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2004 DEC 07 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, DECEMBER 7, 2004 — 5:00 P.M.
Next Resolution # 4407
Next Ordinance # 1379
5:00 P.M. SESSION
CALL TO ORDER
ROLL CALL
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on
behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to
addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250.
01
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:
CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(a)) — 3
matters
1. Bressi v. City of El Segundo, LASC Nos. BC288292 and 288293
2. City of El Segundo v. Stardust West Apartments, LASC No. YC031364
3. Bryan Ezell v. City of El Segundo, WCAB Case No. MON0302193
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): -2- matters
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957) —o matter
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6) —o matter
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) -0 matter
SPECIAL MATTERS - 0 matter
a 02
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, DECEMBER 7, 2004 - 7:00 P.M.
Next Resolution # 4407
Next Ordinance # 1379
7:00 P.M. SESSION
CALL TO ORDER
INVOCATION — Pastor Roger Kinsey of Pacific Baptist Church
PLEDGE OF ALLEGIANCE — El Segundo Boy Scout Troop 773 (Flag Ceremony)
U')
PRESENTATIONS —
(a) Proclamation celebrating December 7, 2004 as Boy Scout Troop 773 50th Anniversary
Day in El Segundo.
(b) Proclamation recognizing the contribution of the Volunteer Center, South Bay- Harbor-
Long Beach and proclaiming December 9, 2004 as Volunteer Center Operation Teddy
Bear Day in El Segundo, a program which promotes literacy.
(c) Proclamation in keeping with an annual holiday tradition in El Segundo, to symbolically
change the name of the 1200 block of Acacia to Candy Cane Lane, in order to create a
snow - covered Holiday Village for the period of December 11, 2004 at 7:00 pm through
December 23, 2004.
(d) Proclamation inviting the community to all the traditional El Segundo holiday events and
proclaiming Sunday, December 12, 2004 as the 41st Annual El Segundo Holiday Parade.
(e) Commendation presented to Joe Pinchuk, El Segundo Police Department's RSVP of the
Year for his invaluable contributions to the Retired Senior Volunteer Program.
(f) Commendations to Committee, Commissions and Board Members, Patricia Ann Hart for
her service on the El Segundo Community Cable Advisory Committee, and to Brian
Schiltz, for his service on the Capital Improvement Program Advisory Committee (CIPAC)
and Planning Commission.
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) Consideration and possible action regarding a brief presentation on the Los
Angeles Air Force Base Economic Impact Assessment report recently released by
the Los Angeles County Economic Development Corporation.
Recommendation — (1) Receive the report and presentation; (2) Alternatively, discuss and
take other action related to this item.
4 04
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
C. UNFINISHED BUSINESS
1. Consideration and possible action regarding rent increases for the Park Vista
Senior Housing Facility, located at 615 E. Holly Avenue and refinancing of the loan
repayment agreement between the City of El Segundo and the El Segundo Senior
Citizen Housing Corporation ( "Corporation "). (Fiscal Impact: approximately
$27,000 annually for the next four years to be funded by a loan from the
Equipment Replacement Fund to the General Fund)
Recommendation — (1) Authorize the City Manager to execute an amendment to the
loan agreement between the City of El Segundo and Corporation to reduce the interest
rate from 8% to 4.75% and extend the remaining term to a total of 3.75 years; (2)
Authorize an increase in the rents for current Park Vista tenants by 5% commencing on
February 1, 2005, 5% commencing on January 1, 2006, 5% commencing on January 1,
2007, 4.25% commencing January 1, 2008 and annually thereafter based upon an index
tied to Social Security increases, with an automatic floor of 2.75% allowing for the offset
of Medicare increases of .25 %; (3) Authorize using City Equipment replacement funds
to offset the reduction in debt service payments from Park Vista Senior Housing
Corporation for purposes of avoiding altering the projected General Fund balance and
stabilizing the rent increases over the next four years; (4) Authorize repayment of
Equipment Replacement fund once the first loan between the City and the Senior
Housing Corporation is paid off. (5) Authorize the property management company to
eliminate the earthquake insurance policy for the Park Vista Senior Housing Facility; (6)
Authorize charging new Park Vista tenants on or after February 1, 2005, 45% of the fair
market rental value, based on a market analysis conducted by the management
company. The management company will conduct a survey and analysis annually to set
new tenants rates. Thereafter those tenants will have their rents adjusted 5% in 2006,
2007 and 4.25% in 2008. Starting in 2009, rents will be adjusted pursuant to item no. 1
above, according to the Social Security index, less a .25% offset for future Medicare cost
increases. (7) Alternatively, discuss and take other action related to this item.
5 05
2. Consideration and possible action regarding an agreement between the University
of California -Irvine (UCI) Urban and Regional Planning Program and the City to
conduct a study of the Smoky Hollow Specific Plan area. (Fiscal Impact: None)
Recommendation — (1) Authorize the City Manager to execute an agreement as to form
approved by the City Attorney; (2) Alternatively, discuss and take other action related to
this item.
D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS
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.
3. Warrant Numbers 2544331 to 2544716 on Register No. 4 in the total amount of
$1,481,234.76 and Wire Transfers from 11/05/2004 through 11/24/2004 in the total
amount of $1,135,406.87.
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.
4. City Council Special Meeting Minutes of November 11, 2004, Special Meeting
Minutes of November 16, 2004 and Regular Meeting Minutes of November 16,
Recommendation — Approval.
5. Consideration and possible action regarding adopting a Resolution allowing a pre-
tax employee payroll deduction plan for service credit purchases, such as
additional retirement service credit, military service, and Peace Corps /AmeriCorps
under Revenue Code (IRC) Section 414(h)(2).
Recommendation — (1) Adopt the attached Resolution; (2) Alternatively, discuss and
take other action related to this item.
6 0 6
6. Consideration and possible action to waive the formal bidding process on the
purchase of radio equipment for the El Segundo Police Department. The total cost
is approximately $35,086.00 using monies awarded through the State Homeland
Security Grant Program (SHSGP) under the SHSGP FY 2004 Federal Budget Year.
(Fiscal Impact: $35,086)
Recommendation — (1) Pursuant to El Segundo Municipal Code Sec. 1 -7 -10, waive the
bidding process based upon sole source vendor for the purchase of up to 10
digital /analog mobile radios from the SHSGP FY 2004 Grant Program; (2) Authorize the
spending of up to $35,086; (3) Alternatively, discuss and take other action related to this
item.
7. Consideration and possible action to approve the easement agreement between
the Los Angeles County Metropolitan Transportation Authority (MTA) and the City
of El Segundo for construction of the Douglas Street Project within MTA property
— Approved Capital Improvement Project. (No Fiscal Impact).
Recommendation — (1) Approve easement 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.
8. Consideration and possible action to approve a Covenant Restricting Use of
Property for equipment purposes with respect to the expansion of floor area at a
building at 2260 East El Segundo Boulevard as previously permitted by the
Planning Commission.
Recommendation — (1) Authorize City Manager to execute a Covenant Restricting Use
of Property; (2) Alternatively, discuss and take other action related to this item.
9. Consideration and possible action regarding the waiver of fees for City services
associated with the Candy Cane Lane Holiday Program located on 1200 E. Acacia
Street. (Fiscal Impact: $500)
Recommendation — (1) Waive fees for City services associated with the Candy Cane
Lane Holiday program; (3) Alternatively, discuss and take other action related to this
item.
10. Consideration and possible action regarding award of a three year contract to
TruGreen LandCare for the City's landscape maintenance services effective
January 1, 2005. (Fiscal Impact: $158,340).
Recommendation — (1) Award contract to TruGreen LandCare in the amount of
$158,340; (2) Authorize the City Manager to execute an agreement for services subject
to approval by the City Attorney; (3) Alternatively, discuss and take other action related
to this item. U,7
7
11. Consideration and possible action regarding award of three year contract to
Consolidated Disposal Service for the City's green waste hauling and recycling
services. (Fiscal Impact: $15,500)
Recommendation — (1) Award contract to Consolidated Disposal Service in the amount
of $15,500; (2) Authorize the City Manager to execute the contract on behalf of the City;
(3) Alternatively discuss and take other action related to this item.
12. Consideration and possible action regarding termination of Advanced Fuel
Filtration Systems, Inc.'s contract to perform emergency repairs for the City's
underground fuel storage system at 150 Illinois Street and award a takeover
contract to Advanced Environmental Services, Inc. (Fiscal impact: $9,645.00)
Recommendation — (1) Terminate Advanced Fuel Filtration Systems, Inc.'s contract; (2)
Award a takeover contract to Advanced Environmental Services, Inc.; (3) Authorize the
City Manager to sign the takeover contract on the City's behalf; (4) Alternatively, discuss
and take other action related to this item.
CALL ITEMS FROM CONSENT AGENDA
F. NEW BUSINESS
13. Consideration and possible action regarding adding additional signage on
Franklin Avenue indicating that the cross traffic on Richmond Street does not stop
at the intersection.
Recommendation — (1) Receive and file; (2) Alternatively, discuss and take other action
related to this item.
G. REPORTS —CITY MANAGER— NONE
H. REPORTS — CITY ATTORNEY — NONE
REPORTS — CITY CLERK
14. Consideration and possible action requesting Council consensus to cancel the
January 4, 2005 City Council Meeting.
Recommendation — (1) Approve cancellation of January 4, 2005 meeting; (2)
Alternatively, discuss and take action related to this item.
R 08
J. REPORTS —CITY TREASURER— NONE
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Boulgarides —
15. Consideration and possible action to request staff to study the feasibility of
changing the current street sweeping program to accommodate an "alternating
side" street sweeping schedule on all streets citywide where street sweeping
parking restrictions are posted.
Recommendation — (1) Direct staff to evaluate the feasibility of changing the current
street sweeping schedule to reflect an "alternating side" sweeping schedule; (2)
Alternatively, discuss and take action related to this item.
Council Member Busch —
16. Consideration and possible action regarding announcement of an agreement
between the Tree Musketeers and the Los Angeles Street Tree Division for the
landscaping maintenance and improvements on the City's borders.
Recommendation — (1) Receive and file the Council's report; (2) Alternatively, discuss
and take other action related to this item.
Council Member Jacobson —
Mayor Pro Tern Gaines —
17. Consideration and possible action regarding a new appointment to the Golf
Course Subcommittee. (Fiscal Impact: None)
Recommendation — (1) Authorize the appointment of John Van Hook to the Golf
Subcommittee replacing Bill Bue to represent the El Segundo's Men's Golf Club; (2)
Alternatively, discuss and take other action related to this item.
9 U
Mayor McDowell —
18. Consideration and possible action regarding the Approval of Amended Joint
Exercise of Powers Agreement for Insurance and Risk Management Purposes with
the Independent Cities Risk Management Authority ( ICRMA). (Fiscal Impact:
Recommendation — (1) Staff is recommending the City Council adopt Resolution
Amending the Joint Exercise of Powers Agreement for Insurance and Risk Management
with the ICRMA; (2) Designate its representatives to the ICRMA Governing Board and
the separate Risk Management Programs in which this City participates; (3) Direct that a
certified copy of the Resolution be forwarded to ICRMA's General Manager; (4)
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.
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: /fl�`J,y�
TIME: VDU i" // `.
NAME: P2�
10 1 (%
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Public Communications
AGENDA DESCRIPTION:
Consideration and possible action regarding a brief presentation on the Los Angeles Air
Force Base Economic Impact Assessment report recently released by the Los Angeles
County Economic Development Corporation.
RECOMMENDED COUNCIL ACTION:
Recommendation — (1) Receive the report and presentation; (2) Alternatively, discuss and
take other action related to this item.
BACKGROUND & DISCUSSION:
The Los Angeles Economic Development Corporation just released a report entitled "Los
Angeles Air Force Base Economic Impact Assessment ". The document analyzed the
complete economic impact of the Base throughout the Los Angeles County the State of
California. This information was developed to assist the Los Angeles Air Force Base
Regional Alliance's effort to prevent the Base from being listed for possible closure through
the upcoming Base Realignment and Closure process (BRAC).
ATTACHED SUPPORTING DOCUMENTS:
Los Angeles Air Force Base Economic Impact Assessment Report.
FISCAL IMPACT: None
Operating Budget:
N/A
Amount Requested:
N/A
Account Number:
NIA
Project Phase:
N/A
Appropriation Required:
None
ORIGINATED BY: DATE:
M. Hansen, Director of Economic
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Kr, vI tU tsr: DATE:
/1/4
Mary S r n, City Manager J'
11
Los Angeles Air Force Base
Economic Impact Assessment
Gregory Freeman
Vice President, Policy Consulting
November 2004
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Economic Vitality,
Trade & Jobs
12
Los Angeles County Economic Development Corporation
As the premier business leadership organization, the LAEDC's mission is to attract, retain and grow businesses and jobs in the
regions of LA County, as well as to identify trends and affect positive change for the local economy. Since 1995, the LAEDC
Business Development team helped in the creation of more than 68,000 jobs from 368 projects. The annual economic impact of
those jobs translates into $2.3 billion in salaries and more than $ 117.3 million in tax revenue generated to support local govern-
ments and schools.
The LAEDC Economic Information and Research Department is a key source for current and forecasted data on Southern
California's economy. Regular publications include Business Resource Guide of Southern California, Economic forecast &
Industry Outlook, International Trade Trends & Impacts, L.A. Stars, Roadmaps to Industry Clusters, and regional economic
reports. All reports and industry profiles are provided free to the general public via our website or printed copies can be pur-
chased individually.
The LAEDC Economic Consulting Department offers custom research with expertise in transportation, the environment, infra-
structure, the financial services industry, international economics including country analysis, regional economic trends and
regional industry analysis.
© Los Angeles County Economic Development Corporation
www.laedc.org 1. 888- 4LAEDC -1 213. 622.4300 1. 800 - New -Help (within LA County)
To obtain the free weekly a -EDGE economic report via e-mail, send your request via e-mail to research@laedc.org
I
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444 S. Flower St.
341^ Floor
Los Angeles, CA
90071
t: 213.622.4300
f: 213.622.7100
www.laedc.org
Los Angeles Air Force Base
Economic Impact Assessment
The Los Angeles Air Force Base (LAAFB) houses and supports the
headquarters of the Air Force's Space and Missile Systems Center, which is
responsible for the research, development and acquisition of military space
systems. The base is a major economic engine in Los Angeles County and the
state of California, but unlike much larger and better known installations such
as Camp Pendleton and Edwards Air Force Base, LAAFB has a relatively low
profile and a comparatively small physical footprint. Nonetheless, LAAFB is
quietly responsible for the direct and indirect employment of nearly 50,000
people in Los Angeles County, as well as an additional 62,000 people in the
rest of California. Here we briefly summarize the job, wage, and tax
implications of the operations of LAAFB. We begin with the impact on Los
Angeles County.
Los Angeles County
LAAFB has a demonstrable positive economic impact on Los Angeles County.
The base directly employs about 5,000 people, including military and
government and contract civilian personnel. Spending by the base (for
supplies, construction materials and so forth) and by its personnel (on
consumer items ranging from housing to entertainment) creates additional
indirect employment equivalent to roughly 5,000 full -time equivalent
positions. These 10,000+ direct and indirect jobs are reported in Table I as
the "operations" component of the LAAFB. Workers in these jobs together
earn more than half a billion each year. All told, this operations component of
LAAFB activity results in economic output (i.e. revenues for businesses in
Los Angeles County) of just over $1 billion annually.
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LAAFB Economic Impact Assessment
2
Table 1
Los Angeles Air Force Base
Ongoing Economic Impact in Los Angeles County
(Full -time equivalent jobs and billions of dollars)
Jobs
Wages*
Output*
LAAFB
40,800
$2.080
$6.810
Operations
10,300
$0.530
$1.040
Aerospace Industry Contracts
30,500
$1.550
$5.770
The Aerospace Corporation
8,500
$0.370
$1.200
Total
49,300
$2.450
$8.010
Direct and indirect employment, wages & output (business revenue) impacts.
Sources: LAAFB, Aerospace Corporation, LAEDC
LAAFB is primarily responsible for the procurement of military satellites and launch
vehicles, overseeing and funding these projects from concept to operation. At any
given time, LAAFB manages a total of approximately $60 billion in contracts of
varying duration, and each year LAAFB adds about $8.5 billion in new contracts
Looking just at the new contracts added each year allows us to take a "snapshot" of the
work being conducted, and approximates the annual employment impact. The direct
and indirect employment sustained in Los Angeles County by LAAFB aerospace
industry contracts is reported in Table 1.
The 30,500 workers include people employed directly by the contractors — primarily
research scientists and employees at aerospace firms — and people in jobs sustained by
the purchases of the contractors and their employees. The jobs created in the aerospace
industry are highly desirable, both for the workers who hold them and the regional
economy as a whole. The industry's workers are particularly well -paid, reflecting a
well- educated workforce. The direct and indirect workers together earn more than $1.5
billion annually. All told, these aerospace industry contracts contribute $5.8 billion
annually to economic output (i.e. revenues for businesses) in Los Angeles County.
Note that LAAFB has contracts with companies throughout California and across the
United States. Tracking the geographic location of spending by prime contractors is
complicated by the geographically dispersed operations of these companies. An
aerospace firm may have its headquarters in one state, research facilities in another and
manufacturing facilities in third. Moreover, the prime contractors make extensive use
of subcontractors who are not necessarily located in the same state. The employment
impact reported in Table 1 is based on the LAEDC estimate of just the Los Angeles
County portion of the new contracts added each year.
LAEDC Consulting Practice
November 2004
1 :)
LAAFB Economic Impact Assessment 3
The final component of the LAAFB impact on Los Angeles County comes from the
operations of The Aerospace Corporation. This federally- funded El Segundo -based
firm works closely with the LAAFB: approximately 60 percent of its revenues are
earned through LAAFB contracts. [Note: To avoid double counting, The Aerospace
Corporation's share of the contracts awarded by LAAFB was excluded from the
contracts section described earlier.] The Aerospace Corporation has about 3,500
employees. Spending by the company and its employees sustains a further 4,000
indirect jobs. Together the direct and indirect workers earn $371 million annually. The
Aerospace Corporation contributes $1.2 billion annually to economic output (i.e.
revenues for businesses including itself) in Los Angeles County.
In sum, LAAFB operations and contracts plus The Aerospace Corporation sustain
annual employment in Los Angeles County equivalent to 49,300 full -time jobs. Since
many of the indirect jobs are in the service sector — where part-time employment is
common — the actual number of people holding jobs sustained in whole or in part by the
spending of LAAFB is undoubtedly substantially higher. Collectively, these workers
earn $2.45 billion annually. The total annual economic output associated with LAAFB
(i.e. revenues for businesses in Los Angeles County) is about $8 billion.
California
LAAFB has a large positive impact on Los Angeles County, but its impact on the state
of California is even greater. Two factors account for the substantially larger statewide
impact. First, Los Angeles County accounts for about half of the LAAFB aerospace
contracts in California. Spending in Santa Clara, San Diego, Orange and other
California counties sustains additional direct (aerospace) and indirect jobs. Second, the
economic impact of LAAFB spending in Los Angeles County (or any county, for that
matter) is not confined solely to the county where the spending takes place. If, for
example, LAAFB hires a Los Angeles -based construction firm to build a research
facility, the construction company might order cement from a firm based in San
Bernardino or Riverside. The Los Angeles County impact reported in Table 1 above
only captures employment created at the construction firm in this example, not at the
cement company. Thus, the statewide economic impact of spending related to LAAFB
is substantially higher than in Los Angeles County alone because the total spending
involved is higher and the economic activity that spills over county borders is captured.
In California, LAAFB sustains the equivalent of 102,200 full -time jobs with wages in
excess of $5 billion annually. The statewide economic impact (which naturally includes
the Los Angeles County impact reported earlier) is presented in Table 2.
LAEDC Consulting Practice November 2004
16
LAAFB Economic Impact Assessment
4
Table 2
Los Angeles Air Force Base
Economic Impact in California
(Full -time equivalent jobs and billions of dollars)
Jobs
Wages*
Output*
LAAFB
102,200
$5.060
$14.940
Operations
12,200
$0.620
$1.150
Aerospace Industry Contracts
89,900
$5.460
$13.780
The Aerospace Corporation
9,500
$0.400
$1.320
Total"
111,700
$5.460
$16.260
Direct and indirect employment, wages & output (business revenue) impacts.
..May not sum due to rounding.
Sources: LAAFB, Aerospace Corporation, LAEDC
LAAFB and The Aerospace Corporation are both located in Los Angeles County. For
both, the number of direct workers is identical in Los Angeles County- specific and the
statewide economic impact analysis. Because the statewide analysis captures indirect
employment impacts outside of Los Angeles County, however, the total employment
related to LAAFB operations is 1,900 workers higher than in L.A. County alone,
bringing the statewide total to the equivalent of 12,200 full -time jobs. Similarly, The
Aerospace Corporation generates employment equivalent to a fitrther 1,000 jobs outside
of Los Angeles County, bringing the statewide total employment sustained by its
operations to 9,500.
The largest single component of the employment impact of LAAFB stems from the
contracts it awards to the aerospace industry. Looking at the employment impact of the
roughly $8.5 billion in new contracts awarded each year, the California share of this
spending sustains almost 90,000 jobs statewide, almost 3 times the employment
generated in Los Angeles County alone. The non-California share of the contracts, such
as for work conducted in Colorado by the Lockheed Martin Corporation, is not included
in this total. [Note again that the share of the contracts awarded to The Aerospace
Corporation has already been counted separately and is excluded here to avoid double
counting.]
LAAFB operations and The Aerospace Corporation each contribute more than $1
billion annually to economic output (business revenues) in California. In addition,
aerospace industry contracts managed by the LAAFB contribute almost $14 billion to
economic output statewide. Thus, the total LAAFB contribution to economic output
(business revenues) in California exceeds $16 billion, including the $1.3 billion
contribution from The Aerospace Corporation.
LAEDC Consulting Practice November 2004
I
LAAFB Economic Impact Assessment
Tax Implications
LAAFB sustains employment equivalent to nearly 50,000 full -time jobs in Los Angeles
County and a further 62,000 jobs in the rest of California. This economic activity
generates tax revenue for state, county, and city governments worth more than $340
million annually. Estimates of the annual taxes generated by economic activity related
to LAAFB are presented in Table 3. The first column reports the taxes generated for
each level of government by economic activity in Los Angeles County; the second
column reports the taxes generated statewide (and therefore includes the amount in the
first column). Thus, the state eams at least $140 million in taxes each year from
economic activity related to LAAFB in Los Angeles County and a further $172 million
in taxes from LAAFB- related economic activity in the rest of the state. The total state
revenue is $312 million. The state taxes include income taxes and the state share of
sales taxes paid by workers in direct and indirect jobs sustained by economic activity
related to LAAFB.
Table 3
Los Angeles Air Force Base
Annual Tax Revenue Implications
(millions)
Location of Economic Activity
LA County
All of
California
State Tax Revenue
$140.3
$312.1
County Tax Revenue
$7.9
$17.1
City Tax Revenue
$5.5
$10.9
Source: LAEDC
Los Angeles County collects at least $7.9 million in tax revenue annually from
economic activity sustained by LAAFB. Other counties in California share a further $9
million in taxes, for a total of $17 million received by all California counties. The
major component of the county tax revenue comes from the county share of sales taxes,
which includes both the county portion of the sales tax and the county transportation
component. The L.A. County taxes also include the county share of property taxes paid
by the Aerospace Corporation.
Cities in Los Angeles County collect at least $5.5 million in tax revenue annually from
activity related to the LAAFB, with municipalities elsewhere in the state collecting a
further $5.4 million. As with the county revenue, the bulk of the city revenue is derived
from the local share of sales taxes on economic activity sustained by LAAFB. The
LAEDC Consulting Practice November 2004
1
LAAFB Economic Impact Assessment 6
totals also include the business and property taxes paid by The Aerospace Corporation
to the City of El Segundo.
Note that Table 3 actually underestimates the tax revenue generated each year by
economic activity related to LAAFB. We have included the local business and property
taxes paid by The Aerospace Corporation, for example. A lack of source data, however,
prevents us from including similar taxes paid by other firms in the aerospace industry
working on contracts for LAAFB. Also missing are state taxes on corporate profits, and
local utility taxes. These omissions suggest that the actual taxes generated each year by
economic activity related to LAAFB are substantially higher than the estimates
presented here.
Outlook
Defense industry spending in Southern California fell sharply during the early 1990s,
but has picked up over the past three years. Aerospace spending, in particular, is
expected to increase in the coming years as the Department of Defense and other federal
government entities allocate more funding to satellites and other space systems. This
spending is good news for firms in Los Angeles County and the rest of California. Each
additional billion dollars in new LAAFB - administered aerospace contracts (over and
above the $8.5 billion already received in new contracts annually), will add about 3,600
direct and indirect jobs in Los Angeles County. A further 7,000 direct and indirect jobs
will be added in the rest of the state, for a statewide total of 10,600 jobs. (Note that
these job forecasts assume the current geographic distribution of LAAFB contracts
remains the same in the future.)
Methodology and Data Sources
LAAFB is an unusual military facility. To fully capture its economic impact, we used a
"bill -of- goods" approach, calculating separately the economic impact of each major
component of base - related spending. The LAEDC estimated jobs and taxes using an in-
house model based on the Regional Input- Output Modeling System (RIMS II), which
was developed by the U.S. Department of Commerce, Bureau of Economic Analysis.
We used data provided by LAAFB, The Aerospace Corporation, the California
Employment Development Department (Occupational Employment (2000) and Wage
Data (2001) for the Los Angeles -Long Beach MSA), and the U.S. Census Bureau,
notably County Business Patterns and the Economic Census.
LAEDC Consulting Practice November 2004
1
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Unfinished Business
AGENDA DESCRIPTION:
Consideration and possible action regarding rent increases for the Park Vista Senior Housing
Facility, located at 615 E. Holly Ave., and refinancing of the loan repayment agreement
between the City of El Segundo and the El Segundo Senior Citizen Housing Corporation
( "Corporation ") (Fiscal Impact approximately $27,000 annually for the next four years to be
funded by a loan from the Equipment Replacement Fund to the General Fund)
RECOMMENDED COUNCIL ACTION:
1. Authorize City Manager to execute an amendment to the loan agreement between
the City of El Segundo and Corporation to reduce the interest rate from 8% to 4.75% and
extend the remaining term to a total of 3.75 years.
2. Authorize an increase in the rents for current Park Vista tenants by 5% commencing
on February 1, 2005, 5% commencing on January 1, 2006, 5% commencing on January 1,
2007, 4.25% commencing January 1, 2008, and annually thereafter based upon an index
tied to Social Security increases, with an automatic floor of 2.75 %, allowing for an offset of
Medicare increases of .25%
- Continued on next page -
BACKGROUND & DISCUSSION:
The City constructed and owns the Senior Citizens Housing Facility ( "Park Vista ") located at
615 E. Holly Ave. Funding for construction, operations, and Park Vista property purchases
received voter approval on November 8, 1983, and was paid for partially out of a loan from the
"Voter Trust Account" originally established December 7, 1982( "Trust Monies").
- Continued on next page -
ATTACHED SUPPORTING DOCUMENTS:
Exhibit A: Objectives for Park Vista Senior Housing Corporation's Long Term Financial Plan
Exhibit B. Senior Housing Corporation's Contract Amendment
rIJCAL IMPACT: Approximately $27,000 annually for the next 4 years to be funded by loan from
Equipment Replacement Fund to the General Fund
Operating Budget:
Account Number:
Project Phase:
Appropriation Required: _Yes x_ No
ORIGINATED: �� DATE:
/ti- 30 -1
Stacia Mancini, Recreation and Parks Director
REVIEWED BY:
_ , DATE:
Stren
,x/76/ y 1
�U
COUNCIL ACTION (continued)
3. Authorize using City Equipment replacement funds to offset the reduction in debt
service payments from Park Vista Senior Housing Corporation for purposes of avoiding
altering the projected General Fund balance and stabilizing the rent increases over the
next four years.
4. Authorize repayment of Equipment Replacement Fund once the first loan between
the City and the Senior Housing Corporation is paid off.
5. Authorize the property management company to eliminate the earthquake insurance
policy for the Park Vista Senior Housing Facility.
6. Authorize charging new Park Vista tenants on or after February 1, 2005, 45% of the
fair market rental value, based on a market analysis conducted by the management
company. The management company will conduct a survey and analysis annually to set
new tenants rates. Thereafter those tenants will have their rents adjusted 5% in 2006,
2007, and 4.25% in 2008. Starting in 2009 rents will be adjusted pursuant to item no. 1
above, according to the Social Security index, less a .25% offset for future, Medicare cost
increases.
7. Alternatively, discuss and take other action related to this item.
Background and Discussion (continued)
On March 6, 1984 the City Council approved purchasing real property for Park Vista and
authorized payment of approximately $500,000. The Council approved construction of a 97-
unit project on May 1, 1984 with projected costs of approximately $4 million. This amount was
funded through the Trust Monies loan and an additional loan from the City's General
Emergency Contingency Fund ( "Fund Loan ") in the amount of. $1,750,000, which is repayable
over twenty years at an 8% interest rate.
In July 2004, the Corporation Board requested a meeting with City staff to look at the financial
situation and monthly deficit that the Corporation has been operating under. Park Vista is now
a 15- year -old facility with continuing deferred maintenance issues. The rents collected do not
generate adequate income to cover operating expenses. Consequently, due to the negative
cash flow, the reserve accounts are being depleted each month and used for operating
expenses.
The Senior Housing Corporation recommended some options to the City Council on October
5, 2004. At that time the Council appointed a subcommittee comprised of two City Council
members, Eric K. Busch, Carl Jacobson, and two Senior Housing Corporation Board
members, Carol Wingate and Paula Rotolo. The task of the Subcommittee, along with staff,
was to meet and review all of the available options and to make a recommendation back to
City Council by the end of November 2004.
21
The subcommittee met to review several different options; which included but were not limited
to the following:
1. Reduce the interest on the loan from 8% to 6 %, reducing the City General Fund revenue
stream by $2,100 per month for 47 months.
2. Increase rents 12% effective January 2005, and refinance the existing principal loan
balance of $521,238 at an interest rate of 5.75% with a commercial lender, rolling all fees into
the principal loan balance. The City would have to sign on the loan, and put up some assets to
guarantee the loan.
3. Increase rents by 17% effective January 2005.
Most of the options that were reviewed consisted of a combination of reducing the interest on
the loan and increasing the rents, with the dual objectives of eliminating the monthly operating
deficit and enabling the Corporation to do some of the needed maintenance that had been
deferred for so long.
On Tuesday November 9, 2004 the subcommittee met and agreed upon a recommendation
for refinancing the loan and increasing the Park Vista rental rates.
Refinance existing loan between the City of El Segundo and Corporation from 8% to 4.75%
with monthly payments of $12,644 beginning February 1, 2005, over 3.75 years or 45 months.
The impact to the General fund is approximately $2,200 per month, and this shortfall to the
General Fund will be funded by a loan from the Equipment Replacement Fund. The
Equipment Replacement Fund loan, will, be paid off by the Corporation through repayment of
the loan of the Trust Monies, beginning immediately after the first loan is paid off.
The rental rates based on rent increases of 5% from 2005 to 2007 and 4.25% increase in
2008 will be $23.12, $24.05, $25.25, and $22.53 respectively for a large one - bedroom unit.
For a medium one bedroom or handicap unit the rent increases will be $15.66, $16.28, $17.10,
and $15.26 respectively. These rents are based on the assumptions that, expenses will
increase 3% over the 2004 budget and 3% annually thereafter.
After January 1, 2009 these rents would be tied to the Social Security increases with a floor of
3% annually minus a .25 offset for anticipated future Medicare cost, or a minimum of 2.75%
per year.
The offset of .25% has been determined by taking the average five -year histories of 1999-
2004 of the actual Medicare dollar increases. Staff recommends reviewing the average dollar
change in Medicare as a percentage of total Social Security every five years, beginning in
January 2010.
The subcommittee is also recommending that the property management company discontinue
the earthquake insurance immediately; this is a savings of approximately $1,400 per month.
The combination of extending the loan and reducing the interest rate, along with eliminating
the earthquake insurance, would allow the Corporation to put $500 a month toward repairs in
the first year, and to increase revenues so that $725 a month could be contributed to the
reserve account in year two, in year three $775 would go to the reserves, by year four an
additional $500 a month. At that rate the Corporation would be able to achieve a target
2 2
reserve level of $250,000 by approximately year five.
On November 15, 2004 notices were placed under every tenant's door at Park Vista
announcing that the Senior Housing Corporation Board was meeting at 7pm that night to
discuss the Park Vista refinancing options and possible rent increases. The Senior Housing
Corporation Board approved the subcommittee's recommendations. That night approximately
35 to 40 residents of Park Vista attended the Senior Corporation Board meeting and not one
resident voiced opposition to the rent increases that were approved. Those recommendations
are attached to this report as Exhibit A
Terms
EXHIBIT A
Park Vista Long Term Financial Plan -Final Version
Refinance existing loan between the City of El Segundo and Park Vista from 8%
to 4.75% with monthly payments of $12,644 beginning 2/1/05 over 3.75 years or
45 months.
2. Impact of General Fund just over $2,200 per month to be funded annually by a
loan from the Equipment Replacement Fund.
3. Equipment Replacement Fund to be paid off by Park Vista debt service payment
beginning immediately after the first loan is paid off.
4. Rent increases of 5% annually for the years 2005, 2006, and 2007 with the first
rent increase effective February 1, 2005, next and all subsequent increases
effective January I" of each year.
5. Rent increase of 4.25% beginning January 1, 2008.
6. Rent increases pegged to Social Security index (offset by Medicare increase of
.25 1/o) beginning January 1, 2009. (The rent increase floor is 3% less .25% or
2.75% floor)
7. Park Vista monthly expenses to be pegged to 2004 budget less earthquake
premium, which is $1,421 a month, and less debt service reduction, plus $500
toward repairs beginning February 1, 2005.
8. Park Vista will make monthly deposits to the reserves in the amount of $725
beginning January 1, 2006.
9. Park Vista will make monthly deposits to the reserves in the amount $775
beginning January 1, 2007.
10. Park Vista will make monthly deposits to the reserves in the amount $500
beginning January 1, 2008.
11. Target reserve level is $250,000, which is anticipated to be met by
December 31, 2009.
12. Annual rent increases are designed to cover all operating expenses plus $2,500
toward repairs and reserves by December 31, 2008.
13. Rent increases are based on the assumptions that expenses will increase 3% over
the 2004 budget and 3% annually thereafter.
14. After the City Council takes action on this item, new tenants will have their rent
begin at 55% below the fair market rental value. This value will be determined by
a market analysis conducted by the property management company.
24
EXHIBIT B
AMENDMENT NO.2 TO REPAYMENT AGREEMENT
THIS AMENDMENT NO. 2 TO REPAYMENT AGREEMENT
( "AMENDMENT ") is entered into this 7`n day of December 2004 by and between the
City of El Segundo ( "CITY "), a California municipal corporation, and the El Segundo
Senior Citizen Housing Corporation, a California Nonprofit Public Benefit Corporation
( "CORPORATION ").
WHEREAS the CITY and CORPORATION entered into a Repayment
Agreement on or about January 5, 1988 ( "AGREEMENT ");
WHEREAS the CITY and CORPORATION are desirous of amending paragraph
I of the AGREEMENT pursuant to this AMENDMENT;
NOW THEREFORE the CITY and CORPORATION do hereby agree to amend
paragraph I of the AGREEMENT as follows:
The remaining balance of $521,234 on the original $1,780,000 loan shall
be paid back to CITY by the CORPORATION on the following terms: As
of January 1, 2005 the interest rate on the remaining balance shall be
reduced to 4.75 %; and based thereon payments due on and after January 1,
2005, shall be made by the Corporation to the City in equal monthly
installments of $12,644.49 and for a total of 45 payments. Payments shall
be due no later than the fifth day of each month. Each payment shall first
be credited to first to accrued interest and the balance shall be applied to
principal.
Other than the above amendment to paragraph 1, all other terms and conditions of
the AGREEMENT shall remain unchanged and in full force and effect.
CITY OF EL SEGUNDO
Kelly McDowell, Mayor
ATTEST:
City Clerk
EL SEGUNDO SENIOR CITIZEN
HOUSING CORPORATION
President
25
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Unfinished Business
AGENDA DESCRIPTION:
Consideration and possible action regarding an agreement between the University of
California -Irvine (UCI) Urban and Regional Planning Program and the City to conduct a study
of the Smoky Hollow Specific Plan area. (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
Authorize the City Manager to execute an agreement as to form approved by the City
Attorney, and /or;
Alternatively, discuss and take other actions related to this item.
BACKGROUND & DISCUSSION:
On September 21, 2004, Mayor McDowell presented a preliminary proposal to the City Council
that UCI's graduate program in Urban and Regional Planning conduct a study of the Smoky
Hollow area. The findings and recommendations would be presented to the City Council and
be utilized to update the Smoky Hollow Specific Plan following environmental analysis as
required by the California Environmental Quality Act (CEQA). The study prepared by UCI
would be completed at no cost to the City.
Since 1994, the UCI Department of Policy, Planning and Design has conducted projects of this
sort to enable graduate students in the Masters Degree program the opportunity to analyze
on next
ATTACHED SUPPORTING DOCUMENTS:
Proposed Work Program
FISCAL IMPACT: None
Operating Budget: NIA
Amount Requested: NIA
Account Number: NIA
Project Phase: NIA
Appropriation Required: _ Yes X No
ORIGINATED BY: DATE:
�.a..e J
Seimone Jurjis, Di ct of Planning and Building Safety
REVIEWED BY: DATE:
Mary Stre46, City Manager 2
26
STAFF REPORT: December 7, 2004
BACKGROUND & DISCUSSION: (cont.)
Page 2
existing cities, downtowns and neighborhoods in Southern California. Over the years UCI
students have studied communities ranging from Old Town Tustin to new cities such as Aliso
Viejo.
The Smoky Hollow Specific Plan study will begin on January 10, 2005 and be completed by
June 30, 2005 under the supervision of Michael Ruane, the instructor for the Urban Studio
course at UCI's Department of Policy, Planning and Design. Typically, the student team
includes 12 individuals broken into three teams working on various aspects of the study. The
research portion of the project will include the review of City documents and maps.
Additionally, students will conduct fieldwork including photo- documentation to assess existing
conditions in the Specific Plan area. The City's Planning Division will manage the study
including review of written materials and monthly progress reports submitted by the student
team. Planning Division staff will supply copies of City documents, including the City's General
Plan, the existing Smoky Hollow Specific Plan, and GIS maps. Staff will invite members of the
public to a scoping meeting for input. A status report will be provided at a City Council meeting
regarding the progress of the study around the midpoint of the project which is anticipated in
early April. The findings and recommendations of the study will be presented to the Planning
Commission and Economic Development Advisory Council (EDAC) for input prior to returning
to the City Council.
The Smoky Hollow Specific Plan was adopted in 1985. Smoky Hollow is generally bounded by
El Segundo Boulevard, on the south, Standard Street on the west, Holly and Grand Avenues
on the north and Sepulveda Boulevard on the east. The area includes about 123 acres and is
about 95% developed mostly as commercial and light industrial. However, there are a number
of single and multi - family dwellings with the majority within two blocks of Grand Avenue and
west of Kansas Street. The majority of the buildings are one and two -story and generally more
than 20 years old. The area has a number of factors constraining growth and redevelopment
of property including an existing floor area ratio (FAR) of .6:1, small lots under numerous
ownerships, a shortage of parking, and aging water and sewer lines.
PAPlanning & Building Safety \KIM \Smoky Hollow.doc
r1
PROPOSED WORK PROGRAM
Smoky Hollow Specific Plan
November, 2004
A. SUMMARY
A graduate student team from the Department of Policy, Planning and
Design at the University of California, Irvine will develop an updated
Specific Plan for the Smoky Hollow area of the City of El Segundo, and
submit a final report and recommendations by June 30, 2005. This project
will be carried out by the Urban Planning Studio, which has developed
professional reports and studies for several cities and local community
organizations.
B. RESPONSIBILITIES
1. The Department of Policy, Planning, Design, and the Course Instructor
for the Urban Planning Studio course are responsible for the supervision
and management of the students assigned to this project. The overall
project will be supervised by the Instructor for the Urban Studio Course,
who has over twenty years of professional experience and is a member of
the American Institute of Certified Planners (AICP).
2. The City of El Segundo is not required to provide any direct funding for
the Specific Plan Update. The city will provide copies of, or access to
base maps or GIS maps to ensure that the Specific Plan products are
compatible with city documents. The city will designate a contact
person(s) for the graduate student teams during the course of their
project.
If the city requests that one or more presentations be provided in the
community or at a City Council meeting, the City will handle the
necessary arrangements for a meeting facility, if required.
28
C. TIMELINE AND DELIVERABLES
1. The project will begin on January 10, 2005 and be completed by June 30,
2005.
2. The Department will provide monthly written progress reports to city's
designated contact person
3.The Department will provide 10 copies of the final report and a
reproducible version on a CD at no cost to the city.
4. If a city and/or community presentation is desired to the present graduate
team recommendations, it should be scheduled during late May, 2005 or
early June, 2005.
D. DEPARTMENTAL/ UC IRVINE SUPERVISOR
Michael Ruane, Department of Policy, Planning and Design
UC Irvine
949 - 824 -3480
29
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, NOVEMBER 16, 2004 — 5:00 P.M.
5:00 P.M. SESSION
CALL TO ORDER — Mayor McDowell at 5:12 p.m.
ROLL CALL
Mayor McDowell - Present
Mayor Pro Tem Gaines - Present
Council Member Boulgarides - Present
Council Member Busch - Present
Council Member Jacobson - Present
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City
Council on behalf of another, and employees speaking on behalf of their employer, must so identify
themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250.
SPECIAL MATTERS - NONE
CLOSED SESSION:
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)) — 5
matters
Flynn v. City of El Segundo, LASC No. YC046253
Bressi v. City of El Segundo, LASC Nos. BC288292 and 288293
City of El Segundo v. Stardust West Apartments, LASC No. YC031364
Pulido v. City of El Segundo, USDC No. 03CU7563
In re Petition of Time Warner Inc., Federal Communications Commission, CSR -EI Segundo CA
0467 (filed 10/18/2004)
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): -1- matter
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957) — 0 matter
MINUTES OF THE REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 2004
PAGE NO. 1 'T
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6) — 0 matter
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) — 0 matter
Council moved into open session at 6:59 P.M.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 2004
PAGE NO. 2
3
0
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, NOVEMBER 16, 2004 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER — Mayor McDowell at 7:00 p.m.
INVOCATION— Rev. Bonnie Wulff from the Living in the Inner Light Foundation
PLEDGE OF ALLEGIANCE — Council Member Jim Boulgarides
PRESENTATIONS —
(a) Mayor Pro Tern Gaines presented a Proclamation to Chief Norm Angelo observing
November 22, 2004 through December 17, 2004 as the Spark of Love Toy Drive and
encouraging the community to support this holiday program by contributing toys and non-
perishable foods to the El Segundo Fire Department during November 22 through
December 17, 2004.
(b) Presentation of award by the Municipal Information Systems Association of California
(MISAC) to the City of El Segundo and for "Excellence in Information Technology
Practices ".
ROLL CALL
Mayor McDowell - Present
Mayor Pro Tern Gaines - Present
Council Member Boulgarides - Present
Council Member Busch - Present
Council Member Jacobson - Present
PUBLIC COMMUNICATIONS — (Related to Citv 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.
Ron Swanson, representing the Chamber of Commerce, spoke on the upcoming Holiday Parade.
Chris Powell, School Board Member, spoke regarding Item 1, waiving fees for special events and
requested clarification.
A. PROCEDURAL MOTIONS
MINUTES OF THE REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 2004
PAGE NO. 3
J `i
Consideration of a motion to read all ordinances and resolutions on the Agenda by title only.
MOVED by Council Member Jacobson, SECONDED by Mayor Pro Tern Gaines to read all
ordinances and resolutions on the Agenda by title only. MOTION PASSED BY UNANIMOUS
VOICE VOTE. 5/0
SPECIAL ORDERS OF BUSINESS
UNFINISHED BUSINESS
Consideration and possible action regarding fee waivers for special events. Adopt fee
waiver guidelines for Special Event Permits. Establish Fee Waiver Account. (Fiscal Impact:
$23,041)
Mary Strenn, City Manager, gave a report.
Stacia Mancini, responded to questions.
Council consensus to return with an additional analysis of normal work hour operation costs versus
overtime costs, and develop a policy on "co- sponsorship" of events. Also notify any affected
organizations of potential changes to City policy regarding fee waivers. Re- analize at budget
review.
REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS
2. Consideration and possible action regarding the announcement of the appointments of two
candidates to the Planning Commission, one appointment to the Community Cable Advisory
Committee, and the appointment of a resident representative to the Economic Development
Advisory Council.
Mayor McDowell announced the following appointments:
Appointed Cheryl Ann Frick to a full four -year term on the Planning Commission to expire June 30
2008 and David Wagner to a partial term on the Planning Commission to expire June 30, 2007;
appointed Philip Georgious to a full four -year term on the Community Cable Advisory Commission
to expire October 31, 2008; and appointed Scott Reed to the Economic Development Advisory
Council no term expiration.
Council Member Busch noted that after speaking with his employer he did not have a potential
conflict with Consent Item 8.
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.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 2004
PAGE NO. 4
35
3. Approved Warrant Numbers 2544086 to 2544330 on Register No. 3 in the total amount of
$1,137.211.00 and Wire Transfers from 10/22/2004 through 11/04/2004 in the total amount
of $335,688.83. 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.
4. Approved City Council Meeting Minutes of November 3, 2004.
5. Adopted annual Resolutions Nos. 4399, 4400, 4401, 4402 and 4403 establishing and
updating the City /employer's contribution under the Public Employees' Medical and Hospital
Care Act for the City's bargaining units.
6. Approved a three -year Memorandum of Understanding (labor agreement No. 3411)
between the City of El Segundo and the El Segundo City Employees Association. (Fiscal
Impact: FY 2004 -2005 is $155,100). Adopted Resolution No. 4404 approving the
Memorandum of Understanding.
7. Approved a three -year Memorandum of Understanding (labor agreement No. 3412)
between the City of El Segundo and the El Segundo Police Support Services Employees
Association. (Fiscal Impact: FY 2004 -2005 is $45,000). Adopted Resolution No. 4405
approving the Memorandum of Understanding.
8. Approved an operation permit located at 1924 East Maple Street and /or 500 South Douglas
Street to allow Dav -El Chauffeured Transportation Network, a chauffeured limousine
business to transport passengers on the City's public streets.
9. Adopted of plans and specifications for the 2004 -2005 Annual Contract for the City -wide
Curb and Sidewalk Repair Program — Project No. PW 04 -11. (Estimated Cost: $50,000)
Authorized staff to advertise the project for receipt of construction bids.
10. PULLED FOR DISCUSSION BY COUNCIL MEMBER BUSCH
11. Authorized the City Manager to issue a letter of concurrence to the City of Simi Valley to
utilize a radio frequency co- channeled with one assigned to the City.
12. Approved a special permit, per Municipal Code, Section 8- 8 -7(D) (2), the waiver of fees for
city services associated with Holiday Main Street Parade. (Fiscal Impact: $8,233).
13. Awarded a three year Contract No. 3413 to Bell Building Maintenance Company for the
City's janitorial services effective January 1, 2005. (Fiscal Impact: $106,812) Authorized
the City Manager to execute an agreement for services subject to approval by the City
Attorney.
MOVED by Mayor Pro Tern Gaines, SECONDED by Council Member Busch to approve Consent
Agenda Numbers 3, 4, 5, 6, 7, 8, 9, 11, 12 and 13. MOTION PASSED BY UNANIMOUS VOICE
VOTE. 4/0.. MAYOR PRO TEM GAINES ABSTAINING ON CONSENT ITEM 4 AS HE WAS
ABSENT FROM THE MEETING.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 2004
PAGE NO. 5
J C/
CALL ITEMS FROM CONSENT AGENDA
10. Waive formal bidding process per the Municipal Code, and approve the City's use of a State
of California approved — California Multiple Award Schedule (CMAS) Contract #GS -27F-
0034A for library carpet with Shaw Industries, Inc. (manufacturer) and award Contract No.
3414 to the authorized distributor and installers Spectra Contract Flooring, in the amount of
$67,000 for carpeting and installation on the main floor of the City Library.
MOVED by Mayor Pro Tern Gaines, SECONDED by Council Member Jacobson to waive formal
bidding process per the Municipal Code, and approve the City's use of a State of California
approved — California Multiple Award Schedule (CMAS) Contract #GS- 27F -0034A for library carpet
with Shaw Industries, Inc. (manufacturer) and award Contract No. 3414 to the authorized
distributor and installers Spectra Contract Flooring, in the amount of $67,000 for carpeting and
installation on the main floor of the City Library. MOTION PASSED BY UNANIMOUS VOICE
VOTE. 5/0
F. NEW BUSINESS
14. Consideration and possible action regarding adoption of a resolution increasing the civil
penalties for parking violations regulated by Title 8 of the El Segundo Municipal Code,
Captain Mitch Tavera gave a report and responded to questions.
MOVED by Mayor Pro Tern Gaines, SECONDED by Council Member Busch to adopt Resolution
No. 4406 increasing the City's civil penalties for parking violations, including but not limited to
street sweeping violations. MOTION PASSED BY THE FOLLOWING VOICE VOTE: AYES:
MAYOR MCDOWELL, MAYOR PRO TEM GAINES, COUNCIL MEMBERS BUSCH AND
JACOBSON; NOES: COUNCIL MEMBER BOULGARIDES. 4/1
15. Consideration and possible action regarding the authorization for the Fire Department to
Purchase an Urban Search and Rescue (USAR) Vehicle from the sole source vendor,
Hackney Emergency Vehicle Company. (Fiscal Impact: $530,000 for Vehicle and
Equipment).
Norm Angelo, Fire Chief, gave a report.
MOVED by Mayor Pro Tern Gaines, SECONDED by Council Member Busch to, pursuant to El
Segundo Municipal Code Sec. 1 -7 -10, waive the bidding process based upon sole source vendor
for an Urban Search and Rescue (USAR) Vehicle which is in keeping with NFPA Standard 1901
and meets the City of El Segundo Fire Department specifications. Authorize the City Manager to
sign Contract No. 3415 with the Hackney Emergency Vehicle Company to build an Urban Search
and Rescue Vehicle. Authorize the disposal of the Technical Rescue Vehicle at auction after the
USAR vehicle is in service. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0
G. REPORTS — CITY MANAGER
MINUTES OF THE REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 2004
PAGE NO. 6
37
16. Consideration and possible action regarding a status report on the direction from the Los
Angeles County Department of Health Services (DHS), Emergency Medical Division
regarding paramedic transports after the pending closure of Robert F. Kennedy (RFK)
Hospital. There will be an oral presentation. (Fiscal Impact: None)
Mary Strenn, City Manager, and Norm Angelo, Fire Chief, gave a report.
Council consensus to receive and file status report on the direction from the Department of Health
Services (DHS) regarding paramedic transports after the closure of Robert F. Kennedy (RFK)
Hospital.
H. REPORTS — CITY ATTORNEY — NONE
REPORTS — CITY CLERK
17. Demonstration of Questys Document Imaging Program.
J. REPORTS — CITY TREASURER — NONE
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Boulgarides —
18. Consideration and possible action regarding a status report on implementation of Public
Access Defibrillators ('PADS ") in City of El Segundo buildings. (Fiscal Impact: None)
Norm Angelo, Fire Chief, gave a report.
Council consensus to receive and file status report on implementation of PADS.
Council Member Boulgarides noted that work was progressing on Campaign Finance Reform sub-
committee.
Council Member Busch — Praised the Fire Department for their excellent work on a recent
residential fire. Also wished everyone a wonderful Thanksgiving.
Council Member Jacobson — Noted that that the Planning Commission postponed the Plaza El
Segundo Item until their meeting on December 15, 2004.
Mayor Pro Tern Gaines — Reported on the six -year Transportation Authorization Bill in Congress.
Reported on upcoming SBCOG Homeland Security Task Force meeting. Requested a review on
emergency notification plan be agendized for the second meeting in December.
Mayor McDowell — Requested information be brought back to Council regarding type of recognition
for 911 event along with other veterans day recognitions. Requested a brief presentation from the
LAEDC or Regional Alliance on efforts in keeping the Air Force Base here in El Segundo and
financial impact of revenues and expenditures generated by LAAFB.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 2004
PAGE NO. 7
38
Also announced the cities of Los Angeles and El Segundo have agreed to enter negotiations to
draft a intergovernmental agreement regarding the LAX Master Plan.
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.- NONE
CELEBRATIONS — Birth of Hunter Angelo Trujillo, born Thursday, November 4, 2004, to Holly and
John Trujillo of Puyallup, Washington. Hunter's grandparents are Fire Chief Norm Angelo and wife
Linda.
CLOSED SESSION - NONE
ADJOURNMENT at 8:38 p.m.
Cathy Domann, Deputy City Clerk
MINUTES OF THE REGULAR CITY COUNCIL MEETING
NOVEMBER 16, 2004
PAGE NO. 8
39
SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, NOVEMBER 16, 2004 — 4:30 P.M.
CALL TO ORDER — Mayor McDowell at 4:30 p.m.
ROLL CALL
Mayor McDowell -
Present
Mayor Pro Tern Gaines -
Present
Council Member Boulgarides -
Present
Council Member Busch -
Present
Council Member Jacobson -
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.
SPECIAL MATTERS — (INTERVIEWS TO BE CONDUCTED IN THE WEST CONFERENCE
ROOM)
1. Interview of candidates for the Planning Commission, Community Cable Advisory Committee,
and a resident representative to the Economic Development Advisory Council and
appointments for such positions.
Council consensus to appoint Cheryl Ann Frick to a full four -year term on the Planning Commission
to expire June 30 2008 and David Wagner to a partial term on the Planning Commission to expire
June 30, 2007; Philip Georgious to a full four -year term on the Community Cable Advisory
Commission to expire October 31, 2008; and Scott Reed to the Economic Development Advisory
Council no term expiration.
ADJOURNED at 5:11 p.m.
Cathy Domann, Deputy City Clerk
`1 IJ
SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
THURSDAY, NOVEMBER 11, 2004 — 7:00 A.M.
CALL TO ORDER — 7:03 a.m. Mayor McDowell.
ROLL CALL
Mayor McDowell -
Present
Mayor Pro Tern Gaines -
Absent
Council Member Boulgarides -
Present
Council Member Busch -
Present
Council Member Jacobson -
Present
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City
Council on behalf of another, and employees speaking on behalf of their employer, must so identify
themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250.
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 fol lows:
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code §54956.9(b): -0- potential case;
Initiation of litigation pursuant to Government Code §54956.9(c): -1- matter.
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6) — 0 matters
Announcements by City Attorney if any
ADJOURNMENT at 8:07 a.m.
Cindy Mortesen, City Clerk
41
E,L SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action regarding adopting a Resolution allowing a pre tax
employee payroll deduction plan for service credit purchases, such as additional retirement
service credit, military service, and Peace Corps /AmeriCorps under Internal Revenue Code
(IRC) section 414(h)(2).
RECOMMENDED COUNCIL ACTION:
1) Adopt the attached Resolution.
2) Alternatively discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
City employees have a number of options for purchasing additional years of California Public
Employee Retirement System (CaIPERS) service credit including additional retirement service
credit, "air time ", military service, and Peace Corps /AmeriCorps.
The cost of purchasing service credit can be impacted by factors including the "actuarial
assumptions" used by Cal PERS, the age of the employee, the number of years of CaIPERS
service, and the number of years until retirement. Each employee must individually review the
potential impact of these factors to determine if it would be financially justifiable to make such
a purchase.
- Continued on next page -
ATTACHED SUPPORTING DOCUMENTS:
Resolution to allow Pre -Tax Payroll Deduction Plan for Service Credit Purchases
FISCAL IMPACT:
Operating Budget:
Amount Requested:
Account Number:
Project Phase:
Appropriation Required: _Yes x No
ORIGINATED:
DATE: November 22, 2004
Bret M. Plumlee, Direc of Administrative Services
DATE:
Mary St n, City Manager /Jo /f`
agenda527
5
BACKGROUND & DISCUSSION (continued):
Pre -Tax Payments
There are several methods of payment available to the employee to purchase additional
service credit including lump sum payments, installment payments, and pre -tax payments.
One method available to employees making installment payments for purchasing service credit
is the 'Pre -Tax" (Tax Deferred) payroll deduction plan. This option allows the employee to
defer the income tax liability through payroll deductions and is not allowed under lump sum
payments.
For employees that work in a public agency, the employer must file a resolution with CalPERS
to provide the Tax Deferred option.
Employees who choose to make this election at any time during his or her payment
schedule with CalPERS will be required to sign a binding, irrevocable election with
CalPERS, who will then notify the City to begin making tax deferred payroll deductions.
Employees that participate in any other tax - deferred plan such as Deferred Compensation
will need to consider the impact of this service credit purchase on the dollar limitations
imposed by the IRS guidelines for deferring compensation in other programs. The decision
and cost to purchase airtime or any other service credit purchases is borne solely by the
employee.
Since this option will allow significant tax savings to the employee without any cost to the City,
staff is recommending City Council approve the attached Resolution to allow these payments
to be made on a pre -tax basis.
4
Employer code: 0039
EMPLOYER PICKUP RESOLUTION
PRE -TAX PAYROLL DEDUCTION PLAN
FOR SERVICE CREDIT PURCHASES
(CONTRIBUTION CODE 14)
WHEREAS, the Board of Administration of the California Public Employees'
Retirement System (Ca1PERS) at the April 1996 meeting approved a pre -tax payroll
deduction plan for service credit purchases under Internal Revenue Code (IRC) section
414(h)(2); and
WHEREAS, the City of El Segundo has the authority to implement the provisions of IRC
section 414(h)(2) and has determined that even though implementation is not required by
law, the tax benefit offered by this section should be provided to those employees who
are members of Ca1PERS; and
WHEREAS, the City of El Segundo elects to participate in the pre -tax payroll deduction
plan for all employees in the following CalPERS coverage groups:
Miscellaneous 70002
Safety Police 75001
Safety Fire 74001
NOW, THEREFORE, BE IT RESOLVED:
I. That City of El Segundo will implement the provisions of IRC section
414(h)(2) by making employee contributions for service credit purchases
pursuant to the California State Government Code on behalf of its employees
who are members of CalPERS and who have made a binding irrevocable
election to participate in the pre -tax payroll deduction plan. "Employee
contributions" shall mean those contributions reported to CalPERS which are
deducted from the salary of employees and are credited to individual
employee accounts for service credit purchases, thereby resulting in tax
deferral of employee contributions.
II. That the contributions made by the City of El Segundo to CalPERS, although
designated as employee contributions, are being paid by the City of El
Segundo in lieu of contributions by the employees who are members of
CalPERS.
III. That the employees shall not have the option of choosing to receive the
contributed amounts directly instead of having them paid by the City of El
Segundo to CalPERS.
44
IV. That the City of El Segundo shall pay to Ca1PERS the contributions
designated as employee contributions from the same source of funds as used
in paying salary, thereby resulting in tax deferral of employee contributions.
V. That the effective date for commencement of the pre -tax payroll deduction
plan cannot be any earlier than July 1, 1996, or the date the completed
resolution is received and approved in Ca1PERS, whichever is later.
VI. That the governing body of the City of El Segundo shall participate in and
adhere to requirements and restrictions of the pre -tax payroll deduction plan
by reporting pre -tax payroll deductions when authorized by Ca1PERS for
those employees of the above stated Coverage Groups who have elected to
participate in this plan.
PASSED AND ADOPTED by the governing body of the City of El Segundo this
day of 2004.
RETURN ADDRESS:
350 Main Street
El Segundo, CA 90245
a
(Signature of Official)
(Title of Official)
FOR CALPERS USE ONLY
Pre -tax Payroll Deduction Plan Effective Date:
Approved
Title:
MEMBER SERVICES DIVISION, Service Credit Section — Unit 830
45
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to waive the formal bidding process on the purchase of
radio equipment for the El Segundo Police Department. The total cost is approximately
$35,086.00 using monies awarded through the State Homeland Security Grant Program
( SHSGP) under the SHSGP FY2004 Federal Budget Year. Fiscal Impact: $35,086.00
RECOMMENDED COUNCIL ACTION:
1) Pursuant to El Segundo Municipal Code Sec. 1 -7 -10, waive the bidding process based
upon sole source vendor for the purchase of up to 10 digital /analog mobile radios from
the SHSGP FY2004 Grant Program;
2) Authorize the spending of up to $35,086.00;
3) Alternatively, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
On October 10, 2004, the City Council approved the acceptance of $63,137.00 in SHSGP
grant program funding for the purchase of equipment to respond and manage terrorism
incidents occurring within and surrounding the City of El Segundo. A total of $35,086.00 of the
$63,137.00 in approved grant purchases will be made as follows:
1. $21,092.00 total for interoperability capable mobile communications equipment for six
(6) ESPD patrol vehicles;
2. $13,994.00 total using SHSGP Law Enforcement Terrorism Prevention Program
(LETPP) funding specifically allocated for anti - terrorism investigative activities. Radios
will be placed into ESPD detective and investigator vehicles.
Continued on next page
ATTACHED SUPPORTING DOCUMENTS:
None
FISCAL IMPACT: None
Operating Budget:
Amount Requested:
Account Number:
Project Phase:
Appropriation Required:
$35,100.00
$35,100.00
001 - 300 - 0000- 3735(Revenue)
001 - 400 - 3255- 8104(Expenditure)
N/A
_Yes No
ORIGIyATED:
DATE:
P la oPolice Chief
REVIEWED BY:
DATE:
Mary St n, City Manager
4G
101
BACKGROUND & DISCUSSION (continued):
The SHSGP Grant is provided on a 100% federal share formula; the federal government
provides reimbursement to El Segundo for actual expenditures.
The Police Department needs to purchase radios to operate in multimode (digital, analog, and
trunking) capability for the varied systems utilized at the local, county, regional, state, and
federal levels of operation within Los Angeles County and OES Mutual Aid Region I and IA.
The new radios will allow the department to operate in either mode without any loss of
communication ability. Other South Bay departments are currently using analog UHF
frequencies, including the Los Angeles County Sheriffs Department (LASD). The Los Angeles
Police Department (LAPD) is using UHF digital frequencies.
All new radios purchased with federal grant funds are required by the Federal Communications
Commission (FCC) and the U.S. Department of Homeland Security to be interoperable and
analog /digital capable, and must meet the APCO -25 Project radio standards. The radios
being purchased meet or exceed the designated standards.
The Police Department following the recent upgrade of the Fire Department mobile radio
systems will allow the El Segundo public safety radio systems to be within compliance of the
goals and standards established by the U.S. Department of Homeland Security and FCC.
The Police department is requesting to sole source the purchase of the radios through
Motorola based on the factor of consistency, ease of operation /maintenance as all of our
existing public safety radios and related infrastructure is manufactured by Motorola. Motorola
also complies with the federal specifications under the grant guidelines.
The City will be able to receive an additional pricing discount as a result of our relationship with
the Interagency Communications Interoperability System (ICIS) Joint Powers Authority.
Based on these factors, as well as the efficiency of having consistency throughout the city, the
El Segundo Police Department is requesting a sole source purchase from Motorola.
Conditions required under this graft
a. All equipment purchased under the grant funding is required to be maintained
and replaced under the city's capital equipment replacement standards.
b. The City of El Segundo must maintain an inventory system for all items
purchased under the Homeland Security grant programs.
There will be a future equipment replacement fund charge of $5,000.00 per year.
47
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to approve the easement agreement between the Los
Angeles County Metropolitan Transportation Authority (MTA) and the City of El Segundo for
construction of the Douglas Street Project within MTA property - Approved Capital
Improvement Project - (No fiscal impact).
RECOMMENDED COUNCIL ACTION:
Recommendation — (1) Approve easement agreement ; (2) Authorize the City Manager to
execute the agreement on behalf of the City; and /or (3) Alternatively, discuss and take other
action related to this item.
BACKGROUND & DISCUSSION:
The roadway for the proposed Douglas Street Project crosses property currently owned by the
MTA at the Douglas Street Green Line Station.
The enclosed easement agreement prepared by the MTA provides for the City to construct the
roadway under the Green Line Station (within MTA property) including other improvements
such as storm drain station, structural support work for the station, and drainage lines.
MTA is providing this easement at no cost to the City.
ATTACHED SUPPORTING DOCUMENTS:
1. Easement Agreement.
2. Location man
, rte„ 111ffrHU I: ivone
Capital Improvement Program:
Amount Requested:
Account Number:
Project Phase:
Seimone Jurjis, Di ector of Planninq and
Mary Strenn,`Gity Ma
DATE: November 30, 2004
/ Acting City Engineer
DATE:
// /° °y
12 -07-04 Approve the Easement Agreement between LACMTA 7
and City for Constmction of the Douglas Street Project
45
Recording Requested By
And When Recorded, Mail To:
City of El Segundo
Public Works Department
350 Main Street
El Segundo, CA 90245 -3895
Space above for Recorder's Use
NO DOCUMENTARY TRANSFER TAX REQUIRED - CA Rev & Tax Code Section 11922
FREE RECORDING: Government Code Section 6103 —CA Gov't Code Section 27383
EASEMENT AGREEMENT
THIS EASEMENT AGREEMENT (hereinafter referred to as "Agreement ") is entered into on
this 16`h day of November, 2004, by and between the LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY (hereinafter referred to as "MTA "), a
public agency existing under the authority of the laws of the State of California, and CITY OF
EL SEGUNDO (hereinafter referred to as "Grantee'), a public agency, upon and in
consideration of the following agreements, covenants, terms and conditions:
L Grant. Subject to the reservation rights of MTA under Section 2 of this Agreement,
MTA hereby grants to Grantee a non - exclusive easement to construct, operate, and maintain a
underpass road, supporting slopes, water lines, water pump facility, tie backs, column restraints,
subsurface drainage line and appurtenant structures, on, under, and upon that certain real property
(hereinafter referred to as "Property ") as more particularly described on Exhibit "A" attached
hereto and incorporated herein by this reference.
2 Reservation. This grant is made subject to and subordinate to the prior and continuing
right and obligation of the MTA, its successors and assigns, to use the Property in exercise of its
powers and in the performance of its duties, including those as a public transportation body.
Notwithstanding other rights of the MTA, the MTA hereby specifically reserves to itself, and its
successors and assigns, the right to also use the Property as granted herein to Grantee, including
but not limited to, construction, installation, operation, maintenance, repair, reconstruction,
renewal, and/or relocation any new or existing railroad tracks, facilities, and appurtenances,
and/or any existing or future transportation, communication, and pipeline improvements,
facilities, and appurtenances, wires, fiber optic, cable, pipes, utilities, and other facilities
and/or improvements consistent with the rights granted herein, provided, however, that in the
exercise of such rights, the MTA shall use reasonable care not to interfere with the use by
Grantee of the Property as granted herein nor materially or adversely affect Grantee's use of the
Property. The easement granted herein is subject to all existing uses, license, leases, easements,
restrictions, conditions, covenants, liens and claim of title which may affect said Property,
including but not limited to an existing operating railroad and existing operating transit system
with structural columns within the Property.
1
3. Construction. Any work performed or caused to be performed by Grantee, on the
Property shall be done in accordance with any and all applicable laws and regulations, and in a
manner which is equal to or greater than the then applicable standards of the industry for such
work. Prior to commencement of any construction, reconstruction, installation, repair, or
alteration (other than normal maintenance) on the Property, Grantee shall submit work plans to
MTA for its prior review and approval. Any such construction, reconstruction, installation,
alteration and repair must be carried out pursuant to work plans approved in writing by MTA.
MTA's approval will not be unreasonably withheld. In addition, Grantee, or shall contact MTA
at least five (5) business day prior to commencement of any work on the Property, except in
cases of emergency, in which event Grantee shall notify MTA's representative personally or by
phone as soon thereafter as reasonably practical. Grantee shall notify MTA within three (3) days
after completion of any work on the Property. Explosives or other highly inflammable substances
shall not be stored nor used on the Property without the prior approval of MTA's representative.
MTA shall have the right at any time to inspect the Property so as to monitor compliance with
this Agreement. MTA shall be permitted to conduct any tests or assessments, including but not
limited to environmental assessments, of, on or about the Property, as it determines to be
necessary or useful to evaluate the condition of the Property. Grantee shall cooperate with MTA
in any tests or inspections deemed necessary by MTA. In addition, Grantee, at Grantee's sole
expense, shall maintain facility and/or improvements in good condition during the term of this
Agreement and shall perform all maintenance of the Property as necessary to keep the Property in
good order and condition. The term "Grantee" as used in this Agreement shall include its
successor and/or assign.
4. Liens. Grantee will fully and promptly pay for all materials joined or affixed to the
Property, and fully and promptly pay all persons who perform labor upon said Property. Grantee
shall not suffer or permit to be filed or enforced against the MTA and/or the Property or any part
thereof, any mechanics', materialmens', contractors', or subcontractors' liens or stop notices
arising from, or any claim, growing out of the work performed by Grantee or its agents. Grantee
shall pay or cause to be paid all such liens, claims or demands within ten (10) business days
after notice thereof and shall indemnify, hold harmless and defend MTA from all obligations and
claims made against MTA for the above described work, including attorneys' fees. Grantee shall
furnish evidence of payment upon request of MTA. Grantee may contest any lien, claim, demand
or stop notice by furnishing a statutory lien bond to MTA in compliance with applicable
California law, or providing other security which is reasonably acceptable to MTA. If Grantee
does not discharge any mechanic's lien or stop notice for work performed for Grantee, MTA shall
have the right to discharge same (including by paying the claimant) and Grantee shall reimburse
MTA for the cost of such discharge within ten (10) business days after billing. After this ten (I o)
business day period, such amount shall bear interest at the rate of four percent (4 %) per annum in
excess of the prime rate established by Wells Fargo Bank or its successor or assign from time to
time. MTA reserves the right at any time to post and maintain on the Property such notices as
may be necessary to protect MTA against liability for all such liens and claims
of this paragraph shall survive the termination of this Agreement. . The provisions
2 51)
5. Compliance with Laws. Grantee shall comply with all applicable federal, state and
local laws, regulations, rules and orders in its use of the Property and shall furnish satisfactory
evidence of such compliance promptly upon request of MTA. The MTA may enter the Property
to make inspections at any time, upon provision of reasonable notice of inspection to Grantee.
Grantee shall obtain all required permits or licenses required by any governmental authority for
the use of the Property at its sole cost and expense.
6 Abandonment. Should Grantee at any time abandon the use of the Property, or
any part thereof, or fail at any time for a continuous period of one (1) year to use the same for the
Purposes contemplated herein, then this Agreement shall terminate to the extent of the portion so
abandoned or discontinued, and in addition to any other rights or remedies, with respect to the
portion so abandoned or discontinued, MTA shall immediately be entitled to exclusive
Possession and ownership without the encumbrance of this Agreement or the easement granted
herein, and upon MTA's re -entry, Grantee at its sole cost shall remove its facility and/or
improvements from the Property and restore the Property to the same state and condition in
which it existed prior to the granting of this easement.
7. Breach. Should Grantee breach, or fail to keep, observe or perform any
agreement, covenant, term or condition on its part herein contained, then, in addition to any other
available rights and remedies, MTA may at its option (i) perform any necessary or appropriate
corrective work at Grantee's expense, which Grantee agrees to pay to MTA upon demand or (ii)
immediately terminate this Agreement upon delivery of written notice thereof to Grantee. Upon
termination of this Agreement, Grantee shall promptly execute and deliver to MTA a quitclaim
deed in recordable form quitclaiming and releasing all rights granted in this Agreement. Upon
termination of this Agreement, Grantee, at its own cost and expense, shall remove Grantee's
facility and/or improvements and restore the Property as nearly as possible to the same state and
condition as existed prior to the granting of this easement. No termination hereof shall release
Grantee from any liability or obligation hereunder, whether of indemnity or otherwise, resulting
from any acts, omissions or events happening prior to the date of the removal of Grantee's
facility and/or improvements and the Property is restored.
8. Indemnification. Grantee, on behalf of itself and its successors and assigns,
agrees to indemnify, defend (by counsel reasonably satisfactory to MTA), and hold harmless
MTA and its subsidiaries, directors, officers, employees, agents, successors and assigns
(individually and collectively referred to as "Indemnitees "), to the maximum extent allowed by
law, from and against all loss, liability, claims, demands, suits, liens, claims of lien, damages
(including consequential damages), costs and expenses (including, without limitation, any fines,
penalties, judgments, litigation expenses, and experts' and attorneys' fees), that are incurred by or
asserted against Indemnitees arising out of or connected in any manner with (i) the acts or
omissions to act of the Grantee, or its officers, directors, affiliates, employees, agents, visitors,
invitees, subcontractors and contractors or anyone directly or indirectly employed by or for
whose acts Grantee is liable (collectively, "Personnel ") in connection with the Property or any
Portion thereof or arising from the presence upon or performance of activities by Grantee or its
Personnel with respect to the Property or any portion thereof, (ii) bodily injury to or death of any
person (including employees of Indemnitees) or damage to or loss of use of property resulting
from such acts or omissions of Grantee or its Personnel, or (iii) non - performance or breach by
3 51
Grantee or its Personnel of any term or condition of this Agreement, in each case whether
occurring during the term of this Agreement or thereafter.
The foregoing indemnity shall be effective regardless of any negligence (whether passive,
derivative, joint, concurring or comparative) on the part of Indemnitees, unless caused solely by
the active negligence or willful misconduct of Indemnitees; shall survive termination of this
Agreement; and is in addition to any other rights or remedies which Indemnitees may have under
the law or under this Agreement.
Claims against the Indemnitees by Grantee or its Personnel shall not limit the Grantee's
indemnification obligations hereunder in any way, whether or not such claims against
Indemnitees may result in any limitation on the amount or type of damages, compensation, or
benefits payable by or for a Grantee or its Personnel under workers' compensation acts, disability
benefit acts or other employee benefit acts or insurance. Grantee assumes any and all risk of ]oss,
damage, or injury of any kind to any person or property as a result of its occupancy of the
Property.
To the maximum extent allowed by law Grantee assumes any and all risk of loss, damage or
injury of any kind to any person or property, including without limitation, the Property or any
Portion thereof and any other property of, or under the control or custody of Grantee, which is on
or near the Property. Grantee's assumption of risk shall include, without limitation, loss or
damage caused by defects in any structure or improvement on the Property, accident or fire or
Other casualty on the Property, or electrical discharge, noise or vibration resulting from MTA's
transportation operations on or near the Property. The term 'MTA" as used in his paragraph
shall include: (i) any transportation company validly operating upon or over MTA's right -of -way,
and (ii) any other persons or companies employed, retained or engaged by MTA. Grantee, on
behalf of itself and its Personnel, as a material part of the consideration for this Agreement,
hereby waives all claims and demands against MTA for any such loss, damage or injury of
Grantee and/or its Personnel.
The provisions of this paragraph shall survive the termination of his Agreement.
9. the Property nan ompliancelwi h, and shall not cause or permit het Propearty to ra eaviomain of
any federal, state or local environmental, healh and/or safety - related laws, regulations, standards,
decisions of the courts, permits or permit conditions, currently existing or as amended or adopted
in the future which are or become applicable to Grantee or the Property (`Environmental Laws ").
Grantee shall not cause or permit, or allow Grantee's Personnel to cause or permit, any
Hazardous Materials to be brought upon, stored, used, generated, treated or disposed of on or
about the Property. Any Hazardous Materials placed on the site by Grantee shall be disposed of
in accordance with all applicable Environmental Laws. As used herein, "Hazardous Materials"
means any chemical, substance or material which is now or becomes in the future listed, defined
or regulated in any manner by any Environmental Law based upon, directly or indirectly, its
properties or effects.
4 J 4 ,
Grantee shall indemnify, defend and hold harmless the Indemnities (as defined in above
Paragraph 8) from and against all loss, liability, claim, damage, cost or expense (including
without limitation, any fines, penalties, judgments, litigation expenses, attorneys' fees, and
consulting, engineering, and construction fees and expenses) incurred by Indemnitees as a result
of (a) Grantee's breach of any prohibition or provision of this section, or (b) any release of
Hazardous Materials upon or from the Property or contamination of the Property or adjacent
properties which (i) occurs due to the use and occupancy of the Property by Grantee or Grantee's
Personnel, or (ii) is made worse due to the act or failure to act of Grantee or Grantee's Personnel.
The foregoing indemnity shall be effective regardless of any such negligence (whether
passive, derivative, joint, concurring or comparative) on the part of Indemnitees, unless caused
solely by the active negligence or willful misconduct of Indemnitees; shall survive termination of
this Agreement; and is in addition to any other rights or remedies which Indemnitees may have
under the law or under this Agreement. In addition, in the event of any release on or
contamination of the Property by Grantee, Grantee, at its sole expense, shall promptly take all
actions necessary to clean up the affected property (including the Property and all affected
adjacent property -- whether or not owned by MTA) and to clean the affected property to the
satisfaction of the government agency having jurisdiction or, return the affected property to the
condition existing prior to such release or contamination.
10. Notices. All notices and demands which either party is required to desires to or give
to the other shall be made in writing by personal delivery, by express courier service or by
certified mail postage prepaid, and addressed to such party at its address set forth below. Either
party may change its address for the receipt of notice by giving written notice thereof to the other
party in the manner herein provided. Notices shall be effective only upon receipt by the party to
whom notice or demand is given.
Grantee:
City of El Segundo
Public Works Department
350 Main Street
El Segundo, CA 90245 -3895
MTA:
Los Angeles County
Metropolitan Transportation Authority
One Gateway Plaza 14`h Floor
Los Angeles, CA 90012
Attn: Real Estate Department
11. Maintenance and Repair. Grantee, at Grantee's sole expense, shall maintain the
Property and its improvements in a first class condition during the term of this Agreement, and
shall perform all maintenance, repairs, and cleanup of the Property and improvements, including
but not limited to graffiti removal, as necessary to keep the Property and improvements in good
order and condition.
12• Governing Law. This Agreement shall be governed by the laws of the state of
California, and exclusive venue is the County of Los Angeles.
5 j J
13. Severabilitv. If any term, covenant, condition or provision of this Agreement, or
the application thereof to any person or circumstance, shall to any extent be held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
covenants, conditions, or provisions of this Agreement, or the application thereof to any person
or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or
invalidated thereby.
14. Waiver of Covenants or Conditions. The waiver by one party of the performance
Of any covenant or condition under this Agreement shall not invalidate this Agreement nor shall
it be considered a waiver by it of any other covenant or condition under this Agreement.
15. Amendment. This Agreement may be amended at any time by the written
agreement of MTA and Grantee. All amendments, changes, revisions, and discharges of this
Agreement in whole or in part, and from time to time, shall be binding upon the parties despite
any lack of legal consideration, so long as the same shall be in writing and executed by the
parties hereto.
16. Binding Effect. The covenants, terms and conditions hereof shall inure to the
benefit of and be binding upon the heirs, successors and assigns of the parties. Prior to any
transfer or assignment, the transferring party will provide written notice thereof to the other
Party. This Agreement is intended to benefit only the parties hereto and no other person or entity
has or shall acquire any rights hereunder, except Grantee and subsequent lot owners as described
in Paragraph 19 below.
17. Attomevs' Fees. In any proceeding involving performance under this Agreement,
or default or breach thereof, the prevailing party shall be entitled to its reasonable attorney's fees
and costs. The prevailing party is the party that the court determines substantially obtained the
relief it was seeking in the proceeding.
18. Nondisc_ _ rimination. Grantee certifies and agrees that all persons employed by it
and/or its affiliates, subsidiaries, or holding companies and any contractors retained by it with.
respect to the Property are and shall be treated equally without regard to or because of race,
religion, ancestry, national origin, or sex, and in compliance with all federal and state laws
prohibiting discrimination in employment, including but not limited to the Civil Rights Act of
1964; the Unruh Civil Rights Act; the Cartwright Act; and the California Fair Employment
Practices Act.
19. Acceptance This is to certify that the interest in real property conveyed by the
foregoing easement agreement from the Los Angeles County Metropolitan Transportation
Authority, a public agency, to the City of El Segundo ( "Cit}�'), a general law city an d municipal
corporation, is accepted by the undersigned officer on behalf of the City pursuant to authority
conferred by City Council Resolution No. 4255 adopted on April 2, 2002, and the City consents
to recordation thereof by its duly authorized officer.
6 5 y
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives as of the date first written above.
MTA:
LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION
AUTHORITY,
a public agency
By ��CliliL �-
Name: Velma C. Marshall
Title: Director of Real Estate
GRANTEE:
CITY OF EL SEGUNDO,
a public agency
C
Name:
Title:
Approved as to Form A
�tc O
s f T#C--
County my Counsel OFF
By 4�/ 4
DVirtY C unsel ii`2 /d y
JJ
State of California )
ss
County of �cs ,
On NoVe m 6 l r I in 2004 before me, the undersigned, a not
the said - state, personally appeared1 �3 Public in and for
me rnc� e' arc h rill personally known to
to be the persorINLwhose name(s),
islarg: subscribed to the within instrument and acknowledged to me that he,(she /the3yexecuted the
same in his/her /thee authorized capacityjlec), and that by'his/hei r signatures) on the
instrument the person(, or the entity upon behalf of which the person
t-4 P acted, executed the
REGINO BUENROSTRO
WITNESS my hand and official seal COMM. #1442902
IL NOTARY PUBLIC• CALIFORNIA D
Z LOS ANGELES COUNTY
My Comm. Expires Sep. 30,2W7
Printed Name of Notary Public_
My Commission Expires (Seal)
September 30, 200-1
56
State of California )
County of ss
On before me, the undersigned, a not
the said - state, personally appeared —
me public in and for
me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the
instrument the person(a),lto� he entity upon behalf of wahich the sperson(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Printed Name of Notary Public
My Commission Expires (Seal)
9 J!
EXHIBIT "A"
LEGAL DESCRIPTION OF EASEMENT AREAS
PARCEL 2 -5RE
(AIR RIGHTS FOR A UNDERPASS ROAD EASEMENT)
PARCEL 2 -5WP
(EASEMENT FOR WATER PUMP FACILITY)
PARCEL 2 -5DE
(SUBSURFACE EASEMENT FOR DRAINAGE)
PARCEL 2 -5SR
(EASEMENT FOR SEISMIC RESTRAINTS)
PARCEL 2 -5TT
(EASEMENT FOR TIE -BACK)
PARCEL 2 -5TT.1
(EASEMENT FOR TIE -BACK)
10 58
EXHIBIT "A"
DOUGLAS STREET 2-5RE
Includes: Parcel Nos. 2 -5WP, 2 -5DE,
2 -5SR, 2 -5TT, & 2 -5TT.1
Affects: West Coast Basin Barrier Project
Parcel No. 58, 176 -RW4
A.P.N. 4138 -012 -900 and -902
T.G. 732 (J3)
I.M. 069 -157
Fourth District
M02D6854
LEGAL DESCRIPTION
PARCEL NO. 2-5RE (Easement for public road purposes):
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 as PARCEL D -1 in deed to Los Angeles County Transportation Commission
recorded on February 1, 1991, as Instrument No. 91- 155546, of Official Records, in the
office of the Recorder of said county, within the following described boundaries:
Commencing at the most westerly corner of Lot 26, Tract No. 26557, as shown on
map recorded in Book 675, pages 95 through 98, of Maps, in the office of said recorder;
thence South 47 029'18" East, along the southwesterly line of said lot, a distance of 121.11
feet to a point, said point being the beginning of a non - tangent curve concave to the west
and having a radius of 371.00 feet, a radial of said curve to said point bears North
65 °11'07" East; thence southerly, along said curve, through a central angle of 24 °45'01",
an arc distance of 160.26 feet; thence tangent to said curve South 0 003'52" East 18.55
feet; thence North 89 056'08" East 2.25 feet; thence South 0 °03'52" East 22.46 feet to a
point on the northeasterly boundary of said PARCEL D -1, said last mentioned point being
the TRUE POINT OF BEGINNING; thence continuing South 0 003'52" East 135.80 feet to
the southwesterly boundary of said PARCEL D -1; thence North 47 °29'18" West, along said
at certain
southwesterly boundary, a distance of 114.33 feet to the northerly terminus of th
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 said Official Records;
thence continuing North 47 °29'18" West, along said southwesterly boundary, a distance of
6.24 feet; thence North 0 °03'52" East 95.24 feet to a radial of the above described
5 ;i
EXHIBIT "Afr
371.00 -foot radius curve at the southeasterly terminus of said curve; thence North
89 °56'08" East, along said radial, a distance of 2.28 feet to the beginning of a curve
concentric with and 84.25 feet westerly, measured radially, from the above described
371.00 -foot radius curve; thence northerly, along said concentric curve, through a central
angle of 8 015'34 ", an arc distance of 41.34 feet to said northeasterly boundary; thence
southeasterly, along said northeasterly boundary, to the TRUE POINT OF BEGINNING.
Excepting therefrom that portion which lies above a horizontal plane having an
elevation of 94.50 feet, and that portion which lies below a horizontal plane having an
elevation of 20.00 feet.
Also excepting therefrom three 7 -foot diameter cylindrical volumes, each
encompassing one of the Grantor's three eight -sided columns and their cylindrical pile
foundations, between said horizontal plane having an elevation of 94.50 feet and said
horizontal plane having an elevation of 20.00 feet, the horizontal centers of said columns
and piles being on points distant North 0 000'39" West 18.87 feet, 48.14 feet, and 86.94
feet, measured along the northerly prolongation of that certain course having a length of
320.24 feet in the centerline of Douglas Street, 78 feet wide, as said centerline is shown on
Parcel Map No. 17158, filed in Book 208, pages 60 and 61, of Parcel Maps, in the office of
said recorder, from the southerly terminus of said northerly prolongation.
Also excepting therefrom the volume of Grantor's pedestrian bridge, which lies
between horizontal planes having elevations of 82.86 feet at the bridge seats and 94.50
feet, and which is bounded by the following described courses:
Beginning at a point in the above mentioned northerly prolongation, said point being
North 0 000'39" West, along said northerly prolongation, a distance of 24.70 feet from its
southerly terminus; thence South 47 02918" East 31.62 feet; thence South 27 031'27" East
33.96 feet; thence North 89 °59'21" East 4.00 feet; thence North 0 000'39" West 40.00 feet;
thence South 89 °59'21" West 11.23 feet; thence North 47 029'18" West 74.71 feet; thence
North 31 048'52" West 29.76 feet; thence South 89 °59'21" West 4.00 feet; thence South
0 °00'39" East 35.50 feet; thence North 89 °59'21" East 11.58 feet to the northwesterly
Prolongation of the above - described course having a bearing and distance of
South 47 029'18" East 31.62 feet; thence South 47 °29'18" East, along said last mentioned
Prolongation, a distance of 42.62 feet to the point of beginning.
Also excepting therefrom the volume of Grantor's railroad bridge, which lies between
horizontal planes having elevations of 82.15 feet at the bridge seats and 94.50 feet, and
which lies within a strip of land 19.50 feet wide, being 9.75 feet on each side of the
following described centerline:
Beginning at a point in that course in the generally westerly boundary of the above
G ()
EXHIBIT "A"
described PARCEL NO. 2 -5RE having a bearing and distance of North 0 003'52" West
95.24 feet, said last mentioned point being distant North 0 003'52" West 67.67 feet, along
said last mentioned course, from the southerly terminus thereof; thence South
47 029'18" East 120.57 feet to the easterly line of said PARCEL NO.2 -5RE.
The sidelines of the above described 19.50 -foot strip of land shall be prolonged or
shortened so as to terminate in said generally westerly boundary and said easterly line of
PARCEL NO. 2 -5RE.
All the above mentioned elevations are based on a 2 inch bronze benchmark disk
stamped "LACTC BM EL -V 034 LS3258, ELEVATION = 87.42 FEET ", set in the
southwesterly corner of a concrete structure on the southeast side of Douglas Street, in
the westerly corner of Lot 22 of said Tract No. 26557.
Containing: 12,003± square feet.
To be known as DOUGLAS STREET.
PARCEL NO. 2 -5WP (Water pump easement):
That portion of the above - mentioned PARCEL D -1, in the southeast quarter of
above mentioned Section 18, within the following described boundaries:
Beginning at the TRUE POINT OF BEGINNING for the above described PARCEL
NO. 2 -5RE; thence South 0 003'52" East, along the easterly line of said PARCEL NO.
2 -5RE, a distance of 34.89 feet; thence South 47 029'18" East, parallel with the above
mentioned northeasterly boundary of PARCEL D -1, a distance of 56.67 feet; thence North
0 °03'52" West, parallel with said easterly line, a distance of 10.45 feet to a point in a line
Parallel with and 18 feet southwesterly, measured at right angles, from the above
mentioned northeasterly boundary, said last mentioned point being hereby designated as
Point "A "; thence continuing North 0 003'52" West 24.44 feet to a point in said northeasterly
boundary, said last mentioned point being hereby designated as Point "B'; thence
northwesterly, along said northeasterly boundary, to the point of beginning.
Excepting therefrom that portion which lies above a horizontal plane having an
elevation of 94.50 feet and that portion which lies below a horizontal plane having an
elevation of 44.00 feet, said elevations being based on the above mentioned 2 inch bronze
benchmark disk stamped "LACTC BM EL -V 034 LS3258, ELEVATION = 87.42 FEET'.
Containing: 1456+ square feet.
61
EXHIBIT "A"
PARCEL NO. 2 -5DE (Drainage easement):
That portion of the above mentioned PARCEL D -1, in the southeast quarter of the
above mentioned Section 18, within a strip of land 10 feet wide, lying 5 feet on each side of
the following described centerline:
Beginning at Point "A ", designated in above described PARCEL NO.2 -5WP; thence
South 47 029'18" East, along a line parallel with and 18 feet southwesterly, measured at
right angles, from the above mentioned northeasterly boundary, of PARCEL D -1, a distance
of 186.85 feet; thence South 42 030'42" West 77.00 feet to a line parallel with and 5 feet
northeasterly, measured at right angles, from that certain course described as having a
length of 1390.42 feet in the above mentioned southwesterly boundary of PARCEL D -1;
thence South 47 029'18" East, along said last mentioned parallel line, a distance of 904.88
feet to a line parallel with and 5 feet northeasterly, measured at right angles, from that
certain course described as having a length of 531.05 feet in said last mentioned
southwesterly boundary; thence southeasterly, along said last mentioned parallel line, a
distance of 531.18 feet to the northwesterly boundary of that certain parcel of land
described in deed to County of Los Angeles, recorded on February 25, 1964, as Document
No. 4672, in Book D2372, page 35, of the above mentioned Official Records.
The sidelines of the above described 10 -foot strip of land shall be prolonged or
shortened northwesterly so as to terminate in the easterly line of the above described
PARCEL NO. 2 -5WP, and shall be prolonged or shortened southeasterly so as to
terminate in said northwesterly boundary, and shall be prolonged or shortened at the angle
points so as to terminate at their points of intersection.
Excepting therefrom that portion which lies above a horizontal plane having an
elevation of 87.00 feet and that portion which lies below a horizontal plane having an
elevation of 65.00 feet. said elevations being based on the above mentioned 2 inch bronze
benchmark disk stamped "LACTC BM EL -V 034 LS3258, ELEVATION = 87.42 FEET ".
Also excepting therefrom any portions of 7 -foot diameter cylindrical volumes,
encompassing Grantor's eight -sided columns and their cylindrical pile foundations, lying
within the above described 1 040o strip of land, between said horizontal plane having an
elevation of 87.00 feet and said horizontal plane having an elevation of 65.00 feet
Containing: 16,999± square feet.
grD
ti
EXHIBIT "A91
PARCEL NO.2 -5SR (Easement for seismic restraint structure):
That portion of the above - mentioned PARCEL D -1, in the southeast quarter of
above mentioned Section 18, within the following described boundaries:
Beginning at the northerly terminus of the above mentioned course having a bearing
and distance of North 0 003'52" West 95.24 feet in the generally westerly boundary of the
above described PARCEL NO. 2 -5RE; thence South 0 003'52" East, along said last
mentioned course, a distance of 17.04 feet; thence South 89 056'08" West 20.00 feet;
thence North 0 003'52" West 25.00 feet; thence North 89 056'08" East 22.18 feet to said last
mentioned generally westerly boundary; thence southerly and westerly, along said last
mentioned generally westerly boundary, to the point of beginning.
Excepting therefrom that portion which lies above a horizontal plane having an
elevation of 87.12 feet and that portion which lies below a horizontal plane having an
elevation of 33.01 feet, said elevations being based on the above mentioned 2 inch bronze
benchmark disk stamped "LACTC BM EL -V 034 LS3258, ELEVATION = 87.42 FEET".
Also excepting therefrom a 7 -foot diameter cylindrical volume, encompassing
Grantor's eight -sided column and its cylindrical pile foundation, lying within said last
described boundaries, between said horizontal plane having an elevation of 87.12 feet and
said horizontal plane having an elevation of 33.01 feet.
Containing: 518± square feet.
PARCEL NO.2 -5TT (Easement for tie- backs):
That portion of the above - mentioned PARCEL D -1, in the southeast quarter of
above mentioned Section 18, within the following described boundaries:
Beginning at a point in the above mentioned course having a bearing and distance
of North 0 003'52" West 95.24 feet in the generally westerly boundary of the above
described PARCEL NO. 2 -5RE, said point being distant South 0 003'52" East 13.15 feet,
along said last mentioned course, from the northerly terminus thereof; thence continuing
South 0 003'52" East, along said last mentioned course, a distance of 34.50 feet; thence
South 79 000'02" West 35.65 feet; thence North 0 003'52" West 41.26 feet; thence North
89 056'08" East 35.00 feet to the point of beginning.
Excepting therefrom that portion which lies between an inclined plane, the easterly
edge of said last mentioned plane having an elevation of 82 feet and the westerly edge of
said last mentioned plane having an elevation of 72 feet, and an inclined plane, the
63
EXHIBIT "A"
easterly edge of said last mentioned plane having an elevation of 78 feet and the westerly
edge of said last mentioned plane having an elevation of 60 feet, said two last mentioned
planes being bounded by said last described boundaries, said elevations being based on
the above mentioned 2 inch bronze benchmark disk stamped "LACTC BM EL -V 034
LS3258, ELEVATION = 87.42 FEET ".
Also excepting any portion of a 7 -foot diameter cylindrical volume, encompassing
Grantor's eight -sided column and its cylindrical pile foundation, lying within said last
described boundaries.
Containing: 1326+ square feet.
PARCEL NO.2 -5TT.1 (Easement for tie- backs):
That portion of the above - mentioned PARCEL D -1, in the southeast quarter of
above mentioned Section 18, within the following described boundaries:
Beginning at a point in the easterly line of the above described PARCEL No. 2 -5RE,
said point being distant South 0 003'52" East 47.93 feet, along said easterly line, from the
northeasterly corner of said PARCEL NO.2 -5RE; thence continuing South 0 °03'52" East,
along said easterly line, a distance of 34.00 feet; thence North 89 °56'08" East 35.00 feet;
thence North 0 003'52" West 34.00 feet; thence South 89 056'08' West 35.00 feet to the
point of beginning.
Excepting therefrom that portion which lies between an inclined plane, the westerly
edge of said last mentioned plane having an elevation of 82 feet and the easterly edge of
said last mentioned plane having an elevation of 72 feet, and an inclined plane, the
westerly edge of said last mentioned plane having an elevation of 78 feet and the easterly
edge of said last mentioned plane having an elevation of 65 feet, said two last mentioned
planes being bounded by said last described boundaries, said elevations being based on
the above mentioned 2 inch bronze benchmark disk stamped "LACTC BM EL -V 034
LS3258, ELEVATION = 87.42 FEET".
Containing: 1190+ square feet.
APPROVED AS TO DESCRIPTION
EXP.
*� NO. 7599 /4 �� 11 By
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64
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65
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to approve a Covenant Restricting Use of Property for
equipment purposes with respect to the expansion of floor area at a building at 2260 East El
Segundo Boulevard as previously permitted by the Planning Commission.
RECOMMENDED COUNCIL ACTION:
1. Authorize City Manager to execute a Covenant Restricting Use of Property; and /or,
2. Alternatively discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
On July 27, 2000, the Planning Commission adopted Resolution No. 2487 approving
Environmental Assessment No. 522 for a 42,108 square -foot expansion of a 92,109 square -
foot building at 2260 East El Segundo Boulevard in the Light Industrial (M -1) Zone. The
building was intended to be used by AboveNet, Inc. as an internet data center. The Planning
Commission conditioned the project to require that 19,497 square feet of the expansion, which
would be used as equipment and mechanical rooms that are not counted as floor area, could
not be converted to useable floor area in the future because this amount of expansion would
have exceeded the maximum allowable floor area ratio (FAR) on the property (0.6:1). The
intent of this condition was to ensure that no future tenant would exceed the FAR by
converting the equipment rooms to usable floor area. The Planning Commission required that
a covenant restricting the use of this 19,497 square feet to unusable floor area be recorded
before the issuance of a Certificate of Occupancy.
(Continued on next page...)
ATTACHED SUPPORTING DOCUMENTS:
1. Covenant Restricting Use of Property.
2. Planning Commission Resolution No. 2487
FISCAL IMPACT:
Operating Budget: N/A
Amount Requested: N/A
Account Number: N/A
Project Phase: N/A
BY:
Mary
Yes X No
of Planninq and B
.:y
Fi t'
STAFF REPORT: December 7, 2004
Page 2
AboveNet, Inc. did not complete the construction of the improvements and no Certificate of
Occupancy was ever requested for the building expansion due to the downturn in the internet
economy in 2001. Kilroy Realty, the property owner, is now completing the improvements and
requests that the Covenant Restricting Use of the Property be approved as part of the process
to obtain a Certificate of Occupancy so the building can be available for any potential tenants.
The draft Covenant was reviewed and approved as to form by the City Attorney's office. Staff
recommends that the Council authorize the City Manager to execute the Covenant on behalf
of the City Council.
P:\Planning & Building Safety\PROJECTS\500- 525\EA- 522 \EA -522. agreements.ais.doc
�r
RECORDING REQUESTED BY
Kilroy Realty Finance Partnership, LP
12200 W Olympic Blvd.
Los Angeles, CA 90064
Attention: Legal Department
AND WHEN RECORDED MAIL TO:
CITY CLERK
CITY OF EL SEGUNDO
350 Main Street
El Segundo, California 90245
{Space Above For Recorder's Use)
COVENANT RESTRICTING USE OF PROPERTY
This Covenant Restricting Use of Property ( "Covenant ") is entered into this _ day of
October, 2004 by and between the City of El Segundo, a general law city and municipal
corporation ( "City ") and Kilroy Realty Finance Partnership, L.P., a Delaware limited partnership
(°Owner ") with respect to that certain real property commonly known as 2260 East EI Segundo
Boulevard, El Segundo, California and which has the legal description described in Exhibit A
attached hereto ('Property ").
The parties enter into this Covenant with reference to the following facts and objectives
t . In connection with a lease entered into between Owner and AboveNet
Communications, Inc. (which lease has since been terminated), the Owner filed an application
with the City, pursuant to City's General Plan ( "ESGP ") Land Use Element Light Industrial
Designation and El Segundo Municipal Code ( "ESMC ") Section 20.40.020, for, and received, a
permit (the 'Permit ") for the construction and use of an additional building on the Property (the
"Expansion Building ");
2. ESMC Section 20.40.060 F. requires that the allowable floor area ratio ('FAR ")
for the Property does not exceed 0.6:1;
3. The Property (a) currently has a lot area of 191,200 square feet, pursuant to that
Area Summary prepared by Skidmore, Owings, & Merrill, LLP dated April 19, 2000, and (b)
originally had one (1) structure erected on it which caused the Property to have a total of 92,109
square feet of total floor area and 74,410 square feet of net floor area ('NFA" as defined by
ESMC section 20.08.420) (the "Existing Building ");
4• The Owner has constructed the Expansion Building consisting of 42,108 of total
floor area and 38,997 square feet of net floor area on the Property in accordance with the Permit;
575722.0 tnvta
888883 - 740/7- 8 -04Adt
5. The total square feet of floor area of both the Existing Building and the Expansion
Building is 134,217 ( "Total Final Space ") and the combined net square feet of the Existing
Building and the Expansion Building is 113,407 ( "Total Net Square Feet');
6. Pursuant to the FAR, the allowable net floor area of the Property is 114,720 net
square feet;
7. Resolution No. 2487 of the City's Planning Commission requires the Owner to
record an agreement acceptable to the City Attorney prohibiting the conversion of 19,497 square
feet in the Total Final Space from equipment or storage rooms to usable floor area before the
City will issue a certificate of occupancy for the Expansion Building;
8. The Owner and the City recognize that the intent of this Covenant is to allow for
the construction of the Expansion Building on the Property while ensuring that the structures on
the Property do not exceed the FAR for the Property.
NOW THEREFORE the parties do hereby agree, covenant and warrant as follows:
I . RESTRICTIONS ON USE OF PROPERTY. The Owner must designate and
maintain 19,497 square feet of the Total Final Space exclusively for use as equipment or storage
rooms ("Minimum Equipment Area "). All other uses of the Minimum Equipment Area is
prohibited unless (a) the Owner removes, or causes to be removed, the Expansion Building and
restores that portion of the Property on which the Expansion Building is located to substantially
the same condition as existed before constructing the Expansion Building, ordinary wear and tear
excepted, (b) the City specifically allows such other uses, or (c) such other uses become
allowable pursuant to changes in applicable City codes. Under the circumstances in (a), (b) or
(c), the Owner will not be further bound by this Covenant (i.e., the Minimum Equipment Area
can be used without restriction), and the Owner and the City will reasonably cooperate to execute
documents needed to terminate this Covenant.
2, REDUCTION IN MINIMUM USE AREA. The actual Minimum Equipment
Area (i.e., 19,497) can be reduced in the event (a) the Building is altered (in compliance with all
City requirements) such that the overall Total Final Space is reduced or (b) the City regulations
regarding FAR are modified such that more of the Total Final Space may be used for other uses.
3. ALLOWABLE NET FLOOR AREA. The Owner is permitted to construct
additional space consisting of up to 1,313 net square feet on the Property without violating or
exceeding the FAR (i.e., allowable net floor area 1 14,720 minus Total Net Square Feet 113,407).
4. REMEDIES. If the Owner uses the Minimum Equipment Area in violation of
paragraph No. 1 above, in addition to all other remedies available to the City at law or equity, the
City is entitled to specific performance of this Covenant, including without limitation injunctive
relief to prevent the use of the Property in violation of this Covenant. The Owner acknowledges
that monetary damages would not remedy all of the harms that would be incurred by the City in
the event of such a violation.
575722,01A,I,
888888-740/7-8-04/"]
_2_
5. FREIGHT FORWARDING. Nothing in this Covenant restricts or impairs the
Owner's right to use the Property for freight forwarding purposes pursuant to Resolution No.
2327, adopted August 13, 1992 and Conditional Use Permit 92 -95.
6. BINDING ON SUCCESSORS AND ASSIGNS. This covenant runs with the
Property and is for the benefit of, and be binding on, the successors in interest, assigns, and heirs
of the parties.
7. ENTIRE AGREEMENT. This Covenant is the complete and final expression of
the parties and supersedes all prior written and/or oral agreements or understandings of the
Parties with respect to the subject matter hereof.
IN WITNESS WHEREOF, this Covenant has been executed as of the day and year first
written above.
APPROVED AS TO FORM:
City Attorney
CITY OF EL SEGUNDO
By:
Its:
KILROY REALTY FINANCE PARTNERSHIP, L.P.,
a Delaware limited partnership
By: KILROY REALTY FINANCE, INC.,
General P%gner
0
REY C. HAWKEN
PRESIDENT
LIM
Title: R. VICE PRESIDENT
tY ri
575722.01/11a
888888 - 740/7- 8- 04/kII h
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I o
ACKNOWLEDGMENT
STATE OF CALIFORNIA )
)SS
COUNTY OF LOS ANGELES)
On October 18 2004 , before me, Judy LaCoss
appeared Jeffrey C a Notary Public, personally
C. Hawken and John T F11rr;
, personally known to me (�
to be the person(s) whose name(s) is /are subscribed to the
within instrument and acknowledged to me that he/she /they executed the same in his4w /their
authorized capacity(ies), and that by IdsAier /their signature(s) on the instrument, the person(s), or
the entity(ies) upon behalf of which the person(s) acted, executed the instrument.
' and official seal.
J i JUDY LACOSS
COMM. #132998S
W *My Nry PubOc.Callfomla m cn
ota
LOS ANGELES COUNTY
Comm. Exp. Nov 13, 2005
[Seal]
LI
i o ary Public
r
`7 1
EXHIBIT A
LEGAL DESCRIPTION
PARCEL A:
PARCEL I IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA, AS SHOWN ON PARCEL MAP NO. 14364, FILED IN BOOK 143 PAGES 23 & 24,
OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPT ALL OIL, GAS, ASPHALTUM AND OTHER HYDROCARBON AND OTHER
MINERALS, WHETHER SIMILAR TO HEREIN SPECIFIED OR NOT, WITHIN OR THAT MAY BE
PRODUCED FROM SAID LAND; PROVIDED HOWEVER, THAT THE SURFACE OF SAID LAND
SHALL NEVER BE USED FOR THE EXPLORATION, DEVELOPMENT, EXTRACTION,
REMOVAL OR STORAGE OF SAID OIL, GAS, ASPHALTUM AND OTHER HYDROCARBON
AND OTHER MINERALS AND FURTHER PROVIDED THAT NO INSTALLATION
CONSTRUCTED THEREON SHALL BE DISTURBED IN ANY MANNER IN EXTRACTING SAID
RESERVED MINERALS, AS RESERVED IN THE DEED FROM STANDARD OIL COMPANY OF
CALIFORNIA, RECORDED DECEMBER 20, 1960, AS INSTRUMENT NO. 1622 IN BOOK D -1069,
PAGE 898, OFFICIAL RECORDS.
PARCEL B:
THE NON - EXCLUSIVE, PERPETUAL RIGHTS AND EASEMENTS APPURTENANT TO AND FOR
THE BENEFIT OF PARCEL I CREATED AND ESTABLISHED BY THE DECLARATION DATED
(THE "DECLARATION') DATED JUNE 20, 1996, EXECUTED BY KILROY- FREEHOLD
INDUSTRIAL DEVELOPMENT ORGANIZATION, A CALIFORNIA GENERAL PARTNERSHIP
( "K - FIDO ") AND FILED FOR RECORD JUNE 21, 1996 AS INSTRUMENT NO.96- 986628, IN THE
OFFICE OF THE COUNTY RECORDER OF LOS ANGELES COUNTY, INCLUDING, WITHOUT
LIMITATION:
(A) THE NON - EXCLUSIVE, PERPETUAL RIGHTS AND EASEMENTS TO UTILIZE
(INCLUDING ANY AND ALL PARKING PERMITS, PARKING CARS OR OTHER ITEMS
REQUIRED TO EVIDENCE THE SAME) SIXTY -EIGHT (68) PARKING SPACES (THE "PARKING
STRUCTURE SPACES ") LOCATED WITHIN THE PARKING STRUCTURE ( "PARKING
STRUCTURE') SITUATED UPON THE FOLLOWING DESCRIBED REAL PROPERTY:
PARCEL 2, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA, AS SHOWN ON PARCEL MAP NO. 14364, FILED IN BOOK 143 PAGES 23 AND 24
OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF LOS ANGELES
COUNTY,
TO PARK MOTOR VEHICLES;
(B) THE NON - EXCLUSIVE PFRI'F.TUAL RIGHTS AND EASEMENTS TO UTIL[ZF. ANY OR
ALL OF THE PARKING STRUCTURE (INCLUDING, WITHOUT LIMITATION, ALL ELEVATORS
THEREIN) REASONABLY NECESSARY FOR VEHICULAR AND PEDESTRIAN INGRESS TO
AND E( SS FROM THE PARKING STRUCTURE SPA( CES; AND
'7
EXHIBIT A
LEGAL DESCRIPTION (CONTINUED)
(C) THE NON - EXCLUSIVE, PERPETUAL RIGHTS AND EASEMENTS TO UTILIZE ALL OF
THE COMMON AREAS (AS DEFINED IN THE DECLARATION) AS EXIST FROM TIME TO
TIME UPON:
PARCEL 2 OR PARCEL 3, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE
OF CALIFORNIA, AS SHOWN ON PARCEL MAP NO, 14364, FILED IN BOOK 143 PAGES 23 AND
24 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF LOS ANGELES
COUNTY;
FOR ALL PURPOSES ASSOCIATED WITH SUCH COMMON AREAS, SPECIFICALLY
INCLUDING, WITHOUT LIMITATION, ACCESS, INGRESS AND EGRESS FOR VEHICLES AND
PEDESTRIANS OVER THOSE PORTION OF PARCELS 2 AND 3 OF PARCEL MAP NO. 14364, IN
THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER
MAP FILED IN BOOK 143 PAGES 23 AND 24 OF PARCEL MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF LOS ANGELES COUNTY, DESCRIBED AS FOLLOWS:
(1) A STRIP OF LAND 24.00 FEET WIDE, LYING 12.00 FEET ON EACH SIDE OF THE
FOLLOWING DESCRIBED CENTERLINE:
BEGINNING AT THE NORTHEAST CORNER OF SAID PARCEL 2; THENCE ALONG THE
NORTH LINE OF SAID PARCEL AND ITS WESTERLY PROLONGATION NORTH 89 DEGREES
56 MINUTES 08 SECONDS WEST 328.00 FEET.
(2) A STRIP OF LAND 24.00 FEET WIDE, LYING 12.00 FEET ON EACH SIDE OF THE
FOLLOWING DESCRIBED CENTERLINE:
BEGINNING AT THE MOST WESTERLY CORNER OF SAID PARCEL 3; THENCE ALONG THE
NORTH LINE OF SAID PARCEL 3, SOUTH 48 DEGREES 48 MINUTES 41 SECONDS EAST 73.00
FEET AND SOUTH 89 DEGREES 56 MINUTES 08 SECONDS WEST 316.60 FEET; THENCE
SOUTH 00 DEGREES 03 MINUTES 07 SECONDS WEST 93.00 FEET.
(3) A STRIP OF LAND 24.00 FEET WIDE, LYING 12.00 FEET ON EACH SIDE OF THE
FOLLOWING DESCRIBED CENTERLINE:
BEGINNING AT THE MOST WESTERLY CORNER OF SAID PARCEL 3; THENCE ALONG THE
SOUTHWESTERLY AND SOUTHERLY LINES SAID PARCEL 3, SOUTH 48 DEGREES 48
MINUTES 41 SECONDS EAT 73.00 FEET AND SOUTH 89 DEGREES 55 MINUTES 25 SECONDS
EAST 112.00 FEET TO POINT " A " FOR PURPOSES OF THIS DESCRIPTION; THENCE ALONG
THE WEST LINE OF SAID PARCEL 3 AND ITS SOUTHERLY PROLONGATION SOUTH 00
DEGREES 03 MINUTES s2 SECONDS WEST 369.92 FEET TO AN INTERSECTION WITH THE
WESTERLY PIROLONGA "1ION OF THE NORTH LINE OF PARCEL 2 OF SAID PARCEL MAP
HA VING A BEARING AND DISTANCE OF NORTH 89 DEGIZEES 56 MINUTES 08 SECONDS
WEST 147.02 FFIFF
'7'
EXHIBIT A
LEGAL DESCRIPTION (CONTINUED)
EXCEPT THE SOUTHERLY 12.00 FEET.
THE SIDE LINES OF SAID STRIP SHALL BE PROLONGED OR SHORTENED TO TERMINATE
NORTHERLY IN THE NORTHERLY LINE OF SAID PARCEL 3 AND TO MEET AT ANGLE
POINTS.
(3) A STRIP OF LAND 16.00 FEET WIPE, LYING 8.00 FEET ON EACH SIDE OF THE
FOLLOWING DESCRIBED CENTERLINE:
BEGINNING AT HEREINABOVE DESCRIBED POINT " A "; THENCE NORTH 00 DEGREES 03
MINUTES 52 SECONDS EAST 6.00 FEET ALONG THE NORTHERLY PROLONGATION OF THE
WEST LINE OF SAID PARCEL 3; THENCE LEAVING SAID LINE NORTH 31 DEGREES 56
MINUTES 39 SECONDS EAST 49.45 FEET TO THE NORTHERLY LINE OF SAID PARCEL 3.
THE SIDELINES OF SAID STRIP SHALL BE PROLONGED OR SHORTENED SO AS TO
TERMINATE NORTHERLY IN SAID NORTHERLY LINE OF PARCEL 3 AND TO MEET AT
ANGLE POINTS.
741
Y
RESOLUTION NO. 2487
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
EL SEGUNDO, CALIFORNIA, APPROVING A MITIGATED NEGATIVE
DECLARATION OF ENVIRONMENTAL IMPACTS FOR
ENVIRONMENTAL ASSESSMENT EA No. 522 FOR AN EXPANSION
OF AN EXISTING BUILDING AT 2260 EAST EL SEGUNDO
BOULEVARD. PETITIONED BY: SKIDMORE, OWINGS, 8, MERRILL
(FOR ABOVENET, INC.).
WHEREAS, an application has been received from Skidmore, Owings, & Merrill (for AboveNet,
Inc.) which requests approval to construct a 42,108 square foot expansion of an existing 92,109 square
foot commercial /industrial building at 2260 East El Segundo Boulevard in the Light Industrial (M -1) Zone;
and,
WHEREAS, an Initial Study was prepared pursuant to the requirements of the California
Environmental Quality Act ( "CEQA ") Cal. Public Resources Code Section 21000 et se q. The Initial Study
demonstrated that the project would not cause any significant environmental impacts. Accordingly, a
Mitigated Negative Declaration ( "MND ") was prepared and circulated for public review and comment
between July 6 and July 26, 2000; and,
WHEREAS, the Planning Commission has reviewed the application and supporting evidence with
the authority and criteria contained in the California Environmental Quality Act, State CEQA Guidelines
and the City of El Segundo Guidelines for the Implementation of the California Environmental Quality Act
(Resolution 3805); and,
WHEREAS, at the duly scheduled meeting of the Planning Commission of the City of El Segundo
on July 27, 2000, a duly advertised public hearing was held on this matter in the Council Chamber of the
City Hall, 350 Main Street; and,
WHEREAS, opportunity was given to all persons present to speak for or against the findings of
Environmental Assessment No. EA -522; and,
WHEREAS, at said hearing the following facts were established:
The proposed project is for a proposed 42,108 square foot expansion of an existing 92,109
square foot commercial /industrial building at 2260 East El Segundo Boulevard. The existing
building is currently being remodeled to be used as an internet data center facility by AboveNet,
Inc. (Phase 1). The expansion (Phase II) would also be used as an internet data center facility and
would be constructed on an existing surface parking lot on the east side of the existing building.
2 The General Plan land use designation for the site is Light Industrial and the zoning is Light
Industrial (M -1). The General Plan designation and zone allow internet data centers as a use
which is primarily a warehouse use.
3. The project site is currently developed with an existing one story industrial type building. The
is used as as h d of a care center, athreetstory 60,000e square 0foot office building, andda parking
structure.
7;;
4. The conversion of the existing building (Phase 1) is not the subject of this application, only the
expansion (Phase II), since Phase I consists of a tenant improvement for a permitted use. Since
the proposed expansion exceeds the 15,000 square foot threshold size for an exemption from
environmental review, the expansion must be reviewed and approved by the Planning
Commission.
5 The project involves the construction of a two story addition on the east side of the existing
building. The proposed addition would be located on an existing surface parking lot. A total of 158
parking spaces (68 on -site and 90 in adjacent off -site parking structure) would be provided for the
whole proposed facility. Three required loading spaces would be located within the existing
building.
6. The proposed project would add 42,108 gross square feet (38,997 net square feet) as Phase II
of a project to convert the existing building from an office /industrial building into an internet data
center facility. The existing building is 92,109 gross square feet (74,410 net square feet). The total
building size will be 134,217 gross square feet and 113,407 net square feet. As part of
AboveNet's tenant improvement plans for the existing building (Phase 1), which have already
begun construction, a 21,334 square foot mezzanine was demolished. The proposed expansion
would increase the FAR on the property up to 0.593:1. A maximum of 0.6:1 (114,720 square feet)
is permitted in the M -1 Zone.
NOW, THEREFORE, BE IT RESOLVED that after cons1dering the above facts and study of proposed
Environmental Assessment EA No. 522, the Planning Commission finds as follows:
ENVIRONMENTAL ASSESSMENT
1. That the City of El Segundo has prepared an Initial Study; and, an accompanying Mitigated
Negative Declaration was prepared demonstrating that the Project would not cause any significant
environmental impacts.
2. That when considering the whole record, there is no evidence that the project will have the
potential for an adverse effect on wildlife resources or the habitat on which the wildlife depends,
because the project involves the in -fill development on an existing parking lot in an urban setting.
3. That the Planning Commission hereby authorizes the Director of Community, Economic and
Development Services to file with the appropriate agencies a Certificate of Fee Exemption and
De Minimis finding pursuant to California Assembly Bill (AB) No. 3158 and the California Code
of Regulations. Within twenty -four hours of this approval, the applicant shall submit to the City
of El Segundo a fee of $25.00 required by the County of Los Angeles for the filing of this
certificate along with the required Notice of Determination. As approved for in AB No. 3158, the
statutory requirements of CEQA will not be met and no vesting shall occur until this condition is
met and the required notices and fees are filed with the County.
GENERAL PLAN AND ZONING CONSISTENCY
1. The proposed expansion is consistent with the General Plan in that the project is in conformance
with the Goals, Objectives and Policies of the General Plan. Specifically, Economic Development
Element Goal ED1, Objective ED1 -2, Land Use Element Goal LU4, Policy LU4 -3.2, Objective
LU4 -4, and Objective LU5 -1.2 relate to the proposed project in that they address the importance
2
'7 t,
of maintaining economic development as one of the community's top priorities, as well as
maintaining public sector support for the business communities, and encouraging high quality and
mixed -use developments which maximize economic benefit, reduce traffic impact and encourage
pedestrian environments. The use of the building would continue and expand the mixed -use
nature of the three buildings in the original precise plan which is a "mixed -use developments
within one - quarter mile of the Green Line Stations" encouraged by Policy 4 -3.2. The project will
add to the diversification of the economic base in the City as a catalyst for other internet related
companies to choose El Segundo.
NOW, THEREFORE, BE IT RESOLVED that the Planning Commission hereby adopts a Mitigated
Negative Declaration of Environmental Impacts and approves Environmental Assessment No. EA -522,
subject to the following conditions:
Prior to issuance of a building permit, the applicant shall submit plans, which indicate that the
project is in substantial conformance with plans and conditions approved and on file with the
Department of Community, Economic and Development Services. Any subsequent modification
to the project as approved shall be referred to the Director of Community, Economic and
Development Services for a determination regarding the need for Planning Commission review
of the proposed modification.
2. Prior to the issuance of a Certificate of Occupancy, the applicant shall record a covenant or other
agreement acceptable to the City Attorney to prohibit the conversion of 19,497 square feet
(134,217 gross floor area minus 114,720 maxiypum net square feet allowed) of the existing
building and proposed expansion from equipment rooms to usable floor area in order to ensure
the building will not be converted to a use that would exceed the maximum permitted floor area
ratio.
3. Prior to issuance of a Certificate of Occupancy, the applicant shall pay a one -time Library Services
Mitigation Fee of $0.03 per gross square foot of building floor area of the proposed expansion.
4. Prior to issuance of a Certificate of Occupancy, the applicant shall pay a one -time Fire Services
Mitigation Fee of $0.14 per gross square foot of building floor area of the proposed expansion.
5. Prior to issuance of a Certificate of Occupancy, the applicant shall pay a one -time Police Services
Mitigation Fee of $0.11 per gross square foot of building floor area of the proposed expansion.
6. Prior to issuance of a building permit, the applicant shall submit a methane gas study for review
and approval by the Director of Community, Economic and Development Services.
Recommendations from the study shall be incorporated into the building design and installed prior
to the issuance of a Certificate of Occupancy.
7. Prior to issuance of a building permit, the applicant shall submit a Fire /Life Safety Plan to the Fire
Chief which includes, but is not limited to, the following:
A. A fire access roadway;
B. Relocation of one existing on -site fire hydrant;
C. An additional on -site fire hydrant a minimum distance of 40 feet from the building;
D. An automatic fire sprinkler system;
E. Occupancy classification of the building;
F. Provision of a life safety alarm per NFPA 101 requirements;
G. Provision of at least one exist stairwell that extends through the roof; and,
H. No storage of hazardous materials or flammable liquids shall be allowed without Fire
Department approval.
All Fire /Life Safety Plan requirements must be installed and operational, and any required
easements or documents recorded, prior to issuance of a Certificate of Occupancy.
8. The applicant shall pay the City Attorney's fees and costs for preparing or reviewing any fire lane
access easements, or any such easements or agreements required.
g. A Landscaping and Irrigation Plan shall be submitted by the applicant to the Director of
Community, Economic and Development Services, Director of Recreation and Parks, and Police
Chief prior to approval of the building plans. Any new landscaped areas shall be provided with a
permanent automatic watering or irrigation system and shall be permanently maintained in a neat
and clean manner. The applicant shall incorporate provisions for the use of reclaimed water in
the Landscaping and Irrigation Plan. The Plan shall be reviewed and approved by the Director of
Community, Economic and Development Services, Director of Recreation and Parks, and Police
Chief, and installed per the approved plans by the applicant prior to the issuance of a Certificate
Of Occupancy.
10. Prior to the issuance of a Certificate of Occupancy, the applicant shall submit a Master Sign Plan
to ensure compatibility with the surrounding area, as well as to ensure that signs do not impede
traffic or pedestrian safety. The Master Sign Plan'shall be subject to the approval of the Director
Of Community, Economic and Development Services and Police Chief and all signs shall be
installed per the approved plan prior to issuance of a Certificate of Occupancy.
11. During construction, the entire project site shall be enclosed by a six -foot high chain link fence.
Gates for site fencing shall not open over sidewalk/public right -of -way. A fencing plan shall be
submitted by the applicant and reviewed and approved by the Director of Community, Economic
and Development Services prior to installation.
12. All work within the City public right -of -way shall be in accordance with the latest edition of the
Standard Specifications for Public Works Construction and City of El Segundo Standard
Specifications. No work shall be performed in the public right -of -way without first obtaining a
Public Works permit.
13. Prior to approval of the building plans, plans shall indicate that all proposed utilities shall be placed
underground to the satisfaction of the City Engineer. The applicant shall assume the costs for the
relocation of all utilities, including but not limited to, light poles, electrical vaults, and fire hydrants
which are affected by the proposed project.
14. Encroachment permits must be obtained from the Engineering Division of the Public Works
Department for demolition haul -off. Permits must be obtained at the same time the permit for
demolition is issued. An encroachment permit for grading is also required when import or export
of dirt exceeds fifty cubic yards. Demolition and grading may be listed on one encroachment
permit.
15. Prior to approval of the building plans, plans shall show the location and design of all proposed
trash enclosures to the satisfaction of the Director of Community, Economic and Development
Services and the Police Chief. Plans shall also indicate that the trash area will incorporate
4
'7 8
adequate space for the collection of recyclable materials.
16. If new sewer laterals are required and constructed in the public right -of -wa be
minimum of six inches inside diameter. Material shall be "vitreous cla y, they shall Each lateral sh sh a
have a six -inch clean -out brought to grade at the property line and secure) ca all
box shall be placed around the clean -out for protection. The box shall have a cover emblazoned
with the word "sewer ". If in a traffic area, cover shall be traffic approved. All planned sewer
connections shall be checked for elevation prior to starting construction. Existing sewer laterals
shall be plugged at the sewer mainline and capped at the property line. Existin
may be reused if approved by the Director of Public Works. g six -inch wyes
17. No material storage is allowed in the public right -of -way except by permit issued by the
Engineering Division of the Public Works Department. If material storage is allowed in the public
right -of -way it shall be confined to parkway areas and street parking areas, as long as safe and
adequate pedestrian and vehicular passage is maintained at all times. Storage beyond these
areas in the public right -of -way requires prior approval of the Public Works Department and shall
be limited to a maximum period of 24 hours.
18. Prior to Certificate of Occupancy, new curbs, sidewalk, driveway approaches, wheelchair ramps
and A.C. pavement, including alleys, shall be constructed /reconstructed as required by the
Director of Public Works. Existing driveways and other concrete work not to be incorporated into
the construction shall be removed and replaced with standard curb and sidewalk.
19. Should any previously unrecorded archeological or cultural resources be encountered during
construction of the project, all work will be stopped and the Department of Community, Economic
and Development Services will be notified immediately. At the applicant's expense a qualified
archeologist will be consulted to determine the potential significance of the find, and his findings
shall be submitted to the Director of Community, Economic and Development Services prior to
the commencement of work.
20. The applicant shall submit the appropriate documentation to show conformance with or exemption
from the State Water Quality Control Board's National Pollution Discharge Elimination System
(NPDES) Permit for construction related stormwater run -off to the Director of Public Works prior
to the approval of the building plans.
21. During construction dust control measures shall be required in accordance with the City's Dust
Control Ordinance. Grading will be discontinued during first -stage smog alerts and suspended
during periods of high wind (i.e. over 15 miles per hour). All hauling trucks shall have loads
covered or wetted and loaded below the sideboards to minimize dust.
22• The applicant shall indemnify, defend, protect, and hold harmless the City, its elected and
appointed officials, officers, agents and employees from and against any and all claims, actions,
causes of action, proceedings or suits which challenge or attack the validity of the City's approval
of Environmental Assessment EA No. 522.
BE IT FURTHER RESOLVED that according to the El Segundo Municipal Code, a copy of this Resolution
shall be mailed to the applicant at the address shown on the application and to any other person
requesting a copy of same. The decision of the Planning Commission as set forth in this Resolution shall
become final and effective ten calendar days after the date of the Planning Commission action, unless
an appeal in writing is filed with the City Council.
5
7.3
PASSED, APPROVED AND ADOPTED this 27th day of July, 2000.
fL.- tIJ:Director -
ame M. Hansen of {Com unity, Econand of
n1Ices; and, Secretary of the Planning
Commission of the City of El Segundo,
California
VOTES -
B. Crowley
- Aye
C. Frick -
Aye
P. Mahler -
Aye
G. Rickard -
Aye
M. Kretzmer -
Aye
I
Brian Crowley, hairman
of the Planning Commission
of the City of El Segundo, California
PAPlanning & Building Safety\ PROJECTS \500 - 525 \EA - 522 \ea- 522.reso.doc
8()
i
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Consent
AGENDA DESCRIPTION:
Consideration and possible action regarding the waiver of fees for city services associated with
the Candy Cane Lane Holiday Program, located 1200 E. Acacia Street. Fiscal Impact: $500.
RECOMMENDED COUNCIL ACTION:
1) Waive fees for city services associated with the Candy Cane Lane Program.
2) Alternatively discuss and take other action on related to this item.
BACKGROUND & DISCUSSION:
The Candy Cane Program has been a long standing, neighborhood program which has
become a favorite holiday tradition in El Segundo. This program is planned to take place every
evening from December 11 — 23, 2003. The program is facilitated by the residents on the
1200 block of East Acacia Ave in El Segundo, who welcome everyone to come and share in
the festivities and charm of the holiday season.
The Recreation and Parks Director has the authority to issue the permit for the events, but the
fee waiver request must be approved by City Council. This program been held in El Segundo
for years with this request being similar to those of years past with fees being waived.
The city services that are being requested are the drop off and use of street barricades and 6
delineators for two streets, "snow" /white batting material for the end of the block, police and /or
cadets and RSVP's for traffic control between 6:30 p.m. & 7:30 p.m. on Dec. 11, a letter from
the City Manger's office to Edison requesting that the streetlights are turned off at the 1200
block of East Acacia from Dec. 11 — Dec.23, and a special request for Santa to arrive on the
City's Fire truck on Saturday, December 11 at 7:00 p.m.
ATTACHED SUPPORTING DOCUMENTS:
Letters of Request from the
FISCAL IMPACT.
of the
Cane Lane
Operating Budget:
Amount Requested: $500
Account Number: 001 -400- 5201 -5204
Project Phase: NA
Appropriation Required: _Yes Budgeted in Parks /RSVP's for Traffic No
ORIGINATED: DATE:
5tacia Mancini, Director of Recreation and
REVIEWED BY:
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3�r
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EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding award of a three year contract to TruGreen
LandCare for the city's landscape maintenance services effective January 1, 2005.
(Fiscal Impact $158,340)
RECOMMENDED COUNCIL ACTION:
Recommendation: (1) Award contract to TruGreen LandCare in the amount of $158,340;
(2) Authorize the City Manager to execute an agreement for services subject to approval by
the City Attorney; (3) Alternatively, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
This contract provides gang mowing, edging, litter removal, pruning, irrigation repair, and other
related landscape maintenance services at Recreation Park, Imperial Strip, Dog Park, Hilltop
Park, Washington Strip, Sepulveda Median and other various park facilities. On November 9,
2004, three vendor provided responses for Landscape Maintenance Services RFP No. #04 -09:
Venco Western, Inc.; Valley Crest; and TruGreen LandCare.
Staff recommends awarding the contract to TruGreen Landcare. The evaluation criteria used
to select the contractor included: (1) reference checks; (2) experience, particularly with
municipalities; and (3) proposed service levels at each location. TruGreen LandCare had the
best overall references for local neighboring cities that they service; City of Manhattan Beach,
City of Santa Monica and City of Beverly Hills.
ATTACHED SUPPORTING DOCUMENTS:
Bid responses
FISCAL IMPACT: $158,340
Operating Budget: $271,000
Amount Requested: $158,340
Account Number: 001 - 400 -5102 -6206
Project Phase: Award Contract
Appropriation Required: _Yes x No
ORIGINATED:
q, DATE:
Stacia Mancini, Recreation and Parks Dirartnr
'ED BY:
Strenn,
10
8,�
11/18/2004 LANDSCAPE
MAINTENANCE SERVICES
RFP #04 -09
COSTS SUMMARY
tsolded = Lowest Proposed Cost
Prepared by J. Richard Hogate
Risk Manager /Purchasing Agent
8'
0
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding award of three year contract to Consolidated
Disposal Service for the City's green waste hauling and recycling services. (Fiscal Impact:
$15,500.00).
RECOMMENDED COUNCIL ACTION:
Recommendation — (1) Award contract to Consolidated Disposal Service in the amount of
$15,500.00; (2) Authorize the City Manager to execute the contract on behalf of the City; and
(3) Alternatively discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
Each year, the City generates approximately 500 tons of green waste from tree trimming and
green waste dropped off by residents. The contract includes the on -call service of a forty (40)
cubic yard high roll -off bin for green waste with no minimum requirements. Furthermore, 100%
of the recyclable green waste material must be recycled.
On October 26, 2004, the City Clerk received and opened four (4) bids. Staff recommends
award of contract to the lowest bidder, Consolidated Disposal Service.
ATTACHED SUPPORTING DOCUMENTS:
Bid results
FISCAL IMPACT:
Operating Budget:
$15,500.00
Amount Requested:
$15,500.00
Account Number:
001- 400 - 4201 -6209
Project Phase:
Award of Contract
Appropriation Required: No
11
84
Green Waste Hauling and Recycling Services Bid Results
RFP No. 04 -08
Cost Summary
Bidder
Consolidated
S & H Disposal
A & A Waste
the firm's facility, what would be the
Disposal
BFI
Company
Rolloff
Haul /Pull charge for (1) 40 -cubic yard
$25
Yes
$26
Yes
N/A
Yes
$40
roll -off bin er haul
$85
$85
$150
$325
Rec clin char a /ton
$25
$26
$23
Avera e 5 hauls er month
$425
$425
$750
incl.
$1,625
Average 33 tons/ month
$825
$858
$759
Monthly Proposed Cnsts
RA �
incl
1p 1,&�V 401,zus $1,509 $1,625
If the City chooses to haul materials to
the firm's facility, what would be the
rice per ton?
Would weight tickets be provided?
$25
Yes
$26
Yes
N/A
Yes
$40
Yes
85,
EL SEGUNDO CITY COUNCIL
AGENDA ITEM STATEMENT
AGENDA DESCRIPTION:
METING DATE: December 7, 2004
AGENDAHEADING: Consent Agenda
Consideration and possible action regarding termination of Advanced Fuel Filtration Systems, Inc.'s
contract to perform emergency repairs for the City's underground fuel storage system at 150 Illinois
Street and award a takeover contract to Advanced Environmental Services, Inc. (Fiscal impact =
$9,645.00).
RECOMMENDED COUNCIL ACTION:
Recommendation — (1) Terminate Advanced Fuel Filtration Systems, Inc.'s contract; (2) Award a
takeover contract to Advanced Environmental Services, Inc.; (3) Authorize the City Manager to sign the
takeover contract on the City's behalf; and (4) Alternatively discuss and take otheraction related to this
item.
BACKGROUND & DISCUSSION:
Annual testing and certification of underground fuel storage systems is mandated by the State Water
Resources Control Board in compliance with Senate Bill 989. In 2003, Advanced Fuel Filtration
Systems, Inc. performed underground fuel storage system testing at the City Maintenance Facility. A
test of the system showed failure due to leaks in the secondary side of the containment system. The
leaks were attributed to poor soils, site conditions and /or earth movement. Initial repairs were
completed and during the re- testing, using a gas test, additional leaks Mre discovered.
(Please see attached page marked "Background and Discussion ")
ATTACHED SUPPORTING DOCUMENTS:
Draft Takeover Contract
FISCAL IMPACT:
Operating Budget: $9,645.00
Amount Requested: $9,645.00
Account Number: 001 -40- 2601 -6215
Project Phase: Award of Contract
Appropriation Required: No
DATE:
/�
�/
Mary Strenn, City Manager Oy
8 0 12
BACKGROUND & DISCUSSION• (continued)
To repair the additional leaks, the City entered into an emergency Public Works Contract with Advanced
Fuel Filtration Systems, Inc, on May 25, 2004. The scope of the project included secondary containment
testing, necessary repairs, and certification for two (2) underground gasoline tanks, one (1) underground
diesel tank and one (1) underground waste oil tank.
Advanced Fuel Filtration Systems, Inc. delayed starting the project and eventually discontinued
communications with the City. On October 29, 2004, the City canceled its contract with Advanced Fuel
Filtration Systems, Inc. due to default under the contract specifications. The company has apparently
dissolved and appears to be bankrupt.
Per provisions in the Public Works Contract, the City can terminate the contract with Advanced Fuel
Filtration Systems, Inc., and award a takeover contact to a contractor who agrees to assume
responsibility for completing the project. Staff recommends awarding a takeover contract to Advanced
Environmental Services, Inc., a prior affiliate of Advanced Fuel Filtration Systems, Inc., rather than
bidding a new Public Works contract due to the continuing need to mitigate the leaks discovered last
Spring in a timely manner. An investigation of Advanced Environmental Services, Inc. indicates the
company is solid and capable of completing the secondary containment repairs. Furthermore,
Advanced Fuel Filtration Systems, Inc. has the baseline test documents from Advanced Fuel Filtration
Systems, Inc. The Request for Proposal process would prolong the repairs by several months and
additional testing costs would be required by any other contractor.
The total cost of repairs for the takeover contract includes system re -test, replacement of concrete
surfaces and implementation contingencies is $9,645.00.
11
TAKEOVER AGREEMENT BETWEEN
THE CITY OF EL SEGUNDO
AND
ADVANCED ENVIRONMENTAL SERVICES, INC
This AGREEMENT is entered into this — day of 2004, by and between the CITY OF
EL SEGUNDO, a general law city and municipal corporation ( "CITY "), and ADVANCED
ENVIRONMENTAL SERVICES, INC., a California Corporation ( "CONTRACTOR ").
1. RECITALS. This Agreement is made with reference to the following facts and objectives:
A. On April 6, 2004, CITY and ADVANCED FUEL FILTRATION SYSTEMS,
INC., a California Corporation, entered into a written contract for emergency
repair of City Maintenance Facility underground fuel storage system at 150
Illinois within CITY's jurisdiction ( "Project "). That contract is identified as
Contract No. 3325, dated April 6, 2004, for the purpose of repairing an existing
underground storage tank system to facilitate "SB 989" testing.
B. On October 29, 2004, CITY terminated ADVANCED FUEL FILTRATION
SYSTEMS, INC.'s control over the Contract. CITY now requests, and
CONTRACTOR agrees, that CONTRACTOR assume the rights and obligations
of the Contract in order to complete the project in accordance with the Contract.
2. CONSIDERATION.
A. CONTRACTOR will assume all the obligations; be entitled to all rights and
remedies; and be subject to all limitations and disabilities set forth in the Contract
and applicable law. The Contract are attached as Exhibit "A," and incorporated
into this Agreement by reference.
B. CONTRACTOR and CITY agree to abide by the terms and conditions contained
in this Agreement and the Contract;
C. CITY will compensate CONTRACTOR in the manner and in the amount set forth
in the Contract.
3. SCOPE OF SERVICES. CONTRACTOR will perform, or cause to be performed, the
work listed in the Contract.
4. TIME FOR PERFORMANCE. CONTRACTOR, or its designee, will not perform any
work under this Agreement until:
A. CONTRACTOR furnishes proof of insurance and bonding as required by the
• o,
Contract;
B. CITY gives CONTRACTOR a written, signed, and numbered purchase order
which references this Agreement and will serve as a Notice to Proceed ( "Notice to
Proceed "). This Agreement will supersede any conflicting provisions included on
the purchase order issued pursuant to this Agreement.
C. Should CONTRACTOR begin work on any phase in advance of receiving a
Notice to Proceed, any such services are at CONTRACTOR's own risk.
5. TAXPAYER IDENTIFICATION NUMBER. CONTRACTOR will provide CITY
with a complete Taxpayer Identification Number and Certification, Form V -9 (Rev. 12-
87), as issued by the Internal Revenue Service.
6• WAIVER. CITY's review or acceptance of, or payment for, work product prepared by
CONTRACTOR under this Agreement will not be construed to operate as a waiver of
any rights CITY may have under this Agreement or of any cause of action arising from
CONTRACTOR's, or its designee's, performance. A waiver by CITY of any breach of
any tern, covenant, or condition contained in this Agreement will not be deemed to be a
waiver of any subsequent breach of the same or any other term, covenant, or condition
contained in this Agreement whether of the same or different character.
7• NOTICES. All communications to either party by the other party will be deemed made
when received by such party at its respective name and address, as follows:
CITY CON_ TRACTOR
City of El Segundo Advanced Environmental
City Hall Services, Inc
350 Main Street 7 Amato
El Segundo, CA 90245 Mission Viejo, CA 92692
Any such written communications by mail will be conclusively deemed to have
been received by the addressee upon deposit thereof in the United States Mail,
postage prepaid and properly addressed as noted above. In all other instances,
notices will be deemed given at the time of actual delivery. Changes may be
made in the names or addresses of persons to whom notices are to be given by
giving notice in the manner prescribed in this paragraph.
COMPLIANCE WITH LAW. CONTRACTOR must, at its sole cost and expense,
comply with all of the requirements of all Municipal, State and Federal authorities now in
force, or which may subsequently be in force, pertaining to this Agreement and will
faithfully observe while performing this Agreement all Municipal ordinances and State and
Federal statutes now in force or which may subsequently be in force. The judgment of any
'T
court of competent jurisdiction, or the admission of CONTRACTOR in any action or
proceeding against CONTRACTOR, whether CITY be a party thereto or not, that
CONTRACTOR has violated any such ordinance or statute in performance of this
Agreement will be conclusive of that fact as between CITY and CONTRACTOR.
9. INTERPRETATION. This Agreement was drafted in, and will be construed in
accordance with the laws of, the State of California and exclusive venue for any action
involving this Agreement will be in Los Angeles County.
10. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire
understanding of the parties. There are no other understandings, terms or other
agreements expressed or implied, oral or written. There is one (1) Attachment to this
Agreement. This Agreement will bind and inure to the benefit of the parties to this
Agreement and any subsequent successors and assigns.
11. SE VERABILITY. If any portion of this Agreement is declared by a court of competent
jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to
the extent necessary in the opinion of the court to render such portion enforceable and, as
so modified, such portion and the balance of this Agreement will continue in full force
and effect.
12. MODIFICATION. This Agreement may be modified by written amendments that are
executed by both Parties. CITY's public works director is authorized to execute such
amendments on CITY's behalf.
13. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that agreements
ancillary to this Agreement, and related documents to be entered into in connection with
this Agreement, will be considered signed when the signature of a party is delivered by
facsimile transmission. Such facsimile signature will be treated in all respects as having
the same effect as an original signature.
14. COUNTERPARTS. This Agreement may be executed in any number or counterparts,
each of which will be an original, but all of which together will constitute one instrument
executed on the same date.
15. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this
Agreement.
90
IN WITNESS WHERE OF the parties hereto have executed this contract the
day and year first hereinabove written.
CITY OF EL SEGUNDO:
Mary Strenn
City Manager
ATTEST:
APPR
MAR1
Cindy Mortesen
City Clerk
CONTRACTOR:
Joe C. Wilson
Account Executive /Project Manager
By:
Print Name:
Title:
Taxpayer ID
Number
Contractor State
License Number
Contractor City
Business License
Number
:/n
CITY OF EL SEGUNDO
CONTRACT DOCUMENTS
& SPECIFICATIONS
FOR
EMERGENCY REPAIR OF CITY MAINTENANCE FACILITY
UNDERGROUND FUEL STORAGE SYSTEM
PROJECT NO.: PW 04 -05
PUBLIC WORKS DEPARTMENT
GENERAL SERVICES DIVISION
150 ILLINOIS STREET
EL SEGUNDO, CA 90245
TELEPHONE: (310) 524 -2709
FACSIMILE: (310) 414 -0911
m
92
TABLE OF CONTENTS
SECTION I - LEGAL PAGE
A. CITY OF EL SEGUNDO
PUBLIC WORKS CONTRACT I -A -1 THROUGH I -A -5
B. FAITHFUL PERFORMANCE BOND I -B -1,2
C. LABOR AND MATERIALS BOND I -C -1 2
SECTION 11- GENERAL REQUIREMENTS
INSPECTION
A. GENERAL SPECIFICATIONS
1. SCOPE AND LOCATION OF WORK
II -A -1,2
II -A -1
2. TIME FOR COMPLETION
II -A -1
3. REGISTRATION OF CONTRACTORS
11 -A -1
4. CITY BUSINESS LICENSE
II -A -1
5. NOTIFICATIONS
II -A -2
6. EMERGENCY INFORMATION
II -A -2
B. STANDARD SPECIFICATIONS
II -B -1 THROUGH 36
SECTION III - SPECIAL PROVISIONS
A. STANDARDS III -A -1
B. EXAMINATION OF JOB SITE III -A -1
C.
INSPECTION
III-A-1
D.
TRAFFIC CONTROL
III -A -1
E.
PEDESTRIAN SAFETY
III -A -2
F.
USE OF PRIVATE PROPERTY
III -A -2
G.
WORK SCHEDULE
III-A-2
H.
METER BOXES
II -A -2
PROTECTION OF EXISTING IMPROVEMENTS III -A -2
J. DISPOSAL OF REMOVALS III-A-2
K. WASHING OF CONCRETE TRANSIT MIXERS III -A -3
L. SURFACE RESTORATION III -A -3
M. REPAIRS, REPLACEMENTS, CLEANUP III -A -3
93
3325 . 77
PUBLIC WORKS CONTRACT
BETWEEN
THE CITY OF EL SEGUNDO AND
ADVANCED FUEL FILTRATION SYSTEMS, INC
This CONTRACT is entered into this 6th day of April, 2004, by and between the
CITY OF EL SEGUNDO, a general law city and municipal corporation ( "the City ") and
ADVANCED FUEL FILTRATION SYSTEMS, INC ( "the Contractor').
1. WORK.
A. The Contractor will provide all work required by the Contract Documents
(the "Scope of Work "). The Contractor agrees to do additional work
arising from changes ordered by the City in accordance with the Contract
Documents.
B. The Contractor and the City agree to abide by the terms and conditions
contained in the Contract Documents;
C. The Contractor will furnish all of the labor; supplies and materials;
equipment; printing; vehicles; transportation; office space and facilities; all
tests, testing and analyses; and all matters whatsoever (except as
otherwise expressly specified to be furnished by the City) needed to
perform and complete the Work and provide the services required of the
Contractor by the Contract Documents.
D. "Contract Documents" means the Proposal; this Contract; Standard
Specifications; Supplementary Conditions; Exhibits; Addenda; Notice to
Proceed; Change Orders; Notice of Completion; and all other documents
identified in the Contract Documents which together form the contract
between the City and the Contractor for the Work. The Contract
Documents constitute the complete agreement between the City and the
Contractor and supersede any previous agreements or understandings.
2. CONTRACT SUM. The City agrees to pay the Contractor a sum not to exceed
NINE THOUSAND SIX HUNDRED FORTY -FIVE DOLLARS ($9,645.00) for the Work in
the manner set forth in the Contract Documents. The City may adjust this amount as
set forth in the Contract Documents.
3. TIME FOR PERFORMANCE.
A. The Contractor will fully complete the Work within Forty -Five, (45) working
days (the "Contract Time. ")
IA1 94
3325
B. The Contract Time will commence when the City issues a notice to
proceed. The Contract Documents will supersede any conflicting
provisions included on the notice to proceed issued pursuant to this
Contract.
C. The Contractor shall not perform any Work until:
The Contractor furnishes proof of insurance as required by the
Contract Documents; and
ii. The City gives the Contractor a written, signed, and numbered
purchase order and notice to proceed.
D. By signing this Contract, the Contractor represents to the City that the
Contract Time is reasonable for completion of the Work and that the
Contractor will complete the Work within the Contract Time.
E. Should the Contractor begin the Work before receiving written
authorization to proceed, any such Work is at the Contractor's own cost
and risk.
4. DISPUTES. Disputes arising from this contract will be determined in accordance
with the Contract Documents and Public Contracts Code §§ 10240 - 10240.13.
5. TAXPAYER IDENTIFICATION NUMBER. The Contractor will provide the City with
a Taxpayer Identification Number.
6. PERMITS AND LICENSES. Unless otherwise provided, the Contractor, at its sole
expense, will obtain and maintain during the Contract Time, all necessary permits,
licenses, and certificates that may be required in connection with the Work.
7. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps,
models, photographs and reports prepared by the Contractor under the Contract
Documents are the City's property. The Contractor may retain copies of said
documents and materials as desired, but will deliver all original materials to the City
upon the City's written notice.
8. INDEMNIFICATION. The Contractor agrees to indemnify and hold the City
harmless as set forth in the Contract Documents. The requirements as to the types and
limits of insurance coverage to be maintained by the Contractor as required by the
Contract Documents, and any approval of such insurance by the City, are not intended
to and will not in any manner limit or qualify the liabilities and obligations otherwise
assumed by the Contractor pursuant to the Contract Documents, including, without
limitation, to the provisions concerning indemnification.
I -A -2
9
3325•.
9. INDEPENDENT CONTRACTOR. The City and the Contractor agree that the
Contractor will act as an independent contractor and will have control of all work and the
manner in which is it performed. The Contractor will be free to contract for similar
service to be performed for other employers while under contract with the City. The
Contractor is not an agent or employee of the City and is not entitled to participate in
any pension plan, insurance, bonus or similar benefits the City provides for its
employees. Any provision in this Contract that may appear to give the City the right to
direct the Contractor as to the details of doing the work or to exercise a measure of
control over the work means that the Contractor will follow the direction of the City as to
end results of the work only.
10.AUDIT OF RECORDS. The Contractor will maintain full and accurate records with
respect to all services and matters covered under this Contract. The City will have free
access at all reasonable times to such records, and the right to examine and audit the
same and to make transcript therefrom, and to inspect all program data, documents,
proceedings and activities. The Contractor will retain such financial and program
service records for at least three (3) years after termination or final payment under the
Contract Documents.
11. NOTICES. All communications to either party by the other party will be deemed
made when received by such party at its respective name and address as follows:
The Ci
City of El Segundo
City Hall
350 Main Street
El Segundo, CA 90245
The Contractor
Advanced Fuel Filtration
Systems, Inc
1275 Graphite Dr
Corona, CA 92881
Any such written communications by mail will be conclusively deemed to have been
received by the addressee three (3) days after deposit thereof in the United States Mail,
postage prepaid and properly addressed as noted above. In all other instances, notices
will be deemed given at the time of actual delivery. Changes may be made in the
names or addresses of persons to who notices are to be given by giving notice in the
manner prescribed in this paragraph.
12. NO THIRD PARTY BENEFICIARY. This Contract and every provision herein are
for the exclusive benefit of the Contractor and the City and not for the benefit of any
other party. There will be no incidental or other beneficiaries of any of the Contractor's
or the City's obligations under this Contract.
13. INTERPRETATION. This Contract was drafted in, and will be construed in
accordance with the laws of the State of California, and exclusive venue for any action
involving this Contract will be in Los Angeles County.
I -A -3 96
3325,,,
14. EFFECT OF CONFLICT. In the event of any conflict, inconsistency, or incongruity
between any provision of the Contract Documents, precedence will be as follows:
A. This Contract;
B. Precedence of documents as determined in the Standard Specifications.
15. SEVERABILITY. If any portion of the Contract Documents are declared by a court
of competent jurisdiction to be invalid or unenforceable, then such portion will be
deemed modified to the extent necessary in the opinion of the court to render such
portion enforceable and, as so modified, such portion and the balance of this Contract
will continue in full force and effect.
16. AUTHORITY /MODIFICATION. The Parties represent and warrant that all necessary
action has been taken by the Parties to authorize the undersigned to execute this
Contract and to engage in the actions described herein. This Contract may be modified
by written amendment. The City's city manager, or designee, may execute any such
amendment on the City's behalf.
17. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this
Contract, agreements ancillary to this Contract, and related documents to be entered
into in connection with this Contract will be considered signed when the signature of a
party is delivered by facsimile transmission. Such facsimile signature will be treated in
all respects as having the same effect as an original signature.
18. COVENANTS AND CONDITIONS. The parties agree that all of the provisions
hereof will be construed as both covenants and conditions, the same as if the words
importing such covenants and conditions had been used in each separate paragraph.
19. CAPTIONS. The captions of the paragraphs of this Contract are for convenience of
reference only and will not affect the interpretation of this Contract.
20. TIME IS OF ESSENCE. Time is of the essence for each and every provision of the
Contract Documents.
[Signatures on next page]
I -A-4 97
3325
IN WITNESS WHERE OF the parties hereto have executed this contract the day
and year first hereinabove written.
CITY OF EL SEGUNDO:
A general law city
0
ATTEST:
By: 6'
Cin
Clerk City
CONTRACTOR:
corporation. Advanced Fuel Filtration Systems, Inc
Print
APPROVED� ?E3Rjy1�,"
MARK D. H S40" CITE ATTORNEY
By. d
Karl H. Berger,
Assistant City Attorney
Doug a L. Parker
James
Christ
Chief Operating Officer
TaxpayerlD
Number 33- 0677559
Contractor State
License Number
Contractor City
Business License
Number
769519
20940
I -A -5 98
FAITHFUL PERFORMANCE BOND
Bond No.
Bond Fee:
=•U,i rill itIfalIVA NYSTEMS INC (PRINCIPAL ") and
CITY OF EL SEGUNDO, a corporation incorporated under the laws of the State of
California and licensed by the State of California to execute bonds and undertakings as sole surety,
as surety ( "SURETY"), are held and firmly bound unto the CITY OF EL SEGUNDO ( "CITY ") in the
sum of NINE THOUSAND SIX HUNDRED FORTY - IVE DOLLARS ($9,645,00) dollars,
which is a minimum one hundred percent (100 %) of the contract amount, lawful money of the United
States, which may be increased or decreased by a rider hereto executed in the same manner as this
bond, for the payment of which sum PRINCIPAL and SURETY bind themselves, their successors,
and assigns, jointly and severally, by this instrument.
PRINCIPAL or SURETY will apply this bond for the faithful performance of any and all of the
conditions and stipulations set forth in this bond, SPECIFICATIONS NO. NA , and the public
works contract executed with such Specifications. In the case of any default in the performance of
the conditions and stipulations of this undertaking, it is agreed that PRINCIPAL or SURETY will
apply the bond or any portion thereof, to the satisfaction of any damages, reclamation,
assessments, penalties, or deficiencies arising by reason of such default.
BOND CONDITIONS
1. PRINCIPAL will repairthe public improvements identified in THE SCOPE OF WORK
2. PRINCIPAL's work on the Public Project will be done in accordance with applicable
plumbing, electrical, and mechanical codes and with any permit issued by CITY. Should
PRINCIPAL fail to complete all required work within the time allowed, CITY may, at its sole
discretion, cause all required work to be done and the parties executing the bond will be firmly
bound for the payment of all necessary costs therefor.
3. PRINCIPAL will guarantee its work against any defective work, labor, or materials on
the Public Project for a period of one (1) year following the Public Project's completion and
acceptance by CITY.
4. This bond is conditioned upon and guarantees due compliance with all applicable law
including, without limitation, the El Segundo Municipal Code ( "ESMC ").
5. SURETY, for value received, agrees that no changes, extensions of time, alteration
or modification of SPECIFICATIONS NO NA or of the obligation to be performed will in anyway
affect its obligation on this bond, and it waives notice of any such change, extension of time,
alteration or modification of the contract documents or of the obligation to be performed.
I -B -1
a.
IN
3325
6. This bond consists of this instrument; the plans and specifications identified above;
and the following two (2) attached exhibits all of which are incorporated herein by reference:
A. A certified copy of the appointment, power of attorney, bylaws or
other instrument entitling or authorizing the persons executing this
bond to do so;
B. A certificate issued by the county clerk for the county in which
SURETY's representative is located conforming with California Code
of Civil Procedure § 995.640 and stating that SURETY's certificate of
authority has not been surrendered, revoked, cancelled, annulled, or
suspended, or in the event that it has, that renewed authority has
been granted; and
7. Should PRINCIPAL perform its obligations within the time allowed, PRINCIPAL's
obligation will be void upon the acceptance of the performance by CITY; otherwise this obligation will
remain in full force and effect.
AND SEA LEp this 7-") day of M R 2o _b y
,A� � -- -IJ'ir�,"� ,L
Im
s PRESIDENT SURETY'S PRESIDENT
's SECRETARY SURETY'S SECRETARY
PRINCIPAL's MAILING ADDRESS:
Advanced Fuel Filtration S stems
513 Rochester Ave.
Rancho Cucamonga CA 91730
SURETY's MAILING ADDRESS:
NOTE: (1) ALL signatures must be acknowledged by a notary public.
Return two (2) originals to City Clerk's Office.
(2) Bond shall be effective for one (1) year after acceptance of the job.
ZAP!
100
ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of R t v ev S t'D c j SS.
On h A 4 2 M , Z6c'a before me, J la � � • 1 22ov>v
(DATF7
personally appeared 'D 00-D
P Y PP ou��AS L.
3325 -7
[� personally known to me - OR - ❑ proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s)
is /are subscribed to the within instrument and
acknowledged to me that he /she /they executed
the same in his /her /their authorized
capacity(ies), and that by his /her /their
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the
person(s) acted, executed the instrument.
N. 0. NARROUN A
N CO RIRI.B 1172332
NOTARYDWLIC- CALIFORNIA N WITNESS my hand and official seal.
Riw'. CMxNy
My Comm. EeDllee Feb. N
NGTART'�bIGNATURE
OPTIONAL INFORMATION
The information below is not required by law. However, it could fraudulent attachment of this acknowl-
edgment to an unauthorized document.
CAPACITY CLAIMED BY SIGNER (PRINCIPAL) DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
CORPORATE OFFICER
PResIbt�-WT /C ,r.c,,
11T s)
❑ PARTNER(S)
❑ ATTORNEY-IN -FACT
❑ TRUSTEE(S)
❑ GUARDIAN /CONSERVATOR
❑ OTHER:
c.tyY 4c rti �� oo et.rr2ac
TITLE OR TYPE OF DOCUMENT
2
NUMBER OF PAGES
m AY 2 S 2. coo "l
DATE OF DOCUMENT
I SIGNER 1S REPRESENTING:
1 NAME OF PERSON(S) OR ENTITYpE51 RIGHTTHUMBPRINT
I
Ft L"? LGAJ OF
—S`I S Tb�S SIGNER
d 0 uL
APA 5/99
VALLEY - SIERRA, 800- 362 -3369 -
rw
E
101
ALL - PURPOSE ACKNOWLEDGMENT
State of California
3325•
Count of j SS.
Y RtJc�YLS Int J
On "fay Z 7604 before me, 1A, 7. 1
fDAI'E) � 2Cr1
personally appeared
ctMtsr
SIONER(S)
personally known to me - OR - ❑ proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s)
is /are subscribed to the within instrument and
acknowledged to me that he /she /they executed
the same in his /her /their authorized
capacity(ies), and that by his /her /their
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the
person(s) acted, executed the instrument.
_�� H. D. NARROUN JR WITNESS my hand and official seal.
N NOTA vmu 01472332 r^
Riw)MEe -CALIFORNIA N
My Comm. Eepme Feb. an
VO["my SSI6 AFURE
OPTIONAL INFORMATION
The information below is not required However, fraudulent attachment of this acknowl-
edgment to an unauthorized document.
CAPACITY CLAIMED BY SIGNER (PRINCIPAL)
❑ INDIVIDUAL
R CORPORATE OFFICER
Scc(Zt�r-tx -Zy
n FLNS]
❑
PARTNER(S)
❑
NITORNEY-IN -FACT
❑
TRUSTEE(S)
❑
GUARDIAN /CONSERVATOR
❑
OTHER:
DESCRIPTION OF ATTACHED DOCUMENT
ITV (IF &L S�T6 i>6 G!wl'Ci2ricr
TITLE OR TYPE OF DOCUMENT
_ , Z
NUMBER OF PAGES
DATE OF DOCUMENT
I SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR FNnrvuES I RIGHT THUMBPRINT
' ANN 01- I 5\7 Fy tZ Ftl. r2 AT k'0 OF
i
SIGNER
APA 5/99
VALLEY-SIERRA, 800 -362 -3369
102
332 5`
LABOR AND MATERIALS BOND
Bond No.
Bond Fee:
CITY OF EL SEGUNDO,l a orporaton? ncorpor ted unde P theplawsPntheP State of of
California and licensed by the State of California to execute bonds and undertakings as sole surety,
as surety ( "SURETY"), are held and firmly bound unto the CITY OF EL SEGUNDO ( "CITY") in the
sum of NINE THOUSAND SIX HUNDRED FORTY -FIVE DOLLARS 9 645.00 dollars,
which is a minimum one hundred percent (100 %) of the contract, lawful money of the United States,
which may be increased or decreased by a rider hereto executed in the same manner as this bond,
for the payment of which sum PRINCIPAL and SURETY
assigns, jointly and severally, by this instrument. bind themselves, their successors, and
This bond is conditioned upon and guarantees payment by PRINCIPAL to contractors,
subcontractors, and persons renting equipment; payment by PRINCIPAL and all PRINCIPAL'S
subcontractors for all materials, provisions, provender, or other supplies, and equipment used in,
upon, for or about the performance of the work contemplated in THE SCOPE OF WORK
( "Public Project "), the public works contract executed for such Public Project, and for ail work or
labor of any kind performed for the Public Project. In the case of any default in the performance of
the conditions and stipulations of this undertaking, it is agreed that PRINCIPAL or SURETY will
apply the bond or any portion thereof, to the satisfaction of any damages, reclamation,
assessments, penalties, or deficiencies arising by reason of such default.
BOND CONDITIONS
1. PRINCIPAL will repairthe public improvements identified in THE SCOPE OF WORK
Such performance will be in accordance with applicable plumbing, electrical and mechanical codes
which are made a part of this bond when said Scope of Work is approved by the City Council.
2. PRINCIPAL will pay all contractors, subcontractors, and persons renting equipment.
3. PRINCIPAL will pay for all materials and other supplies, for equipment used in, on,
for or about the performance of the Public Project, and will pay for all work and labor thereon.
4. This bond is conditioned upon and guarantees due compliance with all applicable law
including, without limitation, the El Segundo Municipal Code ( "ESMC ").
5. SURETY, for value received, agrees that no changes, extensions of time, alteration
or modification of SPECIFICATIONS NO. NA or of the obligation to be performed will in any way
affect its obligation on this bond, and it waives notice of any such change, extension of time,
alteration or modification of the contract documents or of the obligation to be performed.
I -C -1
103
3325-.`.1.
6. This bond consists of this instrument; the plans and specifications identified above;
and the following TWO (2) attached exhibits all of which are incorporated herein by reference:
A. A certified copy of the appointment, power of attorney, bylaws or other instrument
entitling or authorizing the persons executing this bond to do so; and
B. A certificate issued by the county clerk for the county in which SURETY'S
representative is located conforming with California Code of Civil Procedure §
995.640 and stating that SURETY's certificate of authority has not been
surrendered, revoked, cancelled, annulled, or suspended, or in the event that it
has, that renewed authority has been granted.
7. Should PRINCIPAL perform its obligations within the time allowed, PRINCIPAL's
obligation will be void upon the acceptance of the performance by CITY; otherwise this obligation will
remain in full force and effect.
AND SEAL this 2 day of i'1 AY 20 Oq
Parker
's
-rdmes R. Christ
PRINCIPAL's SECRETARY
PRINCIPAL's MAILING ADDRESS:
Advanced Fuel Filtration Systems
Roc ester Ave.
Rancho Ciicamon a CA 91730
SURETY's PRESIDENT
SURETY's SECRETARY
SURETY's MAILING ADDRESS:
NOTE: (1) ALL signatures must be acknowledged by a notary public.
Return two (2) originals to City Clerk's Office.
(2) Bond shall be effective for one (1) year after acceptance of the job.
I -C -2
104
ALL - PURPOSE ACKNOWLEDGMENT 2 5 eR
F e of California nty of iZty �2s, pt I SS.
FAfkR l L L Z oc,Lt before me, 1 t� (Dli) t>(L 20 onally appeared 7 o U 6 L s `, P sea 2 "° A"
SIGNER(S)
personally known to me - OR - ❑ proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s)
is /are subscribed to the within instrument and
acknowledged to me that he /she /they executed
the same in his /her /their authorized
capacity(ies), and that by his /her /their
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the
person(s) acted, executed the instrument.
H. D. HARROUH JR
Comm.11771332
(� WA*yvxWU Mtxu N WITNESS my hand and official seal.
M/ Cmnm. Egira Feb. 24,2M
_ _9�nni uxr.
OPTIONAL INFORMATION
The information below is not required by law. However, it could prevent fraudulent attachment of this acknowl-
edgment to an unauthorized document.
CAPACITY CLAIMED BY SIGNER (PRINCIPAL)
❑ INDIVIDUAL
CORPORATE OFFICER
PT? V 5s I'DC .rr/ C .0-0
❑
PARTNER(S)
❑
ATTORNEY -IN -FACT
❑
TRUSTEE(S)
❑
GUARDIAN /CONSERVATOR
❑
OTHER:
DESCRIPTION OF ATTACKED DOCUMENT
Ll14 Ur el SE Uwe ro -TQ0cT
TITLE OR TYPE OF DOCUMENT
NUMBER OF PAGES
MAY Z f, ZG6 1
DATE OF DOCUMENT
P SIGNER IS REPRESENTING:
I NAMEOFaERSON(s)ORE"TIIY(IHs) RIGHT THUMBPRINT
t' V E t 2 r —�`� v }.c c D A OF
_�Y.�T t">✓1 S t N C
SIGNER
APA 5/99 VALLEY -
SIERRA, 800 -362 -3369
4
J 2 5
.:.:
ALL- PURPOSE ACKNOWLEDGMENT
State of California
County of Q sV ow S 1 j SS.
On r 1 t}y Z 2 p o `t before JJJ 1 �.
(onS T � me, 4fA2 R G V ✓u
personally appeared
�RMG�S 'n. CN -2�5r
SIGNF.R(S�
Kpersonally known to me - OR -
❑ proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s)
is /are subscribed to the within instrument and
acknowledged to me that he /she /they executed
the same in his /her /their authorized
capacity(ies), and that by his /her /their
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the
persons) acted, executed the instrument.
H. 0. HARROUN IR
COMM. i1472331 WITNESS my hand and official seal.
NOT
N AR'I" RN -CALIFORNIA
My Comm. SM-91 F� I, 2m r
NOTARY S!}ICNAl UR6
The information below is not required by INFORMATION
byPTIONAL fraudulent attachment of this acknowl-
edgment to an unauthorized document.
CAPACITY CLAIMED BY SIGNER (PRINCIPAL) DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
ti' CORPORATE OFFICER
S�C cll`/ oi- ci- SF& -a CoNT(ZracT
nr�E(s( TITLE OR TYPE OF DOCUMENT
❑ PARTNER(S)
❑ ATTORNEY -IN -PACT Z
El TRUSTEE(S)
NUMBER OF PAGES
❑ GUARDIAN /CONSERVATOR M P-y -ZS
❑ OTHER: -_ DATE OF DOCUMENT
S SIGNER IS REPRESENTING:
NAME OF PERSONS, OR ENTITY IESI RIGHT THUMBPRINT
\l� t�rJf F11 F tZ Fit rz wr OF
"C SIGNER
APA 5 99
VALLEY-SIERRA, 800-362 -3369
100
SECTION II - GENERAL REQUIREMENTS
A. GENERAL SPECIFICATIONS
SCOPE AND LOCATION OF WORK
The work to be done consists of furnishing all materials, equipment, tools, labor, and incidentals as
required by the Plans, Specifications, and contract documents. The general items of work include
the following:
Repair existing underground storage tank systems to facilitate SB989 testing. Includes: saw
cut; breakout and excavate all materials to expose work area; necessary repairs on the
secondary system; and backfill and replacement of all disturbed concrete /asphalt.
Contractor will furnish all materials, parts, labor and testing to complete this project.
TIME FOR COMPLETION
CONTRACTOR will commence work on date specified in the Notice to Proceed to be issued to
said CONTRACTOR by the Public Works Department of CITY and will complete work on the
PROJECT within FORTY -FIVE (45) WORKING DAYS after the date of commencement.
REGISTRATION OF CONTRACTORS
No bid will be accepted from a CONTRACTOR who has not been licensed in accordance with the
Provisions of the laws of the State of California relating to licensing of contractors, for the type of
work to be performed under this Contract.
CITY BUSINESS LICENSE
CONTRACTOR and SUB - CONTRACTORS will obtain a City Business License before execution
of the construction contract.
II-A-1
10 �'
NOTIFICATIONS
The CONTRACTOR will notify all agencies listed here in a minimum of forty -eight (48) hours before start
Of operation. The following list of names and telephone numbers are intended for the convenience of the
CONTRACTOR and the City does not guarantee either the completeness or correctness of this list.
OPE— RATION
OFFICE
Public Works/ General Services Division:
Start of work, shutdown of work, David Johnson, Interim Public Works Director
or resumption of work after Bellur Devaraj, City Engineer
Shutdown Paul Bowen, Civil Engineer Associate
Closing of streets
El Segundo Police Department **
TELEPHONE
310 - 524 -2356
310 - 524 -2358
310 - 524 -2359
310 - 524 -2200
El Segundo Fire Department •*
Street striping 310 - 524 -2236
Street Maintenance Division
310 - 524 -2709
** The CONTRACTOR will notify the General Services Division before notifying these offices.
The following information is provided for CONTRACTOR'S use to notify agencies if their
facilities are affected by CONTRACTOR'S
work:
1 . Underground Service Alert (all excavation in public right -of -way) -
2• City of El Segundo – Water/Wastewater Division
800-422-4133
3. City of El Segundo – Recreation and Parks
310 - 524 -2742
4. Southern California Gas Company
310 -524 -2707
5. Southern California Edison Company
310 - 671 -9002
(SCE)
6. Pacific Bell
310 -417 -3366
7• Time Warner Communication (Cable)
310-515 -4430
310 - 768 -0400
8. Los Angeles County Sanitation District
Extension 414
9. El Segundo Unified School District
310 - 699 -7411
EMERGENCY INFORMATION
310 - 322 -4500
The names, addresses and telephone numbers of the CONTRACTOR and subcontractors,
or their representatives, will be filed with the City
Engineer and the City Police Department
BEFORE PERFORMING WORK.
II -A -2 108
CITY OF EL SEGUNDO
PUBLIC WORKS DEPARTMENT
STANDARD SPECIFICATIONS
0 -0 STANDARD SPECIFICATIONS
0 -1 GENERAL
Except as modified by these Standard Specifications, the provisions of the
latest edition of the "Standard Specifications for Public Works Construction"
and its supplements prepared and promulgated by the Southern California
Chapters of the American Public Works Association and the Associated
General Contractors of America, constitute the Standard Specications for
this project. fi
0-2 NUMBERING OF SECTIONS
The numbering contained within the Standard Specifications of the Contract
Documents is intended to correspond with SSPWC numbering.
0 -3 MODIFICATIONS
To the extent that the provisions of the Contract Documents conflict with the
SSPWC, the Contract Documents take precedence.
1 -2 DEFINITIONS
The following subsection is added to Subsection 1 -2 of the SSPWC.
1-2.1 ADDITIONAL DEFINITIONS
Acceptance — The date on which the City Council accepts the Work as
complete.
Architect, Design Engineers, Soils Engineer, Structural Engineers
employed employed by the City.
Bidder- Any individual, firm, partnership, corporation, or combination thereof,
submitting a proposal for the work contemplated, acting directly or through a
duly authorized representative.
City Council - The body constituting the awarding authority of the City.
STANOARO SPECIFICATIONS l4a M 004
RM
10 �;
3,32 ,5
Compensable Delay -- a delay entitling the Contractor to an adjustment of
the Contract Sum and an adjustment of the Contract Time in accordance
With this Agreement.
Due Notice - A written notification, given in due time, of a proposed action
where such notification is required by the contract to be given a specified
interval of time (minimum 48 hours or two working days) before the
commencement of the contemplated action. Notification may be from
Engineer to Contractor or from Contractor to Engineer.
Engineer - The City Engineer, or designee, as defined in the SSPWC.
Unless otherwise provided, all correspondence and decisions made relative
to the contract will be by the City Engineer or his designated representative.
PCC — California Public Contract Code.
Prompt - The briefest interval of time required for a considered reply,
including time required for approval of a governing body.
Public Works Director — The City's Public Works Director, or designee.
State Standard Specifications - State of California Standard Specifications,
dated July 1992, Business and Transportation Agency, Department of
Transportation
Working Days - A working day is defined as any day, except Saturdays,
Sundays, legal holidays and days when work is suspended by the Engineer,
as provided in Subsection 6 -3 and days determined to be non - working in
accordance with Subsection 6 -7, "Time of Completion."
1 -3 ABBREVIATIONS
The following Subsection is added to Subsection 1 -3 of the SSPWC.
1 -3.1 The following abbreviations are added to Subsection 1 -3 of the SSPWC:
AAN American Association of Nurserymen
AGC Associated General Contractors of America
AISC American Institute of Steel Construction
APWA American Public Works Association
ASME American Society of Mechanical Engineers
IEEE Institute of Electric and Electronic Engineers
NEC National Electric Code
SSPWC Standard Specification for Public Works Construction, 2000
edition, and subsequent supplements prepared by Southern
California Chapters of AGC and APWA
STANDARD SPMFIGTIONS ILB Y8@00< J 1 G
H -B -2 1
25,
c 91{
WATCH Work Area Traffic Control Handbook
SPPWC Standard Plans for Public Works Construction bythe American
Public Works Association 1997 edition and subsequent
supplements
ASA American Standard Association
CITY City of El Segundo
SSP State of California Standard Plans, July 1995 edition
SSS State of California Standard Specifications, July 1999 edition
SECTION 2 — SCOPE AND CONTROL OF WORK
The following subsections 2 -1.1 and 2 -1.2 are added to the SSPWC.
2 -1.1 ACCESS TO PROJECT SITE
Not later than the date designated in the current Contract Schedule
submitted by the Contractor, the City will provide access to the real property
and facilities upon which the Work is to be performed, including access to
real property and facilities designated in the Contract Documents for the
Contractor's use.
2 -1.2 OWNERSHIP AND USE OF CONTRACT DOCUMENTS.
The Contract Documents and all copies f rni be used on provide by the
d ma
Contractor are the City's property Y
2 -3 SUBCONTRACTS
Subsection 2 -3 Subcontractors of SSPWC is deleted in its entirety and
replaced with the following subsection.
2 -3.1 GENERAL
Except as provided in PCC §§ 4100 et. seq., each bidder will file with its bid
the name and location of the place of business of each subcontractor who
will perform work or labor or render service to the prime contractor in or
about the construction of the work or improvement, or a subcontractor
licensed by the State of California who, under subcontract to the prime
contractor, specifically fabricates and installs a portion of the work or
improvement according to detailed drawings contained in the plans and
specifications, in an amount in excess of one -half of one percent of the prime
contractor's total bid. Only one subcontractor will be listed for each portion of
the work, which portion will be defined in the bid. In each instance, the
nature and extent of the work to be sublet will be described. The failure of
the Contractor to specify a subcontractor, or the listing of more than one
111
STANDARD SPECIFICATIONS ILB U IM4 11 -13-3
332 5 , �8
subcontractor for the same portion of the work, constitutes an agreement by
the Contractor that it is fully qualified to perform that portion itself and that it
will perform that portion itself.
The Contractor must have the City Council's written consent to substitute a
subcontractor other than that designated in the original bid, to permit any
subcontract to be assigned or transferred, or to allow a subcontract to be
performed by other than the original subcontractor.
Subcontracting of work for which no subcontractor was designated in the
original bid, and which is more than one -half of one percent of the work, will
be allowed only in cases of public emergency or necessity, and then only
after a finding reduced to writing as a public record of the City Council setting
forth the facts constituting the emergency or necessity.
Violation of any of the above provisions will be considered a breach of the
Contract, and the City may terminate the Contractor's control over the Work,
cancel the contract, or assess the Contractor a penalty of not more than ten
percent of the subcontract involved.
All persons engaged in the work, including subcontractors and their
employees will be considered as employees of the Contractor. The
Contractor will be solely responsible for and have control over construction
means, methods, techniques, sequences, procedures, and the coordination
of all portions of the Work. The City will deal directly with, and make all
payments to, the prime Contractor.
When subcontracted work is not being prosecuted in a satisfactory manner,
the Contractor will be notified to take corrective action. The Engineer may
report the facts to the City Council. If the City Council so orders, and on
receipt by the Contractor of written instructions from the Engineer, the
subcontractor will be removed immediately from the Work. That
subcontractor will not again be employed on the Work.
2 -3.2 ADDITIONAL RESPONSIBILITY
Add the following to Subsection 2 -3.2 Additional Responsibility:
The Contractor will submit experience statements for each subcontractor
who will perform contract work that amounts to more than ten percent (10 %)
of the Work.
2 -4 CONTRACT BONDS
The following paragraph is added to Subsection 2 -4 of the SSPWC.
The Faithful Performance Bond and the Labor and Materials Bond must be
paid up and in effect for one year after the acceptance of the job by the City
112
STANDARD SPECIFICATIONS I'S MMW4
11 -B -4
in accordance with the guarantee required by Subsection 6 -8.1.
2 -5 PLANS AND SPECIFICATIONS
Subsection 2 -5.1 of the SSPWC is replaced by the following subsection.
2 -5.1 GENERAL
The Contractor will maintain the following at the Work site:
One as -built copy of the Plans and Specifications, in good order and
marked to record current changes and selections made during
construction. - NA
2. The current accepted Contract Schedule.
3. Shop Drawings, Product Data, and Samples. - NA
4. Approved permits from other agencies, including Cal -OSHA permits
for trench shoring.
5. All other required submittals.
The Plans, Specifications, and other Contract Documents will govern the
Work. The Contract Documents are intended to be complementary and
cooperative and to describe and provide for a complete project. Anything in
the Specifications and not on the Plans, or on the Plans and not in the
Specifications, will be as though shown or mentioned in both.
Payment for any items on the plans for which there are no specific bid item
will be included in the various items of work or in any item to which it is
appurtenant.
If the Contractor performs any work which it knows or should know involves
an error, inconsistency, or omission without notifying and obtaining written
consent from the Engineer, the Contractor will be responsible for the
resulting losses, including, without limitation, the costs of correcting defective
work.
2 -5.2 PRECEDENCE OF CONTRACT DOCUMENTS
The following paragraph is added to subsection 2 -5.2 of the SSPWC:
As the figured dimensions shown on the plans and in the specifications of
the Contract may not in every case agree with scaled dimensions, the figured
dimensions will be followed in preference to the scaled dimensions, and
113
STANOARO SPECIFICATIONS 1F OW004
11 -B -5
3325 • :'
plans to a large scale will be followed in preference to the plans to a small
scale. Should it appear that the work to be done, or any of the matters
relative thereto, are not sufficiently detailed or explained in the Contract, the
Contractor will apply to the Engineer for such further explanations as may be
necessary, and will conform thereto as part of the Contract so far as may be
consistent with the terms thereof. Any items shown on drawings and not
mentioned in the specifications will be of like effect as if shown or mentioned
in both.
2 -5.5 ACCURACY OF PLANS AND SPECIFICATIONS - NA
Although it is believed that much of the information pertaining to conditions
and existing utilities that may affect the cost of the Work will be shown on the
Plans or indicated in the Specifications, the City does not warrant the
completeness or accuracy of such information.
The Contractor will carefully study and compare each of the Contract
Documents with the others and with information furnished by the City and will
promptly report in writing to the Engineer any errors, inconsistencies, or
omissions in the Contract Documents or inconsistencies with applicable law
observed by the Contractor.
The Contractor will take field measurements, verify field conditions, perform
soil investigations, and carefully compare with the Contract Documents such
field measurements, conditions, and other information known to the
Contractor before commencing the Work. Errors, inconsistencies, or
omissions discovered at any time will be promptly reported in writing to the
Engineer.
2 -8 RIGHT -OF -WAY
The following subsection is added to Subsection 2 -8 of the SSPWC.
2 -8.1 ADDITIONAL WORK AREAS AND FACILITIES
When the Contractor arranges for additional temporary work areas and
facilities, the Contractor will provide the City with proof that the additional
work areas or facilities have been left in a condition satisfactory to the
owner(s) of said work areas or facilities before acceptance of the work.
2 -9 SURVEYING
Subsection 2 -9.3, Survey Service, is deleted in its entirety and replaced by
the following subsection:
2 -9.3 SURVEY SERVICE - NA
114
STANDARD SPECIFICATIONS IL9 M02001
11 -13 -6
2 -9.3.1 CONSTRUCTION SURVEYING - NA
The Contractor will provide for all construction surveying required to layout,
monitor and complete the work. The surveying will be performed by a Land
Surveyor or Civil Engineer authorized to practice land surveying by the State
of California.
The Project Benchmark is shown on the plans. The Contractor will establish
all necessary control lines based on the plans and record information on file
with the County of Los Angeles Surveyor and the Engineer.
It is the responsibility of the Contractor to protect the survey control as shown
on the plans. If the survey control is destroyed or disturbed during
construction, the Contractor will provide for resetting them and file
appropriate documents with the County of Los Angeles at the direction of the
Engineer.
Computations, survey notes, and other data used to accomplish the work will
be neat, legible and accurate. Copies of all computations, survey notes, and
other data (electronic format may be required) will be furnished to the
Engineer before beginning work that requires their use.
2 -9.3.2 MEASUREMENT AND PAYMENT - NA
Construction Survey — Unless a separate bid item is provided, payment will
be considered included in the other items of the bid and no additional
payment will be made therefore.
3 -3.2.2 BASIS FOR ESTABLISHING COSTS - NA
Subsection 3 -3.2.2 (c), Tool and Equipment Rental is modified where the
second and third paragraphs are replaced with "Regardless of ownership, the
rates to be used in determining the equipment usage costs will not exceed
those listed for the same or similar equipment in the California State
Department of Transportation publication of Labor Surcharge and Equipment
Rates effective for the period of usage."
3 -3.2.3 MARKUP
Subsection 3- 3.2.3, Mark Up, is deleted in its entirety and replaced by the
following subsection:
(a) Work by Contractor. The following percentages will be added to the
Contractor's costs and will constitute the markup for all overhead and
profits.
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1) Labor ....... ............................... 20
2) Materials .... .............................15
3) Equipment Rental ...................15
4) Other Items and Expenditures 15
To the sum of the costs and markups provided for in this subsection,
1 percent will be added as compensation for bonding.
(b) Work by Subcontractors. When all or any part of the extra work is
performed by a Subcontractor, the markup established in 3- 3.2.3(a)
will be applied to the Subcontractor's actual cost of such work. A
markup of 10 percent on the first $5,000 of the subcontracted portion
of the extra work and a markup of 5 percent on work added in excess
of $5,000 of the subcontracted portion of the extra work may be
added by the Contractor.
3 -3.3 DAILY REPORTS BY CONTRACTOR
Add the following paragraph to subsection 3 -3.3, Daily Reports by
Contractor:
If disagreement continues regarding extra work, the Contractor may seek
compensation in accordance with the Claims procedure. Daily Reports
required by this subsection must be made part of the Claim as supporting
data for the Claim.
3-4 CHANGED CONDITIONS
Subsection 3 -4, Changed Conditions, is deleted in its entirety and replaced
with the following subsection:
If the Contractor encounters concealed or unknown conditions that differ
materially from those anticipated or expected ( "changed conditions "), the
Contractor will immediately notify the Engineer in writing of such changed
conditions (upon discovery and before disturbing such changed conditions),
as provided in Subsection 6 -11, so that the Engineer can determine if such
conditions require design details that differ from those design details shown
in the Contract Documents. Notwithstanding the thirty (30) day time period
set forth in Subsection 6 -11.3, the Contractor will be liable to the City for any
extra costs incurred as a result of the Contractor's failure to promptly give
such notice.
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Changed conditions will include, without limitation, the following:
Subsurface or latent physical conditions differing materially
from those represented in the Contract Documents;
2. Unknown physical conditions of an unusual nature differing
materially from those ordinarily encountered and generally
recognized as inherent in work of the character being
performed; and
Material differing from what is represented in the Contract
which the Contractor believes may be hazardous waste as
defined in California Health & Safety Code § 25117 that is
required to be removed to a Class I, ll, or III disposal site in
accordance with applicable law.
The Engineerwill promptly investigate conditions that appear to be changed
conditions. The Engineer's decision, and any dispute regarding that
decision, will be made in accordance with Section 6 -11 except that the
Engineer will render a decision promptly.
Any information provided pursuant to INFORMATION AVAILABLE TO
BIDDERS is subject to the following provisions: - NA
The information is made availableforthe Bidders' convenience
and is not a part of the Contract.
2. The City has not determined the accuracy or completeness of
such information and all such information is made available to
Bidders without any representation or warranty by the City
whatsoever as to its accuracy, completeness, or relevancy.
Bidders will independently evaluate such information for their
use and will be solely responsible for use or interpretation of
such information. Any such use or interpretation will not be the
basis of any claim against the City.
DISPUTED WORK
Subsection 3 -5 is deleted in its entirety and replaced by the following
subsection.
If the Contractor and the City do not reach agreement on disputed work, the
City may direct the Contractorto proceed with the work. Any paymentforthe
disputed work will be determined pursuant to the claims procedures in these
Standard Specifications. Although not to be construed as proceeding under
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extra work provisions, the Contractor will keep and furnish records of
disputed work as required by the Contract Documents.
INSPECTION REQUIREMENTS
Subsection 4 -1.3, Inspection Requirements, is deleted in its entirety and
replaced by the following subsections.
GENERAL
Unless otherwise specified, inspection at the source of production for such
materials and fabricated items as bituminous paving mixtures, structural
concrete, fabricated metal products, cast metal products, welding, reinforced
and unreinforced concrete pipe, application of protective coatings, and
similar shop and plant operations is not required. A certificate of compliance,
signed by an authorized officer of the producer, certifying compliance with
the contract documents will be submitted for all of the following materials:
steel pipe, sizes less than 18 inches; vitrified clay pipe; asbestos cement
pipe; cast iron pipe; reinforced concrete pipe; non - reinforced concrete pipe;
and PVC sewer and water pipe; subject to sampling and testing by City.
Standard items of equipment, such as electric motors, conveyors, plumbing
fittings and fixtures, lumber, plywood, and so on, are subject to inspection at
the job site, at the Engineer's sole discretion.
All other equipment items will be inspected and tested in accordance with the
contract documents.
The City does not provide full time inspection. The Contractor will provide
24 -hour minimum notice for each inspection required by the work unless
other arrangements have been agreed upon, in writing, with the City
Engineer. Any inspection required outside of normal working hours and
days, including holidays, will be at the Contractor's cost at rates established
by the City.
INSPECTION OF MATERIALS NOT PRODUCED LOCALLY - NA
Contractor purchased materials, fabricated items, and equipment, produced
at sources located more than 50 miles outside the corporate limits of the
City, and which are specified to be inspected in the Contract Documents, will
be inspected by inspectors or testing laboratories arranged for and paid for
by City. Report of such inspection must be submitted to the City. If any item
inspected fails to meet the specified criteria, the Contractor will pay all costs
for reinspection, and such costs may be deducted from payments due to the
Contractor.
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4 -1.6 TRADE NAMES OR EQUALS - NA
Whenever any material, product, equipment, orservice is specified by brand,
trade, or proprietary name, the item so specified will be deemed to be
followed by the words "or equal ".
For the City's consideration of a proposed "equal" item, the Bidder will
submit, a minimum of ten (10) calendar days before the date of the bid
opening, documentation of the particulars of the proposed "equal item ". At a
minimum, the submitted documentation will include:
• Written request with explanation of why the product
should be considered as an equal product.
Material specifications.
• Technical specifications.
Test data.
• Samples.
• Comparison chart of key specifications of the "equal" item against
similar specifications of the specified item.
• Work locations and reference telephone numbers of at least three (3)
locations where the proposed "equal" item has been recently installed
under similar conditions.
• Warranty data.
The Bidder will be notified by the Engineer whether or not the proposed
"equal" product is acceptable to the City five (5) calendar days before the
date of the bid opening. Failure to submit all required documentation and /or
submittal of incomplete documents may result in the City's rejection of the
proposed "equal" product without further consideration.
5 -2 PROTECTION
The following subsection is added to Subsection 5 -2 of the SSPWC.
5 -2.1 INCORRECT LOCATION OF UTILITIES
If the Contractor, while performing the Work, discovers utility facilities not
identified correctly or not shown in the contract plans or specifications bythe
City, the Contractorwill immediately notifythe City and utility owner in writing.
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5 -4 RELOCATION
The following subsection is added to Subsection 5 -4 of the SSPWC.
5 -4.1 RESPONSIBILITY OF UTILITY REMOVAL OR RELOCATION
The City will be responsible to arrange for the removal, repair, or relocation
of existing utilities located within the project limits if such utilities are not
correctly identified in the contract plans or specifications by the City. The City
will have the sole discretion to perform repairs or relocation work or permit
the Contractor to do such repairs or relocation.
5 -5 DELAYS
The following paragraphs are added to Subsection 5 -5 of the SSPWC.
Actual loss, as used in this Subsection, will be understood to include no
items of expense other than idle time of equipment and necessary payments
for idle time of workers, cost of extra moving of equipment, and cost of longer
hauls. Compensation for idle time of equipment and idle time of workers will
be determined by Subsection 5 -5.1 and no markup will be added in either
case for overhead and profit. The cost of extra moving of equipment and the
cost of longer hauls will be paid for as extra work.
The following subsection is added to Subsection 5 -5 of the SSPWC.
5 -5.1 CALCULATING IDLE TIME
Equipment idle time will calculated in accordance with Subsection 3- 3.2.2(c)
and based upon the actual normal working time during which the delay
condition exists, but in no case will exceed 8 hours in any one day. The days
for which compensation will be paid will be the calendar days, excluding
Saturdays, Sundays and legal holidays, during the existence of the delay.
Worker idle time will be calculated in accordance with Subsection 3- 3.2.2(a).
6 -1 CONSTRUCTION SCHEDULE AND COMMENCEMENT OF WORK
Section 6 -1, Construction Schedule and Commencement of Work, is deleted
in its entirety and replaced by the following subsections.
Pre - Construction Meeting: - NA
After contract award, the City will arrange for a pre- construction meeting to
discuss the construction of the project. City will invite utility agencies and the
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contractor will arrange for all of its sub - contractors to attend the meeting.
6 -1.1 CONTRACT SCHEDULE - NA
After notification of award and before starting any work, the Contractor will
submit a Contract Schedule to the Engineerfor review, as required by these
Specifications within fifteen (15) days of award.
6 -1.2 CONTENT OF CONTRACT SCHEDULE
The Contract Schedule, and any updated Contract Schedule, will meet the
following requirements:
1. Schedules must be suitable for monitoring progress of the Work.
2. Schedules must provide necessary data about the time for the
Engineer's decisions. - NA
3. Schedules must be sufficiently detailed to demonstrate adequate
planning for the Work.
4. Schedules must represent a practical plan to complete the Work
within the Contract Time.
5. Schedules must show the critical path method for completing the
Work. - NA
The Engineer's review of the form and general content of the Contract
Schedule and any updated Contract Schedules is only for the purpose of
determining if the listed requirements are satisfied, nothing more.
6 -1.3 EFFECT OF CONTRACT SCHEDULE
The Contract Schedule, and any updated Contract Schedules, will represent
a practical plan to complete the Work within the Contract Time. Extension of
any schedule beyond the Contract Time will not be acceptable. Schedules
showing the Work completed in less than the Contract may be acceptable if
judged by the Engineer to be practical. Acceptance of such a schedule by
the Engineer will not change the Contract Time. The Contract Time, not the
Contract Schedule, will control in determining liquidated damages payable by
the Contractor and in determining any delay.
If a schedule showing the Work completed in less than the Contract Time is
accepted, the Contractor will not be entitled to extensions of the Contract
Time for Excusable Delays or Compensable Delays or to adjustments of the
Contract Sum for Compensable Delays until such delays extend the
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completion of the Work beyond the expiration of the Contract Time.
The Contractor will plan, develop, supervise, control, and coordinate the
performance of the Work so that its progress and the sequence and timing of
Work activities conform to the current accepted Contract Schedule. The
Contractor will continuously obtain from Subcontractors information and data
about the planning for and progress of the Work and the delivery of
equipment, will coordinate and integrate such information and data into
updated Contract Schedules, and will monitor the progress of the Work and
the delivery of equipment. The Contractor will act as the expeditor of
potential and actual delays, interruptions, hindrances, or disruptions for its
own forces and those forces of Subcontractors. The Contractor will
cooperate with the Engineer in developing the Contract Schedule and
updated Contract Schedules.
The Engineer's review and comments about any schedule or scheduling data
will not relieve the Contractor from its sole responsibility to plan for, perform,
and complete the Work within the Contract Time. Review and comments
about any schedule will not transfer responsibility for any schedule to the
Engineer or the City nor imply their agreement with (1) any assumption upon
which such schedule is based or (2) any matter underlying or contained in
such schedule.
The Engineer's failure to discover errors or omissions in schedules that have
been reviewed, or to inform the Contractor that the Contractor,
Subcontractors, or others are behind schedule, or to direct or enforce
procedures for complying with the Contract Schedule will not relieve the
Contractor from its sole responsibility to perform and complete the Work
within the Contract Time and will not be a cause for an adjustment of the
Contract Time or the Contract Sum.
The Contractor will perform the Work in accordance with the currently
accepted Contract Schedule.
6 -1.4 COMMENCEMENT OF CONTRACT TIME
The Contract Time will commence when the City issues a Notice to Proceed.
The Work will start on the date specified in the Notice to Proceed and within
a maximum of fifteen (15) days after the date of the Notice to Proceed, and
be diligently prosecuted to completion with the time provided in the
Specifications.
6 -4 DEFAULT BY CONTRACTOR
The language in subsection 6 -4 is deleted in its entirety and replaced with
the following subsections.
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6-4.1 GENERAL
Should the Contractor fail to begin delivery of material and equipment, to
commence the Work within the time specified, to maintain the rate of delivery
of material, to execute the Work in the manner and at such locations as
specified, or fail to maintain the Work schedule (as determined by the current
accepted Contract Schedule) which will ensure the City's interest, or if the
Contractor is not carrying out the intent of the Contract, the City may serve
written notice upon the Contractor and the Surety on its Faithful Performance
Bond demanding satisfactory compliance with the Contract.
6 -4.2 TERMINATION OF CONTRACTOR'S CONTROL OVER THE WORK
The City may terminate the Contractor's control over the Work without
liability for damages when, in the City's opinion, the Contractor is not
complying in good faith, has become insolvent, or has assigned or
subcontracted any part of the Work without the City's consent. Should such
termination occur, the Contractor will be paid the actual amount due based
on Contract Unit Prices or lump sums bid and the quantity and quality of the
work completed and in place at the time of termination, less damages
caused to the City by the Contractor's action or inaction.
In the event of such termination of control, the City may do any one, or
combination of, the following:
Serve written notice upon the Surety on its Faithful Performance Bond
demanding satisfactory compliance with the Contract. In such event
the Surety will, within 5 days, assume control and perform the Work
as successor to the Contractor;
2. The City may perform the Work itself and deduct the cost thereof from
any payment due to the Contractor;
3. The City may replace the Contractor with a different contractor to
complete the work and deduct the cost thereof from any payment due
to the Contractor.
Nothing herein will waive, or serve as a limitation upon, any additional
remedy the City may have under these Contract Documents or applicable
law.
6 -4.3 SURETY'S ASSUMPTION OF CONTROL
Should the Surety assume any part of the Work, it will take the Contractor's
place in all respects for that part, and will be paid by the City for all work
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performed by it in accordance with the Contract. If the Surety assumes the
entire Contract, all money due the Contractor at the time of its default will be
payable to the Surety as the Work progresses, subject to the terms of the
Contract.
If the Surety does not assume control and perform the Work within 5 days
after receiving notice of cancellation, or fails to continue to comply, the City
may exclude the Surety from the premises. The City may then take
possession of all material and equipment and complete the Work by City's
forces, by letting the unfinished work to another contractor, or by a
combination of such methods. In any event, the cost of completing the Work
will be charged against the Contractor and its Surety and may be deducted
from any money due or becoming due from the City. If the sums due under
the Contract are insufficient for completion, the Contractor or Surety will pay
to the City within 5 days of completion, all costs in excess of the sums due.
The provisions of this subsection will be in addition to all other rights and
remedies available to the City under applicable law.
6 -6 DELAYS AND EXTENSIONS OF TIME
Subsections 6 -6.1 to 6 -6.4 are deleted and replaced with the following
subsections.
6 -6.1 GENERAL
If delays are caused by unforeseen events beyond the control of the
Contractor, such delays will entitle the Contractor to an extension of time as
provided herein, but the Contractor will not be entitled to damages or
additional payment due to such delays except as otherwise provided herein.
Excusable delay may include: war, earthquakes exceeding 3.5 on the Richter
Scale, government regulation, labor disputes outside the contemplation of
the parties, strikes outside the contemplation of the parties, fires, floods,
changes to the Work as identified herein, or other specific events that may
be further described in the Specifications.
Delays to the project caused by labor disputes or strikes involving trades not
directly related to the project, or involving trades not affecting the project as a
whole will not warrant an extension of time.
The City will not grant an extension of time for a delay by the Contractor's
inability to obtain materials unless the Contractor furnishes to the Engineer
documentary proof. The proof must be provided in a timely manner in
accordance with the sequence of the Contractor's operations and accepted
construction schedule.
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Should delays be caused by events other than those included herein, the
Engineer may, but is not required to, deem an extension of time to be in the
City's best interests.
6 -6.2 EXTENSIONS OF TIME
If granted, extensions of time will be based upon the effect of delays to the
critical path of the Work as determined by the current accepted Contract
Schedule. Delays to minor portions of the Work that do not affect the critical
path will not be eligible for extensions of time.
6 -6.3 PAYMENT FOR DELAYS TO CONTRACTOR
Any payment for compensable delay will be based upon actual costs as set
forth in Subsection 5 -5 excluding, without limitation, what damages, if any,
the Contractor may have reasonably avoided. The Contractor understands
that this is the sole basis for recovering delay damages and explicitly waives
ariy right to calculate daily damages for office overhead, profit, or other
purported loss, using different formulas including, without limitation, the
Eichleay Formula.
6 -6.4 WRITTEN NOTICE AND REPORT
If the Contractor desires payment for a delay or an extension of time, it will
give the Engineer written notice of such request not later than the time limit
set forth in the Proposal for submitting a claim after the event or occurrence
giving rise to a delay claim. Failure to submit a written request within such
amount of time will result in the Contractor waiving its delay claim.
Any claim for payment or an extension of time must be in the form required
by the "Claims" sections of these Specifications.
In no event will the City grant the Contractor an extension of time if the delay
is within the Contract Time as identified by the Contract Documents.
6.72 WORKING HOURS
On workdays, Contractor's activities will be confined to the hours between
7:00 a.m. and 4:00 p.m.
6 -7.4 NIGHT WORK
The following paragraph is added to Section 6 -7 of the SSPWC:
The City will not permit Work between the hours of 4 p.m. and 7 a.m. of the
following day unless specifically provided for in the bid documents or unless
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the Contractor receives prior written approval.
6.7.5 WEEKEND AND HOLIDAY WORK
The Engineer may, but is not required to, allow the Contractor to work on
Saturdays, Sundays and City Holidays.
6 -8 COMPLETION AND ACCEPTANCE
Subsection 6 -8 is deleted in its entirety and replaced by the following
subsection:
6 -8 COMPLETION AND ACCEPTANCE
The Work will be inspected by the Engineer for acceptance upon the
Engineer receiving the Contractor's written assertion that the Work is
complete.
If, in the Engineer's judgment, the Work is complete and is ready for
acceptance, the Engineer will accept the Work on behalf of the City in the
manner prescribed by the City. The Engineer will recommend approval of
the Notice of Completion to the City Council. This will be the date when the
Contractor is relieved from responsibility to protect the Work.
All work will be guaranteed by the Contractor against defective workmanship
and materials furnished by the Contractor for a period of 1 year from the date
the Work was completed. The Contractor will replace or repair any such
defective work in a manner satisfactory to the Engineer, after notice to do so
from the Engineer, and within the time specified in the notice. If the
Contractor fails to make such replacement or repairs within the time specified
in the notice, the City may perform this work and the Contractor's sureties will
be liable for the cost thereof.
6 -8.1 GENERAL GUARANTY
The Contractor will remedy any defects in the work and pay for any damage
to other work resulting therefrom, which will appear within a period of one
year from the date of final acceptance of the work unless a longer period is
specified. The owner will give notice of observed defects with reasonable
promptness.
6 -9 LIQUIDATED DAMAGES
Subsection 6 -9, Liquidated Damages, of the SSPWC is deleted in its entirety
and replaced by the following subsections.
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6 -9.1 FAILURE TO COMPLETE WORK ON TIME
If all the work called for under the contract is not completed before or upon
the expiration of the Contract Time, the City will sustain damage. Since it is
and will be impracticable to determine the actual damage which the City will
sustain in the event of and by reason of such delay, it is therefore agreed
that the Contractor will pay to the City the sum specified in the Proposal for
each and every calendar day beyond the time prescribed to complete the
work not as a penalty, but as a predetermined liquidated damage. The
Contractor agrees to pay such liquidated damages as are herein provided,
and in case the same are not paid, agrees that the City may deduct the
amount thereof from any money due or that may become due to the
Contractor under the contract.
Unless otherwise specified, liquidated damages will be $250 per calendar
day.
6 -11 DISPUTES AND CLAIMS: PROCEDURE
6 -11.1 GENERAL
Consistent with PCC § 10240.6, "Claim" means a written demand or
assertion by the Contractor that seeks an adjustment or interpretation of the
terms of the Contract Documents, payment of money, extension of time, or
other relief with respect to the Contract Documents, including a
determination of disputes or matters in question between the City and the
Contractor arising out of or related to the Contract Documents or the
performance of the Work, and claims alleging an unforeseen condition or an
act, error, or omission by the City, the Engineer, their agents or employees.
"Claim" does not mean, and the Claims procedures herein do not apply, to
the following:
Claims respecting penalties for forfeitures prescribed by statute or
regulations, which a government agency is specifically authorized to
administer, settle, or determine.
2. Claims respecting personal injury, death, reimbursement, or other
compensation arising out of or resulting from liability for personal
injury or death.
3. Claims respecting a latent defect, breach of warranty, or guarantee to
repair.
4. Claims respecting stop notices.
If a Claim is subject to the Change Order procedures, the Claim arises upon
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the issuance of a written final decision denying in whole or in part the
Contractor's Change Order Request. If a Claim is not subject to the Change
Order Procedures, the Claim arises when the Contractor discovers, or
reasonably should discover, the condition or event giving rise to the Claim.
6 -11.2 FORM
A Claim must include the following:
1. A statement that it is a Claim and a request for a decision.
2. A detailed description of the act, error, omission, unforeseen
condition, event or other condition giving rise to the Claim.
3. If the Claim is subject to the Change Order procedures, a statement
demonstrating that a Change Order Request was timely submitted
and denied.
4. A detailed justification for any remedy or relief sought by the Claim,
including to the extent applicable, the following:
a) If the Claim involves extra work, a detailed cost breakdown
claimed. The breakdown must be provided even if the costs
claimed have not been incurred when the Claim is submitted.
b) To the extent costs have been incurred when the Claim is
submitted, the Claim must include actual cost records
(including, without limitation, payroll records, material and
rental invoices) demonstrating that costs claimed have actually
been incurred.
c) To the extent costs have not yet been incurred at the time the
Claim is submitted, actual cost records must be submitted on a
current basis not less than once a week during any periods
costs are incurred. A cost record will be considered current if
submitted within 7 days of the date the cost reflected in the
record is incurred. At the Engineer's request, claimed extra
costs may be subject to further verification procedures (such
as having an inspector verify the performance of alleged extra
work on a daily basis).
5. If the Claim involves an error or omission in the Contract Documents:
a) An affirmative representation thatthe errororomission was not
discovered before submitting a bid for the Contract; and
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b) A detailed statement demonstrating that the error or omission
reasonably should not have been discovered by the
Contractor, its Subcontractors and suppliers, before submitting
a bid for the Contract.
6. If the Claim involves an extension of the Contract Time, written
documentation demonstrating the Contractor's entitlement to a time
extension.
7. If the Claim involves an adjustment'of the Contract Sum for delay,
written documentation demonstrating the Contractor's entitlement to
such an adjustment.
A personal certification from the Contractor that reads as follows:
"I, , BEING THE (MUST BE AN
OFFICER) OF (CONTRACTOR NAME),
DECLARE UNDER PENALTY OF PERJURY UNDER CALIFORNIA
LAW, AND DO PERSONALLY CERTIFY AND ATTEST THAT I
HAVE THOROUGHLY REVIEWED THE ATTACHED CLAIM FOR
ADDITIONAL COMPENSATION OR EXTENSION OF TIME, AND
KNOW ITS CONTENTS, AND SAID CLAIM IS MADE IN GOOD
FAITH; THE SUPPORTING DATA IS TRUTHFUL AND ACCURATE;
THAT THE AMOUNT REQUESTED ACCURATELY REFLECTS THE
CONTRACT ADJUSTMENT FOR WHICH THE CONTRACTOR
BELIEVES CITY IS LIABLE; AND, FURTHER, THAT I AM FAMILIAR
WITH CALIFORNIA PENAL CODE 5 72 AND CALIFORNIA
GOVERNMENT CODE § 12650, ET SEQ., PERTAINING TO FALSE
CLAIMS, AND FURTHER KNOW AND UNDERSTAND THAT
SUBMITTING OR CERTIFYING A FALSE CLAIM MAY LEAD TO
FINES, IMPRISONMENT, AND OTHER SEVERE LEGAL
CONSEQUENCES."
6 -11.3 CLAIMS SUBMITTED TO ENGINEER
Within 30 days after the circumstances giving rise to a Claim occur, the
Contractor will submit its Claim to the Engineer for a decision. Regardless of
any Claim submittal, or any dispute regarding a Claim, unless otherwise
directed by the Engineer, the Contractor will not cause any delay, cessation,
or termination of the Work, but will diligently proceed with the performing the
Work in accordance with the Contract Documents. Except as otherwise
provided, the City will continue to make payments in accordance with the
Contract Documents.
6 -11.4 CLAIM IS PREREQUISITE TO OTHER REMEDY
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The Contractor certifies that it is familiar with PCC § 10240.2 and
understands and agrees that submitting a Claim in accordance with these
Specifications is an express condition precedent to the Contractor's right to
otherwise pursue a claim whetherthrough alternative dispute resolution or by
litigation. Should the Contractor fail to submit a claim in accordance with
these Specifications, including the time limits set forth herein, it will waive any
right to a remedy, whether in law or equity, it might otherwise have pursuant
to the Contract Documents or applicable law.
6 -11.5 DECISION ON CLAIMS
The Engineer will promptly review Claims submitted by the Contractor in
accordance with these Specifications. Should the Engineer require
additional supporting evidence to evaluate the claim, the Engineer will
request such additional information in writing. Any such requested data will
be furnished not later than 10 days after the Contractor receives the
Engineer's request.
The Engineer will render a decision not later than 60 days after either
receiving the Claim orthe deadline forfurnishing additional supporting data,
whichever is later. If the Engineer fails to render a decision within the time
period established herein, then the Claim will be deemed denied. The
Engineer's decision will be final and binding unless appealed in accordance
with these Specifications.
The Engineer's decision on a Claim will include a statement substantially as
follows:
"This is a decision pursuant to the General Specifications of your contract. If
you are dissatisfied with the decision, and have complied with the procedural
requirements for asserting claims, you may have the right to alternative
dispute resolution or litigation. Should you fail to take appropriate action
within 30 days of the date of this decision, the decision will be come final and
binding and not subject to further appeal."
6 -11.6 APPEAL OF ENGINEER'S DECISION
Should the Contractor dispute the Engineer's decision, then the Contractor
must appeal that decision to the City's Public Works Director within 30 days
of receiving the Engineer's decision.
The Public Works Director will address disputes or claims within 30 calendar
days after receiving such request and all necessary supporting data. The
Public Works Director's decision on the dispute or claim will be the City's
final decision.
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If the Contractor disputes the Public Works Director's decision, then the
Contractor must demand alternative dispute resolution in accordance with
this Section and the PCC within 30 days of the City's final decision.
6 -11.7 MEDIATION
If the City and the Contractor agree, disputes between the parties may be
submitted to non - binding mediation. If the parties cannot agree to an
alternative form of mediation, then mediation will be administered by the
American Arbitration Association ( "AAA ") under its Construction Industry
Mediation Rules, unless the use of such rules are waived by mutual
stipulation of both parties.
The parties may, but are not required to be, represented by counsel in
mediation.
The requirement for mediation will not alter or modify the time limitations
otherwise provided for claims and no conduct or settlement negotiation
during mediation will be considered a waiver of the City's right to assert that
claim procedures were not followed.
6 -11.8 ARBITRATION
If the City and Contractor do not agree to mediation, then a disputes will be
submitted to neutral non - binding (except as provided herein) arbitration.
Arbitration will be conducted in accordance with PCC § 10240.3. Any
decision rendered by an arbitrator will be consistent with PCC § 10240.8.
The exclusive venue for any arbitration will be in Los Angeles County.
The expenses and fees of the arbitrators and the administrative fees, if any,
will be divided among the parties equally. Each party will pay its own counsel
fees, witness fees, and other expenses incurred for its own benefit.
6 -11.9 WHEN ARBITRATION DECISION BECOMES BINDING
The decision rendered by the arbitratorwill become binding upon the parties
unless appealed to the Los Angeles County Superior Court pursuantto PCC
§ 10240.12 within 30 days of the decision. If subsequent litigation results in
an award to the party appealing the arbitration that is less than or equal to
that of the arbitration decision, or if the litigation results in a decision in favor
of the nonappealing party, then the party appealing the arbitration will pay
the nonappealing party's attorney's fees and court costs.
6 -11.10 APPEAL TO SUPERIOR COURT: WAIVER OF JURY TRIAL
STMOMO SPECIFICATIONS 69 VM004
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Should a party timely object to the arbitration decision, it may file a petition
with the Los Angeles County Superior Court in accordance with California
Code of Civil Procedure ( "CCP ") §§ 1285, et seq. Notwithstanding the
limitations set forth in CCP § 1286.2, the court may vacate, correct, or adjust
an arbitration award, and enterjudgment in accordance with CCP § 1287.4,
for any legal or equitable basis including, without limitation, error of law. The
court will apply the substantial evidence standard of review when considering
the appeal of an objecting party.
BY EXECUTING THESE CONTRACT DOCUMENTS, THE CONTRACTOR
AGREES TO HAVE DISPUTES OR CONTROVERSY CONCERNING THE
CONSTRUCTION, INTERPRETATION, PERFORMANCE, OR BREACH OF
THESE CONTRACT DOCUMENTS, INCLUDING CLAIMS FOR BREACH
OF CONTRACT OR ISSUES OF BAD FAITH DECIDED IN ACCORDANCE
WITH THIS SECTION 6 -11. BOTH THE CITY AND THE CONTRACTOR
WAIVE THEIR RIGHT TO A JURY TRIAL FOR THESE DISPUTES OR
ISSUES.
7 -2 LABOR
The following subsections are added to Subsection 7 -2 of the SSPWC.
7 -2.3 PREVAILING WAGES
The Contractor will post at appropriate conspicuous points at the site of the
project a schedule showing determinations of the Director of Industrial
Relations of the prevailing rate of per diem wages. It will be the Contractor's
responsibility to obtain copies of the prevailing rate of per diem wages. One
source that may be used is the California Department of Industrial Relations
website which is currently located at www.dir.ca.gov, or by calling the
Prevailing Wage Unit at (415) 703 -4774.
Attention is directed to Labor Code §§ 1777.5, 1777.6 and 3098 concerning
the employment of apprentices by the Contractor or any subcontractor.
Labor Code § 1777.5 requires the Contractor or subcontractor employing
tradesmen in any apprenticeship occupation to apply to the joint
apprenticeship committee nearest the site of the public works project and
which administers the apprenticeship program in that trade fora certificate of
approval. The certificate will also fix the ratio of apprentices to journeymen
that will be used in the performance of the contract. The ratio of apprentices
to journeymen in such cases will not be less than one to five except:
a) When employment in the area of coverage by thejoint apprenticeship
committee has exceeded an average of 15 percent in the 90 days
before the request for certificate, or
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b) When the number of apprentices in training in the area exceeds a
ratio of one to five, or
c) When the trade can show that it is replacing at least 1/30 of its
membership through apprenticeship training on an annual basis
state -wide or locally, or
d) When the Contractor provides evidence that the Contractor employs
registered apprentices on all of his contracts on an annual average of
not less than one apprentice to eight journeymen.
The Contractor is required to make contributions to funds established forthe
administration of apprenticeship programs if the Contractor employs
registered apprentices or journeymen in any apprenticeable trade on such
contracts and if other contractors on the public works site are making such
contributions.
The Contractor and any subcontractor will comply with Labor Code §§
1777.5 and 1777.6 in the employment of apprentices.
Information relative to apprenticeship standards, wage schedules and other
requirements may be obtained from the Director of Industrial Relations,
ex- officio the Administrator of Apprenticeship, San Francisco, California, or
from the Division of Apprenticeship Standards and its branch offices.
7 -2.4 RECORD OF WAGES PAID: INSPECTION
Every Contractor and subcontractor will keep an accurate certified payroll
records showing the name, occupation, and the actual per diem wages paid
to each worker employed in connection with the Work. The record will be
kept open at all reasonable hours to the inspection of the body awarding the
contract and to the Division of Labor Law Enforcement. If requested by the
City, the Contractor will provide copies of the records at its cost.
7 -3 LIABILITY INSURANCE
Subsection 7 -3, Liability Insurance, of the SSPWC is deleted in its entirety
and replaced by the following subsections.
7 -3.1 GENERAL
Contractor will procure and maintain for the duration of the contract the
following insurance coverages and limits against claims for injuries to
persons or damage to property which may arise from or in connection with
the performance of the work covered by this agreement by the Contractor, its
STANDARD SPECIFICAMNS IFB IMOU
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133
agents, representatives, employees or subcontractors:
COVERAGE PER OCCURRENCE
Comprehensive General Liability
Business Auto
Workers' Compensation
ISO FORM
GL 00 02 01 85 or 88
CA 00 01 01 87
COMBINED
SINGLE LIMIT
$2,000,000
$2,000,000
Statutory
Contractor will provide endorsements or other proof of coverage for
contractual liability.
Combined single limit per occurrence will include coverage for bodily injury,
personal injury, and property damage for each accident.
If Commercial General Liability Insurance or other form with a general
aggregate limit is used, the policy will be endorsed such that the general
aggregate limit will apply separately to this contract and a copy of the
endorsement provided to the City.
Liability policies will contain, or be endorsed to contain the following
provisions:
GENERAL LIABILITY AND AUTOMOBILE LIABILITY:
The City, its officers, officials, employees, agents, and volunteers will be
covered as insureds as respects: liability arising out of activities performed
by or on behalf of the Contractor; products and completed operations of the
Contractor; premises owned, occupied or used by the Contractor; or
automobiles owned, leased, hired or borrowed by the Contractor. The
coverage will contain no special limitations on the scope or protection
afforded to the City, its officers, officials, employees, agents, or volunteers.
The Contractor's insurance coverage will be primary insurance as respects
the City, its officers, officials, employees, agents, and volunteers. Any
insurance or self- insurance maintained by the City, its officers, officials,
employees, agents, and volunteers will be excess of the Contractor's
insurance and will not contribute with it.
Any failure to comply with reporting provisions of the policies will not affect
coverage provided to the City, its officers, officials, employees, agents and
volunteers.
The Contractor's insurance will apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of the
insurer's liability.
WORKERS' COMPENSATION:
STANDARD SPECIFICATIONS 118 /I W,
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The insurer will agree to waive all rights of subrogation against the City, its
officers, officials, employees and volunteers for losses arising from work
performed by the Contractor for the City.
ALL COVERAGES:
Each insurance policy required by this subsection will be endorsed to state
that coverage will not be suspended, voided, cancelled by either party,
reduced in coverage or in limits except after thirty (30) days written notice by
certified mail, return receipt requested, has been given to:
CITY CLERK
City of El Segundo
350 Main Street
El Segundo, CA 90245
Notwithstanding the foregoing, the endorsement may state that insurance
may be cancelled upon ten (10 day notification for non - payment of premium.
The Contractor will provide the City with updated proof of insurance should
the Contract Time extend beyond the policy expiration date.
All liability insurance will be on an occurrence basis. Insurance on a claims
made basis will be rejected. Any deductibles or self- insured retentions will
be declared to and approved by City. The insurer will provide an
endorsement to City eliminating such deductibles or self- insured retentions
as respects the City, its officials, employees, agents, and volunteers.
Except for Workers Compensation Insurance, Contractor will furnish to City
certificates of insurance and endorsements on forms acceptable to the City's
City Attorney, duly authenticated, giving evidence of the insurance coverages
required in this contract and other evidence of coverage or copies of policies
as may be reasonably required by City from time to time.
Certificate /endorsement for Workers Compensation Insurance will be
furnished on State Comp Fund or other industry standard form. Except for
worker's compensation insurance, all insurance required herein will be
placed with insurers with a Best's Rating of not less than A:VII. Worker's
compensation insurance policies will meet the requirements of California law.
All subcontractors employed on the work referred to in this contract will meet
the insurance requirements set forth for Contractor. Contractor will furnish
certificates of insurance and endorsements for each subcontractor at least
five days before the subcontractor entering the job site, or Contractor will
furnish City an endorsement including all subcontractors as insureds under
its policies.
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Except as provided in Subsection 6 -10, the Contractor will save, keep and
hold harmless the City, its officers, officials, employees, agents and
volunteers from all damages, costs or expenses in law or equity that may at
any time arise or be claimed because of damages to property, or personal
injury received by reason of or in the course of performing work, which may
be caused by any willful or negligent act or omission by the Contractoror any
of the Contractor's employees, or any subcontractor. The City will not be
liable for any accident, loss or damage to the work before its completion and
acceptance, except as provided in Subsection 6 -10.
The cost of such insurance will be included in the various items of work in the
Contractor's bid and no additional compensation for purchasing insurance or
additional coverages needed to meet these requirements will be allowed.
In the event that any required insurance is reduced in coverage, cancelled
for any reason, voided or suspended, Contractor agrees that City may
arrange for insurance coverage as specified, and Contractor further agrees
that administrative and premium costs may be deducted from payments due
to the Contractor. Contractor will not be allowed to work until alternate
coverage is arranged.
7 -3.2 RESPONSIBILITY FOR DAMAGE
In addition to the provisions of Subsection 7 -3 of the SSPW C as between the
City and Contractor, Contractorwill take and assume all responsibility for the
work as stated herein or shown on the plans.
The Contractor will bear all losses and damages directly or indirectly
resulting to it, to the City, its officers, employees, and agents, or to others on
account of the performance or character of the work, unforeseen difficulties,
accidents, traffic control, job site maintenance, or any other causes
whatsoever.
The Contractorwill assume the defense of and indemnify and save harmless
the City of El Segundo, its officers, employees, and agents, from and against
any and all claims, losses, damage, expenses and liability of every kind,
nature, and description, directly or indirectly arising from the performance of
the contract orwork, regardless of responsibility for negligence, and from any
and all claims, losses, damage, expenses, and liability, howsoeverthe same
may be caused, resulting directly, or indirectly from the nature of the work
covered by the contract, regardless of responsibility for negligence, to the
fullest extent permitted by law. In accordance with Civil Code § 2782,
nothing in this Subsection 7 -3.2 or in Subsection 7 -3 of the Standard
Specifications will require defense or indemnification for death, bodily injury,
injury to property, or any other loss, damage or expense arising from the sole
negligence or willful misconduct of the City, or its agents, servants or
STANDARD SPECIFICATIONS 148 O 001
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3325 • :'0
independent contractors who are directly responsible to the City, or for
defects in design furnished by such persons. Moreover, nothing in this
Subsection 7 -3.2 or in Subsection 7 -3 will apply to impose on the Contractor,
or to relieve the City from, liability for active negligence of the City.
The City does not, and will not, waive any rights against the Contractorwhich
it may have by reason of the aforesaid hold harmless agreements because
of the acceptance by the City, or deposit with City by Contractor, of any
insurance policies described in Subsection 7 -3 of the Standard
Specifications. This hold harmless agreement by the Contractor will apply to
all damages and claims for damages of every kind suffered, or alleged to
have been suffered by reasons of any of the aforesaid operations of
Contractor, or any subcontractor, regardless of whether or not such
insurance policies are determined to be applicable to any of such damages
or claims for damages.
No act by the City, or its representatives in processing or accepting any
plans, in releasing any bond, in inspecting or accepting any work, or of any
other nature, will in any respect relieve the Contractor or anyone else from
any legal responsibility, obligation or liability he might otherwise have.
7 -5 PERMITS
The following paragraph will be added to Subsection 7 -5 of SSPWC:
The Contractor will apply for permits required by the City Building Safety
Division. These permits will be issued on a "no -fee" basis. However, the
Contractor must pay for and obtain all other permits from other governmental
and utility agencies necessitated by their operations.
All bonding fees, (overweight and oversized vehicle permit fees) inspection
permit fees or other fees charged or. required for such permits must be paid
by the Contractor. These costs will be included in the bid item provided. If no
bid item is included, costs will be included in the various items of work, and
no additional payment will be allowed.
7 -8.1 CLEANUP AND DUST CONTROL
Subsection 7 -8.1, Cleanup and Dust Control, of the SSPWC is deleted in its
entirety and replaced by the following subsections.
7 -8.1.1 GENERAL
On any construction project requiring trenching within public streets and for
which total trenching is in excess of 500 feet, the Contractor will be required
to sweep the worksite utilizing a pick -up type street sweeper a minimum of
STANDARD SPECIFICATIONS 148 4I 004
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once daily.
7 -8.1.2 WATERING
Water for the laying of dust caused by Contractor's operations or the
passage of traffic through the work will be applied as necessary or as
directed by the Engineer.
7 -8.6 WATER POLLUTION CONTROL
This section is supplemented by the addition of the following requirements
which establish storm water and urban runoff pollution prevention controls.
(a) Storm or construction generated water containing sediment such as,
construction waste, soil, slurry from concrete /asphalt concrete saw
cutting operations, clean up of concrete transit mixers or other
pollutants from construction sites and parking areas will be retained or
controlled on site and will not be permitted to enter the storm drain
system.
(b) Temporary sediment filtering systems such as sandbags, silt fences,
or gravel berms will be utilized to trap sediment so that only filtered
water enters the City's storm drain system. Proper clean up and
disposal of settled sediment and the filtering system will be the
responsibility of the CONTRACTOR.
(c) Discharge of concrete transit mixer wash water on to approved dirt
areas (sub -grade area designated for new concrete construction for
example) is acceptable. Discharge on to private property, parkway
areas, or the street is not permitted.
(d) Plastic or other impervious covering will be installed where
appropriate to prevent erosion of an otherwise unprotected area,
along with any other runoff control devices deemed appropriate by the
City.
(e) Excavated soil stored on the site will be covered in a manner that
minimizes the amount of sediments running into the storm drain
system, street or adjoining properties.
(f) No washing of construction or other industrial vehicles and equipment
will be allowed adjacent to a construction site. During the rainy
season (October 15 to April 15), Contractor will keep at the
construction site sufficient materials and labor to install temporary
sediment filtering systems and other water pollution prevention control
measures. These control measures will be in place and maintained
STANDARD SPECIFICATIONS I -B 4W O04
11-B-30 138
by the Contractor on a daily basis on days when construction is not in
progress due to rain.
(h) All costs associated with water pollution control will be borne by the
Contractor. Any expense incurred by the City to expeditiously
respond to storm drain contamination resulting from Contractor's
failure to implement water pollution control measures will be charged
to the Contractor.
7 -9 PROTECTION AND RESTORATION OF EXISTING IMPROVEMENTS
Section 7 -9 is supplemented by the following additional requirements:
Where existing traffic striping, pavement markings, and curb markings are
damaged or their reflectively reduced by the Contractor's operations, such
striping or markings will also be considered as existing improvements and
the Contractor will replace such improvements.
Relocations, repairs, replacements, or re- establishments will be at least
equal to the existing improvements and will match such improvements in
finish and dimensions unless otherwise specified.
7 -10 PUBLIC CONVENIENCE AND SAFETY
Section 7 -10 is supplemented by the following additional requirements:
Unless otherwise specified all traffic control will be performed in accordance
with the Work Area Traffic Control Handbook (WATCH) Latest Edition,
published by Building News, 3055 Overland Avenue, Los Angeles, CA
90034, telephone 310 -474 -7771.
7 -10.1 TRAFFIC AND ACCESS
The Contractorwill notify the occupants of all affected properties at least 48
hours prior to any temporary obstruction of access. Vehicular access to
property line will be maintained except as required for construction for a
reasonable period of time. No overnight closure of any driveway will be
allowed except as permitted by the Engineer.
At least one (1) twelve (12) foot wide traffic lane will be provided for each
direction of travel on all streets at all times except as permitted by the
Engineer. The traffic lanes will be maintained on pavement, and will remain
unobstructed. All work requiring that a lane be closed or a lane moved right
or left will be noticed to the traveling public by use of City approved lighted
arrow boards.
139
STANDARD SPECIFICATIONS 148 U 001
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a,:
Clearances from traffic lanes will be five feet to the edge of any excavation
and 2 feet to the face of any curb, pole, barricade, delineator, or other
vertical obstruction.
One four (4) foot wide paved pedestrian walkway will be maintained in the
parkway area on each side of all streets. The clearance from the pedestrian
walkway to any traffic lane will be five (5) feet. Pedestrians and vehicles will
be protected from all excavations, material storage, and /or obstructions by
the placement of an adequate number of lighted barricades (minimum two
(2)) at each location, one (1) at each end of the obstruction or excavation),
which will have flashing lights during darkness. Barricades will be Type I or
Type II per Section 7 -3 and lights will be Type A per Section 7 -6 of the "Work
Area Traffic Control Handbook' (WATCH).
7 -10.2 STREET CLOSURES, DETOURS BARRICADES
Street closures will not be allowed except as specifically permitted by the
Engineer.
The Contractor will prepare any traffic control or detour plans that may be
required as directed by the Engineer. Lane transitions will not be sharper
than a taper of thirty (30) to one (1).
Temporary traffic channelization will be accomplished with barricades or
delineators. Temporary striping will not be allowed unless specifically
permitted by the Engineer. The Contractor will prepare any plans that may be
required for temporary striping to the satisfaction of the Engineer. In no event
will temporary striping be allowed on finish pavement surfaces, which are to
remain.
Where access to driveway or street crossings need to be maintained,
minimum 1 1/4 inch thick steel plating will be used to bridge the trench. All
steel plating will have temporary asphalt concrete 1:12 minimum sloped
ramps to assist vehicles to cross comfortably over the plates and have a
non -skid surface. Plates subject to vehicle high traffic speeds and in
residential areas will be secured by welding at the discretion of the Engineer.
7 -10.5 PROTECTION OF THE PUBLIC
It is part of the service required of the Contractor to make whatever
provisions are necessary to protect the public. The Contractor will use
foresight and will take such steps and precautions as his operations warrant
to protect the public from danger, loss of life or loss of property, which would
result from interruption or contamination of public water supply, interruption
of other public service, or from the failure of partly completed work or partially
removed facilities. Unusual conditions may arise on the Project which will
STANDARD SPECIFICATIONS 140 49ft000
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require that immediate and unusual provisions be made to protect the public
from danger or loss of life, or damage to life and property, due directly or
indirectly to prosecution of work under this contract.
Whenever, in the opinion of the Engineer, an emergency exists against
which the Contractor has not taken sufficient precaution forthe public safety,
protection of utilities and protection of adjacent structures or property, which
may be damaged by the Contractor's operations and when, in the opinion of
the Engineer, immediate action will be considered necessary in order to
protect the public or property due to the Contractor's operations under this
contract, the Engineer will order the Contractor to provide a remedy for the
unsafe condition. If the Contractor fails to act on the situation immediately,
the Engineer may provide suitable protection to said interests by causing
such work to be done and material to be furnished as, in the opinion of the
Engineer, may seem reasonable and necessary.
The cost and expense of said labor and material, together with the cost and
expense of such repairs as are deemed necessary, will be borne by the
Contractor. All expenses incurred by the City for emergency repairs will be
deducted from the progress payments and the final payment due to the
Contractor. Such remedial measures by the City will not relieve the
Contractor from full responsibility for public safety.
7 -15 HAZARDOUS MATERIAL
The following Subsection will be added to Section 7 of the SSPWC:
For any excavation, which extends more than fourfeet below existing grade,
the Contractor will promptly, and before the conditions are disturbed, notify
the Engineer, in writing, of 1) any material that the Contractor believes may
be hazardous waste, as defined in Health and Safety Code § 25117, which is
required to be removed to a Class I, Class 11, or Class III disposal site in
accordance with provisions of existing law, 2) subsurface or latent physical
conditions at the site differing from those indicated, or 3) unknown physical
conditions at the site of any unusual nature, different materially from those
ordinarily encountered and generally recognized as inherent in work of the
character provided for in the Contract Documents.
After receiving notice from the Contractor, the Engineer will promptly
investigate any condition identified by the Contractor as being hazardous.
The rights and obligations of the City and the Contractor with regard to such
conditions (including, without limitation, the procedures for procuring change
orders and filing claims) will be specified by the provisions of Subsection 3 -4
(Changed Conditions) of the SSPWC.
If a dispute arises between the City and the Contractor whether the
STPNDMD SPECIFI TCNS$4B"M3 At
11 -13-33
as 3P e F;
conditions materially differ, involve hazardous waste, or cause a change in
the Contractor's cost or time required for performance of the work, the
Contractor will not be excused from any scheduled completion date provided
for by the contract, but will proceed with all work to be performed under the
contract. The Contractor will retain all rights provided by Subsection 3 -5,
Disputed Work, of the SSPWC.
If the Engineer determines that material called to the Engineer's attention by
the Contractor is hazardous waste, or if the Engineer otherwise discovers the
existence of hazardous waste, the Contractorwill be responsible for removal
and disposal of the hazardous waste by qualified personnel and appropriate
equipment in the manner required by law as directed by the Engineer,
subject to the provisions of Section 3 (Changes in Work) of the SSPWC.
9 -2 LUMP SUM WORK
Subsection 9 -2, Lump Sum Work, of the SSPWC is deleted in its entirety
arid replaced by the following:
Items for which quantities are indicated as "Lump Sum," "L.S.," or "Job" will
be paid for at the price indicated in the Proposal. Such payment will be full
compensation for all costs for labor, equipment, materials and plant
necessary to furnish, construct and install the lump sum item of work,
complete, in place, and for all necessary appurtenant work, including, but not
limited to, all necessary cutting, patching, repair and modification of existing
facilities, and clean up of site.
Contractor will furnish three copies of a detailed schedule, which breaks
down the lump sum work into its component parts and cost for each part, in a
form and sufficiently detailed as to satisfy Engineer that it correctly
represents a reasonable apportionment of the lump sum. This schedule is
subject to approval by Engineer as to both the components into which the
lump sum item is broken down, and the proportion of cost attributable to
each component.
This schedule will be the basis for progress payments forthe lump sum work.
9 -3.2 PARTIAL AND FINAL PAYMENTS
The text of Subsection 9 -3.2 of the Standard Specifications is hereby deleted
and replaced with the following:
The closure date forthe purpose of making partial progress payments will be
the last working day of each month. The Contractor will prepare the partial
payment invoice with measurement of the work performed through the
closure date and submit it to the CITY for approval.
STANDARD SPECIFICATIONS 118 Q9*SS1 14 ti
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3325 • ��
When work is complete, the Contractor will determine the final quantities of
the work performed and prepare the final progress payment, and submit it to
the Engineer for approval.
It will take a minimum of thirty -five (35) calendar days from the date of
approving the Contractor's invoice to make the payment to the Contractor.
However, payments will be withheld pending receipt of any outstanding
reports required by the contract documents, or legal release of filed Stop
Payment Notices against the Contractor. In addition, the final progress
payment will not be released until the Contractor returns the control set of
Plans and Specifications showing the as -built conditions.
The full ten percent (10 %) retention will be deducted from all progress
payments. The Contractor will make a payment request for the retained
amount, for approval by the City, upon field acceptance of the work by the
City Engineer. The City Engineer upon field acceptance and receipt of the
final as -built plans and any other reports or documents required to be
provided by the Contractor will process a recommendation to the City Council
for acceptance of the work. Not less than thirty -five (35) calendar days from
the City Council acceptance of the work, the Contractor's final payment will
be made provided Stop Payment Notices or other claims have not been filed
against the Contractor and /or the City by material suppliers, sub - contractors,
other governmental agencies, and private property owners. Until these Stop
Payment Notices are released and claims are resolved the stop
payment/claim amount will be withheld from the final payment.
The Contractor, however, may receive interest on the retention forthe length
of construction, or receive the retention itself as long as the retention is
substituted with escrow holder surety or equal value.
At the request and expense of the Contractor, surety equivalent to the
retention may be deposited with the State Treasurer, or a State or Federally
chartered bank, as the escrow agent, who will pay such surety to the
Contractor upon satisfactory completion of the contract.
Pursuant to PCC § 22300, the Contractor may substitute securities for
retention monies held by the City or request that the City place such monies
into an escrow account. The Contractor is notified, pursuant to PCC §
22300, that any such election will be at the Contractor's own expense and
will include costs incurred by the City to accommodate the Contractor's
request.
Progress payment paid by the City as contemplated herein, will be contingent
upon the Contractor submitting, in addition to any additional documents, an
updated Contract Schedule in the form prescribed by these Contract
STANDARD SPECIFICATIONS IFB <ry M,
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Documents. Failure of the Contractor to submit an acceptable updated
Contract Schedule will result in the City withholding partial payment, without
liability to the City, until such an acceptable updated Contract Schedule is
submitted. Nothing herein will allow the Contractor to suspend or slow
progress of the Work.
9 -3.3 DELIVERED MATERIALS
Materials and equipment delivered or stored, but not incorporated into the
work, will not be approved for progress payments.
100 -1 TERMINATION OF AGENCY LIABILITY
Before receiving final payment, the Contractor will execute a Release on
Contract" form which will operate as, and will be a release to the City, the
City Council, and each member of the City Council and their agencies, from
all claims and liability to the Contractor for anything done or furnished for, or
relating to, the work or for any act of neglect of the City of any person relating
to or affecting the work, except the claim against the City for the remainder, if
any there be, of the amounts kept or retained as provided in Subsections 9 -3
of the Standard Specifications and except for any unsettled claims listed on
said form which have been filed in compliance with the requirements for
making claims.
STANDMD SPECIFICATIONS 1484/ 004
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332
SECTION III — SPECIAL PROVISIONS
A. STANDARDS
All work shall be performed in accordance with the Standard Specifications for
Public Works Construction, 2003 edition, including supplements thereto,
American Public Works Association Standard Plans for Public Works
Construction, the City of El Segundo Public Works Department Specifications for
Sidewalks, Curb and Gutters, and Driveway Approaches, and the City of El
Segundo Engineering Division Specifications for Removal and Replacement of
Surface Improvements within Public Right -of -way, unless otherwise shown on
the plans, or as specified herein.
2. All work shall be permitted in accordance with the California Uniform Plumbing
Code as specified herein.
3. Strict compliance with State and local safety codes will be enforced.
B. EXAMINATION OF JOB SITE
The CONTRACTOR shall make a detailed physical inspection of the site before
submitting his proposal. It is understood that the CONTRACTOR has satisfied himself
regarding existing conditions and existing access conditions which may affect bid prices
for the proposed work.
C. INSPECTION
On all questions relating to quantities, the acceptability of material, or work, the
execution, progress or sequence of work, and the interpretation of specifications
or plans, the decision of the Engineer is final and binding, and shall be precedent
to any payment under the contract.
2. All work and materials are subject to inspection and approval of the Engineer.
3. Legible copies of material /weight certification shall be turned over to the
inspector on a daily basis.
4. Inspection of the work shall not relieve the CONTRACTOR of the obligations to
fulfill all conditions of the contract.
D. TRAFFIC CONTROL
The CONTRACTOR shall place and maintain signs, cones, barricades with
blinking amber lights, flagmen, detour signs, and other traffic control devices in
conformance with the "WATCH" manual, latest edition, and as directed by the
Engineer.
III -A -1
.1 4,j
3325 ,
2. Streets shall be kept open for traffic at all times.
E. PEDESTRIAN SAFETY
Pedestrians shall be protected from all excavations and /or obstructions by the placement
of an adequate number of lighted barricades (minimum two (2) at each location, one (1)
at each end of the obstruction or excavation), which shall have flashing lights during
darkness. Barricades shall be Type 1 or Type II per Section 7 -3 and lights shall be Type
A per Section 7 -6 of the "Work Area Traffic Control Handbook" (WATCH).
F. USE OF PRIVATE PROPERTY
The use of any private property by the CONTRACTOR is prohibited. The prohibited
uses include, but not limited to, CONTRACTOR'S use of water, electricity or natural gas
from the private property, and storage of material or equipment and turning around/
parking of his vehicles on private property.
G. WORK SCHEDULE
Hours of work shall be limited to 7:00 a.m. through 5:00 p.m., weekdays only,
unless otherwise specified.
H. METER BOXES
The CONTRACTOR shall make adjustments to meter boxes and electrical pull boxes to
match new grade. Cost of this work shall be included in the bid.
PROTECTION OF EXISTING IMPROVEMENTS
Existing public and /or private improvements, adjacent property, utility and other
facilities and trees and plants that are not to be removed shall be protected from
injury or damage as provided for in Subsection 7 -9 of Part 1 of Standard
Specifications.
2. Any pavement, curb, or sidewalk removed shall be reconstructed by the
CONTRACTOR at his own expense and no additional compensation will be
allowed.
DISPOSAL OF REMOVALS
All removed materials shall become the property of the CONTRACTOR and shall be
legally disposed of by him away from the site of work.
Note: There are no authorized dump facilities within the City of El Segundo.
III -A -2
.14 t.r
332
K. WASHING OF CONCRETE TRANSIT MIXERS
Concrete transit mixers shall not be washed out on alleys, streets, or parking lots. Also
refer to Section 7 -8.6 Water Pollution Control (II -B -7) for additional requirements.
L. SURFACE RESTORATION
Permanent restoration of surface improvements shall be completed no later than five (5)
calendar days after completion of the repair.
M. REPAIRS, REPLACEMENTS AND CLEANUP
The CONTRACTOR shall repair at his own expense any damage any property of
the City, or of adjacent private property caused by him in the performance of the
work.
2. Materials and equipment shall be removed from the site as soon as they are no
longer necessary. Upon completion of the work and before final inspection, the
entire worksite shall be cleared of equipment, unused materials, and rubbish so
as to present a satisfactory clean and neat appearance.
3. Work will not be approved until proper cleanup is accomplished.
4. All cleanup costs shall be absorbed in the CONTRACTOR'S bid.
III -A -3 14
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: New Business
AGENDA DESCRIPTION:
Consideration and possible action regarding adding additional signage on Franklin Avenue
indicating that the cross traffic on Richmond Street does not stop at the intersection.
COUNCIL ACTION:
1) Receive and File; and /or,
2) Alternatively, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
The intersection at Richmond St. and Franklin Ave. currently has stop signs in the eastbound
and westbound directions on Franklin Ave. and no stop signs on Richmond St. A request has
been made to add two additional stops signs in the northbound and southbound directions on
Richmond St. creating a four -way stop.
The City Traffic Committee, made up of staff from Engineering and Police Department, has
reviewed the request and performed an analysis based on Caltrans established warrant
guidelines to justify four -way stop signs. On November 3, 2004 a 24 -hour traffic count was
completed so that data can be used in the analysis.
on next
ATTACHED SUPPORTING
1) 24 -hour traffic Count;
2) Stop Sign Analysis
FISCAL IMPACT: NONE
Operating Budget:
$6,000.00
Amount Requested:
$140.00
Account Number:
001 -400- 4205 -5204
Project Phase:
Appropriation Required:
NO
BY:
SeImO =J
REVIEWED BY:
1, City Man
of Planning and Building Safety/ Acti
DATE:
:ity Er
DATE:
2004
/t�°Y
13
14 Fj
BACKGROUND & DISCUSSION (continued):
The request did not satisfy the Caltrans established minimum warrant criteria. One of the
criteria is that the intersection has a history of a least five accidents on record in a twelve
month period which may have been prevented if a four -way stop signs existed at the
intersection. The satisfaction of the criteria alone would justify four -way stops signs. The
Richmond St. and Franklin Ave. intersection had one accident in the year 2000.
Even though the request did not satisfy the warrant requirements, the Traffic Committee
recommends installing additional signage on the stops signs on Franklin Ave. that indicate the
cross traffic does not stop. This would help alleviate any confusion with regards to the
intersection.
P: \PUBLIC WORKS \COUNCIL STAFF REPORTS \DRAFT 12 -07 -04 Four -way stop at intersection of Richmond and Franklin..doc
14 �;
RICHMOND STREET- FRANKLIN AVENUE
TRAFFIC COUNTS
Northbound Southbound Eastbound Westbound
(Richmond St.) (Richmond St.) (Franklin Ave.) (Franklin Ave.)
0:00
5
1
3
1:00
q
11
1
9
2:00
0
1
6
3:00
1
1
1
5
4:00
p
3
1
5:00
16
38
4
4
10
6
6:00
16
39
27
29
7:00
11
54
42
25
8:00
29
58
37
16
9:00
31
50
22
34
10:00
25
32
25
26
11:00
42
80
22
27
12:00
60
109
40
50
13:00
59
70
21
79
14:00
63
87
31
65
15:00
44
64
32
44
16:00
78
60
26
35
17:00
85
73
29
49
18:00
74
56
37
66
19:00
53
60
23
59
20:00
30
39
20
49
21:00
16
25
23
22:00
17
7
7
30
23:00
p
7
7
15
7
10
TOTAL
759
1025
474
758
iJ(j
STOP SIGN ANALYSIS
(Based on Caltrans Traffic Manual Section 4 -03)
DATE OF TRAFFIC COUNT: 11 -03 -04
DATE OF TRAFFIC COMMITTEE: 11 -23 -04
INTERSECTION: Richmond Street / Franklin Avenue
EXISTING CONTROLS: STOP signs for eastbound and westbound Franklin Avenue
REQUEST: STOP signs for northbound and southbound Richmond Street
REQUESTED BY:
1. Accidents /year on record of a type susceptible to correction by four -way STOP signs.
Required Value: 5 /year
Observed Value: ?/Year (see Note 1)
Is the Requirement Satisfied ?: No
2. (a) Total average volume of vehicles entering the intersection from all approaches per hour
for any eight (8) hour period of an average day.
Required Value: 500 veh /hour
Observed Value: 223 veh /hour (see Note 2)
Is the Requirement Satisfied ?: No
(b) Total average volume of vehicles from the Minor Street per hour for the same eight (8)
hour period stated in Category No. 2.
Required Value: 200 veh /hour
Observed Value: 86 veh /hour (see Note 2)
Is the Requirement Satisfied ?: No
(c) Average peak hour delay per vehicle to Minor Street vehicles to be measured only
if both Items 2 and 3 are satisfied.
Required Value: 30 seconds /veh
Observed Value: seconds /veh
Is the Requirement Satisfied ?: Not applicable
NOTE 1: This value is based on available Police Department record information for the past
three (3) years.
NOTE 2: These counts were made during a 24 -hour period and averaged for the 8 hour
period of heaviest traffic volumes.
COMMENTS: Either Item No. 1 or all Item Nos. 2, a, b, and c together must be satisfied to justify the
requested STOP signs.
CONCLUSION: The above intersection does not satisfy the minimum criteria needed to justify the
requested STOP signs.
15-1
Sbp SV^ Rlu..111 -24-00 Rihm N Street mM Fl..MW Hams.
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: REPORTS —City Clerk
AGENDA DESCRIPTION:
Consideration and possible action requesting Council consensus to cancel the January 4,
2005 City Council Meeting.
RECOMMENDED COUNCIL ACTION:
(1) Approve cancellation of the January 4, 2005 Meeting;
(2) Alternatively discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
The date of the first regularly scheduled City Council meeting in 2005 is Tuesday, January 4.
Because City Hall is scheduled to be closed for certain traditional holidays and because of the
additional meeting workload and scheduled travel plans, it would be difficult to meet legal
noticing requirements and to properly prepare for the meeting.
It is my recommendation that Council approve the cancellation of the January4, 2005 regularly
scheduled meeting.
ATTACHED SUPPORTING DOCUMENTS:
None
FISCAL IMPACT: N/A
Operating Budget:
Amount Requested:
Account Number:
Project Phase:
Appropriation Required:
ORIGINATED BY: DATE:
Cindy Mo esen, City Clerk
DATE:
It -30 -off
Mary StreM, City Manager
Will
15
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDAHEADING: Reports — Council Member Jim Boulgarides
AGENDA DESCRIPTION:
Consideration and possible action to request staff to study the feasibility of changing the current
street sweeping program to accommodate an "alternating side" street sweeping schedule on all
streets citywide where street sweeping parking restrictions are posted.
RECOMMENDED COUNCIL ACTION:
1) Direct staff to evaluate the feasibility of changing the current street sweeping schedule to
reflect an "alternating side" sweeping schedule; and 2) Alternatively, discuss and take other
action related to this item.
BACKGROUND & DISCUSSION:
The city's current street sweeping schedule allows for most streets to be cleaned on both sides
on the same day. Approximately, ten - percent of the City's streets are posted for "alternating
side" sweeping, which calls for one side to be swept one day and the other side to be swept on
a different day. For some residents who live on streets that are swept on both sides on the
same day, it is burdensome to move their cars to a different location on street sweeping day.
To address such issues, some cities have adopted an "alternate side" street sweeping schedule
that encompasses all streets.
The City has recently increased its street sweeping fines, which has brought renewed attention
to the issue. I am recommending that staff be instructed to study the issue and bring the item
back to the Council for further consideration. Among the issues to be examined are resident
convenience, costs associated with implementing alternative side sweeping, scheduling issues,
potential safety issues and other items determined by staff to be relevant.
ATTACHED SUPPORTING DOCUMENTS: None
FISCAL IMPACT:
Operating Budget: N/A
Amount Requested:
Account Number:
Project Phase:
Appropriation Required: _Yes _ No
ORIGINATED BY: DATE: December 1, 2004
ouncil Member Jim Boulgarides
REVIEWED BY: DATE: December 1, 2004
ary enn, City Manager
13,15
EL SEGUNDO CITY COUNCIL
AGENDA ITEM STATEMENT
MEETING DATE: December 7, 2004
AGENDAHEADING: Reports — Council Member Busch
Consideration and possible action regarding announcement of an agreement between the Tree
Musketeers and the Los Angeles Street Tree Division for the landscaping maintenance and
improvements on the City's borders.
RECOM
UOUNCIL ACTION:
1) Receive and file the Council's report;
2) Alternatively, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
On January 29, 2000, Tree Musketeers along with members of the Rotary Club spearheaded
the beautification of the western gateway leading from the beach to downtown El Segundo by
planting 100 trees along both sides of West Grand Avenue to Vista del Mar, on property
belonging to the City of Los Angeles. This group of trees is commonly referred to as the
"Millennium Trees."
Tree Musketeers and volunteers were to maintain and water the trees. On May 7, 2004, the
Department of Water & Power ( "DWP ") trimmed the young trees. To prevent such occurrences
and assure that the trees remain an amenity, the Tree Musketeers and the Los Angeles Street
Tree Division have entered into a formal agreement, a copy of which is attached, which
delineates the responsibility for the planting, removal, replacement and general maintenance of
the Millennium Trees.
With the Millennium Tree agreement in place, the Tree Musketeers plan to continue with their
vision to beautify all entrances to El Segundo. On Arbor Day, March 12, 2004, 100 of 450 trees
planned for the beautification of the Los Angeles median strip along Imperial Highwayjust north
of El Segundo, will be planted.
ATTACHED SUPPORTING DOCUMENTS: Letter agreement dated August 31, 2004, between Tree
Musketeers and the Los Angeles Street Tree Division for landscaping maintenance and
improvements on the City's borders.
FISCAL IMPACT:
Operating Budget: N/A
Amount Requested:
Account Number:
Project Phase:
Appropriation Required: _Yes _ No
ORIGINATED BY: DATE: November 30, 200
Council Member Eric Busc V<12�
REVIEWED BY: DATE: Novembea , 2004
Mary Strenn, City1 Ma gerfa� r
1" 16
Mission: To Empower Young People
.F �-.5 L�7Ln1rJJ to be Leaders of Environmental and
Social Change in Earth's Communities
Educate * Plant * Conserve * Beautify * Preserve
August 31, 2004
George Gonzalez
Superintendent, Street Tree Division
City of Los Angeles
600 S. Spring St., 12' Floor
Los Angeles, CA 90014
Dear Mr. Gonzalez,
On behalf of everyone at Tree Musketeers, let me begin by thanking you for Street Tree Division's support of our
efforts to "green" West Grand Avenue in the City of Los Angeles adjacent to DWP's Scattergood Plant
(`Scattergood ") with trees planted by the community in 2000 ("Millennium Trees ", "trees "). In response to the July
15, 2004 letter from Dominick Rubalcava, President of the Los Angeles Department of Water and Power
Commission, the intent of this letter is to summarize our mutual understanding of the arrangements for maintaining
the Millennium Trees. We begin with the following premises and itemize respective responsibilities as follows:
• Consistent with a 1956 Transfer of Control in which DWP gave an easement to the Board of Public Works, the
parkway and any trees within it fall under the jurisdiction of the Street Tree Division;
As such, any agency, must apply to the Street Tree Division for a permit to plant, remove or perform any
maintenance on trees in the parkway; and
The Street Tree Division has granted permission for Tree Musketeers, a California nonprofit corporation, to
plant and maintain parkway trees on West Grand Ave.
Tree Musketeers will:
• Prune, fertilize, mulch, and otherwise maintain the trees consistent with professional urban forestry standards;
• Perform weed and litter abatement in the immediate vicinity of the trees;
• Starting September 15, 2004 operate the valve that provides water to the drip irrigation system;
• Remove and replace trees with appropriate permits from the Board of Public Works;
Provide and operate a drip irrigation system to deliver water to the trees;
• Communicate with the Street Tree Division's designated liaison with regard to volunteer events or other unusual
activity in the parkway; and
• Inform Street Tree Division of any problems encountered.
Department of Public Works. Bureau of Street Services Street Tree Division for the City of Los Angeles will•
• Designate a liaison to facilitate communication about the Millennium Trees with Tree Musketeers;
Inform Tree Musketeers of any pending projects or activities that affect the trees on the West Grand Ave. parkway;
Provide to Tree Musketeers assistance and consultation as appropriate for proper maintenance and health of
trees consistent with professional urban forestry standards; and
• Monitor usage of water along the parkway.
We will assume that you and all recipients of this letter share our understanding unless any concerns or objections
are communicated in writing within 30 days of the date of this letter.
Sincerely,
Count 'gngd,
J
Tara Church
Chair
Geor e o 1
Supe i endent, Stree Tree Services
Cc: David Kissinger, Councilmember Cindy Miscikowski, Eric Busch, El Segundo City Council, Henry Sloan, The
Department of Water & Power for the City of Los Angeles, Hamid Mejad, Scattergood- Plant Manager
J ,J
136 Main St. * El Segundo, CA 90245 * 310.322.0263 * FAX 310.322.4482 * info @treemusketeers.org * w treemusketeers.org
EL SEGUNDO CITY COUNCIL
AGENDA ITEM STATEMENT
AGENDA
MEETING DATE: December 7, 2004
AGENDA HEADING: Report —Mayor Pro Tern Gaines
Consideration and possible action regarding a new appointment to the Golf Course sub-
committee.
(Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1. Authorize the appointment of John Van Hook to the Golf sub - committee,
replacing Bill Bue, to represent the El Segundo's Men's Golf Club.
2. Alternatively, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
Currently the City Council Golf sub - committee is comprised of the Finance Director, the
Recreation and Parks Director, the City Attorney, and two City Council members; Mayor Pro-
Tern John Gaines, Council Member Carl Jacobson, Bill Bue, Laura Freeman and Debbie
Bundy Recreation and Parks Commission Chair. Mr. Bue has asked to step down and
recommended another golfer to take his place.
This committee would meet on a monthly basis over the next year as the City transitions to a
new golf course operator.
ATTACHED SUPPORTING DOCUMENTS: None
FISCAL IMPACT: None
Operating Budget:
Account Number:
Project Phase:
Appropriation Required
ORIGINATED:
Pro -Tem
Yes _ No
DATE:
Mary Str/ n, City Manager X0/Y
1� 17
0
EL SEGUNDO CITY COUNCIL MEETING DATE: December 7, 2004
AGENDA ITEM STATEMENT AGENDA HEADING: Council Report — Mayor Kelly McDowell
AGENDA DESCRIPTION:
Consideration and possible action regarding the Approval of Amended Joint Exercise of
Powers Agreement for Insurance and Risk Management Purposes with the Independent Cities
Risk Management Authority (ICRMA.) (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
(1) Staff is recommending the City Council adopt Resolution Amending the Joint Exercise
of Powers Agreement for Insurance and Risk Management with the ICRMA.
(2) Designate its representatives to the ICRMA Governing Board and the separate Risk
Management Programs in which this City participates.
(3) Direct that a certified copy of the Resolution be forwarded to ICRMA's General
Manager.
(4) Alternatively discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
This City has been a member of the Independent Cities Risk Management Authority
( "ICRMA "), which is a Joint Powers Authority, since July 17, 1990. The ICRMA provides
separate Risk Management Programs for liability, workers' compensation, property and
earthquake, health, and other coverage's for the 29 Member Cities, some or all of which this
City participates in.
Continued on next page.
ATTACHED SUPPORTING DOCUMENTS
Fifth Amended Joint Powers of Agreement (JPA)
Comparison of 1998 JPA and October 2004 Amended JPA
Resolution Amending the Joint Exercise of Powers Agreement with the ICRMA.
FISCAL IMPACT:
Operating Budget: n/a
Amount Requested: We
Account Number: n/a
Project Phase: n/a
Appropriation Required: —Yes X No
McDowell
BY:
A 15 "e' 18
Mary Strenn, City Manager
BACKGROUND & DISCUSSION
The Joint Exercise of Powers Agreement for Insurance and Risk Management Purposes
( "JPA ") was last amended in 1998. Since then, the Certificates of Participation ( "COP ") have
been retired and, due to the creation of JPA Bylaws, other changes are necessary to reflect
the manner in which the ICRMA conducts its business. The ICRMA Governing Board, at its
meeting on October 13, 2004, approved a Fifth Amended JPA which deletes references to the
COP and makes other changes as shown on the "Comparison of 1998 Joint Powers
Agreement and October 2004 Amended Joint Powers Agreement," which accompanies this
report. The Fifth Amended JPA will become effective after it is approved by two- thirds of the
ICRMA members. The ICRMA Governing Board is requesting that this City Council approve
the amended JPA by adopting the Resolution which accompanies this staff report. It would
also be appropriate to reconfirm this City's appointees to the ICRMA Governing Board. The
Governing Board provides policy direction for all of the ICRMA committees and, among its
duties, appoints the General Manager, admits, sanctions and expels members, adopts the
budget, approves and amends Program Bylaws, establishes, amends and terminates
programs, approves the Memorandum of Coverage, elects members to committees, settles
claims and approves dissolution of ICRMA.
iJ�
FIFTH AMENDMENT TO
JOINT EXERCISE OF POWERS AGREEMENT
FOR INSURANCE AND RISK MANAGEMENT PURPOSES
This Fifth Amendment To Joint Exercise Of Powers Agreement For Insurance
and Risk Management Purposes ( "Agreement ") is executed by and among the
public entities, hereafter referred to as Member or Members, each of which is
organized and existing under the laws of the State of California and is a signatory
to this Agreement and listed in Appendix "A ", which is attached hereto and made
a part hereof. This Agreement, dated October 13, 2004, for identification
purposes, amends the Joint Exercise of Powers Agreement For Insurance and
Risk Management Purposes dated August 12, 1998.
RECITALS
This Agreement is predicated upon the following facts:
The following State laws, among others, authorize the Members to enter into this
Agreement:
1. Labor Code Section 3700, permitting a Member to fund its own Workers'
Compensation claims;
2. Government Code Section 990, permitting a Member to insure itself
against tort or inverse condemnation liability;
1474484 (MS WORD) 000602 -9000 15 (j
t
3. Government Code Section 990.4, permitting a Member to provide
insurance and self- insurance in any desired combination;
4. Government Code Section 990.6, permitting the proper costs for self-
insurance to be charged against each Member and authorizing the
Governing Board to make premium payments for such coverage in an
amount such Governing Board determines to be necessary to provide
such coverage;
5. Government Code Section 990.8, permitting two or more Members to
enter into an agreement to jointly fund such expenditures under the
authority of Government Code Sections 6500 et seq.;
6. Government Code Section 6500 et seq., permitting two or more Members
to jointly exercise, under an agreement, any power which is common to
each of them.
NOW, THEREFORE, for and in consideration of the mutual benefits, covenants,
and agreements set forth in this Agreement, the Members agree as follows:
ARTICLE 1.
1.1 Pursuant to Article I (commencing with Section 6500) of Chapter 5 of
Division 7 of Title 1 of the Government Code of the State of California, the
147448.4 WS WORD) 000602 -9000
2 i 6 O
Members hereby create a public entity, separate and apart from the
Members, to be known as the Independent Cities Risk Management
Authority, hereinafter referred to as "ICRMA" or the "Authority ". Pursuant
to Government Code Section 6508.1, the debts, liabilities, and obligations
of the Authority shall not constitute debts, liabilities, or obligations of any
Member.
ARTICLE 2. PURPOSE.
2.1 The purpose of creating this Authority is to exercise the powers of the
Members to jointly accomplish the following:
2.1.1 Develop effective Risk Management Programs to reduce the
amount and frequency of their losses.
2.1.2 Develop Risk Management Programs of insurance to protect
Members from the effects of catastrophic or unexpected
losses. Such programs shall include, but not be limited to,
coverages for losses arising out of Tort Liability, Workers'
Compensation, Health Benefits, and the ownership or use of
real or personal property.
2.1.3 Design Risk Management Programs of the Authority on a
pooled or self- funded basis whereby the Members share
some portion, or all, of the costs of the program losses.
1474484 (MS WORD) 000602 -9000
3 16.1
2.1.4 Jointly purchase insurance, excess insurance. or
reinsurance and /or develop alternative financial
arrangements for the purpose of transferring risk of loss to
commercial insurers.
2.1.5 Assist Members to the maximum extent authorized by law to
secure long term solutions enabling the Authority to provide
adequate protection to Members against catastrophic, or
greater than expected, claims and to attract major reinsurers
for the purpose of transferring risk.
2.1.6 Jointly secure administrative and other services including,
but not limited to, general administration, underwriting, risk
management, loss prevention, claims adjusting, data
processing, brokerage, accounting, and legal services when
related to any of the other purposes.
ARTICLE 3. DEFINITIONS
3.1 The following definitions shall apply to the provisions of this Agreement
and the By -Laws of the Authority and Risk Management Programs:
3.1.1 "Agreement' shall mean this Agreement, as it may be
amended from time to time, creating the Independent Cities
Risk Management Authority.
147448.4 (MS WORD) 000602 -9000
4 162
3.1.2 "Board" or "Governing Board" shall mean the governing body
of the Authority.
3.1.3 "By- Laws" shall mean the rules governing the management
of the Authority and each individual Risk Management
Program.
3.1.4 "Claim(s)" shall mean demand(s) complying with the
requirements of California Government Code Section 910
and made against the Member arising out of occurrences
which are covered or alleged to be covered by the
Authority's Memorandums of Coverage, or policies of
insurance.
3.1.5 "Fiscal Year" shall mean the period of time commencing on
July 1 of each year, and thereafter ending on June 30 each
following year.
3.1.6 "Governing Documents" shall mean this Agreement, the By-
Laws of the Authority and each Risk Management Program,
the Memorandum of Coverage and any other document
stipulated as a Governing Document in the By -Laws or by
action of the Governing Board.
3.1.7 "Insurance" shall mean insurance or reinsurance purchased
by the Authority to cover losses for its Members.
1474484 WS WORD) 000602 -9000
5 163
3.1.8 "Member" shall mean any Municipal Corporation or public
entity authorized to be a member of a Joint Powers
Authority, which is a party to this Agreement and is
participating in one or more Risk Management Programs.
3.1.9 "Memorandum of Coverage" shall mean the document or
documents issued by the Authority specifying the types of
coverages and limits provided to the Members.
3.1.10 'Program Year" shall mean a period of time in which each
program shall be segregated for ease in determining
coverage premiums.
3.1.11 'Participation" or 'Participating" shall mean a Member has
elected to jointly participate in the management of a specific
risk and is a member of that Risk Management Program.
3.1.12 'Risk Management' shall mean the process of identifying,
evaluating, reducing, transferring, and eliminating risks. Risk
Management includes, but is not limited to, various methods
of funding claims payments, purchasing insurance, legal
defense of claims, controlling losses, and determining self -
insured retention levels and the amount of reserves for
potential claims.
147448.4 (MS WORD) 000602 -9000
6 164
3.1.13 'Risk Management Program " shall mean those coverage
programs of risk sharing, insurance, and risk management
services created by the Authority to manage specific Risk
Management Programs, i.e. "Liability Risk Management
Program ".
ARTICLE 4. PARTIES TO THE AGREEMENT AND RESPONSIBILITIES OF
MEMBERS.
4.1 Each Member represents and warrants that it intends to, and does hereby,
contract with all other Members listed in Appendix "A ", and any new
members admitted to the Authority pursuant to Article 16. Each Member
also represents and warrants that the withdrawal or expulsion of any
Member, pursuant to Article 14 or 15, shall not relieve any Member of its
rights, obligations, liabilities or duties under this Agreement or the
individual Risk Management Programs in which the Member participates.
4.2 Each Member agrees to be bound by and to comply with all of the terms
and conditions of the Governing Documents and any Resolution or other
action adopted by the Governing Board as they now exist or may
hereinafter be adopted or amended. Each Member assumes the
obligations and responsibilities set forth in the Governing Documents.
ARTICLE 5. GOVERNING BOARD.
5.1 The Authority shall be governed by a Governing Board the composition of
which shall be set forth in the Authority's By -Laws. Immediately upon
admission of a new Member pursuant to Article 16, the Member shall be
147448.4 NS WORD) 000602 -9000
7 16 5
entitled to appoint a Representative to the Governing Board and an
alternate Representative and, if desired, a substitute alternate
Representative, each of whom shall meet the parameters set forth in the
Authority's By -Laws. Decisions of the Member representative, or the
Governing Board in his /her absence, shall be binding on the Member.
5.2 The Member Representative and /or alternate Representative or substitute
alternate Representative shall be removed from the Governing Board
upon the occurrence of any one of the following events: (1) the expulsion
or withdrawal of the Member from the Authority; (2) the death or
resignation of the Member Representative; (3) the Authority receives the
written notice from the Member that the Member Representative is no
longer a member of the governing body of the Member or as otherwise
provided in the Authority's By -Laws.
5.3 Pursuant to Government Code Section 6505.6, the Governing Board shall
designate an officer or employee, or officers and employees, to receive,
deposit, invest, and disburse the property of the Authority pursuant to
Government Code Sections 6505 and 6505.5. The Governing Board shall
fix the amount of the fidelity bond to be filed by such public officer(s)
and /or employee(s).
ARTICLE 6. BOARD MEETINGS AND RECORDS
6.1 Regular Meetings. The Governing Board and all standing committees
shall hold meetings at the location and time set forth in the By -Laws of the
147448.4 NS WORD) 000602 -9000
8 166
Authority and each individual Risk Management Program.
6.2 Ralph M. Brown Act. All meetings of the Governing Board, and appointed
committees, including without limitation, regular, adjourned regular, and
special meetings, shall be called, noticed, held, and conducted in
accordance with the Ralph M. Brown Act (Section 54950 et. seq. of the
Government Code).
6.3 Minutes. Minutes of regular, adjourned regular, and special meetings of
the Authority shall be kept under direction of the Secretary. As soon as
possible after each meeting, the Secretary shall forward copies of the
minutes to each Governing Board member.
6.4 Quorum. A majority of the members of the Governing Board is a quorum
for the transaction of business. However, less than a quorum may adjourn
from time to time. A vote of the majority of a quorum at a meeting is
sufficient to take action.
ARTICLE 7. OFFICERS.
7.1 The Governing Board shall elect a president, vice - president, Treasurer
and Secretary from among its members. The manner of election and term
of office of elected officers and their authority and responsibilities shall be
as set forth in the Authority By -Laws. If any of the officers cease to be a
Member's representative, the resulting vacancy shall be filled as provided
in the Authority By -Laws. The Governing Board may appoint such other
officers as it considers necessary.
147448.4 WS WORD) 000602 -9000
9 16`,'
ARTICLE 8. POWERS.
8.1 The Authority shall have the powers common to its Members and is
authorized, in its own name, to do all acts necessary and to exercise such
common powers to fulfill the purposes of this Agreement referred to in
Article 2 including, but not limited to, each of the following:
8.1.1 Finance through the issuance of Bonds or other financial
instruments of indebtedness, self- insurance reserve funds
necessary or convenient for the implementation of this
Agreement.
8.1.2 Incur debts, liabilities, and obligations.
8.1.3 Acquire, hold, or dispose of real and personal property.
8.1.4 Receive contributions and donations of property, funds,
services, and other forms of assistance from any source.
8.1.5 Sue and be sued in its own name.
8.1.6 Employ agents and employees.
8.1.7 Acquire, construct, manage, maintain, or operate buildings,
works, or improvements.
8.1.8 Lease real or personal property, including that of a Member.
8.1.9 Receive, collect, and disburse monies.
147448.4 (MS WORD) 000602 -9000 168
8.1.10 Invest money in the treasury of the Authority in the same
manner and on the same conditions as local agencies
pursuant to Government Code Section 53601.
8.1.11 Exercise all other powers necessary and proper to carry out
the provisions of this Agreement.
8.1.12 Develop and implement Risk Management Programs.
8.1.13 Jointly purchase for the benefit of Members, insurance,
excess insurance, reinsurance, and enter into agreements
for the benefit of Members, for the purpose of transferring
risk of loss to commercial insurers or reinsurers or other
insurance pools.
ARTICLE 9. RISK MANAGEMENT PROGRAMS
9.1 The Governing Board shall establish Risk Management Programs as
provided in the Authority's By -Laws.
9.2 No Risk Management Program shall become operational, or possess any
authority, until the proposed Risk Management Program By -Laws have
been approved by the Governing Board. The voting on the approval of
By -Laws shall be restricted to Governing Board Member representatives
of the particular Risk Management Program. Approval of the By -Laws and
any amendments thereto shall be as provided in the By -Laws of the
individual Risk Management Programs. On approval of the By -Laws, the
147448.4 (MS WORD) 000602 -9000
11 169
various Risk Management Programs shall become operational and will
have all of the powers specifically delegated to them by the Governing
Board.
ARTICLE 10. BUDGET
10.1 The Governing Board shall adopt an annual budget not later than 30 days
prior to the beginning of each Fiscal Year.
ARTICLE 11. ANNUAL AUDIT AND REVIEW
11.1 The Governing Board shall cause an annual financial audit of the accounts
and records to be made and filed as provided in the Authority's By -Laws
and the laws of the State.
ARTICLE 12. ESTABLISHMENT AND ADMINISTRATION OF FUNDS.
12.1 Funds of the Authority may be commingled for investment and
administration purposes. However, each Risk Management Program shall
be accounted for separately on a full accrual basis.
12.2 The Governing Board shall establish the policy for warrants drawn to pay
demands against the Authority.
12.3 The coverage for each Program Year of each Risk Management Program
shall be as specified in the Memorandum of Coverage or policies of
insurance for that Program Year of the Risk Management Program.
ARTICLE 13. WITHDRAWAL.
13.1 Any Member which enters a Risk Management Program may withdraw
147448.4 (MS WORD) 000602 -9000 170
12
from that Risk Management Program and may at a later time seek to
renew participation in said Program subject to the terms and conditions as
set forth in the By -Laws of that particular Risk Management Program.
13.2 A Member is no longer a party to the Authority or this Agreement upon its
withdrawal from all of the Authority's Risk Management Programs.
ARTICLE 14. EXPULSION.
14.1 The Governing Board may expel any Member from the Authority and /or
from a Risk Management Program at any time for material breaches of the
Governing Documents. Such expulsion shall be as provided in the By-
Laws of the Authority or each Individual Risk Management Program.
ARTICLE 15. TERMINATION.
15.1 This Agreement shall continue until terminated by vote or written consent
of two- thirds of the Members provided, however, that this Agreement and
the Authority shall continue to exist for the purposes of disposing of all
claims, the distribution of assets, and any other functions necessary to
conclude the affairs of the Authority.
15.2 Upon termination of this Agreement, all assets of the Authority shall be
distributed only among the Members that have been participants in its
Risk Management Programs, including any of those Members which
previously withdrew or were expelled pursuant to Articles 13 and 14 of this
Agreement, in accordance with and proportionate to their net premium
payments made during the term of this Agreement. The Governing Board
147448.4 (MS WORD) 000602 -9000
13
l ��
shall determine such distribution within six months after the last claim
covered by this Agreement has been finalized.
15.3 The Governing Board is vested with all powers of the Authority for the
purpose of concluding and dissolving the business affairs of the Authority.
These include the power to require those Members which were Risk
Management Program participants at the time of any particular occurrence
which was covered or alleged to be covered under the Memorandum(s) of
Coverage or policies of insurance to pay their share of any additional
amount of premium deemed necessary by the Governing Board for the
final disposition of all claims and expenses associated with such loss.
ARTICLE 16. NEW MEMBERS.
16.1 Any governmental agency, organized and operating under the laws of the
State of California which is authorized to participate in a joint powers
authority under the Government Code may become a member of the
Authority by complying with the requirements of the Authority By -Laws.
ARTICLE 17. LIABILITY OF THE AUTHORITY
17.1 Each Member agrees to indemnify, save and defend the Authority and all
other Members harmless from and against all claims, losses, and
damages, including legal fees and expenses, arising out of any breach or
default on the part of such Member in performance of any of its obligations
under this Agreement, or any act or negligence of such Member or any of
its agents, contractors, servants, employees or licensees with respect to
1474484 (MS WORD) 000602 -9000
14 172
this Agreement. No indemnification is made under this Section for claims,
losses or damages, including legal fees and expenses, arising out of the
willful misconduct, negligence or breach of duty under this Agreement by
the Authority or a Member or their officers, employees, agents or
contractors.
17.2 The Representatives to the Governing Board and to each of the Risk
Management Programs and any officer, employee, contractor, or agent of
the Authority shall use ordinary care and reasonable diligence in the
exercise of their power and in the performance of their duties under this
Agreement.
17.3 Funds of the Authority may be used to defend, indemnify, and hold
harmless the Authority and any member of the Governing Board, any
member of a Risk Management Program, and any employee of the
Authority for their actions taken within the scope of their duties while
acting on behalf of the Authority. Nothing herein shall limit the right of the
Authority to purchase insurance to provide such coverage as is
hereinabove set forth.
ARTICLE 18. NOTICES.
18.1 Notices to each Member under this Agreement shall be sufficient if mailed
to its respective address on file with the Authority. Any Member may
designate any other address in substitution of the foregoing address to
which such notice will be given at any time by giving five days written
147448.4 (MS WORD) 000602 -9000
15 173
notice to the Authority and all other Members.
ARTICLE 19.
19.1 This Agreement may be amended at any time by vote of two- thirds of the
Members acting through their governing body. Amendments to the
individual Risk Management Program By -Laws require the two -third vote
of the Governing Board members representing Members of that Risk
Management Program.
ARTICLE 20. SEVERABILITY.
20.1 Should any portion, term, condition, or provision of this Agreement be
decided by a court of competent jurisdiction to be illegal or in conflict with
any law of the State of California, or be otherwise rendered unenforceable
or ineffectual, the validity of the remaining portions, terms, conditions, and
provisions shall not be affected thereby.
ARTICLE 21. AGREEMENT COMPLETE
21.1 The foregoing constitutes the full and complete Agreement of the parties.
There are no oral understandings or agreements not set forth in writing
herein.
147448.4 NS WORD) 000602 -9000
16 1'14
ARTICLE 22. TERM OF AGREEMENT
22.1 This fifth amended Agreement shall become effective upon the Authority
receiving notice of the approval by the governing body of two- thirds of the
Members.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first written above.
City of
a
Title
Executed before me this
Cit
day of
City Clerk
200
(City Seal)
1474484 (MS WORD) 000602 -9000
17 %v
APPENDIX "A"
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
MEMBER CITIES
1.
Alhambra
16.
Hermosa Beach
2.
Arcadia
17.
Huntington Park
3.
Azusa
18.
Inglewood
4.
Baldwin Park
19.
La Habra
5.
Bell
20.
Lynwood
6.
Buena Park
21.
Manhattan Beach
7.
Chino
22.
Monrovia
8.
Colton
23.
Monterey Park
9.
Culver City
24.
Redondo Beach
10.
Downey
25.
San Fernando
11.
El Monte
26.
South Gate
12.
El Segundo
27.
Upland
13.
Fullerton
28.
Vernon
14.
Glendora
29.
Whittier
15.
Hawthorne
147448.4 (MS WORD) 000602 - 9000 17 6
INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY
FIFTH AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT
FOR INSURANCE AND RISK MANAGEMENT PURPOSES
147448.4 (MS WORD) 000602 -9000
1 '7
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint
Terms in Existing Joint Powers
Terms in Proposed Amendment to Joint
Article
Powers
Agreement
Agreement (Dated 8/12/1998)
Powers Agreement (Draft of 9/17/2004)
of
Authority By-
Section
Laws
Opening
States agreement is executed by
States agreement is executed by public
paragraph
Municipal Corporations, referred
entities, referred to as "Member or
to as "Member Cities"
Members"
Recital A.
*r Reference to Member or Members
being organized and existing under laws
of State of California incorporated into
opening paragraph instead of under
"Recitals" heading.
Recital B.1 -6
_Recitals 1 through 6. Same as prior
State Laws
Agreement except substitutes "Member"
for " Cities."
Paragraphs in Proposed Amendment are numbered differently.
"Member Cities" replaced in Proposed Amendment by "Member or Members"
Article I
Includes provisions that:
Article I.I. Same as Article I, except
Creation of
(1) Member City may separately
these provisions were omitted from
ICRMA
contract for or assume
proposed amendment.
responsibility for specific debts,
liabilities, or obligations of
Authority.
(2) Pursuant to Govt code 6509
Authority shall be restricted in
exercise of powers in same
manner as City of Manhattan
Beach is restricted; or if
Manhattan Beach ceases to be
Member City, then Authority
shall be restricted in exercise of
power in same manner as City of
San Fernando; if City of San
Fernando ceases to be a Member
City, Governing Board shall
designate appropriate Member
City.
1494021 000602 -9000 09,20/2004 - s27 pm
Y
78
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint
Powers
Terms in Existing Joint Powers
Terms in Proposed Amendment to Joint
Article of
Agreement
Agreement (Dated 8/12/1998)
Powers Agreement (Draft of 9/17/2004)
Authority By-
Section
Laws
Article II.
Purpose
Article 2.1 1 through 2.1.3. Same as
A. - C
prior Agreement
Article II.
Purpose
Article 2.1.4. Same as prior Agreement,
D
except adds authorization to "Jointly
purchase insurance... and /or develop
alternative financial arrangements for
the purpose of transferring risk of
loss..."
Article H.
Provides for Member Cities to
Article 2.1.5. Omits language regarding
Purpose
secure long -term financial base
Certificates of Participation. States
E.
from issuance of Certificates of
instead, "Assist Members to the
Participation, revenues from
maximum extent authorized by law to
which will be used for
secure long term solutions enabling the
establishing financial reserves to
Authority to provide adequate protection
enable Authority to provide
to Members" against catastrophic claims
protection to Member Cities
and to attract major reinsurers for
against catastrophic claims and to
purpose of transferring risk.
attract major reinsurers for
purpose of transferring risk.
Article II.
Purpose
Article 2.1.6. Same as prior Agreement
F.
except adds "Jointly secure
administrative and other services
including... general administration
underwriting, risk management...."
Article 111.
Definitions
Agreement
Board or Governing Board
Articles 3.1 .1 - 3.1.5. Same as prior
A. - C.
By -Laws
Agreement.
Article III.
Definitions
Claim(s)
Article 3.1 4. Adds: "'Claim(s)' shall
D.
mean demands complying with the
requirements of California Government
Code Section and made against the
Member arising out of occurrences..."
149402.1 000602 -9000 092012004 - 127 pm
�'7J
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint
Powers
Terms in Existing Joint Powers
Agreement (Dated 8/12/1998)
Terms in Proposed Amendment to Joint
Powers
Article of
Agreement
Agreement (Draft of 9/17/2004)
Authority By-
Section
Laws
Article III.
Definitions
Fiscal Year
Article 3.1.5. Same as prior Agreement.
E.
ArticlIdefined
: "`ICRMA "' shall mean
"ICRMA" is defined in Article 1 1.
Definiendent
Cities Risk
ent Authority created
greement"
ng Documents" not
Article 3.1.6. Provides: "`Governing
proposed Agreement.
Documents' shall mean this Agreement,
the By -Laws of the Authority and each
Risk Management Program, the
Memorandum of Coverage and any
other document stipulated as a
Government Document in the By -Laws
or by action of the Governing Board."
Article III.
Definition G.
Insurance
Article 3 1 7. Same as III.G. except
adds that "`Insurance' shall mean
insurance or reinsurance purchased by
Authority..."
Article III.
Defines "Member City" as any
Article 3.1.8. Defines "Member" as any
Definition H.
Municipal Corporation or any
Municipal Corporation or nubhc entity
Joint Powers Authority whose
authorized to be a member of a Joint
membership consists only of
Powers Authority, which is a party to
Municipal Corporations, which is
this Agreement
a party to this Agreement
4tticle III.
Definition
Memorandum of Coverage
Articles 3.1.9 - 3 1.11. Same as prior
Agreement.
lrticle III.
)efinition
Program Year
Article 3.1.10. Omitted "usually twelve
months" in definition of program year.
14940]_1 000602 -9000 0920/2004 -527pm
l 80
ICRMA - Proposed Changes to Joint Powers A¢reement
Existing Joint
Powers
Terms in Existing Joint Powers
Terms in Proposed Amendment to Joint
Article of
Agreement
Agreement (Dated 8/12/1998)
Powers Agreement (Draft of 9/17/2004)
Authority By-
Section
Laws
Article M.
Participation
Article 3.1.11. Same as prior
Definition
Agreement.
K.
Article III.
Risk Management
Article 3.1.12. Same as prior
Definition
I
agreement, except adds that Risk
'
Management includes "but is not limited
LO" various methods of funding claims
payments, etc.
Article III.
Risk Management Program
Article 3.1.13. Same as prior
Definition
Agreement.
M.
Article IV.
Parties to
Article 4 1. Same as prior agreement,
Agreement
except adds at end of paragraph,
"...rights,
obligations, liabilities, or
duties under this Agreement or the
individual Risk Ma na ement Programs
in which the Member participates."
Article 4.2 added. "Each Member
agrees to be bound by and to comply
with all of the terms and conditions of
the Governing Documents and any
Resolution or other action adopted by
the Governing Board as they now exist
or may hereinafter be adopted or
amended. Each Member assumes the
obligations and responsibilities set forth
n the Goveming Documents."
149402.1 000602 -9000 0920/2004 -527 pm
it.
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint
Powers
Terms in Existing Joint Powers
Agreement (Dated 8/12/1998)
Terms in Proposed Amendment to Joint
Powers
Article of
Agreement
Agreement (Draft of 9 /17/2004)
Authority By-
Section
Laws
Article V.
Governing
Provides that Authority shall be
by
Article 5.1. Provides that Authority
Article 5.1 -
Board
governed a Governing Board
shall be governed by a Governing Board
Governing
comprised of one Representative
"the composition of which shall be set
Board
from each Member City and sets
forth in the Authority's By- Laws." Also
forth terms for appointment of
provides that New Member admitted
same and of alternate
pursuant to Article 16 shall be entitled to
Representatives and substitute
appoint Representative and alternate
alternate Representatives by
Representative per Authority By -Laws.
Cities and voting.
Article V.
Provides in part for Member City
le 5.2. Section is samj as in prior
Governing
Board
Representative's (+ alternate's,
ement, except this lanage re City
and substitute alternate's)
esentative's removal m
[Government
second ¶
removal from Governing Board if
Board was omitted
Authority (1) receives written
notice from Member City of the
removal of the Member City
Representative or alternate
Representative or substitute
alternate Representative
Article V.
Provides Member City
This language was omitted from
Governing
Representative, alternate or
proposed Amendment.
Board
substitute Representative are not
third ¶
entitled to compensation;
however, Governing Board may
authorize reimbursement may
authorize reimbursement of
expenses.
Article V.
Governing
Article 5.3. Same as prior agreement,
Board
except instead of "The Authority shall
fourth ¶
fix the amount of the fidelity bond... ", it
reads, "The Governing Board shall affix
the amount of the fidelity bond.."
Article VI.
Regular
States Governing Board shall
hold at least one regular meeting
Article 6.1. Refers to By -Laws for
location
Article 5.2 -
Meetings
each quarter of each year. Date,
and time for Governing Board
and all standing committees to hold
Meetings of the
A.
place and time to be fixed by
meetings.
Governing
Governing Board resolution.
Board
1494021 000602 -9000 09/20/2004 -5:27 pm
y""' T
149402.1 000602 -9000 0920/2004 -527 pm
M
ICRMA - Proposed
Changes to Joint Powers Agreement
Existing Joint
Powers
Terms in Existing Joint Powers
Agreement (Dated 8/12/1995)
Terms in Proposed Amendment to Joint
Article of
Agreement
Powers Agreement (Draft of 9/17/2004)
Authority By-
Section
Laws
Article VI.
B.
Provides "Each meeting of
Article 6.2. Same as prior agreement,
Ralph M.
Governing Board" to be
conducted in accordance with the
except provides that "All me_ etines of
the Governing
Brown Act
Ralph M. Brown Act.
Board and appointed
committees" be conducted in accordance
with the Ralph M. Brown Act.
Article VI.
C. Minutes
Article 6.3. Same as prior agreement,
except omits provision that Secretary
forward to each Governing Board
member and each City Clerk copies of
the minutes.
Article VI.
D. Quorum
Article 6.4. Same as prior agreement.
Article VII
Officers
that Governing Board
t president and
Article 7.1. Provides that the Governing
Article 6 -
vice
; provides for filling of
Mpresident
Board shall elect a President, Vice-
president, Treasurer and Secretary,
Officers of the
n the event the
and
the manner of election, term of office of
Governing
Board
or vice present ceases
ember; provides that
elected officers, their authority and
6.1 -6.4.5
pdent act in president's
responsibilities, and filling of vacancy of
any officer who ceases to be Memb
absence or president's inability to
a er's
representative shall be set forth in
act, and provides for appointment
Authority BY-1aws.
of secretary and treasurer and
other officers Governing Board
considers necessary.
Article VIIL
A.
Finance through issuance of
Article 8.1.1. Same as prior agreement,
Powers
Certificates of Participation
except instead of "Certificates of
Participation," provides for Finance
through issuance of `Bonds or other
financial instrument of indebtedness."
Articles VIII.
B. - M.
Articles g 1 2 g.1_13 Same as prior
Powers
agreement.
149402.1 000602 -9000 0920/2004 -527 pm
M
14 9402 1 000602 -9000 09/20/2004 527 pm
18
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint
Powers
Terms in Existing Joint Powers
Agreement (Dated 8/12/1998)
Terms in Proposed Amendment to Joint
Powers
Article of
Agreement
Agreement (Draft of 9 /17/2004)
Authority By-
Section
Laws
Article IX
first ¶
Provides that Governing Board
shall by resolution establish
Article 9.1. Refers to By -Laws for
Article 13
Risk
a
Risk Management Program for
establishment of Risk Management
Programs.
Risk
Manage-
each Coverage Program
Management
ment
implemented by Authority.
Programs
Programs
Article IX
second ¶
Provides for a two - thirds vote of
members of Governing Board
Article 9.2. Provides that "Approval of
Article 13
Risk
the By -Laws and any amendments
Risk
Manage-
representing cities which are
members of a particular Risk
thereto shall be as provided in the By-
Management
meet
Mana ement Pro am for
g gr
Laws of the individual Risk
Management Program."
Programs
Programs
approval of proposed Risk
Management Program By -Laws
icle IX
ond ¶
Provides that when entering into
transactions
Article 9.2. This provision was omitted
[Risk
authorized by
from proposed amendment.
Government Board, the Risk
nage-
Management Program shall use
nt
the Risk management Program
grams
title and refer to Authority, i.e.,
contract entered into by Workers'
Compensation Risk Management
Program of ICRMA.
Article X.
Member City
Provides that each Member City
This provision was omitted from
[Addressed in
Responsi-
participating in Risk
Management Program has
Proposed amendment.
By -Laws for
bilities (Risk
responsibility to: (A) Appoint or
Separate Risk
Manage-
remove its member of Governing
Management
ment
Board, (B) Appoint or remove its
Program
Programs)
member to the Risk Management
Program(s), and (C) Approve
amendments to this Agreement.
Article XI.
Bud get
Article 10. Same as Article XI in prior
agreement.
14 9402 1 000602 -9000 09/20/2004 527 pm
18
144402.1 000602.9000 0920/2004 - 537 pm
1O•J
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint
Powers
Terms in Existing Joint Powers
Agreement (Dated 8/12/1998)
Terms in Proposed Amendment to Joint
Article of
Powers Agreement (Draft of 9/17/2004)
Authority By-
Section Section
Laws
Article XII.
Annual
Requires Governing Board to
Article 1 I. Refers to By -Laws for
Article 8.
Audit and
cause an annual financial audit of
accounts and records and
annual financial audit.
-
Financial Audit
Review
includes requirements for
preparation and filing of same.
Article XIII.
first ¶
Article 12.1. Same as Article XIII in
Establish-
prior agreement.
ment and
Adminis-
tration of
Funds
Article XIII.
second ¶
Provides warrants to pay
demands against Authority to be
Article 12.2. Provides that Governing
Board
Establish-
signed by both President,
shall establish policy for warrants
ment and
Secretary or Treasurer or
drawn to pay demands against
Adminis-
an
agent, employee or general
Authority.
tration of
manager of Authority.
Funds
Article XIII.
¶
Provides that subject to approval
by
Article 12.3. Same as third ¶ of Art
Establish-
Governing Board, Member
XIII, except this provision was omitted
City shall have ability to
from proposed amendment.
ment and
determine in which Risk
Adminis-
Management Program(s) it
tration of
wishes to participate.
Funds
Article
XIV.A.
Article 13.1. Same as Article XIV.A,
Withdrawal
except provides that Member "may at a
later time seek to renew narticioation in
said Program......
Article
XIV .B
Article 13.2. Same as Article XIV.B.
Withdrawal
144402.1 000602.9000 0920/2004 - 537 pm
1O•J
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185
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint
Powers
Terms in Existing Joint Powers
Agreement (Dated 8/12/1998)
Terms in Proposed Amendment to Joint
of
Agreement
Powers Agreement (Draft of 9/17/2004)
Authority
ty By-
Section
J;Bv-Laws
Article
XIV.C.
Provides that any Member City
which withdraws from
Article 13.1. Provides that a Member
Withdrawal
any Risk
Management Program pursuant
withdrawing from a Risk Management
Program may seek to renew
for
to XIV.A. shall not be permitted
to
participation subject to terms set forth in
Separate Risk
Management
renew participation in that
Risk Management Program until
the By -Laws of the Risk Management
Program
Pro ram.
expiration of 3 years from date of
withdrawal.
Article XV.
¶
Article 14.1. Same as XV first ¶, except
Section 13.5 -
E
Expulsion
xp ulsion
provides that Governing Board may
Program
expel "any Member from the Authority
Withdrawal or
and/or from a Risk Management
Expulsion
Program for material breaches of the
Governing Documents." Refers to By-
Laws of Authority or each individual
Risk Management Program.
Article XV.
Provides withdrawal or expulsion
This provision is addressed in Article
second ¶
of any Member City after
4.1.
Expulsion
inception of its participation in a
Risk Management Program shall
not terminate its responsibility
for years that Member City
participated in any Risk
Management Program.
Article XVI.
first ¶
Provides in part that Agreement
Article 15.1. Same as XVI, first ¶,
Termination
cannot be terminated until such
time as all principal for
except this provision was omitted from
Certificates of Participation shall
proposed amendment.
have been retired.
Article XVI.
second and
Articles 15.2-15.3. Same as XVI.,
third ¶s
second and third ¶s.
Termination
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185
149402.1 000602 -9000 09202004 - 5 27 pm 10
187
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint
Powers
Terms in Existing Joint Powers
Agreement (Dated 8/12/1998)
Terms in Proposed Amendment to Joint
Powers
Article of
Agreement
Agreement (Draft of 9/17/2004)
Authority By-
Section
Laws
Article XVII.
New
Provides that with approval of
Article 16. Refers to By -Laws for new
Article 4
Members
two- thirds of Governing Board,
member requirements.
Member
an y qualified city which is
member of Independent Cities
Entities
Association, may become a party
to this Agreement; city must
present City Council resolution
approving Agreement; date
applying city will become
Member City to be determined by
Governing Board.
Article
XVIII.
Articles 17.1-17.3. Same as XVIR.
Liability of
the Authority
Article XIX.
Notices
Provides that notices shall be
Article 18. Provides that notices to each
sufficient if delivered to office of
Member shall be sufficient "if mailed to
City Clerk of Member Cities,
its respective address on file with
Authority. Any Member may desimate
any other address in substitution of the
foregoing address by Giving five days
written notice to the Authority and all
other Members ".
Article XX.
Amendments
Provides amendment by vote of
Article 19. Provides for amendment to
to this
two- thirds of Member Cities
Agreement by vote of two - thirds of
Agreement
acting through their City Council
Members acting through their eovernine
and Program
body. Also provides for amendment to
By -Laws
individual Risk Management Program
By -Laws by vote of two - thirds of
Governing Board members representing
Members of that Risk Management
Program.
Article XXI.
Severability
Article 20. Same as=.
Article XXII.
Agreement
Article 21. Same as XXII.
Complete
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187
ICRMA - Proposed Changes to Joint Powers Agreement
Existing Joint Terms in Existing Joint Powers
Powers Agreement (Dated 8/12/1998)
Agreement
Section
Article
Provides amended Agreement to
XXIII.
be effective upon Authority
Term of
receiving notice of approval by
Agreement
City Council of two-thirds of
Member Cities.
1494021 000602 -9000 0920/2004 -5:27 pm
Terms in Proposed Amendment to Joint
Powers Agreement (Draft of 9/17/2004)
Article 22. Same as Article XXW,
except provides amended Agreement to
be effective upon Authority receiving
notice of approval by governing body of
two- thirds of the Members.
II
Article of
Authority By.
Laws
•
LIMej
RESOLUTION NO.
A RESOLUTION APPROVING THE FIFTH AMENDMENT TO THE JOINT
POWERS AGREEMENT FOR THE INDEPENDENT CITIES RISK
MANAGEMENT AUTHORITY AND APPOINTING REPRESENTATIVES.
BE IT RESOLVED by the Council of the City of El Segundo as follows:
SECTION 1: The City Council finds and declares as follows:
A. The City of El Segundo, ( "City "), is a member in good standing with
the Independent Cities Risk Management Authority ( "Authority ");
B. The Authority's Board of Directors approved a Fifth Amendment to
the Joint Powers Agreement ( "JPA ") that organizes the Authority as
set forth in the "Comparison of 1998 Joint Powers Agreement and
October 2004 Amended Joint Powers Agreement" which is part of
the administrative record;
D. The Fifth Amendment will become effective upon being approved
by two - thirds of the Authority's members;
F. The City desires to appoint its representative, and alternate, to the
Authority.
SECTION 2: The City approves the Fifth Amendment to the JPA and authorizes
the city manager to execute those documents needed to bind the City to the
terms and conditions of that Fifth Amendment.
SECTION 3: The City Council appoints Mayor Kelly McDowell to serve as the
City's representative with the Authority. The City Manager is authorized to
designate an alternate and substitute alternate at her discretion.
SECTION 4: The City Clerk directed to certify a copy of the resolution and
forward same promptly, by mail, to the Authority at the following address:
3760 Kilroy Airport Way, Suite 360, Long Beach, CA 90806
SECTION 5: The City Clerk is directed to certify the adoption of this Resolution;
record this Resolution in the book of the City's original resolutions; and make a
minute of the adoption of the Resolution in the City Council's records and the
minutes of this meeting.
ICRMA FIFTH AMENDMENT TO THE JOINT POWERS AGREEMENT AND APPONT NG REPR RESOLUTION EN O TIVES
PAGE NO. 1 189
SECTION 6: This resolution will become effective immediately upon adoption
and will remain effective unless repealed or superseded.
PASSED, APPROVED, AND ADOPTED this _ day of December 2004.
Kelly McDowell,
Mayor
ICRMA FIFTH AMENDMENT TO THE JOINT POWERS AGREEMENT AND APPOINTING REPRESENTOATIVES
PAGE NO. 2
I t� n
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, hereby certify
that the whole number of members of the City Council of the City is five; that the
foregoing Resolution No. was duly passed and adopted by said City
Council, approved and signed by the Mayor of said City, and attested to by the
City Clerk of said City, all at a regular meeting of said Council held on the _
day of December, 2004, and the same was so passed and adopted by the
following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Cindy Mortesen,
City Clerk
APPROVED
Mark D. Hen
22
Karl H. Berger,
Assistant Citv A
ICRMA FIFTH AMENDMENT TO THE JOINT POWERS AGREEMENT AND APPOINTING REPRESENTATIVES
PAGE NO. 3
17.1.
