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2001 SEP 04 CC PACKETG �Y 0 CSEG�3�Q AGENDA 1 EL SEGUNDO CITY COUNCIL COUNCIL CHAMBERS - 350 Main Street The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items Unless otherwise noted in the Agenda, the Public can only comment on City- related business that is within the jurisdiction of the City Council and/or items listed on the Agenda during the Public Communications portion of the Meeting Additionally, the Public can comment on any Public Hearng item on the Agenda during the Public Hearing portion of such item The time limit for comments is five (5) minutes per person Before speaking to the City Council, please come to the podium and state Your name and residence and the organization you represent, if desired Please respect the time limits Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2 00 p in the prior Tuesday) The request must include a brief general description of the business to be transacted or discussed at the meeting Playmg of video tapes or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five (5) minutes in length In compliance with the America us with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524 -2305 Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, SEPTEMBER 4, 2001 - 5:00 P.M. Next Resolution # 4222 Next Ordinance # 1339 5:00 PM Session CALL TO ORDER ROLL CALL CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code §54950, et seg ) for the purposes of conferring with the City's Real Property Negotiator, and /or conferring with the City Attorney on potential and/or existing litigation, and /or discussing matters covered under Gov't Code §54957 (Personnel), and/or conferring with the City's Labor Negotiators as follows �' i CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Gov't Code §54956 9(a)) I Phillips Petroleum, et al, v County of Los Angeles, et al., USDC No 1938 -MRP (MANx) 2 Shell Chemical Company, et al v County of Los Angeles, et al, USDC No 1917 -GHK (RCx) 3 Jeffrey Capistran v El Segundo, LASC Case No YC 038535 4 El Segundo v Trio Manufacturing, LASC Case No YC038567 5 El Segundo v James Van Loben Sels, et al, LASC Case No BS051651 6 El Segundo v South Bay Regional Public Communication Authority, LASC Case No YC040688 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Gov't Code §54956.9(b): -2- potential case (no further public statement is required at this tine), Initiation of litigation pursuant to Gov't Code §54956 9(c) -6- matters DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957) — None CONFERENCE WITH CITY'S LABOR NEGOTIATOR - (Gov't Code §54957 6) — None CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956 8) — Real property negotiations with Mary Strenn, Real Property Negotiator, regarding the lease or purchase of Lots 10,11,12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 and 24, of Tract No 47247, City of El Segundo, County of Los Angeles, State of California as per map recorded in Book 1143, pages 20, 22 and 23, of maps in the office of said County (also known as the Ralph's property) (12 AGENDA EL SEGUNDO CITY COUNCIL COUNCIL CHAMBERS - 350 Main Street The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items Unless otherwise noted in the Agenda, the Public can only comment on City- related business that is within the jurisdiction of the City Council and/or items listed on the Agenda during the Public Communications portion of the Meeting Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item The time limit for comments is five (5) minutes per person Before speaking to the City Council, please come to the podium and state Your name and residence and the organization you represent, if desired Please respect the time limits Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2 00 p in the prior Tuesday) The request must include a brief general description of the business to be transacted or discussed at the meeting Playing of video tapes or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five (5) minutes in length In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524 -2305 Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, SEPTEMBER 4, 2001 - 7:00 P.M. Next Resolution # 4222 Next Ordinance #_1339 7:00 PM Session CALL TO ORDER INVOCATION — Father Jim Anguiano, Saint Anthony Roman Catholic Church PLEDGE OF ALLEGIANCE — Mayor Pro Tem Sandra Jacobs PRESENTATIONS - (a) Proclamation proclaiming September 4, 2001 as the 25' Anniversary of AYSO in El Segundo, and, Commendation to AYSO Area 1 -D and Area Director Danny Juarez for their service to the community and for the fine publicity they have brought to our city (b) Proclamation declaring Saturday, September 15, 2001 as the 2001 American Heart Walk - LA South Bay /Gateway to encourage support for the life- saving work of the Amencan Heart Association (c) Commendation to Chevron for hosting the 10th Annual School Pride Day in El Segundo and all participants who volunteered their time and effort to spruce up our schools ROLL CALL PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total) Individuals who have received value of 950 or more to communicate to the City Council on behalf ofanother, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250 While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on this Agenda by title only Recommendation - Approval. B. SPECIAL ORDERS OF BUSINESS - Presentation of the fiscal year 2001 -2002 Capital Improvement Program recommendations by Mr Mike Rotolo, Chairman of the Capital Improvement Program Advisory Committee Recommendation — Receive the CIPAC recommendations for consideration for the fiscal year 2001 -2002 budget. 2 Public Hearing to discuss FY 2001 -2002 Preliminary Budget and Five -Year Capital Improvement Plan Recommendation — (a) Conduct Public Hearing; (b) Close or Continue the Public Hearing to September 18, 2001; and (c) Schedule budget for adoption at the September 18, 2001 meeting. C. UNFINISHED BUSINESS — Presentation of redesigned city web site Recommendation — Receive and file the presentation by City Web Committee. D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS — 4 Risk Management Organizational Study and implementation Recommendation — (a) Receive and file Risk Management Organizational Study. (b) Approve option of Combination of In- House /Contracted Risk Management (Fiscal impact $15,000 additional ongoing personnel costs; $65,000 one -time professional services). 04 (c) Authorize settlement authority to the Risk Manager for claims to $10,000 and to the City Manager between $10,000 and $25,000. Claims above $25,000 would need City Council approval. (d) Establish a pilot program of using outside counsel for defense of simple tort claims. Guidelines and methods for measurement will be brought back for Council review, Award of contract to Belaire -West Landscape, Inc, for Washington Park Improvements — Prolect No PW 01 -02 — Approved Capital Improvement Project (contract amount option 1 = $135,000 or option 2 = $270,000) Recommendation — Award contract for option 2 and authorize the City Manager to execute the contract on behalf of the City. E. CONSENT AGENDA All items listed are to be adopted by one motion without discussion and passed unanimously If a call for discussion of an item is made, the item(s) will be considered individually under the next heading of business Warrant Numbers 2519560- 2519844 on Register No 22 in total amount of $725,681 00, and Wire Transfers in the amount of $270,645 27 Recommendation - Approve Warrant Demand Register and Authorize staff to release. Ratify: Payroll and Employee Benefit checks; checks released early due to contracts or agreements; emergency disbursements and /or adjustments; and wire transfers from 08/11/01 to 08/24/01. City Council meeting minutes of August 21, 2001 Recommendation - Approval. 8. Approval of Agreement with the Regents of the University of California to provide continuing education for Emergency Medical Technicians (EMTs) and defibrillation training Fiscal Impact $26,000 Recommendation — Approve Services Agreement and authorize the City Manager to execute. Adopt plans and specifications for the rehabilitation of Sanitary Sewer Pump Station No 6 — Project No PW 01 -12 —Approved Capital Improvement Project (estimated cost= $397,635 00) Recommendation — Adopt plans and specifications and authorize staff to advertise the project for receipt of construction bids, 10 Approve formal City Council opposition to S 633 and H R 2107 Recommendation — Authorize staff to prepare necessary correspondence for the Mayor's signature stating the City Council's opposition to S. 633 and H.R. 2107. 05 11 Request for proposals to retain professional services for various public works projects (Fiscal Impact— none at this time) Recommendation — Authorize staff, conditional upon approval by Council, to solicit proposals from firms which specialize in various disciplines related to public works projects. 12 Request for approval to accept a Bureau of Justice Assistance Local Law Enforcement Block Grant awarding $16,941 in grant funding with a $1,882 cash match from Asset Forfeiture Recommendation — Approve request. CALL ITEMS FROM CONSENT AGENDA F. NEW BUSINESS — 13 Staff to seek City Council direction regarding the acquisition of land for recreational purposes from Thomas Properties Recommendation — Direct staff to negotiate for the acquisition of land in an area bounded by Mariposa Avenue, Douglas Street, Atwood Way and Nash Street for recreational purposes. G. REPORTS - CITY MANAGER - NONE H. REPORTS — CITY ATTORNEY - NONE L REPORTS - CITY CLERK - NONE J. REPORTS - CITY TREASURER - NONE K. REPORTS - CITY COUNCIL MEMBERS Council Member McDowell - NONE Council Member Gaines — 14 A request has been received for Council to send a letter to Senator Debra Bowen on behalf of the Southern California Cities Joint Powers Consortium relating to an amendment to SB 27XX to provide an opportunity for community aggregators to receive direct access priority and the option to undertake direct access with reduced or eliminated exit fees The amendment would assist the Consortium in implementing a community aggregation program providing better electricity service and rates to constituents Recommendation — Discussion and possible action. Council Member Wernick - NONE Mayor Pro Tern Jacobs - NONE 06 Mayor Gordon — NONE PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250 While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed MEMORIALS CLOSED SESSION The City Council may move into a closed session pursuant to appheable law, including the Brown Act (Government Code Sec 54960, et seg ) for the purposes of confemng with the City's Real Property Negotiator, and/or confemng with the City Attorney on potential and/or existing litigation, and/or discussing matters covered under Government Code section 54957 (Personnel), and /or conferring with the City's Labor Negotiators, as follows Continuation of matters listed on the City Council Agenda for 5,00 p m , September 4, 2001 under "Closed Session" (if needed) REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) ADJOURNMENT POSTED ) DATE TIME- / �S NAME 090401ag 07 POTENTIAL CONFLICTS IN MATTERS ON SEPTEMBER 4, 2001 AGENDA Agenda Item #9 - Adopt plans and specifications for the rehabilitation of Sanitary Sewer Pump Station No 6 — Project No. pw 01 -12 — Approved Capital Improvement Project (estimated cost = $397,635.00). — Mayor Gordon has a potential conflict. Agenda Item #13 - Staff to seek City Council direction regarding the acquisition of land for recreational purposes from Thomas Properties. — Council Member Wernick has a potential conflict. There are no other potential conflicts on agenda items mb /n /conflicts for agenda EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING: Special Orders Of Business AGENDA Presentation of the fiscal year 2001 -02 Capital Improvement Program recommendations by Mr Mike Rotolo, Chairman of the Capital Improvement Program Advisory Committee (CIPAC) RECOMMENDED COUNCIL ACTION- Receive the CIPAC recommendations for consideration for the fiscal year 2001 -02 budget BACKGROUND AND DISCUSSION' The CIPAC has received Capital Improvement Project requests from City staff and the general public These requests were discussed at the Committee's meetings during March, April and May of 2001 The CIPAC has now submitted its recommendations for Capital Improvement Projects for City Council consideration of funding in fiscal year 2001 -02 ATTACHED SUPPORTING DOCUMENTS FISCAL IMPACT: None Capital Improvement Project Operating Budget. Amount Requested: Account Number Project Phase. Appropriation Required: ORIGINATED BY. Date: AUG 2 9 mi PW-COUNCIL OBISEPTEMBER 04 05 (Tuesday 08128/07 4 00 P M ) 1 li 8 EL SEGUNDO CITY COUNCIL MEETING DATE- September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING: Special Order of Business AGENDA DESCRIPTION: Public Hearing to discuss FY 2001 -2002 Preliminary Budget and Five -Year Capital Improvement Plan RECOMMENDED COUNCIL ACTION' > Conduct Public Hearing, Close or Continue the Public Hearing to September 18, 2001, and ➢ Schedule budget for adoption at the September 18, 2001 meeting BACKGROUND & DISCUSSION' The Preliminary FY 2001 -2002 Preliminary Operating and Five -Year Capital Improvement Budget were distributed to Council on August 4, 2001 The FY 2001 -2002 budget process began on May 16, 2001 with the budget kickoff for staff Departments were given budget instructions and specific guidelines as directed by the City Manager On July 16, 2001, the City Council held a Strategic Planning Session with the City Manager and all department heads. During this planning session, the City Council reviewed departmental projects and established priorities and set the general direction for the next fiscal year Projects were added or deleted based on the priority established together by the City Manager, all departments, and the City Council ATTACHED SUPPORTING DOCUMENTS: FISCAL IMPACT. Discussion to Adopt FY 2001 -2002 Preliminary Operating and Five -Year Capital Improvement Budget Operating Budget Amount Requested: Account Number: Project Phase. Appropriation required: ORIGINATED' Bret M Plumlee, Director of Finance BY, Date: S /L z/o� Z21j 2 J DISCUSSION (CONTD). The budget Impact of any new projects is Included in the FY 2001 -2002 Preliminary Budget On July 17, 2001 the City Council reviewed the status of FY 2000 -2001 revenues and expenditures compared to budget and approved revenue and appropriation assumptions, which are included in the FY 2001 -2002 Preliminary Budget On August 21, 2001 a budget workshop was held to discuss the budget in detail The final steps in the process are a public hearing on September 4, 2001 and final budget adoption on September 18, 2001 10 EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING: Unfinished Business AGENDA DESCRIPTION: Presentation of redesigned city web site RECOMMENDED COUNCIL ACTION: Receive and file the presentation by City Web Committee BACKGROUND & DISCUSSION: Late last year a city wide staff Web Committee was formed to see what could be done to improve functionality and design of the City's Web Site. (Continued on page two ) ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: Operating Budget: None Amount Requested: None Account Number: Project Phase: Appropriation required: ORIGINATED: DATE: 8/24/01 Lee Robinson, Information Systems Manager Bret Plumlee, Finance Director REVIEWED BY: DATE: Z<��_ Mary Str 2r City Manager 3 II BACKGROUND & DISCUSSION (Continued): The committee began by reviewing many city sites and selecting the best Ideas that were observed to be incorporated into El Segundo's site Goals for the site were set and included such things as ease of navigation, consistent look and feel, and fast loading From this a strategic plan was created along with sample pages The committee reviewed the strategic plan with the City Council Technology Subcommittee, and met with potential web site developers, and selected Idyll Mountain Internet to help prepare a site specification Information Systems staff in conjunction with the Web Committee, the Technology Subcommittee, and Idyll Mountain Internet has now completed the non - interactive portion of the site, with emphasis on improved design and functionality of the site This portion presents to the visitor a wealth of information about the city and activities that are available Some forms and documents are available and more will be added over the next few weeks Staff is simultaneously working with Idyll Mountain Internet to develop interactive features over the next three to six months Some of the features will include Online searching of the Library catalog system by the end of September Electronic forms submission in the late September to early October time frame • Online registration for Recreation and Parks activities We will add more interactive functionality as we learn more about the needs of the community 12 EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING: Committees, Commissions, and Boards AGENDA DESCRIPTION' Risk Management Organizational Study and Implementation RECOMMENDED COUNCIL ACTION: Receive and file Risk Management Organizational Study Approve option of Combination of In- house /Contracted Risk Management (Fiscal Impact $15,000 additional ongoing personnel costs, $65,000 one- time professional services) Authorize settlement authority to the Risk Manager for claims to $10,000 and to the City Manager between $10,000 and $25,000 Claims above $25,000 would need City Council approval > Establish a pilot program of using outside counsel for defense of simple tort claims Guidelines and methods for measurement will be brought back for Council review BACKGROUND & DISCUSSION: In FY 1999 -2000, City Council formed an ad hoc subcommittee consisting of Council Member McDowell, Council Member Gaines, the City Manager, City Attorney, and Director of Finance to analyze the risk management and city ATTACHED SUPPORTING DOCUMENTS: Risk Management Organizational Study FISCAL IMPACT* FY 2001 -2002 Adopted Budget $80,000 Operating Budget: Amount Requested, Account Number: Project Phase. Appropriation required: $0 $80,000 2501.4101 $15,000; 2501 -6214 $65,000 Approve In- house /Contracted Risk Management Approve funding through adoption of FY 2001 -2002 Budget Kelly McDowell, City Councilman John Gaines, City Councilman n, City Manager 8/28/01 11 19 AM T BACKGROUND & DISCUSSION (CONTD): attorney functions The primary objective of the subcommittee was to analyze ways to improve the efficiency of the risk management function in the most cost effective way The City Council approved entering into an agreement with Armtech to evaluate the risk management function and ways it could be improved The subsequent study was completed and is attached to this report Armtech Report Summary: Armtech's report contained three risk management staffing options for the City to consider 3 Staffing Options Option 1 Reclassify an Existing Position Description This approach would utilize the services of an existing staff member to work as a full -time Risk Manager This option would be the easiest to implement by reclassifying an existing position, however, it would not be possible without severely impacting existing operations Another problem with this option is that the City would not have the experience of either a full -time on -site risk management professional or the supplement of a risk management specialist by contract This option is not recommended either by the subcommittee or by Armtech. Option 2 Hire a Risk Manager Description This approach would require the City to hire a full -time Risk Manager as an employee of the City This is Armtech's recommendation. The benefit of this option is that the City would have the services of an experienced, on -site Risk Manager to rely on for organizing and directing its risk management functions This option would address many of the recommended areas of improvement identified in Armtech's report One person would be assigned the responsibility for program 8128/01 11 25 AM 3 4 management and coordination, which would reduce the possibility of loss exposure or gaps in Insurance protection Other areas a full -time Risk Manager could Improve Include Identrlylng risk, risk financing, loss prevention, and claims management Additionally, In this option and In the next one, the time spent on risk management by the City Manager, Director of Finance, Purchasing Agent, Human Resources Manager, and the City Clerk would be reduced or eliminated One example is this position would have the ability to handle tracking compliance of contracts and relieve the City Clerk's office of this administrative task One disadvantage of this option Is the requirement to hire an additional position at an estimated cost of over $110,000 Including salary and benefits Additionally, staff feels many of the areas of Improvement Identified In Armtech's report can be addressed by the reorganization proposed In option three Option 3 Combination of In- House /Contracted Risk Manager Description This approach would utilize the services of an existing staff member to handle administrative risk management duties and use a contracted Risk Manager to assist the City in specific areas of risk management such as coverage analysis, risk financing decisions, and safety program oversight The City's In -house employee would be responsible for administering the remaining aspects of the risk management program The employee would report to the Director of Administrative Services This is the subcommittee's recommendation. Armtech's report also made the following recommendation Increase staff settlement authority on claims to the Risk Manager for claims up to $10, 000 and to the City Manager for claims between $10, 000 and $25, 000 Claims above $25,000 would need City Council approval The City Manager currently has claims settlement authority up to $5,000 Claims in excess of $5,000 require City Council approval Having the City Manager review claims under $5,000 consumes valuable time relative to the significance of the decisions Furthermore, the $5,000 threshold is rather low for submitting claims to City Council for approval In Armtech's experience with other cities, it is typical for risk managers to have settlement authority to $10,000 and the City Manager to $25,000 For claims excess of $25,000, the City Council approves the claim 8/28/01 11 25 AM 15 Subcommittee Recommendations: Based on the Armtech report and staff analysis over the past year, the subcommittee is now making the following recommendations to the City Council 1. Approve combination of /n- house/Contracted Risk Management. Both the subcommittee and staff feel the existing decentralized risk management function has room for improvement Some of this improvement will occur with the consolidation of the Administrative Services Department For example, the Human Resources staff under the direction of the Human Resources Manager has administered the Worker's Compensation program for the City and will continue to do so directly under the Director of Administrative Services beginning October 1, 2001 The Purchasing Agent and Director of Finance have been working on establishing Professional Services Agreement procedures, which address vendor contractual compliance while considering the level of risk exposure. Additionally, both positions have received risk management training through a combination of seminars, ICRMA board meetings, ICRMA University classes, in -depth interviews with both the Liability and Worker's Compensation Third Party Administrators, and risk management literature over the past two years The subcommittee's recommendation is to reclassify the Purchasing Agent as Risk Manager /Purchasing Agent and supplement the risk management function by entering into an agreement with a risk management professional If the City Council approves, staff will return to the City Council with a lob description for the reclassified position and will issue a request for proposal for risk management professional services Additionally, the currently vacant Account Technician position would be charged with the responsibility of supporting both purchasing and risk management functions With this recommendation, the subcommittee and staff feels many of the areas identified in the Armtech report that need improvement such as approve liability claims up to a preset amount, risk financing decisions, review of insurance clauses in contracts, determination of insurance required by contractors, insurance purchasing for property and all city programs, claims management, safety program oversight, and Risk Management Committee staff support can be addressed Many of these duties are currently assumed in other positions such as Director of Finance, City Clerk and City Manager The risk management professional will be responsible for training in -house staff and completing a scope of services identified in a Request for Proposal designed to strengthen the nsk management function The risk management professional would supplement in -house staff for a one -year period After one year, the scope 8/28/01 11 25 AM 16 would be greatly reduced to assisting in -house staff on improving one or two specific risk management programs The risk management function will be evaluated over a one -year period, and a progress report will be made to the City Council at the end of the first year 2. Increase staff settlement authority on claims to the Risk Manager for claims up to $10,000 and to the City Manager for claims between $10,000 and $25,000. Claims above $25,000 would need City Council approval. The subcommittee and staff concur with this recommendation identified in the Armtech report As stated above, current staff level authority is very low compared to other cities Increasing the staff level authority for settling claims will save money by reducing time spent by the City Attorney's office on non - litigated cases 3. Establish a pilot program of using outside counsel for defense of simple tort claims. Guidelines and methods for measurement will be brought back for Council review. Staff will develop a pilot program of using outside counsel for defense of simple tort claims and develop guidelines for measurement The guidelines will also address specifically which types of high risk or precedent - setting cases will not be outsourced The objective of using the outside firms to litigate certain types of cases is to provide the City with the most cost effective formula for litigating cases 8128/01 11 25 AM 17 I DD� ECH CITY OF EL SEGUNDO, CALIFORNIA RISK MANAGEMENT ORGANIZATIONAL STUDY May 11, 2001 23701 Blrtcher Drive, Lake Forest CA 92630-7783 (949) 472 -8324 • FAX (949) 472 -9228 • www armtech com Independent Consultants V'. • � ' 16 19 p D ECH May 11, 2001 819 -001 City of E1 Segundo Finance Department 350 Main Street El Segundo, California 90245 -3895 Arm Mr Brett Plumlee RISK MANAGEMENT ORGANIZATIONAL STUDY On behalf of the ARM Tech audit team, we are pleased to submit the Risk Management Organizational Study Activities leading to this report have included • Interviews with key risk management personnel, the City Manager, City Clerk, City Attorney, City Council member and claims administrators • Review and analysis of the City's risk management functions and staffing, benchmarkmg data from other cities, and the ICRMA claims administration audit • Review of a summary of insurance policies, budget information, loss summaries, fob descriptions and other pertment data supplied by the City Work on this project was directed by Steven P Kahn Peter F 7unker led the field work and analysis of risk management organization Michael M Kaddatz provided peer review 23701 e,rrcher Drive Lake Forest CA 92630 -7783 (949) 472 -8324 • FAX (949) 472 -9228 • www ormtech com Independent Consultants 20 We appreciate the opportunity to assist the City and thank personnel involved in this project for their participation and support Respectfully submitted, ADVANCED RISK MANAGEMENT TECHNIQUES, INC B1( �� _ By Steven P Kahn, CPCU, ARM Peter F Junker, Managing Director Semor Consulta MMK/PFJ pem C 1EM=205egundo 5 -11 -01 wpd 11 21 4F)VAN('F7) (?I',V NALN CNIT TC(`LJNI nlirc ini� TABLE OF CONTENTS I Executive Summary II Program Costs A Cost of Risk B Benchmarking — Workers Compensation C Benchmarkmg — Liability III Risk Management Organization A, Structure B Staffing C Placement D Objectives I`' Tasks And Support Systems A Claims Administration B Loss Control . C Management Reports iii a,DVANCED RISK MANArGNAPNIT t Nt el I 3 3 6 8 13 13 18 19 20 21 21 22 23 22 I. EXECUTIVE SUMMARY The purpose of this study is to evaluate the City's alternatives for organizing the risk management function to obtain best results The major subjects of our analysis included • Program costs • Risk management organization • Tasks and support systems Our most important findings and recommendations are summarized below Program Costs The property, liability and workers compensation programs now cost about $1 7 million total per year, or 3 0 % of the operating budget This cost, usually referred to as the "cost of risk" (COR), includes insurance premiums, self - insured losses and all directly related administrative expenses By comparison, for public entities with similar operations, the COR usually ranges from 2.0% to 3.5% of the operating budget. The cost of City workers compensation claims per $100 of payroll increased 73.5 % from the 1995 - 1997 period to the 1997 - 1999 period. This increase was greater than the increase for the same periods for the cities of Manhattan Beach, Hermosa Beach, Redondo Beach, Arcadia and Chmo (referred to herein as the benchmark cities)_ The greatest increase for these cities was 55.7% The City's average workers compensation claims cost increased 123.3 % from the 1995 - 1997 period to the 1997 - 1999 period This increase was also greater than the increase for the same periods for the benchmark cities The next highest increase in the benchmark cities was 55.2% The number of workers compensation claims per 100 employees decreased by 9.5% for the City from the 1995 - 1997 period to the 1997 - 1999 period This decrease was greater than that of the benchmark cities The next largest decrease was 5 7 % Risk Management Organization The City distributes risk management functions among eight employees in different departments and three outside contractors While risk management is performed, no one person is assigned responsibility for program management and coordination. This approach 1 23 LF�A /4N('PF) R11,V MANIA(,7t\A - NIT Tt- r' W NIIr)IICC INI(� could cause the City to be unaware of loss exposures and /or have a gap in insurance protection It is apparent that the average workers compensation cost per claim is high compared to the benchmark cities (see Table 11-2, "2 Average Cost per Claim") Liability litigation expenses for the period from 7/1/93 to 6/30/98, ranged from 519 to 679 of reported incurred losses (see Table III -3) The usual range is from 25 9 to 30 % of incurred losses The most effective way for the City to manage its risk and the related costs is to have an experienced Risk Manager on staff *� We recommend the City consider hiring a full -time experienced Risk- Manager. Risk managers most often report to an administrative services, human resources or finance department director The most common placement is in the finance department Many risk management decisions have significant financial considerations Having the Risk Manager report to the Director of Finance will fit in nicely with the City's reorganization plan to move Human Resources (where the workers compensation administration functions now are) to this area as well We recommend that the City's risk management function be consolidated under the Director of Finance Tasks and Support Systems The City Manager has claims settlement authority up to $5,000 Claims in excess of $5,000 require City Council approval Having the City Manager review claims under $5,000 consumes valuable time relative to the significance of the decisions. Furthermore, the $5,000 threshold is rather low for submmmittmg claims to City Council for approval In our experience with Southern California cities, it is not uncommon for city managers to have settlement authority ranging from $25,000 to $100,000 before having to submit claims to City Council. Typically, the Risk Manager has authority to $10,000, and the City Manager to $25,000 For claims excess of $25,000, the City Council approves the claim We recommend the City consider giving senlemem authority to the Risk Manager for claims to $10, 000 and to the City Manager for claims between $10,000 and $25,000. Claims above $25,000 would need City Council approval. The recommendations in this chapter are detailed in the body of the report. The report should be,read in its entirety to obtain a complete understanding of our findings 2 24 ��VANC F� RISk NAaNlLrGNnG-NIT inir, It. PROGRAM COSTS Managing risk is an ongoing process Monitoring the COR provides important feedback on how successful a risk management program is and where changes are indicated A. COST OF RISK COR is a concept that attempts to quantify and tabulate the amounts expended on risk treatment methods Mayor risk cost elements are 1 Insurance Premiums. Amounts paid to commercial insurers or risk retention pools 2 Self - Insured Losses. Losses paid under deductibles, self - insured retentions or from incidents simply not covered by insurance 3 Administration. Administrative expenses include contractor in-house staff expenses and related overhead associated with claims adjusting, loss prevention and financial management of risks 4 Indirect Risk Costs. These are secondary expenses that arise as a result of losses incurred Examples of indirect costs are • A supervisor's time spent filling out accident reports • Overtime wages or additional employee costs necessary to replace the productivity of an employee lost to an injury In this report, we concentrate only on the direct COR (the fast three items above) Indirect costs are virtually impossible to tabulate Note, however, that experts have estimated indirect risk costs at anywhere from two to ten times the direct cost of losses incurred Since indirect risk costs are a function of losses, measures taken to reduce losses in the first place are the best way of reducing all risk costs, direct and indirect 3 25 4DV4NCED RISK MANAr�FMFNT TFf NNIInllI :Q Ini r, Table 11-1 tabulates the estimated direct COR for the City The City's 2000 direct COR is about $1.7 milhon This is 3 0% of the City's operating budget ($57.2 million) For comparison, the COR of small -to- medium -sized California cities with which we are familiar usually ranges between 2 0 % and 3 5 % of the operating budget The City's COR is in the upper end of this range Table 11 -1 2000 Cost of Risk Insurance Premiums' a Liability $211,000 a Workers Compensation 25,000 a Property 16,000 Subtotal $252,000 Self- Insured Losses (including ALAO a Liabdny' $500,0001 a Workers Compensation' 800,000 a Property 0 Subtotal $1,300,000 Administration a Risk Management' $100,000 a Third -Party Administrators' 60,000 a Safety Consultant' 20,000 Subtotal $180,000 OR $1,732,000 Operating Budget"' $57,230,000 COR Compared to Operating Budget 3.0% Notes 1 Obtained from "Fiscal Year 2000 -2001 Preliminary Operating Budget " 2 ARM Tech estimate of losses, based on five -year loss summaries provided by Colen & Lee An actuarial study was not done by ARM Tech 3 ARM Tech estimate of losses, based on five -year loss summaries provided by CIPRA An actuarial study was not done by ARM Tech 4 ARM Tech estimate of administration expenses based on a percentage of salary and benefits for employees with risk management responsibilities 5 Total estimated expenditures for the City for 2000 - 2001 less Total Debt Service Funds, Equipment Replacement and Capital Improvement Funds 4 26 A��daNCr=7 RIO)K MANIAr- rNA;:NIT TGr t- rNllr,iicC InIel Graph 11-1 illustrates the breakdown of the City's COR by expense type The priman goal of a risk management program is to reduce an organization's COR and achieve an optimum balance between premiums, self - insured losses and administration costs By far, the largest factor driving the City's COR is self - insured losses Losses account for over 75 % of the COR With retentions as high as $400,000 per loss. a single large loss can increase the COR by 23% ($400,000 — $1,700,000 = 23 %) This highlights the importance of managing risk at the City through loss prevention, clauns management and overall management, such as would be provided by a Risk Manager Losses 75 $1,3C Total Risk Cost $1,732,000 Graph II -1 2000 COR by Expense Type 5 namimstration 104% $180,000 Insurance Premium 145% $252,000 27 ADVr.NCED RISK MANAC;rMFNT TF('uNiC-)Hi:Q INI(� B. BENCHMARKING - WORKERS COMPENSATION Table II -2 compares the City's workers compensation loss rate per $100 of payroll, the average cost per claim and the number of claim per 100 employees to those of the benchmark cities The benchmark cities were chosen by the City Table II -2 Workers Compensation Benchmarking 1. Loss Rate per $100 of Payroll City 1995-1997 1996-1998 1997-1999 (A) El Segundo $1 96 $2 71 $340 (B) Hermosa Beach 2.84 4.17 4 04 (C) Manhattan Beach 2.12 2.58 330 (D) Redondo Beach 2.83 2.63 4.23 (E) Arcadia 1 77 1.54 1.36 (F) Chino 2.37 2.33 2.96 (G) All cities [average for cities (A) through (F) above] $232 $2.67 $3.22 2. Average Cost per Claim City 1995-1997 1996-1998 1997-1999 (A) El Segundo $4,985 $7,308 $11,131 (B) Hermosa Beach 4,968 7,674 7,709 (C) Manhattan Beach 4,744 5,644 7,162 (D) Redondo Beach 6,646 6,694 8,652 (E) Arcadia 5,642 4,931 4,695 (F) Chino 6,858 7,232 9,596 (G) All cities [average for cities (A) through (F) above] $5,641 $6,581 $8,158 131 28 4DV4- NCED RISK NA At\IArFNAr:N1T TGr�unI In 1 117 0 1 KID 3. Number of Claims per 100 Emnloyees (Incident Rate) City 1995-1997 1996-1998 1997-1999 W El Segundo 1416 13.93 12.81 (B) Hermosa Beach 20.22 1961 19.06 (C) Manhattan Beach 14.21 13.77 1410 (D) Redondo Beach 11 10 11 78 11 73 (E) Arcadia 12.00 11.87 11.77 (F) Chino 11.58 10.74 1151 (G) All cities [average for cities (A) through (F) above] 13.88 13.62 13.50 The logs rate per $100 of payroll increased by 73.5°% from the 1995 - 1997 period to the 1997 - 1999 period for the City During this same period, the loss rate increased 42 3 % for Hermosa Beach, 55 7% for Manhattan Beach, 49.5°% for Redondo Beach and 24 9% for Chino The loss rate for Arcadia actually decreased by 23.2 % during this same period. These numbers indicate that the City's loss rate is increasing at a higher rate than that of its benchmark partners The average cost per claim increased by 123.3 % from the 1995 -1997 period to the 1997 - 1999 period for the City During this same period, the average claim cost increased 55.2 % for Hermosa Beach, 51.0% for Manhattan Beach, 30.2% for Redondo Beach and 39 9% for Chino The average cost per claim for Arcadia decreased by 16 8 % during this same period These numbers indicate that the City's average claim cost is also increasing at a higher rate than that of its benchmark partners. The number of claims per 100 employees decreased 9.5 % from the 1995 - 1997 period to the 1997 - 1999 period for the City During this same period, the number of claims decreased 5.7 % for Hermosa Beach, 0 8 % for Manhattan Beach, 1.9 % for Arcadia and 0 6 % for Chino The incident rate for Redondo Beach increased by 5.7 % These numbers indicate that the City's incident rate is decreasing at a higher rate than that of its benchmark partners While the City is doing a good fob of reducing the number of workers compensation claims, claim costs continue to rise The support of the City Council and senior staff together with increased staff attention will assist in isolating cost increases and implementing mitigation efforts 7 29 �,DVANCED RISK MANAC;FMFNT TF� Nrv�i�iiF� in)^ C. BENCHMARKING - LIABILITY Table H -3 compares the City's liability loss rate per $ 100 of payroll, the average cost per claim and the number of claims per 100 employees to those of the benchmark cities We benchmarked the City's liability losses against six other cities selected by ARM Tech All of the benchmark cities either have or have had risk managers Liabiht} loss data is not public information. There is no central source from which to draw this information and most cities consider the information to be confidential We selected cities we believe to be comparable That is, they have police and fire departments, and can be compared to the City by size Table II -3 Liability Benchmarking 1 Total Reported Incurred Losses City 1996-1998 1997-1999 1998-2000 (A) El Segundo $1,131,338 $986,275 $409,314 (B) City 1 1,936,702 1,638,450 527,188 (C) City 1,149,174 1,064,624 365,335 (D) City 3 3,933,102 3,420,076 3,494,552 (E) City 4 6,559,646 4,625,895 2,881,962 (F) City 5 1,232,707 2,051,830 2,079,896 (G) City 6 2,038,229 2,505,782 2,312,906 (H) Total (A) . (G) $17,980,898 $16,292,932 $12,071,153 Note 1996/98 is for claims reported 7/1/96 through 6/30/98 and valued at 6/30/00 All data is valued at 6/30/00, except City 1, which is valued 12/31/99 (the late ;t date available), and El Segundo, which is valued as of 12/31/00 K JO =and /O nl(� -7) DICt! tvli NI A(`CAACNIT Tr:("LJKiirli irc^ ini� 2 Total Number of Reported Claims City 1996-1998 1997-1999 1998-2000 (A) EI Segundo 73 69 62 (B) City 1 249 236 157 (C) City 2 261 294 266 (D) City 3 385 344 267 (E) City 4 662 653 635 (F) City 5 323 292 227 (G) City 6 499 532 502 (H) Total (A). (G) 2,452 2,420 2,116 Number of Employees City 1996-1998 1997-1999 1998-2000 (A) El Segundo 638 677 720 (B) City 1 2,047 1,931 1,804 (C) City 2 2,320 2,549 2,695 (D) City 3 2,323 2,256 2,303 (E) City 4 4,123 4,038 4,072 (F) City 5 1,874 1,849 1,889 (G) City 6 2,837 2,722 2,708 (H) Total (A) ... (G) 16,162 16,022 16,191 w 31 4'I`V4NCED RISK MANAGFMFNT TF:rHNIICIlIGC IN (� 4 Total Pavroll (000s) City 1996-1998 1997-1999 1998-2000 (A) El Segundo $33,797 $36,816 $39,776 (B) City 1 65,348 67,936 70,207 (C) City 2 91,480 96,385 100,299 (D) City 3 105,562 107,451 107,279 (E) City 4 120,555 123,507 126,548 (F) City 5 74,848 78,451 82,996 (G) City 6 83,760 87,758 91,511 (H) Total (A).. (G) $575,350 $598,304 $618,616 Loss Rate ter $100 of Payroll City 1996-1998 1997-1999 1998-2000 (A) El Segundo $3.35 $2.68 $1.03 (B) City 1 2.96 2.41 0.75 (C) City 2 1.26 1.10 0.36 (D) City 3 3.69 3.18 3.26 (E) City 4 5 44 3.75 2.28 (F) City 5 1 65 2.62 2.51 (G) City 6 243 2.86 2.53 (H) Average (A). .(G) $2.97 $2.66 $1.82 Note Loss Rate — Total Incurred Losses , Total Payroll x 100 10 32 LVDV4NCf F) Pl';V NAANAi;GNACNIT TCr`uNiirniircn t � ( . 6 Average Cost per Claim City 1996-1998 1997-1999 1998-2000 (A) El Segundo $15.498 $14,294 $6,602 (B) City 1 7,778 6,943 3,358 (C) CIN 2 4,403 3,621 1,373 (D) City 3 10,216 9,942 13,088 (E) City 4 9,909 7,084 4,539 (F) City 5 3,816 7,027 9,163 (G) City 6 4,085 4,710 4,607 (H) Average (A) ... (G) $7,958 $7,660 $6,104 Note Average Cost Per Claim — Total Incurred Losses -. Number of Reported Claims 7 Number of Claims per 100 Employees (incident Rate) City 1996-1998 1997-1999 1998-2000 (A) El Segundo 11.44 10.19 8.61 (B) City 1 12.16 12.22 8.70 (C) City 2 11 25 11.53 9.87 (D) City 3 16.57 15.25 11.59 (E) City 4 1606 16.17 15.59 (F) City 5 17.24 15.79 12.02 (G) City 6 17.59 19.54 18.54 (H) Average (A) ..(G) 14.62 14.38 1213 Note Incident Rate — Number of Reported Claims , Number of Employees I1 33 `DVLNCED RISK (\!IAN/-v(:�E:NACNIT TGr`UNltr-�iiE70 inf/� Information in the tables indicates 1 The City's loss rate has dropped from higher than average to lower than average 2 The City's average cost per claim is about twice the average of the benchmarking cities for earlier years, but only slightly higher for the most recent period The City has identified four large claims that have impacted the average cost of claims 3 The City's incident rate has remained favorable throughout the period shown Because City loss data is valued as of December 31, 2000, and most of the loss data of other cities is valued as of June 30, 2000, comparisons for the period 1998 - 2000 may be misleading 12 34 Aj'�\aNC'Fr1 I?I1 lV \AAN�4(,CwiCNIT Tr: r�un1Inii7"c ini� 111. RISK MANAGEMENT ORGANIZATION This chapter examines the City's organizational structure, staffing. placement and objectives A. STRUCTURE We compared the risk management organs attonal structure of El Segundo to the benchmark cities, as shown in Table III -1 Table 111 -1 Structural Comparisons Full- Service includes Police, Fire, Public Works, Streets & Traffic, Parks and Recreation, and Sewer & Water The City's operating budget is greater than that of Manhattan Beach, Arcadia and Hermosa Beach, but lower than Redondo Beach and Chino. Although the City's statistical population is lower than the other cities in Table HI-1, its daytime population is greater than all of 13 35 AD``AN= 21SK MANAGEMENT TFr PNIC)iIGC IN1r� Full -Time Risk Workers Operating Full- Risk Management Comp. Claims City Budget Population FTEs Service' Manager Support Staff Handling EI Segundo $57 16,000 365 Yes No 2 Third-part, million (80,000 (70 Police) administrator davnme) (65 Fire) (TPA) Hermosa $194 19,631 134 Yes Yes 1 TPA Beach million (38 Police) (21 Ftrel Mannattan $50 34,000 250 Yes Yes 0 5 TPA Beach million (63 Police) (30 Fire) Redondo $757 67,638 462 Yes Yes 05 TPA Beach million (106 Police) (67 Fire) Arcadia $264 52,000 304 Yes Yes 1 TPA million (104 Police) (57 Fire) Chino S80 67,500 254 Yes Yes 1 TPA million (85 Police) (Contract Fire) Full- Service includes Police, Fire, Public Works, Streets & Traffic, Parks and Recreation, and Sewer & Water The City's operating budget is greater than that of Manhattan Beach, Arcadia and Hermosa Beach, but lower than Redondo Beach and Chino. Although the City's statistical population is lower than the other cities in Table HI-1, its daytime population is greater than all of 13 35 AD``AN= 21SK MANAGEMENT TFr PNIC)iIGC IN1r� them The number of City FTEs is only exceeded b} the number of FTEs at Redondo Beach All the benchmark cities provide police services and all but one provide fire services (Chmo sub - contracts this service) All the benchmark cities also provide public works and sewer services Most of the benchmark cities provide parks and recreation, and water services The significant difference between the City and its benchmarkmg partners is hoA the benchmarking partners organize their risk management department The City's risk management functions are divided among various internal positions and outside firms Table 111 -2 outlines how risk management duties are distributed Table 111 -2 Current Risk Management Responsibilities Position /Firm Risk Management Responsibility Director of Finance Risk financing decisions, review contracts and determine type and amount of insurance required Human Resources Manager Oversee workers compensation program Southern California Risk Management Associates Administers workers compensation claims City Attorney Defense of litigated cases, claim review Colen & Lee Administer liability claims City Manager Approve liability claims to $5,000 City Council Approve liability claims exceeding $5,000 Individual Departments and Consultant Loss control /safety Purchasing Agent Insurance purchasing/contract administration City Clerk Track contract and compliance requirements Risk Management Committee (City Attorney, City Clerk and City Council Member) Periodically review risk management topics 14 AD\I'LiIICED RISK MANI A(`,: -NALNT Ttr'LjN11r1IIrC' I K I � The primar} objective of risk management is to minim, a and stabilize the COR As 4 discussed in Chapter 11, the primary components of COR are premiums, losses and administration expenses The risk management activities required to keep these components at a minimum are described below D Risk Identification. This process involves identifying operations that could lead to an accidental property, liability or workers compensation loss Changes in operations or special use permits, contract awards and new equipment or property must be brought to the City's attention timely so that appropriate action can be taken The current decentralized risk management approach could conceivably lead to significant information being reported late or not at all Risk Financing. This process involves providing appropriate protection against the risk of catastrophic loss to the City Once the City's risks have been identified, risk management expertise is needed to determine proper coverage and limits to adequately protect the City against such loss exposures Awareness of alternative risk financing options will further assist the City in m,n,m, zing its costs By not having an experienced Risk Manager on staff, the City might not be aware of all its risk financing options Loss Prevention. This process involves activities designed to prevent or m,n,mne losses The City is exposed to the first $400,000 of every liability loss and the first $250,000 of each workers compensation loss Since losses account for 75% of the City's COR, loss prevention should be a top priority The City has a safety committee that is chaired by a safety consultant. Each City department has a representative on the committee The purpose of the committee is to coordinate OSHA mandated safety training, resolve general safety issues and address specific needs The safety consultant also inspects City facilities on an annual basis along with managers from the Building Safety, Fire Prevention and Building Maintenance Departments. Analysis of workers compensation claims is done by the Human Resources Department. Claims Management. This process involves making sure that clamis are handled promptly, effectively and efficiently in order to min mi a the ultimate cost The City's workers compensation claims are handled by a third -party administrator (TPA) The City also utilizes the services of a 15 ` 37 4',,DV -^ NrFIF) P10,V NAAn{1-1(,c�ACNIT TCr`uNiir-NiirC' I K t r contract City Attorney, or an outside law firm, to defend litigated cases As noted in Chapter 11, the City has the highest average cost per claim compared to the other cities in the workers compensation benchmarking survey This statistic is somewhat attributable to the City's high concentration of safety employees An experienced Risk Manager could help find solutions to reduce these costs The City also utilizes a TPA to handle its liability claims A Cm Attorney, or an outside law firm, provides defense of litigated cases There is some concern among senior City officials that the allocated loss adjustment expenses (ALAE), the amount paid for defense of its claims, is much higher than it should be As Table III -3 following indicates, the City 's liability ALAE ranges from 51% of total incurred losses to 67% for the period from 7/1/93 - 6/30/98 (1998 - 2000 was not used because losses are too new and not fully developed). The usual range for this expense item is between 25% and 30% of incurred losses The City's experience greatly exceeds this range Table 111 -3 Allocated Loss Adjustment Expense as a Percentage of Reported Incurred Losses Fiscal Year ALAE Reported Incurred Losses ALAE % 1997/98 $373,535 $644,839 58% 1996/97 267,961 438,986 61% 1995/96 567,630 851,030 67 °% 1994/95 635,789 1,258,168 51% 1993194 299,822 550,793 54% Although we have chosen to report this information, analysts of this expense item is outside the scope of this report However, this concern is another reason the City should consider having an experienced Risk Manger on staff. A more experienced Risk Manager would have direct control over the ALAS and would be more likely to achieve desired results IL 38 ADV-' NCFD RISK MANArFNIGNT Tt= r`umsr--i+rc ,n�111 The City now distributes risk management functions among various individuals in different departments and to outside contractors While risk management is being performed, no one person is responsibility for its effectiveness The City's approach could cause it to have a gap in insurance protection There is currently no one on staff with an ARM or CPCU designation or a degree in insurance No person is clearly responsible for minimizing the City's COR, which is 3 0% of the City's operating budget The City has three mayor options for reorganizing the risk management function These options are 1 Reclassify an Existing Position. This approach would utilize the services of an existing staff member as Risk Manager The problem with this method is that the City really needs to have a Risk Manager who is experienced and capable of coordinating, directing and overseeing all risk management activities These include identifying losses, making risk financing decisions, overseeing loss prevention activities and managin g the claims process for both liability and workers compensation It does not appear the City has an individual capable of filling this role 2 Combination of In-House/Contracted Risk Manager Split. This approach would utilize the services of an existing staff member to handle administrative risk management duties and use a contracted Risk Manager to assist the City in areas that require a higher level of technical competence, For example, a contractor could assist with risk financing decisions, coverage analysts and safety program oversight The City's in- house employee would be responsible for admini stering the remammg aspects of the nsk management program This method would be preferable to option one above Presumably, it would be less expensive than hiring a full-tune Risk Manager However, the actual cost would depend upon the amount of service contracted 3 Hire a Risk Manager. If the City adopted this approach, it would hire a full -time Risk Manager as an employee of the City The benefit of this choice is that the City would have the services of an experienced, on -site Risk Manager to rely on for organizing and directmg its nsk management functions 17 39 A,DVANCED RISK MANA(:�,-�AC:NT Tt r uriini1CO At this point, the risk management program needs the full-tune attention of an experienced individual to take steps to reduce the City's COR This is particularly true in the area of liability and workers compensation claim costs Due to the time and dedication necessan to address these concerns, the preferred method is for the City to hire a full -time risk management employee >- We recommend that the Cziy consider hiring an experienced Risk Manager B. STAFFING Table III4 illustrates the percentage of time spent by various employees on risk management activities Table III-4 Risk Management Administration Position Percentage of Time Spent on Risk Management Activities City Manager 15% Assistant City Manager 1 % Director of Finance 15% Purchasing Agent 20% City Clerk 5% Human Resources Manager 15% H R. Specialist 10% Office Specialist 25% If the City hires a Risk Manager, the time spent on risk management by the City Manager, Director of Finance, Purchasing Agent, City Clerk and Human Resource Manager would be greatly reduced or eliminated The Risk Manager would assume the responsibilities currently held by these individuals as well as those of the Risk Management Committ ee These would include the following • Approve liability claims up to a pre -set limit • Risk financing decisions 0 M ACVGNC PF) RIQK KAANOi, ACNIT Tr_ hunii�i�rr ��. • Insurance purchasing • Review of insurance clauses in contracts • Determination of insurance required by contractors • Monitoring certificates of insurance • Claims management • Workers compensation program oversight • Safety program oversight The five positions affected by the hiring of a Risk Manager account for approximately 575,000 of the City's $100,000 risk management administration expense The City would not be able to recoup any of this expense by hiring a Risk Manager. However, the employees in Table M-4 would be free to spend more time in their specialty areas We estimate that the salary of a full-time Risk Manager would be in the range of $60,000 to $84,000 Benefits would cost another 30% - 35 %, and office and overhead would add another 5 % This is a total of $81,000 to $118,000. It is also conceivable that a Risk Manager might be able to assume some, if not all, of the responsibilities of the safety consultant The amount budgeted for the Safety Consultant for fiscal year 2000 -2001 was $20,000 C. PL4 CEMENT Generally, Risk Managers report to either an Administrative Services, Human Resources or Finance Director The most common placement is in the Finance Department. The reason for this approach is that Risk Management's decisions and activities have a significant financial impact on an entity We believe the Finance Department is a good place for the City's Risk Manager This will also fit in nicely with the City's reorganization plan to move Human Resources to this area as well The Risk Manager will need to rely on the services of the Human Resource Specialist and the Office Specialist, both of whom work in the Human Resources Department It is also possible that the Risk Manager might want the Human Resources Manager to continue with some risk management duties D We recommend that the Risk Manager report to the Director of Finance. 19 41 ADV4,NCED RISK MANAGFMFNT TFrNNiini«c init� D. OBJECTIVES Table III -5 below shows the objectives the Cut} should establish for risk management and the period of tune reasonable to accomplish them Table III -5 Risk Management Schedule Objective Timetable Hire an experienced Risk Manager Three months Reduce the average cost per workers compensation claim by 20% Two years Reduce ALAE to 30% of incurred losses Two vears Establish property and liability safety training for all employees (Chapter IV) Six months Produce annual risk management report (Chapter IV) One year Re] 42 ADV'yNCEL) RIiV NAANIAC,CN /FNIT TC�unii���r� IV. TASKS AND SUPPORT SYSTEMS This chapter analyzes the tasks and systems in place that support the risk management functions In particular, these include claims administration, loss control, management reports and risk management records A. CLAIMS ADMINISTRATION Workers compensation claims are arimintstered by Southern California Risk Management Associates ( SCRMA), a TPA Litigated claims are handled by the City Attorney or an outside law firm The Human Resources Department provides coordination and oversight of these activities Overall, the City and SCRMA received high marks from department heads' evaluations of claims - handling However, SCRMA and the Fire Chief both expressed frustration at the lack of a modified duty program According to SCRMA, the firefighters' doctor of choice and union seem to be barriers to success in this area With support from the Council and senior staff, a Risk Manager would be able to find solutions to this problem and mitigate the City's high claim costs Liability claims are administered by Colen & Lee, a TPA. Litigated claims are handled by the City Attorney or an outside law firm The City Manager has settlement authority up to $5,000 Claims in excess of $5,000 require City Council approval. Claims are initially received by the City Clerk's office and are then forwarded to the City Attorney The City Attorney's office then notifies Colen & Lee The TPA then contacts the claimant, obtains witness statements and takes pictures, if necessary If it is determined that the City is liable, an attempt is made to resolve the claim If there is no resolution, a lawsuit is usually filed by the claimant According to interviews with department heads, the claims administration process for both workers compensation and liability is effective Outsourcing these activities has proven to be efficient and cost - effective Having claims administered by an outside agency also eliminates any potential internal pressures and provides more objectivity. We concur that it makes sense for the City to outsource its workers compensation and liability claims administration One aspect of the claims process that concerns us is the procedure of having the City Manager review claims under $5,000 This activity consumes high -value time relative to the significance of the decision The $5,000 threshold is low for submitting claims to the 21 43 ADVANCED RISK MAi\1A(1_;:NAC:N)7 Tt r UNr. r„17r' I^,^ Council whose time is also better snatched to more significant issues In our experience with Southern California cities, it is not uncommon for municipalities to have settlement lusts ranging from $25,000 to $100,000 before having to submit claims to City Council for approval Typically, a Risk Manager has authority to $10,000 and the City Manager to $25,000. The City Council approves claims in excess of $25,000 We recommend that the City consider giving settlement atahonrn to the Risk Manager for claims to $10, 000 and to the City Manager for claims between $10,000 and $25,000 Claims above $25,000 would need Cin1 Council approval. B. LOSS CONTROL As noted in Chapter 11, 75% of the City's COR is comprised of self - insured losses Reducing the COR requires an aggressive and well- planned loss control program As we discussed earlier in Chapter III, the City utilizes the services of an outside safety contractor to chair the safety committee and perform OSHA training and safety inspections Individual departments also engage in loss control activities For example, driver training and vehicle operation instruction is provided in Public Works The Police Department provides self defense, critical policy testing (shooting, pursuit, use of force), physical fitness and advanced officer training programs. Overall, the City seems to be effective at reducing the incidence of workers compensation claims In fact, the number of claims per 100 employees has decreased from a rate of 14 16 for the period 1995 - 1997 to 12 81 for the period 1997 - 1999 Much of this can be attributed to using the same safety consultant for the last 15 years This length of involvement has provided an ongoing awareness of the City's safety needs. At this point, it makes sense for the City to continue using a safety consultant. However, the City might reconsider the nature and extent of this relationship if it hires a Risk Manager Depending on the Risk Manager's skills and time available for loss control activities, it might be more prudent to bring some, if not all, of loss control in- house. 22 M ADVANCED RISK MANAC4FNAF-NIT Ir,I /� C. MANAGEMENT REPORTS It is important to keep management appraised of risk management problems. goals and program costs Awareness of these aspects will help focus City -wide attention on the management of its risks This communication can best be accomplished by submitting an annual Risk Management report to the City Manager and department heads The report should consist of' Introduction. This section would include three to five pages of text covering Risk Management goals for the coming year and problems solved during the past year 2 COR. This section would show the City's current COR It would be beneficial to show the COR as a percentage of operating expenses for each of the most recent five years 3 Large Claims. This section would include a discussion of large claims which have been settled during the year D We recommend that the City prepare and distribute an annual Risk Management report. One way to enlighten department heads about loss activity in their areas is to provide them summary loss reports The types of information that should be distributed includes- 1 Actual liability and workers compensation loss experience for each department Thus would include number of claims, losses paid, losses outstanding and total incurred This report should be distributed monthly 2 Breakdown of workers compensation losses by type of mjury and activity This report should be distributed quarterly. Communicating this information to department heads will increase their awareness of their loss activity and will help them form ideas for preventing losses We recommend that the City distribute loss reports to the department heads a] 45 ADVANCED RISK MANAGEMENT TEC;HNI2I1Fq lNlr, EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA DESCRIPTION, MEETING DATE. September 4, 2001 AGENDA HEADING: Consent Agenda Award of contract to Belaire -West Landscape, Inc, for Washington Park Improvements — Project No PW 01 -02 - Approved Capital Improvement Project (contract amount option 1 = $135,000 or option 2 = $270,000) RECOMMENDED COUNCIL ACTION Award contract for option 2 and authorize the Mayor to execute the contract on behalf of the City BACKGROUND AND DISCUSSION: On August 7, 2001, the City Council adopted plans and specifications for Improving Washington Park and authorized staff to solicit construction bids The project proposes development of a park within the currently undeveloped Southern California Edison Company right -of -way (Additional discussion on the next page ATTACHED SUPPORTING DOCUMENTS- 1 Project budget 2 Bid summary. 3 Location map FISCAL IMPACT. Capital Improvement Project: Amount Requested: Account Number- Project Phase: Appropriation Required: ORIGINATED BY uA $160,000 00 (balance) $300,000 00 (option 2) 301 -400- 8202 -8469 Award of construction contract $140,000 (option 2) AUG 2 9 2001 te: 46 M- COUNCIL09%MPT MBERU01 rr a y=&D1100PM) 5 BACKGROUND AND DISCUSSION (continued): The City Clerk received and opened a total of eight (8) bids on August 28, 2001 The bid package included several options for bidding to provide flexibility for the scope of the contract award Enclosed is the summary of bids received with the low bid amounts for the following scopes of work Scope of Option 1: Grading, turfing and irrigation for both the south and north parks (low bid amount- $135,000.00). Scope of Option 2: (total project) All work included in option 1 plus walkways, trees, shrubbery, site furnishings for both the south and north parks (low bid amount- $270,000.00). The total project low bid of $270,000.00 was below the architect's estimate of $327,000.00 The project scope is consistent with the desires of those who attended the neighborhood park planning meetings and staff recommends award of option 2 for the amount of $270,000 00 to Belaire -West Landscape, Inc Staff has received favorable responses from the low bidder's references 4. PW- COUNCIL 0915EPTEMBER 0101 (TuW y OWW 1WPM) Construction Contact .Contingencies WASHINGTON PARK IMPROVEMENTS Total Cost Current Balance' Additional Appropriation Needed PROJECT BUDGET Option 1 Option 2 $135,000 $270,000 $ 15,000 $ 30,000 $150,000 $300,000 $160,000 $160,000 None $140,000 The landscape architect's fees for the project design were funded by the original project budget M- COUNCIL 0915EPTEMBER 0101 (Tueetley OB MI 100 PM) 48 WASHINGTON PARK IMPROVEMENTS BID SUMMARY Option No. 1: Award only grading, turfing and irrigation for both parks. Belaire -West Landscape, Inc $135,000 ,Sunrise Landscape $176,700 Green Giant $181,000 Ecology $216,600 Thomsen Landscape $219,300 John Ettlm $261,400 Ryco Construction $302,789 Oakridge $328,265 Option No. 2: Total project including trees, walkways and site furnishings for both parks Belatre -West Landscape, Inc $270,000 Sunrise Landscape $288,000 Green Giant $307,382 Ecology $339,600 John Ettlm $364,000 Thomsen Landscape $383,330 Ryco Construction $458,000 Oakndge $474,620 49 PW.COUNCIL OMEPTEMBER M OI (Tuesday OBaWl 1 OO P M ) —I Sa Lymossr►1►Y►1 INV1d NNad -'tlf11d3JN( G ..m...m.wa vumn o NOgNVdYi uuYd MOlOMRYM C� 6 YW g 0 i uE31 uv a W Y [R P • O R 0 MALN11f �VENUF � I I I • � 6 SIGNME ♦.I LL I � 5 50 ■111 1 �� i I �i � �I a. NI i N r� i t V�1 C� 6 YW g 0 i uE31 uv a W Y [R P • O R 0 MALN11f �VENUF � I I I • � 6 SIGNME ♦.I LL I � 5 50 §} ! ; § / | @ §T, /� §6!§ §f§ �| . ! n{ ! ;|!�§§ ■ |_: �| !)!§ §ee §u | | | § §' @ |ele |ER ■ /( « §§ |E�� ;§2|!(!( §� a :l;E ^, ■- ■ "2 =50 !| , NHl baw | <_ ;��§:■ :,� |� e §§ ■):Elmo! §§ |§_! ] ) � ; | ! !| � §! 7� �k |! /$ §) �! k ME - �1Ea |§ {k| � ki|�`■ /k ( 12 ! |.. — $f ` hip ! ■ �� CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 8/11/2001 THROUGH 8124/2001 -- Date Payee Amount Description 8/14/01 Union Bank 39,318 60 PGC -El Segundo, LLC payroll 8/15/01 Health Comp 2,92513 Weekly claims 8/10 8/16/01 Employment Development 34,969 69 State Taxes PR 04 8/16/01 IRS 183,314 59 Federal Taxes PR 04 8117/01 Federal Reserve Bank 15000 Employee Savings Bonds 8/17/01 Federal Reserve Bank 35000 Employee Savings Bonds 8122/01 Health Comp 2922 Weekly claims 8/17 8/11 - 8117/01 Workers Comp Activity 9,58804 SCRMA checks issued 270,645 27 DATE OF RATIFICATION: 0914/01 TOTAL PAYMENTS BY WIRE: Certified as to the accuracy of the wire transfers by Deputy Treasurer &AA1 PJ a 0 I Date Finance Director! Date ��yy City Manager o2 Date Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo 270,645.27 52 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, AUGUST 21, 2001 - 5:00 P.M. [OPEN SESSION BEGINS AT 5:00 P.M. FOR THE PURPOSE OF A PUBLIC MEETING] CALL TO ORDER - Mayor Gordon at 5.05 P M ROLL CALL Mayor Gordon Present Mayor ProTem Jacobs Present Council Member Gaines Present Council Member McDowell Present Council Member Wernick Present A SPECIAL ORDERS OF BUSINESS — 1 Workshop Discussion of FY 2001/2002 Preliminary Budget and Five -Year Capital Improvement Plan Bret Plumlee, Director of Finance gave a staff report Jim Hansen, Director of Community, Economic and Development Services, presented department highlights and responded to Council questions Andy Santamarla, Director of Public Works, presented department highlights and responded to Council questions Greg Johnson, Director of Recreation & Parks, presented department highlights and responded to Council questions Debra Brighton, Library Director, presented department highlights and responded to Council questions Jack Wayt, Police Chief, presented department highlights and responded to Council questions Norm Angelo, Fire Chief, presented department highlights and responded to Council questions PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minutes limit) Liz Garnholz, resident, spoke regarding the proposed community center and plunge usage Peggy Tyrell, resident, spoke regarding airport issues Recessed at 6 55 P M 7 MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 21, 2001 5 ; PAGE NO 1 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, AUGUST 21, 2001 - 7:00 P.M. CALL TO ORDER - Mayor Gordon at 7:05 P M. INVOCATION - Deputy Clerk Domann PLEDGE OF ALLEGIANCE - Council Member Kelly McDowell PRESENTATIONS- (a) Council Member John Gaines, presented a Commendation to all the participants of the Pacific Southwest Regional Tournament, the hosting families, sponsors and the entire El Segundo Babe Ruth League for an outstanding tournament and successful season (b) Council Member McDowell, presented a Commendation to David W. Reeves, for his invaluable service to the City of El Segundo as a two -term member on the El Segundo Community Cable Advisory Committee. ROLL CALL Mayor Gordon Present Mayor ProTem Jacobs Present Council Member Gaines Present Council Member McDowell Present Council Member Wernick Present PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed Peggy Tyrell, resident, spoke regarding airport issues BROUGHT FORWARD FROM CONSENT CALENDAR, ITEM 3 (c) Request by the American Heart Association for City support and approval to close certain streets between 9.00 a.m. and 1:00 p.m for the 2001 American Heart Walk LA - South Bay /Gateway event to be held on Saturday, September 15, 2001 starting at Mattel corporate headquarters in El Segundo at 10 am MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 21, 2001 PAGE NO 2 54 Lyndi Scott- Strite, American Heart Association, spoke regarding the upcoming American Heart Walk LA — South MOVED by Mayor Gordon, SECONDED by Council Member Gaines to approve the request by the American Heart Association for City support and approval to close certain streets between 9 00 a m and 1.00 p.m. for the 2001 American Heart Walk LA — South Bay /Gateway event to be held on Saturday, September 15, 2001 starting at Mattel corporate headquarters in El Segundo at 10 a.m MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 (d) Request from Jennifer Austin to address City Council regarding placement of a stop sign at the intersection of Illinois and Pine Jennifer Austin, resident, spoke regarding the placement of a stop sign at the intersection of Illinois and Pine Council directed staff to work with Ms Austin to address this issue A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on this Agenda by title only MOVED by Council Member Wernick, SECONDED by Council Member Gaines to read all ordinances and resolutions on this Agenda by title only MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 B. SPECIAL ORDERS OF BUSINESS — None C. UNFINISHED BUSINESS — None D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS — None E. CONSENT AGENDA All Items listed are to be adopted by one motion without discussion and passed unanimously If a call for discussion of an item is made, the item(s) will be considered Individually under the next heading of business Approved Warrant Numbers 2519259- 2519559 on Register No. 21 in total amount of $985,427.38 and Wire Transfers from 07/28/01 to 08/10/01 in the amount of $1,214,979.64 - Approved Warrant Demand Register and Authorize staff to release. Ratify Payroll and Employee Benefit checks; checks released early due to contracts or agreements, emergency disbursements and /or adjustments; and wire transfers 2 Approved City Council meeting minutes of August 7, 2001 BROUGHT FORWARD EARLIER IN MEETING MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 21, 2001 PAGE NO 3 55 4 Approved Amendment No 1 to Agreement No. 2605, providing extension of time to the Memorandum of Understanding (MOU) between the County of Los Angeles and the City of EI Segundo for reimbursement of City's cost for Industrial commercial site visits (Fiscal Impact — Approximately $5,000.00 reimbursement Authorize the City Manager to execute the amendment 5 Second reading and adoption of Ordinance No. 1338 amending El Segundo Municipal Code ( "ESMC ") § 1 -5A -7 authorizing the City Manager, upon City Council direction or as otherwise provided in the ESMC, to execute City contracts 6 Approved the purchase of a replacement Rescue Phone System manufactured by Direct -Link and related equipment to be utilized by the Crisis Negotiation Team and the SWAT Team Cost of the system and equipment not to exceed $22,624.25 Funding from the Asset Forfeiture Account 7 Adopted Resolution No 4221 of the City Council amending Resolution Number 4212, El Segundo's Conflict of Interest Code by adding the Assistant City Attorney as a designated position 8 Approved the proposed revision to the Dispatcher II class specification, intended to increase the pool of qualified applicants for the Lateral Entry Dispatcher Program 9 Approved the Service Agreement No 2917 with the City of Redondo Beach /South Bay Youth Project, to provide counseling services to El Segundo youth and families between September 1, 2001 and June 30, 2002 at a cost of $27,498 Authorize the Mayor to execute the agreement MOVED by Council Member McDowell, SECONDED by Council Member Gaines, to approve consent Items 1, 2, 4, 5, 6, 7, 8, and 9 MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 CALL ITEMS FROM CONSENT AGENDA F. NEW BUSINESS — None G REPORTS - CITY MANAGER - None H. REPORTS — CITY ATTORNEY - None REPORTS - CITY CLERK — None REPORTS - CITY TREASURER - None K. REPORTS - CITY COUNCIL MEMBERS - Council Member McDowell — Reported on downtown sub - committee and the lunch shuttle Council'Member Gaines - None MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 21, 2001 PAGE NO 4 5G Council Member Wernick — Reported on Park Vista Anniversary Celebration Mayor Pro Tem Jacobs — Spoke regarding American Heart Walk and invited community to participate Mayor Gordon — Spoke regarding American Heart Walk and Car Show Congratulated City and staff on budget process. PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250 While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The Council will respond to comments after Public Communications is closed MEMORIALS - Kathleen Schwelger, resident and former City Library employee ADJOURNMENT — at 7 50 p m Cathy Domann, Deputy City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 21, 2001 PAGE NO 5 57 EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING- Consent AGENDA DESCRIPTION: Approval of Agreement with the Regents of the University of California to provide continuing education for Emergency Medical Technicians (EMTs) and defibrillation training Fiscal impact- $26,000. RECOMMENDED COUNCIL ACTION: Approve Services Agreement and authorize the City Manager to execute BACKGROUND & DISCUSSION: In July 1998, the El Segundo Fire Department contracted with Evelyn Riley, M Ed., R N , M.I.0 N., to provide plan implementation of in -house continuing education and to design and provide training to fill specific identified needs In July 2001, Ms Riley was hired by the Regents of the University of California and has continued her contract with the El Segundo Fire Department through her employer Because Ms Riley has continuously provided such excellent educational services to the El Segundo Fire Department for over three (3) years, the Department recommends retaining her services through UCLA In addition, the Fire Department recently purchased four (4) automated external defibrillators (AEDs) which require that personnel who operate this equipment must be trained and certified as Emergency Medical Technician — Defibrillaton (EMT -D) Through the attached proposed Agreement, UCLA agrees to provide one Educator (Evelyn Riley) to the El Segundo Fire Department to conduct continuing education in prehospital and emergency medicine to maintain certification and licensure as EMT -Basic or EMT - Paramedic (collectively referred to as "CE" Programs "), primary education to obtain licensure as an EMT - Defibrillation ( "EMT -D ") Provider, and provide quality improvement services to maintain or enhance the quality of patient care (referred to as "QI Services ") We respectfully request approval and execution of this Agreement. ATTACHED SUPPORTING DOCUMENTS: Agreement between UCLA and the City of El Segundo FISCAL IMPACT: Operating Budget: Yes - $26,000 Amount Requested: $26,000 Account Number: 001 - 400 - 3202 -6223 and 001- 400 - 3203 -6214 Project Phase: WA Appropriation required. NO ORIGINATED: DATE: 8 -22 -01 Norman G ngelo� N I WED;" DATE: ary r i Manager ,17 Q " 5R UCLA And City of El Segundo Services Agreement This Agreement ( "Agreement') is made and entered as of October 1, 2001, by and between The Regents of the University of California, a California corporation, on behalf of the UCLA Medical Center, Center for Prehospital Care ( "UCLA ") and the City of El Segundo ( "City "), on behalf of the El Segundo Fire Department ( "Department') RECITALS A The UCLA Center for Prehospital Care conducts continuing education in prehospital and emergency medicine to maintain certification and ][censure as EMT -Basic or EMT - Paramedic (collectively referred to as "CE Programs "), conducts primary education to obtain licensure as an EMT- Defibrillation ( "EMT -D ") Provider and provides quality improvement services to maintain or enhance the quality of patient care (referred to as "QI Services ") B Department desires to utilize the services to maintain the certifications of their employees and to continue to deliver quality patient care to their community NOW THEREFORE, the Parties hereby agree as follows: 5 r� Article 1 Rights and Responsibilities of UCLA 1 1 Provide a Nurse Educator ( "Educator "). UCLA shall provide one Educator to Department to conduct CE Programs and QI Services The Educator shall be subject to the mutual approval of both UCLA and Department 12 Provide CE Programs. 1 21 Scheduling of CE Programs. CE Programs will be provided on each of three shifts monthly for three hours UCLA shall develop a schedule and submit it to Department for approval The schedule will provide a mimmum of twenty -four (24) hours of continuing education for each Department EMT - Paramedic and twelve (12) hours of continuing education for each Department EMT - Basic, This will provide a Department Paramedic thirty -six (36) hours of continuing education annually if he /she attends all continuing education conducted on their scheduled shifts 122 CE Program Content. All Education Programs shall meet the criteria established by the County of Los Angeles and the State of California to fulfill EMT -Basic and EMT - Paramedic continuing education and re- certification requirements Content shall be developed in collaboration with Department 13 Provide EMT -D Education and Services. 1 31 UCLA shall provide a coordinator ( "Coordnator ") to conduct the services under this section The Coordinator shall be subject to the mutual z- 60 approval of both UCLA and Department The Coordinator will work cooperatively with the Educator 1.32 Prepare EMT -D application materials for Department to submit to the Los Angeles Department of Health Services 1 33 Prepare and submit operational policies for operation of the EMT -D program at Department 134 Provide primary education to EMT - Defibrillation for 60 Department personnel Education will be offered in two sessions on each of six consecutive Department shifts Sessions will accommodate approximately 20 personnel per day and will be organized in the morning from 0800 to 1100 and afternoon from 1300 -1600 1 35 Coordinate with the Los Angeles County Department of Health Services to facilitate Department taking the certifying examination for EMT- Defibnllation Providers 136 Provide competency testing every six months for 60 Department personnel. Education will be offered in two sessions on each of six consecutive Department shifts Sessions will accommodate approximately 20 personnel per day and will be organized in the morning from 0800 to 1100 and afternoon from 1300 -1600 137 Review Department patient care reports, dispatch records, and defibrillator usage downloads where appropriate within 72 hours for each cardiac arrest and generate a report that will be reviewed by the Medical Director 138 Maintain a log that will include usage of the defibnllator, primary education dates, competency test dates, and defibrillator maintenance logs -3- 61 139 Prepare the annual EMT -D report for Department to submit to the Los Angeles Department of Health Services as required policy 412 1 of the Los Angeles County Department of Health Services Prehospital Care Policy Manual and included as Exhibit A. 14 Provide a Medical Director. Provide a medical director to supervise the EMT -D Education and Services, including the quality of instruction and the use of the automatic external defibrillator, as defined by Policy 412 of the Los Angeles County Department of Health Services Prehospital Care Policy Manual and included as Exhibit B ( "Medical Director ") UCLA and Medical Director assume no responsibility for the clinical activities and care provided by any of Department's employees or agents, including but not limited to care relating to the EMT - Defibrillation 1 5 Provide OI Services. 151 On Site Evaluation. The Educator shall nde along and evaluate Department paramedics under field conditions and design and provide education to any specific needs identified 152 Ouality Improvement Activities. The Educator shall develop, coordinate and maintain a quality improvement plan for Department This shall include developing a system to review Department's patient care reports, developing patient care report review cntena, reviewing patient care reports, coordinating quarterly quality improvement meetings, providing direct field observation, developing a plan to evaluate the competency of Department personnel, assisting in fact - finding for specific incidents and -a- ' si attending the Los Angeles County EMS Agency Quality Improvement Committee meetings to gather information regarding updates and changes to policies and/or procedures and reporting to the Department 153 Reports and Records. The Educator will report on QI Activities to the fire chief and QI designee (as identified in Section 3.2) and implement the recommendations under the direction of the QI designee Article 2 Confidentiality 2 1 Definition. For purposes of this Agreement, the term "Confidential Information" shall mean any information disclosed in order to accomplish the work under this Agreement by one party ( "Disclosing Party ") to another party ( "Receiving Party ") that is considered confidential by the Disclosing Party, provided such information is in writing or other tangible form and clearly marked as confidential when disclosed, or is so designated in writing within thirty (30) days of such disclosure The parties agree to disclose only information that is necessary to the work and to send such information directly to the parties noticed in Section 9 of this Agreement 2 2 Obligations of the parties. The Receiving Party agrees, to the extent permitted by law, that Confidential Information shall remain the property of the Disclosing Party and that the Receiving Party shall only use, disclose or distribute Confidential Information within its own organization as is reasonably necessary to carry out the intent of this Agreement For the period of the Agreement and for a -5- 63 period of five (5) years after disclosure, Confidential Information shall not be used or disclosed to others except in furtherance of this Agreement, provided, however, that the foregoing obligation of non -use and non - disclosure shall not apply to any portion of the Confidential Information that. 221 is or shall have been known to the Receiving Party before his/her receipt thereof, 222 is or shall have been disclosed to the Receiving Party by a third party, 223 is or shall have become known to the public other than through the Receiving Party, 224 is independently created by the Receiving Party's personnel who have had no exposure to the Confidential Information, or 225 is required by law, regulation, a court of competent jurisdiction or any rules of civil procedure applicable to any court or administrative proceeding to be disclosed. 2 3 Return of Confidential Information. Upon the expiration or earlier ternnnation of this Agreement, the Receiving Party shall promptly return to the Disclosing Party all Confidential Information of the Disclosing Party and any copies made thereof, whether in written, electronic or any other form -6- b4 Article 3 Rights and Responsibilities of Department 3 1 Provide Space and Equipment. Department shall provide a classroom sufficient to provide quality instruction, audiovisual equipment, and access to department equipment and supplies for the purposes of instruction. 32 Designate OI Person. Department shall designate a person responsible for QI Services in the Department and to receive the information under this agreement and direct the QI Activities ( "QI Designee ") 33 Responsibilitv. Department understands and accepts the responsibility for the clinical activities and care provided by its employees and agents and for the implementation of the QI Services and EMT -D Article 4 Term 41 The term of this Agreement shall commence on October 1, 2001 and be in effect through September 30, 2002 This Agreement shall automatically renew for two additional one -year terms unless terminated earlier as set forth in this Agreement Article 5 Termination 5 1 Termination without Cause. Either party may terminate this Agreement at any time without cause by providing the other party with sixty (60) days notice to the names set forth in Article 9 below 65 52 Termination for Cause. Either party may terminate this Agreement for cause or a material breach by providing the other party with thirty (30) days written notice to the names set forth in Article 9 below If the breaching party fails to cure the breach, the termination shall be effective at the end of the thirty (30) day period Article 6 Payment 61 Compensation for Services. Department agrees to compensate UCLA for the services provided under this Agreement as described in Exhibit C At the end of each one year term, as set forth in Section 4 1, UCLA shall increase the cost of services by 5% per year to cover the cost of living increases Department shall pay this amount due within 30 days of receipt of the invoice from UCLA 62 Payment. Any payment to UCLA made pursuant to this Agreement shall be made by check payable to the Regents of the University of California and mailed to Office Manager UCLA Center for Prehospital Care 924 Westwood Blvd, Suite 720 Los Angeles, CA 90095 -1369 Article 7 Insurance 7 1 The parties agree to obtain and maintain the insurance set forth in Exhibit D -8- 6 (i Article 8 Indemnification 8 1 Department and the City agree to defend, indemnify, and hold harmless UCLA, its officers, employees and agents from and against any and all liability, loss, expense (including reasonable attorneys' fees) or claims for injury or damages ansmg out of the performance of this Agreement, but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of the Department, its officers, employees or agents 82 UCLA agrees to defend, indemnify, and hold harmless Department and the City, its officers, employees and agents from and against any and all liability, loss, expense (including reasonable attorneys' fees) or claims for injury or damages ansing out of the performance of this Agreement, but only in proportion to and to the extent of such liability, loss, expense, attorneys' fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of UCLA, its officers, employees or agents. Article 9 Notice 9 1 Any notice required to be given to any Party is deemed to have been given and to be effective on the date of delivery if delivered in person, or five days after mailing if mailed by first -class certified mail, postage paid, or on the date of the fax confirmation if made by fax, to the respective addresses given below or to any other address as designated in writing to the other Party -9- 67 Ujy Av Todd LeGassick Managing Director UCLA Center for Prehospital Care 924 Westwood Blvd, Suite 720 Los Angeles, CA 90095 -1369 With a copy to UCLA Medical Center Legal Affairs 924 Westwood Blvd, Suite 740 Los Angeles, CA 90095 Department: Kevin Smith, Battalion Chief El Segundo Fire Department 314 Main Street El Segundo, CA 90245 With a copy to Article 10 Use of Name 68 io- 101 Neither Party may use the name of the other, including the name UCLA, the Regents of the University of California, or the University of California, in any advertising, publicity, or otherwise, without the prior written approval of the other Party Article 11 General Terms 11 1 Relationship. This Agreement is not construed as creating a partnership, joint venture, or agency relationship among the Parties The relationship between the parties shall at all times be that of independent contractors 112 Governing Law. This Agreement must be interpreted and construed according to the laws of the State of California 113 Modifications. Any amendments or modifications to this Agreement must be in writing and signed by authorized representatives of both parties 114 Assignment. Neither Party may assign their rights, duties, or obligations under this Agreement, either in whole or in part, without the prior written consent of the other Party 115 Severability. The provisions of this Agreement are severable If any provision of this Agreement is determined to be invalid or unenforceable under any controlling body of law, the invalidity or enforceability does not in any way affect the validity or enforceability of the remaining provisions of this Agreement 116 Waiver. Waiver by any Party of any breach of any provision of this Agreement or warranty or representation shall not be construed as a waiver of any subsequent 69 11 - breach of the same or any other provision The failure to exercise any right in this Agreement shall not operated as a waiver of such right 117 Entire Agreement. This Agreement, and the Exhibits, contain the entire Agreement between the parties with respect to the subject matter of the Agreement and supersedes all prior written or oral agreements with respect to the subject matter in the Agreement 11 8 No Third Party Beneficiaries. None of the provisions contained in this Agreement are intended by the parties, nor shall they be deemed, to confer any benefit on any person not a party to this Agreement [Signature page follows ] ,z- � 0 r IN WITNESS THEREOF, the parties hereto have executed this Agreement on the dates indicated DATE By UCLA, The REGENTS OF THE UNIVERSITY OF CALIFORNIA, a On behalf of UCLA Medical Center Todd L.eGassick Print Name Managing Director Title DATE THE CITY OF SEGUNDO APPROVED ity Attorney ATTEST: City Clerk By On behalf of Department Mary Strenn Print Name City Manager Title _,3. 7 1 ReTefenCe No 4,2.1 Los Angeles County EMS Agency Exhibit A EMT4 DEFIBRILLATION ANNUAL REPORT January 1 through December 31, As required by State law and /or local policies, the following statistical information is being submitted Deadline for submission is March 1 of the subsequent year. 1 No of department responses (ALS and/or BLS) to patients who suffered a cardiac arrest: _ 2. No of patients on whom the automated defibrillator was applied. _ 3 No. of patients who were defibrillated by EMT -IDs: a. Data to compare witnessed vs. unwitnessed occurrences: WITNESSED (seen or heard Initial rhythm UNWITNESSED Ventricular fibrillation by a bystander) Ventricular tachycardia No with Prior to ALS' No with Prior to ALS" bystander CPR regained pulse ❑ bystander CPR regained pulse a did not regain ❑ did not regain pulse pulse No without Prior to ALS*. No. without Prior to ALS': bystander CPR regained pulse bystander CPR regained pulse did not regain 0 did not regain El pulse From witnessed patient group From unwitnessed patient group # discharged from hospital ❑ # discharged from hospital D if available, # discharged if available, # discharged with neuro status unchanged with neuro status unchanged - ❑ from that prior to arrest from that prior to arrest 'If field ALS service available, 'prior to ALS' is prior to paramedic amval. If no field ALS service, "prior to ALS' is prior to arrival at hospital a No of EMT -ID responses to patients sufferino cardiac arrest whose initial rhythm was RHYTHM Initial rhythm Of these, # witnessed Ventricular fibrillation Ventricular tachycardia Asystole Other ia- 7L \\�5y Los Angeles County EMS Agency :-:eterEnCS No 4,2.1 J� Exhibit A EMT-I DSPIERILLATION ANNUAL REPORT January 1 through December 31, As required by State law and /or local policies, the following statistical Information is being submitted. Deadline for submission Is March 1 of the subsequent year. 1 No of department responses (ALS and/or BLS) to patients who suffered a cardiac arrest _ 2. No. of patients on whom the automated defibrillator was applied: _ 3 No of patients who were defibrillated by EMT -IDs: _ a. Data to compare witnessed vs. unwitnessed occurrences: WITNESSED (seen or heard Initial rhythm UNWITNESSED Ventricular fibrillation by a bystander) Ventricular tachycardia No with Prior to ALSO: No with Prior to ALSO: bystander CPR regained pulse a bystander CPR regained pulse ❑ did not regain a a did not regain ❑ pulse pulse No without Prior to ALSO. No. without Prior to ALSO: bystander CPR regained pulse bystander CPR regained pulse did not regain ❑ ❑ did not regain El pulse From witnessed patient group From unwitnessed patient group # discharged from hospital # discharged from hospital a If available, # discharged if available, # discharged vnth neum status unchanged with neuro status unchanged ❑ from that prior to arrest from that prior to arrest 'If field ALS service available. Opnor to ALSO is prior to paramedic arrival. If no field ALS service, "prior to ALSO is prior to arrival at hospital 4 No of EMT -ID responses to oatlents suffenno cardiac arrest whose Initial rhvthm was: RHYTHM Initial rhythm Of these, # witnessed Ventricular fibrillation Ventricular tachycardia Asystole Other 73 -is- DEPARTMENT OF HEALTH SF -WCES Exhibit B COUNTY OF LOS ANGELES SUBJECT: EVT-I OEMBRILLATION REFERENCE NO 412 (ENIT-IO) PROGRAM APPROVAL PURPOSE: To establish policies and procedures for EIAT -1 Defibrillation in Los Angeles County. AUTHORITY: California Code of Regulations, Title 22, Chapter 2, Title 22, Section 100064 POLICY I. EMT -I Defibrillation Program Approval Process A. Agencies employing certified E4IT4s who are seelung approval to implement EMT-1 Defibrillation (ECM -ID) shall submit the following tnformabon to the EMS Agency: 1. A description of the need for use of EMT -I defibrillation within its service area, including the number of cardiac arrest victims to which the agency currently responds 2. A description of the geographic area within which EMT -I defibrillation will be utilized. 3. Identification and location of the proposed equipment and personnel to be trained. 4. The name of a physician licensed in the State of California who is Board certified by the American Board of Emergency Medicine who will accept the responsibility of the EMT -ID Program Medical Director, including medical control under his/her Jurisdiction. 5 The specific type (automatic or semi - automatic) and brand name of defibrillation equipment proposed for use 6 A statement on agency letterhead expressing willingness to abide by all EMS Agency policies and procedures EMT -ID Training Program Requirements A The EMS Agency will approve only those EMT -ID training programs that are provided by agencies employing certified EMT -I personnel 8 Individuals not employed by an approved agency with additional approval to provide EMT -ID shall not be eligible for EMT -ID training or accreditation. EFFECTIVE DATE 8-1 -88 PAGE 1 OF 4 REVISED 9-1 -96 SUPERSEDESS %7 -91 FIPPROVEUG� ` lir Agen -16- XkX J , Medical Dtrectof, EMS Agency 74 SUBJECT. EMT4 DEFIBRILLATION REFERENCE NO 412 (EMT4D) PROGRAM APPROVAL C. Approved agencies shall: 1. Utilize the EMT -ID training program approved or provided by the EMS Agency, including the final written and skulls examinations. 2. Provide a minimum of four and a half (4.5) hours of initial training in EMT -ID (excluding testing). 3. Provide all training equipment necessary to ensure a sound EMT -ID training program (.e., manikins, defibrillation devices, audio-visuals aids, etc.). 4. Utilize automatic or semi - automatic defibrillation devices approved by the EMS Agency. For training purposes, the equipment must include rhythm simulator. 5. Utilize only EMT -ID instructors (currently licensed physician or nurse or currently certified EMT -P) qualified by education and/or experience to teach the curriculum required for EMT -ID. Instructors shall be approved by the EMS Agency utilizing the Principal Instructor Information Form (Ref. No 412.2). Inform the EMS Agency of all course dates, times and locations Abide by the Accreditation Process outlined in Ref No 1022. B. Provide periodic refresher training to individuals accredited as EMT -IDs as needed. 9. Require each individual accredited in EMT -ID to demonstrate defibrillation skill proficiency at intervals not to exceed every sic (6) months This shall be observed and documented by the EMT -ID Program Medical Director or his/her designee (Ref No 1022) 10 Request advanced approval of the EMS Agency, for any of the following Changes in the program medical director designation b. Changes in principal instructor(s) designation Changes in curriculum or course hours d Changes in defibrillation equipment PAGE 2 OF 4 75 _1'7_ SUBJECT EMT4 DEFIBRILLATION REFERENCE NO 412 (EMT4D) PROGRAM APPROVAL III. Records/Data Collection A An EMS Report or other approved EMS form shall be completed for each patient on whom the defibrillator device is applied. In addition to data normally recorded, the report shall include the following information Time of patient collapse 2. Time from collapse to initiation of CPR (bystander) 3. EMT -ID team member name 4 EMT -ID box checked 8 Each EMT -ID response shall be recorded on a tape cassette or PC card which is an integral part of the defibnllator device C The provider agency shall develop procedures for collection, disposition, and retention of all pertinent medical records in accordance with Ref. No 610 Such records shall include the EMS Report or other approved EMS fors and the original tape cassette or PCMCIA card data, for each patient on whom the automatic or semiautomatic defibrillator device is applied. D All relevant records for EMT -ID program monitoring and evaluation shall be available for review by the EMS Agency E Required information shall be reported annually to the local EMS Agency (Ref. No 412.1) These reports are due by March 1 for the previous calendar year IV EMT -ID Program Medical Director Responsibilities The EMT -ID Program Medical Director shalt A Oversee administration of the EMT -ID training program B Ensure utilization of the EMT -ID training program provided by the EMS Agency. C Oversee the coordination of all clinical/field activities related to EMT -1D 0 Recommend individuals for EMT -10 accreditation (Ref No 1022) by signing the EMT -I Defibrillation Course Completion Roster (Ref No 1022 1) PAGE 3OF4 -is- 76 SUBJECT EMT -1 DEFiER1LLATION REFERENCE NO 412 (Ehl ,,740) PROGRAM APPROVAL E. Personally conduct a timely review of 100% of EMT -10 responses. F Ensure that a mechanism is established to provide feedback to EMT -IDs regarding performance G Ensure that periodic refresher training and/or structured clinical experience is conducted as needed, e.g , in -house drills or CE programs. H. Ensure that demonstration of defibrillation skill proficiency is conducted and documented at intervals not to exceed every sox (6) months. Ensure that all aspects of the EMT -ID training program are in compliance with policies and procedures of the EMS Agency. J Notify the EMS Agency in writing of individuals failing to maintain the following: 1 Continuous certification as an EMT -1 2. Defibrillation skill competency at least every six (6) months 3 Acceptable EMT -ID field performance K Provide the EMS Agency with annual reports (Ref No 412.1). L Facilitate coordination between EMT -Ps and EMT -IDs M. Develop procedures for collection and disposition of cassette tapes, PCMCIA cards data, and EMS Report of other approved EMS form CROSS REFERENCE Prehospital Care Policy Manual Ref No 412. 1, EMT4 Defibrillation Annual Report Ref No 412.2, Principal Instructor Information Form Ref No 1022, EMT4 Defibrillation Accreditation Process PAGE 4 OF 4 -19- 77 Exhibit C Fees CE Programs and QI Services EMT -D Education and Services Development of Primary Education Coordination and Competency Testing $15,000 per year ($1,250 per month) $5,000 (one time fee) $6,000 per year 20 - 78 Exhibit D Insurance I. Department Department at its sole cost and expense shall insure its activities in connection with this Agreement by maintaining programs of insurance or self - insurance as follows 1 General Liability Self - Insurance with a Immt of five nulhon dollars ($5,000,000) per occurrence 2 Business Automobile Liability Self- Insurance Program for owned, non - owned, or hired automobiles with a combined single limit of not less than five million dollars ($5,000,000) per occurrence. 3 Professional Medical Self - Insurance Program with limits of five million dollars ($5,000,000) per occurrence 4 Workers' Compensation and Employers Liability Self- Insurance Program covering City's full liability under the Workers' Compensation Insurance and Safety Act of the State of California as amended from time to tune. 5 Such other insurance in such amounts which from time to time may be reasonably required by mutual consent of the parties against other insurable nsks relating to performance It should be expressly understood, however, that the coverages required under Sections 1, 2, and 3 above shall not in any way limit the liability of Department and the City. The coverages referred to under Sections 1 and 2 above shall include UCLA as an insured Such a provision, however, shall apply only in proportion to and to the extent of the negligent acts or omissions of Department and the City, its officers, employees and agents under this Agreement Department and the City, upon execution of this Agreement, shall furnish UCLA with Certificates of Self - Insurance evidencing compliance with all requirements U. UCLA UCLA at its sole cost and expense shall insure its activities in connection with this Agreement by maintaining programs of self - insurance as follows 1 General Liability Self - Insurance with a limit of five mullion dollars ($5,000,000) per occurrence. 2 Business Automobile Liability Self- Insurance Program for owned, non - owned, or hired automobiles with a combined single limit of not less than five million dollars ($5,000,000) per occurrence 3 Professional Medical and Hospital Liability Self - Insurance Program with limits of five million dollars ($5,000,000) per occurrence 21- 79 4 Workers' Compensation and Employers Liability Self- Insurance Program covering University's full liability under the Workers' Compensation Insurance and Safety Act of the State of California as amended from time to time 5 Such other insurance in such amounts which from time to time may be reasonably required by mutual consent of the parties against other insurable risks relating to performance It should be expressly understood, however, that the coverages required under Sections 1, 2, and 3 above shall not in any way limit the liability of UCLA. The coverages referred to under Sections 1 and 2 above shall include Department and City as insureds Such a provision, however, shall apply only in proportion to and to the extent of the negligent acts or omissions of UCLA, its officers, employees and agents under this Agreement UCLA, upon execution of this Agreement, shall furnish Department with Certificates of Self- Insurance evidencing compliance with all requirements III. NOTICE Each party shall provide the other with at least thirty (30) days advance written notice to the names set forth in Article 9 of this Agreement of any changes, modifications or cancellations of the above coverages 22 - 80 EL SEGUNDO CITY COUNCIL MEETING DATE' September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING- Consent Agenda AGENDA DESCRIPTION. Adopt plans and specifications for the Rehabilitation of Sanitary Sewer Pump Station No 6 — Project No PW 01 -12 - Approved Capital Improvement Project — (estimated cost = $397,635.00) RECOMMENDED COUNCIL ACTION Adopt plans and specifications and authorize staff to advertise the protect for receipt of construction bids BACKGROUND AND DISCUSSION The fiscal year 2000 -2001 Capital Improvement Program includes refurbishment of Sewer Pump Station No 6 This station is located below street level at 1465 East Palm Avenue Pump Station No 6 serves the general area bordered by Oak and Elm Avenues, and California and Washington Streets. (Additional discussion continues on the next page ATTACHED SUPPORTING DOCUMENTS- Location map FISCAL IMPACT Capital Improvement Project* Amount Requested. Account Number- Project Phase Appropriation Required. $577,40600 $397,63500 301 -400- 8204 -8468 Adoption of plans and specification No ORIGINATED BY* j , Date (mil 1� C4'.4- Grn= 77��✓ AUG 2.,q ?nnt PW- COUNCIL 091,SEPTEMBER 04 03 (Monday 081271014 GOP M) 9 I ADDITIONAL BACKGROUND AND DISCUSSION: The pump station was built in 1953 and refurbished in 1981 Generally, sewer pump stations need refurbishment every ten (10) years beyond which they become unreliable and need frequent maintenance This station has been repaired several times to keep it operational and is now in need of complete refurbishment, since replacement parts are no longer available The consultant's total estimated cost of the project, including costs for the protect manager and construction contingencies, is $397,635.00 The scope of the proposed refurbishment includes sealing of the wet well, replacement of all pump and electrical controls, and other miscellaneous improvements PW- COUNCILOMEPTEMBER 0403(Monday 08127/014 OOP M) 82 W r. J IAANL100 53130 Nr SOl AMY 3NYONLMrN d0 ALIO Q W 2 1 O.IL 08310 awl U< II ro)ple Yl' I` s as N] YL ANN, Ismaca 6 ¢ 2 a F S NJW11. f < 1 $ °Y Anna UlN i ` N 2 e iM11 0133110 i OYASIL AN 011Oa. It F _ a) I � —� -y XirN � u 1L Mi.w V W J IilY].IY1 �; 1rM as 1x41 SiOLN - -�— a amilr = z i e • .� < W 4 1L 14139 S AYa/11 CLAIM ¢ Y w is < ° MYI SSA w _ .e]Alnue = 0 N n .N.°° Asia SSA A � bw 4.e W 19 a°xn11 wl] iM LL N � ¢ h i a -Ur nu Z Q��`�IIO 11 of Y01 .W.. C i US ANSI.. y ^1 1 as aaN.Y � � .IaaaaYla F 01 Ja W O as —I.,- Try. w1.Y i 1 t 1s Ne°)Y° )M ]lLw if Ve.Alx Y as l)Yw.l �� !S Y]AYIN LL '^ 1X ro1.w14 �l4 eY.l1Y.w a w OY 1]xYnelf < Lllw a ®O aL N .YYtrt Im < w 1' • j1. ^.� Lc � ° �❑ ' 1 J ® if NN)Y °Y )MJY114 O �1 J B1f Neel)XL N : A NMV Au + N O N _ w o 1'1 ® E]E=\� if OY.eN.lf N ' AS w OQoe��a . - :. .e J k 6FOFxeIY �' 7 '• C I °YA'V _ 1s a4eax4) u ( 1L .IwUYIA 1L 1L 11 f1A SP Y ❑ 1A .wel 0 • .I Z < � 1L li]Y]llM m 4q 114 pine raw ll. 41] n.w E`VS \ J i '13G t. w N = `0S n O Of ° : n - a w a U W a) H } o. 2 N 83 EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION Approve formal City Council opposition to S 633 and H R 2107 RECOMMENDED COUNCIL ACTION: Authorize staff to prepare necessary correspondence for the Mayor's signature stating the City Council's opposition to S 633 and H R. 2107 BACKGROUND & DISCUSSION Over the past several months, members of the United States Senate and House of Representatives have introduced various bills concerning airport issues Recently, it has come to the attention of members of Council and staff that S 633 and H R. 2107 are two bills that contain language that could potentially undermine the City of El Segundo's efforts to constrain growth at LAX and promote a truly regional airport plan S 633 is entitled the "Aviation Delay Prevention Act " Section 3, paragraph 3 of the legislation indicates that the Secretary of Transportation may be granted "additional authority to alleviate airport congestion and overscheduling and to expedite construction related to the expansion of airport capacity." While the language does not state (Please see attached page marked "Background and Discussion (con't) ") ATTACHED SUPPORTING DOCUMENTS: Text copies of S 633 and H.R 2107 FISCAL IMPACT: None Operating Budget: Amount Requested. Account Number: Project Phase. Appropriation Required- 8 10 Background and Discussion (con't): specifically what "additional authority" may be granted to the Secretary of Transportation, staff is concerned that it represents the potential to erode local control with respect to airport issues As such, it is logical to conclude that such legislation could ultimately reduce the impact that El Segundo, and all other local and regional entities with concerns related to airport expansion, to affect airport expansion policies Accordingly, staff recommends that the City Council oppose S 633 H R 2107 is entitled "End Gridlock at Our Nation's Critical Airports Act of 2001 " This bill seeks to expedite airport construction and expansion by preempting State laws requiring approval of airport development projects. It is generally considered that this bill has been introduced to benefit current projects related to Chicago- O'Hare International Airport Additionally, it does not appear that the bill, in its current form, would have any impact on the current status of LAWA's efforts to expand LAX However, the bill is problematic because it includes provisions that seek to preempt local control over airport development issues, and it includes language that seeks to enhance the authority of the Secretary of Transportation to circumvent State and local standards "if the project meets the standards established by the Secretary of Transportation " Similar to the reasons stated for opposing S 633, staff recommends that the City Council oppose H.R 2107 because of the potential negative impacts on local control over airport development issues Both bills are likely to be amended significantly prior to the end of the current session of Congress S 633, for example, has already been amended Once the amendments are in print and available, staff will forward that language to the members of the City Council Staff recommends that the City Council authorize staff to prepare the appropriate correspondence for the Mayor's signature stating the City's opposition to S 633 and H R 2107 Page 1 of 5 THIS SEARCH THIS DOCUMENT GO TO Next Hit Forward New Bills Search Prev Hit Back HomePage Hit List Best Sections Hem Doc Contents GPO's P_DF References to this bill in the Link to the Bill 11SummM IFull Display - 8,749 version of this bill Congressional Record & Status file. bytes.[Help] Aviation Delay Prevention Act (Introduced in the Senate) S 633 IS 107th CONGRESS 1st Session MMQ To provide for the review and management of airport congestion, and for other purposes. IN THE SENATE OF THE UNITED STATES March 27, 2001 Mrs HUTCHISON (for herself and Mr ROCKEFELLER) introduced the following bill, which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To provide for the review and management of airport congestion, and for other purposes Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the 'Aviation Delay Prevention Act' SEC. 2. DEFINITIONS. In this Act (1) AIR CARRIER - The tears 'air carver' has the meaning given that term in section 40102(a)(2) of title 49, United States Code. 86 file //C \My Documents \S 633 Airport Congrestion htm 8/23/01 Page 2 of 5 (2) ENPLANEMENT- The term ' enplanement' means the annual number of passenger enplanements, as determined by the Secretary of Transportation, based on the most recent data available (3) LARGE HUB AIRPORT- The term 'large hub airport' has the meaning given that term in section 47134(d)(2) of title 49, United States Code. (4) ON -TIME DEPARTURE - The term 'on-time departure' means with respect to a scheduled passenger flight that the flight is airborne within 20 minutes of the time it is scheduled to depart (5) OVERSCHEDULING- The term'overschedulmg' means the practice by an air carrier or air carriers of scheduling the time for the departure of flights at an airport in excess of the number of flights that the airport can accommodate for departure at that time (6) SECRETARY - The term 'Secretary' means the Secretary of Transportation SEC. 3. FAA STUDY AND REPORT. (a) IN GENERAL- Not later than the date that is 1 year after the date of enactment of this Act, and each year thereafter for 5 years, the Secretary shall complete a review and report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives regarding air carrier overscheduhng at large hub airports. (b) SCOPE OF REVIEW AND REPORT - The review and report described in subsection (a) shall include the following. (1) The hourly departure and arrival capacity at each large hub airport, including variation of capacity based on air traffic control and other factors. (2) The hours when departures and arrivals at each large hub airport are overscheduled and the airport operates above capacity (3) An analysis of the congestion mitigation authority of the Secretary and recommendations for providing the Secretary with additional authority to alleviate airport congestion and overscheduling and to expedite construction related to the expansion of airport capacity SEC. 4. LIMITED EXEMPTION FROM ANTITRUST LAWS. (a) IN GENERAL- Subchapter I of chapter 417 of title 49, United States Code, is amended by adding at the end the following new section 'Sec. 41722. Limited exemption from the antitrust laws '(a) DEFINITION- In this section, the term 'antitrust laws' has the meaning given that term in 87 filed /C \My Documents \S 633 Airport Congrestion htm 8/23/01 Page 3 of 5 the first section of the Clayton Act (15 U S.C. 12) (b) COOPERATIVE SCHEDULING AGREEMENTS- '(1) AUTHORITY - An air carrier may file with the Secretary of Transportation a request for authority for a group of 2 or more air carriers to discuss cooperative scheduling arrangements, if the sole purpose of the discussions is to reach an agreement between the air carriers to reduce overscheduling and flight delays during hours of peak operation and during periods of inclement weather at any large hub airport The Secretary shall grant or deny the request within 30 days after it is received '(2) AGREEMENT - An air carrier shall file with the Secretary of Transportation, for the approval by the Secretary, a true copy of an agreement reached under paragraph (1) (c) APPROVAL BY THE SECRETARY- '(1) IN GENERAL- Within 60 days after receiving a copy of an agreement under subsection (b), the Secretary of Transportation shall approve the agreement and issue an order containing that approval, if the Secretary finds that the agreement— (A) will reduce congestion at the affected airport, (B) will not reduce service to small communities; and (C) is not adverse to the public interest (2) GROUNDS FOR DISAPPROVAL- '(A) The Secretary shall disapprove or revoke approval of an agreement filed under subsection (b), if after review, the Secretary finds that any discussion or agreement entered into as a result of that filing substantially reduces or eliminates competition '(B) Notwithstanding subparagraph (A), the Secretary may approve a request or an agreement filed under subsection (b) if the Secretary finds that -- '(i) the request or agreement is necessary to meet a serious transportation need or to achieve important public benefits, and '(ii) the transportation need cannot be met or the benefits cannot be achieved by reasonably available alternatives that are materially less anticompetitive. (3) NOTICE AND OPPORTUNITY TO RESPOND; HEARINGS- '(A) NOTICE AND OPPORTUNITY TO RESPOND - When a request or an agreement is filed with the Secretary under subsection (b), the Secretary shall give the Attorney General written notice of, and an opportunity to submit written comments about, the filing r $A file //C \My Documents \S 633 Airport Congresnon him 8/23/01 Page 4 of 5 '(13) HEARING- On the initiative of the Secretary, or at the request of the Attorney General, the Secretary may conduct a hearing to decide if a request or agreement filed under subsection (b) should receive or retain approval '(d) EXEMPTION AUTHORIZED - When the Secretary finds that it is required by the public interest, the Secretary, as part of an order issued under subsection (c)(1), shall exempt a person affected by the order from the antitrust laws to the extent necessary to allow the person to proceed with the activities approved in the order '(e) DOT PARTICIPATION - The Secretary shall ensure that the Department is represented at any such meetings authorized under this section.' (b) CONFORMING AMENDMENT- The chapter analysis for chapter 417, of title 49, United States Code, is amended by inserting after the item relating to section 41721 the following new item 41722 Limited exemption from the antitrust laws: SEC. 5. EXPEDITED COORDINATED ENVIRONMENTAL REVIEW PROCESS. The Secretary of Transportation shall develop and implement an expedited coordinated environmental review process for airport capacity- enhancement projects that -- (1) provides for coordination among the Federal, regional, State, and local agencies concerned with the preparation of environmental impact statements or environmental assessments under the National Environmental Policy Act of 1969 (42 U.S.0 4321 et seq.), (2) provides for an expedited and coordinated process in the conduct of environmental and judicial reviews that ensures that the reviews are done concurrently and not consecutively, and (3) provides for a date certain for completing all environmental reviews SEC. 6. CHIEF OPERATING OFFICER. Section 106(r)(2) of title 49, United States Code, is amended to read as follows: '(2) COMPENSATION - The Chief Operating Officer shall be paid at an annual rate of basic pay determined by the Secretary of Transportation before the appointment and without regard to any other provision of law. The Chief Operating Officer shall be subject to the post - employment provisions of section 207 of title 18 as if the positron of Chief Operating Officer were described in section 207(c)(2)(A)(i) of that title'. THIS SEARCH THIS DOCU14ENT GO TO Next Hit Forward New Hills Search file / /C-\My Documents \S 633 Airport Congrestion.htm 8/23/01 Prev Hit Back Homepage Hit List Beat Sections Hel4 Doc Contents Page 5 of 5 • ' file HC \My Documents \S 633 Airport Congrestion.htm 8/23/01 HR 2107 IH 107th CONGRESS 1st Session H. R. 2107 Page 1 of 2 To amend title 49, United States Code, to preempt State laws requiring a certificate of approval or other form of approval prior to the construction or operation of certain airport development projects, and for other purposes IN THE HOUSE OF REPRESENTATIVES June 7, 2001 Mr LIPINSKI introduced the following bill; which was referred to the Committee on Transportation and Infrastructure A BILL To amend title 49, United States Code, to preempt State laws requiring a certificate of approval or other form of approval prior to the construction or operation of certain airport development projects, and for other purposes Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the 'End Gridlock at Our Nation's Critical Airports Act of 2001' SEC. 2. PREEMPTION OF STATE LAWS REQUIRING APPROVAL OF AIRPORT DEVELOPMENT PROJECTS. (a) IN GENERAL- Chapter 401 of title 49, United States Code, is amended by adding at the end the following 'See. 40129. Preemption of State laws requiring approval of airport development projects '(a) IN GENERAL- No State, political subdivision of a State, or political authority of at least 2 States may enact or enforce a law, regulation, or other provision having the force and effect of law that -- '(1) requires a certificate of approval or other form of approval prior to the construction or operation of an airport development project at a covered airport if the project meets the standards established by the Secretary of Transportation under section 47105(b)(3), 91 mhtml file //C \My Documents\HR 2107 - Airport Construction.mht 8/23/01 Page 2 of 2 whether or not the project is the subject of a grant approved under chapter 471, or '(2) prohibits, conditions, or otherwise regulates the direct application for, or receipt or expenditure of, a grant or other funds by the sponsor of a covered airport under chapter 471 for an airport development project at a covered airport if the project meets the standards referred to in paragraph (1) '(b) COVERED AIRPORT DEFINED- In this section, the term'covered airport' means an airport that each year has at least 25 percent of the total annual boardings in the United States ' (b) CONFORMING AMENDMENT- The analysis for such chapter is amended by adding at the end the following new item 40129 Preemption of State laws requiring approval of airport development projects' IXJII. 92 mhtml file //C UMy Documents\HR 2107 - Airport Construction.mht 8/23/01 EL SEGUNDO CITY COUNCIL MEETING DATE- September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING* Consent Agenda AGENDA DESCRIPTION: Request for proposals to retain professional services for various public works projects — (Fiscal Impact — none at this time) RECOMMENDED COUNCIL ACTION. Authorize staff, conditional upon approval by Council, to solicit proposals from firms, which specialize In various disciplines related to public works projects BACKGROUND AND DISCUSSION* The proposed FY 2001 -02 budget Includes new capital improvement and Infrastructure upgrade projects for Implementation The current staffs workload and design expertise limits staff design work to Infrastructure upgrade projects that do not need extensive design work Involving specialized disciplines Staff Is proposing retaining specialty firms for designing projects (enclosed list), and requests City Council approval to solicit proposals City Council approval for awarding these contracts that exceed $10,000 00 will be requested for each individual project after staff review of the received proposals ATTACHED SUPPORTING DOCUMENTS' List of projects proposed for design by specialty firms FISCAL IMPACT None at this time Capital Improvement Project Amount Requested. Account Number: Project Phase- Appropriation Required Various account numbers Solicit Proposals No ORIGINATED BY Date- AUG AUG REVIEWED BY izi / Date, PWSEPTEMBER 04 04 (Monday 08/27/01 4 00 P M) n PUBLIC WORKS PROJECTS (Fiscal Year 2001 -2002) PROJECT NAME BUDGETED AMOUNT Duley Road Improvements $316,000 Police Department HVAC and Replacement $143,000 Library HVAC Replacement $ 88,000 Sewer Pump Stations Refurbishment (Stations 9, 1 and 12) $580,000 Skateboard Park $175,000 Hilltop Park Pool Improvements $136,000 Acacia Park Irrigation System $ 35,500 Camp Eucalyptus $205,000 Swim Stadium Upgrades $480,000 Recreation Park Electrical Upgrades $429,000 Maintenance Facility Generators $ 60,000 City Hall Improvements $666,350 Intersection Renovations $ 75,000 Sewer Main Repair $900,000 Maintenance Facility Clarifier $ 97,750 Fire Station No 1 Office Expansion $ 50,000 Waterman Replacement $600,000 GPS Equipment $ 16,850 Document Imaging Phase II $ 52,500 City Contour Maps $ 35,000 40 Mobile Radios and 6 Base Stations $ 60,000 GIS Technical Advisor $ 80,000 GIS Contract Support Staff $ 20,000 Contract Consultant Project Management $158,000 Contract Public Works Inspector $150,000 Portable Generators $ 79,900 Remote Meter Reading System $ 38,000 Smoke Testing of Storm Drains $ 18,000 Wastewater Foam Cleaning $ 70,000 Maintenance of City Hall HVAC $ 22,100 Maintenance Facility Security System $ 7,050 Engineering Services for Traffic Engineering, $ 60,000 Surveying and Geotechnical Work on a Need Basis PW SEPTEMBER 04 04 (Monday Oa/27/01 4 00 P M ) q4 EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING: Consent AGENDA DESCRIPTION: Request for approval to accept a Bureau of Justice Assistance Local Law Enforcement Block Grant awarding $16,941 in grant funding with a $1,882 cash match from Asset Forfeiture funds RECOMMENDED COUNCIL Approve request BACKGROUND & DISCUSSION. On July 17, 2001, the Police Department received an application outlining eligibility and program requirements for obtaining grant funding from the Bureau of Justice Assistance The grant application has been submitted, as the deadline was August 2, 2001 The funds must be used for one of the seven law enforcement related reasons as listed in the staff report The Police Department is requesting to continue with the grant application process to the U S Bureau of Justice Assistance to receive $16,941 of block grant funds The grant - funding program requires a match of $1,882 to be made by the City This can be made with Asset Forfeiture funds In addition to the match, a public hearing identified as an agenda item and held during a regularly scheduled city council meeting, is required Also, an advisory board consisting of representatives from units of local government (e g , law enforcement, court system, public school system, etc ) will be established and convene once to review the grant application and to offer non - binding recommendations ATTACHED SUPPORTING DOCUMENTS: Staff report by Sergeant Carlos Mendoza FISCAL IMPACT. Operating Budget: None Amount Requested $1,882.00 Account Number: 109 -400- 3105 -6214 Appropriation required: YES — Asset Forfeiture Fund DATE: August 23, 2001 . ief of Police DATE: n, City Manager 8/27/01 1140 AM '715 2 C4!4 /J a 'rj-le�4' INTER - DEPARTMENTAL CORRESPONDENCE August 21, 2001 To Jack Wayt, Chief of Police From Carlos Mendoza, Administrative Sergeant tjov 6 Subject Request approval to accept a Bureau of Justice Assistance Local Law Enforcement Block Grant ( LLEBG) of$16,941 On July 17, 2001, the Police Department received an application outlining eligibility and program requirements for obtaining grant funding from the Bureau of Justice Assistance (BJA) The grant application has been submitted, as the deadline was August 2, 2001 On August 12, 2001, the BJA approved the award for the FY 2001 LLEBG The Police Department is requesting to continue with the grant application process to the U S Bureau of Justice Assistance to receive $16,941 of block grant funds The grant- funding program requires a match of $1,882 to be made by the City This can be made with Asset Forfeiture funds. The funds will be used in accordance with one of the following seven purpose areas listed below 1. Support Law Enforcement Hiring, training, and employing on a continuing basis, additional law enforcement officers and necessary support personnel Paying overtime to currently employed law enforcement officers and necessary support personnel to increase the number of hours worked by such personnel. Procuring equipment, technology, and other material directly related to basic law enforcement functions 2. Enhance Security Measures in and around schools and in and around other facilities or locations that the unit of local government considers special risks for incidents of crime. 3. Establish or Support Drug Courts 4. Enhance the adjudication of cases involving violent offenders, including cases involving violent Juvenile offenders. 5. Establishing a multi - jurisdictional task force, particularly in rural areas, composed of law enforcement officials representing units of local government. This task force must work with federal law enforcement to prevent and control crime. or and law enforcement personnel to control, detect, or investigate crime, or to prosecute criminals. 7. Defraying the cost of indemnification insurance for law enforcement officers. The grant application does list prohibitions on use of funds LLEBG funds are not to be used to purchase, lease rent, or acquire tanks or armored vehicles, fixed -wing aircraft, limousines, real estate, yachts, or any vehicle not used primarily for law enforcement Nor are funds to be used to retain individual consultants or construct new facilities Likewise, federal funds are not to be used to supplant state or local funds Rather, they are to be used to increase the amount of funds that would otherwise be available from state and local RIGIVIIINI In addition to the match amount by the city, an advisory board must be convened, and a public heanng held The advisory board must include a member from each of the following local organizations law enforcement agency, prosecutor's office, court system, school system, and a nonprofit group (e g educational, religious, community) active in crime prevention or drug -use prevention or treatment The board must be designated to make non - binding recommendations for the proposed use of funds received under this program Each Junsdiction shall also hold at least one public hearing regarding the proposed use of funds prior to the obligation of funds Jurisdictions should encourage public attendance and participation I recommend that we seek approval from the City Council to accept the BJA award and propose to use Asset Forfeiture funds to fulfill the match requirement Sincerely, Carlos A Mendoza 97 EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2001 AGENDA ITEM STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Staff to seek City Council direction regarding the acquisition of land for recreational purposes from Thomas Properties RECOMMENDED COUNCIL ACTION: Direct staff to negotiate for the acquisition of land in an area bounded by Manposa Ave , Douglas St, Atwood Way and Nash St. for recreational purposes BACKGROUND & DISCUSSION: In response to the rapidly growing community demand for more recreational areas, staff is seeking City Council direction to acquire a portion of the property currently under the control of Thomas Properties The intended use of the land would be to develop facilities for sports such as soccer, baseball, volleyball, tennis and swimming For references purposes, Thomas Properties has proposed to build a mixed use project known as the El Segundo Corporate Campus on a 46 acre site currently owned by the FedEx Corporation This is one of the last remaining large undeveloped properties that could accommodate play fields requiring a few acres of flat land In addition, this location will allow for lighting fields that will not affect residential areas A Development Agreement is currently being negotiated that will provide the necessary entitlements for the applicant and will be the instrument to accomplish the property acquisition ATTACHED SUPPORTING DOCUMENTS: N/A FISCAL IMPACT: Operating Budget: N/A Amount Requested, N/A Account Number: N/A Project Phase: N/A Appropriation required- N/A OP�61NATED: DATE: k/zelp J Hansen, Director Community, Economic & Development Services DATE: City Manager 13 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE: September 4, 2001 AGENDA HEADING: Reports - City Council A request has been received for Council to send a letter to Senator Debra Bowen on behalf of the Southern California Cities Joint Powers Consortium relating to an amendment to SBX 27 to provide an opportunity for community aggregators to receive direct access priority and the option to undertake direct access with reduced or eliminated exit fees The amendment would assist the Consortium In Implementing a community aggregation program providing better electricity service and rates to constituents RECOMMENDED COUNCIL ACTION Discussion and possible action BACKGROUND & DISCUSSION On August 23, 2001, the Legislative Analyst of the City of Culver City asked all members of the Consortium to approve the sending of a letter on behalf of the Consortium or individually by each member city to Senator Bowen The proposed letter was drafted by Yvonne Hunter, a League of California Cities Policy Analyst It is the concern of the Consortium that the Senate Bill as written may offer a potential for large industrial users to take advantage of the increment and direct access opportunities, thus limiting the opportunities for cities that wish to pursue community aggregation ATTACHED SUPPORTING DOCUMENTS Facsimile and draft letter received from City of Culver City FISCAL IMPACT None Operating Budget Amount Requested Account Number. Project Phase Appropriation Required Yes— No X ORIGINATED DATE: August 29, 2001 -John Gaines, Council Member REVIEWED B DATE Mary S nn, Cdy Manager 14 4� AUG 23 '0. 03 41 °r AXIN /C:Tv ATTORNEY City of Culver City 9770 Culver Boulevard Culver City, California 90232 -0507 Facsimile Cover Sheet To: Company, Phone: Fax: From: Company: Phone: Fax: Date- Pages including this cover page: Comments: Mike Gordon, Mayor; John Gaines, Councilmember City of El Segundo 310.615 -2313 310- 322 -7137 Carol Gross, Vice Mayor City of Culver City 310.836 -1068 310.841 -2866 August 23, 2001 3 Dear Members of Southern California Cities Joint Powers Consortium: Enclosed is a draft of the letter on behalf of the Consortium to Senator Bowen with a request of amending SB 27XX This letter was prepared in collaboration with Yvonne Hunter, League of California Cities Policy Analyst, per the motion at the August Elth meeting We would appreciate you written comments no later than August 29, 2001 If you would like to receive an electronic version of the letter, so that you can put it on your City's letterhead, please let me know via e-mail Please do not hesitate to contact me with any other questions or concerns you may have You can reach me at 310- 253 -6015 or mike ooloskerCdculvercity ora Sincerely, Mike Golosker Legislative Analyst City of Culver City 160 PJG 23 '0: 03.420r An-MIN /C:TY P'TORhE" a 9 C i Wilk' A!� Executive Director `Ibert �enl sep..rveda 5,%d _•C.•v CA 9'2? Cha.rpersor b i(e- ChA'rpenar A )(IQ, Woe' K)ne August 23, 2001 Senator Debra Bowen State Capitol, Room 4040 Sacramento, CA 95814 RE: SB 27XX Direct Access -- Request for Amendments Dear Senator Bowen On behalt of the Southern California Cities Joint Powers Consortium which includes the cities orCarsor„ Culver City, El Segundo, Gardena, Hawtnome, Inglewood, Lawridale, Lomita, Redondo Beach, West Ho lywood, we wish to request an amendment to SB 27XX that would assist us in implementing a community aggregation program to provide better electricity service and rates to our constituents The Consortium was created in 1995, with the purpose of providing an additions: means for members to improve the quality and reduce the cost of utilities to their saretap eoole and businesses b buying P Y g direct from the source We believe such an opportunity for reduced or eliminated exit fees should be given to community aggregators given the service we will be providing to our - constituents who are unlikely to be able to aggregate by themselves We are concerned tnere may be a potential for large industrial users to take advantage of the increment and direct access opportunities, thus limiting the opportunities for cities like ours that wish to pursue community aggregation soutnrm Catdornia Cities Joint Puwvr, Consortium We understand that existing law authorizes the Public Utilities Commission to nbcr lines end direct access We also understand and recognize the importance of ensuring :,.,, t • ; an adequate revenue stream to pay back the bonds sold by the Department of Water Resources (DWR) to pay for its energy purchases for customers of 'r Southern California Edison. and PG &E Finally, we acknowledge the need to emare that the actions of future direct access customers do not Jeopardize that revenue wear o- shift costs to other ratepayers Therefore, we respectfully request tnat you amend SB 27XX to provide an opportunity to community aggregators to receive direct access pnonty and the opuor. to undertake direct access with reduced or eliminated exit fees, to the extent that there is an increment of energy demand not met by power purchased `SUA grrter ,r t;. by DWR Current!y your bill provides this opportunity for residential and small commercial customers We believe that community aggregators should be included as well, We believe such an opportunity for reduced or eliminated exit fees should be given to community aggregators given the service we will be providing to our - constituents who are unlikely to be able to aggregate by themselves We are concerned tnere may be a potential for large industrial users to take advantage of the increment and direct access opportunities, thus limiting the opportunities for cities like ours that wish to pursue community aggregation soutnrm Catdornia Cities Joint Puwvr, Consortium AJG 23 'e: 23 42aN ADMINzCITY ATTORNEY W e would be happy to discuss this issue with you at your convenience Thank you for your time and consideration of our position or. this legislation Sincerely, Carol Gross Chairperson, Southern Ca:ifonaa Cities Joint Power Consortium cc Assembly Member Carol Migden Albert Vera, Executive Director of the Consortium Harold Hoffman, Mayor City of Lawndale Ken Blackwood, Mayor City of Lomita Mike Gordon, Mayor City of El Segundo Don Dear, Mayor City of Gardena Larry Guidi, Mayor City of Hawthorne Roosevelt Dom, Mayor City of Inglewood John Parsons, Councilmember City of Redondo Beach Sal Guierriello, Councilmember City of West Hollywood Manual Onta:, Councilmember City of Carson Howard Choi, Los Angeles County Energy Manager Yvonne Hunter, League of California Cities 1'1?