Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Agenda Packet_04122021
•F •SE At '•. A G E N D A � iss MEETING OF THE CITY COUNCIL Monday, April 12, 2021 - 7:00 PM ALL COUNCIL MEMBERS AND STAFF WILL PARTICIPATE VIA TELECONFERENCE JOE KALMICK MAYOR First District MIKE VARIPAPA MAYOR PRO TEM Third District SCHELLY SUSTARSIC COUNCIL MEMBER Fourth District THOMAS MOORE COUNCIL MEMBER Second 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 on the City's website at www.sealbeachca.gov. City Council meetings are broadcast live on Seal Beach TV3 and on the City's website www. seal beachca.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 April 12, 2021. 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: 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 . 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 • Seal Beach COVID-19 Local Emergency Review • OCTA/405 Partners Update • Recognition of Kevin Ortiz • National Public Safety Dispatcher Week — April 11-17 • Tsunami Preparedness PUBLIC COMMUNICATIONS (VIA EMAIL ONLY) At this time members of the public may address the Council regarding the items on this City Council 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 April 12, 2021. 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 March 22, 2021 City Council Minutes - That the City Council approve the minutes of the Regular City Council meeting held on March 22, 2021. B. Demands on City Treasury (Fiscal Year 2021) — April 12, 2021 - Ratification. C. Resolution Denouncing Stigmatization, Racism, Hate, and Xenophobia Against Members of the Asian American and Pacific Islander Community - That the City Council approve Resolution 7130 denouncing stigmatization, racism, hate and xenophobia against members of the Asian American and Pacific Islander community. D. City of Seal Beach Annual Audit Reports for Fiscal Year Ended June 30, 2020 - That the City Council receive and file the following documents for fiscal year ending June 30, 2020: A. Comprehensive Annual Financial Report B. Audit Communication Letter C Report on Internal Control D. Appropriations (GANN) Limit Agreed -Upon Procedures Report E. Approving Amendments to the Professional Services Agreements with Mr. C's Towing and Country City Towing - That the City Council adopt Resolution 7131: 1. Approving Amendment No. 1 to the Professional Services Agreement dated April 9, 2018 with Mr. C's Towing to extend their services until April 9, 2024; and, 2. Authorizing the City Manager to Execute Amendment No. 1. That the City Council adopt Resolution 7132: 1. Approving Amendment No. 1 to the Professional Services Agreement dated April 9, 2018 with Country City Towing to extend their services until April 9, 2024; and, 2. Authorizing the City Manager to Execute Amendment No. 1. F. Awarding and Authorizing the City Manager to Execute Professional Services Agreements with G.M. Sager Construction Co., Inc. and Hardy & Harper, Inc. for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services - That the City Council adopt Resolution 7133: 1. Approving and awarding a professional services agreement with G.M. Sager Construction Co., Inc., in the amount of $300,000 to provide On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services for a three-year term; and, 2. Approving and awarding a professional services agreement with Hardy & Harper, Inc., in the amount of $300,000 to provide On - Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services for a three-year term; and, 3. Authorizing and directing the City Manager to execute the Agreements; and, 4. Authorizing the City Manager the option to extend any or all of the Agreements up to two (2) additional one-year terms after its original term for a not -to -exceed amount of $100,000 per additional term. G. Awarding and Authorizing Execution of a Public Works Agreement with J&L Constructors, Inc. for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107 - That the City Council adopt Resolution 7134: 1. Approving plans, specifications, and contract documents for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107; and, 2. Approving and awarding a public works agreement to J&L Constructors, Inc., in the amount of $59,900, waiving minor bid irregularities, and rejecting all other bids; and, 3. Authorizing the City Manager to execute the public works agreement for the Navy Reservoir External Cathodic Protection System Improvements to J&L Constructors, Inc.; and, 4. Authorizing the City Manager to approve additional work requests up to $10,000 and inspection services up to $10,100 in connection with the Project, in the cumulative not -to -exceed amount of $80,000; and, 5. Approving Budget Amendment BA 21-10-01 in the amount of $80,000 for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107. H. Notice of Completion for Beach Yard Perimeter Wall Improvements, CIP BP2002 - That the City Council adopt Resolution 7135: 1. Accepting the Beach Yard Perimeter Wall Improvements, CIP BP2002, by Horizons Construction Company Int'I, Inc. of $69,285.26; and, 2. Directing the City Clerk to file a "Notice of Completion" with the Orange County Clerk -Recorder within fifteen (15) days from the date of acceptance and to release retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. I. Notice of Completion for FY 2019-2020 Annual Local Paving Program, CIP ST2002 - That the City Council adopt Resolution 7136: 1. Accepting the FY 2019-2020 Annual Local Paving Program, CIP ST2002 by Hardy & Harper, Inc. in the amount of $324,877.96; and, 2. Directing the City Clerk to file a "Notice of Completion" with the Orange County Clerk -Recorder within fifteen (15) days from the date of acceptance and to release retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. J. Awarding and Authorizing Execution of a Public Works Agreement with Vincor Construction, Inc. for the Police Department Outside Locker Replacement Project, CIP BG2103 - That the City Council adopt Resolution 7137: 1. Approving the contract documents for the Police Department Outside Locker Replacement Project, BG2103; and, 2. Approving and awarding a public works agreement to Vincor Construction, Inc. in the amount of $49,650.85, 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 a public works agreement for construction services to Vincor Construction, Inc.; and, 4. Authorizing the City Manager to approve additional work requests up to $5,000, and inspection services up to $5,000, in connection with the Project, in the cumulative not -to -exceed amount of $10,000. K. Awarding and Authorizing Execution of a Public Works Agreement with Sialic Contractors Corporation dba Shawnan for FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103 - That the City Council adopt Resolution 7138: 1. Approving plans, specifications, and contract documents for the FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103; and, 2. Approving and awarding a public works agreement to Sialic Contractors Corporation dba Shawnan, in the amount of $505,882, and waive minor bid irregularities and reject all other bids; and, 3. Authorizing the City Manager to execute the public works agreement for the FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive) to Sialic Contractors Corporation dba Shawnan; and, 4. Authorizing the City Manager to approve additional work requests up to $50,000 and inspection services up to $20,000 in connection with the Project, in the cumulative not -to -exceed amount of $70,000; and, 5. Approving Budget Amendment BA 21-10-02 in the amount of $175,882 for the FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC HEARING — None UNFINISHED / CONTINUED BUSINESS — None NEW BUSINESS L. Approving Budget Amendment 21-10-03 to Increase General Fund Appropriations to Pay for Utility Costs for City Accounts - That the City Council adopt Resolution 7139: 1. Approving Budget Amendment 21-10-03 to increase appropriations to pay for water, sewer, street sweeping and tree trimming for City utility accounts for Fiscal Year 2020-21; and, 2. To repay the Water Fund, Sewer Fund and General Fund for utility costs in Fiscal Years 2019-20, 2018-19, 2017-18, 2016-17 and 2015-16. ADJOURNMENT Adjourn the City Council to Monday, April 26, 2021 at 5:30 p.m. to meet in closed session, if deemed necessary. C A t \v V� K i I i x QO CIM9 of .al ach S fa I -e of C a lifo r mia "National Public Safety Telecom municators Week" April 11- 17, 2021 WHEREAS, emergencies can occur at any time that require police, fire or emergency medical services; and, WHEREAS, when an emergency occurs the prompt response of police officers, firefighters and paramedics is critical to the protection of life and preservation of property; and, WHEREAS, the safety of our police officers is dependent upon the quality and accuracy of information obtained from citizens who telephone the West Cities Police Communications Center; and, WHEREAS, Public Safety Dispatchers are the first and most critical contact our citizens have with emergency services; and, WHEREAS, Public Safety Dispatchers are the single vital link for our police officers and firefighters by monitoring their activities by radio, providing them information and insuring their safety; and, WHEREAS, the Dispatchers of the West Cities Police Communications have contributed substantially to the apprehension of criminals, suppression of fires and treatment of patients; and, WHEREAS, each of our Dispatchers has exhibited compassion, understanding and professionalism during the performance of their job in the past year; NOW, THEREFORE, BE IT PROCLAIMED, that the City Council of the City of Seal Beach declares the week of April 11 through 17, 2021 to be National Public Safety Telecommunicators Week in Seal Beach, in honor of the men and women whose diligence and professionalism keep our city and citizens safe. IN WITNESS WHEREOF, I hereby affix my signature and the seal of the City of Seal Beach this twelfth day of April in the year Two Thousand and Twenty-one. Joe Kalmick, Mayor Mayor Pro Tem: Mike Varipapa City Council Members: Sandra Massa-Lavitt Thomas Moore Schelly Sustarsic i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Gloria D. Harper, City Clerk SUBJECT: Approval of the March 22, 2021 City Council Minutes SUMMARY OF REQUEST: That the City Council approve the minutes of the Regular City Council meeting held on March 22, 2021. 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. Agenda Item A RECOMMENDATION: That the City Council approve the minutes of the Regular City Council meeting held on March 22, 2021. SUBMITTED BY: Gloria D. Harper Gloria D. Harper, City Clerk Prepared by: Dana Engstrom, Deputy City Clerk ATTACHMENTS: A. Minutes - Regular Session Page 2 NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager Seal Beach, California March 22, 2021 The City Council met in Regular Session at 7:02 p.m. via teleconference. ROLL CALL Present: Mayor Kalmick Council Members: Varipapa, Moore, Sustarsic, Massa-Lavitt Absent: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Philip L. Gonshak, Chief of Police Joe Bailey, Chief, 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 Ron Roberts, Orange County Fire Authority, Division Chief APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES City Manager Ingram pulled Item K to allow staff to present this item. City Clerk Harper announced that three (3) supplemental communications were received after posting of the agenda regarding various agenda items that were distributed to City Council and made available to the public. Council Member Sustarsic moved, second by Council Member Massa-Lavitt, to approve the agenda. City Clerk Harper took a roll call vote to approve the agenda. AYES: Kalmick, Varipapa, Moore, Sustarsic, Massa-Lavitt NOES: None ABSENT: None ABSTAIN: None Motion carried PRESENTATIONS / RECOGNITIONS • Seal Beach COVID-19 Local Emergency Review • Sexual Assault Awareness Month Proclamation — April 2021 • DMV/Donate Life Month Proclamation — April 2021 ORAL COMMUNICATIONS Mayor Kalmick opened oral communications. City Clerk Harper announced that two (2) email communications were received and distributed to Council via email and uploaded to the City's website. Mayor Kalmick then closed oral communications. CITY ATTORNEY REPORT City Attorney Steele had no items to report. CITY MANAGER REPORT City Manager Ingram announced that the City of Seal Beach, along with Mayor Kalmick, is pleased to announce that the cities of Cypress and Los Alamitos will be hosting the second live/virtual Town Hall meeting on Wednesday, March 24, 2021 from 12-1 pm. Additional information can be found on the City's website or by calling the City Hall's main line at 562-431-2527. Additionally, she announced that the City's Strategic Planning Workshop will be held virtually on Wednesday, March 31, 2021 at 9am. COUNCIL COMMENTS Council Member Moore indicated he will be joining the Seal Beach Police Department on Facebook Live for Coffee with a Cop on Wednesday, March 24, 2021 at 6pm. He provided information on an upcoming Orange County Transportation Authority 405 Project update and will be providing more information in his newsletter. Council Member Massa-Lavitt indicated that she attended an Orange County Vector Control District meeting where they continued the conversation of discussing the feasibility of relocating their headquarters to accommodate their entire operations or reconstruct their current facility. She noted that the Orange County Sanitation District continues to provide improvements to their facilities. Council Member Sustarsic had no comments. Mayor Pro Tem Varipapa had no comments. Mayor Kalmick indicated he had the opportunity to spend a few hours on St. Patrick's Day with the Police Department walking Main Street - which appeared to be very calm. He attended a meeting with the Navy to get an update on a few of his concerns, including an update on the wharf project and the potential of a Navy property lease at the northeast corner of Pacific Coast Highway and Seal Beach Boulevard. He recognized and wished Virginia Haley a Happy 104th Birthday. COUNCIL ITEMS There were no Council Items. CONSENT CALENDAR Council Member Massa-Lavitt moved, second by Council Member Sustarsic, to approve the recommended actions on the consent calendar with exception of Item K pulled for separate consideration. A. Approval of the March 8, 2021 City Council Minutes - That the City Council approve the minutes of the Joint Special meeting of the City Council and Planning Commission and the Regular City Council meeting held on March 8, 2021. B. Demands on City Treasury (Fiscal Year 2021) — March 22, 2021 - Ratification. C. Monthly Investment Report — February 28, 2021 - Receive and file. D. West Orange County Water Board Fiscal Year 2021-2022 Operating Budget - That the City Council adopt Resolution 7120 approving the Fiscal Year 2021-2022 budget of the West Orange County Water Board (WOCWB). E. Notice of Completion for Fire Hydrant Relocation at Seal Beach Boulevard and Pacific Coast Highway, CIP WT2108 - That the City Council adopt Resolution 7121: 1. Accepting the Fire Hydrant Relocation at Seal Beach Boulevard and Pacific Coast Highway, CIP WT2108, by Cedro Construction, Inc. of $44,756; and, 2. Directing the City Clerk to file a "Notice of Completion" with the Orange County Clerk -Recorder within fifteen (15) days from the date of acceptance and to release retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. F. Approving and Authorizing the City Manager to Execute a Master Service Agreement with InfoSend, Inc. for Print and Mail Services - That the City Council adopt Resolution 7122: 1. Approving a master services agreement with InfoSend, Inc. to provide print and mail services for a three-year term; and, 2. Authorizing the City Manager to execute the Agreement; and, 3. Authorizing the City Manager the discretion to extend the Agreement up to two additional years. G. Approving and Authorizing the City Manager to Execute a Professional Services Agreement with Fieldman, Rolapp & Associates, Inc. for Financial Advisory Services - That the City Council adopt Resolution 7123: 1. Approving a professional services agreement with Fieldman, Rolapp & Associates, Inc. to provide financial advisory services for a five-year term; and, 2. Authorizing the City Manager to execute the Agreement. H. Approving and Authorizing the City Manager to Execute Amendment No. 2 to the Consultant Services Agreement with MuniServices, LLC to Provide Business License Discovery and Recovery Audit Services - That the City Council adopt Resolution 7124 to: 1. Approve Amendment No. 2 to the Consultant Services Agreement with MuniServices, LLC to provide business license discovery and recovery audit services; and, 2. Authorizing the City Manager to execute the Agreement and associated budget adjustments. I. Approving and Authorizing Amendment No. 2 to Professional Services Agreement with Pacific Advanced Civil Engineering, Inc. and Authorizing the City Manager to approve Optional Task and to further amend the Agreement for said additional services for Lampson Well Treatment Analysis, CIP WT1902 - That the City Council adopt Resolution 7125: 1. Approving Amendment No. 2 to the Professional Services Agreement with Pacific Advanced Civil Engineering, Inc. for additional engineering services in the amount of $379,105, and a revised not -to -exceed total amount of $441,605 for Lampson Well Treatment Analysis (WT1902), and extending the term to and including December 31, 2025; and, 2. Authorizing the City Manager to execute Amendment No. 2; and, 3. Approving Budget Amendment BA 21-09-04 in the amount of $300,000 for the Lampson Well Treatment Analysis, WT1902. J. Approving and Authorizing Amendment No. 2 to the Professional Services Agreement with Raftelis Financial Consultants, Inc. for the Water and Sewer Utility Rate Study - That the City Council adopt Resolution 7126: 1. Approving Amendment No. 2 to the Professional Services Agreement dated November 12, 2019 between the City of Seal Beach and Raftelis Financial Consultants, Inc. to increase consultant's compensation by $5,268 for a revised total agreement amount not -to -exceed $127,972 for the preparation of the Water Rate Study and Sewer Utility Rate Study; and, 2. Authorizing the City Manager to execute Amendment No. 2. -. .- - Iz. -_ ._ „_ - L. Award to and Authorize Execution of a Public Works Agreement with Onyx Paving Company, Inc. for FY2020-2021 Annual Local Paving Program, CIP ST2102 - That the City Council adopt Resolution 7128: 1. Approving plans, specifications, and contract documents for the FY2020-2021 Annual Local Paving Program, CIP ST2102; and, 2. Approving and awarding a public works agreement to Onyx Paving Company, Inc., in the amount of $255,000, and waive minor bid irregularities and reject all other bids; and, 3. Authorizing the City Manager to execute the public works agreement for the FY2020-2021 Annual Local Paving Program to Onyx Paving Company, Inc.; and, 4. Authorizing the City Manager to approve additional work requests up to $25,500 and inspection services up to $12,500 in connection with the Project, in the cumulative not -to exceed amount of $38,000. M. Approving and Authorizing a Memorandum of Agreement with the Orange County Auto Theft Task Force - That the City Council adopt Resolution 7129: 1. Approving the Memorandum of Agreement with the Orange County Auto Theft Task Force assigning a Seal Beach Police Officer to the task force; and, 2. Authorizing the City Manager to execute the Agreement. City Clerk Harper took a roll call vote to approve the consent calendar items. AYES: Kalmick, Varipapa, Sustarsic, Moore, Massa-Lavitt NOES: None ABSENT: None ABSTAIN: None Motion carried ITEMS REMOVED FROM CONSENT CALENDAR K. Seal Beach Police Department Purchase of Vigilant Solutions Fixed Automated License Plate Readers, Installed by Metro RF within the City of Seal Beach - That the City Council adopt Resolution 7127: 1. Approving an agreement between the City of Seal Beach, Vigilant Solutions and Metro RF to purchase and install fixed automated license plate readers within the City of Seal Beach; and, 2. Authorizing the City Manager to execute the agreement and any necessary documents, amendments, and extensions on behalf of the City of Seal Beach. Chief of Police Gonshak provided a comprehensive presentation on the staff report. Council Member questions were addressed. Council Member Moore moved, second by Mayor Pro Tem Varipapa, to adopt Resolution 7127: 1. Approving an agreement between the City of Seal Beach, Vigilant Solutions and Metro RF to purchase and install fixed automated license plate readers within the City of Seal Beach; and, 2. Authorizing the City Manager to execute the agreement and any necessary documents, amendments, and extensions on behalf of the City of Seal Beach. City Clerk Harper took a roll call vote to approve Item K. AYES: Kalmick, Varipapa, Sustarsic, Moore, Massa-Lavitt NOES: None ABSENT: None ABSTAIN: None Motion carried PUBLIC HEARING There were no public hearing items. UNFINISHED/CONTINUED BUSINESS There were no unfinished/continued business items. NEW BUSINESS N. Formation of Ad -Hoc Committee for Review of Housing Element Sites Inventory - That the City Council establish an Ad -Hoc Committee consisting of two City Council members and two Planning Commissioners for the purpose of reviewing the sites inventory list being prepared for the City's 2021-2029 Housing Element Update. Director of Community Development Johnson provided a background on the staff report and opened it up to the Council for those interested in representing the Council on the Committee. Council Member Massa-Lavitt, Council Member Sustarstic, and Mayor Pro Tem Varipapa all expressed an interest in being added to the Ad -Hoc Committee. Council Member Massa-Lavitt withdrew her name and allowed the other two Council Members to represent the Council on the Ad -Hoc Committee. Council Member Moore moved, second by Council Member Sustarsic, to appoint Council Member Sustarsic, Mayor Pro Tem Varipapa, Planning Chair Miller, and Planning Commissioner Campbell as Ad -Hoc Committee members for the purpose of reviewing the sites inventory list being prepared for the City's 2021-2029 Housing Element Update. City Clerk Harper took a roll call vote to approve Item N. AYES: Kalmick, Varipapa, Sustarsic, Moore, Massa-Lavitt NOES: None ABSENT: None ABSTAIN: None Motion carried ADJOURNMENT Mayor Kalmick adjourned the City Council meeting at 7:56 pm in memory of former Mayor Council Member Ronald "Chi" Kredell to Monday, April 12, 2021 at 5:30 p.m. to meet in closed session, if deemed necessary. Gloria D. Harper, City Clerk City of Seal Beach Approved: Joe Kalmick, Mayor Attested: Gloria D. Harper, City Clerk City of Seal Beach Fiscal Year 2021 Warrant Listing for Council Meeting 4-12-2021 Approve by Minute Order Demands on Treasury: Warrants-A/P: Checks 19023 - 19297 Ca1PERS Medical Wire Payroll: Payroll Direct Deposit Payroll State & Federal Taxes ICMA Ca1PERS Pension City of Seal Beach Flex Spending Total Payroll: $ 2,981,784.66 $ 122,833.42 $ 3,104,618.08 Year -to -Date: $ 28,236,553.48 $ 343,I12.16 $ 99,863.24 $ 23,084.28 $ 105,040.39 $ 1,421,75 $ 572,521.82 Year -to -Date: $ 12,434,989.11 Note: Year-to-date amounts are actual cash disbursements and do not reflect actual expenditures due to year-end accruals. Respectfully submitted by: dw* Kelly Tel r CPA Director of Finance/City Treasurer ()4 1 0112 02 1 Date City of Seal Beach User:vrodriguez Accounts Payable Checks by Date - Detail by Check Number Invoice No Description Reference Invoice Date Check No: 19023 Check Date: 03/18/2021 Vendor: ABB05 Charles Abbott Associates, Inc 62184 Filemaker Permitting Software -Feb 2 02/28/2021 Check Total: Check No: 19024 Check Date: 03/18/2021 Vendor: AINLEY Jon Ainley W20652 Reimb. Cost of Locksmith for Safe 03/03/2021 Check Total: Check No: 19025 Check Date: 03/18/2021 Vendor: ALLOT 1059140 Class F Sheet Check No: 19026 Check Date: 03/18/2021 Vendor: APL OGCT00048308OServices 3-9 to 4-8-2021 Check No: 19027 Check Date: 03/18/2021 Vendor: APWA 659432 Membership Renewal 4-1 to 3-31-2022 Check No: 19028 Check Date: 03/18/2021 Vendor: ARA05 589000079382 Floor mat service (City Hall & City 589000084886 Floor mat service (City Hall & City 589000079383 Floor mat service (City Hall & City 589000084887 Floor mat service (City Hall & City 589000079382 Floor mat service (City Hall & City 589000079383 Floor mat service (City Hall & City 589000084886 Floor mat service (City Hall & City 589000084887 Floor mat service (City Hall & City Check No: 19029 Check Date: 03/18/2021 Vendor: ARD 8787 General Engineering Inspection 8882 General Engineering Inspection 8768 General Engineering Inspection 8768 General Water Inspection 8787 Annual Slurry Seal Program \ Annual 8882 Annual Slurry Seal Program \ Annual 8768 Leisure World 18" Sewer Constr \ Lei 8768 OCTA 405 Widening Coop Agrmt \ OCTA 8787 OCTA 405 Widening Coop Agrmt \ OCTA 8882 OCTA 405 Widening Coop Agrmt \ OCTA 8882 Beach Yard Perimeter Wall Impr \ Bea 8882 Annual Local Paving Program \ Annual 8882 Arterial St Resurface Prog \ Arteria 8768 Annual Local Paving Program \ Annual 8768 Beach Yard Perimeter Wall Impr \ Bea 8787 On -Call Inspection PSA Amendmentfl. 1. 8882 On -Call Inspection PSA Amendment # 1. 8768 On -Call Inspection PSA Amendment # 1. Check No: 19030 Check Date: 03/18/2021 3626 Gold Alum Plate Check No: 19031 Check Date: 03/18/2021 354682 Towels/ Armor All Spray 354740 Towels All American Asph./Aggregates 02/09/2021 Check Total: Printed: 04/01/2021 16:24 Detail Check Amount 1,000.00 1,000.00 260.00 260.00 APLPD HOLDCO INC. & Subsidiary 03/08/2021 Check Total: Apwa 01/05/2021 Check Total: Aramark Uniform Services 02/25/2021 03/04/2021 02/25/2021 03/04/2021 02/25/2021 02/25/2021 03/04/2021 03/04/2021 Check Total: Ardurra Group Inc. 12/08/2020 01/11/2021 11/13/2020 11/13/2020 12/08/2020 01/11/2021 11/13/2020 11/13/2020 12/08/2020 01/11/2021 01/11/2021 01/11/2021 01/11/2021 11/13/2020 11/13/2020 12/08/2020 01/11/2021 11/13/2020 Check Total: Vendor: AWA01 Awards & Trophies 03/02/2021 Check Total: Vendor: bay08 Bay Hardware 02/25/2021 03/03/2021 175.23 175.23 287.30 287.30 900.00 900.00 55.34 55.34 49.13 49.13 55.34 49.14 55.34 49.14 417.90 300.00 330.00 300.00 576.35 144.88 2,649.72 73.88 431.18 432.90 724.67 4,653.56 286.30 2,002.94 581.23 994.00 9,577.52 16,313.29 22,960.26 63,332.68 Page 1 15.62 15.62 22.47 28.61 City of Seal Beach Accounts Payable User:vrodriguez Checks by Date - Detail by Check Number Invoice No Description Reference Invoice Date 354698 Shop Towels/ Rags 354727 Roller Covers/ Rags/ Sponges 354739 Kitchen Faucet 354749 Faucet Connector 354313 Rebar/ Corner Iron/ PVC Pipe 354726 Elec Tape/ Soldering Gun Kit 354616 Graffiti Remover 354389 Batteries/ Dish soap/ Hand Soap 994853 Bench Grinder 354237 Wire Rope Clip 992165 Water Filter 354002 Return/Credit Faucet Handle -Inv 3540 354001 Shower Flange/ Faucet Handle 354357 Screws/ Anchors/ Nuts/ Bolts Check No: 19032 Check Date: 03/18/2021 128457 Swarm Abatement -811 Avalon Check No: 19033 Check Date: 03/18/2021 252-2366002 Services 3-1-2020 to 2-28-2021 Vendor: BEE01 Vendor: BNY01 Check No: 19034 Check Date: 03/18/2021 Vendor: BOA07 W20653 Return Unexpended Funds STC Program Check No: 19035 Check Date: 03/18/2021 Vendor: BOG03 1288 Musicians in the Park. Nov/Dec 2020 02/28/2021 Check No: 19036 Check Date: 03/18/2021 Vendor: BOUO2 83967543 Lancets/ Epipen Training Cedro Construction Inc. Check No: 19037 Check Date: 03/18/2021 Vendor: BRI02 W21236 Refuse Contract Billing Feb 2021 02/18/2021 W21236 Refuse Contract Billing Feb 2021 02/18/2021 W21236 Refuse Contract Billing Feb 2021 Check Total: W21236 Refuse Contract Billing Feb 2021 CEU PLAN Check No: 19038 Check Date: 03/18/2021 Vendor: BRO34 39511456 Licensing Services 02/26/2021 03/02/2021 03/03/2021 03/03/2021 01/30/2021 03/02/2021 02/21/2021 02/04/2021 01/29/2021 01/27/2021 01/22/2021 01/08/2021 01/08/2021 02/02/2021 Check Total: Bee Busters 02/22/2021 Check Total: The Bank of New York Mellon 03/08/2021 Check Total: Board of State and Community C 03/04/2021 Check Total: Bogart's Coffee 12/11/2020 Check Total: Bound Tree Medical, LLC 02/25/2021 Check Total: Briggeman Disposal 03/09/2021 03/09/2021 03/09/2021 03/09/2021 Check Total: Broadcast Music Inc 03/02/2021 Check Total: Check No: 19039 Check Date: 03/18/2021 Vendor: cab10 Cabco Yellow Inc 2520021 Services Feb 2021 02/28/2021 Check Total: Check No: 19040 Check Date: 03/18/2021 Vendor: CED Cedro Construction Inc. WT2108 Retention 02/18/2021 WT2108 Fire Hydrant Relocate SSB&PCH \ Fire 02/18/2021 WT2108 Fire Hydrant Relocate SSB&PCH \ Fire 02/18/2021 Check Total: Check No: 19041 Check Date: 03/18/2021 Vendor: CEU CEU PLAN W20935 Collection Systems Education -D Escob 02/25/2021 Printed: 04/01/2021 16:24 Detail Check Amount 49.97 109.91 47.80 37.13 44.16 80.42 13.69 43.83 78.29 2.76 86.99 -27.37 32.26 4.33 655.25 175.00 175.00 4,000.00 4,000.00 3,300.00 3,300.00 200.00 200.00 844.37 844.37 -9,481.28 -5,417.87 14,899.15 120,547.66 120,547.66 368.00 368.00 4,062.00 4,062.00 -2,237.80 41,000.00 3,756.00 42,518.20 205.75 Page 2 City of Sea] Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description Reference Invoice Date Check Amount Check Total: 205.75 Check No: 19042 Check Date: 03/18/2021 Vendor: CFPOI California Forensic Phlebotomy 1564 DUI blood draws -Feb 2021 03/02/2021 565.00 Check Total: 565.00 Check No: 19043 Check Date: 03/18/2021 Vendor: CIN04 Cintas Corporation # 640 4077166166 Uniform Services 3-1-2021 03/01/2021 4.39 4077166166 Uniform Services 3-1-2021 03/01/2021 4.27 4077166166 Uniform Services 3-1-2021 03/01/2021 18.76 4077166166 Uniform Services 3-1-2021 03/01/2021 35.16 4077166166 Uniform Services 3-1-2021 03/01/2021 29.93 4077166166 Uniform Services 3-1-2021 03/01/2021 8.80 Check Total: 101.31 Check No: 19044 Check Date: 03/18/2021 Vendor: CIT26 City Of Huntington Beach 598817 Loan Payment #12 02/10/2021 21,860.77 Check Total: 21,860.77 Check No: 19045 Check Date: 03/18/2021 Vendor: CIV02 Civicstone, Inc. 2021042 CDBG Leisure World Bthrm Access-Feb2 03/03/2021 5,390.00 Check Total: 5,390.00 Check No: 19046 Check Date: 03/18/2021 Vendor: CLA10 Cla-Val.Soundcast.Griswold Cas 814736 Navy Reservoir Valve Rebuild 02/15/2021 4,289.45 Check Total: 4,289.45 Check No: 19047 Check Date: 03/18/2021 Vendor: CLE11 CleanStreet Inc. 99528 Street Sweeper Services -Feb 2021 02/28/2021 14,013.83 Check Total: 14,013.83 Check No: 19048 Check Date: 03/18/2021 Vendor: col36 CMY 2.25.2021 Services Feb 2021 02/25/2021 3,190.80 Check Total: 3,190.80 Check No: 19049 Check Date: 03/18/2021 Vendor: COM46 Commercial Aquatic Services I21-1456 Chemicals 2-17-2021 02/17/2021 109.59 I21-1535 Chemicals 2-24-2021 02/24/2021 435.72 I21-1428 Chemicals 2-12-2021 02/12/2021 465.06 Check Total: 1,010.37 Check No: 19050 Check Date: 03/18/2021 Vendor: COU32 County of Orange SH58679 OCATS- Feb 2021 02/23/2021 1,273.33 Check Total: 1,273.33 Check No: 19051 Check Date: 03/18/2021 Vendor: COU32 County of Orange SH58750 AFIS- March 2021 03/03/2021 1,103.00 Check Total: 1,103.00 Check No: 19052 Check Date: 03/18/2021 Vendor: CUS01 Custom Glass 24194 CDBG Bathroom Access Grant -Reynolds 02/22/2021 905.00 24195 CDBG Bathroom Access Grant -Watkins 2 02/22/2021 905.00 24204 CDBG Bathroom Access Grant -Geier 5G 02/25/2021 905.00 24206 CDBG Bathroom Access Grant-Makus 7E 02/27/2021 905.00 24216 CDBG Bathroom Access Grant -Smith A 2 03/03/2021 905.00 Check Total: 4,525.00 Page 3 City of Seal Beach User:vrodriguez Ch Invoice No Description Check No: 19053 Check Date: 03/18/2021 INVO00068927 Rework and grease 12" plug valves on Check No: 19054 Check Date: 03/18/2021 03.17.2021 Remove/Install New U -Bolts Check No: 19055 Check Date: 03/18/2021 012 PD vehicle car washes -Feb 2021. Check No: 19056 Check Date: 03/18/2021 133040-02 Instructor Pay 2-1 to 3-9-2021 80 Services Feb 2021 80 Services Feb 2021 80 Services Feb 2021 Check No: 19057 Check Date: 03/18/2021 497713 Services Feb 2021 Check No: 19058 Check Date: 03/18/2021 03.04.2021 Reimb License Reneal CAEMSA Check No: 19059 Check Date: 03/18/2021 45850295X21022gervices 2-27 to 3-26-2021 57524152X21030fRervices 3-1 to 3-31-2021 51798338X2102287ervices 2-26 to 3-25-2021 Check No: 19060 Check Date: 03/18/2021 396180 Dog Waste Roll Bag 10 roll case (200 Accounts Payable Che by Date - Detail by Check Number Ref Check No: 19061 Check Date: 03/18/2021 SEA -0006 COVID 19 Testing Services/Kits-1-11- SEA -0005 COVID 19 Testing Services/Kits-1-4-2 SEA -0008 COVID 19 Testing Services/Kits-Feb 2 SEA -0007 COVID 19 Testing Services/Kits 1-15- SEA -0003 COVID 19 Testing Services/Kits-Nov 2 SEA -0004 COVID 19 Testing Services/Kits-Dec 2 Check No: 19062 Check Date: 03/18/2021 W20654 Reimb. Tracker/ Tracking Subscriptio Check No: 19063 Check Date: 03/18/2021 R2131245 E96 Rental Services Mar 2021 Check No: 19064 Check Date: 03/18/2021 67 -12501 -CU Rossmoor Rent March 2021 erence Invoice Date Vendor: CWE01 C. Wells Pipeline Materials, I 01/21/2021 Check Total: Vendor: CWR CW Industries 03/17/2021 Check Total: Vendor: CYP Cypress SB Car Spa Inc. 03/02/2021 Check Total: Vendor: DAN02 Brenda Danielson 03/10/2021 03/01/2021 03/01/2021 03/01/2021 Check Total: Vendor: DEPART Department of Justice 03/04/2021 Check Total: Vendor: DILLER Michael Diller 03/04/2021 Check Total: Vendor: DIR09 DIRECTV 02/28/2021 03/02/2021 02/27/2021 Check Total: Vendor: DOG03 Dog Waste Depot 03/09/2021 Check Total: Vendor: DXT DxTerity Diagnostics Inc 01/11/2021 01/04/2021 02/09/2021 01/15/2021 11/30/2020 12/22/2020 Check Total: Vendor: EDWARDSOKevin Edwards 03/09/2021 Check Total: Vendor: EVER02 Eversoft Inc. 03/01/2021 Check Total: Vendor: FAR8 Farmers & Merchants Bank 03/01/2021 Check Total: Printed: 04/01/2021 16:24 Detail Check Amount 3,710.00 3,710.00 570.00 570.00 686.00 686.00 695.18 2,356.80 2,477.50 3,600.00 9,129.48 32.00 32.00 275.00 275.00 245.24 186.98 160.99 593.21 944.96 944.96 7,500.00 7,500.00 15,000.00 17,500.00 7,950.00 9,600.00 65,050.00 Page 4 88.00 88.00 195.41 195.41 951.93 951.93 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Deserintion Reference Invoice Date Check Amount Check No: 19065 Check Date: 03/18/2021 Vendor: FAT02 Maria Fattal 133060-01 Instructor Pay 11-30-20 to 3-9-2021 03/10/2021 2,713.90 Check Total: 2,713.90 Check No: 19066 Check Date: 03/18/2021 Vendor: FDS FDS Holdings Inc INV00035822 Equioment Rental- Feb 2021 02/28/2022 100.00 Check Total: 100.00 Check No: 19067 Check Date: 03/18/2021 Vendor: FIE04 Fieldman, Rolapp & Associates 25768 Services Nov 2021 01/14/2021 63.00 Check Total: 63.00 Check No: 19068 Check Date: 03/18/2021 Vendor: FOR09 Robin Forte-Lincke W21235 TV Origination Services Payment #18 03/09/2021 1,453.50 Check Total: 1,453.50 Check No: 19069 Check Date: 03/18/2021 Vendor: FRO02 Frontier Communications 2130334822/4-21Services 3-4 to 4-3-2021 03/04/2021 447.69 2091885608/4-2 1 Services 3-4 to 4-3-2021 03/04/2021 983.71 20918 80920/4-2 1 Services 3-4 to 4-3-2021 03/04/2021 323.77 5625984514/4-2 1 Services 3-10 to 4-9-2021 03/10/2021 126.13 5625988624/4-21Services 3-1O to 4-9-2021 03/10/2021 233.47 5621560001/4-21 Services 3-8 to 4-7-2021 03/08/2021 57.33 2091880920/4-21 Services 3-4 to 4-3-2021 03/04/2021 935.35 7148911483/4-21 Services 3-7 to 4-9-2021 03/07/2021 53.82 2091880920/4-21 Services 3-4 to 4-3-2021 03/04/2021 55.98 2090946840/4-21 Services 3-10 to 4-9-2021 03/10/2021 42.98 5625962778/4-21 Services 3-2 to 4-1-2021 03/02/2021 70.84 2091880920/4-21 Services 3-4 to 4-3-2021 03/04/2021 231.97 2091880920/4-21 Services 3-4 to 4-3-2021 03/04/2021 46.25 Check Total: 3,609.29 Check No: 19070 Check Date: 03/18/2021 Vendor: GAL08 Galls, LLC 017689849 Outfit new officer Rae[ -Brook with a 02/18/2021 -42.94 BC1298302 Outfit new officer Rael-Brook with e 02/19/2021 45.58 BC1297434 Outfit new officer Rael-Brook with a 02/18/2021 124.71 017699784 Outfit new officer Rae] -Brook with e 02/19/2021 -50.09 BC1303151 3 LAPD Black Series AXBIIIIA Male ve 02/26/2021 497.31 BC1303151 BVP 50% cost share 02/26/2021 497.30 Check Total: 1,071.87 Check No: 19071 Check Date: 03/18/2021 Vendor: GOL01 Golden West College W18451 Reg Sgts Supervisory Course-Krok 01/15/2020 254.00 Check Total: 254.00 Check No: 19072 Check Date: 03/18/2021 Vendor: GOL05 Golden Rain Foundation OSCU000064 CDBG Bathroom Access Grant-Fratto 10 02/05/2021 360.00 OSCU00006-1 CDBG Bathroom Access Grant -Kuyper 44 02/05/2021 360.00 OSCU00006-2 CDBG Bathroom Access Grant -Zimmerman 02/12/2021 360.00 OSCU00006-3 CDBG Bathroom Access Grant-Makus 7E 02/22/2021 360.00 Check Total: 1,440.00 Check No. 19073 Check Date: 03/18/2021 Vendor: GOOGE Patricia Googe W20649 ReturnCurrency to Victim 21-00286/58 03/02/2021 19,100.00 Check Total: 19,100.00 Check No: 19074 Check Date: 03/18/2021 Vendor: GOV12 GovInvest Inc. 2020-3042 Annual Licensing Fee 2021-2022 03/01/2021 7,187.50 Page 5 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description Reference Invoice Date Check Amount Check Total: 7,187.50 Check No: 19075 Check Date: 03/18/2021 Vendor: GRA08 Grainger 9814221363 HVAC Filters 02/22/2021 413.70 9818637630 Leaf Rake/ Traffic Cones/ Brooms 02/25/2021 548.48 9818637648 Paper Towel Dispensers 02/25/2021 276.18 9818264567 Two (2) each, ACORN metering valve a 02/25/2021 440.90 Check Total: 1,679.26 Check No: 19076 Check Date: 03/18/2021 Vendor: GTT GTT Communications, Inc. INV4644715 Services 2-1 to 3-31-2021 03/01/2021 779.97 INVI278080 Late Fees 09/30/2018 59.57 INV 1482655 Late Fees 12/30/2018 14.84 INV2779843 Late Fees 11/30/2019 31.29 INV3304740 Late Fees 04/30/2020 29.28 INV3381591 Late Fees 05/30/2020 35.12 Check Total: 950.07 Check No: 19077 Check Date: 03/18/2021 Vendor: HAD02 Hadi Construction Co. W21242 Overpayment- Permit 2021-297 03/09/2021 20.00 Check Total: 20.00 Check No: 19078 Check Date: 03/18/2021 Vendor: HANNA Akemi Hanna 142044-03 Instructor Pay 11-30-20 to 3-9-2021 03/10/2021 191.75 Check Total: 191.75 Check No: 19079 Check Date: 03/18/2021 Vendor: HDOI Core & Main LP N772744 One (1) each, 2" ARI Air Release val 02/26/2021 528.52 N772744 Two (2) each, 1" ARI Air Release val 02/26/2021 463.28 Check Total: 991.80 Check No: 19080 Check Date: 03/18/2021 Vendor: HISO1 Hi Standard Automotive LLC 25849 Have Hi Standard supply and install 02/23/2021 333.79 Check Total: 333.79 Check No: 19081 Check Date: 03/18/2021 Vendor: HOMO1 Home Depot Credit Services 9903652 Heavy Duty Wire Stripper 01/03/2021 47.80 8173902 Auto Wire Stripper 01/04/2021 53.22 8014694 Floor Bully/ Pushbroom/ Hackzall 02/23/2021 428.09 7023354 Rebar/ Wrench/Angle Pipe 02/24/2021 72.55 H0647-166226 Comet/ Cleaning Brush/ Trash Bags 03/01/2021 526.50 8934039 Ratchet 01/04/2021 212.05 Check Total: 1,340.21 Check No: 19082 Check Date: 03/18/2021 Vendor: HOR09 Horizons Construction Co. Int' 1 Retention 03/11/2021 -3,464.26 1 Beach Yard Perimeter Wall Impr \ Bea 03/11/2021 64,761.54 1 Beach Yard Perimeter Wall Impr \ Bea 03/11/2021 4,523.72 Check Total: 65,821.00 Check No: 19083 Check Date: 03/18/2021 Vendor: HOT02 Hotschedules.com, Inc. 10140934 Services April 2021 03/01/2021 149.67 Check Total: 149.67 Check No: 19084 Check Date: 03/18/2021 Vendor: hunl l John L. Hunter & Associates, Inc. SBIMS412012 NPDES & Water Conservation -Dec 2020 02/16/2021 1,651.25 SBIMS412009 NPDES Sept2020 12/04/2020 2,220.00 SBIMS412010 NPDES & Water Conservation- Oct 2020 12/11/2020 6,013.75 SBIMS412008 NPDES & Water Conservation- August 2 12/04/2020 2,225.00 Page 6 City of Seal Beach Accounts Payable User:vrodriguez Checks by Date - Detail by Check Number Invoice No Description Reference Invoice Date SBIMS412007 NPDES & Water Conservation -July 202 12/04/2020 SB1MS412012 NPDES & Water Conservation -Dec 2020 02/16/2021 SBIMS412008 NPDES & Water Conservation- August 2 12/04/2020 SBIMS412007 NPDES & Water Conservation -July 202 12/04/2020 SBIMS412012 NPDES & Water Conservation -Dec 2020 02/16/2021 SBIMS412010 NPDES & Water Conservation -Oct 2020 12/11/2020 SBIMS412008 NPDES & Water Conservation- August 2 12/04/2020 SBIMS412007 NPDES & Water Conservation -July 202 12/04/2020 Check Total: Check No: 19085 Check Date: 03/18/2021 Vendor: hyd04 Hydraulic Hose of Orange Count OC -T00002416 Assemby Kit/ Hose 02/18/2021 Check Total: Check No: 19086 Check Date: 03/18/2021 Vendor: int51 Interwest Consulting Group 66763 Permit Review & Plan Check -Jan 2021 02/17/2021 Check Total: Check No: 19087 Check Date: 03/18/2021 Vendor: IPS IPS Group Inc. INV54507 Services Oct 2020 10/31/2020 INV58001 Services Feb 2021 02/28/2021 INV56923 Services Jan 2021 01/31/2021 Check Total: Check No: 19088 Check Date: 03/18/2021 Vendor: ite 130473-4 On -Call Traffic Eng.Sery-2-20 to 1-3 130473-5 STOP -Sign Request Policy. Part of O 130473-6 Local Signal Synchronization Plan Up Check No: 19089 Check Date: 03/18/2021 Vendor: JCLO1 107886 Water Wall Rental 1-20 to 2-19-2021 Check No: 19090 Check Date: 03/18/2021 Vendor: KUS02 1621 Parking citation hearings- 2-3-2021 Check No: 19091 Check Date: 03/18/2021 Vendor: LAS07 0002603 Water & sewer department dump truck. Check No: 19092 Check Date: 03/18/2021 Vendor: L0007 21-245 Local Roadway Safety Plan -Feb 2021 21-240 Lampson Ave ATP Bike Ln Grant \ Lamp Check No: 19093 Check Date: 03/18/2021 Vendor: LON25 39489 ID Lights/ Upper Rear Pod Brake Ligh 211846 Battery AGM 211820 Retainer Springs Check No: 19094 Check Date: 03/18/2021 Vendor: LOT03 4191 KNA storage box with wheels and lift Check No: 19095 Check Date: 03/18/2021 Vendor: LOZ W20655 Registration for Homeless Liaison -Ba Iteris Inc 02/04/2021 02/04/2021 02/04/2021 Check Total: JCL Traffic Services 02/24/2021 Check Total: Gary I. Kusunoki 02/27/2021 Check Total: Lasher Auto Center 10/07/2020 Check Total: Local Agency Engineering Assoc 03/08/2021 03/08/2021 Check Total: Long Beach BMW 02/05/2021 02/03/2021 02/02/2021 Check Total: LotusUSAInc 11/20/2020 Check Total: Lozeau Consulting 03/10/2021 Printed: 04/01/2021 16:24 Detail Check Amount 6,127.50 375.00 115.00 287.50 36.25 181.25 580.00 290.00 20,102.50 303.00 303.00 4,880.00 4,880.00 748.09 711.43 585.33 2,044.85 5,017.30 6,540.00 3,538.19 15,095.49 2,156.00 2,156.00 530.00 530.00 74,979.04 74,979.04 1,420.00 1,172.50 2,592.50 240.00 388.37 213.28 841.65 1,742.84 1,742.84 80.00 Page 7 City of Seal Beach User:vrodriguez Invoice No Description Accounts Payable Checks by Date - Detail by Check Number Check No: 19096 Check Date: 03/18/2021 167063-01 Instructor Pay 11-30-20 to 3-9-2021 Reference Invoice Date Check Total: Vendor: M&M05 M & M Surfing 03/10/2021 Check Total: Check No: 19097 Check Date: 03/18/2021 Vendor: MACHEN Debra Machen 101148 Sea] Beach Marketing/Promotion-Feb21 03/03/2021 Check Total: Check No: 19098 Check Date: 03/18/2021 Vendor: MAR50 Marx Bros.Fire Extinguisher Co S11515 Semi -Annual Ext Inspection 02/19/2021 Check Total: Check No: 19099 Check Date: 03/18/2021 Vendor: MET13 Metropolitan Telecom mnications 0100518281-210(Services 3-8 to 4-7-2021 03/08/2021 0100518281-210(gervices 3-8 to 4-7-2021 03/08/2021 0100518281-210(Services 3-8 to 4-7-2021 03/08/2021 0100518281-210(gervices 3-8 to 4-7-2021 03/08/2021 Check Total: Check No: 19100 Check Date: 03/18/2021 Vendor: NatBusFu National Business Furniture MK555977 (2) 71' Overhead Hutches w/ Door - A 03/03/2021 Check Total: Check No: 19101 Check Date: 03/18/2021 Vendor: NIC08 2.19.21 Reimb. SLI Costs- Session 7 2.13.21 Reimb. Costs for Canine Team Trainin Check No: 19102 Check Date: 03/18/2021 Vendor: NU01 02.22.21 CDBG Bathroom Access Grant-Makus 7E 02.24.21 CDBG Bathroom Access Grant- Smith A 03.01.21 CDBG Bathroom Access Grant-Kurbatzky 02.11.21 CDBG Bathroom Access Grant -Reynolds 02.16.21 CDBG Bathroom Access Grant -Watkins 2 02.17.21 CDBG Bathroom Access Grant -Geier 5G Check No: 19103 Check Date: 03/18/2021 180182468 Renewal Through 3-3-2021 Check No: 19104 Check Date: 03/18/2021 22575 Ship -From Nota Fiscal Return Check No: 19105 Check Date: 03/18/2021 157752593001 Post -Its/ Pens/ Binders 155288202001 Cleaning Wipes 158937257001 Dividers/ Power Strips 158937258002 Power Extension 158937259001 Power Cord 158937261001 Flippro Cordless 155851160001 Transcend Jet Flash 155851146001 Flash Drives 155851020001 Wall Sign 158937030001 Wall Sign 160144289001 Memo Book/ Mesh Wall Holder Vendor: OCR02 Vendor: OCWD Vendor: OFF05 Nicholas Nicholas 02/19/2021 02/13/2021 Check Total: NU Kote 02/22/2021 02/24/2021 03/01/2021 02/11/2021 02/16/2021 02/17/2021 Check Total: The Orange County Register 02/24/2021 Check Total: Orange County Water Dist. 02/23/2021 Check Total: Office Depot, Inc. 02/19/2021 02/18/2021 02/25/2021 02/25/2021 02/25/2021 02/25/2021 02/17/2021 02/17/2021 02/18/2021 02/26/2021 02/25/2021 Printed: 04/01/2021 16:24 Detail Check Amount 80.00 3,213.00 3,213.00 2,215.28 2,215.28 80.00 80.00 454.30 778.00 225.78 198.88 1,656.96 1,366.27 1,366.27 373.80 839.80 1,213.60 1,910.00 1,910.00 2,790.00 1,910.00 1,910.00 1,910.00 12,340.00 Page 8 135.58 135.58 146.10 146.10 90.74 130.85 40.00 19.55 10.86 56.54 60.81 103.15 14.13 20.65 18.34 City of Sea] Beach User:vrodriguez Invoice No I)escription 160144289001 Water Accounts Payable Checks by Date - Detail by Check Number Reference Invoice Date Check No: 19106 Check Date: 03/18/2021 I-01845747 Card Tent I-01844541 Water/Dividers/ Tabs I-01848403 Folders 1-01848397 Dividers 1-01847525 Workstation I-01849250 Cups/ Coffee/ Forks Check No: 19107 Check Date: 03/18/2021 7319 Pest Extermination/Edison Garden -Feb 7247 Pest Extermination/Library -Feb 2021 Check No: 19108 Check Date: 03/18/2021 AR142072 Westminster/ 17th Corr TS Sync \ West Check No: 19109 Check Date: 03/18/2021 S0425657 FY 20-21 Quarter 3 Check No: 19110 Check Date: 03/18/2021 4682 Lampson Well Head Treatment -Feb 21 Check No: 19111 Check Date: 03/18/2021 IV121327 Services Feb 2021 Check No: 19112 Check Date: 03/18/2021 INV -1019940 Services Feb 2021 Check No: 19113 Check Date: 03/18/2021 0120211000 Services Jan 2021 Check No: 19114 Check Date: 03/18/2021 W15005 Wellness Program Check No: 19115 Check Date: 03/18/2021 202103021855445;ervicesFeb 2021 Check No: 19116 Check Date: 03/18/2021 129967 CAFR Check No: 19117 Check Date: 03/18/2021 52432 Psych Evaluations -RB 52430 Psych Evaluations -LB 02/25/2021 Check Total: Vendor: OFF11 Office Solutions Business Prod 02/19/2021 02/17/2021 03/01/2021 03/01/2021 02/25/2021 03/03/2021 Check Total: Vendor: ONP05 On Point Exterminating Inc 02/26/2021 02/26/2021 Check Total: Vendor: ORA13 OCTA Printed: 04/01/2021 16:24 Detail Check Amount 40.74 606.36 16.50 114.69 54.91 18.01 376.81 24.65 605.57 100.00 60.00 160.00 46,244.74 46,244.74 1,505,293.75 1,505,293.75 Page 9 6,836.25 6,836.25 315.00 315.00 500.00 500.00 1,297.60 1,297.60 500.00 500.00 15.00 15.00 265.92 265.92 400.00 400.00 800.00 01/14/2021 Check Total: Vendor: ORA24 Orange County Fire Auth. 02/11/2021 Check Total: Vendor: PAC72 Pacific Advanced Civil Enginee 02/28/2021 Check Total: Vendor: PAR19 Parkeon Inc. 02/22/2021 Check Total: Vendor: PAS05 Passport Labs Inc. 02/28/2021 Check Total: Vendor: PHO02 Phoenix Group 03/01/2021 Check Total: Vendor: PIERCE01 Chris Pierce 03/03/2021 Check Total: Vendor: PLU01 Plug & Pay Technologies, Inc. 03/03/2021 Check Total: Vendor: PRI17 The Printery, Inc. 01/22/2021 Check Total: Vendor: PSY01 Psychological Consulting Assoc 01/31/2021 01/31/2021 Check Total: Printed: 04/01/2021 16:24 Detail Check Amount 40.74 606.36 16.50 114.69 54.91 18.01 376.81 24.65 605.57 100.00 60.00 160.00 46,244.74 46,244.74 1,505,293.75 1,505,293.75 Page 9 6,836.25 6,836.25 315.00 315.00 500.00 500.00 1,297.60 1,297.60 500.00 500.00 15.00 15.00 265.92 265.92 400.00 400.00 800.00 City of Seal Beach Accounts Payable User:vrodriguez Checks by Date - Detail by Check Number Invoice No Description Reference Invoice Date Check No: 19118 Check Date: 03/18/2021 Vendor: RAA01 Mike Raahauge Shooting Enterpr 1564 Pistol Range 2-18-21 03/05/2021 Check Total: Check No: 19119 Check Date: 03/18/2021 Vendor: REA03 11B0027940022 Water Deliveries 1-15 to 2-14-2021 Check No: 19120 Check Date: 03/18/2021 Vendor: REDO1 789-99-2469100 Work Boots- Giordano Check No: 19121 Check Date: 03/18/2021 Vendor: RICO2 230875 S7296-0002 Additional Services -Feb 2 Check No: 19122 Check Date: 03/18/2021 Vendor: RJM 34248 RMC Grant Application Preparation Check No: 19123 Check Date: 03/18/2021 Vendor: RPW 23210 Gopher Control Arbor Park- Jan 2021 23209 Rodent Control City Parks- Jan 2021 23208 Gopher Control Fire Dept 28- Jan 202 Check No: 19124 Check Date: 03/18/2021 S100165186.001 Water supplies and equipment Check No: 19125 Check Date: 03/18/2021 322008 Services Jan 2021 Check No: 19126 Check Date: 03/18/2021 2362 Temporary Planning Staff 2-17 to 2-2 Check No: 19127 Check Date: 03/18/2021 W20651 Reimb. Shadow Boxes Vendor: S&JOI Vendor: SAF10 Vendor: SAG02 Ready Refresh by Nestle 02/17/2021 Check Total: Red Wing Business Advantage 02/26/2021 Check Total: Richards Watson & Gershon 02/28/2021 Check Total: RJM Design Group Inc 02/16/2021 Check Total: RPW Services, Inc. 01/29/2021 01/29/2021 01/29/2021 Check Total: S & J Supply Co 12/03/2020 Check Total: Safeshred Company, Inc. 01/31/2021 Check Total: Sagecrest Planning and Environ 02/28/2021 Check Total: Vendor: SARABIA Dominic Sarabia 02/25/2021 Check Total: Check No: 19128 Check Date: 03/18/2021 Vendor: SCE01 2024025629/3-2 1 Services 2-1 to 3-3-2021 2212362826/2-21Services 1-27 to 2-26-2021 2024050163/3-2 1 Services 2-1 to 3-3-2021 2024025629/3-21Services 2-1 to 3-3-2021 2212362826/2-21Services 1-27 to 2-26-2021 2289382129/3-21Services 2-4 to 3-8-2021 2371357815/3-21 Services 2-1 to 3-3-2021 2212362826/2-21Services 1-27 to 2-26-2021 2024028599/3-21 Services 2-10 to 3-12-2021 2024025629/3-21 Services 2-1 to 3-3-2021 2212362826/2-21Services 1-27 to 2-26-2021 2218943843/3-2]Services 2-2 to 3-4-2021 2354785172/3-21 Services 2-2 to 3-4-2021 2212362826/2-2 1 Services 1-27 to 2-26-2021 2024047656/3-2 1 Services 2-1 to 3-2-2021 22 82924729/3-2 1 Services 2-1 to 3-2-2021 Southern Calif. Edison 03/05/2021 03/02/2021 03/04/2021 03/05/2021 03/02/2021 03/10/2021 03/06/2021 03/02/2021 03/13/2021 03/05/2021 03/02/2021 03/05/2021 03/05/2021 03/02/2021 03/02/2021 03/02/2021 Printed: 04/01/2021 16:24 Detail Check Amount 22.00 22.00 68.87 68.87 250.00 250.00 8,000.00 8,000.00 4,301.40 4,301.40 307.50 2,030.00 130.00 2,467.50 1,493.42 1,493.42 54.00 54.00 4,615.00 4,615.00 641.16 641.16 29.67 4,832.28 83.56 100.09 498.23 31.18 20.86 1,620.58 1,488.40 812.10 116.43 93.23 46.39 34.03 78.77 80.43 Page 10 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description Reference Invoice Date Check Amount 2212368641/3-21Services 2-1 to 3-1-2021 03/10/2021 15,289.21 2212362826/2-2 1 Services 1-27 to 2-26-2021 03/02/2021 10,817.25 2212362826/2-2 1 Services 1-27 to 2-26-2021 03/02/2021 181.48 2212362826/2-2 1 Services 1-27 to 2-26-2021 03/02/2021 154.36 2261529358/3-21Services 2-3 to 3-5-2021 03/06/2021 20.42 2265022343/3-2]Services 2-3 to 3-5-2021 03/06/2021 265.98 2294542014/3-2 1 Services 2-3 to 3-5-2021 03/06/2021 187.21 2212362826/2-21Services 1-27 to 2-26-2021 03/02/2021 1,405.89 Check Total: 38,288.03 Check No: 19129 Check Date: 03/18/2021 Vendor: sce06 Southern California Edison 7590353309 Lampson Ave ATP Bike Ln Grant \ Lamp 02/26/2021 2,403.86 Check Total: 2,403.86 Check No: 19130 Check Date: 03/18/2021 Vendor: soc SoCal Auto & Truck Parts Inc. 4126-506556 Oil Filters/ Air Filters 02/22/2021 86.14 4126-506951 Exactfit-Beam 02/25/2021 315.31 4126-506244 Disc Brake Pads 02/19/2021 68.69 4126-507015 Oil Filters/ Air Filters 02/25/2021 96.33 4126-507988 Vavle Cover 03/05/2021 16.49 4126-507641 AC Belt 03/03/2021 20.89 4126-507729 Spark Plugs/ Air Filters/ Fuel Filte 03/03/2021 97.43 4126-507521 Horn 03/02/2021 20.11 Check Total: 721.39 Check No: 19131 Check Date: 03/18/2021 Vendor: SOU09 South Coast A. Q. M. D. 3769595 Flat fee for Last FY Emissions -2701 02/02/2021 136.40 3767187 ICE Em Elec Gen -Nat Gas -2701 SB 02/02/2021 421.02 3773919 ICE Em Elec Gen -Nat Gas -800 Ocean 02/16/2021 421.02 3776971 Flat fee for Last FY Emissions -800 O 02/16/2021 136.40 Check Total: 1,114.84 Check No: 19132 Check Date: 03/18/2021 Vendor: STA69 Stantec Consulting Services In 1756616 LCWA Watermain Lining \ Jan 2021 02/19/2021 12,795.98 Check Total: 12,795.98 Check No: 19133 Check Date: 03/18/2021 Vendor: STA65 Statewide Traffic Safety and S 02024959 Four (4) each, 12" x 18" Pickleball 02/19/2021 63.08 Check Total: 63.08 Check No: 19134 Check Date: 03/18/2021 Vendor: SUN27 Sunbelt Rentals, Inc. 109875455-0001 Emergency storm water pump rentals J 02/01/2021 6,419.91 Check Total: 6,419.91 Check No: 19135 Check Date: 03/18/2021 Vendor: SUP25 Superior Pavement Markings 13705 Annual Striping Program- Thru 2-23-2 02/23/2021 4,686.00 13689 Annual Striping Program- Thru 2-22-2 02/22/2021 561.05 13488 Annual Striping Program -Thru 12-10- 12/30/2020 11,673.50 13638 Annual Striping Program-Thru 1-31-21 01/31/2021 1,310.00 Check Total: 18,230.55 Check No; 19136 Check Date: 03/18/2021 Vendor: SYN05 SYNOPTEK 1187514 4 Dell 23 Monitor - E2318H Monitors 01/26/2021 556.83 1188650 2 Dell Networking N4000 Series Switc 02/18/2021 1,132.52 1186924 Wireless Bridge - Dec 2020 12/31/2020 1,225.00 1187605 Mobile Device Management -Mar 2021 02/01/2021 141.75 Check Total: 3,056.10 Page l l City of Seal Beach Accounts Payable User:vrodriguez Checks by Date - Detail by Check Number Invoice No Description Reference Invoice Date Check No: 19137 Check Date: 03/18/2021 Vendor: TAI02 Tait & Associates Inc 137206 Arterial St Resurface Prog \ Arteria Check No: 19138 Check Date: 03/18/2021 Vendor: TCTI 78529 Services Feb 2021 Check No: 19139 Check Date: 03/18/2021 Vendor: TEN01 917687213 Two (2) each, Main sweeping broom fo 917687213 One (1) each, Side brush for sweeper Check No: 19140 Check Date: 03/18/2021 51703670 Water Well Rehab Bolsa Chica \1 Check No: 19141 Check Date: 03/18/2021 843931978 Services Feb 2021 Check No: 19142 Check Date: 03/18/2021 0021291022621 Services 2-26 to 3-25-2021 0021804030121 Services 3-1 to 3-31-2021 0342770022421 Services 2-24 to 3-23-2021 0010765030421 Services 3-4 to 4-3-2021 0245858030521 Services 3-5 to 4-4-2021 0021812030621 Services 3-6 to 4-5-2021 0213294031021 Services 3-10 to 4-9-2021 0260410031021 Services 3-10 to 4-9-2021 Check No: 19143 Check Date: 03/18/2021 967863726 Services Ending 2-21-2021 Check No: 19144 Check Date: 03/18/2021 20204396 Building and Safety Services- Dec 20 20204397 19010 SB Plan Check- Dec 2020 20204380 Building and Safety Services- Nov 20 Check No: 19145 Check Date: 03/18/2021 522100840 Weekly Drinking Water 2-22-2021 Check No: 19146 Check Date: 03/18/2021 SB2102 Background Investigations -HM 3-2-21 Check No: 19147 Check Date: 03/18/2021 4756029-00 Std Flash 4761932-00 Cnt Black GEP 4762917-00 Std Flash 4764657-00 Master Reel/ Liquid Tight/ Couplings Check No: 19148 Check Date: 03/18/2021 dsb20200509 Services Feb 2021 Vendor: TET02 02/28/2021 Check Total: The Counseling Team Internatio 03/03/2021 Check Total: Tennant Sales & Service Co. 02/23/2021 02/23/2021 Check Total: Tetra Tech, Inc. 02/19/2021 Check Total: Vendor: THO17 Thomson Reuters --West 03/01/2021 Check Total: Vendor: TIM04 Time Warner Cable LLC 02/26/2021 03/01/2021 02/24/2021 03/04/2021 03/05/2021 03/06/2021 03/10/2021 03/10/2021 Check Total: Vendor: TMOI T -Mobile USA Inc. 02/21/2021 Check Total: Vendor: TRA29 Transtech Engineers, Inc 01/01/2021 01/01/2021 01/01/2021 Check Total: Vendor: tru01 ALS-Truesdail Laboratories, I 02/25/2021 Check Total: Vendor: TUNSTALLEdward Tunstall 03/02/2021 Check Total: Vendor: TUR10 Turtle & Hughes, Inc. 02/11/2021 02/16/2021 02/17/2021 02/18/2021 Check Total: Vendor: UNDOI Underground Sery Alert Sc 02/21/2021 Printed: 04/01/2021 16:24 Detail Check Amount 385.00 385.00 1,000.00 1,000.00 963.09 290.69 1,253.78 7,765.00 7,765.00 331.00 331.00 204.04 218.23 1,240.00 252.35 1,324.13 113.37 629.99 125.95 4,108.06 366.72 366.72 11, 573.76 12,141.31 10,437.12 34,152.19 186.25 186.25 800.00 800.00 73.33 12.93 14.65 126.69 227.60 110.37 Page 12 City of Seal Beach User:vrodriguez ,Invoice No Description Accounts Payable Checks by Date - Detail by Check Number Reference Invoice Date Check No: 19149 Check Date: 03/18/2021 162856322-030 Tread cleaning plate rental for 101 Check No: 19150 Check Date: 03/18/2021 5517 Outfit new officer Rael-Brook with u Check No: 19151 Check Date: 03/18/2021 AR0030257 Public Works Mngment 4/6-13/Wekerle AR0030258 Public Works Mngment 3/18- 23/Wekerl AR0030259 Public Works Mngment 3/31- Wekerle AR0030256 Public Works Mngment 2-18-25/Wekerle AR0030257 Public Works Mngment 4/6-13/Talarico AR0030258 Public Works Mngment 3/18- 23/Talari AR0030259 Public Works Mngment 3-31/Talarico AR0030256 Public Works Mngment 2-18-25/Talaric Vendor: UN121 Vendor: UNI32 Vendor: uni39 Check No: 19152 Check Date: 03/18/2021 Vendor: VER13 69055 Vermont Systems Migration -Recreation Check No: 19153 Check Date: 03/18/2021 Vendor: VER18 9874043627 Services 1-24 to 2-23-2021 9874043627 Services 1-24 to 2-23-2021 9874043627 Services 1-24 to 2-23-2021 9874043627 Services 1-24 to 2-23-2021 Check No: 19154 Check Date: 03/18/2021 Vendor: VOY02 869017509109 Fuel 1-25 to 2-24-2021 Check No: 19155 Check Date: 03/18/2021 Vendor: VVM 52209 Badge 52196 Badge Repair 52210 Badges Check No: 19156 Check Date: 03/18/2021 142050-01 Instructor Pay 11-30-20 to 3-9-2021 Check No: 19157 Check Date: 03/18/2021 SB 1003 Incident reporting and dispatching s Check No: 19158 Check Date: 03/18/2021 72195C Spring Lamp Check No: 19159 Check Date: 03/18/2021 1-6216 Basal Trunk Spray (Insecticide Treat Vendor: WASO4 Vendor: WAT21 Vendor: WES15 Vendor: WES17 Check Total: United Rentals Northwest, Inc. 02/11/2021 Check Total: Uniform Depot, Inc. 02/08/2021 Check Total: University of Wisconsin System 02/18/2021 02/18/2021 02/18/2021 02/18/2021 02/18/2021 02/18/2021 02/18/2021 02/18/2021 Check Total: Vermont Systems Inc. 02/23/2021 Check Total: Verizon Wireless 02/23/2021 02/23/2021 02/23/2021 02/23/2021 Check Total: US Bank Voyager Fleet System 02/24/2021 Check Total: V & V Manufacturing 03/04/2021 03/02/2021 03/04/2021 Check Total: Steve Wasserman 03/10/2021 Check Total: Watchtower Solutions Inc. 01/21/2021 Check Total: West -lite Supply Co Inc 02/09/2021 Check Total: West Coast Arborists, Inc. 09/14/2020 Check Total: Printed: 04/01/2021 16:24 Detail Check Amount 110.37 219.33 219.33 844.74 844.74 150.00 150.00 255.00 150.00 150.00 150.00 255.00 150.00 1,410.00 250.00 250.00 301.25 1,556.39 155.50 38.50 2,051.64 16,457.83 16,457.83 126.10 78.19 252.19 456.48 126.75 126.75 3,670.00 3,670.00 76.86 76.86 2,634.00 2,634.00 Page 13 City of Seal Beach Userwrodriguez C Invoice No Description Check No: 19160 Check Date: 03/18/2021 5114274 Stud 5114600 Sensor/ Wheel Assembly Check No: 19161 Check Date: 03/18/2021 3 Cold mist sanitation Check No: 19162 Check Date: 03/18/2021 SEALBREV08 SB Pub Fin Auth Lease 1-09FA SEALBREV08 SB Pub Fin Auth Lease 1-09FA SEALBREV08 SB Pub Fin Auth Lease 1-09FA SEALBREV08 SB Pub Fin Auth Lease 1-09FA SEALBREV08 SB Pub Fin Auth Lease 1-09FA Accounts Payable Ch by Date - Detail by Check Number Ref erence Invoice Date Vendor: WOR09 Worthington Ford 02/23/2021 03/01/2021 Check Total: Vendor: YOUNGS Bradford Ryan Youngs 01/05/2021 Check Total: Vendor: WEI16 Wells Fargo Bank 02/16/2021 02/16/2021 02/16/2021 02/16/2021 02/16/2021 Check Total: California State Disbursement 03/24/2021 Check Total: Check No: 19163 Check Date: 03/26/2021 Vendor: CAL146 PR Batch 6 3 2021 Case No 2000000021 Check No: 19164 Check Date: 03/26/2021 Vendor: cea City Employees Associates PR Batch 6 3 2021 SBMMA Dues - CEA 03/24/2021 Check Total: Check No: 19165 Check Date: 03/26/2021 PR Batch 6 3 2021 SBSPA Dues (CEA) Check No: 19166 Check Date: 03/26/2021 PR Batch 6 3 2021 OCEA Dues Check No: 19167 Check Date: 03/26/2021 PR Batch 6 3 2021 PMA Dues Check No: 19168 Check Date: 03/26/2021 PR Batch 6 3 2021 POA Dues Check No: 19169 Check Date: 03/26/2021 PR Batch 6 3 2021 SBMSMA Dues Vendor: CIT48 SBSPA 03/24/2021 Check Total: Vendor: OCE01 O.C.E.A. Printed: 04/01/2021 16:24 Detail Check Amount 03/24/2021 Check Total: Vendor: PMA Seal Beach Police Management Association 03/24/2021 Check Total: Vendor: POA01 Seal Beach Police Officers Assoc 03/24/2021 Check Total: Vendor: SBMSMA SBMSMA 03/24/2021 Check Total: Check No: 19170 Check Date: 03/26/2021 Vendor: USB US Bank Pars 6746022400 PR Batch 6 3 2021 PARS Employee Port 03/24/2021 PR Batch 6 3 2021 PARS Employer Port 03/24/2021 Check Total: Check No: 19171 Check Date: 04/01/2021 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19172 Check Date: 04/01/2021 COVID-19/3 COVID-19 Small Business Grant Progra Vendor: ABB07 The Abbey 03/31/2021 Check Total: Vendor: BEA21 Beach Cottage Day Spa 03/31/2021 Check Total: 11.01 1,064.49 1,075.50 530.00 530.00 116,685.87 -0.63 -116,685.87 105,000.00 11,686.50 116,685.87 372.46 372.46 73.84 73.84 207.72 207.72 216.04 216.04 400.00 400.00 1,350.00 1,350.00 34.62 34.62 2,401.55 503.54 2,905.09 3,500.00 3,500.00 3,500.00 3,500.00 Page 14 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 Userwrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description Reference Invoice Date Check Amount Check No: 19173 Check Date: 04/01/2021 Vendor: BEA22 Beach Body Design COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 3,500.00 Check Total: 3,500.00 Check No: 19174 Check Date: 04/01/2021 Vendor: BIS05 Bistro St. Germain COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 3,500.00 Check Total: 3,500.00 Check No: 19175 Check Date: 04/01/2021 Vendor: CLA25 Clancys Saloon Inc COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 3,500.00 Check Total: 3,500.00 Check No: 19176 Check Date: 04/01/2021 Vendor: DOJ02 Dojo by Leo Vieira, LLC COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 3,500.00 Check Total: 3,500.00 Check No: 19177 Check Date: 04/01/2021 Vendor: ISL03 Island Restaurants LLC COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 3,500.00 Check Total: 3,500.00 Check No: 19178 Check Date: 04/01/2021 Vendor: MCK06 McKenna's Tea Cottage COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 3,500.00 Check Total: 3,500.00 Check No: 19179 Check Date: 04/01/2021 Vendor: PAT16 Pathivara Threading Salon COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 3,500.00 Check Total: 3,500.00 Check No: 19180 Check Date: 04/01/2021 Vendor: PAT17 Patty's Place Restaurant COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 3,500.00 Check Total: 3,500.00 Check No: 19181 Check Date: 04/01/2021 Vendor: PEA07 Peachwave Yogurt COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 Check Total: Check No: 19182 Check Date: 04/01/2021 Vendor: PHUNG02 Vittorio Nu Phung COVID-19/3 COVID-19 Small Business Grant Progra 03/31/2021 Check Total: Check No: 19183 Check Date: 04/01/2021 Vendor: PR122 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19184 Check Date: 04/01/2021 Vendor: PUR08 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19185 Check Date: 04/01/2021 Vendor: ROD04 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19186 Check Date: 04/01/2021 Vendor: SAN001 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19187 Check Date: 04/01/2021 Vendor: SBHOI COVID-19/3 COVID-19 Small Business Grant Progra Tahvi LLC 03/31/2021 Check Total: Pure Barre Rossmoor 03/31/2021 Check Total: Rodden Enterprises 03/31/2021 Check Total: San Yume Sushi Inc. 03/31/2021 Check Total: SB Happy Nails & Spa, Inc. 03/31/2021 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 Page 15 City of Sea] Beach User:vrodriguez Invoice No Description Accounts Payable Checks by Date - Detail by Check Number Reference Invoice Date Check No: 19188 Check Date: 04/01/2021 Vendor: SOL07 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19189 Check Date: 04/01/2021 Vendor: SOL08 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19190 Check Date: 04/01/2021 Vendor: STU08 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19191 Check Date: 04/01/2021 Vendor: UPS03 COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19192 Check Date: 04/01/2021 Vendor: YUC COVID-19/3 COVID-19 Small Business Grant Progra Check No: 19193 Check Date: 04/01/2021 Vendor: 714 2061 Body & paint work to PD patrol unit 2062 Body & paint work to PD patrol unit Check No: 19194 Check Date: 04/01/2021 Vendor: AKM01 0010958 City Standard Plans Update/Sewer-Feb 0010959 Pump Station 35 Upgrade Proj-Feb 202 Check No: 19195 Check Date: 04/01/2021 Vendor: AME01 42471 Services March 2021 Check No: 19196 Check Date: 04/01/2021 Vendor: AME14 4268 AWWA Operator Symposium 2021 -Water 4269 Operator Symposium 2021 - 1 x water Check No: 19197 Check Date: 04/01/2021 Vendor: ame73 S124228 Services March 2021 Check No: 19198 Check Date: 04/01/2021 Vendor: ARA05 589000089650 Floor mat service (City Hall & City 589000089651 Floor mat service (City Hall & City 589000089650 Floor mat service (City Hall & City 589000089651 Floor mat service (City Hall & City Check No: 19199 Check Date: 04/01/2021 Vendor: bay08 354834 Return- Orig Inv 354833/ Towels 354565 Key Cutting 354833 White Knit T -Shirts 354542 Allthread/ U -Bolt/ Screws/ Washers 354468 Bleach/ Simple Green Check Total: Solaimani Enterprises Inc 03/31/2021 Check Total: Solara Nail Bar 03/31/2021 Check Total: The Studio Seal Beach 03/31/2021 Check Total: Upstairs Downstairs Hair Salon 03/31/2021 Check Total: Yucatan Grill 03/31/2021 Check Total: 714 Collision Center Inc 02/19/2021 02/19/2021 Check Total: AKM Consulting Engineers 03/11/2021 03/11/2021 Check Total: American Heritage Life 03/05/2021 Check Total: American Water Works Assoc. 03/15/2021 03/15/2021 Check Total: American Elevator Services Inc 03/01/2021 Check Total: Aramark Uniform Services 03/11/2021 03/11/2021 03/11/2021 03/11/2021 Check Total: Bay Hardware 03/09/2021 02/18/2021 03/09/2021 02/16/2021 02/10/2021 Printed: 04/01/2021 16:24 Detail Check Amount 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00 9,794.97 2,881.91 12,676.88 19,984.50 577.00 20,561.50 13.00 13.00 1,450.00 450.00 1,900.00 Page 16 90.00 90.00 55.34 49.14 55.34 49.13 208.95 -13.98 2.51 15.20 10.29 32.55 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description Reference Invoice Date Check Amount 354834 Turkish Towels 03/09/2021 17.85 354774 Fishing Line 03/05/2021 3.90 354574 Tube Cutter/ Key Cutting 02/18/2021 16.76 354346 Spade Bit 02/02/2021 8.80 354336 9V Batteries 02/01/2021 6.50 354373 Sweeper Nozzle/ Leather Gloves 02/03/2021 24.45 354349 Epoxy/ Hand Truck 02/02/2021 74.16 354414 Compound/ Buffing Wheel/ Batteries 02/06/2021 78.10 354549 Tower Ceramic Heater 02/17/2021 70.68 354642 Ball Valve/ Brass Nipple 02/23/2021 16.62 354630 Hose Clamps/ Vent Clamps 02/22/2021 10.99 354759 Key Cutting/ Gloves/ Towels/ Washers 03/05/2021 75.87 354868 Gorilla Grip Gloves 03/12/2021 14.12 354867 Galvanized Bushing/ Plugs/ Valves 03/12/2021 86.58 354930 PVC Cement/ Primer Pack 03/17/2021 8.80 354697 Hose Clamp/ Air Gun Plug 02/26/2021 6.88 000337 Hybrid Hose Reel 02/26/2021 68.50 Check Total: 636.13 Check No: 19200 Check Date: 04/01/2021 Vendor: BOLIN Nicholas Bolin 03.18.2021 Edu Reimb. Winter 2021/1-20 to 3-18- 03/18/2021 975.00 Check Total: 975.00 Check No: 19201 Check Date: 04/01/2021 Vendor: BOUO2 Bound Tree Medical, LLC 83969453 Gloves/ Sharps Containers 02/26/2021 56.26 83969452 Auto -Injector Trainer 02/26/2021 71.98 83971305 Brackets/ Gloves/Sharp Containers 03/01/2021 175.69 Check Total: 303.93 Check No: 19202 Check Date: 04/01/2021 Vendor: BUS08 BUSINESS CARD 2525/3-21 Supplies 03/10/2021 11.84 2525/3-21 Membership Dues 03/10/2021 110.00 2525/3-21 Membership Dues 03/10/2021 150.00 2525/3-21 Cert. of Achievement App for Annual 03/10/2021 530.00 2525/3-21 Dell Wireless Keyboard & Mouse 03/10/2021 105.00 2525/3-21 Dell Optiplex Desktop Computers 03/10/2021 1,272.39 2525/3-21 Dell LCD Monitors 03/10/2021 451.05 2525/3-21 WiFi Antennas and Wall Power Supply 03/10/2021 43.25 2525/3-21 30W Gig PoE & Injector Adapter 03/10/2021 36.76 2525/3-21 Webcams with Microphones 03/10/2021 54.06 2525/3-21 Zoom 03/10/2021 16.49 2525/3-21 CPCA Annual Training Symposium 03/10/2021 299.00 2525/3-21 Street Survival Seminar 03/10/2021 199.00 2525/3-21 Condensation Pump for Server Room 03/10/2021 74.66 2525/3-21 Phone Recorder Devices 03/10/2021 103.26 2525/3-21 Liftmaster Gate Openers 03/10/2021 117.50 2525/3-21 Kiosk Broser Licenses 03/10/2021 73.60 2525/3-21 International Transaction Fee 03/10/2021 2.21 2525/3-21 Credit/ Amazon 03/10/2021 -1,322.39 2525/3-21 LED Stop Sign 03/10/2021 238.87 2525/3-21 Community Surveys 03/10/2021 900.00 2525/3-21 Community Surveys 03/10/2021 384.00 2525/3-21 Community Survey- Credit 03/10/2021 -900.00 2525/3-21 Emergency Declaration 2020 \ Emergen 03/10/2021 367.24 2525/3-21 SWAT Team Leader Training 03/10/2021 690.00 2525/3-21 SWAT Team Leader Training 03/10/2021 690.00 2525/3-21 Junior Lifeguard Supplies 03/10/2021 500.00 2525/3-21 Lifeguard Supplies 03/10/2021 285.15 2525/3-21 Lifeguard Supplies 03/10/2021 361.50 Page 17 City of Seal Beach User:vrodriguez Invoice No Description Accounts Payable Checks by Date - Detail by Check Number Reference Invoice Date Check No: 19203 Check Date: 04/01/2021 Vendor: C301 INV129661 Services 2-13 to 3-12-2021 INV 129660 Services 2-15 to 4-14-2021 Check No: 19204 Check Date: 04/01/2021 Vendor: CAL99 11505775 CA Labor Law Posters Check No: 19205 Check Date: 04/01/2021 Vendor: CIN04 4077835009 Uniform Services 3-8-2021 4078486053 Uniform Services 3-15-2021 4077835009 Uniform Services 3-8-2021 4078486053 Uniform Services 3-15-2021 4077835009 Uniform Services 3-8-2021 4078486053 Uniform Services 3-15-2021 4077835009 Uniform Services 3-8-2021 4078486053 Uniform Services 3-15-2021 4077835009 Uniform Services 3-8-2021 4078486053 Uniform Services 3-15-2021 4077835009 Uniform Services 3-8-2021 4078486053 Uniform Services 3-15-2021 Check No: 19206 Check Date: 04/01/2021 Vendor: CIN04 1902037552 One (1) each, Carhartt sandstone act Check No: 19207 Check Date: 04/01/2021 Vendor: CIT04 99463CR Services April 2021 Check No: 19208 Check Date: 04/01/2021 Vendor: CIV02 2021022 CDBG Leisure World Bthrm Grant -Jan 2 Check No: 19209 Check Date: 04/01/2021 Vendor: CLI06 955011141 HVAC computer system controls at PD Check No: 19210 Check Date: 04/01/2021 Vendor: COA21 17891 Surveying & Entitlement Research -Jan 17891 Surveying & Entitlement Research -Jan Check No: 19211 Check Date: 04/01/2021 Vendor: COL34 634606 Services 1-12 to 1-26-2021 Check No: 19212 Check Date: 04/01/2021 Vendor: COM34 02.28.2021 Senior Nutrition Program for Meals -F Check No: 19213 Check Date: 04/01/2021 Vendor: COM46 I21-1826 Chemicals Delivered 3-17-2021 121-1742 Chemicals Delivered 3-10-2021 I21-1678 Chemicals Delivered Feb 2021 Check Total: C3 Technology Services 03/16/2021 03/16/2021 Check Total: California Chamber of Commerce 01/19/2021 Check Total: Cintas Corporation # 640 03/08/2021 03/15/2021 03/08/2021 03/15/2021 03/08/2021 03/15/2021 03/08/2021 03/15/2021 03/08/2021 03/15/2021 03/08/2021 03/15/2021 Check Total: Cintas Corporation # 640 03/12/2021 Check Total: City Of Long Beach 04/01/2021 Check Total: Civicstone, Inc. 02/16/2021 Check Total: Climatec LLC 03/04/2021 Check Total: Coast Surveying, Inc. 02/11/2021 02/11/2021 Check Total: Colorado Bankers Life 02/01/2021 Check Total: Community Senior Serv. Inc 02/28/2021 Check Total: Commercial Aquatic Services 03/19/2021 03/10/2021 02/28/2021 Printed: 04/01/2021 16:24 Detai 1 Check Amount 5,844.44 123.39 1,570.38 1,693.77 166.28 166.28 4.39 4.39 4.27 4.27 18.76 37.49 35.16 35.16 29.93 29.93 8.80 8.80 221.35 162.61 162.61 321.60 321.60 5,335.00 5,335.00 445.00 445.00 2,305.25 2,305.25 4,610.50 10.00 10.00 5,000.00 5,000.00 Page 18 339.59 233.99 197.11 City of Seal Beach User:vrodriguez Invoice No Description I21-1579 Pool Services - Feb 2021 I21-1653 Chemicals Delivered 3-2-2021 121-1675 Chemicals Delivered 3-3-2021 I21-1706 Chemicals Delivered 3-8-2021 Accounts Payable Checks by Date - Detail by Check Number Reference Invoice Date Check No: 19214 Check Date: 04/01/2021 Vendor: COM47 67932 Janitorial Contract- Building- Feb 2 71623271 67933 Janitorial Beach Facilities -Feb 2021 Check Date: 04/01/2021 Vendor: DIG03 Check No: 19215 Check Date: 04/01/2021 Vendor: CON38 278044 5 Genetec Mobile Clients, configurat GovClarity 2-13-21 to 2-12-2022 Check No: 19216 Check Date: 04/01/2021 Vendor: COR23 RS4676171 Services Feb 2021 GovClarity 2-13-21 to 2-12-2022 Check No: 19217 Check Date: 04/01/2021 Vendor: CUS01 24229 CDBG Bathroom Access Grant-Kurbatzky 24231 CDBG Bathroom Access Grant-Haro 55A 24243 CDBG Bathroom Access Grant -Nguyen 19 24249 CDBG Bathroom Access Grant- Hann 4 1 E Check No: 19218 Check Date: 04/01/2021 150901 Field Welder for Fence Repairs Check No: 19219 Check Date: 04/01/2021 0221-560 Services Feb 2021 Vendor: CWR Printed: 04/01/2021 16:24 Detail 02/28/2021 03/02/2021 03/03/2021 03/08/2021 Check Total: Commercial Building Management 03/01/2021 03/01/2021 Check Total: Convergint Technologies LLC 01/12/2021 Check Total: CORODATA 02/28/2021 Check Total: Custom Glass 03/10/2021 03/11/2021 03/16/2021 03/19/2021 Check Total: CW Industries 03/19/2021 Check Total: Vendor: DELO1 Delta Elevator 02/28/2021 Check Total: Check No: 19220 Check Date: 04/01/2021 Vendor: DEL12 71623271 Services 3-13 to 4-12-2021 71623271 Services 3-13 to 4-12-2021 71623271 Services 3-13 to 4-12-2021 Check No: 19221 Check Date: 04/01/2021 Vendor: DIG03 INVDMP00564 GovClarity 2-13-21 to 2-12-2022 INVDMP00564 GovClarity 2-13-21 to 2-12-2022 INVDMP00564 GovClarity 2-13-21 to 2-12-2022 INVDMP00564 GovClarity 2-13-21 to 2-12-2022 INVDMP00564 GovClarity 2-13-21 to 2-12-2022 INVDMP00564 GovClarity 2-13-21 to 2-12-2022 Check No: 19222 Check Date: 04/01/2021 Vendor: DIS14 20232100046C65CLUTTV-20-D-1 K9Y-6K69 20232092902C65CLUTTV-20-D-1 K9Y-6K70 20220133435C65CLUTTV-20-D-1 K9Y Check No: 19223 Check Date: 04/01/2021 Vendor: DIX 2772 Services Feb 2021 De Lage Landen Public Finance 03/01/2021 03/01/2021 03/01/2021 Check Total: Digital Map Products, LP 02/13/2021 02/13/2021 02/13/2021 02/13/2021 02/13/2021 02/13/2021 Check Total: Disbursing Officer DFAS-CL 09/08/2020 09/08/2020 08/20/2020 Check Total: Dixon Resources Unlimited 02/28/2021 Check Total: Check Amount 575.00 140.90 245.74 203.53 1,935.86 8,486.00 5,791.00 14,277.00 2,648.00 2,648.00 415.49 415.49 905.00 905.00 905.00 905.00 3,620.00 189.62 189.62 230.72 230.72 2,391.94 2,006.54 213.25 4,611.73 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 18,000.00 3,005.63 11,541.83 20,412.94 34,960.40 4,556.25 4,556.25 Page 19 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description Reference Invoice Date Check Amount Check No: 19224 Check Date: 04/01/2021 Vendor: DOS03 Dossier Systems 48691 Quarterly billing for Dossier On Dem 02/28/2021 1,656.00 Check Total: 1,656.00 Check No: 19225 Check Date: 04/01/2021 Vendor: EFF02 Efficient X -Ray, Inc. 354301 Biohazardous Waste/ Sharps Container 03/02/2021 72.05 Check Total: 72.05 Check No: 19226 Check Date: 04/01/2021 Vendor: eng08 Engineering Solutions Services 2010-116B Prop 68 Regionwide Grant Program - 02/25/2021 8,233.75 2010-116A Prop 68 Regionwide Grant Program - 12/15/2020 1,515.00 Check Total: 9,748.75 Check No: 19227 Check Date: 04/01/2021 Vendor: FAR8 Farmers & Merchants Bank 67-12501CU/4-21Rossmoor Rent April 2021 04/01/2021 951.93 Check Total: 951.93 Check No: 19228 Check Date: 04/01/2021 Vendor: FEBOI Tony Febbriello W20936 Reimb Water Distribution Cert Renewa 03/11/2021 80.00 Check Total: 80.00 Check No: 19229 Check Date: 04/01/2021 Vendor: FED01 FedEX 398810948260 Freight Charges 11/23/2020 85.09 Check Total: 85.09 Check No: 19230 Check Date: 04/01/2021 Vendor: FOR09 Robin Forte-Lincke W21243 T.V. Origination Services -Payment #1 03/23/2021 1,453.50 Check Total: 1,453.50 Check No: 19231 Check Date: 04/01/2021 Vendor: GAN04 Ganahl Lumber Co. 060681350 Fast Cure Adhesive/ Lag Screws 03/04/2021 175.07 Check Total: 175.07 Check No: 19232 Check Date: 04/01/2021 Vendor: GARDNER41aige Gardner W21198 Overpayment Bus. Lic/ Rec # 581258 03/17/2021 109.50 Check Total: 109.50 Check No: 19233 Check Date: 04/01/2021 Vendor: GHD GHD Inc 158521 Navy Reservoir Cathodic Protect./Feb 03/11/2021 1,170.89 Check Total: 1,170.89 Check No: 19234 Check Date: 04/01/2021 Vendor: GRA08 Grainger 9837404475 Rain Jacket 03/15/2021 42.73 Check Total: 42.73 Check No: 19235 Check Date: 04/01/2021 Vendor: GRA36 Granite Telecommunications LLC 513290286 Services March 2021 03/01/2021 1,332.56 Check Total: 1,332.56 Check No: 19236 Check Date: 04/01/2021 Vendor: GTT GTT Communications, Inc. INV4644841 Services 2-1 to 3-31-2021 03/01/2021 687.08 Check Total: 687.08 Check No: 19237 Check Date: 04/01/2021 Vendor: HAC01 Hach Company 12361209 Six (6) each, Chlorine Reagent set f 03/10/2021 232.21 12363577 One (1) each, DR 300 Pocket Chlorime 03/11/2021 508.95 Check Total: 741.16 Page 20 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description Reference Invoice Date Check Amount Check No: 19238 Check Date: 04/01/2021 Vendor: HAR38 Harbor Party Rentals 26682 Rental: Chairs/Tables for outdoor di 03/09/2021 194.81 Check Total: 194.81 Check No: 19239 Check Date: 04/01/2021 Vendor: HAR39 Hardy & Harper. Inc. 47194 Retention 02/26/2021 -208.16 47194 Annual Local Paving Program \ Annual 02/26/2021 4,163.26 Check Total: 3,955.10 Check No: 19240 Check Date: 04/01/2021 Vendor: HAZ03 Hazzard Backflow Inc 24319 Backflow repairs 02/17/2021 500.00 Check Total: 500.00 Check No: 19241 Check Date: 04/01/2021 Vendor: HDLO1 Hinderliter, del Llamas & Asso SIN007110 Q3/2020/ Contract Services -Sales Tax 03/12/2021 1,878.77 Check Total: 1,878.77 Check No: 19242 Check Date: 04/01/2021 Vendor: HIG02 Highway Safety, Inc. 113054 Two TraffiCalm Flasher Rings and con 03/01/2021 2,434.30 Check Total: 2,434.30 Check No: 19243 Check Date: 04/01/2021 Vendor: HOMO] Home Depot Credit Services WM33885301 Carbon Monoxide Detector 03/15/2021 21.72 3023980 Paint/ Battery 03/10/2021 48.25 670018 Bosch Router 01/22/2021 249.04 5151513 Floor Scraper/ Pro Step Stool 03/08/2021 85.87 73722 Trigger Clamps/ Edge Sander/Angle Cl 01/22/2021 347.99 7257093 Heavy Duty 2-Speed Thickness 01/25/2021 705.79 7614612 Tough Tote/ Bit Set 01/25/2021 96.92 6415126 Mobile Thickness Planer Stand 01/26/2021 160.78 4122012 Electronic Fixed Base 01/28/2021 183.79 4323488 Floor Drill Press with Laser 01/28/2021 705.79 3226266 Bearing Flush/ Tipped Template 01/29/2021 225.15 Check Total: 2,831.09 Check No: 19244 Check Date: 04/01/2021 Vendor: IES01 IES Commercial Inc 179919RV Traffic Light Fusion Splice 03/04/2021 4,814.14 Check Total: 4,814.14 Check No: 19245 Check Date: 04/01/2021 Vendor: L&R Getabag 21540 Equipment bags for response units 03/17/2021 848.95 Check Total: 848.95 Check No: 19246 Check Date: 04/01/2021 Vendor: LON25 Long Beach BMW 213087 Battery AGM 03/10/2021 333.86 39719 Aux Battery 03/09/2021 -254.18 Check Total: 79.68 Check No: 19247 Check Date: 04/01/2021 Vendor: LOS47 Los AL Builders LLC W21090 Overpayment- Permit 2021-396 03/22/2021 3,000.00 Check Total: 3,000.00 Check No: 19248 Check Date: 04/01/2021 Vendor: MCIO1 MCI Comm Services 7N484178 Services April 2021 03/19/2021 40.32 7DL26042 Services April 2021 03/11/2021 39.95 Check Total: 80.27 Check No: 19249 Check Date: 04/01/2021 Vendor: MCM03 Mcmaster-Carr 54355794 20 each, Laminated steel body padloc 03/05/2021 228.79 Page 21 City of Seal Beach Accounts Payable User:vrodriguez Checks by Date - Detail by Check Number Invoice No Description Reference Invoice Date 54355794 20 each, Laminated steel body padloc Check No: 19250 Check Date: 04/01/2021 10446 Water Deliveries Feb 2021 Check No: 19251 Check Date: 04/01/2021 1789 Art Work Set up/ Silk Screen/ Patche Check No: 19252 Check Date: 04/01/2021 MK558077-TDQ 48"x24" Table - Espresso Check No: 19253 Check Date: 04/01/2021 W21246 Returned Direct Deposit 3-7 to 3-21- 03/05/2021 Check Total: Vendor: MUN02 Municipal Water District of Or 03/15/2021 Check Total: Vendor: NAM03 Name Your Game, Inc. 01/27/2021 Check Total: Vendor: NatBusFu National Business Furniture 03/12/2021 Check Total: Vendor: NIELSENI Morgan Nielsen 03/31/2021 Check Total: Printed: 04/01/2021 16:24 Detail Check Amount 266.44 495.23 8,921.78 8,921.78 285.43 285.43 633.57 633.57 361.03 361.03 Check No: 19254 Check Date: 04/01/2021 Vendor: NU01 NU Kote 12.14.20 CDBG Bathroom Access Grant -Nguyen 19 12/14/2020 1,910.00 03.08.21 CDBG Bathroom Access Grant-Haro 55A 03/08/2021 1,910.00 03.15.21 CDBG Bathroom Access Grant -Hann 41E 03/15/2021 1,910.00 Check Total: 5,730.00 Check No: 19255 Check Date: 04/01/2021 Vendor: OFF05 Office Depot, Inc. 156202569001 Notebook 03/06/2021 7.06 156194006001 Folders 03/12/2021 84.59 Check Total: 91.65 Check No: 19256 Check Date: 04/01/2021 Vendor: OFF]I Office Solutions Business Prod I-01849435 Antimcbl Pocket 03/03/2021 11.06 1-01848357 Battery 03/01/2021 12.50 1-01852350 Pens/ Cups/ Coffee 03/11/2021 59.09 Check Total: 82.65 Check No: 19257 Check Date: 04/01/2021 Vendor: ONP05 On Point Exterminating Inc 7628 Pest Control Edison Park -March 2021 03/09/2021 150.00 7873 Pest Control Fire Station 48- Mar. 2 03/17/2021 500.00 Check Total: 650.00 Check No: 19258 Check Date: 04/01/2021 Vendor: ORI03 Original Watermen, Inc. S70294 600 stingray bags 03/08/2021 1,347.72 S70294 Fin belts for RWC operators 03/08/2021 418.47 Check Total: 1,766.19 Check No: 19259 Check Date: 04/01/2021 Vendor: OWE02 Owen Group Limited Partnership 6289 Annual Concrete Repair Prog \ Annual 11/25/2020 11,635.00 Check Total: 11,635.00 Check No: 19260 Check Date: 04/01/2021 Vendor: PAC66 Pacific Rim Mechanical SRV127388 Replace Condensation Pump 02/28/2021 344.69 Check Total: 344.69 Check No: 19261 Check Date: 04/01/2021 Vendor: PCS Monica Caruso 2461 Contract Steam Cleaning -March 2021 03/01/2021 10,825.00 Check Total: 10,825.00 Page 22 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description Reference Invoice Date Check Amount Check No: 19262 Check Date: 04/01/2021 Vendor: PFM PFM Asset Management LLC SMA-M0221-2241&estment Advisory Services- Feb 20 02/28/2021 2,138.08 SMA-M0121-218Mestment Advisory Services Jan 202 01/31/2021 2,364.02 Check Total: 4,502.10 Check No: 19263 Check Date: 04/01/2021 Vendor: PLP01 P.L. Perrin & Associates 21-03 Polygraph - HM 03/11/2021 250.00 Check Total: 250.00 Check No: 19264 Check Date: 04/01/2021 Vendor: PSI02 PSI 27588 Single Wire Hose 03/11/2021 92.43 Check Total: 92.43 Check No: 19265 Check Date: 04/01/2021 Vendor: QUI09 Quinn Power Systems W0370157339 Semi Annual Inpection 03/10/2021 662.50 W0370157341 Preventative Maintenance for West En 03/10/2021 517.50 Check Total: 1,180.00 Check No: 19266 Check Date: 04/01/2021 Vendor: REA03 Ready Refresh by Nestle I IC0027940022 Services 2-15 to 3-14-2021 03/17/2021 82.87 Check Total: 82.87 Check No: 19267 Check Date: 04/01/2021 Vendor: RED01 Red Wing Business Advantage 789-99-2470331 Work Boots- Porter 03/09/2021 249.56 789-99-2469168 Work Boots- Utsler 03/01/2021 250.00 789-99-2469098 Work Boots- Tobin 02/26/2021 250.00 Check Total: 749.56 Check No: 19268 Check Date: 04/01/2021 Vendor: RICO2 Richards Watson & Gershon 230580 Franchises- Jan 2021 02/17/2021 395.25 230581 Acq. of City Property by OCTA- Jan 2 02/17/2021 1,383.41 230582 VS. Cal Resources Corp Long Beach-Ja 02/17/2021 16,577.21 230579 Additional Services- Jan 2021 02/17/2021 144.29 Check Total: 18,500.16 Check No: 19269 Check Date: 04/01/2021 Vendor: R0007 Roofing Standards W21089 Overpayment on Building Permit/Rec58 03/23/2021 54.00 Check Total: 54.00 Check No: 19270 Check Date: 04/01/2021 Vendor: RPW RPW Services, Inc. 23507 Gopher Control/Arbor Park -Feb 2021 02/23/2021 307.50 23508 Gopher Control/Fire Dept- Feb 2021 02/23/2021 130.00 23509 Rodent Control/City Parks- Feb 2021 02/26/2021 2,030.00 Check Total: 2,467.50 Check No: 19271 Check Date: 04/01/2021 Vendor: SAF10 Safeshred Company, Inc. 322647 Services Feb 2021 02/28/2021 15.00 322646 Services Feb 2021 02/28/2021 54.00 Check Total: 69.00 Check No: 19272 Check Date: 04/01/2021 Vendor: SAV07 Save the Day Restoration W21239 Suspended lic/Can not Issue/Rec #582 03/18/2021 223.00 Check Total: 223.00 Check No: 19273 Check Date: 04/01/2021 Vendor: SCE01 Southern Calif. Edison 2257328971/3-21Services 2-19 to 3-20-2021 03/22/2021 1,375.25 2024029720/3-2 1 Services 2-16 to 3-17-2021 03/19/2021 1,804.30 2277171120/3-21 Services 2-19 to 3-20-2021 03/22/2021 14.14 2278053483/3-21Services 2-19 to 3-20-2021 03/22/2021 14.14 Page 23 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Description 223 1367996/3-2 1 Services 2-12 to 3-16-2021 2311180533/3-21Services 2-12 to 3-16-2021 2024029720/3 -2 1 Services 2-16 to 3-17-2021 2024049330/3-2 1 Services 2-19 to 3-20-2021 2353878846/3-21Services 2-11 to 3-15-2021 2361696818/3-21Services 2-11 to 3-15-2021 2345128151/3-21Services 2-16 to 3-17-2021 2024047656/3-2 1 Services 3-1 to 3-26-2021 2282924729/3-2 1 Services 3-1 to 3-26-2021 2214337602/3-21Services 2-12 to 3-16-2021 2332131176/3-21Services 2-12 to 3-16-2021 2418681128/3-21Services 2-16 to 3-17-2021 2415765056/3-2 ]Services 2-11 to 3-15-2021 Reference Check No: 19274 Check Date: 04/01/2021 Vendor: SEA10 W21245 Tranfer of Funds Invoice Date 03/18/2021 03/17/2021 03/19/2021 03/22/2021 03/16/2021 03/16/2021 03/18/2021 03/27/2021 03/27/2021 03/17/2021 03/17/2021 03/18/2021 03/18/2021 Check Total: Seal Beach Cable FDN 03/31/2021 Check Total: Check Amount 1,197.42 2,529.23 56.98 17.00 66.46 200.81 13.25 78.77 80.43 299.23 8,347.94 14.58 795.48 16,905.41 5,000.00 5,000.00 Check No: 19275 Check Date: 04/01/2021 Vendor: SEA33 Seal Beach Sun Newspaper 00103846 Housing Element Joint 03/04/2021 275.00 00103867 CUP 20-7 03/04/2021 310.00 00103709 NIB FY 20-21 Annual 02/25/2021 430.00 Check Total: 1,015.00 Check No: 19276 Check Date: 04/01/2021 Vendor: SECO2 Sectran Security, Inc. 21030441 Services March 2021 03/08/2021 505.67 Check Total: 505.67 Check No: 19277 Check Date: 04/01/2021 Vendor: SIE11 Siemens Mobility Inc 5610261786 Traffic Signal Maintenance -Feb 2021 03/18/2021 1,801.00 5620033926 Traffic Signal Response Calls Out -Fe 03/18/2021 3,018.92 5620034342 Repair Street Pole 03/18/2021 1,658.50 Check Total: 6,478.42 Check No: 19278 Check Date: 04/01/2021 Vendor: S0008 So. California Gas Co. 1483098500/3-21 Services 2-19 to 3-22-2021 03/24/2021 413.14 1630098500/3-21 Services 2-19 to 3-22-2021 03/24/2021 35.95 1672096500/3-21 Services 2-19 to 3-22-2021 03/24/2021 370.85 0895096603/3-2 1 Services 2-19 to 3-22-2021 03/24/2021 26.55 0349464457/3-21 Services 2-19 to 3-22-2021 03/24/2021 21.69 0286095705/3-2]Services 2-18 to 3-19-2021 03/23/2021 30.33 0391095700/3-21Services 2-18 to 3-19-2021 03/23/2021 554.03 0643 098600/3 -2 1 Services 2-19 to 3-22-2021 03/24/2021 459.33 1208091900/3-21Services 2-17 to 3-18-2021 03/22/2021 50.00 0811316591/3-21Services 2-19 to 3-22-2021 03/24/2021 21.69 0811937654/3-21Services 2-18 to 3-19-2021 03/23/2021 17.36 0349094500/3-2 1 Services 2-18 to 3-19-2021 03/23/2021 23.14 Check Total: 2,024.06 Check No: 19279 Check Date: 04/01/2021 Vendor: SOC11 So Cal Land Maintenance Inc. 9423 Landscape Maint.- Feb 2021 02/28/2021 19,928.13 9423 Landscape Maint.- Feb 2021 02/28/2021 5,829.86 9422 Landscape Maint- Feb 2021 03/11/2021 995.97 9423 Landscape Maint.- Feb 2021 02/28/2021 3,139.82 9423 Landscape Maint.- Feb 2021 02/28/2021 1,063.47 9423 Landscape Maint.- Feb 2021 02/28/2021 623.85 9423 Landscape Maint.- Feb 2021 02/28/2021 1,053.49 9422 Landscape Maint- Feb 2021 03/11/2021 30.03 9424 Beach Detail Weeding- Feb 2021 02/28/2021 1,560.00 Page 24 City of Seal Beach Accounts Payable Printed: 04/01/2021 16:24 User:vrodriguez Checks by Date - Detail by Check Number Detail Invoice No Descrytion Reference 9423 Landscape Maint.- Feb 2021 9423 Landscape Maint.- Feb 2021 9423 Landscape Maint.- Feb 2021 Check No: 19280 Check Date: 04/01/2021 Vendor: SPR10 TM INV -003765 New Rates Structure Quote TM INV -003765 New Rates Structure Quote Check No: 19281 Check Date: 04/01/2021 Vendor: STA65 02025272 12 each, Custom "Pickleball Court" s Check No: 19282 Check Date: 04/01/2021 Vendor: STA69 1764654 LCWA Watermain Lining \ LCWA Waterma 1763678 Lampson Ave ATP Bike Ln Grant -Feb 21 Check No: 19283 Check Date: 04/01/2021 Vendor: STE47 CA1367511 Service Lampson Well ST407924 Installation of 3 new brine tanks an ST407925 Installation of 3 new brine tanks an ST407926 Installation of 3 new brine tanks an Check No: 19284 Check Date: 04/01/2021 Vendor: SUR03 11420 Monthly Surfside Beach Maint.-Feb 20 Check No: 19285 Check Date: 04/01/2021 Vendor: SYN05 1189959 Lifeguard UPS 1 APC SMART -UPS X 150 1189876 1 Dell EqualLogic Support Renewal De 1188897 Office 365 2-1 to 3-22-2021 1189250 • Decommission the following servers 1189249 Decommission the following servers: 1188884 Datto Service Support April 2021 1188883 MDM- April 2021 Check No: 19286 Check Date: 04/01/2021 Vendor: TID02 2K21_049_01 Main Line Repl HellRanch/1-19 to 2-2 Check No: 19287 Check Date: 04/01/2021 Vendor: TIM04 0270666031921 Services 3-19 to 4-18-2021 0010799031821 Services 3-18 to 4-17-2021 Check No: 19288 Check Date: 04/01/2021 Vendor: TRA29 20204615 Building and Safety Services- Jan 20 20204616 19010 Seal B Plan Ck Services -Jan 20 Check No: 19289 Check Date: 04/01/2021 Vendor: tru01 522101138 Monthly Well Drinking Water Test 3-1 522101137 Weekly Drinking Water Testing -3-1-20 Invoice Date 02/28/2021 02/28/2021 02/28/2021 Check Total: Springbrook Holding Company LL 03/08/2021 03/08/2021 Check Total: Statewide Traffic Safety and S 03/11/2021 Check Total: Stantec Consulting Services In 03/12/2021 03/12/2021 Check Total: Step Saver CA LLC 03/03/2021 02/26/2021 02/26/2021 02/26/2021 Check Total: Surfside Colony Ltd 03/09/2021 Check Total: SYNOPTEK 03/17/2021 03/16/2021 02/28/2021 02/28/2021 02/28/2021 03/01/2021 03/01/2021 Check Total: Tidal Influence LLC 03/15/2021 Check Total: Time Warner Cable LLC 03/19/2021 03/18/2021 Check Total: Transtech Engineers, Inc 01/31/2021 01/31/2021 Check Total: ALS-Truesdail Laboratories, I 03/16/2021 03/16/2021 Check Total: Check Amount 228.22 3,525.33 1,823.74 39,801.91 528.12 528.13 1,056.25 189.23 189.23 9,478.75 2,412.28 11,891.03 633.57 1,365.56 1,365.56 1,365.56 4,730.25 3,424.24 3,424.24 888.25 2,717.18 2,036.84 250.00 250.00 2,023.65 141.75 8,307.67 8,171.50 8,171.50 118.75 116.64 235.39 11,600.00 8,398.07 19,998.07 Page 25 118.20 186.25 304.45 City of Seal Beach Accounts Payable User:vrodriguez Checks by Date - Detail by Check Number Invoice No Description Reference Invoice Date Check No: 19290 Check Date: 04/01/2021 Vendor: UNDO1 Underground Sery Alert Sc 220210660 Services Feb 2021 03/01/2021 dsb20201131 CA State Regulatory Costs- Feb 2021 03/01/2021 Check Total: Check No: 19291 Check Date: 04/01/2021 Vendor: UNI21 162856322-031 Tread cleaning plate rental /101 Loy 191308351-001 Roller 3-5 ton double drum smooth an Check No: 19292 Check Date: 04/01/2021 Vendor: USA04 532791 Two (2) each, Nalgene bottle HDPE NM 532791 Two (2) each, Bottle carrier w/ cove Check No: 19293 Check Date: 04/01/2021 Vendor: VER18 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 9874552207 Services 2-2 to 3-1-2021 United Rentals Northwest, Inc. 03/11/2021 03/05/2021 Check Total: USA Bluebook 03/16/2021 03/16/2021 Check Total: Verizon Wireless 03/01/2021 03/01/2021 03/01/2021 03/01/2021 03/01/2021 03/01/2021 03/01/2021 03/01/2021 03/01/2021 03/01/2021 03/01/2021 Check Total: Check No: 19294 Check Date: 04/01/2021 Vendor: WES77 West Marine Products Inc. / We 001084 Ring Cotter/ Quick Pin 02/26/2021 005772 Credit/ Quick Pin 02/27/2021 7623459 Binoculars for field towers 03/09/2021 7627680 Binoculars for field towers 03/10/2021 Check Total: Check No: 19295 Check Date: 04/01/2021 Vendor: WHI13 Liebert Cassidy Whitmore 1510140 ERC Membership/Premium- 2021 12/11/2020 Check Total: Check No: 19296 Check Date: 04/01/2021 Vendor: WOR09 Worthington Ford 5115790 Plug 03/16/2021 5115923 Gasket 03/17/2021 5115136 Insulator Assembly 03/08/2021 Check Total: Check No: 19297 Check Date: 04/01/2021 Vendor: YUM Yume Gardens LLC 29111 City Hall pond maintenance -Mar 2021 03/01/2021 Check Total: Report Total: Printed: 04/01/2021 16:24 Detail Check Amount 99.10 110.37 209.47 219.33 719.86 939.19 131.51 337.33 468.84 41.29 82.58 41.29 206.45 151.39 82.58 82.58 38.01 456.13 82.58 249.73 1,514.61 63.53 -17.86 883.84 72.98 1,002.49 4,325.00 4,325.00 16.29 20.24 271.61 308.14 260.00 260.00 2,981,784.66 Page 26 i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Gloria D. Harper, City Clerk SUBJECT: Resolution Denouncing Stigmatization, Racism, Hate, and Xenophobia Against Members of the Asian American and Pacific Islander Community SUMMARY OF REQUEST: That the City Council approve Resolution 7130 denouncing stigmatization, racism, hate and xenophobia against members of the Asian American and Pacific Islander community. BACKGROUND AND ANALYSIS: The Asian American and Pacific Islander (AAPI) community has been affected by a sharp increase in violence, abhorrent acts of racism, and stigmatization in the wake of the COVID-19 pandemic. Although, the COVID-19 virus is not caused by ethnicity, an increasing number of AAPIs and Asians worldwide have reported experiencing microaggression, racial profiling, hate incidents, and violence. In a recent report, the group STOP AAPI Hate cites reports of over 3,700 anti -Asian hate incidents from March 19, 2020 to February 28, 2021 and, sadly, the City of Seal Beach has become part of this statistic. On March 22, 2021, a Seal Beach (Leisure World) resident became the target of a hate crime after receiving an anonymous letter of hate and discrimination in their mailbox. The City of Seal Beach prides itself in providing the highest quality of service, ensuring that Seal Beach is a desirable and safe place to live, work, play, and do business; and is committed to inclusion and advancing equity and justice for people of all races, nations, origins, and ethnicities. The proposed resolution denounces AAPI hate and reaffirms the City's support of Seal Beach's AAPI community. The City of Seal Beach joins the County of Orange, local districts and cities across the state that have adopted similar resolutions including Westminster, Monrovia, Torrance, San Mateo, and San Agenda Item C Carlos. We stand in solidarity with the AAPI community, other cities, states and the nation against stigmatization, racism, hate and xenophobia. 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 approve Resolution 7130 denouncing Stigmatization, Racism, Hate and Xenophobia against the Asian American and Pacific Islander community. SUBMITTED BY: Gloria D. Harper Gloria D. Harper, City Clerk ATTACHMENTS: A. Resolution 7130 Page 2 NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager RESOLUTION 7130 RESOLUTION DENOUNCING STIGMATIZATION, RACISM, HATE AND XENOPHOBIA AGAINST MEMBERS OF THE ASIAN AMERICAN AND PACIFIC ISLANDER COMMUNITY WHEREAS, the City of Seal Beach prides itself in providing the highest quality of service, ensuring that Seal Beach is a desirable and safe place to live, work, play, and do business; while allowing residents and visitors equal access; WHEREAS, scientists have confirmed that COVID-19 does not respect boarders and is not caused by ethnicity, and the World Health Organization has cautioned against using geographic descriptors because they can fuel ethnic discrimination; and, WHEREAS, over 2,000,000 Asian Americans and Pacific Islanders are working on the front lines of the COVID-19 pandemic in health care, law enforcement, first response and transportation as well as services industries; and, WHEREAS, the Asian American Pacific Islander (AAPI) community has been affected by a sharp increase in violence, abhorrent acts of racism and stigmatization in the wake of the COVID-19 pandemic; and, WHEREAS, over 3700 incidents were received by the Stop AAPI Hate reporting center from March 19, 2020 to February 28, 2021, a figure that represents only a fraction of the number of hate incidents that actually occurred, but shows how vulnerable Asian Americans and Pacific Islanders are to discrimination, and the types of intolerance they face; and, WHEREAS, the City of Seal Beach specifically Leisure World is home to a large Asian American and Pacific Islander community, wherein one of its' residents was a recent victim of hate, discrimination and other acts of stigmatization; and, WHEREAS, the City of Seal Beach is committed to inclusion and advancing equity and justice for people of all races, nations, origins, and ethnicities; and, wishes to affirm its commitment to the well-being and safety of Asian American and Pacific Islander residents, students, employees, visitors, and community members, and ensure they know they are not alone and that they can speak out to help stop the spread of bigotry. NOW THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. The Seal Beach City Council strongly condemns and hereby denounces stigmatization, racism and xenophobia against Asian Americans and Pacific Islanders. SECTION 2. The Seal Beach City Council calls on local law enforcement to continue to work with State and Federal law enforcement officials to investigate and document all credible reports of COVID-19-related hate crimes and threats. SECTION 3. The Seal Beach City Council joins local districts, cities, counties and states across the country in affirming its commitment to the safety and well — being of the Asian Americans and Pacific Islanders community. SECTION 4. The City Clerk shall certify to the passage and adoption hereof. PASSED, APPROVED AND ADOPTED this 12th day of April, 2021 by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS Joe Kalmick, Mayor /Gr11111111*11 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 7130 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk AGENDA STAFF REPORT 41F DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Kelly Telford, CPA, Finance Director/Treasurer SUBJECT: City of Seal Beach Annual Audit Reports for Fiscal Year Ended June 30, 2020 SUMMARY OF REQUEST: That the City Council receive and file the following documents for fiscal year ending June 30, 2020: A. Comprehensive Annual Financial Report B. Audit Communication Letter C. Report on Internal Control D. Appropriations (GANN) Limit Agreed -Upon Procedures Report BACKGROUND AND ANALYSIS: The audit firm of The Pun Group Accountants & Advisors has completed the annual audit of the City of Seal Beach (City) for the fiscal year ended June 30, 2020. The audit was conducted in accordance with generally accepted auditing standards and included examining, on a test basis, evidence supporting the amounts and disclosures to obtain reasonable assurance that the financial statements are free of material misstatements. Based on the results of their audit, The Pun Group Accountants & Advisors provided the City with an unmodified opinion on the financial statements, which indicates that the City's financial statements are free of material misstatements and are in accordance with Generally Accepted Accounting Principles (GAAP). This is the best opinion the City could receive. The Council Audit Subcommittee, consisting of Mayor Kalmick and Mayor Pro Tem Varipapa, met with the City Manager, Assistant City Manager, Finance Director, and Finance Manager on March 30, 2021 to discuss the results of the annual audit, which are summarized below. Agenda Item D Comprehensive Annual Financial Report The Comprehensive Annual Financial Report (Attachment A) is a summary report of the financial transactions of the City for Fiscal Year 2019-20. The report is designed to provide summary financial information for all funds of the City. The financial statements were prepared in conformity with Generally Accepted Accounting Principles (GAAP) and comply with reporting requirements of the national Governmental Accounting Standards Board (GASB). During Fiscal Year 2019-20, the City of Seal Beach, along with cities across the nation, faced unprecedented economic uncertainty as a result of the COVID-19 pandemic. In March 2020, Governor Newsom issued a stay-at-home order that resulted in the City's revenue streams being significantly decreased. The City took swift action to address these declines with the departments taking deep cuts in operating expenditures. These cuts, coupled with reimbursements from insurance related to the pier fire and delays in capital improvement projects, allowed the City to close the fiscal year with an operating surplus of $5 million in the General Fund. This surplus is anticipated to be a timing difference and is expected to be spent in future years as capital improvement projects resume and one-time contracts are completed, all of which were delayed to the COVID-19 pandemic. It is important to note that this includes other funds grouped with the General Fund for financial statement purposes including the Waste Management Fund, Special Projects Fund, Local Emergency Fund, Tidelands Fund, and Parking In -Lieu. The City's Water Utility Fund has an operating deficit of $1.2 million. This was anticipated and discussed at length during 2020 as the City Council considered adjusting the water and sewer rates. With the City Council's approval of the new rates in February 2021, the operating deficit is expected to be resolved beginning in Fiscal Year 2021-22. The City received $1.1 million in CARES Act funding from the State of California and the County of Orange, which was used to provide small business assistance grants and fund COVID-19 related expenditures for the City. Other financial highlights can be found in the Management's Discussion and Analysis on page 5 of the Comprehensive Annual Financial Report. The Comprehensive Annual Financial Report was submitted to the Government Finance Officers Association to, once again, be considered for the Certificate of Achievement for Excellence in Financial Reporting. If awarded, this will be the 20th consecutive year the City will have received this distinguished award. Other Reports Issued In addition to the Comprehensive Annual Financial Report (Attachment A), three additional reports were issued: Audit Communication Letter (Attachment B), the Page 2 Report on Internal Control (Attachment C) and the Appropriations (GANN) Limit Agreed -Upon Procedures Report (Attachment D). The purpose of the Audit Communication Letter (Attachment B) is to provide a mechanism for communication with the governing body highlighting any significant issues that may arise during the audit process. As indicated, the City's financial statements were clearly presented. The purpose of the Report on Internal Control (Attachment C) is to help the auditor in designing audit procedures for the purpose of expressing an opinion on the financial statements. The report includes a finding and recommendation related to the City's financial system limitations. As indicated in the report, the City is in the process of implementing a new financial software system, which will resolve the issue noted. The purpose of the Appropriations (GANN) Limit Agreed -Upon Procedures Report (Attachment D) is to attest that the calculation was performed using the correct methodology and was correctly calculated based upon the information provided. 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 receive and file the following documents for fiscal year ending June 30, 2020: Page 3 A. Comprehensive Annual Financial Report B. Audit Communication Letter C. Report on Internal Control D. Appropriations (GANN) Limit Agreed -Upon Procedures Report SUBMITTED BY: Kelly Telford Kelly Telford, CPA, Finance Director/Treasurer ATTACHMENTS: NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager A. Comprehensive Annual Financial Report B. Audit Communication Letter C. Report on Internal Control D. Appropriations (GANN) Limit Agreed -Upon Procedures Report Page 4 Sed ge4e4dto California COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2020 City of Seal Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2020 4w 4V SEAL1*% dw AV dr INCORPORATED � Prepared by the Finance Department Kelly A. Telford Director of Finance/City Treasurer The City of Seal Beach provides excellent city services to enhance the quality of life and to preserve our small town character. U 9�y�i S f �\sz 41FORN�P The City of Seal Beach Values: Excellent Customer Service Mutual Respect Teamwork Professionalism Honest & Ethical Behavior City of Seal Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents Page INTRODUCTORY SECTION (UNAUDITED) Letterof Transmittal................................................................................................................................................... i Certificate of Achievement for Excellence in Financial Reporting — Government Finance Officers Association......................................................................................................... v OrganizationalChart ................................................................................................................................................. vi Principal Officials of the City of Seal Beach........................................................................................................... vii FINANCIAL SECTION Independent Auditors' Report on the Financial Statements...................................................................................... 1 Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................. 5 Basic Financial Statements: Government—Wide Financial Statements: Statementof Net Position.................................................................................................................................. 16 Statementof Activities...................................................................................................................................... 18 Fund Financial Statements: Governmental Fund Financial Statements: BalanceSheet.............................................................................................................................................. 25 Reconciliation of the Governmental Funds Balance Sheet to the Government—Wide Statement of Net Position........................................................................... 26 Statement of Revenues, Expenditures, andChanges in Fund Balances............................................................................................................. 27 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government—Wide Statementof Activities......................................................................................................................... 28 Proprietary Fund Financial Statements: Statementof Net Position........................................................................................................................... 30 Statement of Revenues, Expenses, and Changes in Net Position............................................................... 33 Statementof Cash Flows............................................................................................................................ 34 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position........................................................................................................... 39 Statement of Change in Fiduciary Net Position.......................................................................................... 40 Index to the Notes to the Basic Financial Statements......................................................................................... 43 Notes to the Basic Financial Statements.............................................................................................................. 45 City of Seal Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (Continued) FINANCIAL SECTION (Continued) Required Supplementary Information (Unaudited): Budgetary Comparison Schedule — General Fund.................................................................................... Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ................... Schedule of Contributions — Pension........................................................................................................ Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios .................... Schedule of Contributions — Other Postemployment Benefits .................................................................. Notes to the Budgetary Comparison Schedule.......................................................................................... Supplementary Information: Page ................. 87 Schedule of Revenues, Expenditures, and Change in Fund Balance — Budget and Actual Capital Projects and Equipment Capital Projects Fund..................................................................................... 99 Nonmajor Governmental Funds: CombiningBalance Sheet............................................................................................................................... 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 107 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Street Lighting Special Revenue Fund..................................................................................................... 112 Supplemental Law Enforcement Special Revenue Fund.......................................................................... 113 Detention Center Special Revenue Fund.................................................................................................. 114 Police Asset Forfeiture Special Revenue Fund......................................................................................... 115 Air Quality Improvement Special Revenue Fund..................................................................................... 116 Traffic Impact AB 1600 Special Revenue Fund....................................................................................... 117 State Gasoline Tax Special Revenue Fund............................................................................................... 118 Measure M2 Special Revenue Fund......................................................................................................... 119 Community Development Block Grant Special Revenue Fund............................................................... 120 Police Grants Special Revenue Fund........................................................................................................ 121 Landscape District Special Revenue Fund............................................................................................... 122 Heron Pointe Special Revenue Fund........................................................................................................ 123 Pacific Gateway Special Revenue Fund................................................................................................... 124 Seal Beach Cable Special Revenue Fund................................................................................................ 125 SBIProgram Special Revenue Fund........................................................................................................ 126 Citywide Grants Special Revenue Fund................................................................................................... 127 CityDebt Service Fund............................................................................................................................. 128 Agency Funds Financial Statements: Combining Statement of Assets and Liabilities.............................................................................................. 131 Combining Statement of Changes in Assets and Liabilities........................................................................... 132 City of Seal Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (Continued) Page STATISTICAL SECTION (Unaudited) NetPosition by Component......................................................................................................................................... 138 Changesin Net Position............................................................................................................................................... 140 Fund Balances of Governmental Funds....................................................................................................................... 144 Changes in Fund Balances of Governmental Funds..................................................................................................... 146 Assessed Value and Estimated Actual Value of Taxable Property .............................................................................. 148 Direct and Overlapping Property Tax Rates................................................................................................................ 149 PrincipalProperty Taxpayers....................................................................................................................................... 150 Property Tax Levies and Collections........................................................................................................................... 151 Ratiosof Outstanding Debt by Type............................................................................................................................ 152 Ratios of General Bonded Debt Outstanding............................................................................................................... 154 Schedule of Direct and Overlapping Debt.................................................................................................................... 155 LegalDebt Margin Information................................................................................................................................... 156 Pledged -Revenue Coverage......................................................................................................................................... 158 Demographicand Economic Statistics......................................................................................................................... 159 Top25 Sales Tax Producers......................................................................................................................................... 160 Full -Time and Part -Time City Employees by Function............................................................................................... 161 Operating Indicators by Function................................................................................................................................. 162 Capital Asset Statistics by Function............................................................................................................................. 164 This page intentionally left blank. February 26, 2021 Honorable Mayor, Members of the City Council and Citizens of the City of Seal Beach: City of Seal Beach staff is pleased to submit for your information the Comprehensive Annual Financial Report (CAFR) of the City of Seal Beach (City) for the fiscal year ended June 30, 2020. Responsibility for both the accuracy of presented data and the completeness and fairness of the presentation including all disclosures rests with the City. In our opinion, the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City, and contains all disclosures necessary to enable the reader to gain an understanding of the City's financial affairs. The financial statements are prepared in accordance with Generally Accepted Accounting Principals (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these presentations, management of the City has established a comprehensive internal control framework that is designed to protect the City's assets from loss, theft, or misuse, and to compile reliable information for the preparation of this report in conformity with GAAP. As Management, we assert to the best of our knowledge and belief, this financial report is complete and reliable in all material respects within the reasonable assurance of the internal control framework. The City's financial statements have been audited by The Pun Group, a public accounting firm fully licensed and qualified to perform audits of the state and local governments within the State of California. The audit was designed to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Seal Beach's financial statements for the year ended June 30, 2020, are fairly presented in conformity with Generally Accepted Accounting Principles. The independent auditor's report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statement in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with that section. The City's MD&A can be found immediately following the report of the independent auditors in the financial section of the CAFR. PROFILE OF THE CITY The City of Seal Beach, located on the coast of northwestern Orange County California, was incorporated on October 27, 1915. The City charter, which was adopted in 1964, established the form of government, states the powers and duties of the City Council, and establishes various City Offices. The City is operated under the City Council/City Manager form of government, and is governed by a five -member city council elected by district serving four-year alternating terms and who, in turn elect the Mayor and Mayor Pro Tem from among themselves for a one year term. The governing council is responsible for policy-making, passing local ordinances, adopting the budget, appointing committees, and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing of all department heads. The City provides a full range of services for the citizens utilizing a mix of contracts with other governmental entities or private companies. The City has its own Police Department and Marine Safety Department but contracts for fire and paramedic services through the Orange County Fire Authority (OCFA). The City also operates water and sewer utilities and contracts for refuse and sanitation treatment services. Included in the financial statements are the following blended component units: Seal Beach Public Financing Authority, Seal Beach Parking Authority and Seal Beach Cable Communications Foundation. The City is the home of Boeing Company Integrated Defense System international headquarters, the U.S. Naval Weapons Station, the first Leisure World Retirement Community and the 1,000 acre Seal Beach National Wildlife Refuge. The City's one and a half miles of beaches and the public pier attracts more than 2,000,000 visitors each year making recreation an important factor in the local economy. Seal Beach has a variety of local beach front stores at Main Street which include several fine dining establishments. Throughout the year many exciting community events take place in which the residents, and visitors, enjoy and participate. History of Seal Beach The City has an area of 13.23 square miles and sits on the coast as the gateway to Orange County between the cities of Long Beach and Huntington Beach. In 1901 J.C. Ord, a Civil War veteran known as "the father of Seal Beach," hired a 30—mule team to bring his small general store building from Los Alamitos to Bay City where he set it down at the southwest corner of crossroads now known as Main Street. J.C. Ord was the first Trustee, the first Mayor, Postmaster, and the first Judge. His store on Main Street was the Post Office and Court House and the jail house when it was necessary. The population in 1915 was 250 persons, including children. Bay City was renamed Seal Beach in 1916. California Sea Lions, commonly called Seals, were a regular part of the scene along the coast and a perfect name for the new town. On January 16, 1916, it was reported in the newspaper, the POST, that Frank Burt, who had managed the concessions at the recent Panama Pacific Exposition just closing in San Francisco, was coming to Seal Beach. His purpose was to establish an amusement zone for fun and frolic in this small beach village. The Jewel City Amusement Company was formed and a new 1,865 foot long pier was constructed in early summer 1916, and is the one of the longest wooden piers in California. The City became a popular recreation destination in the area, and featured a beach side amusement park before Disneyland was founded. During World War II, the U.S. Navy purchased 5,256 acres of land and established the Naval Ammunition and Net Depot for storage and loading of ammunition for the Pacific Fleet. The Seal Beach National Wildlife Refuge was established in 1972. In 1961, Leisure World was built on 541 acres of the Hellman Ranch property and was annexed in 1964. The Rossmoor Business Center was remodeled and now called the Shops at Rossmoor and was annexed by the City in 1962. In 1964-65, the College Park East and West construction took place. In 1969, Surfside Colony was annexed into Seal Beach and the City population grew to 24,441 by 1970. ECONOMIC CONDITIONS Local economy. Although the focus of this Comprehensive Annual Financial Report is the financial condition of the City at June 30, 2019, it may be best understood when it is considered from the broader perspective of the specific environment within which the City operates. Leading up to Fiscal Year 2019-20, the country had experienced the longest period of expansion in history. The outlook at the beginning of the year was positive expecting continued growth, however in March 2020, Governor Newsom issued a stay-at-home order in response to a rapid increase in COVID-19 transmission. This order not only shifted the City's way of doing business, but it caused an immediate halt to many of the City's revenue streams, negatively impacting the Seal Beach economy. In response, the City sought to evaluate how we provide central services to the Seal Beach community and identified ways to reduce operating and capital expenditures to help prevent operating deficits. M These challenges have continued into Fiscal Year 2020-21 and are expected to impact our residents, businesses and the City of Seal Beach until the vaccine can be widely distributed throughout the County of Orange. The financial impacts of the COVID-19 pandemic have been significant to most communities in the nation and the City of Seal Beach is no exception. The most significant impact to the City is the decline in revenues, most notably sales tax and transient occupancy tax, coupled with a shift in priorities from strategic objectives developed by the City Council in March 2020 to emergency preparedness and the protection of the community and City employees from the spread of COVID-19. This continues to remain a high priority today. The City is well-established with a community that is committed to supporting local businesses. This, coupled with support from local tourism, means the City is less vulnerable to the economic declines and will likely aid in a more speedy economic recovery than other cities may experience. Long-term financial planning. The City of Seal Beach has implemented cost saving measures to mitigate operating deficits in response to revenue declines related to the COVID-19 pandemic while continuing to provide the core services for our residents, businesses, visitors, and protect all essential municipal services that contribute to the high quality of life within the City. Fiscal Year 2019-20 marked the first complete year the City has received the 1% Transaction and Use Tax (TUT) approved by the voters in 2018. The measure titled Measure BB was a general tax measure that was anticipated to generate approximately $5 million in new revenue which was approved to mitigate structural deficits that were identified as a result of relatively flat revenues. Even with the impact of COVID-19, the City generated $4.9 million in TUT. The City has identified a critical need to invest in updated technology and thus, a major investment will be needed over the next five years. As a result the City will be conducting an Information Technology Master Plan to help evaluate and prioritize projects. In addition, a structural deficit has been identified in the City's Water Fund due to the rising cost of purchased water and other operating costs. The increase in operating costs has prevented the City from investing in much needed infrastructure improvements. A water and sewer rate study concluded that water rates should be increased and would be offset by a reduction in sewer rates. The study also identified the need for debt issuance to help pay for infrastructure improvements over the next five years. The City has been engaging in the Proposition 218 process and expects this to conclude during Fiscal Year 2020-21. For the upcoming fiscal year, property taxes are expected to show steady growth in future years, which is the result of continued improvement in real estate values. The Southern California region continues to show signs of uncertainty due to the impacts of the COVID-19 pandemic but many economists tie the recovery to the availability of a vaccine, which is currently being distributed. The County of Orange has a goal of vaccinating all vaccines residents and workers by mid -Summer and if this goal is met, the county and the City of Seal Beach will likely be showing improvements by the start of Fiscal Year 2021- 22. Major initiatives. The Strategic Plan goals are approved and/or affirmed by the City Council twice a year. The Strategic Plan goals and objectives are updated monthly at a City Council meeting. Many of these goals were re - prioritized when the pandemic hit, however they remain priorities and include: Fiscal Sustainability, Organizational Culture and Community Outreach and Capital Projects. FINANCIAL POLICIES AND PROCEDURES Internal control structure. Management of the City is responsible for establishing and maintaining an adequate internal control structure. Internal accounting controls are designed to ensure that the assets of the City are protected from loss, theft, or misuse, and that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance, that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of the control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by management. Budgetary controls. The annual budget serves as the foundation for the City of Seal Beach's financial planning and control. The City Council adopts an annual budget and appropriates the funds necessary to provide the services and operations for the fiscal year. The City Manager may make appropriation transfers within and between departments which do not result in an increase in appropriations. The City of Seal Beach City Council must approve all appropriation changes that results in an increase in appropriations. AWARDS GFOA Award Program — Comprehensive Annual Financial Report The Government Finance Officers Association of the United States (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Seal Beach for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2019. This was the nineteenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. City staff believes that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA again this year for award. ACKNOWLEDGEMENTS This report was made possible by the highly dedicated Finance staff with their special efforts and the teamwork, special thanks to the staff in the Finance Department. Sincere appreciation is also expressed to the City Council and City Manager for their interest and support, which made this presentation possible; and finally to the City's auditing firm of The Pun Group for their professional assistance. Respectfully submitted, W Kelly APelford, CPA Director of Finance/City Treasurer iv Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Seal Beach California For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019 Executive Director/CEO City of Seal Beach Organizational Chart CITY ATTORNEY Represents City in all legal matters FINANCE Financial Services/Reporting Business Tax Utility Billing/Cashiering Budget/Audit/Grants Accounts Payable/Payroll Debt Administration Treasury/Investments Successor Aaencv Administration COMMUNITY DEVELOPMENT Planning Building/Code Enforcement Development Review Community Development Block Grant Land Use and Coastal Issues General Plan and Code I MARINE SAFETY I Beach/Pool Safety Jr. Lifeguard Proaram Orange County Fire Authority CITIZENS OF SEAL BEACH MAYOR AND CITY COUNCIL CITY CLERK Records Management Election Management V1 CITY MANAGER Exercise Administrative Control Over All Departments Agenda Preparation Administrative Policies City Council Support Computer Network Administration Intergovernmental Relations Special Studies/Projects Policy Analysis Risk Management HUMAN RESOURCES Personnel Recruitment Employee Benefits Classification/Compensation Engineering Fleet Maintenance Beach Maintenance Water/Sewer Maintenance Capital Projects Storm Drains Building Maintenance Street Maintenance Traffic and Transoortation Youth/Adult Class Activity Special Event Permitting (Traffic/Patrol/Detective Services Parking Control Detention Center CITY OF SEAL BEACH CALIFORNIA Principal Officers City Council Schelly Sustarsic, Mayor Joe Kalmick, Mayor Pro Tem Thomas Moore, Council Member Sandra Massa-Lavitt, Council Member Mike Varipapa, Council Member Executive Officers Jill R. Ingram, City Manager Craig A. Steele, City Attorney Administrative Personnel Patrick Gallegos, Assistant City Manager Phil Gonshak, Chief of Police Steve Myrter, Director of Public Works Kelly A. Telford, Director of Finance/City Treasurer Les Johnson, Director of Community Development Joe Bailey, Marine Safety Chief Gloria D. Harper, City Clerk Vii This page intentionally left blank. THE PUN GROUP ACCOUNTANTS & ADVISORS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council of the City of Seal Beach Seal Beach, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Seal Beach, California (the "City"), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850 www.pungroup.com To the Honorable Mayor and Members of the City Council of the City of Seal Beach Seal Beach, California Page 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Budgetary Comparison Schedule — General Fund, the Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of Contributions — Pensions, the Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions — Other Postemployment Benefits on pages 5 to 12 and 87 to 95, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The Introductory Section, the Combining and Individual Nonmajor Fund Financial Statements, the Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual, and the Statistical Section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory and the Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. To the Honorable Mayor and Members of the City Council of the City of Seal Beach Seal Beach, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 26, 2021, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Santa Ana, California February 26, 2021 This page intentionally left blank. City of Seal Beach Management's Discussion and Analysis (Unaudited) For the Year Ended June 30, 2020 Management of the City of Seal Beach is pleased to offer this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City's financial statements. FINANCIAL HIGHLIGHTS Assets and deferred outflows of resources included in the City's combined governmental and business -type activities exceeded liabilities and deferred inflows of resources by $125.8 million for the fiscal year ended June 30, 2020, representing a decrease of 2.2% in net position from the prior fiscal year. Of this amount, a decrease of $5.8 million was due to the decrease in capital assets during the fiscal year. In addition, $2.2 million (unrestricted net position) of the total net position may be used to meet the government's ongoing obligations to citizens and creditors in accordance with the City's budget and fiscal policies. This amount includes City Council designations of fund balance. The City's change in net position was $13.1 million less than last fiscal year. The major reason for the decrease in the change in net position is attributable to the one-time $9.8 million of donated capital assets in 2019. In addition, there's a decrease in revenues for transient occupancy tax of $.3 million and other revenues of $.6 million, public safety expenses increased by $2.5 million public works expenses increased by $3.0 million, and community services expenses decreased by $0.1 million for the fiscal year ended June 30, 2020. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $31.9 million, representing an increase of 20.4% from the prior fiscal year. This resulted in an unassigned fund balance of $2.8 million or 8.9% of the total fund balance, after recording all assigned fund balances. • At the end of the current fiscal year, unassigned fund balance in the General Fund was $3.5 million or 10% of total general fund expenditures and transfers out. • Revenues associated with the City's business -type activities were $1.2 million less than the $8.5 million in expenses recorded. During the fiscal year ended June 30, 2010, a water rate study was conducted and as a result of that study, water rates were reduced in fiscal year 2009-2010 but increased in fiscal year 2010-2011 and for the next three years. The final approved water rate increase occurred in the fiscal year ended June 30, 2014. A new water and sewer rate study is currently underway. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements — The government -wide financial statements are designed to provide readers with a view of the City's finances as a whole in a manner similar to a private -sector business. The Statement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. City of Seal Beach Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2020 The Statement of Activities presents information showing how the City's net position changed during the fiscal year. All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods. Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government and administration, public safety, development services, public works, and recreation. The business -type activities of the City include water and sewer operations. Fund Financial Statements — The fund financial statements provide detailed information about the most significant funds and other funds — not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management established many other funds to help control and manage money for particular purposes or to verify that all legal requirements for using certain taxes, grants, and other resources are being satisfied. The City's three types of funds are governmental, proprietary, and fiduciary funds. Governmental funds — Most of the City's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short- term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. The differences of results in the Governmental Fund financial statements to those in the Government -wide financial statements are explained in a reconciliation following each of the Governmental Fund financial statements. Proprietary funds — Customer charges for various City services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City's enterprise funds are comprised of the business -type activities reported in the government -wide statements but provide more detail and additional information such as a statement of cash flows. Fiduciary funds — The City utilizes Fiduciary funds to account for assets held by the City in a trustee capacity, or as an agent for other governmental entities, private organizations, or individuals. All of the City's fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the City's Government -wide Financial Statements because the City cannot use these assets to finance its operations. Notes to the Financial Statements — The financial statements also include the Notes to the Financial Statements that provide important narrative details about the information contained in the financial statements. Information contained in the Notes to the Financial Statements is critical to a reader's full understanding of the Government -wide and Fund Financial Statements. Supplementary Information — In addition to the required elements of the Basic Financial Statements, a Supplementary Information section is included which contains budgetary and combining schedules that provide additional details about the City's non -major Governmental Funds and Fiduciary Funds. City of Seal Beach Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2020 GOVERNMENT -WIDE FINANCIAL ANALYSIS Our analysis focuses on the City's net position and changes in net position resulting from the City's activities. Net Position - Net position may serve over time as a useful indicator of a government's financial position. The City's combined net position were $125.8 million and $128.6 million for the years ended June 30, 2020 and June 30, 2019, respectively, as shown in Table 1. Table 1 Net Position (in Thousands) Governmental Business -Type Total Activities Activities Activities 2019 2020 2019 2020 2019 2020 Current and other assets $ 31,864 $ 36,268 $ 19,201 $ 18,977 $ 51,065 $ 55,245 Capital assets 89,875 86,590 39,068 36,930 128,943 123,520 Total assets 121,739 122,858 58,269 55,907 180,008 178,765 Deferred Outflows of Resources Longterm liabilities outstanding Other liabilities Total liabilities Deferred Inflows of Resources Net position Net investment in capital asets Restricted Unrestricted Total net position 8,224 9,218 42,817 45,263 3,521 3,776 46,338 49,039 1,600 2,622 87,072 84,531 4,825 7,601 (9,873) (11,716) $ 82,024 $ 80,416 1,206 1,019 10,587 9,757 1,761 1,761 12,348 11,518 286 373 32,937 31,474 25 25 13,657 13,931 $ 46,619 $ 45,430 9,430 10,237 53,404 55,020 5,282 5,537 58,686 60,557 1,886 2,995 120,009 116,005 4,850 7,626 3,784 2,215 $ 128,643 $ 125,846 Investment in capital assets represents assets such as land, buildings, infrastructure, and equipment less any related outstanding debt used to acquire those assets. Investment in capital assets represents $116.0 million, or 92.2%, of the total $125.8 million net position, a decrease of 3.3% from the prior fiscal year. The City's capital assets do not represent a financial resource and consequently are not available for future spending. Unrestricted position represents the second largest portion of the City's net position. The City is required by Council Policy to maintain a minimum of 3 months of operating expenditures to maintain the City's credit worthiness and to meet cash flow requirements. As of June 30, 2020, unrestricted net position decreased by 41.5% to $2.2 million from $3.8 million in the prior fiscal year. Restricted net position represents resources that are legally restricted to specific uses. These restrictions are generally enforced by external agencies. As of June 30, 2020, the City reported positive balances in all three categories of net position for both Governmental and Business -type Activities. With the exception of contracting the City's fire services with the Orange County Fire Authority, the City is a full service city providing residents and visitors with the following functional services: General Government is comprised of the City Council, City Clerk, City Manager, Human Resources, and Finance. These departments provide general governance, executive management, records management, risk management, finance, cash management, accounting, and information technology services. An outside firm appointed by the City Council provides legal services. City of Seal Beach Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2020 Public Safety is comprised of the Police, Fire, West Cities Police Communications and Marine Safety departments. The Police and Marine Safety departments provide general law enforcement, oversee animal control services, ocean lifeguard services, aquatic services, and parking control. Public Works provides engineering, construction and maintenance of public streets, highways, buildings, beaches, parks, and related infrastructure, as well as traffic engineering and street lighting. Development Services is comprised of the Planning and Building and Neighborhood services departments that provide planning and zoning services, economic development services, and building permits and plan check, and code enforcement services. Community Services provides leisure classes, monitors use of community facilities, and sports programs. Business Enterprise Operations include water and sewer operations and are administered by Public Works. The following table provides a summary of the City's operations for the years ended June 30, 2020 and 2019: Table 2 Changes in Net Position (in Thousands) 8 Governmental Business -Type Total Activities Activities Activities 2019 2020 2019 2020 2019 2020 Revenues: Program Revenues: Charges for services $ 7,815 $ 7,019 $ 7,705 $ 7,276 $ 15,520 $ 14,295 Operating grants and capital contrbutions 2,588 3,457 - - 2,588 3,457 Capital grants and conributions 9,778 31 - 9,778 31 General Revenues: Taxes Property taxes 11,482 12,358 - 11,482 12,358 Sales taxes 5,546 9,108 - 5,546 9,108 Transient occupancy taxes 1,631 1,299 - 1,631 1,299 Other taxes 5,399 5,722 - - 5,399 5,722 Use of money and property 1,693 1,862 326 391 2,019 2,253 Other 2,066 1,463 - - 2,066 1,463 Total revenues 47,998 42,319 8,031 7,667 56,029 49,986 Expenses: General government 6,479 7,007 - - 6,479 7,007 Public safety 21,497 24,017 - 21,497 24,017 Community development 1,500 1,577 - 1,500 1,577 Community Services 946 867 - 946 867 Public works 7,752 10,748 - 7,752 10,748 Interest on long-term debt 143 88 - - 143 88 Water - - 4,909 5,445 4,909 5,445 Sewer - 2,523 3,035 2,523 3,035 Total expenses 38,317 44,304 7,432 8,480 45,749 52,784 Excess/(deficiency) before special item 9,681 (1,985) 599 (813) 10,280 (2,798) Transfers 379 376 (379) (376) - - Changes in net position 10,060 (1,609) 220 (1,189) 10,280 (2,798) Net position at beginning of year 71,964 82,024 46,399 46,619 118,363 128,643 Net position at end of year $ 82,024 $ 80,415 $ 46,619 $ 45,430 $ 128,643 $ 125,845 8 City of Seal Beach Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2020 Analysis of the City's Operations - The City's Net Position decreased by $2.8 million during Fiscal Year 2019- 2020 or 2.4%, over prior year results. Governmental Activities experienced a decrease of $1.6 million in net position as of June 30, 2020 compared to an increase of $10.1 million at June 30, 2019. The primary reason for the decrease in net position is attributable to a decrease in capital assets of $5.8 million and an increase in public works expense of $3.0 million, general government expense of $.4 million, and public safety expense of $2.5 million. The cost of all governmental activities during the current fiscal year was $44.3 million, $6.0 million higher than last year. As shown on the statement of activities, those who directly benefited from the programs paid $7.0 million of the cost, and $3.5 million was financed by contributions and grants received from other governmental organizations. The remainder of the costs of operations, $32.1 million was subsidized through general City taxes and other revenue sources. The largest operating cost was comprised of Public Safety, representing 54.2% of total governmental expenditures compared to 56.1% of total governmental expenditures in fiscal year 2018-2019. Business -type Activities' net position decreased by $1.2 million primarily due to the increase in expenditures. FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS Governmental funds - The objective of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of June 30, 2020, the City's governmental funds reported combined ending fund balances of $31.9 million. Approximately $2.8 million, or 8.9%, of this total amount constitutes unassigned fund balance. The remainder of the fund balance is assigned to indicate that it is not available for new spending because it has already been committed to pay for encumbrances, loans, prepaid expenses, or advances to other funds. The General Fund ended the fiscal year with a fund balance of $27.2 million, representing a net increase of $5.1 million in fund balance compared to the $3.7 million decrease experienced during the prior fiscal year. The primary reason for the increase in fund balance was due to an increase in sales tax, property tax, and other taxes. Proprietary funds - The City's proprietary funds financial statements provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position totaled $5.5 million and $8.4 million for the Water and Sewer funds, respectively. The Water fund decreased by $1.3 million in net position, mainly due to increase in capital projects expenditures. The increase of $0.1 million thousand in the Sewer fund net position resulted from revenue collection. Sewer operating fees represent 22% of customer water charges for both usage and capital costs. General Fund Budgetary Highlights - There was no amendment of the original and final amended budgeted revenues. The difference between the original and final amended budget in General Fund expenditures was an increase of $0.4 million. This difference is due to a variety of purchase order and CIP carryover from the prior fiscal year. General Government revenues including transfer in came in more than projected in the final budget by approximately $3.9 million. General Government expenditures were $3.9 million less than appropriations. This difference is due to transfers out and budgeted capital projects that were either not started or completed during the fiscal year. These appropriations were carried forward to the FY 2021-2022 fiscal year. City of Seal Beach Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2020 CAPITAL ASSETS The City's capital assets for its governmental and business -type activities as of June 30, 2020, amounts to $123.2 million compared to $128.9 million (net of accumulated depreciation) for FY 2018-2019. This investment in capital assets includes land, building, equipment, improvements, infrastructure, and construction in progress. Total capital assets for governmental activities for the current fiscal year decreased 4.0% and the City's investment in capital assets for business -type activities for the current fiscal year also decreased 5.5%. Table 3 Capital Assets At Year -End (Net of Depreciation, in Thousands) During FY 2019-20, major capital projects formally completed include: • Tennis Center Roof Repair, Project BG1901 - total cost $387,000 • Zero Tower Safety Improvement, Project BP1902 - total cost $98,000 • Parking Management Plan, Project ST1207 - total cost $85,000 • Old Town Parking & Signage Improvement, Project ST1508 - total cost $27,000 • Local Street Paving Program, Project ST1902 - total cost $538,000 • Annual Striping Program, Project ST2005 - total cost $36,000 • Annual Main Street Paver Repairs, Project ST2008 - total cost $30,000 • Advanced Water Metering Infrastructure Project, Project WT2001 - total cost $45,000 Additional information on the City's capital assets can be found in Note 5 in the Financial Section of this report. DEBT ADMINISTRATION As of June 30, 2020, the City had bonded debt, notes payable, compensated absences, claims payable, and capital leases totaling $9.5 million compared to $10.4 million at the end of FY 2018-2019. The City's governmental activities maintained $3.8 million in bonds, capital leases, compensated absences, and claims payable versus $4.2 million last year, representing a decrease of approximately $0.4 million from the previous fiscal year. This decrease reflects interest and principal payments made during FY 2019-2020. 10 Governmental Business -Type Activities Activities Total 2019 2020 2019 2020 2019 2020 Land and land easement $ 21,220 $ 21,220 $ $ $ 21,220 $ 21,220 Buildings and Improvements 9,811 9,423 9,811 9,423 Machinery and Equipment 1,759 1,583 581 571 2,340 2,154 Vehicles 1,961 1,996 432 353 2,393 2,349 Infrastructure 47,144 51,643 35,217 35,140 82,361 86,783 Contruction-in-progress 7,980 725 2,839 866 10,819 1,591 Totals $ 89,875 $ 86,590 $ 39,069 $ 36,930 $ 128,944 $ 123,520 During FY 2019-20, major capital projects formally completed include: • Tennis Center Roof Repair, Project BG1901 - total cost $387,000 • Zero Tower Safety Improvement, Project BP1902 - total cost $98,000 • Parking Management Plan, Project ST1207 - total cost $85,000 • Old Town Parking & Signage Improvement, Project ST1508 - total cost $27,000 • Local Street Paving Program, Project ST1902 - total cost $538,000 • Annual Striping Program, Project ST2005 - total cost $36,000 • Annual Main Street Paver Repairs, Project ST2008 - total cost $30,000 • Advanced Water Metering Infrastructure Project, Project WT2001 - total cost $45,000 Additional information on the City's capital assets can be found in Note 5 in the Financial Section of this report. DEBT ADMINISTRATION As of June 30, 2020, the City had bonded debt, notes payable, compensated absences, claims payable, and capital leases totaling $9.5 million compared to $10.4 million at the end of FY 2018-2019. The City's governmental activities maintained $3.8 million in bonds, capital leases, compensated absences, and claims payable versus $4.2 million last year, representing a decrease of approximately $0.4 million from the previous fiscal year. This decrease reflects interest and principal payments made during FY 2019-2020. 10 City of Seal Beach Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2020 The City's business -type activities debt decreased $.5 million from $6.2 million to $5.7 million. Debt in the business -type activities consists of Sewer Certificates of Participation Payable to provide funds for improvements to the City's sewer system, a State revolving loan for the sewer capital improvement project, and compensated absences. Compensated absences Capital leases Pension Obligation Bonds Lease Revenue Bonds Certificates of participations Sewer Capital Improv. Proj. Self-insured claims payable Total Table 4 Outstanding Debt, At Year -End (in Thousands) Govemmental Business -Type Activities Activities 2019 2020 2019 2020 $ 1,289 531 1,995 ATA $ 1,423 $ 139 $ 137 457 - - Total 2019 2020 $ 1,428 $ 1,560 531 457 1,575 - - 1,995 1,575 - 2,110 1,940 2,110 1,940 - 3,947 3,625 3,947 3,625 zm - - an zm $ 4,238 $ 3,756 $ 6,196 $ 5,702 $ 10,434 $ 9,458 Additional information on the City's long-term debt can be found in note 6 in the Financial Section of the report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS The City of Seal Beach economy and tax base continue to support the present package of core services for our residents, businesses, and visitors and protect all essential municipal services that contribute to the high quality of life within the City. In FY 2019-2020 the tax revenue increased overall revenue. The increase was modest, primarily due to sales tax. Overall revenues increased by approximately $4.8 million in the General Fund. The primary reason was the receipt of Transaction and Use Tax, property tax, and the receipt of some one-time revenue. For the upcoming fiscal year, revenues are expected to improve significantly. The passage of the Measure BB is anticipated to generate approximately $4.8 million in new transactions and use tax revenue. Property taxes are expected to increase as well primarily from continued improvement in assessed value and new home sales with the building of new subdivision of 30 homes. The COVID-19 pandemic hit in the middle of FY2019-20 resulting in our need to reprioritize goals, objectives, and priorities, and therefore the need for deeper expenditure reductions. While the Southern California region saw a huge increase in the housing market, all other economic sectors declined rapidly comparable to the last Great Recession. The economy and consumer spending is forecasted to improve but at a slower rate than usually seen. The City prepared an annual budget for FY 2019-2020. The one year budget represents a General Fund surplus of operating revenues over operating expenditures (excluding capital projects) in each fiscal year. Expenditures of the City were budgeted at the current level of service with capital improvement projects to be supported primarily by the City's General Fund reserves. The revenue projections for the FY 2019-2020 budget year were very conservative due to the unknown impacts from the Federal tax reform on the local economy. The City will continue to monitor revenue streams throughout the coming years and will adjust spending levels as deemed necessary. 11 City of Seal Beach Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2020 The most significant issues facing the City are the aged condition of the City's infrastructure. The City has completed and adopted numerous infrastructure planning documents (i.e., Water Master Plan, Sewer Master Plan, Master Plan of Drainage, Facilities Master Plan, and Pavement Management Plan). These plans identify well over $160 million in needed improvements throughout the City. The City annually adopts a 5 year Capital Improvement Program (CIP) that strategically plans construction of these needed improvements. The FY 2020-2021 CIP recommends approximately $49 million in improvements over the next 5 years. The 5 Year Capital Improvement Program identifies needs in the following areas: Beach and Pier ($2M), Buildings and Facilities ($11M), Parks ($1M) Sewer System ($6M), Storm Drain System ($1M), Streets and Transportation ($9M) and Water System ($19M). REQUEST FOR INFORMATION This financial report is designed to provide the City's citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact the City's Finance Department at 2118' Street, Seal Beach, CA 90740-6379 or call (562) 431-2527. 12 BASIC FINANCIAL STATEMENTS 13 This page intentionally left blank. 14 GOVERNMENT -WIDE FINANCIAL STATEMENTS 15 City of Seal Beach Statement of Net Position June 30, 2020 ASSETS Current Assets: Cash and investments Receivables: Accounts Taxes Interest Prepaid items Due from other governments Total Current Assets Noncurrent Assets: Restricted cash with fiscal agent Capital assets: Capital assets, not being depreciated Capital assets, being depreciated, net Total capital assets, net Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding Pension related items Other postemployment benefits related items Total Deferred Outflows of Resources See accompanying Notes to the Basic Financial Statements 16 Primary Government Governmental Business -Type Activities Activities Total $ 30,747,324 $ 17,840,559 $ 48,587,883 2,262,935 1,097,159 3,360,094 2,349,469 - 2,349,469 205,995 - 205,995 41,776 14,250 56,026 35,607,499 18,951,968 54,559,467 660,312 25,082 685,394 21,945,378 866,641 22,812,019 64,644,507 36,063,198 100,707,705 86,589,885 36,929,839 123,519,724 87,250,197 36,954,921 124,205,118 122,857,696 55,906,889 178,764,585 - 108,633 108,633 8,428,991 831,907 9,260,898 789,072 78,040 867,112 9,218,063 1,018,5 80 10,236,643 City of Seal Beach Statement of Net Position (Continued) June 30, 2020 LIABILITIES Current Liabilities: Accounts payable Accrued liabilities Accrued interest Unearned revenues Deposits payable Retention payable Long-term liabilities, due within one year Long-term liabilities: Long-term liabilities, due in more than one year Net pension liabilities Net other postemployment benefits liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Pension related items Other postemployment benefits related items Total Deferred Inflows of Resources NET POSITION Net investment in capital assets Restricted for: Community development projects Public safety Community services Public works Debt service Other Total restricted Unrestricted (deficit) Total Net Position See accompanying Notes to the Basic Financial Statements 17 Primary Government Governmental Business -Type 8,198,333 Activities Activities Total 1,896,106 1,138,112 3,034,218 654,152 97,248 751,400 14,438 58,650 73,088 562,803 - 562,803 621,171 71,914 693,085 27,287 - 27,287 746,920 512,414 1,259,334 3,009,074 5,189,259 8,198,333 36,048,717 3,515,209 39,563,926 5,458,412 539,843 5,998,255 49,039,080 11,122,649 60,161,729 2,178,916 329,242 2,508,158 442,499 43,764 486,263 2,621,415 373,006 2,994,421 84,530,565 31,473,936 116,004,501 774,165 - 774,165 275,832 - 275,832 429,854 - 429,854 3,283,865 - 3,283,865 647,266 25,082 672,348 2,190,469 - 2,190,469 7,601,451 25,082 7,626,533 (11,716,752) 13,930,796 2,214,044 $ 80,415,264 $ 45,429,814 $ 125,845,078 Functions/Programs Governmental Activities: General government Public safety Community development Community services Public works Interest and fiscal charges Total Governmental Activities Business -Type Activities: Water Utility Sewer Utility Total Business -Type Activities Total Primary Government City of Seal Beach Statement of Activities For the Year Ended June 30, 2020 Program Revenues Capital Grants Charges for Operating Grants and Expenses $ 7,007,436 $ 1,207,956 $ 153,851 $ - $ 1,361,807 24,017,239 2,124,798 761,920 - 2,886,718 1,576,854 231,087 651,370 - 882,457 866,786 700,877 - - 700,877 10,748,166 2,754,304 1,890,056 30,707 4,675,067 88,274 - - - - 44,304,754 7,019,022 3,457,197 30,707 10,506,926 5,444,831 4,268,610 - - 4,268,610 3,035,443 3,007,958 - 3,007,958 8,480,274 7,276,568 - - 7,276,568 $ 52,785,028 $ 14,295,590 $ 3,457,197 S 30,707 $ 17,783,494 See accompanying Notes to the Basic Financial Statements 18 City of Seal Beach Statement of Activities (Continued) For the Year Ended June 30, 2020 Functions/Programs Governmental Activities: General government Public safety Community development Community services Public works Interest and fiscal charges Total Governmental Activities Business -Type Activities: Water Utility Sewer Utility Total Business -Type Activities Total Primary Government General Revenues: Taxes: Property taxes, levied for general purpose Sales taxes Franchise taxes Utility users tax Transient occupancy taxes Othertaxes Motor vehicle in lieu- unrestricted Use of money and property Other Transfers Total General Revenues and Transfers Changes in Net Position Net Position: Beginning of Year End of Year See accompanying Notes to the Basic Financial Statements 19 Net (Expense) Revenue and Changes in Net Positions Governmental Business -Type Activities Activities Total $ (5,645,629) (21,130,521) (694,397) (165,909) (6,073,099) (88,274) (33,797,828) $ (5,645,629) (21,130,521) (694,397) (165,909) (6,073,099) (88,274) (33,797,828) - (1,176,221) (1,176,221) - (27,485) (27,485) - (1,203,706) (1,203,706) (33,797,828) (1,203,706) (35,001,534) 12,358,059 - 12,358,059 9,108,334 - 9,108,334 1,034,280 - 1,034,280 3,941,877 - 3,941,877 1,298,707 - 1,298,707 724,854 - 724,854 21,133 - 21,133 1,862,213 391,016 2,253,229 1,463,177 - 1,463,177 376,483 (376,483) - 32,189,117 14,533 32,203,650 (1,608,711) (1,189,173) (2,797,884) 82,023,975 46,618,987 128,642,962 $ 80,415,264 $ 45,429,814 $ 125,845,078 This page intentionally left blank. 20 FUND FINANCIAL STATEMENTS 21 This page intentionally left blank. 22 GOVERNMENTAL FUND FINANCIAL STATEMENTS 23 This page intentionally left blank. 24 ASSETS Cash and investments Receivables: Accounts Taxes Interest Prepaid items Due from other funds Restricted assets: Cash and investments with fiscal agents Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Retentions payable Total liabilities Deferred Inflows of Resources: Unavailable revenues Fund Balances: Nonspendable Restricted Committed Assigned Unassigned (deficit) Total fund balances Total liabilities and fund balances See accompanying Notes to the Basic Financial Statements City of Seal Beach Balance Sheet Governmental Funds June 30, 2020 Capital Projects and Equipment Nonmajor Capital Projects Governmental General Fund Funds Total $ 24,495,126 $ 556,991 $ 5,150,365 $ 30,202,482 2,005,205 - 257,730 2,262,935 2,260,605 - 88,864 2,349,469 205,456 - 539 205,995 41,776 - - 41,776 645,609 - - 645,609 13,046 - 647,266 660,312 $__29 666,823 $ 556,991 $ 6,144,764 $ 36,368,578 $ 1,162,854 $ 668,281 $ 23,540 $ 1,854,675 641,259 - 12,893 654,152 - 562,803 562,803 621,171 - 621,171 - - 645,609 645,609 - 27,287 - 27,287 2,425,284 695,568 1,244,845 4,365,697 62,148 22,054 84,202 41,776 - - 41,776 2,190,469 - 5,410,982 7,601,451 17,067,216 - - 17,067,216 4,370,059 - - 4,370,059 3,509,871 (138,577) (533,117) 2,838,177 27,179,391 (138,577) 4,877,865 31,918,679 $ 29,666,823 $ 556,991 $ 6,144,764 $ 36,368,578 25 City of Seal Beach Reconciliation of the Governmental Funds Balance Sheet to the Government -wide Statement of Net Position June 30, 2020 Total Fund Balances - Total Governmental Funds $ 31,918,679 Amounts reported for governmental activities in the Statement of Net Position were reported differently because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Nondepreciable $ 21,945,378 Depreciable, net of $1,016,399 reported in Internal Service Fund 63,628,108 85,573,486 Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position: Bonds payable Loans payable Claims and judgments Compensated absences $ (1,575,000) (457,033) (301,413) (1,422,548) (3,755,994) Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the governmental funds. Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements: Pension related deferred outflows of resources $ 8,428,991 Aggregate net pension liability (36,048,717) Pension related deferred inflows of resources (2,178,916) Net other postemployment benefits liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements: OPEB related deferred outflows of resources $ 789,072 Net OPEB liability (5,458,412) OPEB related deferred inflows of resources (442,499) Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the Government -Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned. Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government -Wide Statement of Net Position. Net Position of Governmental Activities See accompanying Notes to the Basic Financial Statements 26 (14,438) (29,798,642) (5,111,839) 84,202 1,519,810 $ 80,415,264 City of Seal Beach Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2020 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions Miscellaneous Total revenues Expenditures: Current: General government Public safety Community development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures 5,994,506 - Capital Projects 6,083,705 20,460,170 - 460,937 and Equipment Other 381,029 General Capital Projects Governmental 852,664 Fund Fund Funds Total $ 25,624,395 $ - $ 1,857,185 $ 27,481,580 844,274 - - 844,274 3,160,261 - 1,169,898 4,330,159 4,562,469 - 121,607 4,684,076 1,885,265 - 118,264 2,003,529 1,239,154 - - 1,239,154 20,942 - 40,000 60,942 2,987,410 7,612 - 2,995,022 40,324,170 7,612 3,306,954 43,638,736 5,994,506 - 89,199 6,083,705 20,460,170 - 460,937 20,921,107 1,027,670 - 381,029 1,408,699 852,664 - - 852,664 5,697,425 740,120 234,685 6,672,230 - 1,729,166 - 1,729,166 74,370 17,441 34,124,246 2,469,286 420,000 494,370 71,171 88,612 1,657,021 38,250,553 Revenues over (under) expenditures 6,199,924 (2,461,674) 1,649,933 5,388,183 Other Financing Sources (Uses): Transfers in 980,746 2,597,208 563,572 4,141,526 Transfers out (2,115,367) - (2,004,105) (4,119,472) Total other financing sources (uses): (1,134,621) 2,597,208 (1,440,533) 22,054 Net change in fund balances 5,065,303 135,534 209,400 5,410,237 Fund Balances: Beginning of Year 22,114,088 (274,111) 4,668,465 26,508,442 End of Year $ 27,179,391 $ (138,577) $ 4,877,865 $ 31,918,679 See accompanying Notes to the Basic Financial Statements 27 City of Seal Beach Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities For the Year Ended June 30, 2020 Net Change in Fund Balances - Total Governmental Funds Governmental activities in the Statement of Activities were reported differently because: Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds. Capital outlay, net of $330,899 reported in Internal Service Fund Depreciation, net of $207,817 reported in Internal Service Fund Net effect on disposal of capital assets, net of $36,576 reported in Internal Service Fund Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Interest expense on long-term debt is reported in the Statement of Activities, but do not require the use of current financial resources. Therefore, interest is reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year. Claims and judgment changes reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences were reported in the Government -Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds. Certain pension income (expenses) reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds, net of contribution made during the measurement period in the amount of $3,821,049. Certain other postemployment benefits income (expenses) reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds, net of contribution made during the measurement period in the amount of $789,072. Revenues reported as unavailable revenue in the governmental funds and recognized in the Statement of Activities. Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities. Change in Net Position of Governmental Activities See accompanying Notes to the Basic Financial Statements 28 $ 1,729,166 (3,222,461) (1,878,547) 5,410,237 (3,371,842) 494,370 338 121,934 (134,122) (2,749,798) (205,351) (1,325,880) 151,403 $ (1,608,711) PROPRIETARY FUND FINANCIAL STATEMENTS 29 City of Seal Beach Statement of Net Position Proprietary Funds June 30, 2020 (Continued) See accompanying Notes to the Basic Financial Statements 30 Governmental Business -Type Activities Activities Vehicle Replacement Enterprise Funds Internal Water Utility Sewer Utility Total Service Fund ASSETS Current Assets: Cash and investments $ 8,124,544 $ 9,716,015 $ 17,840,559 $ 544,842 Accounts receivable 680,644 416,515 1,097,159 - Prepaid items 7,125 7,125 14,250 - Total Current Assets 8,812,313 10,139,655 18,951,968 544,842 Noncurrent Assets: Restricted cash 25,082 - 25,082 - Capital assets, not being depreciated 671,946 194,695 866,641 - Capital assets, net of accumulated depreciation 15,826,354 20,236,844 36,063,198 1,016,399 Total capital assets 16,498,300 20,431,539 36,929,839 1,016,399 Total Noncurrent Assets 16,523,382 20,431,539 36,954,921 1,016,399 Total Assets 25,335,695 30,571,194 55,906,889 1,561,241 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding - 108,633 108,633 - Pension related items 472,223 359,684 831,907 - Other postemployment benefits related items 43,356 34,684 78,040 - Total Deferred Outflows of Resources 515,579 503,001 1,018,580 - (Continued) See accompanying Notes to the Basic Financial Statements 30 City of Seal Beach Statement of Net Position (Continued) Proprietary Funds June 30, 2020 See accompanying Notes to the Basic Financial Statements 31 Governmental Business -Type Activities Activities Vehicle Replacement Enterprise Funds Internal Water Utility Sewer Utility Total Service Fund LIABILITIES Current Liabilities: Accounts payable 1,071,684 66,428 1,138,112 41,431 Accrued liabilities 58,949 38,299 97,248 - Accrued interest 1,275 57,375 58,650 - Deposits payable 64,644 7,270 71,914 - Compensated absences, due within one year 34,335 19,365 53,700 - Long-term debt, due within one year 84,436 374,278 458,714 - Total Current Liabilities 1,315,323 563,015 1,878,338 41,431 Noncurrent Liabilities: Compensated absences, due in more than one year 42,113 41,324 83,437 - Long-term debt, due in more than one year 569,945 4,535,877 5,105,822 - Aggregate net pension liabilities 1,995,371 1,519,838 3,515,209 - Net other postemployment benefits liabilities 299,913 239,930 539,843 - Total Noncurrent Liabilities 2,907,342 6,336,969 9,244,311 - Total Liabilities 4,222,665 6,899,984 11,122,649 41,431 DEFERRED INFLOW OF RESOURCES Pension related items 186,890 142,352 329,242 - Other postemployment benefits related items 24,314 19,450 43,764 - Total Deferred Inflows of Resources 211,204 161,802 373,006 - NET POSITION Net investment in capital assets 15,843,919 15,630,017 31,473,936 1,016,399 Restricted 25,082 - 25,082 - Unrestricted 5,548,404 8,382,392 13,930,796 503,411 Total Net Position $ 21,417,405 $ 24,012,409 $ 45,429,814 $ 1,519,810 See accompanying Notes to the Basic Financial Statements 31 This page intentionally left blank. 32 City of Seal Beach Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2020 NONOPERATING INCOME (LOSS): Interest revenues 179,197 211,819 391,016 - Governmental (14,827) (177,725) Business -Type Activities Gain (loss) on sale of assets Activities (607,800) (796,678) 6,704 Total Nonoperating Income (Loss) (24,508) Vehicle (598,214) 6,704 (LOSS) BEFORE TRANSFERS (997,024) Replacement (812,690) (203,026) Enterprise Funds Internal Water Utility Sewer Utility Total Service OPERATING REVENUES: Sales and service charges $ 4,113,475 $ 2,857,078 $ 6,970,553 $ - Miscellaneous 155,135 150,880 306,015 - Total Operating Revenues 4,268,610 3,007,958 7,276,568 - OPERATING EXPENSES: Personnel expenses 1,332,283 924,707 2,256,990 - Operating expenses 3,376,703 228,550 3,605,253 1,913 Amortization and depreciation expenses 532,140 1,096,661 1,628,801 207,817 Total Operating Expenses 5,241,126 2,249,918 7,491,044 209,730 OPERATING INCOME (LOSS) (972,516) 758,040 (214,476) (209,730) NONOPERATING INCOME (LOSS): Interest revenues 179,197 211,819 391,016 - Interest expenses (14,827) (177,725) (192,552) - Gain (loss) on sale of assets (188,878) (607,800) (796,678) 6,704 Total Nonoperating Income (Loss) (24,508) (573,706) (598,214) 6,704 (LOSS) BEFORE TRANSFERS (997,024) 184,334 (812,690) (203,026) TRANSFERS: Transfers in - 2,017 2,017 354,429 Transfers out (324,500) (54,000) (378,500) - Total Transfers (324,500) (51,983) (376,483) 354,429 CHANGES IN NET POSITION (1,321,524) 132,351 (1,189,173) 151,403 NET POSITION: Beginning of the Year 22,738,929 23,880,058 46,618,987 1,368,407 End of the Year $ 21,417,405 $ 24,012,409 $ 45,429,814 $ 1,519,810 See accompanying Notes to the Basic Financial Statements 33 City of Seal Beach Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2020 See accompanying Notes to the Basic Financial Statements 34 (Continued) Governmental Business -Type Activities Activities Vehicle Enterprise Funds Replacement Water Utility Sewer Utility Total Internal Service CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers and users $ 4,561,758 $ 2,902,582 $ 7,464,340 $ - Cash paid to suppliers for goods and services (3,538,989) (327,506) (3,866,495) (66,547) Cash paid to employees for services (1,522,761) (1,014,226) (2,536,987) - Cash received from others 155,135 150,880 306,015 Net cash provided by (used in) operating activities (344,857) 1,711,730 1,366,873 (66,547) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash transfers in - 2,017 2,017 354,429 Cash transfers out (324,500) (54,000) (378,500) - Net cash provided by (used in) noncapital financing activities (324,500) (51,983) (376,483) 354,429 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (257,985) (171,070) (429,055) (330,899) Gain(loss) on disposal of assets - (40,000) (40,000) 43,280 Principal paid on capital debt (128,683) (364,229) (492,912) - Interest paid on debt (14,432) (181,514) (195,946) Net cash (used in) capital and related financing activities (401,100) (756,813) (1,157,913) (287,619) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 179,197 211,819 391,016 - Receipt from collection of advances - 231,429 231,429 Net cash provided by investing activities 179,197 443,248 622,445 - Net change in cash and cash equivalents (891,260) 1,346,182 454,922 263 CASH AND CASH EQUIVALENTS: Beginning of year 9,040,886 8,369,833 17,410,719 544,579 End of year $ 8,149,626 $ 9,716,015 $ 17,865,641 $ 544,842 RECONCILIATION OF CASH AND CASH EQUIVALENTS: Cash and investments $ 8,124,544 $ 9,716,015 $ 17,840,559 $ 544,842 Restricted cash 25,082 - 25,082 - Total cash and cash equivalents $ 8,149,626 $ 9,716,015 $ 17,865,641 $ 544,842 See accompanying Notes to the Basic Financial Statements 34 (Continued) City of Seal Beach Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended June 30, 2020 Reconciliation of Operating Income (Loss) to to Net Cash Provided by (Used in) Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Amortization and depreciation expenses Changes in assets and liabilities: (Increase)/decrease in accounts receivables (Increase)/decrease in prepaid items (Increase)/decrease in deferred outflows of resources related to pensions (Increase)/decrease in deferred outflows of resources related to OPEB Increase/(decrease) in accounts payable Increase/(decrease) in accrued liabilities Increase/(decrease) in deposits payable Increase/(decrease) in compensated absences Increase/(decrease) in net pension liabilities Increase/(decrease) in net OPEB liabilities Increase/(decrease) in deferred inflows of resources related to pensions Increase/(decrease) in deferred inflows of resources related to OPEB Net cash provided by (used in) operating activities See accompanying Notes to the Basic Financial Statements Business -Type Activities Enterprise Funds Water Utility Sewer Utility Total Governmental Activities Vehicle Replacement Internal Service $ (972,516) $ 758,040 (214,476) $ (209,730) 532,140 1,096,661 1,628,801 207,817 413,916 41,098 455,014 - (3,792) (4,125) (7,917) - (63,623) (52,241) (115,864) - 42,279 26,811 69,090 - (158,494) (94,831) (253,325) (64,634) 10,435 6,425 16,860 - 34,367 4,406 38,773 - (3,695) 2,339 (1,356) - 117,087 106,861 223,948 - (339,921) (219,536) (559,457) - 68,768 53,492 122,260 - (21,808) (13,670) (35,478) - $ (344,857) $ 1,711,730 $ 1,366,873 $ (66,547) 35 This page intentionally left blank. 36 FIDUCIARY FUND FINANCIAL STATEMENTS 37 This page intentionally left blank. 38 City of Seal Beach Statement of Fiduciary Net Position Fiduciary Funds June 30, 2020 ASSETS Cash and investments Receivables: Accounts Interest Restricted investments with fiscal agent Total Assets LIABILITIES Current liabilities: Accrued interest Accrued liabilities Deposit payable Due to bondholders Bonds payable, due within one year Total current liabilities Noncurrent liabilities: Bonds payable, due in more than one year Total noncurrent liabilities Total liabilities NET POSITION Held in trust for Successor Agency Net position held in trust for Successor Agency See accompanying Notes to the Basic Financial Statements 39 28,495 $ 28,495 Successor Agency Agency Private -purpose Funds Trust Fund $ 523,692 $ 16,279 37,845 - - 1 970,431 710,794 $ 1,531,968 727,074 $ - $ 12,106 - 1,473 261,695 - 1,270,273 - - 160,000 $ 1,531,968 173,579 525,000 525,000 698,579 28,495 $ 28,495 City of Seal Beach Statement of Change in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2020 ADDITIONS: Redevelopment property tax trust fund Investment income Total Additions DEDUCTIONS: Administrative expenses Interest expense Total Deductions Change in Net Position NET POSITION: Beginning of Year End of Year See accompanying Notes to the Basic Financial Statements. 40 Successor Agency Private -purpose Trust Fund $ 234,102 10,722 244,824 211,576 42,386 253,962 (9,138) 37,633 $ 28,495 NOTES TO THE BASIC FINANCIAL STATEMENTS 41 This page intentionally left blank. 42 City of Seal Beach Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2020 Page Note 1— Summary of Significant Accounting Policies.....................................................................................45 A. Financial Reporting Entity..............................................................................................................45 B. Basis of Accounting and Measurement Focus................................................................................ 46 C. Cash and Investments.....................................................................................................................48 D. Fair Value Measurement.................................................................................................................49 E. Property Taxes Receivable............................................................................................................. 49 F. Prepaid Items.................................................................................................................................. 49 G. Interfund Transactions.................................................................................................................... 49 H. Capital Assets................................................................................................................................. 50 I. Unearned and Unavailable Revenue............................................................................................... 50 J. Compensated Absences Payable..................................................................................................... 50 K. Claims Payable............................................................................................................................... 51 L. Pensions.......................................................................................................................................... 51 M. Other Postemployment Benefits..................................................................................................... 51 N. Deferred Outflows/Inflows of Resources....................................................................................... 52 O. Long -Term Liabilities..................................................................................................................... 52 P. Net Position.................................................................................................................................... 52 Q. Fund Balances................................................................................................................................. 52 R. Spending Policy.............................................................................................................................. 53 S. Use of Estimates............................................................................................................................. 53 T. Tax Abatement................................................................................................................................ 53 U. Implementation of New GASB Pronouncements........................................................................... 54 Note2 — Cash and Investments.......................................................................................................................... 54 A. Demand Deposits............................................................................................................................ 54 B. Investments Authorized by the California Government Code and the City's Investment Policy............................................................................................................ 55 C. Investments Authorized by Debt Agreements................................................................................ 55 D. Fair Value Measurement................................................................................................................. 56 E. Risk Disclosures............................................................................................................................. 57 F. Investment in Local Agency Investment Fund ("LAIF")............................................................... 58 Note3 — Interfund Transactions........................................................................................................................ 59 A. Due From/To Other Funds.............................................................................................................. 59 B. Transfers......................................................................................................................................... 59 Note 4 — Advance to Successor Agency.............................................................................................................. 60 Note5 — Capital Assets........................................................................................................................................ 60 Note6 — Long -Term Liabilities.......................................................................................................................... 62 A. Governmental Activities................................................................................................................. 62 B. Business -Type Activities................................................................................................................ 63 C. Fiduciary Activities........................................................................................................................ 66 43 City of Seal Beach Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Page Note7 — Non -City Obligations........................................................................................................................... 67 A. Heron Pointe Community Facilities District No 2002-01............................................................. 67 B. Pacific Gateway Business Center Community Facilities District No 2005-01 ............................. 67 Note 8 — Risk Management and Self Insurance Program............................................................................... 67 A. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement ..................................... 67 B. Self -Insurance Programs of the Authority..................................................................................... 67 C. Purchased Insurance...................................................................................................................... 68 D. Adequacy of Protection................................................................................................................. 69 E. Claims Activity.............................................................................................................................. 69 Note9 — Defined Benefit Pension Plans............................................................................................................ 70 A. General Information about the Pension Plan................................................................................. 71 B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension............................................................. 73 Note 10 — Other Postemployment Benefits ("OPEB") Plan............................................................................ 77 A. General Information about the OPEB Plan.................................................................................... 77 B. Net OPEB Liability........................................................................................................................ 78 C. Changes in the Net OPEB Liability............................................................................................... 79 D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB................................................................................................... 80 Note11— Classification of Fund Balances........................................................................................................ 81 Note 12 — Commitments and Contingencies..................................................................................................... 82 A. Commitments.................................................................................................................................82 B. Contingencies................................................................................................................................ 82 C. Grants.............................................................................................................................................82 D. Subsequent Event........................................................................................................................... 82 E. Coronavirus Disease— 19 (COVID-19)......................................................................................... 82 Note13 — Individual Fund Disclosure............................................................................................................... 83 A. Expenditures in Excess of Appropriation...................................................................................... 83 B. Deficit Net Positions and Fund Balances....................................................................................... 84 44 City of Seal Beach Notes to the Basic Financial Statements For the Year Ended June 30, 2020 Note 1— Summary of Significant Accounting Policies The basic financial statements of the City of Seal Beach, California, (the "City") have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") as applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City's significant policies: A. Financial Reporting Entity The City was incorporated on October 27, 1915, under the laws of the State of California and enjoys all the rights and privileges applicable to a charter city. It is governed by an elected five -member council. As required by U.S. GAAP these financial statements present the City (the primary government and its component units). The component units discussed below are included in the reporting entity because of their operational or financial relationships with the City. In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body's financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization's governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. Blended Component Units: Management determined that the following entities should be reported as blended component units based on the criteria above. Although the following entities are legally separate from the City, they have been "blended" as though they are part of the City because the component units' governing bodies are substantially the same as the City's and there is a financial benefit or burden relationship between the City and the component units; and management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though they do not provide services directly to it. The Seal Beach Public Financing Authority (the "Authority") was formed May 8, 2000, pursuant to Articles 1 through 4 of Chapter 5, Division 7, Title 1 of the California Government Code, to create a joint exercise of powers authority between the City and the former Seal Beach Redevelopment Agency. The City Council of the City is the governing board. Management of the primary government has operational responsibility for the blended component unit. The Authority was formed to undertake the financing of public capital improvements. On June 12, 2017, the City Council adopted Resolution No. 6741, to create the Parking Authority, and the Parking Authority became a new member to the Authority. On the same date, the Successor Agency Board of Directors adopted Resolution No. SA 17-3, approving the Successor Agency's withdrawal of its Authority membership. On June 28, 2017, the Oversight Board to the Successor Agency adopted Resolution No. OB 17-03, approving such withdrawal. Resolution No. OB17-03 became effective upon the State of California Department of Finance's approval, received by the Successor Agency on August 18, 2017. 45 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued) Blended Component Units (Continued): The Seal Beach Parking Authority ("the Parking Authority") was formed on June 12, 2017, pursuant to the Part 2 of Division 18 of the California Streets and Highway Code. The Parking Authority is governed by the Board of Director which is the City Council of the City of Seal Beach. The Seal Beach Cable Communications Foundation (the "Foundation") was organized under the laws of the State of California on August 27, 1984, to foster and promote civic advancement through activities related to cable communications, community promotion, and other public services deemed appropriate by the foundation. The Foundation is governed by a board of directors consisting of seven members, all appointed by the City Council of the City of Seal Beach. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government -Wide Financial Statements The government -wide financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are not included in these statements. Certain types of transactions are reported as program revenues for the City in three categories: ➢ Charges for services ➢ Operating grants and contributions ➢ Capital grants and contributions Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated. In the statement of activities, internal service fund transactions have been included in the governmental activities. The following interfund activities have been eliminated: ➢ Due from and to other funds, which are short-term loans within the primary government ➢ Transfers in and out, which are flows of assets between funds without the requirement for repayment 46 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, current liabilities, and deferred inflows of resources are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) which are recognized when due. The primary revenue sources that have been treated as susceptible to accrual by the City are property taxes, intergovernmental revenues and other taxes. Business license fees are recorded as received. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Reconciliations of the fund financial statements to the government -wide financial statements are provided to explain the differences. The City reports the following major Governmental Fund: General Fund — The General Fund is the City's principal operating fund. It accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government except those required to be accounted for in another fund. Capital Projects and Equipment Capital Projects Fund — To account for major capital projects with various revenues sources but exclude the Water and Sewer Capital Improvement Fund. These sources get transferred into the Capital Projects and Equipment Projects Fund. Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund. Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities (whether current or noncurrent), and deferred inflows of resources are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. 47 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) The City reports the following major Proprietary Funds: Water Utility Enterprise Fund — This fund accounts for the capital, operation and maintenance of the City's water distribution system. Sewer Utili . Enterprise Fund — This fund accounts for the financial transactions of the City's waste water collection system. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. The City has Vehicle Replacement Internal Service Fund that provides services directly to other City funds. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent agency funds and private purpose trust funds. Both agency funds and the private purpose trust funds are accounted for on the full accrual basis of accounting. The City reports the following fiduciary funds: Agency Funds — These funds account for resources held by the City in a trustee capacity as an agent for individuals, private organizations, other governments, and/or other funds. They account for the deposits and the bond and bond related expenditures for the Heron Pointe and Pacific Gateway community facility districts. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Private -purpose Trust Fund — This fund accounts for the assets and liabilities of the former redevelopment agency and its allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated. C. Cash and Investments The City's cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City's investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for statement of cash flows purposes. 48 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Summary of Significant Accounting Policies (Continued) D. Fair Value Measurement Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The three levels of the fair value measurement hierarchy are described below: ➢ Level 1 — Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. ➢ Level 2 — Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date. ➢ Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. E. Property Taxes Receivable Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities in the current period. Under California law, property taxes are assessed and collected by the counties at up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. The property tax calendar is as follows: Lien Date: January 1 Levy Date: July 1 Due Date: First Installment - November 1 Second Installment - February 1 Delinquent Date: First Installment - December 11 Second Installment - April 11 F. Prepaid Items Prepaid items are payments made to vendors for services that will benefit periods beyond the fiscal year ended using purchase method. G. Interfund Transactions Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due from/to other funds" (i.e., current portion of interfund loans). 49 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 — Summary of Significant Accounting Policies (Continued) H. Capital Assets Capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are recorded at historical cost or estimated historical if purchased or constructed. Donated capital assets are valued at the estimated acquisition value on the date donated. City policy has set the capitalization threshold for reporting capital assets with an initial, individual cost of more than $5,000 and an estimated useful life of one year or more. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include street network, street appurtenances, and storm drains. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method. The lives used for depreciation purposes are as follows: Assets Years Building and Improvements 20-99 Machinery and Equipment 5-50 Vehicles 4-10 Infrastructure 20-60 Z Unearned and Unavailable Revenue Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government -wide financial statements are grant revenues received in advance. In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available. J. Compensated Absences Payable City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on their length of employment. It is the policy of the City to pay all accumulated vacation pay and all or a portion of sick pay when an employee retires or terminates. The long-term amount is included as a liability in the governmental activities of the government -wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. All of the liability for compensated absences applicable to proprietary funds is reported in those funds. 50 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 — Summary of Significant Accounting Policies (Continued) K Claims Payable The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" ("IBNR") claims. There is no fixed payment schedule to pay these liabilities. L. Pensions For purposes of measuring the aggregate net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Valuation Date June 30, 2018 Measurement Date June 30, 2019 Measurement Period July 1, 2018 to June 30, 2019 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. M. Other Postemployment Benefits For purposes of measuring the net other postemployment benefits ("OPEB)" liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Valuation Date June 30, 2019 Measurement Date June 30, 2019 Measurement Period July 1, 2018 to June 30, 2019 Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. 51 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Summary of Significant Accounting Policies (Continued) N. Deferred Outflows/Inflows of Resources The financial statements report separate sections for deferred outflows of resources, and deferred inflows of resources, when applicable. Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time. Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time. O. Long -Term Liabilities Long-term debt and other long-term liabilities are reported as liabilities in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. P. Net Position In the government -wide financial statements and proprietary fund financial statements, net position is classified as follows: Net Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated depreciation, capital related debt and deferred charges, and retention payable. Restricted — This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted — This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. Q. Fund Balances In the governmental fund financial statements, fund balances are classified as follows: Nonspendable — Nonspendable fund balances include amounts that cannot be spent because they are not in a spendable form, such as unrestricted loans receivable or prepaid items, or because resources legally or contractually must remain intact. Restricted — Restricted fund balances are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws and regulations of other governments or enabling legislation. Committed — Committed fund balances are self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a resolution is required to commit resources or to rescind the commitment. 52 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Summary of Significant Accounting Policies (Continued) Q. Fund Balances (Continued) Assigned — Assigned fund balances are limitations imposed by management based on the intended use of the funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the Finance Director for that purpose. Unassigned — Unassigned fund balances represent the residual net resources in excess of the other classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. R. Spending Policy Government -Wide Financial Statements and the Pronrietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City's practice is to apply the restricted component of net position first, then use the unrestricted component of net position as needed. Governmental Fund Financial Statements When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City's practice is to apply restricted fund balances first, then use unrestricted fund balances as needed. When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance: ➢ Committed ➢ Assigned ➢ Unassigned S. Use of Estimates The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. T. Tax Abatement Tax abatement is a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. City policy has set the threshold for disclosing tax abatement agreements greater than $50,000. 53 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Summary of Significant Accounting Policies (Continued) U. Implementation of New GASB Pronouncements During fiscal year ended June 30, 2020, the City has implemented the following new GASB Pronouncement: GASB Statement No. 95 - In May 2020, GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this Statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018, and later. Application of this statement is effective immediately and did not have a material effect on City's financial statements for the fiscal year ending June 30, 2020. Note 2 — Cash and Investments The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. The City had the following cash and investments at June 30, 2020: The City's cash and investments at June 30, 2020 in more detail: Cash and Investments: Government -Wide Statement of $ 6,929 Demand deposits Statement of Fiduciary 38,128 Investments Net Position Net Position Total Cash and investments $ 48,587,883 $ 539,971 $ 49,127,854 Restricted cash and investment with fiscal agent 685,394 1,681,225 2,366,619 Total cash and investments $ 49,273,277 $ 2,221,196 $ 51,494,473 The City's cash and investments at June 30, 2020 in more detail: Cash and Investments: Petty cash $ 6,929 Demand deposits 1,741,719 Restricted cash 38,128 Investments 49,707,697 Total cash investments $ 51,494,473 A. Demand Deposits The carrying amounts of the City's demand deposits were $1,741,719 at June 30, 2020. Bank balances at that date were $2,175,348, the total amount of which was insured or collateralized with accounts held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. 54 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) A. Demand Deposits (Continued) The fair value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation ("FDIC"). The City, however, has not waived the collateralization requirements. B. Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized by the City's investment policy and the California Government Code. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Authorized Investment Type Maturity U.S. Treasury securities 5 years U.S. agency and U.S. government sponsored 10% enterprise securities 5 years Obligation of the State of California None or any local agency 5 years Registered treasury notes or bonds of any 10% of the 49 states in addition to California 5 years Bankers' acceptance 180 days Commercial paper 270 days Nonnegotiable certificate of deposit 5 years Negotiable certificate of deposit 5 years Medium term notes 5 years Money market mutual funds 89 days Local Agency Investment Fund (LAIF) None Maximum Maximum Portfolio* One Issuer* 100% None 20% None 100% None 100% None 40% 5% 25% 10% 100% None 30% None 30% 10% 10% 10% 100% 50 Million/account *The table is based on state law requirements or investment policy requirements, whichever is more restrictive. C. Investments Authorized by Debt Agreements 55 Maximum Maximum Maximum Percentage of Investment in Authorized Investment Type Maturity Portfolio* One Issuer* U.S. Treasury securities None None None U.S. agency and U.S. government sponsored enterprise securities None None None Bankers' acceptance 180 days None 30% Commercial paper 270 days None None Money market mutual funds 89 days None None Investment contracts 30 years None None Local Agency Investment Fund (LAIF) None None None 55 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) C. Investments Authorized by Debt Agreements (Continued) Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table on the following page identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, and concentration of credit risk. D. Fair Value Measurement At June 30, 2020, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within the fair value hierarchy in which the fair value measurements fall at June 30, 2020: Investment Type Investments: US Treasury bonds/notes US government sponsored enterprise securities Corporate note Negotiable certificates of deposit LAIF Investments with Fiscal Agent: Money Market Mutual Funds Total investments Value Fair Value Measurement Quoted Prices Significant in Active Other Markets for Observable Identical Assets Inputs (Level 1) (Level 2) Cash Equivalent $ 13,517,043 $ 13,517,043 $ - $ 7,516,449 7,516,449 - 4,397,980 4,397,980 - 3,597,242 3,597,242 - 18,350,492 - 18,350,492 2,328,491 - 2,328,491 $ 49,707,697 $ 13,517,043 $ 15,511,671 $ 20,678,983 Investments in municipal bonds/notes, U.S. government sponsored enterprise securities, and corporate note are valued based on institutional bond quotes. Investments in negotiable certificates of deposits are valued based on certificate of deposits pricing. 56 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) E. Risk Disclosures Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City's investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type. Minimum Investment Maturities (in Years) Investment Type Amount Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Investments: AAA AA- to AA+ A- to A+ BBB Unrated Investments: US Treasury bonds/notes $ 13,517,043 $ $ 4,158,996 $ 2,422,109 $ 3,074,237 $ 3,861,701 US government sponsored enterprise securities A 7,516,449 enterprise securities 7,516,449 Corporate note 1,282,246 2,014,580 1,715,760 2,503,863 Corporate note 4,397,980 1,096,130 1,118,871 1,283,890 394,541 504,548 Negotiable certificates of deposit 3,597,242 2,267,858 276,708 1,052,676 - - LAIF 18,350,492 18,350,492 - - - - Investments with Fiscal Agent: $ 49,707,697 $ 2,328,491 $ 22,318,307 $ 6,195,883 $ 514,524 $ 18,350,492 Money Market Mutual Funds 2,328,491 2,328,491 - - Total investments $ 49,707,697 $ 24,042,971 $ 6,836,821 $ 6,773,255 $ 5,184,538 $ 6,870,112 Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City's investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type. N/R - Not Required by the City's investment policy N/A - Not applicable 57 Minimum Legal Investment Type Rating Total AAA AA- to AA+ A- to A+ BBB Unrated Investments: US Treasury bonds/notes N/R $ 13,517,043 $ $ 13,517,043 $ $ $ US government sponsored enterprise securities A 7,516,449 7,516,449 Corporate note A 4,397,980 664,984 3,218,472 514,524 Negotiable certificates of deposit N/R 3,597,242 619,831 2,977,411 - - LAIF N/A 18,350,492 - - 18,350,492 Investments with Fiscal Agent: Money Market Mutual Funds N/R 2,328,491 2,328,491 Total investments $ 49,707,697 $ 2,328,491 $ 22,318,307 $ 6,195,883 $ 514,524 $ 18,350,492 N/R - Not Required by the City's investment policy N/A - Not applicable 57 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) E. Risk Disclosures (Continued) Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City's investment in Fannie Mae Agency Note in amount of $4,551,982 represented 9.6% of total City investments. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g., broker dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2020, the City deposits (bank balances were insured by the Federal Depository Insurance Corporation up to $250,000 and the remaining balances were collateralized under California law. For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. F. Investment in Local Agency Investment Fund ("LAIF") The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's investments with LAIF at June 30, 2020 included a portion of the pool funds invested in Structured Notes and Asset -Backed Securities, which included the following: Structured Notes - debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset -Backed Securities - generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, collateralized mortgage obligations), or credit card receivables. As of June 30, 2020, the City had $18,350,492 invested in LAIF, which had invested 3.37% of the pool investment funds in Structured Notes, Medium-term Asset -Backed Securities, and Short-term Asset Backed Commercial Paper. LAIF is reported at amortized costs, which approximates fair value. 58 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 3 — Interfund Transactions A. Due From/To Other Funds At June 30, 2020, the City had the following due from/to other funds: Due To Other Funds Due From Other Funds General Fund Nonmajor Governmental Funds $ 645,609 The above amounts resulted from deficits in the pooled cash account and CARES related Public Safety expenditures covered by the General Fund. Short-term loans were made to the Community Development Block Grant Special Revenue Fund and Police Grant Special Revenue Fund to address these deficits. B. Transfers During the year ended June 30, 2020, the City had the following transfers: In general, transfers are used to 1) use unrestricted revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and 2) to transfer to the General Fund to fund administration services. Transfers totaling $378,500 from the Water and Sewer Utility Enterprise Funds were made to the General Fund to provide funding for certain administrative costs. Transfers totaling $512,600 from the CARES Act Fund were made to the General Fund for public safety costs to be funded by the CARES Act, $14,646 from the Pension Obligation Debt Service Fund during the close out of the fund, and $64,000 from Nonmajor Governmental Funds (Gas Tax, CFD Loan, and Pacific Gateway) for non -capital expenditures. The General Fund and the Nonmajor Governmental Funds (City Debt Service Debt Service Fund) transferred $1,197,744 and $1,399,464 to the Capital Projects and Equipment Capital Projects Fund to pay for capital projects and equipment purchases. The General Fund transferred a total of $550,177 to the Nonmajor Governmental Funds (Street Lighting Special Revenue Fund and City Debt Service Debt Service Fund) for capital outlay and debt service -related costs. $13,395 was transferred between Nonmajor Governmental Funds for traffic related capital projects. The General Fund transferred $2,017 to the Sewer Projects Fund for capital project related costs and $354,429 to the Internal Service Fund for an annual vehicle replacement program. 59 Transfers in Capital Projects and Equipment Nonmajor Sewer Utility General Capital Projects Governmental Enterprise Internal Service Transfers out Fund Fund Funds Fund Funds Total General Fund $ - $ 1,208,744 $ 550,177 $ 2,017 $ 354,429 $ 2,115,367 Nonmajor Governmental Funds Funds 602,246 1,388,464 13,395 - - 2,004,105 Water Utility Enterprise Fund 324,500 - - 324,500 Sewer Utility Enterprise Fund 54,000 - - - - 54,000 Total $ 980,746 $ 2,597,208 $ 563,572 $ 2,017 $ 354,429 $ 4,497,972 In general, transfers are used to 1) use unrestricted revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and 2) to transfer to the General Fund to fund administration services. Transfers totaling $378,500 from the Water and Sewer Utility Enterprise Funds were made to the General Fund to provide funding for certain administrative costs. Transfers totaling $512,600 from the CARES Act Fund were made to the General Fund for public safety costs to be funded by the CARES Act, $14,646 from the Pension Obligation Debt Service Fund during the close out of the fund, and $64,000 from Nonmajor Governmental Funds (Gas Tax, CFD Loan, and Pacific Gateway) for non -capital expenditures. The General Fund and the Nonmajor Governmental Funds (City Debt Service Debt Service Fund) transferred $1,197,744 and $1,399,464 to the Capital Projects and Equipment Capital Projects Fund to pay for capital projects and equipment purchases. The General Fund transferred a total of $550,177 to the Nonmajor Governmental Funds (Street Lighting Special Revenue Fund and City Debt Service Debt Service Fund) for capital outlay and debt service -related costs. $13,395 was transferred between Nonmajor Governmental Funds for traffic related capital projects. The General Fund transferred $2,017 to the Sewer Projects Fund for capital project related costs and $354,429 to the Internal Service Fund for an annual vehicle replacement program. 59 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 4 — Advance to Successor Agency In 2012, the Sewer Fund advanced $1,200,000 to the former redevelopment agency, but was subsequently denied by the Department of Finance (DOF). The City appealed the DOF decision and, in 2014, this advance was approved. Interest on the advance is consistent with the Local Agency Investment Fund ("LAIF") interest rate at the time the Oversight Board made the finding that the advance was for legitimate redevelopment purposes, which was at 0.00367%. During the fiscal year ended June 30, 2020 the outstanding balance of $231,429 was repaid. Note 5 — Capital Assets The summary of changes in governmental activities capital assets for the year ended June 30, 2020 is as follows: Capital assets being depreciated: Buildings and improvements Machinery and equipment Vehicles Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings and improvements Machinery and equipment Vehicles Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Total governmental activities 16,656,018 Balance Reclassifications Balance 3,778,542 July 1, 2019 Additions Deletions and Transfers June 30, 2020 Capital assets not being depreciated 333,120 (276,185) - 3,677,215 Land $ 20,319,847 $ - $ $ $ 20,319,847 Intangible asset -land easement 900,000 - 900,000 Construction in progress 7,980,216 1,240,375 (1,518,580) (6,976,480) 725,531 Total capital assets not being depreciated 29,200,063 1,240,375 (1,518,580) (6,976,480) 21,945,378 Capital assets being depreciated: Buildings and improvements Machinery and equipment Vehicles Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings and improvements Machinery and equipment Vehicles Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Total governmental activities 16,656,018 392,663 (316,998) - 16,731,683 3,778,542 93,907 (83,353) - 3,789,096 3,620,280 333,120 (276,185) - 3,677,215 83,696,643 (392,663) 6,976,480 90,280,460 107,751,483 819,690 (1,069,199) 6,976,480 114,478,454 (6,844,702) (682,803) 219,313 - (7,308,192) (2,019,383) (202,968) 15,846 - (2,206,505) (1,659,680) (298,129) 276,185 - (1,681,624) (36,552,560) (2,246,378) 161,312 - (38,637,626) (47,076,325) (3,430,278) 672,656 - (49,833,947) 60,675,158 (2,610,588) (396,543) 6,976,480 64,644,507 $ 89,875,221 $ (1,370,213) $ (1,915,123) $ - $ 86,589,885 Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2020 as follows: General government $ 581,268 Public safety 342,920 Community development 12,746 Public works 2,285,527 Internal service funds 207,817 Total depreciation expense $ 3,430,278 60 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 5 — Capital Assets (Continued) The summary of changes in business -type activities capital assets for the year ended June 30, 2020 is as follows: Capital assets not being depreciated: Construction in progress -water Construction in progress -sewer Total capital assets not being depreciated Capital assets being depreciated: Buildings and improvements - water Machinery and equipment - water Machinery and equipment - sewer Vehicles - water Vehicles - sewer Infrastructure - water Infrastructure - sewer Total capital assets being depreciated Less accumulated depreciation for: Buildings and improvements - water Machinery and equipment - water Machinery and equipment - sewer Vehicles - water Vehicles - sewer Infrastructure - water Infrastructure - sewer Total accumulated depreciation Total capital assets being depreciated, net Total business -type activities Balance Balance July 1, 2019 Additions Deletions Reclassifications June 30, 2020 $ 1,949,875 $ 130,949 $ (188,878) $ (1,220,000) $ 671,946 888,680 128,815 (607,800) (215,000) 194,695 2,838,555 259,764 (796,678) (1,435,000) 866,641 73,284 - - 73,284 587,115 15,163 - 602,278 785,802 - - 785,802 273,061 - 273,061 610,229 - 610,229 33,045,102 1,220,000 34,265,102 38,407,844 - 215,000 38,622,844 73,782,437 15,163 1,435,000 75,232,600 (73,284) - - (73,284) (525,527) (10,989) - (536,516) (265,940) (14,928) - (280,868) (182,331) (21,222) - (203,553) (269,454) (57,513) - (326,967) (18,074,089) (499,929) - (18,574,018) (18,162,046) (1,012,150) - (19,174,196) (37,552,671) (1,616,731) - (39,169,402) 36,229,766 (1,601,568) 1,435,000 36,063,198 $ 39,068,321 $ (1,341,804) $ (796,678) $ - $ 36,929,839 Depreciation expense was charged to functions/programs of business -type activities for the year ended June 30, 2020 as follows: Water Utility $ 532,140 Sewer Utility 1,084,591 Total depreciation expense $ 1,616,731 61 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 — Long -Term Liabilities A. Governmental Activities Summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2020 is as follows: The General Fund has been used to liquidate the majority of the liability for compensated absences, other post - employment benefits liabilities and net pension liabilities in the current and prior years. 2009 Series Lease Revenue Bonds On January 14, 2009, the City issued 2009 Series Lease Revenue Bonds for the purpose of financing the construction of a new fire station in the City in the amount of $6,300,000 Interest rate on the bonds is 3.71%. The total balance of the 2009 Series Lease Revenue bonds at June 30, 2020 was $1,575,000. The 2009 Bonds are equally secured by a pledge, charge and lien on the revenues of the sublease. If an event of default under the sublease occurs then the trustee shall, within 30 days of such notice, give written notice by first class mail to the owner of each Series 2009 bond unless the default has been cured within the 30 day period. The trustee shall have no right to declare the principal of, or interest on, the Series 2009 bonds to be due and payable immediately. The annual debt service requirements are as follows: Year ending Classification Principal Balance Total Balance Due within Due in more $ 472,589 July 1, 2019 Additions Deletions June 30, 2020 One Year than One Year 2009 Lease Revenue Bonds - Private Placement $ 1,995,000 $ $ (420,000) $ 1,575,000 $ 420,000 $ 1,155,000 Municipal Finance Corporation - Direct Borrowing 531,403 (74,370) 457,033 76,920 380,113 Claims payable 423,347 (121,934) 301,413 42,148 259,265 Compensated absences 1,288,426 760,551 (626,429) 1,422,548 207,852 1,214,696 Total $ 4,238,176 $ 760,551 $ (1,242,733) $ 3,755,994 $ 746,920 $ 3,009,074 The General Fund has been used to liquidate the majority of the liability for compensated absences, other post - employment benefits liabilities and net pension liabilities in the current and prior years. 2009 Series Lease Revenue Bonds On January 14, 2009, the City issued 2009 Series Lease Revenue Bonds for the purpose of financing the construction of a new fire station in the City in the amount of $6,300,000 Interest rate on the bonds is 3.71%. The total balance of the 2009 Series Lease Revenue bonds at June 30, 2020 was $1,575,000. The 2009 Bonds are equally secured by a pledge, charge and lien on the revenues of the sublease. If an event of default under the sublease occurs then the trustee shall, within 30 days of such notice, give written notice by first class mail to the owner of each Series 2009 bond unless the default has been cured within the 30 day period. The trustee shall have no right to declare the principal of, or interest on, the Series 2009 bonds to be due and payable immediately. The annual debt service requirements are as follows: Year ending June 30, Principal Interest Total 2021 $ 420,000 $ 52,589 $ 472,589 2022 420,000 37,007 457,007 2023 420,000 21,425 441,425 2024 315,000 5,844 320,844 Total $ 1,575,000 $ 116,865 $ 1,691,865 62 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 - Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Municipal Finance Corporation Loan On May 8, 2014, the City entered into a Lease with Option to Purchase agreement with Municipal Finance Corporation relating to a capital project to be performed by Climatec LLC in the amount of $1,546,931. Interest rate on the loan is 3.40%. The balance of the Municipal Finance Corporation Loan at June 30, 2020 was $457,033. In the event of a termination or cancellation of the agreement by the City, due to no fault or failure of performance by Climatec LLC, Climatec LLC shall be paid based on the percentage of work that is satisfactory and of beneficial use. If on the scheduled date of termination of this Lease the rental payments have not been fully paid, then the terms shall be extended until the date upon which all such rental payments are made, except that the term of this Lease shall in no event extend beyond the date that corresponds to the end of the useful life of the property. In the event the City fails to pay any part of the rental payments within 30 days of the due date, the City shall upon the lessor's written request, pay interest on such delinquent rental payments from the date it was due until the date it is paid at the rate of 8% per annum or the maximum legal rate, whatever is less. In the event of a default the lessor does not have the right to accelerate the rental payments due in future periods or declare any rental payments not then in default to be immediately due and payable. The annual debt service requirements are as follows: Year ending Classification June 30, Principal Interest Total 2021 $ 76,920 $ 14,891 $ 91,811 2022 79,558 12,253 91,811 2023 82,286 9,525 91,811 2024 85,107 6,704 91,811 2025 88,025 3,786 91,811 2026 45,137 767 45,904 Total $ 457,033 $ 47,926 $ 504,959 B. Business -Type Activities Summary of changes in long-term liabilities for business -type activities for the year ended June 30, 2020 is as follows: 2011 Sewer Revenue Refunding Bonds - Private Placement Sewer Capital Improvement Project #1 - Direct Borrowing Sewer Capital Improvement Project #2 - Direct Borrowing West Orange County Water Board Loan - Direct Borrowing Compensated absences Total The Water Utility Fund and Sewer Utility Fund have been used to liquidate the liability for compensated absences and net pension liabilities. 63 Classification Balance Balance Due within Due in more July 1, 2019 Additions Deletions June 30, 2020 One Year than One Year $ 2,110,000 $ $ (170,000) $ 1,940,000 $ 175,000 $ 1,765,000 1,852,678 (121,611) 1,731,067 124,772 1,606,295 1,311,706 (72,618) 1,239,088 74,506 1,164,582 783,064 (128,683) 654,381 84,436 569,945 138,493 125,654 (127,010) 137,137 53,700 83,437 $ 6,195,941 $ 125,654 $ (619,922) $ 5,701,673 $ 512,414 $ 5,189,259 The Water Utility Fund and Sewer Utility Fund have been used to liquidate the liability for compensated absences and net pension liabilities. 63 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 - Long -Term Liabilities (Continued) B. Business -Type Activities (Continued) 2011 Sewer Svstem Revenue Refunding Bonds On March 2, 2011, the City issued 2011 Sewer System Revenue Refunding Bonds in the amount of $3,310,000 to pay off the 2000 Sewer System Certificates of Participation. The 2000 Sewer System Certificates of Participation were issued to provide for improvements to the City's sewer system. Interest rate on the 2011 Sewer System Revenue Refunding Bonds is 4.8%, and the balance of the 2011 Sewer System Revenue Refunding Bonds at June 30, 2020 was $1,940,000. In the event of a default the City may be required to pay all principal components of the unpaid installment payments, together with accrued interest at the overdue rate from the preceding interest payment date which will become immediately due and payable. The annual debt service requirements are as follows: Year ending June 30, Principal Interest Total 2021 $ 175,000 $ 91,080 $ 266,080 2022 185,000 82,560 267,560 2023 195,000 73,560 268,560 2024 205,000 64,080 269,080 2025 215,000 54,120 269,120 2026-2029 965,000 107,160 1,072,160 Total $ 1,940,000 $ 472,560 $ 2,412,560 Sewer Capital Improvement Project Loan #1 On April 6, 2011, the City entered into an agreement with the Clean Water State Revolving Fund Control Board for construction of the Sewer Capital Improvement project. The City may borrow up to $2,644,356 or the eligible costs of the project, whichever is less. As of June 30, 2020, the City had drawn down the entire loan fund. The loan has an interest rate of 2.6% with maturities through 2031. The outstanding balance at June 30, 2020 was $1,731,067. The annual debt service requirements are as follows: Year ending June 30, Principal Interest Total 2021 $ 124,772 $ 45,008 $ 169,780 2022 128,017 41,764 169,781 2023 131,345 38,435 169,780 2024 134,760 35,020 169,780 2025 138,264 31,516 169,780 2026 141,859 27,922 169,781 2027-2032 932,050 86,630 1,018,680 Total $ 1,731,067 $ 306,295 $ 2,037,362 64 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 - Long -Term Liabilities (Continued) B. Business -Type Activities (Continued) Sewer Capital Improvement Proiect Loan #2 On April 6, 2011, the City entered into an agreement with the Clean Water State Revolving Fund Control Board for construction of the Sewer Capital Improvement project. The City may borrow up to $2,125,112 or the eligible costs of the project, whichever is less. At June 30, 2020, the State Water Resources Control Board had disbursed $1,652,742. The loan has an interest rate of 2.6% with maturities through 2031. The outstanding balance at June 30, 2020 was $1,239,088. The annual debt service requirements are as follows: Year ending June 30, Principal Interest Total 2021 $ 74,506 $ 32,216 $ 106,722 2022 76,444 30,279 106,723 2023 78,431 28,292 106,723 2024 80,470 26,252 106,722 2025 82,563 24,160 106,723 2026-2030 446,151 87,463 533,614 2031-2034 400,523 26,368 426,891 Total $ 1,239,088 $ 255,030 $ 1,494,118 West Orange County Water Board Loan On December 11, 2017, the City entered into financial participation agreement with the West Orange County Water Board (the "WOCWB") for relocation of the City's allocated 14.3% ownership in the waterline. The City's portion of project costs was in the amount of $894,928. The repayments are due quarterly on the first of the month commencing June 1, 2018. The interest rate ranges from 1.414% to 5.314% with maturity date on March 1, 2028. The outstanding balance at June 30, 2020 was $654,381. The annual debt service requirements are as follows: Year ending June 30, Principal Interest Total 2021 $ 84,436 $ 8,604 $ 93,040 2022 84,436 9,587 94,023 2023 84,436 9,895 94,331 2024 84,436 9,553 93,989 2025 84,436 8,483 92,919 2026-2028 232,201 12,437 244,638 Total $ 654,381 $ 58,559 $ 712,940 65 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 — Long -Term Liabilities (Continued) C. Fiduciary Activities 2000 Tax Allocation Bonds Series A - Publicly Offered Advance from Sewer Fund (Note 4) Total 2000 Tax Allocation Refunding Bonds On December 20, 2000, the Agency issued 2000 Tax Allocation Refunding Bonds, Series A and B for the Riverfront Redevelopment Project in the amounts of $8,520,000 and $685,000, respectively. Interest rate on the bonds varies from 4% to 5.375%. The Agency used the proceeds of Series A Bonds to finance the refunding and defeasance of $1,380,000 of 1986 Tax Allocation Bonds and $3,715,000 of 1991 Tax Allocation Bonds. Series B Bonds were used to pay bond issuance costs and finance certain redevelopment activities of the Agency. The Series A Bonds are payable exclusively from Tax Revenues and certain funds and accounts held under the indenture. Series B Bonds are to be paid exclusively from Surplus Tax Revenues and certain funds and accounts held under the indenture. The balance in the Series A bonds outstanding at June 30, 2020 was $685,000. The Series B bonds were paid off during the year ended June 30, 2019. This liability was transferred to the Successor Agency upon dissolution of the redevelopment agency. In the event of default the trustee may, upon written request of the owners of not less than a majority of the principal at the time outstanding, declare the principal of the bonds outstanding and interest accrued to be due and payable immediately. The unpaid interest and principal will accrue interest at the rate of 10% per annum. The annual debt service requirements are as follows: Year ending Series A Classification Balance Interest Balance Due within Due in more July 1, 2019 Additions Deletions June 30, 2020 One Year than One Year $ 1,290,000 $ $ (605,000) $ 685,000 $ 160,000 $ 525,000 233,166 (233,166) - - - $ 3,239,110 $ $ (838,166) $ 685,000 $ 160,000 $ 525,000 On December 20, 2000, the Agency issued 2000 Tax Allocation Refunding Bonds, Series A and B for the Riverfront Redevelopment Project in the amounts of $8,520,000 and $685,000, respectively. Interest rate on the bonds varies from 4% to 5.375%. The Agency used the proceeds of Series A Bonds to finance the refunding and defeasance of $1,380,000 of 1986 Tax Allocation Bonds and $3,715,000 of 1991 Tax Allocation Bonds. Series B Bonds were used to pay bond issuance costs and finance certain redevelopment activities of the Agency. The Series A Bonds are payable exclusively from Tax Revenues and certain funds and accounts held under the indenture. Series B Bonds are to be paid exclusively from Surplus Tax Revenues and certain funds and accounts held under the indenture. The balance in the Series A bonds outstanding at June 30, 2020 was $685,000. The Series B bonds were paid off during the year ended June 30, 2019. This liability was transferred to the Successor Agency upon dissolution of the redevelopment agency. In the event of default the trustee may, upon written request of the owners of not less than a majority of the principal at the time outstanding, declare the principal of the bonds outstanding and interest accrued to be due and payable immediately. The unpaid interest and principal will accrue interest at the rate of 10% per annum. The annual debt service requirements are as follows: Year ending Series A June 30, Principal Interest 2021 $ 160,000 $ 32,519 2022 165,000 23,784 2023 175,000 14,647 2024 185,000 4,972 Total $ 685,000 $ 75,922 66 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 7 — Non -City Obligations A. Heron Pointe Community Facilities District No. 2002-01 The Heron Pointe Community Facilities District No. 2002-01 was formed to finance public facilities improvements within Heron Pointe. The debt service payments on the bonds will be included on property tax bills within community facilities district and will be collected by the City and then forwarded to the paying agent. A Reserve Fund was established in which the City may make withdrawals enough to cover any delinquent payments on the reassessments. The City has no liability for the bonds beyond the amount held in the Reserve Fund. The bonds are not secured by the general taxing power of the City, county, state, or any political subdivision of the state nor have the City, county, state, or any political subdivision thereof pledged its full faith and credit for the repayment thereof. Since the City has no liability for these bonds, the reserve fund and debt service monies are stored in the Agency Fund and the debt is not included in the financial statements. The outstanding balance at June 30, 2020, was $2,955,000. B. Pacific Gateway Business Center Community Facilities District No 2005-01 The Pacific Gateway Business Center Community Facilities District No. 2005-01 was formed to finance public facilities within the Pacific Gateway. The debt service payments on the bonds will be included on property tax bills within the community facilities district and will be collected by the City and then forwarded to the paying agent. A Reserve Fund was established in which the City may make withdrawals enough to cover any delinquent payments on the reassessments. The City has no liability for the bonds beyond the amount held in the Reserve Fund. The bonds are not secured by the general taxing power of the City, county, state, or any political subdivision of the state nor have the City, county, state, or any political subdivision thereof pledged its full faith and credit for the repayment thereof. Since the City has no liability for these bonds, the reserve fund and debt service monies are stored in the Agency Fund and the debt is not included in the financial statements. The outstanding balance at June 30, 2020, was $7,575,000. Note 8 — Risk Management and Self Insurance Program A. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (the "Authority"). The Authority is composed of 118 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine -member Executive Committee. B. Self -Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self- insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk -sharing pool. 67 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 8 — Risk Management and Self Insurance Program (Continued) B. Self -Insurance Programs of the Authority (Continued) Primary Liabilitv Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub -limit of $40 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website: https://cjpia.or /cg overage/risk-sharing-pools/. Primary Workers' Compensation Program Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2019-20 the Authority's pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer's Liability losses from $5 million to $10 million are pooled among members. C. Purchased Insurance Pollution Legal Liability Insurance The City of Seal Beach participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Seal Beach. Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority has an aggregate limit of $50 million for the 3 -year period from July 1, 2017 through July 1, 2020. Each member of the Authority has a $10 million sub -limit during the 3 -year policy term. 68 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 8 — Risk Management and Self Insurance Program (Continued) C. Purchased Insurance (Continued) Property Insurance The City of Seal Beach participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Seal Beach property is currently insured according to a schedule of covered property submitted by the City of Seal Beach to the Authority. City of Seal Beach property currently has all-risk property insurance protection in the amount of $52,058,159. There is a $10,000 deductible per occurrence except for non -emergency vehicle insurance which has a $2,500 deductible. Earthquake and Flood Insurance The City of Seal Beach purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Seal Beach property currently has earthquake protection in the amount of $51,927,682. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Crime Insurance The City of Seal Beach purchases crime insurance coverage in the amount of $3,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. D. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2019-20. E. Claims Activity Claims expenses and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. There were workers' compensation claims that remained outstanding for claims occurred prior to joining the Authority. At June 30, 2020, the amount of these liabilities was $301,413 and was the City's best estimate based on available information. A summary of the changes in claims liabilities for the past three fiscal years is as follows: 69 Current Year Claims and Balance Changes in Claim Balance Workers' Compensation Beginning of Year Estimates Payments End of Year 2017-2018 $ 427,595 $ - $ (40,124) $ 387,471 2018-2019 387,471 92,274 (56,398) 423,347 2019-2020 423,347 - (121,934) 301,413 69 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 - Defined Benefit Pension Plans The following is a summary of net pension liabilities and related deferred outflows and inflows of resources as of June 30, 2020 and pension expenses for the year then ended June 30, 2020: Deferred outflows of resources: Pension contribution made after measurement date: Miscellaneous Safety Changes of assumptions: Miscellaneous Safety Difference between expected and actual experience: Miscellaneous Safety Adjustment due to differences in proportions: Miscellaneous Safety Total deferred outflows of resources Aggregate net pension liabilities: Aggregate net pension liabilities: Miscellaneous Safety Total net pension liabilities Deferred inflows of resources: Changes of assumptions: Miscellaneous Safety Difference between expected and actual experience: Miscellaneous Difference in projected and actual earnings on pension investments: Miscellaneous Safety Adjustment due to differences in proportions: Miscellaneous Safety Difference between City's contributions and proportionate share of contributions: Miscellaneous Safety Total deferred inflows of resources Pension expenses: Miscellaneous Safety Total pension expense Governmental Business -type Activities Activities Total $ 938,664 $ 336,522 $ 1,275,186 2,882,385 - 2,882,385 467,548 167,622 635,170 1,075,684 - 1,075,684 681,001 244,147 925,148 1,713,477 - 1,713,477 233,232 83,616 316,848 437,000 - 437,000 $ 8,428,991 $ 831,907 $ 9,260,898 $ 9,805,024 $ 3,515,209 $ 13,320,233 26,243,693 - 26,243,693 $ 36,048,717 $ 3,515,209 $ 39,563,926 $ 165,742 $ 59,420 $ 225,162 209,918 - 209,918 52,764 18,917 71,681 171,421 61,457 232,878 361,028 - 361,028 24,595 8,818 33,413 93,795 - 93,795 503,834 180,630 684,464 595,819 - 595,819 $ 2,178,916 $ 329,242 $ 2,508,158 $ 1,832,948 $ 560,762 $ 2,393,710 4,737,899 - 4,737,899 $ 6,570,847 $ 560,762 $ 7,131,609 70 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 — Defined Benefit Pension Plans (Continued) A. General Information about the Pension Plan Plan Description The City contributes to the California Public Employees' Retirement System ("Ca1PERS"), a cost-sharing multiple -employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Ca1PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the Ca1PERS annual financial report may be obtained from https://www.calpers.ca.goy/pace/forms-publications. Employees Covered by Benefit Terms At June 30, 2018, the following employees were covered by the benefit terms: Active employees Transferred and terminated employees Separated Retired Employees and Beneficiaries Total Benefit Provided Safety Police Other Safety Miscellaneous Mise PEPRA Safety Safety Fire PEPRA PEPRA 43 13 33 3 1 39 6 6 - - - 24 1 5 1 1 148 - 95 40 - 254 20 139 41 4 1 Ca1PERS provide retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety Ca1PERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay. Following are the benefit provisions for each plan: Cost-sharing Rate Plans PEPRA Miscellaneous Rate Miscellaneous Rate PEPRA Safety Rate Plan* Plan Safety Rate Plan* Plan Hire date Prior to January 1, January 1, 2013 and 2013 after Benefit formula 2% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age minimum 50 yrs minimum 52 yrs Monthly benefits, as a % of eligible compensation 1.426% - 2.418%, 1.000% - 2.500%, 50 yrs - 63+ yrs, 52 yrs - 67+ yrs, respectively respectively * Closed to new entrants 71 Prior to January 1, 2013 3% @ 50 5 years service monthly for life minimum 50 yrs 3.000%, 50+ yrs January 1, 2013 and after 2.7% @ 57 5 years service monthly for life minimum 50 yrs 2.000%-2.7000%, 52 yrs - 57+ yrs, respectively City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 — Defined Benefit Pension Plans (Continued) A. General Information about the Pension Plan (Continued) BeneftProvided (Continued) Participants are eligible for non -industrial disability retirement if they become disabled and have at least 5 years of credited service. There is no special age requirement. The standard non -industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees. An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre -retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate. Benefit terms provide for annual cost -of -living adjustments to each employee's retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent. Contributions Section 20814(c) of the California Public Employees' Retirement Law ("PERL") requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through Ca1PERS' annual actuarial valuation process. The Public agency cost-sharing plans covered by either the Safety risk pools, the Plan's actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2019 (the measurement date), the contribution rates were as follows: Cost-sharing Rate Plans PEPRA Miscellaneous Rate Miscellaneous Rate Plan* Plan Required employee contribution rates 7.000% 6.500% Required employer contribution rates 10.152% 7.266% * Closed to new entrants 72 PEPRA Safety Rate Safety Rate Plan* Plan 9.000% 12.250% 22.346% 12.965% City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 — Defined Benefit Pension Plans (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2018 valuation was rolled forward to determine June 30, 2019 total pension liability based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Mortality Rate Table' Post Retirement Benefit Increase Entry age normal in accordance with requirements of GASB 68 7.15% 2.50% Varies by Entry Age and Service Derived using Ca1PERS' Membership Data for all Funds Contract COLA up to 2.5% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.5% thereafter 'The mortality table used was developed based on Ca1PERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on Ca1PERS demographic data from 1997 to 2015) that can be found on the Ca1PERS website. Change of Assumption In 2019, there were no changes in assumptions. Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, Ca1PERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed: 73 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 — Defined Benefit Pension Plans (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Long-term Expected Rate of Return (Continued Discount Rate The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (6.15%) or 1 percentage -point higher (8.15%) than the current rate: Plan's Net Pension Liability/(Asset) Discount Rate Current Discount Discount Rate -1%(6.15%) Rate (7.15%) +1%(8.15%) Miscellaneous $ 21,366,351 $ 13,320,233 $ 6,678,731 Safety $ 39,749,526 $ 26,243,693 $ 15,171,026 74 Current Target Real Return Real Return Asset Class(l) Allocation Years 1-102 Years 11+3 Global Equity 50.0% 4.80% 5.98% Fixed Income 28.0% 1.00% 2.62% Inflation Assets 0.0% 0.77% 1.81% Private Equity 8.0% 6.30% 7.23% Real Estate 13.0% 3.75% 4.93% Liquidity 1.0% 0.00% -0.92% 100.0% 1 In the CaIPERS's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. 2 An expected inflation of 2.00% used for this period 3 An expected inflation of 2.92% used for this period. Discount Rate The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (6.15%) or 1 percentage -point higher (8.15%) than the current rate: Plan's Net Pension Liability/(Asset) Discount Rate Current Discount Discount Rate -1%(6.15%) Rate (7.15%) +1%(8.15%) Miscellaneous $ 21,366,351 $ 13,320,233 $ 6,678,731 Safety $ 39,749,526 $ 26,243,693 $ 15,171,026 74 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 — Defined Benefit Pension Plans (Continued) A Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Pension Plan Fiduciary Net Position Detail information about the plan's fiduciary net position is available in the separately issued Ca1PERS financial report and can be obtained from CalPERS' website under Forms and Publications. Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan's proportionate share of the risk pool collective net pension liability over the measurement period: Miscellaneous Balance at: 6/30/18 (Valuation date) Balance at: 6/30/19 (Measurement date) Net Changes during 2018-2019 Safety Balance at: 6/30/18 (Valuation date) Balance at: 6/30/19 (Measurement date) Net Changes during 2018-2019 Increase (Decrease) Plan Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) 49,084,678 $ 36,903,845 $ 12,180,833 49,819,798 36,499,565 13,320,233 735,120 (404,280) 1,139,400 87,728,966 $ 63,269,230 $ 24,459,736 91,349,819 65,106,126 26,243,693 3,620, 853 1,836, 896 1,783,957 The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan's proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2018). The risk pool's fiduciary net position ("FNP") subtracted from its total pension liability ("TPL") determines the net pension liability ("NPL") at the valuation date. (2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2019). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool's FNP at the measurement date denotes the aggregate risk pool's FNP at June 30, 2019 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2018-2019). (3) The individual plan's TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan's share of the actuarial accrued liability. FNP is allocated based on the rate plan's share of the fair value assets. (4) Two ratios are created by dividing the plan's individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool's total TPL and FNP, respectively. 75 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 — Defined Benefit Pension Plans (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share ofNet Pension Liability and Pension Expense (Continued (5) The plan's TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan's FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan's NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5). Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City's share of contributions during measurement period. The City's proportionate share of the net pension liability was as follows: Miscellaneous Safety June 30, 2018 0.12641% 0.25383% June 30, 2019 0.12999% 0.25611% Change - Increase (Decrease) 0.00358% 0.00228% The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5 -years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period. The expected average remaining service lifetime ("EARSL") is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2018-2019 measurement period is 3.8 years, which was obtained by dividing the total service years of 530,470 (the sum of remaining service lifetimes of the active employees) by 140,593 (the total number of participants: active, inactive, and retired). At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 76 Miscellaneous Safety Deferred outflows Deferred inflows Deferred outflows Deferred inflows of Resources of Resources of Resources of Resources Pension contribution after measurement date $ 1,275,186 $ - $ 2,882,385 $ - Changes of assumptions 635,170 (225,162) 1,075,684 (209,918) Difference between expected and actual experience 925,148 (71,681) 1,713,477 - Difference between projected and actual earning on pension plan investments - (232,878) - (361,028) Adjustment due to differences in proportions 316,848 (33,413) 437,000 (93,795) Difference between City contributions and proportionate share of contributions - (684,464) - (595,819) Total $ 3,152,352 $ (1,247,598) $ 6,108,546 $ (1,260,560) 76 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 — Defined Benefit Pension Plans (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) Deferred outflows of resources related to pensions resulting from the City's contributions made subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Measurement Deferred Outflows/ Period (Inflows) of Resources Ended June 30, Miscellaneous Safety 2020 $ 703,914 $ 1,719,244 2021 (204,780) (91,319) 2022 83,378 267,432 2023 47,056 70,244 2024 - - Thereafter - - $ 629,568 $ 1,965,601 Note 10 — Other Postemployment Benefits ("OPEB") Plan The following is a summary of net other postemployment benefits ("OPEB") liabilities and related deferred outflows and inflows of resources as of June 30, 2020 and pension expenses for the year then ended June 30, 2020: Deferred outflows of resources: OPEB contribution made after measurement date Aggregate Net OPEB liabilities Deferred inflows of resources: Changes of assumptions Difference between expected and actual experience Difference in projected and actual earnings on OPEB investments Total deferred inflows of resources OPEB expenses (credit) A. General Information about the OPEB Plan Plan Description Governmental Business -type Activities Activities Total $ 789,072 $ 78,040 $ 867,112 $ 5,458,412 $ 539,843 $ 5,998,255 $ 296,416 $ 29,316 $ 325,732 84,427 8,350 92,777 61,656 6,098 67,754 $ 442,499 $ 43,764 $ 486,263 $ 994,423 $ (447,805) $ 546,618 The City provides postretirement medical benefits to employees who retire directly from the City under Ca1PERS under a single -employer defined benefit post -employment benefits plan. Eligible retirees can continue participation in the City medical plans ("PEMHCA"). For miscellaneous retirees, the City contributes up to a capped dollar amount which varies by bargaining unit, medical coverage, and years of service. For police safety retirees, the City contribution rate varies by date of hire and date of retirement. 77 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Other Postemployment Benefits ("OPEB") Plan (Continued) A. General Information about the OPEB Plan (Continued) Benefits Provided Future Retirees are eligible for PEMCHA minimum medical benefits ($139 per month in 2020) if they retire at Age 50 and above. For legacy hires, reimbursements are generally subject to a maximum, which varies by bargaining group and service years. Dependents are eligible to enroll subject to service year requirements. Employees Covered by Benefit Term Active employees Inactive employees, spouses, or beneficiaries currently receiving benefit payments Inactive employees entitled to but not yet receiving benefit payments Total Contributions The City makes contributions based on an actuarially determined rate. B. Net OPEB Liability 94 74 168 The City's net OPEB liability was measured as of June 30, 2019, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2019. Actuarial Assumptions The total OPEB liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial Cost Method Actuarial Assumptions: Inflation Salary increases Investment rate of return Healthcare cost trend rates Mortality rate Discount Rate Entry age normal level percentage of salary 2.50% Base salary increases in year one: 2.75% Base salary increases in subsequent years: 2.75% Additional merit -based increases based on CalPERS. 6.50% 6.40% for FY2020, trending down to 4.00% in FY2076 and later years. Derived using Ca1PERS' Membership Data for all Funds. The discount rate used to measure the total OPEB liability was 6.50%. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return. 78 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Other Postemployment Benefits ("OPEB") Plan (Continued) C. Changes in the Net OPEB Liability Balances as of June 30, 2018 Changes during the measurement period: Service cost Interest Differences between expected and actual experience Change of assumptions Contributions: Employer - City's contribution Employer - implicit subsidy Employee Net investment income Benefit payments, including refunds of employee Contributions Implicit rate subsidy fulfilled Administrative expenses Net changes during measurement period 2018-2019 Balances as of June 30, 2019 (Measurement Date) 324,350 (324,350) (419,956) (419,956) - (136,833) (136,833) - - (1,095) 1,095 283,027 613,499 (330,472) $ 11,623,641 $ 5,625,386 $ 5,998,255 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or one percentage point higher (7.50%) follows: Net OPEB Liability/(Asset) Discount Rate Current Discount Discount Rate -1%(5.50%) Rate (6.50%) + 1% (7.50%) $ 7,424,489 $ 5,998,255 $ 4,808,056 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (5.40%) or one percentage point higher (7.40%) than current healthcare cost trend rates follows: Net OPEB Liability/(Asset) Healthcare 1% Decrease Cost Trend Rate 1% Increase (5.40% to 3.00%) (6.40% to 4.00%) (7.40% to 5.00%) $ 4,893,137 $ 5,998,255 $ 7,326,091 79 Increase (Decrease) Total OPEB Fiduciary Net Net OPEB Liability Position Liability $ 11,340,614 $ 5,011,887 $ 6,328,727 262,452 - 262,452 736,104 736,104 (109,256) (109,256) (49,484) - (49,484) - 710,200 (710,200) - 136,833 (136,833) 324,350 (324,350) (419,956) (419,956) - (136,833) (136,833) - - (1,095) 1,095 283,027 613,499 (330,472) $ 11,623,641 $ 5,625,386 $ 5,998,255 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or one percentage point higher (7.50%) follows: Net OPEB Liability/(Asset) Discount Rate Current Discount Discount Rate -1%(5.50%) Rate (6.50%) + 1% (7.50%) $ 7,424,489 $ 5,998,255 $ 4,808,056 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (5.40%) or one percentage point higher (7.40%) than current healthcare cost trend rates follows: Net OPEB Liability/(Asset) Healthcare 1% Decrease Cost Trend Rate 1% Increase (5.40% to 3.00%) (6.40% to 4.00%) (7.40% to 5.00%) $ 4,893,137 $ 5,998,255 $ 7,326,091 79 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Other Postemployment Benefits ("OPEB") Plan (Continued) D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2020, the City recognized an OPEB expense of $546,618. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: OPEB contribution after measurement date Difference between expected and actual experience Changes of assumptions Difference between projected and actual earning on OPEB plan investments Total Deferred outflows Deferred inflows of Resources of Resources $ 867,112 $ (92,777) (325,732) - (67,754) $ 867,112 $ (486,263) Deferred outflows of resources related to OPEB resulting from City's contributions subsequent to the measurement date in the amount of $867,112 will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Measurement Period Ending June 30, 2020 2021 2022 2023 2024 Thereafter 80 Deferred Outflows/ (Inflows) of Resources $ (120,102) (120,103) (95,420) (87,001) (48,555) (15,082) $ (486,263) City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 11- Classification of Fund Balances At June 30, 2020, fund balances are classified in the governmental funds as follows: 81 Capital Projects and Equipment Nonmajor General Capital Projects Governmental Fund Fund Funds Total Nonspendable: Prepaid items $ 41,776 $ - $ - $ 41,776 Restricted: Employee Benefits 13,046 - - 13,046 Waste Management 321,216 - - 321,216 Parking In -lieu 168,687 - - 168,687 1-405 Corridor Improvements 1,687,520 - - 1,687,520 Supplemental Law Enforcement - - 184,386 184,386 Detention Center - - 28,094 28,094 Police Asset Forfeiture - - 63,352 63,352 Air Quality Improvements - - 7,867 7,867 Parks Improvement - - 41,867 41,867 Traffic Impact - - 185,760 185,760 State Gasoline Tax - - 1,030,526 1,030,526 Measure M2 - - 1,069,419 1,069,419 Community Development Block Grant - - 10,241 10,241 Landscape District - - 580,957 580,957 Heron Pointe - - 60,464 60,464 Pacific Gateway - - 122,503 122,503 Seal Beach Cable - - 429,854 429,854 SB 1 - - 679,905 679,905 Citywide Grants - - 268,521 268,521 City Debt Service - - 647,266 647,266 Total restricted 2,190,469 - 5,410,982 7,601,451 Committed: College Park East 477,000 - - 477,000 Swimming Pool 4,548,047 - - 4,548,047 Economic Contingency 1,750,000 - - 1,750,000 Street Improvement 117,167 - - 117,167 Fiscal Policy 8,235,831 - - 8,235,831 Capital Project Improvement 1,939,171 - - 1,939,171 Total restricted 17,067,216 - - 17,067,216 Assigned: Community Development 1,191,618 - - 1,191,618 Pier Restaurant 1,395,638 - - 1,395,638 Compensated Absences 1,422,548 - - 1,422,548 Encumbrances 94,155 - - 94,155 Other 266,100 - - 266,100 Total assigned 4,370,059 - - 4,370,059 Unassigned (deficit) 3,509,872 (138,577) (533,117) 2,838,178 Total fund balances $ 27,179,392 $ (138,577) $ 4,877,865 $ 31,918,680 81 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 12 — Commitments and Contingencies A. Commitments The City had no material commitments as of June 30, 2020. B. Contingencies The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. C. Grants Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City. D. Subsequent Event The City Council, as the Board of Directors of the Successor Agency to the Seal Beach RDA authorized the early redemption of the 2000 Tax Allocation Refunding Bonds on June 22, 2020. The outstanding balance of the bonds in the amount of $525,000 was fully redeemed on November 5, 2020. E. Coronavirus Disease —19 (COVID-19) The COVID-19 outbreak in the United States has caused disruptions through mandated and voluntary closings of businesses in the States of California While the disruption is currently expected to be temporary, there is considerable uncertainty around the duration of the closings and the related effect on tax revenues of the City. However, the related financial impact and duration cannot be reasonably estimated at this time. Note 13 — Individual Fund Disclosure A. Expenditures in Excess of Appropriation The following funds report expenditures in excess of appropriations for the year ended June 30, 2020. 82 Expenditures in Excess of Expenditures Appropriations Appropriations Nonmajor Governmental Funds: Nonmajor Special Revenue Funds: Air Quality Improvement Public works $ 32,612 $ 31,200 $ (1,412) State Gasoline Tax Public works 2,642 1,800 (842) Heron Pointe Community development 9,606 8,100 (1,506) Seal Beach Cable General government 89,199 84,500 (4,699) 82 City of Seal Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 13 — Individual Fund Disclosure (Continued) A Deficit Net Positions and Fund Balances Funds with deficit fund balances at June 30, 2020 are as follows: Deficit Capital Projects and Equipment Capital Projects Fund $ (138,577) Police Grants Special Revenue Fund (21,859) CARES Act Special Revenue Fund (511,258) The City plans to eliminate the deficit fund balances with future grant revenues. 83 This page intentionally left blank. 84 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 85 This page intentionally left blank. 86 City of Seal Beach Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - General Fund For the Year Ended June 30, 2020 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions Miscellaneous Total revenues Expenditures: Current: General government Public safety Community development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund Balance: Beginning of year End of year Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 25,878,800 $ 25,878,800 $ 25,624,395 $ (254,405) 712,200 712,200 844,274 132,074 2,960,500 2,960,500 3,160,261 199,761 5,050,700 5,050,700 4,562,469 (488,231) 792,900 792,900 1,885,265 1,092,365 1,410,500 1,410,500 1,239,154 (171,346) 9,000 9,000 20,942 11,942 372,100 372,100 2,987,410 2,615,310 37,186,700 37,186,700 40,324,170 3,137,470 6,982,300 7,099,100 5,994,506 1,104,594 20,447,600 20,471,700 20,460,170 11,530 1,498,500 1,429,700 1,027,670 402,030 1,079,000 1,079,200 852,664 226,536 5,792,600 5,991,200 5,697,425 293,775 57,000 57,000 - 57,000 74,400 74,400 74,370 30 17,400 17,400 17,441 (41) 35,948,800 36,219,700 34,124,246 2,095,454 1,237,900 967,000 6,199,924 5,232,924 213,511 213,511 980,746 767,235 (3,801,911) (3,953,611) (2,115,367) 1,838,244 (3,588,400) (3,740,100) (1,134,621) 2,605,479 $ (2,350,500) $ (2,773,100) 87 5,065,303 $ 7,838,403 22,114,088 $ 27,179,391 City of Seal Beach Required Supplementary Information (Unaudited) Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2020 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Measurement Date City's Proportion of the Net Pension Liability City's Proportionate Share of the Net Pension Liability City's Covered Payroll City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability California Public Employees' Retirement System ("CalPERS") Safety Plan Measurement Date City's Proportion of the Net Pension Liability City's Proportionate Share of the Net Pension Liability City's Covered Payroll City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability June 30, 2019 0.12949% $ 13,320,233 $ 4,721,968 282.09% June 30, 2019 0.25611% $ 26,243,693 $ 5,137,216 510.85% 71.27% 1 Historical information is presented only for measurement periods for which GASB 68 is implemented. Additional years will be presented as they become available. 88 City of Seal Beach Required Supplementary Information (Unaudited) Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2020 Last Ten Fiscal Years California Public Employees' Retirement System ("Ca1PERS") Miscellaneous Plan Measurement Date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014' City's Proportion of the Net Pension Liability 0.12641% 0.12396% 0.12144% 0.11333% 0.11644% City's Proportionate Share of the Net Pension Liability City's Covered Payroll City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability Measurement Date $ 12,180,833 $ 12,293,741 $ 10,508,345 $ 7,778,736 $ 7,245,313 $ 4,713,200 $ 4,385,712 $ 4,226,024 $ 4,710,212 $ 4,503,370 258.44% 280.31% 248.66% 165.15% 160.89% 75.18% 75.11% 76.88% 82.15% 83.18% California Public Employees' Retirement System ("CalPERS") Safety Plan City's Proportion of the Net Pension Liability City's Proportionate Share of the Net Pension Liability City's Covered Payroll City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014' 0.25383% 0.24294% 0.24301% 0.23685% 0.19002% $ 24,459,736 $ 24,093,096 $ 21,027,509 $ 16,257,122 $ 11,823,793 $ 4,833,363 $ 4,200,942 $ 4,454,998 $ 4,734,950 $ 4,290,168 506.06% 573.52% 472.00% 343.34% 275.60% 72.12% 72.09% 73.44% 78.58% 81.42% 1 Historical information is presented only for measurement periods for which GASB 68 is implemented. Additional years will be presented as they become available. 89 City of Seal Beach Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions For the Year Ended June 30, 2020 Last Ten Fiscal Years California Public Employees' Retirement System ("Ca1PERS") Miscellaneous Plan Fiscal year Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered Payroll Contributions as a Percentage of Covered Payroll Fiscal year ?m 9 -?n ?m R-19 $ 1,275,186 $ 1,076,211 (1,275,186) (1,076,211) $ 4,851,822 $ 4,721,968 California Public Employees' Retirement System ("Ca1PERS") Safety Plan Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered Payroll Contributions as a Percentage of Covered Payroll 26.28% 22.79% Nm Q -W) int R -t 9 $ 2,882,385 $ 2,509,250 (2,882,385) (2,509,250) $ 5,278,489 $ 5,137,216 54.61% 48.84% 1 Historical information is presented only for measurement periods for which GASB 68 is implemented. Additional years will be presented as they become available. 2 Includes one year's payroll growth using 2.75 percent payroll assumption for fiscal year 2019-20. Notes to Schedule: Benefit Changes: There were no changes to benefit terms. Changes of Assumptions: In 2019, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the Ca1PERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 90 City of Seal Beach Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) For the Year Ended June 30, 2020 Last Ten Fiscal Years California Public Employees' Retirement System ("Ca1PERS") Miscellaneous Plan Fiscal year 2017-18 2016-17 2015-16 2014-15 2013-141 Actuarially Determined Contribution $ 911,168 $ 791,754 $ 709,945 $ 734,255 $ 614,667 Contribution in Relation to the Actuarially Determined Contribution (911,168) (791,754) (709,945) (734,255) (614,667) Contribution Deficiency (Excess) $ $ - $ - $ - $ - Covered Payroll $ 4.713,200 $ 4,385.712 $ 4,226,024 $ 4,710.212 $ 4,597,510 Contributions as a Percentage of Covered Payroll 19.33% 18.05% 16.80% 15.59% 13.37% California Public Employees' Retirement System ("Ca1PERS") Safety Plan Fiscal year 2017-18 2016-17 2015-16 2014-15 2013-141 Actuarially Determined Contribution $ 2,127,080 $ 1,748,129 $ 1,608,716 $ 1,476,452 $ 2,157,763 Contribution in Relation to the Actuarially Determined Contribution (2,127,080) (1,748,129) (1,608,716) (1,476,452) (2,157,763) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - Covered Payroll $ 4,833,363 $ 4,200,942 $ 4,454,998 $ 4,734,950 $ 3,995,001 Contributions as a Percentage of Covered Payroll 44.01% 41.61% 36.11% 31.18% 54.01% 1 Historical information is presented only for measurement periods for which GASB 68 is implemented. Additional years will be presented as they become available. Notes to Schedule: Benefit Changes: There were no changes to benefit terms. Changes of Assumptions: In 2019, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the Ca1PERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 91 This page intentionally left blank. 92 City of Seal Beach Required Supplementary Information (Unaudited) Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2020 Last Ten Fiscal Years Other Postemployment Benefits ("OPEB") Measurement period Total OPEB liability Service cost Interest Differences between expected and actual experience Changes of assumption Benefit payments Implicit rate subsidy fulfilled Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending (a) OPEB fiduciary net position Contributions: Employer - City's contribution Employer - Implicit subsidy Net investment income Other additions Benefit payments Implicit rate subsidy fulfilled Administrative expense Other deductions Net change in plan fiduciary net position Plan fiduciary net position, beginning Plan fiduciary net position, ending (b) Plan net OPEB liability - ending (a) - (b) Plan's fiduciary net position as a percentage of the total OPEB liability Covered payroll June 30, 2019 June 30, 2018 June 30, 20171 $ 262,452 $ 275,665 $ 267,961 736,104 786,251 752,721 (109,256) - - (49,484) (413,262) - (419,956) (406,031) (454,685) (136,833) (123,043) (114,993) 283,027 119,580 451,004 11,340,614 11,221,034 10,770,030 $ 11,623,641 $ 11,340,614 $ 11,221,034 $ 710,200 $ 720,871 $ 567,185 136,833 123,043 114,993 324,350 346,820 411,482 - 3,763 - (419,956) (406,031) (454,685) (136,833) (123,043) (114,993) (1,095) (2,323) (1,995) - (5,765) - 613,499 657,335 521,987 5,011,887 4,354,552 3,832,565 5,625,386 5,011,887 4,354,552 $ 5,998,255 $ 6,328,727 $ 6,866,482 48.40% 44.19% 38.81% $ 9,923,172 $ 9,518,945 $ 8,807,230 Net OPEB liability as a percentage of covered payroll 60.45% 66.49% 77.96% 1 Historical information is presented only for measurement periods for which GASB 75 is implemented. 93 City of Seal Beach Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2020 Fiscal year end Actuarially determined contribution Contribution in relation to the actuarially determined contribution2 Contribution deficiency/(excess) Covered payro113 Last Ten Fiscal Years Other Postemployment Benefits ("OPEB") 2019-20 2018-19 2017-18 2016-171 $ 763,351 $ 755,936 $ 833,241 $ 812,317 (867,112) (847,033) (843,914) (682,178) $ (103,761) $ (91,097) $ (10,673) $ 130,139 $ 10,196,059 $ 9,923,172 $ 9,518,945 $ 8,807,230 Contributions as a percentage of covered payroll 8.50% 8.54% 8.87% 7.75% 1 Historical information is presented only for measurement periods for which GASB 75 is implemented. 2 The June 30, 2019 actuarial valuation provided the actuarially determined contributions for fiscal year ended June 30, 2020. 3 Includes one year's payroll growth using 2.75 percent payroll assumption from fiscal year 2018-19. Notes to Schedule: Valuation date: June 30, 2019 Methods and assumptions used to determine contribution rates: Actuarial cost method: Entry age normal, level percent of pay Inflation: 2.50% per year Assumed payroll growth: 2.75% year one and thereafter Healthcare cost trend: 6.40°/x, trending down to 4.00% Rate of return on assets: 6.50% Mortality: Based on assumptions for Public Agency Miscellaneous and Police members published in the December 2017 Ca1PERS Experience Study 94 City of Seal Beach Required Supplementary Information (Unaudited) Notes to the Budgetary Comparison Schedule For the Year Ended June 30. 2020 Budgetary Control and Accounting Policy The City prepares its budgets on the basis of estimated revenues and expenditures and, accordingly, the budget amounts included in the accompanying financial statements are presented on a basis substantially consistent with generally accepted accounting principles. Encumbrance accounting is utilized during the fiscal year, whereby purchase orders, contracts and other commitments are recorded in order to control appropriations. However, at fiscal year end, all appropriations lapse. Accordingly, encumbrances are cancelled and generally are re -appropriated as part of the following year's budget. Encumbrances are not included in reported expenditures. Annual budgets are adopted for the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds, except for Parks Improvement Special Revenue Fund and CARES Act Special Revenue Fund. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. The budgetary level of control for all governmental fund types is the fund level. The City Manager has the discretion to transfer appropriations between departments within a fund, but transfers between funds must be approved by the City Council. 95 This page intentionally left blank. 96 SUPPLEMENTARY INFORMATION 97 This page intentionally left blank. 98 City of Seal Beach Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Capital Projects and Equipment Capital Projects Fund For the Year Ended June 30, 2020 Revenues: Miscellaneous Expenditures: Current Public works Capital outlay Total expenditures Revenues over (under) expenditures Other Financing Sources: Transfers in Net change in fund balance Fund Balance: Beginning of Year End of Year Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ 7,612 $ 7,612 - - 740,120 (740,120) 6,994,700 7,146,400 1,729,166 5,417,234 6,994,700 7,146,400 2,469,286 4,677,114 (6,994,700) (7,146,400) (2,461,674) 4,684,726 6,994,700 7,146,400 99 2,597,208 (4,549,192) 135,534 $ 135,534 (274,111) $ (138,577) This page intentionally left blank. 100 NONMAJOR GOVERNMENTAL FUNDS Street Lighting Special Revenue Fund: To account for special assessments that are restricted for the maintenance of streetlights and to finance the electricity used by the streetlights. Supplemental Law Enforcement Special Revenue Fund: To account for funds received from the State under the State Citizens Option for Public Safety Program. Certain procedures are required to be implemented prior to the use of the funds, and the funds cannot be used to supplant existing funding for law enforcement. Detention Center Special Revenue Fund: To account for funds initially funded by monies seeded the previous jail services vendor. The revenues also derived from sales of commissary items to the prisoners for their benefit. Police Asset Forfeiture Special Revenue Fund: To accounts for revenues derived from monies and property seized in drug-related incidents. Air Quality Improvement Special Revenue Fund: To accounts for supplemental vehicle license fee revenue distributed to Cities by the South Coast Air Quality Management District pursuant to Assembly Bill 2766. Expenditures are restricted for programs that will reduce air pollution by reducing, directly or indirectly, mobile source emission pollutants. Park Improvement Special Revenue Fund: To account for the Quimby Act Fees received by developers that are restricted for the improvement of parks and recreation facilities. Traffic Impact Special Revenue Fund: To account for fair -share based fees that will serve to offset, or mitigate, the traffic impacts caused by new development. State Gasoline Tax Special Revenue Fund: To accounts for locally shared gas tax monies collected by the State. Expenditures are restricted for repair, construction, maintenance and right-of-way acquisitions relating to streets and highways. Measure M2 Special Revenue Fund: To account for funds for transportation improvements through the Measure M Transportation Investment Plan (M2) such as major improvement plans target Orange County freeways, streets and roads, transit and environmental programs. Community Development Block Grant (CDBG) Special Revenue Fund: To account for resources that are restricted for a wide variety of unique community development needs. Police Grants Special Revenue Fund: To account for various grants include the Urban Area Security Initiative (UASI), the Office of Traffic Safety (OTS) DUI grant reimburses funds advanced by the City for DUI enforcement, the Bullet Proof Vest Protection (BVP) grant which provides matching funds that are restricted for the purchase of bullet -resistant vests, the Alcoholic Beverage Control (ABC) grant and the Justice Assistance Grant (JAG). Landscape District Special Revenue Fund: To account for special assessment that are restricted for costs related to the maintenance of parks, parkways and open space within the Community Facility District 2002-02 (Landscape Maintenance). Heron Pointe Special Revenue Fund: To account for the construction and acquisition of certain public street improvements, water and sanitary sewer improvements, dry utility improvements, park and landscaping improvements. Pacific Gateway Special Revenue Fund: To account for special assessment that are restricted for costs related to the maintenance of parks, parkways and open space within the District (Landscape Maintenance). Seal Beach Cable Special Revenue Fund: To account for revenues derived from PEGS fees which provide for channel capacity to be designated for public, education, or government use. SB I Special Revenue Fund: To account for revenue restricted for a wide range of transportation improvement projects. CARES Act Special Revenue Fund: To account for the revenues and expenditures of CARES Act funds. Citywide Grants Special Revenue Fund: The Citywide Grants Special Revenue Fund is used to account for various Federal and State grants that are restricted to expenditures for specific projects or purposes. City Debt Service Debt Service Fund: To accounts for resources that are restricted for the payments of long-term debt. 101 City of Seal Beach Combining Balance Sheet Nonmajor Governmental Funds June 30, 2020 102 Special Revenue Supplemental Street Law Detention Police Asset Lighting Enforcement Center Forfeiture ASSETS Cash and investments $ 14,021 $ 187,462 $ 26,094 $ 54,495 Receivables: Accounts - - 2,601 16,588 Taxes 1,110 - - Interest - - - - Due from other governments - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 15,131 $ 187,462 $ 28,695 $ 71,083 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 15,131 $ 2,021 $ 601 $ - Accrued wages and benefits payable - 1,055 - 7,731 Unearned revenues - - - - Due to other funds - - - - Total Liabilities 15,131 3,076 601 7,731 Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Restricted - 184,386 28,094 63,352 Unassigned (deficit) - - - - Total Fund Balances - 184,386 28,094 63,352 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 15,131 $ 187,462 $ 28,695 $ 71,083 102 City of Seal Beach Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 ASSETS Cash and investments Receivables: Accounts Taxes Interest Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Accrued wages and benefits payable Unearned revenues Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted Unassigned (deficit) Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Special Revenue 103 Air Quality Park Traffic State Improvement Improvement Impact Gasoline Tax $ 20 $ 41,867 $ 185,760 $ 978,354 7,847 - - - - - - 52,172 $ 7,867 $ 41,867 $ 185,760 $ 1,030,526 7,867 41,867 185,760 1,030,526 7,867 41,867 185,760 1,030,526 $ 7,867 $ 41,867 $ 185,760 $ 1,030,526 (Continued) 103 City of Seal Beach Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 104 Special Revenue Community Development Police Landscape Measure M2 Block Grant Grants District ASSETS Cash and investments $ 1,018,097 $ - $ - $ 582,706 Receivables: Accounts 51,322 34,862 108,974 - Taxes - - - 4,050 Interest - - - - Due from other governments - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,069,419 $ 34,862 $ 108,974 $ 586,756 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ - $ - $ 3,941 Accrued wages and benefits payable - - 391 1,858 Unearned revenues - - - - Due to other funds - 24,621 108,388 - Total Liabilities - 24,621 108,779 5,799 Deferred Inflows of Resources: Unavailable revenues - - 22,054 - Total Deferred Inflows of Resources - - 22,054 - Fund Balances: Restricted 1,069,419 10,241 - 580,957 Unassigned (deficit) - - (21,859) - Total Fund Balances 1,069,419 10,241 (21,859) 580,957 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 1,069,419 $ 34,862 $ 108,974 $ 586,756 104 City of Seal Beach Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 ASSETS Cash and investments Receivables: Accounts Taxes Interest Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Accrued wages and benefits payable Unearned revenues Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted Unassigned (deficit) Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Special Revenue 105 Pacific Seal Beach Heron Pointe Gateway Cable SB 1 $ 60,464 $ 125,942 $ 400,755 $ 648,638 - - 28,560 - - 265 - 31,267 - - 539 - $ 60,464 $ 126,207 $ 429,854 $ 679,905 $ - $ 1,846 $ - $ - - 1,858 - - - 3,704 - - 60,464 122,503 429,854 679,905 60,464 122,503 429,854 679,905 $ 60,464 $ 126,207 $ 429,854 $ 679,905 (Continued) 105 City of Seal Beach Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2020 ASSETS Cash and investments Receivables: Accounts Taxes Interest Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Accrued wages and benefits payable Unearned revenues Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted Unassigned (deficit) Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances 106 Special Revenue Debt Service Total Other CARES Citywide City Debt Governmental Act Grants Service Funds $ 564,145 $ 261,545 $ - $ 5,150,365 - 6,976 - 257,730 - - - 88,864 - - - 539 - - 647,266 647,266 $ 564,145 $ 268,521 $ 647,266 $ 6,144,764 $ - $ - $ - $ 23,540 - - - 12,893 562,803 - - 562,803 512,600 - - 645,609 1,075,403 - - 1,244,845 - - - 22,054 - - - 22,054 - 268,521 647,266 5,410,982 (511,258) - - (533,117) (511,258) 268,521 647,266 4,877,865 $ 564,145 $ 268,521 $ 647,266 $ 6,144,764 (Concluded) 106 City of Seal Beach Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2020 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Total revenues Expenditures: Current: General government Public safety Community development Public works Debt service: Principal Interest and fiscal charges Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund Balance: Beginning of Year End of Year Special Revenue 107 (Continued) Supplemental Street Law Detention Police Asset Lighting Enforcement Center Forfeiture $ 140,163 $ - $ - $ - - 161,856 - 342,567 - - 4,981 - 4,492 17,943 2,287 140,163 166,348 22,924 344,854 - 109,567 13,996 236,684 199,431 - - 199,431 109,567 13,996 236,684 (59,268) 56,781 8,928 108,170 59,268 - - - 59,268 - - - - 56,781 8,928 108,170 - 127,605 19,166 (44,818) $ - $ 184,386 $ 28,094 $ 63,352 107 (Continued) City of Seal Beach Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2020 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Total revenues Expenditures: Current: General government Public safety Community development Public works Debt service: Principal Interest and fiscal charges Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund Balance: Beginning of Year End of Year Special Revenue Air Quality Park Traffic State Improvement Improvement Impact Gasoline Tax $ - $ - $ - $ 632,469 31,650 30,000 - - 76 707 3,952 21,211 31,726 30,707 3,952 653,680 32,612 - - 2,642 - 2,642 32,612 - (886) 30,707 3,952 651,038 - - 13,395 - - (5,817) - (321,152) - (5,817) 13,395 (321,152) (886) 24,890 17,347 329,886 8,753 16,977 168,413 700,640 $ 7,867 $ 41,867 $ 185,760 $ 1,030,526 108 City of Seal Beach Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2020 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Total revenues Expenditures: Current: General government Public safety Community development Public works Debt service: Principal Interest and fiscal charges Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund Balance: Beginning of Year End of Year Special Revenue 1,292,461 10,241 (106,710) 510,680 $ 1,069,419 $ 10,241 $ (21,859) $ 580,957 (Continued) 109 Community Development Police Landscape Measure M2 Block Grant Grants District $ 430,790 $ - $ - $ 180,918 - 180,000 185,541 - 23,166 - 12,167 453,956 180,000 185,541 193,085 - - 100,690 - - 180,000 - 109,808 - 180,000 100,690 109,808 453,956 - 84,851 83,277 (676,998)- (13,000) (676,998) - - (13,000) (223,042) - 84,851 70,277 1,292,461 10,241 (106,710) 510,680 $ 1,069,419 $ 10,241 $ (21,859) $ 580,957 (Continued) 109 City of Seal Beach Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2020 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Total Revenues Expenditures: Current: General government Public safety Community development Public works Debt service: Principal Interest and fiscal charges Total Expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources (uses) Net Change in Fund Balances Fund Balance: Beginning of Year End of Year Special Revenue 110 (Continued) Pacific Seal Beach Heron Pointe Gateway Cable SBI $ - $ 73,631 $ - $ 399,214 - - 116,626 - - - 8,490 14,712 15,000 25,000 - - 15,000 98,631 125,116 413,926 - - 89,199 - 9,606 81,615 - - 9,606 81,615 89,199 - 5,394 17,016 35,917 413,926 (11,000) (26,000) - (174,974) (11,000) (26,000) - (174,974) (5,606) (8,984) 35,917 238,952 66,070 131,487 393,937 440,953 $ 60,464 $ 122,503 $ 429,854 $ 679,905 110 (Continued) City of Seal Beach Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2020 Revenues: Taxes Intergovernmental Charges for services Use of money and property Contributions Total revenues Expenditures: Current: General government Public safety Community development Public works Debt service: Principal Interest and fiscal charges Total expenditures Revenues over (under) expenditures Other Financing Sources (Uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund Balance: Beginning of Year End of Year Special Revenue Debt Service Total Other CARES Citywide City Debt Governmental Act Grants Service Funds $ - $ - $ - $ 1,857,185 - 238,284 - 1,169,898 - - - 121,607 1,342 - 7,719 118,264 - - - 40,000 1,342 238,284 7,719 3,306,954 - - - 89,199 - - - 460,937 - - - 381,029 - - - 234,685 - - 420,000 420,000 - - 71,171 71,171 - - 491,171 1,657,021 1,342 238,284 (483,452) 1,649,933 - - 490,909 563,572 (512,600) (247,919) (14,645) (2,004,105) (512,600) (247,919) 476,264 (1,440,533) (511,258) (9,635) (7,188) 209,400 - 278,156 654,454 4,668,465 $ (511,258) $ 268,521 $ 647,266 $ 4,877,865 (Concluded) 111 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Taxes Expenditures: Current: Public works Revenues over (under) expenditures Other Financing Sources: Transfers in Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 141,700 $ 141,700 $ 140,163 $ (1,537) 206,400 206,400 199,431 6,969 (64,700) (64,700) (59,268) 5,432 64,700 64,700 59,268 (5,432) 112 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Supplemental Law Enforcement Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Intergovernmental Use of money and property Total revenues Expenditures: Current: Public safety Revenues over expenditures Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 140,000 $ 140,000 $ 161,856 $ 21,856 700 700 4,492 3,792 140,700 140,700 166,348 25,648 121,200 121,600 109,567 12,033 19,500 19,100 56,781 37,681 $ 19,500 $ 19,100 113 56,781 $ 37,681 127,605 $ 184,386 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Detention Center Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Charges for services Use of money or property Total revenues Expenditures: Current: Public safety Revenues over (under) expenditures Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 500 $ 500 $ 4,981 $ 4,481 10,000 10,000 17,943 7,943 10,500 10,500 22,924 12,424 20,000 20,000 13,996 6,004 (9,500) (9,500) $ (9,500) $ (9,500) 114 8,928 18,428 8,928 $ 18,428 19,166 $ 28,094 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Police Asset Forfeiture Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Intergovernmental Use of money and property Total revenues Expenditures: Current: Public safety Revenues over (under) expenditures Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 258,000 $ 258,000 $ 342,567 $ 84,567 1,100 1,100 2,287 1,187 259,100 259,100 344,854 85,754 265,000 266,500 236,684 29,816 (5,900) (7,400) $ (5,900) $ (7,400) 115 108,170 115,570 108,170 $ 115,570 (44,818) $ 63,352 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Air Quality Improvement Special Revenue Fund For the Year Ended June 30, 2020 Fund Balance: Beginning of Year 8,753 End of Year $ 7,867 116 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 30,000 $ 30,000 $ 31,650 $ 1,650 Use of money and property - - 76 76 Total revenues 30,000 30,000 31,726 1,726 Expenditures: Current: Public works 31,200 31,200 32,612 (1,412) Revenues over (under) expenditures (1,200) (1,200) (886) 314 Net change in fund balance $ (1,200) $ (1,200) (886) $ 314 Fund Balance: Beginning of Year 8,753 End of Year $ 7,867 116 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Impact AB 1600 Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Use of money and property Other Financing Sources: Transfers in Total other financing sources Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 2,000 $ 2,000 $ 3,952 $ 1,952 13,395 13,395 - - 13,395 13,395 $ 2,000 $ 2,000 17,347 $ 15,347 117 168,413 $ 185,760 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Gasoline Tax Special Revenue Fund For the Year Ended June 30, 2020 Expenditures: Current: Public works 1,800 1,800 2,642 (842) Revenues over (under) expenditures 692,500 692,500 651,038 (41,462) Other Financing Uses: Transfers out (645,000) (645,000) (321,152) 323,848 Net change in fund balance $ 47,500 $ 47,500 329,886 $ 282,386 Fund Balance: Beginning of Year 700,640 End of Year $ 1,030,526 118 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 689,300 $ 689,300 $ 632,469 $ (56,831) Use of money and property 5,000 5,000 21,211 16,211 Total revenues 694,300 694,300 653,680 (40,620) Expenditures: Current: Public works 1,800 1,800 2,642 (842) Revenues over (under) expenditures 692,500 692,500 651,038 (41,462) Other Financing Uses: Transfers out (645,000) (645,000) (321,152) 323,848 Net change in fund balance $ 47,500 $ 47,500 329,886 $ 282,386 Fund Balance: Beginning of Year 700,640 End of Year $ 1,030,526 118 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M2 Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Taxes Intergovernmental Use of money and property Total revenues Other Financing Sources: Transfers out Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 380,000 $ 380,000 $ 430,790 $ 50,790 4,000 4,000 - (4,000) 10,000 10,000 23,166 13,166 394,000 394,000 453,956 59,956 (1,588,000) (1,588,000) (676,998) 911,002 $ (1,194,000) $ (1,194,000) 119 (223,042) 1,292,461 $ 1,069,419 $ 970,958 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Intergovernmental Expenditures: Current: Community development Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 180,000 $ 180,000 $ 180,000 $ - 180,000 180,000 180,000 120 10,241 $ 10,241 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Police Grants Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Intergovernmental Expenditures: Current: Public safety Revenues over expenditures Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 233,000 $ 234,100 $ 185,541 $ (48,559) 232,300 233,400 100,690 132,710 700 700 84,851 84,151 $ 700 $ 700 84,851 $ 84,151 121 (106,710) $ (21,859) City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Landscape District Special Revenue Fund For the Year Ended June 30, 2020 Revenues: Taxes Use of money and property Total revenues Expenditures: Current: Community development Revenues over expenditures Other Financing Uses: Transfers out Net change in fund balance Fund Balance: Beginning of Year End of Year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 166,700 $ 166,700 $ 180,918 $ 14,218 2,000 2,000 12,167 10,167 168,700 168,700 193,085 24,385 113,200 113,200 109,808 3,392 55,500 55,500 83,277 27,777 (13,000) (13,000) (13,000) - $ 42,500 $ 42,500 70,277 $ 27,777 122 510,680 $ 580,957 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Heron Pointe Special Revenue Fund For the Year Ended June 30, 2020 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenue: Contributions $ 15,000 $ 15,000 $ 15,000 $ - Expenditures: Current: Community development 8,100 8,100 9,606 (1,506) Revenues over (under) expenditures 6,900 6,900 5,394 (1,506) Other Financing Uses: Transfers out (11,000) (11,000) (11,000) - Net change in fund balance $ (4,100) $ (4,100) (5,606) $ (1,506) Fund Balance: Beginning of Year 66,070 End of Year $ 60,464 123 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Pacific Gateway Special Revenue Fund For the Year Ended June 30, 2020 Expenditures: Current: Community development 95,700 95,700 81,615 14,085 Revenues over (under) expenditures (12,700) (12,700) 17,016 29,716 Other Financing Uses: Transfers out (26,000) (26,000) (26,000) - Net change in fund balance $ (38,700) $ (38,700) (8,984) $ 29,716 Fund Balance: Beginning of Year 131,487 End of Year $ 122,503 124 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 58,000 $ 58,000 $ 73,631 $ 15,631 Contributions 25,000 25,000 25,000 - Total revenues 83,000 83,000 98,631 15,631 Expenditures: Current: Community development 95,700 95,700 81,615 14,085 Revenues over (under) expenditures (12,700) (12,700) 17,016 29,716 Other Financing Uses: Transfers out (26,000) (26,000) (26,000) - Net change in fund balance $ (38,700) $ (38,700) (8,984) $ 29,716 Fund Balance: Beginning of Year 131,487 End of Year $ 122,503 124 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Seal Beach Cable Special Revenue Fund For the Year Ended June 30, 2020 125 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services $ 100,000 $ 100,000 $ 116,626 $ 16,626 Use of money and property 4,000 4,000 8,490 4,490 Total revenues 104,000 104,000 125,116 21,116 Expenditures: Current: General government 84,500 84,500 89,199 (4,699) Revenues over (under) expenditures 19,500 19,500 35,917 16,417 Other Financing Uses: Transfers out (30,000) (30,000) - 30,000 Net change in fund balance $ (10,500) $ (10,500) 35,917 $ 46,417 Fund Balance: Beginning of Year 393,937 End of Year $ 429,854 125 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SB1 Program Special Revenue Fund For the Year Ended June 30, 2020 Fund Balance: Beginning of Year 440,953 End of Year $ 679,905 126 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 413,300 $ 413,300 $ 399,214 $ (14,086) Use of money and property 1,500 1,500 14,712 13,212 Total revenues 414,800 414,800 413,926 (874) Other Financing Uses: Transfers out (550,000) (550,000) (174,974) 375,026 Net change in fund balance $ (135,200) $ (135,200) 238,952 $ 374,152 Fund Balance: Beginning of Year 440,953 End of Year $ 679,905 126 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Citywide Grants Special Revenue Fund For the Year Ended June 30, 2020 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 925,000 $ 925,000 $ 238,284 $ (686,716) Other Financing Uses: Transfers out (925,000) (925,000) (247,919) 677,081 Net change in fund balance $ - $ - (9,635) $ (9,635) Fund Balance: Beginning of Year 278,156 End of Year $ 268,521 127 City of Seal Beach Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual City Debt Service Fund For the Year Ended June 30, 2020 Revenues: Use of money and property Expenditures: Debt service: Principal retirement Interest and fiscal charges Total Expenditures Revenues over (under) expenditures Other Financing Sources: Transfers in Transfers out Total other financing sources Net change in fund balance Fund Balance: Beginning of Year End of Year Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ 7,719 $ 7,719 420,000 420,000 420,000 - 74,200 74,200 71,171 3,029 494,200 494,200 491,171 3,029 (494,200) (494,200) (483,452) 10,748 494,200 494,200 490,909 (3,291) - - (14,645) (14,645) 494,200 494,200 476,264 (17,936) $ - $ - (7,188) $ (7,188) 128 654,454 $ 647,266 AGENCY FUNDS FINANCIAL STATEMENTS 129 This page intentionally left blank. 130 City of Seal Beach Combining Statement of Assets and Liabilities Agency Funds June 30, 2020 131 Community Community Facilities Facilities District District - Heron Deposits Heron Pointe Pacific Gateway Total Assets: Cash and investments $ 225,737 $ 114,150 $ 183,805 $ 523,692 Restricted assets: Cash and investments with fiscal agents - 260,014 710,417 970,431 Accounts receivables 35,958 - 1,887 37,845 Total Assets $ 261,695 $ 374,164 $ 896,109 $ 1,531,968 Liabilities: Deposits payable $ 261,695 $ - $ - $ 261,695 Due to bondholders - 374,164 896,109 1,270,273 Total Liabilities $ 261,695 $ 374,164 $ 896,109 $ 1,531,968 131 City of Seal Beach Combining Statement of Changes in Assets and Liabilities Agency Funds For the Year Ended June 30, 2020 Deposits Assets: Cash and investments Accounts receivable Total Assets Liabilities: Deposits payable Total Liabilities Community Facilities District Heron Pointe Assets: Cash and investments Restricted assets: Cash and investments with fiscal agents Accounts receivables Total Assets Liabilities: Due to bondholders Total Liabilities Community Facilities District Pacific Gateway Assets: Cash and investments Restricted assets: Cash and investments with fiscal agents Accounts receivable Total Assets Liabilities: Due to bondholders Total Liabilities Balance July 1, 2019 Additions Deletions Balance June 30, 2020 $ 77,062 $ 383,040 $ (234,365) $ 225,737 - 38,292 (2,334) 35,958 $ 77,062 $ 421,332 $ (236,699) $ 261,695 $ 77,062 $ 421,332 $ (236,699) $ 261,695 $ 77,062 $ 421,332 $ (236,699) $ 261,695 $ 99,169 $ 274,341 $ (259,360) $ 114,150 259,330 3,830 (3,146) 260,014 5,051 - (5,051) - $ 363,550 $ 278,171 $ (267,557) $ 374,164 $ 363,550 $ 278,171 $ (267,557) $ 374,164 $ 363,550 $ 278,171 $ (267,557) $ 374,164 $ 171,407 $ 525,070 $ (512,672) $ 183,805 706,061 10,409 (6,053) 710,417 - 1,887 - 1,887 $ 877,468 $ 537,366 $ (518,725) $ 896,109 $ 877,468 $ 537,366 $ (518,725) $ 896,109 $ 877,468 $ 537,366 $ (518,725) $ 896,109 132 City of Seal Beach Combining Statement of Changes in Assets and Liabilities (Continued) Agency Fund For the Year Ended June 30, 2020 Total Assets: Cash and investments Restricted assets: Cash and investments with fiscal agents Accounts receivables Total Assets Liabilities: Deposits payable Due to bondholders Total Liabilities Balance July 1, 2019 Additions Deletions Balance June 30, 2020 $ 347,638 $ 1,182,451 $ (1,006,397) $ 523,692 965,391 14,239 (9,199) 970,431 5,051 40,179 (7,385) 37,845 $ 1,318,080 $ 1,236,869 $ (1,022,981) $ 1,531,968 $ 77,062 $ 421,332 $ (236,699) $ 261,695 1,241,018 815,537 (786,282) 1,270,273 $ 1,318,080 $ 1,236,869 $ (1,022,981) $ 1,531,968 133 This page intentionally left blank. 134 STATISTICAL SECTION 135 This page intentionally left blank. 136 City of Seal Beach Statistical Section Description of Statistical Section Contents For the Year Ended June 30, 2020 This part of the City of Seal Beach comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Page Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 138-143 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate it's property and sales taxes. 144-147 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 148-158 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. 159- 160 Operating Information These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. 161-164 137 City of Seal Beach Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Source: Finance Department, City of Seal Beach. 138 Fiscal Year 2011 2012 2013 2014 2015 Governmental activities: Net investment in capital assets, $ 68,117,517 $ 70,801,667 $ 73,693,829 $ 72,498,068 $ 74,296,935 Restricted 5,179,337 2,662,285 3,271,671 4,426,990 3,842,792 Unrestricted 27,557,417 29,666,427 23,570,750 25,953,129 4,097,282 Total governmental activities net position $ 100,854,271 $ 103,130,379 $ 100,536,250 $ 102,878,187 $ 82,237,009 Business -type activities: Net investment in capital assets, $ 29,552,934 $ 32,020,831 $ 32,645,747 $ 32,360,440 $ 34,451,074 Restricted - - - - Unrestricted 13,633,764 11,318,443 12,593,950 15,532,304 12,470,553 Total business -type activities net position $ 43,186,698 $ 43,339,274 $ 45,239,697 $ 47,892,744 $ 46,921,627 Primary government: Net investment in capital assets, $ 97,670,451 $ 102,822,498 $ 106,339,576 $ 104,858,508 $ 108,748,009 Restricted 5,179,337 2,662,285 3,271,671 4,426,990 3,842,792 Unrestricted 41,191,181 40,984,870 36,164,700 41,485,433 16,567,835 Total primary government net position $ 144,040,969 $ 146,469,653 $ 145,775,947 $ 150,770,931 $ 129,158,636 Source: Finance Department, City of Seal Beach. 138 City of Seal Beach Net Position by Component (Continued) Last Ten Fiscal Years (accrual basis of accounting) Source: Finance Department, City of Seal Beach. 139 Fiscal Year 2017 2016 (As Restated) 2018 2019 2020 Governmental activities: Net investment in capital assets, $ 73,939,948 $ 72,399,752 $ 72,667,466 $ 87,071,592 $ 84,530,565 Restricted 3,866,679 4,587,081 4,207,675 4,825,412 7,601,451 Unrestricted 4,713,193 (3,660,561) (4,911,027) (9,873,029) (11,716,752) Total governmental activities net position $ 82,519,820 $ 73,326,272 $ 71,964,114 $ 82,023,975 $ 80,415,264 Business -type activities: Net investment in capital assets, $ 34,145,069 $ 33,109,258 $ 31,663,486 $ 32,937,448 $ 31,473,936 Restricted - - 25,082 25,082 25,082 Unrestricted 13,544,158 12,625,701 14,709,960 13,656,457 13,930,796 Total business -type activities net position $ 47,689,227 $ 45,734,959 $ 46,398,528 $ 46,618,987 $ 45,429,814 Primary government: Net investment in capital assets, $ 108,085,017 $ 105,509,010 $ 104,330,952 $ 120,009,040 $ 116,004,501 Restricted 3,866,679 4,587,081 4,232,757 4,850,494 7,626,533 Unrestricted 18,257,351 8,965,140 9,798,933 3,783,428 2,214,044 Total primary government net position $ 130,209,047 $ 119,061,231 $ 118,362,642 $ 128,642,962 $ 125,845,078 Source: Finance Department, City of Seal Beach. 139 Expenses: Governmental activities: General government Public safety Community development Community services Public works Interest on long-term debt Total governmental activities expenses Business -type activities: Water utility Sewer utility Total business -type activities expenses Total primary government expenses Program revenues: Governmental activities: Charges for services: General government Public safety Community development Community services Public works Operating contributions and grants Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Water utility Sewer utility Total business -type activities program revenues Total primary government program revenues Net revenues (expenses): Governmental activities Business -type activities Total net revenues (expenses) Source: Finance Department, City of Seal Beach. City of Seal Beach Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 2015 $ 8,135,200 $ 6,477,795 $ 5,373,180 $ 5,040,070 $ 69551,584 13,493,413 14,152,774 15,005,590 15,999,900 16,022,465 1,654,009 19372,334 19781,188 19306,898 19393,712 1,040,723 9409754 1,272,680 19079,006 1,129,300 69304,343 69577,233 6,212,516 69902,521 7,862,892 1,012,516 6939065 5749763 4879221 4449132 31,640,204 30,213,955 30,219,917 30,815,616 33,404,085 4,005,747 49165,575 49267,840 49439,797 49037,798 1,412,326 19402,249 19520,478 19730,940 19661,225 5,418,073 59567,824 59788,318 69170,737 59699,023 37,058,277 35,781,779 36,008,235 36,986,353 39,103,108 1,770,024 1,462,840 450,911 1,632,975 1,820,019 1,515,727 1,667,184 1,565,527 1,384,701 2,132,176 92,131 130,118 111,008 182,021 186,858 815,779 930,501 981,440 1,062,796 1,020,316 1,738,965 1,869,575 1,980,116 1,962,242 1,937,305 1,775,825 5,890,556 5,837,093 2,402,490 2,768,435 23,967 44,405 - 10,000 20,000 7,732,418 11,995,179 10,926,095 8,637,225 9,885,109 4,190,824 4,376,906 4,924,109 5,092,152 4,556,001 2,212,559 2,442,608 2,675,201 2,775,332 2,765,357 6,403,383 6,819,514 7,599,310 7,867,484 7,321,358 14,135,801 18,814,693 18,525,405 16,504,709 17,206,467 (23,907,786) (18,218,776) (19,293,822) (22,178,391) (23,518,976) 985,310 1,251,690 1,810,992 1,696,747 1,622,335 $ (22,922,476) $ (16,967,086) $ (17,482,830) $ (20,481,644) $ (21,896,641) 140 City of Seal Beach Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 2015 General revenues and other changes in net position: Governmental activities: Taxes: Property taxes $ 10,794,375 $ 10,337,486 $ 9,958,198 $ 9,498,277 $ 10,050,815 Transient occupancy taxes 1,221,491 970,275 1,289,007 1,509,095 1,525,723 Sales tax 4,160,359 4,930,037 5,408,756 4,742,859 4,246,080 Franchise taxes 1,030,736 1,008,031 1,126,398 1,324,860 1,163,595 Utility users taxes 5,310,666 5,484,256 4,732,597 4,644,218 4,646,434 Othertaxes 228,449 338,176 328,743 555,804 344,789 Motor vehicle in lieu, unrestricted 119,022 12,868 13,333 11,035 10,659 Use of money and property 735,082 714,342 372,693 674,875 725,720 Other 312,316 230,997 331,175 544,406 356,749 Transfers - - - 378,500 378,500 Extraordinary Gain(loss) - (3,531,584) - - 694,585 Total governmental activities 23,912,496 20,494,884 23,560,900 23,883,929 24,143,649 Business -type activities: Use of money and property 109,160 96,774 84,371 133,995 109,575 Other 5,469 4,112 5,060 805 3,698 Transfers - - - (378,500) (378,500) Extraordinary Gain(loss) - (1,200,000) - 1,200,000 - Total business -type activities 114,629 (1,099,114) 89,431 956,300 (265,227) Total primary government 24,027,125 19,395,770 23,650,331 24,840,229 23,878,422 Changes in net position: Governmental activities 4,710 2,276,108 4,267,078 1,705,538 624,673 Business -type activities 1,099,939 152,576 1,900,423 2,653,047 1,357,108 Total primary government $ 1,104,649 $ 2,428,684 $ 6,167,501 $ 4,358,585 $ 1,981,781 Source: Finance Department, City of Seal Beach. 141 City of Seal Beach Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) Expenses: Governmental activities: General government Public safety Community development Community services Public works Interest on long-term debt Total governmental activities expenses Business -type activities: Water utility Sewer utility Total business -type activities expenses Total primary government expenses Program revenues: Governmental activities: Charges for services: General government Public safety Community development Community services Public works Operating contributions and grants Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Water utility Sewer utility Total business -type activities program revenues Total primary government program revenues Net revenues (expenses): Governmental activities Business -type activities Total net revenues (expenses) Source: Finance Department, City of Seal Beach. Fiscal Year 2016 2017 2018 2019 2020 $ 6,264,368 $ 5,894,947 $ 6,161,230 $ 6,479,347 $ 7,007,436 16,972,880 19,867,060 19,877,068 21,497,362 24,017,239 1,100,110 1,218,902 1,593,008 1,499,652 1,576,854 1,036,627 995,468 964,634 945,425 866,786 6,956,443 6,992,604 7,367,882 7,752,351 10,748,166 349,652 342,951 225,675 143,040 88,274 32,680,080 35,311,932 36,189,497 38,317,177 44,304,755 4,102,228 4,977,160 4,668,618 4,909,193 5,444,831 1,676,651 2,639,043 2,539,783 2,523,366 3,035,443 5,778,879 7,616,203 7,208,401 7,432,559 8,480,274 38,458,959 42,928,135 43,397,898 45,749,736 52,785,029 2,074,448 1,913,909 2,062,987 1,913,201 1,207,956 1,521,220 2,045,589 1,903,530 1,907,577 2,124,798 192,878 217,486 300,640 597,318 231,087 1,015,517 707,813 733,456 840,428 700,877 1,832,289 2,105,747 2,398,039 2,556,857 2,754,304 2,122,139 1,721,167 2,334,480 2,588,454 3,457,197 10,000 174,685 79,175 9,777,900 30,707 8,768,491 8,886,396 9,812,307 20,181,735 10,506,926 4,261,566 4,782,468 5,097,807 4,851,274 4,268,610 2,466,869 2,784,942 2,928,885 2,854,208 3,007,958 6,728,435 7,567,410 8,026,692 7,705,482 7,276,568 15,496,926 16,453,806 17,838,999 27,887,217 17,783,494 (23,911,589) (26,425,536) (26,377,190) (18,135,442) (33,797,829) 949,556 (48,793) 818,291 272,923 (1,203,706) $ (22,962,033) $ (26,474,329) $ (25,558,899) $ (17,862,519) $ (35,001,535) 142 City of Seal Beach Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) General revenues and other changes in net position: Governmental activities: Taxes: Property taxes $ Transient occupancy taxes Sales tax Franchise taxes Utility users taxes Othertaxes Motor vehicle in lieu, unrestricted Use of money and property Other Transfers Extraordinary Gain(loss) Fiscal Year �m 11) 1 '7 IM Q Ini o �mn 10,408,505 $ 11,012,246 $ 11,180,197 $ 11,481,535 $ 12,358,059 1,655,376 1,693,515 1,666,996 1,631,445 1,298,707 4,228,730 4,379,341 4,303,618 5,546,264 9,108,334 955,922 1,016,938 1,059,581 1,097,774 1,034,280 4,445,180 4,177,713 4,186,554 4,061,031 3,941,877 197,166 190,510 163,277 227,978 724,854 9,960 11,235 13,102 12,473 21,133 1,004,572 425,014 300,817 1,692,720 1,862,213 536,175 214,219 1,762,390 2,065,583 1,463,177 378,500 378,500 378,500 378,500 376,483 Total governmental activities 23,820,086 23,499,231 25,015,032 28,195,303 32,189,117 Business -type activities: Use of money and property 176,437 167,661 223,778 326,036 391,016 Other 20,107 - - - - Transfers (378,500) (378,500) (378,500) (378,500) (376,483) Extraordinary Gain(loss) - - - - - Total business -type activities (181,956) (210,839) (154,722) (52,464) 14,533 Total primary government 23,638,130 23,288,392 24,860,310 28,142,839 32,203,650 Changes in net position: Governmental activities (91,503) 23,499,231 25,015,032 10,059,861 (1,608,712) Business -type activities 767,600 (210,839) (154,722) 220,459 (1,189,173) Total primary government $ 676,097 $ 23,288,392 $ 24,860,310 $ 10,280,320 $ (2,797,885) Source: Finance Department, City of Seal Beach. 143 General Fund: Nonspendable Restricted Committed Assigned Unassigned Total general fund All Other government funds: Nonspendable Restricted Assigned Unassigned Total all Other government funds City of Seal Beach Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 2015 $ 100 $ - $ - $ 1,549,735 $ 666,102 9,371,679 9,106,458 8,301,699 8,227,258 7,623,994 16,952,806 19,263,118 21,149,350 22,314,838 21,711,517 $ 26,324,585 $ 28,369,576 $ 29,451,049 $ 32,091,831 $ 30,001,613 $ 1,957,603 $ - $ - $ - $ - 5,179,337 2,662,285 3,271,671 4,426,990 3,842,792 2,825,953 87,375 89,004 71,993 - (134,079) (470,485) (56,810) (368,629) (525,408) $ 9,828,814 $ 2,279,175 $ 3,303,865 $ 4,130,354 $ 3,317,384 Source: Finance Department, City of Seal Beach 144 General Fund: Nonspendable Restricted Committed Assigned Unassigned Total general fund All Other government funds: Nonspendable Restricted Assigned Unassigned Total all Other government funds City of Seal Beach Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 $ 682,859 $ 2,877 $ 32,495 $ 33,795 $ 41,776 - 12,277 5,266 5,419 2,190,469 - - - - 17,067,216 7,610,286 7,478,281 8,289,150 10,152,504 4,370,059 20,811,037 19,770,202 17,491,623 11,922,370 3,509,871 $ 29,1042182 $ 27,263,637 $ 25,818,534 $ 22,114,088 $ 27,179,391 3,866,679 4,131,203 4,110,558 4,819,993 5,410,982 (51,254) (184,908) (34,159) (425,639) (671,694) $ 3,815,425 $ 3,946,295 $ 4,076,399 $ 4,394,354 $ 4,739,288 Source: Finance Department, City of Seal Beach 145 City of Seal Beach Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions from other governments Miscellaneous Total revenues Expenditures Current: General government Public safety Community development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Bond issuance costs Total expenditures Excess (deficiency) of revenue over (under) expenditures Other financing sources (uses): Transfers in Transfers out Debt issuance Proceeds on sale of assets Total other financing sources (uses) Extraordinary gain/(loss) on dissolution of redevelopment agency Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year IM )(W) Im1 Inc $ 23,624,925 $ 24,165,883 $ 23,831,431 $ 23,476,034 $ 23,114,876 1,179,759 926,761 1,247,750 1,369,275 1,377,131 949,294 5,058,175 3,002,321 869,294 1,725,127 3,769,165 4,044,566 4,117,034 3,895,371 3,961,691 735,082 714,342 372,693 674,875 725,720 983,702 1,085,291 1,063,172 1,013,695 1,146,509 - - 10,209 341,698 330,885 312,316 234,597 301,771 579,125 375,588 31,554,243 36,229,615 33,946,381 32,219,367 32,757,527 7,211,870 5,169,799 5,062,467 4,493,594 5,462,668 139297,057 13,948,663 149460,833 15,439,757 159811,773 1,6499921 1,353,068 1,420,065 1,298,071 1,362,308 965,222 880,983 1,182,716 1,048,427 1,129,497 4,059,001 4,047,013 4,156,616 4,871,887 5,631,015 6,6229692 5,530,575 3,316,684 2,094,120 4,578,308 2,0669373 2,195,014 1,734,446 1,265,135 1,337,573 1,027,743 790,581 562,184 492,935 441,040 36,899,879 33,915,696 31,896,011 31,0039926 35,754,182 (5,345,636) 2,313,919 2,050,370 1,215,441 (2,996,655) 9,370,333 8,209,025 5,825,432 4,363,955 7,012,848 (9,370,333) (8,209,025) (6,135,432) (4,295,455) (6,919,381) - - - 1,546,931 - 18,614 - - - - 18,614 - (310,000) 1,615,431 93,467 - (7,818,567) - - - $ (5,327,022) $ (5,504,648) $ 1,740,370 $ 2,830,872 $ (2,903,188) 10.2% 10.5% 8.0% 6.1% 5.7% Note: On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1, 2012. Source: Finance Department, City of Seal Beach 146 City of Seal Beach Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (modified accrual basis of accounting) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Contributions from other governments Miscellaneous Total revenues Expenditures Current: General government Public safety Community development Community services Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Bond issuance costs Excess (deficiency) of revenue over (under) expenditures Other financing sources (uses): Transfers in Transfers out Debt issuance Proceeds on sale of assets Total other financing sources (uses) Extraordinary gain/(loss) on dissolution of redevelopment agency Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year �m 1m "7 Ini Q 1m o �mn $ 22,828,144 $ 23,368,371 $ 24,021,668 $ 25,903,080 $ 27,481,580 1,304,924 1,234,590 1,480,971 1,416,737 844,274 1,388,056 744,904 1,530,815 857,923 4,330,159 4,214,690 5,349,083 4,586,949 4,878,405 4,684,076 1,004,572 426,418 347,117 1,772,775 2,003,529 1,110,606 152,845 1,089,515 946,048 1,239,154 283,222 180,511 55,765 45,994 60,942 537,777 492,245 520,420 2,319,864 2,995,022 32,671,991 31,948,967 33,633,220 38,140,826 43,638,736 5,351,130 5,673,309 5,757,859 6,169,490 6,083,705 16,378,416 17,395,965 18,148,871 19,240,608 20,921,107 1,175,339 1,186,081 1,488,921 1,446,025 1,408,699 1,075,282 1,004,690 954,018 942,804 852,664 4,862,058 4,586,373 4,967,066 5,160,373 6,672,230 2,645,823 1,506,476 2,567,080 7,378,774 1,729,166 1,490,150 2,162,379 1,640,521 1,754,905 494,370 355,819 353,322 231,779 152,863 88,612 33,334,017 33,868,595 35,756,115 42,245,842 38,250,553 (662,026) (1,919,628) (2,122,895) (4,105,016) 5,388,183 5,602,944 4,472,129 5,714,614 9,381,712 4,141,526 (5,340,308) (4,262,176) (4,906,717) (8,663,187) (4,119,472) 209,953 22,054 262,636 807,897 718,525 $ (399,390) $ (1,709,675) $ (1,314,998) $ (3,386,491) $ 5,410,237 6.0% 7.8% 5.6% 5.5% 1.6% 147 Fiscal Year Ended June 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 City of Seal Beach Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years city Taxable Assessed Secured Unsecured Value $ 4,114,053,573 4,219,133,372 4,304,310,243 4,408,299,607 4,706,609,532 4,794,299,125 4,978,010,106 5,233,421,188 5,475,549,249 5,817,397,419 $167,978,268 215,211,254 176,246,398 172,172,784 184,449,987 287,392,225 189,618,406 194,765,328 150,370,464 163,933,178 $ 4,282,031,841 4,434,344,626 4,480,556,641 4,580,472,391 4,891,059,519 5,081,691,350 5,167,628,512 5,428,186,516 5,625,919,713 5,981,330,597 1 Beginning with the fiscal year ended June 30, 2003, exemptions are netted directly against the individual property categories. NOTE: Redevelopment Agency Taxable Assessed o__...._a 17-1— $408,349,567 ..i.._ $408,349,567 410,499,845 424,660,008 453,448,325 556,548,983 530,597,248 300,533,393 309,374,617 320,174,015 363,940,344 Unsecured $10,330,287 6,813,130 7,294,003 8,270,821 3,863,246 32,693,247 2,090,757 2,150,646 2,103,366 3,281,367 $ 418,679,854 417,312,975 431,954,011 461,719,146 560,412,229 563,290,495 302,624,150 311,525,263 322,277,381 367,221,711 Total Direct Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re -assessed at the time it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: County of Orange, Auditor - Controller Assessed Valuations Detail 148 City of Seal Beach Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Fiscal Year NOTE: In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of the School District bonds. Source: County of Orange, Auditor -Controller's Office 149 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 City Direct Rates: City Direct Rate 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping Rates: Orange County Bonds 0.01750 0.01754 0.01881 0.03015 0.03015 0.03092 0.03092 0.03116 0.03052 0.03100 Metropolitan Water District 0.03347 0.00370 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Other Districts 0.00370 0.03603 0.04124 0.04830 0.04821 0.05219 0.05219 0.04833 0.04921 0.07990 Total Direct Rate 1.04098 1.05467 1.05727 1.06355 1.08195 1.08661 1.08661 1.08299 1.08323 1.11440 NOTE: In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of the School District bonds. Source: County of Orange, Auditor -Controller's Office 149 Taxpayer Seal Beach Mutual Western National Life Insurance Company CPT Shops at Rossmoor LLC Boeing North American ASN Long Beach LLC Terra Funding -Bixby Ranch LLC Rossmoor Shops LLC Al United States Seal Beach Senior Housing Ranch Town Center LLC OXY Long Beach Inc Hellman Properties Shea Homes LP Columbia Regency Retail Partners LLC Old Ranch Country Club LLC City of Seal Beach Principal Property Taxpayers Current Year and Nine Years Ago 2020 2011 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Value Value Value $ 1,037,239,905 17.35% $ 622,715,127 14.55% $ 129,741,780 3.03% 129,104,144 2.16% 127,326,423 2.13% 124,055,687 2.90% 124,533,254 2.08% 60,000,000 1.40% 94,146,189 1.58% 52,288,966 1.22% 51,788,000 0.87% 45,638,842 1.07% 47,779,093 0.80% 41,179,587 0.96% 46,091,124 0.77% 118,396,375 2.77% 33,928,466 0.79% 37,362,600 0.63% 28,790,112 0.48% 26,676,532 0.62% $ 1,724,160,844 28.85% $ 1,254,621,362 29.31% The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Source: HDL Coren & Cone 150 City of Seal Beach Property Tax Levies and Collections Last Ten Fiscal Years NOTE: Total Collections to Date Percent Collected within the of Levy Fiscal Taxes Levied Fiscal Year of Levy Collections in Year Ended for the 9,343,208 Percent Subsequent June 30 Fiscal Year Amount of Levy Years 2011 $ 8,385,415 $ 8,190,860 97.68% $ 178,283 2012 8,608,773 8,404,621 97.63% 125,019 2013 8,814,252 8,629,271 97.90% 118,645 2014 9,407,263 9,240,201 98.22% 103,007 2015 10,438,079 10,222,017 97.93% 73,362 2016 10,472,603 10,196,356 97.36% 81,860 2017 10,945,834 10,710,665 97.85% 65,706 2018 11,415,167 11,226,591 98.35% 66,149 2019 12,131,891 11,590,056 95.53% 60,234 2020 13,319,047 7,667,943 57.57% 62,614 NOTE: Total Collections to Date The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed -through to other agencies. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1, 2012. Source: Orange County Tax Ledger 151 Percent Amount of Levy $ 8,369,142 99.81% 8,529,640 99.08% 8,747,916 99.25% 9,343,208 99.32% 10,295,379 98.63% 10,278,216 98.14% 10,776,371 98.45% 11,292,740 98.93% 11,650,289 96.03% 7,730,557 58.04% The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed -through to other agencies. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1, 2012. Source: Orange County Tax Ledger 151 Fiscal Year Ended June 30 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 City of Seal Beach Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements In addition on December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1, 2012. The debt was transferred to the Successor Agency to the Seal Beach Redevelopment Agency. See the schedule of Demographic and Economic Statistics on page 155 for personal income and population data. *Data not readily available. Source: Finance Department, City of Seal Beach 152 Countrywide Tax Pension Fire Total Capital Financing Allocation Obligation Station Governmental Lease Authority Lease Bonds Bonds Bonds Climatec Activities $ 323,595 $ 120,000 $ 5,575,000 $ 8,311,000 $ 5,355,000 $ - $ 19,684,595 202,581 - - 7,227,000 4,935,000 - 12,364,581 70,135 - - 6,045,000 4,515,000 - 10,630,135 - - - 5,270,000 4,095,000 1,562,400 10,927,400 - - - 4,411,000 3,675,000 1,488,358 9,574,358 - - - 3,461,000 3,255,000 1,368,208 8,084,208 - - - 2,414,000 2,835,000 672,829 5,921,829 - - - 1,263,000 2,415,000 603,308 4,281,308 - - - - 1,995,000 531,403 2,526,403 - - - - 1,575,000 457,033 2,032,033 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements In addition on December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1, 2012. The debt was transferred to the Successor Agency to the Seal Beach Redevelopment Agency. See the schedule of Demographic and Economic Statistics on page 155 for personal income and population data. *Data not readily available. Source: Finance Department, City of Seal Beach 152 City of Seal Beach Ratios of Outstanding Debt by Type (Continued) Last Ten Fiscal Years Business -type Activities Sewer 2011 - - - - - - - - - - Economic Fiscal Year Development Sewer Ended Administration Certificates of June 30 Loan Participation 2011 $ 99,521 $ 2012 87,453 2013 74,780 2014 - 2015 - 2016 - 2017 - 2018 - 2019 - 2020 - Business -type Activities Sewer 2011 - - - - - - - - - - Sewer Total Installment State Revolving Business -type Agreement Agreement Activities $ 3,200,000 $ - $ 3,299,521 3,085,000 - 3,172,453 2,965,000 4,645,401 7,685,181 2,835,000 4,068,778 6,903,778 2,705,000 3,893,311 6,598,311 2,565,000 3,718,034 6,283,034 2,420,000 3,538,201 5,958,201 2,270,000 3,353,690 5,623,690 2,110,000 3,164,384 5,274,384 1,940,000 2,970,155 4,910,155 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements In addition on December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1, 2012. The debt was transferred to the Successor Agency to the Seal Beach Redevelopment Agency. See the schedule of Demographic and Economic Statistics on page 155 for personal income and population data. *Data not readily available. Source: Finance Department, City of Seal Beach 153 Total Primary Government $ 24,184,116 16,737,034 19,515,316 19,031,178 17,125,013 15,081,352 5,958,201 9,904,998 7,800,787 6,942,188 Percentage Debt of Personal Per Income 1 Capita' * 930 * 687 * 750 * 732 * 697 * 613 * 483 * 398 * 313 * 278 City of Seal Beach Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Fiscal Year Private Assessed Ended Placement Total June 30 Bonds Bonds Bonds 2011 $ 5,575,000 $ 13,666,000 $ 19,241,000 2012 - 12,162,000 12,162,000 2013 - 10,560,000 10,560,000 2014 - 9,365,000 9,365,000 2015 - 8,086,000 8,086,000 2016 - 6,716,000 6,716,000 2017 - 4,507,180 5,249,000 2018 - 2,937,013 2,937,013 2019 - 1,995,000 1,995,000 2020 - 1,575,000 1,575,000 Percent of Assessed Per Value 1 Capita 0.38% $ 790 0.24% 497 0.21% 406 0.19% 360 0.15% 329 0.12% 273 0.10% 213 0.05% 118 0.03% 80 0.02% 63 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). Assessed value has been used because the actual value of taxable property is not readily available in the State of California. Note: On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 that provides for the dissolution of all redevelopment agencies in the State of California. The Redevelopment Agency was dissolved on February 1, 2012. The debt was transferred to the Successor Agency to the Seal Beach Redevelopment Agency Source: Finance Department, City of Seal Beach 154 City of Seal Beach Schedule of Direct and Overlapping Debt June 30, 2020 2019-20 Assessed Valuation: $5,981,330,597 Orange County General Fund Obligations 0.956% Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable (1) 6/30/2020 Debt 6/30/20 Metropolitan Water District 0.193% $ 37,300,000 $ 71,989 Coast Community College District 2.916% 908,050,757 26,478,760 North Orange Jt. Community College District 1.185% 284,769,001 3,374,513 Los Alamitos Unified School District School Facilities Imp District No.1 49.420% 157,180,227 77,678,468 Huntington Beach Union High School District 0.001% 172,819,998 1,728 Ocean View School District 0.004% 38,855,000 1,554 City of Seal Beach Community Facilities District No. 2002-1 100.000% 2,955,000 2,955,000 City of Seal Beach Community Facilities District No. 2005-1 100.000% 7,575,000 7,575,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $118,137,012 OVERLAPPING GENERAL FUND DEBT: Orange County General Fund Obligations 0.956% $ 386,745,000 $ 3,697,282 Orange County Pension Obligations 0.956% 466,863,754 4,463,217 Orange County Board of Education Certificates of Participation 0.956% 12,930,000 123,611 North Orange County Regional Occupation Program Certificates of Participation 4.432% 8,950,000 396,664 Coast Community College District Certificates of Participation 2.916% 2,600,000 75,816 Los Alamitos Unified School District Certificates of Participation 54.506% 38,286,024 20,868,180 Huntington Beach Union High School District Certificates of Participation 0.001% 62,581,090 626 Ocean View School District General Fund Obligations 0.004% 19,595,000 784 City of Seal Beach Fire Station Lease Revenue Bonds 100% 1,575,000 1,575,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 31,201,180 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) TOTAL DIRECT DEBT TOTAL OVERLAPPING DEBT COMBINED TOTAL DEBT 100% $ 685,000 $ 685,000 (l) Percentage of overlapping agency's assessed valuation located within boundaries of the city. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations. Ratios to Adjusted Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.98% Total Direct Debt ($3,378,000) 0.03% Combined Total Debt 2.51% Ratios to Redevelopment Incremental Valuation ($320950178) Total Overlapping Tax Increment Debt Source: California Municipal Statistics, Inc. 155 0.19% $ 1,575,000 $148,448,192 $150,023,192 12) Debit limit Total net debt applicable to limit Legal debt margin Total debt applicable to the limit as a percentage of debt limit City of Seal Beach Legal Debt Margin Information Last Ten Years 2011 Fiscal Year 2012 2013 2014 2015 $ 705,106,754 $ 760,030,328 $ 736,876,598 $ 756,328,731 $ 817,720,762 $ 705,106,754 $ 760,030,328 $ 736,876,598 $ 756,328,731 $ 817,720,762 0.0% 0.0% 0.0% 0.0% 0.0% Note: 'Under state finance law, the City of Seal Beach's outstanding general obligation debt should not exceed 15 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. Source: Orange County Tax Assessor's Office 156 City of Seal Beach Legal Debt Margin Information (Continued) Last Ten Years Fiscal Year 2016 2017 2018 2019 2020 Debit limit $ 846,747,277 $ 820,537,899 $ 860,757,686 $ 8925030,484 $ 952,282,846 Total net debt applicable to limit - - - - - Legal debt margin $ 846,747,277 $ 820,537,899 $ 860,757,686 $ 8925030,484 $ 952,282,846 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% Legal Debt Margin Calculation for Fiscal Year 2020 Assessed Valuation $ 6,348,552,308 Debt percentage 15% Debt limit $ 952,282,846.20 Debt applicable to limit - Legal debt margin $ 952,282,846 Note: 'Under state finance law, the City of Seal Beach's outstanding general obligation debt should not exceed 15 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. Source: Orange County Tax Assessor's Office 157 City of Seal Beach Pledged -Revenue Coverage Last Ten Fiscal Years Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: Finance Department, City of Seal Beach 158 2000 Tax Allocation Refunding Bonds Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 2011 $ 1,784,964 $ 430,000 $ 296,183 2.46 2012 1,034,695 450,000 396,408 1.22 2013 1,790,960 470,000 330,684 2.24 2014 1,222,425 495,000 229,406 1.69 2015 1,084,135 515,000 204,269 1.51 2016 1,329,344 545,000 177,413 1.84 2017 1,218,363 575,000 148,759 1.68 2018 1,125,053 600,000 118,302 1.57 2019 1,198,637 635,000 86,013 1.66 2020 234,102 605,000 53,078 0.36 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: Finance Department, City of Seal Beach 158 Calendar Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sources: HDL Coren & Cone City of Seal Beach Demographic and Economic Statistics Last Ten Calendar Years Population 26,010 24,354 24,487 24,591 24,586 25,078 24,890 25,984 25,073 24,992 Personal Income (in thousands) 159 1,045,654 1,035,313 1,065,674 1,082,963 1,074,777 1,141,053 1,164,182 1,199,969 1,277,436 1,370,609 Per Capita Personal Income 40,202 42,511 43,520 44,039 43,715 45,500 46,773 46,181 50,948 54,841 Unemployment Rate 7.1% 6.4% 4.1% 3.7% 4.8% 3.9% 3.5% 3.2% 3.3% 3.2% City of Seal Beach Top 25 Sales Tax Producers Current Year and Nine Years Ago Business Business Name 2019-20 2010-11 Category 76 X X Service Stations AT&T Mobility X Electronics/Appliance Store Bacardi USA X Food Service Equip./Supplies Bed Bath & Beyond X Home Furnishings California Pizza Kitchen X X Casual Dining Chevron X X Service Stations Chevron & Auto Repair X X Service Stations Chick Fil A X Quick -Service Restaurants CVS Pharmacy X X Drug Stores Energy Tubulars X X Petroleum Prod/Equip Home Goods X X Home Furnishings In N Out Burgers X Quick -Service Restaurants Kohls X X Department Stores Leisure World Automotive 76 X Service Stations Marshalls X X Family Apparel Mobil X X Service Stations Old Ranch Country Club X X Leisure/Entertainment Original Parts Group X X Automotive Supply Stores Pavillions X X Grocery Stores Liquor Petsmart X Specialty Stores Ralphs X X Grocery Stores Liquor Roger Dunn Golf Shop X X Sporting Goods/Bike Stores Seal Beach Chevron X Service Stations Seal Beach Chevron X Service Stations Smog Pros X Service Stations Spaghettini X X Fine Dining Sprouts Farmers Market X Grocery Stores Beer/Wine Staples X Office Supplies/Furniture Target X X Discount Dept Stores Ulta Beauty X Specialty Stores United Pacific X Service Stations Walts Wharf X X Fine Dining 2019-20 Percent of Fiscal Year Total Paid by Top 25 Accounts = 57.81 % 2010-11 Percent of Fiscal Year Total Paid by Top 25 Accounts = 73.42% Firms Listed Alphabetically: Period July Thru March Source: Hinderliter, de Llamas & Associates, State Board of Equalization 160 City of Seal Beach Full-time and Part-time City Employees by Function Last Ten Fiscal Years Source: Finance Department, City of Seal Beach 161 Fiscal Year Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General government 14.52 13.83 10.97 10.56 14.64 14.34 15.92 13.00 13.48 13.48 Public safety 65.88 64.77 63.91 76.78 79.13 74.12 77.19 78.50 79.82 79.82 Public works 15.40 8.36 11.49 11.03 10.94 4.97 3.98 6.00 5.00 5.00 Community development 10.18 8.80 10.60 12.01 18.16 17.25 16.53 13.60 14.76 14.76 Water 12.68 12.48 12.29 12.60 13.80 13.82 12.60 12.90 13.15 13.15 Sewer 3.75 3.95 3.95 5.28 5.91 7.11 7.69 6.71 6.89 6.89 Total 122.41 112.19 113.21 128.26 142.58 131.61 133.91 130.71 133.10 133.10 Source: Finance Department, City of Seal Beach 161 Police: Arrests Parking citations issued Public works: Street centerline miles resurfaced Number of public right of way permits issued Number of street related service requests Parks and recreation: Number of recreation classes Number of facility rentals Water: Number of water meters replaced Acre feet of water used Sewer: Number of feet of sewer cleaned Number of catch basins cleaned Source: City of Seal Beach City of Seal Beach Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 834 705 819 758 798 17,377 18,528 18,451 18,931 21,043 3 2 2 1 2 141 127 96 140 151 124 121 134 35 45 457 456 2,156 678 781 308 562 3,182 1,763 2,633 158 112 128 85 57 3,498 3,534 3,818 3,878 3,540 184,047 203,584 245,986 253,099 253,099 350 417 417 401 434 162 City of Seal Beach Operating Indicators by Function (Continued) Last Ten Fiscal Years Source: City of Seal Beach 163 Fiscal Year 2016 2017 2018 2019 2020 Police: Arrests 790 781 854 787 709 Parking citations issued 19,264 18,319 19,929 17,663 20,913 Public works: Street centerline miles resurfaced 1 - 1 1 4 Number of public right of way permits issued 184 259 231 253 242 Number of street related service requests 40 68 109 92 44 Parks and recreation: Number of recreation classes 680 710 1,070 1,100 790 Number of facility rentals 557 585 1,030 1,045 690 Water: Number of water meters replaced 76 56 49 49 104 Acre feet of water used 3,208 3,259 3,208 3,360 3,276 Sewer: Number of feet of sewer cleaned 217,619 - 217,619 154,000 146,619 Number of catch basins cleaned 458 216 216 216 216 Source: City of Seal Beach 163 City of Seal Beach Capital Asset Statistics by Function Last Ten Fiscal Years Source: City of Seal Beach 164 Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Police: Stations 2 2 2 2 2 2 2 2 2 2 Patrol units 36 34 34 34 34 34 34 34 34 34 Public works: Streets (center line miles) 43 43 43 43 43 43 43 43 43 43 Sidewalk (miles) 86 86 86 86 86 86 86 86 86 86 Signalized intersections 23 23 23 23 23 23 23 23 23 23 Parks and recreation: Parks 10 10 10 10 10 10 10 10 10 10 Community centers 3 3 3 3 3 3 3 3 3 3 Water: Water pipe (miles) 72 72 72 72 72 72 72 72 72 72 Reservoirs 2 2 2 2 2 2 2 2 2 2 Sewer Sanitary sewers (miles) 37 37 37 37 37 37 37 37 37 37 Storm sewers (miles) 4 4 4 4 4 4 4 4 4 4 Sewer lift/pump stations 7 7 7 7 7 7 7 7 7 7 Source: City of Seal Beach 164 THE PUN GROUP ACCOUNTANTS & ADVISORS February 26, 2021 To the Honorable Mayor and Members of the City Council of the City of Seal Beach Seal Beach, California We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Seal Beach (the "City") for the year ended June 30, 2020. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 24, 2020. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Authority are described in Note 1 to the basic financial statements. The City implemented GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this Statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. As a result of implementing GASB Statement No. 95, no other new accounting policies were adopted and the application of existing policies was not changed during 2020. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were: • Management's estimate of the investment fair market value is based on information provided by US Bank for the City's investments based on institutional bond quotes or certificate of deposit pricing. We evaluated the key factors and assumptions used to develop the investment fair market value in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the depreciation on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole. • Management's estimate of the net other postemployment benefits ("OPEB") liability is based on the actuarial valuation on total OPEB liability and the financial statements on fiduciary net position of the OPEB plan. We evaluated the key factors and assumptions used to develop the net OPEB liability in determining that it is reasonable in relation to the financial statements taken as a whole. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850 www.pungroup.com To the Honorable Mayor and Members of the City Council of the City of Seal Beach Seal Beach, California Page 2 • Management's estimate of the net pension liabilities is based on the proportionate share of actuarial valuation on total pension liability and the proportionate share of the fiduciary net position for Ca1PERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: • Note 1 — Summary of Significant Accounting Policies • Note 9 — Defined Benefit Pension Plans • Note 10 —Other Postemployment Benefits ("OPEB") Plan • Note 13 — Individual Fund Disclosure The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated February 26, 2021. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. To the Honorable Mayor and Members of the City Council of the City of Seal Beach Seal Beach, California Page 3 Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the Management's Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios, the Schedule of the Contributions — Pensions, the Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions — Other Postemployment Benefits, which are required supplementary information ("RSI") that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the Combining and Individual Nonmajor Fund Financial Statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the Introductory and the Statistical Sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Santa Ana, California City of Seal Beach Seal Beach, California Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards For the Year Ended June 30, 2020 THE � PUN GROUP ACCOUNTANTS & ADVISORS City of Seal Beach Table of Contents Page Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards...................................................................... 1 Schedule of Findings and Responses: Significant Deficiencies: Finding 2020-001 Capital Assets and Subsidiary Ledgers This page intentionally left blank THE � PUN GROUP ACCOUNTANTS & ADVISORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors' Report To the Honorable Mayor and Members of City Council of the City of Seal Beach Seal Beach, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Seal Beach ("City"), California, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated February 26, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses as item 2020-001 that we consider to be a significant deficiency. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850 www.pungroup.cpa To the Honorable Mayor and Members of City Council of the City of Seal Beach Seal Beach, California Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The City's Response to Findings The City's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Responses. The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Santa Ana, California February 26, 2021 City of Seal Beach Schedule of Findings and Responses For the Year Ended June 30, 2020 Finding 2020-001 Capital Assets and Subsidiary Ledgers Criteria: The reporting of capital assets provides the City's financial statement users an accurate depiction of the City's future replacement costs, impairments and depreciation of its capital assets; which are essential to the City's operations and health of its capital assets. Condition: During our audit, we noted that the City had used subsidiary ledgers for its capital assets, construction projects and depreciation. These subledgers are included in the capital asset module but not integrated with the City's general ledger system. During the year end closing processing, journal entries are posted to the general ledger to record the capital assets in the general ledger. During the annual audit, adjustments were made to correct capital assets reported in previous years to ensure the subsidiary ledger tied to the general ledger. Cause: The City has used the legacy system for its general ledger that does not support the integration of the capital asset module. Any time changes are made to the capital assets in the module, a journal entry needs to be created and posted to the general ledger which increases the likelihood that inconsistencies occur between the subsidiary ledger and general ledger. Effect or Potential Effect: The manual process of posting the journal entry from the capital asset subsidiary ledger to the general ledger has resulted in discrepancies in capital assets purchased or disposed of in the general ledger which were corrected in the current year. Recommendation: We recommend that the City upgrade its general ledger system and implement a capital asset module that integrates with the general ledger system. The updated system should update the general ledger as assets are purchased and project costs are incurred or disposed of. Additionally, the module should have a function which allows the posting of annual depreciation to the general ledger directly. Views of Responsible Officials: The City is aware of this limitation and has done its best to mitigate these concerns. The City is in the process of implementing a new state-of-the-art financial software that has the capabilities recommended above. We anticipate this finding to be corrected when the new system goes live later in 2021. City of Seal Beach Seal Beach, California Independent Accountants' Report on Applying Agreed -Upon Procedures to Appropriations Limit Schedule For the Year Ending June 30, 2020 THE PUN G 0UP ACCOUNTANTS & ADVISORS THE � PUN GROUP ACCOUNTANTS & ADVISORS INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES To the Honorable Mayor and Members of City Council of the City of Seal Beach Seal Beach, California We have performed the procedures enumerated below, which were agreed to by the City of Seal Beach, California (the "City") and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII -B of the California Constitution) on assisting you in meeting the requirements of Section 1.5 of Article XIII -B of the California Constitution for the year ending June 30, 2020. The City's management is responsible for the Appropriations Limit Schedule. The sufficiency of these procedures is solely the responsibility of the City. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or any other purpose. The procedures performed and associated findings are as follows: 1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ending June 30, 2020, and determined that the limit and annual calculation factors were adopted by resolution of the City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Schedule, we added the prior year's limit to the total adjustments, and agreed the resulting amount to the current year's limit. Finding: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City. Finding: No exceptions were noted as a result of our procedures. 4. We agreed the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council. Finding: No exceptions were noted as a result of our procedures. 200 E. Sandpointe Avenue, Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850 • www.pungroup.com To the Honorable Mayor and Members of City Council of the City of Seal Beach Seal Beach, California Page 2 This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on assisting you in meeting the requirements of Section 1.5 of Article XIII -B of the California Constitution. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Santa Ana, California October 22, 2019 City of Seal Beach Appropriations Limit Schedule For the Year Ending June 30, 2020 A. Appropriations Limit FY 2018-2019 B. Calculation Factors: 1) Population increase % 2) Inflation increase % 3) Total adjustment % C. Annual Adjustment Increase D. Other Adjustments: 1) Loss responsibility (-) 2) Transfer to private (-) 3) Transfer to fees (-) 4) Assumed responsibility (+) E. Total Adjustments F. Appropriations Limit FY 2019-2020 See Accompanying Notes to Appropriations Limit Schedule. Amount Source $ 30,215,496 Prior year appropriation limit adopted by the City 0.9946 California Department of Finance 1.0385 California Department of Finance 1.0329 (BI x 132) 993,851 {(133-1) x Al - N/A - N/A - N/A - N/A 993,851 (C + D) $ 31,209,347 (A + E) 3 City of Seal Beach Notes to Appropriations Limit Schedule For the Year Ending June 30, 2019 Note 1— Purpose of Limited Procedures Review Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit. Note 2 — Method of Calculation Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. Note 3 — Population Factors A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction's own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year ending June 30, 2020, represents the annual percentage change in population for the City of Seal Beach. Note 4 — Inflation factors A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ending June 30, 2020, represents the annual percentage change in per capital personal income. Note 5 — Other Adjustments A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year ending June 30, 2020. 4 i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Philip L. Gonshak, Chief of Police SUBJECT: Approving Amendments to the Professional Services Agreements with Mr. C's Towing and Country City Towing SUMMARY OF REQUEST: That the City Council adopt Resolution 7131: 1. Approving Amendment No. 1 to the Professional Services Agreement dated April 9, 2018 with Mr. C's Towing to extend their services until April 9, 2024; and, 2. Authorizing the City Manager to Execute Amendment No. 1. That the City Council adopt Resolution 7132: 1. Approving Amendment No. 1 to the Professional Services Agreement dated April 9, 2018 with Country City Towing to extend their services until April 9, 2024; and, 2. Authorizing the City Manager to Execute Amendment No. 1. BACKGROUND AND ANALYSIS: On April 9, 2018, the City Council adopted Resolutions 6807 and 6808, which approved three-year Professional Service Agreements (PSAs) with Mr. C's Towing and Country City Towing, respectively, to provide tow service for the City of Seal Beach (the City). It is necessary to amend both PSAs in order to continue to use the services of the companies and enter into an additional three-year term. After an extensive selection process was completed in 2018, Mr. C's Towing and Country City Towing were selected to provide tow service. These companies successfully met the requirements of the City and the California Highway Patrol (CHP), which is the top authority for tow service. Requirements included vehicle inspections, storage facility inspections, certifications of drivers, regulated fees, and business licenses within Orange County. Agenda Item E During the last three years, Mr. C's Towing and Country City Towing have provided quality service for the City. CHP completes bi-annual inspections of the tow yards, and both companies are in good standing. In the past year, Mr. C's Towing and Country City Towing have provided major accommodations in service to the City due to the ongoing COVID-19 pandemic. These accommodations include providing more accessible hours to the tow yard for vehicle release, retrieving stolen vehicles outside of Orange County so they can be processed by the Orange County Crime Lab, and using their equipment to complete vehicle inspections in a timely manner and without having to bring in additional personnel. The resolutions will amend the PSAs and allow the City of Seal Beach to use the towing services of Mr. C's Towing and Country City Towing until April 9, 2024. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved it as to form. FINANCIAL IMPACT: There is no financial impact to the City of Seal Beach as vehicle owners are responsible for paying the fees associated with the cost of towing the vehicles. 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 7131: 1. Approving Amendment No. 1 to the Professional Services Agreement dated April 9, 2018 with Mr. C's Towing to extend their services until April 9, 2024; and, 2. Authorizing the City Manager to Execute Amendment No. 1. Page 2 That the City Council adopt Resolution 7132: 1. Approving Amendment No. 1 to the Professional Services Agreement dated April 9, 2018 with Country City Towing to extend their services until April 9, 2024; and, 2. Authorizing the City Manager to Execute Amendment No. 1. SUBMITTED BY: Philip L. Gonshak Philip L. Gonshak, Chief of Police NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager Prepared by: Michael Ezroj, Support Services Captain ATTACHMENTS: A. Resolution 7131 for Mr. C's Towing B. Professional Services Agreement with Mr. C's Towing C. Mr. C's Towing Professional Service Agreement Amendment No.1 D. Resolution 7132 for Country City Towing E. Professional Services Agreement with Country City Towing F. Country City Towing Professional Service Agreement Amendment No.1 Page 3 RESOLUTION 7131 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AMENDMENT No. 1 FOR PROFESSIONALSERVICES AGREEMENT WITH MR. C'S TOWING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT WHEREAS The City Council hereby approves Amendment No.1 to the Professional Services Agreement dated April 9, 2018, with Mr. C's Towing. WHEREAS The Professional Service Agreement with Mr. C's Towing expiration date was extended in Amendment No.1 from April 9, 2021 until April 9, 2024. WHEREAS Mr. C's Towing remains as a qualified service provider and is currently providing services to the City of Seal Beach. THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The Council hereby authorizes the City Manager or her designee to execute on behalf of the City of Seal Beach all contracts and necessary documents and amendments in relation thereto. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Joe Kalmick, 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 7131 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk PROFESSIONAL SERVICES AGREEMENT Between City of Seal Beach 211 8th Street Seal Beach, CA 90740 91 Mr, C's Towing 10821 Bloomfield StreetoCos Alamitos CA 90720 800-273-3699 This Professional Service Agreement ("the Agreement .� is made as of ; t, 2018 (the " T ffective Date"), by and between , l e , ("Consultant"), a C t, and the City of Seal Beach ("City"), a California charter city, (collectively, the Parties"). 57296-000M 2368080 .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 agree as follows. AGREEMENT 1.0 Scope of Services 1. 1.. shall provide those services ("Services") set forth in the attached WExhibit A, which is hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control. 1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law. 1.4. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manger may authorize extra work to fund unforeseen conditions up to 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 Agree ent shall commence as of the Effective Date and shall continue for a term of years 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 schedules t orth in Exhibit j� for Services but in no event will the City pay more than $' Ansi additional work authorized by the City pursuant to 2of9 57296-0001\1236808v1.doc Section 1.4 will be compensated in accordance with the fee schedule set forth in Exhibif6 . 4.0 Method of Payment 4.1. Consultant shall submit to City monthly invoices for all services rendered pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end of the month during which the services were rendered and shall describe in detail the services rendered during the period, the days worked, number of hours worked, the hourly rates charged, and the services performed for each day in the period. City will pay Consultant within 30_.days of recering 'Consultant's invoice' City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant. 4.2. Upon 24-hour notice from City, Consultant shall allow City or City's agents or representatives to inspect at Consultant's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City's rights under this Section 4.2 shall survive for two years following the termination of this Agreement. 5.0 Termination 5.1. This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other party written notice thereof not less than 30 days prior to the date of termination. 5.2. This Agreement may be terminated by City upon 10 days' notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. r.i� s 1^"`"tn` y 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 3 of 9 S7296-0001 \1236808v 1.doc 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: OA �.�c) hlAr-'tot, �4 ia7sc 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 8.0 Independent Contractor 8.1. Consultant is an independent contractor and not an employee of the City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all 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. 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. 4of9 S7296-0001 \1236808v 1.doc 10.0 Assignment Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect. 11.0 Insurance 11.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 11.2. Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less thanA VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreementllocation 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 5 of 9 S7296-0001 \1236808v1.doc 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. 11.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 11.5. Any deductibles or self-insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 12.0 Indemnification, Hold Harmless, and Duty to Defend Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively "Indemnitees") free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any acts or omissions of Consultant, its employees, or its agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys' fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of the City. With respect to any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Indemnitees, Consultant shall defend Indemnitees, at Consultant's own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. Consultant shall reimburse City and its directors, officials, officers, 6 of 9 S7296-0001112 36808v 1.d o c 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. 14.0 Labor Certification By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 15.0 Entire Agreement This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties. 16.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 17.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 18.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 7 of 9 67296-000111236808v 1. d oc 19.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 20.0 Prohibited Interests; Conflict of Interest 20.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant "financially interested" (as provided in California Government Code §§1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. 20.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 20.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws as described in this subsection. 21.0 Attorneys' Fees If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, 8 of 9 57296-000111236808vtdoc 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 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: M Ingram, City obin L. Roberts, City CONSULTANT By: n ge wl HEdr.. Name:; Approved asr By: rai7ASteele. City Attorney 57296-0001 \1236808v 1-doc y: Name., Its: ; 17 9 of 9 1 Tow Service Agreement Seal Beach Police Department February 2018 'berm of Agreement: 3 Year Exhibit A The City of Seal Beach / Seal Beach Police Department Tow Service Agreement (TSA) allows the City of Seal Beach discretion in a variety of areas. Below is a list of conditions and guidelines that will be applicable for the City of Seal Beach and will be strictly enforced. 1) Maximum response time: Class "A" and Class "B" tow trucks- 25 minutes for daytime and nighttime responses. Class "C" and Class "D" tow trucks- 45 minutes for daytime and nighttime responses. This will be 24 hours a day, seven days a week. An operator or tow truck driver shall respond with a properly equipped tow truck of the class required to tow the vehicle, perform vehicle recover (e.g., rollover, down embankment), provide services (e.g., fuel, flat fire change) and be in possession of the appropriate class of driver license, applicable endorsements and permits. The contractor must maintain a minimum of at least five total trucks. In the event that an operator falls below the required minimum number of tow trucks for more than seven days, due to mechanical failure or a collision, the operator shall notify the Seal Beach Police Department within 48 hours. All trucks must meet and pass California Highway Patrol (CHP) inspections. All trucks and drivers must meet the CHP standard. If a truck or driver fails CHP inspection they shall be removed for rotation until they are able to meet CHP standard. 2) Location of the Tow Facility / Storage yard shall be within a 5 miles of the Seal Beach Police Department. The yard shall be enclosed with no less than a security fence or wall. All storage facilities must be accessible to Seal Beach personnel 24 hours a day, 7 days a week. Contractor should have someone accessible for a vehicle releases during regular business hours. They shall also maintain at least one person at a call station to release a vehicle within 45 minutes upon request, after normal business hours. The operator shall be responsible for the safekeeping and prevention of vandalism of all vehicles and contents which are stored / impounded by the Seal Beach Police Department. An operators place of business shall have posted in plain view to the public the "Towing Fees and Access Notice" and copies of notice readily available to the public pursuant to Section 22651.07(a)(1)(A)CVC. 3) Enclosed Facility: Contractor will maintain, without charge to the City of Seal Beach or any other person, a separate and enclosed garage. The facility must be constructed to include a roof and at least four walls of substantial design to withstand the elements to protect the vehicle from weather. This area shall provide ample room for vehicle inspections. It will be the responsibility of the contractor to maintain and preserve the chain of evidence at all times. No public or unauthorized access shall be granted, unless to Law Enforcement personnel only, to the vehicle or any other items are being stored as evidence. Operators shall seek the Seal Beach Police Department approval to remove and release property from any stored or impounded vehicle to a registered owner or R/O's agent along with proper documentation. i.e. signed notarized letter. A receipt shall be placed inside the vehicle and shall be attached to the operator copy of the CHP 180. In the event a vehicle is impounded for CVC sections 22655(a) VC (hit-and-run investigation) or 22655.5 VC (Evidence), an operator shall not release personal property without prior Seal Beach Police approval. Fees for evidence shall start upon the date that the vehicle is released from the evidence hold. 4) The Seal Beach Police Department shall have the right to waive all contractor tow fees, including "Administrative" and "Release Fees", upon request. 5) Contract agents will provide tow services at no cost to City of Seal Beach for all city vehicles. 6) Rotation of the tow contractors shall be on a call to call structure. In the event that there are multiple items that are needed to be towed the first on the rotation will be contacted. If the operator is unable to service all the items then the next contractor will be contacted. - A call to an operator shall constitute one turn on the list and the operator shall be moved to the bottom of the list. o This includes when the operator fails to answer the phone, is unable to respond, is unable to perform the required service, refuses to respond to provide service, or is canceled due to excessive response time. If the operator responds to a Seal Beach call and is not needed or cancelled by Seal Beach Police, up to and including arriving on scene and standby time which does not result in a tow, there shall be no charge and the operator shall be placed back at the top of the list. Or if the operator is cancelled by the registered owner or agent, prior to taking possession of the vehicle, there shall be no charge and the operator shall be placed back at the top of the list. 7) Demeanor and Conduct: (a) While involved in Seal Beach rotation tow operations or related business, the tow operator and/or employee(s) shall refrain from any acts of misconduct including, but not limited to, any of the following i. Rude or discourteous behavior if. Lack of service, selective service, or refusal to provide service which the operator is capable of performing. iii. Any act of sexual harassment or sexual impropriety. iv. Unsafe driving practices. v. Exhibiting any objective symptoms of alcohol or drug use. 1. The operator/tow truck driver shall submit to a preliminary alcohol screening test upon demand of the Seal Beach Police if an odor of an alcoholic beverage is detected upon their person. vi. Any acts of discrimination based on a protected group. 8) Compliance with Law (a) The tow operator and employees shall, at all times, comply with federal, state, and local laws and ordinances. (b) Any conviction of the operator or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a sexual offense, a drug related offense, felony driving while under the influence of alcohol or drugs, misdemeanor driving while under the influence of alcohol or drugs; or acts of moral turpitude should be cause for suspension or removal of an operator/employee's application, or termination of the tow service agreement. (c) Personnel, as well as tow operators and their employees, shall not be offered nor accept gratuities pursuant to Section 1211O(a) CVC. (d) No Tow operator or their employees shall accept and gratuities from a repair shop for delivery of a vehicle not owned by the repair shop or tow company, for the purpose of storage or repair pursuant to Section 1211 O(c) CVC. (e) An operator shall satisfy a court order mandating reimbursement to the vehicle or property owner for the damage or loss which occurred while the vehicle was in the operators custody (f) An operator or employee arrested/charged for violation involving any above crime should be suspended until the case is adjudicated. ACORD0 C" CERTIFICATE OF LIABILITY INSURANCE DATE (MMlDD1YYYY) 10/26/2017 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 W- YouZoom Insurance Services, Inc 6900 College Blvd Ste 1000 CONTACT NAME: PHONEFAX !C AN _Ext)- 888-240-8803 L rA1C�Nal. 877-835-1633 -ADDRESS, AMServiceCenter@arrewheadgrp.com INSURER(S) AFFORDING COVERAGE MAIC 4 Overland Park 1 66211 INSURER A; American Guarantee and Liability Insurance 26247 INSURED MRCSTOW-01 INSURERB:Zurich American Insurance Company 16535 Mr. C's Towing Inc PD Towing Only Inc DBA Mr.C's Towing 10821 Bloomfield St Suite C INSURER C: Insurance Company of the West 27847 INSURER D: Hudson Specialty Insurance Com any 137079 INSURER E: Los Alamitos CA 90720 INSURER P : COVERAGES CERTIFICATE NUMBER: 342621696 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. INSRTYPE OF INSURANCE ADDLiSUBR POLICY EFF - POLICY EXP LIMITS LTR INSD j WVD POLICY NUMBER MM1DDIYYYY MWDD1YYYY A X COMMERCIAL GENERAL LIABILITY Y CP01639618-01 10/25/2017 10/25/2018 EACH OCCURRENCE $1,000,000 _ACLAIMS-MADE M OCCUR DANIXG—E TO PREM S�ES Ea occRENTED _ $100,000 MED EXP (Any one person) $5,000 PERSONAL & ADV INJURY $1,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $2,000.000 POLICY r_—]JEST LOC PRODUCTS, COMPIOP AGG 52,000,000 $ .I OTHER: B I AUTOMOBILE LIABILITY Y CP01639618-01 10125/2017 10!2512018 I COMBINED SINGLE LIMIT {Ea accident) $1,000,000 INJURY (Per person) $ ANY AUTO I~BODILY X OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accident) $ X HIRED NON -OWNED AUTOS ONLY X AUTOS ONLY PROPERTY OAN� 1A�E Per accident $ $ D X UMBRELLA LIAB X OCCUR HXS100002701 10/25/2017 10/2512018 EACH OCCURRENCE $5,000,000 AGGREGATE $5,000,000 EXCESS LTAB CLAIMS -MADE OLD I I RETENTION$ $ C . WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y i N ANY PROP RI ETOR/PARTNEPJEXECUTIVE VVVE 5021005 06 4/1/2017 4/1/2018 X PER I OTH STATUTE ER E.L. EACH ACCIDENT $1,000,000 OFFICERIMFMRER EXCLUDED? ❑ NIA (Mandatory in NH) E.L. pISEASE - EA EMPLOYEE $1,000,000 It yes, describe under DESCRIPTION OF OPERATIONS beiow E.L. DISEASE - POLICY LIMIT $1,000,000 B A Garage KeepersCP01639GIB-01 Motor Truck Cargo - ProD in Vert CPO 1639618-01 10/25/2017 1012512017• 10/25/2018 1 012 5120 1 B Limit 2,000,000 Any One Vehicle Limit 75,000 DESCRIPTION OF OPERATIONS 1 LOCATIONS 1 VEHICLES 1ACORD 101, Additional Remarks Sahcdulc, may be ached if mare space is required) Garage Keepers includes On -Hook coverage. Cargo Limt: Single Conveyance $75,000, Per Disaster $375,000; Cargo Deductible $1,000. Certificate Holder is named as an Additional Insured. CERTIFICATE HOLDER CANCELLATION Seal Beach P.D. 911 Seal Beach Boulevard Seal Beach CA 90740 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 C c r S s %,, x" 1;AC; © 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016103) The ACORD name and logo are registered marks of ACORD r ACOR�S �� CERTIFICATE OF LIABILITY INSURANCE DATE (MM)ODIYYYY) 4/5/2017 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(SJ, 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 - YouZoom Insurance Services, Inc 6900 College Blvd Ste 1000 CONTACT NAME: PHONE FAX -(AM-Ne, Eitl: 888-240-8803 No); 877-835-1833 ADDRES AMServiceCenter@arrowheadgrp-com INSURER 5 AFFORDING COVERAGE NAIL it Overland Part( KS 66211 INSURER A: Insurance Company of the West 127847 INSURED MRCSTOW-01 INSURER B; T NTED INSURER C: CLAIMS,M -ADE D OCCUR Mr. C's Towing Inc Mr. C's Towing of Southgate Inc 10821 Bloomfield St INSURER D: INSURER E Ste #C INSURER F: Los Alamitos CA 90720 COVERAGES CERTIFICATE NUMBER: 1952145919 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 0Y 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. INSROO SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE I INSD I WVD POLICY NUMBER MMIDDIYYYY mi IYYYYI LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ T NTED CLAIMS,M -ADE D OCCUR DAMAGE REMISES Ea occurrence) (Ea occurrrr ence $ MER EXP (Any ane perso)) $ PERSONAL & ADV INJURY $ 61 AGGREGATE I APPLIES PER: GENERAL AGGREGATE $ - POLICY ❑ JE0 ❑ LOG PRODUCTS- COMProI' AGG $ $ OTHER: AUTOMOBILE LIABILITY I Ea accident SINGLE I IT $ BODILY INJURY (Per person) $ ANY AUTO OWTOSNED ONLY AUTOS SCHEDULED AU BODILY INJURY (Per accident) $ HIREDI NON-OV�INED AUTOS ONLY AUTOS ONLY PRDPERTY DAMAGE $ Per accident $ I UMBRELLA LIAR OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCE55 LIAR CLAIMS -MADE DED RETENTION 5 $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN VVVL502100506 411/2017 411/2018X PER OTR STATUTE ER ANY PROP RIETORIPARTNEWEXECUTIVE E.L- EACH ACCIDENT $1,000,000 OFFICERWEMSEREXCLUDED? ❑ N!A (Mandatory in NH) E.L. DISEASE - FA EMPLOYE $1,000,000 If yes, describe under DESCRIPTVCN OF OPERATIONS belov: - F - DISEASE - POLICY LIMIT $1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS !VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space Is required) Certificate Holder is named as an Additional Insured, CERTIFICATE HOLDER CANCELLATION Seal Beach PD. 911 Seal Beach Blvd. Seal Reach ca 90740 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLI BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE O 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016103) The ACORD name and logo are registered marks of ACORD c Mr C's Towing 10821 Bloomfield St unit C Los Alamitos Ca 90720 800 273-3699 or 562 594-9521 fax 562 594-4329 Charges for Service 1. Class A Tow: 195.00 Storage: Inside & Outside 62.00 2. Class B Tow: 215.00 Storage: Inside & Outside 70.00 3. Class C Tow: 305.00 Storage: Inside & Outside 70.00 * These are our CHP approved rates. Please be aware that rates change yearly plus or minus 5% due to increase in gas prices, etc. The business license tax imposed by the Chapter shall not apply to any business which has gross annual receipts of $25,000 or less in the one year period immediately preceding the issuance of a business license. To establish eligibilty for the for this exemption, the business shall provide such documentation as requested by the Director of Finance. including, without limitation, tax returns, and financial documentation. The Director of Finance shall establish such policies and procedures as are necessary to implement the exemption granted herein. Any business operating in the City with gross receipts of more than $25,000 annually shall pay the full amount of the applicable business tax. In order to determine exemption eligibility, a copy of this completed form, a $25.00 processing fee, and a copy of one of the following Federal Tax Returns must be submitted: EXEMPTIOtN REQUIREMENTS: 2015 Federal Tax Returns •. Schedule C (Form 1040) - Profit or Loss From Business (Sole Proprielorshi/J); or • Schedule E (Form 1040) - Supplemental Income and Loss (From Rental Real Estate, Royalties, Partnerships, S Corporations, Estates, Trusts, etc.); or • -- ` - -'-Scncdule C -E7. -{Form 1u�30)=ixlcCPi-tifit From Business (Sale Proprieiorsliapj; or • Form 1065 - U.S, Return of -Partnership Income. _ ^� Please note: All Independent Contractors within an establishment are required to apply for a city business license. Independent Contractors are those who work on the premises whose Federal/State income taxes are not typically withheld by the employer/business owner and receive an annual Federal Income Tax Form 1099. Lic. Type: General Business License Cily it �` License #: MRC000I I i7 Customer 9: 0006557 City Hall Expires: June 30, 2018 211 s" street ,Date Printed: 06/12/2017 Seal Beach, CA 90740-6379 (562) 43 1-252 7 Ext. 1314 or 1332 Email: BusincssLicenseasealbeachcit.gov BLlsihess License: _ Business Location: License Issued TO: 10821 Bloomfield Ave, Unit C Los Alamitos CA 90720 Mr. C's Towing 10821 Bloomfield Ave, Unit C Business Type: Los Alamitos, CA 90720 "' Auto Towing Owner's/Agent's Name: Business Class: Kurtis McElroy Transportation Services, NEC (pipeline terminal and stockyards for transportation) _ POST IN.•1 CONSPICUOUS PLS! CE-1!'0T-TRANSFEftAISLE_--- City of Seal Beach Ordinance NO. 1653 The business license tax imposed by the Chapter shall not apply to any business which has gross annual receipts of $25,000 or less in the one year period immediately preceding the issuance of a business license. To establish eligibilty for the for this exemption, the business shall provide such documentation as requested by the Director of Finance. including, without limitation, tax returns, and financial documentation. The Director of Finance shall establish such policies and procedures as are necessary to implement the exemption granted herein. Any business operating in the City with gross receipts of more than $25,000 annually shall pay the full amount of the applicable business tax. In order to determine exemption eligibility, a copy of this completed form, a $25.00 processing fee, and a copy of one of the following Federal Tax Returns must be submitted: EXEMPTIOtN REQUIREMENTS: 2015 Federal Tax Returns •. Schedule C (Form 1040) - Profit or Loss From Business (Sole Proprielorshi/J); or • Schedule E (Form 1040) - Supplemental Income and Loss (From Rental Real Estate, Royalties, Partnerships, S Corporations, Estates, Trusts, etc.); or • -- ` - -'-Scncdule C -E7. -{Form 1u�30)=ixlcCPi-tifit From Business (Sale Proprieiorsliapj; or • Form 1065 - U.S, Return of -Partnership Income. _ ^� Please note: All Independent Contractors within an establishment are required to apply for a city business license. Independent Contractors are those who work on the premises whose Federal/State income taxes are not typically withheld by the employer/business owner and receive an annual Federal Income Tax Form 1099. AMENDMENT NO. 1 PROFESSIONAL SERVICES AGREEMENT between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 1.2 Mr. C's Towing 10821 Bloomfield St. Los Alamitos, CA 90720 (800) 273-3699 This Amendment No. 1, dated April 12, 2021, amends that certain agreement ("Agreement") dated April 9, 2018 by and between the City of Seal Beach ("City"), a California charter city and Mr. C's Towing, ("Consultant"), a California corporation. RECITALS A. City and Consultant are parties to the Agreement, pursuant to which Consultant provides towing and storage services to the City. B. City and Consultant wish to amend the Agreement to extend the term of the Agreement. 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: 1. Section 2.0 of the Agreement is hereby amended to read as follows: "2.0 Term The term of this Agreement shall commence on the Effective Date and shall remain in full force and effective until April 9, 2024, unless previously terminated as provided by this Agreement." 2. 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. 3. 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 Amendment No. 1. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 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 a F r By: C�draig A. Steele, City Attorney MR. C'S TOWING By: Name: %l" 0-4, j 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.) RESOLUTION 7132 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AMENDMENT No. 1 FOR PROFESSIONALSERVICES AGREEMENT WITH COUNTRY CITY TOWING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT WHEREAS The City Council hereby approves Amendment No.1 to the Professional Services Agreement dated April 9, 2018, with Country City Towing. WHEREAS The Professional Service Agreement with Country City Towing expiration date was extended in Amendment No.1 from April 9, 2021 until April 9, 2024. WHEREAS Country City Towing remains as a qualified service provider and is currently providing services to the City of Seal Beach. 19:1 :111RI =F_1>! 3 =F_T61: [o] 11 WL9191110 [s] In ITQ=4:14:1 Yfi N **01%V :6 Section 1. The Council hereby authorizes the City Manager or her designee to execute on behalf of the City of Seal Beach all contracts and necessary documents and amendments in relation thereto. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members r_1:�•�r_1nll�ei11PiT ILVA[aII OTM Joe Kalmick, 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 7132 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk PROFESSIONAL SERVICES AGREEMENT Between City of Seal Beach 211 8th Street Seal Beach, CA 90740 91 Country City Towing 13642 Milton Ave. , Westminster CA 92683 714-449-8844 This Professional Service Agreement ("the Agreement") is made as ofT. ,, 2018 (the "Effective Date"), by and between ' eoc.r:J fx C,4 T3"Consultant"), a and the City of Seal Beach ("City"), a California charter city, (collectively, "the Parties"). 57296-0001112368080 . d oc RECITALS A. City desires certain professional services. B. Consultant represents that it is qualified and able to provide City with such services. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.0 Scope of Services 1.1. Consultant shall provide those services ("Services") set forth in the attached Exhibit A, which is hereby incorporated by this reference. To the extent that there is any conflict between Exhibit A and this Agreement, this Agreement shall control. 1.2. Consultant shall perform all Services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. 1.3. In performing this Agreement, Consultant shall comply with all applicable provisions of federal, state, and local law. 1.4. Consultant will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manger may authorize extra work to fund unforeseen conditions up to 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 m Agreeent shall commence as of the Effective Date and shall continue for a term of � 3-1 years 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 setf rth in Exhibit for Services but in no event will the City pay more than $' U: _ i. Any additional work authorized by the City pursuant to 2of9 S7296-0001 \1 2 36808v 1.d o c Section_ 1.4 will be compensated in accordance with the fee schedule set forth in Exhibit ga 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 Copsultant within 30 -days of receiving Consultant's invoice' City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Consultant. 4.2. Upon 24-hour notice from City, Consultant shall allow City or City's agents or representatives to inspect at Consultant's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this Agreement. City's rights under this Section 4.2 shall survive for two years following the termination of this Agreement. 5.0 Termination 5.1. This Agreement may be terminated by City, without cause, or by Consultant based on reasonable cause, upon giving the other party written notice thereof not less than 30 days prior to the date of termination. 5.2. This Agreement may be terminated by City upon 10 days' notice to Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance as required by this Agreement at least 20 days before the expiration date of the previous policy. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. 4,4s I,0 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 3 of 9 S 7296-0001112 36808 v 1. d o c 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: !/o E. cn•►..� F� c �sr� s �- OE Attn: !aT.a (IA,-'- e 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 8.0 Independent Contractor 8.1. Consultant is an independent contractor and not an employee of the City. All services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the services. Any additional personnel performing services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all 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. 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. 4of9 S 7 296-0001 \1 2 36808v 1.doc 10.0 Assignment Consultant shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of City. Any purported assignment without such consent shall be void and without effect. 11.0 Insurance 11.1. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that Consultant has secured all insurance required under this Section. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 11.2. Consultant shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed_ to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage and if Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Professional Liability: $1,000,000 per claim/aggregate. 11.3. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to state: (1) coverage shall not be suspended, voided, reduced or canceled except after 30 days prior written notice by certified mail, return receipt requested, has been given to the City; (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect 5of9 57296-0001112368081 _doc 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. 11.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 11.5. Any deductibles or self-insured retentions shall be declared to and approved by the City. Consultant guarantees that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 12.0 Indemnification, Hold Harmless, and Duty to Defend Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of city officials (collectively "Indemnitees") free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any acts or omissions of Consultant, its employees, or its agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and attorneys' fees and other related costs and expenses, except for such loss or damage arising from the sole negligence or willful misconduct of the City. With respect to any and all such aforesaid suits, actions, or other legal proceedings of every kind that may be brought or instituted against Indemnitees, Consultant shall defend Indemnitees, at Consultant's own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against Indemnitees. Consultant shall reimburse City and its directors, officials, officers, 6 of 9 S7296 -0001112368080.d oc 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. 14.0 Labor Certification By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California labor Code that require every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 15.0 Entire Agreement This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both parties. 16.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 17.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 18.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 7of9 S7296 -000111236808x1. doc 19.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 20.0 Prohibited Interests; Conflict of Interest 20.1. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant "financially interested" (as provided in California Government Code §§1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. 20.2. Consultant further warrants and maintains that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 20.3. Consultant warrants and maintains that it has no knowledge that any officer or employee of City has any interest, whether contractual, non - contractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited "conflict of interest" under applicable laws as described in this subsection. 21.0 Attorneys' Fees If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, 8 of 9 57296-0001 \1236808v1.doc 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 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: t Jill ngram, City M ria r Robin L. Roberts, City Approved as g A_ Steele, City Attorney CONSULTANT By: Name:,,JA_yrvrt,a �croA-cam' ame:�- 9of9 S7296-0001 \1236808v1.doc Tow Service Agreement Seal Beach Police Department February 2018 Term of Agreement: 3 Year Exhibit A The City of Seal Beach / Seal Beach Police Department Tow Service Agreement (TSA) allows the City of Seal Beach discretion in a variety of areas. Below is a list of conditions and guidelines that will be applicable for the City of Seal Beach and will be strictly enforced. 1) Maximum response time: Class "A" and Class "B'' tow trucks- 25 minutes for daytime and nighttime responses. Class "C'' and Class "D" tow trucks- 45 minutes for daytime and nighttime responses. This will be 24 hours a day, seven days a week. An operator or tow truck driver shall respond with a properly equipped tow truck of the class required to tow the vehicle, perform vehicle recover (e.g., rollover, down embankment), provide services (e.g., fuel, flat tire change) and be in possession of the appropriate class of driver license, applicable endorsements and permits. The contractor must maintain a minimum of at least five total trucks. In the event that an operator falls below the required minimum number of tow trucks for more than seven days, due to mechanical failure or a collision, the operator shall notify the Seal Beach Police Department within 48 hours. All trucks must meet and pass California Highway Patrol (CHP) inspections. All trucks and drivers must meet the CHP standard. If a truck or driver fails CHP inspection they shall be removed for rotation until they are able to meet CHP standard. 2) Location of the Tow Facility / Storage yard shall be within a 5 miles of the Seal Beach Police Department. The yard shall be enclosed with no less than a security fence or wall. All storage facilities must be accessible to Seal Beach personnel 24 hours a day, 7 days a week. Contractor should have someone accessible for a vehicle releases during regular business hours. They shall also maintain at least one person at a call station to release a vehicle within 45 minutes upon request, after normal business hours. The operator shall be responsible for the safekeeping and prevention of vandalism of all vehicles and contents which are stored / impounded by the Seal Beach Police Department. An operators place of business shall have posted in plain view to the public the "Towing Fees and Access Notice" and copies of notice readily available to the public pursuant to Section 22651.07(a)(1)(A)CVC, 3) Enclosed Facility: Contractor will maintain, without charge to the City of Seal Beach or any other person, a separate and enclosed garage. The facility must be constructed to include a roof and at least four walls of substantial design to withstand the elements to protect the vehicle from weather. This area shall provide ample room for vehicle inspections. It will be the responsibility of the contractor to maintain and preserve the chain of evidence at all times. No public or unauthorized access shall be granted, unless to Law Enforcement personnel only, to the vehicle or any other items are being stored as evidence. Operators shall seek the Seal Beach Police Department approval to remove and release property from any stored or impounded vehicle to a registered owner or R/O's agent along with proper documentation. i.e. signed notarized letter. A receipt shall be placed inside the vehicle and shall be attached to the operator copy of the CHP 180. In the event a vehicle is impounded for CVC sections 22655(a) VC (hit-and-run investigation) or 22655.5 VC (Evidence), an operator shall not release personal property without prior Seal Beach Police approval. Fees for evidence shall start upon the date that the vehicle is released from the evidence hold. 4) The Seal Beach Police Department shall have the right to waive all contractor tow fees, including "Administrative" and "Release Fees", upon request. 5) Contract agents will provide tow services at no cost to City of Seal Beach for all city vehicles. 6) Rotation of the tow contractors shall be on a call to call structure. In the event that there are multiple items that are needed to be towed the first on the rotation will be contacted. If the operator is unable to service all the items then the next contractor will be contacted. - A call to an operator shall constitute one turn on the list and the operator shall be moved to the bottom of the list. o This includes when the operator fails to answer the phone, is unable to respond, is unable to perform the required service, refuses to respond to provide service, or is canceled due to excessive response time. If the operator responds to a Seal Beach call and is not needed or cancelled by Seal Beach Police, up to and including arriving on scene and standby time which does not result in a tow, there shall be no charge and the operator shall be placed back at the top of the list. Or if the operator is cancelled by the registered owner or agent, prior to taking possession of the vehicle, there shall be no charge and the operator shall be placed back at the top of the list. 7) Demeanor and Conduct: (a) While involved in Seal Beach rotation tow operations or related business, the tow operator and/or employee(s) shall refrain from any acts of misconduct including, but not limited to, any of the following i. Rude or discourteous behavior ii. Lack of service, selective service, or refusal to provide service which the operator is capable of performing. iii. Any act of sexual harassment or sexual impropriety. iv. Unsafe driving practices. v. Exhibiting any objective symptoms of alcohol or drug use. 1. The operator/tow truck driver shall submit to a preliminary alcohol screening test upon demand of the Seal Beach Police if an odor of an alcoholic beverage is detected upon their person. vi. Any acts of discrimination based on a protected group. 8) Compliance with Law (a) The tow operator and employees shall, at all times, comply with federal, state, and local laws and ordinances. (b) Any conviction of the operator or employee involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of violence, a sexual offense, a drug related offense, felony driving while under the influence of alcohol or drugs, misdemeanor driving while under the influence of alcohol or drugs; or acts of moral turpitude should be cause for suspension or removal of an operator/employee's application, or termination of the tow service agreement. (c) Personnel, as well as tow operators and their employees, shall not be offered nor accept gratuities pursuant to Section 12110(a) CVC. (d) No Tow operator or their employees shall accept and gratuities from a repair shop for delivery of a vehicle not owned by the repair shop or tow company, for the purpose of storage or repair pursuant to Section 12110(c) CVC. (e) An operator shall satisfy a court order mandating reimbursement to the vehicle or property owner for the damage or loss which occurred while the vehicle was in the operators custody (1) An operator or employee arrested/charged for violation involving any above crime should be suspended until the case is adjudicated. COUN-10 OP ID. KA .4coRo- CERTIFICATE OF LIABILITY INSURANCE DarEIM0120fIl8 0212012018,<zo18 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 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 Rubin Insurance Agency Inc.PHOONE CA Lic 0645355 5075 Shoreham Place, Suite 100 San Diego, CA 92122 CONTACT FAX Arc No Ext): (A/C, No): E-MAIL ADDRESS: INSURER(S) AFFORDING COVERAGE NAIC # Michael Rubin INSURER A: American States Ins Co 19704 Y INSURED Country City Towing, Inc. INSURERB:Rockhill Insurance Company 28053 110 E Commercial St Anaheim, CA 92801 INSURERC:Insurance Company of the West 27847 — DAMA�,E Tb RENTED PREMISES Ea occurcence) $ 1,000,00 MED EXP (Any one person) $ 10,00 INSURER D: 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. ELT R I TYPE OF INSURANCE -Al $UBR POLICY EFF POLICY EXP LIMITS LTR f I POLICY NUMBER MMlDDlYYYY MMlDDfYYYY GENERAL LIABILITY AUTHORIZED REPRESENTATIVE I I �1�o�4a— EACH OCCURRENCE $ 1,000,00 A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE Fx_1 OCCUR Y 01 Cl 880767 10 04/01/2017 04/01/2018 DAMA�,E Tb RENTED PREMISES Ea occurcence) $ 1,000,00 MED EXP (Any one person) $ 10,00 PERSONAL$ ADV INJURY $ 1,000,00 GENERAL AGGREGATE $ 2,000,00 PRODUCTS - COMPIOP AGG $ 2,0'00,0'0 Grl AGGREGATE LIMIT APPLIES PER. POLICY PROJ'C LOC $ AUTOMOBILE LIABILITY T.M. BINent] $ ED SINGLE LIMIT 1,000,00 Ea ccid BODILY INJURY (Per person) $ A ANY AUTO Y 01 Cl 880767 10 04101/2017 04/01/2018 ALL OWNED X SCHEDULED AUTOS AUTOS X HIRED AUTOSX NON -OWNED AUTOSPER BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ ACCIDENT) )( UMBRELLA IJAB x�01G_UR EACH OCCURRENCE $ 4,000,00BEXCESS AGGREGATE $ 4,000,00 LIAB IMS -MADE FF016283-01 04/01/2017 04/01/2016 DED I X I RETENTION$ NK $ C WORKERS COMPENSATION AND EMPLOYERS LIABILITY ANY PROPRIETORIPARTNERIEXECUTIVE YIN OFFICFRIMEMBER EXCLUDED? ❑ {Mandatory in NH) 111 A WSD503326301 04/01/2017 04/01/2018 VVC STATU- X TORY LIMITS FR E.L. EACH ACCIDENT $ 1,000,00 E L_ DISEASE -EA EMPLOYEE $ 1,000,00 If yes, describe under DESCRkPTION OF OPERATIONS below E . DISEASE -POLICY LIMIT $ 1,000,00 A GKLL 01 Cl 880767 10 04/0112017 1 04/01/2018 Ded $500 600,00 A On-Hook/Cargo 01 Cl 880767 10 04/01/2017 04101/2018 Ded $1000 600,00 DESCRIPTION OF OPERATIONS r LOCATIONS! VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) City of Seal Beach, its directors, Officials, Officers, employees, agents and volunteers are named as additional insured with respects to general and auto liability of the named insured. Blanket general liability additional insured and primary and non-contributory wording included by written contract per form CG7635(0207) attached. Blanket auto liability CERTIFICATE HOLDER CANCELLATION CITY085 CI of Seal Beach Attn: City Clerk SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 211 8th St Seal Beach, CA 90740 AUTHORIZED REPRESENTATIVE I I �1�o�4a— ©1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (20101 The ACORD name and logo are registered marks of ACORD Exhibit B Seal Beach Police Tow Rates 2-26-18 SERVICE FEE TOWING Class A $175.00 Class B or Flatbed $190.00 Class C (Per Hour) $270.00 Class D (Per Hour) $325.00 Dolly, Go -Jacks or Linkage $60.00 Rollover or Winching $130.00 Clean-up Fee $60.00 Hazmat Fee (per 5 gallon bucket) $115.00 STORAGE Class A - Outside $45.00 Class A - Inside $50.00 Class B - Outside $50.00 Class B - Inside $55.00 Class C or D - Outside $55.00 Class C or D - Inside $60.00 After Hours Release 50% of the Tow Fee Minimum Service Call or Drop Fee 50% of the Tow Fee Lien Sale As authorized by State CITY OF SEAL BEACH ACKNOWLEDGEMENT -OE WORKERS COMPENSATION INSURANCE -FORM Business Name COUNTRY CITY TOWING, Inc Business Address 13642 Milton Ave. Westminster, CA 92683 My signature on this form acknowledges I understand that under California Law, I am required to- carry..workers'.compensation-iris urance_for..my emplo_yees-at-all_times._ I further understand that my failure to have the appropriate coverage will subject me to civil penalties of $10,000 per employee who is not covered by workers' compensation AND criminal penalties of up to one year in jail and/or a fine of up to $10,000. I know that even if I don't have employees right now, I will be required to get workers' compensation.CpVErage_as_soon_as_i.have_onP_or_ rrv,re�mpinyRpt.. Name Jay Van Arsdale Title President Signature Date 3-1-2018 AMENDMENT NO. 1 PROFESSIONAL SERVICES AGREEMENT between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 1.2 Country City Towing, Inc. 13642 Milton Avenue Westminster, CA 92863 (714) 449-8844 This Amendment No. 1, dated April 12, 2021, amends that certain agreement ("Agreement") dated April 9, 2018 by and between the City of Seal Beach ("City"), a California charter city and Country City Towing, Inc. ("Consultant"), a California corporation. RECITALS A. City and Consultant are parties to the Agreement, pursuant to which Consultant provides towing and storage services to the City. B. City and Consultant wish to amend the Agreement to extend the term of the Agreement. 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: 1. Section 2.0 of the Agreement is hereby amended to read as follows: "2.0 Term The term of this Agreement shall commence on the Effective Date and shall remain in full force and effective until April 9, 2024, unless previously terminated as provided by this Agreement." 2. 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. 3. 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 Amendment No. 1. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 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 t or By: ig A. Steele, City Attorney COUNTRY CITY TOWING, INC. By: c Name: C_�7_4y 1// c42soq 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_) Tow Rates 41-21 SERVICE FEE TOWING Class A $200.00 Class B or Flatbed $225.00 Cl—C (Per Hour) $325.00 Class D (Per Hour) $350.00 Dolly, Go Jacks or Linkage $60.00 Rollover or Winching $130.00 Clean-up Fee $60.00 Hazmat Fee (per 5 gallon bucket) $115.00 STORAGE Class A -Outside $55.00 Class A- Inside $65.00 Class B - Outside $50.00 Class B - Inside $60.00 Class Cor D - Outside $65.00 Class C or D - Inside $65.00 After Hours Release 50%ofthe Tow Fee Minimum Service Call or Drop Fee 50%ofthe Tow Fee Lien Sale As authorized by State i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Steve Myrter, P.E., Director of Public Works SUBJECT: Awarding and Authorizing the City Manager to Execute Professional Services Agreements with G.M. Sager Construction Co., Inc. and Hardy & Harper, Inc. for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services SUMMARY OF REQUEST: That the City Council adopt Resolution 7133: 1. Approving and awarding a professional services agreement with G.M. Sager Construction Co., Inc., in the amount of $300,000 to provide On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services for a three-year term; and, 2. Approving and awarding a professional services agreement with Hardy & Harper, Inc., in the amount of $300,000 to provide On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services for a three- year term; and, 3. Authorizing and directing the City Manager to execute the Agreements; and, 4. Authorizing the City Manager the option to extend any or all of the Agreements up to two (2) additional one-year terms after its original term for a not -to -exceed amount of $100,000 per additional term. BACKGROUND AND ANALYSIS: The City owns and maintains 41.8 centerline miles of pavement that range from smaller local streets to larger arterials as designated on the Orange County Master Plan of Arterial Highways (OC MPAH). Per the 2020 Pavement Management Plan, the Citywide pavement condition index (PCI) is 80, which is interpreted as "good". The City budgets annual capital improvement program projects to rehabilitate select roadway segments; however, there are emergency and unplanned Agenda Item F situations where immediate attention is needed, such as potholes or pavement restoration due to emergency utility repairs. In-house staff is able to address smaller efforts; however, contract services are required for more extensive work. Depending on the scope of work, the process to retain contract services can take up to four months from the time of bid solicitation to purchase order issuance, which is not feasible for emergency or unplanned situations. In efforts to streamline maintenance and repair needs, and provide readily available contract support, staff issued a Request for Proposal (RFP) to provide On -Call Emergency and Task Asphalt Maintenance and Repair Services. On February 16, 2021, staff received three (3) proposals. The evaluation panel, comprised of Public Works staff, rated the proposals based on their overall qualification, experience, availability, familiarity with the City's policies and standards, approach, cost proposal, amongst other factors. Based on the aforementioned, the following firms were deemed most qualified. Reference checks for these firms indicate satisfactory proficiency and experience to provide the requisite services. • G.M. Sager Construction Co., Inc. • Hardy & Harper, Inc. Staff reviewed each firm's fee and cost proposal and found them to be consistent with industry standards. With the exception of an emergency, the scope and fee for each task will be agreed upon between the City and contractor through a letter proposal based on the established Fee and Cost Proposal. In an emergency, the fee would be based on the rates specified on the established Fee and Cost Proposal. Similar to other City on-call agreements, expenditures over the adopted City Manager's contract authority will be brought to City Council for approval. In an emergency, expenditures will be brought to City Council for ratification after the emergency work is completed. The contract term is three (3) years and the City will have the option to extend the contract for up to two (2) additional one-year terms. Each contractor's agreement is in a not -to -exceed amount of $300,000 for the three-year original term. Each one-year term extension is in the amount of $100,000. Due to the on-call nature of this agreement, work is not guaranteed to the contractor. 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 with G.M. Sager Construction Co., Inc and Hardy & Harper, Inc., will not have a significant effect on the environment. Page 2 All maintenance and repair services under these Agreements will comply with all requirements of the California Environmental Quality Act (CEQA) and will generally be categorically exempt under Sections 15301 and 15302. Environmental impacts associated with each task order will be assessed under a separate effort. LEGAL ANALYSIS: The City Attorney has approved the agreements and resolution as to form. FINANCIAL IMPACT: All maintenance and repair services would be related to streets, water, sewer, or storm drain. Costs incurred under the Agreement would be charged to the appropriate fund's operation and maintenance budget. Therefore, no additional appropriation is required at this time. 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 7133: 1. Approving and awarding a professional services agreement with G.M. Sager Construction Co., Inc., in the amount of $300,000 to provide On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services for a three-year term; and, 2. Approving and awarding a professional services agreement with Hardy & Harper, Inc., in the amount of $300,000 to provide On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services for a three- year term; and, 3. Authorizing and directing the City Manager to execute the Agreements; and, 4. Authorizing the City Manager the option to extend any or all of the Agreements up to two (2) additional one-year terms after its original term for a not -to -exceed amount of $100,000 per additional term. Page 3 SUBMITTED BY: Steve Myrter Steve Myrter, P.E., Director of Public Works NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager Prepared by: Iris Lee, Deputy Public Works Director/City Engineer ATTACHMENTS: A. Resolution 7133 B. Agreement with G.M. Sager Construction Co., Inc. C. Agreement with Hardy & Harper, Inc. Page 4 RESOLUTION 7133 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AWARDING AND AUTHORIZING THE CITY MANAGER TO EXECUTE PROFESSIONAL SERVICES AGREEMENTS WITH G.M. SAGER CONSTRUCTION CO., INC. AND HARDY & HARPER, INC. FOR ON-CALL EMERGENCY AND UNEXPECTED TASK ASPHALT MAINTENANCE AND REPAIR SERVICES. WHEREAS, the City of Seal Beach (City) desires to retain a selected number of contractors to provide on-call asphalt maintenance and repair services in both emergency and unplanned situations; and, WHEREAS, on January 19, 2021, the City issued a Request for Proposals for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services; and, WHEREAS, on February 16, 2021, the City received three (3) proposals in response to the Request for Proposal; and, WHEREAS, the City performed a detail review and evaluation of the proposals and deemed the following firms as the most qualified to provide such services: • G.M. Sager Construction Co., Inc. • Hardy & Harper, Inc. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. A. The City Council hereby awards a three (3) year Professional Services Agreement (Agreement) to G.M. Sager Construction Co., Inc. for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services in a not -to -exceed amount of $300,000 for the three- year term. B. The City Council hereby authorizes and directs the City Manager to execute the Agreement on behalf of City. C. The City Council hereby authorizes the City Manager to extend the Agreement with G.M. Sager Construction Co., Inc. for up to two (2) additional one-year terms, at her discretion, in a not -to -exceed amount of $100,000 per one-year term extension. Section 2. A. The City Council hereby awards a three (3) year Professional Services Agreement (Agreement) to Hardy & Harper, Inc. for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services in a not -to -exceed amount of $300,000 for the three-year term. B. The City Council hereby authorizes and directs the City Manager to execute the Agreement on behalf of City. C. The City Council hereby authorizes the City Manager to extend the Agreement with Hardy & Harper, Inc. for up to two (2) additional one- year terms, at her discretion, in a not -to -exceed amount of $100,000 per one-year term extension. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members F-11 1.3 1r_1nll�ireffl M ILVA[ai1107 Joe Kalmick, 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 7133 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk PROFESSIONAL MAINTENANCE AGREEMENT for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 G.M. Sager Construction Co., Inc. 1380 S. East End Avenue Pomona, CA 91766 (909) 620-9987 This Professional Maintenance Agreement ("the Agreement") is made as of April 12, 2021 (the "Effective Date"), by and between G.M. Sager Construction Co., Inc. ("Contractor"), a California corporation, and the City of Seal Beach ("City"), a California charter city, (collectively, "the Parties"). RECITALS A. City desires certain on-call emergency and unexpected task asphalt maintenance and repair services. B. City desires to engage Contractor to provide on-call emergency and unexpected task asphalt maintenance and repair services in the manner set forth herein and more fully described in Section 1.0. C. Contractor represents that the principal members of its firm are qualified California licensed contractors (License #607796, DIR 1000010280) and are fully qualified to perform the services contemplated by this Agreement in a good and professional manner; and it desires to perform such services as provided herein. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.0 Scope of Services 1.1. Strictly on an on-call emergency or unexpected task basis, Contractor shall provide those asphalt maintenance and repair services (collectively "Services") set forth in the Request for Proposal (Exhibit A), and Contractor's Proposal (Exhibit B), attached and incorporated herein by this reference. To the extent that there is any conflict between Exhibit A, Exhibit B, and this Agreement, this Agreement shall control. Given the on-call emergency or unexpected task nature of this Contract, Contractor acknowledges that there is no guarantee that City shall request any Services hereunder. 1.2. Contractor 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, Contractor 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, Contractor hereby represents that it has the experience necessary to undertake the Services to be provided. In light of such status and experience, Contractor hereby covenants that it shall follow the customary professional standards in performing all Services. The City relies upon the skill of Contractor, and Contractor's staff, if any, to do and perform the Services in a skillful, competent, and professional manner, and Contractor and Contractor's staff, shall perform the 2of14 Services in such manner. Contractor shall, at all times, meet or exceed any and all applicable professional standards of care. The acceptance of Contractor's work by the City shall not operate as a release of Contractor from such standard of care and workmanship. 1.5. Contractor will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 2.0 Term 2.1. The term of this Agreement shall commence as of the Effective Date and shall continue for a term of three (3) years ("Original Term") and shall expire at midnight on April 12, 2024, unless sooner terminated or extended as provided by this Agreement. 2.2. The City, at its sole option, may elect to extend the Original Term of this Agreement, upon the same terms and conditions, for up to two (2) additional terms of one year each ("extension"), by providing written notice to Contractor at least one month prior to the expiration of an existing term. If timely elected by the City, the first extension shall have a term extending from April 12, 2024 through and including April 12, 2025, unless sooner terminated or extended pursuant to this Agreement. If timely elected by the City, the second extension shall be from April 12, 2025 through and including April 12, 2026, unless sooner terminated pursuant to this Agreement. Any extension shall not be effective except upon execution of a written amendment to this Agreement signed by the City Manager and Contractor's authorized representatives. 3.0 Contractor's Compensation 3.1. City will pay Contractor in accordance with the rates shown on the fee schedule set forth in Exhibit B for the Services assigned by City but in no event will the City pay more than the total not -to -exceed amount of $300,000.00 (Three Hundred Thousand and 00/XX dollars) for the Original Term. 3.2. In the event that City elects to extend the Original Term in accordance with Section 2.2 of this Agreement, City will pay Contractor in accordance with the hourly rates shown on the fee schedule set forth in Exhibit B for Services but in no event will the City pay more than the total not -to -exceed amount of $100,000.00 (One Hundred Thousand and 00/XX dollars) for each extension. 3 of 14 3.3. Contractor will not be compensated for any work performed not authorized by City and specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. Any additional work authorized by the City Council pursuant to this Section will be compensated in accordance with the fee schedule set forth in Exhibit B. 4.0 Method of Payment 4.1. Contractor 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 Contractor within 30 days of receiving Contractor's invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Contractor. 4.2. Upon 24-hour notice from City, Contractor shall allow City or City's agents or representatives to inspect at Contractor's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Contractor in connection with this Agreement. City's rights under this Section 4.2 shall survive for five (5) years following the termination of this Agreement. 5.0 Termination 5.1. 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 30 days prior to the date of termination. 5.2. 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. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. Michael Sager is the Contractor's primary representative for purposes of this Agreement. Michael Sager shall be responsible during the term 4 of 14 of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. Contractor may not change its representative without the prior written approval of City, which approval shall not be unreasonably withheld. 7.0 Notices 7.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the party at the following addresses: To City: City of Seal Beach 211 -8th Street Seal Beach, California 90740 Attn: City Manager To Contractor: G.M. Sager Construction Co., Inc. 1380 S. East End Avenue Pomona, CA 91766 Attn: Michael Sager 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 8.0 Independent Contractor 8.1. Contractor is an independent contractor and not an employee of the City. All work or other Services provided pursuant to this Agreement shall be performed by Contractor or by Contractor's employees or other personnel under Contractor's supervision, and Contractor and all of Contractor's personnel shall possess the qualifications, permits, and licenses required by State and local law to perform such Services, including, without limitation, a City of Seal Beach business license as required by the Seal Beach Municipal Code. Contractor will determine the means, methods, and details by which Contractor's personnel will perform the Services. Contractor shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Services and compliance with the customary professional standards. 8.2. All of Contractor's employees and other personnel performing any of the 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 and Contractor's personnel shall not supervise any of City's employees; and City's employees shall not supervise Contractor's personnel. Contractor's personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as 5 of 14 an employee of City; and Contractor's personnel shall not use any City e-mail address or City telephone number in the performance of any of the Services under this Agreement. Contractor shall acquire and maintain at its sole cost and expense such vehicles, equipment and supplies as Contractor's personnel require to perform any of the Services required by this Agreement. Contractor shall perform all Services off of City premises at locations of Contractor's choice, except as otherwise may from time to time be necessary in order for Contractor's personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Contractor's performance of any Services under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform such Services. City may make a computer available to Contractor from time to time for Contractor's personnel to obtain information about or to check on the status of projects pertaining to the Services under this Agreement. 8.3. Contractor shall be responsible for and pay all wages, salaries, benefits and other amounts due to Contractor's personnel in connection with their performance of any 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, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, State, or federal policy, rule, regulation, statute or ordinance to the contrary, Contractor and any of its officers, employees, agents, and subcontractors providing any of the Services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System ("PERS") as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits. 8.4. 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 liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Contractor's personnel practices. or to the extent arising from, caused by or relating to the violation of any of the provisions of this Section 8.0. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Contractor under this Agreement 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. This duty of indemnification is in addition to Contractor's duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. 6 of 14 9.0 PERS Compliance and Indemnification 9.1. General Requirements. The Parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform any work or other Services under this Agreement, Contractor shall assure compliance with the Public Employees' Retirement Law, commencing at Government Code § 20000, the regulations of PERS, and the Public Employees' Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations. 9.2. Indemnification. Contractor shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Contractor's violation of any provisions of this Section 9.0. This duty of indemnification is in addition to Contractor's duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. 10.0 Confidentiality Contractor covenants that all data, documents, discussion, or other information developed or received by Contractor or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contractor without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. All City data shall be returned to City upon the termination of this Agreement. Contractor's covenant under this Section shall survive the termination of this Agreement. 11.0 Subcontractors No portion of this Agreement shall be subcontracted without the prior written approval of the City. Contractor is fully responsible to City for the performance of any and all subcontractors. 12.0 Assignment Contractor 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. 7 of 14 13.0 Inspection and Audit of Records Contractor 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. Contractor 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, Contractor 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. Contractor shall retain all financial and program service records and all other records related to the Services and performance of this Agreement for at least five (5) years after expiration, termination or final payment under this Agreement, whichever occurs later. City's rights under this Section 13.0 shall survive for five (5) years after expiration, termination or final payment under this Agreement, whichever occurs later. 14.0 Safety Requirements All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA. The City may issue restraint or cease and desist orders to Contractor when unsafe or harmful acts are observed or reported relative to the performance of the Services. Contractor shall maintain the work sites free of hazards to persons and property resulting from its operations. Contractor shall immediately report to the City any hazardous condition noted by Contractor. 15.0 Insurance 15.1. Contractor shall 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 shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 15.2. Contractor shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers' Compensation and Employer's Liability coverages. Contractor 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) Workers' Compensation in the amount required by law and Employer's Liability: $1,000,000 per accident and in the aggregate for bodily injury or disease. 15.3. The insurance policies shall contain the following provisions, or Contractor 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 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 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 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. 15.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 9 of 14 15.5. Any deductibles or self-insured retentions shall 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. 16.0 Indemnification, Hold Harmless, and Duty to Defend Contractor and the City agree that the City, its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively "Indemnitees" in this Section 16.0) should, to the fullest extent permitted by law, be fully protected from any loss, injury, damage, claim, liability, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs and/or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to the City and all other Indemnitees. Contractor acknowledges that the City would not have entered into this Agreement in the absence of the commitment of Contractor to indemnify and protect the City and the other Indemnitees, as set forth in this Agreement. 16.1. Indemnity. To the fullest extent permitted by law, the Contractor 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 16.0) from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys and other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively "Claims"), in law or equity, whether actual, alleged or threatened, which arise out of, pertain to, or relate to the acts or omissions, or willful misconduct, of the Contractor, and/or its officers, agents, servants, employees, subcontractors, materialmen, suppliers, or contractors, or their officers, agents, servants or employees (or any entity or individual that the Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Claims arising from the sole negligence or willful misconduct of Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. The Contractor 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. The Contractor shall 10 of 14 reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith. 16.2. Subcontractor Indemnification. Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section 16.0 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnities, Contractor 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 Contractor's subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor's subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Claims or Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. 16.3. The obligations of Contractor under this or any other provision of this Agreement shall not be limited by the provisions of any workers' compensation act or similar act. Contractor expressly waives any statutory immunity under such statutes or laws as to the Indemnitees. Contractor's indemnity obligation set forth in this Section 16.0 shall not be limited by the limits of any policies of insurance required or provided by Contractor pursuant to this Agreement. 16.4. Contractor's covenants under this Section 16.0 shall survive the expiration or termination of this Agreement. 17.0 Equal Opportunity Contractor affirmatively represents that it is an equal opportunity employer. Contractor shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non-discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. 18.0 Labor Certification By its signature hereunder, 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 Workers' Compensation or to undertake self-insurance 11 of 14 in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 19.0 Prevailing Wage and Payroll Records If this Agreement calls for services that, in whole or in part, constitute "public works" as defined in the California Labor Code, then Contractor 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. 20.0 Entire Agreement This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both Parties. 21.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 22.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 23.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 24.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 25.0 Prohibited Interests; Conflict of Interest 25.1. Contractor 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. Contractor further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Contractor shall 12 of 14 avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. 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. 25.2. 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. 25.3. 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 26.0 Attorneys' Fees If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party all of its attorneys' fees and other costs incurred in connection therewith. 27.0 Exhibits All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control. 28.0 Corporate Authority The person executing this Agreement on behalf of Contractor warrants that he or she is duly authorized to execute this Agreement on behalf of said party and that 13 of 14 by his or her execution, the Contractor 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 CONTRACTOR: G.M. Sager Construction Co., Inc., a California corporation By: Attest. in Jill R. Ingram, City Manager Gloria D. Harper, City Clerk Approved as Far By: raig A. Steele, City Attorney By: Gary ager President By: 5 Michael Sager Vice President (Please note, two signatures required for corporations pursuant to California Corporations Code Section 313 from each of the following categories: (i} the chairperson of the hoard, the president or any vice president, and (ii) the secretary, any assistant secretary, the chief financial officer or any assistant treasurer of such corporation_) IiEWTEV, EXHIBIT Request for Proposal City of Seal Beach Request for Proposals for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services RFP responses to be received until 2:00 P.M., February 15, 2021 in the Public Works Department ATTN: Iris Lee, Deputy Director of Public Works/City Engineer Approved for Advertising: Iris Lee City Engineer Date Issued: January 19, 2021 P We works Table of Contents I. INTRODUCTION II. QUALIFICATIONS III. SCOPE OF SERVICES IV. PRE -PROPOSAL QUESTIONS V. SCHEDULE VI. SUBMITTAL REQUIREMENTS VII. FEE & COST PROPOSAL VIII. INTERVIEW IX. SELECTION PROCESS X. SPECIAL PROVISIONS XI. GENERAL CONDITIONS EXHIBIT A — Fee & Cost Proposal EXHIBIT B — Sample Contract Samples from Exhibit A and Exhibit B from the Request for Proposals were omitted intentionally. <,. PArkme works REQUEST FOR PROPOSALS FOR ON-CALL EMERGENCY AND UNEXPECTED TASK ASPHALT MAINTENANCE REPAIR SERVICES ALL INTERESTED PARTIES MUST REGISTER BY EMAILING ileensealbeachca.gov. COMMUNICATION AND ADDENDA, IF ANY, WILL BE DISTRIBUTED TO REGISTERED PARTIES VIA EMAIL PROVIDED. I. INTRODUCTION The City of Seal Beach ("City") owns and maintains approximately 41.8 centerline miles of pavement along with a network of alleyways, of which most are constructed of asphalt pavement. The City is seeking one or more contractors who would be available to provide on-call asphalt repair services in both emergency and unplanned situations, for an anticipated term of three (3) years. The final agreement amount and term will depend on the quality, diversity, responsiveness of the received proposals, and the future need for emergency and unexpected task work. Work shall comply with the Standard Specifications for Public Works Construction (latest edition, unless otherwise noted), City of Seal Beach standards and provisions, Caltrans Standard Specifications, and any Agencies Having Jurisdiction (AHJ's). Due to the on-call/emergency nature of this contract, no work is guaranteed, even if awarded. The scope, work schedule, and cost for each requested emergency or unexpected task will be negotiated on a project -by -project basis, based on the rates specified in the response. The City reserves the right to not accept the Contractor's proposed scope and fee, and to let any project for competitive bid at the discretion of the City. II. QUALIFICATIONS Minimum Qualifications • Valid California Contractor's Class A (General Engineering) license issued by the Department of Consumer Affairs — Contractors State License Board by the time of proposal submittal and shall remain valid for the term of the Agreement. • Valid City of Seal Beach business license for the term of the Agreement, if selected. Minimum ten (10) years of professional asphalt maintenance and repair service experience. • Ability to mobilize and respond to emergency job sites, as necessary within the time frames provided in this RFP. 3 <,. PArkme works • Maintain, or have the ability to quickly acquire, all necessary labor, equipment, and material to promptly complete the Work. Desirable Qualifications • Knowledge and experience with the City of Seal Beach's standards, provisions, and practices. • Familiarity with public sector on-call maintenance and repair contracts. • Adequate availability of key team members and equipment. III. SCOPE OF SERVICES Work to be done consists of furnishing all labor, supervision, methods of processes, implements, tools, machinery, safety equipment, traffic control, materials and proper licensing required to identify, list, and perform asphalt maintenance and repair services in those areas designated by the City on an emergency or unexpected task basis. Due to the on-call/as-needed nature of this Agreement, Work may vary according to the need and there is no guarantee that work will be assigned. The Contractor shall furnish and maintain records designating exact locations and areas of repairs and maintenance. Such reports shall be signed by the Contractor and the City. If the City determines that the Contractor has not satisfactorily performed the Work, payment will be withheld for said Work until such time the Work is completed to the satisfaction of the City. All work for which progress payment is made shall be reported on and certified according to the foregoing procedure, and in addition thereto, the City shall certify that the Work has been inspected and completed to the satisfaction of the City prior to payment. The Contractor shall be responsible for timely payment of any subcontractor, materialmen, workers and suppliers. Authorization of Work Unless otherwise noted as an emergency, City will coordinate with Contractor to schedule the work with a minimum seven (7) -day prior notification. In an emergency, Contractor shall respond and mobilize within four (4) hours after initial request from the City for Work under this contract. Contractor shall perform the on-call services described in the Section III - Scope of Services ("Services" or "Work"). Upon written request from the City, Contractor shall provide a "letter proposal" for Services requested by the City (hereinafter referred to as the "Letter Proposal"). At a minimum, the Letter Proposal shall include, but is not limited to, the following: • A detailed description of the Work to be provided; • The estimated number of hours, by task, and cost to complete the Work; and 4 Pdbllo works • A detailed Work schedule. No Services shall be provided until the City has provided written acceptance of the Letter Proposal, unless in an emergency situation after Contractor has received a written notice to proceed from the City Engineer or designee. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Letter Proposal or notice to proceed. Progress of Work Time is of the essence on every aspect of the Work. Work shall proceed in an expeditious and orderly manner. The Contractor shall endeavor to avoid service interruptions to the extent feasible. Wherever possible, Work shall be completely finished prior to proceeding to the next location. Any exceptions shall be approved by the City. Altpmfinns. The City reserves the right to increase or decrease the quantity of any item or portion of the Work or to omit portions of the Work as may be deemed necessary or advisable by the City. The City may make such alterations or deviations, additions to, or omissions from these specifications, as may be determined during the progress of the work to be necessary and advisable for the proper completion thereof. Such alterations or deviations, additions or omissions shall in no way affect or make void the Agreement. Upon written order of the City, Contractor shall proceed with the Work as increased, decreased or altered. Extra Work 1. Extra work shall not be performed without prior written approval by the City unless public safety is immediately at risk. 2. Extra work may be required, and extra time may be granted, by the City as a result of acts of God, vandalism, theft, civil disturbances, accidents, or improvements. 3. If unit prices are not available, payment for extra work will be based on actual cost of labor, plus wholesale cost of materials, plus an industry standard markup not to exceed 15%. Extra services other than those listed in Exhibit A shall be negotiated on a time -and -material basis with a "not to exceed" amount. Acceptance of Work Done The City, at its sole discretion, will make inspections and determine that the Work has been completed in all respects in accordance with these specification, and if applicable, accepted. Billing Form, Records and Reports The Contractor shall maintain a record of all work performed, including but not limited to location, types, and amounts maintained/installed/removed. These records shall list the date(s) of the Work performed. A copy of such record shall be provided to the City upon completion of each Task Order. Contractor shall maintain such record through the term of the Agreement, plus three (3) years after Contract termination. 5 <,. PArkme works The Contractor shall return appropriate and completed Task Orders showing the date and inventory of work performed, signed by an authorized representative of Contractor and attached to each invoice. Contractor shall provide a billing form and progress payment form approved by the City. Method of Work The asphalt repair work shall involve all work necessary to remove and replace asphalt work, as needed to complete the work in place. All Work shall be performed per the Standard Specifications for Public Works Construction (Green Book — latest edition, unless otherwise noted), City of Seal Beach standards and provisions, Caltrans Standards Specifications, and any AHJ's requirements. The Contractor shall ensure all work performed under this contract be in such a manner as to provide maximum safety to the public and their staff. Contractor must comply with all safety standards required by all regulatory agencies including but not limited to: California Division of Occupational Safety and Health (CAL - OSHA), South Coast Air Quality Management District (SCAQMD), and the Orange County Environmental Health Care Agency (OCEHC). This also includes local regulatory compliance set forth by the City of Seal Beach. The City reserves the right to issue restraint, or cease and desist orders to the Contractor when unsafe or harmful acts are observed or reported relative to the performance under this contract. The Contractor shall be responsible and shall take necessary precautions to protect work sites free of hazards and/or damages, until the Work is accepted by the City. Any hazardous conditions noted by the Contractor, which is not a result of his/her operations, shall be immediately reported to the City. Rubbish and construction debris shall be promptly removed from the work area and properly disposed of to an approved disposal site. The Contractor shall provide a self-propelled vacuum -type sweeper, or as approved by the City, as required to maintain Work site cleanliness. After removal operations have been completed, the grounds shall be left in a neat, safe, and presentable condition, to the satisfaction of the City. The Contractor shall verify the location of all utilities prior to any Work, and shall be held liable for all damages incurred due to his/her operations. Materials The following supplements Section 203 — Bituminous Materials in the Greenbook: 203-5 SLURRY SEAL 203-5.1 General Slurry seal shall be emulsion -aggregate slurry (EAS) conforming to section 203-5.4, unless otherwise noted. 203-5.4 Emulsion -Aggregate Slurry (EAS) 203-5.4.1 General Emulsion -aggregate slurry (EAS) shall be Type II-CQS-1 h conforming to section 203-3. 203-5.4.2 Materials Mile works 203-5.4.2.2 Emulsified Asphalt Emulsified asphalt shall be of the quick -set type. 203-5.4.2.4 Latex Latex shall be Ultrapave 65K produced by Textile Rubber and Cement Company, Inc., or equal as approved by the Engineer in advance of ordering the latex additive. It shall be added to the emulsified asphalt by the co -mill method at the emulsion plant at the rate of 2'/2 percent of weight of the emulsified asphalt. Latex -added emulsified asphalt shall be kept in a suspended state by an agitating mixer and mixed every three days. 203-6 ASPHALT CONCRETE. 203-6.4 General. Performance graded (PG) asphalt binder shall be PG 64-10 and conform to Table 203-1.2. Asphalt concrete for finish and leveling courses shall be Type III -C2 -PG 64-10. Asphalt concrete for base courses shall be Type III -132 -PG 64-10. Asphalt concrete for A.C. curbs and berms shall be Type III -D -PG 70-10 with 1% additional binder in a mix design approved by OC Public Works Materials Laboratory per County of Orange, OC Public Works Standard Plan 1805. The contact surfaces of all cold pavement joints, curbs, gutters, etc. shall be painted with Grade SS- 1 h emulsified asphalt immediately before the adjoining A.C. pavement is placed. Finished surface of the new pavement at the edge of gutter shall be flush with the edge of the gutter in all crosswalk areas and shall be 3/8" higher than the lip of gutter in all other area, unless otherwise noted. 203-11 ASPHALT RUBBER HOT MIX (ARHM) 203-11.1 General. Composition and grading for all surface course paving shall be ARHM-GG-C 203-17 CRACK SEAL 203-17.1 General Crack sealing material shall be RW 306 R sealant and per the following specifications: TEST REQUIREMENT Pen @ 77 degrees F (ATSM D-3407) 25(+/-5) Pen @ 115 degrees F (ASTM D-3407) 70 max. Softening Point 210-220 OF Ductility @ 77 degrees F, 5cm/min 30 min Force Ductility 4 max 7 <,. PArkme works Resilience 50-60 Brookfield Viscosity 380 degrees F 20-30 poise Flow @ 140 degrees F 0 max Flexibility (90 degree bend in 2 sec. over 1 1/8 mandrel. No cracks. pass @ 0 °F Construction Methods The following supplements Section 302 — Roadway Surfacing in the Greenbook: 302-1 CRACK SEAL 302-1.1 General After cold milling operations and prior to any paving operations all pavement surfaces shall be inspected, weed abated, and crack sealed/filled. The Contractor shall apply herbicide to all vegetation one week prior to removal and crack sealing. Removal of vegetation shall consist of routing out cracks to ensure proper vegetation removal from all cracks. Cracks shall be cleaned using heat lance at approximately 2800 degrees to destroy any vegetation root or seed that may be left behind to prevent any further growth. The heat lance application will also clean out all dirt, sand, debris, and moisture. 302-1.2 Sealant Application Sealant shall be applied in prepared cracks at a temperature of approximately 380 degrees Fahrenheit. No more than a 2'/2" wide and 1/16" thick strip of material shall be applied to pavement surface. Squeegeeing of sealant will not be acceptable due to the inability to consistently meet the required configuration. Any excess sealant material shall be removed from asphalt surfaces. All cracks greater than 1 -inch shall be tack -coated and filled with hot asphalt concrete, rolled flush, and compacted to 95% minimum. The pavement shall then be cleaned with a power broom. 302-4 SLURRY SEAL SURFACING 302-4.8 Spreading and Application Prior to beginning slurry seal operations, the Contractor shall furnish current licensed weighmaster's certificates indicating the net weight capacity of the aggregate bin of each slurry mixer. Except for partial loads to complete a day's schedule, or for patching, each mixer shall be filled to its rated capacity and the Engineer and the Contractor shall keep a daily count of the number of loads and/or partial loads applied to the streets by each slurry mixer. Each aggregate bin shall have permanent calibration marks in maximum increments of 2 tons. Each slurry crew shall be composed of a coordinator at the Project site at all times, a competent quick -set mixing operator, a competent driver, and sufficient laborers for any handwork, cleanup, and barricading. Slurry shall not be applied prior to 8:00 a.m. and shall not be applied after 1:00 p.m., unless approved by the Engineer. Approval of application after 1:00 p.m. will only be for the purpose of completing the section of Work that is underway. Slurry seal shall be sufficiently cured for vehicle traffic without tracking or damage to the surface by 3:00 p.m. on the same day. M <,. PArkme works In case of damage caused by vehicles and/or pedestrians upon slurry that has not been sufficiently cured, the Contractor shall replace all of the damaged Work at the Contractor's expense and no additional compensation shall be made by the City. Upon completion of the day's slurry seal, streets and parking lots shall be temporarily striped within 24 hours. All Stop Bars shall be temporarily striped on the same day before the street is reopened to traffic. Final striping and marking shall be installed no more than ten (10) Working Days after placement of slurry seal. Prior to applying slurry seal, the Contractor shall clean all work surfaces and remove all loose materials, vegetation, oil, and other foreign material. Additionally all locations with weeds shall be treated by an approved weed -killer before any slurry seal is applied. 302-5.1 General. The top layer of asphalt concrete (finish course) shall be placed in a separate lift. Longitudinal joints between two passes of asphalt concrete shall be along a lane line. Leveling course longitudinal joints shall be offset at least two (2) feet from a lane. Level course longitudinal joints and finish course longitudinal joints shall not be located along the same line. Leveling course transverse joints and finish course transverse joints shall be offset approximately five (5) feet from each other, except at the project paving limits. Localized Pavement Removals & Patching Operations — In areas designated for localized pavement removal and replacement, all such AC removals shall occur AFTER the initial pavement grinding operations have been conducted and a site review has been made with the City to verify the final limits of required removal and replacement. Contractor shall be required to coordinate such efforts with the City Inspector and to plan accordingly to ensure the required construction phasing requirements are met. Final AC base paving shall be placed and compacted on areas of Localized Patching on the same day as its removal and shall be installed in a single 4 inch lift. 302-5.4 Tack Coat The contact surfaces of all cold pavement joints, curbs, gutters, etc. shall be painted with Grade SS -1 h emulsified asphalt immediately before the adjoining A.C. pavement is placed. Additionally, tack coat shall be applied to all cold milled surfaces and all paving joints (not just cold joints). It shall be applied between base and surface courses when the surface course is not placed immediately after the base course, and to existing horizontal and vertical concrete surfaces against which paved surfaces where new asphalt concrete overlaps or abuts existing pavement. Tack coat shall be applied with complete and uniform coverage and shall not be over sprayed onto adjacent pavement when applying. 302-5.6 Rolling Rolling along a joint shall be such that the widest part of the roller is on the hot side of the joint. 302-5.8.1 Adjustment of Water Valve Covers. Existing valve covers shall be adjusted to grade by the Contractor per City of Seal Beach Public Works Department Standards and Specifications for water valve construction. Water valves shall be protected in place and shall be accessible at all times during construction. I Pdbllo works The Contractor shall notify the City Public Works Department — Water Division forty-eight (48) hours prior to the beginning of work. Removals The Contractor shall dispose of all excess or waste material and shall include all fees for such disposal in the appropriate Bid items. Non -reinforced concrete and asphalt wastes generated from the job site shall be disposed of at a facility that crushes such materials for reuse and the Contractor's expense. Excess soil and other recyclable solid wastes shall not be disposed of at a sanitary landfill. The Contractor shall maintain tonnage records of total solid wastes generated and solid wastes disposed of at a sanitary landfill. The Contractor shall report said tonnage monthly to the Engineer on a form provided by the Engineer and provide appropriate confirmation documentation from the recycling facility. Improvements removed without prior approval of the Engineer are subject to replacement at the Contractor's cost. Sidewalks to be removed to nearest score line or joint. ASPHALT CONCRETE PAVEMENT Asphalt pavement shall be removed to neatly sawed edges as required by the Engineer. Saw cuts shall be full depth. Where only the surface of existing asphalt pavement is to be removed, the method of removal shall be approved by the Engineer, and a minimum laying depth of 1 inch of new pavement material shall be provided at the join line. Where asphalt pavement adjoins a trench, the edges adjacent to the trench shall be saw cut to neat straight lines before resurfacing to ensure that all areas to be resurfaced are accessible to the rollers used to compact the subgrade or paving materials. Signing & Striping Pavement markers shall comply with Section 81-3, "Pavement Markers", of the 2018 Caltrans Standard Specifications (Caltrans) and the CA MUTCD (Latest Edition). Glass beads, paint for striping and pavement markings, and thermoplastic material shall comply with Section 84, "Markings", of the 2018 Caltrans Standard Specifications (Caltrans) and the CA MUTCD (Latest Edition). Temporary striping shall be Rapid Dry paint. Final striping material will be determined by the City. The Contractor shall include all costs associated with the restoration of disturbed signing and striping in the appropriate Bid items. Traffic Control The Contractor shall maintain a safe environment at all times. Appropriate State/City traffic control standards and/or policies shall be adhered to for all Work. All Contactor employees shall have access to and are well - versed with the use of the W.A.T.C.H manual (Work Area Traffic Control Handbook) at all times. Personnel, 10 Pdbllo works vehicles, equipment, etc. shall be properly outfitted/equipped for the Work being performed. Any restrictions, due to the Work that cause travel ways to be less than State/City minimum requirement, shall have appropriate traffic control (in accordance with State specifications, policies, and procedures installed prior to the beginning of Work and remaining until all Work is completed to the satisfaction of the City. All traffic control, at a minimum, shall adhere to requirements of the Work Area Traffic Control Handbook (WATCH Manual). Contractor shall include cost associated with traffic control in the appropriate Bid item. NPDES Regulations The Contractor shall comply with all City, and applicable regulatory agency, regulations regarding NPDES (National Pollution Discharge Elimination System) Requirements and the City's Best Management Practices. Contractor shall not discharge anything to the storm drain system or bodies of water. Contractor shall implement the attached Best Management Practices (BMP's) provided by the City. Contractor shall conduct annual training regarding stormwater regulations and the appropriate BMP's for all employees working at City facilities Contractor shall provide to the City annually, by July 1, with certification of the required training on stormwater regulations and the BMP's, and acknowledgement of adherence to these standards while performing work at the City. Protection of Existina Utilities The Contractor shall take all due precautionary measures to protect all existing utilities. When necessary, the Contractor shall have all utilities located by the responsible agency at least 48 -hours prior to commencing any excavation or utility impacting work. The Contractor's attention is directed to the one -call utility notification service provided by Underground Service Alert (USA) (800)-422-4133. Protection from Damage The Contractor shall protect all public and private property that is not part of Work. Contractor shall protect property and facilities adjacent to and within the work areas. The work area shall be safe, clean, and presentable condition, as determined by the City. All public or privately owned improvements and facilities shall be restored to their original condition and location, or better, using new material only. Contractor shall repair such damage at Contractor's sole expense. Nothing herein shall be construed to entitle the Contractor exclusive use of any public right-of-way or City property. Contractor shall conduct his/her operations so as not to interfere with the authorized work of utility companies or other agencies. Withholding of Payment In the event that deficiencies in the Work or non-compliance with applicable standards are determined by the City, the Contractor will have 24 hours from the time of notification to remedy said deficiency. Deductions from the monthly payment due for Work not performed will be based upon the bid worksheets, which are to be submitted at the time of bid plus mark-up. 11 PEND works IV. PRE -PROPOSAL QUESTIONS For answers to questions or particulars regarding this Request for Proposal, all interested parties are to contact: Iris Lee Deputy Public Works Director/City Engineer Department of Public Works 211 Eighth Street Seal Beach, CA 90740 ilee(cDseaIbeach ca. gov (562) 431-2527 ext. 1322 The City will respond to all questions and requests for clarification received by February 8, 2021. V. SCHEDULE The following dates reflect the anticipated schedule: ■ Request for Proposal Solicitation ■ Pre -Proposal Question Deadline ■ Proposal Submittal Deadline ■ Contractor Interview (if conducted) • Contract Award by City Council ■ Notice to Proceed VI. SUBMITTAL REQUIREMENTS Acceptance of Submittals 1/19/2021 2/8/2021 2/15/2021, 2:OOp.m. March 2021 April 2021 April 2021 Proposals are due by 2:00 PM on February 15, 2021 to the following. Postmarks will not be accepted. Iris Lee Deputy Public Works Director/City Engineer Department of Public Works 211 Eighth Street Seal Beach, CA 90740 ilee(a)sealbeachca.gov (562) 431-2527 ext. 1322 Please submit one (1) unbound original, two (2) bound hard copies, and one (1) electronic copy of the Contractor's Proposal. Proposals received after the date and time listed above will not be accepted or considered for this Project. There is no expressed or implied obligation for City to reimburse firms for any expenses incurred in preparing proposals in response to this request. Materials submitted by respondents are subject to public inspection 12 <,. PArkme works under the California Public Records Act (Government Code Sec. 6250 et seq.). Any language purporting to render the entire proposal confidential or propriety will be ineffective and will be disregarded. The City reserves the right to retain all proposals submitted, and to use any idea in a proposal regardless of whether the proposal was selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in the RFP, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the selected Contractor. All property rights, including publication rights of all reports produced by the selected Contractor in connection with services performed under this Agreement shall be vested in the City. Protest procedures and dispute resolution process shall follow 2 CFR Part 200.318(k), 23 CFR 172.5(c)(18). Information to be Submitted The following information shall be provided, at a minimum: Cover Letter Table of Contents Company Qualifications Local Staffing List Understanding/Approach References Sample Letter Proposal Cost Proposal Exceptions Business Entity DIR Registration Number/Contractor's License Contract Signatories Cover Letter: Cover letter shall not exceed two pages. It shall provide an executive summary of the proposal, and designate the firm's authorized representative regarding this RFP. Table of Contents: The table of contents shall list the following sections with page numbers and information in each section shall be provided. Company Qualifications: Provide a summary of the Contractor's qualifications, including background and experience. Local Staffing List: Provide an organizational chart showing the names, positions, responsibilities, and availability of the individual(s) that would be assigned to this Agreement, including sub -Contractors. Identify the individual(s) authorized to negotiate the contract on behalf of the Contractor's firm and the Contractor's project manager. Understanding/Approach: Describe the Contractor's understanding of the Work requested in this RFP, any key issues that may need special attention. Describe how the Contractor will approach the scope of services and each task needed to complete the project. Any task assumptions and/or exclusions shall be clearly identified. References: Contractor should provide a minimum of five (5) references from public agencies the Contractor has performed work for within the last five (5) years. Information shall include, at a minimum: • Agency name • Scope of work and/or services provided, prime/sub-Contractor. 13 Pdbllo works • Project outcome • Construction value • Dates • Client project manager name, valid telephone number, and email Sample Letter Proposal: Contractor will be required to submit a sample letter proposal providing a template of how the Contractor intends to respond to each Work request. Cost Proposal: Contractors will be required to submit a "Fee & Cost Proposal for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services" as shown in Exhibit A. Additional labor/material rates may be provided in addition to Exhibit A. All rates shall remain for the term of the contract as permitted by law, unless specifically detailed as a supplement to Exhibit A. The Method of Payment of the Contract will be Time and Material. Exceptions: The Contractor shall review this RFP and attached sample contract. Exceptions to any portion of the RFP and/or City's standard agreement will need to be clearly identified. Identification of exceptions does not constitute City concurrence and acceptance. Exceptions may be negotiated with the top-ranked firm. Business Entity: Clearly indicate the firm's business entity type (i.e., a California corporation). DIR Registration/Contractor's License: Clearly indicate the Contractor's Department of Industrial Relations registration number for the prime/sub-Contractor, and provide the Contractor and sub -Contractor's license information. Contract Signatories: Provide the two binding signatories for the firm, pursuant to California Corporation Code Section 313. 1y/ 1 4 V_1►11Zd9%'I Mill In preparing the fee and cost proposal for this project, the Contractor shall take into consideration the following: 1. Compensation for services, and any optional tasks, provided will be on a time -and -materials. 2. Fee proposal and billing rates shall remain effective for the term of the Agreement. Any anticipated billing/rate adjustments shall be clearly identified in the Proposal and shall not be made more than once each calendar year. 3. The Contractor's standard, overtime, and double-timing, billing rates for all classifications of staff likely to be involved shall be included with the fee proposal along with the mark-up rate for any expenses and sub - Contractors. Any anticipated fee adjustments shall be clearly noted. 4. The City will negotiate the final fee with the top-ranked Contractor, if necessary. 14 Pdbllo works VIII. INTERVIEW Top ranked Contractor team(s) may be interviewed by the selection committee. Proposed key personnel from the Contractor's team may be requested to present the teams' and their qualifications at an interview. IX. SELECTION PROCESS Proposals will be evaluated on the basis of the response to all provisions of this RFP. Since this solicitation is an RFP as opposed to a Bid, pricing alone will not constitute the entire selection criteria. The City may use some or all of the following criterion in its evaluation and comparison of proposals submitted. The criteria listed are not necessarily an all-inclusive list. The order in which they appear is not intended to indicate their relative importance. The City reserves the right to modify the evaluation criterion and percentage of score as deemed appropriate prior to the commencement of evaluation. The City reserves the right to determine whether or not a proposal meets the specifications and requirements of this RFP and reject any proposal that, in the City's sole opinion, fails to meet the detail or intent of the requirements. The City reserves the right to reject any and all proposals. POTENTIAL EVALUATION CRITERIA 1. Completeness of Response (Pass/Fail) Responses to this RFP must be complete. Responses that do not include the proposal content requirements identified within this RFP and subsequent addenda and do not address each of the requested items will be considered incomplete, may be rated a Fail in the Evaluation Criteria, and may receive no further consideration. 2. Qualifications & Experience (35 points) a. Local Presence - A statement addressing firm's ability to respond in emergencies and effectively conduct the Work for the City based on the Firm's location. b. Relevant experience, specific qualifications, and technical expertise of the Contractor and sub -Contractors to perform the work. c. Experience working in a coastal community and urban environment. d. Contractor's experience working in the public sector and knowledge of public sector procurement processes, in particular City of Seal Beach standards, processes, and policies. e. Quality of references from at least five (5) agencies the Contractor currently or have previously consulted for in the past five (5) years. 3. Organization & Approach (35 points) a. Contractor's understanding of range of possible emergency and unexpected Work. b. Contractor's ability to deploy the appropriate resources to promptly meet requested emergency and/or non -emergency Work. c. Contractor's availability to complete both small and large scale projects without the compromise of quality, cost, and/or time. d. Contractor's ability to self -perform the requested Work, or forma quality sub -contracting 15 _11&4 4+ p tale works team. e. Contractor's understanding of the nature of public sector work and its decision-making process. 4. Fee (30 points) a. Cost proposal b. Quality of sample letter proposal The City reserves the right to determine whether or not a proposal meets the specifications and requirements of this RFP and reject any proposal that, in the City's sole opinion, fails to meet the detail or intent of the requirements. The City reserves the right to reject any and all proposals. The City reserves the right to put non -emergency and pre -planned projects out for formal bidding. All proposals received as specified will be evaluated by City staff in accordance with the abovementioned. During the evaluation period, the City may do any or all of the following: generate a "short list" and conduct interviews with the top candidates; conduct on-site visits and/or tours of the candidates' places of business. Contractors should be aware that award may be made without Contractor visits, interviews, or further discussion or negotiations. X. SPECIAL PROVISIONS a. Normal working hours will generally be between the hours of 7:30 AM and 5:30 PM, Monday through Friday. During emergencies, work may be required at other than normal hours. The Contractor must receive the approval of the City prior to commencing Work during hours outside those stated above. b. Contractor shall maintain an adequate crew of at least two experienced employees to perform the services required. c. Contractor will be required to supply a list of equipment owned and available for Work. d. Contractor will be required to supply a list of references for similar work performed. e. Contractor will be required to supply a list of sub -contractors, if applicable. f. Contractor will be required to supply additional experience references, if requested. g. Contractor shall provide City with required proof of liability insurance, workman's compensation insurance, vehicle insurance, and City business license as noted in the contract. h. Contractor shall be responsible for Contractor's compliance in all respects with the prevailing wage rates to all the laborers involved, and with California Labor Code Section 1770 et seq., including the keeping of all records required by the provisions of Labor Code Section 1776 and the implementing administrative regulations. The City shall be a third party beneficiary of the forgoing covenant with rights to enforce the same as against the Contractor. 16 �sf4c f� 4 4+ p tale works i. Hourly rates and unit prices quoted shall include all safety equipment required. Traffic control may be required on some sites, and shall be included in quoted prices. j. Hourly rates for emergency work shall be for actual time spent on the job site. No travel time will be paid. k. At any time prior to proposal due date, Contractor may inspect City property for further information, if desired. City representatives will be available if desired to answer questions. I. Contractor shall protect any and all public and private property adjacent to work areas. Any damage resulting directly or indirectly from Contractor's actions shall be the responsibility of the Contractor. m. Contactor shall adhere to all Cal -OSHA rules and regulations for any and all Work performed under this Contract. n. Contractor must be able to provide a list of employee's names, dates worked and hours worked on each date if requested by the City. PFP.qCINNFI The Contractor shall use and furnish all labor necessary for the satisfactory performance for the Work set forth in this Agreement. a. Contractor's Laborers The Contractor shall require each of his/her employees to adhere to basic standards of working attire. These are to include uniforms with the Contractor's company name or insignia clearly visible, proper shoes and other gear required by State Safety Regulations, and proper wearing of clothing, which includes that shirts shall be worn at all times. b. Typical Tasks Contractor shall supply laborers with the necessary skills to perform duties in connection with pavement marking maintenance. c. Licenses Contractor shall possess a valid Contractor's "A" License issued by the Department of Consumer Affairs — Contractors State License Board by the time of proposal submittal and shall remain valid for the term of the Agreement. Contractor shall have a valid City of Seal Beach business license for the term of the Agreement, if selected. Laborers will be required to possess a valid and current California Driver License, including all insurances as required by the City. d. Knowledge and Abilities The Contractor's representative shall have a general knowledge of the asphalt pavement industry, including suitable experience in the field to perform the required work in a safe and thoughtful manner 17 �sf4c f� 4 4+ p tale works EQUIPMENT The contractor shall use and furnish all equipment necessary for the satisfactory performance of the Work set forth in this Agreement. a. Vehicles Contractor shall display the name of their firm on any/all vehicles used or otherwise by the Contractor's employees. b. Maintenance All equipment used by the Contractor shall be maintained in a good operable mechanical condition. All equipment shall be properly adjusted, from an operational safety standpoint. c. Storage of Equipment The Contractor is required to supply storage for equipment that is used in the City. Equipment shall not be stored in the public right-of-way or on any City property without written authorization from the City. SUPERVISION The Contractor shall provide such adequate supervision as to furnish ongoing supervision of workmanship and adherence to schedules by the laborers performing the Work. The foreman, or contractor representative, shall check with the City weekly as to (1) schedule of Work; (2) complaints; and (3) adequacy of performance. The Contractor shall submit such reports as the City may require ensuring compliance with scheduled Work. The foreman shall be onsite while work is in progress. Foremen shall have a minimum of five (5) years of experience in the asphalt pavement field. TELEPHONE, ELECTRONIC MAIL, AND EMERGENCY SERVICE CONTACT INFORMATION The Contractor shall provide the City at all times throughout the duration of this contract emergency telephone numbers of at least two (2) qualified persons who can be called for emergency conditions at any time that Contractor's representatives are not immediately available at the job site. An alternate emergency number shall be provided in case no answer is received at the first number. The emergency number shall be used to contact the Contractor representative who can take the necessary action required to alleviate an emergency condition. In addition, the Contractor shall employ person(s) to answer telephone and e-mail complaints, requests for service, etc. (an answering service will not be considered sufficient for this purpose) during normal City business hours. Normal City business hours are 7:30 A.M. to 5:30 P.M., Monday through Friday. Unless otherwise noted as an emergency, City will coordinate with Contractor to schedule the work with a minimum seven (7) -day prior notification. Contractor is required to provide the City with a 24-hour emergency number for contact outside normal business hours. The response to an emergency call -out by the Contractor 18 Pdbllo works shall not be more than four (4) hours and shall be considered part of the normal contract except when delayed by problems caused by vehicle accidents or Acts of God. XI. GENERAL CONDITIONS A. Signature The Proposal shall be signed by an individual authorized to bind the Contractor. B. Other Considerations: The City shall not be liable for any pre -contractual expenses incurred by any firm considering submitting a proposal in response to this RFP. The City reserves the right to accept or reject any and all proposals, or any part of, or waive any informalities or irregularities. The City reserves the right to withdraw, to cancel this RFP at any time without prior notice and the City makes no representations that any contract will be awarded to any firm responding this RFP. C. Business License Required The Seal Beach Municipal Code requires all businesses operating in the City to obtain a business license and pay a business license tax. For more information, go to www.sealbeachca.gov. D. Prevailing Wage All work performed in connection with execution of this contract work shall be performed in compliance with all applicable laws, ordinances, rules and regulations of federal, state, county or municipal governments or agencies (including, without limitation, all applicable federal and state labor standards, including the prevailing wage provisions of sections 1770 et seq. of the California Labor Code), and (b) all directions, rules and regulations of any fire marshal, health officer, building inspector, or other officer of every governmental agency now having or hereafter acquiring jurisdiction. The Contractor shall indemnify, defend and hold the City harmless from any and all claims, causes of action and liabilities based upon or arising from the failure of any work related to the Agreement to comply with all such applicable legal requirements, including, without limitation, any such claims, causes of action or liabilities that may be asserted against or incurred by City with respect to or in any way arising from the Project's compliance with or failure to comply with applicable laws, including all applicable federal and state labor requirements including, without limitation, the requirements of California Labor Code section 1770 et seq. Contractor agrees that all public work (as defined in California Labor Code section (1720) performed pursuant to this Agreement (the "Public Work"), if any, shall comply with the requirements of California Labor Code sections 1770 et seq. City makes no representation or statement that the project or any portion thereof, is or is not a "public work" as defined in California Labor Code section 1720. In all bid specifications, contracts and subcontracts for any such Public Work, Contractor shall obtain the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work in this locality for each craft, classification or type of worker needed to perform the Public Work, and shall include such rates in the bid specifications, contract or subcontract. Such bid specifications, contract or subcontract must contain the following provision: "It shall be mandatory for the Contractor to pay not less than the said prevailing rate of wages to all workers employed by the contractor in the 19 <,. PArkme works execution of this contract. The Contractor expressly agrees to comply with the penalty provisions of California Labor Code section 1775 and the payroll record keeping requirements of California Labor Code section 1771." E. Registration with the Department of Industrial Relations In accordance with Labor Code Sections 1725.5 and 1771.1, no contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to Section 1725.5 [with limited exceptions for bid purposes only under Labor Code Section 1771.1(a)]. The Department of Industrial Relations Registration Number shall be listed for the Contractor and each subcontractor, if any, in the bid proposal. 20 EXHIBIT B Contractor's Proposal February 08, 2020 City of Seal Beach 211 Eight Street Seal Beach, CA. GM Saver Consintefflon Co., Mise. 13$0 S. Ease Ertl Ave.. Pontana. CA 917616 19091620-9987 F=:=91620-0268 License 44667706 Evaluation Criteria Qualifications and Experience Thank you for the opportunity to be a part of your On -Call Paving Bid opportunity. G.M. Sager Construction has been in business for over 40 years and is now a 2nd generation company. We are a good candidate for this project because we have years of experience performing paving repairs for utility divisions of local cities, and also for water districts who require paving repairs. We have been fortunate to maintain our customer base and take pride in our quality of work. Our workforce consists of approximately 37 employees consisting of Administration staff, mechanics, superintendents, Foremen, and general laborers. A. G.M. Sager is very familiar with Emergencies. We have completed multiple emergency repairs for Cities and Water Companies. Blow outs have been the most common source of emergency work for us. We can open a plant and be mobilized in a short amount of time. B. G.M. Sager has over 30 years of experience with emergency repairs and are very familiar with how to repair and restore paving, concrete, and subgrade failures as a result of an emergency. C. We have done work for Southcoast water district and have experience working adjacent to the coast. We have completed asphalt repairs in Laguna Beach, Dana Point, and Laguna Niguel. Some of these cities are very particular about what they want for their finished asphalt repairs and we were able to appease them and follow the specs. Also, we currently do work for Irvine Ranch Water District and perform work in Newport, Tustin, Silverado Canyon, Irvine, and Lake Forest. Also, we recently performed some asphalt work for the City of Seal Beach about 4 months ago in which the City was pleased. D. We are very familiar with working in the public sector. Our foremen have years of experience dealing with inspectors and following Construction specifications for multiple Cities and agencies. We typically keep specifications for all cities we work in inside a 3 ring binder for reference. We are used to working with the Procurement division within Cities and agencies and have experience with Docusign for signing contracts, task orders, or extensions of contracts. We have dealt with City of Seal Beach on 1 past contract. E. Please see the attached References. Organization and Approach A. G.M. Sager is familiar with the diverse emergency projects that can arise within a Contract. We like a challenge, and are confident that any project that you give to us - we will be able to complete. Furthermore, we will be able to assist in providing a best method of approaching the project. Our Foremen are very experienced and will know the best way to repair the streets and restore things to there proper order. B. G.M. Sager usually takes about 1.5-2 hours to mobilize a crew and have trucks, equipment, laborers, and material ready at a jobsite. C. G.M. Sager has experience with large and small projects. We are used to fixing small asphalt patches ranging from 50 SF to 100 SF, and have the capability to repair larger patches from 50,000 SF — 100,000 Sf. We can do full depth removal and replacement, or perform Milling and capping depending on the requirements. No matter what the size of the asphalt repair is, our quality of work is always the same. We are the best at what we do, and our work speaks for itself. D. G.M. Sager does most all of its work In-house. We do not Subcontract work unless it is out of our scope. Anything to do with Paving, Concrete, grading, Sealing, or striping - we do ourselves. E. We are very familiar with working in the public sector. We are used to the fast paced environment that comes with public works or the public sector, and understand how completing jobs in a timely manner is critical. We always make a best effort to complete the jobs that pertain to our clients in a timely manner and are used to following the requests of inspectors so everyone is happy. TABLE OF CONTENTS COVER LETTER -EVALUATION CRITERIA COMPANY QUALIFICATIONS SECTION 1 LOCAL STAFFING SECTION 2 REFERENCES SECTION 3 FEES AND COST PROPOSAL SECTION 4 UNDERSTANDING APPROACH/ASPHALT REPAIR PROCESS SECTION S BUSINESS ENTITY SECTION 6 CONTRACTOR LICENSE/DIR NUMBER SECTION 7 ADDENDUMS SECTION S SECTION 1 G_ r 1880 t East End IlVe.:Rr nra. �S 19041628-s ul 18=335-4111 ke tse #601196 History - G.M. Sager Construction Company Inc. is a family owned construction company that has been in business for over 38 years. In the late 70's, Gary Sager started G.M. Sager Construction, as the only employee, performing small asphalt repairs. During that time, asphalt was broke with a sledge hammer and removed with a pick. The only equipment used was a small dump truck to transport asphalt and a walk behind roller for compaction. Night work was performed using head lights from an automobile. Today, G.M. Sager is a diversified general engineering construction business with technologically advanced construction equipment, 30-40 employees, and has a wide range of construction capabilities. G.M. Sager is centrally located in Pomona, California and does work in Los Angeles County, Orange County, and the Inland Empire. While most of the work that the business performs comes from cities and utility companies, some work comes through commercial, public and private sectors. Construction Capabilities. 1) Asphalt Construction • "Patch Work" — G.M. Sager is known for our impeccable work performing asphalt Repairs. We take great pride in our craftsmanship and guarantee our patch repairs. • Trench line Paving ■ Parking lot Construction • Moratorium and Arterial Street Construction ■ Inlay Cap using rubberized materials ■ Street Grinding & Pulverizing ■ Slurry Seal — Type I and Type II • Striping 2) Concrete Construction • Curb and Gutter Construction • Cross Gutter Construction • ADA Ramp Construction • Bus Pad Construction • Sidewalk Construction • Reinforced Steel Construction • CMU masonry & block wall construction 3) Grading Construction • Rough Grading/Fine Grading for all soils types • Site Clean-up including spoils removals • MaterialImport/Export • Over excavations • Rock Base — Class II and Crushed Aggregate Base installation and compaction • Soils Testing 4) General Engineering (A) Contractors license G.M. Sager's general engineering contractor's license enables the company to have a broad range of capabilities. We have a wide array of subcontractors that we deal with on a regular basis enabling us to be competitive in price. The following is a list of construction services that we offer our clients. ■ Block Wall and Wrought Iron Construction ■ Traffic Signal and Traffic loop Construction ■ Landscaping and Irrigation ■ Thermoplastic Striping Demolition Construction 5) Administration Personnel G.M. Sager has a strong administration and takes pride in its efficiency. Our number one priority is our customers, and we strive to do our best to appease their demands. Accounts Payable/Receivables is at the top of our list of priorities, _and -we -do_ -aur hest to -provide our-customers--with-timely-payments-and pro-vide--iav-oices-onmtime—Pro-viding--proposals and quotes is equally important, and we are committed. Janice Lipscomb has been with G.M. Sager since 2000 and handles all Job Invoicing, is in charge of Human Resources, General Office & Safety Coordinator, and Insurance. Mary Ellen Sheppard has been with G.M. Sager since 2012 and handles all Proposal/Bid preparations, Work Orders, Field Communications, Account Receivables, Account Payables, Payroll Processing, Notary, and English/Spanish translation. 6) Companv Location G.M. Sager is located off the 60 Fwy in Pomona, California. The current address Is 1380 S. East End Ave., Pomona, CA 91766. 7) Emeraency Repair Services G.M. Sager is known for its excellent 24 hour emergency repair service. Any hour of the day or night, G.M. Sager can mobilize a crew and have a concrete/asphalt plant opened. Our specialty is helping local cities and municipalities with emergency leaks (blowouts) or asap repairs. G.M. Sager brings all necessary equipment to assist In-house crews with their repairs so they can get utilities back online. Typically, our job is to get the streets back in working condition in the shortest amount of time. SECTION 2 Michael Sager Chief Operations Officer, Vice President California State Polytechnic University, Bachelor of Science Civil Engineering, 2002 EIT Exam, 2002 General Engineering Contractors License, A, 2003 Experience Michael has over 18 years experience in Engineering and Construction with the last 15 years with G.M. Sager Construction Co., Inc. Engineering Don Howard Engineering, 2001-2002 Lee & Ro Inc. Environmental Engineering, 2002-2004 Construction G.M. Sager Construction Co., Inc. 2004 -Present Skills • Ability to multitask daily operations in the field and administration. ■ Ability to read plans and specifications for utility construction projects. ■ Ability to design projects with the use of automated drawing programs. ■ Ability to work efficiently with fellow employees and clients. • Ability to speak company objectives clearly and obtain its goals. ■ Ability to oversee and assist company functions of administration, project bidding and estimation, field crew operations, and equipment & maintenance upkeep. Experience: Skill: Francisco Tovar Field Supervisor, Safety Representative, Mechanic, Heavy Equipment Operator, Estimator, Project Manager Francisco Has Over 15 Years In The Asphalt & Concrete Construction Industry, The Last 8 Years At G.M. Sager Construction Co., Inc. Francisco Began to Attain His Abilities Working in the Asphalt & Concrete Business at a Young Age Working With Family & Friends He Went To Work in The Asphalt & Concrete Industry. Where He Learned All The Areas Of Asphalt Construction & Repair And The Repair And Operation Of All Paving Equipment, Including But Not Limited To: Skiploaders, Skidsteers, Paving Machines, Forklifts, Etc. As Well As Obtaining His Commercial Class A Driver's License, Francisco Is Skilled In All The Areas Of Asphalt & Concrete Construction, Landscaping And Operation Of Heavy Equipment. He Is Also Proficient In Safety/OSHA Requirements, Traffic Control Design, The Estimating & Calculating Of Labor & Materials Required In The Installation Of Hot Mix Asphalt, Crushed Aggregate Base, Concrete, Dirt, Etc. As Well As The Application of Slurry Coating And Street/Parking Lot Striping. He Came To G.M. Sager Construction Co., Inc. In 2011 And Worked His Way Up Through The Different Aspects And Levels Of Asphalt And Concrete Construction To Where He Is Today, A Supervisor & Manager. 1380 S. EAST END AVENUE, POMONA CA 91766 TEL. (909) 620-9987 * FAX (909) 620-5288 LIC #607796 ♦ DIR#1000010280 COMPANY FIELD STAFF Ramon De Alba (951) 232-4495 Jose Vega (951) 232-7935 Superintendent OR Project Manager 15 Years of Experience 31 Years of Experience Francisco Tovar (909) 524-8554 Construction Supervisor Tony Rojas Oscar Medina Angela Satki Gerardo Arreguin Rosalio Barragan (951) 232-4974 (951) 232-7109 Accounts Payable (951) 455-8863 (951) 232-4832 Asphalt Crew Leader Asphalt Crew Leader 25 Years of Experience Asphalt Crew Leader Asphalt Crew Leader 22 Years of 6 Years of 2 Years of Experience 20 Years of 28 Years of Experience Experience Experience Experience Efrain Torres Jose Garcia Concrete Crew Leader Concrete Crew Leader 22 Years of Experience 16 Years of Experience COMPANY ADMINISTRATION STAFF Michael Sager Vice President (909) 620-9987 Estimating/Sales 16 Years of Experience MaryEllen Sheppard Janice Lipscomb Angela Satki (909) 620-9987 (909) 620-9987 (909) 620-9987 Accounts Payable Human Resources DIR-Processing Account Receivables 25 Years of Experience Invoicing HR/Payroll 2 Years of Experience 20 Years of Experience SECTION 3 i 131 Ongoing Contracts Over 3 Yrs Azusa Light & Water Tel. (626) 812-5086 P.O. Box 9500, Azusa, Ca 91702-9500 Ken Godbey $ 250,000.00 per year Valley County Municipal Water District (.626).:33.8-7302 14521 Ramona Blvd., Baldwin Park, Ca 91706 Tom Mortenson $ 175,000.00 per year City of Chino Hills (909)364-2854 14000 City Center Drive, Chino Hills, CA 91709 Marl Wiley $ 500,000.00 per year Suburban Water Systems (626)703-6775 1325 N. Grand Ave, Suite 100, Covina, Ca 91724 Pat Pooler $ 600,000.00 per year Irvine Ranch Water District (714)329-8673 P.O. Box 57000, Irvine, CA 92619 Dave Crowe $450,000.00 per year Rowland Water District Tel. (562) 697-1426 3021 S. Fulleron Rd., Rowland HeightsCA 91748 Tom Coleman $175,000.00 per year Jurupa Community Services Dept. (951)..685-7434 11201 Harrel St., Mira Loma, Ca 91752 Dave Irish $ 350,000.00 per year Fontana Water (909) 201-7321 P.O. Box 987, Fontana, CA 92334-0987 Daryl Arnett $650,000.00 per year Cucamonga Valley Water District (909) 987-2591 10440 Ashford St., Rancho cucamonga, Ca 91729 Robert Koczko $ 125,000.00 per year Yorba Linda Water District (714)231-0258 913 S. Richfield Rd., Placentia, CA 92870 Harold Hulbert $150,000.00 per year SECTION 4 FEE & COST PROPOSAL FOR ON-CALL EMERGENCY AND UNEXPECTED TASK ASPHALT MAINTENANCE REPAIR SERVICES (additional laharlequipmenilmaterial rates may be addedlclarified with a separate attachment) MOBILIZATION COST $1.500.00 /TASK ORDER M I N I M U M CALL U U I (in dollars or hours, if applicable) $1,500.00 EQUIPMENT NO. DESCRIPTION UNIT OF MEASURE UNIT PRICE DESCRIPTION E1 Pick -Up Truck HOUR $ 50.00 50.00 E2 Crew Truck HOUR $ 70,00 50.00 E3 Flatbed Truck HOUR $ 70.00 50.00 E4 Bed Trailer HOUR $ 30.00 50.00 E5 Bobcat HOUR $ ] WOO 50.00 EG Small Excavator HOUR $ 200.00 50.00 E7 Medium Excavator HOUR $ 200.00 50.00 E8 Large Excavator HOUR $ 300.00 50.00 IrWA PEM Wx*8 E9 Backhoe HOUR $ 94.00 90.04 E'.E0 Dump Truck/Super 10 HOUR $ 125.00 125.00 Ell Truck and Pup HOUR $ 100.00 100.00 Ell, Water Truck HOUR $ 100.00 100.00 E14 Sweeper HOUR $ 200.00 200.00 E15 Wheel Loader HOUR $ 200.00 200.00 E16 Skip Loader HOUR $ 90.00 90.00 E17 Air Compressor w/Jack Hammer HOUR $ 30.00 30'00 E18 Hydraulic Breaker HOUR $ 90.00 90.00 E19 Asphalt Paver HOUR $ 350.00 350.00 E22 Compaction Wheel HOUR $ 100.00 100.00 E23 Wacker HOUR $ 30.00 34.00 E24 Vibratory Compactor HOUR $ 80,00 80.00 E25, Generator HOUR $ 30.00 30.00 E26 Sawcutter HOUR $ 200.04 200.00 23 NO. DESCRIPTION STANDARD OVERTIME DOUBLE TIME L1 Superintendent $ 70.60 $ 90.00 $ 120.00 L2 Project Manager $ 70.00 $ 90.00 $ 120.00 1,3 Foreman/Operator $ 70.00 $ 90.00 $ 120.00 L4 Foreman/Laborer $ 70.00 $ 90.00 $ 120.00 L,5 Operator $ 70.00 $ 90.00 $ 120.00 Lb Laborer $ 70.00 $ 90.00 $ 120.00 MATERIAL NO. DESCRIPTION UNIT PRICE M1 AC $80.00 /TON M2 AB $100.00 /TON M3 Slurry Seal $2.00 ISF MIN, $4.800.00 M4 Concrete $600.00/CY 24 Mile warxs MARK-UP FOR ITEMS NOT NOTED ABOVE NO. DESCRIPTION PERCENTAGE 01 Material 15 % Oi Equipment/Rental 15 °/fl 03 Labor/Subcontractor 15 % ADJUSTMENTS Provide any anticipated rate/cost adjustments as a separate attachment, if necessary. 25 SECTION 5 ASPHALT REPAIR PROCESS 1. A 24-HOUR NOTICE MUST BE GIVEN TO THE PUBLIC WORKS INSPECTOR. 2. SET UP TRAFFIC CONTROL IN COMPLIANCE WITH THE "WORK AREA TRAFFIC CONTROL HANDBOOK". 3, SAW CUT A CLEAN, STRAIGHT, VERTICAL EDGE APPROXIMATELY 12" BEYOND THE EDGE OF THE REPAIR SECTION. ALL LIQUIDS GENERATED BY SAW CUTTING SHALL BE VACUUMED AND LEGALLY DISPOSED OF IN COMPLIANCE WITH THE FEDERAL CLEAN WATER ACT. SAW CUTTING MUST BE COMPLETED IN ADVANCE OF PAVEMENT REPAIR. 4. REMOVE THE REPAIR SECTION TO A DEPTH OF 1" GREATER THAN THE EXISTING PAVEMENT, BUT NO LESS THAN 4". 5. COMPACT SUBGRADE TO A MINIMUM OF 95% RELATIVE DENSITY. 6. APPLY AN EVEN SS1 HCOAT TO DRY AND CLEANED VERTICAL EDGES, 7. APPLY BASE COURSE USING (3/4") Pg 64-10 ASPHALT AND COMPACT TO MAXIMUM DENSITY, LEAVING COMPACTED SURFACE 1" BELOW FINISH GRADE. 8. ALLOW A MINIMUM OF 72 HOURS BEFORE APPLYING FINISH CAP. 9. APPLY AN EVEN HOT TACK COAT TO EDGES AND SURFACE TO BE CAPPED. 10 APPLY (1") FINISH CAP USING (3/8") Pg 64-10 ASPHALT AND COMPACT TO MAXIMUM DENSITY. 11 APPLY SEAL COAT TO FINISHED EDGES USING SS1 H EMULSION. 12 APPLY #30 SILICA SAND TO EDGES OF FINISHED PAVEMENT. 13 THE FINISH SURFACE SHALL EXHIBIT A SMOOTH, UNIFORM APPEARANCE, FREE OF VOIDS AND SEGREGATION. 14. TRAFFIC CONTROL IS TO REMAIN IN PLACE UNTIL THE NEW PAVEMENT IS ALLOWED TO COOL TO A POINT THAT IT CAN SUSTAIN MOTOR VEHICLES WITHOUT SCUFFING OR RUTTING. * PLEASE NOTE: ALL FINISHED REPAIRS SHALL BE WITHIN .125" OF EXISTING ASPHALT SURFACES. ALL PAVEMENT CONSTRUCTION SHALL BE COMPLETED WITHIN 14 DAYS OF "NOTICE TO PROCEED". oar 0 iR 7 -PAT- 2. Saw cut and vacuum wastes in preparation for asphalt repair. G.M. SAGER CONSTRUCTION CO., INC. IMP" IF ML lip mums- CF 1 J-1 41 mums- CF 1 J-1 MIN SECTION 6 Secretary of State 1•bh.,�'' ,' (�ortifir�tc of Ct��i is I ALEX PADILLA, Secretary of State of the State of California. hereby certify Entity Name: G,M. SAGER CONSTRUCTION CO., INC. File Number: C1477372 Registration Date: 02/22/1990 Entity Type: DOMESTIC STOCK CORPORATION Jurisdiction: CALIFORNIA Status: ACTIVE (GOOD STANDING) As of January 10 2021 (Certification Date), the entity is authorized to exercise all of its powers; rights and privileges in California. This certificate relates to the statu5'of the entity on the Secretary of State's records as of the Certification Date and does not reflect documents that are pending review or other events that may affect status. No information is available from this office regarding the financial condition. status of licenses, if any business activities or practices of the entity. IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of January 11, 2021. ALEX PADILLA Secretary of State Certificate Verification Number: RPPDKGR To verify the issuance of this Certificate. use the Certificate Verification Number above with the Secretary of State Certification Verification Search available at bebizfJle.sos_ca.c,Llgeilrrlteat+anhr)dex. SECTION 7 'Contractor Information Legal Entity Name G.M. SAGER CONSTRUCTION CO., INC. Legal Entity Type Corporation Status Active Registration Number 1000010280 Registration effective date 7/1/2019 Registration expiration date 6/30/2021 Mailing Address PO BOX 8097 LA VERNE 91750 CA United States— Physical tates—Physical Address 1380 S. EAST END AVENUE POMONA 91766 CA ... Email Address Trade Name/DBA License Number(s) CSLB:607796 Legal Entity Information Corporation Number: C1477372 Federal Employment Identification Number: President Name: GARYSAGER Vice President Name: CAROLE SAGER Treasurer Name: CAROLE SAGER Secretary Name: MICHAEL SAGER CEO Name: GARY SAGER Agent of Service Name: GARY M SAGER Agent of Service Mailing Address: 17880 SKYPARK CIRCLE STE 120 IRVINE 92614 CA United States of America Workers Compensation Registration History Effective Date Expiration Date 6/13/2018 6/30/2019 6/21/2017 6/14/2016 7/7/2015 2/17/2015 7/1/2019 6/30/2018 6/30/2017 6/30/201.6 6/30/2015 6/30/2021 Do you lease employees No through Professional Employer Organization (PEO)?: Please provide your current workers compensation insurance information below: PEO PEO PEO PEO InformationName Phone Email Insured by Carrier Policy Holder Name:G.M. SAGER CONSTRUCTION CO., INC.Insurance Carrier: GuideOne Mutual Insurance CoPolicy Number:01-0.007-042Inception date:12/31/2018 Expiration Date:12/31/2019 Home �U (CONTRACTORS STATE UCENSE BOARD r OContractor's License Detail for License # 607796 DISCLAIMER: A license status check provides information taken from the CSLB license database. Before relying on this information, you should be aware of the following limitations. P CSLBcomplaintdisclosure is restricted bylaw(B&P7124,6) If this entity is subject to public complaintdisclosum click on link that will appear below for more information. Click here for a definition of disclosable actions b Only construction related civi(judgments reported to CSLB are disclosed IMP 7071.17). P Arbitrations are not listed unless the contractor falls to comply with the terms, r Due to workload, there maybe relevant information that has not yet been entered into the board's license database. Data current as of 2/8/20212:30:03 PM Business Information G M SAGER CONSTRUCTION CO INC — — _ E.QBDX8fl97 LA VERNE, CA 91750 Business Phone Number:(909) 620-9987 Entity Corporation Issue Date 12/10/1990 Expire Date 12/31/2022 This license is torrent aitd activu- All information below should be reviewed. A- GENERAL ENGINEERING CONTRACTOR License Status Classifications Bonding Information Contractor's Bond This license filed a Contractor's Bond with AMERICAN CONTRACTORS INDEMNITY COMPANY. Bond Number: SC947774 Bond Amount: $15,000 Effective Date: 01/01/2016 Contractor's Bond History Bond of Qualifying Individual The qualifying individual GARY MICHAEL SAGER certified that he/she owns 10 percent or more of the voting stock/membership interest of this company; therefore, the Bond of Qualifying Individual is not required. Effective Date: 12/10/1990 Workers' Compensation This license has workers compensation insurance with the EVEREST PREMIER INSURANCE COMPANY Policy Number:7600022057211 Effective Date: 01/01/2021 Expire Date: 01/01/2022 Workers' Compensation History Other � Personnel listed on this license (current or disassociated) are listed on other licenses. Back to Top Conditions of Use Privacy Policy Accessibility Accessibility Certification Copyright © 2021 State of California SECTION 8 S ReacA Department of Public Works February 8, 2021 Addendum No. 1 On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services Attention all Interested Parties: As the City of Seal Beach will be closed on February 15, 2021 in observance of Presidents' Day, proposals in response to the On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services Request for Proposals shall be received by 2:00 p.m. on Tuesday, February 16, 2021. END OF ADDENDUM By order of the City of Seal Beach, Engineering Division Date Attachments None -( S ca"rn� 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, Contractor 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", Contractor 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. Contractor 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. Contractor shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725.5. Contractor and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If Contractor or any subcontractor ceases to be registered with DIR at any time during the duration of the project, Contractor shall immediately notify City. 4. Pursuant to Labor Code Section 1771.4, Contractor's Services are subject to compliance monitoring and enforcement by DIR. Contractor 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. Contractor acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Contractor shall post such rates at each job site covered by this Agreement. 6. Contractor 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. Contractor 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 Contractor or by any subcontractor. 7. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records. 8. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations, Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor 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, Contractor and each of its subcontractors shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement. 9. Contractor 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. Contractor 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 Contractor or any subcontractor becomes debarred or suspended during the duration of the project, Contractor shall immediately notify City. 10. Contractor acknowledges that eight hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Contractor shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by Contractor 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 Contractor 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, Contractor hereby certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." 12. For every subcontractor who will perform work on the project, Contractor shall be responsible for such subcontractor's compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Contractor 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. Contractor 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. Contractor shall diligently take corrective action to halt or rectify any failure. 13. To the maximum extent permitted by law, Contractor shall indemnify, hold harmless and defend (at Contractor'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 Contractor, 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 Contractor under this Section shall survive the termination of the Agreement. PROFESSIONAL MAINTENANCE AGREEMENT for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 Hardy & Harper, Inc. 32 Rancho Circle Lake Forest, CA 92630 (714) 444-1851 This Professional Maintenance Agreement ("the Agreement") is made as of April 12, 2021 (the "Effective Date"), by and between Hardy & Harper, Inc. ("Contractor"), a California corporation, and the City of Seal Beach ("City"), a California charter city, (collectively, "the Parties"). RECITALS A. City desires certain on-call emergency and unexpected task asphalt maintenance and repair services. B. City desires to engage Contractor to provide on-call emergency and unexpected task asphalt maintenance and repair services in the manner set forth herein and more fully described in Section 1.0. C. Contractor represents that the principal members of its firm are qualified California licensed contractors (License #215952, DIR 1000000076) and are fully qualified to perform the services contemplated by this Agreement in a good and professional manner; and it desires to perform such services as provided herein. NOW THEREFORE, in consideration of the Parties' performance of the promises, covenants, and conditions stated herein, the Parties hereto agree as follows. AGREEMENT 1.0 Scope of Services 1.1. Strictly on an on-call emergency or unexpected task basis, Contractor shall provide those asphalt maintenance and repair services (collectively "Services") set forth in the Request for Proposal (Exhibit A), and Contractor's Proposal (Exhibit B), attached and incorporated herein by this reference. To the extent that there is any conflict between Exhibit A, Exhibit B, and this Agreement, this Agreement shall control. Given the on-call emergency or unexpected task nature of this Contract, Contractor acknowledges that there is no guarantee that City shall request any Services hereunder. 1.2. Contractor 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, Contractor 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, Contractor hereby represents that it has the experience necessary to undertake the Services to be provided. In light of such status and experience, Contractor hereby covenants that it shall follow the customary professional standards in performing all Services. The City relies upon the skill of Contractor, and Contractor's staff, if any, to do and perform the Services in a skillful, competent, and professional manner, and Contractor and Contractor's staff, shall perform the 2of14 Services in such manner. Contractor shall, at all times, meet or exceed any and all applicable professional standards of care. The acceptance of Contractor's work by the City shall not operate as a release of Contractor from such standard of care and workmanship. 1.5. Contractor will not be compensated for any work performed not specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 2.0 Term 2.1. The term of this Agreement shall commence as of the Effective Date and shall continue for a term of three (3) years ("Original Term") and shall expire at midnight on April 12, 2024, unless sooner terminated or extended as provided by this Agreement. 2.2. The City, at its sole option, may elect to extend the Original Term of this Agreement, upon the same terms and conditions, for up to two (2) additional terms of one year each ("extension"), by providing written notice to Contractor at least one month prior to the expiration of an existing term. If timely elected by the City, the first extension shall have a term extending from April 12, 2024 through and including April 12, 2025, unless sooner terminated or extended pursuant to this Agreement. If timely elected by the City, the second extension shall be from April 12, 2025 through and including April 12, 2026, unless sooner terminated pursuant to this Agreement. Any extension shall not be effective except upon execution of a written amendment to this Agreement signed by the City Manager and Contractor's authorized representatives. 3.0 Contractor's Compensation 3.1. City will pay Contractor in accordance with the rates shown on the fee schedule set forth in Exhibit B for the Services assigned by City but in no event will the City pay more than the total not -to -exceed amount of $300,000.00 (Three Hundred Thousand and 00/XX dollars) for the Original Term. 3.2. In the event that City elects to extend the Original Term in accordance with Section 2.2 of this Agreement, City will pay Contractor in accordance with the hourly rates shown on the fee schedule set forth in Exhibit B for Services but in no event will the City pay more than the total not -to -exceed amount of $100,000.00 (One Hundred Thousand and 00/XX dollars) for each extension. 3 of 14 3.3. Contractor will not be compensated for any work performed not authorized by City and specified in the Scope of Services unless the City authorizes such work in advance and in writing. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. Any additional work authorized by the City Council pursuant to this Section will be compensated in accordance with the fee schedule set forth in Exhibit B. 4.0 Method of Payment 4.1. Contractor 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 Contractor within 30 days of receiving Contractor's invoice. City will not withhold any applicable federal or state payroll and other required taxes, or other authorized deductions from payments made to Contractor. 4.2. Upon 24-hour notice from City, Contractor shall allow City or City's agents or representatives to inspect at Contractor's offices during reasonable business hours all records, invoices, time cards, cost control sheets and other records maintained by Contractor in connection with this Agreement. City's rights under this Section 4.2 shall survive for five (5) years following the termination of this Agreement. 5.0 Termination 5.1. 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 30 days prior to the date of termination. 5.2. 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. 6.0 Party Representatives 6.1. The City Manager is the City's representative for purposes of this Agreement. 6.2. Michael Murray is the Contractor's primary representative for purposes of this Agreement. Michael Murray shall be responsible during the term 4 of 14 of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. Contractor may not change its representative without the prior written approval of City, which approval shall not be unreasonably withheld. 7.0 Notices 7.1. All notices permitted or required under this Agreement shall be deemed made when personally delivered or when mailed 48 hours after deposit in the United States Mail, first class postage prepaid and addressed to the party at the following addresses: To City: City of Seal Beach 211 -8th Street Seal Beach, California 90740 Attn: City Manager To Contractor: Hardy & Harper, Inc. 32 Rancho Circle Lake Forest, CA 92630 Attn: Michael Murray 7.2. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 8.0 Independent Contractor 8.1. Contractor is an independent contractor and not an employee of the City. All work or other Services provided pursuant to this Agreement shall be performed by Contractor or by Contractor's employees or other personnel under Contractor's supervision, and Contractor and all of Contractor's personnel shall possess the qualifications, permits, and licenses required by State and local law to perform such Services, including, without limitation, a City of Seal Beach business license as required by the Seal Beach Municipal Code. Contractor will determine the means, methods, and details by which Contractor's personnel will perform the Services. Contractor shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Services and compliance with the customary professional standards. 8.2. All of Contractor's employees and other personnel performing any of the 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 and Contractor's personnel shall not supervise any of City's employees; and City's employees shall not supervise Contractor's personnel. Contractor's personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as 5 of 14 an employee of City; and Contractor's personnel shall not use any City e-mail address or City telephone number in the performance of any of the Services under this Agreement. Contractor shall acquire and maintain at its sole cost and expense such vehicles, equipment and supplies as Contractor's personnel require to perform any of the Services required by this Agreement. Contractor shall perform all Services off of City premises at locations of Contractor's choice, except as otherwise may from time to time be necessary in order for Contractor's personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Contractor's performance of any Services under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform such Services. City may make a computer available to Contractor from time to time for Contractor's personnel to obtain information about or to check on the status of projects pertaining to the Services under this Agreement. 8.3. Contractor shall be responsible for and pay all wages, salaries, benefits and other amounts due to Contractor's personnel in connection with their performance of any 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, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, State, or federal policy, rule, regulation, statute or ordinance to the contrary, Contractor and any of its officers, employees, agents, and subcontractors providing any of the Services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System ("PERS") as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits. 8.4. 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 liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Contractor's personnel practices. or to the extent arising from, caused by or relating to the violation of any of the provisions of this Section 8.0. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Contractor under this Agreement 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. This duty of indemnification is in addition to Contractor's duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. 6 of 14 9.0 PERS Compliance and Indemnification 9.1. General Requirements. The Parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform any work or other Services under this Agreement, Contractor shall assure compliance with the Public Employees' Retirement Law, commencing at Government Code § 20000, the regulations of PERS, and the Public Employees' Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations. 9.2. Indemnification. Contractor shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from, caused by, or relating to Contractor's violation of any provisions of this Section 9.0. This duty of indemnification is in addition to Contractor's duty to defend, indemnify and hold harmless as set forth in any other provision of this Agreement. 10.0 Confidentiality Contractor covenants that all data, documents, discussion, or other information developed or received by Contractor or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Contractor without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. All City data shall be returned to City upon the termination of this Agreement. Contractor's covenant under this Section shall survive the termination of this Agreement. 11.0 Subcontractors No portion of this Agreement shall be subcontracted without the prior written approval of the City. Contractor is fully responsible to City for the performance of any and all subcontractors. 12.0 Assignment Contractor 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. 7 of 14 13.0 Inspection and Audit of Records Contractor 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. Contractor 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, Contractor 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. Contractor shall retain all financial and program service records and all other records related to the Services and performance of this Agreement for at least five (5) years after expiration, termination or final payment under this Agreement, whichever occurs later. City's rights under this Section 13.0 shall survive for five (5) years after expiration, termination or final payment under this Agreement, whichever occurs later. 14.0 Safety Requirements All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA. The City may issue restraint or cease and desist orders to Contractor when unsafe or harmful acts are observed or reported relative to the performance of the Services. Contractor shall maintain the work sites free of hazards to persons and property resulting from its operations. Contractor shall immediately report to the City any hazardous condition noted by Contractor. 15.0 Insurance 15.1. Contractor shall 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 shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements shall be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 15.2. Contractor shall, at its expense, procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of this Agreement. Insurance is to be placed with insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in California, and satisfactory to the City. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers' Compensation and Employer's Liability coverages. Contractor 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) Workers' Compensation in the amount required by law and Employer's Liability: $1,000,000 per accident and in the aggregate for bodily injury or disease. 15.3. The insurance policies shall contain the following provisions, or Contractor 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 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 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 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. 15.4. All insurance required by this Section shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. 9 of 14 15.5. Any deductibles or self-insured retentions shall 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. 16.0 Indemnification, Hold Harmless, and Duty to Defend Contractor and the City agree that the City, its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively "Indemnitees" in this Section 16.0) should, to the fullest extent permitted by law, be fully protected from any loss, injury, damage, claim, liability, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs and/or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to the City and all other Indemnitees. Contractor acknowledges that the City would not have entered into this Agreement in the absence of the commitment of Contractor to indemnify and protect the City and the other Indemnitees, as set forth in this Agreement. 16.1. Indemnity. To the fullest extent permitted by law, the Contractor 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 16.0) from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys and other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively "Claims"), in law or equity, whether actual, alleged or threatened, which arise out of, pertain to, or relate to the acts or omissions, or willful misconduct, of the Contractor, and/or its officers, agents, servants, employees, subcontractors, materialmen, suppliers, or contractors, or their officers, agents, servants or employees (or any entity or individual that the Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Claims arising from the sole negligence or willful misconduct of Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. The Contractor 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. The Contractor shall 10 of 14 reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith. 16.2. Subcontractor Indemnification. Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section 16.0 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnities, Contractor 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 Contractor's subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor's subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees' active or passive negligence, except for Claims or Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. 16.3. The obligations of Contractor under this or any other provision of this Agreement shall not be limited by the provisions of any workers' compensation act or similar act. Contractor expressly waives any statutory immunity under such statutes or laws as to the Indemnitees. Contractor's indemnity obligation set forth in this Section 16.0 shall not be limited by the limits of any policies of insurance required or provided by Contractor pursuant to this Agreement. 16.4. Contractor's covenants under this Section 16.0 shall survive the expiration or termination of this Agreement. 17.0 Equal Opportunity Contractor affirmatively represents that it is an equal opportunity employer. Contractor shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non-discrimination includes, but is not limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. 18.0 Labor Certification By its signature hereunder, 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 Workers' Compensation or to undertake self-insurance 11 of 14 in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 19.0 Prevailing Wage and Payroll Records If this Agreement calls for services that, in whole or in part, constitute "public works" as defined in the California Labor Code, then Contractor 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. 20.0 Entire Agreement This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. This Agreement may only be modified by a writing signed by both Parties. 21.0 Severability The invalidity in whole or in part of any provisions of this Agreement shall not void or affect the validity of the other provisions of this Agreement. 22.0 Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California. 23.0 No Third Party Rights No third party shall be deemed to have any rights hereunder against either party as a result of this Agreement. 24.0 Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 25.0 Prohibited Interests; Conflict of Interest 25.1. Contractor 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. Contractor further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Contractor shall 12 of 14 avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. 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. 25.2. 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. 25.3. 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 26.0 Attorneys' Fees If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party all of its attorneys' fees and other costs incurred in connection therewith. 27.0 Exhibits All exhibits referenced in this Agreement are hereby incorporated into the Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Agreement, the terms of this Agreement shall control. 28.0 Corporate Authority The person executing this Agreement on behalf of Contractor warrants that he or she is duly authorized to execute this Agreement on behalf of said party and that 13 of 14 by his or her execution, the Contractor 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. Attest: In Jill R. Ingram, City Manager Gloria D. Harper, City Clerk Approved as to Form: By: ig . Steele, City Attorney CONTRACTOR: Hardy & Harper, Inc., a California corporation /J w IN Michail"ray \4ce PfsiAnt Kristen Paolino Secretary (Please note, two signatures required for corporations pursuant to California Corporations Code Section 393 from each of the following categories: (i) the chairperson of the board, the president or any vice president, and (ii) the secretary, any assistant secretary, the chief financial officer or any assistant treasurer of such corporation.) 14 of 14 EXHIBIT Request for Proposal City of Seal Beach Request for Proposals for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services RFP responses to be received until 2:00 P.M., February 15, 2021 in the Public Works Department ATTN: Iris Lee, Deputy Director of Public Works/City Engineer Approved for Advertising: Iris Lee City Engineer Date Issued: January 19, 2021 P We works Table of Contents I. INTRODUCTION II. QUALIFICATIONS III. SCOPE OF SERVICES IV. PRE -PROPOSAL QUESTIONS V. SCHEDULE VI. SUBMITTAL REQUIREMENTS VII. FEE & COST PROPOSAL VIII. INTERVIEW IX. SELECTION PROCESS X. SPECIAL PROVISIONS XI. GENERAL CONDITIONS EXHIBIT A — Fee & Cost Proposal EXHIBIT B — Sample Contract Samples from Exhibit A and Exhibit B from the Request for Proposals were omitted intentionally. <,. PArkme works REQUEST FOR PROPOSALS FOR ON-CALL EMERGENCY AND UNEXPECTED TASK ASPHALT MAINTENANCE REPAIR SERVICES ALL INTERESTED PARTIES MUST REGISTER BY EMAILING ileensealbeachca.gov. COMMUNICATION AND ADDENDA, IF ANY, WILL BE DISTRIBUTED TO REGISTERED PARTIES VIA EMAIL PROVIDED. I. INTRODUCTION The City of Seal Beach ("City") owns and maintains approximately 41.8 centerline miles of pavement along with a network of alleyways, of which most are constructed of asphalt pavement. The City is seeking one or more contractors who would be available to provide on-call asphalt repair services in both emergency and unplanned situations, for an anticipated term of three (3) years. The final agreement amount and term will depend on the quality, diversity, responsiveness of the received proposals, and the future need for emergency and unexpected task work. Work shall comply with the Standard Specifications for Public Works Construction (latest edition, unless otherwise noted), City of Seal Beach standards and provisions, Caltrans Standard Specifications, and any Agencies Having Jurisdiction (AHJ's). Due to the on-call/emergency nature of this contract, no work is guaranteed, even if awarded. The scope, work schedule, and cost for each requested emergency or unexpected task will be negotiated on a project -by -project basis, based on the rates specified in the response. The City reserves the right to not accept the Contractor's proposed scope and fee, and to let any project for competitive bid at the discretion of the City. II. QUALIFICATIONS Minimum Qualifications • Valid California Contractor's Class A (General Engineering) license issued by the Department of Consumer Affairs — Contractors State License Board by the time of proposal submittal and shall remain valid for the term of the Agreement. • Valid City of Seal Beach business license for the term of the Agreement, if selected. Minimum ten (10) years of professional asphalt maintenance and repair service experience. • Ability to mobilize and respond to emergency job sites, as necessary within the time frames provided in this RFP. 3 <,. PArkme works • Maintain, or have the ability to quickly acquire, all necessary labor, equipment, and material to promptly complete the Work. Desirable Qualifications • Knowledge and experience with the City of Seal Beach's standards, provisions, and practices. • Familiarity with public sector on-call maintenance and repair contracts. • Adequate availability of key team members and equipment. III. SCOPE OF SERVICES Work to be done consists of furnishing all labor, supervision, methods of processes, implements, tools, machinery, safety equipment, traffic control, materials and proper licensing required to identify, list, and perform asphalt maintenance and repair services in those areas designated by the City on an emergency or unexpected task basis. Due to the on-call/as-needed nature of this Agreement, Work may vary according to the need and there is no guarantee that work will be assigned. The Contractor shall furnish and maintain records designating exact locations and areas of repairs and maintenance. Such reports shall be signed by the Contractor and the City. If the City determines that the Contractor has not satisfactorily performed the Work, payment will be withheld for said Work until such time the Work is completed to the satisfaction of the City. All work for which progress payment is made shall be reported on and certified according to the foregoing procedure, and in addition thereto, the City shall certify that the Work has been inspected and completed to the satisfaction of the City prior to payment. The Contractor shall be responsible for timely payment of any subcontractor, materialmen, workers and suppliers. Authorization of Work Unless otherwise noted as an emergency, City will coordinate with Contractor to schedule the work with a minimum seven (7) -day prior notification. In an emergency, Contractor shall respond and mobilize within four (4) hours after initial request from the City for Work under this contract. Contractor shall perform the on-call services described in the Section III - Scope of Services ("Services" or "Work"). Upon written request from the City, Contractor shall provide a "letter proposal" for Services requested by the City (hereinafter referred to as the "Letter Proposal"). At a minimum, the Letter Proposal shall include, but is not limited to, the following: • A detailed description of the Work to be provided; • The estimated number of hours, by task, and cost to complete the Work; and 4 Pdbllo works • A detailed Work schedule. No Services shall be provided until the City has provided written acceptance of the Letter Proposal, unless in an emergency situation after Contractor has received a written notice to proceed from the City Engineer or designee. Once authorized to proceed, Contractor shall diligently perform the duties in the approved Letter Proposal or notice to proceed. Progress of Work Time is of the essence on every aspect of the Work. Work shall proceed in an expeditious and orderly manner. The Contractor shall endeavor to avoid service interruptions to the extent feasible. Wherever possible, Work shall be completely finished prior to proceeding to the next location. Any exceptions shall be approved by the City. Altpmfinns. The City reserves the right to increase or decrease the quantity of any item or portion of the Work or to omit portions of the Work as may be deemed necessary or advisable by the City. The City may make such alterations or deviations, additions to, or omissions from these specifications, as may be determined during the progress of the work to be necessary and advisable for the proper completion thereof. Such alterations or deviations, additions or omissions shall in no way affect or make void the Agreement. Upon written order of the City, Contractor shall proceed with the Work as increased, decreased or altered. Extra Work 1. Extra work shall not be performed without prior written approval by the City unless public safety is immediately at risk. 2. Extra work may be required, and extra time may be granted, by the City as a result of acts of God, vandalism, theft, civil disturbances, accidents, or improvements. 3. If unit prices are not available, payment for extra work will be based on actual cost of labor, plus wholesale cost of materials, plus an industry standard markup not to exceed 15%. Extra services other than those listed in Exhibit A shall be negotiated on a time -and -material basis with a "not to exceed" amount. Acceptance of Work Done The City, at its sole discretion, will make inspections and determine that the Work has been completed in all respects in accordance with these specification, and if applicable, accepted. Billing Form, Records and Reports The Contractor shall maintain a record of all work performed, including but not limited to location, types, and amounts maintained/installed/removed. These records shall list the date(s) of the Work performed. A copy of such record shall be provided to the City upon completion of each Task Order. Contractor shall maintain such record through the term of the Agreement, plus three (3) years after Contract termination. 5 <,. PArkme works The Contractor shall return appropriate and completed Task Orders showing the date and inventory of work performed, signed by an authorized representative of Contractor and attached to each invoice. Contractor shall provide a billing form and progress payment form approved by the City. Method of Work The asphalt repair work shall involve all work necessary to remove and replace asphalt work, as needed to complete the work in place. All Work shall be performed per the Standard Specifications for Public Works Construction (Green Book — latest edition, unless otherwise noted), City of Seal Beach standards and provisions, Caltrans Standards Specifications, and any AHJ's requirements. The Contractor shall ensure all work performed under this contract be in such a manner as to provide maximum safety to the public and their staff. Contractor must comply with all safety standards required by all regulatory agencies including but not limited to: California Division of Occupational Safety and Health (CAL - OSHA), South Coast Air Quality Management District (SCAQMD), and the Orange County Environmental Health Care Agency (OCEHC). This also includes local regulatory compliance set forth by the City of Seal Beach. The City reserves the right to issue restraint, or cease and desist orders to the Contractor when unsafe or harmful acts are observed or reported relative to the performance under this contract. The Contractor shall be responsible and shall take necessary precautions to protect work sites free of hazards and/or damages, until the Work is accepted by the City. Any hazardous conditions noted by the Contractor, which is not a result of his/her operations, shall be immediately reported to the City. Rubbish and construction debris shall be promptly removed from the work area and properly disposed of to an approved disposal site. The Contractor shall provide a self-propelled vacuum -type sweeper, or as approved by the City, as required to maintain Work site cleanliness. After removal operations have been completed, the grounds shall be left in a neat, safe, and presentable condition, to the satisfaction of the City. The Contractor shall verify the location of all utilities prior to any Work, and shall be held liable for all damages incurred due to his/her operations. Materials The following supplements Section 203 — Bituminous Materials in the Greenbook: 203-5 SLURRY SEAL 203-5.1 General Slurry seal shall be emulsion -aggregate slurry (EAS) conforming to section 203-5.4, unless otherwise noted. 203-5.4 Emulsion -Aggregate Slurry (EAS) 203-5.4.1 General Emulsion -aggregate slurry (EAS) shall be Type II-CQS-1 h conforming to section 203-3. 203-5.4.2 Materials Mile works 203-5.4.2.2 Emulsified Asphalt Emulsified asphalt shall be of the quick -set type. 203-5.4.2.4 Latex Latex shall be Ultrapave 65K produced by Textile Rubber and Cement Company, Inc., or equal as approved by the Engineer in advance of ordering the latex additive. It shall be added to the emulsified asphalt by the co -mill method at the emulsion plant at the rate of 2'/2 percent of weight of the emulsified asphalt. Latex -added emulsified asphalt shall be kept in a suspended state by an agitating mixer and mixed every three days. 203-6 ASPHALT CONCRETE. 203-6.4 General. Performance graded (PG) asphalt binder shall be PG 64-10 and conform to Table 203-1.2. Asphalt concrete for finish and leveling courses shall be Type III -C2 -PG 64-10. Asphalt concrete for base courses shall be Type III -132 -PG 64-10. Asphalt concrete for A.C. curbs and berms shall be Type III -D -PG 70-10 with 1% additional binder in a mix design approved by OC Public Works Materials Laboratory per County of Orange, OC Public Works Standard Plan 1805. The contact surfaces of all cold pavement joints, curbs, gutters, etc. shall be painted with Grade SS- 1 h emulsified asphalt immediately before the adjoining A.C. pavement is placed. Finished surface of the new pavement at the edge of gutter shall be flush with the edge of the gutter in all crosswalk areas and shall be 3/8" higher than the lip of gutter in all other area, unless otherwise noted. 203-11 ASPHALT RUBBER HOT MIX (ARHM) 203-11.1 General. Composition and grading for all surface course paving shall be ARHM-GG-C 203-17 CRACK SEAL 203-17.1 General Crack sealing material shall be RW 306 R sealant and per the following specifications: TEST REQUIREMENT Pen @ 77 degrees F (ATSM D-3407) 25(+/-5) Pen @ 115 degrees F (ASTM D-3407) 70 max. Softening Point 210-220 OF Ductility @ 77 degrees F, 5cm/min 30 min Force Ductility 4 max 7 <,. PArkme works Resilience 50-60 Brookfield Viscosity 380 degrees F 20-30 poise Flow @ 140 degrees F 0 max Flexibility (90 degree bend in 2 sec. over 1 1/8 mandrel. No cracks. pass @ 0 °F Construction Methods The following supplements Section 302 — Roadway Surfacing in the Greenbook: 302-1 CRACK SEAL 302-1.1 General After cold milling operations and prior to any paving operations all pavement surfaces shall be inspected, weed abated, and crack sealed/filled. The Contractor shall apply herbicide to all vegetation one week prior to removal and crack sealing. Removal of vegetation shall consist of routing out cracks to ensure proper vegetation removal from all cracks. Cracks shall be cleaned using heat lance at approximately 2800 degrees to destroy any vegetation root or seed that may be left behind to prevent any further growth. The heat lance application will also clean out all dirt, sand, debris, and moisture. 302-1.2 Sealant Application Sealant shall be applied in prepared cracks at a temperature of approximately 380 degrees Fahrenheit. No more than a 2'/2" wide and 1/16" thick strip of material shall be applied to pavement surface. Squeegeeing of sealant will not be acceptable due to the inability to consistently meet the required configuration. Any excess sealant material shall be removed from asphalt surfaces. All cracks greater than 1 -inch shall be tack -coated and filled with hot asphalt concrete, rolled flush, and compacted to 95% minimum. The pavement shall then be cleaned with a power broom. 302-4 SLURRY SEAL SURFACING 302-4.8 Spreading and Application Prior to beginning slurry seal operations, the Contractor shall furnish current licensed weighmaster's certificates indicating the net weight capacity of the aggregate bin of each slurry mixer. Except for partial loads to complete a day's schedule, or for patching, each mixer shall be filled to its rated capacity and the Engineer and the Contractor shall keep a daily count of the number of loads and/or partial loads applied to the streets by each slurry mixer. Each aggregate bin shall have permanent calibration marks in maximum increments of 2 tons. Each slurry crew shall be composed of a coordinator at the Project site at all times, a competent quick -set mixing operator, a competent driver, and sufficient laborers for any handwork, cleanup, and barricading. Slurry shall not be applied prior to 8:00 a.m. and shall not be applied after 1:00 p.m., unless approved by the Engineer. Approval of application after 1:00 p.m. will only be for the purpose of completing the section of Work that is underway. Slurry seal shall be sufficiently cured for vehicle traffic without tracking or damage to the surface by 3:00 p.m. on the same day. M <,. PArkme works In case of damage caused by vehicles and/or pedestrians upon slurry that has not been sufficiently cured, the Contractor shall replace all of the damaged Work at the Contractor's expense and no additional compensation shall be made by the City. Upon completion of the day's slurry seal, streets and parking lots shall be temporarily striped within 24 hours. All Stop Bars shall be temporarily striped on the same day before the street is reopened to traffic. Final striping and marking shall be installed no more than ten (10) Working Days after placement of slurry seal. Prior to applying slurry seal, the Contractor shall clean all work surfaces and remove all loose materials, vegetation, oil, and other foreign material. Additionally all locations with weeds shall be treated by an approved weed -killer before any slurry seal is applied. 302-5.1 General. The top layer of asphalt concrete (finish course) shall be placed in a separate lift. Longitudinal joints between two passes of asphalt concrete shall be along a lane line. Leveling course longitudinal joints shall be offset at least two (2) feet from a lane. Level course longitudinal joints and finish course longitudinal joints shall not be located along the same line. Leveling course transverse joints and finish course transverse joints shall be offset approximately five (5) feet from each other, except at the project paving limits. Localized Pavement Removals & Patching Operations — In areas designated for localized pavement removal and replacement, all such AC removals shall occur AFTER the initial pavement grinding operations have been conducted and a site review has been made with the City to verify the final limits of required removal and replacement. Contractor shall be required to coordinate such efforts with the City Inspector and to plan accordingly to ensure the required construction phasing requirements are met. Final AC base paving shall be placed and compacted on areas of Localized Patching on the same day as its removal and shall be installed in a single 4 inch lift. 302-5.4 Tack Coat The contact surfaces of all cold pavement joints, curbs, gutters, etc. shall be painted with Grade SS -1 h emulsified asphalt immediately before the adjoining A.C. pavement is placed. Additionally, tack coat shall be applied to all cold milled surfaces and all paving joints (not just cold joints). It shall be applied between base and surface courses when the surface course is not placed immediately after the base course, and to existing horizontal and vertical concrete surfaces against which paved surfaces where new asphalt concrete overlaps or abuts existing pavement. Tack coat shall be applied with complete and uniform coverage and shall not be over sprayed onto adjacent pavement when applying. 302-5.6 Rolling Rolling along a joint shall be such that the widest part of the roller is on the hot side of the joint. 302-5.8.1 Adjustment of Water Valve Covers. Existing valve covers shall be adjusted to grade by the Contractor per City of Seal Beach Public Works Department Standards and Specifications for water valve construction. Water valves shall be protected in place and shall be accessible at all times during construction. I Pdbllo works The Contractor shall notify the City Public Works Department — Water Division forty-eight (48) hours prior to the beginning of work. Removals The Contractor shall dispose of all excess or waste material and shall include all fees for such disposal in the appropriate Bid items. Non -reinforced concrete and asphalt wastes generated from the job site shall be disposed of at a facility that crushes such materials for reuse and the Contractor's expense. Excess soil and other recyclable solid wastes shall not be disposed of at a sanitary landfill. The Contractor shall maintain tonnage records of total solid wastes generated and solid wastes disposed of at a sanitary landfill. The Contractor shall report said tonnage monthly to the Engineer on a form provided by the Engineer and provide appropriate confirmation documentation from the recycling facility. Improvements removed without prior approval of the Engineer are subject to replacement at the Contractor's cost. Sidewalks to be removed to nearest score line or joint. ASPHALT CONCRETE PAVEMENT Asphalt pavement shall be removed to neatly sawed edges as required by the Engineer. Saw cuts shall be full depth. Where only the surface of existing asphalt pavement is to be removed, the method of removal shall be approved by the Engineer, and a minimum laying depth of 1 inch of new pavement material shall be provided at the join line. Where asphalt pavement adjoins a trench, the edges adjacent to the trench shall be saw cut to neat straight lines before resurfacing to ensure that all areas to be resurfaced are accessible to the rollers used to compact the subgrade or paving materials. Signing & Striping Pavement markers shall comply with Section 81-3, "Pavement Markers", of the 2018 Caltrans Standard Specifications (Caltrans) and the CA MUTCD (Latest Edition). Glass beads, paint for striping and pavement markings, and thermoplastic material shall comply with Section 84, "Markings", of the 2018 Caltrans Standard Specifications (Caltrans) and the CA MUTCD (Latest Edition). Temporary striping shall be Rapid Dry paint. Final striping material will be determined by the City. The Contractor shall include all costs associated with the restoration of disturbed signing and striping in the appropriate Bid items. Traffic Control The Contractor shall maintain a safe environment at all times. Appropriate State/City traffic control standards and/or policies shall be adhered to for all Work. All Contactor employees shall have access to and are well - versed with the use of the W.A.T.C.H manual (Work Area Traffic Control Handbook) at all times. Personnel, 10 Pdbllo works vehicles, equipment, etc. shall be properly outfitted/equipped for the Work being performed. Any restrictions, due to the Work that cause travel ways to be less than State/City minimum requirement, shall have appropriate traffic control (in accordance with State specifications, policies, and procedures installed prior to the beginning of Work and remaining until all Work is completed to the satisfaction of the City. All traffic control, at a minimum, shall adhere to requirements of the Work Area Traffic Control Handbook (WATCH Manual). Contractor shall include cost associated with traffic control in the appropriate Bid item. NPDES Regulations The Contractor shall comply with all City, and applicable regulatory agency, regulations regarding NPDES (National Pollution Discharge Elimination System) Requirements and the City's Best Management Practices. Contractor shall not discharge anything to the storm drain system or bodies of water. Contractor shall implement the attached Best Management Practices (BMP's) provided by the City. Contractor shall conduct annual training regarding stormwater regulations and the appropriate BMP's for all employees working at City facilities Contractor shall provide to the City annually, by July 1, with certification of the required training on stormwater regulations and the BMP's, and acknowledgement of adherence to these standards while performing work at the City. Protection of Existina Utilities The Contractor shall take all due precautionary measures to protect all existing utilities. When necessary, the Contractor shall have all utilities located by the responsible agency at least 48 -hours prior to commencing any excavation or utility impacting work. The Contractor's attention is directed to the one -call utility notification service provided by Underground Service Alert (USA) (800)-422-4133. Protection from Damage The Contractor shall protect all public and private property that is not part of Work. Contractor shall protect property and facilities adjacent to and within the work areas. The work area shall be safe, clean, and presentable condition, as determined by the City. All public or privately owned improvements and facilities shall be restored to their original condition and location, or better, using new material only. Contractor shall repair such damage at Contractor's sole expense. Nothing herein shall be construed to entitle the Contractor exclusive use of any public right-of-way or City property. Contractor shall conduct his/her operations so as not to interfere with the authorized work of utility companies or other agencies. Withholding of Payment In the event that deficiencies in the Work or non-compliance with applicable standards are determined by the City, the Contractor will have 24 hours from the time of notification to remedy said deficiency. Deductions from the monthly payment due for Work not performed will be based upon the bid worksheets, which are to be submitted at the time of bid plus mark-up. 11 PEND works IV. PRE -PROPOSAL QUESTIONS For answers to questions or particulars regarding this Request for Proposal, all interested parties are to contact: Iris Lee Deputy Public Works Director/City Engineer Department of Public Works 211 Eighth Street Seal Beach, CA 90740 ilee(cDseaIbeach ca. gov (562) 431-2527 ext. 1322 The City will respond to all questions and requests for clarification received by February 8, 2021. V. SCHEDULE The following dates reflect the anticipated schedule: ■ Request for Proposal Solicitation ■ Pre -Proposal Question Deadline ■ Proposal Submittal Deadline ■ Contractor Interview (if conducted) • Contract Award by City Council ■ Notice to Proceed VI. SUBMITTAL REQUIREMENTS Acceptance of Submittals 1/19/2021 2/8/2021 2/15/2021, 2:OOp.m. March 2021 April 2021 April 2021 Proposals are due by 2:00 PM on February 15, 2021 to the following. Postmarks will not be accepted. Iris Lee Deputy Public Works Director/City Engineer Department of Public Works 211 Eighth Street Seal Beach, CA 90740 ilee(a)sealbeachca.gov (562) 431-2527 ext. 1322 Please submit one (1) unbound original, two (2) bound hard copies, and one (1) electronic copy of the Contractor's Proposal. Proposals received after the date and time listed above will not be accepted or considered for this Project. There is no expressed or implied obligation for City to reimburse firms for any expenses incurred in preparing proposals in response to this request. Materials submitted by respondents are subject to public inspection 12 <,. PArkme works under the California Public Records Act (Government Code Sec. 6250 et seq.). Any language purporting to render the entire proposal confidential or propriety will be ineffective and will be disregarded. The City reserves the right to retain all proposals submitted, and to use any idea in a proposal regardless of whether the proposal was selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in the RFP, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the selected Contractor. All property rights, including publication rights of all reports produced by the selected Contractor in connection with services performed under this Agreement shall be vested in the City. Protest procedures and dispute resolution process shall follow 2 CFR Part 200.318(k), 23 CFR 172.5(c)(18). Information to be Submitted The following information shall be provided, at a minimum: Cover Letter Table of Contents Company Qualifications Local Staffing List Understanding/Approach References Sample Letter Proposal Cost Proposal Exceptions Business Entity DIR Registration Number/Contractor's License Contract Signatories Cover Letter: Cover letter shall not exceed two pages. It shall provide an executive summary of the proposal, and designate the firm's authorized representative regarding this RFP. Table of Contents: The table of contents shall list the following sections with page numbers and information in each section shall be provided. Company Qualifications: Provide a summary of the Contractor's qualifications, including background and experience. Local Staffing List: Provide an organizational chart showing the names, positions, responsibilities, and availability of the individual(s) that would be assigned to this Agreement, including sub -Contractors. Identify the individual(s) authorized to negotiate the contract on behalf of the Contractor's firm and the Contractor's project manager. Understanding/Approach: Describe the Contractor's understanding of the Work requested in this RFP, any key issues that may need special attention. Describe how the Contractor will approach the scope of services and each task needed to complete the project. Any task assumptions and/or exclusions shall be clearly identified. References: Contractor should provide a minimum of five (5) references from public agencies the Contractor has performed work for within the last five (5) years. Information shall include, at a minimum: • Agency name • Scope of work and/or services provided, prime/sub-Contractor. 13 Pdbllo works • Project outcome • Construction value • Dates • Client project manager name, valid telephone number, and email Sample Letter Proposal: Contractor will be required to submit a sample letter proposal providing a template of how the Contractor intends to respond to each Work request. Cost Proposal: Contractors will be required to submit a "Fee & Cost Proposal for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services" as shown in Exhibit A. Additional labor/material rates may be provided in addition to Exhibit A. All rates shall remain for the term of the contract as permitted by law, unless specifically detailed as a supplement to Exhibit A. The Method of Payment of the Contract will be Time and Material. Exceptions: The Contractor shall review this RFP and attached sample contract. Exceptions to any portion of the RFP and/or City's standard agreement will need to be clearly identified. Identification of exceptions does not constitute City concurrence and acceptance. Exceptions may be negotiated with the top-ranked firm. Business Entity: Clearly indicate the firm's business entity type (i.e., a California corporation). DIR Registration/Contractor's License: Clearly indicate the Contractor's Department of Industrial Relations registration number for the prime/sub-Contractor, and provide the Contractor and sub -Contractor's license information. Contract Signatories: Provide the two binding signatories for the firm, pursuant to California Corporation Code Section 313. 1y/ 1 4 V_1►11Zd9%'I Mill In preparing the fee and cost proposal for this project, the Contractor shall take into consideration the following: 1. Compensation for services, and any optional tasks, provided will be on a time -and -materials. 2. Fee proposal and billing rates shall remain effective for the term of the Agreement. Any anticipated billing/rate adjustments shall be clearly identified in the Proposal and shall not be made more than once each calendar year. 3. The Contractor's standard, overtime, and double-timing, billing rates for all classifications of staff likely to be involved shall be included with the fee proposal along with the mark-up rate for any expenses and sub - Contractors. Any anticipated fee adjustments shall be clearly noted. 4. The City will negotiate the final fee with the top-ranked Contractor, if necessary. 14 Pdbllo works VIII. INTERVIEW Top ranked Contractor team(s) may be interviewed by the selection committee. Proposed key personnel from the Contractor's team may be requested to present the teams' and their qualifications at an interview. IX. SELECTION PROCESS Proposals will be evaluated on the basis of the response to all provisions of this RFP. Since this solicitation is an RFP as opposed to a Bid, pricing alone will not constitute the entire selection criteria. The City may use some or all of the following criterion in its evaluation and comparison of proposals submitted. The criteria listed are not necessarily an all-inclusive list. The order in which they appear is not intended to indicate their relative importance. The City reserves the right to modify the evaluation criterion and percentage of score as deemed appropriate prior to the commencement of evaluation. The City reserves the right to determine whether or not a proposal meets the specifications and requirements of this RFP and reject any proposal that, in the City's sole opinion, fails to meet the detail or intent of the requirements. The City reserves the right to reject any and all proposals. POTENTIAL EVALUATION CRITERIA 1. Completeness of Response (Pass/Fail) Responses to this RFP must be complete. Responses that do not include the proposal content requirements identified within this RFP and subsequent addenda and do not address each of the requested items will be considered incomplete, may be rated a Fail in the Evaluation Criteria, and may receive no further consideration. 2. Qualifications & Experience (35 points) a. Local Presence - A statement addressing firm's ability to respond in emergencies and effectively conduct the Work for the City based on the Firm's location. b. Relevant experience, specific qualifications, and technical expertise of the Contractor and sub -Contractors to perform the work. c. Experience working in a coastal community and urban environment. d. Contractor's experience working in the public sector and knowledge of public sector procurement processes, in particular City of Seal Beach standards, processes, and policies. e. Quality of references from at least five (5) agencies the Contractor currently or have previously consulted for in the past five (5) years. 3. Organization & Approach (35 points) a. Contractor's understanding of range of possible emergency and unexpected Work. b. Contractor's ability to deploy the appropriate resources to promptly meet requested emergency and/or non -emergency Work. c. Contractor's availability to complete both small and large scale projects without the compromise of quality, cost, and/or time. d. Contractor's ability to self -perform the requested Work, or forma quality sub -contracting 15 _11&4 4+ p tale works team. e. Contractor's understanding of the nature of public sector work and its decision-making process. 4. Fee (30 points) a. Cost proposal b. Quality of sample letter proposal The City reserves the right to determine whether or not a proposal meets the specifications and requirements of this RFP and reject any proposal that, in the City's sole opinion, fails to meet the detail or intent of the requirements. The City reserves the right to reject any and all proposals. The City reserves the right to put non -emergency and pre -planned projects out for formal bidding. All proposals received as specified will be evaluated by City staff in accordance with the abovementioned. During the evaluation period, the City may do any or all of the following: generate a "short list" and conduct interviews with the top candidates; conduct on-site visits and/or tours of the candidates' places of business. Contractors should be aware that award may be made without Contractor visits, interviews, or further discussion or negotiations. X. SPECIAL PROVISIONS a. Normal working hours will generally be between the hours of 7:30 AM and 5:30 PM, Monday through Friday. During emergencies, work may be required at other than normal hours. The Contractor must receive the approval of the City prior to commencing Work during hours outside those stated above. b. Contractor shall maintain an adequate crew of at least two experienced employees to perform the services required. c. Contractor will be required to supply a list of equipment owned and available for Work. d. Contractor will be required to supply a list of references for similar work performed. e. Contractor will be required to supply a list of sub -contractors, if applicable. f. Contractor will be required to supply additional experience references, if requested. g. Contractor shall provide City with required proof of liability insurance, workman's compensation insurance, vehicle insurance, and City business license as noted in the contract. h. Contractor shall be responsible for Contractor's compliance in all respects with the prevailing wage rates to all the laborers involved, and with California Labor Code Section 1770 et seq., including the keeping of all records required by the provisions of Labor Code Section 1776 and the implementing administrative regulations. The City shall be a third party beneficiary of the forgoing covenant with rights to enforce the same as against the Contractor. 16 �sf4c f� 4 4+ p tale works i. Hourly rates and unit prices quoted shall include all safety equipment required. Traffic control may be required on some sites, and shall be included in quoted prices. j. Hourly rates for emergency work shall be for actual time spent on the job site. No travel time will be paid. k. At any time prior to proposal due date, Contractor may inspect City property for further information, if desired. City representatives will be available if desired to answer questions. I. Contractor shall protect any and all public and private property adjacent to work areas. Any damage resulting directly or indirectly from Contractor's actions shall be the responsibility of the Contractor. m. Contactor shall adhere to all Cal -OSHA rules and regulations for any and all Work performed under this Contract. n. Contractor must be able to provide a list of employee's names, dates worked and hours worked on each date if requested by the City. PFP.qCINNFI The Contractor shall use and furnish all labor necessary for the satisfactory performance for the Work set forth in this Agreement. a. Contractor's Laborers The Contractor shall require each of his/her employees to adhere to basic standards of working attire. These are to include uniforms with the Contractor's company name or insignia clearly visible, proper shoes and other gear required by State Safety Regulations, and proper wearing of clothing, which includes that shirts shall be worn at all times. b. Typical Tasks Contractor shall supply laborers with the necessary skills to perform duties in connection with pavement marking maintenance. c. Licenses Contractor shall possess a valid Contractor's "A" License issued by the Department of Consumer Affairs — Contractors State License Board by the time of proposal submittal and shall remain valid for the term of the Agreement. Contractor shall have a valid City of Seal Beach business license for the term of the Agreement, if selected. Laborers will be required to possess a valid and current California Driver License, including all insurances as required by the City. d. Knowledge and Abilities The Contractor's representative shall have a general knowledge of the asphalt pavement industry, including suitable experience in the field to perform the required work in a safe and thoughtful manner 17 �sf4c f� 4 4+ p tale works EQUIPMENT The contractor shall use and furnish all equipment necessary for the satisfactory performance of the Work set forth in this Agreement. a. Vehicles Contractor shall display the name of their firm on any/all vehicles used or otherwise by the Contractor's employees. b. Maintenance All equipment used by the Contractor shall be maintained in a good operable mechanical condition. All equipment shall be properly adjusted, from an operational safety standpoint. c. Storage of Equipment The Contractor is required to supply storage for equipment that is used in the City. Equipment shall not be stored in the public right-of-way or on any City property without written authorization from the City. SUPERVISION The Contractor shall provide such adequate supervision as to furnish ongoing supervision of workmanship and adherence to schedules by the laborers performing the Work. The foreman, or contractor representative, shall check with the City weekly as to (1) schedule of Work; (2) complaints; and (3) adequacy of performance. The Contractor shall submit such reports as the City may require ensuring compliance with scheduled Work. The foreman shall be onsite while work is in progress. Foremen shall have a minimum of five (5) years of experience in the asphalt pavement field. TELEPHONE, ELECTRONIC MAIL, AND EMERGENCY SERVICE CONTACT INFORMATION The Contractor shall provide the City at all times throughout the duration of this contract emergency telephone numbers of at least two (2) qualified persons who can be called for emergency conditions at any time that Contractor's representatives are not immediately available at the job site. An alternate emergency number shall be provided in case no answer is received at the first number. The emergency number shall be used to contact the Contractor representative who can take the necessary action required to alleviate an emergency condition. In addition, the Contractor shall employ person(s) to answer telephone and e-mail complaints, requests for service, etc. (an answering service will not be considered sufficient for this purpose) during normal City business hours. Normal City business hours are 7:30 A.M. to 5:30 P.M., Monday through Friday. Unless otherwise noted as an emergency, City will coordinate with Contractor to schedule the work with a minimum seven (7) -day prior notification. Contractor is required to provide the City with a 24-hour emergency number for contact outside normal business hours. The response to an emergency call -out by the Contractor 18 Pdbllo works shall not be more than four (4) hours and shall be considered part of the normal contract except when delayed by problems caused by vehicle accidents or Acts of God. XI. GENERAL CONDITIONS A. Signature The Proposal shall be signed by an individual authorized to bind the Contractor. B. Other Considerations: The City shall not be liable for any pre -contractual expenses incurred by any firm considering submitting a proposal in response to this RFP. The City reserves the right to accept or reject any and all proposals, or any part of, or waive any informalities or irregularities. The City reserves the right to withdraw, to cancel this RFP at any time without prior notice and the City makes no representations that any contract will be awarded to any firm responding this RFP. C. Business License Required The Seal Beach Municipal Code requires all businesses operating in the City to obtain a business license and pay a business license tax. For more information, go to www.sealbeachca.gov. D. Prevailing Wage All work performed in connection with execution of this contract work shall be performed in compliance with all applicable laws, ordinances, rules and regulations of federal, state, county or municipal governments or agencies (including, without limitation, all applicable federal and state labor standards, including the prevailing wage provisions of sections 1770 et seq. of the California Labor Code), and (b) all directions, rules and regulations of any fire marshal, health officer, building inspector, or other officer of every governmental agency now having or hereafter acquiring jurisdiction. The Contractor shall indemnify, defend and hold the City harmless from any and all claims, causes of action and liabilities based upon or arising from the failure of any work related to the Agreement to comply with all such applicable legal requirements, including, without limitation, any such claims, causes of action or liabilities that may be asserted against or incurred by City with respect to or in any way arising from the Project's compliance with or failure to comply with applicable laws, including all applicable federal and state labor requirements including, without limitation, the requirements of California Labor Code section 1770 et seq. Contractor agrees that all public work (as defined in California Labor Code section (1720) performed pursuant to this Agreement (the "Public Work"), if any, shall comply with the requirements of California Labor Code sections 1770 et seq. City makes no representation or statement that the project or any portion thereof, is or is not a "public work" as defined in California Labor Code section 1720. In all bid specifications, contracts and subcontracts for any such Public Work, Contractor shall obtain the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work in this locality for each craft, classification or type of worker needed to perform the Public Work, and shall include such rates in the bid specifications, contract or subcontract. Such bid specifications, contract or subcontract must contain the following provision: "It shall be mandatory for the Contractor to pay not less than the said prevailing rate of wages to all workers employed by the contractor in the 19 <,. PArkme works execution of this contract. The Contractor expressly agrees to comply with the penalty provisions of California Labor Code section 1775 and the payroll record keeping requirements of California Labor Code section 1771." E. Registration with the Department of Industrial Relations In accordance with Labor Code Sections 1725.5 and 1771.1, no contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to Section 1725.5 [with limited exceptions for bid purposes only under Labor Code Section 1771.1(a)]. The Department of Industrial Relations Registration Number shall be listed for the Contractor and each subcontractor, if any, in the bid proposal. 20 EXHIBIT B Contractor's Proposal Cly o� �jEai3 �� Department of Public Works February 8, 2021 Addendum No. 1 On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services Attention all Interested Parties: As the City of Seal Beach will be closed on February 15, 2021 in observance of Presidents' Day, proposals in response to the On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services Request for Proposals shall be received by 2:00 p.m. on Tuesday, February 16, 2021. END OF ADDENDUM By order of the City of Seal Beach, Engineering Division Date Attachments None 2/16/2021 PlanetBids Vendor Portal Addenda Feb 08, 2021 1 Addendum No. 1 Proposals shall be received by 2:OOpm on Tuesday, February 16, 2021 due to City of Seal Beach being closed on Monday, February 15, 2021 in observance of Presidents' Day On -Call Asphalt Addendum No 1 (2-8-21).pdf Feb 11, 2021 1.5 Addendum No. 1.5 Changed Bid Due date on Bid page to match Addendum No.1 Email History None https:lipbsystem.planetbids.com/porta II39491/botbo-detai1179618#bidAddendaAndEmails 1I1 City of Seal Beach Request for Proposals for On -Call Emergency and Unexpected Task Asphalt Maintenance and Repair Services �I 0� SEA L E'�� S 1k%ftkft -4L% �OFRM" RFP responses to be received until 2:00 P.M., February 15, 2421 in the Public Works Department ATTN: Iris Lee, Deputy Director of Public Works/City Engineer Approved for Advertising: Iris Lee City Engineer Date Issued: January 19, 2021 ardy & Harper, Inc. �A4W�v W"suw� 32 RANCHO CIRCLE LAKE FOREST, CA 92630 (714)444,18S] FAX (714) 444.2801 STATE LIC. NO. 215952 OIR NO. 1000000076 COVER LETTER SUMMARY OF PROPOSAL: • Hardy & Harper's RFP is intended to provide solutions by an on needed basis per cities request. • Hardy & Harper commits to completing proposed work in a timely manner. • Hardy & Harper intends upon award to partner with the City of Seal Beach to help and strategically identify areas of concern and create plans of action. AUTHORIZED REPRESENTITIVES: Dan T. Maas — President, Chief Financial Officer Michael Murray —Vice President Tanner Hambright — Vice President Kristen S. Paulino — Corporate Secretary Christiana Cook -- Estimator Tina Pham — Project Manager Victor Correa — Superintendent Page 1 ardy & Harper, Inc. A" aw&"rm 32 RANCHO CIRCLE LAKE FOREST, CA 92630 (714)4"-1851 FAX f714)W-2001 STATE LIC, N0.215952 DIR NO, 1000000076 COMPANY QUALIFICATIONS Hardy & Harper, Inc., an engineering and paving contractor is proud to acknowledge that 2021 is our 75th year of service to counties, municipalities, school districts and other public institutions in the greater Southern California area. The firm maintains a contractor's license in classes A, C-8 and C-12. Our Contractor's License number is 215952. The company was originally located at 1312 E. Warner Ave. Santa Ana, California 92705. This site is located in central Orange County. It is located within easy access to four major freeways that traverse Santa Ana, California. The Santa Ana (1-5) Freeway runs northwest to southwest through the northern portion of the city; the Costa Mesa (55) Freeway runs north to southwest along the city's eastern border; the Garden Grove (22) Freeway runs east to west along the city's northern border; the San Diego (1-405), runs east to west approximately on mile south of our location. See Area Description attached. Our specific business location consists of 3.7 acres. There are 3,862 square feet of office space for administration and 11,072 square feet of warehouse space devoted to fleet maintenance. The remainder of the site is utilized for vehicle and equipment storage as well as material inventory. Hardy & Harper, Inc. has now found its new home at 32 Rancho Circle. Lake Forest, California 92630, For 75 years Hardy & Harper Inc. has been providing service to municipalities, school districts, homeowner's associations and private builders. Our expertise and services include: asphalt paving, asphalt overlay, pothole patching, grading, slurry and striping, hauling, demolition, concrete, concrete grinding, trip hazard repair, sidewalk grinding, emergency cleanup, and emergency repairs. Through a bargaining agreement with the AGC of Southern California we have signed Master Labor Agreements with the Construction Laborers, Operating Engineers, and Cement Masons. There are currently seventy (90) full time union employees with our firm in communication with our dispatcher through our cell phone network. We employ two mechanics and one senior mechanic to maintain our fleet of vehicles and heavy machinery. We have a salary staff of approximately 20 people that include, superintendents, project managers, and office administrators, clerical and accounting personnel. Ourfirm uses a state-of-the-art accounting system called Master Builder to accumulate costs by job and client. The system is also utilized for payroll and certified payroll reporting, METHODOLOGY AND SCOPE OF WORK A significant segment of our business is devoted to city, and county asphalt & concrete maintenance. We have had the County of Orange asphalt maintenance contract for the past 15 years. We have held the City of Mission Viejo asphalt maintenance contract for 15 years, and we have held the City of Palos Verdes asphalt & concrete contract for the ardy & Harper, Inc. A" e"&4aft 32 RANCHO CIRCLE LAKE FOREST, CA 92630 (714)144-1851 FAX (714) 441-2801 STATE LIC. NO. 215952 DIR NO. 1000000076 past 20 years. With two (2) men maintenance crew to daily perform all right of way work required. We have three grinding crews, three concrete crews, and five asphalt patch crews currently available serving our existing city and county maintenance clients. These crews were developed to act as "total quality quick response units" These crews have been developed and implemented as a tool to enhance performance, production, and quality in the field under the supervision of Mike Morgan, our Superintendent of City Maintenance. Having crews in these specialties devoted to city maintenance working together with standardized procedures and ar integrated team approach promotes a high degree of professionalism, efficiency, and quality. The expertise and experience these crews gain from working on the jobsites at one city is transferred to jobsites at other cities ail over Southern California. These crews excel at city maintenance because city maintenance is all that they do. ORGANIZATION AND PROJECT TEAM The following is a brief description of our key personnel. Dan T. Maas is our President and Chief Financial Officer. He has 20 years of experience in the industry and he is currently a member of the AGC Orange County Chapter board. Michael Murray is our Vice President and has 3 years with the firm as a Senior Officer, Chief Estimator and Coordinator. Kristen Paulino'is the Director of Accounting and Secretary of the firm. She has been with the firm for 25 years and overseas accounting and administration. Christiana Cook is an Estimator with over 10 years of experience in the industry and is currently bidding all maintenance work. Tina Pham is a Project Manager with over nine years of experience in the industry. She has been with Hardy & Harper Inc., for nine years and currently manages the public works projects for the firm. Victor Correa, City Maintenance Superintendent, has 20 years of industry experience and oversees all maintenance contract service. Tina Pham wilf be your Project Manager. She will direct Victor Correa and the foremen and leadmen that supervise the crews assigned to city maintenance. The number of crews available at any time fluctuates depending on demand but currently we have three grinding crews, three concrete crews, and five asphalt patch crews allocated to city maintenance. Hardy & Harper 32 Rancho Circle Lake Forest, Ca. 92630 714 444-1851 Employee# 100050 to 900901, Status 1 to 1 Emp# Name 100450 TANNER M HAMBRIGHT 100530 GARETT A KING 100550 Steven M Kirschner 100560 MICHAEL L LEWIS 100628 Dan T Maas 100700 JOHN R MAC FARLANE 100702 MEGAN E MANLOVE 100750 MICHAEL J MURRAY 100845 TINA PHAM 200126 ASHLIE E BLANCHARD 200150 JULIANA L COX 200195 CARLOS F ESTRADA LIZARDO 200254 VANESSA GARCIA 200275 KIM K GONTHIER 200380 CHRISTOPHER S ICAMEN 200625 JO -ANN LYONS 200626 CAROLEE MAAS 200701 TESSA MAAS 200705 DAVID A MCCORMICK 200735 ALEX MURO 200800 Kristen S Paulino 200854 HENNESEY ROJAS 200856 MARIA G ROCHA MAGANA 200877 BERNADETTE M VARGAS 300630 FRED T MAAS, JR. 400100 MARK 5 ALLEN 400300 JESUS J DE LA ROSA SORIA 400317 MICHAEL GARCIA 400319 DYLAN A LANDERO 400320 ROMAN D LANDERO 400498 JULIEN D MAZZONE 500077 JUAN D ALVARADO 500098 JESUS 0 CERDA ARIAS 500104 BLAS OROZCO AYALA 500105 CLEMENTE AZPEITIA 500117 RIGOBERTO BOLANOS 500143 DEREK J BURTON 500145 JORGE A CAMBEROS 500167 BAUDELIO C COLON 500168 FRANK CHAVEZ Status Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current Current 07/23/19 500185 Roberto R Cortes Current 500190 GERARDO J CRESPO Current 500220 OSWALDO DEL RIO MEZA Current 500227 FRANCISCO J DIAZ Current 500230 BOBBY A DOMINGUEZ Current 500254 EVERARDO B CHAVEZ Current 500264 MARIO R ESTRADA Current 500275 HERIBERTO FERNANDEZ Current 500320 KEITH E FORDHAM Current 500337 TIMOSTHY S GADDIS Current 500338 RICARDO WARES GALENO Current 500341 DANIEL D GAMBOA Current 500345 ALEJANDRO F GARCIA Current 500355 JOHN F GARCIA Current 500357 NESTOR A GARCIA Current 500373 JORGE L GONZALEZ Current 500386 FRANCISCO GUILLEN Current 500402 FRANCISCO HAROS Current 500417 Daniel Herrera Current 500485 FABIAN D JUAREZ Current 500579 ROBERTO F LOPEZ Current 500580 Angel V Lopez Current 500582 Antonio Lopez Current 500590 Jorge A Lopez Current 500592 JORGE L LOPEZ Current 500593 NIBARDO LOPEZ GUILLEN Current 500595 Jose Antonio Lopez Current 500598 JOSE G LOPEZ Current 500605 LUIS BEDOY MAGANA Current 500607 EDGAR MARTINEZ Current 500614 SIGFREDO G LOPEZ Current 500624 HUMBERTO MESTAS Current 500671 LUI5 A MONTESINOS Current 500673 Jose L Mora Current 500680 SALVADOR L MONTOYA-LEON Current 500715 ARTURO NAVA Current 500748 OMAR ALBA ORTIZ Current 500751 LUIS A OLMOS Current 500756 WILLIAM ORTIZ Current 500761 Frank Perez Current 500763 RAMON PEREDO Current 500764 RUBEN A PEDROZA JR. Current 500774 FRANCISCO PICAZO Current 500776 DILAN J PLASCH Current 500777 URBANO M PRECIADO ALBARRAN Current 500778 RODOLFO PINEDA Current 500850 RICKY J POHL Current 500890 CRISTOBAL TORRES RAMIREZ Current 500891 JOSE R REY£S Current 500897 IRVING A REYES Current 500909 VICTOR A RIVERA Current 500910 Jose E Rivas Current 500911 JOSE E RIVAS Current 500913 VICTOR M RIVAS JR. Current 500914 Sebastian Rivas Current 500918 ALFONSO RIVERA Current 500923 MARIO SANDOVAL, JR. Current 500925 Juan C Santillano Current 500936 ELIAS S SANCHEZ Current 500937 RYAN A SCHAEFER Current 500938 JAMES L SLATER III Current 500939 BENNY SALDIVAR JR Current 500940 LUIS M VILLA SOSA Current 500941 JONATHON SEDENO Current 500942 MICHAEL O SANCHEZ Current 500943 NATHAN R SPARTAGE Current 500944 GUSTAVO SAUCEDO Current 500948 MATTHEW S TAIAN Current 500952 JORGE A TENORIO Current 501120 ALFREDO UGARTE JR Current 501148 BRIAN B VARGAS Current 501149 BACILIO R VASQUEZ Current 501160 JOSE L VAZQUEZ GLORIA Current 501162 Michael J Vasquez Current 501170 LUIS M VILLA Current 501.180 LALO VIRAMONTES Current 501184 MATTHEW A WEBSTER Current 501199 JOSE L ZAVALA Current 530425 BENITO HERNANDEZ Current 600003 THEODORE J ADAMS Current 600025 FERNANDO APODACA Current 600027 SANTIAGO G AVILES Current 600036 LUCIO F BARRIOS Current 600044 MANUEL BELTRAN Current 600046 ALBERTO BLANCAS Current 600087 JOE D CASTELLANO Current 600096 NOE J CHAVEZ Current 600188 ROBERT L DAWSON Current 600215 DO NOT USE DO NOT USE Current 600290 JESSE FELIX Current 600330 Matthew A Flores Current 600358 JESUS A GARCIA Current 600360 Salvador B Garcia Current 600364 JOHN D GODINHO Current 600375 ANDREW V GUTIERREZ Current 600407 HENRY L HERNANDEZ Current 600409 LOUIE J HERNANDEZ Current 600413 DAVID C HUITRON Current 600416 DONNY L HIBBITTS Current 600449 JUSTIN W KINZLE Current 600500 RONALD W LONGTINE Current 600570 BRIAN P LEGRAND Current 600574 ANTONIO G LEMUSJR. Current 600575 Edward Lemus Current 600582 BRANDON M LOCKE Current 600592 SEAN M MERRICK Current 600593 ANTONIO MANCILLAS Current 600594 JORDAN MARTIN Current 600667 JACK W MORGAN Current 600670 LANCE MONTGOMERY Current 600760 Juan R Olmos Current 600762 ROMAN 0 ORTIZ Current 600764 BELIZARIO ORTEGA Current 600779 JASON J PLASCH Current 600803 EDWARD RAMIREZ Current 600815 FELIPE REYES Current 600955 JESUS A SALDANA Current 600957 EFRAIN SALINAS Current 600960 BRIAN R SAMPSON Current 600970 HECTOR SANCHEZ Current 600982 WAYNE T STONE Current 601146 LAWRENCE P VALDEZ Current 601155 JOSE G VARGAS Current 601185 BRANDON WATSON Current 601187 CALVIN D WILSON Current 601189 BLAKE T WOOD Current 601190 GERALDO A ZAMORA Current 601195 YSIDRO C ZAVALA Current 700045 HUGO AGUILAR Current 700090 GABINO MACIAS ANDRADE Current 700098 ARISTED JAIME MARTINEZ Current 700185 RUBEN M CALDERA Current 700200 ALBERT R CANTU Current 700209 ARTURO J CARDENAS Current 700213 JOSE L CELIS Current 700305 CARLOS FIGUEROA Current 700350 JOSE A LOPEZ GARCIA Current 700360 ROGELIO GIL RAMIREZ Current 700363 ROY GOMEZJR. Current 700369 JAVIER GONZALES HERNANDEZ Current 700372 J JESUS CORONA GONZALEZ Current 700376 JOSE J GONZALEZ-HERNANDEZ Current 700378 LUIS M GONZALES Current 700380 MARTIN G GONZALEZ Current 700382 ALEJANDRO CASTRO HERNANDEZ Current 700387 JOSE A HERNANDEZ Current 700393 CESAR LOPEZ GUILLEN Current 700394 RAUL OROZCOIBARRA Current 700396 CESAR V LOPEZ Current 700397 FRANCISCO A LOPEZ Current 700445 JESUS LOPEZ VALENCIA Current 700450 Jorge Z Lopez Current 700499 JOSE M LOPEZ Current 700512 JUAN C LOPEZ Current 700596 SALVADOR G LOPEZ Current 700600 RAFAEL LOPEZ Current 700605 SIMON LOPEZ Current 700636 CARLOS P MARTINEZ Current 700639 JUAN J MARTINEZ Current 700641 SALVADOR D MARTINEZ Current 700650 CARLOS MONTOYA Current 700662 MARCO A MORALES Current 700665 Marcelino Morales Current 700670 JOSE R NAVARRO Current 700744 RUBEN H PEDROZA SR. Current 700746 RUBEN A PEDROZA JR. Current 700754 EDUARDO RAYMUN00-MORALES Current 700755 ALFONZO QUIROZ Current 700769 GARY SAVALA Current 700770 Miguel Serrato-Sanchez Current 700771 ISMAEL RIVAS Current 700785 Filemon Tinajero Current 700841 DIEGO VALENCIA Current 700848 JOSE G LOPEZ-VELAZQUEZ Current 700850 GILBERTO VILCHiS Current 700853 MANUEL R VILLA Current 700855 ROBERT R VILLA Current 700950 Daniel J Zuniga Current 900120 Dennis E Beyle Current 900236 JUSTIN L DOOLEY Current 900599 MICHAEL A AMUNDSON Current Report 5-1-1-21 Employee List -Hire Date Term Date Race Gender Zip Code �',� 12/19/16 HARDY & HARPER, INC. Employee List -Hire Date Term Date Race Gender Zip Cade Employee# 500098 to 700900, Status f to 1 Emp# Name Zip Code Position Status Hire Date Termination Date Gender Ra 500098 JESUS O ARIAS 92704 3100 CL -JM Group I Current 06!0312013 1 500117 RIGOBERTO BOLANOS 90806 3100 CL -JM Group I Current 09/27/2012 1 500125 LUCIO F BARRIOS 90680 3100 CL -JM Group I Current 06/18/2012 1 500129 ALBERTO BLANCAS 90621 3400 CL -JM Group IV Current 0921/2015 1 500145 JORGE A CAMBEROS 92627 3960 CL -Apprentice 6th Current 12/22/2014 1 500150 TYLER D CAMPBELL 92648 3200 CL -JM Group It Current 08r2mWe 1 500162 ISRAEL M CHAGOLLA 92404 3940 CL -Apprentice 4th Current 10/052016 1 500168 FRANK CHAVEZ 92337 3100 CL -JM Group I Current 01/282013 1 500169 JAVIER CHAVEZ 92833 3100 CL -JM Group I Current 081152016 1 500170 ENRIQUE F CONTRERAS 92411 3400 CL -JM Group IV Current 08/172016 1 500185 Roberto R Cortez 92805 3100 CL -JM Group I Current 08/24/2001 1 500227 FRANCISCO J DIAZ 91752 3100 CL -JM Group I Current 07!182016 1 500235 JONATHAN A DOOLEY 92407 3000 CL -Foreman Current 06/03/2016 1 500236 JUSTIN L DOOLEY 92407 24000 Superintendent Current 11/032011 1 500255 NOE J CHAVEZ 92530 3400 CL -JM Group IV Current 071052005 1 500320 KEITH E FORDHAM 92688 3100 CL -JM Group I Current 041082013 1 500344 ALFREDO S GARCIA 92345 3400 CL -JM Group IV Current 091022016 1 500345 ALEJANDRO F GARCIA 92555 3400 CL -JM Group IV Current 09/182009 1 500351 JESUS A GARCIA 92703 3100 CL•JM Group I Current 01/172005 1 500354 JOSE L GARCIA OROPEZA 92707 3910 CL -Apprentice 1st Current 08/2212016 1 500360 CORY M DEHOOG 92223 3100 CLJM Group I Current 05212010 1 500386 FRANCISCO GUILLEN 92866 3960 CL -Apprentice 6th Current 06/02/2016 1 500485 FABIAN D JUAREZ 92337 3200 CL -JM Group li Current 07/07/1008 1 500575 ANTONIO G LEMUS JR. 92530 3100 CL -JM Group I Current 02/012013 1 Report 5-1-1-19 12/182016 JO -ANN Page 1 01:38 PM m c w Q -; to cfl co co co co Q fD (n M W QQ A N� O(D o' Q v4 QVD v d Ch C] CD O (D y O 01 Q p Cly Q O Do c a — 1 — — — 1 .-+ � J s — — — — Q V A p, : Z cn [n u, an am o o o o (A cn o 0 cn o m cn O a a o a Doo o Q {" �' - C,cn u, a© a O s O Q N N O Ch p a f0 co 03 (jDw QV7 -4 O -4 V -j 0 �� a O a q ` o .p W V tJt O A V m cn OD] Cf! V O 07 Ga _� -+ -+ [�D CSO A N [h a a a O m 6-© rm- m D m O o O0 r r n n n n n n n n ('j o a' u, o m m m Cu D = x w cn (C14) (/) C r- C �, p o. o (n m 0 C- 0 n n O ,� cnn m mz ��n�z�� � n@ z w — 3 oN n n n ttvv C .� 1 co w m _ o G? m z D z D a D D r o m n Cl) m C D C C D D ro M D M D n� O X 0 � m o = D �a 'D X D r" m z n= Z� C v 171 x m r -U m 0 �` 0 (n r r Co y D z D E m 0 w ai rn mt m i a N w w v w o m Z -I Z CD i - m N O C w Cn m cn 0 -E x1 Q 47 -+ 3 m - N m m A �a C _O N c� c0 r n n n n Ci C7 m Cn O N G7 0 N m n L z Z o nr A Co 8 A CDCY1 N m (i m c w Q -; to cfl co co co co Q fD (n M W QQ A N� o' Q v4 QVD v d Ch C] CD O (D y O 01 Q p Cly Q O c a — 1 — — — 1 .-+ � J s — — — — Q V A p, : D o m cn O c�Nn cDn a© a O a a s o A W (`' a a N a b d QO O Q q o W W W W (DD C) n� CD CDQ o Q a a a a a a o a a a i8�a r r n n n n n n n n ('j 0 0 O O ria c b L rn r r" �CD n n a o b L cr rte- rn- � n n n L7 G7 G1 m o 'S Co W 3 CD ID m G) CO G3S O o. 6] �a 'D w O ac° O m o o= o o a 4 G-) m C)G)G7G)G)G)C 23 Q O — Co O z .c .0 c O C C Ci C @ "=i3 U _ C -moo V 4� Q mto Cn m A A �a C _O c� c0 c c n n n n n Ci C7 n N Q A Co 8 A CDCY1 ip m (i m e 5 ID m c w Q -; D o Q fD rr o' v d m c a — 1 — — — 1 .-+ � J s — — — — w o' : D o m Q O c�Nn cDn v8 a N O W NJ (A w n� D Pi i8�a ria �CD i co CD C)_ 0 W NCO D (D CO G3S O GS 6] Q D p (QD 0 4 Q D Q O Q Co O O N N N Ci A C.f7 Ur V 4� Q mto Cn m A A N _O C) N Q A Co 8 A CDCY1 ip m a z m CD rn o 3 N O 4 (D(D (D 2 (D (D Q su X D? n CD G) (D CL N n A Q CD fD rr o' v d m a — 1 — — — 1 .-+ � J s — — — — m a z m CD rn o 3 N O 4 (D(D (D 2 (D (D Q su X D? n CD G) (D CL N n A Q CD Employee List -Hire Date Term Date Race Gender Zip Code Continued... Emp# Name 12/19/16 Zip Code Position Status Hire Date Termination Date Gender Ra 600037 AODAE T BARRIS 92374 17910 OE -Apprentice I Current 09/15420 1 6 600045 JAVIER BLANCAS 90621 17400 OE -JM Grp IV Current 08/242012 600075 MATTHEW J CAMPBELL 92586 17930 OE -Apprentice III Current 10/04/2016 600093 ELIZABETH CASTRO 92407 17800 OE -JM Grp Vlll Current 0926/2016 600100 WILLIAM L CLARK 92585 17600 OE -JM Grp VI Current 051182010 600188 ROBERT L DAWSON 91786 17000 OE -Foreman Current 08/17/2013 600195 RAUL DOMINGUEZ 91730 17600 OE -JM Grp VI Current 041252016 600360 Salvador B Garcia 92704 17600 OE -JM Grp VI Current 02/0111994 600364 JOHN D GODINHO 91710 17800 OE -JM Grp Vill Current 04262010 600365 ANTHONY GONZALEZ 90550 17600 OE -JM Grp VI Current 09101/2016 600367 TED D GOODWIN JR. 92307 17000 OE -Foreman Current 07/05/2011 09/04/2015 600372 JOSE L GOINT 90605 17400 OE -JM Grp IV Current 09101 2 0 1 8 600375 ANDREW V GUTIERREZ 92530 17400 OE -JM Grp IV Current 10/2=015 600413 DAVID C HUITRON 90723 17400 OE -JM Grp IV Current 04/092009 600570 BRIAN P LEGRAND 92647 17600 OE -JM Grp VI Current 0410512016 600575 Edward A Lemus 92530 17600 OE -JM Grp Vi Current 0410411995 600576 John T Lacy 92886 17800 OE -JM Grp Vlll Current 11/1312015 600630 WILLLIAM J MOAT 91730 17800 OE -JM Grp VIII Current 1011112016 6DO760 Juan R Olmos 92376 17600 OE -JM Grp VI Current 05/2 112003 600815 FELIPE REYES 92503 17600 OE -JM Grp VI Current 03/1112015 600821 MICHELLE L ROCHA 925003 17600 OE -JM Grp Vl Current 09222016 609940 STEVE D SALAZAR 92359 17400 OE -JM Grp IV Current 05/1712016 600955 JESUS A SALDANA 92407 17400 OE -JM Grp IV Current 09117/2009 600960 BRIAN R SAMPSON 92591 17400 OE -JM Grp IV Current 081132008 600970 HECTOR SANCHEZ 91706 17600 OE -JM Grp Vi Current 07202006 601155 JOSE G VARGAS 92705 17400 OE -JM Grp IV Current 09/302004 601185 BRANDON WATSON 92307 17600 OE -JM Grp VI Current 0825/2014 601187 CALVIN D WILSON 92335 17000 OE -Foreman Current 10!1012016 601190 GERALDO A ZAMORA 92509 17800 OE -JM Grp VIII Current 02/01/2011 700055 JOSE L SALTO 92509 9100 CM -Journeyman Current 08/182016 Report 5-1.1-19 12/192018 JO -ANN Page 3 01:38 PM Employee List -Hire Date Term Rate Race Gender Zip Code Continued... Emp# Narne Zip Code Position 12119/16 Status Hire Data Termination Date Gender Ra 700130 FRANCISCO J BARBA 92780 9100 CM -Journeyman Current 700200 ALBERT R CANTU 92703 10/17/2016 700275 VINCENT C ESCOBEDO 9100 CM -Journeyman Current 02108!2010 700369 JAVIER GONZALES 92704 9100 CMJoumeyman Current 09!138012 700372 J JESUS CORONA GONZALEZ 92583 9100 CM-Joumeyman Current 08109!2016 700376 JOSE J GONZALEZ-HERNANDEZ 92555 9100 CM -Journeyman Current 05012015 700380 MARTIN G GONZALFZ 92583 9100 CM-Joumeyman Current 08/09f2016 700450 Jorge Z Lopez 91761 9100 CM-Joumeyman Current 02/24/2010 700499 JOSE M LOPEZ 92551 9100 CM -Journeyman Current 07828014 700512 JUAN C LOPEZ 92703 9100 CM-Joumeyman Current 02/058007 700535 MANUEL L LOPEZ 92701 9100 CM-Joumeyman Current 07118/2017 700596 SALVADOR G LOPEZ 91752 9100 CM -Journeyman Current 1 011 712 0 1 6 700800 RAFAEL LOPEZ 92705 9100 CM-Joumeyman Current 04/19/2005 700637 ABDON C MARIN 92705 9100 CM-Joumeyman Current 031298018 700641 SALVADOR D MARTINEZ 92543 9100 CM-Joumeyman Current 08/018016 700861 .JESUS R MURATALLA 92683 9100 CM-Joumeyman Current 0510512015 700662 MARCO A MORALES 92551 9100 CM-Joumeyman Current 6 700665 Marcelino Morales 92404CM-Journeyman08!03!2016 9101) CM -Journeyman Current 0810112016 700670 JOSE R NAVARRO 92585 9100 CM-Joume yman Current 0 512 11/2 0 03 700748 JERARDO PALAFOX-CORONA 92553 9100 CM-Joumeyman Current 0 610 58 01 2 700770 Miguel Serralo-Sanchez 92543 9100 CM -Journeyman Current 08/168018 700785 Filemon Tinajero 92702 9100 GM -Journeyman Currant 07116/2014 700848 JOSE G LOPEZ-VELAZQUEZ 91744 9100 CM -Journeyman Curren) 10!308913 92704 9100 CM -Journeyman Current 07888016 11/158016 Report 5_1-1.19 JO -ANN Page 4 of 4 12/18/2016 01:38 PM ardy & Harper, Inc. A" C49&4dM "RANCHO CIRCLE LAKE FOREST, Q 92650 (714) 444.1851 FAX (714) 444-2801 STATE Ur- NO. 215952 DIR N0. 1000000076 REFERENCES Please see the attached listed of References for Hardy & Harper, Inc. • Public Works References • Large Project References • Maintenance Contract References PUBLIC WORKS REFERENCES Attachment A 2017/2019 Owner/Agency Contact Project (Amount & Completion Date) City of Jurupa Valley 8930 Limonite Ave Juru a Valley, CA 92509 Mike Myers (951) 332-6464 mm ers !uru avalie .or T.R.I.P Pavement Rehab. Phase I $1,254,012.21 03117 City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Frank Tran (949) 644-3340 ftran new ortbeachca. ov MacArthur Blvd Pavement Rehabilitation $2,142,045.66 3117 City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Romeo M. David (909) 477-2740 Romeo. David cit ofrc.us Red Hill Park Pedestrian Trail Renovation Project $171,888.70 3117 City of Signal Hill 2175 Cherry Ave Signal Hill, CA 90755 Anthony Caraveo (562) 989-7352 acaravegacityofsicnalhill.orA Willow Street Improvement Project $922,100.43 6117 City of Laguna Hills 24035 EI Toro Rd Laguna Hills Frank Tran (949) 644-3340 ftran new ortbeachca. ov Arterial Pavement Mngmt. Project Street Rehabilitation $1,375,406.90 6117 City of Highland 27215 Base Line Highland, CA 92346 John Egan (909) 890-1255 ie an erscinc.com West Highland Bikeways Infrastructure & Pavement Imprv. $2,678,788.77 7117 City of Irvine One Civic Center Plaza Irvine, CA 92623 Briars Brown (949) 724-6000 bbrown cit ofirvine.or Yale Ave Rehabilitation Irvine Center Drive Bid No. 17-1160 $2,453,343.83 7117 City of Pasadena 100 N. Garfield Ave Pasadena, CA 91109 Tony An (626) 744-7403 tan@citvofPasadena.net Preventative Maintenance of Street 2016 $945,932.59 8117 City of Ontario 303 East B Street Ontario, CA 91764 Miguel Sotomayor (909) 395-2108 msotoma or ontarioca. ov ATP Cycle I Safe Routes to School Sidewalk Imprv. $824,850.88 10117 City of Inglewood One Manchester Blvd Inglewood, CA 90301 Hunter Nguyen (310) 412-5333 hhunter cit ofin lewood.or Streets & Alleys Rehabilitation Project $2,639,330.06 11117 PUBLIC WORKS REFERENCES Attachment 2017/2019 Owner/Agency Contact Project (Amount & Completion Date) City of Covina Chris Marcarello Grand Ave. Street 125 E. College (626) 384-5490 Rehabilitation Fed Project Covina, CA 91723 Aw(alcovinaca.gov NO.:STPL-5118(020) $3,030,000.00 5118 City of Rancho Palos Verdes Ron Dragoo Residential St. Rehab. Project 30940 Hawthorn Blvd. (310)544-5252 Rancho Palos Verdes, CA 90275 gkwolek@lcf.ca.gov $2,227,000.00 5118 City of Downey Edwin. Norris CIP No. 18-02 Residential St. 11111 Brookshire Ave. (562) 904-7110 Pavement Rehab. Project Downey, CA 90241 enorris downs ca.or $1,808,000.00 03119 City of Dana point Matthew Sinacori Arterial Roadway Resurface & 33282 Golden Lantern (949) 248-3500 Pavement Preservation Project Dana Point, Ca 92629 msinacori dans oint.or $3,993,000.00 1118 City of Fountain Valley Fatana Temory Resurface & Rehab. Of Euclid 10200 Slater Ave. (714)593-4433 Street from Slater Ave. to Fountain Valley, CA 92708 fatana.TemoryCcbfountianvalley orci Warner ave. No. TI -271 $1,077,000.00 9118 City of Pomona Public Works Major Street Improvements 505 South Garey Ave. (909)620-2261 Pomona, CA 91766 wen ineerin ci. omona.ca.us $3,839,000.00 8118 City of Lancaster Luis Garibay 2018 Sidewalk, Curb & Gutter 44933 Fern Ave. (661)723-6110 Repairs Lancaster, CA 93534 Lqarbibaakitypflancasterorg $1,976,000.00 12118 City of Tustin Mario Medina FY 2017-18 Roadway Rehab. & 300 Centennial way (949)394-8955 Sidewalk Repair Project Tustin,CA 92780 mmedina tustinca.or $1,575,125.00 10118 City of Vernon Daniel Wall Downey Road Improvements 4305 S. Santa fe Ave. (323) 583-8811 x305 Vernon, CA 90058 PublicWorksBids ci.vernon.ca.us $2,584,000.00 1117 City of Diamond Bar Jason Williams Residential &Collector Road 21810 Copley Drive (909)839-7050 Rehab. Project PUBLIC WORKS REFERENCES Attachment A 2017/2019 Diamond Bar, CA 91765 fJwillamsCd,)diamondbarca.gov 1$1,551,000.00 1211 Owner/Agency Contact Info Project Title, Amount & Completion Date City of Huntington Beach Joseph Fuentes Nichols Lane Rehabilitation 2000 Main Street 714-536-5431 From Slater Ave to Warner Ave Huntington Beach, CA 92648 Lu_e_ntes@surfcity-hb.org $644,000.00 9/2016 City of Cathedral City Bill Simmons Date Palm Dr & Cathedral Canyon 68-700 Avenida Lalo Guerrero 760-770-0340 Pavement Rehabilitation Cathedral City, CA 92234 bsimmons cathedralcity.gov $939,000.00 11/2016 City of Moreno Valley Henry Ngo Edgemont Neighborhood 14177 Federick Street 951-413-3100 Pavement Rehabilitation Moreno Valley, CA 92552 Lenr lnpmoval.org $383,000 12/2016 City of Chino Hills Fe Rama FY 2016-2017 Street Improvement 14000 City Center Drive 909-364-2600 Project Chino Hills, CA 91709 frama@chinohills.org $1,039,000.00 12/2016 County of San Bernardino Melinda Barnes Slover Ave Phase II 825 East 3rd Street 909-387-7920 San Bernardino, CA 92415 mebarnes@dpw.sbcounty.g $2,405,020.32 1/2017 City of Newport Beach Frank Tran MacArthur Blvd Pavement 100 Civic Center Drive 949-644-3340 Rehabilitation Newport Beach, CA 92660 ftran@newportbeachca.gov $2,142,045.66 3/2017 County of Los Angeles Jose Pou 124th Street Et. Al 900 S Fremont Ave 626-458-2191 RDC0013372 Alhambra, CA 91803 ipou�W_ddpw.lacounty.gov $4,304,600.00 12/2014 City of Palos Verdes Estates Jack Rydell FY 14/15 Street Resurfacing 340 Palso Verdes Dr. West 310-378-0383 Project 14-07 Palos Verdes Estates, CA 90274 'ackr dell caa rofessionals.com $1,187,987.00 12/2014 City of Tustin Eddy Jan 2013-14 Roadway Rehabilitation 300 Centennial Way 714-573-3157 & Sidewalk Repair project Tustin, CA 92780 ejan@andpen.com $1,491,543.00 12/2014 City of Pasadena Richard Yee Preventitive Maintenance Street 100 N. Garfield Ave 626-744-4643 Fed ID NO. STPL-5064(081) Pasadena, CA 92570 Richard ee cit of pasadena.net $1,518,231.24 8/2015 City of Cypress Nick Mangkalakiri 2008/09 Overlay Project 5275 Orange Ave 714-229-6729 Cypress, CA 90630 nmankalakiri c ressca.or $1,366,000.00 6/2009 City of Huntington Beach Eric Charlonne Rehabilitation of Center 2000 Main Street 714-536-5430 Magnolia & Springdale Huntington Beach, CA 92648 echarlonne@surfcity-hb.org $2,393,000.00 8/2012 City of Laguna Niguel Frank Borges 10-11 Overlay & sub Drain 27791 La Paz Road 949-362-4325 Improvement Laguna Niguel, CA 92677 fborges ci.laguna-niguel.ca.us $1,573,000.00 4/2011 City of Desert Hot Springs Hal Goldenberg 2012 Street Rehabilitation 65-950 Pierson Blvd 760-329-6411 Program Phase 2 Desert Hot Springs, CA 92240 hgoldenberg@citvofdhs.org $1,212,000.00 11/2012 City of Perris Chris Sunde 2012 Grind & Overlay 101 N "D" Street 951-943-6504 Rehabilitation Perris, CA 92572 Ichrisgtrilakeconsultants.cgm 1$789,000.00 11/2012 City of Pasadena Elvin Jiang 2009 Resurfacing of Streets 100 N. Garfield Ave 626-744-6912 Pasadena, CA 92570 elviniiang@cityofPasadena.net $4,473,000.00 12/2010 City of Laguna Niguel Frank Borges Marina Hills Neighborhood 27791 La Paz Road 949-362-4325 Pavement Rehabilitation Project Laguna Niguel, CA 92677 fbor�es@ci.la�una-niRuel.ca.us $3,738,000.00 5/2018 County of Riverside Trai Nguyen Murrieta Hot Springs Road 3525 14th Street 951-961-5363 Riverside, CA 92501 tnpuyen@dpw.sbcounty.gov $1,305,000.00 4/2014 City of Westminster Tuan Pham Brookhurst Street 8200 Westminster Blvd 714-548-3456 Westminster, CA 92683 tpham a2westminster-ca.goy $1,116,920.00 3/2014 City of Riverside Steve Howard Arterial Street Maintenance 3900 Main Street 951-826-5708 Riverside, CA 92501 showard@riversideca.gov $4,444,000.00 3/2014 City of Jurupa Valley Mike Myers TRIP Pavement Rehabilitation 8939 Limonite Ave 951-332-6464 Phase I Jurupa Valley, CA 92509 mmyers@iurupavalley.org $1,254,012.21 3/2017 City of Laguna Hills Kenneth H. Rosenfield Arterial Pavement Management 24035 El Toro Rd (949) 707-2655 Project Street Rehabilitation Laguna Hills, CA krosenfield@lagunLhiLlIsca.gov $1,275,406.90 5/2017 City of Highland John Egan West Highland Bikeways 27215 Base Line 909-890-1255 Infrastructure & Pavement Improv Highland, CA 92347 iegan@erscinc.com $2,678,788.77 7/2017 City of Irvine Brian Brown Yale Ave Rehabilitation Irvine One Civic Center Plaza 949-724-6000 Center Drive Irvine, CA 92623 bbrown cit ofirvine.or $2,453,343.83 7/2017 City of Riverside Steve Howard Minor Street Maintenance 3900 Main Street 951-826-5708 Riverside, CA 92501 showard@riversideca.Roy $1,543,000.00 4/2014 County of San Bernardino J.D Gayman San Bernardino Ave 825 East 3rd Street 909-387-7924 San Bernardino, CA 92415 idgayman@dpw.sbcounty.gov $1,577,000.00 6/2014 City of Inglewood Hunter Nguyen Street & Alleys Rehabilitation One Manchester Blvd 310-412-5333 Project Inglewood, CA 90301 hhnter cit ofin lewood.or $2,639,330.06 11/2017 City of Laguna Niguel Frank Borges St. Christopher Neighborhoods 30111 Crown Valley Parkway 949-362-4325 & Via Vetti Pavement Rehabilitation Laguna Niguel, CA 92677 fborgesCcDci.laguna-niguel.ca.us $1.226.861.00 9/2015 City of Norco Bill Thomas FY 2015-16 Annual Minor Street 2870 Clark Ave 951-735-3900 Rehabilitation Phase Norco, CA 92860 bthomas ci.norco.ca.us $777,000.00 10/2015 City of Simi Valley Fuad Shamout FY 2015-16 Annual Minor Street 2929 Tapo Canyon Road 805-318-0661 Rehabilitation Simi Valley, CA 93063 fsham_o_ut@simivalley.org $1,213,960.50 11/2015 City of Walnut Natalie Avila Area 1 & 2 Street Resurfacing 21201 La Puente Rd 909-594-9702 project Walnut, CA 91789 1 navila@rkagroup.com $1,076,200.00 11/2015 Annual Maintenance Contracts Hardy & Harper, Inc. Owner/ Agency Contact Project City of Diamond Bar Jorge Garcia Sidewalk, Curb & Gutter 21825 E. Copley Dr j.garcia@diamondbarca.gov $500,000.00 Diamond Bar, CA 97765 (909)983-7046 07113-06118 City of Rancho Palos Ron Dragoo Annual Street Verdes rond@rpv.com Maintenance & Annual 30940 Hawthorne Blvd. (310)544-5252 Slide Repairs Rancho Palos Verdes, $500,000.00 CA 90275 07112-06118 City of Yorba Linda Armondo Jaime Annual On -Call P.O. Box 87014 (714)961-7100 Unit Pricing per Project Yorba Linda, CA 92885 07112-06118 City of Corona Dave Mundt Annual Maintenance 735 Public Safety Way dave.mundt@ci.corona.ca.us $500,000.00 Corona, CA 92880 (951)23-3537 07112-06118 City of Long Beach Rachel Davis Annual Asphalt and Water/Sewer (562)570-2393 Concrete Maintenance Department $2,500,000.00 1800 E. Wardlow Rd. 03114-03116 Long Beach, CA 90807 City of Anaheim Greg Ortega Annual Master Service 200 Anaheim Blvd. (714)765-6935 Agreement Anaheim, CA 92805 Unit Pricing per Project 07110-06115 Reza Jafari Annual On -Cali Asphalt City of Irvine rjafari@ci.irvine.ca.us Maintenance Services One Civic Center Plaza (949)724-7545 $639,141.00 P.O. Box 19575 06112-06115 Irvine, CA 92623 MCE Corporation Karan Healy Annual Asphalt City of Bell khealy@mce-corp.com Maintenance Contract 6515 Trinity Court (925)803-4111 06113-07115 Dublin, CA 94568 City of Bell dresendez@cjtyofbell.com City of Mission Viejo Chris Robinson Asphalt/ Concrete 200 Civic Center (949)795-8483 Repairs Mission Viejo, CA 92691 $598,600.00 City of San Juan Juan Camacho Asphalt/ Crack Seal/ Capistrano (949)493-1171 Seal Coat Maintenance 32400 Paseo Adelanto and Repairs San Juan Capistrano, $1,053,500.00 CA 92675 06/11-06/15 City of Temecula Matt Weichec Paving Maintenance 43200 Business Park matt.weichec@cityoftemecuIa.org Services Drive (951)694-6444 $400,000.00 Temecula, CA 92589 07/12-06/16 City of Torrance Davina Buenavista Citywide Sidewalk 20500 Madrona (310) 618-3057 Ramping & Grinding Torrance, CA 90503 Program $109,940.00 2014-2015 STATE LICE SE BOARD ACTIVE LICENSE 40 L 215952 e- CORP . HARDY & HARPER INC A C-8 C 12 lum �a 12/31/2021 vwvw.cslb.ca.gov 7r2s12ozo Contractor Information https://cadir.secure.force.com/ContractorSearch[PrintRegDetails Legal Entity Name HARDY & HARPER, INC. Legal Entity Type Corporation Status Active Registration Number 1000000076 Registration effective date 7/1/2020 Registration expiration date 6130/2021 Mailing Address 32 Rancho Circle Lake Forest 92630 CA United S... Physical Address 32 Rancho Circle Lake Forest 92630 CA United 5... Email Address Trade Name/DSA License Number(s) CSLB:215952 CSLB:215952 Legal Entity Information Corporation Number: C0443071 Federal Employment Identification Number: President Name: Daniel T Maas Vice President Name: STEVEN M KIRSCHNER Treasurer Name: Secretary Name: KRISTEN S PAULINO CEO Name: DANIEL T MAAS Agent of Service Name: DANIEL T MAAS Agent of Service Mailing Address: 32 Rancho Circle Lake Forest 92630 CA United States of America Workers Compensation Registration History Effective Date Expiration Date 6/15/2018 6/30/2019 5/9/2017 6/30/2018 6/8/2016 6130/2017 6/19/2015 613012016 7/2/2014 6/30/2015 7/1/2019 6/30/2020 7/1/2020 6/30/2021 https:/fcadir.secure.force.com/ContractorSearch/PrintRegDetails 112 7/29/2020 Do you lease employees No through Professional Employer Organization (PEO)?: Please provide your current workers compensation insurance information below: https:/icadir.secure.force.com/ContractorSearch/PrintRegDetails PEO PEO PEO PEO InformationName Phone Email Insured by Carrier Policy Holder Name:HARDY & HARPER, INC.Insurance Carrier: FEDERAL INSURANCE COMPANYPolicy Number:54310019Inception date:913012019 Expiration Date:913012020 https://cadir.secure,force.comlContractorSearch[PrintRegDetails 212 ardy & Harper, Inc,, "*&A" Oga4&M 32 RANCHO CIRCLE LAKE FOREST, CA 92630 (714) 444-1851 fAX (114) 444-2801 STATE LIC. NO. 2159S2 DIR NO.1000000071 Hardy & Harper, Inc. S. Corporation 32 Rancho Circle. Lake Forest, CA 92630 Dan T. Maas — President, Chief Financial Officer Michael Murray—Vice President Tanner Hambright —Vice President Kristen S. Paulino — Corporate Secretary MINUTES OF THE SPECIAL MEETING OF HARDY & HARPER, INC. A special meeting of the directors of HARDY & HARPER, INC. was held at the principal office of the corporation, on January _-c 2020, at 11:00 a.m. pursuant to the call made by the Secretary and written notice waived by the directors by signing these minutes. Pursuant to the provisions and bylaws, DANIEL MAAS as Chief Financial Officer and KRISTEN PAULINO, as Secretary of the Corporation, presided over the meeting. The purpose of the meeting was to nominate and elect two additional Vice -Presidents of the Company. Present at the meeting were all of the Directors of the Corporation: DANIEL MAAS STEVEN M. KIRSCHNER KRISTEN S. PAULNO TESSA MAAS DANIEL MAAS was re-elected President and Chief Executive Officer, KRISTEN PAULINO was re-elected Secretary, STEVE KIRSCHNER was re-elected Vice -President, TANNER HAMBRIGHT was elected Vice -President of Strategic Development, and as Vice - President he is hereby authorized to sign contracts on behalf of the corporation. MICHAEL MURRAY was elected Vice-President/Operations Manager for the corporation with authority to sign contracts on behalf of the corporation and authorized to sign checking and bank accounts on behalf of the corporation where the corporation has established bank and checking accounts. There being no finther business it was moved second and carried that the meeting be adjourned. DATED: January 2020 DAMER. MCAS, Director/President ST&VI9N Ni KIRSCHNER, DirectorNice-President � 'A k �) K�UStEN P�ULINO, Director/Secretary A'A'��M A / ��� QBASA MAAS, Dir ctor Pffbile WW*s EXHIBIT A FEE & COST PROPOSAL 21 FEE & COST PROPOSAL FOR ON-CALL EMERGENCY AND UNEXPECTED TASK ASPHALT MAINTENANCE REPAIR SERVICES (additional labor/equipment/material rates may be added/clarifred with a separate attachment) MOBILIZATION COST $1,500-00 /TASK ORDER M I N I M U M GAL L U U I (in dollars or hours, if applicable) 4 Hour Minimum EQUIPMENT 22 UNIT OF NO. DESCRIPTION MEASURE UNIT PRICE DESCRIPTION E1 Pick -Up Truck HOUR $ 31.25 Bare E2 Crew Truck HOUR $ 37.50 Bare Tack $5.00/Gal E3 Flatbed Truck HOUR $ 37.50 Bare E4 Bed Trailer HOUR $ 130.00 Move -Ins With i steer E5 Bobcat HOUR $ 255.00 + $20.00 for Breaker + $50.00 for Grinder EG Small Excavator HOUR $ 253.00 Bobcat E45 Excavator w/ Hydraulic Thumb Operated E7 Medium Excavator HOUR $270.00 Linkbelt E145 w/ 4' bucket operated E8 Large Excavator HOUR $ 285.00 Linkbelt E245 wl 5' bucket operated 22 E9 Backhoe HOUR $ 275.00 Operated E10 Dump Truck/Super 10 HOUR $ 135.00 Operated Ell Truck and Pup HOUR $ 150.00 Operated E12 Water Truck HOUR $ 230.00 Operated E14 Sweeper HOUR $ 165.00 Operated Els Wheel Loader HOUR $ 210.00 Operated E16 Skip Loader HOUR $ 210.00 Operated E17 Air Compressor w/Jack Hammer HOUR S 25.00 Bare E18 Hydraulic Breaker HOUR $ 100.00 Attachment for equipment E19 Asphalt Paver HOUR $ 195.00 Bare E22 Compaction Wheel HOUR $ 60.00 Attachment for equipment E23 Wacker HOUR $ 35.00 Bare E24 Vibratory Compactor HOUR $ 35.00 Bare E25 Generator HOUR $ 15.00 Bare E26 Sawcutter HOUR $ 135.00 Operated 23 #1 Pexte Works NO. DESCRIPTION STANDARD OVERTIME DOUBLE TIME LI Superintendent $ $ $ Slurry Seat 0.40 /SF 150.00 225.00 300.00 L2 Project Manager $ $ $ 140.00 210.00 280.00 L3 Foreman/Operator $ $ $ 135.00 202.50 270.00 L4 Foreman/Laborer $ $ $ 135.00 202.50 270.00 LS Operator $ $ $ 125.00 187.50 250.00 L6 Laborer $ $ $ 120.00 180.00 240.00 MATERIAL NO. DESCRIPTION UNIT PRICE M1 AC 90.00 /TON M2 AB 25.00 /TON M3 Slurry Seat 0.40 /SF M4 Concrete 200.00 /CY 24 AVxk w ears MARK-UP FOR ITEMS NOT NOTED ABOVE NO. DESCRIPTION PERCENTAGE 01 Material 15 % 02 Equipment/Rental 15 % 03 Labor/Subcontractor 15 % ADJUSTMENTS Provide any anticipated rate/cost adjustments as a separate attachment, if necessary. NIA 25 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, Contractor 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", Contractor 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. Contractor 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. Contractor shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725.5. Contractor and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If Contractor or any subcontractor ceases to be registered with DIR at any time during the duration of the project, Contractor shall immediately notify City. 4. Pursuant to Labor Code Section 1771.4, Contractor's Services are subject to compliance monitoring and enforcement by DIR. Contractor 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. Contractor acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Contractor shall post such rates at each job site covered by this Agreement. 6. Contractor 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. Contractor 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 Contractor or by any subcontractor. 7. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records. 8. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations, Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor 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, Contractor and each of its subcontractors shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement. 9. Contractor 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. Contractor 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 Contractor or any subcontractor becomes debarred or suspended during the duration of the project, Contractor shall immediately notify City. 10. Contractor acknowledges that eight hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Contractor shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by Contractor 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 Contractor 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, Contractor hereby certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." 12. For every subcontractor who will perform work on the project, Contractor shall be responsible for such subcontractor's compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Contractor 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. Contractor 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. Contractor shall diligently take corrective action to halt or rectify any failure. 13. To the maximum extent permitted by law, Contractor shall indemnify, hold harmless and defend (at Contractor'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 Contractor, 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 Contractor under this Section shall survive the termination of the Agreement. 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, Contractor 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", Contractor 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. Contractor 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. Contractor shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725.5. Contractor and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If Contractor or any subcontractor ceases to be registered with DIR at any time during the duration of the project, Contractor shall immediately notify City. 4. Pursuant to Labor Code Section 1771.4, Contractor's Services are subject to compliance monitoring and enforcement by DIR. Contractor 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. Contractor acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Contractor shall post such rates at each job site covered by this Agreement. 6. Contractor 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. Contractor 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 Contractor or by any subcontractor. 7. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records. 8. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations, Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor 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, Contractor and each of its subcontractors shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement. 9. Contractor 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. Contractor 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 Contractor or any subcontractor becomes debarred or suspended during the duration of the project, Contractor shall immediately notify City. 10. Contractor acknowledges that eight hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Contractor shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by Contractor 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 Contractor 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, Contractor hereby certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract." 12. For every subcontractor who will perform work on the project, Contractor shall be responsible for such subcontractor's compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Contractor 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. Contractor 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. Contractor shall diligently take corrective action to halt or rectify any failure. 13. To the maximum extent permitted by law, Contractor shall indemnify, hold harmless and defend (at Contractor'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 Contractor, 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 Contractor under this Section shall survive the termination of the Agreement. i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Steve Myrter, P.E., Director of Public Works SUBJECT: Awarding and Authorizing Execution of a Public Works Agreement with J&L Constructors, Inc. for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107 SUMMARY OF REQUEST: That the City Council adopt Resolution 7134: 1. Approving plans, specifications, and contract documents for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107; and, 2. Approving and awarding a public works agreement to J&L Constructors, Inc., in the amount of $59,900, waiving minor bid irregularities, and rejecting all other bids; and, 3. Authorizing the City Manager to execute the public works agreement for the Navy Reservoir External Cathodic Protection System Improvements to J&L Constructors, Inc.; and, 4. Authorizing the City Manager to approve additional work requests up to $10,000 and inspection services up to $10,100 in connection with the Project, in the cumulative not -to -exceed amount of $80,000; and, 5. Approving Budget Amendment BA 21-10-01 in the amount of $80,000 for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107. BACKGROUND AND ANALYSIS: The City's three (3) million gallon above -ground reservoir located at the Seal Beach Naval Weapons Station was built in 1963. Given its metal construction and the surrounding marine environment, the reservoir is susceptible to corrosion. Cathodic protection is generally used to combat these situations, a technique that Agenda Item G utilizes a sacrificial metal to attract corrosion, hence, protecting the reservoir's metal surface. The Navy Reservoir cathodic protection system was installed in 2006; however, recent assessments recommend system upgrades. As such, the Navy Reservoir External Cathodic Protection System Improvements (WT2107) was prepared. On March 10, 2021, the City Clerk's office received four (4) bids with the following results: Rank Contractor Total Base Bid Low J&L Constructors, Inc. $ 59,900.00 2 Farwest Corrosion Control Company $ 62,490.00 3 Kay Construction Co. $ 66,050.00 Minako America Corporation dba 4 Minco Construction $ 137,000.00 Based upon the references, qualifications, work experience, and cost, staff recommends deeming J&L Constructors, Inc. as the lowest responsive bidder at $59,900, and awarding the Navy Reservoir External Cathodic Protection System Improvements construction contract to J&L Constructors, Inc. The project plans are available in the City Engineer's office. Staff further recommends authorizing the City Manager to approve additional work requests up to $10,100 and inspection services up to $10,000, in the cumulative not -to -exceed amount of $80,000 for all services performed under the Agreement. As the finalization of the assessment was subsequent to the adoption of the FY 2020-2021 budget, this work was not included in the original Capital Improvement Program. The Navy Reservoir plays an integral role in the City's water system; therefore, staff recommends adopting BA 21-10-01 allocating $80,000 this fiscal year, versus programming this effort into the FY 2021-2022 budget. ENVIRONMENTAL IMPACT: This project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under section 15301 (c) of the CEQA Guidelines. LEGAL ANALYSIS: The City Attorney has reviewed the agreement and approved the resolution as to form. Page 2 FINANCIAL IMPACT: The Navy Reservoir External Cathodic Protection Systems Improvement, WT2107, was identified subsequent to the FY 2020-2021 adopted budget. As such, Budget Amendment BA 21-10-01 will allocate $80,000 for the Project using available fund balance as follows: Revised/ Adopted Proposed Budget Description Account Budget Budget Amendment Water Fund - 019-950-49605 - $ 80,000 $ 80,000 Capital CIP Project Project WT2107 Expenditures The table below presents the estimated breakdown of the Project's construction cost: Description Amount Construction $ 59,900 Contingency $ 10,100 Inspection/Testing $ 10,000 Total $ 80,000 Upon completion of the construction contract, any unspent funds remaining from this project will be returned to the original funding source. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. RECOMMENDATION: That the City Council adopt Resolution 7134: 1. Approving plans, specifications, and contract documents for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107; and, Page 3 2. Approving and awarding a public works agreement to J&L Constructors, Inc., in the amount of $59,900, waiving minor bid irregularities, and rejecting all other bids; and, 3. Authorizing the City Manager to execute the public works agreement for the Navy Reservoir External Cathodic Protection System Improvements to J&L Constructors, Inc.; and, 4. Authorizing the City Manager to approve additional work requests up to $10,000 and inspection services up to $10,100 in connection with the Project, in the cumulative not -to -exceed amount of $80,000; and, 5. Approving Budget Amendment BA 21-10-01 in the amount of $80,000 for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107. SUBMITTED BY: Steve Myrter Steve Myrter, P.E., Director of Public Works NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager Prepared by: Iris Lee, Deputy Public Works Director/City Engineer ATTACHMENTS: A. Resolution 7134 B. Agreement with J&L Constructors, Inc. Page 4 RESOLUTION 7134 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC WORKS AGREEMENT WITH J&L CONSTRUCTORS, INC. FOR NAVY RESERVOIR EXTERNAL CATHODIC PROTECTION SYSTEM IMPROVEMENTS, CIP WT2107 WHEREAS, on January 28, 2021, the City issued a solicitation for bids for the Navy Reservoir External Cathodic Protection System Improvements, CIP WT2107 ("Project"); WHEREAS, on March 10, 2021, the City Clerk's office received four (4) bids in response to the solicitation for bids, and J&L Constructors, Inc. submitted the lowest responsible bid in the amount of $59,900; and, WHEREAS, J&L Constructors, Inc. is a qualified firm to perform the Project. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves the plans and specifications for the Project. SECTION 2. Based on the recitals set forth above, the City Council hereby awards a public works agreement to J&L Constructors, Inc. for the Project in the not -to -exceed amount of $59,900, waives minor bid irregularities, and rejects all other bids. SECTION 3. The City Council hereby authorizes and directs the City Manager to execute the public works agreement on behalf of the City. SECTION 4. The City Council hereby authorizes the City Manager to approve payments for additional work requests in connection with the Project in the cumulative not -to -exceed amount of $10,100. SECTION 5. The City Council hereby authorizes the City Manager to approve payments for inspection and testing in connection with the Project in the cumulative not -to -exceed amount of $10,000. SECTION 6. The City Council hereby approves Budget Amendment BA 21-10-01 allocating $80,000 for the Project as follows: Revised/ Adopted Proposed Budget Description Account Budget Budget Amendment Water Fund - 019-950-49605 - $ 80,000 $ 80,000 Capital CIP Project Project WT2107 Expenditures PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Joe Kalmick, Mayor 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 7134 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk PUBLIC WORKS AGREEMENT NAVY RESERVOIR EXTERNAL CATHODIC PROTECTION SYSTEM IMPROVEMENTS PROJECT CIP NO. WT2107 between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 J&L Constructors, Inc. 29104 Basswood Lake Elsinore, CA 92530 (714) 931-9367 THIS CONTRACT ("Contract") is made as of April 12, 2021, by and between the City of Seal Beach, a California charter city ("City"), and J&L Constructors, Inc., a California corporation ("Contractor"). RR-ITAI R A. WHEREAS, the City Council has approved the plans and specifications for the Navy Reservoir External Cathodic Protection System Improvements ("Project"), WT2107, with respect to design criteria; and B. WHEREAS, Contractor has submitted a Bid to City for the Project dated March 10, 2021 in the amount of $59,000.00 ("Bid" hereinafter). The Bid is attached hereto and contains, among other things, provisions defining the Project scope. NOW, THEREFORE, in consideration of performance by the parties of the mutual promises, covenants, and conditions herein contained, the parties hereto agree as follows: CONTRACT 1. Contractor's Services. 1.1 Scope and Level of Services. For and in consideration of the mutual promises set forth herein, and subject to the terms and conditions set forth in this Contract, Contractor shall perform and complete in good and workmanlike manner all work ("Work") required by this Contract and the documents listed in Subsection 1.2 for the Project. 1.2 Contract Documents. The "Contract Documents" that comprise the agreement between the City and the Contractor are the: Notice Inviting Sealed Bids, Instructions to Bidders, Accepted Bid Proposal Form, Non -Collusion Declaration, Bid Schedule(s), List of Subcontractors, Contractor's Industrial Safety Record, Contractor's Qualification Statement, Bid Security Forms for Check or Bond, Specifications, General and Special Provisions and documents referenced therein, all addenda as prepared prior to the date of Bid opening setting forth any modifications or interpretations of any of said documents, this Contract, Exhibits attached to this Contract, including but not limited to the Performance Bond (Exhibit A), Payment Bond (Exhibit B), Workers' Compensation Insurance Certificate (Exhibit C), Insurance Endorsements (Exhibit D), Acknowledgment of Penal and Civil Penalties Concerning Contractor Licensing Laws (Exhibit E), Labor Law Requirements (Exhibit F), Indemnification and Hold Harmless Contract (Exhibit G), Accepted Bid Proposal Form and any and all supplemental agreements executed amending or extending the Work contemplated and that may be required to complete the Work in a substantial and acceptable manner. These Contract Documents are hereby incorporated into this Contract. 1.3 The Work shall be performed in accordance with the Plans, Specifications and other Contract Documents. Contractor shall furnish at its own expense all labor, materials, equipment and services necessary therefor, except such labor, materials, equipment and services as are specified in the Contract Documents to be furnished by City. 1.4 In the event of any material discrepancy between the express provisions of this Contract and the provisions of the other Contract Documents, the provisions of this Contract shall prevail. 2. Effective Date. This Contract is effective as of April 12, 2021 (the "Effective Date"), and shall remain in full force and effect until Contractor has rendered the services required by this Contract. 3. Payment. For performing and completing the Work in accordance with the Contract Documents, City shall pay Contractor, in full compensation therefor, the amount of $59,900.00 (Fifty Nine Thousand Nine Hundred and 00/XX dollars), subject to any additions and deletions pursuant to the terms of the Contract Documents. Said sum shall constitute payment in full for all Work performed hereunder, including, without limitation, all labor, materials, equipment, tools and services used or incorporated in the Work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of the Work as specified in the Contract Documents. City shall make payments to Contractor on account of the Contract sum at the time, in the manner, and upon the conditions specified in the Contract Documents. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 4. Contractor's Personnel. 4.1 All Work shall be performed by Contractor or under Contractor's direct supervision, and all personnel shall possess the qualifications, permits, and licenses required by state and local law and by the Notice Inviting Bids/Instructions to Bidders to perform such Services, including, without limitation, a City of Seal Beach business license as required by the Seal Beach Municipal Code. 4.2 Contractor shall be responsible for payment of all employees' wages and benefits, and shall comply with all requirements pertaining to employer's liability, workers' compensation, unemployment insurance, and Social Security. Contractor shall fully comply with the workers' compensation law regarding Contractor and Contractor's employees. 4.3 Contractor shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liabilities, damages, claims, costs and expenses of any nature to the extent arising from Contractor's alleged violations of personnel practices. 4.4 Contractor is, and shall at all times remain as to City, a wholly independent contractor. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act as an agent of City. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor's employees, except as set forth in this Contract. Contractor shall not, at any time, or in 2 any manner, represent that it or any of its officers, agents, or employees are in any manner employees of City. Contractor shall pay all required taxes on amounts paid to Contractor under this Contract, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the Work performed pursuant to this Contract. 4.5 City shall have the right to offset against the amount of any fees due to Contractor under this Contract any amount due to City from Contractor as a result of Contractor's failure to promptly pay to City any reimbursement or indemnification arising under this Section 4. 5. Indemnification. 5.1 Contractor's Duty. Contractor shall defend, indemnify, and hold the City, its elected officials, officers, employees, volunteers, agents, and those City agents serving as independent contractors in the role of City officials (collectively "Indemnitees") free and harmless from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, bid protests, stop notices, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a "Claim," collectively, "Claims"), in any manner arising out of or incident to the performance of the Contract, including without limitation, the payment of all consequential damages and attorneys' fees and other related costs and expenses. Further, Contractor shall appoint competent defense counsel, at Contractor's own cost, expense and risk, to defend any and all such suits, actions or other legal proceedings of every kind arising out of or incident to the performance of the Contract that may be brought or instituted against Indemnitees. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or the other Indemnitees in any such suit, action, or other legal proceeding arising out of or incident to the performance of the Contract. Contractor shall reimburse the City and the other Indemnitees, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Contractor or Indemnitees. This indemnity shall apply to all Claims and liability regardless of whether any insurance policies are applicable. 5.2 Bid Protests. In addition to its obligations pursuant to Section 5.1, Contractor shall reimburse the City for all attorneys' fees and costs incurred by City in connection with, arising out of or incident to any Bid protest. 5.3 Civil Code Exception. Nothing in this Section 5 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 3 negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. 5.4 Nonwaiver of Rights. Indemnitees do not, and shall not, waive any rights that they may possess against Contractor because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Contract. 5.5 Waiver of Right of Subrogation. Contractor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation against the Indemnitees, while acting within the scope of their duties, from all claims, losses, and liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor. 5.6 Survival. The provisions of this Section 5 shall survive the termination of the Contract and are in addition to any other rights or remedies that Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against a Contractor shall be conclusive in favor of the Indemnitee's right to recover under this indemnity provision. 6. Insurance. 6.1 Liability Insurance. Contractor shall procure and maintain in full force and effect for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by Contractor, and its agents, representatives, employees and subcontractors. The policy limits set forth below do not act as a limitation upon the amount of indemnification to be provided by Contractor. Contractor shall complete and execute the following documents attached as Exhibits hereto and incorporated herein by this reference: 6.1.1 Exhibit D-1 Commercial General Liability. 6.1.2 Exhibit D-2 Automobile Liability. Additional Insured Endorsement - Additional Insured Endorsement - 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). 4 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. 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. 5 6.5.3 Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 6.5.4 Each insurance policy required by this Section 6 shall be endorsed to state that coverage shall not be canceled or materially modified except after 30 days prior written notice by first class mail has been given to City. 6.5.5 Each insurance policy, except for any professional liability policy, required by this Section 6 shall expressly waive the insurer's right of subrogation against City and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of City or agency officials. 6.6 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VIII unless waived in writing by City's Risk Manager. 6.7 Verification of Coverage. All insurance coverages shall be confirmed by execution of endorsements on forms approved by the City. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by City before services commence. As an alternative to City forms, Contractor's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 7. Liquidated Damages. Should the Contractor fail to complete the Project, or any part thereof, in the time agreed upon in the Contract, the Contractor shall reimburse the City for the additional expense and damage for each calendar day that the Contract remains uncompleted after the Contract completion date. It is agreed that the amount of such additional expense and damage incurred by reason of failure to complete the Contract is the per diem rate of $500.00 per calendar day. Such amount is hereby agreed upon as liquidated damages for the loss to the City resulting from the failure of the Contractor to complete the Project within the allotted time and to the value of the operation of the works dependent thereon. It is expressly understood and agreed that this amount is a reasonable amount and is established in lieu of damages that are incapable of calculation at the inception hereof; and this amount is not to be considered in the nature of a penalty. The City shall have the right to deduct such damages from any amount due, or that may become due to the Contractor, or the amount of such damages shall be due and collectible from the Contractor or the Contractor's Surety. Progress payments made after the scheduled completion date shall not constitute a waiver of liquidated damages. 8. Suspension. City may, in writing, order Contractor to suspend all or any part of the Contractor's Services for the convenience of City or for work stoppages beyond the control of City or Contractor. A suspension of the Services does not void this Contract. NO 9. Notices. Any notices, bills, invoices, or reports authorized or required by this Contract shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during Contractor's and City's regular business hours or by facsimile before or during Contractor's regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Contract, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this Section. All notices shall be addressed as follows: If to City: City Clerk City of Seal Beach 211 -8th Street Seal Beach, California 90740 Telephone: (562) 431-2527 Fax: (562) 493-9857 With a copy to: Public Works Director City of Seal Beach 211 -8th Street Seal Beach, California 90740 If to Contractor: J&L Constructors, Inc. 29104 Basswood Lake Elsinore, CA 92530 Telephone: (714) 931-9637 Attn: Byrson W. Miller, President 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 7 commence any legal action or proceeding to enforce or interpret the provisions of this Contract, each party shall be responsible for their own attorneys' fees. 14. Construction. The validity, interpretation, and performance of this Contract shall be controlled by and construed under the laws of the State of California, with venue in Orange County, California. In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Contract shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Contract or who drafted that portion of the Contract. 15. Workers' Compensation. Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract." 16. Prevailing Wages. The City and the Contractor acknowledge that the Project is a public work to which prevailing wages apply. 17. Entire Contract. This Contract, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between Contractor and City. This Contract supersedes all prior oral or written negotiations, representations, or agreements. This Contract may not be amended, nor any provision or breach hereof waived, except in a writing signed by the parties which expressly refers to this Contract. 18. Severability. The invalidity in whole or in part of any provisions of this Contract shall not void or affect the validity of the other provisions of this Contract. 19. Titles and Headings. The titles and headings used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it. 20. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder. 21. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. 0 IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Contract as of the date first written above. CITY OF SEAL BEACH IS Jill R. Ingram, City Manager Attest: IN Glora D. Harper, City Clerk Approved �,s to F By: . Craig Steele, City Attorney CONTRACTOR: J&L Constructors, Inc., a Calfornia corporation By: J & L Constructors Inc. Name: Bryson W Miller Title: Owner/President By: J & L Constructors Inc. Name: Vanessa Miller Title: Secretary/Treasurer (P ase note, two signatures rations pursuant to Calitor is -corporations Code Section 313. �NG{NEep,'I1/ 4Q� Ov* I I V11-1- 0 uired for EXHIBIT A FAITHFUL PERFORMANCE BOND Bond No. PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS the City of Seal Beach ("City"), has awarded to ("Principal") (Name and address of Contractor) a contract (the "Contract") for the Work described as follows: NAVY RESERVOIR EXTERNAL CATHODIC PROTECTION SYSTEM IMPROVEMENTS (CIP NO. WT2107) (Project name) WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract. NOW, THEREFORE, we, the undersigned Principal, and (Name and address of Surety) ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Dollars ($ ), this amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal's part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto. IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body. Dated: "Principal" "Surety" By: By: Its Its By: By: Its Its (Seal) (Seal) Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located. EXHIBIT B PAYMENT BOND Bond No. PAYMENT BOND (LABOR AND MATERIALS) KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS the City of Seal Beach ("City"), State of California, has awarded to ("Principal") (Name and address of Contractor) a contract (the "Contract") for the Work described as follows: NAVY RESERVOIR EXTERNAL CATHODIC PROTECTION SYSTEM IMPROVEMENTS (CIP NO. WT2107) (Project name) WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. NOW, THEREFORE, we, the undersigned Principal, and (Name and address of Surety) ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars ($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond. Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition. IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body. Dated: "Principal" By: Its By: Its (Seal) "Surety" By: Its By: Its (Seal) Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located. EXHIBIT C WORKER'S COMPENSATION INSURANCE CERTIFICATE WORKERS' COMPENSATION CERTIFICATE OF INSURANCE WHEREAS, the City of Seal Beach ("City") has required certain insurance to be provided by: NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policy or policies described below to the following named insureds and that the same are in force at this time: 1. This certificate is issued to: City of Seal Beach City Hall 211 8t" Street Seal Beach, California 90740 The insureds under such policy or policies are: 2. Workers' Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows: M Policy Number Effective Date Expiration Date Its Authorized Representative EXHIBIT D-1 ADDITIONAL INSURED ENDORSEMENT COMMERCIAL GENERAL LIABILITY [INSERT INSURANCE CERTIFICATE SHOWING COMMERCIAL GENERAL LIABILITY] ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY Name and address of named insured ("Named Insured'): Name and address of insurance company ("Company'): General description of agreement(s), permit(s), license(s), and/or activity(ies) insured: Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1. The City of Seal Beach ("City"), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third -party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds. 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereof. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. 9. This endorsement and all notices given hereunder shall be sent to City at: City Manager City of Seal Beach City Hall 211 8th Street Seal Beach, CA 90740 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH THIS POLICY PERIOD LIMITS OF ENDORSEMENT ATTACHES FROM/TO LIABILITY 11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes: ❑ Contractual Liability ❑ Owners/Landlords/Tenants ❑ Manufacturers/Contractors ❑ Products/Completed Operations ❑ Broad Form Property Damage ❑ Extended Bodily Injury ❑ Broad Form Comprehensive ❑ General Liability Endorsement ❑ Explosion Hazard ❑ Collapse Hazard ❑ Underground Property Damage ❑ Pollution Liability ❑ Liquor Liability 8 12. A ❑ deductible or ❑ self-insured retention (check one) of $ applies to all coverage(s) except: if none, so state). The deductible is applicable ❑ per claim or ❑ per occurrence (check one). 13. This is an ❑ occurrence or ❑ claims made policy (check one). 14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed Telephone No.: (_) 20 Signature of Authorized Representative (Original signature only; no facsimile signature or initialed signature accepted) EXHIBIT D-2 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY [INSERT INSURANCE CERTIFICATE SHOWING AUTOMOBILE LIABILITY] ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY Name and address of named insured ("Named Insured'): Name and address of insurance company ("Company'): General description of agreement(s), permit(s), license(s), and/or activity(ies) insured: Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1. The City of Seal Beach ("City"), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third -party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds. 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. 9. This endorsement and all notices given hereunder shall be sent to City at: City Manager City of Seal Beach City Hall 211 8th Street Seal Beach, CA 90740 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH THIS POLICY PERIOD LIMITS OF ENDORSEMENT ATTACHES FROM/TO LIABILITY 11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes: ❑ Any Automobiles ❑ All Owned Automobiles ❑ Non -owned Automobiles ❑ Hired Automobiles ❑ Scheduled Automobiles ❑ Garage Coverage ❑ Truckers Coverage ❑ Motor Carrier Act ❑ Bus Regulatory Reform Act ❑ Public Livery Coverage El LEI 12. A ❑ deductible or ❑ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable ❑ per claim or ❑ per occurrence (check one). 13. This is an ❑ occurrence or ❑ claims made policy (check one). 14. This endorsement is effective on Policy Number at 12:01 a.m. and forms a part of I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed , 20 Signature of Authorized Representative (Original signature only; no facsimile signature Telephone No.: (_) or initialed signature accepted) EXHIBIT E ACKNOWLEDGMENT OF PENAL AND CIVIL PENALTIES CONCERNING CONTRACTOR LICENSING LAWS STATEMENT ACKNOWLEDGING PENAL AND CIVIL PENALTIES CONCERNING THE CONTRACTORS' LICENSING LAWS [Business & Professions Code § 7028.15] [Public Contract Code § 20103.5] I, the undersigned, certify that I am aware of the following provisions of California law and that I, or the entity on whose behalf this certification is given, hold a currently valid California contractor's license as set forth below (required at time of award): Business & Professions Code § 7028.15: (a) It is a misdemeanor for any person to submit a bid to a public agency in order to engage in the business or act in the capacity of a contractor within this state without having a license therefore, except in any of the following cases: (1) The person is particularly exempted from this chapter. (2) The bid is submitted on a state project governed by Section 10164 of the Public Contract Code or on any local agency project governed by Section 20104 [now § 20103.5] of the Public Contract Code. (b) If a person has been previously convicted of the offense described in this section, the court shall impose a fine of 20 percent of the price of the contract under which the unlicensed person performed contracting work, or four thousand five hundred dollars ($4,500), whichever is greater, or imprisonment in the county jail for not less than 10 days nor more than six months, or both. In the event the person performing the contracting work has agreed to furnish materials and labor on an hourly basis, "the price of the contract" for the purposes of this subdivision means the aggregate sum of the cost of materials and labor furnished and the cost of completing the work to be performed. (c) This section shall not apply to a joint venture license, as required by Section 7029.1. However, at the time of making a bid as a joint venture, each person submitting the bid shall be subject to this section with respect to his or her individual licensure. (d) This section shall not affect the right or ability of a licensed architect, land surveyor, or registered professional engineer to form joint ventures with licensed contractors to render services within the scope of their respective practices. (e) Unless one of the foregoing exceptions applies, a bid submitted to a public agency by a contractor who is not licensed in accordance with this chapter shall be considered non-responsive and shall be rejected by the public agency. Unless one of the foregoing exceptions applies, a local public agency shall, before awarding a contract or issuing a purchase order, verify that the contractor was properly licensed when the contractor submitted the bid. Notwithstanding any other provision of law, unless one of the foregoing exceptions applies, the registrar may issue a citation to any public officer or employee of a public entity who knowingly awards a contract or issues a purchase order to a contractor who is not licensed pursuant to this chapter. The amount of civil penalties, appeal, and finality of such citations shall be subject to Sections 7028.7 to 7028.13, inclusive. Any contract awarded to, or any purchase order issued to, a contractor who is not licensed pursuant to this chapter is void. (f) Any compliance or noncompliance with subdivision (e) of this section, as added by Chapter 863 of the Statutes of 1989, shall not invalidate any contract or bid awarded by a public agency during which time that subdivision was in effect. (g) A public employee or officer shall not be subject to a citation pursuant to this section if the public employee, officer, or employing agency made an inquiry to the board for the purposes of verifying the license status of any person or contractor and the board failed to respond to the inquiry within three business days. For purposes of this section, a telephone response by the board shall be deemed sufficient. Public Contract Code § 20103.5: In all contracts subject to this part where federal funds are involved, no bid submitted shall be invalidated by the failure of the bidder to be licensed in accordance with the laws of this state. However, at the time the contract is awarded, the contractor shall be properly licensed in accordance with the laws of this state. The first payment for work or material under any contract shall not be made unless and until the Registrar of Contractors verifies to the agency that the records of the Contractors' State License Board indicate that the contractor was properly licensed at the time the contract was awarded. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by law, including, but not limited to, any appropriate disciplinary action by the Contractors' State License Board. The agency shall include a statement to that effect in the standard form of pre -qualification questionnaire and financial statement. Failure of the Bidder to obtain proper and adequate licensing for an award of a contract shall constitute a failure to execute the Contract and shall result in the forfeiture of the security of the Bidder. A, B, C-20, C-53 License No.: 974212 Class: Expiration Date: 3/31/21 Date: 3/17/21 EXHIBIT F LABOR LAW REQUIREMENTS AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS [Labor Code §§ 1720, 1773.8, 1775, 1776, 1777.5, 1813, 1860, 1861, 3700] The undersigned Contractor certifies that it is aware of and hereby agrees to fully comply with the Following provisions of California law: 1. Contractor acknowledges that this Contract is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency ("Agency") and agrees to be bound by all the provisions thereof as though set forth in full herein. 2. Contractor agrees to comply with the provisions of California Labor Code Section 1773.8 which requires the payment of travel and subsistence payments to each worker needed to execute the Work to the extent required by law. 3. Contractor agrees to comply with the provisions of California Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the Agency, forfeit not more than fifty dollars ($50) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under the Contract by Contractor or by any subcontractor. 4. Contractor agrees to comply with the provisions of California Labor Code Section 1776 which require Contractor and each subcontractor to (1) keep accurate payroll records, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the Agency of the location of the records. The Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors. 5. Contractor agrees to comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors. 6. Contractor agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the Agency, forfeit twenty-five dollars ($25) for each worker employed in the execution of the Contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code. 7. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisio s before commencing the performance of the Work of this Contract." ENG' ERW Date 3/17/21 Signature EXHIBIT G INDEMNIFICATION AND HOLD HARMLESS AGREEMENT INDEMNIFICATION AND HOLD HARMLESS AGREEMENT AND WAIVER OF SUBROGATION AND CONTRIBUTION OFFICIAL TITLE OF PROJECT: NAVY RESERVOIR EXTERNAL CATHODIC PROTECTION SYSTEM IMPROVEMENTS (CIP NO. WT2107) Indemnitor(s) (list all names): J & L Constructors Inc. Bryson W Miller To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and expense, to defend, protect, indemnify, and hold harmless the City of Seal Beach and its elected officials, officers, attorneys, agents, employees, volunteers, successors, and assigns (collectively "Indemnitees") from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith (collectively "Liabilities"), arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act, failure to act, error, or omission of Indemnitor or any of its officers, agents, servants, employees, subcontractors, materialmen, suppliers or their officers, agents, servants or employees, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to the above -referenced contract, agreement, license, or permit (the "Contract") or the performance or failure to perform any term, provision, covenant, or condition of the Contract, including this indemnity provision. This indemnity provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence. This indemnity provision shall survive the termination of the Contract and is in addition to any other rights or remedies which Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against an Indemnitee shall be conclusive in favor of the Indemnitee's right to recover under this indemnity provision. Indemnitor shall pay Indemnitees for any attorneys fees and costs incurred in enforcing this indemnification provision. Notwithstanding the foregoing, nothing in this instrument shall be construed to encompass (a) Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying Contract is subject to Civil Code § 2782(a) or (b) the contracting public agency's active negligence to the limited extent that the underlying Contract is subject to Civil Code § 2782(b). This indemnity is effective without reference to the existence or applicability of any insurance coverage which may have been required under the Contract or any additional insured endorsements which may extend to Indemnitees. Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligence by the Indemnitees. In the event there is more than one person or entity named in the Contract as an Indemnitor, then all obligations, liabilities, covenants and conditions under this instrument shall be joint and several. "Indemnitor" Name Bryson W Miller :� oale Name: By: J & L Constructor nc. By: Its Its i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Steve Myrter, P.E., Director of Public Works SUBJECT: Notice of Completion for Beach Yard Perimeter Wall Improvements, CIP BP2002 SUMMARY OF REQUEST: That the City Council adopt Resolution 7135: 1. Accepting the Beach Yard Perimeter Wall Improvements, CIP BP2002, by Horizons Construction Company Int'I, Inc. of $69,285.26; and, 2. Directing the City Clerk to file a "Notice of Completion" with the Orange County Clerk -Recorder within fifteen (15) days from the date of acceptance and to release retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. BACKGROUND AND ANALYSIS: The City's Beach Yard is located in a highly visible location and borders the San Gabriel Bike Trail, 1st Street Parking lot, and the highly anticipated River's End Park. Staff determined that the yard's perimeter fencing was in need of replacement to enhance the location's screening to the public. As such, the Beach Yard Perimeter Wall Improvements was budgeted into the Capital Improvement Program. On September 14, 2020, the City Council adopted Resolution 7070, and awarded a construction contract to Horizons Construction Company Int'I, Inc. for the Project in the amount of $64,761.54 and established a construction contingency not -to - exceed amount of $5,000. The Project has been completed to the satisfaction of the City Engineer. The Project was inspected and meets all standards and requirements within the Project specifications. It is requested that the City Council formally accept the Project and direct staff to file a Notice of Completion with the Orange County Clerk's Office, and release the retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. Agenda Item H 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 d). LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution as to form. FINANCIAL IMPACT: The approved construction contract budget plus established construction contingency totals $69,761.54. The table below presents a breakdown of the total construction Project cost: Description Amount Construction Base Bid Items $ 64,761.54 Contract Change Orders $ 4,523.72 Project Cost $ 69,285.26 One (1) change order in the amount of $4,523.72 was issued to upgrade the windscreen to provide additional screening opacity. 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 7135: 1. Accepting the Beach Yard Perimeter Wall Improvements, CIP BP2002, by Horizons Construction Company Int'l, Inc. of $69,285.26; and, 2. Directing the City Clerk to file a "Notice of Completion" with the Orange County Clerk -Recorder within fifteen (15) days from the date of acceptance and to release retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. Page 2 SUBMITTED BY: Steve Myrter Steve Myrter, P.E., Director of Public Works NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager Prepared by: Iris Lee, Deputy Public Works Director/City Engineer ATTACHMENTS: A. Resolution 7135 B. Notice of Completion Page 3 RESOLUTION 7135 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL ACCEPTING COMPLETION OF THE BEACH YARD PERIMETER WALL IMPROVEMENTS, CIP BP2002, AND DIRECTING THE FILING OF A NOTICE OF COMPLETION FOR THE PROJECT THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City accepts the completion of the Beach Yard Perimeter Wall Improvements (Project), CIP BP2002, by Horizons Construction Company Int'I, Inc. in the amount of $69,285.26 for the work performed. Section 2. The City Clerk is hereby directed to file a "Notice of Completion" for the Project with the Orange County Clerk -Recorder within fifteen (15) days of the date of this resolution and to release retention 35 days after the recordation of the Notice of Completion contingent upon no claims being filed on the Project. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Joe Kalmick, 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 7135 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO CITY OF SEAL BEACH Attn: City Clerk 211 - 8th Street Seal Beach, CA 90740 Space of above this line for Recorder's use. *** No Recording Fee Pursuant to Government Code Section 6103, 27383 **** NOTICE OF COMPLETION Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion. Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is: City of Seal Beach. 3. The address of the owner is: 211 — 8th Street, Seal Beach, CA 90740. 4. The nature of the interest or estate of the owner is: In Fee. The City of Seal Beach. 5. A work of improvement on the property hereinafter is described as substantially completed on March 12, 2021. The work was Beach Yard Perimeter Wall Improvements, CIP BP2002. 6. The name of the contractor(s), if any, for such improvement was: Horizons Construction Company Int'I, Inc.. The date of the Contract Award was September 14, 2020. 7. The property on which said work of improvement was completed in the City of Seal Beach, County of Orange, State of California, and is described as follows: Adjacent to 95 1St Street. Date: Director of Public Works, P.E, City of Seal Beach Signature of owner or corporate officer of owner named in paragraph 2 or agent. VERIFICATION I, the undersigned, say: the Director of Public Works declarant of the foregoing notice of completion; have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury the foregoing is true and correct. Executed on , 2021, at Seal Beach, California. (Date of Signature) Director of Public Works, City of Seal Beach i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Steve Myrter, P.E., Public Works Director SUBJECT: Notice of Completion for FY 2019-2020 Annual Local Paving Program, CIP ST2002 SUMMARY OF REQUEST: That the City Council adopt Resolution 7136: Accepting the FY 2019-2020 Annual Local Paving Program, CIP ST2002 by Hardy & Harper, Inc. in the amount of $324,877.96; and, 2. Directing the City Clerk to file a "Notice of Completion" with the Orange County Clerk -Recorder within fifteen (15) days from the date of acceptance and to release retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. BACKGROUND AND ANALYSIS: The FY 2019-2020 Annual Local Paving Program consisted of grinding the existing pavement and installing an asphalt overlay to selected streets as identified in the 2018 Pavement Management Program report. These streets include - 1 . nclude: 1. Daisy Street — Almond Avenue to Birchwood Avenue 2. Violet Street — Elder Avenue to Fir Avenue 3. Oleander Street — Almond Avenue to Fir Avenue 4. Fir Avenue — Rose Street to Heather Street 5. Main Street - Pacific Coast Highway to Central Avenue On April 13, 2020, the City Council adopted Resolution 7015, and awarded a contract to Hardy & Harper, Inc. for the Project in the amount of $311,000 and established a construction contingency not -to -exceed amount of $46,650. The Project has been completed to the satisfaction of the City Engineer. The Project was inspected and meets all standards and requirements within the Project specifications. It is requested that the City Council formally accept the Project, direct staff to file a Notice of Completion with the Orange County Clerk's Office, Agenda Item I and release the retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. ENVIRONMENTAL IMPACT: This Project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under section 15301 (c) of the CEQA Guidelines. LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution as to form. FINANCIAL IMPACT: The approved construction contract budget plus established construction contingency totals $357,650. The table below presents a breakdown of the total construction Project cost: Description Amount Construction Base Bid Items $308,248.51 Contract Change Orders $ 16,629.45 Project Cost $324,877.96 The approved construction contract in the amount of $311,000 was awarded based on design quantities. The construction base bid total of $308,248.51 was slightly lower due to a difference in field measure quantities compared to the original design. A $46,650 contract contingency was established at the time of construction contract award. A total of $16,629.45 of the contingency was utilized to bifurcate the contract amidst the onset of COVID-19. Main Street was constructed in Spring 2020 where lower -than -normal traffic volume was experienced. The four (4) College Park East (CPE) streets were postponed to Fall 2020 to minimize residential disturbance with the stay-at-home order. 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 RECOMMENDATION: That the City Council adopt Resolution 7136: Accepting the FY 2019-2020 Annual Local Paving Program, CIP ST2002 by Hardy & Harper, Inc. in the contract amount of $324,877.96; and, 2. Directing the City Clerk to file a "Notice of Completion" with the Orange County Clerk -Recorder within fifteen (15) days from the date of acceptance and to release retention 35 days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. SUBMITTED BY: Steve Myrter Steve Myrter, P.E., Public Works Director Prepared by: Denice Bailey, Assistant Engineer ATTACHMENTS: A. Resolution 7136 B. Notice of Completion Page 3 NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager RESOLUTION 7136 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL ACCEPTING COMPLETION OF THE FY 2019-2020 ANNUAL LOCAL PAVING PROGRAM, CIP ST2002, AND DIRECTING THE FILING OF A NOTICE OF COMPLETION FOR THE PROJECT THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City accepts the completion of the FY 2019-2020 Annual Local Paving Program (Project), CIP ST2002, by Hardy & Harper, Inc. in the amount of $324,877.96 for the work performed. Section 2. The City Clerk is hereby directed to file a "Notice of Completion" for the Project with the Orange County Clerk -Recorder within fifteen (15) days of the date of this resolution and to release retention 35 days after the recordation of the Notice of Completion contingent upon no claims being filed on the Project. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Joe Kalmick, 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 7136 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO CITY OF SEAL BEACH Attn: City Clerk 211 - 8th Street Seal Beach, CA 90740 Space of above this line for Recorder's use. *** No Recording Fee Pursuant to Government Code Section 6103, 27383 **** NOTICE OF COMPLETION Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion. Notice is hereby given that: 1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2. The full name of the owner is: City of Seal Beach. 3. The address of the owner is: 211 — 8th Street, Seal Beach, CA 90740. 4. The nature of the interest or estate of the owner is: In Fee. The City of Seal Beach. 5. A work of improvement on the property hereinafter is described as substantially completed on March 03, 2021. The work was FY 2019-2020 Annual Local Paving Program, CIP ST2002. 6. The name of the contractor(s), if any, for such improvement was: Hardy & Harper, Inc. The date of the Contract Award was April 13, 2020. 7. The property on which said work of improvement was completed in the City of Seal Beach, County of Orange, State of California, and is described as follows: Various citywide locations. Date: Director of Public Works, P.E, City of Seal Beach Signature of owner or corporate officer of owner named in paragraph 2 or agent. VERIFICATION I, the undersigned, say: the Director of Public Works declarant of the foregoing notice of completion; have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury the foregoing is true and correct. Executed on , 2021, at Seal Beach, California. (Date of Signature) Director of Public Works, City of Seal Beach ��DE SEAL @�9y'4 G� HZ'S AGENDA STAFF REPORT DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Steve Myrter, P.E. , Public Works Director SUBJECT: Awarding and Authorizing Execution of a Public Works Agreement with Vincor Construction, Inc. for the Police Department Outside Locker Replacement Project, CIP BG2103 SUMMARY OF REQUEST: That the City Council adopt Resolution 7137: 1. Approving the contract documents for the Police Department Outside Locker Replacement Project, BG2103; and, 2. Approving and awarding a public works agreement to Vincor Construction, Inc. in the amount of $49,650.85, 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 a public works agreement for construction services to Vincor Construction, Inc.; and, 4. Authorizing the City Manager to approve additional work requests up to $5,000, and inspection services up to $5,000, in connection with the Project, in the cumulative not -to -exceed amount of $10,000. BACKGROUND AND ANALYSIS: The Police Department outside lockers are utilized by police personnel, including Senior Community Service Officers. These lockers provide storage for patrol gear, rain gear, first aid equipment, and daily work necessities. Twenty four lockers were originally installed in the 1980's, and later refurbished in 2008 during a Police Station Remodeling project. Parts to service the Police Department lockers, and material to provide additional capacity for the expanded staff, are no longer produced. As such, staff solicited construction services to replace the existing Police Department lockers utilizing The Gordian Group EZIQC — Contract #: CA-08-SL-B-B-030618-VCI, as permitted by City of Seal Beach Agenda Item J Municipal Code Section 3.20.025(D). The code provides for 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 under this cooperative purchasing program are competitively solicited and provides the best overall government pricing. On March 26, 2021, the City received a responsible and responsive bid from Vincor Construction, Inc. (Vincor) in the amount of $49,650.85. The cost proposal is based on a complete replacement for Police Department outside lockers. Based on Vincor's references, qualifications, and previous work experience, staff recommends awarding a construction contract to Vincor Construction, Inc. for the Police Department Outside Locker Replacement Project. Staff further recommends authorizing the City Manager to approve additional work requests to up $5,000, and inspection services up to $5,000, for a cumulative not -to -exceed amount of $10,000. ENVIRONMENTAL IMPACT: This Project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under Section 15302 Subsection (b) as the replacement of a commercial structure with a new structure of substantially the same size, purpose, and capacity. LEGAL ANALYSIS: The City Attorney has reviewed the agreement and approved the resolution as to form. FINANCIAL IMPACT: The FY 2020-2021 Capital Improvement Program allocates $135,000 for Police Department Headquarters Building and Site Upgrades. The table below presents the estimated breakdown of the Project's construction cost: Description Amount Construction $ 49,650.65 Contingency $ 5,000.00 Inspection/Testing $ 5,000.00 Total $ 59,650.65 Upon completion of the public works agreement, any unspent funds remaining from this project will be returned to the original funding source STRATEGIC PLAN: This item is not applicable to the Strategic Plan. Agenda Item J MEASURE BB: This item is applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. RECOMMENDATION: That the City Council adopt Resolution 7137: 1. Approving the contract documents for the Police Department Outside Locker Replacement Project, BG2103; and, 2. Approving and awarding a public works agreement to Vincor Construction, Inc. in the amount of $49,650.85, 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 a public works agreement for construction services to Vincor Construction, Inc.; and, 4. Authorizing the City Manager to approve additional work requests up to $5,000, and inspection services up to $5,000, in connection with the Project, in the cumulative not -to -exceed amount of $10,000. SUBMITTED BY: Steve Myrter Steve Myrter, P.E., Public Works Director NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager Prepared by: Iris Lee, Deputy Public Works Director/City Engineer ATTACHMENTS: A. Resolution 7137 B. Agreement with Vincor Construction, Inc. Agenda Item J RESOLUTION 7137 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC WORKS AGREEMENT WITH VINCOR CONSTRUCTION, INC. FOR POLICE DEPARTMENT OUTSIDE LOCKER REPLACEMENT PROJECT, CIP BG2103 WHEREAS, the City solicited proposals for locker replacements for the Police Department Outside Locker Replacement Project, CIP BG2103 (Project), utilizing The Gordian Group EZIQC cooperative purchasing program pursuant to the exemptions 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 Vincor Construction, Inc. (Vincor) in the amount of $49,650.85 for the Project; and, WHEREAS, Vincor is a qualified firm to perform the Project. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves the contract documents for the Project. SECTION 2. Based on the recitals set forth above, the City Council hereby awards a public works agreement to Vincor Construction, Inc. for the Project in the not -to -exceed amount of $49,650.85. SECTION 3. The City Council hereby authorizes and directs the City Manager to execute the public works agreement on behalf of the City. SECTION 4. The City Council hereby authorizes the City Manager to approve payments for additional work requests in connection with the Project in the cumulative not -to -exceed amount of $5,000. SECTION 5. The City Council hereby authorizes the City Manager to approve payments for inspection and testing in connection with the Project in the cumulative not -to -exceed amount of $5,000. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Joe Kalmick, 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 7137 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk PUBLIC WORKS AGREEMENT POLICE DEPARTMENT OUTSIDE LOCKER REPLACEMENT PROJECT PROJECT C P NO. BG2103 between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 M Vincor Construction, Inc. 2651 Saturn Street Brea, CA 92821 (714) 528-2900 This Contract ("Contract") is made as of April 12, 2021, by and between the City of Seal Beach, a California charter city ("City"), and Vincor Construction, Inc., a California corporation ("Contractor"). Page 1 of 13 RECITALS A. WHEREAS, the City Council has approved the plans and specifications for the Police Department Outside Locker Replacement Project, CIP BG2103 ("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-B-B-030618-VCI. C. WHEREAS, Contractor submitted a bid to the City for the Project, dated March 26, 2021, in the amount of $49,650.85 ("Accepted Bid" hereinafter), attached hereto as Exhibit K and incorporated herein by reference, which constitutes the lowest acceptable bid. The Accepted Bid contains, among other things, provisions defining the Project scope. D. WHEREAS, Contractor is a California licensed "B" General Building Contractor (State Contractor's license number (License #763743, DIR #1000009803). 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 the mutual promises set forth herein, and subject to the terms and conditions set forth in this Contract, Contractor shall perform and complete in good and workmanlike manner all work ("Work") required by this Contract and the documents listed in Subsection 1.2 for the Project. 1.2 Contract Documents. The "Contract Documents" that comprise the agreement between the City and the Contractor are the: Accepted Bid, Non -Collusion Declaration, List of Subcontractors, 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 Page 2of13 the Performance Bond (Exhibit A), Payment Bond (Exhibit B), Workers' Compensation Insurance Certificate (Exhibit C), Insurance Endorsements (Exhibit D), Acknowledgment of Penal and Civil Penalties Concerning Contractor Licensing Laws (Exhibit E), Labor Law Requirements (Exhibit F), Indemnification and Hold Harmless Contract (Exhibit G), Standard Specifications and Reference Documents (Exhibit H), Non -Collusion Declaration (Exhibit 1), Contractor's Industrial Safety Record (Exhibit J), List of Subcontractors (Exhibit K), Accepted Bid (Exhibit L), Sourcewell Indefinite Quantity Construction Agreement (Exhibit M), 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 April 12, 2021 (the "Effective Date"), and shall remain in full force and effect for until a Notice of Completion has been fled 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 $49,650.85 (Forty Nine Thousand Six Hundred Fifty and 851100 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 3 of 13 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 law, the Seal Beach Municipal Code, and other local laws 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 4 of 13 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 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 Survival. The provisions of this Section 5 shall survive the termination of the Contract and are in addition to any other rights or remedies that Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against a Contractor shall be conclusive in favor of the Indemnitee's right to recover under this indemnity provision. 6. Insurance. 6.1 Liability Insurance. Contractor shall procure and maintain in full force and effect for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by Contractor, and its agents, representatives, employees and subcontractors. The policy limits set forth below do not act as a limitation upon the amount of indemnification to be provided by Contractor. Contractor Page 5 of 13 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. 1187) covering Automobile Liability, code 1 (any auto). 6.2.3 Insurance Services Office form number CG 20 10 11 85 (Ed. 11185) 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. 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: Page 6 of 13 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.VIII unless waived in writing by City's Risk Manager. 6.7 Verification of Coverage. All insurance coverages shall be confirmed by execution of endorsements on forms approved by the City. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by City before services commence. As an alternative to City forms, Contractor's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 7. Liquidated Damages. Should the Contractor fail to complete the Project, or any part thereof, within eighteen 18 weeks of the date of issuance 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 Page 7 of 13 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 fours or by facsimile before or during Contractor's regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Contract, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this Section. All notices shall be addressed as follows: If to City: City Clerk City of Seal Beach 211 -8th Street Seal Beach, California 90740 Telephone: (562) 431-2527 Fax: (562) 493-9857 With a copy to: Public Works Director City of Seal Beach 211 -8th Street Seal Beach, California 90740 If to Contractor: Vincor Construction, Inc. 2651 Saturn Street Brea, CA 92821 Telephone: (714) 528-2900 Attn: John Kang Page 8 of 13 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 pari of Contractor, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 13. Attorneys' Fees. In the event that either party to this Contract shall commence any legal action or proceeding to enforce or interpret the provisions of this Contract, each party shall be responsible for their own attorneys' fees. 14. Construction. The validity, interpretation, and performance of this Contract shall be controlled by and construed under the laws of the State of California, with venue in Orange County, California. In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Contract shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Contract or who drafted that portion of the Contract. 15. Workers' Compensation. Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract." 16. Prevailing Wages. The City and the Contractor acknowledge that the Project is a public work to which prevailing wages apply, and Contractor shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibits E and F, attached hereto and incorporated by this reference herein. 17. Claim Dispute Resolution. Page 9 of 13 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. 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 Page 10 of 13 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 Agreement. 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. 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. Pagel 1 of 13 IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Contract as of the date first written above. CITY OF SEAL BEACH Jill R. Ingram, City Manager Attest: By: Gloria D. Harper, City Clerk Ap=tney By: CONTRACTOR: Vincor Construction, Inc., a California corporation By: Name: Vincent Cortes Titlex Preside t By: Name: Michele Cortes Title: CFO (Please note, two signatures required for corporations pursuant to California Corporations Code Section 313.) Page 12 of 13 FAITHFUL PERFORMANCE BOND Bond No. PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS the City of Sea[ Beach ("City"), has awarded to ("Principal") (Name and address of Contractor) a contract (the "Contract") for the Work described as follows: POLICE DEPARTMENT OUTSIDE LOCKER REPLACEMENT PROJECT PROJECT CIP NO. BG2103) (Project name) WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract. NOW, THEREFORE, we, the undersigned Principal, and (Name and address of Surety) ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Dollars ($ ), this amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal's part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a parry hereto. IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative($) pursuant to authority of its governing body. Dated: "Principal" By: Its By: Its (Seal) "Surety" By: Its By: Its (Seal) Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located. EXHIBIT B 2 -Mil I :1` CTOGI F8 Bond No. PAYMENT BOND (LABOR AND MATERIALS) KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS the City of Seal Beach ("City"), State of California, has awarded to ("Principal") (!Name and address of Contractor) a contract (the "Contract") for the Work described as follows: POLICE DEPARTMENT OUTSIDE LOCKER REPLACEMENT PROJECT PROJECT CIP NO. BG2103) (Project name) WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. NOW, THEREFORE, we, the undersigned Principal, and (Name and address of Surety) ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars ($_ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond. Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 9771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition. IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body. Dated: "Principal" By: Its By: Its (Seal) "Surety" By: Its By: Its (Seal) Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located. EXHIBIT C WORKER'S COMPENSATION INSURANCE CERTIFICATE WORKERS' COMPENSATION CERTIFICATE OF INSURANCE WHEREAS, the City of Seal Beach ("City") has required certain insurance to be provided by: NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policy or policies described below to the following named insureds and that the same are in force at this time: 1. This certificate is issued to: City of Seal Beach City Hall 211 81h Street Seal Beach, California 90740 The insureds under such policy or policies are: 2. Workers' Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows: Policy Number Effective Date Expiration Date Its Authorized Representative EXHIBIT D-1 ADDITIONAL INSURED ENDORSEMENT COMMERCIAL GENERAL LIABILITY [INSERT INSURANCE CERTIFICATE SHOWING COMMERCIAL GENERAL LIABILITY] ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY Name and address of named insured ("Named Insured'): Name and address of insurance company ("Company'). General description of agreement(s), permit(s), Iicense(s), and/or activity(ies) insured. Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1. The City of Seal Beach ("City"), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third -party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds. 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereof. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. 9. This endorsement and all notices given hereunder shall be sent to City at: City Manager City of Seal Beach City Hall 211 81h Street Seal Beach, CA 90740 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH THIS POLICY PERIOD LIMITS OF ENDORSEMENT ATTACHES FROM/TO LIABILITY 11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes: a Contractual Liability ❑ Owners/Landlords/Ten ants o Manufacturers/Contractors ❑ Products/Completed Operations ❑ Broad Form Property Damage ❑ Extended Bodily Injury ❑ Broad Form Comprehensive ❑ General Liability Endorsement © Explosion Hazard ❑ Collapse Hazard ❑ Underground Property Damage ❑ Pollution Liability ❑ Liquor Liability 0. 12. A o deductible or o self-insured retention (check one) of $ applies to all coverage(s) except: if none, so state). The deductible is applicable ❑ per claim or ❑ per occurrence (check one). 13. This is an ❑ occurrence or o claims made policy (check one). 14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number 1. (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed , 20 Telephone No.: (_) Signature of Authorized Representative (Original signature only; no facsimile signature or initialed signature accepted) EXHIBIT D-2 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY [INSERT INSURANCE CERTIFICATE SHOWING AUTOMOBILE LIABILITY] ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY Name and address of named insured ("Named Insured'): Name and address of insurance company ("Company'): General description of agreement(s), permit(s), license(s), and/or activity(ies) insured: Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1. The City of Seal Beach ("City"), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third -party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds. 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. 9. This endorsement and all notices given hereunder shall be sent to City at: City Manager City of Seal Beach City Hall 211 8h Street Seal Beach, CA 90740 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH THIS POLICY PERIOD LIMITS OF ENDORSEMENT ATTACHES FROM/TO LIABILITY 11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes: ❑ Any Automobiles ❑ All Owned Automobiles ❑ Non -owned Automobiles ❑ Hired Automobiles ❑ Scheduled Automobiles ❑ Garage Coverage ❑ Truckers Coverage ❑ Motor Carrier Act ❑ Bus Regulatory Reform Act ❑ Public Livery Coverage 0 12. A ❑ deductible or ❑ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable o per claim or ❑ per occurrence (check one). 13. This is an ❑ occurrence or ❑ claims made policy (check one). 14. This endorsement is effective on Policy Number at 12:01 a.m. and forms a part of 1, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed Telephone No.: (_) 20 Signature of Authorized Representative (Original signature only, no facsimile signature or initiated signature accepted) EXHIBIT E ACKNOWLEDGMENT OF PENAL AND CIVIL PENALTIES CONCERNING CONTRACTOR LICENSING LAWS STATEMENT ACKNOWLEDGING PENAL AND CIVIL PENALTIES CONCERNING THE CONTRACTORS' LICENSING LAWS [Business & Professions Code § 7028.15] [Public Contract Code § 20103.5] I, the undersigned, certify that I am aware of the following provisions of California law and that I, or the entity on whose behalf this certification is given, hold a currently valid California contractor's license as set forth below (required at time of award): Business & Professions Code § 7028.15: (a) It is a misdemeanor for any person to submit a bid to a public agency in order to engage in the business or act in the capacity of a contractor within this state without having a license therefore, except in any of the following cases: (1) The person is particularly exempted from this chapter. (2) The bid is submitted on a state project governed by Section 10164 of the Public Contract Code or on any local agency project governed by Section 20104 [now § 20103.5] of the Public Contract Code. (b) If a person has been previously convicted of the offense described in this section, the court shall impose a fine of 20 percent of the price of the contract under which the unlicensed person performed contracting work, or four thousand five hundred dollars ($4,500), whichever is greater, or imprisonment in the county jail for not less than 10 days nor more than six months, or both. In the event the person performing the contracting work has agreed to furnish materials and labor on an hourly basis, "the price of the contract" for the purposes of this subdivision means the aggregate sum of the cost of materials and labor furnished and the cost of completing the work to be performed. (c) This section shall not apply to a joint venture license, as required by Section 7029.1. However, at the time of making a bid as a joint venture, each person submitting the bid shall be subject to this section with respect to his or her individual licensure. (d) This section shall not affect the right or ability of a licensed architect, land surveyor, or registered professional engineer to form joint ventures with licensed contractors to render services within the scope of their respective practices. (e) Unless one of the foregoing exceptions applies, a bid submitted to a public agency by a contractor who is not licensed in accordance with this chapter shall be considered non-responsive and shall be rejected by the public agency. Unless one of the foregoing exceptions applies, a local public agency shall, before awarding a contract or issuing a purchase order, verify that the contractor was properly licensed when the contractor submitted the bid. Notwithstanding any other provision of law, unless one of the foregoing exceptions applies, the registrar may issue a citation to any public officer or employee of a public entity who knowingly awards a contract or issues a purchase order to a contractor who is not licensed pursuant to this chapter. The amount of civil penalties, appeal, and finality of such citations shall be subject to Sections 7028.7 to 7028.13, inclusive. Any contract awarded to, or any purchase order issued to, a contractor who is not licensed pursuant to this chapter is void. (f) Any compliance or noncompliance with subdivision (e) of this section, as added by Chapter 863 of the Statutes of 1588, shall not invalidate any contract or bid awarded by a public agency during which time that subdivision was in effect. (g) A public employee or officer shall not be subject to a citation pursuant to this section if the public employee, officer, or employing agency made an inquiry to the board for the purposes of verifying the license status of any person or contractor and the board failed to respond to the inquiry within three business days. For purposes of this section, a telephone response by the board shall be deemed sufficient. Public Contract Code § 20103.5: In all contracts subject to this part where federal funds are involved, no bid submitted shall be invalidated by the failure of the bidder to be licensed in accordance with the laws of this state. However, at the time the contract is awarded, the contractor shall be properly licensed in accordance with the laws of this state. The first payment for work or material under any contract shall not be made unless and until the Registrar of Contractors verifies to the agency that the records of the Contractors' State License Board indicate that the contractor was properly licensed at the time the contract was awarded. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by law, including, but not limited to, any appropriate disciplinary action by the Contractors' State License Board. The agency shall include a statement to that effect in the standard form of pre -qualification questionnaire and financial statement. Failure of the Bidder to obtain proper and adequate licensing for an award of a contract shall constitute a failure to execute the Contract and shall result in the forfeiture of the security of the Bidder, License No.: 763743 Date: 04/05/2021 Class:.. B - General Expiration Date: 03/31/2022 EXHIBIT F LABOR LAW REQUIREMENTS AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS [Labor Code §§ 1720, 1773.8, 1775, 1776, 1777.5, 1813, 1860, 1861, 3700] The undersigned Contractor certifies that it is aware of and hereby agrees to fully comply with the Following provisions of California law: 1. Contractor acknowledges that this Contract is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency ("Agency") and agrees to be bound by all the provisions thereof as though set forth in full herein. 2. Contractor agrees to comply with the provisions of California Labor Code Section 1773.8 which requires the payment of travel and subsistence payments to each worker needed to execute the Work to the extent required by law. 3. Contractor agrees to comply with the provisions of California Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the Agency, forfeit not more than fifty dollars ($50) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under the Contract by Contractor or by any subcontractor. 4. Contractor agrees to comply with the provisions of California Labor Code Section 1776 which require Contractor and each subcontractor to (1) keep accurate payroll records, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the Agency of the location of the records. The Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors. 5. Contractor agrees to comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors. 6. Contractor agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the Agency, forfeit twenty-five dollars ($25) for each worker employed in the execution of the Contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code. 7. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows: "l am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract." , is Date 04/05/2021 Signature EXHIBIT G INDEMNIFICATION AND HOLD HARMLESS AGREEMENT INDEMNIFICATION AND HOLD HARMLESS AGREEMENT AND WAIVER OF SUBROGATION AND CONTRIBUTION OFFICIAL TITLE OF PROJECT: POLICE DEPARTMENT OUTSIDE LOCKER REPLACEMENT PROJECT (PROJECT CIP NO. BG2103) Indemnitor(s) (list all names): Vincor Construction, Inc. To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and expense, to defend, protect, indemnify, and hold harmless the City of Seal Beach and its elected officials, officers, attorneys, agents, employees, volunteers, successors, and assigns (collectively "Indemnitees") from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith (collectively "Liabilities"), arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act, failure to act, error, or omission of Indemnitor or any of its officers, agents, servants, employees, subcontractors, materialmen, suppliers or their officers, agents, servants or employees, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to the above -referenced contract, agreement, license, or permit (the "Contract") or the performance or failure to perform any term, provision, covenant, or condition of the Contract, including this indemnity provision. This indemnity provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence. This indemnity provision shall survive the termination of the Contract and is in addition to any other rights or remedies which Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against an Indemnitee shall be conclusive in favor of the Indemnitee's right to recover under this indemnity provision. Indemnitor shall pay Indemnitees for any attorney's fees and costs incurred in enforcing this indemnification provision. Notwithstanding the foregoing, nothing in this instrument shall be construed to encompass (a) Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying Contract is subject to Civil Code § 2782(a) or (b) the contracting public agency's active negligence to the limited extent that the underlying Contract is subject to Civil Code § 2782(b). This indemnity is effective without reference to the existence or applicability of any insurance coverage which may have been required under the Contract or any additional insured endorsements which may extend to Indemnitees. Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligence by the Indemnitees. In the event there is more than one person or entity named in the Contract as an Indemnitor, then all obligations, liabilities, covenants and conditions under this instrument shall be joint and several. "Indemnitor" Name Vincent Cortes Name: Michele Cortes By: President Its By: CFO Its EXHIBIT H STANDARD SPECIFICATIONS AND REFERENCED DOCUMENTS Standard Specifications for Public Works Construction ("Greenbook") 2. Construction Specifications Institute ("CSI) EXHIBIT I NON -COLLUSION DECLARATION NON -COLLUSION DECLARATION FORM [PUBLIC CONTRACT CODE SECTION 71061 The undersigned declares: I am the President of Vincor Construction. Inc., the party making the foregoing Bid. The Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The Bid is genuine and not collusive or sham. The Bidder has not directly or indirectly induced or solicited any other Bidder to put in a false or sham Bid. The Bidder has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone else to put in a sham Bid, or to refrain from bidding. The Bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the Bid price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost element of the Bid price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, directly or indirectly, submitted his or her Bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, Bid depository, or to any member or agent thereof, to effectuate a collusive or sham Bid, and has not paid, and will not pay, any Person or entity for such purpose. Any person executing this declaration on behalf of a Bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the Bidder. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on 04/05/2021 [date], at Brea [city], California [state]. Project Name: POLICE DEPARTMENT OUTSIDE LOCKER REPLACEMENT PROJECT (CIP NO. BG2103) Legal Business Name of Bidder Vincor Construction, Inc. Business Address 2651 Saturn Street. Brea. CA 92821 Business Tel. No Signature: Printed Name: Vincent Cartes, President Date: 04/05/2021 Signature: Printed Name: Michele Cartes CFO Date: 04/05/2021 This form must be notarized. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1389 S r f , the Ides sur,,, cf SG^wG r� riGt2r4 DUI]iiG or other officer COrTipietknC� �'1is Ge�ItiCate Ver ii}e o �v �. document to whtic~ .Ns ceranate is attached. and net the truthru!ness. accuracy. or State of Calitor^ia County O? �� 1 before me. 2: ?nsBrT 'Jame ar - _ ote `E 'ol ic8 Da -e • _ persc :a! y appeared 'vame�'-Ci Sigrcr;_or who proved to me on the basis of satisfactory evidence to be :he person,; VJnose r aTAs,' are subscribed to the within instrument and acknowledged to me that(53�she/they executed the same i ,,'her/their authorized capacity(X'), and that by(SL'her/their signaturs(;5) or the instrurnen- the persor4 or the entity upon 'oehaif of which the person{( acted, executed the instrumerf-. I certify under PENALTY OF PERJURY :s~ider Zhe ,avis of the State cf California -hat :rye foregoing paragrapr is true and correct. SHIRLEY ROSE KANG Notary Public - California orange County Commission M 2265344 amycomm . Expires NO" 27, 2022 WITNESS my hand and otic.a3 sea: - Signature Signature of ivoi� PL)D11C Place Notary Sea! Above OPTIONAL Though this section is optional, completing this information can deter afteraiion of -Mea cocumenr or fraudulent reattachment of this ;arm to an unintended docJmenr. Description of Attached Document nocument Date: Title or Type of Document: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signers Name: Corporate Officer — Title(s): Partner — Limited —_ General Individual Attorney in Fact — Trustee Guardian or Conservator Other: Signer is Representing: Signers Name: -- -- Corporate Officer —-'tie(s): _ ---- -_ Partner — — Limited Ger:erai Individual T. Attorney in Fact — Trustee Guardian or Gonse; a -or Other. Signer is Representing: —.-- �, r �e�c c ct —cam 4 vc 002014 National Notary Association • www.NationalNotary_org • {-800-US NOTARY 800-870-5827` !'ern., u�0' CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 11&9 ,A :-;Glary oubiic o' ctt er officer cor`i7Rleting tots oertificate verifies only irie idei,-tV 7GG�! la t t^ vinic, t its cei Lificate is attached. and not the tri~ hfu ness accu-ai, yr uli-`i' State of Caiifomia- Countv of before ire. ;dare Here insert Name an, , � i perscnaily appeared iv�amzy�T of Slcner{3? vvho crowed t0 me on the basis of satisfactory evidence to be the persorX 'whose ram� tSl-r� subscribed to the within, instrument and acknowleci ed to me that he,oithey executed the same hi /their authorized capacity(K, and that by his e /their signature, * or the InstrFument V, persor� or e entity upon behalf of which the personXacteo. executed the instrumen —SHIRLEY ROSE KANG Notary Public - California Orange County Commission # 2285394 QMy Comm. Explreii Noy 27.2022 I certifv under PENALTY OF PERjUR. " Hyde,. t e Laws of the State of California :'?at the foreg0i-- c paragrapi- 6s true and correct. ,NfTiN =SS ray hard and ofic!a seal. Signature Signature f '4o Pirc Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can, deter alteration of t,�e ocurrert or frauduient reattachment of this form, to an unintended documer i. Descriiption of Attached Document Title or Type of Document: Number of Pages: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Ciaimoad by Signer(s) Signer's Name: - Comorate Officer - Title(s): Partner - �--._ Limited - General Individual - Attorney in Fact - Trustee Guardian or Conservator T"- f?I•fior_ Signer Is Representing-. _....------- -- - - Signer's Marne: - -- Corporate Officer - Itie(s): - Partner - - Limited -.. Gererai -_ Individual :W. Attorney i . 18Ci Trustee Guardian or Conservator - Other: -.— �- Signer Is Representing: @201A National notaryAssocia;.ion • www.NationalNotary.org - 1 -800 -US NC i AR` i, • 800-8 r o 682 _E SWL EXHIBIT J CONTRACTOR'S INDUSTRIAL SAFETY RECORD CONTRACTOR'S INDUSTRIAL SAFETY RECORD Bidder's Name Vincor Construction Inc. The information required for these items is the same as required for columns 3 to 6, Code 10, Occupational Injuries, Summary --Occupational Injuries and Illnesses, OSHA No. 102. Legal Business Name of Bidder Vincor Construction Inc. Business Address: 2651 Saturn Street, Brea, CA 92821 Business Tel. No.: 714.528.2900 State Contractor's License No. and Classification: #763743• B - General Title Michele Cortes CFO Current Year of 2020 2019 2018 2017 2016 Total Record Number of contracts 49 210 98 124 131 53 665 Total dollar amount of contracts (in thousands of $8,428 $44,729 $39,990 $28,415 $22,340 $15,405 $86,717 dollars) Number of fatalities 0 0 0 0 0 0 0 Number of lost workday cases 0 0 0 0 0 0 0 Number of lost workday cases involving permanent transfer 0 0 0 0 0 0 0 to another job or termination of employment The information required for these items is the same as required for columns 3 to 6, Code 10, Occupational Injuries, Summary --Occupational Injuries and Illnesses, OSHA No. 102. Legal Business Name of Bidder Vincor Construction Inc. Business Address: 2651 Saturn Street, Brea, CA 92821 Business Tel. No.: 714.528.2900 State Contractor's License No. and Classification: #763743• B - General Title Michele Cortes CFO EXHIBIT K LIST OF SUBCONTRACTORS DESIGNATION OF SUBCONTRACTORS [Public Contract Code Section 4104] List all Subcontractors who will perform Work or labor or render service to the Contractor in or about the construction of the Work or improvement, or a Subcontractor licensed by the State of California who, under subcontract to the Contractor, specially fabricates and installs a portion of the Work or improvement according to detailed drawings contained in the Plans and Specifications, in an amount in excess of one-half percent (0.5%) of the Contractor's total Bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half percent (0.5%) of the Contractor's total Bid or $10,000, whichever is greater. If all Subcontractors do not fit on this page, attach another page listing all information for all other Subcontractors. Name under which Subcontractor is Licensed and Registered CSLB License Number(s) and Class(es) DIR Contractor Registration Number Address and Phone Number Type of Work (e.g., Electrical) Percentage of Total Bid (e.g., 10%) Gatchouse MSI LLC DBA McMurray Stern #1041651 PW -LR -1000363952 15511 Carmenita Road, Santa Fe Springs, CA 90670 Lockers 70% The percentage of the total Bid shall represent the "portion of the work" for the purposes of Public Contract Code Section 4104(b). EXHIBIT L ACCEPTED BID GORDIAN@ Work Order Signature Document EZIQC Contract No.: CA-08-SL-B-B-030618-VCI FNew Work Order ❑ Modify an Existing Work Order Work Order Number.: 083467.00 Work Order Date: 03/26/2021 Work Order Title: Seat Beach - Police Station - Lockers Owner Name: CALIFORNIA- City of Seal Beach Contractor Name: Vincor Construction Inc. Contact: Iris Lee Contact: John Kang Phone: 552-431-2527 Phone: (714) 528-2900 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-B-B-030618-VCI. Brief Work Order Description: Replace and Add Lockers Time of Performance Estimated Start Date: Estimated Completion Date: Liquidated Damages Will apply: 191 Will nota I : Work Order Firm Fixed Price: $49,650.85 Owner Purchase Order Number: Approvals CALIFORNIA - City of Seal Beach Work Order Signature Document Date ctor Date Page 1 of 1 3/261202/ Sou rcewel7in Detailed Scope of Work To: John Kang Vincor Construction, Inc. 2651 Saturn Street Brea, CA 92821 (714) 528-2900 Date Printed: March 26, 2021 Work Order Number: 083467.00 Work Order Title: Seal Beach - Police Station - Lockers From: Iris Lee CALIFORNIA- City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 562-431-2527 Brief Scope: Replace and Add Lockers El Preliminary 1:1 Revised M Final 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. 1. Provide regulated work area utilizing caution tape, delineators and safety temp fence to demarcate the construction site. 2. Provide signage, dust control measures, equipment and materials required to complete project. 3. Removal and haul away of existing lockers to be done by others. 4. Furnish and install (18) new 16 -gauge exterior grade, powder coated, three-tier war bag lockers at 24" x 24" x 72"H which provides a total of (54), 24"H locker tiers/openings. New lockers to include continuous sloping hoods, end panels, two wall hooks and one hasp lock per tier with perforated doors. 5. New lockers are to be installed on the existing concrete bases. Existing base to remain protect in place and excludes any re -work and/or extension to existing base. Clarifications: • Any additional work due to unforeseen conditions will be treated as a supplemental to the work order. • Excludes any design, engineering, permit and plan check related fees. • Excludes any ACM/Lead testing and/or abatement. • Excludes demo and removal of existing lockers and any electrical work for locker receptacle outlets. • Excludes any new and/or upgrades to existing electrical panels. • Existing water line and conduits to remain protect in place. • Prevailing wage rates apply. Subject to the terms and conditions of JOC Contract CA-08SL-B-B-0306118-VCI. Scope of Work Page # of 2 3!26!2021 Detailed Scope of Work Continues.. Work Order Number: 083467.00 Work Order Title: Seal Beach - Police Station - Lockers /S7/ -Io acC.Qf Date CALIFORNIA - City of Seal Beach Date Scope of Work ?age 2 of 2 3/2612029 Contractor's Price Proposal - Summary Date: March 26, 2021 Re: IQC Master Contract #: Work Order #: Owner PO #: Title: Contractor: CA -08 -SL -B -B -030618 -VC I 083467.00 Seal Beach - Police Station - Lockers Vincor Construction Inc. Proposal Value: $49,650.65 Section - 01 $3,276.90 Section - 03 $559.66 Section - 05 $757.88 Section - 08 $4,811.95 Section - 10 $40,244.46 Proposal Total $49,650.85 Thisl total represents the correct total for the proposal. Any discrepancy between line totals, sub -totals and the proposal total is due to rounding. Contractor's Price Proposal - Summary Page 1 of 1 3/26/2021 Contractor's Price Proposal - Detail Date- March 26, 2021 Re: IQC Master Contract #: CA-08-SL-B-B-030618-VCI Work Order #: 083467.00 Owner PO #: Title: Seal Beach - Police Station - Lockers Contractor: Vincor Construction Inc. Proposal Value: $49,650.85 Sect. item Mod. UOM Description Line Total Labor Equip. Material (Excludes) Section - 01 1 01 22 16 00 0002 EA Reimbursable FeasReimbursable Fees will be paid to the contractor for eligible $1,068.80 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 ReimbursaNe 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. Quantity Unit Price Factor Total Installation 97164 x 1.00 x 1.1000 1,068.80 BOND FEE - ($48,582,05 X 2% = $971.64) 2 01 22 23 00 1000 DAY 5,000 LB Straight Mast, Industrial Warehouse Forklift With Full -Time Operator $1,011.05 Quantity Unit Price Factor Total Installation 100 x 936.50 x 1.0796 - 1,011.05 MOVE AND SET LOCKERS 3 01 22 23 00 1329 DAY 1-112 Ton Capacity, 8' To 10' Bed, 4 x 2 Flat Bed Truck With Full -Time Truck $645.29 Driver Quantity Unit Price Factor Total Installation 1.00 x 782.97 x 1.0796 - 845.29 LOCKERS FREIGHT/DELIVERY 4 01 56 26 00 0182 LF 48" High With Posts At 8' On Center, Plastic Mesh Temporary Safety Fence $134.41 Quantity Unit Price Factor Total Installation 50.00 x 2.49 x 1.0796 134.41 TEMP SAFETY FENCE AROUND WORK AREA 5 01 71 13 00 0002 EA First 25 Miles, Equipment Delivery, Pickup, Mobilization And Demobilization $217.35 Using A Rollback Flatbed Trucklncludes delivery of equipment, off loading on site, rigging, dismantling, loading and transporting away. For equipment such as trenchers, skid -steer loaders (bobcats), industrial warehouse forkhfls, sweepers, scissor platform lifts, telescoping and articulating boom manlifts with up to 40' boom lengths, etc. Quantity Unit Price Factor Total installation 100 x 201.32 x 10796 = 217.35 MOBIDEMOB - FORKLIFT Subtotal for Section - 01 $3,276.90 Section - 03 6 03 01 30 71 0010 SF 118" To 114", Epoxy Cementitious Mortar Patch, Decks And Floors $559.66 Quantity Unit Price Factor Total Installation 36.00 x 14.40 x 10796 = 559.66 MINOR MISC PATCH WORK FROM EXISTING LOCKER BOLTS REMOVAL AT EXISTING BASE-(2SF X 18 LOCS = 36) Subtotal for Section - 03 $559.66 Contractor's Price Proposal - Detail Page 1 of 3 3/26/2021 Contractor's Price Proposal - Detail Continues.. Work Order Number: 083467,00 Work Order Title: Seal Beach - Police Station - Lockers Section - 05 7 05 05 19 00 0010 EA 3/8" Diameter x 3" Length, Zinc Plated Steel, Wedge Anchor Expansion Bolt $837.17 Quantity Unit Price Factor Total Installation 72.00 x 10.77 x 1.0796 897.17 LOCKER ANCHORS - (4EA PER X 18EA = 72) 8 05 05 19 00 0010 0190 MOD For >50 To 100, Deduct -$79.29 Quantity Unit Price Factor Total Installation 72.00 x -1.02 x 1.0796 -79.29 Subtotal for Section - 05 $757.88 Section - 08 9 08 71 23 00 0668 EA 6", Zinc Plated Finish, Steel High Security Hasp Assembly $4,811.95 Quantity Unit Price Factor Total Installation 54.00 x 82.54 x 1.0796 - 4,811.95 LOCKER DOOR HASP ASSEMBLY Subtotal for Section - 08 $4,811.95 Section - 10 10 10 51 13 00 0132 EA 24" x 24" x 76" Open Front, All -Welded Steel Stadium Locker (Penco $37,022.98 6WFD33)lncludes shelf, foot Locker, security box and 4" high integral base. Quantity Unit Price Factor Total Installation 54.00 x 635.06 x 1.0796 - 37,022.98 REMOVE/REPLACE WAR BAG LOCKERS 11 10 51 13 00 0143 LF 24" Deep, 16 Gauge Continuous Slope Top $1,037.71 Quantity Unit Price Factor Total Installation 36.00 x 26.70 x 1.0796 1,037.71 LOCKERS SLOPE TOP 12 10 51 13 00 0171 EA 24" Deep, Individual Slope Top End Closures $84.51 Quantity Unit Price Factor Total Installation 4.00 x 19.57 x 1.0796 84.51 LOCKERS SLOPE TOP END CLOSURES 13 10 51 13 00 0177 EA 24" Wide, 6" High Closed Front Base $302.76 Quantity Unit Price Factor Total Installation 18.00 x 15.58 x 1.0796 = 302.76 LOCKER BASE 14 10 51 13 00 0214 EA 21" Deep x 72" High, 16 Gauge End Panel $278.41 Quantity Unit Price Factor Total Installation 4.00 x 64.47 x 1.0796 - 278.41 LOCKERS END PANELS 15 10 51 13 00 0227 EA 24" Wide Coat Rod $1,518.09 Quantity Unit Price Factor Total Installation 108.00 x 13.02 x 1.0796 = 1,518.09 LOCKERS WALL HOOKS - (2EA PER X 54EA = 108) Subtotal for Section -10 $40,244.46 Contractor's Price Proposal - Detail Page 2 of 3 3/2612021 Contractor's Price Proposal - Detail Continues.. Work Order Number: 083467.00 Work Order Title: Seal Beach - Police Station - Lockers Proposal Total $49,650.86 This total represents the correct total for the proposal. Any discrepancy between line totals, sub -totals and the proposal total is due to rounding. Contractor's Price Proposal - Detail Page 3 of 3 3126/2021 GiGPDIAN@ Subcontractor Listing Date: March 26, 2021 Re: IQC Master Contract #: GA-o&SL-B-B-030618-VCI Work Order #: 083467.00 Owner PO #: Title: Seal Beach - Police Station - Lockers Contractor: Vincor Construction Inc. Proposal Value: $49,650.65 Name of Contraetar Dudes No Subcontractors have been selected for this Work Order $0.00 n . ... . ... .. ..... ... ..................... ... . ............. ........ . .............................. ...... .... .... ... . . Subcontractor Listing Page 1 of 1 3/26/2021 EXHIBIT M SOURCEWELL INDEFINITE QUANTITY CONSTRUCTION AGREEMENT NATIONAL JOINT POWERS ALLIANCE® Book 1 — Project Information, Instructions to Bidders and Execution Documents INDEFINITE QUANTITY CONSTRUCTION AGREEMENT IFB NUMBER: CA08SLBB-030618 GEOGRAPHIC AREA State of California - Southland This Agreement dated April 04, 2018 , by and between the National Joint Powers Alliance, hereinafter referred to as NJPA and Vincor Construction, Inc. at the following address 2651 Saturn Street, Brea, CA 92821 hereinafter referred to as the CONTRACTOR. WITNESSETH: NJPA and CONTRACTOR for the consideration hereafter agree as follows: ARTICLE 1. CONTRACT DOCUMENTS A. Contract Documents: This Agreement; the IFB Documents; (Book 1 - Project Information, Instructions to Bidders and Execution Documents; Book 2 - IQCC Standard Terms and Conditions and General Conditions; Book 3 - Construction Task Catalog (CTC), Book 4 - Technical Specifications) and Addenda thereto, all payment and performance bonds (if any), material and workmanship bonds (if any); wage rate decisions and certified payroll records (if any); Notice of Award; all modifications issued thereto, including Supplemental Purchase Orders/Change Orders and written interpretations and all Purchase Orders and accompanying documents (Requests for Proposals, Detailed Scopes of Work, Purchase Order Proposals, etc.) issued hereunder. B. The terms and conditions of a Purchase Order issued by an NJPA Member in connection with any Project, including supplemental technical specifications referenced therein, shall govern. C. The Contractor shall, within two (2) business days of receipt of a Purchase Order from an NJPA Member, provide notification to NJPA or their designated representative of each Purchase Order by forwarding a copy of the Purchase Order via email to PO a@EZIQC.com or via facsimile to (864) 233-9100, D. The Contractor shall, within two (2) business days of sending an Invoice to an NJPA Member, provide notification to NJPA or their designated representative of each Invoice by forwarding a copy of the Invoice via email to Invoice LDEZIQC.corn or via facsimile to (864) 233-9100. January 2018 Section Three — Bid Forms 33 NATIONAL ,POINT POWERS ALLIANCE® Book 1 — Project Information, Instructions to Bidders and Execution Documents ARTICLE 2. SCOPE OF WORK A. The Contractor shall provide the services required to develop each Purchase Order in accordance with the procedures for developing Purchase Orders set forth in the IQCC Standard Terms and Conditions and the Contract Documents. B. Each Purchase Order developed in accordance with this Agreement will be issued by an individual NJPA Member. The Purchase Order will require the Contractor to perform the Detailed Scope of Work within the Purchase Order Completion Time for the Purchase Order Price. C. It is anticipated that the Contractor will perform Work primarily in the Geographic Area set forth above. However, the parties may agree that the Contractor can perform Work in a different Geographic Area at its current Adjustment Factors. ARTICLE 3. THE AGREEMENT PRICE A. This Agreement is an indefinite -quantity contract for construction work and services. The Estimated Annual Value of this Agreement is $ 4,700,000. This is only an estimate and may increase or decrease at the discretion of NJPA. B. The Contractor shall perform any or all Tasks in the Construction Task Catalog for the Unit Price appearing therein multiplied by the following Adjustment Factors: TO BE ENTERED BY NJPA: a. Normal Working Hours Prevailing Waqe: Work performed from 7:00am until 4:OOpm Monday to Friday, except holidays. Contractor shall perform Tasks during Normal Working Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 1.0270 (Specify to four (4) decimal places) Other Than Normal Working Hours Prevailing Wage: Work performed from 4:00pm to 7:00am Monday to Friday, and any time Saturday, Sunday and Holidays. Contractor shall perform Tasks during Other Than Normal Working Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 1.0271 (Specify to four (4) decimal places) Normal Working Hours Non Prevailing Wage: Work performed from 7:00am until 4:00pm Monday to Friday, except holidays. Contractor shall perform Tasks during Normal Working Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 0.5405 (Specify to four (4) decimal places) d. Other Than Normal Working Hours Non Prevailing Wage: Work performed from 4:00pm to 7:00am Monday to Friday, and any time Saturday, Sunday and Holidays. Contractor shall perform Tasks during Other Than Normal Working Hours for the Unit Price set forth in the CTC multiplied by the Adjustment Factor of: 0.5406 (Specify to four (4) decimal places) January 2018 Section Three — Bid Forms 34 NATIONAL JOINT POWERS ALLIANCE® Book 1 — Project information, Instructions to Bidders and Execution Documents e. Non Pre -priced Adjustment Factor: To be applied to Work deemed not to be included in the CTC but within the general scope of the work.- 1. ork:,_ 1351 (Specify to four (4) decimal places) ARTICLE 4. TERM OF THE AGREEMENT A. This Agreement has an initial term of one (1) year and a bilateral option provision for three (3) additional terms. The total term of the Agreement cannot exceed four (4) years. One additional one-year renewal -extension may be offered by NJPA to Contractor beyond the original three-year term if NJPA deems such action to be in the best interests of NJPA and its Members. The Contractor may withdraw from the Agreement on each anniversary of the award, provided that the Contractor gives 60 Days written notice of its intent to withdraw. NJPA may, for any reason, terminate this Agreement at any time. B. All Purchase Orders issued during a term of this Agreement shall be valid and in effect notwithstanding that the Detailed Scope of Work may be performed, payments may be made, and the guarantee period may continue, after such term has expired. All terms and conditions of the Agreement apply to each Purchase Order. ARTICLE 5. SOFTWARE LICENSING A. NJPA selected The Gordian Group's (Gordian) software, data and services (IQCC System) for their IQCC program. The system includes Gordian's proprietary ezIQC, eGordian and Bid Safe IQCC applications (IQCC Applications) and construction cost data (Construction Task Catalog), which shall be used by the Contractor to prepare and submit Price Proposals, subcontractor lists, and other requirements specified by NJPA and NJPA Members. The Contractor's use, in whole or in part, of Gordian's IQCC Applications and Construction Task Catalog and other proprietary materials provided by Gordian for any purpose other than to execute work under this Agreement for NJPA and NJPA Members is strictly prohibited unless otherwise stated in writing by Gordian. The Contractor hereby agrees to abide by the terms of the following IQCC System License: ARTICLE 6. IQCC SYSTEM LICENSE A. Gordian hereby grants to the Contractor, and the Contractor hereby accepts from Gordian for the term of this Agreement or Gordian's contract with NJPA, whichever is shorter, a non-exclusive right, privilege, and license to Gordian's proprietary IQCC System and related proprietary materials (collectively referred to as "Proprietary Information") to be used for the sole purpose of executing Contractor's responsibilities to NJPA and NJPA Members under this Agreement ("Limited Purpose"). The Contractor hereby agrees that Proprietary Information shall include, but is not limited to, Gordian's IQCC Applications and support documentation, Construction Task Catalog, training materials, marketing materials and any other proprietary materials provided to Contractor by Gordian. In the event this Agreement expires or terminates as provided herein, or the Gordian's contract with NJPA expires or terminates, this IQCC System License shall terminate and the Contractor shall return all Proprietary Information in its possession to Gordian, B. Contractor acknowledges that Gordian shall retain exclusive ownership of all proprietary rights to the Proprietary Information, including all U.S. and international intellectual property and other rights such as patents, trademarks, copyrights and trade secrets. January 2018 Section Three -- Bid Forms 35 NATIONAL JOINT POWERS ALLIANCE@ Book 1 — Project Information, Instructions to Bidders and Execution Documents Contractor shall have no right or interest in any portion of the Proprietary Information except the right to use the Proprietary Information for the Limited Purpose set forth herein. Except in furtherance of the Limited Purpose, Contractor shall not distribute, disclose, copy, reproduce, display, publish, transmit, assign, sublicense, transfer, provide access to, use or sell, directly or indirectly (including in electronic form), any portion of the Proprietary Information, C. Contractor acknowledges and agrees to respect the copyrights, trademarks, trade secrets, and other proprietary rights of Gordian in the Proprietary Information during and after the term of this Agreement, and shall at all times maintain complete confidentiality with regard to the Proprietary Information provided to Contractor, subject to federal, state and local laws related to public disclosure. Contractor further acknowledges that a breach of any of the terms of this Agreement by Contractor will result in irreparable harm to Gordian for which monetary damages would be an inadequate remedy, and Gordian shall be entitled to injunctive relief (without the necessity of posting a bond) as well as all other monetary remedies available at law or in equity. In the event that it becomes necessary for either party to this IQCC System License to enforce the provisions of this Agreement or to obtain redress for the breach or violation of any of its provisions, whether by litigation, arbitration or other proceedings, the prevailing party shall be entitled to recover from the other party all costs and expenses associated with such proceedings, including reasonable attorney's fees. D. In the event of a conflict in terms and conditions between this IQCC System License and any other terms and conditions of this Agreement or any Purchase Order, Order or similar purchasing document (Purchase Order) issued by NJPA or an NJPA Member, this IQCC System License shall take precedence. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. By: National Joint Powers Alliance AuthbrizM Signatur Jeremy Schwartz -Director of Qperations & Procurement/C€0 Print Name - - Contractor V�� Authorized Signature Vincent Cortes Print Name Contract Number: CA -08 -SL -B -B -030618 -VC] (assigned by NJPA) January 2018 Section Three — Bid Forms 36 DocuSign Envelope ID: 83A1941B-ADF24A08-6088-09MID62DBDA ANNUAL RENEWAL AND MODIFICATION OF AGREEMENT made by and between Vincor Construction Inc. 2651 Saturn Street Brea, CA 92821 and Sourcewell 202 12th Street NE PO Box 219 Staples, MN 56479 Phone: (218) 894-1930 or (888) 894-1930 Whereas: "Vendor" and "Sourcewell" have entered into 1) an "Acceptance of Bid and IFB CA-08-SL-B-B-030618-VCI" with an effective date of April 4, 2018, a maturity date of April 3, 2022, and which are subject to annual renewals at the option of both parties. MODIFICATION: SECOND RENEWAL OPTION PERIOD Pursuant to the agreement between the parties, the following are the Adjustment Factors for the next option period: Base Year Base Average 10761.4416 Option Year Date Index 1 March 2017 10277.62 2 April 2017 10678.15 3 May 2017 10692.17 4 June 2017 10707.81 5 July 2017 10789.26 6 August 2017 10841.56 7 September 2017 10822.82 8 October 2017 10817.1 1 9 November 2017 10870.06 10 December 2017 10873.56 11 January 2018 10878.01 12 February 2018 10889.17 Base Average 10761.4416 Option Year Option Average 11312.1183 Price Adjustment: Second Year Index Average = 11312.1183 _ 1.0512 Base Year Index Average 10761.4416 Date Index 1 March 2019 11227.88 2 April 2019 11228.07 3 May 2019 11229.99 4 _ June 2019 11268.48 5 July 2019 11291.80 6 August 2019 11311.06 7 September 2019 11311.24 8 October 2019 11326.12 9 November 2019 11380.83 10 December 2019 1 1381.53 11 January 2020 11392.41 12 February 2020 11396.01 Option Average 11312.1183 Price Adjustment: Second Year Index Average = 11312.1183 _ 1.0512 Base Year Index Average 10761.4416 DocuSign Envelope ID: 83A19418-ADF2-4AO8-BOSS-09A51D62DBDA Now therefore: "Vendor" and "Sourcewell" hereby desire and agree to extend and renew the above defined contracts and with the above identified modifications for the period of April 4, 2020 through April 3, 2021. Sourcewell r__%F� BY s'� , Its: Director of Cooperative Contracts and Procurement/CPO Name printed or typed: Jeremy Schwartz Date: 2/18/2020 1 4:27 PM CST Irncor Construction Inc. - #CA-08-SL-B-B-030618-VCI C�� BY' Nks =: M-7-c:=_HEG. , Its: President Name printed or typed: Vincent Cortes Date: 2/18/2020 1 12:12 PM PST If you do not want to extend contract, please sign below and return this agreement. Discontinue: We desire to discontinue the contract. Signature: , Date: AWARD MULTIPLIER x PRICE ADJUSTMENT OPTION MULTIPLIER # CA-08-5L-B-B-030618-VCI ....... Non Pre -Priced Adjustment Factor 1.1351 1.0000 1.1351 Normal Working Hours Prevailing Wage 1.0270 1.0512 1.0796 Nonnal Working Hours Non- Prevailing Wage 0.5405 1.0512 0.5682 Other Than Normal Working Hours Prevailing Wage 1.0271 1.0512 10797 Other Than Nonnal Working Hours Non -Prevailing Wage 0.5406 1.0512 0.5683 Now therefore: "Vendor" and "Sourcewell" hereby desire and agree to extend and renew the above defined contracts and with the above identified modifications for the period of April 4, 2020 through April 3, 2021. Sourcewell r__%F� BY s'� , Its: Director of Cooperative Contracts and Procurement/CPO Name printed or typed: Jeremy Schwartz Date: 2/18/2020 1 4:27 PM CST Irncor Construction Inc. - #CA-08-SL-B-B-030618-VCI C�� BY' Nks =: M-7-c:=_HEG. , Its: President Name printed or typed: Vincent Cortes Date: 2/18/2020 1 12:12 PM PST If you do not want to extend contract, please sign below and return this agreement. Discontinue: We desire to discontinue the contract. Signature: , Date: i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Steve Myrter, P.E., Director of Public Works SUBJECT: Awarding and Authorizing Execution of a Public Works Agreement with Sialic Contractors Corporation dba Shawnan for FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103 SUMMARY OF REQUEST: That the City Council adopt Resolution 7138: 1. Approving plans, specifications, and contract documents for the FY 2020- 2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103; and, 2. Approving and awarding a public works agreement to Sialic Contractors Corporation dba Shawnan, in the amount of $505,882, and waive minor bid irregularities and reject all other bids; and, 3. Authorizing the City Manager to execute the public works agreement for the FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive) to Sialic Contractors Corporation dba Shawnan; and, 4. Authorizing the City Manager to approve additional work requests up to $50,000 and inspection services up to $20,000 in connection with the Project, in the cumulative not -to -exceed amount of $70,000; and, 5. Approving Budget Amendment BA 21-10-02 in the amount of $175,882 for the FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103. BACKGROUND AND ANALYSIS: The City's annual arterial street resurfacing project was budgeted in the FY 2020- 2021 Capital Improvement Program to improve roadway conditions within the City. The work will generally include grinding the existing pavement and installing an asphalt overlay to extend the roadways' serviceable life. Pursuant to the 2020 Agenda Item K Pavement Management Program, Marina Drive from 1st Street to Pacific Coast Highway, was selected. On March 30, 2021, the City Clerk's office received seven (7) bids with the following results: Rank Contractor Base Bid Alternate Bid Total Low Shawnan $ 476,452 $ 29,430 $ 505,882 2 All American Asphalt $ 491,429 $ 18,966 $ 510,395 3 Hardy & Harper, Inc. $ 529,000 $ 24,720 $ 553,720 4 Sequel Contractors, Inc. $ 569,339 $ 21,160 $ 590,499 5 Palp, Inc. $ 578,845 $ 27,640 $ 606,485 6 Onyx Paving Company $ 613,000 $ 31,000 $ 644,000 7 RJ Noble $ 628,890 $ 28,805 $ 657,695 The bid documents specified the "Total Base Bid" as the basis of award. As such, staff recommends deeming Sialic Contractors Corporation dba Shawnan (Shawnan), as the lowest responsive bidder at $476,452. The 4th Street concrete alley approach was identified in the draft ADA Transition Plan requiring improvements to comply with Americans with Disabilities Act (ADA). As such, an additive bid item for the replacement of the alley approach was included in the bid documents. Shawnan submitted a bid for the additional work in the amount of $29,430. Staff finds this alternate bid to be fair and reasonable, and recommends including the alternate bid in the overall contract. Based upon the references, qualifications, work experience, and cost, staff recommends deeming Shawnan as the lowest responsive bidder and awarding the FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive) construction contract to Shawnan for a total bid of $505,882. The project plans are available in the City Engineer's office. Staff further recommends authorizing the City Manager to approve additional work requests up to $50,000 and inspection services up to $20,000, in the cumulative not -to -exceed amount of $70,000. Construction is estimated to start in Spring 2021 and be completed within 30 working days following the Notice to Proceed. ENVIRONMENTAL IMPACT: This project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under section 15301 (c) of the CEQA Guidelines. Page 2 LEGAL ANALYSIS: The City Attorney has reviewed the agreement and approved the resolution as to form. FINANCIAL IMPACT: The FY 2020-2021 Capital Improvement Program budget allocated $400,000 towards FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103. Budget Amendment BA 21-10-02 in the amount of $175,882 using available SB -1 fund balance is recommended for approval to provide sufficient project funding. The table below presents the estimated breakdown of the Project cost: Description Amount Construction $ 505,882 Design $ 33,940 Contingency $ 50,000 Inspection/Testing $ 20,000 Total $ 575,882 Revised/ Adopted Proposed Description Account Budget Budget SB -1 Program 039-090-49605 $400,000 $ 575,882 - Capital CIP Project Project ST2103 Expenditures Budget Amendment $ 175,882 Upon completion of the construction contract, any unspent funds remaining from this project will be returned to the original funding source. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. MEASURE BB: This item is not applicable to Measure BB, the Seal Beach Neighborhood and Essential Services Protection Measure. Page 3 RECOMMENDATION: That the City Council adopt Resolution 7138: 1. Approving plans, specifications, and contract documents for the FY2020- 2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103; and, 2. Approving and awarding a public works agreement to Shawnan, in the amount of $505,882, and waive minor bid irregularities and reject all other bids; and, 3. Authorizing the City Manager to execute the public works agreement for the FY2020-2021 Arterial Street Resurfacing Project (Marina Drive) to Shawnan; and, 4. Authorizing the City Manager to approve additional work requests up to $50,000 and inspection services up to $20,000 in connection with the Project, in the cumulative not -to -exceed amount of $70,000; and, 5. Approving Budget Amendment BA 21-10-02 in the amount of $175,882 for the FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103. SUBMITTED BY: Steve Myrter Steve Myrter, P.E., Director of Public Works Prepared by: Denice Bailey, Assistant Engineer ATTACHMENTS: NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager A. Resolution 7138 B. Professional Services Agreement with Shawnan Page 4 RESOLUTION 7138 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AWARDING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC WORKS AGREEMENT WITH SIALIC CONTRACTORS CORPORTATION DBA SHAWNAN FOR FY 2020-2021 ARTERIAL STREET RESURFACING PROJECT (MARINA DRIVE), CIP ST2103 WHEREAS, on March 9, 2021, the City issued a solicitation for bids for the FY 2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP ST2103 ("Project"); and, WHEREAS, on March 30, 2021, the City Clerk's office received seven (7) bids in response to the solicitation for bids, and Sialic Contractors Corporation dba Shawnan (Shawnan) submitted the lowest responsible bid in the amount of $505,882; and, WHEREAS, Shawnan is a qualified firm to perform the Project. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves the plans and specifications for the Project. SECTION 2. Based on the recitals set forth above, the City Council hereby awards a public works agreement to Shawnan for the Project in the not -to - exceed amount of $505,882, waives minor bid irregularities, and rejects all other bids. SECTION 3. The City Council hereby authorizes and directs the City Manager to execute the public works agreement on behalf of the City. SECTION 4. The City Council hereby authorizes the City Manager to approve payments for additional work requests in connection with the Project in the cumulative not -to -exceed amount of $50,000. SECTION 5. The City Council hereby authorizes the City Manager to approve payments for inspection and testing in connection with the Project in the cumulative not -to -exceed amount of $20,000. SECTION 6. The City Council hereby approves Budget Amendment 21-10-02 allocating $175,882 for the Project as follows: Revised/ Adopted Proposed Budget Description Account Budget Budget Amendment SB -1 Program 039-090-49605 $400,000 $ 575,882 $ 175,882 - Capital CIP Project Project ST2103 Expenditures PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Joe Kalmick, Mayor 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 7138 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk PUBLIC WORKS AGREEMENT ARTERIAL STREET RESURFACING PROJECT (MARINA DRIVE) PROJECT CIP NO. ST2103 between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 N. - Sialic Sialic Contractors Corporation dba Shawnan 12240 Woodruff Avenue Downey, CA 90241 (562) 803-9977 THIS CONTRACT ("Contract") is made as of April 12, 2021, by and between the City of Seal Beach, a California charter city ("City"), and Sialic Contractors Corporation dba Shawnan, a California corporation, ("Contractor"). RFrITAI R A. WHEREAS, the City Council has approved the plans and specifications for the FY2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP No. ST2103 ("Project") with respect to design criteria; and B. WHEREAS, Contractor has submitted a Bid to City for the Project dated March 30, 2021 in the amount of $505,882 ("Bid" hereinafter). The Bid is attached hereto and contains, among other things, provisions defining the Project scope. NOW, THEREFORE, in consideration of performance by the parties of the mutual promises, covenants, and conditions herein contained, the parties hereto agree as follows: CONTRACT 1. Contractor's Services. 1.1 Scope and Level of Services. For and in consideration of the mutual promises set forth herein, and subject to the terms and conditions set forth in this Contract, Contractor shall perform and complete in good and workmanlike manner all work ("Work") required by this Contract and the documents listed in Subsection 1.2 for the Project. 1.2 Contract Documents. The "Contract Documents" that comprise the agreement between the City and the Contractor are the: Notice Inviting Sealed Bids, Instructions to Bidders, Accepted Bid Proposal Form, Non -Collusion Declaration, Bid Schedule(s), List of Subcontractors, Contractor's Industrial Safety Record, Contractor's Qualification Statement, Bid Security Forms for Check or Bond, Specifications, General and Special Provisions and documents referenced therein, all addenda as prepared prior to the date of Bid opening setting forth any modifications or interpretations of any of said documents, this Contract, Exhibits attached to this Contract, including but not limited to the Performance Bond (Exhibit A), Payment Bond (Exhibit B), Workers' Compensation Insurance Certificate (Exhibit C), Insurance Endorsements (Exhibit D), Acknowledgment of Penal and Civil Penalties Concerning Contractor Licensing Laws (Exhibit E), Labor Law Requirements (Exhibit F), Indemnification and Hold Harmless Contract (Exhibit G), Accepted Bid Proposal Form (Exhibit H), 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 April 12, 2021 (the "Effective Date"), and shall remain in full force and effect until Contractor has rendered the services required by this Contract. 3. Payment. For performing and completing the Work in accordance with the Contract Documents, City shall pay Contractor, in full compensation therefor, the amount of $505,882, subject to any additions and deletions pursuant to the terms of the Contract Documents. Said sum shall constitute payment in full for all Work performed hereunder, including, without limitation, all labor, materials, equipment, tools and services used or incorporated in the Work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of the Work as specified in the Contract Documents. City shall make payments to Contractor on account of the Contract sum at the time, in the manner, and upon the conditions specified in the Contract Documents. The City Manager may authorize extra work to fund unforeseen conditions up to the amount approved at the time of award by the City Council. Payment for additional work in excess of this amount requires prior City Council authorization. 4. Contractor's Personnel. 4.1 All Work shall be performed by Contractor or under Contractor's direct supervision, and all personnel shall possess the qualifications, permits, and licenses required by state and local law and by the Notice Inviting Bids/Instructions to Bidders to perform such Services, including, without limitation, a City of Seal Beach business license as required by the Seal Beach Municipal Code. 4.2 Contractor shall be responsible for payment of all employees' wages and benefits, and shall comply with all requirements pertaining to employer's liability, workers' compensation, unemployment insurance, and Social Security. Contractor shall fully comply with the workers' compensation law regarding Contractor and Contractor's employees. 4.3 Contractor shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liabilities, damages, claims, costs and expenses of any nature to the extent arising from Contractor's alleged violations of personnel practices. 4.4 Contractor is, and shall at all times remain as to City, a wholly independent contractor. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act as an agent of City. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor's employees, except as set forth in this Contract. Contractor shall not, at any time, or in any manner, represent that it or any of its officers, agents, or employees are in any manner employees of City. Contractor shall pay all required taxes on amounts paid to Contractor under this Contract, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the Work performed pursuant to this Contract. 4.5 City shall have the right to offset against the amount of any fees due to Contractor under this Contract any amount due to City from Contractor as a result of Contractor's failure to promptly pay to City any reimbursement or indemnification arising under this Section 4. 5. Indemnification. 5.1 Contractor's Duty. Contractor shall defend, indemnify, and hold the City, its elected officials, officers, employees, volunteers, agents, and those City agents serving as independent contractors in the role of City officials (collectively "Indemnitees") free and harmless from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, bid protests, stop notices, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a "Claim," collectively, "Claims"), in any manner arising out of or incident to the performance of the Contract, including without limitation, the payment of all consequential damages and attorneys' fees and other related costs and expenses. Further, Contractor shall appoint competent defense counsel, at Contractor's own cost, expense and risk, to defend any and all such suits, actions or other legal proceedings of every kind arising out of or incident to the performance of the Contract that may be brought or instituted against Indemnitees. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or the other Indemnitees in any such suit, action, or other legal proceeding arising out of or incident to the performance of the Contract. Contractor shall reimburse the City and the other Indemnitees, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Contractor or Indemnitees. This indemnity shall apply to all Claims and liability regardless of whether any insurance policies are applicable. 5.2 Bid Protests. In addition to its obligations pursuant to Section 5.1, Contractor shall reimburse the City for all attorneys' fees and costs incurred by City in connection with, arising out of or incident to any Bid protest. 5.3 Civil Code Exception. Nothing in this Section 5 shall be construed to encompass Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying Contract is subject to Civil Code Section 2782(a) or the City's active negligence to the limited extent that the underlying Contract Documents are subject to Civil Code Section 2782(b), provided such sole negligence, willful misconduct or active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. 5.4 Nonwaiver of Rights. Indemnitees do not, and shall not, waive any rights that they may possess against Contractor because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Contract. 5.5 Waiver of Right of Subrogation. Contractor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation against the Indemnitees, while acting within the scope of their duties, from all claims, losses, and liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor. 5.6 Survival. The provisions of this Section 5 shall survive the termination of the Contract and are in addition to any other rights or remedies that Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against a Contractor shall be conclusive in favor of the Indemnitee's right to recover under this indemnity provision. 6. Insurance. 6.1 Liability Insurance. Contractor shall procure and maintain in full force and effect for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by Contractor, and its agents, representatives, employees and subcontractors. The policy limits set forth below do not act as a limitation upon the amount of indemnification to be provided by Contractor. Contractor shall complete and execute the following documents attached as Exhibits hereto and incorporated herein by this reference: 6.1.1 Exhibit D-1 Commercial General Liability. 6.1.2 Exhibit D-2 Automobile Liability. Additional Insured Endorsement - Additional Insured Endorsement - 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. 6.4 Deductibles and Self -Insured Retentions. Contractor shall inform City of any deductibles or self-insured retentions except with respect to any professional liability insurance. 6.5 Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 6.5.1 City, its officers, officials, employees, designated volunteers and agents serving as independent contractors in the role of City officials, are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no limitations on the scope of protection afforded to City, its officers, officials, employees, designated volunteers or agents serving as independent contractors in the role of City officials which are not also limitations applicable to the named insured. 6.5.2 For any claims related to this Contract, Contractor's insurance coverage shall be primary insurance as respects City, its officers, officials, employees, designated volunteers and agents serving as independent contractors in the role of City officials. Any insurance or self-insurance maintained by City, their officers, officials, employees, designated volunteers or agents serving as independent contractors in the role of City officials shall be excess of Contractor's insurance and shall not contribute with it. 6.5.3 Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 6.5.4 Each insurance policy required by this Section 6 shall be endorsed to state that coverage shall not be canceled or materially modified except after 30 days prior written notice by first class mail has been given to City. 6.5.5 Each insurance policy, except for any professional liability policy, required by this Section 6 shall expressly waive the insurer's right of subrogation against City and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of City or agency officials. 6.6 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VIII unless waived in writing by City's Risk Manager. 6.7 Verification of Coverage. All insurance coverages shall be confirmed by execution of endorsements on forms approved by the City. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by City before services commence. As an alternative to City forms, Contractor's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 7. Liquidated Damages. Should the Contractor fail to complete the Project, or any part thereof, in the time agreed upon in the Contract, the Contractor shall reimburse the City for the additional expense and damage for each calendar day that the Contract remains uncompleted after the Contract completion date. It is agreed that the amount of such additional expense and damage incurred by reason of failure to complete the Contract is the per diem rate of $500.00 per calendar day. Such amount is hereby agreed upon as liquidated damages for the loss to the City resulting from the failure of the Contractor to complete the Project within the allotted time and to the value of the operation of the works dependent thereon. It is expressly understood and agreed that this amount is a reasonable amount and is established in lieu of damages that are incapable of calculation at the inception hereof; and this amount is not to be considered in the nature of a penalty. The City shall have the right to deduct such damages from any amount due, or that may become due to the Contractor, or the amount of such damages shall be due and collectible from the Contractor or the Contractor's Surety. Progress payments made after the scheduled completion date shall not constitute a waiver of liquidated damages. 8. Suspension. City may, in writing, order Contractor to suspend all or any part of the Contractor's Services for the convenience of City or for work stoppages beyond the control of City or Contractor. A suspension of the Services does not void this Contract. 9. Notices. Any notices, bills, invoices, or reports authorized or required by this Contract shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during Contractor's and City's regular business hours or by facsimile before or during Contractor's regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Contract, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this Section. All notices shall be addressed as follows: If to City: City Clerk City of Seal Beach 211 -8th Street Seal Beach, California 90740 Telephone: (562) 431-2527 Fax: (562) 493-9857 With a copy to: Public Works Director City of Seal Beach 211 -8th Street Seal Beach, California 90740 If to Contractor: Sialic Contractors Corporation dba Shawnan 12240 Woodruff Ave Downey, CA 90241 Telephone: (562) 803-9977 Attn: Shawn A Smith, President 10. Non -Assignability; Subcontracting. Contractor shall not assign, transfer, or subcontract any interest in this Contract or the performance of any of Contractor's obligations hereunder. Any attempt by Contractor to so assign, transfer, or subcontract any rights, duties, or obligations arising hereunder shall be null, void and of no effect. 11. Compliance with Laws. Contractor shall comply with all applicable federal, state and local laws, ordinances, codes and regulations in force at the time Contractor performs the Services. 12. Non -Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Contract shall not be a waiver of any other condition of performance under this Contract. In no event shall the making by City of any payment to Contractor constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Contractor, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 13. Attorneys' Fees. In the event that either party to this Contract shall commence any legal action or proceeding to enforce or interpret the provisions of this Contract, each party shall be responsible for their own attorneys' fees. 14. Construction. The validity, interpretation, and performance of this Contract shall be controlled by and construed under the laws of the State of California, with venue in Orange County, California. In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Contract shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Contract or who drafted that portion of the Contract. 15. Workers' Compensation. Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract." 16. Prevailing Wages. The City and the Contractor acknowledge that the Project is a public work to which prevailing wages apply. 17. Entire Contract. This Contract, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between Contractor and City. This Contract supersedes all prior oral or written negotiations, representations, or agreements. This Contract may not be amended, nor any provision or breach hereof waived, except in a writing signed by the parties which expressly refers to this Contract. 18. Severability. The invalidity in whole or in part of any provisions of this Contract shall not void or affect the validity of the other provisions of this Contract. 19. Titles and Headings. The titles and headings used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it. 20. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder. 21. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Contract as of the date first written above. CITY OF SEAL BEACH CONTRACT R: By: By: ✓ . Jill R. Ingram, City Manager ` Attest: By: Glora D. Harper, City Clerk Approved to r By,'' t;raig Steele, City Attorney Name: Shawn Smith Title: President, By: J Nam #A." Title: (Please note, two signatures required for corporations pursuant to California Corporations Code Section 313. EXHIBIT A FAITHFUL PERFORMANCE BOND Bond No. PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS the City of Seal Beach ("City"), has awarded to ("Principal") (Name and address of Contractor) a contract (the "Contract") for the Work described as follows: FY2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP NO. ST2103 (Project name) WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract. NOW, THEREFORE, we, the undersigned Principal, and (Name and address of Surety) ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Dollars ($ ), this amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal's part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto. 12 IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body. Dated: "Principal" By: Its By: Its (Seal) "Surety" By: Its By: Its (Seal) Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located. 13 EXHIBIT B PAYMENT BOND 14 i � 9 Me PAYMENT BOND (LABOR AND MATERIALS) KNOW ALL PERSONS BY THESE PRESENTS that: WHEREAS the City of Seal Beach ("City"), State of California, has awarded to ("Principal") (Name and address of Contractor) a contract (the "Contract") for the Work described as follows: FY2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP NO. ST2103 (Project name) WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. NOW, THEREFORE, we, the undersigned Principal, and (Name and address of Surety) ("Surety") a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars ($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond. Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. 15 The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition. IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body. Dated: "Principal" By: Its By: Its (Seal) "Surety" By: Its By: Its (Seal) Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located. 16 EXHIBIT C WORKER'S COMPENSATION INSURANCE CERTIFICATE 17 WORKERS' COMPENSATION CERTIFICATE OF INSURANCE WHEREAS, the City of Seal Beach ("City") has required certain insurance to be provided by: NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policy or policies described below to the following named insureds and that the same are in force at this time: 1. This certificate is issued to: City of Seal Beach City Hall 211 8t" Street Seal Beach, California 90740 The insureds under such policy or policies are: 2. Workers' Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows: Policy Number Effective Date Expiration Date Its Authorized Representative 18 EXHIBIT D-1 ADDITIONAL INSURED ENDORSEMENT COMMERCIAL GENERAL LIABILITY [INSERT INSURANCE CERTIFICATE SHOWING COMMERCIAL GENERAL LIABILITY] 19 ADDITIONAL INSURED ENDORSEMENT COMPREHENSIVE GENERAL LIABILITY Name and address of named insured ("Named Insured'): Name and address of insurance company ("Company'): General description of agreement(s), permit(s), license(s), and/or activity(ies) insured: Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1. The City of Seal Beach ("City"), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third -party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds. 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereof. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or 20 incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. 9. This endorsement and all notices given hereunder shall be sent to City at: City Manager City of Seal Beach City Hall 211 8t" Street Seal Beach, CA 90740 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH THIS POLICY PERIOD LIMITS OF ENDORSEMENT ATTACHES FROM/TO LIABILITY 11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes: ❑ Contractual Liability ❑ Owners/Landlords/Tenants ❑ Manufacturers/Contractors ❑ Products/Completed Operations ❑ Broad Form Property Damage ❑ Extended Bodily Injury ❑ Broad Form Comprehensive ❑ General Liability Endorsement ❑ Explosion Hazard ❑ Collapse Hazard ❑ Underground Property Damage ❑ Pollution Liability ❑ Liquor Liability R 12. A ❑ deductible or ❑ self-insured retention (check one) of $ applies to all coverage(s) except: if none, so state). The deductible is applicable ❑ per claim or ❑ per occurrence (check one). 13. This is an ❑ occurrence or ❑ claims made policy (check one). 14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed 20 21 Signature of Authorized Representative (Original signature only; no facsimile signature Telephone No.: (_) or initialed signature accepted) 22 EXHIBIT D-2 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY [INSERT INSURANCE CERTIFICATE SHOWING AUTOMOBILE LIABILITY] 23 ADDITIONAL INSURED ENDORSEMENT AUTOMOBILE LIABILITY Name and address of named insured ("Named Insured'): Name and address of insurance company ("Company'): General description of agreement(s), permit(s), license(s), and/or activity(ies) insured: Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the "Policy") or in any endorsement now or hereafter attached thereto, it is agreed as follows: 1. The City of Seal Beach ("City"), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the "Additional Insureds") under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy. 2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy. 3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability. 4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third -party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy. 5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds. 6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement. 7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 24 8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance. 9. This endorsement and all notices given hereunder shall be sent to City at: City Manager City of Seal Beach City Hall 211 8t" Street Seal Beach, CA 90740 10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached. TYPE OF COVERAGES TO WHICH THIS POLICY PERIOD LIMITS OF ENDORSEMENT ATTACHES FROM/TO LIABILITY 11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes: ❑ Any Automobiles ❑ All Owned Automobiles ❑ Non -owned Automobiles ❑ Hired Automobiles ❑ Scheduled Automobiles ❑ Garage Coverage ❑ Truckers Coverage ❑ Motor Carrier Act ❑ Bus Regulatory Reform Act ❑ Public Livery Coverage 12. A ❑ deductible or ❑ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable ❑ per claim or ❑ per occurrence (check one). 13. This is an ❑ occurrence or ❑ claims made policy (check one). 14. This endorsement is effective on Policy Number at 12:01 a.m. and forms a part of I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company. Executed 20 Signature of Authorized Representative (Original signature only; no facsimile signature Telephone No.: (_) or initialed signature accepted) 25 EXHIBIT E ACKNOWLEDGMENT OF PENAL AND CIVIL PENALTIES CONCERNING CONTRACTOR LICENSING LAWS 26 STATEMENT ACKNOWLEDGING PENAL AND CIVIL PENALTIES CONCERNING THE CONTRACTORS' LICENSING LAWS [Business & Professions Code § 7028.15] [Public Contract Code § 20103.5] I, the undersigned, certify that I am aware of the following provisions of California law and that I, or the entity on whose behalf this certification is given, hold a currently valid California contractor's license as set forth below (required at time of award): Business & Professions Code § 7028.15: (a) It is a misdemeanor for any person to submit a bid to a public agency in order to engage in the business or act in the capacity of a contractor within this state without having a license therefore, except in any of the following cases: (1) The person is particularly exempted from this chapter. (2) The bid is submitted on a state project governed by Section 10164 of the Public Contract Code or on any local agency project governed by Section 20104 [now § 20103.5] of the Public Contract Code. (b) If a person has been previously convicted of the offense described in this section, the court shall impose a fine of 20 percent of the price of the contract under which the unlicensed person performed contracting work, or four thousand five hundred dollars ($4,500), whichever is greater, or imprisonment in the county jail for not less than 10 days nor more than six months, or both. In the event the person performing the contracting work has agreed to furnish materials and labor on an hourly basis, "the price of the contract" for the purposes of this subdivision means the aggregate sum of the cost of materials and labor furnished and the cost of completing the work to be performed. (c) This section shall not apply to a joint venture license, as required by Section 7029.1. However, at the time of making a bid as a joint venture, each person submitting the bid shall be subject to this section with respect to his or her individual licensure. (d) This section shall not affect the right or ability of a licensed architect, land surveyor, or registered professional engineer to form joint ventures with licensed contractors to render services within the scope of their respective practices. (e) Unless one of the foregoing exceptions applies, a bid submitted to a public agency by a contractor who is not licensed in accordance with this chapter shall be considered non-responsive and shall be rejected by the public agency. Unless one of the foregoing exceptions applies, a local public agency shall, before awarding a contract or issuing a purchase order, verify that the contractor was properly licensed when the contractor submitted the bid. Notwithstanding any other provision of law, unless one of the foregoing exceptions applies, the registrar may issue a citation to any public officer or employee of a public entity who knowingly awards a contract or issues a purchase order to a contractor who is not licensed pursuant to this chapter. The amount of civil penalties, appeal, and finality of such citations shall be subject to Sections 7028.7 to 7028.13, inclusive. Any contract awarded to, or any purchase order issued to, a contractor who is not licensed pursuant to this chapter is void. (f) Any compliance or noncompliance with subdivision (e) of this section, as added by Chapter 863 of the Statutes of 1989, shall not invalidate any contract or bid awarded by a public agency during which time that subdivision was in effect. (g) A public employee or officer shall not be subject to a citation pursuant to this section if the public employee, officer, or employing agency made an inquiry to the board for the purposes of verifying the license status of any person or contractor and the board failed to respond to the inquiry within three 27 business days. For purposes of this section, a telephone response by the board shall be deemed sufficient. Public Contract Code § 20103.5: In all contracts subject to this part where federal funds are involved, no bid submitted shall be invalidated by the failure of the bidder to be licensed in accordance with the laws of this state. However, at the time the contract is awarded, the contractor shall be properly licensed in accordance with the laws of this state. The first payment for work or material under any contract shall not be made unless and until the Registrar of Contractors verifies to the agency that the records of the Contractors' State License Board indicate that the contractor was properly licensed at the time the contract was awarded. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by law, including, but not limited to, any appropriate disciplinary action by the Contractors' State License Board. The agency shall include a statement to that effect in the standard form of pre -qualification questionnaire and financial statement. Failure of the Bidder to obtain proper and adequate licensing for an award of a contract shall constitute a failure to execute the Contract and shall result in the forfeiture of the security of the Bidder. License No.: Class: Expiration Date: Date: SP -28 EXHIBIT F LABOR LAW REQUIREMENTS SP -29 AGREEMENT TO COMPLY WITH CALIFORNIA LABOR LAW REQUIREMENTS [Labor Code §§ 1720, 1773.8, 1775, 1776, 1777.5, 1813, 1860, 1861, 3700] The undersigned Contractor certifies that it is aware of and hereby agrees to fully comply with the Following provisions of California law: 1. Contractor acknowledges that this Contract is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency ("Agency") and agrees to be bound by all the provisions thereof as though set forth in full herein. 2. Contractor agrees to comply with the provisions of California Labor Code Section 1773.8 which requires the payment of travel and subsistence payments to each worker needed to execute the Work to the extent required by law. 3. Contractor agrees to comply with the provisions of California Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the Agency, forfeit not more than fifty dollars ($50) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under the Contract by Contractor or by any subcontractor. 4. Contractor agrees to comply with the provisions of California Labor Code Section 1776 which require Contractor and each subcontractor to (1) keep accurate payroll records, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the Agency of the location of the records. The Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors. 5. Contractor agrees to comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors. 6. Contractor agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the Agency, forfeit twenty-five dollars ($25) for each worker employed in the execution of the Contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code. 7. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract." Date Signature SP -30 EXHIBIT G INDEMNIFICATION AND HOLD HARMLESS AGREEMENT SP -31 INDEMNIFICATION AND HOLD HARMLESS AGREEMENT AND WAIVER OF SUBROGATION AND CONTRIBUTION OFFICIAL TITLE OF PROJECT: FY2020-2021 Arterial Street Resurfacing Project (Marina Drive), CIP No. ST2103 Indemnitor(s) (list all names): To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and expense, to defend, protect, indemnify, and hold harmless the City of Seal Beach and its elected officials, officers, attorneys, agents, employees, volunteers, successors, and assigns (collectively "Indemnitees") from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith (collectively "Liabilities"), arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act, failure to act, error, or omission of Indemnitor or any of its officers, agents, servants, employees, subcontractors, materialmen, suppliers or their officers, agents, servants or employees, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to the above -referenced contract, agreement, license, or permit (the "Contract") or the performance or failure to perform any term, provision, covenant, or condition of the Contract, including this indemnity provision. This indemnity provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence. This indemnity provision shall survive the termination of the Contract and is in addition to any other rights or remedies which Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against an Indemnitee shall be conclusive in favor of the Indemnitee's right to recover under this indemnity provision. Indemnitor shall pay Indemnitees for any attorneys fees and costs incurred in enforcing this indemnification provision. Notwithstanding the foregoing, nothing in this instrument shall be construed to encompass (a) Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying Contract is subject to Civil Code § 2782(a) or (b) the contracting public agency's active negligence to the limited extent that the underlying Contract is subject to Civil Code § 2782(b). This indemnity is effective without reference to the existence or applicability of any insurance coverage which may have been required under the Contract or any additional insured endorsements which may extend to Indemnitees. Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligence by the Indemnitees. In the event there is more than one person or entity named in the Contract as an Indemnitor, then all obligations, liabilities, covenants and conditions under this instrument shall be joint and several. "Indemnitor" Name Name: By: By: _ Its Its SP -32 EXHIBIT H ACCEPTED BID PROPOSAL SP -33 i�0� SEA('ec�9ti f� G� nyy AGENDA STAFF REPORT �1'',,C'QCIFORN�P'r DATE: April 12, 2021 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Kelly Telford, CPA, Finance Director/Treasurer SUBJECT: Approving Budget Amendment 21-10-03 to Increase General Fund Appropriations to Pay for Utility Costs for City Accounts SUMMARY OF REQUEST: That the City Council adopt Resolution 7139: Approving Budget Amendment 21-10-03 to increase appropriations to pay for water, sewer, street sweeping and tree trimming for City utility accounts for Fiscal Year 2020-21; and, 2. To repay the Water Fund, Sewer Fund and General Fund for utility costs in Fiscal Years 2019-20, 2018-19, 2017-18, 2016-17 and 2015-16. BACKGROUND AND ANALYSIS: In July 2020 as the Water and Sewer Rate Study project was moving forward, the City's consultant inquired about whether or not the City had been paying for the water and sewer usage at City -owned properties. At that time, the Finance Department began to analyze the City accounts and accounting activity. The analysis looked at each bill for each cycle over a ten year period with a goal of identifying if the balances were written off, paid, or still outstanding. During the analysis, the Finance Department concluded that there were some inconsistent transactions that occurred as well as a change in the procedures related to the City accounts. Uncertain of the full impacts of these inconsistencies, the City Manager directed the City Attorney to hire an independent consultant to verify the analysis conducted by the Finance Department. Willis Consulting & Accounting was hired to perform an Agreed -Upon Procedures engagement to review the City's utility accounts and accounting activity. The consultant was directed to critically analyze the City's utility accounts and accounting activity and confirm the City's past practices with regard to the payment of the City's utility accounts and whether or not those payments have been made. Agenda Item L The engagement is in its final stages and is expected to be completed within the next few months, however, the City Manager and Finance Director feel strongly it is important to bring forward the preliminary findings with regards to the payments and propose recommendations to the Council to remedy the issue. The engagement looked at seven years of historical information for the City's utility accounts. Willis Consulting & Accounting confirmed that procedures changed throughout the seven years. The method of write-off was inconsistent and in some cases, payments appeared to have been made, however these were reversed and ultimately no payments were made. As a result of these findings, the Finance Department has created a City utility account payment procedure that outlines the process and requirement for the City's payment of utility account balances. The new procedure requires the City to be treated as a normal utility customer and pay for its utility usage each time utility bills are generated. In order to implement this procedure, the Finance Department is requesting approval of Budget Amendment 21-09-02 to increase appropriations in the General Fund by $195,800 for Water Utility, Sewer Utility, Tree Trimming and Street Sweeping expenditures for the City's utility bills for Fiscal Year 2020-21. This includes retroactive payments back to July 1, 2020. Also included in the proposed budget amendment is an increase in appropriations in the General Fund of $705,407. This would be distributed as follows and would allow the City to retroactively repay the Water Fund, Sewer Fund and General Fund for the past five years of utility bills from Fiscal Year 2015-16 through Fiscal Year 2019-20. The proposed budget amendment is as follows: Description Account Current Budget Proposed Budget Budget Amendment (Difference) Expenditure - Water 001-052-41030 $ - $ 190,000 $ 190,000 Expenditure - Sewer 001-052-41040 - 5,000 5,000 Expenditure - Street Sweeping 001-052-41050 - 500 500 Expenditure - Tree Trimming 001-052-41060 - 300 300 Expenditure - Transfers Out -Operating 001-080-47002 1,040,624 1,746,031 705,407 Revenue - Transfers In - General Fund 001-000-31502 108,000 110,528 2,528 Revenue - Transfers In - Water Operating 017-000-31502 2,044,200 2,724,962 680,762 Revenue - Transfers In - Water Capital 019-000-31502 - 2,680 2,680 Revenue - Transfers In - Sewer Operating 043-000-31502 902,200 907,721 5,521 Revenue - Transfers In - Sewer Capital 044-000-31502 - 13,916 13,916 ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. Page 2 FINANCIAL IMPACT: The proposed budget amendment includes an increase in transfers in revenue in the General Fund, Water Operating and Capital Funds, and Sewer Operating and Capital Funds with a corresponding increase in General Fund appropriations of $705,407 for utility costs for City accounts for the past five years. The appropriation increase is proposed using General Fund reserves. In addition, the budget amendment increases appropriations for utility expenditures in the General Fund by $195,800 for Fiscal Year 2020-21 utility costs for the City accounts. Approval of the proposed budget amendment will allow the City to repay the past five fiscal years of the City's utility bills and the current fiscal year of utility bills. 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 7139: 1. Approving Budget Amendment 21-10-03 to increase appropriations to pay for water, sewer, street sweeping and tree trimming for City utility accounts for Fiscal Year 2020-21; and, 2. To repay the Water Fund, Sewer Fund and General Fund for utility costs in Fiscal Years 2019-20, 2018-19, 2017-18, 2016-17 and 2015-16. SUBMITTED BY: Kelly Telford Kelly Telford, CPA, Finance Director/Treasurer ATTACHMENTS: A. Resolution 7139 Page 3 NOTED AND APPROVED: Jill R. Ingram Jill R. Ingram, City Manager RESOLUTION 7139 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING BUDGET AMENDMENT 21-10-03 TO FUND CITY PAYMENTS FOR UTILITY COSTS FOR FISCAL YEARS 2015- 2016 THROUGH 2020-2021, INCLUSIVE, AND DIRECTING THE CITY MANAGER TO TRANSFER THE APPROPRIATE FUND AMOUNTS FOR THE CITY'S UTILITY SERVICES WHEREAS, as a result of inquiries associated with the City's 2020 Water and Sewer Rate Study, the City Manager directed staff to engage an independent auditor to review billing and accounting transactions for the City's water and sewer services; and WHEREAS, the City retained Willis Consulting & Accounting to perform an Agreed -Upon Procedures engagement to review the City's utility accounts and accounting activity; and WHEREAS, this independent review has determined preliminarily that the City has not transferred funds to the Water and Sewer funds to pay for City use of utility services in the past five fiscal years; and WHEREAS, the City Manager and staff have recommended a plan to reimburse the Water and Sewer funds for City utility bills for the current fiscal year and the five fiscal years immediately preceding; and WHEREAS, the City Council is directing the City Manager to ensure that all payments are transferred for the current fiscal year and the five fiscal years immediately preceding; and WHEREAS, the City's failure to transfer funds in past years does not impact the analysis in the 2020 Water and Sewer rate study, which assumes that the City makes payments in fiscal year 2020-2021 and going forward. THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves budget amendment 21-10-03 to increase appropriations to pay for water, sewer, street sweeping and tree trimming for City utility accounts for Fiscal Year 2020-21 and to repay the Water Fund, Sewer Fund and General Fund for City utility costs in Fiscal Years 2019-20, 2018-19, 2017-18, 2016-17 and 2015-16, as specified in the staff report. Section 2. The Council hereby directs the City Manager to execute the payments specified in the staff report, to implement the processes necessary to ensure that the City continues to pay for its utility services in the future, and to submit the final report of Willis Consulting & Auditing to the City Council when it is finalized. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 12th day of April, 2021 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Joe Kalmick, 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 7139 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of April, 2021. Gloria D. Harper, City Clerk