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HomeMy WebLinkAboutPacket_12092024 Final     A G E N D A MEETING OF THE CITY COUNCIL Monday, December 9, 2024 ~ 7:00 PM City Council Chambers 211 Eighth Street Seal Beach, California SCHELLY SUSTARSIC MAYOR Fourth District LISA LANDAU MAYOR PRO TEM Third District   JOE KALMICK COUNCIL MEMBER First District                                                           THOMAS MOORE COUNCIL MEMBER Second District     NATHAN STEELE 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  TV-3  and  on  the  City's  website (www.sealbeachca.gov). Check  SBTV-3  schedule  for  the  rebroadcast  of  meetings.  The meetings are also available on demand on the City’s website (starting 2012).   In  compliance with  the Americans with  Disabilities Act of 1990, if  you require disability related modifications or accommodations, including auxiliary aids or services to attend or participate in the City  Council  meeting, please  call  the  City  Clerk's  office  at  (562) 431-2527  at  least 48 hours prior to the meeting. CITY COUNCIL NORMS:                               Adopted on June 12, 2023 •Maintain a citywide perspective, while being mindful of our districts. •Move from I to we, and from campaigning to governing. •Work together as a body, modeling teamwork and civility for our community. •Assume good intent. •Disagree agreeably and professionally.  •Utilize long range plans to provide big picture context that is realistic and achievable. •Stay focused on the topic at hand.  Ensure each member of Council has an opportunity to speak. •Demonstrate respect, consideration, and courtesy to all. •Share information and avoid surprises. •Keep confidential things confidential. •Respect the Council/Manager form of government and the roles of each party. •Communicate concerns about staff to the City Manager; do not criticize staff in public.                                                                                          CIVILITY PRINCIPLES: Treat everyone courteously; Listen to others respectfully; Exercise self-control;  Give open-minded consideration to all viewpoints;  Focus on the issues and avoid personalizing debate; and, Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions.  FOLLOW US ON FACEBOOK FOLLOW US ON INSTAGRAM FOLLOW US ON TWITTER/X                                       @CITYOFSEALBEACH                                                             @CITYOFSEALBEACHCA                                    @SEALBEACHCITYCA @SEALBEACHRECREATION&COMMUNITYSERVICES       @SEALBEACH_LIFEGUARD @SEALBEACHPOLICEDEPARTMENT                                    @SEALBEACHPOLICE                                                                                                   @SEALBEACHPUBLICWORKS                                                                                                   @K9YOSA                                                                                                   @K9.SAURUS CALL TO ORDER PLEDGE OF ALLEGIANCE COUNCIL ROLL CALL PRESENTATIONS / RECOGNITIONS •McAuliffe Middle School Christmas Carolers •Community Spotlight in Recognition of Council Member Thomas Moore •Courtesy of the Floor Extended to Mayor & Council Members •Courtesy of the Floor Extended to Outgoing Council Member Thomas Moore •Community Spotlight in Recognition of Mayor Schelly Sustarsic •Courtesy of the Floor Extended to Mayor Pro Tem & Council Members •Courtesy of the Floor Extended to Outgoing Mayor Schelly Sustarsic ORAL COMMUNICATIONS At this time members of the public may address the Council regarding any items within the  subject  matter jurisdiction  of the City Council. Pursuant  to the Brown Act, the Council  cannot  discuss  or  take  action  on  any  items  not  on  the  agenda  unless authorized  by  law. Matters  not  on the agenda  may, at the Council's  discretion, be referred to the City Manager and placed on a future agenda.   Those members of the public  wishing to speak  are asked to  come forward to  the microphone and state their name for the record. All speakers will be limited to a period of five (5) minutes. Speakers must address their comments only to the Mayor and entire City Council, and not to any individual, member of the staff or audience. Any documents for review should be presented to the City Clerk for distribution. Speaker cards will be available at the Clerk’s desk  for those  wishing to  sign  up to  address  the  Council, although  the submission of a speaker  card is  not  required  in order to address  the Council. 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. CITY ATTORNEY REPORT Nicholas Ghirelli, City Attorney    CITY MANAGER REPORT Patrick Gallegos, Interim City Manager    COUNCIL COMMENTS General Council Member comments and reporting pursuant to AB 1234. 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 City Council Minutes - That the City Council approve the minutes of the Closed Session and  Regular City Council meetings held on November  12, 2024, and  the  Special  Closed  Session  meeting  held  on November 26, 2024.   B.Demand on City Treasury (Fiscal Year 2025) - Ratification.   C.Second Reading and Adoption of Ordinance 1716 Adopting Zone Text Amendment 24-03 - That the City Council conduct second reading, by title only, and adopt Ordinance 1716 titled "an Ordinance of the City of Seal Beach amending portions of Title 11 of the Seal Beach Municipal Code pertaining to administrative review of modifications to nonconforming residential structures, administrative review of reasonable accommodation requests, modification of residential  front yard permeable surface requirements, and updates  to  the accessory dwelling unit standards pursuant to Senate Bill 1211 and Assembly Bill 2533 (statutes of 2024), and finding the Ordinance to be exempt from the California Environmental Quality Act.”   D.Amendments to Professional Service Agreements with Lisa Wise Consulting, Inc. - That the City Council adopt Resolution 7581: 1. Authorizing Amendments  to  two  Professional  Service  Agreements  with  Lisa  Wise Consulting, Inc. extending the term of each to September 30, 2025; and, 2. Authorizing the City Manager to execute the Amendments.   E.Amendment to the Professional Services Agreement with Holistic System Integration Solutions - That the City Council adopt Resolution 7582: 1. Approving Amendment  1  to  the  Professional  Services Agreement  with Holistic System Integration Solutions to approve an increase in compensation of $15,000 for continued post-implementation support of Tyler Technologies’ Enterprise Permitting and Licensing Land Management Software System for a revised total not-to-exceed amount of $20,000, and a seven-month extension to expire on June 30, 2025; and, 2. Directing the City Manager to execute Amendment 1 on behalf of the City.    F.Approving and Authorizing Amendment No. 2 to the Agreement between the City of Seal Beach and Clear Channel Outdoor, LLC for Bus Shelter Maintenance and Advertising Services - That  the  City  Council  adopt Resolution 7583: 1. Approving Amendment No. 2 to the Agreement for Bus Shelter Maintenance and Advertising with Clear Channel Outdoor, LLC dated March 10, 2014, as previously amended by Amendment No. 1 dated July 27, 2020, and  previously  extended  by  letter  dated  January  1, 2019  (“First Extension”), and extending the term of the agreement for an additional five- year  term  (“Second  Extension”), and  supplementing  the  services  to  be provided by Clear Channel Outdoor, LLC, and revising the annual fee payable to the City; and, 2. Authorizing the City Manager to execute Amendment No. 2 to the Agreement on behalf of the City.     G.Approving Amendment No. 6 to the Cooperative Agreement No. C-6-1126 with Orange County Transportation Authority for the OCTA I-405 Improvement Project (CIP ST1809) - That the City Council adopt Resolution 7584: 1. Approving Amendment No. 6 to  Cooperative Agreement No. C-6- 1126 dated July 29, 2016, as previously amended by Amendment No. 1 dated June 11, 2019, Amendment No. 2 dated January 21, 2022, Amendment No. 3 dated April 25, 2023, Amendment No. 4 dated July 5, 2023, and Amendment No. 5 dated June 25, 2024, with Orange County Transportation Authority; and, 2. Authorizing the City Manager to execute Amendment No. 6 to Cooperative Agreement No. C-6-1126.   H.Submittal of Yearly Expenditure Report to Orange County Transportation Authority for Measure M2 Eligibility - That  the  City  Council  adopt Resolution 7585: 1. Finding the yearly expenditure report to Orange County Transportation Authority (OCTA) for Measure M2 Eligibility for FY 2023-2024 was  prepared  in  conformance  with  the M2  Expenditure  Report Template provided in the Renewed Measure M Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year and balances at the end of the fiscal year; and, 2. Adopting M2 Expenditure Report for FY 2023-24; and, 3. Directing the City Manager, or their designee, to submit the M2 Expenditure Report to OCTA no later than December 31, 2024.   I.Notice of Completion for the FY 2024-25 Annual Slurry Seal Program, CIP STO1 - That the City Council adopt Resolution 7586: 1. Accepting the FY 2024-25 Annual Slurry  Seal Program, CIP  STO1, by Petrochem  Materials Innovation, LLC in the amount of $242,358.58; 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 thirty- five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.   J.Consideration of Memorandum of Understanding (MOU) with the Seal Beach Marine Safety Management Association for the Period of July 1, 2024 through June 30, 2026 - That the Council adopt Resolution 7587: 1. Approving the Memorandum of Understanding with the Seal  Beach Marine Safety Management Association for the period of July 1, 2024 through June 30, 2026; and, 2. Approving Budget Amendment BA#25-06-01 in the amount of $8,266; and, 3. Authorizing the City Manager to execute the Memorandum of  Understanding  with  the  Seal  Beach  Marine  Safety  Management Association.   K.Adopting a Resolution to Change and Update the Existing Marine Safety Part-Time Job Classifications and Descriptions - That  the City Council adopt Resolution 7588 approving the changes and updates to the to the City of Seal Beach Marine Safety part-time job classifications.   L.Homeland Security Grant Program Agreement to Transfer Property or Funds for Fiscal Year 2022 - That the City Council adopt Resolution 7589: 1. Approving  the  Agreement  to  Transfer  Property  or  Funds  for  FY  2022 Homeland  Security  Grant Program Purposes; and, 2. Authorizing  the  City Manager to execute the agreement and any related documents on the City’s behalf that are necessary for the transfer of property or funds under the Fiscal Year 2022 Homeland Security Grant Program.   M.Approving an Amendment to the Classification Plan and Designating the Pay Grade and Status of the Information Technology Manager Classification - That the City Council adopt Resolution 7590: 1. Authorizing an  amendment  to  the  Classification  Plan  to  reclassify  the  Management Analyst position within the Police Department to an Information Technology Manager; and, 2. Designating  the  Information  Technology  Manager  job classification to Grade 36 on the Seal Beach Full Time Pay Schedule.   N.Adopt Agreements and Resolutions Necessary to Implement the Increase to the City’s Sales and Use Tax Ordinance as a Result of Measure GG - That the City Council adopt: 1. Resolution 7591 approving and authorizing the City Manager to execute new agreements with the California Department  of  Tax  and  Fee Administration for  Implementation  of a  Local Transactions and Use Tax to implement Measure GG’s increase to such tax; and, 2. Resolution 7592 authorizing Examination of Transactions and Use Tax records.   O.Agreement for Measure “GG” Transactions Tax Audit & Information Services with Hinderliter, De Llamas and Associates - That  the  City Council adopt  Resolution  7593: 1.  Approving the Agreement for  Measure “GG” Transaction Tax Audit & Information Services with Hinderliter, de Llamas and Associates  dba  HdL  Companies  (HdL); and, 2. Authorizing  the  City Manager to execute the Agreement.   ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC HEARING P.Specific Plan Amendment 24-2 for the Amendment to the Main Street Specific Plan Pertaining to the Main Street Outdoor Uses Development Standards to Allow Size Flexibility for Outdoor Dining Tables, Merchandise Displays, and Benches - That the City Council: 1. Conduct a Public  Hearing  to  receive  input  and  consider  the  Planning  Commission’s recommendation  to  approve  Ordinance  1717, adopting  Specific  Plan Amendment 24-2; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1717, an Ordinance adopting Specific Plan Amendment 24-2 for the amendment of the Main Street Specific Plan pertaining to the Main Street Outdoor  Uses  Development Standards  to  allow  size  flexibility  for  outdoor dining tables, merchandise displays, and benches, and finding the proposed Ordinance exempt from the California Environmental Quality Act.   UNFINISHED / CONTINUED BUSINESS NEW BUSINESS Q.Code Enforcement Multiple Unit Inspection Policy - That the City Council adopt  Resolution  7594  establishing  policies  and  procedures  for  Code Enforcement  inspections of  multiple unit  residential  buildings, which  have reported substandard conditions, pursuant to the requirements of Assembly Bill 548.   COUNCIL ITEMS R.Declare Results of the November 5, 2024 Election For City Council Districts Two and Four and Measure GG and Swear-In the Newly Elected City Council Members - That  the  City Council  adopt  Resolution 7595: 1. Declaring the results of the November 5, 2024, election for Seal Beach City Council Districts Two and Four  and Measure GG; and, 2. Swearing-in the newly elected city officials for a full term: District 2 – Ben Wong and District 4 – Patty Senecal.   NEW BUSINESS S.City Council Reorganization - That the City Council approve reorganization of the City Council and selection of Mayor and Mayor Pro Tempore for 2025.   ADJOURNMENT Adjourn the City Council to Monday, January 13, 2025 at 5:30 p.m. to meet in closed session, if deemed necessary. Note:  The December 23, 2024 City Council meeting has been cancelled. Agenda Item A AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Approval of the City Council Minutes ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on November 12, 2024, and the Special Closed Session meeting held on November 26, 2024. 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. RECOMMENDATION: That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on November 12, 2024, and the Special Closed Session meeting held on November 26, 2024. Page 2 1 9 3 6 SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Patrick Gallegos Gloria D. Harper, City Clerk Patrick Gallegos, Interim City Manager Prepared by: Brandon DeCriscio, Deputy City Clerk ATTACHMENTS: A. Minutes – Closed Session, November 12, 2024 B. Minutes – Regular Session, November 12, 2024 C. Minutes – Special Closed Session, November 26, 2024 9 6 6 7 Seal Beach, California November 12, 2024 The City Council met in Closed Session at 5:30 p.m. in the City Hall Conference Room. ROLL CALL Present: Mayor Sustarsic Council Members: Moore, Landau, Kalmick, Steele Absent: None City Staff: Nicholas Ghirelli, City Attorney Patrick Gallegos, Interim City Manager Alexa Smittle, Director of Community Development Iris Lee, Director of Public Works Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. Speakers: None. Mayor Sustarsic closed oral communications. CLOSED SESSION A. Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): 1 potential case B. Conference with Legal Counsel Existing Litigation Pursuant to Government Code Section 54956.9(d)(1) Beach House at the River, LLC v. City of Seal Beach Orange County Superior Court Case No. 30-2023-01314997-CU-MC-CJC Mayor Pro Tem Landau recused herself from the meeting prior to the discussion of Item B. ADJOURNMENT Mayor Sustarsic adjourned the Closed Session meeting at 6:58 p.m. Gloria D. Harper, City Clerk City of Seal Beach Approved: Schelly Sustarsic, Mayor Attested: Gloria D. Harper, City Clerk Seal Beach, California November 12, 2024 The City Council met in Regular Session at 7:06 p.m. in the City Council Chamber. Mayor Pro Tem Landau led the Pledge of Allegiance. ROLL CALL Present: Mayor Sustarsic Council Members: Kalmick, Moore, Steele, Landau Absent: None City Staff: Nicholas Ghirelli, City Attorney Patrick Gallegos, Interim City Manager Michael Henderson, Police Chief Barbara Arenado, Director of Finance/City Treasurer Alexa Smittle, Director of Community Development Iris Lee, Director of Public Works Joe Bailey, Marine Safety Chief Craig Covey, Orange County Fire Authority Division 1 Chief Kal Cain, Orange County Fire Authority Fire Captain Gloria D. Harper, City Clerk Nick Nicholas, Police Captain Mike Ezroj, Police Captain Brian Gray, Emergency Services Coordinator Julia Clasby, Police Lieutenant Tim Kelsey, Recreation Manager David Spitz, Associate Engineer Shaun Temple, Planning Manager PRESENTATIONS / RECOGNITIONS National Nurse Practitioner Week – November 10-16, 2024 Recognition of Police Officer Ryan Corbin Orange County Sanitation District Construction Update by Director of Engineering Mike Dorman ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. Speakers: Catherine Showalter, Glen Rabenn, Don Schwartz, Susan Perrell, Mark Mihalco, Hector Huffington, Patty Senecal, Patty Campbell, Theresa Miller, and Tom Quinn. Mayor Sustarsic closed oral communications. Two (2) supplemental communications were received after the posting of the agenda; they were distributed to the City Council and made available to the public. 9 6 7 9 APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Council Member Kalmick moved, second by Council Member Moore, to approve the agenda. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried CITY ATTORNEY REPORT City Attorney Ghirelli reported that the City Council met in Closed Session regarding the two (2) items on the posted agenda. All five (5) Council Members were present, and no reportable action was taken. Mayor Pro Tem Landau recused herself from the meeting prior to the discussion of Item B. CITY MANAGER REPORT Interim City Manager Gallegos reported that the annual Seal Beach Turkey Trot will be held on Saturday, November 23, 2024 from 11:00 a.m. - 12:00 p.m. at Eisenhower Park. Additionally, he noted that the annual Seal Beach Christmas Tree Lighting Ceremony will be held on Saturday, November 23, 2024, from 4:00 p.m. - 7:00 p.m. at Eisenhower Park. Lastly, Interim City Manager Gallegos wished everyone a Happy Thanksgiving. COUNCIL COMMENTS Council Member Kalmick reported his attendance at the Southern California Association of Governments (SCAG) meeting, the SCAG Energy and Environment Committee meeting, the McGaugh Elementary School Veterans Day Flag Deck Ceremony, the Orange County Fire Authority (OCFA) and Seal Beach Police Department Active Shooter Drill, the Eisenhower Park Veterans Day Ceremony, and the OCFA Operations Committee meeting. Council Member Moore thanked the Public Works department for fixing the entrance sign in College Park West. Additionally, Council Member Moore reminded staff of City Council’s direction to allocate Measure GG funds to infrastructure needs, to work on a pension pay-down plan, and to develop a 3–5 year financial plan to address any negative balances. Lastly, Council Member Moore wished everyone a Happy Thanksgiving. Council Member Steele reported his attendance at the McGaugh Elementary School Veterans Day Flag Deck Ceremony, the Boeing Open House, and the Orange County Older Adults Advisory Commission (OC-OAAC) meeting. He noted that one of the goals of OC-OAAC is to set up a one-stop resource phone line to eliminate the need for senior citizens to call several agencies to locate the resources needed. Lastly, Council Member 9 6 7 9 Steele wished everyone a Happy Thanksgiving. Mayor Pro Tem Landau reported her attendance at the Seal Beach Health and Rehabilitation Center Veterans Day Ceremony, the Edison Park Veterans Day Ceremony, and the Neighbor 4 Neighbor event. She encouraged residents interested in the Neighbor 4 Neighbor program to reach out to Seargent Gray. Lastly, Mayor Pro Tem Landau wished everyone a Happy Thanksgiving. Mayor Sustarsic reported her attendance at the Seal Beach Trunk or Treat event, the Neighbor 4 Neighbor event, an Orange County Sanitation District (OCSan) Operations Committee meeting, the McGaugh Elementary School Veterans Day Flag Deck Ceremony, and the Eisenhower Park Veterans Day Ceremony. Additionally, Mayor Sustarsic announced that the Seal Beach Police Department Coffee with a Cop event will be held on Tuesday, November 19, 2024, from 5:00 p.m. - 6:00 p.m. at Starbucks, located in the Old Ranch Town Center. Lastly, she announced that the Los Alamitos-Rossmoor Library will host their grand reopening on November 18, 2024, at 9:30 a.m. COUNCIL ITEMS There were no council items. CONSENT CALENDAR A. Approval of the October 28, 2024 City Council Minutes - That the City Council approve the minutes of the Closed Session and Regular City Council meeting held on October 28, 2024. B. Demand on City Treasury (Fiscal Year 2025) - Ratification. C. Monthly Investment Report (November 12, 2024) - Receive and file. D. Report of City Manager and Department Heads Authorized Contracts - That the City Council receive and file the report. E. Approving Submittal of FY 2024-25 Measure M2 Eligibility Seven-Year Capital Improvement Program Amendment - That the City Council approve the submittal of the City’s amended seven-year Measure M2 Capital Improvement Program (CIP) for FY 2024-25 through FY 2030-31. F. Establishing the Regular Meeting Time of the Environmental Quality Control Board - That the City Council approve Resolution 7574 establishing the third Wednesday of the month at 6:15 p.m. as the regular meeting time for the Environmental Quality Control Board. G. Professional Services Agreement with Michael Baker International for the Completion of the Local Coastal Program - That the City Council adopt Resolution 7575: 1. Approving a Professional Services Agreement between the City of Seal Beach 9 6 7 9 and Michael Baker International, Inc., for the City’s Local Coastal Program update for an amount not-to-exceed $450,000 for the contract term; and, 2. Authorizing and directing the City Manager to execute the Agreement. H. Amendment to the Professional Services Agreement with Stantec Consulting Services, Inc. - That the City Council adopt Resolution 7576: 1. Approving Amendment 1 to the Professional Services Agreement with Stantec Consulting Services, Inc., to approve an increase in compensation of $67,000 for scope amendments, for a revised total not-to-exceed amount of $459,254, a contingency amount of $19,613, and a six- month extension to expire on September 30, 2025; and, 2. Directing the City Manager to execute Amendment 1 on behalf of the City. I. Notice of Completion for the Beverly Manor Well Rehabilitation, CIP WT0904 - That the City Council adopt Resolution 7577: 1. Accepting the Beverly Manor Well Rehabilitation, CIP WT0904, by General Pump Company, Inc., in the amount of $674,360; 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 thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. J. Awarding and Authorizing a Professional Services Agreement with Stantec Consulting Services, Inc., for the San Gabriel River Trash Mitigation Initiative Feasibility Study - That the City Council adopt Resolution 7578: 1. Approving and awarding a Professional Services Agreement with Stantec Consulting Services, Inc., in a not-to-exceed amount of $349,933 to provide research, analysis, and support services for the San Gabriel River Trash Mitigation Initiative Feasibility Study; and, 2. Authorizing and directing the City Manager to execute the Professional Services Agreement. K. Notice of Completion for Pier Restroom Renovation Project, CIP BP2202 - That the City Council adopt Resolution 7579: 1. Accepting the Pier Restroom Renovation Project, CIP BP2202, by R Dependable Const Inc., in the amount of $261,070.08; 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 thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. L. Approving and Authorizing the City Manager to Execute an Agreement with Michael Baker International for the Five-Year Update to the Seal Beach Local Hazard Mitigation Plan Pursuant to the Federal Emergency Management Association Hazard Mitigation Grant Program - That the City Council adopt Resolution 7580: 1. Approving the contract documents for the City of Seal Beach Local Hazard Mitigation Plan Five-Year Update; and, 2. Approving and awarding a Professional Services Agreement to Michael Baker International in the amount of $118,530; and, 3. Authorizing and directing the City Manager to execute a Professional Services Agreement with Michael Baker International; and, 4. Rejecting all other proposals. 9 6 7 9 Council Member Steele moved, second by Mayor Sustarsic to approve the recommended actions on the consent calendar. The vote below is for the Consent Calendar Items. AYES: Kalmick, Moore, Steele, Landau, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR There were no items removed from the consent calendar. PUBLIC HEARING M. Zone Text Amendment 24-03 Amending Portions of Title 11 of the Seal Beach Municipal Code Pertaining to Administrative Review of Modifications to Nonconforming Residential Structures, Administrative Review of Reasonable Accommodation Requests, Modification to Residential Front Yard Permeable Surface Requirements, and Updates to the Accessory Dwelling Unit Standards Pursuant to Senate Bill 1211 and Assembly Bill 2533 (Statute of 2024) - That the City Council: 1. Conduct a public hearing to receive input and consider the Planning Commission’s recommendation to approve Ordinance 1716, adopting Zone Text Amendment 24-03; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1716, amending portions of Title 11 of the Seal Beach Municipal Code pertaining to nonconforming residential structures, reasonable accommodations, residential permeable surface requirements, and accessory dwelling units, and finding the proposed ordinance exempt from the California Environmental Quality Act (CEQA). Planning Manager Temple provided a comprehensive staff report. Council Member Steele’s questions were addressed by Planning Manager Temple and City Attorney Ghirelli. Mayor Sustarsic opened the public hearing. Speakers: None. Mayor Sustarsic closed the public hearing. A discussion ensued between Mayor Pro Tem Landau, Mayor Sustarsic, Council Member Kalmick, Community Development Director Smittle, Planning Manager Temple, and City Attorney Ghirelli. Council Member Kalmick moved, second by Council Member Moore to introduce, waive full reading, and read by title only, Ordinance 1716, amending portions of Title 11 of the Seal Beach Municipal Code pertaining to nonconforming residential structures, 9 6 7 9 reasonable accommodations, residential permeable surface requirements, and accessory dwelling units, and finding the proposed ordinance exempt from the California Environmental Quality Act (CEQA). AYES: Kalmick, Moore, Steele, Landau, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried UNFINISHED/CONTINUED BUSINESS There were no unfinished/continued business items. NEW BUSINESS N. Hearing to Consider Customer Appeal of Water Bill at 315 Central Avenue - That the City Council conduct a hearing regarding a disputed water bill for the billing period covering March 27, 2024 - May 29, 2024. After considering the evidence presented by the appellant and staff, staff recommends that the City Council deny the appeal and uphold the charges. Director of Finance Arenado provided an overview of the staff report. The questions and concerns of Council Members Kalmick and Steele, along with those of Mayor Sustarsic, were addressed by Public Works Director Lee and Director of Finance Arenado. Mayor Pro Tem Landau moved, second by Council Member Moore to deny the appeal and uphold the charges. AYES: Kalmick, Moore, Steele, Landau, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried ADJOURNMENT Mayor Sustarsic adjourned the City Council at 9:01 p.m. to Monday, December 9, 2024, to meet in Closed Session if deemed necessary. Mayor Sustarsic announced that the November 25, 2024, City Council meeting has been cancelled. 9 6 7 9 __________________________ Gloria D. Harper, City Clerk City of Seal Beach Approved: ___________________________ Schelly Sustarsic, Mayor Attested: ____________________________ Gloria D. Harper, City Clerk 9 6 7 6 Seal Beach, California November 26, 2024 The City Council met in Closed Session at 5:30 p.m. in the City Hall Conference Room. ROLL CALL Present: Mayor Sustarsic Council Members: Moore, Landau, Kalmick, Steele Absent: None City Staff: Nicholas Ghirelli, City Attorney Patrick Gallegos, Interim City Manager Alexa Smittle, Director of Community Development Iris Lee, Director of Public Works Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. Speakers: None. Mayor Sustarsic closed oral communications. CLOSED SESSION A. Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): 1 potential case No reportable action was taken during the closed session. ADJOURNMENT Mayor Sustarsic adjourned the Closed Session meeting at 7:05 p.m. Gloria D. Harper, City Clerk City of Seal Beach Approved: Schelly Sustarsic, Mayor Attested: Gloria D. Harper, City Clerk Agenda Item C AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Second Reading and Adoption of Ordinance 1716 Adopting Zone Text Amendment 24-03 ________________________________________________________________ SUMMARY OF REQUEST: That the City Council conduct second reading, by title only, and adopt Ordinance 1716 titled "an Ordinance of the City of Seal Beach amending portions of Title 11 of the Seal Beach Municipal Code pertaining to administrative review of modifications to nonconforming residential structures, administrative review of reasonable accommodation requests, modification of residential front yard permeable surface requirements, and updates to the accessory dwelling unit standards pursuant to Senate Bill 1211 and Assembly Bill 2533 (statutes of 2024), and finding the Ordinance to be exempt from the California Environmental Quality Act.” BACKGROUND AND ANALYSIS: At its meeting on November 12, 2024, the City Council approved the introduction of Ordinance 1716, “an Ordinance of the City of Seal Beach City Council amending portions of Title 11 of the Seal Beach Municipal Code pertaining to administrative review of modifications to nonconforming residential structures, administrative review of reasonable accommodation requests, modification of residential front yard permeable surface requirements, and updates to the accessory dwelling unit standards pursuant to Senate Bill 1211 and Assembly Bill 2533 (statutes of 2024), and finding the Ordinance to be exempt from the California Environmental Quality Act.” This item is to conduct a second reading and adopt Ordinance 1716 in compliance with State law and the City Charter requiring that ordinances be adopted at least five (5) days after introduction at a regular or adjourned regular meeting. Upon adoption and pursuant to City Charter Section 414, the Ordinance will be published within fifteen (15) days after adoption. Page 2 1 9 4 9 ENVIRONMENTAL IMPACT: Pursuant to the California Environmental Quality Act (CEQA), the Community Development Department has determined that the proposed zone text amendment is exempt from environmental review under the California Environmental Quality Act, (California Public Resources Code §§ 21000, et seq., and the CEQA Guidelines (14 California Code of Regulations §§ 15000, et seq.) under Sections 15061(b)(3), 15282(h), and 15301, as all changes are related to the development standards of single-family residential, multi-family residential, and accessory dwelling units, which are already allowed by-right to be built in applicable residential zones and it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. LEGAL ANALYSIS: The proposed Ordinance has been reviewed as to form. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council conduct second reading, by title only, and adopt Ordinance 1716 titled "an Ordinance of the City of Seal Beach amending portions of Title 11 of the Seal Beach Municipal Code pertaining to administrative review of modifications to nonconforming residential structures, administrative review of reasonable accommodation requests, modification of residential front yard permeable surface requirements, and updates to the accessory dwelling unit standards pursuant to Senate Bill 1211 and Assembly Bill 2533 (statutes of 2024), and finding the Ordinance to be exempt from the California Environmental Quality Act.” SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Patrick Gallegos Gloria D. Harper, City Clerk Patrick Gallegos, Interim City Manager Prepared by: Brandon DeCriscio, Deputy City Clerk Page 3 1 9 4 9 ATTACHMENTS: A. Ordinance 1716 1 9 6 1 2 ORDINANCE 1716 AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING PORTIONS OF TITLE 11 OF THE SEAL BEACH MUNICIPAL CODE PERTAINING TO ADMINISTRATIVE REVIEW OF MODIFICATIONS TO NONCONFORMING RESIDENTIAL STRUCTURES, ADMINISTRATIVE REVIEW OF REASONABLE ACCOMMODATION REQUESTS, MODIFICATION OF RESIDENTIAL FRONT YARD PERMEABLE SURFACE REQUIREMENTS, AND UPDATES TO THE ACCESSORY DWELLING UNIT STANDARDS PURSUANT TO SENATE BILL 1211 AND ASSEMBLY BILL 2533 (STATUTES OF 2024), AND FINDING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section 1.Recitals. A. Seal Beach Municipal Code (SBMC) Chapter 11.4.40 (Nonconforming Uses, Structures, and Lots) sets forth the process to make changes to nonconforming uses and structures. Zone Text Amendment 24-03 proposes to eliminate the requirement of a Conditional Use Permit or Minor Use Permit to make changes to residential structures, when all proposed additions or expansions comply with the Zoning Code, and instead provide for administrative review by staff. Historically, there have not been denials or requests for modifications by the Planning Commission to additions to nonconforming residential structure projects when all new construction complies with the Zoning Code. Subsection 11.2.05.015.A.7.g. (Residential District Development Standards – Standards for Surfside General Requirements – Nonconforming building expansions) would need the same amendment for the same purpose for residential properties in Surfside. Additionally, a new section is proposed for the Nonconforming Chapter, Section 11.4.40.075 (Replacement of Residential Structures Nonconforming Due to Density). As a result of SB 330 (The Housing Crisis Act of 2019), cities are not allowed to permit development activity that results in a reduction of housing units. Several multi-family properties in Old Town are nonconforming due to density, and several of these units are aging. The only way to replace these units by the standards of the Municipal Code would be to reduce the number of units to come into compliance with density requirements, which SB 330 prevents. This additionally section would allow property owners to replace older housing stock with an equivalent number of units. B. SBMC Chapter 11.5.30 (Reasonable Accommodations) sets forth the process to allow, in accordance with federal and state fair housing laws, for reasonable accommodations in the City’s zoning and land use regulations, policies, and 2 9 6 1 2 practices when needed to provide an individual with a disability an equal opportunity to use and enjoy a dwelling. The amendment is necessary because if the applicant presents the appropriate applicable documentation required, then the City must comply in providing the reasonable accommodation, so discretion is restricted, and accordingly it would be more appropriate to process the request on the Director level than have the applicant appear before a public hearing. Amendment to Chapter 11.5.30 will also implement part of the City’s workplan included in the Housing Element, which requires the City to support efforts in furtherance of fair housing laws and specifically to streamline the reasonable accommodation process for applicants. C. SBMC Section, 11.2.05.015 (Residential District – Development Standards) establishes the development standards required for uses in residential zones. Amendment to this section is necessary because the permeable surface requirement for the front yard setback has contradictory language in that it states that 50% can be paved, but 60% must have a permeable surface. The code would be amended to reduce the permeable surface requirement to 50% to correct that contradiction. Additionally, Section 11.4.05.100 (Residential Accessory Uses, Structures, and Vehicle Parking) would be amended for the same purpose under subsection (E) Driveways, Walkways, and Patios. D. SBMC Section 11.4.05.115 (Accessory Dwelling Units) sets forth the standards required for ADUs and JADUs. Amendment to this section is necessary due to the 2024 enactment of Senate Bill 1211 (SB 1211) and Assembly Bill 2533 (AB 2533). SB 1211 includes additional prohibitions on requiring replacement when parking is lost in the conjunction with the development of an ADU, further restricts the requirement of development or design standards that do not exist in State law, defines “livable space” and allows up to 8 detached ADUs, instead of 2, to be created on a lot with an existing multifamily dwelling, provided that the number of ADUs does not exceed the number of existing units. AB 2533 requires unpermitted second units constructed prior to January 1, 2020 to be permitted. This was previously required for second units constructed prior to January 1, 2018. AB 2533 would also authorize the City, upon receiving an application for a permit for a previously unpermitted ADU or JADU to inspect the unit for compliance with health and safety standards and provide recommendations to bring the ADU or JADU into compliance with those standards The City would be required to approve necessary permits to correct noncompliance with health and safety standards. Section 2.Procedural Findings. The City Council of the City of Seal Beach does hereby find, determine, and declare that: A. On October 21, 2024, the Planning Commission considered this Ordinance at a duly noticed public hearing, as prescribed by law, at which time City staff and interested persons had an opportunity to and did testify either in support of or against this matter. B. At the conclusion of the Planning Commission hearing and after due consideration of the testimony, the Planning Commission adopted Resolution No. 24-15, recommending approval of the Ordinance by the City Council. 3 9 6 1 2 C. The City Council, at a regular meeting, considered the Ordinance on November 12, 2024, at a duly noticed public hearing, as prescribed by law, at which time City staff and interested persons had an opportunity to and did testify either in support of or against this matter. D. Following the public hearing, the City Council considered the entire record of information received at the public hearings before the Planning Commission and City Council. Section 3.California Environmental Quality Act Exemption. The City Council hereby determines that this Ordinance is exempt from environmental review under the California Environmental Quality Act, (California Public Resources Code § 21000, et seq., (“CEQA”) and the CEQA Guidelines (14 California Code of Regulations § 15000, et seq.) under Guidelines Sections 15061(b)(3), 15282(h), and 15301, as all changes are related to the development standards of single-family residential, multi-family residential, and accessory dwelling units, which are already allowed by-right to be built in applicable residential zones and it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Section 4.Consistency Findings. In approving the proposed Zoning Code amendment, the City Council hereby makes the following findings that the Ordinance is consistent with the General Plan: A. The proposed Code Amendment is consistent with the following General Plan Land Use Element Goal and Policy: 1. Features of the Community: A goal of the City is to maintain and promote those social and physical qualities that enhance the character of the community and the environment in which we live. B. The proposed amendments are also consistent with Chapter 3 of the Coastal Act, will not have an impact either individually or cumulatively on coastal resources, and do not involve any change in existing or proposed use of land or water. Section 5.Section 11.4.40.010 (Maintenance and Repair of Nonconforming Structures) of Chapter 11.4.40 (Nonconforming Uses, Structures, and Lots) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “11.4.40.010 Maintenance Repair and Alteration of Nonconforming Structures. A. Continuation of Nonconforming Structures. A lawful nonconforming structure may be used, occupied and maintained in its current size and configuration. B. Maintenance, Repairs, and Interior Alterations. An owner may perform maintenance, repairs and interior alterations to structures that are lawfully nonconforming or contain lawful nonconforming uses, provided the structure is not enlarged or the 4 9 6 1 2 nonconforming use is not expanded except as otherwise authorized by this chapter. An owner shall apply for and obtain a building permit for all maintenance, repairs or alterations as required by the Building Code chapter of the municipal code. 1. For construction, maintenance, repairs or alterations of accessory dwelling units and junior accessory dwelling units on property with any nonconforming zoning condition, see section 11.4.05.115 of chapter 11.4.05 of this title. As used in this paragraph 1 only, the phrase “nonconforming zoning condition” has the meaning set forth in section 11.4.05.115.B.10 of chapter 11.4.05. 2. For maintenance, repairs and interior alterations of nonconforming historic buildings, see Section 11.4.40.055 of this chapter. Section 6.Section 11.4.40.015 (Minor Improvements to Nonconforming Residential Structures) of Chapter 11.4.40 (Nonconforming Uses, Structures, and Lots) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “11.4.40.015 Minor Improvements to Nonconforming Residential Structures. A. Minor Improvements Requiring Only a Building Permit. 1. Skylights. 2. Solar systems. 3. Windows. 4. Decorative exterior improvements. 5. Utilities. 6. Other similar minor structural improvements as determined by the director. B. Minor Improvements Requiring Director’s Review. 1. Open roof decks. 2. Balconies and porches (not enclosed). 3. Roof additions over balconies and porches. 4. Roof eaves projecting 5 feet into the required rear yard setback in the RLD-9 District, along Ocean Avenue between First Street and Eighth Street. 5. Exterior doors. 5 9 6 1 2 6. Garages, carports, and additional covered parking spaces. 7. Interior wall modifications and remodeling which involves removal of or structural alteration to less than 25% of the structure’s interior walls. Such interior wall modifications or remodeling may increase the number of bathrooms provided that the number does not exceed the following bedroom/bathroom ratio: one bath for each bedroom plus an additional half-bath. The number of bedrooms shall not be increased if the subject property is nonconforming due to density or parking. 8. Reduction in the number of units involving removal or structural alteration to less than 50% of the structure’s interior walls. 9. Other similar minor improvements, as determined by the director. Section 7.Section 11.4.40.020 (Structural Alteration or Additions to Nonconforming Residences Require a Conditional Use Permit (All Residential Districts)) of Chapter 11.4.40 (Nonconforming Uses, Structures, and Lots) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “11.4.40.020 Structural Alterations or Additions to Nonconforming Residential Structures (All Residential Districts). A. Alterations and Additions permitted through a Director’s Review. Except as otherwise provided in paragraphs 1 and 2 of this subsection, single-family and multi-family residential structures that are lawfully nonconforming only with respect to height, setbacks, density, and parking may be altered, renovated, and enlarged provided that the alteration, renovation or enlargement does not increase or intensify the nonconformity and the alteration, renovation or enlargement is consistent with current development standards including but not limited to height, setbacks and lot coverage. 1. For alterations and additions to construct an accessory dwelling unit or junior accessory dwelling unit in residential structures with any nonconforming zoning condition, see section 11.4.40.010.B.1 of this chapter and section 11.4.05.115 of chapter 11.4.05. As used in this paragraph 1 only, the phrase “nonconforming zoning condition” has the meaning set forth in section 11.4.05.115.B.10 of chapter 11.4.05. 2. For maintenance, repairs and interior alterations of nonconforming historic buildings, see sections 11.4.40.010.B.2 and 11.4.40.055 of this chapter. Section 8.Section 11.4.40.030 (Nonconforming Multi-Unit Residential and Nonresidential Structures May Not be Structurally Altered or Expanded; and Exceptions) of Chapter 11.4.40 (Nonconforming Uses, Structures, and Lots) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: 6 9 6 1 2 “11.4.40.030 Nonconforming Nonresidential Structures May Not Be Structurally Altered or Expanded; and Exceptions. A. Nonresidential Property Exceptions. 1. Substandard Yards or Open Space. A structure that is nonconforming only because of substandard yards or open space may be altered or expanded; provided that any alteration or expansion does not further reduce the size of required yards and open space. 2. Commercial Centers over 20 Acres—Inadequate Landscaping. A commercial center over 20 acres in size that is nonconforming only because of inadequate landscaping may be altered or expanded: a. Upon receiving a building permit if 7% or more of its total lot area is landscaped. b. Upon the approval of a conditional use permit pursuant to Chapter 11.5.20: Development Permits, if less than 7% of its total lot area is landscaped. Provided the center remains in compliance with the terms and conditions of the conditional use permit, a building permit may be issued for subsequent alterations and expansions. i. Landscape Program. All applications for a conditional use permit shall be accompanied by a: proposed landscape program showing landscaping proposed for a minimum of 7% of the total lot area; schedule; and site plan of the center, drawn to scale and indicating, but not limited to, the following information: (a) Lot dimensions; (b) Location, size and total square footage of all structures; (c) Location and number of parking spaces; (d) Pedestrian, vehicular and service access; (e) Common areas; and (f) Location and square footage of existing landscaping. ii. Approval of Landscape Program. The planning commission shall approve a proposed landscape program if such program provides for the installation of the required amount of landscaping within a reasonable period of time, taking into consideration, among other factors, the total lot area of the center, the number of businesses within the center, the existing 7 9 6 1 2 amount of landscaping, and the cost to comply with the landscaping required. 3. Main Street Specific Plan District. A structure located within the Main Street Specific Plan District that is nonconforming only because of inadequate parking may be altered or expanded, and/or its use expanded or changed, provided: a. The alteration, expansion or change does not further reduce the existing number of parking spaces, and b. The owner supplies additional parking spaces to meet the parking requirements for the difference in area between the existing building and the altered or expanded building, and c. The owner supplies additional parking spaces to meet any increase in parking requirements for the expanded or new use. If a property owner cannot meet off-street parking requirements, the owner may pay an in-lieu fee pursuant to the provisions of Section 11.4.20.020.D: Main Street Specific Plan District In-Lieu Parking Program.” Section 9.Subsection 11.4.40.050.B (Residential Structure – Damage Greater than 50%) of Section 11.4.40.050 (Restoration of Damaged Nonconforming Structures) of Chapter 11.4.40 (Nonconforming Uses, Structures, and Lots) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “B. Residential Structure—Damage Greater than 50%. A nonconforming residential building damaged to the extent of more than 50% of its replacement cost by fire, explosion or other occurrence may be restored and reoccupied in the same residential manner that lawfully existed prior to the occurrence, as follows: 1. Reconstruction Pursuant to Building Permit. The director may issue a building permit to reconstruct the damaged structure, provided: a. The owner provides the applicable minimum number of standard, open and accessible covered parking spaces. b. The property meets or exceeds minimum setbacks required by this title. c. The reconstructed building does not exceed the maximum height standards of this title. d. The number of units on the property shall not exceed the number of units legally existing at the time of the occurrence, or one unit for each 950 square feet of lot area, whichever is less. For the purpose of calculating density, all fractions of units shall be rounded to the next highest whole number. 8 9 6 1 2 2. Reconstruction Pursuant to Minor Use Permit. If the owner is unable to provide the minimum number of required parking spaces, the planning commission may issue a minor use permit pursuant to Chapter 11.5.20: Development Permits, to reconstruct the damaged structure, provided: a. The owner provides a minimum of one standard, open and accessible covered parking space for each unit. Tandem spaces existing at the time of the occurrence shall be restored, but interior spaces shall not be counted in satisfying the requirement of one space per unit. b. The property meets or exceeds minimum setbacks required by this title. c. The reconstructed structure does not exceed the maximum height standards of this title. d. The number of units on the property shall not exceed the number of units legally existing at the time of the occurrence, or one unit for each 950 square feet of lot area, whichever is less. For the purpose of calculating density, all fractions of units shall be rounded to the next highest whole number. 3. General Provisions. In addition to the specific provisions of paragraphs 1 and 2, above: a. There shall be no increase in the habitable area, unless this title allows additional habitable space. b. There shall be no increase in the number of units, unless this title allows additional units. c. No units measuring less than 500 square feet may be restored unless the director makes the following findings: i. All units and rooms meet the minimums established for residential occupancies under the California Building Code. ii. All feasible area has been utilized to enlarge substandard units, given the availability and location of space on the site, or the constraints imposed by parking requirements and the existing sound primary structure. iii. In the case of a junior accessory dwelling unit, prior to the event causing the damage, the subject unit complied with the minimum and maximum size requirements of section 11.4..05.115 of this code. d. Any entitlement conferred by a permit issued pursuant to this section shall expire if reconstruction does not commence within one year from the date of issuance, in which case the nonconforming structure or use shall be considered abandoned and subject to Section 11.4.40.045: Abandonment of 9 9 6 1 2 Nonconforming Uses; Conditional Use Permit for Reestablishment of Abandoned Uses. e. The building official shall determine replacement cost, using valuation methods adopted by the building official. If the property owner disputes the building official’s determination, the owner may, at its own cost, hire a licensed appraiser, approved by the building official, to determine replacement cost. Section 10.Section 11.4.40.075 (Replacement of Residential Structures Nonconforming Due to Density) is hereby added to Chapter 11.4.40 (Nonconforming Uses, Structures, and Lots) of Title 11 (Zoning) of the Seal Beach Municipal Code to read as follows: “11.4.40.075 Replacement of Residential Structures Nonconforming Due to Density. A. Replacement of a residential structure nonconforming due to density through a director’s review. Except as otherwise provided in subsection B of this section, residential structures nonconforming due to density may be demolished and replaced by a residential structure(s) with the equivalent number of dwelling units and with the same number and type of parking spaces that were provided prior to the demolition. Nonconforming aspects of the original structure, such as height and setbacks, may be reestablished only if necessary to provide the equivalent number of dwelling units and parking spaces that were previously provided, as determined by the director. However, any nonconformity that was not present prior to the demolition shall not be permitted. Any expansion beyond what was originally existing shall be consistent with current development standards including, but not limited to height, setbacks, and lot coverage. B. Replacement of vacant or occupied protected units in residential structure nonconforming due to density through a director’s review. If a proposed project will require the demolition of one or more occupied or vacant protected units (as defined in Government Code Section 66300.5), the proposed demolition and replacement of protected units will be reviewed in accordance with Government Code Sections 66300.5 and 66300.6, as may be amended from time to time Section 11.Subsection 11.2.05.015.A.7.g. (Standards for Surfside General Requirements – Nonconforming Building Expansions) of Section 11.2.05.015 (Development Standards) of Chapter 11.2.05 (Residential Districts) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “g. Nonconforming building expansions. General renovation and structural additions to nonconforming buildings may be approved pursuant to Chapter 11.4.40: Nonconforming Uses, Structures, and Lots, provided: i. No bedrooms or other living quarters are being added; 10 9 6 1 2 ii. The only rooms being added are bathrooms, storage closets, closets or enlargements of existing rooms; iii. The building provides at least one conforming parking space. Section 12.Section 11.5.30.010 (Review Authority) of Chapter 11.5.30 (Reasonable Accommodations) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “11.5.30.010 Review Authority. The director is designated to approve, conditionally approve, or deny all applications for a reasonable accommodation.” Section 13.Subsection 11.5.30.020.A (Planning Commission to Decide) of Section 11.5.30.020 (Decision) of Chapter 11.5.30 (Reasonable Accommodations) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “A. Director to Decide. The director shall issue a written determination to approve, conditionally approve, or deny a request for reasonable accommodation, and the modification or revocation thereof in compliance with subsection B of this section. The reasonable accommodation request shall be subject to appeal procedures prescribed in Section 11.5.25.025. Section 14.Table 11.2.05.015 (Development Standards for Residential Districts) of Section 11.2.05.015 (Development Standards) of Chapter 11.2.05 (Residential Districts) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: Table 11.2.05.015 Development Standards For Residential Districts RLD-9 RLD-15 RMD- 18 RHD- 20 RHD- 33 RHD- 46 Supplemental Regulations Density/Intensity of Use - Lot Dimensions Maximum Density 1 unit per 5,000 sq. ft. of lot area, plus an "Accessory Dwelling Unit" 1 unit per 3,000 sq. ft. of lot area, plus an "Accessory Dwelling Unit" 1 unit per 2,500 sq. ft. of lot area 1 unit per 2,178 sq. ft. of lot area 1 unit per 1,350 sq. ft. of lot area 1 unit per 960 sq. ft. of lot area See Section 11.4.05.115 for Accessory Dwelling Unit standards. See subsection A for Surfside Standards 11 9 6 1 2 Table 11.2.05.015 Development Standards For Residential Districts RLD-9 RLD-15 RMD- 18 RHD- 20 RHD- 33 RHD- 46 Supplemental Regulations Maximum Density with State Affordable Housing Bonus (du/ac) See Chapter 11.4.55: Affordable Housing Bonus Minimum Lot Area (sq. ft.) Interior Lots 5,000 3,000 5,000 2,500 5,000 5,000 (W) See Section 11.4.05.115 for Accessory Dwelling Unit standards. Corner Lots 5,500 3,000 5,500 2,500 5,500 5,500 (W) See Section 11.4.05.115 for Accessory Dwelling Unit standards. Nonresidential Uses 10,000 10,000 10,000 10,000 10,000 10,000 Minimum Lot Size (ft.) Interior Lots 50 x 100 30 x 80 50 x 100 25 x 100 50 x 100 50 x 100 (W) Corner Lots 55 x 100 35 x 80 50 x 100 25 x 100 55 x 100 55 x 100 (W) Minimum Floor Area (sq. ft.) Primary Dwelling Unit 1,200 1,200(E)950 950 950 950 Junior Accessory Dwelling Unit 150 150 150 150 150 150 1-Bedroom Accessory Dwelling Unit 400 400 400 400 400 400 2+-Bedroom Accessory Dwelling Unit 600 600 600 600 600 600 Maximum Floor Area for Accessory Dwelling Units (sq. ft.) Junior Accessory Dwelling Unit 500 500 500 500 500 500 Detached Accessory Dwelling Unit 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 12 9 6 1 2 Table 11.2.05.015 Development Standards For Residential Districts RLD-9 RLD- 15 RMD-18 RHD-20 RHD-33 RHD-46 Supplemental Regulations Attached Accessory Dwelling Unit 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) 1,200 (L-4) L-3 Maximum Lot Coverage (%) (B)67 50 75(B)60 80 (B)(W) Substandard Lot Standards Yes Yes Yes Yes Yes Yes (C) Building Form and Location Minimum Yards (ft.) Front - Minimum (D)(E)Average 12; minimum 6 Average 12; minimum 6 18 18 (D)(E)(W); L-2 Interior Side - Minimum (A)(D)(E)10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum 10% of lot width; 3 ft. minimum; 10 ft. maximum (A)(D)(E)(W) Corner Side - Minimum 15% of lot width; 10 ft. maximum (E)15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum 15% of lot width; 10 ft. maximum (E)(W) Rear 10 (E)5 ft.; but when abutting an alley 24 ft. minus width of the alley 24 ft. minus width of the alley 24 ft. minus width of the alley (E)(W) Main Building Envelope Flood Zone Heights Yes Yes Yes Yes Yes Yes (F) Maximum Height (ft.) 25(A)(G) (not to 25(E)(G)25 (not to 35 35 (A)(G)(E)(W) 13 9 6 1 2 Table 11.2.05.015 Development Standards For Residential Districts RLD-9 RLD- 15 RMD- 18 RHD- 20 RHD- 33 RHD- 46 Supplemental Regulations exceed 2 stories) exceed 2 stories) Maximum Height of Downslope Skirt Walls (ft.) 6 6 6 6 6 6 (H) Projections Yes Yes(E)Yes Yes Yes Yes (I)(E)(W) Minimum Distance Between Buildings on the Same Lot (ft.) 6 6 6 6 6 10-20 (J) Minimum Court Dimensions (ft.) ————15 15" Building Design Exterior Stairways Prohibited Yes Yes Yes Yes No No L-1 Porches Yes ——Yes ——(K) Vehicle Accommodation Off-Street Parking and Loading See Chapter 11.4.20: Off-Street Parking and Loading Maximum Number of Curb Cuts for Driveway 1 (L)1 1 1 1 1 (L) Maximum Width of Driveway (ft.) 18 —————(M) Limitations on Parking and Garage Frontage Yes Yes Yes Yes Yes Yes (N) Landscaping and Open Space Minimum Permeable Surface/Maximum Paving in Street-Facing Yards (%) 50/50 50/50 50/50 50/50 50/50 50/50 (O) Minimum Site Area Devoted to Landscaping (%) 25 15 (E)15 Yes 15 15 (E), (P); See also Section 11.4.30.015 Planting Required on Downslope Lots Yes Yes Yes Yes Yes Yes (Q) Pedestrian Walkways ——Yes Yes Yes Yes (R) 14 9 6 1 2 Table 11.2.05.015 Development Standards For Residential Districts RLD- 9 RLD- 15 RMD- 18 RHD- 20 RHD- 33 RHD- 46 Supplemental Regulations Other Development Standards Accessory Structures Yes Yes Yes Yes Yes Yes See Section 11.4.05.100; (W) 2-Story Cabanas/Manufactured Homes ————Yes —(S) Roof Decks Yes —Yes Yes Yes Yes (T) Solar Access Yes Yes Yes Yes Yes Yes See Section 11.4.10.045 Walls and Fences Yes Yes Yes Yes Yes Yes See Chapter 11.4.15 General Site Standards See Chapter 11.4.10: General Site Standards Landscaping and Buffer Yards See Chapter 11.4.30: Landscaping and Buffer Yards Signs See Chapter 11.4.25: Sign Regulations Nonconforming Structures See Chapter 11.4.40: Nonconforming Uses, Structures, and Lots Coastal Development Permit See Chapter 11.4.35: Coastal Development Permit Reasonable Accommodations See Chapter 11.5.30: Reasonable Accommodations Notes: L-1: Exterior stairways providing access from the ground level and/or the first floor to the second floor or above are prohibited when such stairways are not specifically required by the California Building Code. Exterior stairways may be permitted through the building permit process in the RLD-9 district on properties with a second story kitchen existing as of March 9, 1998. In such a case, a covenant shall be recorded on the title of the property stipulating the property is to be used only as a single-unit dwelling. Exception #1: Exterior stairways may be permitted on single-unit dwellings located within identified flood zones upon approval of an administrative use permit pursuant to Chapter 11.5.20: Development Permits. Exception #2: Exterior stairways may be permitted on a residential lot to provide ingress and egress to an accessory dwelling unit or junior accessory dwelling unit constructed in accordance with Section 11.4.05.115 of this title. L-2: Refer to Appendix A - City Council Approved Blanket Setback Variances. L-3: As used in this section, "living area" means the interior habitable area of a dwelling unit including basements and attics but does not include a garage or any accessory structure. 15 9 6 1 2 Notes: L-4: An ADU with a gross floor area between 1,001 and 1,200 square feet is allowed provided a minimum of one parking space is provided for the ADU. Section 15.Subsection 11.2.05.015.O (Minimum Permeable Surfaces) of Section 11.2.05.015 (Development Standards) of Chapter 11.2.05 (Residential Districts) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “O. Minimum Permeable Surface—Maximum Paving in Street Facing Yards. A minimum of 50% of the required street facing yards shall have a permeable surface that permits water absorption directly into the soil. No more than 50% of the required front or corner side yard may be covered with a paved surface.” Section 16.Subsection 11.4.05.100.E (Driveways, Walkways, and Patios) of Section 11.4.04.100 (Residential Accessory Uses, Structures, and Vehicle Parking) of Chapter 11.4.05 (Standards for Specific Uses) of Title 11 (Zoning) is hereby amended in its entirety to read as follows: “E. Driveways, Walkways, and Patios. Driveways, walkways, patio slabs, and other areas paved with concrete, asphalt or similar materials, and wooden decks, may be placed in up to 50% of the area within any required setback, provided that the structures do not exceed a height of 12 inches. This requirement does not exclude the use of steps providing access between areas of different elevation on the same site. At least 50% of all setback areas shall consist of permeable surface. Section 17.Section 11.4.05.115 (Accessory Dwelling Units) of Chapter 11.4.05 (Standards for Specific Uses) of Part IV (Regulations Applying in Some or All Districts) of Title 11 (Zoning) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “Section 11.4.05.115. - Accessory dwelling units. A. Purpose and applicability. The purpose of this chapter is to implement the requirements of Government Code Sections 66310 through 66342 to allow accessory dwelling units and junior accessory dwelling units in a manner that encourages their development but simultaneously minimizes impacts on traffic, parking, density, and other areas where the City is still permitted to exercise local control. B. Definitions. For the purposes of this section, the following definitions apply. Terms and phrases not defined in this section shall have the meaning ascribed to them in Section 11.6.05.010. In the event of any conflict or inconsistency between these 16 9 6 1 2 definitions and the definitions contained in Section 11.6.05.010 or any other provisions of this code, the following definitions shall take precedence. “Accessory dwelling unit or ADU means an attached or a detached residential dwelling unit which provides complete independent living facilities for one (1) or more persons. It shall include permanent provisions for living, sleeping, eating, cooking (including a kitchen as defined herein), and sanitation on the same parcel as the primary dwelling is situated. An accessory dwelling unit also includes efficiency units, as defined in Section 17958.1 of Health and Safety Code, and manufactured homes, as defined in Section 18007 of the Health and Safety Code. “Attached accessory dwelling unit” or “attached ADU” means an ADU that is constructed within or attached to an existing or proposed primary dwelling and shares a common wall with the primary dwelling. “Detached accessory dwelling unit” or “detached ADU” means an ADU that is constructed as a separate structure from an existing or proposed primary dwelling, which does not share any walls with the primary dwelling. “Existing structure” means an existing single-family dwelling, multifamily dwelling, or accessory structure that can be safely converted into habitable space under the California Building Standards Code, as amended by the City, and other applicable law. “High Quality Transit Corridor” means a “high-quality transit corridor” as defined in Section 21155 of the Public Resources Code as the same may be amended from time to time. “Junior Accessory Dwelling Unit” or “JADU” has the same meaning ascribed in Government Code Section 66313, as the same may be amended from time to time. “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. "Major Transit Stop” means a “major transit stop” as defined in Section 21155 of the Public Resources Code as the same may be amended from time to time. “Mixed use,” for the purposes of this section only, means property within a mixed use zone identified within Chapter 11.2.10 of the Municipal Code where residential uses are permitted by-right or by conditional use. “Multifamily Dwelling,” for purposes of this section only, means a property containing two (2) or more attached dwelling units. Multiple separate single-family residential structures on the same lot do not qualify as a multifamily dwelling. Single-family dwellings with an ADU, JADU, or both do not qualify as a multifamily dwelling. 17 9 6 1 2 “Nonconforming zoning condition,” for purposes of this section only, means a physical improvement on a property that does not conform with current zoning standards. “Primary Dwelling,” for purposes of this section only, means the existing or proposed single-family dwelling or multifamily dwelling on the lot where an ADU would be located. “Public transit,” has the meaning ascribed in Government Code Section 66313(l), as the same may be amended from time to time. “SB 9” or “Senate Bill 9” means Government Code Section 65852.21 and 66411.7(c), as adopted by Senate Bill 9, Chapter 162, Stat. 2021, as the same may be amended from time to time. Statewide Exemption ADU” means an ADU allowed by right pursuant to Government Code Section 66323. C. Permits Required. In addition to other requirements of this section, all accessory dwelling units and junior accessory dwelling units shall be subject to the following ministerial requirements. 1) Zoning Conformance Review. Accessory dwelling units and junior accessory dwelling units consistent with the requirements of this section are allowed by- right on a lot that is zoned to allow single family use or multifamily residential use. A JADU shall only be allowed within an existing or proposed single family dwelling. An application for zoning conformance review shall be submitted to the Community Development Department on the City-approved form concurrently with the building permit application, for confirmation of single- family or multifamily zoning by the director or designee. 2) Building Permit. A building permit application is required to be filed with the Building and Safety Division. Approval of a building permit is required for construction of an ADU, and all accessory dwelling units and junior accessory dwelling units shall comply with all applicable Building Code requirements. 3) Certificate of Occupancy. A certificate of occupancy shall not be issued for an accessory dwelling unit before the issuance of a certificate of occupancy for the primary dwelling. 4) Nonconforming Zoning Code Conditions, Building Code Violations and Unpermitted Structures. a. Except as otherwise required by this Section, all construction, structural alterations or additions made to create an ADU or JADU shall comply with current development standards and building, electrical, fire, plumbing and mechanical codes. b. An ADU or JADU application shall not be denied due to the correction of nonconforming zoning conditions, building code violations, or unpermitted 18 9 6 1 2 structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit. c. Unpermitted ADUs constructed before 2020. i. As required by State law, the City may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if denial is based on either of the following grounds: (A)The ADU violates applicable building standards, or (B)The ADU does not comply with the state ADU law (Government Code sections 66310 through 66342) or this Section. ii. Exceptions: (A)Notwithstanding subsection (c)(i) above, the City may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if the City makes a finding that correcting a violation is necessary to protect the health and safety of the public or of occupants of the structure. (B)Subsection (c)(i) above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code Section 17920.3. d. Subject to subdivision (c), upon receiving an application to permit a previously unpermitted accessory dwelling unit or junior accessory dwelling unit constructed before January 1, 2020, an inspector from the local agency may inspect the unit for compliance with health and safety standards and provide recommendations to comply with health and safety standards necessary to obtain a permit. If the inspector finds noncompliance with health and safety standards, the local agency shall not penalize an applicant for having the unpermitted accessory dwelling unit or junior accessory dwelling unit and shall approve necessary permits to correct noncompliance with health and safety standards. e. Notwithstanding any other provision of this Section, Subsections (a) through (d) shall not operate to legalize any nonconforming conditions, Building Code violations or unpermitted structures, and shall not prevent the City from requiring compliance with all applicable Code provisions when reviewing an application related to a primary dwelling unit or other accessory structure that does not include an ADU or JADU. D. Statewide Exemption ADUs. 19 9 6 1 2 1) Pursuant to Government Code Section 66323, upon Zoning Conformance Review, the City shall ministerially approve an application for a building permit within a residential or mixed use zone, to create any of the following: a) ADU and JADU within Single-Family Dwelling and ADUs within Existing Accessory Structures. One ADU and one JADU per lot with a proposed or existing single-family dwelling if all of the following apply: i. The JADU is within the proposed space of a proposed single-family dwelling or existing space of a single-family dwelling (including any attached garage). ii. The ADU or JADU is within the proposed space of a proposed single- family dwelling or existing space of a single-family dwelling (including any attached garage) or accessory structure, and may include an expansion of not more than 150 square feet beyond the same physical dimensions of the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress. ADUs constructed within the footprint of a proposed space of a single-family dwelling, existing space of a single-family dwelling (including any attached garage) or existing space of an accessory structure shall not be subject to a maximum square-footage of living area. iii. The ADU has an exterior access from the proposed or existing single-family dwelling. Interior access between the primary unit and the ADU shall be prohibited. iv. The side and rear setbacks are sufficient for fire and safety. v. The JADU complies with the requirements of Article 3 of Chapter 13 of Division 1 of Title 7 of the Government Code (commencing with Government Code Section 66333) and with the requirements set forth in subsection (F) of this section. b) Detached new construction ADU for Single-Family Dwelling. One detached, new construction ADU for a lot with a proposed or existing single-family dwelling if all of the following apply. The ADU may be combined with a JADU described in subsection (D)(1)(a) of this section. i. The ADU shall be no more than 800 square feet in size. ii. The ADU shall not exceed a height limit of 16 feet, or a height of 18 feet for an ADU within one-half mile walking distance of a “major transit stop” or “high-quality transit corridor”. 20 9 6 1 2 iii. The ADU shall be setback a minimum of four feet from side and rear lot lines. However, in districts which allow lesser side setbacks, the lesser shall apply. c) ADUs on Parcel with Existing or Proposed Multifamily Dwelling. A property owner may develop any of the following ADUs on a lot: i.ADU within Non-Livable Space in Existing Multifamily Dwelling. At least one ADU within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to: storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. If requested, multiple ADUs shall be allowed, within non-livable space, but the total number of ADUs allowed shall not exceed 25 percent of the existing multifamily dwelling units in the structure. ii.Detached New Construction ADUs for Existing or Proposed Multifamily Dwelling. Not more than eight detached ADUs located on a lot that has an existing multifamily dwelling. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot. These ADUs are subject to a height limit of 16 feet and minimum four-foot rear yard and side setbacks. However, in districts which allow lesser side setbacks, the lesser setback shall apply. For lots that are within one- half mile walking distance of a “major transit stop” or a “high-quality transit corridor”, or for lots that have a multifamily dwelling that is also multistory, the detached ADU is subject to a height limit of 18 feet. Multiple separate single-family structures on the same lot do not qualify as a multi-family dwelling. 2) Lot Split Pursuant to Senate Bill 9. In the event that a property owner in a single-family zone obtains approval of a lot split pursuant to Senate Bill 9, any existing or proposed ADU or JADU shall count toward the maximum two units allowed on each lot resulting from the lot split. E. ADUs not subject to Statewide Exemption. 1) Pursuant to Government Code Sections 66313 through 66322, approval of Zoning Conformance Review and a building permit shall be required in accordance with this subsection. 2) All ADUs shall satisfy the requirements of Title 8, Building and Construction, of the Seal Beach Municipal Code. A building permit application is required to be filed with the Building Division and approved by the Building Official or designee. If demolition of a detached garage is proposed as part of the construction of an ADU, a demolition permit application shall be filed 21 9 6 1 2 concurrently with the Building Division and approved by the Building Official or designee at the same time as the building permit. 3) In accordance with State law, ADUs are an accessory use or an accessory structure to the Primary Dwelling on the lot. ADUs shall not be considered to exceed the allowable density for the lot. 4) The Community Development Director shall ministerially review and approve an application for Zoning Conformance Review of a proposed ADU, provided that the submitted application is complete and demonstrates that the ADU complies with the requirements contained in this chapter and any other applicable law. A public hearing is not required. 5) Accessory dwelling unit applications for Zoning Conformance Review and building permit review subject to ministerial approval shall be processed within the timelines established by California Government Code Section 66317. The City shall approve or deny the Zoning Conformance Review and building permit within 60 days of receiving the application, or as the deadline required by Government Code Section 66317, as the same may be amended from time to time. Any required demolition permit shall be processed within the same 60- day period. Notice of decision on the application shall be mailed to the applicant. The decision of the Community Development Director on Zoning Conformance Review shall be final. The building permit application and any required demolition permit application shall be reviewed in accordance with the Building Code. 6) Where an accessory dwelling unit application for an ADU is submitted with an application for a Primary Dwelling that is subject to discretionary review under Title 9 of the Seal Beach Municipal Code, the accessory dwelling unit application shall be processed in accordance with this section, separately without discretionary review or a public hearing, following action on the portion of the project subject to discretionary review. 7) Lot Split under SB 9. In the event that a property owner in a single-family zone obtains approval of a lot split pursuant to Senate Bill 9, any existing or proposed ADU or JADU shall count toward the maximum two units allowed on each lot resulting from the lot split. F. Standards for ADUs. Except those ADUs approved pursuant to subsection (D)(1) of this section (Statewide Exemption ADUs), ADUs shall comply with the following development standards: 1) Location Restrictions: One ADU shall be allowed on a lot with a proposed or existing Primary Dwelling that is zoned to allow single family or multi-family residential use. 2) Development Standards: 22 9 6 1 2 a) Size restrictions. i. Attached ADU (Existing Primary Dwelling): ADU shall not exceed the lesser of: 1) 850 square feet in gross floor area if it contains one or fewer bedrooms or 2) 1,000 square feet in gross floor area if it contains more than one bedroom. Notwithstanding the above, an ADU with a gross floor area between 1,001 and 1,200 square feet is allowed provided a minimum of one parking space is provided for the ADU. ii. Attached ADU (New Primary Dwelling): ADU shall not exceed 850 square feet in gross floor area if it contains one or fewer bedrooms or 1,000 square feet in gross floor area if more than one bedroom. Notwithstanding the above, an ADU with a gross floor area between 1,001 and 1,200 square feet is allowed provided a minimum of one parking space is provided for the ADU. iii. Detached ADU: ADU shall not exceed 850 square feet in gross floor area if it contains one or fewer bedrooms or 1,000 square feet in gross floor area if more than one bedroom, whichever is less. Notwithstanding the above, an ADU with a gross floor area between 1,001 and 1,200 square feet is allowed provided a minimum of one parking space is provided for the ADU. iv. In no case shall the gross floor area of an ADU be less than that of an “efficiency unit” as defined in Health and Safety Code Section 17958.1. b) Height restrictions. A newly constructed ADU shall not exceed sixteen (16) feet in height, except as provided in subparagraphs (i) through (iv). i. A newly constructed detached ADU shall not exceed eighteen (18) feet in height when the lot is located within one-half mile walking distance of a “major transit stop” or “high-quality transit corridor”, as those terms are defined by State law; and two additional feet shall be allowed if necessary to accommodate a roof pitch in the ADU that is aligned with the roof pitch of the primary dwelling unit. ii. A newly constructed detached ADU shall not exceed eighteen (18) feet in height on a lot with an existing or proposed multistory multifamily dwelling. iii. A newly constructed attached ADU shall not exceed twenty-five (25) feet or the height limit applicable to the primary dwelling, whichever is lower. This clause shall not require the City to allow an accessory dwelling unit to exceed two stories. 23 9 6 1 2 iv. A detached ADU may be constructed above an existing detached accessory structure including a detached garage, subject to the height limits of the underlying zone and the size restrictions in subsection (F)(2)(a)(iii), subject to recordation of a declaration of restrictions, in a form approved by the City Attorney, agreeing to maintain the existing garage as functionally available for parking. c) Setbacks. i. No setback shall be required for an ADU that is within a legally Existing Structure or new ADU that is constructed in the same location and with the same dimensions as a legally Existing Structure. For all other ADUs, the required minimum setback from side and rear lot lines shall be four feet, except in districts which allow lesser side setbacks, in which case the lesser shall apply. ii. An ADU shall comply with all required front yard setbacks otherwise required by the Seal Beach Municipal Code, except where the application of the front setback regulations would not permit construction of an 800 square foot ADU with four-foot side and rear yard setbacks, except in districts that allow lesser side setbacks, in which case the lesser shall apply. In this exception, the ADU may encroach into the front setback only to the extent needed to construct a maximum sized unit of 800 square feet. In the RLD-15 zone, where a second-floor step-back in the front is required given the small lots and reduced setbacks of that zone, in order to maintain the required second-floor step-back and a consistent development pattern in that neighborhood. when an ADU is proposed on the second floor, the ADU shall be developed above the rear portion of the primary structure and the wall of the ADU closest to the rear property line shall be uniform in placement to the rear wall of the primary structure. d) Minimum Distance - Detached ADU. In accordance with Table 11.2.05.05 of Section 11.2.05.015 of this title (Minimum Distance Between Buildings on the Same Lot), the minimum distance between a detached ADU and the primary dwelling on the same lot shall not be less than 6 feet. The six-foot distance shall be measured from the nearest point of any portion of the ADU to the primary dwelling. Notwithstanding the foregoing, this provision shall not preclude construction of an ADU that is at least 800-square feet in size. e) Lot Coverage. An accessory dwelling unit that is 800 square feet or less, consistent with the height requirements in Section 11.4.05.115 (F)(2)(b), and compliant with a minimum 4-foot side and rear setback (or such lesser side or rear setbacks required under the zoning district), shall be considered consistent with all city development standards, irrespective of any other municipal code limitations governing lot coverage, floor area ratio, open space, or front yard setback. For any other accessory dwelling unit, lot 24 9 6 1 2 coverage, floor area ratio, open space, and front yard setback requirements for the underlying zone shall apply. f) Access. An ADU shall have a separate exterior access. An ADU above a detached garage may be accessed by an exterior staircase. Interior access between the primary unit and the ADU shall be prohibited. g) Fire sprinklers. ADUs are required to provide fire sprinklers if required for the Primary Dwelling. h) Historic resources. An ADU that has the potential to adversely impact any historical resource listed on the California Register of Historic Resources, shall be designed and constructed in accordance with the “Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings” found at 36 CFR 68.3, as the same may be amended from time to time. An ADU shall also comply with all local historic register requirements, as well as all objective local requirements, ordinances, or Specific Plans that pertain to historic resources. 3) Parking Requirements: a) Except as otherwise provided in subparagraph (b) and (c) of this Subsection (F)(3), in addition to the off-street parking space(s) required for the Primary Dwelling, one off-street parking space shall be provided for each ADU. These spaces may be provided as tandem parking on a driveway of the same lot. b) Exception. An additional off-street parking space is not required if If an ADU does not exceed the lesser of either 850 square feet in gross floor area if it contains one or fewer bedrooms or 1,000 square feet in gross floor area if more than one bedroom, or if any of the following provisions are met: i. The ADU is located within one-half mile walking distance of Public Transit; or ii. The ADU is located within an architecturally and historically significant historic district; or iii. The ADU is an attached ADU proposed with a new single-family development, or a proposed conversion of an existing Primary Dwelling or accessory structure; or iv. The ADU is located in an area where on-street parking permits are required but not offered to an ADU occupant; or v. The ADU is located within one block of a city-approved and dedicated parking space for a car share vehicle. 25 9 6 1 2 vi. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this subdivision (3)(b). c) When a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, the local agency shall not require that those offstreet parking spaces be replaced as long as the ADU remains in use as a legal ADU. 4) Other provisions: a) Recreational trailers are not permitted to be used as ADUs. This includes, but is not limited, to recreational vehicles, campers, camping trailers and mobile/motor homes. G. Standards for JADUs. In accordance with the standards set forth in Government Code Section 66333, JADUs shall comply with the following requirements, unless State law is amended to set forth different standards in which case State law standards will govern: 1) A JADU shall be a minimum of 150 square feet and a maximum of 500 square feet of gross floor area. The gross floor area of a shared sanitation facility (bathroom) shall not be included in the maximum gross floor area of a JADU. 2) A JADU must be contained entirely within the walls of the existing or proposed single-family dwelling. For purposes of this subsection, an attached garage is considered to be within the walls of the existing or proposed single-family dwelling. 3) A separate exterior entry from the main entrance to the single-family dwelling shall be provided to serve a JADU. 4) A JADU may include a separate sanitation facility (bathroom), or may share sanitation facilities (bathroom(s)) with the existing single-family dwelling. If a JADU does not include a separate bathroom, the JADU shall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area shared with the primary unit. 5) A JADU shall include an efficiency kitchen which shall meet the requirements of Government Code Section 66333. 6) No additional parking is required for a JADU. H. No Separate Conveyance. Except as otherwise required by Government Code Section 66341, the ADU or JADU shall not be sold, transferred, or assigned 26 9 6 1 2 separately from the Primary Dwelling, but may be rented for a term of 30 days or longer. Rentals of less than 30 days are prohibited. I. Covenant required. Prior to the issuance of a Certificate of Occupancy for the ADU or JADU, the property owner shall record a declaration of restrictions, in a form approved by the City Attorney, confirming the following restrictions applicable to the property, the property owner, and all successors in interest: 1) Except as otherwise required by Government Code Section 66341, the ADU or JADU shall not be sold, transferred, or assigned separately from the Primary Dwelling, but may be rented for a term of 30 days or longer. 2) Rentals of less than 30 days are prohibited. 3) If there is a JADU on the property, either the JADU or Primary Dwelling shall be occupied by the owner of record. J. Fees and utility connections. 1) ADUs and JADUs shall have adequate water and sewer services. These services may be provided from the water and sewer points of connection for the Primary Dwelling and not be a separate set of services, unless the local water and sewer service provider requires a new or separate utility. For an ADU that is not a conversion of an existing space, a separate utility connection directly between the accessory dwelling unit and the utility may be required. Consistent with Government Code Section 66324, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit. 2) The owner of an ADU or JADU shall be subject to the payment of all sewer, water and other applicable fees, including impact fees set forth in Government Code Section 66000 et seq., except as follows: a) ADUs that are less than 750 square feet shall not be subject to impact fees. b) ADUs that are 750 square feet or more shall be charged impact fees that are proportional in relation to the square footage of the Primary Dwelling unit. K. Fire safety requirements. The construction of all new accessory dwelling units shall meet minimum standards for fire safety as defined in the Building Code of the City of Seal Beach and the Fire Code of the City of Seal Beach, as the same may be amended by the City from time to time. All applications for accessory dwelling units in areas designated as high or very high fire hazard zones shall be reviewed by the Building Official and Fire Marshal to ensure the standards for fire safety as defined in the Building Code of the City of Seal Beach and the Fire Code of the City of Seal Beach will be met. Fuel modification treatments (clearing requirements) will be greater for those properties in high and very high fire hazard 27 9 6 1 2 severity zones, which may be characterized by steeper terrain, larger and denser fuels, fuels that are highly volatile, and subject to frequent fires. Clearing requirements shall meet the State’s “General Guidelines for Creating Defensible Space.” Section 18.Severability. If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional. Section 19.Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. Section 20.Effective Date. This Ordinance shall take effect thirty (30) days after passage. INTRODUCED at a regular meeting of the City Council of the City of Seal Beach held on the 12th day of November 2024. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Seal Beach this 9th day of December 2024. AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: Schelly Sustarsic, Mayor ATTEST: Gloria Harper, City Clerk 28 9 6 1 2 APPROVED AS TO FORM: __________________________________ Nicholas Ghirelli, City Attorney 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 Ordinance 1716 was introduced for first reading at a regular meeting held on the 12th day of November 2024, and was passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024, and do hereby further certify that the Ordinance has been published pursuant to the Seal Beach Charter and Resolution Number 2836. Gloria D. Harper, City Clerk Agenda Item D AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Amendments to Professional Service Agreements with Lisa Wise Consulting, Inc. ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7581: 1. Authorizing the Amendments to two Professional Service Agreements with Lisa Wise Consulting, Inc. extending the term of each to September 30, 2025; and, 2. Authorizing the City Manager to execute the Amendments. BACKGROUND AND ANALYSIS: Lisa Wise Consulting, Inc. has been assisting the City of Seal Beach (City) with development of the Housing Element and related implementation services including the Zoning Code update, which is a key component of the Housing Element work plan and necessary to receive certification from the California Department of Housing and Community Development. At this time, the bulk of the work for these projects has been completed, however, an Environmental Impact Report (EIR) to analyze the potential impacts of the Housing Element and Zoning Code update is required. The EIR, though underway, is not yet completed, which will delay further action on the Housing Element and Zoning Code update. Staff estimates all three items should be ready for City Council consideration in the spring of 2025, however, both Professional Services Agreements (Agreements) with Lisa Wise Consulting are set to expire before that time. The proposed amendments will extend the term of the respective Agreements to September 30, 2025. No other changes to the Agreements are proposed. ENVIRONMENTAL IMPACT: The proposed professional services agreement amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State CEQA Guidelines which states that CEQA only applies to projects that Page 2 1 9 2 6 have potential for causing a significant effect on the environment. Approval of the professional services agreement amendments will not have a significant effect on the environment. LEGAL ANALYSIS: This item has been reviewed and approved as to form. FINANCIAL IMPACT: These Amendments represent time extensions only, adequate funding was included in the adopted FY 2024-25 Annual Budget. STRATEGIC PLAN: Completion of the Housing Element was previously identified as a City Council Priority for the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7581: 1. Authorizing Amendments to two Professional Service Agreements with Lisa Wise Consulting, Inc. extending the term of each to September 30, 2025; and, 2. Authorizing the City Manager to execute the Amendments. SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Patrick Gallegos Alexa Smittle, Community Development Director Patrick Gallegos, Interim City Manager ATTACHMENTS: A. Resolution 7581 B. Amendment 1 to Professional Services Agreement related to the Zoning Code Amendment C. Amendment 1 to Professional Services Agreement related to the Housing Element and Related Services D. Original Professional Services Agreement related to the Zoning Code Amendment E. Original Professional Services Agreement related to the Housing Element and Related Services RESOLUTION 7581 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING AMENDMENT 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH LISA WISE CONSULTING, INC. FOR ZONING CODE UPDATE SERVICES, AND AMENDMENT 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH LISA WISE CONSULTING, INC. FOR HOUSING ELEMENT RELATED SERVICES EXTENDING BOTH AGREEMENTS UNTIL SEPTEMBER 30, 2025 WHEREAS, the City of Seal Beach (City) and Lisa Wise Consulting, Inc. (Consultant) are parties to a Professional Services Agreement dated September 11, 2023, for services relating to the Housing Element and related supporting services (Housing Element Agreement); and a Professional Services Agreement dated March 11, 2024, related to zoning code update services (Zoning Agreement); and, WHEREAS, the Consultant has been instrumental in helping the City to be in compliance with State law as it relates to Housing Elements; and, WHEREAS, City and Consultant have determined that additional time is required for continued support services to complete the Housing Element and associated Zoning Code Update and wish to extend the Term of the Housing Element Agreement and the Zoning Agreement to September 30, 2025. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves to amend the Housing Element Agreement, extending the Term through September 30, 2025 to complete the associated scope of work related to the Housing Element and associated services. Section 2. The City Council hereby approves to amend the Zoning Agreement, extending the Term through September 30, 2025 to complete the associated scope of work related to creation of a new land use designation within the City’s Zoning Code. Section 3. The Council hereby directs the City Manager to execute the Housing Element Amendment and Zoning Amendment on behalf of the City. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: 9 6 9 0 AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7581 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk Agenda Item E AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Amendment to the Professional Services Agreement with Holistic System Integration Solutions ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7582: 1. Approving Amendment 1 to the Professional Services Agreement with Holistic System Integration Solutions to approve an increase in compensation of $15,000 for continued post-implementation support of Tyler Technologies’ Enterprise Permitting and Licensing Land Management Software System for a revised total not-to-exceed amount of $20,000, and a seven-month extension to expire on June 30, 2025; and, 2. Directing the City Manager to execute Amendment 1 on behalf of the City. BACKGROUND AND ANALYSIS: On September 23, 2024, the City Council approved a Professional Services Agreement (PSA) with Holistic System Integration Solutions (Holistic) to provide post-implementation support for Tyler Technologies’ (Tyler) Enterprise Permitting and Licensing (EPL) Land Management Software System. Holistic has been instrumental in the successful launch and ongoing support of the Tyler system with services including system configuration, comprehensive testing, development of operating procedures, and provision of various remote services. Holistic ensured a smooth transition and optimal functionality of the newly implemented system. The initial agreement allocated $5,000 for Holistic to provide transitional support services for a limited period. As the City progressed through the post- implementation phase, it faced significant changes in the support structure from Tyler. This gradual decrease in vendor support necessitates a proactive approach to ensure continued system stability and optimization. The proposed PSA amendment would augment the project scope to support the continued transitional support. Amendment 1 would add an additional $15,000 for a total project budget of $20,000; this increase reflects the need for extended support during the Page 2 1 9 5 4 transition period. In addition, Amendment 1 would extend the contract expiration date by seven months, to June 30, 2025, to provide a buffer period for the City to navigate the reduced support and evaluate long-term support needs. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: This item has been reviewed and approved as to form. FINANCIAL IMPACT: Adequate funding is available in Fund 103-300-0231-51303, a fee-based revenue source for technology needs. STRATEGIC PLAN: Implementation of a new permitting system was included in the 2021 Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7582: 1. Approving Amendment 1 to the Professional Services Agreement with Holistic System Integration Solutions to approve an increase in compensation of $15,000 for continued post-implementation support of Tyler Technologies’ Enterprise Permitting and Licensing Land Management Software System for a revised total not-to-exceed amount of $20,000, and a seven-month extension to expire on June 30, 2025; and, 2. Directing the City Manager to execute Amendment 1 on behalf of the City. SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Patrick Gallegos Alexa Smittle, Community Development Director Patrick Gallegos, Interim City Manager Prepared by: Megan Coats, Management Analyst Page 3 1 9 5 4 ATTACHMENTS: A. Resolution 7582 B. Amendment 1 to the Professional Services Agreement with Holistic System Integration Solutions C. Original Professional Services Agreement with Holistic System Integration Solutions RESOLUTION 7582 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING AMENDMENT 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH HOLISTIC SYSTEM INTEGRATION SOLUTIONS INCREASING THE TOTAL COMPENSATION BY $15,000 AND EXTENDING THE DURATION BY SEVEN MONTHS WHEREAS, the City of Seal Beach (City) and Holistic System Integration Solutions (Consultant) are parties to that certain Professional Services Agreement approved on September 23, 2024, for Post-Go-Live Transition Services (collectively the “Agreement”); and, WHEREAS, the Consultant has been instrumental in the successful launch and ongoing support of the Tyler Technologies system, providing services including system configuration, comprehensive testing, development of operating procedures, and various services; and, WHEREAS, the City faces significant changes in the support structure from Tyler, necessitating a proactive approach to ensure continued system stability and optimization; and, WHEREAS, City and Consultant have determined that additional time is required for continued support services and wish to extend the Term of the Agreement to June 30, 2025; and, WHEREAS, City and Consultant have determined that $15,000 of additional funding is necessary for the continued support services. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves to amend the Professional Services Agreement for Post-Go-Live Transition Services, extending the Term through June 30, 2025, and approving an increase in compensation of $15,000 for configuration, fee structure setup, reporting, GIS integration, testing, standard operating procedures development, training, issue resolution, staff consultation, and remote assistance for a revised total not- to-exceed amount of $20,000. Section 2. The Council hereby directs the City Manager to execute Amendment 1 on behalf of the City. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: 9 6 5 2 AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7582 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Approving and Authorizing Amendment No. 2 to the Agreement between the City of Seal Beach and Clear Channel Outdoor, LLC for Bus Shelter Maintenance and Advertising Services ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7583: 1. Approving Amendment No. 2 to the Agreement for Bus Shelter Maintenance and Advertising with Clear Channel Outdoor, LLC dated March 10, 2014, as previously amended by Amendment No. 1 dated July 27, 2020, and previously extended by letter dated January 1, 2019 (“First Extension”), and extending the term of the agreement for an additional five-year term (“Second Extension”), and supplementing the services to be provided by Clear Channel Outdoor, LLC, and revising the annual fee payable to the City; and, 2. Authorizing the City Manager to execute Amendment No. 2 to the Agreement on behalf of the City. BACKGROUND AND ANALYSIS: Clear Channel Outdoor, LLC, (“Clear Channel Outdoor”) formally known as Metro Display Advertising, has contracted with the City of Seal Beach (“City”) for the provision and maintenance of bus shelters throughout the City since 1997. Under the Agreement, Clear Channel Outdoor has been required to supply the City with 22 bus shelters complete with benches and trash receptacles, perform regular pressure washing and graffiti removal of shelter equipment, make necessary repairs, and regularly empty trash receptacles. The Agreement ensures that the City does not incur costs for installing and maintaining these bus shelters and allows the City to share a portion of the gross advertising revenues earned through Clear Channel Outdoor’s bus shelter advertising. 1 9 4 4 The current Agreement with Clear Channel Outdoor was approved at the March 10, 2014 City Council meeting for a five-year term with an option to renew an additional five-year term under the same Agreement conditions. On January 1, 2019, the Agreement was renewed for a second five-year term in accordance with the Agreement provisions, which required written notice. On July 27, 2020, the City Council adopted Resolution 7058, approving Amendment No. 1 to the Agreement with Clear Channel Outdoor. This Amendment allowed for the deferral of the payment owed to the City and waived the associated late fee. At that time, Clear Channel Outdoor faced significant reductions in its bus shelter advertising revenues due to the COVID-19 pandemic and the subsequent government-mandated shutdowns implemented at both local and state levels. These disruptions reduced foot traffic and commuter usage of public transport leading Clear Channel Outdoor to reassess their marketing strategies and budgets. Clear Channel Outdoor has since reported ongoing challenges, stating that it has not yet recovered from the substantial revenue losses incurred from the pandemic. The company continues to face a challenging advertising landscape with the decline of non-digital advertising. As such, Amendment No. 2 provides that the City’s share of the gross bus shelter advertising revenues is revised to the greater of: (1) 25% of gross advertising revenue generated by the shelters; or (2) a minimum annual guaranteed payment of $15,000. Additionally, Amendment No. 2 provides Clear Channel Outdoor the option to renew the Agreement for an additional five (5) years, expiring January 1, 2029. Under Amendment No. 2, Clear Channel Outdoor will refurbish the 22 current bus shelters to restore them to like-new condition. Refurbishment includes applying new paint, installing new hardware, and replacing the adjacent trash receptacle. Furthermore, all existing bus shelter benches will be refurbished, and anti-vagrant bars will be installed. Clear Channel Outdoor will have six (6) months from the execution date of Amendment No. 2 to complete the refurbishment project. The commitment to refurbish the bus shelters serves as a one-time upgrade to address the decrease in minimum guaranteed payment and enhance public amenities for the benefit of both the community and commuters. By prioritizing these improvements, the City can ensure a more attractive and functional space, potentially increasing future advertising revenues. ENVIRONMENTAL IMPACT: This item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that the Agreement with Clear Channel Outdoor will not have a significant effect on the environment. LEGAL ANALYSIS: 1 9 4 4 The City Attorney has reviewed and approved the Agreement and resolution as to form. FINANCIAL IMPACT: Under the terms of the Agreement, the City anticipates a minimum of $15,000 annually in shared advertising revenues from Clear Channel Outdoor, or 25% of the gross advertising revenue generated by the bus shelters, whichever amount is greater. The approval of Amendment No. 2 to the Agreement will increase the gross advertising shared revenues from 20% to 25% and reduce the City’s minimum annual guarantee from $45,000 to $15,000. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7583: 1. Approving Amendment No. 2 to the Agreement for Bus Shelter Maintenance and Advertising with Clear Channel Outdoor, LLC dated March 10, 2014, as previously amended by Amendment No. 1 dated July 27, 2020, and previously extended by letter dated January 1, 2019 (“First Extension”), and extending the term of the agreement for an additional five-year term (“Second Extension”), and supplementing the services to be provided by Clear Channel Outdoor, LLC, and revising the annual fee payable to the City; and, 2. Authorizing the City Manager to execute Amendment No. 2 to the Agreement on behalf of the City. SUBMITTED BY: NOTED AND APPROVED: Iris Lee Patrick Gallegos Iris Lee, Director of Public Works Patrick Gallegos, Interim City Manager Prepared by: Sean Sabo, Management Analyst ATTACHMENTS: A. Resolution 7583 B. Amendment No. 2 (includes Second Extension) C. Agreement with Clear Channel Outdoor, LLC, First Extension, and Amendment No. 1 RESOLUTION 7583 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE AGREEMENT FOR BUS SHELTER MAINTENANCE AND ADVERTISING BETWEEN THE CITY OF SEAL BEACH AND CLEAR CHANNEL OUTDOOR, LLC WHEREAS, the City of Seal Beach and Clear Channel Outdoor, LLC are parties to an Agreement for Bus Shelter Maintenance and Advertising Services, dated October 10, 2014 (“Agreement”), as previously amended by Amendment No. 1 dated July 27, 2020, and previously extended by letter dated January 1, 2019 (“First Extension’”), pursuant to which Contractor provides and maintains bus shelters at various designated bus stop locations throughout the City and pays City a portion of its advertising revenues from the bus shelters; and, WHEREAS, as a result of the pandemic and an ongoing challenging advertising landscape, Clear Channel Outdoor, LLC has experienced a slow recovery in its bus shelter advertising revenues; and, WHEREAS, the parties wish to amend the Agreement pursuant to Amendment No. 2, to: (a) revise the annual fee payable to the City to 25% of gross advertising revenues generated by the shelters or a minimum annual guaranteed payment of $15,000, whichever amount is greater; and (b) extend the term of the Agreement for an additional five-year term (“Second Extension”). NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves Amendment No. 2 to the Agreement dated October 10, 2014, as previously amended by Amendment No. 1 dated July 27, 2020, and previously extended by letter dated January 1, 2019 (“First Extension”) for Bus Shelter Maintenance and Advertising between the City of Seal Beach and Clear Channel Outdoor, LLC, to (a) revise the annual fee payable to the City to 25% of gross advertising revenues generated by the shelters or a minimum annual guaranteed payment of $15,000, whichever amount is greater; and (b) extend the term of the agreement for an additional five-year term (“Second Extension”). SECTION 2. The City Council hereby authorizes and directs the City Manager to execute Amendment No. 2 to the Agreement on behalf of the City. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a 9 5 9 7 regular meeting held on the 9th day of December, 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7583 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December, 2024. Gloria D. Harper, City Clerk Agenda Item G AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Approving Amendment No. 6 to the Cooperative Agreement No. C-6-1126 with Orange County Transportation Authority for the OCTA I-405 Improvement Project (CIP ST1809) ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7584: 1. Approving Amendment No. 6 to Cooperative Agreement No. C-6-1126 dated July 29, 2016, as previously amended by Amendment No. 1 dated June 11, 2019, Amendment No. 2 dated January 21, 2022, Amendment No. 3 dated April 25, 2023, Amendment No. 4 dated July 5, 2023, and Amendment No. 5 dated June 25, 2024, with Orange County Transportation Authority; and, 2. Authorizing the City Manager to execute Amendment No. 6 to Cooperative Agreement No. C-6-1126. BACKGROUND AND ANALYSIS: On July 29, 2016, the City Council approved Cooperative Agreement No. C-6-1126 (“Agreement”) between Orange County Transportation Authority (“OCTA”) and the City of Seal Beach (“City”) for the I-405 Improvement Project (“Project”). The Project provided one (1) additional general-purpose lane and two (2) toll lanes in each direction between the westerly Orange County limits and the City of Costa Mesa. The Agreement outlined the responsibilities of both the City and OCTA throughout the course of the Project and provided the financial mechanism for the City to receive reimbursement funds for staff time, consultant assistance, and pavement restoration upon completion. The Agreement further provided $120,600 in reimbursement funds for the City and consulting services for the duration of the Project with amendment options, as necessary. Page 2 1 9 5 2 On June 11, 2019, the City entered into Amendment No. 1 to the Agreement with OCTA for an additional $250,000 for the total not-to-exceed amount of $370,600. On January 21, 2022, the City entered into Amendment No. 2 to the Agreement for an additional $370,000 for the total not-to-exceed amount of $740,600 for the Project and to extend the agreement term to April 30, 2023. On April 25, 2023, the City entered into Amendment No. 3 to the Agreement to extend the term of the Agreement to June 30, 2024. On July 5, 2023, the City entered into Amendment No. 4 to the Agreement for an additional $200,000 for the total not-to-exceed amount of $940,600. On June 25, 2024, the City entered into Amendment No. 5 to the Agreement to extend the term of the Agreement to December 31, 2024. As the Agreement is set to expire on December 31, 2024, OCTA has requested the City enter into Amendment No. 6 to extend the term of the Agreement until June 30, 2025 to cover the remaining Project close out items. 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 Amendment No. 6 to a Cooperative agreement with Orange County Transportation Authority will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has reviewed the resolution and amendment and approved as to form. FINANCIAL IMPACT: There are no fiscal impacts related to the approval of Amendment No. 6 to the Agreement. The current Agreement with approved amendments will provide a maximum Project-related reimbursement of $940,600. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7584: Page 3 1 9 5 2 1. Approving Amendment No. 6 to Cooperative Agreement No. C-6-1126 dated July 29, 2016, as previously amended by Amendment No. 1 dated June 11, 2019, Amendment No. 2 dated January 21, 2022, Amendment No. 3 dated April 25, 2023, Amendment No. 4 dated July 5, 2023, and Amendment No. 5 dated June 25, 2024, with Orange County Transportation Authority; and, 2. Authorizing the City Manager to execute Amendment No. 6 to Cooperative Agreement No. C-6-1126. SUBMITTED BY: NOTED AND APPROVED: Iris Lee Patrick Gallegos Iris Lee, Director of Public Works Patrick Gallegos, Interim City Manager Prepared by: David Spitz, P.E. Associate Engineer ATTACHMENTS: A. Resolution 7584 B. Amendment No. 6 to OCTA Agreement C. Amendment No. 5 to OCTA Agreement D. Amendment No. 4 to OCTA Agreement E. Amendment No. 3 to OCTA Agreement F. Amendment No. 2 to OCTA Agreement G. Amendment No. 1 to OCTA Agreement H. Executed OCTA Cooperative Agreement No. C-6-1126 RESOLUTION 7584 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 6 TO THE COOPERATIVE AGREEMENT NO. C-6-1126 WITH ORANGE COUNTY TRANSPORTATION AUTHORITY WHEREAS, Orange County Transportation Authority (“OCTA”), in cooperation and partnership with the California Department of Transportation (“Caltrans”), proposed to reduce congestion and improve lane continuity through the I-405 corridor with improvements to mainline and interchanges on I-405 between State Route 73 and Interstate 605; and, WHEREAS, OCTA, in cooperation and partnership with the Caltrans, entered into Cooperative Agreement No. C-6-1126 (“Agreement”), dated July 29, 2016, with the City of Seal Beach (“City”), defining the specific terms, conditions, and funding responsibilities between OCTA and the City for a total not-to-exceed amount of $120,600; and, WHEREAS, on June 11, 2019, the City and OCTA entered into Amendment No. 1 to the Agreement to increase compensation by $250,000 for the total not-to- exceed amount of $370,600; and, WHEREAS, on January 21, 2022, the City and OCTA entered into Amendment No. 2 to the Agreement to increase compensation by $370,000 for the total not-to- exceed amount of $740,600 and extend the term up to April 30, 2023; and, WHEREAS, On April 25, 2023, the City and OCTA entered into Amendment No. 3 to the Agreement to extend the Agreement term to June 30, 2024; and, WHEREAS, On July 5, 2023, the City and OCTA entered into Amendment No. 4 to the Agreement to increase compensation by $200,000 for the total not-to- exceed amount of $940,600; and, WHEREAS, On June 25, 2024, the City ad OCTA entered into Amendment No. 5 to the Agreement to extend the Agreement term to December 31, 2024; and, WHEREAS, the City and OCTA desire to further extend the Agreement term. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves that certain Amendment No. 6 dated December 9, 2024 (“Amendment No. 6”) to the Cooperative Agreement dated July 29, 2016 (“Agreement”), as previously 9 6 6 6 amended by Amendment No. 1 on June 11, 2019 (“Amendment No. 1”), Amendment No. 2 on January 21, 2022 (“Amendment No. 2”), Amendment No. 3 on April 25, 2023 (“Amendment No. 3”) , Amendment No. 4 on July 5, 2023 (“Amendment No. 4”), and Amendment No. 5 on June 25, 2024 (“Amendment No. 5”) between the City of Seal Beach and OCTA for I-405 Improvement Project Consulting Services, to extend the Agreement’s term until June 30, 2025 for the Agreement, Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, and Amendment No. 5, copies of which such Agreement and all Amendments are incorporated herein by this reference as though set forth in full. Section 2. The City Council hereby authorizes and directs the City Manager to execute Amendment No. 6 to the Agreement. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } 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 7584 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk Agenda Item H AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Submittal of Yearly Expenditure Report to Orange County Transportation Authority for Measure M2 Eligibility ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7585: 1. Finding the yearly expenditure report to Orange County Transportation Authority (OCTA) for Measure M2 Eligibility for FY 2023-2024 was prepared in conformance with the M2 Expenditure Report Template provided in the Renewed Measure M Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year and balances at the end of the fiscal year; and, 2. Adopting M2 Expenditure Report for FY 2023-24; and, 3. Directing the City Manager, or their designee, to submit the M2 Expenditure Report to OCTA no later than December 31, 2024. BACKGROUND AND ANALYSIS: In November 1990, the voters of Orange County approved Measure M, the Revised Traffic Improvement and Growth Management Ordinance. Measure M created a fund for transportation improvements to mitigate traffic impacts generated by existing and proposed development. Measure M authorized the imposition of an additional half-cent retail transaction and use tax for a period of twenty (20) years. In November 2006, Measure M was renewed by the voters of Orange County for an additional thirty (30) years, and is now known as Measure M2. Funds identified as Measure M2 “fairshare” funds are used on local and regional transportation improvement and maintenance projects. Other Measure M2 funds for transportation-related projects are made available through several competitive programs included in the Comprehensive Transportation Funding Program (CTFP). Page 2 1 9 5 6 To be eligible to receive Measure M2 “fairshare” and CTFP funds, the City must annually, biennially and/or triennially satisfy the requirements below: 1. Comply with the conditions and requirements of the Orange County Congestion Management Program. 2. Establish a policy which requires new development to pay its fair share of transportation-related improvements associated with their new development. 3. Adopt a General Plan Circulation Element consistent with the County’s Master Plan of Arterial Highways (MPAH). 4. Adopt a seven-year Capital Improvement Program (CIP) that includes all transportation projects funded partially or wholly by Measure M2 dollars. 5. Adopt and adequately fund a biennial Local Pavement Management Plan (PMP). 6. Adopt and provide an annual, year-end Expenditure Report to OCTA. 7. Provide OCTA with a Project Final Report within six (6) months following completion of a project funded with Net Revenues. 8. Satisfy Maintenance of Effort (MOE) Requirements. 9. Agree to expend all Measure M2 revenues within three (3) years of receipt. 10. Consider, as part of the General Plan, land use and planning strategies that accommodate transit and non-motorized transportation. 11. Adopt and comply with a Local Signal Synchronization Plan (LSSP). The City of Seal Beach successfully submitted all required items above to Orange County Transportation Authority (OCTA) by the required annual deadline of June 30, 2024. The year-end expenditure report summarizes all Measure M2 expenditures for the prior fiscal year and is required to be submitted by December 31, 2024. The approval of this report will allow the City to continue to receive OCTA Measure M2 funds. 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 adoption of the yearly M2 Expenditure Report, will not have a significant effect on the environment. Page 3 1 9 5 6 LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution as to form. FINANCIAL IMPACT: The City received $558,612 in Measure M2 “fairshare” funds in FY 2023-24. Additionally, the City of Seal Beach remains eligible to receive funding for the numerous competitive grants secured within Measure M2. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7585: 1. Finding the yearly expenditure report to Orange County Transportation Authority (OCTA) for Measure M2 Eligibility for FY 2023-24 was prepared in conformance with the M2 Expenditure Report Template provided in the Renewed Measure M Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year and balances at the end of the fiscal year; and, 2. Adopting M2 Expenditure Report for FY 2023-2024; and, 3. Directing the City Manager, or her designee, to submit the M2 Expenditure Report to OCTA no later than December 31, 2024. SUBMITTED BY: NOTED AND APPROVED: Iris Lee Patrick Gallegos Iris Lee, Director of Public Works Patrick Gallegos, Interim City Manager Prepared by: David Spitz, P.E. Associate Engineer ATTACHMENTS: A. Resolution 7585 B. Fiscal Year 2023-24 Measure M2 Expenditure Report RESOLUTION 7585 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF SEAL BEACH FOR FY 2023-2024 WHEREAS, local jurisdictions are required to meet eligibility requirements and submit eligibility verification packages to Orange County Transportation Authority (OCTA) in order to remain eligible to receive M2 funds; and, WHEREAS, local jurisdictions are required to adopt an annual M2 Expenditure Report as part of the eligibility requirements; and, WHEREAS, local jurisdictions are required to account for Net Revenues, developer/traffic impact fees, and funds expended by local jurisdiction in the M2 Expenditure Report that satisfy the Maintenance of Effort requirements; and, WHEREAS, the M2 Expenditure Report shall include all Net Revenue fund balances, interest earned and expenditures identified by type and program or project; and, WHEREAS, the M2 Expenditure Report must be adopted and submitted to the OCTA each year within six months of the end of the local jurisdiction’s fiscal year to be eligible to receive Net Revenues as part of M2. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The Measure M2 Expenditure Report for Fiscal Year 2023-2024, incorporated herein by this reference, is in conformance with the M2 Expenditure Report Template provided in the Measure M2 Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year and balances at the end of fiscal year. Section 2. The M2 Expenditure Report is hereby adopted for the City of Seal Beach. Section 3. The City of Seal Beach Director of Finance/City Treasurer is hereby authorized to sign and submit the M2 Expenditure Report for Fiscal Year ending June 30, 2024 to the Orange County Transportation Authority no later than December 31, 2024. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } 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 7585 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk Agenda Item I AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Notice of Completion for the FY 2024-25 Annual Slurry Seal Program, CIP STO1 ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7586: 1. Accepting the FY 2024-25 Annual Slurry Seal Program, CIP STO1, by Petrochem Materials Innovation, LLC in the amount of $242,358.58; 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 thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. BACKGROUND AND ANALYSIS: As part of the City’s ongoing roadway preservation efforts, slurry seal coating applications are utilized to extend the pavement surface’s serviceable life. Accordingly, the FY 2024-25 Annual Slurry Seal Program (“Project”) was included in the FY 2024-25 adopted budget. The roadways selected for this year’s Project were identified based on the 2024 Pavement Management Program report, and include the following streets: College Park East o Aster Street – Almond Avenue to Candleberry Avenue o Basswood Street o Birchwood Avenue – Aster Street to Daisy Street o Elder Avenue – Ironwood Avenue to Fuchsia Street o Ironwood Avenue – Candleberry Avenue to Heather Street o Oleander Street – Almond Avenue to Fir Avenue o Violet Street – Elder Avenue to Fir Avenue Page 2 1 9 5 9 o Violet Street – Almond Avenue to Candleberry Avenue The Project was carried out under the existing on-call agreement with Petrochem Materials Innovation, LLC (PMI) and has been inspected, meets all standards and requirements within the Project specifications, and has been completed to the satisfaction of the City Engineer. It is requested that the City Council formally accept the Project, direct staff to file a Notice of Completion with the Orange County Clerk Recorder’s Office and release the retention thirty-five (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 Class 1 Subsection (c). LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution as to form. FINANCIAL IMPACT: The table below presents a breakdown of the total construction Project cost: Description Amount Construction Bid Items $ 242,358.58 Contract Change Orders $ 0.00 Project Cost $ 242,358.58 STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7586: 1. Accepting the FY 2024-25 Annual Slurry Seal Program, CIP STO1, by Petrochem Materials Innovation, LLC in the amount of $242,358.58; 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 thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project. Page 3 1 9 5 9 SUBMITTED BY: NOTED AND APPROVED: Iris Lee Patrick Gallegos Iris Lee, Director of Public Works Patrick Gallegos, Interim City Manager Prepared by: William Luna, Assistant Engineer ATTACHMENTS: A. Resolution 7586 B. Notice of Completion RESOLUTION 7586 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL ACCEPTING COMPLETION OF THE FY 2024-2025 ANNUAL SLURRY SEAL PROGRAM, CIP STO1 THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City accepts the completion of the FY 2024-25 Annual Slurry Seal Program (“Project”), CIP STO1, by Petrochem Materials Innovation, LLC in the amount of $242,358.58 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 9th day of December 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } 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 7586 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. 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 Sections 6103 and 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 October 28, 2024. The work was FY 2024-25 Annual Slurry Seal Program, CIP STO1. 6. The name of the contractor(s), if any, for such improvement was: Petrochem Materials Innovation, LLC. 7. The date of the Contract Award was June 24, 2024. 8. 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, Seal Beach, CA. Date: _______________ _________________________________________ Iris Lee, Director of Public Works, City of Seal Beach Signature of owner or corporate officer of owner named in paragraph 2 or agent. VERIFICATION I, the undersigned, say: Iris Lee (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 _____________________, 2024, at Seal Beach, California. (Date of Signature) _________________________________________ Iris Lee, Director of Public Works, City of Seal Beach Agenda Item J AGENDA STAFF REPORT DATE: December 9, 2024 TO: Honorable Mayor and City Council FROM: Patrick Gallegos, Interim City Manager SUBJECT: Consideration of Memorandum of Understanding (MOU) with the Seal Beach Marine Safety Management Association for the Period of July 1, 2024 through June 30, 2026 ________________________________________________________________ SUMMARY OF REQUEST: That the Council adopt Resolution 7587: 1. Approving the Memorandum of Understanding with the Seal Beach Marine Safety Management Association for the period of July 1, 2024 through June 30, 2026; and, 2. Approving Budget Amendment BA#25-06-01 in the amount of $8,266; and, 3. Authorizing the City Manager to execute the Memorandum of Understanding with the Seal Beach Marine Safety Management Association. BACKGROUND AND ANALYSIS: The City has met and collectively bargained in good faith with members of the Seal Beach Marine Safety Management Association (SBMSMA). Based upon such collective bargaining, the terms and conditions of a tentative agreement were reached. The City of Seal Beach and SBMSMA drafted a Memorandum of Understanding (MOU) incorporating the agreed-upon terms, conditions, and provisions. The MOU has a term of July 1, 2024, through June 30, 2026. The Seal Beach Marine Safety Management Association represents full-time employees who currently have the following classifications: Grade Job Classifications 31 Marine Safety Lieutenant 23 Marine Safety Officer Page 2 Significant elements of the MOU include: Cost of Living Adjustment (COLA) To help ensure the City recruits and retains a highly qualified Marie Safety workforce, SBMSMA members will receive a COLA as follows: FY 2024-2025: 2.5% COLA Increase FY 2025-2026: 2.5% COLA Increase Non-PERsable (one-time) Payment Following the adoption of the ratified MOU, SBMSMA members will receive a one- time, non-PERSable lump sum payment of $4,000. Wellness Stipend SBMSA members will receive an additional $50 annual lump sum for wellness according to the provision below: • $550 Wellness stipend for the Marine Safety Lieutenant Job Classification • $450 Wellness stipend for the Marine Safety Officer Job Classification The lump sum will be paid through the agreement term including FY 2024-2025 and FY 2025-2026. Addition of the Seal Beach Marine Safety Fitness Program The physical fitness program is a voluntary program for all members of SBMSMA. SBMSMA members may receive up to twenty (20) hours of vacation time by meeting the requirements of a fitness test at the end of each six (6) month period. Each member will be allowed to earn an annual maximum of up to forty (40) vacation hours for as long as the member continues successfully in the program. Floating Holiday SBMSA members will accrue an additional floating holiday per fiscal year. Vacation Buyback SBMSA members who have completed at least 1 year of continuous service will be eligible to request compensation for up to 160 hours of available accrued vacation twice per fiscal year, but no more than 80 hours per occurrence. Marine Safety Officer Job Classification Vacation Accrual SBMSA members in the Marine Safety Officer classification will accrue a maximum of 200 vacation hours per year. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed this staff report and approved it as to form. Page 3 FINANCIAL IMPACT: Budget Amendment #25-06-01 will allocate $8,266 from fund balance as follows: Description Account Revised/ Adopted Budget Proposed Budget Budget (diff) Amendment Salaries 106-230-0828-50020 $542,336 $550,452 $8,116 Health and Wellness Program 106-230-0828-50220 $2,303 $2,453 $150 Total Budget Adjustment $8,266 STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the Council adopt Resolution 7587: 1. Approving the Memorandum of Understanding with the Seal Beach Marine Safety Management Association for the period of July 1, 2024 through June 30, 2026; and, 2. Approving Budget Amendment BA#25-06-01 in the amount of ; and, 3. Authorizing the City Manager to execute the Memorandum of Understanding with the Seal Beach Marine Safety Management Association. NOTED AND APPROVED: Patrick Gallegos Patrick Gallegos, Interim City Manager ATTACHMENTS: A. Resolution 7587 B. SBMSMA Memorandum of Understanding C. SBMSMA Memorandum of Understanding Redline Version RESOLUTION 7587 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION (SBMSMA) FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2026 WHEREAS, the City and the Seal Beach Marine Safety Management Association met jointly and collectively bargained in good faith, and reached an agreement; and, WHEREAS, the City Council gave authority to the City Manager to place the proposed MOU on the agenda of the meeting of December 9, 2024, for City Council action; and, WHEREAS, the contracts between the City and the Seal Beach Marine Safety Management Associations are for the time period of July 1, 2024 – June 30, 2026; and, WHEREAS, Budget Amendment BA #25-06-01 will allocate $8,266 from fund balance as follows: Description Account Revised/ Adopted Budget Proposed Budget Budget (diff) Amendment Salaries 106-230-0828-50020 $542,336 $550,452 $8,116 Health and Wellness Program 106-230-0828-50220 $ 2,303 $ 2,453 $ 150 Total Budget Adjustment $8,266 NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the Memorandum of Understanding (MOU) between the City of Seal Beach and the Seal Beach Marine Safety Management Association (SBMSMA). Section 2. The City Council hereby approves Budget Amendment BA #24-06- 01 in the amount of $8,266. Section 3. The City Council hereby authorizes the Interim City Manager to execute the MOU and to carry out all terms of the approved MOU in accordance with applicable law. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members ______________________________________ NOES: Council Members ______________________________________ ABSENT: Council Members ______________________________________ ABSTAIN: Council Members ______________________________________ Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7587 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk Seal Beach Marine Safety Management Association (SBMSMA) MEMORANDUM OF UNDERSTANDING Resolution 7587 ADOPTED: December 9, 2024 EXPIRES: June 30, 2026 Resolution 7587 SBMSMA 2 of 28 TABLE OF CONTENTS SECTION 1: RECOGNITION ................................................................................... 5 SECTION 2: CITY RIGHTS Rights/Responsibilities ................................................................................... 6 SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE A. Health Insurance Coverage ...................................................................... 8 B. Life Insurance ............................................................................................ 9 C. Income Continuation ............................................................................. 9 D. Annual Dermatological Screening......................................................... 9 SECTION 4: RETIREMENT HEALTH INSURANCE ............................................. 10 SECTION 5: SICK LEAVE ..................................................................................... 11 SECTION 6: VACATION TIME .............................................................................. 11 SECTION 7: HOLIDAYS ........................................................................................ 13 SECTION 8: RETIREMENT ................................................................................... 15 SECTION 9: OVERTIME AND CALL OUT PAY ................................................... 15 SECTION 10: COMPENSATORY TIME OFF ....................................................... 16 Resolution 7587 SBMSMA 3 of 28 SECTION 11: PROVISIONAL APPOINTMENTS .................................................. 16 SECTION 12: SENIORITY BONUS ....................................................................... 16 SECTION 13: AUTOMOBILES AND MILEAGE ................................................... 16 SECTION 14: ADMINISTRATIVE LEAVE............................................................. 16 SECTION 15: LIMITATIONS ................................................................................. 17 SECTION 16: DEFERRED COMPENSATION ...................................................... 17 SECTION 17: BILINGUAL COMPENSATION ...................................................... 17 SECTION 18: CERTIFICATION PAY ……………………………………………...17 SECTION 19: WORK SCHEDULE ........................................................................ 18 SECTION 20: TUITION REIMBURSEMENT ......................................................... 18 SECTION 21: COMPENSATION PLAN A. Basic Compensation Plan ....................................................................... 18 B. Advancement within Salary Ranges ....................................................... 19 C. Salary Increases ..................................................................................... 19 D. Salary Decreases .................................................................................... 20 E. Adjustments of Salary Ranges ................................................................ 20 F. Salary and Benefits on Suspension ........................................................ 20 G. Salary Adjustments During Term of MOU .............................................. 20 Resolution 7587 SBMSMA 4 of 28 H. Non-PERSable Lump Sum Payment During Term of Memorandum of Understanding SECTION 22: LEAVES OF ABSENCE A. Authorized Leave of Absence Without Pay ............................................. 21 B. Bereavement Leave ............................................................................... 21 C. Military Leave of Absence ...................................................................... 21 D. Pregnancy Disability Leave of Absence ................................................. 22 E. Family Leave ........................................................................................... 22 F. Catastrophic Leave ................................................................................ 23 SECTION 23: MISCELLANEOUS A. Lay-off ..................................................................................................... 24 B. Physical Fitness Program SECTION 24: TERM .............................................................................................. 24 SECTION 25: APPEALS ....................................................................................... 24 SECTION 26: REOPENER .................................................................................... 24 SECTION 27: RATIFICATION ............................................................................... 24 Resolution 7587 SBMSMA 5 of 28 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION SECTION 1: RECOGNITION A. Pursuant to the provisions of Employee-Employer Relations Resolution 5242, as amended, the City of Seal Beach (hereinafter called the "City" and/or "Employer" and/or “Management” interchangeably) has recognized for the purpose of this Memorandum of Understanding (MOU), the Seal Beach Marine Safety Management Association (SBMSMA) an association of employees of the City of Seal Beach, hereinafter referred to as "Association". B. The City recognizes the Association as the representative of the employees in the classification and assignments set forth in Section 21.G below for the purpose of meeting its obligations under this MOU, the Meyers-Milias-Brown Act, Government Code Section 3500 et seq., when City rules, regulations, or laws affecting wages, hours and/or other terms and conditions of employment are amended or changed. C. The City agrees that the recognized representatives of Association not to exceed 3 in number shall be entitled to meet and confer with City during said recognized representatives' normal working hours without suffering any loss in pay while absent from the duties for such purpose. City also agrees that such representatives may utilize a total of not more than 3 hours per year without suffering any loss in pay for such absence for the purpose of meeting with employees who are members of the Association and/or other officers of the Association. D. City recognizes Association's right to appoint or elect representatives to meet and confer with City's management representatives on salaries, wages, and terms and conditions of employment. Association agrees to notify City in writing as to the identity of the representatives and of subsequent appointments, if any. Association and City agree that employees appointed or elected as Association representatives shall be required to work full time. E. It is recognized and agreed that no Association business and/or meetings will be conducted and/or attended by employees of City during their respective hours of duty and work unless specified herein. F. Representatives and/or officers of Association shall not interrupt the work of any employee of City at any time to conduct business or other matters connected with Association without prior consent of Management. Resolution 7587 SBMSMA 6 of 28 G. This document supersedes all prior Memoranda of Understanding and verbal agreements between the parties hereto. SECTION 2: CITY RIGHTS A. Rights/Responsibilities - This City reserves, retains and is vested with solely and exclusively, all rights of management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of management, as they are not abridged by this Agreement or by law, shall include but not be limited to, the following rights: 1. To manage the City generally and to determine the issues of policy. 2. To determine the existence or nonexistence of facts which are the basis of the management decision(s). 3. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish services. 4. To determine the nature, manner, means and technology and extent of services to be provided to the public. 5. To determine methods of financing. 6. To determine types of equipment or technology to be used. 7. To determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted. 8. To determine and change the number of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City. 9. To assign work to and schedule employees in accordance with any requirements set forth in this MOU, and to establish and change work schedules and assignments upon reasonable notice insofar as such changes do not conflict with this MOU. 10. To layoff employees from duties because of lack of work or funds, or under conditions where continued work would be ineffective or non-productive. Resolution 7587 SBMSMA 7 of 28 11. To establish and modify productivity and performance programs and standards. 12. To discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees for cause. 13. To determine minimum qualifications, skills abilities, knowledge, selection procedures and standards, job classifications and to reclassify employees in accordance with this MOU and applicable resolutions and codes of the City. 14. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with the MOU and applicable resolutions and codes of the City. 15. To determine policies, procedures and standards for selection, training and promotion of employees in accordance with this MOU and applicable resolutions and codes of the City. 16. To establish reasonable employee performance standards including but not limited to, quality and quantity standards and to require compliance therewith. 17. To maintain order and efficiency in its facilities and operation. 18. To establish and promulgate and/or modify rules and regulations to maintain order and safety and which are not in contravention with the Agreement. 19. To restrict the activity of an employee organization on municipal property and on municipal time except as set forth in this MOU. 20. To take any and all necessary action to carry out the mission of the City in emergencies. B. Where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of City Rights shall impact the wages, hours and other terms and conditions of employment of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU. SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE A. Health Insurance Coverage Resolution 7587 SBMSMA 8 of 28 1. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution. For calendar year 2024, CalPERS has established the minimum PEMHCA contribution at $157 per month per employee. 2. The City shall contribute an equal amount towards the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees. 3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the Association during negotiations. For employees participating in the City’s cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the cafeteria plan. Beginning January 1, 2024, the monthly flex dollar allowance shall be: For Employee only $ 1,1666.99/month For Employee and 1 dependent $ 1,803.38month For Employee and 2 or more dependents $ 2,332.12/month 4. A portion of the monthly flex dollar allowance is identified as the City’s contribution towards PEMHCA. Thus, for example, in calendar year 2024, an employee only monthly flex dollar allowance is $1,1666.99 of that $1,166.99; $157 has been designated by the City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be used in accordance with the terms of the City’s cafeteria plan. 5. Effective January 1, 2024, and every January 1st during the term of this agreement, the City shall increase the contribution amounts above by the average percentage of increase for basic plans published by CalPERS which sets health insurance premiums for the coverage year. 6. Employees meeting the waiver criteria and electing to waive enrollment in the City’s cafeteria plan are eligible to receive $350 per month beginning January 1, 2024 (upon showing proof of medical insurance coverage under an alternative plan). Election forms are available in the Human Resources. 7. Full-time employees covered by this MOU who have completed 30 days of uninterrupted service shall be enrolled in the cafeteria plan on the first day of the next succeeding month. 8. Employees who change classification from full-time to part-time provisional, hourly or seasonal shall not be eligible for participation in the cafeteria plan. Resolution 7587 SBMSMA 9 of 28 9. City shall not contribute to the cafeteria plan for any employee during any month the employee is on leave of absence without pay or who is absent from regular duties without authorization, for a full calendar month. City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers Compensation Insurance. B. Life Insurance Employees covered by this agreement shall receive a $50,000 term life insurance policy paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. C. Income Continuation Employees covered by this Agreement shall receive a policy to provide for income continuation of 66.67% of the employee's monthly salary, up to a maximum of $5,000 per month, whichever is lesser, paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. Said income continuation shall commence on the 3lst day of sickness or other bona fide absence or upon expiration of sick leave, whichever occurs later, and continuing thereafter while the employee is absent from work for a period of up to age 65. D. Annual Dermatological Screening The City will provide employees with one (1) annual dermatological (skin cancer) screening at no cost to employees. Screening will be provided by Beach Dermatology located at 500 Pacific Coast Highway, Suite 212 in Seal Beach and must be scheduled by the employee. Any treatment deemed necessary following the exam shall be scheduled by the employee through the employee’s provider of choice using the employee’s insurance. All medical billing for the screening services will be forwarded for payment to the City of Seal Beach by Beach Dermatology. SECTION 4: RETIREMENT HEALTH INSURANCE A. Employees covered by this Agreement shall have the option upon retirement, to continue participation in the City's health insurance program at the employee's expense. B. Employees in the Marine Safety Lieutenant classification, who were hired before January 1, 2008 by the City, and who retire after December 31, 2009, with 20 or more combined years of employment with the City shall, upon retirement, be Resolution 7587 SBMSMA 10 of 28 provided with individual medical insurance coverage. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided at the rate of (a) the average of the 2 lowest cost medical care plans offered by CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the retired employee becomes Medicare eligible, the City’s contribution will be capped at the rate of (a) the average of the 2 lowest cost Medicare supplement plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare supplement plan, whichever is greater. C. Employees in the Marine Safety Officer classification covered by this Agreement who were hired before April 13, 2009 by the City, have 20 or more combined years of employment with the City, have reached 55 years of age, and retire after December 31, 2010, shall be provided with individual medical insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided capped at the Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents medical insurance is identified as the City’s contribution towards PEMHCA. D. On or after January 1st 2008, the City shall contribute to the cost of medical coverage for each eligible retiree and dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution. E. In all cases, the City's contribution for eligible dependent coverage for retirees shall terminate with the death of the retiree. F. In the event an eligible retired employee resides in an area where the health plans provided by the City are not in effect, that retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution at time of retirement. SECTION 5: SICK LEAVE A. All full-time employees covered by this MOU shall accrue sick leave at the rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up to and including 520 hours. Except as otherwise provided in this MOU, no employee shall receive further accruals once the 520 hour maximum is reached. B. The Department Head may require employees to present proof of illness for sick leaves in excess of 3 working days. C. All employees in the Marine Safety Lieutenant classification, upon termination of employment with the City, all compensable leave hours will be paid to the employee at the employee's base rate of pay. Sick leave balances which Resolution 7587 SBMSMA 11 of 28 have not been converted to leave time will be paid to the employee upon termination at 25% of the employee's base rate of pay. D. All employees in the Marine Safety Officer classification except as otherwise provided, employees shall not be eligible for any payment for sick leave balances upon termination. E. Employees who are on authorized leaves of absence, without pay, shall not accrue sick leave hours during said leaves of absence. F. Sick leave balances may not be used to defer a disability retirement. SECTION 6: VACATION TIME A. Marine Safety Officers covered by this Agreement, have passed the employee probationary period (as defined in the Personnel Rules and Regulations, Section 6.01) shall be granted a vacation with pay of approximately 80 hours per year up to a maximum of approximately (160) hours per year. B. All employees in the Marine Safety Lieutenant classification who shall have at least three (3) years of continuous service shall be entitled to eight (8) additional hours of vacation for each year of full-time continuous service in excess of three (3) years. The vacation accrual schedule for mid-management employees is as follows: Years Service Vacation Hours Earned Maximum Hourly Accrual Rate / Pay Period Bi-Weekly Annual Vacation Hours Maximum Vacation Accrual 1 80 3.0769 80 160 2 80 3.0769 80 160 3 80 3.0769 80 160 4 88 3.3846 88 200 5 96 3.6923 96 200 6 104 4.0000 104 200 7 112 4.3044 112 200 8 120 4.6154 120 200 9 128 4.9231 128 240 10 136 5.2308 136 240 11 144 5.5385 144 240 12 152 5.8462 152 240 13 160 6.1538 160 240 C. All employees in the Marine Safety Officer classification who shall have at least (5) Years of continuous service, shall be entitled to eight (8) additional hours Resolution 7587 SBMSMA 12 of 28 of vacation per year of full-time continuous service for each year of service in excess of five (5) years up to a maximum of approximately 160 hours per year. D. The vacation accrual schedule is as follows: Years Service Vacation Hours Earned Maximum Hourly Accrual Rate / Pay Period Bi-Weekly Annual Vacation Hours 0-5 80 3.0769 80 6-14 120 4.6153 120 15-19 160 6.1538 160 20+ 200 7.6923 200 E. All employees in the Marine Safety Officer classification shall only be allowed to accrue a maximum of 200 hours of vacation. Once this maximum is reached, all further accruals will cease. Vacation accruals will recommence after the employee has taken vacation and the employee's accrued hours drop below the maximum. The maximum can only be exceeded with the approval of the City Manager in writing. F. Employees covered by this agreement considered as hourly, part-time and/or seasonal employees shall not be eligible for paid vacations. G. Employees covered by this agreement who are on leaves of absence, without pay, shall not accrue vacation leave hours during said leaves of absence. H. All employees in the Marine Safety Officer classification not more than twice in each fiscal year, who have completed at least 1 year of continuous service shall, upon request, receive compensation for up to 160 hours of available accrued vacation time, but no more than 80 hours per occurance. I. Employees are encouraged to use at least the amount of vacation hours earned each fiscal year. Those employees who have been credited with preexisting leave hours are expected to use a portion of the excess as leave time, in addition to the new vacation hours, each year until the maximum accrual is met. The City recognizes that a number of long-term employees have accrued substantially more leave time than shorter-term employees, and that it will likely take them significantly longer to achieve this goal. It is the intent of this section to balance the personal interests of the employee with the financial concerns of the City; as such, significant progress toward reaching the maximum accrual amounts may be deemed a success. J. Vacation leave time shall not be approved until such time as it has been earned, unless prior, special arrangements have been made with the City Resolution 7587 SBMSMA 13 of 28 Manager. Vacation leave shall be requested by the employee prior to the start of the vacation leave period. Such vacation leave to be taken shall be subject to the prior approval of the Department Head, or designee, subsequent to consideration of the departmental workload and other staffing considerations, such as but not limited to, the previously approved vacation schedule of other employees, sick leave and position vacancies. K. All employees in the Marine Safety Lieutenant classification not more than twice in each fiscal year, who has completed at least one year of continuous service shall, upon request, receive compensation for up to 160 hours of available accrued vacation time, but no more than 80 hours per occurrence. SECTION 7: HOLIDAYS A. The City agrees to grant all full-time Marine Safety Association employees a full shift pay for each holiday recognized by City. Every full-time employee of the City shall be granted the following holidays with pay: Holiday Date New Year’s Day January 1st Martin Luther King Day 3rd Monday in January Presidents’ Day 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4th Labor Day First Monday in September Veteran’s Day November 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Day Christmas Eve December 24th Christmas Day December 25th *(2) Floating Holidays (discretion of employee) Total of 13 holidays annually *Floating Holidays must be taken during each fiscal year (July 1st through June 30th). Floating holidays must be approved in advance by the Department Head. B. When a holiday falls on a full-time employee’s regularly scheduled day off, the employee shall receive compensatory time off for a full shift in lieu of holiday pay, in keeping with other provisions of this MOU. Example: Employee A normally works a 4/10 schedule, and a holiday falls on a Monday, Tuesday, Wednesday, Thursday, or Resolution 7587 SBMSMA 14 of 28 Friday, Employee A would receive (10) hours of compensatory time off. C. A Marine Safety Lieutenant and Marine Safety Officer who is required to work on a holiday shall receive pay computed at 1½ times the employees' base hourly rate for the number of hours actually worked. Example: Employee A works 6 hours on Christmas Day. Employee A would earn pay computed as follows: Hours Pay Rate Full-shift holiday pay base hourly rate 6 hours work pay regular hourly rate or overtime hourly rate, as applicable under MOU SECTION 8: RETIREMENT A. The retirement program provided by the City shall consist of a pooled Public Employee's Retirement System (PERS) plan, which includes the following Government Code provisions: Section 20042 One Year Final Compensation Section 20965 Credit of Unused Sick Leave Section 21024 Military Service Credit B. All employees incumbent in the Marine Safety Association shall participate in the 3% @ 50 formula plan for Local Safety Members. C. The Marine Safety Association “PERS Classic” employees shall pay 9% of their CALPERS required contribution of their compensation earnable. D. New employees/members hired on or after January 1, 2013 as defined by The Public Employees’ Pension Reform Act (PEPRA) will be hired at the retirement formula in accordance with the PEPRA and other legislation. SECTION 9: OVERTIME AND CALL OUT PAY A. The following section pertains to the position of Marine Safety Lieutenant and Marine Safety Officer: Resolution 7587 SBMSMA 15 of 28 1. If work beyond normal workday, workweek or work period is required, the employee who may be asked to perform such overtime shall be notified of the apparent need for such overtime as soon as practicable prior to when the overtime is expected to begin. 2. Call out and overtime pay shall be paid at the rate of time and one-half the hourly rate. Minimum "call out" time (when returning to work) shall be 3 hours. Call out time shall start when employee is called to service. 3. Overtime will be computed by dividing the employee's regular monthly salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to be submitted and computed with the regular payroll. 4. Notwithstanding any provision of this Section, the employee shall be entitled to select either compensated overtime or compensatory time off subject to budget limitations, departmental rules and regulations, and Section 11 of this MOU. SECTION 10: COMPENSATORY TIME OFF (CTO) The maximum (cap) of CTO is (120) hours. Compensatory Time earned in excess of (120) hours will be paid as overtime during the pay period accrued. SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee, when so appointed, must perform the duties and assume the responsibilities of the higher classification for (80) consecutive working hours and shall be paid according to the step in the assigned salary range of the new position which is a minimum of 5% higher than the salary received before the provisional appointment (not to exceed the top step). B. When necessary and in the best interest of the City, the City Manager may provisionally assign an employee to a higher level of duty and responsibility than provided for in the employee's assigned classification which is not otherwise a part of an adopted classification. In the case of such an assignment, the employee must perform the higher level of duties for (80) consecutive working hours; thereafter the employee shall receive additional compensation of 5% so long as the assignment is authorized by the City Manager. SECTION 12: SENIORITY BONUS Employees who have achieved (10) years of uninterrupted employment with the City shall receive a 5% increase in base salary effective on the l0th anniversary of their employment. Resolution 7587 SBMSMA 16 of 28 Twenty (20) Years of Service – Employees who have achieved twenty (20) years of uninterrupted employment with the City shall receive a 2.5% increase in base salary (above the previously-described 5% increase at 10 years) effective on the 20th anniversary of their employment. SECTION 13: AUTOMOBILES AND MILEAGE Employees covered by this MOU, utilizing their privately-owned automobiles for City business on a non-regular basis, shall be entitled to reimbursement for costs incurred at the mileage rate established by the Internal Revenue Service (IRS). SECTION 14: ADMINISTRATIVE LEAVE Effective the 1st payroll period in July 2024, and every July thereafter: A. The Marine Safety Lieutenant and Marine Safety Officers shall be entitled to the equivalent of (2) work days of administrative leave during each fiscal year. B. Administrative leave hours may not be carried forward to succeeding years nor may they be turned in for cash value. SECTION 15: LIMITATIONS A. No employee who is receiving Workers’ Compensation payments and benefits is eligible to receive overlapping benefits (except life insurance) stated in this MOU. B. City shall not make any monthly payments for premiums for any insurance benefit listed in this MOU, or uniform allowance, supplemental pay of any type and/or type of bonus on behalf of or to any employee who has been absent without authorization during entire said month or for any employee who has terminated for any reasons whatsoever or who is on leave of absence without pay of who is suspended from duties without pay for the entire said month. SECTION 16: DEFERRED COMPENSATION For the classification of Marine Safety Lieutenant and Marine Safety Officer, the City shall contribute the amount of $40 per payroll period into a deferred compensation program SECTION 17: BILINGUAL COMPENSATION A. Upon the recommendation of a department director, the City Manager may award a bilingual compensation bonus of $52.50 per payroll period to those employees in positions determined to require bilingual skills. Resolution 7587 SBMSMA 17 of 28 B. The City Manager shall require the taking of competency tests to certify the employee as eligible for bilingual compensation based on the employee's proficiency in speaking the language determined to be required. Such certification shall be a condition precedent to qualifying for bilingual pay. SECTION 18: CERTIFICATION PAY A. Employees who possess and maintain valid certification for CPR/AED/First Aid Instructor, as well as a minimum certification of EMT, will receive $500 annually the first pay day in November. B. Employees who possess a United States Coast Guard (USCG) Captains License will receive $250 annually the first pay day in November. SECTION 19: WORK SCHEDULE A. At the discretion of the City Manager, work schedules may be altered as needed to accommodate service demand levels of the residents of the City of Seal Beach. SECTION 20: TUITION REIMBURSEMENT A. Higher Education Degree Programs – Marine Safety Association employees attending accredited community colleges, universities, and trade schools for the purpose of obtaining a higher education degree may apply for reimbursement of tuition, books, student fees and parking. Reimbursement is capped at the tuition rate of the Cal State University system for up to 2 semesters of full-time, undergraduate enrollment each calendar year. B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager. Example: Employee A attends California State University, Long Beach, for the Spring 2021 semester and completes 2 (3-unit) undergraduate courses with a grade of “C” or better. The tuition reimbursement would be calculated as follows: 2020/2021 State University Tuition $1,665.00 (0-6 units) Required University Fees $ 554.00 (approx.) Parking $ 175.00 Books $ 535.00 (approx.) Resolution 7587 SBMSMA 18 of 28 TOTAL $2,929.00 SECTION 21: COMPENSATION PLAN A. Basic Compensation Plan 1. Employees covered by this MOU shall be included under the Basic Compensation Plan. Every classification under this Plan shall be assigned a salary range adopted by the City Council. The salary schedule shall consist of 5 steps within each range. 2. The first step is a minimum rate and is normally the hiring rate for the classification. An employee may be assigned, upon appointment, to other than the normal entering salary step within the assigned range upon the recommendation of the Department Head and with the approval of the City Manager when it is decided that such action is in the best interests of the City. 3. The second step, B step, is a merit adjustment which may be given at the end of the probationary period subject to the recommendation of the Department Head and with the approval of the City Manager. 4. The third, fourth and fifth steps are merit adjustments to encourage an employee to improve their work and to recognize increased skill on the job. Employees are normally eligible for these adjustments at any time after the completion of (1) year of service at the preceding step. Each adjustment shall be made subject to the recommendation of the Department Head and with the approval of the City Manager. B. Advancement within Salary Ranges 1. In order to properly compensate an employee, advancement in salary shall be based on merit. 2. Advancement in salary shall not be automatic, but shall depend upon increased service value of the employee to the City. 3. The Department Head and/or the employee's immediate supervisor shall be responsible to evaluate an employee fairly in an unbiased fashion for the determination of job performance. Advancement shall be made only upon recommendation of the Department Head and with the approval of the City Manager. 4. An employee should be reviewed at least once every (12) months from the effective date of his last performance evaluation, special performance advancement or promotion. Nothing contained herein shall restrict the Department Head from denying the increase after evaluation, nor shall it prevent him from Resolution 7587 SBMSMA 19 of 28 recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated. C. Salary Increases 1. Promotional Appointment - When an employee is promoted to a position with a higher salary range, the employee shall be compensated at a step of the salary range assigned to the new position that is closest to providing a 5% salary increase over the base salary received immediately prior to promotion. 2. Temporary Appointment - Employees assigned, in an acting capacity, to a higher classification than the employees' present classification for a period of not less than 80 consecutive working hours shall be entitled to temporary appointment pay. In addition, employees who are assigned by the department director in writing to regularly scheduled acting assignments of less than 80 hours shall also be entitled to temporary appointment pay. Temporary appointment pay will be retroactive to the first hour served in the higher classification and shall be paid at a rate equal to the first step of the higher classification but in no event shall temporary appointment pay be less than 5% more of the employee's current rate. D. Salary Decreases - In the case of a demotion of an employee to a classification with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new classification as recommended by the Department Head with the approval of the City Manager. The employee shall retain his previous anniversary date. E. Adjustments of Salary Ranges - When a salary range for a given classification is revised upward or downward, the incumbents of positions and classifications affected shall have their existing salary adjusted to the same step in the new salary range and their anniversary date shall not be changed. F. Salary and Benefits on Suspension - During suspension from the City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except he shall not forfeit his medical health plans, including dental, retirement plan, disability insurance or life insurance. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment for loss of income and benefits during the period of suspension. G. Salary Adjustments During Term of MOU 1. The salary schedule for each position classification affected is hereby determined and established upon adoption by City Council Salary increases are as follows: Resolution 7587 SBMSMA 20 of 28 First full pay period in July 2024 : - Employees shall receive a 2.5% cost of living adjustment. First full pay period in July:2025 : – Employees shall receive a 2.5% cost of living adjustment. Mid-Management Grade Job Classifications 31 Marine Safety Lieutenant Technical Grade Job Classifications 23 Marine Safety Officer H. Non-PERSable Lump Sum Payment During Term of Memorandum of Understanding The City shall make one (1) Non- PERSable lump sum payment of $4,000 (subject to applicable withholdings) prior to January 1, 2025 to each bargaining unit member employed by the City. SECTION 22: LEAVES OF ABSENCE A. Authorized Leave of Absence Without Pay 1. Upon the Department Head's recommendation and approval of the City Manager, an employee may be granted a level of absence without pay in cases of an emergency or where such absence would not be contrary to the best interest of the City, for a period not to exceed 180 working days. 2. Upon written request of the employee, the City Manager may grant a leave of absence, with or without pay, for a period not to exceed (1) year. 3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted. Failure on the part of the employee to report promptly at such leave's expiration and receipt of notice to return to duty shall be cause for discharge. 4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except an employee shall receive their monthly flex dollar allowance and the City, as specifically Resolution 7587 SBMSMA 21 of 28 provided for in this MOU, shall contribute to the employee’s disability insurance plan, and life insurance plan for the first (30) days of leave of absence. B. Bereavement Leave The City agrees to provide 40 hours bereavement leave with pay for death in the immediate family. The bereavement leave shall not be chargeable to or accumulated as sick time or leave time. “Immediate family” is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, step-mother, step-father, step-child, mother-in-law, father-in-law, domestic partner-in-law or dependent relative living with the employee. C. Military Leave of Absence 1. Military leave shall be granted in accordance with the provisions of Federal and State law. All employees entitled to military leave shall give the Department Head an opportunity within the limits of military regulations to determine when such leave shall be taken. Whenever possible, the employee involved shall notify the Department Head of such leave request (10) working days in advance of the beginning of the leave. 2. In addition to the provisions of State law, the City shall continue to provide eligible employees on military leave, the monthly flex dollar allowance under the cafeteria plan and disability and life insurance and retirement (if applicable) for the first (3) months of military leave. During said period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance (if applicable). 3. After the first (3) months of military leave, the employee may continue said benefits at his cost. D. Pregnancy Disability Leave of Absence 1. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. The employee may elect to take a lesser period of leave. 2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay. E. Family Leave - Upon a demonstration of need and subject to the following conditions, an employee may take leave or unpaid leave to care for his newborn Resolution 7587 SBMSMA 22 of 28 infant, whether through parentage or adoption, or to care for a seriously ill or injured member of the employees "immediate family" as defined in Section 6. 1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City. 2. Requests for family leave must be submitted in writing to the employee's supervisor at the earliest possible date proceeding the time when the leave is to begin. 3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with the provisions of State and Federal Family Leave laws. 4. In the event of an extended family leave, the employee may be required to periodically report on the status of the situation giving rise to the leave. 5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager consistent with the provisions of State and Federal Family Leave laws. F. Catastrophic Leave - The purpose of the Catastrophic Leave Pool is to enable full time employees to receive and donate vacation, administrative leave, and CTO leave credits on an hour for hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or a member of their immediate family. Sick Leave is excluded from this program. The following conditions shall apply to Catastrophic Leave: 1. Catastrophic Leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident. 2. The leave pool shall be administered by the Finance Department. 3. Employees must be in regular full-time appointed positions to be eligible to receive catastrophic leave. 4. Employees receiving Long-Term Disability payments are excluded from receiving catastrophic leave under this program. 5. All donations are to be confidential, between the donating employee and the Finance Department. 6. Employees donating to the pool must have 40 hours of paid leave available after making a donation. Resolution 7587 SBMSMA 23 of 28 7. Donating employees must sign an authorization, including specifying the specific employee to be the recipient of the donation. 8. Donations will be subject to applicable tax laws. 9. The availability of Catastrophic Leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee. 10. Catastrophic Leave due to illness or injury of an immediate family member may require medical justification as evidenced by a Physician’s Statement that the presence of the employee is necessary. 11. Catastrophic Leave due to the illness or injury of the employee will require medical justification as evidenced by a Physician’s Statement as to the employee’s condition. SECTION 23: HEALTH WELLNESS PROGRAM (Medical Maintenance Examination & Wellness Program) The City shall reimburse Employee, as a medical benefit, for Employee’s actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $550 per fiscal year for the Marine Safety Lieutenant and in an amount not to exceed $450 for the Marine Safety Officer classification, subject to the City’s normal reimbursement processes and requirements such expenses. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager or his/her designee. SECTION 24: MISCELLANEOUS A. Layoff: The City is to give Association (45) days prior notice before the effective date of any layoffs. During this (45) day period, the City will, upon request, meet and confer on the impact of the layoffs. B. Physical Fitness Program: The physical fitness program is a voluntary program for all union members utilizing vacation hours as compensation for achieving goals within this program. The details of this program are attached as Exhibit A to this MOU. SECTION 25: TERM The Memorandum of Understanding shall remain in full force and effect from July 1, 2024 until midnight June 30, 2026. Resolution 7587 SBMSMA 24 of 28 SECTION 26: APPEALS A. Employees shall be allowed to appeal written reprimands to the Personnel Officer. Such appeals shall be filed within (14) calendar days. The decision of the Personnel Office shall be final. B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation shall be interpreted to allow employees to present evidence showing the absence was for good cause and that circumstance prevented them from contacting the City. SECTION 27: REOPENER City and Association agrees to reconvene during the terms of this MOU to discuss all fringe benefits, including but not limited to health plans, the implementation of HSA or HRA programs for employee and retiree medical premiums. SECTION 28: RATIFICATION This Memorandum of Understanding is subject to approval and adoption by the City Council and ratification by the required number of the duly authorized representatives of the Association. Following such approval and adoption, the Memorandum of Understanding shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council. IN WITNESS HEREOF, the parties have hereto caused this Memorandum of Understanding to be executed Date: Patrick Gallegos, Interim City Manager CITY OF SEAL BEACH MARINE SAFETY ASSOCIATION: Date: Nick Bolin, President Date: Jeremy Jenks, Vice President Date: Carlos Rubio, Teamsters Resolution 7587 SBMSMA 25 of 28 EXHIBIT A SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION PHYSICAL FITNESS PROGRAM NOTE: The specific months for the testing is at the discretion of the City Manager or their designee. INTRODUCTION The physical fitness program is a voluntary program for all members of the Seal Beach Marine Safety Management Association (SBMSMA). SBMSMA members may receive up to twenty (20) hours of vacation time by meeting the requirements of the test at the end of each six ( 6) month period. The maximum time each member will be able to achieve is up to forty ( 40) vacation hours earned annually for as long as the member continues successfully in the program. ENROLLMENT To start the program, each member must contact the Physical Fitness Committee and advise them of your intent. Each member participating will be tested every six months, specifically in the months of December and June. A minimum level has been established for each test. Participants will have to move up a category or reach the maintenance level indicated on each test by age group. At one ( 1) year and six ( 6) months, participants will be required to be at the maintenance level. Once the maintenance level has been attained, participants will have to maintain that level on subsequent tests. Testing each six ( 6) month period will validate the awarding of vacation time. Testing may be conducted during on -duty hours at the Beach Supervisor discretion. The Physical Fitness Committee will perform the testing. ALLOCATION OF HOURS Employees will be awarded five hours for successfully completing each test as set forth in TESTING below. No employee shall receive any hours if they fail to meet the minimum standards for at least two of the four tests. PHYSICAL FITNESS COMMITTEE The Physical Fitness Committee shall be comprised of board members of the SBMSMA . The Physical Fitness Committee is established to retain administrative control over the program. All committee members shall be active participants in the program. The committee will be responsible for examining problems and disputes that arise from the administration of the program. The committee will be the formal arbitrators on these matters. REQUIRED TEST The physical fitness needs of Marine Safety Lifeguards fall into two areas: Cardio Fitness and Strength. The tests outlined below may be modified by the Physical Fitness Committee as necessary. The tests used in this program to evaluate fitness in these areas will be: Cardio fitness: 500 meter swim (October) 1 Mile Beach Run/Pier Swim (April) Strength: Push-up Sit-ups Pull-ups Resolution 7587 SBMSMA 26 of 28 MEDICAL COVERAGE Participation in the program will be on a voluntary basis. Any exercise workouts done under this program, i.e. weightlifting, contact sports, running, etc. would not be covered for benefits under Workers Compensation, the city will not provide blanket coverage for any injury which could conceivably be claimed under the pretext of participation in the Physical Fitness Program. CARDIO FITNESS TESTS – 500-meter pool swim (October) Members will swim 500 meters in a pool measured in yards or meters. The time needed to cover the distance is recorded and compared to the standards on the chart. This test is an excellent indication of the condition of the heart and lungs as it measures one’s aerobic capacity or the ability of the heart and lungs to utilize oxygen. Excellent 9:15-9:30 Good 9:31-10:00 Fair 10:01-10:30 Poor 10:31-11:00 Very Poor Above 11:01 Maintenance Level Below 10:00 Minimum Level 11:00 CARDIO FITNESS TESTS – 1 mile beach run and a pier swim (June) Members will run 1 mile on the beach and swim 1 length of the pier. The time needed to cover the distance is recorded and compared to the standards on the chart. This test is an excellent indication of the condition of the heart and lungs as it measures one’s aerobic capacity or the ability of the heart and lungs to utilize oxygen. Excellent 18:00-20:30 Good 20:31-23:00 Fair 23:01-25:00 Poor 25:01-26:00 Very Poor Above 26:00 Maintenance Level Below 25:00 Minimum Level 26:00 STRENGTH TESTS The body is maintained in a prone position supported by straight arms on the hands and toes. A partner places his/her fist on the ground below the member’s chest. The member must always keep his/her back straight and from the up position, lower him/ herself to the floor until his chest touches his/her partner' s hand and then push to the up position again. The member can rest in the up position. The total number of correct push- ups are recorded and compared to the standards on the chart. This test measures muscle endurance and a low level of muscle endurance indicates an inefficiency in movement and a poor capacity to perform work. This test measures mainly the muscles of both the Resolution 7587 SBMSMA 27 of 28 chest and upper arm which are important in physical demands of swimming and propelling surf craft. Under 30 30-39 40-49 50+ Excellent 43- 37- 30- 25+ Good 28-42 23-36 20-29 17-24 Fair 20-27 17-22 15-19 12-16 Poor 5-19 3-16 2-14 2-11 Very Poor 4-below 2-below 2-below 1-below Maintenance Level 40 35 25 18 Minimum Level 18 15 13 11 PULL- UPS Members will hold the bar with the palms away from the body. Arms are extended out straight in the beginning position with the feet off the ground. Members must pull his/her body up to a position where his chin is above the bar for one repetition; the total number of correct pull- ups are recorded and compared to the standards on the chart. In lieu of pull- ups, members may choose to do the " Lat Pull". Members are required to pull down seventy percent ( 70%) of their body weight ten ( 10) times to achieve maintenance level. Under 30 30-39 40-49 50+ Excellent 9 & above 7 & above 6 & above 5 & above Good 8 6 5 4 Fair 6-7 4-5 3-4 2-3 Poor 5 3 2 1 Very Poor 4 & below 2 & below 1 & below 0 Maintenance Level 8 6 5 4 Minimum Level 5 3 2 1 SIT- UPS Members start by lying on his/ her back, knees bent, heels flat on the floor and arms folded across their chest. A partner holds the feet down. In the up position, the officer will touch his/her elbows to his knees and then return to the starting position, not placing their shoulder blades on the ground before starting the next sit- up. This is continuous exercise, no resting. The total number of correct sit- ups is recorded and compared to the standards on the chart. This test measures muscular endurance in the abdominal muscle group, an area of great concern to the sedentary individual. Much evidence exists of the correlation between poor abdominal muscle development, excessive fat tissue and lower back problems. Under 30 30-39 40-49 50+ Excellent 51 & above 45 & above 40 & above 36 & above Good 40-50 34-44 27-39 23-39 Fair 35-39 29-33 20-26 16-22 Poor 24-34 18-28 7-19 6-15 Very Poor 23-below 17-below 6-below 5-below Maintenance Level 45 40 35 30 Resolution 7587 SBMSMA 28 of 28 Minimum Level 30 25 20 15 Seal Beach Marine Safety Management Association (SBMSMA) MEMORANDUM OF UNDERSTANDING Resolution XXXX7179 - Exhibit BA ADOPTED: December 12, 2024July 1, 2021 EXPIRES: June 30, 20264 TABLE OF CONTENTS SECTION 1: RECOGNITION ....................................................................................5 Resolution XXXX7179 SBMSMA 2 of 25 SECTION 2: CITY RIGHTS Rights/Responsibilities.....................................................................................6 SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE A. Health Insurance Coverage........................................................................8 B. Life Insurance .............................................................................................9 C. Income Continuation..............................................................................9 D. Annual Dermatological Screening .........................................................9 SECTION 4: RETIREMENT HEALTH INSURANCE .............................................10 SECTION 5: SICK LEAVE ......................................................................................11 SECTION 6: VACATION TIME ...............................................................................11 SECTION 7: HOLIDAYS .........................................................................................13 SECTION 8: RETIREMENT ....................................................................................15 SECTION 9: OVERTIME AND CALL OUT PAY....................................................15 SECTION 10: COMPENSATORY TIME OFF ........................................................16 SECTION 11: PROVISIONAL APPOINTMENTS...................................................16 SECTION 12: SENIORITY BONUS ........................................................................16 SECTION 13: AUTOMOBILES AND MILEAGE ....................................................16 Resolution XXXX7179 SBMSMA 3 of 25 SECTION 14: ADMINISTRATIVE LEAVE..............................................................16 SECTION 15: LIMITATIONS...................................................................................17 SECTION 16: DEFERRED COMPENSATION.......................................................17 SECTION 17: BILINGUAL COMPENSATION.......................................................17 SECTION 18: CERTIFICATION PAY ……………………………………………...17 SECTION 19: WORK SCHEDULE .........................................................................18 SECTION 20: TUITION REIMBURSEMENT..........................................................18 SECTION 21: COMPENSATION PLAN A. Basic Compensation Plan........................................................................18 B. Advancement within Salary Ranges ........................................................19 C. Salary Increases.......................................................................................19 D. Salary Decreases.....................................................................................20 E. Adjustments of Salary Ranges.................................................................20 F. Salary and Benefits on Suspension .........................................................20 G. Salary Adjustments During Term of MOU...............................................20 SECTION 22: LEAVES OF ABSENCE A. Authorized Leave of Absence Without Pay..............................................21 B. Bereavement Leave ................................................................................21 C. Military Leave of Absence.......................................................................21 Resolution XXXX7179 SBMSMA 4 of 25 D. Pregnancy Disability Leave of Absence .................................................22 E. Family Leave ............................................................................................22 F. Catastrophic Leave ..................................................................................23 SECTION 23: MISCELLANEOUS A.Lay-off.......................................................................................................24 B.Physical Fitness Program SECTION 24: TERM................................................................................................24 SECTION 25: APPEALS.........................................................................................24 SECTION 26: REOPENER......................................................................................24 SECTION 27: RATIFICATION ................................................................................24 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION SECTION 1: RECOGNITION A. Pursuant to the provisions of Employee-Employer Relations Resolution 5242, as amended, the City of Seal Beach (hereinafter called the "City" and/or "Employer" and/or “Management” interchangeably) has recognized for the purpose of this Memorandum of Understanding (MOU), the Seal Beach Marine Safety Management Association (SBMSMA) an association of employees of the City of Seal Beach, hereinafter referred to as "Association". B. The City recognizes the Association as the representative of the employees in the classification and assignments set forth in Section 21.G below for the purpose of meeting its obligations under this MOU, the Meyers-Milias-Brown Act, Government Code Section 3500 et seq., when City rules, regulations, or laws Resolution XXXX7179 SBMSMA 5 of 25 affecting wages, hours and/or other terms and conditions of employment are amended or changed. C. The City agrees that the recognized representatives of Association not to exceed 3 in number shall be entitled to meet and confer with City during said recognized representatives' normal working hours without suffering any loss in pay while absent from the duties for such purpose. City also agrees that such representatives may utilize a total of not more than 3 hours per year without suffering any loss in pay for such absence for the purpose of meeting with employees who are members of the Association and/or other officers of the Association. D. City recognizes Association's right to appoint or elect representatives to meet and confer with City's management representatives on salaries, wages, and terms and conditions of employment. Association agrees to notify City in writing as to the identity of the representatives and of subsequent appointments, if any. Association and City agree that employees appointed or elected as Association representatives shall be required to work full time. E. It is recognized and agreed that no Association business and/or meetings will be conducted and/or attended by employees of City during their respective hours of duty and work unless specified herein. F. Representatives and/or officers of Association shall not interrupt the work of any employee of City at any time to conduct business or other matters connected with Association without prior consent of Management. G. This document supersedes all prior Memoranda of Understanding and verbal agreements between the parties hereto. SECTION 2: CITY RIGHTS A.Rights/Responsibilities - This City reserves, retains and is vested with solely and exclusively, all rights of management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of management, as they are not abridged by this Agreement or by law, shall include but not be limited to, the following rights: 1. To manage the City generally and to determine the issues of policy. 2. To determine the existence or nonexistence of facts which are the basis of the management decision(s). Resolution XXXX7179 SBMSMA 6 of 25 3. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish services. 4. To determine the nature, manner, means and technology and extent of services to be provided to the public. 5. To determine methods of financing. 6. To determine types of equipment or technology to be used. 7. To determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted. 8. To determine and change the number of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City. 9. To assign work to and schedule employees in accordance with any requirements set forth in this MOU, and to establish and change work schedules and assignments upon reasonable notice insofar as such changes do not conflict with this MOU. 10. To layoff employees from duties because of lack of work or funds, or under conditions where continued work would be ineffective or non-productive. 11. To establish and modify productivity and performance programs and standards. 12. To discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees for cause. 13. To determine minimum qualifications, skills abilities, knowledge, selection procedures and standards, job classifications and to reclassify employees in accordance with this MOU and applicable resolutions and codes of the City. 14. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with the MOU and applicable resolutions and codes of the City. 15. To determine policies, procedures and standards for selection, training and promotion of employees in accordance with this MOU and applicable resolutions and codes of the City. 16. To establish reasonable employee performance standards including but not limited to, quality and quantity standards and to require compliance therewith. Resolution XXXX7179 SBMSMA 7 of 25 17. To maintain order and efficiency in its facilities and operation. 18. To establish and promulgate and/or modify rules and regulations to maintain order and safety and which are not in contravention with the Agreement. 19. To restrict the activity of an employee organization on municipal property and on municipal time except as set forth in this MOU. 20. To take any and all necessary action to carry out the mission of the City in emergencies. B. Where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of City Rights shall impact the wages, hours and other terms and conditions of employment of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU. SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE A.Health Insurance Coverage 1. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution. For calendar year 20214, CalPERS has established the minimum PEMHCA contribution at $143 157XXXX per month per employee. 2. The City shall contribute an equal amount towards the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees. 3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the Association during negotiations. For employees participating in the City’s cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the cafeteria plan. Beginning January 1, 20214, the monthly flex dollar allowance shall be: For Employee only $ 941.171,1666.99/month For Employee and 1 dependent $ 1454.411,803.38month For Employee and 2 or more dependents $ Resolution XXXX7179 SBMSMA 8 of 25 2,332.121880.83/month 4. A portion of the monthly flex dollar allowance is identified as the City’s contribution towards PEMHCA. Thus, for example, in calendar year 20214, an employee only monthly flex dollar allowance is $1,1666.99941.17 of that $1,166.99941.17; $157143 has been designated by the City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be used in accordance with the terms of the City’s cafeteria plan. 5. Effective January 1, 20214, and every January 1st during the term of this agreement, the City shall increase the contribution amounts above by the average percentage of increase for basic plans published by CalPERS which sets health insurance premiums for the coverage year. 6. Employees meeting the waiver criteria and electing to waive enrollment in the City’s cafeteria plan are eligible to receive $350 per month beginning January 1, 20241 (upon showing proof of medical insurance coverage under an alternative plan). Election forms are available in the Human Resources. 7. Full-time employees covered by this MOU who have completed 30 days of uninterrupted service shall be enrolled in the cafeteria plan on the first day of the next succeeding month. 8. Employees who change classification from full-time to part-time provisional, hourly or seasonal shall not be eligible for participation in the cafeteria plan. 9. City shall not contribute to the cafeteria plan for any employee during any month the employee is on leave of absence without pay or who is absent from regular duties without authorization, for a full calendar month. City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers Compensation Insurance. B.Life Insurance Employees covered by this agreement shall receive a $50,000 term life insurance policy paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. C.Income Continuation Employees covered by this Agreement shall receive a policy to provide for income continuation of 66.67% of the employee's monthly salary, up to a maximum of $5,000 per month, whichever is lesser, paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next Resolution XXXX7179 SBMSMA 9 of 25 succeeding month. Said income continuation shall commence on the 3lst day of sickness or other bona fide absence or upon expiration of sick leave, whichever occurs later, and continuing thereafter while the employee is absent from work for a period of up to age 65. D.Annual Dermatological Screening The City will provide employees with one (1) annual dermatological (skin cancer) screening at no cost to employees. Screening will be provided by Beach Dermatology located at 500 Pacific Coast Highway, Suite 212 in Seal Beach and must be scheduled by the employee. Any treatment deemed necessary following the exam shall be scheduled by the employee through the employee’s provider of choice using the employee’s insurance. All medical billing for the screening services will be forwarded for payment to the City of Seal Beach by Beach Dermatology. SECTION 4: RETIREMENT HEALTH INSURANCE A. Employees covered by this Agreement shall have the option upon retirement, to continue participation in the City's health insurance program at the employee's expense. B. Employees in the Marine Safety Lieutenant classification, who were hired before January 1, 2008 by the City, and who retire after December 31, 2009, with 20 or more combined years of employment with the City shall, upon retirement, be provided with individual medical insurance coverage. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided at the rate of (a) the average of the 2 lowest cost medical care plans offered by CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the retired employee becomes Medicare eligible, the City’s contribution will be capped at the rate of (a) the average of the 2 lowest cost Medicare supplement plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare supplement plan, whichever is greater. C. Employees in the Marine Safety Officer classification covered by this Agreement who were hired before April 13, 2009 by the City, have 20 or more combined years of employment with the City, have reached 55 years of age, and retire after December 31, 2010, shall be provided with individual medical insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided capped at the Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents medical insurance is identified as the City’s contribution towards PEMHCA. Resolution XXXX7179 SBMSMA 10 of 25 D. On or after January 1st 2008, the City shall contribute to the cost of medical coverage for each eligible retiree and dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution. E. In all cases, the City's contribution for eligible dependent coverage for retirees shall terminate with the death of the retiree. F. In the event an eligible retired employee resides in an area where the health plans provided by the City are not in effect, that retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution at time of retirement. SECTION 5: SICK LEAVE A. All full-time employees covered by this MOU shall accrue sick leave at the rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up to and including 520 hours. Except as otherwise provided in this MOU, no employee shall receive further accruals once the 520 hour maximum is reached. B. The Department Head may require employees to present proof of illness for sick leaves in excess of 3 working days. C. All employees in the Marine Safety Lieutenant classification, upon termination of employment with the City, all compensable leave hours will be paid to the employee at the employee's base rate of pay. Sick leave balances which have not been converted to leave time will be paid to the employee upon termination at 25% of the employee's base rate of pay. D. All employees in the Marine Safety Officer classification except as otherwise provided, employees shall not be eligible for any payment for sick leave balances upon termination. E. Employees who are on authorized leaves of absence, without pay, shall not accrue sick leave hours during said leaves of absence. F. Sick leave balances may not be used to defer a disability retirement. SECTION 6: VACATION TIME A.Marine Safety Officers covered by this Agreement, have passed the employee probationary period (as defined in the Personnel Rules and Regulations, Resolution XXXX7179 SBMSMA 11 of 25 Section 6.01) shall be granted a vacation with pay of approximately 80 hours per year up to a maximum of approximately (160) hours per year. B. All employees in the Marine Safety Lieutenant classification who shall have at least three (3) years of continuous service shall be entitled to eight (8) additional hours of vacation for each year of full-time continuous service in excess of three (3) years. The vacation accrual schedule for mid-management employees is as follows: Years Service Vacation Hours Earned Maximum Hourly Accrual Rate / Pay Period Bi-Weekly Annual Vacation Hours Maximum Vacation Accrual 1 80 3.0769 80 160 2 80 3.0769 80 160 3 80 3.0769 80 160 4 88 3.3846 88 200 5 96 3.6923 96 200 6 104 4.0000 104 200 7 112 4.3044 112 200 8 120 4.6154 120 200 9 128 4.9231 128 240 10 136 5.2308 136 240 11 144 5.5385 144 240 12 152 5.8462 152 240 13 160 6.1538 160 240 C. All employees in the Marine Safety Officer classification who shall have at least (5) Years of continuous service, shall be entitled to eight (8) additional hours of vacation per year of full-time continuous service for each year of service in excess of five (5) years up to a maximum of approximately 160 hours per year. D. The vacation accrual schedule is as follows: Years Service Vacation Hours Earned Maximum Hourly Accrual Rate / Pay Period Bi-Weekly Annual Vacation Hours 0-51 80 3.0769 80 26-14 80120 3.07694.6153 80120 315- 19 80160 3.07696.1538 80160 420+80200 3.07697.6923 80200 5 80 3.0769 80 6 88 3.3846 88 Resolution XXXX7179 SBMSMA 12 of 25 7 96 3.6923 96 8 104 4.0000 104 9 112 4.3076 112 10 120 4.6153 120 11 128 4.9230 128 12 136 5.2307 136 13 144 5.5384 144 14 152 5.8461 152 15 160 6.1538 160 E. All employees in the Marine Safety Officer classification shall only be allowed to accrue a maximum of 2040 hours of vacation. Once this maximum is reached, all further accruals will cease. Vacation accruals will recommence after the employee has taken vacation and the employee's accrued hours drop below the maximum. The maximum can only be exceeded with the approval of the City Manager in writing. F. Employees covered by this agreement considered as hourly, part-time and/or seasonal employees shall not be eligible for paid vacations. G. Employees covered by this agreement who are on leaves of absence, without pay, shall not accrue vacation leave hours during said leaves of absence. H. All employees in the Marine Safety Officer classification not more than once twice in each fiscal year, who have completed at least 1 year of continuous service shall, upon request, receive compensation for up to 16080 hours of available accrued vacation time, but no more than 80 hours per occurance. I. Employees are encouraged to use at least the amount of vacation hours earned each fiscal year. Those employees who have been credited with preexisting leave hours are expected to use a portion of the excess as leave time, in addition to the new vacation hours, each year until the maximum accrual is met. The City recognizes that a number of long-term employees have accrued substantially more leave time than shorter-term employees, and that it will likely take them significantly longer to achieve this goal. It is the intent of this section to balance the personal interests of the employee with the financial concerns of the City; as such, significant progress toward reaching the maximum accrual amounts may be deemed a success. J. Vacation leave time shall not be approved until such time as it has been earned, unless prior, special arrangements have been made with the City Manager. Vacation leave shall be requested by the employee prior to the start of the vacation leave period. Such vacation leave to be taken shall be subject to the Resolution XXXX7179 SBMSMA 13 of 25 prior approval of the Department Head, or designee, subsequent to consideration of the departmental workload and other staffing considerations, such as but not limited to, the previously approved vacation schedule of other employees, sick leave and position vacancies. K. All employees in the Marine Safety Lieutenant classification not more than once twice in each fiscal year, who has completed at least one year of continuous service shall, upon request, receive compensation for up to 1620 hours of available accrued vacation time, but no more than 80 hours per occurrence. SECTION 7: HOLIDAYS A. The City agrees to grant all full-time Marine Safety Association employees a full shift pay for each holiday recognized by City. Every full-time employee of the City shall be granted the following holidays with pay: Holiday Date New Year’s Day January 1st Martin Luther King Day 3rd Monday in January Presidents’ Day 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4th Labor Day First Monday in September Veteran’s Day November 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Day Christmas Eve December 24th Christmas Day December 25th *(2) Floating Holidays (discretion of employee) Total of 132 holidays annually *Floating Holidays must be taken during each fiscal year (July 1st through June 30th). Floating holidays must be approved in advance by the Department Head. B. When a holiday falls on a full-time employee’s regularly scheduled day off, the employee shall receive compensatory time off for a full shift in lieu of holiday pay, in keeping with other provisions of this MOU. Example: Employee A normally works a 4/10 schedule, and a holiday falls on a Monday, Tuesday, Wednesday, Thursday, or Friday, Employee A would receive (10) hours of compensatory time off. Resolution XXXX7179 SBMSMA 14 of 25 C. A Marine Safety Lieutenant and Marine Safety Officer who is required to work on a holiday shall receive pay computed at 1½ times the employees' base hourly rate for the number of hours actually worked. Example: Employee A works 6 hours on Christmas Day. Employee A would earn pay computed as follows: Hours Pay Rate Full-shift holiday pay base hourly rate 6 hours work pay regular hourly rate or overtime hourly rate, as applicable under MOU SECTION 8: RETIREMENT A. The retirement program provided by the City shall consist of a pooled Public Employee's Retirement System (PERS) plan, which includes the following Government Code provisions: Section 20042 One Year Final Compensation Section 20965 Credit of Unused Sick Leave Section 21024 Military Service Credit B. All employees incumbent in the Marine Safety Association shall participate in the 3% @ 50 formula plan for Local Safety Members. C. The Marine Safety Association “PERS Classic” employees shall pay 9% of their CALPERS required contribution of their compensation earnable. D. New employees/members hired on or after January 1, 2013 as defined by The Public Employees’ Pension Reform Act (PEPRA) will be hired at the retirement formula in accordance with the PEPRA and other legislation. SECTION 9: OVERTIME AND CALL OUT PAY A. The following section pertains to the position of Marine Safety Lieutenant and Marine Safety Officer: 1. If work beyond normal workday, workweek or work period is required, the employee who may be asked to perform such overtime shall be notified of the apparent need for such overtime as soon as practicable prior to when the overtime is expected to begin. Resolution XXXX7179 SBMSMA 15 of 25 2. Call out and overtime pay shall be paid at the rate of time and one-half the hourly rate. Minimum "call out" time (when returning to work) shall be 3 hours. Call out time shall start when employee is called to service. 3. Overtime will be computed by dividing the employee's regular monthly salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to be submitted and computed with the regular payroll. 4. Notwithstanding any provision of this Section, the employee shall be entitled to select either compensated overtime or compensatory time off subject to budget limitations, departmental rules and regulations, and Section 11 of this MOU. SECTION 10: COMPENSATORY TIME OFF (CTO) The maximum (cap) of CTO is (120) hours. Compensatory Time earned in excess of (120) hours will be paid as overtime during the pay period accrued. SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee, when so appointed, must perform the duties and assume the responsibilities of the higher classification for (80) consecutive working hours and shall be paid according to the step in the assigned salary range of the new position which is a minimum of 5% higher than the salary received before the provisional appointment (not to exceed the top step). B. When necessary and in the best interest of the City, the City Manager may provisionally assign an employee to a higher level of duty and responsibility than provided for in the employee's assigned classification which is not otherwise a part of an adopted classification. In the case of such an assignment, the employee must perform the higher level of duties for (80) consecutive working hours; thereafter the employee shall receive additional compensation of 5% so long as the assignment is authorized by the City Manager. SECTION 12: SENIORITY BONUS Employees who have achieved (10) years of uninterrupted employment with the City shall receive a 5% increase in base salary effective on the l0th anniversary of their employment. Twenty (20) Years of Service – Employees who have achieved twenty (20) years of uninterrupted employment with the City shall receive a 2.5% increase in base Resolution XXXX7179 SBMSMA 16 of 25 salary (above the previously-described 5% increase at 10 years) effective on the 20th anniversary of their employment. SECTION 13: AUTOMOBILES AND MILEAGE Employees covered by this MOU, utilizing their privately-owned automobiles for City business on a non-regular basis, shall be entitled to reimbursement for costs incurred at the mileage rate established by the Internal Revenue Service (IRS). SECTION 14: ADMINISTRATIVE LEAVE Effective the 1st payroll period in July 20241, and every July thereafter: A. The Marine Safety Lieutenant and Marine Safety Officers shall be entitled to the equivalent of (2) work days of administrative leave during each fiscal year. B. Administrative leave hours may not be carried forward to succeeding years nor may they be turned in for cash value. SECTION 15: LIMITATIONS A. No employee who is receiving Workers’ Compensation payments and benefits is eligible to receive overlapping benefits (except life insurance) stated in this MOU. B. City shall not make any monthly payments for premiums for any insurance benefit listed in this MOU, or uniform allowance, supplemental pay of any type and/or type of bonus on behalf of or to any employee who has been absent without authorization during entire said month or for any employee who has terminated for any reasons whatsoever or who is on leave of absence without pay of who is suspended from duties without pay for the entire said month. SECTION 16: DEFERRED COMPENSATION For the classification of Marine Safety Lieutenant and Marine Safety Officer, the City shall contribute the amount of $40 per payroll period into a deferred compensation program SECTION 17: BILINGUAL COMPENSATION A. Upon the recommendation of a department director, the City Manager may award a bilingual compensation bonus of $52.50 per payroll period to those employees in positions determined to require bilingual skills. B. The City Manager shall require the taking of competency tests to certify the employee as eligible for bilingual compensation based on the employee's Resolution XXXX7179 SBMSMA 17 of 25 proficiency in speaking the language determined to be required. Such certification shall be a condition precedent to qualifying for bilingual pay. SECTION 18: CERTIFICATION PAY A. Employees who possess and maintain valid certification for CPR/AED/First Aid Instructor, as well as a minimum certification of EMT, will receive $500 annually the first pay day in November. B. Employees who possess a United States Coast Guard (USCG) Captains License will receive $250 annually the first pay day in November. SECTION 19: WORK SCHEDULE A. At the discretion of the City Manager, work schedules may be altered as needed to accommodate service demand levels of the residents of the City of Seal Beach. SECTION 20: TUITION REIMBURSEMENT A. Higher Education Degree Programs – Marine Safety Association employees attending accredited community colleges, universities, and trade schools for the purpose of obtaining a higher education degree may apply for reimbursement of tuition, books, student fees and parking. Reimbursement is capped at the tuition rate of the Cal State University system for up to 2 semesters of full-time, undergraduate enrollment each calendar year. B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager. Example: Employee A attends California State University, Long Beach, for the Spring 2021 semester and completes 2 (3-unit) undergraduate courses with a grade of “C” or better. The tuition reimbursement would be calculated as follows: 2020/2021 State University Tuition $1,665.00 (0-6 units) Required University Fees $ 554.00 (approx.) Parking $ 175.00 Books $ 535.00 (approx.) TOTAL $2,929.00 SECTION 21: COMPENSATION PLAN Resolution XXXX7179 SBMSMA 18 of 25 A.Basic Compensation Plan 1. Employees covered by this MOU shall be included under the Basic Compensation Plan. Every classification under this Plan shall be assigned a salary range adopted by the City Council. The salary schedule shall consist of 5 steps within each range. 2. The first step is a minimum rate and is normally the hiring rate for the classification. An employee may be assigned, upon appointment, to other than the normal entering salary step within the assigned range upon the recommendation of the Department Head and with the approval of the City Manager when it is decided that such action is in the best interests of the City. 3. The second step, B step, is a merit adjustment which may be given at the end of the probationary period subject to the recommendation of the Department Head and with the approval of the City Manager. 4. The third, fourth and fifth steps are merit adjustments to encourage an employee to improve their work and to recognize increased skill on the job. Employees are normally eligible for these adjustments at any time after the completion of (1) year of service at the preceding step. Each adjustment shall be made subject to the recommendation of the Department Head and with the approval of the City Manager. B. Advancement within Salary Ranges 1. In order to properly compensate an employee, advancement in salary shall be based on merit. 2. Advancement in salary shall not be automatic, but shall depend upon increased service value of the employee to the City. 3. The Department Head and/or the employee's immediate supervisor shall be responsible to evaluate an employee fairly in an unbiased fashion for the determination of job performance. Advancement shall be made only upon recommendation of the Department Head and with the approval of the City Manager. 4. An employee should be reviewed at least once every (12) months from the effective date of his last performance evaluation, special performance advancement or promotion. Nothing contained herein shall restrict the Department Head from denying the increase after evaluation, nor shall it prevent him from recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated. C. Salary Increases Resolution XXXX7179 SBMSMA 19 of 25 1. Promotional Appointment - When an employee is promoted to a position with a higher salary range, the employee shall be compensated at a step of the salary range assigned to the new position that is closest to providing a 5% salary increase over the base salary received immediately prior to promotion. 2. Temporary Appointment - Employees assigned, in an acting capacity, to a higher classification than the employees' present classification for a period of not less than 80 consecutive working hours shall be entitled to temporary appointment pay. In addition, employees who are assigned by the department director in writing to regularly scheduled acting assignments of less than 80 hours shall also be entitled to temporary appointment pay. Temporary appointment pay will be retroactive to the first hour served in the higher classification and shall be paid at a rate equal to the first step of the higher classification but in no event shall temporary appointment pay be less than 5% more of the employee's current rate. D. Salary Decreases - In the case of a demotion of an employee to a classification with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new classification as recommended by the Department Head with the approval of the City Manager. The employee shall retain his previous anniversary date. E. Adjustments of Salary Ranges - When a salary range for a given classification is revised upward or downward, the incumbents of positions and classifications affected shall have their existing salary adjusted to the same step in the new salary range and their anniversary date shall not be changed. F. Salary and Benefits on Suspension - During suspension from the City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except he shall not forfeit his medical health plans, including dental, retirement plan, disability insurance or life insurance. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment for loss of income and benefits during the period of suspension. G. Salary Adjustments During Term of MOU 1. The salary schedule for each position classification affected is hereby determined and established upon adoption by City Council Salary increases are as follows: First full pay period in July 20241 : - Employees shall receive a 2.53.6% cost of living adjustment. First full pay period in July:20225 : – Employees shall receive a 2.53% cost of living adjustment. Resolution XXXX7179 SBMSMA 20 of 25 First full pay period in July 2023: Employees shall receive a CPI adjustment, minimum 1% up to 3% maximum, as measured utilizing the change in the Los Angeles-Long Beach-Anaheim. All urban Consumers index for the 12 months of April 2022-2023. Mid-Management Grade Job Classifications 31 Marine Safety Lieutenant Technical Grade Job Classifications 23 Marine Safety Officer H. Non- PERSable Lump Sum Payments During Term of Memorandum of Understanding The City shall make one (1) Non- PERSable lump sum payment of $4,000 (subject to applicable withholdings) prior to January 1, 2025 to each bargaining unit member employed by the City. SECTION 22: LEAVES OF ABSENCE A.Authorized Leave of Absence Without Pay 1. Upon the Department Head's recommendation and approval of the City Manager, an employee may be granted a level of absence without pay in cases of an emergency or where such absence would not be contrary to the best interest of the City, for a period not to exceed 180 working days. 2. Upon written request of the employee, the City Manager may grant a leave of absence, with or without pay, for a period not to exceed (1) year. 3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted. Failure on the part of the employee to report promptly at such leave's expiration and receipt of notice to return to duty shall be cause for discharge. 4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except an employee Resolution XXXX7179 SBMSMA 21 of 25 shall receive their monthly flex dollar allowance and the City, as specifically provided for in this MOU, shall contribute to the employee’s disability insurance plan, and life insurance plan for the first (30) days of leave of absence. B.Bereavement Leave The City agrees to provide 40 hours bereavement leave with pay for death in the immediate family. The bereavement leave shall not be chargeable to or accumulated as sick time or leave time. “Immediate family” is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, step-mother, step-father, step-child, mother-in-law, father-in-law, domestic partner-in-law or dependent relative living with the employee. C.Military Leave of Absence 1. Military leave shall be granted in accordance with the provisions of Federal and State law. All employees entitled to military leave shall give the Department Head an opportunity within the limits of military regulations to determine when such leave shall be taken. Whenever possible, the employee involved shall notify the Department Head of such leave request (10) working days in advance of the beginning of the leave. 2. In addition to the provisions of State law, the City shall continue to provide eligible employees on military leave, the monthly flex dollar allowance under the cafeteria plan and disability and life insurance and retirement (if applicable) for the first (3) months of military leave. During said period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance (if applicable). 3. After the first (3) months of military leave, the employee may continue said benefits at his cost. D.Pregnancy Disability Leave of Absence 1. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. The employee may elect to take a lesser period of leave. 2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay. E.Family Leave - Upon a demonstration of need and subject to the following conditions, an employee may take leave or unpaid leave to care for his newborn Resolution XXXX7179 SBMSMA 22 of 25 infant, whether through parentage or adoption, or to care for a seriously ill or injured member of the employees "immediate family" as defined in Section 6. 1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City. 2. Requests for family leave must be submitted in writing to the employee's supervisor at the earliest possible date proceeding the time when the leave is to begin. 3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with the provisions of State and Federal Family Leave laws. 4. In the event of an extended family leave, the employee may be required to periodically report on the status of the situation giving rise to the leave. 5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager consistent with the provisions of State and Federal Family Leave laws. F.Catastrophic Leave - The purpose of the Catastrophic Leave Pool is to enable full time employees to receive and donate vacation, administrative leave, and CTO leave credits on an hour for hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or a member of their immediate family. Sick Leave is excluded from this program. The following conditions shall apply to Catastrophic Leave: 1. Catastrophic Leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident. 2. The leave pool shall be administered by the Finance Department. 3. Employees must be in regular full-time appointed positions to be eligible to receive catastrophic leave. 4. Employees receiving Long-Term Disability payments are excluded from receiving catastrophic leave under this program. 5. All donations are to be confidential, between the donating employee and the Finance Department. 6. Employees donating to the pool must have 40 hours of paid leave available after making a donation. Resolution XXXX7179 SBMSMA 23 of 25 7. Donating employees must sign an authorization, including specifying the specific employee to be the recipient of the donation. 8. Donations will be subject to applicable tax laws. 9. The availability of Catastrophic Leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee. 10. Catastrophic Leave due to illness or injury of an immediate family member may require medical justification as evidenced by a Physician’s Statement that the presence of the employee is necessary. 11. Catastrophic Leave due to the illness or injury of the employee will require medical justification as evidenced by a Physician’s Statement as to the employee’s condition. SECTION 23: HEALTH WELLNESS PROGRAM (Medical Maintenance Examination & Wellness Program) The City shall reimburse Employee, as a medical benefit, for Employee’s actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $5500 per fiscal year for the Marine Safety Lieutenant and in an amount not to exceed $4500 for the Marine Safety Officer classification, subject to the City’s normal reimbursement processes and requirements such expenses. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager or his/her designee. SECTION 24: MISCELLANEOUS A.Layoff: The City is to give Association (45) days prior notice before the effective date of any layoffs. During this (45) day period, the City will, upon request, meet and confer on the impact of the layoffs. B.The physical fitness program is a voluntary program for all union members utilizing vacation hours as compensation for achieving goals within this program. The details of this program are attached as Exhibit A to this MOU. SECTION 25: TERM The Memorandum of Understanding shall remain in full force and effect from July 1, 20241 until midnight June 30, 20246. SECTION 26: APPEALS Resolution XXXX7179 SBMSMA 24 of 25 A. Employees shall be allowed to appeal written reprimands to the Personnel Officer. Such appeals shall be filed within (14) calendar days. The decision of the Personnel Office shall be final. B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation shall be interpreted to allow employees to present evidence showing the absence was for good cause and that circumstance prevented them from contacting the City. SECTION 27: REOPENER City and Association agrees to reconvene during the terms of this MOU to discuss all fringe benefits, including but not limited to health plans, the implementation of HSA or HRA programs for employee and retiree medical premiums. SECTION 28: RATIFICATION This Memorandum of Understanding is subject to approval and adoption by the City Council and ratification by the required number of the duly authorized representatives of the Association. Following such approval and adoption, the Memorandum of Understanding shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council. IN WITNESS HEREOF, the parties have hereto caused this Memorandum of Understanding to be executed Date: Patrick Gallegos, Jill R. Ingram, Interim City Manager Date: Patrick Gallegos, Assistant City Manager CITY OF SEAL BEACH MARINE SAFETY ASSOCIATION: Date: Nick Bolin,Chris Pierce President Date: Jeremy JenksNick Bolin, Vice President Date: Carlos Rubio,Gregorio Daniel Teamsters Resolution XXXX7179 SBMSMA 25 of 25 Seal Beach Marine Safety Management Association (SBMSMA) MEMORANDUM OF UNDERSTANDING Resolution XXXX7179 - Exhibit BA ADOPTED: December 912, 2024July 1, 2021 EXPIRES: June 30, 20264 TABLE OF CONTENTS SECTION 1: RECOGNITION ....................................................................................5 Resolution XXXX7179 SBMSMA 2 of 29 SECTION 2: CITY RIGHTS Rights/Responsibilities.....................................................................................6 SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE A. Health Insurance Coverage........................................................................8 B. Life Insurance .............................................................................................9 C. Income Continuation..............................................................................9 D. Annual Dermatological Screening .........................................................9 SECTION 4: RETIREMENT HEALTH INSURANCE .............................................10 SECTION 5: SICK LEAVE ......................................................................................11 SECTION 6: VACATION TIME ...............................................................................11 SECTION 7: HOLIDAYS .........................................................................................13 SECTION 8: RETIREMENT ....................................................................................15 SECTION 9: OVERTIME AND CALL OUT PAY....................................................15 SECTION 10: COMPENSATORY TIME OFF ........................................................16 SECTION 11: PROVISIONAL APPOINTMENTS...................................................16 SECTION 12: SENIORITY BONUS ........................................................................16 SECTION 13: AUTOMOBILES AND MILEAGE ....................................................16 Resolution XXXX7179 SBMSMA 3 of 29 9 6 9 2 SECTION 14: ADMINISTRATIVE LEAVE..............................................................16 SECTION 15: LIMITATIONS...................................................................................17 SECTION 16: DEFERRED COMPENSATION.......................................................17 SECTION 17: BILINGUAL COMPENSATION.......................................................17 SECTION 18: CERTIFICATION PAY ……………………………………………...17 SECTION 19: WORK SCHEDULE .........................................................................18 SECTION 20: TUITION REIMBURSEMENT..........................................................18 SECTION 21: COMPENSATION PLAN A. Basic Compensation Plan........................................................................18 B. Advancement within Salary Ranges ........................................................19 C. Salary Increases.......................................................................................19 D. Salary Decreases.....................................................................................20 E. Adjustments of Salary Ranges.................................................................20 F. Salary and Benefits on Suspension .........................................................20 G. Salary Adjustments During Term of MOU...............................................20 H. Non-PERSable Lump Sum Payment During Term of Memorandum of Understanding SECTION 22: LEAVES OF ABSENCE A. Authorized Leave of Absence Without Pay..............................................21 Resolution XXXX7179 SBMSMA 4 of 29 B. Bereavement Leave ................................................................................21 C. Military Leave of Absence.......................................................................21 D. Pregnancy Disability Leave of Absence .................................................22 E. Family Leave ............................................................................................22 F. Catastrophic Leave ..................................................................................23 SECTION 23: MISCELLANEOUS A.Lay-off.......................................................................................................24 B.Physical Fitness Program SECTION 24: TERM................................................................................................24 SECTION 25: APPEALS.........................................................................................24 SECTION 26: REOPENER......................................................................................24 SECTION 27: RATIFICATION ................................................................................24 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION SECTION 1: RECOGNITION A. Pursuant to the provisions of Employee-Employer Relations Resolution 5242, as amended, the City of Seal Beach (hereinafter called the "City" and/or "Employer" and/or “Management” interchangeably) has recognized for the purpose of this Memorandum of Understanding (MOU), the Seal Beach Marine Safety Management Association (SBMSMA) an association of employees of the City of Seal Beach, hereinafter referred to as "Association". B. The City recognizes the Association as the representative of the employees in the classification and assignments set forth in Section 21.G below for the Resolution XXXX7179 SBMSMA 5 of 29 9 6 9 2 purpose of meeting its obligations under this MOU, the Meyers-Milias-Brown Act, Government Code Section 3500 et seq., when City rules, regulations, or laws affecting wages, hours and/or other terms and conditions of employment are amended or changed. C. The City agrees that the recognized representatives of Association not to exceed 3 in number shall be entitled to meet and confer with City during said recognized representatives' normal working hours without suffering any loss in pay while absent from the duties for such purpose. City also agrees that such representatives may utilize a total of not more than 3 hours per year without suffering any loss in pay for such absence for the purpose of meeting with employees who are members of the Association and/or other officers of the Association. D. City recognizes Association's right to appoint or elect representatives to meet and confer with City's management representatives on salaries, wages, and terms and conditions of employment. Association agrees to notify City in writing as to the identity of the representatives and of subsequent appointments, if any. Association and City agree that employees appointed or elected as Association representatives shall be required to work full time. E. It is recognized and agreed that no Association business and/or meetings will be conducted and/or attended by employees of City during their respective hours of duty and work unless specified herein. F. Representatives and/or officers of Association shall not interrupt the work of any employee of City at any time to conduct business or other matters connected with Association without prior consent of Management. G. This document supersedes all prior Memoranda of Understanding and verbal agreements between the parties hereto. SECTION 2: CITY RIGHTS A.Rights/Responsibilities - This City reserves, retains and is vested with solely and exclusively, all rights of management which have not been expressly abridged by specific provisions of this MOU or by law to manage the City, as such rights existed prior to the execution of this MOU. The sole and exclusive rights of management, as they are not abridged by this Agreement or by law, shall include but not be limited to, the following rights: 1. To manage the City generally and to determine the issues of policy. 2. To determine the existence or nonexistence of facts which are the basis of the management decision(s). Resolution XXXX7179 SBMSMA 6 of 29 3. To determine the necessity and organization of any service or activity conducted by the City and expand or diminish services. 4. To determine the nature, manner, means and technology and extent of services to be provided to the public. 5. To determine methods of financing. 6. To determine types of equipment or technology to be used. 7. To determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted. 8. To determine and change the number of locations, relocations, and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City. 9. To assign work to and schedule employees in accordance with any requirements set forth in this MOU, and to establish and change work schedules and assignments upon reasonable notice insofar as such changes do not conflict with this MOU. 10. To layoff employees from duties because of lack of work or funds, or under conditions where continued work would be ineffective or non-productive. 11. To establish and modify productivity and performance programs and standards. 12. To discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees for cause. 13. To determine minimum qualifications, skills abilities, knowledge, selection procedures and standards, job classifications and to reclassify employees in accordance with this MOU and applicable resolutions and codes of the City. 14. To hire, transfer, promote and demote employees for non-disciplinary reasons in accordance with the MOU and applicable resolutions and codes of the City. 15. To determine policies, procedures and standards for selection, training and promotion of employees in accordance with this MOU and applicable resolutions and codes of the City. Resolution XXXX7179 SBMSMA 7 of 29 9 6 9 2 16. To establish reasonable employee performance standards including but not limited to, quality and quantity standards and to require compliance therewith. 17. To maintain order and efficiency in its facilities and operation. 18. To establish and promulgate and/or modify rules and regulations to maintain order and safety and which are not in contravention with the Agreement. 19. To restrict the activity of an employee organization on municipal property and on municipal time except as set forth in this MOU. 20. To take any and all necessary action to carry out the mission of the City in emergencies. B. Where the City is required to make changes in its operations because of the requirements of law, whenever the contemplated exercise of City Rights shall impact the wages, hours and other terms and conditions of employment of the bargaining unit, the City agrees to meet and confer in good faith with representatives of the Association regarding the impact of the contemplated exercise of such rights prior to exercising such rights, unless the matter of the exercise of such rights is provided for in this MOU. SECTION 3: HEALTH INSURANCE COVERAGE: LIFE & DISABILITY INSURANCE A.Health Insurance Coverage 1. The City shall contribute to the cost of medical coverage for each eligible employee and his/her dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution. For calendar year 20214, CalPERS has established the minimum PEMHCA contribution at $143 157XXXX per month per employee. 2. The City shall contribute an equal amount towards the cost of medical coverage under PEMHCA for both active eligible employees and eligible retirees. 3. The City shall implement a full flex cafeteria plan for eligible employees in accordance with the criteria provided to the Association during negotiations. For employees participating in the City’s cafeteria plan, each employee shall receive a monthly flex dollar allowance to be used for the purchase of benefits under the cafeteria plan. Beginning January 1, 20214, the monthly flex dollar allowance shall be: For Employee only $ 941.171,1666.99/month For Employee and 1 dependent $ Resolution XXXX7179 SBMSMA 8 of 29 1454.411,803.38month For Employee and 2 or more dependents $ 2,332.121880.83/month 4. A portion of the monthly flex dollar allowance is identified as the City’s contribution towards PEMHCA. Thus, for example, in calendar year 20214, an employee only monthly flex dollar allowance is $1,1666.99941.17 of that $1,166.99941.17; $157143 has been designated by the City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be used in accordance with the terms of the City’s cafeteria plan. 5. Effective January 1, 20214, and every January 1st during the term of this agreement, the City shall increase the contribution amounts above by the average percentage of increase for basic plans published by CalPERS which sets health insurance premiums for the coverage year. 6. Employees meeting the waiver criteria and electing to waive enrollment in the City’s cafeteria plan are eligible to receive $350 per month beginning January 1, 20241 (upon showing proof of medical insurance coverage under an alternative plan). Election forms are available in the Human Resources. 7. Full-time employees covered by this MOU who have completed 30 days of uninterrupted service shall be enrolled in the cafeteria plan on the first day of the next succeeding month. 8. Employees who change classification from full-time to part-time provisional, hourly or seasonal shall not be eligible for participation in the cafeteria plan. 9. City shall not contribute to the cafeteria plan for any employee during any month the employee is on leave of absence without pay or who is absent from regular duties without authorization, for a full calendar month. City shall contribute to the cafeteria plan for eligible employees receiving temporary payments from Workers Compensation Insurance. B.Life Insurance Employees covered by this agreement shall receive a $50,000 term life insurance policy paid by the City. Said insurance shall become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. C.Income Continuation Employees covered by this Agreement shall receive a policy to provide for income continuation of 66.67% of the employee's monthly salary, up to a maximum of $5,000 per month, whichever is lesser, paid by the City. Said insurance shall Resolution XXXX7179 SBMSMA 9 of 29 9 6 9 2 become effective after the employee has completed 30 days of uninterrupted service with said employee to be enrolled in the program on the 1st day of the next succeeding month. Said income continuation shall commence on the 3lst day of sickness or other bona fide absence or upon expiration of sick leave, whichever occurs later, and continuing thereafter while the employee is absent from work for a period of up to age 65. D.Annual Dermatological Screening The City will provide employees with one (1) annual dermatological (skin cancer) screening at no cost to employees. Screening will be provided by Beach Dermatology located at 500 Pacific Coast Highway, Suite 212 in Seal Beach and must be scheduled by the employee. Any treatment deemed necessary following the exam shall be scheduled by the employee through the employee’s provider of choice using the employee’s insurance. All medical billing for the screening services will be forwarded for payment to the City of Seal Beach by Beach Dermatology. SECTION 4: RETIREMENT HEALTH INSURANCE A. Employees covered by this Agreement shall have the option upon retirement, to continue participation in the City's health insurance program at the employee's expense. B. Employees in the Marine Safety Lieutenant classification, who were hired before January 1, 2008 by the City, and who retire after December 31, 2009, with 20 or more combined years of employment with the City shall, upon retirement, be provided with individual medical insurance coverage. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided at the rate of (a) the average of the 2 lowest cost medical care plans offered by CalPERS, or (b) the CalPERS Kaiser HMO, whichever is greater. When the retired employee becomes Medicare eligible, the City’s contribution will be capped at the rate of (a) the average of the 2 lowest cost Medicare supplement plans offered by CalPERS, or (b) the CalPERS Kaiser HMO Medicare supplement plan, whichever is greater. C. Employees in the Marine Safety Officer classification covered by this Agreement who were hired before April 13, 2009 by the City, have 20 or more combined years of employment with the City, have reached 55 years of age, and retire after December 31, 2010, shall be provided with individual medical insurance coverage capped at the Kaiser HMO rate. If said employee has 30 or more combined years of employment with the City upon retirement, eligible dependent medical insurance coverage shall also be provided capped at the Kaiser HMO rate. A portion of the payment for retiree or retiree and dependents medical insurance is identified as the City’s contribution towards PEMHCA. Resolution XXXX7179 SBMSMA 10 of 29 D. On or after January 1st 2008, the City shall contribute to the cost of medical coverage for each eligible retiree and dependents, an amount not to exceed the California Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum contribution. E. In all cases, the City's contribution for eligible dependent coverage for retirees shall terminate with the death of the retiree. F. In the event an eligible retired employee resides in an area where the health plans provided by the City are not in effect, that retired employee shall be entitled to receive in cash each month an amount equal to the City flex contribution at time of retirement. SECTION 5: SICK LEAVE A. All full-time employees covered by this MOU shall accrue sick leave at the rate of 1 day (8 hours) per month of service. Sick leave may be accumulated up to and including 520 hours. Except as otherwise provided in this MOU, no employee shall receive further accruals once the 520 hour maximum is reached. B. The Department Head may require employees to present proof of illness for sick leaves in excess of 3 working days. C. All employees in the Marine Safety Lieutenant classification, upon termination of employment with the City, all compensable leave hours will be paid to the employee at the employee's base rate of pay. Sick leave balances which have not been converted to leave time will be paid to the employee upon termination at 25% of the employee's base rate of pay. D. All employees in the Marine Safety Officer classification except as otherwise provided, employees shall not be eligible for any payment for sick leave balances upon termination. E. Employees who are on authorized leaves of absence, without pay, shall not accrue sick leave hours during said leaves of absence. F. Sick leave balances may not be used to defer a disability retirement. SECTION 6: VACATION TIME A.Marine Safety Officers covered by this Agreement, have passed the employee probationary period (as defined in the Personnel Rules and Regulations, Resolution XXXX7179 SBMSMA 11 of 29 9 6 9 2 Section 6.01) shall be granted a vacation with pay of approximately 80 hours per year up to a maximum of approximately (160) hours per year. B. All employees in the Marine Safety Lieutenant classification who shall have at least three (3) years of continuous service shall be entitled to eight (8) additional hours of vacation for each year of full-time continuous service in excess of three (3) years. The vacation accrual schedule for mid-management employees is as follows: Years Service Vacation Hours Earned Maximum Hourly Accrual Rate / Pay Period Bi-Weekly Annual Vacation Hours Maximum Vacation Accrual 1 80 3.0769 80 160 2 80 3.0769 80 160 3 80 3.0769 80 160 4 88 3.3846 88 200 5 96 3.6923 96 200 6 104 4.0000 104 200 7 112 4.3044 112 200 8 120 4.6154 120 200 9 128 4.9231 128 240 10 136 5.2308 136 240 11 144 5.5385 144 240 12 152 5.8462 152 240 13 160 6.1538 160 240 C. All employees in the Marine Safety Officer classification who shall have at least (5) Years of continuous service, shall be entitled to eight (8) additional hours of vacation per year of full-time continuous service for each year of service in excess of five (5) years up to a maximum of approximately 160 hours per year. D. The vacation accrual schedule is as follows: Years Service Vacation Hours Earned Maximum Hourly Accrual Rate / Pay Period Bi-Weekly Annual Vacation Hours 0-51 80 3.0769 80 26-14 80120 3.07694.6153 80120 315- 19 80160 3.07696.1538 80160 420+80200 3.07697.6923 80200 5 80 3.0769 80 6 88 3.3846 88 Resolution XXXX7179 SBMSMA 12 of 29 7 96 3.6923 96 8 104 4.0000 104 9 112 4.3076 112 10 120 4.6153 120 11 128 4.9230 128 12 136 5.2307 136 13 144 5.5384 144 14 152 5.8461 152 15 160 6.1538 160 E. All employees in the Marine Safety Officer classification shall only be allowed to accrue a maximum of 2040 hours of vacation. Once this maximum is reached, all further accruals will cease. Vacation accruals will recommence after the employee has taken vacation and the employee's accrued hours drop below the maximum. The maximum can only be exceeded with the approval of the City Manager in writing. F. Employees covered by this agreement considered as hourly, part-time and/or seasonal employees shall not be eligible for paid vacations. G. Employees covered by this agreement who are on leaves of absence, without pay, shall not accrue vacation leave hours during said leaves of absence. H. All employees in the Marine Safety Officer classification not more than once twice in each fiscal year, who have completed at least 1 year of continuous service shall, upon request, receive compensation for up to 16080 hours of available accrued vacation time, but no more than 80 hours per occurance. I. Employees are encouraged to use at least the amount of vacation hours earned each fiscal year. Those employees who have been credited with preexisting leave hours are expected to use a portion of the excess as leave time, in addition to the new vacation hours, each year until the maximum accrual is met. The City recognizes that a number of long-term employees have accrued substantially more leave time than shorter-term employees, and that it will likely take them significantly longer to achieve this goal. It is the intent of this section to balance the personal interests of the employee with the financial concerns of the City; as such, significant progress toward reaching the maximum accrual amounts may be deemed a success. J. Vacation leave time shall not be approved until such time as it has been earned, unless prior, special arrangements have been made with the City Manager. Vacation leave shall be requested by the employee prior to the start of the vacation leave period. Such vacation leave to be taken shall be subject to the Resolution XXXX7179 SBMSMA 13 of 29 9 6 9 2 prior approval of the Department Head, or designee, subsequent to consideration of the departmental workload and other staffing considerations, such as but not limited to, the previously approved vacation schedule of other employees, sick leave and position vacancies. K. All employees in the Marine Safety Lieutenant classification not more than once twice in each fiscal year, who has completed at least one year of continuous service shall, upon request, receive compensation for up to 1620 hours of available accrued vacation time, but no more than 80 hours per occurrence. SECTION 7: HOLIDAYS A. The City agrees to grant all full-time Marine Safety Association employees a full shift pay for each holiday recognized by City. Every full-time employee of the City shall be granted the following holidays with pay: Holiday Date New Year’s Day January 1st Martin Luther King Day 3rd Monday in January Presidents’ Day 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4th Labor Day First Monday in September Veteran’s Day November 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Day Christmas Eve December 24th Christmas Day December 25th *(2) Floating Holidays (discretion of employee) Total of 132 holidays annually *Floating Holidays must be taken during each fiscal year (July 1st through June 30th). Floating holidays must be approved in advance by the Department Head. B. When a holiday falls on a full-time employee’s regularly scheduled day off, the employee shall receive compensatory time off for a full shift in lieu of holiday pay, in keeping with other provisions of this MOU. Example: Employee A normally works a 4/10 schedule, and a holiday falls on a Monday, Tuesday, Wednesday, Thursday, or Friday, Employee A would receive (10) hours of compensatory time off. Resolution XXXX7179 SBMSMA 14 of 29 C. A Marine Safety Lieutenant and Marine Safety Officer who is required to work on a holiday shall receive pay computed at 1½ times the employees' base hourly rate for the number of hours actually worked. Example: Employee A works 6 hours on Christmas Day. Employee A would earn pay computed as follows: Hours Pay Rate Full-shift holiday pay base hourly rate 6 hours work pay regular hourly rate or overtime hourly rate, as applicable under MOU SECTION 8: RETIREMENT A. The retirement program provided by the City shall consist of a pooled Public Employee's Retirement System (PERS) plan, which includes the following Government Code provisions: Section 20042 One Year Final Compensation Section 20965 Credit of Unused Sick Leave Section 21024 Military Service Credit B. All employees incumbent in the Marine Safety Association shall participate in the 3% @ 50 formula plan for Local Safety Members. C. The Marine Safety Association “PERS Classic” employees shall pay 9% of their CALPERS required contribution of their compensation earnable. D. New employees/members hired on or after January 1, 2013 as defined by The Public Employees’ Pension Reform Act (PEPRA) will be hired at the retirement formula in accordance with the PEPRA and other legislation. SECTION 9: OVERTIME AND CALL OUT PAY A. The following section pertains to the position of Marine Safety Lieutenant and Marine Safety Officer: 1. If work beyond normal workday, workweek or work period is required, the employee who may be asked to perform such overtime shall be notified of the apparent need for such overtime as soon as practicable prior to when the overtime is expected to begin. Resolution XXXX7179 SBMSMA 15 of 29 9 6 9 2 2. Call out and overtime pay shall be paid at the rate of time and one-half the hourly rate. Minimum "call out" time (when returning to work) shall be 3 hours. Call out time shall start when employee is called to service. 3. Overtime will be computed by dividing the employee's regular monthly salary by 173.3 to arrive at an hourly wage. Paid overtime for the pay period is to be submitted and computed with the regular payroll. 4. Notwithstanding any provision of this Section, the employee shall be entitled to select either compensated overtime or compensatory time off subject to budget limitations, departmental rules and regulations, and Section 11 of this MOU. SECTION 10: COMPENSATORY TIME OFF (CTO) The maximum (cap) of CTO is (120) hours. Compensatory Time earned in excess of (120) hours will be paid as overtime during the pay period accrued. SECTION 11: PROVISIONAL APPOINTMENTS AND ASSIGNMENTS A. An employee, when authorized by the City Manager, may receive a provisional appointment to a higher classification to fill a temporary vacancy. The employee, when so appointed, must perform the duties and assume the responsibilities of the higher classification for (80) consecutive working hours and shall be paid according to the step in the assigned salary range of the new position which is a minimum of 5% higher than the salary received before the provisional appointment (not to exceed the top step). B. When necessary and in the best interest of the City, the City Manager may provisionally assign an employee to a higher level of duty and responsibility than provided for in the employee's assigned classification which is not otherwise a part of an adopted classification. In the case of such an assignment, the employee must perform the higher level of duties for (80) consecutive working hours; thereafter the employee shall receive additional compensation of 5% so long as the assignment is authorized by the City Manager. SECTION 12: SENIORITY BONUS Employees who have achieved (10) years of uninterrupted employment with the City shall receive a 5% increase in base salary effective on the l0th anniversary of their employment. Twenty (20) Years of Service – Employees who have achieved twenty (20) years of uninterrupted employment with the City shall receive a 2.5% increase in base Resolution XXXX7179 SBMSMA 16 of 29 salary (above the previously-described 5% increase at 10 years) effective on the 20th anniversary of their employment. SECTION 13: AUTOMOBILES AND MILEAGE Employees covered by this MOU, utilizing their privately-owned automobiles for City business on a non-regular basis, shall be entitled to reimbursement for costs incurred at the mileage rate established by the Internal Revenue Service (IRS). SECTION 14: ADMINISTRATIVE LEAVE Effective the 1st payroll period in July 20241, and every July thereafter: A. The Marine Safety Lieutenant and Marine Safety Officers shall be entitled to the equivalent of (2) work days of administrative leave during each fiscal year. B. Administrative leave hours may not be carried forward to succeeding years nor may they be turned in for cash value. SECTION 15: LIMITATIONS A. No employee who is receiving Workers’ Compensation payments and benefits is eligible to receive overlapping benefits (except life insurance) stated in this MOU. B. City shall not make any monthly payments for premiums for any insurance benefit listed in this MOU, or uniform allowance, supplemental pay of any type and/or type of bonus on behalf of or to any employee who has been absent without authorization during entire said month or for any employee who has terminated for any reasons whatsoever or who is on leave of absence without pay of who is suspended from duties without pay for the entire said month. SECTION 16: DEFERRED COMPENSATION For the classification of Marine Safety Lieutenant and Marine Safety Officer, the City shall contribute the amount of $40 per payroll period into a deferred compensation program SECTION 17: BILINGUAL COMPENSATION A. Upon the recommendation of a department director, the City Manager may award a bilingual compensation bonus of $52.50 per payroll period to those employees in positions determined to require bilingual skills. B. The City Manager shall require the taking of competency tests to certify the employee as eligible for bilingual compensation based on the employee's Resolution XXXX7179 SBMSMA 17 of 29 9 6 9 2 proficiency in speaking the language determined to be required. Such certification shall be a condition precedent to qualifying for bilingual pay. SECTION 18: CERTIFICATION PAY A. Employees who possess and maintain valid certification for CPR/AED/First Aid Instructor, as well as a minimum certification of EMT, will receive $500 annually the first pay day in November. B. Employees who possess a United States Coast Guard (USCG) Captains License will receive $250 annually the first pay day in November. SECTION 19: WORK SCHEDULE A. At the discretion of the City Manager, work schedules may be altered as needed to accommodate service demand levels of the residents of the City of Seal Beach. SECTION 20: TUITION REIMBURSEMENT A. Higher Education Degree Programs – Marine Safety Association employees attending accredited community colleges, universities, and trade schools for the purpose of obtaining a higher education degree may apply for reimbursement of tuition, books, student fees and parking. Reimbursement is capped at the tuition rate of the Cal State University system for up to 2 semesters of full-time, undergraduate enrollment each calendar year. B. Reimbursement is contingent upon the successful completion of the course. Successful completion means a grade of “C” or better for undergraduate courses and a grade of “B” or better for graduate courses. All claims for tuition reimbursement require prior approval and are subject to verification and approval by the City Manager. Example: Employee A attends California State University, Long Beach, for the Spring 2021 semester and completes 2 (3-unit) undergraduate courses with a grade of “C” or better. The tuition reimbursement would be calculated as follows: 2020/2021 State University Tuition $1,665.00 (0-6 units) Required University Fees $ 554.00 (approx.) Parking $ 175.00 Books $ 535.00 (approx.) TOTAL $2,929.00 SECTION 21: COMPENSATION PLAN Resolution XXXX7179 SBMSMA 18 of 29 A.Basic Compensation Plan 1. Employees covered by this MOU shall be included under the Basic Compensation Plan. Every classification under this Plan shall be assigned a salary range adopted by the City Council. The salary schedule shall consist of 5 steps within each range. 2. The first step is a minimum rate and is normally the hiring rate for the classification. An employee may be assigned, upon appointment, to other than the normal entering salary step within the assigned range upon the recommendation of the Department Head and with the approval of the City Manager when it is decided that such action is in the best interests of the City. 3. The second step, B step, is a merit adjustment which may be given at the end of the probationary period subject to the recommendation of the Department Head and with the approval of the City Manager. 4. The third, fourth and fifth steps are merit adjustments to encourage an employee to improve their work and to recognize increased skill on the job. Employees are normally eligible for these adjustments at any time after the completion of (1) year of service at the preceding step. Each adjustment shall be made subject to the recommendation of the Department Head and with the approval of the City Manager. B. Advancement within Salary Ranges 1. In order to properly compensate an employee, advancement in salary shall be based on merit. 2. Advancement in salary shall not be automatic, but shall depend upon increased service value of the employee to the City. 3. The Department Head and/or the employee's immediate supervisor shall be responsible to evaluate an employee fairly in an unbiased fashion for the determination of job performance. Advancement shall be made only upon recommendation of the Department Head and with the approval of the City Manager. 4. An employee should be reviewed at least once every (12) months from the effective date of his last performance evaluation, special performance advancement or promotion. Nothing contained herein shall restrict the Department Head from denying the increase after evaluation, nor shall it prevent him from recommending a special performance advancement in salary at any time when unusual or outstanding achievement has been demonstrated. C. Salary Increases Resolution XXXX7179 SBMSMA 19 of 29 9 6 9 2 1. Promotional Appointment - When an employee is promoted to a position with a higher salary range, the employee shall be compensated at a step of the salary range assigned to the new position that is closest to providing a 5% salary increase over the base salary received immediately prior to promotion. 2. Temporary Appointment - Employees assigned, in an acting capacity, to a higher classification than the employees' present classification for a period of not less than 80 consecutive working hours shall be entitled to temporary appointment pay. In addition, employees who are assigned by the department director in writing to regularly scheduled acting assignments of less than 80 hours shall also be entitled to temporary appointment pay. Temporary appointment pay will be retroactive to the first hour served in the higher classification and shall be paid at a rate equal to the first step of the higher classification but in no event shall temporary appointment pay be less than 5% more of the employee's current rate. D. Salary Decreases - In the case of a demotion of an employee to a classification with a lower maximum salary, such employee shall be assigned to the appropriate salary step in the new classification as recommended by the Department Head with the approval of the City Manager. The employee shall retain his previous anniversary date. E. Adjustments of Salary Ranges - When a salary range for a given classification is revised upward or downward, the incumbents of positions and classifications affected shall have their existing salary adjusted to the same step in the new salary range and their anniversary date shall not be changed. F. Salary and Benefits on Suspension - During suspension from the City service for disciplinary cause, an employee shall forfeit all rights, privileges and salary, except he shall not forfeit his medical health plans, including dental, retirement plan, disability insurance or life insurance. Should such suspension be later modified or revoked, the employee shall be entitled to receive payment for loss of income and benefits during the period of suspension. G. Salary Adjustments During Term of MOU 1. The salary schedule for each position classification affected is hereby determined and established upon adoption by City Council Salary increases are as follows: First full pay period in July 20241 : - Employees shall receive a 2.53.6% cost of living adjustment. First full pay period in July:20225 : – Employees shall receive a 2.53% cost of living adjustment. Resolution XXXX7179 SBMSMA 20 of 29 First full pay period in July 2023: Employees shall receive a CPI adjustment, minimum 1% up to 3% maximum, as measured utilizing the change in the Los Angeles-Long Beach-Anaheim. All urban Consumers index for the 12 months of April 2022-2023. Mid-Management Grade Job Classifications 31 Marine Safety Lieutenant Technical Grade Job Classifications 23 Marine Safety Officer H. Non-PERSable Lump Sum Payment During Term of Memorandum of Understanding The City shall make one (1) Non- PERSable lump sum payment of $4,000 (subject to applicable withholdings) prior to January 1, 2025 to each bargaining unit member employed by the City. SECTION 22: LEAVES OF ABSENCE A.Authorized Leave of Absence Without Pay 1. Upon the Department Head's recommendation and approval of the City Manager, an employee may be granted a level of absence without pay in cases of an emergency or where such absence would not be contrary to the best interest of the City, for a period not to exceed 180 working days. 2. Upon written request of the employee, the City Manager may grant a leave of absence, with or without pay, for a period not to exceed (1) year. 3. At the expiration of the approved leave, after notice to return to duty, the employee shall be reinstated to the position held at the time leave was granted. Failure on the part of the employee to report promptly at such leave's expiration and receipt of notice to return to duty shall be cause for discharge. 4. During any authorized leave of absence without pay, an employee shall not be eligible to accumulate or receive fringe benefits, except an employee Resolution XXXX7179 SBMSMA 21 of 29 9 6 9 2 shall receive their monthly flex dollar allowance and the City, as specifically provided for in this MOU, shall contribute to the employee’s disability insurance plan, and life insurance plan for the first (30) days of leave of absence. B.Bereavement Leave The City agrees to provide 40 hours bereavement leave with pay for death in the immediate family. The bereavement leave shall not be chargeable to or accumulated as sick time or leave time. “Immediate family” is defined as spouse, registered domestic partner, father, mother, son, daughter, brother, sister, grandparent, grandchild, step-mother, step-father, step-child, mother-in-law, father-in-law, domestic partner-in-law or dependent relative living with the employee. C.Military Leave of Absence 1. Military leave shall be granted in accordance with the provisions of Federal and State law. All employees entitled to military leave shall give the Department Head an opportunity within the limits of military regulations to determine when such leave shall be taken. Whenever possible, the employee involved shall notify the Department Head of such leave request (10) working days in advance of the beginning of the leave. 2. In addition to the provisions of State law, the City shall continue to provide eligible employees on military leave, the monthly flex dollar allowance under the cafeteria plan and disability and life insurance and retirement (if applicable) for the first (3) months of military leave. During said period, the employee shall be required to pay to the City the amount that exceeds the monthly flex dollar allowance (if applicable). 3. After the first (3) months of military leave, the employee may continue said benefits at his cost. D.Pregnancy Disability Leave of Absence 1. An employee who is disabled due to pregnancy shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. The employee may elect to take a lesser period of leave. 2. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay. E.Family Leave - Upon a demonstration of need and subject to the following conditions, an employee may take leave or unpaid leave to care for his newborn Resolution XXXX7179 SBMSMA 22 of 29 infant, whether through parentage or adoption, or to care for a seriously ill or injured member of the employees "immediate family" as defined in Section 6. 1. Proof of the birth or adoption of a newborn infant or the serious illness/injury of the family member must be submitted to the City. 2. Requests for family leave must be submitted in writing to the employee's supervisor at the earliest possible date proceeding the time when the leave is to begin. 3. Operational needs of the City shall be relevant in determinations regarding the granting of family leave in accordance with the provisions of State and Federal Family Leave laws. 4. In the event of an extended family leave, the employee may be required to periodically report on the status of the situation giving rise to the leave. 5. Family leave may be granted only upon the recommendation of the Department Head and approval of the City Manager consistent with the provisions of State and Federal Family Leave laws. F.Catastrophic Leave - The purpose of the Catastrophic Leave Pool is to enable full time employees to receive and donate vacation, administrative leave, and CTO leave credits on an hour for hour basis to assist employees who have no leave and who will suffer a financial hardship due to prolonged illness or injury to themselves or a member of their immediate family. Sick Leave is excluded from this program. The following conditions shall apply to Catastrophic Leave: 1. Catastrophic Leave will be available only to employees who have exhausted their own paid leave through bona fide serious illness or accident. 2. The leave pool shall be administered by the Finance Department. 3. Employees must be in regular full-time appointed positions to be eligible to receive catastrophic leave. 4. Employees receiving Long-Term Disability payments are excluded from receiving catastrophic leave under this program. 5. All donations are to be confidential, between the donating employee and the Finance Department. 6. Employees donating to the pool must have 40 hours of paid leave available after making a donation. Resolution XXXX7179 SBMSMA 23 of 29 9 6 9 2 7. Donating employees must sign an authorization, including specifying the specific employee to be the recipient of the donation. 8. Donations will be subject to applicable tax laws. 9. The availability of Catastrophic Leave shall not delay or prevent the City from taking action to medically separate or disability retire an employee. 10. Catastrophic Leave due to illness or injury of an immediate family member may require medical justification as evidenced by a Physician’s Statement that the presence of the employee is necessary. 11. Catastrophic Leave due to the illness or injury of the employee will require medical justification as evidenced by a Physician’s Statement as to the employee’s condition. SECTION 23: HEALTH WELLNESS PROGRAM (Medical Maintenance Examination & Wellness Program) The City shall reimburse Employee, as a medical benefit, for Employee’s actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $5500 per fiscal year for the Marine Safety Lieutenant and in an amount not to exceed $4500 for the Marine Safety Officer classification, subject to the City’s normal reimbursement processes and requirements such expenses. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager or his/her designee. SECTION 24: MISCELLANEOUS A.Layoff: The City is to give Association (45) days prior notice before the effective date of any layoffs. During this (45) day period, the City will, upon request, meet and confer on the impact of the layoffs. B.Physical Fitness Program: The physical fitness program is a voluntary program for all union members utilizing vacation hours as compensation for achieving goals within this program. The details of this program are attached as Exhibit A to this MOU. SECTION 25: TERM The Memorandum of Understanding shall remain in full force and effect from July 1, 20241 until midnight June 30, 20246. SECTION 26: APPEALS Resolution XXXX7179 SBMSMA 24 of 29 A. Employees shall be allowed to appeal written reprimands to the Personnel Officer. Such appeals shall be filed within (14) calendar days. The decision of the Personnel Office shall be final. B. Hearings held pursuant to Personnel Rule 10.02, Automatic Resignation shall be interpreted to allow employees to present evidence showing the absence was for good cause and that circumstance prevented them from contacting the City. SECTION 27: REOPENER City and Association agrees to reconvene during the terms of this MOU to discuss all fringe benefits, including but not limited to health plans, the implementation of HSA or HRA programs for employee and retiree medical premiums. SECTION 28: RATIFICATION This Memorandum of Understanding is subject to approval and adoption by the City Council and ratification by the required number of the duly authorized representatives of the Association. Following such approval and adoption, the Memorandum of Understanding shall be implemented by the appropriate resolution(s), ordinance(s), or other written action of the City Council. IN WITNESS HEREOF, the parties have hereto caused this Memorandum of Understanding to be executed Date: Patrick Gallegos, Jill R. Ingram, Interim City Manager Date: Patrick Gallegos, Assistant City Manager CITY OF SEAL BEACH MARINE SAFETY ASSOCIATION: Date: Nick Bolin,Chris Pierce President Date: Jeremy JenksNick Bolin, Vice President Date: Carlos Rubio,Gregorio Daniel Teamsters Resolution XXXX7179 SBMSMA 25 of 29 9 6 9 2 EXHIBIT A SEAL BEACH MARINE SAFETY MANAGEMENT ASSOCIATION PHYSICAL FITNESS PROGRAM NOTE: The specific months for the testing is at the discretion of the City Manager or their designee. INTRODUCTION The physical fitness program is a voluntary program for all members of the Seal Beach Marine Safety Management Association (SBMSMA). SBMSMA members may receive up to twenty (20) hours of vacation time by meeting the requirements of the test at the end of each six ( 6) month period. The maximum time each member will be able to achieve is up to forty ( 40) vacation hours earned annually for as long as the member continues successfully in the program. ENROLLMENT To start the program, each member must contact the Physical Fitness Committee and advise them of your intent. Each member participating will be tested every six months, specifically in the months of December and June. A minimum level has been established for each test. Participants will have to move up a category or reach the maintenance level indicated on each test by age group. At one ( 1) year and six ( 6) months, participants will be required to be at the maintenance level. Once the maintenance level has been attained, participants will have to maintain that level on subsequent tests. Testing each six ( 6) month period will validate the awarding of vacation time. Testing may be conducted during on -duty hours at the Beach Supervisor discretion. The Physical Fitness Committee will perform the testing. ALLOCATION OF HOURS Employees will be awarded five hours for successfully completing each test as set forth in TESTING below. No employee shall receive any hours if they fail to meet the minimum standards for at least two of the four tests. PHYSICAL FITNESS COMMITTEE The Physical Fitness Committee shall be comprised of board members of the SBMSMA . The Physical Fitness Committee is established to retain administrative control over the program. All committee members shall be active participants in the program. The committee will be responsible for examining problems and disputes that arise from the Resolution XXXX7179 SBMSMA 26 of 29 administration of the program. The committee will be the formal arbitrators on these matters. REQUIRED TEST The physical fitness needs of Marine Safety Lifeguards fall into two areas: Cardio Fitness and Strength. The tests outlined below may be modified by the Physical Fitness Committee as necessary. The tests used in this program to evaluate fitness in these areas will be: Cardio fitness: 500 meter swim (October) 1 Mile Beach Run/Pier Swim (April) Strength: Push-up Sit-upsPull-ups MEDICAL COVERAGE Participation in the program will be on a voluntary basis. Any exercise workouts done under this program, i.e. weightlifting, contact sports, running, etc. would not be covered for benefits under Workers Compensation, the city will not provide blanket coverage for any injury which could conceivably be claimed under the pretext of participation in the Physical Fitness Program. CARDIO FITNESS TESTS – 500-meter pool swim (October) Members will swim 500 meters in a pool measured in yards or meters. The time needed to cover the distance is recorded and compared to the standards on the chart. This test is an excellent indication of the condition of the heart and lungs as it measures one’s aerobic capacity or the ability of the heart and lungs to utilize oxygen. Excellent 9:15-9:30 Good 9:31-10:00 Fair 10:01-10:30 Poor 10:31-11:00 Very Poor Above 11:01 Maintenance Level Below 10:00 Minimum Level 11:00 CARDIO FITNESS TESTS – 1 mile beach run and a pier swim (June) Members will run 1 mile on the beach and swim 1 length of the pier. The time needed to cover the distance is recorded and compared to the standards on the chart. This test is an excellent indication of the condition of the heart and lungs as it measures one’s aerobic capacity or the ability of the heart and lungs to utilize oxygen. Excellent 18:00-20:30 Good 20:31-23:00 Fair 23:01-25:00 Poor 25:01-26:00 Very Poor Above 26:00 Maintenance Level Below 25:00 Minimum Level 26:00 STRENGTH TESTS Resolution XXXX7179 SBMSMA 27 of 29 9 6 9 2 The body is maintained in a prone position supported by straight arms on the hands and toes. A partner places his/her fist on the ground below the member’s chest. The member must always keep his/her back straight and from the up position, lower him/ herself to the floor until his chest touches his/her partner' s hand and then push to the up position again. The member can rest in the up position. The total number of correct push- ups are recorded and compared to the standards on the chart. This test measures muscle endurance and a low level of muscle endurance indicates an inefficiency in movement and a poor capacity to perform work. This test measures mainly the muscles of both the chest and upper arm which are important in physical demands of swimming and propelling surf craft. Under 30 30-39 40-49 50+ Excellent 43-37-30-25+ Good 28-42 23-36 20-29 17-24 Fair 20-27 17-22 15-19 12-16 Poor 5-19 3-16 2-14 2-11 Very Poor 4-below 2-below 2-below 1-below Maintenance Level 40 35 25 18 Minimum Level 18 15 13 11 PULL- UPS Members will hold the bar with the palms away from the body. Arms are extended out straight in the beginning position with the feet off the ground. Members must pull his/her body up to a position where his chin is above the bar for one repetition; the total number of correct pull- ups are recorded and compared to the standards on the chart. In lieu of pull- ups, members may choose to do the " Lat Pull". Members are required to pull down seventy percent ( 70%) of their body weight ten ( 10) times to achieve maintenance level. Under 30 30-39 40-49 50+ Excellent 9 & above 7 & above 6 & above 5 & above Good 8 6 5 4 Fair 6-7 4-5 3-4 2-3 Poor 5 3 2 1 Very Poor 4 & below 2 & below 1 & below 0 Maintenance Level 8 6 5 4 Minimum Level 5 3 2 1 SIT- UPS Members start by lying on his/ her back, knees bent, heels flat on the floor and arms folded across their chest. A partner holds the feet down. In the up position, the officer will touch his/her elbows to his knees and then return to the starting position, not placing their shoulder blades on the ground before starting the next sit- up. This is continuous exercise, no resting. The total number of correct sit- ups is recorded and compared to the standards on the chart. This test measures muscular endurance in the abdominal muscle group, an area of great concern to the sedentary individual. Much evidence exists of the correlation between poor abdominal muscle development, excessive fat tissue and lower back problems. Resolution XXXX7179 SBMSMA 28 of 29 Under 30 30-39 40-49 50+ Excellent 51 & above 45 & above 40 & above 36 & above Good 40-50 34-44 27-39 23-39 Fair 35-39 29-33 20-26 16-22 Poor 24-34 18-28 7-19 6-15 Very Poor 23-below 17-below 6-below 5-below Maintenance Level 45 40 35 30 Minimum Level 30 25 20 15 Agenda Item K AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Joe Bailey, Marine Safety/Lifeguard Chief SUBJECT:Adopting a Resolution to Change and Update the Existing Marine Safety Part-Time Job Classifications and Descriptions ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7588 approving the changes and updates to the City of Seal Beach Marine Safety part-time job classifications. BACKGROUND AND ANALYSIS: Current job classifications for the Marine Safety part-time staff includes Beach Lifeguard, Junior Lifeguard Coordinator, Beach Operations Supervisor, and Rescue Boat Operator. While these titles have worked over the years, the industry standard has changed. In the past, Lifeguards were given yearly step increases by meeting hours worked minimums. The new suggested system takes into consideration hours worked and places an emphasis on certifications achieved. The requested changes are as follows: 1. Change “Beach Lifeguard” classification to “Lifeguard I”. A “Lifeguard I” will have successfully completed Marine Safety’s Basic Lifeguard Academy, be cardiopulmonary resuscitation (CPR)/ automated external defibrillator (AED) certified, Emergency Medical Responder certified, Recurrent Training, Requalification Swim, and on-the-job training. 2. Change the “Junior Lifeguard Coordinator” classification to “Lifeguard II”. A “Lifeguard II” will have successfully completed all the “Lifeguard I” requirements, be certified as an Emergency Medical Technician, Rescue Watercraft certified, and will have completed a Beach Driving and all-terrain vehicle (ATV) class. 3. Change “Beach Operations Supervisor and Rescue Boat Operator” to “Ocean Lifeguard Specialist” (OLS). An Ocean Lifeguard Specialist will have successfully completed all the “Lifeguard I and II” requirements and certifications, be certified as a rescue self-contained underwater breathing apparatus (SCUBA) diver, a Page 2 1 9 4 8 Rescue Boat Operator or Deck Hand, a CPR instructor through the American Heart Association or the American Red Cross and hold a valid Boater Safety card. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7588 approving the changes and updates to the to the City of Seal Beach Marine Safety part-time job classifications. SUBMITTED BY: NOTED AND APPROVED: Joe Bailey Patrick Gallegos Joe Bailey, Marine Safety/Lifeguard Chief Patrick Gallegos, Interim City Manager ATTACHMENTS: A. Resolution 7588 B. City Part-time Job Classification List C. Lifeguard I Job Description D. Lifeguard II Job Description E. Ocean Lifeguard Specialist Job Description DECEMBER 2024 FLSA: NON-EXEMPT LIFEGUARD I DEFINITION Under general supervision, performs a variety of duties related to ensuring the safety and enjoyment of the public beach and ocean front; lifeguards the beach and ocean area from an assigned tower or in an emergency rescue vehicle in the first-line protection of lives and property of beach patrons; continually monitors water conditions and beach activities; advises patrons of the City’s safety policies and enforces them when necessary; performs ocean rescues and first aid procedures as required; and performs related work as required. SUPERVISION RECEIVED AND EXERCISED Receives general supervision from the Area Supervisor. Exercises no supervision over staff. CLASS CHARACTERISTICS This is a journey-level class that performs the full range of lifeguarding duties required to ensure that the assigned City beach is maintained at the highest level of safety for public use. EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only) Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job. Acts as lifeguard in a specific assigned beach area during public beach usage times. Initiates water rescue procedures. Interacts with the public several times daily to advise, implement and enforce City policies, rules and procedures. Performs ocean water rescues using the appropriate methods and equipment. Responds to first aid emergencies including basic first aid, adult and/or child cardiopulmonary resuscitation (CPR) and/or AED use as necessary. Observes safe work methods and makes appropriate use of related safety and medical equipment as required. Scans ocean water conditions and advises/warns patrons of potentially dangerous conditions. Scans beach activities to ensure a safe and enjoyable recreation environment. Enforces beach closures when conditions dictate. Maintains daily records of activities and completes reports on same. Performs other duties as assigned. Operates as a Junior Lifeguard Instructor, providing daily oversight, instruction, and leadership for participants, create lessons plans, counsel, plan field trips, make presentations, ensure junior guards and instructor staff perform in s safe manner, when assigned. QUALIFICATIONS Knowledge of: Lifeguard I Page 2 of 3 9 6 1 1 Principles and methods of lifeguarding and ocean water rescue, adult and/or child cardiopulmonary resuscitation (CPR) methods, and first aid. Applicable Federal, State, and local laws, rules, regulations, ordinances, and organizational policies and procedures relevant to the assigned area of responsibility. Basic mathematical principles. English usage, spelling, vocabulary, grammar, and punctuation. Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors and City staff. Ability to: Provide courteous assistance to beach patrons. Perform physically demanding rescues, and make preventative actions under difficult, dangerous and stressful conditions, including large surf, and strong currents near rocks, jetties and piers; perform underwater rescue and recovery using mask, snorkel, & fins; making sound safety based decisions. Handle medical emergencies and injuries in a calm and effective manner, including providing basic first aid and/or adult and child cardiopulmonary resuscitation (CPR). Understand and follow oral and written instructions. Use English effectively to communicate in person, over the telephone, and in writing. Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines. Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work. Education and Experience: Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be: Equivalent to the completion of the twelfth (12th) grade. 17 years of age by April 1st of the year hired. Completion of the Seal Beach Basic Lifeguard training academy. Licenses and Certifications: Possession of, or ability to obtain, a valid California Driver’s License by time of appointment Must successfully complete the Seal Beach Basic Lifeguard Training Academy American Red Cross or American Heart Association CPR/AED for the Healthcare Provider American Red Cross Emergency Medical Responder Must successfully complete and pass the annual Seasonal Ocean Lifeguard recertification process PHYSICAL DEMANDS Must possess the ability to perform work that may involve lifting children and adults up to 150 pounds or more with assistance. Must possess the strength and mobility to run, stand, stoop, reach, bend, climb, and swim, while in swimwear. Must be in physical condition sufficient to stay in water for prolonged periods of time, work in extreme heat and/or cold, and the outdoors. Vision, and hearing, which must be in a normal range as measured by a standard audiogram, should be good enough to see and hear adults and children in life and/or health safety endangering situations. Must also possess the vision to read Lifeguard I Page 3 of 3 9 6 1 1 printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard lifeguarding equipment. Positions in this classification occasionally bend, stoop, kneel, reach, and push and pull drawers open and closed to retrieve and file information. ENVIRONMENTAL ELEMENTS Employees work outdoors and are exposed to variable weather conditions including strong sunlight, salt water, wind and sand. May be exposed to chlorine, acids, and other chemicals at other City aquatics facilities as well as blood and body fluids rendering first aid and cardiopulmonary resuscitation. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures. DECEMBER 2024 FLSA: NON-EXEMPT LIFEGUARD II DEFINITION Under general direction, performs a variety of supervisory duties in connection with ensuring the safety and enjoyment of the City’s public beach and pool areas; oversees the lifeguard activities at the beach or pool; advises patrons of the City’s safety policies and enforces them when necessary; performs rescues and first aid procedures; and performs related work as required. SUPERVISION RECEIVED AND EXERCISED Receives general direction from the Ocean Lifeguard Specialist. Exercises direct supervision over assigned staff in a specific area. CLASS CHARACTERISTICS Assigned to a specific waterfront area, this is the first supervisory-level class in the beach lifeguard series responsible for providing the highest possible level of public safety. When required, the incumbent performs the full range of lifeguarding duties, including motorized patrol, water rescues and emergency first aid, to ensure that the assigned City waterfront or pool area is maintained at the highest level of safety for public use. EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only) Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job. Patrols assigned beach area in a motorized vehicle while observing beach activity, water and weather conditions. Monitors crowds for possible unsafe behavior and policy/procedure violations. Allocates Lifeguard personnel. Acts as a lifeguard in a specific beach area during public beach usage times. Initiates water rescue procedures; performs ocean water rescues using the appropriate methods and equipment. Supports assigned staff by interacting regularly with the public to advise, implement and enforce City policies, rules and procedures. Responds to first aid emergencies including basic first aid, adult and/or child cardiopulmonary resuscitation (CPR) and/or AED use as necessary. Observes and enforces safe work methods and makes appropriate use of related safety and medical equipment as required. Scans ocean water conditions and advises/warns patrons of potentially dangerous conditions. Scans beach activities to ensure a safe and enjoyable recreation environment. Enforces beach closures when conditions dictate. Supervises, teaches and mentors tower guards and pool lifeguards assigned to their area of responsibility. Performs minor repairs and preventative maintenance to vehicles and equipment. Lifeguard II Page 2 of 3 9 6 1 0 As an Operations Dispatcher: Operate electronic communications, including 800mhz base station, mobile and portable radios, public address systems, computers and software, paging systems; provide documentation of emergency and routine call logs, answer emergency calls and direct emergency units, collect and report weather and environmental information to the public and National Weather Service. Performs other duties as assigned. Ability to work as a Junior Lifeguard Coordinator or Junior Lifeguard Instructor, providing daily oversight, instruction, and leadership for participants, create lessons plans, counsel, plan field trips, make presentations, ensure junior guards and instructor staff perform in a safe manner, when assigned. QUALIFICATIONS Knowledge of: Principles and methods of lifeguarding and ocean water rescue, adult and child cardiopulmonary resuscitation (CPR) methods, and first aid. USLA manual, Orange County EMS standards, Department standing orders and RWC operations. Safe operating techniques for motorized and non-motorized equipment routinely used in lifeguarding activities. Applicable Federal, State, and local laws, rules, regulations, ordinances, and organizational policies and procedures relevant to the assigned area of responsibility. Basic techniques for directing, motivating and evaluating assigned staff personnel. Basic mathematical principles. Modern office practices, methods, and computer equipment and applications related to the area of assignment. English usage, spelling, vocabulary, grammar, and punctuation. Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff. Ability to: Issue clear and concise instructions in emergency situations. Provide courteous assistance to beach and pool patrons. Operate motorized equipment including Units, ATV’s and RWC’s in crowded water and beach situations. Meet the physical requirements necessary to safely and effectively perform the assigned duties. Determine work priorities within established guidelines; lead, direct and motivate staff effectively. Handle medical emergencies and injuries in a calm and effective manner, including providing basic first aid and/or adult and child cardiopulmonary resuscitation (CPR). Perform basic administrative support work with accuracy, speed, and minimal supervision. Learn, interpret, and apply administrative and departmental policies and procedures. Understand and follow oral and written instructions. Operate modern office equipment including computer equipment and specialized software applications programs. Use English effectively to communicate in person, over the telephone, and in writing. Use tact, initiative, prudence, and independent judgment within general policy and procedural guidelines. Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work. Lifeguard II Page 3 of 3 9 6 1 0 Education and Experience: Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be: Equivalent to the completion of the twelfth (12th) grade and, completion of the Seal Beach Basic Lifeguard training academy. Must be 18 years of age or older. All qualifications listed in the Lifeguard I classification. Licenses and Certifications: Possession of, or ability to obtain, a valid California Driver’s License by time of appointment Successful completion of the Seal Beach Basic Lifeguard Training Academy American Red Cross or American Heart Association CPR/AED for the Healthcare Provider Certified EMT authorized to work under the Orange County EMS Authority. Successful completion of the Rescue Water Craft operator course. Completion of recurrent supervisor training. PHYSICAL DEMANDS Must possess the strength and mobility to run, stand, stoop, reach, bend, climb, and swim, while in swimwear. Must be in physical condition sufficient to stay in water for prolonged periods of time, work in extreme heat and/or cold, and the outdoors. Hearing, which must be in a normal range as measured by a standard audiogram, should be good enough to see and hear adults and children in life and/or health safety endangering situations. Must also possess the mobility to work in an office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office and duplicating equipment. Positions in this classification occasionally bend, stoop, kneel, reach, and push and pull drawers open and closed to retrieve and file information. Must possess the ability to perform work that may involve lifting children and adults up to 150 pounds or more with assistance. ENVIRONMENTAL ELEMENTS Employees work outdoors and are exposed to variable weather conditions including strong sunlight, salt water, wind and sand. May be exposed to chlorine, acids, and other chemicals at other City aquatics facilities, as well as, blood and body fluids rendering first aid and cardiopulmonary resuscitation. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures. DECEMBER 2024 FLSA: NON-EXEMPT OCEAN LIFEGUARD SPECIALIST DEFINITION Under general direction, performs a variety of supervisory duties in connection with ensuring the safety and enjoyment of the City’s public beach and pool areas; oversees the lifeguard activities at the beach or pool; advises patrons of the City’s safety policies and enforces them when necessary; performs rescues and first aid procedures; and performs related work as required with ability to fill the Beach Operations Supervisor role. SUPERVISION RECEIVED AND EXERCISED Receives general direction from the Marine Safety Officer. Exercises direct supervision over assigned staff. CLASS CHARACTERISTICS This is the highest supervisory-level class in the recurrent beach lifeguard series, responsible for providing the highest possible level of public safety. When required, the incumbent performs the full range of lifeguarding duties, including motorized patrol, water rescues and emergency first aid, to ensure that the assigned City waterfront or pool area is maintained at the highest level of safety for public use. EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only) Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job. Patrols assigned beach area in a motorized vehicle while observing beach activity, water and weather conditions. Monitors crowds for possible unsafe behavior and policy/procedure violations. Allocates Lifeguard personnel. Acts as a lifeguard in a specific beach area during public beach usage times. Initiates water rescue procedures; performs ocean water rescues using the appropriate methods and equipment. Supports assigned staff by interacting regularly with the public to advise, implement and enforce City policies, rules and procedures. Responds to first aid emergencies including basic first aid, adult and/or child cardiopulmonary resuscitation (CPR) and/or AED use as necessary. Observes and enforces safe work methods and makes appropriate use of related safety and medical equipment as required. Scans ocean water conditions and advises/warns patrons of potentially dangerous conditions. Scans beach activities to ensure a safe and enjoyable recreation environment. Supervises, teaches and mentors tower guards and pool lifeguards assigned to their area of responsibility. Fills the role of Beach Operations Supervisor when needed. As an Operations Dispatcher: Operate electronic communications, including 800mhz base station, mobile and portable radios, public address systems, computers and software, paging systems; provide Lifeguard Specialist Page 2 of 3 9 6 0 9 documentation of emergency and routine call logs, answer emergency calls and direct emergency units, collect and report weather and environmental information to the public and National Weather Service. Ability to work as a Junior Lifeguard Coordinator or Junior Lifeguard Instructor, providing daily oversight, instruction, and leadership for participants, create lessons plans, counsel, plan field trips, make presentations, ensure junior guards and instructor staff perform in safe manner, when assigned. Performs other duties as assigned. QUALIFICATIONS Knowledge of: Principles and methods of lifeguarding and ocean water rescue, adult and child cardiopulmonary resuscitation (CPR) methods, and first aid. USLA manual, Orange County EMS standards, Department standing orders, RWC operations, and Rescue Boat Operations. Safe operating techniques for all motorized and non-motorized equipment routinely used in lifeguarding activities. Applicable Federal, State, and local laws, rules, regulations, ordinances, and organizational policies and procedures relevant to the assigned area of responsibility. Basic techniques for directing, motivating and evaluating assigned staff personnel. Basic mathematical principles. Modern office practices, methods, and computer equipment and applications related to the area of assignment. English usage, spelling, vocabulary, grammar, and punctuation. Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and city staff. Ability to: Issue clear and concise instructions in emergency situations. Provide courteous assistance to beach and pool patrons. Operate motorized equipment including units, ATV’s and Rescue Watercraft in crowded water and beach situations. Operates or fulfills the role of a Rescue Boat Operator or Rescue Boat Deckhand. Represent the Marine Safety Department in community outreach initiatives. Meet the physical requirements necessary to safely and effectively perform the assigned duties. Determine work priorities within established guidelines; lead, direct and motivate staff effectively. Handle medical emergencies and injuries in a calm and effective manner, including providing basic first aid and/or adult and child cardiopulmonary resuscitation (CPR). Perform basic administrative support work with accuracy, speed, and minimal supervision. Learn, interpret, and apply administrative and departmental policies and procedures. Understand and follow oral and written instructions. Operate modern office equipment including computer equipment and specialized software applications programs. Use English effectively to communicate in person, over the telephone, and in writing. Use tact, initiative, prudence, and independent judgment within general policy and procedural guidelines. Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work. Lifeguard Specialist Page 3 of 3 9 6 0 9 Education and Experience: Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be: Equivalent to the completion of the twelfth (12th) grade and, completion of the Seal Beach Basic Lifeguard training academy. One thousand (1000) hours of Beach Lifeguard experience. Licenses and Certifications: Possession of, or ability to obtain, a valid California Driver’s License by time of appointment. Successful completion of the Seal Beach Basic Lifeguard Training Academy Certified EMT authorized to work under the Orange County EMS Authority. Successful completion of the Rescue Watercraft operator course. Completion of recurrent supervisor training SCUBA CPR/AED Instructor Certification PHYSICAL DEMANDS Must possess the strength and mobility to run, stand, stoop, reach, bend, climb, and swim, while in swimwear. Must be in physical condition sufficient to stay in water for prolonged periods of time, work in extreme heat and/or cold, and the outdoors. Hearing, which must be in a normal range as measured by a standard audiogram, should be good enough to see and hear adults and children in life and/or health safety endangering situations. Must also possess the mobility to work in an office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office and duplicating equipment. Positions in this classification occasionally bend, stoop, kneel, reach, and push and pull drawers open and closed to retrieve and file information. Must possess the ability to perform work that may involve lifting children and adults up to 150 pounds or more with assistance. ENVIRONMENTAL ELEMENTS Employees work outdoors and are exposed to variable weather conditions including strong sunlight, salt water, wind and sand. May be exposed to chlorine, acids, and other chemicals at other City aquatics facilities, as well as blood and body fluids rendering first aid and cardiopulmonary resuscitation. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures. Agenda Item L AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Michael Henderson, Chief of Police SUBJECT:Homeland Security Grant Program Agreement to Transfer Property or Funds for Fiscal Year 2022 ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7589: 1. Approving the Agreement to Transfer Property or Funds for Fiscal Year Homeland Security Grant Program Purposes; and, 2. Authorizing the City Manager to execute the agreement and any related documents on the City’s behalf that are necessary for the transfer of property or funds under the Fiscal Year 2022 Homeland Security Grant Program. BACKGROUND AND ANALYSIS: The Federal Homeland Security Appropriations Act provides funding to address the needs of high-risk urban areas for planning, equipment/services, training, and exercises through the Homeland Security Grant Program (“HSGP”). Additionally, the Department of Homeland Security (“Homeland Security”) is funding efforts nationally to combat terrorism and respond to emergencies and hazards. The City of Seal Beach (City) is located in the County of Orange and the Anaheim/Santa Ana Urban Area and is eligible to receive financial assistance in the form of funds, equipment, technology and services, through Homeland Security sub-grants from the County of Orange. In order to facilitate the transfer of Homeland Security Grant funds, the City must enter into agreements with the County of Orange. The City of Seal Beach City Manager must be designated by resolution to execute on behalf of the City of Seal Beach to obtain grant funds through the Homeland Security Grant Program. The Department of Homeland Security is funding efforts nationally to combat terrorism and respond to emergencies and hazards. In order to receive the funds, entities must cooperate with the grant requirements and have a designated signer of Page 2 1 9 4 7 record. This agreement allows the City to receive the funds and equipment as provided by the grant. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved the staff report and resolution as to form. FINANCIAL IMPACT: The City will accept and expend funds if received. Acceptance of these funds may offset public safety expenditures servicing the City for a variety of needs which may fall under the umbrella of Homeland Security. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7589 1. Approving the Agreement to Transfer Property or Funds for FY 2022 Homeland Security Grant Program Purposes; and, 2. Authorizing the City Manager to execute the agreement and any related documents on the City’s behalf that are necessary for the transfer of property or funds under the Fiscal Year 2022 Homeland Security Grant Program. SUBMITTED BY: NOTED AND APPROVED: Michael Henderson Patrick Gallegos Michael Henderson, Chief of Police Patrick Gallegos, Interim City Manager Prepared by: Brian Gray, Emergency Services Coordinator Page 3 1 9 4 7 ATTACHMENTS: A. Resolution 7589 B. Agreement to Transfer Property or Funds for FY2022 Homeland Security Grant Program Purposes C. Agreement Attachments A-C RESOLUTION 7589 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE COUNTY OF ORANGE TO TRANSFER PROPERTY OR FUNDS FOR FY22 HOMELAND SECURITY GRANT PROGRAM WHEREAS, The Federal Homeland Security Appropriations Act provides funding to address the needs of high risk urban areas through planning, equipment/services, training, and exercises through the Homeland Security Grant Program (“HSGP”); and, WHEREAS, The City of Seal Beach is located in the County of Orange and the Anaheim/Santa Ana Urban Area, and is eligible to receive financial assistance in the form of funds, equipment, technology and services, through Homeland Security sub-grants from the County of Orange; and, WHEREAS, The City must enter into agreements with the County of Orange to facilitate the transfer of Homeland Security Grant funds. The City of Seal Beach City Manager must be designated by resolution to execute on behalf of the City of Seal Beach to obtain grant funds through the Homeland Security Grant Program; and, WHEREAS, The Department of Homeland Security is funding efforts nationally to combat terrorism and respond to emergencies and hazards. In order to receive the funds, entities must cooperate with the grant requirements and have a designated signer of record. This agreement allows the City to receive the funds and equipment as provided by the grant. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. The foregoing recitals are true and correct and are hereby adopted by reference as set forth in full. SECTION 2. The City Council hereby approves the agreement with the County of Orange to Transfer Property or Funds for FY22 Homeland Security Grant Program purposes. SECTION 3. The City Council hereby authorizes the City Manager to execute the Agreement on behalf of the City of Seal Beach and all related documents that are necessary for the transfer of property or funds under the Fiscal Year 2022 Homeland Security Grant Program. 9 6 9 8 PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members _________________________________________ NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } 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 7589 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk Agenda Item M AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Michael Henderson, Chief of Police SUBJECT:Approving an Amendment to the Classification Plan and Designating the Pay Grade and Status of the Information Technology Manager Classification ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7590: 1. Authorizing an amendment to the Classification Plan to reclassify the Management Analyst position within the Police Department to an Information Technology Manager; and, 2. Designating the Information Technology Manager job classification to Grade 36 on the Seal Beach Full Time Pay Schedule. BACKGROUND AND ANALYSIS: The City of Seal Beach currently has six (6) Management Analysts assigned to multiple departments throughout the city, including within the Police Department. The Management Analyst position within the Police Department has spearheaded projects that include overseeing critical IT infrastructure, implementing cybersecurity protocols, and managing complex technological systems throughout the City. Reclassifying the Management Analyst position within the Police Department to an Information Technology (IT) Manager more appropriately reflects the responsibilities being performed. The IT Manager spearheads vital information technology programs for maintaining uninterrupted IT services across all departments, enhancing service delivery, and leveraging technology to improve operations, expand capabilities, and meet the evolving needs of the community. Under the general direction of the City Manager or their designee, the IT Manager will continue to lead and coordinate the activities of the City’s IT Division. This includes overseeing all information technology services and projects, ensuring that technological solutions meet the City’s operational needs, maintaining security protocols, and managing IT staff and contractors. Page 2 1 9 3 4 The Management Analyst position in the Police Department is represented by the Mid-Management and Confidential Employees Association. The Personnel Officer (City Manager) has complied with the requirements of Article II, Section 7.C. of the Employer-Employee Relations resolution in determining the new IT Manager classification should remain within the Mid-Management and Confidential Employees Association. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: The IT Manager job classification is proposed to align with Grade 36 on the City of Seal Beach Full Time Pay Schedule. The annual salary range under Grade 36 has a minimum annual salary of $117,264.61 and a maximum annual salary of $142,535.86. The reclassification of the Management Analyst position within the Police Department will result in an increase in salaries within the Seal Beach Police Department but will not increase the position count of the City. For the current fiscal year, the department will realize savings due to anticipated position vacancies. In the next budget year, the department will adjust its budget to reflect the reclassification. STRATEGIC PLAN: This reclassification aligns with the City’s Strategic Plan goal to maintain and improve operational efficiency through technological advancement and effective management. RECOMMENDATION: That the City Council adopt Resolution 7590: 1. Authorizing an amendment to the Classification Plan to reclassify the Management Analyst position within the Police Department to an Information Technology Manager; and, 2. Designating the Information Technology Manager job classification to Grade 36 on the Seal Beach Full Time Pay Schedule. Page 3 1 9 3 4 SUBMITTED BY: NOTED AND APPROVED: Michael Henderson Patrick Gallegos Michael Henderson, Chief of Police Patrick Gallegos, Interim City Manager Prepared by: Nick Nicholas, Support Services Bureau Captain ATTACHMENTS: A. Resolution 7590 B. IT Manager Job Specification RESOLUTION 7590 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE AMENDMENT TO THE CLASSIFICATION PLAN AND DESIGNATING THE PAY GRADE AND STATUS OF THE INFORMATION TECHNOLOGY MANAGER POSITION WHEREAS, the City of Seal Beach currently has six (6) Management Analysts assigned to various departments, including one under the direction of the Chief of Police; and, WHEREAS, the responsibilities of the current Management Analyst serving in the Police Department have evolved significantly to align with an Information Technology Manager, necessitating a reclassification to properly reflect the duties being performed; and, WHEREAS, the reclassification of the Management Analyst position within the Police Department to Information Technology Manager will ensure alignment with its current responsibilities and prepare the City for long-term IT stability and innovation; and, WHEREAS, the proposed Information Technology Manager will be classified within Grade 36 of the Full Time Salary Schedule; and, WHEREAS, the financial impact of this reclassification for the current fiscal year will be mitigated by the savings from vacancies within the Police Department for the remaining fiscal year or until such time costs are recovered; and, WHEREAS, the City’s Strategic Plan emphasizes maintaining and improving operational efficiency through technological advancement and effective management, which this reclassification supports. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the amendment to the Classification Plan to include the classification of Information Technology Manager, as more fully described in the staff report accompanying this Resolution. Section 2. The City Council hereby designates the pay grade and status of the Information Technology Manager position to align with Grade 36 of the Full Time Salary Schedule. Section 3. The Council authorizes the City Manager or their designee to 9 6 8 6 execute all necessary documents and take any actions required to implement the reclassification of the Management Analyst position within the Police Department to Information Technology Manager. PASSED, APPROVED, AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7590 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk Information Technology (IT) Manager Page 1/4 Information Technology (IT) Manager Department/Division:City-Wide Reports To:City Manager or their designee Provides Direction To:IT Project Contractors FLSA Exemption Status:Non-Exempt Date Prepared:December 9, 2024 Date Adopted by City Council:December 9, 2024 GENERAL PURPOSE Under the general direction of the City Manager or their Designee, the IT Manager leads and coordinates the activities of the City’s Information Technology (IT) Division. This includes overseeing all information technology services and projects, ensuring that technological solutions meet the City’s operational needs, maintaining security protocols, and managing IT staff and contractors. DISTINGUISHING CHARACTERISTICS The Information Technology (IT) Manager leads the City’s technological efforts and manages the IT operations across all departments. This is a dynamic and hands-on role, responsible for overseeing the design, implementation, and security of the City's IT infrastructure. The successful candidate will have a strategic vision for technology that supports the City's goals and operations, including public safety, public works, administrative services, and citizen engagement platforms. This is an excellent opportunity for a technology leader with a passion for public service, strong technical expertise, and the ability to drive strategic initiatives. ESSENTIAL FUNCTIONS The duties listed below are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related, or a logical assignment to the class. Additionally, due to the nature of the position, flexibility is required, and the incumbent may need to work evenings, weekends, or respond to after-hours emergencies when necessary. Leadership & Strategy: o Develop, implement, and maintain an IT strategic plan that aligns with the City’s goals, ensuring the effective integration of new technologies and innovation to improve city services. o Act as a technology advisor to City leadership, offering insights and guidance on best practices, emerging technologies, and IT solutions that can optimize efficiency across departments. o Lead, supervise, and mentor IT staff, fostering a culture of continuous learning and professional development. Systems & Network Management: o Manage and maintain all IT systems including servers, network infrastructure, hardware, software applications, databases, and telecommunications across multiple departments. Information Technology (IT) Manager Page 2/4 o Oversee the administration of the City’s enterprise applications (such as financial management systems, HR systems, and public safety platforms) to ensure uninterrupted service. o Maintain high availability, reliability, and performance of key city systems, including public safety systems such as Computer-Aided Dispatch (CAD), Mobile Data Terminals (MDTs), surveillance systems, access control, and body-worn cameras. Cybersecurity & Compliance: o Develop and enforce robust cybersecurity protocols to protect the City’s data and IT systems from unauthorized access, breaches, and cyber threats. o Manage security measures including firewalls, encryption, anti-virus software, and intrusion detection systems. o Ensure compliance with local, state, and federal regulations regarding data security, privacy, and IT governance, including CJIS and HIPAA standards where applicable. Project Management: o Plan, execute, and oversee IT-related projects such as software upgrades, system migrations, network expansions, and implementation of new technologies. o Manage relationships with third-party vendors, ensuring that contracts for IT services, software, and hardware meet the City’s needs and are completed on time and within budget. o Evaluate and recommend new technology solutions, preparing cost-benefit analyses and budget proposals for IT-related projects. Public Safety Technology Support: o Provide technical support to the Seal Beach Police Department and other city departments, ensuring that critical public safety systems remain operational 24/7. o Coordinate the management of mobile data systems, surveillance technologies, and communications platforms for public safety and emergency services. o Work closely with law enforcement to provide technical expertise, including video extraction from surveillance systems, mobile device forensics, and support for unmanned aerial systems (UAV/drones). User Support & Training: o Oversee and provide technical support for city staff, resolving complex IT issues and ensuring end-users have the necessary tools to perform their duties. o Develop and implement IT training programs to improve technology adoption and proficiency across departments. Disaster Recovery & Business Continuity: o Develop and maintain the City’s disaster recovery and business continuity plans to ensure the city can recover from IT disruptions swiftly. o Conduct regular testing and audits of backup systems and recovery procedures to mitigate risks of data loss or downtime. These are not to be construed as exclusive or all inclusive. Other duties may be required and assigned. QUALIFICATIONS GUIDELINES Knowledge of: IT infrastructure management, including networks, servers, database systems, and cloud computing. Information Technology (IT) Manager Page 3/4 Public safety technologies, including CAD systems, body-worn cameras, mobile data terminals, and surveillance systems. Cybersecurity principles and best practices, including firewall administration, endpoint security, and network monitoring tools. Project management techniques and experience leading large-scale IT implementations. Public sector IT governance, compliance with federal/state IT regulations, and public procurement processes Ability to: Plan and implement IT strategies and solutions that meet the unique needs of municipal operations. Lead, train, and motivate IT staff, ensuring a high level of performance and professionalism. Communicate complex technical issues to non-technical stakeholders effectively. Manage multiple priorities and projects simultaneously in a fast-paced environment. Maintain discretion, confidentiality, and data security when handling sensitive information. Education/Training/Experience: Bachelor’s degree from an accredited college or university in Information Technology, Computer Science, Management Information Systems, or a closely related field is required. Advanced degree (Master’s or certifications such as PMP, CISSP, ITIL, or equivalent) is highly desirable. Experience & Training: A minimum of five (5) years of progressively responsible experience in information technology management, including at least two (2) years in a supervisory or management role. Experience working in a government or public sector setting is highly desirable. Licenses, Certificates; Special Requirements: A valid Class C California driver’s license, acceptable driving record, and evidence of insurance. Ability to work extended hours in order to meet shift needs, complete reports, attend meetings, or conduct investigative business. Ability to work under sometimes unsafe and uncomfortable conditions where exposure to environmental factors such as odors, dust, noise, human or animal violence, disease, or machinery may constitute discomfort and where there is risk of injury, usually requiring minimal recovery. PHYSICAL AND MENTAL DEMANDS The physical and mental demands described here are representative of those that must be met by employees to successfully perform the essential functions of this class. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. Physical Demands While performing the duties of this class, the employee is constantly required to sit, and occasionally to stand and walk. The sensory demands include the ability to talk, and hear, both in person and by telephone; use hands to finger, handle, feel or operate computer hardware and standard office equipment; and reach with hands and arms above and Information Technology (IT) Manager Page 4/4 below shoulder level. The employee occasionally lifts and carries records and documents weighing more than 20 pounds. Specific vision abilities required by this job include close vision and the ability to adjust focus. Mental Demands While performing the duties of this class, the employee is regularly required to use oral and written communication skills; read and interpret data; thoroughly analyze and solve problems; use math and mathematical reasoning; establish priorities and work on multiple assignments and projects concurrently; and interact appropriately with law enforcement personnel, general public, and others in the course of work. WORK ENVIRONMENT This position performs office and field work. When assigned to the office setting, the noise levels are typically quiet, at or below 85 decibel levels. When in the field, employees are assigned to a police vehicle and are subject to variable weather conditions and traffic. Agenda Item N AGENDA STAFF REPORT DATE: December 9, 2024 TO: Honorable Mayor and City Council THRU: Patrick Gallegos, Interim City Manager FROM: Barbara Arenado, Director of Finance/City Treasurer SUBJECT: Adopt Agreements and Resolutions Necessary to Implement the Increase to the City’s Sales and Use Tax Ordinance as a Result of Measure GG ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt: 1. Resolution 7591 approving and authorizing the City Manager to execute new agreements with the California Department of Tax and Fee Administration for Implementation of a Local Transactions and Use Tax to implement Measure GG’s increase to such tax; and, 2. Resolution 7592 authorizing Examination of Transactions and Use Tax records. BACKGROUND AND ANALYSIS: On November 5, 2024, Seal Beach voters passed Measure GG, a sales and use tax ordinance. The approved ordinance provides that the increase of ½% new tax will be collected by the California Department of Tax and Fee Administration (“CDTFA”) and remitted to the City, as with existing sales and use tax revenues. As a condition of collecting, accounting for, and remitting the tax revenue for the City, CDTFA requires that the City enter into administrative agreements for CDTFA to 1) conduct the preparatory work necessary before the City’s tax can be collected; and 2) collect and administer the tax on behalf of the City. Under each agreement, the City must compensate CDTFA for the services pursuant to rates established by State statute and regulation. Costs will be deducted from revenue before it is remitted to the City. The CDTFA collects the City’s sales tax revenue, and the agency currently performs these services for cities throughout the State, including Seal Beach. The agreements presented (Attachments C and D) are from templates that are used throughout the State and not subject to individual amendment. In addition to the Page 2 agreements, CDTFA requires that the City designate certain City officers who are authorized to review confidential sales tax receipt records. The attached resolution (Attachment B) authorizes the City Manager and Director of Finance/City Treasurer to review the records, which is current practice. The proposed resolution also authorizes the City’s current sales tax consultant, Hinderliter, de Llamas & Associates (HdL), to review sales tax records on the City’s behalf as well. HdL’s services include verifying that the City receives the revenue to which it is entitled, and searching for additional revenue from sales and use tax sources. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: The CDTFA will begin collection of the increased transaction and use tax on April 1, 2025. Based upon the timing of the implementation for collection, it is expected that the City of Seal Beach will begin to receive remittance of the new transaction and use tax in July 2025. The increased revenue is unknown at this time but is anticipated as approximately $3.0 million based upon the projection from HdL. Sufficient funding has been included in the Adopted Budget for administrative costs but may may be offset by charges by the CDTFA prior to distribution, not to exceed $175,000 per the agreement. STRATEGIC PLAN: This aligns the City's long term fiscal strategic plan. RECOMMENDATION: That the City Council adopt: 1. Resolution 7591approving and authorizing the City Manager to execute agreements with the California Department of Tax and Fee Administration for Implementation of a Local Transactions and Use Tax to implement Measure GG’s increase to such tax; and, 2. Resolution 7592 authorizing Examination of Transactions and Use Tax records. Page 3 SUBMITTED BY: NOTED AND APPROVED: Barbara Arenado Patrick Gallegos Barbara Arenado, Director of Finance Patrick Gallegos, Interim City Manager ATTACHMENTS: A. Resolution 7591, including: Exhibit A, Agreement for Preparation to Administer and Operate City’s Transactions and Use Tax Ordinance Exhibit B, Agreement for State Administration of City’s Transactions and Use Taxes B. Resolution 7592 RESOLUTION 7591 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING CITY MANAGER TO EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX TO IMPLEMENT MEASURE GG’s INCREASE TO SUCH TAX WHEREAS, on November 6, 2018, the voters of the City of Seal Beach approved Ordinance 1671 amending the City Municipal Code and providing for a 1% local transaction and use tax; and, WHEREAS, on July 22, 2024, the City Council approved the placement of Ordinance 1714 on the November 5, 2024, ballot to amend the City Municipal Code and increasing by ½% the local transaction and use tax; and, WHEREAS, on November 5, 2024, the voters of the City of Seal Beach approved Ordinance 1714; and, WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and, WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and, WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said increased tax, and, Whereas, the Department requires that the City Council authorize the agreements. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the “Preparatory Agreement” attached as Exhibit “A” and the “Administrative Agreement” attached as Exhibit “B”. Section 2. The City Council directs the City Manager to execute each agreement on behalf of the City. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7591 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk RESOLUTION 7592 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS WHEREAS, pursuant to Ordinance 489, the City of Seal Beach (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and, WHEREAS, pursuant to Ordinance 1671 and 1714 Revenue and Taxation Code Section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and, WHEREAS, the City Council of the City of Seal Beach deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected by the Department for the City pursuant to that contract; and, WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: Section 1. That the City Manager and the Director of Finance/City Treasurer, or other officer or employee of the City designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department. Section 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City: (a) Compliance and enforcement of the sales or transactions and use taxes (b) Budget Planning (c) Economic Development The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above. Section 3. That Hinderliter, de Llamas & Associates (HdL) is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and HdL: a) has an existing contract with the City to examine those sales or transactions and use tax records; and, b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information; and, c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract; and, d) is prohibited by that contract from retaining the information contained in or derived from those sales or transactions and use tax records, after that contract has expired. BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in section 2 of this resolution. Section 4. That this resolution supersedes all prior resolutions of the City Council of the City of Seal Beach adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7592 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk (Rev. 07/24)1 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE CITY'S TRANSACTIONS AND USE TAX ORDINANCE In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of SEAL BEACH, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows: 1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City. 2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code. 3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final. 5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. (Rev. 07/24)2 6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) 7. Communications and notices may be sent by first class United States mail or through email at jservices@cdtfa.ca.gov. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at jservices@cdtfa.ca.gov or by mail. Communications and notices to be sent to the Department shall be addressed to: California Department of Tax and Fee Administration P.O. Box 942879 MIC: 27 Sacramento, California 94279-0027 Attention: Administrator Local Revenue Branch Communications and notices to be sent to City shall be addressed to: City Manager (with a copy to Director of Finance/City Treasurer) 211 8th Street Seal Beach, CA 90740-6379 8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement. CITY OF SEAL BEACH CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION By By (Signature) Administrator Local Revenue Branch Patrick Gallegos (Typed Name) Date: _______________________________ Interim City Manager (Title) Date: December 9, 2024 AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES The City Council of the City of SEAL BEACH has adopted, and the voters of the City of SEAL BEACH (hereafter called “City” or “District”) have approved by the required majority vote, the City of SEAL BEACH Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows: ARTICLE I DEFINITIONS Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following: 1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code. 2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Seal Beach Municipal Code Chapter 4.55, as most recently amended by Ordinance No. 1714, and as further amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2. ARTICLE II ADMINISTRATION AND COLLECTION OF CITY TAXES A.Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance. (Rev. 7/24)2 B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled. C.Transmittal of money. 1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter. 2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter. 3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement. D.Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder. E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. (Rev. 7/24)3 F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department. G. Records of the Department. When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement. H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary. ARTICLE III ALLOCATION OF TAX A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code: 1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion (Rev. 7/24)4 of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers. 2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies. B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use. ARTICLE IV COMPENSATION The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City. ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at jservices@cdtfa.ca.gov. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at jservices@cdtfa.ca.gov or by mail. (Rev. 7/24)5 Communications and notices to be sent to the Department shall be addressed to: California State Department of Tax and Fee Administration P.O. Box 942879 Sacramento, California 94279-0027 Attention: Administrator Local Revenue Branch Communications and notices to be sent to the City shall be addressed to: City Manager (with a copy to Director of Finance/City Treasurer) 211 8th Street Seal Beach, CA 90740-6379 Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above. B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2025. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance. C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. (Rev. 7/24)6 ARTICLE VI ADMINISTRATION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INVALID A. Impoundment of funds. 1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid. 2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable. B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that: 1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance. 2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement. 3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers. 4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing (Rev. 7/24)7 the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code. 5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City. 6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final. 7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds. CITY OF SEAL BEACH CALIFORNIA STATE DEPARTMENT OF TAX AND FEE ADMINISTRATION By By (Signature) Administrator Local Revenue Branch Patrick Gallegos (Typed Name) Date: _______________________________ Interim City Manager (Title) December 9, 2024 (Date) 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 7593 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk Agenda Item {{item.number}} AGENDA STAFF REPORT DATE: December 9, 2024 TO: Honorable Mayor and City Council THRU: Patrick Gallegos, Interim City Manager FROM: Barbara Arenado, Director of Finance/City Treasurer SUBJECT: Agreement for Measure “GG” Transactions Tax Audit & Information Services with Hinderliter, De Llamas and Associates ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7593: 1. Approving the Agreement for Measure “GG” Transaction Tax Audit & Information Services with Hinderliter, de Llamas and Associates dba HdL Companies (HdL); and, 2. Authorizing the City Manager to execute the Agreement. BACKGROUND AND ANALYSIS: The City of Seal Beach has been working with Hinderliter, de Llamas and Associates (HdL) since 1991. At that time the City and HdL entered into an agreement for HdL to provide sales tax audit and information services under the Bradley-Burns Uniform Local Sales and Use Tax Act. Subsequently, on November 6, 2018 the City’s voters approved the City’s 1% local transaction and use tax pursuant to Ordinance 1671 (commonly known as “Measure “BB”), as codified in Chapter 4.55 (Chapter 4.55) of Title 4 of the Seal Beach Municipal Code (SBMC). In 2019, the City and HdL entered into an agreement for HdL to provide transactions and use tax management services in order to assist the City in evaluating the accuracy of Measure “BB” revenues. Pursuant to these contracts, HdL helps the City to monitor payment of sales, transactions and use taxes collected by the State of California (State) and transmitted to the City by the California State Department of Tax and Fee Administration (CDTFA) to make sure the City is obtaining all appropriate general sales tax and Measure “BB” revenues. On November 5, 2024, Measure “GG” (as set forth in Ordinance 1714) was approved by the voters to amend Section 4.55.025 of Chapter 4.55, and thereby increasing by ½ % the City’s local transaction and use tax. The CDTFA will begin collecting the increase of ½ % tax on April 1, 2025. The State considers the Page 2 Measure “GG” Transactions Tax to be a separate data base from the sales taxes collected under the Bradley-Burns Uniform Local Sales and Use Tax Act and Measure “BB” 1% transactions tax, and therefore requires a separate resolution and agreement in connection with Measure “GG”. The City and HdL propose to combine the services already provided by HdL with respect to Measure “BB” revenues, and the additional services to be provided by HdL with respect to Measure “GG” revenues, into one professional services agreement, thereby amending the 2019 Agreement. Under the proposed Agreement, the revenues monitored from the 2018 Measure “BB” and the new revenues monitored from the 2024 Measure “GG” will hereinafter be collectively referred to as “Measure GG Services.” In accordance with the SBMC and State law, separate records will be kept by HdL and the City with respect to each ballot measure. No changes are being made to the 1991 Agreement relating to general sales tax. Unlike sales taxes where HdL waits for a quarter to see if the State finds any errors on their own, HdL will begin examining and correcting the Measure “GG” transactions tax allocations immediately. The sooner that that the audit begins, the sooner the paying agencies come into compliance. According to HdL, in March 2024, the CDTFA will send a letter to each taxpayer in the region informing them of the new requirement. CDTFA will also send out press releases to the media and include an article in their quarterly Tax Information Bulletin. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved the resolution and agreement as to form. FINANCIAL IMPACT: For the first year of the Agreement, term fees of $200 per month will be billed quarterly for the transaction district reports relating to the combined Measure “GG” Services that will be included in HdL’s quarterly sales tax analysis. Upon renewal for a second one-year term, the same $200 monthly fee paid quarterly will be billed to the City. Upon renewal for a third one-year term, the fee will increase to $300 per month, paid quarterly. For a fourth renewal term or any one-year renewal term thereafter, the $300 per month fee will increase based on the percent change in the Consumer Price Index and will also be paid quarterly. Additionally, for each one-year term, there is a flat fee of 25% for any recoveries of any Measure “GG” revenue misallocated or unremitted. There is sufficient funding available in the FY 2024-25 Adopted Budget to cover the cost of three months in the current fiscal year, and this item will be budgeted appropriately in future budget cycles. Page 3 STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7593: 1. Approving the Amended and Restated Master Professional Services Agreement for Measure “GG” Transaction Tax Audit & Information Services with Hinderliter, de Llamas and Associates dba HdL Companies (HdL); and, 2. Authorizing the City Manager to execute the Agreement. SUBMITTED BY: NOTED AND APPROVED: Barbara Arenado Patrick Gallegos Barbara Arenado, Director of Finance Patrick Gallegos, Interim City Manager ATTACHMENTS: A. Resolution 7593, including: Exhibit A, Amended and Restated Master Professional Services Agreement for Measure “GG” Transactions Tax Audit & Information Services B. Agreement for Sales Tax Audit and Information Services dated October 7, 1991 C. Ordinance 1714 D. Agreement for Transactions Tax Audit and Information Services dated April 1, 2019 (Measure “BB”) RESOLUTION 7593 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE AMENDED AND RESTATED MASTER PROFESSIONAL SERVICES AGREEMENT WITH HINDERLITER DE LLAMAS AND ASSOCIATES DBA HDL COMPANIES, FOR TRANSACTION TAX AUDIT & INFORMATION SERVICES WHEREAS, the City of Seal Beach (“City”) has relied upon professional services firms to provide technical expertise for certain City operations, including services relating to municipal finance, pursuant to the authority set forth in the Seal Beach City Charter and Seal Beach Municipal Code Section 3.20.025(C); and, WHEREAS, the City has been utilizing Hinderliter, de Llamas and Associates dba HdL Companies (“Consultant”), since 1991 to assist the City in monitoring, managing and auditing sales, transactions and use taxes allocated to the City pursuant to state law and local ordinance; and, WHEREAS, the City and Consultant are parties to an Agreement for Transactions Tax Audit and Information Services dated April 1, 2019 (hereinafter “2019 Agreement”) for Consultant to provide transactions and use tax management services to the City in connection with the 1% local transaction and use tax approved by the City’s voters on November 6, 2018, pursuant to Ordinance 1671 (Measure “BB”), as codified in Seal Beach Municipal Code (“SBMC”) Chapter 4.55; and, WHEREAS, on November 5, 2024, the City’s voters approved Ordinance 1714, commonly known as Measure “GG”, to increase by ½% the local transaction and use tax and to thereby amend SBMC Chapter 4.55; and, WHEREAS, the City and Consultant desire to update the 2019 Agreement for Consultant to provide transactions tax and economic analysis/forecasting services/reports and deficiency allocation reviews and recovery with respect to Ordinance No. 1714, along with the services previously approved by Measure “BB”, which such combined services shall be known collectively as “Measure GG Services”; and, WHEREAS, pursuant to the updated agreement, Consultant’s services will assist the City in carrying out continuous monitoring, identification and correction of allocation errors and reporting deficiencies to help maximize transactions and use tax revenues allocated to the City pursuant to pursuant to SBMC Chapter 4.55, as most recently amended by Ordinance No. 1714; and, WHEREAS, an effective review program can provide for more accurate budget forecasting and financial planning; and, WHEREAS, Consultant has the programs, equipment and personnel required to deliver the transactions and use tax related services referenced herein, to serve the needs of the City; and, WHEREAS, the City and Consultant wish to enter into the Amended and Restated Master Professional Services Agreement for Consultant (a) to provide the City with tax and economic analysis/forecasting services/reports and deficiency allocation reviews and recovery with respect to the Measure “GG” Services pursuant to SBMC Chapter 4.55 as originally approved pursuant to Ordinance 1671 (Measure “BB”) and as most recently amended by Ordinance 1714; (b) to set an initial term of one-year and provide for one-year renewals unless timely notice of non-renewal is provided by either party; (c) to modify the compensation for the combined transactions and use tax services for each one- year term; and (d) to supersede and replace the 2019 Agreement and any and all other prior agreements with HdL in connection with transactions and use taxes related to Measure “BB”. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the Amended and Restated Master Professional Services Agreement between the City of Seal Beach and Hinderliter, de Llamas and Associates dba HdL Companies for the performance of transaction tax audit and information services, as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference, relating to SBMC Chapter 4.55 as most recently amended by Ordinance 1714. Section 2. The City Council hereby sets an initial term of one year to commence April 1, 2025 and extend through March 31, 2026, with automatic renewal thereafter for additional one-year terms unless either party provides timely notice of non-renewal prior to the end of any one-year term. Section 3. The City Council modifies the compensation to provide that: (a) for the initial one-year term and for the second one-year term, the City will pay Consultant the not-to-exceed sum of $200 per month billed quarterly plus 25% of Measure “GG” revenue recovered through Consultant’s audit services, for each term; (b) for the third one-year term, the City will pay Consultant the not-to-exceed sum of $300 per month billed quarterly plus 25% of Measure “GG” revenue recovered through Consultant’s audit services; and (c) for the fourth one-year term and each one-year term thereafter, the City will pay Consultant the not-to-exceed sum of $300 per month billed quarterly as adjusted by Consumer Price Index for All Urban Consumers (CPI-U) for All items in Los Angeles-Long Beach- Anaheim, CA, not seasonally adjusted, as reported by the U.S. Bureau of Labor Statistics, plus 25% of Measure “GG” revenue recovered through Consultant’s audit services. Section 4. The Amended and Restated Master Professional Services Agreement hereby supersedes and replaces in their entirety the 2019 Agreement and any and all other prior agreements with Consultant related to transactions and use tax services in connection with Measure “BB”. Section 5. The City Manager is authorized to execute the Amended and Restated Master Professional Services Agreement on behalf of the City. Section 6. The City Clerk shall certify to the passage and adoption of this resolution. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7593 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk AMENDED AND RESTATED PROFESSIONAL SERVICES AGREEMENT for Tax Audit & Information Services between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 & Hinderliter De Llamas and Associates dba HDL Companies 120 S. State College Blvd. Suite #200 Brea CA 92821 (714) 879-5000 THIS AMENDED AND RESTATED MASTER PROFESSIONAL SERVICES AGREEMENT (the Agreement made as of December 9, 2024, Effective Date between Hinderliter De Llamas and Associates, a California corporation, dba HDL Companies Consultant the collectively the Parties Party ). Page 2 of 24 RECITALS WHEREAS, Consultant is engaged in the business of providing consulting, software and other services that help public agencies understand and maximize their collection of sales, use and transactions taxes, business license taxes, property and lodging taxes, and other revenues, as well as their delivery of ; and, WHEREAS, City and Consultant are parties to an Agreement for Transactions Tax Audit and 2019 Agreement transactions and use tax management services to City in connection with the 1% local transaction and ovember 6, 2018, pursuant to Ordinance 1671 (Measure SBMC WHEREAS al transaction and use tax and to thereby amend SBMC Chapter 4.55; and WHEREAS, City and Consultant desire to update the 2019 Agreement for Consultant to also provide transactions tax and economic analysis/forecasting services/reports and deficiency allocation reviews and recovery with respect to Ordinance No. 1714, in addition to the services previously Measure GG Services ; and, WHEREAS, Consultant represents that it is fully qualified and able to provide City with such combined professional services by virtue of the training, education and expertise of its principals and employees; and WHEREAS, City desires to retain Consultant as an independent contractor and Consultant desires to contract with City to render such ervices upon the terms and conditions contained in this Agreement. NOW THEREFORE, in consideration of the covenants and promises contained herein, City and Consultant mutually agree as follows: 1. Services. 1.1 Consultant will perform those services included within are described in supplemented by any and all schedule(s) referencing this Agreement and signed by City and Consultant as of the Effective Date or hereafter (individually and (s), upon the terms and conditions contained in this Agreement (including the Schedules) (such services are, c . 1.2 As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the Services to be provided. In light of such status and experience, Consultant hereby covenants that it shall follow the customary professional standards in performing all Services. City relies upon the skill of Consultant, and Page 3 of 24 manner Consultant shall, at all times, meet or exceed any and all applicable professional standards of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City. City shall not operate as a release of Consultant from such standard of care and workmanship. 1.3 In performing the Services, Consultant shall comply with all applicable provisions of federal, state, City ordinances, and other local laws. 1.4 City acknowledges and agrees that any other public agency (including, without limitation, any participating government agency) located within or outside of the State (e.g., city, municipality, county, district, public authority or other political subdivision) may procure services for fees and other terms and conditions that are substantially similar to any of the Services, Fees and other terms and conditions set forth in this Agreement, provided that such other public agency executes a separate agreement with Consultant wherein the services rendered to such other public agency, the fees payable by such other public agency, and the other terms and conditions of such separate agreement are the responsibility of Consultant and such other public agency and not City. 1.5 This Agreement does not limit the right of Consultant to enter into additional contracts with City or to contract with third parties to provide them with merchandise or services of any kind whatsoever, including, but not limited to, services similar to the Services. This Agreement also does not limit the right of City to enter into additional contracts with third parties to provide the City with any kind of services, including, but not limited to, services similar to the Services set forth in this Agreement. City 1.6 In performing the Services, Consultant is an independent contractor and not an employee of City. The following provisions shall apply: 1.6.1 All work or other Services provided pursuant to this Agreement shall be City-approved Consultant will determine the means, methods, and detail perform the Services. Consultant shall be solely responsible for the satisfactory work performance of all Consultant directors, officers, employees and subcontractors engaged in performing the Services and their compliance with the customary professional standards. 1.6.2 performing any of the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. officers, employees and/or approved subcontractors. Consul and/or approved subcontractors shall not wear or display any City uniform, badge, identification directors, officers, employees and/or approved subcontractors shall not use any City e-mail address or City telephone number in the performance of any of the Services under this Agreement. Consultant shall acquire and maintain at its sole cost and expense such vehicles, equipment and supplies as required by Consultant to perform any of the Services in the performance of this Agreement. Page 4 of 24 (a) as otherwise required for the performance of Services on City real property, facilities, vehicles or equipment; (b officers, employees and/or approved subcontractors to receive projects from City, review plans on under this Agreement, or (c) as may be necessary to inspect or visit City locations and/or private property to perform such Services. City may make a computer available to Consultant from time to information pertaining to the Services under this Agreement. 1.6.3 In addition to all other provisions of this Agreement, Consultant shall be responsible for and pay all compensation, wages, salaries, benefits and other amounts due to performance of any Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such directors, officers, employees and/or approved subcontractors, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, State, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and its directors, officers, employees, agents, servants, and subcontractors providing any of the Services under this Agreement shall not become entitled to, and hereby waive any claims to, any compensation, 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 or employer contributions or employee contributions for PERS benefits. 1.6.4 Consultant shall defend, indemnify and hold harmless City. its elected and appointed officials, officers, employees, agents, servants, volunteers, and those City agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, personnel practices. or to the extent arising from, caused by or relating to the violation of any of the provisions of this Section 1.6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount reimbursement or indemnification arising under this Section. indemnification are i and indemnification set forth in any other provision of this Agreement. 1.7 The Parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Consultant agrees as follows: 1.7.1 In providing its directors, officers, employees and subcontractors to City to perform any work or other Services under this Agreement, Consultant shall assure compliance with ), commencing at Government Code § 20000, as PERS, as amended from time to time. Without limitation to the foregoing, Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those Page 5 of 24 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 PERL, PEPRA or any other applicable retirement laws and regulations. 1.7.2 To the maximum extent permitted by law, Consultant shall defend, indemnify and hold harmless City, its elected and appointed officials, officers, employees, agents, servants, volunteers, and those City 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, of this Section 1.7. This duty of indemnification is set forth in any other provision of this Agreement. 2. Fees. 2.1 As compensation for performing the Services, City will pay Consultant the fees, costs and expenses as described in Exhibit A (), attached hereto and incorporated herein by this reference, and as may be set forth in the Schedules (individually and collectively these fees and costs are, . Consultant may perform the Services using professionals from its staff; or, subject to all terms and conditions of this Agreement, Consultant may perform the Services using professionals from Consultant affiliated entities, if such subcontracting is approved in advance by City, and any such subcontracted Services will be invoiced to City under the same terms applicable to staff. Consultant may increase the Fees for Transactions Tax and Economic Analysis/Forecasting Services/Reports only in accordance with Section 4 of Exhibit A. Fees for Allocation and Audit Recovery Services, as set forth in Section 5 of Exhibit A, shall not be increased by Consultant during any Term of this Agreement. Consultant may raise other fees from time to time (including as may be described in any of the Schedules, but subject to the limitations of this Section 2.1). Other than a Fee increase as described in the Schedules, City may notify Consultant of a request that such Fee increase be modified or revoked and, if Consultant fails to do so to City satisfaction within thirty (30) days after the receipt of such request, City may terminate this Agreement without cause pursuant to Section 7.3, without penalty. 2.2 Fee payments to be made to Consultant by City for any Services performed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year 7.5. 3. Billing: Payment. 3.1 Consultant will bill City for the Fees earned and/or incurred by Consultant pursuant to this Agreement by submittal of invoices sent to City. 3.2 Invoices are due and payable upon receipt. Interest will begin to accrue on the thirty- first (31st) day following the invoice on all unpaid balances at a rate of one and one-half percent (1½%) per month, or the maximum rate permitted by law, whichever is less. Payments will first be credited to interest and then to principal. In the event that City disputes or Page 6 of 24 otherwise contests an invoice, only that portion so contested in good faith will be withheld from payment, and the uncontested portion must be timely paid. Interest will accrue on any contested portion of the invoice not timely paid and will be payable immediately if the contested invoice is resolved in favor of Consultant. 3.3 If City fails to fully pay an invoice within thirty (30) days after the the invoice, Consultant may, after giving five (5) days prior written notice to City, suspend the rendering of Services under this Agreement until said invoice is paid in full, together with all interest that has accrued thereon. In the event of such a suspension of Services, Consultant will have no liability to City for any delays or damages arising therefrom. 4. Insurance. Throughout the term of this Agreement, Consultant will maintain the following insurance in not less than the referenced amounts and containing the following provisions: 4.1 Minimum Scope and Limits of Insurance: Consultant shall, at its sole cost and expense, procure, maintain and keep in full force and effect 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, as follows: 4.1.1 Commercial General Liability Insurance: Consultant shall maintain limits no less than $1,000,000 per occurrence for bodily injury, death, 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. Coverage shall be at least as broad as the latest version of Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents, servants, and other persons necessary or incidental to its operation are insureds. 4.1.2 Automobile Liability Insurance: Consultant shall maintain limits no less than $1,000,000 per accident for bodily injury and property damage. Coverage shall be at least as broad as Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto). 4.1.3 : Consultant shall maintain limits no less than the amount required by law; $1,000,000 per accident and in the aggregate for bodily injury or disease. 4.1.4 Professional Liability (or Errors and Omissions) Liability Insurance: Consultant shall maintain professional liability (or errors and omissions liability) insurance that covers the Services to be performed in connection with this Agreement, with minimum limits of $1,000,000 per claim/aggregate. Any policy inception date, continuity date, or retroactive date must be before the Effective Date of this Agreement. shall be endorsed to provide an extended reporting period of not less than three years. 4.1.5 Cyber Security & Privacy Liability Insurance: Consultant shall procure and maintain Cyber Security and Privacy Liability insurance with limits of $1,000,000 per occurrence and $2,000,000 general aggregate which shall include the following coverage: Page 7 of 24 (a) Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination, or use of confidential information. (b) Network security liability arising from the unauthorized use of, access to, or tampering with computer systems, including hacker or denial of service attacks. (c) Liability arising from the failure of technology products (software) required under the contract for Service Provider to properly perform the services intended. (d) Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. 4.2 The Insurance policies required under this Section shall 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 City. 4.3 Additional Insureds: 4.3.1 For general liability insurance, City, its elected and appointed officials, officers, employees, agents, servants, volunteers, and those City agents serving as independent contractors in the role of City officials 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. 4.3.2 For automobile liability insurance, City, its elected and appointed officials, officers, employees, agents, servants, volunteers and those City agents serving as independent contractors in the role of City officials, 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. 4.3.3 These additional insured provisions shall also apply to any excess/umbrella liability policies. 4.4 The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by City to state: (i) coverage shall not be suspended, voided, reduced or canceled except after 30 days (or ten days for nonpayment) prior written notice by certified mail, return receipt requested, has been given to City; and (ii) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to City, its elected and appointed officials, officers, employees, agents, servants, volunteers, and those City agents serving as independent contractors in the role of City officials; 4.5 Coverage shall be primary insurance as respects City, its elected and appointed officials, officers, employees, agents, servants, volunteers, and those City agents serving as independent contractors in the role of City officials, 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- Page 8 of 24 insurance maintained by City, its elected and appointed officials, officers, employees, agents, servants, volunteers and those City agents serving as independent contractors in the role of City officials, shall be excess of the Consultant's insurance and shall not be called upon to contribute with it; 4.6 Each insurance policy shall contain standard separation of insureds provisions and shall not contain any special limitations on the scope of protection afforded to City, its elected and appointed officials, officers, employees, agents, servants, volunteers and those City agents serving as independent contractors in the role of City officials. 4.7. Any deductibles or self-insured retentions shall be declared to and approved by City. Consultant guarantees that, at the option of City, either: (i) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected and appointed officials, officers, employees, agents, servants, volunteers and those City agents serving as independent contractors in the role of City officials; or (ii) Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 4.8 Each insurance policy required right of subrogation against City, its elected and appointed officials, officers, employees, agents, servants, volunteers and those City agents serving as independent contractors in the role of City officials. Consultant hereby waives its own right of recovery and all rights of subrogation against City; and shall require similar express written waivers from any subcontractor. 4.8 Consultant acknowledges and agrees that any actual or alleged failure on to inform Consultant of non-compliance with any insurance requirement does not impose additional obligations on City, nor does it waive any rights hereunder. 4.10 If Consultant does not maintain the policies of insurance required under this Section do not comply with the requirements under this Section, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant. 4.11 Prior to the performance of Services under this Agreement, Consultant shall furnish City with original certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section on forms satisfactory to and approved by 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 City if requested. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain All certificates and endorsements shall be received and approved by City before work commences. City also reserves the right to require complete, certified copies of all required insurance policies, at any time. Consultant shall also provide proof to City that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two weeks prior to the expiration of the coverages. Page 9 of 24 4.12 Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 4.13. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of Consultant under this Agreement. Consultant may also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. If Consultant maintains broader coverage and/or higher limits than the minimums required above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Consultant. 4.14 Consultant shall require each of its subcontractors that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of this Section except Consultant agrees to monitor and review all such coverages and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. Consultant agrees to submit all agreements with consultants, subcontractors, and others engaged in the Services upon 4.15 Contractor shall give City prompt and timely notice of demands or claims made or that involve or may involve coverage under any of the required insurance policies. 5. City Support. 5.1 City will promptly provide in writing to Consultant all data and other information reasonably available to City relating to or which may be necessary for Consultant the Services. Without limiting the foregoing, City will keep Consultant informed on a timely basis in writing as to the existence and amendments of the City ordinances and/or regulations under which Consultant is performing the Services. Consultant will be permitted to rely on the accuracy, timeliness and completeness of the information provided by City, and in no event will Consultant be liable to City or others as a result of such reliance. Notwithstanding the foregoing, Consultant shall be responsible to inform itself of and comply with any and all state and federal laws under which Consultant is performing the Services (including any adopted by City). 5.2 City will examine all of Consultant schedules, reports, specifications, notices, proposals and other routinely requested information or other documents. In the event that a decision from City is required in order for Consultant to perform the Services, City will render such decision in writing in a timely manner. 5.3 commencement of any Services under this Agreement, City will adopt and maintain in full force and effect a resolution in a form acceptable to the California Department of Tax and Fee Administration (CDTFA) and in accordance with applicable law authorizing Consultant to examine the confidential sales tax and other relevant records of City throughout the Term and, for so long as any Fees are still accruing pursuant to this Agreement, after the Term. Page 10 of 24 5.4 Consultant shall be responsible for obtaining and maintaining all licenses, permits and approvals as may be required by law for performing the Services at their sole cost, including but not limited to a City of Seal Beach business license.. 6. Confidentiality; Software Use and Warranty; Records. 6.1 Consultant will comply with the requirements of the applicable laws, ordinances and/or regulations City concerning the confidentiality of tax records. Consultant may publicly state that it performs Services for City. 6.2 , techniques, processes, services or material that has or could have commercial value or other utility for Consultant or Business, including without limitation, (i) software, computer or data processing programs; (ii) data processing applications, routines, subroutines, techniques or systems; (iii) desktop or web-based software; (iv) audit, tax or fee collection/administration or business processes, methods or routines; (v) marketing plans, analyses and strategies; (vi) materials, techniques and intellectual property used documentation. include any processes, methods or routines required by CDTFA, City ordinance or regulation, and/or any other federal, state or local law required to be used in the performance of the Services. Except as otherwise required by law, including but not limited to any disclosures required by the California Public Records Act, the federal Freedom of Information Act, subpoena or court order, City must hold in confidence and may not use (except as expressly authorized by this Agreement) or disclose to any other party any proprietary information provided, learned of or obtained by City in connection with this Agreement. The terms of this Section 6.2 do not apply to information that is public information. 6.3 If access to any software which Consultant owns is provided to City as part of the Services under this Agreement (including, without limitation, if City chooses to subscribe to such software and/or related reports option as part of the Services ) (such Consultant-Software non-exclusive, non-transferable license to City (for the use by those members of City be designated from time to time by City and approved by Consultant in writing) to use the Software pursuant to and during the Term of this Agreement. 6.4 The Software must only be used by such authorized City staff, and City must not sublicense, sublet, duplicate, modify, decompile, reverse engineer, disassemble, or attempt to derive the source code of the Software. The license granted hereunder does not imply ownership by City or any of City City or any of City or sell the Software, or rights to use the Software for the benefit of others. City may not create (or allow the creation of) any derivative work or product based on or derived from the Software, nor modify (or allow the modification of) the Software without the prior written consent of Consultant. In the event of a breach of this pro modification, derivative work or product based on the Software is hereby deemed assigned to Consultant. Upon termination of this Agreement or this Software license, this Software license will be deemed to have expired, and City must immediately deactivate, cease using and remove, delete and destroy all the Software (including, without limitation, from City Consultant warrants that the Software will perform in accordance wi documentation. Page 11 of 24 6.5 Notwithstanding anything to the contrary in this Agreement (including any Schedule hereto), if access to any software which Consultant does not own is provided to City as part of the Services pursuant to this Agreement (including pursuant to any Schedule hereto), Consultant prior to or concurrently with providing City with such software; and City hereby agrees (i) to comply with all of the terms and conditions imposed on City limitation, by Consultant, , and pursuant to applicable law), and (ii) Consultant has no obligation during the Term of this Agreement or thereafter to provide City with access to such software. 6.6 All documents, preliminary drafts, communications and any and all other work product related to the Services and provided by Consultant to City either in hard copy or electronically are the property of City . City property does not include the Software or any other software, any programs, any methodologies or any systems used in the creation of such work product (except to the extent such methodologies are established and/or required by any City ordinance or regulation), nor does City property include any drafts, notes or internal communications prepared by Consultant in the course of performing the Services that were not otherwise provided to City in either hardcopy or electronic form, all of which may be protected by Consultant or third party copyrights or other intellectual property exclusive property (as the case may be). It is possible that any documents, drafts, communications or other work product provided to City may be alleged to be public records under applicable law and/or may be discoverable through litigation. 6.7 Subject to applicable law, Consultant shall retain all final documents and other final work product related to the Services for a period that is the latest of any of the following: (i) not less than three (3) years from the date such final documents and other final work product are provided to City; or (ii) not less than three (3) years after termination of this Agreement; or (iii) not less than such period of time longer than either such three-year period as required by applicable federal or state law. Retention of any other documents, preliminary drafts, communications and any and all other work product provided to City by Consultant is the responsibility of City. Consultant has no responsibility to retain any drafts, notes, communications, emails or other writings created or received by City in the course of performing the Services (other than the final documents and other final work product related to the Services and provided to City for the term of years referenced above). 7. Term and Termination. 7.1 The initial term of this Agreement commences as of April 1, 2025, and will continue in effect until twelve (12) months from such date to and including March 31, 2026 (the ), unless sooner terminated earlier as provided in this Agreement. This Agreement will automatically renew for successive twelve (12) month terms unless earlier terminated as set forth in Section 7.2, 7.3, 7.4, or 7.5, or either party gives the other party written notice of non-renewal at least one hundred twenty (120) days prior to the expiration of the then-current term ( and, collectively, together with the Initial Term, the ). 7.2 Notwithstanding any other provision of this Agreement, this Agreement may be terminated by either party for cause upon not less than forty-five (45) days prior written notice given to and received by the other party, if the other party has materially breached this Agreement and fails Page 12 of 24 to (i) commence correction of such material breach within thirty (30) days of receipt of the above- referenced written notice and (ii) diligently complete the correction thereafter. 7.3 In addition, and notwithstanding any other provision of this Agreement, City may if Consultant fails to provide satisfactory evidence of renewal or replacement of comprehensive general liability insurance or cyber security & privacy liability insurance as required by this Agreement at least twenty (20) days before the expiration date of the previous policy. 7.4 In addition, and notwithstanding any other provision of this Agreement, either party may terminate this Agreement without cause, upon not less than one hundred twenty (12 prior written notice to the other party. 7.5 In addition, and notwithstanding any provision of this Agreement, Consultant understands and agrees that City is a California public entity and is subject to the California Constitutional Debt Limit restriction. During any fiscal year during the Initial Term or any Renewal Term, should City City Council fail to appropriate sufficient funding for this Agreement for the following fiscal year, then City may terminate this Agreement without penalty or payment acceleration of any kind by providing Consultant with not less notice of termination. 7.6 On termination as provided herein, City will pay Consultant for the value of all Services performed through the termination date less payments previously paid by City, to which Consultant may be entitled pursuant to this Agreement (including any applicable Schedules hereto). In ascertaining the value of the Services performed up to the date of termination, consideration shall be given to amounts due for any unpaid invoices, and to businesses identified by Consultant which City receives said tax payments for such businesses, Consultant shall be paid the audit fees resulting from tax payments made by the business for back quarter reallocations. Compensation for any audit work previously authorized and satisfactorily performed shall be made at the times provided in Section 2, the Fees sections of Exhibit A, and/or any applicable Schedule. 8. Indemnification. 8.1 Indemnification by City. City shall, at its sole cost and expense, protect, defend, hold harmless and indemnify Consultant, its directors, officers, and employees the damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, bid protests, stop notices, liens or losses of any nature whatsoever, including but not limited to fees of accountants, attorneys and other Liabilities to the extent arising out of, caused by or relating to any of the following: (i Title 4 of the Seal Beach Municipal Code, or any provision thereof, or to any other City ordinance, regulation, policy or practice; (ii) any violation of Chapter 5.44, or any other City ordinance, regulation policy, or practice, by City or any of its officials, employees, agents and/or independent contractors; (iii) any acts or failure to act with due care by City and/or any of its officials, employees, agents and/or independent contractors in reliance upon or pursuant to Chapter 5.44 or any other City ordinance, regulation, policy or practice; (iv) any acts or failure to act by Consultant, or any of its directors, officers, or employees in reasonable reliance upon any directions or instructions by City or Page 13 of 24 officials, employees, agents, or independent contractors; or (v) to the extent arising out of, in connection with or relating to the sole active or passive negligence, recklessness or willful misconduct of City or any of its officers, officials, employees, agents, or independent contractors. Notwithstanding the foregoing or any other provision of this Agreement, in no event shall City have the obligation to defend or indemnify the Consultant Group or any member thereof for any of the following: 8.1.1 Lost revenues or lost profits, or any special, incidental, or consequential damages of any nature whatsoever, even if such restrictions deprive one or more remedies of their essential purpose; and 8.1.2 Punitive or exemplary damages claimed or awarded against the Consultant Group or any member thereof. 8.1.3 These damage exclusions are independent of any remedies provided for in this Agreement or as otherwise authorized by law. 8.2 Indemnification by Consultant. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, defend, hold harmless and indemnify City, its elected and appointed officials, officers, attorneys, employees, agents, servants, volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively causes of action, proceedings, judgments, penalties, bid protests, stop notices, liens or losses of any nature whatsoever, including but not limited to fees of accountants, attorneys and other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively but not limited to, bodily injury, death, personal injury and property damage, in any manner arising out of, claimed to arise out of, pertaining to, or relating to the breach of this Agreement or any provision or term of this Agreement, and/or any acts, errors, omissions, negligence or willful misconduct of Consultant, its officers, directors, agents, servants, employees, contractors, subcontractors, materialmen, or suppliers, or their officers, agents, servants or employees (or any entity or individual for whom Consultant shall bear legal liability) in the performance of the Services and/or this Agreement, except to the extent the Claims arise from the sole negligence or willful misconduct of the City Group as determined by final arbitration or court decision or by the agreement of the Parties. Consultant shall defend the City Group in any action or actions filed in connection with any Claims with counsel reasonably acceptable to the choice, and shall pay all with such defense. Consultant shall reimburse the City Group for any and all legal expenses and costs incurred by the City Group in connection therewith. Notwithstanding the foregoing or any other provision of this Agreement, in no event shall Consultant have the obligation to defend or indemnify the City Group or any member thereof for any of the following: 8.2.1 Lost revenues or lost profits, or any special, incidental, or consequential damages of any nature whatsoever, even if such restrictions deprive one or more remedies of their essential purpose; and Page 14 of 24 8.2.2 Punitive or exemplary damages claimed or awarded against the City Group or any member thereof. 8.3 8.1.3 These damage exclusions are independent of any remedies provided for in this Agreement or as otherwise authorized by law. 8.4 Subcontractor Indemnification. s subcontracting of any of the Services under this Agreement, Consultant shall obtain executed indemnity agreements with provisions identical to those in Section 8.2 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnity agreements, Consultant shall be fully responsible and indemnify, hold harmless and defend the City Group from and against any and all Claims in law or equity, whether actual, alleged or threatened, arising out of, are claimed to arise out of, pertaining to, or relating to, the breach of this Agreement, any acts, errors, omissions, negligence or willful or other person or entity, and its officers, agents, servants, employees, materialmen, contractors, and/or subcontractors, or their officers, agents, servants or and/or such other person or individual shall bear legal liability) in the performance of the Services or this Agreement, except to the extent the Claims arise from the sole negligence or willful misconduct of the City Group as determined by final arbitration or court decision or by the agreement of the Parties. 8.5 Settlement Approval. 8.4.1 City or consent to the entry of any judgment in any pending or threatened claim, action, or proceeding or investigation in respect of which indemnification could be sought hereunder (whether or not any of the Consultant Group is an actual or potential party to such claim, action or proceeding or investigation), unless such settlement, compromise or consent includes an unconditional release of Consultant. 8.4.2 Consultant will not, without City prior written consent, settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action, or proceeding or investigation in respect of which indemnification could be sought hereunder. Notwithstanding any other p payment of any City funds of any kind as part of any settlement, compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, or proceeding or investigation in respect of which indemnification could be sought hereunder. 8.6 provision of this Agreement, shall not be limited by the provisions of any or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its elected and appointed officers, officials, agents, employees, designated volunteers and those City agents serving as independent contractors in the role of City officials. 8.7 City does not, and shall not, waive any rights that it 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 Agreement. The indemnities and obligations owed by Consultant Page 15 of 24 in this Section shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liabilities asserted against City or any of the other City Group. 9. Liability Limitations; Governing Law; Dispute Resolution. 9.1 Subject to Sections 1.6, 1.7, 4 and 8 of this Agreement: 9.1.1 Except as may otherwise be expressly set forth in this Agreement, Consultant makes no warranty of any kind with respect to the Services or the Software, express or implied. Consultant hereby disclaims all other warranties, express or implied, including the implied warranties of merchantability, fitness for a particular purpose, title and non infringement. Consultant disclaims all warranties and responsibility for third party software. 9.1.2 Consultant acknowledges industry recognition in data security standards, and shall comply with (a) NIST SP800-53 for data at rest, in transit, and/or in use; and (b) NIST SP800- 88; (c) or any successor standard thereto. Any and all cloud-based storage shall be conducted in the continental United States and compliant with or exceeding the security standards set forth in ISO/IEC 27001 -27018. Use of Amazon Web Services or Microsoft Azure cloud storage shall be deemed to satisfy this requirement. 9.2 The law of the State will govern the validity of this Agreement, its interpretation rules. Venue for any legal action arising out of this Agreement will be proper only in the State courts or the federal courts located within the County of Orange, California. The parties hereby submit to the exclusive jurisdiction of such courts and waive any other venue to which either party might be entitled by domicile or otherwise. 9.3 If either party commences an action against the other party, either legal, administrative, or otherwise, to enforce its rights under this Agreement or as the result of a breach of this Agreement by the other party, the prevailing party in such litigation shall be entitled to have and recover from the non-prevailing party a costs and expenses incurred in connection therewith. 10. General Legal Provisions. 10.1 Authorization to Proceed. Each Schedule must be signed by both City and Consultant before such Schedule will be binding on the parties hereto. 10.2 Prohibited Interests; Conflict of Interest. 10.2.1 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 Page 16 of 24 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. 10.2.2 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. 10.2.3 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 Section. 10.3 Audit and Inspection of Records. Consultant shall maintain complete and accurate records with respect to all Services and other matters covered under this Agreement, including but expressly not limited to, all Services performed, time cards, cost control sheets, costs, expenses, receipts and other records with respect to this Agreement. Consultant shall maintain adequate records on the Services provided in sufficient detail to permit an evaluation of all Services in connection therewith. All such records shall be clearly identified and readily accessible. At all times during regular business hours, Consultant shall provide City with free access to such records, and the right to examine and audit the same and to make copies and transcripts as City deems necessary, and shall allow inspection of all data, information, documents, proceedings and activities and all other matters related to the performance of the Services under this Agreement. Consultant shall retain all financial and other records related to the Services and performance of this Agreement for at least three (3) years after expiration, termination or final payment under this Agreement, whichever occurs later. 10.4 Force Majeure. Neither party shall be responsible for damages or delay in performance caused by acts of God, acts of the public enemy, fires, floods, earthquakes or other casualty event, strikes, labor stoppages or slowdowns, accidents, epidemics, pandemics or other health emergencies, or other events beyond the reasonable control of such party. Each party shall advise the other party promptly in writing in accordance with Section 10.13 (Notice) of this Agreement of each such excusable delay, its cause, and its expected delay, and shall upon request update such advice and information. 10.5 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 -insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. Page 17 of 24 10.6 Non-Discrimination and Equal Employment Opportunity. Consultant affirmatively represents that it is an equal opportunity employer. In the performance of this Agreement, Consultant covenants that it shall not discriminate, harass or retaliate against any of its employees, applicants for employment, contractors, or subcontractors because or on account of race, religion, color, national origin, handicap, ancestry, sex, gender, sexual orientation, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, military or veteran status, or any other basis prohibited by law. Consultant further covenants that in the performance of this Agreement, Consultant shall not discriminate, harass or retaliate against City, its elected or appointed officials, officers, employees, agents, servants, volunteers, those City agents serving as independent contractors in the role of City officials, consultants, contractors, or subcontractors on any basis prohibited by law. 10.7 Amendment. Any provisions of this Agreement (including, without limitation, any Schedules or provisions within any Schedules) may be amended or terminated only by a written instrument signed by both City and Consultant. 10.8 Waiver. No waiver by any party of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, will be deemed to be valid unless acknowledged by such party in writing, and such waiver will not extend to any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. 10.9 Severability. If any provision in this Agreement is held illegal, invalid or unenforceable, the enforceability of the remaining provisions will not be impaired thereby. 10.10 Survival. Notwithstanding any other provisions of this Agreement (including, without limitation, Section 7), Sections 1.6, 1.7, 3, 4, 5.5, 6, 7, 8, 9 and 10 will survive the termination of this Agreement. 10.11 No Third-Party Beneficiaries. This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity shall be deemed to have any rights hereunder against either party by virtue of this Agreement. 10.12 Assignment. Consultant shall not assign this Agreement, or any of its rights, obligations or interest in this Agreement, in whole or in part, without the prior written consent of City, which may be withheld for any reason. Any unauthorized assignment is void and unenforceable, and shall entitle City to terminate this Agreement. This Agreement is binding on the successors and assigns of the parties hereto. Notwithstanding anything to the contrary, Consultant may, from time to time, subcontract with one or more third parties to provide certain of the Services (including, but not limited to, as may be set forth in one or more of the Schedules), subject to (i) consent; (ii) the Conflict of Interest/Prohibited Interests provisions of Section 10.2; and (iii) such third written agreement to comply with all terms and provisions of this Agreement. Any approved subcontractor shall be subject to all Fee limitations set forth in this Agreement, Exhibit A and any applicable Schedule. 10.13 Notices. All notices under this Agreement must be in writing and will be deemed to have been given when such notice is received (i) from United States Postal Service First Class Certified Mail, Return Receipt Requested, (ii) by courier service, or (iii) by email; provided, however, Page 18 of 24 that notices received on a weekend or holiday or on a business day after 4:00 p.m. local time will be deemed to have been received on the next business day. Notices will, unless another address is specified in writing, be sent to the addresses indicated below (each of which must include a street address and an email address): Consultant: HdL Companies Attn: Maria Soto-Sanchez, 120 S. State College Boulevard, Suite #200, Brea, CA 91821; and City: City of Seal Beach, Attn: Director of Finance. 211 Eighth Street, Seal Beach, CA 90740. 10.14 Agreement Documents. The Agreement Documents include this Agreement, and any completed Transaction Tax Audit Work Authorization Form in the form set forth in Exhibit B, and mutually agreed to in writing by City and Consultant; (iii) any Schedules attached hereto or subsequently mutually agreed upon in writing between City and Consultant; and (iv) any amendments to this Agreement as mutually agreed upon in writing between City and Consultant. Exhibit A, Exhibit B, all attached Schedules, any mutually agreed-upon Schedules hereafter executed between the Parties, and any mutually-agreed upon Work Authorization Forms are incorporated herein by this reference as through set forth in full. 10.15 Order of Precedence. In the event of any inconsistency of conflict between this Agreement and any of the other Agreement Documents as defined in Section 10.13, the order of precedence shall be as follows: (i) this Agreement; and then (ii) Exhibit A; and then (iii) any completed Work Authorization Form consistent with Exhibit B that are mutually executed in writing by City and Consultant; and then (iv) any Schedule mutually agreed upon in writing by City and Consultant, shall control. In the event there is any inconsistency or conflict between the Agreement, on the one hand, and Exhibit A, any completed Work Authorization Form consistent with Exhibit B and mutually executed in writing by City and Consultant, and/or any Schedule mutually agreed upon in writing by City and Consultant, on the other hand, the provisions of this Agreement shall take precedence. 10.16 Entire Agreement. This Agreement and the other Agreement Documents as described in Section 10.13, constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes the Agreement for Transactions Tax Audit and Information Services dated April 1, 2019 and also supersedes any and all other prior understandings, agreements, or representations by or between the Parties, written or oral, to the extent they relate in any way to the subject matter hereof. 10.17 Counterparts; Electronic Signatures. This Agreement may be signed in any number of counterparts, each of which will constitute an original and all of which, when taken together, will constitute one agreement. Any signed signature pages of this Agreement transmitted by email or other electronic means in a portable document format (PDF) or other clear and visible electronic format will have the same legal effect as an original. 10.18 Authority to Sign. Each of the persons signing on behalf of a party hereto represents that he or she has the authority , and that by his or her execution, each party is formally bound to the provisions of this Agreement. 10.19 No Adverse Construction. Both parties acknowledge having had the opportunity to participate in the drafting of this Agreement. This Agreement will not be construed against either party based upon authorship. Page 19 of 24 10.20 Headings. The section headings contained in this Agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this Agreement. [Signatures are on the next page] Page 20 of 24 IN WITNESS WHEREOF, the parties hereto have entered into this Agreement through their duly authorized representatives as of the Effective Date. CONSULTANT: Hinderliter de Llamas and Associates, a California corporation By: Print Name: Title: By: Print Name: Title: CITY: City of Seal Beach, a charter city By: City Manager [Any Schedule or Schedules may (but is/are not required to) be attached hereto] Page 21 of 24 EXHIBIT A SERVICES Definitions: As used in this Exhibit A, the following terms shall have the following meanings: A. means and includes all of the following: 1) Transactions and use tax management services provided in connection with the 1% local O codified as the City of Seal Beach Transactions and Use Tax Ordinance of 2018 in Chapter 4.55 of Title 4 of the Seal Beach Municipal Code ; and 2) Transactions tax and economic analysis/forecasting services/reports and deficiency allocation reviews and recovery services provided in connection with the ½% increase in the local transaction and use tax, as November 5, 2024, pursuant to Ordinance No. 1714, amending Section 4.05.35 of Chapter 4.55 of Title 4 of the SBMC. B. CDTFA means the California Department of Tax and Fee Administration. C. City or District means the City of Seal Beach. D. Consultant means Hinderliter De Llamas and Associates, a California corporation, dba HDL Companies. 1. Transactions Tax and Economic Analysis/Forecasting Services/Reports 1.1. Consultant shall establish a database containing all applicable CDTFA registration data for each GG t account. Said database shall also identify the quarterly transactions and use tax allocations under each account for the most current and previous quarters where available. 1.2 Consultant shall provide updated reports each quarter identifying changes in allocation totals by individual businesses, business groups and by categories. Quarterly aberrations due to State audits, fund transfers, and receivables, along with late or double payments, will also be identified. Quarterly reconciliation worksheets to assist finance officer with budget forecasting will be included. 1.3. Consultant shall advise and work with City Staff on planning and economic questions related to maximizing revenues, preparation of revenue projections and general information on transactions and use tax questions. 1.4. Consultant shall make available to City GG database containing all applicable registration and quarterly allocation information for City business outlets registered with the CDTFA. The database will be updated quarterly. 2. Deficiency/Allocation Reviews and Recovery 2.1. Consultant shall conduct on-going reviews to identify and correct unreported transactions and tax payments and distribution errors thereby generating previously unrealized revenue for City. Reviews shall include: 2.1.(a) Comparison of county-wide local tax allocations to transactions tax for brick and mortar stores and other cash register-based businesses, where clearly all transactions are conducted on-GG 2.1.(b) Review of any significant one-time use tax allocations to ensure that there is corresponding transaction tax payments for taxpayers with nexus within City boundaries. 2.1.(c) Review of state-wide transactions tax allocations and patterns to identify any obvious errors and omissions. 2.1.(d) Identification and follow-up with any potentially large purchasers of supplies and equipment (e.g. hospitals, universities, manufacturing plants, agricultural operations, refineries) to Page 22 of 24 ensure that their major vendors are properly reporting corresponding transactions tax GG 2.2. Consultant will initiate, where the probability of an error exists, contacts with the appropriate taxpayer management and accounting officials to verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner so as to enhance City relations with the business community. 2.2. Consultant shall prepare and submit to the CDTFA all information necessary to correct any allocation errors and deficiencies that are identified and shall follow-up with the individual businesses and the CDTFA to ensure that all back quarter payments due City are recovered. 3. Consulting and Other Optional Services limitation, regarding (i) technical questions and other issues related to sales, use and transactions tax, (ii) utilization of reports to enhance business license collection efforts, (iii) sales tax projections for proposed annexations, economic development projects and budget planning, (iv) negotiating/review of tax sharing agreements, (v) establishing purchasing corporations, (vi) meeting with taxpayers to encourage self- assessment of tax obligations, and (vii) other sales, use or transactions tax revenue-related matters. FEES 4. Transactions Tax and Economic Analysis/Forecasting Services/Reports 4.1. Fees shall be paid as follows: 4.1.1 For the first one-year term commencing April 1, 2025 and, upon renewal, for the second one-year term commending April 1, 2026, $200 per month, for the transaction district tax reports that Consultant includes with the quarterly sales tax analyses for each such term. 4.1.2 Upon renewal, for the third one-year term commencing April 1, 2027, $300 per month, billed quarterly, for the transaction district tax reports that Consultant includes with the quarterly sales tax analyses for such term. 4.1.3 Upon renewal, for the fourth one-year term commencing April 1, 2028, and each and for each one-year renewal term thereafter, $300 per month, billed quarterly, as adjusted by Consumer Price Index for All Urban Consumers (CPI-U) for All items in Los Angeles-Long Beach-Anaheim, CA, not seasonally adjusted, as reported by the U.S. Bureau of Labor Statistics for the transaction district tax reports that Consultant includes with the quarterly sales tax analyses for each such term. The increase in CPI shall be based on the change in CPI most recently reported by the Bureau of Labor Statistics over for the immediately 12 month period extending backwards from the previous most recent April 30th through to the previous April 30th. 4.2. For the Initial Term and each one-year renewal term, the monthly fee shall be invoiced quarterly in arrears and shall be paid by City no later than 30 days after receipt of the invoice. 5. Allocation and Audit Recovery Services 5.1. For the Initial Term and for each one-year renewal term, Fees shall be paid 25% of the initial amount of new transactions or use tax revenue received by City because of audit and recovery work performed by Consultant, (hereafter referred to as "audit fees"). New revenue shall not include any amounts determined and verified by City or Consultant to be increment attributable to causes other than Agreement. In the event that Consultant is responsible for an increase in the tax reported by businesses already properly making tax payments to the City, it shall prior to the application of the audit fee. Said audit fees will apply to state fund transfers received for those specific quarters identified as being missing and/or deficient following completion of the audit Page 23 of 24 by Consultant and confirmation of corrections by the California Department of Tax and Fee Administration but shall not apply prospectively to any future quarter. Consultant shall provide City with an itemized quarterly invoice showing all formula calculations and amounts due for audit fees. 5.2. Consultant shall obtain prior approval from City for each specific business for which payment of audit fees will be expected. Said approval shall be deemed given when the City Manager or his/her designated representative, signs a Work Authorization form, a copy of which is attached as Exhibit B. City shall pay audit fees upon Consultant's submittal of evidence of State fund transfers and payments to City from businesses identified in the audit and approved by City. 5.3. The above sum shall constitute full reimbursement to Consultant for all direct and indirect expenses and employees, and travel expenses connected with contacting local and out-of-state businesses and the CDTFA Staff. 6. Consulting and Other Optional Services 6.1. Fees for performing the consulting and other optional Services described above shall be based on the following initial hourly rates: (i) Principal - $325; (ii) Programmer - $295; (iii) Senior Analyst - $245; and (iv) Analyst - $195. 6.2. Consultant may change the rates for its hourly Fees from time to time. Consultant shall provide City with not less than thirty (30) of any changes in such hourly Fees. 7. General Provisions Relating to Fees 7.1. Fees will be invoiced monthly to City for Services performed during the prior month. To the extent revenue disbursement. 8. Confidentiality Information Se disclosure of confidential taxpayer information contained in the records of the CDTFA. Section 7056 specifies the conditions under which a city, county or district may authorize persons other than such city, conditions specified in Section 7056-(b)(1) of the State of California R&T Code are hereby made part of this Agreement: 8.1. Consultant is authorized by this Agreement to examine sales, use or transactions and use tax records of the CDTFA provided to City pursuant to contract under the Bradley-Burns Uniform Local Sales and Use Tax Law R&T Code Section 7200 et.seq. 8.2. Consultant is required to disclose information contained in, or derived from, those sales or transactions and use tax records only to an officer or employee of City who is authorized by City resolution provided to the CDTFA to examine the information. 8.3. Consultant is prohibited from performing consulting services for a retailer (as defined in R&T Code Section 6015), during the term of this agreement. 8.4. Consultant is prohibited from retaining the information contained in or derived from those sales, use or transactions and use tax records after this agreement has expired. Information obtained by examination of the CDTFA records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the City as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code. The resolution shall designate the Consultant as a person authorized to examine sales and use tax records and certify that this agreement meets the requirements set forth above and in Section 7056 (b), (1) of the Revenue and Taxation Code. Page 24 of 24 SAMPLE SAMPLE EXHIBIT B Work Authorization No. ______ The following business or businesses, located in the City of Seal Beach identified as having the potential for generating additional tax revenues to the City of Seal Beach. Consultant is hereby authorized to contact the given business(s) and the California Department of Tax and Fee Administration to verify the accuracy of the current reporting methodology and obtain the necessary documentation for the Department of Tax and Fee Administration, to bill for uncollected transactions and use tax payments or modify misallocated payments and to return revenues that may 200 per month, billed quarterly, and 25% of the new transactions tax revenue received by the District as a result of audit and recovery work performed by Consultant, as set forth in the Professional Services Agreement between Consultant and District for Measure CITY: CITY OF SEAL BEACH By: Print Name: Title: Date: CONSULTANT: HINDERLITER, DE LLAMAS AND ASSOCIATES By: Print Name: Title: Date: Agenda Item P AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Specific Plan Amendment 24-2 for the Amendment to the Main Street Specific Plan Pertaining to the Main Street Outdoor Uses Development Standards to Allow Size Flexibility for Outdoor Dining Tables, Merchandise Displays, and Benches ________________________________________________________________ SUMMARY OF REQUEST: That the City Council: 1. Conduct a Public Hearing to receive input and consider the Planning Commission’s recommendation to approve Ordinance 1717, adopting Specific Plan Amendment 24-2; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1717, an Ordinance adopting Specific Plan Amendment 24-2 for the amendment of the Main Street Specific Plan pertaining to the Main Street Outdoor Uses Development Standards to allow size flexibility for outdoor dining tables, merchandise displays, and benches, and finding the proposed Ordinance exempt from the California Environmental Quality Act. BACKGROUND AND ANALYSIS: On May 28, 2024, the City Council adopted Ordinance 1709, amending the Main Street Specific Plan (“MSSP”) to create the Main Street Outdoor Use Program (“Program”) allowing administrative review of minor outdoor accessory uses such as dining tables, merchandise display, and storefront benches. Over the last few months, staff has had the opportunity to work with the Program and is recommending minor changes that provide additional flexibility while maintaining the important design standards related to accessibility and pedestrian flow along Main Street. Additionally, when Ordinance No. 1709 was approved by the City Council, a six-month update was requested. This staff report serves to both provide the update and to recommend minor modifications to the Program. Page 2 1 9 5 8 Six Month Update On May 30, 2024, informational letters were hand delivered by staff to each business on Main Street. These letters provided background on the Program and outlined the process on how to apply. The letter stated that the Program would go into effect on July 1, 2024, and encouraged the businesses to apply before that date. By the second week of July, Staff had only received five applications. Following this, Code Enforcement surveyed Main Street and identified 40 businesses that had items displayed outside without an outdoor use permit or an application on file. Courtesy Notices, along with a second copy of the informational letter, were issued to each business informing them of their required participation in the Program to maintain tables, benches, merchandise displays, and signs outdoors. Following the issuance of the Courtesy Notices, Staff received 13 additional applications, for a total of 18. Staff has issued eight outdoor use permits, and 10 applications are currently undergoing the review process. Of the 40 courtesy notices that were issued, 13 cases have been resolved either by the business removing the outdoor items and choosing to not participate in the Program, or by successfully submitting an application and receiving approval to maintain minor outdoor uses. Twelve businesses have continued to maintain outdoor uses without the benefit of a permit, submitting an application, or responding to staff after repeated attempts to make contact. Notices of Violation have been issued to unresponsive businesses, with a third copy of the informational letter attached. Administrative citations have not yet been issued, as staff is attempting to make a good faith educational outreach prior to imposing penalties; however, an administrative citation would be the next step for businesses that continue to operate in violation. Currently, there are 27 businesses (of which 10 have formal applications) that are working with the City in good faith to obtain an Outdoor Use Permit. The application process does take some time due to insurance information that is required by the City for liability purposes in order for a business to maintain minor outdoor uses outside their storefronts, both on private property and in the public right-of-way. Most participating businesses have expressed satisfaction with the ability to display outdoor uses and with the amount of minor outdoor uses that are allowed to be displayed. Most businesses are able to provide the eight-foot required sidewalk clearance; however, a few locations have encountered challenges with the strictness of the specific dimensions for table and merchandise displays. While these locations are able to provide eight feet of clear sidewalk space and meet the width requirements per storefront, they do not meet other standards listed, such as depth of merchandise display or tables that are Americans with Disabilities Act (ADA) compliant but not small enough to meet the adopted 30-inch limit. Staff has also received requests for an additional bench in lieu of a dining table. Currently, the Program only allows one bench, even though the additional bench would encompass the same area as a dining table, which is allowed. Page 3 1 9 5 8 Proposed Modifications In an effort to provide flexibility to businesses while maintaining a comfortable pedestrian walking space in alignment with intent of the original MSSP amendment, staff proposes to amend Table 3 of the MSSP. The proposed modifications would allow businesses flexibility for outdoor use dining table sizes, the quantity of benches permitted, and merchandise display sizes, while still meeting the performance standards of providing eight feet of clear sidewalk space and not taking up more than 60 inches of width for a 25-foot store front, 90 inches for a 37.5-foot store front, and 120 inches for a 50-foot store front. The proposed modifications would allow businesses to have limited flexibility regarding size of dining tables, merchandise displays, chairs, and benches. Currently, dining tables are subject to very specific dimensions, which makes it difficult to meet ADA compliance requirements in some cases. Additionally, merchandise displays are limited to a 15-inch depth if they were on a 60-inch wide rack, when many merchants need a depth closer to 24 or 30 inches. In order to alleviate this issue, Staff proposes to eliminate the required depth dimension. Instead, the depth of tables/displays would be limited by the 8-foot minimum unobstructed clear path required. The total quantity permitted would also be limited by store frontage width requirements of 60 inches for a 25-foot storefront, 90 inches for a 37.5-foot storefront, and 120 inches for a 50-foot storefront. The changes would permit various table sizes and thus be more accommodating for ADA seating compliance. Additionally, it would give business owners flexibility to decide how to use the permitted outdoor use area. The proposed amendment would also allow eligible business to apply for more than one bench through the Program, to be used in lieu of dining tables or merchandise displays. Currently, only one bench is permitted per storefront, regardless of the store frontage width, including if no other outdoor use is proposed. Staff has received proposals for two benches and no dining tables; however, the MSSP does not allow this, even though the proposal would occupy the same space as two tables and no benches. Staff proposes to alter the standards to allow flexibility for additional benches to replace areas that could be occupied by dining tables or merchandise displays. Additionally, the amendment would remove the dimensions associated with the quantity of the chairs. The quantity of chairs will continue to be limited by the store frontage’s linear width. A major goal of the Program is to create a vibrant and pedestrian-friendly environment while preserving the unique character and charm of Main Street. These amendments intend to allow businesses flexibility to provide outdoor seating in the form of tables, chairs, and benches. Attachment C identifies the edits to the MSSP Table 3 – Outdoor Use Development Standards, which contains the development standards for uses under the Program. Attachment D contains the proposed, clean version of Table 3. The Main Street Specific Plan in its entirety with the proposed edits is found in Attachment E. Page 4 1 9 5 8 Planning Commission Recommendation On November 18, 2024, the Planning Commission considered the Specific Plan Amendment and recommended approval of the changes under consideration tonight, without modification. ENVIRONMENTAL IMPACT: Pursuant to the California Environmental Quality Act (CEQA), the Community Development Department has determined that the proposed amendments to the Main Street Specific Plan are categorically exempt from environmental review under CEQA and the City’s CEQA Guidelines under Class 1 (Existing Facilities), Class 4 (Minor Alterations to Land), and Class 5 (Minor Alterations in Land Use Limitations) pursuant to CEQA Guidelines Section 15301(c) and (e), Section 15304(e), and Section 15305, as the amendments do not authorize new uses or development beyond those that the existing Specific Plan allows. The City has determined none of the six exceptions to the use of a categorical exemption apply to this project (CEQA Guidelines Section 15300.2). LEGAL ANALYSIS: This item has been reviewed for content and approved as to form. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council: 1. Conduct a Public Hearing to receive input and consider the Planning Commission’s recommendation to approve Ordinance 1717, adopting Specific Plan Amendment 24-2; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1717, an Ordinance adopting Specific Plan Amendment 24-2 for the amendment of the Main Street Specific Plan pertaining to the Main Street Outdoor Uses Development Standards to allow size flexibility for outdoor dining tables, merchandise displays, and benches, and finding the proposed Ordinance exempt from CEQA. Page 5 1 9 5 8 SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Patrick Gallegos Alexa Smittle, Community Development Director Patrick Gallegos, Interim City Manager Prepared by: Shaun Temple, Planning Manager ATTACHMENTS: A. Ordinance 1717 B. Existing MSSP Table 3 – Outdoor Use Development Standards with Edits C. Proposed MSSP Table 3 – Outdoor Use Development Standards Clean Version D. Planning Commission Resolution 24-16 E. Amended Main Street Specific Plan ORDINANCE 1717 AN ORDINANCE OF THE CITY OF SEAL BEACH ADOPTING SPECIFIC PLAN AMENDMENT 24-2, FOR THE AMENDMENT OF THE MAIN STREET SPECIFIC PLAN PERTAINING TO THE MAIN STREET OUTDOOR USES DEVELOPMENT STANDARDS TO ALLOW SIZE FLEXIBILITY FOR OUTDOOR DINING TABLES, MERCHANDISE DISPLAYS, AND BENCHES AND FINDING THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section 1.Pursuant to California Government Code Section 65453(a), a specific plan may be adopted by resolution or by ordinance and may be amended as often as deemed necessary by the legislative body; and pursuant to Seal Beach Municipal Code 11.5.15.005, the City Council shall adopt specific plans and amendments to specific plans by ordinance. Section 2.The City Council of the City of Seal Beach does hereby find, determine, and declare that: A. On July 22, 1996, the City Council Adopted Resolutions 4490, 4491, 4492, and 4493 to approve Revision 96-1 of the Main Street Specific Plan, General Plan Amendments 96-IA and 96-IB for consistency with the Specific Plan and General Plan, and to adopt the associated Negative Declaration. B. On August 12, 1996, the City Council adopted Ordinance Nos. 1406 and 1407 creating the Main Street Specific Plan zone. C. On May 28, 2024, the City Council adopted Specific Plan Amendment 24-1 creating an Outdoor Use Program within the Main Street Specific Plan; and D. On November 18, 2024, the Planning Commission considered this Ordinance at a duly noticed public hearing, as prescribed by law, at which time City staff and interested persons had an opportunity to and did testify either in support of or against this matter. E. At the conclusion of the Planning Commission hearing and after due consideration of the testimony, the Planning Commission adopted Resolution No. 24-16, recommending approval of this Ordinance by the City Council with no modifications. F. The City Council, at a regular meeting, considered this Ordinance on December 9, 2024, at a duly noticed public hearing, as prescribed by law, at which time City staff and interested persons had an opportunity to and did testify either in support of or against this matter. -2- 9 6 4 1 G. Following the public hearing, the City Council considered the entire record of information received at the public hearings before the Planning Commission and City Council. Section 3.In accordance with Section 11.5.15.025 (Required Findings) of the Municipal Code, no findings are required for legislative acts. Notwithstanding this general rule, the Council shall determine whether the proposed action is consistent with the General Plan. The City Council hereby makes the following findings of General Plan consistency, as supported by substantial evidence on the record including and incorporating all facts and evidence in the staff report and its attendant attachments, in support of approval of Specific Plan Amendment 24-2: Finding: The proposed amendment is consistent with the following General Plan Goals and Policies: Land Use Element 1. Main Street Specific Plan: The General Plan states that the City Council adopted the Main Street Specific Plan to provide a vision document to preserve and enhance the downtown area of Seal beach. The Main Street Specific Plan provides specific direction regarding allowed land uses and operations, building and design provisions, and parking standards and management, to ensure compatibility between land uses and preservation of the area’s small-town character. 2. Features of the Community: A goal of the City is to maintain and promote those social and physical qualities that enhance the character of the community and the environment in which we live. 3. Commercial: The City should explore available means to support, encourage, and balance commercial development within the city. Section 4.The City Council determines that this ordinance is exempt from environmental review under CEQA and the City’s CEQA Guidelines under Class 1 (Existing Facilities), Class 4 (Minor Alterations to Land), and Class 5 (Minor Alterations in Land Use Limitations) pursuant to CEQA Guidelines Section 15301(c) and (e), Section 15304(e), and Section 15305, as the amendments do not authorize new uses or development beyond those that the existing Specific Plan allows. The City has determined none of the six exceptions to the use of a categorical exemption apply to this project (CEQA Guidelines Section 15300.2). Section 5.Based on the foregoing, the City Council hereby adopts Specific Plan Amendment 24-2 to amend the Main Street Specific Plan as shown in Exhibit A (Amended Main Street Specific Plan) of this Ordinance, incorporated herein by this reference as though set forth in full. Section 6.The City Clerk shall make such conforming amendments to the Zoning Code as are necessary to codify the changes to the Main Street Specific Plan enacted pursuant to this Ordinance. -3- 9 6 4 1 Section 7.The Community Development Director shall submit a copy of the Ordinance to the Department of Housing and Community Development within 60 days after adoption of this Ordinance. Section 8.If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional. Section 9.The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. Section 10.This Ordinance shall take effect thirty (30) days after passage. INTRODUCED at a regular meeting of the City Council of the City of Seal Beach held on the 9th day of December, 2024. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the ____ day of _______, 2024. AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: __________________________ Schelly Sustarsic, Mayor ATTEST: ___________________________ Gloria D. Harper, City Clerk APPROVED AS TO FORM: _________________________ Nicholas Ghirelli, City Attorney MAIN STREET OUTDOOR USES PROGRAM 6 -MONTH UPDATE Education Outreach •May 30: Informational letters were hand delivered by Staff to each business •July: Main Street surveyed –40 businesses identified maintaining an outdoor use without a permit or application. Only 5 applications received in total. NEXT 6 MONTHS •Businesses maintaining an outdoor use without a permit or application reduced from 40 to 12. •8 outdoor use permits issued •10 applications under review •17 businesses working with staff in a good faith effort 2 3 8-foot Clearance Requirement Has Been Good Strictness of table/display sizes has created challenges 4 Request for Multiple Benches 5 6 Depth of outdoor use items regulated by 8-foot clearance requirement 7 8 9 Agenda Item Q AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Alexa Smittle, Community Development Director SUBJECT:Code Enforcement Multiple Unit Inspection Policy ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7594 establishing policies and procedures for Code Enforcement inspections of multiple unit residential buildings, which have reported substandard conditions, pursuant to the requirements of Assembly Bill 548. BACKGROUND AND ANALYSIS: Assembly Bill 548 (AB 548), enacted during the 2023 legislative session, amended the State’s Health and Safety Code by adding Section 17970.7, which mandates that local enforcement agencies develop policies and procedures for inspecting multi-unit buildings if a unit is determined to be substandard, or in violation of the State Housing Law, and has the potential to affect other units. Existing law authorizes officers, employees, or agents of an enforcement agency to enter and inspect any building or premises to secure compliance with the State Housing Law. It also defines conditions under which a building, portion of a building, or premises are deemed substandard or in violation of the State Housing Law, emphasizing the importance of ensuring the safety and habitability of buildings used for human habitation. The new requirement enacted pursuant to AB 548 requires that local enforcement agencies develop policies and procedures for inspecting a building with multiple units if a building inspector or code enforcement officer has determined that (1) a unit is substandard, and (2) that the defects or violations have the potential to affect other units of the building. In response to the requirements of AB 548, the Community Development Department, as the local enforcement agency, has drafted a policy document for review and approval by the City Council, which includes the inspection and notification procedures. The policy also addresses the circumstances under which property owners are required to pay relocation benefits to tenants impacted by an Page 2 1 9 5 7 order to vacate, and appeal procedures applicable to such relocation benefit orders. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has approved the policy and resolution as to form. FINANCIAL IMPACT: There is no financial impact to adopt this policy. However, AB 548 may result in increased workloads which could be associated with additional costs. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7594 establishing policies and procedures for Code Enforcement inspections of multiple unit residential buildings, which have reported substandard conditions, pursuant to the requirements of Assembly Bill 548. SUBMITTED BY: NOTED AND APPROVED: Alexa Smittle Patrick Gallegos Alexa Smittle, Community Development Director Patrick Gallegos, Interim City Manager Prepared by: Shaun Temple, Planning Manager ATTACHMENTS: A. Resolution 7594 B. Code Enforcement Multiple Unit Inspection Policy RESOLUTION 7594 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE CODE ENFORCEMENT MULTIPLE UNIT INSPECTION POLICY WHEREAS, California Assembly Bill 548 (AB 548) was enacted during the 2023 legislative session to ensure safe and habitable living conditions in multi-unit residential buildings, by requiring local enforcement agencies to establish policies and procedures for inspecting such buildings when a housing unit is found to be substandard or in violation of state housing laws, and the City’s building official, or their code enforcement officer or building inspector determines that the substandard conditions(s) could reasonably affect other units; and, WHEREAS, AB 548 requires that the developed policies and procedures meet specific requirements, including the identification of hazardous conditions that could affect other units, the inspection of adjacent units, the allowance of inspection of all units in the presence of severe building-wide conditions, and the provision of notice to property owners; and, WHEREAS, the City of Seal Beach recognizes the importance of safeguarding the health and safety of residents living in substandard multi-unit housing and is committed to ensuring compliance with State law. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows: SECTION 1. The City of Seal Beach acknowledges the importance of maintaining safe residential living conditions in multiple-unit residential buildings. SECTION 2. The Code Enforcement Multiple Unit Inspection Policy provides procedures for the enforcement of housing regulations and the maintenance of habitable living conditions that protect the well- being of residents, and procedures for appeal of orders for payment of relocation benefits pursuant to State law. SECTION 3. The City Council hereby approves the City of Seal Beach Code Enforcement Multiple Unit Inspection Policy, attached hereto as Exhibit A. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 9th day of December 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7594 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 9th day of December 2024. Gloria D. Harper, City Clerk 211 8th Street, Seal Beach, CA 90740  562-431-2527 Sealbeachca.gov/Departments/Community-Development CODE ENFORCEMENT MULTIPLE UNIT INSPECTION POLICY SCOPE This policy: 1. Sets forth criteria for the Building Offical, or their designee such as Building Inspectors (Inspector) or Code Enforcement Officers (Officer), to use in determining whether the substandard condition(s) could reasonably affect other units, including but not limited to assessment of the property’s age, type, and size; the cause(s) of the substandard condition(s); and the history of violations; 2. Sets forth procedures to reasonably attempt to inspect additional units at the property. 3. Explains the criteria and responsibility of the owner to pay relocation benefits to tenants displaced when a violation so extensive and of such a nature that the immediate health and safety of the tenant is endangered and establishes the appeal procedures for an order to pay relocation benefits. PURPOSE The purpose of this policy is to facilitate inspections of additional units in a multi-unit building where a violation has been reported or identified in a single unit, which may also be affecting other units in the building. Merely notifying other residents in the building of a violation in one unit may not be enough to prompt such residents to submit additional inspection requests that would uncover the full scope of the problem. Therefore, this policy establishes processes and procedures to identify and address unreported problems before they worsen. INSPECTION PROCEDURES INITIAL INSPECTION AND DETERMINATION Upon receiving a complaint regarding a residential rental unit in a substandard condition, the Building Official, or an Officer), Inspector or other designee, will inspect the unit in a timely manner. If the ASSEMBLY BILL 548 (AB 548) BACKGROUND AB 548 (Statutes of 2023) requires local enforcement agencies to develop policies and procedures for inspecting a property with multiple residential units whenever an inspector or code enforcement officer has determined that (1) a unit is “substandard,” as defined in Health and Safety Code Section 17920.3, or in violation of Section 17920.10 (regarding lead hazards); and (2) the defects or violation have the potential to affect other units at the property. Code Enforcement Multiple Unit Inspection Policy Code Enforcement Multiple Unit Inspection Policy | 2 9 6 3 4 Building Official or their designee finds the unit is “substandard,” as defined in Section 17920.3, or in violation of Section 17920.10 (regarding lead hazards), and if the unit is part of a multi-unit building, the Building Official or their designee will make a determination as to whether the defects or violation have the potential to affect other units at the property. The criteria of the assessment to inspect neighborhing units shall focus primarily on, but not be limited to: Interconnected Systems - such as plumbing, electrical, and HVAC. Potential for Spread – such as mold, pest infestation, or structural instability. History of Violations – such a frequency of similar violations in the past, or if there have been recurring complaints from multiple tenants. History of widespread work performed without building permits. The assessment will consider factors such as building type, age, size, construction type, cause(s) of the substandard condition(s), and building history. ADDITIONAL UNIT INSPECTIONS The Building Official, or their Officer, Inspector or other designee, shall reasonably attempt to inspect additional units at the property by leaving inspection request notices on the doors of at least the units adjacent to, above, and below the unit where the defect or violation was located. The inspection request notice shall inform the tenant that a defect or violation has been found in a neighboring unit, and inform the tenant of the City's wish to confirm if the condition is affecting additional units. If the defect or violation is severe, and/or if additional defects or violations are found in other units, the inspection may extend to all units on the premises. Property owners shall be responsible for inspection fees as outlined in the Inspection Fees section of the City’s adopted Fee Schedule. INSPECTION FEE Property owners are required to pay for all inspections related to substandard conditions identified in their units. The current fee structure is as follows: Inspection Fee: Section H. Other Fees, Section 20. Fees for Services Not Listed in this Fee Schedule. This fee will be applied to each additional unit inspections and all reinspections, including for the original unit. The property owner is responsible for paying inspection fees for all units where substandard conditions are found or suspected. The fees are designed to cover the costs associated with enforcing housing regulations and ensuring the safety and habitability of multi-unit buildings. Property owners will be billed for these fees separately from any administrative penalties or citation costs. Code Enforcement Multiple Unit Inspection Policy Code Enforcement Multiple Unit Inspection Policy | 3 9 6 3 4 ENFORCEMENT Upon determining that a substandard condition in a unit could reasonably affect other units, the Building Official, or an Officer, Inspector or other designee shall issue a Notice of Violation which includes a notice or order to repair or abate within a reasonable time after the inspection has been completed; and can issue administrative citations to responsible parties for violations of housing regulations. Service of administrative citations shall be attempted through mail or posting. The Building Official or their designee shall advise the owner or operator of each known violation and of each action required to remedy the violation and schedule a reinspection to verify correction of the violation. Reinspection of the affected units shall be conducted to verify correction of the violations. The City may also exercise other remedies provided by Municipal Code and/or state law. ORDERS TO VACATE AND RELOCATION BENEFITS In the event of severe violations, the Building Official, or an Officer, Inspector or other designee, may issue an order to vacate a unit. Pursuant to California Health and Safety Code Sections 17975 through 17975.10, any tenant displaced from a rental unit due to this order is entitled to relocation benefits from the owner as a result of a violation so extensive and of such a nature that the immediate health and safety of the tenant is endangered, unless the tenant substantially contributed to the conditions necessitating the order to vacate, or unless the conditions were caused by a natural disaster such as a fire, earthquake, flood, or other event beyond the control of the owner or the designated agent and the owner or designated agent did not cause or contribute to the condition. Building Official, or an Officer, Inspector or other designee will provide notice and a written summary of applicable provisions of state law to both the owner and the tenant, including the statutory requirement that relocation benefits are the responsibility of the owner, pursuant to Article 2.5 (Tenant Relocation Assistance) of the California Health and Safety Code. An owner may appeal any order for payment of relocation benefits by the Building Official and/or their designee by filing an appeal with the City’s Board of Appeals pursuant to Section 112 of the City of Seal Beach Building Code. The owner has the right to appeal the substantive basis upon which the order is determined, and the relocation benefit amount. Code Enforcement Multiple Unit Inspection Policy Code Enforcement Multiple Unit Inspection Policy | 4 9 6 3 4 DOCUMENTATION AND REPORTING The Building Official and/or their deseignee shall document all inspections and notifications related to AB 548 compliance. The documentation will include: Detailed descriptions of the substandard conditions or violations found, Justification for determining the potential impact on other units, Copies of notices or orders issued to the property owner, Records of additional units inspected and their conditions, Record of the written summary of relocation benefits provided to property owner and tenant, and Verification of corrected violations during reinspections. Reports summarizing AB 548 inspections, violations, and compliance status shall be maintained for review upon request, in redacted form as appropriate in accordance with State law. AB 548 Policies and procedures for inspecting multi-unit buildings if a unit is determined to be substandard City Council December 9, 2024 Criteria to Inspect Neighboring Units •Interconnected Systems - such as plumbing, electrical, and HVAC. •Potential for Spread – such as mold, pest infestation, or structural instability. •History of Violations – such a frequency of similar violations in the past, or if there have been recurring complaints from multiple tenants. •History of widespread work performed without building permits. Information on Relocation Benefits •Order to Vacate •Appeal Procedure •City not involved in Financial Payments – strictly between tenant and landlord Reasonable Attempt to Inspect •Door knock of neighboring units •Door hangers when no response to door knock Agenda Item R AGENDA STAFF REPORT DATE: December 9, 2024 TO: Honorable Mayor and City Council THRU: Patrick Gallegos, Interim City Manager FROM: Gloria D. Harper, City Clerk SUBJECT:Declare Results of the November 5, 2024 Election For City Council Districts Two and Four and Measure GG and Swear-In the Newly Elected City Council Members _____________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7595: 1. Declaring the results of the November 5, 2024, election for Seal Beach City Council Districts Two and Four and Measure GG; and, 2. Swearing-in the newly elected city officials for a full term: District 2 – Ben Wong and District 4 – Patty Senecal. BACKGROUND AND ANALYSIS: City Council Districts Two and Four The City of Seal Beach City General Municipal Election was held on November 5, 2024, and the canvass and certification of election by the County of Orange was completed on December 3, 2024 (Attachment C). The following votes were cast: District Two District Four Measure GG – City of Seal Beach Services Measure The following ballot measure, referred to as Measure GG, the City of Seal Beach Services Measure, was also placed before voters on the November 5, 2024, general municipal election. The text of Measure GG is as follows: Funding for the City of Seal Beach General Services such as maintaining 911 medical emergency, police, fire response, helping prevent property crimes and retail thefts; keeping public areas and beaches safe and clean; helping protect Candidate Votes Cast Ben Wong 2,432 (100%) Candidate Votes Cast Patty Senecal 2,402 (100%) 1 9 6 4 local water quality; reducing risk of flooding; retaining and supporting local businesses; addressing homelessness; repairing streets & potholes; shall an ordinance be adopted establishing a ½¢ sales tax providing approximately $3,000,000 annually until ended by voters; requiring audits and public spending disclosure of all funds spent for Seal Beach? For Against 10,689 (68.25%)4,973 (31.75%) As a result of the election, a majority of the voters voting on Measure GG – City of Seal Beach, Services Measure voted in favor of the measure; therefore, Measure GG – City of Seal Beach, Services Measure (Attachment B. Ordinance 1714) was approved. Staff will transmit a copy of the adopted ordinance to the California Department of Tax and Fee Administration (“Department”) for implementation. In addition, a separate agenda item includes resolutions and agreements with the Department for administration of the new sales tax. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney reviewed and approved this item to form. FINANCIAL IMPACT: The election costs for the November 5, 2024, Consolidated Election for the City of Seal Beach Council Districts Two and Four, as well as Measure GG total approximately $60,000 and is included in the FY 2024-25 Budget. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7595: 1. Declaring the results of the November 5, 2024, election for Seal Beach City Council Districts Two and Four and Measure GG; and, 2. Swearing-in the newly elected city officials for a full term: District 2 – Ben Wong and District 4 – Patty Senecal. 1 9 6 4 SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Patrick Gallegos Gloria D. Harper, City Clerk Patrick Gallegos, Interim City Manager ATTACHMENTS: A. Resolution 7595 B. Ordinance 1714 C. Exhibit A Registrar of Voter’s Canvass and Certificate of Election Agenda Item S AGENDA STAFF REPORT DATE:December 9, 2024 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, Interim City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:City Council Reorganization ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve reorganization of the City Council and selection of Mayor and Mayor Pro Tempore for 2025. BACKGROUND AND ANALYSIS: Annually, the City Council selects one of its members as Mayor and one member as Mayor Pro Tempore. Pursuant to City Charter Section 404, the Mayor shall serve in such capacity at the pleasure of the City Council and the City Council shall also designate a Mayor Pro Tempore. City Charter Section 404 is attached for reference. 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. 1 9 4 5 RECOMMENDATION: That the City Council approve reorganization of the City Council and selection of Mayor and Mayor Pro Tempore for 2025. SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Patrick Gallegos Gloria D. Harper, City Clerk Patrick Gallegos, Interim City Manager ATTACHMENTS: A. City Charter Section 404