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HomeMy WebLinkAboutAgenda Packet_07272020A G E N D A MEETING OF THE CITY COUNCIL Monday,July 27,2020 ~7:00 PM ALL COUNCIL MEMBERS AND STAFF WILL PARTICIPATE VIA TELECONFERENCE 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 online at www.sealbeachca.gov. 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. NOTICE REGARDING PUBLIC OBSERVATION AND PARTICIPATION IN THE CITY COUNCIL MEETING To comply with Governor Newsom’s Executive Order N-29-20 and the Amended Order and Guidance of the Orange County Health Officer issued March 18,2020 the City of Seal Beach hereby gives notice of the “means by which members of the public may observe the meeting and offer public comment”for the City Council meeting on July 27, 2020.Due to the need for social distancing and the prohibition on public gatherings set forth in the County Health Officer’s Order,all participation in the above- referenced Meeting will be by teleconference for the Members of the City Council and staff.Because of the unique nature of the emergency there will NOT be a physical meeting location and all public participation will be electronic. PUBLIC COMMENT AND PUBLIC HEARING:Members of the public may submit comments on any item ON this City Council meeting agenda via email to the City Clerk at gharper@sealbeachca.gov or via the comment icon through the online portal at https://www.sealbeachca.gov/Government/Agendas-Notices-Meeting-Videos/Council- Commission-Meetings .For those who would like to call in to make a comment regarding the Public Hearing item please sign up through the City website at https://www.sealbeachca.gov/Government/Agendas-Notices-Meeting-Videos/Council- Commission-Meetings using the microphone icon.All email comments the City Clerk receives before the start of the meeting will be posted on the City website and distributed to City Council.Email comments received after that time will be posted on the City’s website and forwarded to the City Council after the meeting. THIS NOTICE AND ELECTRONIC PARTICIPATION PROVISIONS SET FORTH IN THIS NOTICE ARE PROVIDED PURSUANT TO SECTION 3 OF EXECUTIVE ORDER N-29-20. CALL TO ORDER 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 •100th Birthday Recognition for Thelma Kieffer •Proclamation to BlueSea Care Services •IT Update •Seal Beach COVID-19 Local Emergency Review •Funding Sources Available for COVID-19 Related Expenses –UPDATE PUBLIC COMMUNICATIONS (EMAIL ONLY) At this time members of the public may address the Council regarding the items on this City Council meeting agenda.Pursuant to the Brown Act,the Council cannot discuss or take action on any items not on the agenda unless authorized by law. Those members of the public wishing to provide comment are asked to send comments via email to the City Clerk at gharper@sealbeachca.gov or via the comment icon on the City website at https://www.sealbeachca.gov/Government/Agendas-Notices-Meeting- Videos/Council-Commission-Meetings before 6 pm on July 27,2020.Comments provided via email will be posted on the City website for review by the public.Any documents for review should be sent to the City Clerk prior to the meeting for distribution. 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 –None 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 June 22,2020 City Council Minutes -That the City Council approve the minutes of the Closed Session and Regular City Council meeting held on June 22,2020. B.Approval of the July 1,2020 City Council Minutes -That the City Council approve the minutes of the Closed Session meeting held on July 1,2020. C.Approval of the July 16,2020 City Council Minutes -That the City Council approve the minutes of the Special City Council meeting held on July 16,2020. D.Demands on City Treasury (Fiscal Year 2020 and 2021)–July 27,2020 -Ratification. E.Monthly Investment Report –July 27,2020 -Receive and file. F.Report of City Manager and Department Heads Authorized Contracts -That the City Council receive and file the report. G.A Resolution of the Seal Beach City Council Confirming Supplemental Orders 7-10,Inclusive,to the Proclamation of a Local Emergency Issued by the City Manager/Director of Emergency Services -That the City Council: 1.Review the current state of local emergency and consider whether to confirm Supplemental Orders 7-10,inclusive,to the Proclamation of Local Emergency related to the COVID-19 virus public health emergency,as required by the Seal Beach Municipal Code;and,2.Adopt Resolution 7052. H.Authorize Expenditures with Stantec Consulting Services,Inc.for the LCWA Watermain Lining,WT2103,pursuant to an On-Call Professional Services Agreement -That the City Council adopt Resolution 7053:1. Authorizing the City Manager to approve expenditures in the not-to-exceed amount of $255,942.30 to Stantec Consulting Services,Inc.for professional design,environmental documentation and permitting services for the LCWA Watermain Lining,WT2103,Project pursuant to an On-Call Professional Services Agreement dated July 22,2019,and proposal dated April 9,2020;and, 2.Authorizing the City Manager to approve additional work requests in the cumulative not-to-exceed amount of $20,000. I.Fiscal Year 2020-21 Statement of Investment Policy and Delegation of Authority -That the City Council adopt Resolution 7054 approving the FY 2020-21 Statement of Investment Policy and Delegation of Authority to the Director of Finance/City Treasurer. J.Orange County Operational Area Agreement -Staff requests that the City Council adopt Resolution 7055 approving the 2020 Orange County Operational Area Agreement of the County of Orange and Political Subdivisions (“Agreement”)and authorize the City Manager to sign the Agreement. K.Approving Amendment No.2 to the Professional Services Agreement with AndersonPenna Partners,Inc.for Ocean Place Development Construction Management and Inspection Services -That the City Council adopt Resolution 7056:1.Approving Amendment No.2 to the Professional Services Agreement dated November 13,2018,as previously amended by Amendment No.1 dated January 27,2020,between the City of Seal Beach and AndersonPenna Partners, Inc.to increase consultant’s compensation by $59,800 for a revised total contract amount not-to-exceed $445,439 for the continuation of construction management and inspection services for the Ocean Place Development Project and,2. Authorizing the City Manager to Execute Amendment No.2 L.Award and authorize execution of a Construction Contract with ACCO Engineered Systems,Inc.,for the City Hall HVAC Replacement Project,CIP BG2001 -That the City Council adopt Resolution 7057:1.Approving the plans, specifications,and contract documents for the City Hall HVAC Replacement Project,CIP BG2001;and,2.Approving and awarding a construction contract to ACCO Engineered Systems,Inc.in the amount of $317,137.49 to replace the City Hall HVAC system pursuant to the exemption from competitive bidding requirements set forth in Seal Beach Municipal Code Section 3.20.025(D);and, 3.Authorizing the City Manager to execute the agreement for construction services to ACCO Engineered Systems Inc.;and,4.Authorizing the City Manager to approve additional work requests and inspection services in connection with the Project in the cumulative not to exceed amount of $42,000. M.Approving Amendment No.1 to the Agreement between the City of Seal Beach and Clear Channel Outdoor,LLC to defer the semi-annual advertising revenue sharing payment -That the City Council adopt Resolution 7058:1.Approving Amendment No.1 to the Agreement for Shelter Maintenance and Advertising dated March 10,2014 between the City of Seal Beach and Clear Channel Outdoor,LLC to defer the $22,500 semi-annual advertising revenue sharing payment due to the City on July 31,2020;and,2.Waiving the applicable late fee that would otherwise be owed to the City for missing the July 31,2020 payment so long as Contractor adheres to the deferred payment schedule;and, 3.Authorizing the City Manager to execute Amendment No.1. N.Seal Beach Police Department Purchase of AXON Body Worn Camera System,to Include the Purchase of Integrated TASER 7 System and Patrol Vehicle Camera System -That the City Council adopt Resolution 7059:1. Approving an agreement between the City of Seal Beach and Axon Enterprise, Inc.for the purchase of Body Worn Cameras,in-dash camera system,TASER 7s,accessories and associated programs;and 2.Approving an “add-on” agreement between the City of Seal Beach and Central Square Technologies for the integration of AXON products with the current CAD/RMS systems;and 3. Authorizing the City Manager to execute the agreements and any necessary documents,amendments and extensions on behalf of the City of Seal Beach. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC HEARING O.Resolution Adjusting the Bidding Thresholds for Public Works Contracts and adjusting the City Manager’s Contract Authority for the Acquisition of Goods and Services -That the City Council adopt Resolution 7060:1. Confirming the adjustment of bidding threshold for Public Works contracts to $34,476 pursuant to the City Charter Section 1010;and,2.Adjusting the City Manager’s threshold to bind the City,with or without a written contract,for the acquisition of equipment,materials,supplies,labor,services,or other items within the budget approved by City Council to $34,476 pursuant to City Charter 420 and Resolution 6384. UNFINISHED /CONTINUED BUSINESS –None NEW BUSINESS P.Approval of the Annual Special Taxes for Community Facilities District No. 2002-01 "Heron Pointe"-That the City Council adopt Resolution 7061 approving the Fiscal Year 2020-2021 special tax levy for Community Facilities District No.2002-01 “Heron Pointe”. Q.Approval of the Annual Special Taxes for Community Facilities District No. 2002-02 "Seal Beach Blvd./Lampson Avenue Landscape Maintenance District"-That the City Council adopt Resolution 7062 approving the Fiscal Year 2020-2021 special tax levy for Community Facilities District No.2002-02 “Seal Beach Blvd./Lampson Avenue Landscape Maintenance District”. R.Approval of the Annual Special Taxes for Community Facilities District No. 2005-01 "Pacific Gateway Business Center"-That the City Council adopt Resolution 7063 approving the Fiscal Year 2020-2021 special tax levy for Community Facilities District No.2005-01 “Pacific Gateway Business Center”. S.Ratification of Certification for Receipt of Funds for the State of California Coronavirus Relief Funds for Necessary Expenditures Incurred Due to the Public Health Emergency with Respect to COVID-19 -That the City Council adopt Resolution 7064 ratifying a Certification of Receipt of Funds which serves as the application to the State of California for coronavirus relief funds to reimburse the City for necessary expenditures incurred due to the public health emergency with respect to COVID-19. ADJOURNMENT Adjourn the City Council to Monday,August 10,2020 at 5:30 p.m.to meet in closed session,if deemed necessary. Certificate of Recognition Presented to Thelma Kieffer The Mayor and City Council of the City of Seal Beach Wish you the very best on this momentous occasion. Congratulations on your birthday, and may you enjoy Many more happy years. ~Happy 100th Birthday~ City of Seal Beach Mayor Schelly Sustarsic Mayor Pro Tem Joe Kalmick- Council Members: Sandra Massa-Lavitt, Thomas Moore, Mike Varipapa July 13, 2020 Agenda Item A AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Approval of the June 22, 2020 City Council Minutes ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve the minutes of the Closed Session and Regular City Council meeting held on June 22, 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. Page 2 7 9 9 RECOMMENDATION: That the City Council approve the minutes of the Closed Session and Regular City Council meeting held on June 22, 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 - Closed Session B. Minutes - Regular Session 5 1 4 3 Seal Beach, California June 22, 2020 The City Council met in Closed Session at 5:30 p.m. via teleconference. ROLL CALL Present: Mayor Sustarsic Council Members: Varipapa, Kalmick, Massa-Lavitt, Moore Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Phil Gonshak, Police Chief, Seal Beach Police Department Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. City Clerk Harper announced that no email communications were received. Mayor Sustarsic then closed oral communications. CLOSED SESSION A. Conference with Chief of Police and City Attorney regarding potential threats to the security of public facilities and essential public services posed by the spread of the COVID-19 virus pursuant to Government Code Section 54957(a). City Attorney Steele announced that the City Council met in closed session to discuss the item posted on the agenda and indicated that City Council took no reportable action. ADJOURNMENT Mayor Sustarsic adjourned the Closed Session meeting at 6:45 p.m. Gloria D. Harper, City Clerk City of Seal Beach Approved: Schelly Sustarsic, Mayor Attested Gloria D. Harper, City Clerk Seal Beach, California June 22, 2020 The City Council met in regular session at 7:08 p.m. via teleconference. ROLL CALL Present: Mayor Sustarsic Council Members: Kalmick, Massa-Lavitt, Moore, Varipapa Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Phil Gonshak, Police Chief, Seal Beach Police Department Chief Joe Bailey, Marine Safety Department Steve Myrter, P.E., Director of Public Works Les Johnson, Director of Community Development Kelly Telford, Director of Finance/City Treasurer Tim Kelsey, Recreation Manager Gloria D. Harper, City Clerk Dana Engstrom, Deputy City Clerk APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES City Clerk Harper announced that seven (7) supplemental 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. Council Member Massa-Lavitt moved, second by Council Member Varipapa to approve the agenda. City Clerk Harper took a roll call vote to approve the agenda. AYES: Kalmick, Massa-Lavitt, Moore, Sustarsic, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion carried PRESENTATIONS / RECOGNITIONS • Seal Beach COVID-19 Local Emergency Review Chief Gonshak provided an update on Seal Beach COVID-19 Local Emergency and local protesting. 5 2 3 1 ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. City Clerk Harper announced that five (5) email communications were received and distributed to Council via email and uploaded to the City’s website. Mayor Sustarsic then closed oral communications. CITY ATTORNEY REPORT City Attorney Steele reported that prior to the meeting City Council met in closed session to discuss the one item on the posted agenda and indicated that all Council Members participated via teleconference and took no reportable action. CITY MANAGER REPORT City Manager Ingram highlighted the summer 2020 Recreation Shoreline brochure that is anticipated to be available on the City’s website by the end of the week. The City is excited for the events and programs that will be offered this summer in a virtual environment. Some of the advantages to the enhanced website is that staff is able to make updates in real time, interactive and easy to use, direct links to register, easy to share on social media and between users, the ability to install the brochure on user devices, and the ability to use a QR code. Additionally, she thanked Community Services Coordinator Anthony Nguyen for all his patience, diligence, and creativity in getting this summer’s recreation brochure published. City Manager Ingram encouraged everyone to take a look at the Shoreline brochure on the Recreation and Community Services website at www.sealbeachca.gov or request a copy by phone at 562-431-2527 x1344. COUNCIL COMMENTS Council Member Varipapa indicated that he had no comments. Council Member Moore indicated that he had no comments. Council Member Massa-Lavitt indicated that she attended an Orange County Vector Control virtual meeting noting this is a very bad year for mosquitos and to be conscious of standing water. Mayor Pro Tem Kalmick indicated he attended the Rivers and Mountains Conservancy meeting noting they are working on a lot of projects and waiting for an opportunity for the cities along the San Gabriel River to get assistance in cleaning it up. He noted that he also attended a West-Comm Board meeting to discuss and adopt the FY 2020-2021 budget. Additionally, he stated he met with the President of the Chamber to discuss how the City can work with the Chamber to help businesses in Seal Beach get back on their feet. Mayor Sustarsic stated that she toured Main Street with Congressman Harley Rouda, Seal Beach Chamber President Kori DeLeon, Community Development Director Les Johnson and some local businesses to get feedback on the shutdown. She also indicated that she attended an Orange County Transportation Authority webinar 5 2 3 1 regarding the Bolsa Chica bridge closure, a Mayor City Selection Committee meeting, OC Mayors Conference calls, the West Orange County Water Board meeting, an Airport Land Use Committee meeting, and a Gum Grove Park meeting. COUNCIL ITEMS There were no council items. CONSENT CALENDAR Mayor Pro Tem Kalmick moved, second by Council Member Moore, to approve the recommended actions on the consent calendar. A. Approval of the June 4, 2020 City Council Minutes - That the City Council approve the minutes of the Special City Council Budget Workshop held on June 4, 2020. B. Approval of the June 8, 2020 City Council Minutes - That the City Council approve the minutes of the Closed Session and Regular City Council meeting held on June 8, 2020. C. Approval of the June 16, 2020 City Council Minutes - That the City Council approve the minutes of the Closed Session meeting held on June 16, 2020. D. Demands on City Treasury (Fiscal Year 2020) – June 22, 2020 - Ratification. E. Monthly Investment Report – June 22, 2020 - Receive and file. F. Second Reading and Adoption of Ordinance 1685 - That the City Council adopt Ordinance 1685 titled "An Ordinance of the Seal Beach City Council Prohibiting the Use of Electronic Smoking Devices in Public Parks, on Beaches, and on the Seal Beach Pier.” G. Approval of Resolution Authorizing the Application for Receipt of Local Government Planning Support Grant Program Funds - That the City Council adopt Resolution 7044 authorizing the application for receipt of local government Planning support grant program funds. H. Approval of Professional Services Agreement with B & B Nursery Inc. - That the City Council adopt Resolution 7045: 1. Approving a Professional Services Agreement with B & B Nursery Inc. for installation of five coastal oak trees in Gum Grove Nature Park in the amount of 68,498.45; and, 2. Authorizing the City Manager to execute the agreement. I. Dixon Resources Unlimited Professional Services Agreement Amendment 1 for On- Call Support Services - That the City Council adopt Resolution 7046 to approve and authorize the City Manager to execute Amendment 1 to the Professional Services Agreement with Dixon Resources Unlimited to extend the agreement term for an additional 12 months. 5 2 3 1 City Clerk Harper took a roll call vote to approve the consent calendar items. AYES: Kalmick, Massa-Lavitt, Sustarsic, Moore, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion carried ITEMS REMOVED FROM CONSENT CALENDAR No items were pulled from the consent calendar. PUBLIC HEARING J. Public Hearing Regarding Conditional Use Permit (CUP) 19-9, an Appeal of the Planning Commission's Denial of a CUP to Allow a Type 86 Alcoholic Beverage Control (ABC) License for the On-Site Tasting of Beer, Wine and Distilled Spirits at 1101 Pacific Coast Highway - That the City Council hold a de novo hearing regarding CUP 19-9 and after considering all evidence and testimony presented, adopt Resolution 7047 approving CUP 19-9 with conditions to allow a Type 86 Alcoholic Beverage Control (ABC) license for the on-site tasting of beer, wine and distilled spirits at the Pavilion’s supermarket at 1101 Pacific Coast Highway within the Service Commercial (SC) zoning district. Senior Planner Steve Fowler provided a comprehensive presentation on the staff report and addressed Council Member questions. Mayor Sustarsic opened the public hearing. City Clerk Harper announced that one (1) email communication was received and distributed to Council via email and uploaded to the City’s website. City Clerk Harper read the comment into the record. The applicants were available for any questions. There were no other comments from the public. Mayor Sustarsic then closed the public hearing. City Attorney Steele made clarifications regarding policy revisions. Council Member Varipapa moved, second by Mayor Pro Tem Kalmick, to adopt Resolution 7047 approving CUP 19-9 with conditions to allow a Type 86 Alcoholic Beverage Control (ABC) license for the on-site tasting of beer, wine and distilled spirits at the Pavilion’s supermarket at 1101 Pacific Coast Highway within the Service Commercial (SC) zoning district. City Clerk Harper took a roll call vote to approve Item J. AYES: Kalmick, Massa-Lavitt, Sustarsic, Moore, Varipapa NOES: None 5 2 3 1 ABSENT: None ABSTAIN: None Motion carried City Attorney Steele indicated the City’s action on the Condition Use Permit 19-9 is now final. K. Adopt the Fiscal Year 2020-21 Operating and Capital Improvement Budget; Set the Appropriations Limit for Fiscal Year 2020-21; Reaffirm the previously adopted Fiscal Year 2019-20 Cost Recovery Schedule to be used for Fiscal Year 2020-21 - The City Council hold a public hearing to adopt Resolution 7048 which: 1. Adopts the Fiscal Year 2020-21 Operating and Capital Improvement Budget; and, 2. Sets the Appropriations Limit for Fiscal Year 2020-21; and, 3. Approves the previously adopted Fiscal Year 2019-20 Cost Recovery Schedule to be used for Fiscal Year 2020-21. City Manager Ingram provided a brief background and overview on the process of finalizing the budget and introduced Finance Director/City Treasurer Telford, who spoke regarding the challenges of preparing the FY 2020-2021 budget and CIP budget overview. Finance Director/City Treasurer Telford addressed Council Member questions. Mayor Sustarsic opened the public hearing. City Clerk Harper announced that two (2) email communications were received and distributed to Council via email and uploaded to the City’s website. City Clerk Harper read the comments into the record. There were no other comments from the public. Mayor Sustarsic then closed the public hearing. Council Member Massa-Lavitt moved, second by Mayor Sustarsic, to adopt Resolution 7048 which: 1. Adopts the Fiscal Year 2020-21 Operating and Capital Improvement Budget; and, 2. Sets the Appropriations Limit for Fiscal Year 2020-21; and, 3. Approves the previously adopted Fiscal Year 2019-20 Cost Recovery Schedule to be used for Fiscal Year 2020-21. City Clerk Harper took a roll call vote to approve Item K. AYES: Kalmick, Massa-Lavitt, Sustarsic, Moore, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion carried UNFINISHED/CONTINUED BUSINESS There were no unfinished/continued business items. NEW BUSINESS L. Ratification of Sub-Recipient Agreement Between the County of Orange and 5 2 3 1 the City of Seal Beach for Coronavirus Relief Funds for Necessary Expenditures Incurred Due to the Public Health Emergency with Respect to COVID-19 - That the City Council approve Resolution 7049 ratifying a SubRecipient Agreement between the County of Orange and the City of Seal Beach for coronavirus relief funds to reimburse the City for necessary expenditures incurred due to the public health emergency with respect to COVID-19. City Manager Ingram provided background information on the item and introduced Finance Director/City Treasurer Telford, who provided additional information related to the relief funds. There were no Council Member questions. Council Member Varipapa moved, second by Council Member Moore, to approve Resolution 7049 ratifying a SubRecipient Agreement between the County of Orange and the City of Seal Beach for coronavirus relief funds to reimburse the City for necessary expenditures incurred due to the public health emergency with respect to COVID-19. City Clerk Harper took a roll call vote to approve Item L. AYES: Kalmick, Massa-Lavitt, Sustarsic, Moore, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion carried M. Consideration of Establishing and Administering a Seal Beach Small Business Relief Grant Program - That the City Council adopt Resolution 7050 approving the Seal Beach Small Business Relief Grant Program and the distribution of certain CARES Act funds for economic relief to qualified Seal Beach small businesses. City Manager Ingram provided introductory comments and introduced Director of Community Development Johnson, who provided a comprehensive presentation on the background of the program, eligibility, and grant amounts. Council Member questions were addressed. Council Member Varipapa moved, second by Council Member Moore, to adopt Resolution 7050 approving the Seal Beach Small Business Relief Grant Program and the distribution of certain CARES Act funds for economic relief to qualified Seal Beach small businesses. City Clerk Harper took a roll call vote to approve Item M. AYES: Kalmick, Massa-Lavitt, Sustarsic, Moore, Varipapa NOES: None ABSENT: None ABSTAIN: None 5 2 3 1 Motion carried ADJOURNMENT Mayor Sustarsic adjourned the City Council at 8:34 p.m. to Monday, July 27, 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 B AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Approval of the July 1, 2020 City Council Minutes ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve the minutes of the Closed Session meeting held on July 1, 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. Page 2 8 0 9 RECOMMENDATION: That the City Council approve the minutes of the Closed Session meeting held on July 1, 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 5 2 3 3 Seal Beach, California July 1, 2020 The City Council met in Closed Session at 4:02 p.m. via teleconference. ROLL CALL Present: Mayor Sustarsic Council Members: Varipapa, Kalmick, Massa-Lavitt, Moore Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Phil Gonshak, Police Chief Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. City Clerk Harper announced that five (5) email communications were received. Mayor Sustarsic then closed oral communications. CLOSED SESSION A. Conference with Chief of Police and City Attorney regarding potential threats to the security of public facilities and essential public services posed by the spread of the COVID-19 virus pursuant to Government Code Section 54957(a). City Attorney Steele announced that the City Council met in closed session to discuss the item posted on the agenda and indicated that City Council took no reportable action. ADJOURNMENT Mayor Sustarsic adjourned the Closed Session meeting at 5:10 p.m. Gloria D. Harper, City Clerk Approved: Schelly Sustarsic, Mayor Attested Gloria D. Harper, City Clerk Agenda Item C AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Approval of the July 16, 2020 City Council Minutes ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve the minutes of the Special City Council meeting held on July 16, 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. Page 2 8 1 5 RECOMMENDATION: That the City Council approve the minutes of the Special City Council meeting held on July 16, 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 Seal Beach, California July 16, 2020 The City Council met for a Special City Council meeting at 5:31 p.m. via teleconference. ROLL CALL Present: Mayor Sustarsic Council Members: Kalmick, Massa-Lavitt, Moore, Varipapa Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Phil Gonshak, Police Chief, Seal Beach Police Department Chief Joe Bailey, Marine Safety Department Steve Myrter, P.E., Director of Public Works Les Johnson, Director of Community Development Kelly Telford, Director of Finance/City Treasurer Gloria D. Harper, City Clerk Dana Engstrom, Deputy City Clerk PUBLIC COMMUNICATIONS Mayor Sustarsic opened oral communications. City Clerk Harper announced that eight (8) email communications were received and distributed to Council via email and uploaded to the City’s website. Mayor Sustarsic then closed oral communications. NEW BUSINESS A. Consideration of COVID-19 Related Temporary Outdoor Dining, Retail and Service Allowances - That the City Council adopt Resolution 7051: 1) Approving the 11th supplement to the emergency order issued by the Director of Emergency Services to permit the temporary use of specified public street areas for outdoor business use during the local emergency caused by the COVID-19 Pandemic; and 2) Authorize a Budget Adjustment 21-01-01 in the amount of $35,000 from General Fund reserves to implement and execute the temporary use of specified public street areas for outdoor business use. City Manager Ingram introduced the item and briefly summarized the actions the City has taken to support local businesses over the last few months. She acknowledged and thanked Main Street Revitalization Committee members, Mayor Pro Tem Kalmick and Council Member Varipapa, who spent a significant amount of time with staff and business owners discussing and analyzing the concept of outdoor dining parklets to support restaurants on Main Street. Additionally, she thanked Director of Community Development Johnson for the significant amount of work he has devoted to this important effort in such a short amount of time. Director of Community Development Johnson provided a comprehensive presentation on the proposed temporary outdoor dining and uses. Council Member questions were 5 2 7 9 addressed. There was general discussion regarding ADA compliance and likelihood of using three parking spots versus two parking spots. Council Member Massa-Lavitt moved, Mayor Pro Tem Kalmick seconded, to adopt Resolution 7051: 1) Approving the 11th supplement to the emergency order issued by the Director of Emergency Services to permit the temporary use of specified public street areas for outdoor business use during the local emergency caused by the COVID-19 Pandemic; and 2) Authorize a Budget Adjustment 21-01-01 in the amount of $35,000 from General Fund reserves to implement and execute the temporary use of specified public street areas for outdoor business use. City Clerk Harper took a roll call vote to approve Item A. AYES: Kalmick, Massa-Lavitt, Sustarsic, Moore, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion carried RECESS The City Council adjourned the Open Session portion of the meeting at 6:33 p.m. CALL TO ORDER The City Council met for a Closed Session meeting at 6:37 p.m. via teleconference. ROLL CALL Present: Mayor Sustarsic Council Members: Kalmick, Massa-Lavitt, Moore, Varipapa Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Phil Gonshak, Police Chief, Seal Beach Police Department Les Johnson, Community Development Director PUBLIC COMMUNICATIONS Mayor Sustarsic opened oral communications. City Clerk Harper announced that no email communications were received. Mayor Sustarsic then closed oral communications. CLOSED SESSION B. Conference with Chief of Police and City Attorney regarding potential threats to the security of public facilities and essential public services posed by the spread of the COVID-19 virus pursuant to Government Code Section 54957(a). 5 2 7 9 City Attorney Steele announced that the City Council met in closed session to discuss the item posted on the agenda and indicated that City Council took no reportable action. ADJOURNMENT Mayor Sustarsic adjourned the Special City Council/Closed Session meeting at 7:20 p.m. to Monday, July 27, 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 F AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council FROM:Jill R. Ingram, City Manager SUBJECT:Report of City Manager and Department Heads Authorized Contracts ________________________________________________________________ SUMMARY OF REQUEST: That the City Council receive and file the report. BACKGROUND AND ANALYSIS: In an effort to further increase transparency, the City Manager submits a quarterly report to the City Council that identifies all contracts executed by the City Manager within the City Manager’s authority. In that regard, the City Manager has the authority to approve and execute contracts up to an amount of $33,970. Per the City’s Municipal Code Section 3.20, Purchasing System, Section 3.20.005, the City Council hereby authorizes the City Manager to delegate spending authority to Department Heads. Other than the Director of Public Works and the Director of Finance/City Treasurer this authority shall not exceed $15,000. For the Director of Finance/City Treasurer, other than for Finance Department expenditures which is set at $15,000, there is additional authority to authorize purchases for the other Department Heads up to the City Manager’s established signing authority. For the reporting period of April 1, 2020 through June 30, 2020, there were no contracts executed by the City Manager and Department Heads within the City Manager’s authority. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. 7 4 2 FINANCIAL IMPACT: There is sufficient funding available in the FY 2019-2020 budget. However, as with all City Council – approved contracts, all contracts executed under staff’s contracting authority are processed internally with review/approval by the City Attorney, Finance Director, City Manager, and City Clerk. 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 report. SUBMITTED BY: Jill R. Ingram Jill R. Ingram, City Manager Agenda Item G AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Craig Steele, City Attorney SUBJECT:A Resolution of the Seal Beach City Council Confirming Supplemental Orders 7-10, Inclusive, to the Proclamation of a Local Emergency Issued by the City Manager/Director of Emergency Services ________________________________________________________________ SUMMARY OF REQUEST: That the City Council: 1. Review the current state of local emergency and consider whether to confirm Supplemental Orders 7-10, inclusive, to the Proclamation of Local Emergency related to the COVID-19 virus public health emergency, as required by the Seal Beach Municipal Code; and, 2. Adopt Resolution 7052. BACKGROUND AND ANALYSIS: The State of California is currently in a state of emergency related to the spread of the COVID-19 virus. Local residents and businesses have been faced with a variety of stay at home orders, and a slow move toward re-opening. The effects of the COVID-19 virus and the efforts to slow its spread have been profound, and have literally touched every segment of our society. The City of Seal Beach and Orange County have issued emergency proclamations as well. The City Council ratified the City Manager’s Proclamation of Local Emergency and supplemented it on March 19, 2020. The City Council has since confirmed Supplemental Orders 2 through 6, inclusive. Since then the City Manager, with the advice of the Chief of Police, has issued four additional supplemental orders to the Proclamation of Local Emergency to react to changing circumstances: Supplemental Order Seven, effective May 21, 2020, opened Gum Grove Park for limited activities and increased the activities permitted on City beaches. Supplemental Order Eight, effective June 9, 2020, opened beaches, the Seal Beach Pier, and Gum Grove Park for full uses. Page 2 8 2 0 Supplemental Order Nine, effective June 30, 2020 reduced the cost of City parking permits for businesses and waived annual City fees for Fats, Oil, and Grease (“FOG”) Management Wastewater Discharge Permits for businesses for the 2020-21 fiscal year. Supplemental Order Ten, effective July 3, 2020, closed beaches, beach parking, and the Pier from 10:00 pm July 3, 2020 through sunrise on July 5, 2020, to avoid traditional Fourth of July crowds on the beach. The City Council issued Supplemental Order Eleven, permitting the use of portions of specified streets for outdoor dining and business. All Supplemental Orders reflect the continuing re-evaluation of public health conditions and data in the City. As residents and businesses work hard to stay at home, maintain social distancing, and practice proper hygiene, they help to slow the spread of the COVID-19 virus and avoid overwhelming the region’s hospitals. This progress in the fight against the virus allows for the phased and controlled re-opening of some City facilities and amenities. At the same time, City businesses need the additional assistance the City has been providing to survive in the face of an unprecedented health and financial crisis. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Manager is permitted by the Municipal Code to issue certain regulations during a local emergency for the protection of life and property. The Supplements issued are within her emergency authority. Section 3.25.020(A)(7)(a) requires that the City Council confirm or repeal such regulations “at the earliest practical time.” Further, Government Code Section 8630 provides that the City Council should review the need for continuing the local emergency at least once every 60 days. Although Governor Newsom has waived that time requirement for the duration of this emergency, the City Manager and City Attorney believe that periodic review by the City Council is a good practice that should be maintained. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is an emergency item and has not been evaluated for applicability to the Strategic Plan. Page 3 8 2 0 MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. OPTIONS: The Council’s options are to: 1. Adopt the Resolution confirming the Supplemental Orders to the Local Emergency Proclamation. 2. Do not confirm one or more Supplemental Orders. RECOMMENDATION: The City Manager and City Attorney recommend that the City Council adopt the resolution. COUNCIL ACTION REQUIRED: If the City Council decides to confirm the Supplemental Orders, the appropriate motion would be a motion to adopt Resolution 7052. SUBMITTED BY: NOTED AND APPROVED: Craig Steele Jill R. Ingram Craig Steele, City Attorney Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7052 RESOLUTION 7052 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL CONFIRMING SUPPLEMENTAL ORDERS 7-10, INCLUSIVE, TO THE PROCLAMATION OF A LOCAL EMERGENCY ISSUED BY THE CITY MANAGER/DIRECTOR OF EMERGENCY SERVICES WHEREAS, on March 13, 2020 the City Manager, as the Director of Emergency Services, proclaimed a Local Emergency for the 2020 Coronavirus Pandemic pursuant to Seal Beach Municipal Code Section 3.25.020, to protect public health, safety and welfare, and to enhance the City’s ability to mobilize local resources, coordinate interagency response, accelerate procurement of vital supplies, use mutual aid, and seek potential reimbursement by the State and Federal governments; and WHEREAS, the City Council ratified and supplemented the Proclamation of Local Emergency in an open meeting on March 19, 2020; and WHEREAS, the City Manager, as the Director of Emergency Services, and acting with the advice of the Chief of Police, has issued further Supplements 7 - 10 to the said Local Emergency Proclamation; and WHEREAS, the continuing public health emergency in the City and the nation require extraordinary and temporary measures to slow the spread of the COVID- 19 virus, to protect lives, and to avoid overwhelming the public health system; and WHEREAS, Supplemental Orders 7-10, inclusive, to the Proclamation of Local Emergency are necessary to protect public health, safety, life and property in the City, but also reflect the benefits of the actions the residents have taken to comply with applicable public health orders. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. That the City Council has reviewed, at the earliest practical time, the previously-ratified and supplemented Proclamation of Local Emergency for the 2020 Coronavirus Pandemic, and Supplemental Orders 7-10, inclusive, as attached hereto, pursuant to Seal Beach Municipal Code Sections 3.25.020(A)(2) and 3.25.020(A)(7)(a), and taken reports from staff regarding the continuing emergency status in the City. Section 2. The City Council hereby confirms Supplemental Orders 7-10, inclusive, issued by the City Manager and confirms that the Local Emergency Proclamation, as supplemented, remains necessary for the protection of life and property. 5 2 8 1 PASSED, APPROVED, and ADOPTED by the City Council at a regular meeting held on the 27th day of July, 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 7052 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk Agenda Item H AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Steve Myrter, P.E., Director of Public Works SUBJECT:Authorize Expenditures with Stantec Consulting Services, Inc. for the Los Cerritos Wetlands Authority Watermain Lining, WT2103, pursuant to an On-Call Professional Services Agreement ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7053: 1. Authorizing the City Manager to approve expenditures in the not-to- exceed amount of $255,942.30 to Stantec Consulting Services, Inc. for professional design, environmental documentation and permitting services for the Los Cerritos Wetlands Authority Watermain Lining, WT2103, Project pursuant to an On-Call Professional Services Agreement dated July 22, 2019, and proposal dated April 9, 2020; and, 2. Authorizing the City Manager to approve additional work requests in the cumulative not-to-exceed amount of $20,000. BACKGROUND AND ANALYSIS: The City’s 18-inch diameter Los Cerritos Wetlands Authority (LCWA) Watermain is critical to the water system operations to ensure water conveyance redundancy from the northern regions of the City to the Old Town neighborhood. This transmission main runs through the LCWA and Hellmann properties, commencing at Pacific Coast Highway and proceeding northward along the First street extension and ultimately connecting to Seal Beach Boulevard through Adolfo Lopez Drive. The City maintains a 10-foot wide access easement within the project limits. A water main break occurred on July 22, 2019, followed by a second main break on August 17, 2019. Due to the size and scope, emergency repair work was undertaken and performed under two separate emergency coastal development permits. Page 2 7 9 3 Given the main break frequency and age of this LCWA Watermain, a proposal was solicited from Stantec Consulting Services, Inc. (Stantec) to provide full design, environmental documentation, and permitting services. Stantec is recommended for this work as they provided pre- and post-biological monitoring services during the two Summer 2019 emergency main breaks, and has an in- depth knowledge of the water main and environmental sensitivity. Stantec submitted a proposal dated April 9, 2020 to the City for the LCWA Watermain Lining project under their existing On-Call Professional Services Agreement with the City, dated July 22, 2019 (“Agreement”). The recommended expenditure authorization under Stantec’s Agreement is in a not-to-exceed amount of $255,942.30. The proposed costs of services were found to be comparable within the current market. Given the project complexity and coordination with LCWA and Hellman Property, staff further recommends establishing a contingency budget of $20,000 and authorizing the City Manager to approve additional work requests. This project will be coordinated with LCWA’s wetlands restoration plan. 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 approved the resolution as to form. FINANCIAL IMPACT: $280,000 has been allocated in the approved FY 2020-21 Capital Improvement Program budget, WT2103, of which $255,942.50 will be utilized for the project design services, and $20,000 will be used for additional work requests. 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. Page 3 7 9 3 RECOMMENDATION: That the City Council adopt Resolution 7053: 1. Authorizing the City Manager to approve expenditures in the not-to- exceed amount of $255,942.30 to Stantec Consulting Services, Inc. for professional design, environmental documentation and permitting services for the Los Cerritos Wetlands Authority Watermain Lining, WT2103, Project pursuant to an On-Call Professional Services Agreement dated July 22, 2019, and proposal dated April 9, 2020; and, 2. Authorizing the City Manager to approve additional work requests in the cumulative not-to-exceed amount of $20,000. 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 7053 B. Stantec Proposal RESOLUTION 7053 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AUTHORIZING THE CITY MANAGER TO APPROVE EXPENDITURES TO STANTEC CONSULTING SERVICES, INC. FOR THE LOS CERRITOS WETLANDS AUTHORITY WATERMAIN LINING, WT2103, PROJECT PURSUANT TO ON-CALL PROFESSIONAL SERVICES AGREEMENT WHEREAS, the City of Seal Beach (“City”) has entered into an On-Call Professional Services Agreement (“Agreement”) with Stantec Consulting Services, Inc. on July 22, 2019; and, WHEREAS, Stantec Consulting Services, Inc. submitted a proposal dated April 9, 2020 to the City for professional design, environmental documentation and permitting services for the Los Cerritos Wetlands Authority Watermain Lining, WT2103, project (“Project”), pursuant to the Agreement; and, WHEREAS, the City has determined that Stantec Consulting Services, Inc. is qualified to provide professional design, engineering documentation and permitting services for the Project. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby authorizes the City Manager to approve expenditures to Stantec Consulting Services, Inc. for providing professional design, environmental documentation and permitting services for the Los Cerritos Wetlands Authority Watermain Lining, WT2103, project for a not-to-exceed amount of $255,942.30, pursuant to the July 22, 2019 On-Call Professional Services Agreement between the City and Stantec Consulting Services (“Agreement”), and the Stantec Consulting Services, Inc. proposal dated April 9, 2020. Section 2. The City Council hereby authorizes the City Manager approve payments for additional work requests in connection with the Project in the cumulative not-to-exceed amount of $20,000. 5 2 0 3 PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July 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 7053 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July 2020. Gloria D. Harper, City Clerk Stantec Consulting Services Inc. 38 Technology Drive, Irvine CA 92618-5312 April 9, 2020 Iris Lee, PE Deputy Public Works Director / City Engineer Public Works Department City of Seal Beach 211 Eight Street Seal Beach California 90740 Subject: Hellman Ranch Water Main Rehabilitation PROJECT UNDERSTANDING – The City of Seal Beach has experienced a significant increase in water main leaks along the existing 18- inch diameter potable water main within the City limits. The City intends to rehabilitate the existing potable water line in-place by relining the pipeline by slip-lining or cured in place pipe (CIPP) methods of the existing cast iron pipe. The existing pipeline is located within an environmentally sensitive area as depicted in Figure 1, which poses issues for construction access and permitting for construction purposes. The following Scope of Services details the Stantec’s efforts in order to implement this project. SCOPE OF SERVICES TASK 100 – PROJECT MANAGEMENT AND REPORTING Stantec will provide Project Management and Reporting throughout the project term. The project management will promote communication between the project team and the City staff, provide weekly project updates and coordinate project effort throughout the duration of the project. TASK 100.01 – WEEKLY PROJECT UPDATES – Stantec will provide a weekly update to the City Project Manager as a brief email summarizing the past week accomplished work, planned work for the current week, and potential project issues. The email will be provided to the City Project Manager on Monday of each week prior to 12:00 noon. Deliverable: Weekly project update via email to the City Project Manager. TASK 101 – PROJECT COORDINATION MEETINGS Stantec will organize the following project coordination and project workshop to facilitate communications during the design development and final engineering processes. For budgeting purposes, the following meeting have been included in the Scope of Services: April 9, 2020 Iris Lee, PE, Page 2 of 16 Subject: Hellman Ranch Water Main Rehabilitation Meeting Description Duration Project Kick-off Meeting 2 hours Preliminary Engineering Review Meeting 2 hours 60% Design Review Meeting 2 hours ACOE Resource Permit Meeting 2 hours 1600 Streambed Alteration Agreement 2 hours Caltrans Coordination Meeting 1 hour 90% Design Review Meeting 1 hour Final Approval Meeting 1 hour TASK 102 – QUALITY ASSURANCE / QUALITY CONTROL MANAGEMENT Stantec will implement our Quality Management System throughout the project to ensure consistent quality control for all phases of work. Stantec’s Quality Management System. Stantec will perform a Quality Assurance and Quality Control Review on all work products prior to delivery to the City of Seal Beach. Internal review will be conducted by a Qualified Technical Reviewer and all comments will be resolved between the review and the project team. Stantec will maintain review records for the project including original comment logs and resolution during the project duration. TASK 200 – PRELIMINARY ENGINEERING Stantec will prepare a Preliminary Engineering Basis of Design Memorandum identifying the initial design concepts for the rehabilitation of the proposed pipeline, identification of environmental studies and/or permits, preparation of preliminary design concepts and preliminary opinion of probable construction costs. Preliminary engineering efforts will also include survey and mapping for the project area along with geotechnical investigations to determine existing ground conditions for the development of shoring and provide required information allowing for the Contractor to determine dewatering needs and develop a dewatering system. TASK 200.01 – SITE SURVEY AND ALIGNMENT Stantec will prepare topographic mapping of the project area at a scale of 1”=40 feet. Topographic mapping will include existing right-of way boundaries, identification of existing surface improvements and ground culture features. Aerial mapping of the project area will be conducted to provide a minimum of 100 feet outside the existing right of way. Stantec shall provide orthrographically corrected aerial image for use during the design efforts. April 9, 2020 Iris Lee, PE, Page 3 of 16 Subject: Hellman Ranch Water Main Rehabilitation TASK 200.02 – GEOTECHNICAL INVESTIGATION Stantec will provide through our Subconsultant, Kleinfelder, a Geotechnical Investigation that will support the overall design requirements of the proposed project. The Geotechnical Investigation will include the following activities: Subtask 200.02.01 – Setup, Data Review, Permitting, and Health and Safety Plan: Kleinfelder will review available geologic information surrounding the proposed project and consult with the project team to identify representative locations for the field investigation. Prior to executing the field work, Kleinfelder will obtain a well permit in accordance with the requirements of the Orange County Health Care Agency (OCHCA) for the proposed borings. Kleinfelder has assumed that the permit will be procured in the City’s name and that the City’s project manager will sign the permit application in order to obtain a “no fee” permit. In addition, Kleinfelder will prepare a site-specific health and safety plan (HASP) addressing site-specific conditions. The HASP will discuss general safe-work practices (including COVID-19) and address work hazards, site-specific conditions, and the proposed scope of services. The HASP will include typical industry standard content for projects of similar scope. Subtask 200.02.01 – Site Reconnaissance, Geophysical Investigation, and Utility Clearance: Prior to implementing any field investigation efforts, Kleinfelder will perform a site reconnaissance, verify site access, mark the locations of our proposed field explorations within 1st Street (adjacent to the proposed alignment), and notify Underground Service Alert of our intent to dig in accordance with State law. Kleinfelder specifically requests that all available information identifying the type and location of utility lines and other human-made objects beneath the proposed improvement areas be provided to us by Stantec or the City of Seal Beach at least one week prior to marking our field explorations. Concurrent with the site reconnaissance, Kleinfelder’s will perform a geophysical survey to aid in identifying underground utilities in the area immediately surrounding the proposed field exploration locations. Although performing a geophysical survey does not guarantee that the locations are clear of underground utilities, it decreases the risk associated with drilling in the subsurface. Subtask 200.02.03 – Field Exploration: Kleinfelder proposes to drill eight (8) borings to depths of approximately 20 feet below ground surface (bgs) or refusal using truck-mounted, hollow-stem-auger drilling techniques. An engineer or geologist from Kleinfelder will oversee the drilling and obtain samples for visual observation, classification, and laboratory testing. Soil samples will be collected from the borings at 2.5-foot depth intervals alternating between a Standard Penetration Test (SPT) sampler and a California sampler. At least one bulk sample will be collected in the upper five feet at each boring location. The depth to groundwater will be measured during drilling and at the completion of drilling, if encountered. Upon completion of drilling, the borings will be grouted with cement bentonite grout. We have assumed that investigation-derived waste (IDW) (soil cuttings from the borings) will be drummed and disposed of offsite. The project budget includes the cost for profiling, pickup, and disposal of non-hazardous soil cuttings. It is assumed that the City (or its agent) will sign the bill of lading or hazardous waste manifest required for disposal of the drill cuttings. If the analytical test results indicate that the soil cuttings are deemed April 9, 2020 Iris Lee, PE, Page 4 of 16 Subject: Hellman Ranch Water Main Rehabilitation hazardous, Kleinfelder will immediately notify Stantec and the City of Seal Beach in order to negotiate a contract amendment to properly dispose of the cuttings. Subtask 200.02.04 – Laboratory Testing: Representative samples of the soils obtained from the borings will be returned to Kleinfelder’s laboratory for visual examination. Selected samples will be tested to evaluate pertinent geotechnical characteristics. Moisture content, density, grain size distribution, Atterberg limits, and direct shear testing will be performed as appropriate on selected soil samples to assess the physical characteristics of the subsurface soils encountered at the site. The actual testing program will be designed based on subsurface soil conditions encountered during drilling, and not all tests mentioned may be needed. Subtask 200.02.05 – Geotechnical Evaluation: Kleinfelder will perform geotechnical engineering analyses based on data obtained from the literature review and proposed field and laboratory testing to provide geotechnical recommendations for the temporary shoring of the entry pits, earthwork and excavation requirements, and suitability of the on-site soils for use as backfill. Subtask 200.02.06 – Draft and Final Report: The geotechnical engineering report will summarize the subsurface conditions and contain conclusions and recommendations to support the proposed construction. Kleinfelder anticipates the report will include the following: • Our understanding of the proposed construction; • Discussion of the subsurface exploration program and laboratory testing program; • Description of soils encountered, subsurface conditions, and soil classification in • accordance with the Unified Soil Classification System, and groundwater encountered; • Laboratory test results; • Conclusions and recommendations regarding: o Geologic hazards; o Temporary excavations and shoring, including lateral earth pressures; o Range of permeability values based on correlations with grain size; and o Earthwork, excavation, subgrade preparation, backfill and compaction requirements, and suitability of site soil for use as fill. Kleinfelder will submit a draft report for review, and comments will be addressed in our final report. We have assumed responding to one round of review comments will be required. April 9, 2020 Iris Lee, PE, Page 5 of 16 Subject: Hellman Ranch Water Main Rehabilitation Subtask 200.02.07 – Project Management and Consultation: Kleinfelder will coordinate with Stantec; manage Kleinfelder’s subcontractors; allocate staff resources to the project; monitor progress, budget, and quality; and report on the overall task progress. We will provide the necessary project management tools and resources to assure that the project proceeds in an appropriate and expeditious manner and that the responsible Stantec and Kleinfelder personnel are involved in decisions that include the project’s progress, budget, scope and schedule, as appropriate. Kleinfelder has budgeted eight hours for this task including up to two hours for consultation after report submittal. Geotechnical Assumptions: The scope of work described above and the associated fee assumes the following: • An encroachment permit will not be required for drilling our proposed borings within 1st Street, northeast of Pacific Coast Highway; • Securing right of entry from public or private property owners, if necessary, is not included in this scope; • A well permit will be procured in the City’s name and that the City’s project manager will sign the permit application in order to obtain a “no fee” permit; • The City of Seal Beach or Stantec will provide Kleinfelder with utility drawings for 1st Street east of Pacific Coast Highway at least one week prior to the date that the borings will be marked in the field; • The site is accessible with a conventional truck-mounted drill rig equipped with hollow stem auger for drilling; • Kleinfelder’s scope of work includes performing grain-size distribution tests for use by the contractor but does not include preparing dewatering recommendations or providing estimates of dewatering rates. Dewatering system design will be the responsibility of the contractor; • Soil borings will be grouted with cement bentonite grout and capped with 1 foot of gravel (in gravel areas) or with cold-patch asphalt in paved areas at the completion of drilling; • IDW will be drummed for offsite disposal. The drums can be temporarily stored in a central location on-site near the entrance pending receipt of analytical results and subsequent pickup for offsite disposal; • The City or its agent will meet Kleinfelder’s representative at the site to sign the manifest as generator for transport of IDW by waste hauler; April 9, 2020 Iris Lee, PE, Page 6 of 16 Subject: Hellman Ranch Water Main Rehabilitation • The scope of work included within our fee estimate does not include any services in connection with the discovery of potential contamination during our drilling and sampling operations. If such material is suspected, we will notify you immediately for direction before proceeding on any out-of- scope services; • Our scope includes post-report consultation services up to a total of two hours; • The fees include one round of draft report review by Stantec/City prior to issuance of the final report; responses to other review agencies or additional work that may be requested by reviewing agencies are not included; and • Construction observation and testing are not included in our scope of work, but can be provided for an additional fee, if requested. TASK 200.03 – PRELIMINARY ENGINEERING CONCEPT DEVELOPMENT – Stantec will prepare a preliminary engineering concept technical memorandum. The technical memorandum will provide for the project description, identify points of entry/insertion and points of exit/extraction for the implementation of the pipeline liner. Stantec will prepare concept design exhibits that will serve as the basis for environmental documentation. TASK 200.04 – DEVELOPMENT OF REVISED PIPELINE HYDRAULICS – Stantec will prepare pipeline hydraulics based on reduced flow area post slip-lining operations. TASK 200.05 – PRELIMINARY OPINION OF PROBABLE CONSTRUCTION COSTS – Stantec will prepare Preliminary Opinion of Probable Construction Costs (POPCC) for budgetary purposes. POPCC will be based on the judgement of the design professional and pricing information provided through similar project adjusted for current inflation rates. TASK 300 – ENVIRONMENTAL DOCUMENTATION / STUDIES Stantec will prepare supporting environmental documentation and field studies supporting the design and implementation of the proposed pipeline rehabilitation projects. SUBTASK 300.01 – BIOLOGICAL RESOURCES SURVEY AND REPORTING – Stantec will conduct surveys and prepare a Biological Resources Technical Report (BRTR) that that meets the requirements set forth by the California Coastal Commission (CCC). To support the design and regulatory permitting process , Stantec biologists will conduct focused (non-protocol level) surveys to provide a general biological resources inventory of the approximately 0.75 mile long Project site (with a 500-ft buffer; where accessible) to determine the presence/absence of and the potential for occurrence of common and special status plants or vegetation communities. While the surveys will serve to document all plants and wildlife, they will generally focus on the detection of sensitive birds, mammals, reptiles, invertebrates, and amphibians that may occur on or near the proposed April 9, 2020 Iris Lee, PE, Page 7 of 16 Subject: Hellman Ranch Water Main Rehabilitation Project site. To the extent possible, surveys will conducted when special-status plant species would be in bloom or identifiable, migratory birds would be passing through and returning to the site, resident bird species would be nesting and fledging, small mammals would be active, and above-ground amphibian and reptile movement would be detectable. However, it is acknowledged that some wildlife species and/or individuals may be difficult to detect due to their elusive nature, cryptic morphology, or exhibit activity periods outside of the survey timeframes. Observations of sensitive wildlife will be logged using a Trimble GPS or GPS-enabled mapping tablet capable of sub-meter positional accuracy and mapped on aerial photography; Stantec biologists will also note the presence and distribution of invasive plants and wildlife within areas surveyed. The following is a summary of methodologies that will be employed during the general biological surveys. Subtask 300.01.01 – Literature Review: A literature review will be performed in conjunction with the field surveys for the Project site. A review of the CDFW California Natural Diversity Database (CNDDB) will be conducted for the U.S. Geological Survey’s (USGS) 7.5-minute topographic quadrangle in which the survey(s) occur along with the adjacent eight quadrangles. The purpose of the review is to determine the special-status plants, wildlife, and vegetation communities that have been documented within the vicinity of the Project. Additional data regarding the potential occurrence of special-status species and policies relating to these special-status natural resources is generally gathered from the following sources: • State and federally listed endangered and threatened animals of California • CDFW Special Animals List • CDFW California Wildlife Habitat Relationships • CNPS Inventory of Rare and Endangered Vascular Plants of California • Consortium of California Herbaria • Aerial photographs of the location to be surveyed and surrounding areas Subtask 300.01.02 – Common and Sensitive Wildlife: Reconnaissance-level surveys will be performed by methodically walking meandering transects through the entirety of the Project site at an average pace of approximately 1.5 km/hr while visually searching for and listening to wildlife songs and calls and searching for animal signs (i.e., scat, footprints, fur, burrows, etc.). The walking surveys will be halted approximately every 50 meters to listen for wildlife or whenever necessary to identify, record, or enumerate any other detected species. Terrestrial insects and other invertebrates will be searched for on flowers and leaves, under loose bark, and under stones and logs on the ground throughout the Project site. Randomly selected areas within appropriate micro habitats (i.e., leaf litter, underneath felled logs/trees, etc.) will be hand raked or visually inspected to determine the presence/absence of gastropods. Surveys will be conducted during daylight hours when temperatures are such that reptiles would be active (i.e., between 75 – 95 oF). Visual observations will be made to locate basking reptiles, and potential refuge areas, such as debris piles (i.e., woody debris, trash, etc.), will be searched. All refugia sites search will be returned to their original state upon survey completion. April 9, 2020 Iris Lee, PE, Page 8 of 16 Subject: Hellman Ranch Water Main Rehabilitation Subtask 300.01.03 – Vegetation Mapping: Vegetation descriptions and names will be based on Sawyer et al. (2009) and will be defined to alliance, at minimum. Vegetation maps will be prepared by drawing tentative vegetation type boundaries onto high-resolution aerial images while in the field, then digitizing these polygons into GIS. Most boundaries shown on the map deliverable are accurate within approximately three feet; however, boundaries between some vegetation types are less precise and may be estimated due to difficulties interpreting aerial imagery and accessing certain stands of vegetation. Stantec biologists utilize the latest advances in technology to create highly accurate and descriptive vegetation maps. Utilizing a GPS enabled tablet, along with sub-meter GPS receivers, Stantec biologists can map vegetation communities while on-site and immediately upload the data to the cloud for processing back at the office. This valuable tool limits the need for a large amount of paper maps, reducing costs and potential transcription errors, while remaining environmentally conscious. Subtask 300.01.04 – Reporting: Upon completion of the fieldwork described above Stantec will prepare a BRTR following current CCC biological reporting guidelines. This report will detail the results of the biological surveys and include information regarding species observed in the survey area, the potential for special-status species to occur on or near the survey area, a map of vegetation communities occurring within the survey area, environmental concerns, regulatory requirements, and the potential need for additional focused surveys (if required). The report will include photos of the proposed Project areas, descriptions of all habitats and sensitive species that are present or have the potential to occur, maps of all sensitive species and habitat locations or territories, and GIS based site figures (following CCC biological reporting guidelines). Deliverable: Stantec will prepare and submit Draft and Final BRTR. TASK 300.02 – PRELIMINARY WETLANDS / WATERS JURISDICTIONAL DELINEATION – Stantec will conduct a preliminary jurisdictional delineation of “waters of the US,” including wetlands, waters of the State, CCC jurisdictional wetlands, and California Department of Fish and Wildlife (CDFW) jurisdictional waters within 100 feet of the Project site (where accessible). The jurisdictional limits of the waters of the U.S. within the Project site will be delineated following the methodology of the United States Army Corps of Engineers (USACE) 1987 Wetland Delineation Manual and the Interim Regional Supplement to the Corps of Engineers Wetland Delineation Manual: Arid West Region (2006). Identified jurisdictional boundaries will be delineated and mapped, with acreages quantified using a GPS enabled mapping tablet capable of determining sub-meter positional accuracy. Prior to conducting the field assessment, Stantec will review current and historic aerial photographs, topographic maps, available soils information, and local and State hydric soil list information to evaluate potential jurisdictional features. Many potentially jurisdictional features are often misidentified when reviewing aerial photography alone; thus, each feature will be verified in the field. To verify information described above, Stantec will conduct a field reconnaissance survey with experienced wetland specialists, which will include a field investigation into the current status of jurisdictional waters/wetland habitats on the Project site. The field survey will focus on areas that exhibit an ordinary April 9, 2020 Iris Lee, PE, Page 9 of 16 Subject: Hellman Ranch Water Main Rehabilitation high-water mark or other identifying hydrologic features. Based on data collected on the Project site the total area of State and federal jurisdictional features will be calculated. Upon completion of fieldwork Stantec will prepare a formal Jurisdictional Wetlands/Waters Delineation Report in a format acceptable to the to support compliance with the USACE, Regional Water Quality Control Board (RWQCB), CCC and CDFW requirements under the Federal Clean Water Act, California Coastal Ace, and California Fish and Game Code; including maps, figures, photo documentation, and field data sheets. The wetland maps will be provided in that can be overlaid with construction plans for quantification of impacts for permit applications (if required). Deliverable: Stantec will prepare a Draft and Final Preliminary Jurisdictional Delineation Report. TASK 300.03 – REGULATORY PERMITTING Subtask 300.03.01 – USACE Section 404 Permit: The limits of impacts to wetlands authorized under Nationwide Permits (NWP) will be determined after the jurisdictional delineation is complete and the breadth of project activities are defined. We will prepare a USACE Pre-Construction Notification checklist and/or a NWP application and supporting documents. It is assumed that project impacts will qualify for use of a NWP; if after completion of the JD under Task 2 above it is determined that an Individual Permit is required, additional scope and cost would need to be prepared prior to completion. Stantec can prepare this additional scope and costs upon request. Stantec will attend one site visit with the USACE and participate in one conference call with the USACE after application/notification submittal. Deliverable: Stantec will prepare a Draft and Final USACE Pre-Construction Notification Package. Subtask 300.03.02 – RWQCB Section 401 Water Quality Certification: Section 401 of the CWA requires any person applying for a federal permit or license, which may result in a discharge into Waters of the United States (WOUS), must obtain a Section 401 Water Quality Certification (WQC) certifying the activity complies with all applicable water quality standards, limitations, and restrictions. We will prepare a WQC application and supporting documentation, provide it for review and comment, incorporate any requested changes, and upon approval, submit the application to the RWQCB. Stantec will attend one site visit with the RWQCB and participate in one conference call with the RWQCB after application submittal. As part of the application, payment of a fee to the RWQCB is required and is dependent on proposed project impacts (acres or linear footage). Stantec is not proposing fees to cover the application fees; all application fees will be paid by the City. The RWQCB requires compliance with CEQA in order to complete their permitting process. It is assumed that the project will qualify for use of a CEQA exemption (refer to Task 4 below). Deliverable: Stantec will prepare a Draft and Final RWQCB Permit Application package. Subtask 300.03.03 – CDFW Streambed Alteration Agreement: The CDFW requires notification of impacts to its jurisdiction through submittal of a Streambed Alteration Agreement (SAA) notification. We will prepare the CDFW SAA Notification and supporting documentation, provide it for review and comment, incorporate any requested changes, and upon approval, submit the application. As part of the application, payment of a fee to the CDFW is required and is dependent on the project cost. Stantec will attend one site visit with the CDFW and participate in one conference call with the CDFW after application submittal. As part of the application, payment of a fee to the CDFW is required and is dependent on overall project costs. Stantec is April 9, 2020 Iris Lee, PE, Page 10 of 16 Subject: Hellman Ranch Water Main Rehabilitation not proposing fees to cover the application fees; all application fees will be paid by the City. The CDFW requires compliance with CEQA in order to complete their permitting process. It is assumed that the project will qualify for use of a CEQA exemption (refer to Task 4 below). Deliverable: Stantec will prepare a Draft and Final CDFW Permit Application package. TASK 300.04 – CEQA EXEMPTION Based on our preliminary review and experience with similar projects, we believe it is likely that the project could be found exempt from the California Environmental Quality Act (CEQA). Stantec will prepare a CEQA exemption evaluation memorandum that will cite Categorical and/or Statutory exemptions that could be applied to the project. Stantec will also prepare a Notice of Exemption form for City review and execution. Stantec will file the City excited Notice of Exemption form with the State Clearinghouse and Orange County Clerk. Deliverable: Stantec will prepare a Draft and Final CEQA Exemption. TASK 300.05 – COASTAL DEVELOPMENT PERMIT Because the project occurs within the Coastal Zone and the City does not have an approved Local Coastal Program, the project will require issuance of a Coastal Development Permit (CDP) from the California Coastal Commission (CCC). Stantec will prepare a draft application package for the required Coastal Development Permit including a cover letter, complete application questionnaires/forms, adjacent property ownership, public notice materials, and supporting technical studies completed as other separate tasks (i.e., Jurisdictional Delineation Report, Biological Resources Technical Report). Stantec will also address one round of consolidated City comments on the draft and will prepare a final permit application package for submission to CCC. Upon submission of the application to the CCC, Stantec will post the required notice of pending permit at the site. This task includes preparing draft responses to two rounds of agency comments during the permit review and processing period. Stantec will also address one round of consolidated City comments on the draft responses to agency comments and will prepare final responses to agency comments for submission to CCC. Stantec will additionally attend the CCC public hearing considering issuance of the CDP and answer project-related questions at the request of the City and CCC. Deliverables: • Draft permit application package (electronic format) • Final permit application package for the CCC CDP (one hard copy and electronic format) • Draft responses to two rounds of comments/requests for additional information from the CCC (electronic format) April 9, 2020 Iris Lee, PE, Page 11 of 16 Subject: Hellman Ranch Water Main Rehabilitation • Final responses to two rounds of comments/requests for additional information from the CCC (electronic format) • Representation at CCC public hearing for permit issuance • Does not include a resiliency study • Assumes the City pays CCC permit filing/processing fee TASK 300.06 – HABITAT RESTORATION PLAN Stantec will prepare an HRP to restore habitat impacted by the recent water line repair work. The HRP shall include, at a minimum, the following items: • A description of the existing physical conditions of the restoration site, including water resources and habitat types, a map that identifies the location of the site, evaluation of potential and present beneficial uses. • A plan for and the location of the preparation of the restoration site, post-project construction, including the removal of nonnative plant species, redistribution of previously stockpiled native topsoil, and grading. • Figures depicting areas proposed for disturbance/restoration and the vegetation habitat types impacted by construction of the Project. • Proposed species for restoration/revegetation: The species palate proposed for restoration/revegetation shall include an appropriate native seed mix representative of the current species composition in the restoration/revegetation areas and shall not contain non-native invasive species. • Planting methodology: A description of the preferred methods proposed for seeding shall be provided (e.g., hydroseeding, drill seeding, broadcast seeding, etc.). Additionally, a discussion on timing of seeding, type of irrigation system proposed (as needed), type and duration of irrigation, and erosion controls proposed for revegetation activities shall be included. • Guidance on irrigation, including a requirement that the restoration areas not be watered for a minimum of two years prior to agency sign-off. • Schedule: A proposed schedule for all restoration and/or habitat creation shall be provided. • Success criteria: A description of the success criteria for the restoration/revegetation efforts, and supplemental activities to be conducted to ensure success criteria are met. • Establishment of permanent photo monitoring stations. April 9, 2020 Iris Lee, PE, Page 12 of 16 Subject: Hellman Ranch Water Main Rehabilitation • Monitoring program: Areas subject to restoration/revegetation shall be monitored to assess progress and to make recommendations for successful habitat establishment. Monitoring will be performed by a qualified biologist(s) knowledgeable in the area of habitat restoration specific to the on-site vegetation communities. Monitoring should include, at a minimum: o Qualitative Monitoring o Quantitative Monitoring • Reporting Requirements • Plans/methods to identify remediation or maintenance work well in advance of the final success/failure determination. Deliverables: Stantec will prepare a Draft and Final Habitat Restoration Plan. TASK 300.07 – CULTURAL RESOURCES STUDY As the proposed work is subject to federal permitting, the USACE would be required to comply with Section 106 of the National Historic Preservation Act (NHPA). Stantec proposes to conduct a Phase I inventory of cultural/historical resources that could be potentially impacted by Pilot Project implementation. The Phase I inventory will include a records search at the South Central Coastal Information Center of the California Historical Resource Information System (CHRIS) and/or USACE files, a field survey, and a written report detailing the survey process and results. The field survey will include the proposed Project boundary area and accessible areas within a 100-foot buffer. The report will include a potential impact analysis and if necessary, recommended mitigation measures to reduce the potential for substantial adverse effects to cultural resources from proposed Project implementation. Deliverables: • Summary of CHRIS Records Search and/or USACE files. Note: If requested, confidential site information will only be provided to a City of Seal Beach-designated professional. • Preparation of Consultation letters • Draft and final Cultural Resources Study Report ENVIRONMENTAL STUDIES ASSUMPTIONS: • Scope and costs presented above assume that Tasks 300.01 and 300.02 are authorized concurrently. If they are authorized separately a change order for additional mobilization costs would be required. • Stantec does not proposed to conduct any protocol surveys as part of this scope of work. • Stantec assumes that the City of Seal Beach will provide access to the site for field-based activities. April 9, 2020 Iris Lee, PE, Page 13 of 16 Subject: Hellman Ranch Water Main Rehabilitation • Deliverable costs for Tasks 300.01 – 300.04 and Task 300.06 assume addressing up to two rounds of consolidated comments from the City of Seal Beach for each draft report/form (BRTR, JD, CEQA exemption, and Restoration Plan) and up to two rounds of consolidated comments from the City and each of the regulatory agencies for each of the permit application packages. • All draft and final deliverables will be provided in electronic format. • All permit application fees will be paid by the City of Seal Beach. • Task 300.07 does not include scope and costs related to consultation or meeting with the USACE. Stantec can provide costs for these services upon request. TASK 400 FINAL ENGINEERING, PLANS, SPECIFICATIONS AND ESTIMATES Stantec will prepare 30%, 60%, 90% and Final Construction Documents, Specifications and Opinion of Construction Costs for the implementation of the overall project based on the following estimated sheet count: Sheet Count Sheet Number Sheet Description 1 G-1 Title Sheet 2 G-2 Index Sheet General Notes 3 G-3 Location Map and Environmental Notes 4 C-1 Rehabilitation Plan and Profile 8+00 to 16+00 5 C-2 Rehabilitation Plan and Profile 16+00 to 24+00 6 C-3 Rehabilitation Plan and Profile 24+00 to 32+00 7 C-4 Rehabilitation Plan and Profile 32+00 to 40+00 8 C-5 Civil Details Temporary Connections 9 C-6 Details No. 1 10 C-7 Details No. 2 11 C-8 Details No. 3 12 C-9 Details No. 4 13 T-1 Traffic Symbols and Abbreviations 14 T-2 Traffic Staging Plans PCH @ First Street 15 T-3 Traffic Control PCH @ First Street 16 T-4 Traffic Details April 9, 2020 Iris Lee, PE, Page 14 of 16 Subject: Hellman Ranch Water Main Rehabilitation Specifications will be prepared in the Greenbook format. It is assumed, the City will provide front end specifications documents to include the Notice to Contractor’s, Contract Documents, Bid Documents, and Standard Specifications. Stantec will prepare Special Provisions and Technical Specifications for bidding and construction purposes. Stantec assumes one set of City review comments for each submittal milestone as defined above. Each submittal shall include 5-11x17 prints for review and comment along with one electronic PDF submittal. TASK 500 – ENGINEERING SERVICES DURING BIDDING Stantec will provide one bid addendum during the Bid and Procurement Phase of the project. Stantec will attend on Pre-bid Meeting in support of City Staff. PROJECT SCHEDULE Stantec proposed to complete the design within 12 months upon Notice to Proceed. Environmental Documentation is estimated to be completed within 18 months upon Notice to Proceed including required permits and environmental clearances. In the event that the project is anticipated to be delayed outside the control of Stantec by any regulatory or environmental agency, Stantec will notify the City within 10 working days of notice. PROJECT FEES Stantec has provided an estimated fee summary as part of this proposal. It is assumed that the Other Direct Costs will be paid by the City and shall include all printing, permit fees and transportation costs incurred by the implementation of the project. The time and material estimated fee is $255,942.30 based on the following cost breakdown: Task Group Stantec Labor Fees Subconsultant Fee 100 – Project Management $23,762.00 200 – Preliminary Engineering $18,808.00 $42,218.30 300 – Environmental Documentation / Studies $70,351.00 400 – Final Engineering Plans, Specifications and Estimates $94,315.00 500 – Bid and Procurement Support $5,488.00 Stantec Consulting Services Inc. 38 Technology Drive, Irvine CA 92618-5312 QA/QC Manager Sr Principal Sr. Project Engineer Engineering Designer Sr. Traffic Engineer Sr. Designer CAD Technician 2-Man Survey Crew Administrative Support Aerial Survey Services Stantec Environmental Services Kleinfelder Geotecnical Investigation Project Billing Rate $224.00 $224.00 $185.00 $158.00 $185.00 $158.00 $147.00 $270.00 $129.00 $1.10 $1.00 $1.05 Total Units 44 64 105 180 30 64 288 16 62 5130 70351 35786 Time and Material $212,724.00 $5,643.00 $37,575.30 $255,942.30 Fee $9,856.00 $14,336.00 $19,425.00 $28,440.00 $5,550.00 $10,112.00 $42,336.00 $4,320.00 $7,998.00 $5,643.00 $70,351.00 $37,575.30 Total $212,724.00 $5,643.00 $37,575.30 $255,942.30 WBS Code Task Name Units Total Hours Labour Expense Sub-Contractor Total 1 Project Management 138 $23,762.00 $0.00 $0.00 $23,762.00 1.1 Weekly Project Update Reporting 16 50 66 $10,034.00 $0.00 $0.00 $10,034.00 1.2 Project Coordination Meetings 12 24 12 12 12 72 $13,728.00 $0.00 $0.00 $13,728.00 2 Preliminary Engineering 100 $18,808.00 $5,643.00 $37,575.30 $62,026.30 2.1 Site Survey and Alignment 4 12 16 5130 32 $7,112.00 $5,643.00 $0.00 $12,755.00 2.2 Geotechnical Investigation 35786 0 $0.00 $0.00 $37,575.30 $37,575.30 2.3 Preliminary Engineering Concept Development 4 32 16 52 $9,168.00 $0.00 $0.00 $9,168.00 2.4 Development of Revised Pipeline Hydraulics 8 8 $1,264.00 $0.00 $0.00 $1,264.00 2.5 Preliminary Opinion of Probable Construction Costs 8 8 $1,264.00 $0.00 $0.00 $1,264.00 3 Environmental Documentation / Studies 0 $70,351.00 $0.00 $0.00 $70,351.00 3.1 Biological Resources Survey and Reporting 9356 0 $9,356.00 $0.00 $0.00 $9,356.00 3.2 Preliminary Wetlands/Waters Jurisdictional Delineation 7795 0 $7,795.00 $0.00 $0.00 $7,795.00 3.3 Regulatory Permitting 0 $53,200.00 $0.00 $0.00 $53,200.00 3.3.1 USACE Section 404 Permit 5982 0 $5,982.00 $0.00 $0.00 $5,982.00 3.3.2 RWQCB Section 401 Water Quality Certification 5982 0 $5,982.00 $0.00 $0.00 $5,982.00 3.3.3 CDFW Streambed Alteration Agreement 5982 0 $5,982.00 $0.00 $0.00 $5,982.00 3.3.4 CEQA Exemption 2500 0 $2,500.00 $0.00 $0.00 $2,500.00 3.3.5 Coastal Development Permit 18000 0 $18,000.00 $0.00 $0.00 $18,000.00 3.3.6 Habitat Restoration Plan 5254 0 $5,254.00 $0.00 $0.00 $5,254.00 3.3.7 Cultural Resources Study 9500 0 $9,500.00 $0.00 $0.00 $9,500.00 4 Plans, Specifications and Estimates 583 $94,315.00 $0.00 $0.00 $94,315.00 4.1 30% Plan and Outlined Specifications 156 $25,546.00 $0.00 $0.00 $25,546.00 4.1.1 30% Construction Plans 8 4 18 18 12 16 64 0 0 140 $23,018.00 $0.00 $0.00 $23,018.00 4.1.2 30% Specification Outline 16 16 $2,528.00 $0.00 $0.00 $2,528.00 4.2 60% Plan and Outlined Specifications 189 $29,797.00 $0.00 $0.00 $29,797.00 4.2.1 60% Construction Plans 8 4 9 36 0 16 100 0 0 173 $27,269.00 $0.00 $0.00 $27,269.00 4.2.2 60% Specification 16 16 $2,528.00 $0.00 $0.00 $2,528.00 4.3 90% Plan and Outlined Specifications 135 $22,117.00 $0.00 $0.00 $22,117.00 4.3.1 90% Construction Plans 8 4 9 18 12 16 52 0 0 119 $19,589.00 $0.00 $0.00 $19,589.00 4.3.2 90% Specification 16 16 $2,528.00 $0.00 $0.00 $2,528.00 4.4 Final Plan and Outlined Specifications 103 $16,855.00 $0.00 $0.00 $16,855.00 4.4.1 Final Construction Plans 8 4 9 0 6 16 56 0 0 99 $16,223.00 $0.00 $0.00 $16,223.00 4.4.2 Final Specification 4 4 $632.00 $0.00 $0.00 $632.00 5 Bid and Procurement Support 32 $5,488.00 $0.00 $0.00 $5,488.00 5.1 Engineering Support During Bidding 8 8 16 $2,744.00 $0.00 $0.00 $2,744.00 5.2 Bid Addendums and Requests for Information 8 8 16 $2,744.00 $0.00 $0.00 $2,744.00 FEE ESTIMATE -Hellman Ranch Water Line Rehabilitation Stantec Consulting Services Inc. 38 Technology Drive, Irvine CA 92618-5312 Should you have any questions or need additional information please contact me directly at 949-413-1620. Regards, Stantec Consulting Services Inc. Joseph Long, PE Senior Principal Phone: 949 923 6011 Fax: 949 923 6121 Joseph.Long@stantec.com Agenda Item I AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Kelly Telford, CPA, Finance Director/Treasurer SUBJECT:Fiscal Year 2020-21 Statement of Investment Policy and Delegation of Authority ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7054 approving the FY 2020-21 Statement of Investment Policy and Delegation of Authority to the Director of Finance/City Treasurer. BACKGROUND AND ANALYSIS: As a best practice, the Statement of Investment Policy should be reviewed and approved by City Council on an annual basis. Additionally, there is a requirement in the Government Code for the delegation by the City Council to the Director of Finance/City Treasurer to occur annually. To ensure that this annual requirement occurs, the Policy will need to be brought before the City Council each year regardless of whether there are any proposed changes to the Policy. The Fiscal Year 2019-2020 Statement of Investment Policy was adopted in December 2019. At that time, the policy was updated to include recent changes in the California Government Code which authorized additional investment options in Asset-Backed Securities and Supranationals. PFM, the City’s Investment Management consultants, reviewed the current Statement of Investment Policy for compliance with the California Government Codes that regulate the investment of public funds, and there are no recommended changes, other than formatting, to the Policy at this time. Therefore, we are requesting approval to reaffirm the existing policy for Fiscal Year 2020-21. ENVIRONMENTAL IMPACT: This action is exempt from the California Environmental Quality Act, because it is not defined as a “project” under CEQA. Page 2 7 8 9 LEGAL ANALYSIS: The City Attorney has reviewed the Statement of Investment Policy to confirm the compliance with the various government codes. 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 7054 approving the Fiscal Year 2020-21 Statement of Investment Policy and Delegation of Authority to the Director of Finance/City Treasurer. SUBMITTED BY: NOTED AND APPROVED: Kelly Telford Jill R. Ingram Kelly Telford, CPA, Finance Director/Treasurer Jill R. Ingram, City Manager Prepared by: Kelly Telford, CPA ATTACHMENTS: A. Resolution 7054 B. FY 2020-21 Statement of Investment Policy RESOLUTION 7054 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE STATEMENT OF INVESTMENT POLICY AND ANNUAL DELEGATION OF INVESTMENT AUTHORITY TO THE DIRECTOR OF FINANCE/CITY TREASURER THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the Fiscal Year 2020-21 Statement of Investment Policy as stated in Exhibit A, attached hereto and incorporated herein by this reference. Section 2. The City Council hereby reauthorizes the delegation of its investment authority and the management of the investment program to the Director of Finance/City Treasurer for a period of one year following the date this Resolution is adopted. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July 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 7054 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 27th day of July, 2020. Gloria D. Harper, City Clerk EXHIBIT A 3 CITY OF SEAL BEACH Statement of Investment Policy SECTION 1 – POLICY This Statement of Investment Policy is intended to identify the policies for prudent investment of temporarily idle funds of the City of Seal Beach (the “City”) by providing guidelines for suitable investments while maximizing the efficiency of the City’s Cash Management Program. The City’s Cash Management Program is designed to accurately monitor and forecast expenditures and revenues, thus enabling the investment of funds to the fullest extent possible. The investment policies and practices of the City of Seal Beach are based upon state law and prudent money management. All funds will be invested in accordance with California Government Code Sections 53601 et seq. and the City’s Investment Policy. SECTION 2 – SCOPE The Investment Policy applies to all funds and investment activities of the City except the investment of bond proceeds, which are governed by the appropriate bond documents, and any pension or other post-employment benefit funds held in a trust. SECTION 3 – PRUDENCE The standard of prudence to be used by investment officials will be the “prudent investor” standard, which states that, “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” EXHIBIT A 4 SECTION 4 – OBJECTIVES The primary objectives, in priority order, of the investment activities of the City are: 1. SAFETY – Safety of principal is the foremost objective of the City of Seal Beach. 2. LIQUIDITY – The City’s portfolio will remain sufficiently liquid to enable the City to meet its cash flow requirements. It is important that the portfolio contain investments which provide the ability of being easily sold at any time with minimal risk of loss of principal or interest. 3. YIELD – The City’s portfolio will be designed to attain a market rate of return through economic cycles consistent with the constraints imposed by its safety objective and cash flow considerations. SECTION 5 – DELEGATION OF AUTHORITY Pursuant to California Government Code Section 53607, the City Council has delegated its investment authority and the management responsibility for the investment program to the Director of Finance/City Treasurer for a period of one year concurrently with the City Council’s adoption of this Investment Policy. This delegation of investment authority is subject to review and annual renewal by the City Council in its discretion, which annual renewal may be made by the City Council in connection with its annual budget adoption or an amendment to this Investment Policy, or at such other time as appropriate and convenient. The Director of Finance/City Treasurer will monitor and review all investments for consistency with this Investment Policy. The Director of Finance/City Treasurer may grant investment decision making and execution authority to an investment advisor, provided that the Director of Finance/City Treasurer exercises prudence in the selection of the investment advisor, imposes suitable safeguards to prevent abuse in the exercise of discretion by the investment advisor, and remains responsible for any investment decisions made by the investment advisor. The advisor will follow the Investment Policy and such other written instructions as are provided. SECTION 6 – INVESTMENT PROCEDURES The Director of Finance/City Treasurer will establish investment procedures for the operation of the City’s investment program. SECTION 7 – ETHICS AND CONFLICT OF INTEREST Officers and employees involved in the investment process will refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions. EXHIBIT A 5 SECTION 8 – AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS If the City is executing transactions on its own behalf, other than those executed directly with issuer, the Director of Finance/City Treasurer will maintain a list of financial dealers and institutions qualified and authorized to transact business with the City. In accordance with California Government Code Section 53601.5, the purchase by the City of any investment other than those purchased directly from the issuer, will be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, which is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a federally regulated securities exchange, a national or state chartered bank, a federal or state association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank. The Director of Finance/City Treasurer will investigate all institutions that wish to do business with the City, to determine if they are adequately capitalized, make markets in securities appropriate for the City’s needs, and agree to abide by the conditions set forth in the City of Seal Beach’s Investment Policy and any other guidelines that may be provided. This will be done annually by having the financial institutions: 1. Provide written notification that they have read, and will abide by, the City’s Investment Policy. 2. Submit their most recent audited Financial Statement within 120 days of the institution’s fiscal year end. If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City, provided that the broker/dealer meets the requirements of the second paragraph, above, in this Section 8. Purchase and sale of securities will be made on the basis of competitive bids and offers with a minimum of three quotes being obtained. SECTION 9 – AUTHORIZED AND SUITABLE INVESTMENTS Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Finance/City Treasurer will perform a timely review and decide whether to sell or hold the investment. The City will limit investments in any one non-government issuer, except investment pools, to no more than 5% regardless of security type. EXHIBIT A 6 1. U.S. Treasury obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. 2. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. This will include any mortgage pass through security issued and guaranteed by a Federal Agency with a maximum final maturity of five years. Purchase of Federal Agency issued mortgage-backed securities authorized by this subdivision may not exceed 20% of the City's investment portfolio; portfolio concentration for all other investments in Federal Agency securities is unrestricted. 3. Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency, or by a department, board, agency or authority of the state or any local agency. 4. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of any of these states. 5. Bankers’ Acceptances with a rating of the highest ranking or highest letter and number rating as provided for by a nationally recognized statistical-rating organization (NRSRO). Purchases of bankers’ acceptances may not exceed 180 days. No more than 40% of the City’s portfolio may be invested in bankers’ acceptances. 6. Commercial Paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper must meet all of the following conditions in either paragraph a or paragraph b: a.The entity meets the following criteria: (i) is organized and operating in the United States as a general corporation, (ii) has total assets in excess of five hundred million dollars ($500,000,000), and (iii) has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. b.The entity meets the following criteria: (i) is organized within the United States as a special purpose corporation, trust, or limited liability company, (ii) has program-wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond, and (iii) has commercial paper that is rated in a rating category of “A-1” or higher, or the equivalent, by a NRSRO. EXHIBIT A 7 Eligible commercial paper will have a maximum maturity of 270 days or less. No more than 25% of the City’s portfolio may be invested in commercial paper. The City may purchase no more than 10% of the outstanding commercial paper of any single issuer. 7. Non-negotiable Certificates of Deposit (time CDs) in a state or national bank, savings association or federal association, or federal or state credit union with a branch in the State of California. In accordance with California Government Code Section 53635.2, to be eligible to receive City deposits, a financial institution will have received an overall rating of not less than “satisfactory” in its most recent evaluation, pursuant to the federal Community Reinvestment Act, by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities. Time CDs are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by federal deposit insurance. The City will have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits will be made at any time in time CDs issued by a state or federal credit union if a member of the City Council or the Director of Finance/City Treasurer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit will not exceed that total shareholder’s equity of any depository bank, nor will the deposit exceed the total net worth of any institution. 8. Negotiable Certificates of Deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- or state- licensed branch of a foreign bank. No more than 30% of the City’s portfolio may be invested in negotiable CDs. 9. Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the U.S. or any state and operating within the U.S. Medium-term corporate notes will be rated in a rating category “A” or its equivalent or better by a NRSRO. No more than 30% of the City’s portfolio may be invested in medium-term notes. 10.Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision these companies will either: (i) attain the highest ranking letter or numerical rating provided by at least two NRSROs or (ii) have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000. In EXHIBIT A 8 addition, an eligible money market fund must maintain a stable net asset value (NAV). No more than 20% of the City’s investment portfolio may be invested in money market funds. 11.State of California’s Local Agency Investment Fund (LAIF) an investment pool run by the State Treasurer. The City can invest up to the maximum amount permitted by the State Treasurer. 12.Shares of beneficial interest issued by a joint powers authority (Local Government Investment Pools) organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. The Pool will be rated in a rating category “AAA” or its equivalent by a NRSRO. To be eligible under this section, the shares will maintain a stable net asset value (NAV) and the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: a.The adviser is registered or exempt from registration with the Securities and Exchange Commission. b.The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) Government Code Section 53601, inclusive. c.The adviser has assets under management in excess of five hundred million dollars ($500,000,000). 13.Asset-Backed Securities (ABS) such as a mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond of a maximum remaining maturity of five years or less. ABS eligible for investment shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO. No more than 20% of the City’s investment portfolio may be invested in ABS. 14.Supranationals. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Obligations issues by supranationals will be rated in a rating category "AA" or better by an NRSRO. No more than 30% of the City’s investment portfolio may be invested in supranationals. EXHIBIT A 9 SECTION 10 – INVESTMENT POOLS/MONEY MARKET FUNDS A thorough investigation of investment pools and money market funds is required prior to investing, and on a continual basis. SECTION 11 – MAXIMUM MATURITY Maturities will be based on an analysis of the receipt of revenues and maturity of investments. Maturities will be scheduled to permit the City to meet all disbursement requirements. The City may not invest in a security whose maturity exceeds five years from the date of purchase unless City Council has provided approval for a specific purpose at least 90 days before the investment is made. SECTION 12 – PROHIBITED INVESTMENTS Investments not described herein, including, but not limited to, reverse repurchase agreements, stocks, inverse floaters, range notes, commercial mortgage-backed, interest-only strips, or any security that could result in zero interest accrual if held to maturity are prohibited for investment by the City. SECTION 13 – INTERNAL CONTROL The Director of Finance/City Treasurer will establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. SECTION 14 – CUSTODY OF SECURITIES All securities owned by the City except time deposits and securities used as collateral for repurchase agreements (if added to this Investment Policy as an authorized investment), will be kept in safekeeping by a third-party bank’s trust department, acting as an agent for the City under the terms of a custody agreement executed by the bank and the City. All securities will be received and delivered using standard delivery versus payment procedures. SECTION 15 – REPORTING The Director of Finance/City Treasurer will provide a monthly investment report to the City Council showing all transactions, type of investment, issuer, purchase date, EXHIBIT A 10 maturity date, purchase price, par amount, yield to maturity, and current market value for all securities. SECTION 16 – POLICY REVIEW This Investment Policy will be reviewed at least annually to ensure its consistency with: 1.The California Government Code sections that regulate the investment and reporting of public funds. 2.The overall objectives of preservation of principal, sufficient liquidity, and a market return. EXHIBIT A 11 Glossary Asset-Backed Securities (ABS) are securities whose income payments and hence value is derived from and collateralized (or "backed") by a specified pool of underlying assets which are receivables. Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can comprise common payments credit cards, auto loans, mortgage loans, and other types of assets. Interest and principal is paid to investors from borrowers who are paying down their debt. Bankers’ Acceptances are short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at maturity. An acceptance is a high-grade negotiable instrument. Broker-Dealer is a person or a firm who can act as a broker or a dealer depending on the transaction. A broker brings buyers and sellers together for a commission. They do not take a position. A dealer acts as a principal in all transactions, buying and selling for his own account. Certificates Of Deposit 1. Negotiable Certificates of Deposit are large-denomination CDs. They are issued at face value and typically pay interest at maturity, if maturing in less than 12 months. CDs that mature beyond this range pay interest semi-annually. Negotiable CDs are issued by U.S. banks (domestic CDs), U.S. branches of foreign banks (Yankee CDs), and thrifts. There is an active secondary market for negotiable domestic and Yankee CDs. However, the negotiable thrift CD secondary market is limited. Yields on CDs exceed those on U.S. treasuries and agencies of similar maturities. This higher yield compensates the investor for accepting the risk of reduced liquidity and the risk that the issuing bank might fail. State law does not require the collateralization of negotiable CDs. 2. Non-negotiable Certificates of Deposit are time deposits with financial institutions that earn interest at a specified rate for a specified term. Liquidation of the CD prior to maturity incurs a penalty. There is no secondary market for these instruments, therefore, they are not liquid. They are classified as public deposits, and financial institutions are required to collateralize them. Collateral may be waived for the portion of the deposits that are covered by FDIC insurance. EXHIBIT A 12 Collateral refers to securities, evidence of deposits, or other property that a borrower pledges to secure repayment of a loan. It also refers to securities pledged by a bank to secure deposits. In California, repurchase agreements, reverse repurchase agreements, and public deposits must be collateralized. Commercial Paper is a short term, unsecured, promissory note issued by a corporation to raise working capital. Federal Agency Obligations are issued by U.S. Government Agencies or Government Sponsored Enterprises (GSE). Although they were created or sponsored by the U.S. Government, most Agencies and GSEs are not guaranteed by the United States Government. Examples of these securities are notes, bonds, bills and discount notes issued by Fannie Mae (FNMA), Freddie Mac (FHLMC), the Federal Home Loan Bank system (FHLB), and Federal Farm Credit Bank (FFCB). The Agency market is a very large and liquid market, with billions traded every day. Issuer means any corporation, governmental unit, or financial institution that borrows money through the sale of securities. Liquidity refers to the ease and speed with which an asset can be converted into cash without loss of value. In the money market, a security is said to be liquid if the difference between the bid and asked prices is narrow and reasonably sized trades can be done at those quotes. Local Agency Investment Fund (LAIF) is a special fund in the State Treasury that local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum of $65 million for any California public agency. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit to the agency’s LAIF account. The State keeps an amount for reasonable costs of making the investments, not to exceed one- quarter of one per cent of the earnings. Market Value is the price at which a security is trading and could presumably be purchased or sold. Maturity is the date upon which the principal or stated value of an investment becomes due and payable. Medium-Term Notes are debt obligations issued by corporations and banks, usually in the form of unsecured promissory notes. These are negotiable instruments that can be bought and sold in a large and active secondary market. For the purposes of California Government Code, the term “Medium Term” refers to a maximum remaining maturity of five years or less. They can be issued with fixed or floating-rate coupons, and with or EXHIBIT A 13 without early call features, although the vast majority are fixed-rate and non-callable. Corporate notes have greater risk than Treasuries or Agencies because they rely on the ability of the issuer to make payment of principal and interest. Money Market Fund is a type of investment comprising a variety of short-term securities with high quality and high liquidity. The fund provides interest to shareholders. Prior to amendments to the money market fund regulations adopted by the U.S. Securities and Exchange Commission in 2014, all money market funds were required to strive to maintain a stable net asset value (NAV) of $1 per share. Following the 2014 money market fund reform, certain money market funds are required to sell and redeem shares based on the current market-based value of the securities in their underlying portfolios rounded to the fourth decimal place (i.e., transact at a floating or fluctuating net asset value (NAV)). Accordingly, money market funds available today may be either a floating NAV money market fund or a stable NAV money market fund. Principal describes the original cost of a security. It represents the amount of capital or money that the investor pays for the investment. Repurchase Agreements are short-term investment transactions. Banks buy temporarily idle funds from a customer by selling him U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date at an agreed upon interest rate. Repurchase Agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal Funds and the maturity of the Repo. Repurchase Agreements must be collateralized. Supranationals are securities issued or unconditionally guaranteed by multi-lateral international financial institutions whose member nations contribute capital and participate in management. U.S. Treasury Issues are direct obligations of the United States Government. They are highly liquid and are considered the safest investment security. U.S. Treasury issues include: 1. Treasury Bills which are non-interest-bearing discount securities issued by the U.S. Treasury to finance the national debt. Bills are currently issued in 4-week, 8- week, 13-week, 26-week, and 52-week maturities. 2. Treasury Notes that have original maturities of one to ten years. 3. Treasury Bonds that have original maturities of greater than 10 years. Yield to Maturity is the rate of income return on an investment, minus any premium above par or plus any discount with the adjustment spread over the period from the date of the purchase to the date of maturity of the bond. 1 4 5 3 2 CITY OF SEAL BEACH Statement of Investment Policy SECTION 1 – POLICY This Statement of Investment Policy is intended to identify the policies for prudent investment of temporarily idle funds of the City of Seal Beach (the “City”) by providing guidelines for suitable investments while maximizing the efficiency of the City’s Cash Management Program. The City’s Cash Management Program is designed to accurately monitor and forecast expenditures and revenues, thus enabling the investment of funds to the fullest extent possible. The investment policies and practices of the City of Seal Beach are based upon state law and prudent money management. All funds will be invested in accordance with California Government Code Sections 53601 et seq. and the City’s Investment Policy. SECTION 2 – SCOPE The Investment Policy applies to all funds and investment activities of the City except the investment of bond proceeds, which are governed by the appropriate bond documents, and any pension or other post-employment benefit funds held in a trust. SECTION 3 – PRUDENCE The standard of prudence to be used by investment officials will be the “prudent investor” standard, which states that, “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” 2 4 5 3 2 SECTION 4 – OBJECTIVES The primary objectives, in priority order, of the investment activities of the City are: 1. SAFETY – Safety of principal is the foremost objective of the City of Seal Beach. 2. LIQUIDITY – The City’s portfolio will remain sufficiently liquid to enable the City to meet its cash flow requirements. It is important that the portfolio contain investments which provide the ability of being easily sold at any time with minimal risk of loss of principal or interest. 3. YIELD – The City’s portfolio will be designed to attain a market rate of return through economic cycles consistent with the constraints imposed by its safety objective and cash flow considerations. SECTION 5 – DELEGATION OF AUTHORITY Pursuant to California Government Code Section 53607, the City Council has delegated its investment authority and the management responsibility for the investment program to the Director of Finance/City Treasurer for a period of one year concurrently with the City Council’s adoption of this Investment Policy. This delegation of investment authority is subject to review and annual renewal by the City Council in its discretion, which annual renewal may be made by the City Council in connection with its annual budget adoption or an amendment to this Investment Policy, or at such other time as appropriate and convenient. The Director of Finance/City Treasurer will monitor and review all investments for consistency with this Investment Policy. The Director of Finance/City Treasurer may grant investment decision making and execution authority to an investment advisor, provided that the Director of Finance/City Treasurer exercises prudence in the selection of the investment advisor, imposes suitable safeguards to prevent abuse in the exercise of discretion by the investment advisor, and remains responsible for any investment decisions made by the investment advisor. The advisor will follow the Investment Policy and such other written instructions as are provided. SECTION 6 – INVESTMENT PROCEDURES The Director of Finance/City Treasurer will establish investment procedures for the operation of the City’s investment program. SECTION 7 – ETHICS AND CONFLICT OF INTEREST Officers and employees involved in the investment process will refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions. 3 4 5 3 2 SECTION 8 – AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS If the City is executing transactions on its own behalf, other than those executed directly with issuer, the Director of Finance/City Treasurer will maintain a list of financial dealers and institutions qualified and authorized to transact business with the City. In accordance with California Government Code Section 53601.5, the purchase by the City of any investment other than those purchased directly from the issuer, will be purchased either from an institution licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, which is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a federally regulated securities exchange, a national or state chartered bank, a federal or state association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank. The Director of Finance/City Treasurer will investigate all institutions that wish to do business with the City, to determine if they are adequately capitalized, make markets in securities appropriate for the City’s needs, and agree to abide by the conditions set forth in the City of Seal Beach’s Investment Policy and any other guidelines that may be provided. This will be done annually by having the financial institutions: 1. Provide written notification that they have read, and will abide by, the City’s Investment Policy. 2. Submit their most recent audited Financial Statement within 120 days of the institution’s fiscal year end. If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City, provided that the broker/dealer meets the requirements of the second paragraph, above, in this Section 8. Purchase and sale of securities will be made on the basis of competitive bids and offers with a minimum of three quotes being obtained. SECTION 9 – AUTHORIZED AND SUITABLE INVESTMENTS Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Finance/City Treasurer will perform a timely review and decide whether to sell or hold the investment. The City will limit investments in any one non-government issuer, except investment pools, to no more than 5% regardless of security type. 4 4 5 3 2 1. U.S. Treasury obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. 2. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. This will include any mortgage pass through security issued and guaranteed by a Federal Agency with a maximum final maturity of five years. Purchase of Federal Agency issued mortgage-backed securities authorized by this subdivision may not exceed 20% of the City's investment portfolio; portfolio concentration for all other investments in Federal Agency securities is unrestricted. 3. Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency, or by a department, board, agency or authority of the state or any local agency. 4. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of any of these states. 5. Bankers’ Acceptances with a rating of the highest ranking or highest letter and number rating as provided for by a nationally recognized statistical-rating organization (NRSRO). Purchases of bankers’ acceptances may not exceed 180 days. No more than 40% of the City’s portfolio may be invested in bankers’ acceptances. 6. Commercial Paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper must meet all of the following conditions in either paragraph a or paragraph b: a.The entity meets the following criteria: (i) is organized and operating in the United States as a general corporation, (ii) has total assets in excess of five hundred million dollars ($500,000,000), and (iii) has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. b.The entity meets the following criteria: (i) is organized within the United States as a special purpose corporation, trust, or limited liability company, (ii) has program-wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond, and (iii) has commercial paper that is rated in a rating category of “A-1” or higher, or the equivalent, by a NRSRO. 5 4 5 3 2 Eligible commercial paper will have a maximum maturity of 270 days or less. No more than 25% of the City’s portfolio may be invested in commercial paper. The City may purchase no more than 10% of the outstanding commercial paper of any single issuer. 7. Non-negotiable Certificates of Deposit (time CDs) in a state or national bank, savings association or federal association, or federal or state credit union with a branch in the State of California. In accordance with California Government Code Section 53635.2, to be eligible to receive City deposits, a financial institution will have received an overall rating of not less than “satisfactory” in its most recent evaluation, pursuant to the federal Community Reinvestment Act, by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities. Time CDs are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by federal deposit insurance. The City will have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits will be made at any time in time CDs issued by a state or federal credit union if a member of the City Council or the Director of Finance/City Treasurer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit will not exceed that total shareholder’s equity of any depository bank, nor will the deposit exceed the total net worth of any institution. 8. Negotiable Certificates of Deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- or state- licensed branch of a foreign bank. No more than 30% of the City’s portfolio may be invested in negotiable CDs. 9. Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the U.S. or any state and operating within the U.S. Medium-term corporate notes will be rated in a rating category “A” or its equivalent or better by a NRSRO. No more than 30% of the City’s portfolio may be invested in medium-term notes. 10.Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision these companies will either: (i) attain the highest ranking letter or numerical rating provided by at least two NRSROs or (ii) have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000. In 6 4 5 3 2 addition, an eligible money market fund must maintain a stable net asset value (NAV). No more than 20% of the City’s investment portfolio may be invested in money market funds. 11.State of California’s Local Agency Investment Fund (LAIF) an investment pool run by the State Treasurer. The City can invest up to the maximum amount permitted by the State Treasurer. 12.Shares of beneficial interest issued by a joint powers authority (Local Government Investment Pools) organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. The Pool will be rated in a rating category “AAA” or its equivalent by a NRSRO. To be eligible under this section, the shares will maintain a stable net asset value (NAV) and the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: a.The adviser is registered or exempt from registration with the Securities and Exchange Commission. b.The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q) Government Code Section 53601, inclusive. c.The adviser has assets under management in excess of five hundred million dollars ($500,000,000). 13.Asset-Backed Securities (ABS) such as a mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond of a maximum remaining maturity of five years or less. ABS eligible for investment shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO. No more than 20% of the City’s investment portfolio may be invested in ABS. 14.Supranationals. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Obligations issues by supranationals will be rated in a rating category "AA" or better by an NRSRO. No more than 30% of the City’s investment portfolio may be invested in supranationals. 7 4 5 3 2 SECTION 10 – INVESTMENT POOLS/MONEY MARKET FUNDS A thorough investigation of investment pools and money market funds is required prior to investing, and on a continual basis. SECTION 11 – MAXIMUM MATURITY Maturities will be based on an analysis of the receipt of revenues and maturity of investments. Maturities will be scheduled to permit the City to meet all disbursement requirements. The City may not invest in a security whose maturity exceeds five years from the date of purchase unless City Council has provided approval for a specific purpose at least 90 days before the investment is made. SECTION 12 – PROHIBITED INVESTMENTS Investments not described herein, including, but not limited to, reverse repurchase agreements, stocks, inverse floaters, range notes, commercial mortgage-backed, interest-only strips, or any security that could result in zero interest accrual if held to maturity are prohibited for investment by the City. SECTION 13 – INTERNAL CONTROL The Director of Finance/City Treasurer will establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. SECTION 14 – CUSTODY OF SECURITIES All securities owned by the City except time deposits and securities used as collateral for repurchase agreements (if added to this Investment Policy as an authorized investment), will be kept in safekeeping by a third-party bank’s trust department, acting as an agent for the City under the terms of a custody agreement executed by the bank and the City. All securities will be received and delivered using standard delivery versus payment procedures. SECTION 15 – REPORTING The Director of Finance/City Treasurer will provide a monthly investment report to the City Council showing all transactions, type of investment, issuer, purchase date, 8 4 5 3 2 maturity date, purchase price, par amount, yield to maturity, and current market value for all securities. SECTION 16 – POLICY REVIEW This Investment Policy will be reviewed at least annually to ensure its consistency with: 1.The California Government Code sections that regulate the investment and reporting of public funds. 2.The overall objectives of preservation of principal, sufficient liquidity, and a market return. 9 4 5 3 2 Glossary Asset-Backed Securities (ABS) are securities whose income payments and hence value is derived from and collateralized (or "backed") by a specified pool of underlying assets which are receivables. Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can comprise common payments credit cards, auto loans, mortgage loans, and other types of assets. Interest and principal is paid to investors from borrowers who are paying down their debt. Bankers’ Acceptances are short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at maturity. An acceptance is a high-grade negotiable instrument. Broker-Dealer is a person or a firm who can act as a broker or a dealer depending on the transaction. A broker brings buyers and sellers together for a commission. They do not take a position. A dealer acts as a principal in all transactions, buying and selling for his own account. Certificates Of Deposit 1. Negotiable Certificates of Deposit are large-denomination CDs. They are issued at face value and typically pay interest at maturity, if maturing in less than 12 months. CDs that mature beyond this range pay interest semi-annually. Negotiable CDs are issued by U.S. banks (domestic CDs), U.S. branches of foreign banks (Yankee CDs), and thrifts. There is an active secondary market for negotiable domestic and Yankee CDs. However, the negotiable thrift CD secondary market is limited. Yields on CDs exceed those on U.S. treasuries and agencies of similar maturities. This higher yield compensates the investor for accepting the risk of reduced liquidity and the risk that the issuing bank might fail. State law does not require the collateralization of negotiable CDs. 2. Non-negotiable Certificates of Deposit are time deposits with financial institutions that earn interest at a specified rate for a specified term. Liquidation of the CD prior to maturity incurs a penalty. There is no secondary market for these instruments, therefore, they are not liquid. They are classified as public deposits, and financial institutions are required to collateralize them. Collateral may be waived for the portion of the deposits that are covered by FDIC insurance. 10 4 5 3 2 Collateral refers to securities, evidence of deposits, or other property that a borrower pledges to secure repayment of a loan. It also refers to securities pledged by a bank to secure deposits. In California, repurchase agreements, reverse repurchase agreements, and public deposits must be collateralized. Commercial Paper is a short term, unsecured, promissory note issued by a corporation to raise working capital. Federal Agency Obligations are issued by U.S. Government Agencies or Government Sponsored Enterprises (GSE). Although they were created or sponsored by the U.S. Government, most Agencies and GSEs are not guaranteed by the United States Government. Examples of these securities are notes, bonds, bills and discount notes issued by Fannie Mae (FNMA), Freddie Mac (FHLMC), the Federal Home Loan Bank system (FHLB), and Federal Farm Credit Bank (FFCB). The Agency market is a very large and liquid market, with billions traded every day. Issuer means any corporation, governmental unit, or financial institution that borrows money through the sale of securities. Liquidity refers to the ease and speed with which an asset can be converted into cash without loss of value. In the money market, a security is said to be liquid if the difference between the bid and asked prices is narrow and reasonably sized trades can be done at those quotes. Local Agency Investment Fund (LAIF) is a special fund in the State Treasury that local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum of $65 million for any California public agency. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit to the agency’s LAIF account. The State keeps an amount for reasonable costs of making the investments, not to exceed one- quarter of one per cent of the earnings. Market Value is the price at which a security is trading and could presumably be purchased or sold. Maturity is the date upon which the principal or stated value of an investment becomes due and payable. Medium-Term Notes are debt obligations issued by corporations and banks, usually in the form of unsecured promissory notes. These are negotiable instruments that can be bought and sold in a large and active secondary market. For the purposes of California Government Code, the term “Medium Term” refers to a maximum remaining maturity of five years or less. They can be issued with fixed or floating-rate coupons, and with or 11 4 5 3 2 without early call features, although the vast majority are fixed-rate and non-callable. Corporate notes have greater risk than Treasuries or Agencies because they rely on the ability of the issuer to make payment of principal and interest. Money Market Fund is a type of investment comprising a variety of short-term securities with high quality and high liquidity. The fund provides interest to shareholders. Prior to amendments to the money market fund regulations adopted by the U.S. Securities and Exchange Commission in 2014, all money market funds were required to strive to maintain a stable net asset value (NAV) of $1 per share. Following the 2014 money market fund reform, certain money market funds are required to sell and redeem shares based on the current market-based value of the securities in their underlying portfolios rounded to the fourth decimal place (i.e., transact at a floating or fluctuating net asset value (NAV)). Accordingly, money market funds available today may be either a floating NAV money market fund or a stable NAV money market fund. Principal describes the original cost of a security. It represents the amount of capital or money that the investor pays for the investment. Repurchase Agreements are short-term investment transactions. Banks buy temporarily idle funds from a customer by selling him U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date at an agreed upon interest rate. Repurchase Agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal Funds and the maturity of the Repo. Repurchase Agreements must be collateralized. Supranationals are securities issued or unconditionally guaranteed by multi-lateral international financial institutions whose member nations contribute capital and participate in management. U.S. Treasury Issues are direct obligations of the United States Government. They are highly liquid and are considered the safest investment security. U.S. Treasury issues include: 1. Treasury Bills which are non-interest-bearing discount securities issued by the U.S. Treasury to finance the national debt. Bills are currently issued in 4-week, 8- week, 13-week, 26-week, and 52-week maturities. 2. Treasury Notes that have original maturities of one to ten years. 3. Treasury Bonds that have original maturities of greater than 10 years. Yield to Maturity is the rate of income return on an investment, minus any premium above par or plus any discount with the adjustment spread over the period from the date of the purchase to the date of maturity of the bond. Agenda Item J AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Philip Gonshak, Chief of Police SUBJECT:Orange County Operational Area Agreement ________________________________________________________________ SUMMARY OF REQUEST: Staff requests that the City Council adopt Resolution 7055 approving the 2020 Orange County Operational Area Agreement of the County of Orange and Political Subdivisions (“Agreement”) and authorize the City Manager to sign the Agreement. BACKGROUND AND ANALYSIS: The Emergency Services Act (“Act”) and the Standardized Emergency Management System, Title 19 California Code of Regulations Section 2409, et seq., require all local governments within a county’s geographic area to coordinate preparedness and response efforts for emergencies. Under the Act, county governments must formally establish their respective operational area and also serve as the OA’s lead agency. The Orange County Operational Area (OCOA) is currently managed through an Operational Area Agreement adopted by the OC Board of Supervisors (Board) on November 17, 1995. The agreement provides for: cooperative and mutual handling of duties and responsibilities of the County; coordination of the emergency functions of the OCOA with public agencies, corporations, organizations, and private persons within the Operational Area; and the preparation and implementation of plans for the protection of persons within the Operational area in the event of an emergency. From time to time, various addenda have been added to the agreement. The OCOA is overseen by an Executive Board with representatives from each emergency response discipline. The Executive Board meets on a quarterly basis, and is responsible for the development, establishment and implementation of the policies of the operational area. In 2017, the Executive Board identified the need to update the operational area agreement to better reflect current best practices and update outdated information. To accomplish this task, the Sheriff-Coroner Department (Sheriff), Emergency Management Division, which serves as staff to the Executive Board, formed a collaborative, multi-jurisdictional Operational Area Page 2 8 0 3 Agreement Revision Working Group to complete a comprehensive review and revision of the document. The revised OCOA Agreement (“Agreement”) becomes effective six months after approval and execution by the County Board of Supervisors and at least one Subdivision. On March 24th, 2020, the Orange County Board of Supervisors approved the Agreement. Accordingly, the Operational Area will begin operating under the new Agreement on September 26, 2020. Although the City is a part of the organizational area regardless of its signatory status as to the agreement, the City Council’s approval of the revised Agreement will make Seal Beach a member of the Agreement’s Signatory Council. Under the Agreement, the City would annually designate one primary and one alternate representative to serve on the Signatory Council. 2020 Updates to the Operating Agreement The revised Agreement has structural and content changes from the original 1995 document. Agreement sections are reorganized to make the document easier to understand and reference, and the document is reformatted to more closely align with the Emergency Management Division’s plan document style guide. The major content changes are outlined below: New Operating Area Executive Board Members Five new Executive Board seats are added to the body to more diversely represent the jurisdictions of the Operating Area. The new seats are designated for: The County Executive Officer The OC Social Services Agency Director The OA Water/Wastewater Mutual Aid Coordinator A representative selected jointly from the OC Community College Districts The OC Transportation Authority Chief Executive Officer OC Emergency Management Organization (OCEMO) Update Since the 1995 operating agreement was approved, OCEMO has transitioned to a simpler model than was outlined in the original document. Several changes are made in the revised Agreement draft to reflect the current operational practices of OCEMO and ensure alignment with the new OCEMO bylaws approved in 2018. Another change is the removal of the OCEMO Representative Board, which has not been in use for a decade or more. The new draft also provides clarity on the nature of the administrative support provided to OCEMO by the County of Orange. OA Coordinator Staffing The 1995 operating agreement specifically outlined which agencies are responsible for staffing the Operational Area Coordinator (OAC) position. At the Page 3 8 0 3 time of approval, this staffing arrangement aligned with the staffing of the Director of Emergency Services (DES) position and was meant to outline additional responsibilities for the DES during an OA-wide incident. Since approval, the County Ordinance that defines staffing for the DES role was updated by Board Resolution #01-212 on July 17, 2001 created a conflict with the original OAC staffing arrangement. To rectify this conflict and to prevent similar issues in the future, the language in the updated draft is streamlined to reference the County Ordinance and Resolution rather than separately defining OAC staffing. OA Finance The revised Agreement includes a significant reworking of language related to operational area finances: grant funding and administration. Relevant language once contained in Addendum Two (See Addendums section below) is now incorporated in the main body of the Agreement. Language referencing specific grant programs is replaced with broader language that reflects the shifting nature of grant funding and the challenges of grant administration. The new language also addresses lessons learned related to the financial aspects of mutual aid and disaster recovery. Addenda As noted above, the 1995 operating agreement has three addenda that addressed various issues brought forth during the development of the original document. Addendum One clarifies roles and responsibilities for the Operating Area, the Executive Board and the OAC. Addendum Two includes documents related to the administration of the Emergency Management Assistance Program grant that no longer exists. Relevant portions of these two addenda are incorporated into the main body of the revised Agreement as appropriate. Addendum Three is the Operating Area Mutual Aid Plan. This critical document will become an attachment to the Unified County of Orange and OCOA Emergency Operations Plan. This will put the Mutual Aid Plan on a more defined schedule of review and revision. Naming and Terminology Changes Several name changes are introduced in the revised Agreement to clarify the differences between the various bodies and positions created by the document. 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 related to this item. Page 4 8 0 3 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 7055 approving the 2020 Orange County Operational Area Agreement of the County of Orange and Political Subdivisions and authorize the City Manager to sign the Agreement. SUBMITTED BY: NOTED AND APPROVED: Philip Gonshak Jill R. Ingram Philip L. Gonshak, Chief of Police Jill R. Ingram, City Manager Prepared by: Sergeant Julia Clasby ATTACHMENTS: A. Resolution 7055 B. 1995 Orange County Operational Area Agreement C. California Code of Regulations Section 2409 D. 2020 Orange County Operational Area Agreement E. OA Agreement Jurisdiction Signature Page RESOLUTION 7055 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL FOR APPROVAL OF 2020 ORANGE COUNTY OPERATIONAL AREA AGREEMENT WHEREAS, the Orange County (OC) Operational Area (OA) Agreement formally creates and organizes the OC OA as required by the Standardized Emergency Management System (SEMS), Title 19 California Code of Regulations Section 2409, et seq. The OC OA was created and the OC OA Agreement approved by the OC Board of Supervisors (Board) on November 17, 1995; WHEREAS, the OC OA Agreement, which was developed through a collaborative process with all affected organizations and jurisdictions, has guided how OC jurisdictions coordinate emergency planning and response activities; WHEREAS, on March 24th, 2020, the Orange County Board of Supervisors approved the 2020 Orange County Operational Area Agreement of the County of Orange and Political Subdivisions and the Operational Area will begin operating under the new Agreement on September 26, 2020. WHEREAS, the City of Seal Beach and the County of Orange are desirous of executing this Agreement as authorized by the City Council and the City Manager. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. That the City Council hereby ratifies the Resolution to approve the 2020 Orange County Operational Area Agreement of the County of Orange and Political Subdivisions. SECTION 2. The City Clerk shall certify as to the adoption of this Resolution. 5 2 1 9 PASSED, APPROVED, and ADOPTED by the City Council at a regular meeting held on the 27th day of July, 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 7055 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a special meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk ORANGE COUNTY OPERATIONAL AREA AGREEMENT OF THE COUNTY OF ORANGE AND POLITICAL SUBDIVISIONS October 3, 1995 Including Addendums: 1. Clarification of Operational Area, OA Executive Board, and Operational Area Coordinator Roles and Responsibilities adopted by Operational Area Executive Board November 6, 1996. 2. Policy and Procedure on Operational Area Administration Financing (including 1997/98 Grant Distribution) adopted by Operational Area Executive Board August 20, 1997.  3. Policy and Procedure on Operational Area Emergency Operations and Mutual Aid Financing (including Orange County Operational Area Mutual Area Plan) adopted by Executive Board August 20, 1997. Attachment B - 1995 Orange County Operational Area Agreement Page 1 of 66 ORANGE COUNTY OPERATIONAL AREA AGREEMENT OF THE COUNTY OF ORANGE AND POLITICAL SUBDIVISIONS October 3, 1995 Attachment B - 1995 Orange County Operational Area Agreement Page 2 of 66 G:\users\OA\Agree/OA Agreement 1 Operational Area Agreement OPERATIONAL AREA AGREEMENT OF THE COUNTY OF ORANGE AND POLITICAL SUBDIVISIONS Table of Contents Subject Page Recitals 1 A. Existing Agreements 1 B. Operational Area Established 2 C. City-County Emergency Management Planning Board 2 D. Local Authority 2 E. Definitions 2 F. Operational Area Council, Executive Board and Subcommittees 3 G. Creation and Powers and Duties of Operational Area Coordinator 13 H. Creation and Powers and Duties of Operational Area Manager 15 I. Operational Area Emergency Plan 16 J. County Specific Responsibilities 17 K. Operational Area Council Member Responsibilities 18 L. Operational Area Expenses and Revenues 19 M. Description, Function and Duties of the Operational Area 20 Emergency Organization N. Activation of the Operational Area Emergency Operations Center 20 O. Effective Date 23 P. Withdrawal 23 Q. Suspension of Voting Privileges 23 R. Indemnification 23 S. Counterparts 23 T. Amendment 23 U. Notice 24 V. Severability 24 Signatures 24 Attachment B - 1995 Orange County Operational Area Agreement Page 3 of 66 G:\users\OA\Agree/OA Agreement 2 Operational Area Agreement OPERATIONAL AREA AGREEMENT OF THE COUNTY OF ORANGE AND POLITICAL SUBDIVISIONS THIS AGREEMENT is entered into this ______ day of _____, 1995, which date is enumerated for purpose of reference only, by and between the County of Orange, hereinafter referred to as “COUNTY,” and all other Political Subdivisions within Orange County, as defined in Government Code Section 8557 (c) of The California Emergency Services Act, Government Code Section 8550 et seq., (“ The Emergency Services Act”), which are signatories hereto, hereinafter referred to as “SUBDIVISIONS”, collectively referred to as the “Parties”. W I T N E S E T H: WHEREAS, it is the intent of the Parties hereto, in accordance with The Emergency Services Act and The Standardized Emergency Management System Regulations, Title 19 California Code of Regulations Section 2400 et seq., to coordinate preparedness and response efforts for the safety of persons and property from the effects of natural, man-made, or war- caused disasters, hereinafter referred to as “emergencies;” and, WHEREAS, the purpose of an Operational Area , as defined in Government Code Section 8605 and Title 19 California Code of Regulations Sections 2403 and 2409, is to manage and coordinate information, resources, and priorities between the COUNTY and all Subdivisions in the geographic area of the County, and to serve as the coordination and communication link with the regional level of the State; and WHEREAS, the declared purposes of this Agreement are to provide for the establishment and direction of the Operational Area; the cooperative and mutual handling of the duties and responsibilities of the Operational Area lead Agency; the coordination of the emergency functions of the Operational Area with all other public agencies, corporations, organizations, and affected private persons; and the preparation and implementation of plans for the protection of persons and property within the Operational Area in the event of an emergency; and WHEREAS, any expenditures made in connection with such emergency activities, including mutual aid activities, shall be deemed conclusively to be for the direct protection and benefit of the inhabitants and property of the Operational Area. NOW THEREFORE, the Parties hereto agree as follows: A. EXISTING AGREEMENTS: Nothing contained in this Agreement shall be construed as superseding or modifying any existing agreements, including mutual aid agreements, except this Agreement supersedes the existing UNIFIED ORANGE COUNTY-CITIES EMERGENCY MANAGEMENT AGREEMENT dated July 14, 1981; and nothing herein shall be construed as preventing any Party from entering into or modifying mutual aid agreements. Attachment B - 1995 Orange County Operational Area Agreement Page 4 of 66 G:\users\OA\Agree/OA Agreement 3 Operational Area Agreement B. OPERATIONAL AREA ESTABLISHED: The entire geographic area of Orange County constitutes an Operational Area for the purposes of emergency mitigation, preparedness, response, and recovery, as required by Title 19 California Code of Regulations Section 2409. C. CITY-COUNTY EMERGENCY MANAGEMENT PLANNING BOARD: For the purposes of COUNTY Ordinance No. 3915 Section 3-1-5 of the Codified Ordinances of the County of Orange, as presently existing or as hereafter amended, the Council created under this Agreement constitutes the City County Emergency Management Planning Board and this Agreement defines its membership, powers, duties, divisions, services and staff. D. LOCAL AUTHORITY: In the event of an actual or threatened emergency, each jurisdiction shall retain the authority provided for by law respecting its jurisdiction. E. DEFINITIONS: The following terms as used in this Agreement shall, unless the context clearly indicates otherwise, have the respective meanings herein set forth below: (1) Operational Area Coordinator shall mean that position affiliated with a public agency as designated in Section G of this Agreement, to provide direction and coordination of the Operational Area during times of emergency. (2) Emergency shall mean the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within the County caused by such conditions as air pollution, civil disturbance, sudden and severe energy shortage, drought, or earthquake or other conditions, the Governor’s warning of an earthquake or volcanic prediction, epidemic, fire, flood, hazardous material release, plant or animal infestation or disease, riot, storm, or war or imminent threat of war, but other than conditions resulting from a labor controversy, which conditions are, or are likely to be, beyond the control of the services, personnel, equipment, and facilities of a Subdivision or County, requiring the combined forces of the Operational Area to manage. (3) Unified command shall mean a unified team effort which allows all agencies with, either geographical or functional responsibility, to manage an emergency by establishing a common set of emergency objectives and strategies. This is accomplished without losing or abdicating agency authority, responsibility or accountability. F. OPERATIONAL AREA COUNCIL, EXECUTIVE BOARD AND SUBCOMMITTEES: (1) Operational Area Council. Title 19 California Code of Regulations Section 2400 et seq. establishing the Standardized Emergency Management System hereinafter referred to as SEMS, allows the COUNTY and all SUBDIVISIONS to have representation in the Operational Area. Therefore, the Operational Area Council, hereinafter referred to as the “Council”, is hereby created to include the signature Parties to this Agreement. The Parties acknowledge that the Council is Attachment B - 1995 Orange County Operational Area Agreement Page 5 of 66 G:\users\OA\Agree/OA Agreement 4 Operational Area Agreement not a separate legal entity and that it is not their intention to form a joint powers authority. a. Membership. All SUBDIVISIONS in the County of Orange ,including cities, school and special districts, and the COUNTY, by approval and execution of this Agreement, are members of the Council. Each Council Member shall designate a representative and an alternate from its governing body to serve as it’s representative. b. Responsibilities. The members of the Council shall have authority over the major policy issues of the Operational Area, as determined by the Executive Board, including the adoption of and amendments to this Agreement and adoption of any Operational Area fees. However, whenever a majority of all members of the Council determine that an issue should be brought before the Council, it shall be done so irrespective of the fact that the Executive Board has failed to identify it as a major policy issue as set forth in the first sentence of this subsection. It is not the intent of this Agreement that there be regular meetings of the Council. The Executive Board shall submit major Operational Area policy issues to Council members for consideration at their respective governing body meetings. The approval by a majority of the governing bodies of all Council members shall be sufficient for adoption of any Operational Area business, including the amendment of this Agreement, and adoption of any Operational Area fees. c. Representatives Meeting. Should it be necessary for the Council to meet, the representative or alternate of each member of the Council, shall be entitled to one vote. The representatives present shall, by majority vote, select a Chair Pro Tem from among the representatives present. A majority of all representatives of the members of the Council shall constitute a quorum for the transaction of business relating to the Operational Area. Unless otherwise provided herein, a vote of the majority of those present and qualified to vote shall be sufficient for the adoption of any motion, resolution or order and to take any other action deemed appropriate to carry forward the objectives of the Operational Area. In the event a tie vote occurs, in order to break the tie, the vote of the Chair Pro Tem shall not be counted. The representatives of the Council may meet as necessary as determined by the Executive Board or as requested by a majority of the members of the Council. (2) Operational Area Executive Board. a. Creation of the Operational Area Executive Board. The Council shall have an Executive Board, hereinafter referred to as Executive Board, consisting of eleven voting members. Attachment B - 1995 Orange County Operational Area Agreement Page 6 of 66 G:\users\OA\Agree/OA Agreement 5 Operational Area Agreement 1) Members. Members are as follows: a) A member of the COUNTY Board of Supervisors b) A representative from the Orange County City Engineers’ and Public Works Directors’ Association c) The Orange County Fire & Rescue Mutual Aid Coordinator d) A representative from the Orange County Fire Chiefs’ Association e) The Orange COUNTY Sheriff-Coroner- Law Enforcement Mutual Aid Coordinator f) A representative from Independent Special Districts of Orange County g) A representative from the Orange COUNTY Health Care Agency- Health Care Mutual Aid Coordinator h) A representative from the Orange County Police Chiefs’ and Sheriff Association i) A representative selected jointly from the Orange County- City Manager’s Association and the League of Cities. j) A representative selected jointly by the Orange County Superintendent of Schools, Community Colleges and School Districts k) A representative from the COUNTY Environmental Management Agency- Public Works Mutual Aid Coordinator 2) Terms, Alternates and Voting. Executive Board members shall be appointed by their respective organization every two years and shall serve at the discretion of their organization for two years. An alternate shall also be designated to serve the same term for each Executive Board member appointed. Each Executive Board member, or alternate in the absence of any voting member, shall be entitled to one vote. A majority of the Executive Board shall constitute a quorum for the transaction of business relating to the Operational Area. Unless otherwise provided herein, a vote of the majority of those present and qualified to vote shall be sufficient for the adoption of any motion, resolution or order and to take any Attachment B - 1995 Orange County Operational Area Agreement Page 7 of 66 G:\users\OA\Agree/OA Agreement 6 Operational Area Agreement other action deemed appropriate to carry forward the objectives of the Operational Area. In the event a tie vote occurs, in order to break the tie, the vote of the Chair shall not be counted. 3) Operational Area Executive Board Chair and Vice-Chair. The Chair and Vice Chair shall be elected every two years by the Executive Board. In the absence of both the Chair and the Vice Chair, the members of the Executive Board present shall, by majority vote, select one of the members present to act as Chair Pro Tem. 4) Meetings. The Executive Board shall meet quarterly or as designated by the Executive Board Chair. b. Responsibilities/Policy/Advisory Duties. The Executive Board shall have responsibility for the overseeing the actions of the Operational Area Manager in the daily operations and administration of the Operational Area. The Executive Board shall also have responsibility for the development, establishment and implementation of the policies of the Operational Area, and shall keep the Council informed of its actions. The Executive Board shall determine which major policy issues of the Operational Area issues require Council members’ approval and shall seek such approval. However, whenever a majority of all members of the Council determine that an issue should be brought before the entire Council, it shall be done so irrespective of the fact that the Executive Board has failed to identify it as a major policy issue as set forth in this subsection. 1) Policy and Operational Area Emergency Plan. The Executive Board is responsible for the establishment of Operational Area policy and the development and implementation by December 1, 1996, of the Operational Area Emergency Plan, including mitigation, preparation, response and recovery, and for the ongoing exercise and maintenance of the plan as required by SEMS. 2) Operational Area Budget and Operating Staff. The Executive Board shall have the responsibility to direct the development of and approve the Operational Area annual operating budget and staffing utilizing resources made available to the Operational Area by the State Office of Emergency Services through the Federal Emergency Management Assistance Program, and to monitor the expenditures of the Operational Area. This shall include the responsibility to seek grants from other sources to sustain the preparedness and response efforts of the Operational Area as further detailed in Section L of this Agreement, and, if necessary, to recommend for adoption by the members of the Council, any Attachment B - 1995 Orange County Operational Area Agreement Page 8 of 66 G:\users\OA\Agree/OA Agreement 7 Operational Area Agreement Operational Area fees to sustain the Operational Area. In the event the Executive Board recommends adoption of fees, the Executive Board shall be responsible for directing the development of and submitting the Operational Area annual budget and staffing to the members of the Council for approval. 3) Laws, Rules, Legislation and Regulations. The Executive Board shall review and recommend for action or adoption by the members of the Council, emergency and mutual aid plans, agreements, ordinances, resolutions, and any rules and regulations necessary to implement such plans and agreements. The Executive Board shall also study, review, and make recommendations on State and Federal legislation and policy as appropriate, and on matters referred to it in writing by Council members. 4) Recovery Operations. During the recovery phase of an emergency, the Executive Board shall provide advice to the members of the Council regarding rebuilding and cost recovery. The Executive Board shall direct the Operational Area Manager, as designated in Section H of this Agreement, to coordinate with the State Office of Emergency Services as needed in this process. 5) Successor to the Operations Coordinator. Due to the changing circumstances and requirements of emergencies, especially in transition from the response to and recovery from an emergency, the Executive Board is hereby given authority to appoint an Operational Area Coordinator to succeed the initial response Operational Area Coordinator designated pursuant to Section G (1) of this Agreement. c. Subcommittees and Technical Advisory Groups. 1) Establishment, Support and Coordination. The Executive Board may establish standing and ad hoc Subcommittees and Technical Advisory Groups to complete its work and to ensure communication and coordination between all interested persons or groups, including but not limited to the COUNTY, SUBDIVISIONS, Orange County Emergency Management Organization, Communications Systems, Transportation, Care and Shelter. Subcommittees and Technical Advisory Groups may each elect a Chairperson and shall provide appropriate staff support from their members. The Operational Area Manager shall provide coordination between these Subcommittees or Technical Advisory Groups and the Executive Board only. Attachment B - 1995 Orange County Operational Area Agreement Page 9 of 66 G:\users\OA\Agree/OA Agreement 8 Operational Area Agreement 2) OCEMO. There is hereby established a standing Subcommittee to the Executive Board, the Orange County Emergency Management Organization, hereinafter referred to as “OCEMO”. All Council members shall be expected to participate in OCEMO, to the maximum extent possible, with the understanding that the cooperative establishment of the Operational Area Plan, policies and procedures, training and exercises is necessary to ensure that the Operational Area Plan, policies, procedures, training and exercises meet the emergency needs of the SUBDIVISIONS, COUNTY, and Operational Area. a) Members. 1. Standing Members. Standing members include the emergency services coordinators designated annually in writing to the Operational Area Manager by each Party which is a signatory to this Agreement. The COUNTY Emergency Manager shall be the COUNTY Standing member. 2. Approved Members. Designated representatives from other public, non-profit and private emergency response, recovery and management agencies may actively participate as approved members in OCEMO Committees. These agencies may include: Orange County Disaster Recovery Alliance, Volunteer Agencies Active In Disasters, American Red Cross, Volunteer Emergency Preparedness Organization, utilities, military bases, universities and colleges, and the State Office of Emergency Services. Membership shall be granted by the Executive Board annually, upon recommendation made by majority vote of standing members of OCEMO. 3. Associate Members. Members of other organizations may participate as non-voting Associate members. b) Voting. Each of the Standing and Approved members shall be entitled to one vote. The Representative Board shall determine the issues which require approval of the voting members of OCEMO. However, whenever a majority of all members of OCEMO determine that an issue should be brought before the entire OCEMO membership, it shall be done so irrespective of the fact that the Representative Attachment B - 1995 Orange County Operational Area Agreement Page 10 of 66 G:\users\OA\Agree/OA Agreement 9 Operational Area Agreement Board has failed to identify it as an issue. It is not the intent of this Agreement that there be regular meetings of OCEMO. Any member of OCEMO may attend and be heard at the Representative Board meetings and participate in Representative Board committees. The Chair may convene a meeting of OCEMO and/or conduct a vote by proxy. Unless otherwise provided herein, a vote of the majority of those qualified to vote shall be sufficient for the adoption of any motion, resolution or order and to take any other action deemed appropriate to carry forward the objectives of the Operational Area. c) Chair and Vice-Chairs. The Chair, First and Second Vice Chair shall be elected annually by the Representative Board and shall serve both as the officers of the Representative Board and OCEMO. In the event a tie vote occurs, the vote of the Chair shall not be counted. In the absence of all officers, the members of the Representative Board present shall, by majority vote, select one of the members present to act as Chair Pro Tem. d) Representative Board. OCEMO shall have a Representative Board, hereinafter referred to as “Representative Board”. 1. Membership. The membership of the Representative Board shall be comprised of the following standing members: a. The COUNTY Emergency Manager/ Operational Area Manager b. The Cities’ Emergency Services Coordinators c. One representative selected jointly by the Orange County Superintendent of Schools, Community Colleges and School Districts d. One representative selected jointly by the Water and Irrigation Districts e. A representative from the Orange County Transportation Authority Attachment B - 1995 Orange County Operational Area Agreement Page 11 of 66 G:\users\OA\Agree/OA Agreement 10 Operational Area Agreement f. One representative selected jointly by the Sanitation Districts g. One representative selected jointly by the Sanitary Districts h. A representative from the Parks and Recreation District i. A representative selected jointly by the Library Districts j. A representative from the Cemetery District k. A representative from the Vector Control District l. A representative from the Storm District m. A representative selected jointly by the Community Services Districts 2. Voting. Each of the Representative Board members shall be entitled to one vote. A majority of the Representative Board shall constitute a quorum for the transaction of business relating to OCEMO. Unless otherwise provided herein, a vote of the majority of those present and qualified to vote shall be sufficient for the adoption of any motion, resolution or order and to take any other action deemed appropriate to carry forward the objectives of the Operational Area. 3. Committees. The Representative Board may establish Committees to accomplish the OCEMO duties. All OCEMO members are expected to participate in the Committees to the maximum extent possible. e) Executive Council. The OCEMO Executive Council shall consist of the OCEMO Chair, First and Second Vice Chair, the immediate past Chair, and the COUNTY Emergency Manager/Operational Area Manager. The Executive Council may meet at the request of the Chair to develop agendas and plans, and to analyze issues to be presented to the OCEMO Representative Board. Attachment B - 1995 Orange County Operational Area Agreement Page 12 of 66 G:\users\OA\Agree/OA Agreement 11 Operational Area Agreement f) Staff Support. The COUNTY shall provide support to the OCEMO Representative Board for agendas and minutes only. Staff support to OCEMO Committees shall be provided by OCEMO members. g) Purpose. As a Subcommittee responsible to the Executive Board, the purposes of OCEMO include the following: 1. Operational Area Plan. Development and maintenance of the Operational Area Emergency Plan as described in SEMS and approved by the Executive Board. 2. Standard Operating Procedures. Development and maintenance of Operational Area standard operating procedures and Operational Area Emergency Operations Center procedures and guidelines for use during emergencies, reviewed and approved by the Operational Area Mutual Aid Coordinators. 3. Emergency Training and Exercises. Coordinate an annual Operational Area exercise as required by SEMS and coordinate training of personnel who are part of the Operational Area Emergency Organization. 4. Efficiency and Effectiveness. Identify, examine and develop plans and programs of concern to all SUBDIVISIONS and the COUNTY, and coordinate the development of appropriate plans and programs leading toward an integrated Operational Area approach to preparedness for emergencies, including use of cost efficient and effective, coordinated public education and individual emergency preparedness programs. 5. Legislation. Review and report on legislation impacting emergency plans and programs and propose concepts for new legislation for consideration by the Executive Board. 6. Plans and Agreements. Review proposals of emergency mutual aid plans and agreements and Attachment B - 1995 Orange County Operational Area Agreement Page 13 of 66 G:\users\OA\Agree/OA Agreement 12 Operational Area Agreement make recommendations on approval of such proposals to the Executive Board. 7. After Action Reports. Develop after action reports for the Executive Board, following emergencies in which the Operational Area is activated. 8. Other. Other duties and responsibilities as delegated by the Executive Board. h) Meetings. The Representative Board shall meet every other month. Special meetings of the Representative Board may be called by the Chair. Committees shall meet twice a month until the Operational Area Emergency Plan and procedures, exercise schedule and training, as required by SEMS are completed, and as necessary thereafter. i) Finances. OCEMO has no authority to bind the COUNTY or any SUBDIVISION to any financial arrangement. d. Operational Area Executive Board Emergency Advisory Capacity. The Executive Board may be convened by the Chair to review the potential or actual emergency situation and make and receive appropriate recommendations from the Operational Area Coordinator, as designated below, and Council members. G. CREATION AND POWERS AND DUTIES OF OPERATIONAL AREA COORDINATOR: (1) Operational Area Coordinator. By this Agreement, Council designates an Operational Area Coordinator, hereinafter referred to as “Coordinator” Based on the type of disaster described below, the initial response Coordinator shall be the incumbent of the position designated below: a. Law Enforcement Mutual Aid Coordinator. The Law Enforcement Mutual Aid Coordinator is designated as the initial response Coordinator for emergencies where evacuation, law and order are of the highest priority as related to earthquake, tsunami, nuclear power plant emergency, civil disturbance, terrorism, or act of war. b. Fire and Rescue Mutual Aid Coordinator. The Fire and Rescue Mutual Aid Coordinator is designated as the initial response Coordinator for emergencies where the life or safety of the public is threatened due to fire, mass casualty emergency, or hazardous materials release. Attachment B - 1995 Orange County Operational Area Agreement Page 14 of 66 G:\users\OA\Agree/OA Agreement 13 Operational Area Agreement c. Public Works Mutual Aid Coordinator. The Public Works Mutual Aid Coordinator is designated as the initial response Coordinator for emergencies where public works or environmental protection resources shall be the primary method used for mitigation and recovery such as during flood, storm, dam failure or oil spill. d. Health Care Mutual Aid Coordinator. The Health Care Mutual Aid Coordinator is designated as the as the initial response Coordinator for emergencies where there is a threat of an epidemic or a declared epidemic. e. Alternates to the Operational Area Coordinator. Each incumbent of a position eligible to act as the initial response Coordinator shall annually designate, in writing by name and in order of succession, a minimum of two alternates. This designation shall be filed with the Operational Area Manager as described in Section H of this Agreement, no later than July 1st of each year. f. Line of Succession. In the event that neither the designated initial response Coordinator nor either of the designated alternates is available to serve in the capacity of the initial response Coordinator, the following line of succession shall be used to ensure continuity of Operational Area operations during times of emergency: 1) Law Enforcement Mutual Aid Coordinator and two designated alternates. 2) Fire and Rescue Mutual Aid Coordinator and two designated alternates. 3) Public Works Mutual Aid Coordinator, and two designated alternates. 4) Health Care Agency Mutual Aid Coordinator and two designated alternates. (2) Unified Command and Joint Operational Area Coordinator. Where appropriate, the Coordinator shall use a unified command, which is standard procedure for emergencies which involve multiple jurisdictions or professional disciplines. (3) Successor to the Initial Response Operations Coordinator. Due to the changing circumstances and requirements of emergencies, especially in transition from the response to and recovery from an emergency, the Executive Board is hereby given authority to appoint successor Operational Area Coordinator(s) to succeed the initial response Operational Area Coordinator designated pursuant to Section G (1) of this Agreement. The successor Coordinator(s) shall have the Attachment B - 1995 Orange County Operational Area Agreement Page 15 of 66 G:\users\OA\Agree/OA Agreement 14 Operational Area Agreement same powers and duties as the initial response Coordinator, as specified in Section G (4) of this Agreement. (4) Powers and Duties. The Coordinator shall direct and coordinate the Operational Area during times of emergency. The Coordinator shall have the following duties and powers: a. Direction and Coordination. Serve as key decision maker, in the Operational Area Emergency Operations Center providing direction and coordination necessary to accomplish the purposes of this Agreement and responsibilities of the Operational Area Lead as specified in Title 19 California Code of Regulations Section 2409 (e). b. Operational Area Representative. Represent the Operational Area in all dealings with the public or private agencies on matters pertaining to emergencies as defined herein. c. Emergency Public Information. Appoint a Public Information Officer to coordinate the dissemination of all emergency information, press releases, and public statements, to prevent conflicting information, misinformation, and the initiation of rumors, as appropriate to the type of emergency confronting the Operational Area. d. Emergency Proclamations. Each SUBDIVISION shall retain the powers and responsibilities granted by law to proclaim an emergency in its jurisdiction, according to procedures set forth by the jurisdiction. The COUNTY Board of Supervisors shall retain the powers and responsibilities granted by law to proclaim an emergency in the County geographic area, according to procedures set forth in COUNTY Ordinance No. 3915 Section 3-1-6 of the Codified Ordinances of the County of Orange and COUNTY Board of Supervisors Resolution 95- 386, as presently existing or as hereafter amended. H. CREATION OF POSITION AND POWERS AND DUTIES OF OPERATIONAL AREA MANAGER: (1) Operational Area Manager. The position of the Operational Area Manager is hereby created. The Operational Area Manager shall be the COUNTY Emergency Manager as specified by COUNTY Ordinance No. 3915, Section 3-1- 6 of the Codified Ordinances of the County of Orange and COUNTY Board of Supervisors Resolution 95-386, as presently existing or as hereafter amended. (2) Powers and Duties. The Operational Area Manager shall have the following powers and duties: Attachment B - 1995 Orange County Operational Area Agreement Page 16 of 66 G:\users\OA\Agree/OA Agreement 15 Operational Area Agreement a. Staff to the Operational Area Executive Board. Serve as staff to the Executive Board, maintain close liaison with the Executive Board, and coordinate all activities of assigned Operational Area staff with the Executive Board. b. Daily Coordination and Assistance. Direct the daily coordination and cooperation between the Operational Area staff and the Operational Area Emergency Organization, and Executive Board Subcommittees, including OCEMO. Resolve questions of authority and responsibility that may arise between them, and work closely with and assist the Executive Board, as required. c. Emergency Operations Center Maintenance. Maintain the Operational Area Emergency Operations Center in a constant state of readiness, providing staff as needed to support the Emergency Operations Center operations during times of emergency in order to coordinate emergency information between the COUNTY and all SUBDIVISIONS, state and federal agencies, and volunteer organizations. d. Notification of Emergency Operation Center Activation. Notify the Executive Board and Board of Supervisors of an Emergency Operations Center activation as soon as practical, and keep the Executive Board and Board of Supervisors informed on all aspects of a current emergency situation as soon as information becomes available. e. OCEMO Support. Provide support to the OCEMO Representative Board for agendas and minutes only. Staff support to OCEMO Committees shall be provided by OCEMO members. f. Budget and Staffing. Develop an annual operating budget and staffing recommendations and monitor the Operational Area expenditures at the direction of and for the approval of the Executive Board. g. After Action Reports. Coordinate with OCEMO the development of after action reports for the Executive Board, following emergencies in which the Operational Area is activated. I. OPERATIONAL AREA EMERGENCY PLAN: Under the direction of the Executive Board, OCEMO shall be responsible for ensuring the development and maintenance of the Operational Area Emergency Plan, which shall provide for the effective mobilization of all of the resources of the Operational Area, both public and private, to meet any condition constituting an emergency; and shall provide for the organization, powers and duties, and staff of the Operational Area Emergency Organization as described in Section M of this Agreement. (1) Compliance. The Operational Area Emergency Plan shall comply with applicable local, state and federal planning criteria, analyze the risks faced by the Attachment B - 1995 Orange County Operational Area Agreement Page 17 of 66 G:\users\OA\Agree/OA Agreement 16 Operational Area Agreement Operational Area, assign functional responsibilities to Mutual aid organizations, COUNTY agencies/departments, SUBDIVISIONS, and personnel, and assign lines of succession for the members of the Operational Area Emergency Organization. (2) Functional assignments. The Operational Area Emergency Plan shall include the functions assigned to the mutual aid organizations, COUNTY agencies/departments and SUBDIVISIONS, and it shall be the responsibility of the agency/department heads and SUBDIVISIONS to appoint coordinators who shall report to the Emergency Operations Center and carry out the assigned duties as appropriate. (3) Adoption. The Emergency Plan shall not be effective until adopted by the Executive Board and a majority of all Council members. J. COUNTY SPECIFIC RESPONSIBILITIES. The COUNTY shall act as the Operational Area Lead Agency. The Operational Area Lead Agency shall have the following responsibilities to the Operational Area in addition to those member responsibilities specified under Section K of this Agreement: (1) 24 Hour Contact Point. The COUNTY shall provide the 24 hour contact point for the Operational Area and act as lead in activating the Operational Area Emergency Operations Center, hereinafter referred to as “OAEOC”. (2) Operational Area Emergency Operations Center. The COUNTY Emergency Operations Center located at 2644 Santiago Canyon Road, in Silverado, California and Alternate Emergency Operations Center, as designated, shall serve as the OAEOC. (3) Initial EOC Activation Staffing. The COUNTY shall provide initial OAEOC activation staff. SUBDIVISIONS with available resources shall provide secondary and relief OAEOC staffing. (4) EOC Maintenance. COUNTY Emergency Management staff shall be responsible for ensuring the OAEOC is maintained in a state of constant readiness. (5) Operational Area Council Executive Board Support. The COUNTY shall provide support to the Executive Board for agendas and minutes for meetings and coordinating follow up only. Staff support to Subcommittees and Technical Advisory Groups shall be provided by Council members and their representatives. (6) OCEMO Support. The COUNTY shall provide support to the OCEMO Representative Board for agendas and minutes only. Staff support to OCEMO Committees shall be provided by OCEMO members. Attachment B - 1995 Orange County Operational Area Agreement Page 18 of 66 G:\users\OA\Agree/OA Agreement 17 Operational Area Agreement K. OPERATIONAL AREA COUNCIL MEMBER RESPONSIBILITIES: Members of the Operational Area Council shall have the responsibilities as set forth below: (1) Participation. Actively participate as a member in the Council, Executive Board if designated, Subcommittees and Technical Advisory Groups including OCEMO, and in the Operational Area Emergency Organization, including providing staff to support the work of the Executive Board, Subcommittees and Technical Advisory Groups. (2) Emergency Plan and Organization. Maintain an emergency plan and organization to provide for the emergency needs in the SUBDIVISION according to SEMS, and coordinate with and, where able, support other SUBDIVISIONS, the COUNTY, and the OAEOC. (3) Emergency Management Program. Develop an emergency management program which shall provide for the needs of the SUBDIVISION, which shall be complementary to and compatible and coordinated with the needs of the Operational Area in the event of an emergency. (4) Emergency Assistance. Provide assistance during an emergency: a. Capabilities and Agreements. SUBDIVISIONS shall offer assistance within the limits of capabilities and according to applicable mutual aid agreements. b. EOC Staffing. SUBDIVISIONS with available resources shall provide secondary and relief OAEOC staffing. (5) Resource list. Maintain a current resource listing of the facilities, equipment and supplies available in the jurisdiction for use in the event of an emergency. (6) Cooperation. Promote cooperation among all SUBDIVISIONS in order to improve the overall Operational Area emergency management program. (7) Training and Exercises. Assure training and exercises within the SUBDIVISION and Operational Area, maintain a thorough knowledge of the Operational Area Emergency Plan and ensure that the supporting services and key personnel are properly trained and organized to meet all of their responsibilities in the event of an emergency. (8) Emergency Notifications. Ensure that internal and Operational Area emergency notification lists are kept current. (9) Procedures. Develop SUBDIVISION procedures which outline the steps necessary to complete tasks as a member of the Operational Area. Attachment B - 1995 Orange County Operational Area Agreement Page 19 of 66 G:\users\OA\Agree/OA Agreement 18 Operational Area Agreement (10) Critical Personnel. Identify at least two alternates for each person deemed critical to SUBDIVISION and Operational Area operations, either to serve in the capacity of the primary contact when (s)he is not available, or to facilitate 24 hour operation when needed in times of emergency. L. OPERATIONAL AREA EXPENSES AND REVENUES (1) Minimum costs/efficiency. All costs shall be kept to a minimum, and efficiencies in use of staff, materials, etc. shall be a priority. (2) Costs of Operational Area EOC Emergency Activation. The COUNTY declares its willingness to provide the Operational Area 24 hour contact point, the OAEOC and initial OAEOC staffing, and to activate the OAEOC as required by SEMS as set forth in Section N (4) of this Agreement. The COUNTY shall exercise prudence in the staffing and level of activation, and shall deactivate the OAEOC when requested by SUBDIVISION(s) or as soon as practical, as allowed by law. The COUNTY is to act as a member of the Operational Area only and shall not be solely responsible for the costs of activating the OAEOC. The Executive Board shall be responsible for the development of policy and procedures similar to other mutual aid agreements where in SUBDIVISION(s) requiring activation of the OAEOC shall be responsible for reimbursement of the COUNTY and other SUBDIVISIONS for the cost of activation, if the COUNTY does not activate the OAEOC for its use, and cannot legally declare an emergency for the purposes of reimbursement from the State or Federal governments. (3) Operational Area Administrative Expenses. The Executive Board shall be responsible for acquisition and distribution of Emergency Management Assistance grant funds, and any other funds, to cover the administrative costs of the Operational Area, including any reimbursement to the COUNTY for services requested of the COUNTY pursuant to this subsection. The Executive Board shall be responsible for determining the potential source of, and for acquiring funds or staff time to match the grant(s). The COUNTY shall provide administrative staffing for the Operational Area, as determined by the Executive Board and/or Council in the annual budget, to carry out the duties as delineated in Section H of this Agreement. The COUNTY is to act as a member of the Operational Area only and shall not be solely responsible for the costs of administering the Operational Area. (4) Emergency Expenses. During emergencies, all Parties shall be expected to participate, according to mutual aid and other agreements, and to the maximum extent possible, with the understanding that during an emergency the priority is life, safety, property and the environment, regardless of which jurisdiction is impacted. (5) Emergency Aid to Parties. Nothing herein shall be construed to restrict or control any Party’s right or ability to apply for or receive emergency aid, loans or Attachment B - 1995 Orange County Operational Area Agreement Page 20 of 66 G:\users\OA\Agree/OA Agreement 19 Operational Area Agreement grants from any source including the State and Federal government. Neither any Party nor the Operational Area shall have any claim upon or interest in any emergency aid funds obtained by any other Party for it’s emergency expenses, with the exception that SUBDIVISIONS may be responsible for reimbursement of OAEOC activation costs as set forth in Section (L) of this Agreement. M. DESCRIPTION, FUNCTION AND DUTIES OF THE OPERATIONAL AREA EMERGENCY ORGANIZATION (1) Description. All officers and employees of the Parties, together with those volunteer forces enrolled to aid them during an emergency, and all groups, organizations, and persons who may by agreement or operation of law, including persons pressed into service under the provisions of COUNTY Ordinance No. 3915 Section 3-1-6 of the Codified Ordinances of the County of Orange as presently existing or as hereafter amended, shall constitute the Operational Area Emergency Organization, and shall be charged with duties incidental to the protection of life and property in the Operational Area during times of emergency. (2) Functions and Duties. The functions and duties of the Operational Area Emergency Organization shall be distributed among such Mutual aid organizations, COUNTY agencies/departments, SUBDIVISIONS, and staff as the Operational Area Emergency Plan shall prescribe. The form of the organization, titles and terminology shall conform to SEMS. N. ACTIVATION OF THE OPERATIONAL AREA EMERGENCY OPERATIONS CENTER (1) Location. The COUNTY Emergency Operations Center located at 2644 Santiago Canyon Rd., Silverado, California, or alternate as designated, shall serve as the OAEOC. Communication connection to the OAEOC shall be the responsibility of each SUBDIVISION and Mutual aid Coordinator or their representative. (2) Virtual Operational Area EOC. The OAEOC shall be used as the communication and coordination center and in so far as possible, function as a virtual OAEOC, utilizing any available telecommunication resources so that Parties may communicate without collocation. However, to ensure communication, it may be necessary for representatives and any support staff they may require to be present at the OAEOC. SUBDIVISIONS not present shall be responsible for establishing direct contact with the OAEOC. (3) Staff for the Operational Area Emergency Operations Center a. OAEOC Maintenance. COUNTY Emergency Management staff shall be responsible for ensuring the OAEOC is maintained in a state of constant readiness. Attachment B - 1995 Orange County Operational Area Agreement Page 21 of 66 G:\users\OA\Agree/OA Agreement 20 Operational Area Agreement b. Initial Activation and Beyond. The COUNTY shall provide initial OAEOC activation staff. SUBDIVISIONS with available resources shall provide secondary and relief OAEOC staffing. emergency management or other mutual aid shall be used to staff the OAEOC as necessary. c. Mutual Aid Coordinators. Mutual Aid Coordinators may be present in the OAEOC, but if not present, shall be responsible for establishing direct contact with the OAEOC. (4) Required Activation: a. Support to Emergency. The Operational Area functions as support to the local government and field response and does not command the emergency response directly. b. Conditions. Activation of the OAEOC is required by SEMS, Title 19 California Code of Regulations Section 2409 (f), under the following conditions: 1) On Request. “A local government within the Operational Area has activated its EOC and requested activation of the Operational Area to support their emergency operations.” 2) Two City Local Emergency. “Two or more cities within the Operational Area have declared or proclaimed a local emergency.” 3) COUNTY and City Local Emergency. “The County and one or more cities have declared or proclaimed a local emergency.” 4) Request for Governor’s Proclamation. “A city, city and County, or County has requested a governor’s proclamation of a state of emergency, as defined in Government Code 8558(b).” 5) State of Emergency. “A state of emergency is proclaimed by the governor for the County or two or more cities within the Operational Area.” 6) Request for Outside Resources. “The Operational Area is requesting resources from outside its boundaries, except those resources used in normal day-to-day operations which are obtained through existing agreements providing for the exchange or furnishing of certain types of facilities and services on a reimbursable, exchange, or other basis as provided for under the Master Mutual Aid Agreement.” Attachment B - 1995 Orange County Operational Area Agreement Page 22 of 66 G:\users\OA\Agree/OA Agreement 21 Operational Area Agreement 7) Request for Operational Area Resources. “The Operational Area has received resource requests from outside its boundaries, except those resources used in normal day-to-day operations which are obtained through existing agreements providing for the exchange or furnishing of certain types of facilities and services on a reimbursable, exchange, or other basis as provided for under the Master Mutual Aid Agreement.” c. Activation Levels. The OAEOC activation levels are described below: 1) Activation Level One. Level One shall mean activation of the OAEOC at a minimum level with COUNTY emergency management staff to prepare the OAEOC and notify the Operational Area Emergency Organization and coordinate information among the members of the Operational Area and with Regional State officials as required by SEMS. 2) Activation Level Two. Level Two shall mean partial activation of the OAEOC, staffed by the Operational Area Coordinator or alternate, COUNTY emergency management personnel, along with personnel from COUNTY agencies/departments and other personnel selected to meet the functional needs of the emergency Operational Area Emergency Organization during times of emergency. 3) Activation Level Three. Level Three shall mean full activation of the OAEOC, including all personnel as indicated at level two plus the Executive Board, who shall serve as the Policy Group to advise the Coordinator on the use of resources in response to the disaster, establish policies, rules and regulations regarding the disaster and the subsequent recovery operations, and prioritize resources to effectively mitigate the disaster. O. EFFECTIVE DATE: This Agreement shall become effective upon the approval and execution by the COUNTY Board of Supervisors and at least one SUBDIVISION. Any SUBDIVISION in Orange County may become a Party hereto by executing this Agreement. Notice shall be provided to the COUNTY upon a SUBDIVISION’s execution of this Agreement as indicated in Section T of this Agreement. P. WITHDRAWAL: Any Party may withdraw from this Agreement by providing written notice to the COUNTY. Said notice shall be given 30 days before withdrawal from this Agreement. Q. SUSPENSION OF VOTING PRIVILEGES: In the event Operational Area fees are adopted, a Party’s failure to pay said fees within 60 days after said fees become due, shall result in the immediate suspension of that Party’s voting privileges in matters considered by any body, Attachment B - 1995 Orange County Operational Area Agreement Page 23 of 66 G:\users\OA\Agree/OA Agreement 22 Operational Area Agreement board, subcommittee, committee, or group established by this Agreement. Voting privileges shall be restored upon payment. R. INDEMNIFICATION: Each Party shall defend, indemnify and hold harmless the other Parties, and their officers, agents, employees and representatives from any and all losses, liability, damages, claims, suits, actions, administrative proceedings, demands, and litigation, and all expenses and costs relating to acts or omissions of the indemnitor, its officers, agents, employees, or representatives arising out of or incidental to performance under this Agreement. No Party assumes liability for the acts or omissions of persons other than that Party’s respective officers, agents, employees or representatives. S. COUNTERPARTS: This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same instrument. T. AMENDMENT: This Agreement may not be amended or modified except in a writing executed by a majority of all Parties. Attachment B - 1995 Orange County Operational Area Agreement Page 24 of 66 ORANGE COUNTY OPERATIONAL AREA AGREEMENT Clarification of Operational Area, Operational Area Executive Board, and Operational Area Coordinator Roles and Responsibilities Addendum 1 Attachment B - 1995 Orange County Operational Area Agreement Page 25 of 66 G:\users\OA\Agree\Roles and Responsibilities 1 OA Agreement: Addendum 1 CLARIFICATION OF OPERATIONAL AREA ROLES AND RESPONSIBILITIES The Operational Area Agreement and Emergency Plan are based on the policies established by the SEMS Regulations; in regard to the role of the Operational Area Coordinator (OAC), Operational Area Executive Board (Executive Board), Operational Area Council (OA Council) and overall Operational Area (OA) operations. OPERATIONAL AREA- PURPOSE, RESPONSIBILITIES AND AUTHORITIES WHERE WHAT SEMS Regulations OA level manages and/or coordinates information, 2403 (3) resources, and priorities among local government within the OA and serves as coordination and communication link with Region. SEMS Regulations The lead agency of the OA shall: 2409 (e) (3) Use multi-agency or interagency coordination to facilitate decisions for overall OA level emergency response activities. Contrast of Authorities between Field Response and OA SEMS Regulations Command is the directing, ordering and controlling 2405 Field Response Level (1) (A) of resources by virtue of explicit legal, agency, or delegated authority. SEMS Regulations OA Level is used by the county and political 2409 (a) subdivisions for the coordination of emergency activities and to serve as a link in the system of communications and coordination between the state’s emergency operations centers and the operations centers of the political subdivisions. SEMS Regulations The lead agency of the OA shall: 2409(e) (1)and (2) Coordinate information, resources and priorities among the local governments and between the regional level and local government level. “Coordination of Fire and Law Enforcement resources shall be accomplished through their respective mutual aid systems”. OA Emergency Plan The OA is a communication and coordination point Management Section Annex A that provides support for Mutual Aid Coordinators, pg 2 OA members and the State. It does not command or control emergency operations. ALSO: OA Emergency Plan Management Section Annex A pg 7 III D 4 a Attachment B - 1995 Orange County Operational Area Agreement Page 26 of 66 G:\users\OA\Agree\Roles and Responsibilities 2 OA Agreement: Addendum 1 EXECUTIVE BOARD RESPONSIBILITIES AND AUTHORITIES The Executive Board is responsible for working with the OAC in setting OA policy and priorities, is notified, convened and co-located with the OAC in the Command Center, is responsible to represent their appointing organizations and the expertise, resources and policies of their organizations and to convene a MACS as appropriate. WHERE WHAT OA Emergency Plan Support the OAC by providing policy and priority Management Section Annex A advice and by convening a MACS as appropriate. Enclosure A-1 pg 1 II A 2 OA Agreement Convene the OA Council (Multi-Agency pg 4 F (1) c Coordination System). ALSO: OA Emergency Plan Management Section Annex A pg 5 III A 5 AND: OA Emergency Plan Management Section Annex A Enclosure A-1 pg 15 IV A OA Agreement Identify OA policy issues for submittal to pg 3 F (1) b OA Council. AND: pg 5 F (2) b OA Agreement Represent expertise and interests of Mutual Aid, pg 4 F (2) a jurisdictional, and professional disciplines. OA Agreement Oversee OA Manager pg 5 F (2) b Develop OA policies and Emergency Plan Develop OA Budget Review and impact legal requirements OA Agreement Advise OA Council on Recovery pg 5 F (2) b 4) OA Agreement Appoint successor to the initial response OAC. pg 7 F (2) b 5) AND: pg 14 G (3) OA Emergency Plan OAC responsibilities may be transferred at the Management Section Annex A discretion of the Executive Board. Due to changing pg 9 III 4 d requirements of emergencies, the Executive Board may appoint successor OAC(s). Attachment B - 1995 Orange County Operational Area Agreement Page 27 of 66 G:\users\OA\Agree\Roles and Responsibilities 3 OA Agreement: Addendum 1 EXECUTIVE BOARD RESPONSIBILITIES AND AUTHORITIES, CONT. WHERE WHAT OA Agreement Review the emergency situation and make and pg 12 F (2) d receive appropriate recommendations to the OAC and OA Council. OA Agreement Be notified and keep apprised of the emergency pg 16 H (2) d situation. OA Agreement Mutual Aid Coordinators may be present, but if not pg 21 L (3) c present, shall be responsible for establishing direct contact with the OA EOC. ALSO: OA Emergency Plan Management Section Annex A pg 7 III D 3 c OA Emergency Plan Executive Board is convened in the Command Management Section Annex A Center with the OAC to ensure communication and AND: coordination. Enclosure A-3 pg 4 OA Emergency Plan Executive Board is notified of activation of the Management Section Annex A EOC, is kept apprised of the situation and is Enclosure A-4 pg 3 and continuing convened by the Chair as appropriate. OA Agreement Activation Level Three shall mean full activation pg 23 N (4) c 3) the OA EOC, including the Executive Board, to advise the OAC on the use of resources in response to the disaster, establish policies, rules and regulations regarding the disaster and the subsequent recovery operations and prioritize resources to also effectively mitigate the disaster. ALSO: OA Emergency Plan The Executive Board and OAC will be responsible Management Section Annex A for establishing a MAC including representatives of pg 8 III D 4 c 3) which continues: affected jurisdictions as appropriate. OA Emergency Plan Description of duties Management Section Annex A Enclosure A-1 pg 6 III C Appendix A-2 Executive Board EOC Checklist Attachment B - 1995 Orange County Operational Area Agreement Page 28 of 66 G:\users\OA\Agree\Roles and Responsibilities 4 OA Agreement: Addendum 1 OAC RESPONSIBILITIES AND AUTHORITIES The OAC is responsible for direction of the OA EOC, for working with the Executive Board in setting OA policies and priorities, and ensuring coordination and communication of policy decisions, resource needs and priorities between OA members and the State throughout the emergency. WHERE WHAT OA Emergency Plan OAC is responsible for management of the OA Management Section Annex A EOC and overall coordination and communication Enclosure A-1, pg 1 II A 1 between the OA members and the state. OA Agreement Where appropriate, the Coordinator shall use a pg 14 G (2) unified command, which is standard procedure for emergencies which involve multiple jurisdictions or professional disciplines. ALSO: Operational Area Emergency Plan Management Section Annex A pg 4 III A 3 e OA Agreement Direct and coordinate the Operational Area, serve as pg 14 G (4) a key decision maker in the OA EOC, providing direction and coordination necessary to accomplish the purposes of the OA Agreement and responsibilities of OA lead agency as specified by SEMS Regulations 2409 (e) see citation above). OA Emergency Plan The OA emergency organization is managed by the Management Section Annex A OAC who reports to the OA Council. The OAC is pg 2 III A supported by advice from the Executive Board and affected jurisdictions in a MACS. OA Emergency Plan The initial response OAC authorizes full activation Management Section Annex A of the OA EOC and responds when appropriate to pg 4 III A e, following paragraph serve as key coordinator; providing direction and coordination necessary to accomplish the responsibilities of the OA EOC. OA Agreement Activation Level Three shall mean full activation of pg 23 N (4) c 3) the OA EOC, including the Executive Board, to advise the OAC on the use of resources in response to the disaster, establish policies, rules and regulations regarding the disaster and the subsequent recovery operations and prioritize resources to also effectively mitigate the disaster. ALSO: OA Emergency Plan The Executive Board and OAC will be responsible Management Section Annex A for establishing a MAC including representatives of pg 8 III D 4 c 3) which continues: affected jurisdictions as appropriate. Attachment B - 1995 Orange County Operational Area Agreement Page 29 of 66 G:\users\OA\Agree\Roles and Responsibilities 5 OA Agreement: Addendum 1 OAC RESPONSIBILITIES AND AUTHORITIES, CONT. WHERE WHAT OA Agreement Represent the OA in dealings with public or private pg 14 G (4) b agencies. OA Agreement Appoint OA Public Information Officer. pg 15 G (4) c ALSO: OA Emergency Plan Description of duties. Management Section Annex A Enclosure A-1pg 4 IIIB AND: Appendix A-1 OAC EOC Checklist. Attachment B - 1995 Orange County Operational Area Agreement Page 30 of 66 ORANGE COUNTY OPERATIONAL AREA AGREEMENT Addendum 2 Attachment B - 1995 Orange County Operational Area Agreement Page 31 of 66 G:\users\OA\Agree\Policy & Procedures 1 O A Agreement: Addendum 2 ORANGE COUNTY OPERATIONAL AREA POLICY AND PROCEDURE Subject: Operational Area Administration Financing (including Use of Emergency Management Assistance Program Grant). Reference: Operational Area Agreement Section L (2), page 19. Background: The Operational Area Executive Board is responsible to prepare a strategic plan and budget for the Operational Area annually, including how the Operational Area will be financed and use of any grant funds. Policy: All grant funds received will be used for the benefit of the Operational Area. Administrative services for the Operational Area will have the first priority for grant funding, as approved by the Operational Area Executive Board. Remaining grant funds will be distributed by the Operational Area Executive Board, consistent with the requirements of the grant funding agency. The goal of any distribution of grant funds shall be to maximize funds for program implementation and minimize costs for accounting and administering the grants. Procedure: 1. The Operational Area Manager shall present an annual administrative budget for review and approval of the Operational Area Executive Board based on the Board’s approved strategic plan. 2. The Operational Area Manager shall present a report on any grant funds available and the requirements to receive the grant. 3. The Executive Board shall have responsibility to approve the budget. 4. The Executive Board shall determine how grant funds will be distributed, with first priority being given to the administrative budget. 5. Grant funds available after Operational Area administrative costs are covered shall be distributed at the discretion of the Board, consistent with the requirements of the grant funding agency. Attachment B - 1995 Orange County Operational Area Agreement Page 32 of 66 G:\users\OA\Agree\Policy & Procedures 2 O A Agreement: Addendum 2 1997 Proposed EMA Grant Funds Distribution 6/20/97 The proposed Operational Area EMA Grant Guidelines are as follows. The assumption is that this grant requires a dollar for dollar match by each organization receiving funds. 1. Only the Operational Area Lead Agency and the 31 cities are eligible to apply for EMA funding. 2. To become an eligible city, the city representative must attend at least half of the OCEMO meetings per year. 3. To become an eligible city, the city must activate its EOC annually either for an actual occurrence or an exercise. 4. To become an eligible city, the city must participate in an Operational Area functional exercise at least once a year. 5. If in the future, funding cuts occur, the OA Lead Agency will receive and is required to match no more than 50% of the total allotment for Orange County. In FY 1997/98 the OA Lead Agency is anticipated to receive $115,773 of an estimated $246,319 allocation. 6. All total city EMA funds will be divided by city population between the cities that are participating in the EMA funding program. Cities must complete the Orange County Operational Area EMA Application Form. Each approved city must compete the Orange County Operational Area EMA activities Form which must be attested to by the City Manager or designee. These forms must be submitted to the OA Executive Board and approved to receive EMA funding. 7. Funding is available regardless of membership status in the Operational Area. 8. The hours to be devoted to emergency management will be determined by state guidelines. The State has required that a city must have at least a 50% employee (20 hours per week) devoted to emergency management. Should the State or FEMA eliminate this criteria, each city should at least identify an employee who will be responsible for the above criteria. Attachment B - 1995 Orange County Operational Area Agreement Page 33 of 66 G:\users\OA\Agree\Policy & Procedures 3 O A Agreement: Addendum 2 Orange County Operational Area EMA Application Form For the period October 1, 1999-September 30, 2000 It is hereby agreed that the City of shall meet the following requirements to receive an Emergency Management Assistance Program Grant: 1. The city representative, , will attend at least half of the OCEMO meetings per year. 2. The city will activate its EOC this year for an exercise, unless it is activated for an actual emergency. 3. The city will participate in the Operational Area functional exercise this year. 4. The City will receive a per capita allocation of the total funds available to cities, dependent upon the number of cities that are participating in the EMA funding program. The city will complete the Orange County Operational Area EMA activities Form which must be attested to by the City Manager or designee. The form will be submitted to the OA Executive Board and approved before any EMA funding will be received. City Manager Signature: Date: Attachment B - 1995 Orange County Operational Area Agreement Page 34 of 66 G:\users\OA\Agree\Policy & Procedures 4 O A Agreement: Addendum 2 Orange County Operational Area EMA Activities Form For the period October 1, 1998 - September 30, 1999 The City of certifies that it has met the following requirements to receive an Emergency Management Assistance Program Grant: 1. The city representative attended at least half of the OCEMO meetings per year. Name: Meetings Attended (Dates): 2. The city activated its EOC this year for an exercise on , Or the city activated its EOC for an actual emergency on . 3. The city participated in the Operational Area functional exercise this year by: (check all that apply) activating its EOC providing staff for the OA EOC providing staff for other jurisdiction’s EOCs providing controllers, simulators or evaluators participating in the OA Exercise Design Committee 4. The City anticipates receipt of $ , per the allocation letter received. This is a per capita allocation of the total funds available to cities, dependent upon the number of cities that are participating in the EMA funding program. 5. The city has met the state requirement for hours to be devoted to emergency management. (The State has required that a city must have at least a 50% employee [20 hours per week] devoted to emergency management.), or (if there are no state requirements), the city identified as the employee who was responsible for the above criteria. Submittal of this form is a request for approval by the OA Executive Board for disbursement of the allocated EMA funding. Attest: Date: (City Manager or Designee) Attachment B - 1995 Orange County Operational Area Agreement Page 35 of 66 ORANGE COUNTY OPERATIONAL AREA AGREEMENT MUTUAL AID PLAN Addendum 3 Attachment B - 1995 Orange County Operational Area Agreement Page 36 of 66 G:\users\OA\Agree\ Mutual Aid Plan 1 O A Mutual Aid Plan – Addendum 3 ORANGE COUNTY OPERATIONAL AREA POLICY AND PROCEDURE Subject: Operational Area Emergency Operations and Mutual Aid Financing Reference: Operational Area Agreement Section L (2), page 19. Background: The Operational Area Executive Board is responsible to approve plans and procedures for the Operational Area emergency operations. It was identified that a policy to ensure OA EOC costs are controlled and allocated would be advantageous to all of the Operational Area members. In addition, it was determined that a mutual aid policy which allowed sharing of human resources beyond those covered by currently existing mutual aid agreements would be desirable both in staffing the OA EOC and other emergency response locations and organizations. Policy: Mutual Aid is requested and provided because it is needed to respond to an emergency, not because it is anticipated that local government will be reimbursed by state or federal disaster funds. Any legally required Operational Area EOC activation lasting less that 12 hours will be provided at no cost to the requesting jurisdiction. Beyond this initial 12 hour activation period, all personnel and equipment costs associated with the emergency shall be the responsibility of the requesting agency, including direct, indirect and equipment costs. Reimbursement claims will be handled by the responding jurisdiction invoicing the requesting jurisdiction for all actual costs, including direct, indirect and equipment costs. Individuals providing Mutual Aid will be responsible for maintaining their own logs time sheets, travel claims and other documentation necessary for reimbursement, this documentation will be submitted to the agency who will invoice the requesting jurisdiction. Upon notification of the request for the activation of the OA EOC, the Operational Area Manager shall discuss the level of activation and staffing with the requesting jurisdiction. After activation, the requesting jurisdiction will also be responsible for determining whether a second shift will be necessary and the level of activation and staffing required. Procedure: 1. The Operational Area activation procedure is found in Appendix D-1 of the Operational Area Emergency Plan. 2. The Operational Area Mutual Aid Plan is attached. Attachment B - 1995 Orange County Operational Area Agreement Page 37 of 66 ORANGE COUNTY OPERATIONAL AREA MUTUAL AID PLAN APPROVED: August 20, 1997 Attachment B - 1995 Orange County Operational Area Agreement Page 38 of 66 G:\users\OA\Agree\ Mutual Aid Plan 3 O A Mutual Aid Plan – Addendum 3 OPERATIONAL AREA MUTUTAL AID DIAGRAM LAW FIRE Local jurisdiction requests/needs assistance Fire requests go through Fire Mutual Aid channels Law requests go through Law Enforcement Mutual Aid channels Everybody else goes through the Operational Area Examples: Plans, clerks, Building Officials, Public Works, etc. OA confirms type of assistance needed Law Mutual Aid received Fire Mutual Aid received Are resources available within Orange County? YES NO OA notifies OES Region 1. Confirms resources and personnel needed Requests matched with available resources throughout Orange County Mutual aid responds to jurisdiction according to OA Mutual Aid Agreement guidelines Mutual aid responds to jurisdiction according to Emergency Manager Mutual Aid (EMMA) Agreement guidelines Attachment B - 1995 Orange County Operational Area Agreement Page 39 of 66 G:\users\OA\Agree\Mutual Aid Plan 4 O A Mutual Aid Plan – Addendum 3 OPERATIONAL AREA MUTUAL AID POLICY This policy has three parts: Part One outlines the policy and procedures; Part Two contains more specific checklists; and Part Three contains forms. PART ONE I. Introduction A. Purpose The purpose of the Operational Area Mutual Aid Policy (OAMA) is to support disaster operations in the Operational Area EOC and effected Orange County jurisdictions by coordinating and providing mutual aid assistance as requested and necessary. B. Objectives 1. Provide emergency response and management personnel to support local jurisdictions and the Operational Area. 2. Coordinate reception, assignment and training of assigned personnel. 3. Maintain the Operational Area Mutual Aid Policy. 4. Coordinate training for Operational Area response personnel through SEMS training, emergency management course work, exercises and actual emergency response. II. Background In 1995, an Operational Area was formed by the Orange County Board of Supervisors to meet the needs and requirements of the Standardized Emergency Management System (SEMS). All cities, special districts and the County in the County of Orange were included as potential members in this agreement, each carrying an equal vote. One of the understandings inherent in this agreement is that all political subdivisions face the potential for emergencies that exceed their capability to respond. Further, it is recognized that the protection of life, property and environment are of first importance, regardless of which jurisdiction is impacted. This policy is designed to provide detailed procedures for use of mutual aid resources within Orange County in the event of an emergency. III. Authorities  California Master Mutual Aid Agreement Attachment B - 1995 Orange County Operational Area Agreement Page 40 of 66 Orange County Operational Mutual Aid Policy Part One G:\users\OA\Agree\Mutual Aid Plan 5 O A Mutual Aid Plan – Addendum 3  Sections 2400-2450 of Title 19, Division 2 of the California Code of Regulations (Standardized Emergency Management System)  California Emergency Services Act  California Labor Code, Section 3211.92 (Disaster Services Worker)  Operational Area Agreement of the County of Orange and Political Subdivisions IV. Assumptions The Operational Area Mutual Aid Policy is based on the following assumptions: A. The main tenet of Mutual Aid operations is that there is full commitment of resources by the requesting jurisdiction prior to the initiation of a mutual aid request. This does not require actual exhaustion of all resources but it does anticipate full mobilization and commitment to the emergency. B. During a Board of Supervisor’s Concurrence, a Governor’s Proclamation of a State of Emergency or a Presidential Disaster Declaration, the OA Manager will designate an OAMA Coordinator. The OAMA Coordinator will facilitate coordination and assignment of OA resources. C. Requests for mutual aid will follow normal Mutual Aid channels consistent with the California Master Mutual Aid Agreement and SEMS. D. Other discipline specific Mutual Aid agreements established outside of this agreement shall take precedence over this agreement (fire, law, medical/health, etc.). E. Local government must use SEMS in order to be eligible for state funding of response related costs pursuant to activities identified in the California Code of Regulations. Associated costs incurred by the jurisdictions providing assistance may be eligible for reimbursement as part of “emergency protective measures.” These measures are described in the National Disaster Assistance Act (NDAA) when a state of emergency has been declared, and by PL 93-288 when there is a Presidential Declaration. V. Organization The OAMA system is composed of emergency management and response personnel from local jurisdictions in the Orange County Operational Area. A. The County, cities and special districts will forward their requests for Mutual Aid to the Operational Area. B. The Operational Area will act as the coordination point for the County, cities and special districts within its boundaries. Attachment B - 1995 Orange County Operational Area Agreement Page 41 of 66 Orange County Operational Mutual Aid Policy Part One G:\users\OA\Agree\Mutual Aid Plan 6 O A Mutual Aid Plan – Addendum 3 C. If a request for assistance cannot be met within Orange County, the request will be forwarded to the designated local OES Region Office. VI. Policies and Procedures A. General 1. Mutual Aid is requested and provided because it is needed to respond to an emergency, not because it is anticipated that local government will be reimbursed by state or federal disaster funds. 2. Any legally required Operational Area EOC activation lasting less than 12 hours will be provided at no cost to the requesting jurisdiction. Beyond this initial 12- hour activation period, all personnel and equipment costs associated with the emergency shall be the responsibility of the requesting agency, including direct, indirect, and equipment costs. 3. Mutual Aid between local jurisdictions will normally be free for the first 12-hour period, unless costs are otherwise agreed upon by both the requesting and the responding agencies. When Mutual Aid assistance between jurisdictions within the Operational Area exceeds the initial 12-hour response period, the requesting agency agrees to pay the responding agency at their actual cost, including direct, indirect and equipment costs. 4. Reimbursement claims will be handled by the responding jurisdiction invoicing the requesting jurisdiction for all actual costs, including direct, indirect and equipment costs. Individuals providing Mutual Aid will be responsible for maintaining their own logs, time sheets, travel claims, and other documentation necessary for reimbursement. This documentation will be submitted to their agency who will invoice the requesting jurisdiction. B. Personnel 1. Minimum criteria for selection of personnel will be completion of the Introduction to SEMS course. 2. All Mutual Aid personnel will receive a general information sheet prior to being dispatched to an assignment. (See Part 3 of the Operational Area Mutual Aid Policy, Dispatch Checklist). 3. Upon arrival, the requesting jurisdiction will brief assigned personnel and provide a procedure manual, all paperwork, tools, and equipment necessary to perform OAMA tasks. 4. The requesting jurisdiction may provide identification badges to OAMA personnel upon their arrival. There is no requirement for special identification. Attachment B - 1995 Orange County Operational Area Agreement Page 42 of 66 Orange County Operational Mutual Aid Policy Part One G:\users\OA\Agree\Mutual Aid Plan 7 O A Mutual Aid Plan – Addendum 3 5. Consistent with the organizational structure of SEMS, the position of OAMA coordinator will be a part of the OA Logistics Section (Personnel Branch). C. Liability 1. Mutual Aid personnel provided under the OAMA policy are public employees, who during disaster situations are considered Disaster Service Workers. Work-related injuries to OAMA personnel will be handled by the responding jurisdiction under Workers’ Compensation that may include the Disaster Service Worker program. All public employees are considered Disaster Service Workers during disaster situations. 2. OAMA personnel act as agents of the requesting jurisdiction, who shall hold harmless the responding jurisdiction from all acts and omissions by their staff while in the services of the requester. 3. The coverage for damage to a personal or local jurisdiction’s vehicle, when the vehicle is being used during an assignment, will be provided for by the requesting jurisdiction. Normal wear and tear is excluded. Any claim for damage may be included in reimbursement claims to the requesting jurisdiction. D. Reimbursable Costs 1. Unless other arrangements are made, reimbursable time begins 12 hours after check in at the assigned Emergency Operations Center (or other assigned location). It includes all actual costs - direct, indirect and equipment costs. 2. Reimbursable travel begins 50 miles from point of departure, whether it is home or work. 3. The requesting jurisdiction is responsible for providing reasonable lodging or reimbursing the responding jurisdiction for lodging expenses. This includes food and reasonable miscellaneous expenses. E. Procedures for Reimbursement 1. The requesting jurisdiction’s Finance Section or designated agency will provide the responding personnel with all of the necessary forms for the responding jurisdiction’s designated Finance Department to complete for reimbursement. Necessary instructions will be given to the responding personnel enabling them to keep accurate records. 2. The responding jurisdiction will provide expedient billing information to the requesting jurisdiction. 3. The requesting jurisdiction will process any requests for reimbursement through their Finance Section. Attachment B - 1995 Orange County Operational Area Agreement Page 43 of 66 Orange County Operational Mutual Aid Policy Part One G:\users\OA\Agree\Mutual Aid Plan 8 O A Mutual Aid Plan – Addendum 3 4. The responding jurisdiction is responsible for providing timely reimbursement for their own personnel. 5. The requesting jurisdiction will provide reimbursement to the responding jurisdiction, not to individuals. 6. Record keeping will be consistent with the conditions of the Natural Disaster Assistance Act (NDAA) and the Stafford Act (PL 93-288). F. Training 1. All OAMA personnel available for assignment are to complete the Introduction to SEMS course or equivalent prior to being dispatched for Mutual Aid assistance. This course is available through local OES offices and the Operational Area. VII. Responsibilities A. All jurisdictions in the Orange County Operational Area are responsible for: 1. Reviewing and understanding the OAMA policy. 2. Identifying procedures and training staff to integrate mutual aid coordination into their emergency organization. 3. Participating in exercises at the local level and Operational Area level as well as completing necessary SEMS training. 4. Participating in the Mutual Aid program as defined by the Master Mutual Aid Agreement and this Policy. VIII. Concept of Operations A. Activation 1. The system can be activated for small, single-jurisdictional emergencies or for large-scale disasters involving multiple emergencies. 2. Local government requests for Mutual Aid are made to the Operational Area. The Operational Area is responsible for coordinating Mutual Aid within its area. 3. Mutual Aid requests that the Operational Area is unable to fill will be forwarded to the local designated OES Region Office. 4. During all levels of activation, local jurisdictions will coordinate information on resource utilization through the Operational Area EOC. B. Deactivation Attachment B - 1995 Orange County Operational Area Agreement Page 44 of 66 Orange County Operational Mutual Aid Policy Part One G:\users\OA\Agree\Mutual Aid Plan 9 O A Mutual Aid Plan – Addendum 3 1. Prior to deactivation, each individual providing Mutual Aid will complete the requesting agency’s deactivation paperwork, including an OAMA Exit Survey Form, and submit it to the requesting jurisdiction. 2. Each person assigned to Mutual Aid assistance will submit all reimbursement documentation to their agency’s Finance Department/Finance Section. The responding jurisdiction will document all costs and invoice the requesting jurisdiction. 3. The requesting jurisdiction will process all claims for reimbursement. Reimbursement will be made directly to the responding jurisdictions, not to individuals. It is the responsibility of the responding jurisdiction to provide their personnel with timely reimbursement. 4. The OAMA Coordinator or the Logistics Section/Personnel Branch Coordinator will submit an After-Action Report, copies of the OAMA Exit Survey, and OAMA Evaluation Forms to the Operational Area Emergency Operations Center Manager with recommendations for improvements. IX. Standardized Emergency Management System (SEMS) The Standardized Emergency Management System (SEMS) incorporates the five functions: management/command, planning/intelligence, operations, logistics, and finance/administration, consistently from the local government level to the state level. All phases of the OAMA system are to operate consistent with SEMS regulations. X. Appendices  California Master Mutual Aid Agreement  Sections 2400 - 2450 of Title 19, Division 2 of the California Code of Regulations (Standardized Emergency Management System - SEMS)  California Labor Code, Section 3211.92 (Disaster Service Worker)  Natural Disaster Assistance Act, Chapter 7.5 of Division 1 of Title 2 of the Government Code  Operational Area Agreement of the County of Orange and Political Subdivisions Attachment B - 1995 Orange County Operational Area Agreement Page 45 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 10 O A Mutual Aid Plan – Addendum 3 PART TWO Checklists The following checklists are provided:  Local Jurisdiction  Operational Area  OAMA Coordinator Each checklist is further divided into the following format:  Normal day-to-day operations  Activation for jurisdictions requesting and responding to mutual aid requests  Deactivation Attachment B - 1995 Orange County Operational Area Agreement Page 46 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 11 O A Mutual Aid Plan – Addendum 3 I. Local Jurisdiction A. Normal Day-to-Day Operations  Review the OAMA plan and familiarize yourself with the procedures.  Brief your local officials on the benefits of OAMA.  Obtain authority to participate in the OAMA program from your local officials.  Review personnel and union policies regarding overtime.  Develop and regularly update, a filing system or data base where resources available for the OAMA program can reside and be immediately accessed.  Work with your operational area to ensure you receive information on OAMA resources in the operational area.  Develop emergency kits for your personnel in the event they are activated (include this document in each kit). Plan for them to be self-sufficient.  Identify roles and procedures for personnel you may receive through activation of OAMA. (Include an orientation packet with necessary forms.)  Incorporate the use of OAMA into local exercises and drills.  Participate in operational area or regional exercises and drills that include the use of the OAMA plan. B. Activation (Requesting Jurisdiction)  Declare a local emergency.  Identify the position to be filled when making your request for mutual aid.  Complete OASIS Resource Request Form identifying positions or tasks to be performed; describe particular skills needed to fill the position for which mutual aid is being requested. Include where and when to report and to whom. (See Resource Request Form in Part Three). Submit the request through your operational area.  Negotiate the specific terms and condition of aid with the agency providing mutual aid.  Ensure your logistics branch has arranged for lodging and local transportation for incoming personnel. (See OAMA Dispatch Checklist in Part Three.)  Provide responding OAMA personnel with orientation packet including copies of time sheets, daily activity logs, and travel claim forms. Make certain copies are available for Attachment B - 1995 Orange County Operational Area Agreement Page 47 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 12 O A Mutual Aid Plan – Addendum 3 additional incoming personnel. (See OAMA Check-In and Check-Out Form in Part Three.)  Brief responding mutual aid personnel on: the situation, their duties, support staff, who they report to, and the anticipated duration of their assignment. (See OAMA Personnel Check-In/Check-Out in Part Three.)  Conduct periodic review/evaluation of assignments and make necessary adjustments. Forward changes to the OAEOC. (See Operational Area Resources Request Tracking Form in Part Three.) C. Activation (Responding Jurisdiction)  Verify that the requesting jurisdictions have declared a local emergency.  Establish ground rules for costs, duration, and personnel assignments from requesting agency.  Forward information and specific details to responding personnel. (See OAMA Dispatch Checklist Form in Part Three.)  Inform your operational area of the mission, duration, assignment and other particulars relating to OAMA resource requests.  Maintain records of mutual aid resources sent.  Establish contact with the OAMA Coordinator at the Operational Area, provide status updates when personnel are dispatched and released from their assignment. D. Deactivation (Requesting Jurisdiction)  Prior to deactivation ensure responding personnel have completed all necessary paperwork including an OAMA Exit Survey Form. Forward a copy of the exit survey to the operational area. (See OAMA Exit Survey Form in Part Three.)  Complete an OAMA Evaluation Form and forward with a copy of the After Action Report to the operational area logistics section. (See OAMA Evaluation Form in Part Three.)  Follow up on all open or unresolved actions. Confirm that responding jurisdictions have been notified of appropriate agency/department (include address and phone number) where information is to be forwarded.  Forward copies of time sheets, daily activity logs and travel claim forms to your agency's finance officer for reimbursement processing.  Conduct exit inspection of vehicles, assure travel routes are clear. Personnel rested prior to release. Attachment B - 1995 Orange County Operational Area Agreement Page 48 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 13 O A Mutual Aid Plan – Addendum 3 E. Deactivation (Responding Jurisdiction)  Prior to deactivation ensure responding personnel have completed all necessary paperwork including an OAMA Exit Survey Form. (See OAMA Exit Survey Form in Part Three.)  Forward copies of time sheets, daily activity logs and travel claim forms to your agency's finance officer for reimbursement processing.  Follow up on all open assignments. Forward status report to your operational area. Attachment B - 1995 Orange County Operational Area Agreement Page 49 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 14 O A Mutual Aid Plan – Addendum 3 II. Operational Area A. Normal Day-to-Day Operations  Review the OAMA plan and familiarize yourself with the procedures.  Work with your local jurisdictions and OEMS Regional Administrator to ensure you receive information on OAMA resources in your OES region.  Develop and update regularly, a filing system or data base where the OAMA Program resources can reside and be immediately accessed.  Provide the OES Regional Administrator with updated information on local jurisdictions and operational area resources.  Identify roles and procedures for personnel you may receive through activation of OAMA.  Participate in exercises and drills of the OAMA plan. B. Activation (Requesting Operational Area)  Verify local jurisdiction's emergency declaration.  Assess needs of local jurisdictions and process their requests. (See OAMA Needs Assessment Form in Part Three.)  Identify the positions or tasks that need to be filled in your request for mutual aid. Include where and when to report and to whom. (See Operational Area Resource Request Form in Part Three.)  Review data base to determine what personnel best fit the request.  Contact the local jurisdiction directly if they are in your operational area to request assistance. If assistance is needed from outside your operational area, process your request through your OES Regional Administrator.  Forward a copy of your request to your OES Regional Administrator or regional EMMA Coordinator.  Coordinate the negotiation of the specific terms and conditions of aid with the party that will provide it.  Ensure arrangements have been made for lodging and local transportation for incoming personnel. (See OAMA Dispatch Checklist Form in Part Three.)  Upon receiving mutual aid, ensure that personnel are briefed on the situation, their duties, whom they report to, and the duration. (See OAMA Check-In and Check-Out Form in Part Three.) Attachment B - 1995 Orange County Operational Area Agreement Page 50 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 15 O A Mutual Aid Plan – Addendum 3 C. Activation (Responding Operational Area)  Establish contact with the regional OAMA coordinator or logistics branch.  Coordinate mutual aid requests from your OES Administrative Region to local jurisdictions.  Ensure your OES Regional Administrator is informed of your personnel availability and other particulars, in the event that the situation becomes worse and more resources are needed.  Receive instructions and forward specifics to responding personnel. (See OAMA Dispatch Checklist Form in Part Three.)  Provide updated status reports on OAMA mutual aid to regional EMMA Coordinator or Logistics Branch. (See Operational Area Resources Request Tracking Form in Part Three.) D. Deactivation  Ensure personnel, prior to departure, complete an exit survey and forward a copy of the exit interview to the EMMA Coordinator at the REOC. (See OAMA Exit Survey and OAMA Personnel Check-In/Check-Out Forms.)  Ensure all documentation (including copies of time sheets, travel claims, daily logs and other supporting documentation) has been received from the responding jurisdiction and forwarded to the accounting department for processing.  Identify areas needing improvement and include comments with your after action report to your OES Regional Administrator. (See OAMA Evaluation Form in Part Three.)  Update and correct information in your data base that was lacking or incorrect. Attachment B - 1995 Orange County Operational Area Agreement Page 51 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 16 O A Mutual Aid Plan – Addendum 3 III. OAMA Coordinator Requests for OAMA resources will be handled by the OAEOC's Logistics Section. Depending upon the escalation of resource requests, most requests will be handled by the Personnel Branch Coordinator. When activated the position of OAMA Coordinator will be located within the EOC's Logistics Section as part of the Personnel Branch at each level of SEMS. The Personnel Branch or OAMA Coordinator is responsible for coordinating all emergency management personnel mutual aid requests received at or within their EOC, identifying sources of personnel support, requesting and assigning personnel as needs are identified. A. Normal Day-to-Day Operation (Non-Active Status)  Review the OAMA plan and familiarize yourself with the procedures and the OAMA Coordinator position and duties.  Become familiar with emergency management and response personnel within your area. Be aware of the anticipated needs and skills of people within your area.  Assist in the development and participate in an annual exercise of the OAMA plan. B. Activation Note: During a declared emergency, when activated the OAMA Coordinator reports to the Operational Area Emergency Operations Center. The OAMA Coordinator is then assigned to the Logistics Section-Personnel Branch.  Check-in with the Operational Area EOC Manager and Logistics Section Chief.  Obtain briefing on situation.  Set up branch workstation, use kit materials and on-site supplies. Familiarize yourself with OAEOC location and personnel.  Open and maintain branch logs.  Establish contact with other levels of SEMS which are operational (local, operational area and region EOC's).  Determine status of OAMA resource requests and needs. (See OAMA Resource Needs Assessment Form in Part Three.)  Attend all EOC briefings and meetings.  Coordinate with other branches and advise them of OAMA Coordinator position activation. Attachment B - 1995 Orange County Operational Area Agreement Page 52 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 17 O A Mutual Aid Plan – Addendum 3  Oversee recruitment process and placements. The OAMA Coordinator will ensure requesting jurisdictions have made lodging arrangements for OAMA mutual aid personnel deployed.  Communicate with appropriate EOC to verify tracking number assignment, that recruited OAMA personnel have been assigned, OAMA Dispatch Checklist Form has been faxed, and estimated time of arrival, along with duration of assignment has been confirmed.  Determine future personnel needs based upon situations which are predicted to occur.  Maintain information regarding:  Mutual Aid requests for personnel being processed.  OAMA personnel assigned by agency/location  OAMA personnel in standby status  Mutual Aid requests not filled by category.  Attend all planning meetings.  Provide situation report and resource information to Logistics Branch Chief, and Planning/Intelligence Section. Update on a periodic basis or as the situation changes.  Keep Logistics Section Chief apprised of OAMA personnel needed and potential emergency manager and response personnel needs. (See Situation Summary Form in Part Three.)  Track OAMA personnel processed by the Logistics Branch. Controls must be established for the accountability of personnel used. When relieved from duty, personnel should be documented as released (include date and time). Maintain current status and overall placement at all times. (See Operational Area Resource Request Tracking Form in Part Three.)  Maintain personnel files for OAMA personnel which the branch has recruited and conduct intake orientation. Verify that all OAMA mutual aid personnel deployed have been documented for Worker's Compensation coverage.  Identify any operational problems and take corrective actions. If personnel issues exist consult with the Logistics Branch Chief and OAEOC Administrator to resolve.  Ensure orientation packets are developed and provided to personnel assigned to you. Packets should include at a minimum: daily activity logs, travel claim forms, time sheets, OAMA Check-In/Check-Out Form and OAMA Exit Form.  Distribute all forms for reimbursement to OAMA personnel assigned to your EOC level. Document all non-personnel costs. Coordinate distribution and return of cell phone, pagers and other field supplies. (See OAMA Check-In/Check-Out Form in Part Three.) Attachment B - 1995 Orange County Operational Area Agreement Page 53 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 18 O A Mutual Aid Plan – Addendum 3  Participate in action planning meetings, provide input to situation reports, share status information with Operations Section, Planning/Intelligence Section, and other branches as appropriate.  Keep other levels of Logistics Section - Personnel Branch - OAMA Coordinators apprised of overall situation and status of resource requests.  Evaluate the efficiencies and effectiveness of the Program. (See OAMA Evaluation Form in Part Three.)  Conduct exit surveys of OAMA participants at your level and forward copies to the next appropriate level. (See OAMA Exit Survey Forms.)  Brief your replacement.  Complete After Action Comments. (See OAMA Evaluation Form in Part Three.)  Develop long-range planning to identify potential problems and solutions. C. Deactivation  Deactivate the position and close out logs when authorized by Logistics Section Chief.  Ensure all deactivated OAMA personnel at your level complete all paperwork including the Exit Survey Form prior to your release and departure. (See OAMA Exit Survey Form in Part Three.)  Schedule and notify all personnel of the time and place for an internal critique. Ensure all personnel are notified of any After Action Critiques.  Provide input to the internal after action critique. Document findings of internal after action critique. Develop recommendations for program improvement. Identify additional costs that need to be addressed in future activations of the system.  Ensure all logs, action plans, and activity records are collected. Turn in all records to EOC Logistics Section Chief.  Ensure personnel deactivated turn in all supplies. (See OAMA Personnel Check- In/Check-Out Form.)  Ensure that any open actions are assigned to appropriate agency, OAEOC or REOC element for follow up.  Complete After Action Report including local jurisdiction evaluations of personnel assigned to them and mutual aid personnel exit interviews. Provide OES Regional Administrator with copy of report. Attachment B - 1995 Orange County Operational Area Agreement Page 54 of 66 Orange County Operational Mutual Aid Policy Part Two G:\users\OA\Agree\Mutual Aid Plan 19 O A Mutual Aid Plan – Addendum 3  Update internal procedures from "lessons learned" in After Action Report. Attachment B - 1995 Orange County Operational Area Agreement Page 55 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 20 O A Mutual Aid Plan – Addendum 3 PART THREE Forms This section contains the minimum number of forms that are necessary for the OAMA Program. Additional forms may be developed as this program matures through use. Specific forms are referenced in the checklists in Part Two (in bold parenthesis). Forms  Operational Request for Jurisdiction Initial Damage Report  Jurisdiction Status Report to Operational Area  OAMA Resource Needs Assessment Form  OAMA Dispatch Form  OAMA Check-In and Check-Out Form  OAMA Exit Survey Form  OAMA Evaluation Form  Resource Request Form (OASIS Form #160-1/93)  Operational Area Resource Request Tracking Form (OASIS Form #17 - 1/93) Attachment B - 1995 Orange County Operational Area Agreement Page 56 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 21 O A Mutual Aid Plan – Addendum 3  THIS IS A DRILL  THIS IS NOT A DRILL OPERATIONAL AREA REQUEST FOR JURISDICTION INITIAL INCIDENT IMPACT REPORT ***IMMEDIATE RESPONSE REQUIRED FROM EMERGENCY SERVICES COORDINATOR*** FROM: County of Orange Sheriff-Coroner/Emergency Management Phone: 714) 628-7055 or 628-7060 FAX: (714) 628-7154 DUE TO __________________________________________ the Operational Area EOC has been activated as of (date) _____________ (time) __________. Immediate response to the following is required from all Orange County Jurisdictions. Date: __________ Time: ______________ Jurisdiction Name: ___________________________________________________________ Contact Name: ___________________________________________Phone:_____________ Dir. of Emerg. Srvs. Name: __________________________________Phone: ____________ THIS JURISDICTION’S EOC  IS  IS NOT ACTIVATED AT THIS TIME EOC PHONE: ____________________ FAX: ________________________ THIS JURISDICTION  HAS  HAS NOT BEEN IMPACTED Impact is:  Major  Moderate  Minor  Routine Prognosis: No Change Worsening Improving Details Attached:  Fact Sheet  Map  Other _____________________ LOCAL EMERGENCY DECLARED OR BEING CONSIDERED: Yes  NO REQUEST FOR OPERATIONAL AREA EMERGENCY DECLARATION: Yes  NO REQUEST FOR GOVERNOR’S DECLARATION: Yes  NO REQUEST OA EOC BE ACTIVATED: Yes  NO REQUEST OA EOC TO STANDBY: Yes  NO THE FOLLOWING RESOURCES ARE: NEEDED  Fire  Public Works  Medical/Health  Police  Bldg. Inspectors Mental Health  Dispatch  PIO  Shelter  EOC Staff  Other ______ AVAILABLE  Fire  Public Works  Medical/Health  Police  Bldg. Inspectors Mental Health  Dispatch  PIO  Shelter  EOC Staff  Other ______ FAX IMMEDIATELY TO OA EOC AT (714) 628-7154 Attachment B - 1995 Orange County Operational Area Agreement Page 57 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 22 O A Mutual Aid Plan – Addendum 3  THIS IS A DRILL  THIS IS NOT A DRILL JURISDICTIONAL STATUS REPORT TO THE OPERATIONAL AREA ***IMMEDIATE RESPONSE REQUIRED BY OPERATIONAL AREA*** CONTROL ONE SUPERVISOR OA EOC FAX (714) 628-7008 FAX: (714) 628-7154 Date: __________ Time: ______________ Jurisdiction Name: ___________________________________________________________ Contact Name: ___________________________________________Phone:_____________ 24 Hour Phone: __________________________________________Phone: _____________ Alternate Contact: ________________________________________Phone: _____________ Due to: _____________________________________________________our EOC has been activated as of (date) ___________________ (time) ______________________. Immediate acknowledgment of the following report is required from the Operational Area. THIS JURISDICTION  HAS  HAS NOT BEEN IMPACTED AT THIS TIME Impact is:  Major  Moderate  Minor  Routine Damage report and details are:  Attached  To be sent later Prognosis: No Change Worsening Improving Deaths: Yes No Unknown Injuries: Yes No Unknown LOCAL EMERGENCY DECLARED OR BEING CONSIDERED: Yes  NO REQUEST FOR OPERATIONAL AREA EMERGENCY DECLARATION: Yes  NO REQUEST FOR GOVERNOR’S DECLARATION: Yes  NO REQUEST COUNTY EOC BE ACTIVATED: Yes  NO REQUEST COUNTY EOC TO STANDBY: Yes  NO THE FOLLOWING RESOURCES ARE: NEEDED  Fire  Public Works  Medical/Health  Police  Bldg. Inspectors Mental Health  Dispatch  PIO  Other ______ AVAILABLE  Fire  Public Works  Medical/Health  Police  Bldg. Inspectors Mental Health  Dispatch  PIO  Other ______ FAX IMMEDIATELY TO OA EOC AT (714) 628-7154 Attachment B - 1995 Orange County Operational Area Agreement Page 58 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 23 O A Mutual Aid Plan – Addendum 3 OAMA RESOURCE NEEDS ASSESSMENT Please contact the next level of SEMS to determine possible personnel needs/availability. (Region to Operational Areas; Operational Area to local jurisdictions and special districts.) Emphasize to personnel contracted this does not place them on standby. THIS IS ONLY A QUERY. Note: This is only a suggested list of position availability. POSITIONS Please indicate below the number of personnel available (a#)_/or needed (n#) alongside of SEMS position. Additional availability or needs can be listed in the blank space. Local EOC Management __________________ Safety Officer ________________________ Liaison Officer _______________________ ____________________________________ OA EOC Management ___________________ Safety Officer _______________________ Liaison Officer ______________________ ___________________________________ Local EOC Operations ___________________ HazMat Branch Coordinator____________ Field Rep. __________________________ ___________________________________ OA EOC Operations ____________________ Field Rep. __________________________ ___________________________________ Local EOC Planning/Intelligence ___________ Situation Status & analysis Unit _________ Advance Planning Unit ________________ Demobilization Unit Coordinator ________ ___________________________________ OA EOC Planning/Intelligence _____________ Safety Officer ________________________ Liaison Officer _______________________ ____________________________________ Local EOC Finance/Administration _________ DSR Record-keeping Unit Coordinator____ ____________________________________ OA EOC Finance/Administration ___________ Time Unit ___________________________ Purchasing Unit ______________________ Compensation Unit ___________________ ____________________________________ Local EOC Logistics____________________ OAMA Coordinator __________________ ____________________________________ OA EOC Logistic _______________________ OAMA/EMMA Coordinator ___________ _____________________________________ Local EOC Public Information Officer _______ Rumor Control Unit __________________ Media Liaison _______________________ ___________________________________ OA EOC PIO __________________________ Rumor Control Unit __________________ Medial Liaison ______________________ ___________________________________ Local EOC Technical Advisor (Specialty) ____ Damage Assessment Unit Leader ________ Hazard Mitigation Assistant ____________ Recovery Process Unit Leader __________ Human Resource Unit Leader ___________ ________________________________ OA EOC Technical Advisor (Specialty) ____ __________________________________ __________________________________ ___________________________________ Attachment B - 1995 Orange County Operational Area Agreement Page 59 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 24 O A Mutual Aid Plan – Addendum 3 OAMA EXIT FORM ____________________________________________________ (Incident Name) To assist us with the evaluation of the effectiveness of this program, please take a few minutes to fill out the following information. This information will be used to improve the Operational Area Mutual Aid Program for future disasters. Name: ________________________________________ Title: _________________________________ Agency: _____________________________________________________________________________ Date Assignment began: _______________________ Release Date and Time: _____________________ Assigned position or function (if more than one please indicate): _________________________________ _____________________________________________________________________________________ Where your skills appropriate for your assignment? (if not indicate what skills/knowledge would be more effective) _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ What additional training or orientation would be helpful in performing this function? _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ What key topics should be covered in the After-Action Report? _____________________________________________________________________________________ _____________________________________________________________________________________ Please add any additional comments on the back of this form. Thank you for taking the time to complete this form. RETURN THIS FORM TO THE LOGISTICS SECTION Attachment B - 1995 Orange County Operational Area Agreement Page 60 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 25 O A Mutual Aid Plan – Addendum 3 OAMA EVALUATION FORM ________________________________________________ (Incident Name) To assist us with the evaluating the effectiveness of this program, please take a few minutes to fill out this questionnaire. The information provided here will be used to make improvements in the OAMA program for future response to disasters. Thank you for taking the time to complete this form. EMERGENCY MANAGEMENT OR RESPONSE PERSONNEL ASSIGNED TO YOUR FACILITY Name Title Agency What types of emergency management assistance provided to your operations did you find most helpful? What types of assistance did you find least helpful? What functions of your agency would most likely be in need of OAMA support? Indicate whether it would be in the response or recovery operations? How did you learn about the availability of OAMA assistance? How well did the skills/knowledge of the person assigned to you match your needs? What aspects of the mutual aid process worked well? What aspects of the mutual aid process did now work well and how would you improve this process? Which disaster response issues, functions, or roles do you believe the OAMA program should focus on for planning mutual aid response to future disasters? Additional comments (Please use the back of this sheet or a second page) Please mail or fax your response to the Operational Area Manager Attachment B - 1995 Orange County Operational Area Agreement Page 61 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 26 O A Mutual Aid Plan – Addendum 3 OAMA DISPATCH CHECKLIST NAME: ________________________________________ AGENCY ___________________________ BUSINESS ADDRESS: PHONE ( ) _________________________ FAX ( ) _________________________ PAGER/CELL PHONE ( ) ____________ CONTACT PERSON (for emergency purpose only) NAME _____________________________ Relationship _________________ PHONE ( ) ____________ ASSIGNMENT INFORMATION INSTRUCTIONS: The following information is to be completed by the requesting jurisdiction, faxed to the responder, and the Operational Area Logistics Section. The Operational Area will fax to the OES Region. Date/Time Assignment begins _____________________ Release Date (anticipated) ___________________ Assignment/Agency _________________________________ Position _____________________________ Location _____________________________________ Address __________________________________ Report to: ____________________________________________ Phone No. ( ) _____________________ (Person or Position) Operational Area Contact ________________________________ Phone No. ( ) _____________________ Travel Arrangements: (When this part is completed fax to responding OAMA personnel) To be made by ______ Responder ______ Requesting Jurisdiction Transportation by ______ Car _____ Plane ___ Other ___________________ Directions (should include map with location marked and written directions) Flight Schedule Lodging Information Facility _____________________________________________ Confirmation No. ____________________ Address _____________________________________________ Contact Person _____________________ ____________________________________________________ Phone No. ( ) _____________________ SPECIAL COMMENTS (see back side or second page) Attachment B - 1995 Orange County Operational Area Agreement Page 62 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 27 O A Mutual Aid Plan – Addendum 3 OAMA CHECK-IN AND CHECK-OUT FORM _______________________________________________ (Incident Name) NAME: _____________________________________ AGENCY ___________________________________ LODGING FACILITY ADDRESS: PHONE ( ) ______________________________ FAX ( ) _________________________________ PAGER/CELLPHONE ( ) __________________ Date duty began: _____________________________ Release date and time: _______________________ Assignment (position or function; list all with corresponding beginning and release times) _______________________________________________________________________________________ ___ Location: _______________________________________________________________________________________ ___ EQUIPMENT AND SPECIAL ITEMS CHECK OFF Items Date Issued Date Returned EQUIPMENT Identification Badge Cellular Phone Pager Computer Parking Pass Other Passes __________________________ __________________________ Credit Cards (s)/No. __________________________ __________________________ Car and Keys Vehicle No. ________________ Other Equipment __________________________ FORMS Orientation Packet Time Sheets Daily Activity Logs Expense Claim/Documentation EMMA Exit Survey Form Attachment B - 1995 Orange County Operational Area Agreement Page 63 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 28 O A Mutual Aid Plan – Addendum 3 OPERATIONAL AREA RESOURCES REQUEST TRACKING FORM 1. INCIDENT/DISASTER 2. OPERATIONAL AREA 3. FUNCTION 4. Local Ref #/ / OA # 5. Request Date/Time 6. Requesting Agency ------------------------- (Your Name) 7. Qty. 8. Resource Requested 9. Needed Date/Time 10. Deliver To: 11. Time Provider Contacted 12. Providing Agency 13. Description of Resource Provided 14. ETA Date/Time 15. Released Date/Time REMARKS Attachment B - 1995 Orange County Operational Area AgreementPage 64 of 66 Orange County Operational Mutual Aid Policy Part Three G:\users\OA\Agree\Mutual Aid Plan 29 O A Mutual Aid Plan – Addendum 3 RESOURCES REQUEST FORM OASIS Form #160 Request Taken By:__________________________ Emergency Function:______________________ 1. Date/Time 2. Local Ref. No.: 2.1 OA No.: Region No.: 3. Requestor Information: Name: ______________________________________________________________________________ Agency: _____________________________ Emergency Function: ____________________________ Telephone #: ____________________________________________________________________________ Day Night Pager, Fax, Other 4. Resources Requested: (Number & Type) 5. Reason Resources Requested (What’s the Mission?) 6. Importance (circle one): Life Saving Life Sustaining Property Threatened Routine 7. Date/Time Needed: 7.1 Duration Needed: 8. Location resources Needed: 9. Name: ______________________________________ Agency: _____________________________________ Telephone #: 8.1 Deliver to: (If Different from #8) ______________________________________________ Day Night Pager, Fax, Other TO BE COMPLETED BY MUTUAL AID/RESOURCES COORDINATOR HANDLING REQUEST 10. Your Name 10.1 Date/Time 11. OA No.: 12. Notify Region: Date: Time: 13. Agency Providing Resources 13.1 Contact Name/ Telephone #: 13.2 Resources Provided 13.3 ETA Date/Time Attachment B - 1995 Orange County Operational Area Agreement Page 65 of 66 OPERATIONAL AREA AGREEMENT OF THE COUNTY OF ORANGE AND POLITICAL SUBDIVISIONS DATED: ____________ _________________________________ (City or Jurisdiction) BY ______________________________ _________________________________ _________________________________ ATTEST: By: _____________________________ _____________________________ _____________________________ Date ____________________________ NOTICE TO _________________ TO BE GIVEN TO: City/Jurisdiction ________________________________________ Name ________________________________________ City/Jurisdiction ________________________________________ Address ________________________________________ City/State/Zip ________________________________________ FAX Number APPROVED AS TO FORM: _______________________________________ _______________________________________ _______________________________________ Dated __________________________________ Attachment B - 1995 Orange County Operational Area Agreement Page 66 of 66 19 CCR § 2409 § 2409. Operational Area Level. (a) “Operational Area Level” means an intermediate level of the state emergency services organization, consisting of a county and all political subdivisions within the county area. Each county geographic area is designated as an operational area. An operational area is used by the county and the political subdivisions comprising the operational area for the coordination of emergency activities and to serve as a link in the system of communications and coordination between the state's emergency operation centers and the operation centers of the political subdivisions comprising the operational area, as defined in Government Code s8559(b) & s8605. This definition does not change the definition of operational area as used in the existing fire and rescue mutual aid system. (b) All local governments within the county geographic area shall be organized into a single operational area by December 1, 1995, and the county board of supervisors shall be responsible for its establishment. (c) The operational area authority and responsibility under SEMS shall not be affected by non-participation of any local government(s) within the operational area. (d) The county government shall serve as the lead agency of the operational area unless another member agency of the operational area assumes that responsibility by written agreement with county government. (e) The lead agency of the operational area shall: (1) Coordinate information, resources and priorities among the local governments within the operational area. (2) Coordinate information, resources and priorities between the regional level and the local government level. Coordination of fire and law enforcement resources shall be accomplished through their respective mutual aid systems. (3) Use multi-agency or inter-agency coordination to facilitate decisions for overall operational area level emergency response activities. (f) The operational area EOC shall be activated and SEMS used as described in the SEMS Organizational Levels and Functions (s2403) when any of the followin g conditions exists: (1) A local government within the operational area has activated its EOC and requested activation of the operational area EOC to support their emergency operations. Attachment C - California Code of Regulations Section 2409 Page 1 of 2 (2) Two or more cities within the operational area have declared or proclaimed a local emergency. (3) The county and one or more cities have declared or proclaimed a local emergency. (4) A city, city and county, or county has requested a governor's proclamation of a state of emergency, as defined in Government Code s8558(b). (5) A state of emergency is proclaimed by the governor for the county or two or more cities within the operational area. (6) The operational area is requesting resources from outside its boundaries, except those resources used in normal day-to-day operations which are obtained through existing agreements providing for the exchange or furnishing of certain types of facilities and services on a reimbursable, exchange, or other basis as provided for under the Master Mutual Aid Agreement. (7) The operational area has received resource requests from outside its boundaries, except those resources used in normal day-to-day operations which are obtained through existing agreements providing for the exchange or furnishing of certain types of facilities and services on a reimbursable, exchange, or other basis as provided for under the Master Mutual Aid Agreement. Note: Authority cited: Section 8607(a), Government Code. Reference: Sections 8607(a), 8558(c), 8559(b), 8605, 8561, 8616, 8617, 8618, Government Code. HISTORY 1. New section filed 8-3-94; operative 9-2-94 (Register 94, No. 31). Attachment C - California Code of Regulations Section 2409 Page 2 of 2 OPERATIONAL AREA AGREEMENT OF THE COUNTY OF ORANGE AND POLITICAL SUBDIVISIONS DATED: ____________ _________________________________ (City or Jurisdiction) BY ______________________________ _________________________________ _________________________________ ATTEST: By: _____________________________ _____________________________ _____________________________ Date ____________________________ NOTICE TO _________________ TO BE GIVEN TO: City/Jurisdiction ________________________________________ Name ________________________________________ City/Jurisdiction ________________________________________ Address ________________________________________ City/State/Zip ________________________________________ FAX Number APPROVED AS TO FORM: _______________________________________ _______________________________________ _______________________________________ Dated __________________________________ Agenda Item K AGENDA STAFF REPORT DATE:July 27,2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Steve Myrter, P.E., Director of Public Works SUBJECT:Approving Amendment No. 2 to the Professional Services Agreement with AndersonPenna Partners, Inc. for Ocean Place Development Construction Management and Inspection Services ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7056: 1. Approving Amendment No. 2 to the Professional Services Agreement dated November 13, 2018, as previously amended by Amendment No. 1 dated January 27, 2020, between the City of Seal Beach and AndersonPenna Partners, Inc. to increase consultant’s compensation by $59,800 for a revised total contract amount not-to-exceed $445,439 for the continuation of construction management and inspection services for the Ocean Place Development Project; and, 2. Authorizing the City Manager to Execute Amendment No. 2. BACKGROUND AND ANALYSIS: A Subdivision Improvement Agreement with Shea Homes for the Ocean Place Development (Tract 17425) was approved by the City Council on November 13, 2018. With approval of this Agreement Shea Homes commenced construction of the Ocean Place Development in January of 2019. Construction of the Ocean Place Development required extensive grading operations and construction of approximately $4.1 million of public infrastructure that will ultimately be owned and maintained in perpetuity by the City. These public facilities included a Park, streets/alleys, public water lines, sewer lines, storm drainage system including storm water quality facilities, and street frontage improvements to the sidewalks. Staff determined that professional construction management and inspection services would be required to ensure all public infrastructure, as described 8 1 3 above, was constructed in accordance with the City standard specifications. Accordingly, staff requested a proposal from AndersonPenna Partners, Inc. to provide construction management and inspection services as well as to continue Ocean Place Development plan checking services. As of January 2020 Shea Homes had anticipated that all the Development’s public infrastructure would be completed and turned over to the City by the late spring of 2020. However, due to a continuation of unforeseen conditions including the onset of the global pandemic, the public infrastructure is now anticipated to be completed by end of summer 2020. The initial Professional Services Agreement (Agreement) with AndersonPenna Partners, Inc. was executed in November 2018 with not-to-exceed fee of $350,000. Amendment No. 1 to this Agreement was executed in January 2020 increasing the total not to exceed amount to $385,639, which is currently close to being fully expended. In an effort to ensure continuation of construction management and inspection services through completion of the public infrastructure construction, staff requested AndersonPenna Partners, Inc. to submit a letter proposal. Based on Shea’s current construction schedule, AndersonPenna Partners, Inc. is requesting an additional fee of $59,800 for a total Agreement not-to-exceed amount of $445,439 to continue their professional construction management services through the summer of 2020. ENVIRONMENTAL IMPACT: This item is not subject to the California Environmental Quality Act pursuant to Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that the approval of the amendment to the professional services agreement with AndersonPenna Partners, Inc. will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: The approval of the proposed Amendment No. 2 does not directly expend City funds. Services performed by AndersonPenna Partners Inc., under this Agreement will be fully reimbursable by the Ocean Place Developer, Shea Homes. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. 8 1 3 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 7056: 1. Approving Amendment No. 2 to the Professional Services Agreement dated November 13, 2018, as previously amended by Amendment No. 1 dated January 27, 2020, between the City of Seal Beach and AndersonPenna Partners, Inc. to increase consultant’s compensation by $59,800 for a revised total contract amount not-to-exceed $445,439 for the continuation of construction management and inspection services for the Ocean Place Development Project; and, 2. Authorizing the City Manager to execute Amendment No. 2. SUBMITTED BY: NOTED AND APPROVED: Steve Myrter Jill R. Ingram Steve Myrter, P.E. , Director of Public Works Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7056 B. Executed AndersonPenna Partners Inc., Professional Services Agreement C. Executed Amendment No. 1 to AndersonPenna Partners Inc., Professional Services Agreement D. Amendment No. 2 to AndersonPenna Partners Inc., Professional Services Agreement RESOLUTION 7056 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2. TO THE PROFESSIONAL SERVICES AGREEMENT WITH ANDERSONPENNA PARTNERS, INC. FOR THE OCEAN PLACE DEVELOPMENT (TRACT 17425) CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES WHEREAS, The City Council approved a Subdivision Improvement Agreement with Shea Homes for the Ocean Place Development (Tract 17425) at the November 13, 2018 City Council Meeting; and WHEREAS, Construction of the Ocean Place Development required extensive grading operations and construction of approximately $4.1 million of public infrastructure that will ultimately be owned and maintained in perpetuity by the City; and WHEREAS, these public facilities included a park, streets/alleys, public water lines, sewer lines, storm drainage system including storm water quality facilities, and street frontage improvements to the sidewalks; and WHEREAS, on November 13, 2018, City Council approved a Professional Services Agreement (Agreement) with AndersonPenna Partners, Inc. in the amount of $350,000 to provide construction management and inspection services for the public infrastructure portion of the Ocean Place Development Project; and WHEREAS, on January 27, 2020, City Council approved Amendment No. 1 (“Amendment No. 1”) to the Agreement between the City of Seal Beach and AndersonPenna Partners, Inc., to increase consultant’s compensation by $35,639 for a revised total contract amount not to exceed $385,639 to ensure the continuation of providing construction management and inspection services for the public infrastructure portion of the Ocean Place Development Project; NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves Amendment No. 2 dated July 27, 2020 to the Agreement dated November 13, 2018 between the City of Seal Beach and AndersonPenna Partners, Inc., as previously amended by Amendment No. 1, dated January 27, 2020, to increase consultant’s compensation by $59,800 for a revised total contract amount not to exceed $445,439 attached hereto as Exhibit “A” and incorporated herein by this reference 5 2 5 5 as though set forth in full. SECTION 2. The City Council hereby authorizes the City Manager to execute Amendment No. 2. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July, 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 7056 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk PROFESSIONAL SERVICES AGREEMENT For OCEAN PLACE (TRACT 17425) CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 H. AndersonPenna Partners, Inc. 3737 Birch St., STE 250 Newport Beach, CA 92660 949) 4Z8 -1500 - Phone 949) 258 -5053 - Fax This Professional Service Agreement ( "the Agreement') is made as of I 10, li (the Effective Date "), by and between AndersonPenna Partners, Inc. ( "Consultant'), a Corporation, and the City of Seal Beach ( "City "), a California charter city, (collectively, the Parties "). RECITALS A. City desires certain professional services for construction management and inspection, in the manner set forth herein and more particularly described in Section 1. B. Consultant represents that it is qualified and able, by virtue of experience, training, education, and expertise, to provide City with the services required by this Agreement in a good and professional manner, and it desires to provide such services as provided herein. The City enters into this Agreement in reliance on those representations. C. City desires to retain Consultant and Consultant desires to serve City to perform those services in accordance with the terms and conditions of this Agreement. 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, (Consultant's scope of services), which are hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and /or Exhibit B, 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 2 of 15 by the City shall not operate as a release of Consultant from such standard of care and workmanship. 1.5. By executing this Agreement, Consultant represents that, to the extent required by the standard of practice, Consultant (a) has investigated and considered the scope of Services to be performed, (b) has carefully considered how the Services should be performed, and (c) understands the facilities, difficulties and restrictions attending performance of the Services under this Agreement. 1.6. 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 This term of this Agreement shall commence as of the Effective Date and shall continue for a term of 24 Months 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, attached hereto and incorporated herein by reference, for Services but in no event will the City pay more than $350,000. Any additional work authorized by the City pursuant to Section 1.6 will be compensated in accordance with the fee schedule set forth in Exhibit B. 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 all undisputed fees within 30 days of receiving Consultant's invoice. City will not withhold any applicable federal or state payroll taxes and other required taxes, or other authorized deductions from payments made to Consultant for services performed under this Agreement. 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 3of15 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. 5.3. Notice of termination shall be given in accordance with Section 7.0. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. Teresa Kelley is the Consultant's primary representative for purposes of this Agreement. Consultant may not change its representative without 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: AndersonPenna Partners, Inc. 3737 Birch St., STE 250 Newport Beach, CA 92660 Attn: Dino D'Emilia, Vice President 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 4 of 15 8.0 Personnel Consultant has or shall secure, at its own expense, all personnel required to perform all services under this Agreement. Any person who performs any of the services shall possess the qualifications, permits, and licenses required by state and local law to perform such services. 9.0 Independent Contractor 9.1. Consultant is and shall at all times remain 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 times 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. 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. 9.2. To the fullest extent permitted by law, Consultant shall defend (with legal counsel acceptable to the City, whose consent shall not be unreasonably withheld), 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. Consultant's defense and indemnification obligations under this Section are in addition to the Consultant's defense and indemnification obligations of Section 14.0. 10.0 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. 5of15 11.0 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. 12.0 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 12.0 shall survive for three (3) years after expiration, termination or final payment under this Agreement, whichever occurs later. 13.0 Insurance 13.1. 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. 13.2. 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: 6 of 15 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) Employer's Liability and Workers' Compensation Insurance; and, if required by the City, (4) 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; (3) Employer's Liability: $1,000,000 per accident and in the aggregate for bodily injury or disease and Workers' Compensation in the amount required by law; and (4) Professional Liability: 1,000,000 per claim /aggregate. 13.3. 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, 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. 13.4. 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. 13.5. 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 7of15 volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 14.0 Indemnification, Hold Harmless, and Duty to Defend Consultant and the City agree that the City, its employees, agents and officials 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 the Indemnitees. Consultant acknowledges that the CITY would not have entered into this Agreement in the absence of the commitment of the Consultant to indemnify and protect the City and the Indemnitees, as set forth in this Agreement. 14.1 Indemnity for Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, defend, hold harmless and indemnify 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 14.0), 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, attorneys and other professionals, and all costs associated therewith collectively "Claims "), whether actual, alleged or threatened, to the extent arising out of, pertaining to, or relating 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 for that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Claims 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. 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.] 14.2 Other Indemnities. Other than in the performance of 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 8 of 15 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. 14.3 Subcontractor Indemnification. Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 14.0 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 14.4 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 14.0 shall not be limited by the limits of any policies of insurance required or provided by Consultant pursuant to this Agreement. 14.4 Consultant's covenants under this Section 14.0 shall survive the expiration or termination of this Agreement. 15.0 Equal Opportunity 9of15 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. 16.0 Workers' Compensation 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. 17.0 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 C, attached hereto and incorporated by reference herein. 18.0 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. 19.0 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. 20.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 21.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 10 of 15 22.0 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. 23.0 Prohibited Interests; Conflict of Interest 23.1. 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. 23.2. 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. 23.3. 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. 24.0 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 11 of 15 losing party all of its attorneys' fees and other costs incurred in connection therewith. 25.0 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. 26.0 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 Attest: Approved as to Form: By: Craig A. Steele, City Attorney CONSULTANT PEA-WA I ea J0 r- Name' r%741 Its: CAII , > LetxgAx- 12 of 15 Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 Exhibit A - Scope of Services Plan Checking Management Approach Management of Project Team. Our project approach and proven work plan is based on a pro -active project management approach. We firmly believe in "doing it right the first time Consequently, we realize that when pursuing project success, it is critical to thoroughly define the project requirements before the work is started. APP's proposed Plan Manager, Terry Kelley, PE, has more than 30 years of management experience and has a proven record in successfully managing projects for numerous public agencies. She has great success in obtaining consensus on implementing an agency's and our managerial procedures and approaches. Our management philosophy includes the following: Understand the Proposed Project. Terry Kelley, PE has been intimately involved with the project for the last 2 years. She has been the lead reviewer on the project documents and plans. She is committed to be available to the City during the construction duration of all the City critical improvements. She has a wealth of knowledge that she will be sharing with the APPteam. The Right People for the Project. Along with Terry Kelley, PE we enclose resumes for Senior Public Works Inspectors Eric Egurrola and Anthony Guzman, QSP, to be the City's representative in the field for inspection. As noted in the cover letter, availability of either inspector is dependent upon the City's NTP to APP to begin work on the project. Alternate inspection candidates will be proposed and deployed to the project, as approved by the City, should Eric or Anthony be committed on other assignments prior to the City's NTP. Team Communication. Our team members have excellent track records communicating with clients and stakeholders. Frequent communication and tracking of project progress is integral to our approach for his project. We will set up communication protocol with the City prior to commencing any work on the project. Our goal is to keep the City informed as construction progress. Through our FTP site that we have already established for the project, we will have daily inspection reports uploaded forthe City's review. The City will be included in all construction revision communications and our recommendations will be coordinated with the City. Terry will be responsible for outlining construction communication protocol. Schedule. The development construction schedule will be the responsibility of the developer. The developer must submit a construction schedule to the City for review and approval. APP can work with the developer to develop a realistic construction schedule that will meet the City's goals and standards. Construction Plan Checking Task Approach Construction Plan Revision Reviews. Construction plan reviews are completed for revisions to the City- approved plans. These revisions are the result of field requested changes to the plans. The revisions must be coordinated by APP's project manager, APP's inspector, the engineer of record and the City. All revisions will be reviewed with the City. APP will present our recommendations for approval and confirm that the approved recommendations are then implemented. Protocol will be established with the City, the developer and its representatives. APP'S project manager and plan check reviewer, Terry Kelley, has experience with and understands the requirement to resolve requested revisions during construction in a very timely manner. Terry currently is the lead construction revision reviewer for almost 200 acres of development including the civil portions of the City of Lake forests S60- million Civic Center campus. Scheduling and Fee Control. APP has estimated that the entire project will take approximately nine months. This estimate does not include any unforeseen issues or delays in the field on the part of the developer's construction forces. Terry has been successful in coordinating and completing timely construction reviews. She has a track record of obtaining consensus 11 P a g e ANDEP,SON•PENNA Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 between all parties involved in plan revisions. Following the construction communication protocol established for the project, Terry will outline items of submittal required for revision requests which will aid in facilitating timely reviews. APP has provided an estimate of fees for the project construction management and plan- checking revisions based on the estimated project duration noted above. Meetings. Terry will attend construction meetings as necessary to review the project site progress and discuss proposed revisions. She will also attend periodic site walks with Dana Hutchins, APP's senior public works inspector, to review progress. She will be available to review any construction issues with Dana and the City. Electronic Submittals. APP will maintain its FTP site established for the Ocean Place project to coordinate all construction plan checking of revisions. We have successfully used the FTP site to receive project submittals from the Fuscoe and return to them our comments. The City has access to the FTP site and can upload and download files. Files created and saved in Bluebeam Revu®, which APP utilizes to provide clear, electronic plan check comments, can be opened by anyone with Adobe Acrobat* software. Having access to construction revision submittals electronically helps expedite reviews and perform quality control checking. Construction Inspection Approach APP will serve as the Citys representative and liaison with the City, as well as, the contractor during construction of the Ocean Place project. Prior to the pre - construction meeting, APP will review and be knowledgeable about the contract documents and the existing site and conditions. Preconstruction Conference. APP inspector will participate in the pre - construction meeting organized by the contractor and developer. Safe Conditions. APP will monitor project work and adjacent areas for unsafe conditions, promptly require corrective measures be addressed by the contractor in compliance with the Contractor's submitted safety plan, OSHA requirements, City's standards and contract documents and report such unsafe conditions, and corrective measures taken, to the City. One of the most pervasive job hazards across all projects is construction adjacent to live traffic lanes. APP inspectors are very familiar with monitoring and enforcing proper traffic controls per the WATCH Handbook, MUTCD and /or project- specific traffic control, traffic handling, detour plans. Inspectors drive and /or walk the project limits at the start, during and before leaving the site each day to monitor proper, and /or require corrections to the required traffic control measures. Quality Assurance. APP will enforce that a quality product, in conformance with the City's standards and approved project documents, will be constructed. APP will perform and /or coordinate OA /OC activities daily and review activities as they happen, to make sure that OA /OC procedures are followed and deficiencies are resolved in a timely and efficient manner. APP's inspector will be on site during the normal working hours and when critical activities require verifying construction progress and that all work conforms to approved project documents. The inspector will monitor testing services, track documentation and review testing results. The inspector will also review test reports submitted by others to substantiate compliance and ensure that certificates of compliance or source release tags are furnished by the contractor, along with the applicable delivered materials at the project site. When necessary, corrective measures will be implemented and re- inspected /retested to verify acceptable completion. APP'S inspector will reject work that does not conform to the requirements of the contract documents and will promptly report unacceptable work to the City and contractor. Rejected work will be thoroughly documented, photographed and tracked until repaired or replaced to the satisfaction of the City. 21P a g e I ANDERSON PENNA Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 11425 _ Materials and Workmanship. APP inspectors will recommend approval of materials and workmanship that meet the project- approved document. This will be done in coordination with the APP's project manager, the engineer of record, architect, fire inspector, deputy inspector, or other authorized representative or regulatory authorities having jurisdiction. Daily Construction Observation Reports. APP's inspector will compile daily observation reports documenting construction activities, field problems, disputes or claims, resolutions of issues and directions given to the contractor. Completed daily reports will be uploaded to the APP FTP site weekly. Photographs. Inspectors prepare and maintain an electronic photo journal documenting the construction progress. Photos will be taken before construction begins, during construction and upon completion of the project and uploaded to the FTP site on a weekly basis. Submittal Processing. APP's inspector will assist with review of contractor submittals, as requested by the City, for completeness and general conformance with the approved project documents. The inspector will compare approved submittals with materials delivered to the project to confirm the proper products are incorporated into the constructed product. Revisions. APP's inspector will review and coordinate with Project Manager Terry Kelley on all requested revisions to the approved project documents. Our inspectors will work closely with our project manager to ensure that the approved project documents are adhered to throughout construction of the project Problems and Solutions. APP's proactive approach serves to anticipate and expeditiously resolve field problems. Our team is well - trained in problem solving. Al I issues are processed with a sense of urgency by APP's project manager, and presented to the City with suggested alternatives, potential budget and schedule impacts and recommended solutions. The inspection team will quickly coordinate resolutions of field problems, in the manner which suits the best interests of the project and the City. APP will effectively and expeditiously communicate with Project Manager Terry Kelley to identify conflicts construction problems, coordination issues and facilitate the needed action and response to requested revisions. Document Tracking System. Complete and current project files shall be available in the field and on the FTP site. The APP project controls system uses a detailed indexing system for all project hard files. APP has already developed customized forms, reports database structure, and work breakdown structure, well suited for typical public works projects. This system will be adapted to the specific needs of the project, to monitor, track and control the project. This detailed tracking system will enable us to provide an accurate assessment of the progress to the City with recommendations to maintain or improve adherence to the approved project schedule. Schedule Review. The development construction schedule will be the responsibility of the developer. The developer must submit a construction schedule to the City for review and approval. APP can work with the developer to develop a realistic construction schedule that will meet the City's goals and standards. APP inspectors are very familiar with mainstream scheduling software such as Primavera P6 and Microsoft Project. The APP inspectorwill assist the City in reviewing the baseline construction schedule, including activity sequences and duration, schedule of submittals and schedule of delivery for products with long lead times. The inspection team will evaluate the baseline project schedule for the following: Consistency with the contract schedule ( (ompletion within the contract time) Accurate start dates, completion dates, other dates detailed in the contract Any impacts of weather and change orders Sufficient detail — including submittal process and procurement requirements Sequence of construction and correct schedule logic Identification of the critical path and project float Page \ AND /EP,SOON PENNA Professional Construction Phase Plan Cheddng and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 The schedule will not be recommended for approval as the baseline until all discrepancies are resolved. Schedule Control. During the progress of construction, the APP team will compare the contractor's monthly schedule updates to the baseline schedule and any approved time extensions, note any shortcomings and monitor and track corrections by the Contractor to keep the Project Schedule on track. A four -week look ahead will be obtained from the contractor, updated weekly and presented at the weekly construction progress meetings. This tool will keep the entire team looking one -month ahead of the project and will facilitate proactive handling of project activities and issues. Construction Meetings. The inspector will be available to attend developer construction meetings. At these meetings our inspector will provide comments on observed project construction issues. The inspector will also request corrective measures concerning construction activities and will provide a timeline for expected corrections. Written Instruction. APP will Issue written instructions to contractor regarding routine matters and/or follow-up of verbal instructions as necessary to properly document project issues. Plans, Specs and As- Builts. APP inspectors periodically review the Contractor's as -built updates on the approved job plan set, identify missing items and require the Contractor to keep as -built records up to date throughout the project. APP inspectors keep their own set of as -built plans which will note the location of subsurface utilities encountered and / or installed, identify where any design or field revisions were required. At the end of the project the final as -built plans are submitted the City. Delivery Close -out Documents. APP's inspector will enforce the developer's contractor to submit well - coordinated operations and maintenance manuals, warrantees & guarantees, bonds, extra stock and /or other items required by the City. Pre -Final Inspection. The Inspector will coordinate with APP's project manager, appropriate project stakeholders, perform the final job walk and prepare the punchlist (deficiency list), The inspector will coordinate and observe completion of required corrections. Final Inspection. Satisfactory completion of all pun chlist items is verified before the inspector signs the permit. APP is noted for our attention to detail. Not only have we excelled at closing out our own projects, but we have been requested to and successfully closed out problem client projects where our services were not initially utilized. Upon completion of the punchlist and final acceptance by all project stakeholders, APP'S inspector and project manager will make recommendation to City for release of bonds. Project Schedule APP estimates that it will take approximately nine months to complete this project. This estimate assumes that the project's on -site and off -site improvements will be constructed concurrently and there are no unforeseen construction issues. However, the City is aware that the project is situated on the former site of an abandoned steam - generating plant and is within Coastal Commission jurisdiction. These two factors may introduce construction issues that prolong the construction schedule. aqe ANDERSON • PENNA Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 Exhibit B - Estimated Fee The following fee is based upon Exhibit A. It should be noted that the final cost is dependent upon the developer's timely execution of the project. The estimated fee is a time and materials estimate based upon the developers proposed schedule. The estimate is also based upon full time management for the duration of the developers schedule. APP understands that the development will provide public infrastructure that will become a permanent City maintenance responsibility, therefore, it is critical that full time inspection of those elements be provided. The final cost of these services will be dependent on the actual time required by the developer. Notes: The above hourly rates include wages, fringe and general and administrative overhead and fee, as well as typical supplies, tools and equipment required to perform services. The following minimum callout applies to Inspection staff, in accordance with Industrial Welfare Commission Order No. 16 -2001: Cancellation of 8 hours scheduled inspection after inspector's arrival on site: 4 -hour minimum Cancellation of 4 hours scheduled inspection after inspector's arrival on site: 2 -hour minimum This is a Prevailing Wage Project. Prevailing Wage Rates are subject to increases pursuant to the State of California's Department of Industrial Relations Wage Rate Determinations, assumed at $2.30 per hour, plus associated overhead and profit, per annum. The rate included above cover the period through June 30, 2019. Inspection Overtime: No weekday, Saturday, holiday or Sunday work is assumed or included. Should any weekday or Saturday overtime inspection be required, it is charged at 1.4 times the rate shown. For Sundays and holidays inspection billing, rates are 1.80 times the above rate, upon the City's prior written approval therefore. Contracts for Public Works Inspection: For contracts involving public works inspection services, APP requires the awarding public agency to complete DI R form PWC -100 solely for Andersonlrenna Partners, Inc. as the Prime Contractor specific to the awarded contract name and amount. Fees for subconsultant services: Billed at actual cost plus 15 percent (15%) to cover overhead and administration. Reimbursable Expenses: Ordinary identifiable non -salary costs that are directly attributable to the project, such as reproduction, regular vehicular travel costs, overnight postage / couriers, etc., are included in the fee estimated above. Extraordinary expenses, such as oversized and /or color reproduction costs, site facility hard phone line and /or intemet service llPage a ANDERSON-PENNA Estimated Fee city of Seal Beach Plan Checking and Construction Inspection services Ocean Place Development -Tract 17425 40 Waking Weeks Construction Period 40 Working Weeks Est nano eer Extended TOLE Toul Noss Hourly WoeWed Fee emiMAlamger 6.00 240.00 5 185.00 5 _ 44,400.00 Sr. Plan Check Enginmr- Construction elan Revision Redewi 8JI0 32D.0 185.0 5 59120.00 Pubic Works Inspector- PmmRlog Wave coo 1,600JID 5 142.0 227,200.0 Doammncoards 4.0 160JD s 120.0 5 19,200.0 II II Total Estimated Fee 350,000.00 Notes: The above hourly rates include wages, fringe and general and administrative overhead and fee, as well as typical supplies, tools and equipment required to perform services. The following minimum callout applies to Inspection staff, in accordance with Industrial Welfare Commission Order No. 16 -2001: Cancellation of 8 hours scheduled inspection after inspector's arrival on site: 4 -hour minimum Cancellation of 4 hours scheduled inspection after inspector's arrival on site: 2 -hour minimum This is a Prevailing Wage Project. Prevailing Wage Rates are subject to increases pursuant to the State of California's Department of Industrial Relations Wage Rate Determinations, assumed at $2.30 per hour, plus associated overhead and profit, per annum. The rate included above cover the period through June 30, 2019. Inspection Overtime: No weekday, Saturday, holiday or Sunday work is assumed or included. Should any weekday or Saturday overtime inspection be required, it is charged at 1.4 times the rate shown. For Sundays and holidays inspection billing, rates are 1.80 times the above rate, upon the City's prior written approval therefore. Contracts for Public Works Inspection: For contracts involving public works inspection services, APP requires the awarding public agency to complete DI R form PWC -100 solely for Andersonlrenna Partners, Inc. as the Prime Contractor specific to the awarded contract name and amount. Fees for subconsultant services: Billed at actual cost plus 15 percent (15%) to cover overhead and administration. Reimbursable Expenses: Ordinary identifiable non -salary costs that are directly attributable to the project, such as reproduction, regular vehicular travel costs, overnight postage / couriers, etc., are included in the fee estimated above. Extraordinary expenses, such as oversized and /or color reproduction costs, site facility hard phone line and /or intemet service llPage a ANDERSON-PENNA Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 charges, non - commuter project miles and /or other travel expenses to remote (over 50 miles one -way) fabrication yards / batch plants, overnight postage/ couriers, etc., are billed at actual cost plus 10 percent to cover overhead and administration. Travel charges to a casting/ fabrication yard or batch plant will include the hourly billing rate plus travel expenses as listed in the Caltrans Travel Guide (State rates). Extraordinary charges will not be billed to the Client unless specifically requested and approved by the Client in writing prior to incurring the expense. Fees for expert witness services: Charged at $300.00 per hour with a 4 -hour minimum per day. Payment Terms: A late payment finance charge at a rate of 12 percent per annum will be applied to any unpaid balance commencing 30 days after the date of original invoice. This rate schedule is effective through June, 2019. Should the Contract duration be extended beyond June 30, 2019, rates may be subject to annual and /or periodic revisions as necessary to accommodate inflationary trends, salary adjustments and the general costs of business, as mutually agreeable to the parties and approved via Contract amendment prior to implementing higher rates. NOTES/ LIMITATIONS: The projected fee is based on the number of estimated working days required for the completion of the work. The estimate may be affected by: Working time duration in excess of the duration indicated above Contractor and subcontractor's efficiency and sequencing of events Unexpected subsurface conditions Unforeseen delays beyond APP's control EXCLUSIONS TO SCOPE AND FEE: The following items are specifically excluded: Legal advice Design engineering Temporary field office facilities, equipment furniture, utilities and /or services Hazardous materials monitoring and /ortesting Acceptance and /or Independent Assurance Sampling and Testing (IAST) Services Specialized Software (otherthan MS Office Suite) and MS Project 31 P a g e ANDERSON PENNA EXHIBIT C 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 13 of 15 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 Administrative Code 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: 1 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 14 of 15 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. 15 of 15 KINGENG -01 NGONZALEZ ACORO' t CERTIFICATE OF LIABILITY INSURANCE GATE (MMIDD/YYYY) 10109/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACTNAME: PHONE FAXINC, Me, E.g: (703) 827 -2277 lac_NO):(703) 827.2279Ames & Gough 8300 Greensboro Drive Suite 980 nlonlESS: admin @amesgough.com McLean, VA 22102 INSURER(S)AFFORDING COVERAGE NAICk INSURERA:Continental Casualty Company AXV 20443 EACH OCCURRENCE INSURED INSURER a: National Fire Insurance Company of Hartford A(XV) 120478 INSURER C:Continental Insurance Company A(XV) 35289 _ Anderson Penna Partners, Inc. INSURER D 01/01/2019 3737 Birch Street, Suite 250 Newport Beach, CA 92660 INSURER E 1 Qp0,pOp5 INSURER F; IS 15'000 COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECTTO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECTTOALLTHE TERMS, EXCLUSIONSAND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSRAJP- TYPE OF INSURANCE ADDS SUBRMe POLICY NUMBER POLICY EFF POLICY E %P LIMITS A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE 5 1,()00,000 CI-MADE IX OCCUR 605690300$ 01/01/2018 01/01/2019 DAMAGES -(E.. n PAMAGE T(ER_oNTED nce)_ 1 Qp0,pOp5 IS 15'000 MED EXP(Anyone person)_ PERSONAL B ADM INJURY 1'000'000 AGGREGATE LIMIT APPLIES PER POLICY F JECT LOC GENERAL AGGREGATE 8 2,000,000 GGEEN'L L PRODUCTS- COMPIOPAGG 2'000'000 Ir OTHER: B AUTOMOBILE LIABILITY CO M LINED SINGLE LIMIT Ea acciderr 1,000,0Q0S X SANYAUTO605690299901/0112018 0110112019 BODILY INJURY Per eprson)_ OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accitlent) 7.' PERTY AMAGEracci1 I$ HIRED NON -ppyWyryN ED AUTOS ONLY AUTOSONLY C X UMBRELI-ALIAS X OCCUR I EACH OCCURRENCE 10'000'000 AGGREGATE 10'000'000EXCESSL1AaCLAIMS -MADE CUE 6056903022 0110112018 01/01/2019 DED X RETENTION$ 10,000 C WORKERS COMPENSATION ANDEMPLOYERS'UARILITY YIN ANY PROPRIETORIPARTNERIEXECUTIVE OFFICERNEMBER EXCLUOED? N M atandory In NH) I(yes describe under NIA WC 656903019 0110112018 01/01/2019 PER OTH- STATUTE ER_ 1,0 ()6,668E.L. EACH ACCIDENT EL DISEASE - EA EMPLOYEE 8 1'000'000 11000,006 DE SCRIPTIONOFOPERATIONSbel. E.L. DISEASE - POLICY LIMIT A Professional IAEH591916165 01/01/2018 01/01/2019 Per Claim 2,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, AddlHonaI Remarks Schad ule, may be attac had If more space Is required) Professional Liability Aggregate Limit: $4,000,000 Re: All Operations. The City of Seal Beach, its officers, officials, employees, designated volunteers and agents serving as independent contractors in the role of City officials are included as additional insured with respect to General Liability and Auto Liability when required by written contract. General Liability is primary and non - contributory over any existing Insurance and limited to liability arising out of the operations of the named insured and when required by written contract. Workers Compensation policy includes a waiver of subrogation in favor of the additional insureds where permissible by state law and when required by written contract CERTIFICATF HDI DER CANCELLATION ACORD 25 (2016/03) © 1988 -2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE CI of Seal BeachCity THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 211 8th Street Seal Beach, CA 90740 AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988 -2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Workers Compensation And Employers Liability Insurance Policy Endorsement We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. This agreement shall not operate directly or indirectly to benefit anyone not named in the Schedule. Schedule Any Person or Organization on whose behalf you are required to obtain this waiver of our right to recover from under a written contract or agreement. The premium charge for the endorsement is reflected in the Schedule of Operations. All other terms and conditions of the policy remain unchanged. This endorsement, which forms a part of and is for attachment to the policy issued by the designated Insurers, takes effect on the Policy Effective Date of said policy at the hour stated in said policy, unless another effective date (the Endorsement Effective Date) is shown below, and expires concurrently with said policy unless another expiration date is shown below. Form No: WC 00 03 13 (04 -1984) Policy No WC 6 56903019 Endorsement Effective Date: Endorsement Expiration Date: Policy Effective Date: 01 /0 11201 8 Endorsement No: 4; Page: i of 1 Policy Page: 62 of 98 Underwriting Company: The Continental Insurance Company, 333 S Wabash Ave, Chicago, IL 60604 Copyright 1983 National Council on Compensation Insurance. Policy: 6056902999 CNA SCA 23 500D09 Ed. 10/11) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXTENDED COVERAGE ENDORSEMENT - BA PLUS This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM I. LIABILITY COVERAGE A. Who Is An Insured The following is added to Section II, Paragraph A.1., Who Is An Insured: 1. a. Any incorporated entity of which the Named Insured owns a majority of the voting stock on the date of inception of this Coverage Form; provided that, b. The insurance afforded by this provision A.1. does not apply to any such entity that is an insured" under any other liability "policy" providing "auto" coverage. 2. Any organization you newly acquire or form, other than a limited liability company, partnership or joint venture, and over which you maintain majority ownership interest. The insurance afforded by this provision A.2.: a. Is effective on the acquisition or formation date, and is afforded only until the end of the policy period of this Coverage Form, or the next anniversary of its inception date, whichever is earlier. b. Does not apply to: 1) "Bodily injury" or "property damage" caused by an "accident" that occurred before you acquired or formed the organization; or 2) Any such organization that is an "insured" under any other liability "policy" providing auto" coverage. 3. Any person or organization that you are obligated to provide Insurance where required by a written contract or agreement is an insured, but only with respect to legal responsibility for acts or omissions of a person for whom Liability Coverage is afforded under this policy. 4. An "employee" of yours is an "insured" while operating an "auto" hired or rented under a contract or agreement in that "employee's" name, with your permission, while performing duties related to the conduct of your business. 1. Which are no longer in force, or 2. Whose limits have been exhausted. B. Bail Bonds and Loss of Earnings Section II, Paragraphs A.2.a.(2) and A.2.a.(4) are revised as follows: 1. In a.(2), the limit for the cost of bail bonds is increased from $2,000 to $5,000, and 2. In a.(4), the limit for the loss of earnings is increased from $250 to $500 a day. C. Fellow Employee Section II, Paragraph B.5 does not apply. Such coverage as is afforded by this provision C. is excess over any other collectible insurance. II. PHYSICAL DAMAGE COVERAGE A. Towing Section III. Paragraph A.2., is revised to include Light Trucks up to 10,000 pounds G.V.W. B. Transportation Expenses Section III, Paragraph A.4.a. is revised, with respect to transportation expense incurred by you, to provide: a. $60 per day, in lieu of $20; subject to b. $1,800 maximum, in lieu of $600. C. Loss of Use Expenses Section III, Paragraph A.4.b. is revised, with respect to loss of use expenses incurred by you, to provide: a. $1,000 maximum, in lieu of $600. D. Personal Property The following is added to Section III, Paragraph A.4. c. We will pay up to $500 for loss to Personal Property which is: 1) Owned by an "insured", and 2) In or on the covered "auto." This coverage applies only in the event of a total theft of your covered "auto." Policy," as used in this provision A. Who Is An This insurance is excess over any other collectible Insured, includes those policies that were in force on insurance and no deductible applies. the Inception date of this Coverage Form but: E. Rental Reimbursement SCA 23 500D09 Copyright, CNA Corporation, 2000. Page 1 of 3 Ed. 10/11) Includes copyrighted material of the Insurance Services Office used with its permission. Policy: 6056902999 The following is added to Section III, Paragraph A.4. d. We will pay for rental reimbursement expenses incurred by you for the rental of an "auto" because of "loss" to a covered "auto." Payment applies in addition to the otherwise applicable amount of each coverage you have on a covered "auto." No deductibles apply to this coverage. 1. We will pay only for those expenses incurred during the policy period beginning 24 hours after the "loss" and ending, regardless of the policy's expiration, with the lesser of the following number of days: a) The number of days reasonably required to repair or replace the covered "auto'; or, b) 15 days. 2. Our payment is limited to the lesser of the following amounts: a) Necessary and actual expenses incurred; or, b) $25 per day subject to a maximum of 375. 3. This coverage does not apply while there are spare or reserve "autos" available to you for your operations. 4. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided for under the Physical Damage Coverage Extension. F. Hired "Autos" The following is added to Section III. Paragraph A.: 5. Hired "Autos" If Physical Damage coverage is provided under this policy, and such coverage does not extend to Hired Autos, then Physical Damage coverage is extended to: a. Any covered "auto" you lease, hire, rent or borrow without a driver; and b. Any covered "auto" hired or rented by your employee" without a driver, under a contract in that individual "employee's" name, with your permission, while performing duties related to the conduct of your business. c. The most we will pay for any one "accident" or loss" is the actual cash value, cost of repair, cost of replacement or $75,000 whichever is less minus a $500 deductible for each covered auto. No deductible applies to "loss" caused by fire or lightning. SCA 23 500D09 Ed. 10/11) d. The physical damage coverage as is provided by this provision will be limited to the types of physical damage coverage(s) provided on your owned "autos." e. Such physical damage coverage for hired autos' will: 1) Include loss of use, provided it is the consequence of an "accident" for which the Named Insured is legally liable, and as a result of which a monetary loss is sustained by the leasing or rental concern. 2) Such coverage as is provided by this provision G.e.(1) will be subject to a limit of $750 per "accident." G. Airbag Coverage The following is added to Section III, Paragraph B.3. The accidental discharge of an airbag shall not be considered mechanical breakdown. H. Electronic Equipment Section III, Paragraphs B.4.c and B.4.d. are deleted and replaced by the following: C. Physical Damage Coverage on a covered auto" also applies to "loss" to any permanently installed electronic equipment including its antennas and other accessories d. A $100 per occurrence deductible applies to the coverage provided by this provision. I. Diminution In Value The following is added to Section III, Paragraph B.6 Subject to the following, the "diminution in value" exclusion does not apply to: a. Any covered "auto" of the private passenger type you lease, hire, rent or borrow, without a driver for a period of 30 days or less, while performing duties related to the conduct of your business; and b. Any covered "auto" of the private passenger type hired or rented by your "employee" without a driver for a period of 30 days or less, under a contract in that individual employee's" name, with your permission, while performing duties related to the conduct of your business. c. Such coverage as is provided by this provision is limited to a "diminution in value" loss arising directly out of accidental damage and not as a result of the failure to make repairs; faulty or incomplete maintenance or repairs; or the installation of substandard parts. SCA 23 500D09 copyright, cNA corporation, 2000. Page 2 of 3 Ed. 10/11) Includes copyrighted material of the Insurance Services Office used with its permission. Policy: 6056902999 d. The most we will pay for "loss" to a covered auto" in any one accident is the lesser of. 1) $5,000; or 2) 20% of the "auto's" actual cash value ACV) III. Drive Other Car Coverage — Executive Officers The following is added to Sections II and III: 1. Any "auto" you don't own, hire or borrow is a covered "auto" for Liability Coverage while being used by, and for Physical Damage Coverage while in the care, custody or control of, any of your executive officers," except: a. An "auto" owned by that "executive officer' or a member of that person's household; or b. An "auto" used by that "executive officer' while working in a business of selling, servicing, repairing or parking "autos." Such Liability and /or Physical Damage Coverage as is afforded by this provision will be: 1) Equal to the greatest of those coverages afforded any covered "auto" and 2) Excess over any other collectible insurance. 2. For purposes of this provision, "executive officer' means a person holding any of the officer positions created by your charter, constitution, by- laws or any other similar governing document, and, while a resident of the same household, includes that person's spouse. Such "executive officers" are "insureds" while using a covered "auto" described in this provision. IV. BUSINESS AUTO CONDITIONS A. Duties In The Event Of Accident, Claim, Suit Or Loss SCA 23 500D09 Ed. 10/11) The following is added to Section IV, Paragraph A.2.a. 4) Your "employees" may know of an "accident" or "loss." This will not mean that you have such knowledge, unless such "accident" or loss" is known to you or if you are not an individual, to any of your executive officers or partners or your insurance manager. The following is added to Section IV, Paragraph A.2.b. 6) Your "employees" may know of documents received concerning a claim or "suit." This will not mean that you have such knowledge, unless receipt of such documents is known to you or if you are not an individual, to any of your executive officers or partners or your insurance manager. B. Concealment, Misrepresentation or Fraud The following is added to Section IV, Paragraph 8.2 Your failure to disclose all hazards existing on the date of inception of this Coverage Form shall not prejudice you with respect to the coverage afforded provided such failure or omission is not intentional. C. Policy Period, Coverage Territory Section IV, Paragraphs 7.(5).(a). is revised to provide: a. 45 days of coverage in lieu of 30 days IV. DEFINITIONS Section V. Paragraph C. is deleted and replaced by the following: Bodily injury" means bodily injury, sickness or disease sustained by a person, including mental anguish, mental injury or death resulting from any of these SCA 23 500D09 Copyright, CNA Corporation, 2000. Page 3 of 3 Ed. 10/11) Includes copyrighted material of the Insurance services Office used with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement It is understood and agreed that this endorsement amends the COMMERCIAL GENERAL LIABILITY COVERAGE PART as follows. If any other endorsement attached to this policy amends any provision also amended by this endorsement, then that other endorsement controls with respect to such provision, and the changes made by this endorsement with respect to such provision do not apply. CNA74858XX (1 -15) Policy No: 6056903005 Page 1 of 18 Endorsement No: a CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2016 Copynght CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. TABLE OF CONTENTS 1. Additional Insureds 2. Additional Insured - Primary And Non - Contributory To Additional Insured's Insurance 3. Additional Insured— Extended Coverage 4. Boats 5. Bodily Injury — Expanded Definition 6. Broad Knowledge of Occurrence/ Notice of Occurrence 7. Broad Named Insured 8. Contractual Liability— Railroads 9. Estates, Legal Representatives and Spouses 10. Expected Or Intended Injury — Exception for Reasonable Force 11. General Aggregate Limits of Insurance — Per Location 12. In Rem Actions 13. Incidental Health Care Malpractice Coverage 14. Joint Ventures /Partnership /Limited Liability Companies 15. Legal Liability — Damage To Premises 16. Liquor Liability 17. Medical Payments 18. Non -owned Aircraft Coverage 19. Non -owned Watercraft 20. Personal And Advertising Injury — Discrimination or Humiliation 21. Personal And Advertising Injury - Contractual Liability 22. Property Damage — Elevators 23. Retired Partners, Members, Directors And Employees 24. Supplementary Payments 25. Unintentional Failure To Disclose Hazards 26. Waiver of Subrogation — Blanket 27. Wrap -Up Extension: OCIP, CCIP or Consolidated (Wrap -Up) Insurance Programs CNA74858XX (1 -15) Policy No: 6056903005 Page 1 of 18 Endorsement No: a CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2016 Copynght CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 1. ADDITIONAL INSUREDS a. WHO IS AN INSURED is amended to include as an Insured any person or organization described in paragraphs A. through 1, below whom a Named Insured is required to add as an additional insured on this Coverage Part under a written contract or written agreement, provided such contract or agreement: 1) is currently in effect or becomes effective during the term of this Coverage Part; and 2) was executed prior to: a) the bodily injury or property damage, or b) the offense that caused the personal and advertising injury, for which such additional insured seeks coverage. b. However, subject always to the terms and conditions of this policy, including the limits of insurance, the Insurer will not provide such additional insured with: 1) a higher limit of insurance than required by such contract or agreement; or 2) coverage broader than required by such contract or agreement, and in no event broader than that described by the applicable paragraph A. through I. below. Any coverage granted by this endorsement shall apply only to the extent permissible by law. A. Controlling Interest Any person or organization with a controlling interest in a Named Insured, but only with respect to such person or organization's liability for bodily injury, property damage or personal and advertising injury arising out of: 1. such person or organization's financial control of a Named Insured; or 2. premises such person or organization owns, maintains or controls while a Named Insured leases or occupies such premises; provided that the coverage granted by this paragraph does not apply to structural alterations, new construction or demolition operations performed by, on behalf of, or for such additional insured. B. Co -owner of Insured Premises A co -owner of a premises co -owned by a Named Insured and covered under this insurance but only with respect to such co- owner's liability for bodily injury, property damage or personal and advertising injury as co -owner of such premises. C. Engineers, Architects or Surveyors Engaged By You An architect, engineer or surveyor engaged by the Named Insured, but only with respect to liability for bodily injury, property damage or personal and advertising injury caused in whole or in part by the Named Insured's acts or omissions, or the acts or omissions of those acting on the Named Insured's behalf: a. in connection with the Named Insured's premises, or b. in the performance of the Named Insured's ongoing operations. But the coverage hereby granted to such additional insureds does not apply to bodily injury, property damage or personal and advertising injury arising out of the rendering of or failure to render any professional services by, on behalf of, or for the Named Insured, including but not limited to: CNA74858XX (1 -15) Policy No: 6056903005 Page 2 of 18 Endorsement No: 8 CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2018 Copynght CNA All Rights Reserved. Includes copyrighted material of Insurance Services office, Inc., with its permission. s CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 1. the preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and spe ificatlons; or 2. supervisory, inspection, architectural or engineering activities. D. Lessor of Equipment Any person or organization from whom a Named Insured leases equipment, but only with respect to liability for bodily injury, property damage or personal and advertising injury caused, in whole or in part, by the Named Insured's maintenance, operation or use of such equipment, provided that the occurrence giving rise to such bodily injury, property damage or the offense giving rise to such personal and advertising injury takes place prior to the termination of such lease. E. Lessor of Land Any person or organization from whom a Named Insured leases land but only with respect to liability for bodily injury, property damage or personal and advertising injury arising out of the ownership, maintenance or use of such land, provided that the occurrence giving rise to such bodily injury, property damage or the offense giving rise to such personal and advertising injury takes place prior to the termination of such lease. The coverage granted by this paragraph does not apply to structural alterations, new construction or demolition operations performed by, on behalf of, or for such additional insured. F. Lessor of Premises An owner or lessor of premises leased to the Named Insured, or such owner or lessor's real estate manager, but only with respect to liability for bodily injury, property damage or personal and advertising injury arising out of the ownership, maintenance or use of such part of the premises leased to the Named Insured, and provided that the occurrence giving rise to such bodily injury or property damage, or the offense giving rise to such personal and advertising injury, takes place prior to the termination of such lease. The coverage granted by this paragraph does not apply to structural alterations, new construction or demolition operations performed by, on behalf of, or for such additional insured. G. Mortgagee, Assignee or Receiver A mortgagee, assignee or receiver of premises but only with respect to such mortgagee, assignee or receiver's liability for bodily injury, property damage or personal and advertising injury arising out of the Named Insured's ownership, maintenance, or use of a premises by a Named Insured. The coverage granted by this paragraph does not apply to structural alterations, new construction or demolition operations performed by, on behalf of, or for such additional insured. H. State or Governmental Agency or Subdivision or Political Subdivisions — Permits A state or governmental agency or subdivision or political subdivision that has issued a permit or authorization but only with respect to such state or governmental agency or subdivision or political subdivision's liability for bodily injury, property damage or personal and advertising injury arising out of: the following hazards in connection with premises a Named Insured owns, rents, or controls and to which this insurance applies: a. the existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoistaway openings, sidewalk vaults, street banners, or decorations and similar exposures; or b. the construction, erection, or removal of elevators, or c. the ownership, maintenance or use of any elevators covered by this insurance; or CNA74858XX (1 -15) Page 3 of 18 CONTINENTAL CASUALTY COMPANY Policy No 6056903005 Endorsement No: a Effective Date: 01/01 /2018 copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability' Extension Endorsement 2. the permitted or authorized operations performed by a Named Insured or on a Named Insured's behalf. The coverage granted by this paragraph does not apply to: a. Bodily injury, property damage or personal and advertising injury arising out of operations performed for the state or governmental agency or subdivision or political subdivision; or b. Bodily injury or property damage included within the products- completed operations hazard. With respect to this provision's requirement that additional insured status must be requested under a written contract or agreement, the Insurer will treat as a written contract any governmental permit that requires the Named Insured to add the governmental entity as an additional insured. I. Trade Show Event Lessor 1. With respect to a Named Insured's participation in a trade show event as an exhibitor, presenter or displayer, any person or organization whom the Named Insured is required to include as an additional insured, but only with respect to such person or organization's liability for bodily injury, property damage or personal and advertising injury caused by: a. the Named Insured's acts or omissions; or b. the acts or omissions of those acting on the Named Insured's behalf, in the performance of the Named Insured's ongoing operations at the trade show event premises during the trade show event. 2. The coverage granted by this paragraph does not apply to bodily injury or property damage included within the products - completed operations hazard. 2. ADDITIONAL INSURED -PRIMARY AND NON- CONTRIBUTORY TO ADDITIONAL INSURED'S INSURANCE The Other Insurance Condition in the COMMERCIAL GENERAL LIABILITY CONDITIONS Section is amended to add the following paragraph: If the Named Insured has agreed in writing in a contract or agreement that this insurance is primary and non- contributory relative to an additional insured's own insurance, then this insurance is primary, and the Insurer will not seek contribution from that other insurance. For the purpose of this Provision 2., the additional insured's own insurance means insurance on which the additional insured is a named insured. Otherwise, and notwithstanding anything to the contrary elsewhere in this Condition, the insurance provided to such person or organization is excess of any other insurance available to such person or organization. 3. ADDITIONAL INSURED— EXTENDED COVERAGE When an additional insured is added by this or any other endorsement attached to this Coverage Part, WHO IS AN INSURED is amended to make the following natural persons Insureds. If the additional Insured Is: a. An individual, then his or her spouse is an Insured, b. A partnership or joint venture, then its partners, members and their spouses are Insureds; c. A limited liability company, then its members and managers are Insureds; or J. An organization other than a partnership, joint venture or limited liability company, then its executive officers, directors and shareholders are Insureds; CNA74858XX (1 -15) Page 4 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement but only with respect to locations and operations covered by the additional insured endorsement's provisions, and only with respect to their respective roles within their organizations. Please see the ESTATES, LEGAL REPRESENTATIVES, AND SPOUSES provision of this endorsement for additional coverage and restrictions applicable to spouses of natural person Insureds. 4. BOATS Under COVERAGES, Coverage A — Bodily Injury And Property Damage Liability, the paragraph entitled Exclusions is amended to add the following additional exception to the exclusion entitled Aircraft, Auto or Watercraft: This exclusion does not apply to: Any watercraft owned by the Named Insured that is less than 30 feet long while being used in the course of the Named Insured's inspection or surveying work. 5. BODILY INJURY— EXPANDED DEFINITION Under DEFINITIONS, the definition of bodily injury is deleted and replaced by the following: Bodily injury means physical injury, sickness or disease sustained by a person, including death, humiliation, shock, mental anguish or mental injury sustained by that person at any time which results as a consequence of the physical injury, sickness or disease. 6. BROAD KNOWLEDGE OF OCCURRENCE/ NOTICE OF OCCURRENCE Under CONDITIONS, the condition entitled Duties in The Event of Occurrence, Offense, Claim or Suit is amended to add the following provisions: A. BROAD KNOWLEDGE OF OCCURRENCE The Named Insured must give the Insurer or the Insurer's authorized representative notice of an occurrence, offense or claim only when the occurrence, offense or claim is known to a natural person Named Insured, to a partner, executive officer, manager or member of a Named Insured, or to an employee designated by any of the above to give such notice. B. NOTICE OF OCCURRENCE The Named Insured's rights under this Coverage Part will not be prejudiced if the Named Insured fails to give the Insurer notice of an occurrence, offense or claim and that failure is solely due to the Named Insured's reasonable belief that the bodily injury or property damage is not covered under this Coverage Part. However, the Named Insured shall give written notice of such occurrence, offense or claim to the Insurer as soon as the Named Insured is aware that this insurance may apply to such occurrence, offense or claim. 7. BROAD NAMED INSURED WHO IS AN INSURED is amended to delete its Paragraph 3. in its entirety and replace it with the following: 3. Pursuant to the limitations described in Paragraph 4. below, any organization in which a Named Insured has management control: a. on the effective date of this Coverage Part; or b. by reason of a Named Insured creating or acquiring the organization during the policy period, qualifies as a Named Insured, provided that there is no other similar liability insurance, whether primary, contributory, excess, contingent or otherwise, which provides coverage to such organization, or which would have GNA74858XX (1 -15) Page 5 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01 /2018 copyright CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. i CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement provided coverage but for the exhaustion of its limit, and without regard to whether its coverage is broader or narrower than that provided by this insurance. But this BROAD NAMED INSURED provision does not apply to: a) any partnership, limited liability company or joint venture; or b) any organization for which coverage is excluded by another endorsement attached to this Coverage Part. For the purpose of this provision, management control means: A. owning interests representing more than 50% of the voting, appointment or designation power for the selection of a majority of the Board of Directors of a corporation; or B. having the right, pursuant to a written trust agreement, to protect, control the use of, encumber or transfer or sell property held by a trust. 4. With respect to organizations which qualify as Named Insureds by virtue of Paragraph 3. above, this insurance does not apply to: a. bodily injury or property damage that first occurred prior to the date of management control, or that first occurs after management control ceases; nor b. personal or advertising injury caused by an offense that first occurred prior to the date of management control or that first occurs after management control ceases. 5. The insurance provided by this Coverage Part applies to Named Insureds when trading under their own names or under such other trading names or doing- business -as names (dba) as any Named Insured should choose to employ. 8. CONTRACTUAL LIABILITY— RAILROADS With respect to operations performed within 50 feet of railroad property, the definition of insured contract is replaced by the following: Insured Contract means: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while rented to a Named Insured or temporarily occupied by a Named Insured you with permission of the owner is not an insured contract; b. A sidetrack agreement, c. Any easement or license agreement; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to the Named Insured's business (including an indemnification of a municipality in connection with work performed for a municipality) under which the Named Insured assumes the tort liability of another party to pay for bodily injury or property damage to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: CNA74858XX (1 -15) Page 6 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 1) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: a) Preparing, approving or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; 2) Under which the Insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in (1) above and supervisory, inspection, architectural or engineering activities. 9. ESTATES, LEGAL REPRESENTATIVES, AND SPOUSES The estates, executors, heirs, legal representatives, administrators, trustees, beneficiaries and spouses of any natural person Insured or living trust shall also be insured under this policy; provided, however, coverage is afforded to such estates, executors, heirs, legal representatives, administrators, trustees, beneficiaries and spouses only for claims arising solely out of their capacity or status as such and, in the case of a spouse, where such claim seeks damages from marital community property, jointly held property or property transferred from such natural person Insured to such spouse. No coverage is provided for any act, error or omission of an estate, heir, legal representative, or spouse outside the scope of such person's capacity or status as such, provided, however, that the spouse of a natural person Named Insured, and the spouses of members or partners of joint venture or partnership Named Insureds are Insureds with respect to such spouses' acts, errors or omissions in the conduct of the Named Insured's business. 10. EXPECTED OR INTENDED INJURY — EXCEPTION FOR REASONABLE FORCE Under COVERAGES, Coverage A — Bodily Injury And Property Damage Liability, the paragraph entitled Exclusions is amended to delete the exclusion entitled Expected or Intended Injury and replace it with the following: This insurance does not apply to: Expected or Intended Injury Bodily injury or property damage expected or intended from the standpoint of the Insured. This exclusion does not apply to bodily injury or property damage resulting from the use of reasonable force to protect persons or property. 11. GENERAL AGGREGATE LIMITS OF INSURANCE - PER LOCATION A. A separate Location General Aggregate Limit, equal to the amount of the General Aggregate Limit, is the most the Insurer will pay for the sum of: 1. All damages under Coverage A, except damages because of bodily injury or property damage included in the products - completed operations hazard; and 2. All medical expenses under Coverage C, that arise from occurrences or accidents which can be attributed solely to ongoing operations at that location. Such payments shall not reduce the General Aggregate Limit shown in the Declarations, nor the Location General Aggregate Limit of any other location. B. All: 1. Damages under Coverage B, regardless of the number of locations involved; CNA74858XX (1 -15) Page 7 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 copyright CNA AII Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 2. Damages under Coverage A, caused by occurrences which cannot be attributed solely to ongoing operations at a single location, except damages because of bodily injury or property damage included in the products - completed operations hazard, and 3. Medical expenses under Coverage C caused by accidents which cannot be attributed solely to ongoing operations at a single location, will reduce the General Aggregate Limit shown in the Declarations. C. For the purpose of this GENERAL AGGREGATE LIMITS OF INSURANCE - PER LOCATION Provision, location" means: 1. a premises the Named Insured owns or rents, or 2, a premises not owned or rented by any Named Insured at which the Named Insured is performing operations pursuant to a contract or written agreement. If operations at such a location have been discontinued and then restarted, or if the authorized parties deviate from plans, blueprints, designs, specifications or timetables, the location will still be deemed to be the same location. For the purpose of determining the applicable aggregate limit of insurance, premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right -of -way of a railroad shall be considered a single location. D. The limits shown in the Declarations for Each Occurrence, for Damage To Premises Rented To You and for Medical Expense continue to apply, but will be subject to either the Location General Aggregate Limit or the General Aggregate Limit, depending on whether the occurrence can be attributed solely to ongoing operations at a particular location. E. When coverage for liability arising out of the products - completed operations hazard is provided, any payments for damages because of bodily injury or property damage included in the products - completed operations hazard, regardless of the number of locations involved, will reduce the Products - Completed Operations Aggregate Limit shown in the Declarations. F. The provisions of LIMITS OF INSURANCE not otherwise modified by this GENERAL AGGREGATE LIMITS OF INSURANCE - PER LOCATION Provision shall continue to apply as stipulated. 12. IN REM ACTIONS A quasi in rem action against any vessel owned or operated by or for the Named Insured, or chartered by or for the Named Insured, will be treated in the same manner as though the action were in personam against the Named Insured. 13. INCIDENTAL HEALTH CARE MALPRACTICE COVERAGE Solely with respect to bodily injury that arises out of a health care incident: A. Under COVERAGES, Coverage A — Bodily Injury And Property Damage Liability, the Insuring Agreement is amended to replace Paragraphs 1.ti and 1.b.(2) with the following: b. This insurance applies to bodily injury provided that the professional health care services are incidental to the Named Insured's primary business purpose, and only if: 1) such bodily injury is caused by an occurrence that takes place in the coverage territory. 2) the bodily injury first occurs during the policy period. All bodily injury arising from an occurrence will be deemed to have occurred at the time of the first act, error, or omission that is part of the occurrence, and CNA74858XX (1 -15) Policy No: 6056903005 Page 8 of 18 Endorsement No: a CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2018 copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement B. Under COVERAGES, Coverage A — Bodily Injury And Property Damage Liability, the paragraph entitled Exclusions is amended to: i. add the following to the Employers Liability exclusion: This exclusion applies only if the bodily injury arising from a health care incident is covered by other liability insurance available to the Insured (or which would have been available but for exhaustion of its limits). ii. delete the exclusion entitled Contractual Liability and replace it with the following: This insurance does not apply to: Contractual Liability the Insured's actual or alleged liability under any oral or written contract or agreement, including but not limited to express warranties or guarantees. iii. to add the following additional exclusions: This insurance does not apply to: Discrimination any actual or alleged discrimination, humiliation or harassment, including but not be limited to claims based on an individual's race, creed, color, age, gender, national origin, religion, disability, marital status or sexual orientation. Dishonesty or Crime Any actual or alleged dishonest, criminal or malicious act, error or omission. Medicare /Medicaid Fraud any actual or alleged violation of law with respect to Medicare, Medicaid, Tricare or any similar federal, state or local governmental program. Services Excluded by Endorsement Any health care incident for which coverage is excluded by endorsement. C. DEFINITIONS is amended to: L add the following definitions: Health care incident means an act, error or omission by the Named Insured's employees or volunteer workers in the rendering of: a. professional health care services on behalf of the Named Insured or b. Good Samaritan services rendered in an emergency and for which no payment is demanded or received. Professional health care services means any health care services or the related furnishing of food, beverages, medical supplies or appliances by the following providers in their capacity as such but solely to the extent they are duly licensed as required: a. Physician. CNA74858XX (1 -15) Policy No: 6056903005 Page 9 of 18 Endorsement No: a CONTINENTAL CASUALTY COMPANY Effective Date: 01/01 /2018 Copynght CNA AJI Rights Reserved. Includes copynghted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement b. Nurse; c. Nurse practitioner; d. Emergency medical technician; e. Paramedic; f. Dentist; g. Physical therapist; h. Psychologist, I. Speech therapist, j. Other allied health professional; or Professional health care services does not include any services rendered in connection with human clinical trials or product testing. ii. delete the definition of occurrence and replace it with the following: Occurrence means a health care incident. All acts, errors or omissions that are logically connected by any common fact, circumstance, situation, transaction, event, advice or decision will be considered to constitute a single occurrence; iii. amend the definition of Insured to: a. add the following: the Named Insured's employees are Insureds with respect to: 1) bodily injury to a co- employee while in the course of the co- employee's employment by the Named Insured or while performing duties related to the conduct of the Named Insured's business; and 2) bodily injury to a volunteer worker while performing duties related to the conduct of the Named Insured's business; when such bodily injury arises out of a health care incident. the Named Insured's volunteer workers are Insureds with respect to: 1) bodily injury to a co- volunteer worker while performing duties related to the conduct of the Named Insured's business; and 2) bodily injury to an employee while in the course of the employee's employment by the Named Insured or while performing duties related to the conduct of the Named Insured's business; when such bodily injury arises out of a health care incident. b. delete Subparagraphs (a), (b), (c) and (d) of Paragraph 2.a.(1) of WHO IS AN INSURED. D. The Other Insurance condition is amended to delete Paragraph b.(1) in its entirety and replace it with the following: Other Insurance CNA74858XX (1 -15) Page 10 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA All Rights Reserved. Includes copyrighted material of Insurance Services ice, Inc., with its permission. CHA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement b. Excess Insurance 1) To the extent this insurance applies, it is excess over any other insurance, self insurance or risk transfer instrument, whether primary, excess, contingent or on any other basis, except for insurance purchased specifically by the Named Insured to be excess of this coverage. 14. JOINT VENTURES / PARTNERSHIP / LIMITED LIABILITY COMPANIES A. Past Joint Ventures, Partnerships, Limited Liability Companies The following is added to WHO IS AN INSURED: If the Named Insured was a joint venturer, partner, or member of a limited liability company and such joint venture, partnership or limited liability company terminated prior to or during the policy period, such Named Insured is an Insured with respect to its interest in such joint venture, partnership or limited liability company but only to the extent that: a. any offense giving rise to personal and advertising injury occurred prior to such termination date, and the personal and advertising injury arising out of such offense, first occurred after such termination date; b. the bodily injury or property damage first occurred after such termination date, and c. there is no other valid and collectible insurance purchased specifically to insure the partnership, joint venture or limited liability company. If the joint venture, partnership or limited liability company is or was insured under a consolidated (wrap -up) insurance program, then such insurance will always be considered valid and collectible for the purpose of paragraph c. above. But this provision will not serve to exclude bodily injury, property damage or personal and advertising injury that would otherwise be covered under the Architects, Engineers And Surveyors General Liability Extension Endorsement provision entitled WRAP -UP EXTENSION: OCIP, CCIP, OR CONSOLIDATED (WRAP -UP) INSURANCE PROGRAMS. Please see that provision for the definition of consolidated (wrap -up) insurance program. B. Participation In Current Professional Joint Ventures The following is added to WHO IS AN INSURED: The Named Insured is also an Insured for participation in a current joint venture that is not named on the Declarations, but only if such joint venture meets all of the following criteria: a. Each and every one of the Named Insured's co- venturers are architectural, engineering or surveying firms only; and b. There is no other valid and collectible insurance purchased specifically to insure the joint venture. However, the Named Insured is an Insured only for the conduct of such Named Insured's business within such a joint venture. The Named Insured is not insured for liability arising out of the acts or omissions of other co- venturers, nor of their partners, members or employees. C. WHO IS AN INSURED is amended to delete its last paragraph and replace it with the following: Except as provided under this Architects, Engineers And Surveyors General Liability Extension Endorsement or by the attachment of another endorsement (if any), no person or organization is an Insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. CNA74858XX (1 -15) Page 11 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6OS6903005 Endorsement No 8 Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copyrighted material of Insurance services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 15. LEGAL LIABILITY — DAMAGE TO PREMISES / ALIENATED PREMISES / PROPERTY IN THE NAMED INSURED'S CARE, CUSTODY OR CONTROL A. Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended to delete exclusion j. Damage to Property in its entirety and replace it with the following: This insurance does not apply to: j. Damage to Property Property damage to: 1) Property the Named Insured owns, rents, or occupies, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; 2) Premises the Named Insured sells, gives away or abandons, if the property damage arises out of any part of those premises; 3) Property loaned to the Named Insured; 4) Personal property in the care, custody or control of the Insured; 5) That particular part of real property on which the Named Insured or any contractors or subcontractors working directly or indirectly on the Named Insured's behalf are performing operations, if the property damage arises out of those operations, or 6) That particular part of any property that must be restored, repaired or replaced because your work was incorrectly performed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to property damage (other than damage by fire) to premises rented to the Named Insured or temporarily occupied by the Named Insured with the permission of the owner, nor to the contents of premises rented to the Named Insured for a period of 7 or fewer consecutive days. A separate limit of insurance applies to Damage To Premises Rented To You as described in LIMITS OF INSURANCE. Paragraph (2) of this exclusion does not apply if the premises are your work. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to property damage included in the products - completed operations hazard. Paragraphs (3) and (4) of this exclusion do not apply to property damage to: i, tools, or equipment the Named Insured borrows from others, nor ii. other personal property of others in the Named Insured's care, custody or control while being used in the Named Insured's operations away from any Named Insured's premises. However, the coverage granted by this exception to Paragraphs (3) and (4) does not apply to: a. property at a job site awaiting or during such property's installation, fabrication, or erection, b. property that is mobile equipment leased by an Insured; CNA74858XX (1 -15) Policy No: 6056903005 Page 12 of 18 Endorsement No e CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2018 Copyright CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement c. property that is an auto, aircraft or watercraft; d. property in transit; or e. any portion of property damage for which the Insured has available other valid and collectible insurance, or would have such insurance but for exhaustion of its limits, or but for application of one of its exclusions. A separate limit of insurance and deductible apply to such property of others. See LIMITS OF INSURANCE as amended below. B. Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended to delete its last paragraph and replace it with the following: Exclusions c. through n. do not apply to damage by fire to premises while rented to a Named Insured or temporarily occupied by a Named Insured with permission of the owner, nor to damage to the contents of premises rented to a Named Insured for a period of 7 or fewer consecutive days. A separate limit of insurance applies to this coverage as described in LIMITS OF INSURANCE. C. The following paragraph is added to LIMITS OF INSURANCE: Subject to 5. above, $25,000 is the most the Insurer will pay under Coverage A for damages arising out of any one occurrence because of the sum of all property damage to borrowed tools or equipment, and to other personal property of others in the Named Insured's care, custody or control, while being used in the Named Insured's operations away from any Named Insured's premises. The Insurer's obligation to pay such property damage does not apply until the amount of such property damage exceeds $1,000. The Insurer has the right but not the duty to pay any portion of this $1,000 in order to effect settlement. If the Insurer exercises that right, the Named Insured will promptly reimburse the Insurer for any such amount. D. Paragraph 6., Damage To Premises Rented To You Limit, of LIMITS OF INSURANCE is deleted and replaced by the following: 6. Subject to Paragraph 5. above, (the Each Occurrence Limit), the Damage To Premises Rented To You Limit is the most the Insurer will pay under Coverage A for damages because of property damage to any one premises while rented to the Named Insured or temporarily occupied by the Named Insured with the permission of the owner, including contents of such premises rented to the Named Insured for a period of 7 or fewer consecutive days. The Damage To Premises Rented To You Limit is the greater of: a. $500,000; or b. The Damage To Premises Rented To You Limit shown in the Declarations. E. Paragraph 4.b.(1)(a)(ii) of the Other Insurance Condition is deleted and replaced by the following: ii) That is property insurance for premises rented to the Named Insured, for premises temporarily occupied by the Named Insured with the permission of the owner; or for personal property of others in the Named Insured's care, custody or control; 16. LIQUOR LIABILITY Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended to delete the exclusion entitled Liquor Liability. This LIQUOR LIABILITY Provision does not apply to any person or organization who otherwise qualifies as an additional insured on this Coverage Part. CNA74858XX (1 -15) Page 13 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 17. MEDICAL PAYMENTS A. LIMITS OF INSURANCE is amended to delete Paragraph 7. (the Medical Expense Limit) and replace it with the following: 7. Subject to Paragraph 5. above (the Each Occurrence Limit), the Medical Expense Limit is the most the Insurer will pay under Coverage C for all medical expenses because of bodily injury sustained by any one person. The Medical Expense Limit is the greater of: 1) $15,000 unless a different amount is shown here: $N,NNN,NNN,NNN; or 2) the amount shown in the Declarations for Medical Expense Limit. B. Under COVERAGES, the Insuring Agreement of Coverage C — Medical Payments is amended to replace Paragraph 1.a.(3)(b) with the following: b) The expenses are incurred and reported to the Insurer within three years of the date of the accident; and 18. NON -OWNED AIRCRAFT Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended as follows: The exclusion entitled Aircraft, Auto or Watercraft is amended to add the following: This exclusion does not apply to an aircraft not owned by any Named Insured, provided that: 1. the pilot in command holds a currently effective certificate issued by the duly constituted authority of the United Stales of America or Canada, designating that person as a commercial or airline transport pilot; 2. the aircraft is rented with a trained, paid crew to the Named Insured; and 3. the aircraft is not being used to carry persons or property for a charge. 19. NON -OWNED WATERCRAFT Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended to delete subparagraph (2) of the exclusion entitled Aircraft, Auto or Watercraft, and replace it with the following. This exclusion does not apply to: 2) a watercraft that is not owned by any Named Insured, provided the watercraft is: a) less than 75 feet long, and b) not being used to carry persons or property for a charge. 20. PERSONAL AND ADVERTISING INJURY — DISCRIMINATION OR HUMILIATION A. Under DEFINITIONS, the definition of personal and advertising injury is amended to add the following tort: Discrimination or humiliation that results in injury to the feelings or reputation of a natural person. B. Under COVERAGES, Coverage B — Personal and Advertising Injury Liability, the paragraph entitled Exclusions is amended to: 1. delete the Exclusion entitled Knowing Violation Of Rights Of Another and replace it with the following: CNA74858XX (1 -15) Page 14 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJ Rights Reserved. Indudes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement This insurance does not apply to: Knowing Violation of Rights of Another Personal and advertising injury caused by or at the direction of the Insured with the knowledge that the act would violate the rights of another and would inflict personal and advertising injury. This exclusion shall not apply to discrimination or humiliation that results in injury to the feelings or reputation of a natural person, but only if such discrimination or humiliation is not done intentionally by or at the direction of. a) the Named Insured; or b) any executive officer, director, stockholder, partner, member or manager (if the Named Insured is a limited liability company) of the Named Insured. 2. add the following exclusions: This insurance does not apply to: Employment Related Discrimination discrimination or humiliation directly or indirectly related to the employment, prospective employment, past employment or termination of employment of any person by any Insured. Premises Related Discrimination discrimination or humiliation arising out of the sale, rental, lease or sub -lease or prospective sale, rental, lease or sub -lease of any room, dwelling or premises by or at the direction of any Insured. Notwithstanding the above, there is no coverage for fines or penalties levied or imposed by a governmental entity because of discrimination. The coverage provided by this PERSONAL AND ADVERTISING INJURY — DISCRIMINATION OR HUMILIATION Provision does not apply to any person or organization whose status as an Insured derives solely from Provision 1. ADDITIONAL INSURED of this endorsement; or attachment of an additional insured endorsement to this Coverage Part. 21. PERSONAL AND ADVERTISING INJURY - CONTRACTUAL LIABILITY A. Under COVERAGES, Coverage B — Personal and Advertising Injury Liability, the paragraph entitled Exclusions is amended to delete the exclusion entitled Contractual Liability. B. Solely for the purpose of the coverage provided by this PERSONAL AND ADVERTISING INJURY - LIMITED CONTRACTUAL LIABILITY provision, the following changes are made to the section entitled SUPPLEMENTARY PAYMENTS — COVERAGES A AND B: 1. Paragraph 2.d. is replaced by the following: d. The allegations in the suit and the information the Insurer knows about the offense alleged in such suit are such that no conflict appears to exist between the interests of the Insured and the interests of the indemnitee; 2. The first unnumbered paragraph beneath Paragraph 2.f.(2)(b) is deleted and replaced by the following: So long as the above conditions are met, attorney's fees incurred by the Insurer in the defense of that indemnitee, necessary litigation expenses incurred by the Insurer, and necessary litigation expenses incurred CNA74858XX (1 -15) Page 15 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copyright CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement by the indemnitee at the Insurer's request will be paid as defense costs. Such payments will not be deemed to be damages for personal and advertising injury and will not reduce the limits of insurance. C. This PERSONAL AND ADVERTISING INJURY - LIMITED CONTRACTUAL LIABILITY Provision does not apply if Coverage B — Personal and Advertising Injury Liability is excluded by another endorsement attached to this Coverage Part. This PERSONAL AND ADVERTISING INJURY - CONTRACTUAL LIABILITY Provision does not apply to any person or organization who otherwise qualifies as an additional insured on this Coverage Part. 22. PROPERTY DAMAGE —ELEVATORS A. Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended such that the Damage to Your Product Exclusion and subparagraphs (3), (4) and (6) of the Damage to Property Exclusion do not apply to property damage that results from the use of elevators. B. Solely for the purpose of the coverage provided by this PROPERTY DAMAGE — ELEVATORS Provision, the Other Insurance conditions is amended to add the following paragraph: This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis that is Property insurance covering property of others damaged from the use of elevators. 23. RETIRED PARTNERS, MEMBERS, DIRECTORS AND EMPLOYEES WHO IS INSURED is amended to include as Insureds natural persons who are retired partners, members, directors or employees, but only for bodily injury, property damage or personal and advertising injury that results from services performed for the Named Insured under the Named Insured's direct supervision. All limitations that apply to employees and volunteer workers also apply to anyone qualifying as an Insured under this Provision. 24. SUPPLEMENTARY PAYMENTS The section entitled SUPPLEMENTARY PAYMENTS — COVERAGES A AND B is amended as follows: A. Paragraph 1.b. is amended to delete the $250 limit shown for the cost of bail bonds and replace it with a $5,000. limit; and B. Paragraph 1.d. is amended to delete the limit of $250 shown for daily loss of earnings and replace it with a 1,000. limit. 25. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS If the Named Insured unintentionally fails to disclose all existing hazards at the inception date of the Named Insured's Coverage Part, the Insurer will not deny coverage under this Coverage Part because of such failure. 26. WAIVER OF SUBROGATION - BLANKET Under CONDITIONS, the condition entitled Transfer Of Rights Of Recovery Against Others To Us is amended to add the following: The Insurer waives any right of recovery the Insurer may have against any person or organization because of payments the Insurer makes for injury or damage arising out of: 1. the Named Insured's ongoing operations; or 2. your work included in the products- completed operations hazard. However, this waiver applies only when the Named Insured has agreed in writing to waive such rights of recovery in a written contract or written agreement, and only if such contract or agreement: CNA74858XX (1 -15) Page 16 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No 8 Effective Date: 01/01/2018 Copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services ice, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 1. is in effect or becomes effective during the term of this Coverage Part; and 2. was executed prior to the bodily injury, property damage or personal and advertising injury giving rise to the claim. 27. WRAP -UP EXTENSION: OCIP, CCIP, OR CONSOLIDATED (WRAP -UP) INSURANCE PROGRAMS Note: The following provision does not apply to any public construction project in the state of Oklahoma, nor to any construction project in the state of Alaska, that is not permitted to be insured under a consolidated (wrap -up) insurance program by applicable state statute or regulation. If the endorsement EXCLUSION — CONSTRUCTION WRAP -UP is attached to this policy, or another exclusionary endorsement pertaining to Owner Controlled Insurance Programs (O.C.I.P.) or Contractor Controlled Insurance Programs (C.C.I.P.) is attached, then the following changes apply: A. The following wording is added to the above - referenced endorsement: With respect to a consolidated (wrap -up) insurance program project in which the Named Insured is or was involved, this exclusion does not apply to those sums the Named Insured become legally obligated to pay as damages because of: 1. Bodily injury, property damage, or personal or advertising injury that occurs during the Named Insured's ongoing operations at the project, or during such operations of anyone acting on the Named Insured's behalf: nor 2. Bodily injury or property damage included within the products - completed operations hazard that arises out of those portions of the project that are not residential structures. B. Condition 4. Other Insurance is amended to add the following subparagraph 4.b.(1)(c): This insurance is excess over: c) Any of the other insurance whether primary, excess, contingent or any other basis that is insurance available to the Named Insured as a result of the Named Insured being a participant in a consolidated (wrap -up) insurance program, but only as respects the Named Insured's involvement in that consolidated (wrap -up) insurance program. C. DEFINITIONS is amended to add the following definitions: Consolidated (wrap -up) insurance program means a construction, erection or demolition project for which the prime contractor /project manager or owner of the construction project has secured general liability insurance covering some or all of the contractors or subcontractors involved in the project, such as an Owner Controlled Insurance Program (O.C.I.P.) or Contractor Controlled Insurance Program (C.C.I.P.). Residential structure means any structure where 30% or more of the square foot area is used or is intended to be used for human residency, including but not limited to: 1. single or multifamily housing, apartments, condominiums, townhouses, co- operatives or planned unit developments; and 2, the common areas and structures appurtenant to the structures in paragraph 1. (including pools, hot tubs, detached garages, guest houses or any similar structures). However, when there is no individual ownership of units, residential structure does not include military housing, college /university housing or dormitories, long term care facilities, hotels or motels. Residential structure also does not include hospitals or prisons. CNA74858XX (1 -15) Page 17 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement This WRAP -UP EXTENSION: OCIP, CCIP, OR CONSOLIDATED (WRAP -UP) INSURANCE PROGRAMS Provision does not apply to any person or organization who otherwise qualifies as an additional insured on this Coverage Part. All other terms and conditions of the Policy remain unchanged. This endorsement, which forms a part of and is for attachment to the Policy issued by the designated Insurers, takes effect on the effective date of said Policy at the hour stated in said Policy, unless another effective date is shown below, and expires concurrently with said Policy. Page 18 of 18 CONTINENTAL CASUALTY COMPANY Policy No 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services (ice, Inc., with its permission. Iv - Lic Type General Business License L + r License # APP0003 Customer# , 0036545 City Hal f, ``'} (a0%{ Expires, June 30 2019 ` aT Q Date Printed 08/20/2012118 " - Street, - , ' - Seal l3each'CA 90740 -6379 562)431 25271Ext 13146r,1332', r '. ' >:. KC Email BusmessLicenseQaseslbeachca.'gov BUS11lC$$L1CCri$C Business L'ocahon 3737• BIRCH 4250t L,1C0riSe, ISSUt;d TO-"' f+E NEWPORT BEACH CA 92660 Anderson -Perna Partners,slnc yV• q 7 gh S{ Business T e3737BIRCH #250 * y : :. NEWPORT BEACH CA 92660 EngitieenngSvc; Owner s /Agent s•Name:.._ < , . Business , , -. Lisa'Penna * Engineering. Services POST INA CONSPICUOUS PLACE NNOTTRASFERABLE - el } r City vf Seal Beach Ordinance NO: 1653_ The bus(ness.license fak imposed by dies Chapter shall not apply to any. business whichthas gross anndal receipts,of. 25 000(or less m the'one year ,penod,immedtately,preceding the issuance of a business icense To establish eligibiltyyfor the for thisiexeirption,,the business stiall,provide "such documentation;as requested by, i16e Director,of Finance including without limitationZtaz •returns, and financial documentation The`Directozof Finance shall•' establish such policies and procedures as are nece-ssary'to implement the'exemption granted heremf Any business . operating Iwthe' Gty with gross,receiptsiof more thanl$25,000, amivally shall pay,the full amount of the'applicable and afcopy,iof onerof the following Federal.Tax Returns must be submitted + ? y EXEMPTION. REOUIREMENTS .y` 2017Federal flax Returns (,,' x • r, - !: schedule C (Foim 1040) Profit or'Loss From Busmes "s`(Sole'Proprietorship) or '' " ' ; y-•' 4 }Sehedule'E (For_'m• 1040)'— Supplemental' Income and,Losst.(From Rei4iti a[r Fstate, iRoyalnes "-P, armersHipsv S;Corporations, Fstwes ,Trusts etc) or x r ae k,;.' ' t , Schedule'C EZ(Formg1040) Net!ProfitfFrom m6usess (SglePropraetorship) or w y•., Form' 1065`= U.S.;Re[uin of Par°tr"iership income' w Please note: All Independent;Contractors within an establishment are required to apply fora city business °license: Independent.Coniractors are those who work'on the premises, whose Federal /State incorneltaxes are`not typically withheld by the employerlbusiness owne',and receive an,annual Fed'eral-lncome'.Tax Fomi 1099 S s f l o r r AMENDMENT NO. 1 PROFESSIONAL SERVICES AGREEMENT between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 0 AndersonPenna Partners, Inc. 3737 Birch Street, STE 250 Newport Beach Newport Beach, CA 92660 T (949) 428-1500, F (949) 258-5053 This Amendment No. 1, dated January 27, 2020, amends that certain agreement Agreement') dated November 13, 2018 by and between the City of Seal Beach City"), a California charter city and Anderson PennaPartners, Inc. ("Consultant'), a California corporation. RECITALS A. City and Consultant are parties to the Agreement, pursuant to which Consultant provides public works inspector and support services to City for the Ocean Place Development Project ("Project"). B. City and Consultant wish to amend the Agreement for Consultant to provide additional professional construction management and inspection services to ensure all public infrastructure in the Project is constructed in accordance with City standard specifications, to continue plan checking services for the Project, and to increase Consultant's compensation by 35,639.10 for those additional services required in connection with the Project, for revised total compensation in the not -to -exceed amount of $385,639.10, 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/or Exhibit B-1, and this Agreement, as amended by Amendment No. 1, Amendment No. 1 to this Agreement, shall control. Section 2. Section 2.0 (Consultant's Compensation) of the Agreement is hereby amended to read as follows: 2.0 Consultant's Compensation City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibits A and A-1 for Services but in no event will the City pay more than $385,639.10. 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 and A-1." Section 3. 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. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. I to be executed and attested by their proper officers thereunto: CITY OF SEAL BEACH CONSULTANT ABy: X X ,%-# %, By:ez,-. f yf*aifi, City Man Name: LISA M. PE&jAjA Attest: rill , By.L-'- Gloria 0. Harper, Approved By: triI6 A. Steele, City Attorney A Its: V/( Pbam no* AM WN&M mq~ for C&PMWM wx*r Conk Code PIS, unbu ompolaft dommma suffmUo only on* pwm to s4n M AgrowmW on 6~0f"W mmomm.) EXHIBIT A Ocean Place (Tract 17425) Construction Management and Inspection Services PROFESSIONAL SERVICES AGREEMENT AMENDMENT NUMBER 1 ANDERSON • PENNA PARTNERS IN PROJECT DELIVERY. January 8, 2020 Mr. Steve Myrter Oiredor of Public Works City of Seal Beach 211 Eighth Street, Seal Beach, CA 90740 Subject: Amendment No. 1 to the Profession Service Agreement for Ocean Place (Tract 17425) Construction Managemnirt and inspection Services Dear Mr. Myrter, AndersonPenna Partners, Inc. (APP) is submitting this amendment per you request for an additional not -to -exceed fee of 35,639.10 as required to ensure construction management and inspection services through completion of the pubk facilities that will be turned over to the City, and continued BMP monitoring and finalization of grading associated with this project. The estimate of time remaining, and fee are shown in the table below. Esdnlnbd Fu f2quf Sul Mvd1 rAn aldl1 and t"dmcUm k*KUM Swvkas AmmdnlMt 9" KW OvwMPnt. TrW 17425 ltttrltlJ Mficdul IRIS ` ToW lIan Un"Alt lal 1/ MMg lA0 MQO S MA S 3,330.00 k.R+.u.Ew•twe.m..N.rnrrfl.a Ino Mao s I1S.00 s 3,330.00 F*kWr b"ft-hwA4NW ISA 21000 S 410 3 3831000 OOwwMblNrtrdt IAO 18.00 S 120.10 S 1.16&00 t al w.ldnvr« s ns1o. The estimates above include finishing of grading and drainage of the park, all offsite and onsite uglily and street work, recertifying of pads used for laydown, final check of grading and area drains after the homes are built per plan, the inspector is usual called out after the trades are done with the outside of the homes to verify areas around the homes are graded, cleaned up and area drains and downdrains are properly installed ready for homeowner occupation; and policing BMPs before and after storm events. Our unknown is the weather and Shea's construction schedule. We have assumed 18 weeks remaining, with work reducing over time. The table above takes that reduction In manpower Into account. The above also assumes that the City's building department will conduct inspections for the remaining retaining walls, park bridges and home building. Please feel free to contact me or Terry Kelley should you have any questions or require additional information. We look forward to a successful completion of this very important project. IIFage Professional Construction Phase Plan Chedaing and Inspection Services City of Seal Beach for the Ocean Place Development, Tradc 17425 IN Sincerely, AndersonPenna Partners, Inc. Stephen G. Badum, PE Vice President, Municipal and Engineering Services cc: Lisa M. Penna, PE, F.ASCE, QSD 11V i <J Y Dino P. D'Emilia, PE, F.ASCE, QSD Vice President, Construction Services ANDERSONTENNA ilt sll 1A •.O nom• et- 'sw ARDURRA-01 NGONZALEZ CERTIFICATE OF LIABILITY INSURANCE City of Seal Beach 211 8th Street Seal Beach, CA 90740 ACORD 25 (2016/03) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE t51_ 1988-2015 ACORD CORPORATION. All rights reserved. Th. Amon --a enA I--- — „s Amnon DATE 12/27/ 2019Y) 12127!2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER 1 CONTACT NAME: Ames & Gough PHONE FAX 8300 Greensboro Drive ! (A1C, No, Ext): (703) 827-2277 (A/C No):(703) 827-2279 j Suite RECEIVED EADDDDRIEss:admin amesgough.com McLeann,, VA 22102 INSURERS AFFORDING COVERAGE NAIC 0 INSURER A :Valle Forge Insurance Company A XV 20508 JAN 0 6 20INSURED INSURER 8: National Fire Insurance Company of Hartford A+(XV) 20478 AndersonPenna Partners, Inc. INSURER C: Continental Insurance Company A+(XV) 35289 3737 Birch Street, Suite 250 CITY CLERK INSURER D: Berkshire Hathaway Specialty Insurance Company 22276 Newport Beach, CA 92660--- -- - -- -- CITY OF SEAL HEAC INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE INSDADSL SUBRPOLICY NUMBER POLICY EFF POLICY EXPwVIDLIMITS A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1'000'000 CLAIMS -MADE FX OCCUR 6075640222 1/1/2020 1/1/2021 DAMAGE TO RENTED $ 1,000,000 PR J( Contractual Liab. MED EXP (Any oneperson) $ 15'000 0 ____ PERSONAL & ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 X POLICY JECT LOC PRODUCTS - COMP/OP AGG $ 21000'000 OTHER: B AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT$ 1,000,000 Ea accident) X BODILY INJURY Per erson $ ANY AUTO 6075640236 1/1/2020 1/1/2021 OWNED SCHEDULED AURTEOS ONLY AUTOS i BODILY INJURY Per accident $ Perr acadentDAMAGE $ AUTOS AUOTOS ONEYONLY C X UMBRELLA LIAB X OCCUREACH OCCURRENCE $ 15'000'000 AGGREGATE 15,000,000EXCESSLIABCLAIMS -MADE 6075640270 1/1/2020 1/1/2021 DEC) I X RETENTION $ 10,000 C WORKERS COMPENSATION X PER OTH- STATUTE RANDEMPLOYERS' LIABILITY YIN ANY PROPRIETOR/PARTN ER/EXECUTIVE 6075640267 1 /1 /2020 1 1 /1 /2021 1,000,000E.L. EACH ACCIDENT $ FlCER/MEMBER EXCLUDED? aMandataryinNH) N / A 1 1 1'000'000 If yes, describe under E.L. DISEASE - EA EMPLOYEE $ E.L. DISEASE - POLICY LIMIT $ 1,000P000DESCRIPTIONOFOPERATIONSbelow D Professional Liab. 47-EPP-306878-02 1/1/2020 1/1/2021 Per Claim/Aggregate 5,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (ACORD101 Additional Remarks Schedule, may be attached if more space is required) le: All Operations. The City of Seal Beach, its officers, ot{ficiaIs, employees, designated volunteers and agents serving as independent contractors in the role A City officials are included as additional insured with respect to General Liability and Auto Liability when required by written contract. General Liability is Irimary and non-contributory over any existing insurance and limited to liability arising out of the operations of the named insured and when required by vritten contract. Workers Compensation policy includes a waiver of subrogation in favor of the additional insureds where permissible by state law and when equired by written contract City of Seal Beach 211 8th Street Seal Beach, CA 90740 ACORD 25 (2016/03) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE t51_ 1988-2015 ACORD CORPORATION. All rights reserved. Th. Amon --a enA I--- — „s Amnon PROFESSIONAL SERVICES AGREEMENT For OCEAN PLACE (TRACT 17425) CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 H. AndersonPenna Partners, Inc. 3737 Birch St., STE 250 Newport Beach, CA 92660 949) 4Z8-1500 - Phone 949) 258-5053 - Fax This Professional Service Agreement ("the Agreement') is made as of I 10, li(the Effective Date"), by and between AndersonPenna Partners, Inc. ("Consultant'), a Corporation, and the City of Seal Beach ("City"), a California charter city, (collectively, the Parties"). RECITALS A. City desires certain professional services for construction management and inspection, in the manner set forth herein and more particularly described in Section 1. B. Consultant represents that it is qualified and able, by virtue of experience, training, education, and expertise, to provide City with the services required by this Agreement in a good and professional manner, and it desires to provide such services as provided herein. The City enters into this Agreement in reliance on those representations. C. City desires to retain Consultant and Consultant desires to serve City to perform those services in accordance with the terms and conditions of this Agreement. 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, (Consultant's scope of services), which are hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and/or Exhibit B, 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 2 of 15 by the City shall not operate as a release of Consultant from such standard of care and workmanship. 1.5. By executing this Agreement, Consultant represents that, to the extent required by the standard of practice, Consultant (a) has investigated and considered the scope of Services to be performed, (b) has carefully considered how the Services should be performed, and (c) understands the facilities, difficulties and restrictions attending performance of the Services under this Agreement. 1.6. 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 This term of this Agreement shall commence as of the Effective Date and shall continue for a term of 24 Months 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, attached hereto and incorporated herein by reference, for Services but in no event will the City pay more than $350,000. Any additional work authorized by the City pursuant to Section 1.6 will be compensated in accordance with the fee schedule set forth in Exhibit B. 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 all undisputed fees within 30 days of receiving Consultant's invoice. City will not withhold any applicable federal or state payroll taxes and other required taxes, or other authorized deductions from payments made to Consultant for services performed under this Agreement. 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 3of15 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. 5.3. Notice of termination shall be given in accordance with Section 7.0. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. Teresa Kelley is the Consultant's primary representative for purposes of this Agreement. Consultant may not change its representative without 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: AndersonPenna Partners, Inc. 3737 Birch St., STE 250 Newport Beach, CA 92660 Attn: Dino D'Emilia, Vice President 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 4 of 15 8.0 Personnel Consultant has or shall secure, at its own expense, all personnel required to perform all services under this Agreement. Any person who performs any of the services shall possess the qualifications, permits, and licenses required by state and local law to perform such services. 9.0 Independent Contractor 9.1. Consultant is and shall at all times remain 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 times 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. 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. 9.2. To the fullest extent permitted by law, Consultant shall defend (with legal counsel acceptable to the City, whose consent shall not be unreasonably withheld), 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. Consultant's defense and indemnification obligations under this Section are in addition to the Consultant's defense and indemnification obligations of Section 14.0. 10.0 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. 5of15 11.0 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. 12.0 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 12.0 shall survive for three (3) years after expiration, termination or final payment under this Agreement, whichever occurs later. 13.0 Insurance 13.1. 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. 13.2. 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: 6 of 15 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) Employer's Liability and Workers' Compensation Insurance; and, if required by the City, (4) 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; (3) Employer's Liability: $1,000,000 per accident and in the aggregate for bodily injury or disease and Workers' Compensation in the amount required by law; and (4) Professional Liability: 1,000,000 per claim/aggregate. 13.3. 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, 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. 13.4. 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. 13.5. 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 7of15 volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 14.0 Indemnification, Hold Harmless, and Duty to Defend Consultant and the City agree that the City, its employees, agents and officials 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 the Indemnitees. Consultant acknowledges that the CITY would not have entered into this Agreement in the absence of the commitment of the Consultant to indemnify and protect the City and the Indemnitees, as set forth in this Agreement. 14.1 Indemnity for Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, defend, hold harmless and indemnify 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 14.0), 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, attorneys and other professionals, and all costs associated therewith collectively "Claims"), whether actual, alleged or threatened, to the extent arising out of, pertaining to, or relating 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 for that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Claims 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. 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.] 14.2 Other Indemnities. Other than in the performance of 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 8 of 15 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. 14.3 Subcontractor Indemnification. Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 14.0 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 14.4 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 14.0 shall not be limited by the limits of any policies of insurance required or provided by Consultant pursuant to this Agreement. 14.4 Consultant's covenants under this Section 14.0 shall survive the expiration or termination of this Agreement. 15.0 Equal Opportunity 9of15 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. 16.0 Workers' Compensation 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. 17.0 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 C, attached hereto and incorporated by reference herein. 18.0 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. 19.0 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. 20.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 21.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 10 of 15 22.0 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. 23.0 Prohibited Interests; Conflict of Interest 23.1. 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. 23.2. 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. 23.3. 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. 24.0 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 11 of 15 losing party all of its attorneys' fees and other costs incurred in connection therewith. 25.0 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. 26.0 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 Attest: Approved as to Form: By: Craig A. Steele, City Attorney CONSULTANT PEA -WA I ea J0 r - Name' r%741 Its: CAII G > Letxg+t- 12 of 15 Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 Exhibit A - Scope of Services Plan Checking Management Approach Management of Project Team. Our project approach and proven work plan is based on a pro -active project management approach. We firmly believe in"doing it right the first time Consequently, we realize that when pursuing project success, it is critical to thoroughly define the project requirements before the work is started. APP's proposed Plan Manager, Terry Kelley, PE, has more than 30 years of management experience and has a proven record in successfully managing projects for numerous public agencies. She has great success in obtaining consensus on implementing an agency's and our managerial procedures and approaches. Our management philosophy includes the following: Understand the Proposed Project. Terry Kelley, PE has been intimately involved with the project for the last 2 years. She has been the lead reviewer on the project documents and plans. She is committed to be available to the City during the construction duration of all the City critical improvements. She has a wealth of knowledge that she will be sharing with the APPteam. The Right People for the Project. Along with Terry Kelley, PE we enclose resumes for Senior Public Warks Inspectors Eric Egurrola and Anthony Guzman, QSP, to be the City's representative in the field for inspection. As noted in the cover letter, availability of either inspector is dependent upon the City's NTP to APP to begin work on the project. Alternate inspection candidates will be proposed and deployed to the project, as approved by the City, should Eric or Anthony be committed on other assignments prior to the City's NTP. Team Communication. Our team members have excellent track records communicating with clients and stakeholders. Frequent communication and tracking of project progress is integral to our approach for his project. We will set up communication protocol with the City prior to commencing any work on the project. Our goal is to keep the City informed as construction progress. Through our FTP site that we have already established for the project, we will have daily inspection reports uploaded forthe City's review. The City will be included in all construction revision communications and our recommendations will be coordinated with the City. Terry will be responsible for outlining construction communication protocol. Schedule. The development construction schedule will be the responsibility of the developer. The developer must submit a construction schedule to the City for review and approval. APP can work with the developer to develop a realistic construction schedule that will meet the City's goals and standards. Construction Plan Checking Task Approach Construction Plan Revision Reviews. Construction plan reviews are completed for revisions to the City -approved plans. These revisions are the result of field requested changes to the plans. The revisions must be coordinated by APP's project manager, APP's inspector, the engineer of record and the City. All revisions will be reviewed with the City. APP will present our recommendations for approval and confirm that the approved recommendations are then implemented. Protocol will be established with the City, the developer and its representatives. APP'S project manager and plan check reviewer, Terry Kelley, has experience with and understands the requirement to resolve requested revisions during construction in a very timely manner. Terry currently is the lead construction revision reviewer for almost 200 acres of development including the civil portions of the City of Lake forests S60 -million Civic Center campus. Scheduling and Fee Control. APP has estimated that the entire project will take approximately nine months. This estimate does not include any unforeseen issues or delays in the field on the part of the developer's construction forces. Terry has been successful in coordinating and completing timely construction reviews. She has a track record of obtaining consensus 11 P a g e ANDEP,SON•PENNA Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 between all parties involved in plan revisions. Following the construction communication protocol established for the project, Terry will outline items of submittal required for revision requests which will aid in facilitating timely reviews. APP has provided an estimate of fees for the project construction management and plan -checking revisions based on the estimated project duration noted above. Meetings. Terry will attend construction meetings as necessary to review the project site progress and discuss proposed revisions. She will also attend periodic site walks with Dana Hutchins, APP's senior public works inspector, to review progress. She will be available to review any construction issues with Dana and the City. Electronic Submittals. APP will maintain its FTP site established for the Ocean Place project to coordinate all construction plan checking of revisions. We have successfully used the FTP site to receive project submittals from the Fuscoe and return to them our comments. The City has access to the FTP site and can upload and download files. Files created and saved in Bluebeam Revu®, which APP utilizes to provide clear, electronic plan check comments, can be opened by anyone with Adobe Acrobat* software. Having access to construction revision submittals electronically helps expedite reviews and perform quality control checking. Construction Inspection Approach APP will serve as the Citys representative and liaison with the City, as well as, the contractor during construction of the Ocean Place project. Prior to the pre -construction meeting, APP will review and be knowledgeable about the contract documents and the existing site and conditions. Preconstruction Conference. APP inspector will participate in the pre -construction meeting organized by the contractor and developer. Safe Conditions. APP will monitor project work and adjacent areas for unsafe conditions, promptly require corrective measures be addressed by the contractor in compliance with the Contractor's submitted safety plan, OSHA requirements, City's standards and contract documents and report such unsafe conditions, and corrective measures taken, to the City. One of the most pervasive job hazards across all projects is construction adjacent to live traffic lanes. APP inspectors are very familiar with monitoring and enforcing proper traffic controls per the WATCH Handbook, MUTCD and/or project -specific traffic control, traffic handling, detour plans. Inspectors drive and/or walk the project limits at the start, during and before leaving the site each day to monitor proper, and/or require corrections to the required traffic control measures. Quality Assurance. APP will enforce that a quality product, in conformance with the City's standards and approved project documents, will be constructed. APP will perform and/or coordinate OA/OC activities daily and review activities as they happen, to make sure that OA/OC procedures are followed and deficiencies are resolved in a timely and efficient manner. APP's inspector will be on site during the normal working hours and when critical activities require verifying construction progress and that all work conforms to approved project documents. The inspector will monitor testing services, track documentation and review testing results. The inspector will also review test reports submitted by others to substantiate compliance and ensure that certificates of compliance or source release tags are furnished by the contractor, along with the applicable delivered materials at the project site. When necessary, corrective measures will be implemented and re-inspected/retested to verify acceptable completion. APP'S inspector will reject work that does not conform to the requirements of the contract documents and will promptly report unacceptable work to the City and contractor. Rejected work will be thoroughly documented, photographed and tracked until repaired or replaced to the satisfaction of the City. 21P a g e I ANDERSON PENNA Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 11425 _ Materials and Workmanship. APP inspectors will recommend approval of materials and workmanship that meet the project -approved document. This will be done in coordination with the APP's project manager, the engineer of record, architect, fire inspector, deputy inspector, or other authorized representative or regulatory authorities having jurisdiction. Daily Construction Observation Reports. APP's inspector will compile daily observation reports documenting construction activities, field problems, disputes or claims, resolutions of issues and directions given to the contractor. Completed daily reports will be uploaded to the APP FTP site weekly. Photographs. Inspectors prepare and maintain an electronic photo journal documenting the construction progress. Photos will be taken before construction begins, during construction and upon completion of the project and uploaded to the FTP site on a weekly basis. Submittal Processing. APP's inspector will assist with review of contractor submittals, as requested by the City, for completeness and general conformance with the approved project documents. The inspector will compare approved submittals with materials delivered to the project to confirm the proper products are incorporated into the constructed product. Revisions. APP's inspector will review and coordinate with Project Manager Terry Kelley on all requested revisions to the approved project documents. Our inspectors will work closely with our project manager to ensure that the approved project documents are adhered to throughout construction of the project Problems and Solutions. APP's proactive approach serves to anticipate and expeditiously resolve field problems. Our team is well-trained in problem solving. Al I issues are processed with a sense of urgency by APP's project manager, and presented to the City with suggested alternatives, potential budget and schedule impacts and recommended solutions. The inspection team will quickly coordinate resolutions of field problems, in the manner which suits the best interests of the project and the City. APP will effectively and expeditiously communicate with Project Manager Terry Kelley to identify conflicts construction problems, coordination issues and facilitate the needed action and response to requested revisions. Document Tracking System. Complete and current project files shall be available in the field and on the FTP site. The APP project controls system uses a detailed indexing system for all project hard files. APP has already developed customized forms, reports database structure, and work breakdown structure, well suited for typical public works projects. This system will be adapted to the specific needs of the project, to monitor, track and control the project. This detailed tracking system will enable us to provide an accurate assessment of the progress to the City with recommendations to maintain or improve adherence to the approved project schedule. Schedule Review. The development construction schedule will be the responsibility of the developer. The developer must submit a construction schedule to the City for review and approval. APP can work with the developer to develop a realistic construction schedule that will meet the City's goals and standards. APP inspectors are very familiar with mainstream scheduling software such as Primavera P6 and Microsoft Project. The APP inspectorwill assist the City in reviewing the baseline construction schedule, including activity sequences and duration, schedule of submittals and schedule of delivery for products with long lead times. The inspection team will evaluate the baseline project schedule for the following: Consistency with the contract schedule ((ompletionwithin the contract time) Accurate start dates, completion dates, other dates detailed in the contract Any impacts of weather and change orders Sufficient detail —including submittal process and procurement requirements Sequence of construction and correct schedule logic Identification of the critical path and project float Page \ AND/ERSOON PENNA Professional Construction Phase Plan Cheddng and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 The schedule will not be recommended for approval as the baseline until all discrepancies are resolved. Schedule Control. During the progress of construction, the APP team will compare the contractor's monthly schedule updates to the baseline schedule and any approved time extensions, note any shortcomings and monitor and track corrections by the Contractor to keep the Project Schedule on track. A four-week look ahead will be obtained from the contractor, updated weekly and presented at the weekly construction progress meetings. This tool will keep the entire team looking one-month ahead of the project and will facilitate proactive handling of project activities and issues. Construction Meetings. The inspector will be available to attend developer construction meetings. At these meetings our inspector will provide comments on observed project construction issues. The inspector will also request corrective measures concerning construction activities and will provide a timeline for expected corrections. Written Instruction. APP will Issue written instructions to contractor regarding routine matters and/or follow-up of verbal instructions as necessary to properly document project issues. Plans, Specs and As-Builts. APP inspectors periodically review the Contractor's as -built updates on the approved job plan set, identify missing items and require the Contractor to keep as -built records up to date throughout the project. APP inspectors keep their own set of as -built plans which will note the location of subsurface utilities encountered and / or installed, identify where any design orfield revisions were required. At the end of the project the final as -built plans are submitted the City. Delivery Close-out Documents. APP's inspector will enforce the developer's contractor to submit well -coordinated operations and maintenance manuals, warrantees & guarantees, bonds, extra stock and/or other items required by the City. Pre -Final Inspection. The Inspector will coordinate with APP's project manager, appropriate project stakeholders, perform the final job walk and prepare the punchlist (deficiency list), The inspector will coordinate and observe completion of required corrections. Final Inspection. Satisfactory completion of all pun chlist items is verified before the inspector signs the permit. APP is noted for our attention to detail. Not only have we excelled at closing out our own projects, but we have been requested to and successfully closed out problem client projects where our services were not initially utilized. Upon completion of the punchlist and final acceptance by all project stakeholders, APP'S inspector and project manager will make recommendation to City for release of bonds. Project Schedule APP estimates that it will take approximately nine months to complete this project. This estimate assumes that the project's on-site and off-site improvements will be constructed concurrently and there are no unforeseen construction issues. However, the City is aware that the project is situated on the former site of an abandoned steam -generating plant and is within Coastal Commission jurisdiction. These two factors may introduce construction issues that prolong the construction schedule. aqe ANDERSON • PENNA Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 Exhibit B - Estimated Fee The following fee is based upon Exhibit A. It should be noted that the final cost is dependent upon the developer's timely execution of the project. The estimated fee is a time and materials estimate based upon the developers proposed schedule. The estimate is also based upon full time management for the duration of the developers schedule. APP understands that the development will provide public infrastructure that will become a permanent City maintenance responsibility, therefore, it is critical that full time inspection of those elements be provided. The final cost of these services will be dependent on the actual time required by the developer. Notes: The above hourly rates include wages, fringe and general and administrative overhead and fee, as well as typical supplies, tools and equipment required to perform services. The following minimum callout applies to Inspection staff, in accordance with Industrial Welfare Commission Order No. 16-2001: Cancellation of 8 hours scheduled inspection after inspector's arrival on site: 4 -hour minimum Cancellation of 4 hours scheduled inspection after inspector's arrival on site: 2 -hour minimum This is a Prevailing Wage Project. Prevailing Wage Rates are subject to increases pursuant to the State of California's Department of Industrial Relations Wage Rate Determinations, assumed at $2.30 per hour, plus associated overhead and profit, per annum. The rate included above cover the period through June 30, 2019. Inspection Overtime: No weekday, Saturday, holiday or Sunday work is assumed or included. Should any weekday or Saturday overtime inspection be required, it is charged at 1.4 times the rate shown. For Sundays and holidays inspection billing, rates are 1.80 times the above rate, upon the City's prior written approval therefore. Contracts for Public Works Inspection: For contracts involving public works inspection services, APP requires the awarding public agency to complete DI R form PWC -100 solely for AndersonPenna Partners, Inc. as the Prime Contractor specific to the awarded contract name and amount. Fees for subconsultant services: Billed at actual cost plus 15 percent (15%) to cover overhead and administration. Reimbursable Expenses: Ordinary identifiable non -salary costs that are directly attributable to the project, such as reproduction, regular vehicular travel costs, overnight postage / couriers, etc., are included in the fee estimated above. Extraordinary expenses, such as oversized and/or color reproduction costs, site facility hard phone line and/or intemet service 11Page a ANDERSON-PENNA Professional Construction Phase Plan Checking and Inspection Services City of Seal Beach for the Ocean Place Development, Tract 17425 charges, non -commuter project miles and/or other travel expenses to remote (over 50 miles one-way) fabrication yards / batch plants, overnight postage/ couriers, etc., are billed at actual cost plus 10 percent to cover overhead and administration. Travel charges to a casting/ fabrication yard or batch plant will include the hourly billing rate plus travel expenses as listed in the Caltrans Travel Guide (State rates). Extraordinary charges will not be billed to the Client unless specifically requested and approved by the Client in writing prior to incurring the expense. Fees for expert witness services: Charged at $300.00 per hour with a 4 -hour minimum per day. Payment Terms: A late payment finance charge at a rate of 12 percent per annum will be applied to any unpaid balance commencing 30 days after the date of original invoice. This rate schedule is effective through June, 2019. Should the Contract duration be extended beyond June 30, 2019, rates may be subject to annual and/or periodic revisions as necessary to accommodate inflationary trends, salary adjustments and the general costs of business, as mutually agreeable to the parties and approved via Contract amendment prior to implementing higher rates. NOTES/ LIMITATIONS: The projected fee is based on the number of estimated working days required for the completion of the work. The estimate may be affected by: Working time duration in excess of the duration indicated above Contractor and subcontractor's efficiency and sequencing of events Unexpected subsurface conditions Unforeseen delays beyond APP's control EXCLUSIONS TO SCOPE AND FEE: The following items are specifically excluded: Legal advice Design engineering Temporary field office facilities, equipment furniture, utilities and/or services Hazardous materials monitoring and/ortesting Acceptance and/or Independent Assurance Sampling and Testing (IAST) Services Specialized Software (otherthan MS Office Suite) and MS Project 31 P a g e ANDERSON PENNA EXHIBIT C 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 13 of 15 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 Administrative Code 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: 1 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 14 of 15 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. 15 of 15 KINGENG-01 NGONZALEZ T ACORO' CERTIFICATE OF LIABILITY INSURANCE GATE (MMIDD/YYYY) 10109/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACTNAME: PHONE FAX INC, Ne, E.g: (703) 827-2277 lac_No):(703) 827.2279Ames & Gough 8300 Greensboro Drive Suite 980 nl onlE ss: admin@amesgough.com McLean, VA 22102 INSURER(S)AFFORDING COVERAGE NAICk INSURERA:Continental Casualty Company (CNA) A, XV 20443 INSURED INSURER a: National Fire Insurance Company of Hartford A(XV) 120478 INSURER C:Continental Insurance Company A(XV) 35289 _ Anderson Penna Partners, Inc. INSURER D3737BirchStreet, Suite 250 Newport Beach, CA 92660 INSURER E INSURER F; 01/01/2019 COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECTTO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECTTOALLTHE TERMS, EXCLUSIONSAND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSRAJP—TYPE OF INSURANCE ADDS SUBRMe POLICY NUMBER POLICY EFF POLICY EXP LIMITS A X COMMERCIAL GENERAL LIABILITY1,()00,000EACHOCCURRENCE5 CI -AMS -MACE IX OCCUR 605690300$ 01/01/2018 01/01/2019 DAMAGES -(E.. n PAMAGE T(ER_oNTED nce)_ 1,,00, 00 5 IS 15'000 MED EXP(Anyone person)_ PERSONAL B ADV INJURY 1'000'000 GGEEN'L AGGREGATE LIMIT APPLIES PER L POLICY F ECLOCJT GENERAL AGGREGATE 8 2,000,000 PRODUCTS-COMPIOPAGG 2'000'000 Irl OTHER: B AUTOMOBILE LIABILITY COM LINED SINGLE LIMIT Ea acciderr 1,000,0Q0S SXANYAUTO605690299901/0112018 01/01/2019 BODILY INJURY Perep rson)_ OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accitlent) ROPERTY AMAGE Per acci17.' I$ HIRED NON-ppyWyryN ED AUTOS ONLY AUTOSONLY C X UMBRELI-ALIAS X OCCUR I EACH OCCURRENCE 10'000'000 AGGREGATE 10'000'000EXCESSL1AaCLAIMS -MADE CUE 6056903022 01/01/2018 01/01/2019 DEO X RETENTION$ 10,000 Is C WORKERS COMPENSATION ANDEMPLOYERs'UARILITY YIN ANY PROPRIETORIPARTNERIEXECUTIVE OFFICERNEMBER EXCLUOED9 N Matandory In NH) I(yes describe under DE SCRIPTIONOFOPERATIONSbel. NIA WC 656903019 01101/2018 01/01/2019 PER OTH- STATUTE ER_ 1,0()6,668 5E.L. EACH ACCIDENT_ EL DISEASE - EA EMPLOYEE 8 1'000'000 E.L. DISEASE -POLICY LIMIT 11000,006 A Professional IAEH591916165 01/01/2018 01/01/2019 Per Claim 2,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, AddlHonaI Remarks Schad ule, may be attac had If more space Is required) Professional Liability Aggregate Limit: $4,000,000 Re: All Operations. The City of Seal Beach, its officers, officials, employees, designated volunteers and agents serving as independent contractors in the role of City officials are included as additional insured with respect to General Liability and Auto Liability when required by written contract. General Liability is primary and non-contributory over any existing Insurance and limited to liability arising out of the operations of the named insured and when required by written contract. Workers Compensation policy includes a waiver of subrogation in favor of the additional insureds where permissible by state law and when required by written contract CERTIFICATF HDI DER CANCELLATION ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE CI of Seal BeachCity THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 211 8th Street Seal Beach, CA 90740 AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD CNA Workers Compensation And Employers Liability Insurance Policy Endorsement We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. This agreement shall not operate directly or indirectly to benefit anyone not named in the Schedule. Schedule Any Person or Organization on whose behalf you are required to obtain this waiver of our right to recover from under a written contract or agreement. The premium charge for the endorsement is reflected in the Schedule of Operations. All other terms and conditions of the policy remain unchanged. This endorsement, which forms a part of and is for attachment to the policy issued by the designated Insurers, takes effect on the Policy Effective Date of said policy at the hour stated in said policy, unless another effective date (the Endorsement Effective Date) is shown below, and expires concurrently with said policy unless another expiration date is shown below. Form No: WC 00 03 13 (04-1984) Policy No WC 6 56903019 Endorsement Effective Date: Endorsement Expiration Date: Policy Effective Date: 01 /0 11201 8 Endorsement No: 4; Page: i of 1 Policy Page: 62 of 98 Underwriting Company: The Continental Insurance Company, 333 S Wabash Ave, Chicago, IL 60604 Copyright 1983 National Council on Compensation Insurance. Policy: 6056902999 CNA SCA 23 500D09 Ed. 10/11) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EXTENDED COVERAGE ENDORSEMENT- BA PLUS This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM I. LIABILITY COVERAGE A. Who Is An Insured The following is added to Section II, Paragraph A.1., Who Is An Insured: 1. a. Any incorporated entity of which the Named Insured owns a majority of the voting stock on the date of inception of this Coverage Form; provided that, b. The insurance afforded by this provision A.1. does not apply to any such entity that is an insured" under any other liability "policy" providing "auto" coverage. 2. Any organization you newly acquire or form, other than a limited liability company, partnership or joint venture, and over which you maintain majority ownership interest. The insurance afforded by this provision A.2.: a. Is effective on the acquisition or formation date, and is afforded only until the end of the policy period of this Coverage Form, or the next anniversary of its inception date, whichever is earlier. b. Does not apply to: 1) "Bodily injury" or "property damage" caused by an "accident" that occurred before you acquired or formed the organization; or 2) Any such organization that is an "insured" under any other liability "policy" providing auto" coverage. 3. Any person or organization that you are obligated to provide Insurance where required by a written contract or agreement is an insured, but only with respect to legal responsibility for acts or omissions of a person for whom Liability Coverage is afforded under this policy. 4. An "employee" of yours is an "insured" while operating an "auto" hired or rented under a contract or agreement in that "employee's" name, with your permission, while performing duties related to the conduct of your business. 1. Which are no longer in force, or 2. Whose limits have been exhausted. B. Bail Bonds and Loss of Earnings Section II, Paragraphs A.2.a.(2) and A.2.a.(4) are revised as follows: 1. In a.(2), the limit for the cost of bail bonds is increased from $2,000 to $5,000, and 2. In a.(4), the limit for the loss of earnings is increased from $250 to $500 a day. C. Fellow Employee Section II, Paragraph B.5 does not apply. Such coverage as is afforded by this provision C. is excess over any other collectible insurance. II. PHYSICAL DAMAGE COVERAGE A. Towing Section III. Paragraph A.2., is revised to include Light Trucks up to 10,000 pounds G.V.W. B. Transportation Expenses Section III, Paragraph A.4.a. is revised, with respect to transportation expense incurred by you, to provide: a. $60 per day, in lieu of $20; subject to b. $1,800 maximum, in lieu of $600. C. Loss of Use Expenses Section III, Paragraph A.4.b. is revised, with respect to loss of use expenses incurred by you, to provide: a. $1,000 maximum, in lieu of $600. D. Personal Property The following is added to Section III, Paragraph A.4. c. We will pay up to $500 for loss to Personal Property which is: 1) Owned by an "insured", and 2) In or on the covered "auto." This coverage applies only in the event of a total theft of your covered "auto." Policy," as used in this provision A. Who Is An This insurance is excess over any other collectible Insured, includes those policies that were in force on insurance and no deductible applies. the Inception date of this Coverage Form but: E. Rental Reimbursement SCA 23 500D09 Copyright, CNA Corporation, 2000. Page 1 of 3 Ed. 10/11) Includes copyrighted material of the Insurance Services Office used with its permission. Policy: 6056902999 The following is added to Section III, Paragraph A.4. d. We will pay for rental reimbursement expenses incurred by you for the rental of an "auto" because of "loss" to a covered "auto." Payment applies in addition to the otherwise applicable amount of each coverage you have on a covered "auto." No deductibles apply to this coverage. 1. We will pay only for those expenses incurred during the policy period beginning 24 hours after the "loss" and ending, regardless of the policy's expiration, with the lesser of the following number of days: a) The number of days reasonably required to repair or replace the covered "auto'; or, b) 15 days. 2. Our payment is limited to the lesser of the following amounts: a) Necessary and actual expenses incurred; or, b) $25 per day subject to a maximum of 375. 3. This coverage does not apply while there are spare or reserve "autos" available to you for your operations. 4. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not already provided for under the Physical Damage Coverage Extension. F. Hired "Autos" The following is added to Section III. Paragraph A.: 5. Hired "Autos" If Physical Damage coverage is provided under this policy, and such coverage does not extend to Hired Autos, then Physical Damage coverage is extended to: a. Any covered "auto" you lease, hire, rent or borrow without a driver; and b. Any covered "auto" hired or rented by your employee" without a driver, under a contract in that individual "employee's" name, with your permission, while performing duties related to the conduct of your business. c. The most we will pay for any one "accident" or loss" is the actual cash value, cost of repair, cost of replacement or $75,000 whichever is less minus a $500 deductible for each covered auto. No deductible applies to "loss" caused by fire or lightning. SCA 23 500D09 Ed. 10/11) d. The physical damage coverage as is provided by this provision will be limited to the types of physical damage coverage(s) provided on your owned "autos." e. Such physical damage coverage for hired autos' will: 1) Include loss of use, provided it is the consequence of an "accident" for which the Named Insured is legally liable, and as a result of which a monetary loss is sustained by the leasing or rental concern. 2) Such coverage as is provided by this provision G.e.(1) will be subject to a limit of $750 per "accident." G. Airbag Coverage The following is added to Section III, Paragraph B.3. The accidental discharge of an airbag shall not be considered mechanical breakdown. H. Electronic Equipment Section III, Paragraphs B.4.c and B.4.d. are deleted and replaced by the following: C. Physical Damage Coverage on a covered auto" also applies to "loss" to any permanently installed electronic equipment including its antennas and other accessories d. A $100 per occurrence deductible applies to the coverage provided by this provision. I. Diminution In Value The following is added to Section III, Paragraph B.6 Subject to the following, the "diminution in value" exclusion does not apply to: a. Any covered "auto" of the private passenger type you lease, hire, rent or borrow, without a driver for a period of 30 days or less, while performing duties related to the conduct of your business; and b. Any covered "auto" of the private passenger type hired or rented by your "employee" without a driver for a period of 30 days or less, under a contract in that individual employee's" name, with your permission, while performing duties related to the conduct of your business. c. Such coverage as is provided by this provision is limited to a "diminution in value" loss arising directly out of accidental damage and not as a result of the failure to make repairs; faulty or incomplete maintenance or repairs; or the installation of substandard parts. SCA 23 500D09 copyright, CNA corporation, 2000. Page 2 of 3 Ed. 10/11) Includes copyrighted material of the Insurance Services Office used with its permission. Policy: 6056902999 d. The most we will pay for "loss" to a covered auto" in any one accident is the lesser of. 1) $5,000; or 2) 20% of the "auto's" actual cash value ACV) III. Drive Other Car Coverage — Executive Officers The following is added to Sections II and III: 1. Any "auto" you don't own, hire or borrow is a covered "auto" for Liability Coverage while being used by, and for Physical Damage Coverage while in the care, custody or control of, any of your executive officers," except: a. An "auto" owned by that "executive officer' or a member of that person's household; or b. An "auto" used by that "executive officer' while working in a business of selling, servicing, repairing or parking "autos." Such Liability and/or Physical Damage Coverage as is afforded by this provision will be: 1) Equal to the greatest of those coverages afforded any covered "auto" and 2) Excess over any other collectible insurance. 2. For purposes of this provision, "executive officer' means a person holding any of the officer positions created by your charter, constitution, by- laws or any other similar governing document, and, while a resident of the same household, includes that person's spouse. Such "executive officers" are "insureds" while using a covered "auto" described in this provision. IV. BUSINESS AUTO CONDITIONS A. Duties In The Event Of Accident, Claim, Suit Or Loss SCA 23 500D09 Ed. 10/11) The following is added to Section IV, Paragraph A.2.a. 4) Your "employees" may know of an "accident" or "loss." This will not mean that you have such knowledge, unless such "accident" or loss" is known to you or if you are not an individual, to any of your executive officers or partners or your insurance manager. The following is added to Section IV, Paragraph A.2.b. 6) Your "employees" may know of documents received concerning a claim or "suit." This will not mean that you have such knowledge, unless receipt of such documents is known to you or if you are not an individual, to any of your executive officers or partners or your insurance manager. B. Concealment, Misrepresentation or Fraud The following is added to Section IV, Paragraph 8.2 Your failure to disclose all hazards existing on the date of inception of this Coverage Form shall not prejudice you with respect to the coverage afforded provided such failure or omission is not intentional. C. Policy Period, Coverage Territory Section IV, Paragraphs 7.(5).(a). is revised to provide: a. 45 days of coverage in lieu of 30 days IV. DEFINITIONS Section V. Paragraph C. is deleted and replaced by the following: Bodily injury" means bodily injury, sickness or disease sustained by a person, including mental anguish, mental injury or death resulting from any of these SCA 23 500D09 Copyright, CNA Corporation, 2000. Page 3 of 3 Ed. 10/11) Includes copyrighted material of the Insurance services Office used with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement It is understood and agreed that this endorsement amends the COMMERCIAL GENERAL LIABILITY COVERAGE PART as follows. If any other endorsement attached to this policy amends any provision also amended by this endorsement, then that other endorsement controls with respect to such provision, and the changes made by this endorsement with respect to such provision do not apply. CNA74858XX (1-15) Policy No: 6056903005 Page 1 of 18 Endorsement No: a CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2016 Copynght CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. TABLE OF CONTENTS 1. Additional Insureds 2. Additional Insured - Primary And Non -Contributory To Additional Insured's Insurance 3. Additional Insured— Extended Coverage 4. Boats 5. Bodily Injury — Expanded Definition 6. Broad Knowledge of Occurrence/ Notice of Occurrence 7. Broad Named Insured 8. Contractual Liability— Railroads 9. Estates, Legal Representatives and Spouses 10. Expected Or Intended Injury — Exception for Reasonable Force 11. General Aggregate Limits of Insurance — Per Location 12. In Rem Actions 13. Incidental Health Care Malpractice Coverage 14. Joint Ventures/Partnership/Limited Liability Companies 15. Legal Liability — Damage To Premises 16. Liquor Liability 17. Medical Payments 18. Non -owned Aircraft Coverage 19. Non -owned Watercraft 20. Personal And Advertising Injury — Discrimination or Humiliation 21. Personal And Advertising Injury - Contractual Liability 22. Property Damage — Elevators 23. Retired Partners, Members, Directors And Employees 24. Supplementary Payments 25. Unintentional Failure To Disclose Hazards 26. Waiver of Subrogation — Blanket 27. Wrap -Up Extension: OCIP, CCIP or Consolidated (Wrap -Up) Insurance Programs CNA74858XX (1-15) Policy No: 6056903005 Page 1 of 18 Endorsement No: a CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2016 Copynght CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 1. ADDITIONAL INSUREDS a. WHO IS AN INSURED is amended to include as an Insured any person or organization described in paragraphs A. through 1, below whom a Named Insured is required to add as an additional insured on this Coverage Part under a written contract or written agreement, provided such contract or agreement: 1) is currently in effect or becomes effective during the term of this Coverage Part; and 2) was executed prior to: a) the bodily injury or property damage, or b) the offense that caused the personal and advertising injury, for which such additional insured seeks coverage. b. However, subject always to the terms and conditions of this policy, including the limits of insurance, the Insurer will not provide such additional insured with: 1) a higher limit of insurance than required by such contract or agreement; or 2) coverage broader than required by such contract or agreement, and in no event broader than that described by the applicable paragraph A. through I. below. Any coverage granted by this endorsement shall apply only to the extent permissible by law. A. Controlling Interest Any person or organization with a controlling interest in a Named Insured, but only with respect to such person or organization's liability for bodily injury, property damage or personal and advertising injury arising out of: 1. such person or organization's financial control of a Named Insured; or 2. premises such person or organization owns, maintains or controls while a Named Insured leases or occupies such premises; provided that the coverage granted by this paragraph does not apply to structural alterations, new construction or demolition operations performed by, on behalf of, or for such additional insured. B. Co-owner of Insured Premises A co-owner of a premises co -owned by a Named Insured and covered under this insurance but only with respect to such co -owner's liability for bodily injury, property damage or personal and advertising injury as co-owner of such premises. C. Engineers, Architects or Surveyors Engaged By You An architect, engineer or surveyor engaged by the Named Insured, but only with respect to liability for bodily injury, property damage or personal and advertising injury caused in whole or in part by the Named Insured's acts or omissions, or the acts or omissions of those acting on the Named Insured's behalf: a. in connection with the Named Insured's premises, or b. in the performance of the Named Insured's ongoing operations. But the coverage hereby granted to such additional insureds does not apply to bodily injury, property damage or personal and advertising injury arising out of the rendering of or failure to render any professional services by, on behalf of, or for the Named Insured, including but not limited to: CNA74858XX (1-15) Policy No: 6056903005 Page 2 of 18 Endorsement No: 8 CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2018 Copynght CNA All Rights Reserved. Includes copyrighted material of Insurance Services office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 1. the preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and spe ificatlons; or 2. supervisory, inspection, architectural or engineering activities. D. Lessor of Equipment Any person or organization from whom a Named Insured leases equipment, but only with respect to liability for bodily injury, property damage or personal and advertising injury caused, in whole or in part, by the Named Insured's maintenance, operation or use of such equipment, provided that the occurrence giving rise to such bodily injury, property damage or the offense giving rise to such personal and advertising injury takes place prior to the termination of such lease. E. Lessor of Land Any person or organization from whom a Named Insured leases land but only with respect to liability for bodily injury, property damage or personal and advertising injury arising out of the ownership, maintenance or use of such land, provided that the occurrence giving rise to such bodily injury, property damage or the offense giving rise to such personal and advertising injury takes place prior to the termination of such lease. The coverage granted by this paragraph does not apply to structural alterations, new construction or demolition operations performed by, on behalf of, or for such additional insured. F. Lessor of Premises An owner or lessor of premises leased to the Named Insured, or such owner or lessor's real estate manager, but only with respect to liability for bodily injury, property damage or personal and advertising injury arising out of the ownership, maintenance or use of such part of the premises leased to the Named Insured, and provided that the occurrence giving rise to such bodily injury or property damage, or the offense giving rise to such personal and advertising injury, takes place prior to the termination of such lease. The coverage granted by this paragraph does not apply to structural alterations, new construction or demolition operations performed by, on behalf of, or for such additional insured. G. Mortgagee, Assignee or Receiver A mortgagee, assignee or receiver of premises but only with respect to such mortgagee, assignee or receiver's liability for bodily injury, property damage or personal and advertising injury arising out of the Named Insured's ownership, maintenance, or use of a premises by a Named Insured. The coverage granted by this paragraph does not apply to structural alterations, new construction or demolition operations performed by, on behalf of, or for such additional insured. H. State or Governmental Agency or Subdivision or Political Subdivisions — Permits A state or governmental agency or subdivision or political subdivision that has issued a permit or authorization but only with respect to such state or governmental agency or subdivision or political subdivision's liability for bodily injury, property damage or personal and advertising injury arising out of: the following hazards in connection with premises a Named Insured owns, rents, or controls and to which this insurance applies: a. the existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoistaway openings, sidewalk vaults, street banners, or decorations and similar exposures; or b. the construction, erection, or removal of elevators, or c. the ownership, maintenance or use of any elevators covered by this insurance; or CNA74858XX (1-15) Page 3 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: a Effective Date: 01/01/2018 copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability' Extension Endorsement 2. the permitted or authorized operations performed by a Named Insured or on a Named Insured's behalf. The coverage granted by this paragraph does not apply to: a. Bodily injury, property damage or personal and advertising injury arising out of operations performed for the state or governmental agency or subdivision or political subdivision; or b. Bodily injury or property damage included within the products -completed operations hazard. With respect to this provision's requirement that additional insured status must be requested under a written contract or agreement, the Insurer will treat as a written contract any governmental permit that requires the Named Insured to add the governmental entity as an additional insured. I. Trade Show Event Lessor 1. With respect to a Named Insured's participation in a trade show event as an exhibitor, presenter or displayer, any person or organization whom the Named Insured is required to include as an additional insured, but only with respect to such person or organization's liability for bodily injury, property damage or personal and advertising injury caused by: a. the Named Insured's acts or omissions; or b. the acts or omissions of those acting on the Named Insured's behalf, in the performance of the Named Insured's ongoing operations at the trade show event premises during the trade show event. 2. The coverage granted by this paragraph does not apply to bodily injury or property damage included within the products -completed operations hazard. 2. ADDITIONAL INSURED -PRIMARY AND NON-CONTRIBUTORY TO ADDITIONAL INSURED'S INSURANCE The Other Insurance Condition in the COMMERCIAL GENERAL LIABILITY CONDITIONS Section is amended to add the following paragraph: If the Named Insured has agreed in writing in a contract or agreement that this insurance is primary and non- contributory relative to an additional insured's own insurance, then this insurance is primary, and the Insurer will not seek contribution from that other insurance. For the purpose of this Provision 2., the additional insured's own insurance means insurance on which the additional insured is a named insured. Otherwise, and notwithstanding anything to the contrary elsewhere in this Condition, the insurance provided to such person or organization is excess of any other insurance available to such person or organization. 3. ADDITIONAL INSURED— EXTENDED COVERAGE When an additional insured is added by this or any other endorsement attached to this Coverage Part, WHO IS AN INSURED is amended to make the following natural persons Insureds. If the additional Insured Is: a. An individual, then his or her spouse is an Insured, b. A partnership or joint venture, then its partners, members and their spouses are Insureds; c. A limited liability company, then its members and managers are Insureds; or J. An organization other than a partnership, joint venture or limited liability company, then its executive officers, directors and shareholders are Insureds; CNA74858XX (1-15) Page 4 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement but only with respect to locations and operations covered by the additional insured endorsement's provisions, and only with respect to their respective roles within their organizations. Please see the ESTATES, LEGAL REPRESENTATIVES, AND SPOUSES provision of this endorsement for additional coverage and restrictions applicable to spouses of natural person Insureds. 4. BOATS Under COVERAGES, Coverage A — Bodily Injury And Property Damage Liability, the paragraph entitled Exclusions is amended to add the following additional exception to the exclusion entitled Aircraft, Auto or Watercraft: This exclusion does not apply to: Any watercraft owned by the Named Insured that is less than 30 feet long while being used in the course of the Named Insured's inspection or surveying work. 5. BODILY INJURY— EXPANDED DEFINITION Under DEFINITIONS, the definition of bodily injury is deleted and replaced by the following: Bodily injury means physical injury, sickness or disease sustained by a person, including death, humiliation, shock, mental anguish or mental injury sustained by that person at any time which results as a consequence of the physical injury, sickness or disease. 6. BROAD KNOWLEDGE OF OCCURRENCE/ NOTICE OF OCCURRENCE Under CONDITIONS, the condition entitled Duties in The Event of Occurrence, Offense, Claim or Suit is amended to add the following provisions: A. BROAD KNOWLEDGE OF OCCURRENCE The Named Insured must give the Insurer or the Insurer's authorized representative notice of an occurrence, offense or claim only when the occurrence, offense or claim is known to a natural person Named Insured, to a partner, executive officer, manager or member of a Named Insured, or to an employee designated by any of the above to give such notice. B. NOTICE OF OCCURRENCE The Named Insured's rights under this Coverage Part will not be prejudiced if the Named Insured fails to give the Insurer notice of an occurrence, offense or claim and that failure is solely due to the Named Insured's reasonable belief that the bodily injury or property damage is not covered under this Coverage Part. However, the Named Insured shall give written notice of such occurrence, offense or claim to the Insurer as soon as the Named Insured is aware that this insurance may apply to such occurrence, offense or claim. 7. BROAD NAMED INSURED WHO IS AN INSURED is amended to delete its Paragraph 3. in its entirety and replace it with the following: 3. Pursuant to the limitations described in Paragraph 4. below, any organization in which a Named Insured has management control: a. on the effective date of this Coverage Part; or b. by reason of a Named Insured creating or acquiring the organization during the policy period, qualifies as a Named Insured, provided that there is no other similar liability insurance, whether primary, contributory, excess, contingent or otherwise, which provides coverage to such organization, or which would have GNA74858XX (1-15) Page 5 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 copyright CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. i CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement provided coverage but for the exhaustion of its limit, and without regard to whether its coverage is broader or narrower than that provided by this insurance. But this BROAD NAMED INSURED provision does not apply to: a) any partnership, limited liability company or joint venture; or b) any organization for which coverage is excluded by another endorsement attached to this Coverage Part. For the purpose of this provision, management control means: A. owning interests representing more than 50% of the voting, appointment or designation power for the selection of a majority of the Board of Directors of a corporation; or B. having the right, pursuant to a written trust agreement, to protect, control the use of, encumber or transfer or sell property held by a trust. 4. With respect to organizations which qualify as Named Insureds by virtue of Paragraph 3. above, this insurance does not apply to: a. bodily injury or property damage that first occurred prior to the date of management control, or that first occurs after management control ceases; nor b. personal or advertising injury caused by an offense that first occurred prior to the date of management control or that first occurs after management control ceases. 5. The insurance provided by this Coverage Part applies to Named Insureds when trading under their own names or under such other trading names or doing -business -as names (dba) as any Named Insured should choose to employ. 8. CONTRACTUAL LIABILITY— RAILROADS With respect to operations performed within 50 feet of railroad property, the definition of insured contract is replaced by the following: Insured Contract means: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while rented to a Named Insured or temporarily occupied by a Named Insured you with permission of the owner is not an insured contract; b. A sidetrack agreement, c. Any easement or license agreement; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to the Named Insured's business (including an indemnification of a municipality in connection with work performed for a municipality) under which the Named Insured assumes the tort liability of another party to pay for bodily injury or property damage to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: CNA74858XX (1-15) Page 6 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 1) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: a) Preparing, approving or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; 2) Under which the Insured, if an architect, engineer or surveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional services, including those listed in (1) above and supervisory, inspection, architectural or engineering activities. 9. ESTATES, LEGAL REPRESENTATIVES, AND SPOUSES The estates, executors, heirs, legal representatives, administrators, trustees, beneficiaries and spouses of any natural person Insured or living trust shall also be insured under this policy; provided, however, coverage is afforded to such estates, executors, heirs, legal representatives, administrators, trustees, beneficiaries and spouses only for claims arising solely out of their capacity or status as such and, in the case of a spouse, where such claim seeks damages from marital community property, jointly held property or property transferred from such natural person Insured to such spouse. No coverage is provided for any act, error or omission of an estate, heir, legal representative, or spouse outside the scope of such person's capacity or status as such, provided, however, that the spouse of a natural person Named Insured, and the spouses of members or partners of joint venture or partnership Named Insureds are Insureds with respect to such spouses' acts, errors or omissions in the conduct of the Named Insured's business. 10. EXPECTED OR INTENDED INJURY — EXCEPTION FOR REASONABLE FORCE Under COVERAGES, Coverage A — Bodily Injury And Property Damage Liability, the paragraph entitled Exclusions is amended to delete the exclusion entitled Expected or Intended Injury and replace it with the following: This insurance does not apply to: Expected or Intended Injury Bodily injury or property damage expected or intended from the standpoint of the Insured. This exclusion does not apply to bodily injury or property damage resulting from the use of reasonable force to protect persons or property. 11. GENERAL AGGREGATE LIMITS OF INSURANCE - PER LOCATION A. A separate Location General Aggregate Limit, equal to the amount of the General Aggregate Limit, is the most the Insurer will pay for the sum of: 1. All damages under Coverage A, except damages because of bodily injury or property damage included in the products -completed operations hazard; and 2. All medical expenses under Coverage C, that arise from occurrences or accidents which can be attributed solely to ongoing operations at that location. Such payments shall not reduce the General Aggregate Limit shown in the Declarations, nor the Location General Aggregate Limit of any other location. B. All: 1. Damages under Coverage B, regardless of the number of locations involved; CNA74858XX (1-15) Page 7 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 copyright CNA AII Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 2. Damages under Coverage A, caused by occurrences which cannot be attributed solely to ongoing operations at a single location, except damages because of bodily injury or property damage included in the products -completed operations hazard, and 3. Medical expenses under Coverage C caused by accidents which cannot be attributed solely to ongoing operations at a single location, will reduce the General Aggregate Limit shown in the Declarations. C. For the purpose of this GENERAL AGGREGATE LIMITS OF INSURANCE - PER LOCATION Provision, location" means: 1. a premises the Named Insured owns or rents, or 2, a premises not owned or rented by any Named Insured at which the Named Insured is performing operations pursuant to a contract or written agreement. If operations at such a location have been discontinued and then restarted, or if the authorized parties deviate from plans, blueprints, designs, specifications or timetables, the location will still be deemed to be the same location. For the purpose of determining the applicable aggregate limit of insurance, premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right-of-way of a railroad shall be considered a single location. D. The limits shown in the Declarations for Each Occurrence, for Damage To Premises Rented To You and for Medical Expense continue to apply, but will be subject to either the Location General Aggregate Limit or the General Aggregate Limit, depending on whether the occurrence can be attributed solely to ongoing operations at a particular location. E. When coverage for liability arising out of the products -completed operations hazard is provided, any payments for damages because of bodily injury or property damage included in the products -completed operations hazard, regardless of the number of locations involved, will reduce the Products -Completed Operations Aggregate Limit shown in the Declarations. F. The provisions of LIMITS OF INSURANCE not otherwise modified by this GENERAL AGGREGATE LIMITS OF INSURANCE - PER LOCATION Provision shall continue to apply as stipulated. 12. IN REM ACTIONS A quasi in rem action against any vessel owned or operated by or for the Named Insured, or chartered by or for the Named Insured, will be treated in the same manner as though the action were in personam against the Named Insured. 13. INCIDENTAL HEALTH CARE MALPRACTICE COVERAGE Solely with respect to bodily injury that arises out of a health care incident: A. Under COVERAGES, Coverage A — Bodily Injury And Property Damage Liability, the Insuring Agreement is amended to replace Paragraphs 1.ti and 1.b.(2) with the following: b. This insurance applies to bodily injury provided that the professional health care services are incidental to the Named Insured's primary business purpose, and only if: 1) such bodily injury is caused by an occurrence that takes place in the coverage territory. 2) the bodily injury first occurs during the policy period. All bodily injury arising from an occurrence will be deemed to have occurred at the time of the first act, error, or omission that is part of the occurrence, and CNA74858XX (1-15) Policy No: 6056903005 Page 8 of 18 Endorsement No: a CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2018 copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement B. Under COVERAGES, Coverage A — Bodily Injury And Property Damage Liability, the paragraph entitled Exclusions is amended to: i. add the following to the Employers Liability exclusion: This exclusion applies only if the bodily injury arising from a health care incident is covered by other liability insurance available to the Insured (or which would have been available but for exhaustion of its limits). ii. delete the exclusion entitled Contractual Liability and replace it with the following: This insurance does not apply to: Contractual Liability the Insured's actual or alleged liability under any oral or written contract or agreement, including but not limited to express warranties or guarantees. iii. to add the following additional exclusions: This insurance does not apply to: Discrimination any actual or alleged discrimination, humiliation or harassment, including but not be limited to claims based on an individual's race, creed, color, age, gender, national origin, religion, disability, marital status or sexual orientation. Dishonesty or Crime Any actual or alleged dishonest, criminal or malicious act, error or omission. Medicare/Medicaid Fraud any actual or alleged violation of law with respect to Medicare, Medicaid, Tricare or any similar federal, state or local governmental program. Services Excluded by Endorsement Any health care incident for which coverage is excluded by endorsement. C. DEFINITIONS is amended to: L add the following definitions: Health care incident means an act, error or omission by the Named Insured's employees or volunteer workers in the rendering of: a. professional health care services on behalf of the Named Insured or b. Good Samaritan services rendered in an emergency and for which no payment is demanded or received. Professional health care services means any health care services or the related furnishing of food, beverages, medical supplies or appliances by the following providers in their capacity as such but solely to the extent they are duly licensed as required: a. Physician. CNA74858XX (1-15) Policy No: 6056903005 Page 9 of 18 Endorsement No: a CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copynghted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement b. Nurse; c. Nurse practitioner; d. Emergency medical technician; e. Paramedic; f. Dentist; g. Physical therapist; h. Psychologist, I. Speech therapist, j. Other allied health professional; or Professional health care services does not include any services rendered in connection with human clinical trials or product testing. ii. delete the definition of occurrence and replace it with the following: Occurrence means a health care incident. All acts, errors or omissions that are logically connected by any common fact, circumstance, situation, transaction, event, advice or decision will be considered to constitute a single occurrence; iii. amend the definition of Insured to: a. add the following: the Named Insured's employees are Insureds with respect to: 1) bodily injury to a co -employee while in the course of the co -employee's employment by the Named Insured or while performing duties related to the conduct of the Named Insured's business; and 2) bodily injury to a volunteer worker while performing duties related to the conduct of the Named Insured's business; when such bodily injury arises out of a health care incident. the Named Insured's volunteer workers are Insureds with respect to: 1) bodily injury to a co -volunteer worker while performing duties related to the conduct of the Named Insured's business; and 2) bodily injury to an employee while in the course of the employee's employment by the Named Insured or while performing duties related to the conduct of the Named Insured's business; when such bodily injury arises out of a health care incident. b. delete Subparagraphs (a), (b), (c) and (d) of Paragraph 2.a.(1) of WHO IS AN INSURED. D. The Other Insurance condition is amended to delete Paragraph b.(1) in its entirety and replace it with the following: Other Insurance CNA74858XX (1-15) Page 10 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA All Rights Reserved. Includes copyrighted material of Insurance Services ice, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement b. Excess Insurance 1) To the extent this insurance applies, it is excess over any other insurance, self insurance or risk transfer instrument, whether primary, excess, contingent or on any other basis, except for insurance purchased specifically by the Named Insured to be excess of this coverage. 14. JOINT VENTURES / PARTNERSHIP / LIMITED LIABILITY COMPANIES A. Past Joint Ventures, Partnerships, Limited Liability Companies The following is added to WHO IS AN INSURED: If the Named Insured was a joint venturer, partner, or member of a limited liability company and such joint venture, partnership or limited liability company terminated prior to or during the policy period, such Named Insured is an Insured with respect to its interest in such joint venture, partnership or limited liability company but only to the extent that: a. any offense giving rise to personal and advertising injury occurred prior to such termination date, and the personal and advertising injury arising out of such offense, first occurred after such termination date; b. the bodily injury or property damage first occurred after such termination date, and c. there is no other valid and collectible insurance purchased specifically to insure the partnership, joint venture or limited liability company. If the joint venture, partnership or limited liability company is or was insured under a consolidated (wrap-up) insurance program, then such insurance will always be considered valid and collectible for the purpose of paragraph c. above. But this provision will not serve to exclude bodily injury, property damage or personal and advertising injury that would otherwise be covered under the Architects, Engineers And Surveyors General Liability Extension Endorsement provision entitled WRAP-UP EXTENSION: OCIP, CCIP, OR CONSOLIDATED (WRAP-UP) INSURANCE PROGRAMS. Please see that provision for the definition of consolidated (wrap-up) insurance program. B. Participation In Current Professional Joint Ventures The following is added to WHO IS AN INSURED: The Named Insured is also an Insured for participation in a current joint venture that is not named on the Declarations, but only if such joint venture meets all of the following criteria: a. Each and every one of the Named Insured's co -venturers are architectural, engineering or surveying firms only; and b. There is no other valid and collectible insurance purchased specifically to insure the joint venture. However, the Named Insured is an Insured only for the conduct of such Named Insured's business within such a joint venture. The Named Insured is not insured for liability arising out of the acts or omissions of other co - venturers, nor of their partners, members or employees. C. WHO IS AN INSURED is amended to delete its last paragraph and replace it with the following: Except as provided under this Architects, Engineers And Surveyors General Liability Extension Endorsement or by the attachment of another endorsement (if any), no person or organization is an Insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. CNA74858XX (1-15) Page 11 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6OS6903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copyrighted material of Insurance services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 15. LEGAL LIABILITY — DAMAGE TO PREMISES / ALIENATED PREMISES / PROPERTY IN THE NAMED INSURED'S CARE, CUSTODY OR CONTROL A. Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended to delete exclusion j. Damage to Property in its entirety and replace it with the following: This insurance does not apply to: j. Damage to Property Property damage to: 1) Property the Named Insured owns, rents, or occupies, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; 2) Premises the Named Insured sells, gives away or abandons, if the property damage arises out of any part of those premises; 3) Property loaned to the Named Insured; 4) Personal property in the care, custody or control of the Insured; 5) That particular part of real property on which the Named Insured or any contractors or subcontractors working directly or indirectly on the Named Insured's behalf are performing operations, if the property damage arises out of those operations, or 6) That particular part of any property that must be restored, repaired or replaced because your work was incorrectly performed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to property damage (other than damage by fire) to premises rented to the Named Insured or temporarily occupied by the Named Insured with the permission of the owner, nor to the contents of premises rented to the Named Insured for a period of 7 or fewer consecutive days. A separate limit of insurance applies to Damage To Premises Rented To You as described in LIMITS OF INSURANCE. Paragraph (2) of this exclusion does not apply if the premises are your work. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to property damage included in the products -completed operations hazard. Paragraphs (3) and (4) of this exclusion do not apply to property damage to: i, tools, or equipment the Named Insured borrows from others, nor ii. other personal property of others in the Named Insured's care, custody or control while being used in the Named Insured's operations away from any Named Insured's premises. However, the coverage granted by this exception to Paragraphs (3) and (4) does not apply to: a. property at a job site awaiting or during such property's installation, fabrication, or erection, b. property that is mobile equipment leased by an Insured; CNA74858XX (1-15) Policy No: 6056903005 Page 12 of 18 Endorsement No: e CONTINENTAL CASUALTY COMPANY Effective Date: 01/01/2018 Copyright CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement c. property that is an auto, aircraft or watercraft; d. property in transit; or e. any portion of property damage for which the Insured has available other valid and collectible insurance, or would have such insurance but for exhaustion of its limits, or but for application of one of its exclusions. A separate limit of insurance and deductible apply to such property of others. See LIMITS OF INSURANCE as amended below. B. Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended to delete its last paragraph and replace it with the following: Exclusions c. through n. do not apply to damage by fire to premises while rented to a Named Insured or temporarily occupied by a Named Insured with permission of the owner, nor to damage to the contents of premises rented to a Named Insured for a period of 7 or fewer consecutive days. A separate limit of insurance applies to this coverage as described in LIMITS OF INSURANCE. C. The following paragraph is added to LIMITS OF INSURANCE: Subject to 5. above, $25,000 is the most the Insurer will pay under Coverage A for damages arising out of any one occurrence because of the sum of all property damage to borrowed tools or equipment, and to other personal property of others in the Named Insured's care, custody or control, while being used in the Named Insured's operations away from any Named Insured's premises. The Insurer's obligation to pay such property damage does not apply until the amount of such property damage exceeds $1,000. The Insurer has the right but not the duty to pay any portion of this $1,000 in order to effect settlement. If the Insurer exercises that right, the Named Insured will promptly reimburse the Insurer for any such amount. D. Paragraph 6., Damage To Premises Rented To You Limit, of LIMITS OF INSURANCE is deleted and replaced by the following: 6. Subject to Paragraph 5. above, (the Each Occurrence Limit), the Damage To Premises Rented To You Limit is the most the Insurer will pay under Coverage A for damages because of property damage to any one premises while rented to the Named Insured or temporarily occupied by the Named Insured with the permission of the owner, including contents of such premises rented to the Named Insured for a period of 7 or fewer consecutive days. The Damage To Premises Rented To You Limit is the greater of: a. $500,000; or b. The Damage To Premises Rented To You Limit shown in the Declarations. E. Paragraph 4.b.(1)(a)(ii) of the Other Insurance Condition is deleted and replaced by the following: ii) That is property insurance for premises rented to the Named Insured, for premises temporarily occupied by the Named Insured with the permission of the owner; or for personal property of others in the Named Insured's care, custody or control; 16. LIQUOR LIABILITY Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended to delete the exclusion entitled Liquor Liability. This LIQUOR LIABILITY Provision does not apply to any person or organization who otherwise qualifies as an additional insured on this Coverage Part. CNA74858XX (1-15) Page 13 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 17. MEDICAL PAYMENTS A. LIMITS OF INSURANCE is amended to delete Paragraph 7. (the Medical Expense Limit) and replace it with the following: 7. Subject to Paragraph 5. above (the Each Occurrence Limit), the Medical Expense Limit is the most the Insurer will pay under Coverage C for all medical expenses because of bodily injury sustained by any one person. The Medical Expense Limit is the greater of: 1) $15,000 unless a different amount is shown here: $N,NNN,NNN,NNN; or 2) the amount shown in the Declarations for Medical Expense Limit. B. Under COVERAGES, the Insuring Agreement of Coverage C — Medical Payments is amended to replace Paragraph 1.a.(3)(b) with the following: b) The expenses are incurred and reported to the Insurer within three years of the date of the accident; and 18. NON -OWNED AIRCRAFT Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended as follows: The exclusion entitled Aircraft, Auto or Watercraft is amended to add the following: This exclusion does not apply to an aircraft not owned by any Named Insured, provided that: 1. the pilot in command holds a currently effective certificate issued by the duly constituted authority of the United Stales of America or Canada, designating that person as a commercial or airline transport pilot; 2. the aircraft is rented with a trained, paid crew to the Named Insured; and 3. the aircraft is not being used to carry persons or property for a charge. 19. NON -OWNED WATERCRAFT Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended to delete subparagraph (2) of the exclusion entitled Aircraft, Auto or Watercraft, and replace it with the following. This exclusion does not apply to: 2) a watercraft that is not owned by any Named Insured, provided the watercraft is: a) less than 75 feet long, and b) not being used to carry persons or property for a charge. 20. PERSONAL AND ADVERTISING INJURY—DISCRIMINATION OR HUMILIATION A. Under DEFINITIONS, the definition of personal and advertising injury is amended to add the following tort: Discrimination or humiliation that results in injury to the feelings or reputation of a natural person. B. Under COVERAGES, Coverage B — Personal and Advertising Injury Liability, the paragraph entitled Exclusions is amended to: 1. delete the Exclusion entitled Knowing Violation Of Rights Of Another and replace it with the following: CNA74858XX (1-15) Page 14 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJ Rights Reserved. Indudes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement This insurance does not apply to: Knowing Violation of Rights of Another Personal and advertising injury caused by or at the direction of the Insured with the knowledge that the act would violate the rights of another and would inflict personal and advertising injury. This exclusion shall not apply to discrimination or humiliation that results in injury to the feelings or reputation of a natural person, but only if such discrimination or humiliation is not done intentionally by or at the direction of. a) the Named Insured; or b) any executive officer, director, stockholder, partner, member or manager (if the Named Insured is a limited liability company) of the Named Insured. 2. add the following exclusions: This insurance does not apply to: Employment Related Discrimination discrimination or humiliation directly or indirectly related to the employment, prospective employment, past employment or termination of employment of any person by any Insured. Premises Related Discrimination discrimination or humiliation arising out of the sale, rental, lease or sub -lease or prospective sale, rental, lease or sub -lease of any room, dwelling or premises by or at the direction of any Insured. Notwithstanding the above, there is no coverage for fines or penalties levied or imposed by a governmental entity because of discrimination. The coverage provided by this PERSONAL AND ADVERTISING INJURY —DISCRIMINATION OR HUMILIATION Provision does not apply to any person or organization whose status as an Insured derives solely from Provision 1. ADDITIONAL INSURED of this endorsement; or attachment of an additional insured endorsement to this Coverage Part. 21. PERSONAL AND ADVERTISING INJURY - CONTRACTUAL LIABILITY A. Under COVERAGES, Coverage B —Personal and Advertising Injury Liability, the paragraph entitled Exclusions is amended to delete the exclusion entitled Contractual Liability. B. Solely for the purpose of the coverage provided by this PERSONAL AND ADVERTISING INJURY - LIMITED CONTRACTUAL LIABILITY provision, the following changes are made to the section entitled SUPPLEMENTARY PAYMENTS — COVERAGES A AND B: 1. Paragraph 2.d. is replaced by the following: d. The allegations in the suit and the information the Insurer knows about the offense alleged in such suit are such that no conflict appears to exist between the interests of the Insured and the interests of the indemnitee; 2. The first unnumbered paragraph beneath Paragraph 2.f.(2)(b) is deleted and replaced by the following: So long as the above conditions are met, attorney's fees incurred by the Insurer in the defense of that indemnitee, necessary litigation expenses incurred by the Insurer, and necessary litigation expenses incurred CNA74858XX (1-15) Page 15 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copyright CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement by the indemnitee at the Insurer's request will be paid as defense costs. Such payments will not be deemed to be damages for personal and advertising injury and will not reduce the limits of insurance. C. This PERSONAL AND ADVERTISING INJURY - LIMITED CONTRACTUAL LIABILITY Provision does not apply if Coverage B —Personal and Advertising Injury Liability is excluded by another endorsement attached to this Coverage Part. This PERSONAL AND ADVERTISING INJURY - CONTRACTUAL LIABILITY Provision does not apply to any person or organization who otherwise qualifies as an additional insured on this Coverage Part. 22. PROPERTY DAMAGE —ELEVATORS A. Under COVERAGES, Coverage A — Bodily Injury and Property Damage Liability, the paragraph entitled Exclusions is amended such that the Damage to Your Product Exclusion and subparagraphs (3), (4) and (6) of the Damage to Property Exclusion do not apply to property damage that results from the use of elevators. B. Solely for the purpose of the coverage provided by this PROPERTY DAMAGE — ELEVATORS Provision, the Other Insurance conditions is amended to add the following paragraph: This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis that is Property insurance covering property of others damaged from the use of elevators. 23. RETIRED PARTNERS, MEMBERS, DIRECTORS AND EMPLOYEES WHO IS INSURED is amended to include as Insureds natural persons who are retired partners, members, directors or employees, but only for bodily injury, property damage or personal and advertising injury that results from services performed for the Named Insured under the Named Insured's direct supervision. All limitations that apply to employees and volunteer workers also apply to anyone qualifying as an Insured under this Provision. 24. SUPPLEMENTARY PAYMENTS The section entitled SUPPLEMENTARY PAYMENTS — COVERAGES A AND B is amended as follows: A. Paragraph 1.b. is amended to delete the $250 limit shown for the cost of bail bonds and replace it with a $5,000. limit; and B. Paragraph 1.d. is amended to delete the limit of $250 shown for daily loss of earnings and replace it with a 1,000. limit. 25. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS If the Named Insured unintentionally fails to disclose all existing hazards at the inception date of the Named Insured's Coverage Part, the Insurer will not deny coverage under this Coverage Part because of such failure. 26. WAIVER OF SUBROGATION - BLANKET Under CONDITIONS, the condition entitled Transfer Of Rights Of Recovery Against Others To Us is amended to add the following: The Insurer waives any right of recovery the Insurer may have against any person or organization because of payments the Insurer makes for injury or damage arising out of: 1. the Named Insured's ongoing operations; or 2. your work included in the products -completed operations hazard. However, this waiver applies only when the Named Insured has agreed in writing to waive such rights of recovery in a written contract or written agreement, and only if such contract or agreement: CNA74858XX (1-15) Page 16 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services ice, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement 1. is in effect or becomes effective during the term of this Coverage Part; and 2. was executed prior to the bodily injury, property damage or personal and advertising injury giving rise to the claim. 27. WRAP-UP EXTENSION: OCIP, CCIP, OR CONSOLIDATED (WRAP-UP) INSURANCE PROGRAMS Note: The following provision does not apply to any public construction project in the state of Oklahoma, nor to any construction project in the state of Alaska, that is not permitted to be insured under a consolidated (wrap-up) insurance program by applicable state statute or regulation. If the endorsement EXCLUSION — CONSTRUCTION WRAP-UP is attached to this policy, or another exclusionary endorsement pertaining to Owner Controlled Insurance Programs (O.C.I.P.) or Contractor Controlled Insurance Programs (C.C.I.P.) is attached, then the following changes apply: A. The following wording is added to the above -referenced endorsement: With respect to a consolidated (wrap-up) insurance program project in which the Named Insured is or was involved, this exclusion does not apply to those sums the Named Insured become legally obligated to pay as damages because of: 1. Bodily injury, property damage, or personal or advertising injury that occurs during the Named Insured's ongoing operations at the project, or during such operations of anyone acting on the Named Insured's behalf: nor 2. Bodily injury or property damage included within the products -completed operations hazard that arises out of those portions of the project that are not residential structures. B. Condition 4. Other Insurance is amended to add the following subparagraph 4.b.(1)(c): This insurance is excess over: c) Any of the other insurance whether primary, excess, contingent or any other basis that is insurance available to the Named Insured as a result of the Named Insured being a participant in a consolidated (wrap-up) insurance program, but only as respects the Named Insured's involvement in that consolidated (wrap-up) insurance program. C. DEFINITIONS is amended to add the following definitions: Consolidated (wrap-up) insurance program means a construction, erection or demolition project for which the prime contractor/project manager or owner of the construction project has secured general liability insurance covering some or all of the contractors or subcontractors involved in the project, such as an Owner Controlled Insurance Program (O.C.I.P.) or Contractor Controlled Insurance Program (C.C.I.P.). Residential structure means any structure where 30% or more of the square foot area is used or is intended to be used for human residency, including but not limited to: 1. single or multifamily housing, apartments, condominiums, townhouses, co-operatives or planned unit developments; and 2, the common areas and structures appurtenant to the structures in paragraph 1. (including pools, hot tubs, detached garages, guest houses or any similar structures). However, when there is no individual ownership of units, residential structure does not include military housing, college/university housing or dormitories, long term care facilities, hotels or motels. Residential structure also does not include hospitals or prisons. CNA74858XX (1-15) Page 17 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copyright CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission. CNA CNA PARAMOUNT Architects, Engineers and Surveyors General Liability Extension Endorsement This WRAP-UP EXTENSION: OCIP, CCIP, OR CONSOLIDATED (WRAP-UP) INSURANCE PROGRAMS Provision does not apply to any person or organization who otherwise qualifies as an additional insured on this Coverage Part. All other terms and conditions of the Policy remain unchanged. This endorsement, which forms a part of and is for attachment to the Policy issued by the designated Insurers, takes effect on the effective date of said Policy at the hour stated in said Policy, unless another effective date is shown below, and expires concurrently with said Policy. Page 18 of 18 CONTINENTAL CASUALTY COMPANY Policy No: 6056903005 Endorsement No: 8 Effective Date: 01/01/2018 Copynght CNA AJI Rights Reserved. Includes copyrighted material of Insurance Services (ice, Inc., with its permission. Iv- Lic Type General Business License L + r License # APP0003 Customer# , 0036545 City Hal f, ``'} (a0%{ Expires, June 30 2019 ` aT Q eDatPrinted 08/20/2012118"- Street, - Seal l3each'CA 90740-6379 r 562)431 25271Ext 131446ri1332 r '. ' >:.KC Email BusmessLicenseQaseslbeachca.'gov BUS11lC$$L1CCri$C Business L'ocahon 3737• BIRCH 4250t L,1C0riSe, ISSUt;d TO-"' f+E NEWPORT BEACH CA 92660 Anderson -Penna Partners,slnc yV• q 7 gh S{ Business T e3737BIRCH #250 * y : :. NEWPORT BEACH CA 92660 EngitieenngSvc; Owner s/Agent s•Name:.._ < , . Business , , -. Lisa'Penna + Engineering. Services POST INA CONSPICUOUS PLACE NNOTTRASFERABLE- el r City vf Seal Beach Ordinance NO: 1653_ Thebiisih6s.li6engi fak imposed by diel Chapter shall not apply to any. business whichthas gross anndal receipts,of. 25 000(or less m the'one year,penod,immedtately,preceding the issuance of a business icense To establish eligibiltyyfor the for thisiexeirption,,the business stiall,provide "such documentation;as requested by, i16e Director,of Finance including without limitationZtaz •returns, and financial documentation The`Directozof Finance shall establish such policies and procedures as are nece-ssary'to implement the'exemption granted heremf Any businegs . operating Iwthe' Gty with gross,receiptsiof more thanl$25,000, amivally shall pay,the full amount of the'applicable and afcopy,iof onerof the following Federal.Tax Returns must be submitted EXEMPTION. REOUIREMENTS .y` 2017Federal flax Returns (,,' x • r, - !: schedule C (Foim 1040) Profit or'Loss From Busmes"s`(Sole'Proprietorship) or '' " ' ; y-•' Sehedule'E (For_'m•1040)'— Supplemental' Income and,Losst.(From Rei4iti a[r Fstate, iRoyalhes"-P, armershipsv S;Corporations, Fstwes ,Trusts etc) or x r ae k,;.' ' t , o-,'•..; Schedule'C EZ(Formg1040) NeOProfitiFrom m6usess (SglePropnetorship) or f„q w y•., Form'1065`=U.S.;Re[uin of Par°tr"iership income' w Please note: All Independent;Contractors within an establishment are required to apply fora city business °license: Independent.Coniractors are those who work'on the premises, whose Federal/State incorne;taxesare`not typically withheld by the employerlbusiness owne',and receive an,annual Fed'eral-lncome'.Tax Fomi 1099 S s f l o r r AMENDMENT NO. 2 PROFESSIONAL SERVICES AGREEMENT OCEAN PLACE TRACT 17425 CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 & AndersonPenna Partners, Inc. 3737 Birch Street, STE 250 Newport Beach Newport Beach, CA 92660 T (949) 428-1500, F (949) 258-5053 This Amendment No. 2, dated July 7, 2020, amends that certain agreement (“Agreement”) dated November 13, 2018, as previously amended by Amendment No. 1 dated January 27, 2020, by and between the City of Seal Beach (“City”), a California charter city and AndersonPenna Partners, Inc. (“Consultant”), a California corporation. RECITALS A. City and Consultant are parties to the Agreement, pursuant to which Consultant provides professional construction management and inspection services to City for the Ocean Place Development Project (Tract 17425) (“Project”). B. City and Consultant wish to amend the Agreement for Consultant to provide additional professional construction management and inspection services to ensure all public infrastructure in the Project is constructed in accordance with City standard specifications, to continue plan checking services for the Project, and to increase Consultant’s compensation by $59,800 for those additional services required in connection with the Project, for revised total compensation in the not-to-exceed amount of $445,439, as provided herein. AMENDMENT NO. 2 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, as previously amended by Amendment No. 1, is hereby further amended to add subsection 1.1.2 to read as follows: “1.1.2 Consultant shall provide those additional services set forth in the attached Exhibit A-2 (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, A-2, B, and/or Exhibit B-1, B-2 and this Agreement, as amended by Amendment No. 2, Amendment No. 2 to this Agreement, shall control.” Section 2. Section 2.0 (Consultant’s Compensation) of the Agreement is hereby amended to read as follows: “2.0 Consultant’s Compensation City will pay Consultant in accordance with the hourly rates shown on the fee schedule set forth in Exhibits A, A-1 and A-2 for Services but in no event will the City pay more than $445,439. 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 A-2.” Section 3. Except as expressly modified or supplemented by this Amendment No. 2, all other provisions of the Agreement, as previously amended by Amendment No. 1, shall remain unaltered and in full force and effect. In the event of a conflict between the provisions of this Amendment No. 2 and the provisions of the Agreement and/or Amendment No. 1, the provisions of Amendment No. 2 shall control. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to be executed and attested by their proper officers thereunto: CITY OF SEAL BEACH By: Jill R. Ingram, City Manager Attest: By: Gloria D. Harper, City Clerk Approved as to Form: By: Craig A. Steele, City Attorney CONSULTANT By: Name: Its: By: Name: Its: (Please note, two signatures required for corporations under Corp. Code §313, unless corporate documents authorize only one person to sign this Agreement on behalf of the corporation.) Dino D'Emilia Vice President Vice President Lisa M. Penna Newport Beach El Segundo Long Beach San Diego www.ardurra.com dba EXHIBIT A-2 Agenda Item L AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Steve Myrter, P.E., Director of Public Works SUBJECT:Award and Authorize Execution of a Construction Contract with ACCO Engineered Systems, Inc., for the City Hall HVAC Replacement Project, CIP BG2001 ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7057: 1. Approving the plans, specifications, and contract documents for the City Hall HVAC Replacement Project, CIP BG2001; and, 2. Approving and awarding a construction contract to ACCO Engineered Systems, Inc. in the amount of $317,137.49 to replace the City Hall HVAC system pursuant to the exemption from competitive bidding requirements set forth in Seal Beach Municipal Code Section 3.20.025(D); and, 3. Authorizing the City Manager to execute the agreement for construction services to ACCO Engineered Systems Inc.; and, 4. Authorizing the City Manager to approve additional work requests and inspection services in connection with the Project in the cumulative not to exceed amount of $42,000. BACKGROUND AND ANALYSIS: Staff has determined that the City Hall rooftop HVAC system (“System”) that services the main building has reached the end of its serviceable life. This System has been in service for over nineteen years and it has become very difficult and costly to obtain replacement parts as needed to ensure system reliability. Accordingly, a replacement City Hall rooftop HVAC system was budgeted in the FY2020-21 Capital Improvement Program. Staff solicited for a HVAC system replacement proposal utilizing The Gordian Group EZIQC – Contract #: CA-08-SL-CM-A-030618-AES, as permitted by City of Seal Beach Municipal Code Section 3.20.025(D). This code provision contains Page 2 8 1 1 an exemption from the City’s competitive bidding requirements for purchases made in cooperation with the state, the county or another government entity for the purpose of obtaining a lower price upon the same terms, conditions and specifications. Prices are under this cooperative purchasing program are competitively solicited and provides the best overall government pricing. On April 24, 2020, the City received a responsible and responsive bid from ACCO Engineered Systems, Inc. (ACCO) in the amount of $317,137.49. The cost proposal is based on a complete HVAC replacement for the City Hall building. A new HVAC system is recommended for the following reasons: 1. The existing HVAC system has surpassed its service life. A new HVAC system will ensure reliable service for many years to come, as well as provide a 5-year warranty that will safeguard the new HVAC system. 2. The existing HVAC system is not in a serviceable condition. It has become very difficult to obtain parts and perform maintenance given the age of the unit. A new HVAC system will provide greater long-term cost efficiency by providing superior reliability, much greater energy efficiency, and ease of maintenance. 3. The new HVAC system will enhance air filtration throughout the building. Based on ACCO’s references, qualifications, and previous work experience, staff recommends awarding a construction contract to ACCO Engineered Systems, Inc. for the City Hall HVAC Replacement Project. Staff further recommends authorizing the City Manager to approve additional work requests up to $32,000 and inspection services up to $10,000, in the cumulative not-to-exceed amount of $42,000. ENVIRONMENTAL IMPACT: This Project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under Section 15301 Class 1 Subsection (d). LEGAL ANALYSIS: The City Attorney has reviewed the agreement and approved the resolution as to form. FINANCIAL IMPACT: The FY2020-21 Capital Improvement Program budget currently allocates $385,000 for City Hall HVAC Replacement Project. The table below presents the estimated breakdown of the Project cost: Page 3 8 1 1 Description Amount Construction $ 317,137.49 Contingency $ 32,000.00 Inspection $ 10,000.00 Total $ 359,137.49 Unused funds will be returned back to the original funding sources. 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 7057: 1. Approving the plans, specifications, and contract documents for the City Hall HVAC Replacement Project, CIP BG2001; and, 2. Approving and awarding a construction contract to ACCO Engineered Systems, Inc. in the amount of $317,137.49 to replace the City Hall HVAC system pursuant to the exemption from competitive bidding requirements set forth in Seal Beach Municipal Code Section 3.20.025(D); and, 3. Authorizing the City Manager to execute the agreement for construction services to ACCO Engineered Systems Inc.; and, 4. Authorizing the City Manager to approve additional work requests and inspection services in connection with the Project in the cumulative not to exceed amount of $42,000. 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: David E. Fait, Deputy Director of Public Works/Maintenance and Utilities Page 4 8 1 1 ATTACHMENTS: A. Resolution 7057 B. Agreement with ACCO Engineered Systems, Inc. RESOLUTION 7057 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AWARDING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR CONSTRUCTION SERVICES WITH ACCO ENGINEERED SYSTEMS, INC. FOR CITY HALL HVAC REPLACEMENT PROJECT (CIP NO. BG2001) WHEREAS, staff has determined that the City Hall rooftop HVAC system that services the main building has reached the end of its serviceable life and needs replacement with a new City Hall HVAC Project (CIP No. BG2001) (“Project”); and, WHEREAS, the City solicited for a system replacement proposal for the Project utilizing The Gordian Group EZIQC cooperative purchasing program pursuant to the exemption from competitive bidding requirements as permitted by the City of Seal Beach Municipal Code Section 3.20.025(D); and, WHEREAS, the City received a responsible and responsive bid from ACCO Engineered Systems, Inc., in the amount of $317,137.49 for the Project; and, WHEREAS, ACCO Engineered Systems, Inc. is a qualified firm to perform the Project. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the plans, specifications, and contract documents for the Project. Section 2. The City Council hereby approves and awards a construction contract to ACCO Engineered Systems, Inc. for the Project in the amount of $317,137.49. Section 3. The City Council hereby authorizes the City Manager to execute the agreement on behalf of the City. Section 4. The City Council hereby authorizes the City Manager to approve payments for additional work requests up to $32,000, and inspection services up to $10,000, in connection with the Project in the cumulative not to exceed amount of $42,000. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July 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 7057 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July 2020. Gloria D. Harper, City Clerk Page 1 of 46 PUBLIC WORKS AGREEMENT CITY HALL HVAC REPLACEMENT PROJECT PROJECT CIP NO. BG2001 between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 & ACCO Engineered Systems, Inc. 888 East Walnut Street Pasadena, CA 91101 (818) 730-5845 This Contract (“Contract”) is made as of July 27, 2020, by and between the City of Seal Beach, a California charter city (“City”), and ACCO Engineered Systems, Inc., a California corporation, (“Contractor”). Page 2 of 46 RECITALS A. WHEREAS, the City Council has approved the plans and specifications for the City Hall HVAC Replacement Project, CIP BG2001 (“Project”) with respect to design criteria and technical requirements; and B. WHEREAS, pursuant to the authority provided by its City Charter and Seal Beach Municipal Code § 3.20.025(D), City solicited bids for the Project through The Gordian Group EZIQC - Contract #: CA-08-SL-CM-A-030618-AES. C. WHEREAS, Contractor submitted a bid to the City for the Project, dated July 16, 2020, in the amount of $317.137.49 ("Accepted Bid" hereinafter), attached hereto as Exhibit K and incorporated herein by reference, which constitutes the lowest acceptable quotation. The Accepted Bid contains, among other things, provisions defining the Project scope. D. WHEREAS, Contractor is a California licensed HVAC contractor (State Contractor's license number (License #120696, DIR #1000000546). E. WHEREAS, pursuant to the authority provided by its City Charter and Seal Beach Municipal Code § 3.20.025(D), City desires to engage Contractor to carry out the Project in the manner set forth herein and more fully described in Section 1.0. 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 themutual 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: Accepted Bid, Non-Collusion Declaration, Contractor’s Industrial Safety Record, 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 Page 3 of 46 (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), Standard Specifiations and Reference Documents (Exhibit H), Non-Collusion Declaration (Exhibit I), Contractor’s Industrial Safety Record (Exhibit J), Accepted Bid (Exhibit K), Sourcewell Indefinite Quantity Construction Agreement (Exhibit L), 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 July 27, 2020 (the “Effective Date”), and shall remain in full force and effect for until a Notice of Completion has been filed with the Orange County Clerk-Recorder, unless sooner terminated or extended pursuant to this Agreement. 3. Contractor’s Compensation. 3.1 Payment. For performing and completing the Work in accordance with the Contract Documents, City shall pay Contractor in accordance with the hourly rates shown on the fee schedule set forth in Exhibit K for the Work but in no event will City pay more than the total not-to-exceed amount of $317,137.49 (Three Hundred Seventeen Thousand One Hundred Thirty Seven and 49/100 dollars). 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. 3.2 Additional Work. 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. Page 4 of 46 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 Sourcewell Indefinite Quantity Construction Agreement (Exhibit L) 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 and appointed 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, charges, obligations, damages, actions, causes of action, proceedings, suits, losses, bid protests, stop notices, judgments, fines, penalties, liens, 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, incident to , related to, in connection with or resulting from Page 5 of 46 any act, failure to act, error or omission of the Contractor or any of its officers, agents, attorneys, servants, employees, Subcontractors, material suppliers or any of their officers, agents, servants or employees, and/or arising out of, incident to, related to, in connection with or resulting from any term, provision, image, plan, covenant, or condition in the Contract Documents; including, without limitation, the payment of all consequential damages, attorneys’ fees, experts’ fees, and other related costs and expenses (individually, a “Claim,” or collectively, “Claims”). 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. Page 6 of 46 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. 6.3 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. Page 7 of 46 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 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 Page 8 of 46 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, within five (5) Months of the Notice to Proceed, 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 for the remainder of the Project. 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: Page 9 of 46 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: ACCO Engineered Systems, Inc. 888 East Walnut Street Pasadena, CA 91101 Telephone: (818) 730-5845 Attn: Andy Lufkin 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 Page 10 of 46 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 tthat 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. Claim Dispute Resolution. 17.1 In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of Work, but shall proceed with the performance of the Work in dispute. Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The Disputed Work will be characterized as an “unresolved dispute” and payment, if any, shall be as later determined by mutual agreement or a court of law. Contractor shall keep accurate, detailed records of all Disputed Work, claims and other disputed matters. 17.2 All claims arising out of or related to the Contract Documents or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims. All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein. Thus, Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and Article 1.5 (if applicable), and must then adhere to Article 1.5 and Section 9204, as applicable, pursuant to the definition of “claim” as individually defined therein. 18. Antitrust Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. § 15) or under the Cartwright Act (Business and Professions Code Section 16700 et seq.) arising from purchases of goods, services, or materials pursuant to the Agreement. This assignment shall be made and become effective at the time City tenders final payment to Contractor without further acknowledgment by the parties. Page 11 of 46 19. Prohibited Interests; Conflict of Interest 19.1. Contractor covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Work, or which would conflict in any manner with the performance of the Work under this Agreement. Contractor further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Contractor shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Work. Contractor shall not accept any employment or representation during the term of this Agreement which is or may likely make Contractor “financially interested” (as provided in California Government Code §§ 1090 and 87100) in any decision made by City on any matter in connection with which Contractor has been retained. 19.2. Contractor further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Contractor, to solicit or obtain this Agreement. Nor has Contractor paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Contractor, 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 Contractor hereunder the full amount or value of any such fee, commission, percentage or gift. 19.3. Contractor 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 Contractor, and that if any such interest comes to the knowledge of Contractor at any time during the term of this Agreement, Contractor 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 20. 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. 21. 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. 22. 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. Page 12 of 46 23. 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. 24. 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. Work Order Signature Document EZIQC Contract No.: CA-08-SL-CM-A-030618-AES Seal Beach - City Hall Replace Multi-Zone RTU and Controls New Work Order 081739.00 Modify an Existing Work Order Work Order Title: Work Order Number.:Work Order Date: X 07/16/2020 Contractor Name: Contact: Phone: Contact: Phone: Andy Lufkin 818-730-5845 Owner Name:CALIFORNIA - City of Seal Beach Iris Lee 562-431-2527 ACCO Engineered Systems Work to be Performed Work to be performed as per the Final Detailed Scope of Work Attached and as per the terms and conditions of Sourcewell EZIQC Contract No CA-08-SL-CM-A-030618-AES. Brief Work Order Description: City of Seal Beach - City Hall HVAC Replacement - replace 25 ton multi-zone RTU and controls . X Will not apply:Liquidated Damages Will apply: Estimated Completion Date: Estimated Start Date: Time of Performance Work Order Firm Fixed Price: $317,137.49 Owner Purchase Order Number: Approvals Date DateContractorCALIFORNIA - City of Seal Beach 2.00 Page 1 of 1 7/16/2020 Work Order Signature Document 3.00 Detailed Scope of Work Iris LeeAndy LufkinTo:From: ACCO Engineered Systems CALIFORNIA - City of Seal Beach 888 East Walnut Street 211 Eighth Street Pasadena, CA 91101 Seal Beach, CA 90740 818-730-5845 562-431-2527 Work Order Number: July 16, 2020Date Printed: 081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and ControlsWork Order Title: Brief Scope:City of Seal Beach - City Hall HVAC Replacement - replace 25 ton multi-zone RTU and controls. Revised FinalPreliminaryX The following items detail the scope of work as discussed at the site. All requirements necessary to accomplish the items set forth below shall be considered part of this scope of work. City of Seal Beach - City Hall HVAC - Replace Multi-Zone RTU and Controls ·Please see detailed scope of work attached to this work order package. The following general specifications apply: · Standard Specifications for Public Works Construction (“Greenbook”) · Construction Specifications Institute ("CSI") ·Prevailing wage rates shall apply. ·Liquidated damages apply per owner contract. Subject to the terms and conditions of JOC Contract CA-08-SL-CM-A-030618-AES. Contractor Date DateCALIFORNIA - City of Seal Beach Page 1 of 1 7/16/2020 Scope of Work 4.00 Contractor's Price Proposal - Summary Owner PO #: Seal Beach - City Hall Replace Multi-Zone RTU and Controls 081739.00 CA-08-SL-CM-A-030618-AESIQC Master Contract #: Work Order #: Title: Re: July 16, 2020Date: Proposal Value: Contractor: ACCO Engineered Systems $317,137.49 $317,137.49MULTI-ZONE UNIT Proposal Total Thisl total represents the correct total for the proposal. Any discrepancy between line totals, sub-totals and the proposal total is due to rounding. $317,137.49 Page 1 of 1 7/16/2020 Contractor's Price Proposal - Summary 5.00 Contractor's Price Proposal - Detail Seal Beach - City Hall Replace Multi-Zone RTU and Controls 081739.00 CA-08-SL-CM-A-030618-AESIQC Master Contract #: Work Order #: Owner PO #: Title: Re: July 16, 2020Date: Proposal Value: Contractor: ACCO Engineered Systems $317,137.49 (Excludes)Equip.MaterialLabor Line TotalDescriptionUOMMod.ItemSect. MULTI-ZONE UNIT 01 22 16 00 0002 Reimbursable FeesReimbursable Fees will be paid to the contractor for eligible costs. The base cost of the Reimbursable Fee is $1.00. Insert the appropriate quantity to adjust the base cost to the actual Reimbursable Fee (e.g. quantity of 125 = $125.00 Reimbursable Fee). If there are multiple Reimbursable Fees, list each one separately and add a comment in the "note" block to identify the Reimbursable Fee (e.g. sidewalk closure, road cut, various permits, extended warrantee, expedited shipping costs, etc.). A copy of each receipt shall be submitted with the Price Proposal. 1 $6,858.87EA Installation =x x 6,858.87 FactorUnit PriceQuantity Total 1.00 1.1000 6,235.34 PAYMENT AND PERFORMANCE BONDS PER SOURCEWELL AGREEMENT 2% OF $310,310.66 X 2% = $6,206.21 01 22 20 00 0079 Manufacturer Technical AdvisorFor oversight of installation of special manufactured equipment. Advisor to be requested by and cost to be approved by Owner only. 2 $4,818.40HR Installation =x x 4,818.40 FactorUnit PriceQuantity Total 100.00 1.2046 40.00 Rigging of units on and off the roof (5) ACCO In-house rigging techs for (1) day (1) Foreman + (2) journeyman will be on the roof and (2) journeyman will be on equipment bed truck safely fastening pipe for rigging to roof. 01 22 20 00 0091 Flagperson For Traffic Control3 $1,397.91HR Installation =x x 1,397.91 FactorUnit PriceQuantity Total 72.53 1.2046 16.00 Flagperson around crane for traffic control 01 22 20 00 0093 Traffic Control SystemIncludes 1 truck, 1 arrow board, 1 licensed traffic control person, traffic cones. 4 $996.39DAY Installation =x x 996.39 FactorUnit PriceQuantity Total 964.75 1.0328 1.00 LI used for approved traffic control plan 01 22 20 00 0094 Traffic Control DrawingsIncludes engineered stamped drawings as required by governing agency. 5 $644.73EA Installation =x x 644.73 FactorUnit PriceQuantity Total 624.25 1.0328 1.00 Traffic control drawings for street closure permit 01 22 23 00 0955 100 To 110 Ton Lift, Cable Controlled Lattice Boom, Truck Mounted Mechanical Crane With Full-Time Operator 6 $3,505.22DAY Installation =x x 3,505.22 FactorUnit PriceQuantity Total 2,909.86 1.2046 1.00 Crane to rig equipment on and off the roof 01 71 13 00 0012 100 Ton Lift Move On/Off Cost, Cable Controlled Lattice Boom Mechanical CraneIncludes delivery and pickup. 7 $1,075.76EA Installation =x x 1,075.76 FactorUnit PriceQuantity Total 1,041.60 1.0328 1.00 Mobilization of the crane Page 1 of 9 7/16/2020 Contractor's Price Proposal - Detail Contractor's Price Proposal - Detail Continues.. Work Order Title: Work Order Number:081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls MULTI-ZONE UNIT 01 74 19 00 0016 40 CY Dumpster (5 Ton) "Construction Debris"Includes delivery of dumpster, rental cost, pick-up cost, hauling, and disposal fee. Non-hazardous material. 8 $691.95EA Installation =x x 691.95 FactorUnit PriceQuantity Total 669.97 1.0328 1.00 Dumpster for construction material disposal 01 74 19 00 0030 Traditional Building Construction Materials Landfill Dump Fee9 $2,480.79CY Installation =x x 2,480.79 FactorUnit PriceQuantity Total 12.01 1.0328 200.00 Construction materials dump fee 01 74 19 00 0038 Hauling On Paved Roads, First 15 Miles10 $2,199.86CYM Installation =x x 2,199.86 FactorUnit PriceQuantity Total 0.71 1.0328 3,000.00 Hauling of construction materials to recycling center. Number 1 Recycling 07 01 50 81 0002 Roof Repair, Built-Up Roofing, Up To 10 SF11 $3,317.23SF Installation =x x 3,317.23 FactorUnit PriceQuantity Total 19.67 1.2046 140.00 Roof repairs as needed 07 05 13 00 0004 >2 To 3 SQ, Mobilization Of Crew For Small Quantity Of Roof Work12 $2,110.39EA Installation =x x 2,110.39 FactorUnit PriceQuantity Total 583.98 1.2046 3.00 Roof repairs as needed 07 51 13 00 0013 Fine Mineral Surfaced, Asphalt Coated Fiberglass Base Sheet, Hot-Mopped13 $179.55SQ Installation =x x 179.55 FactorUnit PriceQuantity Total 57.95 1.0328 3.00 Roof repairs as needed 07 51 13 00 0079 BURmastic Premium Composite Ply, Cold Applied BUR ComponentAsphalt coated polyester/glass/polyester trilaminate reinforced high strength ply sheet. Type II. 57 mil. Also used as a hot or cold applied base sheet. 14 $301.78SQ Installation =x x 301.78 FactorUnit PriceQuantity Total 97.40 1.0328 3.00 Roof repairs as needed 07 51 13 00 0105 24" TRA Elastomeric Flashing MembranePolyester reinforced flashing membrane. 45 mils. 15 $1,248.78LF Installation =x x 1,248.78 FactorUnit PriceQuantity Total 19.56 1.2046 53.00 Roof repairs as needed 07 51 13 00 0176 60 Mil Thermoplastic Polyolefin (TPO) Polyester White Membrane16 $712.39SQ Installation =x x 712.39 FactorUnit PriceQuantity Total 197.13 1.2046 3.00 Roof repairs as needed 22 11 16 00 0878 3/4" Inside Diameter Copper Pipe/Tubing Type L AssemblyIncludes all hangers and couplings, elbow, tee, reducer fittings. All hangers are complete assemblies. Not for use where detail is available. 17 $464.55LF Installation =x x 398.45 FactorUnit PriceQuantity Total 19.29 1.0328 20.00 Demolition x x = 66.10 3.20 1.0328 20.00 Condensate drain piping 23 01 10 91 0002 Up To 100', Up To 1-1/2" Diameter Pipe, Purge Gas Systems18 $1,975.06EA Installation =x x 1,975.06 FactorUnit PriceQuantity Total 409.90 1.2046 4.00 Purging of gas piping Page 2 of 9 7/16/2020 Contractor's Price Proposal - Detail Contractor's Price Proposal - Detail Continues.. Work Order Title: Work Order Number:081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls MULTI-ZONE UNIT 23 01 20 91 0002 Up To 1", Lock Out/Tag Out Valve19 $91.67EA Installation =x x 91.67 FactorUnit PriceQuantity Total 22.19 1.0328 4.00 Lock out tag out piping 23 01 20 91 0024 Shut Down Existing Interior Piping SystemIncludes lock out/tag out and average line tracing. Use when valves are greater than 25' from work. When the shut-off valves for multiple lines are located with a 10' radius, the quantity used shall be one. 20 $861.39EA Installation =x x 861.39 FactorUnit PriceQuantity Total 178.77 1.2046 4.00 Shut down of gas feeding the units prior to demo & install 23 01 20 91 0026 Up To 100', Up To 1-1/2" Diameter Pipe, Purge Liquid System21 $703.94EA Installation =x x 703.94 FactorUnit PriceQuantity Total 292.19 1.2046 2.00 Evacuating refrigerant piping 23 01 60 71 0003 Recovery And Recharging Of RefrigerantIncludes cleaning refrigerant gas prior to recharging. 22 $1,572.00LB Installation =x x 1,572.00 FactorUnit PriceQuantity Total 13.05 1.2046 100.00 Recovery of refrigerant prior to demoing all the unit & recharging post installation 23 05 29 00 0605 5-5/8" x 6" x 36" Rooftop Bridge Support Base With 12 Gauge Galvanized Channel (Cooper B-Line Dura-Blok DB10-36) 23 $3,190.99EA Installation =x x 2,816.60 FactorUnit PriceQuantity Total 116.91 1.2046 20.00 Demolition x x = 374.39 15.54 1.2046 20.00 Durabloks to support electrical conduit, condensate piping and gas piping 23 05 48 13 0054 2" x 2", 3/8" Thick Ribbed Neoprene Isolation Pad24 $59.90EA Installation =x x 41.56 FactorUnit PriceQuantity Total 5.03 1.0328 8.00 Demolition x x = 18.34 2.22 1.0328 8.00 Neoprene ribbed vibration isolation pads (4) per unit 23 05 93 00 0003 Balancing Heating And Ventilating Units25 $903.35EA Installation =x x 903.35 FactorUnit PriceQuantity Total 437.33 1.0328 2.00 Balancing of new units 23 05 93 00 0017 Balancing HVAC Duct System, Floor Height Supply, Return, Exhaust, Register And Diffuser 26 $469.97EA Installation =x x 469.97 FactorUnit PriceQuantity Total 56.88 1.0328 8.00 Balancing of ductwork after new unit installation 23 05 93 00 0026 Balance Dampers27 $276.86EA Installation =x x 276.86 FactorUnit PriceQuantity Total 24.37 1.0328 11.00 Balancing of dampers after installation 23 07 13 00 0036 2" Thick, Aluminum Foil/Mylar Film, Multi-Layer Sheet Elastomeric Insulation28 $33,772.73SF Installation =x x 30,994.08 FactorUnit PriceQuantity Total 31.79 1.0328 944.00 Demolition x x = 2,778.65 2.85 1.0328 944.00 Insulation for multizone unit and ductwork Page 3 of 9 7/16/2020 Contractor's Price Proposal - Detail Contractor's Price Proposal - Detail Continues.. Work Order Title: Work Order Number:081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls MULTI-ZONE UNIT 23 09 23 00 0003 EMCS Site Inspection Of Existing Facilities29 $1,776.42HR Installation =x x 1,776.42 FactorUnit PriceQuantity Total 215.00 1.0328 8.00 Building Controls 23 09 23 00 0006 EMCS System Software Programming And Graphics Programming30 $9,420.38HR Installation =x x 9,420.38 FactorUnit PriceQuantity Total 228.03 1.0328 40.00 Building Controls 23 09 23 00 0025 Install AHU Power Supply In A Control Enclosure31 $430.64EA Installation =x x 296.06 FactorUnit PriceQuantity Total 143.33 1.0328 2.00 Demolition x x = 134.57 65.15 1.0328 2.00 Building Controls 23 09 23 00 0027 Install And Wire Room Sensor32 $713.38EA Installation =x x 444.27 FactorUnit PriceQuantity Total 53.77 1.0328 8.00 Demolition x x = 269.11 32.57 1.0328 8.00 Building Controls 23 09 23 00 0028 Install And Wire Duct Sensor33 $861.27EA Installation =x x 592.17 FactorUnit PriceQuantity Total 71.67 1.0328 8.00 Demolition x x = 269.11 32.57 1.0328 8.00 Building Controls 23 09 23 00 0029 Install And Wire AHU Averaging Sensor34 $817.46EA Installation =x x 481.04 FactorUnit PriceQuantity Total 232.88 1.0328 2.00 Demolition x x = 336.42 162.87 1.0328 2.00 Building Controls 23 09 23 00 0030 Install And Wire AHU Humidity Sensor35 $360.12EA Installation =x x 259.11 FactorUnit PriceQuantity Total 125.44 1.0328 2.00 Demolition x x = 101.01 48.90 1.0328 2.00 Building Controls 23 09 23 00 0031 Install And Wire AHU CO2 Sensor36 $471.18EA Installation =x x 370.18 FactorUnit PriceQuantity Total 179.21 1.0328 2.00 Demolition x x = 101.01 48.90 1.0328 2.00 Building Controls 23 09 23 00 0032 Install And Wire Fan Or Filter DP Switch37 $471.18EA Installation =x x 370.18 FactorUnit PriceQuantity Total 179.21 1.0328 2.00 Demolition x x = 101.01 48.90 1.0328 2.00 Building Controls 23 09 23 00 0035 Install And Wire Duct Static Pressure Sensor38 $393.68EA Installation =x x 259.11 FactorUnit PriceQuantity Total 125.44 1.0328 2.00 Demolition x x = 134.57 65.15 1.0328 2.00 Building Controls Page 4 of 9 7/16/2020 Contractor's Price Proposal - Detail Contractor's Price Proposal - Detail Continues.. Work Order Title: Work Order Number:081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls MULTI-ZONE UNIT 23 09 23 00 0036 Install And Wire Duct High Static Sensor39 $215.32EA Installation =x x 148.04 FactorUnit PriceQuantity Total 71.67 1.0328 2.00 Demolition x x = 67.28 32.57 1.0328 2.00 Building Controls 23 09 23 00 0038 Install And Wire Emergency Stop Switch For AHU40 $578.68EA Installation =x x 444.10 FactorUnit PriceQuantity Total 215.00 1.0328 2.00 Demolition x x = 134.57 65.15 1.0328 2.00 Building Controls 23 09 23 00 0039 Install And Wire AHU Connection To Starter41 $780.53EA Installation =x x 444.10 FactorUnit PriceQuantity Total 215.00 1.0328 2.00 Demolition x x = 336.42 162.87 1.0328 2.00 Building Controls 23 09 23 00 0042 Install And Wire AHU Damper Actuator42 $578.68EA Installation =x x 444.10 FactorUnit PriceQuantity Total 215.00 1.0328 2.00 Demolition x x = 134.57 65.15 1.0328 2.00 Building Controls 23 09 23 00 0043 Install And Wire AHU Smoke Detector Or Fire Alarm Relay43 $360.12EA Installation =x x 259.11 FactorUnit PriceQuantity Total 125.44 1.0328 2.00 Demolition x x = 101.01 48.90 1.0328 2.00 Building Controls 23 09 23 00 0047 Install And Wire AHU Magnahelic44 $437.45EA Installation =x x 370.18 FactorUnit PriceQuantity Total 179.21 1.0328 2.00 Demolition x x = 67.28 32.57 1.0328 2.00 Building Controls 23 09 23 00 0048 Install And Wire AHU Wireway For Control Enclosure45 $578.68EA Installation =x x 444.10 FactorUnit PriceQuantity Total 215.00 1.0328 2.00 Demolition x x = 134.57 65.15 1.0328 2.00 Building Controls 23 09 23 00 0049 Wire And Assemble AHU Control EnclosureIncludes installing all panel devices for a medium size panel. 46 $814.24EA Installation =x x 814.24 FactorUnit PriceQuantity Total 394.19 1.0328 2.00 Building Controls 23 09 23 00 0054 Install And Wire Fan Coil Unit Controller47 $471.00EA Installation =x x 370.07 FactorUnit PriceQuantity Total 358.32 1.0328 1.00 Demolition x x = 100.93 97.72 1.0328 1.00 Building Controls 23 09 23 00 0055 Mount Fan Coil Unit, Heat Pump, Or Unit Ventilator Controller48 $222.13EA Installation =x x 222.13 FactorUnit PriceQuantity Total 107.54 1.0328 2.00 Building Controls Page 5 of 9 7/16/2020 Contractor's Price Proposal - Detail Contractor's Price Proposal - Detail Continues.. Work Order Title: Work Order Number:081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls MULTI-ZONE UNIT 23 09 23 00 0069 Wire And Terminate Temperature Well SensorExcludes well.49 $1,144.01EA Installation =x x 739.98 FactorUnit PriceQuantity Total 89.56 1.0328 8.00 Demolition x x = 404.03 48.90 1.0328 8.00 Building Controls 23 09 23 00 0105 Wire Split System AC Thermostat50 $6,325.20EA Installation =x x 5,921.17 FactorUnit PriceQuantity Total 716.64 1.0328 8.00 Demolition x x = 404.03 48.90 1.0328 8.00 Building Controls 23 09 23 00 0108 Install And Wire Combination Outside Air Temperature /Outside Air Humidity Sensor 51 $2,805.95EA Installation =x x 1,998.51 FactorUnit PriceQuantity Total 483.76 1.0328 4.00 Demolition x x = 807.44 195.45 1.0328 4.00 Building Controls 23 09 23 00 0241 Optimum Start/Stop ProgramPriced per controller requiring optimum start programming. 52 $251.90EA Installation =x x 251.90 FactorUnit PriceQuantity Total 81.30 1.0328 3.00 Building Controls 23 09 23 00 0252 Basic Economizer Program, HVAC (AHU, RTU, AC Units, Etcetera) Programming Measures 53 $2,691.49EA Installation =x x 2,691.49 FactorUnit PriceQuantity Total 868.67 1.0328 3.00 Building Controls 23 09 23 00 0261 Discovery And Integration Of Network Devices (Priced Per Point)54 $4,037.22EA Installation =x x 4,037.22 FactorUnit PriceQuantity Total 65.15 1.0328 60.00 Building Controls 23 09 23 00 0263 Single Site Home Page Graphics Page With HTML Navigation Code55 $1,505.24EA Installation =x x 1,505.24 FactorUnit PriceQuantity Total 1,457.44 1.0328 1.00 Building Controls 23 09 23 00 0276 Outdoor Mounted Temperature And Humidity Transmitter (Honeywell H7635C1002) 56 $5,302.19EA Installation =x x 4,524.72 FactorUnit PriceQuantity Total 625.86 1.0328 7.00 Demolition x x = 777.47 107.54 1.0328 7.00 Building Controls 23 09 23 00 0532 Controller UC400 13" DIN Rail Enclosure, 120 Volt (Trane X13651559010)57 $413.64EA Installation =x x 349.31 FactorUnit PriceQuantity Total 338.22 1.0328 1.00 Demolition x x = 64.32 62.28 1.0328 1.00 Building Controls 23 09 23 00 0621 Up To 1,000 Point, High Speed Ethernet Router (Automated Logic LGR1000)58 $5,362.18EA Installation =x x 5,075.10 FactorUnit PriceQuantity Total 4,913.92 1.0328 1.00 Demolition x x = 287.09 277.97 1.0328 1.00 Building Controls Page 6 of 9 7/16/2020 Contractor's Price Proposal - Detail Contractor's Price Proposal - Detail Continues.. Work Order Title: Work Order Number:081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls MULTI-ZONE UNIT 23 09 23 00 0640 6 Digital Outputs, 10 Universal Inputs, 4 Analog Outputs Single Equipment Control Module (Automated Logic SE6104a) 59 $11,856.77EA Installation =x x 10,349.55 FactorUnit PriceQuantity Total 3,340.29 1.0328 3.00 Demolition x x = 1,507.22 486.45 1.0328 3.00 Building Controls 23 09 23 00 0810 10K Ohm Thermistor Duct Temperature Sensor With Weatherproof Housing (Kele ST-D24-XW) 60 $1,837.89EA Installation =x x 1,424.44 FactorUnit PriceQuantity Total 172.40 1.0328 8.00 Demolition x x = 413.45 50.04 1.0328 8.00 Building Controls 23 09 23 00 0856 DC Current Sensor, Split Core, 0-50/100/200 Amp (Selectable), 4-20mA, 0-5 Volt DC (Veris H970HCA) 61 $562.42EA Installation =x x 505.02 FactorUnit PriceQuantity Total 244.49 1.0328 2.00 Demolition x x = 57.40 27.79 1.0328 2.00 Building Controls 23 09 23 00 0856 DC Current Sensor, Split Core, 0-50/100/200 Amp (Selectable), 4-20mA, 0-5 Volt DC (Veris H970HCA) 62 $2,249.69EA Installation =x x 2,020.07 FactorUnit PriceQuantity Total 244.49 1.0328 8.00 Demolition x x = 229.61 27.79 1.0328 8.00 Building Controls 23 09 23 00 0919 360 IN-LB, 24 Volt AC, 4-20mA, 2-10 Volt DC, Proportional Control, Non-Spring Return Direct Coupled Control Damper Actuator (Belimo GMB24-SR) 63 $7,884.19EA Installation =x x 6,988.26 FactorUnit PriceQuantity Total 563.86 1.0328 12.00 Demolition x x = 895.93 72.29 1.0328 12.00 Zone Damper Actuators 23 23 23 00 0009 Refrigerant R-410A64 $769.64LB Installation =x x 769.64 FactorUnit PriceQuantity Total 6.48 1.0328 115.00 Refrigerant 23 31 13 13 0004 Sheet Metal Ductwork, Medium Pressure, Field Fabricated, Galvanized, Field Assemble And Install 65 $15,442.97LB Installation =x x 12,130.32 FactorUnit PriceQuantity Total 10.07 1.2046 1,000.00 Demolition x x = 3,312.65 2.75 1.2046 1,000.00 Sheet metal as needed 23 31 13 13 0004 0085 For >500 To 1,000, Add66 $1,794.85 Installation =x x 1,794.85 FactorUnit PriceQuantity Total 1.49 1.2046 1,000.00 23 73 13 00 0070 12,500 CFM Multizone Air Handling Unit , Built-Up, Horizontal / Vertical, Draw-Through Fan 67 $39,218.68EA Installation =x x 34,508.88 FactorUnit PriceQuantity Total 33,412.94 1.0328 1.00 Demolition x x = 4,709.80 4,560.22 1.0328 1.00 New custom multizone air handling unit to be installed 23 73 13 00 0070 0018 For Economizer, Panel, Controls And Damper(s), Add68 $32,360.52EA Installation =x x 32,360.52 FactorUnit PriceQuantity Total 3,133.28 1.0328 10.00 Page 7 of 9 7/16/2020 Contractor's Price Proposal - Detail Contractor's Price Proposal - Detail Continues.. Work Order Title: Work Order Number:081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls MULTI-ZONE UNIT 23 73 13 00 0070 0025 For Medium Capacity Filter Box And Throwaway Filters, Add69 $12,055.19 Installation =x x 12,055.19 FactorUnit PriceQuantity Total 5,836.17 1.0328 2.00 23 73 13 00 0070 0037 For Direct Expansion Cooling Coil, Copper Fins, Add70 $15,953.86 Installation =x x 15,953.86 FactorUnit PriceQuantity Total 15,447.19 1.0328 1.00 23 73 13 00 0070 0057 For 2 Coils, Independent Circuits, Add71 $4,006.57 Installation =x x 4,006.57 FactorUnit PriceQuantity Total 3,879.33 1.0328 1.00 26 01 20 91 0002 Lock Out/Tag Out Local Disconnect72 $67.30EA Installation =x x 67.30 FactorUnit PriceQuantity Total 21.72 1.0328 3.00 26 05 23 00 0023 #18/7 Conductor, Low Volt Thermostat Cable73 $2,407.92MLF Installation =x x 2,011.30 FactorUnit PriceQuantity Total 649.14 1.0328 3.00 Demolition x x = 396.63 128.01 1.0328 3.00 Building Controls 26 05 33 13 0007 3/4" Electrical Metallic Tubing (EMT) With 3 #12 THHN/THWN AssemblyIncludes conduit, set screw connectors, set screw couplings, straps, wire as indicated. Not for use where detail is available. 74 $2,969.94CLF Installation =x x 2,279.46 FactorUnit PriceQuantity Total 689.71 1.0328 3.20 Demolition x x = 690.47 208.92 1.0328 3.20 Electrical installation materials 26 05 33 13 0031 3/4" Rigid Galvanized Steel (RGS) With 3 #10 THHN/THWN Wire AssemblyIncludes conduit, terminations, straps, wire as indicated. Not for use where detail is available. 75 $7,496.84CLF Installation =x x 5,886.79 FactorUnit PriceQuantity Total 890.60 1.0328 6.40 Demolition x x = 1,610.04 243.58 1.0328 6.40 Electrical installation materials 26 05 33 13 0577 3/4" Electrical Metallic Tubing (EMT) Conduit76 $3,160.37LF Installation =x x 2,344.46 FactorUnit PriceQuantity Total 4.54 1.0328 500.00 Demolition x x = 815.91 1.58 1.0328 500.00 Building Controls 26 24 16 00 0050 100 Amp Rating, 24 - 20 Amp Breakers, 120/208 Volt, 4 Wire, 3 Phase Assembled Panelboard, Main Lugs, 30 Circuit Capacity 77 $3,054.02EA Installation =x x 2,386.70 FactorUnit PriceQuantity Total 2,310.90 1.0328 1.00 Demolition x x = 667.32 646.13 1.0328 1.00 Electrical installation materials 26 28 16 00 0180 30 Amp, 600 Volt Class, 3 Phase, 3 Wire, 3 Blades And Fuseholders, Heavy Duty Fusible, NEMA 3R Enclosure, Neutral Kit, Bolt-On Hubs, Safety Switch 78 $1,089.18EA Installation =x x 892.74 FactorUnit PriceQuantity Total 864.39 1.0328 1.00 Demolition x x = 196.44 190.20 1.0328 1.00 Electrical installation materials Page 8 of 9 7/16/2020 Contractor's Price Proposal - Detail Contractor's Price Proposal - Detail Continues.. Work Order Title: Work Order Number:081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls MULTI-ZONE UNIT 26 28 16 00 0247 200 Amp, 600 Volt Class, 3 Phase, 3 Wire, 3 Blades, Heavy Duty Non-Fusible, NEMA 3R Enclosure, Neutral Kit, Bolt-On Hubs, Safety Switch 79 $1,985.43EA Installation =x x 1,612.18 FactorUnit PriceQuantity Total 1,560.98 1.0328 1.00 Demolition x x = 373.25 361.40 1.0328 1.00 Electrical installation materials 26 28 16 00 0638 Removal And Reinstallation Of Up To 100 Amp Safety Disconnect Switch80 $1,343.62EA Installation =x x 1,343.62 FactorUnit PriceQuantity Total 433.65 1.0328 3.00 Electrical installation materials 27 14 13 16 0181 2 Pair #22 AWG, Solid, Low Voltage, Placed In Conduit, Plenum Rated, Shielded 81 $9,075.46MLF Installation =x x 5,926.00 FactorUnit PriceQuantity Total 956.30 1.0328 6.00 Demolition x x = 3,149.46 508.24 1.0328 6.00 Building Controls wiring 27 14 13 16 0549 2/c #22 AWG, Stranded, Shielded, Plenum Rated, Speaker/Communications And Control Cable, Installed Exposed 82 $11,020.20MLF Installation =x x 7,580.86 FactorUnit PriceQuantity Total 1,223.35 1.0328 6.00 Demolition x x = 3,439.35 555.02 1.0328 6.00 Building Controls wiring $317,137.49Subtotal for MULTI-ZONE UNIT Proposal Total This total represents the correct total for the proposal. Any discrepancy between line totals, sub-totals and the proposal total is due to rounding. $317,137.49 Page 9 of 9 7/16/2020 Contractor's Price Proposal - Detail Subcontractor Listing 081739.00 Seal Beach - City Hall Replace Multi-Zone RTU and Controls CA-08-SL-CM-A-030618-AESIQC Master Contract #: Work Order #: Owner PO #: Title: Re: July 16, 2020Date: Proposal Value: Contractor: ACCO Engineered Systems $317,137.49 %DutiesName of Contractor Amount Baker Electric 6.31$20,000.00 Hill Crane 3.15$10,000.00 6.00 Page 1 of 1 7/16/2020 Subcontractor Listing RE: City of Seal Beach - City Hall 211 8th Street Seal Beach, CA 90740 1 | P a g e Mechanical Services 818 / 730-5845 Cell 2201 Park Place Suite # 400 El Segundo, CA 90245 April 23, 2020 Iris Lee City of Seal Beach Deputy Director of Public Works/City Engineer Email: ilee@sealbeachca.gov Subject: Seal Beach City Hall HVAC Upgrade ACCO will provide labor and material to complete the following Scope of Work:  Remove and replace the existing 25 Ton MultiZone Unit The new Multizone unit will be construction locally in California to allow for ease of future maintenance as well as reduced operational costs. The new unit will be constructed to allow increased efficiency. The new Multizone will be connected to a simple control system to allow City of Seal Beach to easily and accurately condition the space. We are pleased to offer you the following proposal for the HVAC upgrade at Seal Beach City Hall. ACCO will provide labor & materials for the following scope of work: MECHANICAL SCOPE OF WORK  Remove and replace (1) 25-ton Rooftop Multizone AC Unit • The existing Multizone Rooftop Unit has been discontinued and is no longer available • The new Replacement unit to have increased efficiency • Replacement unit options are heavier than the existing unit which will require structural upgrades to the existing roof structure  Start-up and title 24 compliance required testing on the newly installed AC unit CONTROLS SCOPE OF WORK HVAC Controls for (1) Split System for Council Chambers Unit  Disconnect existing Controls from the Council Chambers Unit.  Furnish and Install EMT conduit and cable for the new units’ communication.  Furnish and install EMT conduit and cable for the new units’ controls.  Test operation of the new unit. HVAC Controls for (1) Rooftop Multizone Unit  Disconnect existing Controls from the Multizone Unit.  Furnish and Install EMT conduit and cable for the new units’ communication.  Furnish and install EMT conduit and cable for the new units’ controls.  Test operation of the new unit. RE: City of Seal Beach - City Hall 211 8th Street Seal Beach, CA 90740 2 | P a g e Mechanical Services 818 / 730-5845 Cell 2201 Park Place Suite # 400 El Segundo, CA 90245 HVAC Controls for (7) Multizone Zones  Disconnect existing BMS Controls from the Multizone Unit zones.  Install (1) Factory provided Zone Thermostat for each Zone. (7 total)  Reconnect/extend existing controls conduit and cabling for each Room Thermostat to the new unit.  Test operation of the Zones. ELECTRICAL SCOPE OF WORK  Demo existing electrical connection, save conduit and wire for connection to new unit  Demo existing disconnect and install junction box. Splice existing conductors.  Demo existing conduit from inside roof curb and reroute to outside curb. Make new roof penetration and install flashing for roof repair by others.  Install new 200A disconnect with Fuses on the equipment. Make final equipment connection using seal tight flexible conduit.  Install new EMT conduit and wire from closest unswitched 120V source to power (3) new control panels (provided and installed by others).  Verify voltage and rotation at the completion of scope.  Assist with startup as needed. Clarifications:  Work to be done during after normal working hours.  Work for the split system indoor unit will be allowed to be completed during normal hours to prep for the weekend replacement.  ACCO assumes the systems we are connecting to are mechanically sound  Subcontractor's warranty shall be limited to its work on the zone, product, or material that is subject to a warranty claim. Notwithstanding any conflicting terms in the warranty documents or project specifications, Subcontractor's warranty expressly excludes all labor, materials or other costs related to access in the ceilings or other locations where the warrantied material is located. The owner or general contractor shall be responsible for all labor, material, or other costs necessary to provide Subcontractor with safe access to perform warranty work, including asbestos containment, monitoring, abatement work, opening/closing ceilings, or any other work necessary to grant Subcontractor safe access to the warrantied item in accordance with applicable OSHA standards, all of which must be provided prior to Subcontractor's warranty work.  Parking is assumed to be provided onsite  This job covers only those items listed in the above scope of work no work outside the scope of work will be performed without prior approval from customer’s representation.  ACCO assumes there not to be any asbestos. Any abatement work would need to be completed by others outside of this contract. RE: City of Seal Beach - City Hall 211 8th Street Seal Beach, CA 90740 3 | P a g e Mechanical Services 818 / 730-5845 Cell 2201 Park Place Suite # 400 El Segundo, CA 90245 Exclusions:  Line of sight modifications & upgrades (this will be provided by the City)  3d BIM Coordination  Abatement or any work around hazardous materials.  Concealed system issues / existing unforeseen conditions or repairs for code upgrades to existing systems.  Debris container, temp water/sewer or facilities and construction water.  Parking fees  Special inspections/testing/x-ray or any concrete X-ray.  Detection or handling of any declared hazardous substance.  Point load analysis that shows the weight of each hanger and reaction to the structure.  Demolition and asbestos abatement of any kind including removal of demolished debris.  Connection to existing or new fire/smoke detection system. This work is not included in this pricing. Pricing: Per ezIQC Task Catalog Proposal Terms: This proposal is valid for 30 days unless otherwise indicated. Thank you for this opportunity to quote this project and we look forward to working with you. Should you have any questions or require additional information, please call. Respectfully, ACCO Engineered Systems Andy Lufkin Project Manager (818) 730-5845 CC: Oscar Villalobos, ACCO Project Engineer (424) 394-8559 Jeremy Schwartz-Director of Operations & Procurement/CPO CA-08-SL-CM-A-030618-AES DocuSign Envelope ID: C4E46AC8-EAA5-4501-8E77-B9F5D176434F DocuSign Envelope ID: C4E46AC8-EAA5-4501-8E77-B9F5D176434F   Agenda Item M AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Steve Myrter, P.E. , Director of Public Works SUBJECT:Approving Amendment No. 1 to the Agreement Between the City of Seal Beach and Clear Channel Outdoor, LLC to Defer the Semi-Annual Advertising Revenue Sharing Payment ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7058: 1. Approving Amendment No.1 to the Agreement for Shelter Maintenance and Advertising dated March 10, 2014 between the City of Seal Beach and Clear Channel Outdoor, LLC to defer the $22,500 semi-annual advertising revenue sharing payment due to the City on July 31, 2020; and, 2. Waiving the applicable late fee that would otherwise be owed to the City for missing the July 31, 2020 payment so long as Contractor adheres to the deferred payment schedule; and, 3. Authorizing the City Manager to Execute Amendment No.1. BACKGROUND AND ANALYSIS: Clear Channel Outdoor, LLC (formally known as Metro Display Advertising) has contracted with the City of Seal Beach to provide and maintain bus shelters for transit agencies throughout the City since 1997. The City’s various agreements with Clear Channel Outdoor during this time period have ensured that the City does not incur costs for installation and maintenance of these bus shelters and allowed the City to share a portion of the gross advertising revenues earned through Clear Channel Outdoor bus shelter advertising. The current Agreement with Clear Channel Outdoor was approved at the March 10, 2014 City Council meeting for a five year term with an option to renew an additional five year term with the same Agreement conditions. In December 2019, the Agreement was renewed for a second five year term in accordance with the Agreement provisions. 8 1 4 The current Agreement provides that the City’s share of the gross bus shelter advertising revenues is the greater of: (1) 20% of gross advertising revenue generated by the shelters; or (2) a minimum annual guaranteed payment of $45,000 to be made in two semi-annual payments, the first payment of $22,500 by January 31st and the second payment of $22,500 by July 31st for each year of the Agreement term. Clear Channel Outdoor paid the first semi-annual (minimum) payment for calendar year 2020 of $22,500 by the January 31, 2020 due date. Subsequent to making this payment, Clear Channel Outdoor reported that it experienced significant reductions in its bus shelter advertising revenues as result of the pandemic and the corresponding government ordered shut-downs at local and state levels. Moreover, Orange County Transportation Authority (OCTA) services have been drastically reduced since people are being asked not to use transit if there’s not an urgency which is directly impacting their bottom line. As such, Clear Channel Outdoor requested that the second semi-annual payment of $22,500, due on July 27, 2020, be deferred. Clear Channel Outdoor has committed to paying this deferred payment of $22,500 as part of their semi- annually payments scheduled for calendar year 2021. The January 31, 2021 semi-annual payment will include the regularly scheduled minimum amount of $22,500 and half of the deferred July 2020 payment of $11,250 for a total of $33,750. The balance of the deferred July 2020 payment would be paid as part of the calendar year 2021 semi-annual payment due by July 31, 2021 for a total amount of $33,750 to be received by the City. The 1% monthly late fee charge would be waived for the deferred July 2020 payment provided that the Contractor adheres to the deferred payment schedule. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: Under the terms of the Agreement, the City is scheduled to collect a minimum of $45,000 for fiscal year 2020-21 in shared advertising revenues from Clear Channel Outdoor. Approval of Amendment No. 1 to the Agreement will reduce the City’s 2020-21 advertising revenue from $45,000 to $33,750 because, under the deferred payment schedule, only half of the July 2020 balance will be paid in this fiscal year. However, the remaining balance of the deferred July 2020 semi- annual payment would be paid in fiscal year 2021-22 increasing the amount to be collected from Clear Channel Outdoor from a minimum of $45,000 to $56,250 in the next fiscal year. Despite the deferral, the overall revenue expected by the City under the Agreement will remain unchanged. 8 1 4 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 7058: 1. Approving Amendment No.1 to the Agreement for Shelter Maintenance and Advertising dated March 10, 2014 between the City of Seal Beach and Clear Channel Outdoor, LLC to defer the $22,500 semi-annual advertising revenue sharing payment due to the City on July 31, 2020; and, 2. Waiving the applicable late fee that would otherwise be owed to the City for missing the July 31, 2020 payment so long as Contractor adheres to the deferred payment schedule; and, 3. Authorizing the City Manager to execute Amendment No. 1. SUBMITTED BY: NOTED AND APPROVED: Steve Myrter Jill R. Ingram Steve Myrter, P.E. , Director of Public Works Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7058 B. Executed Clear Channel Outdoor, LLC Agreement C. Amendment. No. 1 - Clear Channel Outdoor Agreement RESOLUTION 7058 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT FOR SHELTER MAINTENANCE AND ADVERTISING BETWEEN THE CITY OF SEAL BEACH AND CLEAR CHANNEL OUTDOOR, LLC WHEREAS, the City of Seal Beach and Clear Channel Outdoor, LLC are parties to an Agreement for Shelter Maintenance and Advertising, dated October 10, 2014 (“Agreement”), pursuant to which Contractor provides and maintains bus shelters at various designated bus stop locations throughout the City and pays City a portion of its advertising revenue from the bus shelters; and, WHEREAS, As a result of the pandemic and the corresponding government ordered shut-downs at the local and state levels, Clear Channel Outdoor, LLC has experienced significant reductions in its bus shelter advertising revenues; and, WHEREAS, The parties wish to amend the Agreement to: 1) defer the $22,500 payment due to the City on July 31, 2020; and 2) waive the applicable late fee that would otherwise be owed to the City for missing the July 31, 2020 payment so long as Clear Channel Outdoor, LLC adheres to the deferred payment schedule. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. Amendment No. 1 to the Agreement for Shelter Maintenance and Advertising between the City of Seal Beach and Clear Channel Outdoor, LLC attached hereto as Exhibit “A” (“Amendment No. 1”) is approved. Section 2. The City Council hereby authorizes the City Manager to execute Amendment No. 1. 5 2 5 9 PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July, 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 7058 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk Clear Channel Outdoor, Inc. Attn: Layne Lawson Vice President Public Affairs 19320 Harborgate Way Torrance, CA 90501 Dear Mr. Lawson, This letter formally approves the request received by Clear Channel Outdoor, Inc to extend the term of the "Agreement for Bus Shelter Maintenance and Advertising between the City of Seal Beach and Clear Channel Outdoor, Incorporated" pursuant to Section 7.0 of this Agreement. As such, the term will now be extended an additional 5 years, ending on January 1, 2024. Additionally, in accordance with Section 3.1 of the Agreement, the applicable minimum annual guaranteed payment to the City will be $45,000 for each year of this new 5 year Agreement Term starting on January 1, 2019. Should you have any questions please do not hesitate to contract me at (562) 431-2527 at Ext. 1321 or by email at smyrter@sealbeachca.gov. Sincerely, eve Myrter, P.E. Public Works Director City of Seal Beach AGREEMENT FOR BUS SHELTER MAINTENANCE AND ADVERTISING between City of Seal Beach 211 - 8th Street Seal Beach, California 90740 Clear Channel Outdoor, Inc. 19320 Harborgate Way Los Angeles California 90501 ] This Agreement ("the Agreement") is made as of , 2014, by and between Clear Channel Outdoor Inc. ("Contractor"), a Delaware corporation, and the City of Seal Beach City"), a California charter city, (collectively, "the Parties"). 1of10 RECITALS A. City desires bus shelters, each individually hereinafter referred to as a "shelter," to be provided and maintained at various designated bus stop locations throughout the City. B. Contractor represents that it is willing and qualified to provide such shelters under the terms and conditions hereinafter set forth. WHEREFORE, in consideration of the respective covenants and promises herein contained and subject to all of the terms and conditions hereof, the Parties hereby agree as follows: AGREEMENT 1.0 Applicability This Agreement applies to the shelters located within the City as depicted in Exhibit A to this Agreement, which is hereby incorporated by this reference. This Agreement contains all covenants and agreements between the Parties with respect to these shelters and supersedes any and all other agreements between the Parties, either oral or written, with respect to these shelters. Each Party to this Agreement acknowledges that no representation, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, that are not embodied herein, and that any amendment to this Agreement shall be effective only if executed in writing and signed by both City and Contractor. 2.0 Grant of License by City 2.1 City hereby grants Contractor, subject to the terms and conditions of the Agreement, a license to maintain and repair shelters at the locations depicted in Exhibit A. 2.2 This Agreement shall not be construed as granting Contractor any interest in real property owned by the City, and Contractor hereby expressly disclaims any such interest. 3.0 Fee Payable to City 3.1 During each year of the effective term of this Agreement (including any extension thereof pursuant to Section 7 of this Agreement), Contractor must pay City an annual fee equal to the greater of either: (1) 20% of the gross advertising revenue generated by the shelters; or (2) the applicable Minimum Annual Guarantee (herein so-called) set forth below: Portion of Effective Term Years 1-5 Years 6-10* if applicable Applicable Minimum Annual Guarantee 43,000.00 45,000.00* 3.2 Contractor must make payments of portions of the annual fee on a semi-annual basis as follows: 2of10 a) Contractor must make payment for the first half of each calendar year not later than July 31 of that year, which payment shall be half of the applicable Minimum Annual Guarantee; b) Contractor must pay the balance of the annual fee for each calendar year no later than January 31 of the following year; and c) Any amounts not paid when due shall bear interest at the rate of 1% per month, compounded monthly (but in no event more than the greatest rate permitted by applicable law). 3.3 All payments from Contractor to City must be accompanied and supported by a Statement of Account showing all shelters subject to this Agreement and the revenues received for each. Contractor must allow City or City's agents or representatives to inspect Contractor's books and records at Contractor's offices during reasonable business hours, upon no less than 15 days prior notice, to verify the fees due to City. City's right to inspect Contractor's books and records pursuant to this Section shall survive for two years following the termination of this Agreement. 4.0 Contractor's Services 4.1 Contractor must, at its sole cost and expense, maintain, repair, clean, and service the shelters. 4.1.1 Contractor's personnel may enter upon and into shelters for purposes of maintaining, repairing, cleaning, and servicing the shelters at any time reasonably necessary therefor. 4.1.2 Contractor must maintain the shelters in a state of good repair and must promptly repair any damage to the shelters and remove any graffiti from the shelters. 4.1.3 Contractor must clean and collect trash from all shelters not less than 2 times per week. 4.2 Contractor must, in performance of this Agreement, comply with all applicable federal, state, and local law. 4.3 Contractor must obtain and maintain all necessary permits for each shelter and is solely responsible for payment of all fees, costs, and permit charges regularly assessed by City. 4.4 Contractor must maintain all shelters in accordance with designs, plans, and specifications approved by the City Manager or his or her designee. Contractor must display its name in a conspicuous location on each shelter. Contractor must submit any proposed change in the design or configuration of any shelter to the City Manager for his or her prior written approval at least 30 days prior to the change. 4.5 Contractor must pay all sums that may become due for electrical energy supplied to the shelters and must indemnify City against any and all such costs. 3of10 4.6 Contractor may utilize the shelters for advertising subject to the requirements of California Business & Professions Code, Section 5408.5 and the terms and conditions set forth in this Section 4.6. 4.6.1 Contractor must make at least 10% of the advertising space on the shelters available at no charge to the City for the display of public service announcements. 4.6.2 All advertising and design diagrams are subject to the approval of the City Manager or his or her designee. 4.6.3 Contractor must not display any advertisement or sign on any shelter outside the area of the shelter designated for advertising pursuant to the design diagrams. 4.6.4 Contractor must not display any advertisement or sign on any shelter that would be offensive or objectionable to the public. 4.6.5 Contractor must not display any advertisement or sign on any shelter for competing services or products within a one -block radius of real property primarily devoted to providing those services or products. 4.6.5 Contractor must not display any adult oriented advertising or advertising for alcoholic beverages or tobacco products. 4.6.6 Contractor must not display on any shelter any work, phrase, symbol or character likely to interfere with, mislead, or distract traffic, or conflict with any traffic control device. Advertising panels must not be excessively illuminated or include rotating, flashing, or revolving lighting devices or moving parts. 4.6.7 If the City, in its sole discretion, determines that any advertising on any shelter violates the terms and conditions of this Section 4.6 Contractor must remove the advertising within 24 hours or receiving notice from the City. City may cover the advertisement until such time as Contractor has removed the advertisement. 5.0 Additional Shelters 5.1 Contractor may install shelters at additional locations if it obtains the prior written approval of the City. Such shelters must comply with all provisions of this Agreement. Notwithstanding anything to the contrary herein, Contractor is not and shall not be obligated to install or construct any new or additional shelters under this Agreement. 5.2 Where installation of a new shelter requires disturbing existing pavement, Contractor must promptly replace that pavement in a manner satisfactory to City. If Contractor's work results in any damage to utilities, street furniture, vegetation, or private property, Contractor must promptly restore, repair, or replace the damaged property to its original or a better condition. 4of10 6.0 Shelter Removal 6.1 Contractor may remove any shelter subject to this agreement upon 30 days written notice to the City if federal, state, or local taxes or regulations substantially diminish the value for advertising purposes of any shelter subject to this Agreement. 6.2 Contractor may remove any shelter subject to this agreement upon 30 days written notice to the City if the shelter is subject to chronic vandalism. For these purposes, chronic vandalism is damage inflicted to a shelter during any 1 year period that requires cumulative expenditures for replacement and repair in excess of the original cost of construction and installation of the shelter. 6.3 If upon expiration or termination of this Agreement, the City opts for the removal of any or all shelters, Contractor must immediately remove any or all such shelters as the City requests be removed. If Contractor does not remove all shelters within 30 days after notice to remove, City shall have the right to remove the remaining shelters, in which event Contractor must reimburse City for all costs of removal and site restoration. 6.4 Upon removal of any or all shelters under any circumstances, Contractor must also remove all material on the site, including but not limited to, all wires, and restore the site to the condition existing prior to installation of the shelter, including complete restoration of any sidewalk upon which the shelter was located. 7.0 Term This term of this Agreement shall commence as of January 1, 2014, and shall continue for a term of 5 years unless previously terminated as provided by this Agreement. Contractor shall have the option to renew this Agreement for an additional 5 years, upon the same terms and conditions as set forth in this Agreement, provided Contractor notifies City in writing of Contractor's intention to exercise its option at least 60 days prior to the expiration of the initial term. Contractor shall have no right to extend the term while it is in default under this Agreement, unless the time allowed to cure such default has not yet passed. 8.0 Termination 8.1 This Agreement may be terminated by City, without cause, or by Contractor based on reasonable cause, upon giving the other party written notice thereof not less than thirty 30 days prior to the date of termination. 8.2 This Agreement may be terminated by City upon 10 days' notice to Contractor if Contractor 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. 9.0 Independent contractor Contractor is an independent contractor and not an employee of the City. All services provided pursuant to this Agreement shall be performed by Contractor or under its supervision. 5of10 Contractor will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor 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. Contractor 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. 10.0 Insurance 10.1 Contractor must not commence work under this Agreement until it has provided evidence satisfactory to the City that Contractor has secured all insurance required under this Section. Contractor must 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 must be signed by a person authorized by that insurer to bind coverage on its behalf, and must be on forms provided by the City if requested. All certificates and endorsements must 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. 10.2 Contractor must, 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 must 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); and (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto). Contractor must 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; and (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 10.3 The insurance policies must contain the following provisions, or Contractor must 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 must be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, must stand in an unbroken chain of coverage excess of the Contractor'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 Contractor's insurance and must 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 6of10 as additional insureds with respect to the services or operations performed by or on behalf of the Contractor, 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 Contractor or for which the Contractor is responsible. 10.4 All insurance required by this Section must contain standard separation of insureds provisions and must not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 10.5 Any deductibles or self-insured retentions must be declared to and approved by the City. Contractor 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 Contractor shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 11.0 Representatives and Notices 11.1 The City Manager is the City's representative for purposes of this Agreement. 11.2 Director of Public Affairs for Clear Channel Outdoor - Southern California Division is the Contractor's sole representative for purposes of this Agreement. 11.3 Notices and written communications sent by one party to the other must be personally delivered or sent by certified or registered U.S. Mail, return receipt requested, postage prepaid, to the following addresses (or such other addresses as may be designated by notice given in accordance with this paragraph): If to City: City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 Attn: City Manager If to Contractor: Clear Channel Outdoor, Inc. 19320 Harborgate Way Los Angeles CA 90501 Attn: President - Southern California Division 12.0 Subcontractors No portion of this Agreement shall be subcontracted without the prior written approval of the City. Contractor is fully responsible to City for the performance of any and all subcontractors. 7of10 13.0 Assignment Contractor must 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. Notwithstanding anything to the contrary herein, Contractor shall have the right to assign or transfer this Agreement to an entity controlled, under common control with or affiliated with Contractor or that acquires all or substantially all of concessionaire's assets or stock without the consent of City. 14.0 Indemnification and Hold Harmless Contractor must defend, indemnify, and hold the City, its officials, officers, employees, volunteers and agents 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, omissions, or misconduct of Contractor, its employees, or its agents, arising out of or 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, damage, or injury arising from the sole negligence or willful misconduct of the City. Contractor must defend, at Contractor's own cost, expense, and risk, any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents or volunteers. Contractor must pay and satisfy any judgment, award, or decree that may be rendered against City or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Contractor must 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 herein provided. Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents or volunteers. All duties of Contractor under this Section shall survive termination of this Agreement. 15.0 Labor Certification By its signature hereunder, Contractor 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 Worker's 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. 16.0 Validity 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. 8of10 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. 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 Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City has the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 21.0 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 attorney's fees and all other costs incurred in connection with such action. 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 Each person executing this Agreement on behalf of Contractor warrants that he or she is duly authorized to execute this Agreement on behalf of said Party and that by his or her execution, Contractor is formally bound to the provisions of this Agreement. 9of10 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date and year first above written. CITY OF SEAL BEACH By: VX1 (A ill . Ingram, City an ger Attest: By: 2&& W M(i I Linda Devine, City Clerk Approved as to Form: By: QY &(, uinn arrow, City Attorney 10 of 10 CLEAR CHA L OUTDOOR, INC. By: 144C64 6i Name: p Its: I: Name: Its: Agenda Item E - 03/10/14 EXH I BIT A Clear Channel Revised) Direction Location 1 SB SEAL BEACH BLVD at BOEING ENTRANCE 2 SB SEAL BEACH BLVD at NORTH GATE ROAD 3 SB SEAL BEACH BLVD at BOLSA 4 SB SEAL BEACH BLVD at BRADBURY 5 SB SEAL BEACH BLVD at LAMPSON 413 SEAL BEACH BLVD a+ OLD RANO-1 6 NB SEAL BEACH BLVD at PCH SEAL BEACH BLVD a+ PC -1 7 SB SEAL BEACH BLVD at TOWNE CENTER DR 8 NB SEAL BEACH BLVD at ROAD C 9 SB SEAL BEACH BLVD at ROSSMOOR CENTER WAY 10 SB SEAL BEACH BLVD at ST. ANDREWS 11 NB SEAL BEACH BLVD at ST. CLOUD 12 EB WESTMINSTER at 2900 WESTMINSTER (DENNY'S) 13 NB PCH at 1ST 14 SB PCH at IST 15 SB PCH at ANDERSON 16 NB PCH at BALBOA 17 NB PCH at BOLSA 18 NB PCH at MAR VISTA 19 NB PCH at SEAL BEACH BLVD S PC -14 a+ SEAL BEACH BLVD KEY ADDED REMOVED Agenda Item N AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Philip L. Gonshak, Chief of Police SUBJECT:Seal Beach Police Department Purchase of AXON Body Worn Camera System, to include the purchase of integrated TASER 7 system and patrol vehicle camera system ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7059: 1. Approving an agreement between the City of Seal Beach and Axon Enterprise, Inc. for the purchase of Body Worn Cameras, in-dash camera system, TASER 7s, accessories and associated programs; and 2. Approving an “add-on” agreement between the City of Seal Beach and Central Square Technologies for the integration of AXON products with the current CAD/RMS systems; and 3. Authorizing the City Manager to execute the agreements and any necessary documents, amendments and extensions on behalf of the City of Seal Beach. BACKGROUND AND ANALYSIS: During the proposed fiscal year budget process, the Seal Beach Police Department created a CIP project to provide funding for public safety technology improvements within the community, which was approved and incorporated into the budget. One of these projects aimed to increase police transparency with the community, while simultaneously decreasing potential liability. This included the implementation of body worn cameras (“BWCs”) and the associated systems and technologies, including mounted in-dash vehicle cameras, TASER 7 devices, and the integration of the current CAD/RMS system to fully incorporate the system. The United States Department of Justice indicates in a November 2018 report, that as of 2016 nearly half (47%) of the 15,328 general-purpose law enforcement agencies in the United States had acquired body worn cameras. About 33% of Page 2 8 0 2 those without BWCs said they were likely to consider acquiring them. Additionally, 86% of those agencies had a formal BWC policy in place. The significant level of transparency this technology will provide the community with is immeasurable. With that, the potential liability cost of lawsuits during law enforcement encounters is an inevitable factor in this profession. Another way to help protect the police department, officers, and the City is to invest in current technology platforms such as a BWC system to prevent excessive liability costs. The primary reasons that local police and sheriff’s offices have acquired this technology is to improve officer safety, reduce agency liability, reduce and resolve citizen complaints, increase evidence quality (assisting in prosecution of cases), improve agency accountability and officer professionalism, improve community perceptions, simplify critical incident review processes, improve training opportunities, reduce use of force incidents, and to strengthen police leadership by illustrating efforts at transparency. One of the primary reasons some police agencies have not implemented a BWC program is due to costs of initial hardware and the associated operating costs of subscriptions and ongoing data storage. Other concerns include video transfer and sharing issues, ongoing maintenance and support costs, training costs, liability concerns, potential technical difficulties, and lack of support due to privacy concerns. Today, numerous agencies in and around Orange County, Southern California, and agencies throughout the State and nation are utilizing BWCs. Research of Technology Body Worn Cameras are small, transportable camera devices worn by police officers to record interactions with members of the public while on duty. The cameras can be attached to an officer’s uniform, vest, belt, or helmet and can produce video and audio recordings. The video footage is saved in the device and later uploaded to a secure web-based cloud storage platform. The benefit of a BWC is to capture video footage from where the officer is located at any specific moment. There are several companies offering the BWC technology, though options vary greatly when comparing the characteristics and capabilities of the device itself and the web-based evidence platforms each vendor provides with its product. Additionally, not every brand offers a fleet camera option. Characteristics to consider include camera quality, battery life, battery charge time, size, weight, placement options, field of vision, pre-event recording, video and audio format, ability to tag or mark events, download capability, and overall costs for hardware, storage and subscriptions, software, support services. Some of the leading products currently on the market include products offered by Axon, Motorola, Watchguard, Panasonic, Vievu, Coban, Patrol Eyes, and Getac to name just a few. Page 3 8 0 2 Storage and Sharing of Media The storage and sharing of BWC media is the largest cost, and more importantly, highest evidentiary concern using this technology. The following paragraphs will outline how BWC videos are stored and how the information is shared both internally and externally. Axon is a sole source proprietary provider, having exclusive rights to its program like many of the other vendors the City of Seal Beach currently utilizes such as Panasonic Arbitrator, Puma, West Covina RMS, and Motorola. Axon uses Evidence.com, which is an offsite, secure, cloud based Amazon digital storage solution. This is beneficial because Axon provides application updates and support services for their customers. Evidence.com is also the website utilized by Axon to access the BWC media. Each officer would be issued a serialized BWC, which is stored in a docking station. The officer would retrieve the BWC and use it for their shift, and upon return to the station, insert it into the docking station. The data then automatically downloads the media to the Evidence.com secure storage site. Each officer can access and view their videos through the website, or by utilizing the Axon App on their smart phones prior to downloading the data in the docking station. Police department professional staff can then share a link to the District Attorney’s office so they can access the video media from Evidence.com for discovery. Evidence.com has a built-in audit trail system that records who has accessed the videos to protect the chain of evidence. This process eliminates the alternative procedure of storing data on current city servers on site at the police department. It also eliminates having to utilize CDs or external storage drives, which would then need to be physically transported between the police department’s property and evidence room to court. Under the police department’s current outdated technology, the court liaison officer, after locating an associated video for discovery, burns the video to a disc (a process that takes roughly one hour per video), and then the disc must be physically delivered to the District Attorney’s office at the courthouse. The City’s IT staff was consulted regarding the potential concern of maintenance and storage of media for a project of this magnitude. Police department in-house IT personnel also recommend utilizing a BWC vendor that uses a secure offsite cloud based storage solution like Axon who specializes in this field. There would be more data integrity and protection of evidence and sensitive information using Axon’s current business model. Computer servers would not have to be housed onsite in the police station. Using the City’s current servers would require a significant amount of storage space which would then need to be securely guarded, maintained, managed, and staffed. It could also create the risk of catastrophic failure or loss of data during a power loss or other natural disaster. Police department staff has also consulted with the Orange County District Attorney’s (OCDA) office regarding sharing of media in this format for criminal investigations. Not only are they supportive of BWC’s, they are in full support of Page 4 8 0 2 the Evidence.com program already being utilized by a large number of Orange County police agencies. The OCDA’s office can provide training to users on best practices and policy considerations, and indicated they appreciate how video evidence emphasizes emotions that can’t be seen in a written police report. The addition of video to a criminal case investigation captures the realism of reported and documented crimes. The Evidence.com interface is consistent with what the OCDA is currently accessing, allowing for a seamless transition for the Seal Beach Police Department to work with them for discovery requests. Product Recommendation and Cost of Purchase After conducting research in this field, it is staff’s recommendation that Axon provides the latest camera innovation and technology utilizing its most current model, the Axon Body 3 BWC. Axon appears to be dominating the competition and monopolizing the industry. This law enforcement camera will provide real time technology and clearer evidence than comparable products. It allows for live streaming, enhanced low-light performance, reduced motion blur, and A1- powered (Amazon) processes. These important system features and functions are essential to the effective implementation of the Axon system in Seal Beach, and therefore, this system, with the necessary specifications, can only be obtained from one vendor, making this purchase exempt from bidding requirements under Seal Beach Municipal Code Section 3.20.025(B). Additionally, no other provider has a shared and secured system approved for the transmission of evidence with the District Attorney’s Office, and the Axon Body 3 BWC system is currently utilized by the OCDA’s Office. Axon is also the sole provider for the TASER 7, which is linked to the Axon Body 3 BWC system, as well as the fleet camera system. All three systems work together jointly to provide a recorded evidence trail of all three activated events taking place, without jeopardizing officer safety. With the City of Seal Beach purchasing all items jointly as proposed, Axon is able to provide $50,385.00 in savings from the Body Worn Cameras and Fleet Cameras, and $12,830.00 from the TASER 7 program, over the first year costs, resulting in a total of $63,215.00 in savings during the first year of the agreement. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. Page 5 8 0 2 FINANCIAL IMPACT: The purchase of Axon products are presented as five year plans, which includes the cost of equipment, unlimited cloud based storage, warranty replacements, and maintenance. The 5-year costs are as follows: Body-Worn Camera & Fleet System TASER 7 Upgrade Router Cost/ NetCloud Essnet Set-up CAD/RMS Conversion/ Configuration Total Per Year Year 1 $ 134,089 $ 26,426 $ 23,216 $ 22,080 $ 205,811 Year 2 104,746 35,235 - 3,000 142,981 Year 3 104,746 35,235 - 3,000 142,981 Year 4 104,746 35,235 - 3,000 142,981 Year 5 104,746 35,235 - 3,000 142,981 $ 553,073 $ 167,366 $ 23,216 $ 34,080 $ 777,735 The total cost of the program for 5 years is $777,735, which includes annual ongoing costs of $142,981 per year. The Fiscal Year 2019-20 Adopted Budget included CIP project BG2005 using Measure BB sales tax funds totaling $820,000 to be used as follows: $470,000 for body-worn/vehicle cameras, $300,000 for the automatic license plate readers and $50,000 for various smaller technology projects at the Police Department. In the Fiscal Year 2020-21 CIP Budget, an additional $80,000 was added to this project increasing the total project budget to $900,000. The budget for body- worn/vehicle cameras was based on the costs at that time assuming a three-year contract. The City was able to secure a five-year contract with no increases to the annual maintenance costs per year. Therefore, the remaining contract balance of $307,735 will be budgeted in future budget years. Additionally, staff recommends the costs in Years 2 through 5 be reallocated to the City’s information technology operating budget, as this will become an annual reoccurring cost and a new contract will be necessary when the current proposed agreement expires. If the proposed agreement is approved, the CIP project budget will be in Years 2 through 5 and will be budgeted in the City’s information technology operating budget in the General Fund in future years. STRATEGIC PLAN: This item is applicable to the Strategic Plan goals of increasing transparency, improving IT support, and retaining qualified employees. MEASURE BB: This item is directly applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. This item provides valuable tools to Page 6 8 0 2 the Police Department to better the community and increase transparency with technology. RECOMMENDATION: That the City Council adopt Resolution 7059: 1. Approving an agreement between the City of Seal Beach and Axon Enterprise, Inc. for the purchase of Body Worn Cameras, in-dash camera system, TASER 7s, accessories and associated programs; and 2. Approving an “add-on” agreement between the City of Seal Beach and Central Square Technologies for the integration of AXON products with the current CAD/RMS systems; and 3. Authorizing the City Manager to execute the agreements and any necessary documents, amendments and extensions on behalf of the City of Seal Beach. SUBMITTED BY: NOTED AND APPROVED: Philip Gonshak Jill R. Ingram Philip L. Gonshak, Chief of Police Jill R. Ingram, City Manager Prepared by: Commander Michael Ezroj ATTACHMENTS: A. Resolution 7059 B. Quote between AXON, Inc. and the City of Seal Beach C. Professional Service Agreement Between the City of Seal Beach and AXON, Inc. D. Add-On Agreement Between the City of Seal Beach and Central Square Technologies RESOLUTION 7059 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AN AGREEMENT BETWEEN AXON ENTERPRISE AND THE CITY OF SEAL BEACH FOR BODY WORN CAMERA, FLEET CAMERA, TAZER 7 SYSTEMS AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND ANY NECESSARY DOCUMENTS, AMENDMENTS AND EXTENSIONS ON BEHALF OF THE CITY OF SEAL BEACH WHEREAS the City of Seal Beach will enter into agreement with Axon Enterprise to provide Body Worn Cameras, Fleet Vehicle Cameras and TAZER 7 to the Seal Beach Police Department. WHEREAS the Seal Beach Police Department will use these tools in providing the highest quality of service to the Seal Beach residents and visitors. Additionally assisting in the transparency of the Police Department with the community, WHEREAS one of the qualified vendors for this technology project is Axon Enterprise who is already providing services to the Orange County Court Systems, as well as the City of Seal Beach, Police Department with the current TAZER 26 models. Axon is the only vendor that provides a camera system that integrates the TAZER 7 and fleet cameras to the current court systems, and these features the Seal Beach Police Department considers vital, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The Services Agreement between the City of Seal Beach and Vigilant Solutions attached hereto as Exhibit A (“Agreement”) is approved. Section 2. The City Manager is authorized to execute the Agreement on behalf of the City, along with any necessary documents, amendments or extensions thereto. 5 2 1 3 PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the July 27, 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 7059 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk Seal Beach Police Dept. -CA ISSUED 7/23/2020 AXON SALES REPRESENTATIVE Thom Ruseva-Mahan +1 4805026238 tmahan@axon.com Q-257975-44035.731TR 1 Payment Terms: Net 30 Delivery Method: Fedex -Ground Q-257975-44035.731TR Year 1 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 73746 PROFESSIONAL EVIDENCE.COM LICENSE 60 50 0.00 0.00 0.00 73686 EVIDENCE.COM UNLIMITED AXON DEVICE STORAGE 60 50 0.00 0.00 0.00 73683 10 GB EVIDENCE.COM A-LA-CART STORAGE 60 200 0.00 0.00 0.00 73680 AWARE PLUS LICENSE 60 50 0.00 0.00 0.00 73682 AUTO TAGGING LICENSE 60 50 0.00 0.00 0.00 73683 10 GB EVIDENCE.COM A-LA-CART STORAGE 60 12 0.00 0.00 0.00 73746 PROFESSIONAL EVIDENCE.COM LICENSE 60 4 0.00 0.00 0.00 Hardware 73202 AXON BODY 3 -NA10 50 699.00 0.00 0.00 74210 AXON BODY 3 -8 BAY DOCK 7 1,495.00 1,495.00 10,465.00 70033 WALL MOUNT BRACKET, ASSY, EVIDENCE.COM DOCK 7 43.90 43.90 307.30 74028 WING CLIP MOUNT, AXON RAPIDLOCK 55 0.00 0.00 0.00 11534 USB-C to USB-A CABLE FOR AB3 OR FLEX 2 50 0.00 0.00 0.00 75015 SIGNAL SIDEARM KIT 40 249.00 249.00 9,960.00 Other 73842 UNLIMITED EVIDENCE.COM TAP BUNDLE PAYMENT 12 50 1,068.00 1,068.00 53,400.00 73666 AWARE PLUS PAYMENT 12 50 300.00 300.00 15,000.00 Issued: 07/23/2020 Quote Expiration: 07/31/2020 Account Number: 109365 Axon Enterprise, Inc. 17800 N 85th St. Scottsdale, Arizona 85255 United States Phone: (800) 978-2737 Protect Life. PRIMARY CONTACT Aine (Anya) Eisenhauer Phone: (562) 799-4100 Email: aeisenhauer@sealbeachca.gov BILL TO Seal Beach Police Dept. -CA 211 Eighth Street Seal Beach, CA 90740 US SHIP TO Aine (Anya) Eisenhauer Seal Beach Police Dept. -CA 911 Seal Beach Boulevard Seal Beach, CA 90740 US SALES REPRESENTATIVE Thom Ruseva-Mahan Phone: +1 4805026238 Email: tmahan@axon.com Fax: +1 4809993359 Q-257975-44035.731TR 2 Year 1 (Continued) Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Other (Continued) 73827 AB3 CAMERA TAP WARRANTY 60 50 0.00 0.00 0.00 73828 AB3 8 BAY DOCK TAP WARRANTY 60 7 0.00 0.00 0.00 71019 NORTH AMER POWER CORD FOR AB3 8- BAY, AB2 1-BAY / 6-BAY DOCK 7 0.00 0.00 0.00 73835 AUTO TAGGING LICENSE PAYMENT 12 50 180.00 180.00 9,000.00 73837 EVIDENCE.COM PROFESSIONAL LICENSE PAYMENT 12 4 468.00 468.00 1,872.00 Services 79999 AUTO TAGGING / PERFORMANCE IMPLEMENTATION SERVICE 1 0.00 0.00 0.00 85144 AXON STARTER 1 2,750.00 2,750.00 2,750.00 Subtotal 102,754.30 Estimated Shipping 0.00 Estimated Tax 6,727.21 Total 109,481.51 Year 1 Spares Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Hardware 73202 AXON BODY 3 -NA10 1 699.00 0.00 0.00 74028 WING CLIP MOUNT, AXON RAPIDLOCK 1 0.00 0.00 0.00 11534 USB-C to USB-A CABLE FOR AB3 OR FLEX 2 1 0.00 0.00 0.00 87063 TECH ASSURANCE PLAN BODY 3 CAMERA PAYMENT 12 1 336.00 0.00 0.00 Other 73827 AB3 CAMERA TAP WARRANTY 12 1 0.00 0.00 0.00 Subtotal 0.00 Estimated Tax 0.00 Total 0.00 Year 1 Fleet Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 80217 FLEET 2 UNLIMITED WITH TAP PAYMENT 12 12 1,548.00 1,548.00 18,576.00 Hardware 80214 FLEET EVIDENCE.COM UNLIMITED STORAGE 60 12 0.00 0.00 0.00 Protect Life.Q-257975-44035.731TR 3 Year 1 Fleet (Continued) Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Hardware (Continued) 71088 AXON FLEET 2 KIT 12 0.00 0.00 0.00 87069 TECH ASSURANCE PLAN FLEET 2 KIT WARRANTY 12 0.00 0.00 0.00 Other 87050 FLEET VIEW XL ACCESS LICENSE 60 12 0.00 0.00 0.00 Services 74063 STANDARD FLEET INSTALLATION (PER VEHICLE)12 1,200.00 0.00 0.00 WiFi Offload 74074 WI-FI OFFLOAD SERVER HARDWARE 1 3,500.00 3,500.00 3,500.00 80219 WI-FI OFFLOAD, SOFTWARE MAINTENANCE PAYMENT 1 600.00 600.00 600.00 80218 WI-FI OFFLOAD, SOFTWARE LICENSE MAINTENANCE 1 0.00 0.00 0.00 Subtotal 22,676.00 Estimated Tax 1,931.65 Total 24,607.65 Year 2 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 80217 FLEET 2 UNLIMITED WITH TAP PAYMENT 12 12 1,548.00 1,548.00 18,576.00 Other 73842 UNLIMITED EVIDENCE.COM TAP BUNDLE PAYMENT 12 50 1,068.00 1,068.00 53,400.00 73666 AWARE PLUS PAYMENT 12 50 300.00 300.00 15,000.00 73835 AUTO TAGGING LICENSE PAYMENT 12 50 180.00 180.00 9,000.00 73837 EVIDENCE.COM PROFESSIONAL LICENSE PAYMENT 12 4 468.00 468.00 1,872.00 WiFi Offload 80219 WI-FI OFFLOAD, SOFTWARE MAINTENANCE PAYMENT 1 600.00 600.00 600.00 Subtotal 98,448.00 Estimated Tax 6,297.90 Total 104,745.90 Protect Life.Q-257975-44035.731TR 4 Year 3 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 80217 FLEET 2 UNLIMITED WITH TAP PAYMENT 12 12 1,548.00 1,548.00 18,576.00 Other 73309 AXON BODY CAMERA REFRESH ONE 50 0.00 0.00 0.00 73842 UNLIMITED EVIDENCE.COM TAP BUNDLE PAYMENT 12 50 1,068.00 1,068.00 53,400.00 73666 AWARE PLUS PAYMENT 12 50 300.00 300.00 15,000.00 73689 MULTI-BAY BWC DOCK MID REFRESH 7 0.00 0.00 0.00 73835 AUTO TAGGING LICENSE PAYMENT 12 50 180.00 180.00 9,000.00 73837 EVIDENCE.COM PROFESSIONAL LICENSE PAYMENT 12 4 468.00 468.00 1,872.00 73309 AXON BODY CAMERA REFRESH ONE 1 0.00 0.00 0.00 WiFi Offload 80219 WI-FI OFFLOAD, SOFTWARE MAINTENANCE PAYMENT 1 600.00 600.00 600.00 Subtotal 98,448.00 Estimated Tax 6,297.90 Total 104,745.90 Year 4 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 80217 FLEET 2 UNLIMITED WITH TAP PAYMENT 12 12 1,548.00 1,548.00 18,576.00 Other 73842 UNLIMITED EVIDENCE.COM TAP BUNDLE PAYMENT 12 50 1,068.00 1,068.00 53,400.00 73666 AWARE PLUS PAYMENT 12 50 300.00 300.00 15,000.00 73835 AUTO TAGGING LICENSE PAYMENT 12 50 180.00 180.00 9,000.00 73837 EVIDENCE.COM PROFESSIONAL LICENSE PAYMENT 12 4 468.00 468.00 1,872.00 WiFi Offload 80219 WI-FI OFFLOAD, SOFTWARE MAINTENANCE PAYMENT 1 600.00 600.00 600.00 Subtotal 98,448.00 Estimated Tax 6,297.90 Total 104,745.90 Protect Life.Q-257975-44035.731TR 5 Year 5 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 80217 FLEET 2 UNLIMITED WITH TAP PAYMENT 12 12 1,548.00 1,548.00 18,576.00 Other 73310 AXON BODY CAMERA REFRESH TWO 50 0.00 0.00 0.00 73842 UNLIMITED EVIDENCE.COM TAP BUNDLE PAYMENT 12 50 1,068.00 1,068.00 53,400.00 73666 AWARE PLUS PAYMENT 12 50 300.00 300.00 15,000.00 73688 MULTI-BAY BWC DOCK FINAL REFRESH 7 0.00 0.00 0.00 73835 AUTO TAGGING LICENSE PAYMENT 12 50 180.00 180.00 9,000.00 73837 EVIDENCE.COM PROFESSIONAL LICENSE PAYMENT 12 4 468.00 468.00 1,872.00 73310 AXON BODY CAMERA REFRESH TWO 1 0.00 0.00 0.00 73335 FLEET CAMERA REFRESH (ONE FRONT AND ONE REAR)12 0.00 0.00 0.00 WiFi Offload 80219 WI-FI OFFLOAD, SOFTWARE MAINTENANCE PAYMENT 1 600.00 600.00 600.00 Subtotal 98,448.00 Estimated Tax 6,297.90 Total 104,745.90 Grand Total 553,072.76 Protect Life.Q-257975-44035.731TR 6 Summary of Payments Payment Amount (USD) Year 1 109,481.51 Year 1 Spares 0.00 Year 1 Fleet 24,607.65 Year 2 104,745.90 Year 3 104,745.90 Year 4 104,745.90 Year 5 104,745.90 Grand Total 553,072.76 Discounts (USD) Quote Expiration: 07/31/2020 List Amount 569,607.30 Discounts 50,385.00 Total 519,222.30 *Total excludes applicable taxes Protect Life.Q-257975-44035.731TR 7 Agency Created For:Seal Beach Police Dept. -CA Axon Fleet In-Car Recording Platform This document details a proposed system design STATEMENT OF WORK & CONFIGURATION DOCUMENT Quote:Q-257975-44035.731TR Sold By: Thom Ruseva-Mahan Designed By: Ashlyn Frahm Installed By:Axon Target Install Date: 8 Q-257975-44035.731TR V-3.26.18 SYSTEM CONFIGURATION DETAILS The following sections detail the configuration of the Axon Fleet In -Car System Vehicle Hardware Vehicle Hardware 2 Axon Fleet Cameras will be installed in each vehicle 2 Axon Fleet Battery Boxes will be installed in each vehicle 1 Axon Signal Units will be installed in each vehicle 1 Cradlepoint IBR900-1200 router will be installed in each vehicle Axon Battery Boxes The battery box provides power to its connected camera for up to 4 hours allowing for video offload while the vehicle ignition state is OFF and the MDT is connected and available. Signal Activation Methods When triggered, the Axon Signal Vehicle (ASV) device will activate the recording mechanism for all configured Axon cameras within 30 feet of the vehicle. Mobile Data Terminal Each vehicle will be equipped with a Mobile Data Terminal provided by the customer. Mobile Data Terminal Requirements Operating System: Windows 7 or Windows 10 -x32 or x64 with the most current service packs and updates Hard Drive: Must have 25GB+ of free disk space RAM/Memory: Windows 7 -4GB or greater | Windows 10 -8GB or greater Ethernet Port: The system requires the MDT to have one dedicated and available Ethernet port reserved for an Ethernet cable from router. The Ethernet port can be located on an electronic and stationary mobile docking station. If a docking station is used, it is the preferred location for the Ethernet port. Wi-Fi Card: The system requires an 802.11n compatible Wi -Fi card using 5Ghz band. USB Ports: If the computer is assigned to the officer and does not remain with the vehicle, then the number dongles ordered should equal the number of officers or the number of computers assigned. At least one dedicated and available USB 2.0 port for the Fleet USB dongle USB Port on MDT or Dock. VEHICLE OVERVIEW SITE NAME CUSTOMER NAME Headquarters Seal Beach Police Dept. -CA Total Configured Vehicles •12 Total Vehicles with this Configuration Video Capture Sources •24 Total Cameras Deployed •1 Axon Signal Unit(s) Per Vehicle Mobile Data Terminal Per Vehicle •1 Located In Each Vehicle Mobile Router Per Vehicle •1 Cradlepoint IBR900-1200 Offload Mechanism •4G LTE Cellular Evidence Management System •Evidence.com Axon Camera Signal Unit In-Car Router Battery Box 9 Q-257975-44035.731TR Additional Considerations If the customer has a MiFi hotspot, embedded cellular, or USB 4G, then the customer must purchase a Cradlepoint router with an external antenna and Cradlecare. For agencies that use NetMotion Mobility, Axon traffic must be passed through; such that it does not use the Mobility VPN tunnel. Customer must provide IT and / or Admin resources at time of installation to ensure data routing if functional for Axon Fleet operation. In the event an Agency is unable to support the IT requirements associated with the installation, Axon reserves the right to charge the Agency for additional time associated with on -site work completed by an Axon Employee. Hardware Provisioning Customer will provide the following router for all vehicles:Cradlepoint IBR900-1200 The customer will provide a MDT for each vehicle In-Car Network Considerations Network Requirements Cradlepoint IBR900-1200 will create a dedicated 5Ghz WiFi network within each vehicle. This network will join the Axon Fleet cameras and Mobile Data Terminal together. Network Addressing IP Addressing Total IPs Required Axon Fleet Cameras 24 48Mobile Data Terminal 12 Cradlepoint IBR900-1200 12 Hardware Provisioning Customer to provide all IP addressing and applicable network information Network Consideration Agreement Network Consideration Agreement Customer acknowledges the minimum requirements for the network to support this Statement of Work. All Axon employees performing services under this SOW are CJIS certified. If the network provided by Customer does not meet the minimum requirements, or in the event of a requested change in scope of the project, a Change Order will be required and additional fees may apply. Additional fees would also apply if Axon is required to extend the installation time for reasons caused by the customer or the customer network accessibility. 10 Q-257975-44035.731TR Professional Services & Training Project Management Axon will assign a Project Manager that will provide the expertise to execute a successful Fleet camera deployment and implementation. The Project Manager will have knowledge and experience with all phases of the project management lifecycle and with all application modules being implemented. He/she will work closely with the customer's project manager and project team members and will be responsible for completing the tasks required to meet all contract deliverables . Vehicle Installation Axon will be performing the installation of all Axon Fleet vehicle hardware. Installation services purchased from Axon include a “clip” and removal of existing in -car system hardware. This does not include “full removal” of existing wiring. A “full removal” of all existing hardware and wiring is subject to additional fees. Axon provides basic Fleet operation overview to the customer lead and/or Admin at the time of install. Clip vs Rip installation removal: o It is necessary to differentiate between the type of equipment removal to be provided by Axon. Standard Fleet Installation includes hardware removal in a fashion considered “Clip” which means Axon cuts the wires from the old system without removing multiple panels, removing all wiring and parts from the old system.In the case Axon removes the hardware Axon is not responsible for the surplus of hardware or any devices that may have been physically integrated with the removed system.In some situations, radar systems are integrated with the in -car video system and have a cable that connects to the system, if Axon removes the old in car system then Axon is not responsible for the radar system as part of the removal. o A “Rip” removal should be contracted through ProLogic directly. The Rip would be similar to a complete and full removal, which is more common when they retire a vehicle from service. Custom Trigger Installation Axon Signal Units have multiple trigger configuration options. Any trigger configurations that include a door or magnetic door switch are considered “custom” and may be subject to additional fees. An Axon representative has discussed with the Agency the standard triggers of the Fleet System. Those standard triggers include light -bar activation, speed, crash and gun -locks. The light-bar must have a controller to allow Axon to interface for the desired position, gun -locks must be installed with existing hardware in the vehicle. Doors are considered “CUSTOM” since they required additional hardware and time for installation, typically requiring the door may need to be taken apart for the installation. Training End-user go-live training provides individual device set up and configuration assistance, training on device use, Evidence.com and AXON View XL. End-user go-live training and support is not included in the installation fee scope. 11 Q-257975-44035.731TR 4G / Cellular Offload Considerations Network Considerations The Cradlepoint IBR900-1200 will be the connection which allows 4G upload of recorded video The customer will ensure that their cellular contract does not allow for data throttling, or service denial, once a set data threshold is met. Throttling or denial of service will negatively affect Fleet upload capabilities. The MDT's 4G connection will facilitate the upload of recorded video content. Hardware Provisioning The customer will provide all 4G sim cards as required by their mobile provider. 12 Q-257975-44035.731TR Tax is subject to change at order processing with valid exemption. Axon’s Sales Terms and Conditions This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at www.axon.com/legal/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable.Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (i ncluding but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind t hat entity. If you do not have this authority, please do not sign this Quote. Signature:CustSIG Date:CustDate Name (Print):CustName Title:CustTitle PO# (Or write N/A):CustPo Please sign and email to Thom Ruseva-Mahan at tmahan@axon.com or fax to +1 4809993359 Thank you for being a valued Axon customer. For your convenience on your next order, please check out our online store buy.axon.com The trademarks referenced above are the property of their respective owners. Protect Life.Q-257975-44035.731TR 13 ***Axon Internal Use Only*** Review 1 Review 2 SFDC Contract #: Order Type: RMA #: Address Used: SO #: Comments: Payment Terms: Net 30 Delivery Method: Fedex -Ground Q-257815-44004.834TC Year 1 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 20248 TASER 7 EVIDENCE.COM ACCESS LICENSE 60 1 0.00 0.00 0.00 20248 TASER 7 EVIDENCE.COM ACCESS LICENSE 60 45 0.00 0.00 0.00 20246 TASER 7 DUTY CARTRIDGE REPLACEMENT ACCESS LICENSE 60 45 0.00 0.00 0.00 Hardware 20160 TASER 7 HOLSTER -SAFARILAND, RH+CART CARRIER 45 0.00 0.00 0.00 20050 HOOK-AND-LOOP TRAINING (HALT) SUIT 1 0.00 0.00 0.00 22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5- DEGREE) NS 90 0.00 0.00 0.00 22176 TASER 7 LIVE CARTRIDGE, CLOSE QUARTERS (12-DEGREE) NS 90 0.00 0.00 0.00 22177 TASER 7 HOOK-AND-LOOP TRN (HALT) CARTRIDGE, STANDOFF NS 90 0.00 0.00 0.00 22178 TASER 7 HOOK-AND-LOOP TRN (HALT) CARTRIDGE, CLOSE QUART NS 90 0.00 0.00 0.00 20008 TASER 7 HANDLE, YLW, HIGH VISIBILITY (GREEN LASER), CLASS 3R 45 0.00 0.00 0.00 20040 TASER 7 HANDLE WARRANTY, 4-YEAR 45 0.00 0.00 0.00 20018 TASER 7 BATTERY PACK, TACTICAL 54 0.00 0.00 0.00 Issued: 06/22/2020 Quote Expiration: 07/31/2020 Account Number: 109365 Axon Enterprise, Inc. 17800 N 85th St. Scottsdale, Arizona 85255 United States Phone: (800) 978-2737 Protect Life. PRIMARY CONTACT Quion Juniel Phone: (562) 799-4100 Email: qjuniel@sealbeachca.gov BILL TO Seal Beach Police Dept. -CA 211 Eighth Street Seal Beach, CA 90740 US SHIP TO Quion Juniel Seal Beach Police Dept. -CA 911 Seal Beach Boulevard Seal Beach, CA 90740 US SALES REPRESENTATIVE Travis Cole Phone: 480-463-2200 Email: tcole@taser.com Fax: 480-478-1636 Q-257815-44004.834TC 1 Year 1 (Continued) Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Hardware (Continued) 20041 TASER 7 BATTERY PACK WARRANTY, 4- YEAR 54 0.00 0.00 0.00 80090 TARGET FRAME, PROFESSIONAL, 27.5 IN. X 75 IN., TASER 7 1 0.00 0.00 0.00 20042 TASER 7 DOCK & CORE WARRANTY, 4- YEAR 1 0.00 0.00 0.00 70033 WALL MOUNT BRACKET, ASSY, EVIDENCE.COM DOCK 1 0.00 0.00 0.00 74200 TASER 7 6-BAY DOCK AND CORE 1 0.00 0.00 0.00 22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5- DEGREE) NS 135 0.00 0.00 0.00 22176 TASER 7 LIVE CARTRIDGE, CLOSE QUARTERS (12-DEGREE) NS 135 0.00 0.00 0.00 22179 TASER 7 INERT CARTRIDGE, STANDOFF (3.5-DEGREE) NS 50 0.00 0.00 0.00 22181 TASER 7 INERT CARTRIDGE, CLOSE QUARTERS (12-DEGREE) NS 50 0.00 0.00 0.00 Other 20237 TASER 7 CERTIFICATION BUNDLE PAYMENT 12 45 720.00 540.00 24,300.00 Not Eligible TASER 7 INSTRUCTO R COURSE VOUCHER Not Eligible TASER 7 INSTRUCTOR COURSE VOUCHER 1 0.00 0.00 0.00 Not Eligible TASER 7 MASTER INSTRUCTO R SCHOOL VOUC Not Eligible TASER 7 MASTER INSTRUCTOR SCHOOL VOUCHER 1 0.00 0.00 0.00 20135 OCULUS GO STANDALONE VIRTUAL REALITY HEADSET 1 0.00 0.00 0.00 20247 TASER 7 ONLINE TRAINING CONTENT ACCESS LICENSE 60 45 0.00 0.00 0.00 20249 VR EMPATHY DEVELOPMENT STARTER CONTENT ACCESS 60 45 0.00 0.00 0.00 80087 TASER 7 TARGET, CONDUCTIVE, PROFESSIONAL (RUGGEDIZED)1 0.00 0.00 0.00 Protect Life.Q-257815-44004.834TC 2 Year 1 (Continued) Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Other (Continued) 20120 TASER 7 INSTRUCTOR COURSE VOUCHER 4 495.00 0.00 0.00 Services 85147 CEW STARTER 1 2,750.00 0.00 0.00 Subtotal 24,300.00 Estimated Shipping 0.00 Estimated Tax 2,126.25 Total 26,426.25 Trade-In Credit Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Other 20104 TASER 7 TRADE-IN UPFRONT PURCHASE 45 0.00 0.00 0.00 Subtotal 0.00 Estimated Tax 0.00 Total 0.00 Spares Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Hardware 20008 TASER 7 HANDLE, YLW, HIGH VISIBILITY (GREEN LASER), CLASS 3R 1 0.00 0.00 0.00 20040 TASER 7 HANDLE WARRANTY, 4-YEAR 1 0.00 0.00 0.00 Subtotal 0.00 Estimated Tax 0.00 Total 0.00 Year 2 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Hardware 22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5- DEGREE) NS 90 0.00 0.00 0.00 22176 TASER 7 LIVE CARTRIDGE, CLOSE QUARTERS (12-DEGREE) NS 90 0.00 0.00 0.00 Protect Life.Q-257815-44004.834TC 3 Year 2 (Continued) Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Other 20237 TASER 7 CERTIFICATION BUNDLE PAYMENT 12 45 720.00 720.00 32,400.00 Subtotal 32,400.00 Estimated Tax 2,835.00 Total 35,235.00 Year 3 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Hardware 22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5- DEGREE) NS 90 0.00 0.00 0.00 22176 TASER 7 LIVE CARTRIDGE, CLOSE QUARTERS (12-DEGREE) NS 90 0.00 0.00 0.00 22177 TASER 7 HOOK-AND-LOOP TRN (HALT) CARTRIDGE, STANDOFF NS 90 0.00 0.00 0.00 22178 TASER 7 HOOK-AND-LOOP TRN (HALT) CARTRIDGE, CLOSE QUART NS 90 0.00 0.00 0.00 Other 20237 TASER 7 CERTIFICATION BUNDLE PAYMENT 12 45 720.00 720.00 32,400.00 Subtotal 32,400.00 Estimated Tax 2,835.00 Total 35,235.00 Year 4 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Hardware 22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5- DEGREE) NS 90 0.00 0.00 0.00 22176 TASER 7 LIVE CARTRIDGE, CLOSE QUARTERS (12-DEGREE) NS 90 0.00 0.00 0.00 Other 20237 TASER 7 CERTIFICATION BUNDLE PAYMENT 12 45 720.00 720.00 32,400.00 Subtotal 32,400.00 Estimated Tax 2,835.00 Total 35,235.00 Protect Life.Q-257815-44004.834TC 4 Year 5 Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Hardware 22175 TASER 7 LIVE CARTRIDGE, STANDOFF (3.5- DEGREE) NS 90 0.00 0.00 0.00 22176 TASER 7 LIVE CARTRIDGE, CLOSE QUARTERS (12-DEGREE) NS 90 0.00 0.00 0.00 Other 20237 TASER 7 CERTIFICATION BUNDLE PAYMENT 12 45 720.00 720.00 32,400.00 Subtotal 32,400.00 Estimated Tax 2,835.00 Total 35,235.00 Grand Total 167,366.25 Protect Life.Q-257815-44004.834TC 5 Summary of Payments Payment Amount (USD) Year 1 26,426.25 Trade-In Credit 0.00 Spares 0.00 Year 2 35,235.00 Year 3 35,235.00 Year 4 35,235.00 Year 5 35,235.00 Grand Total 167,366.25 Discounts (USD) Quote Expiration: 07/31/2020 List Amount 166,730.00 Discounts 12,830.00 Total 153,900.00 *Total excludes applicable taxes Protect Life.Q-257815-44004.834TC 6 Notes The parties agree that Axon is granting a credit of $8,100.00 (applied to Year 1 Payment) for trade-in of CEW hardware. This credit is based on a ship date range of 6/15/2020-6/30/2020, resulting in a 7/15/2020 contract start date. Any change in this ship date and resulting contract start date will result in modification of this credit value which may result in additional fees due to or from Axon. Purchase of TASER 7 are governed by the TASER 7 Agreement located at https://www.axon.com/legal/sales-terms-and-conditions and not the Master Services and Purchasing Agreement referenced below. Tax is subject to change at order processing with valid exemption. Axon’s Sales Terms and Conditions This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at www.axon.com/legal/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable.Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (i ncluding but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind t hat entity. If you do not have this authority, please do not sign this Quote. Signature:CustSIG Date:CustDate Name (Print):CustName Title:CustTitle PO# (Or write N/A):CustPo Please sign and email to Travis Cole at tcole@taser.com or fax to 480-478-1636 Thank you for being a valued Axon customer. For your convenience on your next order, please check out our online store buy.axon.com The trademarks referenced above are the property of their respective owners. Protect Life.Q-257815-44004.834TC 7 ***Axon Internal Use Only*** Review 1 Review 2 SFDC Contract #: Order Type: RMA #: Address Used: SO #: Comments: S7296-0001\1236808v1.doc PROFESSIONAL SERVICES AGREEMENT Between City of Seal Beach 211 8th Street Seal Beach, CA 90740 & Axon Enterprise, Inc. 17800 N. 85th Street Scottsdale, Arizona 85288 1(408)-502-6238 This Professional Service Agreement (“the Agreement”) is made as of July 20th 2020 (the “Effective Date”), by and between Axon Enterprise, Inc. (“Consultant”), a sole proprietor, and the City of Seal Beach (“City”), a California charter city, (collectively, “the Parties”). DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 2 S7296-0001\1236808v1.doc DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 2 of 11 S7296-0001\1236808v1.doc 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 ag ree as follows. AGREEMENT 1.0 Scope of Services 1.1. Consultant shall provide those services (“Services”) set forth in Consultant’s Quotes #Q-257815 and #Q-257975, attached hereto as 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. Consultant will also provide Services in accordance with Consultant’s Master Services and Purchasing Agreement attached hereto as Exhibit B. To the extent that there is any conflict between Exhibit B 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 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 This term of this Agreement shall commence as of the Effective Date and shall continue for a term of 5 years unless previously terminated as provided by this Agreement. 3.0 Consultant’s Compensation DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 3 of 11 S7296-0001\1236808v1.doc City will pay Consultant in accordance with rates shown on the fee schedule set forth in Exhibit A and B for Services but in no event will the City pay more than what is outlined in the exhibits. 4.0 Method of Payment 4.1. Consultant shall submit to the City yearly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 30 days of the end of the year. 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 th is Agreement within 10 days of the expiration date of the previous policy. 5.3. Notwithstanding the above, in the event of termination for any reason, the termination language in Section 17.3 of the Consultant’s Master Services and Purchasing Agreement shall apply. 6.0 Party Representatives 6.1. The City Manager is the City’s representative for purposes of this Agreement. 6.2. Thom Ruseva-Mahan 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: DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 4 of 11 S7296-0001\1236808v1.doc To City: City of Seal Beach 211 8th Street Seal Beach, California 90740 Attn: City Manager To Consultant: Axon Enterprise, Inc. 17800 N. 85th Street Scottsdale, Arizona 85255 800-978-2737 Attn: Legal 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 5 of 11 S7296-0001\1236808v1.doc 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 times 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 resp onsible 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. 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 DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 6 of 11 S7296-0001\1236808v1.doc to bind coverage on its behalf, and shall be on forms provided by t he 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 t he performance of this Agreement. Insurance is to be placed with i nsurers 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 versio n 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, employees, agents and volunte ers, 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 insured s with respect to the services or operations performed by or on beh alf 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 insu reds 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 responsib le. DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 7 of 11 S7296-0001\1236808v1.doc 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 Consu ltant, its employees, or its agents in connection with the performa nce of this Agreement, including without limitation the payment reasonable attorneys’ fees and other related costs and expenses, except for the extent such loss or damage arise from the 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 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. DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 8 of 11 S7296-0001\1236808v1.doc 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, o r 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. 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 Servic es, 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 DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 9 of 11 S7296-0001\1236808v1.doc 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, a ny 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 transa ction 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, 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. 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 DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA 10 of 11 S7296-0001\1236808v1.doc by his or her execution, the Consultant is formally bound to the provi sions 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 By: _________________________ Jill R. Ingram, City Manager Attest: By: _________________________ Gloria D. Harper, City Clerk Approved as to Form: By: _________________________ Craig A. Steele, City Attorney CONSULTANT By: _________________________ Name: _________________________ Its: _________________________ By: _________________________ Name: _________________________ Its: ________________________ DocuSign Envelope ID: 35472EC1-8F4B-409C-A490-7BD57B7D50DA General Counsel Isaiah Fields Robert Driscoll VP, Assoc. General Counsel Superion, LLC, A CentralSquare company Quote Prepared For: Quote Number: Q-00032454 Valid Until: 08/31/20 Quote Prepared By: Dan Fortney, Records Supervisor Amanda Ladenburger, Associate Account Manager Seal Beach Police Department CentralSquare Technologies 911 Seal Beach Blvd 4509 W. 58th Street Seal Beach, CA, 90740 Sioux Falls, SD 57108 (562) 799-4100 Ext. 1105 Phone: Fax: amanda.ladenburger@centralsquare.com Date: 06/22/20 Thank you for your interest in our company and our software and services solutions. Please review the below quote and feel free to contact Amanda Ladenburger with any questions. License Fees & Maintenance Product Name #Product Code Quantity License Fee Maintenance ONESolution CAD Taser Interface PS-OS-CAD-CADINTTSR-SW 1 15,000.00 3,000.00 Total 15,000.00 3,000.00 Professional Services Installation & Configuration Product Name #Product Code Hours Amount ONESolution Computer-Aided Dispatch Installation PS-OS-CAD-OSCADIN-PS 16 2,800.00 Total 2,800.00 Project Management Product Name #Product Code Hours Amount ONESolution Computer-Aided Dispatch Project Management PS-OS-CAD-OSCADPM-PS 8 1,280.00 Total 1,280.00 Total Professional Services 4,080.00 Add-On Quote Page 1 of 3 Product/Service Amount License Fees 15,000.00 Professional Services 4,080.00 Subtotal 19,080.00 USD Total Excluding Maintenace 19,080.00 USD Net Maintenance 3,000.00 USD Total with Maintenance 22,080.00 USD See Product notes in the Additional Information Section Payment terms as follows, unless otherwise notated below for Special Payment Terms by Product: Additional Terms: This Amendment will become effective as of the date first written above. Except as expressly provided in this Amendment, all terms and provisions of the existing Agreement between the Parties are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. License, Start-up and Third Party software and/or hardware Fees are due at execution. Training Fees and Travel Expenses are due as incurred. All other Professional Services will be Fixed Fee, due at execution. Custom Modifications and Third Party Product Implementation Services fees are due 50% on execution of this Quote and 50% due upon invoice, upon completion. Pricing for professional services provided under this quote is a good faith estimate based on the information available at the time of execution. The total amount may vary based on the actual number of hours of services required to complete the services. If required, additional services can be provided on a time and materials basis at CentralSquare's then-current hourly rates for the services at issue. For training and on-site project management sessions which are cancelled at the request of Customer within fourteen (14) days of the scheduled start date, Customer is responsible for entire price of the training or on-site project management plus incurred expenses. Do not pay from this form. Customer will be invoiced for the fees set forth after execution. If applicable, annual Access, Subscription and/or Cloud/Hosting Fees will be invoiced annually after the initial term. Maintenance Service and Support Fees (including third party products) are included with purchase for the initial term and will be invoiced annually after the initial term. Summary Page 2 of 3 Dan Fortney, Records Supervisor Seal Beach Police Department Authorized Signature: _________________________________________Printed Name: ____________________________________ Date: ________________________ Additional Information Section Product Notes: ONESolution CAD Taser Interface requires the related third party product.. --------------------------- Page 3 of 3 Agenda Item O AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Steve Myrter, P.E., Director of Public Works SUBJECT:Resolution Adjusting the Bidding Thresholds for Public Works Contracts and adjusting the City Manager’s Contract Authority for the Acquisition of Goods and Services ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7060: 1. Confirming the adjustment of bidding threshold for Public Works contracts to $34,476 pursuant to the City Charter Section 1010; and, 2. Adjusting the City Manager’s threshold to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services, or other items within the budget approved by City Council to $34,476 pursuant to City Charter 420 and Resolution 6384. BACKGROUND AND ANALYSIS: In March 2002, Section 1010 of the City Charter was amended to include a formal procedure to calculate the bidding threshold for Public Works contracts. The bidding threshold is to be adjusted annually based upon “computing the percentage difference between the current Engineering News Record (ENR) Construction Cost Index (CCI) – 20 City Average and the ENR for the previous June 1st”. The purpose of the adjustment is to allow the City to maintain its bidding threshold current with inflation. The City Charter specifies that the City Engineer shall calculate the required adjustment and the City Council confirm the calculation following a public hearing on the matter. In June 2013, the City Council adopted Resolution 6384 authorizing the City Manager to bind the City for the acquisition of equipment, materials, supplies, labor, services or other items included in the budget up to the amount for each acquisition equal to the bidding threshold amount for public works projects applicable under Section 1010 of the City Charter. 5 2 8 3 On August 12, 2019, the City Council adopted Resolution 6948 increasing the Public Works bidding threshold to $33,970 to account for CCI increase of 1.81 percent. Based on the June 2020 ENR publication, the CCI has increased 1.49 percent from 11268 to 11436. This increase includes one year of adjustments to the bidding threshold. A 1.49 percent increase would bring the bidding threshold from $33,970 to $34,476. This does not waive requirements of competitive bidding on projects. All projects over the proposed threshold of $34,476 would require formal bidding procedures and contracts per the City Charter and be awarded at a City Council meeting. Contracts for projects under the proposed threshold of $34,476 may be awarded pursuant to informal bidding procedures. The proposed adjustment to the Public Works bidding threshold would result in an increase in the City Manager’s threshold to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services, or other items within the budget approved by City Council to $34,476 pursuant to Resolution 6384. 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 the adjustment of bidding threshold for Public Works Contracts will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution as to form. FINANCIAL IMPACT: There are no financial impacts associated with the adjustment of bidding thresholds for Public Works Contracts or the increase in the City Manager’s contract authority. 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. 5 2 8 3 RECOMMENDATION: That the City Council adopt Resolution 7060: 1. Confirming the adjustment of bidding threshold for Public Works contracts to $34,476 pursuant to the City Charter Section 1010; and, 2. Adjusting the City Manager’s threshold to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services, or other items within the budget approved by City Council to $34,476 pursuant to City Charter 420 and Resolution 6384. 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 7060 B. ENR Construction Cost Index RESOLUTION 7060 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL CONFIRMING AN ADJUSTMENT TO THE BIDDING THRESHOLD FOR PUBLIC WORKS CONTRACTS TO $34,476 AND AUTHORIZING THE CITY MANAGER TO BIND THE CITY FOR THE ACQUISITION OF EQUIPMENT, MATERIALS, SUPPLIES, LABOR, SERVICES OR OTHER ITEMS INCLUDED WITHIN THE BUDGET TO $34,476, PURSUANT TO SECTIONS 1010 AND 420 OF THE CITY CHARTER AND CITY COUNCIL RESOLUTION 6384 WHEREAS, Section 420 of the City Charter states the City Council may authorize the City Manager by resolution or ordinance to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary limit upon such authority; and WHEREAS, in June 2013, the City Council adopted Resolution 6384 authorizing the City Manager to bind the City for the acquisition of equipment, materials, supplies, labor, services or other items included in the budget up to the amount for each acquisition equal to the bidding threshold amount for public works projects applicable under Section 1010 of the City Charter; and WHEREAS, Section 1010 of the City Charter requires the City Engineer to adjust the bidding threshold by computing the percentage difference between the current Engineering News Record (ENR) Construction Cost Index and the ENR for the previous June 1st; and, WHEREAS, the City Charter requires the City Council to review such adjustment at a public hearing and upon Council confirmation, the bidding threshold amount shall be the adjusted figure; and, WHEREAS, the ENR Construction Cost Index was 11268 for June 2019, and the bidding threshold was set at $33,970; and, WHEREAS, the ENR Construction Cost Index was 11436 for June 2020, representing a 1.49 percent increase, and raising the bidding threshold to $34,476; and, WHEREAS, on July 27, 2020, the City Council held a duly noticed public hearing regarding the proposed adjustment threshold. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: 5 2 0 7 Section 1. The City Council hereby finds all facts in the above recitals are true and correct and confirms the adjustment of the bidding threshold amount to $34,476 as required by City Charter Section 1010. Section 2. The City Council hereby adjusts the City Manager’s threshold to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council to $34,476, pursuant to the authority conferred by Section 420 of the City Charter and Resolution 6384. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July 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 7060 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July 2020. Gloria D. Harper, City Clerk +1.5% CCI +2.1% BCI +0.1% BCI +0.2% CCI 11.6 11.3 11.0 11.9 12.2 12.5 per/thousand INDEX VALUEANNUAL CONSTRUCTION COST INDEX 6.40 6.20 6.00 6.60 6.80 7.00 per/thousand INDEX VALUE0.20 0.10 0.00 0.30 0.40 0.50 % CHANGE.24 .12 0 .36 .48 .60 % CHANGEANNUAL BUILDING COST INDEX MONTHLY BUILDING COST % CHANGEMONTHLY CONSTRUCTION COST % CHANGE JUNE ’19 AUG.OCT.FEB.APR.JUNE ’20DEC. JUNE ’19 AUG.OCT.FEB.APR.JUNE ’20DEC. JUNE ’19 AUG.OCT.FEB.APR.JUNE ’20DEC. JUNE ’19 AUG.OCT.FEB.APR.JUNE ’20DEC. Inflation’s Pulse Year-to-year and monthly percent changes for ENR’s cost indexes Cost Index Review SOURCE: ENR INFLATION ANNUAL ESCALATION FOR COMMON LABOR REACHED 0.9% IN JUNE, WHILE SKILLED LABOR EXPERIENCED A 1.5% ESCALATION IN THE SAME PERIOD. +0.9% Common Labor Index CONSTRUCTION BUILDING SKILLED WAGES COMMON WAGES 2019 May 11230.01 1045.47 6111.77 904.65 10441.20 1025.62 23602.02 1139.41 June 11268.48 1049.05 6118.34 905.52 10482.96 1029.43 23743.63 1146.06 July 11292.80 1051.31 6131.42 907.56 10524.89 1033.10 23814.86 1149.04 Aug.11311.06 1053.01 6146.81 909.84 10526.99 1033.26 23822.00 1149.44 Sept.11311.24 1053.03 6146.98 909.86 10526.99 1033.26 23822.00 1149.44 Oct.11326.10 1054.41 6168.75 913.09 10548.04 1034.96 23822.00 1149.44 Nov.11380.88 1059.51 6179.22 914.64 10569.14 1036.52 23917.29 1154.16 Dec.11381.48 1059.57 6199.11 917.58 10621.99 1041.51 23917.29 1154.16 2020 Jan.11392.41 1060.58 6213.68 919.74 10626.24 1041.90 23917.29 1154.16 Feb.11396.02 1060.92 6217.29 920.27 10626.24 1041.90 23917.29 1154.16 Mar.11396.97 1061.01 6218.26 920.41 10626.24 1041.90 23917.29 1154.16 Apr.11412.67 1062.47 6233.93 922.73 10626.24 1041.90 23917.29 1154.16 May 11418.16 1062.98 6239.42 923.55 10626.24 1041.90 23917.29 1154.16 Jun.11436.23 1064.66 6246.69 924.62 10636.87 1043.39 23965.12 1156.32 1913 1967 1913 1967 1913 1967 1913 1967BASE YEAR Building Cost Index 1913=100 INDEX VALUE MONTH YEAR BUILDING COST 6246.69 +0.1%+2.1% SKILLED LABOR 10636.87 +0.1%+1.5% WAGE $/HR.58.80 +0.1%+1.5% The Building Cost Index is up 2.1% on an annual basis, while the monthly component increased 0.1%. Construction Cost Index 1913=100 INDEX VALUE MONTH YEAR CONSTRUCTION COST 11436.23 +0.2%+1.5% COMMON LABOR 23965.12 +0.2%+0.9% WAGE $/HR.46.04 +0.2%+0.9% The Construction Cost Index’s annual escalation is 1.5%, while the monthly component rose 0.2%. Materials Cost Index 1913=100 INDEX VALUE MONTH YEAR MATERIALS COST 3540.29 +0.1%+2.8% CEMENT $/TON 147.09 +0.5%+8.4% STEEL $/CWT 55.76 –0.4%+2.2% LUMBER $/MBF 614.26 +0.9%+4.3% The MCI rose 0.1% on a monthly basis, while the annual escalation rate increased 2.8%. +1.5%+0.1% JUNE 2020 JUNE 2020 +2.1 % JUNE 2020 MONTHLY INFLATION RATE ANNUAL INFLATION RATE ANNUAL INFLATION RATE ENR’s 20-city average cost indexes, wages and material prices. Historical data and details for ENR’s 20 cities can be found at ENR.com/economics CONSTRUCTION ECONOMICS 0601_CE_WK1.indd 1 5/27/20 1:30 AM 2019-2020 270 280 290 300 310 320 1992=100 PAVING ASPHALT AM J’20FJMS’19 ON D 2019-2020 150 153 154 156 158 160 1992=100 CONCRETE BLOCK AM J’20FJMS’19 ON D 2019-2020 190 195 200 205 210 215 1992=100 PORTLAND CEMENT AM J’20FJMS’19 ON D 2019-2020 365 367 369 371 373 375 1992=100 READY-MIX CONCRETE AM J’20FJMS’19 ON D Cement prices rose 2% in April after dropping 0.2% in March, according to the Bureau of Labor Statistics’ producer price index. Annual escalation for the index was 1.3% after sitting at 1.1% in March. ENR’s 20-city average monthly price for masonry cement fell 1% in June, with a yearly increase of 7.7%. All three types of concrete block experienced yearly increases. Masonry sand prices stayed flat this month, with yearly prices 3.5% above this time last year. All three types of ready-mix concrete had yearly increases. PRODUCER PRICE INDEX CEMENT Monthly Percent Change SOURCE: BUREAU OF LABOR STATISTICS ENR’s Materials Prices For June 2020 ASPHALT PAVING CONCRETE BLOCK PORTLAND CEMENT READY-MIX CONCRETE ASPHALT PRICES FELL 1.1% THIS MONTH, WHILE YEARLY PRICES ARE DOWN 6.8%. MONTHLY PRICES HELD STEADY, WHILE YEARLY PRICES ROSE 1.7%. MONTHLY PRICES FOR PORTLAND CEMENT INCREASED 0.6% THIS MONTH. READY-MIX CONCRETE PRICES SHOWED ROSE 0.6% SINCE LAST MONTH. +0.6% –1 .1% 0.0% +0.6% 1992=100 1992=100 1992=100 1992=100 SOURCE: ENR 2.0 1.5 2.5 1.0 0.5 -0.5 -1.0 -1.5 -2.0 -3.0 -2.5 0 3.0 PERCENTAGE+2.0% DJ’19 OAA’20F 20-CITY AVERAGE ASPHALT PAVING PG 58 TON 402.40 –1.1 –6.8 Cutback, MC800 TON 375.94 –0.1 –4.4 Emulsion, RAPID SET TON 357.15 0.0 –1.0 Emulsion, SLOW SET TON 368.30 0.0 –0.8 PORTLAND CEMENT Type one TON 147.99 +0.6 +7.7 MASONRY CEMENT 70-lb bag TON 10.78 –1.0 +3.3 CRUSHED STONE Base course TON 12.61 0.0 +22.4 Concrete course TON 11.78 +0.1 +8.6 Asphalt course TON 13.73 +5.4 +22.0 SAND Concrete TON 10.43 –0.1 +12.1 Masonry TON 12.38 0.0 +3.5 READY-MIX CONCRETE 3,000 psi CY 119.48 +0.6 +3.0 4,000 psi CY 138.19 –1.4 +3.8 5,000 psi CY 189.79 –0.9 +8.1 CONCRETE BLOCK Normal weight: 8” x 8” x 16”C 147.04 0.0 +1.7 Lightweight: 8” x 8” x 16”C 171.91 0.0 +1.1 12” x 8” x 16”C 182.99 0.0 +1.6 ITEM UNIT $PRICE %MONTH %YEAR CONSTRUCTION ECONOMICS 0601_CE_WK1.indd 2 5/27/20 1:30 AM Asphalt, Cement, Aggregate, Concrete, Block for June 2020 + OR – DENOTES PRICE HAS RISEN OR FALLEN SINCE PREVIOUS REPORT. QUOTES ARE DELIVERED PRICES FOR PORTLAND AND MASONRY CEMENT, CONCRETE BLOCK AND READY-MIX CONCRETE. PRICES FOR CRUSHED STONE AND SAND ARE FOB PLANT. SOME PRICES MAY INCLUDE TAXES OR DISCOUNTS. FURTHER PRODUCT SPECIFICATIONS INCLUDE RAPID-SET EMULSION, CRS2; SLOW-SET EMULSION, CSS1H; BASE COURSE, 1½’’ DOWN TO DUST, UNWASHED; CONCRETE COURSE, 1½’’ THROUGH #4, WASHED; ASPHALT COURSE, ½’’ THROUGH #4, UNWASHED; CONCRETE SAND, 2NS MEDIUM CLEAN; MASONRY SAND, 2NS FINE CLEAN; CONCRETE BLOCK, 2 CORE. QUANTITIES ARE GENERALLY TRUCKLOADS. City prices reflect quotes from single sources and can be volatile. They are not meant to be the prevailing price for a city. Data are a mix of list and transaction prices and may include ENR estimates. Do not compare prices between locations. Use city in- formation to analyze national trends. ITEM UNIT ATLANTA BALTIMORE BIRMINGHAM BOSTON CHICAGO CINCINNATI CLEVELAND DALLAS DENVER DETROIT ASPHALT PAVING PG 58 TON 422.46 –441.67 397.59 445.00 414.56 –451.00 –410.83 +418.00 417.90 +408.10 CUTBACK, MC800 TON 400.55 ––379.04 427.03 395.37 ––378.00 +392.45 397.11 388.00 EMULSION, RAPID SET TON +361.72 ––358.93 378.10 367.56 ––369.00 –358.98 369.58 355.50 EMULSION, SLOW SET TON +371.30 ––364.36 385.45 386.82 ––388.00 –371.07 371.40 411.00 PORTLAND CEMENT TYPE ONE TON +138.95 –142.75 116.91 134.25 +140.37 129.25 –128.80 134.76 128.89 +145.10 MASONRY CEMENT 70-LB BAG TON 10.00 –10.95 9.82 10.83 +11.05 –10.55 +10.20 10.45 10.97 11.15 CRUSHED STONE BASE COURSE TON 11.00 12.25 8.95 +11.18 10.33 12.75 12.50 10.88 11.42 6.45 CONCRETE COURSE TON 11.24 14.15 10.18 +11.57 11.75 11.45 8.29 10.92 +10.93 7.80 ASPHALT COURSE TON 12.07 14.35 10.60 +12.00 11.49 ––10.96 12.26 +11.41 9.58 SAND CONCRETE TON 9.36 17.50 –9.22 9.98 9.56 8.25 8.50 9.27 9.80 8.07 MASONRY TON 12.02 17.50 –10.89 11.71 +11.50 15.00 12.75 11.55 11.65 8.20 READY-MIX CONCRETE 3,000 PSI CY 120.59 –122.90 111.79 122.90 123.00 +125.92 –110.78 117.64 124.00 –115.30 4,000 PSI CY 133.80 –144.20 128.45 133.49 140.15 –141.80 –138.60 127.59 132.25 136.60 5,000 PSI CY 152.35 –236.10 159.20 163.35 175.60 –228.60 246.50 141.93 153.48 +234.30 CONCRETE BLOCK NORMAL WEIGHT: 8” x 8” x 16”C +151.94 163.00 136.91 148.30 147.50 125.00 184.00 146.26 150.00 121.00 LIGHTWEIGHT: 8” x 8” x 16”C +172.86 187.00 164.80 172.12 164.33 178.00 175.80 170.45 174.00 200.00 ITEM UNIT KANSAS CITY LOS ANGELES MINNEAPOLIS NEW ORLEANS NEW YORK PHILADELPHIA PITTSBURGH ST. LOUIS SAN FRANCISCO SEATTLE ASPHALT PAVING PG 58 TON –418.70 370.00 +410.20 405.42 –418.15 424.39 –432.00 –405.25 108.40 428.20 CUTBACK, MC800 TON 342.00 380.00 378.00 375.18 –385.02 431.68 377.04 388.50 145.00 407.00 EMULSION, RAPID SET TON 322.00 350.00 328.00 361.34 –362.00 372.47 314.20 378.00 355.00 366.35 EMULSION, SLOW SET TON 338.00 325.00 312.70 369.97 –367.89 390.55 314.20 404.00 362.00 395.74 PORTLAND CEMENT TYPE ONE TON +147.34 210.14 135.63 133.70 +135.58 137.41 –144.30 145.21 130.00 +131.65 MASONRY CEMENT 70-LB BAG TON +10.42 8.50 –11.55 9.99 10.45 11.07 –11.40 +1307 12.97 +10.15 CRUSHED STONE BASE COURSE TON 10.64 34.00 8.18 10.93 12.85 +12.22 10.60 8.00 26.00 10.47 CONCRETE COURSE TON 16.40 9.78 8.88 11.15 14.37 +11.70 10.38 7.91 26.00 10.73 ASPHALT COURSE TON 16.40 39.97 8.15 11.51 13.22 +12.56 9.52 9.00 24.00 11.82 SAND CONCRETE TON 9.15 29.15 6.10 10.48 11.05 9.83 7.86 6.50 9.00 9.91 MASONRY TON 16.00 10.56 8.32 11.02 11.68 10.96 9.42 9.05 26.00 11.80 READY-MIX CONCRETE 3,000 PSI CY –109.60 115.00 110.00 –119.40 123.94 118.59 +104.10 –109.60 165.00 119.60 4,000 PSI CY –142.60 120.00 –138.90 –134.56 140.52 137.76 –142.60 141.55 172.00 136.37 5,000 PSI CY 227.25 130.00 221.50 +158.07 171.00 +177.03 248.78 –226.86 177.00 166.82 CONCRETE BLOCK NORMAL WEIGHT: 8” x 8” x 16”C 163.00 145.00 110.00 +144.59 148.67 156.27 142.00 136.00 197.00 143.32 LIGHTWEIGHT: 8” x 8” x 16”C 142.00 131.00 187.00 +165.66 170.95 174.56 178.00 165.00 210.00 167.70 CONSTRUCTION ECONOMICS 0601_CE_WK1.indd 3 5/27/20 1:30 AM Agenda Item P AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Kelly A. Telford, CPA, Finance Director/Treasurer SUBJECT:Approval of the Annual Special Taxes for Community Facilities District No. 2002-01 "Heron Pointe" ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7061 approving the Fiscal Year 2020- 2021 special tax levy for Community Facilities District No. 2002-01 “Heron Pointe”. BACKGROUND AND ANALYSIS: On September 23, 2002, the City approved the establishment of Community Facilities District 2002-01 known as Heron Pointe (“the District”) and approved Ordinance No. 1490 authorizing the levy of special taxes within the District. However, the development was faced with various delays related to the discovery of a Native American burial site within the District’s boundaries. As a result, final Coastal Commission approval was not received until July 2005. Immediately upon receipt of final approval, the City issued $3,985,000 of CFD Bonds to fund the cost of various improvements within the District. Per the Official Statement dated June 5, 2015, the City issued $3,480,000 Special Tax Refunding Bonds, Series 2015 and scheduled the outstanding amount of the CFD Bonds issued in 2005 to be redeemed in full. The City contracted with Willdan Financial Services to calculate special taxes for the District for Fiscal Year 2020-2021. The special taxes collected are considered special revenue. Special revenue sources are legally restricted to specific purposes. As a result, this special tax is not included in the General Fund revenues. The special taxes will satisfy debt service on the Bonds. The method of assessment for the special taxes is described in the Amended Rate and Method of Apportionment section of the CFD Report prepared by Taussig and Associates and submitted to Council on January 12, 2004. The method of assessment defines two primary categories of property: Developed Property and Undeveloped Property. The category of Developed Property is further divided Page 2 7 8 6 into five separate special tax classifications that vary with land use (e.g. residential and non-residential) and floor area (in square feet). The Fiscal Year 2020-2021 maximum and actual special taxes per Unit/Acre are listed as follows: Community Facilities District No. 2002-01 Fiscal Year 2020-2021 Special Taxes for Developed and Undeveloped Property Tax Class Description Residential Floor Area Assigned/Maximum Special Tax per Unit/Acre FY 2020-2021 Actual Special Tax per Unit/Acre 1 Residential > 4,000 SF $6,521.62 $4,458.74 2 Residential 3,750 – 3,999 SF $6,190.05 $4,232.06 3 Residential 3,500 – 3,749 SF $5,973.07 $4,083.70 4 Residential < 3,500 SF $5,570.80 $0.00 5 Non- Residential NA $51,169.73 $0.00 NA Undeveloped NA $57,345.15 $0.00 Exhibit A of the resolution shows the Fiscal Year 2020-2021 special tax levy for each parcel being taxed. Total expenditures for 2020-2021 are estimated at $272,794. This estimate includes debt service payments of $252,956 and administrative expenses of $19,838. Total revenues from the special tax are estimated at $272,794 for Fiscal Year 2020-2021. No credit will be applied to the levy this year. 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. Page 3 7 8 6 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 7061 authorizing the 2020-2021 annual special taxes for the Communities Facilities District No. 2002-01 "Heron Pointe". SUBMITTED BY: NOTED AND APPROVED: Kelly Telford Jill R. Ingram Kelly Telford, CPA, Finance Director/Treasurer Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7061 RESOLUTION 7061 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE FISCAL YEAR 2020-2021 ANNUAL SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2002- 01 (HERON POINTE) WHEREAS, the City Council of the CITY OF SEAL BEACH (the “City”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in the City’s Community Facilities District No. 2002-01 (Heron Pointe) (the “District”), all as authorized pursuant to the terms and provisions of the “Mello- Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and WHEREAS, the City Council, by Ordinance as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said District; and WHEREAS, the City Council desires to establish the specific rate of the special tax to be collected for the next fiscal year. THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. That the above recitals are all true and correct. Section 2. That the special tax rates for each tax category to be used to generate special tax revenues, which will be collected to pay for the costs and expenses for the next fiscal year (2020-2021) for the District, is hereby determined and established as set forth in the attached, referenced and incorporated Exhibit “A”. Section 3. That the rate as set forth above does not exceed the amount as previously authorized by Ordinance of the City Council, and is not in excess of that as previously approved by the qualified electors of the District. Section 4. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. Section 5. All monies above collected shall be paid into the District funds. Section 6. The County Auditor is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked “public improvements, special tax” or by any other suitable designation, the installment of the special tax, and for the exact rate and amount of said tax, reference is made to the attached Exhibit “A”. Section 7. The County Auditor shall then, at the close of the tax collection period, promptly render to the City a detailed report showing the amount and/or amounts of such special tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection. Section 8. Special taxes are to be levied on all non-exempt parcels within the District. Should it be discovered that any taxable parcels are not submitted to the County Auditor for inclusion into the 2020-2021 Tax Roll subsequent to the submittal deadline of August 10, 2020, the City Council directs the City of Seal Beach staff or their agents to bill such parcels directly via U.S. mail using the rates as approved in Exhibit “A”. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July, 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 7061 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk Assessor's Parcel Number FY20-21 Special Tax Assessor's Parcel N umber FY20-21 Special Tax 199-201-01 4,232.06$ 199-201-39 4,083.70 199-201-02 4,083.70 199-201-40 4,232.06 199-201-03 4,458.74 199-201-41 4,083.70 199-201-04 4,083.70 199-201-42 4,232.06 199-201-05 4,232.06 199-201-43 4,083.70 199-201-06 4,458.74 199-201-44 4,458.74 199-201-07 4,232.06 199-201-45 4,232.06 199-201-08 4,458.74 199-201-46 4,458.74 199-201-09 4,083.70 199-201-47 4,232.06 199-201-12 4,458.74 199-201-48 4,083.70 199-201-13 4,083.70 199-201-49 4,232.06 199-201-14 4,232.06 199-201-50 4,083.70 199-201-15 4,083.70 199-201-51 4,458.74 199-201-16 4,458.74 199-201-52 4,232.06 199-201-17 4,083.70 199-201-53 4,458.74 199-201-18 4,458.74 199-201-54 4,232.06 199-201-19 4,083.70 199-201-55 4,458.74 199-201-20 4,458.74 199-201-56 4,232.06 199-201-21 4,232.06 199-201-57 4,458.74 199-201-22 4,458.74 199-201-58 4,232.06 199-201-23 4,232.06 199-201-59 4,083.70 199-201-24 4,232.06 199-201-60 4,232.06 199-201-25 4,232.06 199-201-61 4,458.74 199-201-26 4,083.70 199-201-62 4,458.74 199-201-27 4,458.74 199-201-63 4,083.70 199-201-28 4,083.70 199-201-64 4,232.06 199-201-29 4,232.06 199-201-65 4,083.70 199-201-30 4,458.74 199-201-66 4,458.74 199-201-31 4,232.06 199-201-67 4,083.70 199-201-36 4,232.06 199-201-68 4,232.06 199-201-37 4,083.70 199-201-69 4,232.06 199-201-38 4,458.74 199-201-70 4,458.74 272,793.28$ 64 Exhibit "A" City of Seal B each CFD 2002-01 Fiscal Year 2020-2021 Special Tax Levy Total FY 2020-2021 Special Tax Total Number of Parcels Taxed Agenda Item Q AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Kelly Telford, CPA, Finance Director/Treasurer SUBJECT:Approval of the Annual Special Taxes for Community Facilities District No. 2002-02 "Seal Beach Blvd./Lampson Avenue Landscape Maintenance District" ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7062 approving the Fiscal Year 2020- 2021 special tax levy for Community Facilities District No. 2002-02 “Seal Beach Blvd./Lampson Ave. Landscape Maintenance District”. BACKGROUND AND ANALYSIS: In July 2003, the City Council authorized a special tax to be levied within the Communities Facilities District No. 2002-02 known as Seal Beach Boulevard/Lampson Avenue Landscape Maintenance (“the District”). The special tax is levied against parcels on the east side of Seal Beach Blvd. to Lampson Avenue beginning north of the I-405 freeway off-ramp and ending at the City limits. The 2020-2021 annual special tax is being increased from the prior fiscal year by the annual change in the Consumer Price Index for all Urban Consumers in the Los Angeles-Riverside-Orange County area, as measured between March of the second fiscal year prior to that fiscal year and March of the fiscal year immediately preceding that fiscal year. Only parcels located within the established District are charged this special tax for landscape maintenance. The special tax is calculated per gross land acreage multiplied by the land area of the parcel. The special tax rates for each area of the District are illustrated as follows: (Intentionally Left Blank) Page 2 7 8 7 Community Facilities District No. 2002-02 Special Tax Rates Fiscal Year 2020-2021 Tax Area Special Tax Rates A $947.06 B $124.69 C $16,922.46 The special taxes collected are considered special revenue. Special revenue sources are legally restricted to specific purposes, in this case, the landscape maintenance of public properties within the District boundaries; and therefore, are not included in the General Fund revenues. Total revenues from the special tax are estimated at $186,061 for Fiscal Year 2020-2021. 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. RECOMMENDATION: That the City Council adopt Resolution 7062 authorizing the 2020-2021 annual special taxes for the Communities Facilities District No. 2002-02 "Seal Beach Blvd./Lampson Avenue Landscape Maintenance District". Page 3 7 8 7 SUBMITTED BY: NOTED AND APPROVED: Kelly Telford Jill R. Ingram Kelly Telford, CPA, Finance Director/Treasurer Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7062 RESOLUTION 7062 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING COMMUNITY FACILITIES DISTRICT NO. 2002-02 ESTABLISHING ANNUAL SPECIAL TAX FOR FISCAL YEAR 2020-2021 WHEREAS, the City Council of the CITY OF SEAL BEACH (hereinafter referred to as the “Agency”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. This Community Facilities District shall hereinafter be referred to as “the District”; and, WHEREAS, this City Council, by Ordinance as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said Community Facilities Districts, and this City Council is desirous to establish the specific rate of the special tax to be collected for the next fiscal year. THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. That the above recitals are all true and correct. Section 2. That the special tax rates for each tax category to be used to generate special tax revenues, which will be collected to pay for the costs and expenses for the next fiscal year (2020-2021) for the referenced District, is hereby determined and established as set forth in the attached, referenced and incorporated Exhibit “A”. Section 3. That the rate as set forth above does not exceed the amount as previously authorized by Ordinance of this Council, and is not in excess of that as previously approved by the qualified electors of the District. Section 4. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. Section 5. All monies above collected shall be paid into the District funds. Section 6. The County Auditor is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked “public improvements, special tax” or by any other suitable designation, the installment of the special tax, and for the exact rate and amount of said tax, reference is made to the attached Exhibit “A”. Section 7. The County Auditor shall then, at the close of the tax collection period, promptly render to this Agency a detailed report showing the amount and/or amounts of such special tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection. Section 8. Special taxes are to be levied on all non-exempt parcels within the District. Should it be discovered that any taxable parcels are not submitted to the County Auditor for inclusion into the 2020-2021 Tax Roll subsequent to the submittal deadline of August 10, 2020, the City Council directs the City of Seal Beach staff or their agents to bill such parcels directly via U.S. mail using the rates as approved in Exhibit “A”. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July, 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 7062 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk Exhibit “A” Community Facilities District No. 2002-02 Special Tax Rates Fiscal Year 2020-2021 Tax Area SPECIAL TAX RATES A $947.06 B $124.69 C $16,922.46 Agenda Item R AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Kelly Telford, CPA, Finance Director/Treasurer SUBJECT:Approval of the Annual Special Taxes for Community Facilities District No. 2005-01 "Pacific Gateway Business Center" ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7063 approving the Fiscal Year 2020- 2021 special tax levy for Community Facilities District No. 2005-01 “Pacific Gateway Business Center”. BACKGROUND AND ANALYSIS: In January 2006, the City approved the establishment of Community Facilities District No. 2005-01 known as the Pacific Gateway Business Center (“the District”). On February 13, 2006 the City Council approved Ordinance No. 1542 levying the special taxes within the District. Subsequently, in May 2006 the City issued $8,800,000 of CFD Bonds to fund the costs of various improvements within the District. Per the Official Statement dated January 6, 2016, the City issued $8,450,000 Special Tax Refunding Bonds, Series 2016 and scheduled the outstanding amount of the CFD Bonds issued in 2006 to be redeemed in full. The City contracted with Willdan Financial Services to calculate the special taxes for the District for Fiscal Year 2020-2021. The special taxes collected are considered special revenue. Special revenue sources are legally restricted to specific purposes. As a result, this special tax is not included in the General Fund revenues. Special taxes were segregated into two groups: A and B. Special Tax A will satisfy debt service on the Bonds (“Debt Service”) and Special Tax B will satisfy costs related to the maintenance of parks, parkways and open space within the District (“Landscape Maintenance”). Exhibit “A” of the resolution shows the Fiscal Year 2020-2021 special tax levy for each parcel being taxed. The method of assessment for Special Taxes A & B is described in the Rate and Method of Apportionment section of the Official Statement. The method of Page 2 7 8 8 assessment defines two primary categories of property: Developed Property and Undeveloped Property. Special Tax A allows for a maximum assessment rate of $19,788.30 per Acre on Developed Property within the District. This rate is to be increased by an amount equal to two percent (2%) for the following Fiscal Year (2020-2021). The Fiscal Year 2020-2021 maximum and actual Special Tax A per Acre is listed as follows: Community Facilities District No. 2005-01 Fiscal Year 2020-2021 Special Tax A for Developed and Undeveloped Property Description Maximum Special Tax A per Acre FY 2020-2021 Actual Special Tax A per Acre Developed Property $19,788.30 $12,020.17 Undeveloped Property $20,042.67 $0.00 Total expenditures for 2020-2021 are estimated at $540,066. This estimate includes debt service payments of $517,250 and administrative expenses of $22,816. Total revenues from Special Tax A are estimated at $540,066 for Fiscal Year 2020-2021. No credit will be applied to the levy this year. The maximum Landscape Maintenance special tax for Fiscal Year 2020-2021 is $3,126.45 per Acre within the District. This rate is to be increased by an amount equal to two percent (2%) for the following Fiscal Year (2020-2021). The Fiscal Year 2020-2021 maximum and actual Special Tax B per Acre are listed as follows: Community Facilities District No. 2005-01 Fiscal Year 2020-2021 Special Tax B for Developed and Undeveloped Property Description Maximum Special Tax B per Acre FY 2020-2021 Actual Special Tax B per Acre Developed Property $3,126.45 $1,500.14 Undeveloped Property $3,126.45 $0.00 Total expenditures for 2020-2021 are estimated at $67,402. Total revenues from Special Tax B are estimated at $67,402 for Fiscal Year 2020-2021. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. Page 3 7 8 8 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 7063 authorizing the 2020-2021 annual special taxes for the Communities Facilities District No. 2005-01 “Pacific Gateway Business Center”. SUBMITTED BY: NOTED AND APPROVED: Kelly Telford Jill R. Ingram Kelly Telford, CPA, Finance Director/Treasurer Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7063 RESOLUTION 7063 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING COMMUNITY FACILITIES DISTRICT NO. 2005-01 (PACIFIC GATEWAY BUSINESS CENTER) ESTABLISHING ANNUAL SPECIAL TAX FOR FISCAL YEAR 2020-2021 WHEREAS, the City Council of the CITY OF SEAL BEACH (the “City”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in the City’s Community Facilities District No. 2005-01 (Pacific Gateway Business Center) (the “District”), all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and WHEREAS, the City Council, by Ordinance as authorized by Section 53340 of the Government Code of the State of California, has authorized the levy of a special tax to pay for costs and expenses related to said District; and WHEREAS, the City Council desires to establish the specific rate of the special tax to be collected for the next fiscal year. THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. That the above recitals are all true and correct. Section 2. That the special tax rates for each tax category to be used to generate special tax revenues, which will be collected to pay for the costs and expenses for the next fiscal year (2020-2021) for the District, is hereby determined and established as set forth in the attached, referenced and incorporated Exhibit “A”. Section 3. That the rate as set forth above does not exceed the amount as previously authorized by Ordinance of the City Council, and is not in excess of that as previously approved by the qualified electors of the District. Section 4. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the Tax Collector is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. Section 5. All monies above collected shall be paid into the District funds. Section 6. The County Auditor is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land effected in a space marked “public improvements, special tax” or by any other suitable designation, the installment of the special tax, and for the exact rate and amount of said tax, reference is made to the attached Exhibit “A”. Section 7. The County Auditor shall then, at the close of the tax collection period, promptly render to the City a detailed report showing the amount and/or amounts of such special tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection. Section 8. Special taxes are to be levied on all non-exempt parcels within the District. Should it be discovered that any taxable parcels are not submitted to the County Auditor for inclusion into the 2020-2021 Tax Roll subsequent to the submittal deadline of August 10, 2020 the City Council directs the City of Seal Beach staff or their agents to bill such parcels directly via U.S. mail using the rates as approved in Exhibit “A”. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 27th day of July, 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 7063 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk T r act Ass es sor 's Par ce l Number FY20-21 Spe cia l T ax 16375 09 5-791-0 1 $43 ,805.80 16375 09 5-791-0 2 44 ,887.44 16375 09 5-791-0 3 60 ,571.00 16375 09 5-791-0 4 74 ,361.74 16375 09 5-791-0 5 57 ,866.96 16375 09 5-791-0 6 42 ,859.40 16375 09 5-791-0 7 43 ,535.40 16375 09 5-791-1 1 1 24 ,927.76 16375 09 5-791-1 2 73 ,280.10 16375 09 5-791-1 3 41 ,372.16 Total Fiscal Year 20-21 Special Tax:$607,467.76 Total Number of Parcels Taxed:10 "Exhibit A" City of Seal Beach CFD No. 2005-01 FY 2 02 0-2021 Sp ec ial T ax Le vy Agenda Item S AGENDA STAFF REPORT DATE:July 27, 2020 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Kelly A. Telford, CPA, Finance Director/Treasurer SUBJECT:Ratification of Certification for Receipt of Funds for the State of California Coronavirus Relief Funds for Necessary Expenditures Incurred Due to the Public Health Emergency with Respect to COVID-19 ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7064 ratifying a Certification of Receipt of Funds which serves as the application to the State of California for coronavirus relief funds to reimburse the City for necessary expenditures incurred due to the public health emergency with respect to COVID-19. BACKGROUND AND ANALYSIS: Based on the state’s population, the State of California received a total of $15.3 billion Coronavirus Relief Funds (CRF) provided in the federal CARES Act, with $9.5 billion paid to the State and $5.8 billion paid to cities and counties with populations over 500,000. The Budget authorizes the Department of Finance to allocate $1.8 billion of the state’s share of CRF to counties and cities, of which $500 million has been allocated to cities. The Department of Finance has issued an application for cities to receive their direct allocation from the approved $500 million of city CARES Act funding. The City of Seal Beach has been allocated $308,580. Funds are to be used by October 30, 2020 and are applicable for eligible COVID-19 expenses incurred starting on March 1, 2020. The identified CARES Act funding has no additional limitations and only requires compliance with the provisions of the CARES Act, however the period of availability is shorter than the CARES Act funding that has previously been allocated through the County of Orange. Due to the need to quickly execute the Certification, City Manager Ingram signed the Agreement on July 3, 2020 under her authority as a result of the related COVID-19 local emergency declaration. The attached resolution provides formal Page 2 8 0 8 ratification of the Certification. The Certification provides for the State to disburse the first portion of funds to the City. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: Ratification of the Certification will confirm the City’s intent to receive $308,580 in CARES Act funding from the State of California. Use of these funds is restricted by the CARES Act and is anticipated to assist with costs the City has incurred related to COVID-19 that are not eligible for reimbursement from FEMA. 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 7064 ratifying a Certification of Receipt of Funds which serves as the application to the State of California for coronavirus relief funds to reimburse the City for necessary expenditures incurred due to the public health emergency with respect to COVID-19. SUBMITTED BY: NOTED AND APPROVED: Kelly A. Telford Jill R. Ingram Kelly A. Telford, CPA, Finance Director/Treasurer Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7064 B. Certification of Receipt of Funds for the State of California CARES Act Funds 5 2 7 1 RESOLUTION 7064 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL RATIFYING THE CITY MANAGER’S CERTIFICATION FOR RECEIPT OF FUNDS PURSUANT TO SECTIONS (2) OR (3) OF SUBDIVISION (d) OF CONTROL SECTION 11.90 OF THE BUDGET ACT OF 2020 FOR CITY OF SEAL BEACH TO RECEIVE CARES ACT FUNDING AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS FOR THE RECEIPT OF SUCH FUNDS WHEREAS, Seal Beach Municipal Code Section 3.25.020 empowers the City Manager as the Director of Emergency Services to proclaim the existence or threatened existence of a local emergency when said city is affected or likely affected by a public calamity and the City Council is not in session, and, WHEREAS, on March 4, 2020 Governor Gavin Newsom declared a State of Emergency in the State of California due to the spread of the COVID-19 virus and ordered local governments, businesses and residents to prepare for the fight against the virus; and, WHEREAS, on March 13, 2020 the City Manager/Emergency Services Director of the City of Seal Beach proclaimed a local emergency to help the City and the region prepare for and respond to the public health crisis created by the spread of the COVID- 19 virus, which Proclamation was later ratified and confirmed by the City Council; and, WHEREAS, on March 13, 2020, the President of the United States also declared a national emergency, joining the State of California and the County of Orange in making resources available to fight the spread of the virus and imposing or suggesting certain restrictions; and, WHEREAS, the City of Seal Beach has expended a significant amount of City funds in the fight against the COVID-19 virus and in helping residents, businesses and City staff cope with the emergency; and, WHEREAS, as required by applicable law, the City has been accounting for all such expenditures to track the amount of City resources that have been expended and continue to be expended; and, WHEREAS, based on population, the State of California has allocated $308,580.00 in federal CARES Act funds to the City of Seal Beach for eligible COVID-19 expenses incurred since March 1, 2020; and, WHEREAS, due to short application deadlines set by the State, the City Manager executed the certification attached hereto as Exhibit A on behalf of the City of Seal Beach. NOW, THEREFORE, the Seal Beach City Council does hereby resolve and proclaim as follows: 5 2 7 1 1. The City Manager’s execution of the Certification for Receipt of Funds Pursuant to Paragraphs (2) or (3) of Subdivision (d) of Control Section 11.90 of the Budget Act of 2020, attached hereto as Exhibit A, is hereby ratified. 2. The City Manager is hereby authorized to take such further steps, and execute any additional documents she deems necessary to facilitate the City’s receipt of CARES Act funding, or other State, federal or County reimbursements and grants for expenses arising out of the COVID-19 emergency. 3. The City Manager shall publicly report when such funds are received by the City. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the July 27, 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 APPROVED AS TO FORM: ___________________________ Craig A. Steele, City Attorney 5 2 7 1 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 7064 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a special meeting held on the 27th day of July, 2020. Gloria D. Harper, City Clerk CERTIFICATION FOR RECEIPT OF FUNDS PURSUANT TO PARAGRAPHS (2) OR (3) OF SUBDIVISION (d) OF CONTROL SECTION 11.90 OF THE BUDGET ACT OF 2020 I, Jill Ingram, am the chief executive or authorized designee of the City of Seal Beach, and I certify that: 1. I have the authority on behalf of City of Seal Beach to request payment from the State of California ('State') pursuant to the applicable provisions of subdivision (d) of Control Section 11.90 of the Budget Act of 2020. 2. I understand the State will rely on this certification as a material representation in making a direct payment to City of Seal Beach. 3. The City of Seal Beach 's proposed uses of the funds provided as direct payment under the applicable provisions of subdivision (d) of Control Section 11.90 of the Budget Act of 2020 will be used only for costs that: a. Are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19) b. Were not accounted for in the budget most recently approved as of March 27, 2020, for the City of Seal Beach c. Were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. 4. The City of Seal Beach agrees to do all of the following as a condition of receipt of funds: a. Adhere to federal guidance and the state’s stay-at-home requirements and other health requirements as directed in gubernatorial Executive Order N-33-20, any subsequent Executive Orders or statutes, and all California Department of Public Health orders, directives, and guidance in response to COVID-19 emergency. b. Use the funds in accordance with all applicable provisions of subdivision (d) of Control Section 11.90 of the Budget Act of 2020. c. Report on expenditures and summarize regional collaboration and non- duplication of efforts within the region by September 1, 2020, and return any funds that are unspent by October 30, 2020 (unless extended by the Department of Finance based on reported expenditures to date), and repay the state for any cost disallowed after federal review. d. Retain records to support reported COVID-19 eligible expenditures and participate in audits as outlined by the federal government and State. CERTIFICATION FOR RECEIPT OF FUNDS PURSUANT TO PARAGRAPHS (2) OR (3) OF SUBDIVISION (d) OF CONTROL SECTION 11.90 OF THE BUDGET ACT OF 2020 By: Jill R.Ingram Signature: ____________________________ Title: City Manager Date: 7/3/2020 The completed certification must be submitted by email to: CRFApplications@dof.ca.gov Certifications must be received by no later than 11:59 p.m. Pacific Daylight Time on July 10, 2020. Certifications received after that time may be disallowed. The subject line of the email shall only contain the name of the local government entity (i.e. City of xxx or County of xxx).