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2019 Aug 20 - CC PACKETAGENDA EL SEOUNDO CITY COUNCIL WEST CONFERENCE ROOM - 350 MAIN STREET Mayor Boyles — Teleconferencing Camp Echo 3782 S. Triangle, Freemont, MI 49412 310-766-7546 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. MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, AUGUST 20, 2019 — 4:00 PM 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 — ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code §54956.9 (d)(4) 0"A AGENDA EL SEGUNDO CITY COUNCIL COUNCIL CHAMBER - 350 MAIN STREET Mayor Boyles — Teleconferencing Camp Echo 3782 S. Triangle, Freemont, MI 49412 310-766-7546 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, AUGUST 20, 2019 - 6:00 P.M. CALL TO ORDER INVOCATION — Pastor W. A. Garett, The Way Church PLEDGE OF ALLEGIANCE — Councilmember Pimentel SPECIAL PRESENTATIONS ROLL CALL 3 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 MANAGER COMMENTS — (Related to Public Communications) A. APPROVAL OF AGENDA ORDER AND WAIVER OF FULL READING OF ORDINANCES AND RESOLUTIONS This is the time for City Council to: a) make changes to the agenda; b) remove items from the consent calendar for individual consideration, or (c) rearrange the order of the agenda. MOTION TO APPROVE AGENDA ORDER AND WAIVE FULL READING B. CONSENT CALENDAR Approve Regular City Council Meeting Minutes of August 6, 2019, Special City Council Minutes of July 17, 2019 (Budget Session) and Joint EDAC and City Council Minutes of July 17, 2019. 2. Approve Warrant Numbers 3027089 through 3027194 and 9001028 through 9001028 on Register No. 21a in the total amount of $506,062.74 and Wire Transfers from 7/22/19 through 7/28/19 in the total amount of $479,962.72 and Warrant Numbers 3027195 through 3027298 and 9001029 through 9001068 on Register No. 21b in the total amount of $1,202,909.31 and Wire Transfers from 7/29/19 through 8/4/19 in the total amount of $929,856.34 and Warrant Numbers 3027299 through 3027378 and 9001069 through 9001069 on Register No. 22a in the total amount of $430,220.21 and Wire Transfers from 8/05/19 through 811/19 in the total amount of $391,140.94. 3. Receive and file a Resolution in compliance with Senate Bill 1205; annual reporting of state mandated fire and life safety inspections. 4. Waive formal bidding requirements and authorize City Manager to execute a 5 - year contract with Joe's Sweeping, Inc., dba Nationwide Environmental Services for Citywide Street Sweeping services, effective October 1, 2019. 5. Accept as complete Fire Station #1 Chiefs' Living Quarters Improvement Project. Project No. PW 18-01. 6. Accept as complete Class III Bike Route on Main Street, Grand Avenue, Nash Street and Utah Avenue. Project No. PW 19-03. 7. Waive second reading and adopt an Ordinance to approve a change zoning designation and zoning map from Commercial Center to Urban Mixed -Use South 4 and to approve a 10 -year Development Agreement for 2021 Rosecrans Avenue, EI Segundo (Rosecrans- Sepulveda Partners 4, LLC). 8. Approve 1) A Memorandum of Understanding (MOU) (Labor Agreement) between City of EI Segundo and EI Segundo Supervisory and Professional Employees' Association (SPEA); 2) Adopt Resolution approving Memorandum of Understanding; 3) Adopt Resolution approving and authorizing changes to City's medical premium to CaIPERS for each year of the MOU. C. PUBLIC HEARINGS 9. Conduct a public hearing regarding Environmental Assessment No. EA -1253 and Zone Text Amendment No. ZTA 19-07. A request to amend certain sections in Title 15 of the EI Segundo Municipal Code pertaining to the site development standards and encroachments in the Corporate Office (CO) Zone and the Urban Mixed Use North (MU -N) Zone of the City. The proposed zone text is exempt from further review based on CEQA Guidelines § 15061(b)(3), it consists of only minor revisions to existing zoning regulations and related procedures. It will not cause a significant effect on the environment. 10.Approve an amendment to the EI Segundo South Campus Specific Plan and Environmental Assessment No. EA -905 to amend Development Agreement (No. DA 11-02) and Conditions of Approval and approve a categorical exemption pursuant to the California Environmental Quality Act for the142-acre Project Site at 2000-2100 East EI Segundo Boulevard (Raytheon Company). 11. Conduct a public hearing regarding an annual updated Master Fee Schedule and amending current fees and service charges and various other amendments to City of EI Segundo Fee Schedule; this does not include water rate fees, sewer rate fees and development impact fees. D. STAFF PRESENTATIONS 12. Treasury Investment Report for June 2019 13.Authorize City Manager to sign Cost Sharing and Joint Use Agreement with EI Segundo Unified School District for construction of a parking lot at Richmond Street Field. 14. Proposed Budget FY2019-20 E. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS 15. Library Board of Trustees and Environmental Committee Appointments. F. REPORTS — CITY CLERK G. REPORTS — CITY TREASURER 5 5 H. REPORTS — COUNCILMEMBERS Councilmember Pimentel — Councilmember Nicol — Councilmember Brann — Mayor Pro Tem Pirsztuk — Mayor Boyles — 16. Letter of support from mayor for Senate Bill 54 and Assembly Bill 1080, California Circular Economy and Plastic Pollution Reduction Act. I. REPORTS — CITY ATTORNEY J. REPORTS/FOLLOW-UP — CITY MANAGER CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et s,�.) for the purposes of conferring with the City's Real Property Negotiator; and/or conferring with the City Attorney on potential and/or existing litigation; and/or discussing matters covered under Government Code Section §54957 (Personnel); and/or conferring with the City's Labor Negotiators. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) ADJOURNMENT POSTED: DATE: TIME: NAME: I MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, AUGUST 6, 2019 — 4:00 PM CALL TO ORDER — Mayor Boyles at 4:02 PM ROLL CALL Mayor Boyles - Present Mayor Pro Tem Pirsztuk - Present Council Member Brann - Present Council Member Pimentel - Absent Council Member Nicol - Present PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) None SPECIAL ORDER OF BUSINESS: Interview candidates of the Library Board of Trustees and the Environmental Committee. Council interviewed candidates. The following candidates were approved: Janice Merva and Carol Ericson to the Library Board of Trustees and Sarah Brockhaus and Corrie Zupo to the Environmental Committee. The appointments will be announced at the August 20, 2019 regular City Council meeting. Mayor Boyles announced that Council would be meeting in closed session pursuant to the items listed on the Agenda. 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 — ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code §54956.9 (d)(4) DISCUSSION OF PERSONNEL MATTER (Gov't Code §54957) Performance Review Position: City Manager MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 1 1 P a g e CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6 1. Employee Organizations: Police Management Association; Supervisory, Professional Employees Association. Agency Designated Representative: Irma Moisa Rodriquez, City Manager, Scott Mitnick and Human Resources Director, David Serrano. Adjourned at 5:55 PM MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 2 1 P a g e REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, AUGUST 6, 2019 - 6:00 PM CALL TO ORDER — Mayor Boyles at 6:01 PM INVOCATION — Pastor Wes Harding, The Bridge Church PLEDGE OF ALLEGIANCE — Council member Nicol PRESENTATIONS a) Bill Whalen, Chief of Police, introduced new City of EI Segundo Police Officers; Lucas Montero and David Deady, Chief also invited the Community to the 2nd Annual National Night Out to be held on Wednesday, August 7th b) EI Segundo Youth Drama presents a sneak peak of the upcoming production of "The Addams Family", with a song sung by Olivia Reeds, who will play Pugsley Addams. The production will run from August 15th —August 18th at the EI Segundo Performing Arts Center. Art Walk Update presentation moved to final Public Communications ROLL CALL Mayor Boyles - Present Mayor Pro Tem Pirsztuk - Present Councilmember Brann - Present Councilmember Pimentel - Absent Councilmember Nicol - Present PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Marsha Hansen and Linda Johnson, Chamber of Commerce, invited the Community to the upcoming EI Segundo Car Show on Main to be held on Saturday, August 17tH Chris Eidem, resident, commented on the state of the skatepark and asked Council to look into renovations of the park. Mr. Eidem handed Council a copy of the skatepark renovations he had prepared. Ron Swanson, resident, congratulated the Council on selecting Mr. Mitnick as our new City Manager and once again announced his company would be supplying In and Out for an employee appreciation lunch on September 11, 2019. CITY MANAGER COMMENTS — (Related to Public Communications) A. APPROVE REVISIONS OF THE AGENDA MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 3 1 P a g e M MOTION by Councilmember Brann, SECONDED by Mayor Pro Tem Pirsztuk to move the Art Walk update to final Public Communications. No other changes were made to the agenda order. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0 B. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. MOTION by Councilmember Brann, SECONDED by Mayor Pro Tem Pirsztuk to read all ordinances and resolutions on the Agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0 C. 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. Approve Warrant Numbers 3026828 through 3026916 and 9000990 through 9001026 on Register No. 19b in the total amount of $381,989.64 and Wire Transfers from 7/1/19 through 7/7/19 in the total amount of $436,403.86. Warrant Numbers 3026917 through 3027088 and 9001027 on Register No. 20a&b in the total amount of $784,866.30 and Wire Transfers from 7/8/19 through 7/21/19 in the total amount of 12,228,329.73. Ratified Payroll and Employee Benefit checks; checks released early due to contracts or agreement; emergency disbursements and/or adjustments; and wire transfers. 2. Approve Regular City Council Meeting Minutes of July 16, 2019. 3. Approve an automatic aid Agreement No. 5746 between the EI Segundo Fire Department and the Los Angeles City Fire Department. The document has been reviewed and approved by the City Attorney. 4. Adopt Resolution No. 5158 appointing Director of Finance, Joseph Lillio, Director of Human Resources, David Serrano, and City Council Mayor, Drew Boyles and City Council Member Chris Pimentel to serve as board member, alternate board member, and substitute alternate board members, respectively, on the Independent Cities Risk Management Association (ICRMA) governing board. 5. Waive the minor irregularity in the bid from Ruiz Concrete and Paving, Inc., authorize the City Manager to execute a standard Public Works Contract No. 5747, in a form approved by the City Attorney, with Ruiz Concrete and Paving, Inc. in the amount of $139,058.05 for the McCarthy Court Street Improvements, Project, authorize an additional $20,859 for construction -related contingencies and authorize the City Manager to execute a standard Professional Services Agreement No. 5748, in a form approved by the City Attorney with AKM MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 4 1 P a g e 10 Consulting Engineers in the amount of $23,740 for construction inspection services on the project and authorize an additional $2,400 for construction - inspection -related contingencies. Project No. PW 19-10. (Fiscal Impact: $186,057.05) 6. Approve the revision to a previously approved Consent Agenda item (#C8) from the June 18, 2019 City Council agenda, the fiscal impact and fiscal year in the agenda description were clerical errors. Approve the award of Contract No. 5731 to Lanair Group LLC using a Federal government cooperative agreement, General Services Administration (GSA) as an exemption to the City's formal bidding requirements pursuant to EI Segundo Municipal Code § 1-7-9(C), and authorize the City Manager to execute a 3 year agreement with Lanair Group LLC, in a form approved by the City Attorney, to purchase hardware, software, training and professional services to implement the Storage Area Network and Blade Systems. (Fiscal Impact: $904,665.00 FY 2018-19)" 7. Authorize two professional services agreements related to the Pacific Coast Commons Specific Plan (east side of Pacific Coast Highway, between Palm Avenue and Holly Avenue), one with Dudek Agreement No. 5749 not to exceed $228,525 for CEQA analysis and preparation of an EIR, and the other for JWA Urban Consultants, Inc., Agreement No. 5750 which does not have a defined cap, but is estimated to be under $150,000. Both agreements are for services that will be fully reimbursed by the applicant (BRE EI Segundo Holdco, LLC). This request is to authorize the City Manager to sign the agreements in a form approved by the City Attorney. (Fiscal Impact: $0) MOTION by Councilmember Nicol, SECONDED by Councilmember Brann to approve Consent Agenda items 1, 2, 3, 4, 5, 6 and 7. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0. D. PUBLIC HEARINGS 8. Consideration and possible action regarding Environmental Assessment No. EA - 1201 to: Approve an amendment to the General Plan and Zoning Ordinance to change the site's land use and zoning designations from Commercial Center to Urban Mixed -Use South; Approve a 10 -year Development Agreement; Certify an Environmental Impact Report and adoption of Statement of Overriding Considerations pursuant to the California Environmental Quality Act; (Fiscal Impact: N/A) Mayor Boyles stated this was the time and place to continue the Public Hearing regarding an amendment to the General Plan and Zoning Ordinance to change the site's land use and zoning designations from Commercial Center to Urban Mixed -Use South, approve a 10 -year Development Agreement No. 5751, Certify an Environmental Impact Report and adopt Statement of Overriding Considerations. The project site is located at 2021 Rosecrans Avenue, EI Segundo, California 90245. MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 5 1 P a g e 11 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. Sam Lee, Planning, Building and Safety Director, introduced the item. Ethan Edwards, AICP, Contract Project Planner, gave a presentation Gena Guisar, Contract Project Planner, outlined the revisions made to Exhibits A, B and C of the staff report. See the posted updated Exhibits on the City's Website under August 6, 2019 agenda. Public Comment: Alex Rose, Continental Development Corporation, presented on the item. Rebecca Davis, representing Supporters Alliance for Environmental Responsibility, encouraged the Council to decline the EIR certification because it fails to comply with CEQA. Jenny Mailhout, CEQA Consultant and Varalakshmi Jayaram, CEQA Consultant commented on the previous speakers comments that the project fails to comply with CEQA and encouraged Council to certify the EIR and in their opinion complies with CEQA fully. MOTION by Mayor Pro Tem Pirsztuk, SECONDED by Councilmember Brann to close the public hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0. Council Discussion Mark Hensley, City Attorney, read by title only: RESOLUTION NO. 5159 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO CERTIFYING THE ENVIRONMENTAL IMPACT REPORT (ENVIRONMENTAL ASSESSMENT NO. EA -1201) FOR THE BEACH CITIES MEDIA CAMPUS PROJECT; MAKING FINDINGS OF FACT AND ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS; AND ADOPTING A MITIGATION MONITORING AND IREPORTING PROGRAM. MOTION by Councilmember Nicol, SECONDED by Mayor Pro Tem Boyles adopting Resolution No. 5159 as amended. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0. RESOLUTION NO. 5160 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO APPROVING GENERAL PLAN AMENDMENT AND GENERAL PLAN MAP AMENDMENT NO. GPA 17-01 MODIFYING THE LAND USE DESIGNATION OF THE MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 6 1 P a g e 12 6.93 ACRE PROPERTY AT 2021 ROSECRANS AVENUE FROM COMMERCIAL CENTER (C-4) TO URBAN MIXED USE SOUTH (MU -S) MOTION by Councilmember Nicol, SECONDED by Mayor Pro Tem Pirsztuk adopting Resolution No. 5160 as amended. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0. ORDINANCE NO. 1587 AN ORDINANCE APPROVING ZONE CHANGE AND ZONING MAP AMENDMENT NO. ZC 17-01 AND DEVELOPMENT AGREEMENT NO. DA 17-02 FOR THE BEACH CITIES MEDIA CAMPUS PROJECT AT 2021 ROSECRANS AVENUE. Councilmember Nicol introduced the Ordinance. The second reading and adoption of the Ordinance is scheduled for the August 20, 2019 regular City Council meeting. E. STAFF PRESENTATIONS 9. Police department update on homelessness activities within the City. Lt. Dan Kim introduced Stephanie Lamarche, Nicole Watson and Tina Webb from the LA Department of Mental Health, which the Police Department has recently partnered with as a resource for the department regarding the homeless and mental ill. Lt. Kim also gave an update presentation on the City's Homeless Plan. Council Discussion Council consensus to receive and file the presentation 10. Richmond Street Field Improvement Project Update Meredith Petit, Recreation and Parks Department Director gave a presentation Council Discussion Council consensus to bring the agreement between the EI Segundo Unified School District and the City of EI Segundo to the August 20, 2019 regular City Council meeting for possible approval. F. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS 11. Arts and Culture Advisory Committee Appointments. Mayor Boyles announced the following appointments to the Arts and Culture Advisory Committee; Jeff Cason, Natalie Strong, Michael Kreski, Maureen Kingsley and Mark Knight each to a term ending June 30, 2022. MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 71 Page 13 G. REPORTS — CITY CLERK - Passed H. REPORTS — CITY TREASURER — Not present REPORTS — CITY COUNCIL MEMBERS Council Member Pimentel — Absent Council Member Nicol — Passed Council Member Brann — Thanked everyone for their "Aloha" spirit this evening. Mayor Pro Tem Pirsztuk — Thanked Chevron for helping to keep our EI Segundo Beach clean, mentioned the City will be installing a gate at the entrance of California Street and E. Acacia Ave. (off of Imperial Avenue), thanked the Library for their continued outreach programs for teens and thanked the Chamber of Commerce and the AC Hotel for their Grand Opening Event and welcomed the hotel to EI Segundo. Mayor Boyles — Attended the Delegation to China, the experience was incredible, met with high level officials of various cities and districts. Was asked to sign an MOU regarding exchanging ideas, would like to bring back the MOU for Council approval before officially signing. Requested a moment of silence for the lives recently lost in the Ohio and Texas. J. REPORTS — CITY ATTORNEY — Passed K. REPORTS — CITY MANAGER — Mentioned upcoming events; National Night Out, Wednesday, August 7th, MacKenzie Lueck Memorial Saturday, August 10th and invited the Community to the City Manager Meet and Greet on Monday, August 12th at the Slice and Pint from 4:30 — 6:30 PM. Mentioned upcoming agenda items for the August 20th City Council Meeting; 3 Public Hearings, Raytheon Project and Zone Text Amendment for Commercial Office and Mixed Use North zoning changes. PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) John McCullough, presented an update on the EI Segundo 2019 Art Walk. Emily Layne, resident and School Board Member, commented on the Richmond Street Field Improvement project, item #E10. Cheryl Wendell, representing Mass Resistance, commented on the Drag Queen Story Hour held at ESMoA on July 26, 2019. Sandy Willson -White, resident, commented on the Drag Queen Story Hour held at ESMoA on July 26, 2019. ADJOURNMENT at 8:03 PM MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 81 Page 14 Tracy Weaver, City Clerk MINUTES OF THE REGULAR COUNCIL MEETING AUGUST 6, 2019 9 1 P a g e 15 SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL WEDNESDAY, July 17, 2019 350 Main Street, EI Segundo, CA 90245 8:00 a.m. (Budget Study Workshop #2 for FY 2019-20) CALL TO ORDER — Mayor Pro Tem Pirsztuk at 8:08 AM PLEDGE OF ALLEGIANCE — Council Member Pimentel ROLL CALL Mayor Boyles - Present at 8:10 AM Mayor Pro Tem Pirsztuk- Present Council Member Brann- Present Council Member Pimentel — Present Council Member Nicol - Present PUBLIC COMMUNICATIONS — (Related to City Business Only) — 5 minute limit per person, 30 minute limit total) None SPECIAL ORDERS OF BUSINESS: 1. Consideration and possible action regarding a budget study workshop resulting in City Council receiving and filing of staff's discussion, analysis, and recommendations in preparation for the Fiscal Year (FY) 2019-2020 budget. Staff will present on the following matters: A. Public Comments — None B. Overview of Proposed FY 2019-20 Budget — Scott Mitnick, City Manager welcomed everyone to Budget Session II and Joe Lillio, Finance Director outlined the meeting. Continue Department Overviews (Planning & Building Safety and Public Works) — Sam Lee, Planning & Building Safety Director presented the department's budget needs. Ken Berkman, Public Works Director presented the department's needs. Council Discussion ii. Review of proposed Capital Improvement Program (CIP) Budget — Ken Berkman presented. For final Capital Improvement Program (CIP) proposed Budget, Council suggested moving the Teen Center renovation (including the Skate park and Basketball courts) up on the list of priorities and begin the park renovation portion of the Acacia Park project. Council consensus was to wait `[ on the pool portion of the renovation until later in the year, when a possible grant approval could occur. Move forward on the Plunge redesign at this time as well. Recess at 9:39 AM Reconvened at 9:57 AM C. Revised 2020-2022 City Strategic Plan update — Joe Lillio, Finance Director, stated to Council the final Strategic Plan will brought back to a regular City Council in August for approval. Included in the revised Strategic Plan will be Council's new priorities for the next 3 years and an updated plan with the removal of completed items and ongoing items that have yet to be completed. At the second meeting in August, Council will be asked their feedback. D. Long-term financial strategic plan, including future revenue opportunities and expenditure controls — Joe Lillio, Finance Director, gave a presentation. Council Discussion — all options and items discussed will be incorporated into the final proposed budget. Council will have the opportunity to discuss and/or approve at the regular City Council meeting of August 20, 2019. The final proposed FY 19/20 will be presented for consideration at the September 3, 2019 regular City Council meeting. E. Wrap Up and Next Steps — Future budget discussion dates; August 20, 2019 regular City Council Meeting and final presentation on September 3, 2019 regular City Council meeting. If the need arises, the budget can be brought to a final date of September 17, 2019. ADJOURNMENT at 10:45 AM Tracy Weaver, City Clerk 17 SPECIAL JOINT MEETING OF THE EL SEGUNDO CITY COUNCIL AND ECONOMIC DEVELOPMENT ADVISORY COUNCIL July 17th, 2019 Meeting Minutes CALL TO ORDER Chair Al Keahi called to order the Joint Meeting of the City of EI Segundo City Council and Economic Development Advisory Council at 4:30PM on Wednesday July 17, 2019 at Hyatt Place 750 N. Nash Street, EI Segundo, CA 90245. ROLL CALL The following EI Segundo City Council members were present: • Mayor Drew Boyles • Mayor Pro Tem Carol Pirsztuk • Dr. Don Brann ■ Chris Pimentel ■ Scot Nicol The following EI Segundo City Staff were present: • Scott Mitnick, City Manager • Barbara Voss, Deputy City Manager • Cristina Reveles, Economic Development Coordinator • Tracy Weaver, City Clerk The following Economic Development Advisory Council members were present: • Al Keahi (Chair) • Richard Lundquist • Alex Abad • Bob Healey • Lily Craig • Gary Horwitz • Jim McCaulley • Lance Rails ■ Vandad Espahbodi • Lance Giroux • Shar Franklin • Matthew Tompkins The following Economic Development Advisory Council members were absent: • Spencer Bauer ■ Rob Croxall • Rick Yuse APPROVAL OF MINUTES • Michael Mothner Tim Harris • Corine Murat Lily Craig motioned to approve the minutes of the May 15th, 2019 meeting. Jim McCaulley seconded, unanimous approval. 18 PUBLIC COMMUNICATIONS • A. Keahi thanked Director of Sales Bob Blongiewicz for hosting the EDAC meeting at Hyatt Place. ■ B. Blongiewicz shared the Hyatt Place will undergo top -to -bottom renovations in October, including a revamped bar and lobby and refreshed guest rooms. UPDATES ■ A. Keahi introduced Scott Mitnick as the new City Manager of the City of EI Segundo. ■ K. Bergevin, Communications Consultant, provided an update on the second Yelp Elite event hosted in June. ■ 100 Yelpers participated in the event • More than 450 photos have been uploaded to the Yelp event page with over 40 reviews. PRESENTATIONS Irma Vega, Account Supervisor — 9th Wonder Marketing Firm • I. Vega, gave a brief overview of media and public relations activity for 2018-2019 and presented the marketing plan for 2020 highlighting initiatives to lower commercial vacancy rates, increase hotel occupancy rate, as well as promote business retention and encourage expansion. • Since launching Destination ElSegundo. com in October 2018 over 30,000 visitors have visited the site. • After the redesign of ElSegundoBusiness.com the site produced over 10,000 visitors ■ A new economic development newsletter was recently launched highlighting key properties allowing people to register and receive a flow of emails for the latest EI Segundo's business and real estate news. • Commercial real estate professionals, C -level executives and small business owners form part of the core target audience for new business. Day trippers, LAX business travelers, sports enthusiasts and California vacationers are the target market for the hospitality/tourism campaign. ■ Efforts driving to business and hospitality websites, include: • Paid Search ■ Display, Mobile and Banner Ads • Paid Social ■ Organic Social • Newsletters • Target users for new business will be reached through new media initiatives including Paid Social (Linkedln) and Digital ads highlighting why El Segundo is a premier location for businesses. ■ Increase focus on sports enthusiasts for hospitality/tourism will be reached through programmatic display ads highlighting EI Segundo's connection and close proximity to major sports properties. • B. Voss stated the newly launched newsletters uses govDelivery's applications and analytics tools in which clickthrough rates and open rates can be used to gauge how well the newsletters are performing. • S. Franklin suggested for the city to explore advertising opportunities with TripAdvisor • Mayor Pro Tem C. Pirsztuk suggested EDAC reach out to hotels in the city 19 • B. Voss responded there's a committee made up of representatives from the Chamber, the City and EDAC with several EI Segundo -based hotel general managers and directors of sales who have been involved in the "Start Here" hospitality/tourism marketing campaign. Sam Lee, Planning & Building Safety Director — City of EI Segundo • S. Lee presented on residential and commercial building projects in EI Segundo • AC Hotel: 4 -star hotel with 180 rooms (100,000 sq. feet) • EVA HQ: Two five -story office building • WeWorks: 2221 Park Place • Nordstrom Rack: 24,000 sq. feet • Plaza Collection: retail space to be converted into office space by mid -2020 • Market Station: Warehouse to be converted into an eatery and office space • 888 Douglas: $100m development of 4 buildings (550,000 sq. feet) ■ Standard Works: 5 buildings in Smoky Hollow (190,000 sq. feet) • Raytheon South Campus: Phase 1 — Nash St. Exchange (75,000 sq. foot of retail, office and medical offices); Phase 2 to be sold • 101 Continental: 340,000 sq. foot of office space feet recently sold • Beach City Media Campus: 240,000 sq. foot five -story office building, 66,000 sq. foot studio and production facility • Pacific Corporate Commons: Five -story mix use pedestrian oriented development The EDAC Work Plan Update was deferred to the August 21St, 2019 EDAC meeting. COUNCIL MEMBER/ EDAC/ STAFF COMMENTS • B. Voss announced the LA Street Festival will take place on September 20th and 21St • B. Voss announced Topgolf negotiations are ongoing • B. Voss commented on Sexual Harassment Prevention Training for EDAC members ■ A. Abad announced the City of Los Angeles approved a project to paint an EI Segundo lifeguard tower from blue to pink to raise breast cancer awareness in October. • A. Keahi announced Michael Hackman is the honoree for Champions of Business • A. Keahi commented on landscaping needs on Imperial and California ADJOURNMENT The meeting adjourned at 6:28PM. Posted on 08/13/2019 By: Cristina Reveles Economic Development Coordinator 20 m S------------- OQ O � � � � �- � � � r N l7 00011 z W 0, Z W 0 Y v ti w p U w Q I� J Q F \ A IL �+ M IL � � W LL O O Z OD 2 VW - n� 3 0 m @ko m An pa 0 c o 0 y Tn 8,8 m O Lu co Q m W y U J Q W F O H � m ' a R m m o = 01 U a o O O C4 8 U E t1 /� W ! 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K a u w U {y� m S ii (3 21 Rr CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 7/22/19 THROUGH 7/28/19 Date Payee Descri tion 7/23/2019 Manufacturers & Traders 26,933.89 457 payment Vantagepoint 7/23/2019 Manufacturers & Traders 550.00 IRA payment Vantagepoint 7/23/2019 Cal Pers 9,526.04 EFT Retirement Safety-Fire-PEPRA New 25020 7/23/2019 Cal Pers 12,012.59 EFT Retirement Safety-Police-PEPRA New 25021 7/23/2019 Cal Pers 29,950.88 EFT Retirement Misc - PEPRA New 26013 7/23/2019 Cal Pers 49,777.39 EFT Retirement Misc - Classic 27 7/23/2019 Cal Pers 71,344.99 EFT Retirement Safety Police Classic - 1st Tier 28 7/23/2019 Cal Pers 48,591.80 EFT Retirement Safety Fire- Classic 30168 7/23/2019 Cal Pers 4,239.26 EFT Retirement Sfty Police Classic -2nd Tier 30169 7/23/2019 ICRMA 170,332.83 Annual Worker's Comp. Assessment payment 7/25/2019 Cal Pers 200.00 Admin Fee - Late Payroll Reporting 7/25/2019 Cal Pers 5,343.90 1959 Survivor Billing Employer Contributions 7/26/2019 Manufacturers & Traders 26,857.56 457 payment Vantagepoint 7/26/2019 Manufacturers & Traders 550.00 IRA payment Vantagepoint 7/15/19-7/21/19 Workers Comp Activity 23,016.78 SCRMA checks issued 7/15/19-7/21/19 Liability Trust - Claims 0.00 Claim checks issued 7/15/19-7/21/19 Retiree Health Insurance 0.00 Health Reimbursment checks issued 7/15/19-7/21/19 Flexible Spending Card 734.81 Employee Health and DCA card charges 479.962.72 DATE OF RATIFICATION: 7/29/19 TOTAL PAYMENTS BY WIRE: Certified as to the accuracy of the wire ``transfers by: lam% 91l Depot City Treasurer I Date Director of Financ Date ity Manager Date Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo. PACity Treasurer%Wire Transfers\Wire Transfers 10-01-18 to 9-30-19 479,962.72 7/29/2019 1/1 22 a N x N z Iwi 7 C yL j ? a � gw a rZz zQ3 � �w 3 "o z <¢ z JC� >woo QZ 1�9O r2SdLL m - F ] U 27 , D f-IOiYr f i.3 Nm arzLLz ¢LL u, j Z w U Co ley ¢ a w C i Z o O w w K r r }LL} 7 a Q 6 r r r r '� w z z S N N N 6l'•X 0: Nz Z z N r0� �� LL Q� z ti j LL rg s -i I LLq Z z r z z a R v 1 t Rii F y U y� W r r Z U Z 7 7 W S' 7 7 W? N W a N ti aLL7aQuaNOF�a LLLLOZgJ�y� a W,000 o wLL W Wg 6. iq�O W W Q dTjLL W a(J]f fy�J 77a m ¢X www r tzu�6yN�yNl ww 'p2po O� > Of V Qu��yy�77 QaQLLg66Op uri an V' r� Q 4 2 U a I r f LL U LL Q U z LL Cl W] l C W N og$��• r.---'�"'ge`3ai�I�9iI�mI'olOn�n�r T �s a s w W W 4a Q Tom, X 2 W G e V y l z r tt w x s a [ ,j e? 71 V 5 a a �� J rn a asy W W w U V U W s a Z A ix VST W .@ w a f m d `m V O gs ui as m a Z' N sa ii Cm N .N 1 a p 2 W V yi o 'I -- k C lr • iT^ Q W-__ W In an oo EE _ c r QO—V V I+ = rw 2 a W q Z ui 7 =m Q G II Z II 11 Q ~ N U —Li Iii U LL• co 23 1� fV T N tD Iii Q a7 O O Illi w Ul OI w N z Iwi 7 C yL j ? a � gw a rZz zQ3 � �w 3 "o z <¢ z JC� >woo QZ 1�9O r2SdLL m - F ] U 27 , D f-IOiYr f i.3 Nm arzLLz ¢LL u, j Z w U Co ley ¢ a w C i Z o O w w K r r }LL} 7 a Q 6 r r r r '� w z z S N N N 6l'•X 0: Nz Z z N r0� �� LL Q� z ti j LL rg s -i I LLq Z z r z z a R v 1 t Rii F y U y� W r r Z U Z 7 7 W S' 7 7 W? N W a N ti aLL7aQuaNOF�a LLLLOZgJ�y� a W,000 o wLL W Wg 6. iq�O W W Q dTjLL W a(J]f fy�J 77a m ¢X www r tzu�6yN�yNl ww 'p2po O� > Of V Qu��yy�77 QaQLLg66Op uri an V' r� Q 4 2 U a I r f LL U LL Q U z LL Cl W] l C W N og$��• r.---'�"'ge`3ai�I�9iI�mI'olOn�n�r T �s a s w W W 4a Q Tom, X 2 W G e V y l z r tt w x s a [ ,j e? 71 V 5 a a �� J rn a asy W W w U V U W s a Z A ix VST W .@ w a f m d `m V O gs ui as m a Z' N sa ii Cm N .N 1 a p 2 W V yi o 'I -- k C lr • iT^ Q W-__ W In an oo EE _ c r QO—V V I+ = rw 2 a W q Z ui 7 =m Q G II Z II 11 Q ~ N U —Li Iii U LL• co 23 CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 7129119 THROUGH 8!4119 Date P_ _ayee Descriation 7/29/2019 IRS 300,954.60 Federal 941 Deposit 7/29/2019 Employment Development 5,114.42 State SDI payment 7/29/2019 Employment Development 65,886.99 State PIT Withholding 7/2912019 Nationwide NRS EFT 32,769.96 EFT 457 payment 7/29/2019 Unum 227.40 Long Term Care Premium - May 7/30/2019 Nationwide NRS EFT 50,147.58 EFT 457 payment 7/31/2019 CA Infrastructure Bank 435,243.42 Semi Annual Infrastructure payment 7/31/2019 Cal Pers 1,600.00 Admin Fee - Retired Annuitant Late 7/31/2019 Cal Pers 200.00 Admin Fee - Late Payroll Reporting 8/1/2019 State of CA EFT 1,452.91 EFT Child support payment 8/2/2019 California EDD 144.95 Reconciliation payment 8/2/2019 California EDD 37.74 Reconciliation payment 7122119-7128/19 Workers Comp Activity 24,896.02 SCRMA checks issued 7122119-7/28/19 Liability Trust - Claims 9,448.10 Claim checks issued 7122119-7/28/19 Retiree Health Insurance 0.00 Health Reimbursment checks issued 7/22/19-7/28119 Flexible Spending Card 1,732.25 Employee Health and DCA card charges 929,$56.34 DATE OF RATIFICATION: 812119 TOTAL PAYMENTS BY WIRE: Certified as to the accuracy of the wire transfers by: Deputy City Treasur. r II Date Dir c or of Finance Date City Manager - Date Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo. 929,856.34 P:SCity TreasurerX ire TransferslCopy of Wire Transfers 10-01-18 to 9-30-19 812/2019 111 24 A a 0 3 m Ol N 00 {p0 88 $ Ni 0 Of(mppv SO N T' W O N °i N N 4 � Z W N N 2 a V U 2 LU � � O LL W Q¢ OO W V ZF J V Z 00 Q ?�¢a o(�q/�yy�yy13�m QFaw'Z=cecSWi�'�f�r� 5 LL a w a ~ �)u+1013 z z Ju �ax W sbaua��a 3 a Q vuial y��cKia WWaa¢w5a �Sp' V N a� HH a M �gy+�jQaa a LL 9 a 25 CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 815119 THROUGH 8111119 Date Payee _Description _ 8/5/2019 Cal Pers 8,949.25 EFT Retirement Safety-Fire-PEPRA New 25020 8/5/2019 Cal Pers 12,395.74 EFT Retirement Safety-Police-PEPRA New 25021 8/5/2019 Cal Pers 31,444.83 EFT Retirement Misc - PEPRA New 26013 8/5/2019 Cal Pers 50,931.89 EFT Retirement Misc - Classic 27 8/5/2019 Cal Pers 74,548.18 EFT Retirement Safety Police Classic - list Tier 28 8/5/2019 Cal Pers 52,128.09 EFT Retirement Safety Fire- Classic 30168 8/5/2019 Cal Pers 4,431.13 EFT Retirement Sfty Police Classic -2nd Tier 30169 8f7/2019 State of CA EFT 1,452.91 EFT Child support payment 8/9/2019 Manufacturers & Traders 29,193.69 457 payment Vantagepoint 8/9/2019 Manufacturers & Traders 550.00 IRA payment Vantagepoint 7/29/19-8/4/19 Workers Comp Activity 106,448.37 SCRMA checks issued 7/29/19-8/4/19 Liability Trust - Claims 0.00 Claim checks issued 7129/19-8/4/19 Retiree Health insurance 18,082.16 Health Reimbursment checks issued 7129/19-8/4/19 Flexible Spending Card 584.70 Employee Health and DCA card charges 391,140.94 DATE OF RATIFICATION: 8112119 TOTAL PAYMENTS BY WIRE: 391,140.94 Certified as to the accuracy of the wire transfers by: Deputy City Treasu, er It Date ?'-13_ Date 15- S "/-/* Ci Date Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo. P:\CityTreasureftWireTransfers\Copy of Wire Transfers 10-01-18 to 9-30-19 8/12/2019 1/1 26 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA STATEMENT AGENDA HEADING: Consent AGENDA DESCRIPTION: Consideration and possible action to receive and file a resolution in compliance with Senate Bill 1205; Annual reporting of state mandated fire and life safety inspections (Fiscal Impact: $0.00) RECOMMENDED COUNCIL ACTION: 1. Receive and file Resolution Number ### 2. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. California Senate Bill 1205 2. Resolution ### FISCAL IMPACT: None Amount Budgeted: $0.00 Additional Appropriation: N/A Account Number(s): STRATEGIC PLAN: Goal: 2 Support Community Safety and Preparedness Objective: 1 El Segundo is a safe and prepared city. ORIGINATED BY: James Carver, Fire Marshal REVIEWED BY: Christopher Donovan, Fire Chief CD APPROVED BY: Scott Mitnick, City Manager �& S14\— BACKGROUND AND DISCUSSION: The California Health and Safety Code requires local fire department to annually inspect state mandated occupancies, including hotels, apartments, schools and high rise buildings. On December 2, 2017, the Ghost Ship fire occurred in the City of Oakland, where 36 people perished in a make -shift assembly and artist loft occupancy. This fire became the largest fatality fire in the history of the State of California and was determined to be a state mandated occupancy. In the fire's aftermath, it became apparent that the Oakland Fire Department had not inspected the building, as required for a Group R Residential occupancy. In the following months news media outlets identified additional bay area fire departments which had not completed the annual inspection of Group E and Group R Occupancies in violation of Health and Safety Code Sections 13146.2 and 13146.3. 27 In response to the Ghost Ship fire, including learning that local fire departments were not performing state mandated annual inspections, the California Legislature passed Senate Bill 1205 (SB 1205) to ensure life safety inspection and enforcement efforts are known to the elected bodies of each city, county or special district with a fire department. SB 1205 requires fire departments to make an official report, on an annual basis, informing the elected body of the number of State - mandated fire inspection performed in the previous calendar year or fiscal year. This requirement has been codified in California Health and Safety Code Section 13146.4. In compliance with SB 1205, the following data is presented which identifies those California State Fire Marshal mandated inspections completed within El Segundo for calendar year 2018: B Occupancies: High rise buildings — 21 occupancies, 21 inspected E Occupancies: El Segundo Unified School District campuses, High School — 8 occupancies, *5 inspected Vista Mar High School and Wiseburn/DaVinci R occupancies: R-1 (Hotels/Motels) — 13 occupancies, 13 inspected R-2 (Apartments/condominiums townhomes, 3 or more dwelling units) — 518 occupancies, **254 inspected R-2.1 (Residential Care Facilities) — 1 occupancy, 1 inspected *E Occupancy inspections were impacted by construction of the new DaVinci School, which caused the data to be skewed; the report to the State Fire Marshal listed the occupancy as not being inspected, although construction inspections were conducted as mandated by code. Additionally one inspector was on an extended leave which caused a reduction in E occupancy inspections **R-2 Occupancy inspections include the exterior of the building, exit routes and other built-in fire protection systems (interior inspections of living spaces is prohibited). The department will continue to strive for 100% compliance, utilizing new fire inspection technology which makes the inspection process less time intensive. 28 RESOLUTION NO. A RESOLUTION BY THE EL SEGUNDO CITY COUNCIL APPROVING ACKNOLWEDGING RECEIPT MADE BY THE FIRE CHIEF OF THE EL SEGUNDO FIRE DEPARTMENT REGARDING THE INSPECTION OF CERTAIN OCCUPANCIES REQUIRED TO PERFORM ANNUAL INSPECTIONS IN SUCH OCCUPANCIES PURSUTANT TO SECTIONS 13146.2 AND 13146.3 OF THE CALIFORNIA HEALTH AND SAFETY CODE. WHEREAS, California Health and Safety Code Section 13146.4 was added in 2018 and became effective on September 27, 2018; and WHEREAS, California Health and Safety Code Sections 13146.2 and 133146.3 requires all fire departments, Including the El Segundo Fire Department, that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, lodging house, apartment house and certain residential care facilities for compliance with building standards, as provided; and WHEREAS, California Health and Safety Code Section 13146.2 requires all fire departments, including the El Segundo Fire Department, that provide fire protection services to report annually to its administering authority on its compliance with Sections 13146.2 and 213146.3; and WHEREAS, the City Council of the City of El Segundo intends this Resolution to fulfill the requirements of the California Health and Safety Code regarding acknowledgement of the El Segundo Fire Department's compliance with California Health and Safety Code Sections 13146.2 and 13146.3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of El Segundo that said Council expressly acknowledges the measure of compliance of the El Segundo Fire Department with California Health and Safety Code Sections 13146.2 and 13146.3 in the area encompassed by the City of El Segundo as follows: A. HIGH RISE GROUP B OCCUPANICES: High Rise Group B occupancies are generally those public buildings that are more than 75 feet in height. Within the City of El Segundo, there lie 21 Group B High Rise occupancies. During calendar year 2018, the El Segundo Fire Department completed the annual inspection of 21 Group B occupancies High Rise occupancies. This is a compliance rate of 100% for this reporting period. -1- 29 B. EDUCATIONAL GROUP E OCCUPANCIES: Educational Group E occupancies are generally those public and private schools, used by more than six persons at any one time for educational purposes through the 12th grade. Within the City of El Segundo, there lie eight Group E occupancies, buildings, structures and/or facilities. During calendar year 2018, the El Segundo Fire Department completed the annual inspection of five Group E occupancies, buildings, structures and/or facilities. This is a compliance rate of 63% for this reporting period. Additional items of note regarding this compliance rate can be found in the accompanying staff report for this resolution. C. RESIDENTIAL GROUP R OCCUPANCIES: Residential Group R occupancies, for the purpose of this resolution, are generally those occupancies containing sleeping units, and including hotels, motels, apartments (three units or more), etc. as well as other residential occupancies (including two residential care facilities). These residential care facilities have a number of different sub -classifications, and they may contain residents or clients that have a range of needs, including those related to custodial care, mobility impairments, cognitive disabilities, etc. Within the City of El Segundo, there lie five hundred thirty two (532) Group R occupancies (and their associated sub -categories of this nature. buildings, structures and/or facilities. During calendar year 2018, the El Segundo Fire Department completed the annual inspection of two hundred sixty eight (268) Group R occupancies, buildings, structures and/or facilities. This is a compliance rate of 50% for this reporting period. Additional items of note regarding this compliance rate can be found in the accompanying staff report for this resolution. PASSED AND ADOPTED this 20th day of August, 2019. ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: BY: Mark Hensley, City Attorney -2- Drew Boyles, Mayor 30 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO I, Tracy Weaver, City Clerk of the City of El Segundo, California, DO HEREBY CERTIFY that the whole number of members of the City Council of the said City is five; that the foregoing resolution, being RESOLUTION NO. was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the City Clerk of said City, all at a regular meeting of the said Council held on the 201h day of August, 2019 and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTENTION: WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 201h day of August, 2019. Tracy Weaver, City Clerk Of the City of El Segundo, California (SEAL) -3- 31 `"' �'Y✓ STAT[ Of CALIFORNIA AUTHENTICATED P,i,,l nig ELECTRONIC LEGAL MATERIAL Senate Bill No. 1205 CHAPTER 854 An act to add Section 13146.4 to the Health and Safety Code, relating to fire protection. [Approved by Governor September 27, 2018. Filed with Secretary of State September 27, 2018.] LEGISLATIVE COUNSEL'S DIGEST SB 1205, Hill. Fire protection services: inspections: compliance reporting. Existing law requires the chief of any city or county fire department or district providing fire protection services and his or her authorized representatives to inspect every building used as a public or private school within his or her jurisdiction, for the purpose of enforcing specified building standards, not less than once each year, as provided. Existing law requires every city or county fire department or district providing fire protection services that is required to enforce specified building standards to annually inspect certain structures, including hotels, motels, lodging houses, and apartment houses, for compliance with building standards, as provided. This bill would require every city or county fire department, city and county fire department, or district required to perform the above-described inspections to report annually to its administering authority, as defined, on the department's or district's compliance with the above-described inspection requirements, as provided. The bill would require the administering authority to acknowledge receipt of the report in a resolution or a similar formal document. To the extent this bill would expand the responsibility of a local agency, the bill would create a state -mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. The people of the State of California do enact as follows: SECTION 1. Section 13146.4 is added to the Health and Safety Code, to read: 13146.4. (a) Every city or county fire department, city and county fire department, or district required to perform an annual inspection pursuant 93 32 Ch. 854 —2— to 2— to Sections 13146.2 and 13146.3 shall report annually to its administering authority on its compliance with Sections 13146.2 and 13146.3. (b) The report made pursuant to subdivision (a) shall occur when the administering authority discusses its annual budget, or at another time determined by the administering authority. (c) The administering authority shall acknowledge receipt of the report made pursuant to subdivision (a) in a resolution or a similar formal document. (d) For purposes of this section, "administering authority" means a city council, county board of supervisors, or district board, as the case may be. SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. 17 93 33 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to waive formal bidding requirements and authorize the City Manager to execute a five-year contract, in a form approved by the City Attorney, with Joe's Sweeping, Inc., dba Nationwide Environmental Services for Citywide Street Sweeping services, effective October 1, 2019. (Fiscal Impact: $1,052,350.33 over five years.) RECOMMENDED COUNCIL ACTION: 1. Waive formal bidding purchasing requirements pursuant to El Segundo Municipal Code § 1-7-9(A); 2. Authorize the City Manager to execute a five-year contract, in a form approved by the City Attorney, with Nationwide Environmental Services for Citywide Street Sweeping services in the amount of $1,052,350.33, effective October 1, 2019; or, 3. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: Joe's Sweeping, Inc. dba Nationwide Proposal FISCAL IMPACT: Included in Adopted Budget Amount Budgeted: $215,000.00 Additional Appropriation: N/A Account Number(s): 001-400-4201-6206 STRATEGIC PLAN: Goal: 4 Develop Quality Infrastructure and Technology Objective: (a) El Segundo's physical infrastructure supports an appealing, safe, and effective City ORIGINATED BY: Jasmine Allen, Senior Management Analyst SGS. APPROVED BY: Ken Berkman, Public Works Director APPROVED BY: Scott Mitnick, City Manager P( _�dt 5fv\- BACKGROUND AND DISCUSSION: Efficient and effective street sweeping is a key component of any street maintenance program. It protects public health and safety and is required by law under the National Pollutant Discharge Elimination Permit (NPDES Permit) issued by the State Water Resources Control Board to all public agencies under the Federal Clean Water Act. 34 Joe's Sweeping, Inc., dba Nationwide Environmental Services (Nationwide) has been serving the City of El Segundo since 1994. In 2009, just prior to the end of Nationwide's previous contract, the City released a Request for Proposals (RFP) to obtain proposals from qualified vendors for street sweeping services. The other bids received were substantially higher than the City's contract with Nationwide, ranging from $259,000 to $317,000 per year. At that time, staff also investigated whether the services could be provided at a lower rate by piggybacking on another local government contract. The lowest rate found was 40% more than the City was paying Nationwide. Subsequently, Nationwide proposed a five-year extension to their 2009 contract with a new base rate of $139,237.62 plus 3% annual escalation. The City accepted that proposal and entered into a five-year contract agreement through September 30, 2014 with an option to renew for an additional five years, through September 30, 2019. The 2018-2019/final term total rate with Nationwide was $200,657.46 ($184,937.76 base rate + contractually -provided fuel pricing adjustments). As the end of the current contract term expires on September 30, 2019, Nationwide has submitted a proposal for the City's consideration consisting of five years with a 3% annual increase for only year 3 and year 4. The rates below include the current CNG fuel prices: Year Annual Base Rate 2019/20 $204,370.60 2020/21 $204,370.60 2021/22 $210,401.51 2022/23 $216,603.81 2023/24 $216,603.81 Monthly Base Rate $17,030.88 $17,030.88 $17,533.46 $18,050.32 $18,050.32 Waiver of Formal Bidding Requirements Contracts for general services exceeding $50,000 per fiscal year are subject to formal bidding requirements (ESMC § 1-7-8). The City Council, however, may waive the purchasing procedures when the City's best interests are served by a direct award of a contract without a competitive selection process (ESMC § 1-7-9(A)). As shown above, the current rates provided by Nationwide are still significantly lower than the previous bids received from the RFP in 2009. Moreover, Nationwide has exceeded expectations with their services in the City, most recently working diligently with staff to analyze acid modify the City's sweeping schedule to accommodate the new four-day trash and recycling collection schedule, including very specific requests from the El Segundo Unified School District. For these reasons, staff respectfully recommends City Council authorize the City Manager to execute a five-year contract, in a form approved by the City Attorney, with Nationwide Environmental Services for Citywide Street Sweeping services. The new contract term will be from October 1, 2019 through September 30, 2024. 35 AGREEMENT FOR STREET SWEEPING SERVICES BETWEEN THE CITY OF EL SEGUNDO AND JOE'S SWEEPING, INC., dba NATIONWIDE ENVIRONMENTAL SERVICES THIS STREET SWEEPING AGREEMENT ("Agreement") is made and entered into this 30th day of September, 2019, by and between the CITY OF EL SEGUNDO, a general law city and municipal corporation ("CITY") and JOE'S SWEEPING, INC., a California corporation, dba NATIONWIDE ENVIRONMENTAL SERVICES ("CONTRACTOR"). The Parties agree as follows: 1. CONSIDERATION. A. As partial consideration, CONTRACTOR agrees to perform the work listed in the SCOPE OF SERVICES, below; B. As additional consideration, CONTRACTOR and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONTRACTOR for its services as follows: i. For the first year of the agreement (2019/20), an annual base rate of $204,370.60 and a monthly base rate of $17,030.88; ii. For the second year of the agreement (2020/21), an annual base rate of $204,370.60 and a monthly base rate of $17,030.88; iii. For the third year of the agreement (2021/22), an annual base rate of $210,401.51 and a monthly base rate of $17,533.46; iv. For the fourth year of the agreement (2022/23), an annual base rate of $216,603.81 and a monthly base rate of $18,050.32; V. For the fifth year of the agreement (2023/24), an annual base rate of $216,603.81 and a monthly base rate of $18,050.32. 2. TERM; OPTIONS TO EXTEND. The term of this Agreement will be from October 1, 2019 to September 30, 2024. CITY may extend the term of this Agreement by written notice to the CONTRACTOR no later than 30 days before the expiration of the term of this Agreement. 3. SCOPE OF SERVICES. A. CONTRACTOR will perform services listed in the attached Exhibit A. B. CONTRACTOR will, in a workmanlike manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary Page 1 of 8 36 or proper to perform and complete the work and provide the professional services required of CONTRACTOR by this Agreement. C. FUEL PRICING ADJUSTMENT. It is agreed that fuel used by CONTRACTOR constitutes 17% of its total operating costs. It is agreed that the baseline monthly fuel cost for CNG fuel is $3.38 per gallon. The Fuel Pricing Adjustment is calculated according to the following formula: Fuel Pricing Adjustment = 0.17 X Base Average Monthly Payment X [(Average Monthly Fuel Cost/$3.38) -1] The Average Monthly Fuel Cost is the average price of fuel per gallon of CNG purchased by CONTRACTOR for performance of this Agreement (and solely within CITY's jurisdictional boundaries) in the month for which payment is invoiced. The Fuel Pricing Adjustment cannot exceed 8.5% of the Base Monthly Payment. The total Fuel Pricing Adjustments in any year cannot exceed 8.5% of the of the Annual Total of Base Monthly Payments. Fuel Pricing Adjustment cannot be compounded from month to month. The Public Works Director may approve, partially approve or deny the Fuel Pricing Adjustment. i. F;aample- In the first month of the first year of the contract term the average price of fuel is $3.38 per gallon. MONTHLY PAYMENT = $17,030.88 + 0.17 X $17,618.51 X ($3.48/$3.38-1) = $17,116.54 ii. Example. In the second month of the first year of the contract term the average price of fuel is $3.28 per gallon. MONTHLY PAYMENT = $17,030.88 + 0.17 X $17,030.88 X ($3.28/$3.38-1) = $16,945.23 iii. l;\,aniple.. The maximum monthly payment in the first year (as increased by the maximum fuel pricing adjustment) is $17,030.88 + 8.5% _ $18,478.51. The maximum total of payments in the first year is $204,370.60 + 8.5% = $221,742.10 iv. Example. The minimum monthly payment in the first year, as decreased by the maximum fuel pricing adjustment is $17,030.88 - 8.5 % =$15,583.26. The minimum total of payments in the first year is $204,370.60 - 8.5% = $186,999.10 4. PREVAILING WAGES. — N/A. 5. PAYMENTS. For CITY to pay CONTRACTOR as specified by this Agreement, CONTRACTOR must submit a detailed invoice to CITY. 6. FAMILIARITY WITH WORK. A. By executing this Agreement, CONTRACTOR represents that CONTRACTOR Page 2 of 8 37 has Thoroughly investigated and considered the scope of services to be performed; ii. Carefully considered how the services should be performed; and ill. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. B. If services involve work upon any site, CONTRACTOR warrants that CONTRACTOR has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should CONTRACTOR discover any latent or unknown conditions that may materially affect the performance of the services, CONTRACTOR will immediately inform CITY of such fact and will not proceed except at CONTRACTOR's own risk until written instructions are received from CITY. 7. INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONTRACTOR will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: .I v[)e of Insurance Commercial general liability: Business automobile liability Workers compensation Limits (combined single) $2,000,000 $1,000,000 Statutory requirement. B. Commercial general liability insurance will meet or exceed the requirements of ISO -CGL Form No. CG 00 01 11 85 or 88, or equivalent. 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 will 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 or subject to reduction except upon thirty (30) days prior written notice to City. C. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto). D. CONTRACTOR will furnish to City duly authenticated Certificates of Insurance Page 3 of 8 38 evidencing maintenance of the insurance required under this Agreement, endorsements as required herein, 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. E. Should CONTRACTOR, for any reason, fail to obtain and maintain the insurance required by this Agreement, City may obtain such coverage at CONTRACTOR's expense and deduct the cost of such insurance from payments due to CONTRACTOR under this Agreement or terminate. 8. TIME FOR PERFORMANCE. CONTRACTOR will not perform any work under this Agreement until: A. CONTRACTOR furnishes proof of insurance as required under Section 7 of this Agreement; and B. CITY gives CONTRACTOR a written Notice to Proceed. C. Should CONTRACTOR begin work in advance of receiving written authorization to proceed, any such professional services are at CONTRACTOR's own risk. 9. TERMINATION. A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. Notice of termination will be in writing. B. CONTRACTOR may terminate this Agreement upon providing written notice to CITY at least thirty (30) days before the effective termination date. C. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. D. By executing this document, CONTRACTOR waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. 10. INDEMNIFICATION. A. CONTRACTOR indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, reasonable attorney's fees and penalties), injuries, or liability, arising out of this Page 4 of 8 39 Agreement, or its performance. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONTRACTOR will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY 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 volunteers. C. CONTRACTOR 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 Agreement. E. The requirements as to the types and limits of insurance coverage to be maintained by CONTRACTOR as required by this Agreement, 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 CONTRACTOR pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 11. INDEPENDENT CONTRACTOR. CITY and CONTRACTOR agree that CONTRACTOR will act as an independent contractor and will have control of all work and the manner in which it is performed. CONTRACTOR will be free to contract for similar service to be performed for other employers while under contract with CITY. CONTRACTOR is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONTRACTOR as to the details of doing the work or to exercise a measure of control over the work means that CONTRACTOR will follow the direction of the CITY as to end results of the work only. 12. NOTICES. A. All notices given or required to be given pursuant to this Agreement will be in writing and may be given by personal delivery or by mail. Notice sent by mail will be addressed as follows: To CITY: Ken Berkman City of El Segundo 350 Main Street El Segundo, CA 90245 Page 5 of 8 40 To CONTRACTOR: Ani Samuelian Nationwide Environmental Services 11914 Front Street Norwalk, CA 90650 Ani@nes-sweeping.com B. When addressed in accordance with this paragraph, notices will be deemed given upon deposit in the United States mail, postage prepaid. In all other instances, notices will be deemed given at the time of actual delivery. C. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 13. TAXPAYER IDENTIFICATION NUMBER. CONTRACTOR will provide CITY with a Taxpayer Identification Number. 14. WAIVER. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 15. CONSTRUCTION. The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party. 16. SEVERABLE. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 17. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 18. WAIVER. Waiver of any provision of this Agreement will not be deemed to constitute a waiver of any other provision, nor will such waiver constitute a continuing waiver. 19. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 20. AUTHORITY/MODIFICATION. This Agreement is not binding upon CITY until executed by the City Manager. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written agreement. Page 6 of 8 41 21. ACCEPTANCE OF ELECTRONIC SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic (.pdf) or facsimile transmission. Such electronic or facsimile signature will be treated in all respects as having the same effect as an original signature. 22. EFFECT OF CONFLICT. In the event of any conflict, inconsistency, or incongruity between any provision of this Agreement, its exhibits, the purchase order, or notice to proceed, the provisions of this Agreement will govern and control. 23. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, war, terrorist act, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties' control, then the Agreement will immediately terminate without obligation of either party to the other. 24. ENTIRE AGREEMENT. This Agreement and its exhibit(s) constitute the sole agreement between CONTRACTOR and CITY respecting the services described in scope of work. To the extent that there are additional terms and conditions contained in Exhibit "A" that are not in conflict with this Agreement, those terms are incorporated as if fully set forth above. There are no other understandings, terms or other agreements expressed or implied, oral or written. [SIGNATURES ON FOLLOWING PAGE] Page 7 of 8 42 IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year first hereinabove written. CITY OF EL SEGUNDO JOE'S SWEEPING, INC. a general law city. Scott Mitnick, City Manager ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney Insurance Reviewed by: By: Its: Taxpayer ID No. Contractor State License No. Contractor City Business License No. Page 8 of 8 43 City of El Segundo Street sweeping Specifications EXHIBIT A SCOPE OF TIME WORK Page 1 A. Work to be performed: The purpose of this contract will be to provide a thorough, timely, and responsive sweeping of streets and alleys. These specifications will be interpreted toward that purpose. The work to be done under this contract equipment, tools, and any other incidental services for the City of El Segundo: includes furnishing of all labor, material, expense necessary to perform the following 1. Unless otherwise provided, the Contractor will sweep City streets, alleys and parking lots of all debris and refuse for a period of five (5) years. 2. Parking lots, streets and alleys in the downtown area, including medians and intersections, must be swept one (1) time each week according to the schedule provided by the Street Maintenance Supervisor. 3. Additional sweeping, for which the Contractor is entitled to additional compensation as provided in Section N (a), may be required as follows: a. Frnergenev Sweeping. Contractor must respond within one (1) hour to emergency requests for cleanup. b. Special Events. Contractor must provide street sweeping for special events (such as parades, street fairs, etc.) After receiving appropriate notice from the City. 4. Dis)nsai of Sw e in Debris and Refuse. Contractor must dump debris and refuse collected from City streets at a site provided by the City. Site will be located at the City of El Segundo Maintenance Facility, 150 Illinois Street, and E1 Segundo. Hauling and disposal of collected refuse from the disposal site is the responsibility of the City. 5. Water. City will provide sufficient water for the street sweeping equipment necessary to comply with these specifications. Contractor to make arrangements with the Water/ Wastewater Division for available fire hydrants. The Contractor must take measures to. Avoid wasting water and conserve wherever and whenever possible in operations. 6. Daily Statement. Contractor m u st submit daily statement reporting total loads of debris and refuse hauled to dumpsite. Contractor must also submit a daily statement reporting sweeper miles. Working Hours. 1. Business districts must be swept between the hours of 3:00 a.m. And 7:00 a.m. In accordance with the schedule provided by the Street Maintenance Supervisor. 44 City of El Segundo Street sweeping Specifications Page 2 2. Residential districts must be swept between the hours of 7:00 a.m. and 1:00 p.m. in accordance with the schedule provided by the Street Maintenance Supervisor. C. Uuipme tt and,,,UL of F:quit?inen . Contractor's street sweeping equipment must meet the following requirements: 1. Street sweeping equipment and performance must comply with the highest standards of the industry. Sweeper speed and broom pattern must follow manufacturer's recommendations. 2. Contractor must use standard heavy street sweeping equipment as needed to clean the City streets of paper, dirt, rocks, leaves and debris. 3. Contractor. Must use equipment deemed acceptable by express written approval of the Director of Public Works. Equipment must comply with all appropriate Federal and State Regulations including meeting all current Air Quality Management District regulations. 5. Contractor's equipment is subject to inspection by the Director of Public Works, or designee. Upon written notification that any equipment does not comply with the City's standards, the contractor must remove such equipment from service and not again use unless inspected and approved in writing by the Director of Public Works. D. Public Relations. 1. Contractor is required to have radio -equipped street sweepers or a supervisor available by telephone on a twenty-four (24) hour basis who is assigned to provide direct and prompt attention to requests from the City for emergency service. 2. Contractor must, in person or through its agent, investigate any complaint which may concern, or be involved in, the performance of the contract. Contractor will report to the Director of Public Works, or designee, the following working day as to the action taken with reference to the complaint and, when necessary, complete the Service Request form which will remain on file at City Hall. Complaints received before noon - must be answered the same day; complaints received after noon may be answered the following day. E. Sweeping Routes. City will provide Contractor with schedule and map delineating those districts within the City marked for sweeping Monday through Friday inclusive. The sweeping schedule must be maintained unless a change therein is first approved in writing by the Director of Public Works and notice is given as provided below. F. Failure to Sweep. Should the Contractor fail to sweep, or should the City temporarily exclude streets from sweeping (i.e., streets that are closed for construction activity), the City will deduct from the Contractor's next monthly payment a sum of money equal to the number of hours not swept, divided by the number of hours to be swept during the month, times the monthly payment. 45 City of El Segundo Street sweeping Specifications Page 3 G. Office for Inquiries and Complaints. The Contractor will maintain an office at a fixed location and maintain a telephone. The telephone number must be listed in the telephone directory in the contractor's name. A contractor representative must be available to answer the phone between the hours of 8:OOa.m. And 5:OOp.m. each working day. The telephone number of a designated employee, available between 5:00 p.m. And 8:00 a.m. For emergency calls and complaints, must be furnished the Director of Public Works. The contractor must maintain a written log of all complaints including a description of what action was taken or the reason for non -action. The log is City property, a public record, and opens to the City's scrutiny. The Contractor must make every commercially reasonable effort to respond to complaints on the same day they are received and must report to the Director of Public Works within twenty-four (24) hours as to the action taken concerning each complaint. Ert City of El Segundo Street Sweeping Specifications CITY OPERATED PARKING LOTS LOCATION / DESCRIPTION OF LOTS DIMENSIONS ANNUAL SQ. FT. 1. N/W of Richmond St. and Franklin Ave. 125' x 140' 910,000 2. E of Main St. between Pine Ave. and Holly Ave. 50' x 140' 364,000 3. S/W of Main St. and Mariposa Ave. 100' x 140' 728,000 4. S/E of Standard St. and Holly Ave. 75' x 140' 546,000 5. N of Grand Ave. between Main St. and Standard St. (3 Lots Police & Fire) 80' x 150' 624,000 130' x 130' 878,800 100' x 140' 728,000 6. N/W Corner of Grand Ave. and Eucalyptus St. 40' x 130' 270,400 7. El Segundo Recreational Park (North Parking Lot) 150' x 335' 2,613,000 8. El Segundo Recreational Park (South Parking Lot) 70' x 700' 2,548,000 9. Water Division, 400 Lomita St. 70' x 250' 910,000 10. Water Division Parking Structure (Roof Lot) 130' x 200' 1,352,000 11. El Segundo Maintenance Facility, 150 Illinois St. (City Yard) 70' x 250' 910,000 Total Annual Square Feet 13,382,200 47 CITY OF EL SEGUNDO Streets, Alleys, and Parking Lot Sweeping FEE SCHEDULE Term: Five (5) years ITEM ESTIMATED DESCRIPTION UNIT PRICE ANNUAL NO. QUANTITIES IN FIGURES AMOUNT 1 8,570 Sweeping of streets and alleys (weekly). $21.90 $187,683.00 Curb Miles First Year 2019/2020 Per Curb Mile 2 13,382,200 Sweeping of parking lots (weekly). $0.001247 $16,687.60 Sq. Ft. First Year 2019/2020 Per Sq. Ft, 3 20 Hourly rate for additional sweeping. Hours First Year 2019/2020 Free of Charge Free of Charge 4 8,570 Sweeping of streets and alleys (weekly). $21.90 $18%,683,00 Curb Miles Second Year 2020/2021 Per Curb Mile 5 13,382,200 Sweeping of parking lots (weekly). $0.001247 $16,687.60 Sq. Ft. Second Year 2020/2021 Per Sq. Ft. 6 20 Hourly rate for additional sweeping. Hours Second Year 2020/2021 Free of Charge Free of Charge 7 8,570 Sweeping of streets and alleys (weekly). $22.56 $193,339.20 Curb Miles Third Year 2021/2022 Per Curb Mile 8 13,382,200 Sweeping of parking lots (weekly). $0.001275 $17,062.31 Sq. Ft. Third Year 2021/2022 Per Sq. Ft. 9 20 Hourly rate for additional sweeping. Hours Third Year 2021/2022 Free of Charge Free of Charge 10 8,570 Sweeping of streets and alleys (weekly). $23.24 $199,166.80 Curb Miles Fourth Year 2022/2023 Per Curb Mile 13,382,200 Sweeping of parking lots (weekly). $0.001303 11 Sq. Ft. Fourth Year 2022/2023 Per Sq. Ft. $17,437.01 12 20 Hourly rate for additional sweeping. Free of Charge Free of Charge Hours Fourth Year 2022/2023 13 8,570 Sweeping of streets and alleys (weekly). $23.24 $199,166.80 Curb Miles Fifth Year 2023/2024 Per Curb Mile 14 13,382,200 Sweeping of parking lots (weekly). $0.001303 $17,437.01 Sq. Ft. Fifth Year 2023/2024 Per Sq. Ft. 15 20 Hourly rate for additional sweeping. Hours Fifth Year 2023/2024 Free of Charge Free of Charge TOTAL BASE AMOUNT (Items 1-15) $1,052,350.33 TOTAL BASE AMOUNT WRITTEN IN WORDS One Million Fifty -Two Thousand Three Hundred Fifty Dollars and Thi -Three Cents 07/31/2019 48 0 z IS GNVIAHVW 1s V11WOl 1S VHH31S 1S NN3d Id V2JHDIS 1S NN3d WHE"d MUM w Q O a Of Q 1S VN32IV 2 as snld klVon3 J CL v O_ m .� � � O 1S ONVIAHVW i w a Q O J W J Z = CL 1S V11WOl is V11W01 E a) 1S V2:NDIS LU J >f J LU 1S NN3d E � Y U- L U- M a 0 1S NOM3HS d m d Z CD O C F- 0: � d L) Q N l' N iS VN32ib C 2 O M IM G O_ L CD W� a V Q. se L w m Z a a 1S MMINV1S y, G O C LLai �? t O Ln ale Q> i d O C IC L 1S NIVW Y .Q Ci LL m o a LU O � a y a L p CD 1S ONOWHOIH N < O C Y L m CL v ,0 d z d N Q O N 3 V = d N W 3 0S SndWVOU IL 2i�d M DS SndWVO 0 w O O a a� LU Lai U is 180d2:Ilvl TF a O a a w is svio l N Md A3 -Ino 1S HSVN N CONTINENTAL BLVD w Q 0 z 9 C7 w LU 0 z rya 0 w .a L w Q Z J Y Z LL w 1S SVSNVN 0 J 07 0 0 z D O LU U) J W LU 1S SVIJnOa S GA -le Va3Alnd3S S aA18 V(13A-Ind3S N LL w 1S VNVIaNI VNVIaNI O 5 x ryZ U �} 7 w F =a U a �i W wW a a > w O W w Z J w W d LU O Y r al w Q 0 z 9 C7 w LU 0 z rya 0 w .a L w Q Z J Y Z LL w 1S SVSNVN 0 J 07 0 0 z D O LU U) J W LU 1S SVIJnOa S GA -le Va3Alnd3S S LL c 5 a� c U O (u U Ln O E E 0 IEd (U° o 0 c o z 0 r m 0 E eo 0 0 0 0 0 as o Z r E � A m o o E a r W m E E S T T T T T N l0 O m a s a co v W a LL LL LL 1.111.11 E E � 00 E c E o z o o 0 o a o o A W rn C W 00 N {TO {TO � v v N N N C 7 C C C F" r 3 ❑11 1111 31N30 a 1 xs aNrAHVW 1 ld 1S HM3d � H 1Stl0O OUIDW N :J AYM SYp11.rM1D > r � la yNraµ may`, �1 !S s 1S 1"M a'., 1S tl1SIA tlWOI i —. i�saM� 15 x001314 s 1l SIONIIII ai 15 N010NIHStlM 3i I A.Yh'n 1S %0l0'MISVM IS vwwa= - 18 nNy0�llq 1S N00380 K H � _ 1S tlOtlA3N 1S M31N30 AS >:31fl37~ as mom.we E E 0 IEd (U° o 0 c o z 0 r m 0 E eo 0 0 0 0 0 as o Z r E � A m o o E a r W m E E S T T T T T N l0 O m a s a co v W a LL LL LL 1.111.11 E E � 00 E c E o z o o 0 o a o o A W rn C W 00 N {TO {TO � v v N N N C 7 C C C F" r 3 ❑11 1111 31N30 a 1 xs aNrAHVW 1 b0 1 1 1dANOfl3 1S OHYONI'ffi L -L= r 15 NItlW a 14 WF1R7G'lYi o o � ld 1S HM3d � f�t :J AYM SYp11.rM1D > r � �1 !S s 1S tl1SIA tlWOI —. � 15 x001314 1S tlN3W b0 1 1 1dANOfl3 1S OHYONI'ffi L -L= r 15 NItlW a 14 WF1R7G'lYi o o � 3A 77 l a F>,yyllpl 1 � f 1S 4NI[L4M 1S tl1SIA tlWOI 1S ttY101 a ai 3i I A.Yh'n 3A 77 l r>> Division o(Joe's Sweeping, Inc. P %10 July 26, 2019 Ms. Jasmine Allen Senior Management Analyst City of El Segundo 350 Main Street El Segundo, CA 90245 RE: Street Sweeping Services Contract Extension Dear Ms. Allen: Nationwide Environmental Services (NES) is proud to be contracted with the City of El Segundo and looks forward to continuing our relationship for many more years to come. NES would like to renew the street sweeping contract for a five (5) year term beginning on October 1, 2019 based on the current terms and conditions. If you have any questions, please feel free to contact me at (562) 860-0604. Thank you for President AS/mm 11914 Front Street m Norwalk, California 90650 ■ (562) 860-0604 * Fax (562) 868-5726 www.nes-sweeping.com 52 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action to accept as complete the Fire Station #1 Chiefs' Living Quarters Improvement Project, Project No. PW 18-01 (Fiscal Impact: $67,346.90) RECOMMENDED COUNCIL ACTION: 1. Accept the work as complete; 2. Authorize the City Clerk to file a Notice of Completion with the County Recorder's office; or, 3. Alternatively, discuss and take other possible actions related to this item. ATTACHED SUPPORTING DOCUMENTS: Notice of Completion FISCAL IMPACT: Included in Adopted Budget Amount Budgeted: $79,680 Additional Appropriation: No Account Number(s): 301-400-8201-8413 (Fire Small Bathroom Remodel) STRATEGIC PLAN: Goal: 4 Develop Quality Infrastructure and Technology Objective: (a) El Segundo's physical infrastructure supports an appealing, safe, and effective City ORIGINATED BY: Cheryl Ebert, Senior Civil Engineer 0d;?— REVIEWED BY: Ken Berkman, Public Works Director APPROVED BY: Scott Mitnick, City Manager n BACKGROUND AND DISCUSSION: On February 19, 2019, City Council awarded a Public Works Contract to Corral Construction for the Fire Station #1 Chiefs' Living Quarters Improvement Project in the amount of $66,400 and authorized an additional $13,280 for construction related contingencies. Construction began on May 13, 2019, and was completed by Corral Construction on June 26, 2019. The project consisted of modifying and improving three bedrooms and two bathrooms. One of the bathrooms was converted to an office for new staff by closing off one of the doors to the Jack -and - Jill bathroom. All of the bedrooms/office received new carpeting. 5 53 Accounting Summary: $66,400.00 Construction Contract Amount +$946.90 Change Order $67,346.90 Total Funds Spent $79,680.00 Total Budget — $67,346.90 Total Funds Spent $12,333.10 Unspent Project Funds Return to Source Staff respectfully recommends that City Council accept the work performed by Corral Construction as complete and authorize the City Clerk to file a Notice of Completion with the County Recorder's Office. 54 ON ti 56 Recording Requested by and When Recorded Mail To: City Clerk, City Hall 350 Main Street EI Segundo, CA 90245 NOTICE OF COMPLETION OF CONSTRUCTION PROJECT Project Name: Fire Station #1 Chiefs' Living Quarters Improvement Project Project No.: PW 18-01 Contract No. 5656 Notice is hereby given pursuant to State of California Civil Code Section 3093 et seq that: 1 The undersigned is an officer of the owner of the interest stated below in the property hereinafter described. 2. The full name of the owner is: City of EI Segundo 3. The full address of the owner is: City Hall, 350 Main Street, EI Segundo, CA, 90245 4. The nature of the interest of the owner is: Public Facilities 5. A work of improvement on the property hereinafter described was field reviewed by the City Engineer on June 26, 2019. The work done was: modifying and improving three bedrooms and two bathrooms, including new tile work, flooring, and plumbing. 6. On August 20, 2019, City Council of the City of EI Segundo accepted the work of this contract as being complete and directed the recording of this Notice of Completion in the Office of the County Recorder. 7. The name of the Contractor for such work of improvement was: Corral Construction 8. The property on which said work of improvement was completed is in the City of EI Segundo, County of Los Angeles, State of California, and is described as follows: Improvements (remodel) of two bathrooms and three bedrooms at Fire Station #1 in the City of EI Segundo. 9. The street address of said property is: 314 Main Street, EI Segundo, CA 90245 Dated: Ken Berkman Public Works Director VERIFICATION I, the undersigned, say: I am the Director of Public Works/City Engineer of the City EI Segundo, the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury the foregoing is true and correct. Executed on . 2019 at EI Segundo, California Ken Berkman Public Works Director 57 EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: August 20, 2019 AGENDA HEADING: Consent Agenda Consideration and possible action to accept as complete the Class III Bike Route on Main St., Grand Ave., Nash St. and Utah Ave., Project No. PW 19-03. (Fiscal Impact: $69,314.00) RECOMMENDED COUNCIL ACTION: 1. Accept the work as complete; 2. Authorize the City Clerk to file a Notice of Completion with the County Recorder's Office; or, 3. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: Notice of Completion FISCAL IMPACT: Included in Adopted FY 2018-19 Budget Amount Budgeted: $192,184.00 Additional Appropriation: No Account Number(s): 301-400-8141-8219 (Class III Bike Route Improvements) 118-400-0000-8925 (TDA Article 3 Fund) STRATEGIC PLAN: Goal: 4 Develop Quality Infrastructure & Technology Objective: (a) El Segundo's physical infrastructure supports an appealing, safe, and effective City ORIGINATED BY: Orlando Rodriguez, Senior Civil Engineer Or -- REVIEWED BY: Iden Berkman, Public Works Director W APPROVED BY: Scott Mitnick, City Manager j�j f0f sm BACKGROUND AND DISCUSSION: On May 7, 2019, City Council awarded a standard Public Works Contract to Superior Pavement Markings, Inc. (Superior) for the installation of pavement markings and signs at various locations in the amount of $49,314 and authorized an additional $4,934 for construction related contingencies. Construction began on June 24, 2019, and was completed by Superior on July 8, 2019. A final inspection of the work has been performed and it was determined that the project was completed in accordance with the plans and specifications and to the satisfaction of the Public Works Department. 58 Transportation Development Act (TDA) Article 3 Funds in the amount of $20,000 were spent during the design phase of the project and the remaining $21,998 were spent during construction. TDA Article 3 funds are allocated annually by Metro to eligible cities for design and construction of pedestrian and bicycle facilities and can be reserved for a total of three years until they are required to be spent. Public Works staff has been reserving these funds on a yearly basis until this fiscal year (year three of eligibility). Staff respectfully recommends that City Council accept the work performed by Superior Pavement Markings, Inc. as complete and authorize the City Clerk to file a Notice of Completion with the County Recorder's Office. Accounting Summary: $20,000.00 Project Design Expenditure +$49,314.00 Construction Contract Amount $69,314.00 Total Funds Spent $192,184.00 Total Budget — $69,314.00 Total Funds Spent $122,870.00 Unspent Project Funds Return to Source 59 Recording Requested by and When Recorded Mail To: City Clerk, City Hall 350 Main Street EI Segundo, CA 90245 NOTICE OF COMPLETION OF CONSTRUCTION PROJECT Project Name: Class III Bike Route Project Project No.: PW 19-03 Contract No. 5702 Notice is hereby given pursuant to State of California Civil Code Section 3093 et seq that: 1. The undersigned is an officer of the owner of the interest stated below in the property hereinafter described. 2. The full name of the owner is: City of EI Segundo 3. The full address of the owner is: City Hall, 350 Main Street, EI Segundo, CA, 90245 4. The nature of the interest of the owner is: Public Facilities 5 A work of improvement on the property hereinafter described was field reviewed by the City Engineer on July 8, 2019. The work done was: pavement markings and signs. 6. On August 20, 2019, City Council of the City of EI Segundo accepted the work of this contract as being complete and directed the recording of this Notice of Completion in the Office of the County Recorder. 7. The name of the Contractor for such work of improvement was: Superior Pavement Markings, Inc. 8. The property on which said work of improvement was completed is in the City of EI Segundo, County of Los Angeles, State of California, and is described as follows: Installation of pavement markings and signs in the City of EI Segundo. 9. The street address of said property is: Various locations, EI Segundo, CA 90245 Dated: Ken Berkman Public Works Director VERIFICATION I, the undersigned, say: I am the Director of Public Works/City Engineer of the City EI Segundo, the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury the foregoing is true and correct. Executed on _, 2019 at EI Segundo, California. Ken Berkman Public Works Director .1, EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA STATEMENT AGENDA HEADING: Consent Agenda AGENDA DESCRIPTION: Consideration and possible action regarding the adoption of Ordinance No. 1587 for Environmental Assessment No. EA -1201 to approve a change to the site's zoning designation and zoning map from Commercial Center to Urban Mixed -Use South and to approve a 10 - year Development Agreement. The project site is located at 2021 Rosecrans Avenue, El Segundo, California 90245. Applicant and Property Owner: Rosecrans -Sepulveda Partners 4, LLC RECOMMENDED COUNCIL ACTION: Waive the second reading and adopt Ordinance No. 1587 to change the zone and zoning map (No. ZC 17-01) and approve a Development Agreement (No. DA 17-02); and/or 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: N/A STRATEGIC PLAN: Goal: N/A Objective: N/A ATTACHED SUPPORTING DOCUMENTS: 1. Exhibit C — City Council Ordinance No. 1587 a. Exhibit C-1 —Development Agreement b. Exhibit C-2 — Zoning Map Amendment ORIGINATED BY: Ethan Edwards, AICP, Contract Planner and Gre McClain, Planning Manager REVIEWED BY: Sam Lee, Director of Planning an u' ding Safe APPROVED BY: Scott Mitnick, City Manager BACKGROUND AND DISCUSSION On August 6, 2019, the City Council adopted Resolution No.5159 certifying the Environmental Impact Report (Environmental Assessment No. EA -1201) for the Beach Cities Media Campus Project, making Findings of Fact and adopting a Statement of Overriding Considerations and adopting a Mitigation Monitoring and Reporting Program (MMRP); and adopted Resolution No. 5160 approving the General Plan Amendment (No. GPA 17-01 ). The City Council also introduced an Ordinance for Zone Change and Zone Map Change No. ZC 17-01, and Development Agreement No. DA 5751. The Council may waive second reading and adopt the Ordinance. If adopted, Ordinance No. 1587 will become effective in 30 days. 61 EXHIBIT C ORDINANCE NO. 1587 AN ORDINANCE APPROVING ZONE CHANGE AND ZONING MAP AMENDMENT NO. ZC 17-01 AND DEVELOPMENT AGREEMENT NO. DA 5751 FOR THE BEACH CITIES MEDIA CAMPUS PROJECT AT 2021 ROSECRANS AVENUE. The City Council of the City of EI Segundo does ordain as follows: SECTION 1: Recitals A. On September 15, 2017, Rosecrans -Sepulveda Partners 4, LLC ("RSP4"), filed an application for Environmental Assessment No. EA - 1201 for a General Plan Amendment and General Plan Map Amendment, Zone Change and Development Agreement to develop office, retail, and studio and production facilities on an approximately 6.39 -acre site located at 2021 Rosecrans Avenue (the "Property"); B. The applications were reviewed by the City of EI Segundo Planning and Building Safety Department for, in part, consistency with the General Plan and conformity with the EI Segundo Municipal Code ("ESMC"); C. The City analyzed the project's potential environmental impacts in accordance with the California Environmental Quality Act (Public Resources Code§§ 21000, et seq., ("CEQA") and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the "CEQA Guidelines")) and an environmental impact report ("EIR") was prepared; D. The Planning and Building Safety Department completed its review and scheduled a public hearing regarding the application before the Planning Commission for May 23, 2019. On May 23, 2019, the Planning Commission conducted a public hearing on the proposed project. Following the public hearing the Planning Commission adopted Resolution No. 2861 recommending that the City Council certify the Project's EIR, adopt the General Plan Amendment and General Plan Map Amendment, adopt the Zone Change and Zoning Map Amendment, and approve the draft Development Agreement; E. On July 16, 2019, the City Council scheduled a duly advertised public hearing, which was continued to August 6, 2019. On August 6, 2019, the City Council held a duly advertised public hearing in the Council Chamber of the EI Segundo City Hall, 350 Main Street to receive RVA public testimony and other evidence regarding the applications including, without limitation, information provided to the Council by City Staff, members of the public, and representatives of RSP4. SECTION 2: Environmental Assessment. On August 6, 2019, the City Council adopted Resolution No. 5159 certifying a Final Environmental Impact Report (FEIR) and a Statement of Overriding Considerations (SOC) for this Project which, among other things, properly assesses the environmental impact of this Ordinance, and the Project, in accordance with CEQA. The findings of fact and statement of overriding considerations set forth in Resolution No. 5159. SECTION 3: Exhibits. There are two exhibits attached to this Ordinance: Exhibit C-1 (Development Agreement) and Exhibit C-2 (Zoning Map Amendment.) These exhibits are attached and incorporated herein by this reference. SECTION 4: Zone Change/Zoning Map Amendment Findings. The City Council finds as follows: A. The proposed zone change and zoning map amendment will not be detrimental to the public health, safety or general welfare. MU -S zoning is compatible with the surrounding properties and uses, including the project to the east. B. ESMC Title 15 implements the goals, objectives and policies of the EI Segundo General Plan. By way of Resolution No. 5160, the City Council amended the General Plan land use designation of the Property from Commercial Center to Urban Mixed Use South. The zone change proposed by this ordinance will maintain consistency between the General Plan, as amended, and the Zoning Map. C. The City Council finds that the Zoning Map amendment is consistent with General Plan, as amended. There is no specific plan applicable to the Property. SECTION 5: Development Agreement Findings. Pursuant to City Council Resolution No. 3268, adopted June 26, 1984, the City Council finds that: A. The project is consistent with the objectives, policies, general land uses, and programs specified in the general plan. There is no applicable specific plan for this project. Considering all of its aspects, the provisions of the Development Agreement will further the goals, objectives and policies of the General Plan and not obstruct their attainment. The Development Agreement would provide the following public benefits in exchange for vested development rights: K 63 1. Fulfilling long-term economic and social goals for City and the community; 2. Providing fiscal benefits to City's general fund in terms of increased employment and utility, business license, property and other tax revenues, which are anticipated to exceed $390,000 annually; 3. Providing both short-term construction employment and long- term permanent employment within City; 4. Eliminating blighted areas; 5. Facilitating environmental remediation on and around the Property; 6. Creating significant offsite public improvements, including streets, signals, medians and landscaping; 7. Property owner voluntarily waiving its right to develop the Property with certain uses which are allowed or conditionally allowed in the MU -S zone. B. The Project is compatible regulations prescribed for, property is located. with the uses authorized in, and the the land use district in which the real The proposed uses are compatible with those allowed in the MU -S district. The Development Agreement further limits the FAR to 1.13, the floor area to 313,000 square feet and the height to 140 feet, which are less intensive than the development standards in the MU- S zone. C. The project conforms to public convenience, general welfare and good land use practice. The Project includes a range of uses that will contribute to short and long-term job creation while balancing growth with infrastructure capacity. D. The project will not be detrimental to health, safety and general welfare. An EIR was completed to evaluate the project. The following subject areas were screened out and the Initial Study evaluation was deemed to be sufficient: Aesthetics, Agricultural and Forest 64 Resources, Biological Resources, Cultural Resources, and Mineral Resources. All feasible project design features and/or mitigation measures have been incorporated into the project to reduce impacts to a level of less than significant, with the exception of Population, Housing, and Employment, and Transportation, Traffic and Parking impacts. A Statement of Overriding Considerations will be adopted for all significant and unavoidable impacts. None of the significant, unavoidable impacts associated with the project would be detrimental to the public health, safety or general welfare. E. An errata to the Final EIR was prepared in response to two late comment letters: one received on June 21 and one received on July 12, 2019. The errata concluded that the letters contained no evidence requiring recirculation of the EIR nor further environmental review or action by the City. The errata document is included in the Final EIR; F. The project will not adversely affect the orderly development of property or the preservation of property values. The Project site is surrounded by land already developed with commercial uses to the south, east and west, therefore the project's proposed production studio, office and retail uses are consistent with the adjacent development and will not adversely affect the neighboring properties. The development standards prescribed in the MU -S zone and project development agreement will result in the orderly development of the project. All mitigation measures will be implemented at the time and place impacts occur. SECTION 6: Actions. The City Council takes the following actions - A. The zoning designation of the Property is amended from "Commercial Center" to "Mixed Use South." B. The City's Zoning Map is amended to change the zoning designation of the Property from "Commercial Center" to "Mixed Use South." The corresponding changes to the Zoning Map are set forth in attached Exhibit "C-2," which is incorporated into this Ordinance by reference. C. The Development Agreement by and between the City of EI Segundo and Rosecrans -Sepulveda Partners 4, LLC, as set forth in attached Exhibit "C-1," and incorporated into this Ordinance by reference, is approved. The Mayor is authorized to execute the Development Agreement in a form acceptable to the City Attorney. 4 65 D. The City Council approves Zone Change and Zoning Map Amendment No. ZC 17-01 and Development Agreement No. DA 5751. SECTION 7: Technical Corrections. The City Manager, or designee, is authorized to make technical corrections, in a form approved by the City Attorney, to maps, diagrams, tables, and other, similar, documents (collectively, "Maps") that may be required to reconcile the changes made by this Ordinance with amendments made to the Zoning Map by other City Council action in unrelated land use applications. SECTION 8. Reliance on Record. Each and every one of the findings and determinations in this Ordinance are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole. SECTION 9: Limitations. The City Council's analysis and evaluation of the Project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council's knowledge of future events. In all instances, best efforts have been made to form accurate assumptions. Somewhat related to this are the limitations on the City's ability to solve what are in effect regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework. SECTION 10: Summaries of Information. All summaries of information in the findings which precede this section, are based on the substantial evidence in the record. The absence of any particular fact from any such summary is not an indication that a particular finding, is not based in part on that fact. SECTION 11: Effectiveness of ESMC. Repeal or amendment of any provision of the ESMC will 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 12: Recordation. 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. 4 RD SECTION 13: Effective Date. This Ordinance will become effective 30 days from the date of final passage. PASSED, APPROVED AND ADOPTED this 6th day of August, 2019. Drew Boyles, Mayor ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Sherrill Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 1587 was duly introduced by said City Council at a regular meeting held on the 6th day of August 2019, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 20th day of August, 2019, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy S. Weaver, City Clerk By: APPROVED AS TO FORM: Mark D. Hensley, City Attorney Gregg Kovacevich, Assistant City Attorney PAPlanning & Building Safety\0 Planning - Old\PROJECTS (Planning)\901-925\EA-905\Planning Commission\EA-905 Draft CC Ordinance.docx :l RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY CLERK CITY OF EL SEGUNDO 350 Main Street El Segundo, California 90245 EXEMPT FROM RECORDER'S FEES Pursuant to Government Code § 6103 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF EL SEGUNDO AND ROSECRANS-SEPULVEDA PARTNERS 4, LLC (FORMER AIR PRODUCTS SITE) THIS AGREEMENT SHALL BE RECORDED WITHIN TEN DAYS OF EXECUTION BY ALL PARTIES HERETO PURSUANT TO THE REQUIREMENTS OF GOVERNMENT CODE §65868.5 m TABLE OF CONTENTS 1. Definitions..........................................................................................................................................1 2. Recitals...............................................................................................................................................4 3. Binding Effect....................................................................................................................................5 3.1 Constructive Notice and Acceptance..... . ........:....................................:..................................:........I....... 5 3.2 Rights to Assign and Transfer....................................................................................................... 5 3.3 Liabilities Upon Transfer ................... ....................,.............................................................................. .... 6 3.1 Resumption of Rights... . ......................... —.-- ...............................---•................6..................--•--...... 6 4. Development of the Property............................................................................................................. 6 4.1 Permitted Uses, Design and Development Standards and Dedication of Land for Public Purposes ...... 6 4.2 Entitlement to Develop .. ..................................................................................... 6 4.3 Additional Restrictions......................................................... ........................................ ....................... 6 4.4 Reserved ........................................... ..................................................................... ................. . .,..........7 4.5 Building Regulations................................................................................................................................. 7 4.6 Subsequent Rules ................................................... ................................................... ............................ 7 4.7 Fees, Exactions, Mitigation Measures, Conditions, Reservations and Dedications .................................. 7 4.8 Use of Easements.................................................... ...... ....................... ...... ............................. 7 4.9 Timing of Development.................................................................................................... ............... 8 4.10 Moratorium ................................... ............................. ........ ................................................................ 8 4.11 Term..........................................................•........................................................................................ 8 4.12 Term of Map(s) and Other Project Approvals.... ...... ................ .................... ...::..:................................ .. 9 4.13 Future Approvals.............................................................................................................................--9 4.13.1 Minor Modifications to Project...................................................................................................................9 4.13.2 Modifications Requiring Amendment to this Agreement-- ...... ............. .......................... ........... 9 4.14 Site Plan Review ........................... ...... ............................................................................................... . 10 4.15 Issuance of Building Permits..................................................................................................... 10 5. Developer Agreements..................................................................................................................... 11 5.1 General.........................................................----........, .......................... ............... ,...... ............... ...... 11 5.2 Development Fees............................................................................................................................... 11 5.3 Maintenance Obligations ....................................... .............................................................. 11 5.4 Sales and Use Tax... .... .... — ........................ .................................... v ...................................................... 11 6. City Agreements.............................................................................................................................. 12 6.1 Expedited Processing.. ...................................................................................................................... 12 ii 6.2 Processing Cooperation and Assistance ............ ~......... _............ ................. ................ ~.'.... ~.._..l2 6i3 Processing During Third Party Litigation ----------._.-----^..^...^~^~-~'_..'^-^__~.'.~.l2 6'4 Performance ofDirector Duties .................. ^°..,.................................................................................... l3 7. ..................... .............. ............................................................................. l3 0. Demonstration of Good Faith Compliance ......................................................... ...................... ~..l3 0.1 Review of Compliance ...................... --.~-'~'..',--'-'-~~~~'~....................................... ... ~........... 13 82 Good Faith Compliance---------------.----.. -.--'-.-^^.l3 8.3 City Report - Information bobe Provided to Developer .......................... ~.......... _,-........ .................... l3 8'4Developer's Report ................................................. -........... ... ....... -.-........... ~~^.......................... 14 8.5 Notice of Cure Rights..--------.--.--.—.----''---------' 14 8/6 Public Notice of Findings ----------'_''''-------''--'-'-'--''-_---.l4 87 Failure of Periodic Review_ ..................................................... .............................................................. l4 9. Excusable Delays -....,...-..-_-.-...._---.-.-..^..^.....-..-~.~....~~`^~~^........-_--l4 lO. Default .--_-.-~...-...-..--.'^.-------.---_.-.^~^.^^^..^^...^._~---_-l4 10.1 Default ............................................................................... ................................................. ......... ........ l4 10.2 Content ofNotice wfViolation ................ ........................ ........ .~~................................ ........ '......... 15 10.3 Remedies for Breach ................................ ......................... ~........ .--'.................................................. l5 10/4 Resolution of Disputes .... ............................. ^~-',..................................... -........................... -....... l5 10.5Attorney's Fees and Costs .............................................. ............................... -~-~'................ -.... l5 ll. Mortgagee Protection ................................................. ................ .... ............................................... l6 11.1 Mortgage Not Rendered Invalid ....... ................................................................................................... l6 11.2 Request for Notice to Mortgagee ............ ,,,~~~.--......................... ............................................... 'l� 11.3Mortgagee's Time toCure .......................................................................... ... ............. ...... ---...... l6 11.4 Core Rights ------.------.-'__.-_--------_^-~.-.,~_~-~_-..------~.-_'_- 16 11.5 Bankruptcy ..................................................... ."........................ .......... --l7 11.6 Disaffirmation ............................................................... ....... ~.^_..... -.--...................... ~............. 17 12. Estoppel Certificate ........................................................................................................................ l? 13. Administration of Agreement -....~....~-_-._....~~_.__---------..._.....—.l7 13JAppeal ofStaff Determinations ............................................ ....... ...................... ............................... l7 132 Operating Memoranda ................................ ~.,~~......... .... ............... -................................................ // 13.3 Certificate ofPerformance ....... ~._--....... 18 14. Amendment orTermination b»Mutual Consent ....................................... .................................... 10 15. ......... -................................................. ~--_---_................ ................. l8 15.1 Indemnification -.................................... iii 70 16. Cooperation in the Event of Legal Challenge....................................................................... ...19 16.1 Third Party Challenges ...................... ... ................................................... ......... ................................. 19 16.2 Third Party Challenges Related to the Applicability of City Laws.... ................................................. 19 17. Time of Essence ....................... .............. _... ............................................................... ..................... 20 18. Effective Date................................................................................................................................ 20 19. Notices .................. :.:...:.:..:....... ,........ :........................... ................................................................. 20 20. Entire Agreement........................................................................................................................... 22 21. Waiver............................................................................................................................................22 22. Supersession of Subsequent Laws of Judicial Action.. .......... ........................... . ......... I ......... 22 23. Severability.................................................................................................................................... 22 24. Relationship of the Parties............................................................................................................. 22 25. No Third -Party Beneficiaries......................................................................................................... 23 26. Recordation of Agreements and Amendments.............................................................................. 23 27. Cooperation Between City and Developer................................................................................. 23 28. Rules of Construction................................................................................................................... 23 29. Joint Preparation............................................................................................................................ 23 30. Governing Law and Venue......................................................................................................... 23 31. Counterparts........................................................ .................................................... ................. ___ 23 32. Weekend/Holiday Dates............................................................................................................... 23 33. Not a Public Dedication................................................................................................................. 23 34. Releases.........................................................................................................................................24 35. Consent............................................................................................................................................ 2 iv 71 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is made and entered into by and between the CITY OF EL SEGUNDO, a municipal corporation (referred to hereinafter as "City") and ROSECRANS-SEPULVEDA PARTNERS, 4 LLC, a Delaware limited liability company (hereinafter as "Developer") as of this 20th day of August, 2019. City and Developer are referred to hereinafter individually as "Party" and collectively as "Parties". In consideration of the mutual covenants and agreements contained in this Agreement, City and Developer agree as follows: 1. Deflnitioiis. 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 Agreement. Words and phrases not defined in this Section will have the meaning set forth in this Agreement, the El Segundo Municipal Code, or in common usage. "Applicable Rules" means: The El Segundo General Plan, as it existed on the Approval Date, as modified by the Project Approvals; The El Segundo Municipal Code, as it existed on the Approval Date, as modified by the Project Approvals; Such other laws, ordinances, rules, regulations, and official policies governing permitted uses of the property, density, design, improvement, development fees, and construction standards and specifications applicable to the development of the Property in force at the time of the Effective Date, which are not in conflict with this Agreement. "Approval Date" means August 20, 2019, the date on which the last of the Project Approval applications was approved by the City. "Approved Plans" means a plan for any aspect of the Project, including, without limitation, the Site Plan, signage plans, and landscaping and irrigation plans, which are approved by the City in accordance with the Applicable Rules, and Project Approvals. "Beach Cities Media Campus" or "Media Campus" means development of the Property with a development of a mixture of creative office, retail/caf6, and studio and production facilities that would consist of a maximum of: 240,000 square feet of creative office with the option to incorporate a roof deck; 66,000 square feet of studio and production facilities building; 7,000 square feet of retaiUcaf6 uses for a total of 313,000 square feet of floor area with an associated FAR of 1.13 to 1; and the provision of parking spaces in a combination of surface parking, underground parking, and a parking structure all as shown in the Conceptual Site Plan attached hereto as Exhibit B. "Building Regulations" means those regulations set forth in Title 13 of the SSMC. "CEQA" means the California Environmental Quality Act, Public Resources Code § 21000 72 et seq. "CEQA Guidelines" means the regulations implementing CEQA which have been adopted by the State and found at Title 14 of the California Code of Regulations, § 150000 et seq. "City Council" means the City Council of the City of El Segundo. "Developer" means Rosecrans Sepulveda Partners 4 LLC and its transferees, assigns and successors in interest. "Development Constraints" means all of the following: • No building shall exceed 140 feet in height; • Parking shall be in an amount which meets the El Segundo Municipal Code and may be located in a combination of surface parking, underground parking, and a parking structure; and Access shall be taken from two driveways along Rosecrans Boulevard and one driveway accessing the Property off of Nash Street, consistent with the Site Plans for the Media Campus. "Development Standards" means the Site Development Standards set forth in the ESMC for the Urban Mixed -Use South zone, as well as those provisions of the ESMC relating to such things as landscaping, off-street parking and loading spaces, and signs. The Development Standards are part of the Applicable Rules. "Director" means the Director of Planning and Building Safety, or his designee. "Effective Date" means the date on which the Enabling Ordinance becomes effective in accordance with Government Code § 36937. "SSMC" means the El Segundo Municipal Code. "Enabling Ordinance" means Ordinance No. 1587, approving this Development Agreement. "Future Approvals" means such subsequent discretionary and ministerial entitlements, including permits, which are required to develop the Project in addition to the Project Approvals, and which are applied for by the Developer and approved by the City. Once approved, a Future Approval becomes part of the Project Approvals. "Alternatives" means Alternatives 1, 2, or 3 as described below: • Alternative 1 shall consist of the following development components: (a) 25,000 square feet of retail space; (b) 100,000 square feet of general office space with the 73 option to incorporate a roof deck; and (c) 188,000 square feet of studio and production facilities, as shown in the Site Plan attached hereto as Exhibit C. Alternative 2 shall consist of the following development components: (a) 100,000 square feet of research and development; (b) 10,000 square feet of retail; and (c) 100,040 square feet of creative office space with the option to incorporate a roof deck, as shown in the Site Plan attached hereto as Exhibit D. Alternative 3 shall consist of the following development component: (a) 261,990 square feet of creative office space with the option to incorporate a roof deck, as shown in the Site Plan attached hereto as Exhibit E. "Party" means the City or the Developer. "Parties" shall mean both the City and the Developer. "Person" means a natural person or any entity. "Project" means the development of the Property for the Beach Cities Media Campus or one of the Alternatives in substantial conformance with the site plans attached hereto as Exhibits B through E, in accordance with the Project Approvals and Applicable Rules. "Project Approvals" means: • Final Environmental Impact Report (FEIR) No. EA -1201, as certified by Resolution No. 5159 on August 6, 2019; • Mitigation Monitoring Program for FEIR No. EA -1201, as adopted by Resolution No. 5159 on August 6, 2019; ■ General Plan Amendment No. 17-01, as approved by Resolution No. 5160 on August 6, 2019, including a change in the Land Use Map; ■ Zone Change No. 17-01, as approved by Ordinance No. 1587 on August 20, 2019, including a change in the Zoning Map; • This Development Agreement as approved by Ordinance No. 1587 on August 20, 2019. "Property" refers to that 6.37 acres which is described in Exhibit A, attached hereto and incorporated herein by reference. "Site Plan" refers to the conceptual development plans for the Beach Cities Media Campus and each of the three Alternatives as shown on Exhibits B through E, attached hereto and incorporated herein by reference. 74 "Subsequent Rules" means any changes to the Applicable Rules, including, without limitation, any change by means of an ordinance, initiative, resolution, policy, order or moratorium, initiated or instituted for any reason whatsoever and adopted by the City Council, the Planning Commission or any other board, agency, commission or department of the City, or any officer or employee thereof, or by the electorate, which would, absent this Agreement, otherwise apply to the Property. "Transferee" means a Person which assumes in whole or in part the rights and obligations under this Agreement with respect to all or a portion of the Property. "Zone" means the Urban Mixed -Use South (MU -S) zone. 2. Recitals. This Agreement is made with respect to the following facts and for the following purposes, each of which is acknowledged as true and correct by the Parties: 2.1 Pursuant to Government Code § 65865 et seq., the City is authorized to enter into a binding contractual agreement with any person having a legal or equitable interest in real property for the development of such property. 2.2 Developer is the owner of the Property. 2.3 Developer desires to redevelop the Property, which is a former industrial site located on Rosecrans Boulevard, with a mix of commercial uses in order to complete the Rosecrans Corridor. 2.4 By this Agreement, each Party desires to obtain the binding agreement of the other Party to develop the Property in accordance with the Project Approvals, Applicable Rules and this Agreement. In consideration thereof, the City agrees to limit the future exercise of certain of its governmental and proprietary powers to the extent specified in this Agreement. The Developer agrees to waive its rights, if any, to challenge legally the limitations on density and use imposed upon development of the Property and other restrictions and obligations set forth in this Agreement and the Project Approvals. 2.5 City and Developer have acknowledged and agreed that the consideration that is to be exchanged pursuant to this Agreement is fair, just and reasonable. 2.6 This Agreement is intended to provide flexible entitlements to develop the Media Campus or one of the three Alternatives, within the parameters set forth herein and subject to the terms and conditions hereof, to meet the changing market demands that are likely to occur throughout the Term of this Agreement. 2.7 The Project uses are consistent with the City's General Plan, as amended, (the "General Plan"). 75 2.8 Development of the Project has, and will continue to, further the comprehensive planning objectives contained within the General Plan, and will result in public benefits, including, among others, the following: 2.8.1 Fulfilling long-term economic and social goals for City and the community; 2.8.2 Providing fiscal benefits to City's general fund in terms of increased utility, business license, property and sales tax revenues, which are anticipated to exceed $390,000 annually; 2.8.3 Providing both short-term construction employment and long-term permanent employment within City; 2.8.4 Eliminating blighted areas; 2.8.5 Facilitating environmental remediation on and around the Property; 2.8.6 Giving up the right to develop the Property with certain uses which are allowed or conditionally allowed in the MU -S zone. 2.9 On May 23, 2019, the Planning Commission of the City commenced a duly noticed public hearing on the Project Approvals. At the conclusion of the hearing the Planning Commission recommended that the City Council approve the Project Approvals. 2.10 On August 6, 2019, 2019, the City Council commenced a duly noticed public hearing on the Project Approvals. Prior to approving this Agreement by the Enabling Ordinance, the City Council adopted Resolution No. 5159 approving the FEIR. 2.11 All of the Property is subject to this Agreement. 3. Binding Effect. The burdens of this Agreement are binding upon, and the benefits of the Agreement inure to the City and the Developer and each successive transferee, assign and successor in interest thereto and constitute covenants that run with the land. Any and all rights and obligations that are attributed to the Developer under this Agreement shall run with the land. 3.1 Constructive Notice and Acceptance. Every person who acquires any right, title or interest in or to any portion of the Property in which the Developer has a legal interest is, and shall be, conclusively deemed to have consented and agreed to be bound by this Agreement, whether or not any reference to this Agreement is contained in the instrument by which such person acquired such right, title or interest. 3.2 Rights to Assign and Transfer. Developer may assign or transfer its rights and obligations under this Agreement with respect to the Property, or any portion thereof, to any person at any time during the term of this Agreement without approval of the City. For purpose of this Agreement, the Transferee must be considered the "owner" of that portion of the Property which 76 is covered by such transfer. 3.3 Liabilities Upon Transfer. Upon the delegation of the duties and obligations under this Agreement and the sale, transfer or assignment of all or any portion of the Property, Developer will be released from its obligations under this Agreement with respect to the Property, or portion thereof, so transferred arising subsequent to the effective date of such transfer, if. (i) Developer has provided to the City prior or subsequent written notice of such transfer; and (ii) the Transferee has agreed in writing to be subject to all of the provisions hereof applicable to the portion of the Property so transferred by executing an Assignment and Assumption Agreement in the form of Exhibit F attached hereto and incorporated herein by reference. Upon any transfer of any portion of the Property and the express assumption of Developer's obligations under this Agreement by such Transferee, the City agrees to look solely to the Transferee for compliance by such Transferee with the provisions of this Agreement as such provisions relate to the portion of the Property acquired by such Transferee. Any such Transferee shall be entitled to the benefits of this Agreement as "Developer" hereunder and shall be subject to the obligations of this Agreement applicable to the parcel(s) transferred. A default by any Transferee shall only affect that portion of the Property owned by such Transferee and shall not cancel or diminish in any way Developer's rights hereunder with respect to any portion of the Property not owned by such Transferee. The Transferee shall be responsible for satisfying the good faith compliance requirements set forth in Section 8 below relating to the portion of the Property owned by such Transferee, and any amendment to this Agreement between the City and a Transferee shall only affect the portion of the Property owned by such Transferee. 3.4 Resumption of Rights. If Transferee defaults with respect to any provision of this Agreement, developer may, but is not obligated to, resume Transferee's obligations upon written notification to City. 4. Development of the Property. The following provisions, in addition to the Applicable Rules, shall govern the development and use of the Property. 4.1 Permitted Uses, Design and Development Standards, and Dedication of Land for Public Purposes. The permitted, administratively permitted, and conditionally permitted uses of the Property as well as the Development Standards and provisions for reservation or dedication of land for public purposes are set forth in the Project Approvals and Applicable Rules. 4.2 Entitlement to Develop. The Developer is granted the vested right to develop the Project subject to the Applicable Rules, the Project Approvals, and any Future Approvals.. 4.3 Additional Restrictions. In addition to the Applicable Rules, the Project Approvals, and this Agreement, Developer shall record a restriction against the Property prohibiting the following uses: (i) drive-through restaurants; (ii) adult businesses; (iii) catering services/flight kitchens; (iv) freight forwarding; and (v) service stations. This restriction shall survive the termination of this Agreement and the restrictions shall not be removed without the written consent of the City. 77 4.4 [Reserved] 4.5 Building Regulations. Notwithstanding Section 4.6 below, all construction on the Property shall adhere to the Building Regulations in effect at the time an application for a building permit is submitted and to any federal or state building requirements that are then in effect at such time. Additionally, nothing in this Agreement prevents the City from applying "standard specifications" for public improvements (e.g., streets, storm drainage, parking lot standards, driveway widths), as the same may be adopted or amended from time to time by the City, provided that the provisions of any such standards and specifications apply only to the extent they are in effect on a Citywide basis. 4.6 Subsequent Rules. Subsequent Rules cannot be applied by the City to any part of the Property unless the Developer gives the City written notice of its election to have such Subsequent Rule applied to the Property, in which case such Subsequent Rule is deemed to be an Applicable Rule. 4.7 Fees Exactions. Mitigation Measures Conditions Reservations and Dedications. 4.7.1 Subject to sections 4.7.2, 4.7.3, and 5.2, all fees, exactions, mitigation measures, conditions, reservations and dedications of land for public purposes that are applicable to the Project are set forth in the Applicable Rules, the Project Approvals, and this Agreement. 4.7.2 Except as otherwise provided in this Agreement, and specifically excluding fees set by entities not controlled by the City that are collected by the City, the City can only charge and impose those fees and exactions, including, without limitation, dedication and any other fee relating to development or the privilege of development, which are in effect on a City-wide basis as of the Effective Date. 4.7.3 The Developer must pay the amount of the impact fees that are in effect at the time of application for the building permit pursuant to City Council Resolution Nos. 4443 and 4687, or such subsequent resolutions as may be adopted by the City Council in accordance with applicable procedures, but shall not be required to pay any new impact fees that are not in effect at the time of Project Approvals. 4.7.4 This Section shall not be construed to limit the authority of the City to charge normal and customary application, processing, and permit fees, including legal and environmental processing costs, for land use approvals, building permits and other similar permits, for Future Approvals, which fees are designed to reimburse City's actual expenses attributable to such application, processing and permitting and are in force and effect on a City-wide basis at such time as applications for such approvals are filed with the City. 4.8 Use of Easements. Notwithstanding the provisions of the Applicable Rules, easements dedicated for vehicular and pedestrian use shall be permitted to include easements for underground drainage, water, sewer, gas, electricity, telephone, cable, and environmental 78 remediation and other utilities and facilities so long as they do not unreasonably interfere with pedestrian and/or vehicular use. 4.9 Timing of Development. In Pardee Construction Co. v. City of Camarillo (Pardee), 37 Ca1.3d 465 (1984), the California Supreme Court held that the failure of the parties therein to provide for the timing or rate of development resulted in a later -adopted initiative restricting the rate of development to prevail against the parties' agreement. City and Developer intend to avoid the result in Pardee by acknowledging and providing that Developer shall have the right, without obligation, to develop the Property in such order and at such rate and times as Developer deems appropriate within the exercise of its subjective business judgment subject to the terms of this Agreement. In furtherance of the Parties' intent, as set forth in this Section, no future amendment of any existing City ordinance or resolution, or future adoption of any ordinance, resolution or other action, that purports to limit the rate or timing of development over time or alter the sequencing of development phases, whether adopted or imposed by the City Council or through the initiative or referendum process, shall apply to the Property. However, nothing in this Section shall be construed to limit City's right to enforce Developer's obligation pursuant to this Agreement to provide all infrastructure required by the Project Approvals and this Agreement. 4.10 Moratorium. 4.10.1 The City shall not impose a moratorium on the Property unless such is necessary to protect a significant threat to the health, safety and welfare of the City. 4.10.2 Except as provided in Section 4. 10.1 above, no City -imposed moratorium or other limitation (whether relating to the rate, timing or sequencing of the development or construction of all or any part of the Property, whether imposed by ordinance, initiative, resolution, policy, order or otherwise, and whether enacted by the City Council, an agency of the City, the electorate or otherwise) affecting parcel or subdivision maps (whether tentative, vesting tentative, or final), building permits, occupancy certificates, or other entitlements to use or service (including, without limitation, water and sewer), approved, issued or granted within the City, or portions of the City, applies to the Property to the extent such moratorium or other limitation is in conflict with this Agreement. However, the provisions of this Section do not affect the City's compliance with moratoria or other limitations mandated by other governmental agencies or court -imposed moratoria or other limitations. 4.11 Term. This Agreement shall be in effect for a period of 10 years from the Effective Date of the Enabling Ordinance. However, the Developer or the City shall be entitled to, by written notice to the other Party prior to the Agreement's expiration, one (1) five (5) -year extension, provided that the requesting Party is not in material default of this Agreement at such time beyond any applicable period to cure provided for by Section 8.5 below. Before the expiration of the five (5) year extension, the Parties may mutually agree to further extensions. In the event of litigation challenging this Agreement, the Term is automatically suspended for the duration of such litigation and resumes upon final disposition of such challenge and any appeal thereof upholding the validity 79 of this Agreement. In the event that a referendum petition concerning this Agreement is duly fled in such a manner that the ordinance approving this Agreement is suspended, then the Term is deemed to commence upon City Council certification of the results of the referendum election approving this Agreement. 4.12 Term of Map(s) and Other Pr6ect Approvals. Pursuant to California Government Code Sections 66452.6(a) and 65863.9, the term of any subdivision or parcel map that has been or in the future may be processed on all or any portion of the Property and the term of each of the Project Approvals shall be extended for a period of time through the scheduled termination date of this Agreement as set forth in Section 4.11 above, including any extensions thereto. 4.13 Future Approvals. 4.13.1 Minor Modifications to Project. The Developer may make minor changes to the Project and Project Approvals ("Minor Modifications") without the need to amend this Agreement upon the administrative approval of the Director. (a) Minor Modifications include: (i) A modification to the Site Plan for the Media Campus, or the Alternatives, provided the Director determines, in his/her discretion, that the Site Plan is substantially similar to the approved Site Plans attached hereto as Exhibits B through E; the modification complies with the Development Constraints; and there is no change which would qualify as a Major Modification under section 4.13.2 below; (ii) A different mix of retail space, general or creative office space, studio and production facilities, or research and development uses provided that it meets the Development Constraints and the Director determines that no subsequent or supplemental EIR is required and any new impacts can be mitigated; and (iii) any other change that does not qualify as a Major Modification as defined below. (b) The City shall not unreasonably withhold or delay approval of any Minor Modification. The City shall have the right to impose reasonable conditions in connection with Minor Modifications, provided, however, such conditions shall not be inconsistent with the Applicable Rules, the Project Approvals or with the development of the Project as contemplated by this Agreement. (c) Minor Modification of Pro"ect Approvals A Minor Amendment approved by the City shall continue to constitute the Project Approvals as referenced herein. 4.13.2 Modifications Requiring` Amendment to this Agreement. Any proposed modification to the Project which results in any of the following shall constitute a Major Modification and shall require an amendment to this Agreement pursuant to Section 14 below: We (a) Any decrease in the required building setbacks of the MU -S Zone; (b) Any increase in the total developable square footage of the entire Property in excess of a maximum FAR of 1.13; above 140 feet; MU -S Zone; (c) Any increase in height of buildings or structures on the Property (d) Any decrease in the minimum required lot area as set forth in the (e) Any decrease in the minimum required lot frontage as set forth in the MU -S Zone; (f) Any increase to the level of significance of any traffic impact, unless a subsequent traffic report has been prepared to the reasonable satisfaction of the Director that identifies potential impacts and proposes feasible mitigation measures to mitigate such impacts and otherwise complies with CEQA; (g) Any change to the access of the Property from having two driveways on Rosecrans Boulevard and one driveway accessing the Property off of Nash Street; (h) Any decrease to the amount of parking below that required by the El Segundo Municipal Code; (i) Any change which creates a new environmental impact which cannot be mitigated to a level of insignificance; 0) Any change in use to a use which is not permitted under this Agreement, but is otherwise permitted in the MU -S Zone. 4.14 Site Plan Review. Site Plan Review approval shall be required in accordance with Chapter 15-30 of the El Segundo Municipal Code. Nothing in this Agreement is intended to limit the applicability of the Site Plan Review requirement in Chapter 15-30 of the ESMC. 4.15 Issuance of Building Permits. No building permit, final inspection or Certificate of Occupancy will be unreasonably withheld, conditioned, or delayed from the Developer if all infrastructure required to serve the portion of the Property covered by the building permit, final inspection or Certificate of Occupancy is in place or is suitably guaranteed to be completed (by covenant, bond, letter of credit or otherwise) to the reasonable satisfaction of the City prior to completion of construction and all of the other relevant provisions of the Project Approvals, Future 10 81 Approvals and this Agreement have been satisfied. 5. Developer Aereements. 5.1 General. The Developer shall comply with: (i) this Agreement; (ii) the Project Approvals, including without limitation all mitigation measures required by the determination made pursuant to the California Environmental Quality Act; and (iii) all Future Approvals for which it is the applicant or a successor in interest to the applicant. 5. 1.1 In the event that any of the mitigation measures or conditions required of Developer hereunder have been implemented by others, Developer shall be conclusively deemed to have satisfied such mitigation measures or conditions, consistent with CEQA. If any such mitigation measures or conditions are rejected by a governmental agency with jurisdiction, the Developer may implement reasonably equivalent substitute mitigation, consistent with CEQA, to the City's satisfaction, in lieu of the rejected mitigation measures or conditions. Such substitution shall be deemed to be a Minor Modification pursuant to Section 4.13.1 above. 5.2 Development Fees. Subject to the provisions of Section 4.7 above, Developer shall pay the development fees in effect at the time of building permit application. The Developer shall be entitled to credits against the City's traffic mitigation fees to the extent off-site traffic improvements that are required by the Project Approvals are included in any subsequent traffic fee mitigation program adopted by the City pursuant to Government Code Section 66000, et seq. Such credits shall be based upon the actual audited costs and shall only be granted to the extent such improvements are constructed in accordance with all applicable state and local laws. The Developer waives any and all rights it may have to challenge development fees that are in effect at the time of the Effective Date and the City's right to amend its current development fees. However, the Developer retains the legal right to challenge the amount of any such amended or increased development fees to the extent such are not in compliance with the requirements of Government Code Section 66000, et seq. as well as its right to receive credits against such amended or increased fees. 5.3 Maintenance Obligations. The Developer shall maintain all portions of the Property in its possession or control, and any improvements thereon, in a first class clean, neat and orderly manner. The Parties' respective maintenance obligations shall survive any termination or expiration of this Agreement. 5.4 Sales and Use Tax. 5.4.1 In the event the contract price for any work on the Project is valued at five million dollars ($5,000,000.00) or more, Developer agrees to report, on a State Board of Equalization Tax Return, any purchases of tangible personal property made in connection with the finishing of and/or installation of materials, or fixtures for the Project, when such purchases were made without sales or use tax due. Developer shall indicate the City as a registered job site location on the State Board of Equalization Tax Return. In such event, Developer shall also obtain a permit or a sub -permit from the State Board of Equalization indicating the City as the registered job site 11 82 location, in accordance with Revenue and Taxation Code § 7051.3 or State Board of Equalization Compliance Policy and Procedure Manual § 295.060. 5.4.2 Developer further agrees that if Developer retains contractors or subcontractors to perform a portion of work in the Project, and said contracts or subcontracts are valued at five million dollars ($5,000,000) or more, said contracts or subcontracts shall contain the provisions set forth in Subsection (a) above. 5.4.3 The Director of Finance of the City is authorized to relieve Developer, and Developer's contractors and subcontractors, from the requirements set forth in this Section 5.4 upon proof to the reasonable satisfaction of the Director of Finance that Developer and/or its contractors or subcontractors have made good faith efforts to obtain said permit or sub -permits, but were denied the same by the State Board of Equalization. 6. City Agreements. 6.1 Expedited Processing. The City shall process, at Developer's expense, in an expedited manner all plan checking, excavation, grading, building, encroachment and street improvement permits, Certificates of Occupancy, utility connection authorizations, and other ministerial permits or approvals necessary, convenient or appropriate for the grading, excavation, construction, development, improvement, use and occupancy of the Project in accordance with the City's accelerated plan check process under the Applicable Rules. Without limiting the foregoing, if requested by Developer, the City agrees to utilize private planners and plan checkers (upon Developer's request and at Developer's cost) and any other available means to expedite the processing of Project applications, including concurrent processing of such applications by various City departments. 6.2 Processing Cooperation and Assistance. To the extent permitted by law, the City shall reasonably cooperate with the Developer in securing any and all entitlements, authorizations, permits or approvals which may be required by any other governmental or quasi -governmental entity in connection with the development of the Project or the Property. Without limiting the foregoing, the City shall reasonably cooperate with the Developer in any dealings with federal, state and other local governmental and quasi -governmental entities concerning issues affecting the Property. The City shall keep the Developer fully informed with respect to its communications with such agencies which could impact the development of the Property. The City must not take any actions to encourage any other governmental or quasi -governmental entities from withholding any necessary approvals and any such contrary actions on the part of the City must be considered a breach of this Agreement by City. 6.3 Processing During Third Party Litigation. The filing of any third party lawsuit(s) against the City or the Developer relating to this Agreement, the Project Approvals, any Future Approvals or to other development issues affecting any portion of the Property or the Project shall not hinder, delay or stop the development, processing or construction of the Project, approval of the Future Approvals, or issuance of ministerial permits or approvals, unless the third party obtains a court order restraining the activity. The City must not stipulate to or cooperate in the issuance 12 83 of any such order. 6.4 Performance of Director Duties. The City shall ensure that a person or persons are designated at all times to carry out the duties of the Director set forth in this Agreement. Modification/Suspension. 7.1 Pursuant to Government Code Section 65 869.5, in the event that any state or federal law or regulation, enacted after the Effective Date, precludes compliance with any provision of this Agreement, such provision shall be deemed modified or suspended to the extent practicable to comply with such state or federal law or regulation, as reasonably determined necessary by City. Upon repeal of said law or regulation or the occurrence of any other event removing the effect thereof upon the Agreement, the provisions hereof shall be restored to their full original effect. 7.2 In the event any state or federal resources agency (i.e., California Department of Fish and Game, U.S. Fish and Wildlife Service, U.S. Army Corps of Engineers, Regional Water Quality Control Board/State Water Resources Control Board), in connection with its final issuance of a permit or certification for all or a portion of the Project, imposes requirements ("Permitting Requirements") that require modifications to the Project, then the parties will work together in good faith to incorporate such changes into the Project; provided, however, that if Developer appeals or challenges any such Permit Requirements, then the Parties may defer such changes until the completion of such appeal or challenge. Demonstration of Good Faith Compliance. 8.1 Review of Compliance. In accordance with Government Code Section 65865.1, this Section 8 and the Applicable Rules, once each year, on or before each anniversary of the Effective Date ("Periodic Review"), the City Planning and Building Safety Director shall review the extent of the Developer's good faith substantial compliance with the terms and provisions of this Agreement as well as the performance by the City of its obligations under this Agreement. 8.2 Good Faith Compliance. During each Periodic Review, the Developer shall demonstrate by written status report that, during the preceding twelve (12) month period, that it has been in good faith compliance with this Agreement. For purposes of this Agreement, the phrase "good faith compliance" shall mean that the Developer has demonstrated that it has acted in a commercially reasonable manner (taking into account the circumstances which then exist) and in good faith in and has substantially complied with the Developer's material obligations under this Agreement. 8.3 City Re ort - Information to be Provided to Developer. At least 14 days before the annul anniversary of the Effective Date, the City must deliver to the Developer a copy of all staff reports prepared in connection with a Periodic Review, any prior staff reports generated during the review period, written comments from the public, and, to the extent practical, all related exhibits concerning such Periodic Review. This information shall be known as the "City Report." 13 84 8.4 Developer's Report. No later than the annual anniversary of the Effective Date, Developer must submit a written status report to the Director addressing the good faith compliance issue and any issues raised by the City Report provided to the Developer in accordance with section 8.3 above. 8.5 Notice of Non -Compliance; Cure Rights. If, after reviewing the Developer's Report, the Director reasonably concludes on the basis of substantial evidence that as to any parcel or parcels comprising the Property, Developer has not demonstrated that it is in good faith compliance with this Agreement, the Director may issue and deliver to the Developer a written Notice of Violation as set forth in Section 10 below. 8.6 Public Notice of Findin . Any appeal of the Director's determination (including any appeal by the Developer) must be filed within twenty (20) days following such decision. Filing such an appeal tolls the cure period specified in the Notice of Violation. Notwithstanding Section 13. 1, an appeal regarding the Notice of Violation shall be heard directly by the City Council at a duly -noticed public hearing and the City Council must issue a final decision. Developer retains the right to challenge the City's issuance of any final decision pursuant to Code of Civil Procedure § 1094.5 without complying with the procedures set forth in Section 10.4 below. 8.7 Failure.. of Periodic Review. The City's failure to review, at least annually, compliance by the Developer with the terms and conditions of this Agreement shall not constitute or be asserted by any Party as a breach by any other Party of this Agreement. If the City fails to provide the City Report by the Effective Date, Developer will be deemed to be in good faith compliance with this Agreement. 9. Excusable Delays. Performance by any Party of its obligations hereunder shall be excused during any period of "Excusable Delay," as hereinafter defined, provided that the Party claiming the delay gives notice of the delay to the other Party as soon as reasonably possible after the same has been ascertained. For purposes hereof, Excusable Delay shall mean delay that directly affects, and is beyond the reasonable control of, the Party claiming the delay, including without limitation: (i) act of God; (ii) civil commotion: (iii) riot: (iv) strike, picketing or other labor dispute; (v) shortage of materials or supplies; (vi) damage to work in progress by reason of fire, flood, earthquake or other casualty; (vii) reasonably unforeseeable delay caused by a reasonably unforeseeable restriction imposed or mandated by a governmental entity other than City; (viii) litigation brought by a third party attacking the validity of this Agreement, a Project Approval, a Future Approval or any other action necessary for development of the Property; (ix) delays caused by any default by City or the Developer hereunder; or (x) delays due to the presence or remediation of hazardous materials. The term of this Agreement, including any extensions, shall be extended by any period of Excusable Delay. 10. Default Provisions. 10.1 Default. Either Party to this Agreement shall be deemed to have breached this Agreement if it materially breaches any of the provisions of this Agreement and the same is not cured within the time set forth in a written notice of violation (the "Notice of Violation") from the 14 85 non -breaching Party to the breaching Party, which period of time shall not be less than ten (10) days for monetary defaults, and not less than sixty (60) days for non -monetary defaults from the date that the notice is deemed received, provided if the breaching Party cannot reasonably cure a non -monetary default within the time set forth in the notice, then the breaching Party shall not be in default if it commences to cure the default within such time limit and diligently effects such cure thereafter. If the City determines that a default may have occurred, the City shall give written notice to the Developer of its intention to terminate this Agreement and comply with the notice and public hearing requirements of Government Code Sections 65867 and 65868. At the time and place set for the hearing on termination, the Developer shall be given an opportunity to be heard. If the City Council finds based upon the evidence that the Developer is in breach of this Agreement, the City Council may modify or terminate this Agreement. If Developer initiates a resolution of dispute in accordance with the provisions of Section 10.4 below within 60 days following the City Council's determination that Developer is in breach of this Agreement, the City Council's decision to modify or terminate this Agreement is stayed until the issue has been resolved through informal procedures, mediation, or court proceedings. 10.2 Content of Notice of Violation. Every Notice of Violation shall state with specificity that it is given pursuant to this Section of the Agreement, the nature of the alleged breach, (including references to the pertinent provisions of this Agreement), the portion of the Property involved, and the manner in which the breach may be satisfactorily cured. The notice shall be deemed given in accordance with Section 19 hereof. 10.3 Remedies for Breach. The Parties agree that the remedies for breach of this Agreement shall be limited to the remedies expressly set forth in this section. Developer's remedies for any breach of this Agreement by City shall be limited to injunctive relief and/or specific performance. 10.4 Resolution of Disputes. The City and the Developer agree to attempt to settle any claim, dispute or controversy arising from this Agreement through consultation and negotiation in good faith and in spirit of mutual cooperation. If those attempts fail, the dispute may be mediated by a mediator chosen jointly by the City and the Developer within 30 days after notice by one of the parties demanding non-binding mediation. Neither Party may unreasonably withhold consent to the selection of a mediator. The City and the Developer will share the cost of the mediation equally. The Parties may agree to engage in some other form of non-binding alternate dispute resolution ("ADR") procedure in lieu of mediation. Any dispute that cannot be resolved between the Parties through negotiation or mediation within two months after the date of the initial demand for non-binding mediation may then be submitted to a court of competent jurisdiction in the County of Los Angeles, California. 10.5 Attorney's Fees and Casts. Each Party to this Agreement agrees to waive any entitlement of attorney's fees and costs incurred with respect to any dispute arising from this Agreement. The parties will each bear their own attorney's fees and costs in the event of any dispute. 11. Mortgagee Protection. This Agreement shall not prevent or limit the Developer, in any 15 W. manner, at Developer's sole discretion, from encumbering the Property or any portion thereof or any improvements thereon by any mortgage, deed of trust or other security device. The City acknowledges that the lender(s) providing such financing ("Mortgagee") may require certain Agreement interpretations and agrees, upon request, from time to time, to meet with the Developer and representatives of such lender(s) to provide within a reasonable time period the City's response to such requested interpretations. The City will not unreasonably withhold its consent to any such requested interpretation, provided that such interpretation is consistent with the intent and purposes of this Agreement. Any Mortgagee of a mortgage or a beneficiary of a deed of trust or any successor or assign thereof, including without limitation the purchaser at a judicial or non judicial foreclosure sale or a person or entity who obtains title by deed -in -lieu of foreclosure on the Property shall be entitled to the following rights and privileges: 11.1 Mortmage Not Rendered Invalid. Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish, or impair the priority of the lien of any mortgage or deed of trust on the Property made in good faith and for value. No Mortgagee shall have an obligation or duty under this Agreement to perform the Developer's obligations, or to guarantee such performance, prior to taking title to all or a portion of the Property. 11.2 Re nest for Notice to Mort a ee. The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, who has submitted a request in writing to the City in the manner specified herein for giving notices, shall be entitled to receive a copy of any Notice of Violation delivered to the Developer. 11.3 Mortgagee's Time to Cure. The City shall provide a copy of any Notice of Violation to the Mortgagee that has requested such copy within ten (10) days of sending the Notice of Violation to the Developer. The Mortgagee shall have the right, but not the obligation, to cure the default for period of sixty (60) days after receipt of such Notice of Violation, or such longer period of time as may be specified in the Notice. Notwithstanding the foregoing, if such default shall be a default which can only be remedied by such Mortgagee obtaining possession of the Property, or any portion thereof, and such Mortgagee seeks to obtain possession, such Mortgagee shall have until sixty (60) days after the date of obtaining such possession to cure or, if such default cannot reasonably be cured within such period, to commence to cure such default, provided that such default is cured no later than one (1) year after Mortgagee obtains such possession. 11.4 Cure Rights. Any Mortgagee who takes title to all of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or a deed in lieu of foreclosure, shall succeed to the rights and obligations of the Developer under this Agreement as to the Property or portion thereof so acquired; provided, however, in no event shall such Mortgagee be liable for any defaults or monetary obligations of the Developer arising prior to acquisition of title to the Property by such Mortgagee, except that any such Mortgagee shall not be entitled to a building permit or occupancy certificate until all delinquent and current fees and other monetary or non - monetary obligations due under this Agreement for the Property, or portion thereof acquired by such Mortgagee, have been satisfied. 11.5 Bankruptcy. If any Mortgagee is prohibited from commencing or prosecuting 16 87 foreclosure or other appropriate proceedings in the nature of foreclosure by any process or injunction issued by any court or by reason of any action by any court having jurisdiction of any bankruptcy or insolvency proceedings involving the Developer, the times specified in Section 10 above shall be extended for the period of the prohibition, except that any such extension shall not extend the term of this Agreement. 11.6 Disaffirmation. If this Agreement is terminated as to any portion of the Property by reason of (i) any default or (ii) as a result of a bankruptcy proceeding, and this Agreement is disaffirmed by a receiver, liquidator, or trustee for the Developer or its property, the City, if requested by any Mortgagee, shall negotiate in good faith with such Mortgagee for a new development agreement for the Project as to such portion of the Property with the most senior Mortgagee requesting such new agreement. This Agreement does not require any Mortgagee or the City to enter into a new development agreement pursuant to this Section. 12. Estoppel Certificate. At any time and from time to time, the Developer may deliver written notice to City and City may deliver written notice to the Developer requesting that such Party certify in writing that, to the knowledge of the certifying Party: (i) this Agreement is in full force and effect and a binding obligation of the Parties; (ii) this Agreement has not been amended, or if amended, the identity of each amendment; and (iii) the requesting Party is not in breach of this Agreement, or if in breach, a description of each such breach. The Party receiving such a request shall execute and return the certificate within thirty (30) days following receipt of the notice. The failure of the City to deliver such a written notice within such time shall constitute a conclusive presumption against the City that, except as may be represented by the Developer, this Agreement is in full force and effect without modification, and that there are no uncured defaults in the performance of the Developer. The City Planning and Building Safety Director shall be authorized to execute, on behalf of the City, any Estoppel Certificate requested by the Developer. City acknowledges that a certificate may be relied upon by successors in interest to the Developer who requested the certificate and by holders of record of deeds of trust on the portion of the Property in which that Developer has a legal interest. 13. Administration of Agreement. 13.1 Appeal of Staff Determinations. Any decision by City staff concerning the interpretation or administration of this Agreement or development of the Property in accordance herewith may be appealed by the Developer to the Planning Commission, and thereafter, if necessary, to the City Council pursuant to the El Segundo Municipal Code. The Developer shall not seek judicial review of any staff decision without first having exhausted its remedies pursuant to this Section. Final determinations by the City Council are subject to judicial review subject to the restrictions and limitations of California law. 13.2 Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between City and Developer. During the Term of this Agreement, clarifications to this Agreement and the Applicable Rules may be appropriate with respect to the details of performance of City and Developer. If and when, from time to time, during the term of this Agreement, City and Developer agree that such clarifications are necessary or appropriate, they 17 :: shall effectuate such clarification through a memoranda approved in writing by City and Developer (the "Operating Memoranda"), which, after execution, shall be attached hereto and become part of this Agreement and the same may be further clarified from time to time as necessary with future written approval by City and the Developer. Operating Memoranda are not intended to and shall not constitute an amendment to this Agreement but are mere ministerial clarifications, therefore public notices and hearings are not required. The City Attorney shall be authorized, upon consultation with, and approval of, the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment hereof which requires compliance with the provisions of Section 14 below. The authority to enter into such Operating Memoranda is hereby delegated to the Director, and the Director is hereby authorized to execute any Operating Memoranda hereunder without further City Council action. 13.3 Certificate of Performance. Upon the completion of the Project, or the completion of development of any parcel within the Project, or upon completion of performance of this Agreement or its earlier revocation and termination, the City shall provide the Developer, upon the Developer's request, with a statement ("Certificate of Performance") evidencing said completion or revocation and the release of the Developer from further obligations hereunder, except for any ongoing obligations hereunder. The Certificate of Performance shall be signed by the appropriate agents of the Developer and the City and shall be recorded in the official records of Los Angeles County, California. Such Certificate of Performance is not a notice of completion as referred to in California Civil Code § 3093. 14. Amendment or Termination by Mutual Consent. Except as otherwise set forth herein, this Agreement may only be amended or terminated, in whole or in part, by mutual consent of City and the Developer, and upon compliance with the provisions of Government Code § 65867. 15. Indemnification/Defense. 15.1 Indemnification. The Developer agrees to indemnify and hold the City harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising from the City's approval of the Project, this Agreement, Developer's performance of this Agreement, and all procedures with approving this Agreement (collectively, "Discretionary Approvals"), except to the extent such is a result of the City's sole negligence or intentional misconduct. Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the Discretionary Approvals, Developer agrees to defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise, except to the extent such action is a result of the City's sole negligence or intentional misconduct. For purposes of this Section, "the City" includes the City of EI Segundo's elected officials, appointed officials, officers, consultants, and employees. 15.2 Defense of Agreement. If the City accepts Developer's indemnification and defense as provided in Section 15.1 above, the City agrees to and shall timely take all actions 18 We which are necessary or required to uphold the validity and enforceability of this Agreement, the Discretionary Approvals, Project Approvals, Development Standards, and the Applicable Rules. This Section 15 shall survive the termination of this Agreement. 16. Cooperation in the Event of Legal Challenge 16.1 Third Party Challenges. In the event of any administrative, legal or equitable action or other proceeding instituted by any person or entity not a party to the Agreement challenging the validity of any provision of this Agreement, challenging any Approval, or challenging the sufficiency of any environmental review of either this Agreement or any Approval under CEQA (each a "Third Party Challenge"), each party must cooperate in the defense of such Third Party Challenge, in accordance with this Section. Developer agrees to pay City's costs of defending a Third Party Challenge, including all court costs and reasonable attorney's fees expended by City (including the time and cost of the City Attorney) in defense of any Third Party Challenge, as well as the time of City's staff spent in connection with such defense. Developer may select its own legal counsel to represent Developer's interests in any Third Party Challenge at Developer's sole cost and expense. City agrees that it will not enter into a settlement agreement to any Third Party Challenge without Developer's written consent. Developer's obligation to pay City's costs in the defense of a Third Party Challenge shall not extend to those costs incurred on appeal if Developer notifies the City is writing that it does not wish to pursue the appeal. 16.2 Third Party Challenges Related to the Applicability of City Laws. The provisions of this Section will apply only in the event of a legal or equitable action or other proceeding, before a court of competent jurisdiction, instituted by any person or entity not a party to the Agreement challenging the applicability to the Project or Project Site of a conflicting City Law (a "Third Party Enforcement Action"): 16.2.1 In the event of a Third Party Enforcement Action, City must: (i) promptly notify Developer of such action or proceeding; and (ii) stipulate to Developer's intervention as a party to such action or proceeding unless Developer has already been named as a respondent or real party in interest to such action or proceeding. In no event will City take any action that would frustrate, hinder, or otherwise complicate Developer's efforts to intervene, join or otherwise participate as a party to any Third Party Enforcement Action. As requested by Developer, City must use its best efforts to ensure that Developer is permitted to intervene, join or otherwise participate as a party to any Third Party Enforcement Action. If, for any reason, Developer is not permitted to intervene, join or otherwise participate as a party to any Third Party Enforcement Action, the parties to this Agreement agree to cooperate, to the maximum extent permitted by law, in the defense of such action or proceeding. For purposes of this Section, the required cooperation between the parties includes, without limitation, developing litigation strategies, preparing litigation briefs and other related documents, conferring on all aspects of the litigation, developing settlement strategies, and, to the extent permitted by law, jointly making significant decisions related to the relevant litigation, throughout the course thereof. 19 .o 16.2.2 City's costs of defending any Third Party Enforcement Action, including all court costs, and reasonable attorney's fees expended by City (including the time and cost of the City Attorney) in defense of any Third Party Enforcement Action, as well as the time of City's staff spent in connection with such defense (the "Enforcement Action Defense Costs), will be paid in accordance with this Agreement. The Enforcement Action Defense Costs shall extend to, and Developer will be obligated to pay, any costs incurred on appeal unless Developer notifies the City in writing that it does not wish to pursue the appeal. 16.2.3 City must not enter into a settlement agreement or take any other action to resolve any Third Party Enforcement Action without Developer's written consent. City cannot, without Developer's written consent, take any action that would frustrate, hinder or otherwise prevent Developer's efforts to settle or otherwise resolve any Third Party Enforcement Action. 16.2.4 Provided that City complies with this Section and provided that Developer is a party to the relevant Third Party Enforcement Action, Developer agrees to be bound by any final judgment (i.e., following all available appeals) arising out of a Third Party Enforcement Action and further agrees that no default under this Agreement will arise if such final judgment requires City to apply to the Project or Project Site a City Law that conflicts with Applicable Law or this Agreement. 17. Time of Essence. Time is of the essence for each provision of this Agreement of which time is an element. 18. Effective Date. This Agreement shall become operative on the date the Enabling Ordinance approving this Development Agreement becomes effective (the "Effective Date") pursuant to Government Code Section 36937. 19. Notices. Any notice that a party is required or may desire to give the other must be in writing and may be sent by: i) personal delivery; or ii) by deposit in the United States mail, postage paid, registered or certified mail, return receipt requested; or iii) by overnight delivery using a nationally recognized overnight courier, providing proof of delivery; or iv) by facsimile, evidenced by confirmed receipt; or v) by electronic delivery, evidenced by confirmed receipt, addressed as follows: If to City: City of El Segundo 350 Main Street El Segundo, CA 90245 Attention: City Manager Phone: 310/524-2301 Fax: 310/322-7137 E-mail: smitnick@else ung do.or With a Copy to: City of El Segundo 350 Main Street El Segundo, CA 90245 20 91 Attention: Director of Planning and Building Safety Phone: 310/524-2346 Fax: 310/322-4167 E-mail: Slee Aelsegundo.org With a Copy to: Hensley Law Group 3655 Torrance Boulevard, Suite 300 Torrance, California 90503 Attention: Mark D. Hensley, Esq. Phone: Fax: E-mail: mhensley_QhensleylawgroLxp.com If to Developer: Rosecrans -Sepulveda 4, LLC Richard L. Lundquist President Continental Development Corporation 2041 Rosecrans Avenue, Suite 200 El Segundo, CA 90245 Phone: 310/640-1520, ext. Fax: 310/414-9279 E-mail: rlundquist@continentaldevelopment.com With a Copy to: Rosecrans -Sepulveda 4, LLC Alex Rose Senior Vice President Continental Development Corporation 2041 Rosecrans Avenue, Suite 200 El Segundo, CA 90245 Phone: 310/640-1520 Fax: 310/414-9272 E-mail arose@continentaldevelopment.com With a Copy to: Allan Mackenzie c/o Mar Ventures, Inc. 721 N. Douglas Street El Segundo, CA 90245 Phone: Fax E-mail: allan.mackenzie(@marventures.com With a Copy to: Lisa Kranitz Wallin, Kress, Reisman & Kranitz, LLP 21 92 11355 Olympic Boulevard, Suite 300 Los Angeles, CA 90064 Phone: 310/450-9585 Fax: 310/450-0505 E-mail: l isaAwkrklaw.com Either City or Developer may change its mailing address at any time by giving written notice of such change to the other in the manner provided herein at least ten days prior to the date such change is affected. Any notice given by mail is deemed to have been given as of the date of delivery (whether accepted or refused) established by the United State Post Office, return receipt, or the overnight carrier's proof of delivery as the case may be. Notices given in any other manner are effective only if and when received by the party to be notified between the hours of 8:00 a.m. and 5:00 p.m., local time of the recipient, of any business day with delivery made after such hours deemed received the following business day. 20. Ditire _A;reeztient. This Agreement contains the entire agreement between the Parties regarding the subject matter hereof, and supersedes in its entirety all prior agreements or understandings, oral or written. This Agreement shall not be amended, except as expressly provided herein. 21. Waiver. No waiver of any provision of this Agreement shall constitute a waiver of any other provision, whether or not similar; nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless it is executed in writing by a duly authorized representative of the Party against whom enforcement of the waiver is sought. 22. Supersession -of Subse went Laws of Judicial Action. The provisions of this Agreement must, to the extent feasible, be modified or suspended as may be necessary to comply with any new law or decision issued by a court of competent jurisdiction, enacted or made after the effective date which prevents or precludes compliance with one or more provisions of this Agreement. Immediately after enactment of any such new law, or issuance of such decision, the parties must meet and confer in good faith to determine the feasibility of any such modification or suspension based on the effect such modification or suspension would have on the purposes and intent of this Agreement. 23. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall be effective to the extent the remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 24. Relationship of the Parties. Each Party acknowledges that, in entering into and performing under this Agreement, it is acting as an independent entity and not as an agent of any other Party in any respect. Nothing contained herein or in any document executed in connection herewith shall be construed as creating the relationship of partners, joint ventures or any other association of any king or nature between City and Developer, jointly or severally. 22 93 25. No Third-PLgy Beneficiaries. This Agreement is made and entered into for the sole benefit of the Parties and their successors in interest. No other person or party shall have any right of action based upon any provision of this Agreement. 26. Recordation of Agreement and Amendments. This Agreement and any amendment thereof shall be recorded with the County Recorder of the County of Los Angeles by the City Clerk of City. 27. Cooperation Between_City_ and Developer. City and Developer shall execute and deliver to the other all such other and further instruments and documents as may be reasonably necessary to carry out the purposes of this Agreement. Upon satisfactory performance by Developer, and subject to the continuing cooperation of the Developer, City will commence and in a timely manner proceed to complete all steps necessary for the implementation of this Agreement and development of the Project or Property in accordance with the terms of this Agreement. 28. Rules of Construction. The captions and headings of the various sections and subsections of this Agreement are for convenience of reference only, and they shall not constitute a part of this Agreement for any other purpose or affect interpretation of the Agreement. Should any provision of this Agreement be found to be in conflict with any provision of the Applicable Rules or the Project Approvals or the Future Approvals, the provisions of this Agreement shall control. 29. Joint Preparation. This Agreement shall be deemed to have been prepared jointly and equally by the Parties, and it shall not be construed against any Party on the ground that the Party prepared the Agreement or caused it to be prepared. 30. Governing Law and Venue. This Agreement is made, entered into, and executed in the County of Los Angeles, California, and the laws of the State of California shall govern its interpretation and enforcement. Any action, suit or proceeding related to, or arising from, this Agreement shall be filed in the appropriate court having jurisdiction in the County of Los Angeles. 31. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which constitute one and the same instrument. 32. Weekend/Holiday Dates. Whenever any determination is to be made or action to be taken on a date specified in this Agreement, if such date shall fall upon a Saturday, Sunday or holiday specified in Government Code § 6700, the date for such determination or action shall be extended to the first business day immediately thereafter. 33. Not a Public Dedication. Except as otherwise expressly provided herein, nothing herein contained shall be deemed to be a gift or dedication of the Property, or of the Project, or any portion thereof, to the general public, for the general public, or for any public use or purpose whatsoever, it being the intention and understanding of the Parties that this Agreement be strictly limited to and for the purposes herein expressed for the development of the Project as private property. The Developer shall have the right to prevent or prohibit the use of the Property, or the Project, or any portion thereof, including common areas and buildings and improvements located thereon, by any 23 94 person for any purpose which is not consistent with the development of the Project. Any portion of the Property conveyed to the City by the Developer as provided herein shall be held and used by the City only for the purposes contemplated herein or otherwise provided in such conveyance, and the City shall not take or permit to be taken (if within the power or authority of the City) any action or activity with respect to such portion of the Property that would deprive the Developer of the material benefits of this Agreement, or would in any manner interfere with the development of the Project as contemplated by this Agreement. 34. Releases. City agrees that upon written request of Developer and payment of all fees and performance of the requirements and conditions required by Developer by this Agreement, the City must execute and deliver to Developer appropriate release(s) of further obligations imposed by this Agreement in form and substance acceptable to the Los Angeles County Recorder's Office or as otherwise may be necessary to effect the release. 35. Consent. Where the consent or approval of City or Developer is required or necessary under this Agreement, the consent or approval will not be unreasonably withheld, delayed or conditioned. IN WITNESS WHEREOF, the Developer and the City of El Segundo have executed this Development Agreement on the date first above written. CITY: City of El Segundo, a municipal corporation By: Mayor ATTEST: Tracy Weaver City Clerk APPROVED AS TO FORM: By: Mark D. Hensley, City Attorney 24 95 DEVELOPER: ROSECRANS-SEPULVEDA PARTNERS 4, LLC, A Delaware limited liability company By: Continental Rosecrans -Sepulveda, Inc. a California corporation B4`: ............... ...... Richard L. Lundquist, President 25 ., EXHIBIT A LEGAL DESCRIPTION Real property in the City of El Segundo, County of Los Angeles, State of California, described as follows: THE SURFACE AND THAT PORTION OF THE SUBSURFACE WHICH LIES ABOVE A PLANE 450 FEET BELOW THE MEAN LOW WATER LEVEL OF THE PACIFIC OCEAN (AS SAID MEAN LOW WATER LEVEL IS ESTABLISHED BY U.S. COAST AND GEODETIC SURVEY BENCH MARKS ALONG THE SHORE LINE) OF THE FOLLOWING DESCRIBED PROPERTY SITUATED IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, TO WIT: PARCEL 2 OF PARCEL MAP NO. 2341, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON THE MAP FILED IN BOOK 32, PAGE 99 OF PARCEL MAPS, IN SAID OFFICE OF THE COUNTY RECORDER, TOGETHER WITH THAT PORTION OF PARCEL 1 OF PARCEL MAP NO. 2341, AS SHOWN ON THE MAP FILED IN BOOK 32, PAGE 99 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER, LYING WESTERLY OF THE FOLLOWING DESCRIBED LINE: BEGINNING AT THE WESTERLY CORNER OF SAID PARCEL 1; THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL, SOUTH 89° 57'34" EAST, 291.05 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 00° 02'26" EAST, 183.15 FEET TO THE NORTHWESTERLY LINE OF SAID PARCEL 1. EXCEPTING ALL OIL, GAS, ASPHALTUM AND OTHER HYDROCARBON SUBSTANCES AND OTHER MINERALS, WHETHER SIMILAR TO THOSE HEREIN SPECIFIED OR NOT, WITHIN OR THAT MAY BE PRODUCED FROM SAID LAND; PROVIDED, HOWEVER, THAT THE SURFACE OF SAID LAND SHALL NEVER BE USED FOR THE EXPLORATION, DEVELOPMENT, EXTRACTION, REMOVAL OR STORAGE OF SAID OIL, GAS, ASPHALTUM, AND OTHER HYDROCARBON SUBSTANCES AND OTHER MINERALS, AND FURTHER PROVIDED NO INSTALLATION CONSTRUCTED THEREIN SHALL BE DISTURBED IN ANY MANNER IN EXTRACTING SAID RESERVED MINERALS, AS RESERVED IN DEED FROM STANDARD OIL COMPANY OF CALIFORNIA, RECORDED DECEMBER 20, 1960, AS INSTRUMENT NO. 1622, IN BOOK D-1069, PAGE 898, OFFICIAL RECORDS. SAID LAND IS ALSO SHOWN AS PARCEL 2 OF LLA NO. 13-04 OF THAT CERTIFICATE OF COMPLIANCE LOT LINE ADJUSTMENT RECORDED DECEMBER 30, 2013 AS INSTRUMENT NO. 20131816582 OF OFFICIAL RECORDS. APN: 4138-015-064 `zi 97 EXHIBIT B STIE PLAN FOR BEACH CITIES MEDIA CAMPUS wllliliillllilll___ 1%111' 11111111111 a= 1338JS HSVN 27 .; EXHIBIT C SITE PLAN FOR ALTERNATIVE 1 133HIS HSYN 4 28 EXHIBIT D SITE PLAN FOR ALTERNATIVE 2 C�rmemmmmmm �llll!!1l1II1111l11111I c 0 W N v o C L � Q) Q in JJRUS 14SVN st Q9 _7j 100 EXHIBIT E SITE PLAN FOR ALTERNATIVE 3 30 101 EXHIBIT F ASSIGNMENT AND ASSUMPTION AGREEMENT Recording Requested By and When Recorded Mail To: Rosecrans Sepulveda Partners 4 LLC ASSIGNMENT AND ASSUMPTION AGREEMENT This ASSIGNMENT AND ASSUMPTION AGREE entered into by and among ROSECRANS-SEPULVEDA Limited Liability Corporation ("RSP4") ("Assignors"), and, ("Assignee"). RECITALS WENT ("Agreement") is made and PARTNERS 4, LLC, a Delaware ,a A. The City of El Segundo ("City") and Assignor entered into that certain Revised and Restated Development Agreement dated 220 (the "Development Agreement"), with respect to the real property located in the City of El Segundo, State of California more particularly described in Exhibit "A" attached hereto (the "Project Site"), and B. Assignor has obtained from the City certain development approvals and permits with respect to the development of the Project Site, including without limitation, approval of for the Project Site (collectively, the "Project Approvals"). C. Assignor intends to sell, and Assignee intends to purchase that portion, of the Project Site more particularly described in Exhibit `B" attached hereto (the "Transferred Property"). D. In connection with such purchase and sale, Assignor desires to transfer all of the Assignor's right, title, and interest in and to the Development Agreement and the Project Approvals with respect to the Transferred Property. Assignee desires to accept such assignment from Assignor and assume the obligations of Assignor under the Development Agreement and the Project Approvals with respect to the Transferred Property. THEREFORE, the parties agree as follows: 1. Assignment. Assignor hereby assigns and transfers to Assignee all of Assignor's right, title, and interest in and to the Development Agreement and the Project Approvals with respect to the Transferred Property. Assignee hereby accepts such assignment from Assignor. 31 102 2. Assumption. Assignee expressly assumes and agrees to keep, perform, and fulfill all the terms, conditions, covenants, and obligations required to be kept, performed, and fulfilled by Assignor under the Development Agreement and the Project Approvals with respect to the Transferred Property, including but not limited to those obligations specifically allocated to the Transferred Parcel as set forth on Exhibit "C" attached hereto. 3. Effective Date. The execution by City of the attached receipt for this Agreement shall be considered as conclusive proof of delivery of this Agreement and of the assignment and assumption contained herein. This Agreement shall be effective upon its recordation in the Official Records of Los Angeles County, California, provided that Assignee has closed the purchase and sale transaction and acquired legal title to the Transferred Property. 4. Remainder of Project. Any and all rights or obligations pertaining to such portion of the Project Site other than the Transferred Property are expressly excluded from the assignment and assumption provided in sections 1 and 2 above. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth next to their signatures below. "ASSIGNOR" Rosecrans -Sepulveda Partners 4 LLC, a Delaware limited liability company RECEIPT BY CITY The attached ASSIGNMENT AND ASSUMPTION AGREEMENT is received by the City of El Segundo on this day of , CITY OF EL SEGUNDO in Planning and Building Safety Director or Designee 32 103 GOLF COURSE UTAH AVE i ALASKA AVE Q / PV / SGH I � L / 4 r. MIXED-L15E• ' -,- Sbl1TH PROJECT AREA EXHIBIT C-2 N Beach Cities Media Campus 2021 Rosecrans Avenue City of EI Segundo Proposed Zoning Map Amendment s � nn EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: August 20, 2019 AGENDA HEADING: Consent Consideration and possible action regarding approval of 1) A Memorandum of Understanding (MOU) (Labor Agreement) between the City of El Segundo and the El Segundo Supervisory and Professional Employees' Association (SPEA); 2) Adoption of Resolution approving the Memorandum of Understanding; 3) Adoption of Resolution approving and authorizing changes to the City's medical premium to Ca1PERS for each year of the MOU: (Fiscal Impact: $16,790 for FY 2018-19, $201,480 for FY 2019-20, $305,832 for FY 2020-21, and $411,131 in FY 2021- 22) RECOMMENDED COUNCIL ACTION: 1. Approve the Labor Agreement; 2. Adopt the Resolution approving the Memorandum of Understanding; 3. Adopt Resolution approving changes to the medical premium pursuant to MOU; or, 4. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: A. MOU between the City of El Segundo and the El Segundo Supervisory and Professional Employees Association (SPEA) (final version) B. Exhibit I (A -D) Unit salary schedules C. Resolution adopting the new SPEAMOU D. Resolution adopting the contribution towards CalPERS medical premiums E. Prior MOU with PSSEA (Redline version) FISCAL IMPACT: $16,790 for FY 2018-19 Amount Budgeted: $16,790 (vacancy savings of various positions throughout the City will be used to cover the additional MOU costs for FY 2018-19) Additional Appropriation: None Account Number(s): 001-400-Various-41xx STRATEGIC PLAN: Goal: 3 Develop as a choice employer and workforce Objective: 1 El Segundo is a City employer of choice and consistently hiring for the future, with a workforce that is inspired, world-class and engaged, demonstrating increasing stability and innovation. ORIGINATED BY: David Serrano, Human Resources Direct r b REVIEWED BY: Joseph Lillio, Director of Finance All - APPROVED BY: Scott Mitnick, City Manager W// v r S V11 105 EV• BACKGROUND AND DISCUSSION: Staff and representatives of the Supervisory and Professional Employees' Association (SPEA) having met and conferred pursuant to Section 3500 et seq. of the California Government Code (MMBA), for purposes of reaching a labor agreement. Agreement was reached on Tuesday, July 23, 2019. The agreement has been ratified by SPEA. The City's approach to these negotiations was built upon foundation of fairness, balanced approach, building trust through open and honest conversations, and seeking to further develop as a choice employer and workforce. The City and SPEA worked diligently to achieve this agreement, and reached tentative agreement following several meetings. The following are highlights of changes to the MOU associated with positions represented by this bargaining unit. Salary and benefit -related items are effective the pay period beginning March 30, 2019 unless otherwise noted: 1. Term: 4 years, October 1, 2018 to September 30, 2022 2. Agreement to Binding Arbitration 3. Re -opener: the parties have agreed to re -open to discuss modification to personnel merit system, evaluation process and form, and clean-up of MOU language regarding Janus and SB 866. 4. PERS Pick-up: Members agree to pick-up an additional 1 % of PERS Payment (total of 8% pick-up). 5. Salary Adjustments: 4% effective August 31, 2019 ■ 2% effective October 1, 2019 • 2% effective October 1, 2020 • 2% effective October 1, 2021 6. Health Insurance: an increase in the City's Health benefit: • Effective approximately October 1, 2019: from $1,200 to $1,500 monthly allowance • Effective 1/1/20: from $1,500 to $1,550 monthly allowance • Effective 1/1/21: from $1,550 to $1,600 monthly allowance ■ Effective 1/1/22: from $1,600 to $1,650 monthly allowance 7. Vacation accrual: parties agree to recognize prior PERS agency service years for vacation accrual; for new hires and probationary employees, following completion of probationary period. 8. Elimination of the opt-out/cashback program 9. Computer Loan Program: members agreed to eliminate this program. Additionally, the parties agreed to re -opener clause to discuss additional items including the City's Personnel Merit system, and employee evaluation system during the term of this agreement. The MOU, as attached, contains all essential terms and conditions. This agreement and our ability to develop and foster relations with SPEA will help improve morale and help to foster employee engagement. This salary and benefit increases and adjustments will complement the City's efforts to make El Segundo an employer of choice. Staff recommends approval of the attached MOU and Resolutions. 106 PLACE HOLDER ATTACHMENT A MOU between the City of El Segundo and the El Segundo Supervisory and Professional Employees Association (SPEA) (final version) 107 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 4% effective first pay-perioid following ratification by City Council 30S CRIME PREVENTION ANALYST 1 STEP STEP A STEP B STEP C STEP D STEP E MONTHLY $6,216.96 $6,527.81 1$6,854.20 $7,196.91 $7,556.76 PARK MAINTENANCE SUPERVISOR BASE DEPUTY CITY TREASURER BASE $5,971.13 $6,269.69 $6,583.17 $6,912.33 $7,257.94 32S LIBRARIAN I STEP STEP A STEP B I STEP C STEP D STEP E MONTHLY BASE $6,216.96 $6,527.81 1$6,854.20 $7,196.91 $7,556.76 33S ADMINISTRATIVE ANALYST PROPERTY OWNER COORDINATOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY G.I.S. ANALYST BASE $7,031.67$7,383.25 PARK MAINTENANCE SUPERVISOR BASE $6,344.51 $6,661.74 $6,994.82 $7,344.56 $7,711.79 RSI DESIGN COORDINATOR RECREATION SUPERVISOR WELLNESS COORDINATOR STREET MAINTENANCE SUPERVISOR 34S CRIME PREVENTION ANALYST II STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $6,475.25 1$6,799.01 1$7,138.96 1$7,495.92 1$7,370.70 37S EQUIPMENT MAINT. SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY G.I.S. ANALYST BASE $7,031.67$7,383.25 PARK MAINTENANCE SUPERVISOR BASE $6,887.38 $7,231.75 $7,593.34 $7,973.00 $8,371.65 RSI DESIGN COORDINATOR PROJECT SPECIALIST; SR. ACCOUNTANT STREET MAINTENANCE SUPERVISOR WATER/WASTEWATER SUPERVISOR 38S CONSTRUCTION COORDINATOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY 1$7,7S2.41 G.I.S. ANALYST BASE $7,031.67$7,383.25 $8,140.04 1$8,547.04 PROGRAM COORDINATOR RSI DESIGN COORDINATOR 108 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 39S INFORMATION SYSTEMS DEVELOPER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $7,179.59 $7,538.57 $7,915.50 $8,311.27 $8,726.83 40S ACCOUNTING SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY STEP C STEP D STEP E MONTHLY BASE 1$9,293.59 $8,199.58 ECONOMIC DEV. ANALYST BASE $7,331.19 $7,697.75 1$8,082.64 1$8,486.77 $8,911.11 POLICE RECORDS SUPERVISOR SENIOR ADMINISTRATIVE ANALYST 42S ASSOCIATE ENGINEER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY STEP C STEP D STEP E MONTHLY BASE 1$9,293.59 $8,199.58 FACILITIES MAINT. SUPERVISOR BASE $7,645.86 IS8,028.1S 1$81429.56 1$8,851.04 PLAN CHECK ENGINEER PURCHASING AGENT RSI SUPERVISOR 43S INFORMATION SYSTEMS SPECIALIST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $7,809.12 $8,199.58 $8,609.56 $9,040.03 $9,492.04 44S SENIOR BUILDING INSPECTOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $7,976.47 $8,375.29 1$8,794.06 $9,233.76 1$9,695.45 MONTHLY BASE 45S ASSISTANT FIRE MARSHALL EMERGENCY MGMT. COORDINATOR PRINCIPAL ENVIRON. SPECIALIST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $8,148.00 $8,555.41 $8,983.18 $9,432.33 $9,903.95 46S SENIOR ENGINEER ASSOCIATE STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $8,323.82 $8,740.01 $9,177.01 $9,635.86 $10,117.65 4% effective first pay -period followign ratification by City Council 109 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 47S TECHNICAL SERVICES ANALYST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $8,504.03 $8,929.23 $9,375.69 $9,844.48 $10,336.70 49S FIRE MARSHAL STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $8,878.07 $9,321.98 $9,788.08 $10,277.48 $10,791.35 52S PRINCIPAL PLANNER SENIOR PLAN CHECK ENGINEER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE $9,474.94 $9,948.69 $10,446.12 $10,968.43 $11,516.85 535 ENVIRONMENTAL SAFTEY MGR. STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE 1$9,598.24 1$10,078.16 $10,582.06 $11,111.17 $11,666.72 4% effective first pay -period followign ratification by City Council 110 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION ATTACHMENT B -Exhibit I B 2% effective October 1, 2019 30S CRIME PREVENTION ANALYST I STEP STEP A STEP B STEP C STEP D STEP E MONTHLY $6,341.30 $6,658.37 .$6,991.29 $7,340.85 $7,707.89 157,907.46 PARK MAINTENANCE SUPERVISOR BASE SALARY DEPUTY CITY TREASURER BASE SALARY $6,090.55 $6,395.08 $6,714.83 $7,050.57 .$7,403.10 32S LIBRARIAN 1 STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $6,341.30 $6,658.37 .$6,991.29 $7,340.85 $7,707.89 33S ADMINISTRATIVE ANALYST PROPERTY OWNER COORDINATOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY $8,028.12 G.I.S. ANALYST BASE SALARY S7,172.30 $7,530.92 157,907.46 PARK MAINTENANCE SUPERVISOR BASE SALARY $6,471.40 $6,794.97 $7,134.72 $7,491.45 57,866.03 RECREATION SUPERVISOR WELLNESS COORDINATOR STREET MAINTENANCE SUPERVISOR 34S CRIME PREVENTION ANALYST II STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $6,604.75 $6,934.99 1$7,282.74 $7,645.83 $8,028.12 37S EQUIPMENT MAINT. SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY G.I.S. ANALYST BASE SALARY S7,172.30 $7,530.92 157,907.46 PARK MAINTENANCE SUPERVISOR BASE SALARY $7,025.13 $7,376.38 $7,745.20 $8,132.46 $8,539.09 PROJECT SPECIALIST, SR. ACCOUNTANT STREET MAINTENANCE SUPERVISOR WATER/WASTEWATER SUPERVISOR 38S CONSTRUCTION COORDINATOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY 1$8,302.84 1$8,717.98 G.I.S. ANALYST BASE SALARY S7,172.30 $7,530.92 157,907.46 PROGRAM COORDINATOR RSI DESIGN COORDINATOR 2% effective October 1, 2019 111 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 39S INFORMATION SYSTEMS DEVELOPER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY 1$7,323.18 $7,689.34 $8,073.81 $8,477.50 $8,901.37 40S ACCOUNTING SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY STEP C STEP D STEP E 1$9,479.46 $7,965.30 FACILITIES MAINT. SUPERVISOR ECONOMIC DEV. ANALYST BASE SALARY $7,477.81 $7,851.70 $8,244.29 1$8,656.50.J$9,089.33 PLAN CHECK ENGINEER POLICE RECORDS SUPERVISOR PURCHASING AGENT SENIOR ADMINISTRATIVE ANALYST RSI SUPERVISOR 42S ASSOCIATE ENGINEER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY STEP C STEP D STEP E 1$9,479.46 $7,965.30 FACILITIES MAINT. SUPERVISOR BASE SALARY $7,798.78 1 $8,188.72 $8,598.15 $9,028.06 PLAN CHECK ENGINEER PURCHASING AGENT RSI SUPERVISOR 43S INFORMATION SYSTEMS SPECIALIST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $7,965.30 $8,363.57 $8,781.75 $9,220.83 $9,681.88 44S SENIOR BUILDING INSPECTOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,136.001$8,542.80 $8,969.94 $9,418.43 1$9,889.35 MONTHLY BASE SALARY 45S ASSISTANT FIRE MARSHALL EMERGENCY MGMT. COORDINATOR PRINCIPAL ENVIRON. SPECIALIST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,310.96 $8,726.51 $9,162.84 $9,620.98 1$10,102.03 46S SENIOR ENGINEER ASSOCIATE STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,490.29 $8,914.81 $9,360.55 $9,828.58 $10,320.00 2% effective October 1, 2019 112 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 47S TECHNICAL SERVICES ANALYST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,674.11 $9,107.81 $9.563.20 $10,041.36 $10,543.43 49S FIRE MARSHAL STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $9,055.64 $9,508.42 $9,983.84 $10,483.03 $11,007.18 52S PRINCIPAL PLANNER SENIOR PLAN CHECK ENGINEER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $9,664.44 $10,147.66 $10,655.04 $11,187.80 $11,747.19 53S ENVIRONMENTAL SAFTEY MGR. STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY S9,790.211$10, $10,793.70 1$11,333.39 $11,900.06 2% effective October 1, 2019 113 CITY OF EL SEGUNDO SALRY TABLES ATTACHMENT B - Exhibit I C SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 2% effective October 1, 2020 30S CRIME PREVENTION ANALYST I STEP STEP A STEP B STEP C STEP D STEP E MONTHLY $6,468.13 $6,791.54 $7,131.11 $7,487.67 1$7,862.05 $8,468.89 PARK MAINTENANCE SUPERVISOR BASE SALARY DEPUTY CITY TREASURER BASE SALARY $6,212.36 $6,522.98 $6,849.13 $7,191.59 57,551.17 325 LIBRARIAN I STEP STEP A STEP B STEP C STEP D E STEP E MONTHLY BASE SALARY $6,468.13 $6,791.54 $7,131.11 $7,487.67 1$7,862.05 33S ADMINISTRATIVE ANALYST PROPERTY OWNER COORDINATOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY 1$8,288.68 G.I.S. ANALYST BASE SALARY $7,315.75 1$9,065.61 $8,468.89 PARK MAINTENANCE SUPERVISOR BASE SALARY $6,600.83 $6,930.87 $7,277.41 $7,641.28 $8,023.35 RECREATION SUPERVISOR WELLNESS COORDINATOR STREET MAINTENANCE SUPERVISOR 34S CRIME PREVENTION ANALYST II STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $6,736.85 1$7,073.69 1$7,427.37 1$7,798.74 1$8,288.68 37S EQUIPMENT MAINT. SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY G.I.S. ANALYST BASE SALARY $7,315.75 1$9,065.61 $8,468.89 PARK MAINTENANCE SUPERVISOR BASE SALARY $7,165.63 $7,523.91 $7,900.11 $8,295.11 $8,709.87 PROJECT SPECIALIST, SR. ACCOUNTANT STREET MAINTENANCE SUPERVISOR WATER/WASTEWATER SUPERVISOR 38S CONSTRUCTION COORDINATOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY 1$7,681.54 G.I.S. ANALYST BASE SALARY $7,315.75 1$9,065.61 $8,468.89 $8,892.34 PROGRAM COORDINATOR RSI DESIGN COORDINATOR 2% effective October 1, 2020 114 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 39S INFORMATION SYSTEMS DEVELOPER ISTEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $7,469.64 1$7,843.23 $8,235.28 $8,647.05 $9,079.40 40S ACCOUNTING SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY STEP C STEP STEP E 1$9,271.11 $8,124.61 ECONOMIC DEV. ANALYST BASE SALARY $7,627.37 $8,008.74 $8,409.17 1$8,829.63 $9,669.05 POLICE RECORDS SUPERVISOR PLAN CHECK ENGINEER SENIOR ADMINISTRATIVE ANALYST 42S ASSOCIATE ENGINEER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY STEP C STEP STEP E MONTHLY BASE SALARY $8,124.61 1$8,530.84 FACILITIES MAINT. SUPERVISOR BASE SALARY $7,954.75 1$8,352.49 1$8,779,12L$9,208.62 $9,669.05 PLAN CHECK ENGINEER PURCHASING AGENT RSI SUPERVISOR 43S INFORMATION SYSTEMS SPECIALIST STEP STEP A STEP B STEP C STEP STEP E MONTHLY BASE SALARY $8,124.61 1$8,530.84 1$8,957.38 .D $9,405.25 $9,875.51 44S SENIOR BUILDING INSPECTOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,298.72 $8,713.65 $9,149.33 1$9,606.80 $10,087.14 $8,477.18 45S ASSISTANT FIRE MARSHALL EMERGENCY MGMT. COORDINATOR PRINCIPAL ENVIRON. SPECIALIST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,477.18 $8,901.04 $9,346.10 $9,813.40 $10,304.07 46S SENIOR ENGINEER ASSOCIATE STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,660.10 $9,093.10 $9,547.76 $10,025.15 $10,526.40 2% effective October 1, 2020 115 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 47S TECHNICAL SERVICES ANALYST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,847.59 $9,289.97 $9,754.47 $10,242.19 $10,754.30 495 FIRE MARSHAL STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $9,236.75 $9,698.59 $10,183.52 $10,692.69 $11,227.33 52S PRINCIPAL PLANNER SENIOR PLAN CHECK ENGINEER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $9,857.73 $10,350.61 $10,868.15 $11,411.55 $11,982.13 53S ENVIRONMENTAL SAFTEY MGR. STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $9,986.01 1$10,485.31 $11,009.58 1$11,560.06 $12,138.06 2% effective October 1, 2020 116 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION WENT B - Exhibit I D 2% effective October 1, 2021 30S CRIME PREVENTION ANALYST I STEP STEP A I STEP B STEP C STEP D STEP E MONTHLY DEPUTY CITY TREASURER BASE SALARY 196.336.61 1$6,6S3.44 - $6,986.11 $7,335.42 $7,702.19 32S LIBRARIAN I ADMINISTRATIVE ANALYST 33S PROPERTY OWNER COORDINATOR RECREATION SUPERVISOR WELLNESS COORDINATOR 34S I CRIME PREVENTION ANALYST 11 EQUIPMENT MAINT. SUPERVISOR PARK MAINTENANCE SUPERVISOR PROJECT SPECIALIST; SR. ACCOUNTANT STREET MAINTENANCE SUPERVISOR WATER/WASTEWATER SUPERVISOR CONSTRUCTION COORDINATOR G.I.S. ANALYST PROGRAM COORDINATOR RSI DESIGN COORDINATOR 2% effective October 1, 2021 STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $6,597.49 $6,927.37 $7,273.73 $7,637.42 $8,019.29 STEP STEP A I STEP B I STEP C I STEP D 1 STEP E MONTHLY BASE SALARY $6,732.84 1$7,069.49 $7,422.96 $7,794.11 $8,183.81 STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $6,871.58 1$7,215.16 1$7,S75.92 1$7,954-72 T8.352 STEP ISTEP A ISTEP B STEP C ISTEP D ISTEP E MONTHLY BASE SALARY $7,308.94 $7,674.39 $8,058.11 $8,461.01 $8,884.06 STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $7,462.06 $7,835.17 $8,226.92 $8,638.27 $9,070.18 117 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 39S INFORMATION SYSTEMS DEVELOPER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $7,619.04 $7,999.99 $8,399.99 $8,819.99 $9,260.99 40S ACCOUNTING SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY STEP C STEP D STEP E MONTHLY BASE SALARY $8,287.10 $8,701.46 ECONOMIC DEV. ANALYST BASE SALARY $7,779.92 $8,168.91 $8,577.36 $9,006.23 $9,456.54 POLICE RECORDS SUPERVISOR SENIOR ADMINISTRATIVE ANALYST 42S ASSOCIATE ENGINEER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY STEP C STEP D STEP E MONTHLY BASE SALARY $8,287.10 $8,701.46 FACILITIES MAINT. SUPERVISOR BASE SALARY $8,113.85 $8,519.54 1$8,945.52T$9,39,2.80 $9,862.43 PLAN CHECK ENGINEER PURCHASING AGENT RSI SUPERVISOR 43S INFORMATION SYSTEMS SPECIALIST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,287.10 $8,701.46 $9,136.53 $9,593.36 $10,073.02 44S SENIOR BUILDING INSPECTOR STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,464.69 1$8,887.93 $9,332.32 $9,798.94 $10,288.88 $8,646.73 45S ASSISTANT FIRE MARSHALL EMERGENCY MGMT. COORDINATOR PRINCIPAL ENVIRON. SPECIALIST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,646.73 $9,079.06 $9,533.02 1$10,009.67 $10,510.15 46S SENIOR ENGINEER ASSOCIATE STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $8,833.30 $9,274.97 $9,738.71 $10,225.65 $10,736.93 2% effective October 1, 2021 118 CITY OF EL SEGUNDO SALRY TABLES SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION 47S TECHNICAL SERVICES ANALYST STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $9,024.54 $9,475.77 $9,949.56 $10,447.04 $10,969.39 49S FIRE MARSHAL STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $9,421.48 $9,892.56 $10,387.19 $10,906.54 $11,451.87 52S PRINCIPAL PLANNER SENIOR PLAN CHECK ENGINEER STEP STEP A STEP B STEP C STEP D STEP E MONTHLY BASE SALARY $10,054.88 $10,557.63 $11,085.51 $11,639.78 $12,221.77 53S ENVIRONMENTAL SAFTEY MGR. STEP STEP A STEP B STEP -C STEP D STEP E MONTHLY BASE SALARY $10,185.73 1$10,695.02 $11,229.77 $11,791.26 $12,380.82 2% effective October 1, 2021 119 ATTACHMENT C RESOLUTION NO. A RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF EL SEGUNDO, CALIFORNIA AND THE EL SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES' ASSOCIATION BARGAINING UNIT The City Council of the City of EI Segundo does hereby resolve as follows: Section 1: Discussions have taken place in the meet and confer process have resulted in a mutually agreeable Memorandum of Understanding between the City of EI Segundo and this Bargaining Unit. Section 2: Staff is authorized to implement all terms and conditions of the Memorandum of Understanding between the City of El Segundo and this Bargaining Unit. A copy of the Memorandum of Understanding is attached as Exhibit "A". Section 3: The City Clerk is directed to certify the adoption of this Resolution; record this Resolution in the book of the City's original resolutions, and make a minute of this adoption of the Resolution in the City Council's records and minutes of this meeting. Section 4: This Resolution will become effective immediately upon adoption and PASSED AND ADOPTED this day o f , 2019. Drew Boyles, Mayor 120 ATTACHMENT D RESOLUTION NO. FIXING THE EMPLOYER CONTRIBUTION AT AN EQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION WHEREAS, (1) City of EI Segundo is a contracting agency under Government Code Section 22920 and subject to the Public Employees' Medical and Hospital Care Act (the "Act") for participation by members of EI Segundo Supervisory and Professional Employees' Association and WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act shall fix the amount of the employer contribution by resolution; and WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act; and RESOLVED, (a) That the employer 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 up to a maximum of $1,500.00 per month, plus administrative fees and Contingency Reserve Fund assessments; and be it further RESOLVED, (b) City of EI 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, (c) That the participation of the employees and annuitants of City of EI 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 City of EI Segundo would not qualify as an agency or instrumentality of the state or political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer. RESOLVED, (d) That the executive body appoint and direct, and it does hereby appoint and direct, the City Clerk to file with the Board a verified copy of this resolution, and to perform on behalf of City of El Segundo all functions required of it under the Act. CHANGE - BY GROUP, EQUAL, 1 FIXED (REV. 1/2018) 121 Adopted at a regular meeting of the EI Segundo City Council at EI Segundo, CA, this 20th day of August, 2019. Signed: Drew Boyles, Mayor Attest: Tracy Weaver, City Clerk CHANGE - BY GROUP, EQUAL, 1 FIXED (REV. 1/2018) 122 ATTACHMENT E Aqreement No. Formatted: Highlight MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF EL SEGUNDO AND CALIFORNIA FORNIIA --M&TZ-RAS-RUBLI� , PROFESSIONAL PrNl3I�IC lre rT?oi v n:rartAi nr n 911 EL SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES' - BARGAINING ''N'T ASSOCIATION TERM: October 1 2018 to September 30-1 2022 123 Agreement No. TABLE OF CONTENTS ARTICLE I S E C T 10 N NUMBER.. .................. ... .............. ____ . . . .................. ...PAGE Article 1- Recognition Section 1- Classified Positions Represented by the ✓=lnionAssociation............................................... 6 Section 2 - City Recognition of Ibis+iAssocia................ ......................................... 6 Section 3 -Term of this Memorandum of Understanding (M.O.U)............. .... ..............................6 Article 2 - Non -Discrimination Statement of Non -Discrimination .............. Article 3 - Health and Welfare ..... .............6 Section1 -Health Insurance.........................................:............:..........................................................6. Section 2 -Alternative Medical Plans.......................:...:....................:..........................................:..:.:....7 Section3 - Dental Insurance ........... ............... ....................... ........ .............,,._,.............. ,,............ ......:....7 Section4 -Optical Insurance.........................................................................................................7 Section5 - Life Insurance..............................................................................................................7 Section6 - Insurance Cap . ......................._.....................................................................:....._.....:7 Section 7- Long Term Disability Insurance (LTD)... ........................................................................ 7 Section8 -Workers Compensation........................................................................................................7 Section 9 - Flexible Spending Account ............................ ............. ......................... ......... ........ ..7 Section 10- Bereavement Leave............................................................... ........ .................. .............7 Section 11- California State Disability Insurance (SDI) Program..........................................................7 Article 4 - Retirement Section 1- PERS Retirement Formulas..........................................................................................8 Section 2 - Retiree Medical Insurance Contribution...............................................................................8 Section 3 - Deferred Compensation Plan .................. »................. ............................. ....................... :......... 8 Section4 - Leave Payoff....................................... ........ .... ........ ............. ........... ....------ ................... 9 Section 5 - Cash Equivalency for Vacation, Sick Leave and Floating Holidays....................................9 Section 6 -Public Agency Retirement System (PARS) .................. :... ........................ ............... ........... 10 Article 5 - Sick Leave Section 1 - Accrued Sick Leave ....................................... Section 2 - Annual Medical Examination ....................... 2 .......................................................10 .........................................................1O 124 ,Agreement. No. Section 3 - Sick Leave Usage for Family Care ......... ........ ,........................... ...................................... 10 Section 4 - Catastrophic Illness Leave ... ............................................. ..................................... 10 Article 6 - Employee Assistance Program (EAP) ...._.........:.............................;,....... 11 Article 7 - Vacation Section 1- Accrual Schedule . ..................................... ....__................. .................... ,.......................... All Section 2 - Accrued Vacation Leave after six months................................:....:....................................11 Section 3 - Maximum Accumulation of Vacation................................_....._........_._......_.......................:11 Section 4 - Cash in Lieu of Vacation Time......................................................................................All Section 5 -Leave Payment Upon Separation .............................. ....... .._................................. 11 Article 8 - Holidays Section 1- Listing of Holidays and Personal Leave/Floating Holiday .................... ...... .............. 11 Section 2 - Holidays and Sundays ....-............................................... .............. _.......................... 12 Section 3 - Holidays and Fridays/Saturdays................ . ... ..................................................:..12 Section 4 - Floating Holiday.... . .......... .............. --_........................ .......... :...... 12 Section 5 - Leave Payment Upon Separation. .. ................................... .... ___ ----------- ........ ........12 Article 9 - Professional Development Educational Reimbursement .. 12 Article 10 - Computer Loan Program.....................::.... ..::.....:.......:.. _. ............::...:...... 13 Article 11- Salary Section 1 -Salary Adjustments ....................................... ....................................... .............. 13 Section 2 - Accelerated Salary Step Advancement.....................................................................13 Section3 - Direct Deposit......................................................................:......._.................:......13 Section 4 - Use of Personal Vehicle on Official City Business....................................................... 13 Section 5 - Educational Incentive Pay.........— ................................ ........ .............. I ......... —. 14 Section6 -Bilingual Pay..............................:..............................................................................14 Section7 - Longevity Pay.......................................................................................................... 14 Section8-Certfication Pay......... .............................................................................................. 14 Section 9 - Salary Table Step Advancement.......................................................................................15 Article 12 - Uniforms List of Job Classifications having uniforms/footwear provided ............................................. »...:.:::::_;_„ t6 3 Formatted: Highlight 125 Agreement No Article 13 - Overtime Section 1- Fair Labor Standards Act - Overtime Compensation ................... . ........................ 16 Section 2 - Definition of Hours Worked for Overtime - Computation purposes ................................. 16 Section 3 - Overtime Authorization ....:................. .........:......................................... .._............. ....... .......17 Section 4 - Maximum Accumulation of Compensatory Time.... . .................................................. 17 Section5 - Work Time Credit ...................................................................................................... 17 Article 14 - Grievance Procedure Section 1 - Definition of Terms............................................................................................... ... 17 Section2 - Time Limi:s.....................»»....»..»....................................... ........ ................................ 17 Section3 - Procedure................................................................................. .................. ..................... 18 Section 4 - Matters Excluded from the Grievance Procedure ............. ......... .......... ...__........... ...... 18 Section5 • Conferences............................................................................................................... 19 Section 6 - Employee appeals from Disciplinary Actions............................................................ 19 Article 15 - Layoff Section 1 - Grounds for Layoff ................. .............. ............................... ..................... 19 Section 2 - Notice to Employees...... .......... .......... ......... ............ ............... ................. 19 Section3 - At -Will Employees....................................................................................................... 20 Section4 - Procedures for Layoff.................:................................................................................. 20 Section5 - Breaking Ties ........... ............. ........ ....._......... ........ ....................... ..... .......... .-• • ............. 20 Section 6 - Reduction to a Vacant Position ... ...... ..... .._......... ............... ___ ...... ....... .......... ........... 20 Section 7 - Displacement Rights .......... .....................................................................................:..20 Section 8 - Salary Placement. _. ........................ ........... ........ ....... ___ ..... ................ ............... 20 Section 9 - Reemployment List..... ... ... ...................................................... 21 Section 10 -Rights upon Reemployment .. ...........I ... . ...... ::...:.......................... :... I.— ...... 21 Article 16 - Miscellaneous Section1- Credit Union... ......... .... __.......................,........,:..........................................................21 Section 2 - Temporary Assignment to Higher Classification .......... ................ .................................. 21 Section3 - Rest Periods ............ ......:.............. ....:.....::.............. ................... ........................21 Section 4 - Request for Reclassification Review ................ :_....... ........ ..... .. ................... .......... 22 Section5-Seniority:...............................................................................................................23 Section 6 - Standby Duty .... ..................... ............ .,................................... ... ---- 23 Section7 - Jury Duty .. .......... ......... :.................. .......:.......................... :................ .. ............... 23 Section8 - Cell Phone Stipend...................................................................................................24 Section 9 -Assignment of Work Schedule. ..........................,.............. ..... .. .... ............... ............ .24 4 126 ,Agreement No. f Formatted: Highlight Article 17 - Drug -Free Workplace Statement, Substance Abuse Policy, and Smoking and Break Policy ................ ...:.... ........... .............................. ............... 24 Article 18 - Personnel File Section1- Personnel File ............. ........................................... ............... ......... :.....::.............. 25 Section 2 - Derogatory Material.............................................................................................. 25 Section 3- Positive Material ........................ .................... :....... :............................. . ............... 25 Article 19 --Agent-y--&hsp-Agreem- aRtAssociation Deductions...... ....................... 25 Article 20 - Catastrophic Leave Bank .......... ........ ......................................................... 27 Signature Page ...... .......... ................... :................... ...... ..:....... ,................................. .... 28 Appendix A - Bargaining Unit Classifications Appendix B - Smoking Policy Appendix C - Drug Free Workplace Statement and Substance Abuse Policy, Revised July 1,2008 Appendix D- Department of Transportation Drug Testing Guidelines Appendix E - Catastrophic Leave Bank Policy Appendix F - Occupational Injury and Illness Policy Appendix G - Salary Schedule Ei•festiue F-rs41a �° '^^ °^pi 20! 8'f`^"'E'f"^^"^^ Af this aweement- 5 Formatted: Highlight 127 Agreement No. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF EL SEGUNDO AND GAL4F-QRNJA TFAN}S--rco��c .•oi gLAG, PROF€SSIGNAL EL SEGUNDOANDMEDI Ai EMPLOYEES UN IGNi LOGAi 911 SUPERVISORYAND PROFESSIONAL EMPLOYEES'_RARGAINIINIG_ 1-1149 ASSOCIATION ARTICLE I- RECOGNITION SECTION 1. Pursuant to the provisions of the City of EI Segundo Resolution No. 3208, establishing procedures governing employer-employee organization relations, the City of EI Segundo (hereinafter referred to as the 'City' and 'Employer (interchangeably) has recognized the EI Segundo Su ervisor and Prof sional Em to ee-ss As iation Gali4emia r.,a..,,steffi o ,wc Ffofessicxtal--an9-Ne&eal&Rla;eyees 1dn.on, 9111�a-afi6iatO,o-01 th0 1 A e FAaIeSO' G,:811 8MGed-of Teams ars�heresna"er••relerreddo as tae nia •::: _ ,1 7fter r3ferred Io as the Hz�saciahrn i as the exclusive representative of employees within the bargaining unit consisting ofthe classified positions listed in Appendix A - Bargaining Unit Classifications. SECTION 2. The City recognizes the Association ktrtien as the representative of the employees in the classifications and assignments set forth in Section 1, above, for the purpose of meeting the joint obligations of the City and U;4wDgAssoc+atlon as set forth within the Meyers-Milias-Brown Act, Government Code 3500 e! seg. SECTION 3- The term ofthis Memorandum of Understanding (MOU) shall commence on October 1, 20184 and end on September 30, 20229. ARTICLE 11- NON-DISCRIMINATION Neither the City nor the 64ieAAssociatichi shall discriminate against any employee because of race, color, age, creed, national origin, sex, handicap, medical condition, marital status, or uttie;tAssoclation activities in any matter - [ARTICLE III- HEALTH AND WELFARE SECTION 1 Health Insurance - Employees participate as members of the PERS administered Public Employees' Medical and Hospital Care Program. Employees have a choice of HMO and Indemnity medical coverage plans A City Medical Contribution: E*fee" -eb, rtapt-l-264-+S-an44Eor the term of this Agreement, the City will pay the Public Employees' Medical and Hospital Care Act ("PEMHCA") minimum contribution required under Government Code section 22892 The City will contribute as outlined beloepl�- toward an employee's and his/her eligible dependent(s)' medical costs. This maximum contribution below includes the minimum PEMHCA contribution: 1- Effective on the First da v of the second month followi ng C ity Council ado tion of the MOU 1AE+ Clly I rgntribution or s1.500 per member per mpnih for medical -health insurance coverage .............-....._._. ... ...................... medical -health insurance covera e' 10 Formatted: Highlight Formatted: Numbered + Level: 1 + Numbering Style: A, B, C, ... + Start at: l + Alignment: Left + Aligned at: 0.08" + Indent at: 0.33" Formatted: Indent: Left: 0.33", First line: 0" Formatted: Numbered + Level: 1 + Numbering Style: i, ii, iii, - + Start at: l + Alignment: Left + Aligned at: 0.33" + Indent at: 0.83" Formatted: No underline, Underline color: Auto ...........Formatted: No underline, Underline color: Auto 128 (agreement No. Formatted: Highlight iii. Effective Jaw fv 1.2021. City contribution of $1.600 per memberoe r month for medical- -health insurance coverage, M Effective January 1 2022 City contribution of $1,650 per member per month for medical - health insurance cove rape - An premium amounts above the City oG- �'" ^^^ontributlon Any employee ee p Y p Formatted: Widow/Orphan control am ou n t ff"imum $1,200 r:t,. ^^^.,:c,uto will be paid by the employee through pre-tax payroll deduction. Effective tha first day of the second month fol Iowin Q C ity Cow ncil Ado tion of the MOU em to ees sh all I ---- Formatted: Indent: First line: 0", Widow/Orphan no longer be allowed to out out of medical covee I control J =.eGto-o,^ ^gig:141�c' emge ^„Ad,a�a�. y,��., r:�, nom. -.p esBaU A rrited-+R-t#e-emp ^r. -.Red This deferFed 5ppi�e{161t1�T^�+vc�c-pm��iE-GOFR�BfiSa�iLiR--BlF1d6F i€ge�ia—W�9tN vy�s RetirerrleaF ^�y5t8FK FO$F tat"_ - Plow! `10 00 04 FADS Formatted: Indent: Left: 0", First line: 0", pra"``'". 1^ Q"rth p►aofa€ 6tk�e�t+a9di^O.eF 918- Widow/Orphan control SECTION 2. Alternative Medical Plans - During the term of this agreement, the City may reopen Formatted: Widow/Orphan control the contract in order to consider alternatives to the PERS medical plan. The City agrees that it will only propose plans that provide for a cost-effective, comprehensive medical package for employees and their families (i.e., provides comparable benefits to current plan, including portability). There will be no change in insurance plans ^^^r te j@AW0Fy 20GO-without agreement of the parties., (Formatted: Strikethrough SECTION 3. Dental Insurance - The City provides fully paid dental insurance for the employee and Formatted: Strikethrough all eligible dependents. SECTION 4. Optical Insurance - The City provides fully paid optical insurance for the employee and all eligible dependents. SECTION 5. Life Insurance - Employees are provided a fully paid $50,000 term life insurance policy. Additional coverage for self ($100,000 maximum) and for family members may be purchased at group rates by the individual employee. SECTION 6. Insurance Cap - The City's aggregate contribution for current dental, optical and life insurance for the term of this agreement shall be set and fixed at $184.25 per month. The City shall provide optical benefits for each employee and the employee's dependents. Within the monthly contribution cap currently established for dental, optical and life insurance coverage, the City's monthly contributions toward dental and life insurance coverage for an employee shall be made after the City's full monthly vision benefit contribution for an employee and his/her dependents has been made. SECTION 7. Lon Term Disability to tv (LTD) - The City provides employees with a fully paid long term disability insurance policy which allows continuance of 66-2/3% of the first $9,750 of the employee's monthly salary- The policy applies to non -job related occurrences and benefits are payable following a 60 -day waiting period. The maximum benefit period -varies on the basis of the employee's age at the time disability begins. SECTION 8. Workers Compensation - The City provides employees who receive job related injuries that are compensable under California Worker's Compensation Laws 75 % of their regular monthly salary for a period of up to one year. SECTION 9. Flexible Spend€na Account - Pursuant to applicable federal laws, the City allows for payment of employee paid insurance premiums, non -reimbursed medical expenses and/or dependent care expenses with pre-tax dollars. Participation in the program is voluntary. SECTION 10. Bereavement Leave - The present practice of granting three (3) working days of 129 Agreement No. bereavement leave per incident shall be increased gR to ;forty (40) hours : Commented [SP1]: Change to five working days (or a commensurate with the empioy_e_QS ncrmally assigned work schedule per incident in those week) to ensure that on a 44-hour work week, we don't circumstances where travel to a funeral or other memorial proceeding is 500 or more miles one way have to take add'Itime off. as measured from the EI Segundo City Hall Additionally, the definition of the immediate family whose funeral or memorial proceeding qualifies for use of bereavement leave, shall include the children, parents, siblings, grandparents of the employee, the employee's spouse or significant other. SECTION 11. California State Disability Insurance SDI Program - The City has taken all the Formatted: Normal, Indent: Left 0", First line: 0", necessary administrative steps to provide k#4iAssociauon employees with State Disability Space Before: 0.1 pt, Line spacing: single I n s u r a n c e Program coverage through the California Employment Development Department. All actual costs associated with participation in the State Disability Program will be the responsibility of iniaAssociation employees. ARTICLE N- RETIREMENT SECTION 1. (a) Effective November 8, 2000, employees participate in the Public Employees Retirement System (PERS) 2% at 55 Miscellaneous Plan (b) Tier II - As soon as practicable, the City shall amend its contract with the California Public Employees' Retirement System (CaIPERS) to implement the 2%@60 retirement formula in accordance with Government Code Section 21353. This new formula shall apply to miscellaneous employees who are hired on or after the effective date of the CaIPERS contract amendment and are otherwise nota "new employee" and/or "new member' of CaIPERS under Government Code section 7522 04 of AB 340, also known as the California Pension Reform Act of 2013. Effective January 1, 2013, new miscellaneous employees and/or members, as defined by AB 340, will be subject to the 2%@62 retirement formula as well as all other statutory requirements established by A6340. (c) The Plan's retirement benefits are integrated with Social Security. (d) Effective January 1, 1992, the City's contract with PERS was amended to include the single highest year retirement calculation option. The present City contract with PERS also calls for incremental yearly increases in the City contribution towards retirees' medical coverage (currently $375 per month) so that by 1995 the contribution for current employees and retirees will be equal. (e) Effective the beginning of the first pay period in January 2018, and for the term of this agreement, miscellaneous employees defined as "classic" members by the California Pension Reform Act of 2013 (A13340) agree to pay the statutorily required employee contribution equal to seven percent (7%) (pre-tax) of compensation (4 Formatted: Left, Indent: Left: 0.09", No bullets or (g) i. Effective on the first day of the first full pay-period in September 202 , miscellaneous numbering employees defined as "classic" members of the Aassociation by the California Pension Reform Act - of 2013 (AB 340) agree to pay an additional one percent (1%) for a total required employee contribution of ,,right percent (8%) (pre-tax) of compensation. -54o iltene us"ff66t've the `ame4ate, Me se-Sc'it�Il m o •-•berr. e(1 a ba Fg'1•1� riniFshal44R-e-A4reasWwe-pexeat { °k HaApl Fer-allstopnewels), The-Rew s !aq se edul" attar3S ApJ2'$ Effective January 1, 2013, "new employees" and/or "new members", as defined by AB 340, will be statutorily required to pay half of the normal cost of retirement benefits. SECTION 2. Retiree Medical Insurance Contribution - A member of the AsspciationWoiop will be eligible to receive the City-provided retiree medical insurance contribution towards the 10 130 ,Agreement No. member's and his/her eligible dependent(s)' medical costs, which is equal to that amount putlln in Arlt le Ill Section 1 sub -section A ii i 0. Iv available to As so c i a t i o n Unja^^ members currently employed by the Ceity, eft A after a minimum of five (5) fu 11 years of service with the City of EI Segundo. The City's maximum per monlh contribution oullinW in Article III. Section sun-s-,aioii A ff. iiiii. iv 1 s friaximum $1.2W . _�wilri utigincludes the PEMHCA minimum contribution required under Government Code section 22892. Any Retiree remium amounts above the Ci ty con tribuIion amount will be paid by the retiree through their CaIPERS annuity. will of ooti-e EebR ;y1,2A48 the G y il-pay-en-hekia"f-eaa erk feNfee-up-te $ 1.2 00 . nih t.,waPda the F Iime's a d hIS1h f-eiigifale-dei)en•1. nt(s)' •--.•------- eaiCal-sBsib c ..••a�•IGa-F6HF8FEe-eBH#HCeH-8VOP4fi-e34 .- :I-i ..II:....A :.. A.ii01e 111 SeG4" SECTION 3. Deferred Comoensation Plan -_ Employees are e l i g i b l e to participate i n the International City Management Association Retirement Corporation (ICMA-RC) and the Nationwide Retirement Solutions (NRS) Deferred Compensation Plans Participation is voluntary and there is no City contribution to the plan. SECTION 4. Leave Payoff - Employees retiring from the City service are paid the accumulated total of their unused vacation leave, personal floating holiday leave, compensatory leave, and sick leave, as provided for in this Agreement. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay SECTION 5. Government Code 20022(a)(1) provides that compensation for purposes of computing PERS retirement benefits includes remuneration paid in cash because of holidays, sick leave and vacation, as well as other remuneration furnished in payment for services. This MOU section memorializes that members of this unit have been contractually eligible to receive City paid cash equivalencies forvacation, sick leaveand floating holidays accrued during the employee's final year of employment. Said members have also been eligibleto receive a cash distribution equal to the monthly differential between $500.00 andthe monthly amount designated byeach memberfor funding health insurance and similar programs (herein referred to as an insurance differential ) Pursuantto City Council action in December 1991, the former management/confidential unit was modified, with members of this Supervisory Unit being removed from the then existing management/confidential unit. The classifications now contained within this Supervisory Unit being removed from the then existing management/confidential unit. The classifications now contained within this Supervisory Unit were included within the prior management/confidential unit and City contractual agreements prior to December 1, 1992to provide the management/confidential unit members with payment for vacation, sick leave and floating holidays accrued during the final year of employment, as well as the above insurance differential, fully insured to the benefit of those classifications now -within -the Supervisory Unit. On June 2, 1992, the City Council adopted the first Memorandum of Understanding between the City and the Supervisory Unit, with Article VII of said MOU providing in pertinent part that all wages, hours and terms and conditions of employment in full force and effect prior to the adoption of the MOU, are to remain infull force and effect and are to be set forth within a later document entitled a Comprehensive Memorandum of Understanding. As members ofthe prior management/confidential unit, those classifications within the Supervisory Unit were therefore subject to earlier Council determination providing the described paid remuneration for vacation, sick leave and floating holidays accrued during the final year of employment, as well as the above insurance differential, Formatted: Highlight Formatted: Highlight Formatted: Highlight 131 Agreement No. and the June 2, 1992 Memorandum of Understanding contractually signifies that said benefits are to remain in full force and effect unless and until altered pursuant to the meet and confer process. This "Comprehensive Memorandum of Understanding" thereby codifies pre -December 1992 contractual provision of the stated compensation benefits to unit members SECTION 6. Public Agency Retirement System (PARS) - Effective October 1, 2008, the City will contract with the PublicAgency Retirement System (PARS) to provide an additional retirement benefit for eligible employees. Eligible employees are those who are 1) 55 years of age or older, 2) have completed 15 years of continuous service with the City of EI Segundo and 3) service ordisability retire from the City of EI Segundo. Eligible employees are entitled to receive the PARS 5 @ 55 retirement enhancement formula as a supplement to the City's 2% @ 55 Public Employees' Retirement System formula. This benefit will no longer be available to bargaining unit members who are both 1) hired and/or appointed to a position in the bargaining unit on or after October 1, 2012, and 2) not already a participant in the plan. The City and the PARS participants have agreed to cease future accruals under the current PARS Plan and to relinquish PARS participants of their obligations to make future mandatory contributions to fund the current PARS Plan, as detailed in the executed side letter "Public Agency Retirement System Retirement Enhancement Plan ('PARS')" and in the City's November 3, 2015 Resolution adopting "The City of EI Segundo Public Agency Retirement System (PARS) retirement Formatted: indent: Left: 0.08", First line: 0" Enhancement Plan (as Amended and Restated Effective October 31, 2015) ("Plan Amendment"). ARTICLE V SICK LEAVE SECTION 1 Employees accrue sick leave at a rate of eight (8) hours per month The maximum carryover of sick leave from November 30 to December 1 of each year is six hundred (600) hours. City provides a one hundred percent (100%) payoff each December 1Q1hof any accumulated sick leave hours above the maximum carryover Employees who, on July 1, 1998, had an accumulated sick leave balance higher than six hundred (600) hours will have a maximum carryover equal to their accumulated sick leave balance on that date. No such maximum carryover can be greater than one thousand fifty-six (1056) hours. Should an employee's personal sick leave accrual limit drop below six hundred (600) hours, their future maximum carryover shall not be allowed to exceed six hundred (600) hours. Employees, with at least five (5) full years of service with the City, receive payment for one hundred percent (100%) of their accumulated sick leave upon service retirement, disability retirement, or death Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay SECTION 2. Annual Medical Examination - Employees are eligible for a fully paid comprehensive medical examination each year. The City currently utilizes Westchester Medical Group/Center for Heart and Health for the examinations. The results of the examination include extensive written documentation and feedback, fitness consultation, recommended further testing and/or adjustments to current lifestyle practices and ongoing monitoring Up to two (2) days of sick leave may be used each year for physical examinations SECTION 3 Sick Leave U sage for Family Care - Affected employees are eligible to utilize a maximum offorty-eight (48) hours of sick leave percalendar year inorder that care may be provided 10 132 Agreement No Formatted: Highlight I to immediate family members suffering from illness or injury. The term "immediate family member' shall exclusively include the children, parents, siblings, the grandparents of the employee, the employee's spouse or significant other. "Immediate family member" shall also include mother-in-law and father-in-law. The City shall require each affected employee utilizing sick leave for said purpose to provide in writing a statement evidencing the facts justifying the use of sick leave in this regard SECTION 4. Catastrophic Illness L_e_aye . An employee may transfer sick leave, vacation or compensatory leave to a sick leave bank to be donated to an employee who is experiencing catastrophic illness and has exhausted all personal sick leave. Such a transfer can be made on July 1 of each year or during additional designated times on forms provided by the City of EI Segundo. The City has the right to verify all catastrophic illnesses before donation from the sick leave bank. 11 133 Agreement No. ARTICLE VI - EMPLOYEE ASSISTANCE PROGRAM (EAP) Provides confidential assistance, referrals, and counseling to the employee and members of the immediate family. The program is designed to provide professional assistance and support to help employees and their families resolve problems that affect their personal lives orjob performance. The City shall provide the basic levei of service to employees at City cost. Basic level shall consist of three (3) sessions per member/per incident/per year. Employees may voluntarily enroll in the EAP/Outpatient tier at their own cost ($9.52/month). ARTICLE VII - VACATION SECTION 1. Employees covered by this MOU_shall accumulate vacation leave as follows: Asseematireff From commencement of the 1st year of service through and including completion of the 5th year of service: 96 hours; From commencement of the 6th year of service through and including completion of the 10th year of service: 120 hours; From commencement of the 11th year of service through and including completion of the 15th year of service: 144 hours; From commencement of the 16th year of service and for all years of service thereafter: 176 hours ' Formatted: Bulleted + Level: 1 + Aligned Indent at: 0.59" Currenlinon-probationary -ainnlovees Effective 2019• employees who have passed their probationary oeriod as of . 2019vacation Commented [SP2]- Effective first pay period after accrual rates shall be determined by combining total years of City service and orior PERSservicewith ratification of agreement. Does the City still need additional another agency. time for this? Nobauooary WmoEoyeas Employeesa whg are on probabon, whether nLvdv hired qirotional. e�-i+�tae- �iioA�raea:ese r-•w`��..� no ed-# ergo f --2419; s h a I I have their vacation accrual rates shalWe-d eterm ined byccmhining total years of City service toeesossaa Commented [SP3] As of the ratifcationofthis ve agreement of pronation. Em olovee&--Wbe-sr? hIre+c€-Sa rnnislEn-LntCs-a-nesit ion-reeres rated- h+S-Ao r4.-e1neen l- op•ar-afi -F - 20i•A vaCatior+-rft�nirates ShaU•i dat2rnsinecl hv•- ntn dg[ai years -of •riitvservicaandS- tgr-PERS ryica wish -IFI Other anenev in the nav-period following -the emnlovaes *2&Sag of nrobalion. SECTION 2. Employees may use their accrued vacation leave after six (6) months of employment. SECTION 3. Maximum accumulation of vacation leave allowed is the equivalent of two (2) years of service accrual. SECTION 4, Employees who have completed one year of service may receive cash payment in 12 134 ,Agreement are No. entitled I Formatted: Highlight lieu of accrued vacation leave up to a maximum of 100% the annual accrual to which they by length of service. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay. Employees may exercisethis option twice percalendaryear- SECTION 5. Employees shall receive paymentforone hundred percent (100°/x) oftheir accumulated vacation leave upon service retirement, disability retirement, death, resignation, or termination. Effective on the beginning of the first pay period in March 2018, vacation leave payouts shall be paid at the employee's base salary hourly rate ARTICLE VIII -HOLIDAYS SECTION 1 Employees shall receive the following holidays: January rsr The third Monday in January (Martin Luther King Jr. Day) The third Monday in February (President's Day) The last Monday in May (Memorial Day) July 4th The first Monday in September (Labor Day) November 11th (Veteran's Day) Thanksgiving Day The Friday after Thanksgiving Day December 24th December 25th December 3171 Holidays will be paid based on the employee's assigned daily work schedule. For example, employees assigned to a 4110 schedule will have holidays paid in ten (10) hour increments. Employees assigned to a 91:80 schedule will have holidays paid in nine (9) hour increments, unless the holiday falls on their assigned eight-hour scheduled work day in which case they will be paid eight hours of holiday pay. In addition to the holidays enumerated above, each employee shall receive one day (10 hours for 4/10 scheduled employees; 9 hours for 9/80 scheduled employees) per calendar year as a Personal Leave/Floating Holiday. The Personal Leave/Floating Holiday shall be credited to the employee every January. Newly hired bargaining unit members shall also receive this personal leave day which may be used six (6) months after the employee's initial appointment date. SECTION 2. In the event any of the above holidays fall on a Sunday, it will be observed on the following Monday and City Hall will be closed. SECTION 3. In the event any of the above holidays fall on a Friday or Saturday (or an employee's otherwise regularly scheduled day oft), the employee will receive a floating holiday consisting of a number of hours based on the employee's assigned daily work schedule. For example, employees assigned to a 4/10 schedule will receive a floating holiday of ten (10) hours. Employees assigned to a 9/80 schedule will receive a floating holiday of nine (9) hours. SECTION 4. Floating Holidays will be credited to the employee's leave bank the pay period in which the holiday falls. Floating Holiday hours may not be carried over to the following calendar year. However, Floating Holiday hours credited in either November or December may be carried over to the next calendar year, but must be used by October 31st of the following year. SECTION 5. Employees shall receive payment for one hundred percent (100%) of their accumulated Personal Leave/Floating Holiday leave upon service retirement, disability retirement, death, resignation, or termination. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay. 13 135 Agreement No. ARTICLE IX -PROFESSIONAL DEVELOPMENT SECT10N t Collette course reimbursarnen; Employees are reimbursed 100% of the cost of tuition and books to a maximum of $2,000 per calendar year for satisfactory completion of work related college courses. Requires prior written approval of department head and City Manager and requires a C average or better grade- With- the- rade.With-the- approval- of-the-department--head-and/or-Gity-Manager;- the•- City- also -pays-the-Gost-of--an employee's --p :)fe&sional--memb&r-ship--fees-and--conference--- meeting--ancl- Nerkshop-attendafaGe. Employees who participate inthe program must sign the following agreement: ,Educational Reimbursement -' I certify that I successfully completed the course(s),_ Formatted: Left, Indent: Left: 0.13", First line: 0", Right receiving at least a grade of'C' or better" (Attach copy of grade verification) Further, I agree 0.51", Space Before: 0 pt, Line spacing: single to refund the City or have deducted from my final paycheck any educational reimbursement funds received under this program if I should leave the City's employment, voluntarily or through termination, with cause, within one year after completion ofthe course work for which I am to receive reimbursement, in accordance with the following schedule. Below is the reimbursement schedule for the full months worked between course completion and resignation dates and the percentage of the total reimbursement to be refunded to the City 1 100% 7 50% 2 100% A 40% 3 90% 9 30% 4 80% 10 20% 5 70% 11 10% 6 60% 12 0°1 Probationary employees are not eligible to participate in this program. SECTION 2. mainberships conferences. meel+n s. and workshop5 -" Formatted: Font: (Default) Arial, 10 pt ----- -- Formatted: Font: (Default) Arial, 10 pt .. Formatted: Font: (Default) Arial, 10 pt Willi the goproval of the depnmenl head and/or Cit Marga or the Q-1, also nyvt the Cast of all errrployee's ❑rofessional tnember5hl4 fees and conference meeting andyoofkshon attendance, ARTICLE,( -COMPUTER LOAN PROGRAM Formatted: Font: Bold Effective u pan ado otion of this MOU by the C i ly Council the Com outer Loan P rog ram wdl be eliminated. a rid no new corn P uter loans w)II be q ranted by the Cit . However current. em plovees with ou tstan d! nQ Cam jauter Loans. the Cl ky an d em plovee shall con lin tie to recocinize exi stj rg loan and re a ment obli ations under the same terms and conditions. The following language Is relamed subject to reflect the prior understandincl of the parties and for historical context__ Employees are eligible to receive an interest-free—ioanfree loan not to exceed $4,000 for the purpose of purchasing personal computer hardware, software, ergonomically correct furniture and related equipment. Loans shall be repaid through payroll deductions over a three (3) year period. The City shall retain title, as security, to any equipment purchased through the program until the loan is fully paid off After the fact financing shall be permitted upon the loan applicant receiving prior written approval from the Director of Finance Outstanding ban balances must be paid off at the time an employee separates from the City: The Human Resources Department shall update Program guidelines periodically as necessitated by changes in technology or organizational 14 136 requirementsX ARTICLE l -SALARY ,Agreement No. SECTION 1. Salary Adjustments - €ffec4lve beQ}re3 egg Me (451 pay peFied fame �ar��•ililli-Sha[I�E6e14e�k5ECalafjr-rf7Gre2be-(five-pm'o^e„�`r°'.ro7�apvun "pica-, i-r.rne ,a;..�o i�� c v„: �H The City shall provide the following salary increases to employees, rLc ao end:x • Effective upon the first day of the first payroll permaflar City Council ratification Or this MO U. increase base salwy by 49' • Effective Pay Period that includes October 1 2019: increase base sale Two Percent (2%) • Effective Pay Period that includes October 1 2020: increase base salary by Two Percent (2%) • Effective Pay Period that includes October 1 2021: increase base salary b Two Percent 2% SECTION 2. Accelerated Salary Slap Advancement - Employees who have yet to reach the top step of their salary range are eligible to receive an accelerated salary step advancement of up to 5% ina 12month period upon recommendation and approval bythe department headand City Manager. An accelerated salary advancement is intended to recognize an employee's job performance which consistently and uniquely exceeds normal expectations. SECTION 3. Direct Deposit - The City shall electronically deposit employees' paychecks directly into a savings or checking account designated by the employee. Employees shall be responsible for providing the Finance Department with the correct transit routing number of their banking institution and the correct number of the account into which their paycheck will be deposited. Exceptions to this policy shall be granted upon an employee's written request to the Finance Director. Formatted: Highlight Commented [SP41: Thereare current employees using jI this program. The language should be adjusted to reflect J this. Formatted: Font: (Default) Arial, 10 pt, Bold Formatted: Highlight ""- Formatted: Bulleted + Level: 1 + Aligned at: 0.33" + Indent at: 0.58" Formatted: Indent: Left: 0.33" Formatted: Bulleted + Level: 1 + Aligned at: 0.33" + Indent at: 0.58" Formatted: List Paragraph, Left, Right. 0", Line spacing: single, No bullets or numbering Formatted: No bullets or numbering `' """' Formatted: Indent: Left: Q58" SECTION 4. Use of Personal Vehicle on Official City Business - Employees authorized to use a I t-------- I Formatted: Indent: Left 0.08", First line: 0", Right: personal vehicle while on official City business will receive mileage reimbursement at the rate 0.13", Space Before: 0 pt, Line spacing: Multiple 1.07 Ii approved by the Internal Revenue Service. Use of a personal vehicle will not be authorized if a City motor pool vehicle is available to the employee. Under appropriate circumstances, Department Heads may approve exceptions to the requirement to utilize available motor pool vehicles. SECTION 5. Educational Incentive Pay- Eligible employees shall be entitled to receive educational incentive pay as shown below- Eligibility for educational incentive pay is limited to those employees who (a) are working in ajob classification that does not require a bachelor's degree or higher degree to qualify for the classification, and (b) were awarded such degree from an accredited college or university in one of the majors of public administration, business administration, engineering, or other job-related major, which had been approved by the department head, in writing. Educational Incentive Pay Job Classifications Occupying Salary Grades 30S - 39S: $318.04/month Job Classifications Occupying Salary Grades 40S - 49S: $407.11/month Job Classifications Occupying Salary Grades 50S - 53S: $449.38/month If during the term of this Memorandum of Understanding a job classification is assigned a salary 15 137 Agreement No. grade higher than 53S, the flat dollar monthly amount of educational incentive pay for the employee shall be equivalent to five percent (5%) of the base salary E Step of the salary grade. SECTION 6. Bilingual Pay - An employee who demonstrates conversational and written fluency in a language approved by their Department Head and who is assigned duties in which such language skills are regularly used, shall be entitled to bilingual pay as shown below. The City will be responsible for utilizing a standardized, industry accepted test (such as Berlitz, Inc ) to determine an employee's qualifications for bilingual pay. Bilingual Pay Job Classifications Occupying Salary Grades 30S - 39S: $159.02/month Job Classifications Occupying Salary Grades 40S -498: $203.56/month Job Classifications Occupying Salary Grades 505- 53S: $224.69/month If during the term of this Memorandum of Understanding a job classification is assigned a salary grade higher than 53S, the flat dollar monthly amount of bilingual pay for the employee shall be equivalent to two and one-half percent (2.5%) ofthe base salary E Step ofthe salary grade. SECTION 7. Lorinevilv._f'ay - An employee who has completed twenty (20) years of continuous service with the City of EI Segundo shall be entitled to longevity pay as shown below 16 138 Agreement No. 54421 Longevity Pay Job Classifications Occupying Salary Grades 30S - 39S: Job Classifications Occupying Salary Grade -- 40S - 49S: Job Classifications Occupying Salary Grades 50S - 53S: $318 04/month $407.11 /month $449.38/month If during the term of this Memorandum of Understanding a job classification is assigned a salary grade higher than 53S, the flat dollar monthly amount of longevity pay for the employee shall be equivalent to five percent (5%) of the base salary E Step of the salary grade. SECTION 8. Certification Payr Employees occupying the job classifications of Wastewater Supervisor and Water Supervisor shall be entitled to certification pay as shown below for obtaining and maintaining a certification above the level required on the City Council approved class specification. Eligible certifications will be determined by the employee's Department Head. 1 - Certification Pay Job Classifications Occupying Salary Grades 30S - 39S: Job Classifications Occupying Salary Grades 40S - 49S: Job Classifications Occupying Salary Grades 50S - 53S: 17 Formatted: Body Text, Justified, Indent Left: 0.1", Space Before: 8.8 pt, Line spacing. Multiple 1.01 Ii Formatted: Space Before: 0 pt, Tab stops: 2.78", Left $318.04/month $407.11/month $449.38/month J' Formatted:Indent: Left: 0" 139 Agreement No. 544:2 If during the term of this Memorandum of Understanding a job classification is assigned a salary grade higher than 53S, the flat dollar monthly amount of certification pay for the employee shall be equivalent to five percent (5%) of the base salary E Step of the salary grade SECTION 9 Salary Table Step Advancement The advancement of an employee from Step A to Step B shall be on the beginning of the pay period immediately following satisfactory completion of his or herfirst six months'service Advancement from Step B to Step C, from Step C to Step D, and from Step D to Step E, shall each occur on the beginning of the pay period immediately after completion of one years satisfactory service in each of such classification. A supervisor may recommend at any time to the department head that an employee receive an accelerated advancement to the next salary Step B, C, D, or E, based on exemplary job performance If the department head concurs, he/she shall submit a written report on the prescribed form to the Director of Human Resources citing specific examples of work performed by the employee that consistently exceeds expectations and warrants approval of the next salary step prior to the employee's anniversary date. The Director of Human Resources shall submit the request along with a recommendation for action by the City Manager. An employee may receive more than one salary step advancement within a twelve (12) month period of time, if warranted The accelerated salary advancement(s) shall not change the affected employee's anniversary date. ARTICLE XII - UNIFORMS Employees occupying the following job classifications shall have uniforms and footwear provided and replaced by the City: Assistant Fire Marshal Crime Prevention Analyst 1/II Emergency Management Coordinator Environmental Safety Manager Equipment Maintenance Supervisor Facilities Maintenance Supervisor Fire Marshal Park Maintenance Su4pervisor Police Records Supervisor Principal Environmental Specialist Senior Building Inspector Street Maintenance Supervisor Wastewater Supervisor Water Supervisor Department Heads will determine appropriate uniform and footwear for employees occupying Departmental job classifications Style and cost will be determined solely by the City, with the Association provided the opportunity for information input The determination ofthe City shall not be sSubject to administrative or judicial appeal. Uniform cleaning services shall be provided by the City In addition, an Uniea,;.; ^. -[.on member occupying the job classifications of Assistant Fire Marshal, Environmental Safety Manager, Principal Environmental Specialist, Fire Marshal, Crime Prevention Analyst l/ll, Emergency Management Coordinator, Police Records Supervisor and Senior Building Inspector shall receive a uniform cleaning allowance of $400 per year ARTICLE XIII -OVERTIME SECTION 1. Fair labor Standards Act —Overtime Cam ensalion (a) Pursuant to the Fair Labor Standards Act, employees occupying the classifications and Formatted: Indent: Left: 0.09", First line: 0.01", Right: 0.14", Space Before: 0 pt, Line spadruy Multiple 1.08 li 140 Agreement No. 644 assignments described in Appendix A, are entitled to overtime pay at the rate of one and one-half (1.5) times their regular rate of pay for all hours worked in excess of forty (40) hours in a seven (7) day workweek, as defined in Article XVI, Section 9. (b) Effective January 6, 2018, employees of this bargaining unit shall work a "9/80" schedule, which consists of eighty (80) scheduled hours in a 14 -day (two-week) cycle where, (1) in one week the employee works four 9 -hour workdays and one 8 -hour workday , and (2) the subsequent week consists of four 9 -hour workdays. For FLSA purposes the "work week" for FLSA overtime purposes shall be established as four hours into the shift of the eight-hour day and in such a manner that no consecutive seven-day (168 hour) period shall exceed 40 hours. The work week for employees working other than a Monday through Friday schedule shall be defined in such a manner as to comply with FLSA work period requirements. SECTION 2. Definition of hours worked for overtime - Com putation-Pumoses The Cily. for ourposes of calculatina overtime pay, will include holiday leave as time worked i ; amrauta3-olr-CAIFOO -_P : The following shall not be considered as time worked for purposes of computing entitlement to overtime compensation: 1. Meal breaks; 2. Utilization of paid or non -paid leaves of absence (including but not limited to vacation leave, sick leave, holiday-leaue, -leave wkhau! paywithout pay, s9F+5pc43saWP1-"ecom 3enSaiorY t me off); 3. All travel time to and from the work site when responding to a regularly scheduled shift; 4 All time in off-duty voluntary training assignments (homework, study time, meal time, sleep, etc.). 5. All off-duty travel; 6. All time for personal preparation and clean up; 7. Any other time not deemed hours worked by the FLSA, except holiday leave.) SECTION 3. Overtime Authorization No employee shall be eligible for receipt of overtime compensation unless the working of overtime hours has been specifically authorized in advance by the employee's supervisor. SECTION 4. Affected employees shall be entitled to accumulate a maximum of eighty (80) hours of compensatory time off. Utilization of compensatory time off shall be subject to approval of the affected employee's department head. Employees may opt to receive cash payment for accrued compensatory leave earned yearly. Employees shall receive payment for one hundred percent (100%) of their accumulated compensatory leave upon service retirement, disability retirement, death, resignation, or termination. Effective beginning of the first pay period in March 2018, leave payouts shall be paid at the employee's base salary hourly rate of pay. SECTION 5. Affected employees ordered by a supervisor to return to a designated worksite other than during the employee's regularly scheduled hours of work and at a time not contiguous with said regularly scheduled hours of work, shall be provided a minimum of four (4) hours work time credit. Said minimum of four (4) hours shall then be included within the work period described in Section 1 for computation of overtime purposes. 19 ARTICLE XIV - GRIEVANCE PROCEDURE SECTION I. DEFINITION OF TERMS 141 Agreement No. 5442 A. Grievance -A grievance is a violation, misinterpretation ormisa0plicationofaspecifiic written departmental or agency rule or regulation or a specific provision of a memorandum of understanding A grievance is distinct from an appeal in that it is a violation, misinterpretation or misapplication of a specific written departmental or agency rule and/or policy or a specific provision of a memorandum of understanding. B. Grievant - A grievant is an employee or group of employees adversely affected by an act or omission of the agency C. Day_-A day is a calendar day D. Immediate Suoefvisor - The first level supervisor of the grievant. SECTION 2 TIME LIMITS A Comoliance and Flexibility_- With the written consent of both parties, the time limitation for any step may be extended or shortened 8. Calculation of Time Limits -Time limitsfor appeal provided ineach level shall begin the day following receipt of a written decision or appeal by the parties. C. Failure to Meet Timeliness - Failure at any level of this procedure to communicate the decision on a grievance by the Citywithin the specified time limits shall permit lodging an appeal at the next level of the procedure within the time allotted had the decision been given If the grievance is not processed by the grievant or grievants in accordance with the time limits, the decision last made by the City shall bedeemed final. SECTION 3. PROCEDURE Grievances will be processed following the procedures setforth below. A Level I - Within ten days of the date the employee reasonably knew or should have known of the incident giving rise to the grievance, the employee should make an effort to resolve the grievance informally with the employee's immediate supervisor. The supervisor shall hold discussions and attempt to resolve the grievance within five (5) days. B Level II- In the event such efforts do not produce a mutually satisfactory resolution, the grievant shall have ten (10) calendar days to file a formal written grievance after the employee's immediate supervisor is unable to resolve the grievance through the discussion process. Under no circumstances may a grievance be filed more than twenty-five (25) days from the date the employee knew or should have known of the incident giving rise to the grievance. 1. Procedure for Filinc a Grievance - Infiling a grievance, the employee should set forth the following information: a. The specific section of the departmental or agency rules or regulations allegedly violated, misinterpreted or misapplied b. The specific act or omission which gave rise to the alleged violation, misinterpretation or misapplication. C. The date or dates on which the violation, misinterpretation or misapplication occurred. d. What documents, witnesses or other evidence supports the grievant's position. e. The remedy requested 142 Agreement No. 5442 Level III - If the grievance is not resolved by the immediate supervisor the grievant may present the grievance in writing to the department head within five (5) days. The department head will respond in writing within ten (10) days —Ltve�41F, €tie gFievanea s na •fin,, head, +he yeya�_ eT}`ay pfeseFtH Y1 ieac� ;A W. K 10 1h8 Gity AIS MttI1T �t1e Y'.. ke-gFte ^�..an2geF-w ry anage;a 5ig149�W9 80AdUG1 an iRfGFMal h8a Ifig-@Rd--FeF4eF-nel- $S4A- ,.lus ions a...."ridings oftpis heaFi'•riy-ahag4e Rml. O .Level IV - See Article XXI - binding afbitraliy0 SECTION 4. MATTERS EXCLUDED FROM THE GRIEVANCE PROCEDURE A. The grievance procedure is not intended to be used for the purpose of resolving complaints, requests or changes in wages, hours or working conditions Formatted: Space Before: 0.05 pt Formatted: Font: 10 pt Formatted: Font: 10 pt Formatted: Body Text, Right: 0.18", Line spacing: Multiple 1.04 li, Tab stops: 1.05", Left B The procedure is not intended to be used to challenge the content of employee evaluations or performance reviews N 18 Formatted: Centered, Indent: Left: 3.1", RighY. 3.03", C The procedure is not intended to be usedto challenge the merits of a reclassification, Space Before: 6.5 pt lay-off, transfer, denial of reinstatement, or denial of a step or merit increase D The procedure is not intended to be used in cases of reduction in pay, demotion, suspensions or a termination, but is subject to the formal appeal process as outlined in Ordinance 586. SECTION 5. CONFERENCES Grievants and City representatives, upon request, shall have the rightto a conference at any level of the grievance procedure. SECTION 6. EMPLOYEE APPEALS FROM DISCIPLINARY ACTION A. Any permanent employee in the Classified Service who has been suspended, for a period of six (6) days or more, demoted, dismissed, or reduced in pay shall have a period often (10) days following written notification in which to file an appeal or answerthe charges B The employee shall forthwith be given in said written notification a statement of the extent and nature of any disciplinary action and a full explanation ofthe reasons for the action including specific information as to time and place of incidents C Each disciplinary action shall automatically be given administrative review by the City Manager, immediately after the written notification, and the City Manager may countermand the disciplinary action or modify the discipline imposed prior to any hearing as hereinafter provided D Appeals and requests for hearings shall be filed with the City Manager, and then immediately referred to the Los Angeles County Civil Service Commission or City Council, as the case may be E. The Commission shall have the right to refuse to hold a hearing in any case in which the appellant fails to present sufficient grounds to warrant a hearing. F. Procedures for all hearings to beZanducted by the Count shall be in accordance with the Rules ofthe Los Angeles County Civil Service Commission. F G. Alternatively, emoldyees may ainPeal discipline to bindino arbitration qursuanl to Article XXI 143 Agreement No. 5442 ARTICLE XV -LAYOFF SECTION 1. Grounds for Layoff - Whenever, in the judgmentof the City Council, it beoomes necessary to reduce the workforce because of a lack of funds, lack of work or reorganization, an employee may be laid off, reduced in classification or displaced by another employee. Such layoff, reduction or displacement shall result from action of the City Manager or his designee Such action shall not entitle the laid off, reduced or displaced employee to a right of appeal. The City Manager shall recommend to the City Council each classification to be affected by any such change SECTION 2. Notice to Employees An employee filling a full-time position shall be given fourteen (14) Calendar day's prior notice of layoff Employees transferred, reduced or displaced shall be given five (5) calendar days' notice. The City Council may approve a reduction in the notice requirements, if so recommended by the City Manager. SECTION 3. At -Will Emplovees • The City Manager retains the right to layoff or alter the work assignment of the following employees at any time without notice or right of appeal: emergency employees, temporary or seasonal employees, part-time employees, original probationary employees, promotional probationary employees and employees designated as at -will. The promotional probationary employee shall revert to his/her previously held classification and position without loss of seniority SECTION 4. Procedures for La yoff_- A permanent employee in a classification effected by a reduction in force shall be laid off based on seniority in City service; that is the employee with the least City service shall be laid off first, followed by the employee with the second least City service, etc. Seniority shall be determined by hire date SECTION 5. Breaking Ties_- Provided that seniority, hiring date is equal retention points for job performance shall be credited on the basis ofthe average of the overall evaluation ratings forthe last three (3) years in a classification, provided the last rating had been filed at least thirty (30) days prior to the date ofthe layoff notice. Retention points are as follows: 1 "Unsatisfactory" rating 0 retention points. 2. "Improvement needed" rating 6 retention points. 3. "Satisfactory" rating 12 retention points. 4. "Exceeds expectations" rating 18 retention points. 5. "Outstanding" rating 24 retention points. SECTION 6 Reduction to a Vacant Position - An employee designated for layoff as a result of abolition of a position or classification may be offered appointment to a vacant position in a lower classification, ifthe employee is qualified by education and/or experience for such position. Ifthere is more than one qualified employee eligible to be offered such appointment(s), the offer(s) shall be based on seniority, with the employee with the highest seniority offered the position first, then the next highest, etc. If the employees have the same seniority, then the procedure for breaking ties set forth above shall apply. An employee accepting such appointment shall be placed on the step for the lower classification most closely corresponding, but in no case higher, than to the salary step of his/her previously held position, and the employee will be assigned a new salary anniversary date on the effective date of the appointment. SECTION 7 displacement Rights - An employee designated for layoff as a result of abolition of a position or classification may displace (bump) an employee in a lower classification, if the employee previously held permanent status in such classification. An employee who is bumped shall be laid off in the same manner as an employee whose position or classification is abolished. SECTION 8. Salary Placement -An employee who is assigned to a lower classification as a result of a displacement (bump) shall receive the compensation reflected by the step of the salary range of the new classification closest to the compensation of the employee in the previous classification, and the employee will also be assigned a new salary anniversary date on the effective date of the Formatted: Normal, Left, Indent: Left: 0", Tab stops: 2.87", Left Formatted: Left: 1.17", Right: 0.96", Bottom: 1.19" 144 appointment. An employee accepting such appointment shall be placed ol`Wg%%$nhRejjfi, classification most closely corresponding, but in no case higher, than the salary step of his/her previously held position, and the employee will be assigned a new salary anniversary date on the effective date of the appointment. The employee shall, however, retain seniority while his/her name remains on a reemployment list or lists, as set forth in subsection 9. 20 Formatted: Left 23 145 146 Agreement No. 5442 SECTION 9. Reemployment List - The names of permanent employees who have been laid off underthis section (including employees who bumped down) shall be placed, in order of seniority from highest to lowest, on a reemployment list for their classification or any lower classification for which the employee is qualified by education and/or experience. Persons on such lists shall retain eligibility for appointment there from for a period for three years from the date their names were placed on the list As a vacancy within a classification ora lower related classification becomes available, the name appearing at the top for the list shall be offered the opportunity to fill the vacancy. The name of an individual selected from the list to fill the vacancy who refuses the re-employment offer shall be permanently removed from the re-employment listwithout right of appeal Laid -off employees do not earn seniority credit or benefits while on the re-employment list. SECTION 10 (tights upon Reemployment - If a person is reemployed by the City within three years, the employee's accumulated sick leave allowance, seniority and vacation accrual shall be reinstated Employees should be placed on the same salary step previously held upon reemployment. ARTICLE XVI - MISCELLANEOUS SECTION 1 Credit Union - Employees are eligible tojoin the South Bay Credit Union SECTION 2. Temporary Assignment to HigherClassificaficn - Where an employee is qualified for and is required for an appreciable period of time to serve temporarily in and have the responsibility for work in a higher class or position, when approved by the City Manager, such employee, while so assigned, shall receive the entrance salary rate of that class or whatever step thereof that is not less than five percent above his or her present rate, whichever is higher For the purpose of this section, "appreciable period of time" is defined as ten consecutive working days (eight working days if on four/ten plan) or longer SECTION 3. Rest Periods - All bargaining unit employees shall be provided a fifteen (15) minute rest -break near the mid -point of every four hours of scheduled work In order to ensure that such affected employees are prepared to reconvene performance oftheir duties precisely atthe conclusion of the fifteen (15) minute rest -break, such employees are encouraged to take their break within the building where they are regularly assigned or on the grounds immediately adjacent to the work assignment. As it concerns lunch breaks, all affected employees are scheduled for either a thirty (30) or sixty (60) minute lunch break depending upon the work assignment Said scheduling shall be in accord with pre-existing City practices and procedures. Failure by an employee to utilize a rest or lunch break shall not result in any accumulation or other "banking" of said unused time; nor shall failure to utilize said rest or lunch break time result in conclusion of the employees regularly scheduled work shift at a time earlier than scheduled nor shall any unused break time be utilized to extend a lunch break However, in any instance where management mandates that a rest or lunch break not be taken because of the need to provide services to the City, then said additional work time shall be compensated in accord with this MOU, City Rules and Regulations and applicable statutory requirements. Additionally, in said circumstances, management does have the discretion to allow for early termination of an employee's regularly scheduled work hours in amounts of time equivalent to the missed breaks. 21 147 Agreement No. SECTION 4. Reauest for Reclas si fica lion Review A Basis for reauest - A bargaining unit employee or UnianAssociation may make a request for reclassification once every two years, if an employee's job duties and responsibilities have become significantly different over the two-year period. B. Processioci of_re-wosl The request for reclassification review must be submitted by the employee or the UnmeAAssociation to the employee's immediate supervisor. The employee's supervisor shall submit a written recommendation to the employee's Department Head concerning the merits of the reclassification review request. If the Department Head determines that the employee's job duties and responsibilities have significantly changed, the Director of Human Resources will initiate the reclassification review process. Human Resources Department staffwill have the responsibility to conduct the reclassification review process. However, ifthe 1- Jno;Associaflon and the City mutually agree, a consultant may be utilized at any step of the reclassification review process. The cost of the agreed upon Consultant will be paid by the City C. Com vents of reclassification review 1 The employee requesting the reclassification review will provide information summarizing the scope and complexity of the duties and responsibilities of the position. 2 The employee requesting the reclassification review will be interviewed and observed at work to assess the validity of the information provided by the employee and to develop a full understanding of the job duties and responsibilities. 3. A salary survey will be performed comparing the employee's position with similar positions in the Cities of Culver City, Gardena, Hawthorne, Hermosa Beach, Inglewood, Los Angeles, Manhattan Beach, Redondo Beach, Santa Monica, Torrance, and the County of Los Angeles For purposes of the salary survey, the mid -point of the City's current pay schedule will be compared to the midpoints ofthe surveyed public entities for positions with similar education and/or experience requirements. Variances of+/- 5% will be considered comparable to the prevailing rate. D. Action by the Director of Human Resources_- The completed reclassification survey and a draft job description shall be reviewed by the employee's supervisor and the Director of Human Resources. The Director shall then meet and confer with the UniaaAssociation on the results of the reclassification review The Director shall then make his or her recommendation to the City Manager The Director shall recommend to the City Manager the approval of any reclassification request that reflects a substantial change in the duties and responsibilities ofthe position. Action by the City Council - All reclassifications must be approved by the City Council F. Effective date of reclassification Any approved reclassification shall become effective the pay period following approval. G. Challenge to daoisiongn reclassification request - The 4RIanASsoaakr, may challenge the denial of the reclassification request by the Director of Human Resources, the City Manager or the City Council. Any challenge to the denial ofthe reclassification request will be governed by this section and not by Article XVI, Grievance Procedure. Ifa challenge is made, a new classification review will be completed by a neutral entity selected by mutual agreement of the l: inl@nASSOCiatloll. and the City. The parties 22 148 Agreement No. 544 agree to accept the conclusions reached by the neutral entity. The cost of the consultant's services will be shared equally by the WwaRAssodatrcn and the City SECTION 5 Senronty__- For the purpose of this Memorandum of Understanding, seniority shall be defined as a bargaining unit member's total, continuous employment in a position in the City's classified service. Total, continuous employment is that which is uninterrupted by separation and includes 1) actual timeworked, 2) authorized leave of absence, both paid and unpaid, 3) family leave, 4) military leave and 5) industrial injury or illness leave. For purposes of this section, a leave of absence without pay is limited to a maximum of 90 continuous days. SECTION 6. Standby Duty -.Standby Duty is the time that employees, who have been released from duty, are specifically required by their supervisor to be available for return to duty when required by the City During Standby Duty, employees are not required to remain at their City work station or any other specified location. Standby Duty employees are free to engage in personal business or activities. However, standby duty requires that employees: 1. Be ready to respond immediately. 2. Be reachable by paging device or telephone The City may, in its discretion, provide a paging device (e.g., a beeper) to an assigned Standby Duty employee. 3. Be able to report to work within one (1) hour of notification. 4. Refrain from activities which might impairtheir ability to perform assigned duties. This includes, but is not limited to, abstaining from the consumption of any alcoholic beverage and the use of any illegal drug or incapacitating medication 5. Respond to any call back during the ae43igfled— standby period As with any City equipment, any paging device assigned to an employee is the responsibility of the standby employee during the standby assignment. The employee is liable for loss or damage to the paging device which is caused by the employee's negligence or intentional acts. Failure of an employee to comply with the provisions of standby duty may subject the employee to discipline, up to and including termination of employment with the City For each period of standby duty, employees shall be provided the choice of two (2) hours of compensatory time off ortwo (2) hours of paid time A period of standby duty shall be defined as one (1) day, commencing at 0001 and ending at 2400 An employee who uses sick leave or vacation leave during a standby period, occurring on or after September 9, 2000, shall not be provided any form of compensation for the standby period, unless the employee's department head approves, inwriting, the provision ofthe normal standby period compensation. SECTION 7. Jury Duty - Employees shall be entitled to a leave of absence forjury duty subject to compliance with all of the following conditions: A _The employee must provide written noticeofthe expected jury dutyto his or her supervisor as soon as possible, but in no case later than 14calendar days before the beginning of the jury duty 23 149 Agreement No. B During the first two weeks ofjury duty, an employee shall be entitled to receive his or her regular compensation. C For any portion of jury duty that extends beyond the first two weeks, such extended jury duty period shall be without regular pay D. Any compensation for the first two weeks of jury duty, except travel reimbursement pay, must be deposited with the Director of Human Resources E While on jury duty, the employee must report to work during any portion of a day that the employee is relieved of jury duty for three or more consecutive hours. Employees relieved of jury duty for three or more consecutive hours may use accrued leave to take the rest of the day off, provided they have secured prior supervisory approval F. The employee must provide documentation of his or herdaily attendance on jury duty. G. However, notwithstanding Section C above, employees may access accrued vacation leave, sick leave and compensatory time, if jury duty extends beyond two weeks. SECTION 8. Cell Phone Stipend - Employees in classifications which are currently issued a cell phone may elect not to be issued cell phones and instead receive an eighty dollar ($80) monthly stipend to offset the cost of utilizing their personal devices for work related purposes. Non-exempt employees shall not use their personal cell phonesto perform anywork on behalfofthe City outside of normal working hours without prior supervisory approval Employees who electthis option shall make their personal cell phones and cell phone records available for inspection by the City on the same terms and conditions as employees who are issued City cell phones. SECTION 9. Assignment of Work Schedule Effective the first day of the first pay period in January 2018, employees of this bargaining unit shall operate on a 9,480 work schedule Employees shall typically be assigned a Monday through Friday 9/480 schedule. The City and SPEA membership agree that the membership may be split into "A", aad "B", and 'C' shift -teams by their respective Department heads, such that "A" and "B" ship tears+& work opposite Fridays and have opposite Fridays off, whereas 'C- shift works Monday through Friday 4140 schedule: Due to operational needs, the City may assign employees tlt-to operate a different 9/80 schedule if the change is intended to be permanent and the exercise of such right is not arbitrary, capricious, retaliatory, or discriminatory The City shall provide SPEA and the employee with 30 days' notice prior to the implementation of any change in the designated workweek Such notification shall provide a description of the operational need for the proposed change The City shall not change an employee to any other schedule5140fveg" or 41? 0feufAeA) without mutual written agreement by (1) the employee, (2) his or her Department Head, and (3) the SPEA Omer Association Board. ar=CTION 10 New i11c l oliiicali�n The Cay shalt nQbf,X the AsSoci alien of all new hires in posiion5 rn Uus bgrrgainino unit 15-� apRendix No. ?l within 10 workina days ARTICLE XVII - DRUG-FREE WORKPLACE STATEMENT AND SUBSTANCE ABUSE POLICY SMOKING POLICY AND BREAK POLICY The parties have met and conferred in good faith regarding the adoption of a revised drug-free workplace statement and substance abuse policy dated July 1, 2008, as well as a non-smoking policy and break policy and the same shall be implemented concurrent with adoption ofthis MOU. Commented [SPS]: Reference the 5/80 team C. Formatted: Highlight Formatted: Highlight I Formatted: Highlight 150 Agreement No. 6442 1 24 25 151 152 Agreement No. 54421 ARTICLE XVIII - PERSONNEL FILE SECTION 1. The official personnel file of each employee shall be maintained in the Human Resources Department. A unit member and/pr a4aianAssociation representative authorized bythe member, in writing, may review or obtain copies of material from the employee's file with the exception of material that includes ratings, reports or records which are obtained prior to the employment of the employee involved. SECTION 2. Employees shall be provided any copies of derogatory material placed in their official file. Employees will be requested to acknowledge they received any derogatory material prior to it being placed in their personnel file SECTION 3 All customer or citizen letters of a positive nature and/or any City commendations, letters of achievements and recognition will be placed inthe employee's personnel file. Article XIX—ASSOCIATION DEDUCTIONS Upon notification by the Association, the City shall deduct Association dues from the pay of e_mnlovees represented -by the Association as required by law. Amounts to be deducted_ shall be certified to the City by the appropriate Association official Any collected authorized payroll deductions shall be transmitted to the appropriate desi nated a The Assvciationagrees to defend• indemnify and hold harmless the City from any claire $ui;or liabi_l ty of any nature arising From the operation of this prgvision. including, but not limited to: fa] a Challenge to the valid ity of this SeCtlon' c b) any action of the Association taken pursuant to, or in violation of- thisSeotion. The rsiaar;=-•::il : will give the,ldraia:aAssogiation prompt written notice of any claim s it or liability which it con ends is sub ect to this provislom Jt Is also agreed that neither any employe nor the Association shall have any 0aim for error against the Cily for any -deductions made or n t made, as the case may be., ARTtCLta XIX—AGENGY-H•0-R-4GR 3y1€N� keaiNal+ve-Autt the Gity of CI Se mile (Giti\ and G 1if9FR;a Teale steps I . al 911 (I I..ieR) Mowlaifj� FAeF�.,. Rd--an4agpae-that i ,�anGe�➢`7. i ie Gi Gal 1f FN a low, or ad op! an of S9 7.3 an d iRslass+fin en•e� he err rx�vafed ta•becaveFEd�ay an Ageasy Shop -agree FpeR As a Fesult ..r��y-$14o" ian. as a .,hies Of ccntiaued--eA4M"me , !his AgenGy c� ap agFe2itaeREherel3y regtrises tkaat-a4l-bargai nn;a-u.;:temT a Elee4SojGH: •ttv"P6 a^. and pay -does " orPay 2R ga,ey-foo-�...`^r— PFesentatienj a 0-Jith-a-Pe4ieuc-exe"+ea. to as dopated4e, �law3wf]iaesiA�e+�y-Fee�aEtesiien t=ffeMiVe la^ ,`+non the rn,._aue 09pa I . .;dues �,r$�DF36 examp^� 4-e :falm}ees Wha have -signed a n•-authe iaalior� nd a copy of -Haat aw 1N a; 2atiGp--ftas b ee q proms ded-ta44e-F-m a 0epaAmesl FFnpleye es as lea e-wit4Gut--pay F y�Y� �Flaa%al aFy le�5 ah rl.a . n g� A dURS 0r ageAGY ((6e dedtl6(en s.�, ,_ thtial p y -ped 6 25 Formatted: Indent: Left: 1.09", First line: 0.41" Formatted: HighGg ht Commented [SP61: ?? Correction language. Formatted: Highlight 153 Agreement No. 6442 Thal In'^^ Shai1,�,,,�r ^.,lpyl#e-E;Pt 6f ar+y gene. a -wha eleets •a-estly pay-taiF-sbare#ees-44a4ee e H31-�O-dif4S F8 1A068NiafiflFF 75i5-�6 elE'FPAiR�''r bYlha r A;••,-••SF . ..,a 4e r r..mil sha{l-r{o[i ksE-�it;+�f t#e arg. ^ate t ofth^ fa!F s h usr��ustEYJ4mfrf4he fa iF s ar&lee- payeF3 paysheek. -he �,e.r^ s t the ues a ounFpufwaf:4 to-ire-lfteraat+aea+-Wethw head of �:^^,,„sWs+B ) WROansa-a#l-a#eEte�i-er playee5-aaG-t#e-pity-iFt#e-arnectntiviN-sk�aAge` New -;-lire No4ifisatian {86ii4E�-c+aH 3P�-�$i'lA all .. hiFeS lA;`�` s o��l-baFq ji�iFk"i;4-6#ia+{--$e-iRfwmad l), fnaR ,,�. . 16�.. a..f l,f�n �h�La.s_❑ �•' �� : +eRF-Ns in effect f theyF GlaSSatiOF4 TON employee ha" ice' zW5-agreer eM,4h"emBraFn of WR FStanding-aAd-a 154 Agreement No. 544 feFiil--T�f'tife#I...deve ieped bsti„aaA4he- :bLsAd4#e- s;iGn That o Flu., s the �..,��H816i�66tiFIL�BF t-#LeAQaRsYb#aep agrraR�aP!, T#eswflGyee s#a"a-pfa a0arr d to tlWfe— @Ielest theirshehe A4-pWlde-2-Si9ne.a of ORat na �6 ai;nea�ti l�L o 110 0R.may4-Ro , F.vsvre et a4ime-aP4-pk�ulually ad-vpoo4?eUyeeA44e 9epan4ne+it--4�he-i Aoi*- JFe,=g $13Fil+I"n_empleyiai! to Rke-3nE#e6fii9Fh2l�e-1'`e r�.�-�.;y a sig 140p ef# pOyee leG4GR fGFM, the UAIOAth9Tr."WYae-b---tiaA4Mai94*GFP empleyrivA"eF-fa4UFe Ia-tO FAIke 8R ._ nn ^7TSW4A4'laysn0a-3 hTn.�-ri',��".r:.l+e haF�alfilR§HFlit•; :;:k0-�i�y-6(:1811-PF3tl�-die-�}RIOR-0�-a±i-RB••+rin$$rprv'r"v1Rf9R-�8-Ef�F�19jIB�8 R8+77e- ass;4cxatF7F�31-d3�e-8f-l4ifi �.8ilfilC-N�6-�HBFi1F7tIOR An e-ley__,,r x, --� �R e��h.,.,a-fide FOOIGR. body ^t-kras h ste sa!#y he! WAGGientia ss jest9sigs-4 d-,; SUp"N Rion ekla4"Gt be-Fegd+Fed, as a GG"tK9S-g€ BFflp'^��raR'. "� F� h-Y^� a'Rd f�aY aF3#eR r ies aroma FeffeseRtation. Aar-emoeyes-siaiFping Feligiaus exeFr�p,leF�sa s shalt-he-rt�pl i to-}�Favcde l�tkaa Nglr aoiof afal.alrel,Vo+-r,rt. IR4ieu-4-uA w,"es sFager,a 1 Eh K -tae 6Mke pay -a-1L $�y t¢[ RG• cel^": �ahBf:-fl9:a-F$lF�{BiIS-E' kBRi Ie$fQa R{2�t39FT- Re66Fds 9 A GA n al r.ms, « the { tA-R.$$F7i'1F6$S-�ifBCvtOF W}t iE1 GfYpy-Ae-th@-�iflffjP=`3 GO ttfi$d fiRaFa6i•�', A The City shall py do theand-vdues -PaY}Ag a stat+as-with er—" anion-Sues-cheek4emitted-to4he-UnieR- R$66i6�f MFE_SeMRRI The A FB8Ra8Rt ^ he a 'wo air 'R iF1e f�HFE t l of t e4Aemo • Adum-Uf moi'-��'a8 � Y� a9 WRdeF6j8^Ai.. h i 1 eec s the baFg o�� A .+�n1 W SUG ..rOt �r�mg-�v-n�vf ey�-wc'e�e��rory v�-c�--.>�gv .�--irrsrr.�-r-rul FAust be se rn. elad bbyapetj..,�.5�1�iHIP�-tEiB--51 jR3�� r L_o.�- s -a. --l. le��f�i} }`'g9Fee t--(aQ%) of-lh9 emplGyees-In thrum, nt Thelerl:n pals I+•+rx�vivt4, aIIo -.�wA r.. d by !`nll ie`-SWte lV1BFN"la'1 "'t1BR-3i}f:-c�rBRGI{Iat BRd4R-26FieF�aRG6-W44-G;GW ay/- 7�� iA ffieat#en The IThe I 1 .. s .iA.. i:.{I 14ro !"!., li air-pF+i;n,��-PrFrotesHoR�-t.,�--o.:may-�RdeFRr++#�ri�rg-defeRdiag-aFld-ha#rFy halensi'� arra^a ap Fesu of-ifpplemecltiRg-at}d + aiRtaiFtiRg INC, aQFeemeRt. 26 27 155 Agreement No. 5442 ARTICLE XX - CATASTROPHIC LEAVE BANK Pursuant to the meet -and -confer process for 1997-98, it was agreed upon that effective July 1, 1997, or as soon thereafter as is possible, the City shall establish a Catastrophic Leave Bank for represented employees as follows: €. PURPOSE To establish a program whereby City employees may donate accumulated time to a catastrophic sick leave bank to be used by permanent, part-time and full-time employees who are incapacitated due to a catastrophic illness or injury 2. DEFINITION A catastrophic illness or injury is a chronic or long-term health condition that is incurable or so serious that, if not treated, it would likely result in a long period of incapacity 3. PROCEDURES A There is established ajoint-employer/employee committee composed of an individual from each recognized employee organization and a representative of City Administration charged with administering the Catastrophic Leave Bank. B Employees may transfer sick leave, vacation or compensatory leave to the Catastrophic Leave Bank to be donated to an employee who is experiencing catastrophic illness and has exhausted all personal sick leave Such a transfer can be made on July 1 of each year on forms provided by the City of EI Segundo The employee to receive the donation will sign the "Request to Receive Donation" form allowing publication and distribution of information regarding his/her situation. C. Sick leave, vacation and compensatory time leave donations will be made in increments of no less than one day. These will be hour for hour donations. D Employees must hold a minimum of one hundred (100) hours of accumulated illness/injury leave after a donation has been made E The donation of time is irrevocable. Should the recipient employee not use all of the donated time for the catastrophic illness or injury, any balance will remain in the Catastrophic Leave Bank to be administered by the committee and utilized for the next catastrophic leave situation. 156 Agreement No. 6442 ARTICLE XXI— BINDING ARBITRATION A. Civil Claims: Both the City and individt Understanding aerce that the cl determined exclusively by bin conl'ormily with the procedure Civ. Prop. Sec 1280 et. seq, i in this the rip ,hi of demurrer . all rules and judgment unde 631.8 shall a iv rind be observed, Resolution of thi the law eoverning the claims and derenses pleaded. The civil claims which are subject to final an navarent laws. breach of iarivacv claims. intentional or ne2lieent inlliction dr rederaI anti -discrimination laws. including but not Iiinited to the California Fa Employment and Housing Act. Title V11 ol'the Civil Rights Act of 1964 the At Discrimination in Employment Act. the Ainer'icans wifli Disabilities Act. and lh Faniil • and Medical Leave Act. and claims for discrimination and harassment i i employment pa the basis of race. age, sex religion, national ori in. aliens religion. marital status. sexual orientation. disability. political activity, or an otter statutorily -protected basis. it shall also inciude any and all claims a or rules and reLulations set Forth herein. 27 157 Agreement No. 5442 agencies. and administrative charges with the Equal Employment Opportunity Commission. Cnlifornia Department of Fair Emplovmenl and Housing. California Department of Labor Standards Enforcement U.S. Department of Labor and any similar slate or federal agency. Unless otherwise required by applicable Imy, all other ernMovment-related claims shall be resolved by Final and binding arbitration and not by a lure in a court of law. 3. To the. fullest extent permitted by law, employees covered by this Men>orandum of Undirstandine aerce that lirev shall not ioin or consolidate ciainrs_sub_mited for arbitration pursuant to this Article with those of any other persons. and that no fonn of class, collective, or representative action shall be maintained without the mutual consent of the parties. Any disnutc over the validity. effect, or enforceability of the provisions of this paragraph. including whether the arbitration may proceed as class. collective. or representative action. shad be I'or a court of law and not an arbitrator to decide. The Citv shall bear the costs of anv arbitration condtic led puriuent to this Article. including the compensation of the Arbitrator. aII administrative expenses, and CSR transcripts. Except as may otherwise be required by law. the parties shall be responsible for their own attorneys' fees and costs incurred in presenting their case to the Arbitrator. The Arbitrator shall render a written award within 30 days after the matter is submitted for determination. and the award of the arbitrator shall be final and binding on the City, ind the e_mplm,ee. 5. The arbitration shall be held before a single arbitrator, who shall be an attorney at law and an experienced employment law arbitrator. The arbitrator shall he rnutualty sclected by the parties. 'rite Arbitrator shall have the power to award all iegai rel icfavailable in a court of law, including any and tall darnae" that may be available For any orthe claims asserted. In addition, each of Ilie Rartics shall retain all defenses that thev would have in a judicial proceeding_ including defenses based on the expiration of the statute orIiinitations and that the damages being sought are not authorized or are excessive;. B. Appeal of Discipline The Parties understand that emnlovees covered by this Memorandum of Understandin are entitled to disciplinary ar)peaf procedures under the City's Personnel Merit System Administrative Code. Under Administrative Code Section 1-6-8. entployees have the rieht to have the Las .Angeles County Civil Service Commission hear appeals from dismissal. demotion and sus rasions fora ocriod of six 6 days or longer. The Paarties agree that an empiovee covered by this Memorandum ofUnderstalid ing il>_a_opt to have these disciplinary actions be submitted to bindine and final arbitration. Me arbitration shall be held before a sinele arbitrator. who shall be an experienced labor and employment lays arbitrator. The parties shall select an arbitrator from a list of severs arbilrators provided by the Slate Mediation and Conciliation Service_ If the parties are unable to reach an agreement in the selection of a hearin officer, each shall strike names from the list until a Final name is selected as the Arbitrator. 158 Agreement No. 55442 their own attornevs' foes and costs incurred in presenfinp their rase to th Arbitrator. Article. shall he I'or a court of lav and not an arbitrator to decide. Under this Section B. tite Arbitrator's authority will tv limited t voithia tite Arbitrator may not increase the level of discipline. to introduce during its case -in -chief. C. Contract fntc rotation Disputes The Parties agree chat anv grievance riled undo Tile Association inusl file a written reg uest for finai aitd bi n d i ng arbitration within ten l days orrece'tnt of the Citv's response at Leve l_III. itrator. The parties shall select Conciliation Service. If the parties are unable to reach an a rcemeni in tlt- selection of a hearing officer. each shall strike names from the list until a finill name is selected as the Arbitrator. is Arbitrator. Anv dispute over the validity. effect. or enforceability of thc_provisi Article C. shall be for a court of law and not an arbitrator to decide. cm nlovec. The Arbitrator 27 no authority to 159 Agreement No. 5442 5. At least fen business days before the scheduled arbitration. tate parties shall exchart a the f'ollawin g inforntation: f i a list of all witnesses each party iate n s to cal! durine its case- in•chief: and (ii) copies _af all_documenIs each party intends to introduce during its case -in -chief. D. This Article XX1 w—ic1 is cnccred into under the Cal itornia Arbitration Act and the Mevers-MiIias-Chown Act. and shall be interpreted and construed in accordanec with the law and procedures developed under those respective statul_e_s. ARTICLE XXII Reopener: of Municipal Code that covers Personnel Merit System: B. Parties agree to reopener regarding emofovee evaluation process, orocedure, forms, and evaluation criteria-; C. Parties agree that any and all than es orovosed pursuant to this rep ener provision can o I - be implemented by mutual agreement of the oarties. For the Association: For the City of El Segundo: Paul Samaras. President Scott Mitnick, City Manager Eduardo Schonborn David Serrano Director of Human Resources Maria Cerritos Lauren Daniels, Human Resources Manager Evanette Gettler Dana Hang, Sr. Human Resources Analyst Emma Johnson Leslie D. Cam bel! Human Resourc s Analst Date: Date: Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: A, B, C, _. + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Indent at: 0.5" Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: A, B, C, — + Start at: 1 + Alignment: Left + Aligned at: 0.25' + Indent at: 0.5" 160 Agreement No. 5442 27 161 Agreement No. 5442- FGFthe WROGW For 1 ty of i Segundo: Formatted: Font: (Default) Arial, 10 pt Neil'Sholander, Tearnster's Representative Greg Pente City Manager ,.�kd-Mernber .... rNqVwl.kAivq. -- - ---------------------------------- -- Joseph. LitVo,. Fine . . ... .............. �Formatted: Font: (Default) Arial, 10 pt 'z4v--,w Board Member A4k-JIOY--L MLOj-v;1)6L-- Lynn �n erq, Human Resources . ... ......... . . .... .. .... . ......... W-1 o �� -------------------------------- - - ---------- ............. ... ............. Formatted: Font: (Default) Arial, 10 pt Date .......... Date-- ....................... ........ - - ........ ... . . . ... ........ ......................... Representative) - Pawl SaFRaFaS P4AFOQ GAFFOtQF; Fmma jehR69R 28 162 Agreement No. 27 163 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA STATEMENT AGENDA HEADING: Public Hearing AGENDA DESCRIPTION: Consideration and possible action regarding introduction of an ordinance (Zone Text Amendment No. ZTA 19-07) and approval of Environmental Assessment No. EA -1253 to reduce the required setbacks and encroachments in the Corporate Office (CO) Zone and the Urban Mixed Use North (MU -N) Zone. Pursuant to the provisions of the California Environmental Quality Act, the proposed zone text amendment is exempt from further review (CEQA Guidelines § 15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. Address: All properties within the Corporate Office (CO) and Urban Mixed -Use North (MU -N) Zones in El Segundo (Fiscal Impact: None with this action.) RECOMMENDED COUNCIL ACTION: 1. Conduct a public hearing; 2. Take testimony and other evidence as presented; 3. Introduce by title only and waive further reading of an Ordinance amending the Corporate Office and Urban Mixed -Used North sections of the El Segundo Municipal Code; 4. Schedule second reading and adoption of the Ordinance for September 3, 2019; and/or, 5. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Proposed Ordinance No. 2. Planning Commission Resolution No. 2864 3. Planning Commission Staff Report, dated July 25, 2019 (without attachments) FISCAL IMPACT: None. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A STRATEGIC PLAN: Goal: Champion economic development and fiscal sustainability. Objective: Encourage a vibrant business climate that is accessible, user-friendly and welcoming to all residents and visitors. PREPARED BY: Eduardo Schonborn, AICP, Principal Planner' REVIEWED BY: Gregg McClain, Planning Manager 6w, 7 Sam Lee, Planning and Building Safety Directo APPROVED BY: Scott Mitnick, City Manager e5� 6.'sm 164 INTRODUCTION/ BACKGROUND The proposed project includes amending three sections of the El Segundo Municipal Code ("ESMC"). On July 25, 2019, the Planning Commission conducted a public hearing to consider amendments to the Zoning Code related to encroachments and setbacks on certain properties within the City, specifically with regards to setback encroachments, reduction to the setback requirements for properties in the Urban Mixed -Use North (MU -N) Zone, and reduction to the setback requirements for properties in the Corporate Office (CO) Zone. After discussing the proposed amendments, the Planning Commission on a 4-0 vote (Chair Baldino absent) adopted Resolution No. 2864 (attached) recommending that the City Council approve the zone text amendment. Since the project includes amending the ESMC, the City Council is the final decision- making body. Therefore, it is now before the City Council for consideration. DISCUSSION There are three sections in the Zoning Code regulations that are proposed to be amended by this application; these are setback encroachments, reduction to the setback requirements for properties in the Urban Mixed -Use North (MU -N) Zone, and reduction to the setback requirements for properties in the Corporate Office (CO) Zone. Setback Encroachments Although minor encroachments have typically been allowed (such as parking spaces, planters and uncovered porches) the lack of allowable significant encroachments severely limit the usable areas of the property, with only insignificant aesthetic benefit to the street. Recently, the City has taken the opportunity to amend the code where appropriate to encourage and facilitate developments that provide sidewalk -adjacent uses that promote pedestrian activity. The intent has been to provide for enhanced building features and amenities, which bring more activity closer to the sidewalk, thereby improving the appearance and feel of the built environment. In 2016 Continental Development Corporation initiated an application to amend the development standards for the Urban Mixed Use South (MU -S) zone specifically to allow outdoor dining/gathering areas and related structures to encroach into setback areas along street frontages. The amendment facilitated the development of the Apollo Landing project on Rosecrans Avenue, which contains outdoor dining areas within the setbacks of the property. The success and benefits of the Apollo Landing project, resulted in a 2018 code amendment that allowed similar encroachments in the M-1 zone. The 2018 amendment has helped with re -purposing buildings, and encroachments are being designed and incorporated into the redevelopment of several large parcels along Alaska Avenue and Utah Avenue. The amendments that facilitated these changes are steps in the right direction for the MU -S and M-1 zones. This proposed amendment would provide property owners within the MU -N and CO zones a similar ability to utilize setback areas for pedestrian and other human -scale activity, rather than limited to landscaping and parking. This can be a catalyst for activating their frontages and enlivening the street, resulting in improved appearance, enhanced amenities for tenants, and a more pedestrian -friendly environment. As such, Staff and the Planning Commission recommend the 2 165 City Council adopt the Ordinance, thereby amending the Zoning Code to allow outdoor dining/gathering areas and related structures to encroach into setback areas along street frontages. Setback Reductions in the CO and MU -N Zones The CO Zone is intended to provide for the development of offices, and principal uses are restricted to a mixture of office and food serving uses with limited retail. The MU -N Zone is to provide areas where a mixture of compatible commercial, office, research and development, retail and hotel uses can locate and develop in a mutually beneficial manner. The development regulations attempt to create adequate open space and a favorable environment for abutting uses. Further, uses are encouraged to provide street level uses which allow for and facilitate pedestrian activity for area workers and visitors. The current setback requirements provide for large setbacks from property lines, creating more than "adequate" open space between buildings, which Staff and the Planning Commission believe should be reduced. This would shift the emphasis from quantity of open space to the quality by facilitating and encouraging pedestrian activity. Additionally, reducing the required setbacks to facilitate pedestrian -oriented designs enhances the mixture of pedestrian -oriented uses. Thus, Staff and the Planning Commission recommend reducing the required front and side setbacks in the CO and MU -N zones as described in the following table. This will bring these zones closer to alignment with the Mixed Use -South (MU -S) zone, to which they are closer in purpose and intensity than a manufacturing zone such as M-1. All other development standards would remain unchanged. TABLE 1 Setbacks in Select Commercial and Manufacturing Zones CO MU -N MU -S M-1 No No Current Proposed Current Proposed changes chang Front 25 20 30 20 20 25 Side -interior 15 10 25 10 10 15 Side -street 25 20 30 20 20 25 Side -residential abutting 100 100 n/a n/a n/a Rear 10 10 5 5 5 10 TYPE OF ACTION (LEGISLATIVE; QUASI-JUDICIAL; OR ADVISORY) Legislative: The recommended action is a proposed ordinance amending the Zoning Code, in an effort to establish policies and rules for future application. In considering such action, the City Council acts in its legislative capacity, and must only find that the proposed Ordinance is consistent with the General Plan and the Zoning Code, as discussed below. Consistency with the El Segundo General Plan ESMC § 15-1-1 (Purpose, Title) states that Title 15 is the primary tool for implementation of the goals, objectives, and policies of the El Segundo General Plan. Accordingly, the City Council must find that the proposed Amendment is consistent with those goals, objectives, and policies. Staff believes that the necessary findings can be made for City Council approval of the proposed 166 amendments to the encroachments and setback requirements. The findings are discussed in the proposed Ordinance. Consistency with the El Segundo Municipal Code Pursuant to ESMC Title 15, Chapter 26 (Amendments), in order to adopt the proposed amendments, the City Council must find that the amendments are necessary to carry out the general purpose of ESMC Title 15. The purpose of this Title (ESMC § 15-1-1) is to serve the public health, safety, and general welfare and to provide economic and social advantages resulting from an orderly planned use of land resources. Staff believes that the necessary findings can be made for City Council approval of the proposed Amendment. The findings are discussed in the proposed Ordinance. ENVIRONMENTAL REVIEW Pursuant to the provisions of the California Environmental Quality Act, the proposed zone text amendment is exempt from further review (CEQA Guidelines §15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. As such, no further environmental analysis is required. CONCLUSION: Planning Staff recommends that the City Council introduce an Ordinance amending the three sections of the El Segundo Municipal Code, and schedule second reading and adoption of the Ordinance for September 3, 2019. 4 167 ORDINANCE NO. AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE CHAPTERS 15-2 (GENERAL PROVISIONS), 15-513 (CORPORATE OFFICE (CO) ZONE), AND 15-5E (URBAN MIXED USE NORTH (MU -N) ZONE) OF TITLE 15 OF THE EL SEGUNDO MUNICIPAL CODE REDUCING THE REQUIRED SETBACKS, ALLOWING CERTAIN ENCROACHMENTS IN THE SETBACKS AND AMENDING THE SITE DEVELOPMENT STANDARDS IN SUCH ZONES. (Environmental Assessment No. 1253 and Zone Text Amendment No. 19-07) The City Council of the city of EI Segundo does ordain as follows: SECTION 1: The Council finds and declares as follows: A. On May 7, 2019, Ben Newman initiated the process to amend Title 15 of the EI Segundo Municipal Code (ESMC) in order to reduce the required setbacks and allow certain encroachments into the setbacks for properties in the Urban Mixed Use North (MU -N) Zone; and, after further consideration and evaluation, Staff augmented the application by including the same for properties in the Corporate Office (CO) Zone; B. The applications were reviewed by the City's Planning and Building Safety Department for, in part, consistency with the General Plan and conformity with the ESMC; C. The City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, of seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"); D. On July 25, 2019, the EI Segundo Planning Commission held a noticed public hearing to receive public testimony and other evidence regarding the application including information provided by city staff; and, adopted Resolution No. 2864 recommending that the City Council approve the proposed amendments; E. On , 2019, the City Council held a public hearing and considered the information provided by City staff and public testimony regarding this Ordinance; and, F. This Ordinance and its findings are made based upon the entire administrative record including testimony and evidence presented to the City Council at its 2019 public hearing and the staff report submitted by the Planning and Building Safety Department. Page 1 168 SECTION 2: General Plan Findings. As required under Government Code § 65454 the proposed Ordinance is consistent with the City's General Plan as follows: A. Goal LU -1: Maintain EI Segundo's "small town" atmosphere, and provide an attractive place to live and work. The amendments will provide greater opportunities in the MU -N and CO zones by allowing building closer to the street and allowing pedestrian -oriented amenities to encroach into setbacks, which serve as convenient and pleasant amenities to workers and visitors and encourages pedestrian activity in the area. Further, these spaces result in gatherings of people in publically visible places in parts of the city that are oftentimes devoid of human activity. B. Objective LU4-4: Provide areas where development has the flexibility to mix uses, in an effort to provide synergistic relationships which have the potential to maximize economic benefit, reduce traffic impacts, and encourage pedestrian environments. Allowing such encroachments expands the potential mix of uses and amenities they offer to workers on site and in close proximity, thereby maximizing economic benefit in the MU -N and CO Zones. Currently there are very few eateries or casual gathering areas within these parts of the City. The amendments will bring buildings closer to the street and allow outdoor gathering areas specifically as amenities for employees and for those who work within walking distances. Since these areas will cater to the workforce that is already present near the sites, there would be a reduction of vehicle trips since workers would drive to other parts of the city less frequently. SECTION 3: Zone Text Amendment Findings. In accordance with ESMC § 15-26-4 and based on the findings set forth in Section 3, the proposed amendments are consistent with the goals, policies, and objectives of the ESMC as follows: A. The amendments are 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. The amendments are consistent with the purpose of the MU -N and CO zones in that they facilitate and promulgate where a mixture of compatible commercial, office, research and development, retail and hotel uses can locate and develop in a mutually beneficial manner. C. The amendments are necessary to facilitate the development process and ensure the orderly establishment of new uses and the development of outdoor amenity areas in the MU -N and CO Zones that are compatible with surrounding properties and the public right-of-way. Page 2 169 SECTION 4: Environmental Assessment. Based on the facts set forth in Section 2, the City Council finds that the zone text amendment is exempt from further review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines § 15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. SECTION 5: ESMC Section 15-2-7 (Open Space Areas and Encroachments) is amended to read as follows (s#iliet"r^„^" is language deleted, and underlined is language added): 15-2-7: OPr N SzPA.GE- REAS AND ENCROACHMENTS: Encroachments are submect to the following provisions in the indicated zones: T44e fG119WiRg nnen nr.aGB and anr-reaGhment nr.-re required fOF iso indi-atedl A. All Zones: "Architectural landscape features" as defined in section 15-1-6 of this title may encroach into setbacks as specified in section 15-2-14 of this chapter. In all zones, every required yard must be open and unobstructed from the ground up, except the following intrusions may project two feet (2' into required yards, provided the required yard cannot be reduced to less than three feet 04 in width: 1. Bay and greenhouse windows, on the first floor in any setback and on the second floor only in the front yard setback,rp ovided that said window isnot wider than eight feet kg' measured in the general direction of the wall of which it is a part; 2. Cornices, corbels, columns, belt courses, sills, eaves or other similar architectural building features as defined in section 15-1-6 of this title. Eaves may project six inches {6"} into any nonconforming side or rear yard which is three feet k34 in width. "6ltteTs, GGFbGle, and dent -ii rt six TRhGv (62) C'9161mnc mai■ PFGjeGt ene foot (!')• 3. Fireplace structures not wider than eight feet {g} measured in the general direction of the wall of which it is a part; 4. Gronrhe, -1i--rr nom.; r Gam_ for safety pF9tontinn around raM- 6-A. r+c. arti cfairc.• 'vim. c+Tcc�--�Trvnvrrvrr�u � � r. � �v��-urrrp�cr.�-u 6 4. Planting boxes or masonry planters not exceeding fortytwe4? inches {424} in height; and 7--.5. Uncovered porches, platforms and landings which do not extend above the floor level of the first floor. In addition, stamFs, Ramps. stairs• and safety g�lardrails leading to said porches., and platforms and landings may encroach further into a required setback but must maintain at least a three-foot {3) distance to a property line. B. Residential Zones: In residential zoning districts: 1. A porte-cochere (open carport) may be placed over a driveway in the front tWeRty feet 1201 ZQ feet of one 04 side yard setback, outside of the front yard setback, or attached to the front twenty feat (244ZO feet of one {4-} dwelling unit closest to the front lot line, provided the structure is not more than one k44 story Page 3 170 in height; is unenclosed on three (3) sides; and is entirely open except for the necessary supporting columns and architectural features. 2. Mechanical equipment, such as pool heaters, water heaters, and —air conditioners. and solar energy system appurtenances not wider than eight feet (84 measured in the general direction of the wall of which it is a part, and adequately soundproofed, may project two feet (2') into required side and rear yards, provided the required yard cannot be reduced to less than three feet 04. 3. Detached arbors, pergolas, or trellises that partially cover a walkway and do not exceed eight feet (94 in overall height, six feet (64 in width, and five feet (54 in length may have a zero (A) setback in the front and street -side yards. However, the structures must comply with the requirements of sections 15-2- 6, "Corner And Alley Clearance", and 15-2-11, "Driveway Visibility", of this chapter. 4. Uncovered porches, platforms and landings which do not exceed t e4ve (1.212 inches in height above finished grade may have a zero (A) setback in non -street fronting side and rear yards. C. Nonresidential Zones. _ZG": In nonresidential zoning districts, mechanical equipment and accessory structures that do not contain occupied space, as defined by the California Building Code adopted by this Code, or that do not contain net floor area, as defined in section 15-1-6 of this title, may be located within a required interior side or rear setback area. 1. Mechanical equipment includes hetA 4in#�, emergency generators; air conditioning and heating units; transformers; solar energy system a pUrtenances: and other equipment that is accessory to the principal permitted use. Mechanical equipment does not include electrical substations. 2. Accessory structures includvoithelif , trash and recycling enclosures; ground -mounted and covered parking solar ene[gy systems; and structures that exclusively house building operating equipment that is accessory to the principal permitted use. 3. Mechanical equipment and non -occupied accessory structures within a required setback are subject to the following requirements: a. The mechanical equipment or accessory structure may not be higher than 18 -feet. b. The mechanical equipment or accessory structure may not be longer than 60 -feet parallel to the line of thepropgrty to which it is situated or Ian er than 35 -percent of the length of such property line to which it is whichever is less. c. The mechanical equipment or accessory structure may not be located within a required interior side or rear setback area if the interior side or rear property line abuts a residentially zoned property or abuts a public street. d. Operation of the mechanical equipment must not exceed the noLs standards for commercial and industrial property as identified in this Code. e. The mechanical equipment or accessory_ structure must be set back from any interior side or rear property line to meet all access, safety. and screening requirements as specified in title 13 of this Code and this title, Page 4 171 including, but not limited to, adequate ingress and egress for public safety employees. D. Nonresidential ZGRiRg; GGnditiens. a. rnechaniGal ,. - ■_ — c Af the — — -Fea+-setbaGk area if the side OF reaF prope-� ■ . _ _ 5. - M--^-h--;Gal- - _ _ S - _ RiGal _ , _ meet - - S _ ~ - D. Urban Mixed Use North (MU -N), Urban Mixed Use South (MU -S), Caroorate Office (CO) and Light Industrial (M-1) Zones: In addition to othe the encroachments RD rmitted in nonresidential zoning districtsramps; generally,+�,rcr na-��trinn -,,,d Telated safety guaFdFa4-s,, patios, decks, and similar outdoor areas used as gathering spaces; and outdoor dining areas, may be located within setback areas as follows: 1. Stairs, pedestrian ramps, and related safety guardrails must maintain at least a three foot (3!) -distance to a lot line. 2. Patios, decks, and similar outdoor areas used as gathering spaces, and outdoor dining areas must be enclosed by walls, fences, and/or hedges. These may be up to t4ree-feet-six42 inches (X6!'3 in height and maintain at least a five foot} distance to a property line. Walls, fences, and/or hedges may exceed thFee feet 2 inches {X69� in height, provided that the portion exceeding t14 — 2 inches {X693 in height is of a transparent or translucent material, subject to the review and approval of the Director Of QlanniRg and Q� g Safety. These areas may be covered by a nonsolid trellis or pergola; or by a retractable awning, large umbrella or other similar nonpermanent cover which provides protection from rain, subject to the approval by the Director--Gf 4anning and i_iilding Safety. Page 5 172 SECTION 6: ESMC §15-5D-7 (Site Development Standards) is amended to read as follows: 15-5D-7: SITE DEVELOPMENT STANDARDS: All uses in the CO Zone shall comply with the development standards contained in this section. A. General Provisions: 1. All uses shall be conducted within a fully enclosed building, except: a. Outdoor restaurants and cafes incidental to the permitted use, provided they comply with the provisions of section 15-2-16 of this title. b. Recreational facilities customarily conducted in the open. 2. Prior to approval of any development project, all criteria of the Transportation Demand Management (TDM) and trip reduction criteria, as provided for in chapter 16 of this title shall be met. 3. Other provisions as required in chapter 2 of this title. B. Lot Area: A minimum of te-n4housar�d410,000) square feet. C. Height: 1. East of Pacific Coast Hi hwa epulveda evar4: No building or structure shall exceed 200 -feet. two hu Rdred f©e 2QQ 2. West of Pacific Coast Highway eda 3-o�: No building or structure shall exceed 45 -feet. fie-ty fihea_feet444 )- 3. If the subject property abuts residentially zoned property, no building or structure shall exceed 40=feet. forty feet (419+ 4. A maximum grade differential of eight feet (8' is permitted on sloping lots. The vertical height which exceeds the maximum grade differential limit is included in measuring the maximum building height. On sloped lots, a segmented grade plane may be applied to different portions of a building. 5. See section 15-2-3 of this title for exceptions to building height. D. Setbacks: 1. Front Yard: Twenty f4e4eet (2-') 20 -feet minimum. 2. Side Yard: Fifteen feet (15'` 10 -feet minimum, unless one of the following conditions exists: a. If the side yard adjoins a dedicated street, a minimum of �0-feet tfie f � shall be provided; b. If the side yard abuts property with a different classification, the side yard setback shall be the average of the two (2-) side yard setbacks, but not less than ten feet ); and, c. If the side yard abuts property zoned for residential uses, a minimum of eee #used 100 -feet 0804 shall be provided, including a twentyfve 25 -foot (25 } landscape buffer. 3. Rear Yard: Ten feet44-03, unless one M of the following conditions exists: Page 6 173 a. If the rear yard adjoins an alley, dedicated street, public right-of-way, or if the primary access is through the rear yard, a minimum of twenty five 20 - feet ¢255-4 shall be provided; b. If the rear yard abuts property with a different classification, the rear yard setback shall be the average of the two {2 -}-rear yard setbacks, but not less than ten feet 044; and c. If the rear yard abuts property zoned for residential uses, a minimum of e44e wed 100 -feet 400} shall be provided, including a twenty c 25 -foot ¢24} landscape buffer. 4. Future Street Right-of-way Lines. if any future street right-of-way line has been established by plan adopted by the city council. such line shall be considered to be the property line for purposes of determining setbacks. 5. Easements. Setbacks from legal easements, other than street right-of-way easements,shall not be required. In addition to the appropriate review and approval by the city. no construction of any structure or improvement is allowed within a legal easement without written authorization from the ie al holder of the easement. Such authorization shall be in a form acceptable to the Director. Other ............. ... ne bI CO Zone 10,000 sf Lot Min. A11ey in CV CO Zone Other.1. -� 1 MIn. Zone Min. 5' m N f13 FrontFront 100'Min. Frontage E. Lot Frontage: Each lot shall have a minimum frontage on a street of ^^e "H +144r -e l 100 -feet {�. F. Building Area: The total net floor area of all buildings shall not exceed the total net square footage of the property multiplied by 0.8 or an FAR of 0.8:1. Additional Page 7 174 a U) FAR may be granted for properties east of Pacific Coast Hiohway Bou-levard only, with approval of a transfer of development rights (TDR) plan. 100' = 10,000 Sf F.A.R. = 0.8 $ Bldg. Area = 8,000 Sf SECTION 7: ESMC § 15-5E-7 (Site Development Standards) is amended to read as follows: 15-5E-7: SITE DEVELOPMENT STANDARDS: All uses within the MU -N Zone shall comply with the development standards contained in this section. A. General Provision: 1. All uses shall be conducted wholly within an enclosed building except: a. Electrical distribution stations. b. Outdoor restaurants and cafes incidental to the permitted use, provided they comply with the provisions of section 15-2-16 of this title. c. Recreational facilities customarily conducted in the open. d. Special uses, to the degree the conditional use permit granting such special uses expressly permits operation in other than a fully enclosed building. 2. Prior to approval of any development project, all criteria of the Transportation Demand Management (TDM) and trip reduction criteria as provided for in chapter 16 of this title shall be met. 3. Other provisions as required in chapter 2 of this title. B. Lot Area: A minimum lot area of teR thG 1sand X10,000} square feet. C. Height: Page 8 175 1. Buildings and structures shall not exceed a height of ^fired -seven+ 175 -feet}. 2. A maximum grade differential of eight feet {3'} is permitted on sloping lots. The vertical height which exceeds the maximum grade differential limit is included in measuring the maximum building height. On sloped lots, a segmented grade plane may be applied to different portions of a building. 3. See section 15-2-3 of this title for exceptions to building height. D. Setbacks: 1. Front Yard: T#4ty 20 -feet (N4 minimum. Off street parking may encroach upon the setback area, but may not diminish the required amount of landscaping. 2. Side Yard: Twenty five 10 -feet (2-5} minimum, unless one of the following conditions exists: a. If the side yard adjoins a dedicated street, a minimum of #44ty 20 -feet {304 shall be provided; and b. If the side yard abuts property with a different classification, the side yard setback shall be the average of the two R4 side yard setbacks, but not less than ten feet440!). 3. Rear Yard: €+ve 5 -feet (5' minimum, unless the rear yard adjoins an alley, dedicated street, or public right-of-way, or if the primary access is through the rear yard. In these cases, a minimum of thi#yF 20 -feet f3O4 shall be provided. 4. Future Street Right-of-way Lines. If any future street right-of-way line has been established by plan adopted by the city—council, such line shall be considered to be the_prooerty line for purposes of determining setbacks. 5. Easements. Setbacks from legal easements. other than street right-of-way easements. shall not be required. In addition to the appropriate review and approval by the city. no construction of any structure or im rovement is allowed within a legal easement without written authorization from the legal bolder of the easement. Such authorization shall be in a form acceptable to the Director. Street Page 9 176 E. Lot Frontage: Each lot in the MU -N Zone shall have a minimum frontage on a street of ane hundred 100 -feet -(1003. F. Building Area: The total net floor area of all buildings shall not exceed the total net square footage of the property multiplied by 1.3 or an FAR 1.3:1. Additional FAR may be granted for properties east of Pacific Coast Highvuati cam— 1'"ada Boulo.«Fd only, with approval of a transfer of development rights (TDR) plan. -- i r—i I I r M.U• NZone r f NE 10,000 Sf F.A.R. a, 1.3 Bldg. Area = 13.000 Sf SECTION 8: 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 9: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of EI Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 10: This Ordinance will become effective on the 31 st day following its passage and adoption. PASSED AND ADOPTED this day of Page 10 2019. Drew Boyles, Mayor 177 APPROVED AS TO FORM: Mark D. Hensley, City Attorney ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. was duly introduced by said City Council at a regular meeting held on the day of 2019, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of 2019, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy Weaver, City Clerk Page 11 178 RESOLUTION NO. 2864 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF EL SEGUNDO RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE AMENDING CHAPTERS 15-2 (GENERAL PROVISIONS), 15-513 (CORPORATE OFFICE (CO) ZONE), AND 15-5E (URBAN MIXED USE NORTH (MU -N) ZONE) OF TITLE 15 OF THE EL SEGUNDO MUNICIPAL CODE REGARDING ENCROACHMENTS AND SITE DEVELOPMENT STANDARDS IN SUCH ZONES. (Environmental Assessment No. 1253 and Zone Text Amendment No. 19-07) The Planning Commission of the City of EI Segundo does resolve as follows: SECTION 1: The Planning Commission finds and declares that: A. On May 7, 2019, Ben Newman initiated the process to amend Title 15 of the Municipal Code in order to reduce the required setbacks and allow certain encroachments into the setbacks for properties in the in the Urban Mixed Use North (MU -N) Zone; and, after further consideration and evaluation, Staff augmented the application by including the same for properties in the Corporate Office (CO) Zone; B. The applications were reviewed by the City's Planning and Building Safety Department for, in part, consistency with the General Plan and conformity with the EI Segundo Municipal Code (ESMC); C. The City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"); D. The Planning Commission of the City of EI Segundo held a noticed public hearing on July 25, 2019, to review and consider the staff report prepared for the Project, receive public testimony, and review all correspondence received on the Project; and, E. This Resolution, and its findings, are made, in part, based upon the evidence presented to the Commission at its July 25, 2019, public hearing including, the staff report submitted by the Planning and Building Safety Department. SECTION 2: Factual Findings and Conclusions. The Planning Commission finds that the following facts exist: Page 1 179 A. The CO Zone is intended to provide for the development of offices, and principal uses are restricted to a mixture of office and food serving uses with limited retail. B. The MU -N Zone is intended to provide areas where a mixture of compatible commercial, office, research and development, retail and hotel uses can locate and develop in a mutually beneficial manner. C. The purpose of the MU -N Zone is to ensure that adequate open space and development regulations will create a favorable environment for abutting uses. Further, uses located within the MU -N Zone are encouraged to provide street level uses which allow for, and facilitate, pedestrian activity for area workers and visitors. D. Zone Text Amendment No. 19-07 amends Section 15-2-7 (Open Space Areas and Encroachments) to allow outdoor dining areas, gathering areas and other encroachments into the required setback areas. E. Zone Text Amendment No. 19-07 amends Section 15-5D-7 (Site Development Standards) by reducing the setback requirements in the CO Zone. F. Zone Text Amendment No. 19-07 amends Section 15-5E-7 (Site Development Standards) by reducing the setback requirements in the MU -N Zone. SECTION 3: General Plan Findings. As required under Government Code § 65454 the proposed amendment of the CO Zone are consistent with the City's General Plan as follows: A. Goal LU -1: Maintain EI Segundo's "small town" atmosphere, and provide an attractive place to live and work. The amendments provide greater opportunities in the MU -N and CO zones by allowing building closer to the street and allowing pedestrian -oriented amenities to encroach into setbacks, which serve as convenient and pleasant amenities to workers and visitors and encourages pedestrian activity in the area. Further, these spaces result in gatherings of people in publically visible places in parts of the city that are oftentimes devoid of human activity. B. Objective LU44: Provide areas where development has the flexibility to mix uses, in an effort to provide synergistic relationships which have the potential to maximize economic benefit, reduce traffic impacts, and encourage pedestrian environments. Allowing such encroachments expands the potential mix of uses and amenities they offer to workers on site and in close proximity, thereby maximizing economic benefit in the MU -N and CO Zones. Currently there are very few eateries or casual gathering areas within these parts of the City. The amendment will bring buildings closer to the street and allow outdoor gathering areas specifically as amenities for employees and for those who work within walking distances. Since these areas will cater to the workforce that is already Page 2 180 present onsite or near the sites, there would be a reduction of vehicle trips since workers would drive to other parts of the city less frequently. SECTION 4: Zone Text Amendment Findings. In accordance with ESMC § 15-26-4 and based on the findings set forth in Section 3, the proposed amendments are consistent with the goals, policies, and objectives of the ESMC as follows: A. The amendments are 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. The amendments are consistent with the purpose of the MU -N and CO zones in that they facilitate and promulgate where a mixture of compatible commercial, office, research and development, retail and hotel uses can locate and develop in a mutually beneficial manner. C. The amendments are necessary to facilitate the development process and ensure the orderly establishment of new uses and the development of outdoor amenity areas in the MU -N and CO Zones that are compatible with surrounding properties and the public right-of-way. SECTION 5: Environmental Assessment. Based on the facts set forth in Section 2, the Planning Commission finds that the zone text amendment is exempt from further review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines § 15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. SECTION 6: Recommendation. The Planning Commission recommends that the City Council adopt the ordinance set forth in attached Exhibit A, which is incorporated into this resolution by reference. SECTION 7: Reliance on Record. Each and every one of the findings and determination in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects; and SECTION 8: Limitations. The Planning Commission's analysis and evaluation of the project is based on information available at the time of the decision. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. In all instances, best efforts have been made to form accurate assumptions. SECTION 9: The Commission secretary is directed to mail a copy of this Resolution to any person requesting a copy. Page 3 181 SECTION 12: This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded. PASSED, APPROVED AND ADOPTED this 25th day of July 2019. ATTEST: Sam Lee, Secretary APPROVED AS TO FORM: Mark D. Hensley, City Attorney ma Ryan Baldino, Chairperson City of EI Segundo Planning Commission David King, Assistant City Attorney Page 4 Baldino - Absent Newman - Aye Hoeschler - Aye Keldorf - Aye Wingate - Aye 182 EXHIBIT "A" DRAFT ORDINANCE NO. AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE CHAPTERS 15-2 (GENERAL PROVISIONS), 15-513 (CORPORATE OFFICE (CO) ZONE), AND 15-5E (URBAN MIXED USE NORTH (MU -N) ZONE) OF TITLE 15 OF THE EL SEGUNDO MUNICIPAL CODE REGARDING ENCROACHMENTS AND SITE DEVELOPMENT STANDARDS SUCH ZONES. (Environmental Assessment No. 1253 and Zone Text Amendment No. 19-07) The City Council of the city of EI Segundo does ordain as follows: SECTION 1: The Council finds and declares as follows: A. On May 7, 2019, Ben Newman initiated the process to amend Title 15 of the EI Segundo Municipal Code (ESMC) in order to reduce the required setbacks and allow certain encroachments into the setbacks for properties in the in the Urban Mixed Use North (MU -N) Zone; and, after further consideration and evaluation, Staff augmented the application by including the same for properties in the Corporate Office (CO) Zone; B. The applications were reviewed by the City's Planning and Building Safety Department for, in part, consistency with the General Plan and conformity with the ESMC; C. The City reviewed the project's environmental impacts under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the "CEQA Guidelines"); D. On July 25, 2019, the EI Segundo Planning Commission held a noticed public hearing to receive public testimony and other evidence regarding the application including information provided by city staff; and, adopted Resolution No. 2864 recommending that the City Council approve the proposed amendments; E. On , 2019, the City Council held a public hearing and considered the information provided by City staff and public testimony regarding this Ordinance; and, F. This Ordinance and its findings are made based upon the entire administrative record including testimony and evidence presented to the City Council at its Page 5 183 , 2019 public hearing and the staff report submitted by the Planning and Building Safety Department. SECTION 2- General Plan Findings. As required under Government Code § 65454 the proposed Ordinance is consistent with the City's General Plan as follows: A. Goal LU -1: Maintain EI Segundo's "small town" atmosphere, and provide an attractive place to live and work. The amendments will provide greater opportunities in the MU -N and CO zones by allowing building closer to the street and allowing pedestrian -oriented amenities to encroach into setbacks, which serve as convenient and pleasant amenities to workers and visitors and encourages pedestrian activity in the area. Further, these spaces result in gatherings of people in publically visible places in parts of the city that are oftentimes devoid of human activity. B. Objective LU44: Provide areas where development has the flexibility to mix uses, in an effort to provide synergistic relationships which have the potential to maximize economic benefit, reduce traffic impacts, and encourage pedestrian environments. Allowing such encroachments expands the potential mix of uses and amenities they offer to workers on site and in close proximity, thereby maximizing economic benefit in the MU -N and CO Zones. Currently there are very few eateries or casual gathering areas within these parts of the City. The amendments will bring buildings closer to the street and allow outdoor gathering areas specifically as amenities for employees and for those who work within walking distances. Since these areas will cater to the workforce that is already present near the sites, there would be a reduction of vehicle trips since workers would drive to other parts of the city less frequently. SECTION 3: Zone Text Amendment Findings. In accordance with ESMC § 15-26-4 and based on the findings set forth in Section 3, the proposed amendments are consistent with the goals, policies, and objectives of the ESMC as follows: A. The amendments are 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. The amendments are consistent with the purpose of the MU -N and CO zones in that they facilitate and promulgate where a mixture of compatible commercial, office, research and development, retail and hotel uses can locate and develop in a mutually beneficial manner. C. The amendments are necessary to facilitate the development process and ensure the orderly establishment of new uses and the development of outdoor amenity areas in the MU -N and CO Zones that are compatible with surrounding properties and the public right-of-way. Page 6 184 SECTION 4: Environmental Assessment. Based on the facts set forth in Section 2, the City Council finds that the zone text amendment is exempt from further review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines § 15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. SECTION 5: ESMC Section 15-2-7 (Open Space Areas and Encroachments) is amended to read as follows (StFikethFOU^" is language deleted, and underlined is language added): 15-2-7: OPEN SPATE AREAS AND ENCROACHMENTS: Encroachments are subject to the following provisions in the indicated zones: The A. All Zones: "Architectural landscape features" as defined in section 15-1-6 of this title may encroach into setbacks as specified in section 15-2-14 of this chapter. In all zones, every required yard must be open and unobstructed from the ground up, except the following intrusions may project two feet (2' into required yards, provided the required yard cannot be reduced to less than three feet (-34 in width: 1. Bay and greenhouse windows, on the first floor in any setback and on the second floor only in the front yard setback, provided that said window is not wider than eight feet (8) measured in the general direction of the wall of which it is a part; 2. Cornices, corbels. columns,_ ,belt courses, sills, eaves or other similar architectural building features as defined in section 15-1-6 of this title. Eaves may project six inches (6!1) into any nonconforming side or rear yard which is three feet (34 in width. ShutteFs,—GeFbefs;and dentils may project six ` w44es (6") !`olum80t GRe fG t 4 ; 3. Fireplace structures not wider than eight feet @4 measured in the general direction of the wall of which it is a part; 6. Guardrails feF safety preteGfiGR around ramps and Staill, 64. Planting boxes or masonry planters not exceeding €ortyW942-inches (42") in height; and 7—.5. Uncovered porches, platforms and landings which do not extend above the floor level of the first floor. 'TR -d.d' ' n, stairs Ramps, stairs, and safe guardrails leading to said porches., and platforms and landings may encroach further into a required setback but must maintain at least a three-foot (3') distance to a property line. B. Residential Zones: In residential zoning districts: 1. A porte-cochere (open carport) may be placed over a driveway in the front twcir,t 20 feet of one {� side yard setback, outside of the front yard setback, or attached to the front t•. ent., fan+''' 20 feet of one (- dwelling unit closest to the front lot line, provided the structure is not more than one (-a-) story Page 7 185 in height; is unenclosed on three (3) sides; and is entirely open except for the necessary supporting columns and architectural features. 2. Mechanical equipment, such as pool heaters, water heaters, and air conditionerst and solar energy system an►aurtenances not wider than eight feet (84 measured in the general direction of the wall of which it is a part, and adequately soundproofed, may project two feet (2' into required side and rear yards, provided the required yard cannot be reduced to less than three feet (34. 3. Detached arbors, pergolas, or trellises that partially cover a walkway and do not exceed eight feet (& } in overall height, six feet (& } in width, and five feet (54 in length may have a zero (A) setback in the front and street -side yards. However, the structures must comply with the requirements of sections 15-2- 6, "Corner And Alley Clearance", and 15-2-11, "Driveway Visibility", of this chapter. 4. Uncovered porches, platforms and landings which do not exceed tweM-_ irvc#es (4-2-" X12 inches in height above finished grade may have a zero (9) setback in non -street fronting side and rear yards. C. Nonresidential Zones wig: In nonresidential zoning districts, mechanical equipment and accessory structures that do not contain occupied space, as defined by the California Building Code adopted by this Code, or that do not contain net floor area, as defined in section 15-1-6 of this title, may be located within a required interior side or rear setback area. 1. Mechanical equipment includes, wIthG_ut emergency generators; air conditioning and heating units; transformers; solar ener y system =Urtenances;_and other equipment that is accessory to the principal permitted use. Mechanical equipment does not include electrical substations. 2. Accessory structures include, t• ithe, t limitation trash and recycling enclosures; around -mounted and covered parking solar energy systems;_and structures that exclusively house building operating equipment that is accessory to the principal permitted use. 3. Mechanical equipment and non -occupied accessory strucures within a required setback are subiect to the following re uirementa a. The mechanical equipment or accessory structure may not be higher than 18 -feet. b. The mechanical equipment or accessory structure may not e lonc jer than 64 -feet parallel to the line of the property to which it is situated or longer than 35 -percent of the length of such property line to which it is situated whichever is less. c. The mechanical equipment or accessory structure may not be located within a required interior side or rear setback area if the in erior side or re r propedy line abu s a residentially zoned 12roperty ar abuts a ublic street. d. Operation of the mechanical equipment must not exceed the noise standards for commercial and industrial property as identified in this Code. e. The mechanical equipment or accessory structure -must be set back from any interior side or rear prol?eLty line to meet all access safety. and screening requirements as specified in title 13 of this Code and this title Page 8 186 including. but not limited to, adequate ingress and egress for public safety employees. WON MO.- In - - 3 w 2 MS. ►� -=emL WHO • _ S� • 'L D. Urban Mixed Use North -MU-N). Urban Mixed Use South (MU -S), Carparate Office (CO) and Light Industrial (M-1) Zones: In addition to ether the encroachments permitted in nonresidential zoning districts generally, Vis; $exec+rias, ra. psr aid related safety quarrdra4s-, patios, decks, and similar outdoor areas used as gathering spaces; and outdoor dining areas, may be located within setback areas as follows: 1. Stairs, pedestrian ramps, and related safety guardrails must maintain at least a three foot {X} -distance to a lot line. 2. Patios, decks, and similar outdoor areas used as gathering spaces, and outdoor dining areas must be enclosed by walls, fences, and/or hedges. These may be up totheme f�_2 inches in height and maintain at least a five foot454 distance to a property line. Walls, fences, and/or hedges may exceed three feet sox -42 inches {X641} in height, provided that the portion exceeding three fool s 2 inches {X69} in height is of a transparent or translucent material, subject to the review and approval of the Director-ef-R af"40n^ and B 4d inn Safety. These areas may be covered by a nonsolid trellis or pergola; or by a retractable awning, large umbrella or other similar nonpermanent cover which provides protection from rain, subject to the approval by the Director -Of PlaRRiRg girl Building Safety. �,-�.zr . Page 9 187 SECTION 6: ESMC §15-5D-7 (Site Development Standards) is amended to read as follows: 15-5D-7: SITE DEVELOPMENT STANDARDS: All uses in the CO Zone shall comply with the development standards contained in this section. A. General Provisions: 1. All uses shall be conducted within a fully enclosed building, except: a. Outdoor restaurants and cafes incidental to the permitted use, provided they comply with the provisions of section 15-2-16 of this title. b. Recreational facilities customarily conducted in the open. 2. Prior to approval of any development project, all criteria of the Transportation Demand Management (TDM) and trip reduction criteria, as provided for in chapter 16 of this title shall be met. 3. Other provisions as required in chapter 2 of this title. B. Lot Area: A minimum often +howsaR4410,000) square feet. C. Height: 1. East of Pacific Coast Highway : No building or structure shall exceed 200 -feet. two h, Rd Fed feat (200') 2. West of Pacific Coast Highway : No building or structure shall exceed 45 -feet. fr,.+;, f;.,a fon+ � 3. If the subject property abuts residentially zoned property, no building or structure shall exceed 40 -feet. fo " f 9'y 4. A maximum grade differential of eight feet kg) is permitted on sloping lots. The vertical height which exceeds the maximum grade differential limit is included in measuring the maximum building height. On sloped lots, a segmented grade plane may be applied to different portions of a building. 5. See section 15-2-3 of this title for exceptions to building height. D. Setbacks: 1. Front Yard: Twent +"met k2,5� 20 -feet minimum. 2. Side Yard: Fifteen foo+ (15'` 10 -feet minimum, unless one of the following conditions exists: a. If the side yard adjoins a dedicated street, a minimum of 20 -feet Wienty ive feet (25� shall be provided; b. If the side yard abuts property with a different classification, the side yard setback shall be the average of the two {2) side yard setbacks, but not less than ten feet44-0- ; and, c. If the side yard abuts property zoned for residential uses, a minimum of eee hundred100-feet 400$ shall be provided, including a tweet-y-fk�e 25 -foot (25) landscape buffer. 3. Rear Yard: Ten feet44-9-), unless one (4) of the following conditions exists: Page 10 188 a. If the rear yard adjoins an alley, dedicated street, public right-of-way, or if the primary access is through the rear yard, a minimum of t e 20 - feet 9-54 shall be provided; b. If the rear yard abuts property with a different classification, the rear yard setback shall be the average of the two 94 -rear yard setbacks, but not less than ten feet 404; and c. If the rear yard abuts property zoned for residential uses, a minimum of eee hundFed 100 -feet 4004 shall be provided, including a twentye 25 -foot {2 } landscape buffer. 4. Future Street Right-of-way Lines. If any future street right-of-way line has been established by plan adopted by the city council, such line shall be considered to be the property line for ❑urposes of determining setbacks. 5. Easements. Setbacks from egal easements. other than street right-of-way easements, shall not be required. In addition to the appropriate review and approval by the city, no construction of any struot_ure or im rovement is allowed within a legal easement without written authorization from the legal holder of the easement. Such authorization shall be in a form acceptable to the Director. ..... - O Zone 10,000 sf Lot Min. C Other. `E 10, 1 F Zone Min. V N Front 100' Min Frontage Alley t u7 CO Zone i 25' M. Front E. Lot Frontage: Each lot shall have a minimum frontage on a street of Gne heed 1 00 -feet 4004. F. Building Area: The total net floor area of all buildings shall not exceed the total net square footage of the property multiplied by 0.8 or an FAR of 0.8:1. Additional Page 11 189 FAR may be granted for properties east of Pacific CoastHigh� S2v£a BGWevard only, with approval of a transfer of development rights (TDR) plan. 1001 = 10.000 Sf F.A.R. = 0.8 $ Bldg. Area = 8,000 Sf SECTION 7: ESMC § 15-5E-7 (Site Development Standards) is amended to read as follows: 15-5E-7: SITE DEVELOPMENT STANDARDS: All uses within the MU -N Zone shall comply with the development standards contained in this section. A. General Provision: 1. All uses shall be conducted wholly within an enclosed building except: a. Electrical distribution stations. b. Outdoor restaurants and cafes incidental to the permitted use, provided they comply with the provisions of section 15-2-16 of this title. c. Recreational facilities customarily conducted in the open. d. Special uses, to the degree the conditional use permit granting such special uses expressly permits operation in other than a fully enclosed building. 2. Prior to approval of any development project, all criteria of the Transportation Demand Management (TDM) and trip reduction criteria as provided for in chapter 16 of this title shall be met. 3. Other provisions as required in chapter 2 of this title. B. Lot Area: A minimum lot area of ten-t4ousand (10,000) square feet. C. Height: Page 12 190 1. Buildings and structures shall not exceed a height of one hundred seventy five 175-feet4755�. 2. A maximum grade differential of eight feet (&} is permitted on sloping lots. The vertical height which exceeds the maximum grade differential limit is included in measuring the maximum building height. On sloped lots, a segmented grade plane may be applied to different portions of a building. 3. See section 15-2-3 of this title for exceptions to building height. D. Setbacks: 1. Front Yard: T#;fty 20 -feet {3A'} minimum. Off street parking may encroach upon the setback area, but may not diminish the required amount of landscaping. 2. Side Yard: Twenty fide 10 -feet {25' minimum, unless one of the following conditions exists: a. If the side yard adjoins a dedicated street, a minimum of y 20 -feet {394 shall be provided; and b. If the side yard abuts property with a different classification, the side yard setback shall be the average of the two (2-) side yard setbacks, but not less than ten feet440- . 3. Rear Yard: €+ve 5 -feet (54 minimum, unless the rear yard adjoins an alley, dedicated street, or public right-of-way, or if the primary access is through the rear yard. In these cases, a minimum of t" 20 -feet f30- shall be provided. 4. Future Street Right-of-way Lines. If any future street right-of-way line has been established by plan adopted by the city council such line shall be considered to be the property line for purposes of determining setbacks. 5. Easements. Setbacks from lergal easements, other than street right-of-way easements. shall not be required. In addition to the appropriate review and approval by the city, no construction of any structure or im r vement is allowed within a legal easement without written authorization from the Legal holder of the easement. Such authorization shall be in a form acceptable to the Director. Street 4W Min. FrontAge Page 13 191 E. Lot Frontage: Each lot in the MU -N Zone shall have a minimum frontage on a street of ^nod 100 -feet}. F. Building Area: The total net floor area of all buildings shall not exceed the total net square footage of the property multiplied by 1.3 or an FAR 1.3:1. Additional FAR may be granted for properties east of Pacific Coast Hi hwa Sepulveda Bo4k-Aw4 only, with approval of a transfer of development rights (TDR) plan. =10.00051 F.A.R.= 1.3 810g. Area = 13.000 Sf SECTION 8: 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 9: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of EI Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 10: This Ordinance will become effective on the 31 st day following its passage and adoption. PASSED AND ADOPTED this day of 2019. Mayor Page 14 192 APPROVED AS TO FORM - Mark D. Hensley, City Attorney ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No, was duly introduced by said City Council at a regular meeting held on the day of 2019, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the day of 2019, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy Weaver, City Clerk Page 15 193 EL SEGUNDO PLANNING COMMISSION MEETING DATE: July 25, 2019 AGENDA STATEMENT AGENDA HEADING: Public Hearing AGENDA DESCRIPTION: Consideration and possible action regarding Environmental Assessment No. EA -1253 and Zone Text Amendment No. ZTA 19-07 to amend certain sections in Title 15 of the El Segundo Municipal Code pertaining to the site development standards and encroachments in the Corporate Office (CO) Zone and the Urban Mixed Use North (MU -N) Zone of the City. Pursuant to the provisions of the California Environmental Quality Act, the proposed zone text amendment is exempt from further review (CEQA Section 15061), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. Address: Corporate Office (CO) and Urban Mixed Use North (MU -N) Zones of El Segundo Applicant: Ben Newman RECOMMENDED PLANNING COMMISSION ACTION: It is recommended that the Planning Commission open the public hearing and take public testimony on the proposed amendments; close the public hearing and consider the evidence; and, adopt PC Resolution No. 2864, recommending that the City Council approve Environmental Assessment No. 1253 and Zone Text Amendment No. ZTA 19-07. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Planning Commission Resolution No. 2864 Exhibit A – Draft Ordinance f-: ORIGINATED BY: Eduardo Schonborn, AICP, Principal Planner— REVIEWED BY: Gregg McClain, Planning Managere " % L APPROVED BY: Sam Lee, Director of Planning and Building Safety I. INTRODUCTION Staff has met with several property owners over the past year regarding potential redevelopment projects in the Commercial Office (CO) and Urban Mixed Use North (MU -N) zones. With the transformation of traditional work and office spaces and the desire for more human scale development patterns, staff has seen that the existing development standards require large setbacks, oftentimes resulting in parking lots or areas void of any human -oriented space or amenity. Recently, Mr. Ben Newman prepared plans to remodel a building at the southeast corner of Mariposa and Nash, which is a legal nonconforming building that does not comply with the current setback requirements, resulting in a legal non -conforming structure. Mr. Newman proposes outdoor patios and gathering spaces for employees and guests, however, the existing zoning code standards do not allow for encroachments into setbacks like other commercial zones in the city. As a result, on May 7, 2019, Mr. Newman submitted a zone text amendment application, initiating the process to amend the Title 15 of the Municipal Code in order to reduce 194 the setback requirements and allow certain encroachments in the MU -N Zone. Staff augmented the application by including the same for properties in the CO Zone. II. DISCUSSION There are three sections in the Zoning Code regulations that are proposed to be amended by this application; these are setback encroachments, reduction to the setback requirements for properties in the Urban Mixed -Use North (MU -N) Zone, and reduction to the setback requirements for properties in the Corporate Office (CO) Zone. Setback Encroachments Although minor encroachments have typically been allowed (such as parking spaces, planters and uncovered porches) the lack of allowable significant encroachments severely limit the usable areas of the property, with only insignificant aesthetic benefit to the street. Recently, the City has taken the opportunity to amend the code where appropriate to encourage and facilitate developments that provide sidewalk -adjacent uses that promote pedestrian activity. For example, in 2016 Continental Development Corporation initiated an application to amend the development standards for the Urban Mixed Use South (MU -S) zone specifically to allow outdoor dining/gathering areas and related structures to encroach into setback areas along street frontages. The amendment facilitated the development of the Apollo Landing project on Rosecrans Avenue, which contains outdoor dining areas within the setbacks of the property. The intent of the amendment was to provide for enhanced building features and amenities, which bring more activity closer to the sidewalk, thereby improving the appearance and feel of the built environment. Seeing the success and benefits of the Apollo Landing project, in 2018 a code amendment was initiated to also allow encroachments in the M-1 zone. Since the development pattern in the M-1 zone consists of low -profile and unadorned tilt -up buildings with large footprints, large setbacks, wide streets and a lack of shade trees, this makes for a bleak and uninviting environment. The 2018 amendment has helped with re -purposing buildings and these encroachments are being designed and incorporated into the redevelopment of several large parcels along Alaska Avenue and Utah Avenue. Staff believes the amendments that facilitated these changes steps in the right direction for the MU -S and M-1 zones. The proposed amendment would provide property owners within the MU - N and CO zones a similar ability to utilize setback areas for pedestrian and other human -scale activity, rather than limited to landscaping and parking. Staff believes this can be a catalyst for activating their frontages and enlivening the street, resulting in improved appearance, enhanced amenities for tenants, and a more pedestrian -friendly environment. Setback Reductions in the CO and MU -N Zones The CO Zone is intended to provide for the development of offices, and principal uses are restricted to a mixture of office and food serving uses with limited retail. The MU -N Zone is to provide areas where a mixture of compatible commercial, office, research and development, retail and hotel uses can locate and develop in a mutually beneficial manner. The development regulations attempt to create adequate open space and a favorable environment for abutting uses. Further, uses are encouraged to provide street level uses which allow for and facilitate pedestrian activity for area workers and visitors. The current setback requirements provide for large setbacks from 2 195 property lines, creating more than "adequate" open space between buildings, which staff believes should be reduced. This would shift the emphasis from quantity of open space to the quality by facilitating and encouraging pedestrian activity. Additionally, reducing the required setbacks to facilitate pedestrian -oriented designs enhances the mixture of Thus, Staff recommends reducing the required front and side setbacks in the CO and MU -N zones as described in the following table. This will bring these zones closer to alignment with the Mixed Use -South (MU -S) zone, to which they are closer in purpose and intensity than a manufacturing zone such as M-1. All other development standards would remain unchanged. TABLE 1 III. TYPE OF ACTION (LEGISLATIVE; QUASI-JUDICIAL; OR ADVISORY) Legislative: The recommended action is a proposed ordinance amending the Zoning Code, in an effort to establish policies and rules for future application. In considering such action, the Commission acts in its legislative capacity, and must only find that the proposed Ordinance is consistent with the General Plan and the Zoning Code, as discussed below. IV. GENERAL PLAN AND ZONING CONSISTENCY Consistency with the El Segundo General Plan ESMC § 15-1-1 (Purpose, Title) states that Title 15 is the primary tool for implementation of the goals, objectives, and policies of the El Segundo General Plan. Accordingly, the Planning Commission must find that the proposed Amendment is consistent with those goals, objectives, and policies. Staff believes that the necessary findings can be made to recommend City Council approval of the proposed amendments to the encroachments and setback requirements. The findings are discussed in the draft resolution and ordinance. Consistency with the El Segundo Municipal Code Pursuant to ESMC Title 15, Chapter 26 (Amendments), in order to recommend City Council approval of the proposed amendments, the Planning Commission must find that the amendments are necessary to carry out the general purpose of ESMC Title 15. The purpose of this Title (ESMC § 15-1-1) is to serve the public health, safety, and general welfare and to provide economic and social advantages resulting from an orderly planned use of land resources. Staff believes that the necessary findings can be made to recommend City Council approval of the proposed Amendment. 3 Setbacks in Select Commercial and Manufacturing Zones CO MU -N MU -S M-1 No No Current Proposed Current Proposed changes Chang Front 25 20 30 20 20 25 Side -interior 15 10 25 10 10 15 Side -street 25 20 30 20 20 25 Side -residential abutting 100 100 n/a n/a n/a Rear 10 10 5 5 5 10 III. TYPE OF ACTION (LEGISLATIVE; QUASI-JUDICIAL; OR ADVISORY) Legislative: The recommended action is a proposed ordinance amending the Zoning Code, in an effort to establish policies and rules for future application. In considering such action, the Commission acts in its legislative capacity, and must only find that the proposed Ordinance is consistent with the General Plan and the Zoning Code, as discussed below. IV. GENERAL PLAN AND ZONING CONSISTENCY Consistency with the El Segundo General Plan ESMC § 15-1-1 (Purpose, Title) states that Title 15 is the primary tool for implementation of the goals, objectives, and policies of the El Segundo General Plan. Accordingly, the Planning Commission must find that the proposed Amendment is consistent with those goals, objectives, and policies. Staff believes that the necessary findings can be made to recommend City Council approval of the proposed amendments to the encroachments and setback requirements. The findings are discussed in the draft resolution and ordinance. Consistency with the El Segundo Municipal Code Pursuant to ESMC Title 15, Chapter 26 (Amendments), in order to recommend City Council approval of the proposed amendments, the Planning Commission must find that the amendments are necessary to carry out the general purpose of ESMC Title 15. The purpose of this Title (ESMC § 15-1-1) is to serve the public health, safety, and general welfare and to provide economic and social advantages resulting from an orderly planned use of land resources. Staff believes that the necessary findings can be made to recommend City Council approval of the proposed Amendment. 3 The findings are discussed in the draft resolution and ordinance. V. ENVIRONMENTAL REVIEW: Pursuant to the provisions of the California Environmental Quality Act, the proposed zone text amendment is exempt from further review (CEQA Section 15061), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. As such, no further environmental analysis is required. 4 197 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA STATEMENT AGENDA HEADING: Public Hearing AGENDA DESCRIPTION: Consideration and possible action regarding an amendment to the El Segundo South Campus Specific Plan (ESSCSP), Environmental Assessment No. EA -905, to amend the Development Agreement (No. DA 11-02) and Conditions of Approval for the 142 -acre Project site at 2000-2100 East El Segundo Boulevard, pursuant to the adopted Environmental Impact Report. Applicant and Property Owner: Raytheon Company RECOMMENDED COUNCIL ACTION: 1. It is recommended that the City Council open the public hearing and take public testimony on the proposed project, close the public hearing and consider the evidence, 2. Schedule second reading and adoption of the Ordinance for September 3, 2019. 3. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Exhibit A —Planning Commission Resolution No. 2865 2. Exhibit B —Development Agreement, No. DA 11-02 3. Exhibit C — First Amendment to the Development Agreement 4. Exhibit D — Conditions of Approval for Reso. No. 4958 and Ord. No. 1516 ORIGINATED BY: Gregg McClain, Planning Manager(!' REVIEWED BY: Sam Lee, Director of Planning and Building Safe APPROVED BY: Scott Mitnick, City Managert S W f C�o I. INTRODUCTION The Raytheon Company (Applicant) is proposing an amendment to the El Segundo South Campus Specific Plan (ESSCSP), Environmental Assessment No. EA -905, to amend the Development Agreement (DA 11-02) and two Conditions of Approval and add one new condition in order to define the project phasing and timing of infrastructure improvements. The proposed phasing will not result in any alterations to the maximum development square footage, automobile trip cap, development standards, permitted uses, design guidelines or site plan review requirements of the ESSCSP. The proposed phasing amendments tie infrastructure improvements to triggering developments within the specific plan. The El Segundo South Campus Specific Plan was approved by the City Council on December 1, 2015, and addresses future development on Raytheon's 142 acre campus. The DA, MMRP and Conditions of Approval contain provisions that require infrastructure improvements based on two project phases. The ESSCSP itself indicates that the 2 -phase plan is "conceptual" and used merely as "a best estimate for planning purposes only." (ESSCSP, p 27). Additionally, the ESSCSP also states that part of its justification is to "provide more flexibility for the development of a master - planned Campus that will be constructed in several phases." (ESSCSP p.16) 10 198 Although the specific plan suggests multiple phases --or at least does not specify the number of phases—the development agreement references only two phases and the vesting tentative map for the project identified three phases. (See below) The proposed amendments will bring the DA into alignment with the ESSCSP with regard to the phasing schedule and assign developer -funded improvements to occur with the phases that trigger the related impacts. The final map will also reflect the same phasing plan. VESTING TENTATIVE TRACT N0, 71551 PHASING EXHIBIT EL SEGUNDO BOULEVARD 23 ! K Phase I under both the original phasing plan and the proposed changes includes two parcels fronting El Segundo Boulevard between Continental Boulevard and Nash Street. Raytheon sold this phase and construction should start on a retail center before the end of this year. Phase II under the DA included everything that was not in Phase I. This is similar to the vesting tentative map, except the southern portion of the proposed Continental Boulevard extension was called out as Phase III. The applicant proposed to make Phase II only the proposed Nash Street extension and those properties east and south of it. (See below, which will be Exhibit F of the DA.) 2 199 2 EL SEGUNDO BOULEVARD PHASE I :: PHASE II F11 PHASE III PHASE IV The proposed Phase III is the northern part of the proposed Continental Boulevard extension and those parcels to the west of it, which are currently occupied by the Raytheon employees' park. Phase IV is the remainder of the ESSCSP, or more specifically that portion between Continental and Nash and south of Phase I. II. JUSTIFICATION Raytheon's request for four phases is driven by two factors. One is the DA's deadline to either build the Nash Street extension from El Segundo Boulevard to Hughes Way or pay the City a lump sum of $5,000,000 in 2027. The other factor is related to the growth of the workforce recently and a need to develop space beyond the current capacity. In order to achieve these goals, Raytheon is proposing to sell the portion they are designating as Phase II. Pursuant to the DA, both as it currently exists and as they propose to amend it, construction of the Nash Street extension will be triggered by any development beyond Phase I. Therefore, any new development that results from the sale of Phase II will mandate the construction of Nash Street, and Raytheon proposes to use proceeds from the sale to either finance the construction of 200 Nash Street or to transfer that responsibility to the buyer of Phase II. Regardless of which option is selected, any construction of new square footage outside of Phase I will trigger the Nash Street construction mandate. The proceeds from the sale of Phase II will also fund the necessary physical reconfiguration of space within the Raytheon plant to accommodate the new personnel they are currently hiring. One benefit to the City of allowing four phases is that it almost ensures that Nash Street will be constructed, and sooner than later. This is because allowing phasing makes it feasible for Raytheon to proceed with the sale and related mitigation measures in manageable bits. Requiring both Nash and Continental to be built before any development past Phase I can be approved, and also requiring traffic mitigation for the entire specific plan even though the full impacts to trigger the mitigation will not develop for years, if ever, creates such a high hurdle for Raytheon that it seems unlikely anything will be developed past Phase I. Assigning the obligation to build Continental Boulevard to those portions of the specific plan that will benefit from it and linking mitigation to impact thresholds rather than all up front, makes sense for Raytheon as well. It allows them to sell Phase II and use residual income to improve their existing campus to accommodate more engineers and technicians. Without this flexibility, those jobs would need to be placed in different Raytheon facilities elsewhere in the country. Following is a description of the proposed amendments to the DA and the conditions of approval that will allow the ESSCSP to be developed in four phases, will link the obligation to build the Continental Boulevard extension to the phases that are related to its need, and to link mitigation measures according to the phases that trigger the impacts that require mitigation. III. ANALYSIS Development Agreement + Section 1 (Definitions) were amended to include the following definitions: "Phase I" means the development of any new structure or improvement on any portion of either Lot 15 or 16 which are depicted on Exhibit F hereto. "Phase II" means the development of any new structure or improvement on any portion of Lot 7, 8, 13, 14, 19, 20, 22, 23, or 24 which are depicted on Exhibit F hereto. "Phase III" means the development of new structure or improvement on any portion of Lot: 1, 2, 3, 4, 25, or 26 which are depicted on Exhibit F hereto "Phase IV" means the development of any structure or improvement on any portion of Lot 5, 6, 9, 10, 11, 12, 17, 18, or 21 which are depicted on Exhibit F hereto. * Section 4.10.2 (Infrastructure Phasing Flexibility) was deleted. Section 4.10.3 ("Infrastructure Completion.") was amended to read as follows: No building permit or final inspection will be unreasonably withheld, conditioned, or delayed by City. However, no certificate of occupancy shall be issued for any building until all public or private infrastructure that will serve it or is required to be constructed pursuant to this Agreement is constructed by or caused to be constructed by the Developer 4 201 and inspected, approved and/or accepted by the Public Works Director and Building Official, or their designees. Section 4.11 (Term), the first sentence was amended to read as follows: The term of this Agreement is fifteen (15) years from the Effective Date (the "Term"). Section 7.1.2 (Nash Street) was amended to read as follows: The Nash Street extension must be constructed, inspected, approved and/or accepted by the Public Works Director or designee prior to the issuance of any certificate of occupancy for any new structure or improvement within Phase II, III or IV or for any new structure or improvement which would cause the Phase I Development trip cap of 89 a.m. peak hour, 225 p.m. peak hour trips, or 3,775 daily trips to be exceeded. ■ Section 7.1.4 was amended to read as follows: When the Nash Street extension is complete Developer must offer for dedication the street and public improvements associated with the street to City (collectively, "Nash Street Improvements"). The City will accept the dedication of the Nash Street improvements if it is constructed in accordance with City standards and as noted in 7.1.2. • Section 7.2.1 (Continental Boulevard Public Access) was amended to read as follows: Developer must build that portion of the extension of Continental Boulevard roadway that is to be located on Parcel 25 in a manner consistent with the Secondary Arterial or Collector roadway classification as shown on Vesting Map No. 71551. Prior to the issuance of any Certificate of Occupancy for any structures or improvement within Phase III. The Developer must build the extension of Continental Boulevard roadway that is to be located on Parcel 21 and Parcel 25 in a manner consistent with the Secondary Arterial or Collector roadway classification as shown on Vesting Map No. 71551. Prior to the issuance of any Certificate of Occupancy for new construction, improvements or change of use within Phase IV. • Section 7.9 was added to the Agreement: 7.9 Transportation and Traffic Mitigation Measures—Fair Share. When noted in the Mitigation, Monitoring, and Reporting Program's Mitigation Measures TRA -1 through 9 inclusive, the term "fair share" shall be determined by dividing the number of PM peak hour trips produced by the individual development seeking a Certificate of Occupancy by the total Project PM peak hour trips Ceiling as noted in City Council Ordinance No. 1516, Exhibit D "Conditions of Approval" (3,120); multiplied by the total construction value of the TRA -1 through 9 improvements that permit fair share contributions as opposed to actual construction, as submitted by a State -licensed Civil Engineer and accepted and approved by the City Engineer. Section 9 (Recreational Access) was amended to read as follows: 9.1 The Specific Plan provides for 7.54 acres of land to be used for Open Space and Recreational purposes. This land must remain private and only available to Raytheon employees. However, should Developer sell more than twenty percent (20%) of ESSCSP Campus Area (i.e., at least 28.44 acres and not including parcels for which an irrevocable 202 offer of dedication has been made to the City which are located in Phases I through IV), to a user other than Raytheon or a Raytheon affiliate, Developer must provide non - Raytheon or Raytheon affiliated employees within the ESSCSP area with permanent access to the 7.54 -acre recreational area within the Campus. The access must be formalized through agreements between Raytheon and the purchaser(s) of the property. 9.2 Within 30 days of approval of a land transfer of the recreational/open space area to an alternative parcel and before a building permit may be issued on Parcel 11, the Developer must record a 20 -year irrevocable offer of dedication of a 7.54 acre recreational/open space area to the City of El Segundo, in a form approved by the City Attorney, for future potential park purposes if located on any of the lots (Parcels 1, 2, 3, 4,.7, 8, 13 or 14 of Vesting Map No. 71551) and outside the Raytheon security fenced perimeter. 9.3 As an alternative to the requirements of Sections 9.1 and 9.2, prior to development of Phase III, the City and Developer may agree to explore other means of addressing the requirement for the 7.54 acre recreational/open space being located within the ESSCSP. Such alternatives may include funding for offsite recreational/open space within the City as opposed to an on-site reservation of such space. If terms and conditions of an alternative solution are mutually agreed upon by City and Developer in their respective sole discretion, the parties may amend the Agreement and supporting documentation appropriately. • The addresses used for notice purposes were revised to include current City Staff. Plannin Commission recommended changes to the Development A reement The Planning Commission recommended a re -write of Section 7.2.1 that was presented by Staff to enhance the clarity in this section. Additionally, the Commission asked that Section 9.3 include language that stressed a strong preference for open space within the specific plan area but outside of the Raytheon security perimeter. Both of the above recommendations are incorporated in the draft amendment. Conditions of Approval The Conditions of Approval for City Council Resolution No. 4958 and Ordinance No. 1516 are to be amended for consistency with the DA amendments as follows: • Condition 16 is amendment to read: If the applicant sells more that 20% of the ESSCSP campus area (28.44 acres), excluding parcels for which an irrevocable offer of dedication has been made, to a user other than Raytheon or a Raytheon affiliate, then all employees within the ESSCSP area must be provided access to the 7.54 acre Open Space and Recreational area in accordance with Section 9 of the Development Agreement. A 203 + New Condition 18.5 is added, which reads: As an alternative to the requirements of Conditions 16 and 17 and Sections 9.1 and 9.2 of the Development Agreement, prior to development of Phase III, the City and Developer may agree to explore other means of addressing the requirement for the 7.54 acre recreational/open space being located within the ESSCSP. Such alternatives may include funding for offsite recreational/open space within the City as opposed to an on-site reservation of such space. If terms and conditions of an alternative solution are mutually agreed upon by City and Developer, the parties agree to amend the Development Agreement and supporting documentation appropriately. • Condition 92 is amended to read: All required fees, adopted by agencies with jurisdiction over intersections and roadways affected by this Project and identified in the MMRP adopted for this project, must be calculated and collected by affected agencies before the City issues a Certificate of Occupancy for any building for which an application for development has been filed within the Project area. Proof of fee payment must be provided to the Director of Planning and Building Safety. Mitigation Monitoriny, and Reporting Program The MMRP does not require amendment since the traffic mitigation measures already identify paying fair share as an option for improvements at impacted intersections not adjacent to the development (see TRA -3 — 9). Please see Exhibit E for the original MMRP. IV. ENVIRONMENTAL REVIEW An Environmental Impact Report was prepared for the ESSCSP's Environmental Assessment (EA -905) pursuant to 14 California Code of Regulations, Section 15063 ("CEQA guidelines"). The proposed amendments to the DA, MMRP and Conditions of approval will have no possible significant effects and, therefore, no further CEQA analysis is required. V. RECOMMENDATION .m 7 204 Exhibit A Planning Commission Resolution No. 2865 205 RESOLUTION NO. 2865 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF EL SEGUNDO RECOMMENDING THE CITY COUNCIL ADOPT THE FOLLOWING AMENDMENTS RELATED TO THE PHASING OF THE EL SEGUNDO SOUTH CAMPUS SPECIFIC PLAN (ENVIORNMENTAL ASSESSMENT NO. EA -905): AMENDMENT TO DEVELOPMENT AGREEMENT NO. DA -11-02 AND AMENDMENT TO THE CONDITIONS OF APPROVAL FOR THE SITE LOCATED AT 2000-2100 EAST EL SEGUNDO BOULEVARD. The Planning Commission of the City of EI Segundo does resolve as follows: SECTION 1: The Commission finds and declares that: A. On June 10, 2019, the Raytheon Corporation filed a request for an amendment to the EI Segundo South Campus Specific Plan (ESSCSP) (Environmental Assessment No. EA -905) to amend Development Agreement No. DA 11-02 and amend the Conditions of Approval for the 142 - acre Project site located at 2000-2100 East EI Segundo Boulevard; B. The ESSCPS (EA -905) Development Agreement (DA 11-02) and Conditions of Approval were originally approved by the City Council on December 1, 2015. C. The project request was reviewed by the City's Planning and Building Safety Department for, in part, consistency with the General Plan, EI Segundo South Campus Specific Plan and conformity with the ESMC; D. The Planning Commission of the City of EI Segundo held a noticed public hearing on August 1, 2019, to review and consider the staff report prepared for the Project, receive public testimony, and review all correspondence received on the Project; and, E. This Resolution, and its findings, are made, in part, based upon the evidence presented to the Commission at its August 1, 2019, public hearing including. SECTION 2: Factual Findings and Conclusions. The Commission finds that the following facts exist: A. The Project is the EI Segundo South Campus Specific Plan, 142 -acre property at 2000-2100 East EI Segundo Boulevard; B. The surrounding land uses are primarily low and high-rise office buildings to the north (CO and MU -N Zones); a City retention basin and light industrial uses to the south (M-1 and O -S Zones); light industrial uses and the elevated Metro Green Line track and station to the east (M-1 Zone); and SCE high voltage transmission lines, municipal golf course, and west basin municipal water district facility (O -S and P -F Zones) to the west; K ^. C. The proposed amendments to DA 11-02 and Conditions of Approval creates four development phases. SECTION 3: Environmental Assessment. An Environmental Impact Report was prepared for the ESSCSP (EA -905) pursuant to 14 California Code of Regulations, Section 15063 ("CEQA guidelines"). The proposed amendments to the Project DA and Conditions of approval will have no possible significant effects and, therefore, no further CEQA analysis is required. SECTION 4: General Plan Findings. As required under Government Code § 65860, the proposed amendments to the DA, MMRP and Conditions of Approval are consistent with the EI Segundo General Plan as follows: A. The approved ESSCSP was found to be consistent with the General Plan per Resolution 2765. The proposed amendments do not alter any of the General Plan findings made in the original project approval. SECTION 5: Recommendations. The Planning Commission recommends that the City Council approve amendments to the DA and Conditions of Approval for the EI Segundo South Campus Specific Plan (EA -905): SECTION 6: Reliance on Record. Each and every one of the findings and determination in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects and are fully and completely supported by substantial evidence in the record as a whole. SECTION 7: Limitations. The Planning Commission's analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. In all instances, best efforts have been made to form accurate assumptions. SECTION 8: This Resolution will remain effective until superseded by a subsequent resolution. SECTION 9: The Commission secretary is directed to mail a copy of this Resolution to any person requesting a copy. SECTION 10: This Resolution may be appealed within ten calendar days after its adoption. All appeals must be in writing and filed with the City Clerk within this time period. Failure to file a timely written appeal will constitute a waiver of any right of appeal. 2 207 PASSED, APPROVED AND ADOPTED this 1st day of August, 2019. ATTEST: Sam Lee, Secretary APPROVED AS TO FORM: Mark D. Hensley, City Attorney M Ryan Baldino, Chair City of EI Segundo Planning Commission David King, Assistant City Attorney 3 Baldino Newman Hoeschler Keldorf Wingate 208 RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF EL SEGUNDO APPROVING A CONDITIONAL USE PERMIT NO. CUP 17-03 AND SITE PLAN REVIEW NO. SPR 17-01 FOR THE CONSTRUCTION OF SIX NEW BUILDINGS AT 2100-2198 E. EL SEGUNDO BLVD. (EA -1200) The Planning Commission of the City of EI Segundo does resolve as follows: SECTION 1: The Commission finds and declares that: A. On June 25, 2019, CDC Mar Retail I, LLC filed an application for Site Plan Review and Conditional Use Permit ("CUP") for EA -1200, to allow the construction to replace the parking lot formerly used by Raytheon, which is Phase 1 of the EI Segundo South Campus Specific Plan (ESSCSP); B. On August 22, 2019, the Planning Commission conducted a public hearing to receive public testimony and other evidence regarding the applications, including, without limitation, information provided to the Commission by City staff, the applicant and public testimony; C. This Resolution, and its findings, are made, in part, based upon the evidence presented to the Commission at its August 22, 2019, public hearing including, without limitation, the staff report submitted by the Planning and Building Safety Department. D. This Resolution No. Supersedes Resolution No. 2826, approved September 14, 2017. SECTION 2: Factual Findings and Conclusions. The Commission finds that the following facts exist: A. The subject site is located in the EI Segundo South Campus Specific Plan (ESSCSP), at 2100 to 2198 EI Segundo Boulevard. The subject property is a 7.34 -acre multi -use site located on the north side of EI Segundo Boulevard, between Continental Boulevard and Nash Street. B. An application was originally filed on July 26, 2017 by CDC Mar Retail I LLC for Site Plan Review and Conditional Use Permit ("CUP") for EA -1200, to allow the construction to replace the parking lot formerly used by Raytheon, which is Phase 1 of the EI Segundo South Campus Specific Plan (ESSCSP). On September 14, 2017, the Planning Commission approved the Site Plan Review and Conditional Use Permit applications for EA -1200. C. The property is currently improved with a parking lot used by the Raytheon Campus. 209 D. The proposed project includes removing the existing parking lot and constructing six new buildings totaling 65,650 square feet (net) in area to accommodate one 2 -story medical office building, one bank, two restaurant buildings, and two drive-through fast food restaurants. These uses would be operated or maintained and will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity. E. The proposed conditional use will comply with each of the applicable provisions of the ESMC. The proposed conditional use complies with the applicable provisions of ESMC 15-15-5-Q). Queuing lanes accommodate at least eight (8) vehicles and are at least 10 feet wide, per ESMC requirements. SECTION 7- Approvals. Based on the foregoing, the Planning Commission hereby approves Site Plan Review No. SPR 17-01 for the project located at 2100 to 2198 EI Segundo Boulevard, attached as Exhibit B; and approves Conditional Use Permit No. CUP 17-03 to allow two drive-through restaurants, subject to the Applicant's full compliance with the Conditions of Approval listed in Exhibit A-1. SECTION 8: Reliance On Record. Each and every one of the findings and determination in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects and are fully and completely supported by substantial evidence in the record as a whole. SECTION 9: Limitations. The Planning Commission's analysis and evaluation of the project is based on the best information currently available. In all instances, best efforts have been made to form accurate assumptions. SECTION 10: This Resolution will remain effective until superseded by a subsequent resolution. SECTION 11: The Commission secretary is directed to mail a copy of this Resolution to any person requesting a copy. SECTION 12: This Resolution may be appealed within ten (10) calendar days after its adoption. All appeals must be in writing and filed with the City Clerk within this time period. Failure to file a timely written appeal will constitute a waiver of any right of appeal. SECTION 13: Except as provided in Section 12, this Resolution is the Planning Commission's final decision and will become effective on the tenth day after its adoption. 2 210 PASSED, APPROVED AND ADOPTED this 22nd day of August, 2018. Ryan Baldino, Chair City of EI Segundo Planning Commission ATTEST: Sam Lee, Secretary APPROVED AS TO FORM: Mark D. Hensley, City Attorney David King, Assistant City Attorney Baldino Newman Hoeschler KeldorF Wingate 3 211 Exhibit B Development Agreement, No. DA 11-02 212 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY CLERK CITY OF EL SEGUNDO 350 Main Street El Segundo, California 90245 4972 :14'"'I EXEMPT FROM RECORDER'S FEES Pursuant to Government Code § 6103 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF EL SEGUNDO AND RAYTHEON COMPANY 2000 El Segundo Boulevard El Segundo, California 90245 THIS AGREEMENT MUST BE RECORDED WITHIN TEN DAYS OF EXECUTION BY ALL PARTIES HERETO PURSUANT TO THE REQUIREMENTS OF GOVERNMENT CODE § 65868.5 213 TABLE OF CONTENTS 1. Definitions........ .....................:........... 2. Recitals ..................................................... 3. Binding Effect ................ ........... 3.1 Constructive Notice and Acceptance 4972 Page ........................................................ i ....................................................................3 ...................................—...............................4 .......................................................4 3.2 Rights to Transfer....................................................................................................4 3.3 Liabilities Upon Transfer.......................................................................................4 3.4 Reassumption of Rights.............................................................................. ........5 4. Development of the Campus............................................................_..._:...:.......:.:..:.........:.........5 4.1 Entitlement to Develop .....------..............................................................................5 4.2 Permitted Uses, Density, Height and Dedication of Land for Public Purposes ....... 5 4.3 Development Standards...........................................................................................5 4.4 Building Regulations ............................... .... ......................................................5 4.5 Subsequent Rules.....................................................................................................5 4.6 Fees, Exactions, Mitigation Measures, Conditions, Reservations and Dedications 5 4.7 Use of Easements.......................................................................................... 6 4.8 Timing of Development ................................................. ....................... ....6 4.9 Moratorium........................................................................................................ ...7 4.10 Infrastructure.,...... . ..................................................................................7 4.10.1 Infrastructure Capacity...................... . ........................................... ....7 4.10.2 Phasing Flexibility............. ..................... . ....................7 4.10.3 Infrastructure Completion...........................................................................................7 i 214 4972 7:T -.J 4.10 Prevailing Wages......................................................... , ...................7 4.11 Term ....................................... ....... ... .....................................................8 4.12 Term of Map(s) and Other Project Approvals.........................................8 4.13 Satisfaction of Mitigation Measures and Conditions.........................;,........:.....8 4.14 In Lieu Credits................................................................................ ...............8 5. Developer Agreements.................................................................................,:..:......,.........:........8 5.1 General........................................................................................,............................8 5.2 Maintenance Obligations.........................................................................................8 5.3 Sales and Use Tax......................................................................................_.............8 5.4 Title 24 Energy Requirements..............................................................9 6. City Agreements..................................................................................,..............................9 6.1 Expedited Processing.................................................................:.................:...........9 6.2 Processing Cooperation and Assistance..................................................... .........9 6.3 Processing During Third Party Litigation ........................ 6.4 Reimbursement for City's Efforts on Behalf of Developer.................... - . . . . . .10 6.5 City's Efforts to Defend and/or Enforce Multi Agency Agreements................10 7. Traffic Improvements..............................................................................................................10 7.1 Nash Street............... ........................................................10 7.2 Continental Boulevard Access............................................................1 l 7.3 El Segundo Boulevard Improvements .................................. .,............... 11 7.4 E1 Segundo Boulevard Bicycle Path.................... . .......... : ....:.........:......12 7.5 Nash Street Extension Bicycle Lane.....................................................13 7.6 Green Line Station ...................... ........................ ,......................13 7.7 Coral Street Connection ................................................... . ...........14 7.8 Traffic In Lieu Credits. - - - ............................................ . ...................14 M 215 4972 7� 8. Utilities................................................................................... , ............14 9. Recreational Access......................................................................................14 9.1 Non -Raytheon User Access...............................................................14 9.2 Irrevocable Offer to Dedicate Land to City ................. 15 10. Payments After Approval ......................................... . ........................................15 10.1 Six Annual Payments.............................................................................................15 10.2 Year 10 Payment...........................................................................................................15 10.3 Building Permit Fee............................................................................ ....................15 11. Uniform Codes and Standard Specification...........................................................15 12. Demonstration of Good Faith Compliance ................. ....................................................156 12.1 Review of Compliance.....................................................................................16 12.2 Good Faith Compliance...............................................................................16 12.3 Information to be Provided to Developer........................................................16 12.4 Developer's Report....................................................................16 12.5 Notice Of Non -Compliance; Cure Rights.........................................,..............17 12.6 Public Notice of Finding...................................................................................17 12.7 Failure of Periodic Review......................................:.......:....:.:.:.....:.:...............17 13. Excusable Delays........................................................................................................ .........17 14. Default Provisions.................................................... ................................................... -...17 14.1 Default..............................................................................................................17 14.2 Content of Notice of Violation.............................................................. ........18 14.3 Remedies for Breach........................................................................................18 14.4 Resolution of Disputes ............................................. ................... ..........18 14.5 Attorney Fees and Costs...............................................................18 15. Mortgagee Protection..............................................................................................................:18 ff 216 -1v 4972fa 11.1 Mortgage Not Rendered Invalid ....---......................:......................................,.19 11.2 Request for Notice to Mortgagee ................. ............. ..................... I................. 19 11.3 Mortgagee's Time to Cure...............................................................................19 11.4 Cure Rights......................................................................................................19 11.5 Bankruptcy.....................................................................................................19 11.6 Disaffirmation..................................................................................................20 16. Estoppel Certificate................................................................................................. ....... ..._.20 17. Administration of Agreement..................................................................................................20 17.1 Appeal of Determinations.................................................. ...........................20 17.2 Operating Memoranda...............................................................................20 17.3 Certificate of Performance...............................................................................21 18. Amendment or Termination by Mutual Consent.....................................................................21 19. Indemnification/Defense ............................................................................... . ....21 19.1 Indemnification............................................................ ....................21 19.2 Defense of Agreement.....................................................................................21 20. Cooperation in the Event of Legal Challenge........................................................21 20.1 Third Parry Challenges.........................::.......:......:....................21 20.2 Third Party Challenges Related to the Applicability City Laws................22 21. Time of Essence.........................................................,............................. .......... ............ 23 22. Effective Date .................. .. .. .. .23 23. Notices.....................................................................................................................................23 24. Entire Agreement...........................................................................................................24 25. Waiver .............. ...................................................... ...............,,................... ........... --- ........24 26. Ambiguities or Uncertainties.................................................... ....25 27. Supersession of Subsequent Laws of Judicial Action..............................................25 iv 217 4972 JZA 28. Severability..............................................................................................................................25 29. Relationship of the Parties .................................................. .........................25 30. No Third Party Beneficiaries...............................................:...........................25 31. Recordation and Agreement and Amendments......................................................25 32. Cooperation Between City and Developer ........ . . .................................................25 33. Rules of Construction .............................. . 34. Governing Law and Venue .................... . . . ....... . ........ . ........26 35. Counterparts..............................................................................................26 36. Weekend/Holiday Dates................................................................................26 37. Not a Public Dedication .............................................................................26 38. Releases.......................................................................................26 39. Consent......................................................................................:..........27 v 218 4 9 7 2' DEVELOPMENT AGREEMENT This Development Agreement is made and entered into by and between the CITY OF EL SEGUNDO ("City"), a general law city and municipalc,q poration, and RAYTHEON COMPANY ("Developer"), a Delaware corporation, as of this day of r7A , 2016. City and Developer are also individually referred to as "Party" and collectively as "Parties." In consideration of the mutual covenants and agreements contained in this Agreement, City and Developer agree as follows: 1. 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 Agreement. Words and phrases not defined in this Section will have the meaning set forth in this Agreement; the El Segundo Municipal Code; or in common usage. "Agreement" means this Development Agreement between the City and Developer. "Applicable Rules" means: ■ The El Segundo General Plan, as it existed on the Application Date, as modified by the Project Approvals; • The El Segundo Municipal Code, as it existed on the Effective Date, as modified by the Project Approvals; ■ The El Segundo South Campus Specific Plan as adopted; ■ Such other laws, ordinances, rules, regulations, and official policies governing permitted uses of the Campus, density, design, improvement, development fees, and construction standards and specifications applicable to the development of the Campus in force at the time of the Effective Date, which are not in conflict with this Agreement. "Application Date" means December 8, 2011, the date on which the last of the Project Approval applications was deemed complete by the City. "Approved Plans" means a plan for any aspect of the Project, including, without limitation, the Site Plan, signage plans, and landscaping and irrigation plans, which are approved by City in accordance with the Development Standards, Applicable Rules and Project Approvals. "Building Regulations" means those regulations set forth in Title 13 of the El Segundo Municipal Code. "Campus" means that 142.28 acre property located at 2000 El Segundo Boulevard in El Segundo, California more particularly described in attached Exhibit "A," which is incorporated by reference. 219 4972 w "CEQA" means the California Environmental Quality Act (Public Resources Code § 21000, et seq.) including the regulations promulgated thereunder (14 Cal. Code of Regulations §15000, et seg., the "CEQA Guidelines"). "City Council" means the City Council of the City of El Segundo. "Developer" means Raytheon Company and its transferees, assigns and successors in interest. "Development Standards" means the design and development standards that are applicable to the Project. "Director" means the Director of Planning and Building Safety, or designee. "Effective Date" means the date on which the Enabling Ordinance becomes effective in accordance with Government Code § 36937. "SSMC" means El Segundo Municipal Code. "Existing Development" means that development which exists on the Campus on the Effective Date, as more specifically set forth in attached Exhibit "B," which is incorporated by reference. "Enabling Ordinance" means Ordinance No. 1516, approving this Development Agreement. "Future Approvals" means such subsequent discretionary and ministerial entitlements, including permits, which are required to develop the Project in addition to the Project Approvals, and which are applied for by Developer and approved by City. "New Development" means any development constructed within the Specific Plan area after the Effective Date. "Person" must mean a natural person or any entity. "Project" means the development of the Campus in accordance with the Project Approvals. "Project Approvals" means: • Final Environmental Impact Report No. EA -905, as certified by Resolution No, 4958; Mitigation Monitoring Program for Final Environmental Impact Report No. EA - 905, as adopted by Resolution No. 4958; • General Plan Amendment No. 11-01, as approved by Resolution No. 4958 including a change in the Land Use Map; 2 220 4972 '17: El Segundo South Campus Specific Plan No. 11-01, as adopted by Ordinance No. 1516; Zone Change No. 11-02, as approved by Ordinance No. 1516, including a change in the Zoning Map; Y Zone Text Amendment No. 11-01, as approved by Ordinance No. 1516; O Vesting Map No. 71551, as approved by Resolution No. 4958; and a This Agreement. "Specific Plan" or "ESSCSP" means the El Segundo South Campus Specific Plan. "Subsequent Rules" means any changes to the Applicable Rules, including, without limitation, any change by means of an ordinance, initiative, resolution, policy, order or moratorium, initiated or instituted for any reason whatsoever and adopted by the City Council, the Planning Conunission or any other board, agency, commission or department of the City, or any officer or employee thereof, or by the electorate, which would, absent this Agreement, otherwise be applicable to the Campus. "Transferee" means a Person which assumes in whole or in part the rights and obligations under this Agreement with respect to all or a portion of the Campus. "Uniform Codes" means those Uniform Codes adopted by reference in the ESMC in accordance with Government Code §§ 50022.2, et seq. as required by applicable law including, without limitation, Health and Safety Code § 18944.5 and Title 24 of the California Code of Regulations. The Uniform Codes govern building and construction standards including, without limitation, the building, plumbing, electrical, mechanical, grading, sign, and fire standards. 2. Recitals. This Agreement is made with respect to the following facts and for the following purposes, each of which is acknowledged as true and correct by the Parties: 2.1 Pursuant to Government Code § 65865, et seq., City is authorized to enter into a binding contractual agreement with any person having a legal or equitable interest in real property for the development of such property. 2.2 Developer is the owner of the Campus. 2.3 Developer desires to develop the Campus in accordance with the El Segundo South Campus Specific Plan. 2.4 By this Agreement, City desires to obtain the binding agreement of Developer to develop the Campus in accordance with the Project Approvals and Applicable Rules. In consideration thereof, City agrees to limit the future exercise of certain of its governmental and proprietary powers to the extent specified in this Agreement. 221 4972 171 2.5 By this Agreement, Developer desires to obtain the binding agreement of City to permit the development of the Campus in accordance with the Project Approvals and Applicable Rules. In consideration thereof, Developer agrees to waive its rights to challenge legally the restrictions and obligations set forth in this Agreement. 2.6 City and Developer have acknowledged and agreed that the consideration that is to be exchanged pursuant to this Agreement is fair, just and reasonable. 2.7 This Agreement is intended to provide flexible entitlements, within the parameters set forth herein and subject to the terms and conditions hereof, to meet the changing market demands that are likely to occur throughout the Term of this Agreement. 2.8 The Project uses are consistent with the General Plan, as amended through General Plan Amendment No. GPA 11-01. 2.9 Development of the Project will further the comprehensive planning objectives contained within the General Plan, and will result in public benefits including, among others, better circulation in the northeast quadrant of the City. 2.10 All of the Campus is subject to this Agreement. 3. Binding Effect. The burdens of this Agreement are binding upon, and the benefits of the Agreement inure to, each Party and each successive transferee, assign and successor in interest thereto and constitute covenants that run with the land. 3.1 Constructive Notice and Acceptance. Every Person who acquires any right, title or interest in or to any portion of the Campus in which Developer has a legal interest is, and must be, conclusively deemed to have consented and agreed to be bound by this Agreement, whether or not any reference to this Agreement is contained in the instrument by which such person acquired such right, title or interest. 3.2 Rights to Transfer. Developer may assign or transfer in whole or in part its rights and obligations under this Agreement with respect to the Campus, or any portion thereof, to any Transferee at any time during the Term of this Agreement without approval of City, including through provision of a long-term ground lease. For purposes of this Agreement, the Transferee must be considered the "owner" of that portion of the Campus which is covered by such transfer. 3.3 Liabilities 11 on "Transfer. Upon the delegation of the duties and obligations under this Agreement and the sale, transfer or assignment of all or any portion of the Campus, Developer will be released from its obligations under this Agreement with respect to the Campus, or portion thereof, so transferred arising subsequent to the effective date of such transfer, if (i) Developer has provided to City prior or subsequent written notice of such transfer and (ii) Transferee has agreed in writing to be subject to all of the provisions hereof applicable to the portion of the Campus so transferred by executing an Assignment and Assumption Agreement in the form of attached Exhibit "C," which is incorporated by reference. Upon any transfer of any portion of the Campus and the express assumption of Developer's obligations under this Agreement by such Transferee, City agrees to look solely to Transferee for compliance by such Transferee with the provisions of this Agreement as such provisions relate to the portion of the Campus acquired by such Transferee. 222 4972"' Any such Transferee must be entitled to the benefits of this Agreement as "Developer" hereunder and is subject to the obligations of this Agreement applicable to the pareel(s) transferred. A default by any Transferee only affects that portion of the Campus owned by such Transferee and does not cancel or diminish in any way Developer's rights hereunder with respect to any portion of the Campus not owned by such Transferee. The Transferee is responsible for satisfying the good faith compliance requirements set forth in Section 8 below relating to the portion of the Campus owned by such Transferee, and any amendment to this Agreement between the City and a Transferee must only affect the portion of the Campus owned by such Transferee. 3.4 Resumption of Rights. If Transferee defaults with respect to any provision of this Agreement, Developer may, but is not obligated to, resume Transferee's obligations upon written notification to City. 4. Development_ of the CaEnpu . The following provisions, in addition to Applicable Rules, govern the development and use of the Campus. However, nothing affects any Existing Development on the Campus which is allowed to continue in its current location and under its current development standards. 4.1 Entitlement to Develop. The Developer is granted the vested right to develop the Project on the Campus subject to the Applicable Rules, the Project Approvals and any Future Approvals. 4.2 Permitted Uses, Density, Height and Dedication of Land For P€iblic Purposes. The permitted and conditionally permitted uses of the Campus as well as the density or intensity of use, the maximum height and size of buildings and provisions for reservation or dedication of land for public purposes are set forth in the Project Approvals and Applicable Rules. 4.3 Development Standards. The Development Standards applicable to the Campus are set forth in the Project Approvals and Applicable Rules. 4.4 13uildi is Regulations. Nothing in this Agreement precludes City from applying changes occurring from time to time in the Building Regulations, provided that such changes (a) are found by City to be necessary to the health or safety of the citizens of the City, (b) are generally applicable to all similar types of property in the City, and (c) do not prevent or unreasonably delay development of the Project in accordance with this Agreement. 4.5 Subsc cIuenl Rakes. Subsequent Rules cannot be applied by City to any part of the Campus unless Developer gives City written notice of its election to have such Subsequent Rule applied to the Campus, in which case such Subsequent Rule is deemed to be an Applicable Rule. 4.6 Fees. Exactions. Mitigation Measures Conditions Reservations and Dedications. 4.6.1 All fees, exactions, mitigation measures, conditions, reservations and dedications of land for public purposes that are applicable to the Project are set forth in the Project Approvals, the Applicable Rules and this Agreement. 4.6.2 Except as otherwise provided in this Agreement, and specifically excluding fees set by entities not controlled by City that are collected by City, City can only charge and 223 4972 1T', impose those fees and exactions, including, without limitation, dedications and any other fee relating to development or the privilege of developing, which are in effect on a City-wide basis as of the Effective Date. 4.6.3 Developer must pay the impact fees pursuant to City Council Resolution Nos. 4443 and 4687- 4.6.4 This Section cannot be construed to limit the authority of City to charge normal and customary application, processing, and permit fees, including legal and environmental processing costs, for land use approvals, building permits and other similar permits, for Future Approvals, which fees are designed to reimburse City's actual expenses attributable to such application, processing and permitting and are in force and effect on a City-wide basis at such time as applications for such approvals are filed with City. 4.6.5 Nexus/Reasonable Relationship Challenges. Developer consents to, and waives any rights it may have now or in the future to challenge the legal validity of, the conditions, requirements, policies or programs required by this Agreement or Applicable Rules including, without limitation, any claim that they constitute an abuse of the police power, violate substantive due process, deny equal protection of the laws, effect a taking of property without payment of just compensation, or impose an unlawful tax. 4.7 Use of Easements. Notwithstanding the provisions of the Applicable Rules, easements dedicated for vehicular and pedestrian use are perinitted to include easements for underground drainage, water, sewer, gas, electricity, telephone, cable, environmental remediation and other utilities and facilities so long as they do not unreasonably interfere with pedestrian and/or vehicular use. 4.8 T- rn i iiu o f' Develo anent. In I'ardee Constructio:z Co. v. City of Camarillo (Pardee), 37 Cal.3d 465 (1984), the California Supreme Court held that the failure of the parties therein to provide for the timing or rate of development resulted in a later -adopted initiative restricting the rate of development to prevail against the parties' agreement. City and Developer intend to avoid the result in Pardee by acknowledging and providing that Developer has the right, without obligation, to develop the Campus in such order and at such rate and times as Developer deems appropriate within the exercise of its subjective business judgment, subject to the Term of this Agreement, In furtherance of the Parties' intent, as set forth in this Section, no future amendment of any existing City ordinance or resolution, or future adoption of any ordinance, resolution or other action, that purports to limit the rate or timing of development over time or alter the sequencing of development phases, whether adopted or imposed by the City Council or through the initiative or referendum process, applies to the Campus. However, nothing in this Section must be construed to limit City's right to enforce Developer's obligation pursuant to this Agreement to provide all infrastructure required by the Project Approvals and this Agreement. Notwithstanding the above, Developer must be required to build the on-site and off-site infrastructure required for the Project in accordance with the Project Milestones and Thresholds that are listed in Exhibit D, attached hereto and incorporated herein by reference. 224 4972 4.9 Moratorium. No City -imposed moratorium or other limitation (whether relating to the rate, timing or sequencing of the development or construction of all or any part of the Campus, whether imposed by ordinance, initiative, resolution, policy, order or otherwise, and whether enacted by the City Council, an agency of City, the electorate, or otherwise) affecting parcel or subdivision maps (whether tentative, vesting tentative or final), building permits, occupancy certificates or other entitlements to use or service (including, without limitation, water and sewer) approved, issued or granted within City, or portions of City, applies to the Campus to the extent such moratorium or other limitation is in conflict with this Agreement. However, the provisions of this Section do not affect City's compliance with moratoria or other limitations mandated by other governmental agencies or court -imposed moratoria or other limitations. 4.10 Infrastructure. 4.10.1 Infrastructure C.rapaciLy. Subject to Developer's installation of infrastructure in accordance with the requirements of the Project Approvals, this Agreement, and any Future Approvals, City acknowledges that it will have sufficient capacity in its infrastructure, services and utility systems, including, without limitation, traffic circulation, storm drainage, flood control, electric service, sewer collection, sewer treatment, sanitation service and, except for reasons beyond City's control, water supply, treatment, distribution and service, to accommodate the Project. To the extent that City renders such services or provides such utilities, City agrees that it will serve the Project and that there is no restriction on hookups or service for the Project except for reasons beyond City's control. 4.10.2 Infrastructure PlIaSinp, Flexibilit . Notwithstanding the provisions of any phasing requirements in the Project Approvals or any Future Approvals, Developer and City recognize that economic and market conditions may necessitate changing the order in which the infrastructure is constructed. Therefore, City and Developer agree that should it become necessary or desirable to develop any portion of the Project's infrastructure in an order that differs from the order set forth in this Agreement, Developer and City will collaborate and City will permit any modification requested by Developer so long as the modification continues to ensure adequate infrastructure is available to serve that portion of the Project being developed and is in compliance with Section 4.12 of this Agreement. 4.10.3 infrastructure Completion. No building permit, final inspection or certificate of occupancy will be unreasonably withheld, conditioned, or delayed by City if all infrastructure required to serve the portion of the Campus covered by the building permit, final inspection or certificate of occupancy is in place or is suitably guaranteed to be completed (by covenant, bond, letter of credit or otherwise) to the reasonable satisfaction of the City before completion of construction and all of the other relevant provisions of the Project Approvals and any Future Approvals are satisfied. 4.10.4 Prevailing Wages. In the event any infrastructure improvements are paid for in whole or in part out of public funds, as contemplated by Labor Code § 1720, Developer must pay prevailing wages for the construction of such improvements to the extent required by Applicable Law. 225 4972 PM 4.11 Term. The term of this Agreement is ten (10) years from the Effective Date (the "Term"). However, Developer or City is entitled to, by written notice to the other Party before the Agreement's expiration, one (1) five (5) -year extension, provided that the requesting Party is not in material default of this Agreement at such time beyond any applicable period to cure provided for by Section 12 below. Before the expiration of such five (5) -year extension, the Parties may mutually agree to further extensions. In the event of litigation challenging this Agreement, the Term is automatically suspended for the duration of such litigation and resumes upon final disposition of such challenge and any appeal thereof upholding the validity of this Agreement. In the event that a referendum petition concerning this Agreement is duly filed in such a manner that the ordinance approving this Agreement is suspended, then the Term is deemed to commence upon City Council certification of the results of the referendum election approving this Agreement. 4.12 Term of Map(s) and Other Projec Approvals. Pursuant to California Government Code §§ 66452.6(a) and 65863.9, the term of any subdivision or parcel map that has been or in the future may be processed on all or any portion of the Campus and the term of each of the Project Approvals will be extended for a period of time through the scheduled termination date of this Agreement as set forth in Section 4.11 above, including any extensions thereto pursuant to Section 4.11 above. 4.13 Satisfaction of Mitigation Measures and Conditions. In the event that any of the mitigation measures or conditions required of Developer are implemented by others, Developer is conclusively deemed to have satisfied such mitigation measures or conditions, consistent with CEQA. If any such mitigation measures or conditions are rejected by a governmental agency with jurisdiction, Developer may implement reasonably equivalent substitute mitigation, consistent with CEQA, to the City's satisfaction, in lieu of the rejected mitigation measures or conditions. Such substitution is deemed to be a Minor Modification pursuant to the ESSCSP. 4.14 In Lieu Credits. The City must grant Developer in lieu credits, as appropriate, and as specified herein and for those matters set forth on attached Exhibit "E," which is incorporated by reference. Developer Agreements. 5.1 General. Developer must comply, or cause compliance, with: (i) this Agreement; (ii) the Project Approvals including, without limitation, all mitigation measures required by the determination made pursuant to CEQA; and (iii) all Future Approvals for which it is the applicant. 5.2 Maintenance Obligations. Developer must maintain all portions of the Campus visible from a public street and in its possession or control, including improvements thereon, in a clean, neat and orderly manner. Developer's maintenance obligations survive any termination or expiration of this Agreement. 5.3 Sales and Use Tax. 5.3.1 In the event the contract price for any work on the Project is valued at ten million dollars ($10,000,000) or more, Developer agrees to report, on a State Board of Equalization Tax Return, any purchases of tangible personal property made in connection with the finishing of and/or installation of materials, or fixtures for the Project, when such purchases were made without 226 4972 . `.. N sales or use tax due. Developer must indicate the City as a registered job site location on the State Board of Equalization Tax Return. In such event, Developer must also obtain a permit or a sub - permit from the State Board of Equalization indicating the City as the registered job site location, in accordance with Revenue and Taxation Code § 7051.3 or State Board of Equalization Compliance Policy and Procedure Manual (Section 295.060). 5.3.2 Developer further agrees that if Developer retains contractors or subcontractors to perform a portion of work in the Project, and said contracts or subcontracts are valued at ten million dollars ($10,000,000) or more, said contracts or subcontracts must contain the provisions set forth in Section 5.3.1 above. 5.3.3 The Director of Finance of the City is authorized to relieve Developer, and Developer's contractors and subcontractors, from the requirements set forth in this Section 5.3 upon proof to the reasonable satisfaction of the Director of Finance that Developer and/or its contractors or subcontractors have made good faith efforts to obtain said permit or sub -permits, but were denied the same by the State Board of Equalization. 5.4 All new development must have buildings designed to be energy efficient, at least fifteen percent (15%) above the requirements set forth in California Code of Regulations Title 24 in effect at the time that building plans are submitted. 6. City Agreements. 6.1 Expedited Processing. The City must process in an expedited manner all plan checking, excavation, grading, building, encroachment and street improvement permits, Certificates of Occupancy, utility connection authorizations, and other ministerial permits or approvals necessary, convenient or appropriate for the grading, excavation, construction, development, improvement, use and occupancy of the Project in accordance with City's accelerated plan check process under the Applicable Rules. Without limiting the foregoing, if requested by Developer, City agrees to utilize private planners and plan checkers (upon Developer's request and at Developer's cost) and any other available means to expedite the processing of Project applications, including concurrent processing of such applications by various City departments. 6.2 Processing Cooperation and Assistance. To the extent permitted by law, City must reasonably cooperate with Developer in securing any and all entitlements, authorizations, permits or approvals which may be required by any other governmental or quasi -governmental entity in connection with the development of the Project or the Campus. Without limiting the foregoing, City must reasonably cooperate with the Developer in any dealings with federal, state and other local governmental and quasi -governmental entities concerning issues affecting the Campus. City must keep Developer fully informed with respect to its communications with such agencies which could impact the development of the Campus. City must not take any actions to encourage any other governmental or quasi -governmental entities from withholding any necessary approvals and any such contrary actions on the part of the City must be considered a breach of this Agreement by City. 227 A 9 7 2 w . -'A 6.3 Processing During 11ird Party Litigation, The filing of any third party lawsuit(s) against City or Developer relating to this Agreement, the Project Approvals, any Future Approvals or to other development issues affecting any portion of the Campus or the Project must not hinder, delay or stop the development, processing or construction of the Project, approval of applications for any Future Approvals, or issuance of ministerial permits or approvals, unless the third party obtains a court order preventing the activity. City must not stipulate to or cooperate in the issuance of any such order. 6.4 Reimbursement_ for Ciiy's Efforts an Behalf of Developer. To the extent that City, on behalf of Developer, attempts to enter into binding agreements with other entities in order to ensure the availability of certain permits and approvals or services necessary for development of the Project as described in this Agreement, Developer must reimburse City for all costs and expenses incurred in connection with seeking and entering into any such agreement. Any fees, assessments or other amounts payable by City pursuant to any such agreement must be borne by Developer except where Developer notified City in writing, before City entering into such agreement, that it does not desire for City to execute such agreement. 6.5 CiVs Efforts to Defend anti/or 13- 11 Multi Agency Agreements. Except as limited by Section 19. 1, Developer must defend and indemnify — the to the extent set forth in this Agreement — City in any challenge by any person to any such agreement, and must reimburse City for any costs and expenses incurred by City in enforcing any such agreement. Traffic Immovements. 7.1 Nash Street. 7.1.1 At such time that the Nash Street connection is required under the terms of the Agreement, Developer must build the Nash Street extension consistent with the General Plan Secondary Arterial roadway classification and as shown on Vesting Map No. 71551. 7.1.2 The Nash Street extension must be completed before Phase II of Vesting Map No. 71551 is recorded or a certificate of occupancy being issued for any new development which would cause the Phase 1 Development trip cap of 89 a.m. peak hour, 225 p.m. peak hour trips, or 3,775 daily trips to be exceeded. 7.1.3 Developer will receive in lieu credit against City's traffic impact fees for the actual cost of construction of the Nash Street extension. Developer must submit appropriate documentation to City to verify the construction costs. 7.1.4 When the Nash Street extension is complete, Developer must offer for dedication the street and public improvements associated with the street to City (collectively, "Nash Street Improvements"). The City will accept the dedication of the Nash Street improvements if it is constructed in accordance with City standards. 7.1.5 When City accepts the Nash Street extension and improvements, Developer will not be responsible for maintenance of the public street improvements including, without limitation, sidewalks, signs, roadways, street lights, and lighting fixtures. Public use of the Nash Street extension is not permitted until City accepts such dedication. 10 228 4972 7.1.6 Developer agrees to cooperate with City in creating a landscaping and lighting assessment district to cover only the maintenance costs of the landscape and lighting portion of the Nash Street improvements and will not protest the formation of any such district. The costs of the assessment engineer and other direct set-up costs of the assessment district will be included in the assessment costs to be levied against the affected properties. 7.2 Continental Boulevard Public Access. 7.2.1 Developer must build the extension of the Continental Boulevard roadway located on Parcel 25 consistent with the General Plan Secondary Arterial roadway classification (as shown on Vesting Map No. 7155 1) before Phase Il of Vesting Map No. 71551 is recorded. The Developer must build the extension of the Continental Boulevard roadway located on Parcel 21 consistent with the General Plan Collector roadway classification (as shown on Vesting Map No. 7155 1) before Phase III of Vesting Map No. 71551 is recorded. 7.2.2 Continental Boulevard, and the extension thereof, must remain a private roadway, except as specified in Sections 7.2.3 and 7.2.4 below. The private roadway may be fenced, and/or guarded and/or gated. 7.2.3 If at any time buildings along Continental Boulevard are sold, leased, or used by any third party (i) that is not an affiliate of Raytheon; or (ii) does not use or operate the buildings in furtherance of Raytheon's business operations, Developer must provide a public access easement to City for this street. For purposes of this section, an affiliate includes a subsidiary or partner of Raytheon. 7.2.4 Notwithstanding Section 7.2.3, Developer may offer Continental Boulevard to City for dedication. The City will accept the dedication of the Continental Boulevard improvements if it is constructed in accordance with City standards. If City accepts Continental Boulevard and its improvements, Developer will not be responsible for maintenance of the public street improvements including, without limitation, sidewalks, signs, roadways, street lights, and lighting fixtures. 7.2.5 Developer agrees to cooperate with City in creating a landscaping and lighting assessment district to cover only the maintenance costs of the landscape and lighting portion of the Continental Boulevard improvements and will not protest the formation of any such district. The costs of the assessment engineer and other direct set-up costs of the assessment district will be included in the assessment costs to be levied against the affected properties. 7.2.6 Developer agrees to a 20 -year irrevocable offer of dedication to the City of Parcel 26 of Vesting Map No. 71551. This dedication may be accepted by the City at such time the City permits circulation through the adjacent golf course and that portion of Continental Boulevard connecting Parcel 26 and El Segundo Boulevard is made accessible to the public. 7.3 EI Segundo Boulevard hi rovernents. 7.3.1 Developer must complete the El Segundo Boulevard roadway improvements consistent with the General Plan Major Arterial classification and as shown on Vesting Map No. 71551, based on the following phasing criteria: 11 229 4972: 7.3. 1.1 If either Parcel 15 or 16 of Vesting Map No. 71551 is developed, the required roadway improvements must be completed on the El Segundo Boulevard frontage of both Parcels 15 and 16 before City issues a certificate of occupancy for any new building in that area. 7.3.1.2 If Parcel 14 of Vesting Map No. 71551 is developed, the required roadway improvements must be completed on the El Segundo Boulevard frontage of Parcel 14 before City issues a certificate of occupancy for any new building in that area. 7.3.1.3 If Parcels 1, 2, 3, or 4 of Vesting Map No. 71551 are developed, then the required roadway improvements must be completed on the El Segundo Boulevard frontage for all parcels within the Specific Plan area with El Segundo Boulevard frontage before City issues a certificate of occupancy for any new building in such areas. 7.3.2 Developer is responsible for all construction costs relating to the El Segundo Boulevard roadway improvements, including the cost of roadway construction, retaining walls, pole relocation and Class 1 bicycle path (see Section 7.4), except as specified below. 7.3.2.1 Notwithstanding the above, Developer is not responsible for relocation of any infrastructure that is not directly on the El Segundo Boulevard frontage and located within the Campus. The S CE towers at the corner of El Segundo and Sepulveda Boulevards are specifically excluded from Developer's responsibility under this Section 7.3.2. 7.3.2.2 Developer is entitled to receive in lieu credit against City's traffic impact fees for the actual cost of construction of the El Segundo Boulevard improvements. Developer must submit documentation acceptable to City to verify the construction costs. No credit will be given for the value of the land area required for the El Segundo Boulevard widening. 7.3.2.3. Developer's costs will be offset by any grants provided to City for such improvements by any outside agency. City must use its best efforts to seek any and all available grants. 7.3.3 As an alternative to construction, Developer may pay a portion of the required traffic mitigation fees as a lump sum. This lump sum would cover the costs of El Segundo Boulevard improvements located in the plan area within 275 feet east of the Sepulveda Boulevard intersection. This area includes three (3) utility poles Developer has identified as having significant relocation costs. This lump sum would be required before the first building permit for new development in the Campus is issued. The amount of the lump sum will be based on a revised estimate of the costs associated with improvements within the El Segundo Boulevard right-of-way where Developer would like City to proceed with improvements instead of the Developer. 7.4 El Segundo Boulevard Bicycle Path. 7.4.1 Developer must construct a Class 1 bicycle path on El Segundo Boulevard during the same period in which the El Segundo Boulevard Improvements discussed in Section 7.3 above are installed, subject to the following: 12 230 4972 `W 7.4.1.1 For lots with frontage on that portion of El Segundo Boulevard located east of the future extension of Continental Boulevard and west of the future extension of Nash Street, the bicycle path may be located within the required building setback areas as long as a five foot distance is maintained between the bicycle path and any building or structure. 7.4.1.2 In order to facilitate the 4"' travel lane under the Green -Line light rail overpass, the El Segundo Boulevard bike path must be routed south of the overpass supports and through the Metro Station area. An easement must be provided over Parcel 14 of Vesting Map No. 71551 to allow this routing. No building setback modifications are required due to such rerouting as long as a five foot distance between the bicycle path and any building is maintained. 7.4.1.3 Developer is not responsible for the cost of relocation any infrastructure that is not directly on the El Segundo Boulevard frontage of the Campus, including without limitation, the SCE tower at the corner of El Segundo and Sepulveda Boulevards, 7.4.2 Developer is entitled to receive in lieu credit against City's traffic impact fees for the actual cost of construction of the El Segundo Boulevard bicycle path. Developer must submit documentation acceptable to City to verify the construction costs. No credit will be given for the value of the land area under the El Segundo Boulevard bike path. 7.4.3 Developer's costs will be offset by any grants provided to the City of El Segundo by any outside agency relating to the construction of the bicycle path along El Segundo Boulevard. 7.5 Nash Street Extension Bicycle Lane. 7.5.1 At such time as the Nash Street Extension must be completed pursuant to Section 7.1.2 above, Developer must construct a Class II bicycle lane in each direction of the Nash Street extension. 7.5.2 The Class II bicycle lane will be integrated into the Nash Street roadway. 7.5.3 Construction costs for the bicycle lane are considered to be part of the overall Nash Street roadway extension and are Developer's responsibility. 7.5.4 The width of the Class II bicycle lanes are included within the overall Right of Way width of the Nash Street Extension. This is illustrated in the Vesting Map No. 71551 exhibit entitled "Typical Section: Secondary Arterial Street." No additional public right-of-way will be required for the bicycle lane. 7.6 Green Line Station. 7.6.1 Developer must pay $75,000 towards the construction of bicycle parking facilities at or adjacent to the Metro Green Line El Segundo Station. The $75,000 payment must be made before City issues a certificate of occupancy for any building included in Phase Il. Developer is entitled to receive in lieu credit against City's traffic impact fees for this payment. 13 231 4972 !"A 7.6.2 Developer must allow a pedestrian easement across one or a combination of Parcels 13, 14 and/or 24 of Vesting Map No. 71551 to allow direct pedestrian access to the Green Line station. The walkway must be completed before a certificate of occupancy is issued for any building on Parcel 13 or 14. The walkway must be paved and compliant with ADA requirements with a minimum width of five feet. 7.7 Coral Circle Connection. Developer agrees to provide City with a 20 -year irrevocable offer of dedication of Parcels 20 and 22 of Vesting Map No. 71551. This dedication may be accepted by City at such time City enters agreements with adjacent landowners located at 363-365 Coral Circle and 401 Coral Circle to obtain public street access across their property for a roadway to connect Nash Street to Coral Circle. The offer of dedication will allow for fee simple ownership of Parcels 20 and 22 to be transferred to the owners of 363-365 Coral Circle and 401 Coral Circle, and a public street dedication for a portion of the two parcels to the City for a roadway consistent with the "Local Commercial Street" General Plan Circulation Element Street Classification. 7.8 Traffic Fee In Lieu Credits. Except as otherwise specified herein, Developer will be entitled to in lieu credits against the City's traffic impact fees for all required traffic mitigation measures within the City of El Segundo's jurisdiction that are constructed or paid by Developer. Developer is not entitled to any in lieu credits for mitigation measures outside of the City's jurisdiction. 8. Utilities 8.1 City must maintain all City -owned public utilities located in public or private streets within the Campus. Any utilities located on private property must be the responsibility of Developer, or its successor in interest. 8.2 City is contemplating a capacity upgrade in the El Segundo sewer line. 8.2.1 Up to 2,142,457 gross square feet of development, the total amount of new development allowed by the Specific Plan, must be able to access sewer service in the El Segundo Boulevard sewer trunk line after completion of the sewer line upgrade provided that Developer contributes twenty-five percent (25%) up to a maximum amount of $375,000.00 toward completion of the sewer upgrade. 8.2.2 Developer must make its contribution at the time the City awards the sewer improvement project, but no later than December 31, 2018, for Developer to obtain access to the El Segundo Boulevard sewer trunk line. 8.2.3 Upon payment, City must reserve a portion of the available capacity in the existing fifteen inch (15") line up to a net increase of 30,212 gallons per day for Developer and Developer is entitled to connect to the existing line through a temporary sewer connection. Developer is entitled to make a permanent connection to the upgraded line once the sewer capacity upgrade project is completed. Recreational Access. 14 232 4972 9.1 The Specific Plan provides for 7.54 acres of land to be used for Open Space and Recreational purposes. This land must remain private and only available to Raytheon employees. However, should Developer sell more than twenty percent (20%) of ESSCSP Campus Area (i.e., at least 28.44 acres), to a user other than Raytheon or a Raytheon affiliate, Developer must provide non -Raytheon or Raytheon affiliated employees within the ESSCSP area with permanent access to the 7.54 -acre recreational area within the Campus. The access must be formalized through agreements between Raytheon and the purchaser(s) of the property. 9.2 Within 30 days of approval of a land transfer of the recreational/open space area to an alternative parcel and before a building permit may be issued on Parcel 11, the Developer must record a 20 -year irrevocable offer of dedication of a 7.54 acre recreational/open space area to the City of El Segundo, in a form approved by the City Attorney, for future potential park purposes if located on any of the lots (Parcels 1, 2, 3, 4, 7, 8, 13 or 14 of Vesting Map No. 71551) and outside the Raytheon security fenced perimeter. 10. Payments after AvDrovaI. 10.1 Six Annual Payments. The Developer must make one annual payment of $500,000 and five subsequent annual payments of $700,000 each to the City. Payments will start on March 31, 2016 and occur annually on March 315, with the final payment due on March 31, 2021. These payments will be deposited to the City's General Fund and may be used for any general purpose identified by the City Council in its sole discretion. The total amount of the six payments is $4,000,000. 10.2 Payment in Year 10. 1f the Nash Street extension, identified in Section 7.1, is not completed within 10 years of the Effective Date, then the Developer is required to make a $5,000,000 payment not later than the anniversary date that the Ordinance became effective (e.g., if the Ordinance became effective December 1, 2015, then payment would be due not later than December 2, 2025). This payment will be deposited to the City's General Fund and may be used for any general purpose identified by the City Council in its sole discretion. 10.3 Building Permit Fee. Before building permits are issued for any new development (not existing at time of project approval) in the project area, the Developer must pay a $0.50 per gross square -foot fee. All revenue from this fee will be deposited to the City's General Fund and may be used for any general purpose identified by the City Council in its sole discretion. 11. Uniform Codes and Standard Specifications 11.1 Nothing in this Agreement prevents City from applying Uniform Codes to the Project provided that the provisions of any such Uniform Code: 11.1.1 apply to the Project only to the extent that such code is in effect on a City wide basis; 11.1.2 with respect to those portions of any such Uniform Code that have been adopted by City without amendment, be interpreted and applied in a manner consistent with the interpretation and application of such code pursuant to California Law. 15 233 4972 wM 11.2 Nothing in this Agreement prevents City from applying to the Project "standard specifications" for public improvements (e.g., streets, storm drainage, parking lot standards, driveway widths) as the same may be adopted or amended from time to time by City, provided tha[ the provisions of any such standards and specifications apply only to the extent they are in effect on a Citywide basis and do not conflict with standards contained in the Specific Plan. As they concern the Project or the Project Site, to the extent any City Law or other City ordinance, regulation, standard, or specification conflicts with the Specific Plan, the Specific Plan controls unless otherwise provided herein. 11.3 State and Federal Law. As provided in Government Code § 65869.5, in the event that state or federal laws or regulations, enacted after the Vesting Date ("Changes in the Law") prevent or preclude compliance with one or more provisions of this Agreement, such provisions of the Agreement will be, by operation of law, modified or suspended, or performance thereof delayed, as and to the extent necessary to comply with such Changes in the Law. In the event any state or federal resources agency (i.e., California Department of Fish and Game, U.S. Fish and Wildlife Service, U.S. Army Corps of Engineers, Regional Water Quality Control Board/State Water Resources Control Board), in connection with its final issuance of a permit or certification for all or a portion of the Project, imposes requirements ("Permitting Requirements") that require modifications to the Project, then the parties will work together in good faith to incorporate such changes into the Project; provided, however, that if Developer appeals or challenges any such Permit Requirements, then the parties may defer such changes until the completion of such appeal or challenge. 12. Demonstration of Good Faith Conip Iiance 12.1 Review of Compliance. In accordance with Government Code § 65865.1, this Section 12 and the Applicable Rules, once each year, on or before each anniversary of the Effective Date ("Periodic Review"), the Director will review the extent of Developer's good faith substantial compliance with the terms and provisions of this Agreement as well as the performance by the City of its obligations under this Agreement. 12.2 Good Faith Compliance. During each Periodic Review, Developer must demonstrate that, during the preceding twelve (12) month period, that it has been in good faith compliance with this Agreement. For purposes of this Agreement, the phrase "good faith compliance" means that Developer has demonstrated that it acted in a commercially reasonable manner (taking into account the circumstances which then exist) and in good faith in and has substantially complied with Developer's material obligations under this Agreement. 12.3 Cil +y Report - Information to be Provided to Developer. At least fourteen (14) days before the annual anniversary of the Effective Date the City must deliver to Developer a copy of all staff reports prepared in connection with a Periodic Review, any prior staff reports generated during the review period, written comments from the public and, to the extent practical, all related exhibits concerning such Periodic Review ("City Report"). 12.4 Developer's_ Report. No later than the annual anniversary of the Effective Date, Developer must submit a written status report to the Director addressing the good faith compliance 16 234 4972 '_1"A issue and any issues raised by the City Report provided to Developer in accordance with Section 12.3 above. 12.5 Notice Of Non-Conipliance. (:urcFights. If, after reviewing the Developer's Report, the Director reasonably concludes on the basis of substantial evidence that as to any parcel or parcels comprising the Campus, Developer has not demonstrated that it is in good faith compliance with this Agreement the Director may issue and deliver to Developer a written Notice of Violation as set forth in Section 14 below. 12.6 Public Notice of Finding. Any appeal of the Director's determination (including any appeal by Developer) must be filed within twenty (20) days following such decision. Filing such an appeal tolls the cure period specified in the Notice of Violation. Notwithstanding Section 17, an appeal regarding the Notice of Violation must be heard directly by the City Council at a duly -noticed public hearing and the City Council must issue a final decision. Not in limitation of the forgoing, Developer retains the right to challenge City's issuance of any final decision pursuant to Code of Civil Procedure § 1094.5 without complying with the procedures set forth in Section 13.4 below. 12.7 Failure of Periodic Review. The City's failure to review, at least annually, compliance by Developer with the terms and conditions of this Agreement does not constitute nor can it be asserted by any Party as a breach by any other Party of this Agreement. If the City fails to provide the City Report by the Effective Date, Developer will be deemed to be in good faith compliance with this Agreement. 13. Excusable Delays. Performance by any Party of its obligations in this Agreement is excused during any period of "Excusable Delay," as defined, provided that the Party claiming the delay gives notice of the delay to the other Party as soon as reasonably possible after the same has been ascertained. For purposes hereof, Excusable Delay means delay that directly affects, and is beyond the reasonable control of, the Party claiming the delay, including without limitation: (a) civil commotion; (b) riot; (c) strike, picketing or other labor dispute; (d) shortage of materials or supplies; (e) damage to work in progress or delays by reason of fire, flood, including flood due to rains, earthquake, windstorm, or other casualty; (f) reasonably unforeseeable delay caused by a reasonably unforeseeable restriction imposed or mandated by a governmental entity other than City; (g) litigation brought by a third party attacking the validity of a Project Approval, a Future Approval or any other action necessary for development of the Campus; (11) delays caused by any default by the other Party; or (i) delays due to the presence or remediation of hazardous materials. The Term of this Agreement, including any extensions, will automatically be extended by any period of Excusable Delay. 14. Default Provisions. 14.1 Default. Either Party to this Agreement will have breached this Agreement if it materially breaches any of the provisions of this Agreement and the same is not cured within the time set forth in a written notice of violation (the "Notice of Violation") from the non -breaching Party to the breaching Party, which period of time is not less than ten (10) days following receipt of written notice from the non -breaching Party for monetary defaults, and not less than sixty (60) days following receipt of written notice from the non -breaching Party for non -monetary defaults 17 235 4 9 7 2 from the date that the notice is deemed received, provided if the breaching Party cannot reasonably cure a non -monetary default within the time set forth in the notice, then the breaching Party will not be in default if it commences to cure the default within such time limit and diligently effects such cure thereafter. If City determines that a default may have occurred, City may choose to terminate this Agreement in which case it must give written notice to Developer of its intention to terminate and comply with the notice and public hearing requirements of Government Code §§ 65867 and 65868. At the time and place set for the hearing on termination, Developer will be given an opportunity to be heard. If the City Council finds based upon the evidence that Developer is in breach of this Agreement, the City Council may modify or terminate this Agreement; provided, however, if Developer initiates a resolution of dispute in accordance with the provisions of Section 14.4 below within sixty (60) days following the City Council's determination that Developer is in breach of this Agreement, the City Council's decision to modify or terminate this Agreement is stayed until the issue has been resolved through informal procedures, mediation, or court proceedings. 14.2 Content of Notice of Violation. Every Notice of Violation must state with specificity that it is given pursuant to this Section of the Agreement, the nature of the alleged breach, (including references to the pertinent provisions of this Agreement), the portion of the Campus involved, and the manner in which the breach may be satisfactorily cured. Notice must be given in accordance with Section 23 hereof. 14.3 Remedies Agreement are limited to breach of this Agreement performance. for Breach. The Parties agree that the remedies expressly set forth in by City or Developer are limited 1 the remedies for breach of this this subsection. The remedies for D injunctive relief and/or specific 14.4 ltcsoiution of Disputes. City and Developer agree to attempt to settle any claim, dispute or controversy arising from this Agreement through consultation and negotiation in good faith and in a spirit of mutual cooperation. If those attempts fail, the dispute may be mediated by a mediator chosen jointly by City and Developer within thirty (30) days after notice by one of the parties demanding non-binding mediation. Neither party may unreasonably withhold consent to the selection of a mediator, and City and Developer will share the cost of the mediation equally. The parties may agree to engage in some other form of non-binding alternate dispute resolution ("ADR") procedure in lieu of mediation. Any dispute that cannot be resolved between the parties through negotiation or mediation within two months after the date of the initial demand for non- binding mediation may then be submitted to a court of competent jurisdiction in the County of Los Angeles, California. 14.5 Attorneys Fees and Costs. Each party to this Agreement agrees to waive any entitlement of attorneys' fees and costs incurred with respect to any dispute arising from this Agreement. The parties will each bear their own attorneys' fees and costs in the event of any dispute. 15. Mortgagee Protection. This Agreement does not prevent or limit the Developer, in any manner, at Developer's sole discretion, from encumbering the Campus or any portion thereof or any improvements thereon by any mortgage, deed of trust or other security device. City acknowledges that the lender(s) providing such financing ("Mortgagee") may require certain 18 236 X972 .: Agreement interpretations and agrees, upon request, from time to time, to meet with Developer and representatives of such lender(s) to provide within a reasonable time period City's response to such requested interpretations. City will not unreasonably withhold its consent to any such requested interpretation, provided that such interpretation is consistent with the intent and purposes of this Agreement. Any Mortgagee of a mortgage or a beneficiary of a deed of trust or any successor or assign thereof, including without limitation the purchaser at a judicial or non judicial foreclosure sale or a person or entity who obtains title by deed -in -lieu of foreclosure on the Campus must be entitled to the following rights and privileges: 15.1 Mortgage Not (tendered Invalid. Neither entering into this Agreement nor a breach of this Agreement will defeat, render invalid, diminish, or impair the priority of the lien of any mortgage or deed of trust on the Campus made in good faith and for value. No Mortgagee has an obligation or duty under this Agreement to perform Developer's obligations, or to guarantee such performance, before taking title to all or a portion of the Campus. 15.2 Re nest for Notice to Mort a gee. The Mortgagee of any mortgage or deed of trust encumbering the Campus, or any part thereof, who has submitted a request in writing to the City in the manner specified herein for giving notices, is entitled to receive a copy of any Notice of Violation delivered to the Developer. 15.3 Mart ga ee's Time to Cure. City must provide a copy of any Notice of Violation to the Mortgagee within ten (10) days of sending the Notice of Violation to Developer. The Mortgagee has the right, but not the obligation, to cure the default for a period of sixty (60) days after receipt of such Notice of Violation or such longer period of time as may be specified in the Notice. Notwithstanding the foregoing, if such default is a default which can only be remedied by such Mortgagee obtaining possession of a Campus, or any portion thereof, and such Mortgagee seeks to obtain possession, such Mortgagee has until sixty (60) days after the date of obtaining such possession to cure or, if such default cannot reasonably be cured within such period, to commence to cure such default, provided that such default is cured no later than one (1) year after Mortgagee obtains such possession. 15.4 Cure Rights. Any Mortgagee who takes title to all of the Campus, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or a deed in lieu of foreclosure, will succeed to the rights and obligations of Developer under this Agreement as to the Campus or portion thereof so acquired; provided, however, in no event is such Mortgagee liable for any defaults or monetary obligations of Developer arising before acquisition of title to the Campus by such Mortgagee, except that any such Mortgagee is not entitled to a building permit or occupancy certificate until all delinquent and current fees and other monetary or non -monetary obligations due under this Agreement for the Campus, or portion thereof acquired by such Mortgagee, have been satisfied. 15.5 Bankruptcy. If any Mortgagee is prohibited from commencing or prosecuting foreclosure or other appropriate proceedings in the nature of foreclosure by any process or injunction issued by any court or by reason of any action by any court having jurisdiction of any bankruptcy or insolvency proceedings involving Developer, the times specified in Section 14.3 above will be extended for the period of the prohibition, except that any such extension cannot extend the Term of this Agreement. 19 237 4972r � '''"A 15.6 Disaffirmation. If this Agreement is terminated as to any portion of the Campus by reason of (i) any default or (ii) as a result of a bankruptcy proceeding, this Agreement is disaffirmed by a receiver, liquidator, or trustee for Developer or its property, City, if requested by any Mortgagee, will negotiate in good faith with such Mortgagee for a new development agreement for the Project as to such portion of the Campus with the most senior Mortgagee requesting such new agreement. This Agreement does not require any Mortgagee or the City to enter into a new development agreement pursuant to this Section. 16. EstovRel Certificate. At any time and from time to time, Developer may deliver written notice to City and City may deliver written notice to Developer requesting that such Party certify in writing that, to the knowledge of the certifying Party: (i) this Agreement is in full force and effect and a binding obligation of the Parties; (ii) this Agreement has not been amended, or if amended, the identity of each amendment; and (iii) the requesting Party is not in breach of this Agreement, or if in breach, a description of each such breach. The Party receiving such a request must execute and return the certificate within thirty (30) days following receipt of the notice. The failure of City to deliver such a written notice within such time constitutes a conclusive presumption against City that, except as may be represented by Developer, this Agreement is in full force and effect without modification, and that there are no uncured defaults in the performance of the Developer. The Director is authorized to execute, on behalf of City, any Estoppel Certificate requested by Developer. City acknowledges that a certificate may be relied upon by successors in interest to Developer who requested the certificate and by holders of record of deeds of trust on the portion of the Campus in which that Developer has a legal interest. 17. Administration of Agreement. 17.1 Appeal of Determinations. Any decision by City staff concerning the interpretation or administration of this Agreement or development of the Campus in accordance herewith may be appealed by Developer to the Planning Commission, and thereafter, if necessary, to the City Council pursuant to the El Segundo Municipal Code. Developer cannot seek judicial review of any staff decision without first having exhausted its remedies pursuant to this Agreement. Final determinations by the City Council are subject to judicial review subject to the restrictions and limitations of California law. 17.2 Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between City and Developer. During the Term of this Agreement, clarifications to this Agreement and the Applicable Rules may be appropriate with respect to the details of performance of City and Developer. If and when, from time to time, during the Term of this Agreement, City and Developer agree that such clarifications are necessary or appropriate, they will effectuate such clarification through a memoranda approved in writing by City and Developer (the "Operating Memoranda"), which, after execution, will be attached hereto and become part of this Agreement and the same may be further clarified from time to time as necessary with future written approval by City and Developer. Operating Memoranda are not intended to and do not constitute an amendment to this Agreement but are mere ministerial clarifications, therefore public notices and hearings are not required. The City Attorney is authorized, upon consultation with, and approval of, the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment hereof which requires compliance with the provisions of Section 18 below. The authority to enter 20 238 4972 "-0 into such Operating Memoranda is hereby delegated to the Director, and the Director is hereby authorized to execute any Operating Memoranda hereunder without further City Council action. 17.3 Certificate of Performance. Upon the completion of the Project, or the completion of development of any parcel within the Project, or upon completion of performance of this Agreement or its earlier revocation and termination, City must provide Developer, upon Developer's request, with a statement ("Certificate of Performance") evidencing said completion or revocation and the release of Developer from further obligations hereunder, except for any ongoing obligations hereunder. The Certificate of Performance must be signed by the appropriate agents of Developer and City and be recorded in the official records of Los Angeles County, California. Such Certificate of Performance is not a notice of completion as referred to in Civil Code § 3093. 18. Amendment or Termination by Mutual Consent,. Except as otherwise set forth herein, this Agreement may only be amended or terminated, in whole or in part, by mutual consent of City and Developer, and upon compliance with the provisions of Government Code §§ 65867 and 65867.5. 19. Indemnification/Defense. 19.1 Indemnification. Developer agrees to indemnify and hold the City harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising from the City's approval of Project, this Agreement, Developer's performance of this Agreement, and all procedures with approving this Agreement (collectively, "Discretionary Approvals"), except to the extent such is a result of the City's sole negligence or intentional misconduct. Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the Discretionary Approvals, Developer agrees to defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise, except to the extent such action is a result of the City's sole negligence or intentional misconduct. For purposes of this Section "the City" includes the City of El Segundo's elected officials, appointed officials, officers, and employees. 19.2 Defense of Agreement. If City accepts Developer's indemnification and defense as provided in Section 19.1 above, City agrees to and must timely take all actions which are necessary or required to uphold the validity and enforceability of this Agreement, the Discretionary Approvals, Project Approvals, Development Standards and the Applicable Rules. This Section 19 will survive the termination of this Agreement. 20. Cooperation in the Event of Le gal Chailen =e. 20.1 Third Party Chal lenges. In the event of any administrative, legal or equitable action or other proceeding instituted by any person or entity not a party to the Agreement challenging the validity of any provision of this Agreement, challenging any Approval, or challenging the sufficiency of any environmental review of either this Agreement or any Approval under CEQA (each a "Third Party Challenge"), each party must cooperate in the defense of such Third Party Challenge, in accordance with this Section. Developer agrees to pay City's costs of defending a Third Party Challenge, including all court costs and reasonable attorney's fees expended by City 21 239 4972 " 'J (including the time and cost of the City Attorney) in defense of any Third Party Challenge, as well as the time of City's staff spent in connection with such defense. Developer may select its own legal counsel to represent Developer's interests in any Third Party Challenge at Developer's sole cost and expense. City agrees that it will not enter into a settlement agreement to any Third Party Challenge without Developer's written consent. Developer's obligation to pay City's costs in the defense of a Third Party Challenge does not extend to those costs incurred on appeal unless otherwise authorized by Developer in writing. 20.2 Third Parte Challenges Mated to the Applicability City Laws. The provisions of this Section will apply only in the event of a legal or equitable action or other proceeding, before a court of competent jurisdiction, instituted by any person or entity not a party to the Agreement challenging the applicability to the Project or Project Site of a conflicting City Law (a "Third Party Enforcement Action"): 20.2.1 In the event of a Third Party Enforcement Action, City must (i) promptly notify Developer of such action or proceeding, and (ii) stipulate to Developer's intervention as a party to such action or proceeding unless Developer has already been named as a respondent or real party in interest to such action or proceeding. In no event will City take any action that would frustrate, hinder, or otherwise complicate Developer's efforts to intervene, join or otherwise participate as a party to any Third Party Enforcement Action. As requested by Developer, City must use its best efforts to ensure that Developer is permitted to intervene, join or otherwise participate as a party to any Third Party Enforcement Action. If, for any reason, Developer is not permitted to intervene, join or otherwise participate as a party to any Third Party Enforcement Action, the parties to this Agreement agree to cooperate, to the maximum extent permitted by law, in the defense of such action or proceeding. For purposes of this Section, the required cooperation between the parties includes, without limitation, developing litigation strategies, preparing litigation briefs and other related documents, conferring on all aspects of the litigation, developing settlement strategies, and, to the extent permitted by law, jointly making significant decisions related to the relevant litigation, throughout the course thereof. 20.2.2 City's costs of defending any Third Party Enforcement Action, including all court costs, and reasonable attorney's fees expended by City (including the time and cost of the City Attorney) in defense of any Third Party Enforcement Action, as well as the time of City's staff spent in connection with such defense (the "Enforcement Action Defense Costs), will be paid in accordance with this Agreement. Notwithstanding the forgoing, in no event will the Enforcement Action Defense Costs extend to, nor will Developer or the Project be obligated to pay, any costs incurred on appeal unless otherwise authorized by Developer in writing; 20.2.3 City must not enter into a settlement agreement or take any other action to resolve any Third Party Enforcement Action without Developer's written consent. City cannot, without Developer's written consent, take any action that would frustrate, hinder or otherwise prevent Developer's efforts to settle or otherwise resolve any Third Parry Enforcement Action. 20.2.4 Provided that City complies with this Section and provided that Developer is a party to the relevant Third Party Enforcement Action, Developer agrees to be bound by any final judgment (i.e., following all available appeals) arising out of a Third Party Enforcement Action and further agrees that no default under this Agreement will arise if such final judgment 22 240 '4972 requires City to apply to the Project or Project Site a City Law that conflicts with Applicable Rules or this Agreement. 21. Time of Essence. Time is of the essence for each provision of this Agreement of which time is an element. 22. Effective Date. This Agreement becomes operative on the Effective Date. 23. Notices. Any notice that a party is required or may desire to give the other must be in writing and may be sent by: i) personal delivery; or ii) by deposit in the United States mail, postage paid, registered or certified mail, return receipt requested; or iii) by overnight delivery using a nationally recognized overnight courier, providing proof of delivery; or iv) by facsimile or electronic delivery, evidenced by confirmed receipt, addressed as follows (subject to the right of a party to designate a different address for itself by notice similarly given): If to City: City of El Segundo 350 Main Street El Segundo, California 90245 Attention: City Manager Phone: 310 524-2301 Fax: 310 322-7137 E -Mail: gcarpenter@elsegundo.org With a Copy to: City of El Segundo 350 Main Street El Segundo, California 90245 Attention: Director of Planning and Building Safety Phone: 310 524-2346 Fax: 310 322-4167 E-mail: slee@elsegundo.org With a Copy to: City of El Segundo 350 Main Street El Segundo, California 90245 Attention: Planning Manager Phone: 310 524-2340 Fax: 310 322-4167 With a Copy to: Hensley Law Group 2600 W. Olive Avenue, Suite 500 Burbank, California 91505 Attention: Mark D. Hensley, Esq. Phone: 818/333-5120 Fax: 818/333-5121 23 241 4972 E -Mail: mhensley@hensleylawgroup.com If to Developer: Raytheon Company 2000 El Segundo Boulevard Mail Station S 158 El Segundo, California 90245 Attention: Director of Facilities and Real Estate Phone: 310/647-8880 Fax: 310/647-9348 E -Mail: scott_pozza@raytheon.com With a Copy to: Raytheon Company 2000 El Segundo Boulevard Mail Station -5175 El Segundo, California 90245 Attention: Senior Manager of Real Estate Phone: 310/647-2567 Fax: 310/647-9348 E -Mail: aadamsl@raytheon.com With a Copy to: Raytheon Company 870 Winter Street Waltham, MA 02451 Attention: Real Estate Department Phone: 781/522-3062 Fax: 781/522-6465 Email: jerry_a_cellucci@raytheon.com Any notice given by mail is deemed to have been given as of the date of delivery (whether accepted or refused) established by United States Post Office, return receipt, or the overnight carrier's proof of delivery, as the case may be. Notices given in any other manner are effective only if and when received by the party to be notified between the hours of 8:00 a.m. and 5:00 p.m., local time of the recipient, of any business day with delivery made after such hours deemed received the following business day. A party's address may be changed by written notice to the other party effective upon actual receipt of such notice. After a transfer of all or a portion of the Campus pursuant to Sections 3.2 and 3.3, Developer must be copied on all correspondence whether by City or Transferee relating to such transferred property. 24. Entire Agreement. This Agreement contains the entire agreement between the Parties regarding the subject matter hereof, and supersedes in its entirety all prior agreements or understandings, oral or written. This Agreement cannot be amended, except as expressly provided herein 25. Waiver. No waiver of any provision of this Agreement constitutes a waiver of any other provision, whether or not similar; nor must any such waiver constitute a continuing or subsequent 24 242 waiver of the same provision. No waiver is binding, unless it is executed in writing by a duly authorized representative of the Party against whom enforcement of the waiver is sought. 26. Amhibuities car tlncertaiittics. The parties hereto have mutually negotiated the terms and conditions of this Development Agreement and this has resulted in a product of the joint drafting efforts of both parties. Neither party is solely or independently responsible for the preparation or form of this Agreement. Therefore, any ambiguities or uncertainties are not to be construed against or in favor of either party. 27. Supersession of Subsequent Laws of Judicial Action. The provisions of this Agreement must, to the extent feasible, be modified or suspended as may be necessary to comply with any new law or decision issued by a court of competent jurisdiction, enacted or made after the effective date which prevents or precludes compliance with one or more provisions of this Agreement. Immediately after enactment of any such new law, or issuance of such decision, the parties must meet and confer in good faith to determine the feasibility of any such modification or suspension based on the effect such modification or suspension would have on the purposes and intent of this Agreement. 28. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement is effective to the extent the remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 29. Relationship of the Parties. Each Party acknowledges that, in entering into and performing under this Agreement, it is acting as an independent entity and not as an agent of any other Party in any respect. Nothing contained herein or in any document executed in connection herewith must be construed as creating the relationship of partners, joint ventures or any other association of any kind or nature between City and Developer, jointly or severally. 30. No Third PartyLieneficiaries. This Agreement is made and entered into for the sole benefit of the Parties and their successors in interest. No other person or party must have any right of action based upon any provision of this Agreement. 31. Recordation of Agreement and Amendments. This Agreement and any amendment thereof must be recorded with the County Recorder of the County of Los Angeles by the City Clerk of City. 32. Cooperation Between City and Developer. City and Developer will execute and deliver to the other all such other and further instruments and documents as may be reasonably necessary to carry out the purposes of this Agreement. Upon satisfactory performance by Developer, and subject to the continuing cooperation of the Developer, City will commence and in a timely manner proceed to complete all steps necessary for the implementation of this Agreement and development of the Project or Campus in accordance with the terms of this Agreement. 33. Rules of Construction. The captions and headings of the various sections and subsections of this Agreement are for convenience of reference only, and they do not constitute a part of this Agreement for any other purpose or affect interpretation of the Agreement. Should any provision 25 243 4972 M M of this Agreement be found to be in conflict with any provision of the Applicable Rules or the Project Approvals or any Future Approvals, the provisions of this Agreement control. 34. Governin , Law and Venue. This Agreement is made, entered into, and executed in the County of Los Angeles, California, and the laws of the State of California govern its interpretation and enforcement. Any action, suit or proceeding related to, or arising from, this Agreement must be filed in the appropriate court having jurisdiction in the County of Los Angeles. 35. Counterparts. This Agreement may be executed in multiple counterparts, each of which must be deemed an original, but all of which constitute one and the same instrument. 36. Weekend/Holiday Dates. Whenever any determination is to be made or action to be taken on a date specified in this Agreement, if such date falls upon a Saturday, Sunday or other holiday specified in Government Code § 6700, including the entire day on Good Friday, the date for such determination or action must be extended to the first business day immediately thereafter. 37. Not a Public Dedication. Except as otherwise expressly provided herein, nothing herein contained is a gift or dedication of the Campus, or of the Project, or any portion thereof, to the general public, for the general public, or for any public use or purpose whatsoever, it being the intention and understanding of the Parties that this Agreement be strictly limited to and for the purposes herein expressed for the development of the Project as private property. Developer has the right to prevent or prohibit the use of the Campus, or the Project, or any portion thereof, including common areas and buildings and improvements located thereon, by any person for any purpose which is not consistent with the development of the Project. Any portion of the Campus conveyed to the City by the Developer as provided herein can be held and used by the City only for the purposes contemplated herein or otherwise provided in such conveyance, and the City will not take or permit to be taken (if within the power or authority of the City) any action or activity with respect to such portion of the Campus that would deprive the Developer of the material benefits of this Agreement, or would in any manner interfere with the development of the Project as contemplated by this Agreement. 38. Releases. City agrees that upon written request of Developer and payment of all fees and performance of the requirements and conditions required by Developer by this Agreement, the City must execute and deliver to Developer appropriate release(s) of further obligations imposed by this Agreement in form and substance acceptable to the Los Angeles County Recorder's Office or as otherwise may be necessary to effect the release. 26 244 4972 :;-A 39. Consent. Where the consent or approval of City or Developer is required or necessary under this Agreement, the consent or approval will not be unreasonably withheld, delayed or conditioned. IN WITNESS WHEREOF, Developer and City of El Segundo have executed this Development Agreement on the date first above written. CITY: CITY OF EL SEGUNDO, a municipal corporation By: hmwthv� Suzan Fuentes Mayor ATTEST: r p I'r• cW ave ', 4ty C- erk APPROVED AS TO FORM: MARK D. HENS EY, City Attorney BY N ` Karl H. Berger, A-eit City Attorney DF,VFT ,OPF,R RAYTHEON COMP LOW 27 J. Moore t' Vice resident -Business Services 245 4972 !'rte EXHIBIT A CAMPUS DESCRIPTION THAT PORTION OF SECTION 18, TOWNSHIP 3 SOUTH, RANGE 14 WEST, IN THE RANCHO SAUSAL REDONDO, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON THE MAP FILED IN CASE NO. 11629, SUPERIOR COURT OF SAID COUNTY ON JUNE 21, 1890, IN THE OFFICE OF THE COUNTY CLERK OF SAID COUNTY, A COPY OF SAID MAP APPEARING IN THE FILES OF THE COUNTY SURVEYOR OF SAID COUNTY AS CLERK'S FILED MAP NO. 218, BOUNDED AS FOLLOWS: BOUNDED ON THE NORTH BY THE NORTH LINE OF SAID SECTION 18; BOUNDED ON THE EAST BY THE WESTERLY LINE AND THE NORTHERLY PROLONGATION THEREOF OF TRACT NO. 26556, AS SHOWN ON MAP RECORDED IN BOOK 675 PAGES 93 TO 94 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; BOUNDED ON THE SOUTHEAST BY THE NORTHWESTERLY LINE OF THE 80 FOOT STRIP OF LAND DESCRIBED IN THE DEED TO PACIFIC ELECTRIC RAILWAY CO., RECORDED MAY 27, 1913 AS INSTRUMENT NO. 210 IN BOOK 5750 PAGE 43 OF DEEDS, RECORDS OF SAID COUNTY AND BOUNDED ON THE SOUTHWEST BY THE NORTHEASTERLY LINE OF THE LAND DESCRIBED AS PARCEL 2 IN THE DEED TO SOUTHERN CALIFORNIA EDISON COMPANY, RECORDED MARCH 6, 1930 AS INSTRUMENT NO. 535 IN BOOK 9840 PAGE 33, OFFICIAL RECORDS OF SAID COUNTY. EXCEPT THEREFROM, ALL OIL, GAS AND OTHER HYDROCARBONS, GEOTHERMAL RESOURCES AS DEFINED IN SECTION 6903 OF THE CALIFORNIA PUBLIC RESOURCES CODE AND ALL OTHER MINERALS, WHETHER SIMILAR TO THOSE HEREIN SPECIFIED OR NOT, WITHIN OR THAT MAY BE PRODUCED FROM THE PROPERTY BELOW A DEPTH OF FIVE HUNDRED (500) FEET, AS RESERVED BY DEED EXECUTED BY CHEVRON U.S.A. INC., A CORPORATION, RECORDED ON NOVEMBER 28, 1978 AS INSTRUMENT NO. 78-1317577, WHICH ALSO RECITES, "PROVIDED, HOWEVER, THAT ALL RIGHTS AND INTEREST IN THE SURFACE OF THE PROPERTY AND THE LAND MASS OF THE PROPERTY TO A DEPTH OF FIVE HUNDRED (500) FEET ARE HEREBY CONVEYED TO GRANTEE, NO RIGHT OR INTEREST OF ANY KIND THEREIN, EXPRESS OR IMPLIED, BEING EXCEPTED OR RESERVED TO GRANTOR EXCEPT AS HEREINAFTER EXPRESSLY SET FORTH." ASSESSOR'S PARCEL NOs. 4138-014-047 AND 4138-014-013 kaI 246 4972 'To EXHIBIT B EXISTING DEVELOPMENT Building Use Net Square Footage 1,055,479 E-1 E-2 Office, Lab/R&D, Warehouse Office, Lab/R&D, Warehouse 41,518 35,137 E-3 Office, Lab/R&D, Warehouse E-4 Office, Lab/R&D, Warehouse 642,871 24,865 2,261 E-5 Office, Lab/R&D, Warehouse E-6 -----— ..... .... Office E-7 Office, Lab/R&D, Warehouse 54,924 E-20 Storage 7,076 4,500 2,330 1,530 2,100 E-21 Office, Warehouse E-23 Restrooms E-24 Recreation Rain Shelter — Rain Shelter 1,874,591 mm 247 EXHIBIT C Recording Requested By and When Recorded Mail To: Raytheon Company [address and attention] ASSIGNMENT AND ASSUMPTION AGREEMENT This ASSIGNMENT AND ASSUMPTION AGREEMENT ("Agreement") is made and entered into by and between Raytheon Company, ("Assignor"), and a ("Assignee"). RECITALS A. The City of El Segundo ("City") and Assignor entered into that certain Development Agreement dated , 2016 (the "Development Agreement"), with respect to the real property located in the City of El Segundo, State of California more particularly described in Exhibit "A" attached hereto (the "Project Site"), and B. Assignor has obtained from the City certain development approvals and permits with respect to the development of the Project Site, including without limitation, approval of for the Project Site (collectively, the "Project Approvals"). C. Assignor intends to sell, and Assignee intends to purchase that portion, of the Project Site more particularly described in Exhibit "B" attached hereto (the "Transferred Property"). D. In connection with such purchase and sale, Assignor desires to transfer all of the Assignor's right, title, and interest in and to the Development Agreement and the Project Approvals with respect to the Transferred Property. Assignee desires to accept such assignment from Assignor and assume the obligations of Assignor under the Development Agreement and the Project Approvals with respect to the Transferred Property. THEREFORE, the parties agree as follows: 1. Assignment. Assignor hereby assigns and transfers to Assignee all of Assignor's right, title, and interest in and to the Development Agreement and the Project Approvals with respect to the Transferred Property. Assignee hereby accepts such assignment from Assignor. 2. Assumption. Assignee expressly assumes and agrees to keep, perform, and fulfill all the terms, conditions, covenants, and obligations required to be kept, performed, and fulfilled by Assignor under the Development Agreement and the Project Approvals with respect to the' Transferred Property, including without limitation those obligations specifically allocated to the Transferred Parcel as set forth on Exhibit "C" attached hereto. C-1 248 3. Effective Date.. The, execution by City of the attached receipt for this Agreement must be considered as conclusive proof of delivery of this Agreement and of the assignment and assumption contained herein. This Agreement must be effective upon its recordation in the Official Records of Los Angeles County, California, provided that Assignee has closed the purchase and sale transaction and acquired legal title to the Transferred Property. 4. Remainder of Pro'ect. Any and all rights or obligations pertaining to such portion of the Project Site other than the Transferred Property are expressly excluded from the assignment and assumption provided in Sections 1 and 2 above. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth next to their signatures below. Date: Date: "ASSIGNOR" RAYTHEON COMPANY By: Its: By: Its: "ASSIGNEE" a By: Its: C-2 249 X9%2 -Aj RECEIPT BY CITY The attached ASSIGNMENT AND ASSUMPTION AGREEMENT is received by the City of El Segundo on this _ day of , STATE OF CALIFORNIA ) SS: COUNTY OF ) On CITY OF EL SEGUNDO Director of Planning and Building Safety 20, before me, a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature STATE OF CALIFORNIA ) SS: COUNTY OF ) (Seal) On , 20_, before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. C-3 250 WITNESS my hand and official seal. Signature C-4 (Seal) 49/2 .,...:�1 251 49/2 EXHIBIT D PROJECT MILESTONES AND THRESHOLDS Project Item Threshold or Milestone Rec uired Action 6 annual payments. First First annual payment is due Total payment of $4,000,000 payment of $500,000 and five on March 31, 2016. The over six years payable in six subsequent payments of final payment is due on annual payments. $700,000 each. All payments March 31, 2021. to the City's General Fund. Payment of $5,000,000 to the If the Nash Street Roadway Total payment of $5,000,000 City's General Fund ten years Extension is not completed payable in its entirety 10 years after project approval. within 10 years of the after project approval. Effective Date, then a $5,000,000 payment is due 10 years after project approval. $0.50 per gross square foot The $0.50 per gross square- Payment of 0.50 per gross fee for all new development foot fee is required before square foot fee to the City's (floor area not existing on the issuance of City building I General Fund before issuance site on the project approval permits for any new floor of building permits. date) is required. area on the pToject site. Intersection Improvements- Before Certificate of Proof of Payment of all Mitigation Measures TRA -1 Occupancy is issued for any applicable fair share through TRA -9 building in ESSCP Phase 11 mitigation fees must be (buildings in project area provided to the Director of adding trips in excess of Planning and Building Safety Phase I Peak Period Trip cap and Director of Public Works. of 225 trips) Nash Street Roadway Before Certificate of Completion of street and all Extension, including Class 1I Occupancy is issued for any associated public bicycle lane building in ESSCP Phase II improvements. (buildings in project area adding trips in excess of Dedication of the Nash Street Phase I Peak Period Trip cap Improvements to the City. of 225 trips) 252 4 9 7 2 ..: Continental Boulevard Before any building located Developer must provide a Extension along Continental Boulevard dedication or public access is sold, leased, or used by easement to City for any third party not an Continental Boulevard. affiliate of Raytheon. Parcel 26 Within 30 days of the 20 -year irrevocable offer to effective date of the City Dedicate Council ordinance approving the ESSCSP. Parcels 20 and 22 Within 30 days of the 20 -year irrevocable offer to effective date of the City dedicate Council ordinance approviny,the ESSCSP. El Segundo Boulevard Before a certificate of Required roadway Improvements, including occupancy is issued for any improvements must be Class I bicycle path building on Parcel 15 or 16 completed on the El Segundo of Vesting Map No. 71551. Boulevard frontage of Parcels 15 and 16 El Segundo Boulevard Before a certificate of Required roadway Improvements, including occupancy is issued for any improvements must be Class I bicycle path building on Parcel 14 of completed on the El Segundo Vesting Map No. 71551. Boulevard frontage of Parcel 14 El Segundo Boulevard Before a certificate of Required roadway Improvements, including occupancy is issued for any improvements must be Class I bicycle path building on Parcels 1, 2, 3 or completed on the El Segundo 4 of Vesting Map No. Boulevard frontage for all 71551. parcels within the Specific Plan area with El Segundo Boulevard frontage, Green Line Station Bicycle Before Certificate of Confirmation that the $75,000 Parking Facilities contribution Occupancy is issued for any contribution has been building in ESSCP Phase II transferred to either the City (buildings in project area or LACMTA. adding trips in excess of Phase I Peak Period Trip cap of 89 a.m or 225 pm trips or 3775 daily trips). D-2 253 4972 17A Green Line Station Pedestrian Before Certificate of Complete construction of a Easement Occupancy is issued for any paved walkway at least five building on Parcel 13 or 14 feet in width and compliant of Vesting Map No. 71551. with ADA requirements. To obtain access to the El Developer must make its Contribute 25% of the cost of Segundo Boulevard City contribution at the time the the El Segundo sewer trunk sewer trunk line for new City awards the sewer line up -grade up to a development in the ESSCSP improvement project, but no maximum of $375,000. area. later than December 31, 2018. Non -Raytheon employee If 28.44 acres of the Specific Access must be provided to access to 7.54 acre Plan area is sold to user that the recreational area for all Recreational Area. is not Raytheon or a persons employed within the Raytheon affiliated Specific Plan area. Access company. must be formalized through agreements between Raytheon and owners of land within the Specific Plan area. Transfer of 7.54 recreational If the 7.54 acre recreational Raytheon Company must area to the City for use as a area is located outside of the record a 20 year offer of public park. Raytheon facility's secured dedication for future potential perimeter (south or east of park purposes if the recreation the Nash Street Extension or area is located on Parcels 1, 2, west of Continental 3, 4, 7, 8, 13, or 14 of Vesting Boulevard). Map No. 71551, or other parcels as indicated in the Conditions of Approval. D-3 254 EXHIBIT E FEE/IN-LIEU CREDITS Project Item Construction Cost of the Nash Street Extension and Associated Improvements El Segundo Boulevard Improvements, including Class I bicycle path Intersection Improvements within the City of El Segundo Environmental Impact Report Mitigation Measures TRA -1 to TRA -5 Bicycle Parking Facilities for the Metro Green Line El Segundo Station 4972 .:.. Credit Traffic Impact Mitigation Fee credit for the actual cost of construction. Appropriate documentation verifying costs must be provided and accepted by the Citv. Traffic Impact Mitigation Fee credit for the actual cost of construction. Appropriate documentation verifying costs must be provided and accepted by the Ci Traffic Impact Mitigation Fee credit for the required fair share fee paid to the City of El Segundo. i $ 75,000 payment may be credited against Traffic Impact Mitigation Fee. D-4 255 Exhibit C First Amendment to the Development Agreement 10 256 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY CLERK CITY OF EL SEGUNDO 350 Main Street El Segundo, California 90245 EXEMPT FROM RECORDER'S FEES Pursuant to Government Code § 6103 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF EL SEGUNDO AND RAYTHEON COMPANY THIS AGREEMENT MUST BE RECORDED WITHIN TEN DAYS OF EXECUTION BY ALL PARTIES HERETO PURSUANT TO THE REQUIREMENTS OF GOVERNMENT CODE § 65868.5 257 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This First Amendment to Development Agreement ("First Amendment") is made and entered into by and between the CITY OF EL SEGUNDO ("City"), a general law city and municipal corporation, and RAYTHEON COMPANY ("Developer"), a Delaware corporation, as of this day of , 2019. City and Developer are also individually referred to as "Party" and collectively as "Parties." RECITALS WHEREAS, the Parties entered into a Development Agreement ("Agreement") on or about the 24th day of March, 2016 with respect to the real property identified on Exhibit A hereto; and WHEREAS, the Parties now desire to amend the Agreement with this First Amendment to further specify phasing of the Project and the timing of certain Project improvements and/or conditions; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, City and Developer agree as follows: 1. Section 1 of the Agreement ("Definitions") shall be amended to include the following definitions: "Phase I" means the development of any new structure or improvement on any portion of either Lot 15 or 16 which are depicted on Exhibit F hereto. "Phase II" means the development of any new structure or improvement on any portion of Lot 7, 8, 13, 14, 19, 20, 22, 23, or 24 which are depicted on Exhibit F hereto. "Phase III" means the development of new structure or improvement on any portion of Lot: 1, 2, 3, 4, 25, or 26 which are depicted on Exhibit F hereto. "Phase IV" means the development of any structure or improvement on any portion of Lot 5, 6, 9, 10, 11, 12, 17, 18, or 21 which are depicted on Exhibit F hereto. 2. Section 4.10.2 ("Infrastructure Phasing Flexibility") is hereby deleted. 3. Section 4.10.3 ("Infrastructure Completion") is amended to read as follows: "No building permit or final inspection will be unreasonably withheld, conditioned, or delayed by City. However, no certificate of occupancy shall be issued for any building until all public or private infrastructure that will serve it or is required to be constructed pursuant to this Agreement is constructed by or caused to be constructed by the Developer and inspected, approved and/or accepted by the Public Works Director and Building Official, or their designees." 4. The first sentence of Section 4.11 ("Term") is hereby amended to read as follows: "The term of this Agreement is fifteen (15) years from the Effective Date (the "Term")." 258 5. Section 7.1.2 ("Nash Street") is hereby amended to read as follows: "The Nash Street extension must be constructed, inspected, approved and/or accepted by the Public Works Director and Building Official, and/or their designees prior to the issuance of any certificate of occupancy for any new structure or improvement within Phase II, III or IV or for any new structure or improvement which would cause the Phase I Development trip cap of 89 a.m. peak hour, 225 p.m. peak hour trips, or 3,775 daily trips to be exceeded." 6. Section 7.1.4 ("Nash Street) is hereby amended to read as follows: "When the Nash Street extension is complete Developer must offer for dedication the street and public improvements associated with the street to City (collectively, "Nash Street Improvements"). The City will accept the dedication of the Nash Street improvements if it is constructed in accordance with City standards and as noted in 7.1.2." 7. Section 7.2.1 ("Continental Boulevard Public Access") is hereby amended to read as follows: "Prior to the issuance of any Certificate of Occupancy for new structures within Phase III, Developer must build that portion of the extension of Continental Boulevard roadway that is to be located on Parcel 25 in a manner consistent with the Secondary Arterial and Collector roadway classifications, as well as the transition between them, as shown on Vesting Map No. 71551. Prior to the issuance of any Certificate of Occupancy for any new construction or improvements that result in a net increase in square footage or a change in use within Phase IV, the Developer must build the extension of Continental Boulevard roadway that is to be located on Parcel 21 in a manner consistent with the Collector roadway classification as shown on Vesting Map No. 71551. Parcel 25 must be built prior to, or concurrent with Parcel 21." 8. The following Section 7.9 is hereby added to the Agreement: "7.9 Trans ortation and Traffic Mitigation Measures "Fair Share". When noted in the Mitigation, Monitoring, and Reporting Program's Mitigation Measures TRA -1 through 9 inclusive, the term "fair share" shall be determined by dividing the number of PM peak hour trips produced by the individual development seeking a Certificate of Occupancy by the total Project PM peak hour trips Ceiling as noted in City Council Ordinance No. 1516, Exhibit D "Conditions of Approval" (3,120); multiplied by the total construction value of the TRA -1 through 9 improvements that permit "fair share" contributions as opposed to actual construction, as submitted by a State -licensed Civil Engineer and accepted and approved by the City Engineer." 9. Section 9 ("Recreational Access") is hereby amended to read as follows: "9.1 The Specific Plan provides for 7.54 acres of land to be used for Open Space and Recreational purposes. This land must remain private and only available to Raytheon employees. However, should Developer sell more than twenty percent (20%) of ESSCSP Campus Area (i.e., at least 28.44 acres and not including parcels for which an irrevocable offer of dedication is required to be made to the City which are located in Phases I through IV), to a user other than Raytheon or a Raytheon affiliate, Developer must provide non -Raytheon or Raytheon affiliated employees within the ESSCSP area with permanent access to the 7.54 -acre recreational area within 2 259 the Campus. The access must be formalized through agreements between Raytheon and the purchaser(s) of the property. 9.2 Within 30 days of approval of a land transfer of the recreational/open space area to an alternative parcel and before a building permit may be issued on Parcel 11, the Developer must record a 20 -year irrevocable offer of dedication of a 7.54 acre recreational/open space area to the City of El Segundo, in a form approved by the City Attorney, for future potential park purposes if located on any of the lots (Parcels 1, 2, 3, 4, 7, 8, 13 or 14 of Vesting Map No. 71551) and outside the Raytheon security fenced perimeter. 9.3 The Developer acknowledges that under Sections 9.1 and 9.2, the City's strong preference is that the 7.54 acre recreational / open space be located outside Developer's security fence perimeter, so that the recreational / open space area may be accessed by the public, and that the land be developed by the Developer before the offer of dedication is recorded. However, as an alternative to the requirements of Sections 9.1 and 9.2, prior to development of Phase III, the City and Developer may agree to explore other means of addressing the requirement for the 7.54 acre recreational / open space being located within the ESSCSP. Such alternatives may include funding for offsite recreational / open space within the City as opposed to an on-site reservation of such space. If terms and conditions of an alternative solution are mutually agreed upon by City and Developer in their respective sole discretion, the parties shall amend the Agreement and supporting documentation appropriately." 10. The following addresses shall be used for Section 23 ("Notices") and may be changed from time to time as provided for in the Agreement: If to City: City of El Segundo 350 Main Street EI Segundo, California 90245 Attention: City Manager Phone: 310 524-2301 Fax: 310 322-7137 E -Mail: smitnick tr,elsegundo.org With a Copy to: City of El Segundo 350 Main Street El Segundo, California 90245 Attn: City Clerk With a Copy to: City of El Segundo 350 Main Street El Segundo, California 90245 Attention: Director of Planning and Building Safety Phone: 310 524-2346 Fax: 310 322-4167 E-mail: slee@elsegundo.org 260 With a Copy to: City of El Segundo 350 Main Street El Segundo, California 90245 Attention: Planning Manager Phone: 310 524-2340 Fax: 310 322-4167 E -Mail: gmcclain@elsegundo.org With a Copy to: Hensley Law Group 2600 W. Olive Avenue, Suite 500 Burbank, California 91505 Attention: Mark D. Hensley, Esq. Phone: 818/333-5120 Fax: 818/333-5121 E -Mail: mhensley@hensleylawgroup.com If to Developer: Raytheon Company 2000 El Segundo Boulevard Mail Station 5158 El Segundo, California 90245 Attention: Director of Facilities and Real Estate Phone: 310/647-8880 Fax: 310/647-9348 E -Mail: scott_pozza@raytheon.com With a Copy to: Raytheon Company 870 Winter Street Waltham, MA 02451 Attention: Real Estate Department Phone: 781/522-3062 Fax: 781/522-6465 Email: jerry_a_cellucci@raytheon.com 11. Exhibit "D" is hereby deleted as it was a summary of requirements that are set forth elsewhere in this Agreement and the Project Approvals. 12. Except with respect to the specific changes made in this First Amendment, the entire Agreement shall remain in full force and effect and not be amended or superseded by this First Amendment. Furthermore, each party represents and warrants that to its knowledge that the other party has fulfilled those obligations that have matured as of the date of this First Amendment. The individuals and parties executing the Agreement below, respectively warrant and represent that they have the authority to execute this Agreement. 261 IN WITNESS WHEREOF, Developer and City of El Segundo have executed this Development Agreement on the date first above written. CITY: DEVELOPER: CITY OF EL SEGUNDO, RAYTHEON COMPANY a municipal corporation Drew Boyles, Mayor By: Its: ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: Mark Hensley, City Attorney 262 EXHIBIT A CAMPUS DESCRIPTION THAT PORTION OF SECTION 18, TOWNSHIP 3 SOUTH, RANGE 14 WEST, IN THE RANCHO SAUSAL REDONDO, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON THE MAP FILED IN CASE NO. 11629, SUPERIOR COURT OF SAID COUNTY ON JUNE 21, 1890, IN THE OFFICE OF THE COUNTY CLERK OF SAID COUNTY, A COPY OF SAID MAP APPEARING IN THE FILES OF THE COUNTY SURVEYOR OF SAID COUNTY AS CLERK'S FILED MAP NO. 218, BOUNDED AS FOLLOWS: BOUNDED ON THE NORTH BY THE NORTH LINE OF SAID SECTION 18; BOUNDED ON THE EAST BY THE WESTERLY LINE AND THE NORTHERLY PROLONGATION THEREOF OF TRACT NO. 26556, AS SHOWN ON MAP RECORDED IN BOOK 675 PAGES 93 TO 94 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; BOUNDED ON THE SOUTHEAST BY THE NORTHWESTERLY LINE OF THE 80 FOOT STRIP OF LAND DESCRIBED IN THE DEED TO PACIFIC ELECTRIC RAILWAY CO., RECORDED MAY 27, 1913 AS INSTRUMENT NO. 210 IN BOOK 5750 PAGE 43 OF DEEDS, RECORDS OF SAID COUNTY AND BOUNDED ON THE SOUTHWEST BY THE NORTHEASTERLY LINE OF THE LAND DESCRIBED AS PARCEL 2 IN THE DEED TO SOUTHERN CALIFORNIA EDISON COMPANY, RECORDED MARCH 6, 1930 AS INSTRUMENT NO. 535 IN BOOK 9840 PAGE 33, OFFICIAL RECORDS OF SAID COUNTY. EXCEPT THEREFROM, ALL OIL, GAS AND OTHER HYDROCARBONS, GEOTHERMAL RESOURCES AS DEFINED IN SECTION 6903 OF THE CALIFORNIA PUBLIC RESOURCES CODE AND ALL OTHER MINERALS, WHETHER SIMILAR TO THOSE HEREIN SPECIFIED OR NOT, WITHIN OR THAT MAY BE PRODUCED FROM THE PROPERTY BELOW A DEPTH OF FIVE HUNDRED (500) FEET, AS RESERVED BY DEED EXECUTED BY CHEVRON U.S.A. INC., A CORPORATION, RECORDED ON NOVEMBER 28, 1978 AS INSTRUMENT NO. 78-1317577, WHICH ALSO RECITES, "PROVIDED, HOWEVER, THAT ALL RIGHTS AND INTEREST IN THE SURFACE OF THE PROPERTY AND THE LAND MASS OF THE PROPERTY TO A DEPTH OF FIVE HUNDRED (500) FEET ARE HEREBY CONVEYED TO GRANTEE, NO RIGHT OR INTEREST OF ANY KIND THEREIN, EXPRESS OR IMPLIED, BEING EXCEPTED OR RESERVED TO GRANTOR EXCEPT AS HEREINAFTER EXPRESSLY SET FORTH." ASSESSOR'S PARCEL NOs. 4138-014-050, 4138-014-051, 4138-014-052 AND 4138-014-053 6 263 J E F z z z z 0 c3 EL SEGUNDO EXHIBIT F � z 0 m BOULEVARD + + + + + + + + + + + + 0 x '- NOTA x + + + + + + + + + + + PART 0 + + + + + + + + + + + 3 + + + 25 16 15 x 000000 x + + + + + + ++ %+. 0 xxx000x xx + 2 + + + + + + -4 + x 000000x0 x2� + + + + + + + + + + . . .... .... ... . ..... .. x 0x141000 00.. + + + t + + + + + ........ .... --- • - x xxux�l�xxr 0x0 + + + + + + + + + + + + + + + +. . . ..... + . . . . ... . ... . . . . .'. ., x '/, ?' / pG + + + + + + + + + + + t + + + + + + ...... .... 17 .. xx x 000x0 x + +RAA .,\ tip, Eli NOT A [z + + + + + + + .........' ...... . .... ... ........... _'.... 0 xxx x PART �� + + + + + x 0 0 x0 19 y+ + + + Q 24; x x0 7 + p + + + . . . . . . . . . . . . . . . . . x71 Y. + + t . . . . . . . . - . . . . . - - - .. x 7 + 2 25 ..... 5 ...... ...PHASE IV ............ .... . + ............. x + ............. .... x ...... ........................ ... ...... isoy21. ._......... ....... .......... A 22 1- ��:• .. .... _ _ - u2Qn ... •10•.•.;•0. 19 x 0r • 1. 'J. x 15,71 PRIVATE STREET '•r. 0 r, x x 8 0 x x 0x0 'F '/.xxx x'l,xx NOTA x0xxxxxxxxxxxx x , xxx PART 000 00 ., .xxx �G •xxxx0000000x .0 fir.0xxx QW E •�0x0x0x0x.x0x00xz0 O�$ON .,<xxxx,xxxxx0 � Ricyr or, W,4 ® PHASE I - PHASE II [+++ PHASE III PHASE IV ,, ,, + El 264 Exhibit D Conditions of Approval for Reso. No. 4958 and Ord. No. 1516 11 265 CITY COUNCIL RESOLUTION NO. 4958 EXHIBIT A CITY COUNCIL ORDINANCE NO. 1516 EXHIBIT D CONDITIONS OF APPROVAL In addition to all applicable provisions of the EI Segundo Municipal Code ("ESMC"), the Raytheon Company, agrees to comply with the following provisions as conditions for the City of EI Segundo's approval of Environmental Impact Report for Environmental Assessment No. EA -905, General Plan Amendment and General Plan Map Amendment No. GPA 11-01, Specific Plan No. SP 11-01, Zone Change and Zoning Map Amendment No. ZC 11-01, Zone Text Amendment No. ZTA 11-01, Development Agreement No. DA 11-02, and Subdivision No. SUB 11-02 for Vesting Tentative Map (VTM) No. 71551 ("Project Conditions"). Planninci and Building Safety Deoartn�ent Before building permits are issued, the applicant must obtain all the necessary approvals, licenses and permits and pay all the appropriate fees as required by the City. 2. The applicant must comply with all mitigation measures identified in the Final Environmental Impact Report prepared for the Project. A Mitigation Monitoring and Reporting Program (MMRP) was prepared as part of the environmental review for the project and is attached as Exhibit "I'" to this Resolution. The mitigation measures of the MMRP are incorporated into these conditions of approval by reference. All mitigation measures and conditions of approval must be listed on the plans submitted for plan check and the plans for which a building permit is issued. 3 Before the City issues building permits located on sites within the ESSCSP, the applicant must submit site specific landscape and irrigation plans to the Planning and Building Safety Department and the Parks and Recreation Department for review and approval to demonstrate compliance with the City's Water Conservation regulations and Guidelines for Water Conservation in Landscaping (ESMC §§10-2-1, et seq.). The landscaping and irrigation must be completely installed before the City issues a final Certificate of Occupancy. 4. The applicant must build the Nash Street roadway extension and associated public improvements in accordance with Section 7.1 of the Development Agreement. The design and construction of the Nash Street roadway extension is subject to review and approval by -1- PON the Director of Public Works and Director of Planning and Building Safety. 5 The applicant must cooperate with the City in creation of a landscaping and lighting assessment district for the Nash Street Extension in accordance with Section 7.1.6 of the Development Agreement. 6. The applicant must build the Continental Boulevard Roadway Extension in accordance with the EI Segundo South Campus Specific Plan and Section 7.2 of the Development Agreement. 7 The applicant must cooperate with the City in creation of a landscaping and lighting assessment district for the Continental Boulevard Extension in accordance with Section 7.2.5 of the Development Agreement if a dedication of the Continental Boulevard roadway extension and associated improvements is accepted by the City, 8 The applicant must record a 20 -year irrevocable offer of dedication of Parcel 26 of Tentative Vesting Map No. 71551 in accordance with the EI Segundo South Campus Specific Plan and Section 7.2.6 of the Development Agreement. Before recordation, the irrevocable offer to dedicate must be reviewed and approved by the Director of Planning and Building Safety, the Director of Public Works and the City Attorney. 9. The applicant must complete the EI Segundo Boulevard roadway and associated right-of-way improvements in accordance with Section 73 of the Development Agreement. The design and construction of the EI Segundo roadway and associated improvements is subject to review and approval by the Director of Public Works and Director of Planning and Building Safety. 10. The applicant must construct a Class I bicycle path on EI Segundo Boulevard in accordance with the EI Segundo South Campus Specific Plan and Section 7A of the Development Agreement. 11 The applicant must construct Class II bicycle lanes in the Nash Street Extension in accordance with the El Segundo South Campus Specific Plan and Section 7.5 of the Development Agreement. 12. The applicant must pay $75,000 towards the construction of bicycle parking facilities at or adjacent to the Metro Green Line EI Segundo Station in accordance with Section 7.6.1 of the Development Agreement. WA 267 13. The applicant must allow a pedestrian easement across one or a combination of Parcels 13, 14 and/or 24 of Vesting Map No. 71551 to allow direct pedestrian access to the Metro Green Line Light Rail Station in accordance with the EI Segundo South Campus Specific Plan and Section 7.6.1 of the Development Agreement. Before recordation, the pedestrian easement must be reviewed and approved by the Director of Planning and Building Safety, the Director of Public Works and the City Attorney. 14. The applicant must record a 20 -year irrevocable offer of dedication of Parcels 20 and 22 of Vesting Map No. 71551 in accordance with the EI Segundo South Campus Specific Pian and Section 7.7 of the Development Agreement. Before recordation, the irrevocable offer to dedicate must be reviewed and approved by the Director of Planning and Building Safety, the Director of Public Works and the City Attorney. 15. To obtain access to sewer service in EI Segundo Boulevard a 25% payment by the applicant towards the cost of a sewer line capacity upgrade, up to $375,000, in accordance with Section 8.2 of the Development Agreement is required not later than December 31, 2018. 16. If the applicant sells more that 20% of the ESSCSP campus area (28.44 acres) to a user other than Raytheon or a Raytheon affiliate, then all employees within the ESSCSP area must be provided access to the 7.54 acre Open Space and Recreational area in accordance with Section 9 of the Development Agreement. 17. The applicant must record a 20 -year irrevocable offer of dedication of the 7.54 acre recreation/open space area to the City of EI Segundo, in a form approved by the City Attorney, for future potential park purposes in accordance with the Development Agreement if located on any of the lots (Parcels 1, 2, 3, 4, 7, 8, 13 or 14 of Vesting Map No, 71551) outside the Raytheon security fenced perimeter. 18. The applicant must make one annual $500,000 payment and five subsequent annual $700,000 payments to the City as identified in Section 10 of the Development Agreement. Six annual payments are required starting on March 31, 2016 and ending on March 31, 2021. If the Nash Street roadway extension improvements are not completed within 10 years of the effective date of the City Council ordinance approving this project, an additional $5,000,000 payment to the City is required. -3- 268 19. A $.50 per square foot fee for all new development on the site is required. All revenue from this fee will be deposited to the City's General Fund. 20 The applicant is required to obtain any necessary approvals from the Los Angeles County Metropolitan Transportation Authority (Metro) for any work that involves encroachment onto Metro easement areas or right-of-ways. These approvals may include, without limitation, pedestrian, bicycle and roadway easements and temporary right -of - entry agreements. 21 The applicant is required to submit building and engineering plans to Metro for any project site located within 100 feet of the Metro station or rail easement. Clearance of these plans from Metro is required before the City can issue a building permit. Metro requires an Engineering Review Fee for evaluation of any impacts based on adjacency and relationship of proposed new structures to the Metro existing structures. 22. The applicant is required to obtain a Metro Special Operation Permit for use of a pile driver or any other equipment in close proximity to a Metro aerial railway support structure at least one week before starting construction. 23 If required by Metro, the applicant must obtain a track allocation permit for any work within ten feet of a Metro aerial railway support structure. Permits allowing for single tracking or a power shutdown must be obtained from Metro at least two weeks before the start of construction. 24 The applicant must allow Metro representatives access to monitor any construction activity to ascertain if construction activity will have any impacts on Metro Right -of -Way. 25. Wayfinding signage to the Metro Green Line Station and other transportation facilities must be provided at appropriate locations within the Specific Plan area. These signs must be consistent with applicable Metro guidelines for wayfinding signage. The Director of Planning and Building Safety and the Director of Public Works must review and approve the location and appearance of wayfinding signs. 26 Before the City issues a certificate of occupancy for any new building within the ESSCSP, the applicant must contact Metro about employer transit pass programs. The applicant must provide -4- 269 verification of this contact to the Director of Planning and Building Safety. 27 Projects located within the ESSCSP must comply with the City's Transportation Demand Management (TDM) regulations (ESMC §§15-17-1, et seq.). Evaluation for compliance with the City's TDM regulations for specific projects will occur as part of the Site Plan Review process identified in ESSCSP § VII.D. 28. The applicant must contact the County Sanitation Districts of Los Angeles County Industrial Waste Section and receive a determination as to the necessity of a permit for industrial waste discharge before City approval of a Site Plan Review for any project within the ESSCSP. 29. A Study Application Package for a second customer dedicated substation must be submitted to Southern California Edison before City approval of a Site Plan Review for any project that would require electrical service from a second substation within the ESSCSP area. 30. The applicant must submit six sets of project plans depicting the EI Segundo roadway widening and intersection improvements for Southern California Edison review and approval before City approval of building permits for a building identified as part of Phase II in the EIR. 31. Trash and recycling enclosures must be provided and shown on site plans that are sufficiently large enough to store the necessary bins required for" the regular collection of commercial solid waste and recyclable materials. The site plan with the location and dimensions of the trash and recycling enclosure and an elevation view of the enclosure must be provided to the Planning and Building Safety Department for review and approval before the City issues building permits. 32. A qualified cultural resources monitor must be present during earthmoving construction activities. The requirements and procedures set forth in Public Resources Code §§ 5097, et seq., must be implemented if human remains are discovered during site excavation. 33 Ground level mechanical equipment, refuse collectors, storage tanks, generators, and other similar facilities must be screened from view consistent with the development standards and design guidelines contained in the EI Segundo South Campus Specific Plan. -5- 270 34. Exterior lighting must be designed to minimize off-site glare. 35. Buildings must be designed to comply with all ESMC standards for the attenuation of interior noise. 36. At the time of plan check submittal for the first project within the ESSCSP area the applicant must submit funds to cover reasonable first year costs, including City consultant costs, of monitoring all conditions of approval and mitigation measures adopted in the MMRP. Annually thereafter, the applicant is required to replenish funds sufficient to cover the reasonable costs, including City consultants' costs for each year. The Director of Planning and Building Safety, at the Director's discretion, may retain a consultant to coordinate and monitor compliance. 37. Before the City issues a grading permit, building permit, or certificate of occupancy, as applicable, the applicant must provide evidence to the Director of Planning and Building Safety that all mitigation measures in the MMRP are or will be implemented. 38. A Landscape Master Plan for the ESSCSP must submitted to the City before it approves the first Site Plan Review within the Specific Plan area. This Landscape Master Plan is subject to review and approval by the Director of Planning and Building Safety. 39. An overall Master Sign Program for the ESSCSP must be submitted to the City before it approves the first Site Plan Review within the Specific Plan area. This Master Sign Program is subject to review and approval by the Director of Planning and Building Safety. 40. A Trip Budget tracking system, based on the criteria contained in Appendix A of the EI Segundo South Campus Specific Plan, must be developed and approved by the Director of Planning and Building Safety. An update of the Trip Budget tracking system is required to be submitted with every Site Plan Review and Plan Check for projects located within the ESSCSP area. 41 The Project Trip Ceiling for the project is the maximum number of vehicle trips permitted for the project. The Project Trip Ceiling for new development within the ESSCSP area consists of: 3,042 AM Peak Hour Trips (2,634 In and 408 Out) • 3,120 PM Peak Hour Trips (631 In and 2,489 Out) 26,585 Total Daily Trips M 271 42 Before the City issues a building permit for the first building located within any Phase identified in the EIR, a reclaimed water facility plan must be submitted for review and approval by the Director of Planning and Building Safety and the Director of Public Works. 43. The project must meet all design criteria of the Specific Plan to the satisfaction of the Director of Planning and Building Safety. Buildinct Division -Conditions 44. Before the City issues building permits, the applicant must submit a geotechnical/soils report, along with an associated grading plan that addresses the current code to the Planning and Building Safety Department for review and approval. 45. Before the City issues grading permits, the applicant must submit a soils report to the Planning and Building Safety Department for review and approval. 46. Before the City issues building permits, plans must show compliance with the version of the California Building Code, as adopted by the SSMC, in effect at the time of building permit application. 47 Before the City issues grading or building permit for any project within the Specific Plan area, the applicant must provide evidence to the reasonable satisfaction of the Director of Planning and Building Safety that all applicable permits from other agencies are obtained including, without limitation, the California Department of Transportation, Regional Water Quality Control Board (Los Angeles Region), South Coast Air Quality Management District, and Los Angeles County Department of Public Works. Fire Department Conditions 48. The project must comply with all applicable requirements in the California Fire Code and the International Fire Code, as adopted by the ESMC, and EI Segundo Fire Department regulations, in effect at the time of building permit application. 49. Before the City issues a building permit, the applicant must submit a Fire/Life Safety Plan to the Fire Chief (or designee) identifying fire safety precautions during demolition and construction, emergency site access during construction, permanent fire department access, fire hydrant locations and any existing or proposed fire sprinkler system and fire alarm systems. -7- 272 50 The applicant must provide a fire apparatus access roadway around the west and north side of Raytheon Building E-1 (2000 East EI Segundo Boulevard) and the west side of Raytheon Buildings E-2 (2002 East EI Segundo Boulevard) and E-3 (2004 East EI Segundo Boulevard). The fire apparatus access roadway must meet requirements in the adopted California Fire Code and EI Segundo Fire Department Fire Prevention Regulation A -1-a. 51. Private fire main systems for each new building or parcel must be from an independent public water supply. There can be no sharing of private fire main systems between parcels. 52. The applicant must provide an automatic fire sprinkler system throughout each building, installed in accordance with California Fire Code Chapter 9 and the currently adopted edition of NFPA 13, both as adopted by the ESMC. 53 The applicant must provide the following conditions for any fire features as part of this project: A) A barrier must be provided around the fire feature to prevent accidental access into the fire feature; B) The distance between the fire feature and combustible material and furnishing must meet the fire feature's listing and manufacturer's requirements, and C) If the feature's protective barrier exceeds ambient temperatures, all exit paths and occupant seating must be a minimum 36 inches from the fire feature. 54. Each building needs to be identified as a separate street address for emergency response purposes. 55. The project must provide on-site collection and dispersion (infiltration) of non-stormwater discharges from testing and maintenance of water-based fire protection systems (fire sprinklers and private fire main systems) and other non-stormwater discharges. 56. Any diesel -powered generators must be approved by the Fire Department, Environmental Safety Division, and provide for secondary containment, placarding, spill detection and prevention. Underground tanks require additional environmental monitoring requirements. 57. The applicant must provide the Environmental Safety Division of the EI Segundo Fire Department an inventory of any and all chemicals used in facilities that exceeds 55 gallons, 500 pounds or 200 cubic feet. E3 273 58 The applicant, or designee, must contact Underground Service Alert before digging or excavating. 59. Restaurant and industrial activities must have segregated wastewater systems to ensure pre-treatment devices are adequately protected. Public Works Department Conditions 60 All onsite utilities including, without limitation, water, electricity, gas, sewer and storm drains, must be installed underground. Contact Southern California Edison for required service and underground requirements. 61 The applicant must secure any required encroachment permits from the Public Works Department before commencing any work in the public right-of-way. 62. The project must comply with the latest National Pollution Discharge Elimination System (NPDES) requirements and provide Best Management Practices (BMPs) for sediment control, construction material control and erosion control. 63 Before the City issues a building permit, the location and sizes of all proposed water meters must be approved by the City's Water Division. 64 Acceptable water service connection points for future construction in the ESSCSP area is subject to review and approval by the Director of Public Works. 65_ The location of existing water service lateral connection points in the ESSCSP area as well as existing and proposed fire hydrant connections area subject to review and approval by the Director of Public Works. 66. City water mains cannot be located on private property. The applicant must provide a main meter in the public right-of-way. 67. Wastewater facilities cannot have structures built over them. 68. Wastewater facilities cannot be designed with curves; they must be straight lines from manhole to manhole. If deviations are needed, they must be made at manholes. IWI 274 69. A registered civil engineer must provide storm (hydrologic and hydraulic) calculations for appropriate storm drain facilities to control on-site drainage and mitigate off-site impacts, as follows, subject to review and approval from the Public Works Director, or designee: The design must follow the criteria contained in the most recent additions of both the Los Angeles County Department of Public Works Hydrology Manual and Standard Urban Storm Water Mitigation Plan. Flows must remain in their historical drainage pattern so as not to impact neighboring properties. New development cannot increase the rate of flow (cubic feet per second) or velocity (feet per second) of site run-off water to any off-site drainage areas beyond the measured or calculated pre -project rate and velocity. 70. Construction related parking must be provided on-site. 71. All record drawings (as -built drawings) and supporting documentation must be submitted to the Public Works Department before scheduling the project's final inspection. Police Deoartment Conditions 72. Before the City issues a building permit within the ESSCSP, the applicant must submit photometric light studies for Police Chief or designee review and approval. A site plan must be provided showing buildings, parking areas, walkways, and the point -by -point photometric calculation of the required light levels. 73. A schematic plan of the security camera systems for new structures must be submitted for Police Chief or designee review and approval before the City issues a building permit, and must be included as a page in the stamped approved set of plans. 74. Lighting devices must be enclosed and protected by weather and vandal resistant covers. 75 The location and design of crosswalks are subject to Police Chief or designee review and approval review and approval. 76 The location and design of future bicycle racks and bicycle parking areas are subject to Police Chief or designee review and approval. -10- 275 77. The Police Chief or designee will review new buildings and tenant improvements within buildings during the plan check process. Interior and exterior improvements are subject to Police Chief or designee review and approval. Items subject to review include, but are not limited to, doors and hardware, roll -up doors, stairwells, exterior mounted ladders and trash dumpsters. 78. Street addressing must be a minimum of 6 inches high and must be visible from the street or driving surface, of contrasting color to the background and illuminated during hours of darkness. Addressing must also be shown on plan elevations. 79 All landscaping must be low profile around perimeter fencing, windows, doors and entryways so as not to limit visibility or provide climbing access. Dense bushes cannot be clumped together in a manner that provides easy concealment. Construction Conditions 80 Before any construction occurs within the plan area, the perimeter of the development site must be fenced with a minimum 6 -foot high fence. The fence must be covered with a material approved by the Planning and Building Safety Director, or designee, to prevent dust from leaving the site. 81. Public sidewalks must remain open at all times. 82. All haul trucks hauling soil, sand, and other loose materials must either be covered or maintain two feet of freeboard. 83. Construction vehicles cannot use any route except the City's designated Truck Routes. 84. The applicant must develop and implement a construction management plan for any project located within the Specific Plan area. The construction management plan is subject to Director of Planning and Building Safety and Director of Public Work review and approval. The plan must include measures recommended by SCAQMD Rules 402 and 403. 85 During construction and operations, all waste must be disposed in accordance with all applicable laws and regulations. Toxic wastes must be discarded at a licensed, regulated disposal site by a licensed waste hauler. -11- 276 Impact Fee Conditions 86. Pursuant to ESMC §§ 15-27A-1, et seq., and before building permits are issued, the applicant must pay a one-time fire services mitigation fee in accordance with City Council Resolution No. 4687. 87. Pursuant to ESMC §§ 15-27A-1, et seq., and before building permits are issued, the applicant must pay a one-time police services mitigation fee in accordance with City Council Resolution No. 4687, 88. Pursuant to ESMC §§ 15-27A-1, et seq., and before building permits are issued, the applicant must pay a one-time park services mitigation fee in accordance with City Council Resolution No. 4687. 89. Before building permits are issued, the applicant must pay the required sewer connection fees (as specified in ESMC Title 12-3). 90. Pursuant to ESMC §§ 15-27A-1, et seq., and before the City issues a certificate of occupancy for buildings within the Specific Plan, the applicant must pay a one time traffic mitigation fee in accordance with City Council Resolution No. 4443. 91. Permittee agrees to pay City any development impact fees ("DIFs") that may be applicable to the Project. Permittee takes notice pursuant to Government Code § 66020(d) that City is imposing the DIFs upon the Project in accordance with the Mitigation Fee Act (Government Code § 66000, et seq.). The permittee is informed that it may protest DIFs in accordance with Government Code § 66020. 92. All required fees, adopted by agencies with jurisdiction over intersections and roadways affected by this Project and identified in the MMRP adopted for this project, must be calculated and collected by affected agencies before Certificates of Occupancy are issued for any building identified as part of Phase II in the EIR. Proof of fee payment must be provided to the Director of Planning and Building Safety. 93. Before building permits are issued, the applicant must pay the required School Fees. This condition does not limit the applicant's ability to appeal or protest the payment of these fees to the school districts(s). Miscellaneous 94. Unless otherwise provided by the Development Agreement, the vesting tentative map will expire pursuant to Government Code § 66452.6 and ESMC § 14-1-12. -12- 277 95. The Raytheon Company, agrees to indemnify and hold the City harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising from the City's approval of Environmental Assessment No. EA -905, General Plan Amendment/General Plan Map Amendment No. GPA 11-01, Specific Plan No. SP 11-01, Zone Change and Zoning Map Amendment No. ZC 11-02, Zone Text Amendment No. ZTA 11-01, Development Agreement No, DA 11-02, and Subdivision No. 11-02 (VTM No. 71551). Should the City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the City approval of Environmental Assessment No. EA -905, General Plan Amendment/General Plan Map Amendment No. GPA 11-01, Specific Plan No. SP 11-01, Zone Change and Zoning Map Amendment No. ZC 11-02, Zone Text Amendment No. ZTA 11-01, Development Agreement No. DA 11-02, and Subdivision No. 11-02 (VTM No. 71551), the Raytheon Company, agrees to defend the City (at the City's request and with counsel satisfactory to the City) and will indemnify the City for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of this section "the City" includes the City of EI Segundo's elected officials, appointed officials, officers, and employees. By signing this document, Rdoet LI p;arQon behalf of the Raytheon Company, certifies that they have read, understood, and agree to the Project Conditions listed in this document. t J. Moore President -Business Services eon Company PAPlanning & Building S2fetyl0 Planning - Old1PROJECTS (Planning)1901-9251EA-9051City CouncillEA- 905.CC reso.doc -13- 278 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA ITEM STATEMENT AGENDA HEADING: PUBLIC HEARING AGENDA DESCRIPTION: Conduct a public hearing regarding the annual update to the Master Fee Schedule and amending current fees and service charges and various other amendments to the City of El Segundo Fee Schedule; this does not include water rates, sewer rates, and development impact fees. (Fiscal impact: potential additional revenue for FY 2019-20 of $130,000) RECOMMENDED COUNCIL ACTION: 1. Conduct the public hearing on the proposed fee adjustments. 2. Adopt a resolution establishing changes to the schedule of fees and charges for City services 3. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: 1. Exhibit A — Updated Master Fee Schedule & fee comparison table 2. Exhibit B —Resolution STRATEGIC PLAN: Goal: 5(b) Champion Economic Development and Fiscal Sustainability: El Segundo approaches its work in a financially disciplined and responsible way Objective: 2 The City will maintain a stable, efficient, and transparent financial environment FISCAL IMPACT: $ (130,000 for FY 2019-20) Amount Budgeted: $0 Additional Appropriation: N/A PREPARED BY: Juliana G Demers, Revenue Manager REVIEWED BY: Joseph Lillio, Director of Finance APPROVED BY: Scott Mitnick, City Manager K S� DISCUSSION: In 2017, the City Council directed staff to prepare a study identifying the full cost of providing services. In 2018, as a result of this effort City Council adopted policy establishing cost - recovery standards, a first Citywide full -cost based Master Fee Schedule, and an ongoing mechanism to assess the cost of services and to adjust fees accordingly. 1 1 279 BACKGROUND The City's Master Fee Schedule is a compilation of the fees charged for services. All fees are reviewed from time to time in order to ensure that the fees charged do not exceed the estimated costs required to produce the services and that all fees are in compliance with the California Government code Sections 66016 and 66018. The City uses a Master Fee Schedule to establish fees for a variety of services. The current Master Fee Schedule was adopted in 2018. As approved, the Master Fee schedule, unless otherwise revised, will be automatically adjusted on an annual basis at the beginning of each fiscal year based on the most recent reported June annual percentage of change in the United States Department of Labor, Bureau of Labor Statistics' Los Angeles -Riverside -Orange County CPI -U for the calendar year. In addition to the CPI adjustment, there is a handful of fees that were not captured by the last Fee Study and others that are no longer in need. Staff performed a fee audit staff with assistance of the consultant Revenue Cost Specialist and the variations from the current approved Master Fee Schedule are listed below. The estimated fiscal impact from the proposed changes is potential additional revenue for FY 2019- 20 of $ 130,000. A Public Hearing will be conducted during the August 20, 2019 City Council Meeting. EXISTING PUBLISHED FEES TO BE CORRECTED will be corrected on the master fee schedule REF # SERVICE FY 18-19 FY 19-20 REC-010 BLOCK PARTY PERMIT $ 60.00 $ 400.00 PRIVATE SPEC. EVENT REC-011 PERMIT/SERVICES $ 25.00 $ 150.00 SERVICES NO LONGER PROVIDED OR INCORPORATED BY OTHER SERVICE FEES ILL BE REMOVED FROM MASTER FEE SCHEDULE REF # SERVICE BL -005 STOCKPILE/BORROW SITE PLAN CHECK EN -002 EXCAVATION PERMIT EN -003 UTILITY STREET CUT PERMIT EN -012 PUBLIC IMPROVEMENT INSPECTION EN -013 CERTIFICATE OF CORRECTION ISSUANCE EN -016 SURETY & SUBORDINATION REVIEW EN -017 LIEN REMOVAL EN -024 BLUEPRINT COPY SERVICE LB -001 NEW LIBRARY CARD PROCESSING FOR BUSINESS/CORPORATE LB -003 INTER -LIBRARY LOAN PROCESSING NON SCLC REQUEST LB -004 LIBRARY ITEM RESERVATION LB -005 OVERDUE LIBRARY ITEM PROCESSING 280 PL -015 SPHERE OF INFLUENCE AMENDMENT PL -016 ANNEXATION REQUEST REVIEW PL -020 PLANNED RESIDENTIAL DEVELOPMENT REVIEW PL -022 SMOKY HOLLOW FLOATING ZONE PROC. PL -023 SMOKY HOLLOW SITE PLAN PL -036 REVERSION TO ACREAGE NEW FEES TO BE ADDED TO THE MASTER FEE SCHEDULE Proposed REF # SERVICE FY 19-20 PBS New address processing $ 625.00 PBS Temporary sin permit - private property 227.00 PBS Downtown parking in lieu 17,500.00 PBS Smoky hollow parking in lieu 28,000.00 PBS Entertainment permit renewal 55.00 PBS Lot tie covenant 614.00 PBS Site plan review COST Recreation Youthsports organizations per player fee Recreation Resident 10.00 Recreation Non-resident 30.00 Recreation Competition pool - rental - hourly rates Recreation Short course - for profit - short term rental <1 Ohrs/wk 25.00 Recreation Short course - for profit - long term rental > or = I Ohrs/wk 20.00 Recreation Long course - for profit - short term rental <1 Ohrs/wk 45.00 Recreation Long course - for profit - long term rental > or = IOhrs/wk 35.00 Recreation Short course - non-profit - short term rental <1 Ohrs/wk 20.00 Recreation Short course - non-profit - long term rental > or = l Ohrs/wk 15.00 Recreation Short course - non-profit - non -prime time 10.00 Recreation Long course - non-profit - short term rental <1 Ohrs/wk 40.00 Recreation Long course - non-profit - long term rental > or = l Ohrs/wk 30.00 Recreation LonZ course - non-profit - non -prime time 20.00 Recreation Half pool - alternate use - forrafit - short term rental <1 Ohrs/wk 105.00 Recreation Half pool - alternate use - for profit - long term rental > or = I Ohrs/wk 85.00 Recreation Full pool - alternate use - for profit - short term rental <1 Ohrs/wk 210.00 Recreation Full pool - alternate use - for profit - long term rental > or = l Ohrs/wk 170.00 Recreation Half pool - alternate use - non-profit - short term reantal <10hrs/wk 85.00 Recreation Half pool - alternate use - non-profit - long term rental > or = l Ohrs/wk 65.00 Recreation_ .......... Full pool - alternate use - non-profit - short term rental < l Ohrs/wk 200.00 _ Recreation Full pool - alternate use - non-profit - long term rental > or = l Ohrs/wk 150.00 281 Recreation Teachitig pool Proposed REF # SERVICE FY 19-20 Recreation For profit - long term rental > or = 1 Ohrs/wk 20.00 Recreation Non-profit - short term rental <IOhrs/wk 15.00 Recreation Non-profit - lon term rental > or = l Ohrs/wk 10.00 Recreation Full pool -for profit -short term rental <10rs/wk 100.00 Recreation Full pool - for profit - long term rental > or = l Ohrs/wk 80.00 Recreation Full pool - non-profit - short term rental <1 Ohrs/wk 60.00 Recreation Full pool - non-profit - long term rental > or = I Ohrs / wk 40.00 Recreation Event pricing Recreation Full day competition pool 6+ hours 3,500.00 Recreation Half day com etition ool < 6 hours 1,850.00 Recreation Full day teaching pool 6+ hours 700.00 Recreation Half day teaching pool < 6 hours) 425.00 Recreation Lighting fee if applicable) 20.00 / hr Recreation Timing system if applicable) 55.00/event Recreation Extra staff if applicable) 25.00 / hr CONCLUSION It is recommended that the City Council review suggested cost recovery rates and adjust the fee schedule for the enumerated City services presented in Exhibit A. If all the recommendations and suggestions made in this Report are adopted, the City's financial picture would continue to improve. Also, far more equity between taxpayers and fee -payers, as well as fairness between property -related and non -property -related services would be secured, assisting in the City's continued financial stability into the future. 282 Link to Proposed Master Fee Schedule Amendments for FY 2019-2020 283 Propos d Master Fee Schedule Amendments FY 2 19-2040 REFK SEItYICE amenc PmposM FY IA19 FY 1320 F enc ADU01 SHORTTERMRENTALREGISTRATION NEW 200.88 $ 206 PENAPPNG RGN RENEWAL 155.00 $ 150 PER RENEWAL AD-OD2 FlLM PERMrr PRO— PERMR AFPLICATIONFEE 1225.00 $ 1,264 DAILY FILM PERMIT FEE 16140 $ 106 PEA DAY REVISION/RIDER 190.00 $196 FACH —LICRIGEIT-DF-WAYUSAGE OTY UL—LON USAGE FOU PEASDNNEL ]50.00 $ VARIOUS ACTVPl CGSTS ]]4 PEADAYPERLDCAAON PEA DAY PER U— FIREPEPSONNFL FUBUC WORKS PERSDNNEL ACIIIAL COSTS ACNAL OOSM ADAIB NSF CHECK PREICESSINO FIRSTNSF CHECK 95.00 45.00 EACH SUBEECWENT NSF CHECK 90.00 90A0 ALLWf CREDIT GADPRCESSING PROCESSING FEE 2]5% 225 Y. OF AMOUNT CHARGED AD-0OS COPY SERIR� F—SCOPIES EACHADDINONALCDPY NOCWNGE 0.20 s021 PEA COPY FPPCCDPIES 010 $ 010 PEA CDPY AD-000 DOCONENTCEATIFlCATIDN (ER 11-OON FEE 300 $ 3 PEA DOLUMFM ADL02 MDEDIME10 COPYING COPYING FEE m $ 10 PER TAPEJDISK AD-0OB IN0--PKOCE961NG APPU-EON FEE 200.00 $ 200 PER APPUCRAON BL�1 BUILDING PLAN CHECK S-- ER —SEEAPPENDIXC SEE APPENDIX ( BLAU2 BUILDINGINSP IDNSERNC6 $ - SEEAPPENDIXC E— MAPfPLAW ILE Sf4NNING SERVCES E 1/2"X11" 1.20 $ 124 PER SHEET —ER ]BO $ ]A6 PEA SHEET El— DEM—EHTUDYHEVIEW $ - DEPOSITDETERMINDEDBY—FF E-1 STOCKPIIE(BOHIIOWSITEPLANCHECK $ - SERVICE NO LONGER PROVIDED ENDOl ENCROACHMENT PERMIT PERMUI55 UANCE 135.00 $ 139 INSPECrIDN 2.00 s 2AG PEAUN.FTWf MIN.OF Link to Proposed Master Fee Schedule Amendments for FY 2019-2020 283 RESOLUTION NO. A RESOLUTION OF THE CITY OF EL SEGUNDO ESTABLISHING A SCHEDULE OF FEES AND CHARGES FOR RECOVERING COSTS INCURRED FROM PROVIDING VARIOUS CITY SERVICES. The Council of the City of EI Segundo resolves as follows: SECTION 1. The City Council finds as follows: A. The City Council may establish fees for services under various provisions of California law including, without limitation, Business & Professions Code § 16000; Government Code §§ 36936.1, 43000, 54344, 65104, 65456, 65874, 65909.5, 65943, 66013, 66014, 66451.2; and Health & Safety Code §§ 510, 17951, 17980.1, and 19852; B. Pursuant to Government Code § 66016, the City made data available regarding the cost, or estimated cost, of providing services for various fees ten (10) days before the public hearing held on August 20, 2019; C. On August 20, 2019, City Council heard public testimony and considered evidence in a public hearing held and noticed in accordance with Government Code § 66016; D. At the recommendation of the City's Departments and the City Manager, the City Council believes that it is in the public interest to establish the recommended fees to recover the costs of public services. SECTION 2. The Fee Schedule Adoption: The schedule of fees and charges attached as Exhibit "A" and incorporated into this Resolution as if fully set forth herein, are approved and adopted. SECTION 3. Separate Fee for Each Process: All fees set by this Resolution are for each identified process; additional fees shall be required for each additional process or service that is requested or required. Where fees are indicated on a per-unit of measurement basis, the fee is for each identified unit or portion thereof within the indicated ranges of such units. SECTION 4. Added Fees and Refunds: Where additional fees need to be charged and collected for completed staff work, or where a refund of excess deposited monies is due, and where such charge or refund is $15.00 or less, a charge or refund need not be made, pursuant to California Government Code § 50055 and amendments thereto. 284 1 SECTION 5. New Fees: Any fees for new services established throughout the year shall be incorporated into the City's fee structure and collected with recovery percent consistent with similar services. SECTION 6. Inte►pretation: This Resolution may be interpreted by the several City Department Heads in consultation with the City Manager, and should there be a conflict between two fees, then the lower in dollar amount of the two shall be applied. SECTION 7. Intent: It is the intention of the City Council to review the fees and charges as determined and set out herein, based on the City's next Annual Budget and all of the City's costs reasonably borne as established at that time and, if warranted, to revise such fees and charges based thereon. SECTION 8. Unless otherwise revised, the fees established by this Resolution will be automatically adjusted on an annual basis at the beginning of each fiscal year based on the most recent reported June annual percentage of change in the United States Department of Labor, Bureau of Labor Statistics' Los Angeles -Riverside -Orange County CPI -U for the calendar year. The first fee adjustment may not be made before a minimum of twelve (12) months after the effective date of this Resolution. SECTION 9: This Resolution is exempt from review under the California Environmental Quality Act (Cal. Pub. Res. Code §§ 211 000. et seq.; "CEQA") and CEQA regulations (14 Cal. Code Regs. §§ 15000, et seq.) because it establishes, modifies, structures, restructures, and approves rates and charges for meeting operating expenses; purchasing supplies, equipment, and materials; meeting financial requirements; and obtaining funds for capital projects needed to maintain service within existing service areas. This Resolution, therefore, is categorically exempt from further CEQA review under 14 Cal. Code Regs. § 15273. SECTION 10. Effective Dates: This resolution shall go into full force and effect immediately but shall be subject to the terms and conditions pursuant to Government Code § 66017. Development related fees will go into effect November 1, 2019, Recreation fees will go into effect October 1, 2019, Aquatic fees and Special event fees shall go into effect August 1, 2018, while all other fees will become effective on October 1, 2019 and will remain effective unless repealed or superseded. SECTION 11. All resolutions and other actions of the City Council in conflict with the contents of this Resolution are hereby repealed. SECTION 12 Severability: If any portion of this Resolution is declared invalid or unconstitutional, then it is the intention of the City Council to have passed the entire Resolution and all its component parts, and all other sections of this Resolution shall remain in full force and effect. 285 SECTION 13: The City Clerk will certify to the passage and adoption of this Resolution; will enter the same in the book of original Resolutions of said City; and will make a minute of the passage and adoption thereof in the record of proceedings of the City Council of said City, in the minutes of the meeting at which the same is passed and adopted. PASSED, APPROVED, AND ADOPTED this AYES: NOES: ABSENT: ABSTAIN: PASSED AND ADOPTED this ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney day of , 2019. day of August, 2019. Drew Boyles, Mayor :. EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA STATEMENT AGENDA HEADING: Presentation AGENDA DESCRIPTION: Presentation of Investment Portfolio Report for June, 2019 (Fiscal Impact: None) RECOMMENDED COUNCIL ACTION: 1. Receive and File 2. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: Investment Portfolio Report — June, 2019 FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A STRATEGIC PLAN: Goal: 5 Champion Economic Development & Fiscal Sustainability Objective: 3 The City will maintain a stable, efficient, and transparent financial environment ORIGINATED BY: Dino Marsocci, Deputy City Treasurer II REVIEWED BY: Crista Binder, Treasurerb APPROVED BY: Scott Mitnick, City Manager N 61 BACKGROUND AND DISCUSSION: The Treasury Department presents the June, 2019 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. 287 FE kSEGUHDD •iNca�ruse rse t:�� eml o, a Se# r� elA" olt& eml J-wajaww Date: August 20, 2019 From: Office of the City Treasurer To: EI Segundo City Council RE: Investment Portfolio Report — As of June 30, 2019 Introduction: This report will serve as a summary for the City of EI 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 Summary: The investments as of June 30, 2019 are as follows: Security Type Reserve Portfolio Government Municipal Bonds Corp. Bonds SUPRA's CD's Union Bank Trust Liquidity Portfolio CAMP-JPAP LAI F Immediate LAIF Sr. Housing LAI F - LAWA LAIF Subtotal Total Invested Trust Acct. Cash Chase Bank - Cash Total Portfolio Page 1 1 June Portfolio Summary Market Cost Market value WAM % Yield % of Total 20,125,943.84 20,188,804.34 2.75 2.14% 20.91% 2,870,211.50 2,918,932.50 3.79 2.64% 3.02% 12,514,593.62 12,607,912.73 1.88 2.43% 13.06% 2,970,703.00 2,989,675.00 0.99 2.21% 3.10% 21;469,400.20 21,504,159.60 2.42 2.34% 22.27% 59,950,852.16 60,209,484.17 2.42 2.30% 62.36% 23,598,039.55 23,598,039.55 1.00 2.48% 24.44% 5,170,412.32 5,170,412.32 1.00 2.43% 5.36% 1,133,460.90 1,133,460.90 1.00 2.43% 1.17% 61, 374.07 61, 374.07 1.00 2.43% 0.06% 6,365,247.29 6,365,247.29 1.00 2.43% 6.59% 89 914 139.00 90 172 771.01 1.51 2.36% 93.39% 5,828.97 5,828.97 1.00 0.00% 0.01% 6,371.453.70 6, 371, 453.70 1.00 0.45% 6.60% 95 291 421.67 _96,5601053.68 2.35% 100.00% 288 The portfolio Breakdown by Short Term (< 1 year) and Long Term is: As of: June 30, 2019 Short Term Long Term Total Portfolio Value (Market) $ 44,705,489 $ 45,473,111 $ 90,178,600 Effective Yield 2.292% 2.419% 2.356% Average Wtd. Maturity 74 Das 3.01 Years 1.62 Years The interest income received during the period was: Month Invested Cost Interest Received % Yield April May June Avg/Total 89, 253, 775 124, 736.79 1.68% 90, 860, 228 147, 848.14 1.95% 89, 919, 968 171,101.47 2.28% 90,011,324 443,686.40 1.97%° * Note: the monthly fluctuation is because interest on most bonds is paid semi-annually, with LAIF paid quarterly, and some investments paid monthly. 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 Ma)amum City of EI In Investment Type Ma�amum Specified % of Minimum Quality Segundo Compliance Maturity portfolio Requirements Investments Y/N Local Agency 5 years 10% None 3.02% Y Bonds U. S Treasury 5 years None None 0.00% Y Obligations US Agency 5 years None None 20.91% Y Obli ations Negotiable Certificates of 5 years 30% None 22.27% Y Deposit Medium Term 5 years 15% "A" Rating 13.06% Y Notes Collateralized 5 years None None 0.00% Y Bank Deposits Local Agency Investment Fund N/A None None 6.59% Y LAI F SUPRA Nationals 5 years 10% "A A A" Rating 3.10% Y Commercial 5 years 10% "A -1/A" Rating 0.00% Y Paper Joint Powers N/A 30% Multiple 24.44% Y Authority Pool Page 12 289 Investment T e: Medium Term Notes, Su ranationals, CD's & Commercial Paper - As of: June 30, 2019 Investment Type Issuer Ma)amum % of Portfolio Minimum Quality Requirements S&P Rating Investments City of EI Segundo In Compliance MARKET VALUE Y/N Medium Term Notes TOTAL 15% "A!'Rating 13.06% Y 12,607,913 Medium Term Notes AMAZON.COM 3% "A" Rating AA- 0.52% Y 504,470 Medium Term Notes AMERICAN HONDA FINANCE 3% "A" Ratin A 1.03% Y 998,025 Medium Term Notes APPLE INC 3% "A" Rating AA+ 0.52% Y 504,950 Medium Term Notes BANK OF AMERICA 3% "A" Rating A- 0.52% Y 499,915 Medium Term Notes BANK OF NEW YORK MELLON 3% "A" Rating A 0.52% Y 502,750 Medium Term Notes BARCLAYS BANK PLC 3% "XiRating A 0.52% Y 498,505 Medium Term Notes CATERPILLAR FINANCIAL SVCS 3% "A" Ratin A 0.52% Y 504,335 Medium Term Notes CISCO SYSTEMS 3% "A" Rating AA- 1.04% Y 1.002,570 Medium Term Notes DANAHER CORP. 3% "A" Rating— A 0.52% Y 500,995 Medium Term Notes HSBC USA, INC. 3% "A" Rating A 0.51% Y 490,275 Medium Term Notes IBM CORPORATION 3% "A" Rating A 0.45% Y 430,515 Medium Term Notes JOHNS HOPKINS HEALTH SYS 3% "A" Ratin AA- 0.15% Y 146.373 Medium Term Notes MICROSOFT CORP 3% "A" Rating AAA 0.52% Y 499,405 Medium Term Notes NEW YORK LIFE GLOBAL 3% "A" Rating AA+ 0.52% Y 500,940 Medium Term Notes ORACLE CORPORATION 3% "A" Rating—A+ 1.03% Y 998,160 Medium Term Notes PACCAR FINANCIAL CORP 3% "A" Rating_A+ 0.53% Y 508,360 Medium Term Notes TOYOTA 3% "A" Rating AA- 0.53% Y 510,110 Medium Term Notes TOYOTA MOTOR CREDIT CORP 3% "A" Rating AA- 0.52% Y 498,955 Medium Term Notes WAL-MART STORES INC 3% "A" Rating AA 0.52% Y 505,610 Medium Term Notes WALT DISNEY CO 3% "A" Rating A 0.52% Y 498,090 Medium Term Notes WELLS FARGO & COMPANY 3% "A" Rati no A+/A- 1.56% Y 1,504,605 Supranational Obl. TOTAL 10% "AAA" Rat na 3.10% Y 2,989,675 Supranational Obl. Supranational Obl. IADB-INTER-AMERICAN DEV BANK IBRD-INTERNATIONAL BANK FOR RECON & DEV 3% 3% "AAA" Rating "AAA" Rating AAA AAA 2.58% 0.52% Y Y 2,488,270 501,405 Municipal Bonds TOTAL 10% "XiRating 3.02% Y 2,918,933 Municipal Bonds GOODRICH MICH 3% "A" Rating AA 0.32% Y 306,246 Municipal Bonds LA QUINTA CA REDEV 3% "A" Rating AA- 1.06% Y 1.021,740 Munici al Bonds LAS VEGAS NEV 3% "A" Rating AA 0.58% Y 564,457 Municipal Bonds OREGON ST DEPT ADMIN 3% "A" Rating__AAA 0.53% Y 514,175 Municipal Bonds TULSA CNTY OKLA INDP 3% "A" Ratin AA 0.53% Y 512,315 Commercial Paper TOTAL 10% "A-1/A" Ratin 0.00% Y - Commercial Paper 3% "A-1/A" Ratin A-1+ 0.00% Y - CD'S TOTAL 30% 22.27% Y 21,504,160 Joint Powers Auth. Pool TOTAL 30% 24.44% Y 23,598,040 J PAP , CAMP 30% 24.44% Y 23, 598,040 City of EI Segundo - Treasury Department Continuing Education Tracking - As of June 30,2019 Requirement YTD Hours Excess/ Deficit Notes Treasurer 5.00 25.60 20.60 GIOA 3/19+CMTA 4/19 Deputy City Treasurer II 5.00 29.60 24.60 GIOA 3/19+CMTA 4/19 Deputy City Treasurer 1 5.00 12.00 7.00 CMTA 1/19 + others Investment Environment: During the second quarter of 2019, rates dropped sharply, and the yield curve became more inverted out to three years, with the five year rate only slightly above the two and three year Treasury. As of August 12th the rates have dropped from June 30th, with the five year bond showing the largest drop in yield. The FOMC cut the Federal Funds Page 13 290 Rate at the July meeting by 25 Basis Points to 2.00%-2.25%, and at this time the forecast is that the Fed may cut rates one or two more times in 2019. The graphs and charts below show some of the key interest rates on items we invest in. As rates are expected to decrease over the next year, we want to continue to build our investment ladder and obtain the best value possible. 3.00 2.80 2.60 2.40 2.20 • 2. oC 2.00 d ae 1.80 1.60 1.40 1.20 1.00 US Treasury Bonds Yield Curve as of 6/28/19 2.43 2.40 2.44 2.40 2.27 2.21 2-Z3 2.12 9 - 1.75-- 1.76 1 MO 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr -X3/29/2019 X6/28/2019 Page 14 291 New Investment Yields vs. Treasury Yield Curve 3.50 3.00 2.69 • 2.76 2-80 • 2.15• 20-1 • 2.65 • 2.60 2.55 2-60 2.so 2.45 1 7 i:au z.ao • z.as • 2.377aA 2.40 • 2.30 �• xx7np5 2.27 2.21 3. 2QS 2.05 4. IZZZZ2222 2-05 2.232222 2-00 • L% 2-00L95 1.90 1.92 • L85 • 3L81 M 1.75 1.71 1.74 1.76 1.50 1.00 0.50 - I 0.00 1 2 3 Duration ♦6/28/2019 }3/29/2019 • YTM @ Cost Page 14 291 Composite Bond Rates (as of 6/30/19) US Treasury Bonds Rates Maturity Yield Yesterday Last Week Last Month 3 Month 2.12 2.14 2.11 2.35 6 Month 2.09 2.12 2.05 2.35 2 Year 1.75 1.74 1.77 1.95 3 Year 1.71 1.71 1.74 1.90 5 Year 1.76 1.76 1.80 1.93 Source: https://www.treasurv,(lavlresource-centerldata-chart-center/interest- rateslPa eslTextView.as x?data= ieldYear& ear=2018 Cash Flow Analvsis: 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. a 25,000,000 15,000,000 Tit>�•I•I•)�•I•I•; .•7 Page 15 Rolling 12 Month Cash Flow Analysis Total Receipts --a-Total Disbursements Jul -18 Aug -18 Sep -18 Oct -18 Nov -18 Dec -18 Jan -19 Feb -19 Mar -19 Apr -19 May -19 Jun -19 292 This chart shows the net change in Cash as related to the Cash Flow Analysis above. Some of the larger disbursements occur in the third and fourth quarters of the fiscal year. During Q-3, April to June, we have a significant payment to CalPers for our Other Post -Employment Benefits, and in Q-4, July- September, a payment to ICRMA for our citywide insurance premiums, a large payment to CalPers for the pension Unfunded Accrued Liability, and a large infrastructure payment for roadwork which was completed several years ago. We have added the prior year to highlight the changes that have occurred this year. 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 C I Is@•t• off •s• Rolling 12 Month Net Change in Cash �FY-2017/2018 -0-FY-2018/2019 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Additional Economic Indicators: Economic Pro'ections from June 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 Page 16 293 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. Unemployment Fed Economic Projections (central tendencies as of June 2019) Variable 2019 2020 2021 Longer run Change in real GDP 2.0-2.2 1.8-2.2 1.8-2.0 1.8-2.0 March projection 1.9-2.2 1.8-2.0 1.7-2.0 1.8-2.0 Unemployment rate 3.6-3.7 3.5-3.9 3.6-4.0 4.0-4.4 March projection 3.6-3.8 3.6-3.9 3.7-4.1 4.1-4.5 PCE inflation 1.5-1.6 1.9-2.0 2.0-2.1 2.0 March projection 1.8-1.9 2.0-2.1 2.0-2.1 2.0 Core PCE inflation4 1.9-2.0 2.0-2.1 March projection —1.7-1.8 1.9-2.0 2.0-2.1 2.0-2.1 Memo: Projected appropriate policy path Federal funds rate 1.9-2.4 1.9-2.4 1.9-2.6 2.5-3.0 March projection 2.4-2.6 2.4-2.9 2.4 - 2.9 2.5 - 3.0 91 3. 3- I 01/18 03/18 05F18 07/18 09/18 11/18 01/19 03/19 05/19 07/19 Month Source: http:l/data.bis.pov/cpi-bin/surveymost?bls Page 17 294 Inflation: 3.5 3.0 2.5 2.0 o� 1.5 1.0 0.5 0.0 4.5 4.0 3.5 3.0 2.5 2.0 o� 1.5 1.0 0.5 (0.5) (1.0) 1999 2000 20012002 2003 2004 2005 2006 2007 2008 2009 2010 20112012 2013 2014 2015 2016 2017 2018 2019 Inflation Rates by Month +20182019 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average Inflation Rates by Year Source: htt www.usinflationcalculator.com inflation current -inflation -rates Page 18 295 420,000 415,000 410,000 405,000 400,000 395,000 390,000 385,000 380,000 Jan Feb Mar Apr May Retail Trade & Food Services, ex Auto, US Total 2018 -2019 Seasonally Adjusted Sales (Millions of $) Jun Jul Aug Sep Oct Nov Dec Source: United States Census Bureau - http://www.census.gov/retail/index.html Investment Strategy: 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. In the past we maintained a higher cash balance at the bank in order to offset our bank fees since our Earnings Credit rate was higher than the LAIF rate. Now that the LAIF interest rate exceeds our Earnings Credit rate we have lowered our bank balance and invested more short term funds in LAIF. We will now pay bank fees but earn more interest income, and will continue to monitor 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. Additional Notes: The City has funds of $1,133,460.90 which belong to the EI Segundo Senior Citizens Housing Fund and is now shown as its own LAIF balance. The applicable interest for this account is posted quarterly in the same manner as the regular City LAIF interest posting. We also have funds of $61,374.07 included in the City's LAIF balances for LAWA RSI interest earned related to the prior program (Los Angeles World Airports Residential Sound Insulation). Page 19 296 The City of EI Segundo utilizes the following Brokers/Dealers to conduct investment trades: Cantor Fitzgerald & Co. CastleOak Securities, L.P. Higgins Capital Management, Inc. Multi -Bank Securities, Inc. Mutual Securities, Inc. Vining Sparks IBG, L.P. Wells Fargo Securities, LLC Piper Jaffray & Co. Great Pacific Securities Page 110 297 City of EI Segundo Investment Advisory Committee Liquidity Schedule As of: June 30, 2019 Item Availability Par Value Cash in Bank $11,547,694.99 Chase Immediate 6,371,453.70 Union Bank - Trust Account Immediate 5,828.97 Cash in Bank - Total $6,377,282.67 L.A.I.F. (State of California) LAIF Immediate 5,170,412.32 Cash Immediate $11,547,694.99 L.A.I.F. - Senior Housing Fund LAIF Immediate 1,133,460.90 L.A.I.F. - LAWA (Restricted) LAIF Immediate 61,374.07 CAMP - JPAP 23,598,039.55 Portfolio Investments: < 30 Days $42,690,569.51 31 to 90 Days $3,370,000.00 91 to 180 Days $2,980,000.00 181 to 365 Days $8,413,000.00 1 to 2 Years $13,115,000.00 2 to 3 Years $9,665,000.00 3 to 4 Years $10,310,000.00 4 to 5 Years _ $12,128.000.00 Subtotal 84, 773, 874.52 Grand Total $96,321,569.51 Investment Portfolio subtotal $89.950.115.81 $25,000,000.00 $20,000,000.00 $15,000,000.00 $10,000,000.00 $5,000,000.00 $0.00 Cumulative % of Total % of Total Cumulative Balances Assets Assets $6,377,282.67 6.62% 6.62% $11,547,694.99 11.99% 5.37% $12,681,155.89 13.17% 1.18% $12,742,529.96 13.23% 0.06% $36,340,569.51 37.73% 24.50% $36,340,569.51 37.73% 0.00% $39,710,569.51 41.23% 3.50% $42,690,569.51 44.32% 3.09% $51,103,569.51 53.06% 8.73% $64,218,569.51 66.67% 13.62% $73,883,569.51 76.71% 10.03% $84,193,569.51 87.41% 10.70% $96,321,569.51 100.00% 12.59% 100.00% Investments by Maturity Date a Par Value "j, yy -P e Q4aA tea y4 lea 110 h� °�,�, h a�°�,eac5 Page 1 11 298 City of EI Segundo I nvestment Advisory Committee Investments by Security Type As of: June 30, 2019 Subtotal $85,002,358.69 Grand Total $96,554,053.68 Investment Portfolio subtotal $90,178,599.98 INVESTMENTS BY SECURITY TYPE Cash Immediate, Bonds, $12,607,913_, $6,377,283 LAI F Immediate, SUPRA's, 2,989,67 Municipal Bonds, 2,918,933 Gov't Obligations, 20,188,804 CD's, $21,504,160 100.00% 0,412 LAIF. -Senior Housing, $1,133,461 - LAWA, $61,374 CAMPAPAP, $23,598,040 Page 1 12 299 Cumulative % of Total % of Total Item Availabilily Market Value Cumulative Balances Assets Assets Cash in Bank Chase Immediate 6,371,453.70 Union Bank - Trust Account I mmediate 5,828.97 Cash in Bank - Total $6,377,282.67 $6,377,282.67 6.61% 6.61% L.A.I.F. (State of California) LAIF Immediate 5,170,412.32 $11,547,694.99 11.96% 5.36% Cash Imrnediate $11,547,694.99 L.A.I.F. - Senior Housing Fund LAIF Immediate 1,133,460.90 $12,681,155.89 13.13% 1.17% L.A.I.F. - LAWA (Restricted) LAIF Immediate 61,374.07 $12,742,529.96 13.20% 0.06% CAMP - JPAP 23,598,039.55 $36,340,569.51 37.64% 24.44% Portfolio Investments: CD's 21,504,159.60 $57,844,729.11 59.91% 22.27% Gott Obligations 20,188,804.34 $78,033,533.45 80.82% 20.91% Municipal Bonds 2,918,932.50 $80,952,465.95 83.85% 3.02% SUPRA's 2,989,675.00 $83,942,140.95 86.94% 3.10% Bonds 12,607,912.73 $96,550,053.68 100.00% 13.06% Subtotal $85,002,358.69 Grand Total $96,554,053.68 Investment Portfolio subtotal $90,178,599.98 INVESTMENTS BY SECURITY TYPE Cash Immediate, Bonds, $12,607,913_, $6,377,283 LAI F Immediate, SUPRA's, 2,989,67 Municipal Bonds, 2,918,933 Gov't Obligations, 20,188,804 CD's, $21,504,160 100.00% 0,412 LAIF. -Senior Housing, $1,133,461 - LAWA, $61,374 CAMPAPAP, $23,598,040 Page 1 12 299 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA ITEM STATEMENT AGENDA HEADING: Reports of Committees, Commissions & Boards AGENDA DESCRIPTION: Authorize City Manager to sign a Cost Sharing and Joint Use Agreement with El Segundo Unified School District for the construction and use of a parking lot on the corner of Palm Avenue and Virginia Street to support general public recreational use of Richmond Street Field. (City's cost share will equal $307,206) RECOMMENDED COUNCIL ACTION: 1. Authorize City Manager to sign a Cost Sharing and Joint Use Agreement with El Segundo Unified School District for 70% of the construction cost, a one-time expense estimated at $307,206, and the use of a new parking lot adjacent to Richmond Street Field for 10 years; and, 2. Retain the remaining project funds of approximately $160,000 for future Richmond Street Field improvements (such as turf renovation and irrigation improvements). ATTACHED SUPPORTING DOCUMENTS: 1. Agreement #4347 - Joint Use Agreement for Public Recreation Facilities 2. Richmond Street Field Site Plan 3. Excerpt from ESUSD Long -Range Facility Master Plan Executive Summary - Richmond Street Elementary School FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A STRATEGIC PLAN: Goal: 4 Develop and Maintain Quality Infrastructure Objective: 4A El Segundo's physical infrastructure supports an appealing, safe and effective community n PREPARED BY: Meredith Petit, Director of Recreation and Parks REVIEWED BY: Meredith Petit, Director of Recr tion and Par APPROVED BY: Scott Mitnick, City Manager �`�� BACKGROUND & DISCUSSION: The FY 2018/2019 Budget includes $470,000 for the improvement of the Richmond Street Field, located at 615 Richmond Street. Richmond Street Field is property owned by the El Segundo Unified School District (ESUSD) and maintained and operated by the City outside of regular school hours as stipulated in the existing Joint Use Agreement (Attachment # 1). The original intent and scope for the improvement project included improvements specifically to the playing field to benefit recreation 13 300 and sports users, including accessible pathways, new dugout and backstop fencing, new spectator bleachers and public restroom facilities. However, through the course of coordinating the project with ESUSD, and through discussions at the City/School Affairs Committee meetings, Mayor Boyles and Councilmember Nicol are recommending the funds instead be used for the construction and shared use of a new parking lot located adjacent to the field. Please refer to Attachment #2 for a copy of the Richmond Street Field Parking Lot Site Plan. In 2016, El Segundo Unified School District developed a Long Range Facility Master Plan (LRFMP). It is important to note that at that time, The Learning Connection (TLC) "before and after school" program was included in the plan that identified the need to improve the facility. The budget for the program was minimal. The LRFMP was created to identify the greatest needs within the school district and no specific decisions were made regarding how to fund the plan moving forward. Copies of the Executive Summary of the Long Range Facility Master Plan have been provided to the City Council and are on file in the City Clerk's Office. The full report can be viewed at iitt )s:. clse7undousd.edilotest.cont/ESUSD°/a2OLRFMP°/a20 201.8-2029 11 OS 18. df. In 2018, the Board of Education explored and considered putting a General Obligation Bond Measure on the ballot in November 2018. As part of the process the LRFMP was refreshed to specifically outline the projects that would be funded by the proposed bond measure. With the escalating cost of construction, the plan was revised and the scope of work was reduced. The Learning Connection project was removed from the LRFMP as it required immediate attention due to one of the two buildings for TLC needing to be closed due to safety concerns. The Board moved forward and adopted the amended LRFMP on July 1, 2018 and the plan became the blueprint for the $92 million bond campaign. The Board also moved forward with several projects using funding from the sale of the Imperial site. The Board redesigned a staircase at Richmond Street School, completed fencing at Center and Richmond and demolished the TLC Building in September 2018 and began working with architects to develop a new facility. The new facility will result in acquisition of a new modular classroom and restroom building as well as a parking lot with 36 spaces (refer to Attachment #3 for an excerpt from the LRFMP related to Richmond Street Elementary School). While the voters approved Measure ES, a $92M General Obligation Bond Measure, the TLC development is not a part of the bond as it required immediate attention. Given that parking has been a challenge for users of both Richmond Street Field and the adjacent Plunge, the City/School Affairs Committee concluded that the additional 36 spaces would be a significant enhancement for the users of these recreational amenities. The parking lot at the site will be designated for school -related parking during normal school hours with six spaces dedicated specifically for TLC employees and parents through 6:OOpm on school days. The remaining 30 spaces will be available for field users from 6:OOam until the field closes at 9:OOpm. No overnight parking will be allowed and additional parking restrictions may be agreed upon (e.g. 2 -hour limit). The City/School Affairs Committee agreed upon a 70/30 methodology for the proportional cost share for the construction of the parking lot, reflective of the actual usage of the field. Usage data illustrated that City -regulated activities make up 70% of the use and ESUSD-related activities constitute 30% of the annual usage. Therefore, the cost for the project would be split proportionally, with the City's share estimated to be $307,206 and ESUSD responsible for the remaining $131,660. Further discussion ensued about the long-term goals and needs at Richmond Street Field and it was determined that the highest priority is the condition of the turf (e.g. leveling, drainage and irrigation) since it services multiple sports groups and users. Therefore, the City/School Affairs Committee is 301 recommending to fund the parking lot and enter into an agreement with ESUSD, and earmark the remaining $160,000 in funds for future turf -related renovations. Please note that the City and school district have a long history of successful joint use partnerships. Recent examples include: • In 2018, reached agreement for ESUSD to contribute up to $1 M to the City for repair of the Plunge. • In 2018, reached agreement for ESUSD to contribute $400,000 to reimburse City for equipment for the Aquatics Center. • In 2015, reached agreement for ESUSD to pay City for library services. • In 2012, reached agreement to continue the Joint Use Agreement for Public Recreation Facilities. • In 2012, reached agreement for joint use of Community Cable video studio and equipment. Consideration of the proposed agreement is scheduled for the August 27' School Board agenda. City staff will continue to work cooperatively with school district staff on this construction project and provide updates to City Council. 302 4347 • a,A. Attach 1 - ESUSD - Amend Restart Joint Use Agr #4347 AMENDED AND RESTATED JOINT USE AGREEMENT FOR PUBLIC RECREATION FACILITIES BETWEEN THE CITY OF EL SEGUNDO AND EL SEGUNDO UNIFIED SCHOOL DISTRICT OF LOS ANGELES COUNTY This AGREEMENT is made and executed this 19 day of Sept , 2012, between the CITY OF EL SEGUNDO, a municipal corporation ("City"), and the EL SEGUNDO UNIFIED SCHOOL DISTRICT OF LOS ANGELES COUNTY, a California public school district ("Distriefl. - RECITALS This Agreement is made with reference to the following facts and objectives: A. Chapter 10, Part 7 of Division 1 (Section 10900, et seg.) of the Education Code of the State of California authorizes and empowers school districts and cities to organize, promote and conduct programs of community recreation to establish systems of playgrounds and recreation, and acquire, improve, maintain and operate centers within, or without the territorial limits of the city. B. City owns, operates and maintains certain public recreation facilities known as El Segundo Recreation Park (401 Sheldon Street); El Segundo Library Park (600 Block Main Street); El Segundo Hilltop Park (Maryland Street and Grand Avenue); Urho Saari Swim Stadium (219 West Mariposa); Acacia Park (623-25 West Acacia Avenue); Washington Park (Washington Street at Palm Avenue); Constitution Park (Washington Street between Palm and Maple Avenue); Sycamore Park (Sycamore Avenue and California Street); Kansas Park (Holly Avenue and Kansas Street); Candy Cane Parkette (100 Block Whiting Street); Campus El Segundo Athletic Fields (2201 East Mariposa Avenue); Freedom Park (Illinois Street between Mariposa Avenue and Holly Avenue); Independence Park (Washington Street between Walnut Avenue and Sycamore Avenue; Camp Eucalyptus (641 California Street); El Segundo Teen Center and Skatepark (405 East Grand Avenue); The Lakes at El Segundo Golf Course (400 South Sepulveda Boulevard); and certain improvements, including landscaping, lighting, utilities and other fixtures on the property adjacent to the Richmond Street School (the "City Owned Facilities'). The City also operates and maintains certain improvements, including a ball field, turf areas, landscaping, lighting, utilities and other fixtures on the property adjacent to the Richmond Street School located at 615 Richmond Street (the "615 Richmond Street Improvements"). The 615 Richmond Street Improvements and City Owned Facilities shall be collectively defined as the "City Facilities." C. District owns, operates and maintains certain school facilities known as El Segundo High School (640 Main Street); Center Street School (700 Center Street); El Segundo Middle School (332 Center Street); School District Offices (641 Sheldon Street); Richmond Street School (615 Richmond Street); and Eagles' Nest Preschool (641 Sheldon Street). The foregoing properties shall be defined as the "District Facilities." 303 4347 • AS D. The aforementioned facilities are available for such uses as described in Recital A, when such use will not interfere with the owning party's use of the facilities. E. City and District have found that it will be to the public interest, economically and practically, to cooperate with each other in regard to the recreational use of the aforementioned facilities and therefore desire to enter into an agreement pursuant to the provisions of said Chapter 10 of the Education Code. F. City and District previously entered into that certain agreement governing the joint use of their facilities dated September 12, 1990, which was subsequently amended on August 21, 1991 and amended and restated pursuant to that certain agreement dated December 8, 1992. City and District also entered into that certain Funding Agreement dated September 21, 1999, which was amended on September 19, 2000, wherein City generally agreed to pay District $250,000 annually to provide student services and maintain its facilities (the "Funding Agreement"). The Funding Agreement was subsequently superseded by that certain funding agreement between City and District dated June 19, 2001, as subsequently amended pursuant to that certain First Amendment to Agreement No. 2893, dated July 17, 2007; that certain Second Amendment to Agreement No, 2893, dated September 16, 2008; and that certain Third Amendment to Agreement No, 2893, dated March 23, 2011. These agreements are collectively referred to as the "Prior Agreements." G. City is concerned with the continued quality of education, recreation and extracurricular activities that its residents, particularly its minor residents, receive and desires to provide financial and staff support to District for purposes of maintaining and enhancing the availability of these services. H. Such services benefit the youth of EI Segundo by providing such youth with vital services that will lessen the need for City services such as police and park and recreation services and will result in better educated and healthier youth in the City. 1. City believes that District's educational services play a critical role in providing the City with future citizens that will dedicate their time and knowledge to the community and thereby increase the quality of life in the City of EI Segundo. J. The benefits provided to the District herein shall be in addition to in-kind and other contributions provided to the District by the City, which are anticipated to total approximately $800,000 for fiscal year 2012-13. These in-kind services include but are not limited to the services approximately described on Exhibit A. K. City and District hereby seek to amend and restate the Prior Agreements and add additional properties subject to the terms provided herein. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties agree as follows: 304 4347 . -,Iopg 1. Term. This Agreement is for the tetnY of ten (10) years, commencing on Sept. ts, 2012, and terininating Sept. 20, 2022 This Agreement maybe renewed or extended upon mutual written agreement of the parties. 2. District's Use of City Facilities. City agrees to allow District to utilize the City Facilities for educational programs, events or uses, under the direction and supervision of District in accordance with a schedule acceptable to City and District, provided, however, that such scheduled use cannot at any time interfere with the use of the City Facilities or equipment for the regular conduct of City -authorized recreation programs, events or uses. District will have priority over non -City authorized recreation programs, events or uses in the scheduling of City Facilities. 3. City U&ofDrst 'ct Facilities. District agrees to allow City to utilize the District Facilities for programs, events or uses, under the direction and supervision of City in accordance with a schedule acceptable to City and District; provided, however, that such scheduled use cannot at any time interfere with the use of the District Facilities or equipment for the regular conduct of school programs, events or uses. City will have priority over non -school programs, events or uses in the scheduling of District Facilities during periods when they are not used for school purposes. 4. E gi ment and Pers nnel. Each party hereto agrees to conduct and supervise their respective programs, events and uses an the other party's facilities in conformance witli their respective policies and budget limitations. It is agreed further in this regard, that the parties must provide all expendable supplies and materials and must furnish and compensate all personnel necessary to conduct their respective programs and activities, except as may be mutually agreed upon by City and District from time to time during the terms of this Agreement and as provided by law. 5. Rules and Regulations. During the conduct of such progfams and activities, each party may formulate and enforce such rules and regulations as are acceptable to the other party, and are necessary to maintain proper standards of conduct and safety on said facilities for all age groups. 6. Duty to Repair. Each party agrees to comply with all existing rules regulating their respective properties including, without limitation, cleanup atter using the property. Each party must repair, cause to be repaired, or reimburse the other for the cost of repairing damage to said facilities occurring during the period of use by that party, except where such damage may be attributed to ordinary or reasonable use of such facility. Except as otherwise provided for in this Agreement, each party will be responsible for normal operation, maintenance and repair of its own buildings and facilities. It is understood that both parties have the tight in their respective sole and absolute discretion to make one or more of their facilities unavailable for use by the other party for purposes of repairing or making alterations to the facilities or because the facility is unfit for public use. 7. Alterations. Neither party may make, or cause to be made, any alterations to the other's property, or any part thereof, without the other's prior written consent. This section shall not apply to the 615 Richmond Street Improvements. 305 1347 • ji 8. Indemnification. A. District's Indemnification. District must defend and hold City, its city council, officials, officers, agents and employees, free and harmless from any liability for loss, damage, injury or death to persons, or damage to or loss of property, including City property, arising out of District's use of the City Facilities or any building, facility or equipment located thereon. B. Ci 's Indemnification. City must defend and hold District, its Board of Education, officials, officers, agents and employees free and harmless from any liability for loss, damage, injury or death to persons, or damage to or loss of property, including District property, arising out of City's use of the District Facilities or any building, facility or equipment located thereon. 9, az ouslToxic Waste. Neither party has nor, to their 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 the District Facilities or City Facilities in violation of any law or regulation. The parties agree that they will not use, generate, store or dispose of any Hazardous Material (as defined below) on, under., about or within their properties in violation of any law or regulation, 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. Sins. Neither party may place any sign upon the other's property without the owner's prior written consent. The requesting party must pay for all costs of any approved signage and comply with all applicable sign codes and ordinances. 11. Insurance. A. District's Duty to Insure. District must keep in full force and effect during the term of this Agreement public liability insurance, insuring and protecting City and District from and against any and all liability of City for damages arising out of or connected with use by District, its agents, employees, permittees, and students of the City Facilities or or any building, facility or equipment located thereon. All public liability insurance required hereunder must be in the minimum amount of Ten Million Dollars ($10,000,000) and a certificate of such insurance showing City as additional insured must be provided to City. Said certificate must provide that City will receive thirty (30) days notice of cancellation of said policy. B. Ci 's Duty to Insure. City must keep in full force and effect during the term of this Agreement public liability insurance, insuring and protecting City and District from and against any and all liability of District for damages arising out of or connected with use by City, its agents, employees, and permittees of the District Facilities or any building, facility or equipment located thereon. All public liability insurance required hereunder must be in the minimum amount of Ten Million Dollars ($10,000,000) and a certificate of such insurance showing District as additional insured must be provided to District. Said certificate must provide that District will receive thirty (30) days notice of cancellation of said policy. 4 3 4 7 . JJ 12, Limitations on- . Neither party may permit any person or organization to use any of the facilities, buildings or accessories thereto where such use is inconsistent with the provisions of federal, state or local laws, including without limitation, Section 10900 through 10916 of the Education Code of the State of California, the El Segundo Municipal Code, or adopted City or District policies. 13. Use Schedules. District Superintendent of the School District and the City Manager of the City, or their designees, are hereby authorized and directed by their respective parties to develop necessary schedules and/or details in connection with the operation of the facilities pursuant to this Agreement which are consistent with the above -stated purposes. 14. Fundin 4g f District Services. In addition to any in-kind or other contributions the City elects to provide in its sole, absolute and unfettered discretion, City must, on or before October 1, 2012 and far each of the next three (3) years thereafter by October 1, pay District Two Hundred Fifty Thousand Dollars ($250,000) annually, for a potential total of One Million Dollars ($1,000,000). District must use such funds for providing; student services and maintenance of facilities that serve the needs of District students and are not being funded by other sources. In the event that City determines that it is not in City's best interest to make any one or more of the payments required pursuant to this section (except for the first payment), City can terminate its obligation to make such payments by giving District thirty (30) days advance written notice of its intent to cancel its payment obligation hereunder for the fiscal year. In the event that City determines that it will not make a payment for a particular fiscal your, this Section will only require payment of costs for the current fiscal year and not any prior fiscal year in which the City decided not to make a payment. 15. Termination. Either party may terminate this Agreement at any time with or without cause upon written notification. However, if District terminates this Agreement during the first four (4) years of this Agreement, and City has made a payment to District pursuant to Section 14 of this Agreement, then District shall be obligated to refund a pro -rata amount of the annual payment made to District, if any, in the year the Agreement is terminated. Termination will be effective thirty (30) days after receiving notification. By executing this Agreement, the parties waive any and all claims for damages that may otherwise arise from early termination under this section. 16. Suwessors and Assi is. This Agreement is binding on the assigns, transferees and successors in interest of City and District whether said successor in interest is a unified school district or other political entity. 17. Employees. For purposes of this Agreement, all persons employed in the performance of services and functions for the City shall be deemed City employees and no City employee shall be considered as an employee of die District under the jurisdiction of the District, nor shall such City employees have any District pension, civil service, or other status while an employee of the City. For purposes of this Agreement, all persons employed in the performance of services and functions for the District shall be deemed District employees and no District employee shall be considered as an employee of the City under jurisdiction of the City, nor shall such District employees have any City pension, civil service, or other status while an employee of the District. 307 4347 . X1;4 18. Entire A2reement. This Agrecmelt represents the entire understanding of City and District with respect to the subject matter herein and all prior written and oral agreements regarding the subject matter herein are superseded by this Agreement. 19. Assi ment, Neither party may assign this Agreement or any interest herein. Any such attempted assignment will be void. 20. Natives. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this Agreement or by low to be served on or given to either party by the other party will be in writing and will be deemed served when personally delivered to the party to whom they arc 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: District EI Segundo Unified School District 841 Sheldon Avenue EI Segundo, CA 90245 C& City Clerk 350 Main Street M 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. 21. Acte tante of Facsimile Si natures. The parties agree that agreements ancillary to this Agreement and related documents to be entered into in connection with this Agreement 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. 22. G veriinst This Agreement 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 Agreement will be in Los Angeles County, 23. Partial Invalid -sty. Should any provision of this Agreement be hold by a tout of competent jurisdiction to be either invalid or unenforceable, the remaining provisions will remain in effect, unimpaired by the holding. 24. Construction. The language of each party of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party. 25. AuthoriW—No—crification. The parties represent and warrant that all necessary action has been taken by the parties to authorize the undersigned to execute this Agreement and 308 4 3 4 I. j ,+.A to engage in the actions described herein. 1"his Agreement may be modified by written agreement. City's City Manager, or designee, may executc such amendment on behalf of City. 26. CounteMgLs. This Agreement may be executed in any number or Counterparts, each of which will be an original, but all of which taken together will constitute one instrument executed on the same date. IN WITNESS WHEREOF, the parties hereunto have executed this Agreement by their officers duly authorized. EL SEGUNDO UNIFIED SCHOOL DISTRICT CITY OF EL SEGUNDO By F --- By Superintendent Carr ]acn n, Mayor Approved As To Form: Attest; District Counsel By ,,l - 1- . �,.f, . Tr�y� '1 eaver,�Gi Approved As To Form' Mark Hensley, City Attorn 309 4.347'•,=.. EKHIBITA ':t CITY:OFEi, SEGUNDO Irl-KIND"OTHER CONT OTIONS TO SCYJ00L DISTRICT "Pre ectad" FISCIL'YEAR2012-2013 p6lice Aelxrrlme►tf, $ 1-91,9.7.6 SRO 100 overtitralhours of donated f ib6frb*PoliceDdpart(feotl><tif, plum, etc) 35.D0i1 Pollee Deparbria-t:Total 232,970 Fane Depar+mem 45 }lours ofcionatodattaigbt time. kom Fire Dept forfoolball:games. 3;320 50 hours of donated straight tinia from Fir:: Prevention Inspections (An itutd Irispcctions, sprinklers, etc) 11980 56 Fire I)epartmrut emetgoncy responses 100•fioursdon ated rintc-fbr Workability Program ipStudent Workers[ ireai)ept 5,445 _, 2=845 Fire D eparhn enr To tal 13j. 50 Rev-eaflon. wtdParks MiintCi,ar m preWation and trtilitles flor Riamond St; S.ehoDl Field Maitucaattce, preparation and utilities for RocrbationPark Stevenson, Field 33,306 Maintcnance,preparation and utliltica for Recreation Park Softball F[61d 33,904 Suppilea for Urho Saari'Swirii Sled ium 1,000 18,4110- Lifeguards for Vrho.Saari Swim Stadium durftg,4lWS0fioo1 Athletics Stafffor school ovortts atTeen.Center SOU $,goo Rental value for Recreation Pnrk Stcvsnsou field Rental value for Recreation Park Softball Ffeid 3,6000 30,806 Rental value for-Urho Saari Swim Stadium -Rental value for:Csrirpus l31 Segundo 12;200 Rental %mine for.Recreation Paiit.Beiketball &Tennis Courts 4,900 Rental valtic for Teen Center 1;300 .Recreation anoiParks7`0MI 185joo 19 Schmid Board Meotings tot live broadcaot, replays, and 2 DVD's per mocong 2,540 Graduations - ESHS, ISMS and Arena 1,400 -SHS Independent Study videc Class 7,206 El Segundo School UpsorrifngEvept Pr=06on 00 ESHS Sports Coverage 4,300 Education Foundation Event Promotion &&vent Coverage: 2,700 Connecta; Plays & Miso:eients - &SHS, ESMS, Richmond St., and Contbr.•St 7,900 My'sfaff7'oral 31,600 Reereadon and Parks TeW 2IG;7ti1]' Public Works Facility.Maintenance for Urho Saari Swim Stadium t0j100 Chemical and-suppiics for Urho Saari Swirit Stadium 5;500 Utilitfcs -.gas, water and electricity far Urha Saari Swim Stadium _ 1g:700 Public Works Total 30,d -0 Lfbrerk- Library Staff Salaries &:Benefits 205,600School School Library Books & Motorials 4,500; SharedOnliuc Critalbg Updhtcs and Maintenance 5.000 1breryTetal 215,100 Fbel ar►d maintenance of Q0 vehicles 3,000 Totalin-kind .C,datiibutions to School District 718,120 Gxrssb4Gti*� atRibltmondStreet, CenterStreet&EiSegundo MiddleSchool $0,060 Ca .Loontributim 250,000 Gradd.t4talventrib.0196 TS I,U48,120 U:1Budget 12.131CI1y-Wide CoslslinMrid School District FY 1 2-1 3 012 812 01 28;28 AM 310 Attach 2 - Richmond Field Layout .••k. w. r PE� ---------------------------------------------- .--------------- . ------------------- Q I Q L6 47 d 1 � i -.-.-- j j ! — - ! -- — `i'- - I ypi I I - I I Q� F g . a rnI a, �I 5 Ij MI W ...� Z ■ �J Q D ■ �t Q i T :- Q ! Z o d. N Q; O a o z W f - ----------•—•—•—•—•_-_•-svl I�JiIIA` — — — _ _ _ _ _ i = 0 W 311 stina School Site Information IP LO 16 -UDQ,BLVD E EL-SEGU JD A 0 a e oil I. ad j 4 ESUSD LONG-RANGE FACILITY MASTER PLAN (2018 - 2028) EI Segundo Unified School District 2018 Amended Long -Range Facility Master Plan 0EVA Executive Summary LEGEND * FRONT ENTRANCE A ADMINISTRATION AR ART C CLASSROOM CL COMPUTER LAS K KITCHEN KO KINDERGARTEN L L+BRARY M MUIfC MPR MULTIPURPOSE OF OFFICE PC PORTABLE CLASSROOM PE PHYSICAL EDUCATION PR PORTABLE RESTROOM R RESTROOM RL READING LAE S SCIENCE SE SPEC I AL EO U CATION ST STAGE T TECHNOLOGY TK TRAN5.IUNCERGARTEN DROP OFFIDRIVE THROUGH LANE LANDSCAPE _MAJOR MODERNIZATION LIFE CYCLE COSTS ® NEW BUILDING UBE CONVERSION SOLID SHADE C7 DEMO PUILOING Note: The 2018 Amended Long -Range Facilities MasterPlan document, approved by the ESUSD Board of Education on July 10, 2018, has been adjusted to vertical format for inclusion in herein. 1.74 NOVEMBER 1, 2018 313 r. SECTION 1 // EXECUTIVE SUMMARY4]�,� 0EI Segundo Unified School District 2018 Amended Long -Range Facility Master Plan 3Executive Summary Note: The 2018 Amended Long -Range Facilities Master Plan document, approved by the ESUSD Board of Education on July 10, 2018, has been adjusted to vertical format for inclusion in herein. LEGEND * FRONT ENTRANCE A ADMINISTRATION AR ART C CLASSROOM CL CgMPUTpA IAD K KITCHEN KO KINDERGARTEN L LIBRARY M MUSIC MPR MULTIPURPOSE OF OFFICE PC PORTABLE CLASSROOM PE PHYSICAL EDUCATION PR PORTABLE RESTROOM R RESTROOM RL READING LAB S SCIENCE SE SPECIAL EDUCATION ST STAGE T TECHNOLOGY TK TRANS -KINDERGARTEN DROP OFF/DRIVE THROUGH LANE LANDSCAPE _MAJOR MODERNIiAT10N kk N •Y Rif rs 4 7.75 ■� 314 LIFE CYCLE COSTS NEW BUILDING USE CONVERSION SOLID SHADE CDEMO BUILDING kk N •Y Rif rs 4 7.75 ■� 314 ESUSD LONG-RANGE FACILITY MASTER PLAN (2018 - 2028) EI Segundo Unified School District 2018 Amended Long -Range Facility Master Plan ® Executive Summary New Safe and Welcoming Front Entry and Administration Modernization / Expansion (Including new security portal, etc.) New Perimeter Site Ornamental Fencing (located at Kindergarten area)- Custom Fence (300 LF) Replace existing windows Campus -wide New 2 -Story Classroom Addition (8,000 SF) (Including six (6) flexible classrooms/labs, restrooms, elevator, storage, etc.) Demo and Reconfiguration of Fire Access Lane, existing portable removal - Related to 2 -Story Classroom Addition (Allowance) Site Power Upgrade (Allowance) New Connector Corridor Conversion (Includes corridor, teacher workroom, special education resource room, etc.) New Outdoor "Solid Shade" Structure at Kindergarten Existing Restroom "Accessibility" Modernization Innovative "Next Gen" Learning Environment (Including flexible furniture, casework, teaching station, etc.) Note. The 2018 Amended Long -Range Facilities Master Plan document, approved by the ESUSD Board of Education on July 10, 2018, has been adjusted to vertical format for inclusion in herein. 1.76 NOVEMBER 1, 2018 315 SECTION 1 // EXECUTIVE SUMMARY EI Segundo Unified School District 49 2018 Amended Long -Range Facility Master Plan Executive Summary School Site Master Plan : Level -1 (Multi -Level Sitej General Notes: • The level of modernization can range from majorto light upgrades and will be identified at the design phase based on District/ School Site priority. • Life cycle costs and needs may occur in all phases. An allowance is provided for some critical projects and can be identified at the design phase based on DistricU School Site priority. New Buildings/New Construction locations are conceptual at the Master Planning stage A Note 41: During the 2018- 19school year, and subject to change or be adjusted based on program development, detail design, The Learning Connection diagram depidedm detailed site surve /site investigation, DSA and otherA enc requirements. the strplaneet safe ifean silo prntly in progn=recess ived.ng at Y 9 Agency q Sfreetsa'e and sde proceeds received. Note: The 2018 Amended Long -Range Facilities Master Plan document, approved by the ESUSD Board of Education on July 10, 2018, has been adjusted to vertical format for inclusion in herein. LEGEND ■ FRO NT EN TRA NCE A ADMINISTRATION AR ART C CLASSROOM CL COMPUTER LAB K KITCHEN KG KINDERGARTEN L LI BARRY M MUSIC MPR MULTIPURPOSE OF OFFICE PC PORTABLE CLASSROOM PE PHYSICAL EDUCATION PA PORTABLE RESTROOM it RESTROOM RL READING LAB S SCIENCE SE SPECIAL EDUCATION 51 STAGE T TECHNOLOGY TK TRANS -KINDERGARTEN DROP OFFIDRIVE THROUGH LANE E� LANDSCAPE Pall 1.77 1 316 MAJOR MODERNIZATION E� LIFE CYCLE COSTS E� NEW BUILDING I� USE CONVERSION ® SOLID SHADE E—1 DEMO RUILDINO Pall 1.77 1 316 ESUSD LONG-RANGE FACILITY MASTER PLAN (2018 - 2028) EI Segundo Unified School District 43) 2018 Amended Long -Range Facility Master Plan Executive Summary School- Master Plan : Level -2 (Multi -Level Site) General Notes: • The level of modernization can range from major to light upgrades and will be identified at the design phase based on District/ School Site priority, • Life cycle costs and needs may occur in all phases. An allowance is provided for some critical projects and can be identified at the design phase based on District/ School Site priodly. New BuildingsrNew Construction locations are conceptual at the Master Planning stage A Note 41: Dudng the 2018-19schoolyear, and subject to change or be adjusted based on program development, detail design, The Learning Connection dt'agrarndepiaedon detailed site surve /site investigation, DSA and otherA enc requirements. Iheplaniscrnrentleirocee sreceess ived.ng imperial Y 9 9 Y q Street sale and site proceeds received. Note: The 2018 Amended Long -Range Facilities Master Plan document, approved by the ESUSD Board of Education on July 10, 2018, has been adjusted to vertical format for inclusion in herein. LEGEND * FItONT ENTRANCE AADMINISTRATION AR ART C CLASSROOM CL COMPUTER LAS K KITCHEN KG KINDERGARTEN L LIBRARY M MUSIC MPR MULTIPURPOSE OF OFFICE PC PORTABLE CLASSROOM PE PHYSICAL EDUCATION PR PORTABLE RESTROOM R RV TR00M RL READING LAS S SCIENCE SESPECIAL EDUCATION ST STAGE T TECHNOLOGY TK TRANS -KINDERGARTEN DROP OFF/DRIVE THROUGH LANE LANDSCAPE MMAJO R MODl RNIZATION LIFE CYCLE COSTS NEW BUILDING USECONVERSION SOLID SHADE C7 DEMO ■UILDING 1•78 NOVEMBER 1, 2018 317 F, aa!,� SECTION 1 // EXECUTIVE SUMMARY EI Segundo Unified School District 2018 Amended Long -Range Facility Master Plan ® Executive Summary LONG-RANGE FINANCIAL PLAN SUMMARY - RICHMOND STREET ELEMENTARY SCHOOL Life -Cycle / Routine Replacements & Operational TOTAL L"yols Cost Estimate (includes 15% Soft Costs) $23,000 $363,630 {2,873,764 $1969,341 $629,030 Totals for each priority are estimated for projected lifecycle repairs and replacemerds. These are not included in New Safe and Welcoming Front Entry and Administration Mod amaation IExpansion Qncluding s 636,260 new security portal, etc.) New Perimeter Site Ornamental Fencing (located at Kindergarten area) -Custom Fence (300 LF) $ 66,260 Replace existing windows Campus -wide 624,000 Now 2-Slory Classroom Addition (8,000 SF) (Including six (6) flexible classroormillabs, restrooms, $ 4,660,000 elevator, storage, etc.) Demo and Reconfiguration of Fire Access Lane, existing portable removal -Related to 2 Story $ 186,000 Classroom Addition (Allowance) Site Power Upgrade (Allowance) f 338,000 New Connector Corridor Conversion (includes corridor, tescherworkroom,special education S 218.400 resource room, etc.) New Outdoor "Solid Shade" Structure at Kindergarten S 196,000 Existing Restroom "Accessibility" Modernization f 292,600 Innovative"Next Gen" Learning Environment (Including flexible fumbure,casework, teaching 5 466,000 Static n, OIC.) TOTAL Now Cc nstruction I Major Modernization Campus Improvements (induales 30% Soft $ 1428,600 $ 6,213,000 = f 1,173,900 $ 7,916,400 Corti} Path of Travel Allovience per Priority Phasel Required Code Related Upgrades (Esfim ated 20% $ 246,700 $ 1,042,600 S 4 234,780 $ 1,623,080 Allocation) GRAND TOTAL $ 1,474 200 ; 6,255,1300 i S 1,408,680� All Cost AllovancesrEsfimales Refect Forecasted January 2019 Dollars//Construction Cost +Project Soft Costs//Costs are subject to change based on market conditions, and when projects are actually bid and executed by the District. "So0 Costs: AA= fees, misc. penng grtestino fees, contractor overheagrotil. project contingency. elc. Note: The 2018 Amended Long -Range Facilities Master Plan document, approved by the ESUSD Board of Education on July 10, 2018, has been adjusted to vertical format for inclusion in herein. 318 1.79 EL SEGUNDO CITY COUNCIL AGENDA ITEM STATEMENT AGENDA DESCRIPTION: MEETING DATE: August 20, 2019 AGENDA HEADING: Presentations Receive proposed Fiscal Year (FY) 2019-20 Citywide Operating and Capital Improvement Program (CIP) Budgets and review potential revenue enhancement options (Fiscal impact: N/A) RECOMMENDED COUNCIL ACTION: 1. Review proposed FY 2019-2020 Citywide Operating & Capital Improvement Program (CIP) Budgets. 2. Review potential Revenue Enhancement Options. 3. Provide Direction as necessary. ATTACHED SUPPORTING DOCUMENTS: A. Proposed three-year Capital Improvement Program (CIP) STRATEGIC PLAN: Goal: 5(b) Champion Economic Development and Fiscal Sustainability: El Segundo approaches its work in a financially disciplined and responsible way Objective: 2 The City will maintain a stable, efficient, and transparent financial environment FISCAL IMPACT: $ (0) Amount Budgeted: $0 Additional Appropriation: N/A PREPARED BY: Juliana G Demers, Revenue Manager REVIEWED BY: Joseph Lillio, Director of Finance 8rc SL� APPROVED BY: Scott Mitnick, City Manager/Pdd- DISCUSSION: Proposed FY 2019-20 Citywide Operating and Capital Improvement Program (CIP) Budgets A. Overview of City-wide FY 2019-20 Proposed Budget i. Overview of General Fund ii. Overview of Internal Service Funds, Enterprise Funds, Debt Service Fund, and Special Revenue Funds. iii. Review of proposed CIP Budget B. Review of City reserves C. Recommendation on General Fund reserve level D. Recommendation on addressing unfunded pension liabilities E. Discussion on potential revenue enhancements 14 319 F. Review of FY 2019-20 Budget preparation calendar Revenue Enhancement Options In general, a city's revenues take the form of payments for services (fees), taxes, and allocations from state and federal governments. Revenues available to fund local programs are largely restricted in their use. Those generated from specific sources must be used only for the intended services. Revenues that are considered discretionary are categorized as General Fund revenues, usually consisting of sales tax, property tax, and other general tax revenues (utility user tax, business license tax, transient occupancy tax, real property transfer tax). Local governments are constantly challenged to maximize, and diversify new funding sources in order to maintain services and ensure long-term financial stability. To meet current and future service expectations and ensure the maintenance of current service levels during upcoming economic challenges, staff has evaluated existing revenue sources and new revenue options, including special revenue sources dedicated to public safety and infrastructure. The results are outlined as follows: UTILITY USERS TAX (UUT) A Utility User Tax (UUT) may be imposed by a city on the consumption of utility services, including (but not limited to) electricity, gas, water, sewer, telephone, refuse and cable television. The City of El Segundo imposes UUT on the consumption of a few utility services for the nonresidential consumer. Current rate and categories are displayed below: UUT Description Current rate on Commercial Accounts UUT Gas/Cogeneration 3% 2 UUT Electric 3 UUT Water — 4 UUT Telecommunication UUT nre-paid wireless Revenue Enhancement from UUT collections may be accomplished by: 3% 3% 2% 1.5% 1. Expanding utility service categories to be taxable (for example sewer, cable TV, refuse collection) 2. Assess UUT on residential service 3. Increase current rates 320 UUT OPTIONS Maximum Estimated Impact on each household $ 63 $ 607 Residential assumptions: 7,000total households; avarage gas bill $ 40, avarage eletric/water/cable $100, avarage mobile $ 80, avarage Non Residential assumptions: cable avarage bill $300, sewer $60, Refuse $ 80 For each I% of UUT assessed in each category, the City would potentially receive additional revenue of $2.4 million annually from nonresidential and $400,000 from residential locations for a total combined estimated annual revenue increase of $ 2.8 million. For reference, the table on the following page outlines UUT rates from other Los Angeles County Cities: "N" represents nonresidential and "R" represents residential. 321 Estimated Additional Estimated Additional Current Rate FY 19-20 Estimated Yearly Revenue per No. Revenue Source (Commercial Only) Total Revenues yearly Revenue per each 1 /o non - each 1% Residential* residential 1 Gas/Cogeneration 3% $ 3,100,000 $ 25,200 $ 1,033,333 2 Electric 3% 2,000,000 67,200 666,667 3 Telecommunication 2% 850,000 67,200 283,333 4 Water 3% 320,000 84,000 106,667 5 pre paid wireless 2% 150,000 42,000 50,000 6 Sewer 0% - 50,400 86,400 7 Cable/Video 0% 84,000 86,400 8 refuse collection 0% - 18.480 115.200 Total $ 6,420,000 $ 438,480 $ 2,428,000 Maximum Estimated Impact on each household $ 63 $ 607 Residential assumptions: 7,000total households; avarage gas bill $ 40, avarage eletric/water/cable $100, avarage mobile $ 80, avarage Non Residential assumptions: cable avarage bill $300, sewer $60, Refuse $ 80 For each I% of UUT assessed in each category, the City would potentially receive additional revenue of $2.4 million annually from nonresidential and $400,000 from residential locations for a total combined estimated annual revenue increase of $ 2.8 million. For reference, the table on the following page outlines UUT rates from other Los Angeles County Cities: "N" represents nonresidential and "R" represents residential. 321 322 UUT Information Summary Listing - Cities in Los Angeles County city Intrastate Interstate Infl Wireless PrivateCom.* Video Electric Gas Water Sewer Trash Alhambra 5.00% R&N 5.00% R&N 5.00% R&N 5R00 5.00% N 5.00% N 5.00% N Arcadia 5.00% 5.00% 5.00% 5.00% 7.00% 7.00% 7.00% Baldwin Park 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Bell 10.00% 10.00% 10.00% 10.00% 10.00% Bellflower 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Burbank 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% Calabasas 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Carson 2.00% 2.00% Claremont 5.50% 5.50% 5.50% 5.50% r..50% 5.50% 5.50% 5.50% 5.50% Compton 8.50% 8.50% 8.50% 8.50% _ _ 10.00% 10.00% 10.00% Covina 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Cudahy3.75% R 8.00% N 3.75% R 8.00% N 3.75% R 8.00% N 3.75% R 8.00% N 3.75% R f 8.00% N 4.00% R 8.00% N 14.00% R 8.00% N 4.00% R 8.00% N 4.00% R 8.00% N Culver Ci 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% Downey 4.80% 4.80% 4.80% 4.80% 4.80% 5.00% 5.00% EI Monte 6.50% 6.50% 6.50% 6.50% 6.50% 7.00% 7.00% EI Se undo 2.00% N 2.00% N 2.00% N 2.00% N 2.00% N 3.00% N 3.00% N'1'3.00% N Gardena 5.00% 5.00% 5.00% 5.00% 5.00% Glendale 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 7.00% 7.00% 7.00% Hawthorne 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Hermosa Beach 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 6.00% 6.00% 6.00% Huntington Park 9.25% 9.25% 9.25% i 9.25% 9.25% 9.75% 9.75% 9.75% Inglewood 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 10.00% 10.00% 10.00% Irwindale 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% La Verne 5.75% 5.75% 5.75% 5.75% 5.75% 6.00% 6.00% Lakewood 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Lawndale 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% Lon Beach 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Los Angeles 9.00% 9.00% 9.00% 9.00% 9.00% 10.00% 10.00% L nwood 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00 / Malibu 4.50% 4.50% 4.50% 4.50% 4.50% 5.00% 5.00% Maywood y 4.00% R 7.00% N 4.00% R 7.00% N 4.00% R 7.00% N 4.00% R 7.00% N 4.00% R 7.00% N 4.00% R 7.00% N 4.00% R 7.00% N 4.00%7 7.00% N Monterey Park 3.00% R 5.50% N 3.00% R 5.50% N 3.00% R 5.50% N 3.00% R 5.50% N 3.00% R 5.50% N Norwalk 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% Paramount 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% Pasadena 8.28% 8.28% 8.28% 8.28% 8.28% 9.40% 7.67% 7.90% 7.67% Pico Rivera 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Pomona 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% Rancho Palos Verdes 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Redondo Beach 4.75% 4.75% 4.75% 4.75% 4.75% 4.75% 4.75% 4.75% San Marino 5.000%/. 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% San Gabriel 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% Santa Fe Springs 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Santa Monica 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Sierra Madre 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% South Pasadena 7.50% 7.50% 7.50% 7.50% 7.50% 1 7.50% Torrance 7 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.00% Vernon , 6.00% N 6.00% N 6.00% N 6.00% N 6.00% N 6.00% N 6.00% N 6.00% N 6.00% N Whittier 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% County of Los Angeles 11 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 322 BUSINESS LICENSE TAX 1. Update and Consolidation of Business Types and Increase on Base Rate The City of El Segundo's current business license tax program is detailed in Title 4 of the El Segundo Municipal Code. Most of the current language in Title 4 was developed in the 1960s and 70s, with revisions taking place by Ordinance in 1988, 1996, and 2000. The City's current Business License Tax program classifies businesses in 35 business categories including a "Business General- catch all" classification for business types that cannot be categorized in any of the thirty five descriptions. As technology continues to evolve, new business concepts started populating the market and displacing some of the standard business models. Recognized as one of the most "Business Friendly Cities" among 88 cities of Los Angeles County, El Segundo's strong infrastructure, fiber optic network, and skilled workforce makes it an ideal setting for housing the new wave of business models very often known as "disruptive technological business models". The City's Business License Tax program has not been updated to capture the new businesses and service models that exist in today's new economy. By updating the City's code, these new economy business models will become more appropriately identified in the code, better serviced, and more effectively assessed. In order to remedy this issue, staff has proposed a revision and update to the business classifications, as well as proposed a more simplified tax rate by creating fewer categories and allowing for tax exemption incentives for civic engagement activities and small to medium size residential based businesses. An example of this would be a creation of a small business exemption for businesses with annual gross income of $25,000 or less. For the purposes of this study, the base rate for FY 2020 is estimated at $110.00 with a proposed base rate increase of $50. Total Number of FY 2020 Base rate Business 7,000 $ 110.00 2. Sales Tax Credit (STC) Reduction FY 2020 Estimated Revenues (Base rate only) $ 770,000 Annual Revenue Estimate for a one-time $50 increase ...... ...... $ 350,000 In addition to the tax structure, the City currently offers a 40% sales and use tax credit to businesses to offset the cost of the Business License Tax. This credit was implemented as a business attraction tool. The current structure of this credit permits businesses to utilize this credit each year without a sunset date. Some businesses may be entitled to a sales tax credit if sales tax is collected and apportioned to the City of El Segundo. This credit is based solely on the 1% local sales and use tax allocated to the City and is calculated on the actual amount of sales and use tax received by the City that was generated by the business. The STC may offset up to 100% of the Business License Tax owed by a business. 323 In 2010, Measure N passed (1587/769) and the Sales Tax Credit was reduced from 50% to 40% (Ordinance 1439). Staff performed a fiscal impact analysis on the current STC from 2011 to 2019 and determined that businesses utilize an average of $1.3 million in sales tax credit to offset their Business License Tax payment each year. This represents about 12% of the total business license revenue or the equivalent of 2% of the total general fund revenues, which is not collected. The table below shows the total sales tax credit claimed (revenue loss) from FY 11-12 to FY 18-19 * % represents the volume of credits claimed from total exposure: 40% average After careful analysis, staff recommends leveling the playing field with a gradual reduction of the sales tax credit to be fully eliminated by FY 2022. The table below demonstrates the yearly reduction and the fiscal impact resulting in increased revenue generation starting FY 2021: Maximum Exposure (40% Sales Tax credit) Total Sales Tax Credit Claimed % FY18-19 $3,973,101 $1,087,518 27% FY 17-18 4,338,071 1,198,370 28% FY 16-17 3,626,866 1,320,048 36% FY 15-16 3,835,821 1,368,535 36% FY 14-15 3,577,053 1,370,039 38% FY 13-14 3,119,083 1,213,618 39% * % represents the volume of credits claimed from total exposure: 40% average After careful analysis, staff recommends leveling the playing field with a gradual reduction of the sales tax credit to be fully eliminated by FY 2022. The table below demonstrates the yearly reduction and the fiscal impact resulting in increased revenue generation starting FY 2021: **AssumingflatSales Tax revenues from FY19-20 to FY22-23 and 20% of revenues from County pool (actual tax base in El Segundo is $9,200,000) 3. Penalty Credit Under E.S.M.C. 4-1-28, the City currently offers a "credit for penalties paid" for any businesses that pay their Business License Tax late. The business can credit 50% of the penalty amount towards their Business License payment for the following year not to exceed the total tax due. Staff has reviewed the benefits and the financial impacts of this credit and recommends to eliminate this program which has become a reward for late payments. PENALTY CREDIT CLAIMED FY18-19 FY 20-21 FY 21-22 After FY 2022 Estimated Sales Maximum Sales Tax Maximum Sales Tax No sales Tax Credit Tax Revenue Credit allowed (20%) Credit allowed (10%) $11,500,000.00** $1,840,000 $920,000 $0 *(assuming 40% 699,200 349,600 0 claim the credit) Revenue 699,200 1,048,800 1,398,400 Generation **AssumingflatSales Tax revenues from FY19-20 to FY22-23 and 20% of revenues from County pool (actual tax base in El Segundo is $9,200,000) 3. Penalty Credit Under E.S.M.C. 4-1-28, the City currently offers a "credit for penalties paid" for any businesses that pay their Business License Tax late. The business can credit 50% of the penalty amount towards their Business License payment for the following year not to exceed the total tax due. Staff has reviewed the benefits and the financial impacts of this credit and recommends to eliminate this program which has become a reward for late payments. PENALTY CREDIT CLAIMED FY18-19 FY 17-18 FY 16-17 FY 15-16 FY 14-15 FY 13-14 $772 $34,569 $317,364 $28,780 $2,897 $4,188 324 SALES TAX The Sales Tax in El Segundo is 9.50 %. The legal maximum rate for sales taxes currently is 10.25%. Consequently, there is a maximum of 0.75% (or 3/4 cent) of Sales Tax that may be imposed in El Segundo. The County may impose taxes both within unincorporated areas and cities. If, however, a city already collects a local Use & Sales Tax up to the maximum of 0.75% for a total rate of 10.25 %, County regional tax cannot be collected within that city. On April 10, 2018, Measure C was approved by 84.97% of El Segundo voters. This Measure raises revenue for general City purposes by authorizing a 3/4 cent transfer and use tax ("sales tax.") within El Segundo. The tax is paid by purchasers of goods in El Segundo that are subject to sales tax. The tax, however, will only be collected if the County places a sales tax measure on a ballot and would only continue to be collected if the County's sales tax measure was legally approved by a majority of County voters. Under current law, Measure C prevents the County from imposing a sales tax within El Segundo and instead results in the City collecting available sales tax revenues. A revenue enhancement option is to bring Measure C back to the voters and request immediate application of the tax increase to the City of El Segundo, which would generate approximately $8.6 million in annual City sales tax revenues. All tax revenue would stay local and be guaranteed for use by the City to pay for general City operations and services. Current Sales Tax Revenues Estimated New (I %) Upon Enacting (0.75%) $ 11,500,000 $8,625,000 PARKING TAX Revenue Estimated Total Sales Tax Measure C Revenue $ 20,125,000 A parking tax applies to the rental of non-residential paid parking spaces in the City. The Parking Tax applies because a building owner or owner's agent who receives rent from a building tenant for the occupancy of a parking space is an operator who must collect and remit the tax from the parking space occupant to the City. The parking tax is due to the City from the parking operator, not directly from the parking customer. For the purpose of this study, staff estimated a 10% parking tax rate at $ 20.00 daily average rate and 20 days/month occupancy at 80%. Number of Paid Parking Spaces* Average daily rate* Estimated Average Yearly Revenue 4,620 $ 20.00 $ 1,774,080 *Source: https:llen.parkopedia.com/Parkinglel—segando PARCEL TAX A parcel tax is a form of property tax assessed at a rate based on the characteristics of a parcel—or unit of property—rather than a rate based on the assessed value of the property, which is the standard method of levying property taxes. A parcel tax rate can differ based on the type of property. For instance, improved and unimproved properties may have different rates, and residential and commercial properties may also have different rates. 325 For the purpose of this analysis, we will use the following: Single Family parcel: $20.00 per year with $ 1.00 yearly increase for 10 years Multifamily parcel: $ 40.00 per year with $ 1.00 yearly increase for 10 years Commercial parcel: $ 50.00 per year with $ 1.00 yearly increase for 10 years A parcel tax is considered a qualified special tax in California and may be imposed by a local unit of government, such as a city, county, school district, or special district. Special taxes are permitted by the California Constitution, and they require a two-thirds (66.67 percent) supermajority vote for approval. Parcel tax revenues can be used for any type of spending, including construction costs, employee salaries, school funding, and other projects or spending needs including additional funding for public safety. Units Year 1 Year 2 Year 3 Year 4 1 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Single Family2,540 $ 50.800 $ 53.340 $ 55,880 $ 58,420 $ 60,960 $ 63,500 $ 66.040 $ 68.580 $ 71,120 $ 73,660 Multi family 1,373 $ 54,920 $ 56,293 $ 57,666 $ 59.039 $ 60,412 $ 61,785 $ 63,158 $ 64,531 $ 65,904 $ 67,277 Commercial 1,153 $ 57.650 $ 58.803 $ 59.956 $ 61,109 $ 62,262 $ 63.415 $ 64,568 $ 65.721 $ 66874 $ 68.027 Estimated New Revenue S 163,370 $ 168,436 S 173.502 S 178.568 $ 183,634 1 S 188,700 S 193.766 S 198.832 S 203.898 S 208964 SUMMARY OF MINIMUN POSSIBLE ADDITIONAL REVENUE: All of the referenced revenue measures would require approval of four (4) out of the five (5) Councilmembers to approve placing the measure(s) on the general election ballot for voters to weigh in on. The next general election is slated for March 2020. If City Council supports moving forward with one or more of these options, staff would need direction on which option(s) to move forward with. The Measure(s) will then be developed and brought back for City Council discussion potentially for the September 16th City Council meeting. Any ballot measure would need to be finalized and approved by City Council no later than November 19th in order to be placed on the March 2020 general election. 326 Revenue Source Minimum Additional Estimated Revenue 1 Sales Tax (Measure C) — Additional 0.75% $ 8,625,000 2 Utility User Tax (UUT) Additional 1% 2,428,000 3 Parkin Tax —10% 1,770,000 4 Business Tax — Sales Tax Credit Elimination 1,400,000 5 Business Tax Change to Base Rate 350,000 6 Parcel Tax 132,345 $ 14,705,345 All of the referenced revenue measures would require approval of four (4) out of the five (5) Councilmembers to approve placing the measure(s) on the general election ballot for voters to weigh in on. The next general election is slated for March 2020. If City Council supports moving forward with one or more of these options, staff would need direction on which option(s) to move forward with. The Measure(s) will then be developed and brought back for City Council discussion potentially for the September 16th City Council meeting. Any ballot measure would need to be finalized and approved by City Council no later than November 19th in order to be placed on the March 2020 general election. 326 6 7a 8 9 10 11 76 12 13 7c 14 is 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 39 39 40 41 42 43 d4 45 46 47 48 49 City of EI Segundo 8/15/2019 THREE-YEAR CAPITAL IMPROVEMENT PROGRAM FY 2020-22 ...JECTS (FUNDS ALLOCATE1 Water Enterprise Fund 2019/20 FY 2020/211 Water Infrastructure Replacement (Annual Program) $ - $ S 2.000,000 Indiana Street Water Main Replacement 700,000 Grand Ave. Water Main Replacement 1.200,000 Water Valve Replacements 300,000 300,000 'fewer Enterprise Fund Sewer Infrastructure Replacement (Annual Program) 150,000 500,000 Lifeguard Pump Station Construction * 650,000 Acacia Park Construction 200,000 Gas taxi Prop C/ 58 1,t Measure R1 Measure M Roadway Rehabilitation (Annual Program) 700,000 500,000 500,000 FI Segundo Blvd. Improvements 500,000 7,500,000 Sidewalk Improvement and Construction (Annual Program) 300,000 250,000 250,000 Me r Grant a r Special Funds Police Firing Range Remodel (CIPAC Rank: #3) 250,000 Acacia Park Construction (CIPAC Rank: #2) 200,000 FCA - Park Vista Senior Housing Plumbing** 60,000 630,000 640,000 ADA Ramp Improvements 50,000 50,000 50.000 (General Fund Acacia Park Construction (CIPAC Rank: #2) 1,150,000 300,000 Richmond Field Renovation with ADA Accessibility ' 470,000 Community Cameras & Fixed License Plate Readers * 375,000 Boo Block McCarthy Court Street Improvement * 275,000 Washington Park Playground Replacement' 270,000 SW Black E. Walnut Ave. Drainage Improvement * 265,000 Access Control System -Facility Security for Police and Fire * 200,000 Hockey Rink Rehabilitation * 155,000 Main and Imperial Entryway Beautification Pr0}ect • 150,000 California Street Storm Drain Improvement * 150.000 The Plunge Replacement Scope Assessment * 100,000 Catch Basin Inserts Installations 100,000 Rec Park Softball Field Bleacher Replacement' 70,000 FCA _ Miscellaneous Improvement Projects (City Staff]' 65,000 GCA - Clubhouse HVAC Ductwork* 55,000 FCA - Library South Wall Waterproofing and Repair * 50,000 FCA - Various Masonry Walls and Floor Rehabilitiations* Total Previously Funded CIP Projects (all funding sources) Annual Scheduled Projects far the Facility Condition Assessment 30,000 7,S40,000 10,880,000 $ 4,240,000 1,000,000 Clty Hall Securityl[mprovements 1.000,000 Fad€€ty Program Reserve 750,000 1,000,000 360.000 Fiber Vault Lids Replacements 300,000 Teen Center Upgrades Including Skate Park and Basketball Court (CIPAC (Rank: #6) 200,000 600,000 Library Park Outdoor Seating / Activation (CIPAC Rank: #7) 120,000 Fitness Trail at Memory Row (CIPAC Rank: #4) 100,000 (Plunge Rehabilitation Funding (CIPAC Rank: #1) 1,000,000 1,500,000 Park Place Gap Closure and Grade Separation Project(Design] 300,000 300,000 Stevenson Field Fence Replacement (CIPAC Rank: #5y 270,000 (Library Elevator Renovation 125,000 Water Plant - Office Roof Replacement 55,000 City Hall Rooftop Duct and Interior ductworks 40,000 FS#2 Flooring Replacement 30.000 PW Yard NE Storage Roof Replacement and Masonry Wall Repairs 25,000 (Racquetball Court Flooring 20,000 (Miscellaneous Improvement Proiects (City staff) 20,000 IFS #1 Gym Interior Paint and Exterior Door Replacement 15,000 Library Reseal Exterior Windows 15,000 Camp Eucalyptus Anti -Erosion Sod and Landscaping 13,000 IFS #1 Water Heater Replacement 12,000 Pump Station #17 Pump Replacement Total UNFUNDED Need 2,470,000 $ 3,540,000 $ 800,000 3,960,000 TOTAL CIP EXPENOFTURE5& NEED S 10,010,000 $ 14,420,400 $ 8,200,000 327 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA STATEMENT AGENDA HEADING: Committee, Commissions and Boards AGENDA DESCRIPTION: Consideration and possible action to announce the appointment to the Library Board of Trustees and Environmental Committee. (Fiscal Impact: None) RECOMMENDED COUNCIL ACTION: 1. Announce the appointees; and/or, 2. Alternatively, discuss and take other possible action related to this item. ATTACHED SUPPORTING DOCUMENTS: FISCAL IMPACT: None Amount Budgeted: $None Additional Appropriation: N/A Account Number(s): STRATEGIC PLAN: Goal: 1 Enhance Customer Service Engagement Objective: 1(b) The City engages in regular, intentional information gathering ORIGINATED BY: Mishia Jennings, Executive Assistan*r REVIEWED BY: 1 APPROVED BY: Scott Mitnick, City Manage1 BACKGROUND AND DISCUSSION: Committee/Commission and Number of Appointee(s) Term Expiration Board Openings Library Board of Trustees I Two I Janice Merva I Full Term Expires June 30, 2022 Carol Ericson Full Term Expires June 30, 2022 Environmental Committee Two Come Zupo Full Term Expires June 30, 2023 Sarah Brockhaus I Partial Term Expires June 30, 2021 is 328 EL SEGUNDO CITY COUNCIL MEETING DATE: August 20, 2019 AGENDA ITEM STATEMENT AGENDA HEADING: New Business AGENDA DESCRIPTION: Letter of support from the mayor for Senate Bill 54 and Assembly Bill 1080, the California Circular Economy and Plastic Pollution Reduction Act RECOMMENDED COUNCIL ACTION: 1. Direct staff to prepare a letter of support from the mayor for Senate Bill 54 and Assembly Bill 1080; and/or, 2. Alternatively, discuss and take other action related to this item. ATTACHED SUPPORTING DOCUMENTS: Sample letter of support from Dana Point mayor Letter of opposition from the Los Angeles Chapter of the California Restaurant Association FISCAL IMPACT: None PREPARED BY: Barbara Voss, Deputy City Manager K REVIEWED BY: Mayor Drew Boyles APPROVED BY: Scott Mitnick, City Managerw(A6 SVA BACKGROUND & DISCUSSION: Senate Bill 54 and Assembly Bill 1080 aim to reduce all single -use packaging and the top 10 single - use plastic products by 75%. Proponents of the bill site packaging and plastic pollution as significant problems for our waste stream, our environment and our health. The goal of the legislation is to reduce the production of single -use packaging and products, and require that any remaining products that are single -use must be recyclable or compostable. If these bills pass, California will be a leader in the nation in single -use plastic policy. Plastic pollution has is a global problem for oceans and the marine environment, with an estimated 17.6 billion pounds of plastic entering the oceans annually. As a beach city, plastic waste in the ocean has a direct impact on the El Segundo community. Support for this bill would improve water quality, encourage recycling and divert waste from landfills. At the direction of City Council, staff will prepare a letter from the mayor in support of Senate Bill 54 and Assembly Bill 1080. 16 329 Z.01 A CITY OF ANA POINT /P1 June 20, 2019 The Honorable Ben Allen California State Senate State Capitol Building, Room 4076 Sacramento, CA 95814 RE: Senate i3i[I 54 Alien California Circular Economy and Plastic Pollution Reduction Act Notice of SUPPORT Dear Senator Allen: CITY COUNCIL Joseph L. Muller Mayor Paul N Wyatt Mayor Pro Tem Jamey M. Federico Debra Lewis Richard A. Vlczorek The City of Dana Point is pleased to Support Senate Bill (SB) 54 (Allen), the California Circular Economy and Plastic Pollution Reduction Act. This bill directs the California Department of Resources Recycling and Recovery (CalRecycle) to adopt regulations requiring manufacturers to source reduce and manufacture all single -use packaging to be effectively reusable, recyclable or compostable by 2030. The bill also requires all priority single -use plastic products distributed and used in California to be recyclable or compostable by 2030. This bill would both reduce the plastic pollution that many single -use plastics cause in our waterways and oceans and remove materials that are often landfilled from entering the waste stream. If local governments are to meet the current statewide solid waste and recycling goals, more materials will need to be recycled or diverted from landfills. By making priority single -use plastics recyclable or compostable, SB 54 would help local governments recycle more materials, throw less waste into landfills, and advance towards meeting statewide solid waste and recycling goals. The City of Dana Point is supportive of meeting these goals and applauds efforts that help local governments achieve them. Another important component of SB 54 is that it seeks to address the lack of recycling markets in California. California's solid waste and recycling systems are facing serious challenges, For decades, California sold the majority of its recyclable materials to China. However, over the last several years, China banned the importation of certain recyclables through the adoption of its "National Sword" policy, and in 2018 announced its intent to ban all imports of recyclable materials by 2020. International markets, such as China, have been a critical component to California's recycling infrastructure. The combination of international policies has nearly collapsed the recyclable materials market in California. The recyclable materials once shipped overseas are piling up with nowhere to go. The residents and visitors of Dana Point enjoy and value the beaches and Pacific Ocean for recreational, commercial and educational activities and protecting and improving these natural resources is vital to the local economy. The waterways and open space areas provide a habitat Harboring the Good Life 33282 Golden Lantern, Dana Point, CA 92629-1805 - (949) 248-3500 - FAX (949) 248-9920 - www.danapoint.org 330 to a vast array of wildlife, including fish, whales, sea turtles and birds that depend on a healthy and clean environmental. Plastics disposed of in landfills and in the environment fragment into smaller particles, known as microplastics, concentrating toxic chemicals that have been shown to contaminate our food and drinking water sources, such as bottled water, table salt, fish and soils. These chemicals have been linked to health problems, including cancer and birth defects. This bill helps the City achieve Strategic Goal #4 of the City Strategic Plan, Preserve & Enhance Environmental Health & Sustainability. Cities, like ours, have dedicated significant time and resources to develop and implement their water quality and recycling programs, and want to ensure city recycling programs continue to be successful. This bill is a step in the right direction to reduce the amount of single -use plastics, increase the availability of recyclable materials, and help develop in-state recycling markets. For these reasons, the City of Dana Point supports SB 54. If you should have any questions, please contact Lisa Zawaski, Senior Water Quality Engineer, at 949-248-3584 or Izawaski@danapoint.org. Sincerely, Paul Wyatt Mayor Pro -Tem Chair of the City of Dana Point Ocean Water Quality Subcommittee City of Dana Point CC. Senator Patricia Bates Assemblyman William P. Brough Public Affairs Regional Manager Tony Cardenas, tcardenas@cacities.org League of California Cities (via email: cityletters@cacities.org) 331 CALIFORNIA RESTAURANT ASSOCIATION LOS ANGELES CHAPTER August 9, 2019 Environmental Committee Members City of EI Segundo EI Segundo City Hall 350 Main St, EI Segundo, CA 90245 RE: Possible Single Use Plastic Ban Dear Environmental Committee Members, On behalf of the California Restaurant Association (CRA), I would like to express our concern regarding any possible ordinance that would ban the commercial use of single use plastic food ware in the City of EI Segundo. As an industry that shares the ongoing concern over litter by routinely partnering on litter abatement efforts at the state and local levels, the restaurant community is also concerned about overburdening landfills and has engaged in public policy to encourage recycling and reduce food waste. Comprehensive efforts should be aimed at reducing all composition of material in the landfill and littering in our beaches and waterways. To these goals, CRA has maintained a long-standing history of supporting and advocating for packaging mandates that require all food -packaging materials to be recyclable or compostable. As the Environmental Committee continues to explore alternatives to single use plastic, we ask you to conduct stakeholder outreach with the local restaurant community to better understand their concerns and how such policy will impact them. As a segment of the economy that is characterized by razor thin profit margins of 5-6%, cost must be a consideration as well as the functional value of the products used. The city of EI Segundo has a long history of being business friendly and working with businesses to develop smart and productive policy. For these reasons, we respectfully request that when the city of EI Segundo considers any food packaging policy, it addresses the industry's concerns. We believe this is a tremendous opportunity to better educate the City and the EI Segundo restaurant community on recycling alternatives in lieu of a single use plastic ban. Sincerely, David Juarez Director of Local Government Affairs California Restaurant Association cc: EI Segundo City Council California Restaurant Association P.O. Box 32482, Los Angeles, CA 90032 332 �NIpJ/Ieginlelegi9aNrcra,gw/Ixes,billNau[I,emin,mPbill-Q-(�j ,J�j 6illTett-SB-S+IGliiamia_K ��(u, n Tu[ Yates History -H Malysls Today's law As Amended © Compare Versions Gtah18 f mento Ta Author I SHARE THIS: M A Date Pah HShed:OB/14/2U1909100PM SENATE BILL AMENDED IN ASSEMBLY AUGUST 14, 2019 AMENDED IN ASSEMBLY JULY 10, 2019 AMENDED IN ASSEMBLY JUNE 24, 2019 AMENDED IN SENATE MAY 22, 2019 AMENDED IN SENATE MAY 07, 2019 AMENDED IN SENATE MARCH 25, 2019 AMENDED IN SENATE MARCH U7, 2019 AMENDED IN SENATE FEBRUARY 25, 2019 CALIFORNIA LEGISLATURE— 2019-2D2C REGULAR SESSION NO. 54 Introduced by Senators Allen, Skinner, Stern, and Wiener (Principal coauthors : Assembly Members Friedman and Gonzalez) (Coauthor: Senator Wieckawski) (Coauthors: Assembly Members Boerner Horvath, Carrillo, Kalra, Kamlager-Dove, and McCarty) December ti, 2018 An act to add Chapter 3 (commencing with Section 42040) to Part 3 of Division 30 of the Public Resources Code, relating to solid waste. LEGISLATIVE COUNSEL'S DIGEST Link to Senate Bill No. 54 V n �r m,�nmibleJ�9mawr��a.�a�AarwbalNa.o,�mYnm,nnm- A- G J eiI1T1a Ae-IWCallmm,. K skiolocanlent home eMBBhility EAQ reudhe,k sili-meP Iu m P Quick Search: I If ' LEGISLATIVE INFORMATION 0 Home Bill Information California Low Publications Olhar Reaovmea My Subacriplons My F—tm Nn mfarmatim as ands. Ass Tear PDE I Add To My Favorites I Track Bill I Verslan: ONW19-Amend d Senate v ® ILyI AB -1080 California Circular Economy and Plastic Pollution Reduction Act. (2019-2020) Text Votes History ``&II Analysts Today's Law As Amended 0 Compare versions Stable Comments To Author SHARE THIS: 10G Date Published: 08114/2019 09:00 PM AMENDED IN SENATE AUGUST 14, 2019 AMENDED IN SENATE JULY 11, 2019 AMENDED IN SENATE IULY 05, 2019 AMENDED IN SENATE JUNE 20, 2019 AMENDED IN ASSEMBLY MAY 22,2019 AMENDED IN ASSEMBLY MAY 07, 2019 AMENDED IN ASSEMBLY MARCH 19, 2019 CALIFORNIA LEGISLATURE— 201 8-2020 REGULAR SESSION ASSEMBLY BILL NO. 1080 Introduced by Assembly Members Gonzalez, Calderon, Friedman, and Ting (Principal coauthor: Assembly Member Bloom) (Principal coauthor: Senator Allen) (Coauthors: Assembly Members Boerner Horvath, Carrillo, Kalra, Kamlager-Dove, McCarty, Luz Rivas, and Wicks) Link to Assemblv Bill No. 1080 333