2014 Jan 21 - 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, JANUARY 21, 2014 — 6:00 PM
6:00 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(d) (3) -2- matter
1. City of El Segundo vs. City of Los Angeles, et.al. LASC Case No. BS094279
2. Springfield vs. City of El Segundo, et.al. LASC Case No. YC067789
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code §54956.9(d) (2) and (3):
-0- matter.
Initiation of litigation pursuant to Government Code §54956.9(c): -0- matter.
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957): -0- matter
APPOINTMENT OF PUBLIC EMPLOYEE (Gov't. Code § 54957) —0- matter
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6): -0-
matters
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0-
matters
2
E
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, JANUARY 21, 2014 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER
INVOCATION — Rev. Diana Ferguson, St. Michael Episcopal Church
PLEDGE OF ALLEGIANCE — Council Member Atkinson
3
PRESENTATIONS
a) ES Chamber Holiday Parade Trophy winners.
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.
CITY COUNCIL COMMENTS — (Related to Public Communications)
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 to adopt a resolution supporting the
California Office of Business and Economic Development's mission to
increase the competitiveness of California's business climate.
Fiscal Impact: None)
Recommendation — 1) Adopt the resolution; 2) Alternatively, discuss and take
other action related to this item.
E. CONSENT AGENDA
n
n
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 2595677 to 2595854 on Register No. 6 in the total amount
of $912,346.02 and Wire Transfers from 11/22/2013 through 12/05/2013 in
the total amount of $887,198.35 and Warrant Numbers 2595855 to 2596034
on Register No. 7 in the total amount of $1,280,008.54 and Wire Transfers
from 12/06/2013 through 12/19/2013 in the total amount of $3,439,870.58).
Recommendation — Approve Warrant Demand Registers 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. Special City Council Meeting Minutes of December 11, 2013 and Regular
City Council Meeting Minutes of December 17, 2013.
Recommendation — Approval.
4. Consideration and possible action regarding the El Segundo Senior
Housing Corporation 2014 Annual Budget for the Park Vista Apartments
located at 615 East Holly Street.
(Fiscal Impact: None)
Recommendation — 1) Approve the 2014 Park Vista Budget; 2) Alternatively,
discuss and take other action related to this item.
5. Consideration and possible action to award a standard Public Works
Contract to Southwest Pipeline & Trenchless Corp. for the Trenchless
Sewer Improvement. Project No. PW 13 -23.
(Fiscal Impact: $210,000.00)
Recommendation — 1) Authorize the City Manager to execute a standard Public
Works Contract, in a form approved by the City Attorney, with Southwest Pipeline
& Trenchless Corp. in the amount of $186,515.00; 2) Alternatively, discuss and
take other action related to this item.
5
6i
6. Consideration and possible action regarding updating the contract
between the City and Public Agency Retirement System (PARS) to reflect
the current rate for the SPEA additional retirement annuity.
(Fiscal Impact: N /A) —
Recommendation — 1) Authorize the Director of Finance to execute the legal and
administrative service documents necessary to amend the current employee
contribution rates on behalf of the City; 2) Alternatively, discuss and take other
action related to this item.
7. Consideration and possible action regarding authorization for the City
Manager to enter into a three -year agreement with Insight, as approved to
form by the City Attorney, to provide Microsoft software support and
upgrades in an amount not to exceed $188,213.90 (3 Years of $62,737.97
per year).
Fiscal Impact: $188,213.90
Recommendation — 1) Authorize the City Manager to enter into a three -year
service, maintenance and upgrade agreement, as approved to form by the City
Attorney, with Insight in an amount not to exceed $188,213.90; (2) Alternatively,
discuss and take other action related to this item.
8. Consideration and possible action regarding the approval of an
amendment to an existing Professional Services Agreement with Pacific
Municipal Consultants ( "PMC ") to increase the amount of the agreement by
$45,000 for a total of $70,000 for planning consulting services.
(Fiscal Impact: $45,000.00)
Recommendation — 1) Authorize the City Manager to execute an amendment to
an existing Professional Services Agreement to increase the funding by $45,000
approved as to form by the City Attorney; 2) Alternatively, discuss and take other
action related to this item.
F. NEW BUSINESS
9. Consideration and possible action regarding acceptance of the terms
and conditions from a grant award by Chevron U.S.A., Inc. in the amount
of $200,000 to assist in Economic and Business Development within the
City of El Segundo over the next two fiscal years.
(Fiscal Impact: $$200,000 Revenue for the Chevron USA, Inc. Grant
Account for FY 2013 -2014 and 2014 -2015)
Recommendation — 1) Authorize the City Manager to execute the Grant
Agreement with Chevron U.S.A., Inc.; 2) Appropriate grant funding for FY 2013-
14 and 2014 -15 in the Economic Development Grant Fund Account; 3)
Alternatively, discuss and take other action related to this item.
on
C:
G. REPORTS — CITY MANAGER
H. REPORTS — CITY ATTORNEY
I. REPORTS — CITY CLERK
J. REPORTS — CITY TREASURER
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Fellhauer —
Council Member Atkinson —
Council Member Fuentes —
Mayor Pro Tern Jacobson —
Mayor Fisher —
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, et sue.) for the purposes of conferring with the City's Real Property
Negotiator; andlor 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.
7
7
REPORT OF ACTION TAKEN IN CLOSED SESSION (if required)
ADJOURNMENT
POSTED:
DATE:..
TIME:yL.�
NAME:
PRESENTATION
CHAMBER HOLIDAY PARADE WINNERS
EL SEGUNDO CITY COUNCIL MEETING DATE: January 21, 2014
AGENDA STATEMENT AGENDA HEADING: Economic Development Advisory Council
AGENDA DESCRIPTION:
Consideration and possible action to adopt a resolution supporting the California Office of
Business and Economic Development's mission to increase the competitiveness of California's
business climate. (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1. Adopt the attached resolution; and /or,
2. Alternatively, discuss and take other possible action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Resolution
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Ted Shove, Economic Development Analyst
REVIEWED BY: Sam Lee, Director of Planning and Building Safety
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
Over the course of the last two years, the Economic Development Advisory Council (EDAC) has
reconvened after a period of dormancy. During this time, a number of issues that concern the
overall business climate have been evaluated. While El Segundo is considered an excellent
community in which to operate a business, a number of external forces have posed challenges to
the existing business base. One of these challenges was exacerbated at a recent meeting when
one of the EDAC Members provided an email dialogue from an organization outside of
California attempting to recruit business to their home state of Texas. While this concept of
"poaching" businesses from one community to another is not new, the marketing accompanying
these efforts enacted a call to action from the EDAC to encourage the El Segundo City Council
to alert state lawmakers and officials in hopes of stepping up current efforts to improve
conditions for businesses currently operating and potentially seeking a new location in
California.
iI
WE
Currently, the primary agency responsible for business and economic development at the state
level is the California Governor's Office of Business and Economic Development (GO -Biz).
This Agency was created by current Governor Edmund G. Brown Jr. to serve as a single point of
contact for economic development and job creation efforts. Most notably, GO -Biz has acted as
an intermediary between business incentive programs created by lawmakers and working with
regional and local economic development organizations to optimize the newly established
programs. GO -Biz along with Governor Brown conduct periodic trade missions domestically and
internationally. By providing `boots to the ground' data on efforts from organizations outside of
California, it is likely this organization may be able to originate legislation such as specific
business incentives to match or neutralize those being offered from organizations outside of
California.
PAPlanning & Building SafetytCC Report.Template 2012.doe
11
RESOLUTION
A RESOLUTION SUPPORTING
BUSINESS AND ECONOMIC
INCREASE COMPETITIVENESS
CLIMATE
THE CALIFORNIA OFFICE OF
DEVELOPMENT'S MISSION TO
OF CALIFRONIA'S BUSINESS
WHEREAS, the Economic Development Advisory Council "EDAC" is an advisory
committee to the El Segundo City Council and periodically makes recommendations to
maintain business climate competitiveness; and
WHEREAS, the EDAC noted a series of efforts to "poach" California businesses from
organizations outside the state; and
WHEREAS, the California Governor's Office of Business and Economic Development is
charged with overseeing statewide business incentive programs and to periodically
report to California lawmakers regarding their effectiveness; and
THEREFORE, the City of El Segundo strongly encourages the California Governor's
Office of Business and Economic Development to work closely with lawmakers to
continue to increase California's business climate to remain competitive with other
States such that poaching efforts from organizations outside of California will cease.
BE IT FURTHER RESOLVED, with the concurrence of the Mayor, that by the adoption
of this Resolution, the City of El Segundo hereby strongly supports the continued efforts
of the California Office of Business and Economic Development to increase
competitiveness of California's business climate.
PASSED AND ADOPTED this
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
day of
Bill Fisher, Mayor
Karl H. Berger, Assistant City Attorney
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CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
11/22/13 THROUGH 12/05/13
Date Payee
Amount
Description
11/21/2013 State of CA EFT
3,885.00
EFT Child support payment
11/22/2013 Unum
274.20
LTD
11/22/2013 Nationwide NRS EFT
1,848.54
EFT 401a payment
11/22/2013 Nationwide NRS EFT
48,243.74
EFT 457 payment
11/22/2013 Manufacturers & Traders
667.31
IRA payment Vantagepoint
11/22/2013 Manufacturers & Traders
5,940.13
401 payment Vantagepoint
11/22/2013 Manufacturers & Traders
22,295.37
457 payment Vantagepoint
11122/2013 South Bay Credit Union
14,570.38
Payroll credit union deduction pmt
11/22/2013 US Bank - Trust Acct
6,366.39
PARS payment
11/25/2013 Cal Pers
115,684.97
EFT Retirement Misc (Chase)
11/25/2013 Cal Pers
5,438.12
EFT Retirement Misc Adj (Chase)
11/26/2013 Cal Pers
251,524.38
EFT Retirement Safety (Chase)
11/27/2013 Lane Donovan Golf Ptr
19,088.16
Payroll Transfer
12/2/2013 Health Comp
2,531.67
Weekly claims
12/3/2013 Health Comp
253.01
Weekly claims
12/5/2013 Employment Development
3,322.34
State Taxes
12/5/2013 Employment Development
49,410.43
State Taxes
12/5/2013 IRS
225,781.54
Federal Taxes
11/22/13- 12/05/13 Workers Comp Activity
110,072.67
SCRMA checks issued
887,198.35
DATE OF RATIFICATION: 01/07/14
TOTAL PAYMENTS BY WIRE:
887,198.35
Certified as to the accuracy of the wire transfers by:
Deputy City Treasurer I
Date
lMaAa,
tZI I
Director off.Finance
Date
City Manage ,
C
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
P: \City Treasurer \Wire Transfers\2013 \4th Qtr 2013 \Wire Transfers 12 -05 -13 14
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CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
12/06/13 THROUGH 12/19/13
Date
Payee
Amount
Description
12/6/2013
State of CA EFT
3,885.00
EFT Child support payment
12/6/2013
Nationwide NRS EFT
60,577.78
EFT 401a payment
12/6/2013
Nationwide NRS EFT
157,304.91
EFT 457 payment
12/6/2013
Manufacturers & Traders
467.31
IRA payment Vantagepoint
12/6/2013
Manufacturers & Traders
40,912.96
401 payment Vantagepoint
12/6/2013
Manufacturers & Traders
22,240.34
457 payment Vantagepoint
12/6/2013
South Bay Credit Union
14,570.38
Payroll credit union deduction pmt
12/6/2013
US Bank - Trust Acct
6,366.39
PARS payment
12/9/2013
Cal Pers
454,243.60
EFT Health Payment
12/10/2013
West Basin
1,767,257.48
H2O payment
12/10/2013
Employment Development
981.61
State Taxes
12/10/2013
Employment Development
24,954.62
State Taxes
12/10/2013
IRS
107,623.67
Federal Taxes
12/10/2013
Manufacturers & Traders
3,870.78
457 payment Vantagepoint
12/10/2013
Cal Pers
115,370.89
EFT Retirement Misc (Chase)
12/10/2013
Cal Pers
252,026.15
EFT Retirement Safety (Chase)
12/10/2013
Cal Pers
419.24
EFT Retirement Misc Adj (Chase)
12/10/2013
Cal Pers
5,045.47
EFT Retirement Safety Adj (Chase)
12/11/2013
Nationwide NRS EFT
840.00
EFT 457 payment (Chase)
12/11/2013
Lane Donovan Golf Ptr
21,955.00
Payroll Transfer
12/13/2013
Pitney Bowes
1,000.00
Library Hall Postage
12/17/2013
Health Comp
4,347.10
Weekly claims
12/19/2013
Health Comp
355.00
Weekly claims
12/19/2013
Employment Development
3,292.93
State Taxes
12/19/2013
Employment Development
51,123.09
State Taxes
12/19/2013
IRS
231,733.54
Federal Taxes
12/19/2013
State of CA EFT
3,885.00
EFT Child support payment
12/19/2013
Nationwide NRS EFT
1,848.54
EFT 401a payment (Chase)
12/19/2013
Nationwide NRS EFT
33,138.98
EFT 457 payment (Chase)
12/06/13- 12/19/13
Workers Comp Activity
48,232.82
SCRMA checks issued
3,439,870.58
DATE OF RATIFICATION: 01/21114
TOTAL PAYMENTS BY WIRE:
3,439,870.58
Certified as to the accuracy of the wire transfers by:
Deputy City Treasurer I Date
&V k,4,L Ltd,
Director f Fina ce
city ��ager7
I -l7—
Date
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
P: \City Treasurer \Wire Transfers\2013 \4th Qtr 2013 \Wire Transfers 12 -19 -13 16
SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
WEDNESDAY, DECEMBER 11, 2013 5:00 P.M.
CALL TO ORDER — Mayor Fisher at 5:04 PM
PLEDGE OF ALLEGIANCE — Council Member, Marie Fellhauer
ROLL CALL
Mayor Fisher -
Present
Mayor Pro Tern Jacobson -
Present
Council Member Fuentes -
Present
Council Member Atkinson -
Present
Council Member Fellhauer -
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 before addressing the City Council. Failure to do so is a misdemeanor and punishable
by a fine of $250.
None
UNFINISHED BUSINESS:
Consideration and possible action regarding (1) adopting a resolution placing a general tax ballot
measure on the April 8, 2014 general municipal election (the "Consolidated Tax Measure ") that
would increase the Utility User Tax ( "UUT ") rate on non - residential users and impose a UUT on
residents; increase the Transient Occupancy Tax ( "TOT ") rate; impose a parking tax on non-
residential parking, except for employee, restaurant and theater parking, and valet parking
( "Parking Tax "); reduce the Business License Tax Credit ( "BLT Credit "); (2) direct the City
Attorney's Office to prepare an impartial analysis of the ballot measure and find the ballot measure
to be exempt from review under the California Environmental Quality Act ( "CEQA "); (3) adopting a
resolution regarding ballot arguments for the ballot measure; (4) appointing a council member or
members to draft ballot arguments regarding the ballot measure; and (5) adopting a resolution
stating the Council's purpose and intent of using a portion of the funds from the ballot measure, if it
passes, on capital improvement projects, if feasible, and allowing the Chamber of Commerce to
appoint two members to the Capital Improvement Project Advisory Board.
(Fiscal Impact: Increase in general fund revenues in the amount of approximately $6.6 million
during the first three years following passage of the ballot measure which would be reduced to
approximately $5.9 million thereafter.)
Greg Carpenter, City Manager, stated corrections and clarifications to the staff report.
Mark Hensley, City Attorney, stated corrections and clarifications to Resolution No. 4856.
Council discussion with the City Attorney on wording for the possible, April 8, 2014, ballot
measure.
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
December 11, 2013
PAGE NO. 1
17
Mark Hensley, City Attorney, explained a change to Section 14 of Ordinance No. XXX
Mark Hensley, City Attorney, read by title only:
RESOLUTION NO. 4856
A RESOLUTION PLACING A BALLOT MEASURE ON THE APRIL 8, 2014 BALLOT PURSUANT
TO ARTICLE XIIIC, § 2(B), OF THE CALIFORNIA CONSTITUTION; ELECTIONS CODE § 9222;
AND GOVERNMENT CODE §§ 53723 AND 53724 REGARDING TRANSIENT OCCUPANCY
TAXES; USER UTILITY TAXES; AN AIRPORT PARKING TAX; AND BUSINESS LICENSE TAX
(COLLECTIVELY, THE "CONSOLIDATED TAX MEASURE ").
MOTION BY Council Member Fellhauer, SECONDED by Council Member Atkinson to adopt
Resolution No. 4856. MOTION PASSED BY UNANIMOUS VOICE VOTE: 5/0
RESOLUTION NO. 4857
A RESOLUTION DIRECTION THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
OF THE BALLOT MEASURE REGARDING THE CONSOLIDATED TAX MEASURE.
MOTION BY Council Member Fuentes, SECONDED by Council Member Fellhauer to adopt
Resolution No. 4857. MOTION PASSED BY UNANIMOUS VOICE VOTE: 5/0
RESOLUTION NO. 4858
A RESOLUTION ESTABLISHING REQUIREMENTS FOR BALLOT ARGUMENTS FILED WITH
THE CITY CLERK TO BE INCLUDED WITH VOTER INFORMATION FOR THE GENERAL
MUNICIPAL ELECTION ON APRIL 8, 2014.
MOTION BY Council Member Fellhauer, SECONDED by Council Member Fuentes to adopt
Resolution No. 4858. MOTION PASSED BY UNANIMOUS VOICE VOTE: 5/0
MOTION BY Council Member Fellhauer, SECONDED by Council Member Atkinson to appoint
Councilmembers Fuentes and Fellhauer to draft the Argument in favor of the Consolidated Tax
Measure. MOTION PASSED BY UNANIMOUS VOICE VOTE: 5/0
RESOLUTION NO. 4859
A RESOLUTION IDENTIFYING THE CURRENT COUNCIL'S STATEMENT OF PURPOSE AND
INTENT FOR WHICH TAX REVENUE GENERATED FROM THE CONSOLIDATED TAX
MEASURE SHOULD BE EXPENDED TO THE EXTENT POSSIBLE; AND AMENDING THE
MEMBERSHIP FOR THE EL SEGUNDO CAPITAL IMPROVEMENT PROGRAM ADVISORY
COMMITTEE.
MOTION BY Council Member Atkinson, SECONDED by Council Member Fellhauer to adopt
Resolution No. 4859. MOTION PASSED BY UNANIMOUS VOICE VOTE: 5/0
Comments by Council concerning the measure
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
December 11, 2013
PAGE NO. 2
irz
ADJOURNMENT at 6:01 PM
Tracy Weaver, City Clerk
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
December 11, 2013
PAGE NO. 3
WE
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, DECEMBER 17, 2013 — 5:00 PM
5:00 P.M. SESSION
CALL TO ORDER- Mayor Fisher at 5:00 PM
ROLL CALL
Mayor Fisher -
Present
Mayor Pro Tern Jacobson -
Present
Council Member Fuentes -
Present
Council Member Atkinson -
Present
Council Member Fellhauer -
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.
Mayor Fisher announced that Council would be meeting in closed session pursuant of
the items listed on the agenda.
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(d) (3) -1- matter
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(d) (2) and (3):
-0- matter.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
December 17, 2013
PAGE NO. 1
WE
Initiation of litigation pursuant to Government Code §54956.9(c): -0- matter.
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957): -0- matter
APPOINTMENT OF PUBLIC EMPLOYEE (Gov't. Code § 54957) —0- matter
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6): -1-
matters
Unrepresented Group: Supervisory and Professional Employees Association
City Negotiator: Greg Carpenter, City Manager
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0-
matters
Adjourned at 6:31 PM
No reportable action
MINUTES OF THE REGULAR CITY COUNCIL MEETING
December 17, 2013
PAGE NO. 2
21
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, DECEMBER 17, 2013 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER- Mayor Fisher at 7:00 PM
INVOCATION — Father Alexei Smith, St. Andrew Russian Greek Catholic Church
PLEDGE OF ALLEGIANCE — Council Member Fuentes
PRESENTATIONS
Commendation read by Mayor Fisher to Mary Kobus, Deputy City Treasurer, for her 18
years of service to the City of El Segundo.
Presentation by Denise Di Pasquale, of the South Bay Workforce Investment Board,
presented the quarterly summary report. The quarter given to the Council.
ROLL CALL
Mayor Fisher -
Present
Mayor Pro Tern Jacobson -
Present
Council Member Fuentes -
Present
Council Member Atkinson -
Present
Council Member Fellhauer -
Present
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) Individuals who have received value of $50 or more to
communicate to the City Council on behalf of another, and employees speaking on
behalf of their employer, must so identify themselves prior to addressing the City
Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250.
While all comments are welcome, the Brown Act does not allow Council to take action
on any item not on the agenda. The Council will respond to comments after Public
Communications is closed.
None
CITY COUNCIL COMMENTS — (Related to Public Communications)
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the Agenda by title
only.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
December 17, 2013
PAGE NO. 3
22
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Fuentes 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)
1. Consideration and possible action regarding (Public Hearing) the proposed
project and budget for the FY 2014/15 Community Development Block Grant
(CDBG) Program Year. The estimated CDBG budget allocation for Program
Year 2014 -2015 is approximately $52,847.
(Fiscal Impact: $52,847.00).
Mayor Fisher stated this was the time and place to conduct a Public Hearing and
receive public testimony concerning adopting the new 2014 -2015 Community
Development Block Grant project and budget and authorize the City Manager to
execute the contracts, in a form approved by the City Attorney, with the Los Angeles
County Community Development Commission (CDC).
Clerk Weaver stated that proper notice has been done and no communication was
received in the Clerk's office.
Tina Gall, Community Development Block Grant consultant, gave a presentation and
answered questions.
Opened Public Hearing
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Fellhauer to
close the hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0
Council Discussion
MOTION by Council Member Fuentes, SECONDED by Council Member Fellhauer to
adopt the 2014 -2015 Community Development Block Grant project and budget and
authorize the City Manager to execute the contracts, in a form approved by the City
Attorney, with the Los Angeles County Community Development Commission (CDC).
MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0
C. UNFINISHED BUSINESS
D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS
MINUTES OF THE REGULAR CITY COUNCIL MEETING
December 17, 2013
PAGE NO. 4
23
2. Consideration and possible action to open the recruitment process for the
positions on the Committees, Commissions and Boards ( "CCBs ") that will expire
in the year 2014.
(Fiscal Impact: None).
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Fellhauer
directing Staff to open the recruitment process for the positions on the Committees,
Commissions and Boards.
E. CONSENT AGENDA
All items listed are to be adopted by one motion without discussion and passed
unanimously. If a call for discussion of an item is made, the item(s) will be considered
individually under the next heading of business.
3. Approved Warrant Numbers 2595480 — 2595676 on Register No. 5 in the total
amount of $1,155,648.79 and Wire Transfers from 11/0/2013 through 11/21/2013
in the total amount of $2,579,422.21. Authorized staff to release. Ratified Payroll
and Employee Benefit checks; checks released early due to contracts or
agreement; emergency disbursements and /or adjustments; and wire transfers.
4. Approved Regular City Council Meeting Minutes of December 3, 2013.
5. PULLED BY COUNCIL MEMBER ATKINSON
6. Accepted as complete construction of the Beach Restroom and Lifeguard Facility
and authorized the City Clerk to file a Notice of Completion with the County
Recorder's Office. PW No. 10 -09
(Fiscal Impact: $1,756,534.66)
7. PULLED BY MAYOR PRO TEM JACOBSON
8. Approved Vesting Tract No. 71903, a subdivision of the property surrounded by
Kansas Street, Illinois Street, Franklin Avenue and Grand Avenue for commercial
condominium purposes and authorized the appropriate City Official(s) to sign and
record said Map.
(Fiscal Impact: None)
MOTION by Council Member Fuentes, SECONDED by Council Member Fellhauer to
approve Consent Agenda items 3, 4, 6, and 8. MOTION PASSED BY UNANIMOUS
VOICE VOTE. 5/0
MINUTES OF THE REGULAR CITY COUNCIL MEETING
December 17, 2013
PAGE NO. 5
24
PULLED ITEMS:
5. Consideration and possible action to adopt a Resolution approving Plans and
Specifications for resurfacing of the tennis courts at Recreation Park. Project No,
PW 13 -30.
(Fiscal Impact: $50,400.00)
Council Member Atkinson clarified that this work was being paid for with grant funds.
MOTION by Council Member Atkinson, SECONDED by Council Member Fellhauer to
adopt Resolution No. 4861 approving Plans and Specifications for resurfacing of the
tennis courts at Recreation Park. Project No. PW 13 -30. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
7. Consideration and possible action to authorize the City Manager to send a letter
to the South Bay Cities Council of Governments (SBCCOG) in support of
consulting services to prepare plans and specifications for the installation of
bikeways in El Segundo.
(Fiscal Impact: None)
Mayor Pro Tern Jacobson asked for City Council to review preliminary plan for bikeway
project before they are finalized.
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Fellhauer to
authorize the City Manager to send a letter to the South Bay Cities Council of
Governments (SBCCOG) in support of consulting services to prepare plans and
specifications for the installation of bikeways in El Segundo. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
F. NEW BUSINESS
9. Consideration and possible action to adopt policy changes to the City's
Residential Sound Insulation (RSI) Program regarding the discontinuation of the
"Owner Upgrade" aspect of the program.
(Fiscal Impact: None).
Sam Lee, Director of Planning and Building Safety, gave a presentation and answered
questions by Council.
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Atkinson to
adopt policy changes to the City's Residential Sound Insulation (RSI) Program
regarding the discontinuation of the "Owner Upgrade" aspect of the program. MOTION
PASSED BY UNANIMOUS VOICE VOTE. 5/0
MINUTES OF THE REGULAR CITY COUNCIL MEETING
December 17, 2013
PAGE NO. 6
25
G. REPORTS — CITY MANAGER — Thanked all the City employees for another year
of dedicated service and wished everyone Happy Holidays.
H. REPORTS — CITY ATTORNEY — None
REPORTS — CITY CLERK — None
J. REPORTS — CITY TREASURER - None
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Fellhauer — Merry Christmas and Happy New Year to all.
Council Member Atkinson — Merry Christmas and Happy New Year to all.
Council Member Fuentes — Thanked the City for the Tree Lighting Ceremony and
thanked the Chamber for their work on the Holiday Parade. Attended the second day of
the Governor's Military Council.
Mayor Pro Tern Jacobson — Thanked Council Member Fuentes for attending the Military
Council. Enjoyed the Holiday Parade and Tree Lighting Ceremony. Wished everyone a
Merry Christmas and a Happy New Year.
Mayor Fisher —
10. Consideration and possible action to adopt a resolution expressing full support
for the Boeing Company to bring the 777X Jetliner assembly work to Long
Beach, California.
(Fiscal Impact: None)
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Fellhauer to
adopt Resolution No. 4860 in support for the Boeing Company to bring the 777X Jetliner
assembly work to Long Beach, California. MOTION PASSED BY UNANIMOUS VOICE
VOTE. 5/0
11. Consideration and possible action regarding the annual request of Mrs. S. Claus
for variances from the Municipal Code.
(Fiscal Impact: None)
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Fuentes to
approve the request from Mrs. S. Claus for variances from the Municipal Code.
MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0
MINUTES OF THE REGULAR CITY COUNCIL MEETING
December 17, 2013
PAGE NO. 7
26
Mayor Fisher thanked Mattel for our Tree and their continued support of the City and
thanked the Chamber for their work on the annual Holiday parade. Merry Christmas
and Happy New Year to all.
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) Individuals who have receive value of $50 or more to
communicate to the City Council on behalf of another, and employees speaking on
behalf of their employer, must so identify themselves prior to addressing the City
Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250.
While all comments are welcome, the Brown Act does not allow Council to take action
on any item not on the agenda. The Council will respond to comments after Public
Communications is closed.
None
MEMORIALS — None
ADJOURNMENT at 7:35 PM
Tracy Weaver, City Clerk
MINUTES OF THE REGULAR CITY COUNCIL MEETING
December 17, 2013
PAGE NO. 8
27
EL SEGUNDO CITY COUNCIL MEETING DATE: January 21, 2014
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding the El Segundo Senior Housing Corporation 2014 Annual
Budget for the Park Vista Apartments located at 615 East Holly Street.
(Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1. Approve the 2014 Park Vista Budget; or
2. Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. 2014 Park Vista Budget
FISCAL IMPACT: N /A— No General Fund
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
PREPARED BY: Meredith Petit, Recreation Superintendent
REVIEWED BY: Bob Cummings, Director of Rec tion and Parks
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND & DISCUSSION:
On Wednesday, December 19, 2013, the El Segundo Senior Housing Corporation Board of Directors
approved the 2014 Annual Budget (see summary below) for the Park Vista Apartments located at 615
East Holly Street. The increases in expenses are primarily due to general building maintenance,
insurance premium increases, and utilities.
Operating Budget Annual Comparison
W
2013
2014
Variance
Increase /Decrease
$ 363,250
$ 387,490
$ 24,240
0.67%
-Expenses
Revenue
$ 586,017
$ 592,064
$ 6,047
1.03%
Net Income
$ 222,767
1 $ 204,574
18,193
- 8.17%
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U
EL SEGUNDO CITY COUNCIL MEETING DATE: January 21, 2014
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to award a standard Public Works Contract to
Southwest Pipeline & Trenchless Corp. for the Trenchless Sewer Improvement. Project
No. PW 13 -23 (Fiscal Impact: $210,000.00)
RECOMMENDED COUNCIL ACTION:
Authorize the City Manager to execute a standard Public Works Contract, in a form
approved by the City Attorney, with Southwest Pipeline & Trenchless Corp. in the
amount of $186,515.00.
2. Alternatively, discuss and take other possible action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Map of Project Area
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $1,000,000 for sewer repairs
Additional Appropriation: No
Account Number(s): 502- 400 - 8204 -8647 (Sewer Enterprise Fund)
ORIGINATED BY: Lifan Xu, Principal Engineer L
REVIEWED BY: Stephanie Katsouleas, Public Wo s Director^
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
In 2010, Advanced Sewer Technologies (AST) conducted a video inspection and conditional
assessment on the City's sanitary sewer collection system's pipes and manholes. The
Conditional Assessment Report found broken pipes, fractures, offsets and various other
deficiencies throughout the system. Staff uses the AST report to serve as its guidance document
for prioritizing the City's highest sewer repair and replacement needs annually. Based on the
AST report's findings, over the last two years staff has already implemented $1,052,044.08
worth of open trench and sewer lining projects at various locations throughout Smokey Hollow
and Maple Ave. Please note that staff evaluates the condition of each priority segment of sewer
mains prior to developing plans and specifications to determine which segments can be lined and
which segments are in need of full replacement (e.g., open trench). This, in turn, allows us
implement the best possible options in the most cost - effective manner.
Staff is now ready to proceed with tenchless improvements, predominantly in the western
residential areas of El Segundo (see attached map). Trenchless repair (lining) is an inexpensive
and effective repairing method for deficiencies in pipes that are still structurally sound but have
been compromised and leak.
31
On November 19, 2013, that City Council adopted plans and specifications for the Trenchless
Sewer Improvement (Project No. PW13 -23) and authorized staff to advertise the project for
receipt of construction bids.
On December 17, 2013, the City Clerk received and opened three (3) bids as follows:
1. Southwest Pipeline & Trenchless Corp. $186,515.00
2. Repipe California LP $199,944.00
3. Sancon Engineering Inc. $206,916.00
The lowest responsible bidder was Southwest Pipeline & Trenchless Corp. Staff checked
references and the contractor's license status. Southwest Pipeline & Trenchless Corp. has
satisfactorily completed similar or larger projects for many other public agencies. Staff
recommends that City Council award a standard public works contract to Southwest Pipeline &
Trenchless Corp. in the amount of $186,515.00 and approve an additional $23,485.00 for
construction - related contingencies.
Staff estimates the following timeline for the project:
February, 2014 Start Construction
May, 2014 Complete Project
Once we have finalized plans and specifications for the second phase of the annual sewer main
repairs (i.e., open trenching), we will seek City Council approval to commence bidding using the
remaining budget allocated to the 2013 -14 sewer improvement project.
32
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33
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: January 21, 2014
AGENDA HEADING: Consent Agenda
Consideration and possible action regarding updating the contract between the City and
Public Agency Retirement System (PARS) to reflect the current rate for the SPEA additional
retirement annuity.
RECOMMENDED COUNCIL ACTION:
1. Authorize the Director of Finance to execute the legal and administrative service
documents necessary to amend the current employee contribution rates on behalf of
the City;
2. Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. ATTACHMENT A: City of El Segundo PARS Retirement Enhancement Plan —
Supervisory and Professional Employee Association
FISCAL IMPACT: n/a.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Angelina Garcia, Fiscal Services Man_ ager
REVIEWED BY: Deborah Cullen, Director of Finance
CA
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
On September 1, 2008, the City entered into an agreement with the El Segundo SPEA bargaining
unit which provided this unit with the PARS .5 @ 55 Retirement Enhancement Formula as a
supplement to the City's 2% @ 55 Public Employees Retirement System Formula for non - safety
employees.
Eligible members of the SPEA bargaining unit were identified as those who:
1. Are full -time miscellaneous employees of the city, on or after August 5, 2008'
2. Are 55 years of age or older;
3. Have completed 15 years of continuous service with the City of El Segundo as of the last day
of employment with the City;
4. Have terminated employment with the City while represented by SPEA on or after
September 2008, and concurrently retire under Ca1PERS; and
5. Have applied for benefits under the plan.
34
At the time this plan was established, the cost of the PARS Supplemental Retirement Benefit was
agreed to be shared between the City, as the employer, and the covered employees. The cost to the
covered employees at the inception of the plan was 1% of their total annual pay and the cost to the
City was approximately 2 %.
On October 11, 2012, an agreement was reached by the City and the SPEA bargaining unit whereby
employees in this bargaining unit agreed to pay 100% of the required PARS contribution. Under this
same agreement, members also agreed to be responsible for any future increases. In addition, the
plan was closed and is no longer available to new bargaining unit members. The total contribution at
the time of the agreement was approximately 5.2% of total annual pay.
In November of 2013, staff received the most recent actuarial valuation for this plan (Attachment A),
which notes an increase in the contribution rate from 5.2% to 7.2% of total annual pay. Based on
the current agreement with SPEA, the City will amend the current contract with PARS to reflect the
change in rate to be paid by the bargaining group.
-2-
35
' 0,�.
CITY OF EL SEGUNDO
PARS RETIREMENT ENHANCEMENT PLAN
Supervisory and Professional Employee Association
June 30, 2012 Actuarial Valuation
Final Results
Presented by John E. Bartel, President
Prepared by Bianca Lin, Assistant Vice President & Actuary
Michelle Shen, Actuarial Analyst
Tak Frazita, Associate Actuary
Bartel Associates, LLC
December 9, 2013
CONTENTS
i I
Topic
Page
Benefit Summary
1
Data Summary
3
Assets
7
Actuarial Assumption Highlights
13
Actuarial Methods
17
Results
19
Impact of City Paying 9/30/13 Retiree Liability
30
GASB Statement No. 68
31
Actuarial Certification
I
32
Exhibits
35
(111 { 0 1
C: \Users \blin \Clicnls \City ofE1 Segundo\PARS \2012\Reporl\BA City of El Segundo 13 -12 -09 PARS REP 12 -06 -30 M al resulls docx
36
1
BENEFIT SUMMARY
• Effective Date
■ October 1 2008
• Eligibility
■ Supervisory and Professional employees who retire from the City
11/3/12)
under Ca1PERS on or after September 30, 2008
■ None
Benefit
■ Age 55 with 15 years of continuous City service
• Termination
Benefit
■ Full -time employees in the group between August 5, 2008 and
• Disability Benefit
October 1, 2012
• Pre - Retirement
• Retirement
■ Target of 2.5 % @55 less CalPERS 2 % @55
_
• Cost of Living
Benefit
■ City service from City hire date
• Normal Form of
■ Net Benefits
Benefit
Ret Age 2.5%255 2%255
Net
Contributions
55 2.500% 2.000%
0.500%
■ Effective 11/3/12 — Employees contribute full PARS cost
56 2.500% 2.052%
0.448%
57 2.500% 2.104%
0.396%
58 2.500% 2.156%
0.344%
59 2.500% 2.210%
0.290%
60 2.500% 2.262%
0.238%
61 2.500% 2.314%
0.186%
62 2.500% 2.366%
0.134%
63+ 2.500% 2.418%
0.082%
1) December 9, 2013
BENEFIT SUMMARY
• Final Pay
■ Highest consecutive 12 -month pay
■ PERSable pay including EPMC (7% before 11/3/12, 4% after
11/3/12)
• Early Retirement
■ None
Benefit
■ None, except refund of employee contribution with 4.25% interest
• Termination
Benefit
• Disability Benefit
■ None
■ Eligible to retire
• Pre - Retirement
Death Benefit
■ 100% joint- and - survivor option
_
• Cost of Living
■ 2% after retirement
Increases
• Normal Form of
■ Single life annuity
Benefit
• Employee
■ Prior to 11/3/12 —Employee contributed 1% of PERSable pay
Contributions
including EPMC
■ Effective 11/3/12 — Employees contribute full PARS cost
■ Refunded upon termination prior to eligibility
L]
December 9, 2013
E-1
37
DATA SUMMARY
Active Participant Statistics
Includes 5 RS1 employees with total payroll $473,000.
2 employees expected to retire after 10/1/08 was included in the active data.
Projected forward 1.75 years to the middle of 2011/12 fiscal year for the 6/30/10 valuation and 2.25 years to the middle of
2013/14 fiscal year for the 6/30/12 valuation.
1) December 9, 2013 3
DATA SUMMARY
1. l
Retiree Participant Statistics
6/30/08
6/30/10
6/30/12'
• Count
342
33
33
• Average Age
44.6
45.0
45.4
• Average City Service
11.1
9.5
10.6
• Average Benefit Service
11.1
9.1
10.5
• Annual PERSable Payroll
• Average
$ 88,579
$ 99,628
$ 104,167
• Total (000's)
3,012
3,288
3,437
• Projected Total Pay (OOOs)3
2,925
3,477
3,544
Includes 5 RS1 employees with total payroll $473,000.
2 employees expected to retire after 10/1/08 was included in the active data.
Projected forward 1.75 years to the middle of 2011/12 fiscal year for the 6/30/10 valuation and 2.25 years to the middle of
2013/14 fiscal year for the 6/30/12 valuation.
1) December 9, 2013 3
DATA SUMMARY
1. l
Retiree Participant Statistics
I
December 9, 2013
El-:-�
Wz
6/30/08
6/30/10
6/30/12
z
■ Count
-
3
4
• Average Age
n/a
61.8
63.0
• Average Retirement Age
n/a
60.6
60.3
• Average Monthly Benefit
n/a
$ 675
$ 635
I
December 9, 2013
El-:-�
Wz
DATA SUMMARY
i
Participation Reconciliation
December 9, 2013
DATA SUMMARY
Active by Age and Benefit Service
C
Active
33
Retiree
Total
• June 30, 2010
3
36
• Terminations
(3)
-
(3)
• New retirees
(1)
1
-
• New hires
4
-
4
• June 30, 2012
33
4
37
December 9, 2013
DATA SUMMARY
Active by Age and Benefit Service
C
P, ��
December 9, 2013
E
39
Benefit Service
Age
Under 1
1 -4
5 -9
10 -14
15 -19
20 -24
25 &
over
Total
Under 25
-
-
-
-
-
-
-
-
25 -29
-
-
-
-
-
-
-
-
30 -34
1
3
2
-
-
-
-
6
35 -39
1
2
1
-
-
-
-
4
40 -44
-
2
1
-
-
-
-
3
45 -49
-
1
-
2
1
2
1
7
50 -54
1
3
1
2
-
1
2
10
55 -59
-
1
-
-
-
1
-
2
60 -64
-
-
-
-
-
1
-
1
65 & Over
-
-
-
-
-
-
-
-
Total
3
12
5
4
1
5
3
33
P, ��
December 9, 2013
E
39
ASSETS
Actuarial Value of Plan Assets
Years from 7/1 to 6/30
ASSETS
Projected
2011/12
2012/13
9/30/13
• AVA (Beginning of Year)
$ 275,707
$ 447,764
$ 630,651
• Expected AVA (End of Year)
446,283
623,160
Market Value of Plan Assets
• MVA (End of Year)
453,685
660,615
706,754
• 115 of (MVA - Expected AVA)
Years fro_ m 7/1 to 6/30
7,491
6,118
• Preliminary AVA
447,764
Projected
682,282
• Minimum AVA (80% of MVA)
Projected
528,492
565,403
• Maximum AVA (120% of MVA)
544,422
2011/12
848,105
2012/134
9/30/135
630,651
• Beginning of Year Balance
$ 295,904
$ 453,685
$ 660,615
• Contributions
180,614
182,547
45,637
• Benefit Payment
(30,156)
(37,022)
(9,255)
• Expenses
(1,860)
(2,755)
(689)
• Earnings
9,183
64,160
10,447
• End of Year Balance
453,685
660,615
706,754
• Approximate returns
• Gross
2.5%
12.2%
n/a
• Expenses
0.5%
(0.5 %)
n/a
• Net
2.0%
11.7%
n/a
a Projected period of 6/1/13 to 6/30/13 using
5.75% investment return assumption.
Projected period of 711//13 to 9/30/13 using
5.75% investment return assumption.
Does not include investment expenses.
7E
MFZM
€ December 9, 2013
7
Iw
ASSETS
Actuarial Value of Plan Assets
�3 I
December 9, 2013
8
WE
Years from 7/1 to 6/30
Projected
Projected
2011/12
2012/13
9/30/13
• AVA (Beginning of Year)
$ 275,707
$ 447,764
$ 630,651
• Expected AVA (End of Year)
446,283
623,160
676,164
• MVA (End of Year)
453,685
660,615
706,754
• 115 of (MVA - Expected AVA)
1,480
7,491
6,118
• Preliminary AVA
447,764
630,651
682,282
• Minimum AVA (80% of MVA)
362,948
528,492
565,403
• Maximum AVA (120% of MVA)
544,422
792,738
848,105
• AVA (End of Year)
447,764
630,651
682,282
• Approximate Annual Return
6.2%
7.2%
n/a
�3 I
December 9, 2013
8
WE
$500,000
$400,000
$300,000
$200,000
$100,000
$0
ASSETS
Historical Assets
6/30/08 6/30/09 6/30/10 6/30/11 6/30/12
—MVA —f -AVA 80 %MVA 120 %MVA
(17 �, December 9, 2013
9
ASSETS
Historical Asset Returns
/V-/O
15%
10%
0%
(5 %)
✓f;
r
i
r _
08/09
09/10
10 /11
11/12
12/13
f MVA
12.6%
6.8%
6/30/08 6/30/09 6/30/10 6/30/11 6/30/12
—MVA —f -AVA 80 %MVA 120 %MVA
(17 �, December 9, 2013
9
ASSETS
Historical Asset Returns
/V-/O
15%
10%
0%
(5 %)
08/09
09/10
10 /11
11/12
12/13
f MVA
12.6%
6.8%
15.8%
2.0%
11.7%
Expected Retuml
6.0%
6.0%
5.8%
5.8%
5.8%
-f•AVA
7.2%
6.5%
8.0%
6.2%
7.2%
fi V
December 9, 2013
10
41
ASSETS
PARS Fund Options
1
December 9, 2013
I1
ASSETS
f L
Asset Return Assumptions
Confidence Level
Moderately
55%
Moderately
6.50`!❑
6.25%
Aggressive
Moderate
Conservative
Conservative
■ Target Allocation
5.75%
■ Recommended Assumption
5.75%
• Equity
60%
50%
30%
15%
• Fixed Income
35%
45%
65%
80%
• Cash
5%
5%
5%
5%
• Total
100%
100%
100%
100%
6.88%
6.48%
5.67%
• Median Return
5.00%
• Discount Rate
• 50% Confidence Level
7.00%
6.50%
5.75%
5.00%
• 55% Confidence Level
6.50%
6.25%
5.50%
4.75%
• 60% Confidence Level
6.25%
6.00%
5.25%
4.50%
1
December 9, 2013
I1
ASSETS
f L
Asset Return Assumptions
Confidence Level
50%
55%
• Net Return after Expenses
6.50`!❑
6.25%
• Plan Non - Investment Expense
0,50❑/❑
(0.50%)
• Net Return
6.00%
5.75%
■ Recommended Assumption
5.75%
)n expected long term non investment expenses.
December 9, 2013
12
� •I
W
ACTUARIAL ASSUMPTION HIGHLIGHTS
Assumption
6/30/10 Valuation
6/30/12 Valuation
• Valuation Date
■ 6/30/10
■ 6/30/12
■ 2011 /12 and 2012 /13 ARCs
■ 2013/14 and 2014/15 ARCs
(10 /1 through 9/30)
■ 50% Confidence Level:
(10 /1 through 9/30)
■ 55% Confidence Level:
• Discount Rate
• 6.75% before expenses
• 5.75% after expenses
• 5.75% after expenses
■ 5.25% & 6.25% for
■ 5.25% & 6.25% for
sensitivity
sensitivity
a Includes investment and non investment expenses.
December 9, 2013
13
ACTUARIAL ASSUMPTION HIGHLIGHTS
Assumption
6/30/10 Valuation
6/30/12 Valuation
• Mortality
■ CalPERS 1997 -2007
■ CalPERS 1997 -2007
Experience Study
Experience Study
■ Mortality improvement
projection Scale AA. Sample
annual longevity increases:
Age Male Female
50 1.8% 1.7%
60 1.6% 0.5%
70 1.5% 0.5%
80 1.0% 0.7%
• Termination
■ CalPERS 1997 -2007
■ RSI employees:
Experience Study
• 100% termination in 2020
■ Others: CalPERS 1997 -2007
Experience Study
(7)
December 9, 2013
14
43
ACTUARIAL ASSUMPTION HIGHLIGHTS
Assumption
6/30/10 Valuation
6/30/12 Valuation
■ Service
■ Ca1PERS 1997 -2007
■ Ca1PERS 1997 -2007
Retirement
Experience Study Benefit:
Experience Study Benefit:
Modified 2.5%@55
Modified 2.5 % @55
• Adding 1/3 of sum of the
■ Adding 1/3 of sum of the
rates for ages 50 -54 to the
rates for ages 50 -54 to the
rate for age 55
rate for age 55
• ERA z 59.2
■ ERA z 59.3
Afth
December 9, 2013 15
ACTUARIAL ASSUMPTION HIGHLIGHTS
This page intentionally blank
1-694
December 9, 2013 16 0
M"
ACTUARIAL METHODS
Method
6/30/10 Valuation
6/30/12 Valuation
• Cost Method
■ Entry Age Normal Level %
■ Same
Period
Payroll
(closed) period beginning
■ Same
• Actuarial Value
■ Investment gains and losses
of Assets
spread over a 5 -year rolling
on 9/30/13)
period
■ Gains/Losses - 15 -year fixed
■ Not less than 80% nor more
(closed) period
than 120% of market value
■ Plan Amendments, Method
■ Same as Ca1PERS, but
& Assumption Changes - 15-
shorter eriod
year fixed closed eriod
• Amortization
■ Level percent of payroll
■ Level dollar
Method
■ Plan closed to new hires after
10/1/12
lz. I
December 9, 2013 17
ACTUARIAL METHODS
Method
6/30/10 Valuation
6/30/12 Valuation
• Amortization
■ Initial UAAL - 20 -year fixed
■ Initial UAAL - 20 -year fixed
Period
(closed) period beginning
(closed) period beginning
2008/09 (17 years remaining
2008/09 (15 years remaining
on 9/30/11)
on 9/30/13)
• Gains /Losses - 15 -year fixed
■ Gains/Losses - 15 -year fixed
(closed) period
(closed) period
• Plan Amendments, Method
■ Plan Amendments, Method
& Assumption Changes - 15-
& Assumption Changes - 15-
year fixed (closed) period
year fixed closed eriod
• Future New
■ Closed group, no new hires
■ Same
Entrants
(17
December 9, 2013 18
RESULTS
Benefit Obligations
(Amounts in 000's)
I
9 Employee contribution rates are 1 %before 11/3/12 and 5.2 %effective 11/3/12.
December 9, 2013 19
RESULTS
Historical Funded Status
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
10/1/08 6/30/10 6/30/12
ORetireeAAL =ActiveAAL -i--AVA —A MVA
f.l
December 9, 2013
20
IIiz
i
46
6/30/10 Valuation
6/30/12 Valuation
5.75%
5.75%
Actual
_
Projected
Projected
Actual
6/30/10
9/30/11
6/30/12
9/30/13
• Present Value of Proj. Benefits
• Actives
$ 1,823
$ 2,347
• Retirees
433
527
• Total
• PV of EE Contrib.9
2,256
362
2,874
(1,757)
• Additional EE PVPB
1,894
1,117
• Actuarial Accrued Liability
• Actives
1,023
1,370
• Retirees
433
527
• Total
1,456
$ 1,619
1,897
$ 2,114
• Actuarial Value of Assets
183
299
448
682
• Unfunded Liability
1,273
1,319
1,449
1,432
• Normal Cost
78
n/a
106
9 Employee contribution rates are 1 %before 11/3/12 and 5.2 %effective 11/3/12.
December 9, 2013 19
RESULTS
Historical Funded Status
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
10/1/08 6/30/10 6/30/12
ORetireeAAL =ActiveAAL -i--AVA —A MVA
f.l
December 9, 2013
20
IIiz
i
46
RESULTS
Gains/Losses Analysis
(Amounts in 000's)
• June 30, 2010 Actual Value
• September 30, 2013 Expected Value
• Experience (Gains)/Losses:
• Pay increased more than expected
• Demographic & Other
• Assumption Changes
• Projected mortality improvement
• EPMC reduced from 7% to 4%
• Liability (Gains)/ Losses
• Asset Gains /(Losses)
• Total (Gains)/Losses
• September 30, 2013 Projected Value
R
December 9, 2013
AAL
Assets
UAAL
$ 1,456
1,899
$ 183
637
$ 1,273
1,262
7
161
90
(43)
215
45
170
2,114 682 1,432
21 0
RESULTS
Annual Pension Cost
(Amounts in 000'-,1
10 4 Level percentage of payroll amortization for 2011/12 and 2012/13. Level dollar amortization for 2013/14 and 2014/15.
l
l December 9, 2013 22
1
47
6/3_0/10 Valuation
6/30/12 Valuation
5.75%
5.75%
2011/12
2012/13
2013/14
2014/15
• Annual Pension Cost
• Total Normal Cost
$ 78
$ 81 $ 106
$ 106
• UAAL Amortization10
102
106 149 1
149
• Total
180
186 256
256
• EE Contributions
-35_1
(36) (184)
185
• Additional EE Contribution
146
150 71
71
• Projected Payroll
3,477
3,590
3,544
3,561
• Annual Pension Cost - %
• Total Normal Cost
2.2%
2.2%
3.0%
3.0%
• UAAL Amortization
2.9%
2.9%
4.2%
4.2%
• Total
5.2%
5.2%
7.2%
7.2%
• EE Contributions
1.0%
1( 0 %)
5.2%
5.2%
• Additional EE Contribution
4.2%
1 4.2%
2.0% 1
2.0%
10 4 Level percentage of payroll amortization for 2011/12 and 2012/13. Level dollar amortization for 2013/14 and 2014/15.
l
l December 9, 2013 22
1
47
RESULTS
Amortization Bases
(Amounts in 000's)
67 AgRtk
December 9, 2013 23 NW
RESULTS
Amortization Payments
(Amounts in 000's)
6/30/10 Valuation
6/30/12 Valuation
9/30/11
9/30/12
9/30/13
9/30/14
■ Outstanding Balance
2014/15
• Initial UAAL
$ 883
$ 868
$ 849
$ 812
2010 Valuation (Gains)Losses
436
425
412
390
2012 Valuation (Gains)Losses
-
-
171
163
• Total
1,319
1,293
1,432
1,365
67 AgRtk
December 9, 2013 23 NW
RESULTS
Amortization Payments
(Amounts in 000's)
Level percentage of payroll amortization for 2011/12 and 2012/13. Level dollar amortization for 2013/14 and 2014/15 -
December 9, 2013 24
48
6/30/10 Valuation
6/30/12 Valuation
2011/12
2012/13
2013/14
2014/15
■ Amortization Payment"
• Initial UAAL
$ 66
$ 68
$ 86
$ 86
2010 Valuation (Gains)Losses
36
37
46
46
2012 Valuation (Gains)Losses
-
-
17
17
• Total
102
16.3 ��
106
15.3
149
149
13.4
■ Average Amortization Years
14.4
Level percentage of payroll amortization for 2011/12 and 2012/13. Level dollar amortization for 2013/14 and 2014/15 -
December 9, 2013 24
48
RESULTS
20 -Year Projection Level $ Amortization Method
(Amounts in 000's)
FYE
Total
Cost
Projected
Pay
EE
Contr. as
% of Pav
FYE
Total
Cost
Projected
Pay
EE
Contr. as
% of Pay
9.9%
2014
$ 256
$ 3,544
7.2%
2024
$ 214
$ 2,165
2015
256
3,561
7.2%
2025
208
1,974
10.6%
2016
255
3,539
7.2%
2026
204
1,836
11.1%
2017
254
3,498
7.3%
2027
155
1,711
9.0%
2018
253
3,454
7.3%
2028
151
1,576
9.6%
2019
251
3,398
7.4%
2029
43
1,441
3.0%
2020
250
3,157
7.7%
2030
39
1,302
3.0%
2021
242
2,508
8.9%
2031
36
1,203
3.0%
2022
224
2,483
9.0%
2032
33
1,103
3.0%
2023
220
2,361
9.3%
2033
29
978
3.0%
E3
December 9, 2013
25
RESULTS
I-
20-Year Projection (Level % of Pav Amortization Method)
(Amounts in 000's)
FYE
Total
Cost
Projected
Pav
2014
$ 287
$ 3,544
2015
289
3,561
2016
287
3,539
2017
284
3,498
2018
280
3,454
2019
275
3,398
2020
256
3,157
2021
203
2,508
2022
201
2,483
2023
191
2,361
i
December 9, 2013
E
m'.
EE
Contr. as
% of Pay
FYE
Total
Cost
Projected
Pay
EE
Contr. as
% of Pay
8.1%
2024
$ 175
$ 2,165
8.1%
8.1%
2025
160
1,974
8.1%
8.1%
2026
149
1,836
8.1%
8.1%
2027
113
1,711
6.6%
8.1%
2028
104
1,576
6.6%
8.1%
2029
43
1,441
3.0%
8.1%
2030
39
1,302
3.0%
8.1%
2031
36
1,203
3.0%
8.1%
2032
33
1,103
3.0%
8.1%
2033
29
978
3.0%
26 0
M!
RESULTS
Interest Rate Sensitivity
(Amounts in 000's)
113 27 0
RESULTS
This page intentionally blank
1691
December 9, 2013 28 49
50
5.25%
5.75%
6.25%
■ Funded Status @ 6/30/12
• Actuarial Accrued Liability
$ 2,044
$ 1,897
$ 1,764
• Actuarial Value of Assets
448
448
448
• Unfunded Liability
1,596
1,449
1,316
■ 2013/14 Annual Pension Cost - $
• Total APC
277
256
236
• EE Contributions
184
184
184
• Additional EE Contribution
92
71
51
■ 2013/14 Annual Pension Cost - %
• Total APC
7.8%
7.2%
6.7%
• EE Contributions
5.2%
5.2%
5.2%
• Additional EE Contribution
2.6%
2.0%
1.5%
113 27 0
RESULTS
This page intentionally blank
1691
December 9, 2013 28 49
50
IMPACT OF CITY PAYING 9/30/13 RETIREE LIABILITY
■ Total employee contribution rates: 7.2%
■ If City pays off 9/30/13 retiree liability
• Estimated 9/30/13 retiree liability z$584,000
• Total employee contribution rate reduced from 7.2% to 5.5%
67 1) December 9, 2013
29
IMPACT OF CITY PAYING 9/30/13 RETIREE LIABILITY
I
E--, :
20 -Year Proiection (Assumes City Pays 9/30/13 retiree liability)
(Amounts in 000's)
FYE
Total
Cost
Projected
Pay
EE
Contr. as
% of Pay
FYE
Total
Cost
Projected
Pa
EE
Contr. as
% of Pa
2014
$ 196
$ 3,544
5.5%
2024
$ 155
$ 2,165
7.1%
2015
197
3,561
5.5%
2025
149
1,974
7.5%
2016
196
3,539
5.5%
2026
145
1,836
7.9%
2017
195
3,498
5.6%
2027
95
1,711
5.6%
2018
193
3,454
5.6%
2028
91
1,576
5.8%
2019
192
3,398
5.6%
2029
43
1,441
3.0%
2020
184
3,157
5.8%
2030
39
1,302
3.0%
2021
165
2,508
6.6%
2031
36
1,203
3.0%
2022
164
2,483
6.6%
2032
33
1,103
3.0%
2023
161
2,361
6.8%
2033
29
978
3.0%
0 Assumes retiree liability paid off prior to 9/30/13.
December 9, 2013 30 0
51
GASB STATEMENT NO. 68
• Pension accounting changes issued 6/25/12:
• Effective for 2014 /15 fiscal year for CaIPERS and PARS plans
• Fundamental changes:
• Delinks contributions and accounting
• Unfunded liability recognition drives expense
• Major issues:
• Unfunded liability on balance sheet
• Lower discount rate if projected assets do not cover projected benefit payments
• Immediate recognition of.
❑ Service & interest cost
❑ Benefit changes
• Deferred recognition of:
❑ Gains /losses & assumption changes, over future working lifetime (average of
active and inactive employees) closed period
❑ Asset gains /losses over 5 years
• Entry age normal cost method required
December 9, 2013 31 40
ACTUARIAL CERTIFICATION
This report presents the City of El Segundo ( "City ") PARS Retirement Enhancement Plan ( "Plan") June 30, 2012 actuarial
valuation. The purpose of this valuation is to:
• Determine the 2013/14 and 2014/15 fiscal years contribution requirement.
• Determine the June 30, 2012 Plan benefit obligations and funded status under Governmental Accounting Standards Board
( "GASB ") Statements 25 and 27, as amended by GASB 50.
• Determine the Plan's June 30, 2012 Funded Status, and
• Calculate the 2013/14 and 2014 /15 fiscal year Annual Pension Cost in accordance with GASB Statements 25, 27 and 50
Information provided in this report may be useful to the City for the Plan's financial management. Future valuations may differ
significantly if the Plan's experience differs from our assumptions or if there are changes in Plan design, actuarial methods or
actuarial assumptions. The project scope did not include an analysis of this potential variation.
The valuation is based on Plan provisions, participant data, and asset information provided by the City as summarized in this
report, which we relied on and did not audit. We reviewed the participant data for reasonableness.
To the best of our knowledge, this report is complete and accurate and has been conducted using generally accepted actuarial
principles and practices. Additionally, in our opinion, actuarial methods and assumptions comply with GASB 25, 27 and 50. As
members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results
and opinions herein.
Respectfully submitted,
fz.
John E. Bartel, ASA, FCA, MAAA
President, Bartel Associates, LLC
December 9, 2013
December 9, 2013
Bianca Lin, FSA, EA, MAAA
Assistant Vice President & Actuary, Bartel Associates, LLC
December 9, 2013
32 18
52
EXHIBITS
Topic
Actuarial Assumptions
Definitions
P, December 9, 2013
33
ACTUARIAL ASSUMPTIONS
Page jjjat7e _
E -1
E-4
21]
Assumption
6/30/10 Valuation
6/30/12 Valuation
• Valuation Date
■ 6/30/10
■ 6/30/12
■ 2011 /12 and 2012 /13 ABCs
■ 2013/14 and 2014/15 ARCS
10 /1 throll h 9/30
(10 /1 through 9/30)
• Investments
■ Moderate Hi hMark Plus
■ Same
• Discount Rate
■ 50% Confidence Level:
■ 55% Confidence Level:
• 6.75% before expenses 12
• 5.75% after expenses
• 5.75% after expenses
■ 5.25% & 6.25% for
■ 5.25% & 6.25% for
sensitivity
sensitivity
• General Inflation
■ 3.00%
■ Same
• Salary Increases
■ Aggregate Increases - 3.25%
■ Same
■ Merit Increase - CalPERS
1997 -2007 Experience Stud
" Includes investment and non investment expenses.
P,
December 9, 2013
E -1
53
ACTUARIAL ASSUMPTIONS
Assumption
6/30/10 Valuation
6/30/12 Valuation
• Mortality
■ Ca1PERS 1997 -2007
■ Ca1PERS 1997 -2007
Retirement
Experience Study
Experience Study
Modified 2.5 % @55
■ Mortality improvement
■ Adding 1/3 of sum of the
projection Scale AA. Sample
rates for ages 50 -54 to the
annual longevity increases:
rate for age 55
Age Male Female
■ ERA z 59.2
50 1.8% 1.7%
• Ca1PERS Service
■ City service plus 1/2 service
60 1.6% 0.5%
between age 30 and City hire
70 1.5% 0.5%
date
80 1.0% 0.7%
• Termination
■ Ca1PERS 1997 -2007
■ 5 RSI employees: terminate
Experience Study
in 2020.
females
■ Others: Ca1PERS 1997 -2007
• Post retirement-
■ 2%
Experience Study
■ Same
• Normal Form of
■ Single Life Annuity
Benefit
adjustment
67 -1
December 9, 2013
E -2
ACTUARIAL ASSUMPTIONS
L!3��
Assumption
6/30/10 Valuation
6/30/12 Valuation
• Service
■ Ca1PERS 1997 -2007
■ Ca1PERS 1997 -2007
Retirement
Experience Study Benefit:
Experience Study Benefit:
Modified 2.5 % @55
Modified 2.5 % @55
■ Adding 1/3 of sum of the
■ Adding 1/3 of sum of the
rates for ages 50 -54 to the
rates for ages 50 -54 to the
rate for age 55
rate for age 55
■ ERA z 59.2
■ ERA zf 59.3
• Ca1PERS Service
■ City service plus 1/2 service
■ Same
between age 30 and City hire
date
• Surviving Spouse
■ 80% married
■ Same
■ Males 3 years older than
females
• Post retirement-
■ 2%
■ Same
cost of living
adjustment
December 9, 2013
E -3
I El 11
54
_ DEFINITIONS
I
Present Value of Projected Benefits
(PVPB)
Without Assets
Curren) Norval
Cost
With Assets
Fntu M1cAsseh Costs
Unfunded AAL
Current Normal
Cost
■ PVPB - Present Value of all Projected Benefits
• Discounted value, at measurement date (valuation date) of all future expected
benefit payments.
• Expected benefit payments based on various actuarial assumptions
lZ I
December 9, 2013
E -4
DEFINITIONS _771
v,
',ee.,
■ AAL - Actuarial Accrued Liability / Actuarial Obligation
• Discounted value at measurement date (valuation date) of benefits "earned" through
measurement date based on actuarial cost method
• Portion of PVPB "earned" at measurement
■ NC -Normal Cost
• Value of benefits "earned" during current year
• Portion of PVPB allocated to current year
■ Actuarial Cost Method
• Determines how benefits are "earned" or allocated to each year of service
• Has no effect on PVPB
• Has significant effect on Actuarial Obligations and Normal Cost
December 9, 2013
E -5
6
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: January 21, 2014
AGENDA HEADING: Consent Agenda
Consideration and possible action regarding authorization for the City Manager to enter
into a three -year agreement with Insight, as approved to form by the City Attorney, to
provide Microsoft software support and upgrades in an amount not to exceed
$188,213.90 (3 Years of $62,737.97 per year). (Fiscal Impact: $188,213.90)
RECOMMENDED COUNCIL ACTION:
(1) Authorize the City Manager to enter into a three -year service, maintenance and
upgrade agreement, as approved to form by the City Attorney, with Insight in an amount
not to exceed $188,213.90.
(2) Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Attachment A: Compucom quote
Attachment B: Dell quote
Attachment C: Insight quote
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $62,737.97
Additional Appropriation: No
Account Number(s): $42,100.00 001 - 400 - 2505 -6217 Software Maintenance
$20,637.97 601 - 400 - 2505 -8108 Equipment Replacement -
Computer Hardware
ORIGINATED BY: Larry Klingaman, Information Systems Manager
REVIEWED BY: Mitch Tavera, Chief of Police �
APPROVED BY: Greg Carpenter, City Manager/
BACKGROUND AND DISCUSSION:
The City of El Segundo has installed and utilizes Microsoft software for most server systems.
This software is used for Operating Systems, Email, Databases, and other server based
applications. For each city employee that accesses these servers, Client Access Licenses are
required. The current three year agreement with Microsoft for Core Server Licensing in the
amount of $66,336.81 (three years of $22,112.27) expires on 1/31/2014.
W
Staff has negotiated a new three year agreement with Microsoft. This new agreement is broken
up into three distinct parts. The breakdown for these sections follows below.
1. Desktop Licensing.
2. Core Server Licensing
3, Library Academic Pricing
Desktop Licensing:
$27,467.45
$32,192.53
$ 3,077.98
$62,737.97 per year
As part of the Desktop Virtualization Project, licenses for desktop operating systems and Office
Productivity Software are now included in the annual charges to departments. In the past, these
licenses were included in the cost of purchasing new desktop equipment. As new hardware was
purchased, new versions of software were acquired and funded through equipment replacement.
This approach has led to a disjointed environment with most machines still on Windows XP and
Office 2003.
Moving forward, staff will acquire a subscription based license for the desktop operating system
and office products. Windows 7 and Office 2013 will become the current city standard for all
desktop machines. This approach will allow staff to migrate licenses between hardware as
requirements change over time. Switching to this licensing model will also allow staff to install
newer versions as they become available. This change adds $30,545.43 to the annual renewal
cost through Microsoft. Offsetting this cost is the $33,000.00 reduction in Equipment
Replacement charges for software.
Core Server Licensing:
This section shows the transition to a Datacenter licensing model which allows for unlimited
server installs on our licensed systems. In the past, the City has used enterprise and standard
versions of Microsoft server products in a one server, one license model. Staff completed the
virtualization of most city servers approximately two years ago. We now have a small count of
base servers that run all of our virtual servers, and an additional 10 servers that are not
virtualized. Switching to an unlimited version of Windows Server for all of our base servers will
cost the city an additional $6,902.24 (three years of $2,300.75) for this agreement due to license
upgrade costs. In subsequent three year terms the City will save $5,015.20 (three years of
$1,671.73).
Standard Server Licensing Cost
10 Standard License $423.64 = $ 4,236.40
40 Standard License $423.64 = $16,945.60
$21,182.00
Datacenter Upgrade Licensing Cost
10 Standard Licenses $ 423.64 = $ 4,236.40
4 Datacenter Upgrade License $5,961.96 = $23,847.94
57
$28,084.24
Datacenter Recurring Cost
10 Standard Licenses $ 423.64 = $ 4,236.40
4 Datacenter License $2,982.60 = $11,930.40
$56,166.80
Library Academic Pricing:
The third and final change is the utilization of the Academic Licensing options available to the
Library. After research, staff detennined that the main Library, and all four satellite locations, are
eligible for special pricing. Pricing for Desktops licenses are discounted at 60% and office
software is discounted at 82 %. Taken together, these account for a savings of $25,882.85 (three
years of $8,627.62) for the initial tree year term. Subsequent three year terms will show
additional savings of $16,163.87 (three years of $5,387.96).
Staff recommends the City Council authorize the City Manager to obtain three years of
Microsoft support and maintenance from insight for a three year total cost not to exceed
$188,213.90 (three years of $62,737.97).
CompuCom -software quote
Quoted by Mike Hawkins Com uCom 7171 Forest Lane Dallas TX 75230
Phone 858.527.8293 rnichael. hawk ins2 corn PLI coan.com
Please fax your POs to Client Assistance Center at 800 - 366 -9994. You may call 800 -400-
9852, o tion 2, to check status on orders.
Quoted to:
City of Escondido
Larry Klin aman
Iklin aman -)else undo,or
310.524.2392
Date Issued
11912014
Enterprise Agreement Quote
Important: Please provide the email address of the recipient designated to receive a
CompuCom "order confirmation"
Quantity
Part #
Description
Unit Price
Ext. Price
267
W06 -00446
Core CAL SA User CAL
$ 35.65
$ 9,518.55
16
W06 -00445
Core CAL (L +SA) User CAL
$ 72.74
$ 1,163.84
1
H04 -00268
Share ointServer SA
$ 1,000.31
$ 1,000.31
4
T6L -00237
System Center Datacenter (IL +SA ) 2Proc
$ 825.59
$ 3,302.36
4
P71 -07281
'WinSvrDatactr SASU) WinSvrStd 2Proc
$ 1,810.70
$ 7,242.80
10
P73 -05898
Windows Server Standard SA 2Proc
$ 129.78
$ 1,297.80
8
7NQ -00292
SQL Server Standard Core SA 2Lic CoreLic
$ 527.55
$ 4,220.40
1
395 -02504
Exchange Server Ent (SA)
$ 595.98
$ 595.98
100
3PS -00001
Exch OninKioskG ShrdSvrALNG SubsVL MVL PerUsr
$ 15.84
$ 1,584.00
5
D86 -01175
'Visio Standard (L +SA )
$ 91.44
$ 457.20
5
076 -01776
Project Standard (L +SA)
$ 206,60
$ 1,033.00
215
4ZF -00019
VDA Subscription Per Device
$ 56.50
$ 12,147.50
Product -total
$ 43,563.74
Sub -Total
$ 43,563.74
0
Tax
ESD - nontaxable ((Juwifload-only EA agrc;€ In ant option)
$ -
Shipping
No Charge
Total
Your 1st Annual Installment Payment
$ 43,563.74
3 Year Total
$ 130,691.22
Pass - Through Warranty and Other Rights. As a reseller, end -user warranties and liabilities (with respect to any third party hardware and software products
provided by CompuCom) shall be provided as a pass- through from the manufacturer of such products. All software products are subject to the license agreement
of the applicable software supplier, as provided with the software packaging or in the software at time of shipment,
59
CompuCom - software cluote
Quoted by Mike Hawkins. CompuCom 7171 Forest Lane, Dallas TX, 75230
Phone 858 - 527' -8293 michael.hawkins2 com ucom.com
Please fax your POs to Client Assistance Center at 800 - 366 -9994. You may call 800 -400-
985Z o tion 2, to check status on orders.
Quoted to:
City of Escondido
Larry Klin aman
Win aman elseaundo.org
310.524.2392
Date Issued
11912014
Microsoft Select Plus Agreement Quote
Important. Please provide the email address of the recipient designated to receive a
CompuCom "order confirmation"
Quantity
Part #
Descri Pion
Unit Price
Ext. Price
119
021 -05339
Office Standard(L +SA)
$ 458.51
$ 54,562.69
5
269 -0557
Office Professional Plus (L +SA)
$ 625.95
$ 3,129.75
Product -total
$ 57,692.44
Sub -Total
$ 57,692.44
0
Tax
ESO - nontaxable (download-only VL aclreetiient option)
$ -
Shipping
No Charge
Total
$ 57,692.44
Pass - Through Warranty and Other Rights. As a reseller, end -user warranties and liabilities (with respect to any third party hardware and software products
provided by CompuCom) shall be provided as a pass- through from the manufacturer of such products. All software products are subject to the license agreement
of the applicable software supplier, as provided with the software packaging or in the software at time of shipment.
•a
Com uCom - software guote
Quoted by Mike Hawkins Com uConn 7171 Forest Lane Dallas TX 75234
Phone 858 - 527 -8293 michaeI.hawkins2@cornpucom.com
Please fax your POs to Client Assistance Center at 800 - 366 -9994. You may call 800 -400-
9852., option 2, to check status on orders.
Quoted to:
City of Escondido Library
Larry Klin aman
$Iln anian else undo.or
310.524.2392
Date Issued
11912014
Microsoft Select Plus - Academic Agreement Quote
Important: Please provide the email address of the recipient designated to receive a
Com uCom 'order confirmation"
Quantity
Part #
Description
Unit Price
Ext. Price
50
021 -05331
Office Standard L +SA)
$ 78.83
$ 3,941.50
65
4ZF -00019
'VDA Subscription Per Device (3 Yr total calculated)
$ 80.05
$ 5,203.25
Product -total
$ 9,144.75
Sub -Total
$ 9,144,75
0
Tax
FSD -nontaxable (download-only FA is reemont o ation)
$ -
Shipping
No Charge
Total
$ 9,144.75
Pass - Through Warranty and Other Rights. As a reseller, end -user warranties and liabilities (with respect to any third party hardware and software products
provided by CompuCom) shall be provided as a pass- through from the manufacturer of such products. All software products are subject to the license agreement
of the applicable software supplier, as provided with the software packaging or in the software at time of shipment.
61
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63
City of El Segundo
Microsoft Select Licensing
nrollment# Sample Created by Jonathan Gold
MiCI+SO ft- Customer# Sample
•,
State anti Local Government Pricing
Quantky
M r.,part Number
Product Description
Unit Price
Total Unit Price
1
FUD -00956
CISDataCtr SNGL LicSAPk MVL 2Proc
$ 9,114.19
$9,114.19
1
W06 -00427
Core CAL SNGL SA MVL UsrCAL
$ 122.42
$122.42
1
395 -02505
ExchgSvrEntSNGLSA MVL
$ 1,945.44
$1,945.44
1
5HU -00236
LyncSvr 2013 SNGL MVL
$ 2,334.58
$2,334.58
1
5HU -00224
LyncSvrSNGL LicSAPk MVL
$ 4,085.52
$4,085.52
1
5HU -00235
LVncSvr SNGL SA MVL
$ 1,766.16
$1,766.16
1
79P -04712
0fficeProPlus 2013 SNGL MVL
$ 325.37
$325.37
1
269 -05557
OfficeProPlus SNGL LicSAPk MVL
$ 608.39
$608.39
1
269 -05708
OfficeProPlus SNGL SA MVL
$ 285.48
$285.48
1
021 -10293
OfficeStd 2013 SNGL MVL
$ 238.29
$238.29
1
021 -05339
OfficeStd SNGL LicSAPk MVL
$ 445.65
$445.65
1
021 -05471
OfficeStd SNGL SA MVL
$ 209.16
$209.16
1
076 -05292
Prjct 2013 SNGL MVL
$ 360.70
$360.70
1
076 -01810
Prjct SNGL LicSAPk MVL
$ 680.28
$680.28
1
076 -01920
Prjct SNGL SA MVL
$ 316.44
$316.44
1
H30 -04037
PrlctPro 2013 SNGL MVL wlPrjctSvrCAL
$ 601.13
$601.13
1
H30 -00255
PrjctPro SNGL LicSAPk MVL wlPrjctSvrCAL
$ 1,133.76
$1,133.76
1
H30 -00256
PrjctPro SNGL SA MVL wlPrjctSvrCAL
$ 527.40
$527.40
1
H04 -00269
SharePointSvr SNGL SA MVL
$ 3,265.25
$3,265.25
1
7NQ -00301
SQLSvrStdCore SNGL SA MVL 2LIc CoreLic
$ 1,722.03
$1,722.03
1
T9L -00232
SysCtrStd SNGL SA MVL 2Proc
$ 423.64
$423.64
1
4ZF -00030
VDA SNGL SubsVL MVL PerDvc
$ 194.51
$194.51
1
E9R -00011
VDIStew /MDOP SNGL SubsVL MVL PerDvc
$ 42.47
$42.47
1
D86 -05323
VisioStd 2013 SNGL MVL
$ 159.65
$159.65
1
D86 -01240
VisioStd SNGL LicSAPk MVL
$ 301.08
1 $301.08
1
D86 -01252
VisioStd SNGL SA MVL
$ 140.04
$140.04
1
P73 -05865
WinSvrStd SNGL SA MVL 2Proc
$ 423.64
$423.64
1
P71 -07860
WinSvrDataCtr 2012R2 SNGL MVL 2Proc
$ 3,976.68
$3,976.68
1
P71 -07304
WinSvrDataCtr SNGL LicSAPk MVL 2Proc
$ 6,959.28
$6,959.28
1
P71 -07306
WinSvrDataCtr SNGL SA MVL 2Proc
$ 2,982.60
$2,982.60
1
P71 -07305
WinSvrDataCtr SNGL SASU MVL WinSvrStd 2Proc
$ 5,961.96
$5,961.96
Total
$51,653.18
•,
65
Academic Pricing
Quantity
Mfr. Part Number
Product Description
1
021 -05331
OfficeStd ALNG LicSAPk MVL
1
021 -05464
OfficeStd ALNG SA MVL
1
021 -10282
OfficeStd 2013 ALNG MVL
1
269 -05623
OfficeProPlus ALNG LicSAPk MVL
1
269 -05704
OfficeProPlus ALNG SA MVL
1
79P -04691
OfficeProPlus 2013 ALNG MVL
1
076 -01776
Prjct ALNG LicSAPk MVL
1
076 -01912
Prjct ALNG SA MVL
1
076 -05273
Prjct 2013 ALNG MVL
1
D86 -01175
VisioStd ALNG LicSAPk MVL
1
D86 -01253
VisioStd ALNG SA MVL
1
D86 -05324
VisioStd 2013 ALNG MVL
1
D87 -01057
VisioPro ALNG LicSAPk MVL
1
D87 -01159
VisioPro ALNG SA MVL
1
D87 -05984
VisioPro 2013 ALNG MVL
1
4ZF -00019
VDA ALNG SubsVL MVL PerDvc (3 yr total calculated)
65
•i
Unit Prite
Total Unit Price
$
78.83
$
78.83
$
36.72
$
35.72
$
42.11
$
42.11
$
97.19
$
97.19
$
45.17
$
45.17
$
52.02
$
52.02
$
119.22
$
119.22
$
55.45
$
55.45
$
63.77
$
6177
$
52.75
$
52.75
24.60
$
24.60
$
28.15
$
28.15
101.84
$
101.84
$
4737
$
47.37
$
54.47
$
54.47
$
78.48
$
78.48
Total
$
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Klingaman, Larry J.
From: Letsinger, Christopher <Christopher.Letsinger @insight.com>
Sent: Wednesday, January 15, 2014 11:24 AM
To: Klingaman, Larry J.
Cc: Williams, Jinny
Subject: Net New EA quote along with Select request for CA -City of El Segundo
Attachments: City of El Segundo-EA Quote 2014.01.15.xlsx
Hi Larry,
Attached is the EA quote and below is both Select pricing you asked for. If you have any questions let me
know and I will conference in Jinny.
Thanks,
Chris
Insvight, City of El Segundo
January 1, 2014
Microsoft Select Plus Academic (USD)
3 Year Total:
021 -05331 OfficeStd ALNG LicSAPk MVL $ 79.60 50 $ 3,979.92
4ZF -00019 VDA ALNG SubsVL MVL PerDVc $ 80.83 65 $ 5,254.24
Total: 1 $ 9,234.16
City of El Segundo
Insvight, January 1, 2014
Microsoft Select Plus (USD)
3 Year Total:
269 -05557 OfficeProPlus SNGL UcSAPk MVL $ 625.95 20 $ 12,519.07
1
68
021 -05339 ; ISfficeStd SM3.1. LicSAPk,MVL $ 458.51 95 $ 43,558.49
Total;
Chris Letsinger I Account Executive 1 Insight Public Sector I Insi hr� t.cor�r
t. 800.467.4448 Ext. 5820 f. 480.760.8104 cietsina aWnsight.com
Insight Blog j Liri adIn I 5kktn±LYQjics I Fac b I Twltter I YouTube I Googie+
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$ 56,077.56
5-Sol
EL SEGUNDO CITY COUNCIL MEETING DATE: January 21, 2014
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding the approval of an amendment to an existing
Professional Services Agreement with Pacific Municipal Consultants ( "PMC ") to
increase the amount of the agreement by $45,000 for a total of $70,000 for planning
consulting services. (Fiscal Impact: $45,000)
RECOMMENDED COUNCIL ACTION:
1. Authorize the City Manager to execute an amendment to an existing Professional
Services Agreement to increase the funding by $45,000 approved as to form by the
City Attorney; and /or,
2. Alternatively, discuss and take other possible action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
None.
FISCAL IMPACT: $45,000
Amount Budgeted: $45,000 (001- 400 - 2402 -6214)
Additional Appropriation: N/A
Account Number(s): 001 - 400 - 2402 -6214 (Planning Division: Professional and
Technical)
ORIGINATED BY: Kimberly Christensen, AICP, Planning Manager v0
REVIEWED BY: Sam Lee, Director of Planning and Building Safety
APPROVED BY: Greg Carpenter, City Manager /
c-
AND DISCUSSION:
The City has retained Willdan for the past several years to provide professional consulting staff
at the Senior Planner level. Most of the City's projects costs are fully reimbursed by developers.
At their September 17, 2013 meeting, the Council approved $70,000 in the budget for FY
2013/2014 for Willdan to provide professional consulting services. More specifically, Trayci
Nelson has worked for the City as a Senior Planning Consultant hired through Willdan for the
past 7 years since April 2007. Shortly following Council approval, Ms. Nelson informed the
Planning and Building Safety Director and the Planning Manager that she was leaving
employment with Willdan and was beginning a new position with Planning Municipal
Consultants ( "PMC ") effective September 30, 2013. PMC also provides professional planning
consulting services and City staff negotiated terms for the continuation of Ms. Nelson's services
in her capacity as a planning consultant to the City. The City entered into an agreement with
PMC in the amount of $25,000 with City Manager approval to minimize disruption of services
a
on various on -going planning projects, including a major developer funded project, the 888
North Sepulveda Specific Plan Project that was in progress by continuing to retain Ms. Nelson
for projects to which she was already assigned.
At this time Planning staff requests that the Council approve the transfer of the remaining
$45,000 allocated for professional planning consulting services from Willdan to PMC, resulting
in a total contract amount of $70,000. No contract was ever executed with Willdan for any of the
$70,000 allocated to them for professional consulting services in the FY 2013/2014 budget. The
funds will be used primarily to complete the 888 North Sepulveda Specific Plan project and for
work on the Mattel Specific Plan Project for their planned campus expansion.
Recommendation
The Planning and Building Safety Department requests that the Council authorize the City
Manager to execute a Professional Services Agreement amendment with Pacific Municpal
Consultants, in a form approved by the City Attorney, for an additional sum of $45,000, for a
total not to exceed $70,000, for developer reimbursed planning consulting services.
PAPlanning & Building Safety\Planning \Consultant Ping Services\Pacific Municpal Consultants (Contract Planning) 2013- 14\PMC.Planning
Consultant Services.CC Report.1.21.14.doc
71
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: January 21, 2014
AGENDA HEADING: New Business I
Consideration and possible action regarding acceptance of the terms and conditions from a grant
award by Chevron U.S.A., Inc in the amount of $200,000 to assist in Economic and Business
Development within the City of El Segundo over the next two fiscal years. (Fiscal Impact:
$200,000 Revenue for the Chevron USA, Inc. Grant Account for FY 2013 -2014 and 2014 -15)
RECOMMENDED COUNCIL ACTION:
1. Authorize the City Manager to execute the Grant Agreement with Chevron U.S.A., Inc.;
2. Appropriate grant funding for FY 2013 -14 and 2014 -15 in the Economic Development Grant
Fund Account; and /or,
3. Alternatively, discuss and take other possible action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. Grant Agreement Between Chevron U.S.A. Inc and City of El Segundo, Effective
Date November 1, 2013
FISCAL IMPACT: $200,000 Revenue for the Chevron USA, Inc. Grant Fund
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): 125- 300 -2401 -3619
ORIGINATED BY: Ted Shove, Economic Development Analysts
REVIEWED BY: Deborah Cullen, Director of Finn ce X
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
In August 2013, staff was alerted to a potential funding opportunity that was available through
the Chevron Corporate Social Investment Program. Every year, Chevron makes available
financial resources for community investment within the communities they maintain operations
in the form of competitive grants.
Subsequently, staff authored an application and timely submitted all required documentation. All
grant applications were collected and reviewed by Chevron's main corporate headquarters.
Successful grant applications were packaged into grant agreements and returned to local offices
to so successful applicants could be notified toward the end of December 2013. The City of El
Segundo applied for and was successfully granted a multiyear grant in the amount of $200,000
for Economic and Business Development activities within El Segundo. Specifically, the grant
funding would provide financial resources for staff to carry out a number of activities previously
identified as Budgetary Goals along with tasks outlined in the 2013 Economic Development
A]
72
Strategy. These goals and tasks include a strong emphasis in business expansion, retention and
attraction through various methods of marketing and outreach. Notably, the grant identified at
least 50 staff outreach visits per year to local businesses to rapidly identify those businesses that
are most likely to require resources from strategic partners (with the City) to expand their
operations or simply to remain a viable `going concern'. Additionally, grant funding will support
updates to the www.elsegundobusiness.com website along with the roll out of an enhanced
marketing strategy which would include a social media component.
The Chevron USA, Inc. Grant expenditure account codes and estimated total expenditures over
FY 2013 -14 and 2014 -15 include:
Advertising: 125- 400 - 3619 -6201 - $40,000
Contractual Services: 125- 400 - 3619 -6206 - $150,000
Meetings & Travel: 125- 400 - 3619 -6213 - $10,000
The grant conditions do require a detailed report on an annual basis of the activity and progress
to date including how they align with stated grant conditions and target metrics identified in the
original application. Upon execution by both parties of the Chevron USA, Inc. Grant Agreement,
a one time $200,000 payment will be made to the City of El Segundo tendered either by check or
wire transfer within 30 days.
PAPlanning & Building Safety \CC Report.Template 2012.doc
73
GRANT AGREEMENT
BETWEEN
CHEVRON U.S.A. INC
AND
CITY OF EL SEGUNDO
Effective Date November 1, 2013
74
GRANT AGREEMENT
TABLE OF CONTENTS
SECTION
PAGE
AGREEMENT................................................................................................................ ..............................1
I.
DEFINITIONS AND EXHIBITS ..................................................................... ..............................1
2.
THE-GRANT .................................................................................................... ............................... 2
3.
EFFECTIVENESS AND TERMINATION ..................................................... ............................... 2
4.
ADDITIONAL OBLIGATIONS ....................................................................... ..............................2
6.
PAYMENT, USE OF THE GRANT FUNDS, ACKNOWLEDGEMENT, REPORT AND
OVERSIGHT.................................................................................................... ............................... 4
6.
TAXES ............................................................................................................... ..............................4
7.
INTELLECTUAL PROPERTY AND TRADEMARK ................................... ............................... 6
8.
GOVERNING LAW AND RESOLUTION OF DISPUTES ........................... ............................... 7
9.
INDEMNIFICATION .............................................. ............................... ...... ............................... 7
10.
INSURANCE .................................................................................................... ............................... 8
11.
GENERAL PROVISIONS ............................................................................... ............................... 8
12.
PROHIBITED PARTIES AND TRANSACTIONS .......................................... ..............................9
EXHIBITA
-PROGRAM DESCRIPTION ............................................................... ...............................
11
75
GRANT AGREEMENT
This Grant Agreement (the "Agreement "), dated as ofNoovember 1, 2013 (the "Effective Date "), by and
between Chevron U.S.A. Inc. , a Pennsylvania corporation, with its principal offices at 6001 Bollinger
Canyon Road, San Ramon, CA 94583 ( "Chevron" ) and the City of El Segundo, a California
municipality, with offices at 350 Main Street, El Segundo, CA 90245 ( "Recipient ").
RECITALS
A. Recipient is a governmental agency incorporated under the laws of the State of California, United
States of America.
B. Chevron has decided to support Recipient's Program.
AGREEMENT
In consideration of the mutual covenants and undertakings of the Parties set out under this Agreement the
Parties agree as follows:
DEFINITIONS AND EXHIBITS
1.1 Definitions. As used in this Agreement, these words or expressions have the following
meanings:
(A) "Affiliate" means any legal entity which controls, is controlled by or is under
common control with, another legal entity. An entity is deemed to "control"
another if it owns directly or indirectly at least fifty percent of the shares or
interests entitled to vote.
(B) "Chevron Group" means Chevron, Chevron's Affiliates and the directors,
officers and employees of all of them.
(C) "Chevron Licensed Marks" has the meaning given in Section 7.1.
(D) "Chevron Confidential Information" has the meaning given in Section 11.7.
(E) "Government Official" means any officer or employee of any government
(including federal, state, local municipal and national governments, and any
governmental department, agency, company or other instrumentality) or Public
International Organization, or any political party official or any candidate for
political office.
(F) "Grant Funds" has the meaning given in Section 2.1.
(G) "Party" means Chevron or Recipient and "Parties" mean both of them.
(H) "Personal Data" means any information that can be used directly or indirectly,
alone or in combination with other information, to identify an individual.
City of El Segundo Grant Agreement 2013
W
(I) "Program" means Recipient's Economic and Business Development Program as
described in Exhibit A.
(J) "Program Report" has the meaning given in Section 5.5(A).
(K) "Public International Organization" means an international organization formed
by states, governments, or other public international organizations, whatever the
form of organization and scope of competence.
(L) "Recipient Group" means Recipient, Recipient's Affiliates, subcontractors, and
directors, officers, employees and other personnel of all of them, and any person
acting on behalf of any of them in connection with this Agreement.
(M) "Recipient Licensed Marks" has the meaning giving in Section 7.2.
(N) "Term" has the meaning given in Section 3.1.
1.2 Exhibits.
(A) The Exhibit A — Program Description that is attached to the body of this
Agreement is an integral part of this Agreement and is incorporated by reference
into this Agreement.
(B) If a conflict exists between the body of this Agreement and the Exhibit A —
Program Description, the body prevails to the extent of the conflict.
THE GRANT
2.1 Chevron will provide a grant to Recipient of two hundred thousand dollars ($200,000.00)
(US) on the terms and conditions of this Agreement (the "Grant Funds ") and requests that
the Grant Funds be used in support of the Program.
2.2 Any additional funds or goods or services by Chevron must be approved by Chevron in
advance and in writing.
EFFECTIVENESS AND TERMINATION
3.1 Term. This Agreement is effective from the Effective Date until the completion of the
Program or expenditure of all Grant Funds, whichever first occurs, unless terminated
earlier as provided in this Agreement ( "Term ").
3.2 Early Termination. Recipient or Chevron may terminate this Agreement in accordance
with Section 4.4 and Section 6.5.
ADDITIONAL OBLIGATIONS
4.1 Warranty. Recipient represents and warrants for itself and on behalf of Recipient Group
that no event has occurred prior to the Effective Date which, had it occurred after the
Effective Date, would constitute a violation of Section 4.2 or 4.3.
4.2 Conflicts of Interest. No member of Recipient Group may (A) give to or receive from
any director, employee or agent of Chevron or its Affiliate in connection with this
City of El Segundo Grant Agreement 2013
77
Agreement, any gift, entertainment or other benefit of significant cost or value, or any
commission, fee or rebate or (B) without giving prior written notice to Chevron enter into
any business arrangement with any director, employee or agent of Chevron or its Affiliate
(other than as a representative of Chevron or its Affiliate).
4.3 Improper Influence. No member of Recipient Group may offer or make any payment,
or offer or give anything of value to any Government Official, any immediate family
member of a Government Official or any political party to influence the Government
Official's or organization's decision, or to gain any other advantage for Chevron Group,
Recipient Group or any of them arising out of this Agreement. In addition, no member of
Recipient Group shall use the Grant Funds to offer or make any payment or offer or give
anything of value to any person if the member knows or has reason to believe that any
portion of the payment or gift will be given directly, indirectly or through a third party to
any Government Official, any immediate family member of any Government Official or
any political party.
4.4 Reporting Violations, Reimbursement and Termination. Recipient shall immediately
notify Chevron of any violation of Sections 4.2 or 4.3 or breach of the warranty set out in
Section 4.1. In addition to any other remedies to which Chevron may be legally entitled
and notwithstanding termination of this Agreement, Recipient shall reimburse or issue a
credit to Chevron equal to any benefit that was realized or paid in violation of these
Sections. Chevron has the right to terminate this Agreement at any time for any violation
of Section 4.2 or 4.3 or breach of warranty set out in Section 4.1.
4.5 Records Retention and Right to Audit. Recipient shall retain, and ensure that other
members of Recipient Group retain, all records related to this Agreement until at least
twenty -four months from the end of the calendar year in which this Agreement is
terminated. Chevron (or its representative) may inspect all records at any time within the
stated retention period to determine Recipient's compliance with the terms of this
Agreement. For the records pertaining to taxes or Recipient's tax - exempt status,
Recipient and Recipient Group shall maintain and Chevron may inspect such records for
so long as the longest applicable statute of limitations remains open.
4.6 Data Privacy. Recipient will process all Personal Data it processes on behalf of Chevron
in accordance with all applicable laws and Chevron's reasonable requests with respect to
protecting Personal Data, including but not limited to: restricting employee and
agent/subcontractor access to Personal Data, following Chevron's instructions in
connection with processing Personal Data, not disclosing Personal Data to any third party
without Chevron's written permission, applying appropriate security measures to protect
Personal Data, and deleting any Personal Data in its possession or control at the expiry or
termination of this Agreement unless otherwise agreed between the Parties. In the event
of any unauthorized, unlawful, and/or unintended processing, access, disclosure,
exposure, alteration, loss, or destruction of Personal Data, Recipient will immediately
notify Chevron and cooperate with Chevron's reasonable requests to investigate and
remediate such incident and provide appropriate response and redress. "Personal Data"
means any information that can be used directly or indirectly, alone or in combination
with other information, to identify an individual.
City of El Segundo Grant Agreement 2013
PAYMENT, USE OF THE GRANT FUNDS, ACKNOWLEDGEMENT, REPORTS AND
OVERSIGHT
5.1 Payment. Chevron will pay the Grant Funds to Recipient by check or wire transfer
within thirty days from the date the Agreement is executed by both Parties.
5.2 Use of Grant Funds. Recipient agrees to use the Grant Funds exclusively for the
Program and in accordance with all applicable laws.
5.3 Intentionally omitted.
5.4 Award. In recognition of Chevron's donation of the Grant Funds, Chevron will be
acknowledged as further described in Exhibit A — Program Description.
5.5 Recipient Program Update Report and oversight site visits.
(A) Recipient shall provide Chevron with detailed written end of the year report
regarding the status of the Program (the "Program Report ").
(B) Recipient shall make commercially reasonable efforts to accommodate any
person identified by Chevron to conduct a site visit of the Program.
TAXES
6.1 Recipient represents that it is a political subdivision of the State of California and is a tax -
exempt entity. Recipient represents that any contribution to the City of El Segundo will
be considered a charitable contribution, as defined by IRS code Section 170(c)(1).]
6.2 Recipient agrees not to expend any Grant Funds in such a way as to constitute an attempt
to influence legislation under Section 501(h) or a taxable expenditure described in IRC
Section 4945, that is: (A) to carry on propaganda or otherwise attempt to influence
legislation; (B) to influence the outcome of any specific public election or to carry on,
directly or indirectly, any voter registration drive; (C) for any grant to an individual
which does not comply with the requirements of IRC Section 4945(d)(3) or (4); or (D)
for any purpose other than one specified in IRC Section 170(c)(2)(B), i.e., a religious,
charitable, scientific, literary or educational purpose.
6.3 Recipient is in full compliance with Executive Order 13224 and the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (Public Law 107 -56; also known as the USA Patriot
Act). Recipient will not disburse Grant Funds to any person or organization who, at the
time of signing this Agreement or at the time of payment of any grant, is listed on any of
the following: the United States Treasury — Office of Foreign Assets Control List (also
known as Specially Designated Nationals List or SDN List); the Secretary of State
Terrorist Exclusion List; the United Nations Security Council Committee's "1267 List ";
and the European Union List published by the Council of the European Union
(collectively, the "Terrorist Watch Lists "). Recipient will also not disburse Grant Funds
to any organization with officers or key employees on one of the Terrorist Watch Lists.
Recipient shall assist Chevron in obtaining such documents as shall, in the good faith
judgment of Chevron, be necessary or appropriate to assure Chevron that the contribution
is not directly or indirectly supporting terrorist groups or individuals.
City of El Segundo Grant Agreement 2013
WE
6.4 Recipient shall provide Chevron with immediate written notification of:
(A) any changes in its tax - exempt status described in Section 6.1 above (whether or
not appealed);
(B) inability to expend the Grant Funds for the Program;
(C) any payment (inadvertent or otherwise) to an organization or individual listed on
a Terrorist Watch List;
(D) any payment (inadvertent or otherwise) to an organization with an officer or key
employee listed on a Terrorist Watch List; or
(E) any expenditure from the Grant Funds made for any purpose other than the
Program.
6.5 Chevron may, after notice to Recipient of its intent to do so, cancel its participation in the
Program for which the Grant Funds are granted, in the event Chevron, in its sole
judgment, finds that:
(A) Recipient has failed to make substantial progress in the completion of the
Program;
(B) Recipient has failed to comply with the terms of this Agreement;
(C) such cancellation is necessary to comply with the requirements of law;
(D) Recipient's tax - exempt status described in Section 6.1 is changed in any way.
In the event of cancellation under this Section 6.5, Recipient shall return any unspent
Grant Funds to Chevron within thirty days after cancellation.
6.6 Recipient makes no representation or warranty with respect to the tax treatment of any
payment by Chevron to Recipient whether under this Agreement or otherwise.
6.7 Upon receipt of the Grant Funds, Recipient will provide Chevron with written
confirmation of: the total amount of the gift, the total value, if any, of services or property
that Chevron or any related company received or will receive from Recipient.
6.8 Recipient is responsible for all liabilities or claims for taxes (including income, capital,
sales or use, value added, goods and services, excise, property, personnel, among other
taxes) that any taxing authority claiming jurisdiction over this Agreement may assess or
levy against Recipient relating to this grant or this Agreement. Recipient shall comply
with all applicable tax requirements, file all registrations and reports, and take all actions
necessary to make its tax payments. Chevron is responsible for all liabilities of claims for
taxes that any taxing authority claiming jurisdiction over this Agreement may assess or
levy against Chevron. Chevron will, as appropriate, report, withhold and pay to the taxing
authorities, any taxes levied or assessed on account of this grant or this Agreement.
Chevron will provide Recipient with tax receipts (or other proof of payment if receipts
are not available) for any withheld taxes, but will not reimburse Recipient for these
withheld taxes.
City of El Segundo Grant Agreement 2013
.E
INTELLECTUAL PROPERTY AND TRADEMARK
7.1 Chevron hereby grants to the Recipient a limited non - exclusive license to use the
Chevron trademarks and the corresponding logos as instructed in writing by Chevron (the
"Chevron Licensed Marks ") during the Term in connection with the Program, subject to
the following conditions:
(A) Recipient recognizes the exclusive rights of Chevron and/or its Affiliates in the
Chevron Licensed Marks and will not contest, directly or indirectly, or in any
way impair such exclusive ownership of the Chevron Licensed Marks or aid or
encourage others to do so, both during the Term and afterwards.
(B) Recipient further recognizes that all use of the Chevron Licensed Marks by
Recipient will at all times inure to the benefit of Chevron and /or its Affiliates,
and that Recipient acquires no right, title or interest in or to the Chevron
Licensed Marks except as expressly and temporarily provided in this Agreement.
(C) Recipient must obtain Chevron's prior written approval before using the Chevron
Licensed Marks. Recipient's uses of the Chevron Licensed Marks shall conform
to Chevron's style and usage guides. Chevron may reasonably withhold approval
or require cessation as to any uses by Recipient that do not conform to such
guidelines; Chevron shall provide a copy of such guidelines to Recipient and
shall provide additional information to Recipient regarding the implementation of
said guidelines.
(D) Recipient will make no use of the Chevron Licensed Marks except as specifically
approved in writing by Chevron. Recipient shall immediately withdraw any uses
that Chevron deems improper. In the event Recipient seeks the consent or
approval of Chevron for promotional materials, Chevron shall use its best efforts
to respond promptly. Recipient shall not sublicense or otherwise transfer the use
of the Chevron Licensed Marks to any person or entity.
(E) Upon termination of this Agreement, Recipient shall promptly deliver to Chevron
or destroy all material bearing the Chevron Licensed Marks. In no event shall
Recipient be required to deliver or destroy any materials bearing Chevron
Licensed Marks where:
(1) Chevron is listed as a sponsor along with other sponsors provided that
the materials are not displayed, shown or in any other way used in a
public venue or distributed to anyone other than an employee or
volunteer of Recipient; or
(2) Chevron agrees in writing to allow Recipient to retain such materials for
use in subsequent years.
7.2 Recipient's Trademarks. Recipient hereby grants to Chevron a limited non - exclusive
license to use the Recipient trademarks and the corresponding logos as instructed in
writing by Recipient (the "Recipient Licensed Marks ") during the Term in connection
with the Program, subject to the following conditions:
City of El Segundo Grant Agreement 2013
(A) Chevron recognizes the exclusive rights of Recipient and/or and the subsidiaries
and affiliates of Recipient in the Recipient Licensed Marks and will not contest,
directly or indirectly, or in any way impair such exclusive ownership of the
Recipient Licensed Marks.
(B) Chevron further recognizes that all use of the Recipient Licensed Marks by
Chevron will at all times inure to the benefit of Recipient and/or its Recipient
Affiliates, and that Chevron acquires no right, title or interest in or to the
Recipient Licensed Marks except as expressly and temporarily provided in this
Agreement.
(C) Chevron shall immediately withdraw any uses that Recipient demonstrates to
Chevron to be improper. In the event Chevron seeks the consent or approval of
Recipient for promotional materials, Recipient shall use its best efforts to respond
promptly. Other than to a Chevron Affiliate, Chevron shall not sublicense or
otherwise transfer the use of the Recipient Licensed Marks to any person or
entity.
(D) Upon termination of this Agreement, Chevron shall cease use of the Recipient
Licensed Marks.
7.3 Notwithstanding the foregoing, Chevron shall be permitted and retains a right to refer to
Recipient and /or use Recipient Licensed Marks to identify Recipient as the beneficiary
and recipient of the Grant Funds.
GOVERNING LAW AND RESOLUTION OF DISPUTES
8.1 Governing Law. This Agreement and the subjects contain in it are governed by and
interpreted under the laws of the State of California, without regard to its choice of law
rules.
8.2 Resolution of Disputes. If any dispute arises out of or in relation to this Agreement and
if the dispute cannot be resolved by direct negotiations, either Party may initiate
mediation by giving notice to the other. If the Parties fail to resolve the dispute within
sixty days from notice of mediation, either Party may initiate binding arbitration in
accordance with this Section 8.2. The place of arbitration will be San Ramon, California.
One arbitrator (or three arbitrators if the monetary value of the Dispute is more than
US$5,000,000 or its currency equivalent) will conduct the arbitral proceedings, in
English, in accordance with United Nations Commission on International Trade Law
( "UNCITRAL ") Arbitration Rules. The American Arbitration Association is the
appointing authority (in the case of disputes involving all U.S. parties). The International
Centre for Dispute Resolution is the appointing authority (in the case of disputes
involving a non -U.S. party). The arbitration award is final and binding and must be
issued within three months from completion of the hearing, or as soon as possible
thereafter.
INDEMNIFICATION
9.1 Recipient shall indemnify, defend, protect and hold harmless Chevron Group, its
successors and assigns from and against any and all third party claims, damages,
liabilities, costs and expenses, including reasonable legal fees and expenses arising
City of El Segundo Grant Agreement 2013
FA
out of or related to Recipient's performance of and obligations and representations
under this Agreement.
INSURANCE
10.1 Without in any way limiting each Party's indemnification obligations under this
Agreement each Party shall maintain, at all times during the Term, the insurance required
by applicable law.
GENERAL PROVISIONS
11.1 Proper Authority. Each of the Parties and their officers represent and warrant that they
are authorized to enter into this Agreement and execute the same without further
authority.
11.2 Prior Agreements. This Agreement comprises the complete and exclusive agreement
between the Parties regarding the subject matter of this Agreement and, except as
provided in this Section 11.2, supersedes all oral and written communications,
negotiations, representations or agreements in relation to that subject matter made or
entered into before the Effective Date.
11.3 Amendment. No amendment to this Agreement is effective unless made in writing and
signed by duly authorized representatives of all the Parties.
11.4 Waiver. Any failure of either Party to pursue remedies for breach of this Agreement does
not constitute a wavier by such compliant Party of any breach of this Agreement by the
non - compliant Party, or raise any defense against claims against the non - compliant Party,
for breach of this Agreement. The waiver or failure to require the performance of any
agreement or obligation contained in this Agreement, or failure to pursue remedies for
breach of this Agreement, does not waive a later breach of that agreement or obligation.
11.5 Notices. All notices required or permitted under this Agreement must be in writing and
delivered by mail (postage prepaid) or by hand delivery to the address of the receiving
Party set out in the signature page to this Agreement. Notices sent by email are
ineffective. Notices are effective when received by the recipient during the recipient's
regular business hours. Notices which do not comply with the requirements of this
Agreement are ineffective, and do not impart actual or any other kind of notice.
11.6 Assignment. Neither Party may assign its rights or obligations under this Agreement
without the prior written consent of the other Party except that Chevron may assign this
Agreement to its Affiliates.
11.7 Confidentiality. Recipient shall treat all information arising out of or provided to
Recipient under this Agreement ( "Chevron Confidential Information ") as valuable,
proprietary and confidential and shall not disclose, and shall ensure that all members of
Recipient Group do not disclose, any such Chevron Confidential Information to any other
person without the prior written consent of Chevron.
11.8 Relationship of Parties. Each Party is independent and no partnership, joint venture or
agency relationship shall be deemed to be formed under this Agreement. Neither Party
City of El Segundo Grant Agreement 2013
51
shall have the right, power or authority to in any way bind the other to any contract or
other obligation.
11.9 Third Party Rights. No person who is not a Party to this Agreement has any rights
under this Agreement or may enforce any provision in this Agreement.
11.10 Severability. Each provision of this Agreement is severable and any determination of
invalidity does not affect those portions of this Agreement that are valid.
11.11 Survival. All provisions in this Agreement containing representations, warranties,
releases, defense obligations and indemnities, and all provisions relating to tax, audit,
confidentiality, conflict of interest, improper influence, intellectual property and
trademarks, insurance, disclaimer of certain remedies, limitations of liability, ownership
or use or return of Confidential Information, retention and inspection of records, dispute
resolution and governing law, and all causes of action which arose prior to completion or
termination, survive indefinitely until, by their respective terms, they are no longer
operative or are otherwise limited by an applicable statute of limitations.
11.12 Public Announcements. Recipient shall not issue any public announcement or statement
concerning this Agreement without obtaining Chevron's prior written consent. Chevron
may disclose that it has donated the Grant Funds to Recipient for the Program without
any consent from Recipient.
11.13 Counterparts. This Agreement may be executed in multiple counterparts, all of which
together shall be considered one and the same agreement.
PROHIBITED PARTIES AND TRANSACTIONS
12.1 Chevron is a United States company with a policy requiring it to comply with all
applicable laws, including economic sanctions and trade restrictions imposed by the
United States government. Chevron has undertaken to provide its parent organization
with any information relevant to its potential involvement with any party that may be the
target of such sanctions and restrictions. Accordingly, Recipient shall provide Chevron
with reasonable advance notice if any of Recipient's or Recipient's affiliates,
subcontractors, directors, officers, employees and other personnel associated with the
services performed under this Agreement which may be any of the following:
(A) The target of, or owned or subject to control by any country, institution,
organization, entity or person that is the target of, economic sanctions and trade
restrictions imposed by the United States government.
(B) Debarred or otherwise excluded or declared ineligible to participate in U.S.
government contracts or contracts, grants or other programs financed in whole or
in part by the U.S. government.
(C) Listed by the U.S. Departments of Commerce or State as an entity with which
U.S. Persons may not engage in export or re -export related transactions.
IMPORTANT NOTICE: THIS AGREEMENT CONTAINS PROVISIONS REGARDING
INDEMNITIES AND WARRANTIES THAT EXPRESS THE AGREEMENT OF THE PARTIES
CONCERNING CLAIMS ARISING OUT OF THIS AGREEMENT.
City of El Segundo Grant Agreement 2013
:,
The Parties have executed this Agreement in duplicate as evidenced by the following signatures of
authorized representatives of the Parties:
CHEVRON U.S.A. INC.
Signature:
Name: Linda D. Padon
Title: Attorney in Fact
Date:
ADDRESS FOR NOTICES:
CITY OF EL SEGUNDO
Signature:
Name: Greg Carpenter
Title: City Manager
Date:
Chevron U.S.A.Inc.6001 Bollinger Canyon Road, City of El Segundo
SR6101 ✓3184 350 Main Street
San Ramon, CA 94583 El Segundo, CA 90245
Attention: Linda D. Padon, General Manager,
Public Policy & Corporate
Responsibility
City of El Segundo Grant Agreement 2013
Attention: Greg Carpenter, City Manager
10
:,
EXHIBIT A — PROGRAM DESCRIPTION
Lnevron
Social investment partnership application wo
Please complete and return this application form. You do not need to provide a significant level of detail: as a
guide, two to three pages is ideal. When we receive your form, we will evaluate your application and respond to
let you know the outcome. We may contact you in the interim for further information if we need it.
Please complete all questions and provide the documentation requested to allow us to fully evaluate your request
for funding. Incomplete information may delay our ability to respond to you in a timely way.
Section t
Name of Car amzation: City of El Segundo Name of Primary Contact: Greg Carpenter
Mailing Address: 350 %lain Street El Segundo, CA 90245
Phone Number: 310 - 524 -2301 Website Address: «-%,t°v4.else o.or , %%- ww.else dobusiness.com
Email Address: gcarpentR@elsegLmdo.org
Name and Type of Opportunity (Prograun. Project or Event): City of El Segundo Economic and
Business Development Program
Opportumity Description_ A pragratn by the City of El Segundo to retain and expanding the existing
business base whine also expanding El Segundo's business diversity to new industry segments (i.e.
creative office) while reduciug unemployment and blighting conditions within our community.
Organization's Mission Statement: The City of El Segundo is committed to the attraction, expansion
and retention of our business base through a pro - business climate which includes collaborative
problem- sohing for business success while balancing the needs of our residents and maintaining a
naHih, of life that is second to none.
Amount offunding Requested from Chevron: $200,000
Total Program/Project/Event cost: 5610,000 (City, Chevron and other corporate funding) over 2 year
period
Other Sources of Funding (knoinm and anticipated): City General. Fund and partial funds match from
in -town businesses
Project Timing and Anticipated Length ofCommittnent: I years %vith Chevron funding
Have you applied for, or received. funding from Chevron previously? \o, not through the Social
Investment Partnership
Issue focus area
Which of the following best describes your project's focus area? (Check the appropriate box}:
❑ STEM Education
❑ CareerNocattonal. Training
® Small Business Support
The project idea
What are the project's objectives? Hon will these objectives be achieved?
The overarching function of the Economic and Business Development Program are to promote
sustainable growth in each of the business sectors of El Segundo including: commercial sector east
City of El Segundo Grant Agreement 2013
11
W.
Chevron
of Sepulveda Avenue, Smoky Hollow District and the Downtown Corridor. This primary objective
is accomplished by focusing on three areas: Business Retention, Business Expansion and Business
Attraction.
The specific tasks that .support these focus areas include: site selection assistance, acting as an
ombudsman (championing a specific project through the entitlemenupermitting process), citcwride
and project specific marketing (business attraction, existing business promoting marketing,
development of a public facility corporate branding program), business outreach to determine if a
rapid response and identification of specific resources is required for expansion or retention, and
other long term projects that would add value to a specific sector (i.e. the Smoky Hollow review by
the Urban Land Institute to determine hove to the City can best position itself for market forces
penetrating the district). Recently, the Economic Development Advisory Council (EDAC)
unanimously decided to retain a public relations firm to `tell the story' of El Segundo's pro - business
climate and exceptional quality of life. Currently, E1 Segundo is challenged by many business
decision makers not knowing where El Segundo is located and how it compares to other
communities in the Los Angeles area and more specifically West Los Angeles and the South Bay.
The EDAC believe this public relations campaign will provide the advantage needed to draw the
attention of desirable businesses to fill space previously occupied by defense related contractors and
companies. This infusion of businesses would also create further diversification of El Segundo's
business base and be less susceptible to .substantial reductions in jobs from any one particular
industry.
Promotion of sustainable growth in El Segundo is critical in light of the completion of the
community business base. E1 Segundo has traditionally been dominated by the defense industry; the
same industry that has and continues to decline due to shrinking Federal budgets. The rear -over-
year loss of jobs has caused El Segundo and the South Bay to experience hardship through
employment loss and reduced municipal revenues. These losses have caused further loss of services
to residents and reduced city services. Without a concerted effort to address the lost jobs, further
deterioration of City services and infrastructure is sure to result.
Community impact
Who will benefit from the project and hove many beneficiaries will you reach? How will your project
improve quality of life for undersen,ed communities?
The City of El Segundo and its residents would be the primary beneficiaries by rebuilding a once
robust business base that was powered by the residents of El Segundo and the South Bay. Residents
of the South Bay will benefit by increased opportunity at re- employment. By specifically targeting
uriyate reinyestmeut in the form of increasing the business base, El Segundo and the South Bay can
lower unemployment and foreclosure rates. The underlying effect will stabilize and ultimately
increase quality of life and property- values; further staving off poverty and increases in
under.served communities vrithirr the South Bay.
The impact of this Program will directly impact the 198 small businesses in the downtown area and
300 businesses in the Smoky Hollow district of El Segundo.
City of El Segundo Grant Agreement 2013
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Chevron involvement
What opportunities. if any, exist for increased Chevron involvement? (Eg general or skilled volunteerism
opportunities. speakers. or other creative ways to engage Chevron's people and resources.)
The City of El Segundo Economic and Business Development Program would appreciate the
opportunity to leverage Chevron presence and prominence in a number of ways. These requests
would be made over the two year funding period and may include: usage of corporate facilities for
events (i.e. business development seminars, meetings), participation in business development forums
by facility staff, video clips, photos and any other non - confidential media for incorporation into
marketing materials, co- funding of parking strategies, signage for the Smoky Hollow district
directly adjacent (north side) of Chevron's El Segundo Refinery.
Public awareness
How will Chevron be identified with your organization? Do you plan to involve any other partners or
stakeholders in this project? If so, please describe who and in what capacity.
The City of El Segundo Economic and Business Development Program can include Chevron's logo
as a "Corporate Partner" on future marketing brochures, banners and other visual medium
including ouliuelvirtual presence and social media campaigns. Other opportunities may include
placement of lago / branding on public facilities and light standard banners along and through the
Downtown Corridor. For specific business development /outreach events, Chevron logwbrand would
be included as a major sponsor including opportunities to provide for speaking about Chevron,
economic development and the community.
The organization
Tell us about your organization. What knowledge, experience or capacity does it have that gives it
confidence it can successfully implement the proposed project?
The City's leadership establishes policy and makes decisions that guide the community. The
direction and consistency of these policies and decisions sends a message to the business community
about the City's openness to development and business growth. While some communities have a
reputation of being divisive and unfocused, El Segundo has a track- record of maintaining and
developing business- friendly city policies. The primary Body that makes recommendations to the
City Council is the Economic Development Advisory Council which is comprised of 12 members
that represent various aspects of the community. These members collectively boast in excess of 300
years of experience in business fundamentals, finance, real estate development, strategic planning,
consensus building and leadership. Strategic planning is a primary component of this Body in the
field of economic and business development. The day- to-day duties outlined in the Strategic Plan are
carried out by a full time, seasoned economic developer. In addition, the economic developer
monitors and provides the EDAC with routine reports on the progress of identified metrics of the
Plan. Finally, a compliment of strategic resources within the community are also available to assist
with specific resources on unique projects which may include the South Bay Workforce Investment
Board, Small Business Development Center, Los Angeles Economic Development Corporation and a
number of others are available for more specific assistance.
Measuring results
City of El Segundo Grant Agreement 2013 13
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What are the untended results of the project and what plans do you have for project monitoring and
evaluation?
The long term goals of the project would directly correlate with the organizations mission
statement: retain and expand EI Segundo's business base through business diversification, utilizing
a pro - business climate and partnering with a public relations firm to `get the word out' out El
Segundo.
Program staff will conduct at least 50 visits per year to local businesses. The primary objective of
these visits is to identify struggling businesses and provide resources needed to successfull} retain
(and in some cases expand) the business while remaining a part of the existing business base.
Program staff will successfully attract new businesses to reduce retail storefronts in the Downtown
area, creative office industry tenants to the Smoky Hollow district and target commercial vacancies
on the east side of Sepulveda Bh•d. with new and expanding (existing) office and manufacturing
firms. The retail - oriented business will provide an immediate influx of job creation and a revenue
source to the Citv. This will include .staff attendance and City presence and targeted industry trade
shows and networking events. The business -to- business firms will provide job creation for the
community's skilled workforce.
Virtual presence maintenance, updates and greater presence campaign. Under this activity, the
existing wivw.elsegundoburness.com website will be updated and maintained on a more frequent
basis (providing up to date information for those seeking information about El Segundo's business
climate). Further virtual communication will span through Constant Contact and other social media
(i.e. Twitter, Face Book),
Cite Marketing. +Branding will continue and expand to identified and specific industries on a
regional, national and global level. Marketing format may include any /all of the following: ad
placements (paper and virtual publications), press releases, attendance at trade shows and
networking events, seek targeted awards from notable organizations for high level, low cost
exposure (i.e. Most Business Friendly City Award).
Implement findings and recommendations as approved by the El Segundo City Council from the
Urban Laud Institute's Technical Assistance Panel results for the Smoky Hollow- district.
Please also see `target metrics' section.
Sources of funding
List current sources of unrestricted and restricted funding (e-g-, from corporations. foundations,
government, individuals, etc.) for the organization and for the project proposed. Is the project sustainable
beyond the period of Chevron funding? If so, how- will sustainability be achieved?
590,000 annually plus one full time staff person from City of El Segundo
S25,000 oue -time verbally committed funds from local corporations with an opportunity to renew
annually for at least through year two.
Project/Program is considered sustainable after period of Chevron funding. The requested funding
from Chevron will cover one -time and start up costs (i.e. w-ebsite update./development, establishment
of a branding campaign, etc.) Chevron's contribution will provide for higher visibility of marketing
and allow limited staffing resources to focus more on maintenance and updates of virtual presence.
Additionally. Chevron's contribution will also be applied to strategic. /long range planning that
includes specific and attainable goals and measurable outcomes to ensure staff efforts continue to
address key goals and concepts.
When you submit your application form, please also provide the following:
• The completed target metrics form
City of El Segundo Grant Agreement 2013 14
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