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2006 JUL 18 CC PACKET - 2EL SEGUNDO CITY COUNCIL MEETING DATE: July 18, 2006 AGENDA ITEM STATEMENT AGENDA HEADING- Consent Aqenda Consideration and possible action regarding approval of a professional services agreement with Gary Chicots to serve as Interim Director of Planning and Building Safety (Fiscal Impact approximately $50,000) RECOMMENDED COUNCIL ACTION. 1) Authorize the City Manager to execute a professional services agreement with Gary Chicots to serve as Interim Director of Planning and Building Safety, 2) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION. Seimone Jurjis resigned as Director of Planning and Building Safety effective July 3, 2006 to pursue private sector career options The Planning and Budding Safety Department is currently working on several high - profile projects including a revision of the City's R -1 development standards, the development of Phase 1 (and the beginning of Phase 2) of the Plaza El Segundo project, the potential rezoning of the El Segundo Power site, the impending development of the TPG /Campus El Segundo site and an Impending review of budding height limits in the Downtown Specific Plan area Accordingly, I am recommending approval of a professional services agreement with Gary Chicots to serve as an interim department head for that critical department Mr Chicots is a seasoned professional with more than 25 years experience in public sector planning and community development The compensation specified in the agreement is $60 per hour ATTACHED SUPPORTING DOCUMENTS 1) Professional Services Agreement between the City and Gary Chicots, 2) Mr Chicots professional resume. FISCAL IMPACT: $50,000 estimated Capital Improvement Program, Amount Requested: Account Number: Project Phase. Appropriation Required: _Yes X No 7 23 INTERIM DIRECTOR OF PLANNING AND BUILDING SAFETY AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND GARY CHICOTS THIS AGREEMENT is entered into this 18`h day of July, 2006 by and between the CITY OF EL SEGUNDO, a general law city and municipal corporation (`CITY ") and GARY CHICOTS, an individual ( "CONTRACTOR ") 1 APPOINTMENT OF INTERIM DIRECTOR OF PLANNING AND BUILDING SAFETY. CONTRACTOR is appointed as CITY's Interim Director of Planning and Building Safety CONTRACTOR will serve at the pleasure of CITY's city manager and may be replaced at any time, with or without cause, without amending this Agreement 2 SCOPE OF SERVICES. CONTRACTOR will perform the services needed to serve CITY which will include, without limitation, the following A CONTRACTOR will attend all regular and special meetings of the City Council unless excused by the city manager, B Perform the functions and duties specified by statute and relevant CITY ordinances and resolutions for a Planning and Building Safety Director, and to perform such other legally permissible and proper duties and functions as CITY may from time to time assign, C To perform the following specific tasks Supervise revision of the City's R -I development standards, u Supervise development of Phase 1 and the beginning of Phase 2 of the Plaza El Segundo project, ni Supervise the potential rezoning of the El Segundo Power site, ry Supervise the impending development of the TPG /Campus El Segundo site, V Supervise the impending review of building height limits in the Downtown Specific Plan area D The parties anticipate that CONTRACTOR will work approximately forty (40) hours per week 3 TERM. The term of this Agreement will be for six (6) months from the effective date unless otherwise extended by written amendment by the parties, terminated in accordance with this Agreement, or automatically terminated upon CITY employing a 124 Planning and Building Safety Director, the Agreement will automatically renew for a one (1) month term Thereafter, the Agreement will automatically renew for successive one (1) month terms unless terminated by either Party or if automatically terminated by CITY employing a Planning and Building Safety Director 4 COMPENSATION. CONTRACTOR will be compensated for providing the services contemplated by this Agreement as follows A Basic Compensation CITY will pay CONTRACTOR an hourly rate of $60 The total amount paid to CONTRACTOR cannot exceed $57,600, unless the Agreement is renewed as set forth above or by amendment B Cost and Expense Reimbursement In addition to the foregoing compensation, CITY will reimburse CONTRACTOR for actual and necessary ordinary out -of- pocket expenses reasonably incurred by CONTRACTOR in performance of the service provided by CONTRACTOR to CITY pursuant to this Agreement C Taxpayer Information CONTRACTOR agrees to attach a completed W -9 Form to this Agreement to facilitate tax reporting for payments made by CITY to CONTRACTOR pursuant to this Agreement 5 CONFLICTS OF INTEREST. CONTRACTOR represents that neither CONTRACTOR nor any of the attorneys or other persons employed by CONTRACTOR have any material financial interest, direct or indirect, to any contract or decision made by or on behalf of CITY that may be affected by the services to be provided to CITY pursuant to this Agreement, other than a financial interest that is similar, in all material respects, to the interests of the general public CONTRACTOR agrees that it will comply with CITY's conflict of interest code as adopted by City Council resolution 6 TERMINATION OF SERVICES. A CITY may terminate this Agreement with or without cause at any time by serving CONTRACTOR with notification of such termination by mail, by fax, or by CITY's Representative's oral notice of termination followed by written confirmation of same served on CONTRACTOR by mail B CONTRACTOR may terminate this Agreement with or without cause upon fifteen (15) days written notice to CITY C CITY will compensate CONTRACTOR for its services and reimburse it for costs rendered through and including the effective date of any termination 7 NOTICES Notices required under this Agreement must be given by personal service or by first class mail, postage prepaid, and addressed as follows 2 I To CONTRACTOR Gary Chicots 615 Terrame Avenue Long Beach, CA 90814 To CITY City of El Segundo 350 Main Street El Segundo, CA 90245 Attn City Manager 8. INDEMNIFICATION: A CITY will indemnify and defend CONTRACTOR from any and all claims, demands, actions, losses, or charges arising out of, related to, or as a consequence of CONTRACTOR performing his duties as Interim Director of Planning and Building Safety Further, CITY will pay all expenses, costs and attorney's fees arising out of or related to the same B The Parties agree that this Section will survive the termination of this Agreement CITY's obligations under this Section apply whether CONTRACTOR is or is not retained by the CITY at the time any such claim, demand, action, loss or charge is made or occurs, as the case may be so long as the action giving rise to the claim occurred during the time CONTRACTOR was retained by CITY 9 PERMITS AND LICENSES. CONTRACTOR, at his sole expense, will obtain and maintain during the term of this Agreement, all permits, licenses, and certificates that may be required, as determined by CONTRACTOR, in connection with the performance of services under this Agreement 10 ASSIGNABILITY. This Agreement is for CONTRACTOR's professional services CONTRACTOR `s attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void 11 INDEPENDENT CONTRACTOR. CITY and CONTRACTOR agree that CONTRACTOR will act as an independent contractor and will have control of all work and the manner in which it is performed CONTRACTOR will be free to contract for similar service to be performed for other employers while under contract with CITY CONTRACTOR is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees Any provision in this Agreement that may appear to give CITY the right to direct CONTRACTOR as to the details of doing the work or to exercise a measure of control over the work means that CONTRACTOR will follow the direction of the CITY as to end results of the work only i�tJ 12 AUDIT OF RECORDS. CONTRACTOR will maintain full and accurate records with respect to all services and matters covered under this Agreement 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 CONTRACTOR will retain such financial and program service records for at least four (4) years after termination or final payment under this Agreement 13 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 14 ENTIRE AGREEMENT. This Agreement sets forth the entire understanding of the parties There are no other understandings, terms or other agreements expressed or implied, oral or written This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns 15 RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning, it will not be interpreted strictly for or against either Party 16 SEVERABILITY. 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 17 AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein This Agreement may be modified by written amendment CITY's city manager, or designee, may execute any such amendment on behalf of CITY 18 ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Agreement, 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 19 EFFECTIVE DATE. This Agreement is effective on July 18, 2006 a ,;" 3 4. 1 IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first heremabove written CITY OF EL SEGUNDO, GARY CHICOTS a municipal corporation an individual Jeff Stewart, City Manager ATTEST Cindy Mortesen City Clerk APPROVED AS TO FORM Mark D Hensley, City Attorney Karl H Berger, Assistant City Attorney Taxpayer ID No OBJECTIVE Gary Chicots 615 Terrame Ave Long Beach, Ca 90814 Work (323) 584 -6260 Home (562) 498 -3248 Cell (562) 412 -5154 To work in a progressive, stimulating, and forward thinking organization in a responsible management position which will allow professional growth and utilize my education, experience, and management skills to the fullest extent possible QUALIFICATIONS I am a seasoned local government professional with over 27 years of City related experience as a City Manager, department head, and related experience As a result, I have well - developed skills in community Development, Public works, Contract Negotiations, Personnel and Labor Relations, Finance, Redevelopment, and modern public sector management I possess the ability to lead a diverse workforce and utilize staff to its greatest potential I am able to lead employees on their strengths and abilities by example and provide positive role models I am able to attract and maintain quality staff by mentonng, training and providing a van cry of work related incentives Accomplishments: • Redevelopment - Merger of three redevelopment project areas within the South El Monte Business Improvement District • New Issuance, $18,120,000 00 South El Monte Business Improvement District Tax Allocation Bonds, Ratings S &P "AA" (Radian), S &P "BBB" (underlying) • Develop short-term finance strategy to retain tax increment funds resulting in the recapture of $2,250,500 • Economic Development- Develop marketing strategy and informational material to promote the development of key sites in South El Monte • Identified three potential mixed -use development project sites and attracted major developers utilizing public relations efforts Also provided financial subsidy totaling $2,060,000 in Housing Set - aside funds for the development of low and moderate housing ir� • Personnel- Re- organization of the South El Monte personnel system This included the rehiring of key department head staff along with other key personnel to fill needed positions in Community Development, Community Services, Finance, City Clerk, and Administration Also completed negotiations with management and rank a file groups • Public works- Development of a Five -Year capital Improvement Program encompassing all capital projects Also implemented a Work -Out Program to expedite backlogged public improvement projects utilizing various grant funds that were subject to recapture • Energy Retrofit Program - Negotiated a "no-cost" 15 year capitalized lease agreement totaling $730,000 with a major construction company to retrofit all city facilities regarding energy savings • Social Service /Community Service- Reorganized South El Monte child care program through RFP /contract negotiations with subcontractor and the Department of Social Services, State of California • Finance- Prepared a Cost Allocation Plan and Fee Study to up -date South El Monte ability to recover costs associated with services provided to the residents • Community Development- Developed an Overlay Zone and updated zoning regulations in order to prevent the operation of an adult cabaret business which resulted in a court decision in favor of the City of South El Monte Work History 2006 to present, Interim City Planning Consultant City of Huntington Park Intenm position assisting the City in project management, special projects administration and coordination, and contract administration for key projects i J 0 2002 to 2005, City Manager City of South El Monte Responsible for over -all management of city departments including Community Services, Public Works, Community Development, Los Angeles County Sheriffs, Los Angeles County Fire Department, and Personnel Act as the Executive Director of the South El Monte Community Development Commission, and Finance Authority Oversee annual City /Agency /CIP budget totaling $14 6 million Supervise 80 full -time, part-time, and contract employees 1994 -2002, Director of Community Development City of Lynwood Department head positron responsible for Planning, Building and safety, Home Program, Lynwood Redevelopment Agency, Economic Development Programs and Commercial and Residential Rehabilitation Programs Acted as the Assistant Director of the Lynwood Redevelopment agency, and as Director of Planning, and Building Official Supervise 30 employees 1991 to 1994, Director of Community Development City Of Lawndale Department Head position responsible for Building and Safety, Planning, Housing Authority, Code Enforcement, and the Lawndale Redevelopment Agency Directed the preparation of the Lawndale General Plan and Specific Plan as well as and the municipal code up date and supervised 8 employees 1986 to 1991, Director of Planning City of Rosemead Department head position responsible for Planning, and Code Enforcement Development a comprehensive Code Enforcement Program and initiated the up -date of the Rosemead General Plan Supervise 5 employees Education Masters of Public Policy and Administration, June 1989 California State University, Long Beach Bachelor of Arts Geography, June 1977 Certificate in Environmental Studies, June 1977 California State University, Long Beach Military Experience United States Air force Reserves, October 1969 - October 1975 Rank, Sgt (E -4) Honorable Discharge ,�J1 EL SEGUNDO CITY COUNCIL MEETING DATE: July 18, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION* Consideration and possible action regarding a Resolution providing for salary and benefit changes to Chapter 1A2 (Management - Confidential Series) of the El Segundo Administrative Code, a Resolution establishing new salary ranges for Accountant and Office Specialist II — Human Resources, and a Resolution updating the Nationwide Retirement Solutions Governmental Deferred Compensation Matching Plan and Trust Plan (Fiscal Impact $236,000) RECOMMENDED COUNCIL ACTION: 1) Adopt the attached resolutions, 2) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION- Executive Management and Mid- Management/ Confidential job classifications are periodically reviewed by the City Council for possible salary and /or benefit adjustments The last salary increase received by this group of unrepresented employees, with the exception of the Battalion Chiefs and Administrative Battalion Chief, was 4 %, effective 6/25/2005 Battalion Chiefs and Administrative Battalion Chief received a 7% salary increase, also effective 6/25/2005 At Council's direction, staff initiated the review process for possible July 1, 2006 salary and /or benefit adjustments starting in June 2006 - continued next page- ATTACHED SUPPORTING DOCUMENTS- 1 ) Resolutions 2) Attachment A- Salary Tables FISCAL IMPACT- $236,000 ($59,000 in FY 2005 -2006 & $177,000 in FY 2006 -2007) Operating Budget: Amount Requested: $236,000 (for period July 1, 2006 to June 30, 2007) Account Number. 001 -400- 2901 -6244 Project Phase: Appropriation Required, X Yes _No ($59,000 in FY 2005 -2006) ORIGINATED BY. DATE: June 30, 2006 Bret M Plumlee, Director of Administrative Services REVIEW DATE Je , City Manager Agenda 547 S � .� . BACKGROUND & DISCUSSION: Adoption of the attached Resolution providing for changes to Chapter 1A2 (Management - Confidential Series) of the El Segundo Municipal Code and a Resolution establishing new salary ranges for Accountant and Office Specialist II — Human Resources would result in the following 1 A 4 0% salary increase for all Executive Management, Mid- Management/Confidential employees, with the exception of the City Manager, effective 6/24/2006 A 4 0% salary Increase for Battalion Chief and Administrative Battalion Chief, also effective 6/24/2006, was previously approved by Council on 7/19/2005 For reference, the Consumer Price Index (CPI) for the Los Angeles- Riverside- Orange County area averaged 4 858% for the 12 -month period from June 2005 — May 2006 2 The City will annually contribute an additional 1 0% of employee's salary, on a matching basis, to employee 401 (A) Deferred Compensation accounts The City currently annually contributes 2 5% of employee's salary The contribution will apply to all members of the Management Confidential group of employees, including Battalion Chiefs and Administrative Battalion Chief 3 The benefit provision of the current Long Term Disability (LTD) Insurance Program provided to civilian non -sworn Executive Management, Mid- Management/Confidential employees will be Increased from 66 2/3% to 75% of employees' covered salary Battalion Chiefs, Administrative Battalion Chief, Fire Chief, and Police Chief will be added to the LTD Program 4 A 3 0% increase in Chief Officer Certification Pay, for a total Certification Pay of 5% This increase was previously approved by Council on 7119/2005 5 Nominal salary range increases for Accountant ($68 16 per month increase) and Office Specialist II —Human Resources ($50 66 per month increase) With the concurrence of the affected bargaining units, these two fob classifications were reallocated to the Management, Mid- Management/Confidential group of employees in July, 2004 with no change in salary, and the current salary range adjustment is necessary to attain consistency within the City's salary tables for unrepresented employees The attached Resolution updating the Nationwide Retirement Solutions Governmental Deferred Compensation Matching Plan and Trust Plan reflects the increase in the City's matching contribution from 2 5% to 3 5% of employee's salary 'J') 1 J RESOLUTION NO A RESOLUTION PROVIDING FOR SALARY AND BENEFIT CHANGES TO CHAPTER 1A2 (MANAGEMENT - CONFIDENTIAL SERIES) OF THE EL SEGUNDO ADMINISTRATIVE CODE The City Council of the City of El Segundo does resolve as follows Section 1 - Section 1A2010 and of the El Segundo Administrative Code, entitled "Basic Salary Schedule," is amended as shown on "Attachment A " Section 2• Section 1A2 106, entitled "Insurance Benefits — Employee Dental/ Optical/ Long Term Disability (Non -Job Related)," is amended to read as follows. (c) Long Term Disability (Non -Job Related) Management - Confidential employees shall be covered by the City under a long term disability insurance plan Section 3 Section 1A2 120 of the Administrative Code, entitled "Deferred Compensation Plan," is amended as follows. The City will annually pay an amount equal to the employee's contribution to deferred compensation up to a maximum of 3 5% of the employee's total pay, for all Management - Confidential employees participating in City approved deferred compensation plans Section 4 Section 1A2 123, entitled "Chief Officer Certification" is amended to read as follows Battalion Chiefs and Administrative Battalion Chief, upon obtaining Chief Officer Certification from the Office of the State Fire Marshal, shall receive Certification Compensation in the amount equivalent to 5% of base salary per month Section 5 The City Clerk will certify to the passage and adoption of this Resolution, enter the same in the book or original resolutions of said City, and will make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City, in the minutes of the meeting at which the same is passed and adopted Section 6 This Resolution will remain in effect until superseded by a subsequent resolution i.jy Section7 This Resolution will become effective immediately upon adoption PASSED AND ADOPTED this 18`" day of July, 2006 Kelly McDowell, Mayor ATTEST Cindy Mortesen, City Clerk APPROVED Mark D Hen By /?�/ a Assistant 1 i�J STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, hereby certify that the whole number of members of the City Council of the City is five; that the foregoing Resolution No was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the day of , 2006, and the same was so passed and adopted by the following roll call vote AYES NOES ABSENT ABSTAIN ATTEST Cindy Mortesen, City Clerk APPROVED AS TO FORM' Mark D. Hensley, City Attorney In Karl H Berger Assistant City Attorney i.3� ATTACHMENT A CITY OF EL SEGUNDO PROPOSED SALARY TABLES MANAGEMENT /CONFIDENTIAL GROUP EFFECTIVE PAYROLL BEGINNING JUNE 24, 2006 GRADE STEP A STEP B STEP C STEP D STEP E 1m 1,95210 2,05092 2,15475 2,26383 2,37844 2m 2,00090 2,10219 2,208 62 2,32043 2,43790 3m 2,05092 2,15475 '2,263 83 2,37844 2,49885 4m 2,10219 2,208 62 2,32043 2,43790 2,561 32 5m 2,15475 2,26383 2,28696 2,40274 2,52438 6m 2,12367 2,231 18 2,37844 2,49885 2,62535 7m 2,26383 2,37844 2,49885 2,62535 2,75826 8m 2,32043 2,43790 2,561 32 2,69099 2,82722 9m 2,37844 2,49885 2,62535 2,75826 2,89790 10m 2,43790 2,561 32 2,69099 2,82722 2,97034 11 m 2,49885 2,62535 2,75826 2,89790 3,04460 12m 2,561 32 2,69099 2,82722 2,97034 3,12072 13m 2,62535 2,75826 2,89790 3,04460 3,198 74 14m 2,69099 2,82722 2,97034 3,12072 3,27870 15m 2,75826 2,89790 3,04460 3,198 74 3,360 67 16m 2,82722 2,97034 3,12072 3,27870 3,44469 17m 2,89790 3,04460 3,198 74 3,36067 3,53081 18m 2,97034 3,12072 3,27870 3,44469 3,61908 19m 3,04460 3,198 74 3,36067 3,53081 3,70955 20m 3,12072 3,27870 3,44469 3,619 OS 3,80229 21m 3,198 74 3,36067 3,53081 3,70955 3,89735 22m 3,27870 3,44469 3,61908 3,80229 3,99478 23m 3,36067 3,53081 3,70955 3,89735 4,09465 24m 3,44469 3,61908 3,80229 3,99478 4,197 02 25m 3,53081 3,70955 3,89735 4,09465 4,301 94 26m 3,61908 3,80229 3,99478 4,197 02 4,40949 27m 3.70955 3,89735 4,09465 4,301 94 4,51973 28m 3,80229 3,99478 4,197 02 4,40949 4,63272 29m 3,89735 4,09465 4,301 94 4,51973 4,74854 30m 3,99478 4,197 02 4,40949 4,63272 4,86726 31m 4,09465 4,301 94 4,51973 4,74854 4,98894 32m 4,197 02 4,40949 4,63272 4,86726 5,11366 33m 4,301 94 4,51973 4,74854 4,98894 5,241 50 34m 4,40949 4,63272 4,86726 5,11366 5,37254 35m 4,51973 4,74854 4,98894 5,241 50 5,50685 36m 4,63272 4,86726 5,11366 5,37254 5,64452 37m 4,74854 4,98894 5,241 50 5,50685 5,78564 38m 4,86726 5,11366 5,37254 5,64452 5,93028 39m 4,98894 5,241 50 5,50685 5,78564 6,07853 40m 5,11366 5,37254 5,64452 5,93028 6,23050 41m 5,241 50 5,50685 5,78564 6,07853 6,38626 42m 5,37254 5,64452 5,93028 6,23050 6,38626 43m 5,50685 5,78564 6,07853 6,38626 6,70957 44m 5,64452 5,93028 6,23050 6,54592 6,87730 45m 5,78564 6,07853 6,38626 6,70957 7,04924 46m 5,93028 6,23050 6,54592 6,87730 7,22547 47m 6,07853 6,38626 6,70957 7,04924 7,40610 48m 6,23050 6,54592 6,87730 7.22547 7,591 26 49m 6,38626 6,70957 7,04924 7,406 10 7,781 04 ,7 ATTACHMENT A CITY OF EL SEGUNDO PROPOSED SALARY TABLES MANAGEMENT /CONFIDENTIAL GROUP EFFECTIVE PAYROLL BEGINNING JUNE 24, 2006 GRADE STEP A STEP B STEP C STEP D STEP E 50m 6,54592 6,87730 7,22547 7,59126 7,97556 51m 6,70957 7,04924 7,40610 7,781 04 8,17495 52m 6,87730 7,22547 7,591 26 7,97556 8,37933 53m 7,04924 7,40610 7,781 04 8,17495 8,58881 54m 7,22547 7,591 26 7,97556 8,37933 8,80353 55m 7,40610 7,781 04 8,17495 8,58881 9,02362 56m 7,591 26 7,97556 8,37933 8,80353 9,24921 57m 7,781 04 8,17495 8,58881 9,02362 9,48044 58m 7,97556 8,37933 8,80353 9,24921 9,71745 59m 8,17495 8,58881 - 9,02362 9,48044 9,96039 60m 8,37933 8,80353 9,24921 9,71745 10,209 40 61m 8,58881 9,02362 9,48044 9,96039 10,464 63 62m 8,80353 9,24921 9,71745 10,209 40 10,726 25 63m 9,02362 9,48044 9,96039 10,464 63 10,994 40 64m 9,24921 9,71745 10,209 40 10,726 25 11,269 26 65m 9,48044 9,96039 10,464 63 10,994 40 11,551 00 66m 9,71745 10,209 40 10,726 25 11,269 26 11,839 77 67m 9,96039 10,464 63 10,994 40 11,551 00 12,135 76 68m 10,209 40 10,726 25 11,269 26 11,839 77 12,439 16 69m 10,464 63 10,994 40 11,551 00 12,135 76' 12,750 14 70m 10,726 25 11,269 26 11,839 77 12,439 16 13,068 89 71m 10,994 40 11,551 00 12,135 76 12,750 14 13,395 61 72m 11,269 26 11,839 77 12,439 16 13,068 89 13,730 50 73m 11,551 00 12,135 76 12,750 14 13,395 61 14,073 77 74m 11,839 77 12,439 16 13,068 89 13,730 50 14,425 61 75m 12,135 76 12,750 14 13,395 61 14,073 77 14,786 25 76m 12,439 16 13,068 89 13,730 50 14,425 61 15,155 91 77m 12,750 14 13,395 61 14,073 77 14,786 25 15,534 80 78m 13,068 89 13,730 50 14,425 61 15,155 91 15,923 17 79m 13,395 61 14,073 77 14,786 25 14,937 31 16,321 25 80m 13,730 50 14,425 61 15,155 91 15,923 17 16,729 29 60f 8,96588 9,41978 9,89665 10,397 67 10,924 05 60fco 9,41417 9,89077 10,391 49 10,917 56 11,470 26 62f 9,41980 9,89668 10,397 70 10,924 08 11,477 11 62fco 9,89079 10,391 51 10,917 58 11,470 28 12,050 97 69f 10,464 65 10,994 42 11,551 02 12,135 79 12,750 16 70p 10,726 25 11,269 27 11,839 77 12,439 16 13,068 89 70p -m 11,262 56 11,832 73 12,431 76 13,061 12 13,722 34 ��s8 RESOLUTION NO A RESOLUTION ESTABLISHING REVISED SALARY RANGES FOR THE JOB CLASSIFICATIONS OF ACCOUNTANT AND OFFICE SPECIALIST II — HUMAN RESOURCES BE IT RESOLVED by the Council of the City of El Segundo as follows Section 1- The City Council approves the following basic monthly salary range for the fob classification of Accountant. STEP A STEP B STEP C STEP D STEP E Range 31 m $4094.65 $430194 $451973 $474854 $498894 Section 2 The City Council approves the following basic monthly salary range for the fob classification of Office Specialist II — Human Resources- STEP A STEP B STEP C STEP D STEP E Range 18m $2970 34 $312072 $327870 $344469 $361908 PASSED, APPROVED AND ADOPTED this 18`h day of July, 2006 Kelly McDowell, Mayor ATTEST Cindy Mortesen, City Clerk X39 RESOLUTION NO. A RESOLUTION ADOPTING THE NATIONWIDE RETIREMENT SOLUTIONS GOVERNMENTAL DEFERRED COMPENSATION MATCHING PLAN AND TRUST (PLAN). BE IT RESOLVED by the Council of the City of El Segundo as follows SECTION 1 The City Council finds as follows A The City of El Segundo is an "employer" for purposes of the Internal Revenue Code, B The City adopted a Deferred Compensation Plan which is available to all eligible employees pursuant to Internal Revenue Code ( "IRC ") § 457, C Certain tax benefits accrue to employees participating in said Deferred Compensation Plan, D The City wishes to provide an additional incentive to its employees to voluntarily set aside and invest portions of their current income to meet their future financial requirements and supplement their existing retirement programs(s), E Nationwide Retirement Solutions, Inc (NRS) provided the City with a specimen plan document (the NRS Governmental Deferred Compensation Matching Plan and Trust), F It is in the public interest for the City to attract and retain employees of the highest caliber in order to provide and maintain high standards of service SECTION 2 The Nationwide Retirement Solutions Governmental Deferred Compensation Matching Plan and Trust ( "Plan") is adopted The Plan will be maintained for the exclusive benefit of eligible employees and their beneficiaries SECTION 3 The City Manager is authonzed to execute all documents and make any additional administrative decisions or determinations to implement the Plan The City Manager or Director of Administrative Services, or designee, are named trustees for the Plan SECTION 4: The City of El Segundo Deferred Compensation Matching Plan ( "Matching Plan") is adopted The City Manager or Director of Administrative Services or designee is authorized to execute all documents and make any additional administrative decisions or determinations to implement the Matching Plan. SECTION 5• The employer's contribution for the Plan and Matching Plan will match an employee's annual contribution to the employee's 457 plan up to three and one -half percent (3- 1/2%) of the annual total pay SECTION 6 Management/Confidential employees, eligible under the City's Deferred Compensation Plan are also eligible for the Plan and Matching Plan SECTION 7 The City Clerk is directed to certify the adoption of this Resolution, record this 3 4 0 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 SECTION 8 This Resolution will become effective immediately upon adoption and remain effective unless repealed or superseded PASSED AND ADOPTED this 18th day of July 12006 Kelly McDowell, Mayor i�l STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, hereby certify that the whole number of members of the City Council of the City is five, that the foregoing Resolution No. was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the day of 2006, and the same was so passed and adopted by the following roll call vote AYES NOES ABSENT ABSTAIN- ATTEST Cindy Mortesen, City Clerk APPROVED AS F SDI Mark D Hensl v ornev By' J' arl H Bjrger Assistant City A)to ey ti EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA MEETING DATE: July 18, 2006 AGENDA HEADING: Consent Consideration and possible action regarding approval of a $2,000,000 grant from the Federal Aviation Administration (FAA) to be used for the Residential Sound Insulation (RSI) Program RECOMMENDED COUNCIL ACTION' 1) City Council accept FAA Grant Agreement for Project No AIP 3 -06- 0139 -40, 2) Authorize the Mayor to execute the FAA Grant Agreement, and 3) Alternatively, discuss and take other action related to this Item BACKGROUND & DISCUSSION: Earlier this year, staff applied for additional FAA Grant Funding for the City's RSI Program On June 30, the FAA sent a grant agreement for $2,000,000 In additional funding contingent on the offer being accepted by the City on or before August 30, 2006 The offer is in keeping with previous terms and conditions of previous FAA grants accepted by the City To date, the City has accepted ten FAA grants totaling $13,808,880 and this would be the City's eleventh FAA grant Staff recommends that City Council accept the FAA Grant Agreement to continue the Residential Sound Insulation Program To date, the City has completed RSI Improvements on 336 Dwellings This new grant will be used after current FAA grants and first LAWA grant have be expended and is expected to help fund Groups 23 -25 ATTACHED SUPPORTING DOCUMENTS: Project No AIP 3- 06- 0139 -40 Grant Offer FISCAL IMPACT $2,000,000 to be received in RSI Grant Funds Operating Budget: Amount Requested. Account Number Project Phase: Appropriation Required _Yes X No James S 'Neill, Prociram Manager REVIEW DATE: 11f Je art, City Mana er 1��3 0100 US Deportment of Tromportotron Federal Aviation Administration June 28, 2006 Federal Aviation Administration Western -Paafic Region Jeffrey Stewart City Manager City of E1 Segundo 350 Main Street El Segundo, CA 90245 -0989 Dear Mr Stewart Los Angeles International Airport Project No. AIP 3 -06- 0139 -40 Grant Offer 15000 Aviation Boulevard Lawndale, CA 90261 The Los Angeles International Airport, Fiscal Year 2006 Airport Improvement Program No 3-06- 0139 -40, Contract DTFA08- 06- C- 21981, DUNS No 077- 264679 has been approved Enclosed are four original copies of the grant offer, under which the United States commits itself to participate in an allowable cost of the project not to exceed $2,000,000 Your acceptance of the grant offer will obligate the city of El Segundo (sponsor) to accomplish the described development An official of the sponsor shall accept the offer on or before the date specified in paragraph 6, page 2 of the grant offer by signing the enclosed instruments in the space provided The date of the execation of the grant offer should be the same as, or later than, the date of the resolution The certificate of sponsor's attorney shall be the same as, or later than, the date of execution When the documents are fully executed, certified, attested, and appropriate seals impressed, please return three original copies of the grant agreement to this office and keep one original copy for your files Sincerely, Cl� John Gilligan Supervisor, Standards Section cc Jim Ritchie. LAWA a 4t 1 i '2 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA MEETING DATE: July 18, 2006 AGENDA HEADING: Consent Consideration and possible action regarding adoption of Ordinance No 1396 approving the issuance of a Pipeline Franchise Agreement to Chevron Pipeline Company fora penod of ten (10) years for a jet fuel pipeline located generally in Virginia Street between Imperial Avenue and El Segundo Boulevard (Fiscal Impact = $3,000, estimated annual franchise fee) RECOMMENDED COUNCIL ACTION: Recommendation — (1) Second reading by title only and adoption of Ordinance No. 1396, (2) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION: On January 16, 1996, the City of El Segundo entered into a non - exclusive Oil Pipeline Franchise Agreement ( "Pipeline Franchise ", Ordinance No 1246) with Chevron Pipeline Company ( "Chevron ") for a ten -year period ending on May 12, 2005 to operate and maintain a pipeline system consisting of a single line of pipe twelve (12) Inches in internal diameter for the purpose of transporting petroleum products in, under, along, and across public streets in the City of El Segundo as shown on the attached map. A copy of Ordinance 1246 is available for review in the City Clerk's Office (Please see "Background and Discussion" on following page) ATTACHED SUPPORTING DOCUMENTS: Map Franchise Ordinance No 1396 Application from Chevron Pipeline Company Resolution No 4465 (Resolution of Intent to hold a public hearing) FISCAL IMPACT: Operating Budget: NA Amount Requested- NA Account Number. NA Project Phase: NA Appropriation Required: No Director of Public Works ?/10/0,b DATE- 7�((l sl�J 10 BACKGROUND & DISCUSSION: (continued The Pipeline Franchise has been maintained by Chevron in a holdover status by annually submitting payment of franchise fees calculated pursuant to the terms of the franchise agreement On November 8, 2005, the City of El Segundo received a letter of application from Chevron requesting that the City grant a new franchise agreement for ten (10) years, for the same pipelines On May 16, 2006, City Council adopted resolution No. 4465 declaring its intent to conduct a public hearing to consider all oral and written testimony regarding the Pipeline Franchise On May 25 and June 1, 2006, the City Clerk published notification as required by the Public Utilities Code On June 20, 2006, City Council conducted the public hearing and first reading of the Ordinance No public comment was received during the public hearing Franchise fees paid to the City under this Franchise Ordinance are regulated by the California Public Utilities Code This fee is based on the length and diameter of pipes covered under the Franchise and as adjusted for inflation from year to year The estimated annual franchise fee will be $3,000 per year. 141 L 6 / S O � J W 1 � 1 W a z < 0 CALIFORNN ST BUNGALOW DR MARYLAND ST SIERRA S PENN $7 SHELDON ST CYPRESS 57 EUCALYPTUS OR PEPPER S" MAIN ST CEDAR S7 3� �r VIRODNAST� IOMA VISTA $T HILLCREST S7 w G W moo II uuuL- LS �l "' I1 U = n LU W LL J W l� YZ I V H I O J 3 3 AM 61MAM I L y4 J y jl LL I 1 l I I I roe S I f f � I < ug 2 � NLLCREST 2 W 0 W i 3 � 7 o ` o� 3 6 3 L a N '0 OL U > C �E., = C to U II Ln -00 U m U. E L� 1! Exhibit "B" b O 6 W 6 w G W moo II uuuL- LS �l "' I1 U = n LU W LL J W l� YZ I V H I O J 3 3 AM 61MAM I L y4 J y jl LL I 1 l I I I roe S I f f � I < ug 2 � NLLCREST 2 W 0 W i 3 � 7 o ` o� 3 6 3 L a N '0 OL U > C �E., = C to U II Ln -00 U m U. E L� 1! Exhibit "B" ORDINANCE NO. 1396 AN ORDINANCE GRANTING TO CHEVRON USA, INC. AN OIL PIPELINE FRANCHISE WITHIN THE CITY OF EL SEGUNDO. The city council of the city of El Segundo does ordain as follows SECTION 1: The City Council finds and determines as follows A The city of El Segundo ( "City ") received an application from Chevron U S A Inc ( "Chevron ") for a franchise to lay and use pipes and appurtenances for transmitting and distributing oil or products thereof (as defined below), for any and all purposes in, under, along, across or upon the public streets, ways, alleys and places within the city of El Segundo B Chevron had a 10 -year oil pipeline franchise agreement with the City which expired on May 12, 2005, but which franchise agreement Chevron maintained in a holdover status by annually submitting payment of franchise fees calculated pursuant to the terms of such franchise agreement and the City's acceptance thereof Chevron seeks to be granted by the City a new franchise agreement for ten (10) years, for the same pipelines C In accordance with state law, the City Council, at a regular meeting held on May 16, 2006 declared its intention to grant said franchise agreement to Chevron by adopting Resolution No, 4465 D The City Council also conducted a duly noticed public hearing on June 20, 2006, and after considering all oral and written testimony at said hearing, approved the granting of this franchise agreement to Chevron in accordance with the terms and conditions of this Ordinance. SECTION 2 Definitions Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter A "City" or "Grantor' means the city of El Segundo, a general law city and municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form B "Director' means the Director of Public Works of the City C "Engineer' means the City Engineer of the City, or designee. � 8 D "Facilities" means "Pipes and Appurtenances' as defined below E "Franchise" means this Ordinance, including its terms and conditions, and includes the authorization by the City to transmit and distribute oil or petroleum products for any and all purposes under, along, across or upon the public streets, ways, alleys and places in the City by means of pipes and appurtenances. F "Grantee" means Chevron U.S A Inc. a Pennsylvania corporation and its lawful successors or assigns G "Hazardous Materials" means any flammable, explosive, or radioactive materials or hazardous, toxic or dangerous wastes, substances or related materials or any other chemicals, materials or substances, exposure to which is prohibited, limited or regulated by any federal, state, local law or regulation or which, even if not so regulated, may or could pose a hazard to public health and safety, including, without limitation, asbestos, PCBs, petroleum products and byproducts, substances defined or listed as "hazardous substances" or "toxic substances" or similarly identified in, pursuant to, or for purposes of, the California Solid Waste Management, Resource Recovery and Recycling Act (Gov't Code §§ 66700 et seq ); the Comprehensive Environmental Response, Compensation, and Liability Act (42 U S C §§ 9601 et seq ), the Hazardous Materials Transportation Act (49 U S C. §§ 1801 et seq ), the Resource Conservation and Recovery Act (42 U S.C. §§ 6901 et seq.), California Health & Safety Code §§ 25117 or 25316, including the regulations promulgated thereto (see 22 Cal Code of Regs. § 66261 3), any substances or mixture regulated under the Toxic Substance Control Act of 1976 (15 U S.0 §§ 2601 et seq ), any "toxic pollutant" under the Clean Water Act (33 U S C. §§ 1251 et seq.), and any hazardous air pollutant under the Clean Air Act (42 U S C §§ 7901 et seq ) H "Lay and use" means to lay, construct, erect, install, operate, maintain, use, repair, replace, or remove "Oil or petroleum products" means oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, nitrogen and other industrial gases, water, waste water, mud, steam and other liquid substances not more hazardous than the aforesaid substances "Pipes and appurtenances" means pipes, pipelines, manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines, including conduits, cathodic protection devices, wires, cables, other appurtenances and fiber optic communications systems necessary or convenient for the exercise of the Grantee's business in, upon, along, across, under or over those streets of the City which are described in the attached Exhibit "A" which is incorporated by reference K "ESMC" means the El Segundo Municipal Code, as amended L "Streets" means the public streets, ways, alleys and places within the City as the same now or may hereafter exist, and in which the City has the authority to grant a Franchise SECTION 3: Granting clause /Rights to Grantee; Tenn of Franchise A Pursuant to, and subject to, the Franchise Act of 1937 (California Public Utilities Code §§ 6201 -6302, "Act "), City grants to Grantee a franchise to use, or to lay and use pipes and appurtenances for transmitting and distributing oil or petroleum products for any and all purposes, under, along, across or upon the public streets within the City as described in Exhibit "A" and identified on the maps attached as Exhibit "B" and incorporated by reference B As part of this Franchise, Grantee may install, operate, maintain, replace, repair, abandon in place and /or remove such scraper traps, manholes, flanges, conduits, culverts, vaults, valves, appliances, cathodic protection systems, attachments and other appurtenances (collectively, "appurtenances ") as may be necessary or convenient for the proper maintenance and operation of the pipelines under this franchise, provided, however, that Grantee must first secure the requisite permits and /or approvals from City for construction or excavation C This Franchise is granted in lieu of all other franchises for pipelines held by the Grantee, or by any predecessor of the Grantee, for transmitting and distributing oil or petroleum products within the City's present or future jurisdictional limits Acceptance of this franchise constitutes Grantee's abandonment of all such franchises within the City's present or future jurisdictional limits in lieu of which this franchise is granted, and as Grantee's agreement to comply with all of the Franchise's terms and conditions. D This Franchise has a term of ten (10) years from and after the effective date of this Ordinance ( "initial term "), unless the following occurs. 1 Grantee voluntarily surrenders or abandons the Franchise, or 2 The property affected by this Franchise is purchased, condemned, or otherwise taken by a public entity rendering the Franchise useless; or _J0 3 The Grantee forfeits the Franchise by violating its terms and conditions or that of the Act. E Grantee has an option to extend this Franchise for an additional ten (10) year penod of time before the end of the initial term of this Franchise, upon the City's written approval, which approval will not be unreasonably withheld or conditioned. The parties must commence good faith negotiations on such extension upon notification from Grantee to the City of its election to renew this Franchise, which notice must be given not later than twelve (12) months before the initial term expires SECTION 4. Compensation In consideration of City's granting this Franchise, in addition to complying with the Franchise's terms and conditions, Grantee must pay to the City the following A Base Annual Fee. During the term of this Franchise, Grantee agrees to pay the City a base annual fee for this Franchise as set forth in § 6231 5 of the Act The base fee is subject to increase to the maximum rate established in subsequent amendments of the Act The Franchise fee will be prorated for the remainder of the calendar year based on a 360 -day year, with the first payment of the Franchise fee accruing from May 13, 2005 2 Should Grantee partially abandon pipelines or should Grantee partially remove such pipelines payments otherwise due the City for occupancy of the streets by such pipelines will be reduced by the length and diameter of pipeline abandoned or the actual pipeline removed, beginning with the first day of the next succeeding Franchise year, and for each subsequent franchise year The base rate, however, will be modified to reflect the increase (as provided below) applicable to such abandoned or removed pipeline at the beginning of the next succeeding Franchise year following abandonment or removal 3 The base annual fee is due and payable annually on January 2, during the term of the Franchise for the preceding annual period, without demand and upon filing of the report required by this Section. Any fees or expenses charged to Grantee by City pursuant to this Section, or any other provision of this Franchise, unless disputed in good faith, must be paid when due or are deemed delinquent. Any undisputed delinquent amounts will accrue interest commencing thirty (30) days after the due date, at the rate of one and one -half percent (1.5 %) per month (based upon a 30 -day calendar month) or any lesser amount if required by law Any 3J,� neglect, omission or refusal by Grantee to pay any undisputed delinquent fee with any late charges, within thirty (30) days of written demand for payment is grounds for the City to declare the Franchise forfeited. 4 Payments must be made to the Office of Treasurer, City of El Segundo, or at such place as the City may, from time to time, designate in writing The base annual fee must be paid annually during the term of the Franchise, including the year of granting the Franchise B Annual Increase The amount of each annual payment of the base annual fee is subject to an increase after the first year of the Franchise and each subsequent year during the term of this Franchise, based on § 6231 5 of the Act, as amended The increase is based on the Consumer Price Index (CPI), All Urban Consumers, for the Los Angeles- Anaheim - Riverside area (1982 -84 = 100), as published by the United States Bureau of Labor Statistics, Department of Labor, for the month of September immediately preceding the month in which payment is due and payable, divided by the Consumer Price Index, All Urban Consumers, for the Los Angeles- Anaheim - Riverside area, for June 30, 1989, which equals 100 (Note This was revised to reflect what is in the Cal Public Utilities Code Section 6231 5) If the Index is discontinued or revised during the term of this Franchise, such other governmental price index or computation with which it is replaced chosen by the City will be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised 3 The City will determine the adjustment in CPI and will provide the Grantee with the correct schedule before December 1 preceding the month of January in which payment is due and payable C Reports Required The Grantee must file with the City Clerk and City's Finance Director, on or before January 2nd after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this Franchise and on or before January 2nd (Note These revisions were made to reflect the requirements set forth in Section 4(A)(3)) after the expiration of each calendar year thereafter, two copies of a report duly verified by the oath of the Grantee or by the oath of a duly authorized representative of the Grantee, showing for the immediately preceding franchise period. (a) The length of pipelines in lineal feet covered by this Franchise, (b) The nominal internal diameter of such pipelines expressed in inches, (c) The rate per foot per year; and (d) The total amount due the City. SECTION 5 Rights of the City. A This Franchise does not impair or affect any right of the City to acquire the property of the Grantee, either by purchase or through the exercise of the right of eminent domain, subject to Grantee's rights, remedies and defenses, and nothing in this Franchise may be construed to contract away, or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the Grantee, nor will this Franchise be given any value before any court or other public authority in any proceeding of any character in excess of the necessary publication costs and any other sums paid by Grantee to the City at the time this Franchise was acquired. B. In connection with any change in grade, alignment or width of any public street, way, alley or place ( "the Streets "), or the construction of any subway or viaduct, or any other street improvement of any kind by the City, where Grantee's rights to occupy the Streets do not supersede the City's rights, Grantee must, at the City's direction and at Grantee's sole cost and expense, comply with all of the following provisions, as applicable. Within ninety (90) days after Grantee receives written notice from the City that work is to be done pursuant to any reserved right and specifying the general nature of the work and the area in which the same is to be performed, the Grantee must commence to do all things necessary to protect and support its franchise property during the progress of such work. If so ordered by the City, Grantee must relocate those pipes and appurtenances installed, used and maintained within the street to such extent, in such manner, and for such period as is necessary to permit the performance of such work in an economical manner, and to permit the maintenance, operation and use of such street improvement ��3 2. Grantee must pay to the City the full amount of any increase in cost for the construction, installation or repair of any bridge, or any artificial support in or underlying any street in which any pipes or appurtenances of the Grantee are located, if such increase in cost is required in order to provide for the installation, maintenance or operation of Grantee's pipes or appurtenances in or on the street area which the bridge or other artificial support covers or underlies 3 Grantee must cooperate with the City to take all actions reasonably necessary in order to accomplish the completion of any City street improvement project within a reasonable period of time. After Grantee receives written notice from the City that work is to be done, the Grantee must diligently prosecute such work to completion 4 In the decision process necessary to determine if Grantee's pipelines and /or appurtenances are required to be relocated, the City will also consider all known future projects that, if done separately, may cause multiple relocation of the pipelines and /or appurtenances If such known future projects can be identified, full consideration of concurrent projects will be given by City If the City requires the relocation within the public street, way, alley or place more than once within a period of ten (10) years, the City will pay the cost of the second and all subsequent relocations within such ten (10) year period 5 In the event that the City changes the planned rearrangement of pipelines, or the notice given to Grantee, the Grantee will be given an additional period of not less than sixty (60) days to accomplish such work. When Grantee's rights to occupy the Streets predate or supersede the City's rights, such relocations will be performed by Grantee as set forth above with the costs reimbursed to Grantee by City 6 Except as otherwise provided above, when City requires a rearrangement of Grantee's facilities and such rearrangement is done for the accommodation of any person, firm, corporation or public agency other than the City, the cost of such rearrangement will be borne by the accommodated party Such accommodated party, in advance of such rearrangement, must (a) deposit with the Grantee either cash or a corporate surety bond in an amount, as in the reasonable discretion of the Grantee, to pay the costs of such rearrangement, and (b) execute an instrument agreeing to indemnify, defend and hold harmless Grantee from any and all damages or claims caused by such rearrangement. This provision will not be construed to require Grantee to rearrange its facilities. i J I Any accommodation for rearrangement of Grantee's facilities will be made at the Grantee's sole discretion 7 Nothing in this Agreement may be construed to require the City to move, alter, or relocate any of its pipelines upon public streets at its own expense, for the convenience, accommodation or necessity of any other public utility, person, firm or corporation, now or hereafter owning a public utility system of any type or nature, or to move, alter, or relocate any part of its pipelines upon said streets for the convenience, accommodation or necessity of the Grantee SECTION 6: Other obligations of Grantee; Indemnification. The Grantee must comply with all of the following provisions: A. Within sixty (60) days after the City Council adopts this Ordinance, Grantee must file with the Director improvement plans relating to all of Grantee's facilities located within the City, and a map or maps showing the location, length and size of all such facilities which have been installed, relocated, removed or abandoned by Grantee B Within six (6) months after the installation of any new pipelines under this franchise, Grantee must file with the Director an "as built" map or maps showing the approximate location, length and size of all of Grantee's pipelines so installed. C Grantee must construct, install and maintain all pipes and appurtenances in a good and workmanlike manner, and of good materials, and operate in conformity with all applicable federal, state, and local laws including, without limitation, the El Segundo Municipal Code (ESMC) In case of public utilities subject to the jurisdiction of the Public Utilities Commission of the State of California, the rules, regulations and orders of the Public Utilities Commission will govern whenever any conflict may exist between them and the applicable ordinances, codes, rules and regulations adopted or prescribed by the City To the extent required by applicable law, the Grantee must obtain and maintain a permit from the City of El Segundo Fire Department to construct, install, use, operate, repair or modify a pipeline for the transportation of flammable or combustible liquids D Grantee must pay the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this Franchise, provided Grantee fads to make such repairs after notice and reasonable opportunity to complete such repairs. E Grantee agrees to indemnify, defend and hold harmless the City, its elected and appointed officials, officers, and employees, from and against any and all claims, losses, liabilities, damages to persons or property, 5 ;� demands, actions, judgments, causes of action, assessments, penalties, costs and expenses (including, without limitation, reasonable fees of legal counsel, expert witnesses and accountants) arising out of or resulting from Grantee's operations under this franchise, except to the extent caused by City's sole active negligence, and for all damages proximately resulting from the failure of Grantee to faithfully observe and perform each and every provision of this franchise and of the Act. Grantee is solely responsible for complying with all laws, regulations, and other orders which are applicable to the installation, repair, relocation or removal of its facilities, whether federal, state or local. City's approval of such installation, repair, relocation or removal will not relieve Grantee of any liability Grantee may have for contaminated soils or other environmental liability attributable to or arising from Grantee's pipes, appurtenances and other facilities. Any fee paid by Grantee pursuant to this Agreement will in no way limit Grantee's obligation to compensate City for any damage, claim, expense or loss whatsoever, as set forth in this paragraph F. In addition, Grantee indemnifies and holds the City harmless from and against any claim, action, damages, costs (including, without limitation, reasonable attorney's fees and penalties), injuries, or liability, ansing out of this Agreement, or its performance including, without limitation, damages or penalties arising from Grantee's removal, remediation, response or other plan concerning any Hazardous Materials resulting in the release of any hazardous substance into the environment Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, Grantee will defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise The foregoing indemnity is intended to operate as an agreement pursuant to 42 USC § 9607(e) (the Comprehensive Environmental Response, Compensation and Liability Act; "CERCLA ") and Health & Safety Code § 25364 to defend, protect, hold harmless, and indemnify the City from all forms of liability under CERCLA, or other applicable law, for any and all matters addressed in this Franchise G In no event will Grantee's indemnity obligation under this Franchise include indemnification for the City's gross negligence or willful misconduct SECTION 7• INSURANCE A Before commencing performance under this Franchise, and at all other times this Agreement is effective, Grantee must procure and maintain the following types of insurance with coverage limits complying, at a minimum, -iJ�) with the limits set forth below Type of Insurance Commercial general liability Workers compensation Limits (combined single) $2,000,000 Statutory requirement B Commercial general liability insurance must meet or exceed the requirements of ISO -CGL Form No. CG 00 01 11 85 or 88 The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage Liability policies will be endorsed to name the City, its officials, and employees as "additional insureds' under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such insurance must be on an "occurrence," not a "claims made,' basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to the City C Grantee will furnish to the City duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement, endorsements as required herein, and such other evidence of insurance or copies of policies as may be reasonably required by the City from time to time. Insurance must be placed with admitted insurers with a current A M. Best Company Rating equivalent to at least a Rating of "A-VII." Certificate(s) must reflect that the insurer will provide thirty (30) day notice of any cancellation of coverage Grantee will require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mad written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions D Should Grantee, for any reason, fad to obtain and maintain the insurance required by this Agreement, the City may obtain such coverage at Grantee's expense or terminate this Franchise E Grantee must deliver to City, in the manner provided for notices, copies or endorsements of all insurance certificates and endorsements required by this Ordinance, within the following time limits: 1. For insurance required at commencement of this Ordinance, within thirty (30) days after this Ordinance becomes effective; 2. For insurance becoming required at a later date, at least ten (10) days before the requirement becomes effective, or as soon thereafter the requirement, if new, becomes effective, and a 1c f`�� 3 For any renewal or replacement of a policy already in existence, at least twenty (20) days after expiration or other termination of the existing policy B Notwithstanding anything to the contrary, Grantee may provide a program of self - insurance provided it can demonstrate that it had a net worth of $10,000,000 00 within the preceding year. The City, at its sole discretion, may allow Grantee to self - insure provided the self - insurance program complies with the provisions and specified limits contained herein, and is approved by the City Manager and City Attorney If such approval for self - insurance is granted, the City will be precluded from exercising the remedies afforded to it pursuant to subsection D of this Section 7 SECTION 8 PRESENCE OF HAZARDOUS MATERIALS: Except as otherwise provided below, Grantee may not or permit any Hazardous Materials to be discharged or released in, under, or about the streets or adjacent properties at any time Grantee must, at its expense, procure, maintain in effect and comply with all conditions of any and all applicable permits, licenses, and other governmental and regulatory approvals required of Grantee for Grantee's use of the streets or adjacent properties. Upon expiration or earlier termination of the franchise term, Grantee must cause all Hazardous Materials released by Grantee in or under the Streets or adjacent properties, if any, to be removed from the streets or adjacent properties in accordance with and in compliance with all applicable laws Grantee may not take any remedial action in response to the presence of any Hazardous Materials in or about the streets or adjacent properties, nor enter into any settlement agreement, consent decree or other compromise in respect to any claims relating to any Hazardous Materials in any way connected with the streets or adjacent properties, without first notifying City of Grantee's intention to do so and affording City ample opportunity to appear, intervene or otherwise appropriately assess and protect City's interests. SECTION 9: NOTICE TO GRANTOR Grantee must immediately notify City in writing of (i) any enforcement, cleanup, removal or other governmental or regulatory action instituted, completed or threatened pursuant to any applicable laws relative to the streets or adjacent properties, (ii) any claim made or threatened by any person against Grantee or the streets or adjacent properties relating to damage, contribution, cost recovery compensation, loss or injury resulting from or claimed to result from any Hazardous Materials; and (iii) any reports made to any governmental agency arising out of or in connection with any Hazardous Materials in or removed from the streets or adjacent properties, including any complaints, warnings or asserted violations in connection therewith Grantee must also supply to City as promptly as possible copies of all claims, reports, complaints, notices, warnings or asserted violations, relating in any way to the streets or adjacent properties, or Grantee's use of the streets. Grantee must promptly deliver to City copies of manifests reflecting the legal and proper disposal of all Hazardous Materials removed by the Grantee from the streets or adjacent properties 11 SECTION 10 Assignability Grantee may sell, transfer or assign this Franchise or any interest therein directly or indirectly, or any of the rights or privileges hereby granted, with the City's prior written consent, which will not be unreasonably withheld. Notwithstanding the above statement, Grantee may transfer or assign this Franchise to any parent, subsidiary or affiliate without obtaining the consent of City, provided Grantee provides written notification within thirty (30) days of said transfer or assignment and submits written evidence of the same, including a certification executed by a duly authorized officer of the Grantee. Upon compliance with the foregoing, this Franchise will be binding on the successors and assigns of the parties hereto, and inure to the benefit of the successors and assigns of the parties hereto. SECTION 11: Excavations. A Grantee must obtain an excavation permit in accordance with the ESMC, and pay the applicable fee therefor, before commencing any excavation in any street or public right of way, or before disturbing the earth beneath the surface of the street, except in the case of an emergency Before any excavation permit is issued for the construction or installation of a pipeline for the transmission of flammable or combustible liquids, gases or hazardous materials, Grantee must obtain the applicable permits from the City If the proposed location of the excavation does not, or will not, unreasonably interfere with the use of the streets by the City or if Grantee holds rights to occupy the area of the Streets which supersede the City's rights, and Grantee complies with all applicable laws, the Public Works Director will issue the appropriate permit(s) B Where it is necessary to lay any underground pipes through, under or across any portion of a paved or macadamized street, such work, where deemed by Grantee in its sole discretion to be a safe method of installation, as well as practicable and economically feasible, may be done by a tunnel or bore so as not to disturb the foundation of such paved or macadamized street If the same cannot be done, or if it is necessary to cut the street in order to access existing pipes and appurtenances, such work will be done pursuant to an excavation permit C. All work is subject to the City's inspection All street coverings or openings, valves, vaults and manholes must at all times be kept flush with the surface of the streets, provided, however, that vents for underground vaults and manholes as well as cathodic protection devices, including pole- mounted rectifiers may, subject to the City's prior approval, extend above the surface of the streets when such vents and cathodic protection devices, including pole- mounted rectifiers, are located in parkways, between the curb and the property line The Grantee must provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with the ESMC and comply with such additional 12 safety measures as the City may direct D In emergencies, Grantee may commence excavation of streets without prior permit, provided, however, Grantee acts in a reasonable and diligent manner as soon as practicable after the onset of said emergency to obtain a permit authorizing such work E Grantee acknowledges that the City's records may not be complete and that pipes and appurtenances previously unknown to City are frequently discovered Consequently, by granting this franchise or by approving any excavation permit requested by Grantee, the City does not warrant the accuracy of information supplied to the Grantee by the City regarding the location or existence of other facilities. Nothing herein will make the City, or any officer, agent or employee of the City, responsible or liable to the Grantee or to any other person by virtue of the City's approval of excavation permit plans, regardless of whether any information is supplied by the City to the Grantee pertaining to the location of existing pipes, facilities or other improvements on, in or under any street or other public property. SECTION 12: Grantee's Emergency Response Plan; Pipeline Accidents A The Grantee must develop and maintain an emergency response plan, reasonably satisfactory to the City, which covers all franchise operations within the City. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section is acceptable. The emergency response plan must include a 24 -hour notification program and proof of arrangements capable of providing emergency response services, including without limitation to traffic control, street excavation pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City may reasonably require Repairs to a public street, alley or parkway must be completed within 72 hours of Grantee completing repairs to its facilities and clean up of any materials released from its facilities, if reasonably possible, unless otherwise authorized by the City The City must be notified ten (10) days in advance of any proposed change in such arrangements Any changes in or revisions to Grantee's emergency response plan must be submitted to the City on the first working day of the subsequent calendar year B Whenever any pipeline or appurtenance breaks or leaks so as to cause the release of oil or petroleum products into or under the public right -of- way, Grantee, and any other person using or controlling the pipeline or appurtenance, must immediately notify the City's Police Department and Public Works Department and implement precautionary safety measures including traffic control, system shutdown, valve closures, and public 13 �GJ notification. In the event of an emergency which threatens life, health, safety, or property, and where it is not possible to obtain an excavation permit before commencing the work, the Grantee may commence such work, provided, however, that within seventy -two (72) hours thereafter the Grantee must apply for an excavation permit. Adequate traffic safety barriers must be maintained at all times, and any damaged portion of the street must be restored to at least the condition that existed immediately before the damage. C If any portion of any City street is damaged by reason of defects, breaks or leaks in any of the pipes and appurtenances maintained or constructed by Grantee, or by reason of any other cause attributable to or arising from the operation of any pipes and appurtenances constructed or maintained by Grantee, the Grantee must, at its sole cost and expense, immediately repair all damage and restore the street to the condition existing before such damage occurred All such work must be done under the City's direction, and to the City's reasonable satisfaction. Grantee must repair such damage and restore the street within three (3) working days after receiving a written demand from the City or such other reasonable period as the Director may authorize when required for the protection of the public health and safety D. Should Grantee, after reasonable notice, fail or refuse to pave, surface, grade, repave, resurface or regrade any damaged street as required by the provisions of this franchise, the City may cause the work to be done after written notice is given to Grantee and will keep an itemized account of all costs incurred. The Grantee agrees to, and must, reimburse the City for all such costs, including reasonable administrative overhead expenses, within thirty (30) days after presentation to Grantee of an itemized account of such costs. SECTION 13. Abandonment. Should Grantee abandon all or any part of the pipes and appurtenances which encompass this Franchise, such abandonment must be accomplished by Grantee as required by the State of California Pipeline Safety Act, or other governing State or Federal laws or statutes. Grantee will not owe the City any compensation for the privilege of said abandonment The ownership of all franchised property so abandoned in place, immediately vest in the City except that Grantee will retain ail liability for the installation or construction of those facilities, and any liability for Hazardous Materials, as those liabilities exist as of the date of the Abandonment SECTION 14: Default. A Effect of Default. Should Grantee default in the performance of any of the terms, covenants and conditions herein, and such default is curable, the City may give written notice to Grantee of such default Should Grantee not commence the work necessary to cure such default within sixty (60) Alj 14 days after such notice is received by Grantee, or prosecute such work diligently to completion, the City may declare this Franchise forfeited Upon giving written notice of forfeiture to Grantee, this Franchise will terminate and Grantee's rights will terminate. Should the Franchise be forfeited, Grantee must execute an instrument of surrender and deliver same to City In the event of noncompliance by the Grantee with any of these conditions, the City may, in addition to all other remedies, bring suit for the forfeiture or termination of this Franchise. B Force Majeure. Should Grantee's performance of this Franchise be prevented due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond Grantee's control, then Grantee will not be deemed to be in default or forfeit its Franchise rights if it commences and prosecutes performance with all due diligence and promptness upon being able to do so C Cumulative Remedies No provision of this Franchise for enforcing the terms and conditions of this Franchise is an exclusive remedy or procedure for enforcement These remedies and procedures are in addition to those provided by law and are cumulative SECTION 15 Dispute Resolution. If a dispute arises between the parties relating to this Franchise, the parties agree to use the following procedure before either party pursuing other available legal remedies, except when doing so would cause the expiration of an applicable statute of limitations. A meeting will be held promptly between the parties, attended by individuals with decision- making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute If, within thirty (30) days after such meeting the parties have not succeeded in negotiating a resolution of the dispute, they agree to submit the dispute to mediation. City and Grantee will equally advance a proportionate share of the costs of mediation The parties will jointly appoint a mutually acceptable mediator within thirty (30) days from the conclusion of the negotiation period The parties agree to participate in good faith in the mediation and related negotiations for a period of sixty (60) days. Any decision of the mediator must be supported by written findings of facts and conclusions of law If the parties are not successful in resolving the dispute through the mediation, the matter may be submitted to a court of law SECTION 16: Notice. Any notice required to be given under the terms of this Franchise, the manner of services of which is not specifically provided for here, may be served to the following identified addresses, or to such other address as may from time to time be furnished in writing by one party to the other, and by depositing said notice in the United States mad, postage prepaid When the services of any such notice is 362 15 made by mad, the time such notice will begin with and run from, is the date of deposit of the same in the United States mad. Upon City City of El Segundo Public Works Department Attn Director of Public Works 350 Main Street El Segundo, CA Upon Grantee. Chevron USA Inc c/o Chevron Pipe Line Company 16301 Trojan Way La Mirada, CA 90638 Fax (714) 228 -1524 Attn: Team Leader) SECTION 17. Grantee's Acceptance of Franchise. Except as otherwise stated herein, Grantee must within thirty (30) days after this Franchise is adopted, file with the officers of the City designated herein the following instruments or documents: A. File with the City Clerk Grantee's written acceptance of the terms and conditions of this ordinance B File with the City Clerk certified copies of the policies of liability insurance and workers' compensation insurance, or, in lieu thereof, certificates evidencing such insurance, which policies must be in accordance with the terms and conditions of this ordinance Notwithstanding anything to the contrary, Grantee may provide a program of self- insurance provided it can demonstrate that it had a net worth of $10 million within the preceding year The City, at its sole discretion, may allow Grantee to self - insure provided the self - insurance program complies with the provision and specified limits contained herein, and is approved by the City Administrator and City Attorney C File with the City Clerk, within ten (10) business days after the City Council adopts and passes the ordinance granting this franchise and thereafter at all times during the life of the Franchise keep on file with the City Clerk, a bond issued by an admitted surety insurer, and in a form approved by the City Attorney, in the penal sum of One Hundred Thousand Dollars ($100,000), conditioned that the Grantee will well and truly observe, fulfill, and perform each condition of the Franchise and that in case of any breach of condition of the bond, the whole amount of the penal sum 16 1�J therein specified will be recoverable from the principal and surety upon said bond If said bond is not filed, or if it does not receive the approval of the City Attorney, the Franchise may be revoked or forfeited and any money paid to the City in connection therewith will be retained by the City SECTION 18. Reimbursement for City's posting and publication expenses. The Grantee will pay the City a sum of money sufficient to reimburse the City for all posting and publication expenses incurred in connection with the granting of this Franchise. Such payment must be made by Grantee within thirty (30) days after the City provides to the Grantee a written statement of such expenses SECTION 19 Venue The Parties agree that all actions or proceedings arising in connection with the ordinance will be tried and litigated in the State courts located in the County of Los Angeles, State of California The Parties intend that this choice of venue be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Ordinance in any jurisdiction other than that specified in this Section. Each party waives any right it may have to assert the doctrine of forum non conveniens or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this Section, and stipulates that the State courts located in the County of Los Angeles, State of California have in person jurisdiction and venue over each of them for the purpose of litigating any dispute, controversy, or proceeding arising out of or related to this Agreement SECTION 20• No Waiver. Grantee is not excused from complying with any of the terms and conditions of this Ordinance by any failure of the City upon any one (1) or more occasions to insist upon or to seek compliance with any such terms or conditions. No City waiver of any provision or consent to any action constitutes a waiver of any other provision or consent to any other action, whether or not similar No waiver or consent constitutes a continuing waiver or consent or commit a party to provide a waiver in the future except to the extent specifically set forth in writing Any waiver given by a party will be null and void if the party requesting such waiver has not provided full and complete disclosure of all material facts relevant to the waiver requested SECTION 21 • Binding Effect. Each and all of the provisions hereof are binding on and inure to the benefit of the Parties and their respective heirs, successors, and permitted transferees and assigns. SECTION 22 Amendment. No amendment, modification, or supplement to this ordinance is binding on any of the parties unless it is in writing, signed by the parties, and approved through legislative action SECTION 23 Entire Agreement. This ordinance constitutes the entire agreement between the parties with regard to this subject matter. This ordinance supersedes all previous agreements between or among the parties. There are no agreements, representations, or warranties between or among the parties other than 17 ; 6 -} those set forth in this Agreement or the documents and agreements referred to in this agreement SECTION 24: Construction. Each party has been represented by counsel in the negotiation and execution of this ordinance The terms of this ordinance were negotiated by the Parties and the language used in this Franchise is deemed to be the language chosen by the Parties to express their mutual intent. This Franchise will be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted, or in the favor of the party receiving a particular benefit under this Agreement No rule or strict construction will be applied against any Person SECTION 25: Miscellaneous Provisions. A Captions The captions here are for convenience and reference only, and are not part of this Franchise, and do not in any way limit, define or amplify the terms and provisions hereof B Governing Law This Franchise has been made and will be construed and interpreted in accordance with the laws of the State of California C. Execution The Mayor of the City will approve and sign and the City Clerk will attest to the passage of this Ordinance. This Ordinance will take effect thirty (30) days from the date of its adoption. Once this Ordinance becomes effective, it will be deemed to be applicable as of May 13, 2005 SECTION 26. Repeal of any provision of the El Segundo Municipal Code will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action of prosecuting violations occurring before the effective date of this Ordinance SECTION 27 Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 28 The City Clerk is directed to certify the passage and adoption of this Ordinance, cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting, and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 29 This Ordinance becomes effective thirty (30) days after adoption. 18 ��J APPR( Mark E 0 PASSED AND ADOPTED this _ day of 2006 iey Kelly McDowell, Mayor CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five, that the foregoing resolution, being RESOLUTION NO was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the day of 2006, and the same was so passed and adopted by the following vote AYES NOES: ABSENT ABSTENTION NOT PARTICIPATING WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of ,2006 Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) '161) 19 Location of pipeline in the City particularly described as follows: BEGINNING at a point in the South line of E1 Segundo Boulevard 20.00 feet easterly of the center line of Whiting Street: THENCE northerly across E1 Segundo Boulevard to a point 7.00 feet South of the center line of E1 Segundo Boulevard; THENCE easterly parallel to the center line of E1 Segundo Boulevard to a point 12.50 feet westerly of the center line of Virginia Street; THENCE northerly parallel to the center line of Virginia Street and its extension to a point in Imperial Avenue lying 16.00 feet South of the center line of Imperial Avenue; THENCE easterly parallel to the center line of Imperial Avenue to a point 150.00 feet easterly of the center line of Virginia Street; THENCE northerly parallel to the center line of Virginia Street to the North City boundary. This Franchise is hereby granted to Grantee, and its lawful successors and assigns subject to the terms of this Franchise. This Franchise shall include the right, for the period and subject to the terms of this Agreement, to so maintain, operate, repair, and renew the pipeline system of Grantee authorized hereunder as already laid and constructed in said Streets, if any. Exhibit "A" 'L 6 '7 2 \ L _ J � �� y W rr w w w ST C o o r CALIFORNIA ST Lr > � L � r L BUNGALOW OR MARYLAND ST SIERRA ST PENN ST SHELDON ST CYPRESS ST EUCALYPTUS OR PEPPER ST MAIN ST CEDAR ST VIRGINIA ST LOMA VISTA ST H{LLCREST ST W W 0 YI l 1� 7,71I J y NONE Mrs !-- _ ■' ... � r r � •m n to w aL Lu o "' 0 �z o ; Exhibit "B" AL L �tD p m C � N 8 c ri W u Q) fa c cn U a > I- -00 �-�C) C QJ N cz U Cl- C fQ S M s. w° Exhibit "B" AL November 8, 2005 Steve Finton Director of Public Works City of El Segundo 350 Main Street El Segundo, CA 90245 Re: Franchise renewal Application City Ordinance No 1246 CPL ROW #90181 Dear Mr Finton: Chevron RECEIVED NOV 15 2005 PUBLIC WORKS ENGINEERING Chevron Pipe Line Company, as agent for Chevron U.S.A. Inc., requests a grant from the City of El Segundo for a ten year franchise agreement for one 12 -inch aviation het fuel line under City streets from El Segundo Refinery to serve LAX. The current franchise agreement expired on May 12, 2005. Chevron U. S. A. Inc. shall pay the City of El Segundo an annual franchise fee which complies with the Franchise Act of 1937 (Public Utilities Code sections 6201, et seq.). Please vest the agreement in Chevron U. S. A. Inc., a Pennsylvania corporation. Please send the agreement for processing to: 16301 Trojan Way, La Mirada, CA 90638. Should you have any concerns, feel free to contact me at (714) 228 -1523. Thank you for your help and consideration with this matter. Sincerely, -ZE� �Z�L' Ray Riddle Right of Way Specialist .x RESOLUTION NO. 4465 A RESOLUTION DECLARING THE CITY COUNCIL'S INTENT TO CONDUCT A PUBLIC HEARING ON JUNE 20, 2006 REGARDING THE GRANT OF AN OIL PIPELINE FRANCHISE TO CHEVRON. The City Council does resolve as follows SECTION 1 The City Council finds and declares that A On November 15, 2005, the City of El Segundo received an application from Chevron Pipeline Company ( "Chevron ") for a franchise to lay and use pipes and appurtenances for transmitting and distributing oil or petroleum products for any and all purposes in, under, along, across, or upon the public streets, ways, alleys and places within the City's jurisdiction ( "Pipeline Franchise "), B Chevron previously held a Pipeline Franchise (Ordinance No 1246) for operations with the City that expired on May 12, 2005 SECTION 2 Pursuant to Public Utilities Code § 6232, the City Council declares its intention to conduct a public hearing on June 20, 2006 at 7 00 p m in the City Council Chambers at 350 Main Street, El Segundo, to consider all oral and written testimony regarding the Pipeline Franchise before determining whether to grant a new Pipeline Franchise to Chevron SECTION 3 The City Clerk is directed to publish public notice of the public hearing (including all requirements set forth in Public Utilities Code § 6233) at least one time within fifteen (15) days after this Resolution is adopted in a newspaper of general circulation SECTION 4 This Resolution will become effective immediately upon adoption and remain effective unless superseded by a subsequent resolution PASSED AND ADOPTED this 1ystday of May 2006 A&P / / elly McD wel , y APPROVED A / Mark D Hen Aft F )V 1 :/ / JJ / Berger, P�4t, istant City i 70 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five, that the foregoing resolution, being RESOLUTION NO 4465 was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the 16th day of May 2006, and the same was so passed and adopted by the following vote AYES McDowell, Busch, Boulgarides, Fisher, Jacobson NOES: None ABSENT None ABSTENTION None NOT PARTICIPATING: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 16th day of May .2006 FRE Cindy Mortesen, City Clerk Of the City of El Segundo, California (SEAL) 1 EL SEGUNDO CITY COUNCIL MEETING DATE July 18, 2006 AGENDA ITEM STATEMENT AGENDA HEADING. Consent Agenda AGENDA DESCRIPTION, Consideration and possible action to award a Contract to California Fence & Supply for the Installation of security enclosures around reservoir hatches at the 6 million gallon water reservoir located at 301 Maryland Street (Fiscal Impact = $ 16,800) COUNCIL ACTION- Recommendation — (1) Award a contract in the amount of $16,800 to California Fence & Supply in a form as approved by the City Attorney; (2) Authorize the City Manager to execute the construction contract on behalf of the City, and /or (3) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION In 2004, the City completed a vulnerability assessment of its municipal water system This assessment was performed in response to a mandate by the Environmental Protection Agency to assess the vulnerability of municipal water systems to intentional damage or contamination. round and discussion continued on the next ATTACHED None FISCAL IMPACT: Operating Budget, Capital Improvement Program, Amount Requested* Account Number. Project Phase, Appropriation Required: No No $16,800 Grant Funds 001. 400 - 3255 -8104 Award of Contract No ORIGINATED B DATE St ven Finton. Director of Public Works BACKGROUND & DISCUSSION: (continued) The assessment recommended additional security at two access hatches on the water reservoir at 301 Maryland Street The proposed project will install two security cages, 10' wide, by 10' long, by 8' high, over the access hatches at the northwest and southeast corners of the reservoir roof structure The roof structure of this reservoir also serves as the parking lot for Hilltop Park These cages will be galvanized steel structures with a tight wire mesh to prevent unauthorized access to interior of the reservoir Pursuant to the City of El Segundo Municipal Code §§ 1 -7C -1, et seq , staff contacted three contractors and received the following quotes. California Fence & Supply $16,800 Western Fence & Supply $16,900 Ace Fence Company $19,600 Staff recommends entering into a contract to California Fence & Supply in the amount of $16,800 to furnish and install the security enclosures Funding for the cages is available through a grant from the U S. Department of Homeland Security, under the Urban Area Security Initiative (UASI) FY 2004 -05 grant program This grant will fund 100% of project costs l i EL SEGUNDO CITY COUNCIL MEETING DATE: July 18, 2006 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to award a Contract to Truellne for the Recreation Park racquetball courts refurbishment (339 Sheldon Street) in the amount of $26,589 Approved Capital Improvement Project— Project No PW 06 -10 (Contract Amount = $ 26,589) RECOMMENDED COUNCIL ACTION: Recommendation — (1) Authorize the City Manager to execute a Public Works contract with Trueline in a form as approved by the City Attorney to refurbish the racquetball courts in the amount of $26,589, and (2) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION. (Background and discussion continued on the next page ATTACHED SUPPORTING DOCUMENTS. Location Map FISCAL IMPACT. Operating Budget. Capital Improvement Program, Amount Requested, Account Number- Project Phase, Appropriation Required: $50,000 $26,589 301 - 400 -8202 -8481 Award of Contract No ORIGINA D BY. DATE. July 10, 2006 Ste en Finton, Director of Public Works REVI rt, City Ma DATE• 1 2 BACKGROUND & DISCUSSION: (continued) The Capital Improvement Program for fiscal year 2005 -2006 includes a project to refurbish the two (2) indoor racquetball courts The proposed work includes removal of all existing surface paint from the concrete walls and floors, repair of the broken concrete surfaces and application of the new concrete epoxy (Dex -O -Tex) coating Ordinance 1391, adopted by the City Council on January 17, 2006, implementing the bidding requirements of the Uniform Public Construction Cost Accounting Act (Act) Under the Act projects valued less than $30,000 do not require formal bids The racquetball court refurbishment project was estimated at less than $30,000, therefore, staff solicited quotes from qualified contractors as follows 1 Trueline $26,58900 2 Coating Systems, Inc $30,85000 Trueline provided the lowest bid, staff recommends awarding a contract to Trueline for the refurbishment of the racquetball courts in the amount of $26,589 Trueline has completed similar projects for the City including the most recent surface refurbishment project of the tennis courts at the Recreation Park �'7 G\721 GIRP.up AV ENu B f i76 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA MEETING DATE: July 18, 2006 AGENDA HEADING: Consent Consideration and possible action regarding adoption of plans and specifications for Installation of a Telemetry System for the City's Water and Wastewater Divisions at 400 Lomita Street Approved Capital Improvement Program Project No PW 06 -01 (Fiscal Impact = $125,000) RECOMMENDED COUNCIL ACTION Recommendation — (1) Adopt plans and specifications; (2) Authorize staff to advertise the project for receipt of construction bids, (3) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION' The City's water, storm drain and wastewater systems consist of critical facilities such as pump stations and reservoirs that must be continuously monitored to assure proper function Undetected malfunctions could result in flooding, sewer discharges or loss of water system integrity (Background and discussion continued on the next page......) ATTACHED SUPPORTING DOCUMENTS. None FISCAL IMPACT- Operating Budget. Capital Improvement Program, Amount Requested, Account Number- Project Phase Appropriation Required, $350,000 $125,000 501 -400- 7103.8228 Adoption of Plans and Specifications No ORIGINATED BY DATE, July 11, 2006 to en Finton� of Public Works REVIEWE DATE' Jeff aKCityManeger 3 '1'7'7 BACKGROUND & DISCUSSION: (continued) To detect and respond to system malfunctions, the City maintains a telemetry system that monitors critical system functions and contacts staff to respond if malfunctions are detected The system consists of sensors at 18 remote sites which are connected via phone lines to a dedicated computer at the water facility at 400 Lomita Street. The existing system, while still functional, depends solely on phone lines and has been increasingly problematic As evidenced by the January 2006 sewer spill in Manhattan Beach, it is critical that any telemetry system by dependable and not rely on landlines alone. On June 7, 2005, City Council approved an agreement with Federal Signal Controls to design and provide hardware and software components for installation of an upgraded telemetry system The TERRA platform, Federal Signal's third - generation telemetry system, is proposed to provide intelligent, automated and highly- secure remote monitoring of the City's water distribution, wastewater collection and storm water pumping stations. The proposed telemetry system to be installed uses radio communication and will be capable of notifying staff through a pager system Where possible, the existing phone based communication system will be maintained to provide redundancy. Additionally, an audible and visual alarm system will provide an additional level of redundancy The installation will be phased to keep the existing system operational until the new system is operational Additionally, specific sites will be equipped with digital cameras that can display visual verification of system operation through secure internet access The plans to install the new system have been completed by Federal Signal Controls and the protect is ready to be advertised for construction bids The plans and specifications for the installation of the new telemetry system are available at the City Clerk's office for review Funding for this project is provided through the FY2005 -2006 Capital Improvement Program, 1 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE: July 18, 2006 AGENDA HEADING: Consent Consideration and possible action regarding adoption of plans and specifications for 2005- 2006 Slurry Seal of Various Streets — Approved Capital Improvement Program — Project No PW 06 -09 — (Fiscal Impact = $200,000), RECOMMENDED COUNCIL ACTION Recommendation — (1) Adopt plans and specifications; (2) Authorize staff to advertise the project for receipt of construction bids; (3) Alternatively discuss and take other action related to this item BACKGROUND & DISCUSSION: The Public Works Department administers a slurry sealing program as a preventive measure to extend the life of pavement Citywide. The slurry sealing process consists of the application of a thin asphalt slurry layer on existing asphalt pavement to prevent water intrusion (Background and discussion continued on next page......) ATTACHED SUPPORTING DOCUMENTS: Map FISCAL IMPACT Operating Budget Amount Requested* Account Number* Project Phase. Appropriation Required $250,000 $200,000 001 -400- 4202 -6206 Adopt plans and specifications No ORIGINATED DATE �/ Director of Public Works DATE 144 .179 Background and Discussion continued The City is divided into five areas for slurry sealing, four quadrants west of Sepulveda Boulevard and one area east of Sepulveda (see attached map). Previously, only the four quadrants west of Sepulveda Boulevard were included in the slurry sealing program and streets were slurry sealed on a four -year cycle. It became evident, however, that streets east of Sepulveda Boulevard were deteriorating and should be included in the program as the fifth slurry sealing area This reduced the slurry sealing frequency to five years. Conventional pavement management practice dictates that asphalt pavements should be slurry sealed at least every eight years The City's five year cycle exceeds this standard The area east of Sepulveda Boulevard was treated under the last contract completed in 2003. Slurry sealing was not included in the FY 2003 -04 and FY 2004 -05 budgets due to budget constraints Staff has prepared plans and specifications for the 2005 -2006 Slurry Seal Program which includes streets in the area bounded by Mariposa Avenue, Sheldon Street, El Segundo Boulevard and Sepulveda Boulevard, as shown on the attached map. This area was last slurry sealed in FY1998 -99 and is the area that has gone the longest without slurry treatment. iU� W SHY EL SEGUNDO CITY COUNCIL MEETING DATE- July 18, 2006 AGENDA ITEM STATEMENT AGENDA HEADING. Consent Agenda Consideration and possible action regarding the purchase of mobile and handheld radios for the fire department on a sole source basis with grant funding provided by the U S Department of Homeland Security, Office of Domestic Preparedness (ODP), under the Urban Area Security Initiative (UASI) for the Fiscal Year 2005 Federal Budget Year (FY2005) Fiscal Impact $168,220 00 RECOMMENDED COUNCIL ACTION: 1) Authorize the purchase of up to 39 radios with $168,220 00 in grant funds from the FY2005 UASI grant program, 2) Pursuant to El Segundo Municipal Code Sec. 1 -7 -10, waive the bidding process based upon sole source vendor for specified radios, 3) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION. The City Council previously accepted an award of $608,118 00 in grant funds under the FY2005 Urban Area Security Initiative (UASI) grant program This purchase will complete the replacement of the Fire Department's analog mobile and handheld radios, meeting regional interoperable communication goals When purchase and installation is completed, the El Segundo Fire Department's public safety radio system will be fully capable of functioning in an interoperable region -wide shared voice radio system when developed, meeting a national emergency response and communication goal and priority These radios will also be consistent with all other new mobile and portable radios being currently used or being purchased to be used by the Fire and Police Departments in the City as directed by City Council Continued on next page ATTACHED SUPPORTING DOCUMENTS. Authorized Equipment List — City of Los Angeles Contract #C- 109619 FISCAL IMPACT: Operating Budget. Amount Requested, Account Number: Project Phase, Appropriation Required. None $168,25000 001 - 300 - 0000- 3735(Revenue) 001 -400- 3255- 8104(Expenditure) N/A X Yes _ No ORIGINATED: DATE: Kevin S Smith, Interim Fire Chief July 10, 2006 REVIEWE DATE: Je art, City Manager 5 i tf ' BACKGROUND & DISCUSSION (continued). The City of El Segundo, in coordination with regional planners, established specific anti- terrorism goals and objectives, and also established priorities specifically for the acquisition of essential equipment The items requested in the proposal reflected priorities, which have been reviewed by the City Manager and approved by the City Council • (27) Mobile and Handheld Radios for Fire Suppression - $123,660 00 • (12) Mobile Radios for the Urban Search and Rescue unit - $44,560 00 Total $168,220 00 The purchase will be made through Motorola, the City's designated radio vendor using the County of Los Angeles bid pricing The equipment awarded will improve the City's communication capability and readiness to respond to chemical, biological and other hazards at emergency incidents and is a continuation of the terrorism grant funding being sought for the past 4 years under the DHS terrorism readiness programs In accordance with the City Council Policy regarding grant submissions 1. The Federal Department of Homeland Security, under the Office for Domestic Preparedness (ODP), administers the grant programs 2, The total amount being requested is $168,220 00 3. Matching Funds Cost -Share — n/a 4 Source of Matching Funds Cost Share n/a 5 The grant does not provide up front funding Municipalities encumber the approved funds and are reimbursed by the State of California in approximately 60 days 6 Conditions required under this grant a Establish that an Equal Employment Opportunity Plan (EEOP) be in place prior to spending grant funding beyond $25,000 00 in any single year b All equipment purchased under the grant funding, if awarded, is required to be maintained in accordance with the City's capital equipment replacement standards c The City of El Segundo must maintain an inventory system for all items purchased under the Homeland Security grant programs S, y y , I L- O a C 7 L. EL C IC L d i+ IC J.1 �H 1 l0 L Q C L N O _C i b �t E E E 0 E E u y U U U U 3 3 m m N m q m m m m m LL m `d O O O O O O O m ET P E S E $' c E E c E E ❑ n O a ❑ c1a 2 ma� m 5� ' w g d o n a o ` ac ao a a`-c' t �a a 2 E a r 0. 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Recommendation — (1) Award a contract to Shaw Industries, Inc in the amount of $35,000 by piggybacking onto State of California Contract # 4- 97- 72 -0008A with Shaw Industries, Inc. for the replacement of carpeting at the El Segundo Library, (2) Authorize the City Manager to execute the contract in a form as approved by the City Attorney; and (3) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION: In January 2005, new carpeting was installed on the Library's main floor in the public and staff office areas to coincide with the opening of the new meeting rooms Staff is now requesting to complete re- carpeting of the downstairs areas of the Youth Services Division and the Matsui Meeting Room The existing carpet in those areas is now 14 years old and has become badly worn from the daily use of children's activities, programs, community meetings, and water damage from flooding Staff recommends that Public Works maintenance funds and Library Developer Fees be used at this time to finish re- carpeting the remaining areas of the library The State contract with Shaw Industries, Inc was secured through a competitive bid process and Cities can piggyback onto the contract to take advantage of the competitive pricing provided ATTACHED SUPPORTING DOCUMENTS None FISCAL IMPACT Operation Budget $30,000 Amount Requested $35,000 Account Numbers- 001. 253 - 0000 -1253, 405 -400- 0000 -6215 Project Phase- Award of contract of Public Works & Cable Services 16 i8� EL SEGUNDO CITY COUNCIL MEETING DATE: July 18, 2006 AGENDA ITEM STATEMENT AGENDA HEADING. New Business AGENDA DESCRIPTION: Consideration and possible action regarding the adoption of a Resolution establishing Utility Service Priority Regulations pursuant to Government Code § 65589 7 giving affordable / access to existing sewer capacity and water COUNCIL ACTION: 1 Adopt a Resolution establishing the Utility Service Priority Regulations in accordance with Government Code § 65589.7, 2 Alternativelv discuss and take other action related to this item Government Code § 65589 7 [as amended by SB 1087(attached) in 2005] requires public agencies to adopt a written policy that gives development projects with an affordable housing component priority access to existing water supplies and sewer capacity The law generally limits the City's ability to deny or limit such services on the sole basis that a development project has an affordable housing component This policy should have been adopted before July 1, 2006 and must be updated every five years afterward The proposed policy would require the City to give priority to development projects with affordable housing when there are competing development projects seeking utility services from a system with limited wastewater capacity or water supply. The City completed a sewer master plan in 2002 and recently adopted an Urban Water Management Plan Staff can rely upon these plans when Implementing the proposed Policy There is no Immediate need for additional engineering studies ATTACHED SUPPORTING DOCUMENTS: A Proposed Draft Resolution B Policies and Procedures — Utility Services Priority Regulations C Senate Bill No 1087 FISCAL IMPACT Operating Budget- N/A Amount Requested NIA Account Number- NIA Project Phase NIA Appropriation Required No BY.� DATE: Steve Finton, Director of Public Works REVIEWED DATE: 7/11/06 Jeff Ity Manager i D RESOLUTION NO. A RESOLUTION ADOPTED IN ACCORDANCE WITH GOVERNMENT CODE § 65589.7(B) TO ESTABLISH POLICIES AND PROCEDURES GIVING PRIORITY WATER AND WASTEWATER SERVICES TO PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER INCOME HOUSEHOLDS. The City Council of the city of El Segundo resolves as follows SECTION 1 The City Council finds as follows A. The City is committed to providing potable water and wastewater collection, treatment, and disposal services (collectively, "utility services ") to all persons within its jurisdiction in compliance with all applicable laws, B Government Code § 65589 7 requires the City to adopt a written policy that, among other things, provides the following 1 Gives priority utility services to proposed housing developments that help meet the regional need for lower income housing, and 2 Except in limited circumstances, prevents the City from denying or limiting a request for utility services solely because a proposed development includes affordable housing components. SECTION 2 The policies and procedures set forth in attached Exhibit "A," which is incorporated by reference, are adopted as the City's policies in compliance with Government Code § 65589 7 ( "Utility Service Priority Regulations ") SECTION 3 The City Manager, or designee, is authorized to implement this Resolution and to adopt such administrative policies and procedures needed to fulfill the purpose of this Resolution SECTION 4• At least once every five years from July 1, 2006, the City Manager, or designee, will review the Utility Service Priority Regulations and recommend any amendments to the City Council in compliance with Government Code § 65589 7 SECTION 5 This Resolution will become effective immediately upon adoption -I- 97 PASSED AND ADOPTED this _ day of 2006 Attest. Cindy Mortesen, City Approved as to MARK D HEN LIM Berger, Assloant City Attorney IPA Kelly McDowell, Mayor .c�O POLICIES AND PROCEDURES - Exhibit A Lilllllililll`Ni*z,TK43a1.`" zKol OU llll` a01419)ILINVION[. I. Purpose This Policy and Procedure ( "Policy") is adopted in accordance with Government Code § 65589 7 for the purpose of establishing objective criteria for prioritizing potable water and wastewater services to proposed projects with an affordable housing component II. Applicability This Policy applies to applications for development projects filed with the City in accordance with applicable law seeking land use approvals and which require utility services In the event of any conflict between this Policy and Government Code § 65589.7, including any amendments, the provisions of Government Code § 65589.7 will apply III. Definitions Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this Policy Words and phrases not given a meaning by this Policy have the meaning set forth in Government Code § 65589.7 "Affordable housing" means those residential dwelling units sold or rented to lower income households (as defined in Health and Safety Code § 50079 5) at an affordable housing cost (as defined by Health and Safety Code § 50052 5) or affordable rent (as defined in Health and Safety Code § 50053) proposed in a development project "Development project" means any construction proposal that includes residential dwelling units and requires utility services "Land use approvals" means City ministerial or discretionary approvals required for constructing development projects in accordance with applicable law "SSMC" means the El Segundo Municipal Code "UWMP" means the City's urban water management plan as updated in accordance with applicable law At the time this Policy is established, the most recent UWMP was adopted by the City Council on El Segundo_ "Utility services" means services provided by the City to residential dwelling units for delivering potable water or collecting, treating, and disposing wastewater Page 1 of 4 N \Util Sery Pnonty \UnLty Service Priority ES Policy doc POLICIES AND PROCEDURES - Exhibit A UTILITY SERVICES PRIORITY REGULATIONS "WSA" means a water supply assessment as required for development projects proposing 500 or more residential dwelling units as set forth in Government Code § 66473(b)(1) and Water Code § 10911(c) IV. General Policy To the extent practical, the City will provide utility services that: A Has sufficient capacity to accommodate the protected development anticipated by the El Segundo General Plan, B. Provides all existing or future development with utility services in the most economical, practical, and environmentally sensitive manner feasible For example, and without limitation, collecting wastewater with gravity sewers is preferred over pumping systems in order to mitigate the financial and environmental impact on the community V. Utility services — Excess Capacity or Supply Should the City have excess capacity for wastewater utility services or sufficient supply (as determined by the UWMP or, if applicable, a WSA) for potable water utility services, then the City may consider whether to provide utility services for development projects without regard to affordable housing. Under such circumstances, the City may provide utility services to development projects in accordance with applicable law including, without limitation, the ESMC VI. Utility services — Limited Capacity or Supply Except as otherwise provided, should the City have limited capacity for wastewater utility services or insufficient supply (as determined by the UWMP or, if applicable, a WSA) for potable water utility services, then the City must give priority to development projects with affordable housing when considering whether to provide utility services in accordance with Government Code § 65589.7 VII. Denial of Utility services The City cannot deny, condition, or offer reduced utility services to, an application for utility services for a development project that includes affordable housing unless the City Council makes written findings as follows. A. As shown by a written engineering analysis and report Page 2 of 4 N \Uel Se Pn on ty\Utility Smicc Pnonty ES Policy doc POLICIES AND PROCEDURES - Exhibit A UTILITY SERVICES PRIORITY REGULATIONS The City has insufficient treatment or collection capacity to provide wastewater utility services sufficient to serve the needs of a development project with affordable housing, or 2 The City has an insufficient supply of potable water to provide water utility services sufficient to serve the needs of a development project with affordable housing. B The City must comply with orders issued by a regulatory agency, such as the Regional Water Quality Control District, that prohibits new potable or wastewater connections, or C The development project applicant failed to agree to reasonable terms and conditions related to providing utility services generally applicable to development projects including, without limitation, paying impact fees in accordance with the ESMC and applicable law VIII. Required reports A At least once every five (5) years after July 1, 2006, the City Manager, or designee, must prepare a report for the City Council that identifies the following Available wastewater collection, treatment, and disposal capacity, Potable water supply, as evidenced through the UWMP or WSA for a particular development project; The anticipated demand for utility services by development projects with affordable housing; Actions required to accommodate demand if there is adequate capacity or supply, and Any changes to this Policy required for implementing the requirements of Government Code § 65589 7 B The report required by this Section must consider information set forth in the then existing General Plan; applicable Specific Plans; any master plans for potable or wastewater infrastructure; the UWMP, and any applicable WSAs Page 3 of N \Uel Sm Pnonty\Utility Service Primly ES Policy doc �Jl POLICIES AND PROCEDURES - Exhibit A UTILITY SERVICES PRIORITY REGULATIONS IX. Limitations of this Policy This Policy is applicable only to considering whether the City can provide utility services to development projects Nothing in this Policy constitutes a limitation on the City ability to otherwise consider whether or not to issue land use approvals for development projects in accordance with applicable law including, without limitation, to condition approvals for development projects regarding matters other than providing utility services. Page 4 of 4 N Wtil Sery Pnonty \Utility Service Pnonty ES Policy doc 1 (, Senate Bill No. 1087 CHAPTER 727 An act to amend Section 65589 7 of the Government Code, and to add Section 10631 1 to the Water Code, relating to housing [Approved by Govemor October 7, 2005 Filed with Secretary of State October 7, 2005 ] LEGISLATIVE COUNSEL'S DIGEST SB 1087, Florez Housing elements services (1) The Planning and Zoning Law requires each city, county, or city and county to prepare and adopt a general plan for its Jurisdiction that contains certain mandatory elements, including a housing element One part of the housing element is an assessment of housing needs and an inventory of resources and constraints relevant to meeting those needs That law also requires that the housing element adopted by the legislative body of the city, county, or city and county and any amendments made to that element be delivered to all public agencies or private entities that provide water services at retail or sewer services within the territory of the legislative body The Planning and Zoning Law also requires each public agency or private entity providing these services to grant a priority for the provision of available and future resources or services to proposed housing developments that help meet the legislative body's share of the regional housing need for lower income households as identified in the housing element and any amendments to the housing element This bill would require that the adopted housing element and any amendments be delivered Immediately to all public agencies or private entities that provide water or sewer services, as specified, would apply these provisions to proposed developments that Include housing units affordable to lower Income households, and would require, on or before July 1, 2006, that these public agencies or private entities adopt written policies and procedures, and at least once every 5 years thereafter, with specific objective standards for provision of these services in conformance with these provisions The bill would also require the Public Utilities Commission to adopt written policies and procedures for use by private water and sewer companies regulated by the commission in a manner consistent with these provisions By increasing the duties of local public officials, the bill would Impose a state - mandated local program This bill would also provide that a provider of water or sewer services may not deny or condition the approval of an application for services, or reduce the amount of the services applied for, if the proposed development includes housing affordable to lower income households, except upon making specified findings 89 Ch. 727 —2— The bill would make these provisions applicable to charter cities (2) The Urban Water Management Planning Act requires urban water suppliers to prepare and adopt urban water management plans for submission to the Department of Water Resources, which identify and quantify the existing and planned sources of water available to the water supplier's service area based on specified factors This bill would also require that the water use projections required by these provisions include the projected water use for single -family and multifamily residential housing for lower income households as identified in the housing element of any city, county, or city and county in the service area of the supplier (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state Statutory provisions establish procedures for making that reimbursement This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above The people of the State of California do enact as follows SECTION 1 Section 65589 7 of the Government Code is amended to read 65589 7 (a) The housing element adopted by the legislative body and any amendments made to that element shall be immediately delivered to all public agencies or private entities that provide water or sewer services for municipal and industrial uses, including residential, within the territory of the legislative body Each public agency or private entity providing water or sewer services shall grant a priority for the provision of these services to proposed developments that include housing units affordable to lower income households (b) A public agency or private entity providing water or sewer services shall adopt written policies and procedures, not later than July 1, 2006, and at least once every five years thereafter, with specific objective standards for provision of services in conformance with this section For private water and sewer companies regulated by the Public Utilities Commission, the commission shall adopt written policies and procedures for use by those companies in a manner consistent with this section The policies and procedures shall take into account all of the following (1) Regulations and restrictions adopted pursuant to Chapter 3 (commencing with Section 350) of Division 1 of the Water Code, relating to water shortage emergencies (2) The availability of water supplies as determined by the public agency or private entity pursuant to an urban water management plan 89 1 1 _ 3 _ Ch. 727 adopted pursuant to Part 2 6 (commencing with Section 10610) of Division 6 of the Water Code (3) plans, documents, and information relied upon by the public agency or private entity that is not an "urban water supplier," as defined in Section 10617 of the Water Code, or that provides sewer service, that provide a reasonable basis for making service determinations vtdes water or sewer (c) A public agency or private entity royal id an application for services shall not deny or condition the app application services to, or reduce the amount of services applied for by, a proposed development that includes housing units affordable to c fie households unless the public agency or private entity makes spe written findings that the denial, condition, or reduction is necessary due to the existence of one or more of the following (1) The public agency or Private i have "sufficient water supply," as in paragraph (2) of subdivision (a) of Section 66473 7, or is operating under a water shortage emergency as waterftreat min e nt ori don s t bahon capacity, Co ode, or does not have sufficient serve the needs of the proposed development, as demonstrated by a written engineering analysis and report providing water service is (2) The public agency or private entity P subject to a compliance order issued by the State Department of Health Services that prohibits new water connections ovtdm sewer service does not (3) The public agency or private entity providing written engineering analysis lysis and report on the condition of the treatment or collection works, to serve the needs of the proposed development (4) The public agency or private entity providing sewer service is under an order issued by a regional water quality control board that prohibits new sewer connections (5) The applicant has failed to agree to reasonable terms and conditions relating to the provision of service generally applicable to dove opment ry projects seeking se ice from the public agency or p entity, al including, but not limned requirements of ncharge� imposed pursuantrto laws and regulations or pay m ent of Section 66013 (d) The following definitions apply for purposes of this section (1) "Proposed developments that include housing units affordable to lower income households" means that dwelling units shall be sold or rented to tower income households, as defined in Section 50079 5 of the in Health and Safety Section 500525of he Code, affordable l ealth and safety Code housing an affordable rent, as defined in Section 50053 of the Health and Safety Code (2) "Water or sewer services" means supplying service through a pipe or other constructed conveyance for a residential purpose, and does not include the sale of water for human consumption by a water supplier to another water supplier for resale As used in this section, "water service" 89 -4— oz private entity applies only to water Ch. 7x7 ncmg agency ect to Chapter 4 (G0 d Safety provided by a public bhc wa ter systems subs of the Health an supplied {loin 16275) of Part 12 of Division 104 e ealstulg with Section a no ndamd ptsng a housing to neither enlarg adopting legislative Cc) This section is Intel' dor city and county I d by legislative of a city, ousmg element adou he agency or private authority that element to a P element Failure to delude to ubltc agency or body ox amendments o ro et nor exempt al The special districts entity pTpvid di water or sewer services shall neither invalidate as defined roval of a developmatuans u der this section meat, or app from the obligations to develop private entity are acluded within this section rovide water or sewer services relat that this section shall be which p e of Section 564nd declares because the m subdivision O e finds including charter cities, f vital (fl The Legislature counties, is a matter o applicable to all cities an Of affordable housing Legislature all that the lack the W atex Code, to read 10631 ortance required by Section SEC x o statewide imP ro ecnona re9 Section m11 Section use Is P J le- family andas defined m 10631 1 (a) ro ected water use for sing households' needed for lower incomeCode as identified in the shay Inc lud ousing eaIth and Safety m the service area residential h74 5 of the H or city and county Section ���nenl of any city' County, ro ected housing tier for lower Of the supplier islatute that dreesident al housing with the (b) It is the intent of the an mulufamdy eomPMYmg rant a le family a supplier in ant Code m g water use for sing wdl assist 7 of the Governor Income households 65589 amts affordable to lower requirement under Section that Sections 65104 and priority for the provision of service to housing The Legislature finds and declares encies with aothonty to income households rovide local ag SEC 3 or level of service mandated by 6b014 of the G°Vemment Code p a for the program ursuant to Section levy fees sufficient to pay aired by this act P a local agency or act this 4 No reimbursement is required charges, fees, °r the authority to levy ar level of service in 6 of Article XIIIB of the California Constimtron service ent Code for the PT0911L is act school district has vesthatth assessments sufficient to pay of Section Mandates determVe local by this act, within the meaning on Sate Mandates to However, if the Comm ursuant of athe costs in by the 4 of Title 2 contains other 17500) of Division agencies and school districts for those costs shall be made p 7 (commencing with Section merit Code Govern O 99 1 t1 t) EL SEGUNDO CITY COUNCIL MEETING DATE: July 18, 2006 AGENDA ITEM STATEMENT AGENDA HEADING New Business AGENDA DESCRIPTION: Consideration and possible action regarding funding for the development of capital protects (fire station and athletic fields) on approximately six acres located on the northeast corner of Mariposa Avenue and Nash Street (Fiscal Impact $9,800,000 estimated) RECOMMENDED COUNCIL ACTION. 1) Provide direction to staff regarding allocation of funds for construction of a new fire station and athletic fields at the northeast corner of Mariposa Avenue and Nash Street, 2) direct staff regarding the appropriate designation of approximately $9,800,000 in funding from account numbers 001 -400- 8202 -8490 ($59 million — Community Center, 302 - 400 - 8202 -8998 ($300,000 — Soccer Fields), and 301 - 400 - 8207 -8645 ($2 6 million — Fire Station #2), 3) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION, The City is expected to take possession of approximately 6 acres located at the northeast corner of Mariposa Avenue and Nash Street Approximately five acres is anticipated to be purchased by the City pursuant to a development agreement between the City and Thomas Properties Group (TPG) and an additional acre is being donated to the City by TPG under the terms of the same agreement From the outset of this protect, the City has planned to develop soccer fields on the five -acre site and construct a new fire station on the adjacent one -acre site The City has been setting aside funds for both projects over the past several years, but there has been no specific request from staff for Council direction or action taken with regard to the expenditure of funds for these improvements Accordingly, staff is seeking to earmark funds to the two projects and requesting the City Council to provide direction regarding the allocation of funds (Please see attached pages marked "Background and Discussion ") ATTACHED SUPPORTING DOCUMENTS None FISCAL IMPACT: $9,800,000 estimated Operating Budget $9,800,000 Amount Requested $9,800,000 Account Number 001 -400- 8202 -8490; 302 -400- 8202 -8998, 301 -400- 8207 -8645 Project Phase: Appropriation Required: _Yes X No ORIGINAT . DATE. July 13, 2UU6 Jeff Cit Manager is 197 Background and Discussion (con't): Staff has identified approximately $9 8 million in existing funds that are generally viewed as the most appropriate fiscal resources available for the construction of the two projects Following is a brief summary of those available funding sources Community Center $5 9 million Soccer Field $300,000 Fire Station Capital Improvement $2 6 million Estimated land value - Fire Station #2 site $1 million To move forward with the development of the fire station and soccer field projects, 1t would be appropriate to allocate these funds to the two projects Estimated Costs of New Fire Station Staff has not completed design on a new fire station slated to replace the existing Fire Station #2 However, substantial work has been completed on a "concept design " Staff has been examining the concept design for a two -story fire station that would be approximately 14,200 square feet in size However, recent trends of increasing construction costs may force the City to reconsider its priorities with regard to anew fire station facility A conservative estimate for construction cost is $400 /square foot Under the current concept design, construction costs would be approximately $5 68 million Also, the Fire Department estimates that an additional $22 million will be needed to provide equipment, furniture, and on -site and off -site improvements for the new station Obviously, these are estimates and are subject to modification However, it does lead to a preliminary cost estimate of $7 88 million to construct and outfit a new fire station It should be noted that, the Interim Fire Chief, Administrative Battalion Chief and City Manager recently toured a fire station in another jurisdiction that was approximately 11,500 square feet in size It is possible that a station of that approximate size could serve the City's and Fire Department's needs adequately Costs related to construction and outfitting an 11,500 square foot facility are estimated at $4 6 million, plus $2 2 million in outfitting costs for an estimated total of $6 6 million The Council should note additionally that the construction cost estimate of $400 /square foot is conservative The Public Works Director is surveying surrounding agencies and finding that they anticipate, in some cases, that construction costs may exceed $550 /square foot In sum, there is no accurate way to measure such costs when anticipated construction may be many months away Estimated Costs of Athletic Fields A City Council appointed Athletic Fields Task Force has been working closelywith a consulting design firm on the appropriate development of soccerfields proposed forthe approximately 5- acre site on the northeast corner of Mariposa Avenue and Nash Street That item will be discussed, as well, at the July 18 City Council meeting under a separate agenda item The Public Works Director's estimated construction costs for the field configuration recommended by the Task Force is $4 389 million, including a 10% contingency However, there are a number of options that could reduce the ultimate construction costs for that facility It should be noted as well that that the concerns stated above with regard to rising construction costs �J8 Background and Construction (con't): would similarly apply to this project Staff is seeking direction from the City Council on the following items First allocation of the total budget for both projects Second, an approximate target amount for construction of the fire station and soccer field facilities, and, third, authorization to begin design on both facilities based on those amounts EL SEGUNDO CITY COUNCIL MEETING DATE: July 16, 2006 AGENDA ITEM STATEMENT AGENDA HEADING- New Business AGENDA DESCRIPTION: Consideration and possible action regarding a presentation from RJM Design Group related to the construction of an athletic facility at the northeast corner of Mariposa Avenue and Nash Street and recommendations from the Recreation and Parks Commission relative to the athletic facility RECOMMENDED COUNCIL ACTION: Recommendation — (1) Receive and file presentation by RJM Design Group, (2) Consider recommendations of the Recreation and Parks Commission and provide Council direction to staff regarding further development of the athletic facility, and (3) Alternatively, discuss and take other action related to this item BACKGROUND & DISCUSSION: The City is expected to take possession of a five -acre parcel at the northeast corner of the intersection of Mariposa Avenue and Nash Street for development of an athletic facility On February 7, 2006, City Council entered into an agreement with RJM Design Group for design of the facility The Athletic Fields Task Force, composed of residents, City Councilmember Eric Busch, City staff and members of the soccer community, was established to determine the desired components of the athletic facility The Task Force and RJM met on several occasions and developed a list of desired facility elements The following features were recommended by the Recreation and Parks Commission as being the most desired 1 Perimeter fencing (tubular steel) 2 Field lighting to permit night -time sports activities 3 Restrooms 4 Synthetic Grass 5 Maintenance building 6 Full size soccer fields 7 Tot play area (Background and Discussion continued on next page) ATTACHED SUPPORTING DOCUMENTS: Design concept drawings FISCAL IMPACT: Operating Budget: N/A Amount Requested: N/A Account Number, N/A Project Phase. N/A Appropriation Required: Not at this time Director of Public Works DATE: DA 19 • -UU BACKGROUND & DISCUSSION: (continued) Current Design Features RJM took the direction from the task force and has completed 50% design drawings and estimates which include all features developed by the Task Force and recommended by the Recreation and Parks Commission as follows Estimated Cost of Recommended Features Feature Gradin , Drainage, Sewer, water ad Estimated Cost $555,000 Synthetic Grass $1,460,000 Irrigation $70,000 Tubular Steel Fencing $165,000 Lighting $325,000 Restroom/ Concession Building w/ vapor barrier $450,000 On -site sidewalks and mow stns $190,000 Amenities - tables, benches, drinking fountains, shade structure, trash receptacles $130,000 Raised central plaza $195,000 Enhanced entry ate $120,000 Tot play area $95,000 Non-grass landscaping $235,000 Subtotal 10% contingency Grand Total $3,990,000 $399,000 $4,389,000 Project Options to Save Costs Upon seeing the above estimate, staff set out to identify ways to save costs To do so, staff identified the least expensive, but functional facility configuration then looked at features to add to enhance the facility It is recommended that Council review the project features below and determine which to include in the project Project Features Cost* Minimum Project The lowest cost facility would consist of a simple irrigated 1 grass field with a chain link perimeter fence The turf in this $1,100,000 configuration would be the least durable and the field would require significant rest and recuperation periods after periods of use Add field lighting 2 Add pole mounted athletic field lighting to permit activities at +$325,000 night 2-01 3 Add restroom/ concession building with vapor barrier +$450,000 Add 6" sand bedding and subdrains under grass 4 Sand bedding would increase the durability of the grass and +$355,000 permit more play -time Add on-site sidewalks, curbing and mow strips 5 Concrete walkways would reduce turf wear in high traffic +$190,000 areas and mow strips would facilitate maintenance 6 Add amenities such as tables, benches, drinking +$130,000 fountains, shade structure, trash receptacles 7 Add non -grass landscaping around perimeter of site +$235,000 Add synthetic grass Durability of synthetic turf eliminates down time required to 8 allow natural grass to recover from periods of heavy use +$1,060,000 With no mowing required, maintenance costs are also reduced Add raised central plaza g This platform would raise the elevation of the restroom/ +$195,000 concession building and provide several concrete terraces to facilitate seating and viewing of athletic events Add enhanced entry gate 10 This item would add architectural gates and masonry at the +$120,000 entrance to provide a more architecturally significant entrance Add tot play area 11 The play area would consist of play equipment on a +$95,000 rubberized surface 12 Add tubular steel perimeter fencing in lieu of chain link +$90,000 * It is recommended that a 10% contingency be added to account for additional work required during construction Schedule Upon receiving Council direction on the final project scope, staff will direct the consultant to complete the plans and specifications, Upon completion of the plans, staff will request Council approval of the plans and permission to solicit construction bids It is estimated that the project could be out to bid in November 2006 with construction commencing in February 2007 If natural turf is selected, it is optimal that the planting take place during the spring /summer growing season 000 6w y ). .. �` e ^ - _ ` \a \|\ -- -- _ ` 0z0 / § Q ��\ [ h § §k§ !� } _s(D e + x |$§ ƒ, § Ou w $ •! | k% a% ^ � ( i . NASH ^ » /[ (f[!!)4 11 0 KFIN I ! \).g Ml; 11 p 11 0 SO ! % �'[k, |@•% E� , ;l! ,' 2= B� &§a ' § ] §§ |;r2§ 0: :s J i 9 �wlrz �9 r x � "PT-, --A Vic t I P mW1400 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT MEETING DATE: July 18, 2006 AGENDA HEADING: New Business Consideration and possible action regarding the authorization for the Police Department to purchase a Mobile Mutual Aid Emergency Response Vehicle for use by Area G law enforcement agencies utilizing Federal Homeland Security Grant Funds (Fiscal Impact. (1) Pursuant to El Segundo City Code Sec. 1 -7 -10, waive the bidding process based upon sole source vendor, Universal Specialty Vehicles, Inc. (USV), for a Mobile Mutual Aid Emergency Response Vehicle from the FY 2005 Urban Area Security Initiative (UASI) funds awarded to the El Segundo Police Department. (2) Authorize the City Manager to execute a Professional Services Agreement approved by the City Attorney with USV. (3) Alternatively, discuss and take other action related to this item. BACKGROUND & DISCUSSION: On February 21, 2006, the City Council approved the acceptance of $235,000 from the Department of Homeland Security (DHS), UASI grant program, FY 2005, to purchase a Mobile Mutual Aid Response Vehicle (MMARV) for use by police department and all Area G law enforcement agencies. On September 6, 2005, the City Council approved the acceptance of $96,990 from State Homeland Security Grant Program (SHSGP) Portions of these funds were utilized to purchase radios for installation in the MMARV Those radios have been purchased and are available for installation in the vehicle. Continued on next page ATTACHED SUPPORTING DOCUMENTS: 1 Attachment A (Sales Agreement). FISCAL IMPACT: Operating Budget: Amount Requested: Account Number: Project Phase: $235,000 $235,000 001- 400 - 3101 -8106 Yes No ORI"ATED BY: DATE: July 11, 2006 U BACKGROUND & DISCUSSION (continued) In the 2006 UASI grant the El Segundo Police Department is scheduled to receive $25,000 for the MMARV. If these funds are not approved, up to $25,000 in equipment options will be removed from the vehicle. The UASI Grants are provided on a 100% federal share formula; the Grant reimbursing the City of El Segundo for actual expenditures related to the pre- approved purchased of the MMARV. On February 21, 2006, the Police Department received authorization from City Council to purchase a MMARV utilizing federal Homeland Security Grant Funds The MMARV is designed to be an integrated mobile law enforcement vehicle to address response, command, control, and logistical issues in terrorism response. This vehicle would centralize all resources and provide a much need resource to the Area G region. The MMARV will house biological and chemical personal protection equipment for Area G law enforcement personnel and provide a mobile interoperability radio bridge. This radio bridge will allow seamless communication with other law enforcement agencies (local, county, state and federal), fire departments, school districts, commercial /industrial facilities, etc , during tactical deployment Three other mutual aid areas within Los Angeles County (Area C, Alhambra PD, Area D, La Verne PD; Area E, Whittier PD) have also received federal UASI grant funds to purchase MMARVs Over the past year representatives from the four mutual aid areas have met on a regular basis to discuss and design the MMARVs. All four vehicles will be exact in design to enhance and improve mutual aid cooperation throughout LA County. Recently, the City of Alhambra entered into an agreement with Universal Specialty Vehicles (USV) to purchase a MMARV. Through a "piggy- back" arrangement, USV is offering the same agreement to the City of El Segundo as well as the Cities of La Verne and Whittier. USV can build all four MMARVs during the same time period. Based on these factors, the El Segundo Police Department is requesting a sole source purchase form USV The terms of the agreement include an initial down payment of $58,953, an additional payment of $58,953 is due at the halfway point of construction, and the remaining balance of $137,094 is due upon inspection and acceptance of the finished product by the City of El Segundo The delivery date is estimated to anywhere from 120 -240 days after receipt of the down payment and acquisition of the chassis by Universal Specialty Vehicle, Inc It is recommended that the City contribute $1,500 a year to the Area G fund to support the replacement of the vehicle and the mobile interoperability radio bridge The vehicle has an estimated life of 25 years, the radio equipment has an estimated life of 8 years An agreement between the Area G police chiefs to fund the replacement of the vehicle and electronic equipment has been discussed and agreed to in principal. 20 7 BACKGROUND AND DISCUSSION (continued) Conditions required under this grant 1) All equipment purchased under the grant funding is required to be maintained and replaced under the City's capital equipment replacement standards 2) The City of El Segundo must maintain an inventory system for all items purchased under DHS grant programs 3) The City is required to certify that all equipment purchased can only supplement on -going or future programs. Supplement is defined as "funds will be used to supplement existing funds and will not replace (supplant) funds that have been appropriated for the same purpose" 2 u8 ATTACHMENT ONE ZFNN ��ss.i s�aun s�aES, we. SALES AGREEMENT THIS SALES AGREEMENT, (hereinafter referred to as the "Agreement "), is made and entered into this 6th day of July, 2006, by and between Universal Specialty Vehicles, Inc , ( "USV ") a California corporation with headquarters located at 19052 Harvill Avenue, Perris, California 92570, and the City of El Segundo (" El Segundo ") located at 350 Main Street, El Segundo, California 90245 ( "Purchaser "). 1 OBLIGATION TO PURCHASE AND SCOPE OF SERVICES. The Purchaser hereby agrees to purchase (1) one Mobile Mutual Aid Emergency Response Vehicle (the "Command Post ") for the sum of Two Hundred Fifty -five Thousand and .00 /100 dollars ($ 255,000.00) This obligation to purchase shall be referred to herein as the "Order." USV shall manufacture the Command Post in accordance with the plans and specifications set forth in Attachment A of this agreement which were prepared by the Purchaser and for which the Purchaser is entirely responsible USV disclaims any intent to warrant the merchantability or fitness for particular purpose or use of the Command Post and disclaims warranties of merchantability and all other warranties except as specifically set forth in Exhibit B hereto. 2. DELIVERY. The Mobile Mutual Aid Emergency Response Vehicle will be deemed received by the Purchaser when delivered to the City of El Segundo Police Department, 348 Main Street, El Segundo California, 90245. Delivery costs have been determined and are included in the purchase price The estimated date of delivery is 120 -240 days after receipt of the deposit under this agreement and acquisition of the chassis 3 PAYMENT. Purchaser shall make an initial 25% down payment of $58,953.00 due in cash upon execution of this agreement. Any check should be made payable to "Universal Specialty Vehicles, Inc " An additional 25% down payment of $58,953 00 will be due upon halfway construction of the vehicle. The remaining balance of $137,094 00 (includes sales tax) is due upon completion after Purchaser has inspected and reasonable accepted the Command Post. Such inspection shall take place at USV's manufacturing location. California sales tax, if applicable, is the responsibility of USV. In the event that Purchaser fails to timely or reasonable accept delivery of the Command 09 Post, interest shall accrue at the rate of 12 per cent per annum on any unpaid balance of the purchase price stated above 4 WARRANTY. USV warrants the Command Post in accordance with Attachment B to this agreement Except as expressly set forth in such warranty, USV disclaims any other representation or warranty regarding the Command Post. 5. CHANGE ORDERS In the event Purchaser desires prior to delivery to make changes in the specifications for the Command Post, the Purchaser shall notify USV of the proposed changes and a proposed amount that Purchaser proposes to pay for such changes. If such changes are acceptable to USV, then USV shall prepare an amendment to this agreement providing for such changes and the increased amount If the changes are not acceptable to USV, then the parties shall meet and confer to resolve such issue. 6 TERMINATION Purchaser may terminate this agreement at any time upon written notice to USV; provided, however, that USV shall have no obligation to refund any amounts paid by Purchaser hereunder and Purchaser shall continue to be responsible for reimbursing USV for the value of any (a) work performed by USV and (b) materials relating to the Command Post that have previously been ordered by USV. Upon payment of such further amounts, Purchaser shall be released from its obligations under this agreement. 7 TITLE AND REGISTRATION Title to the Command Post shall remain in USV under acceptance and final payment by Purchaser. All Department of Motor Vehicle documentation will be processed by USV and the appropriate documents sent to the City of El Segundo for appropriate signature. Temporary title will be issued under permanent title is received by USV and sent to the City of El Segundo Purchaser shall pay in advance for the costs of registration 8. MISCELLANEOUS PROVISIONS. (a) Notices Any notice required or contemplated hereunder shall be in writing and shall be effective upon personal delivery or five days after deposit in the United States mail, registered or certified, return receipt requested, addressed as set forth below or to such other addresses as may be specified in like manner (b) Attorneys Fees. If either Party brings an action or files a proceeding in connection with the enforcement of its respective rights or as a consequence of any breach by the other Party of its obligations hereunder, then the prevailing Party in such action or proceeding is entitled to have its reasonable attorneys' fees and out -of- pocket expenditures paid by the losing Party The "prevailing Party" in such action or proceeding is the Party that obtains substantially the relief it was seeking in such action or proceeding, as determined by the court. : �1 G (c) Dispute Resolution The parties agree that disputes will be submitted to neutral non - binding (except as provided herein) arbitration The exclusive venue for any arbitration is 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 The decision rendered by the arbitrator will become binding upon the parties unless appealed to the Los Angeles County Superior Court 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 nonappealmg party's attorney's fees and court costs. (d) Entire Agreement. This agreement constitutes the entire agreement between the parties relating to the subject matter hereof and may not be amended, supplemented or vaned except in a writing executed by the party to be bound. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above. CITY OF El SEGUNDO By I�(ZiL�i Title Address for Notices UNIVERSAL SPECIALTY VEHICLES, INC. M Name- Title. 211 Address for Notices- Universal Specialty Vehicles, Inc. 19054 Harvill Avenue Pems, Ca. 92570 Ph. (951) 943-7747 Fax(951)943 -7321 www.usvl.com William F. Capps, Esq. Jeffer, Mangels, Butler, and Marmaro 1900 Avenue of the Stars Los Angeles, Ca. 90067 Ph (310) 201 -3513