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2015 Feb 17 - CC PACKETAGENDA
EL SEGUNDO CITY COUNCIL
COUNCIL CHAMBERS - 350 Main Street
The City Council, with certain statutory exceptions, can only take action upon properly posted and listed
agenda items. Any writings or documents given to a majority of the City Council regarding any matter on
this agenda that the City received after issuing the agenda packet are available for public inspection in
the City Clerk's office during normal business hours. Such Documents may also be posted on the City's
website at www.elsegundo.org and additional copies will be available at the City Council meeting.
Unless otherwise noted in the Agenda, the Public can only comment on City - related business that is
within the jurisdiction of the City Council and /or items listed on the Agenda during the Public
Communications portions of the Meeting. Additionally, the Public can comment on any Public Hearing
item on the Agenda during the Public Hearing portion of such item. The time limit for comments is five (5)
minutes per person.
Before speaking to the City Council, please come to the podium and state: Your name and residence
and the organization you represent, if desired. Please respect the time limits.
Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk
or City Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior
Tuesday). The request must include a brief general description of the business to be transacted or
discussed at the meeting. Playing of video tapes or use of visual aids may be permitted during meetings if
they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five
(5) minutes in length.
In compliance with the Americans with Disabilities Act, if you need special assistance to
participate in this meeting, please contact City Clerk, 524 -2305. Notification 45 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, FEBRUARY 17, 2015 — 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 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): -3- 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 EMPLOYMENT (Gov't Code § 54957) -0- matter
2
E
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; 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
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, FEBRUARY 17, 2015 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER
INVOCATION — Lee Carlile, Pastor, United Methodist Church
PLEDGE OF ALLEGIANCE — Council Member Dugan
11
M
PRESENTATIONS
a.) Proclamation — El Segundo to be a Host Town for the Special Olympics World
Games.
b) Presentation — Investment Portfolio Report by Treasury Department.
ROLL CALL
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) Individuals who have received value of $50 or more to communicate
to the City Council on behalf of another, and employees speaking on behalf of their employer, must so
identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and
punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to
take action on any item not on the agenda. The Council will respond to comments after Public
Communications is closed.
CITY COUNCIL COMMENTS — (Related to Public Communications)
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the
Agenda by title only.
Recommendation — Approval.
B. SPECIAL ORDERS OF BUSINESS (PUBLIC HEARING)
C. UNFINISHED BUSINESS
D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS
E. CONSENT AGENDA
All items listed are to be adopted by one motion without discussion and passed unanimously. If a call for
discussion of an item is made, the item(s) will be considered individually under the next heading of
business.
5
5
1. Warrant Numbers 3004570 through 3004723 on Register No. 9 in the total
amount of $582,701.20 and Wire Transfers from 1/19/2015 through 2/1/2015
in the total amount of $1,028,110.12.
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.
2. Regular City Council Meeting Minutes of February 3, 2015.
Recommendation — Approval.
3. Consideration and possible action to award a standard Public Works
Contract in a form approved by the City Attorney to Vantage Utility
Services, Inc. for fiber optic conduit and cable installation, project No. PW
14 -08.
_ (Fiscal Impact: $372,752.00 (includes 20% contingency))
Recommendation — 1) Authorize the City Manager to award a standard Public
Works Contract in a form approved by the City Attorney to Vantage Utility
Services, Inc. for fiber optic conduit and cable installation, project no. PW 14 -08
in the amount of $745,155; 2) Issue Change Order #1 to reduce the contract by
$434,529 for a project total of $310,626; 3) Alternatively, discuss and take other
possible action related to this item.
4. Consideration and possible action to purchase a Palo Alto enterprise
network firewall with three years of support from DZ Solutions in the
amount of $99,678.
(Fiscal Impact: $99,678.00)
Recommendation — 1) Purchase a Palo Alto enterprise network firewall with three
years of support from DZ Solutions in the amount of $99,678.00; 2) Alternatively,
discuss and take other possible action related to this item.
5. Consideration and possible action to adopt a Resolution approving Plans
and Specifications for Construction of American with Disabilities Act (ADA)
Sidewalk Ramps (CDBG Project). Project No. PW 14 -09.
(Fiscal Impact: $53.933.00 in CDBG_grant funds)
Recommendation — 1) Adopt attached resolution approving Plans and
Specification for the Construction of American with Disabilities Act (ADA)
Sidewalk Ramps (CDBG Project); 2) Authorize staff to advertise the project for
receipt of construction bids; 3) Alternatively, discuss and take other possible
action related to this item.
no
6. Consideration and possible action regarding the El Segundo Senior
Housing Corporation 2015 Annual Budget for the Park Vista Apartments
located at 615 East Holly Street.
(Fiscal Impact: None)
Recommendation — 1) Approve the 2015 Park Vista Budget; 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 10 -year License Agreement in a form approved by the City Attorney with
Girl Scouts of Greater Los Angeles to continue utilizing Camp Eucalyptus.
Fiscal Impact: None
Recommendation — 1) Authorize the City Manager to execute an agreement with
Girl Scouts of Greater Los Angeles 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 regarding 1) Approval of staff's
recommendation to provide affordable health coverage to staff as
mandated by the Affordable Care Act (ACA); and 2) Adoption of a
Resolution establishing the monthly health contribution for unrepresented
hourly employees considered full -time under the Affordable Care Act.
(Fiscal Impact: $36,960.00 annually)
Recommendation — 1) Approve affordable coverage for unrepresented hourly
employees defined as "full- time" under the Affordable Care Act; 2) Adopt the
monthly health contribution for unrepresented hourly employees; 3) Alternatively,
discuss and take other possible action related to this item.
9. Consideration and possible action to extend the Encore subscription rate
after the first year for an additional four years (five years total) to enhance
the existing Library's Circulation and Online Catalog System, Millennium,
and the recently approved upgrade to the Sierra version from Innovative
Interfaces, Inc.
(Fiscal Impact: $59,973.00 over four years)
Recommendation — 1) Authorize the City Manager to enter into an amendment to
a contract with Innovative Interfaces, Inc. in a form approved by the City
Attorney; 2) Alternatively, discuss and take other possible action related to this
item.
7
7
10. Consideration and possible action regarding adopting Ordinance No. 1504
to amend El Segundo Municipal Code Chapter 4 -10 and ESMC §§ 15 -5F -2
and 15 -5F -5 concerning regulation of massage establishments within the
City of El Segundo. Applicant: City of El Segundo
(Fiscal Impact: None)
Recommendation — 1) Waive second reading and adopt Ordinance No. 1504; 2)
Alternatively, discuss and take other possible action related to this item.
11. 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 El
Segundo Youth Sports Organizations to implement the Youth Sports Per
Player Fee for the utilization of City athletic fields.
(Fiscal Impact: None. Estimated Revenues of $35,000.00 included in the FY
14 -15 Budget) _
Recommendation — 1) Authorize the City Manager to execute License
Agreements in a from approved by the City Attorney with each El Segundo Youth
Sports Organization identified in the Youth Sports Council Athletic Field /Facility
Use and Allocation Policy; 2) Alternatively, discuss and take other possible action
related to this item.
12. Consideration and possible action to receive and file this report regarding
emergency work to repair dwelling units at the Park Vista Senior Housing
Facility due to water intrusion 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: $50,000.00)
Recommendation — 1) Receive and file this report regarding emergency work to
repair dwelling units at the Park Vista Senior Housing Facility due to water
intrusion 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 regarding awarding a contract to Big
West Construction Corporation for construction at 22 homes related to
Project RSI 14 -33 (Group 62 of the City's Residential Sound Insulation
Program).
Fiscal Impact: Estimated construction costs and retention: $1,137,400.00
Recommendation — 1) Award a contract to Big West Construction Corporation; 2)
Authorize the City Manager to execute a contract in a form approved by the City
Attorney; 3) Alternatively, discuss and take other possible action related to this
item.
E
14. Consideration and possible action regarding awarding a contract to Spec
Construction Co., Inc. for construction at 25 homes related to Project RSI
14 -32 (Group 66 of the City's Residential Sound Insulation Program).
(Fiscal Impact: Estimated construction costs and retention: $1,488,629.00
Recommendation — 1) Award a contract to Spec Construction Co., Inc.; 2)
Authorize the City Manager to execute a contract in a form approved by the City
Attorney; 3) Alternatively, discuss and take other possible action related to this
item.
15. Consideration and possible action regarding awarding a contract to Spec
Construction Co., Inc. for construction at 30 homes related to Project RSI
14 -27 (Group 69 of the City's Residential Sound Insulation Program).
(Fiscal Impact: Estimated construction costs and retention: $1,976,688.00)
Recommendation — 1) Award a contract to Spec Construction Co., Inc.; 2)
Authorize the City Manager to execute a contract in a form approved by the City
Attorney; 3) Alternatively, discuss and take other possible action related to this
item.
F. NEW BUSINESS
16. Consideration and possible action regarding the Fiscal Year 2013 -2014
Yearend Report and FY 2014 -2015 First Quarter Financial Review.
Fiscal Impact: None) _
Recommendation — 1) Receive and file FY 2013 -2014 Yearend and FY 2014-
2015 First Quarter Financial Review; 2) Alternatively, discuss and take other
possible action related to this item.
17. Consideration and possible action regarding an appeal from the El
Segundo Council of Parents and Teachers, Inc., to adjust their given score
indicating the fee waiver percentage for city support services associated
with the Run for Education.
Fiscal Impact: $3,183.00
Recommendation — 1) Discussion regarding the appeal from the El Segundo
Council of Parents and Teachers, Inc., to adjust their given score indicating the
fee waiver percentage; 2) Alternatively, discuss and take other possible action
related to this item.
G. REPORTS — CITY MANAGER
H. REPORTS — CITY ATTORNEY
0
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I. REPORTS — CITY CLERK
J. REPORTS — CITY TREASURER
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Fellhauer —
Council Member Atkinson —
Council Member Dugan -
Mayor Pro Tern Jacobson —
Mayor Fuentes —
18. Consideration and possible action to appoint Mayor Pro Tern Carl
Jacobson and Councilmember Dave Atkinson to serve on the Richmond
Street Design Committee.
_ (Fiscal Impact: None_) _
Recommendation — 1) Appoint Mayor Pro Tern Carl Jacobson and
Councilmember Dave Atkinson to serve on the Richmond Street Design
Committee; 2) Alternatively, discuss and take other possible action related to this
item.
19. Consideration and possible action to adopt a resolution in support of the
Los Angeles Air Force Base and the Space and Missile Systems Center
continuing its mission and operation in the City of El Segundo.
(Fiscal Impact: None)
Recommendation — 1) Approve the resolution; 2) Alternatively, discuss and take
other possible action related to this item.
10
10
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 se g.) for the purposes of conferring with the City's Real Property
Negotiator; and /or conferring with the City Attorney on potential and /or existing litigation; and /or
discussing matters covered under Government Code Section §54957 (Personnel); and /or conferring with
the City's Labor Negotiators.
REPORT OF ACTION TAKEN IN CLOSED SESSION (if required)
ADJOURNMENT
POSTED:
DATE: 2--11-1G7
TIME: V• �� /
NAME:
11
11
rocla atton
QCitp of el heguubo, California
WHEREAS, the Special Olympics World Games will be held July 25 to August
25P 2015; and
WHEREAS, the Special Olympics World Games is the world's largest sports
and humanitarian event in 2015; and
WHEREAS, 7,000 athletes from 177 countries will compete in the 2015
Games; and
WHEREAS, the City of El Segundo is proud to be announced as a "Host
Town" for the 2015 Games; and
NOW, THEREFORE, the Mayor and the Members of the City Council of the
City of El Segundo, California and our "Host Town" Committee, do hereby
welcome the athletes, coaches, staff, volunteers, families and spectators of the
Special Olympics World Games LA2015 to the City of El Segundo and proclaim
July 21 to July 24, 2015 to be "The City of El Segundo Host Town" days.
Wayor Suzanne Fuentes
Wayor fto Tem Carfjaco6son Counci(Wem6er DaveAtkinson
Counci(Wem6er 9Karie Eeffhauer Counci[Wem6er 9Kichae(Dugan
12
EL SEGUNDO CITY COUNCIL
AGENDA ITEM STATEMENT
AGENDA DESCRIPTION:
Presentation of Investment Portfolio Report
(Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
MEETING DATE: Feb 17, 2014
AGENDA HEADING: Presentation
1. Receive and File
2. Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Investment Portfolio Report — December, 2014
FISCAL IMPACT: $ None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
PREPARED BY: Dino Marsocci, Deputy City Treasurer I11
REVIEWED BY: Crista Binder, Treasurer
APPROVED BY: Greg Carpenter, City Manager J1
BACKGROUND & DISCUSSION:
The Treasury Department presents the December, 2014 Investment Portfolio Report which provides a
status of Treasury Investment activities and related economic indicators.
This report will be created and submitted to Council on a quarterly basis. The report will also be posted
to the City's web site under the Treasury Department.
13
Ity
5 .GO
Date: February 17, 2015
From: Office of the City Treasurer
To: El Segundo City Council
RE: Investment Portfolio Report — As of December 31, 2014
Introduction:
This report will serve as a summary for the City of El Segundo's Treasury Department investment reporting,
compliance, investment environment and future plans; as well as subsidiary schedules which will support the
Portfolio Summary and provide additional analysis of our investments.
Investment Summarv:
The investments as of December 31, 2014 are as follows:
December Portfolio Summary
Security Type
Government
Corp. Bonds
CD's
Union Bank Trust
LAW Immediate
LAIF - LAWA
LAW Subtotal
Total Invested
Trust Acct. Cash
Chase Bank - Cash
Total Portfolio
Page 11
Cost
10, 914, 722.50
3,801,142.77
8,328,000.00
Market value
10, 836, 843.70
3,766,757.50
8,325,572.56
Market
% of Total
15.83%
5.50%
12.16%
23,043,865.27
22,929,173.76
33.50%
$17,491,678.87
$19,635,135.39
$17,491,678.87
$19,635,135.39
25.56%
28.69%
$37,126,814.26
$37,126,814.26
54.24%
60,170,679.53
60,055,988.02
87.74%
$8,389,737.04
8,389,737.04
12.26%
68,560,416.57
68,445,725.06
100.00%
14
The portfolio Breakdown by Short Term (< 1 year) and Long Term is:
* Benchmark value is the Interpolated Treasury Yield to the Portfolio's Avg. Weighted Maturity
Compliance:
It is the intention of the City Treasurer's office to ensure that our investments are in compliance with the maturity
time limits and percentage allocation limits with all of our investments. The City is currently in compliance as
demonstrated below:
Partial List of Allowable Investment Instruments for Local Agencies
Short Term
Long Term
Total
Portfolio Value (Market)
$ 39,976,822
$ 20,079,166
$ 60,055,988
Effective Yield
0.306%
0.974%
0.529%
Average Wtd. Maturity
19 Days
2.61 Years
0.91 Years
Benchmark Yield
0.03% �
_ 1.10%
0.25%
* Benchmark value is the Interpolated Treasury Yield to the Portfolio's Avg. Weighted Maturity
Compliance:
It is the intention of the City Treasurer's office to ensure that our investments are in compliance with the maturity
time limits and percentage allocation limits with all of our investments. The City is currently in compliance as
demonstrated below:
Partial List of Allowable Investment Instruments for Local Agencies
Investment
Maximum
Maximum
Minimum
City of El
In
Type
Maturity
Specified % of
Quality
Segundo
Compliance
Portfolio
Requirements
Investments
Y/N
Local Agency
- _ o
Bonds
5 years
None
None
0.00 I°
Y
U. S Treasury
Obligations
5 years
None
None
°
0.00 /°
Y
US Agency
Obligations
5 years
None
None
°
15.83 /°
Y
Negotiable
Certificates of
5 years
30%
None
12.16%
Y
Deposit
Medium Term
Notes
5 years
30%
"A" Rating
5.5%
Y
Local Agency
Investment
N/A
None
None
54.20%
Y
Fund (LAIF)
Investment Environment:
The current investment environment for the types of investments we are allowed to purchase remains one of very
low returns. Since security and liquidity are more important than rate of return in our policy, we are limited to very
low risk investments which therefore have a lower interest rate. The Federal Reserve ended its Quantitative Easing
program of buying Government securities in October, but continues to reinvest principle payments and to roll over
maturing Treasury securities which in turn helps them manage the supply of investments available on the open
market. While unemployment and GDP are at acceptable levels, low inflation and unstable international markets
may cause rates to remain lower for a longer time than was anticipated just one month ago. While some short -term
rates increased from September 30th to December 311t, they have decreased in the last month; and while the short -
term rates are still above the September levels, the long -term rates have decreased to below the September rates.
Page 12
15
The graphs and charts below show some of the key interest rates on items we invest in. As rates are expected to rise
over the next few years, we want to time our investments to take advantage of the increases as they occur.
US Treasury Bonds Yield Curve as of 12/31/14
2.00 T -
1.80 4-
1.60
v
1.40
1.20 -
4
L 1.00
v
0.80
0
0.60 -
0.40
0.20 0
0.00
1 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr
12/31/2014 (9/30/2014
Composite Bond Rates (as of 2/2/15)
US Treasury Bonds
0.07
0.49
Maturity
Yield
1.06
3 Month
0.00
0.01
6 Month
0.04
0.05
2 Year
0.42
0.44
3 Year
0.75
0.73
5 Year
1.17
1.14
Municipal Bonds
Maturity
Yield
2yr AA
0.65
0.62
2yr AAA
0.58
0.56
2yr A
0.72
0.71
5yr AAA
0.91
0.91
5yr AA
1.02
1.02
Page 13
Yesterday
Yesterday
5 Yr
Last Week Last Month
0.00 0.02
0.05
0.07
0.49
0.67
0.86
1.06
1.33
1.61
Last Week
0.62
0.66
0.56
0.60
0.71
0.76
1.08
1.15
11.13
1.37
Last Month
16
US Treasury Bonds
Maturity
Yield
Yesterday
Last Week Last Month
5yr A
1.09
1.09
0 -94
1.37 j
Corporate Bonds
Maturity
Yield
Yesterday
Last Week Last Month
2yr AA
0 -72
1 0.78
0.84
0.92
2yr A
0.96
0.95
1.00
`' f
—
1.09
Syr AAA
1.31
1.47
1.74 � z
'5yr AA
__[1.30
1.70
1.67
1.84
2.07
5yr A
—
1.91 —
1 1.90
2.06
2.24 1
Source: htt finance, ahoo.com bonds com osite bond rates
Cash Flow Analysis:
The chart below shows the historical cash flow for the last 12 months. We can see that the majority of our funds are
received in the second quarter of the fiscal year, January thru March, primarily due to Business License Renewals and
the annual Chevron Payment. We also receive Sales and UUT taxes during the first few months of the year as well.
Our investments will be purchased with the liquidity relative to our cash flow needs.
Rolling 12 Month Cash Flow Analysis Total Receipts
Total Disbursements
25,000,000 -
20,000,000
15,000,000 - —•
O
p 10,000,000
— --
Jan -14 Feb -14 Mar -14 Apr -14 May -14 Jun -14 Jul -14 Aug -14 Sep -14 Oct -14 Nov -14 Dec -14
Page 14
17
This chart shows the net change in Cash as related to the Cash Flow Analysis above. Some of the larger
disbursements occur in the fourth quarter of the fiscal year, July thru September. During this period, we
have significant payments to CAPERS for our Other Post - Employment Benefits, a payment to ICRIVIA for our
citywide insurance premiums, and a large infrastructure payment for roadwork which was completed
several years ago.
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
(2,000,000)
(4,000,000)
(6,000,000)
Rolling 12 Month Net Change in Cash —*—Net Change in
Cash
Jan -14 Feb -14 Mar -14 Apr -14 May -14 Jun -14 Jul -14 Aug -14 Sep -14 Oct -14 Nov -14 Dec -14
Additional Economic Indicators:
Economic Projections from September Meeting
The Economic Indicators presented below are key items that the Federal Reserve will look at in deciding
whether or not to change interest rates going forward.
The GDP, or Gross Domestic Product, represents the market value of all goods and services produced by
the economy during the period measured, including personal consumption, government purchases, private
inventories, paid -in construction costs and the foreign trade balance (exports are added, imports are
subtracted). This is a key indicator the Federal Reserve will look at when deciding on interest rate changes.
The target level for GDP is in the 2.5% to 3.5% range.
The Unemployment Rate shows the percentage of the labor force that is unemployed but seeking work.
The target level for Unemployment is around 5.6 %.
The PCE Inflation is the Personal Consumption Expenditures rate of inflation. This index is essentially a
measure of goods and services targeted toward individuals and consumed by individuals. The long term
inflation target is around 2% per year. Core PCE Inflation excludes items such as food and energy due to
the nature of their potential price swings.
Page 15
WE
Fey Economic Projections (central teridencie5 as of
December 2014)
I2014
2015
2016
2017 1
Longerrun
Change In real GOP
2,3 to 2.4
2.6 to 3.0
2.5 to 3.0
2.3 to 2.5
2.0 to 23
September projection
2.0 to 2.2
2.6 to 3.0
2.6 to 2.9
2.3 to 2.5
2.0 to 2.3
Unemployment rate
5.8
5.2 to 5.3
5.0 to 5.2
4.9 to 5.3
5.205.5
September projection
5.9 to 6.0
5.4 to 5.6
5.1 to 5.4 '
4.9 to 5.3
5.2 to 5.5
PCE inflation
12 to 1.3
1.0 to 1.6
'17 to 2.0
1.8 to 2.0
2
September projection
1.5 to 1.7
1.6 to 1.9
1.7 t0 2.0
1.9 to 2.0
2
Core PCE inflation3
1.5 to 1.6
1,5 to 1.8
1.7 to 2.0
1.8 to 2.0
September projection
1.5 to 1.6
1.6 to 1.9
1.8 to 2.0
1.9 to 2.0
Source: Federal Reserve
http:// www. federalreserve. gov/ monetarypolicy /fomcprojtabl20l41217.htm
Unemployment
4e Ir � V VJrIJ VV7I J VrlIJ VW IJ 1 14 1 J VI11 Y U.N I Y UWI % U111 4 U"J l q 1 111 4
Month
Source: http:// data .bis.gov /pdq /SurveyOutputServlet
Page 16
19
Inflation:
i 4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
(0.5)
(10)
Inflation Rates by Month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Inflation Rates by Year
—+-2013
--W-2014
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: http:/ www. usinflationcalculator .com /inflationLcurrent- inflation- ratesl
Page 17
20
2.5
2.0
1.5
1.0
0.5
i 4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
(0.5)
(10)
Inflation Rates by Month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Inflation Rates by Year
—+-2013
--W-2014
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: http:/ www. usinflationcalculator .com /inflationLcurrent- inflation- ratesl
Page 17
20
360,000
355,000 j
350,000
345,000
340,000
I
t
335,000 -
330,000
325,000 4--
Jan
Retail Trade & Food Services, ex Auto, US Total
Seasonally Adjusted Sales (Millions of $)
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: United States Census Bureau - http: / /www.census.gov /retail /index.html
Investment Strategy:
2013
-mom 2014
It is the City and City Treasurer's policy to invest funds in accordance with the Investment Policy and to meet all legal
requirements regarding the safeguarding of funds.
As a part of the City's migration to a new banking structure, we have maintained a cash balance in order to offset our
bank fees, and are now looking at our cash flow needs in order to determine which investments will maximize return
while providing the proper level of liquidity.
The Liquidity Schedule provides an overview of when our current investments are due to mature. We will plan our
future investments to coordinate with these maturities in order to ensure a liquidity balance to our portfolio. The
Investments by Security Type schedule provides an additional breakdown of how our funds are presently allocated.
The Portfolio Summary for the month is included as an attachment to this report.
Page 18
21
Additional Notes:
The City has funds of $208,417.99 which belong to the El Segundo Senior Citizens Housing Development Corporation
and are a part of our LAIF balance. There are also LAWA RSI (Los Angeles World Airports Residential Sound
Insulation) funds of $19,635,135.39 included in the City's LAIF balances. The applicable interest for these accounts is
accrued monthly and posted quarterly in the same manner as the regular City LAIF interest posting.
Page 19
22
City of El Segundo
Investment Advisory Committee
Liquidity Schedule
As of: December 31, 2014
Item
Availability
Market Value
Cash in Bank
37.81%
25.56%
Chase
Immediate
$8,389,737.04
Union Bank - Trust Account
Immediate
$0.00
$45,516,551.30
Cash in Bank - Total
$8,389,737.04
L.A.I.F. (State of California)
LAIF Immediate
$17,491,678.87
$48,366,558.62
Cash Immediate
$25,881,415.91
L.A.I.F. - LAWA (Restricted)
LAIF Immediate
$19,635,135.39
Portfolio Investments:
< 30 Days
$0.00
$67,444,190.06
31 to 90 Days
$0.00
$68,445,725.06
91 to 180 Days
$249,857.50
181 to 365 Days
$2,600,149.82
1 to 2 Years
$5,498,505.59
2 to 3 Years
$12,094,335.85
3 to 4 Years
$1,484,790.00
4 to 5 Years
$1,001,535.00
Subtotal
$42,564,309.15
Grand Total
$68,445,725.06
$25,000,000.00
$20,000,000.00
I
$15,000,000.00
$10,000,000.00
$5,000,000.00
$0.00
Page 110
Investment Portfolio
subtotal $60,055,988.02
Investments by Maturity Date
Cumulative
% of
% of Total Total
Cumulative
Balances Assets Assets
$8,389,737.04
12.26%
12.26%
$25,881,415.91
37.81%
25.56%
$45,516,551.30
66.50%
28.69%
$45,516,551.30
66.50%
0.00%
$45,516,551.30
66.50%
0.00%
$45,766,408.80
66.87%
0.37%
$48,366,558.62
70.66%
3.80%
$53,865,064.21
78.70%
8.03%
$65,959,400.06
96.37%
17.67%
$67,444,190.06
98.54%
2.17%
$68,445,725.06
100.00%
1.46%
�, xr`� tN, aI aI k �A5 qty air A�, A�
z e � y���L� aq n� 4° �Q ate .
Ile
0 Market Value
23
100.00%
City of El Segundo
Investment Advisory Committee
Investments by Security
Type
As of: December 31, 2014
Item
Cash in Bank
Chase
Union Bank - Trust Account
L.A.I.F. (State of California)
Availability Market Value
Immediate $8,389,737.04
Immediate $0.00
Cash in Bank - Total $8,389,737.04
LAW Immediate $17,491,678.87
Cash Immediate $25,881,415.91
L.A.I. F. - LAWA (Restricted) LAW Immediate $19,635,135.39
Portfolio Investments: CD's $8,325,572.56
Gov't Obligations $10,836,843.70
Bonds $3,766,757.50
Subtotal $42,564,309.15
Page 111
Grand Total $68,445,725.06
Investment Portfolio
subtotal $60,055,988.02
Investments by Security Type
$3,766,757.50
Cumulative
% of
% of Total Total
Cumulative
Balances Assets Assets
$8,389,737.04
12.26%
12.26%
$25,881,415.91
37.81%
25.56%
$45,516,551.30
66.50%
28.69%
$53,842,123.86
78.66%
12.16%
$64,678,967.56
94.50%
15.83%
$68,445,725.06
100.00%
5.50%
24
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CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
1/19/15 THROUGH 2/1/15
Date
Payee
Amount
Description
1120/2015
IRS
291,491.66
Federal 941 Deposit
1/20/2015
Employment Development
3,232.38
State SDI payment
1/20/2015
Employment Development
66,904.28
State PIT Withholding
1/21/2015
Cal Pers
103,384.92
EFT Retirement Misc
1/21/2015
Cal Pers
289,613.51
EFT Retirement Safety
1/21/2015
Cal Pers
2,308.02
EFT Retirement Safety - Police
1/21/2015
Cal Pers
8,576.93
EFT Retirement Misc
1/22/2015
Lane Donovan Golf Ptr
18,903.43
Payroll Transfer
1/23/2015
Health Comp
1,175.35
Weekly claims
1/27/2015
Unum
208.70
Long Term Care Premium
1/29/2015
CA Infrastructure Bank
114,836.97
Semi Annual Infrastructure payment
1/29/2015
IRS
1,762.63
Federal 941 Deposit - Q4 -2014 return
1/29/2015
Employment Development
518.73
State PIT Withholding - Q4 -2014 return
1/30/2015
Health Comp
3,584.27
Weekly claims
1/30/2015
Manufacturers & Traders
25,331.42
457 payment Vantagepoint
1/30/2015
Manufacturers & Traders
477.31
IRA payment Vantagepoint
1/30/2015
Manufacturers & Traders
5,371.75
401 payment Vantagepoint
1/30/2015
US Bank - Trust Acct
7,119.15
PARS payment
1/30/2015
South Bay Credit Union
12,630.38
Payroll credit union deduction pmt
1/30/2015
Nationwide NRS EFT
41,208.54
EFT 457 payment
1/30/2015
Nationwide NRS EFT
1,665.15
EFT 401a payment
1/30/2015
State of CA EFT
910.14
EFT Child support payment
1/17/15 - 1/23/15
Workers Comp Activity
14,122.23
SCRMA checks issued
1/24/15- 1/30/15
Workers Comp Activity
12.772.27
SCRMA checks issued
1,028,110.12
DATE OF RATIFICATION: 2/2/15
TOTAL PAYMENTS BY WIRE:
1,028,110.12
Certified as to the accuracy of the wire transfers by:
Deputy City Trea`su<rer II Date
�S
Director inan Date
— ^'�
City Ma a r 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 -14 to 9 -30 -15 2/2/2W 1/1
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, FEBRUARY 3, 2015 — 5:00 PM
5:00 P.M. SESSION
CALL TO ORDER — Mayor Fuentes at 5:01 PM
ROLL CALL
Mayor Fuentes -
Present
Mayor Pro Tern Jacobson -
Present
Council Member Atkinson -
Present
Council Member Fellhauer -
Present
Council Member Dugan -
Absent
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) Individuals who have received value of $50 or more to
communicate to the City Council on behalf of another, and employees speaking on
behalf of their employer, must so identify themselves prior to addressing the City
Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250.
Mayor Fuentes announced that Council would be meeting in closed session pursuant to
the items listed on the Agenda.
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 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): -3- 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.
Initiation of litigation pursuant to Government Code §54956.9(c): -0- matter.
27
2
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957): -0- matter
APPOINTMENT OF PUBLIC EMPLOYEE (Gov't. Code § 54957): -0- matter
PUBLIC EMPLOYMENT (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
Council recessed at 6:45 PM
2
W
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, FEBRUARY 3, 2015 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER — Mayor Fuentes at 7:00 PM
PLEDGE OF ALLEGIANCE — Council Member Atkinson
INVOCATION — Tracy Weaver, City Clerk
PRESENTATIONS
ROLL CALL
Mayor Fuentes -
Present
Mayor Pro Tern Jacobson -
Present
Council Member Atkinson -
Present
Council Member Fellhauer -
Present
Council Member Dugan -
Absent
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.
Ray Pok, Region Manager for the South Bay City's, introduced himself as the City's
new representative for SCE.
Talia Gerard, Tree Musketeers Youth Director, announced Arbor Day will be held on
Saturday, March 7, 2015 from 9:30 AM — 12:30 PM. Please visit
www.treemusketeers.com for more information.
Loretta Frye, resident, announced today (February 3, 2015) kicked off Tax Preparation
season for low income and senior citizens. Tax preparation will be held on Tuesday's
from 11:00 AM — 3:00 PM at the Joslyn Center. Call 310.524.2705 to make an
appointment.
Robert Pullen- Miles, District Director for Assembly member Autumn Burke, welcomed
everyone to the swearing in of our new Assembly member, Autumn Burke, Reception at
11:00 AM and Ceremony at 12:00 PM on February 21, 2015 at the Hyperion Plant,
located at 12000 Vista Del Mar.
CITY COUNCIL COMMENTS — (Related to Public Communications)
A. PROCEDURAL MOTIONS
29
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. 4/0.
B. SPECIAL ORDERS OF BUSINESS (PUBLIC HEARING)
Consideration and possible adoption of an Ordinance amending El Segundo
Municipal Code Chapter 4 -10 and ESMC §§ 15 -5F -2 and 15 -5F -5 concerning
regulation of massage establishments within the City of El Segundo. Applicant:
City of El Segundo.
(Fiscal Impact: None)
Mayor Fuentes stated this was the time and place for a Public Hearing to adopt an
Ordinance amending El Segundo Municipal Code Chapter 4 -10 and ESMC §§ 15 -5F -2
and 15 -5F -5 concerning regulation of massage establishments within the City of El
Segundo. Applicant: City of El Segundo.
City Clerk Weaver stated that proper notice had been given in a timely manner and that
written communication has been received in the City Clerk's office and council was
copied.
Mayor Fuentes opened the Public Hearing.
Sam Lee, Director of Planning and Building Safety, gave a presentation.
MOTION by Council Member Fellhauer, SECONDED by Council Member Atkinson to
close the public hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0
Council Discussion
Mark Hensley, City Attorney, read by title only:
ORDINANCE NO. 1504
AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE CHAPTER 4 -10 AND
§§ 15 -F5 AND 15 -5F -5 REGULATIONS MASSAGE ESTABLISHMENTS WITHIN THE
CITY OF EL SEGUNDO.
Council Member Fellhauer introduced the Ordinance. Second reading will be on
Tuesday, February 17, 2015.
C. UNFINISHED BUSINESS
rd
30
2. Consideration and possible action regarding the adoption of an ordinance setting
the City's water and wastewater (sewer) rates for Fiscal Year 2014/15- 2018/19.
(Fiscal Impact: $24,510,401 in revenue to the Water Enterprise Fund and
$3,817,519 in revenue to the Sewer Enterprise Fund in 2015 for distribution,
operations and CIP.)
Council Discussion
Mark Hensley, City Attorney, answered Council questions.
MOTION by Council Member Fellhauer, SECONDED by Mayor Pro Tern Jacobson to
waive the second reading and adopt Ordinance No. 1501 setting the amount of Water
and Wastewater (sewer) Rates and Charges pursuant to Safety Codes §5471 and El
Segundo Municipal Code §11 -1 -5. MOTION PASSED BY UNANIMOUS VOICE VOTE.
4/0
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.
1 Approve Warrant Numbers 3004314 through 3004569 on Register No. 8 in the
total amount of $1,339,927.19 and Wire Transfers from 1/05/2015 through
1/18/2015 in the total amount of $3,294,961.00. Authorized staff to release.
Ratified Payroll and employee Benefit checks; checks released early due to
contracts or agreement; emergency disbursements and /or adjustments; and
wire transfers.
4. Approve Regular City Council Meeting Minutes of January 20, 2015.
5. Accept as complete the City's Tennis Court Resurfacing Grant Project at
Recreation and Park, Project No. PW 13 -30 and authorize the City Clerk to file a
Notice of Completion in the County Recorder's Office
(Fiscal Impact: $59,597.47 from Grant Funds)
6. Receive and file this report regarding emergency work to repair dwelling units at
the Park Vista Senior Housing Facility due to water intrusion 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: $50,000.00)
5
31
7. Read by title only and adopt Ordinance No. XXX amending El Segundo
Municipal Code § 1 -6 -4 regarding Employment Exclusions from Civil Service.
(Fiscal Impact: $324,312.00)
8. Award a contract, no. 4780 (refer to city council meeting minutes of 12/16/14,) to
Landrum and Brown, agreement no. 4780 for acoustical testing and
supplemental design services (related to RFQ 14 -07) for the 2014/2015 fiscal
year and authorize the City Manager to execute a contract in a form
approved by the City. Attorney for the 2014/2015 fiscal year.
(Fiscal Impact: Up to $105, 340.00; funding source: RSI Program)
9. Receive and file without objection a request for modification of an existing
Department of Alcoholic Beverage Control (ABC) License to allow the
relocation of a brewery tasting room within an existing brewery and expansion of
tasting room hours for on -site sale and consumption of beer (Type 23 State of
California Alcoholic Beverage Control License) at a small beer manufacturer
facility (El Segundo Brewing Company) at 140 Main Street. Applicant: Rob
Croxall, El Segundo Brewing Company, LLC.
(Fiscal Impact: N /A)
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Atkinson to
approve Consent Agenda items 3, 4, 5, 6, 7, 8, and 9. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 4/0
F. NEW BUSINESS
10. Presentation from the Department of Recreation and Parks and the Isaac Sports
Group for the City of El Segundo and Wiseburn Unified School District Aquatic
Center Facility Programming, Design, and Financial Analysis Report Preliminary
Report.
(Fiscal Impact: None)
Meredith Petit, Director of Recreation and Parks, gave a presentation.
Stu Isaac, Isaac Sports Group, gave a presentation.
Council Discussion
Meredith Petit, Director of Recreation and Parks, states a final report will be presented
at the March 3, 2015 City Council Meeting.
11. Consideration and possible action to approve a request from the Special
Olympics World Games in Los Angeles 2015 for the City of El Segundo to be a
Host Town.
(Fiscal Impact: Unknown)
t
32
Greg Carpenter, City Manager, presented the item.
Joann Klonowski, Special Olympics World Games — Vice President -Host Towns, gave a
brief overview of a Host Town's responsibility.
Krystal Sylvia, Special Olympics World Games - Global Messenger, spoke briefly on
how the Special Olympics have changed her life.
William H Yarroll II, answered Council questions.
Council Discussion
MOTION by Council Member Fellhauer, SECONDED by Council Member Atkinson
approved the request from the Special Olympics World Games in Los Angeles 2015 to
participate as a Host Town. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0
G. REPORTS — CITY MANAGER - None
H. REPORTS — CITY ATTORNEY - None
REPORTS — CITY CLERK - None
J. REPORTS — CITY TREASURER — Not Present
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Fellhauer — Recently attended the Independent Cities Association
Winter Conference. Ms. Fellhauer stated our own officer, Lt. Carlos Mendoza spoke at
the conference on behalf of LA IMPACT.
Council Member Atkinson — Thanked everyone for coming out to the meeting this
evening.
Council Member Dugan - Absent
Mayor Pro Tern Jacobson — None
Mayor Fuentes — Attended and presented at Mayor Eric Garcetti's Convening of the
Mayors meeting, held at the Columbia Memorial Space Center in Downey. Ms. Fuentes
spoke on the importance of the Los Angeles Air Force Base.
7
33
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) Individuals who have receive value of $50 or more to
communicate to the City Council on behalf of another, and employees speaking on
behalf of their employer, must so identify themselves prior to addressing the City
Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250.
While all comments are welcome, the Brown Act does not allow Council to take action
on any item not on the agenda. The Council will respond to comments after Public
Communications is closed.
Jack Axelrod, resident, made several request of our Council.
MEMORIALS — Brian Kutil
ADJOURNMENT at 8:35 PM
Tracy Weaver
34
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to award a standard Public Works Contract in a form
approved by the City Attorney to Vantage Utility Services, Inc. for fiber optic conduit
and cable installation, project no. PW 14 -08. (Fiscal Impact: $372,752 (includes 20%
contingency)).
RECOMMENDED COUNCIL ACTION:
1. Authorize the City Manager to award a standard Public Works Contract in a form
approved by the City Attorney to Vantage Utility Services, Inc. for fiber optic conduit
and cable installation, project no. PW 14 -08 in the amount of $745,155.
2. Issue Change Order #1 to reduce the contract by $434,529 for a project total of
$310,626.
3. Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Project Bid Sheet
Change Order #1
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $312,263
Additional Appropriation: Yes $60,489
Account Number(s): 601 - 400 - 8201 -8497 (Capital Improvements — I -Net Fiber
Optics Capital Project)
ORIGINATED BY: Larry Klingaman, Information Systems Manager
REVIEWED BY: Mitch Tavera, Chief of Police
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
As part of the City's ongoing fiber optic cable connection project, on October 7, 2014, the City
Council adopted plans and specifications to connect facilities on each side of Sepulveda
Boulevard and authorized Staff to advertise for construction bids (PW 14 -08). This phase of the
project includes installing a new section of conduit across Sepulveda Blvd. and the installation of
new fiber optic cable through both the new and existing conduit pathways. The existing
pathways were recently installed during Public Works Project PW 11 -13.
Additionally, this phase will extend the City owned fiber optic network into a data center on the
eastern side of the City.
35
The plans and specifications included additional sections of conduit and fiber cabling identified
by Staff to expand the City's network and provide access into two (2) additional data centers
located within the City.
Completion of this phase in the next six months will provide City access to ultra -high speed
Internet connectivity increasing website speeds and enabling downtown wireless. This phase also
lays the foundation for a dark fiber program where the City provides fiber optic connectivity to
businesses in the Smokey Hollow area.
In response to PW 14 -08, on January 13, 2015, the City Clerk received and opened one (1)
responsible bid as follows:
1. Vantage Utility Services, Inc. $745,155
Staff verified the contractor's references and license status, and received favorable reviews for
similar type work.
Because the project was advertised with new sections of conduit and cable into two additional
data centers, the bid received was well above the initial budget. Staff and Vantage Utility
Services, Inc. agreed to reduce the scope of work back to the initial goal of the project which
included extending the City owned fiber network across Sepulveda Boulevard and into the
Equinix data center only. This change order reduced the contract cost with Vantage Utility
Services, Inc. by $434,529.
Staff recommends that City Council award a standard public works contract to Vantage Utility
Services, Inc. in the amount of $745,155 and immediately issue Change Order #1 to Project
Number PW 14 -08 in the amount of $434,529, thus reducing the approved project total to
$310,626. Staff also recommends adding a 20% construction contingency to the project in the
amount of $62,125 bringing the total approved funding to $372,752.
36
MY OF EL SEGUNDO- BID SHEET
FIBER OPTIC NETWORK EXPANSION
PROJECT NO. PW 14 -08
Line Quantity Description Bid $ Per Bid $ Total
(City x Bid $ Per)
1
LS
Mobilization for Ten Thousand lump sum
$ 107000.00
$ 10.000.OD
Dollars
Pothole existing utilities prior to
2
LS
commencing any excavation for
$ 27,065.00
$ 27,065.00
Twenty Seven Thousand lump sum
iv Dgl Ism
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
services necessary for Installation of 4 -inch
3
5,715 LF
PVC conduit at various locations using open
$ 75.42 LP
$.L31,025-330
trench method including backfill and AC
pavement for Seventy Five Dollars per
LF and Forty Two Cents
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
4
400 LF
services necessary for Installation of 4 -inch
$_10.58 LF
$22232.00
PVC conduit at various locations using direct
boring method for Fitly Dollars _ per LF
and Fifty Eight Cents
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
5
7
services necessary for installation of Jensen
$ 9,524.00 EACH
$ 59,668.00
44X- FOH48 -09 or equivalent Pullboxes at
various locations for Ei t Thousand Five
each Hundred Twenty Four
Dollars
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
6
6,115 LF
services necessary for installation of Cable
$0.43 LF
_,629.45
$2
Identification tapes for all new conduit for
Forty Three Cents per LF
I —C -3
37
Line
Quantity
Description
Bid $ Per
Bid $ Total
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
7
6,115 LF
services necessary for installation of low
$_L.31 LF
$1,010.65
friction, polyethylene jacketed
polypropylene rope with 1800 psi tensile
strength for One Dollar and per LF
Thirty One Cents
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
8
6,323 LF
services necessary for installation of Corning
$ 3.2Q LF
$20, 32 3.60
Altos 144EU4T4101D20144 strand single
mode fiber optic cable or equivalent
through existing conduit forThree per LF
Dollars and Twenty Cents
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
services necessary for fusion splicing and
9
1 EA
termination of one Corning Altos 144EU4-
$13,513.0 EACH
$ 13.5 13.00
T4101D20144 strand single mode fiber
optic cable (Both sides for a total of 288
connections) for 'hie -Thousand each
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
services necessary for installation of a
10
1 EA
Coming CCH -04U Closet Conector Housing
$.6,757.00 EACH
$ 6,757.00
or equivalent (populated with 6 CCH -CS24-
A9-POORE Pigtailed Casettes) for
S"r TbO each
FJ ft
Provide, furnish, test and deliver all
materials, tools, equipment, labor and
services necessary for installation of a
11
1 EA
Coming WCH -12P wall mount connector
$3,78$_00 EACH
$ 3,785.00
housing or equivalent with a Corning WCH-
SPLC-12 Splice Tray Holder or equivalent
(populated with 6 CCH- CP24 -A9 dual LC
panels) forThreeThOumbach
I
Seven Hundred Eighty Five Dolim
1 —C -4
W
Line
Quantity
Description
Bid $ Per
Bid $ Total
SgFt
Provide water -tight electrical conduit
12
LS
sealant and fire rated caulks for
$_1.435.01
$ 4,435.00
A2
SgFt
Four Thousand Four lump sum.
$_L.28 SgFt
$113,157.00
Hundred Thirty Five Dollars
13
LS
Provide Traffic Control for
$ 13,002.00
$ 3t
Thirteen Thousand Two Dollars lump sum.
.00z.00
Provide replacement street striping and
14
LS
markings forMevenThousand Six Hundred lump
$_11,632.00
$ 11,632.00
SUM. Thirty Two Dollars
SUB TOTAL j 631,988.00
OPTIONAL
Line Quantity Description Bid $ Per Bid $ Total
jQty x Bid $ Per)
Al
7,1 0
{El Al rovide slurry seal for
$ 5
$ 25,717.50
SgFt
Fo ive cents sq ft
57,150
(EITHER Ai orA2) Provide 2" Overlay for
A2
SgFt
the width of the travel lane in which the
$_L.28 SgFt
$113,157.00
trench is located
OPTIONAL
TOTAL
138,874.50
I —C -5
BID TOTAL 1 770,862.50
(SUB+OPT1ONAL)
39
Charge Order 1
Overview
Item Description
Bid Qty
Adjustment
3 Installation of 4" Conduit (Open Trench)
5715
-3750
5 Installation of Pull Box
7
-4
2 Pothole Existing Utilities
27065
-17759
6 Cable ID Tape
6115
-3750
7 Pull Rope
6115
-3750
12 Water Tight Sea lant
4435
-2910
13 Traffic Control
13002
-8531
14 Street Striping
11632
-7633
Al 2" Overlay for Entire lane of travel
57150
-37500
Item Remove Conduit for Digital Realty
3 Installation of 4" Conduit (Open Trench)
5 Installation of Pull Box
2 Pothole Existing Utilities
6 Cable ID Tape
7 Pull Rope
12 Water Tight Sealant
13 Traffic Control
14 Street Striping
Al 2" Overlay for Entire lane of travel
Item Remove Conduit for T5
3 Installation of 4" Conduit (Open Trench)
5 Installation of Pull Box
2 Pothole Existing Utilities
6 Cable ID Tape
7 Pull Rope
12 Water Tight Sealant
13 Traffic Control
14 Street Striping
Al 2" Overlay for Entire lane of travel
Detail
Award
Adjustment
Price
Extended
1965
$
75.42
$
(282,825.00)
3
$
8,524.00
$
(34,096.00)
9306
$
1.00
$
(17,759.19)
2365
$
0.43
$
(1,612.50)
2365
$
1.31
$
(4,912.50)
1525
$
1.00
$
(2,910.10)
4471
$
1.00
$
(8,531.50)
3999
$
1.00
$
(7,632.55)
19650
$
1.98
$
(74,250.00)
8019
$
1.00
$
(434,529.33)
Bid Qty
Adjustment
Award
Price
Extended
5715
-1775
3940
$
75.42
$ (133,870.50)
-2
$
8,524.00
$ (17,048.00)
27065
-8406
18659
$
1.00
$ (8,406.01)
6115
-1775
4340
$
0.43
$ (763.25)
6115
-1775
4340
$
1.31
$ (2,325.25)
4435
-1377
3058
$
1.00
$ (1,377.45)
13002
-4038
8964
$
1.00
$ (4,038.24)
11632
-3613
8019
$
1.00
$ (3,612.74)
57150
-17750
39400
$
1.98
$ (35,145.00)
$ (150,918.50)
Bid Qty
Adjustment
Award
Price
Extended
5715
-1975
3740
$
75.42
$ (148,954.50)
4
-2
2
$
8,524.00
$ (17,048.00)
27065
-9353
17712
$
1.00
$ (9,353.17)
6115
-1975
4140
$
0.43
$ (849.25)
6115
-1975
4140
$
1.31
$ (2,587.25)
4435
-1533
2902
$
1.00
$ (1,532.66)
13002
-4493
8509
$
1.00
$ (4,493.25)
11632
-4020
7612
$
1.00
$ (4,019.81)
57150
-19750
37400
$
1.98
$ (39,105.00)
$ (166,002.50)
The removal of the segments for Digital Realty and T5 Data Centers reduces the amount of 4" conduit being installed
by 65.62 %. Bid items 2,6,7,12,13,14, and Al are adjusted down for the reduced work proportionately. Items shown
with a price of $1.00 were bid lump sum.
HE
Change Order
City of El Segundo, Public Works Department
Permit No.: N/A
Plan No.(S): Project Number:
Change Order No.: 1
PW 14 -08
Contractor Name: Vantage Utility Services
Project Manager Name: Frank Madera
Contractor Address:
Project Manager Phone: 909 - 949 -6060
1369 W. Ninth Street
Upland, CA 91786
Contractor Phone: 909 - 949 -6060
Contract No.:
File Reference:
Inspector Name: Larry Klingaman
TBD
N/A
Phone: 310 -524 -2392
Contract Description: Installation of Fiber Optic Network conduit and cable to across Sepulveda.
® Change order request Approved for the following reasons:
Project scope was expanded to include conduit to two additional data centers on the East side of town.
Project bid came in above the budgeted amount of $312,000. These changes will scale back the project to
the original scope to fit within the budgeted amount.
❑ You Are Hereby Authorized And Instructed to Make The Following Change(S). Add the
Following items of Work:
See Attachment A for description of changes.
Method of Payment (May Be Combination):
® Contract Unit Prices ❑ Contractor's Quote (see attached) ❑ Time & Materials (Estimated)*
REVISED CONTRACT COSTS:
REVISED CONTRACT TIMELINE:
Original Contract Cost: $745,155.00
Original Start Date: TBD
Previous Changes: $0
Original Working Days: 60
Deletions to Bid
Previous Work Days Changes: -
Items Per this CO: $ <434,529.33>
Current CO Work Days Change: -
New Contract Cost: $310,625.67
New Total Working Days: 60
% Above Original Contract Cost: N /A%
New Completion Date: TBD
CITY OF EL SEGUNDO
Approved By: Date:
Greg Carpenter, City Manager
Note: This Change Order is Effective on the date signed by the City Representative. Notify the Project Engineer immediately
if there is any disagreement. The Change Order costs indicated on this form represent the complete cost to perform the noted
work. No other incidental or related costs are due or will be claimed by the contractor for this item of work without the express
written approval from the City.
Received:
Frank Madera — President Date
Vantage Utility Services
41
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: February 17, 2015
AGENDA HEADING: Consent Agenda
Consideration and possible action to purchase a Palo Alto enterprise network firewall
with three years of support from DZ Solutions in the amount of $99,678. (Fiscal Impact:
$99,678)
RECOMMENDED COUNCIL ACTION:
(1) Purchase a Palo Alto enterprise network firewall with three years of support from DZ
Solutions in the amount of $99,678.
(2) Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
DSA Technologies Inc. Quote
DZ Solutions Quote
Insight Quote
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $100,000.00
Additional Appropriation: No
Account Number(s): 301 - 400 - 2505 -8108 Enterprise Network Firewall
ORIGINATED BY: Larry Klingaman, Information $y terns Manager
REVIEWED BY: Mitch Tavera, Chief of Police `►
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
On September 16, 2014, the City Council adopted the budget for fiscal year 2014/15 which
included the purchase of an enterprise network firewall at a cost not to exceed $100,000. The
new firewall is required to keep the City's growing computer network fast, safe, and reliable.
After researching top firewall technology providers, Staff selected to evaluate market leaders
Palo Alto Networks and Check Point Software Technologies. Staff also evaluated Cisco Systems
as the City utilizes their product for most other networking equipment, however, based on initial
vendor presentations, it became apparent that Cisco's solution would not meet the City's needs.
Staff next conducted onsite demonstrations with both Palo Alto Networks and Check Point
Software Solutions by installing their equipment in the City's production environment.
Staff spent considerable time working with both firewall products by performing tasks typical of
our environment. Both products gave staff the ability to manage network traffic by limiting
0
W
access to specific areas based on traffic content, end user, and pattern matching and destination.
Additionally, both products provided adequate protection for our network resources.
From the management perspective, the Palo Alto device allowed Staff to be more effective as
Staff could perform changes more rapidly, and the interface was considerably easier to use.
Staff obtained the following budgetary hardware quotes for the initial purchase for both vendor
products:
Palo Alto Networks - $36,000
Check Point Software Solutions - $39,600
Although the initial costs for both systems were nearly the same, the recurring costs for the
Check Point Software solution were estimated at $53,000 (annually), while the recurring costs
for the Palo Alto Network solution were estimated to be $22,000 (annually). Due to the
similarity of the Firewall effectiveness and large recurring cost differential, Staff recommends
purchasing the Palo Alto Network solution.
Staff then obtained the listed quotes for the initial equipment purchase and three years of
maintenance /support for the Palo Alto Network product from the following providers:
1. DSA Technologies $114,835.00
2. DZ Solutions $ 99,678.52
3. Insight $ 95,145.22
Although Insight provided the lowest quote, their proposal failed to include the professional
services necessary to migrate from existing City equipment. DSA Technologies and DZ
Solutions included these services at a charge of $12,500 and $8,750 respectively. Therefore, DZ
Solutions was deemed to be the lowest responsible quote.
It should be noted, Staff recommends purchasing the three year support option as it yields a
saving to the City of approximately 22% every year. Refer chart:
Based on the aforementioned research and quotes, Staff recommends purchasing a Palo Alto
enterprise network firewall, along with three years of maintenance and support from DZ
Solutions in the amount of $99,678.
43
1 Year
3 Year
Yearly Savings
Equipment Support
$ 5,484
$ 4,385
$ 1,099
20%
Threat Prevention
$ 6,480
$ 4,976
$ 1,504
23%
DE3 URL Filtering
$ 6,480
$ 4,976
$ 1,504
23%
Total
$ 18,444
$ 14,337
$ 4,107
22%
Based on the aforementioned research and quotes, Staff recommends purchasing a Palo Alto
enterprise network firewall, along with three years of maintenance and support from DZ
Solutions in the amount of $99,678.
43
QSA Technologies, Inc.
DSA Technologies, Inc.
2372 Maritime Drive
Elk Grove, CA 95758
916- 567 -4444
Bill To
Scott Kim
City of El Segundo
34 Main Street
El Segundo CA 90245
Ship To
Scott Kim
City of El Segundo
348 Main Street
El Segundo CA 90245
Quote
Hate
1/12/2015
Quote #
24862
Expires
1/2712015
Acct Manager
Project
1
Terms
Net 30
Shipping Method
9.0%
Small Business Certification #34638
Accepted By:
Printed Name:
I I
1 Premium support 3 -year prepaid, PA -3060 13,820.00 13,820.00 i
50 i DSA Technologies Professional Services - Per Hour Rate ' 250.00 - 12,500.00
I Installation and configuration services 1 j
i I
k,
Subtotal 110,380.00
Total Tax 4,455.00
Total $114,835.00
PRICES SUBJECTTO CHANGE -PRICES BASED UPON TOTAL PURCHASE -ALL DELIVERY, TRAINING OR CONSULTING SERVICES TO BE BILLED AT PUBLISHED RATES FOR EACH
ACTIVITY INVOLVED -WE SPECIFICALLY DISCLAIM ANY AND ALL WARRANTIES, EXPRESS OR IMPUED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OR WITH REGARD
TO ANY LICENSED PRODUCTS, WE SHALL. NOT BE LIABLE FOR ANY LOSS OF PROFITS, BUSINESS, GOODWILL, DATA, INTERRUPTION OF BUSINESS, NOR FOR INCIDENTAL OR
CONSEQUENTIAL MERCHANTABILITY OR FITNESS OF PURPOSE, DAMAGES RELATED TO THIS AGREEMENT. MINIMUM 15% RESTOCKING FEE WITH ORIGINAL PACKAGING.
ii
Date:
8 yam�8,,
nyylt--
1
Palo Alto Networks PA -3+060
i 36,00000 I
36,000.00
9.0%
i
1
; Palo Alto Networks PA -3060, OnSite Spare unit
13,500.00 !
13,500.00:
I
9.0%
1
' Palo Alto Threat prevention subscription 3 year prepaid, PA -306:0
17,280.00
17,280.00
I
PANDB URL Filtering subscription 3 -year
17,280.00
17,280.00 I
fff prepaid, PA -3060
i
I I
1 Premium support 3 -year prepaid, PA -3060 13,820.00 13,820.00 i
50 i DSA Technologies Professional Services - Per Hour Rate ' 250.00 - 12,500.00
I Installation and configuration services 1 j
i I
k,
Subtotal 110,380.00
Total Tax 4,455.00
Total $114,835.00
PRICES SUBJECTTO CHANGE -PRICES BASED UPON TOTAL PURCHASE -ALL DELIVERY, TRAINING OR CONSULTING SERVICES TO BE BILLED AT PUBLISHED RATES FOR EACH
ACTIVITY INVOLVED -WE SPECIFICALLY DISCLAIM ANY AND ALL WARRANTIES, EXPRESS OR IMPUED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OR WITH REGARD
TO ANY LICENSED PRODUCTS, WE SHALL. NOT BE LIABLE FOR ANY LOSS OF PROFITS, BUSINESS, GOODWILL, DATA, INTERRUPTION OF BUSINESS, NOR FOR INCIDENTAL OR
CONSEQUENTIAL MERCHANTABILITY OR FITNESS OF PURPOSE, DAMAGES RELATED TO THIS AGREEMENT. MINIMUM 15% RESTOCKING FEE WITH ORIGINAL PACKAGING.
ii
12424 Wilshire Blvd. Dale: 117114
Suite 800 Valid Until: 218114
Los Angeles, CA 90025 Quote 4: 21SOlEO- EL- PA3060 COLD
Office: 424-238-7300 SPARE v5(3YR_PREMiUM)
Fax: 424-238-7305 J
_ Qu�oWlfohP nid:Fdc ,::;. ..
,:' -., " '.rDZ'$dktllans=Aoi•,•oGns Eirepl6da .. .: -
Customer.
Contact:
Phone:
E -Mail'
City of El Segundo
Name:
Phone.
Eaulall:
Call:
Eon OlDmu
La lJm Amen
424-238-7300x218
310-524-2392
is • r
517 - 974 -3779
k i n a
PoloAIto 3060 Flrewall - On -Site Cokf Spare UnR Conlig
Includes 3 Year Premium Sum coverage
.' limteNr lP ojth ?iGf$'BCior1t19�581v14es:`. -. .. _,
Ouenlll
Part Number
Desrli lion
Unit Price
Eid Price
1
1
PAN-PA -3060
PAN -PA- 3060 -08S
Palo Alto Networks PA -306D
Palo Alto Networks PA -3060 - On -SlIe Spare Unit
5 31.104.00
S 12,852.00
S 31,104.00
S 12,852.00
- - Total
S 43. 956 -00
.' limteNr lP ojth ?iGf$'BCior1t19�581v14es:`. -. .. _,
Quantity
Part Number
Description
Unit Price
Ext Price
1
1
PAWPA�3060 -TP -3YR
PAN -PA- 3060 -URL4 -3YR
Palo Alto Networks - Threat Prevention Subscription - 3 -Year Prepaid - PA -3060
.Palo Alto Networks OR URL Raring Subscription - 3 -Year Prepaid - PA -3060
S 14,929.92
S 14,929.92
5 14,929.92
S 14,929.92
Total
S 29.859.84
.' limteNr lP ojth ?iGf$'BCior1t19�581v14es:`. -. .. _,
Quantity
Part Number
Description
Unit Price
_ Ext Price
1
PA14- SVC- PREM- 30604YR
-Pato AILO Networks Premium Support - 3 Year - PA -3060
S 13,156.64
S 13,156.64
Total
S 13,156.64
.' limteNr lP ojth ?iGf$'BCior1t19�581v14es:`. -. .. _,
Quantity
Part Number
Description
Unit Price
Ext Price
50
DZ_PROSERV
DZ Solutions Profasaionas Servioe Hours
S 200.00
S 10,000.00
50
BKT DSCT
DZ Solutions Professional Services - Bucket Hours Discount
S -25.00
S - 1.250.00
1
DZ-INSTALL
02 Solutions Full InslalllConfig of Palo Alto Firewall Appliances: 'total of 38 HRs
BKT,_HRS
BKT_HRS
6 Hours -Audit Current Network Routing and Firawall (ASA) Configuration
- City of El Segundo (CES) to provide DZ Solutions with full configurations of
firewall (ASA) and adjacent network devices (core switches, routers, etc) and/or
read -only access to those devices to map out the current network architecture and
routing design.
- CES to provide DZ ail relevant network diagrams
DZ to review relevant device configurations
8 Hours -ASA Security Policies! Translations Report and CES Revlew/Frune
- DZ Solutions to generate reportof all security policies and translation (NAT)
policies and provide to CES for review.
- CES will remove unused or unnecessary policies and provide DZ with final fist of
potkiaa required for the now Palo Alto deployment.
8 Hours - Palo Alto ConfguraUon
- DZ Solutions to Create documentation (change request) of final Palo Alto
configuration and the proposed method of procedure (MOP) for the maintenance to
deploy the new Palo Alto firewalls, Including roll -back plan
2 Hours - Configuration Review and Deployment Plan
- DZ Solutions to meet with CES to review final planned Palo Alto configuretion anu
discuss the proposed MOP
4 Hours -Palo Alto Flrewall Pro-install Preparation
- DZ Solutions to upgrade Palo Alto Firewatle to latest slab]@ software and install all
licenses
- Using Information from the network device configuration audit and pruned pollcles
rovidod by CES. DZ Solutions to pro-oonf ura Palo fulo firawalls
45
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1
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99.£79.52
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for feature rollout
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URL Filtering
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has 300 or Was security and translation policies, 2 VPN tunnels and static
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Insi aht
PUBLIC SECTOR
SOLD -TO PARTY
City of El Segundo
350 MAIN ST
EL SEGUNDO CA 90245 -3813
USA
SHIP -TO ADDRESS
City of El Segundo
350 MAIN ST
EL SEGUNDO CA 90245 -3813
USA
We deliver according to the followina terms:
Insight Pubtic Sector SLED
6820 5 HARL AVE
TEMPE AZ 852B3 -4318
Tel: 800 -467 -4448
s
oa l ;
QE .
Quotation Number Creation Date
216373146
12 -JAN -2015
PO Number
PO Release
Customer No.
10086662
Sales Rep
Christopher Letsinger
Email
cletsing @insight.com
Telephone
800 -467 -4448 k 5820
Payment Terms Net 30 days
Ship Via Insight Assigned Carrier / Ground
Terms of Delivery FOB DESTINATION
Currency USD
Material Description Quantity Unit Price Extended Price
NON-STOCK-ITEM PAWPA43060-OSS Palo Alto Networks PA -3060, OnSite 1 13,209.75 13,20175
Spare unit
OPEN MARKET
PAN -PA -3060 PALO ALTO NETWORKS PA -3060 1 33,372.00 33,372.00
OPEN MARKET
NON_STOCK_ITEM PAN -PA- 3060- TP -3YR Threat prevention subscription 1 16,018.56 16,018.56
3 -year prepaid, PA -3060
OPEN MARKET
Pagel of 2
47
Inslaht Quotation Number/ Creation Date
216373146 /12-JAN-2015
JLb PUBLIC SECTOR
Material Description Quantity Unit Price Extended Price
NON—STOCK—ITEM PAN -PA- 3060 - URE4-3YR PANDB URL Filtering 1 16,018.56 16,018.56
subscription 3 -year prepaid, PA -3060
OPEN MARKET
NON—STOCK—ITEM PAN- SVC -PREM- 3060 -3YR Premium support 3 -year 1 13,522.87 13,522.87
prepaid, PA -3060
OPEN MARKET
Product Subtotal 92,141.74
Tax 3,003.48
Total 95,145.22
Thank you for considering Insight. Please contact us with any questions or for additional information about Insight's
complete IT solution offering.
Sincerely,
Christopher Letsinger
800 - 467.4448 Ex 5820
cletsing @insight.com
Fax: 480.764 »8104
Insight Global Finance has a wide variety of flexible financing options and technology refresh solutions. Contact your Insight representative
for an innovative approach to maximizing your technology and developing a strategy to menage your financial options.
Subject to IP5 Terms & Conditions online unless purchase Is being made pursuant to a separate written agreement in which case
the terms and conditions of the separate written agreement shall govem.
https:llwww,Igs.lnsight. caml us / niterms- con_ditionslterms -of- sale- products.html
Page 2 of 2
MR
EL SEGUNDO CITY COUNCIL MEETING DATE: Feb. 17, 2015
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to adopt a Resolution approving Plans and
Specifications for construction of American with Disabilities Act (ADA) Sidewalk
Ramps (CDBG Project). Project No. PW 14 -09 (Fiscal Impact: $53,933.00 in CDBG
grant funds)
RECOMMENDED COUNCIL ACTION:
1. Adopt the attached resolution approving Plans and Specification for the construction
of American with Disabilities Act (ADA) Sidewalk Ramps (CDBG Project).
2. Authorize staff to advertise the project for receipt of construction bids.
3. Alternatively, discuss and take other possible actions related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Resolution and Location Map
FISCAL IMPACT: $53,933 in anticipated grant funding
Amount Budgeted: $53,933.00
Additional Appropriation: No
Account Number(s): 111 - 400 - 2781 -8441 (Community Development Block Grant:
Capital Projects)
ORIGINATED BY: Arianne Bola, Senior Engineer Associate Al&
REVIEWED BY: Stephanie Katsouleas, Public Works Director
APPROVED BY: Greg Carpenter, City Manager QA
BACKGROUND AND DISCUSSION:
Each year, the City of El Segundo applies for Community Development Block Grant (CDBG)
funds (federal funds) from the Community Development Commission of the County of Los
Angeles (CDC). This funding is available for community development projects that meet
national objectives that benefit low and moderate income persons, address slums or blight and /or
meet a particular urgent community development need. The City's specific ADA Ramp
Installation Project, which consists of installation of new curb ramps at thirteen (13) locations
within the City (see attached location map), meets this funding criteria.
As with many federally funded projects, the City will pay for all construction costs and receive
reimbursement once the applicable project documents have been approved by CDC
administrator. Funding for this year's project is approximately $53,933. The City has been
actively identifying and pursuing grant funding for priority locations, including known routes of
disabled citizens and areas which experience high volumes of pedestrian traffic. Last year, the
City was able to program CDBG grant funding towards the construction of eleven (11) new
5
..
ADA ramps. Once bids are opened and costs known, the City will evaluate whether additional
locations can be added to the contract to maximize our installation goals.
Staff therefore recommends that City Council adopt the plans and specifications for the
installation of ADA ramps, approve the attached resolution, and authorize the project for receipt
of construction bids.
50
RESOLUTION NO.
A RESOLUTION APPROVING THE DESIGN AND PLANS
FOR THE CONSTRUCTION OF ADA RAMPS (CDBG
PROJECT) PURSUANT TO GOVERNMENT CODE SECTION
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 specifications and plans requesting
Construction of ADA Ramps (CDBG Project) (the "Project "). These plans
are complete. Bidding for 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 ") following receipt of construction bids. The
Project Payment Account will be 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.
Resolution No.
Page 1 of 2
51
SECTION 5: This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this 17th day of February, 2015.
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
Karl H. Berger, Assistant City Attorney
Suzanne Fuentes, Mayor
Resolution No.
Page 2 of 2
52
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53
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding the El Segundo Senior Housing Corporation 2015 Annual
Budget for the Park Vista Apartments located at 615 East Holly Street.
(Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1. Approve the 2015 Park Vista Budget;
2. Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. 2015 Park Vista Budget
FISCAL IMPACT: N /A— No General Fund
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
PREPARED BY: Jesse Bobbett, Recreation Superintendence
REVIEWED BY: Meredith Petit, Director of Recreation and Parks
APPROVED BY: Greg Carpenter, City Manager .,/�
BACKGROUND & DISCUSSION:
On Wednesday, January 28, 2015, the El Segundo Senior Housing Corporation Board of Directors
approved the 2015 Annual Budget (see summary below) for the Park Vista Apartments located at 615
East Holly Street. The increase in revenues is a result of a 2% rental rate increase effective April 1,
2015. The increases in expenses are primarily due to general building maintenance, insurance,
management fees, and utilities. The Plan of Operations of the Senior Housing Board Corporation
mandates that the annual budget be approved by City Council before being adopted.
Operating Budget Annual Comparison
Wo
54
2014
2015
Variance
Increase /Decrease
Revenue
$ 601,548
$ 613,100
$ 11.552
1.92%
Ex enses
$ 386,990
$ 401,225
$ 14.235
3.68%
Loan Payment
1 156,000
$ 156,000
$ 0
0 %
Net Income
1 $ 58,558
$ 55,875
($2,684)
(4.58%)
Wo
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55
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to authorize the City Manager to execute a 10 -year License
Agreement in a form approved by the City Attorney with Girl Scouts of Greater Los Angeles to
continue utilizing Camp Eucalyptus. (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1. Authorize the City Manager to execute an agreement with Girl Scouts of Greater Los
Angeles 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.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Jesse Bobbett, Recreation Superintendent
REVIEWED BY: Meredith Petit, Director of Recr 'on and Parks
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND & DISCUSSION:
On May 20, 2014, City Council approved a fee schedule establishing new hourly reservation rates for
Recreation and Parks Department facilities including Camp Eucalyptus. The Recreation and Parks
Fee Analysis Task Force created and recommended the fee schedule with the understanding that
long- standing non - profit organizations such as El Segundo Girl Scouts would be exempt from such
charges for facilities they have historically utilized at no cost. The approved fee schedule reservation
rate for Camp Eucalyptus was set at $45 per hour for all other El Segundo Non - Profit Groups.
El Segundo Girl Scouts has partnered with the City of El Segundo to use Camp Eucalyptus as their
home since the 1940's. Since that time, the Girl Scouts have offered a low cost program to local
female youth which gives them the opportunity to learn various life skills and become leaders in the
community. Over the past 70 years, Camp Eucalyptus has seen a number of changes including the
construction of a new facility during the 1990's which was done with the input of the Girl Scouts
along with various members of the community. The new building allowed the Girl Scouts to remain
at the site as the main tenant at no cost and continue assisting with some general upkeep of the
facility as needed. Currently, the Girl Scouts use 775 hours of reservation space each year which
would cost the group $34,875 in reservation fees annually. Due to their status as a 501(c) 3 non-
profit organization and low registration costs, paying this fee would not be feasible for the program
to continue.
City Staff recommends City Council approve the attached license agreement which would allow El
Segundo Girl Scouts to continue using Camp Eucalyptus at no cost as they traditionally have for a
term of 10 years.
W
LICENSE AGREEMENT BETWEEN THE
CITY OF EL SEGUNDO AND
GIRL SCOUTS OF GREATER LOS ANGELES
THIS LICENSE is made and executed this 18th day of February, 2015, between the CITY
OF EL SEGUNDO, a municipal corporation ( "CITY "), and GIRL SCOUTS OF GREATER
LOS ANGELES, 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 Camp Eucalyptus located at 641
California Street ( "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 purpose of Girl Scouts
activities and programs.
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 February 18,
2015 and end on September 30, 2025. 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, CITY agrees for
LICENSEE not to pay any amount for the term of this License.
1 of 7
57
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
2of7
� f,
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.
3 of 7
59
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
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:
GIRL SCOUTS OF GREATER LOS ANGELES
Attn: Naomi McElwain
801 S. Grand Avenue, Suite 300 and 325
Los Angeles, CA. 90017
or to CITY at:
Department of Recreation & Parks
Attn. Jesse Bobbett
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.
5 of 7
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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.
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:
Tracy Weaver,
City Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
David H. King, Deputy City Attorney
6of7
Taxpayer ID No.
5
Exhibit A
Scope of Services
CITY agrees that LICENSEE will provide the following services at City's Camp Eucalyptus
located at 641 California Street:
1. Certified and /or trained staff to operate Girl Scouts activities and programs.
7of7
63
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding 1) Approval of staff's recommendation to provide
affordable health coverage to staff as mandated by the Affordable Care Act (ACA); and 2)
Adoption of a Resolution establishing the monthly health contribution for unrepresented hourly
employees considered full -time under the Affordable Care Act. Fiscal Impact: $36,960 annually
RECOMMENDED COUNCIL ACTION:
1. Approve affordable coverage for unrepresented hourly employees defined as "full- time" under
the Affordable Care Act
2. Adopt the month health contribution for unrepresented hourly employees.
3. Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. Resolution establishing the monthly health contribution for unrepresented hourly employees
defined by the Affordable Care Act.
FISCAL IMPACT:
Amount Budgeted: $ N/A
Additional Appropriation: $36,960
Account Number(s): Salary and Benefit departmental budgets for employees
electing coverage
ORIGINATED BY: Lisa Jenkins, Sem uman Resources Analyst 9b
REVIEWED BY: Martha A. Dijkst erector of Human Resources
APPROVED BY: Greg Carpenter, City Manager,
BACKGROUND AND DISCUSSION:
Effective January 1, 2015, the Affordable Care Act (ACA) requires employers with 100 or more
employees to offer affordable, minimum essential health insurance coverage to employees who
meet the definition of a "full- time" employee. Under the Act, a full -time employee is someone
who works an average of 30 hours a week during the designated measurement period. Under the
Act, employers may be subject to penalties 1) for not offering minimum essential coverage to at
least 70% of the eligible employees (known as Penalty A) and /or 2) for not offering affordable
coverage (known as Penalty B).
The City currently offers health insurance to all full -time employees and permanent part-time
employees covered by a bargaining unit. Health Benefits are provided through Ca1PERS under the
Public Employees' Hospital and Medical Care Act ( PEHMCA), and the City must follow
applicable provisions of the PEMHCA in the administering health benefits.
The City will not be subject to Penalty A as the City provides minimum essential coverage (MEC)
to substantially all employees. All health plans offered through Ca1PERS meet the Act's minimum
essential requirements and the City offers coverage to substantially all eligible employees with the
exception of the newly eligible ten (10) employees. Therefore, the City meets the 70% threshold.
The 70% threshold is a form of transitional relief that will increase to 95% in 2016.
The recommended contribution to health benefits for the hourly unrepresented employees classified
as full -time under the ACA addresses Penalty B. Penalty B is assessed if any of the ten (10) newly
eligible employees is not offered health insurance and as a result, goes to California's Healthcare
Exchange (also known as Covered California or "the Exchange ") to purchase insurance. The
penalty assessed is per individual employee in the monthly amount of $260 for 2015 ($3,120 per
employee annually).
In order to comply with the ACA, Staff began tracking and monitoring work hours for the hourly,
unrepresented part-time population in order to determine which employees worked an average of
30 hours a week from 10/5/13- 10/3/14 (the City's designated measurement period for determining
eligibility for health insurance coverage in 2015). Records show a total of ten (10) hourly, part-
time employees met this threshold (or were hired into a position approved to work 30 hours per
more /week) and are eligible to be offered health insurance coverage. Therefore, Staff conducted an
analysis of the affordability calculation for each employee in order to determine a contribution that
would satisfy the affordability coverage for all hourly unrepresented employees qualifying for
coverage under the ACA. The City utilized a "rate of pay safe harbor" for calculating affordability
for employees designated as full -time under the ACA. In order for coverage to be affordable under
this designated safe harbor, the cost for employees cannot exceed 9.5% of their average rate of pay.
Although the City is obligated to offer coverage to the employee and eligible dependents under the
ACA, the affordability calculation is based upon the cost of the least expensive self -only plan
($430.71 /month for Calendar Year 2015 based upon available Ca1PERS plans). Under PEMHCA
rules, the City must provide the same contribution to all employees in the same group or class of
employees, so the City does not have the ability to pay premiums for employees based upon an
individual affordability calculation. As stated above, offering a monthly health contribution that
does not provide affordable coverage to all City employees would subject the City to the potential
penalty of $260 /month for each employee seeking coverage from the Exchange.
The following provides a listing of employees (listed by position title) eligible for coverage under
the ACA:
Maximum exposure calculation for unrepresented hourly employees meeting the definition of Full -Time
under the Affordable Care Act (10/05/13 - 10/03/14)
65
Maximum
Possible
employee
City Cost
Penalty for
Calculated
can pay for
Lowest
for
Cost of
not
Rate of Pay
affordable
Monthly
"affordable
making
providing
Average
(Monthly =
coverage
Plan
" coverage
coverage
affordable
Weekly
Hourly Rate
(9.5% of
Cost
per
affordable
coverage
Position Title
Hours
x 130)
rate of pa
2015
employee
$280 /mo.
$260 /mo.)
Water/Wastewat
40.59
3086.20
293.19
430.71
137.52
$3,360
$3,120
er Worker
Recreation
39.37
2516.80
239.10
430.71
191.61
$3,360
$3,120
Leader
Recreation
37.15
2070.90
196.74
430.71
233.97
$3,360
$3,120
Leader
Recreation
36.31
2397.20
227.73
430.71
202.98
$3,360
$3,120
Leader
1
65
Police Assistant
I
36.06
2680.60
254.66
430.71
176.05
$3,360
$3,120
Recreation
35.49
2070.90
196.74
430.71
233.97
$3,360
$3,120
Leader
Recreation
34.70
1618.50
153.76
430.71
276.95
$3,360
$3,120
Leader
Park
31.06
2984.80
283.56
430.71
147.15
$3,360
$3,120
Maintenance
Worker
Recreation
30.53
2516.80
239.10
430.71
191.61
$3,360
$3,120
Leader
Administrative
30.30
3296.80
313.20
430.71
117.51
$3,360
$3,120
Specialist
Park
approved
2707.90
257.25
430.71
173.46
$3,360
$3,120
Maintenance
r e
hr. . // week
Worker
position
Total Maximum Exposure):
$36,960
$34,320
Contributing a monthly amount of $280 will satisfy the affordability requirement for all existing
unrepresented hourly employees. Employees qualifying for coverage under the ACA will be
responsible for paying the remainder of their monthly premiums for themselves and qualifying
dependents they choose to enroll in a health plan. The cost associated with this contribution is
comparable to paying the $260 monthly penalty should employees purchase insurance through the
Exchange.
FISCAL IMPACT
The ACA requires only that employees be offered coverage, and the fiscal impact associated with
offering coverage will be fully dependent upon the number of employees who accept health
insurance through the City and the City's designated contribution. Therefore, the fiscal impact
information is based upon a maximum exposure calculation, and the actual cost to the City will be
dependent upon the number of employees who select the offered coverage. Based upon 10
qualifying employees at $3,360 per year ($280 /month), the maximum fiscal impact is estimated at
$36,960 annually.
RECOMMENDATION
Staff recommends the City offer a monthly medical contribution in the amount of $280 /month to all
ten (10) employees to make insurance affordable, consistent with the intent of the law. In order to
implement this contribution through Ca1PERS, Staff is also recommending the approval of the
attached Health Resolution for unrepresented hourly employees.
.,
RESOLUTION NO.
RESOLUTION ELECTING TO BE SUBJECT TO PUBLIC
EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT AND
FIXING THE EMPLOYER'S CONTRIBUTION AT AN AMOUNT
EQUAL TO OR GREATER THAN THAT PRESCRIBED
BY GOVERNMENT CODE SECTION 22892(b)
The City Council of the City of El Segundo does resolve as follows;
WHEREAS, (1) Government Code Section 22922(a) provides the benefits of the Public
Employees' Medical and Hospital Care Act to employees and annuitants
of local agencies contracting with the Public Employees' Retirement
System on proper application by a local agency; and
WHEREAS, (2) Section 22892(a) of the Act provides that a local contracting agency shall
fix the amount of the employer's contribution; and
WHEREAS, (3) City of El Segundo hereinafter referred to as Public Agency, is a local
agency contracting with the Public Employees' Retirement System; and
WHEREAS, (4) The Public Agency desires to obtain for the members of Unrepresented
Hourly Employee Group who are employees and annuitants of the
agency, the benefit of the Act and to accept the liabilities and obligations
of an employer under the Act and Regulations; now, therefore, be it
RESOLVED, (a) That the Public Agency elects, and it does hereby elect, to be subject to
the provisions of the Act; and be it further
RESOLVED, (b) That the employer's contribution for each employee or annuitant shall be
the amount necessary to pay the full cost of his /her enrollment, including
the enrollment of family members, in a health benefits plan or plans up to
a maximum of $280.00 dollars per month, plus administrative fees and
Contingency Reserve Fund assessments; and be it further
RESOLVED, (c) That City of El Segundo has fully complied with any and all applicable
provisions of Government Code Section 7507 in electing the benefits set
forth above; and be it further
RESOLVED, (d) That the participation of the employees and annuitants of the City of El
Segundo shall be subject to determination of its status as an "agency or
instrumentality of the state or political subdivision of a State" that is eligible
to participate in a governmental plan within the meaning of Section 414(d)
of the Internal Revenue Code, upon publication of final Regulations
pursuant to such Section. If it is determined that the City of El Segundo
would not qualify as an agency or instrumentality of the state or political
subdivision of a State under such final Regulations, CaIPERS may be
obligated, and reserves the right to terminate the health coverage of all
participants of the employer.
67
RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint
and direct, the City Clerk to file with the Board of Administration of the
Public Employees' Retirement System a verified copy of this Resolution,
and to perform on behalf of said Public Agency all functions required of it
under the Act and Regulations of the Board of Administration; and be it
further
RESOLVED, (f) That coverage under the Act be effective on April 1, 2015.
PASSED, APPROVED AND ADOPTED this 17th day of February, 2015.
Suzanne Fuentes
Mayor
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA STATEMENT AGENDA HEADING: Consent
AGENDA DESCRIPTION:
Consideration and possible action to extend the Encore subscription rate after the first year for an
additional four years (five years total) to enhance the existing Library's Circulation and Online
Catalog System, Millennium, and the recently approved upgrade to the Sierra version from
Innovative Interfaces, Inc. (Fiscal Impact: $59,973 over four years)
RECOMMENDED COUNCIL ACTION:
1) Authorize the City Manager to enter into an amendment to a contract with Innovative
Interfaces, Inc. in a form approved by the City Attorney; 2) Alternatively, discuss and take other
possible action related to this item.
=14F.1a1u1VETO"
Amount Budgeted: $59,973
Account Number(s): 001 - 400 - 2505 -6217; 601 - 400 - 6101 -8108
ORIGINATED BY: Debra Brighton, Director of Library Services
REVIEWED BY: Larry Klingaman, Information Services Manager
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
At the City Council meeting on December 16, 2014, Council approved a contract with
Innovative Interfaces, Inc., to install and maintain the migration from the Library's Millennium
System to Sierra System, and a subscription to Encore for access to enhanced technologies. The
first year of the Encore subscription services was estimated to be approximately $14,000, which
was part of the total $46,000 total contract amount approved by the City Council.
Since the Council's approval of the contract, staff has actively negotiated the contract with
Innovative representatives. During negotiations, Innovative advised City staff the price of the
Encore subscription depends on the City approving a 5 -year amendment to the contract. The
yearly costs of the subscription services are below.
Year
Contract
Market
Savings
1
$
16,523
$
16,523
- (Already Approved)
2
$
14,086
$
17,349
$
3,263
3
$
14,674
$
18,217
$
3,543
4
$
15,287
$
19,127
$
3,840
5
$
15,926
$
20,084
$
4,158
$
14,804
M.
If the City approves the "Contract" prices listed above for Years 2 through 5 (i.e., for a total of
$59,973 over four years), the subscription services will be "locked in ". If the City does not
approve an amendment to the contract approving these prices, then the yearly prices for the
subscription service could increase by 5 %, as reflected in the "Market" column above. The
"Savings" column above reflects the amount of money the City will save if it approves Encore
subscription services for Years 2 through 5 now (i.e., $14,800 over the term of the agreement).
Staff recommends extending the Encore subscription rate after the first year for an additional
four years (five years total) to enhance the existing Library's Circulation and Online Catalog
System, Millennium, and the recently approved upgrade to the Sierra version from Innovative
Interfaces, Inc. (Fiscal Impact: $59,973 over four years)
70
EL SEGUNDO PLANNING COMMISSION MEETING DATE: February 17, 2015
AGENDA ITEM STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and potential action regarding adopting Ordinance No. 1504 to amend El Segundo
Municipal Code Chapter 4 -10 and ESMC §§ 15 -5F -2 and 15 -517-5 concerning regulation of massage
establishments within the City of El Segundo. Applicant: City of El Segundo (Fiscal Impact: None)
RECOMMENDED ACTION:
1. Waive second reading and adopt Ordinance No 1504; and /or
2. Alternatively, discuss and take other possible action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. Ordinance No. 1504.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Kimberly Christensen, AICP, Planning Manager`!°
REVIEWED BY: Sam Lee, Director of Planning and Building Safety
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND & DISCUSSION:
I. Background and Discussion
On February 3, 2015, the City Council introduced an Ordinance to amend El Segundo
Municipal Code Chapter 4 -10 and ESMC §§ 15 -5F -2 and 15 -517-5 concerning regulation of
massage establishments within the City of El Segundo. If adopted, Ordinance No.1504 will
become effective in 30 days.
PAPlanning & Building Safety \0 Planning - Old\PROJECTS (Planning) \1101 - 1125 \1101 - Massage Ordinance\EA 1101 -CC Staff Report
2nd Reading.doc
1
10
71
ORDINANCE NO. 1504
AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE
CHAPTER 4 -10 AND §§ 15 -5F -2 AND 15 -5F -5 REGULATING
MASSAGE ESTABLISHMENTS WITHIN THE CITY OF EL SEGUNDO.
The City Council of the city of El Segundo does ordain as follows:
SECTION 1: Findings. The City Council finds as follows:
A. The City currently regulates the practice of massage and the operation
of massage establishments for the benefit of the public health, safety
and welfare.
B. Business and Professions Code §§ 4600, et seq. (enacted by SB 731
in 2008 and amended by AB 619 in 2011) created a statewide system
for issuing massage worker permits, preempting local permitting
systems and requirements. The statewide permitting system is
administered by the California Massage Therapy Council or "CAMTC."
C. Assembly Bill 1147 (enacted in 2014 and effective January 1, 2015)
amended Business and Professions Code §§ 460 and 4600.5 and
Government Code § 51034 to return land use authority over massage
establishments to cities.
D. On December 22, 2014, the City of El Segundo initiated an application
for Environmental Assessment No. EA -1101 and Zone Text
Amendment No. ZTA14 -04 to amend the ESMC regulating massage
establishments within the City of El Segundo.
E. 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 El Segundo Municipal Code ( "ESMC ").
F. The City reviewed the project's environmental impacts under the
California Environmental Quality Act (California Public Resource 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).
G. The Planning and Building Safety Department completed its review
and scheduled the public hearing regarding the application before the
Planning Commission for January 8, 2015.
H. On January 8, 2015, the Planning Commission held a public hearing to
72
receive public testimony and other evidence regarding this Ordinance,
including, without limitation, information provided to the Planning
Commission by City staff and public testimony.
On January 8, 2015, the Planning Commission adopted Resolution No.
2766 recommending the City Council approve Environmental
Assessment No. EA -1101 and Zone Text Amendment No. ZTA 14 -04.
J. The City Council desires to amend the ESMC to reestablish the City's
land use authority and to regulate massage establishments to the
fullest extent allowed under state law.
K. This Ordinance and its findings are made based upon the entire
administrative record including, without limitation, testimony and
evidence presented to the City Council at its February 3, 2015,
hearing including, without limitation, the staff report submitted by the
Planning and Building Safety Department.
SECTION 2: Environmental Assessment. The proposed Zone Text Amendment is
exempt from further review under the California Environmental Quality Act
(California Public Resources Code §§ 21000, et seq., "CEQK) and CEQA
Guidelines (14 California Code of Regulations §§ 15000, et seq.) because it
establishes rules and procedures to permit operation of existing facilities; consists
only of minor revisions and clarifications to existing regulations and specification of
procedures related thereto; and consists of actions taken to assure the maintenance,
protection and enhancement of the environment. This ordinance, therefore, does not
have the potential to cause significant effects on the environment. Consequently, it is
categorically exempt from further CEQA review under 14 Cal. Code Regs. §§ 15301,
15305, and 15308.
SECTION 3: General Plan Findings. As required under Government Code § 65860,
the ESMC amendments proposed by the Ordinance are consistent with the El
Segundo General Plan as follows:
A. The proposed zone text amendment conforms with Land Use Element
Goal LU4 in that the amendment will help provide a stable tax base for
the City by providing a clear regulatory framework for massage uses
and permit their operation in a manner similar to other personal service
uses.
B. The proposed zone text amendment is also consistent with Economic
Development Element Goal ED1 in that the amendment will help create
in El Segundo a strong, healthy economic community in which all
diverse stakeholders may benefit.
SECTION 4: Zone TextAmendment Findings. In accordance with ESMC § 15 -26 -4,
2
73
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 necessary to comply with Business and Professions Code §§
4600, et seq., to provide a clear regulatory framework for massage
uses and permit their operation in a manner similar to other personal
service uses consistent with state regulations.
SECTION 5: ESMC § 15 -5F -2 is amended to read as follows:
"15 -5F -2: PERMITTED USES:
The following uses are permitted in the MU -S zone:
A. Business service establishments such as electronic computer facilities and
addressing services.
B. Engineering, industrial design, consultation and other offices.
C. Financial institutions.
D. General offices of commercial, financial or industrial establishments.
E. Hotels and motels.
GF. Medical - dental offices or facilities.
#G. Motion picture /television production facilities (excluding outdoor facilities).
fH. Restaurants and cafes.
JI. Retail (excluding off site alcohol sales) and wholesale sales and service.
KJ. Scientific research and experimental development laboratories.
L. K. Other similar uses approved by the director of planning and building safety,
as provided by chapter 22 of this title."
3
74
SECTION 6: ESMC § 15 -5F -5 is amended to read as follows:
"15 -5F -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. Assembly halls.
B. Catering services and flight kitchens.
C. Drive - through restaurants.
D. Freight forwarding.
E. Helicopter landing facilities subject to the provisions of section 15 -2 -13 of this
title.
F. Hospitals.
G. Massage establishments that meet the requirements of chapter 4-10 of
this code, in addition to all other requirements imposed by law.
GH. Motion picture /television production facilities (outdoor facilities only).
44I. On site sale and consumption of alcohol at bars.
tJ. 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.
JK. Parking facilities, including park and ride lots.
KL. Recreational facilities (public and commercial).
LM. 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.
M.N. Video arcades with four (4) or more video or arcade machines.
NO. Other similar uses approved by the director of planning and building safety,
as provided by chapter 22 of this title."
2
75
SECTION 7: ESMC § 4 -10 -1 is amended to read as follows:
"4 -10 -1: PURPOSE:
A. This chapter establishes new permitting standards intended to comply
with California law and establish zoning, business licensing, and
health and safety guidelines for massage establishments.
B. This chapter is not intended to be exclusive and compliance will not
excuse noncompliance with any state or local laws or regulations that
are uniformly applied to other professional or personal services
businesses including, without limitation, all zoning applications;
business license regulations; building, fire, electrical, and plumbing
codes; and health and safety code laws and regulations applicable to
professional or personal services businesses.
C. This chapter establishes a local regulatory system that allows only
state certified massage therapists and massage practitioners to
operate within the City. This chapter is also intended to allow a
transitional pe }r,iced -�OF ertain existing massage-- I)Faet+tienerns to
Gent.inue pFast+si }g while they obtain state GeFtifiGatien h re
Denemher 1 2012 and to GE)GFdinate the timing of the City's business
�cTrmcr�� � cv r�c+rr�cv vv v�rarrrcrcvzrrc- cirrnrtg- �rrm��rr�v- puJmcv,�
erSo renewals with the state m a6sag�e nerfifi alien nrGGes e
.the City
to exercise broad control over land use in regulating _massage
establishments and to impose and enforce reasonable and
necessary fees and regulations, in keeping with the requirements
of existing law, while being mindful of the to protect
legitimate business owners and massage professionals."
SECTION 8: ESMC § 4 -10 -2 is amended to read as follows:
"4 -10 -2: 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 chapter.
Words and phrases not defined by this chapter have the meaning set forth
elsewhere in this Code, the Business and Professions Code, or Government
Code.
"California Massage Therapy Council (CAMTC)" means the California Massage
Therapy Council created pursuant to Business and Professions Code §
4500.5(a).
5
76
"Certified Massage Practitioner" means a person who is currently certified as a
massage practitioner by the CAMTC, and who administers massage for
compensation.
"Certified Massage Therapist" means a person who is currently certified as a
massage therapist by the CAMTC, and who administers massage for
compensation.
"City" means the City of El Segundo.
"Director" means the planning manager or such other d+rester- erson designated
by the city manager.
"Massage" means any method of pressure on, or friction against, or stroking,
kneading, rubbing, tapping, pounding, vibrating or stimulating the external parts
of the human body with the hands or with the aid of any mechanical or electrical
apparatus, or other appliances or devices, with or without such supplementary
aids as rubbing alcohol, liniment, antiseptic, oil, powder, cream, lotion, ointment
or other similar preparations.
"Massage Establishment" means and includes any massage establishment,
parlor, or any room, place or institution where massage is given or administered
by a massage technician as the primary service of the business establishment.
"Massage Technician" means any person, who gives, performs or administers to
another person a massage for any form of consideration.
"Person" means and includes person(s), firms, corporations, partnerships,
associations or other forms of business organization or group.
"Specified anatomical areas" means and includes any of the following human
anatomical areas: genitals, pubic regions, anuses or female breasts below a
point immediately above the top of the areola.
"Specified sexual activities" means and includes all of the following:
A. Fondling or other erotic touching of specified anatomical areas;
B. Sex acts including, without limitation, intercourse, oral copulation, or
sodomy;
C. Masturbation; or
D. Excretory functions as part of or in connection with any specified
sexual activity listed in this definition."
6
77
SECTION 9: ESMC Chapter 4 -10 is amended by adding a new § 4 -10 -5 to read as
follows:
"4 -10 -5: PERMIT REQUIRED:
Every person conducting, managing, operating, owning or in control
of a massage establishment or any other place that is open to the
public or is a private club, where facial massages, fomentations
massages, electric or magnetic treatments, or alcohol rubs are
administered or given, or any public bathing place, which has in
connection therewith _a steam room, dry or hot room plunge,
swimming pool, shower, bath, or sleeping accommodations, must
obtain a conditional use permit. A conditional use permit issued
pursuant to this section must include, as a condition of approval, a
requirement that the permittee notify the City of any change in
ownership."
SECTION 10: ESMC Chapter 4 -10 is amended by adding a new § 4 -10 -6 to read as
follows:
"4 -10 -6: BUSINESS LICENSE REQUIRED:
Before-operating any massa a establishment or becoming en a ed
in the occupation of a massa a Practitioner or massa a technician
the individual _proposing to conduct the business must obtain the
required business license to do so and in addition unless otherwise
specified, is subject to each and all of the terms, conditions and
provisions of this chapter. A business license is not transferable."
SECTION 11: ESMC Chapter 4 -10 is amended by renumbering existing §§ 4 -10 -5
through 4 -10 -12 as follows:
§ 4 -10 -5 is renumbered as § 4 -10 -7.
§ 4 -10 -6 is renumbered as § 4 -10 -8.
§ 4 -10 -7 is renumbered as § 4 -10 -9.
§ 4 -10 -8 is renumbered as § 4- 10 -10.
§ 4 -10 -9 is renumbered as § 4- 10 -11.
§ 4 -10 -10 is renumbered as § 4- 10 -12.
§ 4 -10 -11 is renumbered as § 4- 10 -13.
§ 4 -10 -12 is renumbered as § 4- 10 -14.
SECTION 12: Existing § 4 -10 -13 is renumbered as § 4 -10 -15 and is amended to read
as follows:
"4- 104315: REVOCATION:
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A. Grounds for Revocation. The Director or City Attorney may revoke
approvals issued under this chapter for one or more of the following
grounds:
1. Fraud or Deceit. That the applicant practiced fraud or deceit in
obtaining an approval under this chapter;
2. Violation of Chapter. That the massage establishment owner,
operator, massage technician, or its employee, agent,
independent contractor or other representative violated a
provision or provisions of this chapter;
3. Criminal Conviction. That the massage establishment owner,
operator, massage technician, or its employee, agent,
independent contractor or other representative has been
convicted in a court of competent jurisdiction of any offense
described in this chapter;
4. Improperly Maintained Facilities. That the facilities and
operations of the massage establishment are not kept in
compliance with this chapter, and that the owner or operator has
failed to promptly remedy any deficiency of which they have
been notified. For purposes of this subsection, "notice" means
notice given personally or by leaving notice at the massage
establishment premises, or by first class mail, postage prepaid,
to the address designated by the massage technician or
establishment in accordance with this chapter;
5. Employment of Uncertified Technicians. That the massage
establishment has employed, allowed or permitted an
uncertified person to perform massage in the massage
establishment;
6. Error. That the approval was issued in error;
7. Civil Penalties. -Assessment of three or more civil penalties as
provided by this chapter during any six month period; or
8. Prohibited Conduct. A massage establishment owner, operator,
massage technician, or its employee., er—agent, independent
contractor or other representative has been found to have
engaged in prohibited conduct in violation of this chapter.
B. Notice of Revocation. Upon a determination on the grounds to revoke
an approval under this chapter, the Director or City Attorney must
cause a notice of revocation to be mailed by first class, postage
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79
prepaid mail, to the address designated by the massage technician or
establishment pursuant to this chapter.
C. Suspension or Revocation of Conditional Use Permit A
conditional use permit issued to a massage establishment may be
suspended or revoked.,pursuant to Chapter 15 -23 of this code."
SECTION 13: Existing § 4 -10 -14 is renumbered as § 4- 10 -16.
SECTION 14: Existing § 4 -10 -15 is renumbered as § 4 -10 -17 and is amended to read
as follows:
"4- 104617 APPEAL:
Any person denied an approval under this chapter or a massage establishment
owner or operator whose approval has been revoked may appeal the denial or
revocation in writing pursuant to the appeal procedures provided in by section 1-
2A-15 et seq. of this code. Such appeal must be in writing an must be filed with
the City Clerk not more than fifteen (15) days following the Director's deposit into
the mail of the notice of denial or revocation sent to the applicant or massage
establishment owner or operator to the address listed by the applicant or
massage establishment owner or operator pursuant to this chapter. Any
successful appeal will result in approval or reinstatement of an approval and
refund of any fines collected by the City. the foregoing, any
appeal of a suspension or revocation of a conditional use permit issued to
a massage establishment must comply with Chapter 15 -23 of this code."
SECTION 15: Construction. This Ordinance must be broadly construed in order to
achieve the purposes stated in this Ordinance. It is the City Council's intent that the
provisions of this Ordinance be interpreted or implemented by the City and others in a
manner that facilitates the purposes set forth in this Ordinance.
SECTION 16: Enforceability. Repeal of any provision of the ESMC does not affect any
penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of
penalties for any violation occurring before this Ordinance's effective date. Any such
repealed part will remain in full force and effect for sustaining action or prosecuting
violations occurring before the effective date of this Ordinance.
SECTION 17: Validity of Previous Code Sections. If this entire Ordinance or its
application is deemed invalid by a court of competent jurisdiction, any repeal or
amendment of the ESMC or other city ordinance by this Ordinance will be rendered void
and cause such previous ESMC provision or other the city ordinance to remain in full
force and effect for all purposes.
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SECTION 18: Severability. If any part of this Ordinance or its application is deemed
invalid by a court of competent jurisdiction, the City Council intends that such invalidity
will not affect the effectiveness of the remaining provisions or applications and, to this
end, the provisions of this Ordinance are severable.
SECTION 19: 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 20: This Ordinance will take effect on the 31st day following its final passage
and adoption.
PASSED, APPROVED, AND ADOPTED this 17th day of February, 2015.
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
Suzanne Fuentes,
Mayor
Karl H. Berger, Assistant City Attorney
ATTEST:
TRACY SHERRILL WEAVER, City Clerk
10
5%
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF EL SEGUNDO )
I, TRACY SHERRILL WEAVER, City Clerk of the City of El Segundo, California, do
hereby certify that the foregoing Ordinance No.1504 was introduced, and placed upon
its first reading at a meeting of the City Council of the City of El Segundo, held on the
3rd day of February, 2015. That thereafter on the 17th day of February, 2015, said
Ordinance was duly passed, approved and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN
Dated this
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
day of
Tracy Sherrill Weaver, City Clerk
City of El Segundo, California
PAPlanning & Building Safety \0 Planning - Old \PROJECTS (Planning) \1101- 1125 \1101- Massage Ordinance \EA - 1101 —ES —
Massage Ordinance (2- 17- 15).doc
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82
EL SEGUNDO CITY COUNCI MEETING DATE: February 17, 2015
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 El Segundo Youth Sports Organizations to
implement the Youth Sports Per Player Fee for the utilization of City athletic fields.
(Fiscal Impact: None. Estimated Revenues of $35,000 included in the FY 14 -15 Budget)
RECOMMENDED COUNCIL ACTION:
(1) Authorize the City Manager to execute License Agreements in a form approved by the City
Attorney with each El Segundo Youth Sports Organization identified in the Youth Sports
Council Athletic Field /Facility Use and Allocation Policy; and,
(2) Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
(1) List of Youth Sports Council Organizations
(2) Sample License Agreement
FISCAL IMPACT: None. Estimated Revenues of $35,000 included in the FY 14 -15 Budget
Amount Budgeted: $35,000
Additional Appropriation: None
Account Number(s): 001 - 300 -5204 -3874 (Sports Leagues)
ORIGINATED BY: Jesse Bobbett, Recreation Superintendent a
REVIEWED BY: Meredith Petit, Director of Recreation and Parks
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND & DISCUSSION:
The Recreation and Parks Fee Analysis Task Force was created on September 18, 2012, and was
tasked with analyzing and recommending fees associated with programs and services offered
through the Recreation and Parks Department, with cost - recovery and sustainability as a primary
focus. The Task Force recommended that the El Segundo Youth Sports Organizations that are
identified in the Youth Sports Council pay a "per player" fee in the amount of $10 for each resident
player and $30 for each non - resident player within their organization. Traditionally, these
organizations have utilized available City fields at no charge for their traditional, post, and non-
traditional seasons and have also been allowed one no -cost camp or clinic each calendar year.
At the City Council meeting on May 20, 2014, City Council approved the per player fee as stated
above. Once approved, City staff began working with a subcommittee of Youth Sports Council
representatives to craft a policy for implementation of the fee to be included with revisions to the
current Athletic Field /Facility Use and Allocation Policy. The organizations met eight times
throughout the summer and fall to discuss the most practicable process and timeframe for the fee
implementation. The representatives agreed on the following regulations for the per player fee:
Per Player Fee
Youth Sports Council Organizations are required to pay a per player fee of $10 for resident and
$30 for a non - resident as mandated by City Council in May 2014. Rules for the per player fee
and these organizations are as follows:
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51
1) The per player fee applies to all players and teams that practice or play on City of El Segundo
fields during regular season practices and games.
2) If a portion of the league does not utilize a City of El Segundo field, they are not required to
pay the fee for those players that do not use the field during the regular season.
3) If a league has teams that come from outside the City to participate in regular season games,
then these leagues must either:
a. Pay the per player Fee for all teams (Resident and Non - Resident) in their respective
organization that utilize City fields.
or
b. Pay the per player fee for Resident teams that utilize City fields and in addition pay
these per hour rates:
El Segundo Team vs. Non - Resident Team pay 50% ES Non - Profit Field Rate per hour
Non - Resident Team vs. Non - Resident Team pay full ES Non - Profit Field Rate per hour
The deadline for payment of this fee to the Recreation and Parks Department is two weeks
after the start of that organization's primary season. Refunds for the per player fee will not be
issued once the fee is paid to the City of El Segundo, but an organization can rollover any unused
fee to the next primary season due to player withdrawal upon providing proof to the City that
said player was withdrawn and refunded their league fee. All payments can be made by cash,
check or money order to the Recreation and Parks Department for reservations made throughout
the season.
The revisions to the Athletic Field /Facility Use and Allocation Policy also address many of the
challenges and nuances of each organization, including scheduling teams based outside of El
Segundo for participation in league play and the specific age groups of each leagues that utilize City
fields versus other fields within the City (i.e. school property). The increased annual revenue from
the fees is estimated at $32,000 to $45,000 depending upon enrollment for each organization. City
staff recommends City Council approve the license agreements to establish appropriate guidelines
for the implementation of the new fee.
CITY OF EL SEGUNDO YOUTH SPORTS ORGANIZATIONS
Proposed License Agreements for 3 Years
1. El Segundo AYSO
2. El Segundo Babe Ruth Baseball League
3. El Segundo Girls Softball
4. El Segundo Inline Hockey Association
5. El Segundo Little League
6. El Segundo Lacrosse League
7. South Bay Youth Sports (ES Flag Football)
8. El Segundo United States Youth Volleyball League
M.
LICENSE AGREEMENT BETWEEN THE
CITY OF EL SEGUNDO AND
SOUTH BAY YOUTH SPORTS
(EL SEGUNDO YOUTH FLAG FOOTBALL)
THIS LICENSE is made and executed this 18th day of February, 2015, between the CITY
OF EL SEGUNDO, a municipal corporation ( "CITY "), and SOUTH BAY YOUTH SPORTS
(EL SEGUNDO YOUTH FLAG FOOTBALL), 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 Campus El Segundo Athletic Fields
located at 2201 E. Mariposa and Richmond Field located at the corner of Mariposa Avenue and
Virginia Street ( "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 purpose of operating a youth
sports 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. The CITY may offer other
athletic fields to be utilized if mutually agreed upon by both parties.
3. TERM. Except as provided in Section 4, the term of this license will begin on February 18,
2015 and end on September 30, 2018. 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.
Page 1 of 8
F-IN
5. COMPENSATION. In exchange for the use of the facilities at Property, LICENSEE agrees
to pay CITY in an amount set forth in the attached Exhibit `13," which is incorporated by
reference 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,
Page 2 of 8
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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
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
Page 3 of 8
::,
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
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.
Page 4 of 8
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,
upon deposit in the United States Mail, certified or registered mail, return receipt requested,
postage prepaid, addressed to LICENSEE at:
SOUTH BAY YOUTH SPORTS (EL SEGUNDO FLAG FOOTBALL)
or to CITY at:
Department of Recreation & Parks
Attn. Jesse Bobbett
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.
Page 5 of 8
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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.
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
i
David H. King, Deputy City Attorney
Page 6 of 8
91
Exhibit A
Scope of Services
LICENSEE agrees to provide the following services:
1. Certified and /or trained staff to operate youth and adult sports programs.
CITY agrees that LICENSEE may utilize the approved fields and facilities based on the City's
Athletic Field/Facility Use and Allocation Policy.
Page 7 of 8
W,
Exhibit B
Fee Schedule
Per Player Fee
Youth Sports Advisory Committee Organizations are required to pay a per player fee of $10 for
a resident and $30 for a non - resident as mandated by City Council in May 2014. Rules for the
per player fee and these organizations are as follows:
1.) The per player fee applies to all players and teams that practice or play on City of El
Segundo fields during regular season practices and games.
2.) If a portion of the league does not utilize a City of El Segundo field, they are not required
to pay the fee for those players that do not use the field during the regular season.
3.) If a league has teams that come from outside the City to participate in regular season
games, then these leagues must either:
a. Pay the per player Fee for all teams (Resident and Non - Resident) in their respective
organization that utilize City fields.
or
b. Pay the per player fee for Resident teams that utilize City fields and in addition pay
these per hour rates:
El Segundo Team vs. Non - Resident Team pay 1/2 ES Non - Profit Field Rate per hour
Non - Resident Team vs. Non - Resident Team pay full ES Non - Profit Field Rate per
hour
The deadline for payment of this fee to the Recreation and Parks Department is 2 weeks
after the start of that organization's primary season. Refunds for the per player fee will not
be issued once the fee is paid to the City of El Segundo, but an organization can rollover any
unused fee to the next primary season due to player withdrawal upon providing proof to the
City that said player was withdrawn and refunded their league fee. All payments can be made
by cash, check, or money order to the Recreation and Parks Department for reservations made
throughout the season.
Page 8 of 8
93
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to receive and file this report regarding emergency
work to repair dwelling units at the Park Vista Senior Housing Facility due to water
intrusion 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: $50,000.00)
RECOMMENDED COUNCIL ACTION:
(1) Receive and file this report regarding emergency work to repair dwelling units at the
Park Vista Senior Housing Facility due to water intrusion 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.
(2) Alternatively, discuss and take other possible action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
None
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $50,000.00
Additional Appropriation: No
Account Number(s): 405- 400 - 0000 -6215 (Facilities Maintenance: Repairs and
Maintenance)
ORIGINATED BY: Stephanie Katsouleas, Director of Public Wor091---
REVIEWED BY: Gregg Kovasevich, Assistant City Attorney
APPROVED BY: Greg Carpenter, City Manager .t
BACKGROUND AND DISCUSSION:
On November 18, 2014 City Council approved a contract to complete emergency work to repair
three dwelling units at the Park Vista Senior Housing Facility due to water intrusion caused by
improperly sloped decks. Surveying was completed in January and designs for the repair are
underway which consists of three primary options. They include: 1) modifying the drain
openings to allow for more water infiltration, 2) removing the top layer of the deck and replacing
it with thinner deck/roof materials to increase the slope between the doors and the drains, and 3)
modifying the sliding glass door openings to create a larger lip between the apartment flooring
and the deck, starting with surveying the building's rooftop deck and balconies and reviewing
existing construction drawings. The structural engineer expects to have draft plans for
engineering review by mid - February. Once approved, bidding and award of the construction
portion of the project will commence, which is expected to be in late February.
.,
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 address the water intrusion issues at Park Vista Senior Housing Facility.
95
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: February 17, 2015
AGENDA HEADING: Consent Agenda
Consideration and possible action regarding awarding a contract to Big West Construction
Corporation for construction at 22 homes related to Project RSI 14 -33 (Group 62 of the City's
Residential Sound Insulation Program..
(Estimated construction costs and retention: $1,137,400)
RECOMMENDED COUNCIL ACTION:
1. Award a contract to Big West Construction Corporation;
2. Authorize the City Manager to execute a contract in a form approved by the City Attorney;
and /or
3. Alternatively discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. Bid Log for RSI 14 -33
2. Bidder's Proposal and Statement submitted by Big West Construction Corporation
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $14,000,000
Additional Appropriation: N/A
Account Number(s): 116- 400 - 0062 -8960
ORIGINATED BY: James S. O'Neill, Program Ma?iuilding
REVIEWED BY: Sam Lee, Director of Planning Safety
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
On January 27, 2015 the City Clerk's office opened sealed bids for RSI 14 -33 (Group 62 of the
City's Residential Sound Insulation (RSI) Program). The results were as follows:
1. Big West Construction Corporation .......... .....................$1,034,000
2. Spec Construction Co., Inc ........................ .....................$1,106,252
The Bid submitted by Big West Construction Corporation ( "Big West ") appears responsive.
As City Council is aware, the City received four (4) bids in response to the City's original Notice
Inviting Sealed Bids for the project (RSI 14 -19), but those bids were rejected due to the three
lowest being non - responsive and the presumption that advertising for new bids would result in
multiple responsive bids. The City received no bids in response to the second Notice Inviting
Sealed Bids for the project (RSI 14 -29).
The staff estimate for the project was $631,488.
.,
13
As the lowest bid is more than 10% higher than the staff estimate, concurrence is required of the
Federal Aviation Administration (FAA) and Los Angeles World Airports prior to the City
awarding a contract to the lowest responsible bidder to comply with grant requirements.
Staff is recommending awarding a contract to Big West Construction Corporation ( "Big West")
based on the following:
1. The bid is in response to the City's third Notice Inviting Sealed Bids, and it does not
practical to expect that advertising a fourth Notice Inviting Sealed Bids would result in
better pricing
2. Attempting to re -bid the project would further delay the construction, and delay it to a
time period where additional costs would be required in the form of testing the interior
noise levels of each of the homes to comply with federal requirements set by Program
Guidance Letter (PGL) 12 -09
3. The 22 homes in this project are condominiums at 123 East Oak Avenue, which shows
evidence of significant settling of the building. Although not structurally unsound, this
issue seems to have been overlooked by contractors who originally submitted bids in
October. The issue of settling was a focus of bidders, and the subcontractor responsible
for replacement of windows, during the pre -bid meeting and job walk, and likely was a
factor in higher bid pricing in current bids. This is evidenced by the inclusion of a
subcontractor for "scaffolding & ladders" in the current bid from Big West, whereas their
previous bid did not include such subcontractor costs in their previous bid in October.
Additionally, the increased cost of this project may be a result of the September 30th deadline of
FAA PGL 12 -09. Because RSI Programs are racing to complete as much work as possible in
2015, it appears that existing, historical bidders are bidding on more projects and attempting to
perform more work than they have in the past. This seems to be resulting in additional "start-up
costs" as the existing, historical bidders add new crews and equipment to keep up with the
demand, and assume the risks of adhering to schedules for more projects than typical at any
given time, which also may translate to increase bid pricing.
As such, given the totality of issues facing bidders at this time, and not accounted for in the
original staff estimate, Big West's bid is the best pricing practical to expect for the project.
For all of the reasons stated, staff is recommending the award of a contract to the lowest bidder,
Big West Construction Corporation.
Staff is making the recommendation contingent upon receiving concurrence from the FAA and
LAWA prior to the City Council meeting on February 17th, and if concurrence is not received,
will recommend postponing City Council action until a formal response is received from both
agencies.
The amount requested for the contract is $1,137,400, which represents the Total Bid amount and
an additional 10% for potential change orders related to unforeseen conditions.
97
CITY OF EL SEGUNDO
BID /RFP LOG
BID NO. #RSI 14 -33
City of El Segundo
Residential Sound Insulation Group 62 (Re Re -Bid) (RSI 14 -29 & RSI 14 -19)
Date of BID Opening: Tuesday, January 27 2015
Time of BID Opening: 11:00 A.M.
Place of BID Openinq: City Clerk's Office
COMPANY NAME /ADDRESS
Total BID Amount
1.Spec Construction Co., Inc.
1870 S. Carlos Ave.
Ontario, CA 91761
+ ( �Tll VD
V li
2. Big West Construction
000 IUD
3.
4.
5,
6.
7.
8.
9.
10.
City Clerk's Office
, City Clerk's Office
RSI, Representative
.;
„ • City of El Segundo
' Residential Sound Insulation Program
' RSI 14 -33 (Group 62 Re -Bid)
To the Mayor and City Council
City of El Segundo
350 Main St.
El Segundo, CA 90245
I declare, under penalty of perjury, that I have carefully examined, become familiar with, and
understand all of the requirements of the Contract Documents and conditions under which the
Work must be performed, including the City of El Segundo's current Municipal Code, and am
fully informed as to all conditions and matters which can in any way affect the Work or its cost,
and agree to the following:
To perform all Work in strict conformity with the requirements of the Contract Documents for
Project Number RSI 14 -33
"Residential Sound Insulation Program — Group 62 Re -Bid”
at the following lum sum rice:
RSI
I
ID
PropeM Address
Bid Price
62.01
123 East Oak Avenue, Unit 101
$
S I o
62.16
123 East Oak Avenue, Unit 301
$
62.02
62.09
123 East Oak Avenue, Unit 102
123 East Oak Avenue, Unit 202
$
$
d
© a
90
62.17
62.03
123 East Oak Avenue, Unit 302
123 East Oak Avenue, Unit 103
$
$
O
O
62.10
123 East Oak Avenue, Unit 203
$
,4
62.18
123 East Oak Avenue, Unit 303
$
y
62.04
123 East Oak Avenue, Unit 104
$
tf (4
l o
62.11
123 East Oak Avenue, Unit 204
$
62.05
62.12
62.19
62.06
62.13
62.20
123 East Oak Avenue, Unit 105
123 East Oak Avenue, Unit 205
123 East Oak Avenue, Unit 305
123 East Oak Avenue, Unit 106
123 East Oak Avenue, Unit 206
123 East Oak Avenue, Unit 306
$
$
$
$
$
$
14 t "1 i
F.
1 1c)
O
a
s a
Bidding Form Appendix, B -01 Last Modified: August 14, 2014
Bidder's Proposal and Statement
IZ711T
..
City of El Segundo
Residential Sound Insulation Prograin
RSI 14 -33 (Group 62 Re -Bid)
62.07
123 East Oak Avenue, Unit 107
$
S (
62.14
123 East Oak Avenue, Unit 207
$
_q D
62.21
123 East Oak Avenue, Unit 307
$
TIC
62.08
123 East Oak Avenue, Unit 108
$
� O
62.15
123 East Oak Avenue, Unit 208
$
44
P1
62.22
123 East Oak Avenue, Unit 308
$
Q
`fl i
Total Bid (Contract Sum)
- —_ T-0
(words)
1,D3LL0co.Qo
(figures)
In case of discrepancy between the words and figures, the words must prevail
Contractor Representative: a,_
Si�mtnrc f) [e
Thomas R. Carr
Name (printed or typed)
Title: President
Contractor's State License Number:
NameofFirm: BiQ West Construction Corp. 812085
Address: 15331 Normandie Ave.
Telephone Number:
Irvine, CA 92604
949 - 795 -2219
License Expiration Date:
9-31-7-01
Type of Entity: ❑ Sole Proprietorship ❑ Partnership [3 Corporation* ❑ Other
* If Corporation, evidence of authority to sign must be attached
Bidding Form Appendix B -01 Last Modified: August 14,2014
Bidder's Proposal and Statement <- �( Q,_ 1 277 / ( ;-
( 100
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding awarding a contract to Spec Construction Co., Inc.
for construction at 25 homes related to Project RSI 14 -32 (Group 66 of the City's Residential
Sound Insulation Program..
(Estimated construction costs and retention: $1,488,629)
RECOMMENDED COUNCIL ACTION:
1. Award a contract to Spec Construction Co., Inc.;
2. Authorize the City Manager to execute a contract in a form approved by the City Attorney;
and /or
3. Alternatively discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. Bid Log for RSI 14 -32
2. Bidder's Proposal and Statement submitted by Spec Construction Co., Inc.
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $14,000,000
Additional Appropriation: N/A
Account Number(s): 116- 400 - 0066 -8960
ORIGINATED BY: James S. O'Neill, Program Manager 0
REVIEWED BY: Sam Lee, Director of Planning and wilding Safety
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
On January 22, 2015 the City Clerk's office opened sealed bids for RSI 14 -32 (Group 66 of the
City's Residential Sound Insulation (RSI) Program). The results were as follows:
1. Spec Construction Co., Inc ......................... ....................$1,353,299
2. Big West Construction Corporation .......... .....................$1,390,014
The Bid submitted by Spec Construction Co., Inc. ( "Spec ") appears responsive.
As City Council is aware, the City received one (1) bid in response to the City's original Notice
Inviting Sealed Bids for the project (RSI 14 -24), but that bid was rejected and the presumption
that advertising a new Notice Inviting Sealed Bids would result in multiple responsive bids.
The staff estimate for the project was $984,342.50.
As the lowest bid is more than 10% higher than the staff estimate, concurrence is required of the
Federal Aviation Administration (FAA) and Los Angeles World Airports prior to the City
awarding a contract to the lowest responsible bidder to comply with grant requirements.
101
Staff is recommending awarding a contract to Spec Construction Co., Inc. ( "Spec ") based on the
following:
1. The bid is in response to the City's second Notice Inviting Sealed Bids, and advertising a
third Notice Inviting Sealed Bids would not likely result in better pricing
2. Attempting to re -bid the project would further delay the construction, and delay it to a
time period where additional costs would be required in the form of testing the interior
noise levels of each of the homes to comply with federal requirements set by Program
Guidance Letter (PGL) 12 -09
Additionally, the increased cost of this project may be a result of the September 30th deadline of
FAA PGL 12 -09. Because RSI Programs are racing to complete as much work as possible in
2015, it appears that existing, historical bidders are bidding on more projects and attempting to
perform more work than they have in the past. This seems to be resulting in additional "start-up
costs" as the existing, historical bidders add new crews and equipment to keep up with the
demand, and assume the risks of adhering to schedules for more projects than typical at any
given time, which also may translate to increase bid pricing.
As such, given the totality of issues facing bidders at this time, and not accounted for in the
original staff estimate, Spec's bid is the best pricing practical to expect for the project.
For all of the reasons stated, staff is recommending the award of a contract to the lowest bidder,
Spec Construction Co., Inc.
Staff is making the recommendation contingent upon receiving concurrence from the FAA and
LAWA prior to the City Council meeting on February 17th, and if concurrence is not received,
will recommend postponing City Council action until a formal response is received from both
agencies.
The amount requested for the contract is $1,488,629, which represents the Total Bid amount and
an additional 10% for potential change orders related to unforeseen conditions.
102
CITY OF EL SEGUNDO
BID /RFP LOG
BID NO. #RSI 14 -32
City of El Segundo
Residential Sound Insulation Group 66 (Re -Bid) (RSI 14 -24)
Date of BID Opening: Thursday, January 22, 2015
Time of BID Opening: 11:00 A.M.
Place of BID Opening: Cltv Clerk's Office
COMPANY NAME /ADDRESS
Total BID Amount
1.Spec Construction Co., Inc.
Carlos Ave.
Ontario, , CA 91761
0�
I ' .�� -) ��� l
2. Big West Construction Corp.
15331 Normandie
Irvine, CA 92604
L�-
3.
4.
5.
6.
7.
8.
9.
10.
�
Staff Present: 0/
FO
City Clerk's Office
__1 City Clerk's Office
RSI, Representative
103
City of El Segundo
Residential Sound Insulation
RSI 14 -32 (Group 66 Re -Bid)
To the Mayor and City Council
City of El Segundo
350 Main St.
El Segundo, CA 90245
I declare, under penalty of perjury, that I have carefully examined, become familiar with, and
understand all of the requirements of the Contract Documents and conditions under which the
Work must be performed, including the City of El Segundo's current Municipal Code, and am
fully informed as to all conditions and matters which can in any way affect the Work or its cost,
and agree to the following:
To perform all Work in strict conformity with the requirements of the Contract Documents for
Project Number RSI 14 -32
"Residential Sound Insulation Program — Group 66 Re -Bid"
at the followint lump sum price:
RSI
ID
Property Address
Bid Price
66.01
521 Hillcrest Street
$ 61,287.00
66.02
617 West Mariposa Street
$ 60,166.00
66.03
637 Hillcrest Street
$ 66,146.00
66.04
622 West Palm Avenue
$ 95,011.00
66.05
308 West Oak Avenue
$ 46,999.00
66.06
215 West Palm Avenue, Unit 304
$ 41,479.00
66.07
527 Standard Street
$ 65,571.00
66.08
531 Standard Street
$ 41,996.00
66.09
622 Arena Street
$ 59,476.00
66.10
521 Irene Court
$ 50,219.00
66.11
641 Bungalow Drive
$ 48,465.00
66.12
647 Bungalow Drive
$ 45,619.00
66.13
1205 East Oak Avenue
$ 47,631.00
66.14
1233 East Oak Avenue
$ 49,500.00
66.15
1406 East Walnut Avenue
$ 47,746.00
66.16
1629 East Palm Avenue, Unit 1
$ 55,192.00
Bidding Form
Bidder's Proposal and Statement
Appendix B -01 Last Modified: August 14, 2014
104
City of El Segundo
Residential Sound Insulation Program
Y- RSI 14 -32 (Group 66 Re -Bid)
66.17
1629 East Palm Avenue, Unit 2
$ 51,369.00
66.18
1629 East Palm Avenue, Unit 3
$ 51,484.00
66.19
1629 East Palm Avenue, Unit 4
$ 51,484.00
66.20
1629 East Palm Avenue, Unit 5
$ 56,227.00
66.21
1629 East Palm Avenue, Unit 6
$ 56,572.00
66.22
1629 East Palm Avenue, Unit 7
$ 51,944.00
66.23
1629 East Palm Avenue, Unit 8
$ 51,944.00
66.24
1629 East Palm Avenue, Unit 9
$ 47,574.00
66.25
1629 East Palm Avenue, Unit 10
$ 52,198.00
Total Bid (Contract Sum)
One - Million, Three - Hundred & Fifty -Three Thousand, Two- Hundred & Ninty -Nine.
(words)
$ 12353,299.00
(figures)
In case of discrepancy between the words and figures, the words must prevail
Contractor Representative:
asen Del.aFosse
Name (printed or typed)
Title: Vice President
01/21/2015
Date
Contractor's State License Number:
Name of Firm: Spec Construction Co., Inc. 419626
Address: 1870 S. Carlos Ave. License Expiration Date:
Ontario, CA 91761 08/31/2015
Telephone Number: 909 - 947- 4601
Type of Entity: ❑ Sole Proprietorship ❑ Partnership ® Corporation* ❑ Other
Bidding Form
Bidder's Proposal and Statement
* If Corporation, evidence of authority to sign must be attached
Appendix B-01 Last Modified: August 14, 2014
105
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding awarding a contract to Spec Construction Co., Inc.
for construction at 30 homes related to Project RSI 14 -27 (Group 69 of the City's Residential
Sound Insulation Program.
(Estimated construction costs and retention: $1,976,688)
RECOMMENDED COUNCIL ACTION:
1. Award a contract to Spec Construction Co., Inc.;
2. Authorize the City Manager to execute a contract in a form approved by the City Attorney;
and /or
3. Alternatively discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1. Bid Log for RSI 14 -27
2. Bidder's Proposal and Statement submitted by Spec Construction Co., Inc.
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $14,000,000
Additional Appropriation: N/A
Account Number(s): 116 - 400 - 0069 -8960
ORIGINATED BY: James S. O'Neill, Program Manager
REVIEWED BY: Sam Lee, Director of Planning an wilding Safety
APPROVED BY: Greg Carpenter, City Manager aA
BACKGROUND AND DISCUSSION:
On January 27, 2015 the City Clerk's office opened sealed bids for RSI 14 -27 (Group 69 of the
City's Residential Sound Insulation (RSI) Program). The results were as follows:
1. Spec Construction Co., Inc ........................ .....................$1,796,989
2. Big West Construction Corporation ............ ...................$1,800,000
The Bid submitted by Spec Construction Co., Inc. ( "Spec ") appears responsive.
The staff estimate for the project was $934,392.
As the lowest bid is more than 10% higher than the staff estimate, concurrence is required of the
Federal Aviation Administration (FAA) and Los Angeles World Airports prior to the City
awarding a contract to the lowest responsible bidder to comply with grant requirements.
Staff is recommending awarding a contract to Spec Construction Co., Inc. ( "Spec ") based on the
following:
106
1. The bids received around the same time for other projects are also significantly higher
that staff estimates, seemingly justifying an adjustment to the estimating formulas
2. Attempting to re -bid the project would further delay the construction, and delay it to a
time period where additional costs would be required in the form of testing the interior
noise levels of each of the homes to comply with federal requirements set by Program
Guidance Letter (PGL) 12 -09
Additionally, the increased cost of this project may be a result of the September 30th deadline of
FAA PGL 12 -09. Because RSI Programs are racing to complete as much work as possible in
2015, it appears that existing, historical bidders are bidding on more projects and attempting to
perform more work than they have in the past. This seems to be resulting in additional "start-up
costs" as the existing, historical bidders add new crews and equipment to keep up with the
demand, and assume the risks of adhering to schedules for more projects than typical at any
given time, which also may translate to increase bid pricing.
As such, given the totality of issues facing bidders at this time, and not accounted for in the
original staff estimate, Spec's bid is the best pricing practical to expect for the project.
For all of the reasons stated, staff is recommending the award of a contract to the lowest bidder,
Spec Construction Co., Inc.
Staff is making the recommendation contingent upon receiving concurrence from the FAA and
LAWA prior to the City Council meeting on February 17th, and if concurrence is not received,
will recommend postponing City Council action until a formal response is received from both
agencies.
The amount requested for the contract is $1,976,688, which represents the Total Bid amount and
an additional 10% for potential change orders related to unforeseen conditions.
107
CITY OF EL SEGUNDO
BID /RFP LOG
BID NO. #RSI 14 -27
City of El Segundo
Residential Sound Insulation Group 69 (RSI 14 -27)
Date of BID Opening: Tuesday, January 27, 2015
Time of BID Opening: 11:30 A.M.
Place of BID Opening: City Clerk's Office
COMPANY NAME /ADDRESS
Total BID Amount
1.Spec Construction Co., Inc.
1870 S. Carlos Ave.
Ontario, CA 91761
2. Big West Construction
Offiv
3.
4.
5.
6.
7,
8.
--
9.
10.
Staff Present;
M
FORMSO MOPEN1
, City Clerk's Office
, City Clerk's Office
RSI, Representative
1:,
City of El Segundo
Residential Sound Insulation
RSI 14 -27 (Group 69)
To the Mayor and City Council
City of El Segundo
350 Main St.
El Segundo, CA 90245
I declare, under penalty of perjury, that I have carefully examined, become familiar with, and
understand all of the requirements of the Contract Documents and conditions under which the
Work must be performed, including the City of El Segundo's current Municipal Code, and am
fully informed as to all conditions and matters which can in any way affect the Work or its cost,
and agree to the following:
To perform all Work in strict conformity with the requirements of the Contract Documents for
Project Number RSI 14 -27
"Residential Sound Insulation Program — Group 69"
at the followine lunlra sum thrice:
RSI
ID
Property Address
Bid Price
69.01
690 West Palm Avenue
$ 70,115.00
69.02
404 West Palm Avenue
$ 55,215.00
69.03
645 Virginia Street
$ 57,265.00
69.04
438 Virginia Street
$ 57,215.00
69.05
506 Concord Street
$ 61,365.00
69.06
525 Richmond Street
$ 53,615.00
69.07
525 '/z Richmond Street
$ 39,880.00
69.08
215 West Palm Avenue, Unit 305
$ 41,600.00
69.09
116 West Oak Avenue
$ 56,965.00
69.10
608 Arena Street
$ 77,280.00
69.11
754 Sheldon Street
$ 50,980.00
69.12
506 East Oak Street
$ 57,665.00
69.13
518 East Oak Street
$ 58,165.00
69.14
511 East Palm Avenue
$ 55,765.00
69.15
513 East Palm Avenue
$ 49,765.00
69.16
614 Lomita Street
$ 61,515.00
Bidding Form
Bidder's Proposal and Statement
Appendix B -01 Last Modified: August 14, 2014
109
City of El Segundo
Residential Sound Insulation
RSI 14 -27 (Group 69)
69.17
526 Lomita Street
$ 63,165.00
69.18
530 Maryland Street
$ 77,915.00
69.19
540 Maryland Street
$ 60,265.00
69.20
614 Maryland Street
$ 61,965.00
69.21
715 Center Street
$ 58,165.00
69.22
828 Center Street
$ 102,315.00
69.23
1192 East Mariposa Street
$ 55,265.00
69.24
1225 East Maple Avenue
$ 66,065.00
69.25
748 California Street
$ 48,984.00
69.26
1505 East Oak Avenue
$ 6905.00
69.27
1507 East Sycamore Avenue
$ 58,490.00
69.28
1507 '/z East Sycamore Avenue
$ 57,130.00
69.29
765 Washington Street
$ 54,015.00
69.30
1564 East Palm Avenue
$ 59,215.00
Total Bid (Contract Sum)
One - Million, Seven - Hundred & Ninty -Six Thousand, Nine - hundred & E €ghty -Nine.
(words)
$ 1796,_989.00
(figures)
In case of discrepancy between the words and figures, the
Contractor Representative:
asen DeLaFosse
Name (printed or typed)
Title: Vice President
Name of Firm: Spec Construction Co., Inc.
Address: 1870 S. Carlos Ave.
Ontario, CA 91761
01/26/2015
Date
Contractor's State License Number:
419626
License Expiration Date:
08/31/2015
Bidding Form Appendix B -01 Last Modified: August 14, 2014
Bidder's Proposal and Statement 110
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA STATEMENT AGENDA HEADING: New Business
AGENDA DESCRIPTION:
Consideration and possible action regarding the Fiscal Year 2013 -2014 Yearend Report
and FY 2014 -2015 First Quarter Financial Review. (Fiscal Impact: none)
RECOMMENDED COUNCIL ACTION:
(1) Receive and file FY 2013-2014 Yearend and FY 2014 -2015 First Quarter Financial
Review.
(2) Alternatively discuss and take other action related to this item
ATTACHED SUPPORTING DOCUMENTS:
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $0
Additional Appropriation: N/A
Account Number(s): none
ORIGINATED BY: Angelina Garcia, Fiscal Services Manager
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
Fiscal Year 2013 -2014 Yearend
General Fund Year -End Results
The Fiscal Year 2013 -2014 General Fund operations resulted in Total Revenues of $62,856,800,
Expenditures of $59,512,700, resulting in an increase to Fund Balance of $3,344,100. This is an
increase of $3,052,800 to the projected surplus of $290,300 that was reported at the September
16, 2014 Second Budget Hearing. At this time, revenues expected to end the year at $59,708,300
and expenditures at $59,417,000.
Revenues(taxes and fees) continued to improve over the summer and during the last quarter of
the fiscal year revenues increased $3,148,500 over the yearend estimate that was provided at the
September 2014 budget adoption Council Meeting. Generally, the City experienced significant
growth over this period in Charges for Services, Sales and Use Tax and Transient Occupancy
Tax. UUT Gas and Electric have both had positive improvements based on the stabilization of
the price of natural gas and an increase in consumption.
16
111
Table l — Summary of General Fund Operations for Yearend 9/30/14:
General Fund
FY2013 -2014
I FY2013 -2014
$ Change in
Operations
Year -End Estimate
I Year -End Actual
Estimate
Revenues
$59,708,300
62,856,800
3,148,50
Expenditures
59,417,000
59,512,700
95,70
Surplus
291,300
3,344,100
3,052,800
Table 2 — FY 2013 -2014 Yearend Revenues — Estimates v. Actual
Revenue Source
3
F2004
Estimate
FY2013-
2014 Year-
End Actual
$Change
in
Estimate
Chan g e
Estimate
Business License
$10,900,000
10,965,900
65,900
1%
Sales & Use Tax
7,450,000
8,290,900
840,900
11%
Sales Tax in Lieu
2,006,800
2,006,800
0
0%
Property Tax
6,655,000
6,758,000
103,000
2%
Transient Occupancy (TOT)
5,375,000
5,964,400
589,400
11%
Charges for Services
4,031,800
4,882,400
850,600
21%
Electric Utility Tax
2,985,000
3,098,900
113,900
4%
Franchise Tax
3,075,000
3,098,400
23,400
1%
Cogeneration Electric
1,590,000
1,583,000
-7,000
0%
License & Permits
1,764,900
1,759,600
-5,300
0%
Gas Utility Tax
2,900,000
3,215,200
315,200
11%
Tax Resolution Agreement
5,750,900
5,750,900
0
0%
Interest on Investments
255,400
324,800
69,400
27%
Other Revenues
4,568,500
4,957,600
389,100
9%
Total General Fund
59,308,300
62,656,800
3,348,500
5.65%
Revenues, Net of Transfers
Transfers In
400,000
200,000
- 200,000
- 50.00%
Total General Fund
$59,708,300
$62,856,800
3,148,500
5.27%
Revenues
As noted in the table above, the major changes to estimates in revenues are as follows:
- Sales & Use Tax — The City meets on a quarterly basis with its sales and use tax consultants
to review this revenue stream. The primary reasons for the increase in this category during
the fourth quarter were due to several large positive fund transfers and audit adjustments in
El Segundo's favor from the State Board of Equalization. In addition, there were several
larger than expected sales increases and use tax increases due to large purchases of
equipment by in -city businesses. The City has no way of tracking these large purchases by
in -city businesses to determine when these additional allocations will be received by the
City. All of these factors caused sales & use tax to outperform its original yearend
projections.
F)
112
- Transient Occupancy — This tax increased from yearend estimate by approximately
$589,400. City staff corresponds with the major hotels on a regular basis to review their
revenue projections based on historical and market indicators. This category can be difficult
to project actual revenues due to the unknown TOT exemptions taken by State and Federal
employees. The new owners of one of the City's largest hotels released a large block of
rooms for occupancy not normally available during FY 2013 -14. In addition, this same
hotel enhanced its marketing strategy which led to approximately $350,000 in increased
revenue for the fiscal year due to an extremely high occupancy rate. Overall, this tax
category experienced occupancy and room rates much higher than projected for the fiscal
year during the final quarter.
- Charges for Services — Throughout the course of the 2013 -2014 fiscal year, the City
continued to experience positive growth in plan check fees. The summer months
experienced a higher volume of plan check requests, which helped the increase in fees
collected of approximately $738,700 higher than anticipated.
Gas Utility Tax — This category also came in over $315,200 higher than anticipated in the
earlier estimates, primarily due to the local power plant's increase in usage in the last two
months of the fiscal year. Going forward, tax estimation for this category will continue to be
unpredictable as the local power plant currently does not have a contract with Southern
California Edison, and therefore, cannot provide scheduled usage estimates.
Table 3 — FY 2013 -2014 Yearend Expenditures — Estimates v. Actual
Overall, expenditures within the General Fund came in $95,700 higher than expected. During
this period Salaries and Benefits ended the year $292,600 below yearend estimates primarily due
to a number of vacancies in various departments. The following costs ended the year over the
projected estimates:
- Electric Utility Charges — This category came in approximately $27,400 higher than
estimated, primarily in the Traffic Safety Division.
- Water Utility Charges — This category came in approximately $80,100 higher than expected,
primarily in the Parks Department. This increase was due to higher than expected usage on
parks facilities.
- The remaining $281,200 can be attributed to increases in contractual services and
professional services used to fill short-term personnel needs. This overage is offset by the
salary and benefit saving from those vacant positions.
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llfiIn [MJM WMI) MY411 C WO
Department
Yearend Estimate
13/14
Actuals
13/14
Over (Under)
Estimate
Elected Officials
$ 980,000
918,900
(61,100)
Administrative Support
4,531,300
4,272,600
(258,700)
Police
16,977,900
17,319,100
341,200
Fire
14,388,900
14,087,500
(301,400)
Communications Center
1,389,500
1,362,200
(27,300)
Planning Building Safety
2,855,700
2,501,400
(354,300)
Public Works
5,901,200
5,513,300
(387,900)
Recreation and Parks
5,093,600
5,046,200
(47,400)
Library
2,361,400
2,159,300
(202,100)
Nondepartment
4,591,100
4,788,500
197,400
Transfers to Other Funds
346,400
1,543,700
1,197,300
Total General Fund
Expenditures
$ 59,417,000
59,512,700
95,700
Table 4 Sunimary of Expenditures by host Cateory;
Salaries & Benefits $46,207,800 $45,915,200 ($292,600)
Nonpersonnel 13,209,200 13,597,500 388,300
$59,417,000 $59,512,700 $95,700
114
FY 2013 -2014 Yearend Revenues & Expenditures - Summary
As was illustrated in Table 1, the yearend results show an increase to fund balance of
$3,344,100. Table 5 below illustrates the balancing of the FY 2013 -14 Budget, the Required
Reserve Deposit, and the estimated amounts available for FY 2014 -2015 Adopted Shortfall, and
the excess General Fund Surplus:
Table 5 — General Fund Reserve.
General Fund Yearend Reserve
Beginning Fund Balance 10/1/13: $
15,360,208
Less: Required Reserves and Desi ations:
(2,476,750)
Available Fund Balance: $
12,883,458
13/14 Revenues: $
62,856,800
13/14 Expenditures:
59,512,700
9/30/14 Projected Increase to Fund Balance:
3,344,100
Subtotal: 16,227,558 1
Calculation of Required Reserve:
FY 2014 -2015 General Fund Revenues: 60,642,700
Fund Balance Reserve Funded Level: 18%
Required Reserve, 9/30/14: 10,915
Over (Under) Reserve:
Excess Reserve to Fund for:
Adopted Revenues 9/30/15:
Adopted Expenditures 9/30/15:
Projected Shortfall:
Projected Amounts Available @ 9/30/15:
$ 5,311,872
60,642,700
64,043,100
(3,400,400)
$ 1,911,472
The projected amounts available of $1,911,500 will be revisited in the Spring once the Midyear
projections are calculated and staff obtains a better estimate of where the FY 2014 -2015 General
Fund revenues and expenditures will end.
5
115
Other Funds
Internal Service Funds
The budgets in the Internal Service Funds, which include Equipment Replacement, General
Liability, and Workers' Compensation, are all in balance. These funds are used to accumulate
and allocate costs internally among the City's various functions.
The Equipment Replacement Fund collected 100% of the annual equipment replacement charge
from all departments as budgeted.
The General Liability and Workers' Compensation Funds have been funded at the actuarially
determined expected rate.
Enterprise Funds
The budgets in the Water and Sewer are in balance.
The Golf Course Fund made a repayment to the General Fund of $37,600. The repayment to the
General Fund was scheduled for $200,000. However, there was insufficient cash to cover the
entire payment. Below is a summary of Golf Course Operations for the year ended September
30, 2014:
Operating Revenues $ 2,047,100
Operating Expenditures 2,152,100
Net Operating Loss: $ (105,000)
Collectively, these are all separate funds where the City charges a fee to customers to cover all or
most of the costs of services it provides. Although the funds currently are reporting positive
annual results, the long -term capital asset replacements are still underfunded.
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116
First Quarter Financial Review Fiscal Year 2014 -2015
Staff has reviewed all revenues and expenditures for the first quarter of Fiscal Year 2014 -2015,
with an emphasis on the General Fund, to determine if all sources and uses are on target with the
originally adopted budget.
Staff analyzed the revenues for the first quarter compared to historical averages of the last 8
fiscal years and most revenue streams were tracking fairly close with historical averages.
General Fund Revenues
General Fund revenues through the end of the first quarter are at 17.8% of total FY 2014 -2015
budget. The following is a list of major General Fund revenues, and the performance of each
source through the first quarter:
Table 6 — FY 2014 -2015 Revenues — First
Quarter
Current
Variance
Received
Year Q1
to Prior
Adopled
QI FY
% Received
Prior Year Ql
FY 2014-
QTR Over/
% change to
Budget FY
2014-
Ql
Revenue Source
FY2013 -2014
2015
(Under)
SPLY*
2014 -2015
2015
Historically
Business License
168,734
955,520
786,786
466.29%
11,118,000
8.59%
5.98%
Sales & Use Tax
1,820,835
2,141,444
320,609
17.61%
7,942,500
26.96%
23.02%
Sales Tax in Lieu
0
0
0
0.00%
2,758,000
0.00%
2.29%
Property Tax
2,461,254
2,413,260
(47,994)
-1.95%
6,356,600
37.96%
36.41%
Tax Resolution Agreement
0
0
0
0.00%
5,108,300
0.00%
0.00%
Transient Occupancy (TOT)
1,180,420
1,241,983
61,563
5.22%
5,459,200
22.75%
21.34%
Charges for Services
1,439,191
954,498
(484,693)
- 33.68%
4,720,500
20.22%
24.83%
Electric Utility Tax
814,034
838,960
24,926
3.06%
3,050,000
27.51%
25.72%
Franchise Tax
90,146
80,092
(10,054)
- 11.15%
3,075,000
2.60%
2.73%
Cogenerated Electric
359,954
357,323
(2,631)
-0.73%
1,690,000
21.14%
23.89%
License & Permits
600,891
359,452
(241,439)
- 40.18%
1,720,000
20.90%
27.50%
Gas Utility Tax
514,721
811,667
296,946
57.69%
3,000,000
27.06%
20.01%
Interest on Investments
52,254
63,259
11,005
21.06%
267,000
23.69%
27.60%
Other Revenues
518,587
520,396
1,809
.35%
3,977,600
13.08%
18.80%
Total General Fund Revenues
Net of Transfers
10,021,021
10,737,854
716,833
7.15%
60,242,700
17.82%
16.69%
Transfers In
50,000
50,000
0
0%
400,000
Total General Fund Revenues
$ 10,071,021
10,787,854
716,833
7.12%
60,642,700
0
17.82 /0
0
16.69 /o
* NPLY — Same period last year
Business License Tax is the City's largest General Fund revenue source, accounting for 18.33%
of total estimated revenues. The majority of this revenue stream is collected in January and
February, and based on the preliminary numbers through the end of January this category
appears to be on target to meet the annual budget.
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117
Sales & Use Tax is estimated to generate approximately $7.9 million this fiscal year and is the
City's second largest revenue source. As of December 31, 2014, sales tax revenue is 26.96% of
budget received.
Property Tax is currently 1.95% or $48,000 less over the same period last year. Although the
City has experienced a decrease to the same period last year, it is still expected to be on target to
meet the FY 2014 -2015 budget.
Transient Occupancy Tax (TOT) is approximately 5.22% or $61,600 above the same period
last year, with 22.75% of budget received. This revenue is rebounding as the economy improves
due to increased occupancies and room rates. At this time TOT seems to be on target to meet
budget. Staff will continue to monitor and report any changes due to the economic conditions at
mid -year.
Charges for Services includes Zoning and Planning fees, Plan Check fees, Plan Retention fees,
Energy Plan Check fees, and Planning Service fees and have a combined budget of $4,720,500.
The City has received $954,500 or 20.22% of budget through the first quarter. This is a 33.68%
or $484,700 decrease over the same period last year. According to the Planning and Building
Safety Department, there has been a decrease in plan check fees during the 1 st quarter compared
to the same quarter last year, but is anticipated to pick up during the remainder of the fiscal year.
At this time staff is estimating this revenue group to end the year on target.
Electric Utility Users Tax is only slightly higher than the same period last year. Additionally,
27.51% of revenue has been received and it is projected that this revenue source will make
budget through this fiscal year.
Franchise Tax is currently on target when compared to the same period last year. The City has
received 2.6% of total revenues in the first quarter, with the majority of this revenue coming
from two payments received in April. Staff expects this revenue to be to meet budget at yearend.
Cogenerated Electric is within $2,600 from revenues received in the same period last year with
21.14% of budget received. The fluctuation of the price of natural gas is the biggest impact
affecting the price per megawatt hour. Electricity pricing was higher and volume was higher as
the fourth Cogen train has been fully implemented. This revenue category expects to meet
estimated revenue projections at year end.
License and Permits recorded revenues of $359,500 or 20.9% of budget for the first quarter.
According to the Planning and Building Safety Department, this decrease is primarily due to a
decrease in building, plumbing, electrical, street, and mechanical permits during the first quarter
compared to the same period last year. This revenue stream will be analyzed at midyear to
determine if it is still on target for the original estimated budget amount.
Gas Utility Tax is currently at 27.06% of budget received. This is $297,000 or 57.69% higher
than the same period last year. The primary factor for the increase is the usage at the power plant
is up because the new power plant has been fully operational this fiscal year compared to same
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118
period last year. This category will be watched closely by focusing on the price of natural gas
along with consumption.
Interest on Investments for the quarter ending December 31, 2014 is tracking according to plan
with $63,300 in general fund income received for the period net of bank fees. Earnings continue
to improve due to low interest rate yields for investments with maturities between 1 -day to 5-
years. Currently, the City's portfolio is invested in Local Agency Investment Funds (LAIF —
2.98% of portfolio value), Federal Agency Issues (57.20 %), negotiable Certificates of Deposit
(28 %), and corporate securities (12.51 %) with an overall effective yield of 0.93 %.
General Fund Expenditures
The General Fund expenditures through December 31St, 2014 are at 26.42% of the adopted
budget. It is important to mention here that historically the first quarter numbers track slightly
higher than the remainder of the year due primarily to pay outs of vacation and sick leave
balances for retirements and resignations.
Table 7 — FY 2014 -2015 General Fund Expenditures — First Quarter
Elected Officials and Administrative Support Services
This category, which consists of the City Council, City Clerk, City Treasurer, City Manager's
office, Finance and Human Resources, is currently on target with budget.
Nondepartment
Nondepartment expenditures are currently at 40.67% of the adopted budget. Historically, this
department's first quarter expenditures exceed the 25% mark due to the payouts of overaccrued
sick and vacation balances. For the quarter ended December 31, 2014, approximately $803,000
in sick and vacation cashouts were recorded. This is 23% over the adopted budget of $780,000.
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119
1st Quarter Fiscal
Year 2014-2015
Expend.
Adopted Budget
Fiscal Year 2014-
2015
% Budget
Expended
Elected Officials
$215,750
1,016,000
21.24%
Administrative Support
1,071,200
4,457,000
24.03%
Police
4,957,300
17,999,600
27.54%
Fire
3,946,200
14,160,100
27.87%
Communications Center
329,300
1,398,300
23.55%
Planning /Building Safety
484,100
2,996,700
16.15%
Public Works
1,366,050
5,925,600
23.05%
Recreation and Parks
1,122,100
5,082,200
22.08%
Library
556,700
2,188,400
25.44%
Nondepartment
1,725,600
4,242,800
40.67%
Transfers to Other Funds
1,144,100
4,576,400
25.00%
Total General Fund Expenditures
$ 16,918,400
64,043,100
26.42%
Elected Officials and Administrative Support Services
This category, which consists of the City Council, City Clerk, City Treasurer, City Manager's
office, Finance and Human Resources, is currently on target with budget.
Nondepartment
Nondepartment expenditures are currently at 40.67% of the adopted budget. Historically, this
department's first quarter expenditures exceed the 25% mark due to the payouts of overaccrued
sick and vacation balances. For the quarter ended December 31, 2014, approximately $803,000
in sick and vacation cashouts were recorded. This is 23% over the adopted budget of $780,000.
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119
At the time the FY 2014 -2015 budget was adopted, staff estimated the balances that were
expected to be cashed out based on a historical average prior to the 2011 concession which froze
this expenditure for most labor groups. Looking at the Nondepartment budget in total, staff
expects the expenditures during the remainder of the year to be on target with budget.
Public Safety
The Fire Department in total is on target with budget. First - quarter expenditures totaled
$3,946,200 or 27.87% of budget.
The Police Department in total is on target with budget. First - quarter expenditures totaled
$4,957,300 or 27.54% of budget.
Historically, expenditures in these two departments come in slightly higher in the first quarter
due to the Holiday Pay being paid out in December of each year. For Fiscal Year 2014 -2015,
total Holiday Pay amounted to $676,400. Additionally, overtime appears to be on target with
budget as of December 2014.
Planning and Building Safety
Expenditures for the first quarter are $484,100 or 16.15% of the budget. This department
continues to adjust staff with consultant resources which will enable them to reduce expenditures
if necessary due to the uncertain economic conditions.
Public Works
This function's General Fund divisions consist of Government Buildings, Engineering, Street
Services, Street Maintenance, Traffic Safety, Solid Waste Recycling, Wastewater, Storm Drains,
Equipment Maintenance and Administration. At the end of the first quarter this department is on
target with actual expenditures at $1,366,050 or 23.05% of budget.
Recreational, Cultural and Information Services
The Recreation, Cultural and Information Services function includes the Recreation and Parks
Department and the Library Department.
At the end of the first quarter the Recreation and Parks department is right on target with actual
expenditures at $1,122,100 or 22.08% of budget.
Library Services is on target with budget at $556,700 or 25.44% of expenditures realized though
the first quarter.
Summary
With 25% of the fiscal year complete, General Fund expenditures are at 26.42% of budget and
revenues are 17.8% of budget and both are generally on target.
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120
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA ITEM STATEM AGENDA HEADING: New Business
AGENDA DESCRIPTION:
Discussion and possible action regarding an appeal from the El Segundo Council of Parents and
Teachers, Inc., to adjust their given score indicating the fee waiver percentage for city support services
associated with the Run for Education. (Fiscal Impact: Estimated $3,183)
RECOMMENDED COUNCIL ACTION:
1. Discussion regarding the appeal from the El Segundo Council of Parents and Teachers, Inc., to
adjust their given score indicating the fee waiver percentage; and,
2. Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Original Scorecard for Run for Education
2. Scorecard Summary as approved by City Council July 15, 2014
3. Letter of Appeal from El Segundo Council of Parents and Teachers, Inc.
FISCAL IMPACT: Estimated $3,183
Amount Budgeted: $3,183
Additional Appropriation: Yes
Account Number(s): Various Run for Education Accounts (702-400-5416-****)
ORIGINATED BY: Meredith Petit, Director of Recreation and Parks
REVIEWED BY: Meredith Petit, Director of Recreation and Parks
A R
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND & DISCUSSION:
At the regular City Council meeting July 15, 2014, the City Council approved a new process of identifying
amounts in which the City would waive expenses as a result of supporting non - profit organizations'
community special events. As part of the process, a City Council appointed sub - committee created a "City
of El Segundo Fee Waiver Scorecard" that assigned point values in the following categories: Type of
Organization, Fundraising Status, Target Audience, Cost to Participate, Perceived Community Benefit, and
Impact. The total score was then placed on a scale that indicated the percentage of the fees to be waived by
the City.
At the time of City Council approval, the Run for Education event was assigned a score of 15 out of 25 (see
Attachment #1). As the Scorecard Summary (Attachment #2) illustrates, a score of 15 placed the event in
Level IV. The fee waiver levels are as follows:
Level I: Non - Fundraising /Free to Attend = 100 % Fee Waiver
Level II: Scores 20 -25 = 75% Fee Waiver
Level III: Scores 16 -19 = 50% Fee Waiver
Level IV: Scores 11 -15 = 25% Fee Waiver
121
17
On February 5, 2015, the El Segundo Council of Parents and Teachers, Inc., submitted a letter to the
Department of Recreation and Parks requesting that the City Council consider adjusting the score in three
of the scoring categories: Type of Organization, Target Audience, and Perceived Community Benefit. The
justification for score changes are presented in the Letter of Appeal (Attachment #3). With just one of the
adjustments as requested, the event would enter into Level III and receive a 50% Fee Waiver.
The estimated City expenses for the Run for Education are $12,732. A Special Events account has been set
up by the Finance Department to track expenses for all community special events and under the original
25% fee waiver the City has budgeted approximately $3,183 to support the event. The City would incur
another $3,183 by increasing the fee waiver to 50% of the total expenses to support the Run for Education.
122
CITY OF EL SEGUNDO FEE WAIVER SCORECARD
EVENT NAME & DATE: PTA - Run for Education 5K & 10K
Category I
Comments
Score
ORGANIZATION INFORMATION
This section considers the organization's financial statals and the percentage
of the or anization's funds that are used directly for social programs.
Type of Organization
Resident/ El Segundo Non - Profit (10)
El Segundo School Org. (8)
g
Non - Resident Non -Profit (6)
Resident Commercial (4)
Non - Resident Commercial (2)
Other (0)
EVENT /PROGRAM INFORMATION
This section considers whether or not the event is a fundraiser.
It also considers ivho the event or program is desi ned for.
Fundraising Status
Non- fundraising (4)
3
Fundraising for ES Org (3)
Fundraising for other (1)
Target Audience
(Defined as the population that the event or
program is intended to serve.)
3
El Segundo Residents (4)
General Public (3)
Exclusive Use (0)
Cost to Participate
Free to attend (2)
0
Fee charged (0)
CONSIDERATIONS
This section considers the perceived benefits and the impacts
of the event or program to the residents of the City El Segundo.
Perceived Community Benefit
Mostly Community (5)
Considerable Community (4)
4
Balanced (3)
Considerably Individual (2)
Mostly Individual (0)
Impact
Street Closures; Property:
Street Closure ( -1)
Library Park, Tables, Chairs;
- 3
Property Wear & Tear ( -1)
Sound Impact { -1)
Sound Permit
Other Considerations &
Recommendations
TOTAL SCORE
15
Total Amount Requested to be Waived $
Total Amount Waived $
Level 1: 25 -20 = Consider waiving most fees (75 %) Level 1II: 14 -12 = Consider waiving minimal fees (25 %)
Level 11: 19 -15 = Consider waiving partial fees (50 %) Level IV: <12 = Do not consider waiving fees (0 %)
123
Annual Special Events
Sample Fee Waiver Scorecard Summary
EVENT
SPONSORED BY
SCORE
(out of 25)
Estimated
City Fees
Estimated Fees Paid
by Organization
(If waived according to
Sample Score and Proposed
Percentage)
Level I: Non - Fundraising /Free to Attend -100% Fee Waiver
,Candy Cane Lane
(Residents of E. Acacia Avenue
NIA
$ 1,035
$
Holiday Parade
'El Segundo Chamber of Commerce
NIA
$ 13,835
$
Make a Difference Day
Tree Musketeers
NIA
$ 1,370
$
,Opening Day Parade
iEl Segundo Little League
NIA
$ 4,100
$
Pancake Breakfast
-El Segundo Police & Fire Associations
NIA
$ 535
$
Promotional Dance
'El Segundo PTA
NIA
$ 700
$
Soap Box Derby
El Segundo Boys Scouts Association
NIA
$ 1,671
$
Tasting Bee
El Segundo Girls Scouts
NIA
$ 500
$
Homecominq Parade
lEl Segundo High School
NIA
I $ 7,735
$
Level Il: 75% Fee Waiver (Scores 20 -25)
Movie in the Park
El Segundo Rotary Club
21
$ 6.700
$ 1,675
Arbor Day
Tree Musketeers
20
$ 2,200
$ 550
Main Street Car Show
El Segundo Police Officers Association
20
$ 1.935
$ 484
Richmond Street Fair
El Segundo Kiwanis Club
20
$ 4,135
$ 1,034
Broadway in the Park
EI Se undo Broadwax in the Park
20
$ 2,752
$ 688
Level III: 50% Fee Waiver (Scores 16 -19)
Level IV: 25% Fee Waiver (Scores 11 -15)
(Run for Education 5K & 10K
El Segundo PTA
1 15
$ 7,635
$ 5,726
No roe Waiver (pion El Segundo Organization)
lRelay for Life
American Cancer Society
7N/A7]
$ 7,235 $ 7,235
TOTALS
1 $ 64,0731 $ 17,392
124
PTA El Segundo Council of Parents and Teachers, Inc.
g 641 Sheldon St SEL:�GUNDC
RUN FOR EDUCATION
everychild.onevoice. El Segundo, CA 90245 -3036
February 5, 2015
Meredith Petit
Director of Recreation and Parks
339 Sheldon Street
El Segundo, CA 90245
Dear Ms. Petit:
First, we would like to thank the City of El Segundo and the Recreation and Parks Department for
working with the El Segundo Council of PTAs to make the Run for Education a success. Without
everyone working together, the Run for Education would not be such an outstanding community event.
The El Segundo Council of PTAs was recently reviewing the enclosed July 15, 2014 Run for Education
Scorecard. We believe a few areas warrant an adjustment as follows:
1. The Run for Education was assigned a score of 15. According to the published table, a score of 15
is Level II and a partial fee waiver of 50% is indicated. Our Council believes the Run for Education
was assigned the wrong fee waiver level based upon the table on the Fee Waiver Scorecard. The
City Staff gave the Run a score of 15, but only recommended a 25% fee waiver. Here's what the
table on the scorecard says:
Level I: 25 -20 = Consider waiving most fees (75 %)
Level II: 19 -15 = Consider waiving partial fees (50 %)
Level 1I1: 14-12 = Consider waiving minimal fees (25 %)
Level IV: <12 = Do not consider waiving fees (0 %)
The Run should get a 50% fee waiver, based on the table.
2. Type of Organization: The Run for Education is listed as an El Segundo School Organization. The
El Segundo Council of PTA's Inc. is actually a Resident/El Segundo Non – Profit. While the PTA
works closely with the El Segundo Unified School District, it is a separate, IRS 501(c)(3) legal
entity with its own Tax ID. We think the Run for Education should be moved up to a Resident/El
Segundo Non -Profit which would give us a score increase to 10.
3. Target Audience: The target audience for the Run has always been El Segundo since the Run's
inception. The bulk of our advertising and outreach is actually inside the city limits particularly
within the schools. With the advent of the internet and on -line registration, the Run gets a great
deal of exposure outside of El Segundo — especially since it has become a high quality event that has
a very good reputation with runners in Southern California. And that benefits El Segundo business
which is part of our main target audience. Starting this year, rather than going for the lowest price
for things like t- shirts, printing and signage, we are giving a preference to businesses located in El
Page 1 of 2
125
Segundo. We are focusing our efforts on making this a community event, bringing together the
schools, the city and especially our local businesses. Our target audience is El Segundo, not the
general public. We believe our score should be "4" in this category.
4. The Run for Education is 100% Community Benefit. All money raised is donated directly back to
El Segundo Schools. As a result, we feel we should be awarded another point in this category.
With these adjustments, our score would be increased by 4 points, giving us a score of 19 out of 25. This
number represents a 50% fee waiver based on the table.
We appreciate your willingness to take our appeal to the City Council so they can make a final
determination, if necessary. If you need any additional information or would like me to appear before
the Council, I would be happy to do so. I can be reached at ptathomangamail.com or 310- 640 -8057.
Thank you for your support.
Sincerely,
Kim Thoman
President
El Segundo Council of Parents and Teachers, Inc.
Enclosure
City of El Segundo Fee Waiver Scorecard: PTA - Run for Education 5K & 10K, July 15, 2014
Page 2 of 2
126
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA STATEMENT AGENDA HEADING: Mayor Suzanne Fuentes
AGENDA DESCRIPTION:
Consideration and possible action to appoint Mayor Pro Tem Carl Jacobson and
Councilmember Dave Atkinson to serve on the Richmond Street Design Committee.
(Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1. Appoint Carl Jacobson and Dave Atkinson to serve on the Richmond Street Design
Committee; or
2. Alternatively, discuss and take other possible action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
None
FISCAL IMPACT: None
Amount Budgeted: $0
Additional Appropriation: N/A
Account Number(s): N/A
Al
ORIGINATED BY: Stephanie Katsouleas, Public Works Directo`
REVIEWED BY: Suzanne Fuentes, Mayor
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
On December 18, 2014, staff provided City Council an update on the Richmond Street re-
striping plan that had been implemented in October, and received direction to make certain
modifications to the lane widths, curb stop placement and loading zones in the 100 and 200
blocks of Richmond St. Those changes were implemented in January, 2015.
In the interim, staff has moved forward with the steps necessary to secure design and
construction document services in anticipation of starting construction in early 2016. Among
other elements, the proposed Scope of Work includes conducting extensive outreach to
businesses and residents located on Richmond Street and formation of a Richmond Street Design
Committee to help guide the final design elements for Council consideration. Staff sent out
"Invitations to Participate" in the design process to all businesses, property owners and /or
residents within the 100, 200 and 300 blocks of Richmond St. on February 11th with responses
requested by March 15th. Staff also requested that the Mayor appoint two City Council members
to serve on a design committee, which is expected to meet up to five (5) times between April and
June. The Mayor recommends appointing Mayor Pro Tem Carl Jacobson and Councilmember
Dave Atkinson to serve on the committee given their expressed interest and past, active
involvement in meetings regarding Richmond Street improvements. This committee will be
instrumental in crafting the final design that will presented to City Council for consideration and
•
127
become the basis for developing construction documents for the Richmond St. Rehabilitation
proj ect.
128
EL SEGUNDO CITY COUNCIL MEETING DATE: February 17, 2015
AGENDA ITEM STATEMENT AGENDA HEADING: Mayor Suzanne Fuentes
AGENDA DESCRIPTION:
Consideration and possible action to adopt a resolution in support of the Los Angeles Air Force Base
and the Space and Missile Systems Center continuing its mission and operation in the City of El
Segundo. (Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
1. Approve the attached resolution;
2. Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Draft resolution
Letter of support
FISCAL IMPACT: $
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s):
PREPARED BY: Mishia Jennings, Executive Assistant
REVIEWED BY: Suzanne Fuentes, Mayor
APPROVED BY: Greg Carpenter, City Manager,,
BACKGROUND & DISCUSSION:
On February 2, 2015, City of Los Angeles Mayor Eric Garcetti hosted a meeting of Los Angeles County
mayors where Mayor Suzanne Fuentes gave a presentation about Los Angeles Air Force Base's
( LAAFB) history, national defense importance and economic significance to Los Angeles County.
Los Angeles Supervisor Don Knabe attended the meeting and emphasized immediate efforts to retain
LAAFB, home of the Space and Missile Systems Center (SMC), are necessary because the Federal
Government could act quickly without following the usual Base Realignment and Closure (BRAG)
process. Supervisor Knabe spoke about a Resolution he intended to present at the February 3 Board of
Supervisors meeting regarding retention of LAAFB, home SMC, in the City of El Segundo. The
Resolution was passed unanimously.
After Mayor Fuentes's presentation, Mayor Garcetti spoke in support of LAAFB and SMC. Mayor
Garcetti and Mayor Fuentes distributed a letter (attached) endorsing LAAFB and SMC retention to the
mayors in attendance and requested their signatures of support. It was understood the mayors were
signing in their individual capacity because no City Council had yet had the opportunity to consider the
matter.
19
129
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO, CALIFORNIA, SUPPORTING THE LOS ANGELES AIR
FORCE BASE AND THE SPACE AND MISSILE SYSTEMS CENTER.
The City Council of the City of El Segundo does resolve as follows:
The Los Angeles Air Force Base ( LAAFB) and the Space and Missile Systems Center (SMC)
are critical assets to the aerospace industry and the nation's ability to design the military
technology necessary to adequately provide for our national defense. The biggest asset to our
country's safety, possessed by the LAAFB and SMC, is its unmatched skilled workforce based in
Los Angeles. This brain trust, consisting of 5,879 directly employed military, civilian, and
contractor workers and 11,776 indirectly employed, has made its home in Los Angeles and
would be unlikely to migrate anywhere else if either the LAAFB or SMC moved some of its
operations. This localized, highly skilled workforce is essential to the success of the LAAFB
and. the SMC, and has time and again proven itself crucial to the defense of the United States of
America.
The SMC has provided the nation with highly sophisticated intelligence gathering infrastructure
that has significantly contributed to the U.S. military's advancement in missions such as
Operation Desert Storm and Operation Iraqi Freedom where SMC is noted as having added
"unimaginable speed and precision to American military operations" through the use of space -
based surveillance, communications, navigation and meteorology.
As national defense continues to rely more on intelligence gathering, the role SMC has played in
developing, acquiring, fielding and sustaining our military space systems cannot be overstated.
SMC has proven to be a critical infrastructure asset to our national defense both in the past as
well as for the foreseeable future.
LAAFB's and SMC's location also bolsters its strategic importance to our national defense due
to the following factors:
• Los Angeles County remains the top location for aerospace and defense in the nation —
home to major prime contractor operations, such as Northrop Grumman, Lockheed
Martin, Boeing, Raytheon, and Honeywell, as well as Aerospace Corporation which is
physically connected to LAAFB and home to more small and mid -sized companies in the
aerospace and defense supply chain than anywhere else in the nation.
• Los Angeles County also graduates more engineers than any other region and has
developed sophisticated programs at community colleges and universities to meet the
needs of the aerospace and defense industry well into the future.
The proximity to a significantly large aerospace and defense ecosystem of companies
coupled with an unmatched skilled workforce available only in L.A. provide the LAAFB
with unparalleled built -in benefits to advance its mission.
Los Angeles provides vital talent and connections to the largest aerospace manufacturing base in
the country to the LAAFB and SMC, which can be found nowhere else. Similarly, the Los
Page 1 of 2
130
Angeles Air Force base is a Los Angeles icon, keeping our region connected to the armed forces
and the women and men who keep our country safe.
History has shown us that we must be forever vigilant so that this incredible asset to our national
security and regional economy is not threatened by closure or relocation.
BE IT FURTHER RESOLVED, by the City Council of the City of El Segundo, California as
follows:
SECTION 1:
A. The City of El Segundo City Council is in full support of the motion made by
Supervisor Don Knabe on February 3, 2015. Where a letter signed by the five
current Los Angeles Board of Supervisors was sent to Secretary Chuck Hagel and
Secretary of the Air Force Deborah Lee James expressing their firm support for
the Los Angeles Air Force Base and stating that any relocation attempt of the
Space and Missile Systems Center would be detrimental to national defense and
the mission of the Los Angeles Air Force Base.
B. El Segundo City Council is in full support of the Mayors' of Los Angeles County
letter sent to Secretary Chuck Hagel and Secretary of the Air Force Deborah Lee
James expressing their firm support for the Los Angeles Air Force base and
stating that any relocation attempt of the Space and Missile Systems Center would
be detrimental to national defense and the mission of the Los Angeles Air Force
Base.
C. For our residents and the community at large who are professionally connected to
the aerospace community centered by the Los Angeles Air Force Base and Space
and Missile Systems Center, the El Segundo City Council strongly supports
retaining the facility in El Segundo, California.
PASSED AND ADOPTED this day of _ 20_ _ _
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
MARK D. HENSLEY, City Attorney
Lo
Mark D. Hensley, City Attorney
Suzanne Fuentes, Mayor
Page 2 of 2
131
February 2, 2015
Secretary of Defense Chuck Hagel Secretary of the Air Force Deborah Lee James
1400 Defense Pentagon 1690 Air Force Pentagon
Washington, DC 20301 -1400 Washington, DC 20330 -1670
Dear Secretary Hagel and Secretary James,
As city leaders within Los Angeles County, we write to express our strong support for
the Los Angeles Air Force Base and the critical role it plays in our nation's defense.
Los Angeles County has a rich history in aerospace, missile, and defense technology
and development. Los Angeles remains the top location for aerospace and defense in
the nation because of its expansive supplier base of firms, skilled talent, and unmatched
export capacity. Los Angeles' national designation as an advanced aerospace
manufacturing community, one of only twelve manufacturing communities selected
nationwide, is testament to its strength within this industry as is its recent selection to
host the Department of Commerce's first annual National Aerospace Foreign Direct
Investment Expo.
The Los Angeles Air Force Base ( LAAFB) and the Space and Missile Systems Center
(SMC) are critical assets to the aerospace industry and the nation's ability to design the
military technology necessary to adequately provide for our national defense. The
biggest asset to our country's safety, possessed by the LAAFB and SMC, is its
unmatched skilled workforce based in Los Angeles. This brain trust, consisting of 5,879
directly employed military, civilian, and contractor workers and 11,776 indirectly
employed, has made its home in Los Angeles and would be unlikely to migrate
anywhere else if either the LAAFB or SMC moved some of its operations. This
localized, highly skilled workforce is essential to the success of the LAAFB and the
SMC, and has time and again proven itself crucial to the defense of the United States of
America.
SMC provides the nation with highly sophisticated intelligence gathering infrastructure
that has - significantly contributed to the U.S. military's advancement in missions such as
Operation Desert Storm and Operation Iraqi Freedom where SMC was noted as having
added "unimaginable speed and precision to American military operations" through the
use of space -based surveillance, communications, navigation and meteorology.
As national defense continues to rely more on intelligence gathering, the role SMC has
played in developing, acquiring, fielding and sustaining our military space systems
cannot be overstated. SMC has proven to be a critical infrastructure asset to our
national defense both in the past as well as for the foreseeable future.
132
LAAFB's and SMC's location also bolsters its strategic importance to our national
defense due to the following factors:
• Los Angeles County remains the top location for aerospace and defense in the
nation —home to major prime contractor operations, such as Northrop Grumman,
Lockheed Martin, Boeing, Raytheon, and Honeywell, as well as Aerospace
Corporation which is physically connected to LAAFB and home to more small
and mid -sized companies in the aerospace and defense supply chain than
anywhere else in the nation.
• Los Angeles County graduates more engineers than any other region and has
developed sophisticated programs at community colleges and universities to
meet the needs of the aerospace and defense industry well into the future.
• Proximity to a significantly large aerospace and defense ecosystem of
companies coupled with an unmatched skilled workforce available only in Los
Angeles provides LAAFB with unparalleled built -in benefits to advance our
nation's defense mission.
Los Angeles provides LAAFB and SMC vital talent and connections to the country's
largest aerospace manufacturing base. Similarly, the Los Angeles Air Force Base is a
Los Angeles icon, keeping our region connected to the armed forces and the women
and men who keep our country safe. Neither SMC nor Los Angeles would be as strong
without the other.
We, the mayors of the cities in Los Angeles County, support the Los Angeles Air Force
Base and the Space and Missile Systems Center, and firmly believe any relocation
attempt of the SMC would be detrimental to national defense and the mission of the Los
Angeles Air Force Base.
Sincerely,
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