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2004 APR 06 CC PACKETAGENDA 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. During the first Public Communications portion of the Agenda, comments are limited to those items appearing on the Agenda. During the second Public Communications portion of the Agenda, comments may be made regarding any matter within the jurisdiction of the City Council. 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 second Public Communications portion of 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.m. the prior Tuesday). Other members of the public may comment on these items only during this second Public Communications portion of the Agenda. 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, APRIL 6, 2004 — 5:00 P.M. Next Resolution #4370 Next Ordinance #1376 5:00 P.M. 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 Section §54960, et sue.) for the purposes of conferring with the City's Real Property Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators; as follows: 0 1 CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(a)) — 3 matters 1. Bressi v. City of El Segundo, LASC No. BC288292 2. Bressi v. City of El Segundo, LASC No. BC288293 3. In Re Los Angeles County Municipal Storm Water Permit Litigation, Lead Case No. BS 080548, Related Cases: BS 080753, BS 080758, BS 080791, BS 080792 and BS 080807. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code §54956.9(b): -0- potential case (no further public statement is required at this time); Initiation of litigation pursuant to Government Code §54956.9(c): -5- matters DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957) — 0 matter CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6) — 0 matter CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) -4 matters Real Property Negotiator: Mary Strenn, City Manager Potential purchase price for four (4) properties for the Douglas Street extension project: APN Nos. 1. 4138 - 011 -019 2. 4138 - 010 -010 3. 4138 - 011 -006 4. 4138- 011 -036 SPECIAL MATTERS - None 0 2 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. During the first Public Communications portion of the Agenda, comments are limited to those items appearing on the Agenda. During the second Public Communications portion of the Agenda, comments may be made regarding any matter within the jurisdiction of the City Council. 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 second Public Communications portion of 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.m. the prior Tuesday). Other members of the public may comment on these items only during this second Public Communications portion of the Agenda. 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, APRIL 6, 2004 — 7:00 P.M. Next Resolution # 4370 Next Ordinance # 1376 7:00 P.M. SESSION CALL TO ORDER INVOCATION — (Interim) Pastor Dino Tumbuan of Saint John's Lutheran Church PLEDGE OF ALLEGIANCE — Councilmember Nancy Wernick PRESENTATIONS — (a) Presentation presented to El Segundo Police Officer Mike Gill, Medal of Valor recipient, proclaiming April 29, 2004 as Medal of Valor Day in El Segundo. 0 3 (b) Proclamation presented to Tree Musketeers proclaiming April 24, 2004 as Earth Day in El Segundo. (c) Presentation by Nancy Beard, Secretary- Treasurer of the California Parks and Recreation Society to the City for producing the award - winning "Inside El Segundo Recreation & Parks" brochure. (d) Presentation by Tina Pasco, Executive Director of the Los Angeles County Chapter of MADD (Mothers Against Drunk Drivers) to the City and to El Segundo Police Officer Aaron Corkins, for keeping our streets safe from impaired drivers. ROLL CALL 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. A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title Recommendation — Approval. B. SPECIAL ORDERS OF BUSINESS Consideration and possible action (Public Hearing) on the appeal of the Planning Commission's decision to approve Environmental Assessment No. 638 and Subdivision No. 04 -1 for a stay of a previously approved Vesting Tentative Tract Map No. 53570. The Vesting Tentative Tract Map is for a 26 -lot subdivision in the Corporate Campus Specific Plan area, located at 700 -800 North Nash Street. Applicant: TPG -EI Segundo Partners, LLC. Property Owner: Federal Express Corporation. Appellant: Kilroy Realty Corporation and Citizens Against Gridlock in El Segundo (CAGES). Recommendation — (1) Open Public Hearing; (2) Discussion; (3) Adopt Resolution upholding approval of Environmental Assessment No. 638 and Subdivision No. 04 -1; (4) Alternatively, discuss and take other possible action related to this item. MW C. UNFINISHED BUSINESS 2. Consideration and possible action to give Premiere Golf Inc. Centers, LLC notice of the City's intention to terminate the current golf course management and concession agreements at the Lakes at El Segundo (The Lakes estimated effective date is May 2004); authorize the Mayor to execute month -to -month management and concession agreements with American Golf Corporation, LLC (AGC, LLC), including granting AGC, LLC an exclusive right to negotiate a lease or long term management agreement with AGC, LLC for the Lakes at El Segundo; approve refinancing the City of El Segundo's portion of the 1992 Association of Bay Area Governments (ABAG) Certificates of Participation (Bonds /COP) for the golf course; appropriate $2,500 for additional staff time during the transition; authorize the City Manager to execute agreement in a form approved by the City Attorney with Fieldman, Rolapp and Associates as financial advisors and with Burke, Williams, and Sorensen as the Bond and Disclosure Counsel on refinancing the 1992 ABAG Certificates of Participation; and authorize the City's auditors to assist in the management transition by performing an audit of the existing golf course financial statements. (Fiscal Impact $211,500). Recommendation — (1) Authorize the City Manager to give Premiere Golf Inc. Centers, LLC notice of the City's intention to terminate the current contracts for management and concession services based upon the date that AGC, LLC will be ready to operate the golf course; (2) Authorize the Mayor to execute month -to -month management and concession agreements with AGC, LLC to manage the Lakes at El Segundo, including granting AGC, LLC an exclusive right to negotiate a lease or long -term management agreement of the Lakes with the City of El Segundo; (3) Authorize staff to proceed with refinancing the 1992 ABAG Golf Course COP; (4) Appropriate $2,500 for additional staff time towards facilitating the management transition; (5) Authorize the City Manager to execute agreements in a form approved by the City Attorney with Fieldman, Rolapp and Associates as financial advisors and with Burke, Williams, and Sorensen as the Bond and Disclosure Counsel on refinancing the 1992 ABAG Certificates of Participation; (6) Authorize City's auditors to perform an audit of the existing golf course financial statements; (7) Alternatively, discuss and take other action related to this item. 5 o J D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS 3. Consideration and possible action regarding age requirement for Park Vista Senior Housing applicant, be changed from 55 to 62 years of age to be eligible. (Fiscal Impact — None). Recommendation — (1) Approve recommendation from Park Vista Senior Housing Corporation Board to change age requirement at Park Vista from 55 to 62 years of age; (2) Allow all residents currently on the waiting list for Park Vista Senior Housing as of April 6, 2004 be grandfathered in when space is available, even if they are not 62 years of age as of April 6, 2004; (3) Alternatively, discuss and take other action related to this item. 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. 4. Warrant Numbers 2539592 to 2539960 on Register No. 12 in the total amount of $1,433,946.49 and Wire Transfers from 3/5/2004 through 3/25/2004 in the total amount of $1,057,941.19. Recommendation — Approve Warrant Demand Register and authorize staff to release. Ratify: Payroll and Employee Benefit checks; checks released early due to contracts or agreement; emergency disbursements and /or adjustments; and wire transfers. 5. City Council Meeting Minutes of March 16, 2004. Recommendation — Approval. 6. Consideration and possible action regarding a report on the power industry and its impact on City's Utility User Tax revenues from the El Segundo Power Plant located at 301 Vista Del Mar. Recommendation — (1) Receive and file report on power industry and its impact in El Segundo's revenues; (2) Alternatively, discuss and take other action related to this item. 7. Consideration and possible action regarding an amendment to the El Segundo Municipal Code regarding uniform newsrack locations and newspaper placement. Recommendation — (1) Second reading by title only and adoption of Ordinance; (2) Alternatively, discuss and take other action related to this item. 6 0 G 8. Consideration and possible action to award a contract for core drilling sidewalk for the installation of Heritage Stones along Main Street and Grand Avenue in the Downtown area - Project No. PW 04 -03 — Approved Capital Improvement Program (Contract amount $43,812). Recommendation — (1) Award contract to the lowest responsible bidder, Malibu Pacific Tennis Courts, Inc.; (2) Authorize the City Manager to execute the construction contract on behalf of the City; (3) Alternatively, discuss and take other action related to this item. 9. Consideration and possible action regarding a request for City Council to approve Public Works Project No. PW 04 -05 for emergency repairs with Advanced Fuel Filtration Systems, Inc. for repairs to the City's Maintenance Facility at 150 Illinois Street on the underground fuel storage system. (Fiscal Impact $9,645) Recommendation — (1) Adopt resolution declaring emergency in accordance with Public Contracts Code Section 20168 by 4/5s vote; (2) Approve contract with Advanced Fuel Filtration Systems, Inc.; (3) Authorize the City Manager to sign the contract on the City's behalf; (4) Alternatively, discuss and take other action related to this item. 10. Consideration and Possible action to approve a License Agreement with the U.S. Air Force Base 615 Air Base Group for. installation of a communication conduit across El Segundo Boulevard, between Aviation Boulevard and Douglas Street. Recommendation — (1) Approve the License Agreement; (2) Authorize the City Manager to execute the agreement on behalf of the City; (3) Alternatively, discuss and take other action related to this item. 11. Consideration and possible action to authorize an agreement with Metalore, Inc., 750 South Douglas Street, for acquisition of real property for the Douglas Street Gap Closure /Railroad Grade Separation Project — Approved Capital Improvement Project — (Estimated Cost $905,400). Recommendation — (1) Authorize the City Manager to execute an agreement with Metalore, Inc., prepared by the City Attorney's office on behalf of the City; (2) Alternatively, discuss and take other action related to this item. 12. Consideration and possible action regarding the submission of grant proposals to the Department of Homeland Security for the FY 2004 Federal Budget Year, for the purchase of Fire Department equipment. (Fiscal Impact — None) Recommendation — (1) Receive and file report; (2) Authorize the Fire Chief and /or designee (Emergency Services Coordinator) to act as the authorized agent for the electronic grant submissions; (3) Alternatively, discuss and take other action related to this item. 7 {) r CALL ITEMS FROM CONSENT AGENDA F. NEW BUSINESS 13. Consideration and possible action on a notification of intent to sell 0.5 acres of property at 616 West Imperial Avenue by the El Segundo Unified School District ( ESUSC) pursuant to California Government Code Section 54222 and California Education Code Sections 17464(a) and 65402(c). Recommendation — (1) Consider the notification of intent by ESUSD to sell property at 616 West Imperial and whether the City desires to purchase such property; (2) Determine that the proposed property disposition is in conformity with the General Plan pursuant to California Government Code Section 65402(c); (3) Alternatively, discuss and take other action related to this item. 14. Consideration and possible action regarding a request by the Chamber of Commerce and Mark Neumann, the developer of the parking garage project, to name the alley "Marketplace" between Main Street and Richmond Street from Grand Avenue to Pine Avenue. Recommendation — (1) Approve the request to name the alley, "Marketplace "; (2) Authorize staff to erect four street name signs; (3) Alternatively, discuss and take other action related to this item. 15. Consideration and possible action to adopt three (3) resolutions finding and determining that the public interest, convenience and necessity require the acquisition of the properties at 2221 Park Place, 601 Hawaii Street, and 810 South Douglas Street for public purposes, and authorizing the commencement of eminent domain proceedings to acquire interests in such real properties for the Douglas Street Gap Closure /Railroad Grade Separation Project. (Estimated Cost $455,600). Recommendation — (1) Adopt the attached three (3) Resolutions by four -fifths (4/5s) vote of City Council; (2) Alternatively, discuss and take other action related to this item. 16. Consideration and possible action regarding City co- sponsorship and the waiver of fees for a charitable event known as "Keep LA Running ", a 5K Walk/Run and 10K Run to be held on July 11, 2004 from 8:00 a.m. until noon. Recommendation — (1) Review City co- sponsorship of the non - profit event, "Keep LA running "; (2) Consider waiving City fees in the amount of $8,874; (3) Alternatively, discuss and take other action related to this item. 8 C) 8 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 — Council Member Gaines — Council Member Wernick — Mayor Pro Tern Jacobs — Mayor Gordon — 17. Consideration and possible action to approve a resolution in support of the "Los Angeles County Public Safety and Homeland Security' /2 Cent Sales Tax Initiative" sponsored by Los Angeles County Sheriff Leroy D. Baca. Recommendation — (1) Approve attached resolution supporting the "Los Angeles County Public Safety and Homeland Security '/z Cent Sales Tax Initiative; (2) Alternatively, discuss and take other action related to this item. 18. Consideration and possible action regarding the request by Tree Musketeers to declare the California Sycamore, the official City of El Segundo tree. Recommendation — (1) Consider request by the Tree Musketeers to declare the California Sycamore, the official City of El Segundo tree; (2) Alternatively, discuss and take other action related to this item. PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have receive 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. 0 9 MEMORIALS — CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, at sue.) for the purposes of conferring with the City's Real Property Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) ADJOURNMENT POSTED: DATE: TIME: NAME: 10 0 i(I EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: Special Orders of Business- Public Hearing AGENDA DESCRIPTION: Consideration and possible action (Public Hearing) on the appeal of the Planning Commission's decision to approve Environmental Assessment No. 638 and Subdivision No. 04 -1 for a stay of a previously approved Vesting Tentative Tract Map No. 53570. The Vesting Tentative Tract Map is for a 26 -lot subdivision in the Corporate Campus Specific Plan area, located at 700 -800 North Nash Street. Applicant: TPG -E1 Segundo Partners, LLC. Property Owner: Federal Express Corporation. Appellant: Kilroy Realty Corporation and Citizens Against Gridlock in El Segundo (CAGES). RECOMMENDED COUNCIL ACTION: 1. Open Public Hearing; 2. Discussion; 3. Adopt Resolution upholding approval of Environmental Assessment No. 638 and Subdivision No. 04 -1; or 4. Alternatively discuss and take other possible action related to this item. BACKGROUND & DISCUSSION: The Planning Commission approved a stay of Vesting Tentative Tract Map No. 53570 at its March 11, 2004 meeting. On March 22, 2004, the Kilroy Realty Corporation and CAGES filed an appeal. In its appeal letter, the appellants contend that: 1) the Vesting Tentative Tract Map expired on or before the Commission's approval of the stay on March 11, 2004; 2) the applicant did not submit a complete application for an extension of the Tract Map before the Tract Map expired; 3) the referendum vote on June 18, 2002 did not extend the deadlines for the Tract Map; and 4) the Tract Map expired before amendments to the ESMC allowing a stay of a Tract Map because of pending litigation became effective on March 3, 2004. (continued on next page...) ATTACHED SUPPORTING DOCUMENTS: 1. Draft Resolution 2. Appeal letter dated March 22, 2004 3. Planning Commission Staff Report dated March 11, 2004 FISCAL IMPACT: None Operating Budget: N/A Amount Requested: N/A Account Number: N/A Project Phase: N/A Appropriations Required: Y ORIGINATED BY: DATE: r J J /Zzi'/a`f Ja es 4. Hansen, Director of Community, Economic and Development Services DATE: Mary �l J ,I RESOLUTION NO. A RESOLUTION OF THE EL SEGUNDO CITY COUNCIL UPHOLDING THE PLANNING COMMISSION'S DECISION, THEREBY APPROVING ENVIRONMENTAL ASSESSMENT NO. 638 AND SUBDIVISION NO. 04- 1 FOR A STAY OF VESTING TENTATIVE TRACT MAP NO. 53570 FOR PROPERTY AT 700 -800 NORTH NASH STREET The City Council of the City of El Segundo does resolve as follows: SECTION 1: The Council finds and declares that: A. On February 3, 2004, TPG -El Segundo Partners, LLC submitted an application to toll the time that Vesting Tentative Tract Map No. 53570 ( "Map ") would remain effective. The application sought a stay for the time period during the pendency of ongoing litigation involving the Map until a final judgment is entered or five years, whichever is sooner. The application was reviewed by City's Department of Community, Economic and Development Services for, in part, consistency with the General Plan and conformity with the El Segundo Municipal Code ( "ESMC "); B. In addition, the City reviewed the project's environmental impacts under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA "), the regulations promulgated thereunder (14 Cal. Code of Regulations § §15000, et seq., the "CEQA Guidelines "), and the City's Environmental Guidelines (City Council Resolution No. 3805, adopted March 16, 1993); C. The Department of Community, Economic and Development Services completed its review and scheduled a public hearing regarding the application before the Planning Commission for March 11, 2004; D. On March 11, 2004, the Planning Commission held a public hearing to receive public testimony and other evidence regarding the application including, without limitation, information provided to the Planning Commission by TPG -EI Segundo Partners, LLC; and adopted Resolution No. 2563 approving Environmental Assessment No. 638 and Subdivision No. 04 -1; E. The Commission considered the information provided by City staff, public testimony, and TPG -E1 Segundo Partners, LLC representatives. Thereafter, the Commission adopted Resolution No. 2563 approving the stay of the Map. Resolution No. 2563, and its findings, was adopted based upon the evidence presented to the Commission at its March 11, 2004 hearing including, without limitation, the staff reports submitted by the Department of Community, Economic and Development Services; 1 014 F. On March 22, 2004, the City received a written appeal of the March 11, 2004 Planning Commission decision submitted on behalf of Kilroy Realty Corporation and Citizens Against Gridlock in El Segundo ( "CAGES "); G. On April 6, 2004, the City Council held a public hearing to receive public testimony and other evidence regarding the appeal and TPG -EI Segundo Partners, LLC's application including, without limitation information provided to the Planning Commission by TPG -El Segundo Partners, LLC; and H. The City Council considered the information provided by City Staff, public testimony, and TPG -El Segundo Partners, LLC representatives. This Resolution and its findings, are made based upon the evidence and testimony presented to the Council at its April 6, 2004 hearing including, without limitation, the staff report submitted by the Department of Community, Economic and Development Services. SECTION 2: Factual Findings. The Council finds that the following facts exist: A. The approved project is for the creation of 26 separate parcels on a 46.53 - acre site at 700 -800 N. Nash St. in the Corporate Campus Specific Plan Area; B. There have been no changes to the project scope and insignificant minor changes in the project setting; C. The applicant proposes to extend the time period within which it may develop a previously approved project as set forth in Ordinance No. 1345 and Resolution No. 4241 adopted by the City Council on January 2, 2002. The application was made in conformance with the ESMC; D. A special election was held on June 18, 2002 following a referendum campaign against Ordinance No. 1345 and Resolution No. 4241. The majority of voters approved Ordinance No. 1345 and Resolution No. 4241; E. The City Council certified the results of the June 18, 2002 election at its regular meeting held on July 2, 2002; F. Elections Code §§ 9217 and 9243 establish the effective date of Ordinance No. 1345 and Resolution No. 4241 as July 12, 2002; G. CAGES and the Kilroy Realty Corporation filed a lawsuit involving the approval of the Vesting Tentative Map and other entitlements on January 31, 2002 (see Citizens Against Gridlock in El Segundo et al. v. City of El Segundo, et al., LASC Case No. BC267404); H. This case is currently pending in the California Court of Appeals; 2 015 The City Council adopted Resolution No. 4368 on March 16, 2004 granting a one -year extension of Vesting Tentative Map No. 53570 (Environmental Assessment No. 632 and Subdivision No. 03 -8); J. Unless stayed, Vesting Tentative Map No. 53570 will expire on July 12, 2005. SECTION 3: Environmental Assessment. The Council finds that Environmental Assessment No. 638, Subdivision No. 04 -1 and Vesting Tentative Tract Map No. 53570 were previously analyzed for its environmental impacts and a Final Environmental Impact Report was certified pursuant to CEQA § 15090. This application for a stay does not affect any of the findings in the FEIR as the stay would result in any new significant impacts or significant increase to existing impacts with respect to the environmental impacts analyzed under the original project. SECTION 4: Notice of Determination. The City Manager, or designee, is directed to file a Notice of Determination in accordance with Pub. Res. Code §§ 21152, 21167(f); 14 CCR § 15062; and any other applicable law. SECTION 5: Approvals. Subject to the conditions listed on the attached Exhibit "A," which are incorporated into this Resolution by reference, and in accordance with ESMC § 14 -1 -12, the City Council upholds the Planning Commission's approval of Environmental Assessment No. 638 and Subdivision No. 04 -1. The project is a benefit to the community for the same reasons that it was found to be a benefit to the community when the City Council approved it on January 2, 2002. The findings set forth in Ordinance No. 1345 and Resolution No. 4241, as applicable to this Resolution, are incorporated by reference as if fully set forth. The applicant has diligently defended the legal action filed by third parties against the project and appears to intend to continue forward in earnest with respect to the project. SECTION 6: This Resolution will remain effective unless superseded by a subsequent resolution. SECTION 7: The City Clerk is directed to mail a copy of this Resolution to TPG -El Segundo Partners, LLC and to any other person requesting a copy. SECTION 8: This Resolution is the City Council's final decision and will become effective immediately upon adoption. PASSED AND ADOPTED this 6th day of April 2004. Mike Gordon, Mayor 3 016 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, hereby certify that the whole number of members of the City Council of the City is five; that the foregoing Resolution No. _ was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the 6th day of April 2004, and the same was so passed and adopted by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: NOT PARTICIPATING: ATTEST: Cindy Mortesen, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney By: Karl H. Berger, Assistant City Attorney P: \Planning & Building Safety\ PROJECTS\ 626- 650 \Ea - 638 \EA- 638.reso.cc.doc 4 017 CITY COUNCIL RESOLUTION NO. Exhibit A CONDITIONS OF APPROVAL In addition to all applicable provisions of the El Segundo Municipal Code ( "ESMC "), TPG -El Segundo Partners, LLC agrees to comply with the following provisions as conditions for the City of El Segundo's approval of Environmental Assessment No. 638 and Subdivision No. 04 -1 ( "Project Conditions "): Miscellaneous Conditions 1. The stay of Vesting Tentative Tract Map No. 53570 is for the time period measured from the effective date of the Map through the time a final judgment is entered in the case captioned Citizens Against Gridlock in El Segundo et al. v. City of El Segundo, et al., LASC Case No. BC267404, or as captioned upon appeal, or the case is dismissed by the petitioner, or five years, whichever, occurs first. 2. Upon termination of the stay, Vesting Tentative Tract Map No. 53570 will remain effective until it expires in accordance with the time remaining from its original extension. 3. The developer must develop the propetty in accordance with the applicable provisions of previously approved City Council Resolution No. 4241, Ordinance No. 1345, and Resolution No. 4368. 4, TPG -El Segundo Partners, LLC agrees to indemnify and hold the City harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising from the City's approval of Environmental Assessment No. 638 and Subdivision No. 04 -1. Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the City approval of Environmental Assessment No. 638 and Subdivision No. 04 -1, TPG - EI Segundo Partners, LLC agrees to defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of this section "the City" includes the City of El Segundo's elected officials, appointed officials, officers, and employees. By signing this document, TPG -EI Segundo Partners, LLC certifies that it has read, understood, and agrees to the Project Conditions listed in this document. TPG -EI Segundo Partners, LLC Applicant {If Corporation or similar entity, need two officer signatures or evidence that one signature binds the company) 5 018 MOSKOWITZ, BRESTOFF, WINSTON &' BLINDERMAN LLP* 1880 Century Park East, Suite 900, Los Angeles, California 90067 TEL: 310/785 -0550 FAY: 310/785 -0880 March 22, 2004 VIA MESSENGER Ms. Cindy Mortesen, City Clerk Mr. Jim Hansen, Director of Community, Economic and Development Services CITY OF EL SEGUNDO 350 Main Street El Segundo CA 90245 Re: Appeal of March 11, 2004 Planning Commission decision EA 638 & Subdivision 04 -1 (VTM 53570) Dear Ms. Mortesen: and Mr. Hansen: Barbara S. Blinderran Nelson E. Brestotp Joel S. Moskowitz Dennis A. Winston Please accept this letter as an appeal by Kilroy Realty Corp. and Citizens Against Gridlock in El Segundo ( "CAGES ") of the El Segundo Planning Commission's decision of March 11, 2004, wherein the Commission granted to applicant, TPG -El Segundo Partners LLC, a one -year stay of previously approved Vesting Tentative Tract Map No. 53570 to allow pending litigation to be resolved involving the property located at 700 -800 N. Nash Street. The bases for the appeal are the following: The Tract Map had already expired before the Commission voted to approve the stay, and the City cannot retroactively extend a map that has expired. Further, the burden is on the applicant to file an application for extension of a Tract Map in a timely manner; however, the application for the extension was not submitted in its completed form until after the Tract Map had expired. Additionally, the referendum vote of June 18, 2002 did not extend the administrative deadlines for the Map; the approval of the Map was an administrative act that was not subject to approval or rejection by referendum. Finally, the amendment of the El Segundo Municipal Code to allow a stay of a Map while litigation is pending did not become effective until March 3, 2004. Vesting Tentative Tract Map 53570 had already expired by the time the Municipal Code change became effective. A LIMITED LIABILITY PARTNERSXIP INLLODINC BRESTOFF & WINSTON, A PROFESSIONAL LAw CORPORATION 0 10 Ms. Cindy Mortesen, City Clerk Mr. Jim Hansen, Director of Community, Economic and Development Services CITY OF EL SEGUNDO Re: Appeal of March 11, 2004 Planning Commission decision EA 638 & Subdivision 04 -1 (VTM 53570) Page 2 The filing fee check in the amount of $460.00 is enclosed. Very truly yours, Dennis Winston of Moskowitz, Brestoff, Winston & Blinderman LLP DAW:ak 020 CITY OF EL SEGUNDO PLANNING COMMISSION STAFF REPORT PUBLIC HEARING: SUBJECT: APPLICANT: PROPERTY OWNERS: REQUEST: PROPERTY INVOLVED: Introduction March 11, 2004 Environmental Assessment No. 638, Subdivision No. 04 -1 and Vesting Tentative Tract Map No. 53570 TPG -EI Segundo Partners, LLC Federal Express Corporation Stay of a Tentative Tract Map for a 26 -lot subdivision for the duration of time that the project is in litigation. 700 -800 N. Nash Street This is an application filed by TPG -El Segundo Partners, LLC requesting a stay of Vesting Tentative Tract Map No. 53570 for a subdivision that is a part of the Corporate Campus Specific Plan mixed -use development. The application was filed pursuant to El Segundo Municipal Code ( "ESMC ") § 14 -1 -12. If granted, the stay would toll the time limitations on the Vesting Tentative Tract Map during the pendency of ongoing litigation until a final judgment is entered or five years, whichever is sooner. The Vesting Tentative Tract Map became effective on July 12, 2002 after being upheld during a special election prompted by a referendum campaign. The Planning Commission granted a one -year extension on February 12, 2004. No changes in the underlying project are proposed with this stay request. Recommendation Planning staff recommends that the Planning Commission review the facts as contained within this report, and adopt Resolution No. 2563 (Exhibit A) approving Environmental Assessment No. 638 and Subdivision No. 04 -1 (Vesting Tentative Tract Map No. 53570). 021 III. Background The project approved by the Vesting Tentative Tract Map is a twenty -six parcel subdivision for a mixed -use development. That project was considered by the City Council on January 2, 2002 when it adopted Ordinance No. 1345 and Resolution No. 4241. These documents were to have become effective on February 2, 2002, but a referendum campaign suspended the effective date of the approvals until July 12, 2002 (following a special election). On December 1, 2003, the applicant filed a request for an extension of the Map, which the Planning Commission granted on February 12, 2004. Kilroy Realty Corporation and Citizens Against Gridlock in El Segundo ( "CAGES ") filed an appeal of the Planning Commission's decision on February 23, 2004. The City Council is scheduled to conduct a public hearing regarding the appeal on March 16, 2004. Staff reports prepared for the November 15, 2001 and February 12, 2004 Planning Commission hearings on the original project and the one year extension of the Vesting Tentative Tract Map provide detailed background of the approvals and other documents which have been developed to implement the underlying project (see Exhibit B and Exhibit C). Exhibit D (City Council Resolution 4241) contains the original conditions of approval for the subdivision and Exhibit E (Planning Commission Resolution No. 2559) contains the conditions of the approval of the one -year extension of the Vesting Tentative Tract Map. IV. Analysis ESMC § 14 -1 -12 allows the Planning Commission to grant a stay on a map for, among other things, pending litigation. The applicant filed its stay request in light of the pending litigation and appeals involving the Vesting Tentative Tract Map No. 53570 (see Citizens Against Gridlock in El Segundo et al. v. City of El Segundo, et al., LASC Case No. BC267404; filed January 31, 2002). Granting the stay would cause the Vesting Tentative Tract Map to continue being effective until a final judgment is entered in the litigation or after five years, which ever occurs first. The original approval of the Vesting Tentative Tract Map was designed to "lock in" the policies and regulations in effect at the time of the project approval. Approving a stay of the Vesting Tentative Tract Map is a discretionary action by the Planning Commission. Accordingly, the City may condition the stay or modify the existing conditions of approval (Exhibit A) as desired. Staff recommends that the Commission approve the requested stay based upon the same general reasons that staff recommended approval of the original project. The City is receiving many benefits from the project: additional jobs and revenues will be created by the project; the project is consistent and complimentary to the surrounding land uses and the goals of the General Plan; and it will provide for public facilities (fire station and recreation fields) that are needed in the community. Additionally, staff believes that the applicant has 2 022 good faith to advance the project but understands the problems with gaining the financing necessary to start construction of the project until the litigation is finally resolved. Finally, given the litigation was initiated by third parties and not the applicant, and the community supports the project (based upon the results of the referendum), it seems prudent and fair to grant the applicant's request for the stay. Inter - Departmental Comments The project application and plans were not circulated to inter - Departmental staff because no changes are proposed in the development of the project and all Departments reviewed the current development configuration prior to its original approval on January 2, 2002. V. Environmental Review Resolution No. 4241 certifying the Final, Environmental Impact Report (FEIR) for the El Segundo Corporate Campus Project became effective on July 12, 2002. There have been no changes to the project or the property since its effective date or the impacts caused by the project. Thus, the stay would not have the potential to create any new significant impacts or additional impact from those previously disclosed in the FEIR. Therefore, it is appropriate for the Planning Commission to rely on the FEIR in considering the stay'request. VI. Conclusion Staff recommends approval of the stay of Vesting Tentative Tract Map No. 53570, and associated project approvals, subject to the conditions contained in Draft Resolution No. 2563. VII. Exhibits A. Draft Planning Commission Resolution No. 2563 B. Planning Commission Staff Report, November 15, 2001 C. Planning Commission Staff Report, February 12, 2004 D. City Council Resolution No. 4241 E. Planning Commission Resolution No. 2559 F. Application G. Vesting Tentative Map No. 53570 3 023 Prepared by Alexis Schopp, Contract Planner t�lwv i � Iwv K' berly Chri ensen, AICP, Planning Manager Community, onomic and Development Services N LJ & "" m s M. Hansen, Director o unity, Economic and Development Services PAPlanning & Building Safety\PROJECTS\626 - 650 \EA - 638 \EA- 638.sr.ve2.doc 021} EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: Unfinished Business AGENDA DESCRIPTION: Consideration and possible action to give Premiere Golf Inc. Centers, LLC notice of the City's intention to terminate the current golf course management and concession agreements at the Lakes at El Segundo (The Lakes estimated effective date is May 2004); authorize the Mayor to execute month -to month management and concession agreements with American Golf Corporation, LLC (AGC, LLC), including granting AGC, LLC an exclusive right to negotiate a lease or long term management agreement with AGC, LLC for the Lakes at El Segundo; approve refinancing the City of El Segundo's portion of the 1992 Association of Bay Area Governments (ABAG) Certificates of Participation (Bonds /COP) for the golf course; appropriate $2,500 for additional staff time during the transition; authorize the City Managerto execute agreement in a form approved by the city Attorney with Fieldman, Rolapp and Associates as financial advisors and with Burke, Williams, and Sorensen as the Bond and Disclosure Counsel on refinancing the 1992 ABAG Certificates of Participation; and authorize the City's auditors to assist in the management transition by performing an audit of the existing golf course financial statements. (Fiscal impact $211,500) COUNCIL ACTION: 1. Authorize the City Manager to give Premiere Golf Inc. Centers, LLC notice of the City's intention to terminate the current contracts for management and concession services based upon the date that AGC, LLC will be ready to operate the golf course. (cont.) BACKGROUND & DISCUSSION: The City has had an agreement with Premiere Golf Inc. since 2000 to manage the Lakes at El Segundo. (cont.) ATTACHED SUPPORTING DOCUMENTS: ➢ Calendar for refinancing the bonds. ➢ Management and concession agreements with AGC, LLC FISCAL IMPACT: $200,000 refinancing closing costs; $2,500 in staff time; and $9,000 audit fees Operating Budget: $209,000 Amount Requested: $211,500 Account Number: 001 -400- 2502.6214 Project Phase: Closing costs to be paid in refinancing Appropriation Required: x Yes _ No $2,500 for additional staff time ORIG�/ e� DATE: ///J Bret Plumlee, Director Administrative Services 4 RECOMMENDED COUNCIL ACTION: (continued) 2. Authorize the Mayor to execute month -to -month management and concession agreements with AGC, LLC to manage the Lakes at El Segundo, including granting AGC, LLC an exclusive right to negotiate a lease or long -term management agreement of the Lakes with the City of El Segundo. 3. Authorize staff to proceed with refinancing the 1992 ABAG Golf Course COP. 4. Appropriate $2,500 for additional staff time towards facilitating the management transition. 5. Authorize the City Manager to execute agreements in a form approved by the City Attorney with Fieldman, Rolapp and Associates as financial advisors and with Burke, Williams, and Sorensen as the Bond and Disclosure Counsel on refinancing the 1992 ABAG Certificates of Participation. 6. Authorize City's auditors to perform an audit of the existing golf course financial statements. 7. Alternatively discuss and take other action related to this item. BACKGROUND & DISCUSSION: (continued) In October of 2001 the City sent out a Request for Proposal for a new golf course management contract. The Golf Course Sub - Committee reviewed nine (9) qualification statements from interested golf course management companies and invited four firms to submit proposals. The committee then reviewed these proposals, and interviews of all four companies were held in December 2001. The sub - committee then directed staff to complete reference checks and financial analysis on two firms, American Golf and Kemper Sports. Recreation and Parks, Administrative Services, and the City Attorney's office performed the due diligence, and the Golf Course sub - committee recommended American Golf. This recommendation was then sent to the Recreation and Parks Commission, and on January 16, 2002 the Commission recommended American Golf to the City Council for action. The entire golf course industry has experienced difficult financial times over the last two years and this impacted each of the firms the Golf Course sub - committee reviewed. On February 5, 2002, City Council directed staff to begin negotiations with American Golf, and Premiere Golf was placed on a month -to -month contract for golf course management services. During this time American Golf Corporation restructured their entity and staff continued to perform due diligence in analyzing their financial viability. During this review process, staff recognized that there are potential advantages to refinancing the existing bond obligations on the golf course as a taxable rather than a tax - exempt bond offering (see discussion regarding refinancing set forth below). Based upon current market conditions, it is anticipated that the City can achieve a lower interest rate even if a taxable rather than a tax - exempt offering is pursued. Accordingly, staff is recommending entering into what is anticipated to be an interim month -to -month arrangement with AGC, LLC while the refinancing is pursued. It should be noted that while the staff is still reviewing the financial strength of AGC, LLC, staff believes that it is prudent to change operators at the course immediately as staff does not believe the current operator is managing the course in an acceptable manner. 026 Notice to Existing Management Company Staff is requesting the City Council's approval to give notice to the Premier Golf Inc. of its intention to terminate the current management and concession agreements and prepare for the transition to the new management company. During the notice period, AGC, LLC is required to obtain an on -site alcohol sales license as a prerequisite to the commencement of the agreements. Should there be any delay in AGC, LLC's ability to obtain the license, the staff will return to the Council to seek alternative direction with respect to the agreements. Staff is not anticipating any delays, but given the transition process cannot be guaranteed staff wanted to acknowledge this issue at this time. Agreement with AGC. LLC The City Attorney's office has been finalizing the terms of a month -to -month agreement with AGC, LLC. It is staffs recommendation to authorize the Mayor to execute an agreement with AGC, LLC to provide interim management services at the Lakes until the existing bonds can be refinanced. Terms of the month -to -month agreement include a fixed monthly payment of $12,500; a performance incentive of 2% of gross revenue up to $2.5 million and 4% of gross revenue over $2.5 million with a cap of $37,500. The concession agreement provides that the City shall be paid 10% of gross concession revenues on a monthly basis with all net revenues belonging to AGC, LLC. The City currently pays a fixed monthly management payment of $11,088 and receives approximately $32,000 annually in concession revenues. The City will be able to terminate the agreement at anytime with 30 days notice. However, the agreement grants AGC, LLC a right to exclusively negotiate a long -term lease or management agreement for the Lakes with the City of El Segundo. The agreement provides that the city must engage in an exclusive negotiation process with AGC, LLC but the City can in its sole discretion determine it does not want to enter into a lease or long term management agreement with AGC, LLC. The exclusive negotiation period is for 120 days. The hundred twenty day period can be triggered by the City at any time. This exclusive negotiation period can only be avoided by the City if (i) the Operator terminates the agreement, or (ii) the City terminates the agreement for cause, or (iii) the City determines in its reasonable discretion that AGC, LLC is not a financially acceptable operator, or (iv) 18 months have elapsed since the execution of the Agreement. Accordingly, while the City could terminate the agreement during the first 18 months for any reason, it could only enter into a month -to -month arrangement with another operator during this period unless it has completed the exclusive negotiation process with AGC, LLC or one of the above - stated conditions is met. It is anticipated that while the City is pursuing the bond refinancing option, that the City Attorney's office and staff will perform additional due diligence on the financial operations of AGC, LLC and that the staff will start the exclusive negotiation process with AGC, LLC. Bond Refinancing The current outstanding principal debt of the 1992 Association of Bay Area Government (ABAG) Certificates of Participation ( "Golf Course Bonds ") is $3,435,000. Debt service payments will continue until August 2012 with interest rates ranging from 6.3% to 6.8 %. 0 z� Staff is recommending refinancing the existing tax - exempt bonds to taxable bonds. Based on an estimated range of interest rates from 5.0% to 6.0 %, the City would be able to refinance to a taxable bond issue and take out proceeds for much needed capital improvements with only a small increase from the current debt service payments. The interest rates in the bond market continue to be favorable. However, subject to fluctuation in the bond market, that would impact the interest rate and the proceeds that the City would be able to obtain. By refinancing the bonds, difficult restrictions on the current and any future management contracts would be lifted, allowing for an improved ability to negotiate the basis of compensation and term of the contract. The City would be able to enter into a lease arrangement (which is prohibited under tax - exempt bonds) with the next management company, which would enhance the amount the City receives on an annual basis. The Golf Course has incurred net losses to the City for the past three fiscal years. It is anticipated that a lease would provide a fixed base amount to be paid to the City on a monthly basis with a percentage interest in revenues based upon agreed upon thresholds being met. A lease would also result in a reduction in the amount of staff oversight time that is currently required under the management agreement. Finally, under a lease agreement more of the legal liabilities for the operation of the course would be shifted from the City to the lessee as the lessee would have control over the premises and the operation. Staff is also recommending Feldman, Rolapp and Associates as the independent financial advisor for the refinancing. This firm has considerable experience in the municipal bond market and served as the City's financial advisor for the Air Force Base project. The financial advisor will provide quantitative analysis of the transaction, review the credit structure of the transaction, review disclosure material, evaluate market pricing and negotiate underwriter fees. Staff is also recommending using Stone & Youngberg as the bond underwriter and Burke, Williams, and Sorensen as the bond and disclosure counsel. This firm has significant experience dealing with golf course financings, and they are one of the biggest regional underwriters with a primary focus on the California market. Robert Messinger of Burke, Williams, and Sorensen will provide the bond and disclosure services for the City. He has specialized in municipal finance matters since 1994 and has many years of experience in working as bond and disclosure counsel. As part of its financial advisory role, Fieldman, Rolapp and Associates will review the refinancing fees and if necessary assist the City staff in negotiating lower rates. Fieldman, Rolapp and Associates will negotiate first with Stone & Youngberg to obtain the lowest possible bond underwriter fees, and if Stone & Youngberg's fees are not the lowest, Fieldman, Rolapp and Associates will competitively bid the underwriter's fees on the City's behalf. All professional fees are taken from the bond proceeds and are contingent upon issuing the bonds. If the City Council chooses to move forward with refinancing the Golf Course Bonds, the financial advisor and staff will work closely with the bond and disclosure counsel to coordinate the bond offering so that it will be completed prior to the August 1st, 2004 debt service payment. An estimated timeline of the refinancing schedule is attached. 028 Additional Staff Time As the transition of management companies takes place, there is a potential for loss of services in operations or maintenance. The type of service losses may require City staff to provide support to the Lakes until the transition is complete. As a result, staff is recommending an appropriation of $2,500. Audit Services Included in the FY 2003 -2004 budget is an appropriation for additional audit services to be provided by Lance Soll & Lunghard to ensure that there is a smooth transition to the new management company. This is consistent with accounting best practices and was anticipated with the transition. Beginning April 8, 2004, the City's audit firm Lance, Soil, and Lunghard will perform a review of balance sheet accounts for the proshop, driving range, restaurant, and banquet facility. At the end of the 30 -day interim period, the auditors will return to perform a detailed review of all phases of the Lakes operations and major balance sheet accounts including cash inventories, prepaid expenses, receivables, and fixed assets. 029 Heldman, Rolapp & Associates F1'' —Hr `LTFIA4H ^IpI WVJi OUTO-- ,oF4eFH- APRIL 2004 S M T W T F S 1 2 3 4 5 6 7 8 910 Il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 City of El Segundo Golf Course Refinancing Preliminary Financing Schedule City = City of El Segundo FRA = Financial Advism[Fieldman, Rolapp & Associates BC = Bond Counsel/Burke, Williams & Sorenson UW = Underwriter /Stone & Youngberg R = Rating Agency/ Trustee = Trustee/ DATE DESCRIPTION April 6, 2004 • Discussion of and approval by City Coun of refunding concept • Appointment of Financial Advisor, Bond Counsel and Underwriter (subject to negotiation of underwriting costs) NNE 2004 MAY 2004 M T W S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23130 24/31 25 26 27 28 29 City = City of El Segundo FRA = Financial Advism[Fieldman, Rolapp & Associates BC = Bond Counsel/Burke, Williams & Sorenson UW = Underwriter /Stone & Youngberg R = Rating Agency/ Trustee = Trustee/ DATE DESCRIPTION April 6, 2004 • Discussion of and approval by City Coun of refunding concept • Appointment of Financial Advisor, Bond Counsel and Underwriter (subject to negotiation of underwriting costs) Week of April 12, 2004 • Conference call to discuss transaction • Term Sheet provided to City and Bond Counsel Week of April 19, 2004 • 1" draft of Lease documents prepared • 1" draft of Credit Presentation Package for rating agencies delivered to City and Underwriter for review Week of April 26, 2003 • Conference call initiated by Fieldman Rolapp to discuss documents April 29, 2004 • Credit packages sent out to rating agencies Week of May 10, 2004 • 2nd draft of Lease documents prepared • Discussion with rating agency continues relating to documents RESPONSIBLE PARTIES FRA BC FRA All BC FRA 030 NNE 2004 S M T W T F S 1 2 3 4 5 1 6 7 8 9 l0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 I Week of April 12, 2004 • Conference call to discuss transaction • Term Sheet provided to City and Bond Counsel Week of April 19, 2004 • 1" draft of Lease documents prepared • 1" draft of Credit Presentation Package for rating agencies delivered to City and Underwriter for review Week of April 26, 2003 • Conference call initiated by Fieldman Rolapp to discuss documents April 29, 2004 • Credit packages sent out to rating agencies Week of May 10, 2004 • 2nd draft of Lease documents prepared • Discussion with rating agency continues relating to documents RESPONSIBLE PARTIES FRA BC FRA All BC FRA 030 Fieldman, Rolapp & Associates ,FSFtiF='J,F,1,6 A'WORS,,50� =aNrnFa- City of El Segundo Golf Course Refinancing Preliminary Financing Schedule 031 RESPONSIBLE DATE DESCRIPTION PARTIES May 18, 2004 • Receipt of rating R • Final comments on Lease documents and Official Statement due All May 18, 2004 • Final Bond Documents and Preliminary Official Statement to City for distribution to City Council June 1, 2004 • City Council passes Resolution approving City documents in final form; deems Preliminary Official Statements final and gives staff the authority to complete financing June 4, 2004 • Preliminary Official Statement printed and City, FRA, BC, UW mailed to investors —first non - contingent expense incurred. NO FINANCIAL COMMITMENT MADE BY CITY UNTIL THIS DATE UW • Premarketing of financing begins June 14, 2004 • Pre - pricing call City, FRA, UW June 15, 2004 • Bonds priced City, FRA, UW • Execution of Bond Purchase Agreement City, UW June 18, 2004 • Official Statement finalized, printed and City, FRA, BC, UW mailed • Bond documents finalized City, FRA, BC, UW June 23, 2004 • Preclosing City, FRA, BC, UW, T • Recording of Lien BC, T June 24, 2004 • Bond Closing - Delivery of Funds City, FRA, BC, UW, T June 25, 2004 • Trustee provides notice of redemption to T bondholders August 1, 2004 • Redemption of El Segundo's portion of the T 1992 Certificates 031 CITY OF EL SEGUNDO MANAGEMENT AGREEMENT FOR THE OPERATION AND MAINTENANCE OF THE EL SEGUNDO GOLF COURSE AND RELATED FACILITIES THIS MANAGEMENT AGREEMENT FOR THE OPERATION AND MAINTENANCE OF THE EL SEGUNDO GOLF COURSE AND RELATED FACILITIES ( "this Agreement "), for reference dated as of , 2004, is entered into by and between the CITY OF EL SEGUNDO ( "CITY "), a California municipal corporation, and AGC LLC HOLDING ( "OPERATOR "), a Delaware limited liability company. RECITALS 1. CITY owns that certain real property which is the location of the E1 Segundo Golf Course and related facilities more particularly described in Exhibit A attached hereto and incorporated herein by this reference. 2. CITY desires to provide for the overall management and operation of the E1 Segundo Golf course and related facilities and the collection of fees therefrom to insure first class quality golf programs and related benefits for the public. 3. OPERATOR represents that it is well - qualified through its experience to manage and operate the E1 Segundo Golf Course and related facilities. LA #4845- 7687 -5520 v1 1 03 4. CITY and OPERATOR agree that the primary objectives for OPERATOR's performance under this Agreement are to maximize (1) the public use of the E1 Segundo Golf Course and related facilities, and (2) the profit received by CITY as a result thereof. 5. OPERATOR and CITY have contemporaneously entered into that certain agreement entitled "Concession Agreement," pursuant to which OPERATOR will purchase and sell Liquor, as defined in the Concession Agreement, for and at the Restaurant. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 1. DEFINITIONS The following terms shall be defined as follows for the purposes of this Agreement: 1.1 Actual Gross Course Revenue. "Actual Gross Course Revenue" shall mean any and all revenues earned during an Operating Year attributable to operations directly relating to the Golf Course. LA #4845- 7687 -5520 V1 2 0 3,; 1.2 Actual Gross Lesson Revenue. "Actual Gross Lesson Revenue" shall mean any and all revenues earned during an Operating Year attributable to operations directly relating to Golf Lessons. 1.3 Actual Gross Range Revenue. "Actual Gross Range Revenue" shall mean any and all revenues earned during an Operating Year attributable to operations directly relating to the Driving Range. 1.4 Actual Gross Restaurant Revenue. "Actual Gross Restaurant Revenue" shall mean any and all revenues earned during an Operating Year attributable to operations directly relating to the Restaurant, except for Actual Gross Liquor Revenue as that term is defined in the Concession Agreement. 1.5 Actual Gross Shop Revenue. "Actual Gross Shop Revenue" shall mean any and all revenues earned during an Operating Year attributable to operations directly relating to the Pro Shop. 1.6 Annual Budget. "Annual Budget" shall have the meaning set forth in Section 6.1 of this Agreement. 1.7 Annual Gross Revenue. "Annual Gross Revenue" shall mean any and all revenues earned during an Operating Year attributable to operations directly relating to the E1 Segundo LA #4845- 7687 -5520 v1 3 Golf Facility including, but not limited to, green fees, merchandise sales, Driving Range fees, Golf Lesson fees, rental revenue and food and beverage sales, but not Actual Gross Liquor Revenue as that term is defined in the Concession Agreement. The sum of the Actual Gross Course Revenue, Actual Gross Lesson Revenue, Actual Gross Range Revenue, Actual Gross Restaurant Revenue and Actual Gross Shop Revenue for an Operating Year shall equal the Annual Gross Revenue for that Operating Year. 1.8 Capital Expenditure. "Capital Expenditure" shall have the meaning set forth in Section 7.4 of this Agreement. 1.9 Omitted. 1.10 Commencement Date. "Commencement Date" shall have the meaning set forth in Section 4.1 of this Agreement. 1.11 CPI Adjustment Period. "CPI Adjustment Period" shall mean (i) with respect to the first adjustment in the fixed monthly fee described in Section 8.1 below, the period commencing on the first day of the second full calendar month before the Commencement Date and continuing through the last day of the third full calendar month before the commencement of third Operating Year; and (ii) with respect to each adjustment in the fixed monthly fee described in Section 8.1 below thereafter, the twelve (12) month period ending on the last day LA #4845- 7687 -5520 vl 4 03 of the third calendar month before the commencement of the applicable Operating Year with respect to which the fixed monthly fee is being adjusted. 1.12 Direct Cost. "Direct Cost" shall have the meaning set forth in Section 7.1 of this Agreement. 1.13 Director. "Director" shall mean the City Manager of CITY or the City Manager's authorized and appointed designee. 1.14 Driving Range. "Driving Range" shall mean the golf ball driving practice facility located at the E1 Segundo Golf Facility and shown on the diagram attached hereto in Exhibit B. 1.15 E1 Segundo Golf Facility. "E1 Segundo Golf Facility" shall mean all of the buildings, grounds, fixtures, structures, restrooms, equipment, computers, irrigation and controls, tools, vehicles, fencing and all appurtenances thereto involving the Golf Course, Storage Space, Pro Shop, Restaurant, maintenance building, Driving Range and any other area located on or at the real property described in Exhibit A. 1.16 Omitted. 1.17 Golf Course. "Golf Course" shall mean the nine -hole golf course facility located at the E1 Segundo Golf Facility and shown on the diagram attached hereto in Exhibit B. LA #4845- 7667 -5520 V1 5 036 1.18 Golf Course Manual. "Golf Course Manual" shall mean the manual for the operation and maintenance of the Golf Course attached hereto in Exhibit C and all reasonable revisions thereto promulgated by the Director from time to time made after written notice to and consultation with OPERATOR. 1.19 Golf Lessons. "Golf Lessons" shall mean the professional golf instruction given at the E1 Segundo Golf Facility by either the G.C.S.A.A. PGA Golf Professional or qualified golf instructors employed or subcontracted there by 1.20 Maintenance Specifications. "Maintenance Specifications" shall mean the specifications for maintenance of the Golf Course set forth in the Golf Course maintenance Specifications attached hereto as part of the Golf Course Manual in Exhibit C and all reasonable revisions thereto by the Director from time to time made after written notice to and consultation with OPERATOR. Any changes or revisions in the Maintenance Specifications or in current material and equipment standards proposed by OPERATOR shall be subject to the approval of the Director which approval shall not be unreasonably withheld or delayed. LA #4845- 7687 -5520 vi 6 03 7 1.21 Operating Year. A. The first Operating Year shall commence on the date that the OPERATOR begins operation of the E1 Segundo Golf Course and end on September 30, 2004 or if this Agreement is sooner terminated on such termination. B. Unless this Agreement is sooner terminated, each Operating Year thereafter shall comprise the period of twelve (12) full calendar months, commencing on October 1 and ending on September 30 or if this Agreement is sooner terminated on such termination. The last Operating Year shall end on the termination of this Agreement. 1.22 Projected Gross Course Revenue. "Projected Gross Course Revenue" shall mean the projected amount of revenues to be earned during an Operating Year attributable to operations directly relating to the Golf Course. 1.23 Projected Gross Revenue. "Projected Gross Revenue" shall mean the projected amount of revenues to be earned during an Operating Year attributable to operations directly relating to the E1 Segundo Golf Facility including, but not limited to, green fees, merchandise sales, Driving Range fees, Golf Lesson fees, rental revenue and food and beverage sales, but not the Projected Gross Liquor Revenue as that term is defined in the LA #4845- 7687 -5520 V1 7 ( ]�Q )38 Concession Agreement. The sum of the Projected Gross Course Revenue, Projected Gross Lesson Revenue, Projected Gross Range Revenue, Projected Gross Restaurant Revenue and Projected Gross Shop Revenue for an Operating Year shall equal the Projected Gross Revenue for that Operating Year. 1.24 Projected Gross Lesson Revenue. "Projected Gross Lesson Revenue" shall mean the projected amount of revenues to be earned during an Operating Year attributable to operations directly relating to the Golf Lessons. 1.25 Projected Gross Range Revenue. "Projected Gross Range Revenue" shall mean the projected amount of revenues to be earned during an Operating Year attributable to operations directly relating to the Driving Range. 1.26 Projected Gross Restaurant Revenue. "Projected Gross Restaurant Revenue" shall mean the projected amount of revenues to be earned during an Operating Year attributable to operations directly relating to the Restaurant (including but not limited to revenues from private events, such as banquets, held at the Restaurant) except for the Projected Gross Liquor Revenue as that term is defined in the Concession Agreement. 1.27 Projected Gross Shop Revenue. "Projected Gross Shop Revenue" shall mean the projected amount of revenues to be LA #4845- 7687 -5520 v1 8 v 3 ') earned during an Operating Year attributable to operations directly relating to the Pro Shop. 1.28 Pro Shop. "Pro Shop" shall mean the golf professional and merchandise facility located at the E1 Segundo Golf Facility and shown on the diagram attached hereto in Exhibit B. 1.29 Restaurant. "Restaurant" shall mean the food and beverage dining facility located at the E1 Segundo Golf Facility and shown on the diagram attached hereto in Exhibit B. 1.30 Starting Balance. "Starting Balance" shall have the meaning set forth in Section 9.3 of this Agreement. 1.31 Storage Space. "Storage Space" shall mean the equipment storage space located at the E1 Segundo Golf Facility and shown on the diagram attached hereto in Exhibit B. 1.32 Interpretation of Terms. In the event of any conflict in the definition or interpretation of any word, responsibility, service or schedule between this Agreement and the exhibits attached hereto, such conflict or inconsistency shall be resolved by giving precedence in the following priority order: first to this Agreement; then to the Maintenance Specifications attached hereto in Exhibit C; and then to the Golf Course Manual attached hereto in Exhibit C. LA #4845- 7687 -5520 V1 9 0 4 2. RETENTION OF OPERATOR 2.1 E1 Segundo Golf Facility. As of the Commencement Date, CITY hereby retains OPERATOR for the management and operation of the E1 Segundo Golf Facility, including, but not limited to, the Golf Course, Pro Shop, Storage Space, Restaurant, Driving Range, restrooms and all other buildings located at the E1 Segundo Golf Facility. The CITY will, within ten (10) days of the execution of this Agreement, cause a thirty (30) day notice to be given to the current operator of the E1 Segundo Golf Facility such that the CITY shall make the facility available to OPERATOR to operate, and the OPERATOR shall commence operation of the facility, on the 1St day of the month that follows the end of such notice period provided, however, that CITY shall use its reasonable best efforts to make the facility available to OPERATOR but shall incur no liability by its failure to make the E1 Segundo Golf Facility available to OPERATOR. OPERATOR's sole remedy will be that in the event said facility is not made available within eight (8) months after the execution of this Agreement, OPERATOR may terminate this Agreement by giving CITY thirty (30) days or more prior written notice of such termination. The OPERATOR shall work with the current operator to provide for a smooth and orderly transition of the operation of the E1 Segundo Golf Course Facility. LA #4845- 7687 -5520 V1 10 l� Y 1 3. ACCEPTANCE OPERATOR has inspected the E1 Segundo Golf Facility including, but not limited to, the Golf Course, the Driving Range, the Pro Shop and the Restaurant, and confirms that they are in satisfactory condition and ready to be operated, and as of the Commencement Date, OPERATOR accepts their operation in accordance with the provisions of this Agreement. 4. TERM 4.1 Term of Agreement. The term of this Agreement shall be for a period of one month commencing on the date ( "Commencement Date ") that the OPERATOR commences operation of the El Segundo Golf Course Facility and shall be automatically renewed for one month periods unless terminated by either party on not less than thirty (30) days written notice of such termination. Prior to commencing operation of the Facility, the OPERATOR shall have obtained all necessary licenses and permits, including without limitation all licenses necessary to carry out the terms and conditions of the Concession Agreement that the CITY is entering into with the OPERATOR concurrently with this Agreement. Upon the CITY's request, OPERATOR will co -sign CITY's written confirmation of Commencement Date. LA #4945 - 7697 -5520 vl 11 042 4.2 CITY Option to Terminate. Notwithstanding the provisions of Section 4.1 or any other provision of this Agreement, CITY may terminate this Agreement unilaterally without cause or penalty at any time by giving OPERATOR thirty (30) days or more prior written notice of such termination. 4.3 Effect of Termination. Upon termination of this Agreement, all employees and agents of OPERATOR shall vacate the premises of the E1 Segundo Golf Facility and shall have no further rights or duties thereon, except to reasonably cooperate for such time as is reasonably necessary, not to exceed ninety (90) days, after the termination of this Agreement in a proper transfer of the premises and records of the E1 Segundo Golf Facility. 4.4 If at any time within eighteen (18) months from the date of execution of this Agreement, provided i-t-this Agreement has not been terminated, GITY elects t enter inte a differ '_ Witte e to by CITY for cause or Fae� it shall en netiee -1t being - understeed, hewever,and provided further that CITY shall _-___- --_ liability arising eut ef -- has not determined in eenneetien with sueh negetiatien -and .its LA #4845- 7687 -5520 V1 12 043 reasonable discretion that OPERATOR is not financially suitable (execution of this Agreement shall not be eb ;ga ` e to ,rater J <nte any agreement wit used as evidence that OPERATOR is financially suitable), CITY elects to enter into an with respect to the operation of the E1 Segundo Golf Facility, which is not month -to -month or terminable by CITY on thirty (30 days notice, it shall negotiate for such arrangement exclusively with OPERATOR for a period expiring one hundred twenty (120) after the date CITY notifies OPERATOR in writinq that CITY desires to enter into such nt. 5. OPERATOR'S BASIC SERVICE OBLIGATIONS 5.1 Golf Professional Services. OPERATOR shall sell, rent, store and repair golf equipment, sell golf related clothing and supplies, provide instructional services in the playing of golf, rent hand carts and operate the Golf Course, Pro Shop and Driving Range as set forth in this Agreement. OPERATOR Shall employ or contract with a properly certified Class "A" PGA Golf Professional at the E1 Segundo Golf Facility subject to the approval of the Director which approval shall not be unreasonably withheld or delayed. A. Merchandise. OPERATOR shall provide and maintain in the Pro Shop such inventory of golf merchandise, in type, quality and quantity, as is deemed appropriate by the OPERATOR LA #4845- 7687 -5520 v1 13 0 4� and as is reasonably acceptable to Director to adequately serve the public. After written notice to and consultation with OPERATOR, the Director shall have the right to prohibit the sale and rental of any item of merchandise on finding(s) that the item(s) is of such inferior quality as to not be in the public interest to be offered for sale or that such item(s) is not necessary or desirable for proper service to the public. B. Golf Instruction. OPERATOR shall provide for golf instruction by employing or contracting with qualified instructors accredited by the PGA and the PGA apprentice program. OPERATOR shall cause all golf instructors including the Class "A" PGA Golf Professional to comply with the rules and regulations of the Golf Course Manual. C. Junior Golf Program. OPERATOR shall implement and promote a junior golf program as provided in the Golf Course Manual by providing group lessons, range balls and general golf instructions, and by conducting junior tournaments. 5.2 Golf Course Starter Services. OPERATOR shall render and provide Golf Course starter services including, but not limited to, the opening and closing of the Golf Course at the appropriate times, the collection of green fees and tournament fees, the taking of reservations from patrons at the Golf Course, over the telephone and through the internet as LA #4845- 7687 -5520 v1 14 045 reasonably prescribed by the Director, the recording of reservations on starter sheets, the placing of golfers' names on a call sheet as necessary, the sending of golfers to the tee and starting them off at proper intervals in groups of five, four, three and two, as applicable, the receiving of requests from groups for tournaments, the booking of tournaments, the satisfying of tournament food and beverage needs through the Restaurant, the taking of such actions as OPERATOR determines are appropriate to speed play on the Golf Course, the entering of golfers' names on the starter's sheet, the issuing of a cash register receipt to each golfer as the green fee is paid, and the totaling of starter sheets at the end of each day's play and reconciling them with fee category totals on the cash register detail tape. A. Startinq Times. OPERATOR shall schedule and reserve starting times for tournaments in accordance with procedures established in the Golf Course Manual. B. Marshaling Time. OPERATOR shall provide the services of a marshal to be on duty at the times established by the Director, with the exception of periods of inclement weather. OPERATOR shall submit a proposed schedule of marshal services as provided in the Golf Course Manual for the Director's approval, disapproval or conditional approval with LA #4845- 7687 -5520 vl is () 4 6 its submission of the Annual Budget. Approval of the schedule by the Director shall not be unreasonably withheld or delayed. The primary purpose of the marshal's duties shall be to expedite play on the Golf Course at all times. A secondary duty will be to ensure compliance with all Golf Course rules and regulations. C. Minimum Hours of Operation. At a minimum, the facilities shall be open and available to the public in accordance with the following daily hours of operation: Facility Driving Range Golf Course Pro Shop Restaurant Hours of Operation 6:00 a.m. to 11:00 p.m. dawn to dusk 6:00 a.m. to 8:00 p.m. dawn to dusk The above minimum daily hours of operation may be reasonably changed or revised by the Director from time to time made after written notice to and consultation with OPERATOR. 5.3 Building and Equipment Maintenance Services. OPERATOR shall keep and maintain the premises of, and all tangible and intangible personal property used in the operation of, the E1 Segundo Golf Facility, including but not limited to, the Golf Course, Pro Shop, restrooms, Storage- Space, Driving Range and J47 LA #4845- 7687 -5520 vl 16 Restaurant, and all buildings, structures, improvements, fixtures, equipment, utility systems and all computers, software and internet infrastructure, in good, operable, usable and sanitary order and repair and in a good and first class condition throughout the term of this Agreement, providing for such repairs, replacements, rebuilding and restoration as may occur in the ordinary course of business and be required by the Director, or as may otherwise be required, in compliance with this Agreement. All such replacements, rebuilding and restoration, but not minor repair, shall be approved by the Director prior to implementation, which approval shall not be unreasonably withheld or delayed. 5.4 Grounds Maintenance Services. OPERATOR shall provide ground maintenance services to the E1 Segundo Golf Facility and its premises as set forth in the Maintenance Specifications. A. Inspections. CITY may conduct both scheduled and unscheduled inspections of the premises of the E1 Segundo Golf Facility without interrupting its normal operation. The written report of such inspections shall be retained for reference by CITY and a copy of the report shall be forwarded to OPERATOR. OPERATOR shall review the report and prepare a written response to the noted exceptions and findings within 15 days of its receipt of the report, including contemplated courses of action LA #4845- 7687 -5520 v1 17 J 11 5z to correct the noted exceptions and findings. After consulting with the Director, OPERATOR shall take the corrective action suggested by the Director. B. Maintenance Personnel. Subject to the Director's prior approval, OPERATOR shall provide and maintain in its employ or by subcontract a G.C.S.A.A. PGA golf course superintendent and maintenance crew at the E1 Segundo Golf Facility during normal daily working hours. OPERATOR shall employ or provide by subcontract sufficient personnel to perform all work scheduled and required by CITY in accordance with this Agreement. C. Suspension of Play. Whenever play on the Golf Course or Driving Range must be temporarily suspended due to inclement weather conditions, OPERATOR shall make the decision concerning when to allow play to resume. D. Equipment, Supplies and Materials. OPERATOR shall furnish all necessary equipment, supplies and materials of good quality and in sufficient number to fulfill the requirements of this Agreement and to accomplish a level of maintenance which satisfies the standards set forth in the Maintenance Specifications. The cost of this required equipment, supplies and materials shall be a Direct Cost. LA #4845- 7687 -5520 v1 18 049 5.5 Improvements. Any improvements, additions, alterations or changes (collectively, "improvements ") to the E1 Segundo Golf Facility made by OPERATOR shall be subject to, prior to the commencement of the improvements work, written approval by the Director and the securing of applicable permits and compliance with such terms and conditions as may be imposed by the Director. Any improvement that is estimated to cost in excess of Five Thousand Dollars ($5,000) shall be subject to approval by the City Council. 5.6 CITY Ownership. Ownership of all E1 Segundo Golf Facility structures, buildings or improvements thereto or thereon, merchandise, supplies, equipment and personal property, tangible and intangible, including but not limited to, hand carts, Golf Course maintenance equipment and administrative equipment, computers and software constructed or acquired by CITY, or OPERATOR on behalf of CITY, financial operation records, and all alterations, additions or betterments thereto, shall remain with and be owned by CITY. 5.7 Failure to Perform. Should OPERATOR fail, after thirty (30) days written notice from CITY of the need therefor, to perform its obligations under this Article 5 (unless such obligations cannot reasonably be performed in such thirty (30) day period, in which case such thirty (30) day period shall be LA #4845 - 7687 -5520 vl 19 l,i J U extended for such period of time as OPERATOR reasonably requires to perform its obligations so long as OPERATOR commences to perform its obligations within such thirty (30) day period and thereafter diligently pursues completion of performance of the applicable obligations) CITY may enter upon the premises of the E1 Segundo Golf Facility and perform OPERATOR's obligations. Notwithstanding the preceding sentence, in the event of an emergency, CITY may immediately enter upon these premises without notice to OPERATOR to perform emergency repairs and restoration. The cost of such repairs and restoration will be considered a Direct Cost unless they constitute a Capital Expenditure. 6. OPERATING RESPONSIBILITIES 6.1 Annual Budget. During the term and renewal of the Agreement, OPERATOR shall submit to CITY, for its review and approval, an annual budget ( "Annual Budget ") for each Operating Year. CITY acknowledges that the Annual Budget will not constitute a guaranty of the actual revenues or expenses of operating the E1 Segundo Golf Facility. The Annual Budget for the first Operating Year shall be submitted by OPERATOR to CITY not later than twenty (20) days after execution of this Agreement. CITY shall approve, disapprove or conditionally approve this Annual Budget before the Commencement Date, and LA #4845- 7687 -5520 vi 2 0 051 CITY's approval shall not be unreasonably withheld. For all subsequent Operating Years, OPERATOR shall submit to CITY an Annual Budget on or before June 1 of the Operating Year immediately preceding the Operating Year at issue in the Annual Budget. CITY shall approve, disapprove or conditionally approve these Annual Budgets on or before October 1 of the Operating Year at issue in the Annual Budget, and CITY's approval shall not be unreasonably withheld. Each Annual Budget shall be in a format reasonably acceptable to CITY and shall include, but not be limited to, the prices as set forth in Section 6.12, the projected number of employees, the projected number of rounds of golf played and Driving Range buckets of golf balls purchased, and the Projected Gross Revenue, Projected Gross Course Revenue, Projected Gross Range Revenue, Projected Gross Shop Revenue, Projected Gross Lesson Revenue and Projected Gross Restaurant Revenue, and the projected itemized amounts of Direct Costs, Capital Expenditures, and any proposed plans for any improvements, upgrading or changes to the E1 Segundo Golf Facility. After written notice to and consultation with OPERATOR, the Director shall have the authority to make reasonable changes to the Annual Budget including, but not limited to, the method of allocation for costs, expenditures and revenues. 1 l - K) LA #4845- 7687 -5520 v1 21 6.2 Annual Reports. OPERATOR shall submit to the Director, for review and approval, on or before forty -five (45) days after the end of each Operating Year, an annual report ( "Annual Report "). Each Annual Report shall include a summary regarding the physical condition of the E1 Segundo Golf Facility and any repairs or improvements made during the most recently concluded Operating Year. Each Annual Report also shall include a summary of the financial condition of the E1 Segundo Golf Facility including the Annual Gross Revenue, Actual Gross Course Revenue, Actual Gross Range Revenue, Actual Gross Shop Revenue, Actual Gross Lesson Revenue, Actual Gross Restaurant Revenue, the total amount of Direct Costs and the total amount of Capital Expenditures for the Operating Year described in the Annual Report. 6.3 Compliance with Laws. OPERATOR shall comply with all municipal ordinances and all state and federal laws and regulations applicable to the terms and conditions of this Agreement. OPERATOR shall not knowingly permit any illegal activities to be conducted on or at the premises of the E1 Segundo Golf Facility. If any permits or licenses are required, OPERATOR shall obtain all such required permits or licenses from the appropriate regulatory agency before undertaking the regulated activity. LA #4845- 7687 -5520 V1 22 _ C� v� 6.4 Compliance with Rules and Regulations. OPERATOR shall comply with all rules and regulations set forth in the Golf Course Manual and will use diligent efforts to enforce all such rules at the E1 Segundo Golf Facility. 6.5 OPERATOR's Obliaations to Not Discriminate. OPERATOR shall not discriminate against any person or group of persons on account of age, race, color, creed, religion, ancestry, national origin, gender or disability in the execution of any activities under this Agreement. Neither OPERATOR nor any person claiming under or through it shall establish or permit any prohibited practice of discrimination in the hiring of staff, selection of vendors and operators, the access to and use of the E1 Segundo Golf Facility or in the execution of any other activity under this Agreement. OPERATOR shall adopt and implement such policies, practices and procedures or modifications in policies, practices and procedures as are necessary to afford goods, services, facilities, privileges, advantages and accommodations to individuals with disabilities. OPERATOR shall at the meetings, pursuant to Section 6.11, report on such policies, practices and procedures and modifications, and on their implementation, and shall consult with the Director and take such further action as the Director may reasonably require. LA #4845- 7687 -5520 v1 23 054 6.6 Signs. OPERATOR shall not post any signs at the E1 Segundo Golf Facility without the prior approval of the Director, which approval shall not be unreasonably withheld or delayed. 6.7 Public Use; Marketing. OPERATOR shall use its reasonably best efforts to maximize the public use of the E1 Segundo Golf Facility. OPERATOR shall use its reasonably best efforts to effectively market and promote the E1 Segundo Golf Facility to attempt to insure its financial and operating success. On or before the Commencement Date, OPERATOR shall prepare and submit to CITY for the Director's approval, disapproval or conditional approval, which approval shall not be unreasonably withheld, a marketing and promotion plan for the first Operating Year. OPERATOR shall carry out the approved marketing and promotion plan for this Operating Year. For the remaining Operating Years during the term or renewal of this Agreement, as part of the Annual Budget, OPERATOR shall prepare and submit to CITY for the Director's approval, disapproval or conditional approval, which approval shall not be unreasonably withheld or delayed, a marketing and promotion plan for the Operating Year at issue in the Annual Budget. During the Operating Year at issue, OPERATOR shall carry out the approved marketing and promotion plan. For each Operating Year, OPERATOR LA #4845- 7687 -5520 V1 24 055 shall submit to CITY a report along with the Annual Report concerning all activities undertaken by OPERATOR with respect to the approved marketing and promotion plan for the applicable Operating Year. 6.8 Utilities. Upon commencement of the term of this Agreement, OPERATOR shall be responsible for arranging for the utility services required by the E1 Segundo Golf Facility, including, but not limited to, water, gas, electricity, sewer service and trash removal. OPERATOR acknowledges that during the term of this Agreement there may be a defect, deficiency or impairment of any utility system, water system, water supply system, drainage system, waste system, heating or gas system, or electrical apparatus or wires serving the E1 Segundo Golf Facility. Any expenses incurred by OPERATOR to correct any such defect, deficiency or impairment shall be a Direct Cost. 6.9 Safety. OPERATOR shall immediately correct any unsafe conditions to the premises of the El Segundo Golf Facility, as well as any unsafe practices occurring thereon, that are known by OPERATOR. OPERATOR shall regularly inspect the premises for the purposes of reviewing the safety thereof. OPERATOR shall obtain emergency medical care as soon as reasonably possible for any member of the public on or at these premises who OPERATOR knows is in need thereof because of illness or injury OPERATOR LA #4845- 7667 -5520 vl 25 0 56 shall cooperate fully with CITY in the investigation of any accidental injury or death occurring at the E1 Segundo Golf Facility and shall submit to the Director promptly an accident report describing any serious injuries or deaths at the E1 Segundo Golf Facility known to OPERATOR and at least monthly shall report all injuries known to OPERATOR. 6.10 Use of Facilities Restrictions. OPERATOR shall obtain from the Director prior written approval, which approval shall not be unreasonably withheld or delayed, of (1) any events or activities not otherwise specifically provided for or authorized under this Agreement, or (2) any extraordinary events or activities requiring the exclusive use of the E1 Segundo Golf Facility or any portion thereof. 6.11 Meetings. Representatives of OPERATOR and the Director shall meet on a quarterly schedule and at such other times as may be required by CITY to review OPERATOR's performance under this Agreement, review the monthly financial reports submitted by OPERATOR, and discuss any problems or matters as determined by CITY. 6.12 Prices. A. Goods and Services. OPERATOR shall at all times maintain a complete list or schedule of the prices charged for LA #4845- 7687 -5520 V1 26 051 all goods and services supplied to the public by or at the E1 Segundo Golf Facility. Such list or schedule of prices shall be included in each Annual Budget and provided to the Director upon his request. Such prices shall be fair and reasonable based on the following considerations: that the E1 Segundo Golf Facility is intended to serve the needs of the public with the goods and services supplied at a fair and reasonable cost; that the prices charged should be comparable to prices charged for similar goods and services in the general area; and that the profit margin should be reasonable considering the cost of providing the goods or services in compliance with the obligations of this Agreement. If the Director notifies OPERATOR that a price being charged is not fair and reasonable, OPERATOR shall have the right to confer with the Director and justify such price. Following reasonable conference and consultation thereon, OPERATOR shall make such price adjustments as may be reasonably ordered by the Director, it being understood and agreed that in any event CITY shall not price any item below its wholesale cost, except for merchandise which is obsolete or which after a reasonable time OPERATOR has not been able to sell. B. Green and Driving Range Fees and Hand Cart Rentals. OPERATOR shall set forth in each Annual Budget the LA #4845- 7687 -5520 vi 2 058 green fees, Driving Range fees, hand cart rental fees and other equipment rental fees for the Operating Year at issue; provided, however, during the term of this Agreement, after written notice to and consultation with OPERATOR, CITY may change the green fees, Driving Range fees, hand cart rental fees and other equipment rental fees to be charged by OPERATOR. No changes in green fees, Driving Range fees, hand cart rental fees or golf equipment rental fees may be made by OPERATOR without the prior written consent of CITY and unless they are reasonable. 6.13 Business License Tax. OPERATOR shall obtain the state and local licenses and permits necessary to conduct business at the E1 Segundo Golf Facility. Except as provided under the Concession Agreement, the costs, fees and charges incurred in obtaining and maintaining these licenses and permits shall constitute Direct Costs. 7. COSTS AND EXPENDITURES 7.1 Direct Cost. The Direct Costs (as defined below) shall be paid by OPERATOR from the revenues received from the E1 Segundo Golf Facility and deposited in the bank account described in Section 9.1 of this Agreement, unless such revenues are not sufficient to pay the Direct Costs, in which case the CITY shall promptly make separate funds available to pay such costs. The revenues deposited into this bank account are the LA #4845- 7687 -5520 vi 2 g 0:39 property of CITY and are not part of the consideration paid to OPERATOR by CITY for the performance of OPERATOR's obligations under this Agreement. "Direct Costs" shall be any cost incurred in good faith which is directly related to the normal and ordinary administration, staffing, operations or maintenance of the E1 Segundo Golf Facility, including, but not limited to, the following: (a) OPERATOR's employee salaries limited, however, to such employees employed exclusively at the E1 Segundo Golf Facility in its operation and maintenance. (b) OPERATOR's incentive compensation programs for the Class "A" PGA Golf Professional and qualified golf instructors. (c) OPERATOR's Employee benefits including vacation, sick leave, health insurance, disability insurance, worker's compensation insurance and incentive payments limited, however, to such employees employed exclusively at the E1 Segundo Golf Facility in its operation and maintenance. LA #4845- 7687 -5520 V1 2 9 060 (d) Lease and /or rental of equipment, excluding hand carts and capital maintenance equipment. (e) Repair and maintenance of hand carts, irrigation systems, capital equipment, the Club House buildings —, the maintenance building and other improvements. (f) All maintenance equipment, supplies and materials referenced in Section 5.4E, including but not limited to: 1. All necessary gas, fuel, oil, lubricants and spare parts for all equipment; 2. All necessary topdressing, seed, fertilizers, pesticides, fungicides, insecticides and herbicides; 3. Parts necessary for the repair and maintenance of all irrigation systems; 4. Tee towels, soaps, ballwashers, putting green cups and lags, benches, trap rakes, tee markers, tee mats, trash receptacles, LA #4845- 7687 -5520 vl 3 0 061 trash receptacle liners, cleat brushes and all other pertinent golf course equipment; 5. Materials for the installation and maintenance of french drains; and 6. Sand for traps on an as- needed basis, of a size, color and quality as determined by the Director. (g) Uniforms, laundry and linens. (h) Operating supplies, office supplies, cleaning supplies and other miscellaneous supplies. (i) Audit. (j) Advertising and marketing expenses. (k) Travel. (1) Telephone, postage and freight. (m) Fees, permits and licenses. (n) Utilities, including natural gas, water, electric power, telephones, garbage and trash collection. LA #4845- 7687 -5520 v1 31 i�16 2 (o) Parking lot maintenance. (p) Necessary start -up materials referenced in Section 9.3. (q) Insurance Premiums. (r) Inventory, merchandise, food and beverage. For purposes of this Agreement, the actual amount paid by OPERATOR for the purchase of Liquor as defined in the Concession Agreement (cost of goods) to be sold at the E1 Segundo Golf Facility, and the costs of obtaining license(s) from the California Alcohol Beverage Control Board, are not Direct Costs and are accounted and paid for pursuant to the terms and conditions of the Concession Agreement. Further, there shall not be included in Direct Costs any expense of OPERATOR's corporate office or any compensation or expense with respect to any corporate or regional employees of OPERATOR. In addition, the costs against which OPERATOR indemnifies CITY pursuant to Section 11.A below shall not constitute Direct Costs. 0 LA #4845- 7687 -5520 v1 32 � J 7.2 Direct Cost Budget. The Direct Cost Budget is the annual budget setting forth all projected Direct Costs and shall be part of the Annual Budget. The Direct Cost Budget may be amended or modified from time to time by the Director, acting reasonably, in accordance with CITY policies and procedures, to reflect actual operating circumstances, after written notice to and consultation with OPERATOR. 7.3 Excluded Operating Costs. Those operating costs which shall be paid by CITY and not included in the Direct Cost Budget include and are limited to the following: A. Possessory interest taxes, if any. B. Those maintenance and /or operating costs that are due to any reason beyond OPERATOR's reasonable control (an "occurrence of force majeure ") including, without limitation, acts of God, riots, strikes, fires, provided, however, that such expense shall continue only during the pendency of the particular occurrence of force majeure. Such excluded costs must exceed Five Thousand Dollars ($5,000) per incident, and are subject to the prior approval of the Director which approval will not be unreasonably withheld. 7.4 Capital Expenditures. A Capital Expenditure is any expenditure for new or replacement capital equipment or LA #4845-7687 -5520 v1 33 i ? 6 improvements to the E1 Segundo Golf Facility that have a life expectancy greater than or equal to one year and a cost of no less than Five Thousand Dollars ($5,000). A Capital Expenditure is not a Direct Cost and must be approved by the Director, which approval shall not be unreasonably withheld or delayed, before it may be undertaken provided, however, a Capital Expenditure of Ten Thousand Dollars ($10,000) or more may be made only with the approval in its discretion of the City Council. The cost of a Capital Expenditure shall be borne by CITY. A list of capital equipment owned or possessed by CITY relating to this Agreement as of the Effective Date is attached hereto in Exhibit D. 8. OPERATOR COMPENSATION 8.1 Fixed Monthly Fee to OPERATOR. During the term or renewal of this Agreement, CITY shall pay OPERATOR, on a monthly basis, a fixed amount of Twelve Thousand Five Hundred Dollars ($12,500); provided, however, that the monthly payment for the month of the Commencement Date and the month of the expiration or termination of this Agreement shall be made pro rata based upon the number of days in the month, and provided further that during the term or renewal of this Agreement, commencing with the third Operating Year, and for each Operating Year thereafter during the term of this Agreement, the amount of the monthly payment payable during such Operating Year shall, at the LA #4845- 7687 -5520 vl 34 9� �} commencement of such operating Year, be adjusted to reflect changes during the CPI Adjustment Period in the Consumer Price Index (CPI) issued by the Bureau of Labor Statistics of the United States Department of Labor for All Urban Consumers of the Greater Los Angeles Area, which adjustment, however, shall not exceed five percent (5 %) and shall not be less than zero percent (0 %). Said adjustment shall be made annually at the beginning of each Operating Year commencing with the Third Operating Year. 8.2 Management Incentive Fee -- Maximum Incentive Fee. The maximum incentive fee (the Maximum Incentive Fee) which may be paid OPERATOR for any Operating Year shall not exceed an amount which is twenty -five percent (25 %) of the total of the Monthly Fees payable pursuant to Section 8.1 for such Operating Year. 8.3 Management Incentive Fee. Subject to the limitation of Section 8.2, CITY will pay OPERATOR an incentive fee in each Operating Year computed as follows: (a) 2% of Annual Gross Revenues in the applicable Operating Year up to 2.5 million dollars (b) 4% of Annual Gross Revenue in the applicable Operating Year in excess of 2.5 million dollars but not, however, to exceed the Maximum Incentive Fee. LA #4845- 7687 -5520 v1 35 0 6 6 8.4 Gross Revenues Exclusions. For the purpose of determining the annual incentive fee, Gross Revenues shall be reduced by any cash refunds or credits allowed on returns by customers and shall not include the following: (a) Actual Gross Liquor Revenue as defined in the Concession Agreement; (b) Sales taxes, excise taxes, gross receipts taxes and other similar taxes now or later imposed upon the sale of food, beverages, merchandise or services and paid to the appropriate taxing authority, whether added to or included in the selling price; (c) Those fees charged by a golf professional functioning as an independent contractor for the teaching of golf lessons and instruction which are not paid by the golf professional to the E1 Segundo Golf Facility operation; (d) Receipts in the form of refunds from, or the value of merchandise, supplies or equipment returned to, shippers, suppliers or manufacturers; (e) The amount of any gratuities paid or given by customers to employees, or service charges added to customer billings which represent gratuities to employees; LA #4845- 7687 -5520 V1 36 0 6 f (f) Proceeds of insurance, except business interruption insurance; (g) Receipts from public telephones and vending machines, except to the extent of commissions paid to OPERATOR or CITY; (h) Proceeds of any borrowings by OPERATOR or CITY; (i) Any amount received by OPERATOR in connection with any claim, demand, or lawsuit, except amounts recovered for lost revenue and paid to the CITY; and (j) Initial operating funds provided for in Section 9 and funds subsequently provided by CITY. 8.5 Payment Procedures. CITY shall pay OPERATOR the monthly fee of Section 8.1 on or before the twentieth day of each month and CITY shall pay OPERATOR the Incentive Fee, if any, no more than thirty (30) days after CITY's receipt of the Annual Report of Gross Revenue unless CITY reasonably ejuestien,sdi sputes such Report. 9. FINANCIAL AND ACCOUNTING PROCEDURES 9.1 Bank Account. CITY will establish a bank account for the purposes of accepting deposits of revenues and payment of Direct Costs under this Agreement. Except for the funds which LA #4845- 7687 -5520 V1 37 0 6 8 represent the Actual Gross Liquor Revenue as that term is defined in the Concession Agreement, the funds in this account are the property of CITY and are held in trust and managed for CITY by OPERATOR. Payments by OPERATOR from this account are prohibited, and shall not occur, unless done in accordance with this Section 9.1. A. Revenues. All revenues from green fees, cart rentals, the Golf Course, Driving Range, Pro Shop, Restaurant, merchandise sales, Golf Lessons, equipment rentals, interest income and any other revenues from the E1 Segundo Golf Facility shall be deposited into the bank account described in this Section 9.1. No deposits of E1 Segundo Golf Facility revenues may be made into any other bank account for any purpose or under any circumstances. All revenues shall be deposited in the account on not later than the next business day after such revenues are received by OPERATOR. B. Allowed and Prohibited Payments. The only payments OPERATOR may make from the bank account are for Direct Costs which (1) were listed by OPERATOR in the Direct Cost Budget as a Direct Cost and approved by CITY as part of the Direct Cost Budget, or (2) were not listed in the Direct Cost Budget as a Direct Cost but the same constitutes Direct Costs reasonably and in good faith incurred by OPERATOR not exceeding, r 6 �y LA #4845- 7687 -5520 v1 38 however, during any Operating Year in the aggregate an amount which is five percent (5 %) of the total of amount of Direct Costs set forth in the Direct Cost Budget approved by the CITY for such year provided, however, if such Direct Costs exceed such amount, notwithstanding any provision of this Agreement to the contrary, OPERATOR shall not be obligated to incur such excess and shall not for such reason be in breach of this Agreement. OPERATOR shall make no other payments from the account without the CITY's prior approval, including but not limited to payments for Capital Expenditures or compensation to OPERATOR under Article 8 of this Agreement. In exercising check - writing privileges in relation to the bank account, OPERATOR shall use only the check - writing privileges associated with the bank account and approved by CITY, and no payment in excess of Five Thousand Dollars ($5,000) shall be made from this bank account without the express consent of the Director and the Director's signature on the check, except for the biweekly payroll expenses. Director shall not withhold such consent or signature if CITY is responsible for the payment pursuant to this Agreement. 9.2 Monthly Reports and Transactions. OPERATOR shall provide to CITY monthly reports of the previous month's transactions and financial status of the El Segundo Golf LA #4845- 7687 -5520 v1 39 0 7() Facility. Within twenty (20) days of the end of each month, OPERATOR shall provide CITY with the following reports and documents: 1. A monthly and year -to -date balance sheet, cash flow report and income statement. 2. A reconciliation between the bank statement and the check register. 3. After review of the above items, the CITY may request reasonable additional reports which detail previous transactions. For the term of this Agreement, CITY shall receive directly from the bank each original monthly bank statement for the bank account and OPERATOR shall receive a copy of the bank statements from CITY. OPERATOR agrees that prior to the Commencement Date it will instruct the bank to deliver the monthly bank statements to CITY and not to OPERATOR. 9.3 Beginning working Capital. On or before the Commencement Date, CITY shall deposit $ into the bank account described in Section 9.1. 9.4 Shortfalls in Working Capital. If the OPERATOR determines that the amount in the bank account described in LA #4945 - 7687 -5520 vl 40 0 7l Section 9.1 will result in a shortfall in working capital in the bank account due to higher- than - anticipated Direct Costs, the Director shall approve additional CITY deposits, and CITY shall make such deposits, to the bank account. In such an event OPERATOR shall provide any and all financial and accounting information reasonably requested by the Director to document the need for additional deposits. Provided OPERATOR has complied with Section 9.13, if it is unable to perform any of its obligations under this Agreement because of the failure by CITY to provide sufficient funds to pay Direct Costs or other amounts for which CITY is responsible under this Agreement, such failure of performance by OPERATOR shall not be deemed a default by OPERATOR, and shall not give rise to any right of termination, damages or any other remedy against OPERATOR. 10. BUSINESS RECORDS 10.1 Types of Records. OPERATOR shall maintain a method of accounting for all the revenues and expenses in connection with the operation of the E1 Segundo Golf Facility which shall be in accordance with generally accepted accounting principles correctly and accurately reflect the gross receipts and disbursements received or made by OPERATOR from the operation of the E1 Segundo Golf Facility. OPERATOR shall establish and implement adequate internal controls for this operation. The LA #4845- 7687 -5520 v1 41 0 72 accounting, including bank accounts, established for the operation of E1 Segundo Golf Facility shall be separate from the accounting used for any other business operated by OPERATOR. Such method shall include the keeping of the following records and documents: A. Regular books of account such as general ledgers; B. Journals including any supporting and underlying documents such as vouchers, checks, tickets, bank statements, etc.; C. Sales tax returns and checks and other documents proving payment of sums shown; D. Cash register tapes for the identification of day -to -day sales; E. Logs showing the dates and times of Driving Range and greens usage and Golf Lessons at the E1 Segundo Golf Facility; and F. Any other accounting records that CITY reasonably requests that are necessary for proper reporting of receipts. 10.2 Audit of Records. All documents, books and accounting records kept by OPERATOR pursuant to this Article 10 with respect to each Operating Year shall be open for inspection by LA #4845- 7697 -5520 vl 42 CITY at any reasonable time for a period expiring three (3) years after the conclusion of the applicable Operating Year addition, CITY or its authorized representative may, from time to time, conduct an audit of the books of the operation of the E1 Segundo Golf Facility covering the three Operating Years immediately preceding the date of the audit and observe the In operation of the business. CITY will use reasonable efforts to minimize the interruption with the normal operation of the El Segundo Golf Facility during any inspection or audit performed pursuant to the provisions of this Section. 10.3 Annual Financial Statements. OPERATOR shall submit audited financial statements for the operation of the E1 Segundo Golf Facility including a copy of the applicable audited statement of gross receipts and the audit management letter to CITY within one hundred twenty (120) days of the close of each Operating Year during the term of this Agreement. The audit shall be performed by an independent certified public accountant designated by CITY, and the cost of the audit shall be included as a Direct Cost of operation. 10.4 Public Records. All information obtained in connection with the CITY's inspections of the records or audits may be or become subject to public inspection and /or reproduction as public records. LA #4845- 7687 -5520 v1 43 07-4 11. INSURANCE AND INDEMNITY 11.1 Insurance. A. Worker's Compensation Insurance. OPERATOR shall obtain and keep in full force and effect, during the term of this Agreement, worker's compensation insurance and employer's liability insurance, for all workers employed by OPERATOR pursuant to this Agreement and in case any work is sublet, OPERATOR shall require its suboperator(s) similarly to provide workers' compensation insurance and employer's liability insurance for all of the latter's employees unless all the employees are covered by such protection afforded by OPERATOR. CITY and its respective officers, agents and employees shall be additional insureds under the policy, whether liability is attributable to OPERATOR or CITY. B. Liability and Property Insurance. OPERATOR shall obtain and keep in full force and effect, during the term of this Agreement, broad form general commercial liability insurance in such form and amounts as may be specified from time to time by CITY and initially in the amount of Five Million Dollars ($5,000,000) per occurrence and per annual aggregate. CITY and its respective officers, agents and employees shall be named as additional insureds under the policy, whether liability is attributable to OPERATOR or CITY. The policy shall stipulate LA #4845- 7687 -5520 vi 44 075 that this insurance will operate as primary insurance and that no other insurance effected by CITY or other name insureds will be called upon to cover a loss covered under the policy. C. Commercial Crime Insurance. OPERATOR shall obtain and keep in full force and effect, during the term of this Agreement, such policies of insurance and fidelity bonds in such form and with such coverage and in such amounts as may from time to time be established by CITY for commercial crime, employee dishonesty, theft, disappearance or destruction of money, funds or other property of, in or at the E1 Segundo Golf Facility and for loss in the event any officer, director, employee, agent or subcontractor of OPERATOR embezzles, steals or otherwise fraudulently or improperly takes or obtains CITY funds, money or property. D. Alcohol Liability Insurance. OPERATOR shall obtain and keep in full force and effect during the term of this Agreement broad form alcohol liability insurance covering the sale and purchase of alcohol by, on or at the E1 Segundo Golf Facility and all acts directly or indirectly relating to or resulting from the sale or purchase of alcohol by, on or at the E1 Segundo Golf Facility, including but not limited to bodily injury, death and property damage. The coverage shall be in such form and for such amounts as may from time to time be LA #4845- 7687 -5520 vi 45 0 7 6 established by CITY. CITY and its respective officers, employees and agents shall be the insureds or named as additional insureds under the policy, whether liability is attributable to OPERATOR or CITY. E. Omitted. F. Certificates of Insurance and Endorsements. All insurance coverage provided for under Section 11.1A, B, C and D shall be secured through policies issued by insurance companies of good reputation and of sound and adequate financial responsibility having a general policy holder's rating of not less than "A" and a financial rating of not less than Class VIII in the most current edition of Best's Rating Guide, unless such requirements are waived in writing by CITY. Such insurance companies shall be qualified to do business and in good standing in California. OPERATOR shall complete and file with CITY prior to the Commencement Date, and prior to engaging in any operation or activity set forth in this Agreement, certificates of insurance and endorsements for all insurance required pursuant to this Agreement which shall provide that no expiration, cancellation, major change in coverage or nonrenewal by the insurance company will be made during the term of this Agreement, without thirty (30) days' written notice to CITY LA #4845-7687 -5520 v1 46 0117 prior to the effective date of such expiration, cancellation, change in coverage or nonrenewal. G. Endorsement Forms. OPERATOR shall file with CITY concurrent with the execution of this Agreement, CITY's standard endorsement form providing for each of the requirements in this Section 11.1. H. Cost of Insurance. The cost of the insurance required by this Section 11.1, shall be a Direct Cost and shall be borne by CITY. 11.2 Indemnity. A. OPERATOR's Indemnity. Subject to Section 11.3 below, OPERATOR agrees to indemnify, protect, defend and hold harmless CITY and CITY's officers, directors, employees and agents from and against any and all claims, demands, actions, lawsuits, proceedings, damages, liabilities, judgments, penalties, fines, attorneys' fees, costs, and expenses: 1. which result from any act or omission constituting negligence or willful misconduct by OPERATOR or any officer, director, employee or agent of OPERATOR in connection with OPERATOR's performance under this Agreement; or 7 ` 11 LA #4845- 7687 -5520 V1 47 0 2. which result from any action taken by OPERATOR or any officer, director, employee or agent of OPERATOR relating to the Facility (a) that is expressly prohibited by this Agreement, or (b) that is not within OPERATOR's delegated authority under this Agreement. 3. which relate to or arise from allegations of OPERATOR or any officer, director, employee or agent of OPERATOR engaging in conduct which constitutes unlawful harassment, discrimination or retaliation based upon national origin, race, sex, sexual orientation or any other individual status that is protected by federal or state laws. B. CITY's Indemnity. CITY agrees to indemnify, protect, defend, and hold harmless OPERATOR and its owners, officers, directors, and employees and agents from and against any and all claims, demands, actions, lawsuits, proceedings, damages, liabilities, judgments, penalties, fines, attorneys' fees, costs and expenses: 1. which result from any event, condition, or activity occurring or existing prior to the Commencement Date; or LA #4845- 7687 -5520 v1 48 0 17 9 2. which relate to any labor or employment condition or situation occurring or existing prior to the Commencement Date; or 3. which relate to or arise from the presence in, on, under or about the E1 Segundo Golf Facility, or the escape, seepage, leakage, spillage, discharge, emission or release, of any hazardous materials, toxic substances or petroleum products (as defined or regulated under any and all applicable federal, state and local environmental, health or safety laws, ordinances and regulations) from or through the E1 Segundo Golf Facility, including without limitation any and all costs of any required or necessary repair, cleanup, remediation or decontamination of the E1 Segundo Golf Facility, and the preparation and implementation of any closure, remedial or other required plans; except to the extent such arises from OPERATOR's negligence; or 4. which result from any act or omission by OPERATOR in connection with the management and operation of the E1 Segundo Golf Facility (i) which results from any act or omission constituting negligence or willful misconduct by CITY or any employee of CITY in connection with CITY's performance under this Agreement, or (ii) that is expressly authorized by this Agreement, or (iii) that is within the scope of OPERATOR's LA #4845- 7687 -5520 v1 49 duties under this Agreement, or (iv) that is within OPERATOR's delegated authority under this Agreement, or (v) that was at the express direction of the City Council (pursuant to an action taken at a City Council Meeting), the City Manager or the CITY's Parks and Recreation Director; unless, with respect to items (ii) through (v), such act or omission constitutes negligence or willful misconduct by OPERATOR or is within the scope of the OPERATOR's defense, indemnity and hold harmless obligations set forth in Section 11.2A above in which event OPERATOR shall not be indemnified under this Section 11.2B. 11.3 Waiver of Subrogation. Notwithstanding any provision of this Agreement to the contrary, CITY shall not assert against OPERATOR, and CITY hereby waives with respect to OPERATOR, any claims and rights of recovery for any losses, damages, liability or expenses (including attorneys' fees) incurred or sustained by CITY on account of injury to persons or damage to property arising out of the ownership, operation and maintenance of the E1 Segundo Golf Facility, to the extent that the same are covered by property insurance maintained by the CITY. CITY hereby grants to OPERATOR, on behalf of any insurance company providing such insurance, a waiver of any right of subrogation which any insurer or party may acquire against OPERATOR by virtue of payment of any loss under any insurance policy. CITY LA #4845- 7687 -5520 v1 50 8 shall give notice to the insurance company providing such insurance of the release and waiver of subrogation contained in this Section 11.3, and CITY shall cause each such insurance company to provide a written subrogation waiver indicating that such insurance company waives all right of recovery by way of subrogation which such insurance company may acquire against OPERATOR and OPERATOR's insurance companies. 12. REPRESENTATIONS AND WARRANTIES 12.1 Accuracy of Representations and warranties. OPERATOR and CITY represent and warrant to the other that each on its part is authorized to execute this Agreement and that the representations and warranties of such party contained in this Agreement do not contain any untrue statement of a material fact or omit any material fact necessary in order to make the statements contained herein not misleading or incomplete. 12.2 Survival of Representations and Warranties. OPERATOR and CITY represent and warrant to the other that the representations and warranties made by such party shall be true as of the date the Agreement is executed and thereafter and shall survive the execution, performance and termination of this Agreement. LA #4845 -7687 -5520 V1 51 13. MISCELLANEOUS 13.1 Entire Agreement. This Agreement and the documents expressly referred to herein constitute the entire agreement among the parties with respect to the subject matter hereof and supersede any prior agreement or understanding among the parties with respect to such subject matter. 13.2 Severability. If any provision of this Agreement or the application of such provision to any party or circumstance, shall be invalid, the remainder of this Agreement or the application of such provision to other parties or circumstances shall not be effected thereby. 13.3 Notices. All notices, requests, demands, consents and other communications required or permitted to be given by this Agreement shall be in writing and personally delivered or placed in the United States mail, properly addressed and with full postage prepaid, certified and return receipt requested. Such notices shall be deemed received at the earlier of (a) the date actually received, or (b) five (5) business days after such mailing. Such notices shall be sent to the parties at the following addresses, unless other addresses are furnished by appropriate notice: LA #4845- 7687 -5520 v1 5 2 �- 8 ;. If to CITY, to: City of El Segundo 350 Main Street E1 Segundo, California 90245 Attention: City Manager If to OPERATOR, to: AGC LLC Holding 2951 28th Street Santa Monica, California 90405 -2961 Attention: Paul W. Major 13.4 Assignment: Subcontract. The OPERATOR's expertise, experience, financial background as well as the number of golf course properties currently operated by the OPERATOR were material and significant with respect to the CITY's decision to enter into this Agreement with the OPERATOR. Accordingly, the OPERATOR may only assign any of its rights or delegate or subcontract any of its duties under this Agreement, if such assignment, subcontract or delegation is included as part of an assignment, subcontract or delegation of the OPERATOR's rights and duties in at least twenty (20) other golf course properties operated by the OPERATOR in the Southern California region being assigned, subcontracted or delegated concurrently to the new LA #4845- 7687 -5520 v1 53 proposed operator. In such event, the assignment, subcontract or delegation is subject to the prior written consent of CITY, which consent may be withheld or conditioned in CITY's reasonable discretion based upon considerations relating to the expertise, experience, financial strength, and transition of key current operator officers and employees to the proposed new operator. Subject to the foregoing, this Agreement shall be binding on, and shall inure to the benefit of, the parties to it and their respective heirs, legal representatives, successors and assigns. 13.5 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall constitute one in the same instrument. 13.6 Headings. The article and section headings in this Agreement are for convenience of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof. 13.7 Construction. This Agreement shall be construed and enforced according to the laws of the State of California without regard to any otherwise governing principals of conflicts of laws. This Agreement shall be construed neutrally and not in favor or against any party. LA #4645- 7687 -5520 v1 54 C' 8 5 13.8 Amendment. This Agreement shall not be modified or amended except by a written agreement executed by both of the parties. 13.9 Further Actions. Each party shall take such further actions as may reasonably be required to implement the provisions of this Agreement. 13.10 Independent Contractor. OPERATOR is and shall at all times remain as to the CITY a wholly independent contractor. The personnel performing services under this Agreement on behalf of OPERATOR shall at all times be under OPERATOR's exclusive direction and control. Neither CITY nor any of its officers, employees or agents, shall have control over the conduct of OPERATOR or any of OPERATOR's officers, employees or agents, except as set forth in this Agreement. OPERATOR shall not at any time represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the CITY. OPERATOR shall not incur or have the power to incur any debt, obligation or liability whatever against CITY, or bind CITY in any manner. 13.11 Facility Names. The El Segundo Golf Facility shall be known by such trade name and /or trademark or logo as may from time to time be determined by CITY. All names, logos and designs used at the E1 Segundo Golf Facility shall be the LA #4845- 7687 -5520 V1 55 n i� exclusivB Property of CITY ' OPgRATOR � °waver such Name shall hav during the of the s' logos and de e a non_exclusly term of this El Segundo signs in connection e license to G° Et se9undo 1f Pacili with use by OPS TOR and aacalzty as a golf oo RATaR may identef Operation the the ini Course or an conjunction tials „AGC' or e the name ,American G gaged and operated OP at American Go C f Corporation w 1f ORATOR h other wor orpOratio or ds n 1 C°rPorat t is re or or names or si °go alone zone, that de names and the init. the name A designs owned b logos or I.als "AGO, „ meriCan Golf y affili dBSigns t°9ether area an owned b with se9undo Golf CilBd in the management RATaR y of its other °r an Acts affiliates {Colley' are the exclusi ° operation of the Cord1ngl ctively, the Property of E1 default on the partagrees that no right NRATOR Owned Nam OPERATOR or J. Of any s aC ssorIs'On of this Ag QQRATOR under this Agr remedy of CITY for any s or assi menu shall Bement' nor the operation of the 81 t ee right to use 0 n fe upon OXTY or itsll 9undo Golf Pac1ljty oR -osd Names zn rwise LA #9845_7687 -5520 vZ 56 f�87 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above written at El Segundo, California. CITY OF EL SEGUNDO Mayor ATTEST: City Clerk Approved as to form: AGC LLC HOLDING, a Delaware limited liability company Its: LA #4845- 7687 -5520 v1 57 CONCESSION AGREEMENT THIS CONCESSION AGREEMENT (this "Agreement" or this "Concession Agreement ") is entered into for reference as of 2004 by and between the CITY OF EL SEGUNDO ( "CITY ',), a California municipal corporation, and AGC LLC HOLDING ( "OPERATOR "), a Delaware limited liability company. RECITALS A. CITY and OPERATOR have contemporaneously entered into that certain agreement entitled "Management Agreement for the Operation and Maintenance of the El Segundo Golf Course and Related Facilities" (the "Management Agreement ") with respect to the management and operation of the E1 Segundo Golf Course and related facilities (the "E1 Segundo Golf Facility ") as described in the Management Agreement. B. Included in the E1 Segundo Golf Facility is a food and beverage dining facility (the "Restaurant ") as described in the Management Agreement. C. The Management Agreement provides that purchase and sale of alcoholic beverages at or by the Restaurant will be done pursuant to this Concession Agreement. (_!g9 LA #4824- 7329 -9456 v5 -1- D. The parties by this Concession Agreement desire to set forth the terms and conditions under which alcoholic beverages will be purchased and sold at the E1 Segundo Golf Facility. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 1. DEFINITIONS The following terms shall be defined as follows for the purposes of this Agreement: 1.1 Actual Liquor Costs. "Actual Liquor Costs" shall mean the actual amount paid by OPERATOR for the purchase of Liquor (cost of goods) to be sold at or by E1 Segundo Golf Facility. 1.2 Actual Gross Liquor Revenue. "Actual Gross Liquor Revenue" shall mean any and all revenues earned directly attributable to or from the sale of Liquor at or by the E1 Segundo Golf Facility. 1.3 Director. "Director" shall mean the City Manager of CITY or his authorized and appointed designee. LA #4824. 7329 -9456 v5 -2- 090 1.4 E1 Segundo Golf Facility. "E1 Segundo Golf Facility" shall mean all of the buildings, grounds, fixtures, structures, restrooms, equipment, computers, irrigation and controls, tools, vehicles, fencing and all appurtenances thereto involving the Golf Course, Storage Space, Pro Shop, Restaurant, maintenance building, Driving Range and any other area located on or at the real property described in Exhibit A to the Management Agreement. 1.5 Liquor. "Liquor" shall mean any alcoholic beverage as defined by Section 23004 of the California Business and Professions Code including, but not limited to, distilled spirits, beer and wine. 1.6 Operating Year. A. The first Operating Year shall commence on the date that the OPERATOR commences operations of the E1 Segundo Golf Course Facility and end on September 30, 2004 or if this Agreement is sooner terminated on such termination. B. Unless this Agreement has been sooner terminated, each Operating Year thereafter shall comprise the period of twelve (12) full calendar months, commencing LA #4824 - 7329 -9456 v5 -3- ± 1 9 g on October 1 and ending on September 30, or if this Agreement is sooner terminated on such termination. The final Operating Year shall end on the termination of this Agreement. 1.7 Restaurant. "Restaurant" shall mean the food and beverage dining facility located at the E1 Segundo Golf Facility and shown on the diagram attached to the Management Agreement as Exhibit B. 2. TERM OF AGREEMENT The term of this Agreement shall be coterminous with the term of the Management Agreement and shall automatically terminate concurrently with the termination of the Management Agreement. 3. PURCHASE AND SALE OF LIQUOR. OPERATOR, upon commencement of and throughout the term and renewal of this Agreement, shall engage in the sale of Liquor, including distilled spirits, wine and beer, at the E1 Segundo Golf Facility. Unless consented to in writing by the Director, Liquor shall be sold only at the Restaurant. OPERATOR, at its cost, shall be responsible for the purchase of Liquor, the procurement and renewal of its licenses from the Alcoholic LA #4824- 7329 -9456 v5 -4- 092 Beverage Control Board and the payment of taxes on or for the sale of Liquor. 4. OWNERSHIP OF ACTUAL GROSS LIQUOR REVENUE. The Actual Gross Liquor Revenue is owned by and the property of OPERATOR, not CITY. 5. Revenues and Payments. 5.1 Commission Fee to CITY. For each month of each Operating Year, OPERATOR shall pay to CITY a commission fee ( "Commission Fee ") as consideration for CITY's agreement to allow OPERATOR to act as the concessionaire for the Liquor sales at the E1 Segundo Golf Facility. The monthly Commission Fee to be paid by OPERATOR shall equal ten percent (10 %) of the Actual Gross Liquor Revenue, determined on an accrual basis, for each month of the Operating Year at issue. OPERATOR shall pay the Commission Fee to CITY on a monthly basis on or before the fifteenth (15th) day of the month immediately succeeding the month for which payment is being made. LA #4824- 7329 -9456 v5 -5- V 9 J 6. LICENSES OPERATOR shall obtain and maintain an on -sale general license issued by the Department of Alcoholic Beverage Control and all other state and local licenses and permits necessary for the lawful sale, distribution and consumption of Liquor by, on or at the El Segundo Golf Facility. Except as otherwise required by law, all such licenses and permits shall be issued in the name of OPERATOR. The costs, fees and charges incurred in obtaining and maintaining these licenses and permits shall be born by OPERATOR. On termination of this Agreement, unless OPERATOR has transferred such license to the person or other entity with which the CITY has contracted to have the liquor concession with respect to the E1 Segundo Golf Facility, OPERATOR shall forthwith surrender such licenses. 7. REPORTS 7.1 Annual Report. OPERATOR shall submit to CITY, for its review and approval, on or before forty -five (45) days after the end of each Operating Year, an annual report ( "Annual Report ") of the Actual Gross Liquor Revenue during the previous Operating Year. Each Annual Report shall be in such form and with such information, and in such detail, as the Director may from time to time reasonably specify. LA #4824 - 7329 -9456 v5 -6- 094 7.2 Monthly Reports and Transactions. By the twentieth (20th) day of the immediately succeeding month, OPERATOR shall provide CITY with monthly reports of the previous month's Actual Gross Liquor Revenue in such form and with such information and in such detail as the Director may from time to time reasonably specify. 7.3 Accounting Records. OPERATOR shall maintain a method of accounting for all the revenues and cost of goods in connection with the purchase and sale of Liquor at or by the Restaurant which shall be in accordance with generally accepted accounting principles and correctly and accurately reflect the gross Liquor receipts and disbursements. OPERATOR shall establish and implement adequate internal controls for the Liquor transactions. The accounting established for the Liquor transactions shall be separate from the accounting used for any other business operated by OPERATOR, except for the business described in the Management Agreement, and shall include the keeping of cash register tapes for the identification of day -to- day sales and any other accounting records that the Director reasonably specifies. LA #4824- 7329 -9456 v5 09 �" -7- 8. 7.4 Audit of Records. All documents, books and accounting records kept by OPERATOR pursuant to this Article 6 shall be open for inspection by CITY at any reasonable time for a period expiring three (3) years after the conclusion of the applicable Operating Year. In addition, CITY or its authorized representative may, from time to time, conduct an audit of the accounting of the Liquor transactions covering the three (3) Operating Years immediately preceding the date of the audit and observe the operation of the business related thereto. CITY will use reasonable efforts to minimize the interruption with the normal operation of the Restaurant during any inspection or audit performed pursuant to the provisions of this Section. 7.5 Public Records. All information obtained in connection with the CITY's inspections of the records or audits may be or become subject to public inspection and /or reproduction as public records. INSURANCE AND INDEMNITY 8.1 Insurance. OPERATOR shall obtain and keep in full force and effect 'during the term of this Agreement the insurance required of OPERATOR by the Management Agreement in accordance with and in compliance with LA #4824 - 7329 -9456 v5 _ 6 _ i� (C1 f 3 Sections 11.1A, B, C, D, F and G of the Management Agreement. 8.2 Indemnity. A. OPERATOR undertakes and agrees to defend, protect, indemnify and hold harmless CITY and all of its elective and appointive boards, commissions, officers, officials, volunteers, agents and employees from and against all suits, judgments, causes of action, claims, losses, demands and expenses, including, but not limited to, attorney's fees and costs of litigation arising from third party claims, damage and liability of any kind or nature whatsoever, for death or injury to any person or damage or destruction of any property of CITY, OPERATOR or third party, arising from the performance of or failure to perform under this Agreement by or on the part of OPERATOR or its officers, agents, subcontractors or employees. B. OPERATOR shall defend, indemnify and hold harmless CITY for any fines imposed by administrative regulatory bodies relating to the sale of Liquor at the E1 Segundo Golf Facility to the extent such arise from the acts or omissions of OPERATOR. LA #4824.7329 -9456 v5 -9- 0 9 7 0 C. CITY does not and shall not waive any rights against OPERATOR which it may have by reason of the indemnity provisions of Section 7.2 because of the acceptance by CITY of any of the insurance policies described in Section 7.1. The insurance required by Section 7.1 is not in satisfaction of OPERATOR's obligations under Section 7.2 which shall apply, regardless of whether or not the insurance policies referred to herein shall have been determined to be applicable. REPRESENTATIONS AND WARRANTIES 9.1 Accuracy of Representations and Warranties. OPERATOR and CITY represent and warrant to each other that each on its part is authorized to execute this Agreement and that the representations and warranties of such party contained in this Agreement do not contain any untrue statement of a material fact or omit any material fact necessary in order to make the statements contained herein not misleading or incomplete. 9.2 Survival of Representations and Warranties. OPERATOR and CITY represent and warrant to each other that the representations and warranties made by such party LA #4824- 7329 -9456 v5 -10- 0198 shall be true as of the date this Agreement is executed and thereafter and shall survive the execution, performance and termination of this Agreement. 10. OBLIGATION TO NOT DISCRIMINATE OPERATOR shall not discriminate against any person or group of persons on account of age, race, color, creed, religion, ancestry, national origin, gender or disability in the execution of any activities under this Agreement. Neither OPERATOR nor any person claiming under or through it shall establish or permit any prohibited practice of discrimination in the hiring of staff, selection of vendors and operators, the access to and use of the E1 Segundo Golf Facility or in the execution of any other activity under this Agreement. OPERATOR shall adopt and implement such policies, practices and procedures or modifications in policies, practices and procedures as are necessary to afford goods, services, facilities, privileges, advantages and accommodations to individuals with disabilities. OPERATOR shall at the meetings, pursuant to Section 6.11, report on such policies, practices and procedures and modifications, and on their implementation, and shall consult with the Director and take such further action as the Director may require. LA #4824- 7329 -9456 v5 11. MISCELLANEOUS 11.1 Entire Agreement. This Agreement and the documents expressly referred to herein constitute the entire agreement among the parties with respect to the subject matter hereof and supersede any prior agreement or understanding among the parties with respect to such subject matter. 11.2 Severability. If any provision of this Agreement or the application of such provision to any party or circumstance shall be invalid, the remainder of this Agreement or the application of such provision to other parties or circumstances shall not be effected thereby. 11.3 Notices. All notices, requests, demands, consents and other communications required or permitted to be given by this Agreement shall be in writing and personally delivered or placed in the United States Mail, properly addressed and with full postage prepaid, certified and return receipt requested. Such notices shall be deemed received at the earlier of (a) the date actually received, or (b) 5 business days after such mailing. Such notices shall be sent to the LA #4824 - 7329 -9456 v5 -12- 100 parties at the following addresses, unless other addresses are furnished by appropriate notice: If to CITY, to: City of E1 Segundo 350 Main Street E1 Segundo, California 90245 Attention: City Manager If to OPERATOR, to: AGC LLC Holding 2951 28th Street Santa Monica, California 90405 -2961 Attention: Paul W. Major 11.4 Assignment; Subcontract. OPERATOR may only assign any of its rights or delegate or subcontract any of its duties under this Agreement only in accordance with and subject to the provisions of Section 13.4 of the Management Agreement and only as a part of any such assignment, delegation or subcontract under the Management Agreement. LA #4824- 7329 -9456 v5 -13- 1 �, I 1 11.5 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall constitute one in the same instrument. 11.6 Heading. The article and section headings in this Agreement are for convenience of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof. 11.7 Construction. This Agreement shall be construed and enforced according to the laws of the State of California- without regard to any otherwise governing principals of conflicts of laws. This agreement shall be construed neutrally and not in favor of or against any party. 11.8 Amendment. This Agreement shall not be modified or amended except by written agreement executed by both of the parties. 11.9 Further Actions. Each party shall take such further actions as may reasonably be required to implement the provisions of this Agreement. 11.10 Independent Contractor. OPERATOR is and shall at all times remain as to the CITY a wholly independent contractor. The personnel performing the services LA #4824- 7329 -9456 0 -14- 10 under this Agreement on behalf of OPERATOR shall at all time under OPERATOR's exclusive direction and control. Neither CITY nor any of its officers, employees or agents shall have control over the conduct of OPERATOR or any of OPERATOR's officers, employees or agents, except as set forth in this Agreement. OPERATOR shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the CITY. OPERATOR shall not incur or have the power to incur any debt, obligation or liability whatever against CITY, or bind CITY in any manner. LA #4824- 732M456 v5 -15- 1 ( ] IN WITNESS WHEREOF, the parties have duly executed this Concession Agreement as of the date first set forth above at E1 Segundo, California. 5z CITY OF EL SEGUNDO Mayor ATTEST: City Clerk Approved as to form: AMERICAN GOLF CORPORATION, a California corporation Its: LA #4824 - 7329 -9456 v5 -16- 1 EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: Committees, Commissions and Boards AGENDA DESCRIPTION: Consideration and possible action regarding age requirement for Park Vista Senior Housing applicant, be changed from 55 to 62 years of age to be eligible. (Fiscal Impact none) RECOMMENDED COUNCIL ACTION: Recommendation: (1) Approve recommendation from Park Vista Senior Housing Corporation Board to change age requirement at Park Vista from 55 to 62 years of age. 2). Allow all residents currently on the waiting list for Park Vista Senior Housing as of April 6, 2004 be grandfathered in when space is available, even if they are not 62 years of age as of April 6, 2004. discuss and take other action related to this item. The Park Vista Senior Housing Corporation is requesting that Council consider changing the age requirement for entry into Park Vista Senior Housing. The original age for entry into Park Vista Housing was 62; the age was changed at some time by one of the property management companies that have managed Park Vista. The board would like to see it changed back to 62 because there are so many seniors over 62, on fixed incomes that need housing. Some of the seniors under 62 still work, and are not on a fixed income, so they have more flexibility in their housing choices The Senior Housing Board attorney believes it would be necessary to "grandfather" in any residents already on the waiting list who are 55 years of age or above, and any and all residents who live at Park Vista who are 55 and above. ATTACHED SUPPORTING DOCUMENTS: Operating Budget: n/a Account Number: n/a Amount Requested: n/a Project Phase: Appropriation Required: _Yes X No ORIGINATED: �P,L. DATE: Stacia Mancini, Director of Recreation and Parks REVIEWED BY: DATE: Mani Rtrpnn City 3 xo� Z Ow �m �w w m I- w� o� Uw 3 W�K S O N J C 6 a LL O N a O an Q LL O W H !8 p9 84 n2 �1�Q m 7<'H H11� N r ry m O N w 0 Z LL u W a a z v i w 2 w LL o Sao ¢ ?a w v=i (u T, Q Z Kzor 02 zz 40 .j60629 1.LL U $ O W y wz Z 2 O LL UYrc¢U F F w J Z ry V Z W QQZ w IL N ¢ 2 LL LL wnKw 2 pNrOO �ibWj2 3U3 KJNNN o w m g g i i u' o o W. z w LL 8 z nw '¢ u LL 1Q�1Q�� O LL W ?) 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Z f W 2 Z S U z�¢� N b b F Z ~ Z U Z LL g W J w N W y Q w oc�s5�°Q-uP w rc�¢a �pJrc °s��°wazo w�aN O¢KZ OiarwUt(�pLLi(�Ui�LLaJ Un Ana UnLL¢zxti2 U ? w rc�uS 'uS0 0 N b n F w f z J a O= w 0 N Y W_ U O O 0 e m e 5 c q o d — E E g 5 p ` E n � °m t N m ' o E c x E U a $ ° W N cur w w �Z dW N S nS a a € " Ohcii, a E'� Uu°i .. co c W i Q 0 Q O .0 II _ m `CS d S A n= o a3ynf pao�U Ed n ° 5 E d E i `m EwL E,S my�nh 5 E c a €'�$ N E cvT �O '0 N E m N E q S E E ¢d` a d U E d m o w z a � W N � Q � U O E U $5 5 m° m d a E udi � m w d V1 d' W L F W p c N z i ° w O O U W H II ll a 2 O O 1 o 4 CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 3/5/2004 THROUGH 3/25/2004 Date Payee Amount Description 3/10/04 West Basin 735,874.44 H2O Payment 3/11/04 Health Comp 2,062.80 Weekly claims 3/5 3/11/04 Employment Development 43,303.36 State Taxes PR 19 3/11/04 IRS 210,703.17 Federal Taxes PR 19 3/12/04 PGC El Segundo LLC 31,791.28 Golf Course Payroll Transfer 3/15/04 Federal Reserve Bank 100.00 Savings Bond I Series 3/15/04 Federal Reserve Bank 950.00 Savings Bond EE Series 3/22/04 Health Comp 4,276.27 Weekly claims 3/12 3/25/04 Health Comp 1,140.66 Weekly claims 3/19 3/5- 3/18/04 Workers Comp Activity 27,739.21 SCRMA checks issued 1,057,941.19 DATE OF RATIFICATION: 4/6/04 TOTAL PAYMENTS BY WIRE: Certified as to the accuracy of the wire transfers by: Depuvkeas#rer Date � o ,,�Dirtctor of Administrative Service D e Cityflan&or Date Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo. 1,057,941.19 107 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MARCH 16, 2004 — 5:00 P.M. 5:00 P.M. SESSION CALL TO ORDER — Mayor Gordon at 5:00 p.m. ROLL CALL Mayor Gordon Mayor ProTem Jacobs Council Member Gaines Council Member McDowell Council Member Wernick CLOSED SESSION: Present Present Present — arrived at 5:05 p.m. Present — arrived at 5:05 p.m. Present The City Council moved into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et sue.) for the purposes of conferring with the City's Real Property Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators; as follows: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(a)) — 3 matters. Bressi v. City of El Segundo, LASC No. BC288292 Bressi v. City of El Segundo, LASC No. BC288293 Preston v. City of El Segundo WCAB No. MON 0292740 CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code §54956.9(b): -0- potential case (no further public statement is required at this time); Initiation of litigation pursuant to Government Code §54956.9(c): -3- matters. DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957) — -0- matters CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6) — 0 matters CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8):-4- matters. Real Property Negotiator: Mary Strenn, City Manager Potential purchase price for four (4) properties for the Douglas Street extension project: APN Nos.: 1. 4138 -011 -019 2. 4138 -010 -010 3. 4138- 011 -006 4. 4138 - 011 -036 5 MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO. 1 108 SPECIAL MATTERS — None. Council moved into open session at 6:59 P.M. MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO. 2 BUJ REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MARCH 16, 2004 — 7:00 P.M. 7:00 P.M. SESSION CALL TO ORDER — Mayor Gordon at 7:00 p.m. INVOCATION — Pastor Mark Koukl of Hope Chapel del Rey PLEDGE OF ALLEGIANCE — Council Member John Gaines PRESENTATIONS — (a) Mayor ProTem Jacobs presented Commendations to Joe Harding, General Manager of the Hacienda Hotel; Marisa Vega, Sales Manager of the Hacienda Hotel; Donn Cottom of Sopp Chevrolet for running their 4`h LA Marathon while raising monies on behalf of Rotary International's effort to eradicate polio worldwide by the 2005; and commendation to Michael Herbach for running his 15` LA Marathon while raising monies on behalf of Rotary for the Children of the Dump in Tijuana Mexico. 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. Kitty Crowley, resident, spoke regarding article B -1 and a FPPC ruling. She stated that John Gaines should remove himself from discussion on the item if he has received any monies from the Thomas Properties Group. A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO. 3 ilU MOVED by Council Member Wernick, SECONDED by Council Member McDowell to read all ordinances and resolutions on the Agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 B. SPECIAL ORDERS OF BUSINESS 1. Consideration and possible action (Public Hearing) on the appeal of the Planning Commission's decision to approve Environmental Assessment No. 632 Subdivision No. 03- 8 for a one -year extension of a previously approved Vesting Tentative Map No. 53570. The Tentative Tract Map is for a 26 -lot subdivision in the Corporate Campus Specific Plan area, located at 700 -800 North Nash Street. Applicant: TPG -El Segundo Partners, LLC. Property Owner: Federal Express Corporation. Appellant: Kilroy Realty Corporation and Citizens Against Gridlock in El Segundo (CAGES). Council Member Wernick left the dais due to a potential conflict regarding her spouse's employer (Federal Express). Council Member Gaines and the City Attorney stated they had received no written or verbal communication from the FPPC with respect to the issue raised by Kitty Crowley. Mayor Gordon stated this is the time and place hereto fixed for a public hearing regarding on the appeal of the Planning Commission's decision to approve Environmental Assessment No. 632 Subdivision No. 03 -8 for a one -year extension of a previously approved Vesting Tentative Map No. 53570. The Tentative Tract Map is for a 26 -lot subdivision in the Corporate Campus Specific Plan area, located at 700 -800 North Nash Street. Applicant: TPG -EI Segundo Partners, LLC. Property Owner: Federal Express Corporation. Appellant: Kilroy Realty Corporation and Citizens Against Gridlock in El Segundo (CAGES). City Clerk Mortesen stated that proper notice was completed and one written communication had been received in the City Clerk's Office. Jim Hanson, Community, Economic and Development Services Director, gave a report. Barbara S. Blinderman of Moskowitz, Brestoff, Winston & Blinderman LLP, attorney for the Appellant, stated the objections to the approval of the project. Dale Goldsmith, Attorney for the Applicant, gave a brief history of the project and the reasoning behind the extension of the project. Joe Brandin, resident, spoke regarding the pending litigation between Kilroy and Thomas Properties. Liz Garnholz, resident, spoke regarding CAGES and what it stands for (Citizens Against Gridlock in El Segundo). Peggy Tyrell, resident, stated CAGES members were volunteers Council consensus to close the public hearing. MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO, 4 111 Mark Hensley, City Attorney, clarified the letter that requested an extension of the Tract Map approval. The project was approved pursuant to an ordinance adopted by Council on January 2, 2002, but a referendum was filed and the entire project including the Tract Map was suspended until an election was held. Therefore the Tract Map did not received final approval until the referendum election was held June 18, 2002, and certified in July of 2002. Mark Hensley, City Attorney, read the following: RESOLUTION NO. 4368 A RESOLUTION OF THE EL SEGUNDO CITY COUNCIL UPHOLDING THE PLANNING COMMISSION'S DECISION, THEREBY APPROVING ENVIRONMENTAL ASSESSMENT NO. 632 AND SUBDIVISION NO. 03 -8 FOR A FIRST EXTENSION OF VESTING TENTATIVE TRACT MAP NO. 53570 FOR PROPERTY AT 700 -800 NORTH NASH STREET MOVED by Council Member Gaines, SECONDED by Mayor ProTem Jacobs to adopt Resolution No. 4368 upholding the Planning Commission's decision, thereby approving Environmental Assesment No. 632 and Subdivision No. 03 -8 for a first extension of vesting Tentative Tract Map No. 53570 for property at 700 -800 North Nash Street. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0/1. COUNCIL MEMBER WERNICK NOT PARTICIPATING DUE TO A POTENTIAL CONFLICT REGARDING HER SPOUSE'S EMPLOYER. Council Member Wernick returned to the dais. C. UNFINISHED BUSINESS 2. Consideration and possible action amending the El Segundo Municipal Code (ESMC) regarding uniform newsrack locations and newspaper placement. Mayor Pro Tern Jacobs left the dais due to a potential conflict regarding her real estate interests on Main Street. Jim Hansen, Director of Community, Economic and Development Services, gave a report. Mark Hensley, City Attorney, read the following: ORDINANCE NO. 1375 AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE SECTION 9 -4 -160 AND ADDING SECTION 9 -4 -165 TO THE EL SEGUNDO MUNICIPAL CODE TO REGULATE PLACEMENT OF NEWSPAPERS AT UNIFORM NEWSRACK LOCATIONS. Council Member McDowell introduced Ordinance No. 1375 Mayor Pro Tern Jacobs returned to the dais. MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO. 5 1� Consideration and possible action to appoint members to the Water and Sewer Rate Task Force — Fiscal Impact: None. Mary Strenn, City Manager, gave a report. MOVED by Council Member McDowell, SECONDED by Mayor ProTem Jacobs to (1) Approve the appointment of two (2) Council Members, Gaines and McDowell; Don Camph, El Segundo Employers Association; Joe Harding, Chamber of Commerce; El Segundo Residents Association, Eric Johnson; At Large, Bill Bue and Mike Rotolo; City Manager; Public Works Director; and the Director of Administrative Services to the Water and Sewer Rate Task Force. MOTION PASSED BY THE FOLLOWING VOTE: AYES: MAYOR GORDON, MAYOR PRO TEM JACOBS, COUNCIL MEMBERS GAINES AND MCDOWELL; NOES: COUNCIL MEMBER WERNICK. 4/1. 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. 4. Approved Warrant Numbers 2539282 to 2539591 on Register No. 11 in the total amount of $1,481,405.99 and Wire Transfers from 2/20/2004 through 3/4/2004 in the total amount of $268,770.52. Authorized staff to release. Ratified: Payroll and Employee Benefit checks; checks released early due to contracts or agreement; emergency disbursements and /or adjustments, and wire transfers. 5. Approved City Council Meeting Minutes of March 3, 2004. 6. Approved the SPCA Contract No. 3312 for animal sheltering services and authorized the City Manager to execute. 7. PULLED FOR DISCUSSION BY COUNCIL MEMBER WERNICK 8. Accepted Los Angeles County Regional Grant for $80,000 and use the funds for the lighting and portable pieces at the El Segundo Skate Board Park. 9. Authorized the submission of a grant proposal to the Department of Homeland Security, USFA/Federal Emergency Management Agency (FEMA) under the Assistance to Firefighters Grant Program for $244,895. Authorized the Fire Chief and /or designee (Emergency Services Coordinator) to act as the authorized agent for the electronic grant submission. Fiscal Impact: $24,500 matching requirement in Fiscal Year 04/05. 10. PULLED FOR DISCUSSION BY COUNCIL MEMBER MCDOWELL MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO. 6 11. l 11. Authorized the City Manager to execute Professional Services Agreement No. 3313 on behalf of the City with Hinderliter, De Llamas & Associates (HDL) for sales and use tax audit and information services. Adopted Resolution No. 3369 authorizing examination of sales & use tax records. 12. Approved request by Angeles Contractor to withdraw its Bid. Considered Bid from A.W.I. Builders, Inc. non - responsive. Awarded Contract No. 3314 to NSA Construction Group for construction work of the Residential Sound Insulation Program's Bid Group 4 (72 residences). Estimated construction cost and retention: $1,393,913. Authorized the City Manager to execute the contract in a form approved by the City Attorney. 13. Accepted the project for construction of the Downtown Specific Plan Improvements — Project No. PW 03 -03 approved Capital Improvement Program (Final contract amount: $ 3,538,676.51) as complete. Authorized the City Clerk to file the City Engineer's Notice of completion in the County Recorder's Office. MOVED by Council Member Gaines, SECONDED by Council Member McDowell to approve Consent Agenda Numbers 4, 5, 6, 8, 9, 11, 12 and 13. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0. MAYOR PRO TEM JACOBS NOT PARTICIPATING ON ITEM 13 DUE TO HER REAL ESTATE INTERESTS ON MAIN STREET. CALL ITEMS FROM CONSENT AGENDA 7. Consideration and possible action regarding award of contract for the El Segundo Skate Board Park located at 405 East Grand Avenue — Approved Capital Improvement Program — Project No. PW 04 -02 — (Contract amount = $400,395) MOVED by Council Member Wernick, SECONDED by Council Member McDowell to award Contract No. 3315 to the lowest responsible bidder, Channel Islands Paving, Inc for the El Segundo Skate Board Park located at 405 East Grand Avenue — Approved Capital Improvement Program — Project No. PW 04 -02, (Contract amount: $400,395). Authorized the City Manager to execute the construction contract on behalf of the City. Authorized (a) $46,000 for Optional Bid Items Nos. 1 and 2 and (b) $20,605 for construction contingencies. MOTION PASSED BY UNANIMOUS VOICE VOTE, 5/0. 10. Consideration and possible action regarding executing an agreement with Civica Software for purchase and implementation of a content management system for the City Website. MOVED by Council Member McDowell, SECONDED by Council Member Gaines to authorize the City Manager to execute Agreement No.3316 with Civica Software for a Content Management System by "piggybacking" on the City of Montclair Request for Proposal (RFP) and subsequent award process. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0. F. NEW BUSINESS — MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO.7 i. � 3 Mayor Pro Tern Jacobs left the dais due to a potential conflict regarding her real estate interests on Main Street. 14. Consideration and possible action regarding a new Alcoholic Beverage Control (ABC) license for on -site sale and consumption of alcohol (Type 41 — On -Sale Beer and Wine for a Bona Fide Public Eating Place) at a new restaurant, Good Stuff, located at 131 West Grand Avenue, EA No. 637 and AUP No. 04 -01. Applicant: Cris Bennett. MOVED by Council Member McDowell, SECONDED by Council Member Wernick not to protest the issuance of the new ABC license for the sale of beer and wine at Good Stuff Restaurant. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0. MAYOR PROTEM JACOBS NOT PARTICIPATING DUR TO A POTENTIAL CONFLICT REGARDING HER REAL ESTATE INTERESTS ON MAIN STREET. G. REPORTS — CITY MANAGER — NONE H. REPORTS — CITY ATTORNEY — NONE REPORTS — CITY CLERK — Announced that the last day to register to vote in the upcoming April 13, 2004 Municipal Election was March 29 and that April 6 was the last day Absentee Ballot applications could be received in the City Clerk's Office. REPORTS — CITY TREASURER — NONE K. REPORTS — CITY COUNCIL MEMBERS Council Member McDowell — Spoke regarding bus lines and potential closings and announced hearings that could be attended. He also requested, with Council concurrence, that staff look into the feasibility of expanding the downtown shuttle routes. Council Member Gaines — Announced a meeting of the CIP Advisory Committee and stated that the public should contact City Hall with any Capital Improvement projects they believe should be added to the list for consideration. Council Member Wernick — Announced a list of hearings on the City of Los Angeles integrated resources plan. She also spoke regarding a variance hearing that LAX is holding. Mayor Pro Tern Jacobs — Announced a public workshop on modernization of the Airport. Mayor Gordon — None MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO. 8 L j PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have receive 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. Angelica Roque of the Tree Musketeers requested the City Council to declare the California Sycamore the official City of El Segundo tree. Emma Duncan, resident, spoke regarding the soccer fields, injuries, and delay of construction of the new fields. Jan Crucikshank, resident, spoke regarding the soccer fields, and injuries and responsibility for those injuries. Also stated that she does not believe soccer field should be built east of Sepulveda. Joe Brandin, resident, spoke regarding the delay withThomas Properties project. Liz Garnholz, resident, spoke regarding the Airport Commission Meetings and the former Honeywell property. Peggy Tyrell, resident, spoke regarding the meetings held to decide the types of trees to be planted on Main Street She also expressed concern regarding the maintenance that Sycamore trees will need. Council consensus to agendize the Tree Musketeers request to declare the California Sycamore the official City of El Segundo tree. MEMORIALS — Carl Damicone, Howard Sharpe, and Cravens Douglass Hanson, Logan David Hanson, born February 25, 2004, received thoughts and prayers for a speedy recovery. CLOSED SESSION - NONE ADJOURNMENT at 8:38 p.m. Cindy Mortesen, City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING MARCH 16, 2004 PAGE NO. 9 Ii EL SEGUNDO CITY COUNCIL ITEM STATEMENT MEETING DATE: April 6, 2004 AGENDA HEADING: Consent Consideration and possible action regarding a report on the power industry and its impact on the City's Utility User Tax revenues from the El Segundo Power Plant located at 301 Vista Del Mar. COUNCIL ACTION: 1) Receive and file report on power industry and its impact in El Segundo's revenues. 2) Alternatively discuss and take other action related to this item. BACKGROUND & DISCUSSION: As was discussed in the FY 2003 -2004 first quarter financial review on February 17, 2004, gas utility user's taxes have declined significantly. Through five months in FY 2003 -2004, consumption of natural gas has continued to decrease. Revenue through five months of FY 2003 -2004 is only $976,800 or 21.7% of budget with 41.7% of the fiscal year complete. This revenue source is a combination of gas utility user's taxes collected from all sources including the local power plant. There are many variables which can cause a decrease in natural gas consumption including changes in natural gas prices; limitations imposed by the California Independent Systems Operator (ISO); decreases in power sales on the ancillary market; changes in weather patterns; and California legislation. Additionally, a local plant was offline for most of November 2003. ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: None Operating Budget: Amount Requested: Account Number: Project Phase: Receive and File report Appropriation Required: _ Yes X No ORIGINATED BY: DATE: " � 4�e 3 -3 /-0 � Bre . %mlee, Director Administrative Services REVIEWED BY, DATE: 3 Mary Strenn, City Manager i 117 X BACKGROUND AND DISCUSSION (Continued): Staff has been in discussions with representatives at the local power plant and the California Independent System Operator (Cal ISO) to determine if the revenues will continue to come in below budget. Through these discussions and research by staff, tracking sources have been identified. One source is Cal ISO's website that tracks the price of power and whether or not a power plant is available to the grid. If a plant is available to the grid, there are several factors that will help determine whether or not a power plant will be operational. One factor is if the price of power exceeds the cost of running the power plant, then it is profitable to run the plant. The Cal ISO website tracks this cost of power, which can help identify if the price of power exceeds the cost of operating the plant. A second factor is whether or not the Cal ISO determines that there is a need for more power to be generated in the State. If there is a need for additional power, then a plant may be required by Cal ISO to operate. Another factor is whether or not a plant has a contract requiring it to generate power. Many plants entered into long -term contracts during the energy crisis in 2000 -2001 and are required by contract to operate. Additionally, there are other sources of power competing with natural gas power plants such as hydroelectric, nuclear and power imported from outside the State of California. The energy crisis of 2000 -2001 was a positive situation for the local power plant in which there was very little water and therefore less hydroelectric power available to the grid, the weather was unusually hot, nuclear and other power plants were down for maintenance, and there was little imported power. This increased the demand for power generated by natural gas power plants. Locally, El Segundo benefited by an increase in gas Utility User's taxes generated by an increase in the natural gas purchased to generate electricity. Staff is in the process of arranging meetings with representatives from both the local power plant and the Cal ISO. It is expected that the summer months will show an increase in revenues. If this does not materialize and revenues continue to come in below expectations, budget adjustments maybe recommended at the midyear review on May 18, 2004. 18 EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding an amendment to the El Segundo Municipal Code regarding uniform newsrack locations and newspaper placement. RECOMMENDED COUNCIL ACTION: 1) Second reading by title only and adoption of Ordinance; or, 2) Alternatively, discuss and take other action related to this item. BACKGROUND & DISCUSSION: On March 16, 2004, the City Council considered the above referenced amendment. The amendment establishes categories of newspapers and prioritizes those categories for placement in the uniform locations. The amendment also gives first preference to newspapers determined by court order to be a newspaper of general circulation within the City's jurisdiction. The Ordinance is presented for a second reading and adoption. If adopted without change, the provisions will become effective in 30 days. ATTACHED SUPPORTING DOCUMENTS: A. Ordinance No. 1375 FISCAL IMPACT: Operating Budget: N/A Amount Requested: N/A Account Number: N/A Project Phase: N/A Appropriation Required: _ Yes x No ORIGI TED BY: DATE: Ja es . Hansen, Director of Community, Economic and Development Services RE -my: DATE: er �t�y 115 7 Attachment A ORDINANCE NO. 1375 AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE SECTION 9-4 -160 AND ADDING SECTION 9-4 -165 TO THE EL SEGUNDO MUNICIPAL CODE TO REGULATE PLACEMENT OF NEWSPAPERS AT UNIFORM NEWSRACK LOCATIONS. The city council of the city of El Segundo does ordain as follows: SECTION 1: El Segundo Municipal Code ( "ESMC") § 9 -4 -160 is amended to read as follows: "9-4 -160: UNIFORM NEWSRACKS. A. By resolution, the council may from time to time establish uniform newsrack locations. The council must first hold a public hearing for which notice must be sent at least fifteen (15) days in advance to all persons requesting notice, or whose name and address appears on an existing newsrack in the subject location, and after such hearing must find that the location carries a substantial volume of pedestrian or vehicular traffic, that uniform newsracks are feasible at the location, and that it is in the public interest for such newsracks. B. The resolution must describe the location; designate the particular point(s) at that location where uniform newsracks may be installed; specify the maximum number of uniform newsracks to be allowed at the location; and specify the style, size, color or other attributes required of uniform newsracks at the location. Such specification should not require uniform newsracks made by any particular manufacturer. The resolution may direct the administrator to install a kiosk(s), pedestal(s), or other support structure to accommodate a stated number of newsracks. C. No person may install a uniform newsrack at a uniform newsrack location without first obtaining a uniform newsrack permit from the administrator. D. Upon the adoption of a resolution by council establishing a uniform newsrack location, interested persons may apply for such permit. The administrator must hold all such applications for thirty (30) days after the date the resolution was adopted and may then issue all permits applied for up to the maximum number established, if any, in the resolution. E. No fee will be charged for the uniform newsrack permit. F. A uniform newsrack permit will, in addition to all other provisions of this Paqe 1 of 4 section, be conditioned with all other requirements of this chapter." SECTION 2: A new § 9 -4 -165 is added to the ESMC to read as follows: "9-4 -165: PRIORITY SYSTEM FOR UNIFORM NEWSRACK PERMITS. A. Uniform Newsrack permits are determined on a priority system as follows: The administrator will give first priority to newspapers that are adjudicated to be newspapers of general circulation in the city of El Segundo in accordance with Government Code §§ 6020, et seq. when applicable law requires the city to publish its legal notices in such newspapers. 2. The administrator will give second priority to all other newspapers that are not adjudicated to be newspapers of general circulation within the city of El Segundo. B. Should there be a conflict between newspapers within the same priority seeking the same uniform newsrack location, and there are insufficient uniform newsrack locations to accommodate the competing newspapers after first filling as many uniform newsrack locations as possible by utilizing the criteria set forth above, then the administrator will assign uniform newsrack locations at random by placing the names of all applicants for the remaining spaces at a uniform newsrack location into a container from which the names will be drawn one at a time until the remaining uniform newsrack locations are assigned. Such drawing is open to the public at a time and date designated by the administrator. C. Applications remaining after assignment of all uniform newsrack locations must be denied. Where fewer applications are received than the maximum number of spaces allowed by the resolution, permits for the remaining spaces may be allotted on a first -come, first -served basis. D. Annually, during December, the administrator must use the above criteria for assigning uniform newsrack locations if the priorities of newspapers change; newsracks are abandoned; or permittees fail to renew a permit." SECTION 3: Repeal of any provision of the ESMC herein will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. Page 2 of 4 i21 SECTION 4: If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the city council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 5: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 6: This Ordinance will become effective on the thirty -first (31st) day following its passage and adoption. PASSED AND ADOPTED this _ day of 2004. Mike Gordon, Mayor Pane 3 of 4 1zn ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. was duly introduced by said City Council at a regular meeting held on the day of , 2004, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of 2004, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Cindy Mortesen, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney By Karl H. Oerger, Assistant City Attorney Page 4 of 4 123 EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to award a contract for core drilling sidewalk for the installation of Heritage Stones along Main Street and Grand Avenue in the Downtown area — Project No. PW 04 -03 - Approved Capital Improvement Program - (Contract amount = $43,812). RECOMMENDED COUNCIL ACTION: Recommendation — (1) Award contract to the lowest responsible bidder, Malibu Pacific Tennis Courts, Inc.; (2) Authorize the City Manager to execute the construction contract on behalf of the City; (3) Alternatively discuss and take other action related to this item. BACKGROUND & DISCUSSION: On February 17, 2004, the City Council adopted plans and specifications and authorized staff to advertise the project for receiving construction bids. On March 16, 2004, the City Clerk received and opened the following bids: 1. Brandt Development LTD $82,756 2. Malibu Pacific Tennis Courts, Inc. $43,812 Malibu Pacific Tennis Court, Inc., has completed a Public Works project for the City to the satisfaction of staff. Staff also received favorable references for the lowest bidder and recommends award of contract to Malibu Pacific Tennis Courts, Inc., in the amount of $43,812. ATTACHED SUPPORTING DOCUMENTS: None. FISCAL IMPACT: Capital Improvement Program: $45,000 Amount Requested: $43,812 Account Number: 301 - 400 - 8201 -8573 Project Phase: Award of contract Appropriation Required: No ORIGINAT:ED Y, DATE: March 30, 2004 David Johnson, n rim Director of Public Wor s REVIEWED BY: DATE: �r Mary StreheCity Manaae 04 -06 -04 Award of Ct iratl for Core drill for Installation of Hentage Stones in Main Street and Grand Avenue in the Downtown Area PW 04 -03 8 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE: April 6, 2004 AGENDAHEADING: ConsentAgen( Consideration and possible action regarding a request for City Council to approve Public Works Project No. PW 04 -05 for emergency repairs with Advanced Fuel Filtration Systems, Inc., for repairs to the City's Maintenance Facility at 150 Illinois Street on the underground fuel storage system (Fiscal Impact = $9,645). RECOMMENDED COUNCIL ACTION: Recommendation — (1) Adopt resolution declaring emergency in accordance with Public Contracts Code Section 20168 by 4 / 5s vote; (2) Approve contract with Advanced Fuel Filtration Systems, Inc.; (3) Authorize the City Manager to sign the contract on the City's behalf; and (4) Alternatively discuss and take other action related to this item. BACKGROUND & DISCUSSION: Advanced Fuel Filtration Systems, Inc. performs annual testing and certification of the Maintenance Facility underground fuel storage system as specified by SB 989. (Background and discussion continued on the next page......) ATTACHED SUPPORTING DOCUMENTS: 1. Draft Resolution 2. Exhibit "A" Scope of Work FISCAL IMPACT: Operating Budget: $9,645 (Buildings, Repairs) Amount Requested: None Account Number: 001 - 400 - 2601 -6215 Project Phase: Appropriation Required: No DATE: March 30, 2004 Man A' ey 0606-04 Appmw Pubic Works Pmiecl No PW 04 -0 for Emeryenty RepaYS with AUrance] Fuel FYtralpn Sytleme, InC., for RapaiS b Me CWS MaMmanu FacilRy pnde,pmunE Fuel SNra,,,e Syetem 9 J 1 ..: J BACKGROUND & DISCUSSION: (continued) In 2003, Advanced Fuel Filtration Systems, Inc performed the test and the system failed due to leaks in the secondary side of the containment system. The report was given to the City in the fall of 2003 and a requisition was approved to perform these repairs as an emergency repair for the amount of $8,400. The leaks were attributed to poor soils, site conditions and /or earth movement. The first series of repairs were recently completed and during the final re- testing using a gas test, additional leaks were discovered. In order to perform repairs of the additional leaks, the site must be excavated. It is recommended that this Public Works Contract No. PW 04 -05 be approved with this vendor since this is a continuation of the on -going repairs and the work is essential to comply with SB 989. The total cost of the repairs, including the system re -test, replacement of concrete surfaces, and implementation contingencies, is $9,645. OL0"4 Appmrc Publc Wmka PmjM No 04- N for Emergency Repair wM MnncM Fu el ��/� Fitralbn 5yNmsm c.,Iq RWMWMe CW'a MgMenanceFacA4UnOegMuMFue )SWrae5yabm `6 t` Fel Mr Cil 151 El (31 (3) Re De Ad prc D) Repair to E EXHIBIT A Scope of Work d Fuel Filtration Systems, Inc. ;nvironmental Supply Warehouse ffuel,com .- www.aesw.com • www.advservices.net fate of Calllornia Contractor license No. 769519 Tank Systems 4o Facilitate SB989 Testing. Jel roject No.: MS -22766 submit the following proposal regarding the above referenced Saw cut, breakout an excavate $2,000.00* Repair secondary lin $3,000.00* (If repairs require more than two ten ('10) hour days then an additional cost of $l 0.00 per hour plus the cost of materials will be Meted.) Parts $$00.00 Backfill and concrete $1,000.00* 2) SB 989 Re- Testing cf FuelineSystems (includes the following). • (1) Secondary Mping Testing $145.00 / each $145,00 I 3) Plans and Permit Fdcs $1,000.00 TOTAL ESTIMATED PROJECT COST (Warranty on pans and labor is 181 days) Notes: " Price per section basis Purring lines if needed put included Corpora!® Mee- 1275 Grajohife Drive. Corona Calilomia 9$881 Tel: (909) 520.9270 • Fax: (909) 520.92715 • !National: (809) 650.8680 FEB -24 -2004 15:48 309 606 5439 57,645.00 Cantral California: Nationai: (800) 850 -8680 127 137!, P. 02 RESOLUTION NO. A RESOLUTION ADOPTED PURSUANT TO PUBLIC CONTRACTS CODE § 20168 FINDING THAT AN EMERGENCY EXISTS WITHIN THE CITY AND AUTHORIZING CONTRACTING WITHOUT THE NEED FOR BIDDING PURSUANT TO § 22050. The City Council does resolve as follows: SECTION 1: The City Council finds and declares as follows: A. Pursuant to Public Contracts Code ( "PCC ") § 20168, the City Council may, upon a four -fifths vote, declare that public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property because of an emergency. B. In accordance with PCC §§ 20168 and 22050, the City Council may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. C. In October 2003, the City conducted an inspection of its underground storage tank ( "UST ") systems in compliance with Health & Safety Code §§ 25280, et seq. D. During the course of this inspection, the City's contractor discovered that there was a possible internal fuel leak from one of the City's USTs. E. In compliance with applicable law, and to protect public, health, safety and welfare, the City took immediate emergency action to begin repairing the tank in accordance with El Segundo Municipal Code ( "ESMC ")§ 1 -7 -12. F. Due, in part, to the City's actions, it does not appear that the leak has breached the outer shell of the UST. However, an immediate and imminent threat of such an occurrence remains. Such a fuel leak could contaminate surrounding property and threaten public health, safety, and welfare. G. The UST, and its continuing threat, constitutes a sudden, unexpected occurrence that poses a clear and imminent danger to the City, its citizens, and employees. This threat requires immediate action to prevent or mitigate the loss or impairment of essential public services. H. Under such emergency conditions, the City Council finds that the delay resulting from public bidding would imperil essential public services. -1- 126-1 SECTION 2: In light of the emergency described above, the City Council directs the City Manager, or designee, to take all steps necessary to protect public health, safety and welfare including, without limitation, awarding contracts in accordance with PCC § 22050. SECTION 3: This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution. SECTION 4: The City Council will review this emergency action at its next regularly scheduled meeting and at every regularly scheduled meeting thereafter until the work described above is completed. The Council must determine by a four -fifths vote that there is a need to continue the work at each meeting. PASSED AND ADOPTED this _ day of 2004. APPROVED AS TO FORM: Mark D. Hensley, City Attorney 0 Karl H. Berger, Assistant City Attorney 2_ Mike Gordon, Mayor 129 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five; that the foregoing resolution, being RESOLUTION NO. was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the day of 2004, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTENTION: NOT PARTICIPATING: WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of 2004. Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) -3- 1JU EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to approve a License Agreement with the U.S. Air Force Base 615` Air Base Group for installation of a communication conduit across El Segundo Boulevard, between Aviation Boulevard and Douglas Street. RECOMMENDED COUNCIL ACTION: Recommendation — (1) Approve the License Agreement; (2) Authorize the City Manager to execute the agreement on behalf of the City; (3) Alternatively discuss and take other action related to this item. BACKGROUND & DISCUSSION: The U.S. Air Force Base has requested a License Agreement from the City to install an underground communication conduit across El Segundo Boulevard, between Aviation Boulevard and Douglas Street. The conduit will provide a link between the Aerospace Corporation, south side of El Segundo Boulevard, to the Air Force Base facility north of El Segundo Boulevard. Based on the 1,040 lineal foot length of the crossing and consistent with the $0.10 /foot/year rate charged to other companies in the area that have similar communication links, the license fee has been established as $104 /year. ATTACHED SUPPORTING DOCUMENTS: 1. License Agreement. 2. Location map. FISCAL IMPACT: Annual revenue of $104. Capital Improvement Program: Amount Requested: Account Number: Project Phase: ORIGIN D BY1 I C„'J � � DATE: March 30, 2004 David Johnson, Interi ;birector of Public Works DATE: Mary Stren , City Manager J O 04 -06-04 Approve License Agreement with the U.S. Nr Force Base 61 "Air Base Group for Installation of a Communication Center across El Segundo Boulevard, between Aviation Boulevard and Douglas Street 1�i Prepared by: T. Mania /J.R. Dispoto Prepared for: Bellur Devaraj Submitted for 6 April 2004 City Council Meeting Date Prepared: 17 March 2004 Los Angeles Air Force Base Overview of Communications Installation Project In support of SAMS Redevelopment Program In conjunction with the SAMS Program — the redevelopment of the Los Angeles Air Force Base ( LAAFB), the U. S. Air Force (USAF) has initiated a project to construct several buildings on LAAFB property identified as "Area B ". The boundaries of Area B consist of Aviation Boulevard, to the East, El Segundo Boulevard, to the South, Douglas Street to the West and the Northrop Grumman facility to the North. To properly support voice and data communications within the new LAAFB facilities, significant underground infrastructure will be installed within Area B. It consists of a vault and conduit system housing copper and fiber optic cabling. Additionally, a portion of underground infrastructure will be installed between LAAFB and its neighbor, The Aerospace Corporation, located across El Segundo Boulevard and directly South of Area B. This communication line will support USAF employees who perform Space and Missile Systems Center activities while collocated on the Aerospace campus. In summary, the boring activity being requested under El Segundo Boulevard will provide the infrastructure pathway for communications conduits to provide connectivity between LAAFB and the Aerospace campus. 13 LAAFB/EI Segundo 15March04 LICENSE AGREEMENT THIS LICENSE AGREEMENT ( "Agreement ") is entered into this _ day of March 2004 ( "Effective Date "), by the CITY OF EL SEGUNDO, a municipal corporation ( "City ") and by the 61st Air Base Group (61st ABG). This Agreement is made with reference to the following facts and objectives: A. The City owns public street rights -of -way commonly known as El Segundo Boulevard, as shown on the attached maps labeled Exhibit "A7; and B. 61st ABG seeks permission to perform certain acts upon, under, over, along and across the property described above, specifically to install and maintain four (4) -- 4" Schedule 40 PVC communications conduit, one or more of which consists of a sheathed, single mode, multi -strand outdoor fiber cable. 2. In consideration of 61 st ABG's performance of this Agreement, the City grants to 61st ABG, subject to the terms and conditions of this Agreement, a one (1) year- non - exclusive, non - possessory license to lay, construct, maintain, operate, repair and remove communications conduits and cables in, under, over, along and across those certain public street rights -of -way situated in the City of El Segundo, County of Los Angeles, State of California described above. 3. License shall automatically terminate upon full execution of a perpetual easement to be agreed upon by both parties. 4. 61st ABG will submit engineering plans and specifications for the installation of conduits to the City for the City's prior approval. 5. 61 st ABG's communications conduits and cables will be installed in the general locations shown on attached Exhibit A which is incorporated in this Agreement as specifically shown on maps to be filed with the City's Public Works Director subject to the City's approval. These maps will be incorporated into this Agreement upon the City's approval. 6. All work within the public street rights -of -way will be in accordance with City Standards (as referenced in the Public Works Manuals) and the Standard Specifications for Public Works Construction and will require a City Department of Public Works Excavation permit. 7. 61st ABG will pay a License Agreement Fee to the City of $104. This fee has been computed on a unit fee rate of $0.10 /foot/year of each separate conduit and a total estimated installation of 4 (four) 260 linear feet of conduit, for a total of 1,040 lineal feet. 8. 61st ABG will bear all costs or expenses in connection with the construction, maintenance, operation or repair of said communications conduits installed pursuant to this Agreement. 9. 61st ABG will not unreasonably interfere with or obstruct the public use of the City's street rights - of -way, and will promptly and properly backfill any excavations made by or for 61st ABG as a part of installing the communications conduits and appurtenances. Both parties will use their best efforts Page 1 of 3 133 LAAFB/El Segundo 15March04 to cooperate in the construction, maintenance, operation or repair of the communications conduits and cables. 10. The City may change the grade of any street or road affected by this Agreement or install or relocate municipal water pipes, sewer lines or any other city owned subsurface installations, and 61st ABG will, within sixty (60) business days after demand by the City, start to relocate all affected conduits and appurtenances laid, constructed or erected pursuant to this Agreement, so as to conform to such changes in grade, or such installation or relocation of subsurface installations, and proceed diligently to complete such relocation of the affected conduits and appurtenances at 61st ABG's sole expense, and based upon a mutually agreed upon schedule. Any failure by 61st ABG to comply with the provisions of this paragraph shall constitute a breach of this Agreement. 11.61st ABG shall not damage any public property as a result of its construction, use of communications conduits, or for any other cause arising from its operation such conduits. Any failure by 61st ABG to, at its own cost and expense, immediately repair any and all such damage and restore said street or portion to as good condition as before such usage or cause of damage occurred, under the direction and satisfaction of the Public Works Director, shall constitute a breach of this Agreement. 12. 61st ABG, its employees, and agents, at any and all times when necessary, will have reasonable access to the communications conduits. However, 61st ABG will comply with all applicable provisions of law including, without limitation, the El Segundo Municipal Code, and will ensure that all materials furnished and used in installation of its communications conduits conform to City standards for such type of work and improvement. All designs, materials, and work will be subject to the approval of, and finished to the satisfaction of, the City. 13. All expenditures to be made by the Government under the provision of this agreement shall be subject to appropriations being available for the purpose. 14. The parties acknowledge the Federal Government is self - insured. 15. This license will not be assigned by 61st ABG, in whole or in part, without the City's prior written consent, except that the City's prior consent is not required for 61st ABG's assignment of this license to any affiliate of 61st ABG. Written consent by the City to an assignment will not be deemed a waiver by the City of any provision of this Agreement, except to the extent expressed in such written consent to assignment. 16. Nothing in this Agreement is intended or will be interpreted to substitute for any permit or other authorization required by any federal, state or local agency other than the City or any private parties or party, or to limit any of the powers or authority of any federal, state or local agency other than the City or of any private parties or party. 17. This Agreement will be construed in accordance with federal laws. 18. This Agreement may be executed in one or more counterparts, each of which will be an original but all of which together will be deemed to constitute a single document. 19. Notices required to be given by the terms of this Agreement will be given by personal service, or by Page 2 of 3 134 LAAFB/El Segundo 15March04 deposit of the same in the custody of the United States Postal Service, postage prepaid, certified mail addressed to the party to be served as follows: (a) City: Director of Public Works City of El Segundo 350 Main Street El Segundo, California 90245 -0989 (b) 61s` ABG /CC 2420 Vela Way, El Segundo, California 90245 -4659 With a copy to: 61ST ABG: Real Property Officer Los Angeles Air Force Base 2420 Vela Way, Suite # 1866 El Segundo, California 90245 -4659 The parties may designate alternate persons to receive notices on their behalf as necessary. Notices herein will be deemed given as of the date of personal service, or two (2) consecutive calendar days after deposit of the same in the custody of said Postal Service. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first written above. CITY OF EL SEGUNDO M Mary Strenn, City Manager ATTEST: City Clerk (SEAL) *Attach: Notary statement for signer. Enc: Exhibit A Map(s) UNITED STATE AIR FORCE Lee D. MacArthur, Lt. Col., USAF By 4C Ti Commander, 61st Air Base Group APPRC Mark E SO Page 3 of 3 135 N c N O M V J E = li o O im CL CN v r O m d IN CL m ,. c 0 m m LL a LL ^ Z LL ?1 R m I _0 J �p N CD Op O U) w y R R tir 'C O OW 10�i0 LL Vm Z a O O Ln QQLL N d Q " y d 0 c �O N WR'UW m A e cb p a wa « m O. G. C 0 C 7 d O co C1 I U y N o v CL E W 0 U) 0 .n LLa • ;S sei6noa CL co LL I L a C m M N O. O a` I :5 i I J � N c � C O .29 d L H vo 2 I O 4 d _ _ _ m C C C V Irl r /N„C. LL 0 �I UfV('J 6 C v M 3hl "1 AhrJ d LL U M nvadr J 7 Lf) 1 CD LOc. I,I,' m Op N h r.M o 1 0 ~ N �•' C LL1 01 E um Oa .n saga 7 -� N > r Za o� C U C 0 E c v m N m C r W Q.' U W i 7rG. Of d .......s,�.. '....�.. .. m C n b V O m r " a• O CL CL 0 LL CL - N Q. 4 y N �o co LL I _ � i N _a 13 7 138 EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to authorize an agreement with Metalore, Inc., 750 South Douglas Street, for acquisition of real property for the Douglas Street Gap Closure / Railroad Grade Separation Project — Approved Capital Improvement Project - (Estimated cost = $905,400). RECOMMENDED COUNCIL ACTION: Recommendation — (1) Authorize the City Manager to execute an agreement with Metalore, Inc., prepared by the City Attorney's office on behalf of the City; (3) Alternatively discuss and take other action related to this item. BACKGROUND & DISCUSSION: The construction of proposed Douglas Street Gap Closure Project requires acquisition of right - of -way from Metalore, Inc. The City Attorney and the Los Angeles County Department of Public Works, which is the right -of -way agentforthe City, have been negotiating with Metalore, Inc., to acquire the needed right -of -way and to agree upon the just compensation for the acquisition. (Background & discussion continues on the next page...........) ATTACHED SUPPORTING DOCUMENTS: Location maps (2). FISCAL IMPACT: Capital Improvement Program: $4,700,000 Amount Requested: $ 905,000 Account Number: 301 - 400 - 8203 -8949 Project Phase: Right -of -Way acquisition Appropriation Requireog No ORIGjN DATE: April 1, 2004 David son, Interim Director of ublic Works :yAq DATE: Mary 5trenn, City Manager 04 -06 -04 Approve an Agreement with Metalore, Inc., 750 South Douglas 11 Street for Acquisition of Real Property for the Douglas Street Project 139 BACKGROUND & DISCUSSION: (continued) Pursuant to these negotiations, the City Attorney is currently drafting an agreement for execution by Metalore and the City Manager and is attempting to have an agreement executed by Metalore prior to the Council Meeting. The total agreed upon compensation will be for an amount of $905,400 (reimbursable upon verification of documentation) and includes compensation for the 3,538 SF of land and easement area to be acquired, the loss of one (1) of the two (2) existing driveway accesses to the property and for Metalore, Inc., relocation of part of Metalore's operations to an alternate location during construction of the project due to the use of precision CNC machines that may be affected by vibration. It should be noted that the compensation amount will be increased by $4,800 per month for each month in excess of the estimated construction period of 24 months. N4 0604 Approve an Agreement with Metalore, Inc., 750 South Douglas 140 Street for Acquisition of Real Property for the Douglas Street Project BACKGROUND & DISCUSSION (continued): A total of $27.5 million dollars is available under the SHSGP and will be distributed to 88 cities, the County and City of Los Angeles and various disciplines. $28.8 million dollars is available under the UASI program, and will be distributed to 18 cities, including El Segundo. These grants are provided on a 100% federal share formula; the federal government provides all funding, approved costs are reimbursed. The equipment being sought would extend protection for response to chemical, biological and other hazards at emergency incidents and is a continuation of the terrorism grant funding being sought for the past 2 years under the DHS terrorism readiness programs. Of the $1.7 million being requested, it is anticipated that between $20,000.00 and $750,000.00 may be awarded to the City of El Segundo under the various grant distribution formulas and policies established by the grant Approval Authorities for police, fire, emergency management, and public works disciplines. The Council has the ability to accept or reject any actual grant funding offered. The Fire Department will return to the Council with a preliminary award, if announced. In accordance with the City Council Policy regarding grant submissions: 1. The Federal Department of Homeland Security, under the Office for Domestic Preparedness (ODP), administers the grant programs. 2. The total amount being requested is: $1.7 million dollars 3. Matching Funds Cost -Share — n/a 4. Source of Matching Funds Cost Share: n/a 5. The grant does not provide up front funding. Municipalities encumber the approved funds and are reimbursed by the State of California in approximately 60 days. 6. Conditions required under this grant: a. Establish that an Equal Employment Opportunity Plan (EEOP) be in place prior to spending grant funding beyond $25,000.00 in any single year. b. All equipment purchased under the grant funding, if awarded, is required to be maintained and replaced under the city's capital equipment replacement standards. 14.1 EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action on a notification of intent to sell 0.5 acres of property at 616 West Imperial Avenue by the El Segundo Unified School District ( ESUSC) pursuant to California Government Code Section 54222 and California Education Code Sections 17464(a), and 65402(c). RECOMMENDED COUNCIL ACTION: 1) Consider the notification of intent by ESUSD to sell property at 616 West Imperial, and whether the City desires to purchase such property; 2) Determine that the proposed property disposition is in conformity with the General Plan pursuant to California Government Code Section 65402 (c) ; or, 3) Alternatively, discuss and take other action related to this item. BACKGROUND & DISCUSSION: The City received three letters from the ESUSD, on March 8th and 10th (2), regarding the intent to sell property at 616 West Imperial Avenue. The letters noted that under Government Code Section 54222 the City has 60 days following receipt of the letter to notify the District of its intent to purchase the property. One of the letters also references Education Code section 17464(b) (1) that requires the District to publish in a newspaper of general circulation within the boundaries of the district of the intent to dispose of the property. And lastly, the second letter received on march 10th references California Government Code Section 65402(c) requesting the Department of Community, Economic & Development Services to submit a report within 40 days of receipt of the notification to deem the proposed disposition of property consistent with the General Plan. (continued on next page....) ATTACHED SUPPORTING DOCUMENTS: A. Letter from EDUSD dated March 4, 2004 B. Second letter from ESUSD dated March 4, 2004 C. Third letter from the ESUSD dated March 4, 2004 FISCAL IMPACT: Operating Budget: N/A Amount Requested: N/A Account Number: N/A Project Phase: N/A Appropriation Required: _Yes X No /1. L�o z;&� _ /Z ?r- isen, Director of Community, Economic & Development Services Ma 14 i 13 Background & Discussion: (continued from page 1) The proposed disposition of property will not involve a change in land use. Therefore, the action is consistent with the General Plan. The District's property fronts on Imperial Avenue and shares its southern boundary with Acacia Park. The site is zoned R -3 and could be developed with 8 multifamily units or 12 units if the property is divided (because the properties of less than 15,000 square feet can be developed at a higher density — 18 versus 27 units per acre). For references purposes, the approximate value of the property is between $1.6 and $2.5 million based upon recent transactions of R -3 in El Segundo. 1(-15& ° ° °° El Segundo Unified School District 641 SHELDON STREET • EL SEGUNDO, CALIFORNIA 90245 i � � (310) 615 -2650 • FAX(310)640 -8272 FO �c�ooio�S SUPERINTENDENT VIA CERTIFIED MAIL BRUCE AULD RETURN RECEIPT REQUESTED D g i e� LS II V + D GEDS March 4, 2004 City of El Segundo, Planning Division Community, Economic and Development Services 350 Main Street El Segundo, CA 90245 BOARD OF EDUCATION MICHAEL D. BRINEY JO -ANN E. EDLEFSEN CHRIS J. POWELL CHRISTINE M. SHERRILL KATHLEEN A. WILEY Re: Notification of Intent to Sell Surplus Property Pursuant to Education Code Section 17464(x) and Government Code Section 54222 To All Concerned Parties: Pursuant to California Education Code Section 17464(a) and Government Code Section 54222, this letter notifies you that the El Segundo Unified School District ( "District ") intends to sell its property interest in certain property which is approximately 0.5 acres of property located at 616 West Imperial Avenue in the City of El Segundo, CA ( "Non- Naylor Act Property"). (Attached hereto is a legal description of the Non - Naylor Act Property). Pursuant to Government Code Section 54222, you have 60 days following receipt of this letter in which to notify the District in writing of your intent to purchase the Non - Naylor Act Property at which time the District will enter into good faith negotiations pursuant to Government Code Section 54223 to determine a mutually satisfactory sale price. If a sales price cannot be agreed upon after the good faith negotiation period, the District will offer the Property for sale to the general public in accordance with California law. Please direct any inquiries regarding this property to me. Sincerely, Bruc�ld` Superintendent Jr cnle�Co /eRocvr/"w 41ff4ei64 vierz� co�zi�zciiacf uaeawl c /zliiiae&W �.¢vnsir� r�,��iko,�ziraeiz,%f i�,�/ /e.�- �earel e iciclet� /zro ccJ.ive, cai�0za� scoiz��te cc%; e to meezf c�,.n�vii�� cylr7 y rla�s�cc% �sz 2iuf eizf -rir�. 146 LEGAL DESCRIPTION All that following described real property in the City of El Segundo, County of Los Angeles, State of California, described as follows: Portion of Los Angeles County Recorder's Office Lot 2, Block 13, Tract 1685, Map Book 21, Page 98. Also know as Portion of Los Angeles County Recorder's Office Assessor's Parcel No. 4131 -1 -900. 147 El Segundo Unified School District 641 SHELDON STREET • EL SEGUNDO, CALIFORNIA 90245. C (310) 615 -2650 • FAX (310J'$4A --8272 fO+ °� °�• � r� L� L i I F I I HMO -- SUPERINTENDENT BRUCE AULD UITY 'S OFFICE VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED BOARD OF EDUCATION MICHAEL D. BRINEV JO -ANN E. EDLEFSEN CHRIS J. POWELL CHRISTINE M. SHERRILL KATHLEEN A. WILEV March 4, 2004 VED Ms. Mary Strenn City Manager CEDS City of El Segundo City Manager's Office 350 Main Street El Segundo, CA 90245 Re: Disposal of Property Interest Currently Owned by the El Segundo Unified School District Dear Ms. Strenn: Pursuant to California Government Code Section 65402(c), the El Segundo Unified School District ( "District ") is hereby giving the Planning Department of the City of El Segundo notice that the District intends to sell property which the District currently owns which is located at 616 West Imperial Avenue, El Segundo, California ( "Property "). A legal description of the Property is attached hereto. The District hereby requests that the Planning Department of the City of El Segundo submit a report to the District regarding the District's proposed disposal of the Property. Government Code Section 65402(c) provides that the failure of the Planning Department to submit a report within forty (40) days after this matter has been submitted to the Planning Department shall be conclusively deemed to be a finding that the proposed disposition of the Property is in conformity with the City's General Plan. Thank you for your cooperation in this matter, Very truly yours, 4Bru�CC�kCiliv Superintendent aC�e�liCa / /�e�/.L'�d/4orJLl�it� d /tc�e�epf -3 C[2C�Uee P.o1J2.97,11�ccY� � LEGAL DESCRIPTION All that following described real property in the City of El Segundo, County of Los Angeles, State of California, described as follows: Portion of Los Angeles County Recorder's Office Lot 2, Block 13, Tract 1685, Map Book 21, Page 98. Also know as Portion of Los Angeles County Recorder's Office Assessor's Parcel No. 4131 -1 -900. 14 NOL t, G„✓ SUPERINTENDENT � �l BRUCE AULD \ March 4, 2004 Mary Strenn, City Manager City of El Segundo City Manager'ti office 350 Main Street El Segundo, CA 90245 Segundo Unified School District 641 SHELDON STREET • EL SEGUNDO, CALIFORNIA 90245 (310) 615 -2650 • FAX(310)640 -8272 VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED OFFICE BOARD OF EDUCATION MICHAEL D. BRINEV JO -ANN E. EDLEFSEN CHRIS J. POWELL CHRISTINE M. SHERRILL KATHLEEN A. WILEY Re: Notification of Intent to Sell Surplus Property Pursuant to Education Code Section 17464(b)(1) To All Concerned Parties: Pursuant to California Education Code Section 17464(b)(1), this letter notifies you that the El Segundo Unified School District ( "District ") intends to sell its property interest in certain property which is approximately 0.5 acres of property located at 616 West Imperial Avenue in the City of El Segundo, CA ("Non- Naylor Act Property "). Attached hereto is a legal description of the Non - Naylor Act Property. Pursuant to Education Code Section 17464(b)(1), you must notify the District in writing of your intent to purchase the Property within 60 days of the third publication of the District's intent to dispose of the Property in a newspaper of general circulation with the boundaries of the District. It is anticipated that the third publication of the notice will occur on or about March 22, 2004. If you notify the District of your intent to purchase the Property within the specified time period, the District will enter into good faith negotiations with you to determine a mutually satisfactory sale price. If a sale price cannot be agreed upon in the time period provided by California law, the District will offer the Property for sale to the general public in accordance with California law, Please direct any inquiries regarding this property to me. Sincerely, Bru Auld "" -4�- Superintendent �et/oaCecCto /u o�� r/i� ;Auld e"?W1,, tail�a� o�tliiritii�t �.o.%�ttit� eiul� ®,.rirte.2Ll�ot /r,<r�.tr.�a -.� P�ico„/.e��rra�cofioe, eonr�eawiir,n,�fe ciJixeie<: to wmellxw c �,ei eJ e�, LEGAL DESCRIPTION All that following described real property in the City of El Segundo, County of Los Angeles, State of California, described as follows: Portion of Los Angeles County Recorder's Office Lot 2, Block 13, Tract 1685, Map Book 21, Page 98. Also know as Portion of Los Angeles County Recorder's Office Assessor's Parcel No. 4131 -1 -900. 151 EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action regarding a request by the Chamber of Commerce and Mark Neumann, the developer of the parking garage project, to name the alley "Marketplace" between Main Street and Richmond Street from Grand Avenue to Pine Avenue. RECOMMENDED COUNCIL ACTION: 1. Approve the request to name the alley, "Marketplace "; 2. Authorize staff to erect four street name signs; and /or, 3. Alternatively, discuss and take other action related to this item. BACKGROUND & DISCUSSION: The alley between Main Street and Richmond Street, from Grand Avenue to Pine Avenue provides access to the new parking garage project, Cooke's Family Market, and a number of businesses along Main Street. In order to formalize the entrance to Cooke's and to the other stores that provide entrances from the alley, it is recommended that the alley be given the name Marketplace. A name would enhance the alley's image while providing a sense of destination. A name would also increase awareness of the alley's visibility to the community, thus helping to ensure maintenance of properties along the alley. ATTACHED SUPPORTING DOCUMENTS: A. Letter from the Chamber of Commerce dated March 9, 2004; B. Letter from the developer dated March 29, 2004. FISCAL IMPACT: Operating Budget: Amount Requested: Account Number: Project Phase: Appropriation Required: $142,000 (Street Services, Contractual Services) $500 001 - 400 -4201 -6206 N/A —Yes _X_ No ORIGINATED BY: DATE: Hansen, Director of Community, Economic and Development Services REV(1cVyE) BY: DATE: Mary Str n, C Manager �1%oy 14 E ° e lgunGo TheCHAM3ER ivt i ni. for Buornc.,,, March 9, 2004 Ms. Mary Strenn City Manager City of El Segundo 350 Main Street El Segundo, CA 90245 Dear City Manager Strenn: Attachment A On behalf of the El Segundo Chamber of Commerce DESI Committee, we would like to express our support for naming the ally between Main Street: and Richmond Street, going East to West, and between Grand Avenue and Pine Avenue, going North to South. Since this area is an entrance to many store fr©nts, and especially to the new Cooke's Family Market, the naming of this ally would enhance its image to this area. As a committee, we collectively agreed with the proposed name of Market Place. The name will give a sense of a real destination to its location and encourage its use. It should also create a renewed pride of tenancy for those who occupy the adjacent buildings by ensuring that landscaping is a consideration and trash is kept out of sight. We feel this is just one more step in the progression of making improvements to our shopping district. We thank you in advance for your consideration. I�cict Q 6 vca'K �IKrlll- Brenda Newman, Co -Chair Elyse Ro stein, Co -Chair 427 Main Street • El Segundo, CA 90245 • 310.322.1220 • Fax 310.322.6880 Email: info @elsegundochamber.org J 612 Twin Holdings, LLC Attachment B March 29, 2004 Ms. Sandie Lane City of El Segundo 350 Main Street El Segundo, CA 90245 Re: Renaming Alley between Main & Richmond Dear Sandie: 612 Twin Holdings, LLC, owner of the Cooke's Family Market Building and the Retail/Parking Garage project at 121 W. Grand Avenue, is in full support of renaming the Alley between Main & Richmond to "Marketplace ". We believe this could help residents and customers find the current and future businesses that are located on this alley. Sincerely, 612 Twin Holdings, LLC Mark A. Neumann Managing Member CC: Jerry Preston — Cooke's Family Market 1141 Highland Avenue, Suite 203 — Manhattan Beach, CA 90266 -5326 — 310 -546 -5151 — fax 310- 546 -7676 1,54 EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004' AGENDA ITEM STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action to adopt three (3) resolutions finding and determining that the public interest, convenience and necessity require the acquisition of certain property for public purposes, and authorizing the commencement of eminent domain proceedings to acquire interests in real property at 2221 Park Place, 601 Hawaii Street, and 810 South Douglas Street for the Douglas Street Gap Closure / Railroad Grade Separation Project — (Estimated cost = $455,600). RECOMMENDED COUNCIL ACTION: Recommendation — (1) Adopt the attached three (3) Resolutions by a four -fifths (4/5) vote of City Council; (2) Alternatively discuss and take other action related to this item. BACKGROUND & DISCUSSION: The Douglas Street Project is intended to close an existing gap in the street, between Alaska Avenue and Park Place, by means of constructing a roadway under the BNSF railroad tracks and the MTA Green Line Station. (Background & discussion continues on the next page ..................) ATTACHED SUPPORTING DOCUMENTS: 1. Three (3) resolutions with Notices of Hearing, letters of offer bythe Los Angeles County Public Works Department, and legal descriptions. 2. Location map. FISCAL IMPACT: Capital Improvement Program: $4,700,000 Amount Requested: $ 455,600 Account Number: 301 - 400 - 8203 -8949 Project Phase: Right -of -Way acquisition Appropriation Required: No ORIGIVED DATE: March 30, 2004 Dav Interim Director of Public Works DATE: 4 Mary trenn ity Manageraj� 15 00.0600 Mon Three RasolWUns Ammo ring Me Commencing of Eminent Domain PmroMings b A mra Intereata in Real Prapenyat2221 Park Plax,601 H.W Sao Rand 810SOUM Dauglaa Street br Ne Dn,1. Street 1,. "� ♦, BACKGROUND & DISCUSSION: (continued) The construction of this project requires acquiring certain right -of -way from four (4) property owners, Southern California Edison Company (SCE) and the Metropolitan Transportation Authority (MTA). The Los Angeles County Department of Public Works has been retained to act as the City's right -of -way agent to acquire the needed right -of -way. Agreements have been reached with SCE and MTA regarding their properties and reimbursement agreements have been executed with three (3) oil companies for relocation of the oil pipelines required by the project. A mutual understanding has also been reached with one (1) property owner (Metalore at 750 South Douglas Street), however, negotiations with the following three (3) property owners have reached an impasse for which eminent domain proceedings are recommended: PROPERTY TOTAL AREA AREA TO BE EASEMENT APPRAISED $ ACQUIRED AREA TO BE BY FEE ACQUIRED Innkeepers Summerfield 130,680 SF -0- 6,006 SF $20,500 810 South Douglas Street Purpose of Acquisition: Drainage easement for construction of a storm drain. 2221 Park Place Association 114,563 SF 1,487 SF 4,349 SF $212,500 2221 Park Place Purpose of Acquisition: Roadway / sidewalk and utility / access easements. CTF -2 135,602 SF 2,255 SF 4,977 SF $222,600 601 Hawaii Street Purpose of Acquisition: Roadway and utility / access easements. TOTAL $455,600 * Includes both areas to be acquired by fee and easement. 0""4 Adopt Three RemitAims AuBwrzing the Commencing of Eminent Domain Pmceerags to amiuire lnmeN [� in Real PropeM at 2221 Park Miami, 601 Hoeni Some, aM 810 South Douglas Strttl for the Douglas Sorter PmjM ` BACKGROUND & DISCUSSION: (continued) It is requested that eminent domain proceedings be now initiated in order to advertise the project and to award the construction contract in a timely manner to satisfy certain grant fund deadlines and to avoid potential loss of these funds. The project design is now complete and the project is ready to bid pending acquisition of the needed right -of -way The properties proposed to be acquired in fee and for easements represent a small portion of large properties as indicated above. The proposed acquisition will not substantially impact the use of these properties by the individual property owners. Pursuant to California Government Code Sections 7267.2, 37350.5 and 38000 et seq. and California Code of Civil Procedure Section 1230.010 et. sees .. and Section 19, Article I, of the California Constitution, and other authorities, the City of El Segundo is authorized to acquire interests in property by eminent domain, provided certain procedural steps are followed. First, the City must make an offer to the property owner, which offer must be transmitted in writing, based upon an appraisal. A copy of the offer the City made to the property owners are attached hereto as Exhibit "A ", which offers were made as required by applicable law. The offers were based upon an appraisal of the Property. To date, the offers have not been accepted. It is now necessary that an action in eminent domain be commenced to acquire the properties. Prior to filing the action, the City must hold a hearing on a resolution of necessity, which resolution is attached hereto, and provide the owners of the properties an opportunity to be heard at that hearing, provided the owners have filed a request to be heard in writing with the City prior to the hearing. One property owner, CTF -2 Alaska, has filed such a request. The hearing was timely and duly noticed. Submitted herewith as Exhibit "B" are copies of the Notices of Hearing which notices were given in accordance with the applicable statutes. After conducting the public hearing, if the City Council finds that the public necessity so requires, the City Council should adopt the enclosed Resolutions of Necessity, authorizing the condemnation proceedings for the purpose of acquiring the Properties described in the said Resolutions. The findings, which need to be made, are as set forth in the Resolution of Necessity. Specifically, the City must find: That the public interest, convenience and necessity require the acquisition of the Property for the Project. As proposed, the Project will serve public purposes, specifically, the project is intended to relieve traffic congestion by creating a through north -south transportation corridor, construction of an intermodal public transit facility, and to close an existing gap in a City street consistent with the adopted General Plan. 5r Un Real nd at ParkPlae,601H Ma Commenc8100f EminentDoman Proceedings Dab Ac quire Pn w in Real Pmpdry a12Y11 PaM Place, 801 Haxaii SVeel, and 810 SOUM OOlglas $IreMfo110e Oou0laa Sbrel PmjM BACKGROUND & DISCUSSION: (continued) That the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury. As set forth above, the Property is being acquired because it is located where the City intends to perform construction for a street gap closure and a street grade separation; and That the Property sought to be acquired is necessary for the Project for construction of the roadway underpass and the intermodal public transit facility to support the Metro Green Line Light Rail Station, including utility and drainage easements. The project will be considered by the City Planning Commission on April 8, 2004, to make the General Plan Consistency Finding for acquisition of real property. On February 4, 2003, the City Council adopted the CEQA Negative Declaration for the project pursuant to completion of an Environmental Assessment. Questions relating to value are not relevant to this proceeding. However, that does not mean that negotiations for the acquisition of the Property are at an end. If the City Council adopts the Resolution of Necessity, after the hearing, negotiations for the acquisition of the Property will continue. 0""4 AcoptTmee Resdutbna Aunwraina Ilse Commencing of Eminent Domain Prose '. m!wire blereAa in Real Pmpem al= Park Place, 801 Rea of S"al, and 810 Sou01 Douglas Sbeet forbte Douglas Street Pmj= RESOLUTION NO. A RESOLUTION FINDING AND DETERMINING THAT THE PUBLIC INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN PROPERTY FOR PUBLIC PURPOSES The City Council does resolve as follows: SECTION 1. The City Council, after consideration of the staff report, staff presentation, discussion, oral testimony and evidence presented at its April 6, 2004 meeting finds, determines and declares as follows: A. The public interest, convenience and necessity require the acquisition by City of interest in and to certain real property located at 2221 Park Place, Assessor Parcel Number 4138 - 011 -045 for public purposes; to wit, for the construction of a street gap closure and railroad grade separation and all uses appurtenant thereto (the "Project") ; and B. The interest in real property to be acquired is a fee interest, a permanent utility easement interest, a permanent ingress and egress easement and a permanent drainage easement in the real property described on Exhibit A, attached hereto and incorporated herein by this reference ( "Property "). The Property is located within the City of El Segundo, County of Los Angeles, State of California. A map showing the general location of the Property is attached hereto, marked Exhibit B and incorporated herein by reference and made a part hereof, and C. The Project is planned and located in a manner that will be most compatible with the greatest public good and least private injury in that the City at this particular location want to construct a street gap closure project and a street grade separation project; and D. The taking of the Property is necessary for the stated Project and such taking is authorized by § 19, Article I of the California Constitution, §§ 37350.5 and 38000 et seq. of the California Government Code, § 1230.010 et seq., of the California Code of Civil Procedure, and other applicable law. The acquisition of the Property is necessary to relieve traffic congestion by the creation of an additional arterial route and to improve efficient of local and regional transit services thereby encouraging transit use; and E. The offer to purchase required by California Government Code § 7267.2 has been made to the owners of the Property. F. The necessary notice of hearing on this Resolution has been given, as required by Code of Civil Procedure § 1245.235. -1- i59 G. The Planning Commission is scheduled to deliberate whether the Project conforms with the City's General Plan as required by Government Code §65402(a) on April 8, 2004. H. All conditions and statutory requirements to exercise the power of eminent domain to acquire the Property described herein have been complied with by the City. SECTION 2. The City Council declares that it is its intention to acquire said Property in accordance with the provision of the laws of the State of California governing condemnation procedures. SECTION 3 _ The City Council further finds that if any portion of the area of the Property was appropriated to some public use, the public uses to which it is to be applied by City, as described above, are more necessary and paramount public uses, pursuant to Code of Civil Procedure section 1240.610. SECTION 4. The City Attorney is authorized and directed to prepare, institute and prosecute such proceedings in the proper Court having jurisdiction thereof as may be necessary for the acquisition of said Property, including the filing of an application for an Order for Possession prior to judgment. SFCTION 5- This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution. PASSED AND ADOPTED this _ day of 2004. Mike Gordon, Mayor APPROVED AS TO FORM: Mark D. Hensley, City Attorney IM Karl H. Berger, Assistant City Attorney -2- �60 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO 1 I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five; that the foregoing resolution, being RESOLUTION NO. was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the day of 2004, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTENTION: NOT PARTICIPATING: WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of , 2004. Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) 161 03/20/2004 12:44 FAX 213 206 2700 BURKE WILLIAM 2002 ) 1 File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N. 4138 -011- M •045 T.G. 732 (J3) I.M. 069 -157 Fourth District M0206854 LEGAL DESCRIPTION PARCEL NO. 2 -SU: That portion of that certain parcel of land in the southeast quarter of Section 18, Township 3 South, Range 14 West, as shown on map of the Subdivision of the part of the Sausal Redondo Rancho filed in Case No. 11629 of the Superior Court of the State of California forthe County of Los Angeles, a copyof said map being filed as Clerk's Filed Map No.' 218 in the office of the Director of the Department of Public Works of said county, described in deed to 2221 PARK PLACE ASSOCIATES, recorded on August 24, 1999; as Document No. 99- 1587892, of Official Records, in the office of the Recorder of said county, within a strip of land 6 feet wide, lying 3 feet on each side of the following described centerline: Beginning at a point in that certain course having a length of 381.03 feet in theoenterline of Park Place, 60 feet wide, as said centerline is shown in Book 145, pages 21 and 22, of Record of Surveys, in the office of the Recorder of said county, said point being distant North 47 029'1 g" West 81.85 feet, along said certain course, from the southerly terminus of said certain course; thence North 42 °30'23" East 249.08 feet to the beginning of a tangent curve concave to the west and having a radius of 15.00 feet; thence northerly, along said curve, through a central angle of 42 030'23 ", an arc distance of 11.13 feet; thence tangent to said curve, NORTH 61.42 feet to the beginning of a tangent curve concave to the southwest and having a radius of 20.00 feet; thence northwesterly, along said last mentioned curve, through a central angle of 47 °48'30 ", an arc distance of 16.69 feet; thence tangent to said last mentioned curve North 47 048'30" West 61.99 feet to the beginning of a tangent curve concave to the east and having a radius of 5.00 feet; thence northerly, along said last mentioned curve, through a central angle of 53 035107, an are distance of 4.68 feet; thence tangent to said. last mentioned curve, North 5 046'39" East 10.00 feet. APPROVED AS TO DESCRIPTION Containing: 2268± feet. COUNTY OF LOS ANGELES S E V TN CADASTRAL ENGINEER R Mapping and Property Management: Division EXHIBIT A SCG 6.,1MyFileslRoad \Deuglas\Legals.doc i62 03/29/2004 12:45 FAX 213 236 2700 BURRS WILLIAM File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N..4138- 011 -IM .045 T.G. 732 (d3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION' PARCI_L NO, 2.8IE: 4J 003 The northwesterly 20 feet of that certain parcel of land, in the southeast quarter of, Section 18, Township 3 South, Range 14 West, as shown on map of the Subdivision of the part of the Sausal Redondo Rancho filed in Case No. 11629•of the Superior Court of the State of California for the County of Los Angeles, a copy of said map being filed as Clerk's Filed Map No_ 218 in the office of the Director of the Department of Public Works of said county, described in deed to 2221 PARK.PLACE ASSOCIATES, recorded on August 24, 1 999, as Document No. 99- 1567892, of Official Records, in the office of the Recorder of said county. Containing: 5777+ square feet. APPROVED AS TO DESCRIPTION June 2 72000 COUNTY OF LOS ANGELES BY ll V^ S6E)619dG CADASTRAL ENGINEER II Mapping and Property Management Division 163 .EXHIBIT A 05/29/2004 12:45 FAX 215 256 2700 BURKE WILLIAM 0 004 PARCEL NO. MDE: That portion of the southeast quarter of the above mentioned Section 18 within a strip of land 12.5 feet wide, the easterly sideline of said strip being described as follows: Beginning at the northerly terminus of that certain course having a bearing and distance of South 0 003'51 East 299.81 feet in' the above described PARCEL ,NO, 2-8R; thence southerly, along said course, a distance of .160.7.3 feet. The westerly sideline of said 12,5 -foot strip of land shall be prolonged northerly so as to terminate in the above mentioned southwesterly boundary of PARCEL D -1. Containing: 2061+ square feet. AS TO oL r. . 3 3003 COU TM OF LOS 'ANGELES B S G CADASTRAL ENODMRII Mapping and Property Management Division EXHIBIT A 164 Page 2 of 2 JAMES A. NOYES, Direcmr March 8, 2004 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS "Enriching Lives" 900 SOUTH FREMONT AVENUE ALHAMEIF A, CALIFORNIA 91803 -1331 Telephonc(626) 458 -5100 www.ladpw.org RECEIVED MAR 11 2004 PUBLIC WORKS Mr. David Garcia ENGINEERING Sandstone Properties, Inc. 1543 - 7th Street, Suite 202 Santa Monica, CA 90401 Dear Mr. Garcia: DOUGLAS STREET GRADE SEPARATION PROJECT PARCEL 2-811, 2-8DE, 2-81E, AND 2 -8U ASSESSOR'S IDENTIFICATION NO. 4138 -011 -006 SITUS: 2221 PARK PLACE, EL SEGUNDO FEDERAL NO. RPSTPL -5235 (008) ACQUISITION OF RIGHT OF WAY ADDRESS ALL CORRESPONDENCE TO P.O. BOX 1460 ALHAMBRA, CALIFORNIA 91802 -1460 IN REPLY PLEASE REFER TO FILE: MP -2 M02D6854 The City of El Segundo is planning a grade separation project for the Douglas Street gap closure between Utah Avenue and East Park Place, in the City of El Segundo. The project will affect the 2221 PPA, LLC property you recently purchased at 2221 Park Place in El Segundo. The County of Los Angeles Department of Public Works is handling the acquisition of right of way on behalf of the City. The proposed project will involve the construction of a below grade roadway crossing, under the existing Metropolitan Transportation Authority (MTA) owned freight track (operated by the Burlington Northern Santa Fe Railroad) and overhead Green Line Station Platform. The former owners had agreed to our original offer dated August 27, 2003; however, due to their pending sale, no action was taken. They indicated that our proposed acquisition was fully disclosed to the new owner. In order to construct the project, the City will require certain rights such as: Fee title to Parcel 2 -8R (1,487 square feet) for road purposes in order to build a retaining wall and upper sidewalk; a drainage easement in Parcel 2 -8DE (2,081 square feet) for a new 30 -inch underground drain pipe due to the change in road grade; and a 20- foot -wide ingress /egress easement over Parcel 2 -81E (5,777 square feet) for MTA's access from Park Place along the westerly side of your property to their service facility. We have already obtained a Consent to Grant of Easement document for Parcel 2 -81E, from the adjacent owner, Camfil Farr. We will also need a utility easement to Southern California FXHIINT A 165 I/6 PLAcI-= Mr. David Garcia March 8, 2004 Page 2 Edison Company (SCE) for relocating overhead utilities underground in Parcel 2 -8U (2,268 square feet). Please refer to the enclosed construction drawings and certification right of way maps identifying the areas in color. Due to the recent change in ownership of the property, we will be sending you the revised documents for the drainage easement and road area to be conveyed to the City of El Segundo, the ingress /egress easement for MTA, as well as the easement document for interests to be conveyed to SCE, under separate cover. Based on our appraisal, we are prepared to pay you $212,500 for the road area in fee, the drainage easement, the ingress /egress easement, and the utility easement. In addition to the property rights being acquired, this payment includes reimbursement for removal of a two -foot -high hedge, rehabilitation of a sprinkler system, and removal of miscellaneous lawn and small plants. The enclosed acquisition package includes the following: The County of Los Angeles Department of Public Works Informational Brochure explaining real property acquisition procedures. 2. Non - Discrimination Policy - Title VI Survey Form. 3. Written Summary of Just Compensation which describes the basis for our offer. 4. Agreement to Convey and Claim for Payment form. 5. Due to the recent ownership transfer, at this time we only have duplicates of the documents previously prepared for the prior owner. New documents will be sent to you with updated owner information, as soon as these are available. In the meantime, please review the proposed documents and attached legal descriptions of the following: Deed for road right of way and drainage purposes, to the City of El Segundo, and an easement for ingress /egress conveying rights to MTA. The utility easement conveying the rights to SCE is not yet available. 6. Request for Information about a limited liability company. 7. Receipt. Please review the enclosures and, if the proposed settlement figure meets with your approval, sign and return the following in the self- addressed, stamped envelope provided: 1. The Title VI Non - Discrimination Policy Survey. 16 t, Mr. David Garcia March 8, 2004 Page 3 2. The Agreement to Convey and Claim for Payment, including your Taxpayer Identification Number. 3. Original deed for road and drainage easement, the original easement for ingress /egress, and the utility easement. Please note, all documents must be notarized. Documents are forthcoming. 4. Receipt for all documents included herein. 5. Information requested on 2221 PPA, LLC, as a limited liability company (enclosed). We anticipate providing you with new documents for execution within the next three weeks. We would like to set up a meeting as soon as possible to go over the project scope and answer questions you may have. Your immediate attention to this matter is greatly appreciated. Please telephone Ms. Farron Chavarria, Monday through Thursday, between the hours of 7 a.m. and 5:45 p.m., at (626) 458 -7062 or email fchavarr @ladpw.org if you need any additional information. Thank you for your cooperation. Very truly yours, JAMES A. NOYES Director of Public Works SIGNED �► vu OtNT FARRON CHAVARRIA, Real Property Agent II Acquisition & Revenue Properties Section Mapping & Property Management Division FC:psr P2: \FC PARK PL Enc. cc: City of El Segundo (Beliur Devaraj) Parsons Engineering (Pete Tuccillo) Burke, Williams & Sorensen, LLP (Bruce Gridley) 3/b JL �Of L°SANC °A LIFOPMP JAMES A. NOYES, Director August 27, 2003 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS "To Enrich Lives Through Effective and Caring Service" 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803 -1331 Tciephone:(626) 458 -5100 www.Iadpw.org Mr. Jason Lieberman, Vice President Ruben Pachulski Properties 11812 San Vicente Boulevard, Suite 210 Los Angeles, CA 90049 -6622 Dear Mr. Lieberman: DOUGLAS STREET GRADE SEPARATION PROJECT PARCELS 2 -811, 2 -8DE, AND 2 -81E ASSESSOR IDENTIFICATION NO. 4138 - 011 -006 SITUS: 2221 PARK PLACE, EL SEGUNDO ACQUISITION OF RIGHT OF WAY FEDERAL NO. RPSTPL -5238 (008) ADDRESS ALL CORRESPONDENCE TO: P.O. BOX 1460 ALHAMBRA, CALIFORNIA 91802 -1460 IN REPLY PLEASE REFER TO FILE: MP -2 M02D6854 RECEIVED SEP 3 - 2003 PUBLIC WORKS ENGINEERING This letter is in follow -up to our meeting of February 27, 2003, wherein we discussed the subject property as it impacts property owned by 2221 Park Place Associates, LLC. As you are aware, the City of El Segundo is planning to connect Douglas Street between Park Place and Alaska Avenue. The County of Los Angeles Department of Public Works is handling the acquisition of right of way on behalf of the City. The proposed project will involve the construction of a below grade roadway crossing, under the existing Metropolitan Transportation Authority (MTA) -owned freight track (operated by the Burlington Northern Santa Fe Railroad), and overhead Green Line Station Platform. The project will affect the 2221 Park Place Associates, LLC property located at 2221 Park Place in El Segundo. In order to construct the project, the City will require certain rights such as: fee title to Parcel 2 -8R for road purposes in order to build a retaining wall and upper sidewalk; a drainage easement in Parcel 2 -8DE for a new 30 -inch underground drain pipe due to the change in road grade, and a 20- foot -wide ingress /egress easement (Parcel 2 -81E) for MTA's access from Park Place along the westerly side of your property to their service facility. Please refer to the enclosed construction drawings and certification right of way maps identifying the areas in color. X68 A- 6 Mr. Jason Lieberman August 27, 2003 Page 2 We will also need a temporary Permit for relocating overhead utilities underground and a permanent utility easement to Southern California Edison Company (SCE). We will be sending you the Permit and Easement documents for interests to be conveyed to SCE under separate cover. Based on our appraisal, we are prepared to pay you $192,500 for the road area in fee, the drainage easement, and the ingress and egress easement. In addition to the property rights being acquired, this payment includes reimbursement for removal of a two- foot -high hedge, rehabilitation of a sprinkler system, and removal of miscellaneous lawn and small plants. The enclosed acquisition package includes the following: 1.' County of Los Angeles Department of Public Works Informational Brochure explaining real property acquisition procedures. 2. Non - Discrimination Policy - Title VI Survey Form. 3. Written Summary of Just Compensation, which describes the basis for our offer. 4. Agreement to Convey and Claim for Payment form. 5. Original and duplicate Deed for road right of way and drainage purposes, and an original and duplicate Easement for ingress and egress with attached legal descriptions conveying the rights to the City of El Segundo and MTA 6. Request for Information about a limited liability company. 7. Receipt. Please review the enclosures and, if the proposed settlement figure meets with your approval, sign and return the following in the self- addressed, stamped envelope provided: 1. Title VI Non - Discrimination Policy Survey. 2. Agreement to Convey and Claim for Payment, including your Taxpayer Identification Number. 5/(1 Mr. Jason Lieberman August 27, 2003 Page 3 3. Original Deed for road and drainage easement and the original Easement for ingress and egress. Both documents must be notarized. 4. Receipt for all documents included herein. 5. Information requested on 2221 Park Place Associates, LLC as a limited liability company. The duplicates are provided for your records. Your immediate attention to this matter is greatly appreciated. Please telephone me at (626) 458 -7062, Monday through Thursday, between the hours of 7 a.m. and 5:45 p.m., or email fchavarr @ladpw.org if you need any additional information. Thank you for your cooperation. Very truly yours, JAMES A. NOYES Director of Public Works SIGNED AND SENT FARRON CHAVARRIA, Real Property Agent II Acquisition & Revenue Properties Section Mapping & Property Management Division FC:adg PMOUGLAS ST 2 -8R Enc. cc: City of El Segundo (Bellur Devaraj) V/ Parsons Engineering (Pete Tuccillo) Ito 616 C,0!9 / / / - � i s ,J.'1,& 114 NOTICE OF HEARING PUBLIC WORKS ENGINEERING NOTICE OF HEARING REGARDING THE INTENTION OF THE CITY OF EL SEGUNDO, CALIFORNIA TO ADOPT A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF PROPERTY LOCATED AT 2221 PARK PLACE, EL SEGUNDO, CA 90245 ASSESSOR PARCEL NUMBER 4138 - 011 -045 [Code of Civil Procedure §1245.235] TO: 2221 PPA, LLC AND ALL OTHER OWNERS OF; AND PERSONS INTERESTED IN THE PROPERTY HEREINAFTER DESCRIBED: YOU ARE HEREBY NOTIFIED, pursuant to Code of Civil Procedure Section 1230.010, et seq., that the City Council of the City of El Segundo ( "City ") intends to consider the adoption of a Resolution of Necessity for acquisition by eminent domain of interests to certain real property ( "Property ") for the construction of a street gap closure and railroad grade separation. The Property consists of a fee interest of approximately 1,487 square feet; a permanent utility easement interest of approximately 2,268 square feet; a permanent ingress and egress easement of approximately 5,777 square feet; and a permanent drainage easement of approximately 2,081 square feet and is located at 2221 Park Place, El Segundo, APN 4138 - 011 -045 and is legally described in Exhibit A, attached hereto. The hearing will be held on April 6, 2004 at 7:00 p.m., or as soon thereafter as the City Council can hear said matter, at El Segundo City Hall 350 Main Street, El Segundo CA 90245. You, as a person claiming or having an interest in and to the Property, are hereby notified that you have the right to appear and be heard on the issues to be considered at that hearing. The issues which will be considered are set forth in California Code of Civil Procedure Section 1240.030, and include 1. Whether or not the public interest and necessity require the Project; 2. Whether or not the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; 3. Whether or not the property sought to be acquired is necessary for this Project. If you wish to be heard at this hearing, you MUST FILE A WRITTEN REQUEST, indicating your intent to appear and be heard, within fifteen (15) days of the mailing of this notice by filing or delivering that written request to the City of El Segundo, Attention: Cindy Mortesen, City Clerk, 350 Main Street, El Segundo CA 90245 i '71 6xlill3l i You may use the enclosure for the purpose of notifying the City of El Segundo of your intent and desire to be heard. Your failure to timely file a written request to appear and be heard may result in a waiver of your right to be heard. For further information, contact Bellur Devaraj at (310) 524 -2358. Bellur Devaraj ity Engineer Project Manager Dated and Mailed: March 19, 2004 I12 Name Address Date REQUEST TO BE HEARD ON RESOLUTION OF NECESSITY FOR THE ACQUISITION OF CERTAIN REAL PROPERTY Signature Telephone EXHIBIT A Land Description 1'1 !x File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N.4138- 011- VIJEir 045 T.G. 732 (J3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION PARCEL NO. 2 -8R: That portion of the southeast quarter of Section 18; Township 3 South, Range 14 West, as shown on map of the Subdivision of the part of the Sausal Redondo Rancho filed in Case No. 11629 of the Superior Court of the State of California for the County of Los Angeles, a copy of said map being filed as Clerk's Filed Map No. 218 in the office of the Director of the Department of Public Works of said county, within the following described boundaries: Beginning at the northerly terminus of that certain course having a bearing and distance of North 0 000'04" West 293.52 feet in the westerly boundary of Douglas Street, as described in deed to the City of El Segundo, recorded on July 6, 1965, as Document No. 2930, in Book D2966, page 354, of Official Records, in the office of the Recorder of said county, said northerly terminus also being a point in the southwesterly boundary of that certain parcel of land described as PARCEL D -1 in deed to Los Angeles County Transportation Commission recorded on February 1, 1991, as Instrument No. 91- 155546, of said Official Records; thence North 47 029'18" West along said southwesterly boundary, a distance of 6.24 feet; thence South 0 1103'52" East 299.81 feet to the beginning of a tangent curve concave northwesterly and having a radius of 26.00 feet; thence southerly, southwesterly, and westerly, along said curve, through a central angle of 107 127'42 ", an arc distance of 48.76 feet; thence tangent to said curve North 72 °36'11" West 22.51 feet; thence South 21 032'39" West 1.53 feet to the generally northeasterly_ boundary of Park Place, as described in said deed to the City of El Segundo; thence southeasterly, easterly, and northeasterly, along said generally northeasterly boundary, and continuing northerly, along said westerly boundary of Douglas Street, to the point of beginning. Containing: 1487± square feet. To be known as DOUGLAS STREET EXHIBIT A Page 1 of 2 � '7 File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N. 4138-01 1-W9 045 T.G. 732 (J3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION PARCEL NO. 2 -8U: That portion of that certain parcel of land in the southeast quarter of Section 18, Township 3 South, Range 14 West, as shown on map of the Subdivision of the part of the Sausal Redondo Rancho filed in Case No. 11629 of the Superior Court of the State of California for the County of Los Angeles, a copy of said map being filed as Clerk's Filed Map No. 218 in the office of the Director of the Department of Public Works of said county, described in deed to 2221 PARK PLACE ASSOCIATES, recorded on August 24, 1999, as Document No. 99- 1587892, of Official Records, in the office of the Recorder of said county, within a strip of land 6 feet wide, lying 3 feet on each side of the following described centerline: Beginning at a point in that certain course having a length of 381.03 feet in the centerline of Park Place, 60 feet wide, as said centerline is shown in Book 145, pages 21 and 22, of Record of Surveys, in the office of the Recorder of said county, said point being distant North 47029'19" West 81.85 feet, along said certain course, from the southerly terminus of said certain course; thence North 42 030'23" East 249.08 feet to the beginning of a tangent curve concave to the west and having a radius of 15.00 feet; thence northerly, along said curve, through a central angle of 42 030'23 ", an arc distance of 11.13 feet; thence tangent to said curve, NORTH 61.42 feet to the beginning of a tangent curve concave to the southwest and having a radius of 20.00 feet; thence northwesterly, along said last mentioned curve, through a central angle of 47 048'30 ", an arc distance of 16.69 feet; thence tangent to said last mentioned curve North 47 048'30" West 61.99 feet to the beginning of a tangent curve concave to the east and having a radius of 5.00 feet; thence northerly, along said last mentioned curve, through a central angle of 53 035'10 ", an arc distance of 4.68 feet; thence tangent to said last mentioned curve, North 5 046'39" East 10.00 feet. Containing: 2268± feet. SCG C: \MyFiles \Road \Douglas \Legals.doc APPROVED AS TO DESCRIPTION Wrch in 2co4 COUNTY OF LOS ANGELES By i SI�E VtSIN CADAS7RAL ENGINEER II Mapping and Property Management Division EXHIBIT A File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N.4138- 011 -ODD 045 T.G. 732 (J3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION PARCEL NO. 2 -81E: The northwesterly 20 feet of that certain parcel of land, in the southeast quarter of Section 18, Township 3 South, Range 14 West, as shown on map of the Subdivision of the part of the Sausai Redondo Rancho filed in Case No. 11629 of the Superior Court of the State of California for the County of Los Angeles, a copy of said map being filed as Clerk's Filed Map No. 218 in the office of the Director of the Department of Public Works of said county, described in deed to 2221 PARK PLACE ASSOCIATES, recorded on August 24, 1999, as Document No. 99- 1587892, of Official Records, in the office of the Recorder of said county. Containing: 5777± square feet. APPROVED AS TO DESCRIPTION June 2 '2003 COUNTY OF LOS ANGELES By ' a& S VI G CADASTRAL ENGINEER II Mapping and Property Management Division EXHIBIT A X77 PARCEL NO. 2 -8DE: That portion of the southeast quarter of the above mentioned Section 18 within a strip of land 12.5 feet wide, the easterly sideline of said strip being described as follows: Beginning at the northerly terminus of that certain course having a bearing and distance of South 0 003'52" East 299.81 feet in the above described PARCEL NO. 2 -8R; thence southerly, along said course, a distance of 160.73 feet. The westerly sideline of said 12.5 -foot strip of land shall be prolonged northerly so as to terminate in the above mentioned southwesterly boundary of PARCEL D -1. Containing: 2081± square feet. AS TO DESCRIPTION � -JL MC 3 , 2003 COUNTY OF LOS ANGELES B S G CADASTRAL ENGINEER II Mapping and Property Management Division EXHIBIT A . 7$ Page 2 of 2 DECLARATION OF PROOF OF SERVICE BY CERTIFIED MAIL I, the undersigned, declare as follows: I am over the age of eighteen (18) and not a party to the above - entitled action. My business address is 611 West Sixth Street, Suite 2500, Los Angeles, California 90017. On March 19, 2004, I served true copies of the foregoing Notice of Hearing on each of the following named persons by placing for deposit, by certified mail return receipt requested, in the United States Postal Service sealed envelopes containing the same on said date at my said place of business addressed respectively, as follows: Mr. Eri S. Kroch 2221 PPA, LLC c/o Sandstone Properties, Inc. 1543 7th Street, Suite 202 Santa Monica, CA 90401 I am readily familiar with the business' practice for collection and processing of correspondence for mailing with the United States Postal Service. I know that the correspondence was deposited with the United States Postal Service on the same day this declaration was executed in the ordinary course of business. I know that the envelope was sealed and, with postage thereon fully prepaid, placed for collection and mailing on this date in the United States mail at Los Angeles, California. I declare under penalty of perjury under the laws of the State of California that the above is true and correct. Executed this 19th day of March 2004 at Los Angeles, California. . . "..; r'79 RESOLUTION NO. A RESOLUTION FINDING AND DETERMINING THAT THE PUBLIC INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN PROPERTY FOR PUBLIC PURPOSES The City Council does resolve as follows: SECTION 1 _ The City Council, after consideration of the staff report, staff presentation, discussion, oral testimony and evidence presented at its April 6, 2004 meeting finds, determines and declares as follows: A. The public interest, convenience and necessity require the acquisition by City of interest in and to certain real property located at 601 Hawaii Street, Assessor Parcel Number 4138 - 010 -010 for public purposes; to wit, for the construction of a street gap closure and railroad grade separation and all uses appurtenant thereto (the "Project ") ; and B. The interest in real property to be acquired is a fee interest, a permanent utility easement interest and a permanent ingress and egress easement in the real property described on Exhibit A, attached hereto and incorporated herein by this reference ( "Property"). The Property is located within the City of El Segundo, County of Los Angeles, State of California. A map showing the general location of the Property is attached hereto, marked Exhibit B and incorporated herein by reference and made a part hereof, and C. The Project is planned and located in a manner that will be most compatible with the greatest public good and least private injury in that the City at this particular location want to construct a street gap closure project and a street grade separation project; and D. The taking of the Property is necessary for the stated Project and such taking is authorized by § 19, Article I of the California Constitution, §§ 37350.5 and 38000 et seq. of the California Government Code, § 1230.010 et seq., of the California Code of Civil Procedure, and other applicable law. The acquisition of the Property is necessary to relieve traffic congestion by the creation of an additional arterial route and to improve efficient of local and regional transit services thereby encouraging transit use; and E. The offer to purchase required by California Government Code § 7267.2 was made to the owners of the Property. 3-8 f F. The necessary notice of hearing on this Resolution has been given, as required by Code of Civil Procedure $ 1245.235. G. The Planning Commission is scheduled to deliberate whether the Project conforms with the City's General Plan as required by Government Code § 65402(a) on April 8, 2004. H. All conditions and statutory requirements to exercise the power of eminent domain to acquire the Property described herein have been complied with by the City. SECTION 2_ The City Council declares that it is its intention to acquire said Property in accordance with the provision of the laws of the State of California governing condemnation procedures. SECTION 3 _ The City Council further finds that if any portion of the area of the Property was appropriated to some public use, the public uses to which it is to be applied by City, as described above, are more necessary and paramount public uses, pursuant to Code of Civil Procedure section 1240.610. SECTION 4. The City Attorney is authorized and directed to prepare, institute and prosecute such proceedings in the proper Court having jurisdiction thereof as may be necessary for the acquisition of said Property, including the filing of an application for an Order for Possession prior to judgment. I ,;FCTTON 5- This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution. PASSED AND ADOPTED this day of 12004. Mike Gordon, Mayor APPROVED AS TO FORM: Mark D. Hensley, City Attorney In Karl H. Berger, Assistant City Attorney -2- 181 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO 1 I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five; that the foregoing resolution, being RESOLUTION NO. was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the day of 2004, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTENTION: NOT PARTICIPATING: WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of , 2004. Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) -3- 182 03/29/2004 12:45 FAX 213 208 2700 BURRS WILLIAM 16007 File with: DOUGLAS STREET (2) Gap Closure /Grade.S2paration Affects: West Coast Basin Barrier Project Parcel No. 48, '176 -RW4 A.P.N. 4138- 010 -010 T.G. 732 (J3) I.M..069 =157 Fourth District M02D6854 5 LEGAL DESCRIPTION PARCEL NO. 2 -3R; That portion of that certain parcel of land in Lot 26, Tract No. 26557, as shown on map recorded in, Book 675, pages 95 through 98, inclusive, of Maps, in the offioe of the Recorder of the County of Los Angeles, described as PARCEL 2 in deed recorded on March 1, 2001, as Document No. 01- 0337062; of Official Records, in the office of said recorder, within the following described boundaries: Beginning at the most westerly corner of said lot; thence North 42 130'32" East, along the northwesterly line of said lot, a distance of 37.97 feet, thence South, 21 033'56" East 28.18 feet to a point, said point being the beginning of a non - tangent curve concave southwesterly and having a radius of 371.00 feet, a radial of said curve to.said point bears North 49 1149'43" East; thence southeasterly, along said curve, through a central angle of 15 021'24 ", an arc distance of 99.44 feet to a point on the southwesterly line of said lot, said last- mentioned pointbeing distant southeasterly 121.11 feet, along said southwesterly line, from said most westerly corner; thence northwesterly, along said southwesterly line, to'the point of -beginning, Containing: 2255± square feet. To be known as DOUGLAS STREET. APPROVED AS TO DESCRIPTION t` —.�rll 24 ,2003 COUNTY OF LOS ANGELES By "ltxd� 5 SIh G CAIMSTRAL ENGINEER II Mapp'tog d Ptopetty Management Division EXHIBIT A 18 13) 03/29/2004 12;46 FAX 219 290 2700 BME WILLIAM File with:'DOUGLAS STREET (2) Gap ClosurelGrade Separation A.P.N. 4138- 010 -010 T.6.432 (J3) i. M. 069-157'. fourth District M0206854 LEGAL DESCRIPTION PARCEL NO. 2 -311: Part A: IM 008 That portion.of that certain parcel of land in Lot 26, Tract No. 26557,,as shown on map recorded in Book 675, pages 95 through 98, inclusive,.of Maps, in the office-of the Recorder of the County of Los Angeles, described as PARCEL 2 in deed recorded on March 1, 2001, as Document No: 01- 0337062, of Official. Records, in the office of said recorder, within a strip.ofland 10 feet wide, the southwesterly sideline of said strip of land being described as follows: , Commencing at a point in the northwesterly line of said lot, said point being distant North 42 630'32" East 37.97 feet,.-along said northwesterly line, from the most westerly corner of said.lot; thence South 21 033'56" East 28.18 feet to a point, said last- mentioned point being the beginning of a non - tangent curve concave to the southwest and having a.radius of 371.00 feet, a radial of said curve to said last= mentioned point bears North 49 °49'43° East; thence southeasterly,. along said curve, through a central angle of 15 °21'24 ", an arc distance of 99.44 feetto a point on ' the southwesterly line of said lot, said last- mentioned point being distant southeasterly 12111 feet, along said southwesterly line, from said most westerly corner; thence South 47 029'18 "East, along said southwesterly line, a distance.of. 43.89 feet to the most southerly corner of said PARCEL 2; thence northeasterly, along the southeasterly line of said PARCEL 2, a distance of 1.11 feet to a point on a curve concentric with and 20 feet northeasterly, measured radially, from said curve described as having a radius of 371.00 feet, said last - mentioned point also being the. TRUE POINT OF BEGINNING; thence northwesterly, along said concentric curve, through a. central angle of 25 1120'40 ", an arc distance of 172.96 feet to said northwesterly fine. EXHIBIT A Page 1 of 2 1 3 y 09/29/2004 12:46 FAX 219 296 2700 BIWE WILLIAM 2009 The.northeasterly sideline of the above - described 10 -foot strip of land shall be .shortened southerly and northwesterly, so as to terminate in said southeasterly arid. northwesterly lines, respectively. Part B: That portion of ,above- mentioned Lot 26 within the following described boundaries: Beginning at the most southerly comer of above - mentioned PARCEL 2; thence North 47 0291 8 "West, along the southwesterly line of said lot, a distance of 14 -14 feet; thence North 91129'34"West 32.22 feet to the southwesterly sideline of.that 10- foot strip of land in above - described Part A; thence southeasterly, along said southwesterly sideline, to the' southeasterly line of said PARCEL 2;. the southwesterly, along said southeasterly line,. to the point of beginning. Total area of PARCEL NO. 2 -3U, having two parts, containing: 1907± square feet: APPROVED AS TO DESCRIPTION .Ceccmbcr 8 ' , 2003. COUNTY. OF LOS ANGELES " By i ' S G CADASIRAL ENGINEER it Mapping and Property Management Division EXHIBIT A _ Page 2of2 183 SCG C:UdyFiles%Roa"cuglasUgals.doc I . 03/29/2004 12:46 FAX 213 236 2700 PARCEL NO, 2-31E- BLIM WILLIAM [a 010 File with: DOUGLAS STREET (2) . . Gap Closure/Grade Separation Affects: West Coast Basin Barrier Project Parcel No. 48, 176 -RW4 A.P.N. 4138-010 -010 T.G. 732 (J3) I.M. 069 -157 Fourth District 'M02D6854 LEGAL DESCRIPTION That'pdrdon of that certain parcel of land in Lot 26, Tract No: 26557, as shown on map recorded in Book 675, pages 95 through 98, inclusive; of Maps, in the office of the Recorder of the County .of Los. Angeles, described -as PARCEL 2 in. deed recorded on March 1, 2001, as Document No. 01- 0337062, of Official Records„ in the office of said recorder, within a strip of land 20 feet wide 'the southwesterly sideline of said strip being described as follows: Beginning at a point in the. northwesterly line of said lot, said point being distant' North 42°30'32" East 37.97 feet, along said northwesterly line, from the mostwesterly corner of said lot; thence South 21 °33'56" East28.18 feet to a point, said point being the beginning of a non - tangent curve concave to the southwest and having s radius of 371.00 feet, a radial of said curve to said point bears North 49 049'43" East; thence southeasterly, alorig said curve, through a central angle of 15 021'24 ", an arc distance of 99.44 feet to a point on the southwesterly line of sa4 lot; said .last- mentioned point being distant southeasterly 121.11 feet, along said southwesterly line, from said most westerly comer. The northeasterly sidelines of the above - described 20 -foot strip of land shall be prolonged or shortened at the angle point so as to terminate at their point of intersection, and shall be extended northerly and southerly so as to terminate Jn said northwesterly' line and southwesterly line of said Lot 26, respectively. Containing: 3077+ square feet. APPROVED AS TO DESCRIPTION May 13 01005 COUNTY OF LOS ANGELES jS G TSTRAL ENGINEER II Mapping and Property Management Division EXHIBIT A 186 JAMES A. NOYES, Director January 7, 2004 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS "Enriching Lives" 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803 -1331 Telephone: (626) 458 -5100 www.ladpw.org ADDRESS ALL CORRESPONDENCE TO: P.O. BOX 1460 ALHAMBRA, CALIFORNIA 91802 -1460 IN REPLY PLEASE REFER TO FILE: MP-2 M02D6854 Mr. Mark Belluomini Executive Vice President CT Realty Corporation 20151 West Birch, Suite 200 Newport Beach, CA 92660 Dear Mr. Belluomini: DOUGLAS STREET GRADE SEPARATION PROJECT PARCELS 2 -311, 2 -3U, 2 -31E, AND 2 -3P PROPOSED RIGHT OF WAY ACQUISITION FEDERAL PROJECT NO. RPSTPL -5235 (008) In follow -up to our offer letter dated September 29, 2003, we are submitting the rest of our offer for the subject project. We are forwarding documents for the Southern California Edison Company (SCE) utility easement, the Shell Easements, another Road Deed, as well as a temporary Permit needed for a temporary construction area in connection with the project. As explained in our previous letter, this project will affect your property located at 2238 Alaska Avenue /601 Hawaii Street, in the City of El Segundo. The City is proposing to acquire fee title to Parcel 2 -3R (2,255± s.f.) for road purposes, a utility easement over Parcel 2 -31-1 (1,907± s.f.) for two oil lines underground to Shell Oil Company, and a utility easement to SCE on Parcel 2 -31E (3,113± s.f.) for access to their towers and power lines. A Permit will also be needed to run a transmission line from the City's transformer to service your building. We have enclosed two easement documents for Shell, an ingress and egress easement for SCE, and a Permit to Enter on Parcel 2 -3P, for temporary construction area needed. Please refer to the enclosed right of way certification map for an overview of rights being acquired. Based on our appraisal of the rights being requested, we are enclosing a Written Summary of Just Compensation and we are prepared to compensate you in the amount of $222,600, based on our appraisal of $108,100 for the road area (Parcel 2 -3R), $81,000 for the ingress and egress (Parcel 2 -31E), and $33,500 for the utility easements (through Parcel 2 -31-1). 18i !a Wo • r= XN�i3IT 1 601 VAPMAX ST a Mr. Mark Belluomini January 7, 2004 Page 2 The enclosed acquisition package includes the following: 1. The County of Los Angeles Department of Public Works Information Brochure Explaining Real Property Acquisition Procedures. 2. Non - Discrimination Policy - Title VI Survey Form and Receipt. 3. Written Summary of Just Compensation with map showing, in color, the property being acquired. 4. Revised Agreement to Convey and Claim for Payment form (please disregard Agreement sent with original offer letter). 5. An original and duplicate Road Deed conveying the permanent rights to the City of El Segundo. 6. An original and duplicate Ingress and Egress Easement conveying rights to SCE. 7. Two original and duplicate Utility Easements conveying rights to the Shell Pipeline Company. 8. Permit to Enter for temporary construction purposes. 9. Receipt acknowledging all documents included herein. Please review the enclosures and, if the proposed settlement figure meets with your approval, sign and return the following in the self - addressed, stamped envelope provided: 1. The Title VI Non - Discrimination Policy Survey. 2. The Agreement to Convey and Claim for Payment, including your Social Security Number or Taxpayer Identification Number. 3. All four (4) original documents, which must be notarized (the Permit need not be notarized). 5. Receipt for all documents included herein. 6. The status of your lease with VACCO Industries, Inc. The unrecorded lease, dated March, 31, 2000, showed up on a title search. Please indicate whether or not this lease is current or expired. Please provide some documentation or a letter stating the status of this lease. ia�3 02 %� Mr. Mark Belluomini January 7, 2004 Page 3 The copies are provided for your records. In order to record the documents, we must verify the authority of signatories. The documents to be executed on behalf of CTF2 Alaska LLC, should be accompanied by the following: Full copies of the articles of organization, including amendments /restatements. 2. Full copies of the operating agreement, including amendments, showing the proper delegation of power to the parties acting on behalf of entity in this transaction. 3. Full copies of the Resolution or other authorization for this transaction. 4. Full copies of the delegation of authority for the execution of the documents by the signatories thereon. 5. A full copy of the Certificate of Status of the limited liability company. We received your letters dated December 5 and 30, 2003, wherein you declined our offer and requested full copies of the construction plans and the most recent project schedule (enclosed). Based on our project schedule, you can see our December deadline for acquisition of right of way just passed. We recommend a meeting with your client to review the offer in its entirety in order to facilitate a counter offer or acceptance within the next two weeks. Please direct all future correspondence to me. If you need additional information, please contact me at (626) 458 -7062. Thank you in advance for your consideration of this worthy public project. Very truly yours, JAMES A. NOYES Director of Public Works FARRON CHAVARRIA, Real Property Agent II Acquisition & Revenue Properties Section Mapping & Property Management Division FC:fr.2 /FC 3225 Enc. cc: City of El Segundo (Bellur Devaraj) Parsons Engineering (Pete Tuccillo) i Palmieri, Tyler, Wiener, Wilhelm & Waldron LLP (Michael Leifer) bc: Mapping & Property Management (Ghazarian, Thomas) 31(; MFRR 30 2004 10:21RM HP LRSERJET 3200 JAMES A. NOY''S, Dheeler MAPPING F, PROPERTY MANAGEMENT DIVISION COUNTY OF LOS ANGELES September 29, 2003 DLPARTMENT OF PUBLIC WORKS 'o Enrich Lives Through EHective and Caring Service' N`,r. Mark Belluomini Exa�cutive Vice President CTTREALTY CORPORATION 20151 West Birch, Suits 200 Newport Beach, CA 92660 Gear Mr. Belluomini: 900 SOUTTIPREMONT AVENUE ALHAMBRA. CALIFORNIA 91803.1331 Telsphone:(626) 458 -1100 www.ladpw.org DOUGLAS STREET GRADE SEPARATION PROJECT PARCELS 2-3R, 2 -3U, AND 2.311E PROPOSED RIGHT OF WAY ACQUISITION FEDERAL PROJECT NO. RPSTPL -5235 (008) ADDRESS ALL CORRESPONDENCE TO: P.O. BOX 1460 ALHAMBRA, CALIFORNIA 91802.1460 IN REPLY PLEASE M P -2 REFER TO PILE: M02D6854 This letter is in follow up to our previous letter dated January 2, 2003 (copy enclosed), and subsequent meeting with Mr. David Ball on January 16, 2003. As you are aware, the City of El Segundo is planning the subject project in order to connect Douglas Street between Park Place and Alaska Avenue in the City of El Segundo. The County of Los Angeles Department of Public Works is handling the acquisition of right of way on behalf of the City. The proposed project consists of the construction of a below -grade roadway crossing, under the existing Metropolitan Transportation Authority -owned freight track (operated by the Burlington /Northern Santa Fe Railroad), and an overhead Green Line station platform. This project will affect property owned by CTF2 Alaska LLC located at 223.8 Alaska Avenuet601Hawaii Street, In the City of El Segundo. The scope of work on your property will involve the removal and relocation of a six -foot -high chain link fence, removal of asphalt paving, removal of six -inch concrete curb and gutter, and removal of '10 (ten) small trees. The areas needed are indicated on the enclosed construction drawings and right of way maps. in order to perform this work, the City is proposing to acquire fee title to Parcel 2 -3R (2,255± s.f.) for road purposes; a utility easement over Parcel 2 -3U (1,907 ±s.f.) for two underground oil lines to Shell and Equilon; and a utility easement to Southern California Edison on Parcel 2 -31E (3,113: s.f.) for access to their towers and power lines. A permit will also be needed to run a transmission line fmm the City's transformer to service your building. We will send you the ingress /egress, utility easement and permit under separate cover. Please refer to the latest (updated) right of way certification map and construction drawings. P.5 190 EXHIBiT " A, h4 -, MAR 30 2004 10:218M HP LASERJET 3200 P.6 Mr. Mark Belluomini September 29, 2003 Page 2 Based on our appraisal of the rights being requested at this time, we are enclosing a Written Summary of Just Compensation and we are prepared to pay the appraised value of $106,300 for the road area only (Parcel 2 -311). The offer amounts for the remaining parcels (2 -31E ,and 2 -3U) will be submitted to you once we have the easement documents for you to execute. The enclosed acquisition package includes the following: 1. The County of Los Angeles Department of Public Works Information Brochure Explaining Real Property Acquisition Procedures. 2. Non- Discrimination Policy- Title VI Survey Form and Receipt. 3. Written Summary of Just Compensation with map showing, in color, the property being acquired. 4. Agreement to Convey and Claim for Payment form. An original and duplicate Road Deed with attached legal descriptions conveying the permanent rights to the City of El Segundo. 6. Receipt. Please review the enclosures and, if the proposed settlement figure meets with your approval, sign and return the following in the self - addressed, stamped envelope provided: 1. The Title VI Non - Discrimination Policy Survey. 2. The Agreement to Convey and Claim for Payment, including your Social Security Number or Taxpayer Identification Number. 3. The original document, which must be notarized. 14. The Receipt for all documents included herein. The copies are provided for your records. If you are unable to have the document iotarized, please contact me and I will arrange to acknowledge your signature. 191 1/6 MAR 30 2004 10:21AM HP LASERJET 3200 Mr. Mark Beiluomini September 29, 2003 Page 3 In order to record the document, we must verify the authority of signatories. The documents to be executed on behalf of CTF2 Alaska LLC should be accompanied by the following: 1 Full copies of the articles of organization, including amendmentsfrestatements. 2. Full copies of the operating agreement, including amendments, showing the proper delegation of power to the parties acting on behalf of entity in this transaction. 3. Full copies of the resolution or other authorization for this transaction. 4. Full copies of the delegation of authority for the execution of the documents by the signatories thereon. 191. A full copy of the Certificate of Status of the limited liability company. Please telephone me at (626) 458 -7062 if you need any additional information. Based on our anticipated construction schedule, we would appreciate a response within 30 days. Thank you in advance for your consideration of .this worthy public road improvement project. Very truly yours, NAMES A. NOYES 01rector of Public Works S IGNED A14D SENT FARRON CHAVARRIA, Real Property Agent 11 Acquisition & Revenue Properties Section Mapping & Property Management Division p.7 ZC:jb tnAtrFC58 Enc. cc: City of El Segundo (Bellur K. Devaraj) Parsons Engineering (Pete Tuccciilllo) bc: Mapping & Property ManagemiiPnt (Abramson, Thomas) 192 616 Y7M�� / 2004 AR 2 NOTICE OF HEARING PUBLIC WORKS ENGINEERING NOTICE OF HEARING REGARDING THE INTENTION OF THE CITY OF EL SEGUNDO, CALIFORNIA TO ADOPT A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF PROPERTY LOCATED AT 810 SOUTH DOUGLAS STREET, EL SEGUNDO, CA 90245 ASSESSOR PARCEL NUMBER 4138- 011 -036 [Code of Civil Procedure §1245.2351 TO: INNKEEPERS SUMMERFIELD GENERAL II, L.P., A VIRGINIA LIMITED PARTNERSHIP, AND ALL OTHER OWNERS OF AND PERSONS INTERESTED IN THE PROPERTY HEREINAFTER DESCRIBED: YOU ARE HEREBY NOTIFIED, pursuant to Code of Civil Procedure Section 1230.010, et seq., that the City Council of the City of El Segundo ( "City ") intends to consider the adoption of a Resolution of Necessity for acquisition by eminent domain of interests in certain real property ( "Property ") for the construction of a street gap closure and railroad grade separation. The Property consists of a 6,006 square foot temporary construction easement and a 4,471 drainage easement and is located at 810 South Douglas Street, El Segundo, APN 4138- 011 -036 and is legally described in Exhibit A, attached hereto. Please note the City is researching its rights in regard to the drainage easement interest as documents indicate dedication to the City was required pursuant to a prior agreement. The hearing will be held on April 6, 2004 at 7:00 p.m., or as soon thereafter as the City Council can hear said matter, at El Segundo City Hall, 350 Main Street, El Segundo, California 90245. You, as a person claiming or having an interest in and to the Property, are hereby notified that you have the right to appear and be heard on the issues to be considered at that hearing. The issues which will be considered are set forth in California Code of Civil Procedure Section 1240.030, and include: 1. Whether or not the public interest and necessity require the Project; 2. Whether or not the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; 3. Whether or not the property sought to be acquired is necessary for this Project. If you wish to be heard at this hearing, you MUST FILE A WRITTEN REQUEST, indicating your intent to appear and be heard, within fifteen (15) days of the mailing of this notice by filing or delivering that written request to the City of El Segundo, Attention: Cindy Mortesen, City Clerk, 350 Main Street, El Segundo, California 90245. .L n J �xF}I13fr 8 You may use the enclosure for the purpose of notifying the City of El Segundo of your intent and desire to be heard. Your failure to timely file a written request to appear and be heard may result in a waiver of your right to be heard. For further information, contact Bellur Devaraj at (310) 524 -2358. Bellur Devaraj Pty Engineer Project Manager Dated and Mailed: March 19, 2004 X94 Name Address Date REQUEST TO BE HEARD ON RESOLUTION OF NECESSITY FOR THE ACQUISITION OF CERTAIN REAL PROPERTY Signature Telephone 195 EXHIBIT A Land Description 29G File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N. 4138-011-036 T.G. 732 (J3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION PARCEL NO. 2 -10T: That portion of Parcel 2, as shown on map filed in Book 208, pages 60 and 61, of Parcel Maps, in the office of the Recorder of the County of Los Angeles, within a strip of land 20 feet wide, the northerly and northwesterly sidelines of said strip being those certain courses shown as having bearings and distances of N 89 °59'50" E 217.93 feet and N 42 °31'11" E 73.57 feet in the generally northerly boundary of said Parcel 2. The southerly and southeasterly sidelines of above - described 20 -foot strip of land shall be prolonged at the angle point so as to terminate at their point of intersection. Containing: 6006± square feet. APPROVED AS TO DESCRIPTION OF LOS ANGELES $y Q(11 `W' S SG CADASTRAL ENGINEER II Mapping and Property Management Division EXHIBIT A 197 File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N. 4138-011-036 T.G. 732 (J3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION PARCEL NO. 2 -10DE: That portion of Parcel 2, as shown on map filed in Book 208, pages 60 and 61, of Parcel Maps, in the office of the Recorder of the County of Los Angeles, within a strip of land 15 feet wide, the northerly and northwesterly sidelines of said strip being those certain courses shown as having bearings and distances of N 89 159'50" E 217.93 feet and N 42 °31'11" E 73.57 feet in the generally northerly boundary of said Parcel 2. The southerly and southeasterly sidelines of above- described 15 -foot strip of land shall be prolonged at the angle point so as to terminate at their point of intersection. Containing: 4471± square feet. APPROVED AS TO DESCRIPTION Mor-CF1 IG , LW 4- COUNTY OF LOS ANGELES By llg S G CADASTRAL ENGINEER II Mapping and Property Management Division EXHIBIT A SCG C: WyFiles \Road\Douglas \Legais.doc X98 DECLARATION OF PROOF OF SERVICE BY CERTIFIED MAIL I, the undersigned, declare as follows: I am over the age of eighteen (18) and not a party to the above - entitled action. My business address is 611 West Sixth Street, Suite 2500, Los Angeles, California 90017. On March 19, 2004, I served true copies of the foregoing Notice of Hearing on each of the following named persons by placing for deposit, by certified mail return receipt requested, in the United States Postal Service sealed envelopes containing the same on said date at my said place of business addressed respectively, as follows: Mr. Mark Murphy General Counsel & Secretary Innkeepers USA Trust 306 Royal Poinciana Way Palm Beach, FL 33480 (Fax) (561) 833-2352 Ann Williams General Manager Summerfield Suites by Wyndham -El Segundo 810 So. Douglas Street El Segundo, CA 90245 I am readily familiar with the business' practice for collection and processing of correspondence for mailing with the United States Postal Service. I know that the correspondence was deposited with the United States Postal Service on the same day this declaration was executed in the ordinary course of business. I know that the envelope was sealed and, with postage thereon fully prepaid, placed for collection and mailing on this date in the United States mail at Los Angeles, California. I declare under penalty of perjury under the laws of the State of California that the above is true and correct. Executed this 19th day of March 2004 at Los Angeles, California. ANNETTE MER i 9;3 GO 114 NOTICE OF HEARING PUBLIC WORKS ENGINEERING NOTICE OF HEARING REGARDING THE INTENTION OF THE CITY OF EL SEGUNDO, CALIFORNIA TO ADOPT A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF PROPERTY LOCATED AT 601 HAWAII STRRET, EL SEGUNDO, CA 90245 ASSESSOR PARCEL NUMBER 4138 - 010 -010 [Code of Civil Procedure §1245.235] TO: CTF2- ALASKA, LLC; CT REALTY CORPORATION AND ALL OTHER OWNERS OF; AND PERSONS INTERESTED IN THE PROPERTY HEREINAFTER DESCRIBED: YOU ARE HEREBY NOTIFIED, pursuant to Code of Civil Procedure Section 1230.010, et seq., that the City Council of the City of El Segundo ( "City ") intends to consider the adoption of a Resolution of Necessity for acquisition by eminent domain of interests in certain real property ( "Property ") for the construction of a street gap closure and railroad grade separation. The Property consists of a fee interest of approximately 2,255 square feet; a permanent utility easement interest of approximately 1,907 square feet and a permanent ingress and egress easement of approximately 3,077 square feet and is located at 601 Hawaii Street, El Segundo, APN 4138 - 010 -010 and is legally described in Exhibit A, attached hereto. The hearing will be held on April 6, 2004 at 7:00 p.m., or as soon thereafter as the City Council can hear said matter, at El Segundo City Hall 350 Main Street, El Segundo CA 90245. You, as a person claiming or having an interest in and to the Property, are hereby notified that you have the right to appear and be heard on the issues to be considered at that hearing. The issues which will be considered are set forth in California Code of Civil Procedure Section 1240.030, and include 1. Whether or not the public interest and necessity require the Project; 2. Whether or not the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; 3. Whether or not the property sought to be acquired is necessary for this Project. If you wish to be heard at this hearing, you MUST FILE A WRITTEN REQUEST, indicating your intent to appear and be heard, within fifteen (15) days of the mailing of this notice by filing or delivering that written request to the City of El Segundo, Attention: Cindy Mortesen, City Clerk, 350 Main Street, El Segundo CA 90245 9w fr -HID1 i You may use the enclosure for the purpose of notifying the City of El Segundo of your intent and desire to be heard. Your failure to timely file a written request to appear and be heard may result in a waiver of your right to be heard. For further information, contact Bellur Devaraj at (310) 524 -2358. k6"eIL--q Bellur Devar , City Engineer Project ManAger Dated and Mailed: March 19, 2004 r)O Name Address Date REQUEST TO BE HEARD ON RESOLUTION OF NECESSITY FOR THE ACQUISITION OF CERTAIN REAL PROPERTY Signature Telephone 202 EXHIBIT A Land Description C- File with: DOUGLAS STREET (2) Gap Closure /Grade Separation Affects: West Coast Basin Barrier Project Parcel No. 48, 176 -RW4 A.P.N. 4138- 010 -010 T.G. 732 (J3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION PARCEL NO. 2 -3R: That portion of that certain parcel of land in Lot 26, Tract No. 26557, as shown on map recorded in Book 675, pages 95 through 98, inclusive, of Maps, in the office of the Recorder of the County of Los Angeles, described as PARCEL 2 in deed recorded on March 1, 2001, as Document No. 01- 0337062, of Official Records, in the office of said recorder, within the following described boundaries: , Beginning at the most westerly corner of said lot; thence North 42 030'32" East, along the northwesterly line of said lot, a distance of 37.97 feet; thence South 21'33'56" East 28.18 feet to a point, said point being the beginning of a non - tangent curve concave southwesterly and having a radius of 371.00 feet, a radial of said curve to said point bears North 49 049'43" East; thence southeasterly, along said curve, through a central angle of 15 °21'24 ", an arc distance of 99.44 feet to a point on the southwesterly line of said lot, said last- mentioned point being distant southeasterly 121.11 feet, along said southwesterly line, from said most westerly corner; thence northwesterly, along said southwesterly line, to the point of beginning. Containing: 2255± square feet. To be known as DOUGLAS STREET. APPROVED AS TO DESCRIPTION AEr-i l 24 '2005 COUNTY OF LOS ANGELES a By S>TZ IS G CADASTRAL ENGINEER II Mapping and Property Management Division EXHIBIT A 204 File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N. 4138 -010 -010 T.G. 732 (J3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION PARCEL NO. 2 -3U: Part A: That portion of that certain parcel of land in Lot 26, Tract No. 26557, as shown on map recorded in Book 675, pages 95 through 98, inclusive, of Maps, in the office of the Recorder of the County of Los Angeles, described as PARCEL 2 in deed recorded on March 1, 2001, as Document No: 01- 0337062, of Official Records, in the office of said recorder, within a strip of land 10 feet wide, the southwesterly sideline of said strip of land being described as follows: Commencing at a point in the northwesterly line of said lot, said point being distant North 42 030'32" East 37.97 feet, along said northwesterly line, from the most westerly corner of said lot; thence South 21 033'56" East 28.18 feet to a point, said last- mentioned point being the beginning of a non - tangent curve concave to the southwest and having a radius of 371.00 feet, a radial of said curve to said last - mentioned point bears North 49 049'43" East; thence southeasterly, along said curve, through a central angle of 15 021'24 ", an arc distance of 99.44 feet to a point on the southwesterly line of said lot, said last- mentioned point being distant southeasterly 121.11 feet, along said southwesterly line, from said most westerly corner; thence South 47 029'18 "East, along said southwesterly line, a distance of 43.89 feet to the most southerly corner of said PARCEL 2; thence northeasterly, along the southeasterly line of said PARCEL 2, a distance of 1.11 feet to a point on a curve concentric with and 20 feet northeasterly, measured radially, from said curve described as having a radius of 371.00 feet, said last- mentioned point also being the TRUE POINT OF BEGINNING; thence northwesterly, along said concentric curve, through a central angle of 25 120'40 ", an arc distance of 172.96 feet to said northwesterly line. EXHIBIT A Page 1 of 2 2 0;5 The northeasterly sideline of the above - described 10 -foot strip of land shall be shortened southerly and northwesterly so as to terminate in said southeasterly and northwesterly lines, respectively. That portion of above - mentioned Lot 26 within the following described boundaries: Beginning at the most southerly corner of above mentioned PARCEL 2; thence North 47 029'18 "West, along the southwesterly line of said lot, a distance of 14.14 feet; thence North 9029'34 "West 32.22 feet to the southwesterly sideline of that 10- foot strip of land in above - described Part A; thence southeasterly, along said southwesterly sideline, to the southeasterly line of said PARCEL 2; thence southwesterly, along said southeasterly line, to the point of beginning. Total area of PARCEL NO. 2 -3U, having two parts, containing: 1907+ square feet. APPROVED AS TO DESCRIPTION Ctaf?i 8 , `1003 COUNTY OF LOS ANGELES a By 4 S i G CADASTRAL ENGINEER II Mapping and Property Management Division EXHIBIT A Page 2 of 2 SCG C:\MyFiles \Road \Douglas \Legals.doc 2 0 File with: DOUGLAS STREET (2) Gap Closure /Grade Separation Affects: West Coast Basin Barrier Project Parcel No. 48, 176 -RW4 A.P.N. 4138-010-010 T.G. 732 (J3) I.M. 069 -157 Fourth District M02D6854 LEGAL DESCRIPTION PARCEL NO. 2 -31E: That portion of that certain parcel of land in Lot 26, Tract No. 26557, as shown on map recorded in Book 675, pages 95 through 98, inclusive,'of Maps, in the office of the Recorder of the County of Los Angeles, described as PARCEL 2 in deed recorded on March 1, 2001, as Document No. 01- 0337062, of Official Records, in the office of said recorder, within a strip of land 20 feet wide, the southwesterly sideline of said strip being described as follows: Beginning at a point in the northwesterly line of said lot, said point being distant North 42 030'32" East 37.97 feet, along said northwesterly line, from the most westerly corner of said lot; thence South 21 033'56" East 28.18 feet to a point, said point being the beginning of a non - tangent curve concave to the southwest and having a radius of 371.00 feet, a radial of said curve to said point bears North 49 049'43" East; thence southeasterly, along said curve, through a central angle of 15 021'24 ", an arc distance of 99.44 feet to a point on the southwesterly line of said lot; said last- mentioned point being distant southeasterly 121.11 feet, along said southwesterly line, from said most westerly corner. The northeasterly sidelines of the above- described 20 -foot strip of land shall be prolonged or shortened at the angle point so as to terminate at their point of intersection, and shall be extended northerly and southerly so as to terminate in said northwesterly line and southwesterly line of said Lot 26, respectively. Containing: 3077± square feet. APPROVED AS TO DESCRIPTION may I ES 2003 COUNTY OF LOS ANGELES SUp JS G CADASTRAL ENGINEER E Mapping and Property Management Division EXHIBIT A 207 DECLARATION OF PROOF OF SERVICE BY CERTIFIED MAIL I, the undersigned, declare as follows: I am over the age of eighteen (18) and not a party to the above - entitled action. My business address is 611 West Sixth Street, Suite 2500, Los Angeles, California 90017. On March 19, 2004, I served true copies of the foregoing Notice of Hearing on each of the following named persons by placing for deposit, by certified mail return receipt requested, in the United States Postal Service sealed envelopes containing the same on said date at my said place of business addressed respectively, as follows: Mr. Marc Belluomini Executive Vice President CT Realty Corporation 20151 West Birch, Suite 200 Newport Beach, CA 92660 Mr. Michael Leifer Palmieri, Tyler, Wiener, Wilhelm & Waldron, LLP 2603 Main Street East Tower - Suite 1300 Irvine, CA 92614 I am readily familiar with the business' practice for collection and processing of correspondence for mailing with the United States Postal Service. I know that the correspondence was deposited with the United States Postal Service on the same day this declaration was executed in the ordinary course of business. I know that the envelope was sealed and, with postage thereon fully prepaid, placed for collection and mailing on this date in the United States mail at Los Angeles, California. I declare under penalty of perjury under the laws of the State of California that the above is true and correct. Executed this 19th day of March 2004 at Los Angeles, California. ETTE KRAMER RESOLUTION NO. A RESOLUTION FINDING AND DETERMINING THAT THE PUBLIC INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN PROPERTY FOR PUBLIC PURPOSES The City Council does resolve as follows: SECTION 1 _ The City Council, after consideration of the staff report, staff presentation, discussion, oral testimony and evidence presented at its April 6, 2004 meeting finds, determines and declares as follows: A. The public interest, convenience and necessity require the acquisition by City of interest in and to certain real property located at 810 South Douglas Street, Assessor Parcel Number 4138 - 011 -036 for public purposes; to wit, for the construction of a street gap closure and railroad grade separation and all uses appurtenant thereto (the "Project ") ; and B. The interest in real property to be acquired is a temporary construction easement and a drainage easement in the real property described on Exhibit A, attached hereto and incorporated herein by this reference ('Property "). The Property is located within the City of El Segundo, County of Los Angeles, State of California. A map showing the general location of the Property is attached hereto, marked Exhibit B and incorporated herein by reference and made a part hereof; and C. The Project is planned and located in a manner that will be most compatible with the greatest public good and least private injury in that the City at this particular location want to construct a street gap closure project and a street grade separation project; and D. The taking of the Property is necessary for the stated Project and such taking is authorized by § 19, Article I of the California Constitution, §§ 37350.5 and 38000 et seq. of the California Government Code, § 1230.010 et seq., of the California Code of Civil Procedure, and other applicable law. The acquisition of the Property is necessary to relieve traffic congestion by the creation of an additional arterial route and to improve efficient of local and regional transit services thereby encouraging transit use; and E. The offer to purchase required by California Government Code § 7267.2 has been made to the owners of the Property. F. The necessary notice of hearing on this Resolution has been given, as required by Code of Civil Procedure § 1245.235. -1- ��1� G. The Planning Commission is scheduled to deliberate whether the Project conforms with the City's General Plan as required by Government Code §65402(a) on April 8, 2004. H. All conditions and statutory requirements to exercise the power of eminent domain to acquire the Property described herein have been complied with by the City. SECTION 2 The City Council declares that it is its intention to acquire said Property in accordance with the provision of the laws of the State of California governing condemnation procedures. SECTION 3. The City Council further finds that if any portion of the area of the Property was appropriated to some public use, the public uses to which it is to be applied by City, as described above, are more necessary and paramount public uses, pursuant to Code of Civil Procedure section 1240.610. SECTION 4. The City Attorney is authorized and directed to prepare, institute and prosecute such proceedings in the proper Court having jurisdiction thereof as may be necessary for the acquisition of said Property, including the filing of an application for an Order for Possession prior to judgment. SECTION 5: This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution. PASSED AND ADOPTED this _ day of 2004. APPROVED AS TO FORM: Mark D. Hensley, City Attorney L-n Karl H. Berger, Assistant City Attorney -2- Mike Gordon, Mayor ow CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five; that the foregoing resolution, being RESOLUTION NO. was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the day of 2004, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTENTION: NOT PARTICIPATING: WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of .2004. Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) iii 05/29/2004 12:45 FAX 210 236 2700 BURKE WILLIAM File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N. 4138 -011 -036 T.G. 732 (.13) I.M. 069 -157 Fourth District M02DS854 LEGAL DESCRIPTION PARCEL NO. 2.10T: 2005 That portion of Parcel 2, as shown on map filed in Book 208, pages 60 and 61, of Parcel Maps, in.the office of the Recorder of the County of Los Angeles, within a strip of land 20 feet wide, the northerly and northwesterly sidelines of said strip being those certain courses shown as having bearings and distances of N.89PS9'50" iT 217,93 feet and N 42 031'11" E 73.57 feetin the generally northerly boundary of said Parcel 2. The southerly and southeasterly sidelines of above - described 20 -foot strip of land shall be prolonged at the angle point so as to terminate at their point of intersection, Containing: 6006± square feet. APPROVED AS TO DESCRIPTION OF LOS ANGELES S S G CADASTRAL ENGINEER II Mapping and Property Management Division. EXHIBIT A 212 03/29/2004 12:45 FAX 213 236 2700 BURKE WILLIAM PARCEL NO.2 -10DE: [a 006 File with: DOUGLAS STREET (2) Gap Closure /Grade Separation A.P.N. 4138 -011 -036 T.G. 732 (J3) I.M. 069 -157 Fourth District M02DS854 LEGAL DESCRIPTION That portion of Parcel 2, as shown on map filed in Book 208, pages 60 and 61, of Parcel Maps, in the office of the Recorder of the County of Los Angeles; withih a strip of land 15 feet wide, the northerly and northwesterly sidelines of said strip being those certain courses shown as having bearings and distances of N 89 159'50" E 217.93 feet and N 42 °31'11" E 73.57 feet in the generally northerly boundary of said Parcel 2. The southerly and southeasterly sidelines of above - described 15 -foot strip of land shall be prolonged at the angle point so as to terminate at their point of intersection. Containing: 4471± square feet. APPROVED AS TO DESCRIPTION March l G COUNTY OF LOS ANGELES 13 S G CADASTRAL ENGINEER II Mapping and Property Management Division. EXHIBIT A SCG C:\ MyFiles \Road\Douglas\Legals.doc 7 ^ J" OF LDS„N ! �I1CN DALIFORrOP JAMES A. NOYES, Director August 18, 2003 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS "To Enrich Lives Through Effective and Caring Service" Mr. Gregory Fay Chief Accounting Officer Innkeepers USA 306 Royal Poinciana Plaza Palm Beach, FL 33480 Dear Mr. Fay: 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803 -1331 Telephone: (626) 458 -5100 www.ladpw.org R E Q$t!(f E b AUG 112003 _y ADDRESS ALL CORRESPONDENCE TO: P.O. BOX 1460 ALHAMBRA, CALIFORNIA 91802 -1460 IN REPLY PLEASE REFER TO FILE: MP -2 M02D6854 . DOUGLAS STREET GAP CLOSURE & GRADE SEPARATION PROJECT PARCEL 2 -10T - ASSESSOR IDENTIFICATION NO. 4138 - 011 -036 SITUS: 810 SOUTH DOUGLAS STREET, EL SEGUNDO ACQUISITION OF RIGHT OF WAY -FEDERAL NO. RPSTPL -5235 (008) This letter is in follow up to our previous letter dated January 2, 2003 (copy enclosed) and subsequent meeting on January 16, 2003 with Ms. Ann Williams, General Manager at the Summerfield Suites in the City of El Segundo. As you may be aware, the City of El Segundo is planning the subject project in order to connect Douglas Street between Park Place and Alaska Avenue in the City of EI Segundo. The County of Los Angeles Department of Public Works is handling the acquisition of Right of Way on behalf of the City. The proposed project will involve the construction of a below grade roadway crossing, under the existing Metropolitan Transportation Authority owned freight track (operated by the Burlington Northern Santa Fe Railroad) and overhead Green Line Station Platform. The project will affect the Summerfield Suites property located at 810 South Douglas Street, and will require the relocation of an existing covered storm drain to a lower elevation as indicated on the enclosed construction drawings. In order to perform this work, the City 's contractor will require a temporary construction area over the Northerly 20 feet of your property as shown on sheet 4 of the enclosed Certification maps. A 15- foot -wide drainage easement already exists within that area. ""42,14 1( eylAi A-F vA 113 $10 5 . 7btlGLA5 Sr r' Mr. Gregory Fay August 18, 2003 Page 2 In order to proceed with the project, the City of El Segundo is proposing to purchase a temporary construction easement. A Permit for driveway reconstruction will also be needed to adjust it to the new road elevation. We will be sending you the Permit for the reconstruction of your driveways under separate cover. Once the project is completed, the pavement will be restored to a condition similar to or better than previously existed. Based on our appraisal, we are prepared to pay you $20,500 for the temporary construction easement rights. This payment includes reimbursement for your relocation and replacement of two satellite dishes, trash enclosure (block wall and screening), and portable document storage container, prior to aind after our construction project. The enclosed acquisition package includes the following: 1. County of Los Angeles Department of Public Works Informational Brochure explaining real property acquisition procedures. 2. Non - Discrimination Policy - Title VI Survey Form. 3. Written Summary of Just Compensation with map showing, in color, the Temporary Easement being acquired. 4. Agreement to Convey and Claim for Payment form. 5. Original and duplicate Temporary Construction Easements with an attached legal description conveying the temporary rights to the City of El Segundo. 6. Receipt. Please review the enclosures and, if the proposed settlement figure meets with your approval, sign and return the following in the self- addressed, stamped envelope provided: 1. Title VI Non - Discrimination Policy Survey. 2. Agreement to Convey and Claim for Payment, including your Tax Identification Number. 3. Original Temporary Construction Easement, which must be notarized. 4. Receipt for all documents included herein. 21.f-5 �q3 r jMr. Gregory Fay / August 18, 2003 Page 3 The duplicates are provided for your records. Your immediate attention to this matter is greatly appreciated. Please telephone me at (626) 458 -7062, Monday through Thursday, between the hours of 7 a.m. and 5:45 p.m., P.S.T., or email fchavarr @ladpw.org if you need any additional information. Thank you for your cooperation. Very truly yours, JAMES A. NOYES Director of Public Works FARRON CHAVARRIA, Real Property Agent Il x Acquisition & Revenue Properties Section Mapping & Property Management Division FC:adg P2000GLAS ST 2 -1 OT Enc. cc: Summerfield Suites (Ann Williams) City of El Segundo (Bellur Devaraj) Parsons Engineering (Pete Tuccillo) bc: Mapping & Property Management (Ghazarian, Thomas) '2-/,G 3f 3 I m Ln F uj I-_ = O p Z uj m o CL W Oz' Ln Ln cr) " o io t2 u I Ln I O H N oeTV / r Q O o ry W vi c x, cm o '� N .� c o. z O Q W LL c 4 a a �. CM OL GE a J o Q z N a ouol�_ t - N 217 Kiarr Df= WAY MAP y4it I or 2Z N LL L O U Q � I Q Q \ I i I i a a t 2 N / I cn W f- n m M i O # N N N. R d II II II d•- `d LL LL. LL IL S to y yN i C Q N W C? N N d V N J O T T N S S LL LL LL S LL y y CO ON O i�D W T u'7 t0 I « a I ow CO SO Tp%pS e s d S 9 Z a in i d � t d d E N O N d N m V I d N N U i C N M O x N LL L O U Q � I Q Q \ I i I i a a t 2 N / rr 9' •r w a g a r ON N N 1 � m 8 F,169T e f __WAY MAP SRT 2 OF 2 °r d g�< W.� V c 0 118 st n2 I cn W f- e 0 J W WC G 2 2 ¢ rr 9' •r w a g a r ON N N 1 � m 8 F,169T e f __WAY MAP SRT 2 OF 2 °r d g�< W.� V c 0 118 st n2 C f 1 1 ti1.) EL SEGUNDO CITY COUNCIL MEETING DATE: April 6, 2004 AGENDA ITEM STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action regarding City co- sponsorship and the waiver of fees for a charitable event known as "Keep LA Running ", a 5k Walk/Run and 1 OK Run to be held on July 11, 2004 from 8 AM until noon. RECOMMENDED COUNCIL ACTION: 1. Review City co- sponsorship of the nonprofit event, "Keep LA Running "; 2. Consider waiving City fees in the amount of $8,874; and /or 3. Alternatively discuss and take other action related to this item. BACKGROUND & DISCUSSION: "Keep LA Running" is a non - profit, 501 (c) (3) charitable organization which sponsors a 5k Walk/Run and 10k Run. The Run benefits several different charities including the El Segundo Educational Foundation. The event was founded by the Service Employees International Union Local 660, Los Angeles County Employees, which assists with the event. The organizers have asked that City fees be waived in support of this nonprofit event. These fees include: Police Department staff at $6586 (with a contingency of $1,328 should two additional officers be required). This $7,914 for Police service is approximately 25% of the Police overtime budget for the year. In addition it would require Public Works Department staff at $600, use of Library Park $360, for a total of $8,874 including the contingency. This is the eleventh anniversary of the event and the second year that it will be held in El Segundo. Organizers hope to attract between 1,000 - 1,200 participants this year; many will be visiting El Segundo for the first time. A variety of activities before and after the race will bring economic benefits to City businesses. A kick -off dinner will be held at a local restaurant and runners will be referred to local establishments for breakfast the morning of the race. Following the race, a barbeque will be held at Library Park featuring a small, contained beer garden on Richmond Street. The nonprofit sponsor will obtain all required licenses. They have completed a special events permit application and will provide indemnification. A map of the racecourse, which has been reviewed and approved by City Departments, is shown on Attachment A. Residents, with access affected by street closures, will be notified prior to the race. ATTACHED SUPPORTING DOCUMENTS: Attachment A - Letter from "Keep LA Running" race director, Walt Walston Attachment B - Map of Race Course for "Keep LA Running" Attachment C — Letter of Agreement with El Segundo Police Department Operating Budget: N/A Amount Requested: $8,874 Account Number: Various Project Phase: N/A Appropriation Required: _X_ Yes _ No ORIGINATED BY: Vii,/-;-, „, DATE: �I DUC�I t/ _3 -a Li -o y Stacia Mancini, Recreation and Parks Director REVIEWED BY: DATE- Mary Strenn, ,;�g /y 16 'L2O aa2 �o�ro�rs The Honorable Mayor Mike Gordon Members of die City Council The City of El Segundo, Calif. 350 Main Street El Segundo, CA 90245 Dear Mayor Gordon and Members of the City Council On Sunday, July 11, 2004, we would like to stage the 1Im annual Keep LA Running 5K Run & Walk, i0K Run, Kiddie fun run, and Coastal Bike Cruisc charity event in Downtown El Segundo. This event is a 5010 (3) charity. This amoral fund raising event supports the El Segundo Educational Foundation, the Rosa Parks Neonatal Intensive Care Unit at Martin Luther King Jr.JDrewMedical Center, the Pediatric Oncology Service, Women's and Children's Hospital of LAC +USC Medical Center, the Breast /Ovarian Cancer National Alliance, the American Cancer Society, and the SEW Local 660 LA County I Special Districts Employees Disaster Fund We invite the City of El Segundo to co- sponsor this event and waive all City fees associated with the Keep L.A. Running event. As a co- sponsor of this event, the City of Et Segundo will have the City of EI Segundo namellogo on all race flyers, on race posters, and on race T- shirts. The city of El Segundo will be mentioned in newspaper, radio and TV advertising done on the event We are asking the City of El Segundo to allow the use of Library Park for our staging area and for the use of the indicated streets of El Segundo for our course. A new course has been developed to be entirely within the city of El Segundo, utilizing a lot of the business district. (Please see the attached proposed course map and course description) The 5K Run and Walk & l OK .Run will start at 9 am. on .El Segundo Blvd., just West of Main Street The Finish will be on Main Street, in front of Library Pa& , W ith the assistance of iheEl Segundo Police Department, we will operate the nor as a `rolling closure" for street closures and openings to minimize street closure times. As the streets need to be safe for our participants, we are requesting the posting of "no Parking" signs on residential streets of the course. We will provide the necessary barricades and road cones as required by the El Segundo Police Department, and will position these devices as required. We are requesting the use of City parking lots for our participants use and the use of the El Segundo Shuttles to transport our participants to and from Library Park, W2 Promotions_. 1666 Asliland Ave., Santa Monica, C& 90405 ... 310 - 829- 41.23 ... (fax) 310-45" 1.59 221. We will notify residents of this event through letters distributed to each home or business along the route, with letters mailed to residents m gated communities. Also, a course map and timeline will be submitted to The El Segundo }Herald newspaper for publication. To attract runners and local residents to the event, we will have a live band playing in Library Park from 8 am to noon, a health and fitness expo to include local, businesses, foot and drink booths with free fruit, bagels, water and a special barbecue ltm b for our participants. We are also again requesting permission to have a beer garden on Richmond Streek between Mariposa and Palm Ave. This would be set up to ABC standards, with proper fencing and a security guard at the gate to check ID's. Seer will only be allowed to be consumed within the fenced beer garden area. Additionally, we are oliering even more exposure to local merchants with their ad or coupon inserted, at no charge, into our participants' goody bags_ We are excited with the possibility of hosting this event for a second year in the City of EJ Segundo and feel that the City will benefit greatly through the exposure that this event will provide. We appreciate your consideration of this request and welcome any comments and suggestions. Sincerely, Walt Walston Race Director 222 r qti KEEP LA RUNNING 2004 (Course description) Start on El Segundo Blvd. at Richmond St. Runners form facing Eastbound. (We form them by the street just before the start at 8 am and then put them into the street for about 5 minutes prior to the start at 8 am. This keeps the Westbound lanes closed from Richmond St. West for only about 10 minutes, or until they all turn onto Main St.) Start on El Segundo at Richmond St. Runners go East on El Segundo to Main Street. North (left) on Main Street, using the Northbound and Southbound lanes of Main St) to Mariposa Ave. East (right) on Mariposa Ave. (using both lanes) to Kansas St. South (right) on Kansas St (using both lanes) to Franklin Ave. West (right) on Franklin Ave. (using both lanes) to Main Street. North (right) on Main street (using both lanes) to the FINISH in front of Library Park, between Mariposa Ave. and Palm Ave .... I OK mmrters continue past the finish and continue North on Main St. to East Oak Ave. (using both lanes) East (right) on E. Oak to Sheldon St. South (right) on Sheldon St. (using both lanes) to Mariposa Ave. East (left) on Mariposa Ave. (using both lanes) to Illinois St. South (right) on llGnois St. (ruing both lanes) to Grand Ave. West (right) on Grand Ave. (using both )anes) to Kansas St. South (left) on Kansas St. (using botb )anes) to Franklin Ave. West (right) on Franklin Ave. (using both lanes) to Main Street. North (right) on Main street (using both lanes) to the FINISH in front of Library Park, between Mariposa Ave. and Palm Ave. 223 YMCR BRRNCHO 70 Mar 23 04 11e53a Fax:213 -251 -9720 El Segundo Rea and Parks Mar 23 2004 11:30 LETTER OF AGREEMENT 322 -3663 P. 03 Prior to the start of theYEEP L.A. RUNNING 5/10K, scheduled for Sunday, July 11, 2004 the organizers will provide de following materials and services: P.t 1. 150 vol unWere for IT. C. Au vabafters must assemble ofatarfMnish lure lbr brig Bnn a! 0690. 2. Promoter to pro vtde Traffic cones and barricades to be placed along race route prior to beginning the event, and picked up upon completion of the event. 3. Notification to all residences and businesses along the race route notifying them of the event and parking/roadway, restrictions that will be required to safely stage gee event. Notification should be completed by July 0, 2004. 4. Reslrooms will be provided near the 'stariffirfW line on Richmond Street and trash facilities located throughout the venue. Promoter mg2iingo for disposal and rival „R1 awnt Hated_ wh by 1330 hours. 5. Post 00 streets affected by the event 72 -hours in advance to the event. 6. Confirm by July 7, 2004, a list of sponsors, vendors and musicians. 7. No skaters / rdlerblades / go-pods on course 6. Gazebo at Library Park will be vacated by 1230 hours. Access to the area surrounding the Gazebo 1Fbellf be available at 1200 hours and the Beer Garden shall be shut down at 1230 hours. Park dean up completed by 1330 hours. The exception being Richmond Street and Palm Avenue adjacent park M necessary. a. The promoter or his designee will secure a one -day ABC Permit related to the sales at the Beer Garden and a copy of which will provided and a Chy of El Segundo Amo~ Nalis Parmh is ranuhmal to Traffic Dlvlalon by July 7, 2004. 10. Liability insurance deemed necessary by the City of El Segundo is required. The cert ficale of insurance will be delivered to the City of EJ Segundo, with a copy provided to the Traffic Division by July 7, 2004. 11. Shall secure written permission from any private land owner related to parking or use of their property. Said landowner shall also be indemnified from liability of the provided insurance documents. On July 7, 2004, at 1000 hours, the Traffic Division. Special Events Coordinator, Parks Representative, other to b etermined Cky officials, and the organizers will meet to finalize sit items on this agreement. AI Graham. -Sergeant Wait Walston, Organizer KEEP RUNNING 3l °Y 225 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE: April 6, 2004 AGENDA HEADING: Mayor Mike Gordon Consideration and possible action to approve a resolution in support of the "Los Angeles County Public Safety and Homeland Security'' /2 Cent Sales Tax Initiative" sponsored by Los Angeles County Sheriff Leroy D. Baca. RECOMMENDED COUNCIL ACTION: 1) Approve attached resolution supporting the "Los Angeles County Public Safety and Homeland Security'' /2 Cent Sales Tax Initiative; 2) Alternatively, discuss and take other action related to this item. BACKGROUND & DISCUSSION: Los Angeles County Sheriff Leroy D. Baca is seeking to qualify an initiative for the November 2004 election entitled the "Los Angeles County Public Safety and Homeland Security' /2 Cent Sales Tax Measure. The initiative seeks countywide voter approval for an additional % cent sales tax that would be distributed to the Sheriff, the County of Los Angeles and incorporated cities in the County for the purpose of enhanced law enforcement services. If approved by voters, the Sheriff estimates that the measure would result in approximately $500 million annually to be dedicated to law enforcement services throughout the County. The funds would be distributed as follows: 5% to the Sheriff who provides countywide law enforcement duties as required by law. The remainder would be allocated to the unincorporated portions of Los Angeles County and every incorporated City within the County. (Please see attached page marked "Background and Discussion ") ATTACHED SUPPORTING DOCUMENTS: Resolution supporting the initiative and additional supporting information from the Sheriff. FISCAL IMPACT: None Operating Budget: Amount Requested: Account Number: Project Phase: Appropriation Required: _Yes _ No Gord/ "dos . DATE: Mary St / nn, City Manager 17 �l °y 0226 Background and Discussion (con't) Of the $500 Million potentially generated by this measure, the City of El Segundo would receive an estimated $1,225,700 annually. The overall purpose and use of the funds would be limited in use for the augmentation of public safety personnel, homeland security and local anti - terrorism efforts. In addition, the Sheriff has indicated that a substantial portions of the funds allocated to his office would be used for the development of enhanced inter - operability efforts throughout the County. In order to receive funding from the measure, the City would have to commit to maintaining its law enforcement budget at FY 2003/2004 base year levels. The measure states that if necessary the base year funding level may be adjusted downward in an amount proportionate to any reductions taking place in the overall City budget as a result of legislative action at the state level. The El Segundo Police Department is supporting this measure, and it is supported by at least six other cities in Los Angeles County, including the Cities of Los Angeles and Long Beach. However, it should be noted that the measure still requires signatures in order to qualify for the ballot and has not yet been endorsed by the Los Angeles Area Fire Chiefs Association. The Fire Chiefs Association remains concerned that the language of the measure, as currently written, limits the flexibility of cities to use the additional funding for all public safety needs. The Sheriff is aware of those concerns and will meet with the Los Angeles Area Fire Chiefs Association on April 22, 2004. Staff continues to review and analyze the measure in its current form and believes the language to be broad enough to allow expenditure of the funds toward any program that supports Homeland Security, which includes EMT and first - responder needs. As such, staff does not believe that the measure includes any prohibition on expenditures that link the funds specifically to law enforcement. There is concern also among some quarters that the measure would serve to obfuscate the "Public Safety and Taxpayer's Protection Act" that the League of California Cities is seeking to qualify also for the November 2004 ballot. Though the wording is somewhat similar, the League measure is statewide and the Sheriff has committed his support toward its passage as well. Finally, there are concerns among some groups that remain philosophically opposed to the imposition of an additional Y2 cent sales during a time in which the Los Angeles basin is recovering from an economic slowdown. Despite those potential shortcomings, the "Public Safety and Homeland Security Sales Tax Initiative," if approved by voters, would provide funding for needed public safety services and equipment and is worthy of the City of El Segundo's support. It is recommended that the City Council approve the attached resolution. 227 RESOLUTION NO. A RESOLUTION OF SUPPORT FOR THE LOS ANGELES PUBLIC SAFETY AND HOMELAND SECURITY % CENT SALES TAX INITIATIVE The City Council resolves as follows: Section 1: The City Council finds and declares as follows: A. Public Safety services are critically important to the security and well -being of El Segundo and to the overall revitalization of Los Angeles County's economic base; B. The current economic condition of the State of California threatens the stability of revenue sources needed to continue local government funding for these needed services; C. The protection of the public safety is the first responsibility of local government and local officials have a responsibility to develop the means necessary to ensure that responsibility is met; D. The "Los Angeles County Public Safety and Homeland Security 1/2 Cent Sales Tax" represents a legitimate method of providing and sustaining funding necessary for the provision of public safety services; E. Los Angeles County Sheriff Leroy D. Baca has committed publicly that a portion of the additional revenues that would be realized upon voter passage of the measure toward the development of a truly inter - operable public safety communications system in Los Angeles County; F. The potential funding provided by the measure is sufficiently flexible to be of tangible benefit to the El Segundo community. Section 2: The City of El Segundo believes that the importance of guaranteeing stable sources of revenue for the provision of public safety services is sufficiently important to make the difficult decision to support a '/z cent increase in the sales tax currently levied in Los Angeles County. Section 3: The City of El Segundo supports the "Los Angeles County Public Safety and Homeland Security % Cent Sales Tax Initiative," as currently proposed by Los Angeles County Sheriff Leroy D. Baca. 228 Section 4: The City Clerk will certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of the City; and shall make a record of proceedings of the City Council in the minutes of the meeting at which same is passed and adopted. Section 6: This Resolution will take effect immediately upon adoption. Mayor Mike Gordon APPROVED AS TO FORM: Mark D. Hensley, City Attorney Karl H. Berger, Assistant City Attorney 229 Legal text of Tax Initiative Page 1 of 6 1111111111111111 1 11 J 11111111111 11111111 (ATTACHMENT B) LOS ANGELES COUNTY PUBLIC SAFETY AND HOMELAND SECURITY 1/2 CENT SALES TAX INITIATIVE PROPOSED LAW SECTION 1: This Act shall be known as "The Public Safety and Homeland Security Tax Act." SECTION 2: Purpose and Intent. The People of the County of Los Angeles find and declare that: (A) Public safety services are critically important to the security and well -being of the County's cit to the growth and revitalization of the County's economic base. (B) The protection of the public safety is the first responsibility of local government and local offic an obligation to give priority to the provisions of adequate public safety services. In order to assist local governments in maintaining a sufficient level of public safety services, proceeds of this section shall be designated exclusively to maintain, improve, or expand fundi law enforcement. Local financial resources to the Sheriff, and city law enforcement agencies s (C) reduced below the adopted budget for the 2003/04 fiscal year. For purposes of this paragraph, the adopted budget for the 2003/04 fiscal year may be adjust reflect reduced expenditures necessitated by reductions in state and federal assistance, or red any other revenue source beyond the control of that local government entity. If a loss or reduction in local general purpose financial resources occurs, proceeds from this O (D) may be used to ensure public safety funding is not reduced below the adopted budget for the fiscal year, only if local financial resources to public safety are not reduced more than the tota of the loss or reduction within the affected year. SECTION 3: Chapter 4.69 known as the Public Safety and Homeland Security Tax Act is hereby ad( County Code to read as follows: Chapter 4.69 THE PUBLIC SAFETY AND HOMELAND SECURITY TAX ACT 4.69.010 The Los Angeles County Transactions and Use Tax. 4.69.020 Imposition of retail transactions tax. http://www.sheriffleebaca.org/legal.html 21 34 3/29/04 Legal text of Tax Initiative 4.69.030 Imposition of use tax. 4.69.040 Definitions. Page 2 of 6 4.69.050 Expenditure plan for the use of revenues received from imposition of the transactions and 4.69.060 Application of sales and use tax provisions of Revenue and Taxation Code. 4.69.070 Adoption of Revenue and Taxation Code Sections 7261 and 7262. 4.69.080 Place of consummation of retail transaction. 4.69.090 Accountability Measures. 4.69.100 Effective and Operative Dates. 4.69.010. The Public Safety and Homeland Security Tax Act. The Ordinance codified in this Chapter shall be known as "The Public Safety and Homeland Security 4.69.020. Imposition of retail transactions tax. There is hereby imposed a tax for the privilege of selling tangible personal property at retail upon e� retailer in the County at a rate of one -half of one percent of the gross receipts of the retailer from ti all tangible personal property sold at retail in the County. This is in addition to all previously impose transactions and use taxes. 4.69.030. Imposition of use tax. There is hereby imposed a complementary tax upon the storage, use or other consumption in the C tangible personal property purchased from any retailer for storage, use or other consumption in the Such tax shall be at a rate of one -half of one percent of the sales price of the property whose storac other consumption is subject to the tax. This is in addition to previously approved use taxes. 4.69.040. Definitions. The following words, whenever used in the Ordinance, shall have the meaning as set forth below: (A) "County" means the incorporated and unincorporated territory of the County of Los Angeles. (B) "City" means any incorporated territory of the County of Los Angeles. (�) "Countywide Interoperability System" means a system of equipment and procedures to provic effective communications between public safety agencies in the County of Los Angeles. "Public Safety and Homeland Security Purposes," are expenditures which maintain, improve, e (D) expand sworn law enforcement, public safety, homeland security, local anti - terrorism and emi response, and include, but are not limited to the following: 1. County Emergency /Disaster Operations 2. County Emergency /Disaster Operations ti 3 Z http: / /www.sheriffleebaca.org /legal.html 3/29/04 Legal text of Tax Initiative Page 3 of 6 3. Expanded role of community- oriented policing 4. Local Anti- terrorism and intelligence gathering Emergency response and related training /preparedness "Transaction" or "Transactions" have the same meaning, respectively, as the words "Sale" or' (E) and the word "Transactor" has the same meaning as "Seller," or "Sale" or "Sales" and "Seller" in Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. "Population" means the most recent annual estimate of population published by the California (F) Department of Finance, or for a newly incorporated city, the County Auditor /Controller's best until that newly incorporated city's population is included in the Department of Finance public Back to top 4.69.050. Expenditure plan for the use of revenues received from the imposition of the tr; and use tax. The revenues received by the County from the imposition of the transactions and use tax shall be u, Public Safety and Homeland Security Purposes, as follows: Purpose of Tax: (A) The revenues raised by this measure will be used to increase security in our County by streng public safety services, homeland security, local anti - terrorism, and emergency response to extraordinary emergencies throughout Los Angeles County. Tax revenues dedicated to the Sh local law enforcement will be used to: provide personnel for law enforcement, local anti - terrorism, homeland security, and communi 1. oriented policing services, whose expanded role will include intelligence gathering, local prepa community awareness, and a first response@ capabilities to extraordinary emergencies; provide communications and specialized equipment for law enforcement personnel throughout 2. Angeles County, including independent cities; and support resources required for Regional an( Countywide a Mutual -Aid@ effectiveness; expand inter - agency coordination and standardized training for public safety services, local ar 3. terrorism, homeland security, intelligence gathering, and a first response@ capabilities (Emeri Operations Center -EOC /Terrorism Early Warning); and 4. other traditional law enforcement services. (B) Allocation of Revenues received by the County. First, from the funds allocated to the County by the State Board of Equalization, the Auditor -C shall be reimbursed for actual and necessary direct and indirect costs incurred while complyirn Ordinance. Actual and necessary direct and indirect costs shall be those from the prior fiscal y shall be apportioned to the County and each city in proportion to each entity =s anticipated sh proceeds of the tax collected pursuant to this Ordinance. 232 http: / /www.sheriffleebaca.org /legal.html 3/29/04 Legal text of Tax Initiative 2. Of the remaining funds: Page 4 of 6 The Oversight Committee provided for in this Ordinance will decide on an equitable allocation (a) Sheriff of Los Angeles County to provide for a Countywide Interoperability system and the one maintenance of that system; (b) five percent will be allocated to the Sheriff of Los Angeles County, who performs Countywide c required by law; The remaining funds shall be distributed to the unincorporated area and all cities within Los Al (c) County, with a minimum allocation of $500,000 to each jurisdiction. The remaining amount st equally distributed based on population percentage. However, the total allocation amount sha exceed a city =s total public safety budget for the previous fiscal year. (C) Maintenance of Effort. In order to assist local governments in maintaining a sufficient level of public safety services, proceeds of this section shall be designated exclusively to maintain, improve, or expand fundi law enforcement. Local financial resources to the Sheriff, and city law enforcement agencies s reduced below the adopted budget for the 2003/04 fiscal year. For purposes of this paragraph, the adopted budget for the 2003/04 fiscal year may be adjust I. reflect reduced expenditures necessitated by reductions in state and federal assistance, or rec any other revenue source beyond the control of that local government entity. If a loss or reduction in local general purpose financial resources occurs, proceeds from this O may be used to ensure public safety funding is not reduced below the adopted budget for the fiscal year, only if local financial resources to public safety are not reduced more than the tota of the loss or reduction within the affected year. (D) Unspent Funds. Any unspent proceeds from this Ordinance by the Sheriff, or a city, within a fiscal year, shall t a public safety reserve trust account established by that entity. Use of those trust funds shall determined under rules and regulations described by this Ordinance, and monitored for accou by an oversight committee described in 4.69.090. 4.69.060. Application of sales and use tax provisions of Revenue and Taxation Code. The provisions contained in Part 1 of Division 2 of the Revenue and Taxation Code (Sales and Use T commencing with Section 6001), insofar as they relate to sales or use taxes and are not inconsister 1.6 of Division 2 of the Revenue and Taxation Code (Transactions and Use _ Tax es), commencing witl 7251, and all amendments thereto shall apply and be part of this Ordinance, being incorporated by herein. Pursuant to the provision of Revenue and Taxation Code Section 7270, the County shall contract wit California State Board of Equalization to perform all functions incident to the administration and opE the ordinance. 4.69.070. Adoption of Revenue and Taxation Code Sections 7261 and 7262. 3 http: / /www.sheriffleebaca.org /legal.html 3/29/04 Legal text of Tax Initiative Page 5 of 6 Pursuant to the provision of Revenue and Taxation Code Section 7262.2, the required provisions of 7261 and 7262 of that Code as now in effect or as later amended are adopted by reference in this ( 4.69.080. Place of consummation of retail transaction. For the purpose of a retail transaction tax imposed by this Ordinance, all retail transactions are con! at the place of business of the retailer, unless the tangible personal property sold is delivered by th< his agent to an out -of -state destination or to a common carrier for the delivery to an out -of -state do The gross receipts from such sales shall include delivery charges, when such charges are subject to sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no F place of business in the State, or has more than one place of business, the place or places at which sales are consummated for the purpose of the transactions tax imposed by this Ordinance shall be c under rules and regulations to be prescribed and adopted by the State Board of Equalization. 4.69.090. Accountability Measures. The Auditor - Controller of the County of Los Angeles shall create a new account into which the proce the special tax received from the State Board of Equalization shall be deposited. The Auditor - Contro file a report with the County Board of Supervisors, stating the amount of funds collected and expen pursuant to this measure. This report shall be filed upon receipt of proceeds from this Ordinance, ar January 1 thereafter. Each entity authorized to receive an allocation of funds from this Ordinance sF annually adopt, in a public meeting, an accounting of the use of funds, and funds held in reserve. TI shall be filed no later than September 30 of each year with the Auditor - Controller of the County. Prc be distributed to the Sheriff of Los Angeles County, and all cities in Los Angeles County, as prescrib( Section 4.69.050. The use of funds shall be evaluated under rules and regulations adopted by an O� Committee consisting of the President of the Los Angeles County Police Chiefs Association, the Sher Angeles County, a municipal finance director appointed by the League of California Cities, Los Angel a city manager appointed by the League of California Cities, Los Angeles Division, and a contract cit appointed by the California Contract Cities Association. The rules and regulations adopted by the O�, Committee shall provide for penalties for inappropriate uses of funds collected pursuant to this Ordi 4.69.100. Effective and Operative Dates. This Ordinance shall take effect when approved by a two - thirds vote of the qualified voters of the C voting in an election on the issue. The Ordinance will become operative on the first day of the first ( quarter commencing more than 110 days after the Ordinance takes effect, that the combined rate c transaction and use taxes imposed in the County does not exceed the maximum rate provided for b SECTION 4. The votes cast for and against the Proposition shall be separately counted and if the Proposition rec required number of votes, to wit: two - thirds of the votes of the qualified electors voting on the Prop special tax in the amounts and for the purposes stated herein shall be effective and levied by the Cc SECTION S. All qualified voters of the County residing within the cities and the unincorporated area of the Count permitted to vote in the election to be held as nearly as practicable in conformity with the Elections the State of California. Back to top s http: / /www.sheriffleebaca.org /legal.html 3/29/04 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA HEADING: MEETING DATE: April 6, 2004 ports — Mayor Mike Gordon Consideration and possible action regarding the request by Tree Musketeers to declare the California Sycamore the official City of El Segundo tree. COUNCIL ACTION: 1) Consider the request by the Tree Musketeers to declare the California Sycamore the official City of El Segundo tree; 2) Discuss and take action related to this request. BACKGROUND & DISCUSSION: On February 18, 2004, in their report to the Recreation & Parks Commission, the Tree Musketeers advised to that they were working on getting Marcie the Marvelous Tree named as the official City tree. Under Public Communications at the March 16, 2004 City Council meeting, the Tree Musketeers requested that the City Council declare the California Sycamore the official El Segundo tree. ATTACHED SUPPORTING DOCUMENTS: (1) Tree Musketeers' Letter of Request dated March 10, 2004; (2) Form of petition for signatures to declare the California Sycamore to be the official City Tree of El Segundo. FISCAL IMPACT: Operating Budget: N/A Amount Requested: Account Number: Project Phase: Yes No ORIGINATED BY: DATE: April 30, 2004 M Mik erGordoon J. REVIEWED BY: DATE: Mad +n, City Manager V710 Se 235 W • 01/17/1994 01:34 3103224482 i�33 mod�s Educate * Plant March 10, 2004 0 0 Poftner5 Boeing Employee Community Fund x Toyota Mawr Saks K National Tree Trust x Group 22 W Northrop Grumman x Xera. Federal Credit Union x Raytheon City or El Segundo x The Boeing Co Church Family Vann Foundation Bliss Family ae Ch.v n product co, W Mvgot Nellipn x fvnarican Ainlres I American Eagle M Thomas Properties x County of 4os Angels >r Union Bank of CaGfomia x YaiAfn Service Amens x Catherine Wilson r1ntcl Children's Foundation x Contironral Dew lapmentcorp. x Mike & Den Gordon x On Me Go Cmgo x 0 Segundo Firefighters Assn, x Riverside Pink Cenmr Assn x West Coast Arbonstt xr.xx TREE MUSKETEERS Conserve Mary Strenn City Manager 350 Main Street El Segundo, CA 90245 Dear Mary, PAGE 01 A Misrion; To Empower young People to be teodera of and Social Change in Earth's Communities * beautify * Preserve Ptant o treel 160,000 people. prirmarily children, die annually as a result of global warming- 440 deaths per day'. World Health Organization The California Redwood has been our state tree for many years, and when the Oak was recently designated as our national tree, youth leaders at TREE MUSKETEERS came to think that El Segundo should have an official tree. They zeroed in on the California Sycamore for several reasons: • Marcie the Marvelous Tree, a California Sycamore, is one of our nation's Famous and Historic Trees; • The California Sycamore is the primary tree planted along Main Street for the revitalization of El Segundo's downtown; and • California Sycamore is one of the species the City of Los Angeles will allow us to plant in the Imperial Highway median. Youth managers have been collecting signatures of citizens who endorse the idea. Angelica Roque would like to deliver the resolutions to City Council on March 16 with a request that they consider designating the C4fomia Sycamore as El Segundo's official tree at its April 6 meeting when they will be proclaiming Earth Day. In sum, this is simply a symbolic action that further recognizes the important role of trees in our community with no fiscal impact or action steps beyond the resolution. Sincerely, v / /A1 ( XJ 6811 Church Executive Director ti.. 136 Moln St. •' E1 Segundo, CA 902dS s 310.322.0263 + FAX 310.322.4-482 = info @tmemusketeers.org « w .treemusketeees org Printed vAlh Soy Bean Ink on Recycled Paper MAP -10 -2004 14:15 3103224492 3e% P.01 EL SEGUNDO CITY TREE Whereas, the Redwood is California's state tree; and Whereas, in 2001 citizens across the country declared the Oak to be our national tree; and Whereas, Marcie the Marvelous Tree, a California Sycamore, is our city's most famous and historic tree; and Whereas, the California Sycamore is the primary tree planted along Main Street for the revitalization of El Segundo's downtown; now, therefore BE IT RESOLVED that we, citizens who care about El Segundo's trees, ask the Mayor and the City Council to declare the California Sycamore to be the official City Tree of El Segundo. 03 7