HomeMy WebLinkAboutAgenda Packet 02242020A G E N D A
MEETING OF THE CITY COUNCIL
Monday,February 24,2020 ~7:00 PM
City Council Chambers
211 Eighth Street
Seal Beach,California
SCHELLY SUSTARSIC
MAYOR
Fourth District
JOE KALMICK
MAYOR PRO TEM
First District
THOMAS MOORE
COUNCIL MEMBER
Second District
MIKE VARIPAPA
COUNCIL MEMBER
Third District
SANDRA MASSA-LAVITT
COUNCIL MEMBER
Fifth District
This Agenda contains a brief general description of each item to be considered.No action or discussion shall be taken on
any item not appearing on the agenda,except as otherwise provided by law.Supporting documents,including agenda
staff reports,and any public writings distributed by the City to at least a majority of the Council Members regarding any
item on this agenda are available for review at City Hall in the City Clerk's Office located at 211 Eighth Street,Seal
Beach,California,Monday through Friday,between the hours of 8:00 a.m.and 5:00 p.m.or contact the City Clerk,
at (562)431-2527.
City Council meetings are broadcast live on Seal Beach TV3 and on the City's website www.sealbeachca.gov).Check
the SBTV3 schedule for rebroadcast of —meetings are available on-demand on the website (starting 2012).meeting
In compliance with the Americans with Disabilities Act of 1990,if you require disability -related modification or
accommodation to attend or participate in this meeting,including auxiliary aids or services,please call the City Clerk'
s office at (562)431 -2527 at least 48 hours prior to the meeting.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
COUNCIL ROLL CALL
APPROVAL OF AGENDA &WAIVER OF FULL READING OF RESOLUTIONS
ORDINANCES
By motion of the City Council this is the time to notify the public of any
changes to the agenda and /or rearrange the order of the agenda.
PRESENTATIONS /RECOGNITIONS
•Tobacco Grant Presentation
ORAL COMMUNICATIONS
At this time members of the public may address the Council regarding any items within
the subject matter jurisdiction of the City Council.Pursuant to the Brown Act,the Council
cannot discuss or take action on any items not on the agenda unless authorized by law.
Matters not on the agenda may,at the Council's discretion,be referred to the City Manager
and placed on a future agenda.
Those members of the public wishing to speak are asked to come forward to the
microphone and state their name for the record.All speakers will be limited to a period
of five (5)minutes.Speakers must address their comments only to the Mayor and entire
City Council,and not to any individual,member of the staff or audience.Any documents
for review should be presented to the City Clerk for distribution.
Oral Communications
CITY ATTORNEY REPORT Craig A.Steele,City Attorney
CITY MANAGER REPORT Jill R.Ingram,City Manager
COUNCIL COMMENTS
General Council Member comments and reporting pursuant to AB 1234.
COUNCIL ITEMS
CONSENT CALENDAR
Items on the consent calendar are considered to be routine and are enacted by a single
motion with the exception of items removed by Council Members.
A.Approval of the February 10,2020 City Council Minutes -That the City
Council approve the minutes of the Regular City Council meeting held on
February 10,2020.
B.Demands on City Treasury (Fiscal Year 2020)–February 24,2020
-Ratification.
C.Monthly Investment Report –January 31,2020 -Receive and file.
D.City of Seal Beach Annual Audit Reports for Fiscal Year Ended June 30,
2019 -That the City Council receive and file the following documents for Fiscal
Year ending June 30,2019:1.Audit Communication Letter (SAS114);and,2.
Report on Internal Control (GAS);and,3.Comprehensive Annual Financial
Report (CAFR);and,4.Appropriations (GANN)Limit Final Report.
E.FY 19-20 Annual Slurry Seal Program –Award Construction Contract,CIP
ST2001 -That the City Council adopt Resolution 7005:1.Approving plans and
specifications for the Fiscal Year 2019-2020 Annual Slurry Seal Program,CIP
ST2001;and,2.Awarding and authorizing the City Manager to execute a
construction contract to Doug Martin Contracting Company,Inc.,in the amount
of $156,057,waiving minor bid irregularities,and rejecting all other bids;and,3.
Authorizing the City Manager to approve contract changes in a not-to-exceed
amount of $15,605;and,4.Authorizing the City Manager to approve payments
for inspection and testing services in a not-to-exceed amount of $15,000.
F.Professional Services Agreement with Tetra Tech,Inc.for Bolsa Chica
Water Well Improvements,CIP WT1603 -That the City Council adopt
Resolution 7006 :1.Authorizing and directing the City Manager to execute the
Agreement;and,2.Awarding a Professional Services Agreement with Tetra
Tech in a not-to-exceed amount of $278,000 for the Bolsa Chica Water Well
Improvements,CIP WT1603.
G.Approving Amendment No.1 to the Professional Services Agreement with
Westberg +White,Inc.,for Community Pool Preliminary Design Services
-That the City Council adopt Resolution 7007:1.Approving Amendment No.1
to the Professional Services Agreement dated September 8,2014 between the
City of Seal Beach and Westberg +White,Inc.to increase Consultant’s
compensation by $88,569 for a revised total not-to-exceed contract amount of
$327,499 for additional Community Pool Preliminary Design Services;and,2.
Authorizing the City Manager to execute Amendment No.1.
H.Approve the Memorandum of Understanding with the Seal Beach Marine
Safety Management Association for the Period of July 1,2019 through June
30,2021 and,Authorizing the City Manager to Execute the Same -That
the Council adopt Resolution 7008:1.Approving the Memorandum of
Understanding with the Seal Beach Marine Safety Management Association
(SBMSMA)for the period of July 1,2019 through June 30,2021;and,2.
Authorizing the City Manager to execute the same.
ITEMS REMOVED FROM THE CONSENT CALENDAR
PUBLIC HEARING –None
UNFINISHED /CONTINUED BUSINESS –None
NEW BUSINESS
I.Opposition to the Modified Regional Housing Needs Assessment (RHNA)
Allocation Methodology Approved by the Southern California Association
of Governments (SCAG)-That the City Council approve Resolution 7009
opposing the modified Regional Housing Needs Assessment (RHNA)allocation
methodology approved on November 7,2019 by the Southern California
Association of Governments (SCAG).
ADJOURNMENT
Adjourn the City Council to Monday,March 9,2020 at 5:30 p.m.to meet in closed
session,if deemed necessary.
Agenda Item A
AGENDA STAFF REPORT
DATE:February 24, 2020
TO:Honorable Mayor and City Council
THRU:Jill R. Ingram, City Manager
FROM:Gloria D. Harper, City Clerk
SUBJECT:Approval of the February 10, 2020 City Council Minutes
________________________________________________________________
SUMMARY OF REQUEST:
That the City Council approve the minutes of the Regular City Council meeting
held on February 10, 2020.
BACKGROUND AND ANALYSIS:
This section does not apply.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
No legal analysis is required for this item.
FINANCIAL IMPACT:
There is no financial impact for this item.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
MEASURE BB:
This item is not applicable to Measure BB, the Seal Beach Neighborhood and
Essential Services Protection Measure.
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RECOMMENDATION:
That the City Council approve the minutes of the Regular City Council meeting
held on February 10, 2020.
SUBMITTED BY: NOTED AND APPROVED:
Gloria D. Harper Jill R. Ingram
Gloria D. Harper, City Clerk Jill R. Ingram, City Manager
Prepared by: Dana Engstrom, Deputy City Clerk
ATTACHMENTS:
A. Minutes - Regular Session
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Seal Beach, California
February 10, 2020
The City Council met in regular session at 7:05 p.m. in the City Council Chambers.
Council Member Moore led the Pledge of Allegiance.
ROLL CALL
Present: Mayor Sustrasic
Council Members: Kalmick, Massa-Lavitt, Moore
Absent: Varipapa
City Staff: Craig A. Steele, City Attorney
Jill R. Ingram, City Manager
Patrick Gallegos, Assistant City Manager
Chief Phil Gonshak, Seal Beach Police Department
Alayna Hoang, Interim Director of Finance/City Treasurer
Steve Myrter, P.E., Director of Public Works
Les Johnson, Director of Community Development
Dana Engstrom, Deputy City Clerk
APPROVE THE ABSENCE OF COUNCIL MEMBER VARIPAPA
Council Member Moore moved, second by Mayor Pro Tem Kalmick to approve the
absence of Council Member Varipapa.
AYES: Kalmick, Massa-Lavitt, Moore, Sustarsic
NOES: None
ABSENT: Varipapa
ABSTAIN: None
Motion carried
APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND
ORDINANCES
Deputy City Clerk Engstrom read into the record that three (3) communications were
received after the posting of the agenda regarding various agenda items that were
distributed to City Council and made available to the public.
Mayor Pro Tem Kalmick moved, second by Council Member Moore to approve the
agenda.
AYES: Kalmick, Massa-Lavitt, Moore, Sustarsic
NOES: None
ABSENT: Varipapa
ABSTAIN: None
Motion carried
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PRESENTATIONS / RECOGNITIONS
Special Recognition of Patti Blake, former owner of Blue Moon – A Philanthropic
Boutique
Special Recognition of former Planning Commissioner Robert Aguilar, Jr.
ORAL COMMUNICATIONS
Mayor Sustarsic opened oral communications. Speakers: Joyce Ross-Parque and
Robert Goldberg. Mayor Sustarsic closed oral communications.
CITY ATTORNEY REPORT
City Attorney Steele had nothing to report.
CITY MANAGER REPORT
City Manager Ingram recognized Orange County Fire Authority (OCFA) Division Chief
Ron Roberts for receiving the Division Chief of the Year Award at the OCFA Best and
Bravest Awards Ceremony.
She reminded the public of the upcoming Community Pool Workshops scheduled for
February 13th in the Council Chambers at 6pm and February 22nd at the McGaugh Pool
at 10am.
COUNCIL COMMENTS
Council Member Moore requested the City Attorney to respond to a comment made
during the Public Comment period regarding legal fees as it relates to Item G on the
agenda.
Mayor Pro Tem Kalmick attended his first San Gabriel Rivers and Mountains
Conservancy meeting and expressed his amazement with the amount of projects that
the Conservancy is involved in; and, reported that he spoke to them regarding the San
Gabriel River trash issues that impact Seal Beach. He encouraged residents to attend
the Community Pool Workshops and voice their opinion on what they would like to see
happen with the community pool project.
Council Member Massa-Lavitt attended the Mosquito Abatement meeting and the
Orange County Sanitation District’s Operations Committee meeting.
Mayor Sustarsic indicated that she attended the Golden Rain Foundation meeting and
thanked them for allowing her to lead the flag salute. She also attended the Regional
Military Affairs Committee meeting regarding updates at the Joint Forces Training Base;
the Garden Grove State of the City Address; met with the Commanding Officer of the
Naval Weapons Station; the Los Alamitos Unified School District Working Group
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meeting; met with the Pickle Ball Group at the Tennis Center; and, attended a meeting
in preparation for the City’s upcoming Strategic Planning Workshop.
COUNCIL ITEMS
A. City Council Appointment to the Planning Commission – District Two - At the
request of Council Member Moore, that the City Council appoint Ronde Winkler to the
Planning Commission, as a representative for District Two.
Deputy City Clerk Engstrom provided a brief staff report.
Council Member Moore spoke regarding Ronde Winkler and provided some background
information on her qualifications.
Council Member Massa-Lavitt spoke in support of the appointment of Ronde Winkler.
Council Member Moore moved, second by Council Member Massa-Lavitt to appoint
Ronde Winkler to the Planning Commission, as a representative for District Two.
AYES: Kalmick, Massa-Lavitt, Sustarsic, Moore
NOES: None
ABSENT: Varipapa
ABSTAIN: None
Motion carried
CONSENT CALENDAR
Council Member Moore moved, second by Mayor Pro Tem Kalmick, to approve the
recommended actions on the consent calendar.
B. Approval of the January 27, 2020 City Council Minutes - That the City Council
approve the minutes of the Closed Session/Regular City Council meeting held on
January 27, 2020.
C. Demands on City Treasury (Fiscal Year 2020) – February 10, 2020 - Ratification.
D. Authorization to Approve Payment for the Emergency Water System Repairs
and Dispensing with Public Bidding Requirements - That the City Council adopt
Resolution 7001 to: 1. Confirm that the emergency repairs of the City’s public water
system in the alley west of 311 Main Street were of urgent necessity for the immediate
preservation of life, health, and property; and, 2. Approve Budget Amendment BA 20-
08-01 in the amount of $33,000 for emergency repairs of the City’s public water system
in the alley west of 311 Main Street, Project EM2003; and, 3. Ratify the Purchase Order
contract with Valverde Construction, Inc. for the emergency water system and alley
repairs in the alley west of 311 Main Street, without advertising for bids, in an amount
not to exceed $32,034.97; and, 4. Accept the emergency repairs of the City’s public
water system in the alley west of 311 Main Street, Project EM2003 by Valverde
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Construction in the amount of $32,034.97; and, 5. Direct the City Clerk to file a “Notice
of Completion” with the Orange County Clerk-Recorder within ten (10) days from the
date of acceptance and to release retention in the amount of $1,601.75 thirty-five (35)
days following the filing of the Notice of Completion.
E. Homeland Security Grant Program Agreement for Transfer or Purchase of
Equipment and Services or for Reimbursement of Training Costs for Fiscal Year
2018 Urban Area Security Initiative (UASI) - The proposed City Council action will
adopt Resolution 7002 authorizing the City Manager to execute an agreement on the
City’s behalf for transfer or purchase of equipment and services or for reimbursement of
training costs for Fiscal Year 2018 Urban Areas Security Initiative (UASI) Homeland
Security Grant Program to take any further actions necessary for the purpose of
obtaining federal financial assistance provided by the Department of Homeland Security
and sub-granted through the State of California and Anaheim Police Department in its
capacity as the Core City for the Anaheim/Santa Ana Urban Area Security Initiative.
F. Zero Tower Safety Improvements CIP BP1902 - That the City Council adopt
Resolution 7003: 1. Awarding the Public Works Agreement with C.I. Services, Inc., in a
not-to-exceed amount of $30,800 for the Zero Tower Safety Improvements, CIP
BP1902; and, 2. Authorizes and directs the Public Works Director to execute the
agreement.
G. Grant of Easement and Temporary Construction Easement to Southern
California Gas Company - That the City Council adopt Resolution 7004: 1. Approving
the Grant of Easement and Temporary Construction Easement to Southern California
Gas Company for $114,000 to be paid by OCTA; and, 2. Authorizing the City Manager
to execute documents in form approved by the City Attorney on behalf of the City.
AYES: Kalmick, Massa-Lavitt, Sustarsic, Moore
NOES: None
ABSENT: Varipapa
ABSTAIN: None
Motion carried
ITEMS REMOVED FROM CONSENT CALENDAR
There were no items removed from the consent calendar.
PUBLIC HEARING
There were no public hearing items.
UNFINISHED/CONTINUED BUSINESS
There were no unfinished/continued business.
NEW BUSINESS
There were no new business items.
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ADJOURNMENT
Mayor Sustarsic adjourned the City Council meeting at 7:46 p.m. to Monday,
February 24, 2020 at 5:30 p.m. to meet in closed session, if deemed necessary.
______________________
Gloria D. Harper, City Clerk
City of Seal Beach
Approved: ___________________________
Schelly Sustarsic, Mayor
Attested: ______________________
Gloria D. Harper, City Clerk
Agenda Item D
AGENDA STAFF REPORT
DATE:February 24, 2020
TO:Honorable Mayor and City Council
THRU:Jill R. Ingram, City Manager
FROM:Alayna Hoang, Interim Director of Finance/City Treasurer
SUBJECT:City of Seal Beach Annual Audit Reports for Fiscal Year
Ended June 30, 2019
______________________________________________________________
SUMMARY OF REQUEST:
That the City Council receive and file the following documents for Fiscal Year
ending June 30, 2019:
1. Audit Communication Letter (SAS114); and,
2. Report on Internal Control (GAS); and,
3. Comprehensive Annual Financial Report (CAFR); and,
4. Appropriations (GANN) Limit Final Report.
BACKGROUND AND ANALYSIS:
The audit firm of The Pun Group Accountants & Advisors has completed the
annual audit of the City of Seal Beach (City) for the fiscal year that ended June
30, 2019. The audit was conducted in accordance with generally accepted
auditing standards and included examining, on a test basis, evidence supporting
the amounts and disclosures to obtain reasonable assurance that the financial
statements are free of material misstatements.
In the opinion of the auditors, the financial statements fairly present, in all material
respects, the financial position of the City of Seal Beach on
June 30, 2019. The 2019 CAFR (Attachment C) is included for your information
and use. The CAFR was submitted to the Government Finance Officers
Association to, once again, be considered for the Certificate of Achievement for
Excellence in Financial Reporting.
The purpose of the Audit Communication Letter (Attachment A) is to provide a
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mechanism for communication with the governing body highlighting significant
issues that may arise during the audit process.
As indicated, the City’s financial statements were clearly presented.
The Report on Internal Control (Attachment B) is to help the auditor in designing
audit procedures for the purpose of expressing an opinion on the financial
statements.
The purpose of the Appropriations Limit Final Report (Attachment D) is to attest
that the calculation was performed using the correct methodology and was
correctly calculated based upon the information provided.
The Council Audit Committee (Mayor Pro Tem Kalmick and Council Member
Varipapa) reviewed and discussed these items at a meeting on January 23, 2020.
ENVIRONMENTAL IMPACT:
This action is exempt from the California Environmental Quality Act, because it is
not defined as a “project” under CEQA.
LEGAL ANALYSIS:
The City Attorney has reviewed this staff report and approved it as to form.
FINANCIAL IMPACT:
There is no financial impact in receiving this information.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
MEASURE BB:
This item is not applicable to Measure BB, the Seal Beach Neighborhood and
Essential Services Protection Measure.
RECOMMENDATION:
That the City Council receive and file the following documents for Fiscal Year
ending June 30, 2019:
1. Audit Communication Letter (SAS114); and,
2. Report on Internal Control (GAS); and,
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3. Comprehensive Annual Financial Report (CAFR); and,
4. Appropriations (GANN) Limit Final Report.
SUBMITTED BY: NOTED AND APPROVED:
Alayna Hoang Jill R. Ingram
Alayna Hoang, Interim Director
of Finance/City Treasurer
Jill R. Ingram, City Manager
ATTACHMENTS:
A. Audit Communication Letter (SAS114)
B. Report on Internal Controls (GAS)
C. Comprehensive Annual Financial Report (CAFR)
D. Appropriations (GANN) Limit Final Report
December 16, 2019
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Seal Beach (the “City”) for the year ended
June 30, 2019. Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards and Government Auditing Standards, as well as certain information related to
the planned scope and timing of our audit. We have communicated such information in our letter to you dated
May 13, 2019. Professional standards also require that we communicate to you the following information related to
our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by the City are described in Note 1 to the financial statements. No new accounting policies were
adopted and the application of existing policies was not changed during 2019. We noted no transactions entered
into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management’s knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the City’s financial statements were:
Management’s estimate of the investment fair market value is based on information
provided by US Bank for the City’s investments based on institutional bond quotes or
certificate of deposit pricing. We evaluated the key factors and assumptions used to develop
the investment fair market value in determining that it is reasonable in relation to the
financial statements taken as a whole.
Management’s estimate of the depreciation on capital assets is based on the industry
standard and past experience on actual useful life of the asset groups. We evaluated the key
factors and assumptions used to develop the depreciation on capital assets in determining
that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the net other postemployment benefits (“OPEB”) liability is
based on the actuarial valuation on total OPEB liability and the financial statements on
fiduciary net position of the OPEB plan. We evaluated the key factors and assumptions
used to develop the net OPEB liability in determining that it is reasonable in relation to the
financial statements taken as a whole.
200 E. Sandpointe Avenue, Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850 • www.pungroup.com
3939352 Pun & McGeady_L_final.pdf 1 1/14/14 3:48 PM
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
Page 2
Management’s estimate of the net pension liabilities is based on the proportionate share of
actuarial valuation on total pension liability and the proportionate share of the fiduciary net
position for CalPERS plans. We evaluated the key factors and assumptions used to develop
the net pension liability in determining that it is reasonable in relation to the financial
statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement
users. The most sensitive disclosures affecting the financial statements were:
Note 1 – Summary of Significant Accounting Policies
Note 9 – Defined Benefit Pension Plans
Note 10 – Other Postemployment Benefits (“OPEB”) Plan
Note 12 – Commitments and Contingencies
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of
audit procedures and corrected by management were material, either individually or in the aggregate, to each
opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors report.
We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 16, 2019.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting
principle to City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on
those statements, our professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
Page 3
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards,
with management each year prior to retention as the City’s auditors. However, these discussions occurred in the
normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis, the Budgetary Comparison
Schedules, the Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios, the
Schedule of the Contributions – Pensions, the Schedule of Changes in Net Other Postemployment Benefits Liability
and Related Ratios, and the Schedule of Contributions – Other Postemployment Benefits, which are required
supplementary information (“RSI”) that supplements the basic financial statements. Our procedures consisted of
inquiries of management regarding the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion
or provide any assurance on the RSI.
We were engaged to report on the Combining and Individual Nonmajor Fund Financial Statements, which
accompany the financial statements but are not RSI. With respect to this supplementary information, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United States of
America, the method of preparing it has not changed from the prior period, and the information is appropriate and
complete in relation to our audit of the financial statements. We compared and reconciled the supplementary
information to the underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
We were not engaged to report on the Introductory and Statistical Sections, which accompany the financial
statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit
of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and
is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Santa Ana, California
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Seal Beach, California (the “City”) as of and
for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated December 16, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of
the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
200 E. Sandpointe Avenue, Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850 • www.pungroup.com
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To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
Page 2
164
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Santa Ana, California
December 16, 2019
CCity of Seal Beach
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City of Seal Beach
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
Prepared by the Finance Department
Victoria L. Beatley
Director of Finance/City Treasurer
The City of Seal Beach provides
excellent city services to enhance
the quality of life and to
preserve our small town character.
The City of Seal Beach Values:
Excellent Customer Service
Mutual Respect
Teamwork
Professionalism
Honest & Ethical Behavior
City of Seal Beach
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
Table of Contents
Page
INTRODUCTORY SECTION (UNAUDITED)
Letter of Transmittal ................................................................................................................................................... i
Certificate of Achievement for Excellence in Financial Reporting –
Government Finance Officers Association ........................................................................................................ vi
Organizational Chart ................................................................................................................................................ vii
Principal Officials of the City of Seal Beach .......................................................................................................... viii
FINANCIAL SECTION
Independent Auditors’ Report on the Financial Statements ...................................................................................... 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................. 5
Basic Financial Statements:
Government–Wide Financial Statements:
Statement of Net Position .................................................................................................................................. 16
Statement of Activities ...................................................................................................................................... 18
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet .............................................................................................................................................. 25
Reconciliation of the Governmental Funds Balance Sheet
to the Government–Wide Statement of Net Position ........................................................................... 26
Statement of Revenues, Expenditures,
and Changes in Fund Balances ............................................................................................................. 27
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government–Wide
Statement of Activities ......................................................................................................................... 28
Proprietary Fund Financial Statements:
Statement of Net Position ........................................................................................................................... 30
Statement of Revenues, Expenses, and Changes in Net Position ............................................................... 33
Statement of Cash Flows ............................................................................................................................ 34
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ........................................................................................................... 39
Statement of Change in Fiduciary Net Position .......................................................................................... 40
Index to the Notes to the Basic Financial Statements ......................................................................................... 43
Notes to the Basic Financial Statements .............................................................................................................. 45
City of Seal Beach
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule – General Fund ......................................................................................................... 87
Notes to the Budgetary Comparison Schedule ............................................................................................................... 88
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ........................................ 89
Schedule of Contributions – Pension ............................................................................................................................. 90
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios ......................................... 93
Schedule of Contributions – Other Postemployment Benefits ....................................................................................... 94
Supplementary Information:
Schedule of Revenues, Expenditures, and Change in Fund Balance – Budget and Actual
Capital Projects and Equipment Capital Projects Fund ..................................................................................... 97
Nonmajor Governmental Funds:
Combining Balance Sheet ............................................................................................................................... 101
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 106
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Street Lighting Special Revenue Fund ..................................................................................................... 111
Supplemental Law Enforcement Special Revenue Fund .......................................................................... 112
Detention Center Special Revenue Fund .................................................................................................. 113
Police Asset Forfeiture Special Revenue Fund ......................................................................................... 114
Air Quality Improvement Special Revenue Fund ..................................................................................... 115
Traffic Impact AB 1600 Special Revenue Fund ....................................................................................... 116
State Gasoline Tax Special Revenue Fund ............................................................................................... 117
Measure M2 Special Revenue Fund ......................................................................................................... 118
Community Development Block Grant Special Revenue Fund ............................................................... 119
Police Grant Special Revenue Fund ......................................................................................................... 120
Landscape District Special Revenue Fund ............................................................................................... 121
Heron Pointe Special Revenue Fund ........................................................................................................ 122
Pacific Gateway Special Revenue Fund ................................................................................................... 123
Seal Beach Cable Special Revenue Fund ................................................................................................ 124
Citywide Grants Special Revenue Fund ................................................................................................... 125
City Debt Service Fund ............................................................................................................................. 126
Agency Funds Financial Statements:
Combining Statement of Assets and Liabilities .............................................................................................. 129
Combining Statement of Changes in Assets and Liabilities ........................................................................... 130
City of Seal Beach
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Net Position by Component ......................................................................................................................................... 136
Changes in Net Position ............................................................................................................................................... 138
Fund Balances of Governmental Funds ....................................................................................................................... 142
Changes in Fund Balances of Governmental Funds ..................................................................................................... 144
Assessed Value and Estimated Actual Value of Taxable Property .............................................................................. 146
Direct and Overlapping Property Tax Rates ................................................................................................................ 147
Principal Property Taxpayers ....................................................................................................................................... 148
Property Tax Levies and Collections ........................................................................................................................... 149
Ratios of Outstanding Debt by Type ............................................................................................................................ 150
Ratios of General Bonded Debt Outstanding ............................................................................................................... 152
Schedule of Direct and Overlapping Debt .................................................................................................................... 153
Legal Debt Margin Information ................................................................................................................................... 154
Pledged-Revenue Coverage ......................................................................................................................................... 156
Demographic and Economic Statistics ......................................................................................................................... 157
Top 25 Sales Tax Producers ......................................................................................................................................... 158
Full-Time and Part-Time City Employees by Function ............................................................................................... 159
Operating Indicators by Function ................................................................................................................................. 160
Capital Asset Statistics by Function ............................................................................................................................. 162
OTHER REPORT
Independent Auditors’ Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards .............................................................................. 163
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i
December 16, 2019
Honorable Mayor, Members of the City Council and Citizens of the City of Seal Beach:
City of Seal Beach staff is pleased to submit for your information the Comprehensive Annual
Financial Report (CAFR) of the City of Seal Beach (City) for the fiscal year ended
June 30, 2019. Responsibility for both the accuracy of presented data and the completeness and
fairness of the presentation including all disclosures rests with the City. In our opinion, the data
is accurate in all material aspects, is presented in a manner designed to fairly set forth the
financial position and results of operations of the City, and contains all disclosures necessary to
enable the reader to gain an understanding of the City’s financial affairs.
The financial statements are prepared in accordance with Generally Accepted Accounting
Principals (GAAP) as promulgated by the Government Accounting Standards Board (GASB).
This report consists of management’s representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all
of the information presented in this report. To provide a reasonable basis for making these
presentations, management of the City has established a comprehensive internal control
framework that is designed to protect the City’s assets from loss, theft, or misuse, and to compile
reliable information for the preparation of this report in conformity with GAAP. As
Management, we assert to the best of our knowledge and belief, this financial report is complete
and reliable in all material respects within the reasonable assurance of the internal control
framework.
The City’s financial statements have been audited by The Pun Group, a public accounting firm
fully licensed and qualified to perform audits of the state and local governments within the State
of California. The audit was designed to obtain reasonable assurance about whether the basic
financial statements are free of material misstatement. The independent auditor concluded,
based on the audit, that there was a reasonable basis for rendering an unmodified opinion that the
City of Seal Beach’s financial statements for the year ended June 30, 2019, are fairly presented
in conformity with Generally Accepted Accounting Principles. The independent auditor’s report
is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statement in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with that section. The City’s MD&A can be found immediately following the report
of the independent auditors in the financial section of the CAFR.
ii
PROFILE OF THE CITY
The City of Seal Beach, located on the coast of northwestern Orange County California, was
incorporated on October 25, 1915. The City charter, which was adopted in 1964, established the
form of government, states the powers and duties of the City Council, and establishes various
City Offices.
The City is operated under the City Council/City Manager form of government, and is governed
by a five-member city council elected by district serving four-year alternating terms and who, in
turn elect the Mayor and Mayor Pro Tem from among themselves for a one year term. The
governing council is responsible for policy-making, passing local ordinances, adopting the
budget, appointing committees, and hiring the City Manager and City Attorney.
The City Manager is responsible for carrying out the policies and ordinances of the City Council,
for overseeing the day-to-day operations of the City, and for appointing of all department heads.
The City Clerk is an appointed position and is responsible for maintaining city records and
overseeing elections.
The City provides a full range of services for the citizens utilizing a mix of contracts with other
governmental entities or private companies. The City has its own Police Department and Marine
Safety Department but contracts for fire and paramedic services through the Orange County Fire
Authority (OCFA). The City also operates water and sewer utilities and contracts for refuse and
sanitation treatment services.
The Successor Agency to the Seal Beach Redevelopment Agency (Agency) is a component unit
of the City. Component units are legally separate entities for which the primary government is
financially accountable. The Seal Beach City Council Members, in separate session, serve as the
governing body of the Successor Agency and the City Manager serves as the Executive Director.
History of Seal Beach
The City has an area of 13.23 square miles and sits on the coast as the gateway to Orange County
between the cities of Long Beach and Huntington Beach. In 1901 J.C. Ord, a Civil War veteran
known as “the father of Seal Beach,” hired a 30–mule team to bring his small general store
building from Los Alamitos to Bay City where he set it down at the southwest corner of
crossroads now known as Main Street. J.C. Ord was the first Trustee, the first Mayor,
Postmaster, and the first Judge. His store on Main Street was the Post Office and Court House
and the jail house when it was necessary.
The population in 1915 was 250 persons, including children. Bay City was renamed Seal Beach
in 1916. California Sea Lions, commonly called Seals, were a regular part of the scene along the
coast and a perfect name for the new town.
On January 16, 1916, it was reported in the newspaper, the POST, that Frank Burt, who had
managed the concessions at the recent Panama Pacific Exposition just closing in San Francisco,
was coming to Seal Beach. His purpose was to establish an amusement zone for fun and frolic in
this small beach village. The Jewel City Amusement Company was formed and a new 1,865
foot long pier was constructed in early summer 1916, and is the one of the longest wooden piers
in California. The City became a popular recreation destination in the area, and featured a beach
side amusement park before Disneyland was founded.
iii
During World War II, the U.S. Navy purchased 5,256 acres of land and established the Naval
Ammunition and Net Depot for storage and loading of ammunition for the Pacific Fleet.
The Seal Beach National Wildlife Refuge was established in 1972.
In 1961, Leisure World was built on 541 acres of the Hellman Ranch property and was annexed
in 1964.
The Rossmoor Business Center was remodeled and now called the Shops at Rossmoor and was
annexed by the City in 1962.
In 1964-65, the College Park East and West construction took place.
In 1969, Surfside Colony was annexed into Seal Beach and the City population grew to 24,441
by 1970.
ECONOMIC CONDITIONS
Local economy. Although the focus of this Comprehensive Annual Financial Report is the
financial condition of the City at June 30, 2019, it may be best understood when it is considered
from the broader perspective of the specific environment within which the City operates.
The City is the home of Boeing Company Integrated Defense System international headquarters,
the U.S. Naval Weapons Station, the first Leisure World Retirement Community and the 1,000
acre Seal Beach National Wildlife Refuge. The City’s one and a half miles of beaches and the
public pier attracts more than 2,000,000 visitors each year making recreation an important factor
in the local economy. Seal Beach has a variety of local beach front stores at Main Street which
include several fine dining establishments. Throughout the year many exciting community
events take place in which the residents, and visitors, enjoy and participate.
Long-term financial planning. The City of Seal Beach economy and tax base continue to stay
the course and maintain the present package of core services for our residents, businesses,
visitors, and protect all essential municipal services that contribute to the high quality of life
within the City. However, with the FY 2019-2020 budget cycle some of the long-standing
challenges which City staff has managed to keep at bay became significant. The City had a five
year forecast created which clearly showed that the financial challenges were expected to
continue well into the future. Based upon the flat revenue projections and increasing retirement
costs, staff began to look at various alternatives for revenue generation that would help mitigate
the fiscal challenges.
City staff began working on a path to fiscal sustainability and in July 2018 placed an item on the
City Council agenda to consider a 1% Transaction and Use Tax (TUT). The City Council
approved moving forward with placing a measure on the November 2018 election ballot. The
measure titled Measure BB was a general tax measure with no final end date. If passed the TUT
was anticipated to generate approximately $5 million in new revenue. The measure passed with
almost 60% of the voters in favor of the ballot measure. As a result of the passage, at the time
the budget was adopted there was an expected surplus of approximately $1,456,200.
iv
Public Safety needs have grown, for various reasons, over the last several years. As a result of
the increased need the City Council authorized the hiring of two additional Police Officers in the
FY 2018-2019 Adopted Budget that were to be paid for with money that had been set aside for
an unrelated project in the City. The funds used to pay for the two positions was to repaid as
soon as additional revenue became available. With the passage of Measure BB there was no
need to tap into the project money and the City Council authorized the hiring of three more
Police Officers before the end of the fiscal year.
In FY 2018-2019 the tax revenue increased overall, primarily due to an increase in property
values and the new Transaction and Use Tax revenue from Measure BB. Total Sales Taxes and
Other revenues increased 29% and 17% respectively in the General Fund and Utilities Users Tax
decreased 3% compared with the prior fiscal year. The primary reason for the decrease in
utilities users tax was likely due to the way that the Climate Credits are being used as an offset to
the total revenue used to calculate the UUT.
Notwithstanding the previous explanation, retail sales throughout the City have not been as
robust in the past few years. One of the larger tenants, Toys R Us closed their Seal Beach
location earlier in the year. This closure in addition to vacancies in the same shopping center
have caused a decline in sales tax revenue in that shopping center.
For the upcoming fiscal year, property taxes are expected to increase as the result of continued
improvement in real estate values although not as much in years past given the decline in the
median home price. On the other hand, sales tax is expected to increase as the result of the
passing of a 1% Transactions and Use Tax measure. The collection of the new tax started
April 1, 2019 and the revenue received in the quarter ended June 30, 2019 was higher than
expected.
The Southern California region continues to show signs of improved economic activity.
According to local economic updates, Orange County’s unemployment rate will continue to
remain low and the housing market will continue to show improvement. Consumer spending is
expected to increase slightly as well based upon the most recent consumer confidence reports.
Major initiatives. The City has developed a Mission Statement (inside the front cover), a
Values Statement, and Strategic Plan initiatives. The Strategic Plan goals are approved and/or
affirmed by the City Council twice a year. The Strategic Plan goals and objectives are updated
monthly at a City Council meeting.
The City of Seal Beach will continue to be a major participant in improving ocean water quality
as mandated in the Clean Water Act. The City has a National Pollution Discharge Elimination
System Program operated for this purpose.
The City has been aggressively seeking, and will continue to search for, funding sources from
other governmental agencies or use non-recurring or future developmental revenues to maintain
and improve its infrastructure. The City completed Ten (10) capital projects, including the Pier
Improvement Project, throughout the fiscal year totaling over $9.4 million in value.
v
FINANCIAL POLICIES AND PROCEDURES
Internal control structure. Management of the City is responsible for establishing and
maintaining an adequate internal control structure. Internal accounting controls are designed to
ensure that the assets of the City are protected from loss, theft, or misuse, and that adequate
accounting data are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles.
The internal control structure is designed to provide reasonable, but not absolute, assurance, that
these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of the
control should not exceed the benefits likely to be derived; and (2) the valuation of costs and
benefits require estimates and judgment by management.
Budgetary controls. The annual budget serves as the foundation for the City of Seal Beach’s
financial planning and control. The City Council adopts an annual budget and appropriates the
funds necessary to provide the services and operations for the fiscal year. The City Manager
may make appropriation transfers within and between departments which do not result in an
increase in appropriations. The City of Seal Beach City Council must approve all appropriation
changes that results in an increase in appropriations.
AWARDS
GFOA Award Program – Comprehensive Annual Financial Report
The Government Finance Officers Association of the United States (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Seal Beach for
its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2018. This was
the nineteenth consecutive year that the City has received this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. City staff believes that our
current comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements and we are submitting it to the GFOA again this year for award.
ACKNOWLEDGEMENTS
This report was made possible by the highly dedicated Finance staff with their special efforts and
the teamwork, special thanks to the staff in the Finance Department. Sincere appreciation is also
expressed to the City Council and City Manager for their interest and support, which made this
presentation possible; and finally to the City’s auditing firm of The Pun Group for their
professional assistance.
Respectfully submitted,
Victoria L. Beatley
Director of Finance/City Treasurer
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vi
Exercise Administrative Control
Over All Departments
Agenda Preparation
Administrative Policies
City Council Support
Computer Network
Administration
Intergovernmental Relations
Special Studies/Projects
Policy Analysis
Represents City in all legal matters Risk Management
FINANCE
Business Tax Employee Benefits
Utility Billing/Cashiering Classification/Compensation
Budget/Audit/Grants
Accounts Payable/Payroll
Debt Administration
Treasury/Investments Engineering
Successor Agency Administration Fleet Maintenance
Beach Maintenance
Water/Sewer Maintenance
Capital Projects
Storm Drains
Planning Building Maintenance
Building/Code Enforcement Street Maintenance
Development Review Traffic and Transportation
Community Development Block Grant
Land Use and Coastal Issues
General Plan and Code
Youth/Adult Class Activity
Special Event Permitting
Beach/Pool Safety Sports League/Events
Jr. Lifeguard Program
POLICE SERVICES
CITY CLERK Traffic/Patrol/Detective Services
Records Management Parking Control
Election Management Detention Center
Orange County Fire Authority
DEVELOPMENT
COMMUNITY
Personnel Recruitment
COMMUNITY SERVICES
PUBLIC WORKS
MARINE SAFETY
FIRE SERVICES
Financial Services/Reporting
City of Seal Beach
CITIZENS OF SEAL BEACH
MAYOR AND CITY COUNCIL
HUMAN RESOURCES
Organizational Chart
CITY MANAGER
CITY ATTORNEY
vii
CITY OF SEAL BEACH
CALIFORNIA
Principal Officers
City Council
Thomas Moore, Mayor
Schelly Sustarsic, Mayor Pro Tem
Joe Kalmick, Council Member
Sandra Massa-Lavitt, Council Member
Mike Varipapa, Council Member
Executive Officers
Jill R. Ingram, City Manager
Craig A. Steele, City Attorney
Administrative Personnel
Patrick Gallegos, Assistant City Manager
Joseph Miller IV, Interim Chief of Police
Steve Myrter, Director of Public Works
Victoria L. Beatley, Director of Finance/City Treasurer
Steven Fowler, Interim Director of Community Development
Joe Bailey, Marine Safety Chief
Gloria D. Harper, City Clerk
viii
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Seal Beach, California (the “City”), as
of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise
the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable
to financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
200 E. Sandpointe Avenue, Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850 • www.pungroup.com
3939352 Pun & McGeady_L_final.pdf 1 1/14/14 3:48 PM
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
Page 2
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City as of June 30, 2019, and the respective changes in financial position and,
where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion
and Analysis, the Budgetary Comparison Schedule, the Schedule of the City’s Proportionate Share of the Net
Pension Liability and Related Ratios, the Schedule of Contributions – Pensions, Schedule of Changes in Net Other
Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions – Other Postemployment
Benefits on pages 5 to 12 and 87 to 91, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required
Supplementary Information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with sufficient evidence
to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City’s basic financial statements. The Introductory Section, the Combining and Individual Nonmajor Fund
Financial Statements, the Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual,
and the Statistical Section, are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The Combining and Individual Nonmajor Fund Financial Statements and the Schedule of Revenues, Expenditures,
and Changes in Fund Balances – Budget and Actual are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and the
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
Page 3
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2019, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is
solely to describe the scope of our testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Santa Ana, California
December 16, 2019
4
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City of Seal Beach
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2019
5
Management of the City of Seal Beach is pleased to offer this narrative overview and analysis of the financial
activities of the City for the fiscal year ended June 30, 2019. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of transmittal and the
City’s financial statements.
FINANCIAL HIGHLIGHTS
Assets and deferred outflows of resources included in the City’s combined governmental and business-type
activities exceeded liabilities and deferred inflows of resources by $128.6 million for the fiscal year ended
June 30, 2019, representing an increase of 8.7% in net position from the prior fiscal year. Of this amount, an
increase of $15.1 million was due to the increase in capital assets during the fiscal year. In addition, $3.8
million (unrestricted net position) of the total net position may be used to meet the government’s ongoing
obligations to citizens and creditors in accordance with the City’s budget and fiscal policies. This amount
includes City Council designations of fund balance.
The City’s change in net position was $11.0 million more than last fiscal year. The major reason for the
increase in the change in net position is attributable to the increase in capital assets and pension/other post
employment liabilities related to GASB 68 and GASB 75. In addition, there’s an increase in revenues for
sales tax Measure BB of $1.1 million and use of property revenues of $1.5 million, public safety expenses
increased by $1.6 million public works expenses increased by $0.4 million, and community development
expenses decreased by $0.1 million for the fiscal year ended June 30, 2019.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $26.5 million, representing a decrease of 11.3% from the prior fiscal year. This resulted in an
unassigned fund balance of $11.5 million or 43.4% of the total fund balance, after recording all assigned
fund balances.
At the end of the current fiscal year, unassigned fund balance in the General Fund was $11.9 million or
30.4% of total general fund expenditures and transfers out.
Revenues associated with the City’s business-type activities were $0.2 million more than the $7.4 million in
expenses recorded. During the fiscal year ended June 30, 2010, a water rate study was conducted and as a
result of that study, water rates were reduced in fiscal year 2009-2010 but increased in fiscal year 2010-2011
and for the next three years. The final approved water rate increase occurred in the fiscal year ended
June 30, 2014. A new water and sewer rate study is currently underway.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The
City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2)
fund financial statements and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government-wide financial statements – The government-wide financial statements are designed to provide
readers with a view of the City’s finances as a whole in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference
between the two reported as net position. Increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
City of Seal Beach
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2019
6
The Statement of Activities presents information showing how the City’s net position changed during the fiscal year.
All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the
timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in the future fiscal periods.
Both of the government-wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities
of the City include general government and administration, public safety, development services, public works, and
recreation. The business-type activities of the City include water and sewer operations.
Fund Financial Statements – The fund financial statements provide detailed information about the most significant
funds and other funds – not the City as a whole. Some funds are required to be established by State law and by bond
covenants. However, management established many other funds to help control and manage money for particular
purposes or to verify that all legal requirements for using certain taxes, grants, and other resources are being satisfied.
The City’s three types of funds are governmental, proprietary, and fiduciary funds.
Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how
money flows in and out of those funds and the balances left at year-end that are available for spending. These funds
are reported using an accounting method called modified accrual accounting, which measures cash and all other
financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-
term view of the City’s general government operations and the basic services it provides. Governmental fund
information helps determine whether there are more or fewer financial resources that can be spent in the near future
to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in
the Government-wide financial statements are explained in a reconciliation following each of the Governmental Fund
financial statements.
Proprietary funds – Customer charges for various City services are generally reported in proprietary funds.
Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the
Statement of Activities. In fact, the City’s enterprise funds are comprised of the business-type activities reported in
the government-wide statements but provide more detail and additional information such as a statement of cash
flows.
Fiduciary funds – The City utilizes Fiduciary funds to account for assets held by the City in a trustee capacity, or as
an agent for other governmental entities, private organizations, or individuals. All of the City’s fiduciary activities
are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We
exclude these activities from the City’s Government-wide Financial Statements because the City cannot use these
assets to finance its operations.
Notes to the Financial Statements – The financial statements also include the Notes to the Financial Statements that
provide important narrative details about the information contained in the financial statements. Information
contained in the Notes to the Financial Statements is critical to a reader’s full understanding of the Government-wide
and Fund Financial Statements.
Supplementary Information – In addition to the required elements of the Basic Financial Statements, a
Supplementary Information section is included which contains budgetary and combining schedules that provide
additional details about the City’s non-major Governmental Funds and Fiduciary Funds.
City of Seal Beach
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2019
7
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Our analysis focuses on the City’s net position and changes in net position resulting from the City’s activities.
Net Position – Net position may serve over time as a useful indicator of a government’s financial position. The
City’s combined net position were $128.6 million and $118.4 million for the years ended June 30, 2019 and
June 30, 2018, respectively, as shown in Table 1.
2018
(As Restated) 2019
2018
(As Restated) 2019
2018
(As Restated) 2019
Current and other assets 34,833$ 31,864$ 19,820$ 19,201$ 54,653$ 51,065$
Capital assets 75,710 89,875 38,141 39,068 113,851 128,943
Total assets 110,543 121,739 57,961 58,269 168,504 180,008
Deferred Outflows of Resources 9,951 8,224 1,206 984 11,157 9,208
Long-term liabilities outstanding 44,385 42,817 11,297 10,587 55,682 53,404
Other liabilities 2,529 3,521 1,096 1,761 3,625 5,282
Total liabilities 46,914 46,338 12,393 12,348 59,307 58,686
Deferred Inflows of Resources 1,616 1,600 375 286 1,991 1,886
Net position
Net investment in capital asets 72,667 87,072 31,664 32,937 104,331 120,009
Restricted 4,208 4,825 25 25 4,233 4,850
Unrestricted (4,911) (9,873) 14,710 13,657 9,799 3,784
Total net position 71,964$ 82,024$ 46,399$ 46,619$ 118,363$ 128,643$
(in Thousands)
Activities
Governmental
Table 1
Business-Type
Activities
Total
Activities
Net Position
Investment in capital assets represents assets such as land, buildings, infrastructure, and equipment less any related
outstanding debt used to acquire those assets. Investment in capital assets represents $120.0 million, or 93.3%, of the
total $128.6 million net position, an increase of 15.0% from the prior fiscal year. The City’s capital assets do not
represent a financial resource and consequently are not available for future spending.
Unrestricted position represents the second largest portion of the City’s net position. The City is required by Council
Policy to maintain a minimum of 3 months of operating expenditures to maintain the City’s credit worthiness and to
meet cash flow requirements. As of June 30, 2019, unrestricted net position decreased by 61.4% to $3.8 million from
$9.8 million in the prior fiscal year. Restricted net position represents resources that are legally restricted to specific
uses. These restrictions are generally enforced by external agencies.
As of June 30, 2019, the City reported positive balances in all three categories of net position for both Governmental
and Business-type Activities.
With the exception of contracting the City’s fire services with the Orange County Fire Authority, the City is a full
service city providing residents and visitors with the following functional services:
General Government is comprised of the City Council, City Clerk, City Manager, Human Resources, and Finance.
These departments provide general governance, executive management, records management, risk management,
finance, cash management, accounting, and information technology services. An outside firm appointed by the City
Council provides legal services.
City of Seal Beach
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2019
8
Public Safety is comprised of the Police, Fire, West Cities Police Communications and Marine Safety departments.
The Police and Marine Safety departments provide general law enforcement, oversee animal control services, ocean
lifeguard services, aquatic services, and parking control.
Public Works provides engineering, construction and maintenance of public streets, highways, buildings, beaches,
parks, and related infrastructure, as well as traffic engineering and street lighting.
Development Services is comprised of the Planning and Building and Neighborhood services departments that
provide planning and zoning services, economic development services, and building permits and plan check, and
code enforcement services.
Community Services provides leisure classes, monitors use of community facilities, and sports programs.
Business Enterprise Operations include water and sewer operations and are administered by Public Works.
The following table provides a summary of the City’s operations for the years ended June 30, 2019 and 2018.
2018 2019 2018 2019 2018 2019
Revenues:
Program Revenues:
Charges for services 7,399$ 7,815$ 8,027$ 7,705$ 15,426$ 15,520$
Operating grants and capital contrbutions 2,334 2,588 - - 2,334 2,588
Capital grants and conributions 79 9,778 - - 79 9,778
General Revenues:
Taxes
Property taxes 11,180 11,482 - - 11,180 11,482
Sales taxes 4,304 5,546 - - 4,304 5,546
Transient occupancy taxes 1,667 1,631 - - 1,667 1,631
Other taxes 5,422 5,399 - - 5,422 5,399
Use of money and property 301 1,693 224 326 525 2,019
Other 1,762 2,066 - - 1,762 2,066
Total revenues 34,448 47,998 8,251 8,031 42,699 56,029
Expenses:
General government 6,161 6,479 - - 6,161 6,479
Public safety 19,877 21,497 - - 19,877 21,497
Community development 1,593 1,500 - - 1,593 1,500
Community Services 964 946 - - 964 946
Public works 7,368 7,752 - - 7,368 7,752
Interest on long-term debt 226 143 - - 226 143
Water - - 4,668 4,909 4,668 4,909
Sewer - - 2,540 2,523 2,540 2,523
Total expenses 36,189 38,317 7,208 7,432 43,397 45,749
Excess/(deficiency) before special item (1,741) 9,681 1,043 599 (698) 10,280
Transfers 379 379 (379) (379) - -
Changes in net position (1,362) 10,060 664 220 (698) 10,280
Net position at beginning of year 79,210 71,964 46,831 46,399 126,041 118,363
Restatement of net position (5,884) - (1,096) - (6,980) -
Net position at end of year 71,964$ 82,024$ 46,399$ 46,619$ 118,363$ 128,643$
Table 2
Changes in Net Position
(in Thousands)
Governmental Total
ActivitiesActivities Activities
Business-Type
City of Seal Beach
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2019
9
Analysis of the City’s Operations – The City’s Net Position increased by $10.3 million during Fiscal Year 2018-
2019 or 8.7%, over prior year results.
Governmental Activities experienced an increase of $10.1 million in net position as of June 30, 2019 compared to a
decrease of $1.4 million at June 30, 2018. The primary reason for the increase in net position is attributable to capital
assets of $15.1 million and an increase in public works expense of $.4 million, general government expense of $.3
million, and public safety expense of $1.6 million.
The cost of all governmental activities during the current fiscal year was $38.3 million, $2.1 million higher than last
year. As shown on the statement of activities, those who directly benefited from the programs paid $7.8 million of
the cost, and $12.4 million was financed by contributions and grants received from other governmental organizations.
The remainder of the costs of operations, $18.1 million was subsidized through general City taxes and other revenue
sources. The largest operating cost was comprised of Public Safety, representing 56.1% of total governmental
expenditures compared to 54.9% of total governmental expenditures in fiscal year 2017-2018.
Business-type Activities’ net position increased $.2 million primarily due to the increase in revenue collection.
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
Governmental funds – The objective of the City’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing
requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
As of June 30, 2019 the City’s governmental funds reported combined ending fund balances of $26.5 million.
Approximately $11.5 million, or 43.4%, of this total amount constitutes unassigned fund balance. The remainder of
the fund balance is assigned to indicate that it is not available for new spending because it has already been
committed to pay for encumbrances, loans, prepaid expenses, or advances to other funds.
The General Fund ended the fiscal year with a fund balance of $22.1 million, representing a net decrease of $3.7
million in fund balance compared to the $1.4 million decrease experienced during the prior fiscal year. The primary
reason for the decrease in fund balance was due to a decline in transient occupancy tax and utilities users tax.
Additionally, public safety, general government, and public works expenditures increased by $1.8 million.
Proprietary funds – The City’s proprietary funds financial statements provide the same type of information found in
the government-wide financial statements, but in more detail. Unrestricted net position totaled $6.5 million and $7.1
million for the Water and Sewer funds, respectively. The Water fund decreased by $0.2 million in net position,
mainly due to increase in capital projects expenditures. The increase of $0.4 million thousand in the Sewer fund net
position resulted from revenue collection. Sewer operating fees represent 22% of customer water charges for both
usage and capital costs.
General Fund Budgetary Highlights – There was no amendment of the original and final amended budgeted
revenues.
The difference between the original and final amended budget in General Fund expenditures was an increase of $5.3
million. This difference is due to a variety of purchase order and CIP carryover from the prior fiscal year.
General Government revenues including transfer in came in less than projected in the final budget by approximately
$2.4 million.
City of Seal Beach
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2019
10
General Government expenditures were $7.9 million less than appropriations. This difference is due to transfers out
and budgeted capital projects that were either not started or completed during the fiscal year. These appropriations
were carried forward to the FY 2019-2020 fiscal year.
CAPITAL ASSETS
The City’s capital assets for its governmental and business-type activities as of June 30, 2019, amounts to $128.9
million compared to $113.9 million (net of accumulated depreciation) for FY 2017-2018. This investment in capital
assets includes land, building, equipment, improvements, infrastructure, and construction in progress. Total capital
assets for governmental activities for the current fiscal year increased 18.7% and the City’s investment in capital
assets for business-type activities for the current fiscal year also decreased 4.0%.
2018 2019 2018 2019 2018 2019
Land and land easement 11,420$ 21,220$ -$ -$ 11,420$ 21,220$
Buildings and Improvements 9,768 9,811 - - 9,768 9,811
Machinery and Equipment 199 1,759 609 581 808 2,340
Vehicles 1,760 1,961 289 432 2,049 2,393
Infrastructure 48,498 47,144 35,840 35,217 84,338 82,361
Contruction-in-progress 4,065 7,980 1,403 2,839 5,468 10,819
Totals 75,710$ 89,875$ 38,141$ 39,069$ 113,851$ 128,944$
Governmental
Activities Activities Total
Business-Type
Table 3
Capital Assets At Year-End
(Net of Depreciation, in Thousands)
During FY 2018-19, major capital projects formally completed include:
Pier Improvements, Project No BP1002 – total cost $8.4 million
Senior Center Kitchen Renovation, Project No BG1805 – total cost $25,000
15 First Street Renovation, Project No. BG1808 – total cost $160,000
Seal Way Storm Drain Improvement (design), Project No. SD 1803 – total cost $120,000
Focused Preliminary Design Report - WEPS Drainage Area Tributary, Project No. SD 1802 – total cost $75,000
Focused Preliminary Design Report – CPE Project No. SD 1804 - total cost $95,000
Storm Water Catch Basin Screens – Phase 1, Project No SD1901 – total cost $155,000
Annual Sidewalk/Concrete Repairs, Project No. ST1802 – total cost $75,000
Annual Local Streets Slurry Seal Program / Phase 1, Project No. ST1901: $215,000
Traffic Signals Battery Back-up Installations, Project No. ST1808 - $90,000
Additional information on the City’s capital assets can be found in Note 6 in the Financial Section of this report.
DEBT ADMINISTRATION
As of June 30, 2019, the City had bonded debt, notes payable, compensated absences, claims payable, and capital
leases totaling $10.4 million compared to $12.4 million at the end of FY 2017-2018. The City’s governmental
activities maintained $4.2 million in bonds, capital leases, compensated absences, and claims payable versus $5.8
million last year, representing a decrease of approximately $1.6 million from the previous fiscal year. This decrease
reflects interest and principal payments made during FY 2018-2019.
City of Seal Beach
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2019
11
The City’s business-type activities debt decreased $.4 million from $6.6 million to $6.2 million. Debt in the
business-type activities consists of Sewer Certificates of Participation Payable to provide funds for improvements to
the City’s sewer system, a State revolving loan for the sewer capital improvement project, and compensated
absences.
2018 2019 2018 2019 2018 2019
Compensated absences 1,132$ 1,289$ 132$ 139$ 1,264$ 1,428$
Capital leases 603 531 - - 603 531
Pension Obligation Bonds 1,263 - - - 1,263 -
Lease Revenue Bonds 2,415 1,995 - - 2,415 1,995
Certificates of participations - - 2,270 2,110 2,270 2,110
Sewer Capital Improv. Proj.- - 4,226 3,947 4,226 3,947
Self-insured claims payable 388 423 - - 388 423
Total 5,801$ 4,238$ 6,628$ 6,196$ 12,429$ 10,434$
Table 4
Outstanding Debt, At Year-End
(in Thousands)
Governmental
Activities
Business-Type
Activities Total
Additional information on the City’s long-term debt can be found in note 6 in the Financial Section of the report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The City of Seal Beach economy and tax base continue to support the present package of core services for our
residents, businesses, and visitors and protect all essential municipal services that contribute to the high quality of life
within the City.
In FY 2018-2019 the tax revenue increased and overall revenue was projected to increased less than $100,000 in the
General Fund. However, overall revenues increased by $1.9 million. The primary reason was the receipt of $1.1
million from the new Transaction and Use Tax and the receipt of some one-time revenue.
For the upcoming fiscal year, revenues are expected to improve significantly. The passage of the Measure BB is
anticipated to generate approximately $4.7 million in new transactions and use tax revenue. Property taxes are
expected to increase as well primarily from continued improvement in assessed value and new home sales with the
building of new subdivision of 30 homes.
The Southern California region, as well as the entire country, continues to show signs of stable economic activity.
According to local economic updates, Orange County’s unemployment rate will continue to decline and the housing
market will continue to show improvement. Consumer spending is expected to increase slightly as well.
The City prepared an annual budget for FY 2018-2019. The one year budget represents a General Fund deficit of
operating expenditures over operating revenues (excluding capital projects) in each fiscal year. Expenditures of the
City were budgeted at the current level of service with capital improvement projects to be supported primarily by the
City’s General Fund reserves. The revenue projections for the FY 2018–2019 budget year were very conservative
due to the unknown impacts from the Federal tax reform on the local economy. The City will continue to monitor
revenue streams throughout the coming years and will adjust spending levels as deemed necessary.
City of Seal Beach
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2019
12
The most significant issues facing the City are the aged condition of the City’s infrastructure. The City has
completed and adopted numerous infrastructure planning documents e.g. (Water Master Plan, Sewer Master Plan,
Master Plan of Drainage, Facilities Master Plan, and Pavement Management Plan). These plans identify well over
$160 million in needed improvements throughout the City. The City annually adopts a 5 year Capital Improvement
Program (CIP) that strategically plans construction of these needed improvements. The FY 2019-20 CIP
recommends $56.7 million in improvements over the next 5 years. The 5 Year Capital Improvement Program
identifies needs in the following areas: Beach and Pier ($1.0M), Buildings and Facilities ($17.1M), Sewer System
($7.8M), Storm Drain System ($1.2M), Streets and Transportation ($9.7M) and Water System ($4.5M).
REQUEST FOR INFORMATION
This financial report is designed to provide the City’s citizens, taxpayers, customers, investors, and creditors with a
general overview of the City’s finances and to demonstrate the City’s accountability for the funds it receives. If you
have questions about this report or need additional financial information, contact the City’s Finance Department at
211 8th Street, Seal Beach, CA 90740-6379 or call (562) 431-2527.
BASIC FINANCIAL STATEMENTS
13
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14
GOVERNMENT-WIDE FINANCIAL STATEMENTS
15
Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:
Cash and investments 26,155,006$ 17,385,637$ 43,540,643$
Receivables:
Accounts 2,435,140 1,552,173 3,987,313
Taxes 2,465,144 - 2,465,144
Interest 100,322 - 100,322
Prepaid items 33,795 6,333 40,128
Due from other governments 14,444 - 14,444
Total Current Assets 31,203,851 18,944,143 50,147,994
Noncurrent Assets:
Restricted cash with fiscal agent 659,873 25,082 684,955
Advance to Successor Agency - 231,429 231,429
Capital assets:
Capital assets, not being depreciated 29,200,063 2,838,555 32,038,618
Capital assets, being depreciated, net 60,675,158 36,229,766 96,904,924
Total capital assets, net 89,875,221 39,068,321 128,943,542
Total Noncurrent Assets 90,535,094 39,324,832 129,859,926
Total Assets 121,738,945 58,268,975 180,007,920
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 120,703 120,703
Pension related items 7,523,899 716,043 8,239,942
Other postemployment benefits related items 699,903 147,130 847,033
Total Deferred Outflows of Resources 8,223,802 983,876 9,207,678
Primary Government
City of Seal Beach
Statement of Net Position
June 30, 2019
See accompanying Notes to the Basic Financial Statements
16
Governmental Business-Type
Activities Activities Total
LIABILITIES
Current Liabilities:
Accounts payable 1,935,496 1,391,437 3,326,933
Accrued liabilities 531,375 80,388 611,763
Accrued interest 14,776 62,044 76,820
Unearned revenues 18,550 - 18,550
Deposits payable 744,039 33,141 777,180
Retention payable 277,226 194,128 471,354
Long-term liabilities, due within one year 945,883 506,858 1,452,741
Long-term liabilities:
Long-term liabilities, due in more than one year 3,292,293 5,689,083 8,981,376
Net pension liabilities 33,349,308 3,291,261 36,640,569
Net other postemployment benefits liabilities 5,229,427 1,099,300 6,328,727
Total Liabilities 46,338,373 12,347,640 58,686,013
DEFERRED INFLOWS OF RESOURCES
Pension related items 1,223,435 206,982 1,430,417
Other postemployment benefits related items 376,964 79,242 456,206
Total Deferred Inflows of Resources 1,600,399 286,224 1,886,623
NET POSITION
Net investment in capital assets 87,071,592 32,937,448 120,009,040
Restricted for:
Community development projects 718,478 - 718,478
Public safety 146,771 - 146,771
Community services 393,937 - 393,937
Public works 2,906,353 - 2,906,353
Debt service 654,454 25,082 679,536
Other 5,419 - 5,419
Total restricted 4,825,412 25,082 4,850,494
Unrestricted (9,873,029) 13,656,457 3,783,428
Total Net Position 82,023,975$ 46,618,987$ 128,642,962$
City of Seal Beach
Statement of Net Position (Continued)
June 30, 2019
Primary Government
See accompanying Notes to the Basic Financial Statements
17
Capital Grants
Charges for Operating Grants and
Expenses Services and Contributions Contributions Total
Functions/Programs
Governmental Activities:
General government 6,479,347$ 1,913,201$ 6,151$ -$ 1,919,352$
Public safety 21,497,362 1,907,577 242,924 - 2,150,501
Community development 1,499,652 597,318 611,705 9,777,583 10,986,606
Community services 945,425 840,428 - - 840,428
Public works 7,752,351 2,556,857 1,727,674 317 4,284,848
Interest and fiscal charges 143,040 - - - -
Total Governmental Activities 38,317,177 7,815,381 2,588,454 9,777,900 20,181,735
Business-Type Activities:
Water Utility 4,909,193 4,851,274 - - 4,851,274
Sewer Utility 2,523,366 2,854,208 - - 2,854,208
Total Business-Type Activities 7,432,559 7,705,482 - - 7,705,482
Total Primary Government 45,749,736$ 15,520,863$ 2,588,454$ 9,777,900$ 27,887,217$
Program Revenues
City of Seal Beach
Statement of Activities
For the Year Ended June 30, 2019
See accompanying Notes to the Basic Financial Statements
18
Governmental Business-Type
Activities Activities Total
Functions/Programs
Governmental Activities:
General government (4,559,995)$ -$ (4,559,995)$
Public safety (19,346,861) - (19,346,861)
Community development 9,486,954 - 9,486,954
Community services (104,997) - (104,997)
Public works (3,467,503) - (3,467,503)
Interest and fiscal charges (143,040) - (143,040)
Total Governmental Activities (18,135,442) - (18,135,442)
Business-Type Activities:
Water Utility - (57,919) (57,919)
Sewer Utility - 330,842 330,842
Total Business-Type Activities - 272,923 272,923
Total Primary Government (18,135,442) 272,923 (17,862,519)
General Revenues:
Taxes:
Property taxes, levied for general purpose 11,481,535 - 11,481,535
Sales taxes 5,546,264 - 5,546,264
Franchise taxes 1,097,774 - 1,097,774
Utility users tax 4,061,031 - 4,061,031
Transient occupancy taxes 1,631,445 - 1,631,445
Other taxes 227,978 - 227,978
Motor vehicle in lieu- unrestricted 12,473 - 12,473
Use of money and property 1,692,720 326,036 2,018,756
Other 2,065,583 - 2,065,583
Transfers 378,500 (378,500) -
Total General Revenues and Transfers 28,195,303 (52,464) 28,142,839
Changes in Net Position 10,059,861 220,459 10,280,320
Net Position:
Beginning of Year 71,964,114 46,398,528 118,362,642
End of Year 82,023,975$ 46,618,987$ 128,642,962$
Net (Expense) Revenue and Changes in Net Positions
City of Seal Beach
Statement of Activities (Continued)
For the Year Ended June 30, 2019
See accompanying Notes to the Basic Financial Statements
19
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20
FUND FINANCIAL STATEMENTS
21
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22
GOVERNMENTAL FUND FINANCIAL STATEMENTS
23
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24
Capital Projects
and Equipment Nonmajor
Capital Projects Governmental
General Fund Funds Total
ASSETS
Cash and investments 20,740,076$ 903,765$ 3,966,586$ 25,610,427$
Receivables:
Accounts 2,207,138 - 228,002 2,435,140
Taxes 2,423,192 - 41,952 2,465,144
Interest 99,364 - 958 100,322
Prepaid items 33,795 - - 33,795
Due from other governments - - 14,444 14,444
Due from other funds 168,244 - - 168,244
Restricted assets:
Cash and investments with fiscal agents 5,419 - 654,454 659,873
Total assets 25,677,228$ 903,765$ 4,906,396$ 31,487,389$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 903,412$ 900,650$ 25,369$ 1,829,431$
Accrued liabilities 520,051 - 11,324 531,375
Unearned revenues - - 18,550 18,550
Deposits payable 744,039 - - 744,039
Due to other funds - - 168,244 168,244
Retentions payable - 277,226 - 277,226
Total liabilities 2,167,502 1,177,876 223,487 3,568,865
Deferred Inflows of Resources:
Unavailable revenues 1,395,638 - 14,444 1,410,082
Fund Balances:
Nonspendable 33,795 - - 33,795
Restricted 5,419 - 4,819,993 4,825,412
Assigned 10,152,504 - - 10,152,504
Unassigned (deficit)11,922,370 (274,111) (151,528) 11,496,731
Total fund balances 22,114,088 (274,111) 4,668,465 26,508,442
Total liabilities and fund balances 25,677,228$ 903,765$ 4,906,396$ 31,487,389$
City of Seal Beach
Balance Sheet
June 30, 2019
Governmental Funds
See accompanying Notes to the Basic Financial Statements
25
Total Fund Balances - Total Governmental Funds 26,508,442$
Nondepreciable 29,200,063$
Depreciable, net of $929,893 reported in Internal Service Fund 59,745,265 88,945,328
Bonds payable (1,995,000)$
Loans payable (531,403)
Claims and judgments (423,347)
Compensated absences (1,288,426) (4,238,176)
(14,776)
Pension related deferred outflows of resources 7,523,899$
Aggregate net pension liability (33,349,308)
Pension related deferred inflows of resources (1,223,435) (27,048,844)
OPEB related deferred outflows of resources 699,903$
Net OPEB liability (5,229,427)
OPEB related deferred inflows of resources (376,964) (4,906,488)
1,410,082
1,368,407
Net Position of Governmental Activities 82,023,975$
City of Seal Beach
Reconciliation of the Governmental Funds Balance Sheet to the
June 30, 2019
Government-wide Statement of Net Position
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:
Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All
liabilities, both current and long-term, are reported in the Statement of Net Position:
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the
Governmental Funds Balance Sheet.
Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment
replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental
activities in the Government-Wide Statement of Net Position.
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be
considered available. The Availability criteria does not apply to the government-Wide Financial Statements and, therefore,
the revenue is recognized when eligibility requirements are met and earned.
Net other postemployment benefits liabilities and the related deferred outflows of resources and deferred inflows of resources
are not due and payable in the current period or not available for current expenditures and are not reported in the
governmental fund financial statements:
Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a
liability in the governmental funds.
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and
payable in the current period or not available for current expenditures and are not reported in the governmental fund financial
statements:
See accompanying Notes to the Basic Financial Statements
26
Capital Projects
and Equipment Other
General Capital Projects Governmental
Fund Fund Funds Total
Revenues:
Taxes 24,058,500$ -$ 1,844,580$ 25,903,080$
Licenses and permits 1,416,737 - - 1,416,737
Intergovernmental 312,884 - 545,039 857,923
Charges for services 4,756,632 - 121,773 4,878,405
Use of money and property 1,684,303 - 88,472 1,772,775
Fines and forfeitures 946,048 - - 946,048
Contributions 5,994 - 40,000 45,994
Miscellaneous 2,319,864 - - 2,319,864
Total revenues 35,500,962 - 2,639,864 38,140,826
Expenditures:
Current:
General government 6,086,226 - 83,264 6,169,490
Public safety 18,828,910 - 411,698 19,240,608
Community development 1,039,200 - 406,825 1,446,025
Community services 942,804 - - 942,804
Public works 4,928,457 - 231,916 5,160,373
Capital outlay - 7,378,774 - 7,378,774
Debt service:
Principal retirement 71,905 - 1,683,000 1,754,905
Interest and fiscal charges 19,906 - 132,957 152,863
Total expenditures 31,917,408 7,378,774 2,949,660 42,245,842
Revenues over (under) expenditures 3,583,554 (7,378,774) (309,796) (4,105,016)
Other Financing Sources (Uses):
Transfers in 509,600 7,107,919 1,764,463 9,381,982
Transfers out (7,797,600) - (865,857) (8,663,457)
Total other financing sources (uses):(7,288,000) 7,107,919 898,606 718,525
Net change in fund balances (3,704,446) (270,855) 588,810 (3,386,491)
Fund Balances:
Beginning of Year 25,818,534 (3,256) 4,079,655 29,894,933
End of Year 22,114,088$ (274,111)$ 4,668,465$ 26,508,442$
City of Seal Beach
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2019
See accompanying Notes to the Basic Financial Statements
27
Net Change in Fund Balances - Total Governmental Funds (3,386,491)$
Capital assets used in governmental activities are not financial resources and therefore are not
reported in governmental funds.
Capital outlay, net of $246,481 reported in Internal Service Fund 7,423,458$
Donated and transferred capital asets 9,846,541
Depreciation, net of $268,958 reported in Internal Service Fund (2,797,656)
Net effect on disposal of capital assets (101,979) 14,370,364
Repayment of debt principal is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the Statement of Net Position.1,754,905
Interest expense on long-term debt is reported in the Statement of Activities, but do not require the
use of current financial resources. Therefore, interest is reported as an expenditure in
governmental funds. This amount represents the change in accrued interest from the prior year.9,823
Claims and judgment changes reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in governmental funds.(35,876)
Compensated absences were reported in the Government-Wide Statement of Activities, but they
did not require the use of current financial resources. Therefore, compensated absences were not
reported as expenditures in the governmental funds.(156,167)
Certain pension income (expenses) reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in governmental funds,
net of contribution made during the measurement period in the amount of $2,781,394.(1,848,640)
Certain other postemployment benefits income (expenses) reported in the Statement of Activities
do not require the use of current financial resources and, therefore, are not reported as expenditures
in governmental funds, net of contribution made during the measurement period in the amount of
$699,903.141,753
Revenues reported as unavailable revenue in the governmental funds and recognized in the
Statement of Activities. (2,490)
Internal Service Funds are used by management to charge the costs of certain activities, such as
insurance and equipment replacement, to individual funds. The net revenue of the Internal Service
Funds is reported in governmental activities.(787,320)
Change in Net Position of Governmental Activities 10,059,861$
Governmental activities in the Statement of Activities were reported differently because:
City of Seal Beach
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,
For the Year Ended June 30, 2019
and Changes in Fund Balances to the Government-Wide Statement of Activities
See accompanying Notes to the Basic Financial Statements
28
PROPRIETARY FUND FINANCIAL STATEMENTS
29
Governmental
Activities
Vehicle
Replacement
Internal
Water Utility Sewer Utility Total Service Fund
ASSETS
Current Assets:
Cash and investments 9,015,804$ 8,369,833$ 17,385,637$ 544,579$
Accounts receivable 1,094,560 457,613 1,552,173 -
Prepaid items 3,333 3,000 6,333 -
Total Current Assets 10,113,697 8,830,446 18,944,143 544,579
Noncurrent Assets:
Restricted cash 25,082 - 25,082
Advance to Successor Agency - 231,429 231,429 -
Capital assets, not being depreciated 1,949,875 888,680 2,838,555 -
Capital assets, net of accumulated depreciation 15,123,331 21,106,435 36,229,766 929,893
Total capital assets 17,073,206 21,995,115 39,068,321 929,893
Total Noncurrent Assets 17,098,288 22,226,544 39,324,832 929,893
Total Assets 27,211,985 31,056,990 58,268,975 1,474,472
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 120,703 120,703 -
Pension related items 408,600 307,443 716,043 -
Other postemployment benefits related items 85,635 61,495 147,130 -
Total Deferred Outflows of Resources 494,235 489,641 983,876 -
(Continued)
June 30, 2019
Proprietary Funds
Statement of Net Position
City of Seal Beach
Business-Type Activities
Enterprise Funds
See accompanying Notes to the Basic Financial Statements
30
Governmental
Activities
Vehicle
Replacement
Internal
Water Utility Sewer Utility Total Service Fund
LIABILITIES
Current Liabilities:
Accounts payable 1,230,178 161,259 1,391,437 106,065
Accrued liabilities 48,514 31,874 80,388 -
Accrued interest 880 61,164 62,044 -
Deposits payable 30,277 2,864 33,141 -
Retention payable 111,873 82,255 194,128 -
Unearned revenue - - - -
Compensated absences, due within one year 32,185 20,952 53,137 -
Long-term debt, due within one year 89,493 364,228 453,721 -
Total Current Liabilities 1,543,400 724,596 2,267,996 106,065
Noncurrent Liabilities:
Compensated absences, due in more than one year 47,958 37,398 85,356 -
Long-term debt, due in more than one year 693,571 4,910,156 5,603,727 -
Aggregate net pension liabilities 1,878,284 1,412,977 3,291,261 -
Net other postemployment benefits liabilities 639,834 459,466 1,099,300 -
Total Noncurrent Liabilities 3,259,647 6,819,997 10,079,644 -
Total Liabilities 4,803,047 7,544,593 12,347,640 106,065
DEFERRED INFLOW OF RESOURCES
Pension related items 118,122 88,860 206,982 -
Other postemployment benefits related items 46,122 33,120 79,242 -
Total Deferred Inflows of Resources 164,244 121,980 286,224 -
NET POSITION
Net investment in capital assets 16,178,269 16,759,179 32,937,448 929,893
Restricted 25,082 - 25,082 -
Unrestricted 6,535,578 7,120,879 13,656,457 438,514
Total Net Position 22,738,929$ 23,880,058$ 46,618,987$ 1,368,407$
Enterprise Funds
City of Seal Beach
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2019
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
31
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32
Governmental
Activities
Vehicle
Replacement
Internal
Water Utility Sewer Utility Total Service
OPERATING REVENUES:
Sales and service charges 4,845,365$ 2,853,690$ 7,699,055$ -$
Miscellaneous 5,909 518 6,427 -
Total Operating Revenues 4,851,274 2,854,208 7,705,482 -
OPERATING EXPENSES:
Personnel expenses 1,394,505 848,459 2,242,964 -
Operating expenses 2,961,309 204,076 3,165,385 17,262
Amortization and depreciation expenses 538,355 1,083,990 1,622,345 268,958
Total Operating Expenses 4,894,169 2,136,525 7,030,694 286,220
OPERATING INCOME (LOSS)(42,895) 717,683 674,788 (286,220)
NONOPERATING INCOME (LOSS):
Interest revenues 168,595 157,441 326,036 -
Interest expenses (15,024) (190,492) (205,516) -
Capital contributions - - - (174,736)
Gain (loss) on sale of assets - (196,349) (196,349) 13,661
Total Nonoperating Income (Loss)153,571 (229,400) (75,829) (161,075)
(LOSS) BEFORE TRANSFERS 110,676 488,283 598,959 (447,295)
TRANSFERS:
Transfers out (324,500) (54,000) (378,500) (340,025)
Total Transfers (324,500) (54,000) (378,500) (340,025)
CHANGES IN NET POSITION (213,824) 434,283 220,459 (787,320)
NET POSITION:
Beginning of the Year 22,952,753 23,445,775 46,398,528 2,155,727
End of the Year 22,738,929$ 23,880,058$ 46,618,987$ 1,368,407$
Enterprise Funds
Business-Type Activities
For the Year Ended June 30, 2019
Statement of Revenues, Expenses, and Changes in Net Position
City of Seal Beach
Proprietary Funds
See accompanying Notes to the Basic Financial Statements
33
Governmental
Activities
Vehicle
Replacement
Water Utility Sewer Utility Total Internal Service
CASH FLOWS FROM OPERATING
ACTIVITIES:
Cash received from customers and users 4,787,885$ 2,835,847$ 7,623,732$ -$
Cash paid to suppliers for goods and services (2,530,052) (61,670) (2,591,722) 2,101
Cash paid to employees for services (1,398,396) (987,588) (2,385,984) -
Cash received from others 5,909 518 6,427 -
Net cash provided by
operating activities 865,346 1,787,107 2,652,453 2,101
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash transfers out (324,500) (54,000) (378,500) (340,025)
Net cash used in noncapital financing
activities (324,500) (54,000) (378,500) (340,025)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (1,246,550) (959,845) (2,206,395) (246,481)
Proceeds from disposal of assets - - - 21,525
Principal paid on capital debt (89,491) (349,306) (438,797) -
Interest paid on debt (15,194) (194,237) (209,431) -
Net cash used in capital and related
financing activities (1,351,235) (1,503,388) (2,854,623) (224,956)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Interest received 168,595 157,441 326,036 -
Receipt from collection of advances - 242,649 242,649 -
Net cash provided by investing activities 168,595 400,090 568,685 -
Net change in cash and cash equivalents (641,794) 629,809 (11,985) (562,880)
CASH AND CASH EQUIVALENTS:
Beginning of year 9,682,680 7,740,024 17,422,704 1,107,459
End of year 9,040,886$ 8,369,833$ 17,410,719$ 544,579$
RECONCILIATION OF CASH AND CASH
EQUIVALENTS:
Cash and investments 9,015,804$ 8,369,833$ 17,385,637$ 544,579$
Restricted cash 25,082 - 25,082 -
Total cash and cash equivalents 9,040,886$ 8,369,833$ 17,410,719$ 544,579$
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES:
Transfer of capital assets -$ -$ -$ (174,736)$
(Continued)
City of Seal Beach
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2019
Business-Type Activities
Enterprise Funds
See accompanying Notes to the Basic Financial Statements
34
Governmental
Activities
Vehicle
Replacement
Water Utility Sewer Utility Total Internal Service
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (Used in)
Operating Activities:
Operating income (loss) (42,895)$ 717,683$ 674,788 (286,220)$
Adjustments to reconcile operating income
(loss) to net cash provided by (used in)
operating activities:
Amortization and depreciation expenses 538,355 1,083,990 1,622,345 268,958
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables (59,157) (16,618) (75,775) -
(Increase)/decrease in prepaid items (3,333) (3,000) (6,333) -
(Increase)/decrease in deferred outflows of
resources related to pension 95,373 113,512 208,885 -
(Increase)/decrease in deferred outflows of
resources related to OPEB 782 26 808 -
Increase/(decrease) in accounts payable 434,590 145,406 579,996 19,363
Increase/(decrease) in accrued liabilities 8,167 277 8,444 -
Increase/(decrease) in deposits payable 9,842 714 10,556 -
Increase/(decrease) in unearned revenue (8,165) (1,939) (10,104) -
Increase/(decrease) in compensated absences 5,998 578 6,576 -
Increase/(decrease) in net pension liabilities (10,035) (164,310) (174,345) -
Increase/(decrease) in net OPEB liabilities (63,293) (41,100) (104,393) -
Increase/(decrease) in deferred inflows of
resources related to pension (76,894) (74,034) (150,928) -
Increase/(decrease) in deferred inflows of
resources related to OPEB 36,011 25,922 61,933 -
Net cash provided by operating
activities 865,346$ 1,787,107$ 2,652,453$ 2,101$
Enterprise Funds
City of Seal Beach
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2019
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
35
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36
FIDUCIARY FUND FINANCIAL STATEMENTS
37
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38
Successor Agency
Agency Private-purpose
Funds Trust Fund
ASSETS
Cash and investments 347,638$ 879,894$
Receivables:
Accounts 5,051 3,176
Interest - 2
Restricted investments with fiscal agent 965,391 700,525
Total Assets 1,318,080$ 1,583,597
LIABILITIES
Current liabilities:
Accrued interest -$ 22,798$
Deposit payable 77,062 -
Due to bondholders 1,241,018 -
Advances from the City's Sewer Fund, due within one year - 233,166
Bonds payable, due within one year - 605,000
Total current liabilities 1,318,080$ 860,964
Noncurrent liabilities:
Bonds payable, due in more than one year 685,000
Total noncurrent liabilities 685,000
Total liabilities 1,545,964
NET POSITION
Held in trust for Successor Agency 37,633
Net position held in trust for Successor Agency 37,633$
June 30, 2019
Statement of Fiduciary Net Position
City of Seal Beach
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements
39
Successor Agency
Private-purpose
Trust Fund
ADDITIONS:
Redevelopment property tax trust fund 1,198,637$
Investment income 15,290
Total Additions 1,213,927
DEDUCTIONS:
Administrative expenses 380,563
Interest expense 77,069
Depreciation expenses 3,580
Capital contribution to the City of Seal Beach 46,541
Other expense 3,787
Total Deductions 511,540
Change in Net Position 702,387
NET POSITION:
Beginning of Year (664,754)
End of Year 37,633$
City of Seal Beach
Statement of Change in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2019
See accompanying Notes to the Basic Financial Statements.
40
41
NOTES TO THE BASIC FINANCIAL STATEMENTS
42
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City of Seal Beach
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
43
Page
Note 1 – Summary of Significant Accounting Policies ..................................................................................... 45
A. Financial Reporting Entity .............................................................................................................. 45
B. Basis of Accounting and Measurement Focus ................................................................................ 46
C. Cash and Investments ..................................................................................................................... 48
D. Fair Value Measurement ................................................................................................................. 49
E. Property Taxes Receivable ............................................................................................................. 49
F. Prepaid Items .................................................................................................................................. 49
G. Interfund Transactions .................................................................................................................... 49
H. Capital Assets ................................................................................................................................. 50
I. Unearned and Unavailable Revenue ............................................................................................... 50
J. Compensated Absences Payable ..................................................................................................... 50
K. Claims Payable ............................................................................................................................... 51
L. Pensions .......................................................................................................................................... 51
M. Other Postemployment Benefits ..................................................................................................... 51
N. Deferred Outflows/Inflows of Resources ....................................................................................... 52
O. Long-Term Liabilities ..................................................................................................................... 52
P. Net Position .................................................................................................................................... 52
Q. Fund Balances ................................................................................................................................. 52
R. Spending Policy .............................................................................................................................. 53
S. Use of Estimates ............................................................................................................................. 53
T. Tax Abatement ................................................................................................................................ 53
Note 2 – Cash and Investments .......................................................................................................................... 54
A. Demand Deposits ............................................................................................................................ 54
B. Investments Authorized by the California Government Code and the
City's Investment Policy ............................................................................................................ 54
C. Investments Authorized by Debt Agreements ................................................................................ 55
D. Fair Value Measurement ................................................................................................................. 55
E. Risk Disclosures ............................................................................................................................. 56
F. Investment in Local Agency Investment Fund (“LAIF”) ............................................................... 58
Note 3 – Interfund Transactions ........................................................................................................................ 58
A. Due From/To Other Funds .............................................................................................................. 58
B. Transfers ......................................................................................................................................... 58
Note 4 – Advance to Successor Agency .............................................................................................................. 59
Note 5 – Capital Assets ........................................................................................................................................ 60
Note 6 – Long-Term Liabilities .......................................................................................................................... 62
A. Governmental Activities ................................................................................................................. 62
B. Business-Type Activities ................................................................................................................ 64
C. Fiduciary Activities ........................................................................................................................ 66
City of Seal Beach
Index to the Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
44
Page
Note 7 – Non-City Obligations ............................................................................................................................ 67
A. Heron Pointe Community Facilities District No 2002-01 .............................................................. 67
B. Pacific Gateway Business Center Community Facilities District No 2005-01 .............................. 67
Note 8 – Risk Management and Self Insurance Program ................................................................................ 67
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement ...................................... 67
B. Self-Insurance Programs of the Authority ...................................................................................... 67
C. Purchased Insurance ....................................................................................................................... 68
D. Adequacy of Protection .................................................................................................................. 69
E. Claims Activity ............................................................................................................................... 69
Note 9 – Defined Benefit Pension Plans .............................................................................................................. 70
Note 10 – Other Postemployment Benefits (“OPEB”) Plan .............................................................................. 77
Note 11 – Classification of Fund Balances .......................................................................................................... 81
Note 12 – Commitments and Contingencies ....................................................................................................... 82
A. Commitments ................................................................................................................................... 82
B. Contingencies .................................................................................................................................. 82
C. Grants ............................................................................................................................................... 82
Note 13 – Individual Fund Disclosure ................................................................................................................. 83
A. Expenditures in Excess of Appropriation ........................................................................................ 83
B. Deficit Net Positions and Fund Balances......................................................................................... 83
City of Seal Beach
Notes to the Basic Financial Statements
For the Year Ended June 30, 2019
45
Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Seal Beach, California, (the “City”) have been prepared in accordance
with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental
agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for
establishing governmental accounting and financial reporting principles. The following is a summary of the City’s
significant policies:
A. Financial Reporting Entity
The City was incorporated on October 27, 1915, under the laws of the State of California and enjoys all the rights
and privileges applicable to a charter city. It is governed by an elected five-member council. As required by U.S.
GAAP these financial statements present the City (the primary government and its component units). The
component unit discussed below is included in the reporting entity because of its operational or financial
relationships with the City.
In evaluating how to define the City for financial reporting purposes, management has considered all potential
component units. The primary criteria for including a potential component unit within the reporting entity are the
governing body’s financial accountability and a financial benefit or burden relationship and whether it is
misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden
relationship, if it appoints a voting majority of an organization’s governing body and it is able to impose its will
on the organization, or if there is a potential for the organization to provide specific financial benefits to, or
impose specific financial burdens on the primary government. A primary government may also be financially
accountable if an organization is fiscally dependent on the primary government regardless of whether the
organization has a separately elected governing board, a governing board appointed by a higher level of
government, or a jointly appointed board, and there is a potential for the organization to provide specific financial
benefits to, or impose specific financial burdens on the primary government.
Blended Component Units:
Management determined that the following entities should be reported as blended component units based on the
criteria above. Although the following entities are legally separate from the City, they have been “blended” as
though they are part of the City because the component units’ governing bodies are substantially the same as the
City’s and there is a financial benefit or burden relationship between the City and the component units’; and
management of the City has operational responsibilities for the component units; and/or the component units
provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits
the City, even though they do not provide services directly to it.
The Seal Beach Public Financing Authority (the “Authority”) was formed May 8, 2000, pursuant to Articles 1
through 4 of Chapter 5, Division 7, Title 1 of the California Government Code, to create a joint exercise of
powers authority between the City and the former Seal Beach Redevelopment Agency. The City Council of the
City is the governing board. Management of the primary government has operational responsibility for the
blended component unit. The Authority was formed to undertake the financing of public capital improvements.
On June 12, 2017, the City Council adopted Resolution No. 6741, to create the Parking Authority, and the
Parking Authority became a new member to the Authority. On the same date, the Successor Agency Board of
Directors adopted Resolution No. SA 17-3, approving the Successor Agency’s withdrawal of its Authority
membership. On June 28, 2017, the Oversight Board to the Successor Agency adopted Resolution No. OB17-03,
approving such withdrawal. Resolution No. OB17-03 became effective upon the State of California Department
of Finance’s approval, received by the Successor Agency on August 18, 2017.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
46
Note 1 – Summary of Significant Accounting Policies (Continued)
A. Financial Reporting Entity (Continued)
Blended Component Units (Continued):
The Seal Beach Parking Authority (“the Parking Authority”) was formed on June 12, 2017, pursuant to the Part 2
of Division 18 of the California Streets and Highway Code. The Parking Authority is governed by the Board of
Director which is the City Council of the City of Seal Beach.
The Seal Beach Cable Communications Foundation (the “Foundation”) was organized under the laws of the State
of California on August 27, 1984, to foster and promote civic advancement through activities related to cable
communications, community promotion, and other public services deemed appropriate by the foundation. The
Foundation is governed by a board of directors consisting of seven members, all appointed by the City Council of
the City of Seal Beach.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting
entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that
comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources
are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and
the means by which spending activities are controlled.
Government-Wide Financial Statements
The government-wide financial statements are presented on an “economic resources” measurement focus and the
accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities, and
deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities,
are included in the accompanying statement of net position. The statement of activities presents changes in net
position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned
while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are
not included in these statements.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal
balances in the statement of net position have been eliminated. In the statement of activities, internal service fund
transactions have been included in the governmental activities. The following interfund activities have been
eliminated:
Due from and to other funds, which are short-term loans within the primary government
Transfers in and out, which are flows of assets between funds without the requirement for repayment
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
47
Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and
the modified accrual basis of accounting. Accordingly, only current assets, current liabilities, and deferred
inflows of resources are included on the balance sheet. The statement of revenues, expenditures and changes in
fund balances presents increases (revenue and other financing sources) and decreases (expenditures and other
financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the
accounting period in which they become both measurable and available to finance expenditures of the current
period.
Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after
year-end) which are recognized when due. The primary revenue sources that have been treated as susceptible to
accrual by the City are property taxes, intergovernmental revenues and other taxes. Business license fees are
recorded as received, except at year-end when they are accrued pursuant to the modified accrual basis of
accounting. The City recognizes business license revenue collected within 60 days as revenue at June 30.
Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Reconciliations of the fund financial statements to the government-wide financial statements are provided to
explain the differences.
The City reports the following major Governmental Fund:
General Fund – The General Fund is the City’s principal operating fund. It accounts for all revenues and
expenditures used to finance the traditional services associated with a municipal government except those
required to be accounted for in another fund.
Capital Projects and Equipment Capital Projects Fund – To account for major capital projects with various
revenues sources but excludes the Water and Sewer Capital Fund. These sources get transferred into the
Capital Improvement Project Fund.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses
and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all assets, deferred outflows of resources, liabilities (whether current or noncurrent), and
deferred inflows of resources are included on the Statement of Net Position. The Statement of Revenues,
Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net
Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned
while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have
been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of
the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that
are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
48
Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
The City reports the following major Proprietary Funds:
Water Utility Enterprise Fund – This fund accounts for the operation and maintenance of the City’s water
distribution system.
Sewer Utility Enterprise Fund – This fund accounts for the financial transactions of the City’s waste water
collection system.
A separate column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the Government-Wide
Financial Statements. The City has Vehicle Replacement Internal Service Fund that provides services directly to
other City funds.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary
Net Position. The City’s fiduciary funds represent agency funds and private purpose trust funds. Both agency
funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.
The City reports the following fiduciary funds:
Agency Funds – These funds account for resources held by the City in a trustee capacity as an agent for
individuals, private organizations, other governments, and/or other funds. Agency Funds are custodial in
nature (assets equal liabilities) and do not involve measurement of results of operations.
Private-purpose Trust Fund – This fund accounts for the assets and liabilities of the former redevelopment
agency and its allocated revenue to pay estimated installment payments of enforceable obligations until
obligations of the former redevelopment agency are paid in full and assets have been liquidated.
C. Cash and Investments
The City’s cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term
investments with original maturity of three months or less from the date of acquisition. All cash and investments
of proprietary funds are held in the City’s investment pool. These cash pools have the general characteristics of a
demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash
equivalents for statement of cash flows purposes.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
49
Note 1 – Summary of Significant Accounting Policies (Continued)
D. Fair Value Measurement
Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based
upon the level of judgment associated with the inputs used to measure their fair value.
The three levels of the fair value measurement hierarchy are described below:
Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the
measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or
liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would
use in pricing the assets or liabilities at the measurement date.
E. Property Taxes Receivable
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become
available. Available means due, or past due and receivable within the current period and collected within the
current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay
liabilities in the current period.
Under California law, property taxes are assessed and collected by the counties at up to 1% of assessed value,
plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities
based on complex formulas.
The property tax calendar is as follows:
Lien Date: January 1
Levy Date: July 1
Due Date: First Installment - November 1
Second Installment - February 1
Delinquent Date: First Installment - December 11
Second Installment - April 11
F. Prepaid Items
Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year
ended using purchase method.
G. Interfund Transactions
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans).
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
50
Note 1 – Summary of Significant Accounting Policies (Continued)
H. Capital Assets
In the government-wide financial statements, capital assets, which include land, buildings, improvements,
equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are recorded at
historical cost or estimated historical if purchased or constructed. Donated capital assets are valued at the
estimated acquisition value on the date donated. City policy has set the capitalization threshold for reporting
capital assets with an initial, individual cost of more than $5,000 and an estimated useful life of one year or more.
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include
street network, street appurtenances, and storm drains.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred
during the construction phase of capital assets of business-type activities is included as part of the capitalized
value of the assets constructed. The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized.
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method.
The lives used for depreciation purposes are as follows:
Assets Years
Building and Improvements 20-99
Machinery and Equipment 5-50
Vehicles 4-10
Infrastructure 20-60
I. Unearned and Unavailable Revenue
In the government-wide and fund financial statements, unearned revenue is reported for transactions for which
revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide
financial statements are cell phone site license lease payments received in advance, prepaid charges for services,
facility rentals paid in advance, and quarterly encroachment fees, and advance registration for recreation classes.
In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet
met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports
unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not
available.
J. Compensated Absences Payable
City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on
their length of employment. It is the policy of the City to pay all accumulated vacation pay and all or a portion of
sick pay when an employee retires or terminates. The long-term amount is included as a liability in the
governmental activities of the government-wide financial statements. A liability for these amounts is reported in
governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
All of the liability for compensated absences applicable to proprietary funds is reported in those funds.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
51
Note 1 – Summary of Significant Accounting Policies (Continued)
K. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability
claims (including property damage claims) and workers’ compensation claims. The estimated liability for
workers’ compensation claims and general liability claims includes “incurred but not reported” (“IBNR”) claims.
There is no fixed payment schedule to pay these liabilities.
L. Pensions
For purposes of measuring the aggregate net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the plans and
additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are
reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized
when due and payable in accordance with benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date June 30, 2017
Measurement Date June 30, 2018
Measurement Period July 1, 2017 to June 30, 2018
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension
expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain
or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to
pensions and are to be recognized in future pension expense. The amortization period differs depending on the source
of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All
other amounts are amortized straight-line over the average expected remaining service lives of all members that are
provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
M. Other Postemployment Benefits
For purposes of measuring the net other postemployment benefits (“OPEB)” liability, deferred outflows of resources
and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of
the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as
they are reported by the plans. For this purpose, benefit payments are recognized when due and payable in accordance
with benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date June 30, 2017
Measurement Date June 30, 2018
Measurement Period July 1, 2017 to June 30, 2018
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense
systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss
occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB
and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain
or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other
amounts are amortized straight-line over the average expected remaining service lives of all members that are provided
with benefits (active, inactive, and retired) as of the beginning of the measurement period.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
52
Note 1 – Summary of Significant Accounting Policies (Continued)
N. Deferred Outflows/Inflows of Resources
The Statement of Net Position reports separate sections for deferred outflows of resources, and deferred inflows
of resources, when applicable.
Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to
future periods and that, therefore, will not be recognized as an expense until that time.
Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to
future periods and that, therefore, are not recognized as revenue until that time.
O. Long-Term Liabilities
In the government-wide financial statements, long-term debt and other long-term liabilities are reported as
liabilities in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life
of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium
or discount.
P. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified
as follows:
Net Investment in Capital Assets – This component of net position consists of capital assets, net of
accumulated depreciation, capital related debt and deferred charges, and retention payable.
Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred
inflows of resources related to those assets.
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources,
liabilities, and deferred inflows of resources that are not included in the determination of net investment in
capital assets or the restricted component of net position.
Q. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable – Nonspendable fund balances include amounts that cannot be spent because they are not in a
spendable form, such as unrestricted loans receivable or prepaid items, or because resources legally or
contractually must remain intact.
Restricted – Restricted fund balances are the portion of fund balance that have externally enforceable
limitations on their usage through legislation or limitations imposed by creditors, grantor, laws and
regulations of other governments or enabling legislation.
Committed – Committed fund balances are self-imposed limitations by the highest level of decision-making
authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a
resolution is required to commit resources or to rescind the commitment.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
53
Note 1 – Summary of Significant Accounting Policies (Continued)
Q. Fund Balances (Continued)
Assigned – Assigned fund balances are limitations imposed by management based on the intended use of the
funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited
the use of the funds. Assignment of resources can be done by the highest level of decision making or by a
committee or official designated for that purpose. The City Council has authorized the Finance Director for
that purpose.
Unassigned – Unassigned fund balances represent the residual net resources in excess of the other
classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In
other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.
However, in governmental funds other than general fund, if expenditures incurred for specific purposes
exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report
a negative unassigned fund balance in that fund.
R. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements
When expenses are incurred for purposes for which both restricted and unrestricted components of net position
are available, the City’s practice is to apply the restricted component of net position first, then use the unrestricted
component of net position as needed.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are
available, the City’s practice is to apply restricted fund balances first, then use unrestricted fund balances as
needed.
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses
the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund
balance:
Committed
Assigned
Unassigned
S. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make
estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could
differ from those estimates.
T. Tax Abatement
Tax abatement is a reduction in tax revenues that results from an agreement between one or more governments
and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are
otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been
entered into that contributes to economic development or otherwise benefits the governments or the citizens of
those governments. City policy has set the threshold for disclosing tax abatement agreements greater than
$50,000.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
54
Note 2 – Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all
funds.
The City had the following cash and investments at June 30, 2019:
Government-Wide Statement of
Statement of Fiduciary
Net Position Net Position Total
Cash and investments 43,540,643$ 1,227,532$ 44,768,175$
Restricted cash and investment
with fiscal agent 684,955 1,665,916 2,350,871
Total cash and investments 44,225,598$ 2,893,448$ 47,119,046$
The City’s cash and investments at June 30, 2019 in more detail:
Cash and Investments:
Petty cash 8,850$
Demand deposits 1,062,297
Restricted cash 30,501
Investments 46,017,398
Total cash investments 47,119,046$
A. Demand Deposits
The carrying amounts of the City’s demand deposits were $1,062,297 at June 30, 2019. Bank balances at that
date were $1,062,294, the total amount of which was insured or collateralized with accounts held by the pledging
financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s
cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall
have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus,
collateral for cash deposits is considered to be held in the City’s name.
The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also
allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of
the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully
insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not
waived the collateralization requirements.
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the City's investment policy and the
California Government Code. The table also identifies certain provisions of the California Government Code (or
the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of
credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the
provisions of debt agreements of the City, rather than the general provisions of the California Government Code
or the City's investment policy.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
55
Note 2 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy (Continued)
Maximum Maximum
Authorized Investment Type Maturity Portfolio*One Issuer*
U.S. Treasury securities 5 years 100%None
U.S. agency and U.S. government sponsored
enterprise securities 5 years 20%None
Obligation of the State of California
or any local agency 5 years 100%None
Registered treasury notes or bonds of any
of the 49 states in addition to California 5 years 100%None
Bankers' acceptance 180 days 40%5%
Commercial paper 270 days 25%10%
Nonnegotiable certificate of deposit 5 years 100%None
Negotiable certificate of deposit 5 years 30%None
Medium term notes 5 years 30%10%
Money market mutual funds 89 days 15%None
Local Agency Investment Fund (LAIF)None 100%50 Million/account
*The table is based on state law requirements or investment policy requirements, whichever is more restrictive.
C. Investments Authorized by Debt Agreements
Maximum Maximum
Maximum Percentage of Investment in
Authorized Investment Type Maturity Portfolio*One Issuer*
U.S. treasury securities None None None
U.S. agency and U.S. government sponsored
enterprise securities None None None
Bankers' acceptance 180 days None 30%
Commercial paper 270 days None None
Money market mutual funds 89 days None None
Investment contracts 30 years None None
Local Agency Investment Fund (LAIF)None None None
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than
the general provisions of the California Government Code or the City's investment policy. The table on the
following page identifies the investment types that are authorized for investments held by bond trustee. The table
also identifies certain provisions of these debt agreements that address interest rate risk, and concentration of
credit risk.
D. Fair Value Measurement
At June 30, 2019, investments are reported at fair value. The following table presents the fair value measurement
of investments on a recurring basis and the levels within the fair value hierarchy in which the fair value
measurements fall at June 30, 2019:
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
56
Note 2 – Cash and Investments (Continued)
D. Fair Value Measurement (Continued)
Quoted Prices Significant
in Active Other
Markets for Observable
Identical Assets Inputs
Investment Type Value (Level 1) (Level 2) Uncategorized
Investments:
US Treasury bonds/notes 13,653,691$ 13,653,691$ -$ -$
US government sponsored enterprise
securities 4,834,732 - 4,834,732 -
Corporate note 5,424,074 - 5,424,074 -
Negotiable certificates of deposit 3,606,725 - 3,606,725 -
LAIF 16,177,805 - - 16,177,805
Investments with Fiscal Agent:
Money Market Mutual Funds 2,320,371 - - 2,320,371
Total investments 46,017,398$ 13,653,691$ 13,865,531$ 18,498,176$
Fair Value Measurement
Investments in municipal bonds/notes, U.S. government sponsored enterprise securities, and corporate note are
valued based on institutional bond quotes. Investments in negotiable certificates of deposits are valued based on
certificate of deposits pricing.
E. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment is, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities
so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide
the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's
investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the
following table that shows the distribution of the City's investments by maturity:
Investment Type Amount Less than 1 1 to 2 2 to 3 3 to 4 4 to 5
Investments:
US Treasury bonds/notes 13,653,691$ -$ 1,341,608$ 6,155,652$ 3,238,410$ 2,918,021$
US government sponsored
enterprise securities 4,834,732 - 268,091 2,415,846 776,546 1,374,249
Corporate note 5,424,074 916,972 1,864,829 1,482,159 781,372 378,742
Negotiable certificates of deposit 3,606,725 1,346,220 2,260,505 - - -
LAIF 16,177,805 16,177,805 - - - -
Investments with Fiscal Agent:
Money Market Mutual Funds 2,320,371 2,320,371 - - - -
Total investments 46,017,398$ 20,761,368$ 5,735,033$ 10,053,657$ 4,796,328$ 4,671,012$
Investment Maturities (in Years)
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
57
Note 2 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California Government
Code or the City's investment policy, or debt agreements, and the actual rating as of fiscal year end for each
investment type.
Minimum
Legal
Investment Type Rating Total AAA AA- to AA+ A- to A+ BBB Unrated
Investments:
US Treasury bonds/notes N/R 13,653,691$ 13,653,691$ -$ -$ -$ -$
US government sponsored
enterprise securities A 4,834,732 - 4,834,732 - - -
Corporate note A 5,424,074 - 1,024,528 3,897,907 501,639 -
Negotiable certificates of deposit N/R 3,606,725 - 997,781 2,608,944 - -
LAIF N/A 16,177,805 - - - - 16,177,805
Investments with Fiscal Agent:
Money Market Mutual Funds N/R 2,320,371 2,320,371 - - - -
Total investments 46,017,398$ 15,974,062$ 6,857,041$ 6,506,851$ 501,639$ 16,177,805$
N/R - Not Required by the City's investment policy
N/A - Not applicable
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. The City’s investment in Fannie Mae Agency Note in
amount of $3,332,809 represented 7.2% of total City investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure
of the counterparty (e.g., broker dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California Government Code
and the City's investment policy do not contain legal or policy requirements that would limit the exposure to
custodial credit risk for deposits or investments, other than the following provision for deposits: The California
Government Code requires that a financial institution secure deposits made by state or local government units by
pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so
waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at
least 110% of the total amount deposited by the public agencies. California law also allows financial institutions
to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits. At June 30, 2019, the City deposits (bank balances were insured by the Federal Depository Insurance
Corporation up to $250,000 and the remaining balances were collateralized under California law.
For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms
of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting
government.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
58
Note 2 – Cash and Investments (Continued)
F. Investment in Local Agency Investment Fund (“LAIF”)
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the
oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2019 included
a portion of the pool funds invested in Structured Notes and Asset-Backed Securities, which included the
following:
Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon
rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded
forwards or options.
Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share
of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages
(for example, collateralized mortgage obligations), or credit card receivables.
As of June 30, 2019, the City had $16,177,805 invested in LAIF, which had invested 1.77% of the pool
investment funds in Structured Notes, Medium-term Asset-Backed Securities, and Short-term Asset Backed
Commercial Paper.
Note 3 – Interfund Transactions
A. Due From/To Other Funds
At June 30, 2019, the City had the following due from/to other funds:
Due To Other Funds
Nonmajor Governmental Funds
Due From Other Funds
General Fund
168,244$
The above amounts resulted from deficit in the pooled cash account. Short-term loans were made to the
Community Development Block Grant Special Revenue Fund and Police Grant Special Revenue Fund to address
these deficits.
B. Transfers
During the year ended June 30, 2019, the City had the following transfers:
Capital Projects
and Equipment Nonmajor
General Capital Projects Governmental
Transfers out Fund Fund Funds Total
General Fund 28,000$ 6,005,407$ 1,764,193$ 7,797,600$
Nonmajor Governmental Funds
Funds 103,100 762,487 270 865,857
Water Utility 324,500 - - 324,500
Sewer Utility 54,000 - - 54,000
Internal Service Funds - 340,025 - 340,025
Total 509,600$ 7,107,919$ 1,764,463$ 9,381,982$
Transfers in
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
59
Note 3 – Interfund Transactions (Continued)
B. Transfers (Continued)
In general, transfers are used to 1) use unrestricted revenues collected in one fund to finance various programs
accounted for in other funds in accordance with budgetary authorizations, and 2) to transfer to the General Fund
to fund administration services.
Transfers totaling $509,600 from Water Utility, Sewer Utility, and Nonmajor Governmental Funds, were made to
the General Fund to provide funding for certain administrative costs.
General Fund transferred $1,764,193 to Nonmajor Governmental Funds (City Debt Service Debt Service Fund)
to pay for debt service obligations.
General Fund, Internal Service Fund, and Nonmajor Governmental Funds transferred $7,107,919 to the Capital
Projects and Equipment Capital Projects Fund to provide funding for capital projects and equipment purchases.
Note 4 – Advance to Successor Agency
In 2012, the Sewer Fund advanced $1,200,000 to the former redevelopment agency, but was subsequently denied by
the Department of Finance (DOF). The City appealed the DOF decision and, in 2014, this advance was approved.
Interest on the advance is consistent with the Local Agency Investment Fund (“LAIF”) interest rate at the time the
Oversight Board made the finding that the advance was for legitimate redevelopment purposes, which was at
0.00367%. The outstanding principal balance of the advance at June 30, 2019 was $231,429 and the accrued interest
was in the amount of $1,737.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
60
Note 5 – Capital Assets
The summary of changes in governmental activities capital assets for the year ended June 30, 2019 is as follows:
Balance Reclassifications Balance
July 1, 2018 Additions Deletions and Transfers June 30, 2019
Capital assets not being depreciated:
Land 10,519,847$ 9,800,000$ -$ -$ 20,319,847$
Intangible asset-land easement 900,000 - - - 900,000
Construction in progress 4,065,480 6,910,401 (101,979) (2,893,686) 7,980,216
Total capital assets not being depreciated 15,485,327 16,710,401 (101,979) (2,893,686) 29,200,063
Capital assets being depreciated:
Buildings and improvements 15,893,450 - - 762,568 16,656,018
Machinery and equipment 2,110,966 - 1,667,576 3,778,542
Vehicles 3,108,057 584,802 (72,579) - 3,620,280
Infrastructure 82,797,513 - - 899,130 83,696,643
Total capital assets being depreciated 103,909,986 584,802 (72,579) 3,329,274 107,751,483
Less accumulated depreciation for:
Buildings and improvements (6,125,531) (394,908) - (324,263) (6,844,702)
Machinery and equipment (1,912,277) (42,322) (64,784) (2,019,383)
Vehicles (1,348,233) (376,162) 64,715 - (1,659,680)
Infrastructure (34,299,338) (2,253,222) - - (36,552,560)
Total accumulated depreciation (43,685,379) (3,066,614) 64,715 (389,047) (47,076,325)
Total capital assets being depreciated, net 60,224,607 (2,481,812) (7,864) 2,940,227 60,675,158
Total governmental activities 75,709,934$ 14,228,589$ (109,843)$ 46,541$ 89,875,221$
During the year ended June 30, 2019, the capital assets of the Successor Agency were transferred to the governmental
activities. Depreciation expense was charged to functions/programs of governmental activities for the year ended
June 30, 2019 as follows:
General government 272,689$
Public safety 238,069
Community development 2,266,414
Public works 20,484
Internal service funds 268,958
Total depreciation expense 3,066,614$
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
61
Note 5 – Capital Assets (Continued)
The summary of changes in business-type activities capital assets for the year ended June 30, 2019 is as follows:
Balance Balance
July 1, 2018 Additions Deletions Reclassifications June 30, 2019
Capital assets not being depreciated:
Construction in progress-water 1,095,639$ 1,749,164$ -$ (894,928)$ 1,949,875$
Construction in progress-sewer 307,136 777,893 (196,349) - 888,680
Total capital assets not being depreciated 1,402,775 2,527,057 (196,349) (894,928) 2,838,555
Capital assets being depreciated:
Buildings and improvements - water 73,284 - - - 73,284
Machinery and equipment - water 587,115 - - - 587,115
Machinery and equipment - sewer 785,802 - - - 785,802
Vehicles - water 273,061 - - - 273,061
Vehicles - sewer 403,127 207,102 - - 610,229
Infrastructure - water 32,150,174 - - 894,928 33,045,102
Infrastructure - sewer 38,407,844 - - 38,407,844
Total capital assets being depreciated 72,680,407 207,102 - 894,928 73,782,437
Less accumulated depreciation for:
Buildings and improvements - water (73,284) - - - (73,284)
Machinery and equipment - water (513,117) (12,410) - - (525,527)
Machinery and equipment - sewer (251,012) (14,928) - - (265,940)
Vehicles - water (161,108) (21,223) - - (182,331)
Vehicles - sewer (225,786) (43,668) - - (269,454)
Infrastructure - water (17,569,367) (504,722) - - (18,074,089)
Infrastructure - sewer (17,148,723) (1,013,323) - - (18,162,046)
Total accumulated depreciation (35,942,397) (1,610,274) - - (37,552,671)
Total capital assets being depreciated, net 36,738,010 (1,403,172) - 894,928 36,229,766
Total business-type activities 38,140,785$ 1,123,885$ (196,349)$ -$ 39,068,321$
Depreciation expense was charged to functions/programs of business-type activities for the year ended June 30, 2019
as follows:
Water Utility 538,355$
Sewer Utility 1,071,919
Total depreciation expense 1,610,274$
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
62
Note 5 – Capital Assets (Continued)
The summary of changes in fiduciary activities capital assets for the year ended June 30, 2019 is as follows:
Balance Balance
July 1, 2018 Additions Transfers June 30, 2019
Capital assets being depreciated:
Buildings and improvements 370,804$ -$ (370,804)$ -$
Machinery and equipment 64,784 - (64,784) -
Total capital assets being depreciated 435,588 - (435,588) -
Less accumulated depreciation for:
Buildings and improvements (320,683) (3,580) 324,263 -
Machinery and equipment (64,784) - 64,784 -
Total accumulated depreciation (385,467) (3,580) 389,047 -
Total capital assets being depreciated, net 50,121$ (3,580)$ (46,541)$ -$
Note 6 – Long-Term Liabilities
A. Governmental Activities
Summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2019 is as
follows:
Balance Balance Due within Due in more
July 1, 2018 Additions Deletions June 30, 2019 One Year than One Year
2008 Taxable Pension Obligation
Bonds, Series A-2 1,263,000$ -$ (1,263,000)$ -$ -$ -$
2009 Lease Revenue Bonds 2,415,000 - (420,000) 1,995,000 420,000 1,575,000
Municipal Finance Corporation 603,308 - (71,905) 531,403 74,370 457,033
Claims payable 387,471 92,274 (56,398) 423,347 105,837 317,510
Compensated absences 1,132,259 826,285 (670,118) 1,288,426 345,676 942,750
Total 5,801,038$ 918,559$ (2,481,421)$ 4,238,176$ 945,883$ 3,292,293$
Classification
The General Fund has been used to liquidate the majority of the liability for compensated absences, other post-
employment benefits liabilities and net pension liabilities in the current and prior years.
2008 Taxable Pension Obligation Bonds
On June 1, 2008, the City issued Taxable Pension Obligation Bonds for the purpose of refunding the City’s
obligations to the California Public Employees’ Retirement System for pension benefits accruing for its members
in the amounts of $2,170,000 and $8,775,000 for Series 2008A-1 and 2008A-2, respectively. Interest rate on the
bonds varies from 4.9% to 5.66%. Payments have been presented as expenditures in the fund financial statements
and as prepaid assets in the government-wide financial statements. The balance in the Series 2008A-1 was paid
off during the year ended June 30, 2016. The balance in the 2008A-2 bonds was paid off during the year ended
June 30, 2019.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
63
Note 6 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2009 Series Lease Revenue Bonds
On January 14, 2009, the City issued 2009 Series Lease Revenue Bonds for the purpose of financing the
construction of a new fire station in the City in the amount of $6,300,000 Interest rate on the bonds is 3.71%. The
total balance of the 2009 Series Lease Revenue bonds at June 30, 2019 was $1,995,000.
The annual debt service requirements are as follows:
Year ending
June 30, Principal Interest Total
2020 420,000$ 68,171$ 488,171$
2021 420,000 52,589 472,589
2022 420,000 37,007 457,007
2023 420,000 21,425 441,425
2024 315,000 5,844 320,844
Total 1,995,000$ 185,036$ 2,180,036$
Municipal Finance Corporation Loan
On May 8, 2014, the City entered into a Lease with Option to Purchase agreement with Municipal Finance
Corporation relating to a capital project to be performed by Climatec LLC in the amount of $1,546,931. Interest
rate on the loan is 3.40%. The balance of the Municipal Finance Corporation Loan at June 30, 2019 was
$531,403.
The annual debt service requirements are as follows:
Year ending
June 30, Principal Interest Total
2020 74,370$ 17,441$ 91,810$
2021 76,920 14,891 91,811
2022 79,558 12,253 91,811
2023 82,286 9,525 91,811
2024 85,107 6,704 91,811
2025-2026 133,162 4,553 137,715
Total 531,403$ 65,367$ 596,769$
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
64
Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities
Summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2019 is as
follows:
Balance Balance Due within Due in more
July 1, 2018 Additions Deletions June 30, 2019 One Year than One Year
2011 Sewer Revenue Refunding Bonds 2,270,000$ -$ (160,000)$ 2,110,000$ 170,000$ 1,940,000$
Sewer Capital Improvement Project #1 1,971,206 - (118,528) 1,852,678 121,610 1,731,068
Sewer Capital Improvement Project #2 1,382,484 - (70,778) 1,311,706 72,618 1,239,088
West Orange County Water Board Loan 872,555 - (89,491) 783,064 89,493 693,571
Compensated absences 131,917 173,833 (167,257) 138,493 53,137 85,356
Total 6,628,162$ 173,833$ (606,054)$ 6,195,941$ 506,858$ 5,689,083$
Classification
The Water Utility Fund and Sewer Utility Fund have been used to liquidate the liability for compensated
absences and net pension liabilities.
2011 Sewer System Revenue Refunding Bonds
On March 2, 2011, the City issued 2011 Sewer System Revenue Refunding Bonds in the amount of $3,310,000 to
pay off the 2000 Sewer System Certificates of Participation. The 2000 Sewer System Certificates of Participation
were issued to provide for improvements to the City’s sewer system.
Interest rate on the 2011 Sewer System Revenue Refunding Bonds is 4.8%, and the balance of the 2011 Sewer
System Revenue Refunding Bonds at June 30, 2019 was $2,110,000.
The annual debt service requirements are as follows:
Year ending
June 30, Principal Interest Total
2020 170,000$ 99,240$ 269,240$
2021 175,000 91,080 266,080
2022 185,000 82,560 267,560
2023 195,000 73,560 268,560
2024 205,000 64,080 269,080
2025-2029 1,180,000 161,280 1,341,280
Total 2,110,000$ 571,800$ 2,681,800$
Sewer Capital Improvement Project Loan #1
On April 6, 2011, the City entered into an agreement with the Clean Water State Revolving Fund Control Board
for construction of the Sewer Capital Improvement project. The City may borrow up to $2,644,356 or the eligible
costs of the project, whichever is less. At June 30, 2019, the City had drawn down the entire loan fund. The loan
has an interest rate of 2.6% with maturities through 2031. The outstanding balance at June 30, 2019 was
$1,852,678.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
65
Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Sewer Capital Improvement Project Loan #1 (Continued)
The annual debt service requirements are as follows:
Year ending
June 30, Principal Interest Total
2020 121,610$ 48,170$ 169,780$
2021 124,772 45,008 169,780
2022 128,017 41,764 169,781
2023 131,345 38,435 169,780
2024 134,760 35,020 169,780
2025-2029 728,214 120,687 848,901
2030-2032 483,960 25,381 509,341
Total 1,852,678$ 354,465$ 2,207,143$
Sewer Capital Improvement Project Loan #2
On April 6, 2011, the City entered into an agreement with the Clean Water State Revolving Fund Control Board
for construction of the Sewer Capital Improvement project. The City may borrow up to $2,125,112 or the eligible
costs of the project, whichever is less. At June 30, 2019, the State Water Resources Control Board had disbursed
$1,652,742. The loan has an interest rate of 2.6% with maturities through 2031. The outstanding balance at
June 30, 2019 was $1,311,706.
The annual debt service requirements are as follows:
Year ending
June 30, Principal Interest Total
2020 72,618$ 34,104$ 106,722$
2021 74,506 32,216 106,722
2022 76,444 30,279 106,723
2023 78,431 28,292 106,723
2024 80,470 26,252 106,722
2025-2029 434,845 98,769 533,614
2030-2034 494,392 39,222 533,614
Total 1,311,706$ 289,134$ 1,600,840$
West Orange County Water Board Loan
On December 11, 2017, the City entered into financial participation agreement with the West Orange County
Water Board (the “WOCWB”) for relocation of the City’s allocated 14.3% ownership in the waterline. The
City’s portion of project costs was in the amount of $894,928. The repayments are due quarterly on the first of
the month commencing June 1, 2018. The interest rate ranges from 1.414% to 5.314% with maturity date on
March 1, 2028. The outstanding balance at June 30, 2019 was $783,064.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
66
Note 6 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
West Orange County Water Board Loan (Continued)
The annual debt service requirements are as follows:
Year ending
June 30, Principal Interest Total
2020 89,493 15,484 104,977$
2021 89,493 16,234 105,727
2022 89,493 16,311 105,804
2023 89,493 15,673 105,166
2024 89,493 14,357 103,850
2025-2028 335,599 29,407 365,006
Total 783,064$ 107,466$ 890,530$
C. Fiduciary Activities
Balance Balance Due within Due in more
July 1, 2018 Additions Deletions June 30, 2019 One Year than One Year
2000 Tax Allocation Bonds Series A 1,865,000$ -$ (575,000)$ 1,290,000$ 605,000$ 685,000$
2000 Tax Allocation Bonds Series B 60,000 - (60,000) - - -
Advance from Sewer Fund (Note 4)474,078 - (240,912) 233,166 233,166 -
Total 3,239,110$ -$ (875,912)$ 1,523,166$ 838,166$ 685,000$
Classification
2000 Tax Allocation Refunding Bonds
On December 20, 2000, the Agency issued 2000 Tax Allocation Refunding Bonds, Series A and B for the
Riverfront Redevelopment Project in the amounts of $8,520,000 and $685,000, respectively. Interest rate on the
bonds varies from 4% to 5.375%. The Agency used the proceeds of Series A Bonds to finance the refunding and
defeasance of $1,380,000 of 1986 Tax Allocation Bonds and $3,715,000 of 1991 Tax Allocation Bonds. Series B
Bonds were used to pay bond issuance costs and finance certain redevelopment activities of the Agency. The
Series A Bonds are payable exclusively from Tax Revenues and certain funds and accounts held under the
indenture. Series B Bonds are to be paid exclusively from Surplus Tax Revenues and certain funds and accounts
held under the indenture. The balance in the Series A bonds outstanding at June 30, 2019 was $1,290,000. The
Series B bonds were paid off during the year ended June 30, 2019. This liability was transferred to the Successor
Agency upon dissolution of the redevelopment agency.
The annual debt service requirements are as follows:
Year ending
June 30, Principal Interest
2020 605,000$ 53,078$
2021 160,000 32,519
2022 165,000 23,784
2023 175,000 14,647
2024 185,000 4,972
Total 1,290,000$ 129,000$
Series A
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
67
Note 7 – Non-City Obligations
A. Heron Pointe Community Facilities District No. 2002-01
The Heron Pointe Community Facilities District No. 2002-01 was formed to finance public facilities
improvements within Heron Pointe. The debt service payments on the bonds will be included on property tax bills
within community facilities district and will be collected by the City and then forwarded to the paying agent. A
Reserve Fund was established in which the City may make withdrawals enough to cover any delinquent payments
on the reassessments. The City has no liability for the bonds beyond the amount held in the Reserve Fund. The
bonds are not secured by the general taxing power of the City, county, state, or any political subdivision of the
state nor have the City, county, state, or any political subdivision thereof pledged its full faith and credit for the
repayment thereof. Since the City has no liability for these bonds, the reserve fund and debt service monies are
stored in the Agency Fund and the debt is not included in the financial statements. The outstanding balance at
June 30, 2019, was $3,095,000.
B. Pacific Gateway Business Center Community Facilities District No 2005-01
The Pacific Gateway Business Center Community Facilities District No. 2005-01 was formed to finance public
facilities within the Pacific Gateway. The debt service payments on the bonds will be included on property tax
bills within the community facilities district and will be collected by the City and then forwarded to the paying
agent. A Reserve Fund was established in which the City may make withdrawals enough to cover any delinquent
payments on the reassessments. The City has no liability for the bonds beyond the amount held in the Reserve
Fund. The bonds are not secured by the general taxing power of the City, county, state, or any political
subdivision of the state nor have the City, county, state, or any political subdivision thereof pledged its full faith
and credit for the repayment thereof. Since the City has no liability for these bonds, the reserve fund and debt
service monies are stored in the Agency Fund and the debt is not included in the financial statements. The
outstanding balance at June 30, 2019, was $7,820,000.
Note 8 – Risk Management and Self Insurance Program
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City is a member of the California Joint Powers Insurance Authority (the “Authority”). The Authority is
composed of 116 California public entities and is organized under a joint powers agreement pursuant to
California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs
for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group
purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its
members in 1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine-member Executive Committee.
B. Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is
then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward
are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance
programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims
history, relative to other members of the risk-sharing pool.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
68
Note 8 – Risk Management and Self Insurance Program (Continued)
B. Self-Insurance Programs of the Authority (Continued)
Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member
is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member,
which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first
layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the
pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from
$30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within
the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost
allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.
Subsidence losses have a sub-limit of $40 million per occurrence. The coverage structure includes retained risk
that is pooled among members, reinsurance, and excess insurance. More detailed information about the various
layers of coverage is available on the following website: https://cjpia.org/protection/coverage-programs.
Primary Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The
payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the weight applied to losses
within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is
evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses
includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the
pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
For 2018-19 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits
under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2
million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s
Liability losses from $5 million to $10 million are pooled among members.
C. Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the Authority.
The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the
City. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has an aggregate limit
of $50 million for the 3-year period from July 1, 2017 through July 1, 2020. Each member of the Authority has a
$10 million sub-limit during the 3-year policy term.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
69
Note 8 – Risk Management and Self Insurance Program (Continued)
C. Purchased Insurance (Continued)
Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is
underwritten by several insurance companies. City of Seal Beach property is currently insured according to a
schedule of covered property submitted by the City of Seal Beach to the Authority. City of Seal Beach property
currently has all-risk property insurance protection in the amount of $49,844,836. There is a $10,000 deductible
per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance
The City of purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is
part of the property protection insurance program of the Authority. The City’s property currently has earthquake
protection in the amount of $49,719,970. There is a deductible of 5% per unit of value with a minimum
deductible of $100,000.
Crime Insurance
The City purchases crime insurance coverage in the amount of $3,000,000 with a $2,500 deductible. The fidelity
coverage is provided through the Authority.
D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or
judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or
insured liability coverage in 2018-19.
E. Claims Activity
Claims expenses and liabilities are reported when it is probable that a loss has occurred and the amount of that
loss can be reasonably estimated. There were workers’ compensation claims that remained outstanding for
claims occurred prior to joining the Authority. At June 30, 2019, the amount of these liabilities was $423,347
and was the City’s best estimate based on available information.
A summary of the changes in claims liabilities for the past three fiscal years is as follows:
Current Year
Claims and
Balance Changes in Claim Balance
Workers' Compensation Beginning of Year Estimates Payments End of Year
2016-2017 377,898$ 152,708$ (103,011)$ 427,595$
2017-2018 427,595 - (40,124) 387,471
2017-2018 387,471 92,274 (56,398) 423,347
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
70
Note 9 – Defined Benefit Pension Plans
The following is a summary of net pension liabilities and related deferred outflows and inflows of resources as of
June 30, 2019 and pension expenses for the year then ended June 30, 2019:
Governmental Business-type
Activities Activities Total
Deferred outflows of resources:
Pension contribution made after measurement date:
Miscellaneous 785,382$ 290,829$ 1,076,211$
Safety 2,509,250 - 2,509,250
Changes of assumptions:
Miscellaneous 765,063 283,256 1,048,319
Safety 2,076,131 - 2,076,131
Difference between expected and actual experience:
Miscellaneous 225,010 83,307 308,317
Safety 523,563 - 523,563
Difference in projected and actual earnings on
pension investments:
Miscellaneous 43,949 16,271 60,220
Safety 165,604 - 165,604
Adjustment due to differences in proportions:
Miscellaneous 114,466 42,380 156,846
Safety 315,481 - 315,481
Total deferred outflows of resources 7,523,899$ 716,043$ 8,239,942$
Aggregate net pension liabilities:
Aggregate net pension liabilities
Miscellaneous 8,889,572$ 3,291,261$ 12,180,833$
Safety 24,459,736 - 24,459,736
Total net pension liabilities 33,349,308$ 3,291,261$ 36,640,569$
Deferred inflows of resources:
Difference between expected and actual experience:
Adjustment due to differences in proportions:
Difference between City's contributions and
proportionated share of contributions:
Miscellaneous 559,051$ 206,982$ 766,033$
Safety 664,384 - 664,384
Total deferred inflows of Resources 1,223,435$ 206,982$ 1,430,417$
Pension expenses:
Miscellaneous 916,416$ 174,441$ 1,090,857$
Safety 4,226,856 - 4,226,856
Total pension expense 5,143,272$ 174,441$ 5,317,713$
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
71
Note 9 – Defined Benefit Pension Plans (Continued)
General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multiple-
employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit provisions and all other
requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may
be obtained from https://www.calpers.ca.gov/page/forms-publications.
Employees Covered by Benefit Terms
At June 30, 2017, the following employees were covered by the benefit terms:
Miscellaneous Misc PEPRA Safety Safety Fire
Safety Police
PEPRA
Other Safety
PEPRA
Active employees 43 10 31 - 2 1
Transferred and terminated employees 39 4 6 - - -
Separated 26 3 5 1 - -
Retired Employees and Beneficiaries 148 - 94 40 - -
Total 256 17 136 41 2 1
Benefit Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan
members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement
upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible
for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a
monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final
compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.
Following are the benefit provisions for each plan:
Miscellaneous Rate
Plan*
PEPRA
Miscellaneous Rate
Plan Safety Rate Plan*
PEPRA Safety Rate
Plan
Hire date Prior to January 1,
2013
January 1, 2013 and
after
Prior to January 1,
2013
January 1, 2013 and
after
Benefit formula 2% @ 55 2% @ 62 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life monthly for life
Retirement age minimum 50 yrs minimum 52 yrs minimum 50 yrs minimum 50 yrs
Monthly benefits, as a % of eligible compensation 1.426% - 2.418%,
50 yrs - 63+ yrs,
respectively
1.000% - 2.500%,
52 yrs - 67+ yrs,
respectively
3.000%, 50+ yrs 2.000%-2.7000%,
50 yrs - 57+ yrs,
respectively
* Closed to new entrants
Cost-sharing Rate Plans
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
72
Note 9 – Defined Benefit Pension Plans (Continued)
General Information about the Pension Plan (Continued)
Benefit Provided (Continued)
Participants are eligible for non-industrial disability retirement if they become disabled and have at least 5 years of
credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a
monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are
not offered to miscellaneous employees.
An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The
employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is
eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death
benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where
interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each
completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's
salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding
death.
Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s),
or to the retiree's estate.
Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the
second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a
compound basis by 2 percent.
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on
the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’
annual actuarial valuation process. The Public agency cost-sharing plans covered by either the Safety risk pools, the
Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the
risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer
is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the measurement period ended June 30, 2018 (the measurement date), the contribution rates were as follows:
Miscellaneous Rate
Plan*
PEPRA
Miscellaneous Rate
Plan Safety Rate Plan*
PEPRA Safety Rate
Plan
Required employee contribution rates 7.000%6.500%9.000%12.250%
Required employer contribution rates 9.599%6.908%21.418%12.729%
* Closed to new entrants
Cost-sharing Rate Plans
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
73
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pension
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2017 valuation was rolled forward to determine June 30, 2018 total pension liability based on the
following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Varies by Entry Age and Service
Entry Age Normal
Contract COLA up to 2.0% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.50% thereafter
Derived using CalPERS’ Membership Data for all Funds.
1The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality
improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer
to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be
found on the CalPERS website.
Change of Assumption
In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study
and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the
funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and
the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term
and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by
calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash
flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set
equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The
expected real rates of return by asset class are as followed:
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
74
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pension (Continued)
Long-term Expected Rate of Return (Continued)
Current Target Real Return Real Return
Asset Class(1)Allocation Years 1-102 Years 11+3
Global Equity 50.0%4.80%5.98%
Fixed Income 28.0%1.00%2.62%
Inflation Assets 0.0%0.77%1.81%
Private Equity 8.0%6.30%7.23%
Real Estate 13.0%3.75%4.93%
Liquidity 1.0%0.00%-92.00%
100.0%
1 In the CalPERS's CAFR, Fixed Income is included in Blobal Debt Securities;
Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity
Securities and Blobal Debt Securities.
2 An expected inflation of 2.00% used for this period
3 An expected inflation of 2.92% used for this period.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current member
contribution rates and that contributions from employers will be made at statutorily required rates, actuarially
determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement
date, calculated using the discount rate of 7.15%, as well as what the City’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-
point higher (8.15%) than the current rate:
Discount Rate Current Discount Discount Rate
- 1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous 19,565,799$ 12,180,833$ 6,084,665$
Safety 37,133,430$ 24,459,736$ 14,075,913$
Plan's Net Pension Liability/(Asset)
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
75
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pension (Continued)
Pension Plan Fiduciary Net Position
Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial
report and can be obtained from CalPERS’ website under Forms and Publications.
Proportionate Share of Net Pension Liability and Pension Expense
The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the
measurement period:
Plan Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/17 (Valuation date) 49,390,227$ 37,096,486$ 12,293,741$
Balance at: 6/30/18 (Measurement date) 49,084,678 36,903,845 12,180,833
Net Changes during 2017-208 (305,549) (192,641) (112,908)
Safety
Balance at: 6/30/17 (Valuation date) 86,327,879$ 62,234,783$ 24,093,096$
Balance at: 6/30/18 (Measurement date) 87,728,966 63,269,230 24,459,736
Net Changes during 2017-2018 1,401,087 1,034,447 366,640
Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense
to the individual employers within the risk pool.
(1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first
calculated for the risk pool as a whole on the valuation date (June 30, 2017). The risk pool’s fiduciary net
position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability
(“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date
(June 30, 2018). Risk pool FNP at the measurement date is then subtracted from this number to compute the
NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference
thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2018
less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the
measurement period (2017-2018).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on
the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of the
market value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the
amounts in step (1), the risk pool’s total TPL and FNP, respectively.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
76
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued)
(5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the
TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2)
multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions
made by the employer on behalf of the plan during the measurement period.
(6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).
Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City’s
share of contributions during measurement period.
The City’s proportionate share of the net pension liability was as follows:
Miscellaneous Safety
June 30, 2017 0.12396% 0.24294%
June 30, 2018 0.12641% 0.25383%
Change - Increase (Decrease) 0.00245% 0.01089%
The amortization period differs depending on the source of the gain or loss. The difference between projected and
actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average
expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the
beginning of the measurement period.
The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by
the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the
2017-2018 measurement period is 3.8 years, which was obtained by dividing the total service years of 516,147 (the
sum of remaining service lifetimes of the active employees) by 135,474 (the total number of participants: active,
inactive, and retired).
At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred outflows Deferred inflows Deferred outflows Deferred inflows
of Resources of Resources of Resources of Resources
Pension contribution after measurement date 1,076,211$ -$ 2,509,250$ -$
Changes of assumptions 1,048,319 - 2,076,131 -
Difference between expected and actual experience 308,317 - 523,563 -
Difference between projected and actual earning on
pension plan investments 60,220 - 165,604 -
Adjustment due to differences in proportions 156,846 - 315,481 -
Difference between City contributions and
proportionate share of contributions - (766,033) - (664,384)
Total 2,649,913$ (766,033)$ 5,590,029$ (664,384)$
Miscellaneous Safety
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
77
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued)
Deferred outflows of resources related to pensions resulting from the City’s contributions made subsequent to the
measurement date will be recognized as a reduction of the collective net pension liability in the year ended
June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Measurement
Period
Ended June 30, Miscellaneous Safety
2019 894,499$ 2,024,396$
2020 450,315 1,177,648
2021 (427,585) (616,228)
2022 (109,560) (169,421)
2023 - -
Thereafter - -
807,669$ 2,416,395$
Deferred Outflows/
(Inflows) of Resources
Note 10 – Other Postemployment Benefits (“OPEB”) Plan
The following is a summary of net other postemployment benefits (“OPEB”) liabilities and related deferred outflows
and inflows of resources as of June 30, 2019 and pension expenses for the year then ended June 30, 2019:
Governmental Business-type
Activities Activities Total
Deferred outflows of resources:
OPEB contribution made after measurement date 699,903$ 147,130$ 847,033$
Aggregate Net OPEB liabilities 5,229,427$ 1,099,300$ 6,328,727$
Deferred inflows of Resources:
Difference in projected and actual earnings on
OPEB investments 376,964$ 79,242$ 456,206$
OPEB expenses 548,356$ 115,272$ 663,628$
General Information about the OPEB Plan
Plan Description
The City provides postretirement medical benefits to employees who retire directly from the City under CalPERS
under a single-employer defined benefit post-employment benefits plan. Eligible retirees can continue participation in
the City medical plans (“PEMHCA”). For miscellaneous retirees, the City contributes up to a capped dollar amount
which varies by bargaining unit, medical coverage, and years of service. For police safety retirees, the City
contribution rate varies by date of hire and date of retirement.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
78
Note 10 – Other Postemployment Benefits (“OPEB”) Plan (Continued)
General Information about the OPEB Plan (Continued)
Benefits Provided
Future Retirees are eligible for PEMCHA minimum medical benefits ($136 per month in 2019) if they retire at Age
50 and above. For legacy hires, reimbursements are generally subject to a maximum, which varies by bargaining
group and service years. Dependents are eligible to enroll subject to service year requirements.
Employees Covered by Benefit Term
Active employees 87
71
-
Total 158
Inactive employees, spouses, or beneficiaries currently receiving benefit payments
Inactive employees entitled to but not yet receiving benefit payments
Contributions
The City makes contributions based on an actuarially determined rate.
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2018, and the total OPEB liability used to calculate the net
OPEB liability was determined by an actuarial valuation as of June 30, 2017.
Actuarial Assumptions
The total OPEB liability in the June 30, 2017 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Cost Method
Actuarial Assumptions:
Inflation 2.50%
Salary increases
Investment rate of return 6.50%
Healthcare cost trend rates
Mortality rate Derived using CalPERS’ Membership Data for all Funds.
6.80% for FY2018, trending down to 4.00% in FY2076 and later years.
Base salary increases in subsequent years: 2.75%
Additional merit-based increases based on CalPERS.
Entry age normal level percentage of salary
Base salary increases in year one: 2.75%
Discount Rate
The discount rate used to measure the total OPEB liability was 6.50%. The projection of cash flows used to determine
the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined
contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to cover all
future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
79
Note 10 – Other Postemployment Benefits (“OPEB”) Plan (Continued)
Changes in the Net OPEB Liability
Total OPEB Fiduciary Net Net OPEB
Liability Position Liability
Balances as of June 30, 2017 11,221,034$ 4,354,552$ 6,866,482$
Changes during the measurement period:
Service cost 275,665 - 275,665
Interest 786,251 - 786,251
Differences between expected and actual experience - - -
Change of assumptions (413,262) - (413,262)
Contributions:
Employer - City's contribution - 720,871 (720,871)
Employer - implicit subsidy - 123,043 (123,043)
Employee - - -
Net investment income - 346,820 (346,820)
Other additions - 3,763 (3,763)
Benefit payments, including refunds of employee
Contributions (406,031) (406,031) -
Implicit rate subsidy fulfilled (123,043) (123,043) -
Administrative expenses - (2,323) 2,323
Other deductions - (5,765) 5,765
Net changes during measurement period 2017-2018 119,580 657,335 (537,755)
Balances as of June 30, 2018 (Measurement Date) 11,340,614$ 5,011,887$ 6,328,727$
Increase (Decrease)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a
discount rate that is one percentage point lower (5.50%) or one percentage point higher (7.50%) follows:
Discount Rate Current Discount Discount Rate
- 1% (5.50%) Rate (6.50%) + 1% (7.50%)
7,783,201$ 6,328,727$ 5,123,630$
Net OPEB Liability/(Asset)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates
The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using
healthcare cost trend rates that are one percentage point lower (5.80%) or one percentage point higher (7.80%) than
current healthcare cost trend rates follows:
Healthcare
1% Decrease Cost Trend Rate 1% Increase
(5.80% to 3.00%)(6.80% to 4.00%) (7.80% to 5.00%)
4,936,318$ 6,328,727$ 8,037,720$
Net OPEB Liability/(Asset)
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
80
Note 10 – Other Postemployment Benefits (“OPEB”) Plan (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2019, the City recognized an OPEB expense of $663,628. At June 30, 2019, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred outflows Deferred inflows
of Resources of Resources
OPEB contribution after measurement date 847,033$ -$
Difference between expected and actual experience - -
Changes of assumptions - (348,487)
Difference between projected and actual earning on
OPEB plan investments - (107,719)
Total 847,033$ (456,206)$
Deferred outflows of resources related to OPEB resulting from City’s contributions subsequent to the measurement
date in the amount of $847,033 will be recognized as a reduction of the net OPEB liability in the year ended
June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Measurement
Period Ending
June 30,
Deferred
Outflows/
(Inflows) of
Resources
2019 (97,875)$
2020 (97,875)
2021 (97,876)
2022 (73,193)
2023 (64,775)
Thereafter (24,612)
(456,206)$
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
81
Note 11 – Classification of Fund Balances
At June 30, 2019, fund balances are classified in the governmental funds as follows:
Capital Projects
and Equipment Nonmajor
General Capital Projects Governmental
Fund Fund Funds Total
Nonspendable:
Prepaid items 33,795$ -$ -$ 33,795$
Restricted:
Employee benefits 5,419 - - 5,419
Supplemental Law Enforcement - - 127,604 127,604
Detention Center - - 19,166 19,166
Air Quality Improvement Projects - - 8,754 8,754
Parks Improvement - - 16,977 16,977
Traffic Impact - - 168,413 168,413
State Gasoline Tax - - 700,640 700,640
Measure M2 - - 1,292,460 1,292,460
Community Development Block Grant - - 10,241 10,241
Landscape District - - 510,680 510,680
Heron Pointe - - 66,070 66,070
Pacific Gateway - - 131,487 131,487
Seal Beach Cable - - 393,937 393,937
SB 1 - - 440,954 440,954
Citywide Grants - - 278,156 278,156
City Debt Service - - 654,454 654,454
Total restricted 5,419 - 4,819,993 4,825,412
Assigned:
College Park East 477,000 - - 477,000
Swimming Pool 4,702,270 - - 4,702,270
Economic Contingency 1,750,000 - - 1,750,000
Street Improvement 117,167 - - 117,167
Buildings 43,250 - - 43,250
Community Services 3,062,817 - - 3,062,817
Total assigned 10,152,504 - - 10,152,504
Unassigned (deficit)11,922,370 (274,111) (151,528) 11,496,731
Total fund balances 22,114,088$ (274,111)$ 4,668,465$ 26,508,442$
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
82
Note 12 – Commitments and Contingencies
A. Commitments
The City had several outstanding or planned construction and other projects as of June 30, 2019. These projects
are evidenced by contractual commitments with contractors and include:
Project Name
Contract
Amount
Expenditures to
date as of June
30, 2019
Remaining
Commitments
New swimming pool 238,930$ $ 79,614 159,316$
Pier improvement project 7,537,581 133,130 7,404,451
Main St Streetlight Rehabilitation 88,000 - 88,000
Bolsa Chica Well Preliminary Study 42,840 7,400 35,440
Lampson Well Treatment Analysis 33,200 - 33,200
Water Meter Replacement 116,014 - 116,014
6th Street Alley Sewer Repair 180,928 9,985 170,943
8,237,493$ 230,129$ 8,007,364$
B. Contingencies
The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While
substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.
C. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies.
While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the
Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may
result in disallowed costs. In the opinion of management, future disallowances of current or prior grant
expenditures, if any, would not have a material adverse effect on the financial position of the City.
City of Seal Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2019
83
Note 13 – Individual Fund Disclosure
A. Expenditures in Excess of Appropriation
The following funds report expenditures in excess of appropriations for the year ended June 30, 2019.
Expenditures
in Excess of
Expenditures Appropriations Appropriations
Nonmajor Governmental Funds:
Nonmajor Special Revenue Funds:
Air Quality Improvement
Public works 33,232$ 30,600$ (2,632)$
Measure M2
Public works 1,500 - (1,500)
Landscape District
Community development 120,895 92,400 (28,495)
Pacific Gateway
Community development 98,251 84,900 (13,351)
Nonmajor Debt Service Fund:
City Debt Service Fund
Pricipal retirement 1,683,000 1,583,000 (100,000)
Interest and fiscal charges 132,957 123,000 (9,957)
B. Deficit Net Positions and Fund Balances
Funds with deficit fund balances at June 30, 2019 are as follows:
Deficit
Capital Projects and Equipments
Capital Projects Fund (274,111)$
Police Asset Forfeiture Special
Revenue Fund (44,818)
Police Grants Special Revenue Fund (106,710)
The City plans to eliminate the deficit fund balances with future grant revenues.
84
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REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
85
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86
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 22,892,500$ 22,892,500$ 24,058,500$ 1,166,000$
Licenses and permits 1,293,500 1,293,500 1,416,737 123,237
Intergovernmental 2,001,700 6,092,200 312,884 (5,779,316)
Charges for services 5,007,700 5,007,700 4,756,632 (251,068)
Use of money and property 775,900 775,900 1,684,303 908,403
Fines and forfeitures 1,375,500 1,375,500 946,048 (429,452)
Contributions 77,000 77,000 5,994 (71,006)
Miscellaneous 424,100 424,100 2,319,864 1,895,764
Total revenues 33,847,900 37,938,400 35,500,962 (2,437,438)
Expenditures:
Current:
General government 6,096,900 6,209,900 6,086,226 123,674
Public safety 18,749,500 19,064,800 18,828,910 235,890
Community development 1,081,800 1,196,900 1,039,200 157,700
Community services 990,900 990,900 942,804 48,096
Public works 4,912,100 4,975,000 4,928,457 46,543
Debt service:
Principal retirement 73,100 73,100 71,905 1,195
Interest and fiscal charges 18,700 18,700 19,906 (1,206)
Total expenditures 31,923,000 32,529,300 31,917,408 611,892
Revenues over (under) expenditures 1,924,900 5,409,100 3,583,554 (1,825,546)
Other Financing Sources (Uses):
Transfers in 4,594,100 511,200 509,600 (1,600)
Transfers out (10,364,100) (15,084,500) (7,797,600) 7,286,900
Total other financing sources (uses)(5,770,000) (14,573,300) (7,288,000) 7,285,300
Net change in fund balance (3,845,100)$ (9,164,200)$ (3,704,446) 5,459,754$
Fund Balance:
Beginning of year 25,818,534
End of year 22,114,088$
City of Seal Beach
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2019
Budgeted Amounts
Budgetary Comparison Schedule – General Fund
87
City of Seal Beach
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2019
Budgetary Control and Accounting Policy
The City prepares its budgets on the basis of estimated revenues and expenditures and, accordingly, the budget amounts included in
the accompanying financial statements are presented on a basis substantially consistent with generally accepted accounting principles.
Encumbrance accounting is utilized during the fiscal year, whereby purchase orders, contracts and other commitmentsare recorded in
order to control appropriations. However, at fiscal year end, all appropriations lapse. Accordingly, encumbrances are cancelled and
generally are re-appropriated as part of the following year’s budget. Encumbrances are not included in reported expenditures.
Annual budgets are adopted for the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds, except
for Parks Improvement Special Revenue Fund and SB1 Special Revenue Fund. The City Council approves total budgeted
appropriations and any amendments to appropriations throughout the year.
The budgetary level of control for all governmental fund types is the fund level. The City Manager has the discretion to transfer
appropriations between departments within a fund, but transfers between funds must be approved by the City Council.
88
Measurement Date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 1
City's Proportion of the Net Pension Liability 0.12641% 0.12396% 0.12144% 0.11333% 0.11644%
City's Proportionate Share of the Net Pension Liability 12,180,833$ 12,293,741$ 10,508,345$ 7,778,736$ 7,245,313$
City's Covered Payroll 4,713,200$ 4,385,712$ 4,226,024$ 4,710,212$ 4,503,370$
City's Proportionate Share of the Net Pension Liability
as a Percentage of its Covered Payroll 258.44% 280.31% 248.66% 165.15% 160.89%
Plan's Proportionate Share of the Fiduciary Net Position
as a Percentage of the Total Pension Liability 75.18% 75.11% 76.88% 82.15% 83.18%
Measurement Date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 1
City's Proportion of the Net Pension Liability 0.25383% 0.24294% 0.24301% 0.23685% 0.19002%
City's Proportionate Share of the Net Pension Liability 24,459,736$ 24,093,096$ 21,027,509$ 16,257,122$ 11,823,793$
City's Covered Payroll 4,833,363$ 4,200,942$ 4,454,998$ 4,734,950$ 4,290,168$
City's Proportionate Share of the Net Pension Liability
as a Percentage of its Covered Payroll 506.06% 573.52% 472.00% 343.34% 275.60%
Plan's Proportionate Share of the Fiduciary Net Position
as a Percentage of the Total Pension Liability 72.12% 72.09% 73.44% 78.58% 81.42%
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan
California Public Employees' Retirement System ("CalPERS") Safety Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years will be presented as they
become available.
City of Seal Beach
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios
For the Year Ended June 30, 2019
Last Ten Fiscal Years
89
Fiscal year end 2018-19
Actuarially Determined Contribution 1,076,211$
Contribution in Relation to the
Actuarially Determined Contribution (1,076,211)
Contribution Deficiency (Excess)-$
Covered Payroll2 4,854,596$
Contributions as a Percentage
of Covered Payroll 22.17%
Fiscal year 2018-19
Actuarially Determined Contribution 2,509,250$
Contribution in Relation to the
Actuarially Determined Contribution (2,509,250)
Contribution Deficiency (Excess)-$
Covered Payroll2 4,978,364$
Contributions as a Percentage
of Covered Payroll 50.40%
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan
California Public Employees' Retirement System ("CalPERS") Safety Plan
Changes of Assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and
Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from
7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent
(net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were
based on the 7.5 percent discount rate.
Benefit Changes: There were no changes to benefit terms.
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years will be presented as they
become available.
2 Includes one year’s payroll growth using 3.00 percent payroll assumption from fiscal year 2016-17.
Notes to Schedule:
City of Seal Beach
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pension
For the Year Ended June 30, 2019
Last Ten Fiscal Years
90
Fiscal year end 2017-18 2016-17 2015-16 2014-15 2013-141
Actuarially Determined Contribution 911,168$ 791,754$ 709,945$ 734,255$ 614,667$
Contribution in Relation to the
Actuarially Determined Contribution (911,168) (791,754) (709,945) (734,255) (614,667)
Contribution Deficiency (Excess)-$ -$ -$ -$ -$
Covered Payroll2 4,713,200$ 4,385,712$ 4,226,024$ 4,710,212$ 4,597,510$
Contributions as a Percentage
of Covered Payroll 19.33%18.05%16.80%15.59%13.37%
Fiscal year 2017-18 2016-17 2015-16 2014-15 2013-141
Actuarially Determined Contribution 2,127,080$ 1,748,129$ 1,608,716$ 1,476,452$ 2,157,763$
Contribution in Relation to the
Actuarially Determined Contribution (2,127,080) (1,748,129) (1,608,716) (1,476,452) (2,157,763)
Contribution Deficiency (Excess)-$ -$ -$ -$ -$
Covered Payroll2 4,833,363$ 4,200,942$ 4,454,998$ 4,734,950$ 3,995,001$
Contributions as a Percentage
of Covered Payroll 44.01%41.61%36.11%31.18%54.01%
Benefit Changes: There were no changes to benefit terms.
Changes of Assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and
Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from
7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent
(net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were
based on the 7.5 percent discount rate.
Notes to Schedule:
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years will be presented as they
become available.
2 Includes one year’s payroll growth using 3.00 percent payroll assumption from fiscal year 2016-17.
California Public Employees' Retirement System ("CalPERS") Safety Plan
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan
City of Seal Beach
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2019
Last Ten Fiscal Years
Schedule of Contributions - Pension (Continued)
91
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92
Measurement period June 30, 2018 1 June 30, 2017 1
Total OPEB liability
Service cost 275,665$ 267,961$
Interest 786,251 752,721
Differences between expected and actual experience - -
Changes of assumption (413,262) -
Benefit payments (406,031) (454,685)
Inplicit rate subsidy fulfilled (123,043) (114,993)
Net change in total OPEB liability 119,580 451,004
Total OPEB liability, beginning 11,221,034 10,770,030
Total OPEB liability, ending (a)11,340,614$ 11,221,034$
OPEB fiduciary net position
Contributions:
Employer - City's contribution 720,871$ 567,185$
Employer - Implicit subidy 123,043 114,993
Net investment income 346,820 411,482
Other additions 3,763 -
Benefit payments (406,031) (454,685)
Inplicit rate subsidy fulfilled (123,043) (114,993)
Administrative expense (2,323) (1,995)
Other deductions (5,765) -
Net change in plan fiduciary net position 657,335 521,987
Plan fiduciary net position, beginning 4,354,552 3,832,565
Plan fiduciary net position, ending (b)5,011,887 4,354,552
Plan net OPEB liability - ending (a) - (b)6,328,727$ 6,866,482$
Plan's fiduciary net position as a percentage
of the total OPEB liability 44.19%38.81%
Covered payroll 9,518,945$ 8,807,230$
Net OPEB liability as a percentage of covered payroll 66.49%77.96%
1 Historical information is presented only for measurement periods for which GASB 75 is applicable.
City of Seal Beach
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios
For the Year Ended June 30, 2019
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
93
Fiscal year end 2018-19 2017-18
2016-17 1
Actuarially determined contribution2 755,936$ 833,241$ 812,317$
Contribution in relation to the actuarially
determined contribution 2 (847,033) (843,914) (682,178)
Contribution deficiency/(excess)(91,097)$ (10,673)$ 130,139$
Covered payroll3 9,792,615$ 9,518,945$ 8,807,230$
Contributions as a percentage of covered payroll 8.65%8.87%7.75%
Notes to Schedule:
Valuation date:
Actuarial cost method:
Amortization method:
Amortization period:
Inflation:
Assumed payroll growth:
Healthcare cost trend:
Rate of return on assets:
Mortality:
Retirement rates:
Other Postemployment Benefits ("OPEB")
City of Seal Beach
Required Supplementary Information (Unaudited)
Schedule of Contributions - Other Postemployment Benefits
For the Year Ended June 30, 2019
Last Ten Fiscal Years
CalPERS rates (Miscellaneous Rx PA Misc 2.0% at 55)
CalPERS rates (Miscellaneous Rx PA Misc 2.0% at 62)
CalPERS rates (Safety Rx Safety Police 3.0% at 50)
CalPERS rates (Safety Rx Safety Police 2.7% at 57)
1 Historical information is presented only for measurement periods for which GASB 75 is applicable.
2 The June 30, 2017 actuarial valuation provided the actuarially determined contributions for fiscal year ended June 30, 2018.
June 30, 2017
Methods and assumptions used to determine contribution rates:
18 years
3 Includes one year’s payroll growth using 2.875 percent payroll assumption from fiscal year 2017-18.
Entry age normal, level percent of pay
Closed period, level percent of pay
2.50% per year
6.50%
6.80%, trending down to 4.00%
2.75% year one and thereafter
CalPERS rates (Miscellaneous-Mort and Disb Rates_PA Misc)
CalPERS rates (Police Employees-Mort and Disb Rates_PA Police)
94
SUPPLEMENTARY INFORMATION
95
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96
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Expenditures:
Capital outlay 10,781,300$ 16,031,400$ 7,378,774$ 8,652,626$
Other Financing Sources:
Transfers in 10,781,300 16,031,400 7,107,919 (8,923,481)
Net change in fund balances -$ -$ (270,855) (270,855)$
Fund Balance:
Beginning of Year (3,256)
End of Year (274,111)$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual
Capital Projects and Equipment Capital Projects Fund
For the Year Ended June 30, 2019
97
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98
Citywide Grants Special Revenue Fund – The Citywide Grants Special Revenue Fund is used to account for various Federal and
State grants that are restricted to expenditures for specific projects or purposes.
City Debt Service Debt Service Fund : To accounts for resources that are restricted for the payments of long-term debt.
Pacific Gateway Special Revenue Fund : To account for special assessment that are restricted for costs related to the maintenance
of parks, parkways and open space within the District (Landscape Maintenance).
SB 1 Special Revenue Fund : To account for revenue restricted for a wide range of transportation improvement projects.
Seal Beach Cable Special Revenue Fund : To account for revenues derived from PEGS fees which provide for channel capacity to
be designated for public, education, or government use.
Heron Pointe Special Revenue Fund : To account for the construction and acquisition of certain public street improvements, water
and sanitary sewer improvements, dry utility improvements, park and landscaping improvements.
NONMAJOR GOVERNMENTAL FUNDS
Detention Center Special Revenue Fund : To account for funds initially funded by monies seeded the previous jail services vendor.
The revenues also derived from sales of commissary items to the prisoners for their benefit.
Police Asset Forfeiture Special Revenue Fund : To accounts for revenues derived from monies and property seized in drug-related
incidents.
Street Lighting Special Revenue Fund : To account for special assessments that are restricted for the maintenance of streetlights and
to finance the electricity used by the streetlights.
Police Grants Special Revenue Fund : To account for various grants include the Urban Area Security Initiative (UASI), the Office
of Traffic Safety (OTS) DUI grant reimburses funds advanced by the City for DUI enforcement, the Bullet Proof Vest Protection
(BVP) grant which provides matching funds that are restricted for the purchase of bullet-resistant vests, the Alcoholic Beverage
Control (ABC) grant and the Justice Assistance Grant (JAG).
Supplemental Law Enforcement Special Revenue Fund : To account for funds received from the State under the State Citizens
Option for Public Safety Program. Certain procedures are required to be implemented prior to the use of the funds, and the funds
cannot be used to supplant existing funding for law enforcement.
Air Quality Improvement Special Revenue Fund : To accounts for supplemental vehicle license fee revenue distributed to Cities by
the South Coast Air Quality Management District pursuant to Assembly Bill 2766. Expenditures are restricted for programs that will
reduce air pollution by reducing, directly or indirectly, mobile source emission pollutants.
Park Improvement Special Revenue Fund : To account for the Quimby Act Fees received by developers that are restricted for the
improvement of parks and recreation facilities.
Traffic Impact Special Revenue Fund : To account for fair-share based fees that will serve to offset, or mitigate, the traffic impacts
caused by new development.
State Gasoline Tax Special Revenue Fund : To accounts for locally shared gas tax monies collected by the State. Expenditures are
restricted for repair, construction, maintenance and right-of-way acquisitions relating to streets and highways.
Measure M2 Special Revenue Fund : To account for funds for transportation improvements through the Measure M Transportation
Investment Plan (M2) such as major improvement plans target Orange County freeways, streets and roads, transit and environmental
Community Development Block Grant (CDBG) Special Revenue Fund : To account for resources that are restricted for a wide
variety of unique community development needs.
Landscape District Special Revenue Fund : To account for special assessment that are restricted for costs related to the maintenance
of parks, parkways and open space within the Community Facility District 2002-02 (Landscape Maintenance).
99
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100
Supplemental
Street Law Detention Police Asset
Lighting Enforcement Center Forfeiture
ASSETS
Cash and investments 11,852$ 131,205$ 19,564$ 4,906$
Receivables:
Accounts - - 864 -
Taxes 804 - - -
Interest - - - -
Due from other governments - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets 12,656$ 131,205$ 20,428$ 4,906$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 12,656$ 3,600$ 1,262$ -$
Accrued wages and benefits payable - - - 6,934
Unearned revenues - - - -
Due to other funds - - - 42,790
Retentions payable - - - -
Total Liabilities 12,656 3,600 1,262 49,724
Deferred Inflows of Resources:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:
Restricted - 127,605 19,166 -
Unassigned (deficit) - - - (44,818)
Total Fund Balances - 127,605 19,166 (44,818)
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 12,656$ 131,205$ 20,428$ 4,906$
Special Revenue
City of Seal Beach
Combining Balance Sheet
June 30, 2019
Nonmajor Governmental Funds
101
Air Quality Park Traffic State
Improvement Improvement Impact Gasoline Tax
ASSETS
Cash and investments 16$ 16,977$ 168,413$ 700,640$
Receivables:
Accounts 8,737 - - -
Taxes - - - -
Interest - - - -
Due from other governments - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets 8,753$ 16,977$ 168,413$ 700,640$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities -$ -$ -$ -$
Accrued wages and benefits payable - - - -
Unearned revenues - - - -
Due to other funds - - - -
Retentions payable - - - -
Total Liabilities - - - -
Deferred Inflows of Resources:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:
Restricted 8,753 16,977 168,413 700,640
Unassigned (deficit)- - - -
Total Fund Balances 8,753 16,977 168,413 700,640
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 8,753$ 16,977$ 168,413$ 700,640$
(Continued)
Special Revenue
City of Seal Beach
Combining Balance Sheet (Continued)
June 30, 2019
Nonmajor Governmental Funds
102
Community
Development Police Landscape
Measure M2 Block Grant Grants District
ASSETS
Cash and investments 1,228,431$ -$ -$ 515,653$
Receivables:
Accounts 64,030 38,047 9,488 -
Taxes - - - 779
Interest - - - -
Due from other governments - - 14,444 -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets 1,292,461$ 38,047$ 23,932$ 516,432$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities -$ -$ -$ 3,557$
Accrued wages and benefits payable - - - 2,195
Unearned revenues - - 18,550 -
Due to other funds - 27,806 97,648 -
Retentions payable - - - -
Total Liabilities - 27,806 116,198 5,752
Deferred Inflows of Resources:
Unavailable revenues - - 14,444 -
Total Deferred Inflows of Resources - - 14,444 -
Fund Balances:
Restricted 1,292,461 10,241 - 510,680
Unassigned (deficit) - - (106,710) -
Total Fund Balances 1,292,461 10,241 (106,710) 510,680
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 1,292,461$ 38,047$ 23,932$ 516,432$
City of Seal Beach
Special Revenue
Nonmajor Governmental Funds
Combining Balance Sheet (Continued)
June 30, 2019
103
Pacific Seal Beach
Heron Pointe Gateway Cable SB 1
ASSETS
Cash and investments 66,147$ 135,528$ 366,114$ 400,584$
Receivables:
Accounts - - 29,236 -
Taxes - - - 40,369
Interest - - 958 -
Due from other governments - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets 66,147$ 135,528$ 396,308$ 440,953$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 77$ 1,846$ 2,371$ -$
Accrued wages and benefits payable - 2,195 - -
Unearned revenues - - - -
Due to other funds - - - -
Retentions payable - - - -
Total Liabilities 77 4,041 2,371 -
Deferred Inflows of Resources:
Unavailable revenues - - - -
Total Deferred Inflows of Resources - - - -
Fund Balances:
Restricted 66,070 131,487 393,937 440,953
Unassigned (deficit) - - - -
Total Fund Balances 66,070 131,487 393,937 440,953
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 66,147$ 135,528$ 396,308$ 440,953$
(Continued)
Special Revenue
City of Seal Beach
Combining Balance Sheet (Continued)
June 30, 2019
Nonmajor Governmental Funds
104
Special Revenue Debt Service
Total Other
Citywide City Debt Governmental
Grants Service Funds
ASSETS
Cash and investments 200,556$ -$ 3,966,586$
Receivables:
Accounts 77,600 - 228,002
Taxes - - 41,952
Interest - - 958
Due from other governments - - 14,444
Restricted assets:
Cash and investments with fiscal agents - 654,454 654,454
Total Assets 278,156$ 654,454$ 4,906,396$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities -$ -$ 25,369$
Accrued wages and benefits payable - - 11,324
Unearned revenues - - 18,550
Due to other funds - - 168,244
Retentions payable - - -
Total Liabilities - - 223,487
Deferred Inflows of Resources:
Unavailable revenues - - 14,444
Total Deferred Inflows of Resources - - 14,444
Fund Balances:
Restricted 278,156 654,454 4,819,993
Unassigned (deficit) - - (151,528)
Total Fund Balances 278,156 654,454 4,668,465
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 278,156$ 654,454$ 4,906,396$
(Concluded)
City of Seal Beach
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2019
105
Supplemental
Street Law Detention Police Asset
Lighting Enforcement Center Forfeiture
Revenues:
Taxes 140,484$ -$ -$ -$
Intergovernmental - 148,747 - 34,745
Charges for services - - 1,302 -
Use of money and property - 2,040 7,379 367
Contributions - - - -
Total revenues 140,484 150,787 8,681 35,112
Expenditures:
Current:
General government - - - -
Public safety - 88,151 7,459 207,348
Community development - - - -
Public works 195,414 - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 195,414 88,151 7,459 207,348
Revenues over (under) expenditures (54,930) 62,636 1,222 (172,236)
Other Financing Sources (Uses):
Transfers in 54,930 - - -
Transfers out - - - -
Total other financing sources (uses)54,930 - - -
Net change in fund balances - 62,636 1,222 (172,236)
Fund Balance:
Beginning of Year - 64,969 17,944 127,418
End of Year -$ 127,605$ 19,166$ (44,818)$
(Continued)
Special Revenue
For the Year Ended June 30, 2019
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
City of Seal Beach
Nonmajor Governmental Funds
106
Air Quality Park Traffic State
Improvement Improvement Impact Gasoline Tax
Revenues:
Taxes -$ -$ -$ 496,109$
Intergovernmental 33,703 - - -
Charges for services - - - -
Use of money and property 62 317 3,141 11,188
Contributions - - - -
Total revenues 33,765 317 3,141 507,297
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Public works 33,232 - - 1,770
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 33,232 - - 1,770
Revenues over (under) expenditures 533 317 3,141 505,527
Other Financing Sources (Uses):
Transfers in - - 270 -
Transfers out - - - (295,053)
Total other financing sources (uses)- - 270 (295,053)
Net change in fund balances 533 317 3,411 210,474
Fund Balance:
Beginning of Year 8,220 16,660 165,002 490,166
End of Year 8,753$ 16,977$ 168,413$ 700,640$
Special Revenue
City of Seal Beach
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
For the Year Ended June 30, 2019
Nonmajor Governmental Funds
107
Community
Development Police Landscape
Measure M2 Block Grant Grants District
Revenues:
Taxes 436,679$ -$ -$ 177,218$
Intergovernmental 540 180,000 32,933 -
Charges for services - - - -
Use of money and property 23,122 - - 8,776
Contributions - - - -
Total revenues 460,341 180,000 32,933 185,994
Expenditures:
Current:
General government - - - -
Public safety - - 108,740 -
Community development - 180,000 - 120,895
Public works 1,500 - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 1,500 180,000 108,740 120,895
Revenues over (under) expenditures 458,841 - (75,807) 65,099
Other Financing Sources (Uses):
Transfers in - - - -
Transfers out (205,594) - - (13,000)
Total other financing sources (uses)(205,594) - - (13,000)
Net change in fund balances 253,247 - (75,807) 52,099
Fund Balance:
Beginning of Year 1,039,214 10,241 (30,903) 458,581
End of Year 1,292,461$ 10,241$ (106,710)$ 510,680$
(Continued)
Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
City of Seal Beach
For the Year Ended June 30, 2019
108
Pacific Seal Beach
Heron Pointe Gateway Cable SB1
Revenues:
Taxes -$ 64,836$ -$ 529,254$
Intergovernmental - - - -
Charges for services - - 120,471 -
Use of money and property - - 7,330 4,589
Contributions 15,000 25,000 - -
Total Revenues 15,000 89,836 127,801 533,843
Expenditures:
Current:
General government - - 83,264 -
Public safety - - - -
Community development 7,679 98,251 - -
Public works - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total Expenditures 7,679 98,251 83,264 -
Revenues over (under) expenditures 7,321 (8,415) 44,537 533,843
Other Financing Sources (Uses):
Transfers in - - - -
Transfers out (11,000) (5,617) (14,019) (214,528)
Total other financing sources (uses)(11,000) (5,617) (14,019) (214,528)
Net Change in Fund Balances (3,679) (14,032) 30,518 319,315
Fund Balance:
Beginning of Year 69,749 145,519 363,419 121,638
End of Year 66,070$ 131,487$ 393,937$ 440,953$
(Continued)
Special Revenue
City of Seal Beach
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
For the Year Ended June 30, 2019
Nonmajor Governmental Funds
109
Special Revenue Debt Service
Total Other
Citywide City Debt Governmental
Grants Service Funds
Revenues:
Taxes -$ -$ 1,844,580$
Intergovernmental 114,371 - 545,039
Charges for services - - 121,773
Use of money and property - 20,161 88,472
Contributions - - 40,000
Total revenues 114,371 20,161 2,639,864
Expenditures:
Current:
General government - - 83,264
Public safety - - 411,698
Community development - - 406,825
Public works - - 231,916
Capital outlay - - -
Debt service:
Principal - 1,683,000 1,683,000
Interest and fiscal charges - 132,957 132,957
Total expenditures - 1,815,957 2,949,660
Revenues over (under) expenditures 114,371 (1,795,796) (309,796)
Other Financing Sources (Uses):
Transfers in - 1,709,263 1,764,463
Transfers out (107,046) - (865,857)
Total other financing sources (uses)(107,046) 1,709,263 898,606
Net change in fund balances 7,325 (86,533) 588,810
Fund Balance:
Beginning of Year 270,831 740,987 4,079,655
End of Year 278,156$ 654,454$ 4,668,465$
(Concluded)
City of Seal Beach
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2019
110
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 141,700$ 141,700$ 140,484$ (1,216)$
Expenditures:
Current:
Public works 196,400 196,400 195,414 986
Revenues over (under) expenditures (54,700) (54,700) (54,930) (230)
Other Financing Sources:
Transfers in 54,700 54,700 54,930 230
Net change in fund balances -$ -$ - -$
Fund Balance:
Beginning of Year -
End of Year -$
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2019
Budgeted Amounts
Street Lighting Special Revenue Fund
111
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 130,000$ 130,000$ 148,747$ 18,747$
Use of money and property 700 700 2,040 1,340
Total revenues 130,700 130,700 150,787 20,087
Expenditures:
Current:
Public safety 116,200 116,200 88,151 28,049
Revenues over (under) expenditures 14,500 14,500 62,636 48,136
Net change in fund balances 14,500$ 14,500$ 62,636 48,136$
Fund Balance:
Beginning of Year 64,969
End of Year 127,605$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Supplemental Law Enforcement Special Revenue Fund
For the Year Ended June 30, 2019
112
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 100$ 100$ 1,302$ 1,202$
Use of money or property 10,000 10,000 7,379 (2,621)
Total revenues 10,100 10,100 8,681 (1,419)
Expenditures:
Current:
Public safety 20,000 20,000 7,459 12,541
Revenues over (under) expenditures (9,900) (9,900) 1,222 11,122
Net change in fund balances (9,900)$ (9,900)$ 1,222 11,122$
Fund Balance:
Beginning of Year 17,944
End of Year 19,166$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Detention Center Special Revenue Fund
For the Year Ended June 30, 2019
113
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 250,000$ 250,000$ 34,745$ (215,255)$
Use of money and property 1,600 1,600 367 (1,233)
Total revenues 251,600 251,600 35,112 (216,488)
Expenditures:
Current:
Public safety 365,200 365,200 207,348 157,852
Revenues over (under) expenditures (113,600) (113,600) (172,236) (58,636)
Net change in fund balances (113,600)$ (113,600)$ (172,236) (58,636)$
Fund Balance:
Beginning of Year 127,418
End of Year (44,818)$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Police Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2019
114
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 30,000$ 30,000$ 33,703$ 3,703$
Use of money and property - - 62 62
Total revenues 30,000 30,000 33,765 3,765
Expenditures:
Current:
Public works 30,600 30,600 33,232 (2,632)
Revenues over (under) expenditures (600) (600) 533 1,133
Net change in fund balances (600)$ (600)$ 533 1,133$
Fund Balance:
Beginning of Year 8,220
End of Year 8,753$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Air Quality Improvement Special Revenue Fund
For the Year Ended June 30, 2019
115
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Use of money and property 4,000$ 4,000$ 3,141$ (859)$
Other Financing Sources:
Transfers in - - 270 270
Total other financing sources - - 270 270
Net change in fund balances 4,000$ 4,000$ 3,411 (589)$
Fund Balance:
Beginning of Year 165,002
End of Year 168,413$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Traffic Impact AB 1600 Special Revenue Fund
For the Year Ended June 30, 2019
116
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 640,900$ 640,900$ 496,109$ (144,791)$
Use of money and property 5,000 5,000 11,188 6,188
Total revenues 645,900 645,900 507,297 (138,603)
Expenditures:
Current:
Public works 1,800 2,500 1,770 730
Revenues over (under) expenditures 644,100 643,400 505,527 (137,873)
Other Financing Uses:
Transfers out (412,400) (560,900) (295,053) 265,847
Net change in fund balances 231,700$ 82,500$ 210,474 127,974$
Fund Balance:
Beginning of Year 490,166
End of Year 700,640$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
State Gasoline Tax Special Revenue Fund
For the Year Ended June 30, 2019
117
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 380,000$ 380,000$ 436,679$ 56,679$
Intergovernmental 4,000 4,000 540 (3,460)
Use of money and property 8,000 8,000 23,122 15,122
Total revenues 392,000 392,000 460,341 68,341
Expenditures:
Current:
Public works - - 1,500 (1,500)
Revenues over (under) expenditures 392,000 392,000 458,841 66,841
Other Financing Sources:
Transfers out (1,107,800) (1,029,800) (205,594) 824,206
Net change in fund balances (715,800)$ (637,800)$ 253,247 891,047$
Fund Balance:
Beginning of Year 1,039,214
End of Year 1,292,461$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Measure M2 Special Revenue Fund
For the Year Ended June 30, 2019
118
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 180,000$ 180,000$ 180,000$ -$
Expenditures:
Current:
Community development 180,000 180,000 180,000 -
Net change in fund balances -$ -$ - -$
Fund Balance:
Beginning of Year 10,241
End of Year 10,241$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2019
119
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 110,000$ 173,300$ 32,933$ (140,367)$
Expenditures:
Current:
Public safety 77,300 140,600 108,740 31,860
Revenues over (under) expenditures 32,700 32,700 (75,807) (108,507)
Net change in fund balances 32,700$ 32,700$ (75,807) (108,507)$
Fund Balance:
Beginning of Year (30,903)
End of Year (106,710)$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Police Grant Special Revenue Fund
For the Year Ended June 30, 2019
120
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 166,700$ 166,700$ 177,218$ 10,518$
Use of money and property 2,000 2,000 8,776 6,776
Total revenues 168,700 168,700 185,994 17,294
Expenditures:
Current:
Community development 92,400 92,400 120,895 (28,495)
Revenues over (under) expenditures 76,300 76,300 65,099 (11,201)
Other Financing Uses:
Transfers out (13,000) (13,000) (13,000) -
Net change in fund balances 63,300$ 63,300$ 52,099 (11,201)$
Fund Balance:
Beginning of Year 458,581
End of Year 510,680$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Landscape District Special Revenue Fund
For the Year Ended June 30, 2019
121
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenue:
Contributions 15,000$ 15,000$ 15,000$ -$
Expenditures:
Current:
Community development 8,000 8,000 7,679 321
Revenues over (under) expenditures 7,000 7,000 7,321 321
Other Financing Uses:
Transfers out (11,000) (11,000) (11,000) -
Net change in fund balances (4,000)$ (4,000)$ (3,679) 321$
Fund Balance:
Beginning of Year 69,749
End of Year 66,070$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Heron Pointe Special Revenue Fund
For the Year Ended June 30, 2019
122
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 58,000$ 58,000$ 64,836$ 6,836$
Contributions 25,000 25,000 25,000 -
Total revenues 83,000 83,000 89,836 6,836
Expenditures:
Current:
Community development 84,900 84,900 98,251 (13,351)
Revenues over (under) expenditures (1,900) (1,900) (8,415) (6,515)
Other Financing Uses:
Transfers out (26,000) (26,000) (5,617) 20,383
Net change in fund balances (27,900)$ (27,900)$ (14,032) 13,868$
Fund Balance:
Beginning of Year 145,519
End of Year 131,487$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Pacific Gateway Special Revenue Fund
For the Year Ended June 30, 2019
123
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 100,000$ 100,000$ 120,471$ 20,471$
Use of money and property 3,000 3,000 7,330 4,330
Total revenues 103,000 103,000 127,801 24,801
Expenditures:
Current:
General government 75,000 105,000 83,264 21,736
Revenues over (under) expenditures 28,000 (2,000) 44,537 46,537
Other Financing Uses:
Transfers out (40,000) (40,000) (14,019) 25,981
Net change in fund balances (12,000)$ (42,000)$ 30,518 72,518$
Fund Balance:
Beginning of Year 363,419
End of Year 393,937$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Seal Beach Cable Special Revenue Fund
For the Year Ended June 30, 2019
124
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental -$ 250,000$ 114,371$ (135,629)$
Other Financing Uses:
Transfers out (68,000) (250,000) (107,046) 142,954
Net change in fund balances (68,000)$ -$ 7,325 7,325$
Fund Balance:
Beginning of Year 270,831
End of Year 278,156$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Budgetary Comparison Schedule – Citywide Grants Special Revenue Fund
For the Year Ended June 30, 2019
125
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Use of money and property -$ -$ 20,161$ 20,161$
Expenditures:
Debt service:
Principal retirement 1,583,000 1,583,000 1,683,000 (100,000)
Interest and fiscal charges 123,000 123,000 132,957 (9,957)
Total Expenditures 1,706,000 1,706,000 1,815,957 (109,957)
Revenues over (under) expenditures (1,706,000) (1,706,000) (1,795,796) (89,796)
Other Financing Sources:
Transfers in 1,706,000 1,706,000 1,709,263 3,263
Net change in fund balances -$ -$ (86,533) (86,533)$
Fund Balance:
Beginning of Year 740,987
End of Year 654,454$
Budgeted Amounts
City of Seal Beach
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
City Debt Service Fund
For the Year Ended June 30, 2019
126
AGENCY FUNDS FINANCIAL STATEMENTS
127
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128
Community Community
Facilities Facilities
District District - Heron
Deposits Heron Pointe Pacific Gateway Total
Assets:
Cash and investments 77,062$ 99,169$ 171,407$ 347,638$
Restricted assets:
Cash and investments with fiscal agents - 259,330 706,061 965,391
Accounts receivables - 5,051 - 5,051
Total Assets 77,062$ 363,550$ 877,468$ 1,318,080$
Liabilities:
Deposits payable 77,062$ -$ -$ 77,062$
Due to bondholders - 363,550 877,468 1,241,018
Total Liabilities 77,062$ 363,550$ 877,468$ 1,318,080$
City of Seal Beach
Combining Statement of Assets and Liabilities
Agency Funds
June 30, 2019
129
Balance Balance
July 1, 2018 Additions Deletions June 30, 2019
Deposits
Assets:
Cash and investments 60,596$ 166,366$ (149,900)$ 77,062$
Total Assets 60,596$ 166,366$ (149,900)$ 77,062$
Liabilities:
Deposits payable 60,596$ 166,366$ (149,900)$ 77,062$
Total Liabilities 60,596$ 166,366$ (149,900)$ 77,062$
Community Facilities District
Heron Pointe
Assets:
Cash and investments 96,712$ 259,770$ (257,313)$ 99,169$
Restricted assets:
Cash and investments with fiscal agents 256,832 5,442 (2,944) 259,330
Accounts receivables - 5,051 - 5,051
Total Assets 353,544$ 270,263$ (260,257)$ 363,550$
Liabilities:
Due to bondholders 353,544$ 270,263$ (260,257)$ 363,550$
Total Liabilities 353,544$ 270,263$ (260,257)$ 363,550$
Community Facilities District
Pacific Gateway
Assets:
Cash and investments 155,684$ 517,500$ (501,777)$ 171,407$
Restricted assets:
Cash and investments with fiscal agents 700,335 14,799 (9,073) 706,061
Total Assets 856,019$ 532,299$ (510,850)$ 877,468$
Liabilities:
Due to bondholders 856,019$ 532,299$ (510,850)$ 877,468$
Total Liabilities 856,019$ 532,299$ (510,850)$ 877,468$
Agency Funds
For the Year Ended June 30, 2019
City of Seal Beach
Combining Statement of Changes in Assets and Liabilities
130
Balance Balance
July 1, 2018 Additions Deletions June 30, 2019
Total
Assets:
Cash and investments 312,992$ 943,636$ (908,990)$ 347,638$
Restricted assets:
Cash and investments with fiscal agents 957,167 20,241 (12,017) 965,391
Accounts receivables - 5,051 - 5,051
Total Assets 1,270,159$ 968,928$ (921,007)$ 1,318,080$
Liabilities:
Deposits payable 60,596$ 166,366$ (149,900)$ 77,062$
Due to bondholders 1,209,563 802,562 (771,107) 1,241,018
Total Liabilities 1,270,159$ 968,928$ (921,007)$ 1,318,080$
For the Year Ended June 30, 2019
City of Seal Beach
Combining Statement of Changes in Assets and Liabilities (Continued)
Agency Fund
131
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132
STATISTICAL SECTION
133
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134
Page
These schedules contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.136 - 145
These schedules contain information to help the reader assess the factors affecting the City's ability
to generate it's property and sales taxes.146 - 149
These schedules present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.150 - 156
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place and to help make comparisons
over time and with other governments.157 - 158
These schedules contain information about the City's operations and resources to help the reader
understand how the City's financial information relates to the services the City provides and the
activities it performs.159 - 162
Demographic and Economic Information
Operating Information
Statistical Section
Description of Statistical Section Contents
City of Seal Beach
For the Year Ended June 30, 2019
This part of the City of Seal Beach comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the government’s overall financial health.
Financial Trends
Revenue Capacity
Debt Capacity
135
2010 2011 2012 2013 2014
Governmental activities:
Net investment in capital assets,64,607,970$ 68,117,517$ 70,801,667$ 73,693,829$ 72,498,068$
Restricted 6,190,852 5,179,337 2,662,285 3,271,671 4,426,990
Unrestricted 30,050,739 27,557,417 29,666,427 23,570,750 25,953,129
Total governmental activities net position 100,849,561$ 100,854,271$ 103,130,379$ 100,536,250$ 102,878,187$
Business-type activities:
Net investment in capital assets,27,416,082$ 29,552,934$ 32,020,831$ 32,645,747$ 32,360,440$
Restricted 294,407 - - - -
Unrestricted 14,376,270 13,633,764 11,318,443 12,593,950 15,532,304
Total business-type activities net position 42,086,759$ 43,186,698$ 43,339,274$ 45,239,697$ 47,892,744$
Primary government:
Net investment in capital assets,92,024,052$ 97,670,451$ 102,822,498$ 106,339,576$ 104,858,508$
Restricted 6,485,259 5,179,337 2,662,285 3,271,671 4,426,990
Unrestricted 44,427,009 41,191,181 40,984,870 36,164,700 41,485,433
Total primary government net position 142,936,320$ 144,040,969$ 146,469,653$ 145,775,947$ 150,770,931$
Source: Finance Department, City of Seal Beach.
City of Seal Beach
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
136
2017
2015 2016 (As Restated) 2018 2019
Governmental activities:
Net investment in capital assets, 74,296,935$ 73,939,948$ 72,399,752$ 72,667,466$ 87,071,592$
Restricted 3,842,792 3,866,679 4,587,081 4,207,675 4,825,412
Unrestricted 4,097,282 4,713,193 (3,660,561) (4,911,027) (9,873,029)
Total governmental activities net position 82,237,009$ 82,519,820$ 73,326,272$ 71,964,114$ 82,023,975$
Business-type activities:
Net investment in capital assets, 34,451,074$ 34,145,069$ 33,109,258$ 31,663,486$ 32,937,448$
Restricted - - 25,082 25,082
Unrestricted 12,470,553 13,544,158 12,625,701 14,709,960 13,656,457
Total business-type activities net position 46,921,627$ 47,689,227$ 45,734,959$ 46,398,528$ 46,618,987$
Primary government:
Net investment in capital assets, 108,748,009$ 108,085,017$ 105,509,010$ 104,330,952$ 120,009,040$
Restricted 3,842,792 3,866,679 4,587,081 4,232,757 4,850,494
Unrestricted 16,567,835 18,257,351 8,965,140 9,798,933 3,783,428
Total primary government net position 129,158,636$ 130,209,047$ 119,061,231$ 118,362,642$ 128,642,962$
Source: Finance Department, City of Seal Beach.
City of Seal Beach
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
137
2010 2011 2012 2013 2014
Expenses:
Governmental activities:
General government 6,462,182$ 8,135,200$ 6,477,795$ 5,373,180$ 5,040,070$
Public safety 14,322,026 13,493,413 14,152,774 15,005,590 15,999,900
Community development 3,332,329 1,654,009 1,372,334 1,781,188 1,306,898
Community services 1,109,303 1,040,723 940,754 1,272,680 1,079,006
Public works 7,745,817 6,304,343 6,577,233 6,212,516 6,902,521
Interest on long-term debt 889,721 1,012,516 693,065 574,763 487,221
Total governmental activities expenses 33,861,378 31,640,204 30,213,955 30,219,917 30,815,616
Business-type activities:
Water utility 4,063,497 4,005,747 4,165,575 4,267,840 4,439,797
Sewer utility 1,452,748 1,412,326 1,402,249 1,520,478 1,730,940
Total business-type activities expenses 5,516,245 5,418,073 5,567,824 5,788,318 6,170,737
Total primary government expenses 39,377,623 37,058,277 35,781,779 36,008,235 36,986,353
Program revenues:
Governmental activities:
Charges for services:
General government 2,190,386 1,770,024 1,462,840 450,911 1,632,975
Public safety 1,725,519 1,515,727 1,667,184 1,565,527 1,384,701
Community development 92,163 92,131 130,118 111,008 182,021
Community services 737,470 815,779 930,501 981,440 1,062,796
Public works 1,817,794 1,738,965 1,869,575 1,980,116 1,962,242
Operating contributions and grants 1,999,260 1,775,825 5,890,556 5,837,093 2,402,490
Capital grants and contributions 422,645 23,967 44,405 - 10,000
Total governmental activities
program revenues 8,985,237 7,732,418 11,995,179 10,926,095 8,637,225
Business-type activities:
Charges for services:
Water utility 5,655,433 4,190,824 4,376,906 4,924,109 5,092,152
Sewer utility 2,184,287 2,212,559 2,442,608 2,675,201 2,775,332
Total business-type activities
program revenues 7,839,720 6,403,383 6,819,514 7,599,310 7,867,484
Total primary government
program revenues 16,824,957 14,135,801 18,814,693 18,525,405 16,504,709
Net revenues (expenses):
Governmental activities (24,876,141) (23,907,786) (18,218,776) (19,293,822) (22,178,391)
Business-type activities 2,323,475 985,310 1,251,690 1,810,992 1,696,747
Total net revenues (expenses)(22,552,666)$ (22,922,476)$ (16,967,086)$ (17,482,830)$ (20,481,644)$
Source: Finance Department, City of Seal Beach.
City of Seal Beach
Changes in Net Position
Fiscal Year
Last Ten Fiscal Years
(accrual basis of accounting)
138
2010 2011 2012 2013 2014
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes 10,738,530$ 10,794,375$ 10,337,486$ 9,958,198$ 9,498,277$
Transient occupancy taxes 1,108,785 1,221,491 970,275 1,289,007 1,509,095
Sales tax 4,680,846 4,160,359 4,930,037 5,408,756 4,742,859
Franchise taxes 941,785 1,030,736 1,008,031 1,126,398 1,324,860
Utility users taxes 5,056,233 5,310,666 5,484,256 4,732,597 4,644,218
Other taxes 151,724 228,449 338,176 328,743 555,804
Motor vehicle in lieu, unrestricted 76,234 119,022 12,868 13,333 11,035
Use of money and property 752,771 735,082 714,342 372,693 674,875
Other 319,134 312,316 230,997 331,175 544,406
Transfers 60,375 - - - 378,500
Extraordinary Gain(loss) - - (3,531,584) - -
Total governmental activities 23,886,417 23,912,496 20,494,884 23,560,900 23,883,929
Business-type activities:
Use of money and property 92,259 109,160 96,774 84,371 133,995
Other 12,645 5,469 4,112 5,060 805
Transfers (60,375) - - - (378,500)
Extraordinary Gain(loss) - - (1,200,000) - 1,200,000
Total business-type activities 44,529 114,629 (1,099,114) 89,431 956,300
Total primary government 23,930,946 24,027,125 19,395,770 23,650,331 24,840,229
Changes in net position:
Governmental activities (21,369) 4,710 2,276,108 4,267,078 1,705,538
Business-type activities 1,029,839 1,099,939 152,576 1,900,423 2,653,047
Total primary government 1,008,470$ 1,104,649$ 2,428,684$ 6,167,501$ 4,358,585$
Source: Finance Department, City of Seal Beach.
City of Seal Beach
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
139
2015 2016 2017 2018 2019
Expenses:
Governmental activities:
General government 6,551,584$ 6,264,368$ 5,894,947$ 6,161,230$ 6,479,347$
Public safety 16,022,465 16,972,880 19,867,060 19,877,068 21,497,362
Community development 1,393,712 1,100,110 1,218,902 1,593,008 1,499,652
Community services 1,129,300 1,036,627 995,468 964,634 945,425
Public works 7,862,892 6,956,443 6,992,604 7,367,882 7,752,351
Interest on long-term debt 444,132 349,652 342,951 225,675 143,040
Total governmental activities expenses 33,404,085 32,680,080 35,311,932 36,189,497 38,317,177
Business-type activities:
Water utility 4,037,798 4,102,228 4,977,160 4,668,618 4,909,193
Sewer utility 1,661,225 1,676,651 2,639,043 2,539,783 2,523,366
Total business-type activities expenses 5,699,023 5,778,879 7,616,203 7,208,401 7,432,559
Total primary government expenses 39,103,108 38,458,959 42,928,135 43,397,898 45,749,736
Program revenues:
Governmental activities:
Charges for services:
General government 1,820,019 2,074,448 1,913,909 2,062,987 1,913,201
Public safety 2,132,176 1,521,220 2,045,589 1,903,530 1,907,577
Community development 186,858 192,878 217,486 300,640 597,318
Community services 1,020,316 1,015,517 707,813 733,456 840,428
Public works 1,937,305 1,832,289 2,105,747 2,398,039 2,556,857
Operating contributions and grants 2,768,435 2,122,139 1,721,167 2,334,480 2,588,454
Capital grants and contributions 20,000 10,000 174,685 79,175 9,777,900
Total governmental activities
program revenues 9,885,109 8,768,491 8,886,396 9,812,307 20,181,735
Business-type activities:
Charges for services:
Water utility 4,556,001 4,261,566 4,782,468 5,097,807 4,851,274
Sewer utility 2,765,357 2,466,869 2,784,942 2,928,885 2,854,208
Total business-type activities
program revenues 7,321,358 6,728,435 7,567,410 8,026,692 7,705,482
Total primary government
program revenues 17,206,467 15,496,926 16,453,806 17,838,999 27,887,217
Net revenues (expenses):
Governmental activities (23,518,976) (23,911,589) (26,425,536) (26,377,190) (18,135,442)
Business-type activities 1,622,335 949,556 (48,793) 818,291 272,923
Total net revenues (expenses)(21,896,641)$ (22,962,033)$ (26,474,329)$ (25,558,899)$ (17,862,519)$
Source: Finance Department, City of Seal Beach.
City of Seal Beach
Changes in Net Position (Continued)
Fiscal Year
Last Ten Fiscal Years
(accrual basis of accounting)
140
2015 2016 2017 2018 2019
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes 10,050,815$ 10,408,505$ 11,012,246$ 11,180,197$ 11,481,535$
Transient occupancy taxes 1,525,723 1,655,376 1,693,515 1,666,996 1,631,445
Sales tax 4,246,080 4,228,730 4,379,341 4,303,618 5,546,264
Franchise taxes 1,163,595 955,922 1,016,938 1,059,581 1,097,774
Utility users taxes 4,646,434 4,445,180 4,177,713 4,186,554 4,061,031
Other taxes 344,789 197,166 190,510 163,277 227,978
Motor vehicle in lieu, unrestricted 10,659 9,960 11,235 13,102 12,473
Use of money and property 725,720 1,004,572 425,014 300,817 1,692,720
Other 356,749 536,175 214,219 1,762,390 2,065,583
Transfers 378,500 378,500 378,500 378,500 378,500
Extraordinary Gain(loss) 694,585 - - - -
Total governmental activities 24,143,649 23,820,086 23,499,231 25,015,032 28,195,303
Business-type activities:
Use of money and property 109,575 176,437 167,661 223,778 326,036
Other 3,698 20,107 - - -
Transfers (378,500) (378,500) (378,500) (378,500) (378,500)
Extraordinary Gain(loss) - - - - -
Total business-type activities (265,227) (181,956) (210,839) (154,722) (52,464)
Total primary government 23,878,422 23,638,130 23,288,392 24,860,310 28,142,839
Changes in net position:
Governmental activities 624,673 (91,503) 23,499,231 25,015,032 10,059,861
Business-type activities 1,357,108 767,600 (210,839) (154,722) 220,459
Total primary government 1,981,781$ 676,097$ 23,288,392$ 24,860,310$ 10,280,320$
Source: Finance Department, City of Seal Beach.
City of Seal Beach
(accrual basis of accounting)
Fiscal Year
Changes in Net Position (Continued)
Last Ten Fiscal Years
141
2010 2011(1)2012 2013 2014
General fund:
Reserved 30,300$ -$ -$ -$ -$
Unreserved 29,988,551 - - - -
Total general fund 30,018,851$ -$ -$ -$ -$
All other governmental funds:
Reserved 1,880,130$ -$ -$ -$ -$
Unreserved, reported in:
Low and moderate housing 1,268,309 - - - -
Special revenue funds 2,264,014 - - - -
Debt service funds 1,922,685 - - - -
Capital project funds 4,126,432 - - - -
Total all other governmental funds 11,461,570$ -$ -$ -$ -$
General Fund:
Nonspendable -$ 100$ -$ -$ 1,549,735$
Restricted - - - - -
Assigned - 9,371,679 9,106,458 8,301,699 8,227,258
Unassigned - 16,952,806 19,263,118 21,149,350 22,314,838
Total general fund -$ 26,324,585$ 28,369,576$ 29,451,049$ 32,091,831$
All Other government funds:
Nonspendable -$ 1,957,603$ -$ -$ -$
Restricted - 5,179,337 2,662,285 3,271,671 4,426,990
Assigned - 2,825,953 87,375 89,004 71,993
Unassigned - (134,079) (470,485) (56,810) (368,629)
Total all Other government funds:-$ 9,828,814$ 2,279,175$ 3,303,865$ 4,130,354$
Source: Finance Department, City of Seal Beach
(1) Fund balances classification was changed in fiscal year 2011 due to implementation of GASB 54.
Fiscal Year
Last Ten Fiscal Years
(modified accrual basis of accounting)
City of Seal Beach
Fund Balances of Governmental Funds
142
2015 2016 2017 2018 2019
General fund:
Reserved -$ -$ -$ -$ -$
Unreserved - - - - -
Total general fund -$ -$ -$ -$ -$
All other governmental funds:
Reserved -$ -$ -$ -$ -$
Unreserved, reported in:
Low and moderate housing - - - - -
Special revenue funds - - - - -
Debt service funds - - - - -
Capital project funds - - - - -
Total all other governmental funds -$ -$ -$ -$ -$
General Fund:
Nonspendable 666,102$ 682,859$ 2,877$ 32,495$ 33,795$
Restricted - - 12,277 5,266 5,419
Assigned 7,623,994 7,610,286 7,478,281 8,289,150 10,152,504
Unassigned 21,711,517 20,811,037 19,770,202 17,491,623 11,922,370
Total general fund 30,001,613$ 29,104,182$ 27,263,637$ 25,818,534$ 22,114,088$
All Other government funds:
Nonspendable -$ -$ -$ -$ -$
Restricted 3,842,792 3,866,679 4,131,203 4,110,558 4,819,993
Assigned - - - - -
Unassigned (525,408) (51,254) (184,908) (34,159) (425,639)
Total all Other government funds:3,317,384$ 3,815,425$ 3,946,295$ 4,076,399$ 4,394,354$
Source: Finance Department, City of Seal Beach
Fiscal Year
City of Seal Beach
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
143
2010 2011 2012 2013 2014
Revenues:
Taxes 22,689,660$ 23,624,925$ 24,165,883$ 23,831,431$ 23,476,034$
Licenses and permits 1,586,337 1,179,759 926,761 1,247,750 1,369,275
Intergovernmental 1,644,511 949,294 5,058,175 3,002,321 869,294
Charges for services 4,150,239 3,769,165 4,044,566 4,117,034 3,895,371
Use of money and property 626,019 735,082 714,342 372,693 674,875
Fines and forfeitures 1,029,510 983,702 1,085,291 1,063,172 1,013,695
Contributions from other governments - - - 10,209 341,698
Miscellaneous 337,986 312,316 234,597 301,771 579,125
Total revenues 32,064,262 31,554,243 36,229,615 33,946,381 32,219,367
Expenditures
Current:
General government 6,280,260 7,211,870 5,169,799 5,062,467 4,493,594
Public safety 13,377,245 13,297,057 13,948,663 14,460,833 15,439,757
Community development 3,346,961 1,649,921 1,353,068 1,420,065 1,298,071
Community services 1,036,376 965,222 880,983 1,182,716 1,048,427
Public works 2,817,379 4,059,001 4,047,013 4,156,616 4,871,887
Capital outlay 9,438,315 6,622,692 5,530,575 3,316,684 2,094,120
Debt service:
Principal retirement 1,942,476 2,066,373 2,195,014 1,734,446 1,265,135
Interest and fiscal charges 903,286 1,027,743 790,581 562,184 492,935
Bond issuance costs - - - - -
Total expenditures 39,142,298 36,899,879 33,915,696 31,896,011 31,003,926
Excess (deficiency) of revenue over
(under) expenditures (7,078,036) (5,345,636) 2,313,919 2,050,370 1,215,441
Other financing sources (uses):
Transfers in 12,577,549 9,370,333 8,209,025 5,825,432 4,363,955
Transfers out (12,780,799) (9,370,333) (8,209,025) (6,135,432) (4,295,455)
Debt issuance - - - - 1,546,931
Proceeds on sale of assets - 18,614 - - -
Total other financing sources (uses)(203,250) 18,614 - (310,000) 1,615,431
Extraordinary gain/(loss) on dissolution
of redevelopment agency - - (7,818,567) - -
Net change in fund balances (7,281,286)$ (5,327,022)$ (5,504,648)$ 1,740,370$ 2,830,872$
Debt service as a percentage of
noncapital expenditures 9.6%10.2%10.5%8.0%6.1%
City of Seal Beach
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Source: Finance Department, City of Seal Beach
Fiscal Year
Note: On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment
agencies in the State of California. The Redevelopment Agency was dissolved on February 1, 2012.
144
2015 2016 2017 2018 2019
Revenues:
Taxes 23,114,876$ 22,828,144$ 23,368,371$ 24,021,668$ 25,903,080$
Licenses and permits 1,377,131 1,304,924 1,234,590 1,480,971 1,416,737
Intergovernmental 1,725,127 1,388,056 744,904 1,530,815 857,923
Charges for services 3,961,691 4,214,690 5,349,083 4,586,949 4,878,405
Use of money and property 725,720 1,004,572 426,418 347,117 1,772,775
Fines and forfeitures 1,146,509 1,110,606 152,845 1,089,515 946,048
Contributions from other governments 330,885 283,222 180,511 55,765 45,994
Miscellaneous 375,588 537,777 492,245 520,420 2,319,864
Total revenues 32,757,527 32,671,991 31,948,967 33,633,220 38,140,826
Expenditures
Current:
General government 5,462,668 5,351,130 5,673,309 5,757,859 6,169,490
Public safety 15,811,773 16,378,416 17,395,965 18,148,871 19,240,608
Community development 1,362,308 1,175,339 1,186,081 1,488,921 1,446,025
Community services 1,129,497 1,075,282 1,004,690 954,018 942,804
Public works 5,631,015 4,862,058 4,586,373 4,967,066 5,160,373
Capital outlay 4,578,308 2,645,823 1,506,476 2,567,080 7,378,774
Debt service:
Principal retirement 1,337,573 1,490,150 2,162,379 1,640,521 1,754,905
Interest and fiscal charges 441,040 355,819 353,322 231,779 152,863
Bond issuance costs - - - - -
35,754,182 33,334,017 33,868,595 35,756,115 42,245,842
Excess (deficiency) of revenue over
(under) expenditures (2,996,655) (662,026) (1,919,628) (2,122,895) (4,105,016)
Other financing sources (uses):
Transfers in 7,012,848 5,602,944 4,472,129 5,714,614 9,381,712
Transfers out (6,919,381) (5,340,308) (4,262,176) (4,906,717) (8,663,187)
Debt issuance - - - - -
Proceeds on sale of assets - - - - -
Total other financing sources (uses)93,467 262,636 209,953 807,897 718,525
Extraordinary gain/(loss) on dissolution
of redevelopment agency - - - - -
Net change in fund balances (2,903,188)$ (399,390)$ (1,709,675)$ (1,314,998)$ (3,386,491)$
Debt service as a percentage of
noncapital expenditures 5.7%6.0%7.8%5.6%5.5%
City of Seal Beach
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
145
Fiscal Year Taxable Taxable Total
Ended Assessed Assessed Direct Tax
June 30 Secured Unsecured Value Secured Unsecured Value Rate
2010 4,067,713,475$ 173,507,894$ 4,241,221,369$ 434,606,835$ 9,702,557$ 444,309,392$ 1.00%
2011 4,114,053,573 167,978,268 4,282,031,841 408,349,567 10,330,287 418,679,854 1.00%
2012 4,219,133,372 215,211,254 4,434,344,626 410,499,845 6,813,130 417,312,975 1.00%
2013 4,304,310,243 176,246,398 4,480,556,641 424,660,008 7,294,003 431,954,011 1.00%
2014 4,408,299,607 172,172,784 4,580,472,391 453,448,325 8,270,821 461,719,146 1.00%
2015 4,706,609,532 184,449,987 4,891,059,519 556,548,983 3,863,246 560,412,229 1.00%
2016 4,794,299,125 287,392,225 5,081,691,350 530,597,248 32,693,247 563,290,495 1.00%
2017 4,978,010,106 189,618,406 5,167,628,512 300,533,393 2,090,757 302,624,150 1.00%
2018 5,233,421,188 194,765,328 5,428,186,516 309,374,617 2,150,646 311,525,263 1.00%
2019 5,475,549,249 150,370,464 5,625,919,713 320,174,015 2,103,366 322,277,381 1.00%
1 Beginning with the fiscal year ended June 30, 2003, exemptions are netted
directly against the individual property categories.
NOTE:
Source: County of Orange, Auditor - Controller Assessed Valuations Detail
In 1978 the voters of the State of California passed Proposition 13 which limited In 1978 the voters of the State of California passed Proposition 13
which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed
value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-
assessed at the time it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The
assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is
subject to the limitations described above.
City of Seal Beach
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
City Redevelopment Agency
146
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
City Direct Rates:
City Direct Rate 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Overlapping Rates:
Orange County Bonds 0.01673 0.01750 0.01754 0.01881 0.03015 0.03015 0.03092 0.03092 0.03116 0.03052
Metropolitan Water District 0.00430 0.03347 0.00370 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350
Other Districts 0.01995 0.00370 0.03603 0.04124 0.04830 0.04821 0.05219 0.05219 0.04833 0.04921
Total Direct Rate 1.01902 1.04098 1.05467 1.05727 1.06355 1.08195 1.08661 1.08661 1.08299 1.08323
Source: County of Orange, Auditor-Controller's Office
Fiscal Year
City of Seal Beach
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing
agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage
of assessed property values for the payment of the School District bonds.
147
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Seal Beach Mutual 976,822,867$ 17.36%633,332,885$ 14.93%
Orange County Transportation - -119,646,000 2.82%
CPT Shops at Rossmoor LLC 126,818,609 2.25%- -
ASN Long Beach LLC 122,091,426 2.17% - -
Boeing North American 112,360,366 2.00% 110,954,154 2.62%
Terra Funding-Bixby Ranch LLC 92,300,187 1.64% - -
ASN Long Beach LLC - - 83,801,519 1.98%
Rossmoor Shops LLC - - 74,251,411 1.75%
Al United States Seal Beach Senior Housing 50,772,550 0.90% 45,664,787 1.08%
Ranch Town Center LLC 42,111,076 0.75% 42,564,959 1.00%
OXY Long Beach Inc 41,002,208 0.73% 64,379,913 1.52%
Hellman Properties - - 38,460,053 0.91%
Columbia Regency Retail Partners LLC 28,225,602 0.50% - -
Old Ranch Country Club LLC 22,934,473 0.41% 25,386,737 0.60%
1,615,439,364$ 28.71% 1,238,442,418$ 29.21%
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HDL Coren & Cone
City of Seal Beach
Current Year and Nine Years Ago
Principal Property Taxpayers
2019 2010
148
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2010 8,362,560$ 7,314,382$ 87.47%257,026$ 7,571,408$ 90.54%
2011 8,385,415 8,190,860 97.68%178,283 8,369,142 99.81%
2012 8,608,773 8,404,621 97.63%125,019 8,529,640 99.08%
2013 8,814,252 8,629,271 97.90%118,645 8,747,916 99.25%
2014 9,407,263 9,240,201 98.22%103,007 9,343,208 99.32%
2015 10,438,079 10,222,017 97.93%73,362 10,295,379 98.63%
2016 10,472,603 10,196,356 97.36%81,860 10,278,216 98.14%
2017 10,945,834 10,710,665 97.85%65,706 10,776,371 98.45%
2018 11,415,167 11,226,591 98.35%66,149 11,292,740 98.93%
2019 12,131,891 11,590,056 95.53%60,234 11,650,289 96.03%
Source: Orange County Tax Ledger
Total Collections to Date
Collected within the
Fiscal Year of Levy
Property Tax Levies and Collections
City of Seal Beach
Last Ten Fiscal Years
NOTE:
The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by
the City and Redevelopment Agency that were passed-through to other agencies. On December 29, 2011, the California Supreme Court upheld
Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was
dissolved on February 1, 2012.
149
Fiscal Year Countrywide Tax Pension Fire Total
Ended Capital Financing Allocation Obligation Station Governmental
June 30 Lease Authority Lease Bonds Bonds Bonds Climatec Activities
2010 433,968$ 230,000$ 6,005,000$ 9,307,000$ 5,775,000$ -$ 21,750,968$
2011 323,595 120,000 5,575,000 8,311,000 5,355,000 - 19,684,595
2012 202,581 - - 7,227,000 4,935,000 - 12,364,581
2013 70,135 - - 6,045,000 4,515,000 - 10,630,135
2014 - - - 5,270,000 4,095,000 1,562,400 10,927,400
2015 - - - 4,411,000 3,675,000 1,488,358 9,574,358
2016 - - - 3,461,000 3,255,000 1,368,208 8,084,208
2017 - - - 2,414,000 2,835,000 672,829 5,921,829
2018 - - - 1,263,000 2,415,000 603,308 4,281,308
2019 - - - - 1,995,000 531,403 2,526,403
Notes:
1See the schedule of Demographic and Economic Statistics on page 155 for personal income and
population data.
*Data not readily available.
Source: Finance Department, City of Seal Beach
Details regarding the City's outstanding debt can be found in the notes to the financial statements Details regarding the City's outstanding debt can
be found in the notes to the financial statements. In addition on December 29,2011, the California Supreme Court upheld Assembly Bill 1X26 that
provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1,
2012. The debt was transferred to the Successor Agency to the Seal Beach Redevelopment Agency.
Governmental Activities
City of Seal Beach
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
150
Economic
Fiscal Year Development Sewer Sewer 2011 Sewer Total Total Percentage Debt
Ended Administration Certificates of Installment State Revolving Business-type Primary of Personal Per
June 30 Loan Participation Agreement Agreement Activities Government Income 1 Capita 1
2010 111,016$ 3,460,000$ -$ -$ 3,571,016$ 25,321,984$ * 974
2011 99,521 - 3,200,000 - 3,299,521 24,184,116 * 930
2012 87,453 - 3,085,000 - 3,172,453 16,737,034 * 687
2013 74,780 - 2,965,000 4,645,401 7,685,181 19,515,316 * 750
2014 - - 2,835,000 4,068,778 6,903,778 19,031,178 * 732
2015 - - 2,705,000 3,893,311 6,598,311 17,125,013 * 697
2016 - - 2,565,000 3,718,034 6,283,034 15,081,352 * 613
2017 - - 2,420,000 3,538,201 5,958,201 5,958,201 * 483
2018 - - 2,270,000 3,353,690 5,623,690 9,904,998 * 398
2019 - - 2,110,000 3,164,384 5,274,384 7,800,787 * 313
Notes:
1See the schedule of Demographic and Economic Statistics on page 155 for personal income and
population data.
*Data not readily available.
Source: Finance Department, City of Seal Beach
Details regarding the City's outstanding debt can be found in the notes to the financial statements Details regarding the City's outstanding debt can
be found in the notes to the financial statements. In addition on December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that
provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1,
2012. The debt was transferred to the Successor Agency to the Seal Beach Redevelopment Agency.
Business-Type Activities
City of Seal Beach
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
151
Fiscal Year Private Percent of
Ended Placement Total Assessed Per
June 30 Bonds Bonds Bonds Value 1 Capita
2010 6,005,000$ 15,082,000$ 21,087,000$ 0.43% 811$
2011 5,575,000 13,666,000 19,241,000 0.38%790
2012 - 12,162,000 12,162,000 0.24%497
2013 - 10,560,000 10,560,000 0.21%406
2014 - 9,365,000 9,365,000 0.19%360
2015 - 8,086,000 8,086,000 0.15%329
2016 - 6,716,000 6,716,000 0.12%273
2017 - 4,507,180 5,249,000 0.10%213
2018 - 2,937,013 2,937,013 0.05%118
2019 - 1,995,000 1,995,000 0.03%80
1Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
Note:
Source: Finance Department, City of Seal Beach
City of Seal Beach
Last Ten Fiscal Years
Ratios of General Bonded Debt Outstanding
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies
in the State of California. The Redevelopment Agency was dissolved on February 1, 2012. The debt was transferred to the Successor Agency to the
Seal Beach Redevelopment Agency
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the
City has none).
152
2018-19 Assessed Valuation:$5,625,919,713
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:% Applicable (1)6/30/2019 Debt 6/30/19
Metropolitan Water District 0.193% 48,050,000$ 92,737$
Coast Community College District 2.875% 754,064,504 21,679,354
North Orange Jt. Community College District 1.195% 320,459,001 3,829,485
Garden Grove Unified School District 0.001% 396,190,160 3,962
Los Alamitos Unified School District School Facilities Imp District No.1 49.197% 153,270,227 75,404,354
Huntington Beach Union High School District 0.002% 180,274,998 3,605
Ocean View School District 0.007% 41,465,000 2,903
City of Seal Beach Community Facilities District No. 2002-1 100.000% 3,095,000 3,095,000
City of Seal Beach Community Facilities District No. 2005-1 100.000% 7,820,000 7,820,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 111,931,400$
OVERLAPPING GENERAL FUND DEBT:
Orange County General Fund Obligations 0.950% 388,720,000$ 3,692,840$
Orange County Pension Obligations 0.950% 407,629,239 3,872,478
Orange County Board of Education Certificates of Participation 0.950% 13,490,000 128,155
North Orange County Regional Occupation Program Certificates of Participation 4.403% 9,290,000 409,039
Coast Community College District Certificates of Participation 2.875% 2,950,000 84,813
Los Alamitos Unified School District Certificates of Participation 54.284% 39,910,870 21,665,217
Other School District General Fund Obligations 0.0001-0.0003% 84,211,090 2,740
City of Seal Beach Fire Station Lease Revenue Bonds 100% 1,995,000 1,995,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 31,850,282$
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):100%1,290,000$ 1,290,000$
TOTAL DIRECT DEBT 1,995,000$
TOTAL OVERLAPPING DEBT 143,076,682$
COMBINED TOTAL DEBT 145,071,682$ (2)
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and
non-bonded capital lease obligations.
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.99%
Total Direct Debt ($3,378,000)0.04%
Combined Total Debt 2.58%
Total Overlapping Tax Increment Debt 0.40%
Source: California Municipal Statistics, Inc.
Ratios to Redevelopment Incremental Valuation ($320950178):
City of Seal Beach
Schedule of Direct and Overlapping Debt
June 30, 2019
153
2010 2011 2012 2013 2014
Debit limit 702,829,614$ 705,106,754$ 760,030,328$ 736,876,598$ 756,328,731$
Total net debt applicable to limit - - - - -
Legal debt margin 702,829,614$ 705,106,754$ 760,030,328$ 736,876,598$ 756,328,731$
Total debt applicable to the limit
as a percentage of debt limit 0.0%0.0%0.0%0.0%0.0%
Note: 1Under state finance law, the City of Seal Beach's outstanding general obligation debt should
not exceed 15 percent of total assessed property value. By law, the general obligation debt
subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.
Source: Orange County Tax Assessor's Office
Fiscal Year
City of Seal Beach
Legal Debt Margin Information
Last Ten Years
154
2015 2016 2017 2018 2019
Debit limit 817,720,762$ 846,747,277$ 820,537,899$ 860,757,686$ 892,030,484$
Total net debt applicable to limit - - - - -
Legal debt margin 817,720,762$ 846,747,277$ 820,537,899$ 860,757,686$ 892,030,484$
Total debt applicable to the limit
as a percentage of debt limit 0.0%0.0%0.0%0.0%0.0%
Legal Debt Margin Calculation for Fiscal Year 2019
Assessed Valuation 5,946,869,891$
Debt percentage 1 15%
Debt limit 892,030,484$
Debt applicable to limit -
Legal debt margin 892,030,484$
Note: 1Under state finance law, the City of Seal Beach's outstanding general obligation debt should
not exceed 15 percent of total assessed property value. By law, the general obligation debt
subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.
Source: Orange County Tax Assessor's Office
City of Seal Beach
Legal Debt Margin Information (Continued)
Last Ten Years
Fiscal Year
155
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
2010 1,768,919$ 405,000$ 318,054$ 2.45
2011 1,784,964 430,000 296,183 2.46
2012 1,034,695 450,000 396,408 1.22
2013 1,790,960 470,000 330,684 2.24
2014 1,222,425 495,000 229,406 1.69
2015 1,084,135 515,000 204,269 1.51
2016 1,329,344 545,000 177,413 1.84
2017 1,218,363 575,000 148,759 1.68
2018 1,125,053 600,000 118,302 1.57
2019 1,198,637 635,000 86,013 1.66
Source: Finance Department, City of Seal Beach
City of Seal Beach
Pledged-Revenue Coverage
Last Ten Fiscal Years
Debt Service
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
2000 Tax Allocation Refunding Bonds
156
Personal Per Capita
Calendar Income Personal Unemployment
Year Population (in thousands)Income Rate
2009 25,881 1,194,776 46,164 6.6%
2010 26,010 1,045,654 40,202 7.1%
2011 24,354 1,035,313 42,511 6.4%
2012 24,487 1,065,674 43,520 4.1%
2013 24,591 1,082,963 44,039 3.7%
2014 24,586 1,074,777 43,715 4.8%
2015 25,078 1,141,053 45,500 3.9%
2016 24,890 1,164,182 46,773 3.5%
2017 25,984 1,199,969 46,181 3.2%
2018 25,073 1,277,436 50,948 3.3%
Sources: HDL Coren & Cone
City of Seal Beach
Demographic and Economic Statistics
Last Ten Calendar Years
157
Business
Business Name 2018-19 2008-09 Category
76 X X Service Stations
AT&T Mobility X Electronics/Appliance Store
Bed Bath & Beyond X X Home Furnishings
California Pizza Kitchen X Casual Dining
Chevron X X Service Stations
Chevron & Auto Repair X X Service Stations
Chick Fil A X Quick-Service Restaurants
Circuit City X Electronics/Appliance Store
CVS Pharmacy X X Drug Stores
Energy Tubulars X X Petroleum Prod/Equip
Hangout X Casual Dining
Home Goods X X Home Furnishings
In N Out Burgers X Quick-Service Restaurants
Islands X Casual Dining
Kohls X X Department Stores
Leisure World Automotive 76 X Service Stations
Mahe X Casual Dining
Marshalls X Family Apparel
Mobil X X Service Stations
Old Ranch Country Club X X Leisure/Entertainment
Original Parts Group X X Automotive Supply Stores
Pavillions X Grocery Stores Liquor
Petsmart X Specialty Stores
Pinnacle Petroleum X Petroleum Prod/Equip
Ralphs X X Grocery Stores Liquor
Roger Dunn Golf Shop X X Sporting Goods/Bike Stores
Seal Beach Chevron X Service Stations
Seal Beach Chevron X Service Stations
Smog Pros X Service Stations
Spaghettini X X Fine Dining
Sprouts Farmers Market X Grocery Stores Beer/Wine
Target X X Discount Dept Stores
Ulta Beauty X Specialty Stores
Walts Wharf X X Fine Dining
2018-19 Percent of Fiscal Year Total Paid by Top 25 Accounts = 58.39%
2008-09 Percent of Fiscal Year Total Paid by Top 25 Accounts = 78.62%
Firms Listed Alphabetically: Period April Thru March
Source: Hinderliter, de Llamas & Associates, State Board of Equalization
City of Seal Beach
Current Year and Ten Years Ago
Top 25 Sales Tax Producers
158
Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General government 14.52 14.52 13.83 10.97 10.56 14.64 14.34 15.92 13.00 13.48
Public safety 65.88 65.88 64.77 63.91 76.78 79.13 74.12 77.19 78.50 79.82
Public works 15.40 15.40 8.36 11.49 11.03 10.94 4.97 3.98 6.00 5.00
Community
development 10.18 10.18 8.80 10.60 12.01 18.16 17.25 16.53 13.60 14.76
Water 12.55 12.68 12.48 12.29 12.60 13.80 13.82 12.60 12.90 13.15
Sewer 3.42 3.75 3.95 3.95 5.28 5.91 7.11 7.69 6.71 6.89
Total 121.95 122.41 112.19 113.21 128.26 142.58 131.61 133.91 130.71 133.10
Source: Finance Department, City of Seal Beach
Employees as of June 30,
City of Seal Beach
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
Full-Time and Part-Time
159
2010 2011 2012 2013 2014
Police:
Arrests 1,151 834 705 819 758
Parking citations issued 18,824 17,377 18,528 18,451 18,931
Public works:
Street centerline miles resurfaced 4 3 2 2 1
Number of public right of way permits issued 420 141 127 96 140
Number of street related service requests 25 124 121 134 35
Parks and recreation:
Number of recreation classes 799 457 456 2,156 678
Number of facility rentals 402 308 562 3,182 1,763
Water:
Number of water meters replaced 148 158 112 128 85
Acre feet of water used 3,680 3,498 3,534 3,818 3,878
Sewer:
Number of feet of sewer cleaned 239,209 184,047 203,584 245,986 253,099
Number of catch basins cleaned 388 350 417 417 401
Source: City of Seal Beach
Fiscal Year
City of Seal Beach
Operating Indicators by Function
Last Ten Fiscal Years
160
2015 2016 2017 2018 2019
Police:
Arrests 798 790 781 854 787
Parking citations issued 21,043 19,264 18,319 19,929 17,663
Public works:
Street centerline miles resurfaced 2 1 - 1 1
Number of public right of way permits issued 151 184 259 231 253
Number of street related service requests 45 40 68 109 92
Parks and recreation:
Number of recreation classes 781 680 710 1,070 1,100
Number of facility rentals 2,633 557 585 1,030 1,045
Water:
Number of water meters replaced 57 76 56 49 49
Acre feet of water used 3,540 3,208 3,259 3,208 3,360
Sewer:
Number of feet of sewer cleaned 253,099 217,619 - 217,619 154,000
Number of catch basins cleaned 434 458 216 216 216
Source: City of Seal Beach
Last Ten Fiscal Years
Fiscal Year
City of Seal Beach
Operating Indicators by Function (Continued)
161
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Police:
Stations 2222222222
Patrol units 36 36 34 34 34 34 34 34 34 34
Public works:
Streets (center line miles) 43 43 43 43 43 43 43 43 43 43
Sidewalk (miles) 86 86 86 86 86 86 86 86 86 86
Signalized intersections 23 23 23 23 23 23 23 23 23 23
Parks and recreation:
Parks 10 10 10 10 10 10 10 10 10 10
Community centers 3333333333
Water:
Water pipe (miles) 72 72 72 72 72 72 72 72 72 72
Reservoirs 2222222222
Sewer
Sanitary sewers (miles)37 37 37 37 37 37 37 37 37 37
Storm sewers (miles)4444444444
Sewer lift/pump stations 7777777777
Source: City of Seal Beach
City of Seal Beach
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
162
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Seal Beach, California (the “City”) as of and
for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements, and have issued our report thereon dated December 16, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of
the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
200 E. Sandpointe Avenue, Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850 • www.pungroup.com
3939352 Pun & McGeady_L_final.pdf 1 1/14/14 3:48 PM
To the Honorable Mayor and Members of the City Council
of the City of Seal Beach
Seal Beach, California
Page 2
164
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Santa Ana, California
December 16, 2019
City of Seal Beach
Seal Beach, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applying to
Appropriations Limit Schedule
For the Year Ending June 30, 2019
INDEPENDENT ACCOUNTANTS’ REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Seal Beach
Seal Beach, California
We have performed the procedures enumerated below, which were agreed to by the City of Seal Beach, California
(the “City”) and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures
Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) on assisting
you in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution for the year ending
June 30, 2019. The City’s management is responsible for the Appropriations Limit Schedule. The sufficiency of
these procedures is solely the responsibility of the City. Consequently, we make no representation regarding the
sufficiency of the procedures described below either for the purpose for which this report has been requested or any
other purpose.
The procedures performed and associated findings are as follows:
1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year
ending June 30, 2019, and verified that the limit and annual calculation factors were adopted by resolution
of the City Council. We also verified that the population and inflation options were selected by a recorded
vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total
adjustments, and verified the resulting amount to the current year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3. We verified the current year information presented in the accompanying Appropriations Limit Schedule to
corresponding information in worksheets used by the City.
Finding: No exceptions were noted as a result of our procedures.
4. We verified the appropriations limit presented in the accompanying Appropriations Limit Schedule to the
appropriations limit adopted by the City Council.
Finding: No exceptions were noted as a result of our procedures.
200 E. Sandpointe Avenue, Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850 • www.pungroup.com
3939352 Pun & McGeady_L_final.pdf 1 1/14/14 3:48 PM
To the Honorable Mayor and Members of City Council
of the City of Seal Beach
Seal Beach, California
Page 2
2
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by
the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an
examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on
assisting you in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other
matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the City Council and management of the City and is
not intended to be and should not be used by anyone other than these specified parties.
Santa Ana, California
March 5, 2019
City of Seal Beach
Appropriations Limit Schedule
For the Year Ending June 30, 2019
3
Amount Source
A. Appropriations Limit FY 2017-2018 29,177,939$ Prior year appropriation
limit adopted by the City
B. Calculation Factors:
1) Population increase % 0.9989 California Department of Finance
2) Inflation increase % 1.0367 California Department of Finance
3) Total adjustment % 1.0356 (B1 x B2)
C. Annual Adjustment Increase 1,037,557 {(B3-1) x A}
D. Other Adjustments:
1) Loss responsibility (-) - N/A
2) Transfer to private (-) - N/A
3) Transfer to fees (-) - N/A
E. Total Adjustments 1,037,557 (C + D)
F. Appropriations Limit FY 2018-2019 30,215,496$ (A + E)
See Accompanying Notes to Appropriations Limit Schedule.
City of Seal Beach
Notes to Appropriations Limit Schedule
For the Year Ending June 30, 2019
4
Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California
governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective
for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the
appropriations limit is subject to a limited procedures review in connection with the annual audit.
Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is
required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population
factors discussed in Notes 3 and 4 below.
Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the
jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is
located. The factor adopted by the City for the year ending June 30, 2019, represents the annual percentage
change in population for the City of Seal Beach.
Note 4 – Inflation factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th
quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the
percentage change in the local assessment roll from the preceding year due to the change of local nonresidential
construction. The factor adopted by the City for the year ending June 30, 2019, represents the annual percentage
change in per capital personal income.
Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such
as the transfer of responsibility for municipal services to, or from, another government agency or private entity.
The City had no such adjustments for the year ending June 30, 2019.
Agenda Item E
AGENDA STAFF REPORT
DATE:February 24, 2020
TO:Honorable Mayor and City Council
THRU:Jill R. Ingram, City Manager
FROM:Steve Myrter, P.E., Director of Public Works
SUBJECT:FY 2019-2020 Annual Slurry Seal Program – Award
Construction Contract, CIP ST2001
________________________________________________________________
SUMMARY OF REQUEST:
That the City Council adopt Resolution 7005:
1. Approving plans and specifications for the Fiscal Year 2019-2020 Annual
Slurry Seal Program, CIP ST2001; and,
2. Awarding and authorizing the City Manager to execute a construction
contract to Doug Martin Contracting Company, Inc., in the amount of
$156,057, and waive minor bid irregularities; and,
3. Authorizing the City Manager to approve contract changes in a not-to-
exceed amount of $15,605; and,
4. Authorizing the City Manager to approve payments for inspection and
testing services in a not-to-exceed amount of $15,000.
BACKGROUND AND ANALYSIS:
The City’s annual slurry seal program is budgeted in the Fiscal Year 2019-2020
Capital Improvement Program to improve roadway conditions within the City. The
work required primarily consists of applying a slurry seal coating on the existing
asphalt roadway to extend its serviceable life. The selected streets were identified
in the 2018 Pavement Management Program. The streets include:
1. Almond Avenue – Rose Circle to Oleander Street
2. Birchwood Avenue – Marigold Street to Daisy Street
3. Camelia Street – Almond Avenue to Banyan Avenue
4. Candleberry Avenue – Lampson Avenue to Marigold Street
5. Clover Circle – Almond Avenue to Cul-de-sac
6. Columbine Street – Almond Avenue to Banyan Avenue
6
8
4
7. Dahlia Circle – Almond Avenue to Cul-de-sac
8. Elder Avenue – Fuchsia Street to Oleander Street
9. Fir Avenue – Goldenrod Street to Ironwood Avenue
10. Fir Avenue – Wisteria Street to Sunflower Street
11. Fir Circle - Fir Avenue to Cul-de-sac
12. Fuchsia Circle – Fir Avenue to Cul-de-sac
13. Fuchsia Street – Birchwood Avenue to Elder Avenue
14. Goldenrod Circle – Almond Avenue to Cul-de sac
15. Goldenrod Street – Elder Avenue Cul-de-sac
16. Guava Avenue – Ironwood Avenue to Cul-de-sac
17. Hazelnut Avenue – Heather Street to Rose Street
18. Heather Circle – Almond Avenue to Cul-de-sac
19. Heather Street – Hazelnut Avenue to Lampson Avenue
20. Jasmine Circle – Almond Avenue to Cul-de-sac
21. Stanford Lane – College Park Drive to College Park Drive
22. Tulip Street – Ironwood Avenue to Lampson Avenue
23. Wisteria Street – Dogwood Avenue to Cul-de-sac
On January 28, 2020, the City Clerk’s office received five (5) bids with the following
results:
Rank Contractor Total Base Bid
Low Doug Martin Contracting Co., Inc.$ 156,057.00
2 All American Asphalt $ 189,021.43
3 American Asphalt South, Inc.$ 202,925.00
4 Pavement Coating Co.$ 220,100.00
5 Roy Allan Slurry Seal, Inc.$ 229,212.00*
*as-read amount: $233,640.00
The bid consisted of two components – (1) Base Bid, which specifies the use of
conventional slurry, and (2) Alternate Bid, which substitutes the conventional slurry
with rubberized emulsion aggregate slurry (REAS). The lowest bidder, Doug Martin
Contracting Company, Inc. (Doug Martin), did not submit an Alternate Bid given
the inability to secure the REAS material. As staff finds that the Alternate Bid is
undesirable for this specific project, the Base Bid was stipulated between all
bidders as the basis of award, and the irregularity did not affect the amount of the
Base Bid or give Doug Martin an advantage or benefit not allowed the other
bidders, it is recommended that Council waive the minor irregularity of Doug
Martin’s bid proposal.
Based upon the references, qualifications, work experience, and cost, staff
recommends selecting Doug Martin as the lowest responsive bidder at $156,057.
The project plans are available in the City Engineer’s office.
Construction is estimated to start in spring 2020, and is estimated to be completed
within 25 working days following the Notice to Proceed.
6
8
4
ENVIRONMENTAL IMPACT:
This project complies with all requirements of the California Environmental Quality
Act (CEQA) and is categorically exempt under section 15301 (c) of the CEQA
Guidelines.
LEGAL ANALYSIS:
The City Attorney has reviewed the agreement and approved the resolution as to
form.
FINANCIAL IMPACT:
Sufficient funds have been allocated in the approved Fiscal Year 2019-2020
Capital Improvement Program Budget for the Project.
The table below presents the estimated breakdown of the Project’s construction
cost:
Description Amount
Construction $ 156,057
Contingency $ 15,605
Inspection/Testing $ 15,000
Total $ 186,662
Any unspent funds will be returned back to the original funding source.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
MEASURE BB:
This item is not applicable to Measure BB, the Seal Beach Neighborhood and
Essential Services Protection Measure.
RECOMMENDATION:
That the City Council adopt Resolution 7005:
1. Approving plans and specifications for the Fiscal Year 2019-2020 Annual
Slurry Seal Program, CIP ST2001; and,
6
8
4
2. Awarding and authorizing the City Manager to execute a construction
contract to Doug Martin Contracting Company, Inc., in the amount of
$156,057, and waive minor bid irregularities; and,
3. Authorizing the City Manager to approve contract changes in a not-to-
exceed amount of $15,605; and,
4. Authorizing the City Manager to approve payments for inspection and
testing services in a not-to-exceed amount of $15,000.
SUBMITTED BY: NOTED AND APPROVED:
Steve Myrter Jill R. Ingram
Steve Myrter, P.E., Director of Public Works Jill R. Ingram, City Manager
Prepared by: Iris Lee, Deputy Public Works Director/City Engineer
ATTACHMENTS:
A. Resolution 7005
B. Agreement
C. Doug Martin Contracting Company, Inc., letter dated February 2, 2020
RESOLUTION 7005
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AWARDING AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A CONSTRUCTION CONTRACT WITH DOUG
MARTIN CONTRACTING COMPANY, INC. FOR FISCAL YEAR
2019-2020 ANNUAL SLURRY SEAL PROGRAM, CIP ST2001
WHEREAS, On January 7, 2020, the City issued a solicitation for bids for the
Fiscal Year 2019-2020 Annual Slurry Seal Program, CIP ST2001 (the “Project”);
and,
WHEREAS, On January 28, 2020, the City Clerk’s office received five bids in
response to the solicitation for bids, and Doug Martin Contracting Company, Inc.,
submitted the lowest responsible bid in the amount of $156,057; and,
WHEREAS, Doug Martin Contracting Company, Inc. is a qualified firm to
perform the Project; and,
WHEREAS, the solicitation for bids included two components – (1) Base Bid,
which specifies the use of conventional slurry, and (2) Alternate Bid, which
substitutes the conventional slurry with rubberized emulsion aggregate slurry
(REAS). Doug Martin Contracting Company, Inc. did not submit an Alternate Bid
given the inability to secure the REAS material. The City Council finds that the
Alternate Bid is undesirable for this specific project, the Base Bid was stipulated
between all bidders as the basis of award, the irregularity did not affect the
amount of the Base Bid or give Doug Martin Contracting Company, Inc. an
advantage or benefit not allowed the other bidders, and therefore the City
Council waives this minor irregularity of Doug Martin Contracting Company’s bid
proposal.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH
DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby approves the plans and specifications for
the Project.
SECTION 2. The City Council hereby awards a contract to Doug Martin
Contracting Company, Inc. for the Project in the not-to-exceed
amount of $156,057, and based on the recitals set forth above
waives minor bid irregularities, and rejects all other bids.
SECTION 3. The City Council hereby authorizes and directs the City Manager to
execute the contract on behalf of the City.
SECTION 4. The City Council hereby authorizes the City Manager to approve
payments for additional work requests in connection with the
Project in the cumulative not-to-exceed amount of $15,605.
4
6
9
5
SECTION 5. The City Council hereby authorizes the City Manager to approve
payments for inspection and testing in connection with the Project
in the cumulative not-to-exceed amount of $15,000.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 24th day of February 2020 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7005 on file in the office of
the City Clerk, passed, approved, and adopted by the City Council at a regular
meeting held on the 24th day of February 2020.
Gloria D. Harper, City Clerk
PUBLIC WORKS AGREEMENT
FY19-20 ANNUAL SLURRY SEAL PROGRAM
PROJECT CIP NO. ST2001
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
&
Doug Martin Contracting Company, Inc.
220 Foundation Avenue
La Habra, CA 90631
(714) 441-0513
(714) 441-0541 - FAX
This Contract (“Contract”) is made as of February 24, 2020, by and between the City of
Seal Beach, a California charter city (“City”), and Doug Martin Contracting Company,
Inc., a California corporation (“Contractor”).
RECITALS
A. WHEREAS, the City Council has approved the plans and specifications for the
FY19-20 Annual Slurry Seal Program (“Project”) with respect to design criteria;
and
B. WHEREAS, Contractor has submitted a Bid to City for the Project dated January
28, 2020 in the amount of $156,057.00 (“Bid” hereinafter). The Bid is attached
hereto and contains, among other things, provisions defining the Project scope.
NOW, THEREFORE, in consideration of performance by the parties of the
mutual promises, covenants, and conditions herein contained, the parties hereto agree
as follows:
CONTRACT
1. Contractor’s Services.
1.1 Scope and Level of Services. For and in consideration of the
mutual promises set forth herein, and subject to the terms and conditions set forth in
this Contract, Contractor shall perform and complete in good and workmanlike manner
all work (“Work”) required by this Contract and the documents listed in Subsection 1.2
for the Project.
1.2 Contract Documents. The “Contract Documents” that comprise the
agreement between the City and the Contractor are the: Notice Inviting Sealed Bids,
Instructions to Bidders, Accepted Bid Proposal Form, Non-Collusion Declaration, Bid
Schedule(s), List of Subcontractors, Contractor’s Industrial Safety Record, Contractor’s
Qualification Statement, Bid Security Forms for Check or Bond, Specifications, General
and Special Provisions and documents referenced therein, all addenda as prepared
prior to the date of Bid opening setting forth any modifications or interpretations of any
of said documents, this Contract, Exhibits attached to this Contract, including but not
limited to the Performance Bond (Exhibit A), Payment Bond (Exhibit B), Workers’
Compensation Insurance Certificate (Exhibit C), Insurance Endorsements (Exhibit D),
Acknowledgment of Penal and Civil Penalties Concerning Contractor Licensing Laws
(Exhibit E), Labor Law Requirements (Exhibit F), Indemnification and Hold Harmless
Contract (Exhibit G), Accepted Bid Proposal Form and any and all supplemental
agreements executed amending or extending the Work contemplated and that may be
required to complete the Work in a substantial and acceptable manner. These Contract
Documents are hereby incorporated into this Contract.
1.3 The Work shall be performed in accordance with the Plans,
Specifications and other Contract Documents. Contractor shall furnish at its own
expense all labor, materials, equipment and services necessary therefor, except such
labor, materials, equipment and services as are specified in the Contract Documents to
be furnished by City.
1.4 In the event of any material discrepancy between the express
provisions of this Contract and the provisions of the other Contract Documents, the
provisions of this Contract shall prevail.
2. Effective Date. This Contract is effective as of February 24, 2020 (the
“Effective Date”), and shall remain in full force and effect until Contractor has rendered
the services required by this Contract.
3. Payment. For performing and completing the Work in accordance with the
Contract Documents, City shall pay Contractor, in full compensation therefor, the
amount of One Hundred Fifty Six Thousand Fifty Seven Dollars and 00/XX
($156,057.00), subject to any additions and deletions pursuant to the terms of the
Contract Documents. Said sum shall constitute payment in full for all Work performed
hereunder, including, without limitation, all labor, materials, equipment, tools and
services used or incorporated in the Work, supervision, administration, overhead,
expenses and any and all other things required, furnished or incurred for completion of
the Work as specified in the Contract Documents. City shall make payments to
Contractor on account of the Contract sum at the time, in the manner, and upon the
conditions specified in the Contract Documents. The City Manager may authorize extra
work to fund unforeseen conditions up to the amount approved at the time of award by
the City Council. Payment for additional work in excess of this amount requires prior
City Council authorization.
4. Contractor’s Personnel.
4.1 All Work shall be performed by Contractor or under Contractor’s
direct supervision, and all personnel shall possess the qualifications, permits, and
licenses required by state and local law and by the Notice Inviting Bids/Instructions to
Bidders to perform such Services, including, without limitation, a City of Seal Beach
business license as required by the Seal Beach Municipal Code.
4.2 Contractor shall be responsible for payment of all employees’
wages and benefits, and shall comply with all requirements pertaining to employer’s
liability, workers’ compensation, unemployment insurance, and Social Security.
Contractor shall fully comply with the workers’ compensation law regarding Contractor
and Contractor’s employees.
4.3 Contractor shall indemnify and hold harmless City and its elected
officials, officers, employees, servants, designated volunteers, and agents serving as
independent contractors in the role of City officials, from any and all liabilities, damages,
claims, costs and expenses of any nature to the extent arising from Contractor’s alleged
violations of personnel practices.
4.4 Contractor is, and shall at all times remain as to City, a wholly
independent contractor. Contractor shall have no power to incur any debt, obligation, or
liability on behalf of City or otherwise act as an agent of City. Neither City nor any of its
agents shall have control over the conduct of Contractor or any of Contractor’s
employees, except as set forth in this Contract. Contractor shall not, at any time, or in
any manner, represent that it or any of its officers, agents, or employees are in any
manner employees of City. Contractor shall pay all required taxes on amounts paid to
Contractor under this Contract, and indemnify and hold City harmless from any and all
taxes, assessments, penalties, and interest asserted against City by reason of the Work
performed pursuant to this Contract.
4.5 City shall have the right to offset against the amount of any fees
due to Contractor under this Contract any amount due to City from Contractor as a
result of Contractor’s failure to promptly pay to City any reimbursement or
indemnification arising under this Section 4.
5. Indemnification.
5.1 Contractor’s Duty. Contractor shall defend, indemnify, and hold the
City, its elected officials, officers, employees, volunteers, agents, and those City agents
serving as independent contractors in the role of City officials (collectively
“Indemnitees”) free and harmless from and against any and all claims (including, without
limitation, claims for bodily injury, death or damage to property), demands, obligations,
damages, actions, causes of action, suits, losses, bid protests, stop notices, judgments,
fines, penalties, liabilities, costs and expenses (including, without limitation, attorney’s
fees, disbursements and court costs) of every kind and nature whatsoever (individually,
a “Claim,” collectively, “Claims”), in any manner arising out of or incident to the
performance of the Contract, including without limitation, the payment of all
consequential damages and attorneys’ fees and other related costs and expenses.
Further, Contractor shall appoint competent defense counsel, at Contractor’s own cost,
expense and risk, to defend any and all such suits, actions or other legal proceedings of
every kind arising out of or incident to the performance of the Contract that may be
brought or instituted against Indemnitees. Contractor shall pay and satisfy any
judgment, award or decree that may be rendered against City or the other Indemnitees
in any such suit, action, or other legal proceeding arising out of or incident to the
performance of the Contract. Contractor shall reimburse the City and the other
Indemnitees, for any and all legal expenses and costs incurred by each of them in
connection therewith or in enforcing the indemnity herein provided. Contractor’s
obligation to indemnify shall not be restricted to insurance proceeds, if any, received by
Contractor or Indemnitees. This indemnity shall apply to all Claims and liability
regardless of whether any insurance policies are applicable.
5.2 Bid Protests. In addition to its obligations pursuant to Section 5.1,
Contractor shall reimburse the City for all attorneys’ fees and costs incurred by City in
connection with, arising out of or incident to any Bid protest.
5.3 Civil Code Exception. Nothing in this Section 5-3 shall be
construed to encompass Indemnitees’ sole negligence or willful misconduct to the
limited extent that the underlying Contract is subject to Civil Code Section 2782(a) or
the City’s active negligence to the limited extent that the underlying Contract Documents
are subject to Civil Code Section 2782(b), provided such sole negligence, willful
misconduct or active negligence is determined by agreement between the parties or by
the findings of a court of competent jurisdiction.
5.4 Nonwaiver of Rights. Indemnitees do not, and shall not, waive any
rights that they may possess against Contractor because of the acceptance by City, or
the deposit with City, of any insurance policy or certificate required pursuant to this
Contract.
5.5 Waiver of Right of Subrogation. Contractor, on behalf of itself and
all parties claiming under or through it, hereby waives all rights of subrogation against
the Indemnitees, while acting within the scope of their duties, from all claims, losses,
and liabilities arising out of or incident to activities or operations performed by or on
behalf of the Indemnitor.
5.6 Survival. The provisions of this Section 5 shall survive the
termination of the Contract and are in addition to any other rights or remedies that
Indemnitees may have under the law. Payment is not required as a condition precedent
to an Indemnitee’s right to recover under this indemnity provision, and an entry of
judgment against a Contractor shall be conclusive in favor of the Indemnitee’s right to
recover under this indemnity provision.
6. Insurance.
6.1 Liability Insurance. Contractor shall procure and maintain in full
force and effect for the duration of this Contract insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the
performance of the services hereunder by Contractor, and its agents, representatives,
employees and subcontractors. The policy limits set forth below do not act as a
limitation upon the amount of indemnification to be provided by Contractor. Contractor
shall complete and execute the following documents attached as Exhibits hereto and
incorporated herein by this reference:
6.1.1 Exhibit D-1: Additional Insured Endorsement -
Commercial General Liability.
6.1.2 Exhibit D-2: Additional Insured Endorsement -
Automobile Liability.
6.2 Minimum Scope of Insurance. Unless otherwise approved by City,
coverage shall be at least as broad as:
6.2.1 Insurance Services Office Commercial General Liability
coverage (occurrence form CG 0001).
6.2.2 Insurance Services Office form number CA 0001 (Ed.
1/87) covering Automobile Liability, code 1 (any auto).
6.2.3 Insurance Services Office form number CG 20 10 11 85
(Ed. 11/85) covering Additional Insured—Owners, Lessees or Contactors (Form B).
6.2.4 Workers’ Compensation insurance as required by the
State of California and Employer’s Liability Insurance.
6.2.5 Professional Liability insurance. Unless the City waives in
the requirement for professional liability insurance, Contractor shall provide to City the
standard form issued by the carrier.
6.3 Minimum Limits of Insurance. Contractor shall maintain limits no
less than:
6.3.1 General Liability: $2,000,000 per occurrence and in the
aggregate for bodily injury, personal injury and property damage. Commercial General
Liability Insurance or other form with a general aggregate limit shall apply separately to
this Contract or the general limit shall be twice the required occurrence limit.
6.3.2 Automobile Liability: $2,000,000 per occurrence for bodily
injury and property damage.
6.3.3 Employer’s Liability: $1,000,000 per occurrence and in
the aggregate for bodily injury or disease; and Workers’ Compensation Insurance in the
amount required by law.
6.4 Deductibles and Self-Insured Retentions. Contractor shall
inform City of any deductibles or self-insured retentions except with respect to any
professional liability insurance.
6.5 Other Insurance Provisions. The general liability and automobile
liability policies are to contain, or be endorsed to contain, the following provisions:
6.5.1 City, its officers, officials, employees, designated
volunteers and agents serving as independent contractors in the role of City officials,
are to be covered as additional insureds as respects: liability arising out of activities
performed by or on behalf of Contractor; products and completed operations of
Contractor; premises owned, occupied or used by Contractor; or automobiles owned,
leased, hired or borrowed by Contractor. The coverage shall contain no limitations on
the scope of protection afforded to City, its officers, officials, employees, designated
volunteers or agents serving as independent contractors in the role of City officials
which are not also limitations applicable to the named insured.
6.5.2 For any claims related to this Contract, Contractor’s
insurance coverage shall be primary insurance as respects City, its officers, officials,
employees, designated volunteers and agents serving as independent contractors in the
role of City officials. Any insurance or self-insurance maintained by City, their officers,
officials, employees, designated volunteers or agents serving as independent
contractors in the role of City officials shall be excess of Contractor’s insurance and
shall not contribute with it.
6.5.3 Contractor’s insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the limits
of the insurer’s liability.
6.5.4 Each insurance policy required by this Section 6 shall be
endorsed to state that coverage shall not be canceled or materially modified except
after 30 days prior written notice by first class mail has been given to City.
6.5.5 Each insurance policy, except for any professional
liability policy, required by this Section 6 shall expressly waive the insurer’s right of
subrogation against City and its elected officials, officers, employees, servants,
attorneys, designated volunteers, and agents serving as independent contractors in the
role of City or agency officials.
6.6 Acceptability of Insurers. Insurance is to be placed with insurers
with a current A.M. Best’s rating of no less than A:VIIl unless waived in writing by City’s
Risk Manager.
6.7 Verification of Coverage. All insurance coverages shall be
confirmed by execution of endorsements on forms approved by the City. The
endorsements are to be signed by a person authorized by that insurer to bind coverage
on its behalf. All endorsements are to be received and approved by City before
services commence. As an alternative to City forms, Contractor’s insurer may provide
complete, certified copies of all required insurance policies, including endorsements
effecting the coverage required by these specifications.
7. Liquidated Damages. Should the Contractor fail to complete the Project,
or any part thereof, in the time agreed upon in the Contract, the Contractor shall
reimburse the City for the additional expense and damage for each calendar day that
the Contract remains uncompleted after the Contract completion date. It is agreed that
the amount of such additional expense and damage incurred by reason of failure to
complete the Contract is the per diem rate of $500.00 per calendar day. Such amount
is hereby agreed upon as liquidated damages for the loss to the City resulting from the
failure of the Contractor to complete the Project within the allotted time and to the value
of the operation of the works dependent thereon. It is expressly understood and agreed
that this amount is a reasonable amount and is established in lieu of damages that are
incapable of calculation at the inception hereof; and this amount is not to be considered
in the nature of a penalty. The City shall have the right to deduct such damages from
any amount due, or that may become due to the Contractor, or the amount of such
damages shall be due and collectible from the Contractor or the Contractor’s Surety.
Progress payments made after the scheduled completion date shall not constitute a
waiver of liquidated damages.
8. Suspension. City may, in writing, order Contractor to suspend all or any
part of the Contractor’s Services for the convenience of City or for work stoppages
beyond the control of City or Contractor. A suspension of the Services does not void
this Contract.
9. Notices. Any notices, bills, invoices, or reports authorized or required by
this Contract shall be in writing and shall be deemed received on (a) the day of delivery
if delivered by hand or overnight courier service during Contractor’s and City’s regular
business hours or by facsimile before or during Contractor’s regular business hours; or
(b) on the third business day following deposit in the United States mail, postage
prepaid, to the addresses heretofore set forth in the Contract, or to such other
addresses as the parties may, from time to time, designate in writing pursuant to the
provisions of this Section. All notices shall be addressed as follows:
If to City: City Clerk
City of Seal Beach
211-8th Street
Seal Beach, California 90740
Telephone: (562) 431-2527
Fax: (562) 493-9857
With a copy to:
Public Works Director
City of Seal Beach
211-8th Street
Seal Beach, California 90740
If to Contractor: Doug Martin Contracting Company, Inc.
220 Foundation Avenue
La Habra, CA 90631
Telephone: (714) 441-0513
Fax: (714) 441-0541
Attn: Doug Martin
10. Non-Assignability; Subcontracting. Contractor shall not assign, transfer,
or subcontract any interest in this Contract or the performance of any of Contractor’s
obligations hereunder. Any attempt by Contractor to so assign, transfer, or subcontract
any rights, duties, or obligations arising hereunder shall be null, void and of no effect.
11. Compliance with Laws. Contractor shall comply with all applicable federal,
state and local laws, ordinances, codes and regulations in force at the time Contractor
performs the Services.
12. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of
any one or more of the conditions of performance under this Contract shall not be a
waiver of any other condition of performance under this Contract. In no event shall the
making by City of any payment to Contractor constitute or be construed as a waiver by
City of any breach of covenant, or any default which may then exist on the part of
Contractor, and the making of any such payment by City shall in no way impair or
prejudice any right or remedy available to City with regard to such breach or default.
13. Attorneys’ Fees. In the event that either party to this Contract shall
commence any legal action or proceeding to enforce or interpret the provisions of this
Contract, each party shall be responsible for their own attorneys’ fees.
14. Construction. The validity, interpretation, and performance of this
Contract shall be controlled by and construed under the laws of the State of California,
with venue in Orange County, California. In the event of any asserted ambiguity in, or
dispute regarding the interpretation of any matter herein, the interpretation of this
Contract shall not be resolved by any rules of interpretation providing for interpretation
against the party who causes the uncertainty to exist or against the party who drafted
the Contract or who drafted that portion of the Contract.
15. Workers’ Compensation. Labor Code Sections 1860 and 3700 provide
that every contractor will be required to secure the payment of compensation to its
employees. In accordance with the provisions of Labor Code Section 1861, by signing
this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which
require every employer to be insured against liability for workers’
compensation or to undertake self-insurance in accordance with the
provisions of that Code, and I will comply with such provisions before
commencing the performance of the Work of this Contract.”
16. Prevailing Wages. The City and the Contractor acknowledge that the
Project is a public work to which prevailing wages apply.
17. Entire Contract. This Contract, including any other documents
incorporated herein by specific reference, represents the entire and integrated
agreement between Contractor and City. This Contract supersedes all prior oral or
written negotiations, representations, or agreements. This Contract may not be
amended, nor any provision or breach hereof waived, except in a writing signed by the
parties which expressly refers to this Contract.
18. Severability. The invalidity in whole or in part of any provisions of this
Contract shall not void or affect the validity of the other provisions of this Contract.
19. Titles and Headings. The titles and headings used in this Contract are for
convenience only and shall in no way define, limit or describe the scope or intent of this
Contract or any part of it.
20. Authority. Any person executing this Contract on behalf of Contractor
warrants and represents that he or she has the authority to execute this Contract on
behalf of Contractor and has the authority to bind Contractor to the performance of its
obligations hereunder.
21. Counterparts. This Contract may be executed in counterpart originals,
duplicate originals, or both, each of which is deemed to be an original for all purposes.
EXHIBIT A
FAITHFUL PERFORMANCE BOND
Bond No. __________
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Seal Beach (“City”), has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
FY19-20 Annual Slurry Seal Program
(Project name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the
faithful performance of the Contract.
NOW, THEREFORE, we, the undersigned Principal, and
,
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are
held and firmly bound unto the City in the penal sum of
Dollars ($ ), this amount being not less than the total Contract Price, in
lawful money of the United States of America, for the payment of which sum well and truly to be
made, we bind ourselves, our heirs, successors executors and administrators, jointly and
severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his,
her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and
abide by, and well and truly keep and perform the covenants, conditions and provisions in the
Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept
and performed at the time and in the manner therein specified, and in all respects according to
their true intent and meaning, and shall indemnify and save harmless the City, its officers,
agents and employees, as therein stipulated, then this obligation shall become null and void;
otherwise, it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there
shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or
addition to the terms of the Contract or of the Work to be performed thereunder or the
specifications accompanying the same shall in anywise affect its obligations under this Bond,
and it does hereby waive notice of any such change, extension of time, alteration or addition to
the terms of the Contract or to the Work or to the specifications. Surety hereby waives the
provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary
of this Bond and has all rights of a party hereto.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall
for all purposes be deemed an original hereof, have been duly executed by Principal and
Surety, on the date set forth below, the name of each corporate party being hereto affixed and
these presents duly signed by its undersigned representative(s) pursuant to authority of its
governing body.
Dated:
“Principal”
By:
Its
By:
Its
(Seal)
“Surety”
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of
the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT
BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the
Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact
business in the State where the project is located.
EXHIBIT B
PAYMENT BOND
Bond No. __________
PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Seal Beach (“City”), State of California, has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
FY19-20 Annual Slurry Seal Program
(Project name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the
performance of the Work, to file a good and sufficient payment Bond with the City to secure the
claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of
Division 4 of the Civil Code.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are
held and firmly bound unto the City and all contractors, subcontractors, laborers, material
suppliers, and other persons employed in the performance of the Contract and referred to in
Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum
of
Dollars ($ ), for materials furnished or labor thereon of any kind, or for amounts
due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety
will pay the same in an amount not exceeding the amount hereinabove set forth, and also in
case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and
reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in
successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as
costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and
all persons, companies, and corporations entitled to file claims under Title 3 (commencing with
Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or
their assigns in any suit brought upon this Bond.
Upon expiration of the time within which the California Labor Commissioner may serve a civil
wage and penalty assessment against the principal, any of its subcontractors, or both the
principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of
the time within which a joint labor management committee may commence an action against the
principal, any of its subcontractors, or both the principal and its subcontractors pursuant to
Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation
shall become null and void; otherwise, it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration, or
addition to the terms of the Contract or the Specifications accompanying the same shall in any
manner affect its obligations on this Bond, and it does hereby waive notice of any such change,
extension, alteration, or addition.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall
for all purposes be deemed an original hereof, have been duly executed by Principal and
Surety, on the date set forth below, the name of each corporate party being hereto affixed and
these presents duly signed by its undersigned representative(s) pursuant to authority of its
governing body.
Dated:
“Principal”
By:
Its
By:
Its
(Seal)
“Surety”
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence
of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST
NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the
Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact
business in the State where the project is located.
EXHIBIT C
WORKER’S COMPENSATION INSURANCE CERTIFICATE
WORKERS’ COMPENSATION
CERTIFICATE OF INSURANCE
WHEREAS, the City of Seal Beach (“City”) has required certain insurance to be provided by:
NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued
the policy or policies described below to the following named insureds and that the same are in
force at this time:
1. This certificate is issued to:
City of Seal Beach
City Hall
211 8th Street
Seal Beach, California 90740
The insureds under such policy or policies are:
2. Workers’ Compensation Policy or Policies in a form approved by the Insurance
Commissioner of California covering all operations of the named insureds as follows:
Policy Number Effective Date Expiration Date
By:
Its Authorized Representative
EXHIBIT D-1
ADDITIONAL INSURED ENDORSEMENT
COMMERCIAL GENERAL LIABILITY
[INSERT INSURANCE CERTIFICATE SHOWING COMMERCIAL GENERAL LIABILITY]
ADDITIONAL INSURED ENDORSEMENT
COMPREHENSIVE GENERAL LIABILITY
Name and address of named insured (“Named Insured”):
Name and address of insurance company (“Company”):
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:
Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the
“Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:
1. The City of Seal Beach (“City”), its elected officials, officers, attorneys, agents, employees, and
volunteers are additional insureds (the above named additional insureds are hereafter referred to as
the “Additional Insureds”) under the Policy in relation to those activities described generally above
with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds
have no liability for the payment of any premiums or assessments under the Policy.
2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary
insurance, and no other insurance maintained by the Additional Insureds shall be called upon to
contribute with the insurance coverages provided by the Policy.
3. Each insurance coverage under the Policy shall apply separately to each Additional Insured
against whom claim is made or suit is brought except with respect to the limits of the Company’s
liability.
4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one
insured under the policy against another insured under the policy. All such claims shall be covered
as third-party claims, i.e., in the same manner as if separate policies had been issued to each
insured. Nothing contained in this provision shall operate to increase or replicate the Company’s
limits of liability as provided under the policy.
5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms,
conditions and exclusions applicable to such insurance) includes liability assumed by the Named
Insured under the indemnification and/or hold harmless provision(s) contained in or executed in
conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured
and the Additional Insureds.
6. The policy to which this endorsement is attached shall not be subject to cancellation, change in
coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except
after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days
before the effective date thereof. In the event of Company’s failure to comply with this notice
provision, the policy as initially drafted will continue in full force and effect until compliance with this
notice requirement.
7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds,
while acting within the scope of their duties, from all claims, losses and liabilities arising out of or
incident to the perils insured against in relation to those activities described generally above with
regard to operations performed by or on behalf of the Named Insured regardless of any prior,
concurrent, or subsequent active or passive negligence by the Additional Insureds.
8. It is hereby agreed that the laws of the State of California shall apply to and govern the
validity, construction, interpretation, and enforcement of this contract of insurance.
9. This endorsement and all notices given hereunder shall be sent to City at:
City Manager
City of Seal Beach
City Hall
211 8th Street
Seal Beach, CA 90740
10. Except as stated above and not in conflict with this endorsement, nothing contained herein
shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which
this endorsement is attached.
TYPE OF COVERAGES TO WHICH THIS
ENDORSEMENT ATTACHES
POLICY PERIOD
FROM/TO
LIMITS OF
LIABILITY
11. Scheduled items or locations are to be identified on an attached sheet. The following
inclusions relate to the above coverages. Includes:
□ Contractual Liability □ Explosion Hazard
□ Owners/Landlords/Tenants □ Collapse Hazard
□ Manufacturers/Contractors □ Underground Property Damage
□ Products/Completed Operations □ Pollution Liability
□ Broad Form Property Damage □ Liquor Liability
□ Extended Bodily Injury □
□ Broad Form Comprehensive □
□ General Liability Endorsement □
12. A □ deductible or □ self-insured retention (check one) of $ applies to all
coverage(s) except: if none, so state). The deductible is applicable
□ per claim or □ per occurrence (check one).
13. This is an □ occurrence or □ claims made policy (check one).
14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number
.
I, (print name), hereby declare under penalty of perjury under the laws of the State
of California, that I have the authority to bind the Company to this endorsement and that by my execution
hereof, I do so bind the Company.
Executed , 20___
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)
EXHIBIT D-2
ADDITIONAL INSURED ENDORSEMENT
AUTOMOBILE LIABILITY
[INSERT INSURANCE CERTIFICATE SHOWING AUTOMOBILE LIABILITY]
ADDITIONAL INSURED ENDORSEMENT
AUTOMOBILE LIABILITY
Name and address of named insured (“Named Insured”):
Name and address of insurance company (“Company”):
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:
Notwithstanding any inconsistent statement in the policy to which this endorsement is attached
(the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:
1. The City of Seal Beach (“City”), its elected officials, officers, attorneys, agents,
employees, and volunteers are additional insureds (the above named additional insureds are hereafter
referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally
above with regard to operations performed by or on behalf of the Named Insured. The Additional
Insureds have no liability for the payment of any premiums or assessments under the Policy.
2. The insurance coverages afforded the Additional Insureds under the Policy shall be
primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to
contribute with the insurance coverages provided by the Policy.
3. Each insurance coverage under the Policy shall apply separately to each Additional
Insured against whom claim is made or suit is brought except with respect to the limits of the Company’s
liability.
4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim
by one insured under the policy against another insured under the policy. All such claims shall be
covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each
insured. Nothing contained in this provision shall operate to increase or replicate the Company’s limits of
liability as provided under the policy.
5. The insurance afforded by the Policy for contractual liability insurance (subject to the
terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named
Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction
with the written agreement(s) or permit(s) designated above, between the Named Insured and the
Additional Insureds.
6. The policy to which this endorsement is attached shall not be subject to cancellation,
change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal
except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days
before the effective date thereto. In the event of Company’s failure to comply with this notice provision,
the policy as initially drafted will continue in full force and effect until compliance with this notice
requirement.
7. Company hereby waives all rights of subrogation and contribution against the Additional
Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of
or incident to the perils insured against in relation to those activities described generally above with
regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent,
or subsequent active or passive negligence by the Additional Insureds.
8. It is hereby agreed that the laws of the State of California shall apply to and govern the
validity, construction, interpretation, and enforcement of this contract of insurance.
9. This endorsement and all notices given hereunder shall be sent to City at:
City Manager
City of Seal Beach
City Hall
211 8th Street
Seal Beach, CA 90740
10. Except as stated above and not in conflict with this endorsement, nothing contained herein
shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which
this endorsement is attached.
TYPE OF COVERAGES TO WHICH THIS
ENDORSEMENT ATTACHES
POLICY PERIOD
FROM/TO
LIMITS OF
LIABILITY
11. Scheduled items or locations are to be identified on an attached sheet. The following
inclusions relate to the above coverages. Includes:
□ Any Automobiles □ Truckers Coverage
□ All Owned Automobiles □ Motor Carrier Act
□ Non-owned Automobiles □ Bus Regulatory Reform Act
□ Hired Automobiles □ Public Livery Coverage
□ Scheduled Automobiles □
□ Garage Coverage □
12. A □ deductible or □ self-insured retention (check one) of $ applies to all
coverage(s) except: (if none, so state). The deductible is applicable □ per claim or □
per occurrence (check one).
13. This is an □ occurrence or □ claims made policy (check one).
14. This endorsement is effective on ______________ at 12:01 a.m. and forms a part of
Policy Number _________.
I, (print name), hereby declare under penalty of perjury under the laws of the State
of California, that I have the authority to bind the Company to this endorsement and that by my execution
hereof, I do so bind the Company.
Executed , 20___
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)
EXHIBIT D-3
ADDITIONAL INSURED ENDORSEMENT
[INSERT INSURANCE CERTIFICATE SHOWING PROFESSIONAL INSURANCE
LIABILITY, IF REQUIRED]
ADDITIONAL INSURED ENDORSEMENT
EXCESS LIABILITY
Name and address of named insured (“Named Insured”):
Name and address of insurance company (“Company”):
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:
Notwithstanding any inconsistent statement in the policy to which this endorsement is attached
(the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:
1. The City of Seal Beach (“City”), its elected officials, officers, attorneys, agents,
employees, and volunteers are additional insureds (the above named additional insureds are hereafter
referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally
above with regard to operations performed by or on behalf of the Named Insured. The Additional
Insureds have no liability for the payment of any premiums or assessments under the Policy.
2. The insurance coverages afforded the Additional Insureds under the Policy shall be
primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to
contribute with the insurance coverages provided by the Policy.
3. Each insurance coverage under the Policy shall apply separately to each Additional
Insured against whom claim is made or suit is brought, except with respect to the limits of the Company’s
liability.
4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim
by one insured under the policy against another insured under the policy. All such claims shall be
covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each
insured. Nothing contained in this provision shall operate to increase or replicate the Company’s limits of
liability as provided under the policy.
5. The insurance afforded by the Policy for contractual liability insurance (subject to the
terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named
Insured under the indemnification and/or hold harmless provision(s) contained in or executed in
conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured
and the Additional Insureds.
6. The policy to which this endorsement is attached shall not be subject to cancellation,
change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal
except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days
before the effective date thereto. In the event of Company’s failure to comply with this notice provision,
the policy as initially drafted will continue in full force and effect until compliance with this notice
requirement.
7. Company hereby waives all rights of subrogation and contribution against the Additional
Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of
or incident to the perils insured against in relation to those activities described generally above with
regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent,
or subsequent active or passive negligence by the Additional Insureds.
8. It is hereby agreed that the laws of the State of California shall apply to and govern the
validity, construction, interpretation, and enforcement of this contract of insurance.
9. This endorsement and all notices given hereunder shall be sent to City at:
City Manager
City of Seal Beach
City Hall
211 Eighth Street
Seal Beach, California 90740
10. Except as stated above and not in conflict with this endorsement, nothing contained
herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to
which this endorsement is attached.
TYPE OF COVERAGES TO WHICH THIS
ENDORSEMENT ATTACHES
POLICY PERIOD
FROM/TO
LIMITS OF
LIABILITY
□ Following Form
□ Umbrella Liability
□
11. Applicable underlying coverages:
INSURANCE COMPANY POLICY NUMBER AMOUNT
12. The following inclusions, exclusions, extensions or specific provisions relate to the above
coverages:
13. A □ deductible or □ self-insured retention (check one) of $ applies to
all coverage(s) except: (if none, so state). The deductible is applicable
□ per claim or □ per occurrence (check one).
14. This is an □ occurrence or □ claims made policy (check one).
15. This endorsement is effective on ________ at 12:01 a.m. and forms a part of Policy
Number ________.
I, (print name), hereby declare under penalty of perjury under the laws of the State
of California, that I have the authority to bind the Company to this endorsement and that by my execution
hereof, I do so bind the Company.
Executed , 20___
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)
EXHIBIT E
ACKNOWLEDGMENT OF PENAL AND CIVIL PENALTIES CONCERNING
CONTRACTOR LICENSING LAWS
STATEMENT ACKNOWLEDGING PENAL AND CIVIL PENALTIES CONCERNING
THE CONTRACTORS' LICENSING LAWS
[Business & Professions Code § 7028.15]
[Public Contract Code § 20103.5]
I, the undersigned, certify that I am aware of the following provisions of California law and that I, or the
entity on whose behalf this certification is given, hold a currently valid California contractor's license as set
forth below (required at time of award):
Business & Professions Code § 7028.15:
(a) It is a misdemeanor for any person to submit a bid to a public agency in order to engage in the
business or act in the capacity of a contractor within this state without having a license therefore, except
in any of the following cases:
(1) The person is particularly exempted from this chapter.
(2) The bid is submitted on a state project governed by Section 10164 of the Public
Contract Code or on any local agency project governed by Section 20104 [now §
20103.5] of the Public Contract Code.
(b) If a person has been previously convicted of the offense described in this section, the court
shall impose a fine of 20 percent of the price of the contract under which the unlicensed person
performed contracting work, or four thousand five hundred dollars ($4,500), whichever is greater, or
imprisonment in the county jail for not less than 10 days nor more than six months, or both.
In the event the person performing the contracting work has agreed to furnish materials and labor
on an hourly basis, “the price of the contract” for the purposes of this subdivision means the aggregate
sum of the cost of materials and labor furnished and the cost of completing the work to be performed.
(c) This section shall not apply to a joint venture license, as required by Section 7029.1.
However, at the time of making a bid as a joint venture, each person submitting the bid shall be subject to
this section with respect to his or her individual licensure.
(d) This section shall not affect the right or ability of a licensed architect, land surveyor, or
registered professional engineer to form joint ventures with licensed contractors to render services within
the scope of their respective practices.
(e) Unless one of the foregoing exceptions applies, a bid submitted to a public agency by a
contractor who is not licensed in accordance with this chapter shall be considered non-responsive and
shall be rejected by the public agency. Unless one of the foregoing exceptions applies, a local public
agency shall, before awarding a contract or issuing a purchase order, verify that the contractor was
properly licensed when the contractor submitted the bid. Notwithstanding any other provision of law,
unless one of the foregoing exceptions applies, the registrar may issue a citation to any public officer or
employee of a public entity who knowingly awards a contract or issues a purchase order to a contractor
who is not licensed pursuant to this chapter. The amount of civil penalties, appeal, and finality of such
citations shall be subject to Sections 7028.7 to 7028.13, inclusive. Any contract awarded to, or any
purchase order issued to, a contractor who is not licensed pursuant to this chapter is void.
(f) Any compliance or noncompliance with subdivision (e) of this section, as added by Chapter
863 of the Statutes of 1989, shall not invalidate any contract or bid awarded by a public agency during
which time that subdivision was in effect.
(g) A public employee or officer shall not be subject to a citation pursuant to this section if the
public employee, officer, or employing agency made an inquiry to the board for the purposes of verifying
the license status of any person or contractor and the board failed to respond to the inquiry within three
business days. For purposes of this section, a telephone response by the board shall be deemed
sufficient.
Public Contract Code § 20103.5:
In all contracts subject to this part where federal funds are involved, no bid submitted shall be invalidated
by the failure of the bidder to be licensed in accordance with the laws of this state. However, at the time
the contract is awarded, the contractor shall be properly licensed in accordance with the laws of this state.
The first payment for work or material under any contract shall not be made unless and until the Registrar
of Contractors verifies to the agency that the records of the Contractors' State License Board indicate that
the contractor was properly licensed at the time the contract was awarded. Any bidder or contractor not
so licensed shall be subject to all legal penalties imposed by law, including, but not limited to, any
appropriate disciplinary action by the Contractors' State License Board. The agency shall include a
statement to that effect in the standard form of pre-qualification questionnaire and financial statement.
Failure of the Bidder to obtain proper and adequate licensing for an
award of a contract shall constitute a failure to execute the Contract
and shall result in the forfeiture of the security of the Bidder.
License No.:________________ Class:___________________ Expiration Date:_________________
Date:__________________
EXHIBIT F
LABOR LAW REQUIREMENTS
AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS
[Labor Code §§ 1720, 1773.8, 1775, 1776, 1777.5, 1813, 1860, 1861, 3700]
The undersigned Contractor certifies that it is aware of and hereby agrees to fully comply with the
Following provisions of California law:
1. Contractor acknowledges that this Contract is subject to the provisions of Division 2, Part 7, Chapter
1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding
public agency (“Agency”) and agrees to be bound by all the provisions thereof as though set forth in full
herein.
2. Contractor agrees to comply with the provisions of California Labor Code Section 1773.8 which
requires the payment of travel and subsistence payments to each worker needed to execute the Work to
the extent required by law.
3. Contractor agrees to comply with the provisions of California Labor Code Sections 1774 and 1775
concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay
prevailing wages. The Contractor shall, as a penalty to the Agency, forfeit not more than fifty dollars
($50) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as
determined by the Director of Industrial Relations for the work or craft in which the worker is employed for
any public work done under the Contract by Contractor or by any subcontractor.
4. Contractor agrees to comply with the provisions of California Labor Code Section 1776 which require
Contractor and each subcontractor to (1) keep accurate payroll records, (2) certify and make such payroll
records available for inspection as provided by Section 1776, and (3) inform the Agency of the location of
the records. The Contractor is responsible for compliance with Section 1776 by itself and all of its
subcontractors.
5. Contractor agrees to comply with the provisions of California Labor Code Section 1777.5 concerning
the employment of apprentices on public works projects, and further agrees that Contractor is responsible
for compliance with Section 1777.5 by itself and all of its subcontractors.
6. Contractor agrees to comply with the provisions of California Labor Code Section 1813 concerning
penalties for workers who work excess hours. The Contractor shall, as a penalty to the Agency, forfeit
twenty-five dollars ($25) for each worker employed in the execution of the Contract by the Contractor or
by any subcontractor for each calendar day during which such worker is required or permitted to work
more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the
provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.
7. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to
secure the payment of compensation to its employees. In accordance with the provisions of California
Labor Code Section 1861, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to
be insured against liability for worker's compensation or to undertake self-insurance in accordance with
the provisions of that code, and I will comply with such provisions before commencing the performance of
the Work of this Contract.”
Date ___________________ Signature _______________________________________
EXHIBIT G
INDEMNIFICATION AND HOLD HARMLESS AGREEMENT
INDEMNIFICATION AND HOLD HARMLESS AGREEMENT AND WAIVER OF
SUBROGATION AND CONTRIBUTION
OFFICIAL TITLE OF PROJECT: FY19-20 ANNUAL SLURRY SEAL PROGRAM
Indemnitor(s) (list all names):
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and expense, to defend,
protect, indemnify, and hold harmless the City of Seal Beach and its elected officials, officers, attorneys,
agents, employees, volunteers, successors, and assigns (collectively “Indemnitees”) from and against
any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings,
expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of
accountants, attorneys, or other professionals and all costs associated therewith (collectively “Liabilities”),
arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any
act, failure to act, error, or omission of Indemnitor or any of its officers, agents, servants, employees,
subcontractors, materialmen, suppliers or their officers, agents, servants or employees, arising or claimed
to arise, directly or indirectly, out of, in connection with, resulting from, or related to the above-referenced
contract, agreement, license, or permit (the “Contract”) or the performance or failure to perform any term,
provision, covenant, or condition of the Contract, including this indemnity provision. This indemnity
provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by
Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence. This
indemnity provision shall survive the termination of the Contract and is in addition to any other rights or
remedies which Indemnitees may have under the law. Payment is not required as a condition precedent
to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against an
Indemnitee shall be conclusive in favor of the Indemnitee's right to recover under this indemnity provision.
Indemnitor shall pay Indemnitees for any attorneys fees and costs incurred in enforcing this
indemnification provision. Notwithstanding the foregoing, nothing in this instrument shall be construed to
encompass (a) Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying
Contract is subject to Civil Code § 2782(a) or (b) the contracting public agency's active negligence to the
limited extent that the underlying Contract is subject to Civil Code § 2782(b). This indemnity is effective
without reference to the existence or applicability of any insurance coverage which may have been
required under the Contract or any additional insured endorsements which may extend to Indemnitees.
Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of
subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from
all claims, losses and liabilities arising out of or incident to activities or operations performed by or on
behalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligence
by the Indemnitees. In the event there is more than one person or entity named in the Contract as an
Indemnitor, then all obligations, liabilities, covenants and conditions under this instrument shall be joint
and several.
“Indemnitor”
Name________________________________ Name: ____________________________
By: _________________________________ By: ________________________________
Its Its
PR-1
BID PROPOSAL
FY19-20 Annual Slurry Seal Program
PROJECT CIP NO. ST2001
Bidder’s Name __________________________________
TO THE HONORABLE MAYOR AND CITY COUNCIL OF THE CITY OF SEAL BEACH:
The undersigned, as Bidder, declares that: (1)-this Bid is made without collusion with any other person,
firm or corporation, and that the only persons or parties interested as principals are those named herein
as sworn in the attached Non-Collusion Declaration; (2)-Bidder has carefully examined the Project Plans,
Specifications, Instructions To Bidders, Bid Proposal Form, Notice Inviting Sealed Bids and all other
Contract Documents and information furnished therefore and the site of the proposed Work; and (3)-
Bidder has investigated and is satisfied as to the conditions to be encountered, the character, quality and
quantities of Work to be performed and materials to be furnished. Furthermore, Bidder agrees that
submission of this Bid shall be conclusive evidence that such examination and investigation have been
made and agrees, in the event this Contract be awarded to Bidder, to enter into a Contract with the City,
to perform said proposed Work in accordance with the Plans, if any, and the terms of the Specifications,
in the time and manner therein prescribed, and to furnish or provide all materials, labor, tools, equipment,
apparatus and other means necessary so to do, except such thereof as may otherwise be furnished or
provided under the terms of said Specifications, for the following stated unit prices or lump sum price as
submitted on the Bid Sheet herein.
The Bidder shall submit as part of this Bid a completed copy of the Contractor's Industrial Safety Record.
This Safety Record must include all construction work undertaken in the State of California by the Bidder
and any partnership, joint venture or corporation that any principal of the Bidder participated in as a
principal or owner for the last five calendar years and the current calendar year prior to the date of Bid
submittal. Separate information shall be submitted for each such partnership, joint venture, or corporate
or individual Bidder. The Bidder may attach any additional information or explanation of data which the
Bidder would like to be taken into consideration in evaluating the safety record. An explanation of the
circumstances surrounding any and all fatalities must be attached.
Accompanying this Bid is (Circle one "a Cashier's Check", "a certified check", or "a Bidder's Bond in the
form furnished by the City", as the case may be) in the amount of $___________, an amount equal to at
least ten percent (10%) of the total aggregate Bid price based on the quantities shown and the unit prices
quoted. The undersigned Bidder agrees that should Bidder be awarded the Contract on the basis hereof
and thereafter fail or refuse to enter into a Contract and provide the required evidence of insurance and
bonds within fifteen (15) calendar days after written notice of the award, the check or bond shall be
forfeited to the City in accordance with Public Contract Code section -20172, except as otherwise
provided in Public Contract Code section -20174. The undersigned agrees that in the event of such
failure, the actual amount of damages to the City would be impractical and extremely difficult to
determine.
In compliance with the Notice Inviting Sealed Bids, the undersigned hereby agrees to enter into a
Contract to furnish all labor, materials and supplies for this Project in accordance with the Specifications,
Plans and other Contract Documents which are on file in the office of the Engineer, to the satisfaction and
under the direction of the Engineer, at the following prices: completed by the undersigned is fixed at 25
WORKING DAYS starting from the day after the issuance of the Notice to Proceed.
PR-2
$
BID PROPOSAL FOR
FY19-20 Annual Slurry Seal Project
PROJECT CIP NO. ST2001
BID SHEET
Base Bid Items
Item
No. Description Unit Quantity Unit Price
(in Figures)
Extended Price
(in Figures)
1 Mobilization and Demobilization LS 1 $____________
2 Traffic Control LS 1 $____________
3 Sandblast Existing Pavement
Striping LS 1 $____________
4 Crack Seal Existing Pavement LS 1 $____________
5 Furnish and Place Type II Slurry
Seal SF 700,000 $__________ $____________
6 Paint Pavement Striping, Markings
and Legends. LS 1 $____________
TOTAL BASE BID PRICE
(ITEMS NO. 1 THROUGH 6)
WORDS FIGURES
IN CASE OF DISCREPANCY BETWEEN WORDS AND FIGURES, THE WORDS SHALL
PREVAIL.
Note: Items may be adjusted or deleted. Therefore, regardless of total actual volume (percentage)
compared to estimated quantities, the unit prices provided above by the Bidder shall be applied to the
final quantity when payment is calculated for these items. No adjustment in the unit prices will be
allowed. The City reserves the right to not use any of the estimated quantities; and if this right is
exercised, the Contractor will not be entitled to any additional compensation. Cost of all export of material
shall be included in the above unit costs; no additional compensation will be granted for such expenses.
DETERMINATION OF LOWEST BID: LOWEST TOTAL BASE BID
TOTAL BASE BID PRICE IN DIGITS: $____________________
TOTAL BASE BID PRICE IN WORDS: ____________________________________________
PR-3
IN CASE OF DISCREPANCY BETWEEN WORDS AND FIGURES, THE WORDS SHALL
PREVAIL.
Alternate Bid Item
Item
No. Description Unit Quantity Unit Price
(in Figures)
Extended Price
(in Figures)
A1
Furnish and Place Type I
Rubberized Emulsion Aggregate
Slurry (REAS) Seal. (If selected,
this item would replace Item No. 5)
SF 700,000 $__________ $____________
TOTAL ALTERNATE BID PRICE (ITEM A1)
WORDS
FIGURES
NOTE: The City reserves the right to award a Contract to the lowest responsible Bidder in parts or in its
entirety and reserves the right to reject all Bids and re-advertise, as appears to be in the best interests of
the City. A Bid is required for this entire Work, the estimated quantities set forth in this Bid Sheet being
solely for the purpose of comparing Bids, and final compensation under the Contract will be based upon
the actual quantities of work satisfactorily completed. The unit and/or lump sum prices bid shall include
all appurtenant expenses, taxes, royalties, and fees. In the case of discrepancies in the amount bid, unit
prices shall govern over extended amounts, and words shall govern over figures. The City reserves the
right to increase or decrease the amount of any quantity shown and to delete any item from the Contract.
The undersigned Bidder agrees that, if awarded the Contract, Bidder will complete all Work according to
the Contract Documents. The undersigned Bidder is licensed in accordance with the requirements of the
Business and Professions Code, California Contractor's License No.-_________________, Class
________________ (REQUIRED AT TIME OF AWARD).
Legal Business Name of Bidder
Business Address
Business Tel. No.
PR-4
Signature Date
Title
Signature Date Title
Signature Date Title
If Bidder is an individual, name and signature of individual must be provided, and, if he is doing business
under a fictitious name, the fictitious name must be set forth. If Bidder is a partnership or joint venture,
legal name of partnership/joint venture must be provided, followed by signatures of all of the partners/joint
venturers or of fewer than all of the partners/joint venturers if submitted with evidence of authority to act
on behalf of the partnership/joint venture. If Bidder is a corporation, legal name of corporation must be
provided, followed by signatures of the corporation President or Vice President and Secretary or Assistant
Secretary, and the corporate seal. Signatures of partners, joint venturers, or corporation officers must be
acknowledged before a Notary Public, who must certify that such partners, joint venturers, or officers are
known to him or her to be such, and, in the case of a corporation, that such corporation executed the
instrument pursuant to its bylaws or a resolution of its Board of Directors.
Agenda Item F
AGENDA STAFF REPORT
DATE:February 24, 2020
TO:Honorable Mayor and City Council
THRU:Jill R. Ingram, City Manager
FROM:Steve Myrter, P.E., Director of Public Works
SUBJECT:Professional Services Agreement with Tetra Tech, Inc. for
Bolsa Chica Water Well Improvements, CIP WT1603
________________________________________________________________
SUMMARY OF REQUEST:
That the City Council adopt Resolution 7006:
1. Authorizing and directing the City Manager to execute the Agreement;
and,
2. Awarding a Professional Services Agreement with Tetra Tech in a not-
to-exceed amount of $278,000 for the Bolsa Chica Water Well
Improvements, CIP WT1603.
BACKGROUND AND ANALYSIS:
The City owns and maintains four (4) water production wells – (1) Lampson Well,
(2) Beverly Manor Well, (3) Leisure World Well, and (4) Bolsa Chica Well. The
Bolsa Chica Well is located at the southwest corner of Old Bolsa Chica Road at
Bolsa Chica Road intersection. This well was built in 1979 and serves as the
City’s primary water production well.
As recommended in the City’s Water Master Plan, the replacement of aging
equipment is necessary to maintain the system reliability. As such, the Bolsa
Chica Water Well Improvements Project was budgeted into the FY 2019-2020
Capital Improvement Program.
On May 28, 2019, the City entered into an agreement with Steve Andrews
Engineering to provide a preliminary facility assessment and a recommended list
of improvements. On December 2, 2019, staff solicited for full design proposals
utilizing the preliminary study as the basis of work. On January 13, 2020, staff
rated the three (3) submitted proposals based on factors including overall
qualifications, relevant firm experience, understanding and approach, and
deemed Tetra Tech, Inc. as most qualified for this project. According to
6
8
5
Engineering News-Record (ENR), Tetra Tech has consistently ranked among the
top engineering firms, and in 2019 was ranked 1st in the water service industry
again for a total of 16 consecutive years. Tetra Tech has also satisfactorily
performed similar well improvement projects for the Orange County region
including the Cities of Orange, Santa Ana, Fountain Valley, and Irvine Ranch
Water District, and Mesa Water District.
Tetra Tech has submitted a proposal in a not-to-exceed amount of $278,000 to
provide the Bolsa Chica Water Well Improvement design services. The scope-of-
work generally includes:
• Providing full plans, specifications, and estimates.
• Coordinating all necessary permitting with various regulatory agencies.
• Providing bid support and construction support.
• Overseeing start-up testing and instrumentation.
Given the Project’s sensitivity, complexity, and the need to provide safe and
reliable drinking water, staff finds this amount to be reasonable and within
industry standards.
ENVIRONMENTAL IMPACT:
This item is not subject to the California Environmental Quality Act (“CEQA”)
pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be
seen with certainty that approval of a professional services agreement will not
have a significant effect on the environment. Environmental impacts related to
the project construction will be assessed under a separate effort.
LEGAL ANALYSIS:
The City Attorney has reviewed and approved the agreement and resolution as
to form.
FINANCIAL IMPACT:
$800,000 has been allocated in the approved FY 2019-2020 Capital
Improvement Program Budget, CIP WT1603, of which $278,000 will be utilized
for Tetra Tech’s professional services agreement.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
MEASURE BB:
This item is not applicable to Measure BB, the Seal Beach Neighborhood and
Essential Services Protection Measure.
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RECOMMENDATION:
That the City Council adopt Resolution 7006:
1. Authorizing and directing the City Manager to execute the Agreement;
and,
2. Awarding a Professional Services Agreement with Tetra Tech in a not-
to-exceed amount of $278,000 for the Bolsa Chica Water Well
Improvements, CIP WT1603.
SUBMITTED BY: NOTED AND APPROVED:
Steve Myrter Jill R. Ingram
Steve Myrter, P.E., Director of Public Works Jill R. Ingram, City Manager
Prepared by: Iris Lee, Deputy Public Works Director/City Engineer
ATTACHMENTS:
A. Resolution 7006
B. Agreement
RESOLUTION 7006
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AWARDING AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A PROFESSIONAL SERVICES AGREEMENT
WITH TETRA TECH, INC. FOR THE BOLSA CHICA
WATER WELL IMPROVEMENTS, CIP WT1603
WHEREAS, on December 2, 2019, the City issued a Request for Proposals from
qualified professionals to prepare the Bolsa Chica Water Well Improvements; and
WHEREAS, on January 13, 2020, the City received three (3) proposals in response to
the Request for Proposals; and
WHEREAS, the City performed a detail review and evaluation of the proposals; and
WHEREAS, the City has determined that Tetra Tech, Inc. is most qualified to provide
professional engineering design services for the Bolsa Chica Water Well
Improvements.
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby awards a Professional Services Agreement to
Tetra Tech, Inc. for the Bolsa Chica Water Well Improvements in a not-to-exceed
amount of $278,000, and rejects all other proposals; and,
SECTION 2. The City Council hereby authorizes and directs the City Manager, or
her designee, to execute the Professional Services Agreement on behalf of the
City.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular
meeting held on the 24th day of February 2020 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
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Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7006 on file in the office of the
City Clerk, passed, approved, and adopted by the City Council at a regular meeting held
on the 24th day of February 2020.
Gloria D. Harper, City Clerk
PROFESSIONAL SERVICES AGREEMENT
for
Bolsa Chica Water Well Improvements
Professional Engineering Services
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
&
Tetra Tech, Inc.
17885 Von Karman Avenue, Suite 500
Irvine, CA 92614
(909) 809-5000
This Professional Service Agreement (“the Agreement”) is made as of February 24,
2020 (the “Effective Date”), by and between Tetra Tech, Inc. (“Consultant”), a Delaware
corporation, and the City of Seal Beach (“City”), a California charter city, (collectively,
“the Parties”).
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RECITALS
A. City desires certain professional engineering and construction support
services.
B. Pursuant to the authority provided by its City Charter and Seal Beach
Municipal Code § 3.20.025(C), City desires to engage Consultant to provide
professional engineering and construction support services in the manner set
forth herein and more fully described in Section 1.0.
C. Consultant represents that the principal members of its firm are
qualified California-licensed professional engineers and are fully qualified to
perform the services contemplated by this Agreement in a good and
professional manner; and it desires to perform such services as provided
herein.
NOW THEREFORE, in consideration of the Parties' performance of the
promises, covenants, and conditions stated herein, the Parties hereto agree
as follows.
AGREEMENT
1.0 Scope of Services
1.1. Consultant shall provide those services (collectively “Services”) set
forth in the Proposal attached hereto as Exhibit A and incorporated herein by this
reference. To the extent that there is any conflict between Exhibit A and this
Agreement, this Agreement shall control.
1.2. Consultant shall perform all Services under this Agreement in
accordance with the standard of care generally exercised by like professionals
under similar circumstances and in a manner reasonably satisfactory to City.
1.3. In performing this Agreement, Consultant shall comply with all
applicable provisions of federal, state, and local law.
1.4. As a material inducement to City to enter into this Agreement,
Consultant hereby represents that it has the experience necessary to undertake
the Services to be provided. In light of such status and experience, Consultant
hereby covenants that it shall follow the customary professional standards in
performing all Services. The City relies upon the skill of Consultant, and
Consultant’s staff, if any, to do and perform the Services in a skillful, competent,
and professional manner, and Consultant and Consultant’s staff, shall perform
the Services in such manner. Consultant shall, at all times, meet or exceed any
and all applicable professional standards of care. The acceptance of Consultant’s
work by the City shall not operate as a release of Consultant from such standard
of care and workmanship.
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1.5. Consultant will not be compensated for any work performed not
specified in the Scope of Services unless the City authorizes such work in
advance and in writing. The City Manager may authorize extra work to fund
unforeseen conditions up to the amount approved at the time of award by the
City Council. Payment for additional work in excess of this amount requires prior
City Council authorization.
2.0 Term
2.1. The term of this Agreement shall commence on February 24, 2020,
and shall remain in full force and effect until December 31, 2022, unless sooner
terminated as provided in Section 5.0 of this Agreement.
3.0 Consultant’s Compensation
3.1. City will pay Consultant in accordance with the hourly rates shown
on the fee schedule set forth in Exhibit A for the Services but in no event will the
City pay more than the total not-to-exceed amount of $278,000.00 (Two Hundred
Seventy Eight Thousand and 00/XX) for the Original Term.
3.2. Consultant will not be compensated for any work performed not
specified in the Scope of Services unless the City authorizes such work in
advance and in writing. The City Manager may authorize extra work to fund
unforeseen conditions up to the amount approved at the time of award by the
City Council. Payment for additional work in excess of this amount requires prior
City Council authorization. Any additional work authorized by the City Council
pursuant to this Section will be compensated in accordance with the fee
schedule set forth in Exhibit A.
4.0 Method of Payment
4.1. Consultant shall submit to City monthly invoices for all Services
rendered pursuant to this Agreement. Such invoices shall be submitted within 15
days of the end of the month during which the Services were rendered and shall
describe in detail the Services rendered during the period, the days worked,
number of hours worked, the hourly rates charged, and the Services performed
for each day in the period. City will pay Consultant within 30 days of receiving
Consultant’s invoice. City will not withhold any applicable federal or state payroll
and other required taxes, or other authorized deductions from payments made to
Consultant.
4.2. Upon 24-hour notice from City, Consultant shall allow City or City’s
agents or representatives to inspect at Consultant’s offices during reasonable
business hours all records, invoices, time cards, cost control sheets and other
records maintained by Consultant in connection with this Agreement. City’s rights
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under this Section 4.2 shall survive for three (3) years following the termination of
this Agreement.
5.0 Termination
5.1. This Agreement may be terminated by City, without cause, or by
Consultant based on reasonable cause, upon giving the other party written notice
thereof not less than 30 days prior to the date of termination.
5.2. This Agreement may be terminated by City upon 10 days’ notice to
Consultant if Consultant fails to provide satisfactory evidence of renewal or
replacement of comprehensive general liability insurance as required by this
Agreement at least 20 days before the expiration date of the previous policy.
6.0 Party Representatives
6.1. The City Manager is the City’s representative for purposes of this
Agreement.
6.2. Tom Epperson is the Consultant's primary representative for
purposes of this Agreement. Tom Epperson shall be responsible during the term
of this Agreement for directing all activities of Consultant and devoting sufficient
time to personally supervise the Services hereunder. Consultant may not change
its representative without the prior written approval of City, which approval shall
not be unreasonably withheld.
7.0 Notices
7.1. All notices permitted or required under this Agreement shall be
deemed made when personally delivered or when mailed 48 hours after deposit
in the United States Mail, first class postage prepaid and addressed to the party
at the following addresses:
To City: City of Seal Beach
211-8th Street
Seal Beach, California 90740
Attn: City Manager
To Consultant: Tetra Tech, Inc.
17885 Von Karman Avenue, Suite 500
Irvine, CA 92614
Attn: Tom Epperson
7.2. Actual notice shall be deemed adequate notice on the date actual
notice occurred, regardless of the method of service.
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8.0 Independent Contractor
8.1. Consultant is an independent contractor and not an employee of
the City. All work or other Services provided pursuant to this Agreement shall be
performed by Consultant or by Consultant’s employees or other personnel under
Consultant’s supervision, and Consultant and all of Consultant’s personnel shall
possess the qualifications, permits, and licenses required by State and local law
to perform such Services, including, without limitation, a City of Seal Beach
business license as required by the Seal Beach Municipal Code. Consultant will
determine the means, methods, and details by which Consultant’s personnel will
perform the Services. Consultant shall be solely responsible for the satisfactory
work performance of all personnel engaged in performing the Services and
compliance with the customary professional standards.
8.2. All of Consultant’s employees and other personnel performing any
of the Services under this Agreement on behalf of Consultant shall also not be
employees of City and shall at all times be under Consultant's exclusive direction
and control. Consultant and Consultant’s personnel shall not supervise any of
City’s employees; and City’s employees shall not supervise Consultant’s
personnel. Consultant’s personnel shall not wear or display any City uniform,
badge, identification number, or other information identifying such individual as
an employee of City; and Consultant’s personnel shall not use any City e-mail
address or City telephone number in the performance of any of the Services
under this Agreement. Consultant shall acquire and maintain at its sole cost and
expense such vehicles, equipment and supplies as Consultant’s personnel
require to perform any of the Services required by this Agreement. Consultant
shall perform all Services off of City premises at locations of Consultant’s choice,
except as otherwise may from time to time be necessary in order for Consultant’s
personnel to receive projects from City, review plans on file at City, pick up or
deliver any work product related to Consultant’s performance of any Services
under this Agreement, or as may be necessary to inspect or visit City locations
and/or private property to perform such Services. City may make a computer
available to Consultant from time to time for Consultant’s personnel to obtain
information about or to check on the status of projects pertaining to the Services
under this Agreement.
8.3. Consultant shall be responsible for and pay all wages, salaries,
benefits and other amounts due to Consultant’s personnel in connection with
their performance of any Services under this Agreement and as required by law.
Consultant shall be responsible for all reports and obligations respecting such
additional personnel, including, but not limited to: Social Security taxes, other
retirement or pension benefits, income tax withholding, unemployment insurance,
disability insurance, and workers' compensation insurance. Notwithstanding any
other agency, State, or federal policy, rule, regulation, statute or ordinance to the
contrary, Consultant and any of its officers, employees, agents, and
subcontractors providing any of the Services under this Agreement shall not
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become entitled to, and hereby waive any claims to, any wages, salaries,
compensation, benefit or any incident of employment by City, including but not
limited to, eligibility to enroll in, or reinstate to membership in, the California
Public Employees Retirement System (“PERS”) as an employee of City, and
entitlement to any contribution to be paid by City for employer contributions or
employee contributions for PERS benefits.
8.4. Consultant shall indemnify and hold harmless City and its elected
officials, officers, employees, servants, designated volunteers, and agents
serving as independent contractors in the role of City officials, from any and all
liability, damages, claims, costs and expenses of any nature to the extent arising
from, caused by, or relating to Consultant’s personnel practices. or to the extent
arising from, caused by or relating to the violation of any of the provisions of this
Section 8.0. In addition to all other remedies available under law, City shall have
the right to offset against the amount of any fees due to Consultant under this
Agreement any amount due to City from Consultant as a result of Consultant’s
failure to promptly pay to City any reimbursement or indemnification arising under
this Section. This duty of indemnification is in addition to Consultant’s duty to
defend, indemnify and hold harmless as set forth in any other provision of this
Agreement.
9.0 PERS Compliance and Indemnification
9.1. General Requirements. The Parties acknowledge that City is a local
agency member of PERS, and as such has certain pension reporting and
contribution obligations to PERS on behalf of qualifying employees. Consultant
agrees that, in providing its employees and any other personnel to City to
perform any work or other Services under this Agreement, Consultant shall
assure compliance with the Public Employees’ Retirement Law, commencing at
Government Code § 20000, the regulations of PERS, and the Public Employees’
Pension Reform Act of 2013, as amended. Without limitation to the foregoing,
Consultant shall assure compliance with regard to personnel who have active or
inactive membership in PERS and to those who are retired annuitants and in
performing this Agreement shall not assign or utilize any of its personnel in a
manner that will cause City to be in violation of the applicable retirement laws
and regulations.
9.2. Indemnification. Consultant shall defend (with legal counsel
approved by City, whose approval shall not be unreasonably withheld), indemnify
and hold harmless City, and its City and its elected officials, officers, employees,
servants, designated volunteers, and agents serving as independent contractors
in the role of City officials, from any and all liability, damages, claims, costs and
expenses of any nature to the extent arising from, caused by, or relating to
Consultant’s violation of any provisions of this Section 9.0. This duty of
indemnification is in addition to Consultant’s duty to defend, indemnify and hold
harmless as set forth in any other provision of this Agreement.
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10.0 Confidentiality
Consultant covenants that all data, documents, discussion, or other information
developed or received by Consultant or provided for performance of this
Agreement are deemed confidential and shall not be disclosed by Consultant
without prior written authorization by City. City shall grant such authorization if
applicable law requires disclosure. All City data shall be returned to City upon
the termination of this Agreement. Consultant’s covenant under this Section
shall survive the termination of this Agreement.
11.0 Subcontractors
No portion of this Agreement shall be subcontracted without the prior written
approval of the City. Consultant is fully responsible to City for the performance
of any and all subcontractors.
12.0 Assignment
Consultant shall not assign or transfer any interest in this Agreement whether by
assignment or novation, without the prior written consent of City. Any purported
assignment without such consent shall be void and without effect.
13.0 Inspection and Audit of Records
Consultant shall maintain complete and accurate records with respect to all
Services and other matters covered under this Agreement, including but
expressly not limited to, all Services performed, salaries, wages, invoices, time
cards, cost control sheets, costs, expenses, receipts and other records with
respect to this Agreement. Consultant shall maintain adequate records on the
Services provided in sufficient detail to permit an evaluation of all Services in
connection therewith. All such records shall be clearly identified and readily
accessible. At all times during regular business hours, Consultant shall provide
City with free access to such records, and the right to examine and audit the
same and to make copies and transcripts as City deems necessary, and shall
allow inspection of all program data, information, documents, proceedings and
activities and all other matters related to the performance of the Services under
this Agreement. Consultant shall retain all financial and program service
records and all other records related to the Services and performance of this
Agreement for at least three (3) years after expiration, termination or final
payment under this Agreement, whichever occurs later. City’s rights under this
Section 13.0 shall survive for three (3) years after expiration, termination or
final payment under this Agreement, whichever occurs later.
14.0 Safety Requirements
All work performed under this Agreement shall be performed in such a manner
as to provide safety to the public and to meet or exceed the safety standards
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outlined by CAL OSHA. The City may issue restraint or cease and desist orders
to Consultant when unsafe or harmful acts are observed or reported relative to
the performance of the Services. Consultant shall maintain the work sites free of
hazards to persons and property resulting from its operations. Consultant shall
immediately report to the City any hazardous condition noted by Contractor.
15.0 Insurance
15.1. Consultant shall not commence work under this Agreement until it
has provided evidence satisfactory to the City that Consultant has secured all
insurance required under this Section. Consultant shall furnish City with original
certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements
for each insurance policy shall be signed by a person authorized by that insurer
to bind coverage on its behalf, and shall be on forms provided by the City if
requested. All certificates and endorsements shall be received and approved by
the City before work commences. The City reserves the right to require complete,
certified copies of all required insurance policies, at any time.
15.2. Consultant shall, at its expense, procure and maintain for the
duration of the Agreement, insurance against claims for injuries to persons or
damages to property that may arise from or in connection with the performance
of this Agreement. Insurance is to be placed with insurers with a current A.M.
Best's rating no less than A:VIII, licensed to do business in California, and
satisfactory to the City. Coverage shall be at least as broad as the latest
version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2)
Automobile Liability: Insurance Services Office Business Auto Coverage form
number CA 0001, code 1 (any auto); (3) Workers’ Compensation and
Employer’s Liability coverages; and (4) if required by the City, Professional
Liability coverage (or Errors and Omissions coverage). Consultant shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence
for bodily injury, personal injury and property damage and if Commercial
General Liability Insurance or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required
occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily
injury and property damage; (3) Workers’ Compensation in the amount
required by law and Employer’s Liability: $1,000,000 per accident and in the
aggregate for bodily injury or disease; and (4) Professional Liability (or Errors
and Omissions Liability, as appropriate): $1,000,000 per claim/aggregate, and
if a “claims made” policy is provided, then the policy shall be endorsed to provide
an extended reporting period of not less than three years.
15.3. The insurance policies shall contain the following provisions, or
Consultant shall provide endorsements on forms supplied or approved by the
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City to state: (1) coverage shall not be suspended, voided, reduced or canceled
except after 30 days prior written notice by certified mail, return receipt
requested, has been given to the City; (2) any failure to comply with reporting or
other provisions of the policies, including breaches of warranties, shall not
affect coverage provided to the City, its directors, officials, officers, (3) coverage
shall be primary insurance as respects the City, its directors, officials, officers,
employees, agents and volunteers, or if excess, shall stand in an unbroken chain
of coverage excess of the Consultant's scheduled underlying coverage and that
any insurance or self-insurance maintained by the City, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it; (4) for general liability
insurance, that the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the services or
operations performed by or on behalf of the Consultant, including materials, parts
or equipment furnished in connection with such work; and (5) for automobile
liability, that the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the ownership,
operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Consultant or for which the Consultant is responsible.
15.4. All insurance required by this Section shall contain standard
separation of insureds provisions and shall not contain any special limitations on
the scope of protection afforded to the City, its directors, officials, officers,
employees, agents, and volunteers.
15.5. Any deductibles or self-insured retentions shall be declared to and
approved by the City. Consultant guarantees that, at the option of the City, either:
(1) the insurer shall reduce or eliminate such deductibles or self-insured
retentions as respects the City, its directors, officials, officers, employees,
agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing
payment of losses and related investigation costs, claims and administrative and
defense expenses.
16.0 Indemnification, Hold Harmless, and Duty to Defend
Consultant and the City agree that the City, its elected officials, officers,
attorneys, agents, employees, designated volunteers, successors, assigns and
those City agents serving as independent contractors in the role of City officials
(collectively “Indemnitees” in this Section 16.0) should, to the fullest extent
permitted by law, be fully protected from any loss, injury, damage, claim, liability,
lawsuit, cost, expense, attorneys’ fees, litigation costs, defense costs, court costs
and/or any other cost arising out of or in any way related to the performance of
this Agreement. Accordingly, the provisions of this indemnity provision are
intended by the Parties to be interpreted and construed to provide the fullest
protection possible under the law to the City and all other Indemnitees.
Consultant acknowledges that the City would not have entered into this
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Agreement in the absence of the commitment of Consultant to indemnify and
protect the City and the other Indemnitees, as set forth in this Agreement.
16.1. Indemnity for Design Professional Services. To the fullest extent
permitted by law, Consultant shall, at its sole cost and expense, indemnify and
hold harmless the City, its elected officials, officers, attorneys, agents,
employees, designated volunteers, successors, assigns and those City agents
serving as independent contractors in the role of City officials (collectively
“Indemnitees” in this Section 16.0), from and against any and all damages, costs,
expenses, liabilities, claims, demands, causes of action, proceedings, judgments,
penalties, liens, and losses of any nature whatsoever, including fees of
accountants and other professionals, and all costs associated therewith, and
reimbursement of attorneys’ fees and costs of defense (collectively “Claims”),
whether actual, alleged or threatened, which arise out of, pertain to, or relate to,
in whole or in part, the negligence, recklessness or willful misconduct of
Consultant, and/or its officers, agents, servants, employees, subcontractors,
contractors or their officers, agents, servants or employees (or any entity or
individual that Consultant shall bear the legal liability thereof) in the performance
of design professional services under this Agreement by a “design professional,”
as the term is defined under California Civil Code § 2782.8(c). Notwithstanding
the foregoing and as required by Civil Code § 2782.8(a), in no event shall the
cost to defend the Indemnitees that is charged to Consultant exceed Consultant’s
proportionate percentage of fault.
16.2. Other Indemnitees. Other than in the performance of design
professional services, and to the fullest extent permitted by law, Consultant shall,
at its sole cost and expense, protect, defend, hold harmless and indemnify the
Indemnitees from and against any and all damages, costs, expenses, liabilities,
claims, demands, causes of action, proceedings, judgments, penalties, liens and
losses of any nature whatsoever, including fees of accountants, attorneys and
other professionals, and all costs associated therewith, and the payment of all
consequential damages (collectively “Damages”), in law or equity, whether
actual, alleged or threatened, which arise out of, pertain to, or relate to the acts
or omissions of Consultant, its officers, agents, servants, employees,
subcontractors, materialmen, suppliers, or contractors, or their officers, agents,
servants or employees (or any entity or individual that Consultant shall bear the
legal liability thereof) in the performance of this Agreement, including the
Indemnitees’ active or passive negligence, except for Damages arising from the
sole negligence or willful misconduct of the Indemnitees, as determined by final
arbitration or court decision or by the agreement of the Parties. Consultant shall
defend the Indemnitees in any action or actions filed in connection with any
Damages with counsel of the Indemnitees’ choice, and shall pay all costs and
expenses, including all attorneys’ fees and experts’ costs actually incurred in
connection with such defense. Consultant shall reimburse the Indemnitees for
any and all legal expenses and costs incurred by the Indemnitees in connection
therewith.
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16.3. Subcontractor Indemnification. Consultant shall obtain executed
indemnity agreements with provisions identical to those in this Section 16.0 from
each and every subcontractor or any other person or entity involved by, for, with
or on behalf of Consultant in the performance of this Agreement. If Consultant
fails to obtain such indemnities, Consultant shall be fully responsible and
indemnify, hold harmless and defend the Indemnitees from and against any and
all Claims in law or equity, whether actual, alleged or threatened, which arise out
of, are claimed to arise out of, pertain to, or relate to the acts or omissions of
Consultant’s subcontractor, its officers, agents, servants, employees,
subcontractors, materialmen, contractors or their officers, agents, servants or
employees (or any entity or individual that Consultant’s subcontractor shall bear
the legal liability thereof) in the performance of this Agreement, including the
Indemnitees’ active or passive negligence, except for Claims or Damages arising
from the sole negligence or willful misconduct of the Indemnitees, as determined
by final arbitration or court decision or by the agreement of the Parties.
16.4. The obligations of Consultant under this or any other provision of
this Agreement shall not be limited by the provisions of any workers’
compensation act or similar act. Consultant expressly waives any statutory
immunity under such statutes or laws as to the Indemnitees. Consultant’s
indemnity obligation set forth in this Section 16.0 shall not be limited by the limits
of any policies of insurance required or provided by Consultant pursuant to this
Agreement.
16.5. Consultant’s covenants under this Section 16.0 shall survive the
expiration or termination of this Agreement.
17.0 Equal Opportunity
Consultant affirmatively represents that it is an equal opportunity employer.
Consultant shall not discriminate against any subcontractor, employee, or
applicant for employment because of race, religion, color, national origin,
handicap, ancestry, sex, sexual orientation, or age. Such non-discrimination
includes, but is not limited to, all activities related to initial employment,
upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or
termination.
18.0 Labor Certification
By its signature hereunder, Consultant certifies that it is aware of the provisions
of Section 3700 of the California Labor Code that require every employer to be
insured against liability for Workers’ Compensation or to undertake self-insurance
in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
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19.0 Prevailing Wage and Payroll Records
If this Agreement calls for services that, in whole or in part, constitute “public
works” as defined in the California Labor Code, then Consultant shall comply in
all respects with all applicable provisions of the California Labor Code,
including those set forth in Exhibit B, attached hereto and incorporated by
reference herein.
20.0 Entire Agreement
This Agreement contains the entire agreement of the Parties with respect to the
subject matter hereof, and supersedes all prior negotiations, understandings, or
agreements. This Agreement may only be modified by a writing signed by both
Parties.
21.0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not
void or affect the validity of the other provisions of this Agreement.
22.0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws
of the State of California.
23.0 No Third Party Rights
No third party shall be deemed to have any rights hereunder against either party
as a result of this Agreement.
24.0 Waiver
No waiver of any default shall constitute a waiver of any other default or breach,
whether of the same or other covenant or condition. No waiver, benefit, privilege,
or service voluntarily given or performed by a party shall give the other party any
contractual rights by custom, estoppel, or otherwise.
25.0 Prohibited Interests; Conflict of Interest
25.1. Consultant covenants that it presently has no interest and shall not
acquire any interest, direct or indirect, which may be affected by the Services, or
which would conflict in any manner with the performance of the Services.
Consultant further covenants that, in performance of this Agreement, no person
having any such interest shall be employed by it. Furthermore, Consultant shall
avoid the appearance of having any interest, which would conflict in any manner
with the performance of the Services. Consultant shall not accept any
13 of 14
employment or representation during the term of this Agreement which is or may
likely make Consultant "financially interested" (as provided in California
Government Code §§ 1090 and 87100) in any decision made by City on any
matter in connection with which Consultant has been retained.
25.2. Consultant further warrants and maintains that it has not employed
or retained any person or entity, other than a bona fide employee working
exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant
paid or agreed to pay any person or entity, other than a bona fide employee
working exclusively for Consultant, any fee, commission, gift, percentage, or any
other consideration contingent upon the execution of this Agreement. Upon any
breach or violation of this warranty, City shall have the right, at its sole and
absolute discretion, to terminate this Agreement without further liability, or to
deduct from any sums payable to Consultant hereunder the full amount or value
of any such fee, commission, percentage or gift.
25.3. Consultant warrants and maintains that it has no knowledge that
any officer or employee of City has any interest, whether contractual, non-
contractual, financial, proprietary, or otherwise, in this transaction or in the
business of Consultant, and that if any such interest comes to the knowledge of
Consultant at any time during the term of this Agreement, Consultant shall
immediately make a complete, written disclosure of such interest to City, even if
such interest would not be deemed a prohibited "conflict of interest" under
applicable laws as described in this subsection
26.0 Attorneys' Fees
If either party commences an action against the other party, either legal,
administrative or otherwise, arising out of or in connection with this Agreement,
the prevailing party in such litigation shall be entitled to have and recover from
the losing party all of its attorneys’ fees and other costs incurred in connection
therewith.
27.0 Exhibits
All exhibits referenced in this Agreement are hereby incorporated into the
Agreement as if set forth in full herein. In the event of any material discrepancy
between the terms of any exhibit so incorporated and the terms of this
Agreement, the terms of this Agreement shall control.
28.0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or
she is duly authorized to execute this Agreement on behalf of said party and that
by his or her execution, the Consultant is formally bound to the provisions of this
Agreement.
Bolsa Chica
Water Well Improvements
PROFESSIONAL
DESIGN
SERVICES
PROPOSAL FOR
JANUARY 13, 2020
TETRA TECH i
TABLE OF CONTENTS
Firm Qualifications and Experience .................................................................................... 1
Background .................................................................................................................... 1
Organization/Available Resources .................................................................................. 1
Why Tetra Tech .............................................................................................................. 2
The Tetra Tech Team ..................................................................................................... 2
Summary of Staff Qualifications and Experience ............................................................ 5
Understanding of Need ...................................................................................................... 6
Introduction and Background .......................................................................................... 6
Approach ........................................................................................................................ 6
Project Management ....................................................................................................... 7
Communications ............................................................................................................. 7
Quality Control ................................................................................................................ 7
Key Design Issues .......................................................................................................... 8
Scope of Work .................................................................................................................... 9
Relevant Project Experience ............................................................................................ 11
Similar Projects ............................................................................................................. 11
Client References ............................................................................................................. 13
Schedule .......................................................................................................................... 13
Fee ................................................................................................................................... 13
TETRA TECH Page | 1
FIRM QUALIFICATIONS AND EXPERIENCE
Background
Tetra Tech is a Delaware Corporation (publicly traded) and has been in business for over 50 years. Founded
in 1966, Tetra Tech is a nationally‐recognized engineering and resource management firm of more than
20,000 engineers, scientists, construction specialists, and technical support personnel in 450 offices
worldwide. Listed on the NASDAQ Exchange (TTEK), Tetra Tech’s annual revenues now exceed $3.1 billion
(2019). Thus, we are in an excellent financial position and can provide the necessary resources to rapidly
deploy and meet aggressive project schedules.
Tetra Tech consistently ranks among the top engineering firms annually
according to the Engineering News‐Record. In 2019, Tetra Tech was
ranked 5th among the top 500 design firms nationwide and was
ranked #1 in the water service industry for the 16th year in a row!
This project will be managed and directed from our Irvine office
location:
Company Legal Name: Tetra Tech
Address: 17885 Von Karman Avenue, Suite 500
Irvine, CA 92614
Contact Person: Tom Epperson, PE
Telephone: 949/809‐5156
E‐mail: tom.epperson@tetratech.com
Tetra Tech is a leading provider of specialized management consulting
and technical services. We help our clients conceptualize and execute innovative solutions to their most
difficult problems. Our management consulting services are complemented by our technical services,
including research and development, applied science, engineering and architectural design, construction
management, and operations and maintenance. Our clients include a diverse base of public and private
sector organizations located in the U.S. and internationally.
Organization/Available Resources
The specialized expertise of our local office includes the planning, design, and construction management
services for diverse municipal capital improvement facilities. The following summarizes information
specific to our firm, staff, and available resources:
As a publicly traded company, Tetra Tech’s financial information is publicly disclosed on a quarterly basis in
accordance with the regulations of the U.S. Security and Exchange Commission. This information, as well
as our firm’s Annual Reports containing independently audited financial statements, is provided on the
company website.
PROPOSING OFFICE:
Tetra Tech
17885 Von Karman Ave., Suite 500
Irvine, CA 92614
Telephone: 949/809‐5000
CONTACT PERSON:
Tom Epperson, PE, Vice President
949/809‐5156
tom.epperson@tetratech.com
ANNUAL REPORT: Available at: http://www.tetratech.com/annual‐reports.html
TETRA TECH Page | 2
Why Tetra Tech
Our Project Team is the “right” team to provide these services for the following reasons:
Project Manager with Extensive Experience: Our Project Manager, Mr. Tom Epperson, PE, has more
than 39 years of experience devoted entirely to wastewater, water and recycled water facility projects
and has been responsible for completing the design, bidding, and construction management of over
200 miles of water/reclaimed water/sewer mains and 60 water/recycled water pump stations and
wells.
Extensive Well Experience: During the last 15 years, members of our Project Team have been involved
in the design and equipping of 18 water wells within Southern California.
In‐house Process, Structural, Electrical and Control and Hydrogeological Capabilities: We have our
own in‐house process, structural, electrical and control, and hydrogeological engineers. Our in‐house
structural and electrical staff have been working on water facilities for most of their careers and have
also worked on the majority of the previous projects.
Our extensive experience with similar projects will ensure that the City will receive a high level of service
delivered by qualified, knowledgeable engineering professionals. Highly meticulous and coherent plans
and specifications greatly benefit all project stakeholders, with the largest benefit realized by the Owner.
Quality contract documents clearly lead to a larger number of bidders, lower competitive bid prices (due to
increased competition, the contractor has less to assume and take the risk for, and a greater overall
comfort level in our design based on a long history of successful projects), and lowest overall cost while
achieving a very high‐quality end product (quality contract documents mitigates the potential, and impact
of change orders, and sets forth a standard of quality the contract must achieve).
No two projects are the same, although many are similar. The key is to utilize elements of work that have
been successful and apply them to this project and continue to improve construction efficiencies without
lowering quality based on contractor feedback.
Our goal is to provide the necessary expertise and resources to deliver the project on time, within
budget, and in compliance with the design and construction standards set forth by the City. Tetra Tech
has a large talent pool to draw from and can provide the necessary resources to rapidly deploy and meet
aggressive project schedules. In addition, Tetra Tech is especially proud of its high level of repeat
customers, which we attribute to our dedication and commitment to quality engineering and client
satisfaction. Thus, we invite you to contact our references regarding our past record of performance, client
relations, and project satisfaction.
The Tetra Tech Team
Tetra Tech has assembled a project team that possesses the knowledge, experience, and enthusiasm
necessary to successfully complete this project. Our Project Team is devoted to completing your project
within schedule and under budget, and not only meet, but exceed your expectations. On the following
page is our organizational chart of the Project Team who will best serve the City on this project.
TETRA TECH Page | 3
Project Manager
Providing the project team oversight is one of Tetra Tech’s most experienced Project
Managers, Mr. Tom Epperson, PE. Mr. Epperson has more than 39 years of experience
devoted entirely to wastewater, water, and recycled water facility projects and has been
responsible for completing the design of over 200 miles of water, recycled water, and
sewer mains; 36 water/recycled water pump stations; and 18 well‐head facilities. He will
be the focal point for communications between the City and members of the project
team to ensure that the project needs are clearly spelled out and understood. As Project
Manager, Mr. Epperson will be responsible for achieving the City’s stated goals and
ensuring compliance with project intent, completeness of the final deliverables, and satisfaction of the City.
Mr. Epperson is currently working on similar well construction projects including: City of Orange’s Well
No. 27 and No. 28, City of South Gate’s Well No. 27, Orange County Water District’s Mid‐Basin Injection:
TETRA TECH Page | 4
Centennial Park, City of Santa Ana’s Well No. 32, and Mesa Water District’s Well No. 12 and No.13. Mr.
Epperson strongly believes that repeat work is earned through responsiveness, hard work, and providing a
quality product.
Key Senior Staff
The key to success on this project is having the same Project Team that has previously worked on a
number of recent well projects. Our Project Team understands the key issues and can implement the
lessons learned for this new project. We propose to approach this assignment with a spirit of partnership
with the City. This will enable us to combine the knowledge, ideas, and talents of the City’s staff with our
planning, design, and construction experience to provide extraordinary results.
The following introduces key senior members of our Project Team, all of whom have the knowledge,
experience, and enthusiasm necessary to successfully complete your project. It will be our collective goal
to not only meet, but to exceed, your expectations.
Mr. Laurence Esguerra, PE, will be our Deputy Project Manager. Mr. Esguerra has been
involved on over 20 wells, pump stations, and lift stations and over 75 miles of potable and
recycled water pipeline projects. He has been involved in well projects with the City of Orange,
Mesa Water District, Orange County Water District and Irvine Ranch Water District; and this
experience allows him to appropriately manage cost budget and design schedule while
providing quality designs the City expects and deserves.
Mr. Steve Tedesco, PE, will serve as the team’s QA/QC Manager. Our team clearly understands
the importance of making certain the City receives the highest quality product from Tetra
Tech. We have assigned Mr. Tedesco to lead the QA/QC review team for this project and to
strictly monitor the project’s engineering and construction components. As QA/QC Manager, it
will be Mr. Tedesco’s responsibility to assign and oversee QA/QC for each phase of the project
to ensure that all of the project goals are met.
Mr. Mike Tsoi, PE, will be the design lead for the well. Mr. Tsoi has designed over 20 pump
stations, lift stations, and well facilities. During the last 15 years, he has been working almost
exclusively with Tom Epperson on our pump stations and well projects. Mr. Tsoi will utilize his
experience to work through all of the layout issues for the construction/rehabilitation
equipment required to construct and rehabilitate the well in the future.
Mr. Victor Ramirez, PE, SE, will be the Project Manager for Structural Engineering. Mr. Ramirez
has more than 38 years of experience in structural engineering design and construction
support services with an emphasis in the design of water storage/water containment and
water conveyance related structures. This includes: reservoirs, water/wastewater treatment
plants, booster pump stations, well facilities, flow control facilities, pressure reducing stations
and pipelines.
Mr. Mazen Kassar, PE, will be the Project Manager for Electrical and Controls. Mr. Kassar has
more than 27 years of experience in electrical engineering design and construction
management. His background includes designing medium and low voltage power distribution as
well as instrumentation and control systems for a wide variety of projects.
TETRA TECH Page | 5
Summary of Staff Qualifications and Experience
Tetra Tech has selected highly qualified individuals with the task‐to‐talent match to meet the needs of the
project. Personnel available for assignment to this project are on staff and committed to fulfilling their
respective assignments for the full term of the project. The table below outlines the experience, time
commitment, and home office of each team member. Resumes of each individual can be found in the
Appendix ‐ Resumes section of this proposal.
SUMMARY OF STAFF QUALIFICATIONS AND EXPERIENCE
Key Personnel
and Role
Home
Office
Years
of Exp.
No. of
Wells
Time
Commit‐
ment
Similar Experience
Tom Epperson, PE
Project Manager
Contract Signatory
Irvine 39 18 10%
Orange Well No. 27
Orange New Santiago BPS
Santa Ana Well No. 32 Rehab
Mesa Water Well Nos. 12 and 13
OCWD Mid‐Basin
South Gate Well No. 29
IRWD Wells
Paramount Well No. 15
Laurence Esguerra, PE
Deputy Project Manager Irvine 16 20 10%
Orange Well No. 27
Orange New Santiago BPS
Mesa Water Well Nos. 12 and 13
OCWD Mid‐Basin
South Gate Well No. 29
IRWD Wells
Steve Tedesco, PE
QA/QC
Contract Signatory
Irvine 38 23 5%
IRWD Wells
OCWD Mid‐Basin
Santa Ana Projects
Mike Tsoi, PE
Well Design Lead Irvine 29 13 25%
Orange Well No. 27
Santa Ana Well No. 32 Rehab
OCWD Mid‐Basin
IRWD Wells
Victor Ramirez, PE, SE
Structural Lead
San
Dimas 38 9 25%
Orange No. Well 27
Orange New Santiago BPS
Santa Ana Well No. 32 Rehab
OCWD Mid‐Basin
South Gate Well No. 29
Mesa Water Well Nos. 12 and 13
IRWD Wells
Paramount Well No. 15
Mazen Kassar, PE
Electrical/Instrumentation Irvine 27 7 25%
Orange Well No. 27
Orange New Santiago BPS
Santa Ana Well No. 32 Rehab
OCWD Mid‐Basin
South Gate Well No. 29
Mesa Water Well Nos. 12 and 13
IRWD Well Nos. 78, 107
TETRA TECH Page | 6
Tetra Tech, and more importantly, the team dedicated to this project, has demonstrated a track record in
delivering identical services to water agencies in Southern California. This project displays many similar
elements to several past projects involving equipping new wells. We believe our references are our best
demonstration of the successful partnering and completion of these projects. We invite the City to call our
references listed in this proposal.
UNDERSTANDING OF NEED
Introduction and Background
The City of Seal Beach owns and maintains four production wells: Lampson Well, Beverly Manor Well,
Leisure World Well and Bolsa Chica Well. The Bolsa Chica Well is located the southwest corner of Old
Bolsa Chica Road and Bolsa Chica Road in the City of Westminster. The well was constructed in 1979 with
a rate pumping capacity of 3,000 gallons per minute and pumps to a closed system. The existing well is
operated with a variable frequency drive (VFD) that varies flow rate based on system pressure and
demands. The City has not experienced any loss in pumping capacity however the well typically provides
between 1,500 gpm to 2,500 gpm due to seasonal demands and the 3,000 gpm for fire flow. Per our
understanding the well casing has not been video surveyed or rehabilitated.
A preliminary assessment of the Bolsa Chica Well was completed in November 2019 and recommended
the following improvements: Replace existing well pump and motor, replace existing VFD, remove the
existing natural gas back up engine and install a new emergency diesel engine generator, replace existing
on‐site hypochlorite generation (OSCG) system and chlorine feed system, replace existing flow meter and
chart recorders, and provide a SCADA system.
Approach
Tetra Tech fully understands the importance of your project. We are offering an outstanding team, which
combines the experience, depth, and understanding needed for the successful delivery of this project. Our
core principles establish how we plan to work together with the City to complete this project:
Service: Tetra Tech puts its clients first. We listen to and better understand our clients’ needs and
deliver smart, cost‐effective solutions that meet those needs. Our philosophy is to “Do it Right.”
Value: Tetra Tech takes on our clients’ problems as if they were our own. We develop and implement
real‐world solutions that are cost‐effective, efficient, and practical.
Excellence: Tetra Tech brings superior technical capability, disciplined project management, and
excellence in safety and quality to all of our work.
Opportunity: Our people are our number one asset. Our workforce is diverse and includes leading
experts in our fields. Our entrepreneurial nature and commitment to success provides challenges and
opportunities.
Tetra Tech is committed to providing the City with the high‐quality service you expect and deserve. Our
strength lies in our proven track record that has led to successful completion of multiple projects for the
City, as well as other project participants or nearby agencies.
TETRA TECH Page | 7
Project Management
Over the years, Tetra Tech has established well defined, rigorous, procedures for project management.
These techniques have been developed and refined and have contributed to our success and reputation.
The keys to our project management system are communication, project planning, monitoring, and quality
assurance. The Tetra Tech team’s goal is to keep the City staff “in the loop” from Day One of the project.
Communication tools include formal progress reports afforded through our project management system
and an informal give‐and‐take approach starting with Mr. Tom Epperson, our Project Manager, and
extending to every member of the Tetra Tech team. At the project’s outset, the chain of command and
appropriate communication methods will be agreed upon and can be as formal or as informal as the City
desires. We will use the entire communication spectrum. We will conduct formal meetings with agenda
and typewritten notes, and we will use informal meetings with notes to file. We will also have
documentation of telephone communications, with notes to file or letters of understanding as appropriate
follow‐up.
Another important communication link will be our e‐mail system. We are proposing to use e‐mail to keep
the City aware of the status of the project. Every two weeks, Tetra Tech will prepare a brief (one or two
paragraphs or bullet items) e‐mail summarizing the following: activities completed in the previous two
weeks; the activities planned for the upcoming two weeks; any critical decisions that need to be made; and
schedule of upcoming events/meetings. In addition, each month we will prepare a project status report
containing the following: summary of completion of tasks; description of key issues/concerns which have
surfaced along with proposed options and solutions; status of action items; and a project status summary
report showing current schedule and budget status.
Communications
The key to any successful project is good communication. As our project partner, we propose to involve
City staff in open, honest communications from the very start of the project. Our communications will
include: bi‐weekly e‐mail reports; monthly reports, invoices, and schedule updates; regular meetings with
City staff; and project documentation available upon request.
All information can be provided electronically via e‐mail or through a website portal. At each meeting our
team will have our Project Manager and key design staff present to facilitate the discussion. We encourage
the City to have at least one representative from Engineering and one from Operations present at each
meeting. However, we welcome as many City staff who have ideas and input on the project to attend our
progress meetings.
Quality Control
Our team clearly understands the importance of ensuring the City receives a quality product. We have
assigned a QA/QC Manager, Mr. Steve Tedesco, to ensure that all of the project goals are met. A detailed
Quality Control/Quality Assurance Plan will be prepared and submitted for review. This plan establishes
lines of communications and procedures for ensuring quality during all phases of the project’s design and
construction. In keeping with our open communications policy, all of our Quality Control documents will be
made available to the City. Information including design reviews, responses to comments, and redline
plans can be provided in either hard copy or electronically upon request from the City.
TETRA TECH Page | 8
Key Design Issues
Successful implementation of the project will involve resolution of several key issues. We believe Tetra
Tech has an excellent grasp of these issues based on our overall design experience as well as the
knowledge we have gained from similar well design projects. Our approach to resolving project issues is
summarized below:
SUMMARY OF KEY ISSUES
Issue Tetra Tech Approach
Well‐Head Perform hydraulic calculations to confirm the design point of the replacement pump
and confirm motor horsepower. Findings will be presented in the Preliminary Design
Memorandum (PDM).
Removal of existing natural gas engine will require the removal of the existing engine
gravity block, right‐angle gear drive, heat exchanger and Murphy Control Panel. We
recommend all piping and appurtenances (butterfly valves, check valves, pressure relief
valves, etc.) to be replaced.
Removal of existing pump and motor we recommend replacing the existing discharge
head and column piping.
Due to the age of the well we included a task to perform a down‐well video camera
survey during construction when the well pump is removed.
Provide adequate room for future well rehabilitation work.
Site
Improvements
It is anticipated the existing shade structure will need to be removed to facilitate
removal of the natural gas engine. We assumed a new steel shade structure will be
construct above the new well motor.
Due to the limited space on‐site for the installation of a new emergency diesel
generator we propose to evaluate two site alternatives as shown on Figures 1 and 2 in
the Appendix:
Alternative 1 locates the generator within the existing fence which impacts
accessibility and work area adjacent to the well‐head and well building.
Alternative 2 locates the generator outside the existing fence within the driveway
allowing for additional room adjacent to the well‐head and well building.
Disinfection
System
We will evaluate two OSCG systems, PSI Water Technologies Microclor and De Nora
ClorTec systems, and present results in the PDM.
Evaluate chemical injection and sample locations.
Evaluate bulk storage capacity and the potential of increasing storage capacity and
layout.
Electrical and
Controls
Murphy Control Panels are typically used with combustion engines with 24‐volt
electrical systems. New emergency diesel generator does not require a Murphy Control
Panel.
Pump control to be provided PLC and SCADA.
Southern California Edison coordination of improvements.
Existing Well Casing
Per our understanding the condition of the existing well casing has not be assessed. Therefore, during the
construction phase after the well pump is removed, Tetra Tech recommends performing a down‐well
video camera survey to assess the well condition, review the video and provide a brief report on the
condition of the well and provide recommendation for performing any well cleaning or rehabilitation if
TETRA TECH Page | 9
necessary. Well video survey takes approximately 4 hours to complete for a typical well and Tetra Tech will
assume the same for Bolsa Chica Well. Tetra Tech hydrogeologist will oversee the video survey and
prepare a brief report. The report will include a recommendation on whether a well rehabilitation if
necessary.
Regular well inspection and rehabilitation should be a part of routine maintenance program to improve
well production and longevity. The need for well rehabilitation depends on the condition of the well
casing. Typical well rehabilitation methods include brushing and swabbing to remove built‐up biomass and
scale from the well casing and filter pack and bailing or airlifting of debris that has fallen to the bottom of
the casing. The well rehabilitation work may require from one day to several days depending on the extent
to cleaning require; and therefore, the cost for well rehabilitation cannot reasonably be estimated at this
time. Tetra Tech can provide a cost estimate for well rehabilitation if necessary, after the well video
survey.
SCOPE OF WORK
Our Project Team has reviewed the Request for Proposal (RFP) and visited the project site. Based on this
information and our experience with similar projects, we propose the following scope of services:
Task 1: Plans, Specifications, and Estimates
Project Administration and Management: We have assumed to attend four (4) meetings. One (1) project
kick‐off meeting, one (1) Preliminary Design Memorandum Review Meeting, two (2) Submittal Review
Meetings for the 60%, and 90% Design Submittals with the City. Project administration will include
preparation and maintenance of the project schedule, budget, invoicing and bi‐weekly status updates.
Research and Field Investigation: We have assumed the City will provide available Record Drawings,
Water Atlas Maps, and any relevant information to the project. The City will be forwarded copies of the
Utility Information Request and Utility Logs. Tetra Tech will field verify existing conditions of the well site in
preparation of the base files to be used for design.
Preliminary Design Memorandum: The following sections will be provided:
Hydraulic Analysis including Motor Horsepower Evaluation
Mechanical Layout
Conceptual Site and Piping Layout (Two Alternatives)
On‐Site Hypochlorite Generation System Comparison and Chemical Injection Design
List of Major Components
Electrical and Instrumentation Design
Construction Schedule and Cost Estimate
Final Design Plans, Specifications and Estimate: For this proposal, Tetra Tech has assumed the level of
effort to prepare construction drawings and specifications for Well Site Layout Alternative 2 – Generator
Encroaching Driveway with a new shade structure of the well‐head. We envision the following
construction drawings will include the following:
Title Sheet, Location Map, General Notes, Abbreviations, Construction Notes, Horizontal Control Plan
(5 sheets)
Demolition Site Plan
Demolition Sections
Site Plan
TETRA TECH Page | 10
Site Elevations/Sections
Mechanical Plan
Mechanical Sections
Mechanical Details (2 sheets)
Connection Details
Typical Well Details
Disinfection Section and Details (2 sheets)
Site Details
General Structural Notes and Special Inspections and Structural Observations (2 sheets)
Generator Pad Plan and Section
Well Shade Structure Plan and Section
Typical Structural Details
Foundation and Wall Details
Roof Framing Details (2 sheets)
Miscellaneous Structural Details
Electrical General Notes
Electrical Site Plan
Electrical Site and Power Plan (2 sheets)
Instrumentation and Control Plan (2 sheets)
Lighting and Grounding Plan
Single Line Diagram and Elevations
Conduit Schedule
Electrical Details
P&ID (3 sheets)
Technical specifications will be prepared for all components of the project. Tetra Tech will provide the
technical specifications is 5‐Digit CSI format.
A construction cost estimate will be provided with each submittal based on manufacturer provided
information and recent construction bid tab data.
The following is a summary of design submittals that will be made at the following completion levels:
60% Plans, Specifications, and Estimate (PS&E), 90% PS&E, 100% PS&E, Final Signed Bid Documents.
Each submittal will include two (2) full‐size copies (22”x 34”), four (4) true‐half size copies (11”x17”), two
(2) copies of specifications, and PDFs via email link or USB drive.
Task 2: Permitting
NPDES Permit: The project will not require a Notice of Intent with the State Water Resources Control
Board since the project disturbs less than one (1) acre of land, therefore a Storm Water Pollution
Prevention Plan is not required.
CEQA: The Bolsa Chica Water Well Improvement is an existing public facility requiring restoration and or
rehabilitation and qualifies for a Class 1 Categorical Exemption. It is anticipated the City will not require
assistance.
AQMD: We have assumed the permit to construct and operate the emergency diesel generator from Air
Quality Management District will be procured by the Contractor during construction.
TETRA TECH Page | 11
DDW: It is anticipated the Department of Drinking Water will require a permit amendment change in
source water for the installation of the new disinfection system – Section 64556 Requirements. Tetra Tech
will assist the City in obtaining an amendment from Department of Drinking Water.
Task 3: Bid Support
Meetings: We have assumed to one (1) pre‐bid meeting.
Addenda: We have assumed one (1) addendum will be prepared resulting from bidder’s questions,
requests for information, omissions, or incorrect information.
Bid Evaluation: We have assumed four (4) hours to assist the City in the evaluation of contractor bids.
Invoice Support: Tetra Tech will assist the City in reviewing Contractor invoices as requested by the City.
Conformed Set: Tetra Tech will prepare a conformed set of plans and specification incorporating addenda,
bidder’s questions, requests for information, omissions, or incorrect information.
Task 4: Construction Support
Construction Project Management: Tetra Tech will conduct Project Management activities to ensure
adherence to schedule and budget, including frequent communication to the City. We have assumed
construction project management activities will be required for up to ten (10) months.
Construction Meetings: We have assumed to attend three (3) meetings. One (1) pre‐construction meeting
and two (2) meetings as requested by the City.
Submittal Reviews: Per our prior experience we have assumed fifty (50) product submittal reviews will
require a technical review by Tetra Tech.
Respond to Requests for Information (RFIs): We have assumed twenty (20) RFIs will require Tetra Tech’s
response.
Down Well Video Survey: We have assumed Tetra Tech will perform a down well video survey after the
Contractor pulls the pump and to provide a brief memorandum of the condition of the well casing and
recommend potential rehabilitation, if needed.
Record Drawings: At the conclusion of construction, Tetra Tech will prepare final record drawings per
consolidated Contractor and City redlined record drawings. Record Drawings will be prepared in AutoCAD
and will include one (1) full‐size copy (22”x 34”), one (1) true‐half size copy (11”x17”) and PDFs via email
link or USB drive.
RELEVANT PROJECT EXPERIENCE
Similar Projects
Included in the Appendix are detailed descriptions of projects that are very similar to the Bolsa Chica
Water Well Improvement Project: Well No. 27 for the City of Orange, Water Well No. 29 for the City of
South Gate, Well No. 32 for the City of Santa Ana, and Mid‐Basin Injection Project for Orange County
Water District. It should be noted that Well No. 32 for the City of Santa Ana includes the installation of
OSHG System.
TETRA TECH Page | 12
We believe that our project team’s relevant design and construction experience of water well projects
makes us well qualified for this project. Summarized in the below table are recent well facility projects
currently under design, construction, or completed by our project team.
WELL EXPERIENCE
Client Project No. of
Wells
Capacity
(gpm)
Well‐head
Treatment
Completion
Date
Mesa Water District
Phil Lauri, PE
949/631‐1291
Well No. 12, Well No. 13, and
Pipeline 2 4,000 Sodium Hypochlorite
Ammonia
2020
currently
under design
City of Santa Ana
Rudy Rosas, PE
714/647‐3379
Well No. 32 1 3,500 On‐Site Hypochlorite
Generation
2020 currently
under design
Orange County Water
District
Mike Markus, PE
714/378‐3305
Mid‐Basin Injection Centennial Park 4 3,000 No Treatment
2020
currently
under
construction
City of South Gate
Ana Ananda
323/563‐5769
Well No. 29 1 2,500 Sodium Hypochlorite 2018
Chino Basin Desalter
Authority
Cindy Miller
949/472‐3505
Equipping Well Nos. 1‐16,
1‐17, and 1‐18
Equipping of Well Nos. 1‐20 and
1‐21
3
2
750
800
No Treatment
No Treatment
2017
City of Orange
Sonny Tran, PE
714/288‐2475
Well No. 27 1 3,000 Sodium Hypochlorite 2016
City of Lakewood
Jason Wen
562/866‐9771
Plant 13 and Well No. 22
Improvements
Well No. 27
1
1
1,200
2,250
Sodium Hypochlorite /
Corrosion Inhibitor
Chlorination
2016
2006 ‐ 2008
Loma Linda University
Ed Petti
909/558‐4559
LLU Anderson Well No. 4 1 2,100 No Treatment 2015
City of Lakewood
Jason Wen
562/866‐9771
Well Nos. 28 and 29 1 3,000 Iron Manganese
Arsenic 2014 ‐ 2015
Irvine Ranch Water
District
Rich Mori, PE
949/453‐5571
Well No. 115 Replacement 1 1,000 No Treatment 2014
Irvine Ranch Water
District
Rich Mori, PE
949/453‐5571
Well No. 78 Replacement 1 800 No Treatment 2012
Irvine Ranch Water
District
Rich Mori, PE
949/453‐5571
Well No. 107 Replacement
IDP Potable Well Nos. 75, 76, 77,
107, 110, 115
1
6
1,000
4,100
No Treatment
2012
2007
City of Paramount
Adriana Figueroa
562/220‐2100
Well No. 15 and Treatment Plant
Replacement of Chlorine Treatment
at Well Nos. 13 and 14
1
2
3,000
Sodium Hypochlorite
Sodium Hypochlorite
2011
2010 ‐ 2011
TETRA TECH Page | 13
CLIENT REFERENCES
Client satisfaction is a major objective for Tetra Tech and the members of our project team. We strongly
believe that repeat work is earned through hard work, responsiveness, and delivering a quality product.
This commitment to our clients has earned us the privilege of providing continuous service to many clients,
including those presented below. We believe that our clients will attest to our technical excellence and our
responsive staff.
Presented in the following table are references that we encourage the City to contact relative to our
similar experience, development of contract documents, and overall project performance:
REFERENCES
Client and Contact Project Name Project Team Responsible
City of Orange
Sonny Tran, PE
714/288‐2475
Well No. 27
Well No. 28
Tom Epperson, Laurence
Esguerra, Steve Tedesco, Mike
Tsoi, Erin Cabañero, Victor
Ramirez, Eric Yuen, Mazen Kassar,
Nicole Han, Astrid Fleischer
City of Santa Ana
Rudy Rosas, PE
714/647‐3379
Well No. 32
Tom Epperson, Laurence
Esguerra, Erin Cabañero, Victor
Ramirez, Eric Yuen, Mazen
Kassar, Nicole Han, Astrid
Fleischer
Orange County Water District
Mike Markus, PE
714/378‐3305
Mid‐Basin Injection Centennial
Park
Burris Pump Station
Tom Epperson, Steve Tedesco,
Mike Tsoi, Laurence Esguerra,
Victor Ramirez, Mazen Kassar
Mesa Water District
Phil Lauri, PE
949/631‐1291
Well No. 12, Well No. 13, and
Pipeline
Tom Epperson, Laurence
Esguerra, Victor Ramirez, Mazen
Kassar
City of South Gate
Ana Ananda
323/563‐5769
Elizabeth Reservoir and BPS
Water Well No. 29
Tom Epperson, Laurence
Esguerra, Victor Ramirez, Mazen
Kassar
SCHEDULE
Tetra Tech has the necessary resources to rapidly deploy and meet aggressive project schedules. In
addition, our project team has recent well experience that includes many design and construction issues
similar to your project, placing our team high on the issues resolution learning curve. On the next page, we
have identified the key schedule milestones. It is our intent to provide bid ready plans and specifications by
December 1, 2020.
FEE
As requested in the RFP, Tetra Tech has included our Fee Proposal in a separately sealed envelope. Our Fee
Proposal includes estimated hours per task, subconsultant costs, reproduction, and other direct costs. We
have also included our proposed Hourly Rate Schedule and a not‐to‐exceed amount for each phase of the
project.
TETRA TECH Page | 14
Figures
BOL
S
A
C
H
I
C
A
R
D OLD BOLSA CHICA RDxxxxxxxxxxxxxxx x x x x
EXISTING AC UNIT
EXISTING SCE TRANSFORMER VFD ROOM
ELECTRICAL ROOM
SODIUM
HYPOCHLORITE
STORAGE ROOM
ON-SITE
GENERATION ROOM
WELL HEAD
PROPOSED DIESEL
BACKUP GENERATOR
WELL WASTE
DISCHARGE
5'EXISTING 20' (W)
ROLLING ACCESS GATE
PIPE TRAILER 10'±12/17/2019 4:50:15 PM - M:\MARKETING\PROPOSALS\FY 2020\SEALBEACH_BOLSACHICAWTRWELL_XXXXX\3 PROPOSAL\DATA_INFO\CADD\WELL SITE LAYOUT - ALT 1.DWG - CABANERO, ERINwww.tetratech.com
DESN:
PROJ:
DATE:
Bar Measures 1 inch Copyright: Tetra TechFigure
CITY OF SEAL BEACH
BOLSA CHICA WATER WELL IMPROVEMENTS JANUARY 2020
EAC
17885 Von Karman Ave, Ste 500
Irvine, California, 92614
Phone: (949) 809-5000 Fax: (949) 809-5010N0
SCALE:
5'10'20'
1'' = 10'
1
WELL SITE LAYOUT
ALTERNATIVE 1
ALTERNATIVE 1
GENERATOR WITHIN EXISTING SITE
Min 5 ft Clearance around Generator
Approx. 10 ft Clearance from Generator to Existing Electrical/Chemical Building
If more than 10 ft Clearance is required, push block wall out towards Bolsa
Chica Rd. and relocate rolling access gate and extend chain link fence
adjacent to driveway
On-site Sodium Hypochlorite Generation - Produces 0.8% Concentration
(Irritant Liquid), Existing 2,000 gallon storage tank
or if stairs are required.
BOL
S
A
C
H
I
C
A
R
D OLD BOLSA CHICA RDxxxxxxxxxxxxxxx x x x x
EXISTING AC UNIT
EXISTING SCE TRANSFORMER VFD ROOM
ELECTRICAL ROOM
SODIUM
HYPOCHLORITE
STORAGE ROOM
WELL HEAD
PROPOSED DIESEL
BACKUP GENERATOR
x x x x x x
EXISTING 20' (W)
ROLLING ACCESS GATE
ON-SITE
GENERATION ROOM
WELL WASTE
DISCHARGE
PIPE TRAILER 23'±12/17/2019 5:02:42 PM - M:\MARKETING\PROPOSALS\FY 2020\SEALBEACH_BOLSACHICAWTRWELL_XXXXX\3 PROPOSAL\DATA_INFO\CADD\WELL SITE LAYOUT - ALT 2.DWG - CABANERO, ERINwww.tetratech.com
DESN:
PROJ:
DATE:
Bar Measures 1 inch Copyright: Tetra TechFigure
CITY OF SEAL BEACH
BOLSA CHICA WATER WELL IMPROVEMENTS JANUARY 2020
EAC
17885 Von Karman Ave, Ste 500
Irvine, California, 92614
Phone: (949) 809-5000 Fax: (949) 809-5010N0
SCALE:
5'10'20'
1'' = 10'
2
WELL SITE LAYOUT
ALTERNATIVE 2
ALTERNATIVE 2
GENERATOR ENCROACHING DRIVEWAY
Min 5 ft Clearance around Generator
Construct Block Wall on North and East side of Proposed Generator to screen
from street view. Construct new rolling access gate to Generator.
On-site Sodium Hypochlorite Generation - Produces 0.8% Concentration
(Irritant Liquid), Existing 2,000 gallon storage tank
swing
Maintain clearance between existing Electrical/Chemical Building to existing
block wall. Allows space for salt delivery, maintenance access, and future
well rehabilitation.
Project
Descriptions
TETRA TECH Page | 1
Well No. 27 Equipping Plan
Orange, California
Tetra Tech provided engineering design services for the well drilling and well equipping of a potable water
well in the City of Orange. This project originally started in 2008, and due to funding shortage the project
was stopped in 2010. In 2012, the project resumed design. The project was broken up into three stages:
Water Division Warehouse Partial Demolition Plan: The proposed well site is located within an extension
of the City of Orange Water Division warehouse. This portion of work included partial demolition of the
warehouse, grading, and installation of 230 lineal feet of 24‐inch storm drain pipeline for the well waste
line.
Well Drilling Plan: The well drilling plans were for drilling of a 20‐inch portable water well to 950 feet
below ground surface with a maximum operational rate of 3,000 gallons per minute. The work included
destroying the existing Well 14.
Well Equipping Plan: The well equipping plans were for the equipping of a 3,000 gallons per minute
pump, electrical and chemical building for sodium hypochlorite treatment, emergency generator and
acoustical enclosure.
Client Name
City of Orange
Year Completed
2016
Reference
City of Orange
189 S. Water Street
Orange, CA 92866
Sonny Tran, PE
714/288‐2475
stran@cityoforange.org
TETRA TECH Page | 2
Elizabeth Reservoir and Booster Pump Station Water Well No. 29
South Gate, California
Tetra Tech is providing engineering design services for a water
storage tank and booster pump station and a water well with
disinfection equipment. The projects have been set up in
following two stages:
Water Storage Tank and Booster Pumps: The City of South Gate
constructed an above ground welded steel tank reservoir with a storage capacity of 1.8 million gallons, a
booster pump station, relevant appurtenant infrastructure designed to increase water and fire flow
capacity and system pressure in the community. The reservoir, booster pump station, and appurtenances
will be constructed at the existing City of South Gate Well No. 28 site located at 3414 Ardmore Avenue,
South Gate. Site improvements include site lighting, site paving, electrical, and SCADA interface. The
proposed reservoir was connected to the City of South Gate’s existing water system.
Water Well No. 29 and Disinfection Equipment: The water well site is located at the Santa Fe Avenue
Reservoir at 2700 Ardmore Avenue, South Gate and currently contains an existing 500,000 gallon elevated
water tank. The City of South Gate anticipates that the new well will produce approximately 2,500 gallons
per minute and will be supported by a standby emergency generator for backup power with a diesel
storage tank. Chlorination facilities are included in the design and will be housed inside a separate
building. Disinfection equipment will include sodium hypochlorite tanks, metering pumps, and associated
appurtenances. Site improvements will include a perimeter concrete block wall, site lighting, site paving,
electrical, and SCADA interface. The well discharge pipeline will be connected to the City of South Gate’s
existing water system. The project included seismic retrofit and re‐coating of the existing 500,000 elevated
water tank.
Client Name
City of South Gate
Year Completed
2018
Reference
City of South Gate
8650 California Avenue
South Gate, CA 90280
Ana Ananda
323/563‐5769
aanada@sogate.org
TETRA TECH Page | 3
Well No. 32 Rehabilitation
Santa Ana, California
Tetra Tech is providing design engineering services for the rehabilitation of Well No. 32. The existing well is
located within a vault within Morrison Park in the City of Santa Ana. Well No. 32 has been inactive for over
nine years due to low operating efficiencies and high nitrate levels. Rehabilitation of Well No. 32 will
increase the City’s groundwater pumping capacity and lessen their reliance on imported water. Water
from Well No. 32 will be pumped to the John Garthe Reservoir site and be incorporated into the City’s
nitrate blending plan. Instead of treating the high nitrate levels at the well site where space is limited, the
City blends low nitrate water from Wells No. 36 and No. 39 with high nitrate well water at the John Garthe
Reservoir site.
Once the well has be rehabilitated, the existing pump, motor and chemical and electrical equipment will
be removed and the existing vault will be demolished. The rehabilitated well will include a new 2,500
gallons per minute pump, 250 HP motor run off VFD, electrical equipment housed in a new aboveground
CMU block well building. The 12‐inch discharge piping will go from Well #32 to the John Garthe site,
approximately 4,000 linear feet within street right‐of‐way. A new on‐site sodium hypochlorite generation
facility will be constructed at the John Garthe site.
Client Name
City of Santa Ana
Schedule
2020 (currently under
design)
Reference
City of Santa Ana
20 Civic Center Plaza
3rd Floor
Santa Ana, CA 92701
Rudy Rosas, PE
714/647‐3379
rrosas@santa‐ana.org
TETRA TECH Page | 4
Mid-Basin Injection Centennial Park Project
Fountain Valley, California
The Mid‐Basin Injection Centennial Park Project is located within Centennial Park in the City of Santa Ana.
Four injection wells constructed in below ground vaults are proposed to inject 12 MGD of GWRS water into
the principal groundwater aquifer approximately 1,200 feet below ground surface. The project consists of
the following:
Four (4) submersible backflush pumps will be installed within the injection wells with a design flowrate
of 3,000 gpm to purge the entire well column and surrounding strata.
Each of the four injection wells will require a pipeline connection to deliver the supply water for
injection. The source of water for these wells will be the GWRS pipeline located in the western levee of
the Santa Ana River. Approximately 5,700 linear feet of supply pipeline will be constructed to injection
wells within Centennial Park. The supply pipeline is proposed to be cement mortar coated and epoxy
lined steel pipe, and will vary in size from 36‐inch, 16‐inch, and 12‐inch. The supply line will cross the
Santa Ana River which will require the pipeline to be constructed on the newly expanded Edinger
Avenue Bridge.
Approximately 4,200 linear feet of 16‐inch backflush pipeline will be constructed within Centennial
Road to convey well backflush discharge to Centennial Park Lake or the Greenville‐Banning Channel.
A monitoring well is proposed down gradient of the Centennial Park’s injection wells to monitor the
impacts to the groundwater basin. The monitoring well is proposed within the Heritage Museum of
Orange County. The area around the monitoring well will be improved and a new irrigation system for
the museum farm will be installed.
Two (2) shared facilities that will be occupied by OCWD and the City of Santa Ana.
Client Name
Orange County Water
District
Schedule
2020 (currently under
construction)
Reference
Orange County Water
District
18700 Ward Street
Fountain Valley, CA 92708
Michael Markus, PE
714/378‐3305
mmarkus@ocwd.com
Resumes
TETRA TECH T. Epperson – Page | 1
Tom Epperson, PE
Project Manager
Mr. Epperson has more than 39 years of professional experience in water,
wastewater, and reclaimed water engineering. He has been responsible
for the preparation of water, wastewater, and reclaimed water master
plans; project design reports for various water, wastewater, and reclaimed
water facilities; and the planning and design of water, wastewater, and
reclaimed water pipelines, along with pump stations and reservoirs. Mr.
Epperson’s experience includes completing the design, bidding, and
construction management of over 200 miles of water/reclaimed
water/sewer mains, 36 water/reclaimed water pump stations, 18 well‐
head facilities, 12 sewer lift stations, and 25 water and reclaimed water
storage reservoirs throughout Southern California.
EXPERIENCE
Well No. 27, City of Orange, CA. Project Manager for the drilling and
equipping of Well No. 27, a new potable water well (930 feet deep). The
project involved the partial demolition of an existing warehouse to
accommodate the footprint of the new well, installation of a CMU block
control building and sodium hypochlorite building, 12.5% sodium
hypochlorite disinfection facility, sound enclosure around the well‐head,
as well as site and landscaping improvements.
Mid‐Basin Injection: Centennial Park Design Services, Orange County Water District, Santa Ana, CA.
Project Manager responsible for the design of four injection wells located within Centennial Park in the
City of Santa Ana for Orange County Water District. In addition to the engineering services for the four
injection wells, the project includes the design of the supply pipeline, backflush pipeline, bridge crossing,
two shared facility sites, a monitoring well site, site improvements, and paving of park access roads and
parking lots.
Well No. 29 and Elizabeth Reservoir and Booster Pump Station, City of South Gate, CA. Project Manager
for the design and construction support for the drilling and equipping of a new 2,500 gpm well, sodium
hypochlorite facilities, and generator at the well site and a 1.8 MG steel reservoir, booster pump station
consisting of three 125 hp pumps/motors at the reservoir site, and about 5,000 feet of water main
replacements within the City of South Gate. The project combined the well drilling and well equipping
phases of the work together.
Well No. 32 Rehabilitation, City of Santa Ana, CA. Project Manager providing engineering planning and
design to assist with the rehabilitation of Well 32. The project includes the construction of new CMU block
well building and sodium hypochlorite building, sodium hypochlorite disinfection facility, approximately
3,500 linear feet of 12‐inch pipe from Well 32 to John Garthe Reservoir, attached to the channel crossing,
and site improvements.
Equipping Well No. 15 and Treatment Plant, City of Paramount, CA. Project Manager for the design and
construction support for a new bulk sodium hypochlorite and ammonia chemical delivery system at the
City's new Well No. 15. Design included the equipment for the well including the pump and motor, the
discharge piping, and a manganese and future arsenic treatment system. Included within the facility were
an arsenic manganese filtration system, backwash tank, backwash recirculation pumps, sludge mixer
pumps, sodium hypochlorite and ammonia treatment systems, and an emergency generator. The facility
included the following building/enclosures: well building removable sound enclosure; pre‐engineered,
Education:
B.S., Environmental
Engineering, University of
California, Irvine, 1978
Registrations/Certifications:
Professional Engineer,
California, No. 36399, 1983
Professional Affiliations:
American Society of Civil
Engineers
American Water Works
Association
Orange County Water
Association
WateReuse Association
Water Environment Federation
Office Location:
Irvine, CA
Years of Experience:
39
Years with Tetra Tech:
27
TETRA TECH T. Epperson – Page | 2
prefabricated precast concrete electrical building; and prefabricated fiberglass insulated building for the
backwash pump enclosure.
Plant 13 Booster Station Rehabilitation and Well No. 22 Improvements, City of Lakewood, CA. Project
Manager for plans, specifications, and cost estimate for the replacement of a 4,800 gpm booster pump
station and replacement of a 1,200 gpm well pump. In addition to the booster pump station replacement,
the construction was phased so the operational during construction.
Well Equipping and Treatment at Well No. 16, City of Paramount, CA. Project Manager. The City of
Paramount has drilled a new 18‐inch diameter well (Well No. 16) to increase flow into the potable water
system. Based on water quality data collected during drilling the newly drilled Well No. 16 will require
treatment to filter out the naturally occurring arsenic, manganese, and iron. Additionally, the existing
Well No. 13 and Treatment Facility were decommissioned and relocated; and a portion of the existing
treatment system was relocated to the new Well No. 16 site.
Well No. 107 Replacement, Irvine Ranch Water District, Irvine, CA. Project Manager for the preparation
of the plans, specifications, cost estimate, and construction services for the drilling and equipping of a
potable water well in the City of Irvine. This project combined the well drilling and well equipping phases
of the project together.
West Chandler Well, South Croddy Well and Pipeline, Mesa Consolidated Water District, Costa Mesa, CA.
Project Director for the drilling and equipping of Well Nos. 12 and 13, two new potable water wells
(approximately 1,050 feet deep), to provide additional local water reliability to the customers of Mesa
Water District. The project involved the demolition of existing buildings at Well Nos. 12 and 13 properties
within the City of Santa Ana. Both wells are located outside of Mesa Water's service area and require the
construction of approximately 4,400 feet of pipeline to connect the proposed wells to Mesa Water's
existing system. Each well site includes the construction of a vertical turbine pump estimated to produce
approximately 3,000 gpm, new CMU block well building, new chemical storage facility, sodium
hypochlorite and aqua ammonia disinfection facility, and site and landscaping improvements.
Equipping of Well No. 39, City of Santa Ana, CA. Project Manager for the design of the equipping of Well
No. 39 and corresponding piping and site improvements.
Well No. 78 Replacement, Irvine Ranch Water District, Irvine, CA. Project Manager for the drilling and
equipping of a recycled water well in the City of Irvine.
Irvine Desalter Project ‐ Potable Well Nos. 76, 77, 107, and 110, Irvine Ranch Water District, Irvine, CA.
Project Manager for the design and construction services of four potable wells including drilling and
equipping of each well.
Burris Pump Station, Orange County Water District, Anaheim, CA. Project Manager for the design of the
new Burris Pump Station which consists of four 1,750 horsepower vertical turbine pumps delivering a
maximum flow rate of 200 cfs to the Santiago Basins from Burris Basin. Work consisted of reviewing the
existing Burris Pump Station Evaluation Report, assisting Orange County Water District with selecting a
replacement option, performing final design of the selected option and providing bid and construction
phase services. The project also included unique designs: 190,000 cubic yards of earthwork to be
completed prior to pump station construction, the construction of a 55‐foot diameter by 55 ‐foot high
circular wet well which was computer and physically modeled during design for flow characteristics, and
the construction of a 180,000 gallon surge suppression system.
Centennial Park Neighborhood Water Main Improvements, City of Santa Ana, CA. Project Director for
approximately 20,000 linear feet of 8‐inch PVC water main to replace existing water mains.
Central City Water Main Improvements, City of Santa Ana, CA. Project Director for approximately
6,600 linear feet of 8‐inch PVC water main to replace existing water mains.
TETRA TECH L. Esguerra – Page | 1
Laurence Esguerra, PE
Deputy Project Manager
Mr. Esguerra has provided design engineering in various water and
wastewater projects including domestic and reclaimed water pipelines,
water main replacements, gravity sewer mains, pump stations, lift
stations, reinforced concrete reservoirs, flow control facilities, and
pressure reducing valve vaults. Responsibilities have included preparation
of construction plans and specifications, design calculations and project
memorandums.
EXPERIENCE
Well No. 27, City of Orange, CA. Design Engineer for the drilling and
equipping of Well 27, a new potable water well (930 feet deep). The
project involved the partial demolition of an existing warehouse to
accommodate the footprint of the new well, installation of a CMU block
control building and sodium hypochlorite building, 12.5% sodium
hypochlorite disinfection facility, sound enclosure around the well‐head, as well as site and landscaping
improvements.
Mid‐Basin Injection: Centennial Park Design Services, Orange County Water District, Santa Ana, CA.
Project Engineer. Responsible for the design of four injection wells located within Centennial Park in the
City of Santa Ana for Orange County Water District. In addition to the engineering services for the four
injection wells, the project included the design of the supply pipeline, backflush pipeline, bridge crossing,
two shared facility sites, a monitoring well site, site improvements, and paving of park access roads and
parking lots.
Well Nos. 107 and 115 Replacements, Irvine Ranch Water District, Irvine, CA. Design Engineer for the
preparation of plans, specifications, cost estimate and construction services for the drilling and equipping
of potable water wells in the City of Irvine. These projects combined the well drilling and well equipping
phases of the project together.
Well No. 29 and Elizabeth Reservoir and Booster Pump Station, City of South Gate, CA. Project Engineer.
Provided engineering planning, design and construction‐phase services for the construction of a 1.8 MG
steel reservoir and booster pump station located at 3414 Ardmore Avenue and a new potable water well
with the anticipated production of 2,500 gpm, new CMU block well building and sodium hypochlorite
building, 12.5% sodium hypochlorite disinfection facility in the City of South Gate. Project also included the
construction of three horizontal split case pumps, a vertical turbine, 4,700 linear feet of 8‐inch and 12‐inch
pipe, bore and jack under the railroad, and site improvements.
West Chandler Well, South Croddy Well and Pipeline, Mesa Consolidated Water District, Costa Mesa, CA.
Design Engineer for the drilling and equipping of Well Nos. 12 and 13, two new potable water wells
(approximately 1,050 feet deep), to provide additional local water reliability to the customers of Mesa
Water District. The project involved the demolition of existing buildings at Well Nos. 12 and 13 properties
within the City of Santa Ana. Both wells are located outside of Mesa Water's service area and require the
construction of approximately 4,400 feet of pipeline to connect the proposed wells to Mesa Water's
existing system. Each well site includes the construction of a vertical turbine pump estimated to produce
approximately 3,000 gpm, new CMU block well building, new chemical storage facility, sodium
hypochlorite and aqua ammonia disinfection facility, and site and landscaping improvements.
Education:
B.S., Civil Engineering,
University of California, Irvine,
2004
Registrations/Certifications:
Registered Civil Engineer,
California, No. 73803, 2009
Professional Affiliations:
American Society of Civil
Engineers
Office Location:
Irvine, CA
Years of Experience:
16
Years with Tetra Tech:
16
TETRA TECH L. Esguerra – Page | 2
Centennial Park Neighborhood Water Main Improvements, City of Santa Ana, CA. Design Engineer for
approximately 20,000 linear feet of 8‐inch PVC water main to replace existing water mains.
Central City Water Main Improvements, City of Santa Ana, CA. Design Engineer for approximately
6,600 linear feet of 8‐inch PVC water main to replace existing water mains.
Pico‐Lowell Neighborhood Water Main Improvements, City of Santa Ana, CA. Design Engineer for
approximately 8,200 linear feet of 8‐ and 12‐inch PVC water main to replace existing water mains.
Mid City Neighborhood Water Main Replacement Project, City of Santa Ana, CA. Design Engineer for
approximately 9,000 linear feet of 12‐ and 8‐inch PVC water main to replace existing water mains. Project
included the hot tap of two existing water mains and 15 cut in connections.
Bristol Street Widening Water Main Replacement Project, City of Santa Ana, CA. Design Engineer for
approximately 6,000 linear feet of 12‐ and 8‐inch PVC water main to replace existing water mains.
Sand Canyon Grade Separation, Irvine Ranch Water District, Irvine, CA. Design Engineer for the design of
the relocation of over 5,000 linear feet of 8‐ to 24‐inch potable pipeline in the City of Irvine as part of the
Roadway Grade Separation for the Railroad. The project also included the design of 2,000 feet of 16‐inch
recycled waterline.
Carlsbad Seawater Desalination Conveyance Pipeline, KSD Joint Venture, Carlsbad, CA. Design Engineer
for the Carlsbad Conveyance Pipeline Design‐Build Project. The project was designed for the Kiewit Shea
Desalination Joint Venture team and consists of approximately 10 miles of 54‐inch welded steel pipe. The
pipeline was installed in existing city streets and right‐of‐way through the cities of Carlsbad, Vista, and San
Marcos. The 54‐inch transmission main is sized for 54 mgd of desalinated seawater. Pressures range from
250 psi at the point of connection to 500 psi at the seawater desalination plant.
Recycled Water Distribution System Expansion, El Toro Water District, Laguna Woods, CA. Project
Engineer for the design of over 20 miles of recycled water pipelines for the El Toro Water District’s ‐
Recycled Water Distribution System Expansion Project. The pipelines range in size from 4‐inch to 20‐inch in
diameter, and will convey up to 775 acre‐feet of tertiary treated recycled water per year. The major
customer being served recycled water is the Laguna Woods Village Home Owners Association (formerly
Leisure World).
TETRA TECH S. Tedesco – Page | 1
Steve Tedesco, PE, BCEE
QA/QC
Mr. Tedesco is experienced in the planning, analysis, design, and
construction of water supply, water treatment, water distribution and
collection systems. His experience includes water master planning, water
treatment plant design, construction management and Design‐Build
delivery methods. Mr. Tedesco has extensive design experience in the
advanced water and wastewater field, including Desalination, Membrane
Filtration (MF), Reverse Osmosis (RO), Ultraviolet Treatment (UV),
Nanofiltration, and waste disposal projects. He has led membrane system
design teams and managed the design and construction of membrane
desalination projects and membrane filtration plants. Mr. Tedesco brings a
unique perspective to the overall project, as he is well accustomed to not
only reviewing deliverables for quality, but also for constructability.
EXPERIENCE
Well 22 Treatment Facilities, City of Lakewood, CA. Project Director for
the City of Lakewood’s Well 22 Treatment Facilities. Well 22 currently has
issues with sanding, sulfide odor, trihalomethane formation potential and
Total Organic Carbon (TOC). The well was originally designed for a capacity
of 2,500 gpm, however, it is currently operated at 1,400 gpm due to
sanding issues. The City retained Tetra Tech to review and complete a
design for new well‐head treatment facilities prepared by another firm.
Water quality sampling was performed to confirm the constituents of
concern and recommended treatment processes. A technical
memorandum was prepared evaluating various processes for TOC removal including granular activated
carbon (GAC) and chemical oxidation. A video log well inspection was conducted to investigate the sanding
issues and it was determined that the gravel pack did not meet original specifications. As a result, the well
was rehabilitated with a new pump and motor installed. Additional water quality tests were performed
after the rehabilitation was completed to confirm the treatment process selection. The project included
the preparation of final design plans, specifications, cost estimate, bidding assistance and construction
services.
Design‐Build of Well 21 and 22 and Reverse Osmosis Treatment Plant, Irvine Ranch Water District, Irvine,
CA. Served as Design Manager for Wells 21 and 22 Reverse Osmosis Treatment Plant providing overall
design management and client coordination for a brackish groundwater treatment facility. The water
treatment plant consisted of: cartridge filters, pretreatment chemical systems, high pressure feed pumps,
reverse osmosis treatment trains, membrane clean‐in‐place system, decarbonators, post treatment
chemical systems, concentrate disposable system, supervisory control and data acquisition, clearwell,
product water pump station, plant discharge system to storm drain, treatment plant building, auxiliary
building structures, and electrical and instrumentation. The Reverse Osmosis Treatment Plant is sized to
produce 6.27 mgd of product water. Water will be treated to remove salts and nitrates. The project
included design of plans, specifications, and engineer’s cost estimate.
Well 15 Arsenic Treatment Plant, City of Paramount, CA. Project Director for 3.6 mgd arsenic treatment
plant for City of Paramount. A coagulation and pressure filtration system was used to remove arsenic from
a municipal drinking water well. Final design, bidding and construction engineering services were provided
on the project.
Education:
B.S., Civil Engineering,
Polytechnic Institute of New
York, 1979
Registrations/Certifications:
Professional Engineer,
California, No. 39261, 1986
Board Certified Environmental
Engineer (BCEE), California,
No. 11-20037, 2011
Professional Affiliations:
American Society of Civil
Engineers
American Water Works
Association
Orange County Water
Association
Southwest Membrane
Operators Association
WateReuse Association
Office Location:
Irvine, CA
Years of Experience:
38
Years with Tetra Tech:
35
TETRA TECH S. Tedesco – Page | 2
Richardson Treatment Plant, Lockheed Martin Corporation, CA. QA/QC Lead for an Ion Exchange
(IX)/Granular Activated Carbon (GAC) Treatment system designed to remove TCE and Perchlorate from
well feed water. Treatment Plant is supplied by one on‐site and one off‐site newly drilled groundwater well
located in the City of Loma Linda. Total flow rate treated is 4,800 gpm. Design included pretreatment and
post treatment bag filtration, treated water storage break tank, product water booster pump station,
backwash pumping system, backwash waste storage tank and pumping system, backwash waste treatment
system, and chlorination system. Site improvements included an on‐site drywell, gravel and asphalt paving
on the site and a perimeter block wall and two entrance gates, site lighting and camera security system.
Initial engineering work included preparation of a Basis of Design Report. Hydraulic, chemical feed,
structural and electrical calculations were prepared to complete the design plans. Filter Vessels included
(5‐12 diameter) pair for GAC and (3‐12dia) pair for IX equipment. Treated water is conveyed via the
booster pumps to two separate pressure zones within the City of Loma Linda. Electrical design included a
system compatible with City's SCADA system. Electrical loads were estimated to design new 2,000‐amp
electrical service for the site.
Well 27 Arsenic Treatment Plant, City of Lakewood, CA. Project Director for 3.2 mgd arsenic treatment
plant for City of Lakewood, California municipal drinking water well. Services include: technology review,
pilot testing, equipment selection, design and construction engineering services. A coagulation and
pressure filtration system was recommended for this application.
Well No. 11 Rehabilitation, Yorba Linda Water District, Yorba Linda, CA. Project Director for preliminary
design, final design, and construction management services to rehabilitate existing well head facilities.
Design included new 2,800‐gpm pump and 250‐hp motor, pump to waste pipeline and appurtenances,
discharge mechanical pipeline and appurtenances, metering facilities and completely new electrical and
telemetry facilities.
Upgrade of Well Pumping and Water Treatment Facilities, City of Garden Grove, CA. Project Director for
the design of upgrades for Well Nos. 24, 25, 26, and 27. This work included new buildings, chlorination
facilities, emergency chlorine scrubber facilities, emergency generators, piping modifications to provide
auto‐flushing capabilities, upgrading the electrical facilities and control systems to each of these wells.
Central Water Integration Project, San Antonio Water System, TX. QA/QC. Project consists of treatment
facilities, conveyance pipelines, and improvements to existing pump stations and distribution facilities to
integrate a new 48.0 MGD potable water supply source into the utility’s potable water distribution system.
The supply source for this project consisted of a $900 million P3 water supply project that will import
groundwater from a wellfield that is 140 miles from the City of San Antonio. The designed treatment
facilities include pressurized solution injection of carbon dioxide for pH adjustment, lime storage and batch
slaking, lime saturators (solids contactors) for calcium remineralization, dual media pressure filters, a
sodium hypochlorite on‐site generation system, fluoride storage and feed, backwash recovery, filtered
solids and lime sludge gravity thickener, sludge handling and dewatering using centrifuges, and associated
polymer storage and feed systems.
TETRA TECH
Mike Tsoi, PE
Well Design Lead
Mr. Tsoi has more than 29 years of professional experience in water,
wastewater, and recycled water engineering. He has been responsible for
the planning and design of water, wastewater, and recycled water
pipelines along with pump stations, flow control facilities, reservoirs and
site improvements.
EXPERIENCE
Well No. 27 Equipping Plan, City of Orange, CA. Project Engineer for the
preparation of the plans, specifications and cost estimate for the
equipping of a potable water well. As part of the well equipping, a
generator room was installed for backup power.
Mid‐Basin Injection: Centennial Park Design Services, Orange County
Water District, Santa Ana, CA. Project Engineer responsible for the design
of four injection wells located within Centennial Park in the City of Santa
Ana for Orange County Water District. In addition to the engineering services for the four injection wells,
the project includes the design of the supply pipeline, backflush pipeline, bridge crossing, two shared
facility sites, a monitoring well site, site improvements, and paving of park access roads and parking lots.
Well No. 115 Replacement, Irvine Ranch Water District, Irvine, CA. Project Engineer for the drilling and
equipping of a potable water well in the City of Irvine. This project combined the well drilling and well
equipping phases of the project together. Coordination with the City of Irvine and The Irvine Company
were required to procure the land for the well site.
Well No. 107 Replacement, Irvine Ranch Water District, Irvine, CA. Project Engineer for the preparation of
plans, specifications, cost estimate, and construction services for the drilling and equipping of a potable
water well in the City of Irvine. This project combined the well drilling and well equipping phases of the
project together.
Well No. 78 Replacement, Irvine Ranch Water District, Irvine, CA. Project Engineer for the drilling and
equipping of a recycled water well in the City of Irvine. This project included construction of the well within
a highly visible area with limited work space.
Lakewood Well Nos. 28 and 29, City of Lakewood, CA. The City of Lakewood constructed one new water
well expected to produce about 3,000 gpm (Well No. 28) and a second well (Well No. 29) to provide
additional groundwater to supplement the City's water supply source. The City pumps water from the new
well facilities to one of the existing reservoirs. On‐site treatment facilities for iron, manganese arsenic
removal from the new water source is located at the reservoir site. The project consists of preparing a well
siting study and providing recommendations for the new well sites. In addition, a drinking water source
assessment was prepared and submitted to the Health Department for the new well. A well design report
was prepared that incorporated the design plans and technical specifications. Field observation during well
drilling and construction was also part of the scope of work.
Irvine Desalter Project Potable and Non‐Potable Well Drilling and Equipping, Irvine Ranch Water District,
Irvine, CA. Project Engineer for the preparation of plans and specifications for the drilling and equipping
for design of well drilling for five potable water wells and one non‐potable water well. This includes
wellhead equipping for each well for both aboveground and belowground facilities. Also included in this
project was the modification to an existing non‐potable water well.
Education:
B.S., Civil Engineering,
Univ California, Irvine,
1991
Registrations/Certifications:
Registered Professional
Engineer, California, No. 53715,
1994
Professional Affiliations:
American Society of Civil
Engineers
Office Location:
Irvine, CA
Years of Experience:
29
Years with Tetra Tech:
29
TETRA TECH
Victor Ramirez, PE
Structural Design Lead
Mr. Ramirez has more than 38 years of structural engineering design
experience with special emphasis in the design of water storage/water
containment and water conveyance related structures. His experience
includes reservoirs, water/wastewater treatment plants, booster pump
stations, flow control facilities, pressure reducing stations and pipelines.
Mr. Ramirez is thoroughly knowledgeable in all types of construction,
including reinforced concrete, masonry, structural steel, and timber.
EXPERIENCE
Well No. 27, City of Orange, CA. Structural Project Engineer. Provided
design and construction phase structural engineering services for a well
quipping project which consisted of a concrete masonry building for the
wells electrical and control systems and disinfection facilities, foundation
for a pre‐engineered sound attenuating sound enclosure for the wellhead,
emergency generator foundation, site security walls and site
improvements.
Mid‐Basin Injection: Centennial Park Design Services, Orange County
Water District, Santa Ana, CA. Structural Project Manager responsible for
the design of four injection wells located within Centennial Park in the City of Santa Ana for Orange County
Water District. In addition to the engineering services for the four injection wells, the project includes the
design of the supply pipeline, backflush pipeline, bridge crossing, two shared facility sites, a monitoring
well site, site improvements, and paving of park access roads and parking lots.
Well No. 32 Rehabilitation, City of Santa Ana, CA. Structural Engineer providing engineering planning and
design to assist with the rehabilitation of Well 32. The project included the construction of new CMU block
well building and sodium hypochlorite building, sodium hypochlorite disinfection facility, approximately
3,500 linear feet of 12‐inch pipe from Well 32 to John Garthe Reservoir, attached to the channel crossing,
and site improvements.
Design‐Build of Well Nos. 21 and 22 Desalter, Irvine Ranch Water District, Irvine, CA. Structural Project
Engineer for a project that is the third membrane water treatment plant completed by the design/build
team of Tetra Tech and Pascal & Ludwig. The main treatment facility is housed in a 10,000 square foot tilt‐
up concrete building which also contains pump, control, HVAC and electrical rooms. A corner of the
building is constructed on a 12 foot deep, 100,000 gallon, buried, cast‐in‐place concrete water storage
structure. Special consideration was given in the analysis and detailing of the tilt‐up building and buried
concrete structure so that all design forces are properly resisted and the potential differential settlement
between the shallow building foundations and the deep water storage structure is mitigated. Various
concrete and steel structures for pre‐ and post‐treatment areas are also located on the site. These areas
are hidden from public view by 27 foot tall freestanding tilt‐up concrete screen walls and by the main
treatment building itself.
Burris Pump Station, Orange County Water District, Anaheim, CA. Structural Engineer for the
replacement of an existing pumping facility at the Burris Pump Station location. Mr. Ramirez was involved
in the comprehensive design of the 0.8 MG buried circular wet well. The new facility will allow Orange
County Water District to transfer up to 200 cubic feet per second from the Santa Ana River, which will be
and utilized for groundwater recharge to the Santiago Basins.
Education:
B.S., Civil Engineering,
California State University, Los
Angeles, 1995
Registrations/Certifications:
Registered Civil Engineer
California, No. 56863, 1997
Registered Structural Engineer
California, No. 4720, 2004
Professional Affiliations:
American Institute of Steel
Construction
Structural Engineers
Association of Southern
California
Office Location:
San Dimas, CA
Years of Experience:
38
Years with Tetra Tech:
38
TETRA TECH
Mazen Kassar, PE
Electrical Design Lead
Mr. Kassar has more than 27 years of experience in electrical engineering
and industry standards that include electrical engineering staff
management, project management, construction management and
supervision, water and wastewater treatment, petro‐chemical design, and
environmental soil and groundwater treatment. His background includes
designing medium and low voltage power distribution, designing
instrumentation, control systems and SCADA systems for a wide variety of
projects, and the installation of electrical systems for remediation projects,
including soil vapor extraction systems, and groundwater pump‐and‐treat
systems.
EXPERIENCE
Well No. 27, City of Orange, CA. Electrical Project Manager for the
preparation of the plans, specifications and cost estimate for the
equipping of a potable water well. As part of the well equipping, a
generator room was installed for backup power.
Mid‐Basin Injection: Centennial Park Design Services, Orange County
Water District, Santa Ana, CA. Electrical Project Manager responsible for
the design of four injection wells located within Centennial Park in the City
of Santa Ana for Orange County Water District. In addition to the engineering services for the four injection
wells, the project includes the design of the supply pipeline, backflush pipeline, bridge crossing, two shared
facility sites, a monitoring well site, site improvements, and paving of park access roads and parking lots.
Well No. 32, City of Santa Ana, CA. Electrical Engineer for the design of the Well 32 rehabilitation project.
The electrical components include providing power and control to the well and for production of the on‐
site generation sodium hypochlorite facility. In addition, a new fiber optic line would connect the well to
John Garthe Reservoir approximately 3,500 feet away. The alignment will be in the same trench as the
12‐inch discharge pipe to the reservoir.
Elizabeth Reservoir, Booster Pump Station and Well No. 29, City of South Gate, CA. Electrical engineering
services included three new 125 horsepower booster pumps and adding and installing new conduits and
wires to the new pumps. Responsible for preparing plans, specifications, and load calculation to modify the
facility’s extensive distribution system. Site investigations were conducted to verify ratings, settings, and
locations of equipment. Working with utility company to provide new service to the project
Well Nos. 21 and 22 Desalter Plant, Irvine Ranch Water District, Irvine, CA. Well Nos. 21 and 22 Reverse
Osmosis Treatment Plant was designed to remove solids from well water and provide potable water
source. Managed the electrical design of the electrical power and control system, preparing technical
specifications, preparing engineer's cost estimate, preforming electrical power system studies that
included load flow, short circuit and arc flash calculations, and integration with the city's SCADA system.
Crooke Reservoir Electrical Upgrade, City of Santa Ana, CA. Electrical Engineer for the design of the
replacement of the existing motor control panels and switchboards for Crooke Reservoir pump station,
Well 27 and Well 28.
Lakewood Well No. 22 Project, City of Lakewood, CA. Managing the electrical design for Well No. 22
pump upgrade. The design consists of replacing the old well pump VFD with new one and rewiring the new
well pump.
Education:
B.S., Electrical Engineering,
California State University, Long
Beach, 1990
Registrations/Certifications:
Professional Electrical Engineer,
California, No. 15809, 1998
General Construction, Class B
California, No. 777845, 2008
Contractor - C-10 Electrical,
California Class C – Specialty,
No. 777845, 2000
ETAP Electrical Power
Modeling, 2010
Professional Affiliations:
Institute of Electrical and
Electronics Engineers
Office Location:
Irvine, CA
Years of Experience:
27
Years with Tetra Tech:
10
TETRA TECH
Erin Cabañero, PE
Well Design
Ms. Cabañero has provided design engineering in various water and
wastewater projects including domestic and reclaimed water pipelines,
water main replacements, gravity sewer mains, pump stations, lift
stations, reinforced concrete reservoirs, steel tank reservoirs, wells, flow
control facilities, and pressure reducing valve vaults. Ms. Cabañero has
also assisted our engineering design team with preparation of construction
plans, specifications, and design calculations.
EXPERIENCE
Well No. 27, City of Orange, CA. Design Engineer for the drilling and
equipping of Well No. 27, a new potable water well (930 feet deep). The
project involved the partial demolition of an existing warehouse to
accommodate the footprint of the new well, installation of a CMU block
control building and sodium hypochlorite building, 12.5% sodium
hypochlorite disinfection facility, sound enclosure around the wellhead, as well as site and landscaping
improvements.
Mid‐Basin Injection: Centennial Park Design Services, Orange County Water District, Santa Ana, CA.
Design Engineer for four injection wells located within Centennial Park in the City of Santa Ana for Orange
County Water District. In addition to the engineering services for the four injection wells, the project
includes the design of the supply pipeline, backflush pipeline, bridge crossing, two shared facility sites, a
monitoring well site, site improvements, and paving of park access roads and parking lots.
Well No. 29 and Elizabeth Reservoir and Booster Pump Station, City of South Gate, CA. Design Engineer
for the design and construction support for the drilling and equipping of a new 2,500 gpm well, sodium
hypochlorite facilities, and generator at the well site and a 1.8 steel reservoir, booster pump station
consisting of three 125 hp pumps/motors at the reservoir site, and about 5,000 feet of water main
replacements within the City of South Gate. The project combined the well drilling and well equipping
phases of the work together.
Well No. 78 Replacement, Irvine Ranch Water District, Irvine, CA. Design Engineer for the drilling and
equipping of a recycled water well in the City of Irvine.
Burris Pump Station, Orange County Water District, Anaheim, CA. Design Engineer for the design of the
new Burris Pump Station which consists of four 1,750 horsepower vertical turbine pumps delivering a
maximum flow rate of 200 cfs to the Santiago Basins from Burris Basin. Work consisted of reviewing the
existing Burris Pump Station Evaluation Report, assisting Orange County Water District with selecting a
replacement option, performing final design of the selected option and providing bid and construction
phase services. The project also included unique designs: 190,000 cubic yards of earthwork to be
completed prior to pump station construction, the construction of a 55‐foot diameter by 55‐foot high
circular wet well which was computer and physically modeled during design for flow characteristics, and
the construction of a 180,000 gallon surge suppression system.
Peters Canyon Channel Water Capture and Reuse Pipeline, Irvine Ranch Water District, Irvine, CA. Design
Engineer for over 17,000 linear feet of 10‐inch to 16‐inch steel and PVC pipeline. This was a joint project
with the City of Irvine, City of Tustin, County of Orange, and Caltrans. Project included three storm drain
diversion structures and intake design, hanging the pipeline from two bridges, bore and jack under the
railroad and backpressure vault.
Education:
B.S., Civil Engineering,
University of California, Irvine,
2009
Registrations:
Professional Engineer,
California, No. C 89704, 2018
Professional Affiliations:
American Society of Civil
Engineers
Office Location:
Irvine, CA
Years of Experience:
11
Years with Tetra Tech:
11
TETRA TECH
Eric Yuen, PE, SE
Structural Design
Mr. Yuen has more than 12 years of experience in the design, analysis and
detailing in structural engineering. He is knowledgeable in reinforced
concrete, masonry, structural steel and wood frame design, and
construction for a variety of building and infrastructure projects including
reservoirs, water/wastewater treatment facilities, as well as seismic
retrofit of existing structures.
EXPERIENCE
Equipping of Wells 1‐16, 1‐17, and 1‐18, Chino Basin Desalter Authority,
Chino, CA. Tetra Tech provided design and construction engineering
services for the equipping of three new wells at three separate sites. The
scope of the structural design included foundations for prefabricated
electrical enclosures, surge tank, well pedestals, pipe racks, and supports.
Services included conceptual design, permitting assistance, final design,
bid assistance, and construction assistance. Mr. Yuen served as the
structural designer on this project.
Design‐Build of Wells 21 and 22 Desalter, Irvine Ranch Water District, Irvine, Irvine, CA. Mr. Yuen served
as Structural Design Engineer for this design‐build project. This project is a membrane water treatment
plant that consists of a buried rectangular concrete wet well, a concrete tilt‐up process building and
numerous concrete mat foundations. Pascal & Ludwig is our Design‐Build Partner and also the prime
contractor on the project. Tetra Tech will work under Pascal & Ludwig through a subcontractor agreement.
Rancho Del Rey Wellhead Treatment Facility, Otay Water District, Spring Valley, CA. Mr. Yuen served as
Structural Design Engineer for the design of a 5,100 square foot masonry building, with a steel truss
framed roof, which houses a wellhead, RO treatment facility, disinfection equipment, conventionally
reinforced concrete clear well pump station, control room, office and storage area. The design of the
building balances the functional water production requirements with the aesthetic, architectural design of
the exterior of the building, which was critical for compliance with local planning agency requirements.
Burris Pump Station, Orange County Water District, Anaheim, CA. Design Engineer for the replacement of
an existing pumping facility at the Burris Pump Station. Mr. Yuen was involved in the comprehensive
design of the 0.8 MG buried circular wet well. The new facility will allow Orange County Water District to
transfer up to 200 cubic feet per second from the Santa Ana River, which will be utilized for groundwater
recharge to the Santiago Basins. Mr. Yuen also reviewed shop drawings and responded to RFls during the
ongoing construction phase of this project.
Conveyance Pipeline for Carlsbad 50 MGD Seawater Desalination Plant, KSD Joint Venture, Carlsbad, CA.
Assisted with the design of several structures associated with the interconnection of the new 54‐inch
diameter Carlsbad Conveyance Pipeline with the existing SDCWA P3 and P4 pipelines. The four structures
are buried reinforced concrete vaults that consist of two pump wells, two isolation valve vaults, an
interconnect valve vault and a flow control facility.
Milliken Pump Station, Chino Basin Desalter Authority, Ontario, CA. Structural Design Engineer for the
design of a building for a booster pump station with separate pump and electrical rooms. The building has
concrete block walls and a steel framed roof structure. Consideration was given to the appearance of the
building so that it will complement the existing well building and 29 MG prestressed concrete tanks which
share the site with the Milliken Pump Station.
Education:
B.S., Civil Engineering,
California State Polytechnic
University, Pomona, 2007
Registrations/Certifications:
Registered Civil Engineer,
California, No. 75983, 2009
Registered Structural Engineer,
California, No. 6177, 2014
Professional Affiliations:
American Institute of Steel
Construction
Office Location:
San Dimas, CA
Years of Experience:
12
Years with Tetra Tech:
12
TETRA TECH
Nicole Han, PE
Electrical Design
Ms. Han is experienced in the electrical design of water and wastewater
plants, system studies, power distribution, emergency power supply,
motor and instrumentation control. Her projects include designing water
and wastewater plants, desalination plants, lift stations, pump stations,
drinking water wells, pipelines and order control systems.
EXPERIENCE
Mid‐Basin Injection: Centennial Park Design Services, Orange County
Water District, Santa Ana, CA. Electrical Engineer for design of four
injection wells constructed below ground vaults. Wells are proposed to
inject 12 MGD of GWRS water into the principal groundwater aquifer
approximately 1,200 feet below ground surface. Submersible backflush
pumps will be installed within the injection wells. Electrical Engineer
responsible for designing two shared facilities' power distribution, injection well's instrumentation and
control, communication with the other sites and headquarters.
Well No. 29 and Elizabeth Reservoir and Booster Pump Station, City of South Gate, CA. Engineering
design services for a water storage tank and booster pump station and a water well with disinfection
equipment. Electrical engineering services included three new 125 horsepower booster pumps and adding
and installing new conduits and wires to the new pumps. Responsible for preparing plans, specifications,
and load calculation to modify the facility's extensive distribution system. Site investigations were
conducted to verify ratings, settings, and locations of equipment. Working with utility company to provide
new service to the project.
Well No. 7, City of Inglewood, CA. Electrical Engineer for designing power distribution, instrumentation
control plans and specs. The project is to develop a ground water source of portable water.
Loma Linda University Anderson No. 4 Well, Loma Linda, CA. Electrical Engineer responsible for creating
electrical plans, specifications, electrical load schedules, panel schedules, conduit and wire sizing, electrical
details, emergency standby generator sizing, creation of pump control schematics, and drafting technical
specifications. The project design includes providing a new pump, a new PLC system to control well pump
and providing lighting system.
Crooke Reservoir Electrical Upgrade, City of Santa Ana, CA. Electrical Engineer for the design of the
replacement of the existing motor control panels and switchboards for Crooke Reservoir pump station,
Well No. 27 and Well No. 28.
Pyrite Canyon Treatment Facility, State of California, Department of Toxic Substances Control, Glen
Avon, CA. Electrical engineer for the design of the power distribution system. The project is to replace the
existing Stringfellow Pretreatment Plant located in Glen Avon, California, with the Pyrite Canyon
Treatment Facility. The new plant is designed to treat approximately 120 gpm of contaminated
groundwater. Responsible for relocating electrical and instrument equipment. The Instrument and Control
System design includes an Allen Bradley ControlLogix PLC with remote Flex 1/0 connected on an Ethernet
Fiber‐Optic Ring Network to a GE IFIX SCADA HMI system with dedicated historian. The plant also includes
chemical and material handling processes including 40 VFDs controlled via Ethernet network.
Education:
M.S., Electrical Engineering,
Southern California University,
Los Angeles, 2012
Registrations/Certifications:
Professional Electrical Engineer,
California, No. 21429, 2015
Professional Affiliations:
Institute of Electrical and
Electronics Engineers
Office Location:
Irvine, CA
Years of Experience:
7
Years with Tetra Tech:
5
TETRA TECH
Astrid Fleischer, PE
SCADA
Ms. Fleischer is an electrical and controls systems engineer with 28 years of
experience in water treatment, capital improvement and industrial control
projects. Ms Fleischer’s electrical and controls design experience includes
projects in California and overseas involving Modicon Quantum Automation
Platform, Siemens Simatic PLCs, Allen Bradley RSLogix5000 programming,
installation and support services for Wonderware InTouch HMI,
Wonderware Active Factory, Wonderware Historian, installation and
maintenance of Marathon Endurance VTvirtual Redundant Server Systems,
SNMP Network Management implementation and integration into Plant
HMI and network design, configuration and troubleshooting. Additionally,
Astrid is proficient in standard configuration of Schneider Electric Network
Infrastructure Devices (Fiber Optic Repeaters, Switches), interface
programming for Profibus DP and design and integration of Process Control
Application interfacing with Variable Frequency Drives.
EXPERIENCE
SCADA System Project, West Basin Municipal Water District, Carson, CA. I&C Engineer. Specified the
project’s network equipment and technology (4G cellular) as well as the SCADA application software
(SCADA Expert Clear SCADA) for the new SCADA network.
Alamitos Barrier Telemetry System Upgrade, County of Los Angeles Department of Public Works, Los
Angeles, CA. I&C Engineer. Specified the project’s Siemens S7‐1200 control system and network
equipment. Designed the project’s control and instrumentation panels including panel load calculations
and design of the photovoltaic power supply for the control panels. Prepared project documents such as
conduit schedules, project drawings and project specifications.
Alavardo WTP, Miramar WTP, Otay WTP, City of San Diego, CA. Ms. Fleischer is participating in the
preparation of a feasibility report to upgrade the existing SCADA system’s hardware and software, which
has reached end of life, to a current generation of SCADA system infrastructure. Responsible for
researching options for transitioning the existing Stratus everRun FT servers and the SCADA system’s
Wonderware applications to a current generation SCADA system.
Tujunga Spreading Grounds, Los Angeles County, Los Angeles, CA. Ms. Fleischer is providing networking
and instrumentation design services for the Tujunga Spreading Grounds Telemetry System Design and
Construction Support project.
Water Replenishment District of Southern California, GRIP – Advanced Water treatment Facility,
Lakewood, CA. I&C Engineer. Piping and instrumentation diagram (P&ID) design. Process Ethernet and
Profibus network design for integrating Modbus M580 Controllers and Modbus RIOs with Ethernet/IP,
Modbus TCP or Profibus DP capable instrumentation and Siemens Smart Motor Control Centers (MCC) as
well as Wonderware System Platform 2014 redundant servers (with InTouch for System Platform, Device
Integration Servers and Historian). Reviewed Instrumentation & Control, Control Panel, Building Facility
and Electrical Submittals including but not limited to submittals for instrumentation, PLC and SCADA, valve
operators, pumps with appurtenant motors, security system, access control system, solar system, HVAC
system, motor control center, variable frequency drives, and lighting. Responsible for keeping project
documents such as piping and instrumentation diagrams (P&ID), PLC input/output lists, specifications, as
well as conduit and cable schedules up to date.
Education:
B.S., Electrical Engineering,
University of Nuremberg,
Germany, 2000
Industrial Technologist,
Vocational College for Electrical
Engineering and Data Systems
Technology, Erlangen,
Germany, 1991
Registrations/Certifications:
Registered Professional
Engineer in Control Systems,
California No. CS 7440, 2012
Office Location:
Irvine, CA
Years of Experience:
28
Years with Tetra Tech:
5
TETRA TECH
Don Lee, P.G., CHG
Hydrogeology
Mr. Lee has 30 years of professional and managerial experience in
hydrogeological assessments, well drilling, water well design and
construction, water well profiling and testing, percolation testing,
environmental soil and water quality assessment and remedial strategy,
design, and implementation, feasibility studies, remedial action plans and
compliance activities, vapor extraction system design, and technical
review.
EXPERIENCE
City of Lakewood, CA. Designed a 2,000 gpm capacity municipal water
supply wells for City of Lakewood. Completed well siting, permitting
assistance, well design and technical specifications. Well drilling,
installation, and testing are to begin in 2019.
City of Huntington Beach, CA. Provided hydrogeological evaluation and
well design for a 3,000 gpm capacity municipal water supply well for City of
Huntington Beach. Project activities performed include well siting,
permitting assistance, well design, and technical specifications.
City of Torrance, CA. Provided technical review and oversight for the construction of municipal water
supply wells Well No. 10 and Well No. 11 and the destruction of Well No. 6. The new wells are
approximately 600‐foot deep and designed for a sustainable yield of 3,000 gpm.
Water Replenishment District of Southern California, Los Angeles County, CA. Managed well profiling of
municipal water production wells owned by the City of Inglewood, Park Water Company, Maywood
Mutual Water Company No. 1, Maywood Mutual Water Company No.3, Pico Water District, City of Bell
Gardens, City of Compton, City of Huntington Park, City of Vernon, City of Manhattan Beach, West Basin
Municipal Water District, City of Lakewood, and City of Los Angeles for Water Replenishment District of
Southern California. Well profiling utilizes miniaturized equipment without removing the well pump and
motor, thereby saving costs. Well profiling included ambient and dynamic flow profiling, video camera
surveying, and depth‐discrete water quality sampling to determine the flow and chemistry of water
entering different zones across the perforated intervals of the well. Provided evaluation and
recommendations to improve well performance and water quality.
Water Replenishment District of Southern California, Pico Rivera, CA. Designed and managed
construction of three 800‐foot deep groundwater recharge wells and one nested monitoring well adjacent
to San Gabriel River for the Water Replenishment District of Southern California’s Groundwater
Replenishment Improvement Program. Work included preparing technical specifications, NPDES
permitting and reporting, geologic and geophysical analysis to identify appropriate zones for groundwater
recharge, well design that incorporated glass bead filter pack, well construction oversight, well
development, and aquifer pumping tests.
City of Lakewood, CA. Investigated sanding problem in a City of Lakewood water supply well, provided
permitting assistance, design and specifications for well modification and testing, and managed well liner
installation and pumping tests. The well modification was successfully completed.
City of Glendale, CA. Developed technical specifications for municipal water supply well rehabilitation.
Provided oversight during redevelopment activities including pump removal, video camera survey, and
brushing and surging of the well casing.
Education:
Certificate, Applied
Groundwater Flow and
Contaminant Transport
Modeling, Waterloo
Hydrogeologic, Sacramento,
California, 2006
B.Sc., Geology, 1988
Registrations/Certifications:
California Registered
Professional Geologist,
No. 7406, 2002
California Certified
Hydrogeologist, No. 810, 2002
Office Location:
Irvine, CA
Years of Experience:
30
Years with Tetra Tech:
18
17885 Von Karman Avenue, Suite 500, Irvine, CA 92614-5227
Tel 949.809.5000 Fax 949.809.5010 tetratech.com
January 13, 2020 – Revised January 17, 2020
Ms. Iris Lee, PE
Deputy Public Works Director/City Engineer
City of Seal Beach – Department of Public Works
211 Eighth Street
Seal Beach, CA 90740
Reference: REVISED Fee Proposal to Provide Engineering Design Services for the Bolsa Chica Water
Well Improvements
Dear Ms. Lee:
Based upon our telephone conversation, Tetra Tech is pleased to submit our Revised Fee Proposal for the
Bolsa Chica Water Well Improvements project. Tetra Tech has made the following modifications to the
SCOPE OF WORK included in our January 13, 2020 proposal:
Task 1: Plans, Specifications and Estimate – Preliminary Design Memorandum
System-Wide Disinfection Evaluation
Tetra Tech will perform a City system-wide disinfection evaluation which will consist of: meeting with
operations staff to discuss overall water system including sources and disinfection facilities; review proposed
disinfection system improvements; review typical water deliveries from well and import sources; and
prepare a brief summary memorandum summarizing the recommended disinfection system for the Bolsa
Chica Well. We recommend a budget of $10,000 for this evaluation.
3D Site Renderings
Tetra Tech will prepare 3D site renderings of the selected Well Site Layout Alternative for the City’s use. We
recommend a budget of $2,000 for the preparation of these renderings.
Task 1: Plans, Specifications and Estimate – Final Design Plans, Specifications and Estimate
Tetra Tech recommends that the final design budget be increased to include the potential of chloramination
disinfection to match the proposed Navy Reservoir disinfection system instead of the existing chlorination
disinfection system at the Bolsa Chica Well. We are requesting a budget increase of $2,000 for this
additional work.
Task 4: Construction Support – Start-Up Assistance
Tetra Tech will include sixteen (16) hours of well start-up assistance at the City’s request. We recommend a
budget of $4,000 for the start-up assistance.
The total recommended increase in our proposal fee is $18,000 for the above additional items of work.
In summary, our Total-Not-Exceed Price will be increased from $260,000 to $278,000.
Ms. Iris Lee, PE
Reference: REVISED Fee Proposal to Provide Engineering Design Services for the Bolsa Chica Water Well Improvements
January 13, 2020 – Revised January 17, 2020
2 TETRA TECH
All work will be performed on a time and materials basis “not-to-exceed” the contract price and no
additional compensation will be received beyond the price negotiated to be performed unless changes are
approved in advance by an amendment to our contract signed by the City.
Attached is our work plan with a breakdown of labor hours by employee billing classification, together with
the cost of non-labor services included in the fee proposal. The attached rate schedule includes Tetra Tech’s
standard billing rates for all classifications of staff likely to be involved in the project; as well as overhead,
profit, and expenses.
Tetra Tech appreciates the opportunity to submit this Revised Fee Proposal and looks forward to working
with the City. Should you require additional information or have any questions, please don’t hesitate to
contact us.
Sincerely,
Tom Epperson, PE Steve Tedesco, PE, BCEE
Vice President Senior Vice President
LE/TLE/de
Attachments
M:\Marketing\Proposals\FY 2020\City of Seal Beach-Bolsa Chica Well Improvements
Price Summary / Totals
Task Pricing Totals 278,000
Specify Add'l Fees on Setup 0
Technology Use Fee
Proj Area >QA/QC Civil Civil Civil Civil Civil Civil Structural Structural Structural Electrical Electrical I&C 278,000
Submitted to: City of Seal Beach (Attn: Iris Lee)
Contract Type: T&M
Project Phases / Tasks From Thru Months 1,765 57 130 198 148 444 64 18 44 112 98 70 245 137 0.00%271,930 5,000 - - 1,070 278,000
2 3 4 5 6 7 8 10 11 12 13 14 15
Task 1 Plans Specifications and Estimate 1,407 38 67 130 144 364 56 14 36 88 98 50 205 117 210,720 - - - 280 211,000
Project Administration and Management 36 6 24 4 - - - - - - - 2 - - 8,380 - - - 120 8,500
Meetings (4)12 2 4 4 2 2,660 120 2,780
Project Management (9 months)14 4 10 3,520 3,520
Bi-Weekly Status Reports 10 10 2,200 2,200
Research and Field Investigation 36 - - 4 10 12 4 2 - - - 2 2 - 4,840 - - - 160 5,000
Utility Research 6 4 2 680 60 740
Record Drawing Review 6 2 4 760 760
Field Visit 8 2 2 2 2 1,400 100 1,500
Preparation of Base Files 16 4 8 4 2,000 2,000
Preliminary Design Memorandum 243 8 19 46 46 84 8 2 2 6 - 2 12 8 34,800 - - - - 34,800
Hydraulic Calculations 22 2 4 16 2,880 2,880
System Wide Disinfection Evaluation 68 4 8 16 40 10,000 10,000
On-Site Hypochlorite Generation System Evaluation 20 4 8 8 2,440 2,440
Design Alternatives (2 Site Alternatives)20 2 4 4 8 2 2,710 2,710
Multi-year Construction Phasing Alternative 10 2 4 4 1,500 1,500
Construction Cost Estimate 11 1 2 8 1,400 1,400
Memorandum Preparation 72 4 8 18 8 2 2 2 6 2 12 8 10,550 10,550
3D Site Renderings 16 4 8 4 2,000 2,000
QA/QC 4 4 1,320 1,320
Final Design: Plans, Specifications and Estimate 1,092 24 24 76 88 268 44 10 34 82 98 44 191 109 162,700 - - - - 162,700
General Sheets (5 sheets)36 8 8 16 4 4,540 4,540
Demolition Site Plan 26 2 4 16 4 3,180 3,180
Demolition Sections 26 2 4 16 4 3,180 3,180
Site Plan 38 2 4 8 20 4 4,840 4,840
Site Elevations/Sections 30 2 4 20 4 3,640 3,640
Mechanical Plan 48 2 4 8 30 4 5,990 5,990
Mechanical Sections 46 2 4 8 30 2 5,700 5,700
Mechanical Details (2 sheets)38 2 4 8 20 4 4,840 4,840
Connection Details 25 1 2 4 16 2 3,110 3,110
Typical Well Details 26 2 2 4 16 2 3,330 3,330
Disinfection Plan, Section and Details (2 sheets)60 2 12 16 26 4 7,650 7,650
Site Details 25 1 2 4 16 2 3,110 3,110
General Structural Sheets (2 sheets)6 2 2 2 1,000 1,000
Generator Pad Plan & Section 28 2 10 16 3,670 3,670
Well Shade Structure Plan and Sections 42 4 18 20 5,610 5,610
Typical Structural Details 18 2 8 8 2,440 2,440
Foundation and Wall Details 30 4 8 18 4,210 4,210
Roof Framing Details (2 sheets)28 4 8 16 3,960 3,960
Miscellaneous Structural Details 28 4 8 16 3,960 3,960
Electrical General Notes 4 1 3 650 650
Electrical Site Plan 36 4 32 5,200 5,200
Electrical Site and Power Plan (2 sheets)52 4 48 7,280 7,280
Instrumentation and Control Plan (2 sheets)76 4 24 48 14,240 14,240
Lighting and Grounding Plan 10 2 8 1,560 1,560
Single Line Diagram and Elevations 20 4 16 3,120 3,120
Conduit Schedule 28 4 16 8 4,800 4,800
Electrical Details 6 1 4 1 990 990
P&ID (3 sheets)44 4 16 24 8,160 8,160
Technical Specifications 88 8 20 8 4 12 4 16 16 14,540 14,540
Cost Estimate 50 2 4 4 16 2 8 2 4 4 4 7,430 7,430
Submittals 36 4 4 10 4 2 4 8 5,210 5,210
QA/QC 38 24 6 8 11,560 11,560
Task 2 Permitting 34 2 2 10 - 20 - - - - - - - - 5,000 - - - - 5,000
DDW Approval Assistance 34 2 2 10 20 5,000 5,000
Task 3 Bid Support 51 3 10 6 - 24 4 4 - - - - - - 7,930 - - - 70 8,000
Attend Pre-Bid Meeting 4 2 2 800 70 870
Respond to RFC and Prepare Addendum (1)21 1 4 12 2 2 3,100 3,100
Assist City in Evaluation of Bids 4 2 2 1,100 1,100
Prepare Conformed Drawings 22 2 4 12 2 2 2,930 2,930
Task 4 Construction Support 273 14 51 52 4 36 4 - 8 24 - 20 40 20 48,280 5,000 - - 720 54,000
Project Management (10 months)12 2 10 2,860 2,860
Construction Meetings (3)16 2 6 6 2 3,400 120 3,520
Submittal Reviews (50)138 4 16 30 20 4 16 4 32 12 22,240 22,240
Respond to Requests for Information (20)56 4 8 8 4 8 8 8 8 11,040 11,040
Down Well Video Survey 6 2 4 1,040 5,000 6,040
Start-up Assistance (16 hours)16 2 8 6 4,000 4,000
Record Drawings 29 1 4 4 16 4 3,700 600 4,300
Totals 1,765 57 130 198 148 444 64 18 44 112 98 70 245 137 0.00%271,930 5,000 - - 1,070 278,000
Task Pricing
TotalsSchedule
Work Days OffWork DaysTotal
Labor Hrs Subs Travel Mat'ls & Equip ODCs
Labor
Rate Esc.LaborSr Eng Designer 1Sr Project ManagerEngineer 2Sr CAD Designer 1Preliminary design, final design and construction phase services for the rehabilitation of an existing well.Total Price
Pricing by Resource
Principal in ChargeBolsa Chica Water Well Improvements
Sr Project ManagerEngineer 3Project Manager 1Project Engineer 1Engineer 2Engineer 2Sr CAD Designer 2Sr Project AdministratorPrice Proposal
Tetra Tech - Confidential and Proprietary Page 1 of 1 Printed 1/17/2020
Project Management Construction
Project Manager 1 $220.00 Construction Project Rep 1 $78.00
Project Manager 2 $260.00 Construction Project Rep 2 $85.00
Sr Project Manager $305.00 Sr Constr Project Rep 1 $100.00
Program Manager $330.00 Sr Constr Project Rep 2 $115.00
Principal in Charge $330.00 Construction Manager 1 $165.00
Construction Manager 2 $185.00
Engineers Construction Director $233.00
Engineering Technician $37.00
Engineer 1 $96.00 General & Administrative
Engineer 2 $115.00 Project Assistant 1 $67.00
Engineer 3 $130.00 Project Assistant 2 $75.00
Project Engineer 1 $150.00 Project Administrator $95.00
Project Engineer 2 $165.00 Sr Project Administrator $110.00
Sr Engineer 1 $170.00 Sr Graphic Artist $150.00
Sr Engineer 2 $175.00 Technical Writer 1 $97.00
Sr Engineer 3 $210.00 Technical Writer 2 $124.00
Principal Engineer $300.00 Sr Technical Writer $155.00
Planners Information Technology
Planner 1 $104.00 Systems Analyst / Programmer 1 $77.00
Planner 2 $115.00 Systems Analyst / Programmer 2 $115.00
Sr Planner 1 $125.00 Sr Sys Analyst / Programmer 1 $130.00
Sr Planner 2 $151.00 Sr Systems Analyst / Programmer 2 $196.00
Sr Planner 3 $175.00
Project Accounting
Designers & Technicians Project Analyst 1 $90.00
CAD Technician 1 $65.00 Project Analyst 2 $114.00
CAD Technician 2 $75.00 Sr Project Analyst $155.00
CAD Technician 3 $90.00
CAD Designer $100.00 Reimbursable In-House Costs:
Sr CAD Designer 1 $125.00 Photo Copies (B&W 8.5”x11”)$ 0.15/Each
Sr CAD Designer 2 $145.00 Photo Copies (B&W 11”x17”)$ 0.40/Each
CAD Director $150.00 Color Copies (up to 8.5"x11")$ 2.00/Each
Survey Tech 1 $50.00 Color Copies (to 11"x17")$ 3.00/Each
Compact Discs $10/each
Health & Safety Large format copies $0.40 S.F.
H&S Administrator $95.00
Sr H&S Administrator $115.00 Mileage-Company Vehicle $0.80/mile
H&S Manager $145.00 Mileage-POV $0.55/mile*
*current GSA POV mileage rate subject to change
All other direct costs, such as production, special photography, postage, delivery services, overnight mail,
printing and any other services performed by subconsultant will be billed at cost plus 15%.
2020
HOURLY CHARGE RATE AND EXPENSE REIMBURSEMENT SCHEDULE
NOTE: Rates subject to change annually.Exhibit A - 2020.xlsx
EXHIBIT B
TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS
1. This Agreement calls for services that, in whole or in part, constitute “public works”
as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the
California Labor Code (“Chapter 1”). Further, Consultant acknowledges that this
Agreement is subject to (a) Chapter 1 and (b) the rules and regulations established by
the Department of Industrial Relations (“DIR”) implementing such statutes. Therefore, as
to those Services that are “public works”, Consultant shall comply with and be bound by
all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full
herein.
2. California law requires the inclusion of specific Labor Code provisions in certain
contracts. The inclusion of such specific provisions below, whether or not required by
California law, does not alter the meaning or scope of Section 1 above.
3. Consultant shall be registered with the Department of Industrial Relations in
accordance with California Labor Code Section 1725.5, and has provided proof of
registration to City prior to the Effective Date of this Agreement. Consultant shall not
perform work with any subcontractor that is not registered with DIR pursuant to Section
1725.5. Consultant and subcontractors shall maintain their registration with the DIR in
effect throughout the duration of this Agreement. If Consultant or any subcontractor
ceases to be registered with DIR at any time during the duration of the project,
Consultant shall immediately notify City.
4. Pursuant to Labor Code Section 1771.4, Consultant’s Services are subject to
compliance monitoring and enforcement by DIR. Consultant shall post job site notices,
as prescribed by DIR regulations.
5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem
wages for each craft, classification, or type of worker needed to perform the Agreement
are on file at City Hall and will be made available to any interested party on request.
Consultant acknowledges receipt of a copy of the DIR determination of such prevailing
rate of per diem wages, and Consultant shall post such rates at each job site covered by
this Agreement.
6. Consultant shall comply with and be bound by the provisions of Labor Code Sections
1774 and 1775 concerning the payment of prevailing rates of wages to workers and the
penalties for failure to pay prevailing wages. Consultant shall, as a penalty to City, forfeit
$200.00 for each calendar day, or portion thereof, for each worker paid less than the
prevailing rates as determined by the DIR for the work or craft in which the worker is
employed for any public work done pursuant to this Agreement by Consultant or by any
subcontractor.
7. Consultant shall comply with and be bound by the provisions of Labor Code Section
1776, which requires Consultant and each subcontractor to: keep accurate payroll
records and verify such records in writing under penalty of perjury, as specified in
Section 1776; certify and make such payroll records available for inspection as provided
by Section 1776; and inform City of the location of the records.
8. Consultant shall comply with and be bound by the provisions of Labor Code Sections
1777.5, 1777.6 and 1777.7 and California Code of Regulations, Title 8, Section 200 et
seq. concerning the employment of apprentices on public works projects. Consultant
shall be responsible for compliance with these aforementioned Sections for all
apprenticeable occupations. Prior to commencing work under this Agreement,
Consultant shall provide City with a copy of the information submitted to any applicable
apprenticeship program. Within 60 days after concluding work pursuant to this
Agreement, Consultant and each of its subcontractors shall submit to City a verified
statement of the journeyman and apprentice hours performed under this Agreement.
9. Consultant shall not perform work with any Subcontractor that has been debarred or
suspended pursuant to California Labor Code Section 1777.1 or any other federal or
state law providing for the debarment of contractors from public works. Consultant and
subcontractors shall not be debarred or suspended throughout the duration of this
Contract pursuant to Labor Code Section 1777.1 or any other federal or state law
providing for the debarment of contractors from public works. If Consultant or any
subcontractor becomes debarred or suspended during the duration of the project,
Consultant shall immediately notify City.
10. Consultant acknowledges that eight hours labor constitutes a legal day’s work.
Consultant shall comply with and be bound by Labor Code Section 1810. Consultant
shall comply with and be bound by the provisions of Labor Code Section 1813
concerning penalties for workers who work excess hours. Consultant shall, as a penalty
to City, forfeit $25.00 for each worker employed in the performance of this Agreement by
Consultant or by any subcontractor for each calendar day during which such worker is
required or permitted to work more than eight hours in any one calendar day and 40
hours in any one calendar week in violation of the provisions of Division 2, Part 7,
Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code Section 1815, work
performed by employees of Consultant in excess of eight hours per day, and 40 hours
during any one week shall be permitted upon public work upon compensation for all
hours worked in excess of eight hours per day at not less than one and one-half times
the basic rate of pay.
11. California Labor Code Sections 1860 and 3700 provide that every employer will be
required to secure the payment of compensation to its employees. In accordance with
the provisions of California Labor Code Section 1861, Consultant hereby certifies as
follows:
“I am aware of the provisions of Section 3700 of the Labor Code which
require every employer to be insured against liability for workers’
compensation or to undertake self-insurance in accordance with the
provisions of that code, and I will comply with such provisions before
commencing the performance of the work of this contract.”
12. For every subcontractor who will perform work on the project, Consultant shall be
responsible for such subcontractor’s compliance with Chapter 1 and Labor Code
Sections 1860 and 3700, and Consultant shall include in the written contract between it
and each subcontractor a copy of those statutory provisions and a requirement that each
subcontractor shall comply with those statutory provisions. Consultant shall be required
to take all actions necessary to enforce such contractual provisions and ensure
subcontractor’s compliance, including without limitation, conducting a periodic review of
the certified payroll records of the subcontractor and upon becoming aware of the failure
of the subcontractor to pay his or her workers the specified prevailing rate of wages.
Consultant shall diligently take corrective action to halt or rectify any failure.
13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless
and defend (at Consultant’s expense with counsel reasonably acceptable to City) City, its
officials, officers, employees, agents and independent contractors serving in the role of
City officials, and volunteers from and against any demand or claim for damages,
compensation, fines, penalties or other amounts arising out of or incidental to any acts or
omissions listed above by any person or entity (including Consultant, its subcontractors,
and each of their officials, officers, employees and agents) in connection with any work
undertaken or in connection with the Agreement, including without limitation the payment
of all consequential damages, attorneys’ fees, and other related costs and expenses. All
duties of Consultant under this Section shall survive the termination of the Agreement.
Agenda Item G
AGENDA STAFF REPORT
DATE:February 24, 2020
TO:Honorable Mayor and City Council
THRU:Jill R. Ingram, City Manager
FROM:Patrick Gallegos, Assistant City Manager
SUBJECT:Approving Amendment No. 1 to the Professional Services
Agreement with Westberg + White, Inc., for Community
Pool Preliminary Design Services
________________________________________________________________
SUMMARY OF REQUEST:
That the City Council adopt Resolution 7007:
1. Approving Amendment No.1 to the Professional Services Agreement dated
September 8, 2014 between the City of Seal Beach and Westberg + White,
Inc. to increase Consultant’s compensation by $88,569 for a revised total
not-to-exceed contract amount of $327,499 for additional Community Pool
Preliminary Design Services; and,
2. Authorizing the City Manager to execute Amendment No.1.
BACKGROUND AND ANALYSIS:
In 2013, the City adopted the Parks and Community Services Master Plan that
provided recommendations to improve and expand recreational activities for
various parks throughout the City. The Master Plan also evaluated the program
need for a community pool.
On September 8, 2014, the City entered into an agreement with Westberg + White,
Inc. (W+W) to provide Community Pool public outreach and preliminary design
services. The public outreach effort defined the project’s vision and identified the
most compatible location that could provide the desired programming capabilities
while meeting current codes and requirements. A sub-parcel at the Naval
Weapons Station (NWS) adjacent to the intersection of Seal Beach Boulevard at
Adolfo Lopez Drive was found to be the most suitable. This sub-parcel is a federal
land “out-lease” where certain NWS negotiations and resequencing of design
services would be necessary to meet federal and environmental requirements.
Those items include:
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1. Geotechnical Investigation
2. Environmental Subsurface Investigation
3. Infiltration Testing
4. Navy Documentation/Communication
5. Topographic Survey
6. Archeological Monitoring Plan & Monitoring
7. Environmental Site Assessment
8. Expanded Cultural Resource Report
9. State Historic Preservation Officer (SHPO) Documentation
The existing W+W professional services agreement did not contemplate the
abovementioned, and these additional services are necessary to continue work on
the NWS site and meet the committed schedule. W+W submitted a cost proposal
in the not-to-exceed amount of $88,569, which would amend the total not-to-
exceed agreement to $327,499. It should be noted that these services are
necessary regardless of the size and scope of the Community Pool project.
ENVIRONMENTAL IMPACT:
This item is not subject to the California Environmental Quality Act (“CEQA”)
pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be
seen with certainty that approval of a professional services agreement will not have
a significant effect on the environment. Environmental impacts related to the
project construction will be assessed under a separate effort.
LEGAL ANALYSIS:
The City Attorney has reviewed and approved the amendment and resolution as
to form.
FINANCIAL IMPACT:
$300,000 has been allocated in the approved FY 2019-2020 Capital Improvement
Program budget CIP BG0904, of which an additional $88,569 will be utilized for
Amendment No. 1 to the Professional Services Agreement with Westberg + White,
Inc.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
MEASURE BB:
This item is not applicable to Measure BB, the Seal Beach Neighborhood and
Essential Services Protection Measure.
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RECOMMENDATION:
That the City Council adopt Resolution 7007:
1. Approving Amendment No.1 to the Professional Services Agreement dated
September 8, 2014 between the City of Seal Beach and Westberg + White,
Inc. to increase Consultant’s compensation by $88,569 for a revised total
not-to-exceed contract amount of $327,499 for additional Community Pool
Preliminary Design Services; and,
2. Authorizing the City Manager to execute Amendment No.1.
SUBMITTED BY: NOTED AND APPROVED:
Patrick Gallegos Jill R. Ingram
Patrick Gallegos, Assistant City
Manager
Jill R. Ingram, City Manager
ATTACHMENTS:
A. Resolution 7007
B. Westberg + White, Inc. Professional Services Agreement
C. Westberg + White, Inc. Amendment No. 1
RESOLUTION 7007
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING AND AUTHORIZING THE CITY MANAGER TO
EXECUTE AMENDMENT NO. 1 TO THE PROFESSIONAL
SERVICES AGREEMENT WITH WESTBERG + WHITE, INC. FOR
THE COMMUNITY POOL PROJECT PRELIMINARY DESIGN
SERVICES
WHEREAS, On September 8, 2014, the City Council approved a Professional
Services Agreement with Westberg + White, Inc. (W+W) in the amount of
$238,930 to provide public outreach and preliminary design services for the
Community Pool project (“Project”).
WHEREAS, the City desires to engage W+W to provide additional services to
support the preliminary design work for the Project.
WHEREAS, W+W provided a cost proposal to provide these additional services
in a not-to-exceed amount of $88,569.
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY
RESOLVE:
SECTION 1. The City Council hereby approves Amendment No. 1 dated
February 24, 2020 to the Professional Services Agreement dated September 8,
2014 between the City of Seal Beach and Westberg + White, Inc. to authorize
additional services to support the preliminary design work for the Project, and to
increase consultant’s compensation by $88,569 for such additional services, for a
revised total contract amount not to exceed $327,499, which such Amendment
No. 1 is attached hereto as Attachment 1 and incorporated herein by this
reference as though set forth in full.
SECTION 2. The City Council hereby authorizes the City Manager to execute the
Amendment.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 24th day of February, 2020 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
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Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7007 on file in the office of
the City Clerk, passed, approved, and adopted by the City Council at a regular
meeting held on the 24th day of February, 2020.
Gloria D. Harper, City Clerk
O S
PROFESSIONAL SERVICES AGREEMENT
Between
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City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
Westberg + White, Inc.
1775 Hancock St., Ste. 120
San Diego, CA 92110
619-542-1188
This Professional Service Agreement ("the Agreement") is made as of September 8,
2014 (the "Effective Date"), by and between Westberg + White, Inc. ("Consultant"), a
California Corporation, and the City of Seal Beach ("City"), a California charter city,
collectively, "the Parties").
RECITALS
A. City desires certain professional services.
B. Consultant represents that it is qualified and able to provide City with such
services.
NOW THEREFORE, in consideration of the Parties' performance of the
promises, covenants, and conditions stated herein, the Parties hereto agree as
follows.
AGREEMENT
1.0 Scope of Services
1.1. Consultant shall provide those services ("Services") set forth in the
attached Exhibit A, which is hereby incorporated by this reference. To the extent
that there is any conflict between Exhibit A and this Agreement, this Agreement
shall control.
1.2. Consultant shall perform all Services under this Agreement in
accordance with the standard of care generally exercised by like professionals
under similar circumstances and in a manner reasonably satisfactory to City.
1.3. In performing this Agreement, Consultant shall comply with all
applicable provisions of federal, state, and local law.
1.4. Consultant will not be compensated for any work performed not
specified in the Scope of Services unless the City authorizes such work in
advance and in writing. The City Manger may authorize extra work to fund
unforeseen conditions up to $28,850. Payment for additional work in excess of
this amount requires prior City Council authorization.
2.0 Term
This term of this Agreement shall commence as of the Effective Date and shall
continue until all tasks identified in the scope of service are completed or unless
previously terminated as provided by this Agreement.
3.0 Consultant's Compensation
City will pay Consultant in accordance with the hourly rates shown on the fee
schedule set forth in Exhibit B for Services but in no event will the City pay more
than $238,930.00. Any additional work authorized by the City pursuant to Section
1.4 will be compensated in accordance with the fee schedule set forth in Exhibit
B.
2 of 9
4.0 Method of Payment
4.1. Consultant shall submit to City monthly invoices for all services
rendered pursuant to this Agreement. Such invoices shall be submitted within 15
days of the end of the month during which the services were rendered and shall
describe in detail the services rendered during the period, the days worked,
number of hours worked, the hourly rates charged, and the services performed
for each day in the period. City will pay Consultant within 30 days of receiving
Consultant's invoice. City will not withhold any applicable federal or state payroll
and other required taxes, or other authorized deductions from payments made to
Consultant.
4.2. Upon 24-hour notice from City, Consultant shall allow City or City's
agents or representatives to inspect at Consultant's offices during reasonable
business hours all records, invoices, time cards, cost control sheets and other
records maintained by Consultant in connection with this Agreement. City's
rights under this Section 4.2 shall survive for two years following the termination
of this Agreement.
5.0 Termination
5.1. This Agreement may be terminated by City, without cause, or by
Consultant based on reasonable cause, upon giving the other party written notice
thereof not less than 30 days prior to the date of termination.
5.2. This Agreement may be terminated by City upon 10 days' notice to
Consultant if Consultant fails to provide satisfactory evidence of renewal or
replacement of comprehensive general liability insurance as required by this
Agreement at least 20 days before the expiration date of the previous policy.
6.0 Party Representatives
6.1. The City Manager is the City's representative for purposes of this
Agreement.
6.2. Frisco White is the Consultant's primary representative for
purposes of this Agreement.
7.0 Notices
7.1. All notices permitted or required under this Agreement shall be
deemed made when personally delivered or when mailed 48 hours after deposit
in the United States Mail, first class postage prepaid and addressed to the party
at the following addresses:
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To City: City of Seal Beach
211-8th Street
Seal Beach, California 90740
Attn: City Manager
To Consultant:Westberg + White, Inc.
1775 Hancock St., Ste. 120
San Diego, CA 92110
Attn: Frisco White
7.2. Actual notice shall be deemed adequate notice on the date actual
notice occurred, regardless of the method of service.
8.0 Independent Contractor
8.1. Consultant is an independent contractor and not an employee of
the City. All services provided pursuant to this Agreement shall be performed by
Consultant or under its supervision. Consultant will determine the means,
methods, and details of performing the services. Any additional personnel
performing services under this Agreement on behalf of Consultant shall also not
be employees of City and shall at all time be under Consultant's exclusive
direction and control. Consultant shall pay all wages, salaries, and other
amounts due such personnel in connection with their performance of services
under this Agreement and as required by law. Consultant shall be responsible
for all reports and obligations respecting such additional personnel, including, but
not limited to: social security taxes, income tax withholding, unemployment
insurance, disability insurance, and workers' compensation insurance.
8.2. Consultant shall indemnify and hold harmless City and its elected
officials, officers, employees, servants, designated volunteers, and agents
serving as independent contractors in the role of City officials, from any and all
liability, damages, claims, costs and expenses of any nature to the extent arising
from Consultant's personnel practices. City shall have the right to offset against
the amount of any fees due to Consultant under this Agreement any amount due
to City from Consultant as a result of Consultant's failure to promptly pay to City
any reimbursement or indemnification arising under this Section.
9.0 Subcontractors
No portion of this Agreement shall be subcontracted without the prior written
approval of the City. Consultant is fully responsible to City for the performance of
any and all subcontractors.
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10.0 Assignment
Consultant shall not assign or transfer any interest in this Agreement whether by
assignment or novation, without the prior written consent of City. Any purported
assignment without such consent shall be void and without effect.
11.0 Insurance
11.1. Consultant shall not commence work under this Agreement until it
has provided evidence satisfactory to the City that Consultant has secured all
insurance required under this Section. Consultant shall furnish City with original
certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the City. The certificates and endorsements
for each insurance policy shall be signed by a person authorized by that insurer
to bind coverage on its behalf, and shall be on forms provided by the City if
requested. All certificates and endorsements shall be received and approved by
the City before work commences. The City reserves the right to require
complete, certified copies of all required insurance policies, at any time.
11.2. Consultant shall, at its expense, procure and maintain for the
duration of the Agreement, insurance against claims for injuries to persons or
damages to property that may arise from or in connection with the performance
of this Agreement. Insurance is to be placed with insurers with a current A.M.
Best's rating no less than A:VIII, licensed to do business in California, and
satisfactory to the City. Coverage shall be at least as broad as the latest version
of the following: (1) General Liability: Insurance Services Office Commercial
General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code
1 (any auto); and, if required by the City, (3) Professional Liability. Consultant
shall maintain limits no less than: (1) General Liability: $2,000,000 per
occurrence for bodily injury, personal injury and property damage and if
Commercial General Liability Insurance or other form with a general aggregate
limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required
occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury
and property damage; and (3) Professional Liability: $1,000,000 per
claim/aggregate.
11.3. The insurance policies shall contain the following provisions, or
Consultant shall provide endorsements on forms supplied or approved by the
City to state: (1) coverage shall not be suspended, voided, reduced or canceled
except after 30 days prior written notice by certified mail, return receipt
requested, has been given to the City; (2) any failure to comply with reporting or
other provisions of the policies, including breaches of warranties, shall not affect
coverage provided to the City, its directors, officials, officers, (3) coverage shall
be primary insurance as respects the City, its directors, officials, officers,
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employees, agents and volunteers, or if excess, shall stand in an unbroken chain
of coverage excess of the Consultant's scheduled underlying coverage and that
any insurance or self-insurance maintained by the City, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant's
insurance and shall not be called upon to contribute with it; (4) for general liability
insurance, that the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the services or
operations performed by or on behalf of the Consultant, including materials, parts
or equipment furnished in connection with such work; and (5) for automobile
liability, that the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the ownership,
operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Consultant or for which the Consultant is responsible.
11.4. All insurance required by this Section shall contain standard
separation of insureds provisions and shall not contain any special limitations on
the scope of protection afforded to the City, its directors, officials, officers,
employees, agents, and volunteers.
11.5. Any deductibles or self-insured retentions shall be declared to and
approved by the City. Consultant guarantees that, at the option of the City,
either: (1) the insurer shall reduce or eliminate such deductibles or self-insured
retentions as respects the City, its directors, officials, officers, employees,
agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing
payment of losses and related investigation costs, claims and administrative and
defense expenses.
12.0 Indemnification, Hold Harmless, and Duty to Defend
Consultant shall defend, indemnify, and hold the City, its officials, officers,
employees, volunteers and agents serving as independent contractors in the role
of city officials (collectively "Indemnitees") free and harmless from any and all
claims, demands, causes of action, costs, expenses, liability, loss, damage or
injury, in law or equity, to property or persons, including wrongful death, in any
manner arising out of or incident to any acts or omissions of Consultant, its
employees, or its agents in connection with the performance of this Agreement,
including without limitation the payment of all consequential damages and
attorneys' fees and other related costs and expenses, except for such loss or
damage arising from the sole negligence or willful misconduct of the City. With
respect to any and all such aforesaid suits, actions, or other legal proceedings of
every kind that may be brought or instituted against Indemnitees, Consultant
shall defend Indemnitees, at Consultant's own cost, expense, and risk, and shall
pay and satisfy any judgment, award, or decree that may be rendered against
Indemnitees. Consultant shall reimburse City and its directors, officials, officers,
employees, agents and/or volunteers, for any and all legal expenses and costs
incurred by each of them in connection therewith or in enforcing the indemnity
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herein provided. Consultant's obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by Consultant, the City, its directors,
officials, officers, employees, agents or volunteers. All duties of Consultant
under this Section shall survive termination of this Agreement.
13.0 Equal Opportunity
Consultant affirmatively represents that it is an equal opportunity employer.
Consultant shall not discriminate against any subcontractor, employee, or
applicant for employment because of race, religion, color, national origin,
handicap, ancestry, sex, sexual orientation, or age. Such non-discrimination
includes, but is not limited to, all activities related to initial employment,
upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or
termination.
14.0 Labor Certification
By its signature hereunder, Consultant certifies that it is aware of the provisions
of Section 3700 of the California Labor Code that require every employer to be
insured against liability for Workers' Compensation or to undertake self-insurance
in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
15.0 Entire Agreement
This Agreement contains the entire agreement of the parties with respect to the
subject matter hereof, and supersedes all prior negotiations, understandings, or
agreements. This Agreement may only be modified by a writing signed by both
parties.
16.0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not
void or affect the validity of the other provisions of this Agreement.
17.0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws
of the State of California.
18.0 No Third Party Rights
No third party shall be deemed to have any rights hereunder against either party
as a result of this Agreement.
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19.0 Waiver
No waiver of any default shall constitute a waiver of any other default or breach,
whether of the same or other covenant or condition. No waiver, benefit, privilege,
or service voluntarily given or performed by a party shall give the other party any
contractual rights by custom, estoppel, or otherwise.
20.0 Prohibited Interests; Conflict of Interest
20.1. Consultant covenants that it presently has no interest and shall not
acquire any interest, direct or indirect, which may be affected by the Services, or
which would conflict in any manner with the performance of the Services.
Consultant further covenants that, in performance of this Agreement, no person
having any such interest shall be employed by it. Furthermore, Consultant shall
avoid the appearance of having any interest, which would conflict in any manner
with the performance of the Services. Consultant shall not accept any
employment or representation during the term of this Agreement which is or may
likely make Consultant "financially interested" (as provided in California
Government Code §§1090 and 87100) in any decision made by City on any
matter in connection with which Consultant has been retained.
20.2. Consultant further warrants and maintains that it has not employed
or retained any person or entity, other than a bona fide employee working
exclusively for Consultant, to solicit or obtain this Agreement. Nor has
Consultant paid or agreed to pay any person or entity, other than a bona fide
employee working exclusively for Consultant, any fee, commission, gift,
percentage, or any other consideration contingent upon the execution of this
Agreement. Upon any breach or violation of this warranty, City shall have the
right, at its sole and absolute discretion, to terminate this Agreement without
further liability, or to deduct from any sums payable to Consultant hereunder the
full amount or value of any such fee, commission, percentage or gift.
20.3. Consultant warrants and maintains that it has no knowledge that
any officer or employee of City has any interest, whether contractual, non-
contractual, financial, proprietary, or otherwise, in this transaction or in the
business of Consultant, and that if any such interest comes to the knowledge of
Consultant at any time during the term of this Agreement, Consultant shall
immediately make a complete, written disclosure of such interest to City, even if
such interest would not be deemed a prohibited "conflict of interest" under
applicable laws as described in this subsection.
21.0 Attorneys' Fees
If either party commences an action against the other party, legal, administrative
or otherwise, arising out of or in connection with this Agreement, the prevailing
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party in such litigation shall be entitled to have and recover from the losing party
all of its attorneys' fees and other costs incurred in connection therewith.
22.0 Exhibits
All exhibits referenced in this Agreement are hereby incorporated into the
Agreement as if set forth in full herein. In the event of any material discrepancy
between the terms of any exhibit so incorporated and the terms of this
Agreement, the terms of this Agreement shall control.
23.0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or
she is duly authorized to execute this Agreement on behalf of said Party and that
by his or her execution, the Consultant is formally bound to the provisions of this
Agreement.
IN WITNESS WHEREOF, the Parties hereto, through their respective authorized
representatives have executed this Agreement as of the date and year first
above written.
CITY OF SEAL BEACH CONS J TANT•
By: • ' : el • l I,I1L.By:1l11J
1,
Srlistip
R. Ingram, City 2:ger
Name: Frisco White
Attest: Its: President
By: it LI By:
inda Devine, City Clerk
Name:
Approved as to F rrr : Its:
By: is
Stev-n L. Flower, City Attorney
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City of Seal Beach EXHIBIT A
SCOPE OF WORK NARRATIVE
Task 1—Public Participation Process and Analysis
The City of Seal Beach has stated that they are seeking "creative methods and tools to successfully
accomplish a comprehensive community wide outreach program to obtain participation from residents in
establishing the ranking of multiple sites and determining if a 30 or 50 meter sized pool is most desirable."
Our Team, with Community Change Partners leading this phase will begin by creating a demographic
profile of a community surrounding a potential project which we have already completed and has been
included in this proposal. Information was garnered from census data as well as from site visits. To begin
the community outreach process, elected officials, key stakeholders, community and business groups,
non-profits, schools and other community institutions are identified and a database compiled.
Interfacing with the City of Seal Beach elected representatives and City departments and staff will be an
important component of outreach efforts to understand their needs and desires for the project at the
outset and keep them in the communication loop as the community engagement process proceeds.
To engage the entire community of Seal Beach and pool users to identify locations for a new aquatics
center and then to give feedback and input on design features, we would do initial PR, media and
outreach about the effort (developing a name for the campaign/effort) and create a fun kick-off event for
the community. The kick-off event would be similar to a community fair with food and fun activities to
provide feedback on locations and desired features for the new aquatics facility. As part of the event, we
would create a citywide scavenger hunt to have people go to various parts of the city to identify sites and
get points which can be redeemed for prizes. We will prepare site recommendation forms to be used and
provide cameras to take pictures of sites. After the event, we will have a window of time for people to
submit additional sites for consideration. We will also do our own reconnaissance and work with local real
estate agents and city planning and recreation staff to identify appropriate sites.
Once we have compiled a list of appropriate sites and the feasibility analysis phase has begun, we will
begin engaging the community around the various sites. We will conduct individual meetings with key
stakeholders, small group meetings and go door to door to talk with those immediately adjacent to the
sites to understand their needs and concerns. We feel that this develops mutual respect and trust with
key stakeholders that will ensure a smoother process in the long run. At this stage we will be talking with
people about site issues and design features desired. We will also conduct outreach at the existing pool
facility to understand the needs and concerns of current pool users and seek input from potential users,
such as those interested in water polo and competition swim meets to understand their requirements.
We will create a consensus building decision process to decide on a site once the feasibility analysis is
completed and pros and cons of each site enumerated. We will use on-line polling tools for people to rank
their preference of sites. While the site selection process is occurring, we will provide the architect with
input from the community on design features to begin creating conceptual ideas for the aquatics center.
Once a site is selected, we will work closely with the surrounding neighborhood to address any concerns
they have involving them in the process to gain buy-in.
Having effectively engaged the greater community through small group or individual meetings, workshops
and door-to-door outreach, we are better able to prepare a design that incorporates stakeholder needs
and concerns from the outset, allowing for a more respectful dialogue, more being accomplished at
meetings and workshops and more meaningful input being provided.
A write-up is completed for all meetings and outreach efforts, providing the client, architect and planners
with information that will be needed to design or modify the project. There will be a back and forth iterative
process with the design team and stakeholders. Formats can include public meetings, workshops, on-line
public meeting tools, focus groups, and surveys.
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Ongoing communication with the surrounding neighborhood(s) and interested stakeholders is critical
throughout the process, from conceptualization to project completion. We foresee using various means to
communicate with the Seal Beach community which could include: emailing updates, creating a
Facebook page, creating a website, and using MindMixer, an on-line public engagement tool. However,
even when providing electronic updates, in person update meetings and phone calls are very effective in
creating a personal connection that people appreciate. We will work with the schools and libraries to help
people provide input who do not have access to a computer.
In addition, we believe that through an engagement process for a community facilities project, such as
this one, there is an opportunity to create a sense of community not found in all neighborhoods, which will
enhance the project and its constituents, customers and stakeholders for the long-term. This can be
accomplished through special activities and events specifically designed to bring people together around
the project in a fun and relevant way such as described for the kick-off event. We have broad experience
in developing ideas for activities and events and implementing them.
Task 2— Site Selection Recommendation
We understand that we will be required use our professional expertise and analysis to recommend the
most practical site to locate a multi-generational community aquatic center within the City limits based
upon location, costs and design.
Selecting the most appropriate and practical site is an important and vital consideration for this project.
The location, size, shape, orientation, access, views, surrounding neighbors, geology, water table,
hazardous material and drainage among others will greatly influence the site selection and affect the
program master plan. Our approach is to develop the community aquatic program and master plan and
select the site based upon the interrelationships of the program that was developed through the public
participation process.
Once a preliminary program is developed that conceptually illustrates the present and future needs of the
community aquatic center we should begin the site selection process. Because the perfect site may not
be able to be located,that meets all the criteria of the program, we'll need to set priorities for the site
selection and be prepared to make compromises. After walking the potential sites with the site selection
committee, we should consider selecting three (3) sites and ranking the sites based on the Feasibility
Analysis.
Successful real estate feasibility analysis must be based on community input and the results of the public
participation process to define the program and relevant factors to consider when ranking sites. All
feasibility starts with "highest and best use" for each property — uses that are physically feasible, legally
permissible, and financially optimal — but selecting the best site for a community recreational amenity has
to consider a wide range of additional measures including accessibility, impacts on nearby uses, and the
ability to mitigate those impacts.
James Suhr & Associates (JSA) will prepare a feasibility study for the proposed Seal Beach Community
Aquatics Center, as part of the Westberg +White team, which builds on the community outreach results
to be generated by team member Community Change Partners. Among the many factors to be used to
rank potential sites, community suitability and community accessibility will be heavily weighted so that the
process does not generate unviable site selections.
Jim Suhr, principal of JSA, holds a California broker's license, and will work with City staff closely on the
selection of the recommended site(s) and negotiation with property owners for site acquisitions. Suhr has
30 years of experience as a developer and consultant in Southern California real estate markets, with
particular expertise on site due diligence, feasibility, and acquisitions.
As noted in the RFP, the real estate market in Seal Beach is very tight — few sites are available at any
point in time, and huge portions of the City are subject to significant constraints (Naval Weapons Station,
National Wildlife Refuge, Leisure World) placing much of the jurisdiction out of reach. Not withstanding
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the difficulty, we should keep the Navy and Wildlife Refuge at the discussion table. JSA will work with
City staff and the local brokerage community to identify any/all available properties, as well as using
adaptive reuse and redevelopment creativity to identify additional potential sites that are off-market. City
staff and the selected team will need to explore shared-use alternatives with existing facilities to create as
large a list of potential sites for consideration.
Potential sites for the Seal Beach Community Aquatics Center would be evaluated using the following
preliminary matrix/weighting system. Each site will be scored using a 0-5 scale for each factor, other than
estimated cost categories, and then each category subtotal score will be adjusted by the weighting factor
shown below to arrive at the overall weighted score for each candidate property.
Site Name/Address:Site 11 JSite 21 Site 31 Le_ml
Physical Feasibility(20%of total)
Site size adequate for use
Site existing improvements
Existing/new parking adequate for use
Environmental condition for use
Soils/Water Table condition for use
Permitted use by existing zoning
Ability to satisfy all code req'ts
Cornanmity Suitability(50%of total)
Accessibility—pedestrian/bike
Accessibility—transit
Accessibility—private vehicle
No impacts on adjoining uses
Adjoining uses favor Aquatics Center
Financial Feasibility(30%of total)
Estimated acquisition cost(relative to lowest
Estimated site prep cost(relative to lowest$)
Overall Weighted Score=
This evaluation process will result in a ranked list of potential Aquatics Center sites, factoring in the
community outreach and stakeholder input responses gathered by the team, which will serve to guide
City staff and JSA in subsequent real estate negotiations.
Task 3—Site information and Analysis
We understand that we will be expected to provide a detailed analysis of the site being recommended.
This analysis will include but not limited to the following features: acreage, surrounding land uses, soil
types, environmental issues, historic uses, floodplains, drainage and zoning.
The process that will be used for our analysis is illustrated in Task 2 - Site Selection Recommendation.
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Seal Beach has many amenities including 25 parks or community facilities, including the beach. The
existing aquatics center is located on the campus of McGaugh Elementary School. The City runs a robust
aquatics program, which includes lap swimming, aquasize classes, swim team, recreational swim, swim
lessons, and a summer swim program. At the current site, the swim team cannot host competitions and
the pool cannot support a water polo program which is desired by many.
There are two pools currently: the large pool with 6 lanes for lap swimming and an area called "the
widths" for people to lounge and water walk. There is an adjacent small shallow pool that does not get
much use most of the year. It is used during the summer months for recreational swimming or for games
as a reward after swim lessons. During the summer months, the pool complex can be rented out for pool
parties. Pool users include the local residential community in Seal Beach and surrounding areas of all
ages and people who work in Seal Beach. There are only a few people that come from Leisure World
since they have multiple pools within their complex.
In getting a preliminary sense of the interests from those currently using the pool, we learned that people
would like a pool that will allow for competition swim meets and water polo matches. The people we
spoke with said that a fountain area or splash pad would be fun for young kids and get more use than the
shallow pool. Current pool users would like to see a 50 meter pool that would allow for 8 lanes for lap
swimming. When shown the photo of Splash! La Mirada Regional Aquatics Center, people were very
excited with the prospect of having a similar facility in Seal Beach. The people we spoke with thought that
a larger pool complex would be quickly filled with activities and become well-used. They also thought that
such a destination facility would generate more income from pool parties, activities and usage fees to
help maintain the multi-generational facility.
We heard from stakeholders that a few years ago the City considered locating the new aquatics center at
the vacant site along First Street north of Central Avenue adjacent to Marina Park and Community
Center. We were told that the project was shelved because the Marina neighborhood did not want a
larger pool facility in that location fearing noise and traffic that would lower the value of their properties.
We also understand that this site is contaminated and would have to be cleaned or sealed if the aquatics
center were to be located there. Given that this site is one of the few vacant properties of a substantial
size in the city, the site will most likely be analyzed in the feasibility study. The issues previously raised by
the Marina neighborhood will have to be addressed in the public outreach and engagement process and
environmental review process.
BRG Consulting, Inc. (BRG) will assist the Team during the identification of alternative sites by providing
an ongoing Environmental Opportunities and Constraints Analysis of the potential candidate sites and
surrounding areas. BRG will focus on opportunities to maximize existing environmental values of the
project areas and avoid potential adverse impacts on significant environmental and community resources
at the candidate sites. A guide to this environmental evaluation will be the Mandatory Significance
Findings in Section 15065 of the State CEQA Guidelines. One of the goals of this environmental planning
component of the site selection process is to avoid significant environmental impacts and thereby simplify
the CEQA document required for the project.
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We will identify the community's programming and aquatic center needs for the site that was developed in
Task 1, Task 2 and Task 3.
In addition to the aquatic center's physical analysis we will also provide a Financial Impact Study that will
be developed as an opinion of the facility financial performance and an opinion of suggested operations
for the planned facility.The study will include the following elements:
1. Economic Impact:
This part of the study will incorporate an analysis of the economic impact of the facility to the
City. In this segment of the study the following will be researched, analyzed and reported:
a. Demographic research will be completed to appropriately evaluate the
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proposed facility.-Analysis will include population and age distribution,
income,weather analysis, and local economic considerations that could
affect the project's viability.
b.An opinion of probable expenses will be developed and it will include demands
on labor, contract services, supplies, utilities, maintenance, and funds needed
for future repair.
c.An opinion of revenue will be developed. Market area demographics for
population, age, and income will be analyzed to understand the economics of
the region and the level of discretionary income that may be used for leisure and
competitive aquatic activity.
d. Revenue projections will be derived from the likely market penetration, special
user groups through creative programming, and the potential of income.The
analysis may include a study of the influence of the tourism. This analysis will
incorporate an opinion of attendance and offer recommendations of a
competitive fee structure for all facilities.
2. Operational Impact
This part of the study incorporates an analysis of the operational impact of the facility to the
City. In this segment of the study the following will be researched, analyzed and reported:
a.A facility management outline will be completed that includes a facility
operating schedule, facility capacity limits, organization chart,job descriptions,
and a wage structure for all employees.
b. Area aquatic user groups will be identified to determine organizations that will
contribute to filling available capacity in the facility.
c.A marketing program will be prepared to aid in creatively promoting the facility
once the project is completed.
Tack 5—Aquatic Center Recommendation
We will recommend to the City the most feasible site based upon the public participation's desire,
location, costs, facility needs and design. Our recommendation will account for the program needs that
were developed through public participation along with necessary support facilities.
This recommendation, which is the product of our analysis of Tasks 1 through 4 will include:
1. Preparation and submittal of an outline of the Design Program of spaces and features for
the proposed aquatic center describing the natatorium, pool size, shape and support spaces
based on preliminary discussions and meetings noted above.
2. Based on the meetings and committee's review of the outline program, develop with the you
a Design Program for the building with recommendations on the size and shape of the pool(s)
as well as architectural and engineering features of the building and support spaces.
3. Make a final presentation to the project committee outlining the methods and results of the
study.
Task 6—Conceptual Plans and Cost Analvsig
We will provide conceptual site plan, plans and elevations for the aquatic center that incorporates the
needs of the entire community and the program as developed and prioritized during the public
participation and Tasks 1 through 5. The conceptual plans that we will present will be the Vision,
Translation and Implementation of the Program balancing the needs as follows:
A. Based on the agreed upon program, we will prepare three concepts. Typically these concepts
consist of an ideal, preferred and minimum acceptable. The ideal concept includes areas of
programming without taking into account budget considerations. The preferred facility
supports the design program with costs to meet the proposed budget. The minimum
acceptable concept is a facility that will be considered if the project experiences limited
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funding. Through our experience site planning a number of these types of facilities,Westberg +
White and Counsilman-Hunsaker have learned that it is important to provide separate areas
for the competitive swim users and recreational users. The competitive users will require a
large amount of deck space for staging, as there are many swimmers but few in the water at
the same time.The recreational users are best served by thinking of the facility in three
areas with corresponding water depths:
Tots-Characterized by 0"to 12" Deep Water
Family-Characterized by 0"to 3'-6" Deep Water
Teen/Adult- Characterized by 3'-6"to 12'-6" Deep Water
As an example at Splash! at La Mirada Aquatic Park,we creatively separated the competitive
and recreational users. Each designated user had their own bathhouse and separate and
independent heating and filtration systems. For instance during the cooler periods of the year
the less used recreational pools' mechanical and plumbing systems and bathhouse were shut
down to save energy and maintenance costs. The competitive side remained usable and
operational.
B. We will provide a conceptual plan of each building. The purpose of the plans will be to
Illustrate ways to organize the spaces in a functional arrangement and to confirm that the
Building footprint will contain the areas proposed in the Design Program. For the Bathhouse
facility, the location, size, and layout will be developed as an integral part of the overall site
plan. Over the years and through multiple projects we know that these facilities need to be
functional,well-ventilated and lighted and low maintenance while meeting the basic code
requirements and operational requirements of the facility. As a support facility to the aquatic
center we carefully select the structural systems and finishes that are attractive yet economical
so that most of the budget can be used for the pool. Since the public does not come to a
family aquatic center or waterpark for the bathhouse. This concept of Recreation First! is a
consistent theme throughout our work.
C. As an integral decision-making tool, we will prepare a detailed Opinion of Probable
Construction Cost for the new facility. Recent project bid figures of similar projects will be used
as well as national estimating guides and local cost adjustment factors. The hard construction
cost figures will be supplemented by a development cost factor, which will include such "soft"
costs as professional fees, survey, geotechnical report, document reproduction, advertisement
for bids and all anticipated expenses related to the administration of the project. The sum of
these two cost figures will be the total project cost so that you will have a comprehensive
overview before making an informed decision about the project
By making recreation and operations the focus we have successfully stayed within budget, minimized
staffing requirements, and made every possible dollar available for outdoor family aquatic recreation.
Task 7—Environmental Preparation
It is likely that the new Community Aquatics Center will qualify for preparation of a Negative Declaration
ND) or Mitigated Negative Declaration (MND), which will focus on only the potential significant
environmental impacts of the project(CEQA Guidelines Article 6). With BRG's participation during the site
selection process (Task 3) and the active community outreach program (Task 1), it is anticipated that
potential significant impacts will be avoided to the maximum extent possible during the planning and site
selection phase, thereby improving the likelihood that an ND or MND can be prepared for the project. The
ND/MND document needs to be circulated for a 21-day public review, compared to 45 days for an EIR.
The ND/MND will be based on the Initial Study Checklist form found in Appendix G of the State CEQA
Guidelines. As described in Task 3, our Environmental Opportunities and Constraints review of the
alternative sites will focus on potential environmental issues relative to the Mandatory Significance
Findings in Section 15065 of the CEQA Guidelines.
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If the Initial Study for the proposed alternative identifies any significant adverse impacts that cannot be
fully mitigated or avoided, then an Environmental Impact Report (EIR) will need to be prepared. The EIR
will be prepared in accordance with the requirements of CEQA(Public Resources Code Section 21000, et
seq.), the State CEQA Guidelines (California Code of Regulations Section 15000 et seq.), and the City's
Guidelines for Compliance with CEQA.
The following provides a detailed scope of work for preparation of the EIR:
1. Project Initiation. NOP and Data Collection;
Our first task to initiate preparation of the EIR is for the Team to meet with City staff to confirm the project
description and scope of analysis for the EIR. The first task to start the public timeline for the EIR will be
preparation and publication of the Notice of Preparation (NOP).
2. Project Descriotion:
CEQA requires that the EIR description of the project shall contain certain information but should not
supply extensive detail beyond that needed for evaluation and review of the environmental impact.
BRG's project description will provide the following required elements: 1) the precise location and
boundaries of the Proposed Project shall be shown on a detailed local map and on a regional map, using
the Base Maps prepared for the site selection study; 2) a statement of objectives sought for the Proposed
Project; 3) a general description of the project's technical, economic, and environmental characteristics,
considering the principal engineering plans, if any, and supporting public service facilities; and, 4) a
description of the intended uses of the EIR including a list of the agencies that are expected to use the
document in their decision making; a list of permits and other approvals required to implement the project
and a list of related environmental review and consultation requirements required by federal, state, or
local laws, regulations, or policies. The project description will also list the City decisions subject to
CEQA in the order in which they will occur.
For this reason, the project description can be a living document initially, incorporating additional detail as
it is developed. Ultimately, the project description must become a finite, stable document for the
environmental analysis to be prepared and reported in the First and Subsequent Screencheck Draft and
Final EIRs.
3. Project Alternatives:
Properly defining the project objectives is a critical component of any EIR because CEQA requires that an
EIR shall describe a range of reasonable alternatives to the project, or to the location of the project, which
could feasibly attain most of the objectives of the project, but would avoid or substantially lessen any of
the significant effects of the project.
Identification of project objectives would be one of the first tasks undertaken. Based on those objectives,
an initial set of alternatives would be prepared. We would also work with City staff to determine the level
of detail for project description information and environmental analysis that would be prepared for the
alternatives.
We anticipate identifying an initial set of alternatives based on City staff and the Team's knowledge of the
project and site. Such alternatives would be reported and analyzed in the First Screencheck Draft EIR.
CEQA Alternatives cannot be fully defined until the environmental analysis is initially drafted so that City
staff and the BRG Team understand the environmental impacts that rise to a level of significance. City
review of the First Screencheck Draft EIR, we would work with City staff and Team to identify any
additional alternatives that might need to be considered in the EIR based on the detailed analysis
presented in the First Screencheck Draft EIR. Such alternatives would be developed and reported in the
Second Screencheck Draft EIR and all subsequent EIR submittals. For the purpose of this proposal, we
have assumed the EIR will analyze the Proposed Project, two project alternatives, as well as the No-
Project Alternative.
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4 Preparation of Technical Studies;
BRG specializes in the preparation of environmental documentation for compliance with the requirements
of CEQA. For over thirty years,the firm has successfully managed the preparation of technical studies by
others that support the CEQA documents we prepare. It may be appropriate to develop specific technical
studies, depending on the environmental issues associated with the Proposed Project. Our principals and
project managers review every technical document we receive, including the appendices to the technical
studies.
5. First Screencheck Draft EIR:
BRG will prepare an EIR for the Proposed Project. The EIR and associated technical studies will
assemble all data, originate new studies where necessary, and provide an assessment of the probable
direct and indirect, and short- and long-term cumulative impacts of the Proposed Project. The Draft EIR
will provide an evaluation of feasible mitigation measures, which could be carried out to reduce or
eliminate significant adverse impacts of the Proposed Project. One of our initial tasks will be to confirm
overall document format with City staff.
The document will include the basis of analysis, a description of the relevant existing conditions,
thresholds of significance, impacts, level of significance prior to mitigation, recommended mitigation
measures to substantially reduce or avoid significant impacts, an analysis of the level of significance after
mitigation measures are applied, and evaluation of the project alternatives. The discussion of mitigation
measures will provide the background for the Candidate Findings under CEQA Guidelines§15091(a).
Environmental Issues to be Addressed in EIR
The following environmental issues will be addressed in the EIR: air quality, biological resources,
climate change/greenhouse gas emissions/sea level rise, energy, geology and soils, hazards
and hazardous materials, hydrology and water quality, land use and planning, noise, public
services, transportation/traffic/parking, utilities and service systems, and cumulative impacts.
We understand that some environmental issues may be added based on responses received
during the public scoping and Notice of Preparation review process. The following section
summarizes BRG's proposed approach to the environmental issues to be addressed in the EIR.
Cumulative Impacts
The cumulative impacts associated with the Proposed Project will be identified and assessed.
Our approach would be to utilize the project list approach provided by CEQA. On a resource-by
resource basis, we would identify a study area within which cumulative impacts might be
expected. We would work with City staff to identify all of the potential past, present, and
reasonably foreseeable future projects that should be considered in the Cumulative Impacts
analysis.
We also will coordinate as necessary with the City, the Navy, and the resources agencies that
may provide the necessary cumulative project information.We will provide a map showing the
cumulative impact study area and the location of each project, a brief description of each project,
and a summary of environmental effects for each project organized by each environmental
resource that may be impacted.We would then provide analysis and discussion as to any
significant cumulative impacts. Mitigation would be identified if necessary.
Other Required Considerations
This section will discuss growth inducement, significant irreversible environmental changes, and
effects found not to be significant.
Quality Assurance/Quality Control
BRG will implement its rigorous Quality Assurance/Quality Control (QA/QC) procedures in
reviewing the First Screencheck Draft EIR(and subsequent submittals as well), and related
technical reports that will be included as appendices to the EIR document. In addition to an
independent QA/QC review by our Principal Environmental Planner, BRG will assure that
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all deliverables undergo a Project Management review. BRG is dedicated to delivering high
quality deliverables that have been thoroughly reviewed prior to submittal.
R.Sncnnd Screencheck Draft EIR:
BRG will carefully review City staff comments on the First.Screencheck Draft EIR. We will prepare a
matrix detailing all substantial comments and identify how each comment is addressed in the EIR. At this
time,we will also make a recommendation as to whether we feel additional alternatives need to be added
to the EIR and discuss our recommendation with City staff. We will incorporate City comments and
perform a final quality control review before submitting the Second Screencheck DEIR to the City. We will
complete the comments matrix by providing a summary of each response and where each response can
be found in the EIR.
7. Draft EIR for Public Review;
BRG will carefully review City staff comments on the Second Screencheck Draft EIR. We will incorporate
City comments and perform a final quality control review before submitting the Camera-Ready DEIR to
the City. We will prepare a matrix detailing all substantial comments as described above. We will meet
with City Staff to discuss how we responded to all comments. During this meeting we will discuss any
further changes that may be necessary. After the meeting, BRG will complete any additional changes,
perform a final QA/QC review, then will have one final meeting with City staff to review the Draft EIR.
JS.First Screencheck Final EIR:
We understand the First Screencheck Final EIR will consist of the following deliverables: Response to
Comments, revised text, First Screencheck Final EIR, Mitigation Monitoring and Reporting Program
MMRP), Findings of Fact (Findings), Statement of Overriding Considerations (SOC), figures, and
attachments.
Besoonse to Comments
Upon close of the Draft EIR public review period, BRG will review all comments, number them,
and distribute them to the City. We will assign specific individuals to prepare responses to
comments, based on the nature of each comment. Each individual will be responsible for
preparation of a response to their assigned comments. BRG will assemble and review all
responses for adequacy and consistency. BRG will identify any responses that affect information
contained in the Draft EIR and may require revising or supplementing information in the EIR. The
format of the responses will be in a side-by-side presentation with the comment letter reduced but
legible on the left and corresponding responses on the right.
First Screencheck Final EIR Figures. and Attachments
BRG will assemble the First Screencheck Final EIR,which will include the responses to
Comments on the Draft EIR and any text that has been revised in response to comments
received during the public review period. The First Screencheck Final EIR will also include all
Figures and Appendices.Again, BRG will implement its QA/QC procedures on the First
Screencheck Final EIR document prior to submittal to the City.
Jvlitiaation Monitorina and Reporting Prooram
BRG will prepare the MMRP that presents necessary information in table format. The MMRP will
be prepared in accordance with Public Resources Code§21081.6(a)(1) and CEQA Guidelines
15091. The MMRP will identify the party responsible for monitoring and will include monitoring
qualifications, specific monitoring activities, a reporting system and criteria for evaluating the
success of the mitigation measures.
Findings of Fact
BRG Consulting will prepare draft Candidate Findings in accordance with the requirements of
State CEQA Guidelines Section 15091. The Findings will follow past formats used by the City
and we will confirm the format prior to beginning work on the Findings.
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111-1 . . -
In the event there are significant and unmitigable impacts of the Proposed Project identified in
the EIR, BRG will prepare the draft Statement of Overriding Considerations (SOC) in accordance
with the requirements of State CEQA Guidelines Section 15093. BRG would work closely with
City staff to draft the SOC, incorporating evidence provided by the City for the Findings to support
approval of the Proposed Project should it have significant and unmitigable impacts. The SOC
would document the specific economic, legal, social, technological, or other benefits, including
region-wide or statewide environmental benefits, of the Proposed Project against its unavoidable
environmental risks. The SOC would state in writing the specific reasons to support its action
based on the final EIR and/or other information in the record.
9.Second Screencheck Final EIR:
BRG will carefully review all City comments. We will prepare a comments response matrix as described
previously. We will incorporate comments to prepare the Second Screencheck submittal to include the
revised response to comments, EIR text, MMRP, Findings, SOC, figures, and attachments. BRG will
again implement its QA/QC procedures on the Second Screencheck Final EIR document prior to
submittal to the City.
10. Final EIR:
BRG will carefully review all City comments. We will prepare a comments response matrix as described
previously. We will incorporate comments to prepare the Final EIR submittal to include the revised
response to comments, EIR text, MMRP, Findings, SOC, figures, and attachments.We will implement our
QA/QC procedures in reviewing the Final EIR document prior to submittal to the City. We will meet with
City Staff and discuss how we responded to all comments. During the meeting we will discuss any further
changes that may be necessary. After the meeting we will complete such changes and perform a final
QA/QC review. We will then have one final meeting with City staff to review the Final ER to include the
revised response to comments, EIR text, MMRP, Findings, SOC, figures, and attachments.
11. Project Coordination and Meetings;
BRG and our team members anticipate participating in regular meetings with City staff and/or the design
team throughout preparation of the EIR, and that the majority of these meetings will be conducted via
telephone conference call. We will ensure the appropriate project team members are at each meeting.
We will prepare meeting notes to document action items and responsibilities.
FIR Schedule
A proposed schedule for completing all work specified in this Scope of Services is provided on
the following page. BRG proposes to complete the EIR within approximately nine (9) months of
receiving the Notice to Proceed. This is an accelerated schedule that will require significant
coordination with City Staff and the Team. The BRG team will manage the project schedule
carefully, keeping a close watch on critical path tasks.
City of Seal Beach EXHIBIT B
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COST PROPOSAL AND FEES
SCOPE OF WORK FEE MAN
HOURS
Task 1 Public Participation Process and Analysis 36,800.00 209
Task 2 Site Selection Recommendation &Analysis
Task 3 Site Information and Analysis 62,190.00 358
Task 4 Activity and Aquatic Center Analysis 17,390.00 114
Task 5 Aquatic Center Recommendation 8,600.00 64
Task 6 Conceptual Plans and Cost Analysis 35,130.00 270
Task 7 Environmental Preparation 63,320.00 399
Kick-Off Event Refreshment Allowance 5,000.00
Mindmixer Online Platform Allowance 3,000.00
Traffic Engineer Allowance 7,500.00
Total: 238,930.00 1,414
Westberg+White(Architect)
Hourly Rates
Partner 230.00
Project Architect/Manager 175.00
Senior Designer 135.00
CAD, Senior 80.00
CAD, Intermediate 65.00
Administrative 60.00
Counsilman-Hunsaker(Aquatic Design)
Hourly Rates
Principal/Studio Director 160.00
Project Manager 135.00
Project Engineer 110.00
Design Associate 90.00
Administrative 55.00
Community Change Partners (Outreach)
Hourly Rates
Partner 180.00
James Suhr&Associates (Feasibility Study)
Hourly Rates
Partner 175.00
BRG Consulting (CEQA)
Hourly Rates
Principal 285.00
Senior Project Manager 165.00
Asst. Project Manager 120.00
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Environ Analyst II 95.00
Environ Analyst I 75.00
GIS Specialist 95.00
Documents Manager 85.00
Leverton &Associates(Cost Estimating)
Hourly Rates
Partner 90.00
Notes:
While we believe a (Mitigated) Negative Declaration will likely be the appropriate CEQA document for the
project, it may be determined that an EIR would be the recommended document for compliance with CEQA.
This determination will be possible once the site selection process has narrowed the choice of feasible
alternative sites, including community input during the public outreach and our initial environmental review.
In the event an EIR is necessary, the probable range of cost would likely be from $95,000 to $150,000,
including all technical studies. The actual cost of preparing the EIR would be highly dependent on the
number and nature of significant issues to be addressed. This cost would be negotiated with the City and
would replace, not be in addition to, the currently proposed $63,320.00 budget for Task 7.
As we proceed with the task of identifying potential sites and making a site selection, other services may be
necessary such as Geotechnical/Hydrology Reports, Civil Engineering and Topographic Surveys, etc. which
will be considered as Reimbursable Expenses.
The fee for the real estate transaction involvement of James Suhr to represent the City as the buyer would
typically result in a 1%fee based on purchase price.
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AMENDMENT NO. 1
PROFESSIONAL SERVICES AGREEMENT
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
&
Westberg + White, Inc.
1775 Hancock Street, Suite 120
San Diego, CA 92110
(619) 542-1188
This Amendment No. 1, dated February 24, 2020, amends that certain agreement
(“Agreement”) dated September 8, 2014 by and between the City of Seal Beach (“City”),
a California charter city, and Westberg + White, Inc. (“Consultant”), a California
corporation.
RECITALS
A. City and Consultant are parties to the Agreement, pursuant to which Consultant
provides public outreach and preliminary design services to City for the Community Pool project
(“Project”).
B. City and Consultant wish to amend the Agreement for Consultant to provide
additional professional design services for the Project, and to increase Consultant’s
compensation by $88,569 for those additional services required in connection with the Project, for
revised total compensation in the not-to-exceed amount of $327,499, as provided herein.
AMENDMENT NO. 1
NOW, THEREFORE and in consideration of the foregoing and of the mutual
covenants and promises herein set forth, the parties agree to amend the Agreement as
follows:
Section 1. Section 1.0 (Scope of Services) of the Agreement, is hereby amended
to add subsection 1.1.1 to read as follows:
“1.1.1 Consultant shall provide those additional services set forth in
the attached Exhibit A-1 (Consultant’s Scope of Services -- Additional
Services), which are hereby incorporated by reference. To the extent that
there is any conflict between Exhibits A, A-1, B, and this Agreement, as
amended by Amendment No. 1, Amendment No. 1 to this Agreement shall
control.”
Section 2. Section 3.0 (Consultant’s Compensation) of the Agreement is hereby
amended in its entirety to read as follows:
“City will pay Consultant in accordance with the hourly rates shown on the fee
schedule set forth in Exhibits A, A-1, and B for Services but in no event will the City
pay more than $327,499. Any additional work authorized by the City pursuant to
Section 1.4 will be compensated in accordance with the fee schedule set forth in
Exhibits A, A-1, and B.”
Section 3. Section 12.0 (Indemnification, Hold Harmless, and Duty to Defend) of
the Agreement is hereby amended in its entirety to read as follows:
“Consultant and the City agree that the City, its elected officials, officers,
attorneys, agents, employees, designated volunteers, successors, assigns
and those City agents serving as independent contractors in the role of City
officials (collectively “Indemnitees” in this Section 12.0) should, to the fullest
extent permitted by law, be fully protected from any loss, injury, damage,
claim, liability, lawsuit, cost, expense, attorneys’ fees, litigation costs,
defense costs, court costs and/or any other cost arising out of or in any way
related to the performance of this Agreement. Accordingly, the provisions of
this indemnity provision are intended by the Parties to be interpreted and
construed to provide the fullest protection possible under the law to the City
and all other Indemnitees. Consultant acknowledges that the City would not
have entered into this Agreement, in the absence of the commitment of
Consultant to indemnify and protect the City and the other Indemnitees, as
set forth in this Agreement.
12.1 Indemnity for Design Professional Services. To the fullest extent
permitted by law, Consultant shall, at its sole cost and expense, indemnify
and hold harmless the City and all other Indemnitees (as defined in this
Section 12.0), from and against any and all damages, costs, expenses,
liabilities, claims, demands, causes of action, proceedings, judgments,
penalties, liens, and losses of any nature whatsoever, including fees of
accountants and other professionals, and all costs associated therewith,
and reimbursement of attorneys’ fees and costs of defense (collectively
“Claims”), whether actual, alleged or threatened, which arise out of, pertain
to, or relate to, in whole or in part, the negligence, recklessness or willful
misconduct of Consultant, and/or its officers, agents, servants, employees,
subcontractors, contractors or their officers, agents, servants or employees
(or any entity or individual that Consultant shall bear the legal liability
thereof) in the performance of design professional services under this
Agreement by a “design professional,” as the term is defined under
California Civil Code § 2782.8(c). Notwithstanding the foregoing and as
required by Civil Code § 2782.8(a), in no event shall the cost to defend the
Indemnitees that is charged to Consultant exceed Consultant’s
proportionate percentage of fault.
12.2 Other Indemnitees. Other than in the performance of design
professional services, and to the fullest extent permitted by law, Consultant
shall, at its sole cost and expense, protect, defend, hold harmless and
indemnify the Indemnitees from and against any and all damages, costs,
expenses, liabilities, claims, demands, causes of action, proceedings,
judgments, penalties, liens and losses of any nature whatsoever, including
fees of accountants, attorneys and other professionals, and all costs
associated therewith, and the payment of all consequential damages
(collectively “Damages”), in law or equity, whether actual, alleged or
threatened, which arise out of, pertain to, or relate to the acts or omissions
of Consultant, its officers, agents, servants, employees, subcontractors,
materialmen, suppliers, or contractors, or their officers, agents, servants or
employees (or any entity or individual that Consultant shall bear the legal
liability thereof) in the performance of this Agreement, including the
Indemnitees’ active or passive negligence, except for Damages arising from
the sole negligence or willful misconduct of the Indemnitees, as determined
by final arbitration or court decision or by the agreement of the Parties.
Consultant shall defend the Indemnitees in any action or actions filed in
connection with any Damages with counsel of the Indemnitees’ choice, and
shall pay all costs and expenses, including all attorneys’ fees and experts’
costs actually incurred in connection with such defense. Consultant shall
reimburse the Indemnitees for any and all legal expenses and costs
incurred by the Indemnitees in connection therewith.
12.3 Subcontractor Indemnification. Consultant shall obtain executed
indemnity agreements with provisions identical to those in this Section 12.0
from each and every subcontractor or any other person or entity involved
by, for, with or on behalf of Consultant in the performance of this
Agreement. If Consultant fails to obtain such indemnities, Consultant shall
be fully responsible and indemnify, hold harmless and defend the
Indemnitees from and against any and all Claims in law or equity, whether
actual, alleged or threatened, which arise out of, are claimed to arise out of,
pertain to, or relate to the acts or omissions of Consultant’s subcontractor,
its officers, agents, servants, employees, subcontractors, materialmen,
contractors or their officers, agents, servants or employees (or any entity or
individual that Consultant’s subcontractor shall bear the legal liability
thereof) in the performance of this Agreement, including the Indemnitees’
active or passive negligence, except for Claims or Damages arising from
the sole negligence or willful misconduct of the Indemnitees, as determined
by final arbitration or court decision or by the agreement of the Parties.
12.4 The obligations of Consultant under this or any other provision of
this Agreement, shall not be limited by the provisions of any workers’
compensation act or similar act. Consultant expressly waives any statutory
immunity under such statutes or laws as to the Indemnitees. Consultant’s
indemnity obligation set forth in this Section 12.0 shall not be limited by the
limits of any policies of insurance required or provided by Consultant
pursuant to this Agreement.
12.5 Consultant’s covenants under this Section 12.0 shall survive
the expiration or termination of this Agreement.”
Section 4. Section 14.0 (Labor Certification) of the Agreement is hereby amended
in its entirety to read as follows:
14.0 Labor Law Requirements
14.1 Labor Certification. By its signature hereunder, Consultant certifies
that it is aware of the provisions of Section 3700 of the California Labor Code that
require every employer to be insured against liability for Workers’ Compensation or to
undertake self-insurance in accordance with the provisions of that Code, and agrees
to comply with such provisions before commencing the performance of the Services.
14.2 Prevailing Wage and Payroll Records. This Agreement calls for
services that, in whole or in part, constitute “public works” as defined in the
California Labor Code, and Consultant shall comply in all respects with all
applicable provisions of the California Labor Code, including those set forth
in Exhibit C, attached hereto and incorporated by reference herein.
Section 5. All references to the term “Agreement” throughout Sections 1.0 through 23.0,
inclusive, of the Agreement are hereby modified to include the Agreement dated September 8,
2014, and this Amendment No. 1, dated February 24, 2020, as if all of those terms are fully set
forth therein.
Section 6. Except as expressly modified or supplemented by this Amendment No. 1, all
other provisions of the Agreement shall remain unaltered and in full force and effect. In the event
of a conflict between the provisions of this Amendment No. 1 and the provisions of the Agreement,
the provisions of this Amendment No. 1 shall control.
EXHIBIT A-1
Consultant’s Scope of Services -- Additional Services
EXHIBIT C
TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS
1. This Agreement, as amended by Amendment No. 1, calls for services that, in
whole or in part, constitute “public works” as defined in Division 2, Part 7, Chapter 1
(commencing with Section 1720) of the California Labor Code (“Chapter 1”). Further,
Consultant acknowledges that this Agreement is subject to (a) Chapter 1 and (b) the
rules and regulations established by the Department of Industrial Relations (“DIR”)
implementing such statutes. Therefore, as to those Services that are “public works”,
Consultant shall comply with and be bound by all the terms, rules and regulations
described in 1(a) and 1(b) as though set forth in full herein.
2. California law requires the inclusion of specific Labor Code provisions in certain
contracts. The inclusion of such specific provisions below, whether or not required by
California law, does not alter the meaning or scope of Section 1 above.
3. Consultant shall be registered with the Department of Industrial Relations in
accordance with California Labor Code Section 1725.5, and has provided proof of
registration to City prior to the Effective Date of this Agreement. Consultant shall not
perform work with any subcontractor that is not registered with DIR pursuant to
Section 1725.5. Consultant and subcontractors shall maintain their registration with
the DIR in effect throughout the duration of this Agreement, as amended by
Amendment No. 1. If Consultant or any subcontractor ceases to be registered with
DIR at any time during the duration of the Project, Consultant shall immediately notify
City.
4. Pursuant to Labor Code Section 1771.4, Consultant’s Services are subject to
compliance monitoring and enforcement by DIR. Consultant shall post job site
notices, as prescribed by DIR regulations.
5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem
wages for each craft, classification, or type of worker needed to perform the
Agreement, as amended by Amendment No. 1, are on file at City Hall and will be
made available to any interested party on request. Consultant acknowledges receipt
of a copy of the DIR determination of such prevailing rate of per diem wages, and
Consultant shall post such rates at each job site covered by this Agreement, as
amended by Amendment No. 1.
6. Consultant shall comply with and be bound by the provisions of Labor Code
Sections 1774 and 1775 concerning the payment of prevailing rates of wages to
workers and the penalties for failure to pay prevailing wages. Consultant shall, as a
penalty to City, forfeit $200.00 for each calendar day, or portion thereof, for each
worker paid less than the prevailing rates as determined by the DIR for the work or
craft in which the worker is employed for any public work done pursuant to this
Agreement, as amended by Amendment No. 1, by Consultant or by any
subcontractor.
7. Consultant shall comply with and be bound by the provisions of Labor Code
Section 1776, which requires Consultant and each subcontractor to: keep accurate
payroll records and verify such records in writing under penalty of perjury, as
specified in Section 1776; certify and make such payroll records available for
inspection as provided by Section 1776; and inform City of the location of the
records.
8. Consultant shall comply with and be bound by the provisions of Labor Code
Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations, Title 8,
Section 200 et seq. concerning the employment of apprentices on public works
projects. Consultant shall be responsible for compliance with these aforementioned
Sections for all apprenticeable occupations. Prior to commencing work under this
Agreement, Consultant shall provide City with a copy of the information submitted to
any applicable apprenticeship program. Within 60 days after concluding work
pursuant to this Agreement, Consultant and each of its subcontractors shall submit to
City a verified statement of the journeyman and apprentice hours performed under
this Agreement.
9. Consultant shall not perform work with any Subcontractor that has been debarred
or suspended pursuant to California Labor Code Section 1777.1 or any other federal
or state law providing for the debarment of contractors from public works. Consultant
and subcontractors shall not be debarred or suspended throughout the duration of
this Contract pursuant to Labor Code Section 1777.1 or any other federal or state law
providing for the debarment of contractors from public works. If Consultant or any
subcontractor becomes debarred or suspended during the duration of the Project,
Consultant shall immediately notify City.
10. Consultant acknowledges that eight hours labor constitutes a legal day’s work.
Consultant shall comply with and be bound by Labor Code Section 1810. Consultant
shall comply with and be bound by the provisions of Labor Code Section 1813
concerning penalties for workers who work excess hours. Consultant shall, as a
penalty to City, forfeit $25.00 for each worker employed in the performance of this
Agreement by Consultant or by any subcontractor for each calendar day during which
such worker is required or permitted to work more than eight hours in any one
calendar day and 40 hours in any one calendar week in violation of the provisions of
Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code
Section 1815, work performed by employees of Consultant in excess of eight hours
per day, and 40 hours during any one week shall be permitted upon public work upon
compensation for all hours worked in excess of eight hours per day at not less than
one and one-half times the basic rate of pay.
11. California Labor Code Sections 1860 and 3700 provide that every employer will
be required to secure the payment of compensation to its employees. In accordance
with the provisions of California Labor Code Section 1861, Consultant hereby
certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which
require every employer to be insured against liability for workers’
compensation or to undertake self-insurance in accordance with the
provisions of that code, and I will comply with such provisions before
commencing the performance of the work of this contract.”
12. For every subcontractor who will perform work on the Project, Consultant shall be
responsible for such subcontractor’s compliance with Chapter 1 and Labor Code
Sections 1860 and 3700, and Consultant shall include in the written contract between
it and each subcontractor a copy of those statutory provisions and a requirement that
each subcontractor shall comply with those statutory provisions. Consultant shall be
required to take all actions necessary to enforce such contractual provisions and
ensure subcontractor’s compliance, including without limitation, conducting a periodic
review of the certified payroll records of the subcontractor and upon becoming aware
of the failure of the subcontractor to pay his or her workers the specified prevailing
rate of wages. Consultant shall diligently take corrective action to halt or rectify any
failure.
13. To the maximum extent permitted by law, Consultant shall indemnify, hold
harmless and defend (at Consultant’s expense with counsel reasonably acceptable to
City) City, its officials, officers, employees, agents and independent contractors
serving in the role of City officials, and volunteers from and against any demand or
claim for damages, compensation, fines, penalties or other amounts arising out of or
incidental to any acts or omissions listed above by any person or entity (including
Consultant, its subcontractors, and each of their officials, officers, employees and
agents) in connection with any work undertaken or in connection with the Agreement,
including without limitation the payment of all consequential damages, attorneys’
fees, and other related costs and expenses. All duties of Consultant under this
Section shall survive the termination of the Agreement.
Agenda Item H
AGENDA STAFF REPORT
DATE:February 24, 2020
TO:Honorable Mayor and City Council
THRU:Jill R. Ingram, City Manager
FROM:Patrick Gallegos, Assistant City Manager
SUBJECT:Approve the Memorandum of Understanding with the Seal
Beach Marine Safety Management Association for the
Period of July 1, 2019 through June 30, 2021, and
Authorizing the City Manager to Execute the Same
________________________________________________________________
SUMMARY OF REQUEST:
That the Council adopt Resolution 7008:
1. Approving the Memorandum of Understanding with the Seal Beach
Marine Safety Management Association (SBMSMA) for the period of
July 1, 2019 through June 30, 2021; and,
2. Authorizing the City Manager to execute the same.
BACKGROUND AND ANALYSIS:
In May of 2019, the City and the SBMSMA began discussion for a new
Memorandum of Understanding between the City and the SBMSMA. The City has
met and collectively bargained in good faith with the Seal Beach Marine Safety
Management Association (SBMSMA) as to wages, hours, and working conditions.
Based upon such collective bargaining, the City and the SBMSMA have drafted a
Memorandum of Understanding (MOU).
The terms and conditions of a tentative agreement were reached between the City
and the SBMSMA. The MOU attached to Resolution 7008, incorporates the terms
and conditions of the agreement. The SBMSMA has accepted the terms,
conditions and provisions set forth in its MOU. The MOU has a retroactive term of
July 1, 2019 through June 30, 2021.
This agreement is a two year agreement and entitles the bargaining unit a cost of
living adjustment of 3% in year one of the contract and 2% to 4% in year two (based
on the Consumer Price Index). Additionally, members of the bargaining unit and
the City have agreed to certain additional benefits (e.g. a medical maintenance
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program), as well as a reduction in other benefits (e.g. decrease in deferred
compensation and administrative leave).
A redline version of the MOU is available for download on the City’s website at
www.sealbeachca.gov (City Clerk’s webpage) and hard copies are available at the
City Clerk’s office.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
No legal analysis is required for this item.
FINANCIAL IMPACT:
Approval of this resolution will have a financial impact of less than $1,300 for the
remainder of FY 2019 – 2020 which will be covered through savings in the Division.
In subsequent years, funds will be appropriated through the budget process.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
MEASURE BB:
This item is not applicable to Measure BB, the Seal Beach Neighborhood and
Essential Services Protection Measure.
RECOMMENDATION:
That the Council adopt Resolution 7008:
1. Approving the Memorandum of Understanding with the Seal Beach
Marine Safety Management Association (SBMSMA) for the period of
July 1, 2019 through June 30, 2021; and,
2. Authorizing the City Manager to execute the same.
SUBMITTED BY: NOTED AND APPROVED:
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Patrick Gallegos Jill R. Ingram
Patrick Gallegos, Assistant City
Manager
Jill R. Ingram, City Manager
ATTACHMENTS:
A. Resolution 7008
B. Exhibit A - SBMSMA MOU (clean)
C. Exhibit B – SBMSMA MOU (redline)
RESOLUTION 7008
APPROVE THE MEMORANDUM OF UNDERSTANDING WITH THE
SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION
FOR THE PERIOD OF JULY 1, 2019 THROUGH JUNE 30, 2021,
AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE
SAME
THE CITY COUNCIL HEREBY RESOLVES AS FOLLOWS:
WHEREAS, the City of Seal Beach values the work of all its employees and
seeks to maintain fair and mutually beneficial terms and conditions of
employment for the good of the City and the employees; and,
WHEREAS, representatives of the City and representatives of the bargaining
group named above have met, conferred, and negotiated in good faith regarding
wages, hours and working conditions. As a result of such good faith negotiation
the City and the group have developed the Memorandum of Understanding
(“MOU”) attached hereto as Exhibit A, which is incorporated herein by this
reference.
NOW, THEREFORE, BE IT RESOLVED THAT:
SECTION 1. The MOU between the City of Seal Beach and the Seal Beach
Marine Safety Management Association dated July 1, 2019 through June 30,
2021 and attached hereto as Exhibit A is hereby approved.
SECTION 2. The City Manager is authorized to execute Exhibit A, inclusive, on
behalf of the City, and to take the actions necessary to implement.
SECTION 5. The City Clerk shall certify to the passage and adoption of this
resolution.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 24th day of February 2020 by the following vote:
AYES: Council Members ______________________________________
NOES: Council Members ______________________________________
ABSENT: Council Members ______________________________________
ABSTAIN: Council Members ______________________________________
Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7008 on file in the office of
the City Clerk, passed, approved, and adopted by the City Council at a regular
meeting held on the 24th day of February 2020.
Gloria D. Harper, City Clerk
Adopted by Resolution 7008
EXHIBIT A
Seal Beach Marine Safety Management
Association (SBMSMA)
MEMORANDUM OF UNDERSTANDING
ADOPTED: February 24, 2020
EXPIRES: June 30, 2021
Resolution 7008 SBMSMA
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TABLE OF CONTENTS
SECTION 1: RECOGNITION .................................................................................5-6
SECTION 2: CITY RIGHTS
Rights/Responsibilities..................................................................................6-7
SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY
INSURANCE
A. Health Insurance Coverage........................................................................8
B. Life Insurance .............................................................................................9
C. Income Continuation..............................................................................9
D. Annual Dermatological Screening .........................................................9
SECTION 4: RETIREMENT HEALTH INSURANCE .............................................10
SECTION 5: SICK LEAVE ......................................................................................11
SECTION 6: VACATION TIME ..........................................................................11-13
SECTION 7: HOLIDAYS ....................................................................................13-15
SECTION 8: RETIREMENT ....................................................................................15
SECTION 9: OVERTIME AND CALL OUT PAY ..............................................15-16
SECTION 10: COMPENSATORY TIME OFF ........................................................16
Resolution 7008 SBMSMA
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SECTION 11: PROVISIONAL APPOINTMENTS...................................................16
SECTION 12: SENIORITY BONUS ........................................................................16
SECTION 13: AUTOMOBILES AND MILEAGE ....................................................17
SECTION 14: ADMINISTRATIVE LEAVE ..............................................................17
SECTION 15: LIMITATIONS ...................................................................................17
SECTION 16: DEFERRED COMPENSATION .......................................................17
SECTION 17: BILINGUAL COMPENSATION ..................................................17-18
SECTION 18: CERTIFICATION PAY ……………………………………………...17
SECTION 19: WORK SCHEDULE .........................................................................18
SECTION 20: TUITION REIMBURSEMENT.....................................................18-19
SECTION 21: COMPENSATION PLAN
A. Basic Compensation Plan........................................................................18
B. Advancement within Salary Ranges...................................................19-20
C. Salary Increases.......................................................................................19
D. Salary Decreases.....................................................................................20
E. Adjustments of Salary Ranges.................................................................20
F. Salary and Benefits on Suspension .........................................................20
G. Salary Adjustments During Term of MOU..........................................20-21
Resolution 7008 SBMSMA
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SECTION 22: LEAVES OF ABSENCE
A. Authorized Leave of Absence Without Pay........................................21-22
B. Bereavement Leave ................................................................................21
C. Military Leave of Absence.......................................................................22
D. Pregnancy Disability Leave of Absence .................................................22
E. Family Leave.......................................................................................22-23
F. Catastrophic Leave .............................................................................23-24
SECTION 23: HEALTH WELLNESS PROGRAM………………………………….24
SECTION 24: MISCELLANEOUS
Lay-off.............................................................................................................24
SECTION 25: TERM ................................................................................................25
SECTION 26: APPEALS .........................................................................................25
SECTION 27: REOPENER......................................................................................25
SECTION 28: RATIFICATION ................................................................................25
Resolution 7008 SBMSMA
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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF SEAL BEACH
MARINE SAFETY MANAGEMENT ASSOCIATION
SECTION 1: RECOGNITION
A. Pursuant to the provisions of Employee-Employer Relations Resolution
5242, as amended, the City of Seal Beach (hereinafter called the "City" and/or
"Employer" and/or “Management” interchangeably) has recognized for the
purpose of this Memorandum of Understanding (MOU), the Seal Beach Marine
Safety Management Association (SBMSMA) an association of employees of the
City of Seal Beach, hereinafter referred to as "Association".
B. The City recognizes the Association as the representative of the
employees in the classification and assignments set forth in Section 21.G below
for the purpose of meeting its obligations under this MOU, the Meyers-Milias-
Brown Act, Government Code Section 3500 et seq., when City rules, regulations,
or laws affecting wages, hours and/or other terms and conditions of employment
are amended or changed.
C. The City agrees that the recognized representatives of Association not to
exceed 3 in number shall be entitled to meet and confer with City during said
recognized representatives' normal working hours without suffering any loss in
pay while absent from the duties for such purpose. City also agrees that such
representatives may utilize a total of not more than 3 hours per year without
suffering any loss in pay for such absence for the purpose of meeting with
employees who are members of the Association and/or other officers of the
Association.
D. City recognizes Association's right to appoint or elect representatives to
meet and confer with City's management representatives on salaries, wages, and
terms and conditions of employment. Association agrees to notify City in writing
as to the identity of the representatives and of subsequent appointments, if any.
Association and City agree that employees appointed or elected as Association
representatives shall be required to work full time.
E. It is recognized and agreed that no Association business and/or meetings
will be conducted and/or attended by employees of City during their respective
hours of duty and work unless specified herein.
Resolution 7008 SBMSMA
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F. Representatives and/or officers of Association shall not interrupt the work
of any employee of City at any time to conduct business or other matters
connected with Association without prior consent of Management.
G. This document supersedes all prior Memoranda of Understanding and
verbal agreements between the parties hereto.
SECTION 2: CITY RIGHTS
A.Rights/Responsibilities - This City reserves, retains and is vested with
solely and exclusively, all rights of management which have not been expressly
abridged by specific provisions of this MOU or by law to manage the City, as such
rights existed prior to the execution of this MOU. The sole and exclusive rights of
management, as they are not abridged by this Agreement or by law, shall include
but not be limited to, the following rights:
1. To manage the City generally and to determine the issues of policy.
2. To determine the existence or nonexistence of facts which are the
basis of the management decision(s).
3. To determine the necessity and organization of any service or activity
conducted by the City and expand or diminish services.
4. To determine the nature, manner, means and technology and extent
of services to be provided to the public.
5. To determine methods of financing.
6. To determine types of equipment or technology to be used.
7. To determine and/or change the facilities, methods, technology,
means, organizational structure and size and composition of the work force and
allocate and assign work by which the City operations are to be conducted.
8. To determine and change the number of locations, relocations, and
types of operations, processes and materials to be used in carrying out all City
functions including, but not limited to, the right to contract for or subcontract any
work or operation of the City.
9. To assign work to and schedule employees in accordance with any
requirements set forth in this MOU, and to establish and change work schedules
and assignments upon reasonable notice insofar as such changes do not conflict
with this MOU.
Resolution 7008 SBMSMA
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10. To layoff employees from duties because of lack of work or funds, or
under conditions where continued work would be ineffective or non-productive.
11. To establish and modify productivity and performance programs and
standards.
12. To discharge, suspend, demote, reprimand, withhold salary increases
and benefits, or otherwise discipline employees for cause.
13. To determine minimum qualifications, skills abilities, knowledge,
selection procedures and standards, job classifications and to reclassify employees
in accordance with this MOU and applicable resolutions and codes of the City.
14. To hire, transfer, promote and demote employees for non-disciplinary
reasons in accordance with the MOU and applicable resolutions and codes of the
City.
15. To determine policies, procedures and standards for selection,
training and promotion of employees in accordance with this MOU and applicable
resolutions and codes of the City.
16. To establish reasonable employee performance standards including
but not limited to, quality and quantity standards and to require compliance
therewith.
17. To maintain order and efficiency in its facilities and operation.
18. To establish and promulgate and/or modify rules and regulations to
maintain order and safety and which are not in contravention with the Agreement.
19. To restrict the activity of an employee organization on municipal
property and on municipal time except as set forth in this MOU.
20. To take any and all necessary action to carry out the mission of the
City in emergencies.
B. Where the City is required to make changes in its operations because of the
requirements of law, whenever the contemplated exercise of City Rights shall
impact the wages, hours and other terms and conditions of employment of the
bargaining unit, the City agrees to meet and confer in good faith with
representatives of the Association regarding the impact of the contemplated
exercise of such rights prior to exercising such rights, unless the matter of the
exercise of such rights is provided for in this MOU.
Resolution 7008 SBMSMA
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SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY
INSURANCE
A.Health Insurance Coverage
1. The City shall contribute to the cost of medical coverage for each
eligible employee and his/her dependents, an amount not to exceed the California
Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum
contribution. For calendar year 2019, CalPERS has established the minimum
PEMHCA contribution at $136 per month per employee.
2. The City shall contribute an equal amount towards the cost of medical
coverage under PEMHCA for both active eligible employees and eligible retirees.
3. The City shall implement a full flex cafeteria plan for eligible
employees in accordance with the criteria provided to the Association during
negotiations. For employees participating in the City’s cafeteria plan, each
employee shall receive a monthly flex dollar allowance to be used for the purchase
of benefits under the cafeteria plan. Beginning January 1, 2019, the monthly flex
dollar allowance shall be:
For Employee only $
862.11/month
For Employee and 1 dependent $
1332.24/month
For Employee and 2 or more dependents $
1722.83/month
4. A portion of the monthly flex dollar allowance is identified as the City’s
contribution towards PEMHCA. Thus, for example, in calendar year 2019, an
employee only monthly flex dollar allowance is $862.11, of that $862.11; $136 has
been designated by the City as its required PEMHCA contribution to CalPERS.
The monthly flex dollar allowance may only be used in accordance with the terms of
the City’s cafeteria plan.
5. Effective January 1, 2020, and every January 1st thereafter during the
term of this agreement, the City shall increase the contribution amounts above by
the average percentage of increase for basic plans published by CalPERS which
sets health insurance premiums for the coverage year.
6. Employees meeting the waiver criteria and electing to waive
enrollment in the City’s cafeteria plan are eligible to receive $350 per month
beginning January 1, 2019 (upon showing proof of medical insurance coverage
under an alternative plan). Election forms are available in the Human Resources.
Resolution 7008 SBMSMA
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7. Full-time employees covered by this MOU who have completed 30
days of uninterrupted service shall be enrolled in the cafeteria plan on the first day
of the next succeeding month.
8. Employees who change classification from full-time to part-time
provisional, hourly or seasonal shall not be eligible for participation in the cafeteria
plan.
9. City shall not contribute to the cafeteria plan for any employee during
any month the employee is on leave of absence without pay or who is absent from
regular duties without authorization, for a full calendar month. City shall contribute
to the cafeteria plan for eligible employees receiving temporary payments from
Workers Compensation Insurance.
B.Life Insurance
Employees covered by this agreement shall receive a $50,000 term life
insurance policy paid by the City. Said insurance shall become effective after the
employee has completed 30 days of uninterrupted service with said employee to
be enrolled in the program on the 1st day of the next succeeding month.
C.Income Continuation
Employees covered by this Agreement shall receive a policy to provide for
income continuation of 66.67% of the employee's monthly salary, up to a
maximum of $5,000 per month, whichever is lesser, paid by the City. Said
insurance shall become effective after the employee has completed 30 days of
uninterrupted service with said employee to be enrolled in the program on the 1st
day of the next succeeding month. Said income continuation shall commence on
the 3lst day of sickness or other bona fide absence or upon expiration of sick
leave, whichever occurs later, and continuing thereafter while the employee is
absent from work for a period of up to age 65.
D.Annual Dermatological Screening
The City will provide employees with one (1) annual dermatological (skin cancer)
screening at no cost to employees. Screening will be provided by Beach
Dermatology located at 500 Pacific Coast Highway, Suite 212 in Seal Beach and
must be scheduled by the employee. Any treatment deemed necessary
following the exam shall be scheduled by the employee through the employee’s
provider of choice using the employee’s insurance. All medical billing for the
screening services will be forwarded for payment to the City of Seal Beach by
Beach Dermatology.
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SECTION 4: RETIREMENT HEALTH INSURANCE
A. Employees covered by this Agreement shall have the option upon
retirement, to continue participation in the City's health insurance program at the
employee's expense.
B. Employees in the Marine Safety Lieutenant classification, who were
hired before January 1, 2008 by the City, and who retire after December 31,
2009, with 20 or more combined years of employment with the City shall, upon
retirement, be provided with individual medical insurance coverage. If said
employee has 30 or more combined years of employment with the City upon
retirement, eligible dependent medical insurance coverage shall also be provided
at the rate of (a) the average of the 2 lowest cost medical care plans offered by
CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the
retired employee becomes Medicare eligible, the City’s contribution will be
capped at the rate of (a) the average of the 2 lowest cost Medicare supplement
plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare
supplement plan, whichever is greater.
C. Employees in the Marine Safety Officer classification covered by this
Agreement who were hired before April 13, 2009 by the City, have 20 or more
combined years of employment with the City, have reached 55 years of age, and
retire after December 31, 2010, shall be provided with individual medical
insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or
more combined years of employment with the City upon retirement, eligible
dependent medical insurance coverage shall also be provided capped at the
Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents
medical insurance is identified as the City’s contribution towards PEMHCA.
D. On or after January 1st 2008, the City shall contribute to the cost of
medical coverage for each eligible retiree and dependents, an amount not to
exceed the California Public Employees’ Medical and Hospital Care Act
(PEMHCA) minimum contribution.
E. In all cases, the City's contribution for eligible dependent coverage for
retirees shall terminate with the death of the retiree.
F. In the event an eligible retired employee resides in an area where the
health plans provided by the City are not in effect, that retired employee shall be
entitled to receive in cash each month an amount equal to the City flex
contribution at time of retirement.
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SECTION 5: SICK LEAVE
A. All full-time employees covered by this MOU shall accrue sick leave at the
rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up
to and including 520 hours. Except as otherwise provided in this MOU, no
employee shall receive further accruals once the 520 hour maximum is reached.
B. The Department Head may require employees to present proof of illness
for sick leaves in excess of 3 working days.
C. All employees in the Marine Safety Lieutenant classification, upon
termination of employment with the City, all compensable leave hours will be paid
to the employee at the employee's base rate of pay. Sick leave balances which
have not been converted to leave time will be paid to the employee upon
termination at 25% of the employee's base rate of pay.
D. All employees in the Marine Safety Officer classification except as
otherwise provided, employees shall not be eligible for any payment for sick
leave balances upon termination.
E. Employees who are on authorized leaves of absence, without pay, shall
not accrue sick leave hours during said leaves of absence.
F. Sick leave balances may not be used to defer a disability retirement.
SECTION 6: VACATION TIME
A.Marine Safety Officers covered by this Agreement, have passed the
employee probationary period (as defined in the Personnel Rules and
Regulations, Section 6.01) shall be granted a vacation with pay of approximately
80 hours per year up to a maximum of approximately (160) hours per year.
B. All employees in the Marine Safety Lieutenant classification who shall
have at least three (3) years of continuous service shall be entitled to eight (8)
additional hours of vacation for each year of full-time continuous service in
excess of three (3) years. The vacation accrual schedule for mid-management
employees is as follows:
Years
Service
Vacation
Hours
Earned
Maximum Hourly
Accrual Rate / Pay
Period Bi-Weekly
Annual
Vacation
Hours
Maximum
Vacation
Accrual
1 80 3.0769 80 160
2 80 3.0769 80 160
3 80 3.0769 80 160
4 88 3.3846 88 200
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5 96 3.6923 96 200
6 104 4.0000 104 200
7 112 4.3044 112 200
8 120 4.6154 120 200
9 128 4.9231 128 240
10 136 5.2308 136 240
11 144 5.5385 144 240
12 152 5.8462 152 240
13 160 6.1538 160 240
C. All employees in the Marine Safety Officer classification who shall have
at least (5) Years of continuous service, shall be entitled to eight (8) additional
hours of vacation per year of full-time continuous service for each year of service
in excess of five (5) years up to a maximum of approximately 160 hours per year.
D. The vacation accrual schedule is as follows:
Years
Service
Vacation
Hours
Earned
Maximum Hourly
Accrual Rate / Pay
Period Bi-Weekly
Annual
Vacation
Hours
1 80 3.0769 80
2 80 3.0769 80
3 80 3.0769 80
4 80 3.0769 80
5 80 3.0769 80
6 88 3.3846 88
7 96 3.6923 96
8 104 4.0000 104
9 112 4.3076 112
10 120 4.6153 120
11 128 4.9230 128
12 136 5.2307 136
13 144 5.5384 144
14 152 5.8461 152
15 160 6.1538 160
E. All employees in the Marine Safety Officer classification shall only be
allowed to accrue a maximum of 240 hours of vacation. Once this maximum is
reached, all further accruals will cease. Vacation accruals will recommence after
the employee has taken vacation and the employee's accrued hours drop below
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the maximum. The maximum can only be exceeded with the approval of the City
Manager in writing.
F. Employees covered by this agreement considered as hourly, part-time
and/or seasonal employees shall not be eligible for paid vacations.
G. Employees covered by this agreement who are on leaves of absence,
without pay, shall not accrue vacation leave hours during said leaves of absence.
H. All employees in the Marine Safety Officer classification not more than
once in each fiscal year, who have completed at least 1 year of continuous
service shall, upon request, receive compensation for up to 80 hours of accrued
vacation time.
I. Employees are encouraged to use at least the amount of vacation hours
earned each fiscal year. Those employees who have been credited with
preexisting leave hours are expected to use a portion of the excess as leave
time, in addition to the new vacation hours, each year until the maximum accrual
is met. The City recognizes that a number of long-term employees have accrued
substantially more leave time than shorter-term employees, and that it will likely
take them significantly longer to achieve this goal. It is the intent of this section
to balance the personal interests of the employee with the financial concerns of
the City; as such, significant progress toward reaching the maximum accrual
amounts may be deemed a success.
J. Vacation leave time shall not be approved until such time as it has been
earned, unless prior, special arrangements have been made with the City
Manager. Vacation leave shall be requested by the employee prior to the start
of the vacation leave period. Such vacation leave to be taken shall be subject to
the prior approval of the Department Head, or designee, subsequent to
consideration of the departmental workload and other staffing considerations,
such as but not limited to, the previously approved vacation schedule of other
employees, sick leave and position vacancies.
K. All employees in the Marine Safety Lieutenant classification not more
than once in each fiscal year, who has completed at least one year of continuous
service shall, upon request, receive compensation for up to 120 hours of accrued
vacation time.
SECTION 7: HOLIDAYS
A. The City agrees to grant all full-time Marine Safety Association
employees a full shift pay for each holiday recognized by City. Every full-time
employee of the City shall be granted the following holidays with pay:
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Holiday Date
New Year’s Day January 1st
Martin Luther King Day 3rd Monday in January
Presidents’ Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4th
Labor Day First Monday in September
Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Calendar day following Thanksgiving Day
Christmas Eve December 24th
Christmas Day December 25th
*Floating Holiday (discretion of employee)
Total of 12 holidays annually
*Floating Holiday must be taken during each fiscal year (July 1st through June 30th).
Floating holidays must be approved in advance by the Department Head.
B. When a holiday falls on a full-time employee’s regularly scheduled day off,
the employee shall receive compensatory time off for a full shift in lieu of holiday
pay, in keeping with other provisions of this MOU.
Example: Employee A normally works a 4/10 schedule, and a
holiday falls on a Monday, Tuesday, Wednesday,
Thursday, or Friday, Employee A would receive (10)
hours of compensatory time off.
C. A Marine Safety Lieutenant or a Marine Safety Officer who is required to
work on a City holiday shall receive pay computed at 1½ times the employees'
base hourly rate for the number of hours actually worked.
Example: Employee A works 6 hours on Christmas Day. Employee A
would earn pay computed as follows:
Hours Pay Rate
Full-shift holiday pay base hourly rate
6 hours work pay regular hourly rate or overtime
hourly rate, as applicable under MOU
E. If an employee is required to work on a City Manager designated closure
work day, the employee will receive pay computed at 1½ times the employees’
basic hourly rate for the number of hours actually worked.
Example: Employee A normally works a 9/80 schedule, and is required to
work 4 hours on a City Manager designated holiday closure work
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day on December 28, 2016. Employee A would earn pay
computed as follows:
Hours Pay Rate
4 hours work pays 1½ times the hourly rate, as applicable under
the MOU
5 hours leave time Compensatory time, vacation, floating holiday,
or combination thereof
SECTION 8: RETIREMENT
A. The retirement program provided by the City shall consist of a pooled
Public Employee's Retirement System (PERS) plan, which includes the
following Government Code provisions:
Section 20042 One Year Final Compensation
Section 20965 Credit of Unused Sick Leave
Section 21024 Military Service Credit
B. All employees incumbent in the Marine Safety Association shall
participate in the 3% @ 50 formula plan for Local Safety Members.
C. The Marine Safety Association “PERS Classic” employees shall pay 9% of
their CALPERS required contribution of their compensation earnable.
D. New employees/members hired on or after January 1, 2013 as defined by
The Public Employees’ Pension Reform Act (PEPRA) will be hired at the
retirement formula in accordance with the PEPRA and other legislation.
SECTION 9: OVERTIME AND CALL OUT PAY
A. The following section pertains to the positions of Marine Safety
Lieutenant and Marine Safety Officer:
1. If work beyond normal workday, workweek or work period is required, the
employee who may be asked to perform such overtime shall be notified of the
apparent need for such overtime as soon as practicable prior to when the
overtime is expected to begin.
2. Call out and overtime pay shall be paid at the rate of time and one-half the
hourly rate. Minimum "call out" time (when returning to work) shall be 3 hours.
Call out time shall start when employee is called to service.
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3. Overtime will be computed by dividing the employee's regular monthly
salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to
be submitted and computed with the regular payroll.
4. Notwithstanding any provision of this Section, the employee shall be
entitled to select either compensated overtime or compensatory time off subject
to budget limitations, departmental rules and regulations, and Section 11 of this
MOU.
SECTION 10: COMPENSATORY TIME OFF (CTO)
The maximum (cap) of CTO is (120) hours. Compensatory Time earned in excess
of (120) hours will be paid as overtime during the pay period accrued.
SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
A. An employee, when authorized by the City Manager, may receive a
provisional appointment to a higher classification to fill a temporary vacancy. The
employee, when so appointed, must perform the duties and assume the
responsibilities of the higher classification for (80) consecutive working hours and
shall be paid according to the step in the assigned salary range of the new
position which is a minimum of 5% higher than the salary received before the
provisional appointment (not to exceed the top step).
B. When necessary and in the best interest of the City, the City Manager may
provisionally assign an employee to a higher level of duty and responsibility than
provided for in the employee's assigned classification which is not otherwise a
part of an adopted classification. In the case of such an assignment, the
employee must perform the higher level of duties for (80) consecutive working
hours; thereafter the employee shall receive additional compensation of 5% so
long as the assignment is authorized by the City Manager.
SECTION 12: SENIORITY BONUS
Employees who have achieved (10) years of uninterrupted employment with the
City shall receive a 5% increase in base salary effective on the l0th anniversary
of their employment.
Employees who have achieved twenty (20) years of uninterrupted employment
with the City shall receive a 2.5% increase in base salary (above the previously-
described 5% increase at 10 years) effective on the 20th anniversary of their
employment.
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SECTION 13: AUTOMOBILES AND MILEAGE
Employees covered by this MOU, utilizing their privately-owned automobiles for
City business on a non-regular basis, shall be entitled to reimbursement for costs
incurred at the mileage rate established by the Internal Revenue Service (IRS).
SECTION 14: ADMINISTRATIVE LEAVE
Effective the 1st payroll period in July 2017, and every July thereafter:
A. The Marine Safety Lieutenant and Marine Safety Officers shall be
entitled to the equivalent of (2) work days of administrative leave during each
fiscal year.
B. Administrative leave hours may not be carried forward to succeeding
years nor may they be turned in for cash value.
SECTION 15: LIMITATIONS
A. No employee who is receiving Workers’ Compensation payments and
benefits is eligible to receive overlapping benefits (except life insurance) stated in
this MOU.
B. City shall not make any monthly payments for premiums for any insurance
benefit listed in this MOU, or uniform allowance, supplemental pay of any type
and/or type of bonus on behalf of or to any employee who has been absent
without authorization during entire said month or for any employee who has
terminated for any reasons whatsoever or who is on leave of absence without
pay of who is suspended from duties without pay for the entire said month.
SECTION 16: DEFERRED COMPENSATION
For the classification of Marine Safety Lieutenant and Marine Safety Officer,
the City shall contribute the amount of $40 per payroll period into a deferred
compensation program.
SECTION 17: BILINGUAL COMPENSATION
A. Upon the recommendation of a department director, the City Manager
may award a bilingual compensation bonus of $52.50 per payroll period to those
employees in positions determined to require bilingual skills.
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B. The City Manager shall require the taking of competency tests to certify
the employee as eligible for bilingual compensation based on the employee's
proficiency in speaking the language determined to be required. Such
certification shall be a condition precedent to qualifying for bilingual pay.
SECTION 18: CERTIFICATION PAY
A. Employees who possess and maintain valid certification for
CPR/AED/First Aid Instructor, as well as a minimum certification of EMT, will
receive $500 annually the first pay day in November.
B. Employees who possess a United States Coast Guard (USCG) Captains
License will receive $250 annually the first pay day in November.
SECTION 19: WORK SCHEDULE
A. At the discretion of the City Manager, work schedules may be altered as
needed to accommodate service demand levels of the residents of the City of
Seal Beach.
SECTION 20: TUITION REIMBURSEMENT
A. Higher Education Degree Programs – Marine Safety Association
employees attending accredited community colleges, universities, and trade
schools for the purpose of obtaining a higher education degree may apply for
reimbursement of tuition, books, student fees and parking. Reimbursement is
capped at the tuition rate of the Cal State University system for up to 2 semesters
of full-time, undergraduate enrollment each calendar year.
B. Reimbursement is contingent upon the successful completion of the
course. Successful completion means a grade of “C” or better for undergraduate
courses and a grade of “B” or better for graduate courses. All claims for tuition
reimbursement require prior approval and are subject to verification and approval
by the City Manager.
Example: Employee A attends California State University, Long
Beach, for the Spring 2020 semester and completes 2
(3-unit) undergraduate courses with a grade of “C” or
better. The tuition reimbursement would be calculated
as follows:
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2019/2020 State University Tuition $1,665.00 (0-6 units)
Required University Fees $ 546.00 (approx.)
Parking $ 155.00
Books $ 300.00 (approx.)
TOTAL $2,666.00
SECTION 21: COMPENSATION PLAN
A.Basic Compensation Plan
1. Employees covered by this MOU shall be included under the Basic
Compensation Plan. Every classification under this Plan shall be assigned a salary
range adopted by the City Council. The salary schedule shall consist of 5 steps
within each range.
2. The first step is a minimum rate and is normally the hiring rate for the
classification. An employee may be assigned, upon appointment, to other than the
normal entering salary step within the assigned range upon the recommendation of
the Department Head and with the approval of the City Manager when it is decided
that such action is in the best interests of the City.
3. The second step, B step, is a merit adjustment which may be given at
the end of the probationary period subject to the recommendation of the
Department Head and with the approval of the City Manager.
4. The third, fourth and fifth steps are merit adjustments to encourage
an employee to improve their work and to recognize increased skill on the job.
Employees are normally eligible for these adjustments at any time after the
completion of (1) year of service at the preceding step. Each adjustment shall be
made subject to the recommendation of the Department Head and with the
approval of the City Manager.
B. Advancement within Salary Ranges
1. In order to properly compensate an employee, advancement in salary
shall be based on merit.
2. Advancement in salary shall not be automatic, but shall depend upon
increased service value of the employee to the City.
3. The Department Head and/or the employee's immediate supervisor
shall be responsible to evaluate an employee fairly in an unbiased fashion for the
determination of job performance. Advancement shall be made only upon
recommendation of the Department Head and with the approval of the City
Manager.
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4. An employee should be reviewed at least once every (12) months
from the effective date of his last performance evaluation, special performance
advancement or promotion. Nothing contained herein shall restrict the Department
Head from denying the increase after evaluation, nor shall it prevent him from
recommending a special performance advancement in salary at any time when
unusual or outstanding achievement has been demonstrated.
C. Salary Increases
1. Promotional Appointment - When an employee is promoted to a
position with a higher salary range, the employee shall be compensated at a step of
the salary range assigned to the new position that is closest to providing a 5%
salary increase over the base salary received immediately prior to promotion.
2. Temporary Appointment - Employees assigned, in an acting capacity,
to a higher classification than the employees' present classification for a period of
not less than 80 consecutive working hours shall be entitled to temporary
appointment pay. In addition, employees who are assigned by the department
director in writing to regularly scheduled acting assignments of less than 80 hours
shall also be entitled to temporary appointment pay. Temporary appointment pay
will be retroactive to the first hour served in the higher classification and shall be
paid at a rate equal to the first step of the higher classification but in no event shall
temporary appointment pay be less than 5% more of the employee's current rate.
D. Salary Decreases - In the case of a demotion of an employee to a
classification with a lower maximum salary, such employee shall be assigned to the
appropriate salary step in the new classification as recommended by the
Department Head with the approval of the City Manager. The employee shall
retain his previous anniversary date.
E. Adjustments of Salary Ranges - When a salary range for a given
classification is revised upward or downward, the incumbents of positions and
classifications affected shall have their existing salary adjusted to the same step in
the new salary range and their anniversary date shall not be changed.
F. Salary and Benefits on Suspension - During suspension from the City
service for disciplinary cause, an employee shall forfeit all rights, privileges and
salary, except he shall not forfeit his medical health plans, including dental,
retirement plan, disability insurance or life insurance. Should such suspension be
later modified or revoked, the employee shall be entitled to receive payment for loss
of income and benefits during the period of suspension.
G. Salary Adjustments During Term of MOU
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1. The salary schedule for each position classification affected is hereby
determined and established upon adoption by City Council Salary increases are as
follows:
First pay period on or following July 1st 2019. Employees shall
receive a 3% cost of living adjustment.
First pay period on or following July 1, 2020 – Employees shall
receive a CPI adjustment, minimum 2% up to 4% maximum, as
measured utilizing the change in the Los Angeles – Long Beach –
Anaheim. All Urban Consumers Index for the 12 months of April
2019 – April 2020.
Mid-Management
Grade Job Classifications
31 Marine Safety Lieutenant
Technical
Grade Job Classifications
23 Marine Safety Officer
SECTION 22: LEAVES OF ABSENCE
A.Authorized Leave of Absence Without Pay
1. Upon the Department Head's recommendation and approval of the
City Manager, an employee may be granted a level of absence without pay in
cases of an emergency or where such absence would not be contrary to the best
interest of the City, for a period not to exceed 180 working days.
2. Upon written request of the employee, the City Manager may grant
a leave of absence, with or without pay, for a period not to exceed (1) year.
3. At the expiration of the approved leave, after notice to return to
duty, the employee shall be reinstated to the position held at the time leave was
granted. Failure on the part of the employee to report promptly at such leave's
expiration and receipt of notice to return to duty shall be cause for discharge.
4. During any authorized leave of absence without pay, an employee
shall not be eligible to accumulate or receive fringe benefits, except an employee
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shall receive their monthly flex dollar allowance and the City, as specifically
provided for in this MOU, shall contribute to the employee’s disability insurance
plan, and life insurance plan for the first (30) days of leave of absence.
B.Bereavement Leave
The City agrees to provide 40 hours bereavement leave with pay for death in the
immediate family. The bereavement leave shall not be chargeable to or
accumulated as sick time or leave time. “Immediate family” is defined as spouse,
registered domestic partner, father, mother, son, daughter, brother, sister,
grandparent, grandchild, step-mother, step-father, step-child, mother-in-law,
father-in-law, domestic partner-in-law or dependent relative living with the
employee.
C.Military Leave of Absence
1. Military leave shall be granted in accordance with the provisions of
Federal and State law. All employees entitled to military leave shall give the
Department Head an opportunity within the limits of military regulations to
determine when such leave shall be taken. Whenever possible, the employee
involved shall notify the Department Head of such leave request (10) working
days in advance of the beginning of the leave.
2. In addition to the provisions of State law, the City shall continue to
provide eligible employees on military leave, the monthly flex dollar allowance
under the cafeteria plan and disability and life insurance and retirement (if
applicable) for the first (3) months of military leave. During said period, the
employee shall be required to pay to the City the amount that exceeds the
monthly flex dollar allowance (if applicable).
3. After the first (3) months of military leave, the employee may
continue said benefits at his cost.
D.Pregnancy Disability Leave of Absence
1. An employee who is disabled due to pregnancy shall be granted a
pregnancy disability leave as provided by the State of California and the Federal
Family Medical Leave Act. The employee may elect to take a lesser period of
leave.
2. Disabilities arising out of pregnancy shall be treated the same as
other temporary disabilities in terms of eligibility for, or entitlement to, leave with
or without pay.
E.Family Leave - Upon a demonstration of need and subject to the following
conditions, an employee may take leave or unpaid leave to care for his newborn
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infant, whether through parentage or adoption, or to care for a seriously ill or
injured member of the employees "immediate family" as defined in Section 6.
1. Proof of the birth or adoption of a newborn infant or the serious
illness/injury of the family member must be submitted to the City.
2. Requests for family leave must be submitted in writing to the
employee's supervisor at the earliest possible date proceeding the time when the
leave is to begin.
3. Operational needs of the City shall be relevant in determinations
regarding the granting of family leave in accordance with the provisions of State
and Federal Family Leave laws.
4. In the event of an extended family leave, the employee may be
required to periodically report on the status of the situation giving rise to the
leave.
5. Family leave may be granted only upon the recommendation of the
Department Head and approval of the City Manager consistent with the
provisions of State and Federal Family Leave laws.
F.Catastrophic Leave - The purpose of the Catastrophic Leave Pool is to
enable full time employees to receive and donate vacation, administrative leave,
and CTO leave credits on an hour for hour basis to assist employees who have
no leave and who will suffer a financial hardship due to prolonged illness or injury
to themselves or a member of their immediate family. Sick Leave is excluded
from this program.
The following conditions shall apply to Catastrophic Leave:
1. Catastrophic Leave will be available only to employees who have
exhausted their own paid leave through bona fide serious illness or accident.
2. The leave pool shall be administered by the Finance Department.
3. Employees must be in regular full-time appointed positions to be
eligible to receive catastrophic leave.
4. Employees receiving Long-Term Disability payments are excluded
from receiving catastrophic leave under this program.
5. All donations are to be confidential, between the donating
employee and the Finance Department.
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6. Employees donating to the pool must have 40 hours of paid leave
available after making a donation.
7. Donating employees must sign an authorization, including
specifying the specific employee to be the recipient of the donation.
8. Donations will be subject to applicable tax laws.
9. The availability of Catastrophic Leave shall not delay or prevent the
City from taking action to medically separate or disability retire an employee.
10. Catastrophic Leave due to illness or injury of an immediate family
member may require medical justification as evidenced by a Physician’s
Statement that the presence of the employee is necessary.
11. Catastrophic Leave due to the illness or injury of the employee will
require medical justification as evidenced by a Physician’s Statement as to the
employee’s condition.
SECTION 23: HEALTH WELLNESS PROGRAM (Medical Maintenance
Examination & Wellness Program)
The City shall reimburse Employee, as a medical benefit, for Employee’s actual
documented expenses for medical maintenance exams or the cost of
participation in wellness programs, in an amount not to exceed $500 per fiscal
year for the Marine Safety Lieutenant and in an amount not to exceed $400 for
the Marine Safety Officer classification, subject to the City’s normal
reimbursement processes and requirements such expenses. Reimbursable
expenses shall include, but not be limited to, actual out of pocket expenses for
annual physical examinations or other medical tests or examinations,
participation in weight loss, stop smoking, fitness or other similar programs, or
membership in a health or fitness club. All reimbursements shall be subject to the
review and approval of the City Manager or his/her designee.
SECTION 24: MISCELLANEOUS
Layoff: The City is to give Association (45) days prior notice before the effective
date of any layoffs. During this (45) day period, the City will, upon request, meet
and confer on the impact of the layoffs.
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SECTION 25: TERM
The Memorandum of Understanding shall remain in full force and effect from
July 1, 2019 until midnight June 30, 2021.
SECTION 26: APPEALS
A. Employees shall be allowed to appeal written reprimands to the Personnel
Officer. Such appeals shall be filed within (14) calendar days. The decision of
the Personnel Office shall be final.
B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation
shall be interpreted to allow employees to present evidence showing the absence
was for good cause and that circumstance prevented them from contacting the
City.
SECTION 27: REOPENER
City and Association agrees to reconvene during the terms of this MOU to discuss
all fringe benefits, including but not limited to health plans, the implementation of
HSA or HRA programs for employee and retiree medical premiums.
SECTION 28: RATIFICATION
This Memorandum of Understanding is subject to approval and adoption by the
City Council and ratification by the required number of the duly authorized
representatives of the Association. Following such approval and adoption, the
Memorandum of Understanding shall be implemented by the appropriate
resolution(s), ordinance(s), or other written action of the City Council.
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IN WITNESS HEREOF, the parties have hereto caused this Memorandum of
Understanding to be executed
Date:
Jill R. Ingram, City Manager
Date:
Patrick Gallegos, Assistant City Manager
CITY OF SEAL BEACH MARINE SAFETY ASSOCIATION:
Date:
Chris Pierce President
Date:
Nick Bolin Vice President
Date:
Gregorio Daniel Teamsters
Adopted by Resolution No. 6772XXXX
EXHIBIT B
Seal Beach Marine Safety Management
Association (SBMSMA)
MEMORANDUM OF UNDERSTANDING
ADOPTED: October 23, 2017February 24, 2020
EXPIRES: June 30, 20192021
Resolution Number 6772 SBMSMA
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TABLE OF CONTENTS
SECTION 1: RECOGNITION .................................................................................5-6
SECTION 2: CITY RIGHTS
Rights/Responsibilities..................................................................................6-7
SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY
INSURANCE
A. Health Insurance Coverage........................................................................8
B. Life Insurance .............................................................................................9
C. Income Continuation..............................................................................9
D. Annual Dermatological Screening .........................................................9
SECTION 4: RETIREMENT HEALTH INSURANCE .............................................10
SECTION 5: SICK LEAVE ......................................................................................11
SECTION 6: VACATION TIME ..........................................................................11-13
SECTION 7: HOLIDAYS ..................................................................................13-154
SECTION 8: RETIREMENT ....................................................................................16
SECTION 9: OVERTIME AND CALL OUT PAY ............................................15-166
SECTION 10: COMPENSATORY TIME OFF ........................................................17
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SECTION 11: PROVISIONAL APPOINTMENTS...................................................17
SECTION 12: SENIORITY BONUS ........................................................................17
SECTION 13: AUTOMOBILES AND MILEAGE ....................................................17
SECTION 14: ADMINISTRATIVE LEAVE ..............................................................17
SECTION 15: LIMITATIONS ...................................................................................18
SECTION 16: DEFERRED COMPENSATION .......................................................18
SECTION 17: BILINGUAL COMPENSATION ..................................................17-18
SECTION 18: CERTIFICATION PAY ……………………………………………...18
SECTION 19: WORK SCHEDULE .........................................................................19
SECTION 20: TUITION REIMBURSEMENT.....................................................18-19
SECTION 21: COMPENSATION PLAN
A. Basic Compensation Plan........................................................................19
B. Advancement within Salary Ranges...................................................19-20
C. Salary Increases.......................................................................................20
D. Salary Decreases.....................................................................................21
E. Adjustments of Salary Ranges.................................................................21
F. Salary and Benefits on Suspension .........................................................21
G. Salary Adjustments During Term of MOU..........................................20-21
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SECTION 22: LEAVES OF ABSENCE
A. Authorized Leave of Absence Without Pay........................................21-22
B. Bereavement Leave ................................................................................22
C. Military Leave of Absence.......................................................................22
D. Pregnancy Disability Leave of Absence .................................................23
E. Family Leave.......................................................................................22-23
F. Catastrophic Leave .............................................................................23-24
SECTION 23: HEALTH WELLNESS PROGRAM…………………………………24
SECTION 243: MISCELLANEOUS
Lay-off.............................................................................................................25
SECTION 254: TERM ..............................................................................................25
SECTION 265: APPEALS .......................................................................................25
SECTION 276: REOPENER....................................................................................25
SECTION 287: RATIFICATION ..............................................................................25
Resolution Number SBMSMA
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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF SEAL BEACH
MARINE SAFETY MANAGEMENT ASSOCIATION
SECTION 1: RECOGNITION
A. Pursuant to the provisions of Employee-Employer Relations Resolution
5242, as amended, the City of Seal Beach (hereinafter called the "City" and/or
"Employer" and/or “Management” interchangeably) has recognized for the
purpose of this Memorandum of Understanding (MOU), the Seal Beach Marine
Safety Management Association (SBMSMA) an association of employees of the
City of Seal Beach, hereinafter referred to as "Association".
B. The City recognizes the Association as the representative of the
employees in the classification and assignments set forth in Section 21.G below
for the purpose of meeting its obligations under this MOU, the Meyers-Milias-
Brown Act, Government Code Section 3500 et seq., when City rules, regulations,
or laws affecting wages, hours and/or other terms and conditions of employment
are amended or changed.
C. The City agrees that the recognized representatives of Association not to
exceed 3 in number shall be entitled to meet and confer with City during said
recognized representatives' normal working hours without suffering any loss in
pay while absent from the duties for such purpose. City also agrees that such
representatives may utilize a total of not more than 3 hours per year without
suffering any loss in pay for such absence for the purpose of meeting with
employees who are members of the Association and/or other officers of the
Association.
D. City recognizes Association's right to appoint or elect representatives to
meet and confer with City's management representatives on salaries, wages, and
terms and conditions of employment. Association agrees to notify City in writing
as to the identity of the representatives and of subsequent appointments, if any.
Association and City agree that employees appointed or elected as Association
representatives shall be required to work full time.
E. It is recognized and agreed that no Association business and/or meetings
will be conducted and/or attended by employees of City during their respective
hours of duty and work unless specified herein.
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F. Representatives and/or officers of Association shall not interrupt the work
of any employee of City at any time to conduct business or other matters
connected with Association without prior consent of Management.
G. This document supersedes all prior Memoranda of Understanding and
verbal agreements between the parties hereto.
SECTION 2: CITY RIGHTS
A.Rights/Responsibilities - This City reserves, retains and is vested with
solely and exclusively, all rights of management which have not been expressly
abridged by specific provisions of this MOU or by law to manage the City, as such
rights existed prior to the execution of this MOU. The sole and exclusive rights of
management, as they are not abridged by this Agreement or by law, shall include
but not be limited to, the following rights:
1. To manage the City generally and to determine the issues of policy.
2. To determine the existence or nonexistence of facts which are the
basis of the management decision(s).
3. To determine the necessity and organization of any service or activity
conducted by the City and expand or diminish services.
4. To determine the nature, manner, means and technology and extent
of services to be provided to the public.
5. To determine methods of financing.
6. To determine types of equipment or technology to be used.
7. To determine and/or change the facilities, methods, technology,
means, organizational structure and size and composition of the work force and
allocate and assign work by which the City operations are to be conducted.
8. To determine and change the number of locations, relocations, and
types of operations, processes and materials to be used in carrying out all City
functions including, but not limited to, the right to contract for or subcontract any
work or operation of the City.
9. To assign work to and schedule employees in accordance with any
requirements set forth in this MOU, and to establish and change work schedules
and assignments upon reasonable notice insofar as such changes do not conflict
with this MOU.
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10. To layoff employees from duties because of lack of work or funds, or
under conditions where continued work would be ineffective or non-productive.
11. To establish and modify productivity and performance programs and
standards.
12. To discharge, suspend, demote, reprimand, withhold salary increases
and benefits, or otherwise discipline employees for cause.
13. To determine minimum qualifications, skills abilities, knowledge,
selection procedures and standards, job classifications and to reclassify employees
in accordance with this MOU and applicable resolutions and codes of the City.
14. To hire, transfer, promote and demote employees for non-disciplinary
reasons in accordance with the MOU and applicable resolutions and codes of the
City.
15. To determine policies, procedures and standards for selection,
training and promotion of employees in accordance with this MOU and applicable
resolutions and codes of the City.
16. To establish reasonable employee performance standards including
but not limited to, quality and quantity standards and to require compliance
therewith.
17. To maintain order and efficiency in its facilities and operation.
18. To establish and promulgate and/or modify rules and regulations to
maintain order and safety and which are not in contravention with the Agreement.
19. To restrict the activity of an employee organization on municipal
property and on municipal time except as set forth in this MOU.
20. To take any and all necessary action to carry out the mission of the
City in emergencies.
B. Where the City is required to make changes in its operations because of the
requirements of law, whenever the contemplated exercise of City Rights shall
impact the wages, hours and other terms and conditions of employment of the
bargaining unit, the City agrees to meet and confer in good faith with
representatives of the Association regarding the impact of the contemplated
exercise of such rights prior to exercising such rights, unless the matter of the
exercise of such rights is provided for in this MOU.
SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY
INSURANCE
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A.Health Insurance Coverage
1. The City shall contribute to the cost of medical coverage for each
eligible employee and his/her dependents, an amount not to exceed the California
Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum
contribution. For calendar year 20172019, CalPERS has established the minimum
PEMHCA contribution at $128 136 per month per employee.
2. The City shall contribute an equal amount towards the cost of medical
coverage under PEMHCA for both active eligible employees and eligible retirees.
3. The City shall implement a full flex cafeteria plan for eligible
employees in accordance with the criteria provided to the Association during
negotiations. For employees participating in the City’s cafeteria plan, each
employee shall receive a monthly flex dollar allowance to be used for the purchase
of benefits under the cafeteria plan. Beginning January 1, 20172019, the monthly
flex dollar allowance shall be:
For Employee only $ 832862.8211/month
For Employee and 1 dependent $
1,286.971332.24/month
For Employee and 2 or more dependents $
1,664.291722.83/month
4. A portion of the monthly flex dollar allowance is identified as the City’s
contribution towards PEMHCA. Thus, for example, in calendar year 20172019, an
employee only monthly flex dollar allowance is $832.82862.11, of that
$832.82862.11; $128 136 has been designated by the City as its required
PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be
used in accordance with the terms of the City’s cafeteria plan.
5. Effective January 1, 20172020, and every January 1st thereafter
during the term of this agreement, the City shall increase the contribution amounts
above by the average percentage of increase for basic plans published by
CalPERS which sets health insurance premiums for the coverage year.
6. Employees meeting the waiver criteria and electing to waive
enrollment in the City’s cafeteria plan are eligible to receive $350 per month
beginning January 1, 20179 (upon showing proof of medical insurance coverage
under an alternative plan). Election forms are available in the Human Resources.
7. Full-time employees covered by this MOU who have completed 30
days of uninterrupted service shall be enrolled in the cafeteria plan on the first day
of the next succeeding month.
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8. Employees who change classification from full-time to part-time
provisional, hourly or seasonal shall not be eligible for participation in the cafeteria
plan.
9. City shall not contribute to the cafeteria plan for any employee during
any month the employee is on leave of absence without pay or who is absent from
regular duties without authorization, for a full calendar month. City shall contribute
to the cafeteria plan for eligible employees receiving temporary payments from
Workers Compensation Insurance.
B.Life Insurance
Employees covered by this agreement shall receive a $50,000 term life
insurance policy paid by the City. Said insurance shall become effective after the
employee has completed 30 days of uninterrupted service with said employee to
be enrolled in the program on the 1st day of the next succeeding month.
C.Income Continuation
Employees covered by this Agreement shall receive a policy to provide for
income continuation of 66.67% of the employee's monthly salary, up to a
maximum of $5,000 per month, whichever is lesser, paid by the City. Said
insurance shall become effective after the employee has completed 30 days of
uninterrupted service with said employee to be enrolled in the program on the 1st
day of the next succeeding month. Said income continuation shall commence on
the 3lst day of sickness or other bona fide absence or upon expiration of sick
leave, whichever occurs later, and continuing thereafter while the employee is
absent from work for a period of up to age 65.
D.Annual Dermatological Screening
The City will provide employees with one (1) annual dermatological (skin cancer)
screening at no cost to employees. Screening will be provided by Beach
Dermatology located at 500 Pacific Coast Highway, Suite 212 in Seal Beach and
must be scheduled by the employee. Any treatment deemed necessary
following the exam shall be scheduled by the employee through the employee’s
provider of choice using the employee’s insurance. All medical billing for the
screening services will be forwarded for payment to the City of Seal Beach by
Beach Dermatology.
SECTION 4: RETIREMENT HEALTH INSURANCE
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A. Employees covered by this Agreement shall have the option upon
retirement, to continue participation in the City's health insurance program at the
employee's expense.
B. Employees in the Marine Safety Lieutenant classification who retire after
December 31, 2007, and on or before December 31, 2009, with 20 or more
combined years of employment with the City shall, upon retirement, be provided
with individual and eligible dependent medical insurance coverage. The City
shall contribute monthly to the cost of the selected coverage consistent with the
appropriate level as specified in Section 3 - A in these Terms and Conditions.
C. Employees in the Marine Safety Lieutenant classification, who were
hired before January 1, 2008 by the City, and who retire after December 31,
2009, with 20 or more combined years of employment with the City shall, upon
retirement, be provided with individual medical insurance coverage. If said
employee has 30 or more combined years of employment with the City upon
retirement, eligible dependent medical insurance coverage shall also be provided
at the rate of (a) the average of the 2 lowest cost medical care plans offered by
CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the
retired employee becomes Medicare eligible, the City’s contribution will be
capped at the rate of (a) the average of the 2 lowest cost Medicare supplement
plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare
supplement plan, whichever is greater.
D. Employees in the Marine Safety Officer classification covered by this
Agreement who were hired before April 13, 2009 by the City, have 20 or more
combined years of employment with the City, have reached 55 years of age, and
retire after December 31, 2010, shall be provided with individual medical
insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or
more combined years of employment with the City upon retirement, eligible
dependent medical insurance coverage shall also be provided capped at the
Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents
medical insurance is identified as the City’s contribution towards PEMHCA.
E. On or after January 1st 2008, the City shall contribute to the cost of
medical coverage for each eligible retiree and dependents, an amount not to
exceed the California Public Employees’ Medical and Hospital Care Act
(PEMHCA) minimum contribution.
F. In all cases, the City's contribution for eligible dependent coverage for
retirees shall terminate with the death of the retiree.
G. In the event an eligible retired employee resides in an area where the
health plans provided by the City are not in effect, that retired employee shall be
entitled to receive in cash each month an amount equal to the City flex
contribution at time of retirement.
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SECTION 5: SICK LEAVE
A. All full-time employees covered by this MOU shall accrue sick leave at the
rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up
to and including 520 hours. Except as otherwise provided in this MOU, no
employee shall receive further accruals once the 520 hour maximum is reached.
B. The Department Head may require employees to present proof of illness
for sick leaves in excess of 3 working days.
C. All employees in the Marine Safety Lieutenant classification, upon
termination of employment with the City, all compensable leave hours will be paid
to the employee at the employee's base rate of pay. Sick leave balances which
have not been converted to leave time will be paid to the employee upon
termination at 25% of the employee's base rate of pay.
D. All employees in the Marine Safety Officer classification except as
otherwise provided, employees shall not be eligible for any payment for sick
leave balances upon termination.
E. Employees who are on authorized leaves of absence, without pay, shall
not accrue sick leave hours during said leaves of absence.
F. Sick leave balances may not be used to defer a disability retirement.
SECTION 6: VACATION TIME
A.Marine Safety Officers covered by this Agreement, have passed the
employee probationary period (as defined in the Personnel Rules and
Regulations, Section 6.01) shall be granted a vacation with pay of approximately
80 hours per year up to a maximum of approximately (160) hours per year.
B. All employees in the Marine Safety Lieutenant classification who shall
have at least three (3) years of continuous service shall be entitled to eight (8)
additional hours of vacation for each year of full-time continuous service in
excess of three (3) years. The vacation accrual schedule for mid-management
employees is as follows:
Years
Service
Vacation
Hours
Earned
Maximum Hourly
Accrual Rate / Pay
Period Bi-Weekly
Annual
Vacation
Hours
Maximum
Vacation
Accrual
1 80 3.0769 80 160
2 80 3.0769 80 160
3 80 3.0769 80 160
4 88 3.3846 88 200
5 96 3.6923 96 200
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6 104 4.0000 104 200
7 112 4.3044 112 200
8 120 4.6154 120 200
9 128 4.9231 128 240
10 136 5.2308 136 240
11 144 5.5385 144 240
12 152 5.8462 152 240
13 160 6.1538 160 240
C. All employees in the Marine Safety Officer classification who shall have
at least (5) Years of continuous service, shall be entitled to eight (8) additional
hours of vacation per year of full-time continuous service for each year of service
in excess of five (5) years up to a maximum of approximately 160 hours per year.
D. The vacation accrual schedule is as follows:
Years
Service
Vacation
Hours
Earned
Maximum Hourly
Accrual Rate / Pay
Period Bi-Weekly
Annual
Vacation
Hours
1 80 3.0769 80
2 80 3.0769 80
3 80 3.0769 80
4 80 3.0769 80
5 80 3.0769 80
6 88 3.3846 88
7 96 3.6923 96
8 104 4.0000 104
9 112 4.3076 112
10 120 4.6153 120
11 128 4.9230 128
12 136 5.2307 136
13 144 5.5384 144
14 152 5.8461 152
15 160 6.1538 160
E. All employees in the Marine Safety Officer classification shall only be
allowed to accrue a maximum of 240 hours of vacation. Once this maximum is
reached, all further accruals will cease. Vacation accruals will recommence after
the employee has taken vacation and the employee's accrued hours drop below
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the maximum. The maximum can only be exceeded with the approval of the City
Manager in writing.
F. Employees covered by this agreement considered as hourly, part-time
and/or seasonal employees shall not be eligible for paid vacations.
G. Employees covered by this agreement who are on leaves of absence,
without pay, shall not accrue vacation leave hours during said leaves of absence.
H. All employees in the Marine Safety Officer classification not more than
once in each fiscal year, who have completed at least 1 year of continuous
service shall, upon request, receive compensation for up to 50 80 hours of
accrued vacation time. provided that the employee has taken an equal amount of
time off within that fiscal year.
I. Employees are encouraged to use at least the amount of vacation hours
earned each fiscal year. Those employees who have been credited with
preexisting leave hours are expected to use a portion of the excess as leave
time, in addition to the new vacation hours, each year until the maximum accrual
is met. The City recognizes that a number of long-term employees have accrued
substantially more leave time than shorter-term employees, and that it will likely
take them significantly longer to achieve this goal. It is the intent of this section
to balance the personal interests of the employee with the financial concerns of
the City; as such, significant progress toward reaching the maximum accrual
amounts may be deemed a success.
J. Vacation leave time shall not be approved until such time as it has been
earned, unless prior, special arrangements have been made with the City
Manager. Vacation leave shall be requested by the employee prior to the start
of the vacation leave period. Such vacation leave to be taken shall be subject to
the prior approval of the Department Head, or designee, subsequent to
consideration of the departmental workload and other staffing considerations,
such as but not limited to, the previously approved vacation schedule of other
employees, sick leave and position vacancies.
K. All employees in the Marine Safety Lieutenant classification not more
than once in each fiscal year, an employee who has completed at least one year
of continuous service shall, upon request, receive compensation for up to 80 120
hours of accrued vacation time. provided that the employee has taken (50) hours
of vacation time off within that fiscal year. An employee shall also, upon request,
receive compensation for up to (120) hours of accrued vacation time provided
that the employee has taken (80) hours of accrued vacation time off within that
fiscal year.
K. Employees covered by this Agreement shall cease accruing general leave
time effective the first payroll period in December, 1997. Previously earned time
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shall be used/ compensated for as follows: Upon separation of employment with
the City, all compensable hours will be paid to the employee at the employee's
then current base rate of pay.
SECTION 7: HOLIDAYS
A. The City agrees to grant all full-time Marine Safety Association
employees a full shift pay for each holiday recognized by City. Every full-time
employee of the City shall be granted the following holidays with pay:
Holiday Date
New Year’s Day January 1st
Martin Luther King Day 3rd Monday in January
Presidents’ Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4th
Labor Day First Monday in September
Veteran’s Day November 11th
Thanksgiving Day Fourth Thursday in November
Calendar day following Thanksgiving Day
Christmas Eve December 24th
Christmas Day December 25th
*Floating Holiday (discretion of employee)
Total of 12 holidays annually
*Floating Holiday must be taken during each fiscal year (July 1st through June 30th).
Floating holidays must be approved in advance by the Department Head.
B. When a holiday falls on a Sunday, the next day (Monday) shall be observed
as a holiday. When a holiday falls on a Saturday, the preceding day (Friday) shall
be observed as a holiday.
CB. When a holiday falls on a full-time employee’s regularly scheduled day off,
the employee shall receive compensatory time off for a full shift in lieu of holiday
pay, in keeping with other provisions of this MOU.
Example: Employee A normally works a 4/10 schedule, and a
holiday falls on a Monday, Tuesday, Wednesday,
Thursday, or Friday, Employee A would receive (10)
hours of compensatory time off.
DC. A Marine Safety Lieutenant and Marine Safety Officer who is required to
work on a holiday shall receive pay computed at 1½ times the employees' base
hourly rate for the number of hours actually worked.
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Example: Employee A works 6 hours on Christmas Day. Employee A
would earn pay computed as follows:
Hours Pay Rate
Full-shift holiday pay base hourly rate
6 hours work pay regular hourly rate or overtime
hourly rate, as applicable under MOU
E.Holiday Closures – The City Manager may designate up to five (5) specific
work days in each calendar year between Christmas Day and New Year’s Day
during which employees may be required to take time off, charged to leave without
pay, the employee’s accumulated compensatory time, vacation, floating holidays, or
a combination thereof, as determined by the affected employee. The days must be
consecutive for the employee, but may differ between employees. Employees who
do not have sufficient accumulated time off in their account to cover the required
time off may request, and will be granted, sufficient advance on their vacation
accrual to cover the uncovered balance. This advance will be recovered with the
next vacation accruals earned by the employee. Time off of work under this
provision shall not be deemed a layoff.
B. If an employee is required to work on a City Manager designated closure
work day, the employee will receive pay computed at 1½ times the employees’
basic hourly rate for the number of hours actually worked.
Example: Employee A normally works a 9/80 schedule, and is required to
work 4 hours on a City Manager designated holiday closure work
day on December 28, 2016. Employee A would earn pay
computed as follows:
Hours Pay Rate
4 hours work pays 1½ times the hourly rate, as applicable under
the MOU
5 hours leave time Compensatory time, vacation, floating holiday,
or combination thereof
SECTION 8: RETIREMENT
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A. The retirement program provided by the City shall consist of a pooled
Public Employee's Retirement System (PERS) plan, which includes the
following Government Code provisions:
Section 20042 One Year Final Compensation
Section 20965 Credit of Unused Sick Leave
Section 21024 Military Service Credit
B. All employees incumbent in the Marine Safety Association shall
participate in the 3% @ 50 formula plan for Local Safety Members.
C. The Marine Safety Association “PERS Classic” employees shall pay 9% of
their CALPERS required contribution of their compensation earnable.
D. New employees/members hired on or after January 1, 2013 as defined by
The Public Employees’ Pension Reform Act (PEPRA) will be hired at the
retirement formula in accordance with the PEPRA and other legislation.
SECTION 9: OVERTIME AND CALL OUT PAY
A. The following section pertains to the position of Marine Safety Lieutenant
and Marine Safety Officer:
1. If work beyond normal workday, workweek or work period is required, the
employee who may be asked to perform such overtime shall be notified of the
apparent need for such overtime as soon as practicable prior to when the
overtime is expected to begin.
2. Call out and overtime pay shall be paid at the rate of time and one-half the
hourly rate. Minimum "call out" time (when returning to work) shall be 3 hours.
Call out time shall start when employee is called to service.
3. Overtime will be computed by dividing the employee's regular monthly
salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to
be submitted and computed with the regular payroll.
4. Notwithstanding any provision of this Section, the employee shall be
entitled to select either compensated overtime or compensatory time off subject
to budget limitations, departmental rules and regulations, and Section 11 of this
MOU.
SECTION 10: COMPENSATORY TIME OFF (CTO)
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The maximum (cap) of CTO is (120) hours. Compensatory Time earned in excess
of (120) hours will be paid as overtime during the pay period accrued.
SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS
A. An employee, when authorized by the City Manager, may receive a
provisional appointment to a higher classification to fill a temporary vacancy. The
employee, when so appointed, must perform the duties and assume the
responsibilities of the higher classification for (80) consecutive working hours and
shall be paid according to the step in the assigned salary range of the new
position which is a minimum of 5% higher than the salary received before the
provisional appointment (not to exceed the top step).
B. When necessary and in the best interest of the City, the City Manager may
provisionally assign an employee to a higher level of duty and responsibility than
provided for in the employee's assigned classification which is not otherwise a
part of an adopted classification. In the case of such an assignment, the
employee must perform the higher level of duties for (80) consecutive working
hours; thereafter the employee shall receive additional compensation of 5% so
long as the assignment is authorized by the City Manager.
SECTION 12: SENIORITY BONUS
Employees who have achieved (10) years of uninterrupted employment with the
City shall receive a 5% increase in base salary effective on the l0th anniversary
of their employment.
Employees who have achieved twenty (20) years of uninterrupted employment
with the City shall receive a 2.5% increase in base salary (above the previously-
described 5% increase at 10 years) effective on the 20th anniversary of their
employment.
SECTION 13: AUTOMOBILES AND MILEAGE
Employees covered by this MOU, utilizing their privately-owned automobiles for
City business on a non-regular basis, shall be entitled to reimbursement for costs
incurred at the mileage rate established by the Internal Revenue Service (IRS).
SECTION 14: ADMINISTRATIVE LEAVE
Effective the 1st payroll period in July 2017, and every July thereafter:
A.Marine Safety Lieutenant shall be entitled to (40) hours of administrative
leave during each fiscal year.
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BA.The Marine Safety Lieutenant and Marine Safety Officers shall be
entitled to the equivalent of (2) work days of administrative leave during each
fiscal year.
CB. Administrative leave hours may not be carried forward to succeeding
years nor may they be turned in for cash value.
SECTION 15: LIMITATIONS
A. No employee who is receiving Workers’ Compensation payments and
benefits is eligible to receive overlapping benefits (except life insurance) stated in
this MOU.
B. City shall not make any monthly payments for premiums for any insurance
benefit listed in this MOU, or uniform allowance, supplemental pay of any type
and/or type of bonus on behalf of or to any employee who has been absent
without authorization during entire said month or for any employee who has
terminated for any reasons whatsoever or who is on leave of absence without
pay of who is suspended from duties without pay for the entire said month.
SECTION 16: DEFERRED COMPENSATION
For the classification of Marine Safety Lieutenant, the City shall contribute the
equivalent to 3.5% of base salary per payroll period into a deferred compensation
program for each employee this classification.
For the classification of Marine Safety Lieutenant and Marine Safety Officer, the
City shall contribute the amount of $40 per payroll period into a deferred
compensation program
SECTION 17: BILINGUAL COMPENSATION
A. Upon the recommendation of a department director, the City Manager
may award a bilingual compensation bonus of $52.50 per payroll period to those
employees in positions determined to require bilingual skills.
B. The City Manager shall require the taking of competency tests to certify
the employee as eligible for bilingual compensation based on the employee's
proficiency in speaking the language determined to be required. Such
certification shall be a condition precedent to qualifying for bilingual pay.
SECTION 18: CERTIFICATION PAY
A. Employees who possess and maintain valid certification for
CPR/AED/First Aid Instructor, as well as a minimum certification of EMT, will
receive $500 annually each December 1stthe first pay day in November.
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B. Employees who possess a United States Coast Guard (USCG) Captains
License will receive $250 annually each December 1stthe first pay day in
November.
SECTION 19: WORK SCHEDULE
A. At the discretion of the City Manager, work schedules may be altered as
needed to accommodate service demand levels of the residents of the City of
Seal Beach.
SECTION 20: TUITION REIMBURSEMENT
A. Higher Education Degree Programs – Marine Safety Association
employees attending accredited community colleges, universities, and trade
schools for the purpose of obtaining a higher education degree may apply for
reimbursement of tuition, books, student fees and parking. Reimbursement is
capped at the tuition rate of the Cal State University system for up to 2 semesters
of full-time, undergraduate enrollment each calendar year.
B. Reimbursement is contingent upon the successful completion of the
course. Successful completion means a grade of “C” or better for undergraduate
courses and a grade of “B” or better for graduate courses. All claims for tuition
reimbursement require prior approval and are subject to verification and approval
by the City Manager.
Example: Employee A attends California State University, Long
Beach, for the Spring 2016 2020 semester and
completes 2 (3-unit) undergraduate courses with a
grade of “C” or better. The tuition reimbursement would
be calculated as follows:
20122019/2013 2020 State University Tuition
$1,5871,665.00 (0-6 units)
Required University Fees $ 494546.00 (approx.)
Parking $ 123155.00
Books $ 300.00 (approx.)
TOTAL $2,504666.00
SECTION 21: COMPENSATION PLAN
A.Basic Compensation Plan
1. Employees covered by this MOU shall be included under the Basic
Compensation Plan. Every classification under this Plan shall be assigned a salary
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range adopted by the City Council. The salary schedule shall consist of 5 steps
within each range.
2. The first step is a minimum rate and is normally the hiring rate for the
classification. An employee may be assigned, upon appointment, to other than the
normal entering salary step within the assigned range upon the recommendation of
the Department Head and with the approval of the City Manager when it is decided
that such action is in the best interests of the City.
3. The second step, B step, is a merit adjustment which may be given at
the end of the probationary period subject to the recommendation of the
Department Head and with the approval of the City Manager.
4. The third, fourth and fifth steps are merit adjustments to encourage
an employee to improve their work and to recognize increased skill on the job.
Employees are normally eligible for these adjustments at any time after the
completion of (1) year of service at the preceding step. Each adjustment shall be
made subject to the recommendation of the Department Head and with the
approval of the City Manager.
B. Advancement within Salary Ranges
1. In order to properly compensate an employee, advancement in salary
shall be based on merit.
2. Advancement in salary shall not be automatic, but shall depend upon
increased service value of the employee to the City.
3. The Department Head and/or the employee's immediate supervisor
shall be responsible to evaluate an employee fairly in an unbiased fashion for the
determination of job performance. Advancement shall be made only upon
recommendation of the Department Head and with the approval of the City
Manager.
4. An employee should be reviewed at least once every (12) months
from the effective date of his last performance evaluation, special performance
advancement or promotion. Nothing contained herein shall restrict the Department
Head from denying the increase after evaluation, nor shall it prevent him from
recommending a special performance advancement in salary at any time when
unusual or outstanding achievement has been demonstrated.
C. Salary Increases
1. Promotional Appointment - When an employee is promoted to a
position with a higher salary range, the employee shall be compensated at a step of
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the salary range assigned to the new position that is closest to providing a 5%
salary increase over the base salary received immediately prior to promotion.
2. Temporary Appointment - Employees assigned, in an acting capacity,
to a higher classification than the employees' present classification for a period of
not less than 80 consecutive working hours shall be entitled to temporary
appointment pay. In addition, employees who are assigned by the department
director in writing to regularly scheduled acting assignments of less than 80 hours
shall also be entitled to temporary appointment pay. Temporary appointment pay
will be retroactive to the first hour served in the higher classification and shall be
paid at a rate equal to the first step of the higher classification but in no event shall
temporary appointment pay be less than 5% more of the employee's current rate.
D. Salary Decreases - In the case of a demotion of an employee to a
classification with a lower maximum salary, such employee shall be assigned to the
appropriate salary step in the new classification as recommended by the
Department Head with the approval of the City Manager. The employee shall
retain his previous anniversary date.
E. Adjustments of Salary Ranges - When a salary range for a given
classification is revised upward or downward, the incumbents of positions and
classifications affected shall have their existing salary adjusted to the same step in
the new salary range and their anniversary date shall not be changed.
F. Salary and Benefits on Suspension - During suspension from the City
service for disciplinary cause, an employee shall forfeit all rights, privileges and
salary, except he shall not forfeit his medical health plans, including dental,
retirement plan, disability insurance or life insurance. Should such suspension be
later modified or revoked, the employee shall be entitled to receive payment for loss
of income and benefits during the period of suspension.
G. Salary Adjustments During Term of MOU
1. The salary schedule for each position classification affected is hereby
determined and established upon adoption by City Council Salary increases are as
follows:
First pay period on or following July 1st 20179. Employees shall
receive a 43% cost of living adjustment.
First pay period on or following July 1, 2018 2020 – Employees shall
receive a CPI adjustment, minimum 2% up to 34% maximum, as
measured utilizing the change in the Los Angeles – Riverside Long
Beach – Orange Anaheim County All Urban Consumers Index for the
12 months of April 20179 – April 20182020.
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Mid-Management
Grade Job Classifications
31 Marine Safety Lieutenant
Technical
Grade Job Classifications
23 Marine Safety Officer
SECTION 22: LEAVES OF ABSENCE
A.Authorized Leave of Absence Without Pay
1. Upon the Department Head's recommendation and approval of the
City Manager, an employee may be granted a level of absence without pay in
cases of an emergency or where such absence would not be contrary to the best
interest of the City, for a period not to exceed 180 working days.
2. Upon written request of the employee, the City Manager may grant
a leave of absence, with or without pay, for a period not to exceed (1) year.
3. At the expiration of the approved leave, after notice to return to
duty, the employee shall be reinstated to the position held at the time leave was
granted. Failure on the part of the employee to report promptly at such leave's
expiration and receipt of notice to return to duty shall be cause for discharge.
4. During any authorized leave of absence without pay, an employee
shall not be eligible to accumulate or receive fringe benefits, except an employee
shall receive their monthly flex dollar allowance and the City, as specifically
provided for in this MOU, shall contribute to the employee’s disability insurance
plan, and life insurance plan for the first (30) days of leave of absence.
B.Bereavement Leave
The City agrees to provide 40 hours bereavement leave with pay for death in the
immediate family. The bereavement leave shall not be chargeable to or
accumulated as sick time or leave time. “Immediate family” is defined as spouse,
registered domestic partner, father, mother, son, daughter, brother, sister,
grandparent, grandchild, step-mother, step-father, step-child, mother-in-law,
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father-in-law, domestic partner-in-law or dependent relative living with the
employee.
C.Military Leave of Absence
1. Military leave shall be granted in accordance with the provisions of
Federal and State law. All employees entitled to military leave shall give the
Department Head an opportunity within the limits of military regulations to
determine when such leave shall be taken. Whenever possible, the employee
involved shall notify the Department Head of such leave request (10) working
days in advance of the beginning of the leave.
2. In addition to the provisions of State law, the City shall continue to
provide eligible employees on military leave, the monthly flex dollar allowance
under the cafeteria plan and disability and life insurance and retirement (if
applicable) for the first (3) months of military leave. During said period, the
employee shall be required to pay to the City the amount that exceeds the
monthly flex dollar allowance (if applicable).
3. After the first (3) months of military leave, the employee may
continue said benefits at his cost.
D.Pregnancy Disability Leave of Absence
1. An employee who is disabled due to pregnancy shall be granted a
pregnancy disability leave as provided by the State of California and the Federal
Family Medical Leave Act. The employee may elect to take a lesser period of
leave.
2. Disabilities arising out of pregnancy shall be treated the same as
other temporary disabilities in terms of eligibility for, or entitlement to, leave with
or without pay.
E.Family Leave - Upon a demonstration of need and subject to the following
conditions, an employee may take leave or unpaid leave to care for his newborn
infant, whether through parentage or adoption, or to care for a seriously ill or
injured member of the employees "immediate family" as defined in Section 6.
1. Proof of the birth or adoption of a newborn infant or the serious
illness/injury of the family member must be submitted to the City.
2. Requests for family leave must be submitted in writing to the
employee's supervisor at the earliest possible date proceeding the time when the
leave is to begin.
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3. Operational needs of the City shall be relevant in determinations
regarding the granting of family leave in accordance with the provisions of State
and Federal Family Leave laws.
4. In the event of an extended family leave, the employee may be
required to periodically report on the status of the situation giving rise to the
leave.
5. Family leave may be granted only upon the recommendation of the
Department Head and approval of the City Manager consistent with the
provisions of State and Federal Family Leave laws.
F.Catastrophic Leave - The purpose of the Catastrophic Leave Pool is to
enable full time employees to receive and donate vacation, administrative leave,
and CTO leave credits on an hour for hour basis to assist employees who have
no leave and who will suffer a financial hardship due to prolonged illness or injury
to themselves or a member of their immediate family. Sick Leave is excluded
from this program.
The following conditions shall apply to Catastrophic Leave:
1. Catastrophic Leave will be available only to employees who have
exhausted their own paid leave through bona fide serious illness or accident.
2. The leave pool shall be administered by the Finance Department.
3. Employees must be in regular full-time appointed positions to be
eligible to receive catastrophic leave.
4. Employees receiving Long-Term Disability payments are excluded
from receiving catastrophic leave under this program.
5. All donations are to be confidential, between the donating
employee and the Finance Department.
6. Employees donating to the pool must have 40 hours of paid leave
available after making a donation.
7. Donating employees must sign an authorization, including
specifying the specific employee to be the recipient of the donation.
8. Donations will be subject to applicable tax laws.
9. The availability of Catastrophic Leave shall not delay or prevent the
City from taking action to medically separate or disability retire an employee.
Resolution Number SBMSMA
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10. Catastrophic Leave due to illness or injury of an immediate family
member may require medical justification as evidenced by a Physician’s
Statement that the presence of the employee is necessary.
11. Catastrophic Leave due to the illness or injury of the employee will
require medical justification as evidenced by a Physician’s Statement as to the
employee’s condition.
SECTION 23: Health Wellness Program Medical Maintenance Examination &
Wellness Program.
The City shall reimburse Employee, as a medical benefit, for Employee’s actual
documented expenses for medical maintenance exams or the cost of
participation in wellness programs, in an amount not to exceed $500 per fiscal
year for the Marine Safety Lieutenant and in an amount not to exceed $400 for
the Marine Safety Officer classification, subject to the City’s normal
reimbursement processes and requirements such expenses. Reimbursable
expenses shall include, but not be limited to, actual out of pocket expenses for
annual physical examinations or other medical tests or examinations,
participation in weight loss, stop smoking, fitness or other similar programs, or
membership in a health or fitness club. All reimbursements shall be subject to the
review and approval of the City Manager or his/her designee.
SECTION 2324: MISCELLANEOUS
Layoff: The City is to give Association (45) days prior notice before the effective
date of any layoffs. During this (45) day period, the City will, upon request, meet
and confer on the impact of the layoffs.
SECTION 2425: TERM
The Memorandum of Understanding shall remain in full force and effect from
July 1, 2017 2019 until midnight June 30, 20192021.
SECTION 2526: APPEALS
A. Employees shall be allowed to appeal written reprimands to the Personnel
Officer. Such appeals shall be filed within (14) calendar days. The decision of
the Personnel Office shall be final.
B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation
shall be interpreted to allow employees to present evidence showing the absence
was for good cause and that circumstance prevented them from contacting the
City.
Resolution Number 6772 SBMSMA
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SECTION 2627: REOPENER
City and Association agrees to reconvene during the terms of this MOU to discuss
all fringe benefits, including but not limited to health plans, the implementation of
HSA or HRA programs for employee and retiree medical premiums.
SECTION 2728: RATIFICATION
This Memorandum of Understanding is subject to approval and adoption by the
City Council and ratification by the required number of the duly authorized
representatives of the Association. Following such approval and adoption, the
Memorandum of Understanding shall be implemented by the appropriate
resolution(s), ordinance(s), or other written action of the City Council.
IN WITNESS HEREOF, the parties have hereto caused this Memorandum of
Understanding to be executed
Date:
Jill R. Ingram, City Manager
Date:
Patrick Gallegos, Assistant City Manager
CITY OF SEAL BEACH MARINE SAFETY ASSOCIATION:
Date:
Chris Pierce President
Date:
Nick Bolin Vice President
Date:
Gregorio Daniel Teamsters
Agenda Item I
AGENDA STAFF REPORT
DATE:February 24, 2020
TO:Honorable Mayor and City Council
THRU:Jill R. Ingram, City Manager
FROM:Les Johnson, Community Development Director
SUBJECT:Opposition to the Modified Regional Housing Needs
Assessment (RHNA) Allocation Methodology Approved by
the Southern California Association of Governments
(SCAG)
________________________________________________________________
SUMMARY OF REQUEST:
That the City Council adopt Resolution 7009 opposing the modified Regional
Housing Needs Assessment (RHNA) allocation methodology approved on
November 7, 2019 by the Southern California Association of Governments
(SCAG).
BACKGROUND AND ANALYSIS:
California State law requires that each city and county plan for existing and future
housing needs through the housing element of its General Plan, which must
include planning for the number of new housing units assigned by the Regional
Housing Needs Assessment (RHNA) allocation. The upcoming RHNA for the 6th
Housing Element Cycle will cover the planning period from October 2021 to
October 2029. The Southern California Association of Governments (SCAG) is the
regional agency responsible for the development and administration of the RHNA
allocation methodology for the six counties within its jurisdiction (Orange, Los
Angeles, Imperial, Riverside, San Bernardino and Ventura). The California
Department of Housing and Community Development (HCD) is responsible for the
final determination of the total regional allocation and the methodology for
distributing the allocation among local jurisdictions in each region.
Within Orange County housing unit allocations are segmented by income levels
based upon the Area Median Income (AMI) and include very-low, low, moderate,
and above moderate categories. RHNA outcomes are supposed to be the basis
for a city’s housing goals and policies, and must be included in the city's General
Plan Housing Element Housing Element in order to receive certification by HCD.
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The 6th cycle RHNA process included direct engagement between local
governments and SCAG staff over a series of meetings and correspondence last
year. This resulted in a RHNA methodology recommended by SCAG staff.
The process leading up to the SCAG staff recommended methodology going into
the November 7, 2019 SCAG Regional Council meeting provided for a
comprehensive local public input process. Three draft 6th cycle RHNA allocation
methodology options were considered. SCAG staff conducted multiple public
hearings in an attempt to receive public input on the options and to consider
revisions or alterations. SCAG received 248 comment letters on the three
methodology options proposed with close to half of the comments provided by local
jurisdictions. Based upon the input provided, SCAG staff developed a single RHNA
allocation methodology, which was publicly introduced at a workshop conducted
on September 23, 2019. This draft methodology resulted in the following
recommended allocation of housing units to Seal Beach:
TABLE 1
INCOME LEVEL DWELLING UNITS
Very-Low Income (<50% of AMI) 38 Dwelling Units
Low Income (50-80% of AMI) 29 Dwelling Units
Moderate Income (80-120% of AMI) 35 Dwelling Units
Above Moderate Income (>120% of AMI) 80 Dwelling Units
TOTAL 182 Dwelling Units
Note: AMI varies by household size. The current Orange County AMI for a four-
person household in $97,900.
On October 7, 2019, the SCAG RHNA Subcommittee voted to send the staff
recommended RHNA methodology to the SCAG Community, Economic, and
Human Development (CEHD) Committee. On October 21, 2019, the CEHD
Committee voted unanimously to recommend that the SCAG Regional Council
submit the identified methodology to HCD.
This matter was scheduled for and introduced during the November 7, 2019 SCAG
Regional Council Meeting. However, before a vote was conducted on the staff and
committee-recommended methodology, a substitute motion for approval of a
modified methodology was introduced by City of Riverside Mayor Rusty Bailey.
The modified methodology essentially shifts approximately 75,000 of the new
housing units in the RHNA allocation away from developing areas in Riverside and
San Bernardino Counties, and pushes it towards congested, impacted, and
predominantly developed areas of Orange County. Despite a lack of detail
regarding the associated impacts, supporting documentation as to the merit of the
proposed changes, or any opportunity for informed stakeholder input, the modified
methodology introduced at the November 7, 2019 meeting was approved for
submittal to HCD by the SCAG Regional Council on a contested vote of 43-19. All
Orange County SCAG representatives voted in opposition. In an attempt to
address both the lack of proper vetting and specificity of the modified methodology,
the SCAG Regional Council directed SCAG staff to further refine the methodology
before forwarding to HCD.
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The following represents the housing unit allocation for the City of Seal Beach
based upon the modified methodology approved by the SCAG Regional Council:
TABLE 2
INCOME LEVEL DWELLING UNITS
Very-Low Income (<50% of AMI) 256 Dwelling Units
Low Income (50-80% of AMI) 200 Dwelling Units
Moderate Income (80-120% of AMI) 238 Dwelling Units
Above Moderate Income (>120% of AMI) 546 Dwelling Units
TOTAL 1240 Dwelling Units
Note: AMI varies by household size. The current Orange County AMI for a four-
person household in $97,900.
On January 13, 2020, HCD completed its review of SCAG’s modified RHNA
methodology and expressed its support. The final RHNA methodology will be
considered by SCAG’s Regional Council for final approval in March 2020. With
regard to affordable housing production, the RHNA allocation methodology initially
recommended by SCAG staff, and approved by two SCAG Committees, for the
upcoming 6th RHNA cycle would yield a target of 102 affordable units (182 total
dwelling units) for Seal Beach. In comparison, the modified RHNA methodology
approved by the SCAG Regional Council without appropriate public and
stakeholder input increases the unit count to a target of 694 affordable units (1240
total dwelling units). This total allocation represents an increase of approximately
675% over the SCAG staff recommended methodology.
Achievement of the units from the staff recommended methodology would be a
challenge while the modified methodology unit count is simply untenable. The
modified methodology allocation would fundamentally undermine the existing City
density and could compromise the City’s ability to responsibly and equitably
address quality of life, including public safety and other core services provided by
the City. The modified RHNA methodology would force the City to plan for a
number of housing units that the City’s land area and infrastructure simply could
not support. The attached resolution has been prepared for City Council
consideration, opposing the modified RHNA allocation methodology. The
Resolution also condemns the SCAG Regional Council for the way in which the
November 7, 2019 vote was conducted, and demands that they ensure that his
type of decision-making process doesn't occur in the future.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
No legal analysis is required for this item.
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FINANCIAL IMPACT:
There is no financial impact for this item.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
MEASURE BB:
This item is not applicable to Measure BB, the Seal Beach Neighborhood and
Essential Services Protection Measure.
RECOMMENDATION:
That the City Council adopt Resolution 7009 opposing the modified Regional
Housing Needs Assessment (RHNA) allocation methodology approved on
November 7, 2019 by the Southern California Association of Governments
(SCAG).
SUBMITTED BY: NOTED AND APPROVED:
Les Johnson Jill R. Ingram
Les Johnson, Community
Development Director
Jill R. Ingram, City Manager
ATTACHMENTS:
A. Resolution 7009
RESOLUTION 7009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH OPPOSING THE MODIFIED REGIONAL HOUSING NEEDS
ASSESSMENT ALLOCATION METHODOLOGY APPROVED BY THE
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS
REGIONAL COUNCIL
THE CITY COUNCIL HEREBY RESOLVES AS FOLLOWS:
WHEREAS, California Government Code Section 65584 requires that each city
and county plan for existing and projected housing need in accordance with the
Regional Housing Needs Assessment (RHNA); and,
WHEREAS, the California Department of Housing and Community Development
(HCD) is responsible for establishing the “regional determination”, or total
existing and projected housing need, for the Southern California Association of
Governments (SCAG) region, which includes the counties of Imperial, Los
Angeles, Orange, Riverside, San Bernardino, and Ventura; and,
WHEREAS, California Government Code Section 65584 requires a transparent
and collaborative process for SCAG to develop the methodology for the
distribution of the regional determination in an equitable manner among the 197
jurisdictions within the SCAG region for the 6th cycle RHNA, covering the
planning period from October 2021 through October 2029; and,
WHEREAS, between February 2019 and June 2019, SCAG staff presented to its
RHNA Subcommittee a variety of factors that could be used to develop a
proposed RHNA methodology; and,
WHEREAS, in July 2019, SCAG’s RHNA Subcommittee reviewed and
recommended the release of three RHNA methodology options for public review
and comment, which was approved for release by SCAG’s Regional Council on
August 1, 2019; and,
WHEREAS, on October 7, 2019, SCAG staff presented its recommended
methodology based on over 250 public comments to the RHNA Subcommittee,
which recommended approval of the staff recommended methodology to the
Community, Economic, and Human Development (CEHD) Committee; and,
WHEREAS, on October 21, 2019, the CEHD Committee unanimously supported
the SCAG staff recommended methodology and recommended its approval by
SCAG’s Regional Council; and,
WHEREAS, at the November 7, 2019 meeting of SCAG’s Regional Council, a
surprise substitute motion was made by the City of Riverside introducing a
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modified RHNA methodology, which would effectively shift a significant portion of
the 6th cycle RHNA allocation (approximately 75,000 housing units) away from
Riverside and San Bernardino Counties and into Orange County; and,
WHEREAS, without significant public input, the modified RHNA allocation
methodology was approved for submittal to HCD by the SCAG Regional Council
on a contested vote of 43-19 (opposed by all Orange County SCAG
representatives), despite a lack of detail regarding the associated impacts of the
proposed methodology changes, supporting documentation as to the merit of the
proposed changes, nor any opportunity for informed stakeholder input.
Furthermore, the Regional Council’s action denied the majority of Orange County
members of SCAG an opportunity to object to the introduction of the alternative
RHNA methodology, and which increased the City of Seal Beach’s RHNA
allocation from 182 housing units to 1,240 housing units (a more than 600%
increase); and,
WHEREAS, the City of Seal Beach did not receive sufficient notice or adequate
advanced notice that SCAG would entertain a substantially modified alternative
methodology; and,
WHEREAS, the modified methodology fails to adequately account for local input
and growth forecast data that, due to the late introduction by substitute motion,
was not fully analyzed for potential impacts before a vote of the SCAG Regional
Council; and,
WHEREAS, the ramifications of this sudden and un-vetted methodology shift are
further compounded by recently passed state housing laws with which local
jurisdictions are obligated to comply. Examples include, but are not limited to,
SB 35 streamlining requirements and AB 101 penalties for cities which are out of
compliance with housing element laws; and,
WHEREAS, the modified RHNA allocation methodology approved by the SCAG
Regional Council effectively sets up many Orange County jurisdictions, including
the City of Seal Beach, to fail to achieve compliance with infeasible and
impossible state housing goals and laws; and,
WHEREAS, on January 13, 2020, HCD completed its review and provided
written correspondence to SCAG in support of the modified RHNA methodology.
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
SECTION 1. The City Council of the City of Seal Beach is a strong advocate of
local control. The best means to protect the City of Seal Beach, its residents
and business owners, and to promote the goals and polices of the community is
to permit local control of property development within a consistent and
achievable set of State policy goals. The modified RHNA allocation
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methodology, as well as the manner in which it was approved by the SCAG
Regional Council, undermines the integrity of what is mandated to be a
collaborative RHNA process, negates months of local participation conducted in
good faith, and poses a significant threat of lasting damage to the City of Seal
Beach if permitted to stand. The City Council, therefore, publicly states its
opposition to the modified RHNA allocation methodology approved by the SCAG
Regional Council in November of 2019.
SECTION 2. The City Council of the City of Seal Beach publically expresses its
extreme disappointment with SCAG’s Regional Council leadership and SCAG’s
executive staff for the manner in which the November 7, 2019 meeting of the
Regional Council was conducted. Irrespective of the outcome of this decision,
SCAG’s Rules for the Conduct of Meetings were violated and Orange County
members of SCAG were denied the opportunity to object to the introduction of
the alternative RHNA methodology. First, the discussion on the alternative was
RHNA methodology was wrongfully and prematurely cut off, leaving the
members without the ability to discuss the complex and critically important issue
before them. Second, the substitute motion made to introduce the alternative
RHNA methodology was unreasonably vague and further confused through
attempts to clarify the motion. Finally, SCAG members were not permitted
sufficient opportunity to object to the complex and critically important issues
raised. As a member of SCAG, the City Council respectfully demands that
SCAG make the necessary policy changes to ensure that these types of
procedural violations never happen again.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 24th day of February, 2020 by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7009 on file in the office of
the City Clerk, passed, approved, and adopted by the Seal Beach City Council at
a regular meeting held on the 24th day of February, 2020.
Gloria D. Harper, City Clerk