Loading...
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 /i 1-?b/o4 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 too 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 Ean m w Vi=Uty, 7Y4dr A lobs 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. r` Hnuu 7 tuc L�� Asactwnu. 3511 S.M Fig 5,.. 5p ITS U. wv 7'� C: . Sew 793 Lo A W. Calfin 9MT1 USA lus B�, GWv 2=1 LISA 7136MIM 1 713 so Irm r 942M7M f. N242Mn t�Yi{wna�nrt WaM.1�rLVs 1 -;i 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 LICENSED 64 CITY MAP City of El &, mde LL w S3130Nb' SOS dO.LLNnoo 00 - O I }f o�r 1 J� _JI I;^ '] J —_imn � exsaty if o+rnrvx• s �3 11i xaw K .w. .. x x�x IT 2 ., =J -r c_= ;tsl ono Ll� 7 IT a ��I Ocean Tactiftic 3N?JOH.LMVH 30;.110 zS tp 1¢:'I 177M 0 65 O L w% a U o Ul . µ co J D 0 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 -3- 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: v � TE: 3�r 9 sr 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. STANOAHO SPEGFIWTIONS ILB "20 115 II-B-7 3325.7 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. 116 STANDARD SPECIFICATIONS II -B 4182004 I I -B -8 3 -5 35 525 • ., 94 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 o-e u=004 HIM llr Cffiffc3 4 -1.3.1 4 -1.3.2 - 325 .1 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. 118 STANOARO SPECIFICATIONS II -B QWO0 II -B -10 3325 - Q�,I1 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. STANDARD SPECIFICATIONS 1484B D06 11 II -B -11 3� 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 STANOp0.0 SPECIFICATIONS AFB "/10p4 12C H-13-12 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 p 9 MO04 II-B-13 121 33 2 5 • .' "ere1 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. STANOARO SPECIFICATIONS 168 41EMN4 MIMI 122 33 2 5 • :NIA 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 STANDARD SPECIFMATIONS 14B U&R000 123 II -B -15 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. STANOARO SPECIFICATIONS IFB 4I 004 124 325. SAM 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 o-e 41Mo I[-B-17 12-3 3325, 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. STANDARD SPECIFICATIONS [4B41MMI 126 II -B -18 3325 • a 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 STANOAHO SPECIFICATIONS [LB QWl ( 2 1 11 -B -19 11 3325 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 STANONRO SPECIFIC TICNS IF8 VW 1 2 n lYJ4 I I -B -20 3 3 2 5 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 STANDARD SPECIFICATIONS II -B QWOU II-B-21 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. STANDARD SPECIFICATIONS iLS VM001 11 -B -22 136 3325. .' 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 I&BOW .131 3325 , i 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 STANDARD SPECIFICATIONS ILB 40. 001 132 3325 • _71 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 11 -B -25 133 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, 11-B -26 134 3 3 2 b 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. STANDARD SPECIFIGTIONS 0.B C 004 II-B-27 135 3325 .,� "4.1 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 i� 136 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 I� 13 ii 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 II-B-31 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 II-B-32 i4(J 3325' 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 11 -B -34 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, II -B -35 4 3 3 L V ' s • i 97 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 II-B-36 144 332 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 149402.1 000602 -9000 0920/2004 -527 pm 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 149402.1 000602 -9000 0920/2004 -527 pm 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 149402.1 000602 -9000 09202004 - 5 27 pm 10 187 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.