1997 AUG 05 CC PACKET - 2EL SEG UNDO CITY COUNCIL MEETING DATE: August 5,1997
AGENDA ITEMSTATEMENT AGENDA HEADING: New Business City Manager
AGENDA DESCRIPTION:
Revenue Collection Enhancement Action Plan
RECOMMENDED COUNCIL ACTION.•
1. Discussion
2. Authorize the release of an RFP for Business License Audit Services
3. Ratify and authorize the Mayor to execute the previously approved contract with HdL Coren & Cone for Property Tax and
authorize the addition of Documentary Transfer Tax Services.
4. Establish a deposit to be collected from water utility account customers, who have been temporarily disconnected for non-
payment, or who have paid with non - sufficient funds (NSF) checks, or who have allowed their accounts to run delinquent three
times within the past eighteen months.
INTR OD UCTION AND BACKGROUND:
As in the past, it is appropriate and cost effective to perform audits of businesses operating in the City to determine conformance
with the City's various revenue generating programs. These programs are in addition to City staff efforts in field inspections and
the review of information submitted by taxpayers along with their Business License Renewal forms.
The following is a discussion of the action plan organized by revenue source.
DISCUSSION.•
Business License S920 000 Annual Budget Estima te
Staff has written a Request For Proposals (RFP) for Business License Tax Audit Services. The scope of these audit services will
include selecting a sample of Business License Tax Returns, and auditing them for accuracy of reporting, along with supporting
staff efforts in the identification of unlicensed businesses. The services will also include, a report to City Management
recommending improvements to the Business License Section of the El Segundo Municipal Code, automated cross reference tools
designed to detect non - compliance, and recommendations on how to improve the City's business license operating procedures.
Budget
Staff recommends approving a contract with HdL Coren & Cone (HdL) for Property Tax and Documentary Transfer Tax services.
On June 4, 1996, the City Council authorized the City to contract for Property Tax Auditing Services with this firm. Based upon
Council action, HdL was engaged pending final execution of the attached contract which has been reviewed by the City Attorney.
HdL's efforts to date have located over $50,000 of additional property tax revenue for the City which will well pay for the
contingency fee arrangement, including a not to exceed cap, agreed to by HdL and the City. HdL is also recommended to perform
Documentary Transfer Tax Services for a contingency fee arrangement of 15 %. Since this involves familiarity with the property
tax rolls, HdL is a logical fit for this service. Their 15% contingency arrangement is very competitive. An alternate quote for
these services was for a 25% contingency fee.
Continued-
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Discussion Continued.
.ales Tax $ 5 400 000 Annual Budget Estimate and Utility Users Tax $4.430.000 Annual Budget
s 'm
The City currently has an existing contract with Municipal Resource Consultants (MRC) for Sales Tax and Utility Users Tax
Auditing Services and no change in this contractual arrangement is recommended. MRC provides the City with sales tax data
that is not only useful to the Finance Department, but the Economic Development and Planning Departments as well. Their
analysis tools have been developed to focus on point of sale versus pooled allocation, a specialty that benefits large employment
centers such as El Segundo. The City of El Segundo has averaged an additional $46,000 of sales tax per quarter while utilizing
MRC. The amount of these services were $10,930.00 in FY 1996/97.
MRC is considered the industry leader in Utility Users Tax Services, representing over 70% of the cities in California with a
Utility User Tax.
Franchise Fees Annual Budget Estimate $1.475.000
Staff intends to work with the City Attomey reviewing all of the existing Franchise Fee agreements and recommend any revisions
that should be negotiated when those agreements come up for renewal. This project would take place gradually over the next
eighteen months. In many instances legal constraints limit the City's options. However, where terms and conditions can be
enhanced to protect the City, such changes will be recommended. It should be noted that many changes in franchise revenue are
occurring with deregulation in telephone, gas, and now electricity. A consortium of cities is working with MRC on both
Franchise and UUT issues and potential changes may be brought forward as the study progresses.
Transient OccupancyTax Annual Estimated Budget $1.900.000
Staff recommends performing Transient Occupancy (TOT) audits on a random schedule. Finance staff intends to work with the
City Attorney to clarify certain municipal code interpretations relating to the areas of federal government exemptions and AB
3407, before engaging a firm to perform audit services. An RFP for TOT Audit services should next be issued in 1998. Focused
audits were performed in 1995 on five hotels.
ditional Items for Consideration
Section 14.04.020(1) of the El Segundo Municipal Code authorizes the Finance Director to collect a deposit from water utility
customers who are not bona fide property owners, equal to one billing period's ( two months) bill. Property owners are not
required to submit a deposit. The current deposit collected from renters is $10.00.
The purpose of this item is to advise the City Council that consistent with the municipal code, the deposit will be increased to
$36.00 from new residential renters. For business customers who are renters, staff will compute their deposits on an individual
basis by averaging the last three billing periods where there was normal usage. This more adequately meets with the municipal
code's intention of covering the closing bill.
Staff recommends that the City Council establish a policy where a reconnect deposit equal to one billing period's bill (currently
$36.00) would be required from owners who have been temporarily disconnected for non - payment, owners who make payment
with an NSF check, or owners whose accounts have run delinquent three times within the past eighteen months. The current
collection efforts are costly. This deposit policy would serve as a deterrent and partial protection against future delinquencies and
bad debts both of which adversely impact the prompt paying customers.
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Discussion Continued...
Increased Collection Authority
Staff will also bring back to the City Council additional alternatives for consideration, including possible citation authority for the
new Revenue Inspector's position.
Conclusion
This report outlines specific decisions and actions by revenue source. These are key initial steps intended to increase collections
and develop more reliable information for revenue forecasting, economic development, and future strategic actions. The revenue
sources listed here comprise 75% of the City's General Fund Revenue, and represent the areas where staff focuses most of their
attention. Proper and timely collection of the City's main revenue sources, will insure full compliance with the revenue sections
of the El Segundo Municipal Code.
ATTACHED SUPPORTING DOCUMENTS:
Request For Proposal For Business License Tax Auditing Services
Proposed Contract with HdL Coren & Cone
FISCAL IMPACT.•
(Check one) Operating Budget: _I Capital Improv. Budget:
Amount Requested:
Account Number:
Appropriation Required - Yes No I
ORIGINATED BY.• Date:
`� 7 3d '7 7
Eunice Zra"mer, Director of Finance /
BY.•
City Manager
ACTION TAKEN:
Date:
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CITY OF EL SEGUNDO
REQUEST FOR PROPOSAL
August 1997
BUSINESS LICENSE TAX AUDIT
Section A
The City of El Segundo is soliciting proposals for audit consulting services related
to enforcement of the City's business license tax ordinances. The services required are set
forth in the specifications and standards set forth in Section C "Statement of Work."
Proposals will be evaluated on the factors contained in Paragraph 9 (Evaluation of Proposals)
in Section "B ", Special Terms and Conditions.
The City reserves the right to make an award without negotiation. For this reason, all
offerors should submit their best offer. The City also reserves the right to award a contract
to the offeror determined to be the most advantageous and in the City's best interest, price
and other factors considered.
Proposals must be received no later than Thursday, September 4, 1997 at 11:00 AM in order
to be considered. Questions regarding the solicitation must be addressed to the undersigned.
Proposals are to be submitted in writing to:
City of El Segundo
Donna Kreter, C.P.A.
Assistant Director of Finance
350 Main Street
El Segundo CA 90245
This Request for Proposal does not commit the City of El Segundo to award a contract, nor
pay for any costs incurred in the preparation of a proposal in response to this request. The
City reserves the right to accept or reject any or all proposals received as a result of this
request, to negotiate with any qualified source or to cancel in part or in its entirety this
Request for Proposal if it is determined to be in the best interest of the City.
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SECTION B
SPECIAL TERMS AND CONDITIONS
PRICING OF PROPOSAL
The offeror's rate of compensation shall be valid for a period of 90 days from the
proposal closing date.
2. SIGNATURE
All proposals must be signed with the firm name and by an authorized officer or
employee of the firm. Obligations committed to by such signatures must be fulfilled
by the firm.
3.1 Any proposal received at the office designated in the solicitation after the
exact time specified for receipt will not be considered unless it is received
before award is made, and:
3.1.1 It was sent by mail and is determined by the City that the late receipt
was due solely to mishandling by the City after receipt at the City; or
3.1.2 It is the only proposal received.
• miPFAVATKIM
4.1 The contract will be awarded to the responsible, responsive offeror whose
offer conforms to the solicitation and which will be, in the opinion of the City,
the most advantageous to and in the best interest of the City, price and other
factors considered.
4.2 The City reserves the right to reject any and all offers, to waive informalities
and minor irregularities in offers received, and to accept other than the lowest
offer.
4.3 The City may accept any item or group of items of any offer, unless the
offeror qualifies their proposal by specific limitations.
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All proposals become the property of the City of El Segundo. If any proprietary
information is contained in or attached to the written proposal, it must be clearly
identified. Offerors are reminded that once a contract has been awarded, all
proposals become a matter of public record.
The form of the contract which will be utilized for the services contemplated by
this Request for proposals is attached here to as Exhibit A. Any term or condition
of the contract which offeror objects to or desires to modify in any way must be
noted in the offeror's proposal and offeror must specifically set forth any requests
for modifications.
ICI _ • • s UV 441 k to _
The firm selected for award shall provide the City the services for a period of one
(1) year from the date of the agreement, with two one year options to renew.
►t1UIC M '•••• .
Each offeror shall submit five (5) copies of the Proposal.
9. SUBMISSION OF PROPOSALS
Proposals shall be submitted in a format which generally conforms to the
following:
9.1 Technical Proposals
9.1.1 Understanding the Objective
The proposal must include in detail, duration and extent of
the consultant's experience with emphasis placed on those
qualifications to which this proposal relates.
Resumes of all staff assigned to this project are required.
The consulting firm must provide fully competent and
professional personnel to effectively carry out each
assignment. The consulting firm will be required to provide
information on the experience, qualifications, and other
pertinent facts that reflect the ability and competency of its
personnel to effectively perform this work.
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The proposal must include references for at least four clients
for whom similar services were provided by the offeror
within the last two years. List in detail the services provided
for each client and in what capacity.
9.1.2 Project Management Plan
Offerors shall submit a detailed plan demonstrating
how the project will be managed in all aspects. The
plan shall include proposed coordination activities
among various program elements of the project.
9.1.3 General Guidelines For Content
The proposal should enable City management
personnel to make a thorough evaluation of the offer
to determine that the proposal meets the City's
requirements. The proposal should be so specific,
detailed and complete as to clearly and fully
demonstrate that the offeror has a thorough
understanding of City requirements and the
knowledge, background and capabilities to meet
those requirements.
The City is desirous of a fixed fee arrangement for the compliance/business
education portion of the audit. The City will consider a contingency fee
arrangement for the increased revenues generated by the required activities.
However, the City requires proposers to quote a not to exceed fee for
recovery from any single business.
10. EVAT UATiON OF PROPOSALS
The factors listed below will be considered in the evaluation of the offeror's
proposal. The proposal should give clear, concise information in sufficient detail
to allow evaluation based on these factors. Although some of the elements listed
below will be weighted more heavily than others, all factors are considered
necessary for evaluation of technical acceptability. An offeror must, therefore, be
technically acceptable in all areas to be eligible for award of a contract. The
overall cost to the City will be evaluated.
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The degree of its importance will increase in proportion to the degree of, equality
between competing proposals in relation to the other factors on which selection is
to be based.
Based upon initial evaluation, offerors considered technically
acceptable may be invited to make an oral presentation to the City prior
to selection of an offeror for award.
10.1 Understanding of the Proposal
Proposals will be evaluated using the following criteria:
(1) Responsiveness. The extent to which a proposal clearly addresses all
of the elements of this request for proposal is a key criterion. A
professional, competent response is essential.
(2) Professional Experience. The demonstrated capability of the
proposer and its staff to perform services of this type and complexity
will be a significant factor in the proposal evaluation.
(3) Governmental Experience. Prior experience with governmental
agencies will be a significant factor in the proposal evaluation.
(4) Conflicts of Interest. Full disclosure of any potential conflicts of
interest in terms of any services contracted for in this agreement is
essential. No proposal will be considered unless it addresses to the
satisfaction of the City how any potential conflicts of interest will be
resolved.
10.2 Corporate Qualifications
The offeror shall demonstrate sufficient staff and other resources dedicated to
this project to accomplish the work in the time specified/proposed and to a
quality level satisfactory to the City. Offerors should provide information that
enables the City to evaluate the proposer's ability to complete the proposed
work. The breadth and depth of the firm's experience in the performance of
comparable projects will be evaluated. Demonstrated knowledge of the
primary issues of the work is essential.
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10.3 Qualifications
The education and technical experience of the offeror and project
managers will be a major factor in evaluating the qualifications of the
offeror as they relate to the requirements set forth in Section C. Please
include with your proposal the resumes of all key personnel associated with
the engagement.
10.4 C'omi2ensation Rate
The compensation rate will be evaluated for the maximum benefit to the
City. The cost evaluation will consider not only the proposed
compensation rate, but also the incentives to the City that the proposed
plan will provide throughout the performance of the program.
10.5 Interviews
The City reserves the right to interview any or all firms who submit
proposals in order to assist in the evaluation process.
11. NON - CONFORMING PROPOSALS
Any proposal which does not comply with the requirements of this Request For
Proposal (RFP) may be considered non - conforming and ineligible for
consideration. Failure to comply with technical requirements, and failure to
acknowledge receipt of amendments (if any) are common causes for holding
proposals to be nonconforming.
12. DUTY TO INQUIRE
Should an offeror find discrepancies in, or omissions from the RFP specifications,
schedules or other documents, or should the offeror be in doubt as to their
meaning, the offeror shall at once notify the City of El Segundo Department of
Finance in writing. Should it be found by the City that the issue in question is not
clearly and fully set forth in the RFP, a written Addendum will be sent to all firms
receiving the RFP documents. The City will not be responsible for and offerors
are cautioned not to rely on any oral instructions nor for any written materials
provided by any person other than the City of El Segundo Finance Department.
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13. EXPLANATION TO OFFERORS
Any explanation desired by an offeror regarding the meaning or interpretation of
the solicitation must be requested in writing with sufficient time allowed for the
reply to reach offerors before the submission of their proposals. Oral explanations
or instructions will not be binding upon the City. Any information provided to any
prospective offeror concerning the solicitation will be furnished to all prospective
offerors in an amendment to this RFP.
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SECTION C
STATEMENT OF WORK
BACKGROUND
The City of El Segundo is located 14 miles southwest of downtown Los Angeles,
adjacent to the Los Angeles International Airport. The City was incorporated January
18, 1917, as a general law city. With a daytime population estimated at 70,000
persons, El Segundo is an employment center of regional and statewide significance.
The local economy has long been anchored by the petroleum and aerospace
industries. However, the City Council's Economic Development Program is
beginning to diversify the City's business structure.
Business License Tax revenue accounts for just under $10,000,000 or 30% of the
City's General fund. In light of the importance of this source of revenue to the City
of El Segundo, the City desires an audit that will bring about fair and equitable
compliance with the City's business license ordinances, while educating the City's
valuable business community.
2. SCOPE OF SERVICES - BUSINESS LICENSE TAX
2.1 Implement an audit program that will identify and bring into compliance
unlicensed business.
2.2 Represent the City for the purposes of examining records supporting the
business license tax returns of an agreed upon sampling of the City's
businesses.
2.3 Provide additional assistance as necessary to support the City in recovering
and preventing tax deficiencies.
2.4 Deliver to the City a report recommending improvements to the business
license tax sections of the El Segundo Municipal Code. Pay particular
attention to the areas of consistency, equitableness, and ease of administration.
2.5 Make written recommendations to management regarding operating
procedures that will increase day to day enforcement efforts and detect
unlicensed and under reporting businesses.
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CONFLICTS OF INTEREST
Full disclosure of any potential conflicts of interest in terms of any services
contracted for in this agreement is essential. No proposal will be considered unless
it addresses to the satisfaction of the City how any potential conflicts of interest
will be resolved.
IV. ADMTNISTRATION
The Contractor shall deliver all reports, documents, minutes and other material
required hereunder to the City of El Segundo Department of Finance. The
City of El Segundo shall provide approvals and assignments to the Contractor
within the scope of this contract.
V. FACILITIES
All space and clerical support for the contractor's services will be the responsibility
of the contractor. The City will not provide such facilities.
VI. SCHEDULE OF EVENTS
Activity Date
Release of RFP to Vendors August 6, 1997
Proposals Due September 4, 1997
Staff Evaluations of Proposals September 15, 1997
Vendor Notification of Selection September 26, 1997
Approval of Contract October 7, 1997
The City reserves the right to amend the schedule of events without notice.
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Agreement Between the City of El Segundo and HdL Coren & Cone
This Agreement is made and entered into as of the day of , 1997 by and
between the CITY OF EL SEGUNDO, a municipal corporation hereinafter called CITY, and
HdL Coren & Cone, a California Corporation hereinafter called CONTRACTOR.
RECITALS
WHEREAS, property tax revenues can be verified and potentially increased through a system
of continuous monitoring, identification and reconciliation to county records; and
WHEREAS, an effective program of property tax management will assist the CITY in fiscal,
economic and community development planning; and
WHEREAS, CITY desires the property tax data based reports and data analysis required to
effectively manage the CITY property tax base and identify and recover revenues misallocated
within the CITY or to other jurisdictions; and
WHEREAS, CONTRACTOR has the programs, equipment, data and personnel required to
deliver the property tax services referenced herein;
NOW, THEREFORE, CITY and CONTRACTOR, for the consideration hereinafter
described, mutually agree as follows:
DEFINITIONS
Data Base: A computerized listing of property tax parcels and information
compiled for CITY from information provided by the County
Property Tax Roll: The assessed values of parcels on the lien date as reported by the
County.
T'RA: Tax Rate Area
SERVICES
The term of this Agreement shall commence on July 1, 1996 and shall expire on June 30,
2000 unless it is extended in a writing approved by the CITY and CONTRACTOR.
A. The CONTRACTOR shall perform the following services annually, and prior to
. of each year after the Property Tax Roll is available:
1. CONTRACTOR shall establish a Data Base for CITY and install on
a personal computer or network located at the CITY.
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2. Utilizing the Data Base, CONTRACTOR will provide:
a.
A listing of the properties in excess of square feet in
the CITY, including the assessed value of their property;
b.
A listing of the properties in the CITY which have a value in
excess of $ , including an estimate of the property
taxes assessed;
C.
A listing of property tax transfers which occurred since the
last previous lien date;
d.
A listing of parcels that have not changed ownership since the
enactment of Proposition XIIIA;
e.
A comparison of property within the CITY, by county -use
code designation;
f.
A listing by parcel of new construction activity utilizing CITY
building department data, including building permits with
assessor parcel numbers and project completion dates, to
identify non - residential parcels with new construction activity
and to provide reports for use in the CITY's preparation of
Proposition 4 and 1 I I State Appropriation Limit calculations;
g.
A listing of parcels which have more than one owner;
h.
A listing of absentee owner parcels;
i.
Calculate an estimate of property tax revenue anticipated to be
received for the fiscal year by the CITY . This estimate is
based upon the initial information provided by the County and
is subject to modification. This estimate shall not be used to
secure the indebtedness of the CITY or the Agency; and,
j.
Upon written request, analyses based on geographical areas
designated by the CITY to include assessed valuations and
square footage computations for use in community
development planning.
B. The following tasks will be performed quarterly:
1. A listing of property tax appeals filed on properties in the CITY;
2. A listing of property transfers that have occurred since the last report;
and,
3. An update of computer program parcel transfer data.
C. The following tasks involving an analysis and identification of misallocation
errors shall be performed as follows:
On or before , and as requested thereafter by the CITY,
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CONTRACTOR shall conduct an analysis to identify and verify in
both the CITY, parcels on the secured Property Tax Roll which are
not properly attributed to a CITY TRA, and will provide the correct
TRA designation to the proper County agency. Typical errors include
parcels assigned to incorrect TRAs within the CITY or an adjacent
CITY, and TRAs allocated to wrong taxing agencies.
2. CONTRACTOR shall reconcile the annual auditor- controller assessed
valuations report to the assessor's lien date rolls and identify
discrepancies.
3. CONTRACTOR shall review parcels on the unsecured Property Tax
Roll to identify inconsistencies such as value variations, values being
reported to a mailing address rather than the situs address, and errors
involving TRAs (to the extent records are available).
4. Property transfers and new construction completions will be tracked
to determine whether reassessment is performed within a reasonable
time. The CITY will be notified of parcels which have failed to be
reassessed.
D. ON -GOING CONSULTATION - During the term of this Agreement,
CONTRACTOR will serve as the CITY's resource staff on questions relating
to property tax and assist in estimating current year property tax revenues. On-
going consultation would include, but not be limited to, inquiries resolved
through use of the CITY's data base.
E. OPTIONAL SERVICES - The following services are available on a time and
materials basis
Generation of specialized data -based reports which would require
additional programming or the purchase of additional data not
necessary to carry out services outlined in Sections A, B, and C.
2. Any Research with county agencies for which CONTRACTOR does
not have a current database.
Establishing the Spreadsheet Program described in C.5 above for the
1995 -96 fiscal year.
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CONSIDERATION
The CITY shall pay CONTRACTOR a maximum of $11,390 annually for the services
rendered under this agreement, unless the CITY Council increases such amount. The
maximum amount of $11,390 shall be paid as follows:
A. CONTRACTOR shall provide all of the services described in Services -
Sections A, B and D above, for an annual fee of $5,500 (invoiced quarterly).
B. CONTRACTOR shall provide all of the Services described in Section Services
- Section C and shall be paid 25 percent of misallocated revenue identified in
the audit or $5,890, whichever is less. CONTRACTORs shall separate and
support said reallocation and provide CITY with an itemized invoice showing
all amounts due as a result of revenue recovery or reallocation. CITY shall pay
audit fees after CONTRACTOR's submittal of evidence that corrections have
been made by the appropriate agency. Payment to CONTRACTOR shall be
made after CITY receives its first remittance advice during the fiscal year for
which the correction applies.
C. In the event all of the Services in Section A, B and C are performed for less
than $11,390 or the CITY Council increases the annual fee to be paid to
CONTRACTOR, the CITY can request that the Optional Services outlined in
Section E be performed and CONTRACTOR bill for such services at the
following hourly rates:
Principal
$135 per hour
Senior Associate
$100 per hour
Associate
$ 85 per hour
Senior Analyst
$ 70 per hour
Analyst
$ 55 per hour
Hourly rates are exclusive of expenses, which are billed at 1.15 times actual
incurred costs.
CITY MATERIALS AND SUPPORT
CITY agrees to provide the following information:
A. Current CITY maps and zoning map;
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B. A copy of reports received by the CITY annually from the Auditor - Controller's
office detailing Assessed Values (Secured, Unsecured and Utilities), as well as
Unitary Values for reconciliation analysis;
C. Parcel listing and maps of CITY parcel annexations since the lien date roll;
D. A listing of completed new construction projects with Assessor's map book,
page and parcel (APN) numbers for proper identification and tracking for two
years prior to the date of the agreement. If the data does not include the APN
information, CONTRACTOR will research this information at an additional
cost;
E. A listing of the CITY levies assessment districts and direct assessments;
INDEPENDENT CONTRACTOR
CONTRACTOR shall perform the services hereunder as an independent CONTRACTOR and
shall furnish such services in his own manner and method, and under no circumstances or
conditions shall any agent, servant, or employee of CONTRACTOR be considered as an
employee of CITY.
NON - ASSIGNMENT
This Agreement is not assignable either in whole or in part by CONTRACTOR without the
written consent of CITY.
ATTORNEY'S FEES
In the event a legal action is commenced to enforce any of the provisions of this Agreement,
the prevailing party shall be entitled to recover its costs and reasonable attorney's fees.
NON - DISCLOSURE CLAUSE
In performing its duties under this agreement, CONTRACTOR will produce reports, technical
information and other compilations of data to CITY. These reports, technical information and
compilations of data are derived by CONTRACTOR using methodologies, formulae,
programs, techniques and other processes designed and developed by CONTRACTOR at a
substantial expense. CONTRACTOR'S reports, technical information, compilations of data,
methodologies, formulae, programs, techniques and other processes designed and developed
by CONTRACTOR shall be referred to as Proprietary Information. CONTRACTOR'S
Proprietary Information is not generally known by the entities with which CONTRACTOR
competes.
CONTRACTOR desires to protect its proprietary Information. Likewise, the CITY desires
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to protect the information because it considers the information confidential. Accordingly,
CITY and CONTRACTOR agree that neither the CITY or the CONTRACTOR, or their
respective officers, employees, agents, independent CONTRACTORs or other persons or
organizations over which they have control, will at any time during or after the term of this
Agreement, directly or indirectly use any of the information for any purpose not associated
with CONTRACTOR'S activities or normal CITY business, except as otherwise required by
law. Further, CITY and CONTRACTOR agree that their respective officers, employees,
agents, independent CONTRACTORs or other persons or organizations over which they have
control, will not disseminate or disclose any of the information to any person or organization
not connected with CONTRACTOR or CITY, except as necessary to carry out normal CITY
business or as otherwise required by law, without the express written consent of the other
party hereto. The CITY and CONTRACTOR also agree that they will undertake all
necessary and appropriate steps, except to initiate or defend a legal action, to maintain the
confidentiality of the information.
GOVERNING LAW
The laws of the State of California shall govern the rights, obligations, duties and liabilities
of the parties to this Agreement and shall also govern the interpretation of this agreement.
TERMINATION
This Agreement may be terminated by either party giving 30 days written notice to the other
of such termination and specifying the effective date thereof. Upon the presentation of such
notice, CONTRACTOR may continue to work through the date of termination. Upon
termination as provided herein, CONTRACTOR shall be paid the value of all tax analysis and
reporting work performed less payments previously made by CITY. In ascertaining the value
of the work performed up to the date of termination, consideration shall be given to amounts
due for any unpaid invoices, and to parcels identified by CONTRACTOR which result in
increased or reallocated revenues after the termination of this Agreement. After CITY
receives said tax payments, CONTRACTOR shall be paid for the percentage work as
previously authorized and satisfactorily performed at the times provided in the preceding
section entitled "Consideration ".
INSURANCE
Insurance Requirements. CONTRACTOR shall provide and maintain insurance acceptable
to the City Attorney in full force and effect throughout the term of this Agreement, against
claims for injuries to persons or damages to property which may arise from or in connection
with the performance of the work hereunder by CONTRACTOR, its agents, representatives
or employees. Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A:VU. CONTRACTOR shall provide the following scope and limits of insurance:
Minimum Scope of Insurance. Coverage shall be at least as
broad as:
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(1) Insurance Services Office form
Commercial General Liability coverage
(Occurrence Form CG 0001).
(2) Insurance Services Office form number
CA 0001 (Ed. 1/87) covering Automobile
Liability, including code 1 "any auto" and
endorsement CA 0025, or equivalent forms
subject to the written approval of the City.
(3) Workers' Compensation insurance as
required by the Labor Code of State of
California and Employer's Liability insurance
and covering all persons providing services on
behalf of the Consultant and all risks to such
persons under this Agreement.
(4) Errors and omissions liability insurance
appropriate to the CONTRACTOR'S
profession.
2. ]Minimum Limits of Insurance. CONTRACTOR maintain
limits of insurance no less than:
(1) General Liability: $1,000,000 per
occurrence for bodily injury, personal injury
and property damage. If Commercial General
Liability Insurance or other form with a
general aggregate limit is used, either the
general aggregate limit shall apply separately
to the activities related to this Agreement or
the general aggregate limit shall be twice the
required occurrence limit.
(2) Automobile Liability: $1,000,000 per
accident for bodily injury and property
damage.
(3) Workers' Compensation and
Employer's Liability: Workers' Compensation
as required by the Labor Code of the State of
California and Employers Liability limits of
$1,000,000 per accident.
(4) Errors and Omissions Liability:
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$1,000,000 per occurrence.
B Other Provisions. Insurance policies required by this Agreement shall
contain the following provisions:
(1) All Policies. Each insurance policy required by this paragraph
15 shall be endorsed and state the coverage shall not be suspended, voided, canceled by the
insurer or either party to this Agreement, reduced in coverage or in limits except after 30
days' prior written notice by Certified mail, return receipt requested, has been given to the
City.
(2) General Liability and Automobile Liability Coverages.
(a) City, its officers, officials, and employees and volunteers
are to be covered as additional insureds as respects: liability arising out of activities
CONTRACTORt performs, products and completed operations of CONTRACTOR; premises
owned, occupied or used by CONTRACTOR, or automobiles owned, leased or hired or
borrowed by Consultant. The coverage shall contain no special limitations on the scope of
protection afforded to City, its officers, officials, or employees.
(b) CONTRACTOR's insurance coverage shall be primary
insurance as respect to City, its officers, officials, employees and volunteers. Any insurance
or self insurance maintained by City, its officers, officials, employees or volunteers shall apply
in excess of, and not contribute with, CONTRACTOR's insurance.
(c) CONTRACTOR's insurance shall apply separately to
each insured against whom claim is made or suit is brought, except with respect to the limits
of the insurer's liability.
(d) Any failure to comply with the reporting or other
provisions of the policies including breaches of warranties shall not affect coverage provided
to the City, its officers, officials, employees or volunteers.
(3) Workers' Compensation and Employer's Liability Coverage.
Unless the City Manager otherwise agrees in writing, the insurer shall agree to waive all rights
of subrogation against City, its officers, officials, employees and agents for losses arising from
work performed by CONTRACTOR for City.
C. Other Requirements. CONTRACTOR agrees to deposit with City, at
or before the effective date of this contract, certificates of insurance necessary to satisfy City
that the insurance provisions of this contract have been complied with. The City Attorney
may require that CONTRACTOR furnish City with copies of original endorsements effecting
coverage required by this Section. The certificates and endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. City reserves the right to
inspect complete, certified copies of all required insurance policies, at any time.
0 147
(1) CONTRACTOR shall furnish certificates and endorsements
from each subcontractor identical to those CONTRACTOR provides.
(2) Any deductibles or self-insured retentions must be declared to
and approved by City. At the option of the City, either the insurer shall reduce or eliminate
such deductibles or self - insured retentions as respects the City, its officers, officials,
employees and volunteers; or the CONTRACTOR shall procure a bond guaranteeing payment
of losses and related investigations, claim administration, defense expenses and claims.
(3) The procuring of such required policy or policies of insurance
shall not be construed to limit CONTRACTOR's liability hereunder nor to fulfill the
indemnification provisions and requirements of this Agreement.
INDEMNIFICATION
CONTRACTOR hereby agrees to, and shall hold CITY, its elective and appointive boards,
officers, agents and employees, harmless from any liability for damage or claims for damage
for personal injury, including death, as well as from claims for breach of confidentiality or
property damage which may arise from CONTRACTOR'S willful or negligent acts, errors or
, including those of its officers, employees or agents. CONTRACTOR agrees to and shall
defend and indemnify CITY and its elective and appointive boards, officers, agents and
employees from any suits or actions at law or in equity for damages caused by reason of any
of the aforesaid willful or negligent acts, errors or omissions. CITY hereby agrees to, and
shall hold CONTRACTOR, its officers, agents and employees, harmless from any liability for
damage or claims for damage for personal injury, including death as well as from claims for
breach of confidentiality or property damage which may arise from CITY'S negligent acts,
errors or omissions under this Agreement. CITY agrees to and shall defend and indemnify
CONTRACTOR and its officers, agents and employees from any suits or actions at law or
in equity for damage caused by reason of any of the aforesaid negligent acts, errors or
omissions.
0 148
NOTICE
All notices required by this Agreement shall be given to CITY and CONTRACTOR in
writing, by personal delivery or first class mail postage prepaid, addressed as follows:
CITY CITY of El Segundo
350 Main Street
El Segundo, CA 90245
CONTRACTOR: HdL COREN & CONE
1340 Valley Vista Drive, Suite 200
Diamond Bar, California 91765
ENTIRE AGREEMENT
This Agreement is the complete, final, entire and exclusive expression of the agreement
between the parties hereto and supersedes any and all other agreements, either oral or in
writing, between the parties with respect to the subject matter herein. Each party to this
Agreement acknowledges that no representations by any parry which are not embodied herein
and that no other agreement, statement, or promise not contained in this Agreement shall be
valid and binding.
MODIFICATION OF AGREEMENT
The terms of this Agreement can only be modified in writing approved by the CITY Council
and the CONTRACTOR. The parties agree that this requirement for written modifications
cannot be waived and any attempted waiver shall be void.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on
the date first above written by their respective officers duly authorized in that behalf.
CITY OF EL SEGUNDO
Mayor
CITY Clerk
CONTRACTOR:
io
0 149
HdL COREN & CONE
A California Corporation
APPROVED AS TO FORM:
CITY Attorney
11
0 150
EL SEGUNDO CITY COUNCIL MEETING DATE: August 5, 1997
AGENDA ITEM STATEMENT AGENDA HEADING: City Manager -New Business
AGENDA DESCRIPTION:
Status Report and Action Plan for City -Wide Information Systems Capital Improvement Project ($650,000)
RECOMMENDED COUNCIL ACTION:
Accept Presentation and Report by Consultant and direct staff to
a) negotiate a contract with Eden Systems, Inc. of Yakima, Washington, for Core Financial Information Systems;
($350,000);
b) negotiate a contract with Anixter, Inc. under California Multiple Awards Schedule (CMAS) cooperative agreement
pricing for hardware, cabling, diagnostic tools and installation of a City Hall network connected to outlying
facilities ($145,000);
C) segregate the Internet Strategy from other technology efforts and solicit Requests for Proposal (RFP) to meet City-
wide Internet Access Requirements (estimated cost TBD);
d) retain the services of Kerry Consulting Group to expand or further define the strategic framework for Information
Technology and to perform certain contract oversight tasks pending the recruitment and selection of an Information
Systems Manager (NTE $32,000).
INTRODUCTION AND BACKGROUND:
In the FY96 -97 CIP Budget, Council authorized a $650,000 project for Management Information Systems.
DISCUSSION:
On October 15, 1996, Council authorized a RFP for core financial software systems and support hardware, a critical
element of the project. The Mayor subsequently appointed Councilman Weston and herself as members of a Selection
Committee to review proposals, attend demonstrations and perform site visits. Proposals were received on November 15,
1996, and the evaluation phase was completed in mid - February. A summary of Proposal Analysis and Recommendations is
attached. (Attachment 1).
Concurrent with this effort, the Network Administrator began working with a CMAS vendor to develop a viable upgrade
and expansion plan for the existing City Hall Novell Network, which had been installed in FY93 -94. The Network
hardware and cabling Initiative is another critical element of this project, as this provides the internal highway for all users to
communicate and access the core financial systems. Surveys indicate that in excess of 70% of the network problems are
attributable to cabling installation. Thus, it is critical to obtain the services of a reliable vendor who will assume
responsibility for installation, equipment and total network performance. Anixter, Inc. is a well recognized vendor servicing
major installations as well as providing pricing through a cooperative State agreement (CMAS) that assures competitive
pricing to state and local agencies for industry recognized standard technology acquisitions. This effort has taken several
months and numerous alternatives have been explored as city-wide requirements have been defined and the scope has been
altered several times, most recently through discussions with Dennis Vlasich, the consultant whose report is attached. The
result is a proposal for network, cabling, related hardware, software, diagnostic tools, and installation which would be
procured under state negotiated CMAS pricing, at an estimated cost not to exceed $145,000.
While these efforts were underway, the City's Internet requirements emerged as a priority in the Library, Economic
Development, as well as viable, productive staff needs in other City Hall functions. The FY 97 -98 Budget includes funding
for website maintenance, Internet Access for Library Patrons (and the creation of user fees associated with the new service),
as well as several other non - Internet technology projects that will require integration (i.e. permit tracking). Several
alternatives have emerged for fulfilling the Internet needs from an access standpoint. At one point, this access had been
considered as a component of the above - mentioned network and cabling initiative. Although initially the City's Technology
Plan included provision for a dedicated line for secure, cost - effective. high- quality Internet access, it appeared that this
component should be segregated from the local network and cabling contract and procured through a Request for Proposal
(RFP) and competitive evaluation based upon specifications. Thus, the scope of the Anixter proposal was limited to those
critical elements of an enterprise network and the technology acquisitions needed to support, maintain and provide network
connectivity with the existing and proposed applications, excluding Internet. However, the network was designed to provide
0 151
the flexibility to add on Internet access through a T1 line at either City Hall or the Library, depending upon the outcome of
the competitive RFP process.
Staff has directed considerable effort to assure that these critical components are coordinated before firm commitments are
recommended to Council for action. An Information Systems Plan was developed and presented to the Management Team
in late June. (Attachment 2). However, the current resources of the staff lack the expertise of a professional experienced in
master planning and oversight of such a technical endeavor. Thus, staff engaged the limited services of Dennis Vlasich,
Kerry Consulting Group (KCG), a consultant experienced in MIS initiatives for local government entities to:
• become familiar with the 3 major initiatives (Financial Systems, Network and Cabling, and Internet Access
Alternatives) and the proposed courses of action being pursued;
• assess the responsiveness of the selected vendors' potential to satisfy the city's overall requirements into the
foreseeable future, and the flexibility and compatibility of the recommended technology in today's industry, given
the City's strategic needs;
• facilitate coordination among potential vendors, consultants and staff to assure that all immediate and anticipated
investment requirements are provided for in one of the proposed elements of the total project;
• make recommendations on priorities, additional investments to improve value; and
• advise the city if any other technology opportunities (ie. telephone system upgrades), resources, or policies should
be evaluated concurrent with these investments.
The consultant was provided the presentation of the Information Systems Plan. Attachment 3 is the consultant's report
which details the scope of the study and makes certain findings and recommendations.
Staff recommends that the Council accept the Consultant's presentation and report and take the following immediate actions:
1) Confirm the Selection of Eden as the vendor for the core Financial Systems Software and direct staff and the
consultant to negotiate a contract with performance milestones, and a no -cost migration to NT from UNIX at a
future date, as outlined in the KCG report;
2) Authorize staff to negotiate with Anixter under the CMAS cooperative agreement for hardware, software, cabling,
diagnostic tools and installation, as outlined in the KCG report;
3) Segregate the Internet Strategy from other hardware efforts and solicit Requests for Proposal to assure that several
viable technology and service combination alternatives are considered, as outlined in the KCG report; and
4) Authorize the City to retain KCG to develop a strategic framework for Information Technology and to
perform certain contract oversight tasks pending the recruitment and selection of the Information Systems
Manager. A recommendation regarding this budgeted position including job specifications will be brought to
Council at the September 16, 1997 meeting. Funding for this effort could be provided from estimated FY97 -98
salary savings from the newly created vacant position. The consulting services would include:
a) negotiate a contract with the selected software vendor, to include vendor performance milestones and other
terms and conditions required by the City;
b) defining roles, responsibilities, and organizational reporting of the Information Systems Manager;
C) documenting and defining responsibilities and authority of other city personnel with responsibilities for
individual and city -wide technology applications;
d) assisting Human Resources in developing a skills inventory/needs assessment for training and a tactical
plan for implementing and maintaining training in standard and emerging technology for the workforce;
0 152
e) work with staff to develop an RFP for Internet Access and maintenance including the bandwidth and
configuration to assure network security, performance and support for the City's Website
maintenance, Patron Access, staff access for research and E -mail access;
f) assist in the evaluation and selection of a vendor or vendors to assure a comprehensive Internet Strategy for
the City; and
g) facilitate the development of standards for hardware, software, e-mail as well as policies and
procedures.
The final contract language will be brought back to Council for approval as soon as negotiations are finalized on the four (4)
recommendations above. Other recommendations within the consultant's report are worthy of greater discussion and
evaluation. They are important issues to consider as the City proceeds, but immediate action is not needed, and a patient,
thorough and strategic approach to the other recommendations is warranted.
Attachment 4 provides a recap of the near term technology projects in progress and the funding sources currently allocated.
Attachment 5 provides an Estimated Timeline for the Core Financial Systems Conversion.
Representatives from Eden Systems, Anixter, Inc., as well as staff will be available at the August 511 Council meeting to
answer any questions, as well and Dennis Vlasich, of KCG, who will make the presentation.
ATTACHED SUPPORTING DOCUMENTS:
1) Summary of Proposal Analysis and Recommendations for Core Financial Information Systems
2) City of El Segundo Information Systems Plan, June, 1997
3) Kerry Consulting Group Review of MIS Action Plan and Strategic Framework
4) Summary of Pending Budgeted Information Technology Projects
5) Estimated Timeline for Core Financial Systems
FISCAL IMPACT:
(Check one) Operating Budget: Capital Improv. Budget:
Amount Requested:
Project /Account Budget:
Project /Account Balance: Date:
Account Number:
Project Phase:
Appropriation Required - Yes_ No
ORIGINATED: Date:
; �,� ; � Va"': �
ePamer, Finance Director
BY: Date:
752x�;,
. Morrison, City Manager
TAKEN:
0 153
Summary of Proposal Analysis and Recommendations Attachment I
Core Financial Information Systems
Three proposals were received in response to the Request for Proposals: Eden Systems, Inc., Pentamation, and
Systems & Computing Technology Corp. (SCT). A cost summary of the proposals is attached. Below is a narrative
discussion of the evaluation process, findings and recommendations.
An evaluation team comprised of Mayor Jacobs, Councilman Weston, the Finance Director, Library Director, Human
Resources Director, Assistant Financial Director, Accounting Manager, Payroll Specialist, Budget
Analyst/Accountant, Battalion Chief Moore, and the Executive Assistant from the City Manager's office attended on-
site demonstrations on various subsystems. One site visit was also performed at San Leandro to see the Eden system
in operation in a city installation. City staff also made numerous reference calls and continue to have ongoing
discussions with Manhattan Beach who recently installed Phase I of the Eden Systems, and Claremont who is
commencing a similar conversion.
The SCT proposal was not considered for the following reasons:
1) considerably greater initial and ongoing costs,
2) more limitations in standard package that would require modification for our current payroll and budgeting
procedures,
3) limited installations in California (only 1 California city), and
4) headquarters based on east coast (see below for explanation).
The Pentamation proposal was ranked second based upon the following
1) headquarters based on the east coast which would result in time zone challenges with emergency assistance and
support;
2) training and other travel costs were higher and offered less flexibility in scheduling, and
3) while both systems have a substantial presence in Ca. Cities, the standardized features of the Eden System
matched El Segundo's needs more closely.
Pentamation's systems could be adapted to the City's requirements in the unlikely event that the City's negotiation
efforts for key contract provisions were unsuccessful.
Eden Systems proposal is the recommended course of action for the following reasons:
1) cost competitive in initial investment;
2) ongoing maintenance support required both by staff and in continuing licensing costs is lower especially
considering travel costs, accessibility of user groups, etc.;
3) excellent customer service reputation among all customers, especially west coast client base;
4) Payroll and Human Resources modules were superior to other vendors (since these costs are the largest
component of the City's operations and since payroll systems consume the greatest maintenance effort, this
became a major factor);
5) the Informix data base is an industry leader,
6) the General Ledger, Budgeting and automated purchasing systems provided more standard features that were
compatible with current and desired information (line item budget development with detailed descriptions, the
ability to provide decentralized data on encumbrance accounts consistent with the Library's and other
departmental needs);
7) Eden systems has consistently selected industry leading hardware and operating systems and invested a
significant amount in ongoing development to offer clients the opportunity to remain at the forefront of
productivity,
8) Eden Systems has successfully interfaced with non -Eden subsystems (alternate permits systems) and the open
architecture of the systems would facilitate an interface with other progressive subsystems such as fleet
management and/or Business Licensing; and
9) Eden has been providing software to local governments in excess of 17 years with consistent growth and a solid
technical and financial reputation.
In conclusion, there are inevitable tradeoffs when converting to a standardized suite of financial systems, the Eden
proposal appears to best meet the City's current and future needs for core management information systems, and
provides opportunities for expansion and integration with other specialized applications.
0 154
Cost Summary - Core Financial Information Systems Proposals Attachment 1
Page 2
Eden Systems Pentamation SCT
Core Financials Software:
Includes General Ledger, Budget, $
29,950 $
24,000 $
65,000
Acct. Payable, Acct. Receivable *,
Purchasing and Requisitions*
Maintenance 15%
4,718
3,600
26,235
PayrolUHuman Resources
Includes Applicant Tracking and
50,900
15,000
61,000
Position Control
Maintenance 15%
7,635
2,250
Secondary Financials
Fixed Assets
7,500
5,000
Inventory
7,500
4,500
Business Licensing
7,500
4,500
44,000
Investments Manager
4,000
Fleet Manager
4,500
Parks & Recreation Manager
5,000
Ticket Manager
8,000
Utility Billing
29,950
9,000
no bid #2
Maintenance -15%
7,868
6,675
Cash Receipting - Bar Code
8,500
Cash drawer support
500
Cash Receipts Manager
8,000
4,000
2,500
Maintenance 15%
500
600
Report Writer
5,720
3,450
no bid #2
Maintenance 15%
858
513
Data Dictionaries
1,500
Focus for Windows Software
2,400
Informix Relation Data Base
Online Engine
39,775
Maintenance 15%
4,900
Standard Engine
15,550 #1
Maintenance 15%
2,660
Oracle data base (estimate)
28,910
Maintenance 15%
4,336
Training and Installation
47,000
42,000
117,040
Travel Expenses
16,000
28,800
TCP/IP and Emulation Products
8,320
8,320
30,572
ODBC drivers
1,000
1,000
Discounts
(9,921)
-
0 155
Cost Summary - Core Financial Information Systems Proposals
Subtotal
Hardware
HP NetServer 256 Mbytes RAM
12 Usable Gbyte Hard Disk, Tape
Backup, Quad 200 Mhz processors
Installation
Freight
Support
Compaq Pro Sigma 500 5 1150 -1
which supports a single processor
128 MB of ECC Memory, 12.9 GB
of FAST -SCSI disk storage
Installation
Freight
Support
Data General AV 3600 534 MB
of memory bus bandwidth,
supporting symmetrical processing
demands of up to four 200Mhz
Pro chips. (Installation included)
286,173
38,911
202,918
25,792
26,100
1,050
6,460
Subtotal 325,084 262,320
Estimated Modification 5,500
Options
GUIndows 32 users 16,800
GUI Maintenance/Training 2,400 2,520
Contingency 5,000
Data Conversion 25,000 34,500
Grand Total
357,484
321,640
Attachment 1
Page 3
381,993
65,000
446,993
446,993
411 Informix has expressed their preference with the On Line engine. It is likely that they will eventually stop
supporting the standard engine, thus requiring the City to incur the additional costs of a second mini
conversion.
#2 SCT's proposal is understated by two key systems, that they do not sell, but instead recommend a third party
vendor.
Note: Eden proposal is 10% higher, but it has a superior Informix database, and more powerful hardware for future
growth. No factor is provided for cost upgrades that would be needed to the Pentamation platform in the future.
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City of El Segundo
Information Systems Plan Review: Final Report
July 29, 1997
KCB
KERRY CONSULTING GROUP
976 W. Foothill Blvd., Suite 392
Claremont, California 91711
909 - 621 -6469
909 - 626 -7768 FAX
0 180
TABLE OF CONTENTS
CITY OF EL SEGUNDO
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FINAL REPORT TABLE OF CONTENTS
TABLE OF CONTENTS I
EXECUTIVE SUMMARY 3
FINDINGS
9
ANIXTER PROPOSAL (APRIL 1997, REVISED 7/97)
10
EDEN PROPOSAL (NOVEMBER 1996)
12
STAFF REPORT (OCTOBER 1996)
13
RECOMMENDATIONS
15
RECOMMENDATION #1:
SEPARATE THE CITY'S INTERNET STRATEGY INTO
FOUR DISTINCT ELEMENTS
15
WEB SITE MANAGEMENT
16
PUBLIC INTERNET ACCESS
16
INTERNET EMAIL
17
STAFF INTERNET ACCESS
18
RECOMMENDATION #2:
BUILD A CENTRALLY MANAGED NETWORK
INFRASTRUCTURE TO SUPPORT BOTH ENTERPRISE
AND DEPARTMENTAL APPLICATIONS
18
RECOMMENDATION #3:
CONTRACT WITH ANIXTER TO INSTALL THE
RECONFIGURED NETWORK.
20
RECOMMENDATION #4:
NEGOTIATE AN AWARD TO EDEN SYSTEMS BASED ON
THE NOVEMBER 1996 PROPOSAL MODIFIED FOR
CURRENT CIRCUMSTANCES.
21
RECOMMENDATION #5:
DEVELOP OFFICE AUTOMATION STANDARDS AND
IMPLEMENT CITY -WIDE UPGRADE.
22
RECOMMENDATION #6:
STRUCTURE TECHNOLOGY INTO THE ORGANIZATION
AS A STRATEGIC RESOURCE.
24
APPENDIX A
27
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EXECUTIVE SUMMARY
Summary of Findings and Recommendations
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Kerry Consulting Group was retained by staff at the City
of El Segundo to review a proposed Information Systems
Plan which included a recommendation to award a
Finance system purchase to Eden Systems (Yakima,
WA) and a network cabling project to Anixter (Stokie, IQ
The Plan, in slide presentation format, outlined the
background and justification for the recommendations
and a general framework for a strategic plan for the
future of technology (i.e. computer systems) deployment
at the City. This Plan is a good beginning to a strategic
framework to begin the City's transition into a new
computing environment to replace its present fragmented
collection of computing islands. As technology
permeates into virtually every department and every task,
it is imperative that the City implement a manageable
infrastructure which will support the integration and
interface of a wide variety of new and different
departmental systems, some of which cannot even be
envisioned at this time.
The core issues of the Plan were to instigate the City's
migration into a new technology plateau by accepting the
Anixter proposal to install a city -wide wiring plan and
Wide Area Network and to accept the Eden Systems
proposal for a Financial Information System.'
The Anixter proposal was to provide a "switched"
ethernet cabling plant which is, by design, more than
. KCG did not compare or evaluate the Eden proposal against any of the other responses to the City's
RFP. KCG's charge was to review the two proposals and the Information Systems Plan to be sure that
all of the necessary issues were being addressed.
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adequate for the City's network communications needs
for the foreseeable future. The incremental cost of
"switched" over "shared" hubs is well worth the protection
it affords for future growth.
The initial proposal called for two main hubs —one in the
Police Department and one in City Hall. The primary
access to Metropolitan Area Networks (other City
facilities and the Internet) as well as dial up access is
proposed through the City Hall hub. The Police
Department would be connected separately via a router
to the West Covina Police Department to use their CDS
records management system.
Pursuant to several discussions and meetings with
Anixter representatives and City staff, a revised
configuration was requested which would defer the
implementation of an Internet connection to a separate
project and focus on building a robust, manageable, and
reliable network infrastructure to which additional
applications such as Internet access and various
departmental applications now operating as "islands"
could be added..
Added to the revised configuration was the installation of
a file server that would manage the assignment of IP
(Internet Protocol) addresses required by the Eden
_ product.as well _as_ provide. for. remote-network
connectivity (a Point to Point Protocol –PPP server) also
required by Eden for remote support. Discussion with
staff, Anixter, and Eden came to the consensus that
using Microsoft NT Server with DHCP (for IP assignment)
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and Remote Access Server (for PPP access) would be
the most cost effective and would facilitate future
expansion to upgrade the general office automation
environment and email.
The Eden Systems proposal appears to have all of the
critical application elements for Financial Systems
required by the City. Their recent successful
implementation at the City of Manhattan Beach adds to
the credibility of their proposal and provides a good local
source for information and assistance during the
implementation phases. However, since the proposal
was submitted several months ago, there have been
some major changes in hardware pricing and capabilities
and even in what software modules are available from
Eden. Fortunately, in most cases prices have come
down, so the City will be able to get more for the quoted
prices.
An "award configuration" will need to be negotiated with
Eden Systems based on whatever changes may have
occurred in their proposal from their original submittal
and a determination of which of the proposed products
and services should be purchased. In some cases, third
party products may be sought out instead of one or more
Eden modules or application deployment deferred until
other elements of a Strategic Plan are fully implemented.
In any case, it appears that staff has allocated a
sufficient budget to implement all of the critical
components of the Finance system.
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FINAL REPORT EXECUTIVE SUMMARY
It is critically important that these initial stages of laying a
foundation for a technology communications
infrastructure be carefully coordinated with the
deployment of the first mission - critical enterprise
applications— Finance and Payroll. This first phase will
establish the network addressing strategy (IP address
assignment) and subnet architecture which will be
essential to the future security of the various systems to
be deployed, especially the Internet applications in the
future. Part of Anixter's revised proposal includes the
procurement of a Class C set of IP address ranges from
InterNlC, the government agency (loosely) regulating IP
addresses for Internet access, as well as designing the
traffic control strategy so that the network can scale up to
increasing usage.
While it is not necessary to implement all of Anixter's
project before beginning the Eden System project, the
basic network and platform strategies must be
determined. With basic network services established
city -wide, the Eden system project can concentrate on
functional and procedural issues, not on network
problems. It also means that the substantial cost of
reconfiguring the network later as usage grows can be
avoided. The Eden representative, Jeff Green, is
satisfied that the project plan discussed verbally with
Anixter (and reflected in Anixter's revised proposal) is
compatible with their implementation strategy..
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From this foundation, the eventual addition and funding
of other enterprise applications like Internet access or
Document Imaging is facilitated, as well as additional
departmental applications such as Permits, Parks and
Recreation, Investments, etc. Without it, these
applications become island systems running on a
common set of wires, but without the connectivity or
compatibility to accomplish the objectives of the
Information Systems Plan.
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FINDINGS
Facts and figures used as the basis for
CITY OF EL SEGUNDO
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recommendations in report
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As reflected in the Information Systems Plan, staff has recognized the problem
that while technology investment has proliferated in the form of PC purchases
and "island" computer systems, there is no cohesive policy to manage and
integrate technology to optimize its benefit. In fact, the lack of standards,
training, and system integration is costing the City more and more each year as
technology obsoletes itself and duplication of effort in redundant systems causes
data integrity problems in virtually all areas. Support for technology falls, in most
cases, to people who were hired for other job functions or is outsourced to
Progressive Solutions. City Hall has "borrowed" some of the time and expertise
of the network specialist hired by the Police Department to set up and manage
the current Novell network at City Hall.
Recognizing the urgency of the situation, staff has appropriately started the
process to address the key critical issues in light of the imminent termination of
the Progressive Solutions facilities management agreement for the current
InaComp Finance system. This aging, legacy system has become difficult and
costly to support and the cost to modify it for year 2000 compliance would not be
advisable given its other functional deficiencies.
Anixter Proposal (April 1997, Revised 7/97)
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The initial network configuration showed three logical
network segments connected (via fiber optic cable) at a
central (City Hall) location. The Fire Station #1 and
Police Department hubs would be connected to the City
Hall hub via 100Mbit switches and the desktop
workstations connected to these hubs via 10Mbit
switches. (Police and Fire hubs are currently connected
to the City Hall Novell network which is confined to City
Hall). The Police Department has an externally routed
56KB connection to the West Covina Police Department
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FINAL REPORT FINDINGS
for access to their Records Management System. The
Fire Department is shown running a single (Macintosh)
file server, although there is also a Windows NT Server
system in place.
Remote connections to Parks facilities (four of them) are
proposed via 28.8KB modems over dial -up lines to a
PacBell ISDN /Analog switch (at the PacBell CO). The
City Yard and Library would be connected to the same
CO via 128K BRI ISDN lines. The City Hall router /switch
would be connected to the CO via an ISDN PRI line (i.e.
the bandwidth of 24 BRI lines).
The original diagram shows a 384KB Frame Relay
connection to the Internet from the City Hall router.
Technically, everyone accessing the Internet — email,
Netscape browsers, staff and public (through the
Library) —would funnel through the central City Hall
switch. However, an unsolicited proposal from a local
Internet Service Provider called UnitrendX shows an
connection to a web server through the Library with a T1
line between the Library and the ISP and another
between the Library and City Hall. This proposal
includes substantial initial costs (over $51,000) and at
least $17,000 annually and requires the installation of
network cabling in the Library which is not yet in place.
Anixter has added the cost of cabling the library to city-
wide standards to their revised configuration.
Following the telephone conference call with Eden,
Anixter, KCG, and staff on July 23rd, a revised Anixter
proposal is also being finalized to include setting up NT
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Server with DHCP and RAS to establish the IP
addresses and remote connectivity required by Eden.
There are potential building modification requirements
such as space and power, but they are not delineated
and could increase the cost and timeline for the long
range project, but should not impact what is needed for
the base network required for the installation of Eden..
Eden Proposal (November 1996)
Eden has proposed a two phase project in response to
the requirements of the RFP, but some of the required
modules were not developed or tested at the time of the
submittal. At this point, several have been completed
and may be moved into Phase 1. Phase 1 includes
"core" Finance modules, Payroll with Position Control,
Human Resources and the necessary platform servers to
support these and the Phase 2 applications.
One of the City's most critical applications, Business
Licenses, which accounts for over $10,000,000 in annual
revenues, may not be awarded to Eden. It is currently
one of the COBOL -based legacy applications supported
by Progressive Solutions and has many functional
deficiencies. Eden's Informix based Business License
module is not scheduled for release until sometime in
1998, so staff has explored third party solution
alternatives'.
One such system is a Business License system from HdL which would cost approximately $25,000, but
would require some interface programming (at additional cost) to feed into the Eden database.
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Similarly, staff is exploring outsourcing Utility Billing
which would eliminate the need for purchasing the
$34,000 Eden Utility Billing module. With only 4600
billing accounts, KCG recommends outsourcing rather
than adding such a major application to the mix of
applications to be implemented.
Staff envisions that these and other Phase 2 applications
be negotiated as optional purchases for later award to
give the City time to investigate alternatives where
appropriate. If all of the necessary products and services
are purchased from Eden, the cost is over $352,000, not
including Building Permits which would add another
$37,150 to the cost. If the City were to go to other third
party systems for some modules (e.g. Business
Licenses), costs may increase because of the added
necessity for interfacing to and from the Eden databases,
not to mention the time and cost of soliciting alternate
proposals for such systems.
Staff Report (October 1996)
The Agenda item in October of 1996 suggested an
overall budget of $650,000. The Finance project with all
modules (except Permits) awarded would come to
$360,000. The revised Anixter proposal comes to
$145,000 which leaves approximately $145,000 for
conversion support and the acceleration of upgrades of
older workstations throughout the City.
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RECOMMENDATIONS
Details of the basis for each recommendation and the
actions required
The City must build a firm foundation on which to support their technology future.
This means quality products, industry standards, homogeneous platforms, and
an on -going budget that provides the resources to manage and maintain the
infrastructure. The use of technology should be seen as either Enterprise (part
of the City's core systems) or Departmental in nature. Funding for the Enterprise
applications which would include Payroll, Office Automation (word processing,
email, etc), telephone systems, and Finance generally will range from 1 % to 2%
of the General Fund budget. Departmental applications such a Library systems,
Police systems, etc. are supplemental to the Enterprise figure and should be cost
justified by the departments they benefit.
Recommendation #1: Separate the City's Internet strategy
into four distinct elements
The most visible and volatile technology today is the
Internet. It is an important resource for information and
communication, but it represents a dangerous
opportunity for abuse as well as exposing the City to
additional legal liabilities. Moving forward into Internet
access should be done as part of a carefully planned
strategy that establishes policies and procedures that
protect the City from potential legal problems and
controls costs. Therefore, it should be defined and then
solutions evaluated through a competitive procurement
process.
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There are several distinct Internet applications which
should be implemented separately by the City: Web Site
Management, Public Internet Access, Internet E -mail,
and Staff Internet Access.
Web Site Management
Although the City's current web site is up on the World
Wide Web as 'elsegundo.org,' it is a static and very
limited site. It should be expanded to include regularly
updated City information, Council agendas and minutes,
and opportunities for feedback through email or other
forums. In order to accomplish this, there must be a
person (or department) in charge of developing the web
page format (which could be outsourced), collecting and
maintaining its content from City departments, and
responding to citizen questions. Economic Development
has been performing this function to date, but, as usage
and functionality expands, it will require more resources
than would be available within that department.
Public Internet Access
The public library is a community resource for
information. Providing access to the information
resources on the World Wide Web (the Internet) is an
expectation of the community and the Council. This
access should "be on an isolated network with secure
firewall and with access potentially provided by a
different Internet Service Provider (ISP) than used by
City staff. If the Library staff has the technical resources,
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
Awes
RECOMMENDATIONS FINAL REPORT
it could and should be managed from there rather than
by the City's central network administrator. If support of
the Web site is also made part of the Library's function, it
would require a full time technical person to manage
both, as well as some significant tools and training.
Internet email
Electronic mail (email) can be used internally in a Local
Area Network (LAN) or externally through the Internet. It
is most efficient to have an email system that can
consolidate both, so the selection of a mail engine and
the workstation mail client software should be part of this
specification. Writing this specification involves careful
planning and design, but the correct product(s) can
significantly cut down on both telephone and FAX traffic
if used properly. In order to use email via LAN and the
Internet, the ISP must be willing to pass Internet mail
through to the City's mail server rather than set up email
accounts on their own mail server, so this should be one
of the criteria in selecting an ISP. It is not necessary or
even advisable to have the same ISP for these services
as for the Web site and Public Access Internet. Some
alternative local providers to the City's present Surenet
ISP are PacBell and BeachNet.
An often overlooked aspect of email is proper training
and-an "Acceptable-Use-Policy." - Used-properly, email
can transform an organization and expedite
communication and paperflow. Abused, it can create
chaos.
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RECOMMENDATIONS
Staff Internet Access
Virtually every department in the City has a legitimate
need to access the Internet for research and information.
Controlling this access requires training, enforced
policies for acceptable use, and technical resources (of
both staff and tools). There are firewall systems that can
monitor and control Internet access through the City's
network, and the design of City's cable plant provides for
adequate bandwidth, but it will take time from a network
administrator to manage the Internet port. This function
along with Internet email should be part of the duties
assigned to the City's network administrator.
Recommendation #2: Build a centrally managed network
infrastructure to support both
enterprise and departmental
applications
PAGE 18 OF 30
FINAL
The design of the Anixter network makes it possible to
consolidate virtually all servers in one area. This would
make the job of the network administrator much easier
just because of the physical location of the equipment.
However, because of security issues and the need for 7
day 24 hour support, the Public Safety systems (Police
and Fire) should be in a separate location. In both
cases, though, the network administrator must have the
tools to manage the network remotely and the connected
workstation configurations.
Given the above, KCG suggests migrating the City's
network strategy to Microsoft BackOffice suite of network
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RECOMMENDATIONS FINAL REPORT
products. The cost of the software (through the State's
CMAS agreement) is roughly $1,400 per server and $150
per connected workstation. This includes the following
capabilities:
■ NT Server — Microsoft's flagship file server
product which supports extended files names,
inherent TCP /IP management, and Windows
3.1, Windows 95, NT Workstation, and
Macintosh clients.
■ Proxy Server — An Internet firewall which
permits controlled access to the Internet with
the assignment of a single IP address by the
ISP.
■ Exchange Server — A robust mail and
messaging engine which can manage both
internal and Internet email and a wide variety
of mail clients.
■ Remote Access Services — This module acts
as a communications server to manage both
incoming and outgoing communications
through the network. With this module, dial -in
access can be made secure with call -back
capabilities and network users can "dial" out
through the network without the need for a
modem in'their individual computers.
■ DHCP Services — Dynamic assignment of IP
addresses so that each workstation does not
have to have a fixed IP address.
CITY OF EL SEGUNDO
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FINAL REPORT RECOMMENDATIONS
■ SQL Server – A fully functional Relational
Database Management System.
■ System Management Services – A
management tool for license monitoring,
hardware inventory, remote workstation
configuration, and performance monitoring.
One additional tool that would greatly improve the
productivity of the network administrator is a Help Desk
system that could record service calls and track them
through resolution, even if the actual repair is being
outsourced. Several product are available to do this, but
one of the most cost effective is Trackit from Blue Ocean
Software for about $1000.
The revised Anixter proposal will deploy three of these
components —NT Server, DHCP Services, and Remote
Access Services —as part of the initial network
installation.
Recommendation #3: Contract with Anixter to install the
reconfigured network.
PAGE 20 OF 30
FINAL
Anixter is one of a handful of firms that qualified to be put
on the State's CMAS (California Multiple Award
Schedule) list. The State, through rigorous bidding
procedures, solicited proposals for various technology
-- products- and - services - which - could -be- purchased by
public agencies statewide. Anixter passed muster and
has many local references that attest to the quality of
their work. It would be counter - productive to spend the
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RECOMMENDATIONS FINAL REPORT
time and the money to develop technical specifications
(which Anixter has already done for free) and solicit
competitive bids. The critical factors are experience,
quality, and financial stability —all of which Anixter has
demonstrated with other public agency contracts during
the past year.
KCG concurs with the design strategy discussed and
presented in their revised proposal and recommends
proceeding with the project..
Recommendation #4: Negotiate an award to Eden Systems
based on the November 1996
proposal modified for current
circumstances.
With the Pentamation proposal as a fallback, contract
discussions should be opened with Eden Systems to
address the following issues:
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
■ Revise the award configuration to the
appropriate state of current technology at or
below proposed pricing.
■ Provide for "platform protection" so that the
City can migrate to their upcoming NT Server
version from the proposed SCO -UNIX version
at no additional cost.
■ Provide for a performance -based payment
schedule.
■ Include all City- required insurance and other
legal contractual provisions into final contract.
PAGE 21 OF 30
FINAL
0 201
FINAL REPORT
RECOMMENDATIONS
Since the City of Chino Hills recently awarded to Eden
Systems, and El Segundo's attorney is the same as
Chino Hills', perhaps the Chino Hills contract may be
able to be modified to contain the above provisions
without excessive effort or delay.
Recommendation #5: Develop Office Automation standards
and implement City -wide upgrade.
There is a wide disparity between the capabilities of the
new, Pentium -class workstations being purchased today,
and the vast majority of older 486 and even 386
workstations installed throughout the City. Aside from
the hardware support issues, supporting the desktop
applications such as word processing, email, and
spreadsheets is almost impossible on the older machine,
especially when there are different versions and even
different products running throughout the City.
The only way the City will be able to manage the
proliferation of technology is to standardize on a common
desktop platform that can be managed centrally. Such
an environment is Windows NT Workstation and Office
97. NT Workstation is part of Microsoft's Zero
Administration Workstation strategy and has the
capability to be managed from a central point. Office 97
includes the following:
■ WORD — A full featured (and industry leading)
word processor.
PAGE 22 OF 30
FINAL
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
0 202
RECOMMENDATIONS
FINAL REPORT
■ EXCEL — A full featured (and industry leading)
electronic spreadsheet.
■ PowerPoint — A graphic and presentation
system.
■ Outlook — A consolidated email, calendar, and
address book system that integrates with
Exchange for messaging and even electronic
FAXing.
To run NT workstation and Office 97, upgrades will be
required to most of the City's workstations to a minimum
of 32MB of RAM and an Intel 486/66 class processor. In
addition, a careful strategy for training, document
conversion, and development of standard templates (for
memos, letters, etc.) must be designed, implemented,
and supported. All of these costs must be factored into
the acquisition of each new workstation. Various
research groups have estimated the "Total Cost of
Ownership" of a networked PC workstation at anywhere
from $8,000 to $15,000 per year when all of the costs of
software, integration, maintenance and support are
considered. Appendix A contains a breakdown of the
person -hours for purchasing, installing, and supporting
each new computer. In addition, replacement costs must
be budgeted just as the City does with vehicles, except
._thatthe_useful life-of a PC-workstation is 3 to 5 years
rather than the 5 to 10 for most vehicles.
The City's current policy of a 3 year replacement cycle
for computer workstations is directed at this issue and
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
PAGE 23 OF 30
FINAL
0 203
FINAL REPORT
RECOMMENDATIONS
will result in a complete upgrade of existing workstations
to new standards within 36 months. All new workstations
would be purchased to conform to these new standards.
It may be necessary to accelerate this schedule to
implement Phase 1 of the Eden system implementation,
and there has been a provision for $65,000 to
accommodate this purpose.
Recommendation #6: Structure technology into the
organization as a strategic resource.
PAGE 24 OF 30
FINAL
Either the City will manage technology or it will be
managed by it. Technology does not solve problems,
people do. There must be policies and procedures built
around the technology to provide for its appropriate and
effective use. Training should be an integral part of the
use of any and all computer systems and should be a
regular part of staff development provided by the Human
Resources department. There must be resources and
budget to maintain the systems and replace them, just as
City vehicles are maintained, then replaced after their
useful lives have expired.
Although the specific number of people and positions
may vary, the following functions must be provided for
within the City's organizational structure:
■ Technology Management — Someone must be
in charge of implementing and enforcing
policies and procedures involving technology
and be a part of the executive decision
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
0 204
RECOMMENDATIONS FINAL REPORT
making process which usually involves the
deployment of technology in some form.
■ Network Administration and Support —
Keeping the network available, monitoring
security and user access, keeping systems
current will be at least a full time job for one
person for every 100 connected computers.
■ Clerical Support — Receiving and logging help
desk calls, routing problems to the appropriate
solution provider, and handling
correspondence and filing (inventory, serial
numbers, warranties, licenses, etc.) will
require at least one full time person for every
100 computers.
■ Application Support — For each major
software application (either enterprise or
departmental) will require a liaison to interface
functional operational problems with the
appropriate technical support, usually from the
vendor. This is typically a department person
who has been given the added assignment for
computer support. It must be written into the
job description and not just allowed to fall to
whoever wants to do it within a department.
'Some of these staffing issues are,being addressed in the
present organizational structure, but the job functions
have evolved gradually. With the creation of the new
Information Systems Manager position, all of the
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
PAGE 25 OF 30
FINAL
0 205
FINAL REPORT RECOMMENDATIONS
PAGE 26 OF 30
FINAL
technology related functions need to be redefined and
appropriate roles and responsibilities assigned.
.All of these issues should be addressed in a Technology
Master Plan which integrates technology as a strategic
resource into the City's overall Strategic Plan. The Plan
should also address other emerging technologies which
include Computer Telephony Integration (i.e. the merging
of the telephone PBX with network file servers),
Document Management (Imaging and archiving), and
printing and graphics. It is likely that these technologies
will further change the way cities do business in the 21st
Century.
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
0 206
APPENDIX A
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
Workstation Costs
PAGE 27 OF 30
FINAL
0 207
FINAL REPORT APPENDIX A
LABOR COSTS FOR A NETWORKED PC
PAGE 28 OF 30
FINAL
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
Person-hours
Task
eque or
urc asing I
HR
15 JACCOuntin§
Aggregate
Determine configuration
requirements
--W-rife—up reques
Analyze for appropriateness
and compatibility with
existing systems
0.5
Write ec nica
specifications for purchase
0.5
Purchase sy m s
o ici quo a Ions propose s
na yze responses for s
and lowest bid
2
Award, Issue PO
eceive goods
Record fixed assets record
0.25
0.25
Record receipt, pay
0.25
0.5
inwice
Record for warranty
tracking for components,
register licenses
Total urc asing
0.5
Install system
ncra e, assem e, test
777
I-Dad third part software, test
repave network accounts
(login ids, passwords,
priveledges)
0.5
Shop tesst network
connectivity
1
0.5
e -package r delivery to
0.25
user
L)eliver to user
Site test
Basic user training ogon,
review installed apps, etc.)
0.5
0.5
Corporate generic raining
(general use policies,
desktop standards, etc.)
2
2
Application raining
Total ns a a ion
14.5
U
2.5
Total ni a Person -hours
Annual Support
Procedural, -usage
problems
4
0.5
Software, con gura ion ugs
Hardware problems
Network, securi y access
problems
2
2
ITotal Annual per
PAGE 28 OF 30
FINAL
CITY OF EL SEGUNDO
INFORMATION SYSTEMS PLAN REVIEW
Summary of Pending Budgeted Information Technology Projects Attachment 4
Core Financial Systems and City -Wide Network Upgrade
(Approved in FY96 -97 CIP Budget
• Core Financial Systems —Eden: Phase I
• Core Financial Systems —Eden and/or
Alternate Vendors Phase II
Eden
Product
Cost
$250,000
110,000
Other
Conversion
Costs Total
$ 56,800 $ 306,800
23,200 133,200
• Network, Cabling, Hardware and Software
to create Local Area Network -- 1459000 145,000
• Contingency for accelerating hardware and software
upgrades of older workstations 65,000 65,000
Total $360,000 $2909000 $650,000
Permit Tracking System
(Approved in FY97 -98 Operating Budget) $ 60,000
Public Library Access to the Internet Increased Communications Costs
(Approved in FY97 -98 Operating Budget) $ 21,000
Various Library Automation Upgrades funded through
Public Library Trust and CA Library Services Act
(Approved in FY97 -98 Operating Budget — Outside Trust Fund) $ 25,000
Website Maintenance
(Approved in FY97 -98 Operating Budget) $ 10,000
Future Technology Initiatives
The core financial systems selection and implementation will provide a flexible architecture for the
addition of future technology initiatives, some of which are still in early stages and cost prohibitive for
smaller cities. Depending upon the expectations of the Council, the cost for these additional
technolaOes could be $1 million to $2 million ply& It is important to realize that the pace of technology
advances makes long range planning estimates far less meaningful in this field. Unlike a master plan for
sewer upgrades, the useful lives of the infrastructure is more dependent upon obsolescence, and initial
investment costs are subject to emerging technology and cost breakthroughs. Below are several future
technology visions for consideration in the future.
• Expansion of Internet Access • Records Management
• Advanced office automation • Document Imaging
• Expansion of Website • Performance Measurement Budgeting
• Geographic Information Systems • Interactive Voice Comment at Public Meetings
• Upgrade of Telephone Switch to Link with Network Computing
0 209
Forecast of Estimated Timeline for
Financial Systems Component of MIS Project
Attachment S
FY 97 -98 Activities
August 5 MIS Project Status Report;
Request for Approval In Concept for Core Financial Software Vendor;
Recommendations concerning other Technology Issues (Network Upgrades,
Utilities Software, Standardization of equipment and office automation)
September 2'd Approve Contract as negotiated
or 16th
Sept.- November Develop detailed timetable, begin creating programs to convert data, build
file structures and tables in new system;
November Receive fileserver Hardware Delivery and commence software
implementation
December -January Data Entry, table set -up and Parallel Testing and Conversion of P/R
Subsystem
February -May Data Entry, table set -up and Parallel Testing and Conversion of GAL
System and subsystem inputs
Human Resource System will begin Conversion from manual records after
Payroll Conversion has been completed
Components such as position control, applicant tracking, etc. will
be prioritized and implemented on a phased basis.
FY 98 -99
July 1, 1998 Full Conversion and Interface of New P/R, H/R, and General Ledger Systems
August -Nov. Entry, Testing and Conversion of subsystems (Cashiering, A/P, Budgeting,
Business Licensing, Utility Billing) plus programming and testing
of interfaces with other existing subsystems (fleet management and
inventory systems)
January 1, 1999 Implementation of remaining subsystems.
(At this point all PSI supported systems will have been retired.)
Begin FY98 -99 Budget process using new Budgeting System
November -April Entry, Testing and Implementation of New Purchasing Subsystem
July 1, 1999 Full Implementation of Automated Purchasing Subsystem with all Core
Financial Systems
0 210
EL SEGUNDO CITY COUNCIL MEETING DATE: August 5, 1997
AGENDA ITEM STATEMENT AGENDA HEADING: New Business -City Manager
AGENDA DESCRIPTION:
Amendment to contract between the Board of Administration of the Public Employees Retirement System and the City
Council of the City of El Segundo, providing Section 21574 (Fourth Level of 1959 Survivor Benefits) for local Police
members as required by the El Segundo Police Officer's Association 1997 -2000 Memorandum of Understanding. Fiscal
Impact: The current surplus of assets in this benefit account is projected by PERS to be sufficient to pay the employer
cost for 25 years.
RECOMMENDED COUNCIL ACTION:
1. Read Resolution by title only.
2. Adopt Resolution.
3. Provide for first reading of the Ordinance.
4. Schedule second reading and adoption for September 2, 1997.
5 Authorize the Mayor to sign agreement pooling 1959 Survivor Benefits Assets and Liabilities.
INTRODUCTION AND BACKGROUND:
Under Public Employees Retirement Law, certain optional contract provisions are available to local public agencies.
Adoption of the Resolution of Intention, reading of the Ordinance, and signing of the Agreement are required to amend
the City's contract with the Public Employees Retirement System (PERS) to provide the enhanced Section 21574 (Fourth
Level of Survivor Benefits) for our sworn Police Safety personnel.
Amendment of the City's contract with PERS to provide the Fourth Level of 1959 Survivor Benefits is required by Item
#6 of the 1997 -2000 Memorandum of Understanding between the City of El Segundo and the El Segundo Police
DISCUSSION:
The Fourth Level of 1959 Survivor Benefits provides an enhanced monthly allowance to survivors of a Police Safety
member who dies prior to retirement.
Funding for the Fourth Level of 1959 Survivor Benefits is based on the pooled experience of all participating public
agencies rather than individual agency experience.
The current employer paid cost is $8.50 per covered member per month. The current employee paid cost is $2.00 per
month.
According to PERS, this coverage group has a projected surplus of assets for this benefit amounting to $166,800. This
surplus is used to pay the employer cost and PERS projects the surplus to be sufficient for 25 years.
ATTACHED SUPPORTING DOCUMENT
Resolution, Ordinance, Agreement, and Amended Contract documents provided by PERS Actuarial and Employer
Services Division.
FISCAL IMPACT: (Check one) Operating Budget: Capital improv. tsuaget:
Amount Requested:
Project/Account Budget:
NONE Project/Account Balance: Date:
Account Number:
Project Phase:
Appropriation Required -Yes No
ORIGINATED: Date: July 22, 1997
Bob I
REV[
Director of Human Resources /R anagement
AKEN:
Date:
agenda.269
0 211
RESOLUTION NO.
A RESOLUTION OF INTENTION TO APPROVE
AN AMENDMENT TO CONTRACT
BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO
WHEREAS, the Public Employees' Retirement Law permits the participation of
public agencies and their employees in the Public Employees' Retirement System by the
execution of a contract, and sets forth the procedure by which said public agencies may
elect to subject themselves and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the
adoption by the governing body of the public agency of a resolution giving notice to its
intention to approve an amendment to said contract, which resolution shall contain a
summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
Police members only.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of intention to approve an amendment to the contract between said
public agency and the Board of Administration of the Public Employees' Retirement System, a
copy of said amendment being attached hereto, as an "E*hibit" and by this reference made a part
hereof.
The City Clerk shall certify to the passage and adoption of this resolution; shall enter the
same in the book of original resolutions of said city; and shall make a minute of the passage and
adoption thereof in the records of the proceedings of the City Council of said city, in the minutes
of the meeting at which the same is passed and adopted.
PASSED, APPROVED AND ADOPTED this 5th day of August 1997.
Sandra Jacobs, Mayor of the
City of El Segundo, California
ATTESTED:
Cindy Mortesen,
City Clerk (SEAL)
APPROVED AS TO FORM:
4t Mark Hensley, My Attorney
h: \counci1\41v1nbp0.ree 0 212
EXHIBIT
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF EL SEGUNDO
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective October 1, 1943, and witnessed August 25, 1943, and as
amended effective November 1, 1947, August 1, 1949, July 1, 1950, November 1, 1955,
September 1, 1958, March 9, 1959, November 7, 1964, October 19, 1968, December 11, 1971,
July 20, 1974, July 19, 1975, January 3, 1976, July 16, 1977, June 3, 1978, February 6, 1982,
April 3, 1982, January 1, 1992, June 27, 1992, May 15, 1993, January 8, 1994, January 19, 1996
and April 4, 1997 which provides for participation of Public Agency in said System, Board and
Public Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective
April 4, 1997, and hereby replaced by the following paragraphs numbered 1 through 12
inclusive:
1. All words and terms used herein which are defined in the Public Employees'
Retirement Law shall have the meaning as defined therein unless otherwise
specifically provided. "Normal retirement age" shall mean age 60 for local
miscellaneous members and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from
and after October 1, 1943 making its employees as hereinafter provided, members
of said System subject to all provisions of the Public Employees' Retirement Law
except such as apply only on election of a contracting agency and are not provided
for herein and to all amendments to said Law hereafter enacted except those,
which by express provisions thereof, apply only on the election of a contracting
agency.
3. Employees of Public Agency in the following classes shall become members of
said Retirement System except such in each such class as are excluded by law or
this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
0 213
11
:. �;U i ii ! 6iUi� L�oMbi I Ui1L�
C. Employees other than local safety members (herein referred to as local
miscellaneous members).
4. In addition to the classes of employees excluded from membership by said
Retirement Law, the following classes of employees shall not become members of
said Retirement System:
NO ADDITIONAL EXCLUSIONS
5. Prior to January 1, 1975, those members who were hired by Public Agency on a
temporary and /or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 superseded this
contract provision by providing that any such temporary and /or seasonal
employees are excluded from PERS membership subsequent to January 1, 1975.
Legislation repealed and replaced said Section with Government Code Section
20305 effective July 1, 1994.
6. The percentage of final compensation to be provided for local miscellaneous
members for each year of credited prior and current service shall be determined in
accordance with Section 21353 of said Retirement Law, subject to the reduction
provided therein for service on and after January 1, 1956, the effective date of
Social Security coverage, for members whose service has been included in
Federal Social Security (2% at age 60 Full and Modified).
7. The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member shall be determined in
accordance with Section 21362 of said Retirement Law (2% at age 50 Full).
8. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624 and 21626 (Post- Retirement Survivor Allowance).
b. Section 21571 (Basic Level of 1959 Survivor Benefits).
C. Section 21222.1 (Special 5% Increase - 1970). Legislation repealed said
Section effective January 1, 1980.
d. Section 21222.2 (Special 5% Increase - 1971). Legislation repealed said
Section effective January 1, 1980.
e. Section 21024 (Military Service Credit as Public Service), Statutes of
1976.
0 214
f. Section 20042 (One -Year Final Compensation).
g. Section 21573 (Third Level of 1959 Survivor Benefits).
h. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local police
members only.
9. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with respect
to local miscellaneous members and local safety members of said Retirement
System.
10. Public Agency shall also contribute to said Retirement System as follows:
a. Per covered member, $1.50 per month on account of the liability for the
1959 Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and liabilities of
Public Agency and its employees shall be pooled in a single account,
based on term insurance rates, for survivors of all local safety members.
b. Per covered member, $8.50 per month on account of the liability for the
1959 Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and liabilities of
Public Agency and its employees shall be pooled in a single account,
based on term insurance rates, for survivors of all local police members.
C. A reasonable amount, as fixed by the Board, payable in one installment
within 60 days of date of contract to cover the costs of administering said
System as it affects the employees of Public Agency, not including the
costs of special valuations or of the periodic investigation and valuations
required by law.
d. A reasonable amount, as fixed by the Board, payable in one installment as
the occasions arise, to cover the costs of special valuations on account of
employees of Public Agency, and costs of the periodic investigation and
valuations required by law.
11. Contributions required of Public Agency and its employees shall be subject to
adjustment by Board on account of amendments to the Public Employees'
Retirement Law, and on account of the experience under the Retirement System
as determined by the periodic investigation and valuation required by said
Retirement Law.
0 215
i
12. Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen days after the end of the
period to which said contributions refer or as may be prescribed by Board
regulation. If more or less than the correct amount of contributions is paid for any
period, proper adjustment shall be made in connection with subsequent
remittances. Adjustments on account of errors in contributions required of any
employee may be made by direct payments between the employee and the Board.
B. This amendment shall be effective on the day of , 19
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYS --kEM OF THE
CITY OF EL SEGUNDO
B
BY
Y
KENNETH W. MARZION, CHIEF PRESIDING OFFICER,,,.."
ACTUARIAL & EMPLOYER VICES DIVISION
PUBLIC EMPLOYEES' REREMENT SYSTEM
-,, Witness Date,
Attest: .
AMENDMENT
PERS- CON -702A (Rev. 8 \96)
Clerk
0 216
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO, CALIFORNIA, AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN
THE CITY COUNCIL OF THE CITY OF EL SEGUNDO
AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM.
WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement System by the execution of
a contract, and sets forth the procedure by which said public agencies may elect to subject
themselves and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption by
the governing body of the public agency of a resolution giving notice of its intention to approve
an amendment to said contract, which resolution shall contain a summary of the change proposed
in said contract.
NOW THEREFORE, the City Council of the City of El Segundo does ordain as follows:
SECTION 1. That an Amendment to the contract between the City Council of the City
of El Segundo, California and the Board of Administration, California Public Employees'
Retirement System, is hereby authorized, a copy of said Amendment being attached hereto,
marked Exhibit, and by such reference made a part hereof as though herein set out in full.
SECTION 2. The Mayor of the City Council of the City of El Segundo is hereby
authorized, empowered, and directed to execute said amendment for and on behalf of said
Agency.
SECTION 3. The Ordinance shall take effect thirty (30) days after the date of its
adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be posted
in at least three (3) places throughout the City Hall of the City of El Segundo, California, 350 Main
Street, El Segundo, California, located in Los Angeles County and thenceforth and thereafter the
same shall be in full force and effect.
SECTION 4. The City Clerk is directed to certify the adoption of this ordinance and shall
cause the same to be published or posted in the manner prescribed by law.
PASSED, APPROVED and ADOPTED this day of 1997•
Sandra Jacobs, Mayor of the
City of El Segundo, California
ATTESTED:
Cindy Mortesen,
City Clerk (Seal)
APPROVED AS TO FORM:
Ma k City Attorney 0 217
H1COUNCI U4Nlsbpo.ord
EXHIBIT
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF EL SEGUNDO
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as
Board, and the governing body of above public agency, hereinafter referred to as Public Agency,
having entered into a contract effective October 1, 1943, and witnessed August 25, 1943, and as
amended effective November 1, 1947, August 1, 1949, July 1, 1950, November 1, 1955,
September 1, 1958, March 9, 1959, November 7, 1964, October 19, 1968, December 11, 1971,
July 20, 1974, July 19, 1975, January 3, 1976, July 16, 1977, June 3, 1978, February 6, 1982,
April 3, 1982, January 1, 1992, June 27, 1992, May 15, 1993, January 8, 1994, January 19, 1996
and April 4, 1997 which provides for participation of Public Agency in said System, Board and
Public Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective
April 4, 1997, and hereby replaced by the following paragraphs numbered 1 through 12
inclusive:
1. All words and terms used herein which are defined in the Public Employees'
Retirement Law shall have the meaning as defined therein unless otherwise
specifically provided. "Normal retirement age" shall mean age 60 for local
miscellaneous members and age 50 for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from
and after October 1, 1943 making its employees as hereinafter provided, members
of said System subject to all provisions of the Public Employees' Retirement Law
except such as apply only on election of a contracting agency and are not provided
for herein and to all amendments to said Law hereafter enacted except those,
which by express provisions thereof, apply only on the election of a contracting
agency.
3. Employees of Public Agency in the following classes shall become members of
said Retirement System except such in each such class as are excluded by law or
this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
0 218
R, Sp A
DO Nt 0 i �,�L�id � %\i fIL3� � WiL
C. Employees other than local safety members (herein referred to as local
miscellaneous members).
4. In addition to the classes of employees excluded from membership by said
Retirement Law, the following classes of employees shall not become members of
said Retirement System:
NO ADDITIONAL EXCLUSIONS
5. Prior to January 1, 1975, those members who were hired by Public Agency on a
temporary and/or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 superseded this
contract provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January 1, 1975.
Legislation repealed and replaced said Section with Government Code Section
20305 effective July 1, 1994.
6. The percentage of final compensation to be provided for local miscellaneous
members for each year of credited prior and current service shall be determined in
accordance with Section 21353 of said Retirement Law, subject to the reduction
provided therein for service on and after January 1, 1956, the effective date of
Social Security coverage, for members whose service has been included in
Federal Social Security (2% at age 60 Full and Modified).
7. The percentage of final compensation to be provided for each year of credited
prior and current service as a local safety member shall be determined in
accordance with Section 21362 of said Retirement Law (2% at age 50 Full).
8. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624 and 21626 (Post- Retirement Survivor Allowance).
b. Section 21571 (Basic Level of 1959 Survivor Benefits).
C. Section 21222.1 (Special 5% Increase - 1970). Legislation repealed said
Section effective January 1, 1980.
d. Section 21222.2 (Special 5% Increase - 1971). Legislation repealed said
Section effective January 1, 1980.
e. Section 21024 (Military Service Credit as Public Service), Statutes of
1976.
0 219
M
7 ' G Ck� 1 U T ONLY
£ Section 20042 (One -Year Final Compensation).
g. Section 21573 (Third Level of 1959 Survivor Benefits).
h. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local police
members only.
9. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with respect
to local miscellaneous members and local safety members of said Retirement
System.
10. Public Agency shall also contribute to said Retirement System as follows:
a. Per covered member, $1.50 per month on account of the liability for the
1959 Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and liabilities of
Public Agency and its employees shall be pooled in a single account,
based on term insurance rates, for survivors of all local safety members.
b. Per covered member, $8.50 per month on account of the liability for the
1959 Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and liabilities of
Public Agency and its employees shall be pooled in a single account,
based on term insurance rates, for survivors of all local police members.
C. A reasonable amount, as fixed by the Board, payable in one installment
within 60 days of date of contract to cover the costs of administering said
System as it affects the employees of Public Agency, not including the
costs of special valuations or of the periodic investigation and valuations
required by law.
d. A reasonable amount, as fixed by the Board, payable in one installment as
the occasions arise, to cover the costs of special valuations on account of
employees of Public Agency, and costs of the periodic investigation and
valuations required by law.
11. Contributions required of Public Agency and its employees shall be subject to
adjustment by Board on account of amendments to the Public Employees'
Retirement Law, and on account of the experience under the Retirement System
as determined by the periodic investigation and valuation required by said
Retirement Law.
0 220
12. Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen days after the end of the
period to which said contributions refer or as may be prescribed by Board
regulation. If more or less than the correct amount of contributions is paid for any
period, proper adjustment shall be made in connection with subsequent
remittances. Adjustments on account of errors in contributions required of any
employee may be made by direct payments between the employee and the Board.
B. This amendment shall be effective on the
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTFav
BY
KENNETH W. MARZION, CHIEF S
ACTUARIAL & EMPLOYER SI t6�CES DIVISION
PUBLIC EMPLOYEES' RETIRAENT SYSTEM
AMENDMENT
PERS- CON -702A (Rev. 8 \96)
day of
CITY COUNCIL
OF THE
CITY OF EL SEGUNDO
Witness Date
Attest:
Clerk
19
0 221
AGREEMENT TO POOL
1959 SURVIVOR BENEFITS
ASSETS AND LIABILITIES
BETWEEN THE
BOARD OF ADMINISTRATION OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO
WHEREAS, Government Code Section 21574 provides for a single employer rate to be
established to provide benefits under said Section on account of members
employed by contracting agencies electing to include the provision of said
Section in their contracts; and
WHEREAS, Government Code Section 21574, requires pooling of all assets and liabilities
of all contracting agencies subject to said Section;
NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of El Segundo
and its covered employees shall be pooled pursuant to the provisions of
Government Code Section 21574.
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
By
Kenneth W. Marzion, Chief
Actuarial & Employer Services Division
Public Employee's Retirement System
Date
hAcouncAmben -4. agr
CITY COUNCIL OF THE
CITY OF EL SEGUNDO
By
Sandra Jacobs, Mayor of the
City of El Segundo, California
Date
0 224
CITY OF EL SEGUNDO
MEMORANDUM
DATE: July 22, 1997
TO: Honorable Mayor and Members of the City Coun
FROM: Mike Gordon, Councilmember 4�,
SUBJECT: Formation of City Council Subcommittee to Investigate Feasibility of Alternative
Water Purchases
As we have all witnessed over the past several years, the cost of water to the City has
dramatically increased. Discussions with members in the southern California water industry
indicate a high probability that this trend could continue. The City's total reliance on the
Metropolitan Water District (MWD) as our source for potable water places us in a situation
where we are at their mercy.
I am requesting that the City Council consider forming a City Council Subcommittee to
investigate the feasibility of the City purchasing or developing water sources from other than
MWD. The goal of the Subcommittee would be to move the City away from total reliance on
MWD and toward a position where we have a greater ability to ensure that the City's water costs
are as low as possible.
ES.joa
[n: \council \gordon \waterate.sub]
0 223
City of El Segundo
Inter Departmental Correspondence
July 30, 1997
To: Mayor and City Council
From: Councilwoman Jane Friedkin
Subject: Agenda Item for August 5, 1997 meeting
AGENDA DESCRIPTION: Parking of vehicles in front yard (lawn area) in residential zones.
Parking of vehicles in the front yard of residential zones defeats the purpose of requiring
landscaping and is unsightly. The County of Los Angeles recently adopted an ordinance to
prohibit such an act and established a fine for violation of this prohibition. The attached
newspaper article and ordinances indicate such a prohibition is not uncommon.
RECOMMENDED COUNCIL ACTION: I am requesting Council support in referring this
matter to the Planning Commission for a recommendation back to the City Council.
h #� A 4
D /��` ����1 /�, iffy 0A
the property owners," said Glenda
Wina, a spokeswoman for Inglewood -ar-
ea Supervisor Yvonne Braithwaite
Burke, who sits on commission.
Inglewood Associate Planner William
Barnett said his city was hoping to gain
control of the land to complete its
boundaries.
"We would just feel more comfortable
if we were the custodians of the proper-
ty," Barnett said. "I'm not sure what we
will do."
Inglewood can reapply for annexation
in one year, LAFCO officials said.
— Copley News Service
LOS ANGELES COUNTY
Parking cars on lawn
now carries a fine of $55
Motorists who park their cars on
front lawns could be hit with a $55 fine
under an ordinance adopted this week
by the Board of Supervisors. The new
law applies to unincorporated areas
such as Lennox, Ladera Heights and Ma-
rina del Rey.
"It is another tool to clean up commu-
nities and help enforce the law," said
South Bay Supervisor Don Knabe.
"One or two cars on the lawn makes
the whole neighborhood look bad," said
Tina Economides, spokeswoman for
Sheriffs Department, which proposed
the ordinance. "The purpose of the law
family life, the accused murderer cast
himself as victim.
For two years, Tuccinardi testified, he
suffered from depression and an anxiety
disorder that resulted in him taking a
plethora of medications and undergoing
three terrifying and painful electrocon-
vulsive, or shock treatments.
During that period, his family — in-
cluding three older children — had all
but abandoned him emotionally, his wife
even going against his doctor's advice
and remaining absent during his shock
treatments.
Some of the wrenching problems that
characterized Tuccinardi's troubled life
in the months leading to his wife's death
included his 16- year -old daughter's own
severe depression; his attempted suicide
by swallowing a bottle of his sister's pain
pills; and Karen Tuccinardi leaving him
for seven weeks.
Still under medication, Tuccinardi,
who said he took an extra antidepres-
sant before taking the witness stand in
the Torrance courtroom Wednesday, said
he loved his wife and the children who
L_.._ rl--a .. ..._- ._..Q.l d....lu _+ + n..n._n♦
is to enhance the community."
The law takes effect in 60 days; offi-
cials said that will give residents plenty
of time to move any heaps off their
lawns.
A county zoning ordinance already
penalizes property owners for parking
cars on their front yards. It carries fines
of $100 for first -time offenders and six
months in jail for a fourth violation.
Sheriffs officials said this ordinance
has been rarely enforced.
Last year, the city of Los Angeles im-
posed fines on motorists who use lawns
for a parking space. Violators of the city
ordinance pay $30 for the first offense,
SMfor the second and $105 for the third.
After the city passed the ban, the
Sheriffs Department was inundated
with calls from angry residents who
wanted lawn- parking outlawed in coun-
ty territory, Economides said.
Other areas affected by the new law
include Baldwin Hills, Athens, Del Aire,
View Park and unincorporated neigh-
borhoods around Carson, Westchester
zmd Inglewood.
— Copley News Service
tion and other health problems for which
she refused to seek treatment.
Before her death, Karen Tuccinardi
had grown unable to cope with his ill-
ness, her husband testified. She planned
to visit her sister in Boston and issued a
severe ultimatum. "She said, 'If you don't
get well by the time I get back, you're
going to have to leave here. I'm not leav-
ing this house again.'"
As usual, his wife fell asleep on the
couch the night of her death. He awoke
in his bed at 3 a.m. in a panic attack,
Tuccinardi testified. "I woke up real ear-
ly in the morning with horrible chest
pains, terrible stomach pains and a chok-
ing sensation in my throat."
He went downstairs to awaken his wife
to drive him to the hospital. But she
became enraged, saying "I'm not taking
you anywhere." Instead, she turned on
him with a ballpeen hammer from the
garage, then the butcher knife from the
kitchen.
Wife called `very strong'
Tuccinardi described his wife, a thin
woman, as physically "very strong." In
■ The Wilmington Historical Society
has selected its management board for
1997 -98. New officers are Gwen Butter-
field, president; David Esparza, vice
president; Gussle Linebarger, record-
ing secretary; Evelyn Romberg, treasur-
er; and Jane Osterhoudt, historian.
Since 1988, the society has studied and
helped preserve the history of Wilming-
ton, collecting and storing artifacts.
A speakers bureau and newsletter are
available to local school and community
groups, and the society's monthly pro-
grams, field and research trips are open
to the public.
1
Wednesday
SUPER LOTTO: 6 11 17 26 27 38
JACKPOT TOTAL: $33 million
DAILY 3: 5 9 1
Daily 3 prizes can vary depending on
the amount of money wagered and the
number of winners.
FANTASY 5: 9 14 16 22 30
INFORMATION: Call 800 - 846 -1847
Breakup
FROM PAGE A 1
quirement laid down in the state law.
"Wisdom prevailed today," said Ste
phanie Carter of Tarzana, co- chairwom
an of Finally Restoring Excellence in Ed
ucation, a group supporting breakup o:
Los Angeles Unified. "We can move for
ward now to the next battle."
Ruth Perez, chairwoman of Garden
School Reform, said the regulations pro
posed earlier would have required citi
zen groups to pay "hundreds of thou
sands of dollars" to consultants just tc
navigate the petition process.
"With the regulations (issue) being
cleared, that will definitely open the door
for us to continue on," said Perez, whose
group has been working since November
to create an 11,000- student school district
in Gardena. ((�� ??
Eleanor Leo, a senior legislatigL -
lyst for LAUSD, predicted the new policy
will open the door to legal challenges
JLINI []I iLlvl GLU -UbJG i "•i -Ji tU•U5rii4: ALAILIAM )LKF,LLJ-
COUNTY OF LOS ANGELES
ORDINANCE NO. 97--00 9
An ordinance amending Title 15 - Vehicles and Traffic of the Los Angeles County
Code relating to parking restrictions and fees.
The Board of Supervisors of the County of Los Angeles ordains as follows:
SECTION 1. Section 15.64.271 is added to read as follows:
15 64 271 Parking in Front Yard A person shall not park any vehicle in the front
yard corner side yard or any additional area of a lot or parcel of land situated between
the public right of way and any residence or accessory building or structure located
therein except that the parking of non - commercial vehicles is permitted in a driveway.
SECTION 2. Section 15.200.10 is amended to add the following-
15.200.010 Civil penalties for violations of parking laws. .
Section Description Penalty
15,64,271 PARKING IN FRONT YARD $55.00
[15200010.COCj
0 226
JLlil Jl • UJ t- "Ju"'� I I .I ui -..•UJ:.:,. i -A
COUNTY OF LOS ANGELES
ANALYSIS
This ordinance would prohibit a person from parking a vehicle in the
front yard of any residential property and impose a penalty of $55 for each
violation.
DE WITT W. CLINTON
County Counsel
By
GORDON W. TRASK
Principal Deputy County Counsel
G1NT:jb
5/16/97
0 227
CITY OF LOS ANGELES
§12.21 MUNICIPAL CODE Ch.I,Art.2
(Rcv. No. 46 - 1992) C 1 -204
l� •
(f) No accessory building shall be structurally altered, converted,
enlarged or maintained for the purpose of providing living quarters
or dwelling units unless such accessory building and all enlarge-
ments thereof are made to conform to all the regulations of this
article for new buildings.
(g) (Amended by Ord. No. 164,563, Eff. 5/5/89.) Every required i
front, side and rear yard shall be open and unobstructed from the
ground to the sky, except for those projections permitted by Sections
12.08.5, 12.09.5 and 12.22 of this Code. {{
No automobile parking space shall be provided or maintained
within a required front yard. Except where a lot is developed with a
building meeting the requirements of Section 12.08.3 B 1 of this 4
Code not more than 50 percent of a required front yard shall be }
. "
designed, improved or used for access driveways.
All portions of the required front yard of two family dwellings,
multiple dwellings or group dwellings, apartment houses, hotels,
motels, apartment hotels and retirement hotels in the RD, R3, R4,
R5, or C Zones not used for necessary driveways and walkways,
including decorative walkways, shall be landscaped, and shall not
otherwise be paved. Such landscaping shall be in accordance with a
landscape plan prepared by a licensed landscape architect, licensed
architect, or landscape contractor to the satisfaction of the Depart- _
ment of City Planning. At least one tree shall be provided for each
{'
500 square feet of unpaved area. Such trees shall be at least 15 gallon
in size and at least six feet in height at the time of planting. All
landscaped areas shall be equipped with an automatic irrigation
system and shall be maintained.
A fee of $25.00 shall be paid to the Department of City Planning
for the checking of landscape plans, pursuant to this paragraph.
However, the fee shall be waived if any other fee has been paid for
checking of landscape plans for the same property. .
No swimming pool, fish pond or other body of water which is
designed or used to contain water 18 inches or more in depth shall be
permitted in any required yard space in which fences over 3 1/2 feet
in height are prohibited, even though such pool, pond or body of
water extends below the natural ground level adjacent thereto.
(Rcv. No. 46 - 1992) C 1 -204
l� •
CITY OF LOS ANGELES
Ch.1,Art.2
ZONING § 12.21
(h) At each end of a through lot there shall be a front yard of the
depth required by this article for the zone in which each street
frontage is located, except that only one front yard need be provided
on those through lots which abut on a primary, major or secondary
highway, as such highways are shown on the "Highways and Free-
ways Element of the General Plan," when the rights to vehicular
ingress and egress from such through lots to the highway have been
abandoned or prohibited by a tract restriction as a condition prece-
dent to the approval of the recordation of the subdivision in which
such through lots are included. Where only one front yard is required
on a through lot, as provided herein, the rear yard shall be located on
the portion of such lot adjacent to the highway. (Amended by Ord.
No. 141,821, Eff. 5/24/71.)
rr -- Where a through lot is less than 150 feet in depot or is developed
as a single building site, and the two required front yards are pro -
vided, no rear yard is required.
(i) No required yard or other open space around an existing
building shall be separated in ownership from the portion of the lot
upon which the building is located.
0) The area of a lot upon which a building or use is located shall
not be reduced below the total area required for all of the dwelling
units or guest rooms contained in the building or required for the
specific use, or required because of the height or total floor area
contained in the building, by separating the ownership of a portion of
the lot from that upon which the building or use is located. No
required lot which is provided for a dwelling unit, guest room,
specific use or total floor area within a building shall be considered
as providing the required lot area for any other dwelling unit, guest
room, specific use or total floor area within a building. (Amended
by Ord. No. 110,225, Eff. 11/23/57.)
(k) No lot or parcel of land held under separate ownership at the
time this article becomes effective shall be separated in ownership or
reduced in size below the minimum lot width or lot area required by
this article, nor shall any lot or parcel of land held under separate
ownership at the time this article becomes effective and which has a
width or an area less than that required by this article be further
reduced in any manner.
(l) In determining the required side and rear yards of a building,
any basement containing habitable rooms shall be considered a story.
(Added by Ord. No. 131,309, Eff. 4/24/66,)
See citation under Sec. 12.21 -C,1, (a)
C 1 -205 (Rev. No. 46 - 1992)
0 229
CITY OF MANHATTAN BEACH 10.64.020
F. Location and Ownersbip.
On -site /Off -site Parking. Parking required to serve a residential use shall be on the same site
as the use served, except that subject to approval of the Community Development Director,
parking for Group Residential and Residential Care may be located on a different site under
the same or different ownership within 150 feet of the use served, measured from the parking
facility to the public entrance of the use served via the sbortest pedestrian route. Parking
required to serve a nonresidential use may be on the same or a different site under the same
or different ownership as the use served, provided that parking shall be within the following
distances of the use served, measured from the near corner of the parking facility to the
public entrance of the use served via the shortest pedestrian route:
CustomerNisitor Spaces: 200 ft. Employee 55gaces: 400 ft.
Ilu: Parking spaces located within the CD district may serve as required parking for
a nonresidential use located within the same district at a maximum distance of 1000 feet.
2. Ping in Yards in R Districts. Required yards and open space shall not be used for parking
except as follows:
a, All Area Distcicts: Up to 20 feet of the width of the access drive to the garage may be
used for non - required unenclosed parking.
b. Area Districts M and N: One interior side yard may be used for unenclosed parking.
c. All Area Districts: Within an enclosed accessory building as permitted by Section
10.52050.
3, Parking in Yards in C or I Districts. Required yards may be used for required parking,
subject to the landscaping standards of Section 10.60.070 and screening requirements of
Section 10.64.160.
4, Alley Access. When a street -alley lot in Area Districts I and II adjoins an improved alley,
then access to parking shall be provided from the alley unless a minor exception is approved
under the provisions of Section 10.84.120.
5. Parking in R District$. Non - residential parking shall not be located in any R zoned property,
except on the east side of Oak Avenue. Residential properties on the east side of Oak
Avenue, when developed for commercial parking purposes used in conjunction with business
fronting upon and having vehicular access to Sepulveda Boulevard, shall not utilize vehicular
access to Oak Avenue between the hours of 10:00 p.m. to 6:00 a.m. daily.
G. Life of Facility. Facilities for off -site parking shall be restricted to that use by a recorded deed,
lease, or agreement for a minimum period of 10 years from the date a use permit requiring the
parking or a Certificate of Occupancy is issued, provided that the Community Development
Director may lift the restriction upon finding that substitute parking facilities meeting the
64-3 Reprint No. 5 - January 20, 1994
0 230
City of El Segundo
Inter - Departmental Correspondence
July 30, 1997
To: City Council
From: Councilman Liam Weston and Mayor Sandra Jacobs
Subject: Agenda Item for August 5, 1997 meeting
AGENDA DESCRIPTION: Report to City Council by Electric Energy Aggregation
Subcommittee of Councilman Weston and Mayor Jacobs and possible action to retain technical
support to develop aggregation plan and identify market potential.
A full report will be delivered to the members of the City Council no later than Monday,
August 3, 1997 at 12 noon.
RECOMMENDED COUNCIL ACTION: Discussion and possible action.
0 231
M
08/05/97 TUE 18:58 FAX 213 238 2700 BURKE WILLIAMS zoos
TTLEMENT--AGREEME
1. This settlement Agreement ( "Agreement ") is made by
Charlotte A. Hayes (hereinafter referred to as "MS. Hayes "), and is
given to, and for the benefit of, the City of E1 Segundo ( "City")
with reference to the following facts and circumstances:
a. A dispute has arisen between Ms. Hayes and the City
reflected in an action filed by Ms. Hayes now pending in the
Superior Court of the State of California, county of Los
Angeles, Southwest District, entitled "Haves. v. City of El
Secrundo," and numbered as YC 026759 (said action is
hereinafter referred to as "Dispute").
b. The purpose of this Agreement is to settle the
lawsuit by dismissing all claims which Ms. Hayes now has or
has ever had against the City.
2. In consideration of the City's payment of the sum of
$10,000.00, receipt of which hereby acknowledged,, and the execution
and delivery this Agreement, together with an executed Request for
Dismissal with Prejudice, Ms. Hayes hereby releases and discharges
the City of and from any and all causes of action, damages,
demands, costs, debts, losses, liabilities, claims, accounts,
reckonings, obligations expenses, liens, rights and demands of
whatsoever kind or nature which it now has or has ever had against
the City arising out of or in any way connected with said Dispute
or otherwise. This release and discharge extends to all past and
present elected officials, directors, officers, administrators,
LW;1u1x.z
employees, agents and attorneys of the City, and each of them. In
this connection, Ms. Hayes waives the provisions of Section 1542 of
08/05/97 TUE 16:58 FAX 213 236 2700 BURKE WILLIAMS
the Civil Code of the State of California, and any other similar
statute or provision of any state or nation, which provides as
follows:
A general release does not extend to claims
which the creditor does not know or suspect to
exist in his favor at the time of executing
the release, which if known by him must have
materially affected his settlement with the
debtor.
3. Ms. Hayes acknowledges that the facts with respect to
which she gives this release may turn out to be different from the
facts she now believes to be true. Ms. Hayes hereby assumes the
risk of the facts turning out to,be different, and agrees that this
Agreement shall be in all respects be effective and not subject to
termination or rescission because of any such difference.
4. Ms. Hayes understands and agrees that the exchange of
W; 4-h Nsr
this Agreement, the Request for Dismissal wii re Prejudice and the
City's payment of $10,000.00 are being given as consideration to
compromise disputed claims and that said exchange is not to be
considered an admission of liability on the part of the City. The
City denies that it has any liability to Ms. Hayes and asserts that
the consideration paid herein is to avoid further expenses of
litigation. Ms. Hayes hereby represents, warrants and agrees that
this settlement and Agreement shall not constitute nor be offered
in evidence in any forum or any proceeding, in court or otherwise,
as evidence of any liability, upon any theory, on the part of the
City, its officials, officers or agents.
5. Ms. Hayes hereby covenants and warrants that she has not
assigned nor sold any of the said claims, demands or causes of
UM:185854.2 -2-
Z009
06/05/97 TUE 16:56 FAX 213 238 2700 BURKE WILLIAMS Z010
+ r i
action and hereby agrees to indemnify and hold the City harmless as
against any claim, debt, liability, demand, obligation, cost,
expenses, action or cause of action based on, or arising out of, or
in connection with any transfer or assignment or purported transfer
or assignment.
6. Ms. Hayes tenders herewith a fully executed Request for
Dismissal with Prejudice of said action, in the form of Exhibit A
hereto, and authorizes its filing with the Clerk of the Court in
which said action is pending.
7. The City and Ms. Hayes shall bean their own respective
costs and attorneys, fees arising.from the Dispute.
8. Ms. Hayes affirmatively represents that she has been
represented throughout by Bookman & Weiss of Encino, California,
who are attorneys at law of her,own choosing. Ms. Hayes has read
this Agreement and has had the terms used herein and the
consequences thereof explained by her above -named attorneys of
choice.
9. Each party hereto represents and warrants that they have
full power and authority to enter into this Agreement, and to do
all the acts and things required of it hereinunder, and that the
individual executing this Agreement on their behalf is fully
empowered to bind them and fully authorized to enter into this
Agreement and to perform the required acts,
10. This Agreement is freely and voluntarily executed and
given by Ms. Hayes. Ms. Hayes, in executing this Agreement, does
not rely upon any inducements, promises or representations by the
City which are not fully expressed herein.
wa:395w-2 -3-
06/05/97 TUE 16:59 FAX 213 236 2700 BURKE WILLIAMS L6
11. This Agreement constitutes the entire agreement between
the parties and supersedes all prior or contemporaneous agreements
and understandings between them.
12. This Agreement shall inure to the benefit of and be
binding upon the heirs, administrators, executors, trustees and
assigns of Ms. Hayes, either, any, or all of them.
13. This Agreement shall in all respects be interpreted,
enforced and governed by and under the laws of the State of
California.
14. The Parties agree that this Agreement was jointly
prepared through negotiations of the parties and the provisions of
the Agreement are not to be strictly or liberally construed for or
against any of the Parties.
15. The Parties and their respective counsel agree to execute
all documents necessary to effectuate the terms of this Agreement.
16. This Agreement may be executed in counterparts, which
such counterparts when taken together shall constitute but one
entire Agreement.
17. All Parties shall receive a fully executed copy of the
Agreement.
Dated:
a7�1�r 4/ /9�7
Dated:
CHARLOTTE A. HAYES
By:-
CITY OF EL SEGUNDO
By:
its:
wd:tesw.z ' 4'
•
06/05/97 TUE 16:59 FAX 213 236 27UU BLIk1�E 441LL1
11. This Agreement constitutes the entire agreement between
the parties and supersedes all prior or contemporaneous agreements
and understandings between them.
12. This Agreement shall inure to the benefit of and be
binding upon the heirs, administrators, executors, trustees and
assigns of Ms. Hayes, either, any, or all of them.
13. This Agreement shall in all respects be interpreted,
enforced and governed by and under the laws of the State of
California.
14. The Parties agree that this Agreement was jointly
prepared through negotiations of the parties and the provisions of
the Agreement are not to be strictly or liberally construed for or
against any of the Parties.
15. The Parties and their respective counsel agree to execute
all documents necessary to effectuate the terms of this Agreement.
16, This Agreement may be executed in counterparts, which
such counterparts when taken together shall constitute but one
entire Agreement.
17. All Parties shall receive a fully executed copy of the
Agreement.
Dated:
Dated:
Y
1/1X2:185654.2 Fi /1 PPrs - As
V._�Y
CHARLOTTE A. HAYES
By:
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PRICE
SIGN
SIGN
EL SEGUNDO BOULEVARD
(SECONDARY STREET)
t. t t.. t t. t. t
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3
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PROJECT INFORMATION
I. S I T�
A LOT AREA GROSS
55,448 SOFT.
B. ZONING
M -2
C. ASSESSORS PARCEL NUMBER
-
D. CASE NUMBER
_
E. LANDSCAPING (PLANTING AREA)
11,110 SOFT. (20 %)
F. VEHICULAR USE AREA
36,218 SOFT.
VEHICULAR USE LANDSCAPING (5%)
1,810.90 SO.FT. (REQUIRED)
1,924 SOFT. (SHOWN)
I. STRUCTURES
DESCRIPTION AREA OCCUPANCY CONSTR. TYPE
A_AURgNG
1. CHEVRON FOOD MART 1,613.50 SOFT. M 2-5
2. MCDONALDS WITH DRIVE THRU 2,72950 SOFT. M 7-5
PLANT LEGEND
AD0IT1ON 490 SOST.
3. RESTRDDMS (SHARED) 244 SOFT. M 1-5
TOTAL STORE AREA 5.077,00 SOFT,
SYMBO QUANTIT Y
BOTANICAL NAME
COMMON NAME
SIZE REMARKS
B. CANOPY 68' -0 "x52' -0"
5
JACARANDA
MIMOSIFOL3A
JACARANDA
IS GAL MINIMUM HEIGHT B'
3,536 SOFT. 5 -3 I -N
C. PERCENT OF LOT COVERAGE IIAX
(EXCLUDING CANOPY)
STANDARD
pl, PARKIN G
A BFOINRFD PARKINf.
1. FOOD MART 1,735.50 SO.FT. (1/300 SO.FL) 6 SPACES
6
PYRUS KAWAKAMI
EVERGREEN PEAR
24" BOX MINIMUM HEIGHT II'
Z. RESTAURANT 3,341.50 SOFT. (1/75 SOFT.) 45 SPACES
TOTAL PARKING SPACES REQUIRED 51 SPACES
C
1J
EUCALYPTUS
MACUUTA
SPOTTED CUM
15 GAL MINIMUM HEIGHT 9'
ROOT BARRIER
.
B. PROMD D PAR
HANDICAP SPACES
REQUIRED
IN PUNTERS 5' WIDE OR
(9'118' W 18' LOADING SPACE) 2 SPACES
LESS STANDARD SPACES 43 SPACES
® 8
HIBISCUS
ROSH- SINENSIS
WHITE WINGS
HIBISCUS
24" BOX MINIMUM HEIGHT 10'
TOTAL PARKING SPACES PROVIDED 45 SPACES
'WHITE WINGS'
STANDARD
N. L E G A L D F S C R I P T I D N
6
ECHIUM
FASTUOSUM
PRIDE OF MADEIRA
5 GAL. PUNT 5' -0" O.C,
THAT PORTION OF LOT 3 OF IRACT 1314 IN THE CITY OF EL SEWN , COINIY OF LOS ANGELES
' 4
HIBISCUS
STATE OF CALIFORNIA AS SUIT TRACT IS RECORDED IN BOOK 20, PACE 161 OF MAPS IN THE OFFICE
ROSA- SINENSIS
WHITE FLOWERING
HIBISCUS
5 GAL. INSTALL IN PUNTER POT
O THE COUNTY RECODFA O SAD ODLIM,, BEING DMINE0 AS FODU WQ
'WHITE
WITH RED FLOWERING
BEDDING PUNTS
BEGNMNG AT THE MME49 CWJB O Ski) LOT k THENCE SOUTH OT 01' OF FAST HANG
THE EASTERLY LINE OF STIR LOT, A DLDANCE OF 37101 FEET; THENCE SOUTH BB 59' 30" WEST
8,836 SOFT.
PI AMID. WITH THE NORTHERLY LINE O S40 LO, A DISTANCE O 9A00 FEET: THENCE NORM
SHRUB AND
GROUND COVER
VARIES
W W
01' ' WEST A OSTANCE OF 12500 FEET; THENCE Soo 89 59' 30' WEST A 06TINCE OF 127.00 FED;
AREA
DENCE NORTH 01' 01' OD" WESE PARAUEL WITH SAID EkMY LINE OF SVO LOT, A DISTANCE 250.00 FEET TO
A POW ON THE NORTHERLY LINE O SAO LOT: THENCE NORTH 87 59' 30" EAST ALONG SAM NORTHERLY LNE,
A DISTANCE O 225A0 FEET TO 111E FONT OF BEGINNING
2,274 SOFT.
=�4
FESTUCA OWA(IF
MARATHON 'Ill
DWARF
MARATHON 'Itl'
ROLLS REFER SPECIFICATIONS
FOR INTO
STALLATION
SITE PLAN APPROVED: SIGNATURE 04TE
CHEVRON MARKETING MANAGER
CHEVRON TERMINAL MANAGER
McDONA.D'S REGION
REVISIONS
~° mw RA
MUME SITE PLAN
1 8/4/97 pqF REVISED DUE TO OWNER'S REQUEST
O
McDONALD'S /CHEVRON #LA0039
101 S. SEPULVEDA BLVD. & EL SEGUNDO BLVD.
EL SEGUNDO, CALIFORNIA
N
APPROVAL
lASraN[ �e
RECORD I
Wa6 xPmwa � $t
ISSUE FOR CUP
ISSUE FOR PUN CHECK
ISSUE FOR BID
8/23/98 JM DATE: 6/72/96
DRAWN BY: P.A.F.
ISSUE FOR CONSTRUCTION
SCALE: 1"=20'-D"
RECORD DRAWING
FILENAME: RENDER2
FF3308
EL SEGUNDO CHAMBER OF COMMERCE
1997 -98
"RECOGNIZING CHANGE - SEIZING OPPORTUNITIES"
The El Segundo Chamber of Commerce plays a leadership role in enhancing an environment that fosters the attraction
and growth of desirable businesses. These businesses will contribute to the long term prosperity of the city and
improvement of its quality of life.
.GOALS
1. To be an effective liaison between the business community and the city, regional and state governments to
advocate responsible positions on legislative and administrative matters that impact chamber members and business as
whole.
2. To develop and support well thought out programs to encourage the revitalization of the downtown,
commercial area.
3. To attract and support the development of responsible, involved leaders in the community
4. To identify and encourage programs that will enhance the quality of life in El Segundo and particularly in
education and community activities.
5. To support and reinforce the efforts of the City and Chamber members to attract and retain quality business
enterprises which will foster a healthy long term growth in El Segundo.
6. To be aware of the expectations of Chamber members and ensure that those are met.
7. To increase the membership of the Chamber.
8. To provide a strong and healthy financial base for the Chamber.
9. To develop a solid working relationship with citizen groups and to identify and promote mutual goals.
10. To maintain an effective liaison with the South Bay Area Chambers of Commerce, the California State
Chamber of Commerce and simillar organizations with whiich our Chamber has common interests.
11. To explore and promote opportunities for the development of the "Sepulveda Corridor" in El Segundo and to
encourage a compatibility in business development between both sides of Sepulveda Boulevard.
12. To seek ways to encourage a relationship of commerce between the "Sepulveda Corridor" and "Downtown"
El Segundo.
13. To develop a more efficient, state of the art administration of the internal affairs of the Chamber.
C: \wpwin\cofc\retret97.a
City o "Seq�unJo
Inter - Departmental Correspondence
TO: Honorable Mayor and Members of the City Council
THROUGH: James W. Morrison, City Manager
FROM: Bret B. Bernard, AICP, Director of Planning and Building Safety
DATE: 05 August 1997
SUBJECT: Parking of Vehicles in Front Yard (Lawn Area) of Residential Areas
-- Survey of Surroundina Cities' Standards [Item J /Friedken]
On this evening's (05 August 1997) City Council Agenda, City Councilwoman Friedken
has asked that an item be placed under her name, during the "New Business and
Reports - City Council members" (Item J) portion of the meeting, regarding Parking of
Vehicles in Front Yard (Lawn Area) of Residential Zones in the City. To assist the City
Council in its consideration of this item, Planning Staff has surveyed the nearby cities
of Hawthorne, Hermosa Beach, Los Angeles, Manhattan Beach, Rancho Palos Verdes,
and Torrance to ascertain what standards they might employ with regards to this
subject.
The results of this survey have been assembled into the attached "Residential Front
Yard Parking and Paving" Matrix. We trust that this information will prove of assistance
to the Council during any discussion on this item.
Attachments: "Residential Front Yard Parking and Paving' Matra
xc: Mark D. Hensley, City Attorney
Cindy Morteson, City Clerk
Laurie B. Jester, Senior Planner
PA123WEM0SU388%MEM0.FRM /bbb
f
CITY / COUNTY
City of Manhattan
Beach
OFF - STREET PARKING
RESTRICTIONS
Sec. 10.64.020 (17)(2):
Required yards and open
space shall not be used
for parking except:
a) (All Area Districts): up
to 20 feet of the width of
the access drive to the
garage may be used for
non - required unenclosed
parking.
b) (Area Districts III & IV --
refers to specific areas in
the City): One interior side
yard may be used for
unenclosed parking.
Q
FRONT YARD
SETBACK PAVING
RESTRICTIONS
1) Section 10.12.030
(N): Semi - circular
driveways - -no more
than 50% of the front
setback shall be paved
and, visible landscaping
equal to 10% of the front
setback shall be
installed between the
driveway and the front
property line.
2) Section 10.12.030
(0):
Required landscaping
adjoining streets - -At
least 20% of all visible
portions of a required
front or comer side yard
adjoining a street shall
be a planting area
(except Area District III
and IV: the CD Director
may grant an exception
for a portion of the
amount of required
landscaping, not to
exceed 75 percent of
the total, for driveways
and walkways).
i
RESIDENTIAL FRONT YARD PARKING AND PAVING MATRIX FOR 8/5/97 CC MTG.
CITY / COUNTY
City of El Segundo
OFF - STREET PARKING
RESTRICTIONS
Section 20.54.020 (H): No
required guest parking
space for any residential
use shall be located, in
whole or in part, in any
required front yard or front
two - thirds of any required
side yard.
FRONT YARD
SETBACK PAVING
RESTRICTIONS
1) Section 20.54.020 (M):
For any Zone--All
permanent on -site
parking... shall be paved
with approved concrete or
asphaltic concrete.
2) Sections 20.20.070 and
20.22.070 (R -1 and R -2
Zones): Landscaping and
irrigation shall be provided
within the front and street
side setback areas. Those
setback areas fronting
upon a public street shall
incorporate a combination
of soft (plantings) and hard
(rock, brick, concrete)
landscape materials,
except for those portions
devoted to vehicular
parking.
3) Section 20.24.070 (R -3
Zone): Same as #2 above
and - -50% of required
common open space shall
include soft landscaping.
CITY / COUNTY
OFF - STREET PARKING
RESTRICTIONS
FRONT YARD
SETBACK PAVING
RESTRICTIONS
City of Torrance
1) Sec. 93.2.1 (b)(3):
Section 92.5.14: 50%
Single Family Residence --
maximum paving
for flag lot subdivisions in
allowed in the front yard
the R -1 zone - -in cases
without prior approval
where a lot size prohibits
from Director of Building
parking 2 vehicles in front
and Safety.
of garage doors, there
shall be provided 2 open
parking spaces elsewhere
on the lot; however, in no
case shall this parking be
provided in the required
front yard setback.
2) Sec. 93.2.3 (f):
Multiple Family
Residence-- In no case
shall open area parking
be permitted in any ,
required front yard or side
street yard or yards
between the street line of
the lot and the lines of the
main building which
building lines extend from
one lot line to the other.
06/05/97 TUE 16:56 FA1 213 206 27UU BURKE IiLL1AMb
.i
L X2 :185465.2
SETTLEMENZ AND SPECIAL RELEASE AGREEMENT
1. This Settlement and special Release Agreement
( "Agreement ") is made by Mod Electronics, Inc. dba ESE, a
California corporation (hereinafter referred to as "ESE "), and is
given to, and for the benefit of, the City of E1 Segundo
with.reference to the following facts and circumstances:
a. A dispute has arisen between ESE and the City
reflected in an action filed by ESE and others now pending in
the Superior Court of the State of California, County of Los
Angeles, Southwest District, entitled "Siadek. et al. v. city
of _E1 Segundo," and numbered as YC 025264 (said action is
hereinafter referred to as "Dispute ") respecting alleged
damage due to flooding occurring in January 1995 (the
"Incident ").
b. The Parties hereto, in order to resolve the
differences between ESE and the City, and to avoid the
difficulty, expense and inconvenience of further court
proceedings, desire to settle their controversies reflected in
the Dispute on the terms and conditions set forth herein; and
C. The purpose of this Agreement is to settle the
Dispute.
2. In consideration of the city's payment of the sum of
$10,000.00, receipt of which hereby acknowledged, and the execution
and delivery this Agreement, together with an executed Request for
Dismissal with prejudice, ESE hereby absolutely and forever
releases and discharges the City of and from any and all causes of
action, damages, demands, costs, debts, losses, liabilities,
002
06/05/97 TUE 16:57 FAX 213 236 2700 BURKE WILLIAMS 4 003
i
accounts, reckonings, obligations, expenses, liens, claims, rights
and demands of whatsoever kind or nature (collectively, "Claims"),
whether now known or unknown, which ESE now has, owns or holds, or
at any time heretofore, had, owned or held, arising out of the
Incident, and the preparation, filing, prosecution, and maintenance
of the Dispute, except that such release and discharge is not
intended to release and discharge and shall not release and
discharge any promises, agreements, warranties, obligations or
,indemnities undertaken or agreed to in this Agreement. This
release and discharge extends to all past and present elected and
appointed officials, directors, officers, administrators,
representatives, successors, assigns, employees, agents and
attorneys of the City, and each of them. It is the intention of
the Parties hereto that this special release shall extend to and
cover all claims arising out of the Incident. As such and solely
to that extent, the Parties hereto waive the provisions of Section
1542 of the Civil Code of the State of California, which provides
as follows:
A general release does not extend to claims
which the creditor does not know or suspect to
exist in his favor at the time of executing
the release, which if known by him must have
materially affected his settlement with the
debtor.
3. ESE acknowledges that the facts with respect to which it
gives its special release may turn out to be different from the
facts it now believes to be true. ESE hereby assumes the risk of
the facts turning out to be different, and agrees that this
LAX2:165465.2
06/05/97 TUE 16:57 FAX 213 236 2700 BURKE WILLIAMS Z004
1
Agreement shall be in all respects be effective and not subject to
termination or rescission because of any such difference.
4. ESE understands and agrees that the exchange of this
Agreement, the Request for Dismissal with Prejudice and the City "s
Payment of $10,000.00 are being given as consideration to
compromise disputed claims and that said exchange is not to be
considered an admission of liability on the part of the City. The
City denies that it has any liability to ESE and asserts that the
consideration paid herein is to avoid further expenses of
litigation. ESE hereby represents, warrants and agrees that this
settlement and Agreement shall not constitute nor be offered in
evidence in any forum or any proceeding, in court or otherwise, as
evidence of any liability, upon any theory, on the part of the
City, its officials, officers or agents.
5. ESE hereby covenants and warrants that it has not
assigned nor sold any of the said Claims and hereby agrees to
indemnify and hold the City harmless as against any claim, debt,
liability, demand, obligation, cost, expenses, action or cause of
action based on, or arising out of, or in connection with any
transfer or assignment or purported transfer or assignment of said
Claims.
6. ESE tenders herewith a fully executed Request for
Dismissal with Prejudice of said action, in the form of Exhibit A
hereto, and authorizes its filing with the Clerk of the Court in
which said action is pending.
7. The City and ESE shall bear their own respective costs
and attorneys' fees arising from the Dispute.
IAAX2:1E5465.2
08/05/97 TUE 16:57 FAX 213 236 2700 BURKE WILLIAMS Z005
Y
'r
the Agreement are not to be strictly or liberally construed for or
against any of the Parties.
15. The Parties and their respective counsel agree to execute
all documents necessary to effectuate the terms of this Agreement.
16. This Agreement may be executed in counterparts, which
such counterparts when taken together shall constitute but one
entire Agreement.
17. All Parties shall receive a fully executed copy of the
Agreement.
Dated: -7—TI-57
Dated:
U►X2:185465.2
MOD ELECTRONICS, INC. DBA ESE
CITY OF EL SEGUNDO
By:
Its:
i 06 /05/97 TLE 16:57 FAX 213 236 2700 BLIRKE WILLIAMS � 006
the Agreement are not to be strictly or liberally construed for or
against any of the Parties.
15. The Parties and their respective counsel agree to execute
all documents necessary to effectuate the terms of this Agreement.
16. This Agreement may be executed in counterparts, which
such counterparts when taken together shall constitute but one
entire Agreement.
17. All Parties shall receive a fully executed copy of the
Agreement.
Dated:
Dated:
4 1 147
' I Perow,$v
LAX2:165465.2
MOD ELECTRONICS, INC. DBA ESE
By:
Its:
CITY F SEGUNDO
By:
It Alf
P-4- 7-
08/05/97 TUE 16:58 FAX 213 236 2700 BLIRKE U LLIAMS X00
.4
the Agreement are not to be strictly or liberally construed for or
against any of the Parties.
15. The Parties and their respective counsel agree to execute
all documents necessary to effectuate the terms of this Agreement.
16. This Agreement may be executed in counterparts, which
such counterparts when taken together shall constitute but one
entire Agreement.
17. All Parties shall receive a fully executed copy of the
Agreement.
Dated: MOD ELECTRONICS, INC. DBA ESE
By:
Its:
Dated: X CITY E SEGUNDO
U�
LAX2:1%5465.2
DRAFT
AGREEMENT FOR ELECTRIC UTILITY
RESTRUCTURING SERVICES (the "Agreement")
1. PARTIES.
The parties to this Agreement are:
The City of El Segundo (the "City ") and
ASTRUM ENERGY SERVICES, LLC
a California limited liability Company ( "ASTRUM ").
2. RECITALS.
ASTRUM believes that this AGREEMENT provides for potential benefit to the City based
upon the following facts and circumstances set forth in 2.1 through 2.4 which it believes to be
true and correct:
2.1 AB1890.
On April 20, 1994, the State of California through its California Public Utilities
Commission ( "CPUC") proposed implementation of open access to transmission service for all
retail customers. In the ensuing two years many different proposals were evaluated for
implementing open access, creating an open market for the purchase of power from generators,
establishing fair fees for transmission service and allowing the utilities to recover for appropriate
"stranded" investments. In 1996, Governor Wilson signed AB1890 (California Electric Utility
Restructuring Legislation) which opens the door for competition in the supply of electric power
and allows retail customers to choose their suppliers. The legislation creates a new electricity
market structure, authorizes direct transactions between competing electricity suppliers and
retail customers, provides equal access to transmission and distribution services, and establishes
a charge to recover the utilities' uneconomic generation costs. Many regulatory actions have
been and will be taken by CPUC to implement AB 1890, and future statutory amendments are
likely.
2.2 The Opportunity.
Beginning January 1, 1998, a program now under preparation by the CPUC, will permit
customers, such as the City, to select electricity power suppliers. AB1890 empowers
municipalities and public agencies to: (i) provide energy to residents, businesses, and industry at
lower costs, (ii) to provide creative innovative products and services to give customers cost
effective, efficient energy choices, (iii) select among energy suppliers, (iv) set attractive economic
development rates, (v) arrange cost effective tax - exempt financing, (vi) provide additional
revenues to, or reduce expenditures from, the general fund, (vii) compete with other
municipalities and regions which also have opportunities to reduce power cost, and (viii) realize
other efficiency measures including the opportunity to aggregate.
2.3 Aggregation.
Aggregation of customer electric load will be authorized by the CPUC for all customer
classes. Public agencies such as the City, can combine ( "Aggregate') energy requirements and
provide service to separate classes of customers (i.e., residential customers). Aggregation
permits municipalities to combine energy requirements at all locations or combine these
requirements with other municipalities and /or their constituents. An aggregator can also
function as a financing entity through which energy is purchased from energy suppliers and
resold to the end -user at advantage rates. Investor -owned utilities are required to provide access
to their facilities at comparable prices.
2.4 ASTRUM's Personnel
It has comprehensive knowledge of and hands on experience in Restructuring and
Aggregation. Its personnel are uniquely qualified to identify and structure opportunities to
realize substantial savings in energy supply costs. Thus, ASTRUM can provide the personnel,
expertise and advice necessary to enable the City to procure the energy and related services at
the most favorable prices. ASTRUM's Statement of Qualifications is attached as Exhibit 2.4.2
which includes the hourly rates of ASTRUM's personnel which shall be the basis for the time
costs set forth in section 4.1.
2.5 Basis For Agreement.
2.5.1 The City based upon the above recitals and the other representations made
by ASTRUM has determined, subject to the terms and conditions set out in this Agreement
( "Conditions ") below, to retain ASTRUM with respect to Aggregation and Restructuring to
advise it and provide consulting services and to potentially assume the City's rights and
obligations as an Aggregator.
2.5.2 By using ASTRUM, the City desires to take advantage of this opportunity
without adding any staff or capital equipment facilities, and without adding any fixed overhead.
2.5.3 The parties recognize their mutual goal, to offer reliable electric power to
City's residents, businesses and industries at the lowest possible prices, to create a competitive
alternative to Southern California Edison Company energy and conservation services, and to
give customers a quality of service second to none. In so doing the parties believe that cheaper
electric power will promote economic development of the community, particularly industrial
development enhancing of the City's economy and employment base.
AGREEMENT
3. ENGAGEMENT; SCOPE OF SERVICES.
ASTRUM agrees that it will:
3.1 Project Description Plan:
Develop and submit a specific Project Description Plan (the "Plan"). The Plan will detail
the goals and outline the programs in which the City and/or ASTRUM may participate. The Plan shall be
completed by , 1997.
nn A VT
3.2 Feasibility Stud X.
ASTRUM will complete by 1997, a feasibility study incorporating the
following elements. ASTRUM will:
3.2.1 Document the activities and approaches other municipalities are exploring in
becoming an Aggregator for their community.
3.2.2 Identify the services that an Aggregator can offer to the community.
3.2.3 Analyze Southern California Edison's proposed January 1, 1998 rate structure.
3.2.4 Identify opportunities to lower energy costs.
3.2.5 Forecast energy pricing.
3.2.6 Solicit public input, needs and discussion.
3.2.7 Survey residents, commercial and industrial customers to gauge level of interest.
3.2.8 Forecast energy purchases from an alternative supplier.
3.2.9 Forecast energy savings and revenues to the City.
3.3 Services.
ASTRUM will:
3.3.1 Originate and participate in energy information meetings to define and capitalize on
the City's unique territory, authority and opportunities.
3.3.2 Coordinate the City's power activities with the various State agencies, including the
CPUC, to assure that the entity which becomes the Aggregator (El Segundo Energy Services ( "ESES ")) will
be able to timely select an alternative energy supplier.
3.3.3 Develop a marketing strategy specific to City's customer profile aggregating retail
load. ASTRUM shall be entitled to keep confidential, to the extent permitted by law, the specific names and
energy needs of individual businesses and residences. However, ASTRUM shall provide the City with a
general summary of this type of information.
3.3.4 Develop a plan to provide customer choice and service delivery options at
competitive prices.
3.3.5 Develop a plan to provide access to retail customers at the lowest prices available
on the open market.
3.3.6 Trademark ESES for the City.
3.3.7 Develop a plan to provide customers with a wide range of energy management
services that will enable them to operate more efficiently and control costs.
i7R A FT
4. COMPENSATION AND PAYMENT / POTENTIAL PHASE II RELATIONSHIP
By this Agreement the City authorizes ASTRUM to perform certain designated services and
acknowledges that it contemplates, but does not bind itself to, an ongoing relationship. the Parties have the
opportunity, but not the obligation, to enter into a separate, Phase II, agreement as outlined in paragraph 4.2
herein.
4.1 Compensation and Payment for ASTRUM's Services Under this Agreement Phase II. If the
Parties do not enter into a Phase II agreement as contemplated by paragraph 4.2 below, then ASTRUM will
be paid on a time and material basis in an amount not to exceed $50,000. For each $10,000 increment of the
$50,000 limit on compensation, ASTRUM shall provide the City Manager with a written summary of
services that will be performed which must be approved by the City Manager prior to ASTRUM proceeding
with any work. The City shall not pay for any fees or costs associated with travel, communications solely
between ASTRUM's personnel, or ASTRUM's administrative overhead. ASTRUM will submit a dated,
itemized billing statement monthly in arrears. The billing statement and one copy should be addressed as
follows:
City of El Segundo
350 Main Street
El Segundo, CA 90245
Attention: James W. Morrison
ASTRUM will maintain in a form subject to audit, and in accordance with general accepted
accounting principles, backup documentation to support all entries included in the statement. Such
documentation shall be available to the City upon request. If the Parties do not enter into a Phase II
agreement, payment of the statements submitted will be made upon the closing or termination of this
Agreement. The City agrees to use its best efforts to process the payment promptly.
4.2 Potential Phase Il. ASTRUM's motive and intention in entering into this Agreement is to
produce for the City a program which will demonstrate, on its own merits, that Aggregation is beneficial for
the City, its businesses, economic base and residents.
4.2.1 If the Parties do not enter into a Phase II agreement, then the City shall not have
any obligation to pay ASTRUM for the services it rendered under this Agreement (Phase I). For such
agreement to be valid and binding it must be in writing and approved by the City Council and ASTRUM.
5. City's REPRESENTATIONS, WARRANTIES and CONDITIONS.
The City represents and warrants that:
5.1 It is a legal subdivision and body corporate and politic of the State of California established
and existing under the Constitution and laws of the State and has full legal right, power and authority to
adopt appropriate Resolutions, and enter into this Agreement and to and to cant' out the transactions
contemplated by this Agreement.
5.2 The City, immediately and continually throughout the Term of this Agreement, shall
publicly announce the identity and organization of the ESES. The City shall assist ASTRUM's efforts and
those City departments and agencies to develop a consistent and effective interface for promotion,
communication and interaction with the City's potential and existing electric customers.
T1R A FT
5.3 Conditions.
5.3.1 While the City will make pertinent City personnel available to work with ASTRUM,
the City will not be obligated to provide any staff to or general and administrative support for ASTRUM or
the Aggregation or Restructuring program.
5.3.2 No document or obligation shall be binding on the City except those to which its has
given its duly authorized prior written consent.
6. DISPUTE RESOLUTION
6.1 Time of Essence. The Parties agree that time is of the essence in the performance of this
Agreement.
6.2 Defaults and Right to Cure. Failure or delay by either party to timely perform any covenant
of this Agreement constitutes a default under this Agreement, but only if the party who so fails or delays does
not commence to cure, correct, or remedy such failure to delay within thirty (30) days after receipt of a
written notice specifying such failure to delay, and does not thereafter prosecute such cure, correction or
remedy with diligence to completion. The injured party shall give written notice of default to the party in
default, specifying the default complained of by the injured party. Except as required to protect against
further damages, the injured party may not institute proceedings against he party in default until thirty (30)
days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any
default, nor shall it change the time of default.
6.3 Dispute Resolution. All claims and disputes between City and ASTRUM arising out of or
related to this Agreement will first be attempted to be resolved by the responsible management personnel for
both parties. Resolution failing to materialize senior management for both the City and ASTRUM will
negotiate in good faith to reach an acceptable and timely resolution of the claim or dispute. Should the
parties be unable to resolve the dispute to their mutual satisfaction within two (2) weeks after such
negotiation by senior management, or any other mutual agreeable time period, the parties will attempt to
resolve the dispute through non - binding mediation (using a mediator upon which the parties shall mutually
agree within thirty (30) days), as a condition precedent to pursuing litigation. Neither party shall be
obligated to engage in mediation for longer than three (3) days. Each party shall be responsible for its own
expenses and one -half of any mediation expenses incurred to resolve the dispute. If the parties are still
unable to resolve their differences after good faith consideration of a resolution through mediation each party
shall have the right to pursue binding arbitration. Neither party shall commence any action at law or in
equity as a result of any dispute, controversy or claim arising out of or in connection with or relating to this
Agreement or any alleged breach hereof until the above procedures with respect to settlement and mediation
have been complied with. The Parties agree that if there is any dispute concerning this Agreement which
results in litigation the losing party (as that term is defined in the decision) is required to pay, as an element
of damages, costs and attorneys' fees.
6.4 Compliance. The parties expressly agree that each party is in full and complete compliance
with all prior oral or written understandings or agreements and neither party has any claims one against the
other at this time.
MISCELLANEOUS AND PROCEDURAL
FIR A FT
Notice under this Agreement shall be effective if mailed to:
ASTRUM
Len Viejo
462 Stevens Avenue, Suite 308,
Solana Beach, CA 92075
and to
The City of El Segundo
James W. Morrison
350 Main Street
El Segundo, CA 90245
Notice is effective on personal delivery, receipt, verified fax transmission or 72 hours after posting in the
United States Mail, certified, return receipt requested. This Agreement is the sole and entire understanding
between the Parties. In addition, the Parties acknowledge and agree that neither of them has made any
representations with respect to the subject of this Agreement or of inducing its execution and delivery, except
as are specifically set out in this Agreement. This Agreement can be amended only by a writing signed by
both Parties. This Agreement has been negotiated, signed, and will be substantially performed in California,
and will be subject to and construed in accordance with the laws of California, and the Parties hereby
irrevocably consent and agree to personal jurisdiction of the courts of that County. Any provision in this
Agreement which might ever be held to be invalid or void is deemed severed from the Agreement so that the
rest of the provisions remain in effect. Any waiver or breach of any of the terms of this Agreement shall not
operate as a subsequent waiver of any similar breach, or as a waiver of any other term or condition of this
Agreement. Each Party agrees that clerical errors will not affect substance, and that all pronouns are to be
used as context requires in this Agreement.
8. EFFECTIVE DATE AND TERM
8.1 This Agreement shall be deemed effective, executed and delivered for all purposes on
, 1997, which is its Effective Date.
8.2 This Agreement shall continue until , 19 This Agreement may be
terminated, however, prior to expiration of the Term for any of the following reasons:
8.2.1 At the option of the non - defaulting party, in the event of a default in the
performance of terms hereof, provided that the right to cure and dispute resolution
provisions of paragraphs 6.2 and 6.3 are complied with;
8.2.2 Upon thirty (30) days written notice by City.
9. STATUS OF ASTRUM
ASTRUM is and shall at all times remain as to the City a wholly independent contractor. The
personnel performing the services under this Agreement on behalf of ASTRUM shall at all times be under
1 C � III
ASTRUM's exclusive direction and control. Neither Citv nor any of its officers, employees or agents shall
have control over the conduct of ASTRUM or any of ASTRUM's officers, employees or agents, except as
set forth in this Agreement. ASTRUM shall not at any time or in any manner represent that it or any of its
officers, employees or agents are in any manner officers, employees or agents of the City. ASTRUM shall
not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in
any manner. ASTRUM shall not disseminate any information or reports gathered or created pursuant to this
Agreement without the prior written approval of City except information or reports required by government
agencies to enable ASTRUM to perform its duties under this Agreement.
10. INDEMNIFICATION
10.1 ASTRUM represents it is skilled in the professional calling necessary to perform the
services and duties agreed to hereunder by ASTRUM, and City relies upon the skills and knowledge of
ASTRUM. ASTRUM shall perform such services and duties consistent with the standards generally
recognized as being employed by professionals performing similar service in the State of California.
10.2 ASTRUM is an independent contractor and shall have no authority to bind City nor to
create or incur any obligation on behalf of or liability against City by contract, unless such authority is
expressly conferred under this agreement or is otherwise expressly conferred by the City Council. City, its
elected and appointed officials, officers, agents, employees and volunteers (individually and collectively,
"Indemnitees ") shall have no liability to ASTRUM or to any other person for, and ASTRUM shall
indemnify, defend, protect and hold harmless the Indemnitees from and against, any and all liabilities, claims,
actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of
whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims "), which the
Indemnitees may suffer or incur or to which the Indemnitees may become subject by reason of or arising out
of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or
otherwise occurring as a result of or allegedly caused by the performance or failure to perform by ASTRUM
of ASTRUM's services under this agreement or the negligent or willful acts or omissions of ASTRUM, its
agents, officers, directors or employees, in performing any of the services under this agreement.
If any action or proceeding is brought against the Indemnitees by reason of any of the
matters against which ASTRUM has agreed to indemnify the Indemnitees as above provided, ASTRUM,
upon notice from the CITY, shall defend the Indemnitees at ASTRUM's expense by counsel acceptable to the
City. The Indemnitees need not have first paid any of the matters as to which the Indemnitees are entitled in
order to be so indemnified. The insurance required to be maintained by ASTRUM under paragraph 15 shall
ensure ASTRUM's obligations under this paragraph 14(b), but the limits of such insurance shall not limit the
liability of ASTRUM hereunder. The provisions of this paragraph 14(b) shall survive the expiration or
earlier termination of this agreement.
The ASTRUM's indemnification does not extend to Claims occurring as a result of the
City's negligent or willful acts or omissions.
11. INSURANCE
11.1 Insurance Requirements. ASTRUM shall provide and maintain insurance acceptable to the
City Attorney in full force and effect throughout the term of this Agreement, against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the work
hereunder by ASTRUM, its agents, representatives or employees. Insurance is to be placed with insurers
with a current A.M. Best's rating of no less than A:VII. ASTRUM shall provide the following scope and
limits of insurance:
TIRAPT
11.2 Minimum Scope of Insurance. Coverage shall be at least as broad as:
11.2.1 Insurance Services Office form Commercial General Liability coverage
(Occurrence Form CG 0001).
11.2.2 Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile
Liability, including code 1 "any auto" and endorsement CA 0025, or equivalent forms or coverage subject to
the prior written approval of the City Attorney.
11.2.3 Workers' Compensation insurance as required by the Labor Code of State of
California and Employer's Liability insurance and covering all persons providing services on behalf of the
ASTRUM and all risks to such persons under this Agreement.
11.2.4 Errors and omissions liability insurance appropriate to the various professionals
which comprise ASTRUM subject to the prior written approval of the City Attorney.
11.3 Minimum Limits of Insurance. ASTRUM shall maintain limits of insurance no less than:
11.3.1 General Liability: $1,000,000 per occurrence for bodily injury, personal injury and
property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is
used, either the general aggregate limit shall apply separately to the activities related to this Agreement or the
general aggregate limit shall be twice the required occurrence limit.
11.3.2 Automobile Liability: $1,000,000 per accident for bodily injury and property
damage.
11.3.3 Workers' Compensation and Employer's Liability: Workers' Compensation as
required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per
accident.
11.3.4 Errors and Omissions Liability subject to the prior written approval of the City
Attorney.
11.4 Other Provisions. Insurance policies required by this Agreement shall contain the following
provisions:
11.4.1 All Policies. Each insurance policy required by this paragraph 15 shall be endorsed
and state the coverage shall not be suspended, voided, canceled by the insurer or either party to this
Agreement, reduced in coverage or in limits except after 30 days' prior written notice by Certified mail,
return receipt requested, has been given to the City.
11.4.2 General Liability and Automobile Liability Coverages.
Q t7i�
11.4.2.1 City, its officers, officials, and employees and volunteers are to be covered
as additional insureds as respects: liability arising out of activities ASTRUM performs, products and
completed operations of ASTRUM; premises owned, occupied or used by ASTRUM, or automobiles owned,
leased or hired or borrowed by ASTRUM. The coverage shall contain no special limitations on the scope of
protection afforded to City, its officers, officials, or employees.
11.4.2.2 ASTRUM's insurance coverage shall be primary insurance as respect to
City, its officers, officials, employees and volunteers. Any insurance or self insurance maintained by City,
its officers, officials, employees or volunteers shall apply in excess of, and not contribute with, ASTRUM's
insurance.
11.4.2.3 ASTRUM's insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
11.4.2.4 Any failure to comply with the reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the City, its officers, officials,
employees or volunteers.
11.4.3 Workers' Compensation and Employer's Liability Coverage. Unless the City
Manager otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against City,
its officers, officials, employees and agents for losses arising from work performed by ASTRUM for City.
11.5 Other Requirements. ASTRUM agrees to deposit with City, at or before the effective date
of this contract, certificates of insurance necessary to satisfy City that the insurance provisions of this
contract have been complied with. The City Attorney may require that ASTRUM furnish City with copies of
original endorsements effecting coverage required by this Section. The certificates and endorsements are to
be signed by a person authorized by that insurer to bind coverage on its behalf. City reserves the right to
inspect complete, certified copies of all required insurance policies, at any time.
11.5.1 ASTRUM shall furnish certificates and endorsements from each subcontractor
identical to those ASTRUM provides.
11.5.2 Anv deductibles or self - insured retentions must be declared to and approved by
City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self - insured
retentions as respects the City, its officers, officials, employees and volunteers; or the ASTRUM shall
procure a bond guaranteeing payment of losses and related investigations, claim administration, defense
expenses and claims.
11.5.3 The procuring of such required policy or policies of insurance shall not be construed
to limit ASTRUM's liability hereunder nor to fulfill the indemnification provisions and requirements of this
Agreement.
DRAFT
IN WITNESS WHEREOF, the parties hereto have executed this Municipal Utility Services
Agreement the day and year written above.
"Ci{ 11
The City of El Segundo,
a municipal corporation
By: James W. Morrison, City Manager
ATTEST:
By: Cindy Mortesen, City Clerk
REVIEWED AND APPROVED AS TO FORM:
By: Mark D. Hensley, City Attorney
ASTRUM ENERGY SERVICES, LLC
By: Leonard Viejo, Project Manager
Exhibits: 2.4.2 ASTRUM's Statement of Qualifications
3.1.3 Specific Plan (to be added by Supplement)
4.2 Hypothetical Formula
-10-
DRAFT
FILE No. 624 07/24 '97 19:45 ID:K 0 N & D 619 793 8340 PAGE 11
AGREEMENT FOR ELECTRIC UTIUIIY RESTRUCTURING SERVICES
Exhlbit 2.4.2
Statement of Qualifications
ASTRUM ENERGY SERVICES, LLC ( ASTRUMM) has developed strategies, tactics and programs to assist it's clients
navigate the unehartered, but not unfamiliar, waters of the new electric market, maximizing potential savings while
minimizing risk. ASTRUM has assembled a team uniquely qualified to undertake a similar program for the Cityof El
Segundo and its constituents. Each of the: principals has been in the California energy industry for at least fifteen years.
All have also worked extensively with local governments, and have established successful track records in assisting
clients meet their objectives. Members of the team have structured and negotiated transactions betwrs; -n the public and
private sectors and will effectively meet the specific needs of the City. The team includes:
KINSELl,, 07NEA'L, NEWCOMB & DS Dios, INC. ( Kinsell), provides comprehensive investment banking services
to municipalities and other public agencies, Its principals, with combined 60 years of hands on experience in
planning complex transactions, have completed over 53 billion in financings, Kinsell has assisted clients to: finance
energy supplies; restructure existing loan commitments; develop competitive utility rates; analyze utility
acquisitions; and model financial projections.
GRUENEICH RESOURCE ADVOCATES (GRA), is led by Dian Grueneich, a recognized leader in Federal and
California electric industry restructuring. Dian has twenty years experience in California energy matters. She is
currently working with public entities to evaluate aggrugat'ion options and design and undertake energy services
bidding processes.
HMH REsoURCEs, INC. (HMH), specializes in planning, development, assessment and creative financing of
energy projects. For 16 years the firm has: (i) analyzed load requirements; (ii) prepared extensive bid documents;
(iii) developed comprehensive financial models to accurately evaluate and compare responses to electric aggregation
proposals, and (iv) successfully negotiated contracts.
I+ZJLBRTGHT & JAWORSK:I, L.L.P. (T'&J), is one of the largest international law firms, and is organized around
core practices including: business and finance, energy regulation, litigation, public finance and administration, and
lax law. Ihis stnlctarre enables it to provide current and comprehensive advice on: (i) the purchase, sale and
financing of energy assets; (ii) stnnaturing and negotiating energy - related transactions; (iii) joint power authority
agreements; and (iv) energy regulation and legislation.
PCF ASSOCIATES, INC. (PCF), has over 15 years experience working with executives who face new levels of
uncertainty and are straggling to chart and execute an effective course of action. The firm assists clients to: (i)
understand complex business strategy issues; (ii) focus and manage large -scale data collection efforts; (iii) build and
support cross- fivaetional teams; (iv) communicate complex issues In simple ternis; and (v) manage changes in how
things get done.
1lie team principals, listed by organization, include:
KINSELL O'NEAL .N:EWCOMB & DE DTOS, NC,
J. JEF.F.E.RY KlNsELL, PRESIDENT
Jeff leas worked in the investment banking industry for 22 years. Experience gained from structuring several billion
dollars in complex financings led him to concentrate on emerging electric utility industry ne;;teds. Over the past 3 years,
Jeff has studied the evolving legal and regulatory framework, analyzed electric utility restructuring opportunities, and
& --velopud strategies for nnuucipalities to successfully compete; in die new marketplace:. Jeff began his banking career as
FILE No. 624 07/24 '97 19:45 ID:K 0 N & D 619 793 8340 PAGE 12
an analyst with A 4BAC, then moved on to become a senior vice president for a regional investment banking firm, and
formed Kinsell in 1985. Jeff holds a B.S. and MBA from the University of Illinois.
LEONARD Vluio
Len has worked in the utility industry for 20 years. He leads the Firm's utility services practice:. More joining Kinsell
in 1995 he was a financial executive reporting to the Chairrnan/CEO rind served on the executive council of a s5 billion
investor -owned utility. During his tenure in the industry, Len has structured innovative and cost effective financing
transactions; managed compli:x state and federal regulatory proceedings; and negotiated and suecessflrlly concluded
strategic business alliances. Prior to joining the utility profession, Len earned his CPA and worked as a consultant and
manager with Ernst &. Young, He graduated with honors from the University of Pennsylvania, Wharton School of
Finance and Commerce and Northwestern University, Kellogg Graduate School of Management
GRUENEICH RESOURCE ADVOCATES
DUN M. GRUENEICH
Dian has provided legal, technical and public policy consulting on energy and policy matters throughout her 20 years of
practice. She has extensive experience in energy regulatory agency filings, electric industry restructuring and structuring
and negotiating power supply agreements, Dian has assisted governmental entities &evelop their strategic plans on retail
direct access aggregation programs. Dian received her B.A. from Stanford University, and her J.D, from Georgetown
University Law Center.
J.EANNE M. SOLE
Jean ,ae has participated in negotiations and regulatory proceedings on the restructuring of the electric utility industry in
California and New England. She has also advised clients on regulatory issue and business strategy related to the
restructuring of the electric industry. Jeanne graduated with honors from Brandeis University, B.A. and Northeastern
University School of Law, I. D.
HMH RESOURCES, INC,
WALLACE G. MCOUAT, PRESLDENT
Wallace specializes in preparing strategic plans optimizing benefits for clients in the restructured energy markets. In his
16 years as an energy consultant, Wallace has also played a significant role in the development, evaluation and
negotiation of one billion dollars worth of energy related projects. Wallace earned his CPA and worked as a manager
with Price Waterhouse, He graduates) with honors from .Indiana University where he received his D.A. and MBA.
FUL.BRIGHT & JAWORSKI, L.L.P.
DON HUNT, PARTNER
Don is the Head of the public finance department in Fulbright & Jaworski's Los Angeles office. He has over 23 years of
experience in a broad range of financial trvasactions. He has acted as bond counsel, disclosure counsel, underwriter's
counsel, or letter-of-credit and bank counsel for municipalities, municipal utilities and corporate finau►cings throughout
the U.S. Don graduated with honors .from the University of Kansas, B.A. and the University of Chicago law school.
FRED G. VANny
Fred has 20 years of experience in the electric power industry. He has served as counsel for the Los Angeles
Department of Power and Water, Western Area Power Administration and Nebraska Public Power District. He has
participated extensively in the current electric utility regulatory proceedings bdore the Califomia Public Utility
Commission and the Federal Energy Regulatory Commission. Frei received his B.S. and Iaw degree from the
University of Nebraska.
e
FILE No. 624 07/24 '97 19:46 ID :K 0 N & D 619 793 8340 PAGE 13.
PCr ASSt7C1ATES, INYC.
E. PATRICKMARFISI, .PRESIDENT
Pat has over a decade of experience consulting with senior management of electric utilities on critical business
issues, including developing strategic plans and repositioning utilities to compete in the changing marketplace. He
served on the Chairman of AT &T's staff and prepared the Corporation for competition. Pat was also a Senior
Manager with McKinsey & Co., assisting clients with acquisitions, diversification's and building strategic
alliances. Pat has developed a sueeesshrl consulting firm around decision- making processes that build individual
and organizational commitment to take action, Pat received a B.A. in Business Administration and M,A. in
Mathematics from the University of Missouri and Ph.A. in Economics from Brown University.
The team's relevant project experience includes:
D County of Los Angeles - strategic energy plan, direct access aggregation program
> University of Callfomla - electric procurement direct access aggregation program
y California State University - strategic energy plan, electric procurement direct access aggregation plan
s City and County of San Francisco - electric restructuring planning
> Sonoma County Water Agency - evaluation of power supply options
City of San Marcos - electric restructuring planning
Southwestern Electric Cooperative, Inc, - restructure and finance existing power supply contract
Southern California Public Power Authority - formation of joint powers authority
s Northern California Power Agency - legal services
Sacramento Municipal Utility District - legal services
Transmission Agency of Northern California - legal services
y Financing Authority for Resource Efficiency of California - legal services
Cities of Anaheim, Colton, Glendale, Pasadena, Riverside, Vernon Electric Utility - legal services
v California Municipal Utilities Association - electric restructuring & legal services
FILE No. 624 07/24 '97 19:46 ID:K 0 N & D 619 793 8340
r
i
The protect organization chart and specific rssponsibilltles, listed by aManizatlon, Is:
LEN vtuo
Project Management
S RA KINSEI._I.
DIAN GRUENFICH LEN VIEJO
JEANNE SOLE I I I JEFF KINSELL
),Regulatory Y Contract negotiation
3i, Power pool options ), Financing
►Procurement L Contract compliance
WALLACE MCOUAT
Pcf
PAT MARFISI
DON HUNT
FRED YANNEY
y Power pool
Y Contract solicitation
y Draft agreements
y Load & power pool Y communication
Power bid evaluation y Member participation
Y Contract negotiation
PAGE 14
City of El Segundo
ASTRUM Team Principals Hourly Rate (1)
Team Principals Hourly Rate
Kinsell, O'Neal, Newcomb & De Dios, Inc.
J. Jeffrey Kinsell $175
Leonard Viejo $140
Donald J. Regan $150
Grueneich Resources Advocates
Dian M. Grueneich $180
Jeanne M. Sole $140
HMH Resources, Inc.
Wallace G. McQuat $130
Fulbright & Jaworski, L.L.P.
Blended Rate $225
PCF Associates, Inc.
E. Patrick Marlisi $200
(1) These rates are significantly less than market value for the individuals listed and reflect
contract negotiations and the intent of the parties for ASTRUM to establish an
aggregation program that is beneficial for the City, its residents, businesses and industry.
July 24, 1997
Chairperson, Planning Commission
City of El Segundo
350 Main Street
El Segundo, CA 90245
Re: Precise Plan Amendment; Chevron Products Co. Drive- Through Restaurant
Dear Honorable Chairperson:
The El Segundo Chamber has reviewed the application of Chevron Products Co. for a drive- through
restaurant operated by McDonald's in conjunction with the Chevron service station at the southwest comer
of Sepulveda and El Segundo Boulevards. We support this application.
The availability of a fast food restaurant on Sepulveda Boulevard is needed to respond to a demand for this
type of facility which does not currently exist in El Segundo along this traffic corridor. Drive- through
restaurants where meals can be obtained quickly and inexpensively are very much in demand in this day and
time. The absence of such a facility encourages the public, including our own citizens, to leave El Segundo
and go to neighboring cities where they can take care of their fast food needs mother shopping needs.
This particular location is ideally situated where it will not interfere with nearby residences.
Location of McDonald's within El Segundo also will have the added benefit of generating sales tax revenues
of $75,000.00 annually which will benefit the City economically.
We urge you grant this application for Precise Plan Amendment.
Respectfully,
aP
'Immediate Past President
copies: Members of Planning Commission
Honorable Sandra Jacobs, Mayor
Members of City Council
City Clerk
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EL SEGUNDO CHAMBER OF COMMERCE • 427 MAIN STREET • EL SEGUNDO, CALIFORNIA 90245 • (213) 322 -1220 • FAX (213) 322 -6880
August, 1997, El Segundo City Council Meeting
Liz Garnholz asked Councilman Mike Gordon the following question.
Garnholz Councilman Gordon "There are some rumors floating around about you and as
my elected representative I would like a yes or not answer concerning the
following rumor. Have you had any meetings with Federal Express concerning
the proposed Federal Express project:
without city staff,
without city legal council,
without one other council person being present."
Gordon "No"
Garnholz "Thank you"
This is a typed version of my hand scribbled question.
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