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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 Citv 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 Citv 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: /)�, - A, - ` 9
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
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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
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CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
7/22/19 THROUGH 7/28/19
Date
Pavee
Description
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: 479,962.72
Certified as to the accuracy of the wire transfers by:
?/.2 %119
Deput City Treasurer 1 Date
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Dirac r of Financ Date
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Dirac
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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 7/29/2019 1/1
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CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
7129119 THROUGH 8!4119
Date
Paye
Description
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
929,856.34
DATE OF RATIFICATION:
812119
TOTAL PAYMENTS BY WIRE:
929,856.34
Certified as to the accuracy of the wire transfers by:
Deputy City Treasur/rI Date
D�11ance Date
ISM
ity Manager - ; Date
Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo.
P:SCity TreasurerX ire TransferslCopy of Wire Transfers 10-01-18 to 9-30-19 812/2019 111
24
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25
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
815119 THROUGH 8111119
Date
Paye
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 D1
rec of Fi ance Date
ly Manager 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
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: August 20, 2019
AGENDA HEADING: Consent
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 C�
APPROVED BY: Scott Mitnick, City Manager
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
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
STAT[ Of CALI FORNIA
AUTHENTICATED
Pi�,.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
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: August 20, 2019
AGENDA HEADING: Consent Agenda
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. Example. 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. Example. 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. Examole. 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
i. Thoroughly investigated and considered the scope of services to be
performed;
ii. Carefully considered how the services should be performed; and
iii. 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:
Tvne 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, By:
City Manager Its:
ATTEST:
Tracy Weaver,
City Clerk
APPROVED AS TO FORM:
Mark D. Hensley,
City Attorney
Insurance Reviewed by:
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 THE 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. Finerp-enev SweeoiiiQ. 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. Disnosai of Swesenine 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. Eauinment and Use of FotiiaLl ent. 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. Sweetnin2 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 Sween. 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
$187,683,00
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.
G
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, Fiftv-Two Thousand. Three Hundred Fiftv Dollars and Thirty -Three Cents
07/31/2019
48
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Division o(Joe's Sweeping, Inc.
P
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
11914 Front Street m Norwalk, California 90650 - (562) 860-0604 * Fax (562) 868-5726
www.nes-sweeping.com
52
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 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 �4 �,r 5"P -
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.
Before: After:
54
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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 C# --
REVIEWED BY: Ken Berkman, Public Works Director
APPROVED BY: Scott Mitnick, City Manager j 1j i
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,0 McClain, Planning Manager
REVIEWED BY: Sam Lee, Director of Planning an uJ ding SafelyS
APPROVED BY: Scott Mitnick, City Manager C,�
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.
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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 EI 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
.:
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
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..............................................................................................—._I............................. ............7
4.5 Building Regulations................................................................................................................................. 7
4.6 Subsequent Rules .................................................. I ........ I.., ..... . ................................... __ ..... ....... 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...— .................... 4-- ............................... ........... 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... .................................... ............................... 6..— ........... ................................. ...... . 11
6. City Agreements.............................................................................................................................. 12
6.1 Expedited Processing.. ...................................................................................................................... 12
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0
6.2 Processing Cooperation and Assistance........ .:............. :........ :.......................................................... ....... 12
6.3 Processing During Third Party Litigation..................................................................................:............ 12
6.4 Performance of Director Duties.....................................................----................................ .........13
7. Modification/Suspension .........................................................................................................13
8. Demonstration of Good Faith Compliance.................................................................................::..:13
8.1 Review of Compliance................................................................................................................... 13
8.2 Good Faith Compliance.................................................. ........................................ ........................... ...... 13
8.3 City Report - Information to be Provided to Developer ................................................ .................. 13
8.4 Developer's Report ............................................... ..............
...... .......... ...... ......... .................................. ... 14
8.5 Notice of Non-Compliance; Cure Rights................................................................................................ 14
8.6 Public Notice of Findings....................................................................................................................... 14
8.7 Failure of Periodic Review.................................................................................................................. 14
9. Excusable Delays.............................................................................................................i............... 14
10. Default Provisions..............................................................---......................................................... 14
10.1 Default ...................................... ......................................... .............................------•--............I.................. 14
10.2 Content of Notice of Violation................................................................................................. 15
10.3 Remedies for Breach................................ ......................... .......... ....................... .... .......... I.................... 15
10.4 Resolution of Disputes... .......................•---................................................. ................. ........... 15
10.5 Attorney's Fees and Costs............................................ .............,...................... ...................................... 15
11. Mortgagee Protection............................................... ........................ ............................................... 16
11.1 Mortgage Not Rendered Invalid............................................................................................................ 16
11.2 Request for Notice to Mortgagee.............................................. ........_-............................................. 16
11.3 Mortgagee's Time to Cure...................................... .......»........ ................... ................... ................. ....... 16
11.4 Cure Rights...................................................... _..................................................................._.._.... 16
11.5 Bankruptcy.................................................................................... .......... ................................... ...... 17
11.6 Disaffirmation....................................................................................................................................... 17
12. Estoppel Certificate........................................................................................................................17
13. Administration of Agreement........................................................................................................17
13.1 Appeal of Staff Determinations............................................................................................................ 17
13.2 Operating Memoranda.................................. .................................................................. 17
13.3 Certificate of Performance.................. ...................................................................... » ..............._.... 18
14. Amendment or Termination by Mutual Consent...........................................................................18
15. Indemnification/Defense .......................... • ._...................................................................................18
15.1 Indemnification............................................................................................................................ 18
15.2 Defense of Agreement.......................................................................................................................... 19
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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.. ................ 6 ............................. . ......... 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
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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. 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.
"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
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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.
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"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").
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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 acid 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 Rijahts 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 Proverty. 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.
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4.4 [Reserved]
4.5 Buildina Reaulations. 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. Mitieation 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 Timine of Develooment. 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
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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 Mao(s) and Other Proiect Annrovals. 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 Anorovals.
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 Proiect Annrovals A Minor Amendment
approved by the City shall continue to constitute the Project Approvals as referenced herein.
4.13.2 Modifications Requirine 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
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Approvals and this Agreement have been satisfied.
5. Develover 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 Dblieations. 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
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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. Citv Aereements.
6.1 Exvedited Processine. 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 Processiniz 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 Processine Durine Third Partv Litfization. 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
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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 Citv Report - 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."
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8.4 Develover's Retort. 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 Findine. 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
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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 Attornev's Fees and Costs. 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. Mortgaizee Protection. This Agreement shall not prevent or limit the Developer, in any
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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 Mortgage 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 Request for Notice to Mortgagee. The Mortgagee of any mortgage or deed of bust
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 MorteaRee'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 Riszhts. 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 Bankruptcv. If any Mortgagee is prohibited from commencing or prosecuting
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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. Estonnel 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 Aereement.
13.1 Arweal 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 anerating 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
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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 El 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
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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. Cooneration in the Event ofLeeal Challenize.
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 Challenees Related to the Auvlicability 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.
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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: smitnickeelsegundo.omr
With a Copy to: City of El Segundo
350 Main Street
El Segundo, CA 90245
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Attention: Director of Planning and Building Safety
Phone: 310/524-2346
Fax: 310/322-4167
E-mail: slee(o)elsegundo.ora
With a Copy to: Hensley Law Group
3655 Torrance Boulevard, Suite 300
Torrance, California 90503
Attention: Mark D. Hensley, Esq.
Phone:
Fax:
E-mail: mhenslevO.henslevlawaroun.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 c�r,marventures.com
With a Copy to: Lisa Kranitz
Wallin, Kress, Reisman & Kranitz, LLP
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92
11355 Olympic Boulevard, Suite 300
Los Angeles, CA 90064
Phone: 310/450-9585
Fax: 310/450-0505
E-mail: lisa c�i.wkarklaw-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. Entire Ap-reement. 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. Sunersession of Subseaiuent 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. Relationshir 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 Parry
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 -Party 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 Aereement 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 Citv and Develover. 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 Prenaration. 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. Govemine 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. Countemarts. 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. WeekendlHolidav 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,
25
Richard L. Lundquist, President
.,
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
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97
EXHIBIT B
STIE PLAN FOR BEACH CITIES MEDIA CAMPUS
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EXHIBIT C
SITE PLAN FOR ALTERNATIVE 1
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EXHIBIT D
SITE PLAN FOR ALTERNATIVE 2
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SITE PLAN FOR ALTERNATIVE 3
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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 , 20 (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
Planning and Building Safety Director or
Designee
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103
PROJECT AREA
City of EI Segundo
EXHIBIT C-2 N
Beach Cities Media Campus
2021 Rosecrans Avenue F.
Proposed Zoning Map Amendment s
inn
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 M)
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
Aqreement No.
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF EL SEGUNDO
AND
EL SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES
ASSOCIATION
TERM:
October 1, 2018 to September 30, 2022
TABLE OF CONTENTS
ARTICLE ISECTION NUMBER ...........................................
Article 1 - Recognition
Section 1- Classified Positions Represented by the Association............
Section 2 - City Recognition of Association ..............................................
Section 3 -Term of this Memorandum of Understanding (M.O.U) ..........
Article 2 - Non -Discrimination
Statement of Non -Discrimination ...
Article 3 - Health and Welfare
Agreement No.
................................... PAGE
.......................................... 6
.........................................6
......................................... 6
Section 1 - Health Insurance.........................................................................................
Section 2 - Alternative Medical Plans...........................................................................
Section 3 - Dental Insurance.........................................................................................
Section 4- Optical Insurance....................................................................................
Section 5 - Life Insurance.........................................................................................
Section 6 - Insurance Cap........................................................................................
Section 7- Long Term Disability Insurance (LTD) .....................................................
Section 8 - Workers Compensation...............................................................................
Section 9 - Flexible Spending Account.........................................................................
Section 10 - Bereavement Leave..................................................................................
Section 11 - California State Disability Insurance (SDI) Program ................................
Article 4 - Retirement
Section 1 - PERS Retirement Formulas
Section 2 - Retiree Medical Insurance Contribution......................................................
Section 3 - Deferred Compensation Plan..........................................................................
Section4 - Leave Payoff............................................................................................
Section 5 - Cash Equivalency for Vacation, Sick Leave and Floating Holidays...........
Section 6 - Public Agency Retirement System (PARS) .................................................
Article 5 - Sick Leave
Section 1 - Accrued Sick Leave..........................................................................
Section 2 - Annual Medical Examination........................................................
2
6
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.7
.7
.7
.7
.7
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.7
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1O
Aqreement 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..............................................................................................................11
Section 2 - Accrued Vacation Leave after six months.........................................................................11
Section 3 - Maximum Accumulation of Vacation..................................................................................11
Section 4 - Cash in Lieu of Vacation Time..........................................................................................11
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
Section4 - 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..................................................................................................14
Section6- Bilingual Pay.................................................................................................................14
Section7 - Longevity Pay................................................................................................................14
Section 8 -Certification Pay............................................................................................................14
Section 9 - Salary Table Step Advancement........................................................................................15
Article 12 - Uniforms
List of Job Classifications having uniforms/footwear provided............................................................... 15
41
Agreement No.
Article 13 - Overtime
Section 1 - Fair Labor Standards Act - Overtime Compensation ......................
Section 2 - Definition of Hours Worked for Overtime - Computation purposes
Section 3 - Overtime Authorization....................................................................
Section 4 - Maximum Accumulation of Compensatory Time ............................
Section 5 - Work Time Credit...............................................................................
Article 14 - Grievance Procedure
Section 1 - Definition of Terms...............................................................................
Section2 - Time Limits.....................................................................................................
Section 3 - Procedure................................................................................................
Section 4 - Matters Excluded from the Grievance Procedure ...................................
Section 5 - Conferences............................................................................................
Section 6 - Employee appeals from Disciplinary Actions ..........................................
Article 15 - Layoff
16
16
17
17
17
Section 1 - Grounds for Layoff.............................................................................................................19
Section 2 - Notice to Employees............................................................................................................19
Section3 - At -Will Employees.............................................................................................................
20
Section 4 - Procedures for Layoff........................................................................................................
20
Section5 - Breaking Ties........................................................................................................................20
Section 6 - Reduction to a Vacant Position......................................................................................20
Section7 - Displacement Rights.................................................................................................................20
Section 8 - Salary Placement...............................................................................................................20
Section9 - Reemployment List............................................................................................................21
Section 10 - Rights upon Reemployment............................................................................................
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
Section6 - Standby Duty......................................................................................................................23
Section7 - Jury Duty............................................................................................................................23
Section 8 - Cell Phone Stipend.......................................................................................................24
Section 9 - Assignment of Work Schedule...........................................................................................24
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Aqreement No.
Article 17 - Drug -Free Workplace Statement, Substance Abuse Policy,
and Smoking and Break Policy.....................................................................................24
Article 18 - Personnel File
Section 1 - Personnel File........................................................................................................ 25
Section 2 - Derogatory Material................................................................................................ 25
Section 3 - Positive Material..................................................................................................... 25
Article 19 -Association Deductions................................................................................25
Article 20 - Catastrophic Leave Bank...........................................................................27
SignaturePage............................................................................................................. 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
W
Agreement No.
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF EL SEGUNDO
AND
EL S E G U N D O SUPERVISORY AND PROFESSIONAL EMPLOYEES
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
Supervisory and Professional Employees' Association (herein after referred to as the
'Association'). as the exclusive representative of employees within the bargaining unit consisting of
the classified positions listed in Appendix A - Bargaining Unit Classifications.
SECTION 2. The City recognizes the Association 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 Association as set forth within the Meyers-Milias-Brown Act, Government
Code 3500 et seq.
SECTION 3. The term of this Memorandum of Understanding (MOU) shall commence on October
1, 2018 and end on September 30, 2022.
ARTICLE II- NON-DISCRIMINATION
Neither the City nor the Association shall discriminate against any employee because of race, color,
age, creed, national origin, sex, handicap, medical condition, marital status, or Association
activities in any matter.
ARTICLE III- HEALTH AND WELFARE
SECTION 1. Health fsurance - 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. Citv Medical Contribution: For 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 below toward an
employee's and his/her eligible dependent(s)' medical costs. This maximum contribution below
includes the minimum PEMHCA contribution:
i_ Effective on the first day of the second month following City Council adoption of the MOU,
City contribution of $1,500 per member per month for medical -health insurance coverage;
ii. Effective January 1, 2020, City contribution of $1,550 per member per month for medical -
health insurance coverage;
iii. Effective January 1, 2021, City contribution of $1,600 per member per month for medical -
health insurance coverage;
iv. Effective January 1, 2022, City contribution of $1,650 per member per month for medical -
health insurance coverage
10
Aqreement No.
Any employee premium amounts above the City contribution amount will be paid by
the employee through pre-tax payroll deduction.
Effective the first day of the second month following City Council Adoption of the MOU, the cash -
out option is discontinued.
SECTION 2. Alternative Medical Plans - During the term of this agreement, the City may reopen
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 without agreement of the parties.
SECTION 3. Dental Insurance - The City provides fully paid dental insurance for the employee and
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 Car) - 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. Lonq Term Disabilitv Insurance (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 Spendinq 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
bereavement leave per incident shall be increased up to five (5) working days commensurate
with the employees normally assigned work schedule per incident in those circumstances
where travel to a funeral or other memorial proceeding is 500 or more miles one way 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 Disabilitv Insurance (SDI) Proqram - The City has taken all the
7
Agreement No.
necessary administrative steps to provide Association employees with State Disability
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 Association 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 not a "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 AB340.
(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 (AB340) agree to pay the statutorily required employee contribution equal to
seven percent (7%) (pre-tax) of compensation.
i. Effective on the first day of the first full pay -period in September 2021, miscellaneous
employees defined as "classic" members of the Association 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 eight percent (8%) (pre-tax) of compensation.
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 Association will be eligible
to receive the City -provided retiree medical insurance contribution towards the member's and his/her
eligible dependent(s)' medical costs, which is equal to that amount outlined in Article III, Section 1,
sub -section A (i, ii, iii, iv), available to Association members currently employed by the City after a
minimum of five (5) full years of service with the City of EI Segundo. The City's maximum per month
contribution outlined in Article III, Section 1, sub -section A (i, ii, iii, iv) includes the PEMHCA minimum
contribution required under Government Code section 22892. As required by Government Code
section 22892(b), the City's contribution will be an equal amount for both employees and retirees.
Any Retiree premium amounts above the City's contribution amount will be paid by the retiree through
their CaIPERS annuity.
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Aqreement No.
SECTION 3. Deferred Compensation 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 Pavoff - 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 for vacation, sick leave and floating holidays accrued during the employee's final year of
employment. Said members have also been eligible to receive a cash distribution equal to the monthly
differential between $500.00 and the monthly amount designated by each member for 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 partthat 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 of the 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,
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 Aaencv Retirement Svstem (PARS) - Effective October 1, 2008, the City will
contract with the Public Agency Retirement System (PARS) to provide an additional retirement benefit
for eligible Association 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 or
disability 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
9
Agreement No.
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
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 1Q�hof 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 s a a e for Familv C a re - Affected e m p I o ye e s a re eligible to utilize
a maximum of forty-eight (48) hours of sick leave per calendar year in order that care may be provided
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 Leave - 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.
10
Aqreement 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 level 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:
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 11 th 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.
Current/non-probationary employees
Effective 2019, employees who have passed their probationary period as of August 20, 2019,
vacation accrual rates shall be determined by combining total years of City service and prior PERS service
with another agency.
Probationary employees
Employees —who are on probation, whether newly hired or promotional, shall have their vacation accrual
rates determined by combining total years of City service and prior PERS service with another agency in
the pay period following the employees passage of probation.
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
lieu of accrued vacation leave up to a maximum of 100% the annual accrual to which they are entitled
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 exercise this option twice
per calendar year.
SECTION 5. Employees shall receive payment for one hundred percent (100%) of their accumulated
vacation leave upon service retirement, disability retirement, death, resignation, or termination.
11
Agreement No.
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 ist
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 31 st
Holidays will be paid based on the employee's assigned daily work schedule. For example,
employees assigned to a 4/10 schedule will have holidays paid in ten (10) hour increments.
Employees assigned to a 9180 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 off), 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.
ARTICLE IX -PROFESSIONAL DEVELOPMENT
SECTION 1. College course reimbursement
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Aqreement No.
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.
Employees who participate in the program must sign the following agreement:
Educational Reimbursement - "I certify that I successfully completed the course(s),
receiving at least a grade of'C' or better." (Attach copy of grade verification) Further, I agree
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 of the
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%
8
40%
3
90%
9
30%
4
80%
10
20%
5
70%
11
10%
6
60%
12
0%
Probationary employees are not eligible to participate in this program.
SECTION 2. Professional memberships, conferences, meetings, and workshops
With the approval of the department head and/or City Manager, the City also pays the cost of an
employee's professional membership fees and conference, meeting and workshop attendance.
ARTICLE X - COMPUTER LOAN PROGRAM
Effective upon adoption of this MOU by the City Council, the Computer Loan Program will be eliminated,
and no new computer loans will be granted by the City.
However, for current employees with outstanding Computer Loans, the City and employee shall
continue to recognize existing loan and repayment obligations under the same terms and conditions.
The following language is retained to reflect the prior understanding of the parties and for historical
context: "Employees are eligible to receive an interest-free 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 loan 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 requirements."
ARTICLE XI -SALARY
SECTION 1. Salary Adiustments -
The City shall provide the following salary increases to employees, per Appendix G:
• Effective upon the first day of the first payroll period after City Council ratification of this MOU,
13
Agreement No.
increase base salary by 4%
• Effective Pay Period that includes October 1, 2019: increase base salary by 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 by Two Percent (2%)
SECTION 2. Accelerated Salary Step 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%
in a 12 month period upon recommendation and approval bythe department head and 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.
SECTION 4. Use of Personal Vehicle on Official City Business - Employees authorized to use a
personal vehicle while on official City business will receive mileage reimbursement at the rate
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 Pav - 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
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 Pav - 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: Job Classifications Occupying
Job Classifications Occupying Salary Grades 40S - 498: Salary Grades 50S- 53S:
14
$159.02/month
$203.56/month
$224.69/month
15
Aqreement No.
Agreement No.
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%) of the base salary E Step of the salary grade.
SECTION 7. Lonqevitv Pav - An employee who has completed twenty (20) years of continuous
service with the City of EI Segundo shall be entitled to longevity pay asshown below
Longevity 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 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 Pav - 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.
Certification Pay
Job Classifications Occupying Salary Grades 30S - 39S:
Job Classifications Occupying Salary Grades 40S - 49S:
Job Classifications Occupying Salary Grades 50S - 53S:
16
$318.04/month
$407.11 /month
$449.38/month
Agreement No.
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 her first 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 year's 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 1/11
Emergency Management Coordinator
Environmental Safety Manager
Equipment Maintenance Supervisor
Facilities Maintenance Supervisor
Fire Marshal
Park Maintenance Supervisor
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 of the City shall not be
subject to administrative or judicial appeal. Uniform cleaning services shall be provided by the City.
In addition, an Association member occupying the job classifications of Assistant Fire Marshal,
Environmental Safety Manager, Principal Environmental Specialist, Fire Marshal, Crime Prevention
Analyst 1/11, Emergency Management Coordinator, Police Records Supervisor and Senior Building
Inspector shall receive a uniform cleaning allowance of $400 per year.
17
ARTICLE XIII -OVERTIME
Agreement No.
SECTION 1. Fair labor Standards Act —Overtime Compensation
{a) Pursuant to the Fair Labor Standards Act, employees occupying the classifications and
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 hoursworked for overtime -Computation purposes
The City, for purposes of calculating overtime pay, will include holiday leave as time worked.
The following shall not be considered as time worked for purposes of computing entitlement to
overtime compensation:
Meal breaks;
2. Utilization of paid or non -paid leaves of absence (including but not
limited to vacation leave, sick leave, leave without pay, compensatory
time off);
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.).
All off-duty travel;
6. All time for personal preparation and clean up;
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.
ARTICLE XIV - GRIEVANCE Agreement No.
PROCEDURE SECTION I. DEFINITION OF TERMS
A. Grievance -A grievance is a violation, misinterpretation or misapplication of a specific
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. Dater - A day is a calendar day.
D. Immediate Supervisor - The first level supervisor of the grievant.
SECTION 2. TIME LIMITS
A Compliance and Flexibilitv - 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 be deemed
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 riseto 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 Filing 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 misapj4ication.
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.
The remedy requested.
Agreement No.
C. Level III - If the grievance is not resolved by the immediate supervisor the grievant
may present the grievance inwriting to the department head within five (5) days. The
department head will respond inwriting within ten (10) days.
D. Level IV — See Article XXI — binding arbitration.
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.
B. The procedure is not intended to be used to challenge the content of employee
evaluations or performance reviews.
18
C. The procedure is not intended to be used to challenge the merits of a reclassification,
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 ACTIONS
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 of ten (10) days following written notification in which to file an appeal or
answer the 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 of the 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.
Procedures for all hearings to be conducted by the Count shall be in accordance with
the Rules of the Los Angeles County Civil Service Commission.
G. Alternatively, employees may appeal discipline to binding arbitration pursuant to
Article XXI.
Agreement No.
ARTICLE XV - LAYOFF
SECTION 1. Grounds for Lavoff - Whenever, in the judgment of the City Council, it becomes
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 Emplovees -An employee filling a full-time position shall be given fourteen
(14) Calendar day's prior notice of lay off. 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 f r L a v o f f - 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 of the average of the overall evaluation ratings for the last
three (3) years in a classification, provided the last rating had been filed at least thirty (30) days prior
to the date of the layoff notice. Retention points are as follows:
1.
"Unsatisfactory" rating
2.
"Improvement needed" rating
3.
"Satisfactory" rating
4.
"Exceeds expectations" rating
5.
"Outstanding" rating
21
0 retention points.
6 retention points.
12 retention points.
18 retention points.
24 retention points.
Agreement No.
Agreement No.
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, if the employee is qualified by education and/or experience for such position. If there 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 Riahts - 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 insuch 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
appointment. An employee accepting such appointment shall be placed on the step for the lower
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.
SECTION 9. Reemplovment List - The names of permanent employees who have been laid off
under this 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 or a 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 list without right of appeal. Laid -off employees do not
earn seniority credit or benefits while on the re-employment list.
SECTION 10. Riahts upon Reemplovment - 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 to join the South Bay Credit Union.
SECTION 2. Temporary Assianment to Hiaher Classification - 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
21
Agreement No.
affected employees are prepared to reconvene performance of their duties precisely at the 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.
Agreement No.
SECTION 4. Request for Reclassification Review
A. Basis for reauest - A bargaining unit employee or Association 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. Processina of request - The request for reclassification review must be submitted by the
employee or the Association 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 staff will have the responsibility to conduct the reclassification review
process. However, if the Association 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. Components of reclassification review-
1.
eview-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.
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 of the 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 Association 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 of the position.
E. Action by the Citv 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. Challenae to decision on reclassification request - The Association 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 of the 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 Association and the City.
The parties
23
Agreement No.
agree to accept the conclusions reached by the neutral entity. The cost of the consultant's services
will be shared equally by the Association and the City.
SECTION 5. Senioritv - 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 time worked, 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. Standbv Dutv -.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 assigned 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 or two (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, in writing, the provision of the normal standby period
compensation.
SECTION 7. Jury Dutv - Employees shall be entitled to a leave of absence forjury duty subject to
compliance with all of the following conditions:
A The employee must providewritten notice ofthe expected jury duty to his or hersupervisor as
soon as possible, but in no case later than 14calendar days before the beginning of the jury
duty.
23
Agreement No.
B. During the first two weeks of jury 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 phones to perform anywork on behalf of the 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 bythe City on the same
terms and conditions as employees who are issued City cell phones.
SECTION 9. Assianment of Work Schedule
Effective the first day of the first pay period in January 2018, employees of this bargaining unit shall
operate on a 9,80 work schedule. Employees shall typically be assigned a Monday through Friday
9/80 schedule. The City and SPEA membership agree that the membership may be split into "A", "B",
and "C" shift by their respective Department Heads, such that "A" and "B" shift work opposite Fridays
and have opposite Fridays off, whereas "C" shift works Monday through Friday 5/40 schedule.
Due to operational needs, the City may assign employees 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 schedule (5/40 or 4/10) without mutual written
agreement by (1) the employee, (2) his or her Department Head, and (3) the SPEA Association
Board.
SECTION 10. New Hire Notification
The City shall notify the Association of all new hires in positions in this bargaining unit (see Appendix A)
within 10 working 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 of this MOU.
Agreement No.
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/or Association 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 employees
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 designated party.
The Association agrees to defend, indemnify and hold harmless the City from any claim, suit or liability
of any nature arising from the operation of this provision, including, but not limited to: (a) a challenge
to the validity of this Section; or (b) any action of the Association taken pursuant to, or in violation of,
this Section. The City will give the Association prompt written notice of any claim, suit or liability which
it contends is subject to this provision. It is also agreed that neither any employee nor the Association
shall have any claim for error against the City for any deductions made or not made, as the case may
be.
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:
I. 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.
25
B. Employees may transfer sick leave, vacation or compe s orympeave ?6 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.
ARTICLE XXI — BINDING ARBITRATION
A. Civil Claims:
Both the City and individual employees covered by this Memorandum of Understanding
agree that the claims described in this Article shall be submitted to and determined
exclusively by binding arbitration under the Federal Arbitration Act, in conformity with
the procedures of the California Arbitration Act ("CAA") (Cal. Code Civ. Proc. Sec 1280
et. seq, including section 1283.05 and all of the CAA's other mandatory and permissive
rights to discovery). Nothing in this Memorandum of Understanding shall prevent either
party from obtaining provisional remedies to the extent permitted by Code of Civil
Procedure Section 1281.8 either before the commencement of or during the arbitration
process. All rules of pleading, (including the right of demurrer), all rules and judgment
under Code of Civil Procedure Section 631.8 shall apply and be observed. Resolution
of the dispute shall be based solely upon the law governing the claims and defenses
pleaded.
1. The civil claims which are subject to final and binding arbitration shall include,
but not be limited to, any and all employment-related claims or controversies,
such breach of employment agreement, breach of the covenant of good faith and
fair dealing, negligent supervision or hiring, wrongful discharge in violation of
public policy, unpaid wages of overtime under the state and federal wage payment
laws, breach of privacy claims, intentional or negligent infliction of emotional
distress claims, fraud, defamation, and divulgence of trade secrets. This also
specifically includes claims that could be asserted under all state and federal anti-
discrimination laws, including but not limited to the California Fair Employment
and Housing Act, Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act, the Americans with Disabilities Act, and the
Family and Medical Leave Act, and claims for discrimination and harassment in
employment on the basis of race, age, sex, religion, national origin, alienage,
religion, marital status, sexual orientation, disability, political activity, or any
other statutorily -protected basis. It shall also include any and all claims an
employee may have under the Fair Labor Standards Act, the California Labor
Agreement No.
Code, and the Industrial Welfare Commission Wage Orders, as well as any other
state and federal statutes. This Article XXI is further intended to apply to any
claim Employee(s) may have against the City and/or any of its directors,
employees, or agents, and to any and all past and future employment relationships
Employee may have with the City regardless of job position or title. City shall
also arbitrate all claims it has against the employee under the same rules and
regulations set forth herein.
2. Notwithstanding the provisions of this Article, employees covered by this
Memorandum of Understanding may elect to file a claim for workers'
compensation and unemployment insurance benefits with the appropriate state
agencies, and administrative charges with the Equal Employment Opportunity
Commission, California Department of Fair Employment and Housing, California
Department of Labor Standards Enforcement, U.S. Department of Labor and any
similar state or federal agency. Unless otherwise required by applicable law, all
other employment-related claims shall be resolved by final and binding arbitration
and not by a jury in a court of law.
3. To the fullest extent permitted by law, employees covered by this Memorandum
of Understanding agree that they shall not join or consolidate claims submitted
for arbitration pursuant to this Article with those of any other persons, and that no
form of class, collective, or representative action shall be maintained without the
mutual consent of the parties. Any dispute over the validity, effect, or
enforceability of the provisions of this paragraph, including whether the
arbitration may proceed as class, collective, or representative action, shall be for
a court of law and not an arbitrator to decide.
The City shall bear the costs of any arbitration conducted pursuant to this Article,
including the compensation of the Arbitrator, all 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, and the employee.
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 be
mutually selected by the parties. The Arbitrator shall have the power to award all
legal relief available in a court of law, including any and all damages that may be
available for any of the claims asserted. In addition, each of the parties shall retain
all defenses that they would have in a judicial proceeding, including defenses
based on the expiration of the statute of limitations and that the damages being
sought are not authorized or are excessive.
B. Appeal of Discipline
The Parties understand that employees covered by this Memorandum of Understanding are
entitled to disciplinary appeal procedures under the City's Personnel Merit System
Administrative Code. Under Administrative Code Section 1-6-8, employees have the right
27
to have the Los Angeles County Civil Service Commission hear app-ealsmi-rom dismissal,
demotion, and suspensions for a period of six (6) days or longer. The Parties agree that an
employee covered by this Memorandum of Understanding may opt to have these
disciplinary actions be submitted to binding and final arbitration.
1. The arbitration shall be held before a single arbitrator, who shall be an experienced
labor and employment law arbitrator. The parties shall select an arbitrator from a
list of seven arbitrators provided by the State Mediation and Conciliation Service.
If the parties are unable to reach an agreement in the selection of a hearing officer,
each shall strike names from the list until a final name is selected as the Arbitrator.
2. The City shall pay the costs of the arbitrator and court reporter fees and transcript,
if a court reporter is requested by the parties. The parties shall be responsible for
their own attorneys' fees and costs incurred in presenting their case to the
Arbitrator.
3. Any dispute over the validity, effect, or enforceability of the provisions of this
Article, shall be for a court of law and not an arbitrator to decide.
4. Under this Section B, the Arbitrator's authority will be limited to determining:
Whether the City has satisfied the seven tests of just cause; and, if not, what is the
appropriate remedy. 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, the Association and the employee. The Arbitrator
may not increase the level of discipline.
5. At least ten business days before the scheduled arbitration, the parties shall
exchange the following information: (i) a list of all witnesses each party intends
to call during its case -in -chief; and (ii) copies of all documents each party intends
to introduce during its case -in -chief.
C. Contract Interpretation Disputes
The Parties agree that any grievance filed under the Grievance Procedure, Article XIV, of
this Memorandum of Understanding shall be subject to final and binding arbitration. The
Association must file a written request for final and binding arbitration within ten (10) days
of receipt of the City's response at Level III.
The arbitration shall be held before a single arbitrator, who shall be an experienced
labor and employment law arbitrator. The parties shall select an arbitrator from a
list of seven arbitrators provided by the State Mediation and Conciliation Service.
If the parties are unable to reach an agreement in the selection of a hearing officer,
each shall strike names from the list until a final name is selected as the Arbitrator.
2. The City shall pay the costs of the arbitrator and court reporter fees and transcript,
if a court reporter is requested by the parties. The parties shall be responsible for
their own attorneys' fees and costs incurred in presenting their case to the
Arbitrator.
3. Any dispute over the validity, effect, or enforceability of the provisions of this
Article C, shall be for a court of law and not an arbitrator to decide.
Agreement No.
4. The Arbitrator's authority will be limited to interpreting the provisions of the
Memorandum of Understanding and the Arbitrator has no authority to add to,
subtract from, or modify the Memorandum of Understanding in any way. The
Arbitrator shall have the authority to determine questions of arbitrability of contract
interpretation disputes. 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, the Association and the employee.
5. At least ten business days before the scheduled arbitration, the parties shall
exchange the following information: (i) a list of all witnesses each party intends
to call during its case -in -chief; and (ii) copies of all documents each party intends
to introduce during its case -in -chief.
D. This Article XXI is entered into under the California Arbitration Act and the Meyers-
Milias-Brown Act, and shall be interpreted and construed in accordance with the law and
procedures developed under those respective statutes.
ARTICLE XXII — Reopener:
A. Parties agree to reopener regarding amendments to the Personnel Merit System, modification
of Municipal Code that covers Personnel Merit System;
B. Parties agree to reopener regarding employee evaluation process, procedure, forms, and
evaluation criteria;
C. Parties agree that any and all changes proposed pursuant to this reopener provision can only be
implemented by mutual agreement of the parties.
For the Association: For the City of EI 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. Campbell, Human Resources Analyst
29
Agreement No.
Date: Date:
CITY OF EL SEGUNDO
SALRY TABLES
SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION (,ATTACHMENT B - Exhibit I A
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
DEPUTY CITY TREASURER MONTHLY
BASE $5,971.13 $6,269.69 56,583.17 56,912.33 $7,257.94
32S LIBRARIAN I
STEP
STEP A STEP B
STEP C
STEP D
STEP E
MONTHLY
BASE
.$6,216.96 $6,527.81
$6,854.20
$7,196.91
57556.76
33S ADMINISTRATIVE ANALYST
STEP
STEP A STEP B
STEP C
STEP D
STEP E
PROPERTY OWNER COORDINATOR
MONTHLY
BASE
$6,344.51 S6,661.74
$6.994.82
$7,344.56
$7,711.79
RECREATION SUPERVISOR
WELLNESS COORDINATOR
34S CRIME PREVENTION ANALYST II STEP STEP A STEP B STEP C STEP D STEP E
MON
BASE $6,475.251$6,799.01 1$7,138.96 1$7,495.91 1$7,870.70
37S EQUIPMENT MAINT. SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
PARK MAINTENANCE SUPERVISOR BASE $6,887.38 $7,231.75 $7,593.34 $7,973.00 $8,371.65
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
G.I.S. ANALYST BASE $7,031.671S7,383.25 1$7,752.41 1$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
ECONOMIC DEV. ANALYST BASE $7,331.19 $7,697.75 1$8,082.64 $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
FACILITIES MAINT. SUPERVISOR NASETHLY $7,645.86 $8,028.15 1$8,429.56 1$8,851.04 $9,293.59
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 $7,976.471$8,375.29 1$8,794.06 1$9,233.76 1$9,695.45
45S ASSISTANT FIRE MARSHALL STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
EMERGENCY MGMT. COORDINATOR BASE $8,148.00 $8,555.41 $8,983.18 $9,432.33 $9.,903.95
PRINCIPAL ENVIRON. SPECIALIST
46S SENIOR ENGINEER ASSOCIATE ISTEP 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
49S
52S
535
FIRE MARSHAL
PRINCIPAL PLANNER
SENIOR PLAN CHECK ENGINEER
ENVIRONMENTAL SAFTEY MGR.
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
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
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
STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
BASE $9,598.241$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 IATTACHMENT 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
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
I STEP STEP A STEP B
STEP C
STEP D
STEP E
PROPERTY OWNER COORDINATOR
MONTHLY
BASE SALARY $6,471.40 $6,794.97
$7,134.72
$7,491.45
$7,866.03
RECREATION SUPERVISOR
WELLNESS COORDINATOR
34S CRIME PREVENTION ANALYST II ISTEP STEP A STEP B STEP C STEP D STEP E
1MONTHLY
6 SESALARY $6,604.751$6,934.99 1$7,281.74 $7,645.83 $8,028.12
37S EQUIPMENT MAINT. SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
PARK MAINTENANCE SUPERVISOR BSE 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 k STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
G.I.S. ANALYST 1BASESALARY S7,172.301$7,530.92 157,907.46 1$8,302.84 1$8,717.98
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 $7,323.18 $7,689.34 $8,073.81 $8,477.50 $8,901.37
40S ACCOUNTING SUPERVISOR f STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
ECONOMIC DEV. ANALYST �BASESALARY $7,477.81 $7,851.70 1$8,244.29 1$8,656.50 $9,089.33
POLICE RECORDS SUPERVISOR
SENIOR ADMINISTRATIVE ANALYST
42S ASSOCIATE ENGINEER STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
FACILITIES MAINT. SUPERVISOR IBASESALARY $7,798.78 $8,188.72 $8,598.15 $9,028.06 1$9,479.46
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
BASESALARY $8,136.001$8,542.80 $8,969.94 1$9,418.43 1$9,889.35
45S ASSISTANT FIRE MARSHALL I STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
EMERGENCY MGMT. COORDINATOR BASE SALARY $8,310.96 $8,726.51 $9,162.84 $9,620.98 $10,102.03
PRINCIPAL ENVIRON. SPECIALIST
46S SENIOR ENGINEER ASSOCIATE ISTEP 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
49S FIRE MARSHAL
52S PRINCIPAL PLANNER
SENIOR PLAN CHECK ENGINEER
53S ENVIRONMENTAL SAFTEY MGR.
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
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
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
STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
B SESALARY $9,790.211$10,279.721$10,793.70 $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
DEPUTY CITY TREASURER BASE SALARY $6,212.36 $6,522.98 $6,849.13 $7,191.59 $7,551.17
325 LIBRARIAN I
STEP STEP A
STEP B
STEP C
STEP D
STEP E
MONTHLY
BASE SALARY $6.468.13
56,791.54
$7,131.11
$7,487.67
$7,862.05
33S ADMINISTRATIVE ANALYST
STEP STEP A
STEP B
STEP C
STEP D
STEP E
PROPERTY OWNER COORDINATOR
MONTHLY
BASE SALARY $6,600.83
S6,930.87
$7,277.41
$7,641.28
$8,023.35
RECREATION SUPERVISOR
WELLNESS COORDINATOR
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$8,188.68
37S EQUIPMENT MAINT. SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
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 ISTEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
G.I.S. ANALYST 1BASESALARY $7,315.75 1$7,681.54 1$8,065.61 158.468.89 1$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 $7,843.13 $8,235.28 $8,647.05 $9,079.40
40S ACCOUNTING SUPERVISOR ISTEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
ECONOMIC DEV. ANALYST �BASESALARY $7,627.37 $8,008.74 $8,409.17 1$8,829.63 1$9,271.11
POLICE RECORDS SUPERVISOR
SENIOR ADMINISTRATIVE ANALYST
42S ASSOCIATE ENGINEER ISTEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
FACILITIES MAINT. SUPERVISOR 1BASESALARY $7,954.75 1$8,352.49 1$8,770.12 1$9,208.62 1$9,669.05
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 $8,124.61 $8,530.84 $8,957.38 $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
45S ASSISTANT FIRE MARSHALL ISTEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
EMERGENCY MGMT. COORDINATOR BASE SALARY $8,477.18 $8,901.04 $9,346.10 $9,813.40 $10,304.07
PRINCIPAL ENVIRON. SPECIALIST
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
495 FIRE MARSHAL
52S PRINCIPAL PLANNER
SENIOR PLAN CHECK ENGINEER
53S ENVIRONMENTAL SAFTEY MGR.
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
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
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
STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY 1$10,485.31
BASE SALARY $9,986.01 $ 1$11,560.06 $12,138.06
2% effective October 1, 2020 116
CITY OF EL SEGUNDO
SALRY TABLES t
SUPERVISORY PROFESSIONAL EMPLOYEE ASSOCIATION ATTACHMENT B - Exhibit I D 1
2% effective October 1, 2021
30S CRIME PREVENTION ANALYST I STEP STEP A STEP B STEP C STEP D STEP E
DEPUTY CITY TREASURER MONTHLY
BASE SALARY 56.336.61 $6,653.44 $6,986.11 $7,335.42 $7,702.19
32S LIBRARIAN I
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
ADMINISTRATIVE ANALYST
(
33S
STEP STEP A
STEP B
STEP C
STEP D
STEP E
PROPERTY OWNER COORDINATOR
MONTHLY
BASE SALARY $6,732.84
$7,069.49
$7,422.96
$7,794.11
$8,183.81
RECREATION SUPERVISOR
WELLNESS COORDINATOR
34S CRIME PREVENTION ANALYST If CSTEP STEP A STEP B STEP C STEP D STEP E
�MONTHLY
BASESALARY $6,871.58 1$7,215.16 1$7,S7S.92 1$7,954.72 1$8,352.45
375 EQUIPMENT MAINT. SUPERVISOR STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
PARK MAINTENANCE SUPERVISOR BASE SALARY $7,308.94 $7,674.39 $8,058.11 $8,461.01 $8,884.06
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
G.I.S. ANALYST BASE SALARY $7,462.06 1$7,835.17 $8,226.92 1$8,638.27 1$9,070.18
PROGRAM COORDINATOR
RSI DESIGN COORDINATOR
2% effective October 1, 2021
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
ECONOMIC DEV. ANALYST
POLICE RECORDS SUPERVISOR
SENIOR ADMINISTRATIVE ANALYST
42S ASSOCIATE ENGINEER
FACILITIES MAINT. SUPERVISOR
PLAN CHECK ENGINEER
PURCHASING AGENT
RSI SUPERVISOR
43S INFORMATION SYSTEMS SPECIALIST
44S SENIOR BUILDING INSPECTOR
STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
BASE SALARY $7,779.92 $8,168.91 $8,577.36 1$9,006.23 $9,456.54
STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
B SE SA ARY $8,113.85 $8,519.54 $8,945.52 $9,392.80 $9,862.43
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
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
1
45S ASSISTANT FIRE MARSHALL ISTEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
EMERGENCY MGMT. COORDINATOR 1BASESALARY $8,646.73 $9,079.06 $9,533.02 $10,009.67 $10,510.15
PRINCIPAL ENVIRON. SPECIALIST
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 ISTEP 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 ISTEP 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 STEP STEP A STEP B STEP C STEP D STEP E
MONTHLY
SENIOR PLAN CHECK ENGINEER 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 1$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 1
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF EL SEGUNDO
AND
CALIFORNIA FORMA T -F M LIG, PROFESSIONAL
A Nl3-I�IC�l r e�=rT? o i�v � n:r art A i�nr�n �.n�,T
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 UpieRAssociation ....................................................I.........16
Section 3 -Term of this Memorandum of Understanding(M.O.U) .. ...... ..............................................6
Article 2 - Non -Discrimination
Statementof Non-Discrimination..........................................................................................................6'
Article 3 - Health and Welfare
Section1 -Health Insurance...........................................:......................................................................8.
Section 2 - Alternative Medical Plans . ......................... :.::.._:.............
Section 3 - 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
Section10- 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 ......................... »..._.:..:............. I ................ .........., ..................... 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..........................................................................................................10
Section 2 - Annual Medical Examination.........................................................................................10
124
Section 3 - Sick Leave Usage for Family Care
Section 4 - Catastrophic Illness Leave...........
Article 6 - Employee Assistance Program (EAP) ..
Article 7 - Vacation
Section 1- Accrual Schedule . .............. :...................... ___
Section 2 - Accrued Vacation Leave after six months ...........
Section 3 - Maximum Accumulation of Vacation. ...............
...
Section 4 - Cash in Lieu of Vacation Time ..... ....................
Section 5 -Leave Payment Upon Separation ................
Article 8 - Holidays
,Agreement No. I Formatted: Highlight
..._..... 10
10
...... 11
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 .... .................... . .......... ............. ................ I ..,......:.. 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
Section 8 -Certification Pay....................................................................................................... 14
Section 9 - Salary Table Step Advancement.......................................................................................15
Article 12 - Uniforms
List of Job Classifications having uniforms/footwear provided ......... ............... —.................. »...:.:::::_;_„ to
3
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Agreement No.
Article 13 - Overtime
Section 1'Fair Labor Standards Act ' Overtime Compensation ........................... -.'............ ........ m
Section u Definition of Hours Worked for Overtime ' Computation purposes ....... -.............. ........ 10
SectionOvertime Authorization ......... .............. .......... ................................................................... 1r
Section 4 Maximum Accumulation mCompensatory Time --... ....................... ........... ......... n
Article ^*' Grievance Procedure
SectionDefinition mranno........... ...................... ...................................... ................... ... 1r
Section uTime ...................... 17
Sectionx'Procedure ...... ...................................... ......... ....... —....................... .......... m
Section 4 - Matters Excluded oommeonov ncmpmcouure----_-''--_'.-._~--m
Section n'Conferences ................... ............. '___ ......... ................................... ---_......... 19
Article 15 - Layoff
Section Grounds for Layoff ..... -._
....................... .... .... ........ -..... -............... '19
Section wonoetosmpmveea----'_--
---- '' 19
Section u'At-Will Employees ......... ....................
--........ ...... ........ —.............. ................... ..... uo
Section Procedures for Lovoff...............................................................
.................................. zv
Section Breaking Ties ......................
.................. --......... --...... ......... zv
Section o'Reduction maVacant poemon—._-_'---_-------'_---'._-,uv
Section Displacement Rights .......................
.................................... .....................................
SectionSalary Placement, --......... '-
................. ___ ...... ....... __ ... .............................. ---'zv
Section Reemployment List ----------
............................
Article 16 - Miscellaneous
SectionCredit unwn-......... ---------....... ........................ ...... 2m
Section u'Temporary Assignment to Higher Classification .......... ................ ......... _...... ................. z1
Section o'Rest Periods ............ -~............. .m
Section Request for Reclassification Review ----'�_'_-----_--'-_'�---'~zz
Sectionx'uenwmv.......................... ................... ....................................................... ........... zv
Section Standby Duty '............. .......... -...... ......................................... uo
aoummr'Juryouty-- ---_.--...'_------....................... uo
oectmno'Cellphonenpond- 24
126
[agreement No.
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
SignaturePage ...... .......... .............. : ........................ ...... ..:...... ,................... ............. .... 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 fatfiNv Fins Fl;vj Qir� l±3iraw:/ 19'�i�f�r tGs6attea ei`
this agreement
5
Formatted: Highlight
Formatted: Highlight
127
Agreement No.
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF EL SEGUNDO
AND
"�' (177PhIIA-T-EAN}S--rco��c •oi gLAG. PROF€SSIGNAL
EL SEGUNDOANDMEDIrAr EMPLOYEES
UNIGni LOGAi 911
SUPERVISORYAND PROFESSIONAL EMPLOYEES'_RARGAIISIING_ 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 Seaundo
Suoervisory and Professional Empinvee=ss ,A•�sr+r atlnn Sali4enai�itafa E'ikGc;
Fffllessiflrtal artA aNediEal E+r3�ieyees 1dn' 911 P-14%6110-
TeamGISF (h re4na"er,+eferred•loas4he 'Unia n ifter F3ierred to as the 'Asoociabon 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 Waiea 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 U4*AAssociatlon 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 I Win Association shall discriminate against any employee because of race,
color, age, creed, national origin, sex, handicap, medical condition, marital status, or
uaiorrAssociation activities in any matter-
[ARTICLE III- HEALTH AND WELFARE
Formatted Highlight
SECTION 1 Health t'surance - 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. Cltv Medical Contribution: E°'a^sU•: r: 1sk*uafyL— ' °. ^ 44Eor the term of this Agreement, the
Formatted: Numbered + Level: 1 + Numbering Style:
City will pay the Public Employees' Medical and Hospital Care Act ("PEMHCA") minimum
A, B, C, ... + Start at: l + Alignment: Left + Aligned at:
contribution required under Government Code section 22892 The City will contribute as outlined
0.08" + Indent at: 0.33"
below --- '� .er+tp toward an employee's and his/her eligible dependent(s)' medical
—
costs. This maximum contribution below includes the minimum PEMHCA contribution:
Formatted: Indent: Left: 0.33", First line: 0"
� Formatted: Numbered + Level: 1 + Numbering Style: i,
1- Effective on the First day of the second month followinv City Council adoption of She MOU.
ii, iii, -+ Start at: l + Alignment: Left + Aligned at:
1
the City I contribution or s1.5oo oer member per month for medical -health insurance.
0.33" +Indent at: 0.83"
coverage .........................
ii_ Effective danuary 1. 2020. City contribution of tf $1 550 ger member per month for
Formatted: No underline, Underline color. Auto
medical -health insurance coveraoe;..•••••••-•--------------------- •............................
.......• i Formatted: No underline, Underline color. Auto
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128
(agreement No.
Formatted: Highlight
iii. Effective January 1.2021. City contribution of 51,600 per member oer month for medical-
—health insurance coverage:
iv. Effective January 1. 2022. Citv contribution of $1.650 oar member oar month for medical -
has ith insurance coverage -
An premium amounts above the Citv eaFi'.s;,,, OR ontributlon
y employee ee p Y p
I ,
� Formatted: dawrphan control
w/O
am ou n trfraxiraa�', W9 Citr will be paid by the employee through pre-tax payroll
deduction.
Effective the first day of the second month fol Iowlna City Couneil Adoption of the MOU. amplpv_ees_shall +--
- f Formatted: Indent: First line: 0", Widow/Orphan
no lona_er be allowed to oot out of medical coverage. Elivs,iar�aay-7; 20iar�em}�1[;yee who
I control
i}y$BFi�6IGa�F+BV@FdQa-a+.'' 'r Ti:: I r.,t�., 9 COCAyeat'1F]fi
-
Mo"Oy-�aposited in t{4e-employee's This dele..o.a
eempensat an is net `�p6�2�{e-f�OF�BfiS�Li�-81F1d6F
i€g ia—Pt tN vr� Retirer%[at—^�Y� "mac ^ ^ ` `" apt GUI, RIMSi
Formatted: Indent: Left: 0", First line: 0",
pfeviik ria Cit/ eth^"' cove"ge-
f Widow/Orphan control
+
Formatted: Widow/Orphan control
SECTION 2. Alternative Medical Plans- During the term of this agreement, the City may reopen
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 jp�a-ta 1*r.K •j 217W :.-Jthout 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 hsurance - 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. Lona Term Disabilitv Insurance (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 Soendino 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
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Agreement No
bereavement leave per incident shall be increased gR to ;forty (40) hours i Commented [SP1]: Change to five working days (ora
Commensurate with the emniovees nnrma11v assianed 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 ofthe 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) Prottram - The City has taken all the
Formatted: Normal, Indent: Left: 0", First line: 0",
necessary administrative steps to provide-.�Association 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 iIni aAssociation 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 not a "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 AB340.
(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.
Sifoultaneeas"f€est,,,.G � se same -date, thetaase satafyl- � ..r Il ffloI1lnX r(W-_ *ZFgaiPiag
Lfn}E-,_;h I44Re-A^...v,ear�^^`'�,.,we-pe9nt-{ °�e'�f9r-�(�r-stcoop-IevBls), The -Raw salaFy ss 1edul"
attar#ed-as-Ap€ie��i,�-�31a+=y-5shedr�f a-Ef�ta ve•--F+rs1-Rai-Re�ioA-ef-dariaay�-2(:af�-
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 AssociationuAioq
will be eligible to receive the City -provided retiree medical insurance contribution towards the
10
130
,Agreement No. Formatted: Highlight
member's and his/her eligible dependent(s)' medical costs, which is equal to that amount outlined
in Article Ili. Section 1. sub-gi?clion A [i. ii. iii, l,!J, available to As so c I a t i o n hien members F Formatted: Highlight
currently employed by the Ceity, after a minimum of five (5) fu 11 years of
service with the City of EI Segundo. The City's maximum Der month contribution outlined in Article, Formatted: Highlight
III. Section t $ub-section A ti. ii. III. iv i "r��V-(2119 ita• ^^�„onth ^^^^tribdt+en includes the
PEMHCA minimum contribution required under Government Code section 22892. Anv Retiree
premium amounts above the City contribution amount will be paid by the retiree through -
their CaIPERS annuity.
Will -•-• pect G-GiErfeRi-yifees. efloot we-Fe17FHeIPy i 2018 lha rite willji E F*be4a"f-each 0LE FF Rt
retiree up [a $i 2BB�ar.:in0l Ickea-d^ t"^ ^^'^ a^d hislh f•+s�e-depegAenk(s)' edic-al-sastr
Fe F 01 - FFS RYSR1 Fel' p- P a T Y R _ isal-tilWdace-sefttpi iieeR teward5 ltiaif arm
{sy -"'�iT>h,. 71Is 1 L:_4,atvarHeaR#-9�i„a�:.�,-..a�iBFi
1--Siib-S@fitlOrFAh-il-iii�V�-i.G4rfla^�oi�s.�e�co i}k:21-6Ariffii3HtlFlia-•FNI�
SECTION 3. Deferred Compensation 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 Pavoff - 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,
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 Acencv Retirement Svstem (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 sane 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
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. Catastroohic Illness Leave - 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 level 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 at: 0.34" +
Indent at: 0.59"
CUri-ell tlnon-Probationary employees
Effective 2019. emolovees who have oassed their orobalionary oeriod as of . 2019. vacation Commented [SP2]• Effective first pay period after
accrual rates shall be determined by combinin❑ total years of City service and orior PERS service with ratification of agreement. Does the City still need additional
another ac encu. time for this? 1
Probahaiiary Wmnloyees
Emoloyees- w4a age-9ff oa yed by the-QK—who are on Probation, whath4r nesvEy hired q raiY?otignal.
t^,�cd ORIGxu-a-snlS41'R-Fe-asemedhv^ti4s-A9r?emPnt--w�mr-r�'iee•••••• RoWa95e�-t FBgAb81BWBP�hBe o -aS f
shall have their vacation accrual rates shalWadetermined by cemhinin4 total years of City Commented [SP3]: As ofthe ratification ofthis
service and Prior PERS sorvice with another agencv in the vav period following the emolovees passage agreement
of probation.
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
percalendar year.
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
SECTION t Cotleoe course reimbursamen;
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-City--Manager;- the. City -also -pays -the -cost -of -an
employee's --e :)fe&sional--membership--fees- and- -corkTerence;--meeting--and--Nerkshop-attendalaGe.
Employees who participate inthe program must sign the following agreement:
Educational Reimbursement - "I certify that I successfully completed the course(s),_
receiving at least a grade of'C' or better" (Attach copy of grade verification) Further, I agree
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%
2 100%
A
40%
3 90%
9
30%
4 80%
10
20%
5 70%
11
10%
Probationary employees are not eligible to participate in this program.
SECTION 2. PfofasstUnaj mainUerships. conferences. meelin s. and workshop5
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" I Formatted: Font: (Default) Arial, 10 pt
With the aonroval of the deaanment head andlor City Mana0.e*, the Gily aLsp_ssa�s the Cast of -n-
employee's urofessional tnembershlo fees and conference. maetinq_and wofkshon attendance
I Formatted: Font: (Default) Arial, 10 pt
ARTICLE,( -COMPUTER LOAN PROGRAM I Formatted: Font: Bold
Effective neon ado ofon of this MOU by the Cily Council. the Com outer Loan Proaram will be eliminated.,
and no new computer loans will be aranted by the Citv.
However. current ern Dlovee9 with outstanding CcmDuter Loans. the Cltv and amplovee shall con linue.
to recognize existina loan and roDavment obligations under the same terms and conditions.,
The foltowina lanouaae m relamed subiect to reflect the prior underslandina of the parties and for
historical context "Employees are eligible to receive an interest-€ree-ioarsfree loan not to exceed
$4,000 for the purpose of purchasing personal computer hardware, software, ergonomically correct
furniture and related equipment. Loans shall be repaid through payroll deductions over a three (3)
year period. The City shall retain title, as security, to any equipment purchased through the program
until the loan is fully paid off After the fact financing shall be permitted upon the loan applicant
receiving prior written approval from the Director of Finance Outstanding ban balances must be
paid off at the time an employee separates from the City: The Human Resources Department shall
update Program guidelines periodically as necessitated by changes in technology or organizational
14
136
requirementsX
ARTICLE I -SALARY
,Agreement No.
SECTION 1. Salary Adjustments - €#ective t3egARr ,A"e 451 pay peFied-in-Japivapt 294 S. We
ICn, 11 "fe.1 Ari:nlo ice/ L' �fiei
i3af�31AEq$iiHlt--Sh.3{I ••'•��•,� �SESalafjr-If7&Fe2Ee--(fiVc-pc^.roei7e-rv",n3'�aF�vur*ca-:ir-r^v ..H
The City shall provide the following salary increases to ern olovees.:er aonen6X N40 7:
• Effective upon the fust day of the first Davroll period after City Council ratification of this MO U,
increase base salary by 4%
■ Effective Pay Period that includes October 1. 2019:. increase base aalary by
Two Percent [2%)
■ Effective Pay Period that includes October 1. 2020: increase base salary -
7vp,--by Twp Percent (2%)
Effective Pay Period that includes October 1. 2021: increase base salary by
Two Percent (2%)
SECTION 2. Accelerated Saiary Sten 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%
in 12 month period upon recommendation and approval bythe department head and 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: There are current employees using
this program. The language should be adjusted to reflect
this.
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Formatted: Highlight
fFormatted: Bulleted + Level: 1 + Aligned at: 0.33" +
Indent at: 0.58"
{ Formatted: Indent Left: Q33"
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..� [ Indent at: 0.58" �.
fFormatted: List Paragraph, Left, Right. 0", Line spacing:
single, No bullets or numbering
[Formatted: No bullets or numbering
`' """'I Formatted: Indent Left: Q58" I
SECTION 4. Use of Personal Vehicle on Official City Business - Employees authorized to use a I t-------- fFormatted: Indent: Left 0.08", First line: 0", Right:
personal vehicle while on official City business will receive mileage reimbursement at the rate 10.13", Space Before: 0 pt, Line spacing: Multiple 1.07 li
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 Pav 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. Bilinoual Pav - 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. Lonoevily Pav - 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 Gradej -
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 Paw - 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
$318.04/month
$407.11/month
$449.38/month
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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 1/11, 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 Comoensation
(a) Pursuant to the Fair Labor Standards Act, employees occupying the classifications and
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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 DUtatiOn 0L1r 0OSeS
The City. for ourooses of calculating overtime cay. will Include holldav leave as time worked f
F3yEFtllil�-GisnH711��1iF]n-i7Uf i3us3s.
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 without
paywithout oav, saFAper3saWP1-"ecomoensatory time 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, exceok hohdav 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. 6442
A. Grie�an�e Agrievance isaviolation, misinterpretation ormisa0plicationofaspecific
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 Suoervisor - The first level supervisor of the grievant.
SECTION 2. TIME LIMITS
A Compliance and Flexibilitv - 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 Filino 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.
✓:gvel-41��€tpe gFievanea s na �'^ ^^ ^� 'he r+eyaat may
^ to lha f'iS., AIS .. IG1...^.dr:^... ay
�F95@nl-j�i9•�FByar'^�eac-ii..rA�"aHagEFwlt�ilfi�n:o-�raTnvmmgvv�5--ThQ
C41Y�": 2Flac Or �95igP6�WlI Ifig-3_f}_Ft F1B,R`�BFna-�@6451e13r
••IcmicrvaonT-cm'�f�-f "ridings of{tiis hea499-shag4KAH104
O Level IV - See Article XXI — bindinq arbitration .
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.
B The procedure is not intended to be used to challenge the content of employee
evaluations or performance reviews
18
C The procedure is not intended to be usedto challenge the merits of a reclassification,
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 ACTIONS
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.
FSG- Alternatively. emolovees may acoeal diS6013110 to binding arbitration oursuanl to
Article XXI
' [ Formatted: Space Before: 0.05 pt
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143
Agreement No. 5442
ARTICLE XV -LAYOFF
SECTION 1. Grounds for Lavoff - Whenever, in the judgmentof the City Council, it becomes
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 Emalovees -An employee filling a full-time position shall be given fourteen
(14) Calendar day's prior notice of lay off. Employees transferred, reduced or displaced shall be given
five (5) calendardays' notice. The City Councilmay approve a reduction inthe notice requirements,
if so recommended by the City Manager. ■
SECTION 3. At -Will Emolovees - 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 L a v off - 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. $reakino 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. It 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. Disoiacement Riahts - 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
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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 Reemolcvment Lisl - 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 Riohts 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. Tamoorary Assignment to Hiqher Classification - 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 ofevery 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 ofthe 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 reouest - A bargaining unit employee or l- lnionAssociation 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. Processing of reaUest - The request for reclassification review must be submitted by the
employee or the UmiaAssociation 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 k noiAsscciaE on 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. Comoonents 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 UpiaaAssociation 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.
E. Action by the CIV rnuncil - 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. Challenae to decision on reclassification reauest - The ✓-JnienAssociabnn 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 URionAssociatior: 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 WPr GeAssodaticn and the City
SECTION 5. Saniority__- 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. Standbv Duly -.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. Assionment 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
91480 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 teams. work
opposite Fridays and have opposite Fridays off. whereas "C- shift works Mondav through Fridav 5140
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 schedule5140fwelf" or 41101bufAeA) without
mutual written agreement by (1) the employee, (2) his or her Department Head, and (3) the SPEA
4meRAssociation Board.
acCTION 10 New i11c i oliiicalwn
The City shgIt 11Q& thg-ASSociali6n of all nets' hires in pos{iions in Uus bargaining unit i5?7 ap}se{ldix
J\lo. ?) within 10 working 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.
I Commented [SPS]: Reference the 5/80 team C.
�Formatted: Highlight
Formatted: Highlight
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/or a4JRioRAssccia[ion representative authorized by the
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 Day of
emolovees reoresented by the Association as reouired by law. Amounts to be deducted shall be
certified to the City by the appropriate Association official Any collected authorized oavroll
deductions Shall be transmitted to the appropriate designated oarty. .
The Association agrees to defend. indemnify and hold harmless the Citv from any claim. suit or liability
of any nature arisino from the operation of this orovision, including. but not limited to: {a1 a challenge
to the valid IN of this Section: or lb] any action of the Association taken pursuant to. or in violation of
this Section. The f3istri£tt;i}tv will sive the limenAssuciation oromot written nonce of any claim. suit_
or liability which it contends is subiect to this orovisfon. R Is also agreed that neither anv emolovee
nor the Association shall have anv claim for error against the City for anv deductions made or not,
made. as the case may be_.
ART-tELE-XlIX—AGELNG-Y e u ng eGRE4;3utEN-T
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153
Agreement No. 6442
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154
Agreement No. 544
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agFeemegt.
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:
I. 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:
Bath the City and individual entnlovees covered by this Memorandum e f
Understandine agree that ti;e claims described in this Article shall be submitted to all)
determined exclusively by bindine arbitration under the Federal Arbitration Act. ii
con rormity with the procedures of the California Arbitration Act ("CAA") (CAI. Cori;
Civ. Proc. Sec 1280 et. seq, includine section 1283.03 and all of the CAA's other
mandatory and nermissive riahis to discovery). Nothine in this Memorandum cf
Understanding shall nrcvent either Darty from obtaining provisional remedies to tfa
extent nUrnitted by Cade of Civil Procedure Section 1281.8 either before thb
commencement of or durine the arbitration process. All rules of nleadine. (incIudiq'.
the right of demurrer). all rules and iudement under Code of Civil Procedure 'Sectio t
631.8 shall awty and be observed. Resolution of the disuuta shall be based solely Lino t
the law eovernine the claims and defenses pleaded.
The civil claims which are subiect to final and binding arbitration shall includL-
but not be limited to. any and All emplovmenf-related ctaims or controversie„
such breach of emnlovinent agreement. breach of the covenant of Pood faith all i
fair dealfne. negligent supervision or hiring. wroneful discharge in violation J
public nolic_v. unsaid wages of overtime under the state and federal waW
Davrttent laws. breach of Drivacv claims. intentional or negligent infliction cif
emotional distress claims. fraud, defamation. and divuleence of trade secret,,.
This also snecifie a]Iv includes claims that could be asserted under all state aq l
federal anti -discrimination Iaws. includine but not Iiinited to the Califomia far
Emnlovment and ilousine Act. Title Vit of the Civil Rights Act of 1964, the Ae
Discrimination in Emniovment Act. the Ameriicans with Dlsab1Iilies Act. and th
FarniIv and Medical Leave Act. and claims for discrimination and harassment i t
emnlovtncnt on the basis of race. aee. sex, rclieion, national origin, alienap4
religion. marital status. sexual orientation, disability. political activity. or an
outer staitaorily-protected basis. It shall also include any and all claims a I
emnlovec may have under the Fair Labor Standards Act, the California Lab4:r
Code_ and the Industrial Welfare Commission Wase Orders. as we11 as anv otlkV
state and Federal statutes. "Phis Arlick Y.):Articic XX.I is Further intended k)
annly to anv claim Etnnlovee(s) may have against the Citv and/or any of ili
directors, entolovees. or agents, and to any and all nast and future etnnlovmet I:
rel at ion shins EmDiovee may have with the City regardless of iob position or title~
City shall also arbitrate all claims it has against the emolovee under [[lie satil
rules and reputations set forth herein.
2. Notivithsianding the nrovisions of this Article, e:molnvees covered by. th#
Memorandum of Understandine may elect to file a claim for worker.
comucnsation and unemnlovment insurance benefits with (lie aDpronriate: stat
27
157
Agreement No. 5442
agencies. and administrative charees with the Eoual Emolov7ment Onnortunitv
Commission. Calirornia DeDartment of Fair Emnlavmeni and Flousine,
California Department of Labor Standards Enforcement. U.S. Department of
Labor and anv similar stale or federal aecncv. Unless otherwise reouired by
annlicable law, all other emniovment-related claims shall be resolved by Final
and bindine arbitration and not by a iury in a court of law.
3. To the Fullest extent nermitied by law, emplovees covered by this Memorandum
of U nderstand in a aeras: that lhev shall not ioin or consolidate claims submitted
for arbitration Dttrsuant to this Article with those ofanv other persons. and that
no Foran of class, collective, or renresentat i ve action shall he maintained without
the mutual consent of the parties. Anv dkoute over the validity. effect. or
enforceability of the Drovisions of this Daraeranh- including whether the
arbitration may nroceed as class. collective. or representative action. small be for
a court of law and not an arbitrator to decide.
The Citv shall bear the costs of any arbitration conducted pursuant to this Anic le.
includine the comncnsation of the Arbitrator. all administrative expenses. and
CSR transcripts. Excent as may otherwise be required by law. the narties shall
be responsible Fpr their own auornevs' fees and costs incurred in presenting their
case to the Arbitrator. The Arbitrator shall render a written award within 3e- days
after the matter is submitted for determination- and the award or the arbitrator
shall be final and bindine on the Citv, and the emnlovee.
5. The arbitration shall be held before a sinele arbitrator, who shall be an attorney
at law and an exnerienced emnlovment law arbitrator. The arbitrator shall he
mutually selected by the parties. The Arbitrator shall have the power to award
at legal relief available in a court of law. inc Iudine anv and all damages that may
be available For any of the claims asserted. In addition. each of the parties shall
retain all defenses that thev would have in a iudicial nroceedine_ including
defenses based on the exoirat ion of the statute or1imiint ions and that the damages
beine spuaht are not authorized or are excessive.
B. Anneal of Discinline
The Parties understand that emnlovees covered by this Memorandum of Understanding
are entitled to discinlinary anneal procedures under the City's Personnel Merit System
Administrative Code. Under Administrative Code Section 1-6-8. entDIovees have the
richt to have the Los Arteeles County Civil Service Commission hear anneals from
dismissal. demotion. and susnensions for a period of six (G) days or loneer. The Parties
agree that an emnlovee covered by this Memorandum of Understanding may ant to have
these disci Dlinary actions be submitted to bindine and final arbitration.
The arbitration shall be held before a sinele arbitrator. who shall be an
exnerienced labor and emnlovment law arbitrator. 'I'fte parties shall select an
arbitrator from a list of seven arbitrators nrovided by the State Mediation and
Conciliation Service- if the DaAfes are unable to :each an ngreement in the
selection; of a hearing officer. each shall strike names From the list until a final
name is selected as the Arbitrator.
158
AgreementNo. F^'
2. The Citv shall nav the costs of the arbitrator and court reporter i'ccs and transcrinM1
if a court renorter is reauested by the parties. 'rhe narties shall be res _nonsible Ftp _
their own attornevs' foes and costs incurred in oresentine their case to tiv
Arbitrator.
3. Anv disnute over the validity. effect- or enforceability or the provisions of tl' q
Article. shall be for a court of law and not an arbitrator to decide.
4. Under this Section B. the Arbitrator's authority will be limited to determining
Whether the City has satisfied the seven tests of lust cause: utd. if not. what is ihl
annronriate remedv. The Arbitrator shall render a written award within 30 da \i
after tate matter is submitted for determination. and the award or the arbitra3
shall be final and bindine on the City, the Association and the emnlovee. 'i'll
Arbitrator may not increase Ilse level of discipline.
5. At least ten business days before the scheduled arbitration. the parties sha 1
exchange the following information: (i) a list of all witnesses each party intcn
to call during its casein-chief: and NIL conies of all documents each nartv intend;
to introduce during its case-in-chief.
C. Contract Interoretation Disoutes
The Parties at?ree chat anv erievance riled under the Grievance Procedure. Article XIVI-)-,
of this Memorandum of Underslandine shall be subiect to final and bindine arbitratior .
The Association must rile a written reouest for Lina] and binding arbitration within ten ( IC)
days of receipt or the City's response at Level III.
1. The arbitration shall be held before a single arbitrator. who shall be a t
exnerienced labor and ernplovmcnt law arbitrator. The parties shall select at
arbitrator rrom a list of seven arbitrators provided by the State Mediation m1p
Conciliation Service. If the parties ate unable to reach an aam
rceent in tlh
selection of a hearing oMeer. each shall strike names from the Iist undI a tinr f
name is selected as the Arbitrator.
2. rhe City shall pat• the costs of the arbitrator and court renorter fees acid transcrip .
if a court renorter is reauested by the nartiLs. The parties shall be res; Dons 'ibl0 fes,
their own attornevs' fees and costs incurred in oresentine their case to the
Arbitrator.
3. Arty dispute over the validity. effect. or enforceability of the nrovision s of thj;
Article C. shall be for a court of law and not an arbitrator to decide.
4. The Arbitrator's authority will be limited to internretine the nrovisions of tll;
Memorandum of Understandine said the Arbitrator has no authoritv to add t-
subtract lrom. or modify the Memorandum of Understandine in any way. -17+
Arbitrator shall have the authority to determine ouestions of arbitmbility df
contract interpretation disputes. The Arbitrator shall render a written award withi t
30 days after the matter is subiniLied for determination. and the award or t11;
arbitrator shall be final and bindine on the Citv. the Association and tf1;
emnlovee.
27
159
Agreement No. 5442
5. At least ten business days berare the scheduled arbitration. the uarti_es shall
exchanim the rollawine information: (i) a list of all witnesses each party intends
to cal! durine its case -in -chief; and (ii) conies ❑['all doe umenis each Dart v intends
to introduce durine its case -in -chief.
D. This Article ` XI.Wa;%— Ariie1e 91 is entered into under the California Arbitration Act mid
the Mevers-Milian-Brown Act. and shall be interpreted and construed in accordance with
the law and nrocedures deveIoned under those respective statutes.
ARTICLE XXII — Reopener:
A. Parties agree to reooener regarding amendments to the Personnel Merit Svstem. modification......... Formatted: List Paragraph, Numbered + Level: 1 +
of Munic'saal Code that covers Personnel Merit Svstem: Numbering Style: A, B, C, — + Start at: 1 + Alignment:
B. Parties agree to reopener regarding emolovee evaluation orocess. orocedure. forms, and Left + Aligned at: 0,25' + Indent at: 0.5"
evaluation criterla.:
C. Parties agree that anv and all changes or000sed pursuant to this reopener provision can onlv- Formatted: List Paragraph, Numbered + Level: 1 + l
be Implemented by mutual agreement of the oarties+ Numbering Style: A, B, C,.... + Start at: 1 + Alignment:
Left + Aligned at: 0.25' + Indent at: 0.5"
For the Association: For the Citv of El Segundo;
Paul Samaras. President Scott Mitnick. City Manager
Eduardo Schonhorn David Serrano, Director of Human Resources
Maria Cerritos Lauren Daniels, Human Resources Manager
Evanette Gettler Dana HanR, Sr. Human Resources Analvst
Emma Johnson Leslie D. Ca mob ell. Human Resources Analvst
Date:
Date:
160
Agreement No. 5442
27
161
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Agreement No. 5442-
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Agreement No. 5442
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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
MU -N
MU -S
CO
Current
Proposed
Front
25
20
Side -interior
15
10
Side -street
25
20
Side -residential abutting
100
100
Rear
10
10
MU -N
MU -S
M-1
No
No
Current Proposed
changes
changes
30 20
20
25
25 10
10
15
30 20
20
25
n/a
n/a
n/a
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 (strikethFeu " is language deleted, and underlined is language added):
15-2-7: ^PF"' SP- CG ARG.► AND ENCROACHMENTS:
Encroachments are subiect to the following provisions in the indicated zones: The
fallowing upon apavc vnd ,&\ncrti�hrPent Frvvisionc sro roq►;iroO fer otic inti. -O" zoncc:
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, provided that said window is not
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 {34 in width. ShOtorc, vorholc, cnd crontila may prejeot oi)( inohos
(6"). Columtrc rrfvy projm+ me foot (1');
3. Fireplace structures not wider than eight feet {g} measured in the general
direction of the wall of which it is a part;
4.�enh3uc, %%vedowsr
S- Gucrdreilo for wfety protootian aro6mi! rcmpo and ticir@;
6-A. Planting boxes or masonry planters not exceeding forty twe42 inches{42"} in
height; and
7--.5. Uncovered porches, platforms and landings which do not extend above the
floor level of the first floor. In ad�-itivn, Maim Ramos. stairs. and safety
auardrails leading to said porches., and platforms and landings may encroach
further into a required setback but must maintain at least a three-foot {}
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
twea.+y fact (2V)20 feet of one 04 side yard setback, outside of the front yard
setback, or attached to the front tw3nty foot ('kg')20 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 enerav system aovurtenances 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 twelve
0�412 inches in height above finished grade may have a zero (A) setback in
non -street fronting side and rear yards.
C. Nonresidential Zones ?oninS; 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;- vithout limes emergency generators; air
conditioning and heating units; transformers; solar eneray system
aonurtenances; and other equipment that is accessory to the principal
permitted use. Mechanical equipment does not include electrical substations.
2. Accessory structures include, �•�eut li nitsticn, trash and recycling enclosures;
around -mounted and covered parkinq. solar energy systems: and structures
that exclusively house building operating equipment that is accessory to the
principal permitted use.
3. Mechanical eauioment and non -occupied accessory structures within a
reauired setback are subiect to the foilowina reauiremertts:
a. The mechanical equipment or accessory structure may not be hiaher than
18 -feet.
b. The mechanical eauioment or accessory structure may not be longer than
60 -feet parallel to the line of the vronertv to which it is situated or longer
than 35 -percent of the lenath of such proDertv line to which it is situated,
whichever is less.
c. The mechanical eauipment or accessory structure may not be located within,
a reauired interior side or rear setback area if the interior side or rear
propertv line abuts a residentially zoned urooertv or abuts a public street.
d. Operation of the mechanical esouipment must not exceed the noise,
standards for commercial and industrial JDTooeriv as identified in this Code.
e. The mechanical esouioment or accessory structure must be set back from
anv interior side or rear propertv line to meet all access. safety, and
screenina reauirements as specified in title 13 of this Code and this title.
Page 4
171
includinaE. but not limiter to, adequate ine_ rens and earens for public safety
emolovees.
P. Nenr sidential Zoning; Canditic�ns:--�r nanresiden icl zenin5 daotrioto, the
FneGhaninai-eq 4m:Rent end a r3qu+red
setbaek ary ut-jvcA te the fo ing pond'*
1. The t er ccctcoayy er"--Avrc w net histo thin Ng4teen
2. The m. ch&\nivel rent cr c-�c^ccery 0rw06;rc is net lenger then nirt)y feet
(eQ') pereVol to the prep-erty line *^ `"*.ich it io eitwctod or no lannar than thirty
fico peroont (3FA) of tho itRgth of the y lino to iwhioh it is situated,
whiehovcr is less.
3i* The mes#ari!^I rg0Fmc\~it er ncccssery c mOvrc eenno be Icxtcd %tea
requirodinterior cid er rccr cc*'' 1 ea if the interior oido o: roar property
�uts 1, residentialliy acne d property.
The manhn7ircl cGuipm!3nt or &"-�ccry ctruoturo ocnnot be Ic9etsd witL,
ree�c,; in:oricr eiclo cr rcrr s44kmok oroa if tho inter -tee cr rctr-rcporty
lino abuts a PUbNn t stitee
LT
--9porc:ir� the m30hcnic-,al v�vipmont can^^*meed the neics ctcnidwedc frr
Gomrri,&\"rml zi nd industrial pr-apeFty as identified in thio Com
6. Tho mont or cecg&wry Or::"vrs mv.-t "c ii.� beck, from cny
intarinr side er ra r rrc�pc-rty I;nc tv m/C2t 7Jl. s�3ocss,--sa#etly, end ovcce-nimi4g
r :c at, titla 12 cf th4s GGdo��i�end trhiic title, includAnS., M net
4m. itod to, adequate ingress and e�eeye fer pc:btic oaf -2\.y cm-leyeets..
D. Urban Mixed Use North (MU -N). Urban Mixed Use South (MU -S), Corporate Office
(CO) and Light Industrial (M-1) Zones: In addition to othe the encroachments
permitted in nonresidential zoning districts aeneraliv, otcirs; pedeatrion romapa; cnd
related safety rwcrdreiis; 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 (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 tree-feet-swix42 inches (X6!'3 in height and maintain at least a five
foot} distance to a property line. Walls, fences, and/or hedges may exceed
thrco foot si)142 inches {X61� in height, provided that the portion exceeding
three fvvt-642 inches {X6a3 in height is of a transparent or translucent material,
subject to the review and approval of the Director of P1cnninS and EB6A
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
Planning and B iildinn 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 tan thvusaPA (10,000) square feet.
C. Height:
1. East of Pacific Coast Highway 6cpulvodo €?ia ilk: No building or structure
shall exceed 200 -feet. Uve hundred -feet (`?CL').
2. West of Pacific Coast HH q wa Sepvl\`de iiv0eva-rd: No building or structure
shall exceed 45 -feet. forty five favt ('15').
3. If the subject property abuts residentially zoned property, no building or
structure shall exceed 40 -feet. forty (SIC'').
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: Twonty five -feet (2-5'-) 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 20 -feet Meanty five
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 erre
huedFed 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 eRe
wed 100 -feet 400} shall be provided, including a twenty five 25 -foot
¢24} landscape buffer.
4. Future Street Riaht-of-wav Lines. If anv future street richt-of-wav line has
been established by olan adooted by the city council. such line shall be
considered to be the orooertv line for ❑urooses of determinina setbacks.
5. Easements. Setbacks from legal easements. other than street right-of-way
easements. shall not be required. In addition to the aoorooriate review and
aoproval by the city. no construction of anv structure or improvement 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.
E. Lot Frontage: Each lot shall have a minimum frontage on a street of one h6:nf.!red
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
FAR may be granted for properties east of Pacific Coast Highway Ecpalvoda
Bos:lviar� only, with approval of a transfer of development rights (TDR) plan.
100'
1
= 10,000 St
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 tan thovicenC (10,000) square feet.
C. Height:
Page 8
175
1. Buildings and structures shall not exceed a height of ono hwndrvO --sovority five
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 f3O' shall be provided.
4. Future Street Riaht-of-wav Lines. If anv future street riaht-of-wav line has
been established by plan adopted by the citv council. such line shall be
considered to be the oropertv line for purposes of determinina setbacks.
5. Easements. Setbacks from leaal easements. other than street richt-of-way'
easements. shall not be required. In addition to the aporDoriate review and
approval by the city, no construction of anv structure or improvement is
allowed within a legal easement without written authorization from the leaal
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 -(1093.
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 Highway Sepul a Wow-IQ\qrO
only, with approval of a transfer of development rights (TDR) plan.
I ! M .V • N Zone 1
NE 10,000 sf
F.A.R. at 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 2019.
Drew Boyles, Mayor
Page 10
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 (6tFikethFGU0 is language deleted, and underlined is language added):
15-2-7: OPEN SPATE AREAS AND ENCROACHMENTS:
Encroachments are subiect to the following arovisions in the indicated zones; The
#e#iewing upon ^.nes ani cnw carhmcnt ,1rovioicns cro roauired for the in�,iantod gonna:
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 (3} in width. Shcttvm, corbcla, and deRtil^ may prej of o;i[ indho's
(5"). Cclvmno may prcjoot ono foci (1');
3. Fireplace structures not wider than eight feet @4 measured in the general
direction of the wall of which it is a part;
4. Gre nhovoc windmvc;
5. C►aarftdo for ev.-falty prctioation =uns! rempg cns! otcirc,
64. Planting boxes or masonry planters not exceeding forty tw942-inches (42") in
height; and
7—.5. Uncovered porches, platforms and landings which do not extend above the
floor level of the first floor. In---ad4ition, r}circ Ramos, stairs. and safety
guardrails leading to said porches., and platforms and landings may encroach
further into a required setback but must maintain at least a three-foot (34
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
twenty f" -A (2Q')20 feet of one ¢ } side yard setback, outside of the front yard
setback, or attached to the front twenty fcot (30')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
conditioners. and solar enerav system aoourtenances 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 (24 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-_ +nc#es
0,2412 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 withvv� limitvtio-F�7 emergency generators; air
conditioning and heating units; transformers; solar enerav system
aoourtenances: and other equipment that is accessory to the principal
permitted use. Mechanical equipment does not include electrical substations.
2. Accessory structures include-, withoa` limitatk�R-, trash and recycling enclosures;
around -mounted and covered oarkina solar enemv systems and structures
that exclusively house building operating equipment that is accessory to the
principal permitted use.
3. Mechanical eauigment and non-occuoied accessoryy structures within a
required setback are subiect to the followina reauirements:
a. The mechanical eauigment or accessory structure may not be hiaher than
18 -feet.
b. The mechanical eauioment or accessory structure may not be lonaer than.
60 -feet r)arallel to the line of the orooerty to which it is situated or Ionae�r
than 35-❑ercent of the length of such ❑rooertv line to which it is situated.
whichever is less.
c. The mechanical eupioment or accessory structure may not be located within
a reauired interior side or rear setback area if the interior side or rear
orooertv line abuts a residentialiv zoned orooerty or abuts a oublic street..
d. Ooeration of the mechanical eauioment must not exceed the noise
standards for commercial and industrial orODerty as identified in this Code.
e. The mechanical eauioment or accessory structure must be set back from,
anv interior side or rear orovertv line to meet all access. safety. and
screenina reauirements as specified in title 13 of this Code and this title,.
Page 8
186
including. but not limited to. adeauate irwress and egress for public safety
emplovees.
D. Nonrosidcntial Zoning; C3nditieno: Fcsr nenrccis!entiO, zvninr 0:otriot3, tho
moohcrin&4 3gruipment ens nonecc-.dpicd c000000ry etruvt6Tes-N °thin c rsgvirc�
or-\&c^i are uwkjcn tc the f0owinS ecnditions:
1. Tho mecheniml cgaipm:.*nt cr cc"'\,3oary otru3ts;ro is not highw then C�5htmn
?. Tho mchanil cqcipmt or c<ccvwt^r}: str",viwro io net Ie:»,r thsn oixty foet
(67) para\'lel to tho property lino to which it is aitvoted er ne lcncSw than thirty
five porccnt (a6°/) of the -length of the ; rcti~t�r I % tc which it it Jt�,`ntc�,
hiEhc�: c; * ICCO.
?. Th3 mc-thnimi-1 oquigment cr ccoc.t^ry stme4ire ocnn t tc 1"etec within n
fequircis! interi3r oido or rear wtbaolc arca if tho into icr oidn or r^-,ar prepi.\rty
line cl vtc C rooi&-44#Wly urwi pr�ti�.rty.
4.Thv mc-chcniaal oqu�.pmant 3r sc=ooery otruoturo oannat ba loonted within
rcgiwircd inter,for cid or .var ✓3�a&Qk cxea if th13 intorior aide or roar prcperAy
liar skvta c publie otr"~A,
6. Operating the mrcharaecl oqu%�mont ocnnot w(acc4 the noice of&\Idcrc�a fcr
semen raicl and industrial property cc i&^,ntifiad in thio
Cad,--
. The moohcni=l equoment ar ctruotum mu3t be Sot baolc from cr y
4 tcrior aide or rear property lino to moot cll coon.;- safety, and oormnieg
res,:iromonto co aFccifi3c' in title 13 cf this Cc& and th;c titch, including, but not
limited to, odcqucto inrreso cn� vgreo:c fcr pu!' lic oofety rmplcyccs.
D. Urban Mixed Use North (MU -N). Urban Mixed Use South (MU -S), Corporate Office
(CO) and Light Industrial (M-1) Zones: In addition to ether the encroachments
permitted in nonresidential zoning districts aenerally, atcrr3; pod3strian amps; -a d
related--safcty gucr&c lc; 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 to three feet six42 inches ' ! in height and maintain at least a five
foot45- distance to a property line. Walls, fences, and/or hedges may exceed
thr--\o foot oix!2 inches {3641} in height, provided that the portion exceeding
three forst sw42 inches kX69) in height is of a transparent or translucent material,
subject to the review and approval of the Director of Planning cnd Ri 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 -of
Planning anBuilding 5af-2ty.
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 of ten theuccn� (10,000) square feet.
C. Height:
1. East of Pacific Coast Hite Sep; vcdc Qctilcvard: No building or structure
shall exceed 200 -feet. two hun&vr foot (2QQ').
2. West of Pacific Coast Highway Sep4Wecl^ Qcwl���cr�: No building or structure
shall exceed 45 -feet. forty fi\�o foot (4-5+.
3. If the subject property abuts residentially zoned property, no building or
structure shall exceed 40 -feet. fortty f3et (40`).
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 4" et k2,5� 20 -feet minimum.
2. Side Yard: Fof een feet (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 twonty five
feet (2-5� 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 ene
hundred100-feet 4009 shall be provided, including a twonty fi\te 25 -foot
(25) landscape buffer.
3. Rear Yard: Ten feet44-0-, 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 twenty ye 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 twenty 25 -foot
{2 } landscape buffer.
4. Future Street Riaht-of-wav Lines. If anv future street riaht-of-wav line has
been established by olan adopted by the city council. such line shall be
considered to be the property line for purposes of determinina setbacks.
5. Easements. Setbacks from legal easements. other than street richt-of-wav
easements. shall not be reauired. In addition to the at)propriate review and
anoroval by the city. no construction of anv structure or improvement is
allowed within a Ieaal easement without written authorization from the leaal
holder of the easement. Such authorization shall be in a form acceptable to
the director.
E. Lot Frontage: Each lot shall have a minimum frontage on a street of ono hunk
100 -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 Coast Hiahway Sepulveda
BoOov&rd only, with approval of a transfer of development rights (TDR) plan.
t
1 =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 thevroend (10,000) square feet.
C. Height:
Page 12
190
1. Buildings and structures shall not exceed a height of ona hs:nlrod -=ie�
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 five 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 (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 t" 20 -feet (W) shall be provided.
4. Future Street Riaht-of-wav Lines. If anv fUtt.tre street riaht-of-wav line has
been established by olan adopted by the citv council. such line shall be
considered to be the property line for purooses of determining setbacks.
5. Easements. Setbacks from leaal easements, other than street riaht-of-way
easements. shall not be reauired. In addition to the aporooriate review and
approval by the citv. no construction of anv structure or improvement is
allowed within a leaal easement without written authorization from the legal
holder of the easement. Such authorization shall be in a form acceptable to
the Director.
Street
Page 13
191
E. Lot Frontage: Each lot in the MU -N Zone shall have a minimum frontage on a street
of oro hundred 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 Hiahway wac0 °�►aevard
only, with approval of a transfer of development rights (TDR) plan.
r-� - - _:
I t M -U-N.Zone i
d I
.' MOM,
=10.00051
F.A.R.= 1.3
B10g. 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, PrincipalPlanner- V ._
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
Setbacks in Select Commercial and Manufacturing Zones
Front
Side -interior
Side -street
Side -residential abutting
Rear
CO
Current Proposed
MU -N
Current Proposed
25
20
30
15
10
25
25
20
30
100
100
10
10
5
n/a
20
10
20
MU -S
No
chain,,es
20
10
20
n/a
5
M-1
No
�:har�bes
25
15
25
n/a
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
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: August 20, 2019
AGENDA HEADING: Public Hearing
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 ManagerC�0'
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
?3
! 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
n
e
m
EL SEGUNDO BOULEVARD
M PHASE I :: PHASE II PHASE III 1:1 PHASE IV
ale +
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 Aereement
+ 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.
Planning Commission recommended changes to the Develojament Agreement
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.
Mitip-ation Monitorine and Revortinv 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 El
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
EI Segundo, California 90245
4972 .14"WJ
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 . ... ......................... .................................................
4.10.1 Infrastructure
Capacity....................... . ....... .................................................7
4.10.2 Phasing
Flexibility..................................................................... . ................7
4.10.3 Infrastructure
Completion...........................................................................................7
i
214
� �� � � � ��/�
~��v� ~���
4.10 Prevailing Wages '..-............. .....~.^-__-.--............-..----.7
4.11 Term ........................................................................... -___,,.,,,,,,,_~_8
4.12 Term of and Other Project Approvals .................. ...................
-0
4.13 Satisfaction of Mitigation Measures and Conditions ........... -,,^.~,°._,,,^,,^,8
4.14 loLieu Credits .......................................... -__,_--~,,^^,,~,,^,,._.^,,,,,.__8
o. Developer Agreements .......................................... ~,,~.~,.^.~-_^~,.~^,,,.^_,"^,,,,~,,,,,,^,,^,^,^8
5.1 General .................................................................. ...................... _..--...~_-.-_.0
5.2 Maintenance Obligations ... ............................ ............................... ......................... 0
5.3Sales and Use Tax ....................................................................... .~..-..~-----'0
5/4Title 24 Energy Requirements .............................................................
9
0. City Agreements __-.-__--_---.-_-___...-~...~~...~.~.~..~~_-.~..~~~_~'.
9
6.1 Expedited Processing --______,.~~~,,~~.~~~~.,.~.~.~,.._,.~,~,,~~.~...
9
6.2 Processing Cooperation and Assistance ......................................... .....�,..................
9
6'3 Processing During Third Party Litigation ..............................................................
10
6,4 Reimbursement for City's Efforts muBehalf ofDeveloper ...........................
-10
6.5 City's Efforts toDefend and/or Enforce Mold Agency Agreements .--~.-.'l0
TTraffic Improvements ........................ ................................ ..... .... ,......... .......... ...
-.......... lQ
7.1 Nash Street ................................................................................... l8
7.2 Continental Boulevard Access ....................................... ....................
ll
7.3f3 Segundo Boulevard Improvements ...---....,.,.........'^....---,~l%
7.4 El Segundo Boulevard Bicycle ���..^^,,-.~~-.,....................
?.5Nash Street Extension Bicycle Lane .................... .-.......... ...................
l3
7.6 Green Line Station ................................................. .......................... l3
7'7Coral Street Connection ............................................ -- .- .' --]4
M
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4972 7�
8. Utilities ........................_--------------- - 1a
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
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4972fa
11.1 Mortgage Not Rendered Invalid.... -........................ :........................................19
11.2 Request for Notice to Mortgagee..................................:.:..............................,.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...................................................................................25
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
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4972 1"
DEVELOPMENT AGREEMENT
This Development Agreement is made and entered into by and between the CITY OF EL
SEGUNDO ("City"), a general law city and municipalcorporation, and RAYTHEON COMPANY
("Developer"), a Delaware corporation, as of this , day of M Amari , 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
49 7 2 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:
a 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 '!°WJ
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;
■ Zone Text Amendment No. 11-01, as approved by Ordinance No. 1516;
■ Vesting Map No. 71551, as approved by Resolution No. 4958; and
+ 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 173
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. 13indin-a 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 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 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.
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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 Resunsntion of Rigllts. 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. Devedoo meat of the Campus. 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. Heialit and Dedication of Land For Pttblic Purnoses. 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 Develoo ment Standards. The Development Standards applicable to the Campus are
set forth in the Project Approvals and Applicable Rules.
4.4 Building Reaulations. 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 SubscctL►cnt Rules. 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
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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 Timing of Develonment. In Pardee Construction Co. v. Citv 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.
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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 Canacity. 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 Phasing Flexibilitv. 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.
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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 Tenn of Manfsl and Other 11roiect Anarovals. 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.
Develooer Aareements.
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 Obliaations. 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
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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. Citv Aareernents
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 Processine 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.
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6.3 Processina Durina Third Partv Litivation. 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 City's Efforts an Behalf of DeVelODer. 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 Citv's Efforts to Defend and/or Enforce Multi Aaenev Aareenients, 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 h noro vements.
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.
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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 El Sep -undo Boulevard Improvements.
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:
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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 Ser!undo 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:
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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 Bicvcl : 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.
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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.
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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. Pavnients after Aoorvval.
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 Pavmenl in Year 10. if 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 lee. 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 Standau)d Suaecifitcations
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.
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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
that 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 Goad Faith Coninhance
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 City Report - Information to be Provided to Develooer. 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 Develotner's Reoort. 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
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issue and any issues raised by the City Report provided to Developer in accordance with Section
12.3 above.
12.5 Notice Of Non-Comniiance. Cure Riahts.. 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 Findinp,. 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 f=ailure 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
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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 for Breach. The Parties agree that the remedies for breach of this
Agreement are limited to the remedies expressly set forth in this subsection. The remedies for
breach of this Agreement by City or Developer are limited to injunctive relief and/or specific
performance.
14.4 Itesolution of Disuutes. 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 (3 0) 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 Att,ornevs 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. Morteaaee 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
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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 Rendered 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 Reauest for Notice to Morteaece. 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 Morteauee'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 13ankruutev. 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.
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15.6 Disafhrination. 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. Estot mel 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 Oneratina, 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
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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 Aereement. 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. Comeration in the Event of Leeal Chailenee.
20.1 Third Partv Challenees. 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
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(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 Party Challenmes Related to the Avolicabiiity 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
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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
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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 Aureement. 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
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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. Arnbiatlities or Uncertainties. 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. Sumi-session of Subseauent 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. Relationshir) 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 Party 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 must have any right of
action based upon any provision of this Agreement.
31. Recordation of Agreement and Amendmenis. 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 Citv 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
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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. 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 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. CoGnnteroarts. 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/flolidav 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
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: h"A*
Suzan: Fuentes Mayor
ATTEST:
IY7 . • �l
r� wave .,
t� ty c_ erk
APPROVED AS TO FORM:
MARK D. HENS City Attorney
BY N )
Karl H. Berger, A. is , it City Attorney
DEVELOPER:
R*1EVONCU PA
00
. Moore
resident -Business Services
27
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
Building
E-1
E-2
E-3
E-4
E-5
E-6
E-7
E-20
E-21
E-23
E-24
Rain Shelter
EXHIBIT B
EXISTING DEVELOPMENT
Use
Office, Lab/R&D, Warehouse
Office, Lab/R&D, Warehouse
Office, Lab/R&D, Warehouse
Office, Lab/R&D, Warehouse
Office, Lab/R&D, Warehouse
Office
Office, Lab/R&D, Warehouse
Storage
Office, Warehouse
Restrooms
Recreation
Rain Shelter
mm
4972 '"1
Net Square Footage
1,055,479
41,518
35,137
642,871
24,865
2,261
54,924
7,076
4,500
2,330
1,530
2,100
1,874,591
247
4
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. Assianment. 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. Assummtion. 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. Remaitider of Proiect. 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"
RAYTHEON COMPANY
Date: By:
Its:
By:
Its:
"ASSIGNEE"
a
Date: By:
Its:
C-2
7
249
X9%2
.:,i
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
Director of Planning and Building Safety
STATE OF CALIFORNIA
SS:
COUNTY OF )
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.
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
251
EXHIBIT D
PROJECT MILESTONES AND THRESHOLDS
Project Item
6 annual payments. First
payment of $500,000 and five
subsequent payments of
$700,000 each. All payments
to the City's General Fund.
Payment of $5,000,000 to the
City's General Fund ten years
after project approval.
$0.50 per gross square foot
fee for all new development
(floor area not existing on the
site on the project approval
date) is required.
Intersection Improvements -
Mitigation Measures TRA -1
through TRA -9
Nash Street Roadway
Extension, including Class II
bicycle lane
Threshold or Milestone
First annual payment is due
on March 31, 2016. The
final payment is due on
March 31, 2021.
If the Nash Street Roadway
Extension is not completed
within 10 years of the
Effective Date, then a
$5,000,000 payment is due
10 years after project
approval.
The $0.50 per gross square -
foot fee is required before
issuance of City building
permits for any new floor
area on the project site.
Before Certificate of
Occupancy is issued for any
building in ESSCP Phase II
(buildings in project area
adding trips in excess of
Phase I Peak Period Trip cap
of 225 trips)
Before Certificate of
Occupancy is issued for any
building in ESSCP Phase II
(buildings in project area
adding trips in excess of
Phase I Peak Period Trip cap
of 225 trips)
49/2 6i -J
Required Action
Total payment of $4,000,000
over six years payable in six
annual payments.
Total payment of $5,000,000
payable in its entirety 10 years
after project approval.
Payment of 0.50 per gross
square foot fee to the City's
General Fund before issuance
of building permits.
Proof of Payment of all
applicable fair share
mitigation fees must be
provided to the Director of
Planning and Building Safety
and Director of Public Works.
Completion of street and all
associated public
improvements.
Dedication of the Nash Street
Improvements to the City.
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Continental Boulevard Before any building located
Extension along Continental Boulevard
is sold, leased, or used by
any third party not an
affiliate of Raytheon.
Parcel 26 Within 30 days of the
effective date of the City
Council ordinance
approving the ESSCSP.
Parcels 20 and 22 Within 30 days of the
effective date of the City
Council ordinance
approving the ESSCSP.
El Segundo Boulevard
Improvements, including
Class I bicycle path
El Segundo Boulevard
Improvements, including
Class I bicycle path
El Segundo Boulevard
Improvements, including
Class I bicycle path
Green Line Station Bicycle
Parking Facilities contribution
Before a certificate of
occupancy is issued for any
building on Parcel 15 or 16
of Vesting Map No. 71551.
Before a certificate of
occupancy is issued for any
building on Parcel 14 of
Vesting Map No. 71551.
Before a certificate of
occupancy is issued for any
building on Parcels 1, 2, 3 or
4 of Vesting Map No.
71551.
Before Certificate of
Occupancy is issued for any
building in ESSCP Phase II
(buildings in project area
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
4972
Developer must provide a
dedication or public access
easement to City for
Continental Boulevard.
20 -year irrevocable offer to
Dedicate
20 -year irrevocable offer to
dedicate
Required roadway
improvements must be
completed on the El Segundo
Boulevard frontage of Parcels
15 and 16
Required roadway
improvements must be
completed on the El Segundo
Boulevard frontage of Parcel
14
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.
Confirmation that the $75,000
contribution has been
transferred to either the City
or LACMTA.
253
Green Line Station Pedestrian
Easement
To obtain access to the El
Segundo Boulevard City
sewer trunk line for new
development in the ESSCSP
area.
Non -Raytheon employee
access to 7.54 acre
Recreational Area.
Transfer of 7.54 recreational
area to the City for use as a
public park.
Before Certificate of
Occupancy is issued for any
building on Parcel 13 or 14
of Vesting Map No. 71551.
Developer must make its
contribution at the time the
City awards the sewer
improvement project, but no
later than December 31,
2018.
4972 173
Complete construction of a
paved walkway at least five
feet in width and compliant
with ADA requirements.
Contribute 25% of the cost of
the El Segundo sewer trunk
line up -grade up to a
maximum of $375,000.
If 28.44 acres of the Specific Access must be provided to
Plan area is sold to user that the recreational area for all
is not Raytheon or a
Raytheon affiliated
company.
If the 7.54 acre recreational
area is located outside of the
Raytheon facility's secured
perimeter (south or east of
the Nash Street Extension or
west of Continental
Boulevard).
D-3
persons employed within the
Specific Plan area. Access
must be formalized through
agreements between Raytheon
and owners of land within the
Specific Plan area.
Raytheon Company must
record a 20 year offer of
dedication for future potential
park purposes if the recreation
area is located on Parcels 1, 2,
3, 4, 7, 8, 13, or 14 of Vesting
Map No. 71551, or other
parcels as indicated in the
Conditions of Approval.
254
EXHIBIT E
FEE/IN-LIEU CREDITS
Project Item
Credit
X972 .:..
Construction Cost of the Nash Street Traffic Impact Mitigation Fee credit for
Extension and Associated Improvements the actual cost of construction.
Appropriate documentation verifying costs
must be provided and accepted by the Citv.
El Segundo Boulevard Improvements, Traffic Impact Mitigation Fee credit for
including Class I bicycle path the actual cost of construction.
Appropriate documentation verifying costs
must be provided and accepted by the Citv.
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
Traffic Impact Mitigation Fee credit for
the required fair share fee paid to the City
of El Segundo.
$ 75,000 payment may be credited against
Traffic Impact Mitigation Fee.
D-4
255
ORDINANCE NO.
AN ORDINANCE APPROVING AND ADOPTING A FIRST
AMENDMENT TO DEVELOPMENT AGREEMENT NO. 11-02, TO
AMEND THE PHASING AND TO ASSIGN CERTAIN
IMPROVEMENTS AND MITIGATION MEASURES TO THE
APPROPRIATE PHASES.
The City Council of the City of EI Segundo does ordain as follows:
SECTION 1: The City Council finds and declares as follows:
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; and
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. and
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; and
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. On August 1, 2019, the Planning Commission reviewed and considered the
proposed amendments, and adopted PC Resolution No. 2865
recommending the City Council approve this ordinance amending
Environmental Assessment No. EA -905, EI Segundo South Campus
Specific Plan and Development Agreement No. 11-02; and
F. On August 20, 2019, the City Council conducted a public hearing to receive
public testimony and other evidence regarding the applications including
information provided to the City Council by City staff and public testimony,
and from the applicant; and,
G. This Ordinance and its findings are made based upon the testimony and
evidence presented to the City Council at its August 20, 2019, hearing
including the staff report submitted by the Planning and Building Safety
Department.
SECTION 2: 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 Development Agreement will have
no possible significant effects and, therefore, no further CEQA analysis is required.
SECTION 3: General Plan and Specific Plan Findings. After considering the
above facts, the City Council finds 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 4: Amendment to Development Agreement Findings. Pursuant to City
Council Resolution No. 3268 and Government Code §§ 65857.5 and 65858, the
City Council finds that:
A. The proposed amendment to the Development Agreement is consistent
with the objectives, policies, general land uses, and programs specified in
the General Plan as described above and the EI Segundo South Campus
Specific Plan, as amended by this ordinance.
B. The proposed amendment to the Development Agreement is compatible
with the uses authorized in, and the regulations prescribed for, the land use
district in which the real property is located.
C. The proposed amendment to the Development Agreement will not be
detrimental to the public health, safety and general welfare.
D. The proposed amendment to the Development Agreement will not
adversely affect the orderly development of property or the preservation of
property values.
SECTION 5: Approvals and Authorization. The City Council hereby approves and
adopts the First Amendment to Development Agreement No. 11-02, attached to
this ordinance as Exhibit "A". Upon the effective date of this Ordinance, the Mayor
is authorized to execute the amendment on behalf of the City. The City Manager
is hereby authorized and directed to perform all acts and execute all documents
needed to effectuate this Ordinance.
SECTION 6: 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 7: 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 8: 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 9: 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 10: Recordation. 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 11: Severability. If any part of this Ordinance or its application is
deemed invalid by a court of competent jurisdiction, the city council intends that
such invalidity will not affect the effectiveness of the remaining provisions or
applications and, to this end, the provisions of this Ordinance are severable.
SECTION 12: Effective Date. This Ordinance will go into effect and be in full force
and effect on the 30th day after its passage and adoption.
PASSED AND ADOPTED this day of 2019.
Drew Boyles, Mayor
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
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
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 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."
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
El Segundo, California 90245
Attention: City Manager
Phone: 310 524-2301
Fax: 310 322-7137
E -Mail: smitnick(a,elseaundo.orp,
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
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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").
Plannina and Building Safety Departmient
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
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266
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.
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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.
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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
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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.
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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
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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.
Buildinci 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.
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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.
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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.
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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 Department Conditiciis
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.
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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.
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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
AGENDA ITEM STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: August 20, 2019
AGENDA HEADING: PUBLIC HEARING
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 J.G. v
APPROVED BY: Scott Mitnick, City Manager pq_r" SW�
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 P U 13Li S111? I) 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,
(WILL 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.
281
Proposed
REF #
SERVICE
FY 19-20
PBS
New address processing
$ 625.00
PBS
Temporary sign permit - private property
227.00
PBS
Downtown parking in lieu
17,500.00
PBS
Smoky hollow parking in Iieti
28,000.00
PBS
Entertainment permit renewal
55.00
PBS
Lot tie covenant
614.00
PBS
Site plan review
COST
Recreation
Youth sports organizations per player fee
Recreation
Resident
10.00
Recreation
Non-resident
30.001
Recreation
Competition pool - rental - hourly rates
25.00
Recreation
Short course - for profit - short term rental <1 Ohrs/wk
Recreation
Short course - for profit - long term rental > or = l 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
j
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
Long course - non-profit - non -prime time
20.00
Recreation
Half pool - alternate use - for profit - short term rental <1 Ohrs/wk
105.00
Half pool - alternate use - for profit - long term rental > or =
Recreation
l Ohrs/wk
85.00
Recreation
Full pool - alternate use - for profit - short term rental <1 Ohrs/wk
210.00
Full pool - alternate use - for profit - long term rental > or =
Recreation
l Ohrs/wk
170.00
Half pool - alternate use - non-profit - short term reantal
Recreation
<1 Ohrs/wk
85.00
Half pool - alternate use - non-profit - long term rental > or =
Recreation
l Ohrs/wk
65.00
Full pool - alternate use - non-profit - short term rental <
Recreation
l Ohrs/wk
200.00
Full pool - alternate use - non-profit - long term rental > or =
Recreation
l Ohrs/wk
150.00
281
C Recreation
Teaching 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 - long 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 competition pool (< 6 hours)
1,850.00
Recreation
Full day teaching pool (6+ hours)
700.00 f
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
IProposed Master Fee Schedule Amendments FY 2019-2020
REFfI SDiVIO=
AD-0Ol SHORTMINI ENTALREGISTRATION
GRTren[ Prq—t
FY IA19 FIL 1320
Tammen[
NEW
2MOD $
206 PERAPPN-RGN
RENEWAL
15500 $
190 PER RENEWAL
AD-OD2 num—Or NiOCESSING
PERM R AFPLICATIONFEE
1233 $
1,264
EARLY FILM PERMIT FEE
16140 $
106 PEA DAY
REJISICIVRIDER
19000 $
196 EACH
PUBNCRIGHF-DF-WAYU9AGE
OTY UL—LON USAGE
PDUCE PEA90NNEL
]50 DD $
VARIOUS
ACIVAl CGST9
]]4 PEADAYPERLOCAAON
PEA DAY PER L—CN
FIREPEPSONNFL
FUBOCWORKSPERSONNEL
ACIIIAL COBT9
A[IVPL COST9
AD -OB NSF CHEIX PRI)CETSING
FIR57NSF CHECK
4500
45.00
EACH SUBSEOVENT NSF CHECK
9000
9000
ALLWf CREDDG DPRCE59ING
PROCESSING FEE
2]5%
225 Y. OFA MOUNT CHARGED
AD-Ip5 COPY SDiVIIX
FIMT5COPIE9
FACHADDINONALCDPY
NDCWNGE
020 $
021 PERM y
FPPCCDPIES
010 $
010 PEA COPY
AD -OW W UNENTCEFEEU TIDN
—11-OON FEE
3 DD $
3 PER DOLUMFM
ADL02 MEEDIME) 0 COPYING
COPYING FEE
10 DD $
10 PER TAPEJDNK
AD -006 INAMTI-EE9GING
APPLICATIONON FEE
200 DD $
200 PER APPOGSAON
BL�1 BUILDING PLAN CHECK 9DiVIOS
$
-
SEEAPPENDIXC
BLAU2 BUIIDINGINSP CINSERNC6
$
-
SEEAPPENDIXC
E— MWIPLAW ILE SCANNING 9ERVCEs
91/2"X11"
1.20 $
124 PER SHEET
—ER
]BO $
]A6 PEA SHEET
El— DEM—EMLITHEMM
$
- DEPOSITDETERMINDEDRY—FF
E-1 STOCKPIIE(BGHIIOWSIIEPLANCHECK
$
- SERVICE NO LONGER PROVIDED
ENDOl ENCRGACHMENTPEHMIT
PERM R ISSUANCE
]35 DD $
139
INSPECTION
200 $
2DG 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 day of . 2019.
AYES:
NOES:
ABSENT:
ABSTAIN:
PASSED AND ADOPTED this day of August, 2019.
Drew Boyles, Mayor
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
:.
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
Presentation of Investment Portfolio Report for June, 2019
(Fiscal Impact: None)
RECOMMENDED COUNCIL ACTION:
MEETING DATE: August 20, 2019
AGENDA HEADING: Presentation
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, Treasurer Q -1t) -
APPROVED BY: Scott Mitnick, City Manager ' 6, 5�
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
;..
e&l o, a Se# r�
elpix a/I& 6WI J``W,40aw"Z
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 Summarv,
The investments as of June 30, 2019 are as follows:
June Portfolio Summary
Page 1 1
288
Market
Securitv Tvpe
Cost
Market value
WAM
% Yield
% of Total
Reserve Portfolio
Government
20,125,943.84
20,188,804.34
2.75
2.14%
20.91%
Municipal Bonds
2,870,211.50
2,918,932.50
3.79
2.64%
3.02%
Corp. Bonds
12,514,593.62
12,607,912.73
1.88
2.43%
13.06%
SUPRA's
2,970,703.00
2,989,675.00
0.99
2.21%
3.10%
CD's
21,469,400.20
21,504,159.60
2.42
2.34%
22.27%
Union Bank Trust
59,950,852.16
60,209,484.17
2.42
2.30%
62.36%
Liauiditv Portfolio
CAMP - JPAP
23,598,039.55
23,598,039.55
1.00
2.48%
24.44%
LAIF Immediate
5,170,412.32
5,170,412.32
1.00
2.43%
5.36%
LAI F Sr. Housing
1,133,460.90
1,133,460.90
1.00
2.43%
1.17%
LAI F - LAWA
61, 374.07
61, 374.07
1.00
2.43%
0.06%
LAIF Subtotal
6,365,247.29
6,365,247.29
1.00
2.43%
6.59%
Total Invested
89,914,139.00
90,172,771.01
1.61
2.35%
93.39%
Trust Acct. Cash
5,828.97
5,828.97
1.00
0.00%
0.01%
Chase Bank- Cash
6,371,453.70
6,371,453.70
1.00
0.45%
6.60%
Total Portfolio
96,291,421.67
96,550,053.68
2.35%
100.00%
Page 1 1
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 Days
3.01 Years
1.62 Years
The interest income received during the period was
Page 12
289
Month
Invested Cost Interest Received % Yield
Apri l
89, 253, 775 124, 736.79 1.68%
May
90, 860, 228 147, 848.14 1.95%
June
89,919,968 171,101.47 2.28%
Avg/Total
*
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
Maximum
Ma)amum City of EI In
Minimum Quality
Investment Type
Maturity
Specified % of Requirements Segundo Compliance
Portfolio 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
Obligations
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
(LAIF)
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 Type: Medium Term Notes, Supranationals, CD's & Commercial Paper - As of: June 30, 2019
City of EI Segundo - Treasury Department
Continuing Education Tracking - As of June 30,2019
Reauirement YTD Hours Excess/(Deficit) Notes
Treasurer
5.00
Ma)amum
MinimumS&P
GIOA 3/19+CMTA 4/19
City of EI
In
29.60
Investment Type
Issuer
% of
Quality
Rating
Segundo
Compliance
MARKET VALUE
Portfolio
Requirements
Investments
Y/N
Medium Term Notes
TOTAL
15%
"A" Ratinq
13.06%
k 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" Rating
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%
"A" Ratinq
A
0.52%
Y
498,505
Medium Term Notes
CATERPILLAR FINANCIAL SVCS
3%
"N'Rating
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" Rating
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" Ratinq
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" Ratina
A+/A-
1.56%
Y
1,504,605
Supranational Obl.
TOTAL
10%
"AAA" Ratinq !
3.10%
Y
2,989,675
Supranational Obl.
IADB-INTER-AMERICAN DEV
3%
"AAA" Rating
AAA
258%
Y
BANK
2,488,270
Supranational Obl.
IBRD -INTERNATIONAL BANK
3%
"AAA" Rating
AAA
0.52%
Y
FOR RECON & DEV
501,405
Municipal Bonds E
TOTAL
10%
"A" Rating
3.02%
Y
2.918,933 1
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
Municipal 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" Rating
AA
0.53%
Y
512,315
Commercial Paper
TOTAL
10%
"A-VA"Rating
0.00%
Y
- 1
Commercial Paper
3%
"A -1/A" Rating
A-1+
0.00%
Y
1
CD'S
TOTAL
30%
I
22.27%
Y
21, 504,160
Joint Powers Auth.
Pool
TOTAL
30%
24.44%
Y
23,598,040
I J PAP
CAMP
30%
24.44%
Y
23, 598,040
City of EI Segundo - Treasury Department
Continuing Education Tracking - As of June 30,2019
Reauirement 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
oC
2.00
d
ae 1.80
1.60
1.40
1.20
1.00
3.50
3.00
2.50
2.00
e
Mr
1.50
1.00
0.50
0.00
Page 14
US Treasury Bonds Yield Curve as of 6/28/19
?.44 --- -
2.40 2.27
y 2.22 * 2-23
1.76
1 MO 3 Mo 6 Mo 1 Yr 2 Yr
-0-3/29/2019 -X6/28/2019
New Investment Yields vs. Treasury Yield Curve
3 Yr 5 Yr
2.69 • 2.76 2.802. • `-5 ' d22$5
• 2.65 !
[� 2-.55 • - • 2.60 2`
_ •
2.40 • Z.�15 i .�5 2�50� ■
_ � c� Z.4S a■O • 2.37 QQ
2.40
• 2.30 �RaS ♦,T ---12
2.27 2.21 2-2z@.OS2.05 2052.23 5
• L% t 2.00 _zo-gg w
o�
185 L95 1.90
�� t _ • • L81
1.92
t
1.75 1.71 1.74 1.76
1 2
3 Duration ♦6/28/2019 3/29/2019 • YTM @ Cost
291
Composite Bond Rates (as of 6/30/19)
US Treasury Bonds Rates
Maturity.
Yield
Yesterdav,
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: httos://www.treasury,aovlresource-centerldata-chart-center/interest-.
rateslPaaeslTextView.asox?data=vieldYear&vear=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
0
(2,000,000)
(4,000,000)
(6,000,000)
(8,000, 000)
(10,000,000)
(12,000,000)
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 Proiections from June Meetinq
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
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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.
Unemplovment
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
1.7-1.8
1.9-2.0
2.0-2.1
March projection
1.9-2.0
2.0-2.1
2.0-2.1
Memo: Projected appro )riate 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
4.1
a]
3.9
3.8
3.7
3.r-
01,18 03/18 05F18 07/18 09/18 11/18 01/19 03/19 05%19 07/19
Month
Source: httD://data.bis.f!ov/cai-bin/survevmost?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 --*--2018 2019
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average Inflation Rates by Year
Source: httK)://www.usinflationcalculator.cam/inflation/current-inflation-rates/
Page 18
295
Retail Trade & Food Services, ex Auto, US Total
2018 —2019
Seasonally Adjusted Sales (Millions of $)
420,000
415,000
410,000
405,000
400,000
395,000 —
390,000 —
385,000
380,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: United States Census Bureau - http://www.census.gov/retail/index.html
Investment Stratem
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 Availabilitv
Par Value
Cash in Bank
$96,321.569.51
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
$25,000,000.00
$20,000,000.00 '
$15,000,000.00
$10,000,000.00
$5,000,000.00
$0.00
Subtotal
84, 773.874.52
Grand Total
$96,321.569.51
Investment Portfolio subtotal
$89.950.115:81
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%
Investments by Maturity Date
I
100.00%
n Par Value
Page 1 11
298
City of EI Segundo
I nvestment Advisory Committee
Investments by Security Type
As of: June 30, 2019
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
Cumulative
Portfolio Investments: CD's
21,504,159.60
Gott Obligations
20,188,804.34
% of Total
% of Total
Item
Availabilitv
Market Value emulative Bafances
Assets
Assets
Cash in Bank
83.85%
3.02%
$83,942,140.95
86.94%
Chase
Immediate
6,371,453.70
13.06%
Union Bank- Trust Account
Immediate
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
L.A.I.F. - LAWA (Restricted) LAIF Immediate
61,374.07
CAMP - JPAP
23,598,039.55
Portfolio Investments: CD's
21,504,159.60
Gott Obligations
20,188,804.34
Municipal Bonds
2,918,932.50
SUPRA's
2,989,675.00
Bonds
12,607,912.73
Subtotal
$85,002,358.69
Grand Total $96,650,053.68
Investment Portfolio subtotal $90,178,599.98
$12,681,155.89
13.13%
1.17%
$12,742,529.96
13.20%
0.06%
$36,340,569.51
37.64%
24.44%
$57,844,729.11
59.91%
22.27%
$78,033,533.45
80.82%
20.91%
$80,952,465.95
83.85%
3.02%
$83,942,140.95
86.94%
3.10%
$96,550,053.68
100.00%
13.06%
100.00%
INVESTMENTS BY SECURITY TYPE
Cash Immediate,
Bonds, $12,607,913_, $6,377,283 LAI F Immediate,
0,412 LAIF. -Senior Housing,
$1,133,461
- LAWA, $61,374
SUPRA's, 2,989,67
Municipal Bonds,
2,918,933
Gov't Obligations,
20,188,804
CD's, $21,504,160
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
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
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 httns://elsegundousd.edliotest.coin/ESUSD%2OLRFMP°/a20 2018-2029 11 05 18.ndf..
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 6:00pm on school days. The remaining 30
spaces will be available for field users from 6:00am until the field closes at 9:00pm. 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
43 4 7 • jPj4V
1. Tenn. This Agreement is for the term of ten (10) years, commencing on sept. 19,
2012, and terminating Sept. 20, 2022 This Agreement may be renewed or extended upon mutual
written agreement of the parties,
2. District's Use of Citv 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. Citv Use of District 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 prog•ains,
events or uses in the scheduling of District Facilities during periods when they are not used for
school purpom.
4. Equipment and Personnel. Each party hereto agrees to conduct and supervise
their respective programs, events and uses on the other party's facilities in conformance with
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 programs 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. Dutv to Rebair. Each party agrees to comply with all existing rules regulating
their respective properties including, without limitation, cleanup after 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 patty, except where such damage may be
attributed to ordinary or reasonable use of such facility, Except as otherwise provided for in this
Agreement, each patty will be responsible for normal operation, maintenance and repair of its
own buildings and facilities. It is understood that both paities have the right in their respective
sole and absolute discretion to make one or more of tliei r 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
4347.:jjn
$. 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. City'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. Hazardous/Toxic 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
widun 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. S- igns. 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.
1 l . Insurance.
A. District's Dutv 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 trust provide that
City will receive thirty (30) days notice of cancellation of said policy.
B. City's Dutv to Insure. City must keep in full force and effect during the
lei -in 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 arnount of Ten Million Dollars ($10,000,000) and a eeiiificatc 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.
306
12. Limitations on Use. 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. Fund' of 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. Successors and Assigns. 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. Emulovees. 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•rj
1$. Entire Aereerrrent. This Agreement 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, Assimment. Neither party may assign this Agreement or any interest herein.
Any such attempted assignment will be void.
20. Notices. Except as otherwise expressly provided by law, all notices or other
communications required or permitted by this Agreement or by law to he served on or given to
either party by the other party will be in writing and will be deemed served wlicn personally
delivered to the party to whom they are directed, or in lieu of the personal service, upon deposit
in the United States Mail, certified or registered mail, return receipt requested, postage prepaid,
addressed to.
District
EI Segundo Unified School District
841 Sheldon Avenue
EI Segundo, CA 90245
Q�
City Clerk
350 Main Street
El Segundo, CA 90245
Either party may change its address for the purpose of this section by giving written
notice of the change to the other party.
21. Acceptance of Facsimile Signatures. 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. Governing Law. 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 Agreeinent will be in Los Angeles County.
23. Partial Invalidity. Should any provision of this Agreement be held by a court 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. Authority/Modification. The parties represent and warrant that all necessary
action has been taken by the parties to authorize the undersigned to execute this Agreement and
0
M
4347 . j,+.id
to engage in the actions described herein. This Agreement may be modified by written
agreement. City's City Manager, or designee, may execute such amendment on behalf of City.
26. Counterparts. This Agreement may be executed in any number or cowtiterpa is,
each of which will be an original, but all of which taken together will constitute osis instrument
executed on the same date. j
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 Carl Jaco6n, Mayor
Approved As To Form: Attest;
District Counsel
7
J l
Ti -
'e 16
ver, yam+
Approved As To Fo)))rm:
Mark Hensley, City Attorn
309
EKH I BIT A
CITY OF -EA, SEGUNDO
IN-KIND"* OTHER CONT OTIONS TO SCHOOL DISTRICT
"Projected" FISCAL'YEAR2012-2013
p6lice DeprbW41,
$ 1-91,9.7.6
SRO
100 ovoitralhuurs of donated f ib6frb*PoliceDdpsirt(feotl><til, prom, oto)
A60
232,9�J0
Police Deparbria-t:Total
Fane Depar+meirr
45 }lours ofdonatodattaigbt time. kom Fire Dept forfoolball:games.
3;320
50 hours of donated straight tithe from Fir:: Prevention
Inspections (Annual Irispeetior>_s, sprinklers, etc)
11980
56FRt Department crmrgoncy responses
100'hoursdonated rimc-fbr Workability Program ipStudent Worker a[ 9ireai)ept
5,445
2' $OS
Fire DeparbnenrTotal
113,11'110
Recreaflon. wtdParks
MiintCnartee, prep ration and utilitles flor Riamond St; 4.9110DI Field
17+700.
Mailucaance, preparation and utilities for RocrtMionPark Stevenson, Field
33,30
Maintcnance,preparation and mWitlea for Recreation Park Softball F[61d
33,- Db
Suppilea for Urho Saari 'Sw[tii Sled ium
1,400
I8; p0
Lifeguards for Urho Saari Swim Stadfufn durfrig,41WSbfiool Athletics
-
Staff for school events atTeen.Center
StlU
$,800
Rental value for Roereation Park Swvsnsou field
Rental value for Reereetion Park Softball Field
3,604
30'§06
Rental value for.Urbo Saari Swim Stadium
-Rental value for:Csrirpus 131 Segundo
12;200
Rental vmlue for.Recreation Paiit.Beiketball &Tennis Courts
4,900
Rental value .for .Teen Center
IL160
Recreation allot Parks 7ooral
]85;700
19 Schoold Board Meotings tot live broadcast, replays, and 2 DVD's per mocong
2,540
Graduations - ESHS, ISMS and Arena
1,400
BHS Indepraldent Study videc Class
7,200.
El Segundo School upoorntingEvet t prMo6on
G00'
ESHS Sports Coverage
4,300
Education Foundation Event Promotion &&vent Coverage:
2,700
Connecta; Plays & Miso:events - &SHS, ESMS, Richmond St., and CDntbr.•St
My'sfuff7'orul
Resreadon and Parks TeW
371V�
2IG;701]'
Public Works
facility.Maintenance for Urho Saari Swim Stadium
10;804
Chemical and -supplies for Urho Saari Swim Stadium
5;500
Utilitics •.gas, water and oleetricityfar Urha Saari Swim Stadium
1g 900
Public Works :Tatal
3,f100
l�brerk-
School Librarury Staff Salaries &:Behifity
205>
School i brory Books & Motorials
Q,500
Shared Onliuc Citalbg Updhtcs slid Maintenance
5 060
215�i70
1brerrTetal
Fuel -arid maintenance of Q0 vehicles 3,000
Totalitt-kind cciatiibutions to School District 718,120
Crossit Gtia�ds u ]tichntond Street, Ceriter Street & 1il Segundo Middle School $0,060
Ciislt.cent6butim 250,000
Gralid.t4talventrib.0196 S 1,048,120
UABudget 12.131CI1y-Wide CoslsllnMrid School District FY 1 2-1 3 012 812 01 28;28 ANI
4 3 4 7' • . a,w ...,.
310
Attach 2 - Richmond Field Layout
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ow
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E EL SEGiI,NDL ARYD
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Size: 30,000 SF s
131 4 k
ESUSD LONG-RANGE FACILITY MASTER PLAN (2018 - 2028)
EI Segundo Unified School District
2018 Amended Long -Range Facility Master Plan
Executive Summary
LEGEND
* FRONT CNTRAN CE
A AD MIN15TRATION
AR ART
C CLASSROOM
CL COMPUTER LAS
K KITCHEN
KO KINDERGARTEN
L L+BRARY
M MUSIC
MPR MULTIPURPOSE
OF OFFICE
PC PORTABLE
CLASSROOM
PE PHYSICAL
EDUCATION
PR PORTABLE
RESTROOM
R RES TRU OM
RL READING LAE
S SCIENCE
SE SPEC I AL EO V CATION
ST STAGE
T TSCHN01,0GY
TK TRAN5.IUNOERGARTEN
DROP OFFIDRIVE
THROUGH LANE
LANDSCAPE
_MAJOR
MODERNIZATION
LIFE CYCLE COSTS
NEW BUILDING
UBE CONVERSION
SOLID SHADE
C7 OEMO 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 SUMMARY '. -.• _ M1
EI Segundo Unified School District
2018 Amended Long -Range Facility Master Plan
Executive Summary
Existing School Site : Level -2 (Multi -Level Site)
LEGEND
*
FRONT ENTRANCp
A
ADMINISTRATION
AR
ART
C
CLASSROOM
CL
COMPUTER LAS
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
MODERNIZATION
LIFE CYCLE COSTS
NEW BUILDING
I� USE CONVERSION
SOLID SHADE
CDEMO BUILDING
I
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.
rs 4 7.75
■3� 314
ESUSD LONG-RANGE FACILITY MASTER PLAN (2018 - 2028)
EI Segundo Unified School District
43 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.)
w
t7
1,:
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
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 maiorto 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 Connedion diagram depicted
detailed site surve /site investigation, DSA and otherA enc requirements. thepaaiecunanuyproceedsrecein progress 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 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 OFFIDRIVE
THROUGH LANE
LANDSCAPE
_MAJOR
MODERNIZATION
LIFE CYCLE COSTS
NEW BUILDING
I�
USE CONVERSION
SOLID SHADE
C_1 DEMO BUILDING
PWA 1.77
1 316
ESUSD LONG-RANGE FACILITY MASTER PLAN (2018 - 2028)
0AW EI Segundo Unified School District
2018 Amended Long -Range Facility Master Plan
® Executive Summary
SchoolSite 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 priority.
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'agramdepiaedon
detailed site surve/siteinvesti ation,DSAandotherA enc requirements. Ihepeniscrnrentleiroceesrecen progress 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
* FRO NT ENT RAN CE
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 RE6TR00M
RL READING LAS
S SCIENCE
SESPECIAL EDUCATION
ST STAGE
T TECHNOLOGY
TK TRANS -KINDERGARTEN
DROP OFF/DRIVE
THROUGH LANE
LANDSCAPE
MMAJOR
MODl RNIZATION
LIFE CYCLE COSTS
NEW BUILDING
USECONVERSION
SOLID SHADE
CDEMO BUILDING
1•78 NOVEMBER 1, 2018
317
F,
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 Llfe-Cyols Cost Estimate (includes 16%Soft Costs) $23,000 $363,630
Totals for each priority are estimated for projected lifecycle repairs and replacements. These are not included in
New Safe and Welcoming Front Entry and Administration Modernization /Expansion (Including
$ 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
5 624,000
Now 2-StDry Classroom Addition (8,000 SF) (Including six (6) flexible classroormillabs, restrooms,
$ 4,600,000
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)
$ 338,000
New Connector Corridor Conversion (Includes corridor, teacherworkroom, 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
a tatio n, o1c.)
TOTAL New tonstruction I MajorModemcation Campus Improvements (Includes 30% Soft
$ 1,028,600 $ 6,213,000 $
Costs)
Path of7ravelAllouenceperPdorityPhase/RequiredCode Related Upgrades (Estimaled20%
$ 246,700 $ 1,042,600 $
Allocation)
IGRANOTOTAL
S 1,474,200 $ 6,255,608 $
All CostAllovencesrEstimales Refect Forecasted January 2019 Dollars//Construction Cost+Project Soft Costs//Costs are subject to change based
on marketeonditions, and when projects are actually bid and executed by the District.
"So0 Costs: ArE fees, misc. oermittinalestino fees. conbactoroverheadbrofif. oroiect oontin0encv. etc.
$2,873,764 $1969,341
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.
5 218,400
S 196,000
f MAW
5 466,000
$629,030
$ 1,173,900 $ 7,816,400
S 234,780 $ 1,623,080
$ 1,408,660
Pe{ 1.79
318
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%�'drsin
DISCUSSION:
Proposed FY 2019-20 Citywide Operating and Capital Improvement Prop -ram (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 Ont i o li s
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
I UUT Gas/Cogeneration
2 UUT Electric
3 UUT Water
4 UUT Telecommunication
5 UUT pre -paid wireless
Current rate on Commercial Accounts only
3%
3%
3%
2%
1.5%
Revenue Enhancement from UUT collections may be accomplished by:
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
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
UUT OPTIONS
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
City
Alhambra
f Arcadia
Baldwin Park
f Bell
BeIlFlower
Burbank
Calabasas
Carson
Claremont
Compton
Covina
Cudahy
Culver City
Downey
EI Monte
ElSepundo
Gardena
Glendale
Hawthorne
Hermosa Beach
Huntington Park
f Inglewood
Irwindale
La Verne
Lakewood
Lawndale
UUT Information Summary Listing - Cities in Los Angeles County
Intrastate Interstate
Infl Wireless PrivateCom."
Video
Electric Gas
Water Sewer Trash
5.00% R&N 5.00% R&N
5 00% R&N
5R&N
5.00% N 5.00% N
5.00% N
5.00% f
5.00%
5.00%
5.00%
5.00% 5.00%
5.00% 5.00%
7.00% 7.00%
7.00% 1
3.00% 3.00%
3.00%
3.00%
3.00% I 3.00%
3.00%
Long Beach
Los Angeles
Lynwood
Malibu
Maywood
Monterey Park
Norwalk
Paramount
Pasadena
Pico Rivera
Pomona
Rancho Palos Verdes
Redondo Beach
San Marino
San Gabriel
Santa Fe Springs
Santa Monica
Sierra Madre
South Pasadena
1 Torrance
Vernon
Whittier
i
County of Los Angeles
10.00%
l
10.00%
10.00%
10.00%
10.00%
5.00%
5.00%
5.00% f
5.00%
5.00%
5.00%
5.00%
7.00%
7.00%
7.00% (
7.00%
7.00%
7.00% f
7.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
2.00%
2.00%
1
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50% .
5.50%
8.50%
8.50%
8.50%
8.50%
8.50%
10.00%
10.00%-..-10.00%
6.00%
6.00%
6.00%
6.00%
6.00%
6.00%
3.75% R
3.75% R
3.75% R
3.75% R
3.75% R
4.00% R
4.00% R
4.00% R
4.00% R
8 00% N
8.00% N
8.00% N
8.00% N
8.00% N
8.00% N
8.00% N
8.00% N
8.00%-N
11.00%
11.00%
11.00% __11.00%
11.00%
11.00%
11.00%
11.00%
11.00%
4.80%
4.80%
4.80%
4.80%
4.80%
5.00%
5.00%
6.50%
6.50%
6.50%
6.50%
6.50%
7.00%
7.00%
2.00% N
2.00% N
2.00% N
2.00% N
2.00% N
3.00% N
3.00% N
3.00% N
5.00%
5.00%
5.00%
5.00%
5.00%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
7.00%
7.00%
7.00%
t
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
6.00%
6.00%
6.00%
9.25%
9.25%
9.25%
9.25%
9.25%
9.75%
9.75%
9.75%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00%
10.00%
10.00%
10.00%
7.50%
7.50%
7.50% f
7.50%
7.50%
7.50%
7.50% 17.50%
7.50%
5.75%
5.75%
5.75%
5.75%
5.75%
6.00%
6.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.00%
5.00%
5.00%
5.00%
5.00%
500%
5.00%
5.00%
9.00%
9.00%
9.00%
9.00%
9.00%
10.00%
10.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
4.50%
4.50%
4.50%
4.50%
450%
5.00%
5.00%
l
4.00% R
4.00% R
4.00% R
4.00% R
4 00% R
4.00% R
4.00% R f
4.00% R
7.00% N
7.00% N
7.00% N
7.00% N
7.00% N
7.00% N
7.00% N
7.00% N
3.00% R
3.00% R
3.00% R
3.00% R
3.00% R
5.50% N
5.50% N
5.50% N
5.50% N
5.50% N
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
1
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
-
-
8.28%
8.28%
8.28%
8.28%
8.28%
9.40%
7.67%
7.90%
7.67%
4.50%
4.50%
4.50%
4.50%
4.50%
4.50%
4.50%
4.50%
9.00%
9.00%
9.00% .
9.00%
9.00%
9.00%
9.00%
9.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
8.00%
8.00%
8.00%
8.00%
8.00%
8.00% 1
8.00%
8.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
_ 10.00% 110.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00% I
10.00%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.50%
6.00%
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
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
4.50%
4.50%
4.50% 1
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
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:
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
F $7872 9 I $34,569 I $317 17-18 FY 3 64 � 17 $215-16
,� � I F$ 14-15 I F$ 138-84
324
Maximum Exposure
Total Sales Tax Credit
(40% 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:
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
F $7872 9 I $34,569 I $317 17-18 FY 3 64 � 17 $215-16
,� � I F$ 14-15 I F$ 138-84
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
(1%)
f $ 11,500,000
PARKING TAX
Estimated New Revenue
Upon Enacting Measure C
(0.75%)
$8,625,000
Estimated Total Sales Tax
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://en.lcparkopedia.com/pa.rking/el—segundo
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
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10 1
I$in¢le Family 2,540
$ 50.800
$ 53.340
$ 55,880
$ 58,420
$ 60,960
$ 63.500
$ 66.040
$
68,580
$ 71.120 $
73,6601
Multifamily 1,373
$ 54,920
$ 56,293
$ 57,666
$ 59,039
$ 60,412
$ 61,785
$ 63,158,
$
64,531
$ 65,904 $
67,2771
Commercial 1,153
$ 57,650
$ 58,803
$ 59.956
$ 61.109
$ 62,262
$ 63.415
$ 64,568
$
65,721
$ 66.874 $
68.027 1
Estimated New
Revenue
S 163.370
S 168.436
S 173.502
S 178,568
$ 183,634
S 188,700
$ 193,766
S
198,831
S 203.898 S
208964
SUMMARY OF MINIMUN POSSIBLE ADDITIONAL REVENUE:
Revenue Source
1 Sales Tax (Measure C) — Additional 0.75%
2 Utility User Tax (UUT) Additional 1%
3 Parking Tax —10%
4 Business Tax — Sales Tax Credit
Elimination
5 Business Tax Change to Base Rate
6 Parcel Tax
c
Minimum Additional Estimated Revenue
$ 8,625,000
2,428,000
1,770,000
1,400,000
350,0001
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
City of EI Segundo
Three -Year Capital Improvement Program (CIP) FY 2020-22
Water Enterprise Fund
1 Water Infrastructure Replacement (Annual Program)
2 Indiana Street Water Main Replacement
3 Grand Ave. Water Main Replacement
4 Water Valve Replacements
Wastewater (Sewer) Enterprise Fund
5 Wastewater Infrastructure Replacement (Annual Program)
6 Lifeguard Pump Station Construction
7alAcacia Park Construction
Gas Tax/ Prop C / SB 1/ Measure R/ Measure M
8 Roadway Rehabilitation (Annual Program)
9 EI Segundo Blvd. Improvements
10 Sidewalk Improvement and Construction (Annual Program)
Other Grant or Special Funds
11 Police Firing Range Remodel - Asset Forfeiture (CIPAC Rank: #3)
7blAcacia Park Construction - Prop 68 Grant - (CIPAC Rank: #2)
12 FCA - Park Vista Senior Housing Plumbing** - Housing Funds
13 ADA Ramp Improvements - CDBG Funds
General Fund
7clAcacia Park Construction (CIPAC Rank: #2)
14 City Hall Security/Improvements****
15 Facility Program Reserve****
16 Richmond Field Renovation with ADA Accessibility
17 Community Cameras & Fixed License Plate Readers
18 Fiber Vault Lids Replacements****
19 800 Block McCarthy Court Street Improvement
20 Washington Park Playground Replacement *
21 500 Block E. Walnut Ave. Drainage Improvement
22 Access Control System -Facility Security for Police and Fire *
Teen Center Upgrades Including Skate Park and Basketball Court
23 (CIPAC Rank: #6) ****
24 Hockey Rink Rehabilitation
25 Main and Imperial Entryway Beautification Project
26 California Street Storm Drain Improvement *
27 Library Park Outdoor Seating / Activation (CIPAC Rank: #7)****
28 Fitness Trail at Memory Row (CIPAC Rank: #4)****
29 The Plunge Replacement Scope Assessment *
30 Catch Basin Inserts Installations
31 Rec Park Softball Field Bleacher Replacement *
32 FCA -Miscellaneous Improvement Projects (City Staff)*
33 FCA - Clubhouse HVAC Ductwork*
34 FCA - Library South Wall Waterproofing and Repair *
35 FCA - Various Masonry Walls and Floor Rehabilitiations*
36 Plunge Rehabilitation Funding (CIPAC Rank: #1)
37 Park Place Gap Closure and Grade Separation Project (Design)
38 Stevenson Field Fence Replacement (CIPAC Rank: #5)
39 Library Elevator Renovation
40 Water Plant - Office Roof Replacement
41 City Hall Rooftop Duct and Interior Ductworks
42 FS #2 Flooring Replacement
43 PW Yard NE Storage Roof Replacement and Masonry Wall Repairs
44 Racquetball Court Flooring
45 Miscellaneous Improvement Projects (City staff)
46 FS #1 Gym Interior Paint and Exterior Door Replacement
47 Library Reseal Exterior Windows
48 Camp Eucalyptus Anti -Erosion Sod and Landscaping
49 FS #1 Water Heater Replacement
50 Annual Scheduled Projects for the Facility Condition Assessment
51 Pump Station #17 Pump Replacement
TOTAL CIP I $
NOTES:
* - Carryover Project from FY18/19
**With Senior Housing Funds (Fund 504)
***28 FCA - Rec Park Basketball Court Replacement : $50,000. The court was
repaired this summer. The replacement project to be re-evaluated as a future
project in 3 years
**** new appropriation for FY 2019-20
FCA = Facilities Condition Assessment Program Project
CIPAC Ranking: Priority as ranked by Capital Improvement Program
Advisory Committee
700,000
650,000
200,000
700,000
500,000
300,000
250,000
200,000
60,000
50,000
1,150,000
1,000,000
750,000
470,000
375,000
300,000
275,000
270,000
265,000
200,000
200,000
155,000
150,000
150,000
120,000
100,000
100,000
100,000
70,000
65,000
55,000
50,000
30,000
10,010,000 I $
1,200,000
300,000
150,000
500,000
7,500,000
250,000
630,000
50,000
300,000
1,000,000
1,000,000
300,000
270,000
125,000
55,000
40,000
30,000
25,000
20,000
20,000
15,000
15,000
13,000
12,000
8/15/2019
$ 2,000,000
300,000
500,000
I
500,000
250,000
I
640,000
50,000
14,420,000 I $
1,500,000
300,000
1,000,000
800,000
8,200,000
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 Two Janice Merva 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 Partial Term Expires June 30, 2021
15
328
EL SEGUNDO CITY COUNCIL
AGENDA ITEM STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: August 20, 2019
AGENDA HEADING: New Business
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
CITY OF DANA POINT
� 4� ��:.� CITY COUNCIL
-*- Joseph L. Muller
Mayor
June 20, 2019 Paul N Wyatt
Mayor Pro Tem
The Honorable Ben Allen Jamey M. Federico
California State Senate Debra Lewis
State Capitol Building, Room 4076 Richard A. Viczorek
Sacramento, CA 95814
RE: Senate Bill 54 (Allen) California Circular Economv and Plastic Pollution Reduction Act
Notice of SUPPORT
Dear Senator Allen:
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: citvletters(@cacities.org)
331
.fit
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
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Taxt Votea Hiatory `BIII Rnalysls I.V. Law As Amended O Compare Versions Statna C' menta Ta Author
SHARE THIS: 1 -` Date Published: 08114/201909:00 PM
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 O7, 2019
AMENDED IN SENATE FEBRUARY 25, 2019
CALIFORNIA LEGISLATURE— 2019-2D2C REGULAR SESSION
Introduced by Senators Allen, Skinner, Stern, and Wiener
(Principal coauthors : Assembly Members Friedman and Gonzalez)
(Coauthor: Senator Wieckowski)
(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.
NO. 54
LEGI.SLATIl COUNSEL'S DIGEST v
Link to Senate Bill No. 54
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AB -1080 California Circular Economy and Plastic Pollution Reduction Act. (2019-2020)
Tett I Votes I History I�`&II Analysts Today's Law As Amended 0 I Compare versions I Status I Comments To Author
A SHARE THIS: 0 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— 20182020 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, Kai ra, Kamlager-Dove, McCarty, Luz Rivas, and Wicks)
Link to Assembly Bill No. 1080
333
8/15/2019
Bill Text - SB -54 California Circular Economy and Plastic Pollution Reduction Act.
LEGISLATIVE INFORMATION
Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites
SB -54 California Circular Economy and Plastic Pollution Reduction Act. (2019-2020)
SHARE THIS:
SENATE BILL
Date Published: 08/14/2019 09:00 PM
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 07, 2019
AMENDED IN SENATE FEBRUARY 25, 2019
CALIFORNIA LEGISLATURE— 2019-2020 REGULAR SESSION
NO. 54
Introduced by Senators Allen, Skinner, Stern, and Wiener
(Principal coauthors: Assembly Members Friedman and Gonzalez)
(Coauthor: Senator Wieckowski)
(Coauthors: Assembly Members Boerner Horvath, Carrillo, Kalra, Kamlager-Dove, and
McCarty)
December 11, 2018
An act to add Chapter 3 (commencing with Section 42040) to Part 3 of Division 30 of the Public
I Resources Code, relating to solid waste.
LEGISLATIVE COUNSEL'S DIGEST
SB 54, as amended, Allen. California Circular Economy and Plastic Pollution Reduction Act.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources
Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste, including,
among other solid waste, single -use plastic straws.
The Sustainable Packaging for the State of California Act of 2018 prohibits a food service facility located in a
state-owned facility, operating on or acting as a concessionaire on state property, or under contract to provide
food service to a state agency from dispensing prepared food using a type of food service packaging unless the
type of food service packaging is on a list that the department publishes and maintains on its internet website
that contains types of approved food service packaging that are reusable recyclable, or com ostable.
leginfo.legislature.ca.gov/faces/bilINavCIient.xhtml?bill id=201920200SB54 1113
8/15/2019 Bill Text - SB -54 California Circular Economy and Plastic Pollution Reduction Act.
Existing law makes a legislative declaration that it is the policy goal of the state that not less than 75% of solid
waste generated be source reduced, recycled, or composted by 2020.
This bill would enact the California Circular Economy and Plastic Pollution Reduction Act, which would require the
department, before January 1, 2024, to adopt regulations that require eeveFed ,..brie , producers, as defined,
(1) to source reduce, to the maximum extent feasible, single -use packaging and priority single -use plastic
products, as defined, and (2) to ensure that -4y--.1-939 all single -use packaging and priority single -use plastic
products manufactured on or after January 1, 2030, and offered for sale, sold, distributed, or imported in or into
the California market are recyclable or Tys b!! ieva' r"airf \`rsc& compostable, and
(3) to_tee collectively achieve and maintain, by January 1, 2030, a statewide 75% reduction of the waste
generated from single -use packaging, and a statewide 75% reduction of the waste generated from priority
single -use plastic products, offered for zdc c, :;r -Id sale, sold, distributed, or imported in or into the state
through source reduction, recycling, or c rr rrJtry, Grd-weJr c3tab,:A a yo[1 to Bch; c, by 2030, G
7•."91. rceuctlu f/ the Y.mk-c §-_ncre-tte Fmrr. EM rtl;cr 3;rgle prc&-cts Ufa ; `cr oer :i sr1e ;r t!!t 3W -e
t h Lvwcc mcyclirS, ar composting. The bill would authorize the department to determine which
actions producers may undertake to achieve those requirements. The bill would require EeveFed ent
producers to annually report specified information to the department. The bill would require the department, by
January 1, 2023, and before adopting the regulations, to develep finalize a scoping plan, as specified.
The bill would require the department to develop criteria to determine which types of single -use packaging or
priority single -use plastic products are reusable, recyclable, or compostable. The bill wouldFegeire authorize
local governments, solid waste facilities, recycling facilities, and composting facilities to provide information
requested by the department for purposes of developing that criteria. l-dtr;l]M Mr. !GaM1,
gv;crr, l�rlls,
the '0111 W&r 44J 4-601;ac o tease• Mta".;Xj kcal P-Oyfaff--
The bill would require a cat•crcd crl-it),-o ok_".. ti.a r*cyclIng rvtc :t r,ak Ic3,3 trar. 20 %,' u. -%r. e! rft" 3z -..Liz
i, 2421, -..Ot I;Z:;, 1haM 4016 OM1 Nee, 4 I, 2,720, and not, 1;ax thar. 71'.% en &r,4 after34ruz�"/ 1, 203
of single • se { res- single -use plastic
:�15 -. �._ -• -• _ _ _-- � _--•- �ilz:e;ig�r.r� oT 'pno^rrt:y 71F1 IC-Ll7c IGjI:IC 17 +
packaging, single -use poly lined paper packaging, and single -use poly lined paperboard packaging and priority
single -use plastic products offered for sale, sold, distributed, or imported in or into California by a producer to
meet specified recycling rates that are based on date of manufacture and that increase over a prescribed
timeframe, and would authorize the department to impose a higher recycling Fate as a _,...hien of sale, rate, as
specified. The bill would require the department to create, update, and post on its internet website a list of
recycling mlc:; :i aa: /1.ren•rIrr.`I a'� , yd fir. is-o/ty virglc Not. fly*& preduets, rates, as specified.
The bill would require the department to report to the Legislature every 2 years its progress in implementing the
bill's provisions.
The Callen;& Cu.X?,uUan mr{a'rrea tF-c tate to rc:m:burse Iccf a3crecic3 crd aced. e".3teo:, irrr ce ais fw,:;
f9.dat:ed by -the -state. «c._`_ --- :Mimi cu'aV4h praeed....__ f_.. _.-_,.:_g tl-a: mm-bbFseFnent.
TWA 40 a "Hil rr0N'vi! :hat, V thQ C3FAV19i :Misr 31 Ct::M M'SMA X eeteFm nca U z-(• th4 6;11--eaFita n,
„rr; cd , : ie ^tat: , , �fr�t✓a�1-dr,: fcr tl:; x coot; 31,41 '_%c tc the 3tV1.Vk:rif �r r�`.ir,► -tai
abeve.
The bill would provide for exceptions to, and enforcement of, its provisions, including authorizing the department
to impose an administrative civil penalty in an amount not to exceed $50,000 per day on a producer that is not
in compliance with the bill's requirements.
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yesno
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 3 (commencing with Section 42040) is added to Part 3 of Division 30 of the Public
Resources Code, to read:
CHAPTER 3. California Circular Economy and Plastic Pollution Reduction Act
42040. This chapter shall be known, and may be cited, as the California Circular Economy and Plastic Pollution
Reduction Act.
42041. (a) The Legislature finds and declares all of the following:
Ieginfo.legislature.ca.gov/faces/biIINavClient.xhtml?bill id=201920200SB54 2/13
8/15/2019 Bill Text - SB -54 California Circular Economy and Plastic Pollution Reduction Act.
fft3
(1) Annual global production of plastic has reached 335 million tons and continues to rise. The United States
alone discards 30 million tons each year. Global plastic production is projdcted to more than triple by 2050,
accounting for 20 percent of all fossil fuel consumption.
(2) Without action, projections estimate that by 2050 the mass of plastic pollution in the ocean will exceed the
mass of fish. A study by the University of Exeter and Plymouth Marine Laboratory in the United Kingdom found
plastics in the gut of every single sea turtle examined and in 90 percent of seabirds. Additionally, plastic
negatively affects marine ecosystems and wildlife, as demonstrated by countless seabirds, turtles, and marine
mammals, including, but not limited to, whales and dolphins, dying from plastic ingestion or entanglement.
fes}
(3) Based on data from the United States Environmental Protection Agency, Institute of Scrap Recycling
Industries trade statistics, and industry news source Resource Recycling, the national recycling rate for plastic is
projected to sink from 9.1 percent in 2015 to 4.4 percent in 2018, and could drop to 2.9 percent in 2019. Even
in California, less than 15 percent of single -use plastic is recycled.
ELI
(4) Before 2017, the United States was sending 4,000 shipping containers a day full of American waste to China
every year, including two-thirds of California's recyclable materials. However, China has implemented the Green
Fence, National Sword, and Blue Sky policies, severely restricting the amount of contaminated and poorly sorted
plastics it would accept. This shift in China's policy has resulted in the loss of markets for low -value plastic
packaging that was previously considered recyclable. That material is now being landfilled or burned.
(5) Additionally, the foreign market for recycled paper has collapsed in California. Foreign exports of mixed paper
fell from over 400,000 tons in the first quarter of 2017 to just 136,000 tons in the first quarter of 2018. The
price of mixed paper fell from ninety-five dollars ($95) per ton to just ten dollars ($10) a ton in the same
timeframe.
"0
(6) The loss of markets for recyclable material has added huge costs to local governments for the disposal and
diversion of material. For many cities, counties, and waste haulers in California, recycling has turned from a
profitable business into an activity that actually costs local governments money. These costs are being absorbed
by city general funds or by rate increases on residents for waste collection.
fes)
(7) The environmental and public health impacts of plastic pollution are devastating and the environmental
externalities and public costs of cleaning up and mitigating plastic pollution are already staggering and continue
to grow.
fhi
(8) Local governments in California annually spend in excess of four hundred twenty million dollars
($420,000,000) in ongoing efforts to clean up and prevent plastic and other litter from entering our rivers and
streams and polluting our beaches and oceans.
ED
(9) Evidence now shows that even our own food and drinking water sources are contaminated with plastic.
Microplastics have been found in tap water, bottled water, table salt, and fish and shellfish from local California
fish markets. A growing body of research is finding plastic and associated toxins throughout the food web,
including in our blood, feces, and tissues. Exposure to these toxins has been linked to cancers, birth defects,
impaired immunity, endocrine disruption, and other ailments.
Pii
leginfo.legislature.ca.gov/faces/bilINavClient.xhtml?bill.. id=201920200SB54 3/13
8/15/2019 Bill Text - SB -54 California Circular Economy and Plastic Pollution Reduction Act.
(10) It is the policy goal of the state that not less than 75 percent of solid waste generated be source reduced,
recycled, or composted by the year 2020. However, as of 2017, the state was only on track to reach 44 percent,
falling far short of this important goal. Additionally, the state has done little to require businesses to reduce the
amount of packaging and single -use product waste they generate in California.
M
(11) As the fifth largest economy in the world, California has a responsibility to lead on solutions to the growing
plastic pollution crisis, and to lead in the reduction of unnecessary waste generally.
viii
(12) Further, businesses selling products into California have a responsibility to ensure that their packaging and
products are minimizing waste, including ensuring materials used are reusable, recyclable, or compostable. This
responsibility includes paying for the cost of the negative externality of recovery for materials they sell in
California.
(b) (1) Consistent with the policy goal established in Section 41780. 01, it is the intent of the Legislature that, by
2030, producers of single -use products that are not priority single -use plastic products collectively achieve and
maintain a statewide 75 -percent reduction of the waste generated from single -use products offered for sale,
sold, distributed, or imported in or into the state that are not priority single -use plastic products through source
reduction, recycling, or composting.
(2) In accordance with paragraph (1), it is the intent of the Legislature that producers of single -use products that
are not priority single -use plastic products do all of the following for single -use products that are not priority
single -use plastic products:
(A) Source reduce those products, and transition those products to reusable products, to the maximum extent
feasible.
(B) Ensure those products are recyclable or compostable, as determined by the department pursuant to Section
42044.
i
(C) For single -use plastic products that are not priority single -use plastic products and that are offered for sale,
sold, distributed, or imported in or into California, reduce waste generation by 75 percent through combined
source reduction and recycling.
42042. (a) For purposes of this chapter, all of the following shall apply:
(1) "Packaging" means the material used for the containment, protection, handling, delivery, or presentation of
goods by the producer for the user or consumer, ranging from raw materials to processed goods. Packaging
includes, but is not limited to, all of the following:
(A) Sales packaging or primary packaging.
(B) Grouped packaging or secondary packaging.
(C) Transport packaging or tertiary packaging.
(2) "Poly" includes polyethylene terephthalate (PET) and polypropylene.
(3) "Priority single -use plastic products" means the 10 single -use plastic products, or categories of those
products, that are the most littered in California, as determined by the department. The department may
reference relevant data, including, but not limited to, either of the following, when making this determination:
(A) Beach cleanup surveys.
(B) Factors relating to total maximum daily load or stormwater discharge requirements.
(4) (A) "Producer" means the person or company in the state that manufactures and offers for sale, sells, or
distributes the single -use packaging or priority single -use plastic product in the state under that person or
company's own name or brand.
(B) If subparagraph (A) does not apply, the producer is the person or company in the state that imports the
single -use packaging or priority single -use plastic product as the owner or licensee of a trademark or brand
leginfo.legislature.ca.gov/faces/bilINavClient.xhtml?bill_id=201920200SB54 4113
8/15/2019 Bill Text - SB -54 California Circular Economy and Plastic Pollution Reduction Act.
under which the single -use packaging or priority single -use plastic product is offered for sale, sold, or distributed
in the state.
(C) If neither subparagraph (A) nor (e) apply, the producer is the person or company that offers for sale, sells,
or distributes the single -use packaging or priority single -use plastic product in the state.
(5) "Recycling rate" means the percentage, as measured by weight, volume, or number of units, of the material
used in single -use plastic packaging, single -use poly lined paper packaging, or single -use poly lined paperboard
packaging or priority single -use plastic products that are offered for sale, sold, distributed, or imported in or into
the state that is recycled over a three-year rolling period, as determined by the department. Recycling rate shall
be measured by the material type and form, such as a thermoformed or molded container of a particular resin
type as specified in Section 18015.
(6) (A) "Single -use packaging" means the packaging of a product when the packaging is routinely disposed of
after its contents have been used or unpackaged, and typically not refilled.
(8) Single -use packaging does not include either of the following:
(i) Packaging that is durable or washable, and routinely used for its original purpose multiple times before
disposal.
(ii) Packaging containing toxic or hazardous products regulated by the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. Sec. 136 et seq.).
(7) "Source reduction" includes, but is not limited to, transitioning single -use packaging to refillable or reusable
packaging. Source reduction does not include replacing a recyclable or compostable material with a
nonrecyclable or noncompostable material or a material that is less likely to be recycled or composted, and does
not include a shift to plastic material.
(b) For purposes of this chapter, medical devices, medical products, prescription drugs, and the packaging used
for these products, that require approval from the United States Food and Drug Administration, and drugs that
are used for animal medicines, including, but not limited to, parasiticide products for animals, and the packaging
used for these products, shall not be considered single -use packaging or priority single -use plastic products.
42042 42043. (a) Before January 1, 2024, the department shall, in consultation with all relevant state agencies
with jurisdiction z-.-zr ■axr►" Z V wrist i►. Ulifirrii, relevant to this chapter and local jurisdictions and regional
agencies charged with meeting waste diversion goals, adopt regulations that do all of the following:
(1) (A) Requirt 37;3r3d crAM13s producers of single -use packaging to source reduce single -use packaging to the
maximum extent feasible.
(B) Requira tr izi-V_ sr* ix producers of single -use packaging to ensure that -by -2438 all single -use packaging
manufactured on or after January 1, 2030, and offered for sale, sold, distributed, or imported in or into the
California market is recyclable or compostable as determined by the department pursuant to Section 42044.
(2) (A) Require eeveFed ""thee producers of priority single -use plastic products to source reduce priority single -
use plastic products to the maximum extent feasible.
(B) RequireeeveT✓' cn:itiad producers of priority single -use plastic products to ensure that 5`i 2WV priority
single -use plastic products manufactured on or after January 1, 2030, and offered for sale, sold, distributed, or
imported in or into the California market are recyclable or compostable as determined by the department
pursuant to Section 42044.
(3) AeHieve, Require producers to collectively achieve and maintain, by January 1, 2030, a statewide 75 -percent
reduction of the waste generated from single -use packaging, and a statewide 75 -percent reduction of the waste
generated from priority single -use plastic products, offered for nal:: v WA sale, sold, distributed, or imported in
or into the state through source reduction, recycling, or composting.
(b) (1) Befefe By January 1, 2023, and before adopting the regulations, the department shall develep finalize a
scoping plan for meeting the requirements of this section.
(2) As part of the scoping plan, the department shalleenduet do all of the following:
(A) Conduct extensive outreach to s`,'elde,T stakeholders and to state and local agencies with jurisdiction
relevant to this chapter. This outreach shall include, but is not limited to,
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(A)Genveniprg convening a series of public workshops throughout the state to give interested parties an
opportunity tofarm,"_,s'it.
ming comment and a series of stakeholder meetings designed to facilitate dialogue between
stakeholders representing different interest groups such as local governments, the solid waste and recycling
industries, product and packaging manufacturers, retailers, trade associations, and environmental organizations.
These meetings shall be held throughout the state to increase the opportunity for participation and shall inform
the development of regulations pursuant to this section.
(J)Aa pant a` plar•, titiz &_P3rN7'-_r.t :A�_ll zvok.;-It
(8) Evaluate the feasibility of employing the following regulatory measures:
(i) Developing incentives and policies to maximize and encourage in-state manufacturing using recycled material
generated in California.
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(/i) Developing economic mechanisms to reduce the distribution of single -use packaging and priority single -use
plastic proejot�.. products or to transition single -use packaging and priority single -use plastic products to
recyclable or compostable alternatives. These economic mechanisms may include, but are not limited to,
allowing producers to establish and operate a collection and deposit program, assess a generation -based fee, or
assess an advanced recycling fee.
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(iii) Discouraging, to the extent feasible, the litter, export, or improper disposal of single -use packaging, priority
single -use plastic products, and other materials likely to harm the environment or public health in California or
elsewhere in the world.
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(iv) Establishing labeling requirements regarding theor ■irioa4rJzility recyclability, compostability,
or reusability of single -use packaging and priority single -use plastic products. Labeling may reflect whether the
packaging or product can be readily Feeyeled er eempested recycled, composted, or reused and whether the
packaging or product is likely to contaminate other recyclable or compostable material or complicate processing.
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(v) Adopting model best practices for eevefed a,ntiti:r producers to reduce packaging waste, including through
the creation of effective and convenient take -back opportunities, deposit systems, reusable and refillable delivery
systems, designing for recyclability, or similar mechanisms.
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(vi) Adopting actions identified through the California Ocean Litter Prevention Strategy and the Statewide
Microplastics Strategy.
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(vii) Establishing an extended producer responsibilityPFegram program, where appropriate, to required
entities producers to contribute to the costs associated with processing the single -use packaging and priority
single -use plastic products they produce.
f}3
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(viii) Establishing criteria for the source reduction requirements specified in subdivision (a), including reducing
weight, volume, or quantity of single -use packaging and priority single -use plastic product material in a way that
does not decrease the ability of the material to be recycled or reused.
(ix) Establishing minimum postconsumer recycled contents requirements, where appropriate, for
single -use packaging and priority single -use plastic products.
(C) Identify all of the following:
(i) Opportunities to improve and expand waste collection and processing capabilities and infrastructure, including
the use of innovative new recycling technologies and secondary material recovery facilities.
(ii) Opportunities to harmonize local waste, recycling, and composting programs among local jurisdictions and
barriers to cooperation and standardization of programs.
(iii) Opportunities for encouraging the use of reusable or refillable packaging.
(iv) Opportunities for public education efforts to increase recycling and composting of single -use packaging and
priority single -use plastic products and reducing litter from these items.
(v) Potential end-use markets for collected materials and policies required to stimulate domestic markets.
(c) (1) The department may identify single -use packaging or priority single -use plastic products that, while
determined to be single use for purposes of this chapter, present unique challenges in complying with this
chapter.
(2) For any packaging or products identified as presenting these unique challenges, the department shall may
develop a plan to phase the packaging or products into the regulations.
(3) The department shall ensure that any regulations adopted pursuant to this chapter account for guidelines
issued by the United States Food and Drug Administration. If the department determines a type of single -use
packaging or priority single -use plastic product cannot comply with this chapter due to health and safety
reasons, or because it is unsanitary or unsafe to recycle, the department may exempt that packaging or product
from this chapter.
(d) The regulations shall include a mechanism for accounting for the total statewide generation of single -use
packaging and priority single -use plastic products in order to set a baseline amount for waste generation from
these sources.
(e) (1) The department shall require a eeveFed entity producer to annually report all of the following information
to the department for the eeveFed enti " producer's single -use packaging and priority single -use plastic
products:
(A) The quantity, weight, volume, and type of single -use packaging and priority single -use plastic product
materials sell .._ this``""`"' offered for sale, sold, distributed, or imported in or into California by therzePa=ed
entity producer annually.
(B) The quantity, weight, volume, and type of material source reduced by the _avered entity producer annually.
(C) Any other data the department deems necessary to establish a baseline for waste generation and subsequent
source reduction by a producer.
(2) Any market sensitive data received by the department pursuant to this subdivision shall be held
confidentially by the department to the extent required by existing law.
(3) The department shall create an online registration form to facilitate submitting reports pursuant to this
subdivision.
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(4) Producers shall submit the information required by the department pursuant to paragraph (1) using the
format established by the department pursuant to paragraph (3).
(5) To receive this reporting data in a timely manner to inform the regulations adopted pursuant to this chapter,
the department may adopt emergency regulations to implement the requirements of this subdivision.
(f) (1) The regulations shall include direct source reductions of single -use packaging and priority single -use
plastic products to the maximum extent feasible, in accordance with subdivision : (a).
(2) To determine the amount of source reduction required pursuant to the regulations, the department shall
establish a baseline for each eaveFec' entity producer using the last three years of packaging material and
product data sell offered for sale, sold, distributed, or imported by that ca no-cJ arN;y producer in or into ifr
the State of California. pay :f. mit �Agfk,� ■aaraa -vw iv.. y^rl re, 'r.�la�it �J�tir.g a MrTWJr_ X
carr i:cY1■ r.�`zi� %YM. ■ ► -:r✓y'1r61■ IF �anaar roataitla ,,,.�.;.iW1, �; chO r^ indwAa a chA, M plaNNa
cotta; isl. T!=e
(3) The department may consider single -use packaging and priority single -use plastic product reductions
achieved by a eavered entity producer before the effective date of the regulations if the _eveFed entity producer
can demonstrate to the satisfaction of the department that the66bcrcJ cr(vLy producer reduced the single -use
packaging or priority single -use plastic product in a manner consistent with this chapter.
(4) (A) The department shall develop a checklist of source reduction measures, and a producer that complies
with all applicable measures on the checklist shall be in compliance with the requirement to source reduce to the
maximum extent feasible pursuant to subdivision (a). The department shall also offer guidance on how to use
the checklist as a means of complying with subdivision (a). The checklist measures may include, but are not
limited to, right -sizing products, eliminating excess packaging, concentrating a product to reduce packaging, and
transitioning to reusable alternatives where those alternatives are readily available.
f 20
(8) To determine which source reduction measures to i;r,Fl rsr,c include in the checklist, the department shall
consider which single -use packaging and priority single -use plastic products are prone to become litter, have
readily available alternatives, make up a significant portion of the waste stream, or have established, or have the
potential for, recycling or composting infrastructure.
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(5) When establishing the source reduction measures, the department shall avoid incentivizing substitutions that
may have a more substantial negative impact on the environment.
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(6) In developing the regulations, the department shall count a evered cn~_'.ty'c producer's source reductions
achieved to comply with Chapter 5.5 (commencing with Section 42300) toward compliance with this chapter.
(g) If the department determines that early actions to source reduce certain single -use packaging and priority
single -use plastic products can further the purposes of this chapter, the department may adopt regulations to
achieve those reductions.
(h) In developing the regulations, the department shall consider all relevant information on reduction programs
in other states, localities, and nations, including, but not limited to, the European Union, India, Costa Rica, and
Canada.
(i)As 1. 31;\ raUv: ti(rS /once-mzxra.-r*m, tti C//'.W- eeyanj 'S'r&tlsc lin scm ly witi' kfrAC'
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alternative Fnetheds.
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sefety as Fequireel by llFita:.Iataa f ✓d-a++d Bwg-,4d ir.iahr i .
(i) The department may determine which actions producers may undertake to achieve the requirements of
subdivision (a) based on material type and form.
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(j) In adopting regulations pursuant to this section, the department shall consider and avoid disproportionate
impacts to low-income or disadvantaged communities.
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42044. (a) In adopting regulations pursuant to Section-4;'�1342, 42043, the department shall develop criteria to
determine which types of single -use packaging or priority single -use plastic products are reusable, recyclable, or
compostabie.
(b) For purposes of determining if single -use packaging or priority single -use plastic products are recyclable, the
director shall consider, at a minimum, all of the following criteria:
(1) Whether the single -use packaging or priority single -use plastic product is eligible to be labeled as "recyclable"
in accordance with the uniform standards contained in Article 7 (commencing with Section 17580) of Chapter 1
of Part 3 of Division 7 of the Business and Professions Code.
(2) Whether the single -use packaging or priority single -use plastic product is regularly collected, separated, and
cleansed for recycling by recycling service providers.
(3) Whether the single -use packaging or priority single -use plastic product is regularly sorted and aggregated
into defined streams for recycling processes.
(4) Whether the single -use packaging or priority single -use plastic product is regularly processed and reclaimed
or recycled with commercial recycling processes.
(5) Whether the single -use packaging or priority single -use plastic product material regularly becomes feedstock
that is used in the production of new products.
(6) Whether the single -use packaging or priority single -use plastic product material is recycled in sufficient
quantity, and is of sufficient quality, to maintain a market value.
(c) For purposes of determining if single -use packaging or priority single -use plastic products are compostabie,
the director shall consider, at a minimum, all of the following criteria:
(1) Whether the single -use packaging or priority single -use plastic product will, in a safe and timely manner,
break down or otherwise become part of usable compost that can be composted in a public or private compost
facility designed for and capable of processing postconsumer food waste and food -soiled paper.
(2) Whether the single -use packaging or priority single -use plastic product made from plastic is certified to meet
the ASTM standard specification identified in either subparagraph (A) or (C) of paragraph (1) of subdivision (b)
of Section 42356 and adopted in accordance with Section 42356.1, if applicable.
(3) Whether the single -use packaging or priority single -use plastic product is regularly collected and accepted for
processing at public and private compost facilities.
(4) Whether the single -use packaging or priority single -use plastic product is eligible to be labeled as
"compostabie" in accordance with the uniform standards contained in Article 7 (commencing with Section 17580)
of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code.
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(d) (1) In implementing this section, the department may consult with local governments and representatives of
the solid waste industry, the recycling industry, the compost industry, and single -use product and packaging
manufacturers to determine if a type of single -use packaging or priority single -use plastic product is recyclable,
reusable, or compostable.
(2) Local governments, solid waste facilities, recycling facilities, and composting facilities shall may provide
information requested by the department pursuant to paragraph (1) to the department.
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42045. (a) Single -use plastic packaging, single -use poly lined paper packaging, and single -use poly lined
paperboard packaging and priority single -use plastic products offered for sale, sold, distributed, or imported in or
into California by a producer shall meet the following recycling rates:
(1) On and after January 1, 2024, not less than 20 pereeFrt. percent for single -use plastic packaging, single -use
poly lined paper packaging, and single -use poly lined paperboard packaging and priority single -use plastic
products manufactured on or after January 1, 2024.
(2) On and after January 1, 2028, not less than 40 peFeent, percent for single -use plastic packaging, single -use
poly lined paper packaging, and single -use poly lined paperboard packaging and priority single -use plastic
products manufactured on or after January 1, 2028.
(3) On and after January 1, 2030, not less than 75 peretnt. percent for single -use plastic packaging, single -use
poly lined paper packaging, and single -use poly lined paperboard packaging and priority single -use plastic
products manufactured on or after January 1, 2030.
(b) Notwithstanding subdivision (a), the department may impose a higher recycling rate as -a evditiai Y yJa ;f
for single -use plastic packaging, single -use poly lined paper packaging, or single -use poly lined paperboard
packaging or priority single -use plastic products by a eeveFed entity as needed to achieve the requirements
established in Section42042 42043. The department may subsequently increase or decrease a recycling rate
imposed pursuant to this subdivision, but shall not decrease the recycling rate below the rates listed in
subdivision (a).
(c) (1) The department shall create and post on its internet website a list of recycling rates by material type and
form of single -use plastic packaging, single -use poly lined paper packaging, and single -use poly lined paperboard
packaging and priority single -use plasti, pr✓;rats. products no later than January 1, 2022. In creating the list,
the department may consider data gathered pursuant to any of the following:
(A) Chapter 746 of the Statutes of 2015.
(B) Chapter 6 (commencing with Section 42370).
(C) Chapter 395 of the Statutes of 2016.
(D) Chapter 5.5 (commencing with Section 42300).
(E) Division 12.1 (commencing with Section 14500).
(F) Data received from local jurisdictions.
(2) A eveFed entity producer may Fy demonstrate compliance with subdivision (a) or (b) by submitting to
the department evidence that the particular type of single -use plastic packaging, single -use poly lined paper
packaging, or single -use poly lined paperboard packaging or priority single -use plastic product meets the
applicable recycling rate threshold established in subdivision (a) or (b) by reference to a recycling rate on the
department's list or through another mechanism approved by the department.
(3) The department shall update the list at least every two years and shall regularly, but no less than once every
three two years, evaluate the list of recycling rates to determine whether the recycling rates are still accurate.
After evaluation, the department may amend the list to remove, add, or change recycling rates. The department
shall post any updates to the list on its internet website.
(4) Atsvv-_%; ar,hy producer that seeks to have its a recycling rate included or Changed on the list may be
required by the department to submit data for purposes of the department's determination of the recycling rate
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to include on the list.
(5) Development of, publication of, and updates made to the list pursuant to this subdivision are exempt from
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
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42045.5. 42046. The department shall report to the Legislature in compliance with Section 9795 of the
Government Code every two years its progress in implementing this chapter.
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(A)Bea£#e1:rnla`F 7j,\%,eys.
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RC1l*rr7✓i✓s.'\0 (7'J.C•C. Yom. 12': at meq.).
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(L-)r:r F: m3scz :;F tx. ; 'iiari Mciircr, frac-tr:irr. #MSK, ■rAC' 1111.4 U_ -td
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42047. (a) (1) The department may issue a notice of violation to and impose an administrative civil penalty not to
exceed fifty thousand dollars ($50,000) per day on a producer not in compliance with this chapter.
(2) Before assessing a penalty, the department may require a producer to submit a corrective action plan to the
department detailing how the producer will come into compliance with this chapter. Corrective action plans may
include, but are not limited to, actions such as shifting production away from material types and forms that do
I not meet the recycling rates required pursuant to Section 42045, reaching a minimum content standard set by
the department, or establishing a take -back system or deposit fee system for single -use packaging or priority
single -use plastic products that would increase the recycling rate of the material type and form. A producer may
request approval from the department to comply with a corrective action plan or elements of a corrective action
plan through a joint venture or joint actions with other producers.
(3) The department, in determining the penalty amount and whether or not to assess a penalty, shall consider all
of the following:
I
(A) The nature, circumstances, extent, and gravity of the violation or a condition giving rise to the violation and
the various remedies and penalties that are appropriate in the given circumstances, with primary emphasis on
protecting the public health and safety and the environment. j
(B) Whether the violation or conditions giving rise to the violation have been corrected in a timely fashion or
whether reasonable progress is being made to correct the violation or conditions giving rise to the violation.
(C) Whether the violation or conditions giving rise to the violation demonstrate a chronic pattern of
noncompliance with this chapter or the regulations adopted pursuant to this chapter.
I
(D) Whether the violation or conditions giving rise to the violation were intentional.
(E) Whether the violation or conditions giving rise to the violation were voluntarily and promptly reported to the
department before the commencement of an investigation or audit by the department.
i
(F) Whether the violation or conditions giving rise to the violation were due to circumstances beyond the
reasonable control of the producer or were otherwise unavoidable under the circumstances, including, but not
limited to, unforeseen changes in market conditions.
(G) The size and economic condition of the producer.
(4) (A) The department may extend a previously established timeframe for a producer to comply with a
corrective action plan for up to 24 months if the department sets forth steps for the producer to achieve
compliance with the corrective action plan and if the producer has demonstrated that it has made a substantial
effort to comply and that there are extenuating circumstances that have prevented it from complying.
(B) For purposes of this paragraph, "substantial effort" means that a producer has taken all practicable actions to
comply with a corrective action plan. Substantial effort does not include circumstances in which the
decisionmaking body of a producer has not taken the necessary steps to comply with a corrective action plan,
including, but not limited to, a failure to provide staff resources or a failure to provide sufficient funding to
ensure compliance with a correction action plan.
(b) A producer may offer for sale, sell, distribute, or import single -use plastic packaging, single -use poly lined
paper packaging, or single -use poly lined paperboard packaging or priority single -use plastic products in a
material type and form that does not meet the recycling rates established pursuant to subdivision (a) or (b) of
Section 42045 if the producer demonstrates to the department that it has achieved the recycling rates
established pursuant to subdivision (a) or (b) of Section 42045 for any of the following:
(1) The specific single -use plastic packaging, single -use poly lined paper packaging, or single -use poly lined
paperboard packaging or priority single -use plastic products in that material type and form offered for sale, sold,
distributed, or imported by that producer.
(2) An amount equivalent to the producer's market share of that material type and form.
(3) Any combination of paragraphs (1) and (2).
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(c) (1) The department may audit producers, including, but not limited to, reports submitted by a producer and
demonstrations made by a producer pursuant to Section 42045.
(2) The department shall notify a producer of any conduct or practice that does not comply with this chapter or
of any inconsistencies identified in the department's audit.
(3) A producer may obtain copies of the departments audit of the producer upon request.
(4) The department shall not disclose any confidential or proprietary information that is included in the
department's audit to the extent that information is protected from disclosure by existing law.
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8/15/2019
Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
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rlfP� LEGISLATIVE INFORMATION
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AB -1080 California Circular Economy and Plastic Pollution Reduction Act. (2019-2020)
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SHARE THIS: =_1 Date Published: 08/14/2019 09:00 PM
AMENDED IN SENATE AUGUST 14, 2019
AMENDED IN
SENATE JULY 11, 2019
AMENDED IN
SENATE JULY 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— 2019-2020 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)
(Coauthors: Senators Skinner, Stern, Wieckowski, and Wiener)
February 21, 2019
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
AB 1080, as amended, Gonzalez. California Circular Economy and Plastic Pollution Reduction Act.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources
Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste, including,
among other solid waste, single -use plastic straws.
The Sustainable Packaging for the State of California Act of 2018 prohibits a food service facility located in a
state-owned facility, operating on or acting as a concessionaire on state property, or under contract to provide
food service to a state agency from dispensing prepared food using a type of food service packaging unless the
type of food service packaging is on a list that the department publishes and maintains on its internet website
that contains types of approved food service packaging that are reusable, recyclable, or compostable.
leg info. legislature.ca.gov/faces/bi11NavClient.xhtml?bill_id=201920200AB1080 1112
8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
Existing law makes a legislative declaration that it is the policy goal of the state that not less than 75% of solid
waste generated be source reduced, recycled, or composted by 2020.
This bill would enact the California Circular Economy and Plastic Pollution Reduction Act, which would require the
department, before January 1, 2024, to adopt regulations that require eeveFed entities,, producers, as defined,
(1) to source reduce, to the maximum extent feasible, single -use packaging and priority single -use plastic
products, as defined,-affd (2) to ensure that by ZQDO all single -use packaging and priority single -use plastic
products manufactured on or after January 1, 2030, and offered for sale, sold, distributed, or imported in or into
the California market are recyclable or T`r` t1Gl mmid :crulrc t c�r-L'Sule:ir e. compostable, and
(3) to,tee collectively achieve and maintain, by January 1, 2030, a statewide 75% reduction of the waste
generated from single -use packaging, and a statewide 75% reduction of the waste generated from priority
single -use plastic products, offered for xlr- err Nlyd sale, sold, distributed, or imported in or into the state
through source reduction, recycling, or ant: weuld C Gwtii itS a pc1lcy Baal tG aJr;C\C, ✓/ 2S3f7, a
-7-5% rc&;,-- ar rA Usz :. >ti±4 yaazrataa Frain all a1S,1zr ■ii3lz ;;t_ pfedd_._ cff_r•01� fx i --:z s:Jr "r. the State
through wrxx rt6u xirr, ra^.),climg, ar composting. The bill would authorize the department to determine which
actions producers may undertake to achieve those requirements. The bill would require eaveFed eRti
producers to annually report specified information to the department. The bill would require the department, by
January 1, 2023, and before adopting the regulations, to develep finalize a scoping plan, as specified.
The bill would require the department to develop criteria to determine which types of single -use packaging or
priority single -use plastic products are reusable, recyclable, or compostable. The bill woulde authorize
local governments, solid waste facilities, recycling facilities, and composting facilities to provide information
requested by the department for purposes of developing that criteria. -Ey irrpm;ng zigitiarial iuCca af� 1&caf
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The bill would require a a:Ftl;y t: d ......,:, , „ v rra:ia•j.-A, rata a` rte' I:rz it's
1, Z021, rrj fess thcr *3% on ur,4 aki-r ]a+itic 1, 2028, and n ` le59 than x! urr 3 F 33,t1a FY 1 , 2 E) 3 9,
Y a^rriri:r :f 1si� a' ,irri4 ;a fAcatie-�atl�priari:l tir.�r aat w ,single -use plastic
packaging, single -use poly lined paper packaging, and single -use poly lined paperboard packaging and priority
single -use plastic products offered for sale, sold, distributed, or imported in or into California by a producer to
meet specified recycling rates that are based on date of manufacture and that increase over a prescribed
timeframe, and would authorize the department to impose a higher recycling-pa-tc U c c✓,tee, rate, as
specified. The bill would require the department to create, update, and post on its internet website a list of
recycling rNt;,a 3f :l,nrJfe- use -pL3_N:c N-Zkag�r' a 7i s; C; of t91c ►:v fkj',;z pmd8ets, rates, as specified.
The bill would require the department to report to the Legislature every 2 years its progress in implementing the
bill's provisions,
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abeve.
The bill would provide for exceptions to, and enforcement of, its provisions, including authorizing the department
to impose an administrative civil penalty in an amount not to exceed $50,000 per day on a producer that is not
in compliance with the bill's requirements.
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: Fresno
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 3 (commencing with Section 42040) is added to Part 3 of Division 30 of the Public
Resources Code, to read:
CHAPTER 3. California Circular Economy and Plastic Pollution Reduction Act
42040. This chapter shall be known, and may be cited, as the California Circular Economy and Plastic Pollution
Reduction Act.
42041. (a) The Legislature finds and declares all of the following:
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8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
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(1) Annual global production of plastic has reached 335 million tons and continues to rise. The United States
alone discards 30 million tons each year. Global plastic production is projected to more than triple by 2050,
accounting for 20 percent of all fossil fuel consumption.
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(2) Without action, projections estimate that by 2050 the mass of plastic pollution in the ocean will exceed the
mass of fish. A study by the University of Exeter and Plymouth Marine Laboratory in the United Kingdom found
plastics in the gut of every single sea turtle examined and in 90 percent of seabirds. Additionally, plastic
negatively affects marine ecosystems and wildlife, as demonstrated by countless seabirds, turtles, and marine
mammals, including, but not limited to, whales and dolphins, dying from plastic ingestion or entanglement.
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(3) Based on data from the United States Environmental Protection Agency, Institute of Scrap Recycling
Industries trade statistics, and industry news source Resource Recycling, the national recycling rate for plastic is
projected to sink from 9.1 percent in 2015 to 4.4 percent in 2018, and could drop to 2.9 percent in 2019. Even
in California, less than 15 percent of single -use plastic is recycled.
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(4) Before 2017, the United States was sending 4,000 shipping containers a day full of American waste to China
every year, including two-thirds of California's recyclable materials. However, China has implemented the Green
Fence, National Sword, and Blue Sky policies, severely restricting the amount of contaminated and poorly sorted
plastics it would accept. This shift in China's policy has resulted in the loss of markets for low -value plastic
packaging that was previously considered recyclable. That material is now being landfilled or burned.
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(5) Additionally, the foreign market for recycled paper has collapsed in California. Foreign exports of mixed paper
fell from over 400,000 tons in the first quarter of 2017 to just 136_text">(8) Local governments in California
annually spend in excess of four hundred twenty million dollars ($420,000,000) in ongoing efforts to clean up
and prevent plastic and other litter from entering our rivers and streams and polluting our beaches and oceans.
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(9) Evidence now shows that even our own food and drinking water sources are contaminated with plastic.
Microplastics have been found in tap water, bottled water, table salt, and fish and shellfish from local California
fish markets. A growing body of research is finding plastic and associated toxins throughout the food web,
including in our blood, feces, and tissues. Exposure to these toxins has been linked to cancers, birth defects,
impaired immunity, endocrine disruption, and other ailments.
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(10) It is the policy goal of the state that not less than 75 percent of solid waste generated be source reduced,
recycled, or composted by the year 2020. However, as of 2017, the state was only on track to reach 44 percent,
falling far short of this important goal. Additionally, the state has done little to require businesses to reduce the
amount of packaging and single -use product waste they generate in California.
(4E)
(11) As the fifth largest economy in the world, California has a responsibility to lead on solutions to the growing
plastic pollution crisis, and to lead in the reduction of unnecessary waste generally.
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(12) Further, businesses selling products into California have a responsibility to ensure that their packaging and
products are minimizing waste, including ensuring materials used are reusable, recyclable, or compostable. This
responsibility includes paying for the cost of the negative externality of recovery for materials they sell in
California.
(b) (1) Consistent with the policy goal established in Section 41780. 01, it is the intent of the Legislature that, by
2030, producers of single -use products that are not priority single -use plastic products collectively achieve and
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8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
maintain a statewide 75 -percent reduction of the waste generated from single -use products offered for sale,
sold, distributed, or imported in or into the state that are not priority single -use plastic products through source
reduction, recycling, or composting.
(2) In accordance with paragraph (1), it is the intent of the Legislature that producers of single -use products that
are not priority single -use plastic products do all of the following for single -use products that are not priority
single -use plastic products:
(A) Source reduce those products, and transition those products to reusable products, to the maximum extent
feasible.
(B) Ensure those products are recyclable or compostable, as determined by the department pursuant to Section
42044.
(C) For single -use plastic products that are not priority single -use plastic products and that are offered for sale,
sold, distributed, or imported in or into California, reduce waste generation by 75 percent through combined
source reduction and recycling.
42042. (a) For purposes of this chapter, all of the following shall apply:
(1) "Packaging" means the material used for the containment, protection, handling, delivery, or presentation of
goods by the producer for the user or consumer, ranging from raw materials to processed goods. Packaging
includes, but is not limited to, all of the following:
(A) Sales packaging or primary packaging.
(B) Grouped packaging or secondary packaging.
(C) Transport packaging or tertiary packaging.
(2) "Poly" includes polyethylene terephthalate (PET) and polypropylene.
(3) "Priority single -use plastic products" means the 10 single -use plastic products, or categories of those
products, that are the most littered in California, as determined by the department. The department may
reference relevant data, including, but not limited to, either of the following, when making this determination:
(A) Beach cleanup surveys.
(B) Factors relating to total maximum daily load or stormwater discharge requirements.
(4) (A) "Producer" means the person or company in the state that manufactures and offers for sale, sells, or
distributes the single -use packaging or priority single -use plastic product in the state under that person or
company's own name or brand.
(B) If subparagraph (A) does not apply, the producer is the person or company in the state that imports the
single -use packaging or priority single -use plastic product as the owner or licensee of a trademark or brand
under which the single -use packaging or priority single -use plastic product is offered for sale, sold, or distributed
in the state.
(C) If neither subparagraph (A) nor (B) apply, the producer is the person or company that offers for sale, sells,
or distributes the single -use packaging or priority single -use plastic product in the state.
(5) "Recycling rate" means the percentage, as measured by weight, volume, or number of units, of the material
used in single -use plastic packaging, single -use poly lined paper packaging, or single -use poly lined paperboard
packaging or priority single -use plastic products that are offered for sale, sold, distributed, or imported in or into
the state that is recycled over a three-year rolling period, as determined by the department. Recycling rate shall
be measured by the material type and form, such as a thermoformed or molded container of a particular resin
type as specified in Section 18015.
(6) (A) "Single -use packaging " means the packaging of a product when the packaging is routinely disposed of
after its contents have been used or unpackaged, and typically not refilled.
(B) Single -use packaging does not include either of the following:
(i) Packaging that is durable or washable, and routinely used for its original purpose multiple times before
disposal.
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8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
(ii) Packaging containing toxic or hazardous products regulated by the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. Sec. 136 et seq.).
(7) "Source reduction" includes, but is not limited to, transitioning single -use packaging to refillable or reusable
packaging. Source reduction does not include replacing a recyclable or compostable material with a
nonrecyclable or noncompostable material or a material that is less likely to be recycled or composted, and does
not include a shift to plastic material.
(b) For purposes of this chapter, medical devices, medical products, prescription drugs, and the packaging used
for these products, that require approval from the United States Food and Drug Administration, and drugs that
are used for animal medicines, including, but not limited to, parasiticide products for animals, and the packaging
used for these products, shall not be considered single -use packaging or priority single -use plastic products.
42042. 42043. (a) Before January 1, 2024, the department shall, in consultation with all relevant state agencies
with jurisdiction :.r: JVjrZaa os in Calftpr,�r_, relevant to this chapter and local jurisdictions and regional
agencies charged with meeting waste diversion goals, adopt regulations that do all of the following:
(1) (A) Require eeveFed enF"` producers of single -use packaging to source reduce single -use packaging to the
maximum extent feasible.
(B) Requires -N-.titics producers of single -use packaging to ensure that by 2939 all single -use packaging
manufactured on or after January 1, 2030, and offered for sale, sold, distributed, or imported in or into the
California market is recyclable or compostable as determined by the department pursuant to Section 42044.
(2) (A) Require eeveFeEl entiti producers of priority single -use plastic products to source reduce priority single -
use plastic products to the maximum extent feasible.
(B) Requirereed a�iti✓ producers of priority single -use plastic products to ensure that by 2039 priority
single -use plastic products manufactured on or after January 1, 2030, and offered for sale, sold, distributed, or
imported in or into the California market are recyclable or compostable as determined by the department
pursuant to Section 42044.
(3) eh*eye, Require producers to collectively achieve and maintain, by January 1, 2030, a statewide 75 -percent
reduction of the waste generated from single -use packaging, and a statewide 75 -percent reduction of the waste
generated from priority single -use plastic products, offered for "Ac, cr cath sale, sold, distributed, or imported in
or into the state through source reduction, recycling, or composting.
(b) (1) Be€ere By January 1, 2023, and before adopting the regulations, the department shall deveFsp finalize a
scoping plan for meeting the requirements of this section.
(2) As part of the scoping plan, the department shalleanduet do all of the following:
(A) Conduct extensive outreach to stakT stakeholders and to state and local agencies with jurisdiction
relevant to this chapter. This outreach shall include, but is not limited to,
(A)Eenvef►+ffg convening a series of public workshops throughout the state to give interested parties an
opportunity toter
(B)GeflveRii1@ comment and a series of stakeholder meetings designed to facilitate dialogue between
stakeholders representing different interest groups such as local governments, the solid waste and recycling
industries, product and packaging manufacturers, retailers, trade associations, and environmental organizations.
These meetings shall be held throughout the state to increase the opportunity for participation and shall inform
the development of regulations pursuant to this section.
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(t3) Evaluate the feasibility of employing the following regulatory measures:
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(i) Developing incentives and policies to maximize and encourage in-state manufacturing using recycled material
generated in California.
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8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
(ii) Developing economic mechanisms to reduce the distribution of single -use packaging and priority single -use
plastics- products or to transition single -use packaging and priority single -use plastic products to
recyclable or compostable alternatives. These economic mechanisms may include, but are not limited to,
allowing producers to establish and operate a collection and deposit program, assess a generation -based fee, or
assess an advanced recycling fee.
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(iii) Discouraging, to the extent feasible, the litter, export, or improper disposal of single -use packaging, priority
single -use plastic products, and other materials likely to harm the environment or public health in California or
elsewhere in the world.
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(iv) Establishing labeling requirements regarding tha a, 2onpaeteb4ity recyclability, compostability,
or reusability of single -use packaging and priority single -use plastic products. Labeling may reflect whether the
packaging or product can be readily Feeyeled OF 68m9pasted recycled, composted, or reused and whether the
packaging or product is likely to contaminate other recyclable or compostable material or complicate processing.
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(v) Adopting model best practices for Crkiti:r producers to reduce packaging waste, including through
the creation of effective and convenient take -back opportunities, deposit systems, reusable and refillable delivery
systems, designing for recyclability, or similar mechanisms.
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(vi) Adopting actions identified through the California Ocean Litter Prevention Strategy and the Statewide
Microplastics Strategy.
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(vii) Establishing an extended producer responsibility pr✓r*arr� program, where appropriate, to requireeeveFed
entities producers to contribute to the costs associated with processing the single -use packaging and priority
single -use plastic products they produce.
(viii) Establishing criteria for the source reduction requirements specified in subdivision (a), including reducing
weight, volume, or quantity of single -use packaging and priority single -use plastic product material in a way that
does not decrease the ability of the material to be recycled or reused.
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(ix) Establishing minimum postconsumer recycled content requirements, where appropriate, for
single -use packaging and priority single -use plastic products.
(C) Identify all of the following:
(i) Opportunities to improve and expand waste collection and processing capabilities and infrastructure, including
the use of innovative new recycling technologies and secondary material recovery facilities.
(ii) Opportunities to harmonize local waste, recycling, and composting programs among local jurisdictions and
barriers to cooperation and standardization of programs.
(iii) Opportunities for encouraging the use of reusable or refillable packaging.
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8/15/2019 Bill Text - AB-1080 California Circular Economy and Plastic Pollution Reduction Act.
(iv) Opportunities for public education efforts to increase recycling and composting of single-use packaging and
priority single-use plastic products and reducing litter from these items.
(v) Potential end-use markets for collected materials and policies required to stimulate domestic markets.
(c) (1) The department may identify single-use packaging or priority single-use plastic products that, while
determined to be single use for purposes of this chapter, present unique challenges in complying with this
chapter.
(2) For any packaging or products identified as presenting these unique challenges, the department shall may
develop a plan to phase the packaging or products into the regulations.
(3) The department shall ensure that any regulations adopted pursuant to this chapter account for guidelines
E issued by the United States Food and Drug Administration. If the department determines a type of single-use
packaging or priority single-use plastic product cannot comply with this chapter due to health and safety
reasons, or because it is unsanitary or unsafe to recycle, the department may exempt that packaging or product
from this chapter.
() regulations The shall include a mechanism for accounting for the total statewide generation of single-use
packaging and priority single-use plastic products in order to set a baseline amount for waste generation from
these sources.
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(e) (1) The department shall require a __veFe' entity producer to annually report all of the following information
to the department for the producer's single-use packaging and priority single-use plastic
products:
(A) The quantity, weight, volume, and type of single-use packaging and priority single-use plastic product
materials aal--ap-4,3k7i✓rte offered for sale, sold, distributed, or imported in or into California by themed
eritity producer annually.
(B) The quantity, weight, volume, and type of material source reduced by the eeveFed entit producer annually.
i (C) Any other data the department deems necessary to establish a baseline for waste generation and subsequent
source reduction by a eaveFed entity, producer.
(2) Any market sensitive data received by the department pursuant to this subdivision shall be held
confidentially by the department to the extent required by existing law.
(3) The department shall create an online registration form to facilitate submitting reports pursuant to this
subdivision.
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(4) Producers shall submit the information required by the department pursuant to paragraph (1) using the
format established by the department pursuant to paragraph (3).
j (5) To receive this reporting data in a timely manner to inform the regulations adopted pursuant to this chapter,
the department may adopt emergency regulations to implement the requirements of this subdivision.
I
(f) (1) The regulations shall include direct source reductions of single-use packaging and priority single-use
plastic products to the maximum extent feasible, in accordance with subdivision (a).
(2) To determine the amount of source reduction required pursuant to the regulations, the department shall
establish a baseline for each ec.c-ed entity producer using the last three years of packaging material and
product data se'd offered for sale, sold, distributed, or imported by that-eevered meaty irAe-&r producer in or into
the State of California.For p►� Irezaz ci �4i3 shrrior, -a&a.S&r. *iW,! ne, ?_,:1acclrs; & rerralible-a
cc�r atrlalc matcricl +t&, air rYureeffMestW3blc M0, 1r.ZIW48 1k eY,ii` ln1 plash
r^ tw iel. T"c
(3) The department may consider single -use packaging and priority single -use plastic product reductions
achieved by a eevered entity producer before the effective date of the regulations if theea •aw: *►city producer
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8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
can demonstrate to the satisfaction of the department that the eeticrd amity producer reduced the single -use
packaging or priority single -use plastic product in a manner consistent with this chapter.
(4) (A) The department shall develop a checklist of source reduction measures, and a producer that complies
with all applicable measures on the checklist shall be in compliance with the requirement to source reduce to the
maximum extent feasible pursuant to subdivision (a). The department shall also offer guidance on how to use
the checklist as a means of complying with subdivision (a). The checklist measures may include, but are not
limited to, right -sizing products, eliminating excess packaging, concentrating a product to reduce packaging, and
transitioning to reusable alternatives where those alternatives are readily available.
f -L)
(8) To determine which source reduction measures to irrflcmz—.t, include in the checklist, the department shall
consider which single -use packaging and priority single -use plastic products are prone to become litter, have
readily available alternatives, make up a significant portion of the waste stream, or have established, or have the
potential for, recycling or composting infrastructure.
(5) When establishing the source reduction measures, the department shall avoid incentivizing substitutions that
may have a more substantial negative impact on the environment.
(6) In developing the regulations, the department shall count a __veFeEl emit•,'_ producer's source reductions
achieved to comply with Chapter 5.5 (commencing with Section 42300) toward compliance with this chapter.
I
(g) If the department determines that early actions to source reduce certain single -use packaging and priority
single -use plastic products can further the purposes of this chapter, the department may adopt regulations to
achieve those reductions.
(h) In developing the regulations, the department shall consider all relevant information on reduction programs
in other states, localities, and nations, including, but not limited to, the European Union, India, Costa Rica, and
I Canada.
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(i) The department may determine which actions producers may undertake to achieve the requirements of
subdivision (a) based on material type and form.
(j) In adopting regulations pursuant to this section, the department shall consider and avoid disproportionate
impacts to low-income or disadvantaged communities.
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8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
42044. (a) In adopting regulations pursuant to SectionAmt, 42043, the department shall develop criteria to
determine which types of single -use packaging or priority single -use plastic products are reusable, recyclable, or
compostable.
(b) For purposes of determining if single -use packaging or priority single -use plastic products are recyclable, the
director shall consider, at a minimum, all of the following criteria:
(1) Whether the single -use packaging or priority single -use plastic product is eligible to be labeled as "recyclable"
in accordance with the uniform standards contained in Article 7 (commencing with Section 17580) of Chapter 1
of Part 3 of Division 7 of the Business and Professions Code.
(2) Whether the single -use packaging or priority single -use plastic product is regularly collected, separated, and
cleansed for recycling by recycling service providers.
(3) Whether the single -use packaging or priority single -use plastic product is regularly sorted and aggregated
into defined streams for recycling processes.
(4) Whether the single -use packaging or priority single -use plastic product is regularly processed and reclaimed
or recycled with commercial recycling processes.
(5) Whether the single -use packaging or priority single -use plastic product material regularly becomes feedstock
that is used in the production of new products.
(6) Whether the single -use packaging or priority single -use plastic product material is recycled in sufficient
quantity, and is of sufficient quality, to maintain a market value.
(c) For purposes of determining if single -use packaging or priority single -use plastic products are compostable,
the director shall consider, at a minimum, all of the following criteria:
(1) Whether the single -use packaging or priority single -use plastic product will, in a safe and timely manner,
break down or otherwise become part of usable compost that can be composted in a public or private compost
facility designed for and capable of processing postconsumer food waste and food -soiled paper.
(2) Whether the single -use packaging or priority single -use plastic product made from plastic is certified to meet
the ASTM standard specification identified in either subparagraph (A) or (C) of paragraph (1) of subdivision (b)
of Section 42356 and adopted in accordance with Section 42356.1, if applicable.
(3) Whether the single -use packaging or priority single -use plastic product is regularly collected and accepted for
processing at public and private compost facilities.
(4) Whether the single -use packaging or priority single -use plastic product is eligible to be labeled as
"compostable" in accordance with the uniform standards contained in Article 7 (commencing with Section 17580)
of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code.
(d) (1) In implementing this section, the department may consult with local governments and representatives of
the solid waste industry, the recycling industry, the compost industry, and single -use product and packaging
manufacturers to determine if a type of single -use packaging or priority single -use plastic product is recyclable,
reusable, or compostable.
(2) Local governments, solid waste facilities, recycling facilities, and composting facilities shall may provide
information requested by the department pursuant to paragraph (1) to the department.
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42045. (a) Single -use plastic packaging, single -use poly lined paper packaging, and single -use poly lined
paperboard packaging and priority single -use plastic products offered for sale, sold, distributed, or imported in or
into California by a producer shall meet the following recycling rates:
(1) On and after January 1, 2024, not less than 20 %txcr,t. percent for single -use plastic packaging, single -use
poly lined paper packaging, and single -use poly lined paperboard packaging and priority single -use plastic
products manufactured on or after January 1, 2024.
(2) On and after January 1, 2028, not less than 40 pemenb percent for single -use plastic packaging, single -use
poly lined paper packaging, and single -use poly lined paperboard packaging and priority single -use plastic
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8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
products manufactured on or after January 1, 2028.
(3) On and after January 1, 2030, not less than 75 peeeef9t: percent for single -use plastic packaging, single -use
poly lined paper packaging, and single -use poly lined paperboard packaging and priority single -use plastic
products manufactured on or after January 1, 2030.
(b) Notwithstanding subdivision (a), the department may impose a higher recycling rate ac a of sale of
for single -use plastic packaging, single -use poly lined paper packaging, or single -use poly lined paperboard
packaging or priority single -use plastic products--by--a-es ,crcd amity as needed to achieve the requirements
established in Section 42942 42043. The department may subsequently increase or decrease a recycling rate
imposed pursuant to this subdivision, but shall not decrease the recycling rate below the rates listed in
subdivision (a).
(c) (1) The department shall create and post on its internet website a list of recycling rates by material type and
form of single -use plastic packaging, single -use poly lined paper packaging, and single -use poly lined paperboard
packaging and priority single -use plastic Fria. products no later than January 1, 2022. In creating the list,
the department may consider data gathered pursuant to any of the following:
(A) Chapter 746 of the Statutes of 2015.
(B) Chapter 6 (commencing with Section 42370).
(C) Chapter 395 of the Statutes of 2016.
(D) Chapter 5.5 (commencing with Section 42300).
(E) Division 12.1 (commencing with Section 14500).
(F) Data received from local jurisdictions.
(2) A rc"c-_d entity producer mayfly demonstrate compliance with subdivision (a) or (b) by submitting to
the department evidence that the particular type of single -use plastic packaging, single -use poly lined paper
packaging, or single -use poly lined paperboard packaging or priority single -use plastic product meets the
applicable recycling rate threshold established in subdivision (a) or (b) by reference to a recycling rate on the
department's list or through another mechanism approved by the department.
(3) The department shall update the list at least every two years and shall regularly, but no less than once every
thFee two years, evaluate the list of recycling rates to determine whether the recycling rates are still accurate.
After evaluation, the department may amend the list to remove, add, or change recycling rates. The department
shall post any updates to the list on its internet website.
(4) A. os\"!i ed 3riltj producer that seeks to haves a recycling rate included or changed on the list may be
required by the department to submit data for purposes of the department's determination of the recycling rate
to include on the list.
(5) Development of, publication of, and updates made to the list pursuant to this subdivision are exempt from
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(d)TVc ..r/ tc (o) tc "rnpiianzi wtk ts�
EhapteF.
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er iwrl: .;r, J1r;,3or,�;e.
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4204rf 42046. The department shall report to the Legislature in compliance with Section 9795 of the
Government Code every two years its progress in implementing this chapter.
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leginfo.legislature.ca.gov/faces/biliNavClient.xhtml?bill_id=201920200AB1080 10/12
8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
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42047. (a) (i) The department may issue a notice of violation to and impose an administrative civil penalty not to
exceed fifty thousand dollars ($50,000) per day on a producer not in compliance with this chapter.
(2) Before assessing a penalty, the department may require a producer to submit a corrective action plan to the
department detailing how the producer will come into compliance with this chapter. Corrective action plans may
include, but are not limited to, actions such as shifting production away from material types and forms that do
not meet the recycling rates required pursuant to Section 42045, reaching a minimum content standard set by
the department, or establishing a take -back system or deposit fee system for single -use packaging or priority
single -use plastic products that would increase the recycling rate of the material type and form. A producer may
request approval from the department to comply with a corrective action plan or elements of a corrective action
plan through a joint venture or joint actions with other producers.
(3) The department, in determining the penalty amount and whether or not to assess a penalty, shall consider all
of the following:
(A) The nature, circumstances, extent, and gravity of the violation or a condition giving rise to the violation and
the various remedies and penalties that are appropriate in the given circumstances, with primary emphasis on
protecting the public health and safety and the environment.
leg info. legislature.ca.gov/faces/bill NavClient.xhtml?bill_ id=201920200AB 1080 11/12
8/15/2019 Bill Text - AB -1080 California Circular Economy and Plastic Pollution Reduction Act.
(B) Whether the violation or conditions giving rise to the violation have been corrected in a timely fashion or
whether reasonable progress is being made to correct the violation or conditions giving rise to the violation.
(C) Whether the violation or conditions giving rise to the violation demonstrate a chronic pattern of
noncompliance with this chapter or the regulations adopted pursuant to this chapter.
I
(D) Whether the violation or conditions giving rise to the violation were intentional.
(E) Whether the violation or conditions giving rise to the violation were voluntarily and promptly reported to the
department before the commencement of an investigation or audit by the department.
(F) Whether the violation or conditions giving rise to the violation were due to circumstances beyond the
reasonable control of the producer or were otherwise unavoidable under the circumstances, including, but not
limited to, unforeseen changes in market conditions.
(G) The size and economic condition of the producer.
(4) (A) The department may extend a previously established timeframe for a producer to comply with a
corrective action plan for up to 24 months if the department sets forth steps for the producer to achieve
compliance with the corrective action plan and if the producer has demonstrated that it has made a substantial
effort to comply and that there are extenuating circumstances that have prevented it from complying.
(8) For purposes of this paragraph, "substantial effort" means that a producer has taken all practicable actions to
comply with a corrective action plan. Substantial effort does not include circumstances in which the
decisionmaking body of a producer has not taken the necessary steps to comply with a corrective action plan,
including, but not limited to, a failure to provide staff resources or a failure to provide sufficient funding to
ensure compliance with a correction action plan.
(b) A producer may offer for sale, sell, distribute, or import single -use plastic packaging, single -use poly lined
paper packaging, or single -use poly lined paperboard packaging or priority single -use plastic products in a
material type and form that does not meet the recycling rates established pursuant to subdivision (a) or (b) of
Section 42045 if the producer demonstrates to the department that it has achieved the recycling rates
established pursuant to subdivision (a) or (b) of Section 42045 for any of the following:
(1) The specific single -use plastic packaging, single -use poly lined paper packaging, or single -use poly lined
paperboard packaging or priority single -use plastic products in that material type and form offered for sale, sold,
distributed, or imported by that producer.
(2) An amount equivalent to the producer's market share of that material type and form.
(3) Any combination of paragraphs (1) and (2).
(c) (1) The department may audit producers, including, but not limited to, reports submitted by a producer and
demonstrations made by a producer pursuant to Section 42045.
(2) The department shall notify a producer of any conduct or practice that does not comply with this chapter or
of any inconsistencies identified in the department's audit.
(3) A producer may obtain copies of the department's audit of the producer upon request,
(4) The department shall not disclose any confidential or proprietary information that is included in the
department's audit to the extent that information is protected from disclosure by existing law.
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