time it becomes a Party. Payment shall be due within 30 days of receipt of an invoice from SBRHT. (b) Withdrawal from SBRHT. A Party may withdraw from SBRHT at any time upon its governing body’s adoption of a resolution stating the Party’s intent to withdraw from SBRHT and written notice of withdrawal accompanied by an executed copy of the resolution of intent to the SBRHT. The withdrawal of any Party, unless otherwise provided by the Board of Directors, shall be subject to the following prerequisites and conditions: 1. The withdrawal shall be effective immediately upon receipt by the SBRHT of the written notice of withdrawal, subject to subsection (2) below. 2. If the withdrawal notice is received by the SBRHT less than ninety (90) days before the start of a fiscal year or after the commencement of a fiscal year but before payment of that year’s Section 7(c) contribution, the withdrawal shall not be effective unless and until the withdrawing Party has fully paid that fiscal year’s contribution; otherwise, the notice of withdrawal shall be null and void. 3. Unless otherwise provided by a unanimous vote of the Board of Directors, withdrawal shall result in the forfeiture of that Party’s rights and claims relating to distribution of property and funds upon termination of SBRHT as set forth in Section 2 above. Withdrawn members shall not be entitled to any reimbursement of Fees. 4. Withdrawal of a Party will not relieve that Party of prior financial obligations of liabilities unless otherwise approved by the Board. Section 11. Notices. (a) Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to the persons and entities listed at the addresses set forth in Exhibit A, or to such other address as may be designated in writing to SBRHT for formal notice. Section 12. Miscellaneous. (a) Section Headings. The section headings herein are for convenience only and are not to be construed as modifying or governing or in any manner affecting the scope, meaning or intent of the provisions or language of this Agreement. (b) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all together shall constitute but one and the same Agreement. (c) Laws Governing. This Agreement is made in the State of California under the Constitution and laws of such State and shall be construed and enforced in accordance with the laws of California. (d) Severability. Should any part, term, portion or provision of this Agreement, or the application thereof to any person or circumstance, be held to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual it shall be deemed severable, and the reminder of this Agreement or the application thereof Page 74 of 99 11 | P a g e to other persons or circumstances shall continue to constitute the Agreement the Parties intended to enter into in the first instance. (e) Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Parties. No Party may assign any right or obligation hereunder without the written consent of a majority of the other Parties. Section 13. Sunset Date. In the event that a source of funding is not identified and funding not obtained to cover SBRHT’s administrative costs on or before December 31, 2026, this Agreement will on that date expire automatically and be null and void without further action of the Parties. IN WITNESS THEREOF, the Parties hereto have caused this Agreement to be executed and attested by their duly authorized officers as follows: (NAME OF CITY) ______________________________ BY: (NAME/TITLE OF CITY OFFICER) Dated: ___________________________ ATTEST: ___________________________________________ (NAME) City Clerk Date APPROVED AS TO FORM: By: __________________________________________ (NAME) City Attorney Date Page 75 of 99 12 | P a g e EXHIBIT A Parties to this Agreement and their Addresses for notice pursuant to Section 11 are as follows: Page 76 of 99 City Council Agenda Statement Meeting Date: February 3, 2026 Agenda Heading:Staff Presentations Item Number: D.7 TITLE: Side Letter Agreement Between the City of El Segundo and the El Segundo Firefighters’ Association Updating the Holiday Pay Provision in the Memorandum of Understanding RECOMMENDATION: 1. Adopt a Side Letter Agreement Between the City of El Segundo and the El Segundo Firefighters’ Association (“ESFA”) updating the Holiday Pay provision in the Memorandum of Understanding (“MOU”) to define the observed holidays that represent the annual hours paid to comply with Public Employees’ Retirement Law (“PERL”), Government Code 20636, and the California Code of Regulations (“CCR”) Section 571. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: None. BACKGROUND: The City and the ESFA are currently Parties to a Memorandum of Understanding (“MOU”) for the term October 1, 2023 through June 30, 2026. This MOU outlines the terms and conditions of employment for employees in the classifications of Firefighter, Fire Paramedic, Fire Engineer, and Fire Captain. Currently, there are thirty-seven (37) employees represented by the ESFA. On December 13, 2025, the City received a copy of a letter sent to an employee from CalPERS stating that the language regarding holiday pay in the MOU does not comply with the applicable statues under the California Public Employees’ Retirement Law (“PERL”), Government Code section 20636, and the California Code of Regulations (“CCR”) section 571. As a result, the pension calculation estimate would exclude the holiday pay. The Parties are interested in retroactively updating the holiday pay provision to include Page 77 of 99 Adoption of a Side Letter Agreement February 3, 2026 Page 2 of 3 the current and preceding MOU with a term of October 1, 2018 through September 30, 2021. The retroactive update to the holiday pay is in abundance of caution should CalPERS decide to review compensation provided to employees that retired under the preceding MOU. A Side Letter clarifying the holiday pay provision is attached to this report. DISCUSSION: The ESFA MOU Article 23 – Holidays, provides language regarding the Accumulation and Annual Payment of holiday pay. The current and preceding MOU have the same language in these sections with the exception that the current MOU was updated to provide payment would be made by the City through direct deposit. Until December 2025, the City was unaware of any holiday pay reportability issues for employees that retired under the current or preceding MOU. The CalPERS letter referenced above specifically stated that the holiday pay is not reportable as special compensation because there is no approved list of holidays in the MOU. Without the inclusion of the holiday pay, the employee’s anticipated pension would be reduced. On January 8, 2026, Human Resources sent the MOU Review Unit at CalPERS with a copy of the compensation compliance review estimate letter which notified one employee that CalPERS intended to disqualify the holiday pay as compensation earnable, a copy of the current and preceding MOU, and a proposed side letter to resolve the issue. Staff had additional communications with CalPERS and made suggested revisions to the proposed side letter. The side letter clarifies that the payment of the one-hundred forty-four (144) hours represents the following twelve (12) City observed holidays: New Year’s Day (January 1st), Martin Luther King, Jr. Day (3rd Monday in January), Presidents’ Day (3rd Monday in February), Memorial Day (last Monday in May), July 4th, Labor Day (1st Monday in September), Veteran’s Day (November 11th), Thanksgiving Day (4th Thursday in November), the Friday after Thanksgiving Day, Christmas Eve (December 24th), Christmas (December 25th), and New Year’s Eve (December 31st). Further clarification was provided by separating the payment of sick leave and holiday pay into two sentences. The new sentences state, “Employees shall be paid the holiday pay at the employee’s rate of pay via direct deposit annually, inclusive of November holidays, but no later than on or about December 10. Sick leave payout for eligible members shall be paid via direct deposit annually, but no later than December 10.” Other updates include: 1.) “Holiday Credit” was deleted as employees are paid out annually, not credited in a bank of hours, 2.) “Article 25.02” was deleted as a typographical error, and 3.) renumeration required to be in the regular rate of pay “under the Fair Labor Standards Act” was added to clarify what pays are included in calculating the regular rate of pay. Page 78 of 99 Adoption of a Side Letter Agreement February 3, 2026 Page 3 of 3 On January 21, 2026 the CalPERS representative provided that the holiday pay would be reportable special compensation under CCR 571 with the executed side letter and approval by the City Council. Human Resources worked closely with the ESFA on the side letter to ensure compliance for past and future retirees regarding the reporting of holiday pay. The executed side letter is provided with this staff report for City Council’s consideration. CITY STRATEGIC PLAN COMPLIANCE: Goal 4: Promote and Celebrate a Quality Workforce Through Teamwork and Organizational Excellence Strategy A: Enhance staff recruitment, retention, and training to ensure delivery of unparalleled City services and implementation of City Council policies. Strategy B: Improve organizational excellence by implementing processes and tools that facilitate data collection and analysis while promoting data-driven decision-making. PREPARED BY: Rebecca Redyk, Director of Human Resources & Risk Management REVIEWED BY: Rebecca Redyk, Director of Human Resources & Risk Management APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Side Letter between the City and ESFA Regarding Holiday Pay Page 79 of 99 Page 80 of 99 Page 81 of 99 Page 82 of 99 City Council Agenda Statement Meeting Date: February 3, 2026 Agenda Heading:Staff Presentations Item Number: D.8 TITLE: Resolution and Side Letter Agreement Between the City of El Segundo and the El Segundo Police Managers’ Association Updating the Basic Salary Schedule for the Police Lieutenant Classification RECOMMENDATION: 1. Adopt a Side Letter Agreement Between the City of El Segundo and the El Segundo Police Managers’ Association (“ESPMA”) to the Memorandum of Understanding (“MOU”) for the term October 1, 2023 through June 30, 2026 updating the basic salary schedule for Police Lieutenant classification. 2. Adopt a Resolution Modifying the Basic Salary Range for the Police Lieutenant classification. 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The fiscal impact of the proposed salary and benefit changes to update the Police Lieutenant's basic salary range is approximately $34,900 for FY 2025-26. Additional Appropriation: Staff is requesting an additional appropriation of $34,900 in FY 2025-26 from General Fund Reserves for implementing the terms of the salary and benefit changes for the Police Lieutenant classification. Account Numbers: $34,900 to 001-509-3102-2-54101 BACKGROUND: The classifications in the represented sworn law enforcement series include (in order of rank): Police Captain, Police Lieutenant, Police Sergeant, and Police Officer. The Captain and the Lieutenant are represented by the ESPMA while the Sergeant and the Officer are represented by the El Segundo Police Officers’ Association (“ESPOA”). Page 83 of 99 Adoption of a Resolution and Side Letter Agreement February 3, 2026 Page 2 of 3 The City and the ESPMA are currently Parties to a Memorandum of Understanding (“MOU”) for the term October 1, 2023 through June 30, 2026 which includes language regarding salary compaction and compensation for classifications they supervise. The ESPOA entered into a new MOU for the term July 1, 2025 through June 30, 2029 which provided for a four percent (4%) base salary increase effective December 13, 2025.The ESPMA salaries have reached the maximum available in the approved salary schedule for the term of this MOU. Any increases to salaries to maintain the targeted salary compaction compensation levels would require City Council approval and a resolution to comply with CalPERS regulations. DISCUSSION: The ESPMA includes seven (7) members: two (2) Police Captains and five (5) Police Lieutenants. ESPMA MOU, Article 2, Section 8 Compaction Statement of Intent and Section 10 Salary Differential Upon Promotion include language regarding the difference in pay between supervisors and subordinates. Section 8 states, “The City strives to compensate affected employees to a reasonable level above the classification they supervise. Additionally, the City strives to compensate Captains at a reasonable level above Lieutenants. Typically, a difference of five percent (5%) is targeted, with the specific percentage determined by internal and external comparability data, City finances, and other labor relations factors and consideration.” Section 10 states, “In all cases where an affected employee is promoted to a classification covered by this MOU for which a higher rate of compensation is provided, then such employee shall receive the lowest rate of compensation which exceeds by not less than the five percent (5%) the base rate of compensation, including longevity, educational incentive, special assignment, and bilingual pay received by the employee in the lower classification at the time of their promotion. All supervisors shall be paid a higher base salary than any of their regularly assigned subordinates (inclusive of longevity, educational incentive, special assignment, and bilingual pay). In the event that a supervisor is paid a base salary equal to or lower than one of their regularly assigned subordinate’s base salary, the supervisor shall be granted a higher base salary (inclusive of longevity, educational incentive, special assignment, and bilingual pay) even if the supervisor’s new base salary is not the same as an existing pay step in the Salary Schedule. Notwithstanding the above, the supervisor’s salary shall not exceed the salary range for which they are eligible by length of service and performance.” On December 17, 2025, members of the ESPMA and Human Resources met to discuss Page 84 of 99 Adoption of a Resolution and Side Letter Agreement February 3, 2026 Page 3 of 3 the MOU sections above as they related to the newly approved ESPOA MOU. Both Parties provided their interpretations of the current MOU language. On January 14, 2026, we met again to discuss the issue at hand and agreed that the language should be clarified in the upcoming labor negotiations for a successor MOU. With the recent four percent (4%) ESPOA salary increase, the Lieutenant and Sergeant ranks are now less than the typical targeted five percent (5%) above that the City strives to compensate its supervisors in the ESPMA. Historically, employees promoted to the Police Lieutenant classification are not placed at the first step. The City has proposed to eliminate the first step in the salary schedule (an unused step) and replace it with an additional step at the top of the range. Moving the five Lieutenants to this newly created salary step will achieve the targeted five percent (5%) differential. A Side Letter outlining this item is attached to this report for City Council’s consideration. If approved, Human Resources will work with Finance to implement the salary changes. CITY STRATEGIC PLAN COMPLIANCE: Goal 4: Promote and Celebrate a Quality Workforce Through Teamwork and Organizational Excellence Strategy A: Enhance staff recruitment, retention, and training to ensure delivery of unparalleled City services and implementation of City Council policies. PREPARED BY: Rebecca Redyk, Director of Human Resources & Risk Management REVIEWED BY: Rebecca Redyk, Director of Human Resources & Risk Management APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Side Letter Agreement with PMA 2. Resolution Modifying the Basic Salary Range 3. Exhbit A Page 85 of 99 Page 86 of 99 Page 87 of 99 RESOLUTION NO. _________ A RESOLUTION MODIFYING THE BASIC SALARY RANGE FOR A FULL-TIME JOB CLASSIFICATION The City Council of the City of El Segundo does resolve as follows: SECTION 1: Effective February 7, 2026, the City Council approves the following basic salary range: Classification Salary Range Police Lieutenant $91.07 - $110.69 Hourly In addition, the City Council approves the salary steps for each classification in the Administrative Support Series, as described in the attached Exhibit “A,” which is incorporated herein by this reference. SECTION 2: Authority. The City Manager or his designee is authorized to take any steps necessary to effectuate this Resolution. SECTION 3: Construction. This Resolution must be broadly construed to achieve the purposes stated in this Resolution. 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 Resolution. 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 Ordinance are severable. SECTION 5: The City Clerk is directed to certify the adoption of this Resolution; record this Resolution in the book of the City’s original resolutions and make a minute of this adoption of the Resolution in the City Council’s records and the minutes of this meeting. SECTION 6: This Resolution will become effective upon adoption and will remain effective unless repealed or superseded. PASSED AND ADOPTED this 3rd day of February, 2026. ____________________________________ Chris Pimentel, Mayor Page 88 of 99 Exhibit A to Resolution ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Susan Truax, 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 _____, 2026, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________ Susan Truax, City Clerk APPROVED AS TO FORM: ____________________________ Mark D. Hensley, City Attorney Page 89 of 99 POLICE MANAGEMENT ASSOCIATION (PMA) PAY SCHEDULE Effective the pay period starting February 7, 2026 PMA Police Management Association EFFECTIVE DATE SALARY REVISION EFFECTIVE DATE AGREEMENT NUMBER JOB CLASS TITLE GROUP BU GRADE PAY TYPE HOURLY MONTHLY ANNUAL 2/7/2026 2/3/2026 Police Lieutenant ESPMA 56P Hourly 91.07 15784.78 189417.3895.62 16574.02 198888.19 100.40 17402.72 208832.62 105.42 18272.86 219274.26 110.69 19186.49 230237.887/1/2025 7/1/2025 Police Captain ESPMA 61P Hourly 101.36 17569.70 210836.41106.43 18448.19 221368.31111.75 19370.60 232447.24 117.34 20339.12 244069.49 123.21 21356.08 256272.99 Exhibit A Page 90 of 99 City Council Agenda Statement Meeting Date: February 3, 2026 Agenda Heading:Staff Presentations Item Number: D.9 TITLE: Resolution Updating Salary and City Contribution Towards Medical Premiums for the Police Officer Trainee Classification RECOMMENDATION: 1. Adopt a resolution updating salary and City contribution towards medical premiums for the Police Officer Trainee classification. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The fiscal impact of the updated salary and various benefits for the unrepresented Police Officer Trainee classification for the remainder of FY 2025-2026 is approximately $6,690. This total fiscal impact includes two (2) Police Officer Trainee incumbents and one (1) additional budgeted position. The fiscal impact can be absorbed through salary savings from the vacant budgeted position. BACKGROUND: On February 21, 2017, Resolution No. 5025 set the base salary of the Police Officer Trainee at an hourly rate equal to eighty percent (80%) of the Police Officer salary range and provided benefits for retirement, health, dental, vision, and sick and vacation leaves. On October 1, 2024, Resolution No. 5517 updated the salary and benefits for the Police Officer Trainee classification. The City and the Police Officer’s Association (“POA”) are Parties to a successor Memorandum of Understanding (“MOU”) for the term July 1, 2025 through June 30, 2029 which includes increases to salary and contributions towards health insurance. This report includes a Resolution to update the Police Officer Trainee salary and City contribution towards medical premiums. Page 91 of 99 Adoption of Updated Salary and Various Benefits for the Police Officer Trainee Classification February 3, 2026 Page 2 of 3 DISCUSSION: The Police Officer Trainee classification is a probationary non-sworn (miscellaneous) classification that is not represented by any bargaining unit. Police Officer Trainees must serve a limited-term appointment typically lasting six (6) months, and, upon successful completion of the Police Academy, may be appointed to a probationary sworn (safety) Police Officer classification which is represented by the POA. The established salary for the classification was set at eighty percent (80%) of the Police Officer salary. Health, dental, vision and life insurance benefits, as well as sick and vacation leave accruals, align with those provided under the POA MOU. The Police Officer Trainee does not receive any other benefits (i.e., special pays) provided under the POA MOU unless and until they are appointed to a sworn Police Officer position. Currently, there are two (2) Police Officer Trainees attending the Police Academy and one (1) additional budgeted vacancy. Upon graduation from the Police Academy, the Trainees are appointed to a sworn Police Officer position. The unrepresented Police Officer Trainee classification does not participate in a meet and confer labor negotiations process as is customary with the represented employees in bargaining units (i.e.- POA). While Resolution No. 5025 initially established a link between the Police Officer Trainee and Police Officer salaries and some of their benefits, it is only updated with a successor Resolution. It is not an automatic increase. The last adjustment was made in October 2024. Updating the salary to reflect the previously approved range set at eighty percent (80%) of Police Officer will recognize the responsibilities of the position and provide the City with a more competitive edge in recruitment efforts. The City Council adopted Resolution No. 5575 approving the successor POA MOU on December 3, 2025, which includes a four percent (4%) salary increase effective December 13, 2025, and an increase to the City contribution of up to fifty dollars ($50) per month towards medical premiums. The Resolution attached to this report includes a salary range adjustment for the Police Officer Trainee effective February 7, 2026, along with a second salary range adjustment to align with the POA increase effective June 27, 2026. Upon City Council approval, Human Resources will process salary increases for the current Police Officer Trainees and post the salary on the publicly available schedule on the City’s website as required by CalPERS. CITY STRATEGIC PLAN COMPLIANCE: Goal 4: Promote and Celebrate a Quality Workforce Through Teamwork and Organizational Excellence Page 92 of 99 Adoption of Updated Salary and Various Benefits for the Police Officer Trainee Classification February 3, 2026 Page 3 of 3 Strategy A: Enhance staff recruitment, retention, and training to ensure delivery of unparalleled City services and implementation of City Council policies. PREPARED BY: Rebecca Redyk, Director of Human Resources & Risk Management REVIEWED BY: Rebecca Redyk, Director of Human Resources & Risk Management APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Resolution Establishing Updated Salary and Various Benefits for Police Officer Trainees 2. Exhibit A to Resolution 3. Exhbit B to Resolution Page 93 of 99 RESOLUTION NO.__________ A RESOLUTION ESTABLISHING UPDATED SALARY AND VARIOUS BENEFITS FOR POLICE OFFICER TRAINEES The City Council of the City of El Segundo does hereby resolve as follows: SECTION 1: Classification. The Police Officer Trainee classification is a probationary non-sworn classification that is not represented by any bargaining unit. Police Officer Trainees must serve a limited-term appointment, and, upon successful completion of the Police Academy, may be appointed to a probationary sworn Police Officer classification which is represented by the Police Officers’ Association (“POA”). SECTION 2: Base Salary. A. The City of El Segundo (“City”) previously approved and adopted Resolution No. 5517 on October 1, 2024 providing for salary and benefits for the Police Officer Trainee classification. The base salary was established at an hourly rate of eighty percent (80%) of the Police Officer salary range. Benefits provided to this position for retirement, health, dental, vision along with sick and vacation leaves were provided at the same level as the Police Officer classification. B. The City seeks to update the Police Officer Trainee classification base salary hourly rate of eighty percent (80%) of the Police Officer salary range to align with recent updates to the Police Officer salary range. C. Accordingly, the Police Officer salary range is updated and will take effect as follows: 1. Effective February 7, 2026, the Police Officer Trainee classification base salary shall be as set forth in Exhibit “A” to this Resolution, which is attached hereto and incorporated by this reference. Such base salary will be equal to eighty percent (80%) of the Police Officer salary range effective as of December 13, 2025. 2. Effective June 27, 2026, the Police Officer Trainee classification base salary shall be as set forth in Exhibit “B” to this Resolution, which is attached hereto and incorporated by this reference. Such base salary will be equal to eighty percent (80%) of the Police Officer salary range effective as of June 27, 2026. SECTION 3: Retirement Plan. The classification of Police Officer Trainee shall participate in the California Public Employees’ Retirement System (“CalPERS”) Miscellaneous coverage group as follows: A. Classic Members- 2%@60. This formula shall apply to Police Officer Trainees hired on or after December 30, 20212 who are otherwise not a “new employee” and/or “new member” of CalPERS under Government Code section 7522.04 also Page 94 of 99 known as the California Public Employees’ Pension Reform Act of 2013 (“PEPRA”). Employees shall be responsible for paying the statutorily mandated employee CalPERS contribution. B. New Members- 2%@62. This formula shall apply to “new employees” and/or “new members” as defined by PEPRA. Employees shall be responsible for paying the statutorily mandated employee CalPERS contribution. C. Attainment of Sworn Status- Upon successful completion of the Police Academy, the Police Officer Trainee may be appointed to a sworn Police Officer classification and participate in the CalPERS Safety coverage group with applicable retirement formula. SECTION 4: Benefits. Police Officer Trainees shall be offered the following benefits: A. Health Insurance- Employees shall receive the same monthly medical contribution offered to members of the POA and shall be eligible to enroll in the same medical plans offered to POA. For 2026, the City monthly medical contribution is $1,850. Effective January 1, 2027, the City monthly medical contribution increases to $1,900. B. Optical, Dental and Life Insurance- Employees shall receive the same monthly medical contribution offered to members of the POA. The City’s monthly contribution shall not exceed $184.25. Premiums shall be paid in the following order of precedence: Optical, Life, and Dental insurance. C. Other Benefits- Employees are eligible to enroll in the City’s Flexible Spending Account, Dependent Care Account, Deferred Compensation, and Long-Term Care programs. All associated costs or contributions shall be borne by the employee. SECTION 5: Leave. Police Officer Trainees shall accrue Sick and Vacation Leave as follows: A. Sick Leave- Employees shall accrue Sick Leave at the rate of eight (8) hours per month. B. Vacation Leave- Employees shall accrue vacation hours per pay period according to the schedule below based on length of City service. Vacation Leave may only be taken after successful completion of the Police Academy. Years of Service Annual Accrual Rate Accrual Per Pay Period 0-5 96 hours 3.69 hours 6-10 120 hours 4.61 hours 11-15 144 hours 5.53 hours 16+ 176 hours 6.76 hours Page 95 of 99 SECTION 6: Repeal. All resolutions and other actions of the City Council in conflict with the contents of this Resolution are hereby repealed. SECTION 7: 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 8: City Clerk Direction. The City Clerk is directed to certify the adoption of this Resolution; record this Resolution in the book of the City’s original resolutions and make a minute of this adoption of the Resolution in the City Council’s records and the minutes of this meeting. SECTION 9: Effective Date. This Resolution will become effective immediately and will remain effective unless repealed or superseded. PASSED AND ADOPTED this 3rd day of February, 2026. ________________________________ Chris Pimentel, Mayor Page 96 of 99 ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Susan Truax, 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 _____, 2026, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________ Susan Truax, City Clerk APPROVED AS TO FORM: ____________________________ Mark D. Hensley, City Attorney Page 97 of 99 CITYWIDE PUBLIC PAY SCHEDULEREVISION DATE - FEBRUARY 7, 2026 Part-Time Hourly Pay Schedule EFFECTIVE DATE SALARY REVISION EFFECTIVE DATE AGREEMENT NUMBER JOB CLASS TITLE GROUP BU GRADE PAY TYPE HOURLY MONTHLY ANNUAL 2/7/2026 2/3/2026 Police Officer Trainee Unrepresented 687-t Hourly 38.91 6744.86 80938.32 40.86 7082.32 84987.8442.91 7437.08 89244.9645.05 7809.15 93709.80 47.30 8198.53 98382.3652.03 9019.10 108229.20 Exhibit A Page 98 of 99 CITYWIDE PUBLIC PAY SCHEDULE REVISION DATE - JUNE 27, 2026 Part-Time Hourly Pay Schedule EFFECTIVE DATE SALARY REVISION EFFECTIVE DATE AGREEMENT NUMBER JOB CLASS TITLE GROUP BU GRADE PAY TYPE HOURLY MONTHLY ANNUAL 6/27/2026 2/3/2026 Police Officer Trainee Unrepresented 687-t Hourly 40.47 7014.54 84174.48 42.49 7364.98 88379.76 44.62 7734.16 92809.92 46.86 8122.10 97465.20 49.19 8525.90 102310.80 54.11 9379.63 112555.56 Exhibit B Page 99 of 99