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2010 MAY 18 - CC PACKETAGENDA EL SEGUNDO CITY COUNCIL COUNCIL CHAMBERS - 350 Main Street The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. Any writings or documents given to a majority of the City Council regarding any matter on this agenda that the City received after issuing the agenda packet, are available for public inspection in the City Clerk's office during normal business hours. Such Documents may also be posted on the City's website at www.elsegundo.org and additional copies will be available at the City Council meeting. 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, MAY 18, 2010 — 5:00 P.M. Next Resolution # 4651 Next Ordinance # 1442 5:00 P.M. SESSION CALL TO ORDER ROLL CALL PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. SPECIAL ORDER OF BUSINESS: CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et sue.) for the purposes of conferring with the City's Real Property Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators; as follows: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(a) -1- matter 1. City of El Segundo vs. City of Los Angeles, et. al LASC Case 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): -1- matters Represented Group: Police Support Services Employees Association (PSSEA), City Employees Association (CEA), Firefighters Association (FFA), Police Managers Association (PMA), Police Officers Association (POA), Supervisory and Professional Employees (S &P) Negotiators: Jack Wayt, Bob Hyland and Rich Kreisler CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0- matters SPECIAL MATTERS: - 0- matter 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. Any writings or documents given to a majority of the City Council regarding any matter on this agenda that the City received after issuing the agenda packet, are available for public inspection in the City Clerk's office during normal business hours. Such Documents may also be posted on the City's website at www.elsegundo.org and additional copies will be available at the City Council meeting. 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, MAY 18, 2010 - 7:00 P.M. Next Resolution # 4651 Next Ordinance # 1442 7:00 P.M. SESSION CALL TO ORDER INVOCATION — Bishop Craig Layne, Church of Jesus Christ of Latter Day Saints PLEDGE OF ALLEGIANCE — Council Member Suzanne Fuentes 3 03 PRESENTATIONS a. Proclamation announcing May 16 though 22 as National Public Works Week. ROLL CALL PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. Recommendation — Approval. B. SPECIAL ORDERS OF BUSINESS (PUBLIC HEARING) C. UNFINISHED BUSINESS D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS 1. Consideration and possible action regarding setting a date and time for interviewing candidates for Recreation and Parks Commission, Planning Commission, Library Board of Trustees, Senior Citizen Housing Corporation Board, Community Cable Advisory Committee and Environmental Committee. Recommendation — (1) Set a date for interviews of the candidates for 4:30 p.m., Tuesday, June 1, 2010, and announce appointees at the City Council's 7:00 p.m. June 1, 2010 meeting; (2) Alternatively, discuss and take other action related to this item. 4 U� 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. 2. Warrant Numbers 2577130 to 2577326 on Register No. 15 in the total amount of $803,524.44 and Wire Transfers from 4/23/10 through 5/06/10 in the total amount of $2,383,501.47. 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. 3. Regular City Council Meeting Minutes of May 4, 2010. Recommendation — Approval. 4. Consideration and possible action regarding an additional thirty (30) day provisional appointment extension for the position of Interim Recreation Superintendent. (Fiscal Impact: Savings of $106,574 in Fiscal Year 2009- 2010) Recommendation — (1) Approve the additional thirty (30) day provisional appointment extension for the position of Interim Recreation Superintendent; (2) Alternatively, discuss and take other action regarding this item 5. Consideration and possible action to adopt a resolution which authorizes the City Manager, or designee to apply for, receive and appropriate funds from the State of California for Capital Improvement Projects to be funded with Proposition 113 funding. (Fiscal Impact: $131,692.42 grant fund revenue) Recommendation — (1) Adopt the attached resolution authorizing the City Manager, or designee to apply for; receive, and appropriate Proposition 1B funds; (2) Authorize the Mayor to sign the Resolution; (3) Alternatively, discuss and take other action related to this item. U5 -, r 6. Consideration and possible action to approve a fee waiver request from the Center Street School PTA to hang a banner over Main Street from May 24 to June 7, 2010 for its Ice Cream Social. (Fiscal Impact: $178.00) Recommendation — (1) Approve the request from the Center Street School PTA regarding a fee waiver for hanging its banners; (2) Alternatively, discuss and take alternative action related to this item. 7. Consideration and possible action regarding authorizing the recording of the Notice of Completion and authorizing the City Manager to accept completion of work for 33 homes related to the City's Residential Sound Insulation Program's Group 36 (Project No. RSI 09 -11). (Final Contract Amount: $742,980) Recommendation — (1) Authorize the City Clerk to file the City's Planning and Building Safety Director's Notice of Completion in the County Recorder's Office; (2) Authorize the City Manager, or designee, to close out Project No. RSI 09 -11; (3) Alternatively discuss and take other action related to this item. CALL ITEMS FROM CONSENT AGENDA F. NEW BUSINESS 8. Consideration and possible action regarding the presentation of fiscal year 2009 -2010 Midyear Financial Review and approval of fiscal year 2010 -2011 Budget Calendar. (Fiscal Impact: None) Recommendation — (1) Receive and file FY 2009 -2010 Midyear Financial staff report; (2) Direct staff to proceed with Fiscal Year 2010 -2011 Budget Calendar; (3) Alternatively discuss and take other action related to this item 9. Consideration and possible action regarding the Funding Agreement extending financial assistance to the El Segundo Unified School District ( ESUSD) for the purpose of school facilities and programs. (Fiscal Impact: $250,000 annual contribution) Recommendation — (1) Direct staff as to funding for ESUSD in the Fiscal Year 2010 -2011 preliminary budget; (2) Alternatively, discuss and take other action related to this item. 6 06 10. Consideration and possible action regarding 1) Introduction of an Ordinance and Adoption of a Resolution of Intention to approve an Amendment to the contract between the Board of Administration of the California Public Employees' Retirement System (CaIPERS) and the El Segundo City Council providing Section 20903 (Two Years Additional Service Credit) for the City's Local Safety Members, with the exception of Department Heads and local Police members; 2) Adoption of a Resolution providing a designated Retirement Period for Section 20903, Two Years Additional Service Credit; 3) Certification of Compliance with Government Code Section 20903; and 4) Approval of a $1,000 payment to eligible employees entering into a Date - Certain Retirement Separation Agreement with the City. (Fiscal Impact: 1) Estimated increase in the City's PERS safety employer rate of 0.31% and an annual cost increase in FY 2012- 2013 of $52,000; 2) Salary savings based on the number of employees retiring during the designated retirement period, less the $1,000 payment for entering into a Date - Certain Retirement Separation Agreement.). Recommendation — (1) Introduce and waive the First Reading of the Ordinance (2) Adopt the Resolution of Intention; (3) Adopt the Resolution Providing a Designated Retirement Period; (4) Certify Compliance with Government Code Section 20903; (5) Approve a $1,000 payment to eligible employees entering into a Date - Certain Retirement Separation Agreement with the City; (6) Authorize the City Manager to execute the Retirement Separation Agreement, in a form approved by the City Attorney; (7) Alternatively, discuss and take other action related to this item. G. REPORTS — CITY MANAGER H. REPORTS — CITY ATTORNEY I. REPORTS — CITY CLERK J. REPORTS — CITY TREASURER K. REPORTS — CITY COUNCIL MEMBERS Council Member Fuentes — Council Member Brann — 7 U Council Member Jacobson - Mayor Pro Tern Fisher - Mayor Busch - PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total) Individuals who have receive value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. MEMORIALS - CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, gt se g.) for the purposes of conferring with the City's Real Property Negotiator, and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) ADJOURNMENT POSTED: DATE: TIME: ��-� Cl ' ✓� NAME: 2. M '41g, :1 rocla atton QCitp of V Otsunbo, Cdifornia WHEREAS, public works services provided in our community are an integral part of our citizen's everyday lives; and WHEREAS, the support of an understanding and informed citizenry is vital to the efficient operation of public works systems and programs such as water, sewers, streets, public buildings and solid waste collection; and WHEREAS, the health, safety and comfort of this community greatly depends on these facilities and services; and WHEREAS, the efficiency of the qualified and dedicated personnel who staff public works departments is materially influenced by the people's attitude and understanding of the work they perform. NOW THEREFORE, on this 18th day of May 2010, the Mayor and Members of the City Council of the City of El Segundo do hereby proclaim May 16 -22, 2010, as "National Public Works Week" and we call upon all citizens to acquaint themselves with the issues involved in providing our public works and to recognize the contributions which public works officials make every day to our health, safety, comfort, and quality of life. ��.i��il. /.�, / /�• � _ c ». ._ /�� GZ ��Y � �uirz /rr // �>�r. �t � «Y .a�� (_ jl,I' /Z!-LL ..i L(G >Id�Y ,-G <�92 % /Y./( >2ra �F, j✓,1�I7,C /f . C .(� »a(G�Y • / /.Ca'! / -vl >GP /(,C�72%1 09 EL SEGUNDO CITY COUNCIL MEETING DATE: May 18, 2010 AGENDA STATEMENT AGENDA HEADING: Committees, Commissions and Boards AGENDA DESCRIPTION: Consideration and possible action regarding setting a date and time for interviewing candidates for Recreation and Parks Commission, Planning Commission, Library Board of Trustees, Senior Citizen Housing Corporation Board, Community Cable Advisory Committee and Environmental Committee. RECOMMENDED COUNCIL ACTION: 1. Set a date for interviews of the candidates for 4:30 p.m., Tuesday, June 1, 2010, and announce appointees at the City Council's 7:00 p.m. June 1, 2010 meeting; 2. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: Amount Budgeted: Additional Appropriation: Account Number(s): ORIGINATED BY: Mishia Jennings, Executive Assistant REVIEWED BY: APPROVED BY: Jack Wayt, City Manager BACKGROUND AND DISCUSSION: The Recreation and Parks Commission, Planning Commission, Library Board of Trustees, Senior Citizen Housing Corporation Board, Community Cable Advisory Committee and Environmental Committee have vacant positions and positions with terms that will soon expire. Applications for each of these positions may be filed with the Council Office by interested candidates up until 5:00 p.m. May 28, 2010. Terms for committees, commissions and boards with positions either currently vacant or expiring soon are: • Recreation and Parks Commission — one position expires May 30, 2010 • Planning Commission — two positions; one immediate opening; second position expires June 30, 2010 • Library Board of Trustees — two positions expires June 30, 2010 • Senior Citizen Housing Corp — two positions; one immediate opening; second position expires June 30, 2010 • Community Cable Advisory Committee — two immediate openings • Environmental Committee — one position expires June 30, 2010 i� ul N_ W Q O O N W W LL 0 N Q J Q O Q CL a LL O ❑ z OLL ❑} Z m N O J w ¢ N JO w LL N Oz Q U 2 2 ¢ 3 r N O M N I \ a v N O a0 yr UM N N O GOO N O N O N N N N n u1 aO OO N I m r m O OIOM . 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E v o Z HLL m I I = O p U m r d Q J " ¢ O w 0 O O U O m Fz a w a U a M U) C) U o O - LL U LL a C U N c c of N C U M � m 5 U N U N U L 0 O a� 3-0 ,� « a N N O C N O o C d ` E aE 6- a a Q1m C U + C om�ur� U O C E U CL T N m N N aD « O y N T E « N y T d N N v= o a m E � � U E C N d a m m 1 W W.0 y m m N U C C C O m � E vi -O W Q d m N aci "Z:4- d c U m 0 Z U \ W O w U Z HLL m I I = Z a ll. ❑ i 1 2 CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 4/23/10 THROUGH 5/06/10 Date Payee Amount Description 5/5/2010 Health Comp 1,700.75 Weekly claims 5/10/2010 West Basin 1,462,200.04 H2O payment 4/28/2010 Employment Development 4,803.39 State Taxes 4/28/2010 IRS 251,846.68 Federal Taxes 4/28/2010 Employment Development 56,338.55 State Taxes 4/28/2010 UB 4,421.97 PARS payment 4/28/2010 Manufacturers & Traders 32,229.19 457 payment Vantagepoint 4/28/2010 Nationwide EFT 37,548.69 EFT 457 payment 4/28/2010 State of CA EFT 1,276.15 Child support payment 5/5/2010 Cal Pers 418,821.49 Health 5/5/2010 Cal Pers 92,521.35 Retirement 5/6/2010 Lane Donovan Golf Ptr 19,793.22 Payroll Transfer 2,383,501.47 DATE OF RATIFICATION: 5111/10 TOTAL PAYMENTS BY WIRE: 2,383,501.47 Certified as to the accuracy of the wire transfers by: City Trea urer Date ?Ub",Al� /0 Dire r F' ance Da e / ty Manag Date Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo. P: \City Treasurer \Wire Transfers \2010 \wire 2010 2nd Qtr \Wire Transfers 5 -06 T �2 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MAY 4, 2010 — 5:00 P.M. 5:00 P.M. SESSION CALL TO ORDER — Mayor Busch at 5:00 p.m. ROLL CALL Mayor Busch - Present — arrived at 5:10 p.m. Mayor Pro Tern Fisher - Present Council Member Brann - Present Council Member Fuentes - Present Council Member Jacobson - Present PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. SPECIAL ORDER OF BUSINESS: 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: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(a) -2- matter City of El Segundo vs. City of Los Angeles, et. al LASC Case No. BS094279 S &L Specialty Contracting, Inc. v. City of El Segundo, et al., LASC Case No. BS125520 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 MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 4, 2010 PAGE NO. 1 1 n J CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6): -1- matters Represented Group: Police Support Services Employees Association (PSSEA), City Employees Association (CEA), Firefighters Association (FFA), Police Managers Association (PMA), Police Officers Association (POA), Supervisory and Professional Employees (S &P) Negotiators: Jack Wayt, Bob Hyland and Rich Kreisler CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0- matters SPECIAL MATTERS: - 0- matter Council recessed at 6:34 p.m. MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 4, 2010 PAGE NO. 2 14 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MAY 4, 2010 - 7:00 P.M. 7:00 P.M. SESSION CALL TO ORDER — Mayor Busch at 7:00 p.m. INVOCATION — Pastor Rob McKenna, El Segundo Foursquare Church PLEDGE OF ALLEGIANCE — Mayor Pro Tern Bill Fisher PRESENTATIONS a. The Mayor and City Council present a proclamation congratulating the El Segundo Midget Cheer Squad being awarded the "Grand Champion." b. Council Member Jacobson presented a Proclamation to Fire Chief Kevin Smith declaring Saturday, May 22, 2010 as Super CPR Saturday. C. Mayor Pro Tern Fisher presented a Proclamation honoring Caroline Spear as 2010 El Segundo Senior Citizen of the Year. d. Council Member Brann presented a Proclamation to Police Chief Mitch Tavara, declaring Saturday, May 8, 2010, as El Segundo Public Safety Service Day and inviting the community to participate in the joint Open House. ROLL CALL Mayor Busch - Present Mayor Pro Tern Fisher - Present Council Member Brann - Present Council Member Fuentes - 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. Robin Funk, spoke regarding Item No. 9, the 2X2 Committee (City /School Affairs). Patricia Morales, Relay for Life, spoke regarding the upcoming event. MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 4, 2010 PAGE NO. 3 iJ Consideration and possible action, based upon request by public, to direct staff to analyze options regarding imposing a fee as a component of the City's existing ordinance regarding the regulation of businesses selling tobacco products. Jenny Davies, President of ROAD, spoke regarding imposing a fee as a component of the City's existing ordinance regarding the regulation of businesses selling tobacco products. Carol Almeda, Community Organizer, Asian American Drug Abuse Program, spoke regarding regulation of businesses selling tobacco products. Khristine Delgado, Community Organizer, spoke regarding regulation of businesses selling tobacco products. Council consensus to direct staff to report back on current efforts and the feasibility of adding fees to our licensing program. A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. MOTION by Council Member Brann, SECONDED by Council Member Jacobson to read all ordinances and resolutions on the agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 B. SPECIAL ORDERS OF BUSINESS (PUBLIC HEARING) Consideration and possible action regarding presentation on the status of the new El Segundo Beach Facility and Lifeguard Station. (Fiscal Impact: None) Stephanie Katsouleas gave a report and introduced Rubio Medina, with RRM, who gave presentation regarding the status of the project. Jack Kenton, resident, spoke regarding the project. Jim Boulgarides, resident, spoke in favor of the project. MOVED by Mayor Pro Tern Fisher, SECONDED by Council Member Brann, to close the Public Hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 Council consensus to receive and file the report on the status of the El Segundo Beach Facility and Lifeguard Station. C. UNFINISHED BUSINESS D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 4, 2010 PAGE NO. 4 16 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. 2. Approved Warrant Numbers 2576896 to 2577127 on Register No. 14 in the total amount of $961,615.01 and Wire Transfers from 4/9/10 through 4/22/10 in the total amount of $1,874,292.23. Authorized staff to release. Ratifed: Payroll and Employee Benefit checks; checks released early due to contracts or agreement; emergency disbursements and /or adjustments; and wire transfers. 3. Approved regular City Council Meeting Minutes of April 20, 2010. 4. Accepted the work as complete on the project for the installation of new lighting poles and conduits at Joslyn Center (339 Sheldon Street). Project No.: PW 09 -14 (Fiscal Impact: $11,910) Authorized the City Clerk to file a Notice of Completion in the County Recorder's Office. 5. Adopted Plans and Specifications for the Cleaning and Closed Circuit Televison (CCTV) inspection of sewer lines west of Sepulveda Boulevard, between El Segundo Boulevard and Imperial Avenue. Approved Capital Improvement Project. Project No.: PW 10 -02 (Fiscal Impact: $300,000) Authorized staff to advertise the project for receipt of construction bids. 6. Authorized the City Manager or designee, to review, approve or deny design and specifications (including electronic "e- sheet ") of proposed Mattel product(s) (e.g., El Segundo Police replica toys) pursuant to Section 6 of the attached License Agreement between the City and Mattel, Inc., dated June 26, 2007. 7. PULLED FOR DISCUSSION BY COUNCIL MEMBER JACOBSON 8. PULLED FOR DISCUSSIO BY COUNCIL MEMBER FUENTES MOTION by Council Member Brann, SECONDED by Council Member Jacobson to approve Consent Agenda Items 2, 3, 4, 5, and 6. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 CALL ITEMS FROM CONSENT AGENDA 7. Consideration and possible action to accept a cash contribution from Chevron Products Company ($1,000) and Teledyne Controls ($250), donated to the El Segundo Fire Department in support of Super CPR Saturday (Cardio- Pulmonary Resuscitation instruction) (Fiscal Impact: $1,250) MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 4, 2010 PAGE NO. 5 i { MOTION by Council Member Jacobson, SECONDED by Council Member Brann to accept a cash contribution from Chevron Products Company ($1,000) and Teledyne Controls ($250), donated to the El Segundo Fire Department in support of Super CPR Saturday (Cardio- Pulmonary Resuscitation instruction) (Fiscal Impact: $1,250) Authorized the City Manager to transfer the monies into the CPR General Fund account. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 8. Consideration and possible action to authorize the City Manager to execute two Professional Services Agreement amendments with Rosetti Associates, in a form approved by the City Attorney, for the Pool Alternatives Study in El Segundo. (Fiscal Impact: $24,500) MOTION by Mayor Pro Tern Fisher, SECONDED by Council Member Fuentes to authorize the City Manager to execute two Professional Services Agreement amendments with Rosetti Associates, in a form approved by the City Attorney, for the Pool Alternatives Study in El Segundo. (Fiscal Impact: $24,500) MOTION PASSED BY THE FOLLOWING VOICE VOTE: AYES: MAYOR BUSCH, MAYOR PRO TEM FISHER, COUNCIL MEMBERS FUENTES AND JACOBSON; NOES: COUNCIL MEMBER BRANN. 4/1 F. NEW BUSINESS G. REPORTS — CITY MANAGER — NONE H. REPORTS — CITY ATTORNEY — NONE REPORTS — CITY CLERK — NONE J. REPORTS — CITY TREASURER — Reported on his attendance at the California Municipal Treasurers Conference in Sacramento. Also reported that the Beach Clean Up is scheduled for June 5, 2010. K. REPORTS — CITY COUNCIL MEMBERS Council Member Fuentes — NONE Council Member Brann — Spoke on his trip to Phoenix, Arizona and his visit to the Firefighters Museum "Hall of Flame." 9. Consideration and possible action to approve the creation of a joint city - school committee, between the El Segundo Unified School District and the City of El Segundo, for the purpose of collaboration on issues of mutual interest and concern. (Fiscal Impact: None) MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 4, 2010 PAGE NO. 6 ffolll Council consensus that the concept of the existing City /School Affairs Subcommittee addresses the City's concerns regarding representation on the committee and the City should continue with existing standing committee with appropriate appointments. Council Member Jacobson — 10. Consideration and possible action requesting City Council to direct the City Attorney to analyze options and draft as appropriate documents for the City Council to reduce their salaries by 20 %. (Fiscal Impact: $7,061 Current Fiscal Year and - $10,800 Annually) MOTION by Council Member Jacobson, SECONDED by Mayor Pro Tern Fisher to approve directing the City Attorney to analyze options and draft as appropriate required documents for the City Council to reduce their salaries. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 Mayor Pro Tem Fisher — Spoke regarding the Richmond Street School and Raytheon Co. Water Conservation Program. Mayor Busch — 11. Consideration and possible action regarding the assignments of Council Members to various intergovernmental agencies, local agencies and subcommittees. MOTION by Mayor Busch, SECONDED by Mayor Pro Tern Fisher to approve and implement the following assignments: Agencies /Committees Delegate Aviation Safety & Noise Abatement Committee Carl Jacobson City Selection Committee Eric Busch Hyperion Citizens Forum Carl Jacobson Independent Cities Association Eric Busch Independent Cities Risk Mgmt. Authority Eric Busch League of California Cities Don Brann L.A. County Sanitation District 5 & So. Bay Cities District Eric Busch Municipal Area Express Transportation Carl Jacobson Reach Out Against Drugs Eric Busch Santa Monica Bay Restoration Project Don Brann Senior Citizen Housing Corporation Don Brann So. Bay Cities Council of Govt. Bill Fisher So. Bay Economic Development Partnership Don Brann South Bay Youth Project Don Brann So. Calif. Association of Govts. Don Brann West Basin Water Association Eric Busch Alternate Suzanne Fuentes Proxy as Needed Suzanne Fuentes N/A N/A Bill Fisher Carl Jacobson Suzanne Fuentes N/A Carl Jacobson Suzanne Fuentes Bill Fisher Bill Fisher Eric Busch N/A MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 4, 2010 PAGE NO. 7 i0 City /School Affairs Subcommittee (2X2) Technology Subcommittee Disaster Council Downtown Subcommittee Golf Committee Business Recruitment Task Force Water Conservation Subcommittee L.A. Co. West Vector Control District Delegates Eric Busch and Don Brann Bill Fisher and Carl Jacobson Eric Busch and Don Brann Bill Fisher Don Brann and Bill Fisher Don Brann and Bill Fisher Eric Busch and Suzanne Fuentes Carl Jacobson MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 Mayor Busch also spoke on the "Got Game" event at the Library, Hometown Fair, South Bay Energy Savings Center event, and the "Donate Life" organ donation event at Salt Creek Grill. 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. Jack Kemp, resident, spoke regarding the upcoming Career Aviation Day on May 15th at the Compton Airport. MEMORIALS — NONE CLOSED SESSION — NONE ADJOURNMENT AT 8:25 P.M. Cathy Domann, Deputy City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING MAY 4, 2010 PAGE NO. 8 16 0 EL SEGUNDO CITY COUNCIL MEETING DATE: May 18, 2010 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding an additional thirty (30) day provisional appointment extension for the position of Interim Recreation Superintendent. (Fiscal Impact: Savings of $106,574 in Fiscal Year 2009 -2010) RECOMMENDED COUNCIL ACTION: 1. Approve the additional thirty (30) day provisional appointment extension for the position of Interim Recreation Superintendent . 2. Alternatively, discuss and take other action regarding this item ATTACHED SUPPORTING DOCUMENTS: El Segundo Municipal Code, Section 1 -6 -13 FISCAL IMPACT: Budget Adjustment Required Amount Budgeted: $212,450 Additional Appropriation: N/A Account Number(s): 001 - 400 -5201 -4101 ORIGINATED BY: Bob Cummings, Recreation and Parks Director' REVIEWED BY: Bill Crowe, Assistant City anager APPROVED BY: Jack Wayt, City Manage) BACKGROUND AND DISCUSSION: On April 20, 2010, Council approved a thirty (30) day provisional appointment extension for the position of Interim Recreation Superintendent. The approved extension is through June 1, 2010. Recreation Supervisor Jeff Van Fossen has been performing the responsibilities of the position since the beginning of this fiscal year (October 1, 2009) at a cost savings of $94,734 to date. I would like to continue to utilize the provisional Interim Recreation Superintendent position through June 2010 until an eligibility list can be established for the position. The additional cost savings is $11,842 per month. In accordance with El Segundo Municipal Code Section 1- 6- 13(c), no person shall be employed by the City under provisional appointment for more than six (6) months in any fiscal year. The Code further states the provisional appointment may be extended for not more than thirty (30) days with Council approval. Therefore, I am requesting a thirty (30) day extension. al �1 1 -6 -13: APPOINTMENT IN CLASSIFIED SERVICE: A. Basis For Appointments: Appointments and promotions to vacant positions in the classified service shall be based on merit and fitness to be ascertained insofar as practicable by competitive examination. Appointments and promotions shall be made by the City Manager upon recommendation of the various department heads. B. Names Transmitted By Personnel Officer: When appointments and promotions are to be made to vacancies in the classified service, the names of the highest eligible persons willing to accept appointment shall be transmitted by the Personnel Officer to the department head in the order in which they appear on the list as follows: for one vacancy the names of three (3), for two (2) or secondary vacancies the names of five (5), for each additional or each subsequent vacancy, three (3) additional names shall be submitted and appointment shall be limited to any of these eligible persons. C. Provisional Appointment: In the absence of appropriate employment lists, a provisional appointment may be made of a person meeting the qualifications established for the classification. Any employment list shall be established within six (6) months, for any permanent position filled by provisional appointment. No person shall be employed by the City under provisional appointment for a total of more than six (6) months in any fiscal year except that the City Manager may, with approval of the City Council, extend the period of any provisional appointment for not more than thirty (30) days by any one action. D. Special Credit Not Allowed: No special credit shall be allowed in any examination or the establishment of any employment or promotional lists, for service rendered under a provisional appointment. E. Temporary Appointments: Appointments to temporary, emergency and seasonal positions may but need not be made from eligible lists and those appointed shall not be in the classified service. Appointments of this type shall include temporary employment for the replacement of employees on leave of absence other than military leave, or vacation, emergency appointments to meet emergencies which threaten life, property or the general welfare of the City, or for work seasonal in nature. F. Filling Vacancy During Suspension: During the period of suspension of any employee, or pending final action on proceedings to review the suspension, demotion or dismissal of an employee, the vacancy created may be filled only by temporary appointment. G. Transfer: With the approval of the City Manager, an employee may be transferred by the department head from one position to another position in the same class or a comparable class at the same salary level. If the transfer involves a change from one department in the classified service to another department in the classified service, the department heads and the employee involved must consent thereto before the action shall be considered effective. Transfers shall not serve to affect in any way the status, rights and privileges of an employee ' -► r" 4 under this Chapter. H. Reinstatement: The department head may, with the approval of the City Manager, reinstate to a vacant position any person who has resigned in good standing to a position in a class or equivalent class in which he had acquired status in the classified service; provided, that the reinstatement is accomplished within one year of the date of resignation. A reinstatement may, at the discretion of the department head, take precedence over any employment list except a re- employment list. (Ord. 586, 4 -10 -1962) 23' EL SEGUNDO CITY COUNCIL MEETING DATE: May 18, 2010 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to adopt a resolution which authorizes the City Manager, or designee to apply for, receive and appropriate funds from the State of California for Capital Improvement Projects to be funded with Proposition IB funding. Fiscal Impact: $131,692.42 grant fund revenue) RECOMMENDED COUNCIL ACTION: 1) Adopt the attached resolution authorizing the City Manager, or designee to apply for, receive, and appropriate Proposition 1B funds; (2) authorize the Mayor to sign the Resolution; (3) alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: Resolution for the Prop 1 B funding FISCAL IMPACT: Included in Adopted Budget Amount Budgeted: $ Additional Appropriation: $131,692.42 Account Number(s): ORIGINATED BY: Lauren Mahakian, Senior Administrative Analys REVIEWED BY: Stephanie Katsouleas, Dire of Public Wor APPROVED BY: Jack Wayt, City Manag BACKGROUND AND DISCUSSION: State Proposition 1B has earmarked a total $700 million for counties and cities to make safety improvements and repairs to local transportation facilities. El Segundo is eligible to receive $131,692.42 during this 2009/10 fiscal cycle. In order for the City to receive the funds, Council is required to approve their use via a resolution, and staff must submit evidence of that approval to the California Department of Finance (DOF) as part of its application process. Once the proof of approval and application are received, DOF will notify the State Controllers Office, who will then transmit the funds to the City. Per Prop 1 B requirements, the 2009/10 allocations must be expended by June 30, 2013. Lastly, the Proposition provides the City the flexibility to prioritize and determine which project(s) the funds will be allocated to award. 5 24 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE TO APPLY FOR, RECEIVE AND APPOPRIATE FUNDS FROM THE STATE OF CALFORNIA FOR CAPITAL IMPROVEMENT PROJECTS TO BE FUNDED WITH PROPOSITION 1B FUNDING The City Council of the city of El Segundo does resolve as follows SECTION 1: The City Council finds and declares as follows A. The City of El Segundo is required to appropriate the spending of funds received for normal and capital activities; B. The State of California appropriated Proposition 1B funding with its 2009/10 budget, and the amount allocated to the City of El Segundo is $131,692.42; C. The State of California's Department of Finance is requiring evidence of the adoption of a spending plan for the 2009/10 Proposition 1B funds that have been allocated to the City of El Segundo SECTION 2: The City Manager or designee is authorized to apply for funding from the State of California for Prop 1B funding SECTION 3: The City Manager, or designee, is authorized to execute any required documents to receive the funding for the purpose identified in this Resolution SECTION 4: The City Manager or designee is authorized to accept and spend the Prop 1 B funding identified in this Resolution for the purposes stated above SECTION 5: The City Council amends or supplements the City's Budget for Fiscal Years 2009 -2010 and to appropriate the funds identified by this Resolution to pay for activities proposed by the City in support of funding request form The City Manager, or designee, is authorized to implement the purpose of this section SECTION 6: This Resolution will become effective immediately upon adoption PASSED AND ADOPTED this 18th day of May 2010 Eric Busch Mayor STATE OF CALIFORNIA) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, hereby certify that the whole number of members of the City Council of the City is five, that the foregoing Resolution No was duly passed and adopted by said City Council, approved and signed by the Mayor and City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the day of , 2010, and the same was so passed and adopted by the following roll call vote AYES NOES ABSENT ABSTAIN ATTEST Cindy Mortesen City Clerk APPROVED AS TO FORM Mark D Hensley, City Attorney By Karl H Berger Assistant City Attorney EL SEGUNDO CITY COUNCIL MEETING DATE: May 18, 2010 AGENDA STATEMENT AGENDA HEADING: Consent AGENDA DESCRIPTION: Consideration and possible action to approve a fee waiver request from the Center Street School PTA to hang a banner over Main Street from May 24 to June 7, 2010 for its Ice Cream Social. (Fiscal Impact: $178.00) RECOMMENDED COUNCIL ACTION: 1. Approve the request from the Center Street School PTA regarding a fee waiver for hanging its banners; 2. Alternatively, discuss and take alternative action related to this item. ATTACHED SUPPORTING DOCUMENTS: Letter from the Center Street School PTA. FISCAL IMPACT: Fee Waiver of $178.00 Amount Budgeted: $0.00 Additional Appropriation: Account Number(s): ry� ORIGINATED BY: Maryam Jonas, Principal Civil Engineer ` U REVIEWED BY: Stephanie Katsouleas, Public Works Director APPROVED BY: Jack Wayt, City Mana BACKGROUND AND DISCUSSION: Ms. Gilda Dyckman, representing the Center Street School PTA, asked the City to waive the $178.00 permit fee the City charges to hang a banner across Main Street. The banner will be up from May 24 to June 7, 2010 promoting the PTA's annual Ice Cream Social being held at Center Street School on June 4, 2010. Proceeds from the Ice Cream Social will help fund field trip school buses for each kindergarten to 5`" grade class. This would cover approximately 30 classes taking two field trips per school year (2010- 2011). While the City does not have a formal banner policy regarding the types and locations of banners displayed, such requests are generally approved by the Public Works Department in accordance with El Segundo Municipal Code § 15- 18 -12. Persons or organizations placing such banners are required to pay the City $178.00 for hanging and removing each banner unless the City Council grants a fee waiver. Waiving this fee for the Center Street School PTA would be consistent with the City Council's past actions for local and nonprofit groups conducting events that benefit the community (e.g., organizations associated with the 15 events who received fee waivers at the December 15, 2009 City Council meeting). 47 May 10, 2010 El Segundo City Council, Dear City Council Board, On behalf of Center Street School PTA, we would like to request to the Council to waive the fee to hang a banner over Main Street. I have already made the reservation to hang the banner for the week of May 24 -June 07, 2010. Our banner is to advertise our annual Ice Cream Social at Center Street School on June 4th, from 5pm -8pm. This event is organized by our school's PTA and the proceeds raised from this event will help fund our field trip school buses for each Kinder -5th grade, approximately 30 classes taking 2 field trips per school year for next school year (2010- 2011). Our PTA continues through the school year to grant our school & teacher's wish list that the school district may not be able to pay for through their budget. This year were able to grant $39,000.00 to purchase smart boards in classrooms and purchase our school paper supply for the entire school year (approximate $10,000.00). These are just a few things that we do to support our children and campus at Center Street School. Thanking you in advance for your consideration in waiving this fee. Sincerely, Gilda Dyckman Vice President of Fundraising C/0 Center Street School 700 Center Street El Segundo, CA 90245 310- 615 -2676 310- 640 -9105 fax :M EL SEGUNDO CITY COUNCIL MEETING DATE: May 18, 2010 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding authorizing the recording of the Notice of Completion and authorizing the City Manager to accept completion of work for 33 homes related to the City's Residential Sound Insulation Program's Group 36 (Project No. RSI 09 -11). (Final Contract Amount: $742,980) RECOMMENDED COUNCIL ACTION: 1. Authorize the City Clerk to file the City's Planning and Building Safety Director's Notice of Completion in the County Recorder's Office; 2. Authorize the City Manager, or designee, to close out Project No. RSI 09 -11; and/or 3. Alternatively discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: List of homes included in Groups 36 Planning and Building Safety Director's Notice of Completion FISCAL IMPACT: Included in Adopted Budget Amounts Budgeted: $751,188 Additional Appropriation: N/A Account Number(s): 116 - 400 - 0000 -8960 ORIGINATED BY: James S. O'Neill, Program Manager REVIEWED BY: Greg Carpenter, Director of m and Building Safety APPROVED BY: Jack Wayt, City Manage BACKGROUND AND DISCUSSION: This project is part of the City's Residential Sound Insulation (RSI) Program financed by federal grants from the Federal Aviation Administration (FAA) and the settlement agreement with Los Angeles World Airports (LAWA). The RSI Program offers modifications to owners of qualifying residential property in the City of El Segundo that reduce interior sound levels of noise generated by air traffic from neighboring Los Angeles International Airport (LAX). At its meeting on June 2, 2009 the City Council awarded a construction contract to Professional Building Contractors, Inc. (PBC) for construction for 33 homes, commonly referred to as Group 36 of the RSI Program. The work has now been completed and the final contract amount is $755,138.37. City of El Segundo Exhibit A Group 36 Residential Sound Insulation Program RSI Project Number Address 36.01 416 E. Walnut Ave. 36.02 1213 E. Walnut Ave. 36.03 310 W. Walnut 36.04 1206 E. Acacia 36.05 212 E. Maple Ave. 36.06 214 E. Walnut Ave. 36.07 713 Hillcrest 36.08 727 Loma Vista (Front) 36.09 727 Loma Vista (Rear) 36.10 1022 E. Acacia Ave. 36.11 730 Redwood Ave. 36.12 606 W. Oak Ave 36.13 101 East Walnut Avenue 36.14 103 East Walnut Avenue 36.15 105 East Walnut Avenue 36.16 815 Main St., #101 36.17 815 Main St., #102 36.18 815 Main St., #103 36.19 815 Main St., #104 36.20 815 Main St., #105 36.21 815 Main St., #106 36.22 1815 Main St., #107 36.23 1815 Main St., #201 36.24 1815 Main St., #202 36.25 1815 Main St., #203 36.26 1815 Main St., #204 36.27 1815 Main St., #205 36.28 1815 Main St., #206 36.29 1815 Main St., #207 36.30 1815 Main St., #301 36.31 1815 Main St., #302 36.32 815 Main St., #303 36.33 815 Main St., #304 Recording Requested by and When Recorded Mail To: City Clerk, City Hall 350 Main Street El Segundo, CA 90245 NOTICE OF COMPLETION OF CONSTRUCTION PROJECT Project Name: Residential Sound Insulation Program — Group 36 Project No.: RSI 09 -11 Notice is hereby given pursuant to State of California Civil Code Section 3093 et seq that: The undersigned is an officer of the owner of interest stated below in the property hereinafter described. The project owner's name is: City of El Segundo The full addresses of the project are: attached as Exhibit A and incorporated by reference 4. The nature of the interest of the owner is: 5. A work of improvement on the property hereinafter described was field reviewed by City representatives on: see attached Exhibit A 6. The work done was: Residential Sound Insulation Program Improvements 7. On May 18, 2010, City Council of the City of El Segundo accepted the work of this contract as being complete and directed the recording of this Notice of Completion in the Office of the County Recorder. 8. The name of the Contractor for such work of improvement was: Professional Building Contractrors, Inc. The property on which said work of improvement was completed is in the City of El Segundo, County of Los Angeles, State of California, and is described as follows: Private Residence(s) listed in Exhibit A 10. The street address of said properties are: set forth in Exhibit A Dated: Greg Carpenter Planning and Building Safety Director VERIFICATION I, the undersigned, say: I am the Director of Planning and Building Safety of the City El Segundo, the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury the foregoing is true and correct. Executed on at El Segundo, California. Greg Carpenter Planning and Building Safety Director Notice of Completion J� EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: May 18, 2010 AGENDA HEADING: New Business Consideration and possible action regarding the presentation of fiscal year 2009 -2010 Midyear Financial Review and approval of fiscal year 2010 -2011 Budget Calendar. (Fiscal Impact: none) RECOMMENDED COUNCIL ACTION: (1) Receive and file FY 2009 -2010 Midyear Financial staff report 2) Direct staff to proceed with Fiscal Year 2010 -2011 Budget Calendar 3) Alternatively discuss and take other action related to this item ATTACHED SUPPORTING DOCUMENTS: 1.Proposed 2010 -2011 Budget Calendar FISCAL IMPACT: None Amount Budgeted: $0 Additional Appropriation: N/A Account Number(s): None ORIGINATED BY: Angelina Garcia, Fiscal Services Manage REVIEWED BY: Deborah Cullen, Director of inancea APPROVED BY: Jack Wayt, City Manage BACKGROUND AND DISCUSSION: Midyear Financial Review Fiscal Year 2009 -2010 Staff has reviewed all revenues and expenditures for midyear Fiscal Year 2009 -2010, with an emphasis on the General Fund, to determine if all sources and uses are on target with the originally adopted budget and to highlight any areas that may end the fiscal year significantly above or below budget. As we review the midyear results and begin the budgeting process for FY 2010 -2011, the City faces uncertain economic times and financial challenges that are unprecedented. The State budget deficit still may impact municipalities and further erode our ability to accurately forecast a balanced budget. E 32 There are general indicators that show the economy is beginning to experience a bit of recovery. However, the City's business and industry sectors are struggling to recover and the City is experiencing a loss in revenue in many of its major tax revenues. These revenue reductions are driven by the decrease in the price of natural gas and a sluggish economy generally. The biggest impact is in the "Other Taxes" category consisting of Sales and Use Tax, Transient Occupancy Tax, Utility Users Tax, Franchise Tax and Cognerated Tax. This category is currently projected to end the year $5.1 million below budget and $2.8 million below FY 2008- 2009 actuals. The City relies on "Other Taxes" to provide 54% of the General Fund revenues. These revenue sources are much more sensitive to the economic impacts on the business and industry sector and are much more difficult to forecast. Most South Bay cities rely on the stability of Property Tax for a majority of their tax revenue whereas E1 Segundo receives only 11% of the General Fund revenue from Property Tax. Detailed information is provided below, but for summary purposes staff is projecting that General Fund revenues will fall short of the adopted budget by $5,754,000 and will end the fiscal year $3,786,000 below FY 2008 -2009 actuals. To minimize the projected deficit staff has taken the following actions to reduce expenditures: • A retirement incentive was offered and 14 employees opted to retire. Many of those positions have remained vacant or are being filled with part-time employees with no benefits provided; • A hiring freeze has been instituted for all vacancies and only critical positions are being filled with the approval of the City Manager; • The Fire Department is running down staffing levels to reduce overtime; • Meetings have been held with the City's bargaining groups to discuss the current financial challenges and the prospect of employee concessions; • The City has requested a survey from Los Angles County Fire Department to assess the cost of providing fire service for the City; As a result of these measures, staff projects expenditures will come in $1,800,000 under the adopted budget, leaving the City with a deficit of $3,954,000. Currently the City has sufficient General Fund unreserved /undesignated funds available to accommodate the estimated shortfall, although the City's reserve will fall below 20% of the General Fund expenditures at yearend. 33 Staff has identified the following potential savings that can be implemented to help bridge the projected $3.9 million gap through year -end: Available Funds $ 320,000 $1,400,000 $ 87,000 $ 600,000 $ 520,000 $1,000,000 $ 600,000 $ 301,817 $ 72,000 $ 250,000 $ 5,150,817 Description of Funded Expenditure Capital Project savings- reduce transfer from General Fund Reverse annual funding for Equipment Replacement Funding Release ETRC Funding (Projects not started) Release funds from Economic Uncertainty Fund designated for FS #2 Release General Plan Maintenance budgeted amount FY 2009 -2010 Sale of Vacant Fire Station #2 Land Withdraw funds for Retire Health "pay go" OPEB up to annual premium costs Police Savings -- Equipment Replacment Fund deletions - Transfer funds to General Fund Reduction of Overtime savings Communication Center Workers Compensation Fund Total Identified Potential Savings General Fund Revenues The following is a list of major General Fund revenues and the performance of each source through midyear: Revenue Source Prior Year Midyear FY 2008 -2009 Current Year Midyear FY 1009 -2010 FY 2009- 1010 Adopted Budget % of Budget Received FY 2009- 2010 Year -end Estimate Variance Over/ (Under) FY 2009 -2010 Budget Business License 8,853,911 8,951,293 8,995,900 99.5% 9,150,000 154,100 Sales & Use Tax 4,953,733 3,913,330 9,315,000 42.0% 8,185,000 (1,130,000) Sales Tax in Lieu 1,733,955 1,418,599 3,742,900 37.9% 2,835,000 (907,900) Property Tax 3,383,363 3,437,980 6,350,000 54.1% 6,350,000 0 Transient Occupancy (TOT) 2,029,002 1,817,070 4,450,000 40.8% 3,850,000 (600,000) Charges for Services 1,978,352 1,682,132 3,562,700 47.2% 3,418,550 (144,150) Electric Utility Tax 1,852,067 1,483,073 3,750,000 39.5% 3,250,000 (500,000) Franchise Tax 184,748 175,802 3,700,000 4.8% 2,486,119 (1,213,881) Cogeneration Electric 867,461 662,896 2,100,000 31.6% 1,550,000 (550,000) License & Permits 835,514 626,517 1,191,100 52.6% 1,233,500 42,400 Gas Utility Tax 765,494 682,582 1,650,000 41.4% 1,500,000 (150,000) Interest on Investments 750,000 350,920 1,400,000 25.1% 1,000,000 (400,000) Other Revenues 1,919,564 1,946,145 4,391,150 44.3% 4,037,100 (354,050) Total General Fund Revenues Net of Transfers 30,107,163 27,148,339 54,598,750 49.7% 48,843,455 (5753,481) Transfers In 246,850 3,864,839 7,729,650 7,729,650 0 Total General Fund Revenues 30,354,013 31,013,178 62,328,400 56,574,919 (5,753,481) 34 Business License Tax is the City's second largest General Fund revenue source, accounting for 18% of total revenues. The majority of this revenue stream is collected in January and February, and based on the revenues received in the first 6 months of the fiscal year this category will exceed the adopted budget projection. This category is estimated to exceed budget at the end of the year by $154,100. Business License Tax FY 2009 Actual Revenue: $9,350,046 FY 2010 Adopted Budget: $8,995,900 FY 2010 Yearend Estimate: $9,150,000 Sales & Use Tax and Sales Tax in Lieu combined is the City's largest revenue source, accounting for 22% of the General Fund revenues. Sales and Use Tax receipts for the City's October through December sales (4t' quarter for sales tax reporting) were 21.8% lower than the same quarter last year. Actual sales activity was down 15.0% when reporting aberrations were factored out. The City has experienced a significant decline in business and industry due partly to negative adjustments to estimated taxes and overall decline in sales. Despite higher fuel prices, revenues dropped in service stations due to lower consumption and a decline in refinery capital expenditures. Taxable sales for all of Los Angeles County showed a decline to fourth quarter last year of 8.0% while the Southern California region as a whole was down 6.8 %. This is the second quarter in a row that the City's decline was higher than LA County and the Region. The current economy will continue to impact this revenue stream and our yearend estimate is based on ending the year below budget by $1.1 million. Sales Tax in Lieu is received in two payments each year (January and May) and is calculated as a percentage of the estimated Sales and Use Tax and is projected to end the year under budget by $907,900 and $633,000 below same period last year. Sales & Use Tax FY 2009 Actual Revenue: $9,286,806 FY 2010 Adopted Budget: $9,315,000 FY 2010 Yearend Estimate: $8,185,000 Sales Tax in Lieu FY 2009Actual Revenue: $3,467,911 FY 2010 Adopted Budget: $3,742,900 FY 2010 Yearend Estimate: $2,835,000 Property Tax is currently 1.6% or $54,617 more than the same period last year and is projected to end the year at budget. The City has experienced a net taxable value increase of 2.6% for the 2009 -2010 tax roll, which is better than the decrease experienced countywide at -0.6 %. The assessed value increase between 2008 -2009 and 2009 -2010 was $251 million. The growth attributed to the Assessor granted 2% CPI adjustment was $159 million, which accounted for 63% of all growth experienced in the City. 3 J Property Taxes FY 2009 Actual Revenue: $6,267,592 FY 2010 Adopted Budget: $6,350,000 FY 2010 Yearend Estimate: $6,350,000 Transient Occupancy Tax (TOT) is currently 10.45% or $211,932 below the same period last year, with 40.8% of budget received. This revenue stream continues to decline and is especially sensitive to the economy. Through the first quarter of FY 2009 -2010, TOT was showing a slight lag compared to the first quarter of FY 2008 -2009, and that trend has continued. Based on staff inquiries the decrease in this category is due to lower than projected occupancy levels driven by the reduction in tourism and business travel. Staff will continue to monitor and report any changes due to the economic conditions at third quarter, but is projecting this revenue source to fall short of the budgeted amount by $600,000. Transient Occupancy Tax FY 2009 Actual Revenue: $4,109,581 FY 2010 Adopted Budget: $4,450,000 FY 2010 Yearend Estimate: $3,850,000 Charges for Services includes Zoning and Planning fees, Plan Check fees, Plan Retention fees, Energy Plan Check fees, and Planning Service fees and have a combined budget of $3,562,700, The City has received $1,682,132 or 47.2% combined through midyear. Staff had factored in the continued slowdown in housing and construction in the budget estimate for FY 2009 -2010, and this revenue group is trending close to the budget estimate. At this time staff is estimating this revenue group to end the year slightly below budget by $144,150. Charges for Services FY 2009 Actual Revenue: $ 4,035,661 FY 2010 Adopted Budget: $ 3,562,700 FY 2010 Yearend Estimate: $ 3,418,550 Electric Utility User's Tax is estimated to come in lower than budget by $500,000 attributable to a reduction in consumption. As of March 31, 2010, this revenue source is at 39.5% of the Adopted Budget. Based on staff research, this tax is being impacted primarily by vacancies on commercial buildings and reductions in workforce, resulting in less electricity being used. Electric Utility User's Tax FY 2009 Actual Revenue: $3,595,795 FY 2010 Adopted Budget: $3,750,000 FY 2010 Yearend Estimate: $3,250,000 36 Franchise Tax is another one of the City's major revenue sources that has been impacted by the decrease in the price of natural gas. This year's annual payment from one of the top tax producers was $1.2 million lower than last year's payment primarily due to the decrease in the price of natural gas. This company accounts for over 50% of the total revenue received in this category. Franchise payments are made to the City once each year based on receipts through April 30`n Franchise Tax FY 2009 Actual Revenue: $3,577,958 FY 2010 Adopted Budget: $3,700,000 FY 2010 Yearend Estimate: $2,486,119 Cogenerated Electric Utility User's Tax is estimated to come in lower than budget by $550,000 attributable to a reduction in the Short Run Avoided Cost (SRAC), which is the cost that the local refinery pays Southern California Edison (SCE) for electricity purchased and used to value the Cogenerated production for the tax payment. This SRAC formula is tied to changes in natural gas prices, which have continued to be unstable although this revenue will end the year $236,680 higher than FY 2009 yearend. Cogenerated Electric Utility User's Tax FY 2009 Actual Revenue: $1,313,320 FY 2010 Adopted Budget: $2,100,000 FY 2010 Yearend Estimate: $1,550,000 License and Permits In the first quarter this revenue group recorded revenues of $626,517 or 52.6% of budget. At midyear this revenue stream is tracking closely to estimated budget and is anticipated to end the year slightly over budget. License and Permits FY 2009 Actual Revenue: $ 1,474,433 FY 2010 Adopted Budget: $ 1,191,100 FY 2010 Yearend Estimate: $ 1,233,500 Gas Utility Tax is currently at 42% of budget. The local power plant is reporting revenues each month and this revenue category is estimated to end the year $150,000 lower than budget but $382,428 higher than same period last year. This revenue source continues to be difficult to forecast based on the uncertainty of the local power plant and the fluctuation of the price of natural gas. Gas Utility Tax FY 2009 Actual Revenue: $1,117,572 FY 2010 Adopted Budget: $1,650,000 FY 2010 Yearend Estimate: $1,500,000 37 Interest on Investments has experienced a significant reduction due to the current economic crisis and the result of the Federal Reserve Bank's rate reduction in short-term and long -term interest rates. Currently, the City's portfolio is invested in Local Agency Investment Funds (LAIF) (15% of the portfolio value), money market accounts (28% of the portfolio value), negotiable CD's, (4% of the portfolio value), Federal Agency Issues (12% of the portfolio value), and miscellaneous securities (41% of the portfolio value). The average return on our miscellaneous securities through midyear was 4.8 %, and LAIF was 0.54 %, and with the total average return for entire portfolio being 3.1 %. LAIF is predicted to continue to return 0.54% or less through the end of the year we are estimating interest income will be lower that budget by $400,000. Interest on Investments FY 2009 Actual: $ 3,241,784 FY 2010 Adopted Budget: $ 1,400,000 FY 2010 Yearend Estimate: $ 1,000,000 Total Estimated Revenues Revenues in the Water and Sewer Fund are both on track to meet budget at yearend. The Golf Course Fund is currently showing 34% of budget received and continues to be impacted by the weak economy. General Fund Expenditures The General Fund expenditures through March 31, 2010 are illustrated in the following table: W Expended Budget Midyear Year-to- Department 09/10 09/10 Date Elected Officials $924,900 $404,541 43.74% Administrative Support 5,815,050 2,532,946 43.56% Police 16,325,720 8,160,762 49.99% Fire 15,706,900 7,411,103 47.18% Communications Center 2,337,050 1,055,728 45.17% Planning /Building Safety 3,577,850 1,171,478 32.74% Public Works 6,104,830 2,923,324 47.89% Recreation and Parks 4,610,400 2,105,254 45.66% Library 2,296,450 1,129,311 49.18% Nondepartment 4,128,250 2,700,768 65.42% Transfers to Other Funds 501,000 250,458 49.99% Total General Fund Expenditures $62,328,400 29,845,673 47.88% W The projected General Fund expenditures at yearend are estimated to come in under prior year actual and current year budget, as illustrated in the following table: The following is summary of General Fund expenditures by major categories: Elected Officials and Administrative Sunuort Services The Elected Officials category, which consists of the City Council, City Clerk and City Treasurer, has expenditures totaling $404,541 or 43.74% of budget. The Administrative Support category, which includes the City Manager's office, Finance and Human Resources, has expenditures totaling $2,532,946 or 43.56% of budget. This category currently has a total of 7 vacant positions to which these cost savings can be attributed. Public Safety The Police Department is projected to come in under budget at yearend, primarily due to cost savings on salaries for unfilled positions. This category currently has a total of 8 vacant positions to which some cost savings can be attributed. Midyear expenditures totaled $8,160,762 or 49.99% of budget. The Fire Department is projected to come in under budget at yearend as well, primarily due to cost savings resulting from running down from 19 to 17 or less whenever possible. Midyear expenditures totaled $7,411,103 or 47.18% of budget. This category currently has a total of 3 sworn and 1 civilian vacant positions to which these cost savings can be attributed. Additionally, Leave Replacement Overtime is down 55% and FLSA overtime is down 36% compared to the same period last year. 39 (Over) Projected FY 2008- Under $ (Over) Budget Year -End 2009 PY Under 09/10 Department 09/10 09/10 Actual Actual Budget Elected Officials $924,900 $843,032 $795,538 $(47,494) $81,868 Administrative Support 5,815,050 5,455,769 5,780,223 324,454 359,281 Police 16,325,720 16,063,739 16,890,996 827,257 261,981 Fire 15,706,900 14,142,601 15,248,127 1,105,526 1,564,299 Communications Center 2,337,050 2,078,115 1,847,657 (230,458) 258,935 Planning /Building Safety 3,577,850 3,436,888 2,796,444 (640,444) 140,962 Public Works 6,104,830 5,996,751 5,902,112 (94,639) 108,079 Recreation and Parks 4,610,400 4,453,470 4,580,155 126,685 156,930 Library 2,296,450 2,199,041 2,171,226 (27,815) 97,409 Nondepartment 4,128,250 5,329,460 5,412,979 83,519 (1.201.210) Transfers to Other Funds 501,000 501,000 1,251,807 750,807 0 Total General Fund Expenditures $62,328,400 $60,499,865 62,677,264 2,177,399 $1,828,535 The following is summary of General Fund expenditures by major categories: Elected Officials and Administrative Sunuort Services The Elected Officials category, which consists of the City Council, City Clerk and City Treasurer, has expenditures totaling $404,541 or 43.74% of budget. The Administrative Support category, which includes the City Manager's office, Finance and Human Resources, has expenditures totaling $2,532,946 or 43.56% of budget. This category currently has a total of 7 vacant positions to which these cost savings can be attributed. Public Safety The Police Department is projected to come in under budget at yearend, primarily due to cost savings on salaries for unfilled positions. This category currently has a total of 8 vacant positions to which some cost savings can be attributed. Midyear expenditures totaled $8,160,762 or 49.99% of budget. The Fire Department is projected to come in under budget at yearend as well, primarily due to cost savings resulting from running down from 19 to 17 or less whenever possible. Midyear expenditures totaled $7,411,103 or 47.18% of budget. This category currently has a total of 3 sworn and 1 civilian vacant positions to which these cost savings can be attributed. Additionally, Leave Replacement Overtime is down 55% and FLSA overtime is down 36% compared to the same period last year. 39 The Communications Center is projected to come in under budget at yearend. This category currently has a total of 2 vacant positions to which some cost savings can be attributed. Midyear expenditures totaled $1,055,728 or 45.17% of budget. Plannine and Building Safety Mid year expenditures totaled $1,171,478 or 32.74% of the budget. This department continues to maximize staffing efficiency with consultant resources; this, in turn enables them to more effectively control expenditures when necessary due to the uncertain economic conditions and fluctuation in the volume of permit applicants. This department is projected to come in under budget at year -end. This category currently has a total of 2 vacant positions to which some of these cost savings can be attributed. Yearend projections include $520,000 allocated to the General Plan Update. These funds can be released if the start date of this project is postponed to another fiscal year. 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. As of March 31, 2010, the department is slightly below budget with actual expenditures at $2,923,324 or 47.89% of budget. This category currently has a total of 5 vacant positions to which these cost savings can be attributed. Recreational, Cultural and Information Services The Recreation, Cultural and Information Services function includes the Recreation and Parks Department and the Library Department. For the first six months of the fiscal year, the Recreation and Parks department is slightly below budget with actual expenditures at $2,105,254 or 45.66% of budget. Currently, the Parks Division is $1,003,490 or 21.76% of budget and the Recreation Division is $1,101,765 or 23.89% of budget. This category currently has a total of 3 vacant positions to which these cost savings can be attributed. Library Services is on target with budget at $1,129,311 or 49.18% of expenditures realized though the first six months of the fiscal year. This category currently has a total of 1 vacant position to which these cost savings can be attributed. Also, the Library Department has reduced their hours /days of operations. Nondepartment Nondepartment expenditures are currently projected to come in over budget. This is primarily due to the exit pay for retirements and vacation/sick leave buyback that exceeded the budgeted amount. 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O O O O i O p 41- O O _0 N O 4-J 4-J 4-j C: -�--� . - Q _0 .E 4J m W 4- O _0 -0 ru L- ,--� O ---J ro cn � �- O ru 0 V _0 w V) `}'' O O O O N O N O N x, U- U- U- t �� yd� ti O •''�y� O� ys �d6d� 0202 y�� ij d6. 2 `Y6 s O� `LOJ J ZP y0 d' N . �oq uq .r EL SEGUNDO CITY COUNCIL MEETING DATE: May 18, 2010 AGENDA STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action regarding the Funding Agreement extending financial assistance to the El Segundo Unified School District ( ESUSD) for the purpose of school facilities and programs. (Fiscal Impact: 250,000 annual contribution) RECOMMENDED COUNCIL ACTION: (1) Direct staff as to funding for ESUSD in the Fiscal Year 2010 -2011 preliminary budget (2) Alternatively discuss and take other action related to this item ATTACHED SUPPORTING DOCUMENTS: 1.In -kind support contribution - Attachment A FISCAL IMPACT: None Amount Budgeted: $0 Additional Appropriation: N/A Account Number(s): None ORIGINATED BY: Angelina Garcia, Fiscal Services Manager REVIEWED BY: Deborah Cullen, Directorp€Anance APPROVED BY: Jack Wayt, City BACKGROUND AND DISCUSSION: The City entered into a Funding Agreement with the El Segundo Unified School District on June 19, 2001 to provide annual payments to the District beginning October 1, 2001 and for four years thereafter, in the amount of $250,000. The timetable for the City's commitment was for a period not to exceed five years and for an amount not to exceed $250,000 per year. Annual extensions to the agreement have been approved by Council in each fiscal year to date. In FY 2008 -2009 the District requested additional funding of $277,000 for the following: - $45,000 For crossing guards at Richmond Street, Center Street, El Segundo Middle School - $23,000 to cover the Consolidated Waste solid waste disposal contract - $59,000 to support custodial services and the transfer of materials between libraries - $150,000 to offset the cost of TruGreen for landscape maintenance. Of the requested amount, the City authorized the $250,000 annual payment and an additional one -time payment of $150,000 to offset the cost of TruGreen for landscape maintenance. Also, 43 the City entered into an agreement with ACMS for crossing guard services to be provided to ESUSD schools. The contract amount was not to exceed $100,000 for FY 2009. The City continued funding the crossing guard services in FY 2010. In addition to the cash contribution each year, the City has a long standing history of providing in -kind support from the Police Department, Recreation and Parks, Fire Department, Library and Public Works. The in -kind support costs to the City ranges from $427,000 to $800,000 per year. 44 45 ATTACHMENT A PAGE 1 CITY OF EL SEGUNDO ESUSD ANNUAL CONTRIBUTIONS (CASH AND IN -KIND) Total since FY 93 6,778,800 6,778,314 3,741,458 10,519,772 *Data taken from published budgets. * *This represents thel2 -month portion (July -June) in a period when the fiscal year changed to October- September. (A) Made up of the following: Annual contribution: $ 250,000 Additional contribution: 150,000 Paid in cash to school district for landscaping contract $ 400,000 n C) Total Fiscal Year Budget Actual In -Kind Cost to City 1992 -93 750,000 750,114 750,114 1993 -94 750,000 750,000 750,000 1994 -95 500,000 500,000 500,000 1995 -96 500,000 500,000 500,000 1996 -97 500,000 500,000 500,000 1997 -98 500,000 500,000 500,000 1998 -99 ** 250,000 250,000 250,000 1999 -00 250,000 250,000 250,000 2000 -01 250,000 250,000 250,000 2001 -02 250,000 250,000 250,000 2002 -03 250,000 250,000 250,000 2003 -04 228,800 228,200 228,200 2004 -05 250,000 250,000 429,710 679,710 2005 -06 250,000 250,000 574,844 824,844 2006 -07 250,000 250,000 577,444 827,444 2007 -08 250,000 250,000 580,044 830,044 2008 -09 400,000 400,000 774,016 1,174,016 2009 -10 400,000 400,000 805,400 1,205,400 2010- 11(estimated) 250,000 250,000 617,495 867,495 Total since FY 93 6,778,800 6,778,314 3,741,458 10,519,772 *Data taken from published budgets. * *This represents thel2 -month portion (July -June) in a period when the fiscal year changed to October- September. (A) Made up of the following: Annual contribution: $ 250,000 Additional contribution: 150,000 Paid in cash to school district for landscaping contract $ 400,000 n C) ATTACHMENT A PAGE 2 CITY OF EL SEGUNDO IN -KIND CONTRIBUTIONS TO SCHOOL DISTRICT ESTIMATED FISCAL YEAR 2004 -2005 Non Department Costs Drug Education (ROAD) 10,000 Police Department Costs 1 School Resource Officers 120,500 2 School Crossing Guards 21,500 100 hours of Donated time from Police Depart 8,900 45 Hours of Donated time from Fire Dept for football games 4,650 Fire Department Contribution 64 hours of donated time from Fire Dept for Inspections 1,850 28 Emergency Responses from Fire Dept. 3,750 Recreation and Parks Contribution Maintenance of Richmond St. school fields 10,800 Maintenance of Stevenson fields 2,400 Maintenance of Brett field 450 Maintenance of Softball field 950 Pool Maintenance and Personal Cost for Use 18,000 CDBG Contribution South Bay Youth Project on -site counselor 20 hours per week and supplies 16,000 Library Costs Administration of school libraries 188,460 Video taping all School Board Meetings school graduations, sporting events, and educational programs 14,800 Student Intern Program 1,000 Lighting and Sound Technician assistance for special school programs 1,500 Public Works Costs Fuel and maintenance of vehicles 4,200 Total in -kind contributions to School District 429,710 Cash contribution 250,000 Grand total contributions 679,710 41 r ATTACHMENT A PAGE 3 CITY OF EL SEGUNDO IN -KIND CONTRIBUTIONS TO SCHOOL DISTRICT FISCAL YEAR 2005 -2006 Drug Education (ROAD) 20,000 1 DARE Officer 120,500 100 overtime hours of donated time from Police Depart (football, prom, etc) 7,500 45 hours of donated straight time from Fire Dept for football games 3,600 50 hours of donated straight time from Fire Prevention Inspections (Annual Inspections, sprinklers, etc) 2,250 30 Fire Department emergency responses 4,200 60 hours donated time for Workability Program - Student Worker at Fire Dept. 2,100 Maintenance and preparation of Richmond St. School fields 35,108 Maintenance and preparation of Stevenson Fields 19,000 Maintenance and preparation of Brett Field 2,250 Maintenance and preparation of Softball Field 13,250 Fees waived for Aquatic Facility use at the Plunge 26,006 Fees waived for Athletic Facility use at Recreation Park 3,880 South Bay Youth Project on -site counselor at the High School for 20 hours per week (Funded by the General Fund) 27,500 South Bay Youth Project - 250 counseling hours (CDBG Funded) 16,000 Administration of school libraries 250,200 Video taping all School Board Meetings school graduations, sporting events, and educational programs 14,800 Student Intern Program (Community Cable) 1,000 Lighting and Sound Technician assistance for special school programs 1,500 Fuel and maintenance of City vehicles 4,200 Total in -kind contributions to School District 574,844 Cash contribution 250,000 Grand total contributions 824,844 1118 ATTACHMENT A PAGE 4 CITY OF EL SEGUNDO IN -KIND CONTRIBUTIONS TO SCHOOL DISTRICT FISCAL YEAR 2007 -2008 Drug Education (ROAD) 20,000 1 DARE Officer 120,500 100 overtime hours of donated time from Police Depart (football, prom, etc) 7,500 45 hours of donated straight time from Fire Dept for football games 3,600 50 hours of donated straight time from Fire Prevention Inspections (Annual Inspections, sprinklers, etc) 2,250 30 Fire Department emergency responses 4,200 60 hours donated time for Workability Program - Student Worker at Fire Dept. 2,100 Maintenance and preparation of Richmond St. School fields 35,108 Maintenance and preparation of Stevenson Fields 19,000 Maintenance and preparation of Brett Field 2,250 Maintenance and preparation of Softball Field 13,250 Fees waived for Aquatic Facility use at the Plunge 26,006 Fees waived for Athletic Facility use at Recreation Park 3,880 Campus El Segundo Athletic Fields (staffing and maintenance) 5,200 South Bay Youth Project on -site counselor at the High School for 20 hours per week (Funded by the General Fund) 27,500 South Bay Youth Project - 250 counseling hours (CDBG Funded) 16,000 Administration of school libraries 250,200 Video taping all School Board Meetings school graduations, sporting events, and educational programs 14,800 Student Intern Program (Community Cable) 1,000 Lighting and Sound Technician assistance for special school programs 1,500 Fuel and maintenance of City vehicles 4,200 Total in -kind contributions to School District 580,044 Cash contribution 250,000 Grand total contributions 830,044 49 CITY OF EL SEGUNDO IN -KIND & OTHER CONTRIBUTIONS TO SCHOOL DISTRICT "Projected" FISCAL YEAR 2008 -2009 Police Department: 39,361 Drug Education (ROAD) $ 25,000 100 overtime hours of donated time from Police Depart (football, prom, etc) 9,500 1 DARE Officer 159,400 Police Department Total 193,900 Fire Department 4,840 45 hours of donated straight time from Fire Dept for football games 3,200 50 hours of donated straight time from Fire Prevention 16,000 Inspections (Annual Inspections, sprinklers, etc) 1,800 56 Fire Department emergency responses 4,950 100 hours donated time for Workability Program - Student Worker at Fire Dept. 2,550 Fire Department Total 12,500 Recreation and Parks Maintenance, preparation, utilities at Richmond St. School fields 39,361 Maintenance and preparation of Recreation Park Stevenson Field 21,200 Maintenance and preparation of Recreation Park Brett Field 2,430 Maintenance and preparation of Recreation Park Softball Field 14,650 Fees waived for Aquatic Facility use at The Plunge 47,110 Fees waived for Athletic Facility use at Recreation Park (Tennis, Basketball) 4,840 Fees waived for Campus El Segundo Athletic Fields 36,400 South Bay Youth Project - 250 counseling hours (CDBG Funded) 16,000 South Bay Youth Project on -site counselor at the High School Agency membership fee & 20 hours per wk (funded by the General Fund) 33,025 Recreation and Parks Total 215,016 Library Administration of school libraries 230,300 Library Total 230,300 Community Cable Video taping all School Board Meetings school graduations, sporting events, and educational programs 14,800 Student Intern Program (Community Cable) 1,000 Lighting and Sound Technician assistance for special school programs 1,500 Community Cable Total 17,300 Fuel and maintenance of City vehicles 5,000 Crossing Guard Contract 100,000 Total in -kind contributions to School District 774,016 Cash contribution 400,000 Grand total contributions $ 1,174,016 Additional Funds Requested to cover the following costs: Crossing Guards at Richmond Street, Center Street & El Segundo Middle School $ 45,000 To cover Consolidated Waste solid waste disposal contract 23,000 To support custodial services & the transfer of materials between libraries 59,000 To offset the cost of TruGreen for landscape maintenance 150,000 $ 277,000 J� ATTACHMENT A PAGE 6 CITY OF EL SEGUNDO IN -KIND & OTHER CONTRIBUTIONS TO SCHOOL DISTRICT "Projected" FISCAL YEAR 2009 -10 Police Department: Drug Education (ROAD) $ 25,000 100 overtime hours of donated time from Police Depart (football, prom, etc) 10,000 I DARE Officer 159,400 Police Department Total 194,400 Fire Department 45 hours of donated straight time from Fire Dept for football games 3,520 50 hours of donated straight time from Fire Prevention Inspections (Annual Inspections, sprinklers, etc) 1,980 56 Fire Department emergency responses 5,445 100 hours donated time for Workability Program - Student Worker at Fire Dept. 2,805 Fire Department Total 13,750 Recreation and Parks Maintenance, preparation, utilities at Richmond St. School fields 39,750 Maintenance and preparation of Recreation Park Stevenson Field 21,550 Maintenance and preparation of Recreation Park Brett Field 2,500 Maintenance and preparation of Recreation Park Softball Field 14,900 Fees waived for Aquatic Facility use at The Plunge 53,650 Fees waived for Athletic Facility use at Recreation Park (Tennis, Basketball) 4,850 Fees waived for Campus El Segundo Athletic Fields 36,400 South Bay Youth Project - 250 counseling hours (CDBG Funded) 16,000 South Bay Youth Project on -site counselor at the High School 5,000 Agency membership fee & 20 hours per wk (funded by the General Fund) 33,050 Recreation and Parks Total 222,650 Library Administration of school libraries 272,300 Library Total 272,300 Community Cable Video taping all School Board Meetings school graduations, sporting events, and educational programs 14,800 Student Intern Program (Community Cable) 1,000 for special school programs 1,500 Community Cable Total 17,300 Fuel and maintenance of City vehicles 5,000 Crossing Guard Contract 80,000 Total in -kind contributions to School District 805,400 Cash contribution 400,000 Grand total contributions $ 1,205,400 51 CITY OF EL SEGUNDO IN -KIND & OTHER CONTRIBUTIONS TO SCHOOL DISTRICT "Projected" FISCAL YEAR 2010 -11 Police Department: Drug Education (ROAD) $ 25,000 Staffing for PTA Run for Education 3,700 Staffing for Homecoming Parade 5,500 Staffing for 2011 Every 15 Minutes program 6,400 100 overtime hours for events and games(Football, Baseball, Basketball, Prom, etc) 10,000 I School Resource Officer 164,100 Police Department Total 214,700 Fire Department 45 hours of donated straight time from Fire Dept for football games 2,270 50 hours of donated straight time from Fire Prevention Inspections (Annual Inspections, sprinklers, etc) 2,553 52 Fire Department emergency responses 2,533 100 hours donated time for Workability Program - Student Worker at Fire Dept. 3,591 Fire Department Total 10,947 Recreation and Parks 5,000 Maintenance, preparation, utilities at Richmond St. School fields 39,750 Maintenance and preparation of Recreation Park Stevenson Field 21,550 Maintenance and preparation of Recreation Park Brett Field 2,500 Maintenance and preparation of Recreation Park Softball Field 14,900 Fees waived for Aquatic Facility use at The Plunge 53,650 Fees waived for Athletic Facility use at Recreation Park (Tennis, Basketball) 4,850 Fees waived for Campus El Segundo Athletic Fields 36,400 South Bay Youth Project - 250 counseling hours (CDBG Funded) 16,000 South Bay Youth Project on -site counselor at the High School Agency membership fee & 20 hours per wk (funded by the General Fund) 33,050 Recreation and Parks Total 229,330 Library 8 Part-time Library Assistants - Reduced total hours by 50% from FY 2009/10 98,960 Duties: Check library materials out to students, assist in locating library items, answer reference questions, conduct story time, assist students and teachers 15,096 with homework assignments, gather special books for class projects. 1,000 1 Librarian 1I (.25 FTE)- -Also supervises Youth Services at Main Library. 22,662 Sindee Pickens 17,596 Duties: Supervises the activities of the library assistants, orders books, liason 5,000 with school administration, and conducts performance evaluations. 617,495 Information Services staff technical support 5,000 Books and audio - visual material 3,200 Misc. supplies 500 Computer and technical supplies 1,500 OCLC cataloging service (Vendor contract with City) 2,900 Baker & Taylor online book ordering (Vendor contract with City) 5,200 Library Total 139,922 Community Cable Video taping all School Board Meetings school graduations, sporting events, and educational programs 15,096 Student Intern Program (Community Cable) 1,000 for special school programs 1,500 Community Cable Total 17,596 Fuel and maintenance of City vehicles 5,000 Total in -kind contributions to School District 617,495 Cash contribution 250,000 Grand total contributions $ 8672495 5-) 4. EL SEGUNDO CITY COUNCIL MEETING DATE: May 18, 2010 AGENDA STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action regarding 1) Introduction of an Ordinance and Adoption of a Resolution of Intention to approve an Amendment to the contract between the Board of Administration of the California Public Employees' Retirement System (Ca1PERS) and the El Segundo City Council providing Section 20903 (Two Years Additional Service Credit) for the City's Local Safety Members, with the exception of Department Heads and local Police members; 2) Adoption of a Resolution providing a designated Retirement Period for Section 20903, Two Years Additional Service Credit; 3) Certification of Compliance with Government Code Section 20903; and 4) Approval of a $1,000 payment to eligible employees entering into a Date - Certain Retirement Separation Agreement with the City. (Fiscal Impact: 1) Estimated increase in the City's PERS safety employer rate of 0.31% and an annual cost increase in FY 2012- 2013 of $52,000; 2) Salary savings based on the number of employees retiring during the designated retirement period, less the $1,000 payment for entering into a Date - Certain Retirement Separation Agreement.). RECOMMENDED COUNCIL ACTION: 1. Introduce and waive the First Reading of the Ordinance. 2. Adopt the Resolution of Intention. 3. Adopt the Resolution Providing a Designated Retirement Period 4. Certify Compliance with Government Code Section 20903 5. Approve a $1,000 payment to eligible employees entering into a Date - Certain Retirement Separation Agreement with the City. 6. Authorize the City Manager to execute the Retirement Separation Agreement, in a form approved by the City Attorney. 7. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Ordinance 2. Ca1PERS Exhibit — Amendment to Contract 3. Resolution of Intention 4. Resolution Providing Designated Retirement Period (includes Exhibit A) 5. Ca1PERS Document — Certification of Compliance with Government Code Section 20903 FISCAL IMPACT: 1) Estimated increase in the City's PERS Safety Employer Rate of .31 and an annual cost increase in FY 2012 -2013 of $52,000; 2) Salary savings based on the number of employees retiring during the designated retirement period, less the $1,000 payment for entering into a Date - Certain Retirement Separation Agreement. Amount Budgeted: Additional Appropriation: Account Number(s): 1 ORIGINATED BY: Martha A. Dij ra, Human Resources Manager REVIEWED BY: Bob Hyland, Director of Hum n Resources 10 APPROVED BY: Jack Wayt, City Managep 53 BACKGROUND AND DISCUSSION: As part of the March 19, 2009 Strategic Planning Session, staff presented Council with a number of potential budget reduction options, among them, Early Retirement Incentives. An Early Retirement Incentive Program was offered to local miscellaneous employees between October 5, 2009 and January 15, 2010. This Agenda Item requests Council approval of an Early Retirement Incentive Program for local safety members, excluding Department Heads and local Police members. This Program would provide eligible employees: 1) Two Years of additional PERS Service Credit; and 2) a payment of $1,000 to eligible employees entering into a Date - Certain Retirement Separation Agreement, in order that the resulting salary savings can be expeditiously factored into the Fiscal Year 2010 -2011 Budget. Section 20903 (Two Years Additional Service Credit) Staff initiated the contract amendment process on February 10, 2010 by requesting that Ca1PERS provide the City with the documents required to add Section 20903 to the contract between the City Council and the Ca1PERS Board of Administration. Eligibility to receive the two years of Additional Service Credit requires the following: • The employee is a local safety member of Ca1PERS • The employee will have reached age 50 and have at least five years of Ca1PERS Service at the time of their retirement during the retirement period designated by the City. • Department heads and local police members are not eligible to receive the two years of additional service credit. The employee benefits because the additional two years of service credit adds value to his/her retirement annuity. The employer benefits because the City achieves cost savings through resulting position vacancies, opportunity for workforce restructuring and /or lower compensated new employees filling certain designated vacant positions. Approximately 16 employees are eligible to receive this benefit. To date, staff is aware of 5 individuals with some level of interest in obtaining the two years of additional service credit and retiring. Ca1PERS requires, in accordance with Government Code Section 20903 and the contract between CalPERS and the City, that the City Council certify that: 1. Because of an impending curtailment of, or change in the manner of performing service, the best interests of the agency will be served by granting such additional service credit. 2. The added cost to the retirement fund for all eligible employees who retire during the designated window period will be included in the contracting agency's employer contribution rate for the fiscal year that begins two years after the end of the designated period. 3. It has elected to become subject to Section 20903 because of impending mandatory transfers, demotions, and layoffs that constitute at least one percent of the job classification, department or organizational unit, as designated by the governing body, resulting from the curtailment of, or change in the manner of performing its services. 5 4. Its intention at the time Section 20903 becomes operative is to keep all vacancies created by retirements under this section or at least one vacancy in any position in any department or other organizational unit permanently unfilled, thereby resulting in an overall reduction in the workforce of such department or organizational unit. Government Code Section 7507 requires that the future annual costs of the proposed contract amendment be made public at a public meeting at least two weeks prior to the Second Reading and adoption of the required Ordinance. Government Code Section 20741 requires that there must be a twenty -day period between the adoption of the Resolution of Intention and the Second Reading and Adoption of the Ordinance. Thus, if the Resolution of Intention is adopted at Council's May 18, 2010 meeting, the Ordinance will be agendized for Final Reading and Adoption at the June 15, 2010 Council Meeting. CalPERS requires that the retirement period within which this benefit may be provided, is no less than ninety (90) days and no more than one hundred eighty (180) days in length. The retirement period designated by the City will commence on September 1, 2010 and end on December 31, 2010. Fiscal Impact The cost of the Two Years of Additional Service Credit is amortized by Ca1PERS over a twenty year period and will be included in the City's Safety Employer Contribution Rate, commencing with the Fiscal Year starting two years after the end of the designated Retirement Period, 2012- 2013. Staff has calculated the fiscal impact on the assumption that all five of those employees expressing an interest in the benefit will retire during the designated Retirement Period. Staff's fiscal impact calculations were based on utilizing PERS Document CON3 -PA, "Procedures for Calculation of Estimated Employer Cost" and were reviewed and certified by Actuary John Bartel of Bartel Associates, LLP. Mr. Bartel has provided the City with actuarial analyses and valuation reports for a number of years. Although it is considered highly unlikely that all 16 employees will retire within the designated Retirement Period, the following fiscal impact figures reflect that scenario: 1) Estimated Present Value of Additional Employer Contributions $1,894,968 2) Estimated Annual Employer Cost Amortized over 20 Years $ 947,484 3) Estimated Employer Rate Increase, 0.862% to 27.919 27.919% A much more likely scenario is that 5 employees would retire, resulting in the costing shown below: 1) Estimated Present Value of Additional Employer Contributions $685,000 2) Estimated Annual Employer Cost Amortized over 20 Years $ 52,000 3) Estimated Employer Rate Increase, 0.31% to 27.367 27.367% Assuming that all five would retire and some of the positions would remain vacant through the remainder of the year or permanently, the cost savings to the City could range from $263,660 to $583,618 for FY 2010 -2011. Those employees entering into a Date - Certain Retirement Separation Agreement, by August 31, 2010 will receive a one -time payment of $1,000. Further, two additional actions are required prior to the Second Reading and Adoption of the Ordinance, which will occur at Council's meeting on June 15, 2010 contingent upon the timing of Ca1PERS providing the City with the original documents necessary to finalize the Amendment of the City's contract with Ca1PERS. Resolution Providing for a Designated Retirement Period for Section 20903, Two Years Additional Service Credit Adoption of the Resolution formally designates both the job classifications eligible for this benefit, as well as the Retirement Period during which the retirement must occur. CaIPERS requires that the Designated Retirement Period be no less than ninety (90) days, no more than one hundred eighty (180) days in length. The Designated Retirement Period will be from September 1, 2010 to December 31, 2010. This timeframe will allow eligible employees to have ample time to 1) review information related to the Early Retirement Program, 2) obtain retirement allowance estimates from Ca1PERS, and 3) complete and submit their Retirement Application Package. Certification of Compliance with Government Code Section 20903 Ca1PERS requires, in accordance with Government Code Section 20903, and the contract between the Ca1PERS Board of Administration and the City Council, that the Council certify that: "Because of an impending curtailment of, or change in the manner of performing service, the best interests of the agency will be served by granting such additional service credit. The added cost to the retirement fund for all eligible employees who retire during the designated window period will be included in the contracting agency's employer contribution rate for the fiscal year that begins two years after the end of the designated period. It has elected to become subject to Section 20903 because of impending mandatory transfers, demotions, and layoff that constitute at least 1 percent of the job classification, department, or organizational unit, as designated by the governing body, resulting from the curtailment of, or change in the manner of performing, its services. Its intention at the time Section 20903 becomes operative is to keep all vacancies created by retirements under this section or at least one vacancy in any position in any department or other organizational unit permanently unfilled, thereby resulting in an overall reduction in the workforce of such department or organizational unit." 5 �Ci ORDINANCE NO. AN ORDINANCE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. The City Council of the City of El Segundo does ordain as follows: SECTION 1: The attached Exhibit A, an amendment to the contract between the City Council of the City of El Segundo and the Board of Administration, California Public Employees' Retirement System, is approved and the Mayor is authorized to execute the amendment. SECTION 2: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 3: This Ordinance will become effective on the thirty -first (31s) day following its passage and adoption. PASSED AND ADOPTED this day of , 2010. Eric K. Busch, Mayor 57 ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. was duly introduced by said City Council at a regular meeting held on the day of , 2010, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of , 2010, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Cindy Mortesen, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, City Attorney as Karl H. Berger, Assistant City Attorney 58 Ca1PERS California Public Employees' Retirement System EXHIBIT AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of El Segundo The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective October 1, 1943, and witnessed August 25, 1943, and as amended effective November 1, 1947, August 1, 1949, July 1, 1950, November 1, 1955, September 1, 1958, March 9, 1959, November 7, 1964, October 19, 1968, December 11, 1971, July 20, 1974, July 19, 1975, January 3, 1976, July 16, 1977, June 3, 1978, February 6, 1982, April 3, 1982, January 1, 1992, June 27, 1992, May 15, 1993, January 8, 1994, January 19, 1996, April 4, 1997, October 13, 1997, October 7, 2000, December 18, 2000, May 19, 2001, July 2, 2004, April 12, 2008, May 9, 2009 and October 3, 2009 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective October 3, 2009, and hereby replaced by the following paragraphs numbered 1 through 14 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members, age 55 for local fire members and age 50 for local police members. 59 2. Public Agency shall participate in the Public Employees' Retirement System from and after October 1, 1943 making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. 3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non - CaIPERS retirement program. (b) Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than existing retirement benefits, provisions or formulas. (c) Public Agency's agreement with a third party other than CaIPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees' Retirement Law. (d) Public Agency's election to file for bankruptcy under Chapter 9 (commencing with section 901) of Title 11 of the United States Bankruptcy Code and /or Public Agency's election to reject this Contract with the CaIPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration. by (f) The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. (g) Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 4. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Local Fire Fighters (herein referred to as local safety members); b. Local Police Officers (herein referred to as local safety members); C. Employees other than local safety members (herein referred to as local miscellaneous members). 5. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: NO ADDITIONAL EXCLUSIONS 6. Prior to January 1, 1975, those members who were hired by Public Agency on a temporary and /or seasonal basis not to exceed 6 months were excluded from PERS membership by contract. Government Code Section 20336 superseded this contract provision by providing that any such temporary and /or seasonal employees are excluded from PERS membership subsequent to January 1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305 effective July 1, 1994. 7. The percentage of final compensation to be provided for each year of credited prior and current service for local miscellaneous members shall be determined in accordance with Section 21354 of said Retirement Law, subject to the reduction provided therein for service on and after July 1, 1956, the effective date of Social Security coverage, for members whose service has been included in Federal Social Security (2% at age 55 Full and Modified). 8. The percentage of final compensation to be provided for each year of credited prior and current service as a local fire member shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full and Modified). 61 9. The percentage of final compensation to be provided for each year of credited prior and current service as a local police member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 10. Public Agency elected and elects to be subject to the following optional provisions: a. Sections 21624 and 21626 (Post- Retirement Survivor Allowance) for local safety members only. b. Section 21571 (Basic Level of 1959 Survivor Benefits) for local miscellaneous members only. C. Section 21222.1 (One -Time 5% Increase - 1970). Legislation repealed said Section effective January 1, 1980. d. Section 21222.2 (One -Time 5% Increase - 1971). Legislation repealed said Section effective January 1, 1980. e. Section 21024 (Military Service Credit as Public Service). f. Section 20042 (One -Year Final Compensation). g. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety members only. h. Section 21548 (Pre- Retirement Option 2W Death Benefit). Section 20903 (Two Years Additional Service Credit). 11. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System. 12. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local safety members. b. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. C. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 13. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 14. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the day of , BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF EL SEGUNDO BY BY LORI MCGARTLAND, CHIEF PRESIDING OFFICER EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk AMENDMENT ER# 39 PERS- CON -702A 63 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF EL SEGUNDO WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: To provide Section 20903 (Two Years Additional Service Credit) for local safety members. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. By: Date adopted and approved Presiding Officer Title (Amendment) CON -302 (Rev. 4/96) 6 z t RESOLUTION NO. A RESOLUTION PROVIDING A DESIGNATED RETIREMENT PERIOD FOR SECTION 20903, TWO YEARS ADDITIONAL SERVICE CREDIT The City Council of the City of El Segundo does resolve as follows: Section 1: The City Council of the City of El Segundo is a contracting public agency of the Public Employees' Retirement System. Section 2: The Public Agency desires to provide a Designated Retirement Period for Section 20903, Two Years Additional Service Credit, based on the contract amendment in said contract which provides for Section 20903, Two Years Additional Service Credit, for eligible members. Section 3: Eligible members will be the City's local safety members, with the exception of department directors and local police members, as depicted on the attached Exhibit A. Section 4: The Designated Retirement Period shall be from September 1, 2010 through December 31, 2010. Section 5: The City Clerk is directed to certify the Passage and Adoption of this Resolution, enter same in the Book of Original Resolutions, and make a Minute of its adoption in the City's records and in the Minutes of the meeting when it was adopted. Section 6: The Resolution will become effective immediately upon adoption, and will remain effective unless repealed or superseded. PASSED AND ADOPTED this 18th day of May , 2010. Eric K. Busch, Mayor 65 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Resolution No. was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 18th day of May, 2010, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: NOT PARTICIPATING: WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of , 2010. Cindy Mortesen, City Clerk of the City of El Segundo, California (SEAL) APPROVED AS TO FORM: Mark D. Hensley, City Attorney By: Karl H. Berger Assistant City Attorney 6 I 0 EXHIBIT A TITLE Battalion Chief Deputy Fire Chief Environmental Safety Manager Fire Captain Fire Engineer Firefighter 61 CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229 -2709 (888) CalPERS (225 -7377) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 20903 In accordance with Government Code Section 20903 and the contract between the Public Employees' Retirement System, the City Council of the City of El Segundo hereby certifies that: Because of an impending curtailment of, or change in the manner of performing service, the best interests of the agency will be served by granting such additional service credit. 2. The added cost to the retirement fund for all eligible employees who retire during the designated window period will be included in the contracting agency's employer contribution rate for the fiscal year that begins two years after the end of the designated period. 3. It has elected to become subject to Section 20903 because of impending mandatory transfers, demotions, and layoffs that constitute at least 1 percent of the job classification, department or organizational unit, as designated by the governing body, resulting from the curtailment of, or change in the manner of performing, its services. 4. Its intention at the time Section 20903 becomes operative is to keep all vacancies created by retirements under this section or at least one vacancy in any position in any department or other organizational unit permanently unfilled thereby resulting in an overall reduction in the work force of such department or organizational unit. THEREFORE, the City Council of the City of El Segundo hereby elects to provide the benefits of Government Code Section 20903 to all eligible members who retire within the designated period, through CITY COUNCIL OF THE CITY OF EL SEGUNDO By: Attest: Clerk/Secretary Date Presiding Officer 2yr certification -PA (Rev. 4/04) t1 rocla attoon Cttp of el sus . editorma WHEREAS, Cancer is a group of diseases characterized by uncontrolled growth and spread of abnormal cells which, if not controlled, can result in premature death; and WHEREAS, cancer is predicted to strike one out every three Americans sometime in our lifetime with an estimated 133,855 new cases of diagnosed cancer in California in 2010, the equivalent to 15 new case every hour of every day; and WHEREAS, approximately 54,655 people will die of cancer in California in 2010 -about 149 people each day; and WHEREAS, The American Cancer Society is the nation's largest and most respected voluntary health organization since 1913 and has funded research which has contributed to every known method for detecting cancer and techniques for treating cancer: thereby increasing the cancer survival rates from 10% to over 63 %; and WHEREAS, The American Cancer Society is a voluntary community -based coalition of local citizens dedicated to eliminating cancer as a major health problem through financial support and education awareness; and WHEREAS, the El Segundo RELAY FOR LIFE event financially benefits The American Cancer Society's research and support programs, and educationally benefits our local citizens; and WHEREAS, the El Segundo RELAY FOR LIFE is a community event that allows all participants an opportunity to network with businesses, associates, family, and friends, with the same goal of making'a- difference in the battle against cancer. WHEREAS, in recognition of the El Segundo RELAY FOR LIFE event, American Cancer Society volunteers will "Paint Our Town Purple" with ribbons, balloons, streamers, and flyers from May 30, 2010 to June 6, 2010. NOW, THEREFORE, on this 18`h day of May, 2010, the Mayor and Members of the City Council of the City of El Segundo, California, hereby proclaim the month of June RELAY FOR LIFE month. We further urge all citizens to recognize and participate in this anti cancer campaign being held in our community to show support to those individuals living with cancer, and honor those individuals that have lost their lives to the dreaded disease of cancer. . {///( "(!11,1'1 � / )(' c. /�/�'�!ll .. / / /(I �/ (Jf �Y �(• '(L!9!/!(e ,.//�(!'9J71�4^t /( / //J,71 /(!!Y'(�.W l!