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2014 Sep 16 - CC PACKETAGENDA EL SEGUNDO CITY COUNCIL EMERGENCY OPERATIONS CENTER — 348 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, SEPTEMBER 16, 2014 — 5:00 PM 5:00 P.M. SESSION CALL TO ORDER ROLL CALL PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. SPECIAL ORDER OF BUSINESS: CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et sue.) for the purposes of conferring with the City's Real Property Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators; as follows: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code §54956.9(d) (3): -1- matter 1. City of El Segundo vs. City of Los Angeles, et.al. LASC Case No. BS094279 CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code §54956.9(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 PUBLIC EMPLOYEMENT (Gov't Code § 54957) -0- matter CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6): -8- matters 2 1. Employee Organizations: Police Management Association; Police Officers Association; Police Support Services Employees Association; Fire Fighters Association; Supervisory and Professional Employees Association; City Employees Association; Executive Management Group (Unrepresented Group); Management/Confidential Group (Unrepresented Group) Agency Designated Representative: Steve Filarsky and City Manager CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0- matters 3 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, SEPTEMBER 16, 2014 - 7:00 P.M. 7:00 P.M. SESSION CALL TO ORDER INVOCATION — Lee Carlile, Pastor, United Methodist Church PLEDGE OF ALLEGIANCE — Council Member Atkinson 4 PRESENTATIONS a) Proclamation —United Methodist Church 100th Anniversary 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) 1. Consideration and possible action (Continued Public Hearing) regarding the Fiscal Year 2014 -2015 Budget (including all City Revenues and Expenditures), and Adoption of Resolutions approving Appropriation Limit and Preliminary Budget as amended. (Copies of the Fiscal Year 2014 -2015 Preliminary Budget can be found in the Library, City Clerk's office, and on the City's website.) (Fiscal Year Impact: Total Revenues of $133,522,300; Total Expenditures of $151,846,500, Prior Year Designations of $18,324,200; General Fund Revenues of $60,642,700, Expenditures of $64,043,100, Prior year Designations of $3,400,400) City of El Segundo. Recommendation — 1) Continue the Public Hearing and receive public testimony. Adopt the Resolution approving and adopting the Fiscal Year 2014 -2015 Operating Budget. 2) Incorporate "Exhibit A — Fiscal Year 2014 -2015 Change List of Budget Revisions in all Funds" into the Adopted Budget and transfer any fiscal year 2013 -2014 General Fund surplus into the Economic Uncertainty Fund in fiscal year 2014 -2015 once the fiscal year 2013 -2014 audit is complete. 3) Adopt the Resolution approving and adopting the Appropriations Limit for fiscal year 5 2014 -2015, as presented. 4) Alternatively, discuss and take other possible related action to this item. 2. Consideration and possible action to amend El Segundo Municipal Code ( "ESMC ") § §15 -1 -6, 15 -6A -2, 15- 6A -11, 15 -6D -5, 15 -6D -13 and 15 -8 -2 to add a definition of "Emergency Shelters "; to allow Emergency Shelters as a Permitted Use in the Light Industrial (M -1) Zone; to allow Emergency Shelters as a Conditional Use in the Medium Manufacturing (MM) Zone; to establish Emergency Shelter Development Standards; and, to remove the managed production of resources on Agricultural Lands as a permitted use in the Open Space (O -S) Zone. Applicant: City of El Segundo. (Fiscal Impact: None) Recommendation — 1) Open the Public Hearing; 2) Discussion; 3) Introduce, and waive first reading of an Ordinance for Environmental Assessment No. EA -1066 and Zone Text Amendment No. ZTA 14 -02; 4) Schedule second reading and adoption of the Ordinance on October 7, 2014; 5) Alternatively, discuss and take other possible related action to this item. C. UNFINISHED BUSINESS D. REPORTS OF 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. Warrant Numbers 3002389 through 3002568 on Register No. 23 in the total amount of $651,836.90 and Wire Transfers from 8/18/14 through 8/31/14 in the total amount of $842,603.79. Recommendation — Approve Warrant Demand Register and authorize staff to release. Ratify Payroll and Employee Benefit checks; checks released early due to contracts or agreement; emergency disbursements and /or adjustments; and wire transfers. 4. Regular City Council Meeting Minutes of August 19, 2014, and Special City Council Meetinq Minutes of September 9, 2014. Recommendation — Approval. 5. Consideration and possible action regarding approval of ongoing professional service agreements and blanket purchase orders for FY 2014- Gel 2015 in excess of $25,000 for various departments; and possible action to waive the formal bidding process and authorize the continued purchase of various goods and services as described below. (Fiscal Impact: General Fund $1,735,570 including $5,000 Library Developer Fees; Asset Forfeiture Fund $13,000; Prop A Fund $30,000; Water Enterprise Fund $122,750; Wastewater (Sewer) Enterprise Fund $26,750; Golf Course Enterprise Fund $96,000; Workers' Compensation Fund $97,749; Revenue /Expenditure Balance Sheet Account $200,000; Public Works Full Time Salary Accounts General Fund, Water & Wastewater Enterprise Funds $200,000) Recommendation — (1) Authorize the City Manager to execute an amendment to Agreement No. 4095, in a form approved by the City Attorney, with High Point Strategies, LLC to (1) extend the term of the agreement to September 30, 2015; (2) authorizes payment for services up to $75,000 (General Fund); and (3) take such additional, related, action that may be desirable. (2) Authorize the City Manager to execute an amendment to Agreement No. 4242, in a form approved by the City Attorney, with to (1) extend the term of the agreement to September 30, 2015; (2) authorizes payment for services up to $60,000 (General Fund); and (3) take such additional, related, action that may be desirable. (3) Authorize the City Manager to extend ongoing service agreements with Baker & Taylor Information Services for supplying books and other library materials, and issuance of blanket purchase order not to exceed $86,800 in FY 2014 -2015. (General Fund including $5,000 Library Developer Fees) (4) Authorize the City Manager to extend contract #2235 to Innovative Interfaces, Inc., for library computer network system maintenance and issuance of blanket purchase order not to exceed $31,500 (General Fund). (5) Authorize the City Manager to extend ongoing service agreements with J. Lee Engineering provides plan check and inspection consulting services for the Building and Safety Division not to exceed $200,000 in FY 2014 -2015 (General Fund). (6) Authorize the City Manager to extend ongoing service agreement with JAS to provide plan check and inspection consulting services for the Building and Safety Division not to exceed $75,000 in FY 2014 -2015 (General Fund). (7) Authorize the City Manager to extend ongoing service agreement with CSG to provide plan check and inspection consulting services for the Building and Safety Division not to exceed $75,000 in FY 2014 -2015 (General Fund). (8) Authorize the City Manager to extend ongoing service agreement with Scanning Service Corp. to provide service of scanning plans, permits & microfilm 7 to digital for Laserfiche document imaging system for the Building and Safety Division not to exceed $20,000 and Planning Division not to exceed $23,000 in FY 2014 -2015 for a combined total amount of $43,000 (General Fund). (9) Authorize the City Manager to extend ongoing service agreement with Pacific Municipal Consultants (PMC) to provide professional planning consulting and interim staffing services for the City's Planning Division, not to exceed $35,000 in FY 2014 -2015 (General Fund). (10) Authorize the City Manager to extend ongoing service agreement with Tierra West Advisor's Inc. to provide professional planning consulting and interim staffing services for the City's Planning Division, not to exceed $35,000 in FY 2014 -2015 (General Fund). (11) Authorize the City Manager to extend ongoing service agreements with Westchester Medical Group /Center for Heart and Health to provide annual safety employees fitness for duty and executive physical examinations not to exceed $60,000 in FY 2014 -2015 (General Fund). (12) Authorize the City Manager to extend ongoing service agreement with York Risk Services Group to administer workers' compensation claims not to exceed $97,749 in FY 2014 -2015 (Workers' Compensation Fund). (13) Authorize the El Segundo Fire Department to waive the bidding process per El Segundo Municipal Code §1 -7 -10 to purchase medical and pharmaceutical supplies, and piggyback on the City of El Cajon's Bound Tree Medical, Inc. ( "Bound Tree ") Bid #005 -12, and authorize issuance of a blanket purchase order to Bound Tree for medical and pharmaceutical supplies not to exceed $27,000 in FY 2014 -2015 (General Fund). (14) Authorize the City Manager to execute a one -year contract with All Cities Management Company to provide crossing guard services for the El Segundo School District not to exceed $80,000 in FY 2014 -2015 (General Fund). (15) Authorize all El Segundo City Departments to waive the bidding process per El Segundo Municipal Code § 1 -7 -10 to purchase office supplies, related products and off -site office services, and piggyback on The Cooperative Purchasing Network (TCPN) Contract # R5023 awarded to Office Depot, and authorize issuance of a citywide open purchase order to Office Depot for office supplies, related products and off -site office services under the agreement not to exceed $65,000 in FY 2014 -2015 (General Fund). (16) Authorize all El Segundo City Departments to waive the bidding process per El Segundo Municipal Code § 1 -7 -10 to purchase City -wide advertising and authorize issuance of a citywide open purchase order to El Segundo Herald. Off - site services include Public Hearing notices, Request for Proposal notices, Department advertising and publishing, printing and distribution of the Recreation and Parks brochures not to exceed $70,000 in FY 2014 -2015 (General Fund). (17) Authorize the issuance of a blanket purchase order to Lane Donovan Partners, LLC (Agreement #3399) to provide management services for The Lakes Golf Course for an amount not to exceed $96,000 in FY 2014 -2015 (Golf Course Enterprise Fund). (18) Authorize the City Manager to extend Agreement # 4096 with TruGreen Landcare in a form approved by the City Attorney and issuance of a blanket purchase order to provide weekly landscape services for an amount not to exceed $160,000 in FY 2014 -2015 (General Fund). (19) Authorize staff to continue to purchase gasoline and diesel fuel for City vehicles and equipment through the use of spot market purchasing in an amount not to exceed $315,000 in FY 2014 -2015 (General Fund = $250,000; Asset Forfeiture Fund = $13,000; Prop "A" Fund = $30,000; Water Enterprise Fund = $9,000; Wastewater (sewer) Enterprise Fund = $13,000). (20) Authorize the issuance of a blanket purchase order to Metron Farnier & Actaris in an amount not to exceed $100,000 in total for the purchase of single jet water meters for the City's water system in FY 2014 -2015 (Water Enterprise Fund). (21) Authorize the issuance of a blanket purchase order to Blue Diamond Materials, a division of Sully Miller Contracting Company in an amount not to exceed $30,000 for the purchase of asphalt paving materials for Street Maintenance Division projects in FY 2014 -2015 (General Fund). (22) Authorize the issuance of a blanket purchase order to DataProse (Agreement # 3227) to provide Water and Sewer divisions utility bill print and mail services for an amount not to exceed $27,500 in FY 2014 -2015 (Water & Wastewater (sewer) Enterprise Funds). (23) Authorize the City Manager to extend the ongoing professional service Agreement # 4269 with Aerotek for providing temporary staffing service for the Public Works Department not to exceed $200,000 in FY 2014 -2015 (General Fund, Water & Wastewater (sewer) Enterprise Funds). (24) Authorize the city manager to extend ongoing services agreement #4568 with Westcon Engineering for engineering plan check services for the Public Works Department not to exceed $100,000 in FY 2014 -15 (Revenue /Expenditure Balance Sheet Account Fund). (25) Authorize the city manager to extend ongoing services agreement #4622 with D.R. Consultants and Designers, Inc., for engineering plan check services E for the Public Works Department not to exceed $100,000 in FY 2014 -15 (Revenue /Expenditure Balance Sheet Account Fund). (26) Authorize the City Manager to extend ongoing services agreement #4672 with Geosyntec Inc for storm water compliance program support for the Public Works Department, not to exceed $30,000 in FY 2014 -15 (General Fund). (27) Authorize the City Manager to execute a one -year contract with the Society for the Prevention of Cruelty to Animals Los Angeles for animal sheltering services, not to exceed $28,200 in FY 2014 -2015 (General Fund). (28) Authorize the City Manager to execute a one -year contract with Duncan Solutions (formerly Enforcement Technology Inc.) for processing of parking citations /collections, not to exceed $77,000 in FY 2014 -2015 (General Fund). (29) Authorize the issuance of a blanket purchase order to San Diego Police Equipment Co., Inc. (SDPECI) and Dooley Enterprises, for the purchase of CCI- Speer and Federal ammunition, not to exceed $67,000 in FY 2014 -2015 (General Fund). (30) Authorize the City Manager to execute a one -year contract amendment and /or purchase order with Tyler Technologies for annual software licensing, maintenance, and support not to exceed $41,070 in FY 2014 -2015 (General Fund). (31) Authorize the City Manager to execute a one -year contract and /or blanket purchase order with Active Network for annual licensing, maintenance and support not to exceed $34,000 in FY 2014 -2015 (General Fund). 6. Consideration and possible action to award a Professional Services Agreement to Willdan Energy Solutions for implementation of Energy Efficiency Strategic Planning Activities using grant funds recently awarded by Southern California Edison. (Fiscal Impact: $100,125 in grant fund award) Recommendation — 1) Authorize the City Manager to execute an agreement with Willdan Energy Solutions, in a form approved by the City Attorney, for implementation of the Energy Efficiency Strategic Plan, Phase 3 activities; 2) Alternatively, discuss and take other possible action related to this item. 7. Consideration and possible action to authorize the City Manager to execute a 3 -year License Agreement in a form approved by the City Attorney with the El Segundo Cooperative Nursery School to operate a non - profit pre- school at the Clubhouse Building. (Fiscal Impact: Reservation revenues of 10 $2,000 in Fiscal Year 2014/15, $2,500 in Fiscal Year 2015/16, and $3,000 in Fiscal Year 2016/17) Recommendation — 1) Authorize the City Manager to execute an agreement with El Segundo Cooperative Nursery School in a form approved by the City Attorney; 2) Alternatively, discuss and take other possible action related to this item. 8. Consideration and possible action to adopt a Resolution approving plans and Specifications for Sewer Main Improvements at eight locations in the northwest quadrant of El Segundo, predominantly located north of Franklin Ave. and west of Main St. Project No. PW 13 -24. (Fiscal Impact: $800,000.00) Recommendation — 1) Adopt a Resolution approving plans and specifications for the Sewer Main Improvement Project; 2) Alternatively, discuss and take other possible action related to this item. 9. Consideration and possible action to authorize the City Manager to execute a one year License Agreement in a form approved by the City Attorney with Southern California Aquatics to operate a Masters Swim Program. (Fiscal Impact: $6,600 in Reservation Revenues per year) Recommendation 1) Authorize the City Manager to execute an agreement with South California Aquatics in a form approved by the City Attorney; 2) Alternatively, discuss and take other possible action related to this item. 10. Consideration and possible action regarding the adoption of a Conflict of Interest Code required by The Political Reform Act (Government Code Section 81000 et. seq.) rescinding Resolution No. 4778, and adopting a new resolution approving a new Conflict of Interest Code. (Fiscal Impact: None) Recommendation — 1) Adopt resolution; 2) Alternatively, discuss and take other possible action related to this item. 11. Consideration and possible action regarding authorization for the City Manager to execute two (2) one -year agreements in a form approved by the City Attorney with four one -year term extensions, for a maximum total contract length of five years each for RFP No. #14 -07 (On -Call Citywide Low Voltage Wiring Services). (Fiscal Impact: None) _ Recommendation — 1) Authorize the City Manager to execute an agreement in a form approved by the City Attorney with Federal Technology Solutions, Inc. and NC Partners, Inc.; 2) Alternatively, discuss and take other possible action related to this item. 11 12. Consideration and possible action to receive and file this report regarding cleaning and repairing drywall and carpet as well as restoring furniture in the north portion of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC ") §§ 1 -7 -12 and 1 -7A -4. (Fiscal Impact: $37,000.00) Recommendation — 1) Receive and file this report regarding cleaning and repairing drywall and carpet as well as restoring furniture in the north portion of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC ") §§ 1 -7 -12 and 1- 7A-4; 2) Alternatively, discuss and take other possible action related to this item. 13. Consideration and possible action to receive and file this report regarding the emergency repair to remove debris in the attic space of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC ") §§ 1 -7 -12 and 1 -7A -4. Fiscal Impact: $82,354.00) Recommendation — 1) Receive and file this report regarding the emergency repair to remove debris in the attic space of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC ") §§ 1 -7 -12 and 1 -7A -4; 2) Alternatively, discuss and take other possible action related to this item. F. NEW BUSINESS 14. Consideration and possible action to tentatively approve installation of a Class II bike lane on Rosecrans Ave. between Sepulveda Blvd. and Highland Ave. (Fiscal Impact: Undetermined but expected to be minimal staff time) Recommendation — 1) Tentatively approve the installation of a Class II bike lane on Rosecrans Ave. between Sepulveda Blvd. and Highland Ave.; 2) Alternatively, discuss and take other action related to this item. 15. Consideration and possible action to review the water and sewer rate studies, direct staff to commence the Proposition 218 protest procedures regarding potential increases to the City's water and sewer rates and fees. Fiscal Impact: $60,000 for ballot preparation and mailing for water rate increases and sewer rate increases.) Recommendation — 1) Receive water rate study presentation and proposed potable water rate increases; 2) Direct staff to implement the Proposition 218 12 protest ballot procedures for proposed potable water and sewer rate increases; 3) Adopt a resolution establishing procedures for mailing, handling and counting Proposition 218 ballots; 4) Set a public Hearing on November 18, 2014 for Council consideration of the proposed water and sewer rate increases; 5) Alternatively, discuss and take other action related to this item. G. REPORTS — CITY MANAGER H. REPORTS — CITY ATTORNEY I. REPORTS — CITY CLERK J. REPORTS — CITY TREASURER K. REPORTS — CITY COUNCIL MEMBERS Council Member Dugan - 16. Discussion and possible action regarding a request from local business owners Kimberly and Ben Wakefield for deferment of newly established fees for a facility reservation permit at Library Park. (Fiscal Impact: To Be Determined) Recommendation — 1) Determine the outcome of the fee waiver request; 2) Alternatively, discuss and take other possible action related to this item. Council Member Fellhauer — Council Member Atkinson — Mayor Pro Tern Jacobson — Mayor Fuentes — 13 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, and /or conferring with the City Attorney on potential and /or existing litigation; and /or discussing matters covered under Government Code Section §54957 (Personnel); and /or conferring with the City's Labor Negotiators. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) ADJOURNMENT POSTED: DATE: TIME: 3 NAME: U 6/kA- 14 j rortamat 11011 Co of V Oepnbo, Calffornfa i WHEREAS, On April 6,1914, a small group of people met at the home of Mr. and Mrs. H.J. Barber on Concord Street to plan for the formation of the First Methodist Episcopal Church of El Segundo. WHEREAS, The church's articles of incorporation were duly filed on July 17, 1914, and the Reverend Lawrence V. Lucas became its first full -time pastor, leading services in a building on property that later became part of the El Segundo High School campus. WHEREAS, Due to the dramatic growth of the First Methodist Episcopal Church, a decision was made to move to a larger facility which was constructed through a volunteer effort on the southeast corner of Main Street and Mariposa Avenue and formally dedicated Bishop Charles Wesley Burns on January 29, 1928. WHEREAS, The First Methodist Episcopal Church became the Community Methodist Church in 1935 and the United Methodist Church of El Segundo in 1968. WHEREAS, The church's distinctive, mission style building at 540 Main Street has become a landmark in this city, and the church's 100 year history is tightly woven into the fabric of the story of El Segundo. WHEREAS, Under the leadership of its twenty- seventh pastor, the Reverend Lee A. Carlile, the church is now honoring its past and embracing its future as a community of faith in the city of El Segundo. NOW, THEREFORE, on this 16f day of September, 2014, the Mayor and Members of the City Council of the City of El Segundo, California, hereby recognize and commend the United Methodist Church of El Segundo as it celebrates its 100th Anniversary. 0 Y Cj fi �G �WayorSuzanne Fuentes Wayor(Pro 7em Cadjacobson Councif9ilember (DaveAtkinson CounciOl ember JKarie Feffhauer Cound(Wember Mchaef Dugan EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA STATEMENT AGENDA HEADING: Special Orders of Business AGENDA DESCRIPTION: Consideration and possible action (Continued Public Hearing) regarding the Fiscal Year 2014- 2015 Budget (including all City Revenues and Expenditures), and Adoption of Resolutions approving Appropriation Limit and Preliminary Budget as amended. (Copies of the Fiscal Year 2014 -2015 Preliminary Budget can be found in the Library, City Clerk's office, and on the City's website.) (Fiscal Impact: Total Revenues of $133,522,300; Total Expenditures of $151,846,500, Prior Year Designations of $18,324,200; General Fund Revenues of $60,642,700, Expenditures of $64,043,100, Prior Year Designations of $3,400,400) RECOMMENDED COUNCIL ACTION: 1. Continue Public Hearing and receive public testimony. Adopt the Resolution approving and adopting the Fiscal Year 2014 -2015 Operating Budget. 2 Incorporate "Exhibit A — Fiscal Year 2014 -2015 Change List of Budget Revisions in all Funds" into the Adopted Budget and transfer any fiscal year 2013 -2014 General Fund surplus into the Economic Uncertainty Fund in fiscal year 2014 -2015 once the fiscal year 2013 -2014 audit is complete. 3. Adopt the Resolution approving and adopting the Appropriations Limit for fiscal year 2014- 2015, as presented. 4. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1) Exhibit A Fiscal Year 2013 -2014 Change List of Budget Revisions in all Funds 2) Resolution approving and adopting the Operating Budget for Fiscal Year 2014 -2015 and Resolution approving and adopting the Appropriation Limit for Fiscal Year 2014- 2015 FISCAL IMPACT: Total Appropriations of $151,846,500; Revenues of $133,522,300 and prior year designations of $18,324,200. General Fund Appropriations of $64,043,100, Revenues of $60,642,700, Prior Year Designations of $3,400,400) Amount Budgeted: n/a Additional Appropriation: N/A Account Number(s): None ORIGINATED BY: Angelina Garcia, Fiscal Services Manager REVIEWED BY: Deborah Cullen, Director of Fin nce APPROVED BY: Greg Carpenter, City Manage BACKGROUND AND DISCUSSION: 1 FY 2014 -2015 Budget On September 2, 2014 the City Council conducted a Public Hearing on the FY 2014 -2015 Operating Budget. Revisions from the Preliminary Budget are attached to this report and have been included in the final budget to be adopted. Incorporate "Exhibit A — FY 2014 -2015 Change List of Budget Revisions In All Funds" into the Adopted Budget. RESOLUTION NO. A RESOLUTION ADOPTING THE 2014 -2015 FINAL OPERATING BUDGET FOR THE CITY OF EL SEGUNDO AND ADOPTING THE 2014 -2015 CAPITAL IMPROVEMENT BUDGET. The City Council of the City of El Segundo does resolve as follows: SECTION 1: The City Council finds and declares as follows: A. The City Council has reviewed the proposed final Operating Budget ( "Budget ") for fiscal years; B. The Budget is based upon appropriate estimates and financial planning for the City's operations, services, and capital improvements; C. The City Council conducted public study sessions on May 28th. 2014, June 26th 2014, August 4th, 2014 and a public hearing on September 2, 2014, and continued on September 16, 2014; D. All procedural requirements for adopting the City's budget were fulfilled, and the City Council was fully informed regarding the City's current finances, projected revenue, and financial obligations; and E. It is in the public interest for the City Council to adopt the Budget as proposed by the City Manager. SECTION 2: ADOPTION. The Budget attached to this Resolution, and incorporated by reference, is approved and adopted subject only to the authorizations set forth below. Such approval and adoption includes, without limitation, the Position Control Listing of Authorized Positions, Classification and Compensation Plans set forth in the Budget which recognizes new classifications and removes unused classifications. SECTION 3: APPROPRIATIONS LIMIT. A. Article XIIIB of the California Constitution requires the City to set its Appropriations Limit on an annual basis; B. The City's Appropriations Limit may be adjusted annually based upon inflation and population growth. C. The City Council may choose the method of calculating adjustments to the City's Appropriations Limit on an annual basis. For inflation, pursuant to Article XIIIB, § 8(e)(2), adjustments to the Appropriations Limit may be calculated using either the percentage change in per capita personal income from the preceding year or the percentage change in the local assessment roll from the preceding year because of local nonresidential new construction. For population growth, pursuant to Government Code § 7901(b), the City may either use the percentage growth either in its jurisdiction or from the surrounding county. Page 1 of 4 D. Pursuant to Article XIII -B of the California Constitution, and those Government Code sections adopted pursuant to Article XIII -B, § 8(f), the City Council chooses to adjust the City's Appropriations Limit by calculating inflation using the percentage change in the City's assessment roll from the preceding year because of local nonresidential new construction and calculating population growth by using the percentage change in population in Los Angeles County. E. As a result of the adjustments made to the City's Appropriations Limit, the City Council sets the Appropriations Limit for fiscal year at $293,612,281. SECTION 4: BUDGET APPROPRIATIONS. Based upon the Budget, the total General Fund operating budget is $59,651,000. The City Manager, or designee, is authorized to implement the following appropriations for City Departments: DEPARTMENT A140VW Elected Officials $1,015,900 City Manager 1,418,300 City Attorney 449,000 Non Department 4,242,900 Communications Center 1,398,300 Finance 1,844,500 Fire 14,160,100 Human Resources 745,200 Library 2,188,400 Recreation and Parks 5,082,200 Planning and Building Safety 2,996,700 Police 17,999,600 Public Works 5,925,600 Transfers 4,576,400 SECTION 5: CIP APPROPRIATIONS. Based upon the CIP, a total of $2,140,000 is appropriated for Capital Improvement Projects for Fiscal Year. The City Manager, or designee, is authorized to implement the CIP with the following funds and amounts: FUND AMOUNT _ General Fund $3,200,000 Community Development Block Grant $48,500 Wastewater Fund $4,050,000 Water Fund $1,510,000 State Gas Tax Fund $400,000 Page 2 of 4 SECTION 6: MISCELLANEOUS APPROPRIATIONS. The City Manager, or designee, is authorized to implement the following miscellaneous appropriations: FU N D AMOUNT' TRAFFIC SAFETY $200,000 STATE GAS TAX 400,000 ASSET FORFEITURE 888,600 COMMUNITY DEVELOPMENT BLOCK GRANT 140,300 PROP A TRANSPORTATION 292,300 PROP C TRANSPORTATION 116,600 RESIDENTIAL SOUND INSULATION 29,511,600 C.O.P.S. FUND 100,000 LAWA FUND 11,017,900 AQMD Tree Partnership Program 110,000 DEBT SERVICE FUND 540,000 FACILITIES MAINTENANCE 350,000 WATER FUND 26,185,100 SEWER FUND 7,506,300 GOLF COURSE 2,151,600 EQUIPMENT REPLACEMENT 5,279,300 LIABILITY INSURANCE 1,116,300 WORKERS' COMP RESERVE/ INSURANCE 1,897,300 SECTION 7: REAPPROPRIATION. The City Manager, or designee, is authorized to reappropriate any unused appropriations for capital projects, special projects, and grant programs at the close of Fiscal Year 2013 -2014 for the Budget. SECTION 8: FUND OPERATING RESERVES. The City Manager, or designee, may appropriate any remaining revenues at the close of Fiscal Year 2013 -2014 into the applicable Fund operating reserve on September 30, 2014. SECTION 9: BUDGET ADJUSTMENTS. The Budget may be subsequently adjusted as follows: A. By majority vote of the City Council; B. By the City Manager, or designee, for all appropriation transfers between programs and sections within a City department and between appropriation units (e.g., salaries and benefits, services and supplies, and capital outlay) within programs; C. By Department Directors for appropriation transfers between appropriation units within programs; Page 3 of 4 D. Objects code expenditures within appropriation units in a program are not restricted so long as funding is available in the appropriation unit as a whole. SECTION 10: CONTRACTING AUTHORITY. A. The City Manager, or designee, is authorized to bid and award contracts for the equipment, supplies, and services approved in the Budget. B. In accordance with the El Segundo Municipal Code ( "ESMC "), the City Manager is authorized to execute all contracts awarded for equipment, supplies, and services approved in the Budget. C. Notwithstanding any dollar limitation set forth in the ESMC, the City Manager is authorized to execute contracts for purchasing equipment and supplies that are individually identified in the Budget regardless of total cost. The City Manager may, but is not required to, seek additional City Council approval for transactions made pursuant to this Section. D. For all other services, equipment, and supplies, the City Manager is authorized to execute contracts in accordance with the ESMC. SECTION 11: The City Clerk is directed to certify the adoption of this Resolution; record this Resolution in the book of the City's original resolutions; and make a minute of the adoption of the Resolution in the City Council's records and the minutes of this meeting. SECTION 12: This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded. PASSED AND ADOPTED September 16, 2014. ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, City Attorney In Suzanne Fuentes, Mayor Karl H. Berger, Assistant City Attorney Page 4 of 4 CITY OF EL SEGUNDO EXHIBIT A CHANGE LIST OF EXPENDITURE BUDGET REVISIONS - APPROPRIATIONS ALL FUNDS FISCAL YEAR 2014 -2015 ADOPTED BUDGET FISCAL YEAR 2014.2015 BUDGET Total Div Account Proposed Inc (Dee) Approved mc(DCr) Balance Transfers: (900) 2,60( Transfer of General fund to Capital Improvement Fund for George Brett Field Liglding (100) - Increase to CDBG Transfer (3.200) 60C Transfer to "Life Line" (GF to 501 Water Fund) (25,000) 95.000 General Fund (500) 2,500 Preliminary Budget Appropriations inclusive of Transfers Out 1,.100 3,700 ADJUSTMENTS: (3,000) 19,900 Elected Official - City Treasurer 168,600 1,223,100 ' Decrease in Workers Compensation charges 1201 4203 Reduction in Equipment Replacement charge 1201 6207 Council Action - Reduce training budget 1201 6223 Budget Adjustment- Reduce Credit Card Fees to 595,000 1201 6297 Elected Official - City Clerk (57,900) 1.594,500 " Decrease in Workers Compensation charges 1300 4203 Increase in Equipment Replacement charge 1300 6207 Planning & Building Safety (17,500) 547,300 " Decrease in Workers Compensation charges 24xx 4203 Fund for Building Safety Manager 2403 4xxx Reduction in Equipment Replacement charge 24xx 6207 City Manager - IS & HR (64,600) 532,900 " Decrease in Workers Compensation charges 210112505 4203 Reduction in Equipment Replacement charge 2101/2505/3255 6207 Finance 40,000 16,728,000 " Decrease in Workers Compensation charges 25xx 4203 Council Action - Freeze full -time Accounting Technician and back fill with part-time 25xx 4xxx Reduction in Equipment Replacement charge 25xx 6207 Human Resources (5,200) 30,400 " Decrease in Workers Compensation charges 2506 4203 Council Action - Reduce part-time City Receptionist service hours 2506 4xxx Reduction in Equipment Replacement charge 2506 6207 Non - Denarlment (27,500) 1,597,300 Council Action - Fund 100% or Crossing Guards 2901 6405 Increase in Equipment Replacement charge 2901 6207 Police Departmentt (3.000) 16,700 " Decrease in Workers Compensation charges 31xx 4203 Council Action - Reduce staff by No sworn officers 31xx 4xxx Budget Correction - Adjustment to PSO Salaries 31 xx 4xxx Budget Correction - Adjust POA COLA from 1.5% to 2% 31xx 4xxx locrease in Equipment Replacement charge 3101 6207 Fire Denartmenl 44,000 500,200 " Decrease in Workers Compensation charges 32xx 4203 Decrease in Equipment Replacement charge 32xx 6207 Public Works Denartmenl " Decrease in Workers Compensation charges 26011410114201/4202 4203 Increase in Equipment Replacement charge 26011410161201/4202 6207 Recreation & Parks Department " Decrease in Workers Compensation charges 5xxx 4203 Council Action - Freeze full -time Park Maint Worker and backftll with part-time 5102 4xxx Council Action - Reduce Operating hours or Various Rec Facilities, including Acacia Po 52xx 4xxx Council Action - Reduce Special Event budget 5210 6206 Reduction in Equipment Replacement charge 510115102/6601 6207 Librarp.Services " Decrease in Workers Compensation charges 61xx 4203 Council Action - Reorganize staff and freeze vacant position 6102 4xxx Council Action - Fully fund ESUSD Library Support - Personnel 6103 4xxx Council Action - Fully fund ESUSD Library Support - School Library Materials 6103 5507 Council Action - Fully fund ESUSD Libray Support - Catalog costs 6103 6214 Council Action - Increase in annual software maintenance agreement w/ ESUSD suplor and fully fund ESUSD Library Support - Maintenace Software 6104 6217 Budget Correction - Adjust Salaries for Library Support Reduction in Equipment Replacement charge 6101 6207 Total General Fund inclusive of Transfers Out " To adjust total Workers' Compensation Charges to final valuation report. Other Funds Preliminary Budget Appropriations inclusive of Transfers Out 3,500 (900) 2,60( 100 (100) - 3,800 (3.200) 60C 120,000 (25,000) 95.000 3,000 (500) 2,500 2,600 1,.100 3,700 22,900 (3,000) 19,900 L054,500 168,600 1,223,100 15,500 (300) 15,200 13,300 (2,400) 10,900 249,600 (6,000) 243,600 18,200 (3,100) 15,100 1,652,400 (57,900) 1.594,500 2,100 (1,200) 900 6,700 (1,500) 5,200 564,800 (17,500) 547,300 400 (400) .. 40,000 40,000 80,000 332,400 (121.,800) 210,600 597,500 (64,600) 532,900 17,073,100 (496,600) 16,576,500 16,576,500 11 1, 500 16,688,000 16,688,000 40,000 16,728,000 411,500 45.500 457,000 592,900 (101,900) 491.000 367.500 (27,100) 340,400 35,600 (5,200) 30,400 121,700 1800 125,500 45,700 (7,900) 37,800 1,393,200 (52,200) 1,341,000 1,624,800 (27,500) 1,597,300 44;000 (12,500) 31,500 69,100 (5,500) 63,600 19,700 (3.000) 16,700 462,500 (92,700) 369,800 456,200 85,800 542,000 3,200 3,200 1,000 4,000 5,000 29.300 2;000 31,300 456,200 44,000 500,200 12,100 (200) 11,900 61 183,900 (592,200) 60.591.700 S 64,635,300 $ 64,043,100 S 75,816,500 Asset Forifeiture 0 o9) Fund Decrease in Salaries and Benefits 3105 4xxx 466.800 (5.400) 461,400 63,753,500 CITY OF EL SEGUNDO EXHIBIT A CHANGE LIST OF EXPENDITURE BUDGET REVISIONS - APPROPRIATIONS ALL FUNDS FISCAL YEAR 2014 -2015 ADOPTED BUDGET FISCAL YEAR 201.1.21115 BUDGET Total Div Account Proposed Inc (Dee) Approved I., (M) Balance Measure R (110 Fund) Conemunity Development Block Gran! (11 ) Fund Prop A Fund 1111 Decrease in Salaries and Benerils Prop C Fund (114) neercmr to Salarin and BvacOes Air Pollution Reduction Fund (115) Adjustment- Elimination of costs not available for reimbursement .State Gas Tax Fund (106) Residential Sound Insulation Fund (116) Decrease in Salaries and Benefits Increase in Construction Costs LA WA Fund (111) Debt Service Fund (202) Capital Improvement Fund (301) Economic Uncertainly Fund (401) Accrual Sick Leave Vacation Fund (404) Facilities Maintenance (404) Water (501) Fund Fund for Principal Civil Engineer - 50 Fund for Part -Time Water Maintenance Worker Increase in Equipment Replacement charge Waste Wafer (502) Fund Fund for Principal Civil Engineer -50 Increase in Equipment Replacement Charge Golf Fund (503) Inerease in Equipment Replacement charge Emlipment Replacement Fund (601) Decrease in Assets Eligible to be Replaced - Equipment Decrease in Assets Eligible to be Replaced - Automotive Increase in Awls Eligible to he Replaced - Communications Increase in Assets Eligible to be Replaced - Computer Liability Fund (602) Workers' Compensation Fund Developer Fees Expendable Trust Expendable Trust - Other Outside Service Trust (708) Total Revised City Appropriations - Other Funds inclusive of Transfers Out Total Revised City Appropriations - All Funds inclusive of Transfers Out 529x 4xxxx 529x 4xxxx 0000 4xxx 1,168,400 (2,400) 1,166,000 0000 8960 15,800,000 11,975,500 27,775,500 7102 4xxx 80,100 80,100 7102 4xxx - 25,000 25,000 7102 6207 37,700 4,000 41,700 4301 4xxx - 80,100 80,100 4301 4xxx 4301 6207 36,600 3,900 40,500 5301 6207 17,300 1.700 19,000 xxxx 8104 1,339,100 (178,100) 1,161,000 xxxx 8105 1.972.800 (48,700) 1,924,100 xxxx 8106 723,000 32,800 755,800 xxxx 8108 920,000 18,400 938,400 $ 11,986,900 $ 87,803,400 $ 11,394,700 $ 151,846,500 CITY OF EL SEGUNDO EXHIBIT A CHANGE LIST OF REVENUE BUDGET REVISIONS - ALL FUNDS FISCAL YEAR 2014 -2015 ADOPTED BUDGET General Fund Preliminary Estimated Revenues inclusive of Transfers In ADJUSTMENTS: Increase to Current Year Secured Estimate Increase to Current Year Unsecured Estimate Increase to Aquatics Drop In Programs Total General Fund Estimated Revenues inclusive of Transfers In Other Funds Preliminary Estimated Revenues inclusive of Transfers In Correction to Schedule: Traffic Safety Fund (104) Adjust Vehicle Code Fines Adjust Interest on Investments State Gas Tax Fund (106) Adjust Interest on Investments Asset Forfeiture Fund (109) Adjust Interest on Investments Adjust hiterest US Treasury Measure "R" Transit Sales Tax Fund (110) Adjust Interest on Investments Measure R Sales Tax Community Development Block Grant Fund (I 11) Proposition "A" Transportation Fund (112) Adjust Interest on Investments Proposition "A" Sales Tax Beach Shuttle Passenger Fares Proposition "C" Transportation Fund (114) Adjust Interest on Investments Proposition "C" Sales Tax A__ it Pollution Reduction Fund (115) Adjust Interest on Investments _Residential Sound Insulation Fund (116) Adjust Interest on Investments FAA 150 Grant Sales Records & Reports Applicant Portion Hyperion Mitigation Fund (117) TDA Article 3 Fund (118) Adjust Interest on Investments TDA Article 3 - SB 821 FISCAL YEAR 2014 -2015 BUDGET Account Inc (Dec) Balance $ 60,955,100 3101 $ (308,500) 3102 $ (12,900) 5202 -3874 $ 9,000 $ (312,400) $ 60,642,700 $ 59,756,300 Preliminary Total $ 149,200 3511 S (18,400) 3601 $ (535) Subtotal $ (18,935) Adjusted Total $ 130,265 Preliminary Total $ 502,000 3601 $ 4,650 Adjusted Total $ 506,650 Preliminary Total $ 256,800 3601 $ (150) 3604 (6,000) Subtotal S (6,150) Adjusted Total $ 250,650 Preliminary Total $ 3601 $ 1,000 3746 $ 183,000 Subtotal $ 184,000 Adjusted Total $ 184,000 Preliminary Total $ 140,300 Preliminary Total $ 246,800 3601 $ 200 3751 $ 50,000 5293 -3858 $ 4,000 Subtotal $ 54,200 Adjusted Total $ 301,000 Preliminary Total $ 205,100 3601 3754 $ 429000 Subtotal $ 40,400 Adjusted Total $ 245,500 Preliminary Total $ 20,400 3601 $ (350) Adjusted Total $ 20,050 Preliminary Total $ 17,326,600 3601 S (1,550) 3755 $ 1,000,000 3812 $ (2,000) 3920 $ (300,000) Subtotal $ 696,450.00 Adjusted Total $ 18,023,050 Preliminary Total $ 800 Preliminary Total $ - 3601 $ 50 3725 $ 13,600 Subtotal $ 13,650 CITY OF EL SEGUNDO EXHIBIT A CHANGE LIST OF REVENUE BUDGET REVISIONS - ALL FUNDS FISCAL YEAR 2014 -2015 ADOPTED BUDGET C.O.P.S/SLESFFUND (120) C.O.P.S. Funding Adjust Interest on Investments LA WA Fund (122) Adjust Interest on Investments LAWA Grant Federal Grants (124) Adjust Interest on Investments State Grants (125) AB 109 Front -Line Intervention Services Police Training STC Debt Service Fund (202) Developer Contribution Traffic Mitigation Capital lm ro vement Fund 301 Economic UncertainlvFund (40 1) Facilities Maintenance Fund (405) Water Fund (501) Adjust Interest on Investments Water Sales Meter Installation Reclaimed Water Sales Miscellaneous Revenue Sewer Fund (502) Adjust Interest on Investments Wastewater User Fees Wastewater Connection Fees Annual Quality Surcharge Golf Course Fund (503) Equipment Replacement Fund (601) Adjust Equipment Replacement Charge to other Departments Transfer in General Fund Liability Insurance Fund (602) Adjust to account for Charges to Depts Workers' Compensation Insurance (603) Adjust to account for Charges to Depts FISCAL YEAR 2014 -2015 BUDGET Account Inc (Dec) Balance Adjusted Total $ 13,650 Preliminary Total $ - 3207 $ 100,000 3601 $ 1,700 Subtotal $ 101,700 Adjusted Total $ 101,700 Preliminary Total $ 12,000 3601 $ 20,000 3760 11,175,000 Subtotal $ 11,195,000 Adjusted Total $ 11,207,000 Preliminary Total $ - 3601 120 Adjusted Total $ 120 Preliminary Total $ 116,000 3618 90,000 3703 (500) Subtotal 89,500 Adjusted Total $ 205,500 Preliminary Total $ 1009000 3972 25,000 Adjusted Total $ 125,000 Preliminary Total $ 3,320,000 Preliminary Total $ 750,000 Preliminary Total $ 350,000 Preliminary Total $ 24,936,300 3601 46,500 3851 (1,039,300) 3853 (5,000) 3856 2,628,800 3859 (6,800) Subtotal 1,624,200 Adjusted Total $ 26,560,500 Preliminary Total $ 4,170,400 3601 229900 3861 (698,400) 3862 (12,000) 3865 217,000 Subtotal (470,500) Adjusted Total $ 3,699,900 Preliminary Total $ 2,170,000 Preliminary Total $ 1,712,000 3912 40,500 9001 200,000 Subtotal 240,500 Adjusted Total $ 1,952,500 Preliminary Total S 1,396,100 3911 $ (74,700) Adjusted Total S 1,321,400 Preliminary Total $ 1,875,500 3911 S (356,600) Adjusted Total $ 1,518,900 Total Other Funds Estimated Revenues inclusive of Transfers In $ 27,124,020 $ 73,098,435 CITY OF EL SEGUNDO EXHIBIT A CHANGE LIST OF REVENUE BUDGET REVISIONS - ALL FUNDS FISCAL YEAR 2014 -2015 ADOPTED BUDGET Total Revised Estimated Revenues Inclusive of Transfers In Prior Year Designation Fund Reserves Total Revised Estimated Revenues Inclusive of Transfers In FISCAL YEAR 2014 -2015 BUDGET Account Inc (Dec) Balance $ 26,811,620 $ 133,741,135 $18,105,365 $151,846,500 EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA STATEMENT AGENDA HEADING: Special Order of Business - Public Hearing AGENDA DESCRIPTION: Consideration and possible action to amend El Segundo Municipal Code (`SSMC ") § §15 -1 -6, 15 -6A -2, 15- 6A -11, 15 -6D -5, 15 -6D -13 and 15 -8 -2 to add a definition of "Emergency Shelters "; to allow Emergency Shelters as a Permitted Use in the Light Industrial (M -1) Zone; to allow Emergency Shelters as a Conditional Use in the Medium Manufacturing (MM) Zone; to establish Emergency Shelter Development Standards; and, to remove the managed production of resources on Agricultural Lands as a permitted use in the Open Space (O -S) Zone. Applicant: City of El Segundo (Fiscal Impact: None). RECOMMENDED COUNCIL ACTION: 1. Open the Public Hearing; 2. Discussion; 3. Introduce, and waive first reading of an Ordinance for Environmental Assessment No. EA -1066 and Zone Text Amendment No. ZTA 14 -02; 4. Schedule second reading and adoption of the Ordinance on October 7, 2014; and /or 5. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Draft Ordinance 2. Planning Commission Staff Report, dated August 28, 2014, and Planning Commission Resolution No. 2756 3. Map _ FISCAL IMPACT: N/A Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Kimberly Christensen, AICP, Planning Manager REVIEWED BY: Sam Lee, Planning and Building §afety Director APPROVED BY: Greg Carpenter, City Manager BACKGROUND: On February 4, 2014, the El Segundo City Council adopted a new Housing Element which was subsequently certified by the California Department of Housing and Community Development (HCD). To implement the Housing Element, the City Council should consider adopting the proposed ordinance adding regulations regarding emergency shelters to the El Segundo Municipal Code ( "ESMC "). California law requires that the City allow emergency shelters to operate within its jurisdiction pursuant to the requirements in Government Code § 65583. Compliance with Government Code § 65583 is a component of the City's newly adopted Housing Element and was one of the criteria the HCD used in certifying the City's Housing Element. The City's new Housing Element includes a commitment to allow Emergency Shelters as a permitted use no later than October 1, 2014. Failure to meet this commitment would risk non - compliance with State law. This could result in loss of potential State funding opportunities and could negatively impact certification of the City's Housing Element in future review cycles. On August 28, 2014, the Planning Commission held a public hearing on the proposed Environmental Assessment No. 1066 and Zone Text Amendment No. ZTA 14 -02 amending the El Segundo Municipal Code (`ESMC ") zoning regulations to add a definition "Emergency Shelters," to allow Emergency Shelters as a Permitted Use in the Light Industrial (M -1) Zone and as a Conditional Use in the Medium Manufacturing (MM); and to establish development standards for Emergency Shelters. Zone Text Amendment No. ZTA 14 -02 also removes "the managed production of resources on agricultural lands" ( "Agriculture ") as a permitted use in the Open Space (O -S) Zone. The City has no agricultural land uses, operations, or production. Government Code §65583 and §65583.2 requires that a local agency's Housing Element provide for a variety of housing types including housing for agricultural employees. Thus, removing the "Agriculture" designation as a permitted use in the Open Space (O -S) Zone would eliminate this obsolete designation and bring the ESMC into compliance with the Housing Element Update. The attached August 28, 2014 Planning Commission staff report includes Project Background, Project Description, Analysis, General Plan, Zoning and Environmental Review consistency discussions. Planning Commission Hearing The Planning Commission received no public testimony at the hearing and received no written communication regarding the proposed zone text amendment. The Commission adopted Resolution No. 2756, recommending City Council approve Environmental Assessment No. 1066 and approve Zone Text Amendment No. 14 -02. RECOMMENDATION: Staff recommends that the City Council introduce and waive first reading of the attached draft Ordinance to approve Environmental Assessment No. EA -1066 and Zone Text Amendment No. 14 -02. Second reading and adoption of the Ordinance would occur on October 7, 2014. PAPlanning & Building Safety \0 Planning - Old \PROJECTS (Planning) \1051 - 1075 \EA - 1066\2014.08.28. EA 1066 Emergency Shelters ZTA cC Staff Report.doc ORDINANCE NO. AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE ( "ESMC ") § §15 -1 -6, 15 -6A -2, 15- 6A -11, 15 -613-5, 15- 6D -13, AND 15 -8 -2 TO ADD A DEFINITION OF "EMERGENCY SHELTERS "; TO ALLOW EMERGENCY SHELTERS AS A PERMITTED USE IN THE LIGHT INDUSTRIAL (M -1) ZONE; TO ALLOW EMERGENCY SHELTERS AS A CONDITIONAL USE IN THE MEDIUM MANUFACTURING (MM) ZONE; TO ESTABLISH DEVELOPMENT STANDARDS FOR EMERGENCY SHELTERS; AND TO REMOVE THE MANAGED PRODUCTION OF RESOURCES ON AGRICULTURAL LANDS AS A PERMTTED USE IN THE OPEN SPACE (O -S) ZONE FOR THE PURPOSE OF COMPLYING WITH THE 2013 -2021 HOUSING ELEMENT OF THE EL SEGUNDO GENERAL PLAN. (EA NO. 1066 and ZTA NO. 14 -02) The City Council of the City of El Segundo does ordain as follows: SECTION 1: The City Council finds and declares as follows: A. On May 14, 2014, the City of El Segundo filed an application for Environmental Assessment No. EA -1066 and Zone Text Amendment No. ZTA 14 -02. The application proposes an ordinance to amend the El Segundo Municipal Code ( "ESMC ") to add a definition of "Emergency Shelters "; to allow Emergency Shelters as a Permitted Use in the Light Industrial (M -1) Zone; to allow Emergency Shelters as a Conditional Use in the Medium Manufacturing (MM) Zone; to establish development standards for Emergency Shelters; and to remove the managed production of resources on agricultural lands as a permitted use in the Open -Space (OS) Zone for the purpose of compliance with the 2013 -2021 Housing Element of the El Segundo General Plan (the "project "); B. The application was prepared and reviewed by the City's Planning and Building Safety Department for, in part, consistency with the General Plan and conformity with ESMC; C. The City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code § §21000, et seq., "CEQA ") and the regulations promulgated thereunder (14 California Code of Regulations § §15000, et seq., the CEQA Guidelines ") and the City's Environmental Guidelines (City Council Resolution No. 3805, adopted March 16, 1993); D. On August 28, 2014, the El Segundo Planning Commission adopted Resolution No. 2756 recommending that the City Council adopt this Ordinance; E. On September 16, 2014 the City Council held a public hearing and considered the information provided by City staff, public testimony, and the Planning Commission's recommendations regarding this Ordinance; and F. The ESMC amendments effectuated by this Ordinance are made based upon the entire administrative record including, without limitation, testimony and evidence presented to the City Council at its September 16, 2014 hearing and the staff report submitted by the Planning and Building Safety Department. SECTION 2: ESMC § 15 -1 -6 is amended to add the following definitions: "15 -1 -6: DEFINITIONS: DIRECTOR: The director of planning and building safety, or designee. EMERGENCY SHELTER: Housina with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inabilitv to aav in accordance with Health and Safetv 11 :I Ol HOMELESS PERSON: Has the same definition set forth in 42 U.S.C. 11302. SECTION 3: ESMC § 15 -6A -2 is amended to read as follows: "15 -6A -2: PERMITTED USES: The following uses are permitted in the M -1 Zone: A. Emergency shelters. A.B. Fiberglass products, continuous filament lamination of. �C. General offices and establishments for research, professional and technical services. S-.D. General storage, warehousing and ministorage. 9-. E. High and medium bay labs. F. Light manufacturing uses and related offices. -G. Manufacturing and assembly of electrical appliances, electronic instruments and devices, radios and phonographs, including the manufacturing of small tools and parts such as coils, condensers, transformers, crystal holders, etc. 6 G-.H. Manufacturing of cleaning agents, waxes and finishes. H-J. Manufacturing of cutlery, hardware, and hand tools and kitchen utensils. 1:J. Manufacturing, processing and packaging of pharmaceuticals, drugs, toiletries and cosmetics, except soap. J-.K. Public facilities, including, but not limited to, fire and police facilities, post offices, and libraries. K-L. Public utilities, including, but not limited to, power substations and telephone exchanges. L—.M. Recreation facilities (public and private). M-.N. Restaurants and cafes. #-.O. Other similar uses approved by the d feeteF Of ^ ^mm. unity, eGenemin and development se FViGesd i rector as provided by GhaptefChapter 22 of this title." SECTION 4: ESMC § 15 -6A -11 is added to read as follows: "15- 6A -11: EMERGENCY SHELTERS DEVELOPMENT STANDARDS: A. Emergency Shelters. Emergency Shelters are subject to the following development standards: 1. Not more than one emergency, shelter is permitted within a radius of three hundred (300) feet from another emergency shelter. 2. The emergency shelter facility may provide one or more of the following specific facilities and services including, without limitation: a. Child care facilities. b. Commercial kitchen facilities designed and operated in compliance with Health and Safety Code _§§ 113700, et seg.; c. Dinina area: d. Laundry; e. Recreation room: and f. Support services (e.g., training, counseling). 3. Not more than twelve persons can be served on a nightly basis. 3 4. Maximum length of stay of a person in an emergency shelter is limited to one hundred eighty (180) days in any 12 -month period. 5. The facility must provide a minimum of 50 gross square feet of personal living space per person served, not including space for common areas. 6. Emergency shelters may operate 24 -hours a dAy to provide sleeping facilities and other facilities and services. Admittance and intake processing of emergency shelter clients is limited to 7:00 AM to 10:00 PM daily. Delivery hours are limited to 7:00 AM to 6:00 PM dailv. Refuse collection is limited to 7:00 AM to 8:00 PM dailv. 7. Each emergency shelter must have an on -site management office, with at least one (1_) em llgyee present at all times the emergency shelter is in operation. A minimum of two (2) employees must be on duty when more than ten (10) beds are occupied. 8. Each emergency shelter must have on -site security employees, with at least one (1) security employee present at all times the emergency shelter is in operation. 9. Staging drop -off, intake, and pick -up of emergency shelter clients must take place inside a building, at a rear or side entrance not adjacent to a public right -of- way, or in an interior courtyard. Any exterior waiting areas must be physically and visually separated from public view of a right -of -way with a minimum six (6) foot tall decorative masonry wall and /or a six (@) foot tall hedge or similar mature landscaping as approved by the director. Floor plans for the emergency shelter must be submitted with the building plans that show the size and location of any proposed interior and /or exterior waiting or resident intake areas. 10. Outdoor recreation activities MAy be conducted at the facility subject to the same physical and visual separation requirements as exterior waiting areas as set forth in this Section. 11. Off- street parking must be provided as set forth in this Code, except that the number off - street parking spaces provided must be one (1) parking space per three 3 beds plus one 1 parking space per employee on duty with a minimum of three (3) employee parking spaces. Notwithstanding this requirement, the required number of off - street parking spaces cannot exceed the spaces required for similar uses of the same size in the M -1 Zone. 12. Exterior lighting must_ be provided at all building entrances and outdoor activity areas, and must be activated between sunset and sunrise of each day. All exterior liahtina must comely with this Code. 13. Facilities must provide a storage area for refuse and recyclables and must be fully screened from public view of any public right-of-way and be enclosed by a solid wall or fence,_ in accordance with this Code. The refuse and recyclable storage area must be large enough to accommodate the number of bins that are required to provide the facility with sufficient service so as to avoid the overflow of material outside of the bins provided. 14. Emergency Shelter application requests and building plans for emergency shelters must be submitted to the director, and if the application and building plans meets all applicable standards in this Code, including design, development, and any other state or local requirement, the Emergency Shelter application may be approved by the director. Emergency Shelter applications must be approved before a building permit may be issued." SECTION 5: ESMC § 15 -6D -5 is amended to read as follows: "15 -6D -5: USES SUBJECT TO CONDITIONAL USE PERMIT: The following uses are allowed subject to obtaining a conditional use permit, as provided by chapter 23 of this title: A. Automobile service uses, if a three hundred foot (300) minimum distance from any residentially zoned property is provided. This distance criteria does not apply to properties east of Sepulveda Boulevard. B. Emergency Shelters. B-.C. Freight forwarding. GD. Outdoor dining, exempting cafes, outdoor dining at restaurants and drive - through restaurants where outdoor dining comprises twenty percent (20 %) or less of the total dining area of the restaurant or drive - through restaurant, but not exceeding two hundred (200) square feet of floor area. D-. E. Service stations, if a five hundred foot (500) minimum distance from any residential zoned property is provided. This distance criteria does not apply to properties east of Sepulveda Boulevard. F. Other similar uses approved by the director, as provided by chapter 22 of this title." SECTION 6: ESMC § 15 -6D -13 is added to read as follows: "15- 613-13: EMERGENCY SHELTERS DEVELOPMENT STANDARDS: A. Emergency Shelters. Emergency Shelters are subject to the following development standards: 1. No more than one emergency shelter is permitted within a radius of three hundred (300) feet from another emergency shelter. 5 2. The emergency shelter facility may provide one or more of the following specific facilities and services, including, without limitation: a. Child care facilities. b. Commercial kitchen facilities designed and operated in compliance with Health and Safety Code §§ 113700, et seg.; c. Dining area; d. Laundry; e. Recreation room; and f. Support services (e.g., training, counseling). 3. Not more than twelve aersons can be served on a niahtiv basis. 4. Maximum length of stay_ in an emergency shelter is limited to one hundred eighty (180) days in any 12 -month period. 5. The facility must provide a minimum of 50 gross square feet of personal living space per person served, not including space for common areas. 6. Emergency shelters may operate 24 -hours a day to provide sleeping facilities and other facilities and services. Admittance and intake processing of emergency shelter clients is limited to 7:00 AM to 10:00 PM daily. Delivery hours are limited to 7:00 AM to 6:00 PM dailv. Refuse collection is limited to 7:00 AM to 8:00 PM dailv. 7. Each emergency shelter must have an on -site management office, with at least one (1) employee present at all times the emergency shelter is in operation. A minimum of two (2) employees must be on duty when more than ten (10) beds are occupied. 8. Each emergency shelter must have on -site security employees, with at least one (1) security employee present at all times the emergency shelter is in operation. 9. Staging drop -off, intake, and pick -up of emergency shelter clients must take place inside a building, at a rear or side entrance not adjacent to _a__p_u_blic right-of- way, way, or in an interior_ courtyard. Any exterior waiting areas must be physically and visually separated from public view of a right -of -way with a minimum six (6) foot tall decorative masonry wall and /or a six (6) foot tall hedge or similar mature landscaping as approved by the director. Floor plans for the emergencv shelter must be submitted with the building plans that show the size and location of any proposed interior and /or exterior waiting or resident intake areas. 10. Outdoor recreation activities may be conducted at the facility subject to the same physical and visual separation requirements as exterior waiting areas as set forth in this Section. 11. Off - street parking must be provided as set forth in this Code except that the number off- street parking spaces provided must be one (1) parking �space ^ per three (3) beds, plus one (1) parking space per employee on duty with a minimum of three 3 employee parking spaces, Notwithstanding this re uirement the required number of off - street parking spaces cannot exceed the spaces ,,required for similar uses of the same size in the MM Zone. 12. Exterior lighting must be provided at all building entrances and outdoor activity areas, and must be activated between sunset and sunrise of each day, All exterior lighting must comply with this Code, 13. Facilities must-provide a storage area for refuse and rec clables and must be fully screened from public view of any _public right -of -way and be enclosed by a solid wall or fence, in accordance with this Code. The refuse and recyclable storage area must be large enough to accommodate the number of bins that are required to provide the facility with sufficient service so as to avoid the overflow of material outside of the bins provided. 14. Emergency Shelter application requests and building plans for emergency_ shelters must be submitted to the director, and if the application and building plans meets all applicable standards in this Code, including design, � development, and any other state or local requirement, the Emergency Shelter application max be approved by the director, Emergency Shelter applications must be approved before a building permit May by a issued." SECTION 7: ESMC § 15 -8 -2 is amended to read as follows:. "15 -8 -2: PERMITTED USES: The following uses are permitted in the O -S Zone: A. Public outdoor recreation, including, but not limitedAGwithout limitation, ball parks and bleachers, swimming pools, parks and other areas of active or passive recreational usage; trails and other suitable corridors including off -road bicycle paths. B. The preservation and conservation of natural resources, including, but not limited tewithout limitation, areas required for the preservation of plant and animal life and areas required to provide visual relief from intense urban development and growth. C. The managed production of Feseurnoc includinn but net limited to agriGultural land a44d-mineral deposits. D. The regulation of areas for public health and safety, including, but not Limited tewithout limitation, areas which require special management or regulation because of hazardous or special conditions. E. Other similar uses approved by the #e-G �merm Ec*n0n* and Development conaG^sdirector, as provided by Chapter 22 of this TWetitle." SECTION 8: Environmental Determination: The City Council determines that this Ordinance is exempt from further environmental review under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA ") and CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because it establishes rules and procedures for construction and operation of new small commercial facilities. Specifically, the proposed ordinance would allow Emergency Shelters as a permitted use in the Light Industrial (M -1) Zone and as a conditional use in the Medium Manufacturing (MM) Zone; remove managed production of resources on agricultural lands as a permitted use in the Open -Space (OS) Zone; and implement minor revisions and clarifications to existing regulations and specification of procedures related to housing and will not have the effect of substantially changing regulatory standards or findings. The project, therefore, is categorically exempt from further CEQA review under CEQA Guidelines § 15303. Further, the project is also exempt from review under CEQA pursuant to CEQA Guidelines § 15061(b)(3) because the project is for general policies and procedure- making. The project does not authorize any new development entitlements, but simply establishes policies and procedures. Any proposed project that will utilize the changes set forth in the proposed ordinance will be subject to CEQA review as part of the entitlement review of that project. The project will not adversely impact the environment and is therefore exempt from the provisions of CEQA. SECTION 9: If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the city council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 10: Each and every one of the findings and determinations in this Ordinance are based on the competent and substantial evidence, both oral and written, contained in the entire record. The findings and determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole. SECTION 11: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 12: This Ordinance will become effective on the thirty -first (31st) day following its passage and adoption. PASSED AND ADOPTED this day of , 2014. Suzanne Fuentes, Mayor ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO 1 I, Tracy S. Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said is five; that the foregoing Ordinance No. was duly introduced by said City Council at a regular meeting held on the 16th day of September, 2014, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of 2014, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy S. Weaver, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney Karl H. Berger, Assistant City Attorney PAPlanning & Building Safety \0 Planning - Old \PROJECTS (Planning) \1051- 1075 \EA - 1066\2014.09.16. EA 1066 Emergency Shelters ZTA CC Ordinance.doc 0 CITY OF EL SEGUNDO PLANNING COMMISSION STAFF REPORT PUBLIC HEARING: August 28, 2014 SUBJECT: Environmental Assessment No. EA -1066 and Zone Text Amendment No. ZTA 14 -02 (El Segundo Municipal Zoning Code Amendment to Implement the Housing Element) APPLICANT: City of El Segundo PROPERTY OWNER: Citywide REQUEST: El Segundo Municipal Zoning Code Amendment to Implement the 2013 -2021 Housing Element PROPERTY INVOLVED: Medium Manufacturing (MM) Zone; Light Industrial (M -1) Zone; and Open Space (O -S) Zone I. Introduction The City Council adopted a new Housing Element on February 4, 2014 which was subsequently certified by the California Department of Housing and Community Development (HCD). To implement the Housing Element, the City Council should consider adopting the draft ordinance which adds regulations regarding "emergency shelters." This also complies with changes in California law that require local agencies to allow emergency shelters within their jurisdictions (see Government Code § 65583). II. Recommendation The Planning Commission should consider adopting a resolution recommending that the City Council adopt an ordinance adding regulations regarding emergency shelters to the El Segundo Municipal Code ( "ESMC "). III. Background California law requires that the City allow emergency shelters to operate within its jurisdiction. Consistent with these legislative changes, the City Council adopted a new Housing Element in February 2014. To implement the Housing Element requires that the City Council consider adopting new land use regulations regarding emergency shelters. If adopted, the draft ordinance would amend the ESMC as follows: 1. Permit emergency shelters in the Medium Manufacturing (MM) Zone and the Light Manufacturing (M -1) Zone by right without discretionary review; and, 2. Remove the managed production of resources on agricultural lands as a permitted use in the Open -Space (OS) Zone since the City has no agriculturally designated land uses or existing agricultural operations. This regulation in the Open Space ((O -S) Zone is outdated and does not reflect current or projected land uses in the City. IV. Analysis Emergency Shelters. Program 1, "Zoning Revisions" of the Housing Element Update identified the City's plan for addressing unmet housing needs and removal of constraints to housing in accordance with California law. The proposed zone text amendment would address unmet housing needs and remove constraints by: 1) adding a definition of Emergency Shelter to ESMC § 15 -1 -6; 2) allowing Emergency Shelters as a Permitted Use in the Light Industrial (M -1) Zone and the Medium Manufacturing (MM) Zone; and 3) establishing development standards for Emergency Shelters. The standards proposed in the draft ordinance are intended to provide adequate services and ensure the protection of the clients served on site; and to provide appropriate design criteria to ensure adequate protection and compatibility with adjacent land uses. Staff believes that the proposed standards accomplish those objectives. Permitted Uses in the Open Space (O -S) Zone Zone Text Amendment No. ZTA 14 -02 proposes to remove "the managed production of resources on agricultural lands" ( "Agriculture ") as a permitted use in the Open Space (O -S) Zone. Government Code §65583 and §65583.2 requires that a local agency's Housing Element provide for a variety of housing types including housing for agricultural employees. The City has no agricultural land uses, operations, or production. Thus, providing housing for agricultural employees is not required for the City's Housing Element. Removing the "Agriculture" designation as a permitted use in the Open Space (O -S) Zone would eliminate this obsolete designation and bring the ESMC into compliance with the Housing Element Update. 2 V. General Plan and Zoning Consistency As set forth in the draft resolution and ordinance, the proposed regulations comply with the General Plan. VI. Environmental Review As set forth in the draft resolution and ordinance, the proposed ordinance is exempt from further CEQA review. The project does not authorize any new development entitlements, but simply establishes policies and procedures. Any proposed project that will utilize the changes set forth in the proposed ordinance will be subject to CEQA review as part of the entitlement review of that project. The project will not adversely impact the environment and is therefore exempt from the provisions of CEQA. VII. Public Notice A public hearing notice was posted in the El Segundo Herald, as well as mailed to various groups and organizations interested in housing issues. VIII. Conclusion Staff recommends that the Planning Commission adopt Planning Commission Resolution No. 2756 recommending that the City Council approve Environmental Assessment No. EA -1066 and Zone Text Amendment No. ZTA 14 -02, which amends the ESMC in order to implement the Housing Element. IX. Exhibits A. Draft Resolution B. Draft Ordinance C. Excerpts of 2013 -2021 Housing Element Prepared by: Tina Gall, Planning Consultant L11 AAA t), 6 V ! 1 Il Kimberly Chris ., AICP, Planning Manager Planni an ui ' ng Safety Department Sam L , r Panning and Building Safety Department PAPlanning & Building Safety \0 Planning - Old \PROJECTS (Planning) \1051 - 1075 \EA - 1066\2014.08.28. EA 1066 Emergency Shelters ZTA PC Staff Report.doc 3 RESOLUTION NO. 2756 A RESOLUTION RECOMMENDING THAT CITY COUNCIL ADOPT AN ORDINANCE AMENDING THE EL SEGUNDO MUNICIPAL CODE ( "ESMC ") REGULATING "EMERGENCY SHELTERS. (EA NO. 1066 and ZTA NO. 14 -02) The Planning Commission of the City of El Segundo does resolve as follows: SECTION 1: The Planning Commission finds and declares that: A. On February 4, 2014, the City Council of the City of El Segundo adopted an update to its Housing Element of the General Plan for the period 2013 to 2021; B. On February 24, 2014, the California Department of Housing and Community Development certified the City's Housing Element; C. As part of the adopted Housing Element Update, the City proposed to consider amending the zoning regulations in the El Segundo Municipal Code ( "ESMC ") to add Emergency Shelters as a Permitted Use in the Light Manufacturing (M -1) Zone and as a Conditional Use in the Medium Manufacturing (MM) Zone, and to remove the managed production of resources on agricultural lands as a permitted use in the Open Space (O- S) Zone. The City filed an application to accomplish such actions on May 14, 2014; D. The application was prepared and reviewed by the City's Planning and Building Safety Department for, in part, consistency with the General Plan and conformity with the ESMC; E. The City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA ") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines "), and the City's Environmental Guidelines (City Council Resolution No. 3805, adopted March 16, 1993); F. The Planning and Building Safety Department completed its review and scheduled the public hearing regarding the application before the Planning Commission for August 28, 2014; G. On August 28, 2014, the Planning Commission held a public hearing to receive public testimony and other evidence regarding the proposed amendment, including, without limitation, information provided to the Planning Commission by City staff and public testimony; and H. This Resolution and its findings are made based upon the evidence presented to the Commission at its August 28, 2014, hearing including, without limitation, the staff report submitted by the Planning and Building Safety Department. SECTION 2: Factual Findings and Conclusions. The Planning Commission finds as follows: A. The City adopted a Housing Element that was subsequently certified by the California State Department of Housing and Community Development (HCD) in accordance with California law. The Housing Element proposes that the City Council amend the ESMC to regulate Emergency Shelters. B. The proposed Amendment removes the obsolete designation of "managed production of resources on agricultural lands" from the Open Space (O -S) Zone to ensure consistency and compatibility with current land uses. SECTION 3: Environmental Assessment. Because of the facts set forth in Section 2, the proposed zone text amendment is exempt from further environmental review under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA ") and CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) because it establishes rules and procedures for construction and operation of new small commercial facilities. Specifically, the proposed ordinance would allow Emergency Shelters as a Permitted Use in the Light Industrial (M -1) Zone and as a Conditional Use in the Medium Manufacturing (MM) Zone; remove managed production of resources on agricultural lands as a permitted use in the Open -Space (OS) Zone; and implement minor revisions and clarifications to existing regulations and specification of procedures related to housing and will not have the effect of substantially changing regulatory standards or findings. The project, therefore, is categorically exempt from further CEQA review under CEQA Guidelines § 15303. Further, the project is also exempt from review under CEQA pursuant to CEQA Guidelines § 15061(b)(3) because the project is for general policies and procedure- making. The project does not authorize any new development entitlements, but simply establishes policies and procedures. Any proposed project that will utilize the changes set forth in the proposed ordinance will be subject to CEQA review as part of the entitlement review of that project. The project will not adversely impact the environment and is therefore exempt from the provisions of CEQA. SECTION 4: General Plan Findings. As required under Government Code § 65860 the ESMC Amendment proposed by the Ordinance are consistent with the El Segundo General Plan as follows: A. The proposed zone text amendment conforms to the Land Use Element Goals, Objectives and Policies. Specifically, the zone text amendment is consistent with Land Use Element Goal 5, Policy Objective LU5 -5 in that the amendment establishes policies and guidelines to permit Emergency Shelters as a Permitted Use in the Light Manufacturing (M1) Zone and as 6 a Conditional Use in the Medium Manufacturing (MM) Zone and that it will be consistent with light industrial development near residential areas. B. The proposed zone text amendment conforms to the Housing Element Goals, Objectives and Policies. Specifically, the zone text amendment is consistent with Housing Element Goal 2, Policies 2.1 and 2.3 in that the amendment will facilitate housing and develop programs to serve special needs persons as well as provide an allowance in the City's zoning regulations, as required by California Law, to permit emergency shelters in industrial zones. C. The proposed zone text amendment is consistent with Housing Element Goal 4 in that the amendment will remove governmental constraints to allow for greater accommodation for housing types for persons with disabilities and special needs. D. The proposed zone text amendment is also consistent with the Open Space and Recreational Facilities Element Goals, Objectives, and Policies. Specifically, it is consistent with Policy OS1 -1.8 in that the amendment will remove agriculture as a permitted use in the Open -Space (OS) zone thus preserving and maintaining publicly -owned park land from conversion to other land uses. SECTION 5: Zone Text Amendment Findings. In accordance with ESMC § 15 -26 -4 and based on the findings set forth in Section 2, the proposed Zone Text Amendment is consistent with the goals, policies, and objectives of the General Plan as follows: A. It is consistent with the purpose of the ESMC, which is to serve the public health, safety, and general welfare and to provide the economic and social advantages resulting from an orderly planned use of land resources. B. It is consistent with California law and the City's adopted General Plan Housing Element Goals and Policies as it provides for Emergency Shelters by removing governmental constraints on housing production and affordability. Further, it ensures the orderly development of housing opportunities in non - residential zones to be compatible with surrounding properties and the public right -of -way. C. It is consistent with goals of the ESMC to remove obsolete land uses such as agriculture and to promote consistent and compatible land uses throughout the City. SECTION 6: Recommendations. The Planning Commission recommends that the City Council adopt the ordinance set forth in attached Exhibit "A," which is incorporated into this resolution by reference. SECTION 7: Reliance On Record. Each and every one of the findings and determination in this Resolution are based on the competent and substantial evidence, 3 both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects and are fully and completely supported by substantial evidence in the record as a whole. SECTION 8: Limitations. The Planning Commission's analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the Planning Commission's lack of knowledge of future events. In all instances, best efforts have been made to form accurate assumptions. Somewhat related to this are the limitations on the city's ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework. SECTION 9: This Resolution will remain effective until superseded by a subsequent resolution. SECTION 10: The Commission secretary is directed to mail a copy of this Resolution to any person requesting a copy. 4 SECTION 11: This Resolution may be appealed within ten (10) calendar days after its adoption. All appeals must be in writing and filed with the City Clerk within this time period. Failure to file a timely written appeal will constitute a waiver of any right of appeal. PASSED AND ADOPTED this 28th day of August, 2014. ATTEST: Sam Lee, Secretary APPROVED AS TO FORM: Mark D. Hensley, City Attorney David Wagner, Chairperson City of El Segundo Planning Commission Karl H. Berger, Assistant City Attorney Wagner Baldino Newman Nicol Nisley PAPlanning & Building Safety \0 Planning - Old \PROJECTS (Planning) \1051 - 1075 \EA - 1066\2014.08.28. EA 1066 Emergency Shelters ZTA PC Resolution 2756.doc 5 r. f/f � 1 ff` 1 � 0 �w ca z 2® _ C�C 2 N C� G � 7 Z U 7 _ c N g E U) L � N Ol N Q. O O b r; q C rl 1 - C*4 - -. O 0-1 •rl U N W F- W a (o W LL O N Q O a. a LL O w Q O � Z OLL Z } � m J W ¢ N0 w O U � 3 (v N 00] 0 m M O M N m Lo N O N W cR N (h G M N m r m ( N N 7 (co tRI - w M W h n n V (7 � N N Ol V c n N co W N N N (O h N N n n V h W W n 01 0] N V N [r O 0 0 0 r O m W m O N N N N N M N M N M Q1 NMMV(n .n .n (ommrnnn rn m WO M) r O N U N E O 0 z m ¢ O 3 J C O m ~ 'N N N N W d U V m c C/) o & J ¢wok Z z M O ¢ € o O Zi OU ULL LL O� wZ Q Z �� d N o. y w m C d w O O C N C N r �U V C C O U c U N E w O N N y L Y L U 7 � U � w � x o (NO n r Q U LL z Z W z Z J Q R Z W D h Y U w x U O >1 V (0 d d J N N m :3 m N C E O. 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U C d Q' C pd E c O N C CO 10 w N w a y0 v U m`o C I cx n C � d m o, c °1 �m G U_ E U y Gi W O I U K W Q i Z d G C 10 G F_ d U D) Q OCC OO Al C N a `o a n( a d i Ii U n 4° m C w _ m O U O r NN C m N 12 U d Wa It may, 'Lu m 'v 'Q m tam a c m c�E° c m V a�n'Ea o LL c O L m 8 x w fY m d w w U I LL ¢ it IL m Zw II z 2 li ~ p 3 CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 08/18114 THROUGH 08/31/14 Date Pavee Amount Description 8/18/2014 IRS 220,685.53 Federal 941 Deposit 8/18/2014 Employment Development 3,832.72 State SDI payment 8/18/2014 Employment Development 43,902.02 State PIT Withholding 8/20/2014 Cal Pers 108,474.67 EFT Retirement Misc 8/20/2014 8/20/2014 Cal Pers Cal Pers 273,575.04 EFT Retirement Safety 8/20/2014 Cal Pers 2,785.78 EFT Retirement Safety - Police 8/21/2014 Lane Donovan Golf Ptr 5,985.87 23,233.24 EFT Retirement Misc Payroll Transfer 8/21/2014 Cal Pers 18,005.39 RBF Benefit 8/22/2014 Health Comp 1,967.67 Weekly claims 8/26/2014 Unum 248.40 Long Term Care Premium 8/29/2014 Health Comp 3,269.27 Weekly claims 8/29/2014 Manufacturers & Traders 22,200.31 457 payment Vantagepoint 8/29/2014 Manufacturers & Traders 477.31 IRA payment Vantagepoint 8/29/2014 Manufacturers & Traders 5,270.93 401 payment Vantagepoint 8/29/2014 US Bank - Trust Acct 7,659.53 PARS payment 8/29/2014 South Bay Credit Union 13,980.38 Payroll credit union deduction pmt 8/29/2014 Nationwide NRS EFT 42,820.10 EFT 457 payment 8/29/2014 Nationwide NRS EFT 1,979.73 EFT 401a payment 8/29/2014 State of CA EFT 910.14 EFT Child support payment 8/16/14 - 8/22/14 Workers Comp Activity 17,160.41 SCRMA checks issued 8/23/14 - 8/29/14 Workers Comp Activity 24,179.35 SCRMA checks issued 842,603.79 DATE OF RATIFICATION: 09/02/14 TOTAL PAYMENTS BY WIRE: 842,603.79 Certified as to the accuracy of the wire transfers by: 41 Deputy City Treasurer II Da Date I 51 Date 9-9-14 Date Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo. PACity Treasurer \Wire Transfers \Wire Transfers 10 -01 -13 to 9 -30 -14 9/2/2014 1/1 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, AUGUST 19, 2014 — 5:00 PM 5:00 P.M. SESSION CALL TO ORDER- Mayor Fuentes at 5:00 PM ROLL CALL Mayor Fuentes - Present Mayor Pro Tern Jacobson - Present Council Member Atkinson - Present Council Member Fellhauer - Present Council Member Dugan - Present PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. SPECIAL ORDER OF BUSINESS: Mayor Fuentes announced that Council would be meeting in closed session pursuant to the items listed on the Agenda. 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 AUGUST 19, 2014 PAGE NO. 14 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 PUBLIC EMPLOYEMENT (Gov't Code § 54957) -0- matter CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6): -8- matters Employee Organizations: Police Management Association; Police Officers Association; Police Support Services Employees Association; Fire Fighters Association; Supervisory and Professional Employees Association; City Employees Association; Executive Management Group (Unrepresented Group); Management/Confidential Group (Unrepresented Group) Agency Designated Representative: Steve Filarsky and City Manager CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0- matters Adjourned at 6:55 PM MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 2 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, AUGUST 19, 2014 - 7:00 P.M. 7:00 P.M. SESSION CALL TO ORDER- Mayor Fuentes at 7:01 PM INVOCATION — Dina Ferguson, St. Michael Episcopal Church PLEDGE OF ALLEGIANCE — Council Member Fellhauer PRESENTATIONS a. Presentation by Mike Harriel, Public Affairs Manager for Southern California Gas Company, Daisy Cristobal and Robin Alexander presented an update on the Advance Meter Project. ROLL CALL Mayor Fuentes - Present Mayor Pro Tern Jacobson - Present Council Member Atkinson - Present Council Member Fellhauer - Present Council Member Dugan - 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. Council Consensus to hold a separate Public Communications on the Top Golf item after Council Member Dugan's presentation. Andrew Walther, resident, commented on the COPS agenda item B1. Jane Friedkin, resident, commented on the Recreation and Parks Fee Analysis Task Force agenda item C3. Joe Caravello, resident, commented on the drone agenda item K18. Mike Robbins, resident, commented on the drone agenda item K18. Melissa Moore, ESUSD Superintendent, commented on agenda item D6. Loretta Frye, resident, commented on the Recreation and Parks Fee Analysis Task Force agenda item C3. MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 3 CITY COUNCIL COMMENTS — (Related to Public Communications) None A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Fellhauer to read all ordinances and resolutions on the agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0. B. SPECIAL ORDERS OF BUSINESS (PUBLIC HEARING) Consideration and possible action to conduct a Public Hearing regarding operating and capital outlay requests of $100,000 from the existing Citizens Option for Public Safety (COPS) Supplemental Law Enforcement Services Fund (SLESF) account by the Chief of Police. The grant requires that expenditures be utilized to supplement "front line law enforcement." Front line law enforcement includes funding special enforcement details, and purchasing equipment. (Fiscal Impact: $100,000 from COPS grant fund) Mayor Fuentes stated this was the time and place to conduct a public hearing and adopt a resolution approving the use of COPS grant funds to purchase equipment related to supplementation of "front line law enforcement ". City Clerk Weaver stated that proper notice had been given in a timely manner and that no written communication has been received in the City Clerk's office. Mayor Fuentes opened the Public Hearing. Mitch Tavera, Chief of Police, gave a presentation and answered questions from the Council. Andrew Walther, resident, commented on the COPS program Jane Friedkin, resident, commented on this item. MOTION by Council Member Fellhauer, SECONDED by Council Member Dugan to close the public hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 Mark Hensley, City Attorney, read by title only: RESOLUTION NO. 4882 A RESOLUTION PROVIDING FOR THE IMPLEMENATION OF THE CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM. MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 4 MOTION by Council Member Fellhauer, SECONDED by Mayor Pro Tem Jacobson to adopt Resolution No. 4882. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 2. Consideration and possible action regarding adoption of a Resolution authorizing the City of El Segundo to withdraw from the Los Angeles Region Interoperable Communications System (LA -RICS) Authority Joint Powers Agreement. (Fiscal Impact: None at this time) Mitch Tavera, Chief of Police, gave a presentation and answered questions from Council. Council Discussion MOTION by Council Member Fellhauer, SECONDED by Mayor Pro Tern Jacobson to adopt Resolution No. 4883 authorizing the City's formal withdrawal as a member of the Los Angeles Regional Interoperable Communications System (LA -RICS) Authority Joint Powers Agreement (JPA Agreement) and provide written notice thereof to LA -RICS prior to November 24, 2014. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 Mayor Fuentes moved the City Treasurer presentation forward on the agenda. REPORTS — CITY TREASURER 16. Presentation of new Investment Portfolio Report. (Fiscal Impact: None) Crista Binder, City Treasurer and Dino Marsocci , Deputy Treasurer gave a presentation. Received and filed the Investment Portfolio Report, 17. Information regarding credit card fees and the City's ability to charge a convenience fee. (Fiscal Impact: None) Crista Binder, City Treasurer and Dino Marsocci , Deputy Treasurer gave a presentation. Council Discussion Received and filed the information regarding credit card fees and the City's ability to charge a convenience fee. Council directed staff to develop a City Credit Card Policy, streamline existing processes and implement a pilot payment threshold of $5,000.00 in FY2014 -15. MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 5 Council also directed the Treasury Department to bring back for discussion other threshold amounts. C. UNFINISHED BUSINESS 3. Consideration and possible action to adopt the proposed fee modifications presented by the Recreation and Parks Fee Analysis Task Force. (Fiscal Impact: Estimated Annual Increased Revenues of $12,000.00 to Proposition A and $28,000.00 to General Fund) Meredith Petit, Recreation and Parks Director, gave a presentation and answered questions from Council. Council Discussion MOTION by Council Member Fellhauer, SECONDED by Council Member Dugan to approve the amended proposed fee schedule for aquatics programs, transportation programs services and adopt amended Resolution No. 4884 accepting the new fee schedule. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 Meeting recessed at 9:12 PM Meeting back in session at 9:23 PM 4. Consideration and possible action to enter into a Professional Services Agreement with Isaac Sports Group to conduct an Aquatics Facility Program, Financial, and Sustainability Analysis. (Fiscal Impact: Not to exceed $15,000.00) Meredith Petit, Recreation and Parks Director, gave a presentation and answered questions from Council. Council Discussion MOTION by Council Member Atkinson, SECONDED by Council Member Fellhauer to authorize the City Manager to enter into Agreement No. 4668 for consulting services, in a form approved by the City Attorney, for an Aquatic Facility Program, Financial and Sustainability Analysis. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 5. Update and possible action on the ESCenterCal LLC (CenterCal) proposal to enter into a Due Diligence and Ground Lease Agreement ( "Agreement ") to lease the driving range portion of the Lakes Golf Course for the purpose of developing a Top Golf facility. Greg Carpenter, City Manager, gave a brief update on this item. MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 6 Deborah Cullen, Finance Director, gave a presentation. Council Discussion Council Member Dugan gave a presentation. Council Discussion Mayor Fuentes stated a 3 minute time limit would be imposed during the Public Communications concerning the Top Golf proposal. PUBLIC COMMUNICATIONS — (Related to City Business Only — 3 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. Dr. Antonio Mendez, resident, commented on Deborah Cullen's presentation. Liz Garnholz, resident, offended by the recommended 3 minutes to speak. Jane Friedkin, resident, commented she is not in favor of hiring a firm for analysis on the Top Golf proposal. Chad Cook, Hermosa Beach resident, commented on the financials presented this evening concerning Top Golf. Les Eisman, resident, asked if someone from the company was here this evening? Tom Courtney, Manhattan Beach resident, commented on the loss to the city during the remodel of the range and suggested outsourcing the restaurant portion of the Lakes. Debra Geist, Manhattan Beach resident, commented on the deal presented in November 2013. Not in favor of the deal presented. John Gutt, resident, not in favor of Top Golf proposal. Rupesh Bhakta, CenterCal Properties LLC, mentioned CenterCal is an El Segundo based company. Mr. Bhakta proposed the concept and feels the pros out weigh the cons. Lorretta Frye, resident, commented she is not in favor of hiring a consultant for the Top Golf proposal. Art McFay, Palos Verdes Estates resident, is not in favor of the Top Golf proposal. Morris Chernick, resident and EDAC member, in favor of the Top Golf proposal and hiring a professional consultant for the Top Golf proposal. Peggy Turell, resident, is not in favor of hiring an outside consultant for the Top Golf proposal. Council Discussion MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 7 Council Member Fellhauer presented the new CenterCal and Top Golf Properties Proposal. Council Consensus directed staff to go out for proposals for a consultant firm, engage the golf course subcommittee and EDAC in dialogue and once the proposals are presented to the golf course subcommittee, bring in a third party consultant to evaluate the Top Golf proposal. Toni Reina, representing Continental Development Corp and Richard Lundquist, confirmed an amount of $10,000.00 will be given to the City for a third party consultant company. D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS 6. Report and possible action on the FY 2014 -15 Budget related to funding of the El Segundo Unified School District library services and crossing guards. (Fiscal Impact: Budget savings or additional expense depending on City Council direction.) Greg Carpenter, City Manager, gave an update on this item. Mitch Tavera, Chief of Police, gave a presentation on crossing guards and answered questions from Council. Emilee Layne, School Board Member, stated the Board of Education is committed to finding a solution with the City on the librarians and Crossing Guards joint use agreement. Council Discussion MOTION by Council Member Dugan, SECONDED by Council Member Fellhauer to continue funding the staffing of School Libraries and Crossing Guards for FY 14/15 to the El Segundo Unified School District. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0. E. CONSENT AGENDA All items listed are to be adopted by one motion without discussion and passed unanimously. If a call for discussion of an item is made, the item(s) will be considered individually under the next heading of business. MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 8 7. Approve Warrant Numbers 3001896 through 3002145 on Register No. 21 in the total amount of $1,209,167.89 and Wire Transfers from 07 -14 -2014 through 07- 27 -2014 in the total amount of $1,976,328.22. 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. 8. Approve Regular City Council Meeting Minutes of July 15, 2014, Regular City Council Meeting Minutes of August 5, 2014 and Special City Council Meeting Minutes of August 12, 2014. 9. Accept as complete the installation of sub - meters on the City's Main Electrical Meter and authorize the City Clerk to file a Notice of Completion in the County Recorder's Office. Project No. PW 13 -02. (Fiscal Impact: $29,000.00) 10. Authorize the City Manager to enter into Easement Agreement No. 4669 with Southern California Edison to install equipment upgrades at 400 S. Sepulveda Blvd. for improved service reliability in El Segundo. (Fiscal Impact: receipt of a one -time $2,000 easement fee) 11. Receive and file the report regarding cleaning and repairing drywall and carpet as well as restoring furniture in the north portion of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC ") §§ 1 -7 -12 and 1 -7A -4. (Fiscal Impact: $37,000.00) 12. Receive and file the report regarding the emergency repair to remove debris in the attic space of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC ") §§ 1 -7 -12 and 1 -7A -4. (Fiscal Impact: $82,354.00) 13.Authorize the City Manager to execute Funding Agreement No. 4670 with the Los Angeles County Metropolitan Transportation Agency, for the receipt of $350,000 in Measure R grant funds for Park Place Extension Project environmental review. (Fiscal Impact: Measure R Grant Revenue $350,000.00) 14.Accept as complete the City Hall heating ventilation and air conditioning system ( "HVAC ") Duct Emergency Repair Project, Project No. PW 14 -05 and authorize the City Clerk to file a Notice of Completion in the County Recorder's office. (Fiscal Impact: Measure R Grant Revenue $12,065.00) MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 9 MOTION by Council Member Fellhauer, SECONDED by Council Member Atkinson to approve Consent Agenda items 7, 8, 9, 10, 11, 12, 13, and 14. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0. F. NEW BUSINESS 15. Discussion and possible action to reallocate Proposition C Funds to Public Works Projects and modify transportation services provided by Proposition A Funds. (Fiscal Impact: To Be Determined) Meredith Petit, Recreation and Parks, gave a presentation and answered questions from Council. Council Discussion MOTION by Council Member Fellhauer, SECONDED by Council Member Dugan to table the decision until the Chamber of Commerce can weigh in on the discussion. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0. G. REPORTS — CITY MANAGER - Thanked the staff for their hard work on tonight's agenda. H. REPORTS — CITY ATTORNEY - None REPORTS — CITY CLERK- None K. REPORTS — CITY COUNCIL MEMBERS Council Member Fellhauer — 18. Discussion regarding the use of unmanned aerial devices, power model aircraft, drones, etc., within the City. (Fiscal Impact: None) Council Discussion MOTION by Council Member Fellhauer, SECONDED by Council Member Atkinson to direct staff to research and draft language for a possible Ordinance concerning this item and bring back to council at a later meeting. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0. Mark Hensley, City Attorney, stated that he will look into this matter with Chief Tavera and get back to the Council. MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 10 Council Member Atkinson — Attended (along with Council Member Dugan) the Meet the Superintendant event sponsored by ED! Council Member Dugan - None Mayor Pro Tern Jacobson — None Mayor Fuentes — Lost a tree in her yard and thanked all who helped with the matter. Mentioned the SCROC bill has been shelved. 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. Lorretta Frye, resident, questioned petitions from residents concerning the fees for Dial - A -Ride and Senior Citizens. Jane Friedkin, resident, would like to know who serves on the Golf Subcommittee and commented on the meeting in general. Jack Axelrod, resident, commented on the Drone item and other items of concern to Mr. Axelrod. Mike Robbins, resident, commented on Mr. Axelrod's comments. Council commented on Public Communications MEMORIALS — ADJOURNMENT at 12:20 AM Tracy Weaver, City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING AUGUST 19, 2014 PAGE NO. 11 SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, SEPTEMBER 9,2014,6:00 P.M. CALL TO ORDER — Mayor Fuentes at 6:00 p.m. ROLL CALL Mayor Fuentes - Present Mayor Pro Tern Jacobson - Present Council Member Atkinson - Present Council Member Fellhauer - Present Council Member Dugan - 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.. 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 CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6):-8- matters 1. Employee Organizations: Police Management Association; Police Officers Association; Police Support Services Employees Association; Fire Fighters Association; Supervisory and Professional Employees Association; Employees Association; Executive Management (unrepresented employees); Management/Confidential (unrepresented employees) Agency Designated Representative: City Manager and Steve Filarsky ADJOURNMENT at 8:14 p.m. Cathy Domann, Deputy City Clerk 11 EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding approval of ongoing professional service agreements and blanket purchase orders for FY 2014 -2015 in excess of $25,000 for various departments; and possible action to waive the formal bidding process and authorize the continued purchase of various goods and services as described below. (Fiscal Impact: General Fund $1,735,570 including $5,000 Library Developer Fees; Asset Forfeiture Fund $13,000; Prop A Fund $30,000; Water Enterprise Fund $122,750; Wastewater (Sewer) Enterprise Fund $26,750; Golf Course Enterprise Fund $96,000; Workers' Compensation Fund $97,749; Revenue /Expenditure Balance Sheet Account $200,000; Public Works Full Time Salary Accounts General Fund, Water & Wastewater Enterprise Funds $200,000) RECOMMENDED COUNCIL ACTION: (1) Authorize the City Manager to execute an amendment to Agreement No. 4095, in a form approved by the City Attorney, with High Point Strategies, LLC to (1) extend the term of the agreement to September 30, 2015; (2) authorizes payment for services up to $75,000 (General Fund); and (3) take such additional, related, action that may be desirable. (2) Authorize the City Manager to execute an amendment to Agreement No. 4242, in a form approved by the City Attorney, with to (1) extend the term of the agreement to September 30, 2015; (2) authorizes payment for services up to $60,000 (General Fund); and (3) take such additional, related, action that may be desirable. (3) Authorize the City Manager to extend ongoing service agreements with Baker & Taylor Information Services for supplying books and other library materials, and issuance of blanket purchase order not to exceed $86,800 in FY 2014 -2015 (General Fund including $5,000 Library Developer Fees) (4) Authorize the City Manager to extend contract #2235 to Innovative Interfaces, Inc., for library computer network system maintenance and issuance of blanket purchase order not to exceed $31,500 (General Fund) (5) Authorize the City Manager to extend ongoing service agreements with J. Lee Engineering provides plan check and inspection consulting services for the Building and Safety Division not to exceed $200,000 in FY 2014 -2015 (General Fund) (6) Authorize the City Manager to extend ongoing service agreement with JAS to provide plan check and inspection consulting services for the Building and Safety Division not to exceed $75,000 in FY 2014 -2015 (General Fund) (7) Authorize the City Manager to extend ongoing service agreement with CSG to provide plan check and inspection consulting services for the Building and Safety Division not to exceed $75,000 in FY 2014 -2015 (General Fund) 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 1 of 13 5 (8) Authorize the City Manager to extend ongoing service agreement with Scanning Service Corp. to provide service of scanning plans, permits & microfilm to digital for Laserfiche document imaging system for the Building and Safety Division not to exceed $20,000 and Planning Division not to exceed $23,000 in FY 2014 -2015 for a combined total amount of $43,000 (General Fund) (9) Authorize the City Manager to extend ongoing service agreement with Pacific Municipal Consultants (PMC) to provide professional planning consulting and interim staffing services for the City's Planning Division, not to exceed $35,000 in FY 2014- 2015 (General Fund) (10) Authorize the City Manager to extend ongoing service agreement with Tierra West Advisor's Inc. to provide professional planning consulting and interim staffing services for the City's Planning Division, not to exceed $35,000 in FY 2014 -2015 (General Fund) (11) Authorize the City Manager to extend ongoing service agreements with Westchester Medical Group /Center for Heart and Health to provide annual safety employees fitness for duty and executive physical examinations not to exceed $60,000 in FY 2014 -2015 (General Fund) (12) Authorize the City Manager to extend ongoing service agreement with York Risk Services Group to administer workers' compensation claims not to exceed $97,749 in FY 2014 -2015 (Workers' Compensation Fund) (13) Authorize the El Segundo Fire Department to waive the bidding process per El Segundo Municipal Code §1 -7 -10 to purchase medical and pharmaceutical supplies, and piggyback on the City of El Cajon's Bound Tree Medical, Inc. ( "Bound Tree ") Bid #005- 12, and authorize issuance of a blanket purchase order to Bound Tree for medical and pharmaceutical supplies not to exceed $27,000 in FY 2014 -2015 (General Fund) (14) Authorize the City Manager to execute a one -year contract with All Cities Management Company to provide crossing guard services for the El Segundo School District not to exceed $80,000 in FY 2014 -2015 (General Fund) (15) Authorize all El Segundo City Departments to waive the bidding process per El Segundo Municipal Code § 1 -7 -10 to purchase office supplies, related products and off - site office services, and piggyback on The Cooperative Purchasing Network (TCPN) Contract # R5023 awarded to Office Depot, and authorize issuance of a citywide open purchase order to Office Depot for office supplies, related products and off -site office services under the agreement not to exceed $65,000 in FY 2014 -2015 (General Fund) (16) Authorize all El Segundo City Departments to waive the bidding process per El Segundo Municipal Code § 1 -7 -10 to purchase City -wide advertising and authorize issuance of a citywide open purchase order to El Segundo Herald. Off -site services include Public Hearing notices, Request for Proposal notices, Department advertising and publishing, printing and distribution of the Recreation and Parks brochures not to exceed $70,000 in FY 2014 -2015 (General Fund) (17) Authorize the issuance of a blanket purchase order to Lane Donovan Partners, LLC (Agreement #3399) to provide management services for The Lakes Golf Course for an amount not to exceed $96,000 in FY 2014 -2015 (Golf Course Enterprise Fund) 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 2 of 13 (18) Authorize the City Manager to extend Agreement # 4096 with TruGreen Landcare in a form approved by the City Attorney and issuance of a blanket purchase order to provide weekly landscape services for an amount not to exceed $160,000 in FY 2014 -2015 (General Fund) (19) Authorize staff to continue to purchase gasoline and diesel fuel for City vehicles and equipment through the use of spot market purchasing in an amount not to exceed $315,000 in FY 2014 -2015 (General Fund = $250,000; Asset Forfeiture Fund = $13,000; Prop "A" Fund = $30,000; Water Enterprise Fund = $9,000; Wastewater (sewer) Enterprise Fund = $13,000) (20) Authorize the issuance of a blanket purchase order to Metron Farnier & Actaris in an amount not to exceed $100,000 in total for the purchase of single jet water meters for the City's water system in FY 2014 -2015 (Water Enterprise Fund) (21) Authorize the issuance of a blanket purchase order to Blue Diamond Materials, a division of Sully Miller Contracting Company in an amount not to exceed $30,000 for the purchase of asphalt paving materials for Street Maintenance Division projects in FY 2014 -2015 (General Fund) (22) Authorize the issuance of a blanket purchase order to DataProse (Agreement # 3227) to provide Water and Sewer divisions utility bill print and mail services for an amount not to exceed $27,500 in FY 2014 -2015 (Water & Wastewater (sewer) Enterprise Funds) (23) Authorize the City Manager to extend the ongoing professional service Agreement # 4269 with Aerotek for providing temporary staffing service for the Public Works Department not to exceed $200,000 in FY 2014 -2015 (General Fund, Water & Wastewater (sewer) Enterprise Funds) (24) Authorize the city manager to extend ongoing services agreement #4568 with Westcon Engineering for engineering plan check services for the Public Works Department not to exceed $100,000 in FY 2014 -15 (Revenue /Expenditure Balance Sheet Account Fund) (25) Authorize the city manager to extend ongoing services agreement 44622 with D.R. Consultants and Designers, Inc., for engineering plan check services for the Public Works Department not to exceed $100,000 in FY 2014 -15 (Revenue /Expenditure Balance Sheet Account Fund) (26) Authorize the City Manager to extend ongoing services agreement #4672 with Geosyntec Inc for storm water compliance program support for the Public Works Department, not to exceed $30,000 in FY 2014 -15 (General Fund) (27) Authorize the City Manager to execute a one -year contract with the Society for the Prevention of Cruelty to Animals Los Angeles for animal sheltering services, not to exceed $28,200 in FY 2014 -2015 (General Fund) (28) Authorize the City Manager to execute a one -year contract with Duncan Solutions (formerly Enforcement Technology Inc.) for processing of parking citations /collections, not to exceed $77,000 in FY 2014 -2015 (General Fund) 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 3 of 13 (29) Authorize the issuance of a blanket purchase order to San Diego Police Equipment Co., Inc. (SDPECI) and Dooley Enterprises, for the purchase of CCI -Speer and Federal ammunition, not to exceed $67,000 in FY 2014 -2015 (General Fund) (30) Authorize the City Manager to execute a one -year contract amendment and /or purchase order with Tyler Technologies for annual software licensing, maintenance, and support not to exceed $41,070 in FY 2014 -2015 (General Fund) (3 1) Authorize the City Manager to execute a one -year contract and /or blanket purchase order with Active Network for annual licensing, maintenance and support not to exceed $34,000 in FY 2014 -2015 (General Fund) 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 4 of 13 ACCOUNT NUMBER General Fund: 001 - 400 - 2901 -6407 001 - 400 - 3255 -6214 001 - 400 -2901 -5204 001 - 400 -2901 -6201 001 - 400 - 2901 -6405 001 - 400 - 3203 -5204 001 - 400 - 2506 -6214 001 - 400 - 6103 -5505 001 - 400 - 6103 -5507 001 - 400 - 6104 -5501 001 - 400 - 6104 -6217 001 - 400 - 2402 -6214 001 - 400 - 2403 -6214 001 - 400 - 2505 -6217 001 - 400 - 3108 -6206 001 - 400 - 3101 -5217 001 - 400 - 3101 -6206 001 - 400 - 4202 -5204 001 - 400 - 4302 -6206 001 - 400 - 4601 -5215 001 - 400 - 5102 -6206 Subtotal General Fund AMOUNT REFERENCE NUMBER $ 75,000.00 #1 60,000.00 #2 65,000.00 #15 70,000.00 #16 80,000.00 #14 27,000.00 #13 60,000.00 #11 20, 000.00 #3 2,200.00 #3 64, 600.00 #3 31, 500.00 #4 20, 000.00 #8 443,000.00 #5, #6, #7, #8, #9, & #10 75,070.00 #30, #31 28, 200.00 #27 67, 000.00 #29 77, 000.00 #28 30, 000.00 #21 30,000.00 #26 250,000.00 #19 160,000.00 #18 $ 1,735,570.00 Other Funds: 109 - 400 - 3105 -5215 $ 13,000.00 #19 112 - 400 - 5292 -5215 30,000.00 #19 603 - 400 - 2321 -6214 97,749.00 #12 703 - 200 - 4101 -2601 200,000.00 #24, #25 Subtotal Other Funds $ 340,749.00 501 - 400 - 7102 -5215 $ 9,000.00 #19 501 - 400 - 7102 -6206 4,600.00 #22 501- 400 - 7102 -6253 9,150.00 : #22 501 - 400 - 7201 -5207 100,000.00 #20 Subtotal Water Enterprise Fund $ 122,750.00 502 - 400 - 4301 -5215 $ 13,000.00 #19 502 - 400 - 4301 -6206 4,600.00 #22 502 - 400 - 4301 -6253 9,150.00 #22 Subtotal Wastewater Enterprise Fund $ 26,750.00 503 - 400 - 5301 -6214 $ 96,000.00 #17 Subtotal Golf Enterprise Fund $ 96,000.00 Various 001,501, & 502 Funds $ 200,000.00 #23 Subtotal Various 001,502, & 502 Funds $ 200,000.00 Grand Total $ 2,521,819.00 2014M -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 5 of 13 ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: Amount Budget: $2,521,819.00 Additional Appropriation: No Account Number(s): See Schedule (above) ORIGINATED BY: J. Richard Hogate, Purchasing Agent REVIEWED BY: Deborah Cullen, Director of Finance APPROVED BY: Greg Carpenter, City Manager J— BACKGROUND AND DISCUSSION: CITY MANAGER #1 - Hiszh Point Strateeies, LLC High Point Strategies, LLC. will continue working on behalf of the City as its advisors and advocate for the City regarding issues relating to Los Angeles World Airports (LAWA) and Los Angeles International Airport (LAX), transportation issues relating to the Metropolitan Transportation Authority, or assisting with the City's relationship with other City of Los Angeles agencies, including Department of Water and Power, and assisting with situation involving the County of Los Angeles and Wiseburn School District. This amendment is to extend the Agreement in terms through September 30, 2015 not to exceed $75,000. Account Number: 001 - 400 - 2901 -6407 (General Fund) #2 - Willdan Homeland Solutions Willdan will continue working with the City to provide professional, technical, and consulting support for the City's Emergency Management program. This amendment is to extend the Agreement in terms through September 30, 2015 not to exceed $60,000. Account Number: 001 - 400 - 3255 -6214 (General Fund) LIBRARY #3 - Baker and Taylor Baker and Taylor, the Library's leading supplier of books, music, books on CD, DVD's and other items, offers substantial savings up to 45% under retail cost. Appropriations are being requested for the following accounts for fiscal year 2014 -2015: 001 - 400 - 6104 -5501 Adult Materials $64,600 001 - 400 - 6103 -5505 Youth Materials $20,000 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 6 of 13 001 - 400 - 6103 -5507 School Library Materials $ 2,200 $86,800 94 - Innovative Interfaces Inc. Innovative Interfaces Inc. provides maintenance of the Library's online network system for cataloging, circulation, patron access to materials, archive collections and administrative functions in the amount of $31,500 for FY 2014 -2015. Account number 001 - 400 - 6104 -6217 (General Fund) PLANNING AND BUILDING SAFETY #5 - J. Lee Engineering J. Lee Engineering provides plan check and inspection consulting services for the Building and Safety Division. These services are utilized when workload exceeds the level that would preclude City staff from meeting customer service expectations. Not to exceed the amount $200,000 for fiscal year 2014 -2015. Account number: 001 - 400 - 2403 -6214 (General Fund) #6 - JAS JAS provides code enforcement, plan check and inspection consulting services for the Building and Safety Division. These services are utilized when workload exceeds the level that would preclude City staff from meeting customer service expectations. Not to exceed the amount $75,000 for fiscal year 2014 -2015. Account number: 001 - 400 - 2403 -6214 (General Fund) #7 - CSG CSG provides code enforcement, plan check and inspection consulting services for the Building and Safety Division. These services are utilized when workload exceeds the level that would preclude City staff from meeting customer service expectations. Not to exceed the amount $75,000 for fiscal year 2014 -2015. Account number: 001 - 400 - 2403 -6214 (General Fund) #8 - Scanning Services Corporation Scanning Services Corporation scans and inputs data into the City's document Laserfiche imaging system. The department is no longer microfilming plans. All necessary documents are scanned and are available on the computer. The requested funds will allow staff to keep moving in his direction. Additionally, staff hopes to begin converting historical microfilm records for both the Building and Planning divisions to a digital format so that they are available on the computer for staff and eventually viewable by the public on the internet. The Building Division budget is allocating $23,000 and the Planning Division is allocating $20,000 not to exceed $43,000 in FY 2014 -2015. Account numbers: 001 - 400 - 2402 -6214 in the amount of $20,000 and 001 - 400 - 2403 -6214 in the amount of $23,000 (General Fund) #9 - Pacific Municipal Consultants (PMC) PMC provides professional planning and interim staffing services for the Planning Division. These services are utilized when workload exceeds the level that would preclude City staff from meeting customer service expectations. Not to exceed the amount $35,000 for fiscal year 2014- 2015. Account number: 001 - 400 - 2403 -6214 (General Fund) #10 - Tierra West Advisors, Inc. Tierra West Advisors provides professional planning and interim staffing services for the 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 7 of 13 Planning Division. These services are utilized when workload exceeds the level that would preclude City staff from meeting customer service expectations. Not to exceed the amount $35,000 for fiscal year 2014 -2015. Account number: 001 - 400 - 2403 -6214 (General Fund) HUMAN RESOURCES #11 - Westchester Medical Group /Center for Heart and Health The City has a longstanding relationship with Westchester Medical Group /Center for Heart and Health to provide Safety employees annual Fitness for Duty and Executive physical examinations. This long standing physical examination program continues to meet or exceed staff s expectations. Westchester Medical Group /Center for Heart and Health is also distinguished by their extensive involvement with public sector clients. Together, with its June 2006 relocation from Los Angeles to El Segundo (360 N. Sepulveda Blvd., Suite 3000), and the significant expansion of its medical facility, the company has increased its accessibility and level of service to our employees. Westchester Medical Group /Center for Heart and Health also incorporated a respirator certification component to the Fitness for Duty examinations. The total cost for FY 14/15 is not to exceed $60,000 for annual safety employee Fitness for Duty examinations and Executive Physical examinations. Account number: 001 - 400 - 2506 -6214 (General Fund) #12 - York Risk Services Group, Inc. YORK Risk Services Group, Inc. (formerly SCRMA — Southern California Risk Management Associates, Inc.) has served as the third -party administrator (TPA) for workers' compensation claims since 1988. Following a formal request for proposal process from seven firms in 2008, the City awarded the contract to YORK Risk Services Group, Inc. The following selection criteria was considered in continuing to use YORK Risk Services Group, Inc. as the TPA for Workers' Compensation claims: • Established record of consistent professional service and reputation within the industry • High quality references from public entities, particularly full service municipalities • Staffing and experience levels • Cost effectiveness of medical and legal cost and legal cost containment services and activities • Overall cost - benefit advantages The contract between the City and YORK Risk Services Group, Inc. has an option to extend for two additional years beginning within the FY 2013 -2014. The City has chosen to extend the contract in one -year increments and is currently extending the contract for the 2015 calendar year. The amendment to this contract for the period January 1, 2015 through December 31, 2015 is not to exceed $97,749. Account number: 603 - 400 - 2321 -6214 (Workers' Compensation Fund) FIRE DEPARTMENT #13 - Bound Tree Medical, Inc. The El Segundo Fire Department has been purchasing and storing paramedic medical supplies since 1998 as mandated by the County of Los Angeles, Emergency Medical Services Agency. For seven years, the Fire Department utilized Bound Tree for paramedic medical supplies through a piggyback on an existing competitively bid award. In 2005, staff recommended a 2014a -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 8 of 13 change in vendors due to supply availability issues and billing problems. Since that time, Bound Tree has significantly improved its service and has streamlined their ordering process which is integrated with the Department's internal process. In addition to favorable pricing and timely deliveries, Bound Tree has since expanded their inventory and offers a full range of pharmaceutical supplies which allows the Fire Department to consolidate these types of purchases and receive better pricing with a single vendor. The El Segundo Fire Department recommends that the City Council waive the formal bidding process per El Segundo Municipal Code §1 -7 -10 to purchase medical and pharmaceutical supplies, and piggyback on the formal, competitive bid used by the City of El Cajon. Account number: 001 - 400 - 3203 -5204 in the amount of $27,000 for fiscal year 2014 -2015 (General Fund) FINANCE #14 - All Cities Management Comnany On September 16, 2008, City Council approved an appropriation for ESUED crossing guard services under Special Orders of Business, Item #6 within the 2008 -2009 Budget Appropriations This contract includes 6 crossing guards for a total of 5364 hours. The contract is expected to be renewed year to year as long as ACMS performance meets the City's and ESUSD's expectations. The annual cost of funding service this contract is not to exceed $80,000 for fiscal year 2014 -2015. Account number: 001 - 400 - 2901 -6405 (General Fund) 915 - Office De of Office Depot is one of the main suppliers for office supplies, related office products and off -site services for the City. Due to the high volume of purchases made at Office Depot from various Department /Divisions, purchases for FY 2014 -2015 at Office Depot can only be made through Citywide Open Purchase. The Blanket Purchase Order will be maintained with Purchasing Agent. The amount for the purchase order will not exceed $65,000 for FY 2014 -2015 in account 001 - 400 - 2901 -5204 (General Fund) Accounts Payable will prepare monthly journal entries to charge back the Department /Divisions for the month used base on monthly statement /invoices from Office Depot. #16 - El Segundo Herald, Inc. El Segundo Herald, Inc provides publishing services in the City of El Segundo. Off -site services include publishing City legal notices and advertising for City Departments and Divisions. In FY 2014/2015, estimated amount of $32,000 will be used for publishing, printing and distribution of the Recreation and Parks Quarterly Brochure. Due to high volume of services provided by El Segundo Herald, Inc from various Departments and Divisions, services for FY 2014 -2015 can only be made through Citywide Blanket Purchase Order. The Blanket Purchase Order will be maintained with Purchasing Agent. The amount for the purchase order will not exceed $70,000 for FY 2014 -2015 in account 001 - 400 - 2901 -6201. The Accounting Division will prepare monthly journal entries to charge back the Departments and Divisions for the month used base on monthly invoices from the El Segundo Herald, Inc. (General Fund) 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 9 of 13 RECREATION & PARKS #17 - Lane Donovan Partners, LLC On October 22, 2004, the City entered into a Management Agreement #3399 with Lane Donovan Partners for $108,000 a year to operate and maintain The Lakes at El Segundo. On April 16, 2013, City Council approved one of Lane Donovan's budget cut proposals of $12,000 by reducing the management fee. The amount for the contract and purchase order for FY 13/14 issued to Lane Donovan is not to exceed $96,000. Account number: 503- 400 -5301 -6214 (Golf Course Enterprise Fund) #18 - TruGreen Landcare On October 19, 2010, the City Council awarded the lowest bid for landscape maintenance services to TruGreen Landcare for three years (Consent Agenda Item # 5). Under City's Agreement # 4096, the annual cost is $137,322 for bi- weekly services or $153,504 for weekly services. The services include 12 parks, 5 median strips, Richmond School Field, Fire Station #2, Douglass underpass, City Maintenance Facility, and The Lakes parking lot and frontage. In FY 13/14, contract was amended to include maintenance services on Maple Ave. median for $6,000 per fiscal year. Staff recommends renewing the contract for one year, in a form approved by the City Attorney. The amount for the contract and purchase order for FY 13/14 is not to exceed $160,000. Account number: (001- 400 -5102 -6206 General Fund) PUBLIC WORKS #19 - Fuel for City Vehicles and Equipment Generally, fuel is purchased either through spot market purchases or long -term contracts. Spot purchasing consists of shopping around each time fuel is needed and purchasing fuel from the lowest priced vendor. This type of purchasing usually occurs when the fuel market is volatile as it has been for the last three years. During periods of stability, agencies enter into long -term fuel contracts. Pricing under long -term contact is tied to a published fuel price baseline plus a markup. The volatility in the market has forced vendors to significantly raise this markup, making long -term contracts unattractive. Under the City's last long -term contract through Los Angeles Metropolitan Public Purchasing Agents' Cooperative (LAMPPAC), there was virtually no markup. When that contract expired in September 2005, the fuel market was quite volatile and City Council authorized staff to purchase gasoline and diesel fuel through the use of spot market purchases. Many agencies including Cities of Manhattan Beach, Redondo Beach and Hawthorne have opted to purchase fuel through spot purchases in lieu of entering into long -term contracts since the expiration of the LAMPAC contract. Staff continuously monitors long -term contracts available in the industry. Pursuant to El Segundo Municipal Code (ESMC) § 1 -7 -10, relating to purchases and supplies, the City Council may at any time, by a majority vote and without amending the ESMC, waive purchasing procedures or alter proceedings to fit a specific purchase, when the waiver is not in violation of State law. Spot purchasing is the sort of modified purchasing arrangement that requires such a waiver by Council. It is possible that the total of purchases from any one vendor 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 10 of 13 may exceed $25,000; therefore, Council approval of spot purchasing is requested. The City is budgeting $315,000 for Fiscal Year 2014 -2015 in accounts: 001 - 400 - 4601 -5215 in the amount of $250,000 (General Fund) 109- 400 - 3105 -5215 in the amount of $13,000 (Police - Asset Forfeiture Fund) 112- 400 -5292 -5215 in the amount of $30,000 (Prop "A" Fund) 501- 400 - 7102 -5215 in the amount of $9,000 (Water Enterprise Fund) 502- 400 - 4301 -5215 in the amount of $13,000 (Wastewater (sewer) Enterprise Fund) 420 - Water Meters — Meti-on Farnier & Actaris The City's water distribution system includes approximately 250 large commercial compound water meters three to eight inches in diameter. As large meters age, they become less accurate and tend to register water usage that is below actual consumption. It is common in the water industry to replace older large meters as they are typically the greatest source of unbilled water or lost water. When meters are replaced, the Water Division installs single jet water meters rather than compound water meters. The single jet meters provide increased metering accuracy, excellent low flow registration, and less maintenance part. The cost to replace each meter ranges from $2,000 to $5,000, dependent upon size. Staff plans to continue replacing failing meters in FY 2014 -2015 and recommends continuing to purchase meters from Metron Farrier & Actaris, the only two vendors that supply this type of meter, in an amount not to exceed $100,000 in total. Account number: 501- 400 - 7201 -5207 (Water Enterprise Fund). 921 - Asphalt Paving Materials — Blue Diamond Matcrials The Street Maintenance Division repairs approximately 50,000 square feet of pavement annually. Pavement repair work includes potholes, pavement failures, repairs from tree root damage, utility cuts, general street repairs throughout the City and preparation for slurry seal projects. Through the Fiscal Year 2014 -2015 budget process, $30,000 was budgeted for the annual expenditure of asphalt paving materials. Street Maintenance Division personnel drive a City dump truck to retrieve asphalt paving materials. There are three local vendors that supply the materials. Pricing for asphalt paving materials is variable and dependent upon the oil and aggregate market. The pricing for asphalt concrete in the table above was based on a spot market quote on August 27, 2014. Staff recommends continuing the purchase or asphalt paving materials from Blue Diamond Materials, on a single- source basis, in an amount not to exceed $30,000 for the following reasons: 1. Closer proximity to City reduces staff driving time, fuel and liability 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 11 of 13 Location Miles from City C -2 Asphalt Concrete /Ton All American Asphalt Westminster 27 $82.00 Blue Diamond Materials Inglewood & Southgate 5 & 17 $68.00 - $70.00 Vulcan Materials Los Angeles 19 $68.00 - $78.00 Pricing for asphalt paving materials is variable and dependent upon the oil and aggregate market. The pricing for asphalt concrete in the table above was based on a spot market quote on August 27, 2014. Staff recommends continuing the purchase or asphalt paving materials from Blue Diamond Materials, on a single- source basis, in an amount not to exceed $30,000 for the following reasons: 1. Closer proximity to City reduces staff driving time, fuel and liability 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 11 of 13 2. Availability of materials — two locations 3. Lowest overall cost when factoring in travel time costs and staff downtime 4. Reduced temperature loss from being transported shorter distances At this time, Blue Diamond Materials is the more reasonable choice based upon pricing, proximity and availability. Staff will continue to monitor asphalt concrete prices and return to Council if a change in vendors is warranted. Account number: 001 - 400 - 4202 -5204 (General Fund) #22 - DataProse DataProse, Inc. provides print and mailing services to the City for Water and Wastewater (sewer) Utility billings. For FY 2014 -2015, staff recommends amending Agreement # 3227, to reflect a not to exceed amount of $27,500, broken down as follows: Professional Services: • 501- 400 - 7102 -6206 = $4,600 (Water Enterprise Fund) • 502- 400 - 4301 -6206 = $4,600 (Wastewater (sewer) Enterprise Fund) Postage: • 501- 400 - 7102 -6253 = $9,150 (Water Enterprise Fund) • 502- 400 - 4301 -6253 = $9,150 (Wastewater (sewer) Enterprise Fund) #23 - Aerotek On March 1, 2012, the City entered into an On -call Service Agreement with Aerotek to provide temporary staffing in an amount not to exceed $25,000 for FY 2011 -2012. For FY 2012 -2013, staff amended Agreement # 4269 for another fiscal year to provide temporary staffing needed by Public Works Department in an amount not to exceed $200,000. For FY 2014 -2015, staff recommends amending Agreement # 4269 for another fiscal year to provide temporary staffing needed by Public Works Department in an amount not to exceed $200,000. Savings from various full -time salaries accounts in Public Works Department will be used to fund this contract in FY 2014 -2015 (General Fund, Water & Wastewater (sewer) Enterprise Funds from Public Works Full Time Salaries Accounts) #24 - Westcon Engineering, Inc. In February, 2014 the City entered into professional service agreement #4568 with Westcon Engineering, Inc. (Westcon) to provide plan check services for Public Works. These services are needed to assist the Engineering Division process the increasing volume of expedited plan check requests that the city is receiving due to increased building activity. Staff recommends that the contract be extended through FY 2014 -15 for an additional $100,000, which will be reimbursed through the collection of plan check fees. Account number: 703 - 200 - 4101 -2601 Revenue /Expenditure Balance Sheet Account. #25 - D.R Consultants and Designers, Inc. In June, 2014 the City entered into professional service agreement #4622 with D.R Consultants and Designers, Inc. to provide plan check services for Public Works. These services are needed to assist the Engineering Division process the increasing volume of expedited plan check requests that the city is receiving due to increased building activity. Staff recommends that the contract be extended through FY 2014 -15 for an additional $100,000, which will be reimbursed through the collection of plan check fees. Account number: 703 - 200 - 4101 -2601 Revenue /Expenditure Balance Sheet Account. 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 12 of 13 #26 - Geosyntec. Inc. In August, 2014, the City entered into professional service agreement #4672 with Geosyntec Consultants to provide MS4 training to City staff as required under the new storm water mandates and to provide technical support in managing the City's Enhance Watershed Management Programs and Coordinated Integrated Monitoring Programs. Geosyntec's services are an extremely cost effective way to assist the City in meeting its requirements under the MS4 permit. Staff recommends that the contract be extended through FY2014 -15 for an additional $30,000, which will be funded through the storm water account. Account number: 001 -400- 4302 -6206 (General Fund) POLICE DEPARTMENT #27 - Society for the Prevention of Cruelty to Animals Los Angeles (SPCALA) The SPCALA provides animal sheltering services for the Police Department's Animal Control program. The SPCALA is utilized to shelter dogs, cats, wild animals, etc. that are captured, found or given to the Animal Control program. The City has contracted with the SPCALA for sheltering services since the Police Department took over all animal control functions not to exceed $28,200 in fiscal year 2014 -2015. Account number: 001 - 400 - 3108 -6206 (General Fund) #28 - Duncan Solutions Duncan Solutions provides a maintenance contract for the Police Department Traffic Division's Processing system. This system is utilized by parking personnel to issue parking citations. Duncan Solutions also provides a collection service for delinquent parking citations not to exceed $77,000 in fiscal year 2014 -2015. Account number: 001 - 400 - 3101 -6206 (General Fund) #29 - San Diego Police Equipment Co. Inc. SDPECI and Dooley Enterprises (Dooley) San Diego Police Equipment provides CCI -Speer and Federal Ammunition and Dooley provides Winchester Ammunition to the Police Department. SDPECI is the only factory authorized law enforcement distributor in the State of California to sell CCI -Speer and Federal ammunition. Dooley is the only factory authorized law enforcement distributor in the State of California to sell Winchester Ammunition. Both entities supply both duty and training ammunition to the department, not to exceed $67,000 in FY 2013/2014. Account number: 001 - 400 - 3101 -5217 (General Fund) #30 - Tyler Technologies Eden Financial Management System The City utilizes Tyler Technologies financial software to manage the City's General Ledger, Accounts Receivable, Accounts Payable, Payroll, and Human Resources. This item is for annual licensing, maintenance, and support of these systems. The total cost will not exceed $41,070 for fiscal year 2014 -2015. Account number: 001 - 400 - 2505 -6217 (General Fund) #31 - Active Network The vendor provides the Class Cashier & Scheduling for the city -wide program. This item is for annual licensing, maintenance and support of these systems. The total cost will not exceed $34,000 in fiscal year 2014 -2015. Account number: 001 - 400 - 2505 -6217 (General Fund) 2014 -09 -16 Citywide Blanket POs for FY 14 -15 FINAL Page: 13 of 13 EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: September 16, 2014 AGENDA HEADING: Consent Consideration and possible action to award a Professional Services Agreement to Willdan Energy Solutions for implementation of Energy Efficiency Strategic Planning Activities using grant funds recently awarded by Southern California Edison (Fiscal Impact: $100,125 in grant fund award). RECOMMENDED COUNCIL ACTION: 1. Authorize the City Manager to execute an agreement with Willdan Energy Solutions, in a form approved by the City Attorney, for implementation of the Energy Efficiency Strategic Plan, Phase 3 activities. 2. Alternatively, discuss and take other possible actions related to this item. ATTACHED SUPPORTING DOCUMENTS: Scopes of Work FISCAL IMPACT: $100,125 receipt of grant monies Amount Budgeted: None Additional Appropriation: N/A Account Number(s): To be assigned ORIGINATED BY: Nina Tarnay, Project Manager _ W REVIEWED BY. Stephanie Katsouleas, Public Works Director APPROVED BY: Greg Carpenter, City Manager./ BACKGROUND AND DISCUSSION: In April, 2011, Southern California Edison (SCE) awarded El Segundo a $485,000 (Phase VII) Energy Efficiency Strategic Planning Strategies grant to implement a variety of energy efficiency educational programs, including training, sub - metering, and on -line permitting. The City is wrapping up the final tasks required under this grant in advance of the December 31, 2014 completion deadline. Following the success of its Phase VII program SCE released a Phase III round of Request for Proposals (RFP) to continue supporting energy efficiency programs. In response to the RFP, the City submitted a proposal to: (1) Develop and adopt programs to encourage energy efficiency work through the City's online permitting process developed in Phases 1 and 2; and IV (2) Develop implementation processes and procedures to embed energy efficiency into City operations, including completing various energy policies including retro- commissioning policy, Green Building Policy, Benchmarking Policy, the Greenhouse Gas Inventory Policy and setting up tools such as Enterprise Energy Management Information System and Portfolio Manager. On May 10, 2013, SCE notified the City that it was selected for participation in Phase III and awarded El Segundo a $111,250 grant. Of the total grant amount, $100,125 is earmarked for direct implementation work and $11,125 for administrative support. As with Phase I and II, staff recommends that Willdan Energy Solutions once again be retained to carry out the bulk of tasks associated with this project. Willdan very successfully carried out work under the previous phases and is in the process of completing the ramp -down tasks necessary to close out that grant. For continued continuity and due to its directly relevant experience, staff feels that Willdan is the most qualified firm to build on the work completed to date at the most competitive rate, primarily because there is no learning curve associated with implementation. Willdan's proposal for consultation/direct implementation services for Phase 3 of the Energy Efficiency Strategic Planning Strategies work is attached. Therefore, staff recommends that City Council award a Professional Services Agreement, in a form approved by the City Attorney, to Willdan Energy Solutions for Phase III Energy Efficiency Strategic Planning Activities. Scope of Work The Willdan team (Willdan) is prepared to help the City of El Segundo with consultant services related to the implementing of El Segundo's Strategic Plan Program Phase 3. Our scope of work includes support on the following ESSP tasks: ■ Task 1: Kick -off Meeting, Program Data, Invoicing, and Reporting Tool ■ Task 2: Develop & Adopt Program - Encourage EE Through Online Permitting Process ■ Task 3: Develop Implementation Processes & Procedures to Embed EE into City Operations ■ Task 4: Invoicing and Reporting ■ Task 5: Task Ramp -Down and Shut -Down Program Task 1: Kick -off Meeting, Program Data, Invoicing and Reporting Tool A. Attend Program Kick -Off Meeting Willdan will attend the Program kick -off meeting with SCE to discuss Program logistics, coordination, evaluation, monitoring and verification coordination, invoicing requirements, and any remaining contract issues at a time and place to be determined by SCE after the issuance of the notice to proceed (NTP). The tasks related to the kick -off meeting include the following: To avoid duplication and unnecessary expenditures, SCE will provide information and guidance regarding currently available resources (e.g., available training programs, templates, etc.) that will be used by Willdan in assessing pre- existing resources. This will enable Willdan to focus efforts on the areas in each task where gaps exist. B. Program Data, Invoicing and Reporting Tool Training Willdan will attend the kick -off meeting to be trained on the use of SCE's invoicing and reporting tool (IR Tool). Thereafter, Willdan will use the IR Tool to provide El Segundo invoices and Monthly Reports each Month. Task 1 Deliverables: Deliverables Due Dates 1. Attend a Program Kick -off meeting Determined by SCE after the issuance of that includes IR Tool training. the NTP. 2. Delivery of updated IR tool to CPM for IR Tool training plus five (5) Business review and approval. Days. Task 2: Develop and Adopt Program to Encourage EE Through the On-Line Permitting Process (S6 0,075) Willdan will work with the City to fully integrate EE into its planning and permitting processes through the development of a Project Builder Expert System (ProjectBuilder). In doing so, Willdan will build upon and leverage the success of El Segundo's Online Permit Center, which promotes EE for frequent "over the counter' permits and was developed through the Strategic Plan Strategies Phase 1 solicitation. The ProjectBuilder will expand the concept of the Online Permit Center by addressing EE measures for construction projects from inception through final inspection. The intent of the ProjectBuilder is to influence larger, more complicated projects including major renovations, additions, and new construction to utilize EE and DR Measures. ProjectBuilder will expand more fully into the AttachnienV Proposal for Consulting Services 3 401 City of E/ Segundo construction project life cycle, offering an enhanced and earlier opportunity to influence project decisions concerning energy efficiency, thereby gain access to deeper energy savings. A. Task Goals and Objectives Willdan will provide all materials developed under this task to El Segundo for review and comment: 1. Report on Status of Consultant to Support the Task: Willdan will submit to El Segundo an email reporting on the status of having hired expertise (Willdan Team) to provide support to complete the activities in this task; 2. Assessment and Planning Report for Project Builder Expert System (Draft and Final): As an initial step, Willdan will review and assess the on -line permitting processes and systems of other local governments to gain insight from their experiences. Next Willdan will evaluate ProjectBuilder for compatibility and integration with its existing back -office processing and reporting systems. As part of this Assessment and Planning Report, Willdan will also provide: • Description of the system and how it will promote energy efficiency to permit applicants and other viewers; • Policy statement that describes the functionality of the system, required resources and timeline for completion; and • Approach to be used to assess the effectiveness of ProjectBuilder. The Assessment and Planning Report for ProjectBuilder will also include a discussion of the sustainability of the City's Program(s) after SCE funds are expended. The report will also include a list of all non -SCE funding sources and amount funded by each non -SCE source required to complete this task. A contingency plan will also be included if unexpected delays or shortfalls occur in receiving non -SCE funding. Based on feedback received, Willdan team will submit a final draft of the Assessment and Planning Report. 3. Detailed Specification Report for Project Builder Expert System: The detailed specification report will provide all requirements for the system, including any required interfaces, and the plan for installation and implementation of the system. 4. Report on the Installation and Launch of Project Builder Expert System: Willdan will install, test and launch ProjectBuilder. Willdan will prepare a report on the installation and launch of the Project Builder Expert System. This report shall include a discussion of the installation process, identifying any installation issues that arose, as well as "screen shots" of the installed system that show how the system operates. 5. Plan for Sharing Lessons Learned /Best Practices with Other Local Governments (Draft and Final): Willdan will prepare a draft report describing lessons learned and its understanding of best practices experienced during the development and implementation of ProjectBuilder. Willdan will then also submit a draft plan for sharing this report with other local governments. Based on feedback received during the draft review and stakeholder input, Willdan will prepare and submit to SCE a final plan and will take steps to assure that the final version of the Program will meet the needs of the City and peer jurisdictions. 6. Monthly Report: Status of this task in the Monthly Report of all on -going activities including a list of Monthly achievements and outstanding issues. A achrnent: Proposal for Consulting Services 4 City of El Segundo A. Task Performance Indicators Willdan will fulfill the following goals and objectives: Leverage existing resources through a review and assessment of similar online permitting systems; Encourage more energy efficiency permits through implementing simpler processes: a. Offer ProjectBuilder to residents, business owners, and contractors for energy efficiency projects: i. Install ProjectBuilder; ii. Streamline internal energy efficiency permit procedures; Encourage "reach" energy efficiency projects, by increasing the frequency and improving communication with contractors on energy efficiency "reach `opportunities through ProjectBuilder. The Implementer (Willdan) will, at a minimum, track the following information: 1. Number of energy efficiency project permits processed through ProjectBuilder; 2. Type of equipment for energy efficiency projects tracked post - ProjectBuilder implementation; and 3. Time to process permits using ProjectBuilder Willdan will quantitatively assess the value and benefits of the Program through; 1. Tracking of energy efficiency projects in El Segundo, including "reach" energy efficiency activities exceeding Title 24 requirements; 2. Analyzing constituent satisfaction feedback results. Task 2 Deliverables: Deliverables Due Dates 1. Report on status of Consultant to NTP plus 1 Month assist in task im lementation 2. Draft Assessment and Planning NTP plus 1 Month Report for Project Builder Expert System 3. Final Assessment and Planning NTP plus 45 Calendar Days Report for Project Builder Expert System 4. Detailed Specification Report for NTP plus 3 Months Project Builder Expert S stem 5. Installed and Launched Project Builder NTP plus 10 Months Expert System 6. Report on the Installation and Launch NTP plus 12 Months of the Project Builder Ex ert S stem 7. Plan for sharing lessons learned /best NTP plus 12 Months practices with other local governments 8. Monthly Report of tracked Monthly with Invoicing Requirements Performance Attachment: Proposal for Consulting Services 5 City of El Segundo Task 3: Develop Implementation Processes & Procedures to Embed EE into Implernenter's Operations ($40,050) By participating in Phase 1 of the Strategic Plan Program, El Segundo completed a variety of EE policies, including a retro- commissioning policy, green building policy, benchmarking policy, a greenhouse gas inventory policy. Additionally, as part of Phase 1, El Segundo set up tools such as Enterprise Energy Management Information System (EEMIS) and Portfolio Manager. These policy documents and tools have laid the groundwork for long -term, sustainable energy savings for El Segundo. However, individual policies, without proper implementation of those policies, may not generate actual energy savings; therefore, the gap between policy and implementation needs to be bridged. Willdan will develop implementation processes and document working procedures for the policies and tools developed in Phase 1 of the Strategic Plan Program. By accomplishing this task, El Segundo's staff will refine processes that will enable staff to work through the roadblocks and challenges inherent in implementing policy, progressing more expeditiously and strategically than otherwise would have been possible. 1. Task Goals and Objectives Willdan will provide all materials developed under this task to El Segundo and SCE for review and comment: 1. Report on Status of Consultant to Support the Task: Willdan will submit to El Segundo an email reporting on the status of having hired expertise (the Willdan Team) to provide support to complete the activities in this task; 2. Assessment and Planning Report for the Development of Implementation Procedures and Processes (Draft and Final): As an initial step, Willdan will review and assess the implementation procedures and processes of other local governments to gain insight from their experiences. Next Willdan will evaluate the following energy policies and describe an approach to develop integrated procedures for optimal implementation across departments and functions: • Retro- commissioning Policy • Benchmarking Policy • LEED Certification Policy • Greenhouse Gas Inventory Policy • Enterprise Energy Management Information System (EEMIS) • Portfolio Manager Benchmarking Tool Willdan shall determine appropriate metrics against which the effectiveness of this task will be assessed. During development of the implementation procedures, any disparate policies and tools currently in place will be interlinked. Willdan will coordinate the many overlapping functionalities into more cohesive energy management procedures that El Segundo's staff can more easily understand and implement. Establish Energy Management Team: Willdan will encourage internal collaboration with key department leads concerning energy costs, energy usage, and other relevant information by allowing users access to the software's reporting and analysis dashboard. Increasing the visibility of energy usage will help to educate all stakeholders on the impact of energy consumption and costs at each facility. Willdan will develop an Energy Management Team that will meet with energy management staff, building management staff, and other representatives to help develop a scope of work that identifies the steps necessary to Attachment: Proposal for Consulting Services 6 City of El Segundo implement and sustain El Segundo's energy efficiency policies. Willdan will document in a memo the establishment of, and tasks to be performed by, the Energy Management Team. 4. Implementation Procedures and Processes (Draft and Final): Willdan will develop a draft Implementation Procedures and Processes report based on the methodology outlined in the Assessment and Planning Report and provide to El Segundo and SCE and relevant industry stakeholders and other experts for review and comment. Based on feedback received, Willdan will submit to El Segundo /SCE a final Implementation Procedures and Processes' report. 5. Plan for Sharing Lessons Learned /Best Practices with Other Local Governments (Draft and Final): Willdan will prepare a draft report describing lessons learned and its understanding of best practices experienced during the development of implementation procedures and processes. Willdan will also submit a draft plan for sharing this report with other local governments. Based on feedback received during the draft review and stakeholder input, Willdan will submit to El Segundo /SCE a final report and will take steps to assure that the final version of the Plan will meet the needs of El Segundo and peer jurisdictions. 6. Report on Task Performance Indicators: Willdan will submit a report on the Task Performance Indicators identified below, as well as in the Assessment and Planning Report for this task. This is a crucial step to determine the effectiveness of this task in meeting its objective of "Embedding Energy Efficiency into City Operations ". 7. Monthly Report: Willdan will provide a status of this task in the Monthly Report of all on- going activities including a list of Monthly achievements and outstanding issues. 2. Task Performance Indicators Willdan will identify and describe appropriate metrics that can be used to track task performance and progress in the Assessment and Planning Report. These Task Performance Indicators will be reported to SCE for review. Willdan will quantitatively and /or qualitatively assess the value and benefits of the task through metrics developed in the Assessment and Planning Report for this task. Metrics may include the following: 1. Assessing energy cost and consumption by utility type and provider pre -and post - Implementation Procedures and Processes; 2. Qualitatively assessing the effectiveness of the Implementation Procedures and 3. Processes through participant surveys; Assessing energy cost per square foot and cost per employee pre -and post - Implementation Procedures and Processes; 4. Assessing carbon emissions pre -and post- Implementation Procedures and Processes; 5. Assessing accuracy of budgets and forecasts pre -and post- Implementation Procedures and Processes; and 6. Assessing avoided costs pre -and post- Implementation Procedures and Processes. Attachment: Proposal for Consulting Services 7 City of El Segundo Task 3 Deliverables Deliverables Due Dates 1. Report on status of Consultant to NTP plus 1 Month support the task 2. Draft Assessment and Planning NTP plus 1 Month Report for the Development of Implementation Procedures and Processes 3. Final Assessment and Planning NTP plus 45 Calendar Days. Report for the Development of Implementation Procedures and Processes NTP plus 3 Months 4. Establish Energy Management Team 5. Draft Implementation Procedures NTP plus 9 Months and Processes 6. Final Implementation Procedures _ NTP plus 11 Months and Processes 7. Report on Task Performance NTP plus 14 Months Indicators 8. Plan for sharing lessons NTP plus 12 Months learned /best practices with other local governments 9. Monthly Report: Status of task and Monthly with Invoicing Requirements tracked Performance Indicators Task 4: Invoicing and Reporting A. Invoicing Willdan will submit to El Segundo an Invoice Package which includes supporting documentation in accordance with the requirements delineated Appendix A, "Invoicing Requirements ", the Ts &Cs (Section 4), and Attachment No.1 of El Segundo's Contract. SCE may amend the invoicing requirements from time to time, at which time SCE will notify El Segundo of the changes and issue a Change Order. Willdan will implement these modifications in a timely manner and reflect any changes in future invoice documentation. B. Reporting Willdan will submit to El Segundo all required reports initially as a draft for review and approval by El Segundo and SCE. Willdan will be responsible for implementing, adhering to, and the submission of, the items as described in Appendix D, "Regulatory Reporting Requirements ", the Ts &Cs, and Attachment No.1 of El Segundo's Contract. SCE may amend the reporting requirements from time to time, at which time SCE will notify El Segundo of the changes and issue a Change Order. Willdan will implement these modifications in a timely manner and reflected in future invoice documentation. Attachmmit; Proposal for Consulting Services 8 City of El Segundo Task 4 Deliverables Deliverables Due Dates A. Prepare and submit invoice and 15th Calendar Day of the Month supporting documentation to El per Appendix A, "Invoicing Segundo Re uirements" B. Submit final invoice to El Segundo Aril 15, 2015 C. Prepare and submit Monthly 15 Calendar Day of the Month per Reports to El Segundo Appendix D, "Regulatory Reporting Requirements" D. Submit Commission Reports Semi - annually and annually A. Program Shut -Down: All Program operations will be completely shut down after the last day of the effective period of the Contract, and no later than December 31, 2014, with the exception of preparation and submittal of the Final Report, as defined in Task 6 below. Task 5 Deliverables Deliverables Due Dates A. Complete all services No later than December 31, 2014 Task 6: Submit Final Program Report After Program completion, the Implementer will submit a final report that reviews the Program's progress and accomplishment (the "Final Report "). The Final Report will include the information referenced in Appendix E, "Final Program Report Template ". Task 6 Deliverables: Deliverables Due Dates A. Submit draft Final Report for SCE No later than February 15, 2015 Review and approval B. Submit revised Final Report for The earlier of March 31, 2015 or SCE review and approval within 2 weeks of receipt of SCE comments Attachment: Proposal for Consulting Services 9 M/ City of El Segundo Budget Summary The Willdan Team will not exceed the total amount budgeted by El Segundo for this program of $100,125. Table 2: Rate schedule Job Team Member Company Responsibility Hourly Function Rate Principal- Katie Wilson Willdan The Principal -in- Charge will provide $145 in- Charge management oversight of the project ensuring quality and establishing quality i control procedures. I Project Rosie Kang Willdan The Project Manager will manage the day $125 Manager to day activities for Willdan, providing implementation analysis and coordination with city staff and team members. Energy Ian Villazana Willdan The Energy Analyst will lead efforts in $92 Analyst processes and procedures and evaluating local jurisdictions. Software Gary V. Bufkin GVBCC Software Developer will design, develop $125 Developer and implement the custom software for this project. ti Attachment: Proposal for Consulting Services 10 City of El Segundo NA/ EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to authorize the City Manager to execute a 3 -year License Agreement in a form approved by the City Attorney with the El Segundo Cooperative Nursery School to operate a non - profit pre - school at the Clubhouse Building. (Fiscal Impact: Reservation revenues of $2,000 in Fiscal Year 2014/15, $2,500 in Fiscal Year 2015/16, and $3,000 in Fiscal Year 2016/17) RECOMMENDED COUNCIL ACTION: 1. Authorize the City Manager to execute an agreement with El Segundo Cooperative Nursery School in a form approved by the City Attorney 2. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Draft License Agreement and Scope of Services FISCAL IMPACT: Reservation Revenues of $2,000 in Fiscal Year 14/15, $2,500 in Fiscal Year 15/16, and $3,000 Fiscal Year 16/17 Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): 001 - 300 - 0000 -3879 (Reservation Fees) ORIGINATED BY: Jesse Bobbett, Acting Recreation Superintendent J$ REVIEWED BY: Meredith Petit, Director of Recreation and Parks APPROVED BY: Greg Carpenter, City Manager, BACKGROUND & DISCUSSION: The El Segundo Cooperative Nursery School ( "Co -Op ") has been operating a non - profit pre - school in El Segundo since 1947. Since the early 1950's the school has utilized the Clubhouse Building at Recreation Park as its home. During this time, it has served the community by offering this low cost program to El Segundo Residents utilizing limited funds for 2 part-time staff members and hundreds of parent volunteer hours to run the program. The program currently serves 24 students per academic year and operates 3 days per week, Tuesday- Thursday, from 8:30 a.m. — 12:30 p.m., from early September through early June. On May 20, 2014, the City Council approved a fee schedule establishing new hourly rates for Recreation and Parks Department facilities. The newly approved rate for the school to reserve the Clubhouse would be $15 per hour. The school utilizes the facility approximately 400 hours per year, yielding fees of nearly $6,000. Due to their non - profit status and low registration costs of the program, paying the entire fee would potentially force the closure of the school. In August 2014, Recreation and Parks Staff met with the school to discuss the upcoming change in reservation fees. Through this meeting, it was determined that the school could realistically afford about half of the fees, but has requested the fees to be phased in over time. Staff recommends entering into a License Agreement for the remainder of the 2014 -15 academic year at a rate of $2,000.00. The proposed license agreement would meet the needs of the 22 families LICENSE AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND EL SEGUNDO COOPERATIVE NURSERY SCHOOL THIS LICENSE is made and executed this 17th day of September, 2014, between the CITY OF EL SEGUNDO, a municipal corporation ( "CITY "), and EL SEGUNDO COOPERATIVE NURSERY SCHOOL, a California non - profit corporation ( "LICENSEE "). 1. LICENSE; DESCRIPTION OF PROPERTY. CITY licenses LICENSEE to use, on the terms and conditions in this License, real property located at the George E. Gordon Clubhouse, 300 E. Pine Ave., El Segundo, CA ( "Property"). CITY's action is not, and should not be construed to be, a conveyance of a property interest or a lease; it is a license to use property only. 2. USE OF PROPERTY. A. LICENSEE may temporarily use the Property for the purposes of operated a competitive youth swim team program. B. CITY may change, amend, or terminate LICENSEE's use of Property at any time, and in its sole discretion, verbally or in writing. 3. TERM. Except as provided in Section 4, the term of this license will begin on October 1, 2014 and end on September 30, 2017. Upon mutual written agreement between the parties, this License may be renewed for additional time. 4. TERMINATION. A. As stated above, CITY may terminate this License at any time with or without cause, upon written or verbal notification. Termination will be effective upon notification, unless CITY specifies otherwise. B. LICENSEE may terminate this License at any time in writing at least five (5) days before the effective termination date. C. By executing this document, LICENSEE waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. D. Upon termination, LICENSEE will remove all personal property and improvements from Property within two (2) days. Property will be left in a clean and orderly fashion. 5. COMPENSATION. In exchange for the use of the facilities at Property, LICENSEE agrees to pay CITY a sum of Two Thousand Dollars ($2,000) in FY 14/15, Two Thousand Five Page 1 of 7 Hundred ($2,500) in FY 15/16, and Three Thousand Dollars ($3,000) in FY 16/17 for the term of this License. 6. CONDEMNATION. If all or part of Property is acquired by eminent domain or purchase in lieu thereof, LICENSEE acknowledges that it will have no claim to any compensation awarded for the taking of Property or any portion thereof or for loss of or damage to LICENSEE's improvements. 7. RELOCATION BENEFITS. LICENSEE acknowledges that it has been informed that CITY is a public entity and that Property was previously acquired by CITY for a public purpose. LICENSEE further acknowledges that any rights acquired under this License arose after the date of acquisition of Property and that said rights are subject to termination when Property is needed by CITY. LICENSEE hereby acknowledges that at the time of said termination of this License by CITY, it will not be a "displaced person" entitled to any of the relocation assistance or benefits offered to displaced persons under State or Federal law. 8. ALTERATIONS. LICENSEE will not make, or cause to be made, any alterations to Property, or any part thereof, without CITY's prior written consent. 9. HAZARDOUS /TOXIC WASTE. CITY has not, nor, to CITY's knowledge, has any third party used, generated, stored or disposed of, or permitted the use, generation, storage or disposal of, any Hazardous Material (as defined below) on, under, about or within Property in violation of any law or regulation. LICENSEE agrees that it will not use, generate, store or dispose of any Hazardous Material (as defined below) on, under, about or within Property in violation of any law or regulation. LICENSEE agrees to defend and indemnify CITY, to the extent stated in Section 12, against any and all losses, liabilities, claims or costs arising from any breach of any warranty or agreement contained in this Section. As used in this Section, "Hazardous Material" means any substance, chemical or waste that is identified as hazardous, toxic or dangerous in any applicable federal, state or local law or regulation (including petroleum and asbestos). 10. SIGNS. LICENSEE will not place any sign upon Property without CITY's prior written consent. LICENSEE will pay for all costs of any approved signage and comply with all applicable sign codes and ordinances. 11. ASSIGNMENT. LICENSEE will not be permitted to assign this License or any interest therein. 12. INDEMNIFICATION. A. LICENSEE will hold CITY harmless and free from any and all liability arising out of this License, or its performance, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be against it, by suit or otherwise, whether the same be groundless or not, arising out of this License, or its performance, pursuant to this License, LICENSEE will defend CITY (at Page 2 of 7 CITY's request and with counsel satisfactory to CITY) and will indemnify it for any judgment rendered against it or any sums paid out in settlement or otherwise. B. For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers. C. LICENSEE expressly agrees that this release, waiver, and indemnity agreement is intended to be as broad and inclusive as is permitted by the law of the State of California and that if any portion is held invalid, it is agreed that the balance will, notwithstanding, continue in full legal force and effect. D. It is expressly understood and agreed that the foregoing provisions will survive termination of this License. E. The requirements as to the types and limits of insurance coverage to be maintained by LICENSEE as required by Section 13 below, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by LICENSEE pursuant to this License, including but not limited to the provisions concerning indemnification. 13. INSURANCE. A. Before commencing performance under this License, and at all other times this License is effective, LICENSEE will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Type of Insurance Commercial general liability: Business automobile liability: Workers compensation Limits combined single) $2,000,000 $1,000,000 Statutory limits B. Commercial general liability insurance will meet or exceed the requirements of the most current ISO Forms. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies must be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable except upon thirty (30) days prior written notice to CITY except for nonpayment of premiums which may be cancelable upon ten (10) day notice. Page 3 of 7 C. LICENSEE will furnish to CITY duly authenticated Certificates of Insurance and Endorsements evidencing maintenance of the insurance required under this License and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." Certificate(s) must reflect that the insurer will provide thirty (30) day notice of any cancellation of coverage. CONTRACTOR will require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions. D. Should LICENSEE, for any reason, fail to obtain and maintain the insurance required by this License, CITY may obtain such coverage at LICENSEE's expense and charge the cost of such insurance to LICENSEE under this License or terminate pursuant to Section 4. 14. COMPLIANCE WITH LAW. LICENSEE will, at its sole cost and expense, comply with all of the requirements of all federal, state, and local authorities now in force, or which may hereafter be in force, pertaining to Property and will faithfully observe in the use of Property all applicable laws. The judgment of any court of competent jurisdiction, or the admission of LICENSEE in any action or proceeding against LICENSEE, whether CITY be a party thereto or not, that LICENSEE has violated any such ordinance or statute in the use of Property will be conclusive of that fact as between CITY and LICENSEE. 15. BREACH OF AGREEMENT. The violation of any of the provisions of this License will constitute a breach of this License by LICENSEE, and in such event said License will automatically cease and terminate. 16. WAIVER OF BREACH. Any express or implied waiver of a breach of any term of this License will not constitute a waiver of any further breach of the same or other term of this License. 17. ENTRY BY CITY AND PUBLIC. This License does not convey any property interest to LICENSEE. Except for areas restricted because of safety concerns, CITY and the general public will have unrestricted access upon Property for all lawful acts. 18. INSOLVENCY; RECEIVER. Either the appointment of a receiver to take possession of all or substantially all of the assets of LICENSEE, or a general assignment by the LICENSEE for the benefit of creditors, or any action taken or offered by LICENSEE under any insolvency or bankruptcy action, will constitute a breach of this License by LICENSEE, and in such event said License will automatically cease and terminate. 19. NOTICES. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this License or by law to be served on or given to Page 4 of 7 either party to this License by the other party will be in writing and will be deemed served when personally delivered to the party to whom they are directed, or in lieu of the personal service, upon deposit in the United States Mail, certified or registered mail, return receipt requested, postage prepaid, addressed to LICENSEE at: El Segundo Co -Op Nursery School 300 East Pine Street El Segundo, CA 90245 3646 Barry Ave, Los Angeles, CA 90066 or to CITY at: Department of Recreation & Parks 350 Main Street El Segundo, CA 90245 Either party may change its address for the purpose of this Section by giving written notice of the change to the other party. 20. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that agreements ancillary to this License and related documents to be entered into in connection with this License will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 21. GOVERNING LAW. This License has been made in and will be construed in accordance with the laws of the State of California and exclusive venue for any action involving this License will be in Los Angeles County. 22. PARTIAL INVALIDITY. Should any provision of this License be held by a court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of this License will remain in effect, unimpaired by the holding. 23. ENTIRE AGREEMENT. This instrument and its Attachments constitute the sole agreement between CITY and LICENSEE respecting Property, the use of Property by LICENSEE, and the specified License term, and correctly sets forth the obligations of CITY and LICENSEE. Any agreement or representations respecting Property or its licensing by CITY to LICENSEE not expressly set forth in this instrument are void. 24. CONSTRUCTION. The language of each part of this License will be construed simply and according to its fair meaning, and this License will never be construed either for or against either party. 25. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this License and to Page 5 of 7 engage in the actions described herein. This License may be modified by written agreement. CITY's city manager, or designee, may execute any such amendment on behalf of CITY. 26. COUNTERPARTS. This License may be executed in any number or counterparts, each of which will be an original, but all of which together will constitute one instrument executed on the same date. IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. CITY OF EL SEGUNDO Greg Carpenter, City Manager ATTEST: Taxpayer ID No. Tracy Weaver, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, City Attorney IC Karl H. Berger, Assistant City Attorney Page 6 of 7 Exhibit A Scope of Services LICENSEE agrees to provide the following services at CITY's George E. Gordon Clubhouse Drop -In Room: 1. Certified and /or trained staff to operate the El Segundo Cooperative Nursery School Programs. CITY agrees that LICENSEE may utilize the following annual schedule: September to June • Tuesdays /Wednesdays /Thursdays (8:30am — 12:30pm) • Parent Meetings on the 2 Tuesdays of every month (7:00 — 8:30pm) Page 7 of 7 EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to adopt a Resolution approving plans and Specifications for the Sewer Main Improvement. Project No. PW 13 -24 (Fiscal Impact: $800,000) RECOMMENDED COUNCIL ACTION: 1. Adopt a Resolution approving plans and specifications for the Sewer Main Improvement Project. 2. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: Resolution 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 Civil Engineer t , W'` 1 REVIEWED BY: Stephanie Katsouleas, Public Works 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. Based on the AST report's findings, staff implemented $1,052,044.08 worth of open trench and sewer lining projects at various locations throughout the Smokey Hollow area as well as on Maple Avenue last year. Please note that staff evaluates the condition of each priority segment of sewer mains each year 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. The trenchless portion of this year's sewer repairs started in March, 2014 and was successfully completed in May, 2014 for $186,515. Trenchless repair (lining) is and cost effective method for repairing deficiencies in pipes that are still structurally sound but have been compromised and leak. However, open trench repair is the only suitable method of repair for the more severely IQ• damaged sections of sewer pipes. The repairs are predominantly located in the western residential areas of El Segundo. (See attached Map of Project Area.) Staff has developed plan and specs for the open trench portion of the sewer repair for this year and recommends that City Council 1) adopt the attached resolution approving the plans and specifications for the Sewer Main Improvement (Project No. PW13 -24) and 2) authorize staff to advertise the project for receipt of construction bids. Staff estimates the following timeline for the project: September, 2014 Advertise the Project November, 2014 City Council Awards Project January, 2015 Start Construction May, 2015 Complete Project RESOLUTION NO. _ A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OF SEWER MAIN IMPROVEMENTS, PW13 -24. PURSUANT TO GOVERNMENT CODE § 830.6 AND ESTABLISHING A PROJECT PAYMENT ACCOUNT. The City Council of the City of El Segundo does resolve as follows: SECTION 1: The City Council finds and declares as follows: A. The City Engineer prepared plans and specifications for Sewer Main Improvements, Project NO. PW13 -24 (the "Project "). These plans and specifications are complete. Construction of the Project may begin; B, The City Council wishes to obtain the immunities set forth in Government Code § 830.6 with regard to the plans and construction of the Project. SECTION 2: Design Immunity; Authorization. A. The design and plans for the Project are determined to be consistent with the City's standards and are approved. B. The design approval set forth in this Resolution occurred before actual work on the Project construction commenced. C. The approval granted by this Resolution conforms with the City's General Plan. D. The City Engineer, or designee, is authorized to act on the City's behalf in approving any alterations or modifications of the design and plans approved by this Resolution. E. The approval and authorization granted by this Resolution is intended to avail the City of the immunities set forth in Government Code § 830.6. SECTION 3: Project Payment Account. For purposes of the Contract Documents administering the Project, the City Council directs the City Manager, or designee, to establish a fund containing sufficient monies from the current fiscal year budget to pay for the Project ( "Project Payment Account "). The Project Payment Account is the sole source of funds available for the Contract Sum, as defined in the Contract Document administering the Project. SECTION 4: The City Clerk is directed to certify the adoption of this Resolution. SECTION 5: This Resolution will become effective immediately upon adoption. PASSED AND ADOPTED this __ day of , 2014. Page 1 of 2 ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, City Attorney Suzanne Fuentes, Mayor Karl H. Berger, Assistant City Attorney Page 2 of 2 !�� �,k t �� i� ., ._} .1 } ?_ �i ,.. - l`�� �� � �� � ky � �f � �'l '� � ��'� �� � �, �._��� �� E- �� �� ,� ._ ,. ;,�,, L �'��. EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: Consideration and possible action to authorize License Agreement in a form approved by the Aquatics to operate a Masters Swim Program Revenues per year) RECOMMENDED COUNCIL ACTION: MEETING DATE: September 16, 2014 AGENDA HEADING: Consent Agenda the City Manager to execute a one year City Attorney with Southern California (Fiscal Impact: $6,600 in Reservation 1. Authorize the City Manager to execute an agreement with South California Aquatics in a form approved by the City Attorney 2. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Draft License Agreement and Scope of Services FISCAL IMPACT: $6,600 in Reservation Revenues per year Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): 001- 300 - 0000 -3879 (Reservation Fees) ORIGINATED BY: Jesse Bobbett, Acting Recreation Superintendent i;4 8 REVIEWED BY: Meredith Petit, Director of Recre tion and Parks APPROVED BY: Greg Carpenter, City Manager BACKGROUND AND DISCUSSION: The Department of Recreation and Parks has seen some recent turnover with coaches for the Masters Adult Swim Program held at The Plunge. With the upcoming departure of the current coach, Recreation Staff worked with participants to gain their feedback through a community meeting to discuss the direction of the program. The participants noted that they wanted to keep the format of the current program while securing consistent coaching and maintaining the same level of quality. Staff was subsequently contacted by Southern California Aquatics (SCAR), a non - profit swim program, to discuss a possible partnership in order to continue offering a local Masters Program at The Plunge. Southern California Aquatics is the largest Masters Swim Program in the United States. Established in 1979, SCAQ is an adult swimming club geared towards all levels of adult swimmer, from novice to Olympian, and currently offers over 50 weekly workouts in the Los I roles area. Aber, Southern California Aquatics submitted a proposal to implement a Masters Swim `1 Segundo. This proposal would meet the needs of current participants and would the consistent coaching and resources it needs for long term success. Staff ,g into a License Agreement for one year at the proposed rate of $550.00 per would bring in $6,600 of reservation revenue per year and would operate y, from 6:00 — 7:00 a.m. at The Plunge. These reduced reservation fees, per hour, would allow SCAQ to keep registration fees as low as .cs. Additional hours would be reserved at the rate of $50 per hour. A] LICENSE AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND SOUTHERN CALIFORNIA AQUATICS THIS LICENSE is made and executed this 17th day of September, 2014, between the CITY OF EL SEGUNDO, a municipal corporation ( "CITY "), and Southern California Aquatics, a California nonprofit corporation ( "LICENSEE "). 1. LICENSE; DESCRIPTION OF PROPERTY. CITY licenses LICENSEE to use, on the terms and conditions in this License, real property located at The Urho Saari Swim Stadium, 219 W. Mariposa Ave., El Segundo, CA ( "Property "). CITY's action is not, and should not be construed to be, a conveyance of a property interest or a lease; it is a license to use property only. 2. USE OF PROPERTY. A. LICENSEE may temporarily use the Property for the purposes of operated a competitive youth swim team program. B. CITY may change, amend, or terminate LICENSEE's use of Property at any time, and in its sole discretion, verbally or in writing. 3. TERM. Except as provided in Section 4, the term of this license will begin on October 1, 2014 and end on September 30, 2015. Upon mutual written agreement between the parties, this License may be renewed for additional time. 4. TERMINATION. A. As stated above, CITY may terminate this License at any time with or without cause, upon written or verbal notification. Termination will be effective upon notification, unless CITY specifies otherwise. B. LICENSEE may terminate this License at any time in writing at least five (5) days before the effective termination date. C. By executing this document, LICENSEE waives any and" all 'claims for damages that might otherwise arise from CITY's termination under this Section. D. Upon termination, LICENSEE will remove all personal property and improvements from Property within two (2) days. Property will be left in a clean and orderly fashion. 5. COMPENSATION. In exchange for the use of the facilities at Property, LICENSEE agrees to pay CITY a sum of Five Hundred Fifty Dollars ($550) per month ($25 per hour x 22 hours) and Fifty Dollars ($50) per additional hours for the term of this License. Page 1 of 7 6. CONDEMNATION. If all or part of Property is acquired by eminent domain or purchase in lieu thereof, LICENSEE acknowledges that it will have no claim to any compensation awarded for the taking of Property or any portion thereof or for loss of or damage to LICENSEE's improvements. 7. RELOCATION BENEFITS. LICENSEE acknowledges that it has been informed that CITY is a public entity and that Property was previously acquired by CITY for a public purpose. LICENSEE further acknowledges that any rights acquired under this License arose after the date of acquisition of Property and that said rights are subject to termination when Property is needed by CITY. LICENSEE hereby acknowledges that at the time of said termination of this License by CITY, it will not be a "displaced person" entitled to any of the relocation assistance or benefits offered to displaced persons under State or Federal law. 8. ALTERATIONS. LICENSEE will not make, or cause to be made, any alterations to Property, or any part thereof, without CITY's prior written consent. 9. HAZARDOUS/TOXIC WASTE. CITY has not, nor, to CITY's knowledge, has any third party used, generated, stored or disposed of, or permitted the use, generation, storage or disposal of, any Hazardous Material (as defined below) on, under, about or within Property in violation of any law or regulation. LICENSEE agrees that it will not use, generate, store or dispose of any Hazardous Material (as defined below) on, under, about or within Property in violation of any law or regulation. LICENSEE agrees to defend and indemnify CITY, to the extent stated in Section 12, against any and all losses, liabilities, claims or costs arising from any breach of any warranty or agreement contained in this Section. As used in this Section, "Hazardous Material" means any substance, chemical or waste that is identified as hazardous, toxic or dangerous in any applicable federal, state or local law or regulation (including petroleum and asbestos). 10. SIGNS. LICENSEE will not place any sign upon Property without CITY's prior written consent. LICENSEE will pay for all costs of any approved signage and comply with all applicable sign codes and ordinances. 11. ASSIGNMENT. LICENSEE will not be permitted to assign this License or any interest therein. 12. INDEMNIFICATION. A. LICENSEE will hold CITY harmless and free from any and all liability arising out of this License, or its performance, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be against it, by suit or otherwise, whether the same be groundless or not, arising out of this License, or its performance, pursuant to this License, LICENSEE will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify it for any judgment rendered against it or any sums paid out in settlement or Page 2 of 7 otherwise. B. For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers. C. LICENSEE expressly agrees that this release, waiver, and indemnity agreement is intended to be as broad and inclusive as is permitted by the law of the State of California and that if any portion is held invalid, it is agreed that the balance will, notwithstanding, continue in full legal force and effect. D. It is expressly understood and agreed that the foregoing provisions will survive termination of this License. E. The requirements as to the types and limits of insurance coverage to be maintained by LICENSEE as required by Section 13 below, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by LICENSEE pursuant to this License, including but not limited to the provisions concerning indemnification. 13. INSURANCE. A. Before commencing performance under this License, and at all other times this License is effective, LICENSEE will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Type of Insurance Commercial general liability: Business automobile liability: Workers compensation Limits (combined single) $2,000,000 $1,000,000 Statutory limits B. Commercial general liability insurance will meet or exceed the requirements of the most current ISO Forms. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies must be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable except upon thirty (30) days prior written notice to CITY except for nonpayment of premiums which may be cancelable upon ten (10) day notice. C. LICENSEE will furnish to CITY duly authenticated Certificates of Insurance and Page 3 of 7 Endorsements evidencing maintenance of the insurance required under this License and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." Certificate(s) must reflect that the insurer will provide thirty (30) day notice of any cancellation of coverage. CONTRACTOR will require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions. D. Should LICENSEE, for any reason, fail to obtain and maintain the insurance required by this License, CITY may obtain such coverage at LICENSEE's expense and charge the cost of such insurance to LICENSEE under this License or terminate pursuant to Section 4. 14. COMPLIANCE WITH LAW. LICENSEE will, at its sole cost and expense, comply with all of the requirements of all federal, state, and local authorities now in force, or which may hereafter be in force, pertaining to Property and will faithfully observe in the use of Property all applicable laws. The judgment of any court of competent jurisdiction, or the admission of LICENSEE in any action or proceeding against LICENSEE, whether CITY be a party thereto or not, that LICENSEE has violated any such ordinance or statute in the use of Property will be conclusive of that fact as between CITY and LICENSEE. 15. BREACH OF AGREEMENT. The violation of any of the provisions of this License will constitute a breach of this License by LICENSEE, and in such event said License will automatically cease and terminate. 16. WAIVER OF BREACH. Any express or implied waiver of a breach of any term of this License will not constitute a waiver of any further breach of the same or other term of this License. 17. ENTRY BY CITY AND PUBLIC. This License does not convey any property interest to LICENSEE. Except for areas restricted because of safety concerns, CITY and the general public will have unrestricted access upon Property for all lawful acts. 18. INSOLVENCY; RECEIVER. Either the appointment of a receiver to take possession of all or substantially all of the assets of LICENSEE, or a general assignment by the LICENSEE for the benefit of creditors, or any action taken or offered by LICENSEE under any insolvency or bankruptcy action, will constitute a breach of this License by LICENSEE, and in such event said License will automatically cease and terminate. 19. NOTICES. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this License or by law to be served on or given to either party to this License by the other party will be in writing and will be deemed served when personally delivered to the party to whom they are directed, or in lieu of the personal service, Page 4 of 7 upon deposit in the United States Mail, certified or registered mail, return receipt requested, postage prepaid, addressed to LICENSEE at: Southern California Aquatics 3646 Barry Ave, Los Angeles, CA 90066 or to CITY at: Department of Recreation & Parks 350 Main Street El Segundo, CA 90245 Either party may change its address for the purpose of this Section by giving written notice of the change to the other party. 20. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that agreements ancillary to this License and related documents to be entered into in connection with this License will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 21. GOVERNING LAW. This License has been made in and will be construed in accordance with the laws of the State of California and exclusive venue for any action involving this License will be in Los Angeles County. 22. PARTIAL INVALIDITY. Should any provision of this License be held by a court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of this License will remain in effect, unimpaired by the holding. 23. ENTIRE AGREEMENT. This instrument and its Attachments constitute the sole agreement between CITY and LICENSEE respecting Property, the use of Property by LICENSEE, and the specified License term, and correctly sets forth the obligations of CITY and LICENSEE. Any agreement or representations respecting Property or its licensing by CITY to LICENSEE not expressly set forth in this instrument are void. 24. CONSTRUCTION. The language of each part of this License will be construed simply and according to its fair meaning, and this License will never be construed either for or against either party. 25. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this License and to engage in the actions described herein. This License may be modified by written agreement. CITY's city manager, or designee, may execute any such amendment on behalf of CITY. Page 5 of 7 26. COUNTERPARTS. This License may be executed in any number or counterparts, each of which will be an original, but all of which together will constitute one instrument executed on the same date. IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. CITY OF EL SEGUNDO Greg Carpenter, City Manager ATTEST: Taxpayer ID No. Tracy Weaver, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, City Attorney Karl H. Berger, Assistant City Attorney Page 6of7 Exhibit A Scope of Services LICENSEE agrees to provide the following services at CITY's Urho Saari Plunge: 1. Certified and Trained Coaching for all levels and abilities of swimmer; 2. City of El Segundo will provide one (1) Lifeguard and one (1) Senior Guard. CITY agrees that LICENSEE may utilize the facility on Mondays through Fridays from 6:00 am- 7:00 am. Page 7 of 7 EL SEGUNDO CITY COUNCIL MEETING DATE: August 5, 2014 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding the adoption of a Conflict of Interest Code required by The Political Reform Act (Government Code Section 81000 et. seq.) rescinding Resolution No. 4778, and adopting a new resolution approving a new Conflict of Interest Code. (Fiscal Impact: None) RECOMMENDED COUNCIL ACTION: 1. Adopt resolution; 2. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: Draft Resolution FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Cathy Domann, Deputy City Clerk II REVIEWED BY: Tracy Weaver, City Clerk APPROVED BY: Greg Carpenter, City Manager BACKGROUND AND DISCUSSION: The California Government Code requires that no later than July of each even numbered year, the City Council shall direct the City Clerk to review and recommend changes to the City's Conflict of Interest Code to be adopted no later than October 1, 2014. The City's Code lists certain "designated employees" that make or participate in the making of decisions which may foreseeably have a material effect on economic interests. The City's Code supplements state law (which already requires certain City officials to file conflict of interest disclosure statements) and its requirements are in addition to other requirements of the Political Reform Act ( "PRA "), such as a general prohibition against conflicts of interest. Since the update of the Code in 2012, the City Clerk's office has reviewed the current Code and is recommending the following changes resulting from the addition or deletion of designated positions pursuant to Government Code Section 87302. The addition of the new class specification of RSI Design Coordinator, the elimination of the Deputy Fire Chief class specification, and the re- titled class specifications of Deputy City Clerk II (formerly Deputy City Clerk) and Deputy City Treasurer II (formerly Deputy City Treasurer). The class specifications of Fire Marshal, and Environmental Safety Manager were inadvertently left off the last code iulbl update. It has also been determined that the position of License Permit Specialist should be added and the position of Planning Technician should be deleted. Additionally, the City Manager, in consultation with the City Attorney, is recommending that members of certain advisory committees, such as the Economic Development Advisory Council and the Community Cable Advisory Committee, be removed from the list of designated employees. As a code reviewing body, the City may exempt certain bodies from its conflict of interest code, provided that the body does not make final governmental decisions, compel or prevent governmental decisions, or make substantive recommendations that are, and over an extended period of time have been, regularly approved without significant amendment or modification by the City Council (FPPC Regs. § 1870 1 (a)(1)(A)). With regard to the Economic Development Advisory Council and the Community Cable Advisory Committee, these committees are solely advisory committees and do not possess decisionmaking authority as defined by the Fair Political Practices Commission. Indeed, a review of these committees' by -laws and reports to the City Council confirm that they are exclusively advisory committees. Accordingly, the City Manager has determined that they are exempt from the disclosure regulations of the PRA. This exemption shall remain in effect until the basis for the grant of exemption no longer exists or the expiration of two years, whichever occurs earlier. RESOLUTION NO. A RESOLUTION ADOPTING THE 2014 CONFLICT OF INTEREST CODE FOR THE CITY OF EL SEGUNDO IN ACCORD WITH THE POLITICAL REFORM ACT. The City Council of the City of El Segundo does resolve as follows: SECTION 1: The City Council finds and declares as follows: A. The Political Reform Act ( "PRA "; Gov't. Code §§ 81000, et seq.) and regulations adopted by the Fair Political Practices Commission pursuant to the PRA ( "FPPC Regs. "; 2 Cal. Code of Regs. §§ 18700, et seq.) require local government to adopt conflict of interest codes. B. Section 18730 of the FPPC Regs. sets forth a standard conflict of interest code that may be adopted by local agencies. C. On or about July 1, 2014, the City Clerk's Office conducted a review of the City's conflict of interest code in accord with Government Code § 87306.5 and determined that changes to the code were needed at that time. D. To fulfill its obligations under the PRA and FPPC Regs., the City Council will repeal Resolution No. 4778, adopted July 17, 2012, and adopt a new conflict of interest code as set forth below. SECTION 2: Pursuant to FPPC Regs. § 18730, the City of El Segundo adopts a Conflict of Interest Code to read as follows: "CONFLICT OF INTEREST CODE FOR THE CITY OF EL SEGUNDO A. Incorporation of Standard Code. Under the terms of the Political Reform Act (Gov't Code §§ 81000 et seq.) and regulations promulgated by the Fair Political Practices Commission (2 Cal. Code of Regs. §§ 18700, et seq.), the City is required to adopt a conflict of interest code. The City of El Segundo incorporates by reference 2 Cal. Code of Regs. § 18730, and its amendments, into this Conflict of Interest Code including, without limitation, the designation of officials and employees and the disclosure categories set forth below (collectively, "the Conflict of Interest Code "). B. Filing of Statements Designated officials, officers and employees must file Statements of Economic Interest (Form 700) with the City Clerk or Deputy City Clerk. After receiving Statements of Economic Interests from City Council members, the City Treasurer, Planning Page 1 of 6 Commission members, City Attorney, and City Manager, the City Clerk or Deputy City Clerk, must forward the original to the Fair Political Practices Commission and retain a copy for the City's files. Under Government Code § 82011(c), the City Council is the code reviewing body with respect to the Conflict of Interest Code. C. Review Procedure Under Government Code § 87306.5, not later than July 1 of each even numbered year, the City Council must direct the City Clerk, or Deputy City Clerk, to review the Conflict of Interest Code. The City Clerk or Deputy City Clerk must submit an amended Conflict of Interest Code to the City Council if a change in the Conflict of Interest Code is necessitated by changed circumstance. If changes are not required, the City Clerk or Deputy City Clerk must submit a written statement to that effect to the City Council not later than October I of the same year. D. Designated Positions The following positions entail the making or participation in the making of decisions that may have a foreseeable material effect on the officials or officer's financial interests. COUNCIL, COMMISSIONS, COMMITTEES, & BOARDS Members of the City Council Members of the Planning Commission Members of the Aviation Safety and Noise Abatement Committee Members of the Capital Improvement Program Advisory Committee Men+ber-s e f the Ge :tom, Cable Adviser-5- r e- - -- Members of the Disaster Committee Members of the Environmental Committee Members of the Investment Advisory Committee Members of the Library Board of Trustees Members of the Recreation & Parks Commission Members of the Senior Housing Board OFFICE OF THE CITY MANAGER: City Manager Assistant City Manager infefffia4ion Systems Ma-Rage (reassigned to Police Department) OFFICE OF THE CITY ATTORNEY: City Attorney Page 2 of 6 Assistant City Attorney OFFICE OF THE CITY CLERK: City Clerk Deputy City Clerk II (re- titled position) OFFICE OF THE CITY TREASURER: City Treasurer Deputy City Treasurer II (re- titled position) FINANCE DEPARTMENT: Director of Finance Fiscal Services Manager Accounting Manager Business Services Manager Purchasing Agent FIRE DEPARTMENT Fire Chief Pepu4y Fire Chien (deleted position) Fire Marshal (added position) Environment Safety Manager (added position) Battalion Chief(s) HUMAN RESOURCES DEPARTMENT Director of Human Resources Human Resources Manager LIBRARY DEPARTMENT: Director of Library Services Librarian Senior Librarian(s) PLANNING & BUILDING SAFETY DEPARTMENT: Director of Planning & Building Safety Planning Manager Building Safety Manager Residential Sound Insulation Manager Assistant Planner Page 3 of 6 Associate Planner Building Inspector(s) Construction Coordinator(s) Economic Development Analyst Plan Check Engineer Plaf g T.,eh (deleted position) Principal Planner Property Owner Coordinator RSI Design Coordinator (added position) License Permit Specialist (added position) Senior Building Inspector(s) Senior Plan Check Engineer POLICE DEPARTMENT Police Chief Police Captain(s) Information Systems Manager (reassigned Information Systems to Police Department from Office of the City Manager) PUBLIC WORKS DEPARTMENT Director of Public Works Assistant City Engineer Principal Engineer General Services Manager Streets Supervisor Water Supervisor Wastewater Supervisor RECREATION AND PARKS DEPARTMENT Director of Recreation and Parks Parks Superintendent Recreation Superintendent * Listed in the code for information purposes only. These positions file under Government Code Section 87200 with the Fair Political Practices Commission. CONSULTANTS: All consultants except those included by the City Manager in accordance with the following procedure: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that Page 4 of 6 requires the consultant to fully comply with the disclosure requirements described in this section. Such written determination must include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager determination is a public record and must be retained for public inspection in the same manner and location as this conflict of interest code. E. Disclosure Requirements Designated employees must disclose all interests as required by the Political Reform Act and regulations promulgated thereto. When a new position classification is created by the Human Resources Department for City Council approval, the Human Resources Department will recommend that the City Council decide whether the new position will be required to file a Statement of Economic Interest and be included as a designated position in the Conflict of Interest Code. When the City Council establishes a Commission, Committee, or Board, the City Council will decide whether the members of the Commission, Committee or Boards be included as a designated position in the Conflict of Interest Code and the members of the Commission, Committee or Board so designated by the City Council, will be required to file a Statement of Economic Interest." SECTION 3: By adoption of this Resolution, the City Council also hereby ratifies the decision of the City Manager, finding that the Economic Development Advisory Council and the Community Cable Advisory Committee are solely advisory committees and therefore exempt from the disclosure regulations of the Political Reform Act. This exemption shall remain in effect until the basis for the grant of exemption no longer exists or the expiration of two years, whichever occurs earlier. Within 30 days after the adoption of this Resolution, any interested party may submit a request that the grant of exemption be reconsidered by the City Council. The Mayor shall consider the request and, if in her discretion good cause exists for reconsideration, she shall schedule the matter for hearing before the City Council. SECTION 4: Resolution No. 4778 (adopted July 17, 2012) and any other resolution or policy purporting to establish a conflict of interest code, are superseded by this Resolution and thus repealed in their entirety. SECTION 5: Repeal of any provision of any resolution or policy herein will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution. SECTION 6: The City Clerk will certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. SECTION 7: This Resolution will become effective immediately upon adoption. Page 5 of 6 PASSED AND ADOPTED this day of September, 2014. ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney Karl H. Berger, Assistant City Attorney Page 6 of 6 Suzanne Fuentes, Mayor EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding authorization for the City Manager to execute two (2) one -year agreements in a form approved by the City Attorney with four one -year term extensions, for a maximum total contract length of five years each for RFP No. 414 -07 (On -Call Citywide Low Voltage Wiring Services) (Fiscal Impact: None) RECOMMENDED COUNCIL ACTION: 1. Authorize the City Manager to execute an agreement in a form approved by the City Attorney with Federal Technology Solutions, Inc. and NIC Partners, Inc. 2. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: Attachment A: Bid Log Sheet Attachment B: Contractor Responses FISCAL IMPACT: Included in Adopted Budget Amount Budgeted: N/A Additional Appropriation: No Account Number(s): N/A ORIGINATED BY: Larry Klingaman, Information Syst s Manage REVIEWED BY: Mitch Tavera, Chief of Police S APPROVED BY: Greg Carpenter, City Manager l BACKGROUND AND DISCUSSION: Over time, new devices need to be connected to the City network by running low voltage wiring. Some examples of these devices are Computers, Presentation Monitors, Wireless Access Points, and IP Cameras. Staff does not have the expertise to install the necessary wiring at City Facilities. Historically, staff has obtained individual contracts with wiring contractors for specific installations and repairs at City facilities. This process can take considerable time and causes unnecessary delays. Staff decided to create a pool of contractors to perform on call routine installation and maintenance. On July 17 and July 24, staff advertised for bids to provide on call citywide low voltage wiring services. The request for proposal included three sample projects similar to installations that 1 1 frequently occur at City facilities. Bidders were required to complete a proposal sheet for the sample projects, including their labor rates and material markups. On August 12, the City Clerk received and opened three (3) bids as follows: Staff reviewed the proposals and performed reference checks. During the review, staff determined the markup rate in the proposal from Telenet of 40% to be excessive. Staff recommends that City Council authorize the City Manager to execute an agreement in a form approved by the City Attorney with Federal Technology Solutions, Inc and NIC Partners, Inc. FEDERAL NIC TELENET Average Rate $ 70.00 $ 88.83 $ 85.00 Technician Rate $ 70.00 $ 68.85 $ 85.00 Project Manager Rate $118.80 Material Markup Rate 15% 20% 40% Staff reviewed the proposals and performed reference checks. During the review, staff determined the markup rate in the proposal from Telenet of 40% to be excessive. Staff recommends that City Council authorize the City Manager to execute an agreement in a form approved by the City Attorney with Federal Technology Solutions, Inc and NIC Partners, Inc. CITY OF EL SEGUNDO BIDIRFP LOG BID NO. #14 -07 City of El Segundo On Call Citywide Low Voltage Wiring Services Date of BID Opening: Tuesday, August 12, 2014 Time of BID Opening: 11 A.M. Place of BID Opening: City Clerk's Office COMPANY NAMEIADDRESS Pro ect 1 Project 2 Project 3 2. Telenet VOIP, Inc. 850 Parkview Drive North El Segundo, CA 90245 I,oSIR /1013 ?� -71939 $ 1100�21 g2 �$16� a 13t2 � 6 � 2 S7 s-� Sd 2,07 " $10 � 7 _. 3. Federal Technology Solutions Inc. 1530 Consumer Circle, Unit 102 Corona, CA 92887 � $�$ FSg 4. 5. - - 6_ 7. 8. 9. 10. Staff Present: FORMS16 MOPEN1 City Clerk's Office City Clerk's Office RSI, Representative Company Name: Federal Technology Solutions, Inc. PROJECT# LABOR HOURS LABOR RATE LABOR TOTAL MATERIALS 1 4 CA 9.75% TAX TOTAL PRICE Instructions 48.88 -- 6,287.88 1: Estimate the labor hours and then enter into the labor hours cell. 2: Enter your labor rate in the Labor Rate Cell. 3: Multiply the labor hours cell by the labor rate cell and enter the value into the Labor Total Cell. 4: Create and attach a material worksheet showing individual item quantlties and costs. 5: Enter the sum of material costs from your worksheet into the Materials Cell. 6, Calculate tax as 9.75% of the value in the materials cell and enter the value in the CA 9.75% TAX cell. _Add the Labor 7atal, n�iate_} Is, and CA Tax together and place in the Total Price Cell. 10.47 _ ADDITIONAL AWARD CRITERIA What percentage of mark -up, above cost, is charged for materials? How many hours will it take for your company to respond on -site for: Evaluation of jobsite for quote: 8 Hours Scheduled work: 4 Hours I-C -8 15 % _ '70.00 245.00 23.88 15.25 70.00 3,727.50 - 2,332.92 '227.46 O.00 80.00 14.00 [1.47- Instructions 48.88 -- 6,287.88 1: Estimate the labor hours and then enter into the labor hours cell. 2: Enter your labor rate in the Labor Rate Cell. 3: Multiply the labor hours cell by the labor rate cell and enter the value into the Labor Total Cell. 4: Create and attach a material worksheet showing individual item quantlties and costs. 5: Enter the sum of material costs from your worksheet into the Materials Cell. 6, Calculate tax as 9.75% of the value in the materials cell and enter the value in the CA 9.75% TAX cell. _Add the Labor 7atal, n�iate_} Is, and CA Tax together and place in the Total Price Cell. 10.47 _ ADDITIONAL AWARD CRITERIA What percentage of mark -up, above cost, is charged for materials? How many hours will it take for your company to respond on -site for: Evaluation of jobsite for quote: 8 Hours Scheduled work: 4 Hours I-C -8 15 % _ Company Name: Network Integration Company Partners Inc dba NIC Partners. Inc. _ PROJECT P`RIC_ING UBMI PROJECT# L.AROR NMIRS i APIAR RATE 1,ARf1R -rn-rm MArCOIAI C PA n tirai TA V TATS.`'..... - ADDITIONAL AWARD CRITERIA What percentage of mark -up, above cost, is charged for materials? 20% How many hours will it take for your company to respond on -site for: Evaluation of jobsite for quote: 48 Hours Scheduled work: 72 Hours I -C-8 8,405 (Cable Tech) 588.86 (Cable Tee 1 1.00 (PM) $118.80 (PM) $697.48 $327.37 $31.92 $1,056.77 2 23.25 (Cable Tech) 5.00 (PM) $0.85 (Cable Tech 5118.80 (PM) $2,194.76 $5,234.26 $510.34 $7,939.36 4.4 (Cable Tech) 88.85 (Cable Tech 3 0.75 (PM) 5118.80 (PM) $392.04 $557.84 $54.39 $1,004.27 Instructions 1: Estimate the labor hours and then enter Into the labor hours cell. 2: Enter your labor rate in the Labor Rate Cell. 3: Multiply the labor hours cell by the labor rate cell and enter the value into the Labor Total Cell. 4: Create and attach a material worksheet showing individual item quantities and costs. 5: Enter the sum of material costs from your worksheet into the Materials Cell. 6: Calculate tax as 9.75% of the value in the materials cell and enter the value in the CA 9.75% TAX cell. 7: Add the Labor Total, Materials, and CA Tax together and lace in the Total Price Cell. ADDITIONAL AWARD CRITERIA What percentage of mark -up, above cost, is charged for materials? 20% How many hours will it take for your company to respond on -site for: Evaluation of jobsite for quote: 48 Hours Scheduled work: 72 Hours I -C-8 Company Name: TELENET VOID, INC. TAX TOTAL PRICE 1 5 Hrs. $85.00 $425.00 $536.00 $52.26 2 63 Hrs. $85.00 1 $5,365.00 $9,712.00 $946.92 - 3 16 Hrs. $85.00 $1,360.00 $1,000,00 $97.50 Instruetlans 1: Estimate the labor hours and then enter into the labor hours cell. 2: Enter your labor rate in the Labor Rate Cell. 3: Multiply the labor hours cell by the labor rate cell and enter the value into the Labor Total Cell. 4: Create and attach a material worksheet showing individual item quantities and costs. 5: Enter the sum of material costs from your worksheet into the Materials Cell. 6: Calculate tax as 9.75% of the value in the materials cell and enter the value in the CA 9.75% TAX cell. 7: Add the Labor Totai, Materials, and CA Tax together and place in the Total Price Cell. $1,013.26 $16,013.92 $2,457.50 ADDITIONAL AWARD CRITERIA What percentage of mark -up, above cost, is charged for materials? 40% How many hours will it take for your company to respond on -site for: Evaluation of jobsite for quote: 48 Hrs. Scheduled work: 5 Days l-C -8 EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to receive and file this report regarding cleaning and repairing drywall and carpet as well as restoring furniture in the north portion of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code (`SSMC ")§ 1 -7 -12 and 1 -7A -4. (Fiscal Impact: $37,000.00) RECOMMENDED COUNCIL ACTION: (1) Receive and file this report regarding cleaning and repairing drywall and carpet as well as restoring furniture in the north portion of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code (`SSMC ")§ 1 -7 -12 and 1 -7A -4; and /;or. (2) Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: Included in Adopted Budget Amount Budgeted: $37,000 Additional Appropriation: No. Account Number(s): 405- 400 - 0000 -6215 (Facilities Maintenance Fund — Repair & Maintenance Acct.) ORIGINATED BY: Stephanie Katsouleas, Director of Public Works REVIEWED BY: Stephanie Katsouleas, Director of Public Works APPROVED BY: Greg Carpenter, City Manager BACKGROUND AND DISCUSSION: On August 5, 2014 City Council approved an emergency contract with A & V Contractors, Inc. (A & V) to clean and repair drywall and carpet as well as restore furniture in the north portion of City Hall (Human Resources, City Clerk's office, server room). As you may recall, damage to these areas was due to an improperly sealed drain and corresponding rain event which occurred during the City Hall roofing project. Contract documents are being processed by City staff. Public Contracts Code § 22050(c) requires that the City Council receive updates at every regularly scheduled meeting until the emergency repair is completed. Therefore, staff also recommends that City Council receive and file this report on the status of the emergency repair to clean and repair drywall and carpet and restore furniture in the north portion of City Hall. 12 EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to receive and file this report regarding the emergency repair to remove debris in the attic space of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC ")§ 1 -7 -12 and 1 -7A -4. (Fiscal Impact: $82,354.00) RECOMMENDED COUNCIL ACTION: (1) Receive and file this report regarding the emergency repair to remove debris in the attic space of City Hall without the need for bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC ")§ 1 -7 -12 and 1 -7A -4. (2) Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: None FISCAL IMPACT: Included in Adopted Budget Amount Budgeted: $82,354.00 Additional Appropriation: No Account Number(s): 405- 400 - 0000 -6215 (Facilities Maintenance: Repairs and Maintenance) ORIGINATED BY: Stephanie Katsouleas, Director of Public Works h REVIEWED BY: Stephanie Katsouleas, Director of Public Works APPROVED BY: Greg Carpenter, City Manager aA BACKGROUND AND DISCUSSION: On May 6, 2014 City Council approved a contract to complete the attic cleaning emergency repair with Empire Building. Contract and insurance documents were finalized on June 9th and they will work only on Friday through Sunday until the project is complete. Work began on July 18 and is complete for the majority of offices. Work is continuing on the weekends for the Business License Area, the hallways, and any missed areas. Public Contracts Code § 22050 (c) requires that the City Council receive updates at every regularly scheduled meeting until the emergency repair is completed. Therefore, staff recommends that City Council receive and file this report on the status of the emergency repair to clean the attic space in City Hall. 13 EL SEGUNDO CITY COUNCIL MEETING DATE: August 19, 2014 AGENDA STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Consideration and possible action to tentatively approve installation of a Class II bike lane on Rosecrans Ave. between Sepulveda Blvd. and Highland Ave . (Fiscal Impact: Undetermined but expected to be minimal staff time) RECOMMENDED COUNCIL ACTION: Tentatively approve the installation of a Class II bike lane on Rosecrans Ave. between Sepulveda Blvd. and Highland Ave. 2. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: Map FISCAL IMPACT: Undetermined Amount Budgeted: $0 Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Stephanie Katsouleas, .Public Works Director REVIEWED BY: Stephanie Katsouleas, Public Works Director APPROVED BY: Greg Carpenter, City Manager BACKGROUND AND DISCUSSION: On September 21, 2010, City Council adopted a resolution authorizing City staff to participate in the South Bay Regional Bicycle Master Plan planning with the South Bay Bicycle Coalition. The goal of the plan was to create a master plan that would regionally connect South Bay cities through a bicycle network and to encourage the allocation of transportation and grant funds to pedestrian and bicycle networks as they became available. The Bicycle Master Plan was completed in summer 2011 and was subsequently accepted/approved by Metropolitan Transportation Authority (Metro) on September 19, 2011. The Bicycle Master Plan identifies streets throughout El Segundo that are desirable for installation of bicycle routes, ranging from Class I dedicated routes down to shared road routes. Several of those routes (Douglas St., Nash St. and Aviation Blvd) are undergoing draft designs for Council consideration later this fall. Rosecrans Ave., over its full length, is also listed in the Bicycle Master Plan. For the segment of Rosecrans Ave. between Village Dr. and Sepulveda Blvd., The Pointe development will be installing a westbound, Class I, dedicated bikeway. Staff is proposing to continue the westbound bike lane segment with a Class II installation to Highland Ave. through a partnership with Chevron and Manhattan Beach. This extended bikeway will provide a safe path of travel for South Bay residents patronizing The Pointe development as well as for those who commute via bikes along Rosecrans Blvd. It will also compliment the 14 eastbound segment being installed by Manhattan Beach. The Proposed Bike Way In January, 2014, the Manhattan Beach City Council approved a motion to install a Class II bike lane on the eastbound side of Rosecrans Ave from Highland Ave. to Sepulveda Blvd. They also discussed whether El Segundo would consider installing a corresponding west -bound bike lane to complete this segment of the Bicycle Master Plan, which if approved by the El Segundo City Council, would be paid for by the City of Manhattan Beach. As conceived, installation on the westbound side of Rosecrans Ave. requires 1) an eight (8) foot easement from Chevron for the first 150ft west of Sepulveda Blvd. and 2) conversion of the #3 lane from a traffic lane to a dedicated Class II bike lane between Oak St. and Alma Ave. Sepulveda Blvd. to Oak St. Because the first 150 ft of Rosecrans Ave. just west of Sepulveda has only two lanes, additional land is needed to complete the bike route segment between Sepulveda Blvd. and Oak St. (see attached map). After review of the proposed configuration, Chevron has confirmed that it is open to providing an 8ft x 150ft area of land adjacent to the sidewalk on westbound Rosecrans Ave. through an easement agreement with the City of El Segundo if appropriate indemnification language can be agreed upon. Land surveying and construction costs would be covered by the City of Manhattan Beach and coordinated with Chevron. The "behind the curb" dedicated bike lane would extend to just past the existing bus stop and then segway into the 3rd lane at Oak St. Oak St. to Alma Ave. Based on the City's most recent Speed Survey and associated traffic counts, staff has determined that there would be no significant Level of Service (LOS) reduction on Rosecrans Ave. by converting one of the three westbound lanes to a dedicated bike lane between Oak St. and Alma Ave. Even with only two westbound traffic lanes, the street retains its classification as an "A" LOS (the most desirable classification) based on existing traffic volumes (15,900 vehicles per day, with a peak hourly rate of 953 for all three lanes). For this roadway segment, an "A" LOS is designated when each lane does not exceed 600 vehicles per hour, or 1200 vehicles for two lanes. Lastly, the turn movement for the large trucks entering Chevron is actually improved by the elimination of the #3 curbside lane. Prior to moving forward with expenditure of resources for implementation, including land surveying and drafting appropriate easement language, staff requests that City Council: 1) confirm its support of this project to convert the westbound #3 lane from a traffic lane to a dedicated Class II bike lane on Rosecrans Ave. between Oak St. and Bell Ave. and 2) direct staff to undertake the steps necessary for implementation. a' Wide Public Access Easement. Wide Landscape Reconstruct Curb Ramp for Peds and Bikes. Construct 6' Wide PCC ased Class II Class I Bike Path. Lane. Relocate fence. " r construct PCC r Curb Ramp. i- i ............... ° o ._. -------------- oC -/ a Rosecrans Avenue West of Sepulveda Boulevard Bike Lane Concept Sketch — Alternative 2 EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: September 16, 2014 AGENDA HEADING: New Business Consideration and possible action to review the water and sewer rate studies, direct staff to commence the Proposition 218 protest procedures regarding potential increases to the City's water and sewer rates for FY 2014/15- 2018/19 and set a public hearing to consider an ordinance increasing water and sewer rates and fees . (Fiscal Impact: $60,000 for ballot preparation and mailing for water rate increases and sewer rate increases.) RECOMMENDED COUNCIL ACTION: 1. Receive water rate study presentation and proposed potable water rate increases. 2. Direct staff to implement the Proposition 218 protest ballot procedures for proposed potable water and sewer rate increases. 3. Adopt a resolution establishing procedures for mailing, handling and counting Proposition 218 ballots. 4. Set a Public Hearing on November 18, 2014 for Council consideration of the proposed water and sewer rate increases. 5. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: Water Rate Study Report Sewer Rate Study Report Proposed Resolution regarding Proposition 218 procedures Draft Notice to Parcel Owners of a Proposed Rate Increase and Notice of a Public Hearing set for November 18, 2009 at 7:00 p.m. Sample Ballots FISCAL IMPACT: Included in Adopted Budget Amount Budgeted: $60,000.00 Additional Appropriation: N/A Account Number(s): To Be Assigned ORIGINATED BY: Lifan Xu, Principal Civil Engineer REVIEWED BY: Stephanie Katsouleas, Public Wor -s Director APPROVED BY: Greg Carpenter, City Manager JIL BACKGROUND AND DISCUSSION: The City of El Segundo owns and operates its own water and wastewater divisions. These operations are set up as separate enterprise funds, which are distinctly separate (financially) from the City's general fund. As an enterprise, each division is responsible for covering its own expenses and likewise generates its own income, making each self- sustaining. However, California's Proposition 218 governs how municipalities can raise water and sewer rates to cover the expenses associated with operating each enterprise. Under Prop 218, the rates can be established for up to five years. Thereafter, a new Prop 218 process would be required again. (see additional explanation about Prop 218 below) The last time the City initiated a Prop 218 protest ballot process for sewer rates was in 2006 and for water rates was in 2009. The ability to raise water and sewer rates any further has now expired. Thus, in order to establish new water and sewer rates for the next five years, the City must now conduct a new Proposition 218 protest ballot process. Water Department Expenses The City of El Segundo imports 100% of its potable water, which is ultimately supplied by the Metropolitan Water District (MWD). El Segundo purchases its water through the West Basin Municipal Water District (WBMWD, a wholesaler) and supplies that water to residents through its own distribution network. In January, 2010, when the last round of rates became effective, the cost of imported water was $861 per acre -ft, or $1.98 per unit.' That rate is now $1171 per acre -ft and expected to be as high as $1355 per acre -ft within five years. The total expenses related to operating a municipal water department can be broken down into three basic categories, which have certain associated costs. These include: • Potable water (purchase of the actual commodity) • Operations (staff salaries /benefits, utilities, maintenance, supplies, insurance /claims,) • Capital Program (infrastructure improvements and replacements) The total past, current and expected future costs to operate the City's Water Department are summarized below. These rates will vary somewhat from year to year based on: 1) how much funding is dedicated to the annual Capital program, 2) variations in operations expenses and 3) expected increases in the cost of purchasing potable water. Expense Category Potable Water 2009 $1.98 2014 $2.69 2018 • $3.11 Operations $0.72 $0.68 $0.77 CIP $0.14 $0.37 $0.74 Total Cost $2.84 $3.74 $4.62 Less Capacity Charge - $0.37* -$0.47 -$0.57 Total Adjusted Cost $2.47 $3.27 $_4.05 Rate Range $1.46 — $2.86 $2.04 — $4.15 $2.82 - $5.90 SFR $3.33 — $4.65 non SFR Residents see two rates on their water bills, which include: 1) a readiness to serve charge (also known as a capacity charge) which is based on the size of the customer's meter, and 2) consumption charge, i.e., the actual cost of potable water used by that customer. The readiness to serve charge is a fixed monthly charge which does not vary with consumption. However, it does increase annually with water rate increases. The consumption charge is currently spread over 8- tiers, which varies depending on the amount of water consumed. In order for the Water Enterprise to be fully self - sustaining without assistance from the General Fund, the City will necessarily need to establish new rates through a Prop 218 protest ballot process; if the proposition passes, the City will be able implement the rate increases proposed herein. 1 A unit of water is defined as 100 cubic feet, or 748 gallons. Expected Water Department Revenues and Expenses for the Next Five Years The City of El Segundo projects the revenues and expenses associated with operating a Water Department and providing reliable drinking water to approximately 5200 users to be: Projected 2014/15- 2018/19 Water Department Revenues and Expenses Current Year FY 2014/15 Projected FY 2015/16 Projected FY 2016/17 Projected FY 2017/18 Projected FY 2018/19 Fixed Expenses Personnel Services 1,358,776 1,399,539 1,441,525 1,484,771 1,529,314 Administrative Charges 387,280 398,898 410,865 423,191 435,887 Insurance and Claims 509,232 524,509 540,244 556,452 573,145 Subtotal Fixed Expenses 2,255,288 2,322,947 2,392,635 2,464,414 2,538,347 Variable Expenses Utilities 33,737 34,749 35,791 36,865 37,971 Materials and Supplies 189,211 194,887 200,734 206,756 212,959 Water Purchases - Potable 10,746,820 10,908,022 11,235,263 11,572,321 11,977,352 Water Purchases - Recycled 8,631,560 8,761,033 9,023,864 9,294,580 9,619,891 Contractual Services 77,169 79,484 81,868 84,324 86,854 Repairs and Maintenance 201,273 207,311 213,530 219,936 226,534 Subtotal- Variable Expenses 19,879,769 20,185,487 20,791,051 21,414,783 22,161,561 Total Expense 22,135,057 22,508,433 23,183,686 23,879,197 24,699,907 Capital Annual Water Main Improvement 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000 AMR Meters 250,000 300,000 300,000 300,000 300,000 Reservoir Maintenance 60,000 - - - - New Venturi Meters 200,000 - - - Pump Station Improvements - 600,000 - - - SCADA Upgrade 150,000 - - - New Pipes/Flow Improvements - 750,000 1:000,000 1,000,000 1,000,000 Yard Piping Modifications - 250,000 - - Valve Replacements - - 250,000 250,000 - Chlorination Facilitv at the Yard - - - 250,000 - Pressure Reducing Station Improvement - - - - 500,000 Total Capital 1,510,000 3,300,000 3,300,000 3,300,000 3,300,000 Total Expenditure 23,645,057 25,808,433 26,483,686 27,179,197 27,999,907 Revenues Potable Water Sales 11,263,572 11,826,750 12,418,088 13,038,992 13,690,942 Recycled Water Sales 8,631,560 8,761,033 9,023,864 9,294,580 9,619,891 Recycled Water Surcharge 2,721,530 2,857,607 3,000,487 3,150.,511 3,308,037 Capacity Char es 1,893,739 1,988,426 2,087,847 2,192,240 2,301,851 Miscelaneous Revenue 29,705 30,596 31,514 32,460 33,433 Interest 12,731 13,113 13,506 13,911 14,329 Total revenues 24,510,401 25,433,816 26,530,286 27,676,323 28,920,721 Annual Retained Earnings 865,343 374,617 46,600 497,126 920,813 Cummulative Retained Earnings 865,343 490,726 537,326 1,034,452 1,955,265 Proposed Potable Water Rate Structure To help evaluate the need for and propose new potable water rates that will cover the expenses anticipated over the next five years, staff retained AKM Consulting Engineers to conduct a water rate study (attached). The study recommends two options for tiered potable water rates that would fully cover the expenses required to operate the enterprise over the next five years. The first option represents a continuance of the current 8- tiered rate structure for all users with moderate monthly increases in each category. The second option proposes to 1) decouple the single family residential (SRF) rate structure from the other categories (industrial, commercial, institutional, multi - family) in order to promote more aggressive conservation among single family residential users and 2) condense the monthly rates into four tiers that are more applicable to each user group. Both options include subsidized lifeline rates for qualifying households. Under either option, the proposed rate increases will generate the necessary revenue for operations, maintenance, capital projects and the purchase of water from West Basin Municipal Water District (WBMWD). It will also generate a reserve fund for emergencies and water loss. The capacity charges and fire service charges (for certain user groups) proposed below are the same for both options and are thus presented only once. 1. Proposed Monthly Capacity Charges and Fire Service Charges Proposed Monthly Capacity Rates Meter Size October 2014 July 2015 July 2016 July 2017 Jul 2018 $ 50.79 July 2019 5/8" x 3/4" and 3/4" $ 9.36 $ 9.83 $ 10.32 $ 10.84 $ 11.38 $ 11.95 5/8" x 3/4" and 3/4" Lifeline $ 4.68 $ 4.92 $ 5.16 $ 5.42 $ 5.69 $ 5.98 1'" $ 21.23 $ 22.29 $ 23.41 $ 24.58 $ 25.81 $ 27.10 1" Lifeline $ 10.62 $ 11.15 $ 11.70 $ 12.29 $ 12.90 $ 13.55 2" $ 49.29 $ 51.75 $ 54.34 $ 57.06 $ 59.91 $ 62.90 3" $ 110.95 $ 116.50 $ 122.33 $ 128.44 $ 134.86 $ 141.61 4" $ 196.86 $ 206.71 $ 217.04 $ 227.90 $ 239.29 $ 251.25 6" $ 368.06 $ 386.46 $ 405.78 $ 426.07 $ 447.37 $ 469.74 8" $ 645.23 $ 677.49 $ 711.36 $ 746.93 $ 784.28 $ 823.49 10" $ 1,009.46 $ 1,059.93 $ 1,112.93 $ 1,168.58 $ 1,227.00 $ 1,288.35 12" $ 1,453.48 $ 1,526.16 $ 1,602.47 $ 1,682.59 $ 1,766.72 $ 1,855.05 16" $ 2,580.90 $ 2,709.95 $ 2,845.44 $ 2,987.71 $ 3,137.10 $ 3,293.96 20" $ 4,030.92 $ 4,232.46 $ 4,444.09 $ 4,666.29 $ 4,899.61 $ 5,144.59 Monthly Fire Service Charges Meter Size October 2014 July 2015 JWy 2016 July 2017 July 2018 July 2019 2" $ 46.07 $ 48.37 $ 50.79 $ 53.33 $ 56.00 $ 58.80 3" $ 70.32 $ 73.84 $ 77.53 $ 81.40 $ 85.47 $ 89.75 4" $ 94.58 $ 99.31 $ 104.27 $ 109.49 $ 114.96 $ 120.71 6" $ 143.08 $ 150.23 $ 157.75 $ 165.63 $ 173.91 $ 182.61 10" $ 240.10 $ 252.11 $ 264.71 $ 277.95 $ 291.84 $ 306.44 2. Proposed Monthly Rate Structures (per unit, or 100 ft) a. Option 1: 8 -Tiers Monthly Consumption Charges for all Users, Including the Lifeline Rate* Tier Range 2014 2015 2016 2017 2018 2019 1 0 -5 $ 2.0435 $ 2.1011 $ 2.2272 $ 2.3608 $ 2.5024 $ 2.6526 1- lifeline 0 -5 $ 1.0219 $ 1.0507 $ 1.1137 $ 1.1806 $ 1.2514 $ 1.3265 2 5 -10 $ 2.7467 $ 2.8242 $ 2.9937 $ 3.1733 $ 3.3637 $ 3.5655 2- Lifeline 5 -10 $ 1.3734 $ 1.4122 $ 1.4969 $ 1.5867 $ 1.6820 $ 1.7829 3 10 -15 $ 3.4497 $ 3.5470 $ 3.7598 $ 3.9854 $ 4.2245 $ 4.4780 4 15 -20 $ 4.1527 $ 4.2698 $ 4.5260 $ 4.7975 $ 5.0854 $ 5.3905 5 20 -30 $ 3.3748 $ 3.4670 $ 3.6750 $ 3.8955 $ 4.1293 $ 4.3770 6 30 -50 $ 3.5154 $ 3.6145 $ 3.8314 $ 4.0613 $ 4.3049 $ 4.5632 7 50 -100 $ 3.6499 $ 3.7528 $ 3.9780 $ 4.2166 $ 4.4696 $ 4.7378 8 100+ $ 3.7263 $ 3.8314 $ 4.0613 $ 4.3050 $ 4.5633 $ 4.8371 * Subject to higher adjustments per West Basin Municipal Water District increases that are passed through to the City based upon West Basin's increased costs in operations and water purchase imposed after adoption of these rates. b. Option 2: 4 -Tiers for SFR Users, 4 -Tiers for Non -SFR Users Single Family Residence Monthly Consumption Charges New Tiers Ran a 2015 2016 2017 2018 2019 1 0 -10 $ 2.3200 $ 2.4360 $ 2.5578 $ 2.6857 $ 2.8200 1- Lifeline 0 -10 $ 1.1600 $ 1.2180 $ 1.2789 $ 1.3428 $ 1.4100 2 10 -20 $ 4.2698 $ 4.4833 $ 4.7075 $ 4.9428 $ 5.1900 3 20 -50 $ 4.8500 $ 5.0925 $ 5.3471 $ 5.6145 $ 5.8952 4 50+ $ 4.2698 $ 4.4833 $ 4.7075 $ 4.9428 $ 5.1900 Non - Residential /Multi Family Monthly Consumption Charges New Tiers Ran a 2015 2016 2017 2018 2019 1 1 0 -10 $ 2.8242 $ 2.9654 $ 3.1137 $ 3.2694 $ 3.4328 2 10 -20 $ 3.4500 $ 3.6225 $ 3.8036 $ 3.9938 $ 4.1935 3 20 -50 $ 3.6500 $ 3.8325 $ 4.0241 $ 4.2253 $ 4.4366 4 50+ $ 3.8314 $ 4.0230 $ 4.2241 $ 4.4353 $ 4.6571 * Subject to higher adjustments per West Basin Municipal Water District increases that are passed through to the City based upon West Basin's increased costs in operations and water purchase imposed after adoption of these rates. The proposed water rates for both options are based upon actual consumption of water and meter capacity. A survey of current water bills shows that the average residential customer with a 5/8' x 3/4" meter using 12 units of water per month pays about $39.77 monthly for potable water service. The proposed rate would increase that bill by $1.31 or $1.33 in the first year depending on the option chosen. The following table uses the residential consumption average to show the difference between current and proposed rates: The actual water bills will vary from month -to month based on amount of water actually used. Comparison with Other Agencies A comparison of water rates to those of surrounding agencies is provided in the table below. The proposed water rate options for FY 2014 /15 are well below average of virtually ever other agency except Santa Monica. $90.00 $85,00 $80.00 $75.00 $70 „00 $65.00 $60.00 $55= $50.00 $45.00 $40.00 $3500 $3000 $2500 $2000 $1500 $1000 $500 $000 Comparison of Monthly Water Bills to Other Agencies Typical Residence with 3/4" Water Meter and Monthly Use of 12 Units K Recycled Water The City's current agreement with Chevron Products Company and the West Basin Municipal Water District (WBMWD) allows the City to charge $0.7894 per unit of recycled water sold to Current Proposed Option 1 First Year (_ 8 Tiers ) Proposed Option 2: First Year (4 Tiers Water Capacity Charge $8.92 $9.36 $9.36 Water Consumption Charge $30.85 $31.72 $31.74 Total - Monthly $39.77 $41.08 $41.10 Net Increase $1.31 $1.33 Increase Per Da (at 30 Days) $0.04 $0.04 The actual water bills will vary from month -to month based on amount of water actually used. Comparison with Other Agencies A comparison of water rates to those of surrounding agencies is provided in the table below. The proposed water rate options for FY 2014 /15 are well below average of virtually ever other agency except Santa Monica. $90.00 $85,00 $80.00 $75.00 $70 „00 $65.00 $60.00 $55= $50.00 $45.00 $40.00 $3500 $3000 $2500 $2000 $1500 $1000 $500 $000 Comparison of Monthly Water Bills to Other Agencies Typical Residence with 3/4" Water Meter and Monthly Use of 12 Units K Recycled Water The City's current agreement with Chevron Products Company and the West Basin Municipal Water District (WBMWD) allows the City to charge $0.7894 per unit of recycled water sold to Chevron in addition to the actual cost of the recycled water. The City's renewed Agreement with Chevron allows the recycled water surcharge to continue increasing at the same percentage as the potable water charge increases. The recycled water markup for Chevron Products Company for the FY 2014/15 through FY 2018/19 is shown in the table below: Proposed Recycled Water Surcharge Unit of Existing Proposed Proposed Proposed Proposed Proposed Recycle 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 water Surcharge Surcharge Surcharge Surcharge Surchar a Surcharge 100 CF $0.7894 $0.8289 $0.8703 $0.9138 $0.9595 $1.0075 The recycled water surcharge offsets the loss from potable water sales to Chevron that the City would otherwise have accrued had Chevron no converted to recycled water use. The surcharge funds are used to help support the functions of the Water Department as well as the City's water CIP. Wastewater Ente Expenses and Proiected Revenues Like the Water Enterprise Fund, the Sewer Enterprise Fund is intended to be a self sustaining enterprise that provides wastewater collection services to El Segundo's customer base. The City is generally divided into two districts, one whose users are predominantly located west of Sepulveda Blvd. and discharge waste to the City of Los Angeles's Hyperion Treatment Plant and another whose users are located predominantly east of Sepulveda Blvd. and discharge waste to the County Sanitation Districts of Los Angeles County. The sewer fees include four components which have not increased since the last Wastewater Proposition 218 process conducted in 2004. They are: • Wastewater Service Fee (flat monthly fee assessed to all users) • Sewer Fee (assessed to all users based on potable water consumption; e.g., volume fee) • Treatment Fee (charged to users west of Sepulveda for Hyperion processing, based on user type and meter size) • Quality Surcharge (variable and charged to commercial and industrial users west of Sepulveda Blvd., billed once annual based on constituency of flow; not a part of Prop 218 measure) There is only one option presented herein for increases to the sewer rate structure. The new proposed rate will generate sufficient revenue to continue supporting the operations of the Wastewater Division, including operations and maintenance, capital projects and treatment fees paid to the City of Los Angeles for waste delivered to its Hyperion Treatment Facility. It will also provide for emergency response and unanticipated system repairs. The City of El Segundo expects that the costs of operating the Sewer Department and providing reliable wastewater service is as follows: 2014/15- 2018/19 Wastewater Department Revenues and Expenses Expenses 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Fixed Expenses Personnel Services S 873,749 S 899,961 $ 926,960 S 954,769 $ 983.412 Administrative Charges $ 159,238 $ 164,015 $ 168,936 $ 174,004 $ 179,224 Insurance and Claims $ 236,900 $ 244,007 $ 251,327 $ 258,867 $ 266,633 Subtotal -Fixed Expenses $ 1,269,887 $ 1,307,984 $ 1,347,223 $ 1,387,640 $ 1,429,269 $ $ $ $ $ Variable Expenses $ $ $ - $ $ _ Utilities 5 66.950 S 68.959 S 71.027 S 73,158 S 75,353 Materials and Supplies S 100,734 $ 103,756 $ 106,869 S 110,075 $ 113,377 Contractual Services -Other $ 393,023 $ 404,814 $ 416,958 $ 429,467 $ 442,351 Contractual Services- Hyperion S 1,293,800 $ 1,494,600 $ 1,567,400_ $ 1,564,600 $ 1,207,000 Repairs and Maintenance $ 84,563 $ 87,100 $ 89,713 $ 92,404 $ 95,176 Subtotal - Variable Expenses $ 1,730,297 $ 1,782,206 $ 1,835,672 $ 1,890,742 $ 1,947,465 $ $ $ $ $ 'Total Expense $ 3,000,184 $ 3,090,190 $ 3,182,895 $ 3,278,382 S 3,376,734 Capital $ - $ $ S $ - Annual Sewer Main Improvement S 1,000,000 S 1,000,000 S 500,000 S 500,000 $ 500,000 Pump Station Maintenance $ 80,000 $ 80,000 $ 80,000_ $ 80,000_ $ 80,000 Pump Station #1 and #7 Upgrade $ 2,200,000 $ $ - $ - $ - Lifeguard Pump and Force Main $ 450,000 S S - S - S Pump Station Rehab and Force Main Replacement S 150,000 $ 500,000 S 100,000 S 300,000 $ 300,000 AMR Meters $ 250,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 El Segundo Relief Sewer $ - $ 1,300,000 $ - $ $ Standard St. Sewer Upgrade $ $ $ 800,000 S $ Sewer Upgrade $ $ - $ - $ 400,000 $ 400,000 'Total Capital S 4,130,000 S 3,180,.000 $ 1,780,000 $ 1,580,000 S 1,580,000 S $ S S $ 'Total Expenditure $ 7,130,184 $ 6,270,190 $ 4,962,895 $ 4,858,382 $ 4,956,734 Revenues $ - S $ $ $ WastwaterService Fee $ 967,443 $ 1,044,839 $ 1,128,426 $ 1,218,700 $ 1,316,196 .Sewer Charge $ 1,290.137 S 1,393,348 $ 1,504,815 S 1,625,201 $ 1,755,217 Treatment Charge S 1300.000 $ 1,500,000 S 1.600,000 $ 1.600,000 S 1,600,000 Quality Surcharge $ 249,965 $ 249,965 $ 249,965 $ 249,965 $ 249,965 Miscelaneous Revenue $ - $ - $ $ $ - Interest $ 9,974 $ 10,273 $ 10,581 $ 10,898 $ 11,225 Total revenues $ 3,817,519 $ 4,198,424 $ 4,493,787 $ 4,704,764 $ 4,932,603 ,Annual Retained Earnings $ (3,312,665) $ (2,071,765) $ (469,108) $ (153,618) $ (24,130) Cummulative Retained Earnings S 4,428,229 $ 2,356,463 1 $ 1,887,3561 $ 1,733,738 $ 1,709,607 Proposed Fixed Monthly Wastewater Service Fees 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Single Family Residential 3/4' $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 1" $ 5.82 $ 6.29 $ 6.79 $ 7.33 $ 7.92 1.5 " $ 6.31 $ 6.81 $ 7.36 $ 7.95 $ 8.58 2" $ 6.79 $ 7.34 $ 7.92 $ 8.56 $ 9.24 Multi- family Residential 3/4' $ 7.77 $ 8.39 $ 9.06 $ 9.78 $ 10.56 1" $ 10.92 $ 11.79 $ 12.74 $ 13.75 $ 14.85 1.5" $ 16.49 $ 17.81 $ 19.24 $ 20.77 $ 22.44 2" $ 36.39 $ 39.30 $ 42.44 $ 45.83 $ 49.50 3" $ 126.14 $ 136.24 $ 147.13 $ 158.91 $ 171.62 4" $ 169.81 $ 183.39 $ 198.06 $ 213.91 $ 231.02 Lifeline 3/4' $ 2.43 $ 2.62 $ 2.83 $ 3.06 $ 3.31 1"' $ 2.43 1 $ 2.62 $ 2.83 $ 3.06 $ 3.31 Commercial (West) 3/4' $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1"' $ 13.82 $ 14.93 $ 16.12 $ 17.41 $ 18.81 1.54' $ 24.26 $ 26.20 $ 28.29 $ 30.56 $ 33.00 2" $ 63.07 $ 68.12 $ 73.57 $ 79.45 $ 85.81 3" $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 4" $ 509.411 $ 550.17 $ 594.18 $ 641.72 $ 693.05 6 "° 1 $ 509.411 $ 550.171 $ 594.18 $ 641.72 $ 693.05 Commercial (East) 1" $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1.5" $ 33.97 $ 36.68 $ 39.62 $ 42.79 $ 46.21 2" $ 97.03 $ 104.79 $ 113.17 $ 122.23 $ 132.00 3'" $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 41' $ 218.32 $ 235.79 $ 254.65 $ 275.02 $ 297.02 61" $ 557.93 $ 602.56 $ 650.771 702.83 $ 759.05 Industrial (West) 3/4" $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 1"' $ 5.82 $ 6.29 $ 6.79 $ 7.33 $ 7.92 1.5" $ 17.95 $ 19.39 $ 20.94 $ 22.61 $ 24.42 21' $ 53.36 ! $ 57.63 $ 62.24 $ 67.22 $ 72.60 3 " $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 4" $ 194.07 $ 209.59 $ 226.36 $ 244.47 $ 264.02 6 " $ 194.07 $ 209.59 $ 226.36 j $ 244.47 $ 264.02 Industrial (East) 3/4" $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1"' $ 13.34 $ 14.41 $ 15.56 $ 16.80 $ 18.15 1.5 " $ 24.26 $ 26.20 $ 28.29 $ 30.56 $ 33.00 2" $ 53.36 $ 57.63 $ 62.24 $ 67.22 $ 72.60 3" $ 218.32 $ 235.79 $ 254.65 $ 275.02 $ 297.02 4" $ 339.61 $ 366.77 $ 396.12 $ 427.81 $ 462.03 6" $ 921.80 $ 995.55 $ 1,075.19 $ 1,161.20 $ 1,254.10 Institutional 3/4" $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 1" $ 6.79 $ 7.34 $ 7.92 $ 8.56 $ 9.24 1.5" $ 10.18 $ 11.00 $ 11.88 $ 12.83 $ 13.86 2" $ 14.56 $ 15.72 $ 16.98 $ 18.34 $ 19.81 3 " $ 38.82 $ 41.92 $ 45.27 $ 48.90 $ 52.81 4 "' $ 48.51 $ 52.39 1 $ 56.59 $ 61.11 $ 66.00 6" $ 48.51 $ 52.39 $ 56.59 $ 61.11 $ 66.00 Proposed Month1v Sewer Fees Proposed Monthiv Treatment Fee 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Single Family Residential $ 0.54 $ 0.58 $ 0.63 $ 0.68 $ 0.73 Multi - family Residential $ 0.67 $ 0.72 $ 0.78 $ 0.84 $ 0.91 Lifeline $ 0.27 $ 0.29 $ 0.31 $ 0.34 $ 0.37 Commercial $ 0.77 $ 0.83 $ 0.89 $ 0.97 $ 1.04 Industrial $ 0.77 $ 0.83 $ 0.89 $ 0.97 $ 1.04 Institutional $ 0.67 $ 0.72 $ 0.78 $ 0.84 $ 0.91 Proposed Monthiv Treatment Fee 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Single Family Residential 3/4' $ 13.51 $ 15.59 $ 16.63 $ 16.63 $ 16.63 1" $ 17.18 $ 19.82 $ 21.15 $ 21.15 $ 21.15 1.5" $ 18.59 $ 21.45 $ 22.87 $ 22.87 $ 22.87 2" $ 19.74 $ 22.77 $ 24.29 $ 24.29 $ 24.29 Multi- family Residential 3/4' $ 22.33 $ 25.76 $ 27.48 $ 27.48 $ 27.48 1" $ 31.28 $ 36.10 $ 38.50 $ 38.50 $ 38.50 1.5" $ 47.72 $ 55.07 $ 58.74 $ 58.74 $ 58.74 2" $ 107.03 $ 123.50 $ 131.73 $ 131.73 $ 131.73 3" _ $ 363.80 $ 419.77 $ 447.75 $ 447.75 $ 447.75 4" $ 500.58 $ 577.59 $ 616.10 $ 616.10_ $ 616.10 Lifeline 3/4' $ 6.76 $ 7.80 $ 8.32 $ 8.32 $ 8.32 1" $ 8.60 $ 9.92 $ 10.58 $ 10.58 $ 10.58 Commercial 3/4' $ 15.94 $ 18.39 $ 19.62 $ 19.62 $ 19.62 1" $ 39.79 $ 45.91 $ 48.97 $ 48.97 $ 48.97 1.5" $ 73.27 $ 84.54 $ 90.18 $ 90.18 $ 90.18 2" $ 193.15 $ 222.87 $ 237.73 $ 237.73 $ 237.73 3" $ 358.00 $ 413.08 $ 440.61 $ 440.61 $ 440.61 4" $ 1,529.74 $ 1,765.09 $ 1,882.76 $ 1,882.76 $ 1,882.76 6" $ 1,529.74 $ 1,765.09 $ 1,882.76 $ 1,882.76 $ 1,882.76 Industrial 3/4" $ 13.22 $ 15.25 $ 16.27 $ 16.27 $ 16.27 1" $ 17.87 $ 20.62 $ 21.99 $ 21.99 $ 21.99 1.5" $ 51.63 $ 59.58 $ 63.55 $ 63.55 $ 63.55 2" $ 157.62 $ 181.87 $ 193.99 $ 193.99 $ 193.99 3" $ 395.11 $ 455.89 $ 486.29 $ 486.29 $ 486.29 4" $ 561.35 $ 647.71 $ 690.89 $ 690.89 $ 690.89 6" $ 561.35 $ 647.71 $ 690.89 $ 690.89 $ 690.89 Institutional 3/4" $ 12.49 $ 14.41 $ 15.38 $ 15.38 $ 15.38 1" $ 19.79 $ 22.83 $ 24.35 $ 24.35 $ 24.35 1.5" $ 30.11 $ 34.74 $ 37.06 $ 37.06 $ 37.06 2" $ 45.65 $ 52.68 $ 56.19 $ 56.19 $ 56.19 3" $ 113.21 $ 130.63 $ 139.34 $ 139.34 $ 139.34 -4" $ 134.06 $ 154.69 $ 165.00 $ 165.00 $ 165.00 6" $ 134.06 $ 154.69 1 $ 165.001 $ 165.00 1 $ 165.00 The combined proposed sewer rates are derived from projected expenses and the revenue needed to cover those projected expenses. The following tables showcase the difference between current and proposed rates for both wastewater districts: East of Blvd. Wastewater Service Fee Current $5.39 Proposed I $5.82 Sewer Fee $9.00 $9.72 Treatment Fee* $11.75 $12.18 Total - Monthly $26.14 $27.72 Net Increase $1.58 Increase Per Day (at 30 Days) $0.05 * Treatment fees are paid directly to LACSD through property tax bills but are shown here for comparison purposes only. West of Blvd. Wastewater Service Fee Current $5.39 Proposed I $5.82 Sewer Fee $9.00 $9.72 Treatment Fee* $13.45 $17.18 Total - Monthly $27.84 $32.72 Net Increase $4.88 Increase Per Da (at 30 Da s) $0.16 The significant treatment fee increase is a pass through from the City of Los Angeles and beyond the control of El Segundo. Comparison with Other Agencies A comparison of water rates to those of surrounding agencies is provided in the table below. The proposed wastewater rate options for FY 2014/15 are well below area average, with exception for Torrance and Inglewood who are currently operating their enterprises at a deficit (which are funded with accumulated balances from enterprise funds). $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 Total Monthly Cost of Sewer Service O U O 00 C 1 m a m > c o a a m U e ~ Q > M m o m <D (D a) m C W cn cn cn U) cn N Q' 93 W The Proposition 218 Process In November 1995, the California electorate approved Proposition 218 that requires certain procedures be followed with regard to "property- related" fee increases imposed by governmental agencies. Initially, case law indicated that these procedures would not be applicable to water rate increases. However, a 2006 California Supreme Court decision held Proposition 218 fee increase procedures must be followed for any proposed increases to the City's water rates. In short, water rate increases are subject to a "majority protest" process that provides that if a majority of the parcels in the City protest the proposed rate increase the City cannot impose the increase. Just as there initially was some disagreement between lawyers and court decisions regarding which fees were subject to Proposition 218, there is currently a disagreement with respect to the protest ballot process. Specifically, there is a disagreement amongst attorneys that represent public agencies (and potentially between the language approved by the voters and some recent legislation) as to whether tenants that pay for fees covered by Proposition 218 must be afforded the opportunity to protest proposed fee increases. Last year the state legislature attempted to clarify this issue by passing legislation that on its face requires that tenants be afforded the opportunity to protest such fee increases. The City Attorney's Office believes the legislation is not consistent with Proposition 218 and believes it is potentially invalid since the language in Proposition 218 stated that the notice regarding the protest process must be sent to the "record owner" and the owner was the person that had the right to file the protest. Despite the City Attorney's Office opinion on this matter, staff and the City Attorney agree that the most conservative approach is to send the protest ballots to the property owners and to the tenants if the tenant is the water customer. The City is only required to count one protest per parcel. Accordingly, even if both the owner and tenant file a protest, only one protest shall be counted for purposes of determining whether there is a "majority protest" as described below. Proposition 218 requires that the City provide all properties receiving the service for which the fee is charged (in this case, water treatment and distribution) with a minimum of 45 days written notice prior to Council holding a public hearing on a proposed rate increase. The property owners and now tenants have the ability to "protest" the proposed rate increase until the close of the public hearing. If a majority of the parcels file written protests with the City prior to the close of the public hearing, Proposition 218 states that the City cannot implement the proposed increase. If a majority of the parcels do not protest the proposed increase, the Council has the authority to implement the proposed rate increase. In accordance with Proposition 218 requirements, several steps have been taken to comply with the law. Drafts of a Notice to Parcel Owners of a Proposed Rate Increase and a Notice of a Public Hearing set for November 18, 2014 at 7:00 p.m., and a Schedule of Proposed Water Rate Adjustments have been prepared and are attached for Council review and comment. The most current assessor's parcel roll from the Los Angeles County Assessor's office has been obtained and a direct mailing to each parcel owner within the City limits will be made. Additionally, to the extent a tenant rather than a property owner is the water customer, a protest notice will be sent to the tenant utilizing the water billing address that the City has on file. Staff is prepared to produce the required notices and mail out to all property owners no later than October 2, 2014. Finally, staff is recommending that Council adopt the attached resolution for purposes of setting forth some rules and regulations regarding the process for distributing, processing and counting protest ballots. The rules and regulations are consistent with Proposition 218, legislation relating to Proposition 218 and the process outlined above. For example, it states who will be sent notices and ballots, which department at the City is responsible for receiving and storing the ballots, the process for counting the ballots, and a process by which replacement ballots may be requested. Staff is now requesting that City Council: 1. Select which water rate increase option it would like to move forward through the Proposition 218 protest ballot process. 2. Direct staff to implement the Proposition 218 protest ballot procedures for proposed potable water and sewer rate increases. 3. Adopt a resolution establishing procedures for mailing, handling and counting Proposition 218 ballots. 4. Set a Public Hearing on November 18, 2014 for Council consideration of the proposed water and sewer rate increases. CITY OF EL SEGUNDO Water Rate Study 2014 Prepared for: CITY OF EL SEGUNDO 350 Main Street El Segundo, California 90245 Prepared by: AKM CONSULTING ENGINEERS 553 Wald Irvine, California 92618 September 2014 CITY OF EL SEGUNDO WATER RATE STUDY 2014 TABLE OF CONTENTS Section No. PAGE 1. SUMMARY ... ..................................................................................... ................... ................................. ........................... 3 2. BACKGROUND .................................................................................................................................. ..............................3 3. EXISTING WATER SYSTEM ......................................................................................................... ..............................4 4. CAPITAL IMPROVEMENT PROGRAM ..................................................................................... ..............................5 S. EXISTING WATER RATES AND CHARGES ............................................................................ ..............................5 Current Consumption Charges ................................................................................................ ................,.............6 6. WATER UTILITY EXPENDITURES ........................................................................................... ..............................7 7. WATER UTILITY REVENUES ...................................................................................................... ..............................8 8. PROPOSED RATES .......................................................................................................................... ..............................9 9. MONTHLY WATER BILLS .......................................................................................................... .............................14 Revenues and Expenses ........................................................................................................... .............................11 10. COMPARISON OF MONTHLY WATER BILLS ..................................................................... .............................14 Capacity Charges ( Monthly) ................................................................................................... .............................12 LIST OF FIGURES Fire Service Charges (Monthly) ............................................................................................ .............................12 Figure No. PAGE 1 Historical Water Purchases ...................................................................................................... ..............................4 2 2012 -13 Water Utility Expenditures ................................................................ ..............................7 3 Comparison of Monthly Water Bills to Other Agencies .............................................. .............................15 LIST OF TABLES Table No. PAGE 1 Water Capital Improvement Project Phasing ................................................................... ..............................3 2 Current Monthly Capacity Charges ........................................................................................ ..............................6 3 Current Consumption Charges ................................................................................................ ................,.............6 4 Imputed Unit Cost per 100 Cubic Feet Sold ...................................................... ..............................8 5 Water Utility Revenues - 2012 - 2013 ................................................................................... ..............................9 6 Revenues and Expenses ........................................................................................................... .............................11 7 Capacity Charges ( Monthly) ................................................................................................... .............................12 8 Fire Service Charges (Monthly) ............................................................................................ .............................12 9 Recycled Water Surcharge ...................................................................................................... .............................12 10 Option 1: Consumption Charges ($/100 Cubic Feet) .................................................. .............................13 11 Option 2: Single Family Residence Consumption Charges ($/100 Cubic Feet) .............................13 12 Option 2:Non- Residential /Multi- Family Consumption Charges ($/100 Cubic Feet) ................13 13 Option 1: Average Monthly Bill Comparisons, ........ . ................ .................................................................. 14 14 Option 1: Average Monthly Bill Comparisons ................................................................. .............................14 2 RE Segundo, City of\ES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 This water rate study evaluated the recent expenditures and revenues of the City of El Segundo's water utility; developed a capital improvement and facility replacement program schedule; and formulated a funding method that will support the continuing operation of the utility as a self supporting enterprise. The existing rate structure has a Capacity Charge and a Consumption Charge component. In addition to the Capacity Charges, an surcharge of $0.7894 per unit (100 cubic feet, or 748 gallons) is applied to all recycled water consumed by Chevron. The existing Capacity Charge and potable water Consumption Charge structures were established in 2009, and adjusted annually beginning in 2010. The rate increases have paralleled the percentage increases in the purchase cost of potable water. The Metropolitan Water District of Southern California (Metropolitan) has implemented significant increases in recent years and projects rate increases of approximately 13% over the next five years. The existing rates, if maintained at the current level, will not generate adequate revenues to support the operation and maintenance of the water utility, the proposed capital improvement and replacement program and the increasing cost of imported potable water. The City of El Segundo operates its water utility as a self sufficient enterprise. In order to continue this, the water utility will need to generate sufficient revenues to meet normal and emergency demands in accordance with federal and state requirements, support operations and maintenance, fund its long term facility replacement and capital improvement program, and establish adequate retained earnings to respond to emergencies. Two options for modifying the existing Capacity Charges and potable water Consumption Charges were evaluated. Option 1 maintains the current Capacity Charge schedule and the eight tier Consumption Charge structure. Under this option the Consumption Rates and Capacity Charges for all meter sizes and customers are increased 5% per year for the next five years to generate sufficient revenue to continue self sufficient operation of the water utility including facility replacement and planned capital improvements.. Option 2 maintains the current Capacity Charge schedule but simplifies the current eight (8) tier Consumption Charge structure to four (4) tiers. Separate Consumption Charge schedules are established for single family residential and non - residential /multi - family residential customers. Under this option the Consumption Charges and Capacity Charges for all meter sizes and customers are also increased 5% per year for the next five years to generate sufficient revenue to continue self sufficient operation of the water utility including facility replacement and planned capital improvements. The two options generate equivalent amounts of revenue. The Recycled Water Surcharge Rate is recommended to be also increased 5% per year under both options. The existing monthly water bill of an average single family /duplex customer with a monthly water use of 12 units (1,200 cubic feet, or 8,976 gallons) is $39.77. This monthly bill will increase to $41.08 with Optionl and $41.10 with Option 2. The proposed monthly bill is lower than for the customers of all nearby cities except Santa Monica. The City of El Segundo provides water service to the area within its boundaries through approximately 5,200 meters. Sources of supply consist of potable non - interruptible water from Metropolitan through the West Basin Municipal Water District (West Basin) and recycled water from West Basin. The City's combined water purchases averaged 17,178 acre feet per year over the past ten years. Over this period, recycled water use has varied from a low of 6,638 acre feet in 2010 -11 (40.1 percent of the total) to 9,034 acre feet in 2009 -10 (45.9 percent of the total), with an average of 7,915 acre feet per R:EI Segundo, City oAES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 year (46.1% of the total). The system is capable of delivering potable water to all the recycled water customers in the event of an outage of the recycled water source. Over the past ten years, potable water purchases have varied from a low of 8,075 acre feet in 2013 -14 (48.4 percent of the total) to 10,961 acre feet in 2011 -12 (61.4 percent of the total), with an average of 9,263 acre feet per year (53.9% of the total). Figure 1 shows the potable and recycled water purchases for the past ten years. 18.000 - 16.000 0 14.000 0 LL 0 12,000 u Q 10.000 0 8.000 E Q 6.000 4,000 2,000 Figure 1 Historical Water Purchases Ten year average = 17,178 AF FY 04.05 FY 05.06 FY 06 -07 FY 07 -08 FY 08 -09 FY 09-10 FY 10.11 FY 11.12 FY 12.13 FY 13.14 Years oNon-Interruptbe ■RecycedWater �3. EXISTING WATER SYSTEM The system's assets consist of: e One 3 million gallon (mg) reinforced concrete reservoir e One 6.3 mg reinforced concrete reservoir e One 0.2 mg elevated riveted steel reservoir e One booster pump station with two motor operated vertical turbine pumps of 2,000 gallons per minute (gpm) capacity each, and one gas engine operated vertical turbine pump of 5,000 gpm capacity e 56 miles of transmission and distribution pipes ranging in size from 4 -inch to 27 -inch diameter. Some of the pipes smaller than 12- inch in diameter date back to 1924. 4 R:EI Segundo, City oflES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 The capital improvement program utilized in this study was developed based upon a review the Water Master Plan, field reviews of the system facilities, and staffs experience with the existing system. Table 1 shows the projects included in the capital improvement program through fiscal year 2018 -2019. Table 1 Water Capital Improvement Project Phasing Description 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 Annual Water Main Improvement $1,000,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 AMR Meters $250,000 $300,000 $300_,000 $300,000 $300,000 Reservoir Maintenance $60,000 New Venturi Meters $200,000 SCADA Upgrade $150,000 New Pi es Flow Improvements $750,000 $1,000,000 $1,000,000 $1,000,000 Yard Piping Modifications $250,000 Valve Replacements $250,000 $250,000 Chlorination Facility at the Yard $250,000 Pressure Reducing Station Improvement $500,000 Totall $1,510,000 $2,7 0,0001 $3,300,0001 $3,300,000 $3,300,000 5. EXISTING WATER RATES AND CHARGES The City of El Segundo's existing water rates were established in 2009 following a detailed study of the Water Enterprise's historical financial information, and the capital improvement program recommended by the Water Master Plan. The existing rate structure has three components: • Capacity Charges to recover a substantial portion of the fixed costs of the Water Enterprise, and build an emergency reserve • Eight tier ascending Consumption Charges for all users. • Markup of $0.7894 per 100 cubic feet of recycled water served to Chevron. a. Capacity Charges - A six -year schedule was approved for the monthly Capacity Charges based upon the assumption that the consumer price index (CPI) would increase at the rate of inflation (3 percent per year). The ordinance adopting the rate structure allowed increasing the Capacity Charges at a higher rate than 3 percent if the increase in the CPI was higher in any year. Table 2 shows the currently established Capacity Charges for 2014 -2015. R:EI Segundo, City of\ES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 Table 2 Current Monthly Capacity Charges Meter Size October 2014 -2015 5/8" x 3/4" and 3/4" $9.36 5/8" x 3/4" and 3/4" Lifeline $4,68 1" -- $21.23 1" Lifeline $10.62 1.5" $ 27.91 2" $49.29 3" $110.95 4" $196.86 6- $368.06 8" $645.23 10" $1,009.46 12" $1,453.48 16" $ 2,580.90 20" $4,030.92 b. Consumption Charges - The first tier of the current Consumption Charge schedule is set lower than the current cost of water purchased from West Basin, which is currently $2.69 per 100 cubic feet. The existing potable water Consumption Charges recover the cost of purchased water starting at the second tier of the rate structure. The balance of the revenues support the variable expenditures of the Water Enterprise including operations and maintenance and the capital improvement program. The ordinance adopting the rate structure allowed increases at the same percentage as West Basin increased the domestic water costs. Current consumption Charges are shown in Table 3. A previously approved increase is scheduled for January 2015 c. Recycled Water - The City's currently charges $0.7894 per 100 cubic feet (748 gallons) as a surcharge on the recycled water sold to Chevron on top of the actual cost of the water. Table 3 Current Consum tion Charge Tier Range (cclf) Rate 1 0 -5 $2.0435 2 5 -10 $2.7467 3 10 -15 $3.4497 4 15 -20 $4.1527 6 30 -50 $3.5154 7 50 -100 $3.6499 8 100+ 1 $3.7263 6 R:EI Segundo, City of1ES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 The water utility's expenditures consist of potable water and recycled water purchases, salaries, benefits, supplies, public utility services, billing and other service charges, capital -fixed assets, and water capital improvements. The total potable and recycled water utility expenditures for 2012 -2013 were $21,738,430. Water purchase cost is the largest expense of the utility, at approximately $18,243,000. The water utility's expenditures consist of potable water and recycled water purchases, salaries, benefits, supplies, public utility services, service charges, capital -fixed assets, and water capital improvements. The water utility expenditures for 2012 -2013 were $21,738,430. Water purchase cost is the largest expense of the utility, at approximately over $18,243,000. Figure 2 illustrates these expenditures. Recycled Water Purchases :17 Figure2 2012 -13 Water Utility Expenditures Personnel 60/ Other Potable Water Purchases 51% Table 4 illustrates the hypothetical unit cost of operating the Water Utility on a unit cost basis per 100 cubic feet of potable water purchased. The largest unit cost component, by far, is water purchases. If there were no additional revenue from Capacity Charges and the Recycled Water Surcharge, then the Consumption Charge would have had to have been $4.06 per 100 cubic feet in 2012 -13 to cover operating expenses and a assumed capital program of $4,000,000 that year. The additional Capacity Charge and Recycled Water Surcharge revenues allowed the actual Consumption Charge to be set lower. R:EI Segundo, City of1ES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 Table 4 Unit Cost per 100 Cubic Feet of Potable Water Purchased Expense Category 2012 -2013 Fixed Expenses Personnel Services $ 0.31 Administrative Charges $ 0.09 Insurance and Claims $ 0.12 Subtotal -Fixed Ex enses $ 0.52 Variable Expenses Utilities $ 0.01 Materials and Supplies $ 0.04 Water Purchases - Potable $ 2.45 Contractual Services $ 0.02 Repairs and Maintenance $ 0.05 Subtotal - Variable Expenses _ $ 2.57 Total Operating Expense $ 3.09 Deferred Capital Improvements $ 0.97 Total Expense $ 4.06 7, WATER UTILITY REVENUES The water utility's revenues consist of interest and rentals, charges for services and commodities, and transfers. Table 4 shows the water utility's revenues for 2012 -2013. Revenues derived from the sale of potable and recycled water are by far the largest portion of the total revenue. There was not a significant capital program in 2012 -13. In addition, Chevron also pays an annual fixed charge of $1,009,800 for recycled water facilities that are not owned by the City that is passed directly through to West Basin. Revenues were higher than the expenditures primarily due to the minimal amount of capital improvements implemented in Fiscal Year 2012 -2013. 8 R:EI Segundo, City oNES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 Table 5 Water Utility Revenues 2012 -2013 Fixed Expenses 2012 -2013 Personnel Services $1,272,174 Administrative Charges $376,000 Insurance and Claims $480,000 Subtotal -Fixed Expenses $2,128,174 Variable Ex euses Utilities $31,800 Materials and Supplies $178,112 Water Purchases - Potable $11,118,117 Water Purchases- Recycled $8,019,769 Contractual Services $72,739 Repairs and Maintenance $189,719 Subtotal - Variable Expenses $19,610,256 Total Ex ense $21,738,430 Revenues Potable Water Sales $12,239,421 Recycled Water Sales $8,019,769 Recycled Water Surcharge $2,468,508 Capacity Charges $1,803,561 Miscelaneous Revenue $28,000 Interest $12,000 Total revenues $24,531,259 Annual Retained Earnings $2,792,829 The City of El Segundo desires to continue to operate its water utility as a self sufficient enterprise. In order to accomplish this, the water utility will operate the system to meet normal and emergency demands in accordance with federal and state requirements, fund its long term facility replacement and capital improvement program, and establish retained earnings to respond to emergencies. Two options for modifying the potable water Consumption Charges were evaluated. The two options generate equivalent amounts of revenue. Option 1 maintains the current Capacity Charge schedule and the eight tier Consumption Charge structure. Under this option, the Consumption Rates and Capacity Charges for all meter sizes and 9 R:EI Segundo, City oAES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 customers are increased 5% per year for the next five years to generate sufficient revenue to continue self sufficient operation of the water utility including facility replacement and planned capital improvements. Option 2 also maintains the current Capacity Charge schedule, but establishes separate Consumption Charge schedules for single family residences and non - residential /multi - family residences. Option 2 simplifies the current eight (8) tier Consumption Charge structure to four (4) tiers for single family residences and four (4) tiers for non - residential /multi - family residences. The Consumption Charge tiers for single family residences increase rapidly with consumption to encourage water conservation. The Consumption Charge tiers for non - residential /multi - family residences increase more gradually since these customers are assumed to have less latitude in implementing water conservation measures such as reducing exterior irrigation. Under this option, the Consumption Charges and Capacity Charges for all meter sizes and customers are also increased 5% per year for the next five years to generate sufficient revenue to continue self sufficient operation of the water utility including facility replacement and planned capital improvements. The Recycled Water Surcharge rate is recommended to be also increased 5% per year under both options. The water utility's revenues and expenses through 2018 -2019 for both options are shown below in Table 6. It will generate retained earnings of $865,000 in 2014 -15, and approximately $1.95 million cumulatively by 2018 -19 to defray additional capital projects or unforeseen expenses. 10 R:EI Segundo, City oNES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 Table 6 Revenues and Expenses 11 RE Segundo, City ofiES Water Rate Study (Aug 14) Current Year FY 2014/15 Projected FY 2015/16 Projected FY 2016/17 Projected FY 2017/18 Projected FY 2018/19 Fixed Expenses Personnel Services 1,358,776 1,399,539 1,441,525 1,484,771 1,529,314 Administrative Charges 387,280 398,898 410,865 423,191 435,887 Insurance and Claims 509,232 524,509 540,244 556,452 573,145 Subtotal -Fixed Expenses 2,255,288 2,322,947 2,392,635 2,464,414 2,538,347 Variable Expenses Utilities 33,737 34,749 35,791 36,865 37,971 Materials and Supplies 189,211 194,887 200,734 206,756 212,959 Water Purchases - Potable 10,746,820 10,908,022 11,235,263 11,572,321 11,977,352 Water Purchases - Recycled 8,631,560 8,761,033 9,023,864 9,294,580 9,619,891 Contractual Services 77,169 79,484 81,868 84,324 86,854 Repairs and Maintenance 201,273 207,311 213,530 219,936 226,534 Subtotal - Variable Ex enses 19,879,769 20,185,487 20,791,051 21,414,783 22,161,561 Total Expense 22,135,057 22,508,433 23,183,686 23,879,197 24,699,907 Capital Annual Water Main Improvement 1,000,000 1,500,000 1,500,000 1,500,000 1,500,000 AMR Meters 250,000 300,000 300,000 300,000 300,000 Reservoir Maintenance 60,000 - - New Venturi Meters 200,000 - - Pump Station Improvements - 600,000 - - SCADA Upgrade - 150,000 - - New Pi es Flow Improvements - 750,000 1,000,000 1,000,000 1,000,000 Yard Piping Modifications - - 250,000 - Valve Re lacements - - 250,000 250,000 - Chlorination Facility at the Yard - - - 250,000 - Pressure Reducing Station Improvement - - - - 500,000 Total Capital 1,510,000 3,300,000 3,300,000 3,300,000 3,300,000 Total Expenditure 23,645,057 25,808,433 26,483,686 27,179,197 27,999,907 Revenues Potable Water Sales 11,263,572 11,826,750 12,418,088 13,038,992 13,690,942 Recycled Water Sales 8,631,560 8,761,033 9,023,864 9,294,580 9,619,891 Recycled Water Surcharge 2,721,530 2,857,607 3,000,487 3,150,511 3,308,037 Capacity Charges 1,893,739 1,988,426 2,087,847 2,192,240 2,301,851 Miscelaneous Revenue 29,705 30,596 31,514 32,460 33,433 Interest 12,731 13,113 13,506 13,911 14,329 Total revenues 24,510,401 25,433,816 26,530,286 27,676,323 28,920,721 Annual Retained Earnings 865,343 374,617 46,600 497,126 920,813 Cummulative Retained Earnin s 865,343 490,726 537,326 1,034,452 1,955,265 11 RE Segundo, City ofiES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 Table 7 shows the Capacity Charge for both rate options, and Table 8 illustrates the monthly Fire Service Charges for both options. Table 9 shows the Recycled Water Surcharge. Tables 10, 11, and 12 Consumption Charges for the rate two rate options.. Table 7 Capacity Char es (Month y) Meter Size October 2014 July 2015 July 2015 July 2016 July 2019 jmly 2017 July 2018 $ 50.79 July 2019 5/8" x 3/4" and 3/4" $ 9.36 $ 9.83 $ 10.32 $ 10.84 $ 11.38 $ 11.95 5/8" x 3/4" and 3/4" Lifeline $ 4.68 $ 4.92 $ 5.16 $ 5.42 $ 5.69 $ 5.98 1" $ 21.23 $ 22.29 $ 23.41 $ 24.58 $ 25.81 $ 27.10 1" Lifeline $ 10.62 $ 11.15 $ 11.70 $ 12.29 $ 12.90 $ 13.55 2" $ 49.29 $ 51.75 $ 54.34 $ 57.06 $ 59.91 $ 62.90 3" $ 110.95 $ 116.50 $ 122.33 $ 128.44 $ 134.86 $ 141.61 4" $ 196.86 $ 206.71 $ 217.04 $ 227.90 $ 239.29 $ 251.25 6" $ 368.06 $ 386.46 $ 405.78 $ 426.07 $ 447.37 $ 469.74 8" $ 645.23 $ 677.49 $ 711.36 $ 746.93 $ 784.28 $ 823.49 10" $ 1,009.46 $ 1,059.93 $ 1,112.93 $ 1,168.58 $ 1,227.00 $ 1,288.35 12" $ 1,453.48 $ 1,526.16 $ 1,602.47 $ 1,682.59 $ 1,766.72 $ 1,855.05 16" $ 2,580.90 $ 2,709.95 $ 2,845.44 $ 2,987.71 $ 3,137.10 $ 3,293.96 20" $ 4,030.92 $ 4,232.46 $ 4,444.09 $ 4,666.29 $ 4,899.61 $ 5,144.59 Table 8 Fire Service Charges (Monthly) Meter Size October 2014 July 2015 July 2016 July 2017 July 2018 July 2019 2" $ 46.07 $ 48.37 $ 50.79 $ 53.33 $ 56.00 $ 58.80 3'' $ 70.32 $ 73.84 $ 77.53 $ 81.40 $ 85.47 $ 89.75 4" $ 94.58 $ 99.31 $ 104.27 $ 109.49 $ 114.96 $ 120.71 6" $ 143.08 $ 150.23 $ 157.75 $ 165.63 $ 173.91 $ 182.61 10" $ 240.10 $ 252.11 $ 264.71 $ 277.95 $ 291.84 $ 306.44 Table 9 Recycled Water Surcharge ($/100 Cubic Feet) July 2014 lulv 2015 July 2016 July 2017 July 2018 Luly 2019 $ 0.7894 $ 0.8289 $ 0.8703 $ 0.9138 $ 0.9595 $ 1.0075 12 R:EI Segundo, City of1ES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 Table 10 Option 1: Consumption Charges ($/100 Cubic Feet) Tier Range 2014 2015 2016 2017 2018 2019 1 0 -5 $ 2.0435 $ 2.1011 $ 2.2272 $ 2.3608 $ 2.5024 $ 2.6526 1- lifeline 0 -5 $ 1.0219 $ 1.0507 $ 1.1137 $ 1.1806 $ 1.2514 $ 1.3265 2 5 -10 $ 2.7467 $ 2.8242 $ 2.9937 $ 3.1733 $ 3.3637 $ 3.5655 2- Lifeline 5 -10 $ 1.3734 $ 1.4122 $ 1.4969 $ 1.5867 $ 1.6820 $ 1.7829 3 10 -15 $ 3.4497 $ 3.5470 $ 3.7598 $ 3.9854 $ 4.2245 $ 4.4780 4 15 -20 $ 4.1527 $ 4.2698 $ 4.5260 $ 4.7975 $ 5.0854 $ 5.3905 5 20 -30 $ 3.3748 $ 3.4670 $ 3.6750 $ 3.8955 $ 4.1293 $ 4.3770 6 30 -50 $ 3.5154 $ 3.6145 $ 3.8314 $ 4.0613 $ 4.3049 $ 4.5632 7 50 -100 $ 3.6499 $ 3.7528 $ 3.9780 $ 4.2166 $ 4.4696 $ 4.7378 8 100+ $ 3.7263 $ 3.8314 $ 4.0613 $ 4.3050 $ 4.5633 $ 4.8371 Table 11 Option 2: Single Family Residence Consumption Charges ($/100 Cubic Feet) New Tiers Ran a 2015 2016 2017 2018 2019 1 0 -10 $ 2.3200 $ 2.4360 $ 2.5578 $ 2.6857 $ 2.8200 1- Lifeline 0 -10 $ 1.1600 $ 1.2180 $ 1.2789 $ 1.3428 $ 1.4100 2 10 -20 $ 4.2698 $ 4.4833 $ 4.7075 $ 4.9428 $ 5.1900 3 20 -50 $ 4.8500 $ 5.0925 $ 5.3471 $ 5.6145 $ 5.8952 4 50+ $ 4.2698 $ 4.4833 $ 4.7075 $ 4.9428 $ 5.1900 Table 12 Option 2: Non- Residential /Multi Family Consumption Charges ($/100 Cubic Feet) New Tiers Range 2015 2016 2017 2018 2019 1 0 -10 $ 2.8242 $ 2.9654 $ 3.1137 $ 3.2694 $ 3.4328 2 10 -20 $ 3.4500 $ 3.6225 $ 3.8036 $ 3.9938 $ 4.1935 3 -50 $ 3.6500 $ 3.8325 $ 4.0241 $ 4.2253 $ 4.4366 4 L510+ $ 3.8314 $ 4.0230 $ 4.2241 $ 4.4353 $ 4.6571 13 R:EI Segundo, City of1ES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 Tables 13 and 14 show the average monthly water bills for single family residential customers with 5/8" x 3/4" and 1" meters based on existing rates for Fiscal Year 2013 -2014, 2014 -2015, and based on the proposed rates for 2014 -2015 for Options 1 and 2, respectively. Table 13 Ovtion 1- Average Monthly Bill Comparisons Meter Size Monthly Water Use Existing 2013 -2014 Proposed 2014 -15 Capacity Charge Capacity Charge Consumption Charge Total Month! Bill Capacity Charge Consumption Charge Total Monthl Bill 5/8 "13/4" 12 $ 8.92 $ 30.85 $ 39.77 $ 9.36 $ 31.72 $ 41.08 1" 18 $ 20.22 $ 53.66 $ 73.88 1 $ 21.23 $ 55.17 $ 76.40 Table 14 Option 2- Average Monthly Bill Comparisons Meter Size Monthly Water Use Existing 2013 -2014 Proposed 2014 -2015 Capacity Charge Consumption Charge Total Month! Bill Capacity Charge Consumption Char a Total Monthl Bill 5/8 "13/4" 12 $ 8.92 $ 30.85 $ 39.77 $ 9.36 $ 31.74 $ 41.10 1" 18 $ 20.22 $ 53.66 $ 73.88 1 $ 21.23 $ 57.36 $ 78.59 The existing monthly water bill of an average single family with a monthly water use of 12 units (1,200 cubic feet, or 8,976 gallons) is $39.77. This monthly bill will increase 3.3% to $41.08 with the previously approved Option 1 rates. This monthly bill would increase essentially the same amount to $41.10 for the Option 2 rate proposal. The monthly bill for both options is lower than for the customers of Beverly Hills ($65.01); Culver City, Gardena, Hawthorne, and Lawndale ($71.80); Lomita ($80.57), Rancho Palos Verdes ($47.98), Rolling Hills ($47.98); Hermosa Beach ($55.86); Redondo Beach ($55.86); Inglewood ($71.80); Manhattan Beach ($71.59), and Torrance ($45.13). Of nearby cities, only Santa Monica would have monthly water bills lower than El Segundo. 14 R:EI Segundo, City oflES Water Rate Study (Aug 14) CITY OF EL SEGUNDO WATER RATE STUDY 2014 $9000 $8500 $6000 $7500 $7000 $6500 $6000 $5500 $50.00 $45.00 $40,00 $35,00 $3000 $2500 $2000 $15.00 $1000 $5.00 $0.00 Figure 3 Comparison of Monthly Water Bills to Other Agencies Comparison of Monthly Water Bills to Other Agencies Typical Residence with 314" Water Meter and Monthly Use of 12 Units 15 R:EI Segundo, City oNES Water Rate Study (Aug 14) CITY OF EL SEGUNDO Sewer Rate Study 2014 Prepared for: CITY OF EL SEGUNDO 350 Main Street El Segundo, California 90245 Prepared by: AKM CONSULTING ENGINEERS 553 Wald Irvine, California 92618 September 2014 CITY OF EL SEGUNDO SEWER RATE STUDY 2014 TABLE OF CONTENTS SECTION NO. PAGE 1. SUMMARY... ... ................................................................................................... ................................ .................. 3 2. BACKGROUND ................................................................................................................................. ..............................3 3. EXISTING SEWER SYSTEM ........................................................................................................ ............................... 4 4. CAPITAL IMPROVEMENT PROGRAM ................................................................................... ............................... 4 5. EXISTING SEWER RATES AND CHARGES ........................................................................... ............................... 4 6. SEWER UTILITY EXPENDITURES .......................................................................................... ............................... 6 7. SEWER UTILITY REVENUES ..................................................................................................... ............................... 6 8. PROPOSED SEWER RATES AND CHARGES ........................................................................ ............................... 7 9. MONTHLY SEWER BILLS ........................................................................................................... .............................11 10. COMPARISON OF MONTHLY SEWER BILLS ...................................................................... .............................11 LIST OF FIGURES FIGURE NO. PAGE 1 COMPARISON OF MONTHLY SEWER BILLS TO OTHER AGENCIES ......................... .............................12 LIST OF TABLES TABLE NO. PAGE 1 SEWER CAPITAL IMPROVEMENT PROJECT PHASING .......... .......................................... ................... .... ,.. 4 2 EXISTING WASTEWATER SERVICE FEES ......................................................................... ............................... 5 3 EXISTING SEWER FEES ............................................................................................................ ............................... 5 4 EXISTING TREATMENT FEES .... ............................................................................................... ........... ................ 6 5 SEWER UTILITY REVENUES - 2012 - 2013 ....................................................................... ............................... 7 6 PROPOSED REVENUES AND EXPENSES ............................................................................ ............................... 8 7 WASTEWATER SERVICE FEE ( MONTHLY) ...................................................................... ............................... 9 8 SEWER FEE (PER CCF SEWAGE GENERATION) ............................................................ .............................10 9 TREATMENT FEE (MONTHLY) ............................................................................................. .............................10 10 AVERAGE MONTHLY BILL COMPARISONS EAST OF SEPULVEDA BOULEVARD ..........................11 11 AVERAGE MONTHLY BILL COMPARISONS WEST OF SEPULVEDA BOULEVARD ........................11 2 R:EI Segundo, City oflES Sewer Rate Study (Aug 94) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 1. SUMMARY The sewer rate study update evaluated the recent expenditures and revenues of the City of El Segundo's sewer utility; developed a capital improvement and facility replacement program schedule; and formulated a funding method that will support the operation of the utility as a self supporting enterprise. The City of El Segundo's existing sewer rates were established in 2004. They have not changed in the last ten years. The existing rate structure has four components: • A Wastewater Service Fee is assessed to all sewer customers as a flat monthly fee. The amount of the fee varies according to customer class and the size of the customer's water meter. • A Sewer Fee that is assessed to all sewer customers based on sewage generation. The Sewer Fee rate varies according to customer class. • A Treatment Fee that is assessed to sewer customers west of Sepulveda Boulevard that defrays the cost of wastewater treatment provided by the City of Los Angeles at the Hyperion Plant. The Treatment Fee is assessed as a flat monthly fee based on customer class and the size of the customer's water meter. • An annual Quality Surcharge assessed on commercial and industrial customers based on quantity and strength of wastewater discharged. The City of El Segundo operates its sewer utility as a self sufficient enterprise. In order to continue this, the sewer utility will need to generate sufficient revenues to meet normal and emergency demands in accordance with federal and state requirements, fund its long term facility replacement and capital improvement program, and establish adequate retained earnings to respond to emergencies. It is proposed that the Wastewater Service Fee and Sewer Fee be increased 8% per year for the next five years. It is proposed that the Treatment Fee be increased in accordance with estimates supplied by the City of Los Angeles, since this cost is not in the control of El Segundo and should be passed through to the customers receiving service from the Hyperion Plant. This requires a 27.7% increase in 2014 -15, a 15.4% increase in 2015 -16, and a 6.7% increase in 2016 -17. The City of Los Angeles is projecting a potential decrease in costs in 2017 -18 and 2018 -19 due to reduced capital requirements at the Hyperion Plant. Consequently no Treatment Fee increase is recommended for those years. The proposed rate increase generates sufficient revenue to continue self sufficient operation of the sewer utility including facility replacement and planned capital improvements. The monthly sewer bill for the average residential customer with a 3/4" water meter east of Sepulveda Boulevard will increase 8% from $10.49 to $11.33. The monthly sewer bill for the average residential customer with a 3/4" water meter west of Sepulveda Boulevard will increase 18% from $21.07 to $24.84. This larger increase is due to increased treatment costs at the Hyperion Plant. 2. BACKGROUND The City of El Segundo's wastewater collection system west of Sepulveda Boulevard and north of El Segundo Boulevard consists of nine (9) separate drainage areas. Nine (9) of these areas include a sewer pump station. The sewage is either pumped to a neighboring drainage area where it can drain by gravity to the trunk sewers in Imperial Highway or it is pumped directly to the trunk sewers in Imperial Highway The wastewater flows west in these sewers to the Hyperion Outfall, which then conveys the flows directly to the Hyperion Treatment Plant. The City of El Segundo contracts with the City of Los Angeles for treatment of this wastewater at the Hyperion Plant. The cost of this treatment is passed through by the City of El Segundo to sewer customers west of Sepulveda Boulevard through a Treatment Fee on the bi- monthly bill. R:EI Segundo, City oAES Sewer Rate Study (Aug 14) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 East of Sepulveda Boulevard, the City land is within the Los Angeles County Sanitation District No. 5. The City sewers generally convey wastewater flows east to the LACSD trunk sewer in Aviation Boulevard. Sewer customers east of Sepulveda pay LACSD directly for wastewater treatment. These Wastewater treatment charges are assessed by LACSD on individual property tax bills. The City's existing wastewater collection system is made up of a network of gravity sewers and nine sewer pump stations. The gravity system consists of approximately 50 miles of pipe and over 1,000 maintenance access structures. The majority of the gravity sewers are constructed of vitrified clay pipe with sizes ranging from 6 -inch to 27 -inch in diameter. Approximately 68 percent of the gravity sewers are 8- inches in diameter and over 99 percent of pipes are made of vitrified clay. The sewer system was constructed over the years based on development needs. Approximately 42 percent of the sewers were built in the late 1920's. The second largest development period occurred in the 1950's. Approximately 27 percent of the City's sewers were built between 1950 and 1959. The City's wastewater system includes a total of nine pump stations. Eight of these pump stations (No.1, 2, 4, 5, 6, 7, 8, 9) are located west of Sepulveda Boulevard and ultimately contribute to the flow tributary to the City of Los Angeles Hyperion Treatment Plant. Pump Station No. 13 is located on Grand Avenue east of Sepulveda Boulevard. Its flow is tributary to the Los Angeles County Sanitation District No. 5 trunk sewer in Aviation Boulevard. The capital improvement program utilized in this study was developed based upon a review the Sewer Master Plan, field reviews of the system facilities, and staffs experience with the existing system. Table 1 shows the projects included in the capital improvement program through fiscal year 2018 -2019. Table 1- Sewer Capital Improvement Project Phasing .5. —EXISTING SEWER RATES AND CHARGES The City of El Segundo's existing sewer rates were established in 2004, and have not changed since. The existing rate structure has four components: A Wastewater Service Fee is assessed to all sewer customers as a flat monthly fee. The amount of the fee varies according to customer class and the size of the customer's water meter. The Current Wastewater Service fees are shown in Table 2. 4 R:EI Segundo, City of1ES Sewer Rate Study (Aug 14) 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Annual Sewer Main Improvement $ 1,000,000 $ 1,000,000 S 500,000 S 500,000 S 500,000 (Pump Station Maintenance $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 Pump Station #1 and #7 Upgrade $ 2,200,000 S S . $ . $ ILifeguard Pump and Force Main $ 450,000 $ $ . $ . $ (Pump Station Rehab and Force Main Replacement $ 150,000 $ 500,000 $ 100,000 $ 300,000 $ 300,000 AMR Meters $ 250,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 El Segundo Relief Sewer $ - $ 1,300,000 $ $ - $ Standard St. Sewer Upgrade $ $ $ 800,000 $ - $ Sewer Upgrade $ $ - $ . $ 400,000 $ 400,000 "Total Capital $ 4,,130,000 $ 3,180,000 $ 1,780,000 $ 1,580,000 $ 1,580,000 .5. —EXISTING SEWER RATES AND CHARGES The City of El Segundo's existing sewer rates were established in 2004, and have not changed since. The existing rate structure has four components: A Wastewater Service Fee is assessed to all sewer customers as a flat monthly fee. The amount of the fee varies according to customer class and the size of the customer's water meter. The Current Wastewater Service fees are shown in Table 2. 4 R:EI Segundo, City of1ES Sewer Rate Study (Aug 14) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 Table 2- Existing Wastewater Service Fees Wastewater service Fee Multi- family Residential Lifeline Single Family Residential 3/4' $ 7.19 3/4' $ 2.25 3/4' $ 4.49 1" $ 10.11 1" $ 2.25 1" $ 5.39 1.5 " $ 15.27 1,5 " $ 5.84 2" $ 33.69 2" $ 6.29 3" $ 116.80 4" $ 157.23 1.5" $ 31.45 1,5" $ 6" $ 471.68 Industrial (West) Industrial (East) Institutional 89.84 3/4" $ 4.49 '3/4" $ 4.94 3/4" $ 4.49 1" $ 5.39 1" $ 12.35 1 "' $ 6.29 1.5" $ 16.62 1,5" $ 22.46 1.5" $ 9.43 2" $ 49.41 2" $ 49.41 2" $ 13.48 3" $ 125.78 3" $ 202.15 3" $ 35.94 4" $ 179.69 4" $ 314.45 4" $ 44.92 6" $ 179.69 6" $ 853.52 6" $ 44.92 A Sewer Fee that is assessed to all sewer customers based on sewage generation. The Sewer Fee rate varies according to customer class. The current Sewer Fees are shown in Table 3. Table 3- Existing Sewer Fees Single Family Residential Commercial (West)_ 0.50 Multi- family Residential Commercial (East) 0.62 3/4' $ $ 4.94 1" 0.71 $ 4.94 1" Institutional $ 12.80 1.5" $ 31.45 1,5" $ 22.46 2" $ 89.84 2" $ 58.40 3" $ 125.78 3" $ 125.78 4" $ 202.15 4" $ 471.68 6" $ 516.60 A Sewer Fee that is assessed to all sewer customers based on sewage generation. The Sewer Fee rate varies according to customer class. The current Sewer Fees are shown in Table 3. Table 3- Existing Sewer Fees Single Family Residential $ 0.50 Multi- family Residential $ 0.62 Lifeline $ 0.25 Commercial $ 0.71 Industrial $ 0.71 Institutional $ 0.62 • A Treatment Fee that is assessed to sewer customers west of Sepulveda Boulevard that are tributary to the Hyperion Treatment Plant. The Treatment Fee is assessed as a flat monthly fee based on customer class and the size of the customer's water meter. The Treatment Fee defrays the cost of wastewater treatment provided by the City of Los Angeles at the Hyperion Plant. The current Treatment Fees are shown in Table 4. 5 R EI Segundo, City oflES Sewer Rate Study {Aug 94} CITY OF EL SEGUNDO Table 4- Existing Treatment Fees SEWER RATE STUDY 2014 Single Family Residential Multi- family Residential Lifeline 3/4' $ 10.58 3/4' $ 17.48 3/4' $ 5.29 1" $ 13.45 1" $ 24.49 1" $ 6.73 1.5" $ 14.55 1.5" $ 37.36 2" $ 15.45 2" $ 83.79 3" $ 284.80 4" $ 391.88 Commercial Industrial Institutional 3/4' $ 12.48 3/4" $ 10.35 3/4" $ 9.78 1" $ 31.15 1" $ 13.99 1" $ 15.49 1.5" $ 57.36 1.5" $ 40.42 1.5" $ 23.57 2" $ 151.21 2" $ 123.39 2" $ 35.74 3'" 1 $ 280.26 3" 1 $ 309.311311 $ 88.63 4" 1 $ 1,197.56 4" 1 $ 439.45 4" $ 104.95 6" 1 $ 1,197.56 6" 1 $ 439.45 6" 1 $ 104.95 • An annual Quality Surcharge assessed on commercial and industrial customers based on quantity and strength of wastewater discharged. The sewer utility's expenditures consist of salaries, benefits, administrative fees, supplies, utilities, repairs and maintenance, contracted services, and sewer capital improvements. The sewer utility expenditures, exclusive of depreciation, for 2012 -2013 were $2,448,459. 7. SEWER UTILITY REVENUES The sewer utility's revenues consist of interest, sales and service charges. Table 5 shows the sewer utility's revenues and expenses for 2012 -2013. Revenues were higher than the expenditures only due to the minimal amount of capital improvements implemented in Fiscal Year 2012 -2013. 6 R:EI Segundo, City of\ES Sewer Rate Study (Aug 14) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 Table 5 - Sewer Utility Revenues and Expenses - 2012 -2013 Fixed Expenses Personnel Services $ 729,714 Administrative Charges $ 154,596 Insurance and Claims $ 129,000 Subtotal -Fixed Expenses $ 1,013,310 Variable Expenses Materials and Supplies $ 81,955 Contractual Services $ 675,515 Repairs and Maintenance $ 677,679 Subtotal - Variable Expenses $ 1,435,149 Total Expense $ 2,448,459 Revenues Sales and Service Charges $ 3,514,765 Interest $ 9,401 Total revenues $ 3,524,166 The City of El Segundo desires to continue to operate its sewer utility as a self sufficient enterprise. In order to accomplish this, the sewer utility will operate the system to meet normal and emergency demands in accordance with federal and state requirements, fund its long term facility replacement and capital improvement program, and establish retained earnings to respond to emergencies. It is proposed that the Wastewater Service Fee and Sewer Fee be increased 8% per year for the next five years. It is proposed that the Treatment Fee be increased in accordance with estimates supplied by the City of Los Angeles, since this cost is not in the control of El Segundo and should be passed through to the customers receiving service from the Hyperion Plant. This requires a 27.7% increase in 2014 -15, a 15.4% increase in 2015 -16, and a 6.7% increase in 2016 -17. The large early year increases are necessary to offset increases in the City of Los Angeles' charges that have been imposed since the last time El Segundo raised its Treatment Fee. The City of Los Angeles is projecting a potential decrease in costs in 2017 -18 and 2018 -19 due to reduced capital requirements at the Hyperion Plant. Consequently no Treatment Fee increase is recommended at this time for those years. The proposed rate increase generates sufficient revenue to continue self sufficient operation of the sewer utility including facility replacement and planned capital improvements. Table 6 shows the Wastewater Service Fee, and Table 7 illustrates the per CCF Sewer Fee. Table 8 shows the recommended Treatment Fee. R:EI Segundo, City ofiES Sewer Rate Study (Aug 14) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 Table 6 - Proposed Revenues and Expenses Expenses 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Fixed Expenses Personnel Services $ 873,749 $ 899,961 $ 926,960 $ 954,769 $ 983,412 Administrative Charges S 159,238 $ 164,015 $ 168,936 $ 174,004 $ 179,224 Insurance and Claims $ 236,,900 S 244.007 S 251.327 S 258,867 S 266,633 Subtotal -Fixed Expenses $ 1,269,887 $ 1,307,984 $ 1,347,223 $ 1,387,640 $ 1,429,269 5 • $ $ $ $ Variable Expenses S 5 S S S Utilities $ 66,950 $ 68,959 $ 71,027 $ 73,158 $ 75,353 Materials and Supplies $ 100,734 $ 103,756 $ 106,869 $ 110,075 $ 113,377 Contractual Services -Other S 393,023 $ 404,814 $ 416,958 $ 429,467 S 442,351 Contractual Services - Hyperion $ 1,.293,800 $ 1,494.600 $ 1,567,400 $ 1,564,600 5 1.207.000 Repairs and Maintenance $ 84,563 $ 87,100 $ 89,713 $ 92,404 $ 95,176 Subtotal - Variable Expenses $ 1,730,297 $ 1,782,206 $ 1,835,672 $ 1,890,742 $ 1,947,465 - Total Expense $ 3,000,184 $ 3,090,190 $ 3,182,895 $ 3,278,382 $ 3,376,734 Capital $ $ S $ $ Annual Sewer Main Improvement S 1,000.000 $ 1,000,000 5 500,000 S 500,000 S 500.000 Pump Station Maintenance $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 Pump Station #1 and #7 Upgrade S 2,200,000 $ $ $ - $ Lifeguard Pump and Force Main $ 450,000 $ $ $ - $ Pump Station Rehab and Force Main Replacement $ 150,000 $ 500,000 $ 100,000 $ 300,000 $ 300,000 AMR Meters S 250,000 S 300,000 S 300,000 $ 300,000 S 300,000 El Segundo Relief Sewer $ $ 1,300,000 $ $ - $ Standard St. Sewer Upgrade $ $ - $ 800,000 $ $ - Sewer Upgrade S S - S - S 400.000 S 400,000 'Total Capital $ 4,130,000 $ 3,180,000 $ 1,780,000 $ 1,580,000 $ 1,580,000 Total Expenditure S 7,130,184 $ 6,270,190 $ 4,962,895 $ 4,858,382 $ 4,956,734 $ $ 5 S S Revenues $ - $ $ - $ - $ - Wastwater Service Fee $ 967,443 $ 1,044,839 $ 1,128,426 $ 1,218,700 $ 1,316,196 Sewer Charge $ 1,290,137 $ 1,393,348 $ 1,504,815 S 1.625,201 S 1.755,217 Treatment Char e $ 1,300,000 $ 1,500,000 $ 1,600,000 $ 1,600,000 $ 1,600,000 Guality Surcharge $ 249,965 $ 249,965 $ 249,965 S 249,965 $ 24.9,965 Miscelaneous Revenue $ $ - $ - 5 - $ Interest $ 9,974 $ 10,273 $ 10,581 $ 10,898 $ 11,225 Total revenues 5 3,817,519 S 4,198,424 5 4,493,787 5 4,704,764 $ 4,932,603 $ $ - 5 - $ $ Annual Retained Earnings $ (3,312,665 )1 $ (2,071,765) $ (469,108) $ (153,618) $ (24,130) Cummulative Retained Earnings 1 $ 4,428,2291 S 2,356,463 1 $ 1,887,356 5 1,733,738 1 5 1,709,607 R:EI Segundo, City of\ES Sewer Rate Study (Aug 14) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 Table 7 - Wastewater Service Fee (Monthly) R:EI Segundo, City oflES Sewer Rate Study (Aug 14) 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Single Family Residential 3/4' $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 11' $ 5.82 $ 6.29 $ 6.79 $ 7.33 $ 7.92 1.5" $ 6.31 $ 6.81 $ 7.36 $ 7.95 $ 8.58 2" $ 6.79 $ 7.34 $ 7.92 $ 8.56 $ 9.24 Multi- family Residential 3/4' $ 7.77 $ 8.39 $ 9.06 $ 9.78 $ 10.56 1" $ 10.92 $ 11.79 $ 12.74 $ 13.75 $ 14.85 1.5" $ 16.49 $ 17.81 $ 19.24 $ 20.77 $ 22.44 2" $ 36.39 $ 39.30 $ 42.44 $ 45.83 $ 49.50 3" $ 126.14 $ 136.24 $ 147.13 $ 158.91 $ 171.62 4" $ 169.81 $ 183.39 $ 198.06 $ 213.91 $ 231.02 Lifeline 3/4' $ 2.43 $ 2.62 $ 2.83 $ 3.06 $ 3.31 1" $ 2.43 $ 2.62 $ 2.83 $ 3.06 $ 3.31 Commercial (West) 3/4' $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1'" $ 13.82 $ 14.93 $ 16.12 $ 17.41 $ 18.81 1.5" $ 24.26 $ 26.20 $ 28.29 $ 30.56 $ 33.00 2" $ 63.07 $ 68.12 $ 73.57 $ 79.45 $ 85.81 3" $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 .4" $ 509.41 $ 550.17 $ 594.18 1 $ 641.72 $ 693.05 -6" $ 509.41 $ 550.17 $ 594.18 $ 641.72 $ 693.05 Commercial (East) 1" $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1.5 "' $ 33.97 $ 36.68 $ 39.62 $ 42.79 $ 46.21 2" $ 97.03 $ 104.79 $ 113.17 $ 122.23 $ 132.00 3" $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 4" $ 218.32 $ 235.79 $ 254.65 $ 275.02 $ 297.02 6" j $ 557.93 1 $ 602.56 1 $ 650.77 1 $ 702.83 $ 759.05 Industrial (West) 3/4" $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 1"' $ 5.82 $ 6.29 $ 6.79 $ 7.33 $ 7.92 1.5" $ 17.95 $ 19.39 $ 20.94 $ 22.61 $ 24.42 2" $ 53.36 $ 57.63 $ 62.24 $ 67.22 $ 72.60 3" $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 4" $ 194.07 $ 209.59 $ 226.36 $ 244.47 5 264.02 6" $ 194.07 $ 209.59 $ 226.36 $ 244.47 $ 264.02 Industrial (East) 3/4" $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1" $ 13.34 $ 14.41 $ 15.56 $ 16.80 $ 18.15 1,5" $ 24.26 $ 26.20 $ 28.29 $ 30.56 $ 33.00 2 " $ 53.36 $ 57.63 $ 62.24 $ 67.22 $ 72.60 3" $ 218.32 $ 235.79 $ 254.65 $ 275.02 $ 297.02 4" $ 339.61 $ 366.77 $ 396.12 $ 427.81 $ 462.03 6" $ 921.80 $ 995.55 $ 1,075.19 $ 1,161.20 $ 1,254.10 Institutional 3/4" $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 1"' $ 6.79 $ 7.34 $ 7.92 $ 8.56 $ 9.24 1.5" $ 10.18 $ 11.00 $ 11.88 $ 12.83 $ 13.86 2" $ 14.56 $ 15.72 $ 16.98 $ 18.34 $ 19.81 3" $ 38.82 $ 41.92 $ 45.27 $ 48.90 $ 52.81 4" $ 48.51 $ 52.39 $ 56.59 $ 61.11 $ 66.00 .6" $ 48.51 1 $ 52.39 $ 56.59 $ 61.11 $ 66.00 R:EI Segundo, City oflES Sewer Rate Study (Aug 14) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 Table 8: Sewer Fee (per CCF sewage generation) Table 9: Treatment Fee (Monthly) 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Single Family Residential $ 0.54 $ 0.58 $ 0.63 $ 0.68 $ 0.73 Multi- family Residential $ 0.67 $ 0.72 $ 0.78 $ 0.84 $ 0.91 Lifeline $ 0.27 $ 0.29 $ 0.31 $ 0.34 $ 0.37 Commercial $ 0.77 $ 0.83 $ 0.89 $ 0.97 $ 1.04 Industrial $ 0.77 $ 0.83 $ 0.89 $ 0.97 $ 1.04 Institutional $ 0.67 $ 0.72 $ 0.78 $ 0.84 $ 0.91 Table 9: Treatment Fee (Monthly) 10 R:EI Segundo, City oflES Sewer Rate Study (Aug 14) 2014-15__t_ 2015 -16 1 2016 -17 2017 -18 2018 -19 Single Family Residential 3/4' $ 13.51 $ 15.59 $ 16.63 $ 16.63 $ 16.63 1" $ 17.18 $ 19.82 $ 21.15 $ 21.15 $ 21.15 $ 18.59 $ 21.45 $ 22.87 $ 22.87 $ 22.87 2" $ 19.74 $ 22.77 $ 24.29 $ 24.29 $ 24.29 Multi- family Residential 3/4' $ 22.33 $ 25.76 $ 27.48 $ 27.48 $ 27.48 1" $ 31.28 $ 36.10 $ 38.50 $ 38.50 $ 38.50 1.5 " $ 47.72 $ 55.07 $ 58.74 $ 58.74 $ 58.74 2" $ 107.03 $ 123.50 $ 131.73 $ 131.73 $ 131.73 3" $ 363.80 $ 419.77 $ 447.75 $ 447.75 $ 447.75 4" $ 500.58 $ 577.59 $ 616.10 $ 616.10 $ 616.10 Lifeline 3/4' $ 6.76 $ 7.80 $ 8.32 $ 8.32 $ 8.32 V. $ 8.60 $ 9.92 $ 10.58 $ 10.58 $ 10.58 Commercial 3/4' $ 15.94 $ 18.39 $ 19.62 $ 19.62 $ 19.62 1"' $ 39.79 $ 45.91 $ 48.97 $ 48.97 $ 48.97 1.5" $ 73.27 $ 84.54 $ 90.18 $ 90.18 $ 90.18 2 " $ 193.15 $ 222.87 $ 237.73 $ 237.73 $ 237.73 3" $ 358.001 $ 413.08 1 $ 440.61 1 $ 440.61 1 $ 440.61 4" $ 1,529.74 $ 1,765.09 $ 1,882.76 $ 1,882.76 $ 1,882.76 6" $ 1,529.74 $ 1,765.09 $ 1,882.76 $ 1,882.76 $ 1,882.76 Industrial 3/4" $ 13.22 $ 15.25 $ 16.27 $ 16.27 $ 16.27 1" $ 17.87 $ 20.62 $ 21.99 $ 21.99 $ 21.99 1.5" $ 51.63 $ 59.58 $ 63.55 $ 63.55 $ 63.55 2" $ 157.62 $ 181.87 $ 193.99 $ 193.99 $ 193.99 3" $ 395.11 $ 455.89 $ 486.29 $ 486.29 $ 486.29 4" $ 561.35 $ 647.71 $ 690.89 $ 690.89 $ 690.89 6" $ 561.35 $ 647.71 $ 690.89.1..$ 690.89 $ 690.89 Institutional 3/4 'q $ 12.49 $ 14.41 $ 15.38 $ 15.38 $ 15.38 1" $ 19.79 $ 22.83 $ 24.35 $ 24.35 $ 24.35 1.5" $ 30.11 $ 34.74 $ 37.06 $ 37.06 $ 37.06 2" $ 45.65 $ 52.68 $ 56.19 $ 56.19 $ 56.19 3" $ 113.21 $ 130.63 $ 139.34 $ 139.34 $ 139.34 4"" $ 134.06 $ 154.69 $ 165.00 $ 165.00 $ 165.00 61' $ 134.06 $ 154.69 $ 165.00 $ 165.00 $ 165.00 10 R:EI Segundo, City oflES Sewer Rate Study (Aug 14) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 The monthly sewer bill for the average residential customer with a 3/4" water meter east of Sepulveda Boulevard will increase 8% from $10.49 to $11.33. The monthly sewer bill for the average residential customer with a 3/4" water meter west of Sepulveda Boulevard will increase 18% from $21.07 to $24.84. This larger increase is due to increased treatment costs at the Hyperion Plant. Tables 10 and 11 show the average monthly sewer bills for residential customers with 5/8" x 3/4" and 1" meters based on existing rates for Fiscal Year 2013 -2014, 2014 -2015, and on the proposed rates for 2014 -2015 These meter sizes serve approximately 77% of the City of El Segundo's sewer customers. Table 10 - Average Monthly Bill Comparisons East of Sepulveda Boulevard Table 11 - Average Monthly Bill Comparisons West of Sepulveda Boulevard Existing 2013 -2014 Proposed 2014 -2015 Meter Size Avg. Monthly Water Use Wastewater Service Fee Sewer Fee Total Monthly Bill Wastewater Service Fee Sewer Fee Total Monthly Bill Treatment Fee Total Monthly Bill 5/8 "X3/4" 12 $ 4.49 $ 6.00 $ 10.49 $ 4.85 1 $ 6.48 $ 11.33 1" 18 $ 5.39 j $ 9.00 1 $ 14.39 $ 5.82 $ 9.72 $ 15.54 Table 11 - Average Monthly Bill Comparisons West of Sepulveda Boulevard As noted above, the total monthly sewer service bill of an average single family residential customer west of Sepulveda Boulevard with a monthly water use of 12 units (1,200 cubic feet, or 8,976 gallons) is currently $21.07. This monthly bill will increase to $24.84 with the recommended rates. El Segundo customers east of Sepulveda pay for sewage treatment directly to Los Angeles County Sanitation District the equivalent of $11.75 per month through their property tax bills. This is scheduled to increase to $12.18 in 2015. This brings their total cost of sewer service to $23.51. A survey was conducted of neighboring cities that levy sewer charges. The monthly bill for El Segundo customers is lower than for the customers of Beverly Hills ($43.69), Culver City (33.12), Redondo Beach ($26.78); Manhattan Beach ($36.89), and Santa Monica ($44.45). Customers in Torrance ($15.76) and Inglewood ($19.25) have lower total monthly sewer bills than El Segundo. Torrance currently has a minimal capital improvement program and operates its sewer utility at an annual deficit. Inglewood is also operating its sewer utility at a considerable loss. In both cases, the annual deficits are funded from accumulated balances in their respective sewer funds. 11 R:EI Segundo, City of\ES Sewer Rate Study (Aug 14) Existing 2013 -2014 Proposed 2014 -15 Meter Size Avg. Monthly Water Use Wastewater Service Fee Sewer Fee Treatment Fee Total Monthly Bill Wastewater Service Fee Sewer Fee Treatment Fee Total Monthly Bill 5/8 "X314" 12 $ 4.49 $ 6.00 $ 10.58 $ 21.07 $ 4.85 $ 6.48 $ 13.51 $ 24.84 1" 18 $ 5.39 $ 9.00 $ 13.45 $ 27.84 $ 5.82 $ 9.72 $ 17.18 $ 32.72 As noted above, the total monthly sewer service bill of an average single family residential customer west of Sepulveda Boulevard with a monthly water use of 12 units (1,200 cubic feet, or 8,976 gallons) is currently $21.07. This monthly bill will increase to $24.84 with the recommended rates. El Segundo customers east of Sepulveda pay for sewage treatment directly to Los Angeles County Sanitation District the equivalent of $11.75 per month through their property tax bills. This is scheduled to increase to $12.18 in 2015. This brings their total cost of sewer service to $23.51. A survey was conducted of neighboring cities that levy sewer charges. The monthly bill for El Segundo customers is lower than for the customers of Beverly Hills ($43.69), Culver City (33.12), Redondo Beach ($26.78); Manhattan Beach ($36.89), and Santa Monica ($44.45). Customers in Torrance ($15.76) and Inglewood ($19.25) have lower total monthly sewer bills than El Segundo. Torrance currently has a minimal capital improvement program and operates its sewer utility at an annual deficit. Inglewood is also operating its sewer utility at a considerable loss. In both cases, the annual deficits are funded from accumulated balances in their respective sewer funds. 11 R:EI Segundo, City of\ES Sewer Rate Study (Aug 14) CITY OF EL SEGUNDO SEWER RATE STUDY 2014 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 Figure 1- Comparison of Monthly Sewer Bills to Other Agencies Total Monthly Cost of Sewer Service �n A O f6 U U 0 O O U 0 v M o w M m ca (D > m -(D m a o 000 0C a`> M m m 0 aa)) U c ~ 0)n Q m 0 a) a) a) °) d m to U) 0 U) W W 12 R:EI Segundo, City oflES Sewer Rate Study (Aug 14) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO ESTABLISHING PROCEDURES FOR INCREASING WATER, WASTEWATER, AND SOLID WASTE FEES IN ACCORDANCE WITH THE REQUIREMENTS OF PROPOSITION 218. The City Council for the City of El Segundo does resolve as follows: SECTION 1: The City Council finds and declares as follows: A. On July 24, 2006, the California Supreme Court confirmed that charges for water and wastewater services are subject to Proposition 218 procedures (Bighorn - Desert View Water Agency v. Verjil (2006) 39 Cal.4th 205); B. The City Council anticipates that there will be future increases in water, wastewater, and solid waste rates. Adopting the policies and procedures set forth in this Resolution will help implement the requirements set forth in Article XIIID of the California Constitution and help ensure that the rights of those persons that are authorized to protest service charges are preserved; C. Elections Code § 4000(c)(9) provides that any protest ballot proceeding required or authorized by California Constitution Articles XIIIC or XIIID may be conducted wholly by mail. In the event a protest ballot process is required, the City Council seeks to achieve higher awareness of those affected by the proposed increase, provide an orderly protest process for both those receiving the ballots and the City, ensure to the extent practicable that there is some verification process regarding the protests received, and to reduce the costs of the protest ballot process; and D. Adopting this Resolution is in the public interest for the reasons set forth above and as further stated within Article XIIID and the Proposition 218 and state legislation relating to the implementation of Proposition 218. SECTION 2: The City Council adopts the procedures set forth in this Resolution for conducting all proceedings required by California Constitution Article XIIID for utility fee (as defined below) increases. Where no specific procedures are imposed by Article XIIID or the Proposition 218 Omnibus Implementation Act (Government Code §§ 53750, et seq.), the procedures set forth in this Resolution apply. This Resolution may be referred to as the "Proposition 218 Protest Proceedings Resolution." SECTION 3: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this Resolution. Words and phrases not defined by this Resolution will have the Page 1 of 6 meaning set forth in California Constitution Article XIIID or the Proposition 218 Omnibus Implementation Act. A. "Act" means the Proposition 218 Omnibus Implementation Act found at Government Code §§ 53750, et seq.; B. "Article 131)" means California Constitution Article XIIID, § 6; C. "Manager" means the City Manager or designee; D. "Property owner" has the same meaning set forth in Article 13D and also pursuant to the Act includes tenancies of real property where tenants are directly liable to pay the proposed water or wastewater fee or charge; E. "Protest" means a written protest filed with the City Clerk in accordance with Article 13D, the Act, and this Resolution as described in Article 13D, § 6(a)(2); F. "Utility fee" means a fee or charge imposed for potable water, wastewater, or solid waste services provided to customers in accordance with the El Segundo Municipal Code ( "ESMC "), and other applicable law, by the City of El Segundo. SECTION 4: Calculation of the fee and proposed increase. Utility fees must be calculated in accordance with the recommendations in the latest independent Rate Study report or City's internal financial analysis. SECTION 5: Administration of Proceedings. The City Manager, or designee, is authorized to implement this Resolution in a manner consistent with the California Constitution and other applicable law. SECTION 6: Notice. Notice of a proposed utility fee increase is provided as follows: A. In general, the City will identify the record property owner(s) of each parcel to which the utility fee would be applied from it's billing system database and /or the latest equalized tax roll produced by Los Angeles County. The City's Utility Billing database and the equalized tax roll is presumptive evidence of ownership of the land for voting purposes. B. If either the City's Utility Billing Database or Los Angeles County Recorder's website shows that more than one property owner has an interest in a parcel, all property owners (each property owner) must receive notice at the address shown for the property owner. Both property owners and parties financially responsible for paying the fee will be provided notice. In the event that notice is sent for a utility service for which the City is not currently charging a fee, the notices will be sent to Page 2 of 6 the property owner based upon the Los Angeles County Recorder's website and to the street address to which the service would be provided if the address is different than the address designated for the property owner on the Los Angeles County Recorder's website. C. The notice must be sent by first class mail at least forty -five (45) days before the date set for the public hearing on the utility fee. D. The form of the notice of hearing will be approved by the City Council and be on file with the City Clerk. E. The notice provided by these procedures, in accordance with Article 13D, supersedes and is in lieu of notice required by any other statutes to levy or increase a utility fee. F. The City Clerk, or designee, may certify the proper mailing of notices by an affidavit which constitutes conclusive proof of mailing in the absence of fraud. G. Failure of any person to receive notice does not invalidate the proceedings. SECTION 7: Protests against Utility Fee Increases. A. The property owner(s) of parcels subject to the proposed fee increase are entitled to a single protest for each parcel. When a parcel is held as community property or in joint tenancy or as a tenancy in common, any spouse or joint tenant or tenant in common is presumed to have authority to cast a protest on behalf of such parcel. & Executors, administrators, and guardians may cast a protest on behalf of the estate represented by them. If such representatives are shown on the latest assessment roll as paying taxes and assessments on behalf of the property owner(s), that fact establishes the right of such representative(s) to cast a protest. If such representatives are not shown on the latest assessment roll, the representatives may file with the City Clerk, at any time before the commencement of the public hearing, or the date of the election, as the case may be, certified copies of the written documentation establishing the legal representation. C. The protest of any public or quasi - public corporation, private corporation, or unincorporated association may be signed by any person so authorized in writing by the board of directors or trustees or other managing body thereof. D. The Manager is designated as the voting representative with respect to City -owned property. Page 3 of 6 E. In any case where the documentation provided to the City Clerk in is ambiguous or unclear, the City Attorney will determine whether the documentation is adequate for the purpose provided. F. In the event a property owner loses or misplaces a protest ballot, upon request by the property owner the City will provide a replacement protest ballot unless a properly filled out protest ballot has already been received for the parcel of property. SECTION 8 :. Public Hearing. A. Only protest ballots that (i) were provided by the City to the property owner in the form approved by the Council and (ii) are properly filled out and legibly signed by an eligible property owner is made will be counted as a valid protest. Only one protest shall be counted for each parcel of property regardless of the number of protests filed by property owners for the parcel. B. The City Clerk must stamp each written protest the date and time it is filed with the City Clerk for purposes of establishing whether the protest was filed before the close of the public testimony portion of the public hearing. No protest received after the close of the public testimony portion of the public hearing can be counted in determining the amount of protest, but the Council may, in its discretion, consider such protests in making its decision. Written protests may be withdrawn in writing at any time before the conclusion of the public testimony portion of the public hearing. C. At the time and place fixed for the hearing, or at any time to which the hearing is adjourned, the Council must: Hear all persons interested in the matter of the proposed fee increase; 2. Hear all objections, protests or other written communications from any owner of property subject to the proposed utility fee; and Take and receive oral and documentary evidence pertaining to the proposed fee increase. 4. The hearing may be continued from time to time, as the Council determines necessary to complete its consideration of the proposed fee increase. 5. If the Council determines, at the close of the public testimony portion of the public hearing, that votes were received from Page 4 of 6 property owners representing a majority of the parcels subject to the proposed fee increase, the Council shall adopt a resolution setting forth the results of the protest ballot process and the proceedings shall then be closed and the utility fee cannot be approved by the City Council. 6. If the Council determines at the close of the public testimony portion of the public hearing that written protests were not received from property owners representing a majority of the parcels subject to the proposed utility fee, the Council shall adopt a resolution setting forth the results of the protest ballot process and then may by Ordinance change the utility fee so long as in an amount that does exceed the amount and methodology set forth in the public notices sent to the property owners. SECTION 9: Environmental Review. This Resolution is exempt from review under the California Environmental Quality Act (California Public Resources Code § § 21000, et seq., "CEQA ") and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) because it establishes rules and procedures to implement government funding mechanisms; does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Resolution does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4 -5)). SECTION 10: If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the city council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable. SECTION 11: The City Clerk is directed to certify the passage and adoption of this Resolution; and cause it to be entered into the City of El Segundo's book of original Resolutions. SECTION 12: This Resolution will take effect immediately day following its final passage and adoption. Page 5 of 6 PASSED AND ADOPTED this day of , 2014. ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM MARK D. HENSLEY, City Attorney Karl H. Berger, Assistant City Attorney Page 6 of 6 Suzanne Fuentes, Mayor October 2, 2014 IMPORTANT NOTICE TO PARCEL OWNERS REGARDING PROPOSED INCREASES IN WATER RATE CHARGES AND SEWER RATE CHARGES AND NOTICE OF PUBLIC HEARING ON November 18, 2014 Dear City of El Segundo Property Owner /Water Customer: TAKE NOTICE that on November 18, 2014, at 7:30 pm., the City Council will conduct a Public Hearing at the City Council Chambers, 350 Main Street, El Segundo, California to consider proposed water service rate increases associated with providing water services and wastewater collection service rate increases to property located in the City of El Segundo. Increases are proposed to pay for increases in the City's costs to acquire water from other agencies, to provide water and services to properties located within the City, to provide for treatment and discharge of wastewater generated by those properties, and to meet the regulatory obligations imposed by the State of California Department of Public Health (DPH) and the U.S. Environmental Protection Agency (EPA). A recently completed water rate study proposed a multi -year rate schedule to adjust water rates in an effort to offset the City's cost of providing these services. The FY 2014 -2015 increase is proposed to be implemented on January 1, 2015. FY 2015 -2016, FY 2016 -2017, FY 2017 -2018, FY 2018 -2019, rate increases are proposed for implementation on the first of July and January of each subsequent year due to how annual rate increases are passed through from the Metropolitan Water District and West Basin Municipal Water District. Complete copies of the water study, entitled "City of El Segundo Water Rate Study 2014" dated September 2014 are available at City of El Segundo City Hall, 350 Main Street in the City Clerk's office. A recently completed sewer rate study proposed a multi -year rate schedule to adjust sewer rates in an effort to offset the City's cost of providing wastewater collection and treatment services. The FY 2014 -2015 increase is proposed to be implemented on January 1, 2015. FY 2015 -2016, FY 2016- 2017, FY 2017 -2018, FY 2018 -2019, rate increases are proposed for implementation on the first of January of each subsequent year. Complete copies of the water study, entitled "City of El Segundo Sewer Rate Study 2014" dated September 2014 are available at City of El Segundo City Hall, 350 Main Street in the City Clerk's office. The proposed new rates are provided on the enclosed "Schedule of Proposed Service Charge Increases for Potable Water" and "Schedule of Proposed Service Charge Increases for Wastewater Collection." Review these to determine how your specific parcel would be affected. Customers are encouraged to review water and sewer use history found on prior utility bills. Charges are based upon a combination of meter size and actual usage. If you have any questions on the proposed increase please call (310) 524 -2368 for assistance. Any adjustment shown, if enacted, will take effect no earlier than January 2015. IMPORTANT INFORMATION: If you oppose an increase to your water service charges or sewer collection charges and wish to protest these actions, you must do so in writing before the close of the public hearing on November 18, 2015. If you do not oppose the proposed increases, no response is necessary. A majority protest exists if, at the end of the Public Hearing, there are valid written protests submitted by owners of a majority of the properties subject to the fee increases. A majority protest will result in the fee increase not being imposed. Note that no more than one protest per parcel may be submitted. If you want more information, please contact the City's Water Division Engineer at (310) 524 -2368. Provided is a WATER RATE INCREASE PROTEST BALLOT. If you wish to protest implementation of the multi -year water rate increases, you should 1) check the box on the ballot indicating that you protest the proposed service charge increases, 2) print and sign your name on the lines provided, 3) cut or tear off the form where indicated, 4) deliver the signed form to the City Clerk before the close of the public hearing on November 18, 2018 by one of the following methods: U.S. mail addressed to City Clerk/Water Rates, City of El Segundo, 350 Main Street, El Segundo, CA 90245 or hand deliver to the City Clerk's office at the same address Use separate envelopes for water and sewer rate increase protest ballots WATER RATE INCREASE PROTEST BALLOT [BAR CODE HERE] ❑ I rn otest the proposed water service charge increases for FY 2014 -2015 through 2018 -2019. Print Legibly — Full Name I own the property at I am a water customer at Signature Address Address Return to: City Clerk/Water Rates, City of El Segundo, 350 Main Street, El Segundo CA 90245 before close of the public hearing to be conducted by the City Council on November 18, 2014 ------------- - - - - -- cut------------ - - - - -- cut-------------- - - - - -- cut---------------- - - - - -- cut------------ - - - - -- Provided is a SEWER RATE INCREASE PROTEST BALLOT. If you wish to protest implementation of the multi -year sewer rate increases, you should 1) check the box on the ballot indicating that you protest the proposed service charge increases, 2) print and sign your name on the lines provided, 3) cut or tear off the form where indicated, 4) deliver the signed form to the City Clerk before the close of the public hearing on November 18, 2018 by one of the following methods: U.S. mail addressed to City Clerk/Water Rates, City of El Segundo, 350 Main Street, El Segundo, CA 90245 or hand deliver to the City Clerk's office at the same address Use separate envelopes for water and sewer rate increase protest ballots SEWER RATE INCREASE PROTEST BALLOT [BAR CODE HERE] [] I rp otest the proposed sewer service charge increases for FY 2014 -2015 through 2018 -2019. Print Legibly — Full Name Signature I own the property at Address I am a water customer at Address Return to: City Clerk/Water Rates, City of El Segundo, 350 Main Street, El Segundo CA 90245 before close of the public hearing to be conducted by the City Council on November 18, 2014 ------------- - - - - -- cut------------ - - - - -- cut-------------- - - - - -- cut---------------- - - - - -- cut------------ - - - - -- City of El Segundo Schedule of Propose Service Charge Increases for Potable Water Capacity Charges (Monthly) Meter Size October 2014 ju!Z 2015 ul 2016 July 2019 lul 2017 July 2018 July 2019 5/8" x 3/4" and 3/4" $ 9.36 $ 9.83 $ 10.32 $ 10.84 $ 11.38 $ 11.95 5/8" x 3/4" and 3/4" Lifeline $ 4.68 $ 4.92 $ 5.16 $ 5.42 $ 5.69 $ 5.98 1" $ 21.23 $ 22.29 $ 23.41 $ 24.58 $ 25.81 $ 27.10 1" Lifeline $ 10.62 $ 11.15 $ 11.70 $ 12.29 $ 12.90 $ 13.55 2 " $ 49.29 $ 51.75 $ 54.34 $ 57.06 $ 59.91 $ 62.90 3"" $ 110.95 $ 116.50 $ 122.33 $ 128.44 $ 134.86 $ 141.61 4" $ 196.86 $ 206.71 $ 217.04 $ 227.90 $ 239.29 $ 251.25 6 " $ 368.06 $ 386.46 $ 405.78 $ 426.07 $ 447.37 $ 469.74 8" $ 645.23 $ 677.49 $ 711.36 $ 746.93 $ 784.28 $ 823.49 101" $ 1,009.46 $ 1,059.93 $ 1,112.93 $ 1,168.58 $ 1,227.00 $ 1,288.35 12" $ 1,453.48 $ 1,526.16 $ 1,602.47 $ 1,682.59 $ 1,766.72 $ 1,855.05 16" $ 2,580.90 $ 2,709.95 $ 2,845.44 $ 2,987.71 $ 3,137.10 $ 3,293.96 20" $ 4,030.92 $ 4,232.46 $ 4,444.09 $ 4,666.29 $ 4,899.61 $ 5,144.59 Fire Service Charges (Monthly) Meter Size October 2014 July 2015 July 2016 jyly 2017 July 2018 July 2019 2" $ 46.07 $ 48.37 $ 50.79 $ 53.33 $ 56.00 $ 58.80 3" $ 70.32 $ 73.84 $ 77.53 $ 81.40 $ 85.47 $ 89.75 4" $ 94.58 $ 99.31 $ 104.27 $ 109.49 $ 114.96 $ 120.71 6" $ 143.08 $ 150.23 $ 157.75 $ 165.63 $ 173.91 $ 182.61 101" $ 240.10 $ 252.11 $ 264.71 $ 277.95 $ 291.84 $ 306.44 Option 1 *: Monthly Consumption Charges per 100 ft3 Tier Range 2015 2016 2017 2018 2019 1 0 -5 $ 2.1011 $ 2.2272 $ 2.3608 $ 2.5024 $ 2.6526 1- Lifeline 0 -5 $ 1.0507 $ 1.1137 $ 1.1806 $ 1.2514 $ 1.3265 2 5 -10 $ 2.8242 $ 2.9937 $ 3.1733 $ 3.3637 $ 3.5655 2- Lifeline 5 -10 $ 1.4122 $ 1.4969 $ 1.5867 $ 1.6820 $ 1.7829 3 10 -15 $ 3.5470 $ 3.7598 $ 3.9854 $ 4.2245 $ 4.4780 4 15 -20 $ 4.2698 $ 4.5260 $ 4.7975 $ 5.0854 $ 5.3905 5 20 -30 $ 3.4670 $ 3.6750 $ 3.8955 $ 4.1293 $ 4.3770 6 30 -50 $ 3.6145 $ 3.8314 $ 4.0613 $ 4.3049 $ 4.5632 7 50 -100 $ 3.7528 $ 3.9780 $ 4.2166 $ 4.4696 $ 4.7378 8 100+ $ 3.8314 $ 4.0613 $ 4.3050 1 $ 4.5633 $ 4.8371 Option 2 *: Monthly Single Family Residence Consumption Charges per 100 ft3 New Tiers Range July 2016 2015 July 2018 2016 $ 0.7894 2017 $ 0.8703 2018 $ 0.9595 2019 1 0 -10 $ 2.3200 $ 2.4360 $ 2.5578 $ 2.6857 $ 2.8200 1- Lifeline 0 -10 $ 1.1600 $ 1.2180 $ 1.2789 $ 1.3428 $ 1.4100 2 10 -20 $ 4.2698 $ 4.4833 $ 4.7075 $ 4.9428 $ 5.1900 3 20 -50 1 $ 4.8500 1 $ 5.0925 $ 5.3471 $ 5.6145 $ 5.8952 4 50+ $ 4.2698 1 $ 4.4833 $ 4.7075 $ 4.9428 $ 5.1900 Option 2 *: Monthly Multi Family and Non- Residential Consumption Charges per 100 ft3 New Tiers Range July 2016 2015 July 2018 2016 $ 0.7894 2017 $ 0.8703 2018 $ 0.9595 2019 1 0 -10 $ 2.8242 $ 2.9654 $ 3.1137 $ 3.2694 $ 3.4328 2 10 -20 $ 3.4500 $ 3.6225 $ 3.8036 $ 3.9938 $ 4.1935 3 1 20 -50 1 $ 3.6500 1 $ 3.8325 $ 4.0241 $ 4.2253 $ 4.4366 4 50+ 1 $ 3.8314 1 $ 4.0230 $ 4.2241 $ 4.4353 $ 4.6571 Recycled Water Sur cbarge per 100 ft3* July 2014 July 2015 July 2016 Jul 2017 July 2018 4u12 $ 0.7894 $ 0.8289 $ 0.8703 $ 0.9138 $ 0.9595 * If the Metropolitan Water District and /or West Basin Municipal Water District increase rates beyond the annual percentage increase identified in the above tables, then the City's annual water rates will also increase by the same percent. City of El Segundo Schedule of Propose Service Charge Increases for Wastewater Collection Monthly Wastewater Service Fees 2014 -15 2015 -16 2016 -17 12017 -18 2018 -19 Single Family Residential 3/4' $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 1" $ 5.82 $ 6.29 $ 6.79 $ 7.33 $ 7.92 1.5`" $ 6.31 $ 6.81 $ 7.36 $ 7.95 $ 8.58 2'" $ 6.79 $ 7.34 $ 7.92 $ 8.56 $ 9.24 Multi- family Residential 3/4' $ 7.77 $ 8.39 $ 9.06 $ 9.78 $ 10.56. 1" $ 10.92 $ 11.79 $ 12.74 $ 13.75 $ 14.85 1.5" $ 16.49 $ 17.81 $ 19.24 $ 20.77 $ 22.44 2" $ 36.39 $ 39.30 $ 42.44 $ 45.83 $ 49.50 3" $ 126.14 $ 136.24 $ 147.13 $ 158.91 $ 171.62 4" $ 169.81 $ 183.39 $ 198.06 1 $ 213.91 $ 231.02 Lifeline 3/4' $ 2.43 $ 2.62 $ 2.83 $ 3.06 $ 3.31 1" $ 2.43 $ 2.62 $ 2.83 $ 3.06 $ 3.31 Commercial (West) 3/4' $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1" $ 13.82 $ 14.93 $ 16.12 $ 17.41 $ 18.81 1.5" $ 24.26 $ 26.20 $ 28.29 $ 30.56 $ 33.00 2" $ 63.07 $ 68.12 $ 73.57 $ 79.45 $ 85.81 3" $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 4" $ 509.41 $ 550.17 $ 594.18 $ 641.72 $ 693.05 61" $ 509.41 $ 550.17 $ 59.4.18 $ 641.72 $ 693.05 Commercial (East) 1" $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1.5 " $ 33.97 $ 36.68 $ 39.62 $ 42.79 $ 46.21 2" $ 97.03 $ 104.79 $ 113.17 $ 122.23 $ 132.00 3"" $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 4" $ 218.32 $ 235.79 $ 254.65 $ 275.02 $ 297.02 6" $ 557.93 $ 602.56 $ 650.77 $ 702.83 $ 759.05 Industrial (West) 3/41" $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 1" $ 5.82 $ 6.29 $ 6.79 $ 7.33 $ 7.92 1.5" $ 17.95 $ 19.39 $ 20.94 $ 22.61 $ 24.42 2 " $ 53.36 $ 57.63 $ 62.24 $ 67.22 $ 72.60 3" $ 135.84 $ 146.71 $ 158.45 $ 171.12 $ 184.81 4"' $ 194.07 $ 209.59 $ 226.36 $ 244.47 $ 264.02 ,6l' $ 194.07 $ 209.59 $ 226.36 $ 244.47 $ 264.02 Industrial (East) 3/4" $ 5.34 $ 5.76 $ 6.22 $ 6.72 $ 7.26 1" $ 13.34 $ 14.41 $ 15.56 $ 16.80 $ 18.15 1.5" $ 24.26 $ 26.20 $ 28.29 $ 30.56 $ 33.00 21" $ 53.36 $ 57.63 $ 62.24 $ 67.22 $ 72.60 3" $ 218.32 $ 235.79 $ 254.65 $ 275.02 $ 297.02 4" $ 339.61 $ 366.77 $ 396.12 $ 427.81 $ 462.03 ,6" $ 921.801 $ 995.55 1 $ 1,075.191 $ 1,161.20 $ 1,254.10 Institutional 3/4" $ 4.85 $ 5.24 $ 5.66 $ 6.11 $ 6.60 1" $ 6.79 $ 7.34 $ 7.92 $ 8.56 $ 9.24 1.5" $ 10.18 $ 11.00 $ 11.88 $ 12.83 $ 13.86 2" $ 14.56 $ 15.72 $ 16.98 $ 18.34 $ 19.81 3" $ 38.82 $ 41.92 $ 45.27 $ 48.90 $ 52.81 4" $ 48.51 1 $ 52.39 1 $ 56.59 1 $ 61.11 $ 66.00 6" $ 48.51 1 $ 52.39 1 $ 56.59 1 $ 61.11 $ 66.00 Monthly Sewer Fees (per CCF sewage generation) Treatment Fee (Monthly) 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Single Family Residential $ 0.54 $ 0.58 $ 0.63 $ 0.68 $ 0.73 Multi- family Residential $ 0.67 $ 0.72 $ 0.78 $ 0.84 $ 0.91 Lifeline $ 0.27 $ 0.29 $ 0.31 $ 0.34 $ 0.37 Commercial $ 0.77 $ 0.83 $ 0.89 $ 0.97 1 $ 1.04 Industrial $ 0.77 $ 0.83 $ 0.89 $ 0.97 $ 1.04 Institutional $ 0.67 1 $ 0.72 $ 0.78 1 $ 0.841 $ 0.91 Treatment Fee (Monthly) 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 Single Family Residential 3/4' $ 13.51 $ 15.59 $ 16.63 $ 16.63 $ 16.63 10" $ 17.18 $ 19.82 $ 21.15 $ 21.15 $ 21.15 1.5" $ 18.59 $ 21.45 $ 22.87 $ 22.87 $ 22.87 2" $ 19.74 $ 22.77 $ 24.29 $ 24.29 $ 24.29 Multi- family Residential 3/4' $ 22.33 $ 25.76 $ 27.48 $ 27.48 $ 27.48 1" $ 31.28 $ 36.10 $ 38.50 $ 38.50 $ 38.50 1.5" $ 47.72 $ 55.07 $ 58.74 $ 58.74 $ 58.74 2" $ 107.03 $ 123.50 $ 131.73 $ 131.73 $ 131.73 3 " $ 363.80 $ 419.77 $ 447.75 $ 447.75 $ 447.75 4" $ 500.58 $ 577.59 $ 616.10 $ 616.10 $ 616.10 Lifeline 3/4' $ 6.76 $ 7.80 $ 8.32 $ 8.32 $ 8.32 1" $ 8.60 $ 9.92 $ 10.58 $ 10.58 $ 10.58 Commercial 3/4' $ 15.94 $ 18.39 $ 19.62 $ 19.62 $ 19.62 11" $ 39.79 $ 45.91 $ 48.97 $ 48.97 $ 48.97 1.5" $ 73.27 $ 84.54 $ 90.18 $ 90.18 $ 90.18 2 " $ 193.15 $ 222.87 $ 237.73 $ 237.73 $ 237.73 3'" $ 358.00 $ 413.08 $ 440.61 $ 440.61 $ 440.61 4" $ 1,529.74 $ 1,765.09 $ 1,882.76 $ 1,882.76 $ 1,882.76 60' $ 1,529.741 $ 1,765.09 1 $ 1,882.76 1 $ 1,882.76 1 $ 1,882.76 Industrial 3/4" $ 13.22 $ 15.25 $ 16.27 $ 16.27 $ 16.27 11' $ 17.87 $ 20.62 $ 21.99 $ 21.99 $ 21.99 1.5" $ 51.63 $ 59.58 $ 63.55 $ 63.55 $ 63.55 2" $ 157.62 $ 181.87 $ 193.99 $ 193.99 $ 193.99 3 " $ 395.11 $ 455.89 $ 486.29 $ 486.29 $ 486.29 4" $ 561.35 $ 647.71 $ 690.89 $ 690.89 $ 690.89 6" $ 561.35 $ 647.71 $ 690.89 $ 690.89 $ 690.89 Institutional 3/41" $ 12.49 $ 14.41 $ 15.38 $ 15.38 $ 15.38 V. $ 19.79 $ 22.83 $ 24.35 $ 24.35 $ 24.35 1.5 " $ 30.11 $ 34.74 $ 37.06 $ 37.06 $ 37.06 2" $ 45.65 $ 52.68 $ 56.19 $ 56.19 $ 56.19 3" $ 113.21 $ 130.63 $ 139.34 $ 139.34 $ 139.34 4" $ 134.06 $ 154.69 $ 165.00 $ 165.00 $ 165.00 6" $ 134.06 1 $ 154.69 1 $ 165.00 $ 165.00 $ 165.00 EL SEGUNDO CITY COUNCIL MEETING DATE: September 16, 2014 AGENDA ITEM STATEMENT AGENDA HEADING: City Council Reports AGENDA DESCRIPTION: Discussion and possible action regarding a request from local business owners Kimberly and Ben Wakefield for deferment of newly established fees for a facility reservation permit at Library Park. (Fiscal Impact: To Be Determined) RECOMMENDED COUNCIL ACTION: (1) Determine the outcome of the fee waiver request; and, (2) Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: (1) Request Email from Ben Wakefield FISCAL IMPACT: To Be Determined Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Michael Dugan, City Council Member REVIEWED BY: Meredith Petit, Director of Recreation and Parks Alki APPROVED BY: Greg Carpenter, City Manager BACKGROUND & DISCUSSION: On May 20, 2014, the City Council approved a fee schedule establishing new hourly rates for facility reservation permits within the parks and recreation facilities operated by the Department of Recreation and Parks. On August 1, 2014, the Department posted notification to the public indicating the new fees would be effective September 1, 2014. It was also determined that reservations booked prior to August 1, 2014, would pay the previous fees that were originally quoted upon the date of the booking. Any reservations booked after the public notification would be quoted fees at the new rates. Local business owners Ben and Kimberly Wakefield have been operating their Soccer Tots program at Library Park since April of 2011 on a park reservation basis. The process for reserving the park area for their program is completed through the following steps: the business completes and submits a permit application form, staff checks park availability and quotes the price as indicated on the fee schedule, the business submits payment, and staff issues the permit for facility usage. The Library Park hourly fee for an El Segundo For - Profit Business was previously $25 /hour. The newly approved fee is $100 /hour. In early August, Recreation and Parks staff notified the business of the upcoming change in reservation fees. On August 26, 2014, the Department received a request via email from Mr. Wakefield to consider the deferment of the fee increase for their upcoming Fall Program Session. On that date, staff had not yet received a permit application for their upcoming dates, and therefore no permit had been issued. Staff provided insight and advisement to the Wakefields on the protocol for appealing fees to City Council. On August 28, 2014, Ms. Wakefield submitted a request via email to two Council Members, Suzanne Fuentes and Mike Dugan. Mr. Dugan has requested that this item be discussed among the entire City Council for consideration and possible action. Furthermore, the Wakefields have requested the City consider a 25% revenue - sharing agreement in lieu of hourly reservation fees for their program moving forward. This type of agreement would require a License Agreement to be drafted and approved by staff, the City Attorney, and City Council. Petit, !Meredith From: Ben Wakefield [ben@orangeheadsportsia.com) Sent: Thursday, September 04, 2014 5:03 PM To: Petit, Meredith Subject: RE: Request for Fee Increase deferral for Fall session Hi Meredith, Thank you for taking the time to put together a recommendation for the City Council meeting on September 16th. We have also reached out to Mayor Fuentes, and she has acknowledged that she will be receiving a recommendation from you. Below is what we are proposing. Please let me know if you have any questions or need more information. 1.) Present: We are requesting to receive a stay of execution for our Library Park rental fees for the duration of our Fall session. Our Fall session reservation times are as follows: Saturdays, September 6th — November 15th (excluding November 1St) from 9:OOAM — 1:30PM Thursdays, September 11th — November 20th (excluding October 16th) from 3:OOPM — S:OOPM We opened registration for our Fall session on July 1St, and have already collected registrations and payments from our participants. When we set the prices for the Fall session we did so with the expectation that we would be paying the same $25 per hour rental fee that we have paid for the last 3.5 years. We physically do not have the capital to accommodate a $100 per hour park rental fee. 2.) Future: Going forward, we are hoping to work out an agreement with the City that will allow us to continue operating. We are proposing a 25% gross revenue sharing agreement. Allow me to illustrate using our 10 -week Summer 2014 session, and what the proposed increases would mean. For our 10 -week Summer session in El Segundo, we generated $10,835 in gross revenue. Hourly Rate Total Park Rental Fees Percentage of Gross Income $25 $1875 173% $100 $7500 69.2% Paying the newly implemented $100 per hour park rental fee would result in 69.2% of our gross revenue going just to field space rentals. We would only retain 30.8% of our income, and that is before paying payroll, taxes, insurance, etc. There is absolutely no way we can sustain that. A 25% gross revenue sharing agreement would stilt result in a substantial percentage increase in rental fees, but it is something that is sustainable to us as a business going forward. Also, as we grow it would increase the amount of money that we are providing the City and would allow us to experiment more with adding new classes. Going back to our Summer session example of $10,835 gross revenue, with a 25% gross revenue sharing fee: Total Park Rental Fees: $2705 Percentage increase from previous $25 per hour rental fee: 44.2 %. in this example, a 25% gross revenue sharing model would increase the amount that we have been paying the City to rent Library Park by 44.2% - a substantial percentage increase, though something we can sustain (unlike the newly implemented 400% increase). 9/8/2014 For this profit sharing model, we could provide payment in several ways, depending upon what is most convenient for the City. • Monthly payments based on income; We will provide a monthly statement breakdown of the income per class, and submit payment based on that breakdown. This allows us to accommodate for customers that join midsession for a prorated fee and ensures that the City is receiving adequate payment. • Payment at the end of the session based on complete numbers: Since we allow participants to join midsession at prorated fee, we don't have the full income information until the end of the session. This would allow the city to receive a complete lump sum payment based on every dollar we received throughout the session. • Payment at the beginning of the session based on customers registered, with an additional payment made at the end of the session to accommodate for any late joiners. We have explored the option of becoming part of the Parks & Rec department on several occasions, but because we would be required to allow Parks & Rec to handle all of our registrations, and our fee structure and payments would be out of our hands, It is just something that we cannot do. It has never been about the profit sharing. Now for the subjective justification... We are truly optimistic that we will be able to come to an agreement with the City. We have spent the last 4 years working hard to build a strong business relationship with the City and becoming part of the community. We have lived here for nearly 10 years, and have a daughter who has gone through the ES school district since TEDDE. She just started at ESMS this year. Our business is small, locally owned, and caters primarily to El Segundo residents. We have always tried to be flexible and accommodate other events in Library Park. We only use a small portion of the park, and over the years we have happily shared it with many families, dog walkers, yoga groups, personal trainers, sports pictures, and even a wedding. We graciously relocate or reschedule our classes when other events are taking place in Library Park that preclude us from utilizing the space. We try to give back to the community in as many ways as we can, both personally and professionally. Our business has donated to Eagles Nest, the Richmond Street Fall f=estival, the Center Street Ice Cream Social, and the El Segundo Movie in the Park. My wife and I have volunteered at Richmond Street School for many years, and now both hold PTA Board positions. (I am thl Race Director for the Run for Education, and she is the Middle School Founders Day Tea Committee Chair.) We consistently contribute to the Ed l Foundation. I coach and referee AYSO soccer. We love this city and the fact that owning a business here allows us to give back to it. My wife and I ARE this company, and even in the instances where our business' name has not been directly affiliated with monetary or temporal contributions it is this business that allows us to give back. Thank you for taking the time to work with us on this. It means a great deal to us. Please feel free to reach out with any questions. -Ben