2007 SEP 04 - CC PACKET2
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AGENDA
EL SEGUNDO CITY COUNCIL
COUNCIL CHAMBERS - 350 Main Street
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The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items.
Unless otherwise noted in the Agenda, the Public can only comment on City - related business that is within the
jurisdiction of the City Council and /or items listed on the Agenda during the Public Communications portions of the
Meeting. Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing
portion of such item. The time limit for comments is five (5) minutes per person.
Before speaking to the City Council, please come to the podium and state: Your name and residence and the
organization you represent, if desired. Please respect the time limits.
Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City
Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior Tuesday). The request must
include a brief general description of the business to be transacted or discussed at the meeting. Playing of video tapes
or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days
prior to the meeting and they do not exceed five (5) minutes in length.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact City Clerk, 524 -2305. Notification 48 hours prior to the meeting will enable the City to
make reasonable arrangements to ensure accessibility to this meeting.
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, SEPTEMBER 4, 2007 - 5:00 P.M.
Next Resolution # 4520
Next Ordinance # 1408
5:00 P.M. SESSION
CALL TO ORDER
ROLL CALL
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on
behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to
addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a tine of $250.
CLOSED SESSION:
The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government
Code Section §54960, et seq.) for the purposes of conferring with the City's Real Property Negotiator; and /or
conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under
Government Code Section §54957 (Personnel), and/or conferring with the City's Labor Negotiators; as follows:
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CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(a)) — 1
matters
1. City of El Segundo vs. City of Los Angeles, et. al. LASC No. BS094279
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code §54956.9(b): -0- potential case (no
further public statement is required at this time); Initiation of litigation pursuant to Government
Code §54956.9(c): -0- matter.
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957): -0- matters
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6): -2- matters
1. Labor Negotiator: Jeff Stewart, City Manager
Represented Employees: City Employees Association (CEA)
2. Labor Negotiator: Jeff Stewart, City Manager
Represented Employees: Police Support Services Employees Association (PSSEA)
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0- matter
SPECIAL MATTERS: -0- matter
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AGENDA
EL SEGUNDO CITY COUNCIL
COUNCIL CHAMBERS - 350 Main Street
The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items.
Unless otherwise noted in the Agenda, the Public can only comment on City - related business that is within the
jurisdiction of the City Council and /or items listed on the Agenda during the Public Communications portions of the
Meeting. Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing
portion of such item. The time limit for comments is five (5) minutes per person.
Before speaking to the City Council, please come to the podium and state: Your name and residence and the
organization you represent, if desired. Please respect the time limits.
Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk or City
Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior Tuesday). The request must
include a brief general description of the business to be transacted or discussed at the meeting. Playing of video tapes
or use of visual aids may be permitted during meetings if they are submitted to the City Clerk two (2) working days
prior to the meeting and they do not exceed five (5) minutes in length.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact City Clerk, 524 -2305. Notification 48 hours prior to the meeting will enable the City to
make reasonable arrangements to ensure accessibility to this meeting.
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, SEPTEMBER 4, 2007 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER
INVOCATION —
PLEDGE OF ALLEGIANCE — Council Member Jim Boulgarides
Next Resolution # 4520
Next Ordinance # 1408
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PRESENTATIONS -
(a) Proclamation recognizing the 220th Anniversary of the drafting of the Constitution of the
United States of America.
ROLL CALL
PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on
behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to
addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all
comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The
Council will respond to comments after Public Communications is closed.
1. Pursuant to the procedure set forth on the first page of this Agenda, resident Jack
Axelrod has requested that the following items be placed on the City Council
Agenda for possible discussion and action by the Council. The Council is not
required to discuss or take action on these items.
1. Cease starting public meetings with a religiously based "invocation ". If the
community wants to hold a prayer meeting, let it be following city business.
2. End the practice of starting Council Meetings with a group Loyalty Oath. Replace it
with readings of sections of the Bill of Rights by willing high school students.
3. Initiate a Resolution for the immediate impeachments of Cheney, Bush, Rice and
Gonzalez. They have broken Federal and International laws, and are arguably guilty
of War Crimes.
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the Agenda by title
only.
Recommendation - Approval.
B. SPECIAL ORDERS OF BUSINESS
2. Consideration and possible action (Public Hearing) regarding the Fiscal Year 2007-
2008 Preliminary Budget and Five -Year Capital Improvements Plan including
discussion and possible direction regarding all City revenues and expenditures.
Recommendation - (1) Open Public Hearing; (2) Staff presentation of the 2007 -2008
Preliminary Budget and Council direction to staff regarding all City General Fund and
other revenues and expenditures (includes potential discussion and direction relating to
all City Department revenues and expenditures); (3) Continue the Public Hearing to
September 18, 2007; (4) Schedule the budget adoption for the September 18, 2007
meeting; (4) Alternatively, discuss and take other action related to this item.
4 U `t
C. UNFINISHED BUSINESS
D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS
3. Consideration and possible action regarding a recommendation by the Investment
Advisory Committee to adopt the City's Investment Policy. (Fiscal Impact: None)
Recommendation — (1) Adopt City's Investment Policy as submitted; (2) Alternatively,
discuss and take other action related to this item.
E. CONSENT AGENDA
All items listed are to be adopted by one motion without discussion and passed unanimously. If a call for discussion of
an item is made, the item(s) will be considered individually under the next heading of business.
4. Warrant Numbers 2561207 to 2561435 on Register No. 22 in the total amount of
$2,492,772.59 and Wire Transfers from 8/10/2007 through 8/23/2007 in the total
amount of $2,620,065.89.
Recommendation — Approve Warrant Demand Register and authorize staff to release.
Ratify: Payroll and Employee Benefit checks; checks released early due to contracts or
agreement; emergency disbursements and /or adjustments; and wire transfers.
5. Special City Council Meeting Minutes of August 8, 2007; Special City Council
Meeting Minutes of August 20, 2007; Regular City Council Meeting Minutes of
August 21, 2007.
Recommendation — Approval.
6. Consideration and possible action to approve the use of the vehicle graphics of the
El Segundo Police Department, including the City seal, on a new special edition
"Matchbox" die -cast replica toy police vehicle, and related play sets, to be
designed and produced by Mattel, Inc. (Fiscal Impact: None)
Recommendation — (1) Receive attached prototype depiction of replica police vehicle and
authorize the City Manager to sign the attached Mattel, Inc. Licensor Approval Form; (2)
Authorize the City Manager to execute a License Agreement with Mattel, Inc. in a form
approved by the City Attorney, to allow the use of the vehicle graphics, including the City
seal, of the El Segundo Police Department for production of die -cast replica toy police
vehicles and related play sets; (3) Alternatively, discuss and take other action related to
this item.
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7. Consideration and possible action to approve a contract with Meggitt Defense
Systems Caswell to repair, modernize and upgrade the Police Department firing
range with a computerized target system in an amount not to exceed $67,100 in
COPS grand funds.
Recommendation — (1) Authorize the City Manager to execute a contract approved by the
City Attorney with Meggitt Defense Systems Caswell not to exceed $67,100 for repairs,
modernization and upgrades of the police department firing range; (2) Alternatively,
discuss and take other action related to this item.
8. Consideration and possible action regarding the award a Standard Public Works
Contract to KDC, Inc., dba Dynalectric for construction of the Nash Street/Douglas
Street One -Way to Two -Way Street Conversion Project from Imperial Highway to El
Segundo Boulevard; authorization to employ the County of Los Angeles
Department of Public Works (LACDPW) for inspection and testing services for the
project; and, authorization to negotiate a change order for installation of a 30 -foot
tower for aircraft surveillance camera equipment near the intersection of Imperial
Avenue and Hillcrest Street. Approved Capital Improvement Project. Project No.
PW 07 -09. (Fiscal Impact: Construction contract amount = $1,209,900, LACDPW
inspection and testing = $175,000, Early turn tower installation = $10,000)
Recommendation — (1) Authorize the City Manager to execute a Standard Public Works
Contract in a form as approved by the City Attorney with KDC, Inc., dba Dynalectric
(Dynalectric) in the amount of $1,209,900.00 for construction of the Nash Street/Douglas
Street One -Way to Two -Way Street Conversion Project from Imperial Highway to El
Segundo Boulevard; (2) Authorize the use of County of Los Angeles Department of Public
Works inspection and materials testing services for the Project pursuant to the provisions
of the General Services Agreement with Los Angeles County in an amount not to exceed
$175,000; (3) Authorize the City Manager to execute a change order to the recommended
Contract with Dynalectric for installation of a 30 -foot tower for aircraft surveillance camera
equipment near the intersection of Imperial Avenue and Hillcrest Street in an amount not
to exceed $10,000; and, (4) Alternatively, discuss and take other action related to this
item.
9. Consideration and possible action regarding the purchase of a heating boiler from
R.F. MacDonald Company for the replacement of the heating system boiler at the
Library (111 W. Mariposa Avenue). (Fiscal Impact = $18,370.66)
Recommendation — (1) Authorize issuance of a purchase order to R.F. MacDonald
Company in the amount of $18,370.66; (2) Alternatively, discuss and take other action
related to this item.
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10. Consideration and possible action regarding first amendment of Professional
Services Agreement No. 3451 between Accounting, Tax and Advisory of Orange
County, LLC (CBIZ) and the City of El Segundo for $60,000 due to the vacancy of
the Director, Administrative Services position in the Administrative Services
Department (Fiscal Impact: $60,000 off -set with salary savings of $104,000)
Recommendation — (1) Authorize the City Manager to amend Professional Services
Agreement No. 3451 on behalf of the City for temporary professional accounting services
with CBIZ for an amount not to exceed $60,000, as approved to form by the City Attorney;
(2) Alternatively, discuss and take other action related to this item.
11. Consideration and possible action regarding extending the Professional Services
Agreement No. 3450 for financial auditing services with Lance, Soll & Lunghard for
one year through the end of Fiscal Year 2007 -2008. (Fiscal Impact: Fiscal Year
2007 -2008 $36,500)
Recommendation — (1) Authorize the City Manager to approve a one -year extension
amendment of Professional Services Agreement No. 3450 for auditing services with
Lance, Soll & Lunghard through 2007 -2008 for $36,500 as approved to form by the City
Attorney; (2) Alternatively, discuss and take other action related to this item.
12. Consideration and possible action regarding the presentation of fiscal year 2006-
2007 Third Quarter Financial Budget Review. (Fiscal Impact: None)
Recommendation — (1) Receive and file Fiscal Year 2006 -2007 Third Quarter Financial
presentation; (2) Alternatively, discuss and take other action related to this item.
13. Consideration and possible action regarding the approval of a list of consultants to
provide environmental review services pursuant to California Environmental
Quality Act guidelines (CEQA) and National Environmental Policy Act (NEPA)
regulations to assist the City in the processing of entitlement projects and the
authorization for the City Manager to sign Professional Service Agreements for
developer reimbursed environmental review services in amounts not to exceed
$75,000. (Fiscal Impact: None)
Recommendation — (1) Approve the attached list of consultants to provide environmental
review services; (2) Authorize the City Manager to sign Professional Service Agreements
for applicant reimbursed environmental review services approved as to form by the City
Attorney in an amount not to exceed $75,000; (3) Alternatively, discuss and take other
action related to this item.
CALL ITEMS FROM CONSENT AGENDA
7
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F. NEW BUSINESS
G. REPORTS — CITY MANAGER
H. REPORTS — CITY ATTORNEY
REPORTS — CITY CLERK
J. REPORTS — CITY TREASURER
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Fisher -
Council Member Jacobson —
Council Member Boulgarides —
Mayor Pro Tern Busch -
14. Consideration and possible action regarding the appointment of an ad hoc City
Council subcommittee to review and make recommendations on City
environmental policies and programs. (Fiscal Impact: None)
Recommendation — (1) Approve the appointment of an ad hoc City Council subcommittee
to be comprised of two Council Members to review City environmental policies and
programs and make recommendations to City Council on additional energy saving action
items; (2) Alternately, discuss and take other action related to this item.
Mayor McDowell —
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have receive value of $50 or more to communicate to the City Council on
behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to
addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all
comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The
Council will respond to comments after Public Communications is closed.
8 0 8
MEMORIALS —
CLOSED SESSION
The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government
Code Section §54960, et seq.) for the purposes of conferring with the City's Real Property Negotiator; and /or
conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under
Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators.
REPORT OF ACTION TAKEN IN CLOSED SESSION (if required)
ADJOURNMENT
POSTED:
DATE: 4a o7!Z v2-00 %
TIME: r
NAME:
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Citp of el *egunbo, California
WHEREAS, 'eptember 17, 2007 marks the two hundred twentieth anniversary of the drafting of
the Constitution of the United States of America by the Constitutional Convention.
WHEREAS, It is fitting and proper to accord official recognition to this magnificent document
whose powerful framework for establishing and preserving liberty, justice, and
opportunity has enabled us to prosper as a nation and thrive as a people through more
than two centuries of political change, social transformation, and economic challenge.
WHEREAS, The Constitution of the t'nited Mates of America, the guardian of our liberties,
embodies the principles of limited government in a Republic dedicated to rule by law.
WHEREAS, The Constitution of the United States of America is an enduring and true guide for
American government.
NOW, THEREFORE, the �\/Iayor and .Members of the City Council of the City of F1 Segundo,
California, proclaim the week of September 17 through 23 as CONSTITUTION WEEK and
encourage our citizens to study the Constitution; to conduct ceremonies and programs that
commemorate our Constitution's historic significance; to reflect on the privilege of being an American
with all the rights and responsibilities which that pri6lege involves; and to reaffirm our commitment as
citizens of this great Nation.
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EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Special Orders of Business
AGENDA DESCRIPTION:
Consideration and possible action (Public Hearing) regarding the Fiscal Year 2007 -2008
Preliminary Budget and Five -Year Capital Improvements Plan including discussion and
possible direction regarding all City revenues and expenditures.
RECOMMENDED COUNCIL ACTION:
1) Open Public Hearing;
2) Staff presentation of the 2007 -2008 Preliminary Budget and Council direction to staff
regarding all City General Fund revenues and expenditures (includes potential
discussion and direction relating to all City Department revenues and expenditures).;
3) Continue the Public Hearing to September 18, 2007
4) Schedule the budget adoption for the September 18, 2007 meeting;
5) Alternatively discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
The FY 2007 -2008 budget process began on May 21, 2007 when Departments were given
budget instructions and specific guidelines as directed by the City Manager.
On August 8, 2007, the City Council held a Strategic Planning Session with the City Manager
and all department heads. During this planning session, the City Council reviewed
departmental projects, established priorities and set the general direction for the next fiscal
year.
(Background and discussion continued on the next page.)
ATTACHED SUPPORTING DOCUMENTS:
None
FISCAL IMPACT: Discussion to Adopt FY 2007 -2008 Preliminary Operating
and Five -Year Capital Improvement Budget
Operating Budget:
Amount Requested:
Account Number:
Project Phase:
Appropriation Required: _ Yes X No
ORIGINATED BY: DATE:
Deborah Cullen, Inter) ector of Finance
REVIEWED BY:
Jeff Stewart. C
DATE:
8`a9 O 7 2
BACKGROUND & DISCUSSION:
The budget impacts of personnel changes /additions and new projects are included in the FY
2007 -2008 Preliminary Budget.
The Preliminary FY 2007 -2008 Operating and Five -Year Capital Improvement Budget were
distributed to the City Council on August 21, 2007.
The final steps in the process are a public hearing on September 4, 2007 and final budget
adoption on September 18, 2007. As part of the final adoption of the budget staff will prepare
a reconciliation of changes from the preliminary to the final adopted budget.
Summary of Significant Changes
1. $2.2 million increase in General Fund expenditures resulting primarily from salaries and
benefits increases;
a. Health benefit increases of 6.0% citywide are included in the budget. The
impact on the General Fund is approximately $206,000;
2. The preliminary budget includes funding 100% of the annual fiscal charge for the
Equipment Replacement Fund and funding 100% of estimated expenses in both the
Liability Insurance Fund and the Worker's Compensation Fund
3. Overall utility costs have increased approximately 10 %;
4. Overall fuel costs have increased 38.9 %. Fuel costs have been adjusted for two years in
FY 2007 -2008, as there was no adjustment done in FY 2006 -2007;
5. The fiscal impact of new proposed programs included in the budget is $276,425;
6. PERS miscellaneous employer costs increased from 9.96% of payroll to an estimated
10.2% July 1, 2007. The net fiscal impact reflected in the FY 2007 -2008 budget is an
increase of approximately $31,000. PERS safety employer costs decreased from 25.6%
of payroll to a projected 25.2% July 1, 2007. The net fiscal impact reflected in the FY
2007 -2008 budget is a decrease of approximately $43,000.
7. The fiscal impact of personnel changes included in the budget is an increase of $190,836.
This includes salaries and benefits for a GIS Specialist position;
8. The fiscal impact of proposed technology projects included in the budget is $240,200;
9. The General Fund contribution to Capital Improvement projects is $750,000
013
EL SEGUNDO CITY COUNCIL
AGENDA ITEM STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: September 4, 2007
AGENDA HEADING: Committees, Boards
And Commissions
Consideration and possible action regarding a recommendation by the Investment Advisory
Committee to adopt the City's Investment Policy (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1) Adopt City's Investment Policy as submitted; (2) Alternatively, discuss and take
other action related to this item.
BACKGROUND & DISCUSSION:
Section 53646(a) of the California Government Code requires that the investment policy of a
local agency be adopted annually by its legislative body. On June 25, 2007, the City's
Investment Advisory Committee met and reviewed the attached policy for coming year. The
Committee voted unanimously to recommend the attached policy to the City Council for review
and approval. It should be noted that the Committee is recommending no changes to the
current policy.
ATTACHED SUPPORTING DOCUMENTS:
Draft copy of the City of El Segundo Investment Policy with attachments.
FISCAL IMPACT:
None
ORIGINATED BY: DATE: 08/22107
Ralph E. Lanphere, City Treasurer
REVIEWED BY: DATE:
Es/ 2-9107
Jeff Stewart, Ci anager
3
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City of El Segundo
Investment Policy
1.0 Policy:
It is the policy of the City of El Segundo to invest public funds in a prudent manner with
the primary objectives of, in priority order, safety, liquidity and yield, and in conformance
with all state and local statutes governing the investment of public funds.
2.0 Scope:
This investment policy applies to all funds invested on behalf of the City of El Segundo.
These funds are accounted for in the City of El Segundo's Comprehensive Annual
Financial Report and include:
2.1 Funds:
2.1.1
General Fund
2.1.2
Special Revenue Funds
2.1.3
Capital Project Funds
2.1.4
Enterprise Funds
2.1.5
Trust and Agency Funds
2.1.6
Debt Service Fund
3.0 Prudence:
When investing. reinvesting, purchasing, acquiring, exchanging, selling, and managing
public funds. the City Council. Treasurer and other persons authorized to make
investment decisions on behalf of the City. shall act with the care. skill. prudence, and
diligence under the circumstances then prevailing, that a prudent person acting in a like
capacity and familiarity with those matters would use in the conduct of funds of a like
character and with like aims, to safeguard the principal and maintain the liquidity needs
of the City.
3.1 The standard of prudence to be used by investment officers shall be the "prudent
investor" standard and shall be applied in the context of managing an overall
portfolio of money and investments that belong to the public. Investment officers
acting in accordance with written procedures and the investment policy and
exercising due diligence shall be relieved of personal responsibility for an
individual security's credit risk or market price changes, provided deviations from
expectations are reported in a timely fashion and appropriate action is taken to
control adverse developments.
09/07
015
4.0 Objective:
The primary objectives, in priority order, of the City of El Segundo's investment activities
shall be:
4.1 Safety: Safety of principal is the foremost objective of the investment program.
Investments of the City of El Segundo shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio. To attain this
objective, the City shall only invest in high quality securities and it shall diversify
its investments in order that potential losses on individual securities do not exceed
the income generated from the remainder of the portfolio so as not to harm the
City's cash flow and principal. The City shall also structure its portfolio so as to
prevent the need to sell securities prior to maturity and it shall not take short
positions, that is, selling securities that the City does not own.
4.2 Liquidity: The City of El Segundo's investment portfolio will remain sufficiently
liquid to enable the City of El Segundo to meet all operating requirements which
might be reasonably anticipated.
4.3 Returns on investment: The City of El Segundo's investment portfolio shall be
designed with the objective of attaining a return throughout budgetary and
economic cycles, taking into account the City of El Segundo's investment risk
constraints and the cash flow characteristics of the portfolio.
5.0 Delegation of Authoriri :
Authority to manage the City of E1 Segundo's investment program is derived from the
following: State of California Government Code Section 53600 et seq. Management
responsibility for the investment program is therefore delegated to the City Treasurer.
who shall establish written procedures for the operation of the investment program
consistent with this investment policy. Procedures should include reference to:
safekeeping, wire transfer agreements. collateral /depository agreements and banking
service contracts. Such procedures shall include explicit delegation of authority to
persons responsible for investment transactions. No person may engage in an investment
transaction except as provided under the terms of this policy and the procedures
established by the City Treasurer. The City Treasurer shall be responsible for all
transactions undertaken and shall establish a system of controls to regulate the activities
of subordinate officials.
6.0 Authorized Financial Dealers and Institutions:
The City Treasurer shall transact business only with banks, savings and loans, state and
federal credit unions, and securities dealers. The Treasurer shall select and maintain a
current list of broker /dealers, as defined by Corporations Code Section 25004, authorized
to provide the City investment services. This list of broker /dealers shall be included in
the Treasurer3s monthly investment report to the City Council. The broker /dealers shall
meet the requirements of Government Code Section 53635.5 and Securities & Exchange
2 09/07
016
Commission Rule 240.150-1 (uniform net capital rule). The Treasurer shall keep on file
with the City an audited financial statement for each authorized broker /dealer's last
complete fiscal year. Each authorized broker /dealer shall execute an acknowledgement
that it has read the City =s current Investment Policy and that it will abide by the terms
and conditions of the Policy. Additionally. each such broker /dealer shall complete the
questionnaire attached hereto. City funds shall only be placed in and invested with
depositories that meet the requirements of Government Code Sections 53630 et seq.
7.0 Authorized & Suitable Investments:
The City of El Segundo is empowered by California Government Code Section 53600
et seq. to invest in the following types of securities pursuant to the limits imposed by said
statute. (A copy of Government Code Sections 53601 and 53601.6 are attached and by
reference herein incorporated). Of such permitted investments, City funds may be
invested, subject to the maturity and percentage restrictions contained in Government
Code Section 53601 and 53601.6, as amended from time to time, as set forth below:
7.1 Permitted Investments/Deposits.
7.1.1.
Securities of the U.S. Government
7.1.2.
Certificates of Deposits
7.1.3.
Negotiable Certificates of Deposit
7.1.4.
Bankers Acceptances
7.1.5.
Commercial Paper
7.1.6.
Local AgencN1 Investment Fund (LAIF)
7.1.7.
Time deposits
7.1.8.
Mutual Funds
7.1.9.
Medium Term Notes
7.1.10.
Countv Pooled Funds
8.0 Collateralization:
Collateralization will be required on certificates of deposit pursuant to Government Code
Sections 53652 through 53667.
Collateral will always be held by an independent third party with whom the City has a
current custodial agreement. A clearly marked evidence of ownership (safekeeping
receipt) must be supplied to the City and retained.
9.0 Safekeeping and Custody:
All security transactions entered into by the City of El Segundo shall be conducted on a
delivery- versus - payment (DVP) basis pursuant to Government Code Section 53601.
Except for certificates of deposit, securities shall be held by a third party custodian
designated by the Treasurer and evidenced by safekeeping receipts pursuant to
Government Code Section 53608.
09/07
0 iI
10.0 Diversification:
The City of El Segundo will diversify its investment by security type and institution.
With the exception of U.S. Treasury securities and authorized pools. no investment shall
be made in contravention of Government Code Sections 53601 and 53601.6 or which will
cause more than 50% of the entity's total investment portfolio to be invested in a single
security type or with a single financial institution.
11.0 Maximum Maturities:
To the extent possible, the City of El Segundo will attempt to match its investments with
anticipated cash flow requirements. The City will not directly invest in securities
maturing more than five (5) years from the date of purchase pursuant to Government
Code Section 53601.
12.0 Internal and External Control:
The Treasurer shall establish internal control procedures such that daily investment
activity is being reviewed by the Director of Finance. These procedures shall provide
adequate internal controls to insure compliance with this Investment Policy and state law.
The procedures shall be reviewed annually by an independent external auditor.
If the City deposits funds in County Treasuries for investment by County Treasurers, the
City Treasurer shall review the statements and reports generated pursuant to Government
Code Sections 16481.2, 27133, 27134 and 53684 for each County in which the City has
deposited funds. Based upon the review process, the Treasurer shall on a quarterly basis
provide a written report to the City Council summarizing any failure by the County
Treasuries to comply with state law or their own investment policies and any significant
investment activity by the County Treasuries.
If any particular investment is downgraded, the Treasurer and Director of Finance will
review and determine if a change in that particular investment must be made.
The City Council shall establish a periodic independent external audit of the City's
compliance with this Investment Policy.
13.0 Reporting:
The Treasurer shall file a monthly report, which states its relationship to the Statement of
Investment Policy. This report mush be filed with the City Manager and the City Council
and comply with Government Code Sections 53607, 53646 and 53684. The General
elements of the monthly reports include, but are not limited to, the following;
a. Type of investments.
b. Issues.
C. Date of maturity.
4
09/07
016
d. Par and dollar amount invested
e. Current market value of securities with maturity in excess of twelve months
f. Rate of interest.
g. Statement relating the report to the Statement of Investment Policy
Statement that there are sufficient funds to meet the next 6 month's obligations
County pool investment report
List of current authorized broker /dealers
List of all investments not held b}, a third party custodian and the reason they are not
placed with a third party custodian.
The Treasurer shall provide the California Debt and Investment Advisory Commission
(CDIAC) with second and forth quarter investment portfolio reports in order to comply
with Assembly Bill 943 (AB943.) These reports must state the financial assets of the
City and contain the information detailed in Government Code section 53646(b). The
reports must be filed with the CIDAC within 60 days after the close of the second and
forth quarters of each calendar year.
14.0 Investment Advisory Committee:
The City has established an Investment Advisory Committee (IAC) comprised of the City
Treasurer, the Administrative Services Director, an El Segundo Resident (Council
appointed) and a member of the investment community (Council appointed). The IAC
shall be provided with copies of the monthly reports identified in Section 13. The IAC
shall meet the third Tuesday at the end of each quarter to discuss the City's investments
and shall communicate in writing any concerns or comments it has with respect to the
City =s investments or this Investment Policy to the City Council.
15.0 Ethics and Conflicts of Interest:
All participants in the City's investment process shall seek to act responsibly as
custodians of the public trust. The City Treasurer. or when appropriate the Deputy City
Treasurer, shall avoid any transaction that might impair public confidence in the City's
ability to govern and manage the investment of public funds in an effective manner. The
City Treasurer, Deputy City Treasurer, or other official charged with the responsibility of
making investment decisions shall have no vested interest in any investment being made
involving public funds of the City, and shall gain no financial benefit from such
investment decisions.
09/07
�l�
Glossary
Agency. A debt security issued by a federal or federally sponsored agency. Federal agencies are
backed by the full faith and credit of the U.S. Government. Federally sponsored agencies (FSAs)
are backed by each particular agency with a market perception that there is an implicit
government guarantee. An example of federal agency is the Government National Mortgage
Association (GNMA). An example of an FSA is the Federal National Mortgage Association
(FNMA).
Basis point. A basis point equals one one - hundredth of 1% (.01%),
Book value. The value at which a security is carried on the inventory lists or other financial
records of an investor. This value may be the original cost of acquisition of the security, or
original cost adjusted by the amortization of a premium or accretion of a discount. The book
value may differ significantly from the security's current value in the market.
Broker. A broker brings buyers and sellers together for a commission paid by the initiator of the
transaction or by both sides; he does not position or take ownership of the security.
Certificate of Deposit (CD). A deposit of funds, in a bank or savings and loan association, for a
specified term that earns interest at a specified rate or rate formula.
Collateralization. Process by which a borrower pledges securities, property or other deposits for
the purpose of securing the repayment of a loan and /or security.
Coupon rate. Interest rate, expressed as a percentage of par or face value, that issuer promises
to pay over lifetime of debt security.
Current yield (Current Return). A measure of the simple interest annual yield for interest -
bearing investments with maturities of one year or more. To calculate the current yield. the
annual coupon interest income is divided by the amount paid to acquire the investment. It is
important to note that the current yield is only accurate for investments purchased at par. The
current yield calculation includes just one income cash flow — the annual interest income. It
ignores the profit or loss resulting from discounts and premiums.
Custody. The service of an organization, usually a financial institution, of holding (and
reporting) a customer's securities for safekeeping. The financial institution is known as the
custodian.
Delivery versus payment (DVP). A settlement procedure where payment for a securities
purchase is made simultaneously with the transfer of the purchased securities. The same
procedure applies for a securities sale; the securities are transferred as payment is made.
Discount. The difference between the cost price of a security and its value at maturity when
quoted at lower than face value. A security selling below original offering price shortly after sale
6 09/07
UDC
also is considered to be at a discount.
Discount securities. Securities that do not pay periodic interest. Investors earn the difference
between the discount issue price and the full face value paid at maturity. Treasury bills, bankers'
acceptances and most commercial paper are issued at a discount.
Diversification. Dividing investment funds among a variety of securities, offering independent
returns, to reduce risk inherent in particular securities.
Federal Agency Securities. A variety of securities issued by several Federally sponsored
agencies. Some are issued on a discount basis and some are issued with coupons. Several have
the full faith and credit guarantee of the U.S. government, although others do not.
Federal Deposit Insurance Corporation (FDIC). A federal agency that insures bank, deposits,
currently up to $100,000 per deposit.
Federal funds (Fed Funds). Funds placed in Federal Reserve banks by depository institutions in
excess of current reserve requirements. These depository institutions may lend fed funds to each
other overnight or on a longer basis. They may also transfer among each other on a same -day
basis through the Federal Reserve banking system. Fed funds are considered to be immediately
available funds.
Fed Funds Rate. Interest rate charged by one institution lending federal funds to another.
Federal Home Loan Bank (FHLB). The institutions that regulate and lend to savings and loan
associations. The Federal Home Loan Banks play a role analogous to that played by the Federal
Reserve Banks vis -a -vis member commercial banks.
Federal Home Loan Mortgage Corporation ( FHLMC). A U.S. Corporation and
instrumentality of the U.S. government. Through its purchases of conventional mortgages, it
provides liquidity to the mortgage markets, much like FNMA. FHLMC's securities are highly
liquid and widely accepted. FHLMC assumes and guarantees that all security holders will
receive timely payment of principal and interest.
Federal National Mortgage Association (FNMA). FNMA, like GNMA was chartered under
the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working
under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest
single provider of residential mortgage funds in the United States. Fannie Mae, as the
corporation is called. is a private stockholder -owned corporation. The corporation's purchases
include a variety of adjustable mortgages and second loans in addition to fixed -rate mortgages.
FNMA assumes and guarantees that all security holders will receive timely payment of principal
and interest.
Federal Reserve System. The central bank of the United States created by Congress and
consisting of a seven - member Board of Governors in Washington, D.C., 12 Regional Banks and
about 5,700 commercial banks that are members of the system.
7 09/07
021
Government National Mortgage Association (GNMA or Ginnie Mae). Securities guaranteed
by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations
and other institutions. Security holder is protected by full faith and credit of the U.S.
Government. Ginnie Mae securities are backed by FHA. VA or FMHM mortgages. The term
pass - through is often used to describe Ginnie Maes.
Liquidity. The quality of an asset that permits it to be converted quickly into cash without a
significant loss of value.
Local Agency Investment Fund (LAIF). A special fund in the State Treasury which local
agencies may use to deposit funds for investment and for reinvestment. It offers high liquidity
can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those
agencies participating on a proportionate share determined by the amounts deposited and the
length of time they are deposited.
Market Value. The price at which a security is currently being sold in the market.
Maturity Date. The specified day on which the issuer of a debt security is obligated to repay the
principal amount, or face value, a security.
Par Value. The stated or face value of a security expressed as a specific dollar amount marked
on the face of the security; the amount of money due at maturity. Par value should not be
confused with market value.
Primary Dealer. A group of government securities dealers that submit daily, reports of market
activity and positions and monthly financial statements to the Federal Reserve Bank of New
York and are subject to its informal oversight. Primary dealers include Securities and Exchange
Commission (SEC). registered securities broker - dealers, banks, and a few unregulated firms.
Prudent Person Rule. A standard of conduct where a person acts with care, skill. prudence, and
diligence v.,hen investing, reinvesting, purchasing, acquiring, exchanging. selling and managing
funds. The test of whether the standard is being met is if a prudent person acting in a similar
situation would engage in similar conduct to ensure that investments safeguard principal and
maintain liquidity.
Rate of Return. The amount of income received from an investment, expressed as a percentage.
A market rate of return is the yield that an investor can expect to receive in the current interest -
rate environment utilizing a buy - and -hold to maturity investment strategy.
Safekeeping. A procedure where a third party acting as custodian for a fee holds securities.
Secondary Market. Markets for the purchase and sale of any previously issued financial
instrument. The first sale of a financial instrument by the original issuer is said to be done a
primary market. All subsequent trades are said to be secondary market.
09/07
024
Settlement Date. The date on which a trade is cleared by delivery of securities against funds.
The date may be the same date as the trade date or later.
Total return. Interest income paid on the invested principal, plus interest income earned from
the successive reinvestment of that income, plus projected capital gains (or minus losses) on the
investment. Differs from yield to maturity because (1) it can include gains or losses from sales
prior to maturity, and (2) it permits the assumption of a reinvestment rate different from the yield
earned on the underlying principal.
Trade Date. The date on which a transaction is initiated or entered into by the buyer and seller.
Treasury Bills. Short-term U.S. government non - interest bearing debt securities with maturities
of no longer than one year and issued in minimum denominations of $10,000. Auctions of three -
and six -month bills are weekly, while auction of one -year bills are monthly. The yields on these
bills are monitored closely in the money markets for signs of interest rate trends.
Treasury Notes. Intermediate U.S. government debt securities with maturities of one to 7 years.
Treasury Bonds. Long -term U.S. government debt securities with maturities of 10 years or
longer. Currently, the longest outstanding maturity is 30 years.
Yield. Loosely refers to the annual return on an investment expressed as a percentage on an
annual basis. 1~or interest - bearing securities, the yield is a function of the rate, the purchase price,
the income that can be earned from the reinvestment of income received prior to maturity, call or
sale and the time from purchase to maturity, call or sale. Different formulas or methods are used
to calculate yield. See Yield to Maturity and Total Return Analysis.
Yield -to- maturity. The rate of return yielded by a debt security held to maturity, when both the
interest payments and investor's potential capital gain or loss are included in the calculation of
the return.
0
09/07
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CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
8110/2007 THROUGH 8/23/2007
Date
8/10/2007
8/10/2007
8/13/2007
8/14/2007
8/14/2007
8/14/2007
8/15/2007
8/15/2007
8/15/2007
8/20/2007
8/22/2007
8/23/2007
8/23/2007
8/23/2007
8/11- 8/23/07
Payee Amount
State of CA
West Basin
Nationwide Retirement
Federal Reserve
Federal Reserve
2221 PPA, LLC
Cal Pers
Health Comp
Lane Donovan Golf
La Salle
Health Comp
Employment Development
IRS
Umpqua Bank
Workers Comp Activity
DATE OF RATIFICATION: 9/4/07
TOTAL PAYMENTS BY WIRE:
Certified as to the accuracy of the wire transfers by:
Description
1,301.54
Child support withholdings
833,224.91
H2O payment
27,357.47
457 contributions
50.00
Employee EE Bonds
150.00
Employee I Bonds
850.000.00
Park Place Settlement
255,589.38
Retirement
2,342.76
Weekly claims 8/10
22,657.12
Lakes Payroll
43,725.00
ABAG Payment
3,260.49
Weekly claims 8/17
49,948.10
State Taxes
232,524.36
Federal Taxes
262,303.34
Ohno Costruction Retention
35,631.42
SCRMA checks issued
2.620,065.89
]�j -'}-� i�
e a 3 k-7
Deputy Trea rer
Date
,-O (11 h
tJ 2
Acting rector of Finance
Date
5h_7 0_1
City Manager
Date
2,620,065.89
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
025
SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
WEDNESDAY, AUGUST 8, 2007
EMERGENCY OPERATIONS CENTER (EOC) in Police Building
348 Main Street, El Segundo, CA 90245
8:00 a.m. - Noon
8:00 A.M. SESSION
CALL TO ORDER — Mayor McDowell at 8:10 a.m.
ROLL CALL
Mayor McDowell - Present
Mayor Pro Tern Busch - Present
Council Member Boulgarides - Present
Council Member Fisher - Present
Council Member Jacobson - Present
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City
Council on behalf of another, and employees speaking on behalf of their employer, must so identify
themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow
Council to take action on any item not on the agenda. The Council will respond to comments after
Public Communications is closed.
SPECIAL ORDERS OF BUSINESS:
Consideration and possible action regarding a staff presentation of the assumptions made
in preparing the FY 2007/2008 City Budget, including an estimate of the revenues and
expenditures, the assumptions made in presenting a balanced budget.
Jeff Stewart, City Manager, gave a brief introduction.
Deborah Cullen, Interim Finance Director, gave a report.
2. Consideration and possible action regarding detailed summaries of all department budgets
included in the FY 2007 -2008 Preliminary Budget including detailed descriptions of the
recommendations stated in the budget overview.
3. Consideration and possible action regarding staff recommendations for proposed new
programs included in the FY 2007 -2008 Preliminary Budget as specified in "Attachment A ".
4. Consideration and possible action regarding staff recommendations for all personnel
reclassification changes included in the FY 2007 -2008 Preliminary Budget as detailed in
"Attachment B ".
5
026
5. Consideration and possible action of a proposed reorganization of the Administrative
Services Department, including the creation of a Director of Finance position and a Director
of Human Resources position (See "Attachment C ").
Recess: 9:20 a.m.
Reconvene: 9:25 a.m.
All Members Present
6. Consideration and possible action to provide $750,000 in the FY 2007 -2008 Preliminary
Budget to fund programs recommended by the Capital Improvement Program Advisory
Committee ( CIPAC) (See "Attachment D ").
7. Consideration and possible action to provide $240,200 in the FY 2007 -2008 Preliminary
Budget to fund technology projects recommended by the Executive Technology Review
Committee (See "Attachment E ").
8. Consideration and possible action regarding recommendations from the Investment
Advisory Committee to place into a CalPERS irrevocable trust $1.5 million previously
authorized by the City Council during FY 2006 -2007 and to authorize and place into an
irrevocable trust an additional $1.5 million in the 2007 -2008 Preliminary Budget for the
purpose of funding long -term retiree medical costs in accordance with Governmental
Accounting Standards Board (GASB 45) requirements (See "Attachment F ").
Council requested a special meeting be set up to have the Actuary present the projections and
scenarios. Council possibly to authorize the implementation of a trust fund after the special
meeting.
9. Consideration and possible action of proposed designation of funds received for the Athletic
Field naming rights as follows:
a. Appropriate $350,000 to reimburse the Traffic Mitigation fund for the Douglas Street
improvements;
b. Authorize $100,000 for long -term maintenance of the synthetic turf on the Athletic
Fields located at 2201 E. Mariposa Avenue;
C. Appropriate $200,000 for the Recreation Park Retaining Wall Project on the softball
field located on the east side of Eucalyptus Street, between Grand Avenue and Holly
Avenue. (See "Attachment G ")
Division of the first payment of $750,000 funds received for the naming rights:
a. Appropriate $350,000 to reimburse the Traffic Mitigation fund.
b. Appropriate $200,000 for the Recreation Park Retaining Wall Project, (Softball Field
enhancement Project) combined with the CIPAC appropriation of $220,000 to complete the
project. Excess funds from the project to be placed in the Economic Uncertainty Fund.
C. Authorize $100,000 to a long -term maintenance fund for replacement of the synthetic turf.
Discuss the possibility of placing the second payment of $750,000 to be received in
January, in the maintenance fund.
d. Requested Finance to estimate the amount needed to fully fund replacement of the field in
10 years, and an amount to earmark each year for replacement in 20 years.
10. Consideration and possible action regarding the Fiscal Year 2006 -2007 status of the
Equipment Replacement Fund; review funding levels, accumulated totals and lifecycle
adjustments from prior years and proposed funding included in the Fiscal Year
2007 -2008 Preliminary Budget. (See "Attachment H ")
11. Consideration and possible action to authorize continued financial assistance to the El
Segundo Unified School District in the amount of $250,000 annually. (See Attachment I ")
Staff to work with the School District to develop a 5 year agreement with a clause for cancellation.
Report on how the money is used, and amount to remain the same at $250,000.
Council Member Boulgarides requested a rough estimate be obtained for costs of an overhead
sign at Grand Avenue and Vista del Mar.
ADJOURNMENT at 11:00 a.m.
Cindy Mortesen, City Clerk
V Z
Proposed New Programs
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)�. Personnel Reclassifications:
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)�. Personnel Reclassifications:
. Management Analyst
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45
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City Manager:
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A 064
SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
MONDAY, AUGUST 20, 2007 — 3:00 P.M.
CALL TO ORDER — Mayor McDowell at 3:00 p.m.
ROLL CALL
Mayor McDowell
Mayor Pro Tern Busch
Council Member Boulgarides
Council Member Fisher
Council Member Jacobson
Present
Present
Present - Absent
Present - Absent
Present
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City
Council on behalf of another, and employees speaking on behalf of their employer, must so identify
themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow
Council to take action on any item not on the agenda. The Council will respond to comments after
Public Communications is closed. - NONE
SPECIAL ORDERS OF BUSINESS -
Consideration and possible action regarding presentation by John Bartel, Bartel and
Associates regarding Statement 45 of the Governmental Accounting Standards Board
(GASB 45) and the financial impact to the City relating to City employee retirement health
benefit costs.
Jeff Stewart, City Manager, gave a brief introduction.
John Bartel, Bartel and Associates, gave a presentation and responded to Council questions.
Council consensus to have staff develop a ten -year Phased -In Funding Plan and a ten -year Full
Pre - Funding Plan, showing dollar amount increases over a "pay as you go" Plan. Staff to create
graph format for each of the proposed scenarios and present to Council concurrent with the budget
adoption.
ADJOURNMENT at 4:15 p.m.
Cathy Domann, Deputy City Clerk
i6J
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, AUGUST 21, 2007 - 5:00 P.M.
5:00 P.M. SESSION
CALL TO ORDER
ROLL CALL
Mayor McDowell -
Absent
Mayor Pro Tern Busch -
Absent
Council Member Boulgarides -
Absent
Council Member Fisher -
Absent
Council Member Jacobson -
Absent
Clerk Domann declared the meeting adjourned to 6:00 p.m. August 21, 2007 due to a lack of
quorum.
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, AUGUST 21, 2007 - 600 P.M.
CALL TO ORDER — Mayor McDowell at 6:00 p.m.
ROLL CALL
Mayor McDowell -
Present
Mayor Pro Tern Busch -
Present — arrived at 6:02 p.m.
Council Member Boulgarides -
Present
Council Member Fisher -
Present
Council Member Jacobson -
Present
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City
Council on behalf of another, and employees speaking on behalf of their employer, must so identify
themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250. - NONE
CLOSED SESSION:
The City Council moved into a closed session pursuant to applicable law, including the Brown Act
(Government Code Section §54960, et seq.) for the purposes of conferring with the City's Real
Property Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation;
and /or discussing matters covered under Government Code Section §54957 (Personnel); and /or
conferring with the City's Labor Negotiators; as follows:
MINUTES OF THE REGULAR CITY COUNCIL MEETING
AUGUST 21, 2�0`0[7�
CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(a)) — 2
matters
1. City of El Segundo vs. City of Los Angeles, et. al. LASC No. BS094279
2. Solomon vs. City of El Segundo, LASC No. BC372401
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code §54956.9(b): -0- potential case (no
further public statement is required at this time), Initiation of litigation pursuant to Government
Code §54956.9(c): -0- matter.
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957): -0- matters
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957-6):-2- matters
1. Labor Negotiator: Jeff Stewart, City Manager
Represented Employees: City Employees Association (CEA)
2. Labor Negotiator: Jeff Stewart, City Manager
Represented Employees: Police Support Services Employees Association (PSSEA)
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0- matter
SPECIAL MATTERS: -0- matter
Council recessed at 6:50 p.m.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
AUGUST 21, 2007
-2-
+3 7
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, AUGUST 21, 2007 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER — Mayor McDowell at 7:00 p.m.
INVOCATION — Pastor Roger Kinsey, Pacific Baptist Church
PLEDGE OF ALLEGIANCE — Mayor Pro Tem Eric Busch
PRESENTATIONS —
(a) Rob Katherman, Vice- President, Board of Directors of the Water Replenishment District,
presented a proclamation to the City of El Segundo.
(b) Presentation by Jenny Davies, Reach Out Against Drugs (ROAD), to the City Council.
ROLL CALL
Mayor McDowell - Present
Mayor Pro Tem Busch - Present
Council Member Boulgarides - Present
Council Member Fisher - Present
Council Member Jacobson - Present
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City
Council on behalf of another, and employees speaking on behalf of their employer, must so identify
themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow
Council to take action on any item not on the agenda. The Council will respond to comments after
Public Communications is closed. - NONE
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the Agenda by title only.
MOTION by Jacobson, SECONDED by Mayor Pro Tem Bush to read all ordinances and
resolutions on the Agenda by title only. MOTION PASSED BY UNANIMOUS VOTE. 5/0
B. SPECIAL ORDERS OF BUSINESS
Consideration and possible action regarding adopting the proposed use fees and resolution
for the new Campus El Segundo Athletic Fields at 2201 E. Mariposa Avenue. (Fiscal
Impact: Unknown)
MINUTES OF THE REGULAR CITY COUNCIL MEETING
AUGUST 21, 2007
-3-
�s
Mayor McDowell stated this is the time and place hereto fixed for a public hearing regarding
adopting the proposed use fees and resolution for the new Campus El Segundo Athletic Fields at
2201 E. Mariposa Avenue. Clerk Domann stated that proper notice was completed and no written
communication had been received by City Clerk's Office.
Richard Brunette, Recreation and Parks Director, gave a report. He clarified that the field Security
Deposit, listed on Exhibit A of the Resolution, was $200 per field not $200 per hour per field.
MOTION by Council Member Jacobson, SECONDED by Council Member Boulgarides to close the
public hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0
Mark Hensley, City Attorney, read by title only:
RESOLUTION NO. 4519
A RESOLUTION ADOPTING FEES FOR NEW CAMPUS EL SEGUNDO
ATHLETIC FIELD COMPLEX FOR THE EL SEGUNDO PARKS AND
RECREATION DEPARTMENT TO RECOVER COSTS INCURRED
FROM PROVIDING VARIOUS PUBLIC SERVICES.
MOTION by Mayor Pro Tern Busch, Seconded by Council Member Boulgarides to adopt
Resolution No. 4519 adopting fees for new Campus El Segundo Athletic Field Complex for the El
Segundo Parks and Recreation Department to recover costs incurred from providing various public
services. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0
C. UNFINISHED BUSINESS
2. Status report and presentation by the Police Department's Wellness Coordinator regarding
the Wellness Program and the proposal to expand the program to allow participation by
employees of the Fire Department. (Fiscal Impact: None)
Dave Cummings, Police Chief, gave an introduction
Alyssa DePompa, CSCS, Wellness Coordinator, gave a presentation.
Council received and filed report.
D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS
3. Consideration and possible action regarding approval of an amendment extending the
management agreement between the El Segundo Senior Housing Corporation and the
Cadman Group for the management of Park Vista, 615 East Holly Street. (Fiscal Impact:
None)
Richard Brunette, Recreation and Parks Director, gave a report.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
AUGUST 21, 2007
-4-
MOTION by Council Member Boulgarides, SECONDED by Council Member Jacobson to approve
Amendment No. 3364A extending for three years the agreement between the El Segundo Senior
Housing Corporation and the Cadman Group for operation of Park Vista, 615 East Holly Street.
MOTION PASSED BY UNANIMOUS VOICE VOTE. 510
4. Consideration and possible action regarding approval of an amendment to the
management agreement between the City of El Segundo and Lane Donovan Golf Partners,
LLC for operation, maintenance, and catering operations at the El Segundo Golf Course
(The Lakes), 400 S. Sepulveda Boulevard to require 120 day written notice if either party
wishes to terminate the contract. (Fiscal Impact: None)
Richard Brunette, Recreation and Parks Director, gave a report.
Mayor McDowell expressed concerns with requiring a 120 day written notice by the City to Lane
Donovan Golf Partners, LLC if the City wished to terminate the management agreement.
MOTION by Council Member Fisher, SECONDED Council Member Jacobson to approve
Amendment No. 3399 B to the contract with Lane Donovan Golf Partners, LLC requiring 120 day
written notice if either party wishes to terminate the management agreement for the El Segundo
Golf Course (The Lakes), 400 S. Sepulveda Boulevard. MOTION PASSED BY THE FOLLOWING
VOICE VOTE: AYES: MAYOR PRO TEM BUSCH, COUNCIL MEMBERS BOULGARIDES,
FISHER AND JACOBSON; NOES: MAYOR MCDOWELL. 4/1
E. CONSENT AGENDA
All items listed are to be adopted by one motion without discussion and passed unanimously. If a
call for discussion of an item is made, the item(s) will be considered individually under the next
heading of business.
5. Approved Warrant Numbers 2560991 to 2561206 on Register No. 21 in the total amount of
$3,072,864.28 and Wire Transfers from 7/27/07 through 8/09/07 in the total amount of
$1,338,845.96. Authorized staff to release. Ratified: Payroll and Employee Benefit checks;
checks released early due to contracts or agreement; emergency disbursements and /or
adjustments; and wire transfers.
6. Approved regular City Council Meeting Minutes of August 7, 2007.
7. Waived the formal bidding process per the El Segundo Municipal Code Section 1 -7 -10 and
authorized the Fire Department to piggyback on a Los Angeles County Fire Department
contract #41877 for the purchase of equipment to ensure 12 -Lead electrocardiograph (EKG)
capability in prehospital care for 9 -1 -1 patients in the City of El Segundo. (Fiscal Impact:
$16,949.07 to be reimbursed from Measure B Trauma Property Assessment funds)
Authorized the City Manager and /or designee to sign the Cardiac Care Program Equipment
Agreement No. 3672 Amendment No. 1.
8. Approved Agreement No. 3741 between the City of El Segundo and other South Bay cities
for the joint use of an armored response and rescue vehicle. (Fiscal Impact: $500.00)
Authorized the Mayor to execute the Agreement, approved as to form by the City Attorney.
-5-
MINUTES OF THE REGULAR CITY COUNCIL MEETING
AUGUST 21, 2007
0 �f0
9. Awarded Contract No. 3742 to Tetra Tech, Inc. for the seismic evaluation of the 3.1 Million
Gallon Circular Tank at 400 Lomita Street. Capital Improvement Program RFP No. 07 -04.
Water Project No. 7103 -8227. (Fiscal Impact: $39,408 Water Enterprise funds)
Authorized the City Manager to execute the Professional Services Agreement in a form as
approved by the City Attorney.
10. PULLED FOR DISCUSSION BY MAYOR PRO TEM BUSCH.
11. Awarded Standard Public Works Contract No.3743 to All American Asphalt in the amount of
$199,815.00 to slurry seal Sycamore Avenue from Penn Street to Sheldon Street and
streets in the area bounded by Sheldon Street, Mariposa Avenue, El Segundo Boulevard
and the west city limits. Approved Capital Improvement Program — Project No. PW 07 -11
(Contract Amount = $199,815) Authorized the City Manager to execute the contract in a
form approved by the City Attorney.
12. Accepted the work as complete for construction related to the City's Residential Sound
Insulation Program Group 11 (32 Dwellings). Project No. RSI 06 -11. (Fiscal contract total:
$1,141,319.75) Authorized the City Clerk to file the City Planning and Building Safety
Director's Notices of Completion in the County Recorder's Office.
MOTION by Council Member Boulgarides, SECONDED Council Member Jacobson by to approve
Consent Agenda Item Numbers 5, 6, 7, 8, 9, 11 and 12. MOTION PASSED BY UNANIMOUS
VOICE VOTE. 5/0.
CALL ITEMS FROM CONSENT AGENDA
Mayor Pro Tem Busch requested that on future project such as this, staff supply environmental
carbon footprint analysis.
Assistant City Engineer Dan Garcia responded to Council questions.
10. Consideration and possible action regarding adoption of plans and specifications and
authorization to solicit construction bids for replacement of field lighting and centerfield
scoreboard at the Recreation Park Baseball Field (Stevenson Field) on the west side of
Eucalyptus Street between Grand Avenue and Pine Avenue — Project No. PW 07 -07.
(Estimated Cost - $123,000.00)
MOTION by Mayor Pro Tern Busch, SECONDED by Council Member Boulgarides, to adopt plans
and specifications and authorize solicitation of construction bids for replacement of field lighting
and centerfield scoreboard at the Recreation Park Baseball Field (Stevenson Field) on the west
side of Eucalyptus Street between Grand Avenue and Pine Avenue — Project No. PW 07 -07.
Authorize staff to advertise the project for receipt of construction bids. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
F. NEW BUSINESS
MINUTES OF THE REGULAR CITY COUNCIL MEETING
AUGUST 21. 2007
-6-
0'71
13. Consideration and possible action regarding approval of up to a $6,000,000 grant from the
Federal Aviation Administration (FAA) to be used for the Residential Sound Insulation (RSI)
Program.
Jeff Stewart, City Manager, gave an introduction.
James O'Neill, Residential Program Manager, gave a report.
MOTION by Council Member Jacobson, SECONDED by Mayor Pro Tern Busch to accept the FAA
Grant Agreement No. 3477 for Project No. AIP 3- 06- 0139 -43 and potentially one additional FAA
Grant. Authorize the Mayor to execute the FAA Grant Agreement(s). MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
G. REPORTS — CITY MANAGER
H. REPORTS — CITY ATTORNEY
REPORTS — CITY CLERK
J. REPORTS — CITY TREASURER
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Fisher — Reported on Park Vista's 20 -Year Anniversary. Requested staff report
back on repairs and maintenance being done there.
Council Member Jacobson — Spoke on the upcoming Car Show on Main Street.
Council Member Boulgarides — Requested staff report back on process for reporting environmental
ethos on new projects and programs. Spoke regarding the Athletic Field Grand Opening.
Requested staff report back regarding keeping the fields open for public use.
Mayor Pro Tern Busch — Spoke regarding the new Athletic Fields. Requested agendize an item
next meeting regarding setting up a sub - committee for Environmental issues.
Mayor McDowell — Announced the Recreation and Parks Department Youth Drama My Favorite
Year performing at the El Segundo High School and upcoming Car Show. Also reported on
increased LAX noise and measures being taken to reduce airport noise.
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have receive value of $50 or more to communicate to the City
Council on behalf of another, and employees speaking on behalf of their employer, must so identify
themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow
Council to take action on any item not on the agenda. The Council will respond to comments after
Public Communications is closed. - NONE
MEMORIALS — NONE
-7-
MINUTES OF THE REGULAR CITY COUNCIL MEETING
AUGUST 21, 2007
CELEBRATIONS — Alana Joy Muche, born August 17, 2007 to parents Bryan and Melissa and
proud grandmother Linda who works in the City Clerk's Office. Finn Thomas Babbitt, born August
12, 2007 to parents Tom and Erika Babbitt.
ADJOURNMENT — at 8:03 p.m.
Cathy Domann, Deputy City Clerk
-8-
MINUTES OF THE REGULAR CITY COUNCIL MEETING
AUGUST 21. 2007
073
EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to approve the use of the vehicle graphics of the El
Segundo Police Department, including the City seal, on a new special edition "Matchbox" die -
cast replica toy police vehicle, and related play sets, to be designed and produced by Mattel,
Inc. (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1) Receive attached prototype depiction of replica police vehicle, and authorize the City
Manager to sign the attached Mattel, Inc. Licensor Approval Form.
2) Authorize the City Manager to execute a License Agreement with Mattel, Inc., in a form
approved by the City Attorney, to allow the use of the vehicle graphics, including the City seal,
of the El Segundo Police Department for production of die -cast replica toy police vehicles, and
related play sets.
3) Alternatively, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
Mattel, Inc. is proposing to manufacture a "Matchbox" toy version of an El Segundo Police
Department patrol unit and related play sets. They are requesting permission to use the El
Segundo Police Department name and the graphic images depicted on the current patrol
units, including the City seal. The City will not receive any profits made from this production;
however, the City and Police Department may benefit from the public relations and
promotional value of the toys. Additionally, the City retains the right to purchase units at
wholesale price.
A computer generated prototype depiction of the toy has been attached for review and
approval.
ATTACHED SUPPORTING DOCUMENTS:
Protoype depiction of replica police vehicle
Mattel, Inc. Licensor Approval Form
License Agreement between the City of El Segundo and Mattel, Inc.
FISCAL IMPACT:
Operating Budget: n/a
Amount Requested: n/a
Account Number: n/a
Project Phase: n/a
Ap pro priatigA- Regu4": _Yes X No
ORI¢1NAT D)a3Y: DATE: -
D u mm olice Chief �--_2_5<
REVIEXY: DATE:
Jeff Stewart, y Manager
074
mArcNeox. 15 P T1 T1 Too
MATTEL El Segundo, CA
DESIGNER M HERALDA x3770
Date: 8/15/07
SUPERVISOR FELIX HOLST x5449
Toy#
E-mail Heraldam @mattel com
Scale 1 71
Mail Stop. D1 -0142
Tool# MB689
Budget Center #1003 598 000 4160
Scale 1 1 Mattel Confidential / Trade Secret Information
VEHICLE: FORD CROWN VICTORIA (2001)
Licensor FORD/EL SEGUNDO POLICE DEPARTMENT
BODY. Deep Black 0420 -70004
CHASSIS Black
WINDSHIELD. Smoked Tint MB55
INTERIOR. GRAY MB62 iii
WHEELS 2006 Basic Classic Wheel #J2373 w/ NO HOTSTAMP FOIL
LIGHT BAR: RED
= BLACK 742 -70509
WHITE 742 -70501
- MET.GOLD
- BLUE 742 - 245530
U '7 5
G, 76
mArcHeox.
MATTEL, INC.
LICENSOR APPROVAL FORM
1 ;'-- rmmnloio vollnw hinhlinhterl norlinn
RETURN PHYSICAL ITEMS (EXCEPT ARTWORK) TO:
FAX SIGNED FORMS TO:
Mattel, Inc.
Hot Wheels Licensor Liaison
Mail Stop D1 -0124
333 Continental Blvd.
El Segundo, CA 90245 -5012
(310) 252 -2610
sheila.tan(&mattel.com
PRODUCT NAME P
PROJECT #ROY #
LICENSOR S
SENT BY /RETURN TO D
DATE SUBMITTED DATE REQUESTED
El Segundo PD S
Sheila Tan 8
8/16/07 ASAP
DIV. /DEPT. SUBMITTING P
Peralda-
FIRST SUBMISSION ❑ SECOND SUBMISSION LI FINAL SUBMISSION Li OTHER
ITEM SUBMITTED:
❑ ONE -TO -ONE ❑ PACKAGING ❑ PROTOTYPE PHOTO ❑ ADVERTISING
❑ PATTERN ❑ CONCEPT ❑ FIRST SHOTS ❑ STORYBOARD /SCRIPT
O VEHICLE GRAPHICS ❑ PROTOTYPE ❑ PRODUCT REVISION ❑ OTHER
SPECIAL INSTRUCTIONS I COMMENTS I ITEM OR ISSUE SEEKING APPROVAL FOR:
TO BE COMPLETED BY THE LICENSOR
NEXT STEPS /LICENSOR COMMENTS (PLEASE INCLUDE SPECIFIC DETAILS, SUCH AS MEASUREMENTS, PACKAGE TEXT,
SKETCH, PHOTO, ETC.)
ACTION TAKEN. LICENSOR NAME PHONE NUMBER FAX NUMBER
APPROVED
APPROVED W/ CORRECTIONS
NOT APPROVED LICENSOR SIGNATURE DATE
OTHER
Approvals, disapprovals, comments, or notations hereon shall not imply that a binding agreement exists with licensor.
SPECIAL INSTRUCTIONS I COMMENTS I ITEM OR ISSUE SEEKING APPROVAL FOR:
TO BE COMPLETED BY THE LICENSOR
NEXT STEPS /LICENSOR COMMENTS (PLEASE INCLUDE SPECIFIC DETAILS, SUCH AS MEASUREMENTS, PACKAGE TEXT,
SKETCH, PHOTO, ETC.)
ACTION TAKEN. LICENSOR NAME PHONE NUMBER FAX NUMBER
APPROVED
APPROVED W/ CORRECTIONS
NOT APPROVED LICENSOR SIGNATURE DATE
OTHER
Approvals, disapprovals, comments, or notations hereon shall not imply that a binding agreement exists with licensor.
Approvals, disapprovals, comments, or notations hereon shall not imply that a binding agreement exists with licensor.
August 20, 2007
Sergeant Jeff Leyman
El Segundo Police Department
348 Main Street
El Segundo, CA 90245
Re: REVISED -- License Agreement between the City of El Segundo and Mattel,
Inc.
Dear Sergeant Leyman:
Enclosed please find two copies of the revised License Agreement between the City of El
Segundo and Mattel, which grants Mattel the rights to use the City of El Segundo Police
Department trademarks on scaled die -cast replica toys, amongst other products.
If all is in order, please have the Agreement signed where indicated by tab and return
both copies to me at Mattel, Inc., Mail Stop M1 -1225 at the address noted below. I will
have the Agreement executed on behalf of Mattel and will return one fully executed
original to you.
If you have any questions or comments please feel free to call me at (310) 252 -5903 or
by email at Vickie.vega @mattel.com. Thank you.
Sincerely,
Lt�
Vickie Vega
Paralegal, Legal & Business Affairs
Enclosure
•
cc: Megan Margolis, Mattel, Inc.
078
J
333 Continental Boulevard, EI Segundo, 90245 -5012 Telephone 310 252 2000
LICENSE AGREEMENT
THIS AGREEMENT (the "Agreement ") is made and entered into as of the 26th day
of June, 2007 (the "Effective Date ") by and between the City of El Segundo, California,
having its principal office at 314 Main Street, El Segundo, California 90245 (hereinafter
referred to as "LICENSOR ") and Mattel, Inc., a corporation organized under the laws of the
State of Delaware, having its principal office at 333 Continental Boulevard, El Segundo, CA
90245 -5012 (hereinafter referred to as "MATTEL ").
WITNESSETH:
WHEREAS, LICENSOR represents and warrants that it is the owner of various
trademarks, copyrights and other proprietary rights in and to the Property as set forth
below; and
WHEREAS, MATTEL is engaged in the business of manufacturing and selling toys
and games and other consumer products; and
WHEREAS, MATTEL desires to use certain of LICENSOR'S trademarks,
copyrights, and other intellectual property in the manufacturing and distribution of
MATTEL'S products, and
WHEREAS, LICENSOR is willing to license MATTEL the right to use certain of
LICENSOR'S trademarks, copyrights, and other intellectual property in the manufacturing
and distribution of MATTEL'S products under the terms set forth in this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements contained herein and other good and valuable consideration, receipt of which is
hereby acknowledged, it is hereby agreed as follows:
1. LICENSOR hereby grants to MATTEL a non - exclusive royalty -free
worldwide license to use the trademarks, tradenames, copyrights, designs, logos and
likenesses including names, accessories and other visual or identifying representations
associated with the El Segundo Police Department (hereinafter referred to as the
"LICENSED PROPERTY ") in conjunction with the manufacture, marketing, distribution,
promotion and sale of various scaled die -cast and/or plastic toy vehicles replicas
(motorized or non - motorized), related playsets and accessories (hereinafter referred to as
the "LICENSED PRODUCTS "). In accordance with El Segundo Municipal Code (ESMC)
Section 1 -3 -3, LICENSOR agrees that MATTEL'S use of the City Seal is, in part, to
advertise the City of El Segundo and, in doing so, encourage tourism and other economic
development. The rights granted herein shall apply to all channels of distribution,
including without limitation, direct marketing to consumers, the Internet and online
marketing and sale.
333 Continental Boulevard, E Segundo, 90245 -5012 Telephone 310 252 2000 079
2. This Agreement shall become effective on the date first written above and shall continue
in effect for a term expiring on December 31, 2010. MATTEL, in its sole discretion, shall have the
option to renew this Agreement for two additional one -year periods, by written notice given to
LICENSOR at least sixty (60) days prior to the expiration of the then current term.
3. MATTEL shall have no duty to manufacture and/or sell any LICENSED PRODUCTS
or to otherwise exploit the rights granted herein.
4. In the event that MATTEL does manufacture LICENSED PRODUCTS, then, in full
consideration for the rights granted to MATTEL hereunder, MATTEL agrees to furnish LICENSOR
with twelve (12) units of each of such LICENSED PRODUCTS, at no charge, shipping and handling
included. MATTEL shall not be required to furnish to LICENSOR units of any SKU (Stock- keeping
Unit, the identification number assigned to individual products) of any LICENSED PRODUCTS
unless MATTEL has completed a full and final production run for such SKU. No inadvertent failure
of MATTEL to provide any such LICENSED PRODUCTS to LICENSOR shall be deemed a breach of
this Agreement, provided that, to the extent reasonably possible and provided that such LICENSED
PRODUCTS are currently being manufactured, MATTEL shall retrospectively provide such
LICENSED PRODUCTS upon notice from LICENSOR of MATTEL'S failure to do so.
5. MATTEL agrees that the LICENSED PRODUCTS shall be of a standard of quality as
high as that of other similar MATTEL products as of the date of this Agreement.
6. In the event that MATTEL does manufacture LICENSED PRODUCTS, then MATTEL
shall submit to LICENSOR electronic "e- sheet" (e.g. jpeg) samples of each LICENSED PRODUCT
(including packaging and artwork) for approval. LICENSOR shall have twenty (20) business days to
approve or disapprove the electronic "e- sheet" samples, which LICENSOR shall not unreasonably
delay. In any event, the failure by LICENSOR to provide written approval/disapproval within twenty
(20) business days shall be deemed approved. Upon request and subject to availability and in
reasonable quantities, LICENSOR shall have the right to purchase additional quantities of the
LICENSED PRODUCTS from MATTEL at MATTEL'S best wholesale price.
7. MATTEL and its subsidiaries may sublicense or assign among themselves and to their
subsidiaries the rights to manufacture, import, distribute and sell the LICENSED PRODUCT.
MATTEL shall remain directly and primarily obligated under all the provisions of this Agreement and
any default of this Agreement by its subsidiaries shall be deemed a default by MATTEL hereunder.
8. In addition to the other rights licensed to MATTEL herein, LICENSOR herein grants to
MATTEL the right to use the name, nickname, likenesses and visual or identifying representations of
the LICENSED PROPERTY in connection with the marketing and sale of the LICENSED
PRODUCTS, including in advertising, selling, packaging and promotional and publicity materials
relating to the LICENSED PRODUCTS.
9. MATTEL acknowledges that nothing contained in this Agreement is intended as an
assignment or grant to MATTEL of any right, title or interest in or to the LICENSED PROPERTY or
the goodwill attached thereto.
2
r 8 ci
10. LICENSOR shall at all times remain the owner of any and all of the LICENSED
PROPERTY created by LICENSOR and used by MATTEL in connection with the LICENSED
PRODUCTS. MATTEL shall own all intellectual property rights embodied in the LICENSED
PRODUCTS excluding the LICENSED PROPERTY.
11. MATTEL agrees to affix a legal notice on the packaging and other materials that
incorporate the LICENSED PROPERTY in order to denote LICENSOR's trademark and/or copyright in
materials that incorporate the LICENSED PROPERTY. The legal notice when used on the LICENSED
PRODUCTS may be abbreviated in accordance with legal requirements and as space permits. Subject to
LICENSOR's exclusive rights to the LICENSED PROPERTY, MATTEL is expressly permitted to apply
to the LICENSED PRODUCTS any trademarks, artwork and designs that it selects and to apply
appropriate patent, trademark and/or copyright notices. All such trademark and copyright notices shall be
in the name of MATTEL, subject to the LICENSOR's exclusive rights to the LICENSED PROPERTY.
12. LICENSOR represents and warrants to MATTEL that it is the sole owner of the
LICENSED PROPERTY and that it has the full power and authority to enter into this Agreement.
LICENSOR agrees to indemnify MATTEL against any loss and expense including its reasonable
attorneys' fees arising out of any claims, demands, or actions that may be instituted against MATTEL
by reason of any claim of a superior right to any element of the LICENSED PROPERTY.
13. MATTEL agrees to indemnify LICENSOR against all third party claims arising out of
its marketing or sale of the LICENSED PRODUCTS, including claims for personal injury, except that
LICENSOR shall be solely responsible for any claims based upon use of the LICENSED PROPERTY
as permitted by this Agreement. MATTEL shall have the right to control the defense and settlement of
any such third party claims.
14. Either party may terminate this Agreement in the event that the other party materially
breaches the terms of this Agreement or any of the warranties or representations made herein, provided
that the non - breaching party provides the breaching party with written notice of such default and sixty
(60) days within which to remove or cure such default. If there is no removal or cure of the default
within such period, the Agreement may then be immediately terminated by the non - breaching party.
15. Upon expiration or earlier termination of this Agreement, MATTEL agrees to
discontinue all use of the LICENSED PROPERTY, except that MATTEL shall continue to have the
right to sell off all existing inventory bearing the LICENSED PROPERTY, whether completed or in
the process of manufacture, for a period of six (6) months after expiration or early termination.
16. All notices wherever required in this Agreement shall be in writing and sent by
facsimile, certified mail or overnight delivery and shall be deemed given when sent or mailed.
17. If any provisions of this Agreement are for any reason declared to be invalid, the
validity of the remaining provisions shall not be affected thereby.
18. This Agreement and each and every one of its provisions shall be interpreted under the
laws of the State of California.
3 G181
19. This Agreement represents and expresses the entire agreement of the parties and
supersedes all prior agreements, representations and understandings (whether written or oral) between
the parties concerning the subject matter hereof. An amendment or modification of a term or condition
of this Agreement must be in writing duly executed by both parties.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first written above.
MATTEL, INC.
CITY OF EL SEGUNDO, CA
By:
By:
Print Name:
Title:
Print Name:
Title:
Date:
Date:
4
EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to approve a contract with Meggitt Defense Systems
Caswell to repair, modernize, and upgrade the Police Department firing range with a
computerized target system in an amount not to exceed $67,100 in COPS grant funds.
RECOMMENDED COUNCIL ACTION:
1) Authorize the City Manager to execute a contract approved by the City Attorney with
Meggitt Defense Systems Caswell not to exceed $67,100 for repairs, modernization,
and upgrades of the police department firing range.
2) Alternatively, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
On February 20, 2007, the City Council adopted a resolution approving the use of COPS grant
funds to purchase special equipment including new hardware and computer software for the
police department's firing range.
The police department's firearms range target system and computer equipment were installed
over 25 years ago. Neither has been upgraded and they have become antiquated and
frequently malfunction. These failures have resulted in increased costs as officers wait in line
to shoot and repairs become more frequent. In addition, due to the age of this system,
computer software limitations make it difficult to adapt to newer training techniques
- Continued on next page -
ATTACHED SUPPORTING DOCUMENTS:
None.
FISCAL IMPACT:
Operating Budget:
Amount Requested:
Account Number:
Project Phase:
ORIGINA
None
$67,100
001 -400- 3255 -8104
IM
of Police
DATE:
zS - z, -1
REVIEWED BY: DATE:
i --V—
Jeff Stewart, ditty-f-manager
083
7
Background and Discussion (continued)
Staff solicited proposals from three vendors to provide and install equipment and computer
hardware and software upgrades. The following responses were received (including tax and
rounded to the nearest $100):
Action Target Incorporated $58,100
Meggitt Defense Systems Caswell: $67,100
Mancon Manufacturing Incorporated: $79,700
Staff believes Meggitt Defense Systems Caswell is the best bidder for two primary reasons:
1) Their system includes a portable controller which is compatible and nearly identical to the
host computer, allowing Range Staff to accompany the shooter on the firing line during training
scenarios, resulting in more effective, flexible, realistic training in a safer environment. The
other vendors do not offer this option.
2) Caswell, which was later acquired by Meggitt Defense Systems, originally installed the
existing firearms range target system. Since the firearms range was first installed, the police
department has contracted with Meggitt Defense Systems Caswell for regular maintenance,
ballistic upgrades, and equipment repairs and been pleased with their service. Their familiarity
with the existing system should facilitate the installation of the new equipment.
Staff requests council approve the expenditure of up to $67,100 to Meggitt Defense Systems
Caswell.
084
EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding the award a Standard Public Works Contract to
KDC, Inc., dba Dynalectric for construction of the Nash Street/Douglas Street One -Way to
Two -Way Street Conversion Project from Imperial Highway to El Segundo Boulevard;
authorization to employ the County of Los Angeles Department of Public Works (LACDPW) for
inspection and testing services for the project; and, authorization to negotiate a change order
for installation of a 30 -foot tower for aircraft surveillance camera equipment near the
intersection of Imperial Avenue and Hillcrest Street. Approved Capital Improvement Project.
Project No. PW 07 -09.
(Fiscal Impact: Construction contract amount = $1,209,900, LACDPW inspection and testing =
$175,000, Early turn tower installation = $10,000)
RECOMMENDED COUNCIL ACTION:
(1) Authorize the City Manager to execute a Standard Public Works Contract in a form as
approved by the City Attorney with KDC, Inc., dba Dynalectric (Dynalectric) in the amount of
$1,209,900.00 for construction of the Nash Street/Douglas Street One -Way to Two -Way Street
Conversion Project from Imperial Highway to El Segundo Boulevard; (2) Authorize the use of
County of Los Angeles Department of Public Works inspection and materials testing services
for the Project pursuant to the provisions of the General Services Agreement with Los Angeles
County in an amount not to exceed $175,000; (3) Authorize the City Manager to execute a
change order to the recommended Contract with Dynalectric for installation of a 30 -foot tower
for aircraft surveillance camera equipment near the intersection of Imperial Avenue and
Hillcrest Street in an amount not to exceed $10,000; and, (4) Alternatively, discuss and take
other action related to this item.
BACKGROUND & DISCUSSION:
(Background and Discussion provided on next page)
ATTACHED SUPPORTING DOCUMENTS:
Location Map
FISCAL IMPACT:
Operating Budget:
Capital Improvement Program: $5,000,000
Amount Requested: $1,394,900
Account Number: 702 -400- 8141 -8646 (Traffic Mitigation fees) $484,715
301 - 400 -8203 -8940 (MTA grant funds) $900,185
001 -400- 2901 -8108 (Non -Dept. Equip. budget) $10,000
Project Phase: Award of Contract
Appropriation Required: No
VORIGINA D ATE: Directo r of Public Works
REVIEWED BY: DATE:
29 0T
Jeff Stewart, C Manager
085
BACKGROUND & DISCUSSION:
Nash and Douglas Streets were converted to one -way operation in the mid 1990s as part of
the 105 Freeway construction. Through the 2001 Call for Projects administered by the
Metropolitan Transportation Authority (MTA), the City received a grant to convert Nash and
Douglas Streets back to two -way streets. On February 21, 2006 and June 19, 2007, the City
entered into Memoranda of Understanding with the MTA setting the terms and conditions for
the receipt of grant funds in the amount of $1,207,000 and $2,043,000 respectively totaling
$3,250,000. The required 35% local fund match in the amount of $1,750,000 was previously
appropriated by City Council from Traffic Mitigation Funds bringing the total funding for the
project to $5,000,000 to cover estimated costs and anticipated cost escalations. Bids received
were much lower than expected indicating that the pre - project estimate was very conservative
and competition in the industry is yielding more competitive bids. As detailed below, a
significant balance of funding will remain after project completion.
Construction Contract
On June 19, 2007, the City Council adopted the plans and specifications and authorized staff
to advertise the project for construction bids. The scope of work includes modifications to
twelve (12) traffic signals, slurry sealing, striping and signs to accommodate two -way
operation.
On August 21, 2007 the City Clerk received and opened four (4) bids as follows:
1. KDC, Inc., dba Dynalectric $1,209,900
2. Terno, Inc. $1,234,726
3. Highlight Electric Inc. $1,277,800
4. Comet Electric Inc. $1,502,000
Staff has contacted references of the low bidder and has received favorable responses. Staff
recommends awarding a Standard Public Works Contract to lowest responsible bidder, KDC,
Inc., dba Dynalectric in the amount of $1, 209,900.00
086
Funding Status
Bids received for construction of the project were much lower than original estimates. It is
expected that a significant balance of funding will remain after project completion as indicated
below. The balance of Traffic Mitigation Funds can be returned to fund balance; however, the
balance of grant funds will be reallocated at the discretion of the MTA.
Available Funds
Grant funding
Local match (Traffic Mitigation Funds)
$3,250,000
$1,750,000
Total funding available
$5,000,000
Projected Project Costs
Design
Inspection and testing
Construction
$ 222,004
$ 175,000
$ 1,209,900
10% Construction contingency $ 120,990
Total projected costs $ 1,727,894
Projected Use of Funds
Expected Balance
Costs Upon Completion
Grant Funding $ 1,123,131 $2,126,869
Local Match (Traffic Mitigation Funds) $ 604,763 $1,145,237
Total $ 1,727,894 $3,272,106
Schedule
It is expected that construction will start in early October 2007 and be complete by the end of
March 2008.
Los Angeles County Inspection and Testing
Construction inspection and materials testing are key to the successful completion of the
project. The project includes installation of specialized traffic signal equipment requiring
specialized inspection and testing. It is recommended that County traffic signal inspectors and
equipment testers be utilized on the project due to their extensive experience with similar
projects and their specific knowledge of City of El Segundo traffic signal equipment. The
County has indicated that it has qualified staff available to perform these services.
A General Services Agreement (Agreement) exists between the City and the County setting
the terms and conditions for the County to furnish services to the City. Traffic signal
maintenance services are currently provided by the County under this Agreement. Under the
Agreement, the City can also request other County services. The specialized inspection and
equipment testing required for the project is a service of the type covered by the Agreement. It
is estimated that the cost to provide these services will be $175,000. Under the Agreement,
the City pays the County their actual costs of providing the requested service.
%; 8 i
Change Order for Tower Installation
As part the City's effort to discourage air traffic from making early turns over the City, an
improved camera system will be installed several hundred feet west of the intersection of
Imperial Avenue and Hillcrest Street. The system will replace the existing antiquated system
at the same location and will consist of cameras mounted on a 30 -foot aluminum tower. It is
proposed that the City purchase the tower directly and that change order be issued to the
recommended Dynalectric contract for improvements necessary to erect the tower. It is
recommended that Council authorize the City Manager to execute a change order to the
recommended Dynalectric contract in an amount not to exceed $10,000 to construct the
footing, install approximately 20 feet of conduit, and install the City- furnished tower. Funds for
this change order will be provided through the Non - Department Equipment Budget (001 -400-
2901- 8108).
088
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EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding the purchase of a heating boiler from R.F.
MacDonald Company for the replacement of the heating system boiler at the Library (111 W.
Mariposa Avenue). (Fiscal Impact = $18,370.66)
RECOMMENDED COUNCIL ACTION:
Recommendation — (1) Authorize issuance of a purchase order
to R. F. MacDonald Company
in the amount of $18,370.66 and, (2) Alternatively, discuss and
take other action related to this
item.
BACKGROUND & DISCUSSION:
The existing boiler serving the Library was installed in 1991
and only provides one -half the
heating capacity for the library building. In winter, the boiler operates continuously and cannot
adequately heat the building,
(Background and discussion continued on next page)
ATTACHED SUPPORTING DOCUMENTS:
None
FISCAL IMPACT:
Operating Budget: $306,000.00
Amount Requested: $ 18,370.66
Account Number: 405 -400- 0000 -6215 ($18,370.66)
Project Phase: Issue Purchase order
Appropriation Required: No
ORIGINATED BY:
DATE:
�-zcl07
Steven Finton, Director of Public Works
REVIEWED BY:
DATE:
�At�
eityJeff
Stewart, Manager
w 40
090
BACKGROUND & DISCUSSION: (CONTINUED)
Staff solicited bids from several suppliers and received only the following 2 bids:
1. R.F. MacDonald Co. $18,370.66
2. Acco Engineered Systems $25,454.98
The proposed boiler is a Cleaver Brooks, Clearfire High Efficiency Condensing boiler, with
98% efficiency, stainless steel heat exchanger. It has sufficient capacity and heating demand
to provide a comfortable environment in the building; it is certified for SCAQMD 1146.2
emissions and qualifies for rebates from Southern California Gas Company.
The new boiler will be installed by City staff. Staff will remove the existing boiler and install the
new boiler, venting and piping as required. Funding for the Library boiler is budgeted in the
Fiscal Year 2006 -2007 Facilities Maintenance Fund. The cost to purchase the new boiler is
$18,370.66.
09.1
EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Consent
AGENDA DESCRIPTION:
Consideration and possible action regarding first amendment of Professional Services
Agreement No. 3451 between Accounting, Tax and Advisory of Orange County, L.L.C. (CBIZ)
and the City of El Segundo for $60,000 due to the vacancy of the Director Administrative
Services position in the Administrative Services Department. (Fiscal Impact $60,000 off -set
with salary savings of $104,000)
RECOMMENDED COUNCIL ACTION:
(1) Authorize the City Manager to amend Professional Services Agreement No. 3451 on
behalf of the City for temporary professional accounting services with CBIZ for an amount
not to exceed $60,000, as approved to form by the City Attorney;
(2) Alternatively discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
Due to a temporary shortage of staffing within the Administrative Services Department,
professional services are required to assist with the budget and other special projects.
(Please see attached page)
ATTACHED SUPPORTING DOCUMENTS:
None
FISCAL IMPACT:
Operating Budget: $60,000
Amount Requested: $60,000
Account Number: 001 -400- 2502 -6214
Project Phase:
Appropriation Required: x Yes -No
ORIGINATED BY: DATE:
Deborah Cullen, Interim Finance Director
REVIEWED BY: DATE:
6,ce
�' 8/Z 9/b7
Jeff Stewart, eit Manager
Y 9
10
�
09
BACKGROUND & DISCUSSION (Continued):
CBIZ has been providing these services for the past three months, and staff is requesting
approval to extend these services to assist in the completion of the 2007 -2008 budget
process, completion of the Eden Financial Software conversion as well as other assignments
as needed. Staff is recommending that the City Council authorize the City manager to
amend the professional services agreement with CBIZ for an amount not to exceed $60,000
and until the department has achieved full staffing.
SCOPE OF SERVICES (CBIZ)
The scope and cost of services are as follows:
Compile, finalize, and distribute the FY 2007 -2008 Adopted Budget.
Assist with completion of the Eden Financial System conversion and set -up position,
based budgeting module to be used for the FY 2008 -2009 budget.
r Assist in training of vacant position once the position has been filled.
Assist in documentation of payroll and budget processes.
r Assist Interim Director of Finance in other areas as needed.
COST OF SERVICES (CBIZ)
$90 per hour - Hourly rate to include all travel and other expenses.
(!93
EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Consent
AGENDA DESCRIPTION:
Consideration and possible action regarding extending the Professional Services
Agreement No. 3450 for financial auditing services with Lance, Soll & Lunghard for one
year through the end of Fiscal Year 2007 -2008. (Fiscal Impact: Fiscal Year 2007 -2008
$36,500)
RECOMMENDED COUNCIL ACTION:
(1) Authorize the City Manager to approve a one -year extension amendment of Professional
Services Agreement No. 3450 for financial auditing services with Lance, Soll & Lunghard
through 2007 -2008 for $36,500, as approved to form by the City Attorney; (2) Alternatively
discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
On August 17, 1999 the City Council awarded a contract for audit services for FY 1999 -2000
through FY 2001 -2002 to Lance, Soll & Lunghard with an option to extend the agreement two
additional years for FY 2002 -2003 and FY 2003 -2004. On September 3, 2002 the two -year
extension was approved. On May 18, 2004 the contract was extended an additional year
through FY 2004 -2005. On September 20, 2005 a two -year extension, which represented no
increase in fees in FY 2005 -2006 and an increase in fees of 3% in FY 2006 — 2007 was
approved. Staff is requesting a one -year contract extension through the end of FY 2007 -2008.
(Background and discussion is continued on the next page)
ATTACHED SUPPORTING DOCUMENTS:
Proposal from Lance, Soll, and Lunghard
FISCAL IMPACT:
Operating Budget: $36,500
Amount Requested:
Account Number: 001 -400- 2502 -6214
Project Phase:
Appropriation Required: _ Yes X No Included in the FY 2007 -2008 budget.
ORIGINATED BY: DATE
Deborah Cullen, Interim Finance Director
REVIEWED BY: DATE:
S z9 /o7
Jeff Stewart, City Manager
09q,
BACKGROUND & DISCUSSION
The one -year extension will provide continuity and will ease the burden on staff associated
with the Eden Accounting System conversion, which is currently in process and expected to be
complete by the end of the fiscal year. Staff will open this agreement to a competitive RFP
competitive process prior to next year's audit.
095
July 25, 2007
Ms. Deborah Cullen
Interim Finance Director
City of El Segundo
350 Main Street
El Segundo, CA 90245 -3895
Dear Ms. Cullen:
We are pleased to confirm our understanding of the services we are to provide the City of El Segundo for
the year ended September 30, 2007. We will audit the financial statements of the governmental activities,
the business -type activities, the aggregate discretely presented component units, each major fund and
the aggregate remaining fund information, which collectively comprise the entity s basic financial
statements, of the City of El Segundo as of and for the year ended September 30, 2007. Also, the
document we submit to you will include the following additional information that will be subjected to the
auditing procedures applied in our audit of the financial statements:
1. Management's discussion and analysis (prepared by City).
2. Combining and individual fund schedules presented as supplemental schedules.
3. Schedule of expenditures of federal awards.
Audit Objectives
The objective of our audit is the expression of an opinion as to whether your financial statements are fairly
presented, in all material respects, in conformity with U.S. generally accepted accounting principles and
to report on the fairness of the additional information referred to in the first paragraph when considered in
relation to the financial statements taken as a whole. The objective also includes reporting on:
Internal control related to the financial statements and compliance with laws, regulations and the
provisions of contracts or grant agreements, noncompliance with which could have a material
effect on the financial statements in accordance with Government Auditing Standards.
Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance
with laws, regulations and the provisions of contracts or grant agreements that could have a
direct and material effect on each major program in accordance with the Single Audit Act
Amendments of 1996 and OMB Circular A -133, Audits of States, Local Gouemments, and
Non - Profit Organizations.
75 YEARS
1929 2004
0i EX &ON e
203 N. Brea Blvd., Suite 203 • Brea, CA 92821 -4056 • (714) 672 -0022 • Fax (714) 672 -0331 • www.lslcpas.com
09
Brandon W. Burrows
nce
Donald L. Parker
l&
u
LL
David E. Hale
hard
Arrote,.anidCor o,�n
Donald G. Slater
LLP
Richard K. Kikuchi
Certified Public Accountants
Retired
Robert C. Lance
191+19%
Richard C. Soil
Fred J. Lunghard, Jr.
IM1999
July 25, 2007
Ms. Deborah Cullen
Interim Finance Director
City of El Segundo
350 Main Street
El Segundo, CA 90245 -3895
Dear Ms. Cullen:
We are pleased to confirm our understanding of the services we are to provide the City of El Segundo for
the year ended September 30, 2007. We will audit the financial statements of the governmental activities,
the business -type activities, the aggregate discretely presented component units, each major fund and
the aggregate remaining fund information, which collectively comprise the entity s basic financial
statements, of the City of El Segundo as of and for the year ended September 30, 2007. Also, the
document we submit to you will include the following additional information that will be subjected to the
auditing procedures applied in our audit of the financial statements:
1. Management's discussion and analysis (prepared by City).
2. Combining and individual fund schedules presented as supplemental schedules.
3. Schedule of expenditures of federal awards.
Audit Objectives
The objective of our audit is the expression of an opinion as to whether your financial statements are fairly
presented, in all material respects, in conformity with U.S. generally accepted accounting principles and
to report on the fairness of the additional information referred to in the first paragraph when considered in
relation to the financial statements taken as a whole. The objective also includes reporting on:
Internal control related to the financial statements and compliance with laws, regulations and the
provisions of contracts or grant agreements, noncompliance with which could have a material
effect on the financial statements in accordance with Government Auditing Standards.
Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance
with laws, regulations and the provisions of contracts or grant agreements that could have a
direct and material effect on each major program in accordance with the Single Audit Act
Amendments of 1996 and OMB Circular A -133, Audits of States, Local Gouemments, and
Non - Profit Organizations.
75 YEARS
1929 2004
0i EX &ON e
203 N. Brea Blvd., Suite 203 • Brea, CA 92821 -4056 • (714) 672 -0022 • Fax (714) 672 -0331 • www.lslcpas.com
09
LLSW ,e s
LuNhani
LLP
CERTIFIED PUBLIC ACCOUNTANTS
City of El Segundo
Engagement Letter
July 25, 2007
Page 2
The reports on internal control and compliance will each include a statement that the report is intended for
the information and use of the audit committee or City Council, management, specific legislative or
regulatory bodies, federal awarding agencies and, if applicable, pass- through entities and is not intended
to be, and should not be, used by anyone other than these specified parties.
Our audit will be conducted in accordance with U.S. generally accepted auditing standards; the standards
for financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A -133,
and will include tests of accounting records, a determination of major program(s) in accordance with
Circular A -133, and other procedures we consider necessary to enable us to express such an opinion and
to render the required reports. If our opinion on the financial statements or the Single Audit compliance
opinion is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason,
we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline
to express an opinion or to issue a report as a result of this engagement.
Management Responsibilities
Management is responsible for establishing and maintaining internal control and for compliance with the
provisions of applicable laws, regulations, contracts, agreements and grants. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected benefits and related costs
of the controls. The objectives of internal control are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that
transactions are executed in accordance with management's authorizations and recorded properly to
permit the preparation of financial statements in accordance with generally accepted accounting
principles, and that federal award programs are managed in compliance with applicable laws and
regulations and the provisions of contracts and grant agreements.
Management is responsible for making all financial records and related information available to us. We
understand that you will provide us with such information required for our audit and that you are
responsible for the accuracy and completeness of that information. We will advise you about appropriate
accounting principles and their application and will assist in the preparation of your financial statements,
including the schedule of expenditures of federal awards, but the responsibility for the financial
statements remains with you. As part of our engagement, we may propose standard, adjusting or
correcting journal entries to your financial statements. You are responsible for reviewing the entries and
understanding the nature of any proposed entries and the impact they have on the financial statements.
That responsibility includes the establishment and maintenance of adequate records and effective internal
control over financial reporting and compliance, the selection and application of accounting principles and
the safeguarding of assets. Management is responsible for adjusting the financial statements to correct
material misstatements and for confirming to us in the representation letter that the effects of any
uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest
period presented are immaterial, both individually and in the aggregate, to the financial statements taken
as a whole.
tip;
sal 6
Lunghard
LLP
CERTflED I(IAIIC ACCOf1N fAN75
City of El Segundo
Engagement Letter
July 25, 2007
Page 3
You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud affecting the government involving (a)
management, (b) employees who have significant roles in internal control, and (c) others where the fraud
could have a material effect on the financial statements. You are also responsible for informing us of your
knowledge of any allegations of fraud or suspected fraud affecting the government received in
communications from employees, former employees, grantors, regulators or others. In addition, you are
responsible for identifying and ensuring that the entity complies with applicable laws and regulations.
Additionally, as required by OMB Circular A -133, it is management's responsibility to follow up and take
corrective action on reported audit findings and to prepare a summary schedule of prior audit findings and
a corrective action plan. The summary schedule of prior audit findings should be available for our review
prior to the start of our audit.
Audit Procedures - General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether
from errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or
governmental regulations that are attributable to the entity or to acts by management or employees acting
on behalf of the entity. As required by the Single Audit Act Amendments of 1996 and OMB Circular A-
133, our audit will include tests of transactions related to major federal award programs for compliance
with applicable laws and regulations and the provisions of contracts and grant agreements. Because an
audit is designed to provide reasonable, but not absolute assurance and because we will not perform a
detailed examination of all transactions, there is a risk that material misstatements or noncompliance may
exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements
or violations of laws or governmental regulations that do not have a direct and material effect on the
financial statements or major programs. However, we will inform you of any material errors and any
fraudulent financial reporting or misappropriation of assets that comes to our attention. We will also inform
you of any violations of laws or governmental regulations that come to our attention, unless clearly
inconsequential. We will include such matters in the reports required for a Single Audit. Our responsibility
as auditors is limited to the period covered by our audit and does not extend to matters that might arise
during any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, creditors
and financial institutions. We will request written representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will
also require certain written representations from you about the financial statements and related matters.
Audit Procedures - Internal Controls
In planning and performing our audit, we will consider the internal control sufficient to plan the audit in
order to determine the nature, timing and extent of our auditing procedures for the purpose of expressing
our opinions on the City of El Segundo's financial statements and on its compliance with requirements
applicable to major programs.
0y8
E unghard
CENT1f1ED PUBUC ACCOUNTANTS
City of El Segundo
Engagement Letter
July 25, 2007
Page 4
We will obtain an understanding of the design of the relevant controls and whether they have been placed
in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness
of certain controls that we consider relevant to preventing and detecting errors and fraud that are material
to the financial statements and to preventing and detecting misstatements resulting from illegal acts and
other noncompliance matters that have a direct and material effect on the financial statements. Tests of
controls relative to the financial statements are required only if control risk is assessed below the
maximum level. Our tests, if performed, will be less in scope than would be necessary to render an
opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control
issued pursuant to Government Auditing Standards.
As required by OMB Circular A -133, we will perform tests of controls to evaluate the effectiveness of the
design and operation of controls that we consider relevant to preventing or detecting material
noncompliance with compliance requirements applicable to each major federal award program. However,
our tests will be less in scope than would be necessary to render an opinion on those controls and,
accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB
Circular A -133.
An audit is not designed to provide assurance on internal control or to identify reportable conditions.
However, we will inform the governing body or audit committee of any matters involving internal control
and its operation that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of the internal control that, in our
judgment, could adversely affect the entity s ability to record, process, summarize and report financial
data consistent with the assertions of management in the financial statements. We will also inform you of
any nonreportable conditions or other matters involving internal control, if any, as required by
Government Auditing Standards and OMB Circular A -133.
Audit Procedures - Compliance
Our audit will be conducted in accordance with the standards referred to in the section titled Audit
Objectives. As part of obtaining reasonable assurance about whether the financial statements are free of
material misstatement, we will perform tests of the City of El Segundo's compliance with applicable laws
and regulations and the provisions of contracts and agreements, including grant agreements. However,
the objective of those procedures will not be to provide an opinion on overall compliance and we will not
express such an opinion in our report on compliance issued pursuant to Government Auditing
Standards.
OMB Circular A -133 requires that we also plan and perform the audit to obtain reasonable assurance
about whether the auditee has complied with applicable laws and regulations and the provisions of
contracts and grant agreements applicable to major programs. Our procedures will consist of the
applicable procedures described in the OMB Circular A -133, Compliance Supplement, for the types of
compliance requirements that could have a direct and material effect on each of the City of EI Segundo's
major programs. The purpose of those procedures will be to express an opinion on the City of El
Segundo's compliance with requirements applicable to each of its major programs in our report on
compliance issued pursuant to OMB Circular A -133.
09. 9
Lance
SdI s
Lunghard
LLP
CERTIFIED PUBLIC ACCOUNTANTS
City of El Segundo
Engagement Letter
July 25, 2007
Page 5
Audit Administration, Fees, and Other
In addition, we would prepare the Annual Report of Financial Transactions to the State Controller's
Office. This additional services to be provided is considered nonattest (nonaudit) services, management
is responsible for making all management decisions and perform all management functions; designate a
competent employee, preferably within senior management, to oversee the services; evaluate the
adequacy and results of the services; and establish and maintain internal controls, including monitoring
ongoing activities.
At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data
Collection Form that summarizes our audit findings, We will provide a copy of our reports to the Federal
Clearing House through their web site; however, it is management's responsibility to submit the reporting
package (including financial statements, schedule of expenditures of federal awards, summary schedule
of prior audit findings, auditors' reports, and a corrective action plan) along with the Data Collection Form
to the designated federal clearinghouse and, if appropriate, to pass- through entities. The Data Collection
Form and the reporting package must be submitted within the earlier of 30 days after receipt of the
auditors' reports or nine months after the end of the audit period, unless a longer period is agreed to in
advance by the cognizant or oversight agency for audits. At the conclusion of the engagement, we will
provide information to management as to where the reporting packages should be submitted and the
number to submit.
The audit documentation for this engagement is the property of Lance, Soll & Lunghard LLP and
constitutes confidential information. However, pursuant to authority given by law or regulation, we may be
requested to make certain audit documentation available to the City's assigned Cognizant or Oversight
Agency for Audit or its designee, a federal agency providing direct or indirect funding, or the U.S. General
Accounting Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out
oversight responsibilities. We will notify you of any such request. If requested, access to such audit
documentation will be provided under the supervision of Lance, Soil & Lunghard, LLP personnel.
Furthermore, upon request, we may provide copies of selected audit documentation to the
aforementioned parties. These parties may intend, or decide, to distribute the copies or information
contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of seven years after the date
the auditors' report is issued or for any additional period requested by the City's Cognizant Agency,
Oversight Agency for Audit, or Pass - through Entity. If we are aware that a federal awarding agency, pass -
through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit
finding for guidance prior to destroying the audit documentation.
Our fees for these services will be based on the actual time spent at our standard hourly rates, plus other
out -of- pocket costs such as report production, typing, postage, etc. Our standard hourly rates vary
according to the degree of responsibility involved and the experience level of the personnel assigned to
your audit. Our invoices for these fees will be rendered as work progresses and are payable on
presentation. Final billings would be rendered subsequent to the submission of final reports. You would
be billed for the time to complete the services discussed extended at standard rates, but not to exceed
the maximum fee. If unexpected circumstances arise during the course of our examination, your
approval will be obtained before we proceed further and incur additional costs.
Lance
Is
LLS Lunghard
L L P
CERTIFIED PUBLIC ACCOUNTANTS
City of El Segundo
Engagement Letter
July 25, 2007
Page 6
Maximum fees for the audits for the fiscal year ending September 30, 2007 are as follows:
City of El Segundo $ 33,000
Single Audit 2,000
State Controller's Report 1.500
Not to Exceed Totals �.
Standard Hourly Rates (Auditing and Consulting Services)
Partners $ 200.00
Managers 110.00
In- Charge Auditors 90.00
Staff Auditors 80.00
Government Auditing Standards require that we provide you with a copy of our most recent external
peer review report and any letter of comment, and any subsequent peer review reports and letters of
comment received during the period of the contract. Our 2004 peer review report accompanies this letter.
We appreciate the opportunity to be of service to the City of El Segundo and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us know. If
you agree with the terms of our engagement as described in this letter, please sign the enclosed copy
and return it to us.
Very , truly yours,
Lance, Soll & Lunghard, LLP
RESPONSE:
This letter correctly sets forth the understanding of the City of El Segundo
By:
Title:
Date:
11,11
EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding the presentation of fiscal year 2006 -2007 Third
Quarter Financial Budget Review. Fiscal Impact (None)
RECOMMENDED COUNCIL ACTION:
(1) Receive and file Fiscal Year 2006 -2007 Third Quarter Financial presentation,
(2) Alternatively discuss and take other action related to this item
BACKGROUND & DISCUSSION:
The focus of the FY 2006 -2007 third quarter financial review is to review revenues and
expenditures in all funds for the period of October 1, 2006 through June 30, 2007. This report
analyzes the estimated totals for revenues, operational and capital expenditures in all funds for
the period of October 1, 2006 through September 30, 2007.
(Background and discussion is continued on the next page.)
ATTACHED SUPPORTING DOCUMENTS:
None.
FISCAL IMPACT: None
Operating Budget:
Amount Requested:
Account Number:
Project Phase:
Appropriation Required: _ Yes X No
ORIGINATED BY: DATE:
Deborah Cullen jnje�m Director of Finance
REVIEWED
Jeff W;yr, City Manager
DATE: 1) Al
12
�o�
BACKGROUND & DISCUSSION (CONTINUED)
REVENUES
The following is an analysis of General Fund revenues by the ten major categories:
a. Property Taxes and Intergovernmental Revenues
These categories combined are on target with budget.
b. Other Taxes (Includes Sales, Utility User's, Transient Occupancy and Other
Taxes
This category is currently below target with budget, mainly attributable to a decrease in Gas
Utility User's Taxes.
Sales tax is 2.18% higher for the first three quarters of this fiscal year when compared to the
first three quarters of last fiscal year. We anticipate a full quarter of sales tax impact from
Plaza El Segundo at the end of FY 2006 -2007. Staff will continue to monitor and report the
revenue increase as data becomes available.
Franchise Taxes are estimated to exceed the budgeted amounts by approximately 28 %. This
revenue source is up $687,000 or 28% for the first nine months of FY 2006 -2007 compared to
the same period last fiscal year.
Transient Occupancy Taxes are estimated to come in ahead of target with budget. This
revenue source is up $517,000 or 17.2% for the first nine months of FY 2006 -2007 compared
to the same period last fiscal year mainly attributable to an increase in occupancy.
Due to the uncertainty of the operational status of the local power plant, the Gas Utility User's
tax budget was significantly reduced the past two fiscal years. This revenue source is still
continuing to decrease, and, at June 30, 2007, is down $972,000 or 57.6% from the same
period last year.
Co Generated Electric Utility User's taxes are estimated to come in lower than budget. This
revenue source is down $393,000 or 20.6% from the same period last year.
Electric Utility User's taxes are also estimated to come in lower than budget. This revenue
source is down $423,000 or 17.9% from the same period last year.
Also included in this category are all other utility user's taxes combined, which are on target
with budget.
c. Business License Taxes
The City has received $9.4 million or 110% of the budget through June 30, 2007, compared to
$8.09 million or 87.0 % of the budget through the same period last fiscal year. This is primarily
1 U ��
BACKGROUND & DISCUSSION (CONTINUED)
due to the new businesses beginning operations in El Segundo. Businesses receive a 50%
credit on their business license based on Sales Tax the City receives during the prior period of
July to June the previous year.
This revenue source is anticipated to come in over budget by an estimated 12% by the end of
the fiscal year.
d. Other License and Permits and Charges for Services
These two categories combined are currently ahead of target budget. This is mainly
attributable to a combined increase of $871,000 or 23.8% over same period last year. The City
has received $2,938,274 in building permits and plan check fees or 180% of budget through
June 30, 2007. The most significant part of the increase is from plan check fees, which is
192.0% of target budget with 75.0% of the fiscal year complete. Although the amounts over
budget appear to be significant, they are offset by expenditures in the same amount, as the
services for the plan checks are outsourced. The increased demand for plan checks is mainly
attributed to the Plaza El Segundo project.
e. Fines and Forfeitures
This category is currently on target with budget.
f. Interest and Rentals
This category is currently on target with budget.
Total Revenues in this category are 83.0% with 75.0% of the fiscal year complete.
Total Estimated Revenues
With 75% of the fiscal year complete, many of the General Fund revenue categories are either
ahead of or on target with budget which will help offset the revenue categories that are below
budget. Overall, General Fund revenues are 90.5% of budget through June 30, 2007 and we
anticipate to end the year ahead of budget. .
It should be noted that historically, Property Tax Revenues collected in the fourth quarter are
approximately 9.18% of total revenues for that category. In addition, approximately 98% of
total Business License Revenues are collected during the first three quarters.
GENERAL FUND EXPENDITURES
The following is an analysis of General fund expenditures by major categories:
1vq
BACKGROUND & DISCUSSION (CONTINUED)
A. Elected Officials and Administrative Support Services
This category, which consists of the City Council, City Clerk, City Treasurer, City Manager's
office, and Administrative Services, is currently on target with budget.
B. Non Department
Non Department expenditures are currently on target with budget.
C. Public Safety
The Police Department is currently expected to come in below budget at year -end
The Fire Department is currently expected to end the year over budget.
D. Planning and Building Safety
This department, which consists of the Planning and Building Safety is estimated to come in
$207,000 over budget attributable to the increase in projects requiring additional outsourcing of
plan check reviews. This is also reflected in the General Fund revenues as an increase in
planning revenues.
E. Public Works
This function's General Fund divisions consist of Government Buildings, Engineering, Street
Services, Street Maintenance, Traffic Safety, Solid Waste Recycling, Wastewater, Storm
Drains, Equipment Maintenance and Administration.
Other fund operations in this function include Gas Tax, Facilities Maintenance and the Water
Fund.
The total category is currently on target with budget.
10 5
ReCKGROUND & DISCUSSION (CONTINUED)
Recreational and Cultural
The Recreation and Cultural services function includes the Recreation and Parks
Department and the Library Department.
The Parks Department is on target with budget.
The Recreation Department is on target with budget.
The Library is on target with budget.
Total General Fund Estimated Expenditures
With 75% of the fiscal year complete, General Fund expenditures are on target with budget
and there are no adjustments needed at this time.
Expenditures, fund balances and retained earnings in all other funds appear to be on target
with budget.
Proprietary Funds
Liability Insurance Fund
The Liability Insurance Fund budgeted expenses will be $1,329,900. This will be paid by
charging the General Fund $635,550 and all other funds the balance of $694,350. Staff will
continue to work with ICRMA's actuary to review the financial health of this fund.
Golf Course Fund
The Golf Course Fund has a deficit of just over $3.7 million as of September 30, 2006. This is
attributable to a combination of debt service requirements on the Golf Course bonds and lower
revenues the past several fiscal years. The City's management company, Donovan, Lane and
Associates, has continued to make a number of operational improvements which have
resulted in a reduction in operational expenses and is focused on improving the long term
economic viability of the Golf Course. We anticipate this deficit to be reduced by $200,000 by
the end of 2007.
With the changes that Donovan, Lane, and Associates continue to make, together with the
termination of the debt service requirement on the bonds in August 2012 and the increase in
rates for the Golf Course and Driving Range, the Golf Course will be in a better position to
meet the long -term objective of breaking even on an annual basis.
10 0
BACKGROUND & DISCUSSION (CONTINUED)
Water and Sewer Funds
The Water and Sewer funds are projected to come in on target.
Worker's Compensation Fund
The Worker's Compensation Fund is fully- funded through the end of the third - quarter and
there is no need for any adjustments to this fund at this time. We will continue to monitor these
expenses closely and stay in contact with the ICRMA actuary.
Conclusion
Third Quarter actuals show General Fund revenues of 90.5% of budget with 75.0% of the
fiscal year complete and expenditures on target with budget. Staff is estimating a FY 2006-
2007 General Fund surplus, which will be deposited in the Economic Uncertainty Fund.
Staff will continue to monitor all revenues and expenditures very closely.
1 r►7
EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding the approval of a list of consultants to provide
environmental review services pursuant to California Environmental Quality Act guidelines
(CEQA) and National Environmental Policy Act (NEPA) regulations to assist the City in the
processing of entitlement projects and the authorization for the City Manager to sign
Professional Service Agreements for developer reimbursed environmental review services in
amounts not to exceed $75,000. (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1. Approve the attached list of consultants to provide environmental review services;
2. Authorize the City Manager to sign Professional Service Agreements for applicant
reimbursed environmental review services approved as to form by the City Attorney in
an amount not to exceed $75,000;
3. Alternatively, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
The Planning and Building Safety Department currently provides for administration and review
of all entitlement projects concerning environmental review pursuant to CEQA and NEPA
(Continued on next page...)
ATTACHED SUPPORTING DOCUMENTS:
1. List of qualified environmental planning consultants
FISCAL IMPACT: None
Operating Budget: NIA
Amount Requested: NIA
Account Number: NIA
Project Phase: NIA
Appropriation Required: _ Yes X No
ORIGIN ED BY: DATE:
laz 1/--7- C.d e c
D 7
Gary Chicots, ector, Planning and Building Safety Department
REVIEWED BY:'� /� DATE:
0 A 9/0 7
Jeff Stewart, City Manager
13
BACKGROUND & DISCUSSION: (cont.)
regulations. Planning and Building Safety staff along with the City Attorney has provided
review of projects subject to CEQA and NEPA through the development process. The
increase in size, scope, and complexity of recent projects necessitates the need to create a
list of qualified consultants that are pre- approved to provide on -call environmental review
services. It's anticipated that the type of projects that will utilize this service will be projects
that require more extensive environmental review, primarily Mitigated Negative Declarations
and focused project Environmental Impact Reports.
In order to accomplish the expedited processing of projects, staff is requesting City Council to
consider pre - approval of the cost and appropriation and authorize the City Manager to sign
Professional Services Agreements up to a maximum contract amount of $75,000 for
environmental review services only. The costs for the service will be paid by the applicant in
accordance with a Professional Service Agreement reviewed and approved by the City
Attorney. The pre- approved consultant list will allow the expedited processing of the
professional services agreements and prevent unnecessary delays in the processing of major
projects. Planning staff anticipates that typical projects will cost $35,000 to $75,000 with
$15,000 to $30,000 of the cost being needed to cover the expense for traffic and /or parking
studies. Larger projects that require Environmental Impact Reports or Environmental Impact
Statements that exceed $75,000 in cost will still need City Council approval.
Once the pre- approved consultant list is established and the City has determined that a
project requires environmental review, staff would contact the consultants in order as they
appear on the list until the first available consultant is found. This process would continue as
necessary for each succeeding project. Upon selection of a consultant, a Professional
Services Agreement would be prepared and approved by the City Attorney and signed by the
City Manager. Planning Division staff would provide contract administration (monitor budget
compliance, billing, and applicant reimbursement payments) as well as coordinate and review
the consultant's work, prepare staff reports, and ensure that projects are properly noticed.
For quality control purposes, the list will be up -dated periodically to reflect changes in the
qualifications and availability of the consultants and therefore staff recommends that this be
accomplished along with the yearly contract/budget process.
The City's adopted fee schedule currently allows Planning and Building Safety Department to
contract for professional services for environmental review. Resolution No. 3617 establishes
that the applicant pays for the contract costs for environmental review services and a 20%
charge for staffs administration of the contract. Planning staff anticipates that 5 to 10
projects would benefit from this streamlined process on average per year.
The Planning and Building Safety Department recommends approval of the attached list of
consultants to provide environmental review services and authorization for the City Manager
to sign Professional Service Agreements for applicant reimbursed environmental review
services approved as to form by the City Attorney, in an amount not to exceed $75,000.
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Environmental /Planning Consultants
Date: 9/4/07
Craig Fajnor, Vice - President 8. Jay Ziff, Principal
Christopher Joseph & Associates PCR Services
11849 W. Olympic Boulevard, Suite 101 233 Wilshire Boulevard, Suite 130
Los Angeles, CA 90064 Santa Monica, CA 90401
Phone: (310) 473 -1600 Phone: (310) 451 -4488
Fax: (310) 473 -9336 Fax: (310) 451 -5279
2. Terri Vitar, Regional Vice - President 9, Steve Svete, AICP, President
EIP Associates (A Division of PBS&J) Rincon Consultants, Inc.
12301 Wilshire Boulevard, Suite 430 790 East Santa Clara Street
Los Angeles, CA 90025 Ventura, CA 93001
Phone: (310) 268 -8132 Phone: (805) 641 -1000
Fax: (310) 268 -8175 Fax: (805) 641 -1072
Laura Stetson, AICP, Principal
Hoale- Ireland
201 South Lake Avenue, Suite 308
Pasadena, CA 91101
Phone: (626) 356 -4460 Ext. 23
Fax: (626) 356 -4464
4. Tony Locacciato, AICP, Managing Principal Alternate Office:
Impact Sciences Impact Sciences
803 Camarillo Springs Road, Suite A 234 East Colorado Boulevard, Suite 205
Camarillo, CA 93012 Pasadena, CA 91101
Phone: (805) 437 -1900 Phone: (626) 564 -1500
Fax: (805) 437 -1901 Fax: (626) 564 -1501
Glenn LaJoie, AICP, Vice President, Planning /Environmental
Collette Morse, AICP, Senior Associate
RBF Consulting
14725 Alton Parkway
Irvine, CA 92618 -2027
Phone: (949) 472 -3505 or (949) 855 -3653
Fax: (949) 837 -4122
6. Eric Wilson Alternate Office: John Bridges, FAICP, Principal
EDAW EDAW
3780 Wilshire Boulevard, Suite 250 1420 Kettner Boulevard, Suite 500
Los Angeles, CA 90010 San Diego, CA 92101
Phone: (213) 368 -1304 Phone: (619) 233 -1454 Ext. 764 -6898
Fax: (213) 368 -1614 Fax: (619) 233 -0952
7. Gil Ruiz, Senior Project Manager Alternate Office:
P & D Consultants Gil Ruiz, Senior Project Manager
n
999 Town and Country Road, 4 c Floor P & D Consultants 515 South Flower Street, 8 "' Floor
Orange, CA 92868 Los Angeles, CA 90071
Phone: (714) 835 -4447 Phone: (213) 593 -8100
Fax: (714) 285 -0740 Fax: (213) 593 -8178
110
EL SEGUNDO CITY COUNCIL MEETING DATE: September 4, 2007
AGENDA ITEM STATEMENT AGENDA HEADING: Mayor Pro Tern Busch
AGENDA DESCRIPTION: Consideration and possible action regarding the appointment of an ad
hoc City Council subcommittee to review and make recommendations on City environmental
policies and programs. (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION: (1) Approve the appointment of an ad hoc City Council
subcommittee to be comprised of two Council Members to review City environmental policies
and programs and make recommendations to City Council on additional energy saving action
items; (2) Alternately, discuss and take other action related to this item.
BACKGROUND & DISCUSSION:
At the City Council's July 17, 2007 meeting, Mayor McDowell requested that the City go on
record in support of a safer, cleaner environment by asking the City Council to endorse the
U.S. Conference of Mayors' Climate Protection Agreement. El Segundo has a well -
documented track record in support of energy and resource conservation; including an energy
efficiency public - private partnership that retrofitted City facilities and which resulting in energy
savings of $1.9 million dollars.
Our July 17th action was an important first step or beginning point for putting global warming
solutions to work locally. At our last meeting, both Council Member Boulgarides and I
expressed interest in reviewing existing City policies and identifying additional action items that
have clear cost savings to the City in addition to global warming benefits. It is anticipated that
the subcommittee shall engage in several or more meetings and come back to the Council
with its findings and recommendations within six months.
ATTACHED SUPPORTING DOCUMENTS:
None.
FISCAL IMPACT: None
Operating Budget:
Amount Requested:
Account Number:
Project Phase:
Appropriation Required: _ Yes X No
ORIGINATED BY: DATE:
Eric Busch, Mayor Pro Tern
REVIEWED BY: DATE:
i
Jeff Stewart, i� ty Manager
14
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