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HomeMy WebLinkAboutPacket 04132026     A G E N D A MEETING OF THE CITY COUNCIL Monday, April 13, 2026 ~ 7:00 PM City Council Chambers 211 Eighth Street Seal Beach, California LISA LANDAU MAYOR Third District BEN WONG MAYOR PRO TEM Second District   JOE KALMICK COUNCIL MEMBER First District                                                           PATTY SENECAL COUNCIL MEMBER Fourth 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. CALL TO ORDER PLEDGE OF ALLEGIANCE COUNCIL ROLL CALL PRESENTATIONS / RECOGNITIONS • Neurodiagnostic Week April 19-25, 2026 Proclamation • Proclaiming April 19-25, 2026 as Cal Cities Week • Mid-Year Budget Update 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, City Manager COUNCIL COMMENTS General Council Member comments and reporting pursuant to AB 1234. COUNCIL ITEMS – None CONSENT CALENDAR Items on the consent calendar are considered to be routine and are enacted by a single motion with the exception of items removed by Council Members. A. Approval of the City Council Minutes - That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on March 23, 2026. B. Demand on City Treasury (Fiscal Year 2026) - Ratification. C. Adoption of a Resolution Proclaiming April 19-25, 2026 as California Cities Week - That the City Council adopt Resolution 7753 proclaiming the week of April 19 through April 25, 2026 as California Cities Week. D. Approving and Authorizing the Amended and Restated County-Wide Agreement for NPDES Stormwater Permit Implementation - That the City Council adopt Resolution 7754: 1. Approving the Amended and Restated Agreement with the County of Orange, Orange County Flood Control District and participating Orange County Cities for National Pollutant Discharge Elimination System stormwater permit implementation services; and, 2. Authorizing and directing the City Manager to execute the Agreement on behalf of the City. E. Consideration of an Agreement with Flock Group, Inc. for the Installation and Use of Fixed Automated License Plate Reader Cameras at Certain Locations Near the 405 Freeway and 22 Freeway Ramps - That the City Council adopt Resolution 7755 approving and authorizing the City Manager or his designee to enter into a three-year agreement with Flock Group, Inc. (Flock) for the installation of additional Automated License Plate Reader (ALPR) cameras in the City of Seal Beach near the 405 and 22 freeways, with a not-to-exceed amount of $54,150. F. Consideration of an Agreement with Flock Group, Inc. for the Installation and Use of Fixed Automated License Plater Reader Camera(s) at Certain Locations within College Park East - That the City Council adopt Resolution 7756 approving and authorizing the City Manager or his designee to enter into a three - year agreement with Flock Group, Inc. (Flock) for the installation of additional Automated License Plate Reader (ALPR) cameras in the City of Seal Beach in the areas of Lampson and Basswood and Lampson and Tulip, with a not -to-exceed amount of $36,600. G. Fiscal Year 2025-26 Mid-Year Budget Update and Consideration of Proposed Amendment to the Fiscal Year 2025-26 Budget - That the City Council receive and file the Fiscal Year 2025-26 Mid-Year Budget Update and adopt Resolution 7757 to approve Budget Amendment BA #26-10-01. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC HEARING – None UNFINISHED / CONTINUED BUSINESS – None NEW BUSINESS H. Approving and Authorizing Amendments to the Seal Beach Municipal Code Pertaining to Parking Regulations, the Residential Parking Permit Program, Paid Parking, and Other Regulations - That the City Council introduce, waive full reading, and read by title only, Ordinance 1726, an Ordinance of the City of Seal Beach Amending Certain Sections of Chapter 8.15 (Stopping, Standing and Parking) of the Seal Beach Municipal Code (SBMC) to modernize paid parking provisions, establish a residential parking permit program framework, clarify curb- use regulations including daylighting near crosswalks, and make other technical revisions. ADJOURNMENT Adjourn the City Council to Monday, April 27, 2026 at 5:30 p.m. to meet in closed session, if deemed necessary. 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 Mid-Year Budget Update FISCAL YEAR 2025-26 Assumptions Data Sources & Inputs •HDL revenue forecasts (Sales Tax & Property Tax) •City property tax & sales tax analysis historical data •Legislative Updates •Local economic conditions & historical trends •Local Economic Forecasts Revenue Assumptions •Property Tax: Steady assessed valuation growth •Sales Tax: Down from same time last year; fuel up; casual dining up •TOT: Flat; reflects three hotels at capacity Other Revenues: On Budget Expenditures: Mostly On Budget – Fire, Legal Services, General Liability Economic & Risk Assumptions •Inflation; interest rates normalize; federal policy impacts •General Consumer demand/discretionary spending •Construction & capital costs continue to rise •Impacts of War/unknown end date •Rising CalPERS, healthcare, and infrastructure costs considered Methodology Highlights •Continued conservative forecasting based on historical trends and economic forecasts, no changes •No structural deficit projected; contingency reserves maintained FISCAL YEAR 2025-26 Mid Year Budget Update FY 2025-26 Mid-Year General Fund Update 3 SOURCES ADOPTED BUDGET YTD-ACTUAL %ADOPTED BUDGET YTD-ACTUAL % 01-PROPERTY TAXES 15,390,000 5,539,754 36%16,327,000 6,509,908 40% 02-SALES AND USE TAXES 11,891,183 3,454,643 29%14,643,000 4,896,399 33% 03-UTILITY USERS TAX 5,100,000 2,308,720 45%5,440,000 2,289,721 42% 04-TRANSIENT OCCUPANCY TAX 1,850,000 556,046 30%1,890,000 593,316 31% 05-FRANCHISE FEES 1,108,000 237,016 21%1,160,000 221,087 19% 06-OTHER TAXES 829,800 616,830 74%810,000 353,279 44% 07-LICENSES AND PERMITS 872,000 609,284 70%861,000 630,796 73% 08-INTERGOVERNMENTAL 173,800 27,772 16%241,000 67,094 28% 09-CHARGES FOR SERVICES 3,114,700 1,706,830 55%3,315,450 2,123,732 64% 10-FINES AND FORFEITURES 1,598,800 690,014 43%1,582,300 577,670 37% 11-USE OF MONEY AND PROPERTY 750,000 634,092 85%953,000 838,499 88% 12-ALLOCATED COSTS - - - - 13-OTHER REVENUES 85,600 229,459 268%147,330 106,102 72% TOTAL OPERATING REVENUE 42,763,883 16,610,460 39%47,370,080 19,207,604 41% 14-TRANSFERS IN 1,220,781 1,220,781 100%822,000 822,000 100% TOTAL REVENUES & SOURCES 43,984,664 17,831,241 41%48,192,080 20,029,604 42% FY 2024-2025 FY 2025-2026 FISCAL YEAR 2025-26 Mid Year Budget Update FY 2025-26 General Fund Revenue Property Tax Sales Tax Utility Users Tax Charges for Services Fines & Forfeitures Hotel Tax (TOT) 76%90% Property Tax, $16.3 M, 34% Sales and Use Tax, $14.6 M, 31% Utility Users Tax, $5.4 M, 11% Charges for Services, $3.3 M, 7% Fines and Forfeitures, $1.6 M, 3% Transient Occupancy Tax, $1.9 M, 4% Other Revenue, $5. M, 10% FISCAL YEAR 2025-26 Mid Year Budget Update Property Tax Seal Beach Assessed Valuation •$7.9 Billion Orange County Assessor •6,494 Parcels •4.3% YOY/County 5.41% •Median Single-Family Home Sales $1.4 M •Property Tax $16.3 M •34% of General Fund •Stable Revenue Source •.15 of $1.00 •On Budget FISCAL YEAR 2025-26 Mid-Year Budget Update Sales Tax & Use Tax Sales and Use Tax Components $14.6 M: •Largest Consumer Goods and Restaurants •-12% down from prior year •Drop in County and State Pools •Middle East / Discretionary Spending •Consumer Fear Impacts Largest Sectors •2025-26 reflect Measure GG FISCAL YEAR 2025-26 Mid-Year Budget Update Utility Users Tax (UUT) UUT $5.4 M Budget 11%: •Electric, Natural Gas, Telecommunications •Lowered in 2014 •Projection Back on Budget •Increases in utility rates FISCAL YEAR 2025-26 Mid-Year Budget Update Charges for Services Charges for Services 7% $3.3 M: •A fee collected to pay for services related to the activity. •Subsidized by General Fund •Planning Fees Offset Aquatics •On Budget/Exceed Budget FISCAL YEAR 2025-26 Mid-Year Budget Update Transient Occupancy Tax (TOT) TOT $1.6 M: •3 Hotels •The Pacific Inn •Ayres •Hampton •Continues to exceed all historic levels •47 Short Term Rentals FISCAL YEAR 2025-26 Mid-Year Budget Update FY 2025-26 Mid-Year General Fund Update FISCAL YEAR 2025-26 Mid-Year Budget Update USES, BY TYPE ADOPTED BUDGET YTD-ACTUAL %ADOPTED BUDGET YTD-ACTUAL % 01-REGULAR SALARIES 10,269,416 4,873,918 47%10,973,000 4,816,335 44% 02-OTHER PAY AND BENEFITS 4,780,729 2,416,169 51%5,837,084 2,586,706 44% 03-RETIREMENT 5,608,884 4,565,247 81%6,281,829 5,084,124 81% 04-MAINTENANCE AND OPERATIONS 21,324,656 10,937,001 51%22,338,460 11,985,541 54% 05-CAPITAL OUTLAY - - 5,000 2,031 41% 06-DEBT EXPENSE 91,811 - 0%- - TOTAL OPERATING EXPENDITURES 42,075,496 22,792,336 54%45,435,373 24,474,737 54% 07-TRANSFERS OUT 12,253,396 (141,226) -1%14,442,480 517,945 4% TOTAL EXPENDITURES & USES 54,328,892 22,651,110 42%59,877,853 24,992,681 42% FY 2024-2025 FY 2025-2026 Regular Salaries, $11. M, 24% Retirement, $6.3 M, 14% Other Pay & Benefits, $5.8 M, 13% Maintenance & Operations, $22.7 M, 49% FY 2025-26 General Fund Expenditures *Does not include Capital and Operational Transfer FISCAL YEAR 2025-26 Mid-Year Budget Update Maintenance & Operations *excludes transfers CC Discretionary, $.1M, 1% Supplies/Dues/Training, $.29M, 1% Rental/Lease Equipment, $.05M, 0% Contract Professional, $4.29M, 19% Insurance/Workers Comp, $3.16M, 14% Legal, $.59M, 3% Maintenance, $.19M, 1% Equipment, Materials, other, $2.1M, 9% IT Services, $1.26M, 6% Refuse, $1.4M, 6% Fire Services, $7.33M, 33% West Comm, $.98M, 4% Intergovernmental, $.58M, 3% FISCAL YEAR 2025-26 Mid-Year Budget Update •Fire Services •West Comm •Legal Services •Contract Services •Training •Equipment •Insurance •Was below budget – updated Budgeted Adjustments: Fire, Legal, Chamber upgrades 13 Salaries and Benefits FISCAL YEAR 2025-26 Mid-Year Budget Update Next Steps •Budget Planning & Development in Process •CIP/Budget April 13 •Budget Workshops May 5th and 7th •Budget Adoption June 8th Jan Feb Mar Apr May June Revenue and Expense Projections Personnel Budget Development Departmental Budget Preparation Department CIP Preparation City Manager Review Preliminary Budget Preparation Public Input and Engagement City Council Review Budget Adoption Budget Development Timeline Fiscal Outlook •Middle East Fears •Increased Inflation •US Economic Policy Uncertainty •Continue to Look for Revenue Opportunities FISCAL YEAR 2025-26 Mid-Year Budget Update Mid-Year Budget Update FISCAL YEAR 2025-26 1 Brandon DeCriscio From:Patty Senecal Sent:Sunday, April 12, 2026 8:58 PM To:Patrick Gallegos; Michael Henderson; Gloria Harper; Brandon DeCriscio Subject:Fw: Paid Parking Authorization Follow Up Flag:Flag for follow up Flag Status:Flagged From: Seal Beach Avila's El Ranchito <sealbeach@avilaselranchito.com> Sent: Sunday, April 12, 2026 7:25 PM To: Lisa Landau <LLandau@sealbeachca.gov>; Ben Wong <bwong@sealbeachca.gov>; Patty Senecal <psenecal@sealbeachca.gov>; Nathan Steele <NSteele@sealbeachca.gov>; Joe Kalmick <jkalmick@sealbeachca.gov> Subject: Paid Parking Authorization Dear Councilmembers, I am writing to strongly oppose the inclusion of paid parking authorization within proposed Ordinance No. 1726, listed as Item H on Monday night’s agenda. While presented as a modernization of the Parking Code, this ordinance contains a significant policy shift, authorizing paid parking on Main Street, Ocean Avenue, Central Avenue, and Electric Avenue. This is not a minor administrative update, but a substantial change that directly impacts local businesses, residents, and the overall accessibility of our downtown. As the restaurant owner of Avilas El Ranchito for over 10 years, I have seen firsthand how critical convenience and accessibility are to the success of small businesses. Parking is often the deciding factor in whether a customer chooses to visit or go elsewhere. Policies that create additional barriers directly impact foot traffic, revenue, and the long term sustainability of local establishments. Only months ago, the City convened a committee to evaluate paid parking on Main Street. The feedback from merchants, property owners, and residents was clear. There was strong opposition to implementing paid parking. Free parking remains one of the few meaningful incentives that draws visitors to our downtown, supporting small businesses and preserving the character of our community. Equally concerning is the contradiction between this proposal and the City’s stated commitment to supporting local commerce through initiatives like the Business First committee. Increasing costs and barriers for visitors undermines that goal. It is diffic ult to 2 reconcile a Business First approach with policies that make it less convenient and more expensive for customers to patronize local establishments. I respectfully urge the Council to remove the paid parking provisions from Ordinance No. 1726. Thank you for your time and consideration. I feel truly blessed to be part of a community and city such as Seal Beach. Elyse Avila Smith Avila's El Ranchito -Seal Beach Owner 1 Brandon DeCriscio From:Gloria Harper Sent:Monday, April 13, 2026 7:38 AM To:Brandon DeCriscio Subject:Fwd: An Apology and a Correction Follow Up Flag:Follow up Flag Status:Flagged Sent from my iPhone Begin forwarded message: From: Ellery Deaton <ellerydeaton@gmail.com> Date: April 12, 2026 at 9:05:52 PM PDT To: Lisa Landau <LLandau@sealbeachca.gov>, Ben Wong <bwong@sealbeachca.gov>, Patty Senecal <psenecal@sealbeachca.gov>, Nathan Steele <NSteele@sealbeachca.gov>, Joe Kalmick <jkalmick@sealbeachca.gov>, Michael Henderson <MHenderson@sealbeachca.gov>, Patrick Gallegos <PGallegos@sealbeachca.gov>, Gloria Harper <gharper@sealbeachca.gov> Cc: editor2@sunnews.org, tsears@voiceofoc.org, letters@ocregister.com, Shawn Steel <ShawnSteel@shawnsteel.com> Subject: An Apology and a Correction Dear Councilmembers: I must apologize for saying the paid parking language was slipped in. It was not. What actually happened is more troubling: the old paid parking code from 2002 was left in place even after the City reversed course and decided not to install Main Street meters in 2004.* The history matters. In September 2002, the City adopted parking meter zones for Main Street, Ocean, Central, and Electric. In 2004, the Council unanimously overturned the Main Street meter decision. The policy was reversed, but the old code language remained. That same conclusion was reached again in 2024. The Parking Committee voted 5–3 against recommending paid parking on Main Street, and Julie Dixon’s survey documented that businesses, residents, and visitors did not want paid parking on Main. 2 This is now the second time in more than two decades that the documented will of the community has been clear, and yet this modernization of the code still carries forward language the City itself already rejected. This town has generously passed two tax initiatives to help add money to the city's coffers. All we have asked is that you leave our Main Street alone. What you have before you is a modernization of the parking code. It is time to get it right. Please remove the old paid parking code from this modernization of the Municipal Code so the law finally reflects the documented policy reversal and will of the town. Respectfully, Ellery Deaton 562-743-4355 I will be unable to attend the meeting so please put this in the record as my comments. *The Coastal Commission conditions were so severe the Council reversed their decision and did not go forward. Sources and Documentation Seal Beach Municipal Code, Title 8, Chapter 8.15, § 8.15.105, “Parking Meter Zones” — references the “City of Seal Beach Parking Meter Zone Map” dated September 23, 2002, and includes Main Street, Ocean Avenue, Central Avenue, and Electric Avenue. Los Angeles Times, September 23, 2002, “Seal Beach Fears Meters Mean Charm Is Expiring.” Los Angeles Times, February 8, 2003, “Seal Beach Parking Meter Plan Idled.” California Coastal Commission Staff Report, dated December 29, 2003, for January 2004 hearing, regarding City of Seal Beach parking meter proposal. Los Angeles Times, February 15, 2004, “Time Is About to Expire on Free Parking in Seal Beach …” Los Angeles Times, March 26, 2004, “Seal Beach’s Downtown Will Retain Free Parking.” Sun Newspaper, February 8, 2024, “Committee: No paid parking on Main Street.” Sun Newspaper, June 5, 2024, “City Council receives Parking Committee recommendations.” Sun Newspaper, October 19, 2023, “Parking committee discusses survey.” Sun Newspaper, December 7, 2023, “Parking survey: no need to change.” Seal Beach city webpage, “Main Street Parking.” 1 Brandon DeCriscio From:JO8N <JO8N@proton.me> Sent:Monday, April 13, 2026 3:29 PM To:Ask City Hall; Lisa Landau; Ben Wong; Patty Senecal; Joe Kalmick; Nathan Steele; Patrick Gallegos; nghirelli@rwglaw.com; Gloria Harper; Michael Henderson; Joe Bailey; Brandon DeCriscio; hr@sealbeachca.gov; specialevents; Iris Lee; Shaun Temple; Barbara Arenado; Nicholas Nicholas; Mike Ezroj; Julia Clasby; Brian Gray; Deb Machen; Sean Low; Perla Mendoza Subject:Public Comment Seal Beach City Council Meeting 4/13/26: Fw: Can I write this grant for Seal Beach? https://bhsoac.ca.gov/connect/grant-funding-opportunities/request-for- proposal-rfp-for-innovation-partnership-fund-ipf-001/ On Monday, April 13th, 2026 at 10:27 PM, JO8N <JO8N@proton.me> wrote: ------- Forwarded Message ------- From: JO8N <JO8N@proton.me> Date: On Thursday, April 2nd, 2026 at 10:48 PM Subject: Can I write this grant for Seal Beach? https://bhsoac.ca.gov/connect/grant- funding-opportunities/request-for-proposal-rfp-for-innovation-partnership-fund-ipf-001/ To: askcityhall@sealbeachca.gov <askcityhall@sealbeachca.gov> Due May 8, $500,000-$5,000,000 Key Application Requirements To be considered for this fund, applicants’ proposed solutions must:  Be innovative by advancing new or scaled culturally competent models, practical community-centered solutions, demonstrating a clear break from the status quo, or being ready for real-world implementation;  Address the needs of BHSA Priority Populations, including underserved, low-income, and communities impacted by other behavioral health disparities;  Apply to and support county behavioral health programs, either directly or indirectly; and  Address key Cross-Cutting Elements, including Equity, Financial Sustainability, Lived Experience and Community Leadership, Alignment with Statewide Transformation Efforts, and Agility/Quality Improvement Integration. 2 JO8N Agenda Item A AGENDA STAFF REPORT DATE:April 13, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, 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 March 23, 2026. 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 March 23, 2026. Page 2 2 2 6 8 SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Patrick Gallegos Gloria D. Harper, City Clerk Patrick Gallegos, City Manager Prepared by: Brandon DeCriscio, Deputy City Clerk ATTACHMENTS: A. Minutes - Closed Session, March 23, 2026 B. Minutes - Regular Session, March 23, 2026 1 0 7 6 9 Seal Beach, California March 23, 2026 The City Council met in Closed Session at 5:30 p.m. in the City Hall Conference Room. ROLL CALL Present: Mayor Landau Council Members: Kalmick, Wong, Senecal, Steele Absent: None City Staff: Nicholas R. Ghirelli, City Attorney Patrick Gallegos, City Manager Barbara Arenado, Finance Director/ City Treasurer Iris Lee, Director of Public Works Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Landau opened oral communications. Speakers: None. Mayor Landau closed oral communications. CLOSED SESSION A. POTENTIAL THREAT TO PUBLIC SERVICES Government Code Section 54957 Consultation with: Kevin Edwards, Information Technology Manager B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Government Code §54957(b) Title: City Manager C. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) – One potential (1) case involving a threat of litigation regarding a proposed development at 4665 Lampson Avenue, Los Alamitos, CA. A record of the threats of litigation is available for inspection in the City Clerk’s office. ADJOURNMENT Mayor Landau adjourned the Closed Session meeting at 6:40 p.m. 1 0 7 6 9 Gloria D. Harper, City Clerk City of Seal Beach Approved: Lisa Landau, Mayor Attested: Gloria D. Harper, City Clerk Seal Beach, California March 23, 2026 The City Council met in Regular Session at 7:00 p.m. in the City Council Chambers. Council Member Steele led the Pledge of Allegiance. ROLL CALL Present: Mayor Landau Council Members: Kalmick, Wong, Senecal, Steele Absent: None City Staff: Nicholas R. Ghirelli, City Attorney Patrick Gallegos, City Manager Michael Henderson, Police Chief Barbara Arenado, Director of Finance Iris Lee, Director of Public Works Shaun Temple, Interim Director of Community Development Gloria D. Harper, City Clerk Bryan Mahon, Orange County Fire Authority Battalion Chief Nick Nicholas, Police Captain Mike Ezroj, Police Captain Tim Kelsey, Recreation Manager Michael Peterman, Human Resources Manager Lauren Barich, Management Analyst Jennifer Robles, Management Analyst PRESENTATIONS / RECOGNITIONS Special Presentation by Orange County Firefighters Local 3631 President Chris Hamm ORAL COMMUNICATIONS Mayor Landau opened oral communications. Speakers: John Schroeder, Charlie Kluger, Scott Fayette, Robert Jackson, Daren DeLeon, Kori DeLeon, Catherine Showalter, Chad Berlinghieri, Rod Mokhtari, Dan Brandt, and Ken Seiff, addressed the City Council. Mayor Landau closed oral communications. Two (2) Supplemental Communications were received after posting the agenda; they were distributed to the City Council and made available to the public. APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Mayor Landau pulled items F and G for separate consideration. 1 0 7 7 0 Council Member Kalmick moved, second by Mayor Pro Tem Wong, to approve the agenda. AYES: Kalmick, Senecal, Steele, Wong, Landau 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 three (3) items on the posted agenda. All five (5) Council Members were present, and no reportable action was taken. Additionally, City Attorney Ghirelli announced that the developer for the Lampson Park Place project has informed the City that they are working to connect to the Rossmoor/ Los Alamitos Area Sewer District but still desire to connect to the City’s sewer system. He noted that the City has initiated a sewer impact study. CITY MANAGER REPORT City Manager Gallegos reported his attendance at the Orange County Fire Authority (OCFA) Open House, the Seal Beach Farmer’s Market, and the League of California Cities Orange County Division meeting. COUNCIL COMMENTS Council Member Steele reported his attendance at the Orange County Older Adult Advisory Commission (OCOAAC) meeting, the Orange County Mosquito and Vector Control District meeting, the League of California Cities Orange County Division meeting, Nashville on the Coast Grand Opening, Coffee with the Chief, and the Seal Beach Farmer’s Market. Council Member Kalmick reported his attendance at Nashville on the Coast Grand Opening, the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy meeting, the Watershed Conservation Authority Board meeting, the Seal Beach Farmers Market, and Coffee with the Chief. Additionally, Council Member Kalmick acknowledged the passing of long-time Seal Beach resident Phil Bush. Council Member Senecal thanked the Seal Beach Lions Club for their service in College Park East regarding the overgown lawn. Additionally, she acknowledged the concerns raised by College Park East residents 1 0 7 7 0 regarding the Lampson Park Place Project. Finally, she reported her attendance at the League of California Cities 2026 Annual Conference, and Nashville on the Coast Grand Opening. Mayor Pro Tem Wong reported his attendance at the Seal Beach City Rotary Luncheon, Nashville on the Coast Grand Opening, the Yakult Probiotic Factory Tour, the CalChamber Roundtable Network Best Practices Zoom meeting, the Chamber of Commerce meeting, and the Americana Awards. Additionally, Mayor Pro Tem Wong requested that a discussion on the Haynes Generating Station Recycled Water Pipeline Project be agendized for a future meeting. Mayor Landau announced her attendance at the Seal Beach City Rotary Luncheon, and the Memorial Bench unveiling for former Planning Commissioner Richard Coles. Additionally, she congratulated Teri Young for being recognized by Senator Strickland as a 2026 Woman of Distinction. COUNCIL ITEMS There were no Council Items. CONSENT CALENDAR Mayor Pro Tem Wong moved, second by Council Member Senecal to approve the recommended actions on the consent calendar with the exception of Items F and G. 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 March 9, 2026. B. Demand on City Treasury (Fiscal Year 2026) - Ratification. C. Monthly Investment Report (March 23, 2026) - Receive and file. D. 2025 Annual Housing Element Progress Report - That the City Council: 1. Receive and file the 2025 General Plan Annual Progress Report; and, 2. Authorize staff to submit the Annual Progress Report to the California Department of Housing and Community Development and the Governor’s Office of Land Use and Climate Innovation, as required by State law. E. Approving the FY 2026-27 West Orange County Water Board Budget - That the City Council adopt Resolution 7749 approving the FY 2026-27 West Orange County Water Board Budget of $1,518,500, of which the City’s proportionate agency 1 0 7 7 0 contribution is $19,091. F. City Council Appointments to the Citizen-Council Business First Advisory Ad- Hoc Committee - It is recommended that the City Council ratify the appointments to the Citizen-Council Business First Advisory Ad-Hoc Committee: 1) Kori DeLeon appointed by Council Member Kalmick, 2) Peter Magalhaes appointed by Council Member Senecal, 3) Woody Woodruff appointed by Council Member Steele, 4) Steven Riggs appointed by Mayor Pro Tem Wong, and 5) Rosie Ritchie appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Council Member Kalmick and Mayor Pro Tem Wong. G. City Council Appointments to the Citizen-Council Olympic Advisory Ad-Hoc Committee - It is recommended that the City Council ratify the appointments to the Citizen-Council Olympic Advisory Ad-Hoc Committee: 1) Dr. Darin Detwiler and Steven Rigss appointed by Council Member Kalmick, 2) Rich Phee and Catherine Showalter appointed by Council Member Senecal, 3) Christine Bird and Margo Wheeler appointed by Council Member Steele; 4) Rick Lee and Evan Moore appointed by Mayor Pro Tem Wong and 5) Lars Thorn and Sherri Drum appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Mayor Landau and Council Member Senecal. H. Approve and Authorize the Employment Agreement for the Director of Community Development - That the City Council adopt Resolution 7750: 1. Approving the Executive Employment Agreement between the City of Seal Beach and Shaun Temple as the Director of Community Development, effective March 29, 2026; and, 2. Authorizing the City Manager to execute the agreement. I. Authorize the Purchase of Equipment for Support of the Seal Beach Cable Communications Foundation Broadcast Activity from B&H Photo, Video and Pro Audio - That the City Council adopt Resolution 7751: 1. Authorizing the purchase of equipment from B&H Photo, Video and Pro Audio to support the broadcast of public television, for a not-to-exceed amount of $152,931.71; and, 2. Authorizing and directing the City Manager to approve purchase orders and any necessary related documents for the equipment purchase. The vote below is for the Consent Calendar Items. AYES: Kalmick, Senecal, Steele, Wong, Landau NOES: None ABSENT: None ABSTAIN: None Motion carried City Attorney Ghirelli provided the required oral report summarizing the full compensation for the Community Development Director position in accordance with the employment 1 0 7 7 0 agreement. ITEMS REMOVED FROM THE CONSENT CALENDAR F. City Council Appointments to the Citizen-Council Business First Advisory Ad- Hoc Committee - It is recommended that the City Council ratify the appointments to the Citizen-Council Business First Advisory Ad-Hoc Committee: 1) Kori DeLeon appointed by Council Member Kalmick, 2) Peter Magalhaes appointed by Council Member Senecal, 3) Woody Woodruff appointed by Council Member Steele, 4) Steven Riggs appointed by Mayor Pro Tem Wong, and 5) Rosie Ritchie appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Council Member Kalmick and Mayor Pro Tem Wong. Mayor Landau called upon Interim Director of Community Development Temple. Interim Director of Community Development Temple gave an overview of the staff report. Mayor Landau recommended the appointment of Nathalie Wilson in place of Woody Woodruff due to the late submission of Mr. Woodruff’s application. Mayor Landau moved, second by Council Member Senecal to ratify the appointments to the Citizen-Council Business First Advisory Ad-Hoc Committee: 1) Kori DeLeon appointed by Council Member Kalmick, 2) Peter Magalhaes appointed by Council Member Senecal, 3) Nathalie Wilson appointed by Council Member Steele, 4) Steven Riggs appointed by Mayor Pro Tem Wong, and 5) Rosie Ritchie appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Council Member Kalmick and Mayor Pro Tem Wong. AYES: Kalmick, Senecal, Steele, Wong, Landau NOES: None ABSENT: None ABSTAIN: None Motion carried G. City Council Appointments to the Citizen-Council Olympic Advisory Ad-Hoc Committee - It is recommended that the City Council ratify the appointments to the Citizen-Council Olympic Advisory Ad-Hoc Committee: 1) Dr. Darin Detwiler and Steven Rigss appointed by Council Member Kalmick, 2) Rich Phee and Catherine Showalter appointed by Council Member Senecal, 3) Christine Bird and Margo Wheeler appointed by Council Member Steele; 4) Rick Lee and Evan Moore appointed by Mayor Pro Tem Wong and 5) Lars Thorn and Sherri Drum appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Mayor Landau and Council Member Senecal. Mayor Landau recommended the appointment of Lynette Van Voris in place of Sherri Drum due to the late submission of Ms. Drum’s application. 1 0 7 7 0 Mayor Landau moved, second by Council Member Senecal to ratify the appointments to the Citizen-Council Olympic Advisory Ad-Hoc Committee: 1) Dr. Darin Detwiler and Steven Rigss appointed by Council Member Kalmick, 2) Rich Phee and Catherine Showalter appointed by Council Member Senecal, 3) Christine Bird and Margo Wheeler appointed by Council Member Steele; 4) Rick Lee and Evan Moore appointed by Mayor Pro Tem Wong and 5) Lars Thorn and Lynette Van Voris appointed by Mayor Landau. In addition to the appointments above, the Committee will include two (2) Council Members: Mayor Landau and Council Member Senecal. AYES: Kalmick, Senecal, Steele, Wong, Landau NOES: None ABSENT: None ABSTAIN: None Motion carried NEW BUSINESS K. Approving and Authorizing the Waste Infrastructure System Enterprise Agreement with the County of Orange - That the City Council adopt Resolution 7752: 1. Approving the Waste Infrastructure System Enterprise (WISE) Agreement with the County of Orange for municipal solid waste disposal rates and services; and, 2. Authorizing the City Manager, or their designee, to execute the agreement and supporting documents on behalf of the City and make minor modifications as necessary. Mayor Landau called upon Management Analyst Barich. Management Analyst Barich provided an overview of the staff report. A discussion ensued between Council Member Steele, Republic Services Municipal Sales Manager Debbie Killey, Mayor Pro Tem Wong, Management Analyst Barich, Council Member Senecal, and Public Works Director Lee. Council Member Kalmick moved, second by Council Member Steele to adopt Resolution 7752: 1. Approving the Waste Infrastructure System Enterprise (WISE) Agreement with the County of Orange for municipal solid waste disposal rates and services; and, 2. Authorizing the City Manager, or their designee, to execute the agreement and supporting documents on behalf of the City and make minor modifications as necessary. AYES: Kalmick, Senecal, Steele, Wong, Landau NOES: None ABSENT: None ABSTAIN: None Motion carried 1 0 7 7 0 PUBLIC HEARING J. Consideration of Amendments to the Zoning Code to Implement the Housing Element Relating to Farmworker Housing, Density Bonus, Minimum Unit Sizes, and Parking Standards for Studios and One-Bedroom Units - That the City Council: 1. Conduct a Public Hearing to receive input and consider the Planning Commission’s comments on proposed Ordinance 1725 amending portions of Title 11 (zoning) pertaining to farmworker housing, density bonus, minimum unit sizes, and parking standards for studios and one-bedroom units for the purpose of implementing the housing element, to fulfill state housing law; and, 2. Introduce, waive full reading, and read by title only, Ordinance 1725, an Ordinance amending portions of Title 11 (zoning) pertaining to farmworker housing, density bonus, minimum unit sizes, and parking standards for studios and one-bedroom units for the purpose of implementing the housing element, to fulfill state housing law. Mayor Landau called upon Interim Director of Community Development Temple. Interim Director of Community Development Director Temple provided an overview of the staff report. Mayor Landau opened the public hearing. Speakers: Ken Seiff, Theresa Miller, and Ellery Deaton. Mayor Landau closed the public hearing. A discussion ensued between City Attorney Ghirelli, Interim Director of Community Development Temple, Council Members Kalmick, Senecal, and Steele, and Mayor Landau. Council Member Senecal, Mayor Landau, and Council Member Steele voiced their disapproval of the item. Council Member Senecal moved, second by Mayor Landau to continue the item to a future meeting date. AYES: Kalmick, Senecal, Steele, Wong, Landau NOES: None ABSENT: None ABSTAIN: None Motion carried UNFINISHED/CONTINUED BUSINESS There was no unfinished/continued business. 1 0 7 7 0 ADJOURNMENT Mayor Landau adjourned the City Council at 9:05 p.m. to Monday, April 13, 2026, at 5:30 p.m. to meet in closed session, if deemed necessary. __________________________ Gloria D. Harper, City Clerk City of Seal Beach Approved:___________________________ Lisa Landau, Mayor Attested:____________________________ Gloria D. Harper, City Clerk Agenda Item {{item.number}} AGENDA STAFF REPORT DATE: April 13, 2026 TO: Honorable Mayor and City Council FROM: Patrick Gallegos, City Manager SUBJECT: Adoption of a Resolution Proclaiming April 19-25, 2026 as California Cities Week ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7753 proclaiming the week of April 19 through April 25, 2026 as California Cities Week. BACKGROUND AND ANALYSIS: In recognition of the vital role California’s 483 cities and towns play in delivering essential services and governance to more than 80 percent of the state’s residents, the League of California Cities has designated April 19 –25, 2026, as California Cities Week. California Cities Week recognizes the essential role of cities in residents' daily lives and promotes civic engagement, education, and participation in local government . The League of California Cities and the City of Seal Beach encourage residents, businesses, and community organizations to participate in California Cities Week activities and engage with their local government to better understand municipal services, decision-making, and opportunities for civic involvement. 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. Page 2 STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7753 proclaiming the week of April 19 through April 25, 2026 as California Cities Week. SUBMITTED, NOTED AND APPROVED BY: Patrick Gallegos Patrick Gallegos, City Manager Prepared by: Megan Bolton, Management Analyst ATTACHMENTS: A. Resolution 7753 RESOLUTION 7753 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL DECLARING SUPPORT FOR CALIFORNIA CITIES WEEK, APRIL 19-25, 2026 WHEREAS, cities first arose in California when eight municipalities incorporated in 1850 to provide essential safety and health services to a rapidly growing population following the Gold Rush, and subsequent periods of economic growth and immigration; and, WHEREAS, today, California’s 483 cities and towns vary in size and scope and serve diverse communities throughout the state, from small rural neighborhoods to large urban regions; and, WHEREAS, more than 80 percent of California’s population resides within cities and towns and relies on municipal services provided by local governments; and, WHEREAS, the California Constitution grants cities important powers, including the authority to promote and regulate public safety, raise revenue for public purposes, and operate public works to furnish residents with light, water, power, heat, transportation, and communication; and, WHEREAS, cities provide millions of Californians with essential services, including but not limited to public libraries, fire protection, law enforcement, emergency medical and disaster response, parks and recreation, childcare, community and human services, solid waste and recycling management, water and sewer services, utilities, land use planning, housing, economic development, transportation planning, street and road maintenance, and telecommunications; and, WHEREAS, cities remain transparent and accountable to the communities they serve and continue to earn the trust placed in them by local residents through responsive, accessible, and locally driven governance; and, WHEREAS, California Cities Week is an opportunity to recognize the vital role cities play in the daily lives of residents and to encourage civic engagement, education, and participation in local government. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine and order as follows: Section 1. The City Council hereby proclaims the week of April 19 through 25, 2026 as California Cities Week. Section 2. The City Council encourages residents, businesses, and community organizations to participate in California Cities Week activities and to engage with their local government to better understand municipal services, decision-making, and opportunities for civic involvement. 1 1 0 7 8 PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 13th day of April 2026 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa Landau, 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 7753 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 13th day of April 2026. Gloria D. Harper, City Clerk Agenda Item D AGENDA STAFF REPORT DATE:April 13, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Approving and Authorizing the Amended and Restated County-Wide Agreement for NPDES Stormwater Permit Implementation ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7754: 1. Approving the Amended and Restated Agreement with the County of Orange, Orange County Flood Control District and participating Orange County Cities for National Pollutant Discharge Elimination System stormwater permit implementation services; and, 2. Authorizing and directing the City Manager to execute the Agreement on behalf of the City. BACKGROUND AND ANALYSIS: The City of Seal Beach is a permittee under the Municipal Separate Storm Sewer System (MS4) permit issued by the California Regional Water Quality Control Board, Santa Ana Region. The original National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement (D90-094), which was executed in 1990 and amended in 1993 and 2002 (D02-048) (collectively referred to as Existing Agreement), established a cooperative framework for implementing the Orange County Stormwater Program to meet MS4 permit requirements and improve surface water quality. The 1990 Agreement allowed for collaboration, consistency, and cost sharing of regional compliance strategies, municipal staff training, watershed monitoring and reporting efforts, and other MS4 program elements required of each of the participating Orange County cities, County of Orange (County), and Orange County Flood Control District (District) (collectively referred to as Permittees). While the Existing Agreement has achieved many significant water quality improvements to local beaches and inland waters, state regulatory requirements issued through the MS4 permits have changed significantly since the Agreement Page 2 2 2 6 9 was last updated. Watershed-specific water quality priorities have become increasingly complex requiring targeted solutions including structural treatment projects to meet ongoing and forthcoming compliance requirements. The proposed Amended and Restated Agreement (Proposed Agreement) restates and updates the Existing Agreement to reflect current regulatory requirements, administrative practices, and programmatic needs. It continues the collaborative approach among the Permittees to implement regional stormwater management strategies, but it also provides added flexibility in designing and developing watershed-specific strategies, programs, and projects using corresponding shared cost sub-budget scales. As part of the shared cost budget approval process, the Proposed Agreement also formalizes the consultation process with the Orange County City Managers Association (OCCMA) each year, which updates and improves the existing annual budget collaboration process already implemented with OCCMA. The shared cost budget that is developed annually for this Proposed Agreement maintains the existing cost sharing formula approach based on land area and population for the unincorporated County and 34 Orange County cities, with the District contributing 10% of the overall cost. For sub-budgets allowed under this Proposed Agreement that do not apply to all the Permittees, this same cost sharing formula approach would be applied for the participating Permittees. Examples of the types of geographic areas that a sub-budget could apply include across an MS4 permit area, watershed level, or sub-watershed scales. Some of the key elements of this Proposed Agreement include: Continued designation of the County as the administrator of the regional Orange County Stormwater Program. Clarification of responsibilities for each Permittee, including compliance reporting, monitoring, and implementation of Best Management Practices (BMPs). Engagement with the OCCMA for strategic input on compliance and funding. Provides an updated collaborative review process for annual operating budgets, including allowing for new sub-budgets to be established with smaller groups of Permittees to support development of targeted water quality projects and programs. Continues the existing cost sharing formula between Permittees based on land area and population, with the District contributing 10% and the County and Cities sharing the remaining 90% for the annual operating budget countywide. Seal Beach’s proportional cost share annually includes: o NPDES program implementation – 0.62% o Santa Ana Region water quality monitoring – 0.81% Page 3 2 2 6 9 o Anaheim Bay – Huntington Harbor sub watershed – 0.87% o San Gabriel River – Coyote Creek River sub watershed – 3.51% Cost sharing formula for new sub-budgets will retain the same formula based on land area and population of the participating agencies. 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 approval of an agreement with the Permittees will not have a significant effect on the environment. LEGAL ANALYSIS: The City Attorney has reviewed and approved the Agreement and Resolution as to form. FINANCIAL IMPACT: The City’s annual financial contribution will be calculated in accordance with the Proposed Agreement. Funding will be included in the proposed FY 2026-27 budget, with anticipated participation costs estimated between $50,000 and $60,000 per year, to be funded through the Storm Drains account. Future year contributions will be incorporated into subsequent fiscal year budget proposals. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7754: 1. Approving the Amended and Restated Agreement with the County of Orange, Orange County Flood Control District and participating Orange County Cities for National Pollutant Discharge Elimination System stormwater permit implementation services; and, 2. Authorizing and directing the City Manager to execute the Agreement on behalf of the City. Page 4 2 2 6 9 SUBMITTED BY: NOTED AND APPROVED: Iris Lee Patrick Gallegos Iris Lee, Director of Public Works Patrick Gallegos, City Manager Prepared by: David Spitz, P.E. Associate Engineer ATTACHMENTS: A. Resolution 7754 B. Amended and Restated NPDES Agreement RESOLUTION 7754 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDED AND RESTATED NPDES AGREEMENT WITH COUNTY OF ORANGE, ORANGE COUNTY FLOOD CONTROL DISTRICT AND PARTICIPATING ORANGE COUNTY CITIES WHEREAS, on December 18, 1990, the City entered into a National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement (Existing Agreement) between the City of Seal Beach, the County of Orange, Flood Control District (District) and participating Orange County cities (collectively, Permittees); and, WHEREAS, on October 26, 1993, and again on June 25, 2002, the Existing Agreement was amended to account for additional permit requirements and additional permittees; and, WHEREAS, Section X of the Existing Agreement provides that the Existing Agreement may be amended by consent of a majority of the Permittees which represent a majority of the percentage contributions; and, WHEREAS, the Permittees now desire to amend and restate the Agreement (Proposed Agreement) to account for updated permit requirements. This Proposed Agreement will continue to serve as a single “umbrella” agreement between the City of Seal Beach, the District and the other Permittees; and, WHEREAS, the Proposed Agreement will continue to have an indefinite term, unless amended or terminated in accordance with the Proposed Agreement. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine and order as follows: Section 1. The City Council hereby approves the Amended and Restated Agreement with the Permittees attached as Exhibit “B” to the staff report accompanying this Resolution and 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 the Amended and Restated Agreement. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 13th day of April 2026 by the following vote: 1 1 0 6 1 AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa Landau, 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 7754 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 13th day of April 2026. Gloria D. Harper, City Clerk 1 AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM STORMWATER PERMIT IMPLEMENTATION AGREEMENT This AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM STORMWATER PERMIT IMPLEMENTATION AGREEMENT (“AGREEMENT”), for purposes of identification numbered [D02-048], and which may be alternatively referred to as the “OC Stormwater Program Implementation Agreement,” is entered into this ____ day of _________, 2026, by the County of Orange, (herein called the COUNTY), the Orange County Flood Control District (herein called DISTRICT) and the cities of Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, La Habra, La Palma, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (herein called CITIES). The COUNTY, DISTRICT, and CITIES may be referred to collectively as PERMITTEES or individually as PERMITTEE, COUNTY, DISTRICT, or CITY, respectively, in this AGREEMENT. RECITALS WHEREAS, the United States Congress in 1987, through the Water Quality Act, amended Section 402 of the Clean Water Act (33 U.S.C.A. 1342(p)) to require the United States Environmental Protection Agency (“EPA”) to promulgate regulations for permitting stormwater discharges; and WHEREAS, EPA regulations require National Pollutant Discharge Elimination System (“NPDES”) permits for discharges from a municipal separate storm sewer system (“MS4”)(herein after called MS4 permits), and further require MS4 permits to include requirements to control pollutants from stormwater discharges; and WHEREAS, in 1927, the Orange County Flood Control Act created the DISTRICT 2 to provide for the control of flood and stormwater and protect from damage from those flood or stormwater, the harbors, waterways, public highways, and property within the DISTRICT’s jurisdiction; and WHEREAS, the powers granted to the DISTRICT include the authority to regulate discharges that threaten to impact its system and carry on technical and other investigations, examinations, or tests of all kinds, making measurements, collecting data, and making analyses, studies, and inspections pertaining to water supply, control of floods, use of water, water quality, nuisance, pollution, waste, and contamination of water, both within and without the DISTRICT; and WHEREAS, the California State Water Resources Control Board (“SWRCB”), as designee of the EPA, has delegated authority to the California Regional Water Quality Control Boards-Santa Ana Region (“RWQCB-SAR”) and San Diego Region (“RWQCB-SDR”)(collectively, the RWQCBs) for administration of MS4 permits within the boundaries of their regions; and WHEREAS, the COUNTY, DISTRICT, and CITIES are PERMITTEES under MS4 permits issued by the RWQCBs; and WHEREAS, the RWQCBs have designated the COUNTY as the Principal PERMITTEE or Principal Watershed Co-permittee, as defined in the MS4 permits; and WHEREAS, the COUNTY, the DISTRICT and the CITIES previously entered into that certain agreement entitled National Pollutant Discharge Elimination System Stormwater Permit Implementation Agreement D90-094, on December 18, 1990, which was subsequently amended on October 26, 1993 by Amendment No. 1 and then on June 25, 2002 (the December 18, 1990 Agreement as Amended by Amendment No. 1 and the June 25, 2002 amendment will be referred to collectively hereinafter as the ORIGINAL AGREEMENT), to cooperatively develop, and did thereunder develop, an integrated stormwater runoff management program with the objective of fulfilling MS4 permit requirements and improving water quality in Orange County (program 3 referred to herein as the “OC Stormwater Program”); and WHEREAS, Section X of the ORIGINAL AGREEMENT provides that the ORIGINAL AGREEMENT may be amended by consent of a majority of the PERMITTEES which represent a majority of the percentage contributions as described in Section IV of the ORIGINAL AGREEMENT; and WHEREAS, continued cooperation between the CITIES, the COUNTY, and the DISTRICT to jointly implement the OC Stormwater Program to fulfill prior, new, and potential future MS4 permit requirements, to the extent feasible, is in the best interests of the CITIES, the COUNTY, and the DISTRICT; and WHEREAS, the PERMITTEES now desire to restate and amend the ORIGINAL AGREEMENT, as reflected and set forth in this AGREEMENT. NOW, THEREFORE, the PERMITTEES do mutually agree as follows: I. FILING STATUS The COUNTY, the DISTRICT, and each CITY have filed applications for MS4 permits as PERMITTEES. The COUNTY, the DISTRICT and each CITY is a PERMITTEE under each MS4 permit to which they are subject. II. INCORPORATION OF FEDERAL GUIDELINES All applicable federal and state water quality regulations and guidelines under the Federal Clean Water Act, as presently written or as changed during the term of this AGREEMENT, are hereby incorporated by reference and made a part of this AGREEMENT and take precedence over any inconsistent terms of this AGREEMENT. III. DELEGATION OF RESPONSIBILITIES The responsibilities of each of the parties shall be as follows: A. The COUNTY shall be the administrator of the OC Stormwater Program and, on a cost-shared basis, perform the following functions: 1. Annual operating budgets. a. Prepare the annual operating budget (“annual operating budget”), which shall include a work plan and associated financial plan and 4 budget. The annual operating budget is intended to provide for all programmatic functions and associated costs of the OC Stormwater Program, as outlined in this AGREEMENT and as generally described in Section V.A. Annual operating budgets and work plans may be based on RWQCB region (i.e., Santa Ana Region versus San Diego Region). The budget year shall coincide with the COUNTY's fiscal year, July 1 – June 30. b. Consult with the Stormwater Program Representatives (as defined in Section III.C.8) when preparing annual operating budgets and major program elements therein. c. A draft of the annual operating budget may be prepared for the PERMITTIES for review by February 15 each year. Annual operating budgets shall be submitted to the PERMITTEES for consideration and approval by May 15 of each year. Individual CITY approval shall be obtained from each CITY’s city manager or designee thereof by July 30 of each year. CITY manager designations for annual operating budget approval shall be provided in writing to the County and shall remain in effect until revoked in writing by the CITY’s city manager. An annual operating budget shall be deemed approved and adopted for the OC Stormwater Program by affirmative responses from PERMITTEES which represent a majority (50% or greater) of both the area and population percentage contribution as calculated in accordance with Section V.A (method for calculating approval percentage referred to as “Majority Approval”). The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V.A. d. An approved and adopted annual operating budget shall not be 5 exceeded without prior Majority Approval of the PERMITTEES. 2. Project or watershed-specific sub-budgets. a. In coordination with the PERMITTEES, prepare project-specific and/or watershed-specific budgets and associated work plans (collectively, “sub-budget(s)”) for the design of water quality projects and/or responding to RWQCB enforcement orders and/or other orders (e.g., California Water Code 13267 or 13383 orders). b. Sub-budgets shall be prepared and proposed on an as-needed basis, at the discretion of the COUNTY, or as requested by interested PERMITTEES, subject to concurrence of the COUNTY. c. Each PERMITTEE willing to participate in a sub-budget will confirm participation to the COUNTY in writing. A PERMITTEE who confirms participation in a sub-budget shall be referred to herein as “PARTICIPATING PERMITTEE(s).” Sub-budgets will be subject to unanimous approval by all PARTICIPATING PERMITTEES, except that where a Participating Permittee fails to vote to approve a proposed sub-budget, such failure shall be deemed a withdrawal from the sub-budget and the withdrawing PERMITTEE shall no longer be considered a PARTICIPATING PERMITTEE and shall have no obligation to pay for or participate in the sub-budget. d. Project elements that go beyond design (e.g., construction, operation, and maintenance) shall not be provided for in sub- budgets and, instead, are subject to separate agreement between the Participating Permittees. 3. Represent the OC Stormwater Program in reviews of documents, comments, and discussions with EPA, SWRCB, and RWQCBs and/or other resource agencies regarding MS4 permit requirements and related policies, programs, and regulations. The COUNTY shall timely notify the 6 PERMITTEES of any decision reached during these discussions that, in the determination of the County, substantially impacts the OC Stormwater Program. 4. Implement approved annual operating budgets and sub-budgets. 5. Working in collaboration with PERMITTEES, prepare and submit regional compliance reports as the Principal PERMITTEE, as required under the MS4 permits, and/or as designated in the approved workplans. 6. Implement the regional monitoring and reporting program elements from approved workplans for the MS4 permits, including, but not limited to, tasks to monitor and measure the effectiveness of Best Management Practices (“BMPs”). This may include monitoring and modeling. 7. Obtain, as may be required by the annual operating budget and/or sub- budgets approved pursuant to this AGREEMENT, professional services, including, but not limited to, scientific, engineering, environmental, economic, and/or legal consultants to provide technical assistance for the work associated with the OC Stormwater Program. This work may include, but is not limited to, the preparation of technical or economic studies, legal analysis, watershed management plans, stormwater runoff management plans, water quality improvement plans, modeling, reasonable assurance demonstrations/reasonable assurance analyses, monitoring plans, technical reports, municipal staff training activities, and the design of structural and non-structural BMPs and strategies to prevent and/or reduce pollutants in stormwater runoff. Contracts for professional services to be funded under this AGREEMENT shall be made in conformance with the COUNTY’s procurement policies, and, to the extent there is no conflict, the following: a. The COUNTY shall make efforts to stagger the date of issuance of new contracts for professional services, so that PERMITTEES may 7 better absorb increases in consultant fee rates. b. For contracts for professional services that would require approval by the Orange County Board of Supervisors (as determined within the sole discretion of the COUNTY), one Stormwater Program Representative for every two designees of the COUNTY shall be allowed to participate in any panel formed for the purpose of evaluating responses to Requests for Proposals or similar competitive solicitations submitted by potential consultants. Where any contract subject to this provision is to be extended beyond the initial term, the COUNTY shall request feedback from the Stormwater Program Representatives, regarding the consultant’s performance, prior to executing the extension. This process shall in no way impinge upon or limit the COUNTY’s discretion to enter into, amend, extend, renew, or cancel any contract for professional services for the OC Stormwater Program. c. The COUNTY shall notify the PERMITTEES of any changes in the COUNTY’s procurement policies that significantly affect the thresholds for competitive procurement, scoring, or selection processes for contract services. 8. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities within the unincorporated areas of the County, at no cost to the CITIES. 9. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities on County-owned property used for COUNTY governmental purposes (i.e., property used for governmental functions) and located within a CITY, at no cost to the CITIES. For purposes of this section, the regional facility known as Dana Point Harbor shall be considered a County- owned property used for governmental purposes. 8 a. To avoid confusion in the implementation of each party’s facility inspection programs, the COUNTY shall provide a list of those facilities, buildings and properties that it owns and are located within other jurisdictions (i.e. non-unincorporated properties) that the COUNTY has decided to monitor and regulate pursuant to this Section III.A.9. The County further agrees to notify the affected PERMITTEE of changes to the status of a facility. B. The DISTRICT shall, on a cost-shared basis, except as set forth in subparagraph 2 below: 1. Perform or cause to be performed the water quality and hydrographic monitoring for compliance with MS4 permits and/or in accordance with RWQCB-approved monitoring plans and/or in the approved workplans. 2. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities located on District-owned and controlled property that is used for governmental purposes, at no cost to the CITIES. 3. Undertake or cause to be undertaken all activities required of the CITIES in Section III.C and applicable to the District. C. The CITIES, at no cost to the Counties and the District, shall: 1. Implement a facility inspection program for its MS4 facilities, as required by the MS4 permit(s) and within the jurisdictional boundaries of that CITY. 2. Submit to the COUNTY storm drain system maps and/or data describing the type and location of its MS4 facilities with periodic revisions that reflect any modifications made as a result of land development/redevelopment. If possible, information shall be submitted as geographical information system (“GIS”) data. 3. Support the COUNTY in the preparation of watershed characterizations and catchment prioritization efforts, including, but not limited to, by: 9 a. Identifying applicable zoning and land use designations. b. Identifying areas where sources of specific pollutants are known. 4. Upon COUNTY request, review, comment on, consider approval of, and, if approved, implement regional strategies to prevent and reduce pollutants in stormwater runoff. 5. Implement an illegal discharge detection and elimination program as required by the MS4 permit(s) to which the CITY is subject. Demonstrate adequate legal authority to control discharges to its MS4 facilities as may be required by the relevant MS4 permit(s) to which the CITY is subject. 6. Provide, as requested by the COUNTY, copies of the CITY’s jurisdictional reports, data, and any other information (in formats requested by the COUNTY, where such formats are reasonably available) to satisfy requirements in MS4 permits or other orders issued by a Regional Board or the State Board, to which the CITY is subject, provided the CITY has not otherwise challenged such order, and such challenge has not been resolved. 7. Participate in meetings convened by the COUNTY and respond to requests for information from the COUNTY, intended to obtain PERMITTEE input on matters related to this AGREEMENT and the implementation of the OC Stormwater Program. 8. Designate primary and secondary Stormwater Program Representative for matters related to this AGREEMENT and the implementation of the OC Stormwater Program. Designations shall be made by each CITY’s city manager, or designee, in writing to the COUNTY. Each designation shall remain in effect until revoked by the CITY’s city manager or designee. Stormwater Program Representatives are intended to provide subject matter input and facilitate communication between the COUNTY and each CITY. For purposes of this AGREEMENT, a Stormwater Program 10 Representative will not be deemed to have the authority to approve annual operating budgets on behalf of a CITY, as required in Section III.A.1, unless expressly stated in the written designation provided to the COUNTY. D. In the unincorporated areas of the COUNTY, the COUNTY shall, at no cost to the CITIES or the DISTRICT, undertake or cause to be undertaken all activities required above of the CITIES in Section III.C that are not responsibilities of the DISTRICT as outlined in Section III.B. IV. Orange County City Manager Association Engagement A. In lieu of the activities of the Technical Advisory Committee under the ORIGINAL AGREEMENT, the COUNTY shall endeavor to create a working relationship with the Orange County City Manager Association (“OCCMA”) or a sub-group thereof, to address issues such as MS4 permit requirements, MS4 permit compliance methods, and funding needs and strategies to facilitate regional and/or watershed-based, multi-jurisdictional project efforts. B. At its discretion, the COUNTY, in coordination with the PERMITTEES as set forth in this AGREEMENT, may implement recommendations (or parts thereof) that OCCMA may give on OC Stormwater Program matters, including, but not limited to, potential strategies for compliance with current and anticipated future MS4 permit requirements; funding strategies and options for MS4 permit compliance efforts; and OC Stormwater Program budgeting. Recommendations that would result in unbudgeted costs shall be subject to Majority Approval of the PERMITTEES pursuant to III.A.1.d. C. Under no circumstances shall this Section be interpreted as a replacement or substitute for any other responsibility of CITIES or the COUNTY under this Agreement. At the COUNTY’s discretion, the Director of OC Public Works may enter into a memorandum of understanding with OCCMA to facilitate 11 procedures for OCCMA engagement under this Section. Under no circumstances shall this provision be interpreted to require any written agreement between the COUNTY and OCCMA. V. PROGRAM COSTS A. Annual Operating Costs. Where not otherwise funded, the annual operating budget, including all costs of equipment, goods, COUNTY services (including, but not limited to, applicable COUNTY and COUNTY’S departmental overhead), and all professional services costs incurred by the COUNTY, and any cost of the MS4 permits, as determined by the COUNTY in its role as administrator of the OC Stormwater Program, shall be a shared cost and allocated among the COUNTY, DISTRICT, and CITIES, and paid for as follows: Participants Percentage Contribution DISTRICT 10 CITIES + COUNTY 90 The individual percentage contributions from each CITY and the COUNTY shall be functions of their respective dry land areas and population relative to those of the entire County of Orange. Each area shall be calculated as one-half of the sum of the area and population fractions, multiplied by 90%. National forests, state parks, airports, landfills, oceans, harbors, tidal bays, and active military installations shall be excluded from area calculations (Exhibit A-1). The contribution of the COUNTY shall be calculated from unincorporated areas and their respective populations. Should any external or alternative sources of funding become available, those funds may be directly applied to the appropriate budget(s) before the shared cost percentages are applied to the PERMITTTEES or credited to a subsequent budget. 12 Share in percent for jurisdiction #1= {(X1/Xtot) + (Y1/Ytot)}/2 x (90) X = area Y = population tot = total population or area 90 = total percentage excluding the DISTRICT’s contribution The percentage share shall be calculated by the COUNTY from population and area data. The population data shall be the most recent annual population estimates produced by the California Department of Finance, and area is based on the most recent OC Public Works survey data available to the COUNTY. Percentage share calculations shall be updated by May of each budget year for the budget year following and shall be included in annual operating budget proposals. Annual operating budget proposals shall be prepared based on the following percentage share computation methods, as applicable, and subject to exclusions in Exhibit A-1: 1. Countywide costs will be calculated as described in the process and formula above and subject to Exhibit A-1 for the entire group of PERMITTEES. 2. Regional costs, specific to only one RWQCB permit (Santa Ana Region and San Diego Region), will be calculated based on the process and formula above for PERMITTEES within the respective permit geographic area. For PERMITTEES that have jurisdiction in both permit regions, the regional costs will be based on the land area and prorated population for that permit geographic area. 3. Sub-budgets shall be based on the PARTICIPATING PERMITTEES and their corresponding area and prorated population total within the geographic area subject to the specific sub-budget. 4. In the event of a regulatory directive issued to PERMITTEES requiring amendment of any approved budget, the COUNTY shall provide immediate 13 notice to the included PERMITTEES and hold discussions with respect to responding to the directive and funding the immediate response. Such budget amendments shall be subject to the Majority Approval referenced in Section III.A.1.d. 5. If at any time during a budget year costs exceed the sum of the deposits for any approved budget, and prior Majority Approval for such exceedance has been obtained, the COUNTY shall submit invoices to the involved PERMITTEES to recover the deficit. The share for each PERMITTEE shall be prorated according to the formula that was initially used to apportion budget costs. Each CITY shall pay the invoice within 45 calendar days of the billing date. 6. If at any time costs exceed the sum of the deposits for any approved budget, the COUNTY may propose a budget increase and request payment by the PERMITTEES, and PERMITTEES shall pay such amount, provided the budget increase is approved in accordance with sections III.A.1.c-d or III.A.2.c of this Agreement, as may be applicable. Until such approval is obtained and sufficient deposits received, the COUNTY may, at its sole discretion, cease carrying out approved budget components so as to limit or not incur costs in excess of deposits. Nothing in this AGREEMENT shall be construed as requiring PERMITTEES to approve budget increases. 7. The COUNTY shall prepare a budget year-end accounting within 120 calendar days of the end of the budget year and present the same to the involved PERMITTEES for review. If the budget year-end accounting results in the sum of the deposits exceeding costs (net of interest earnings), the excess deposits shall carry forward to reduce the obligation of the PERMITTEES for the following budget year and prorated to the CITIES consistent with the cost-sharing population and area data 14 calculation above. 8. The COUNTY shall invoice each CITY for its annual share of each approved budget by November 30 of each budget year. Each CITY shall pay their deposit(s) within 45 calendar days of the billing date or within 45 calendar days of November 30, whichever is later. Each CITY’S deposit(s) shall be based on their prorated share(s) of the approved budget(s), reduced for any carry forward amount identified in the prior budget year-end accounting. 9. The COUNTY shall hold each CITY’s annual share of each approved budget in interest-bearing accounts and credit interest earned on each CITY’s annual share against each CITY’s share of the approved budget costs. The COUNTY shall maintain records regarding interest earned and credited on each CITY’s annual share and provide the same to the CITIES within 120 calendar days of the end of the budget year. 10. Upon termination of this AGREEMENT, a final accounting shall be performed by the COUNTY and presented to the PERMITTEES for review. If the sum of the deposits exceeds the costs, the COUNTY shall reimburse to each CITY its prorated share of the excess, within 120 calendar days of the final accounting. VI. LIFE OF THE AGREEMENT The term of this AGREEMENT shall be indefinite, unless amended or terminated in accordance with this AGREEMENT. VII. ADDITIONAL PARTIES Any CITY which becomes incorporated after the effective date of this AGREEMENT, or requests to become a party to this AGREEMENT after previously withdrawing pursuant to Section VIII, shall be eligible to become a party to this AGREEMENT, subject to Majority Approval. In approving adding additional cities to this AGREEMENT, the PERMITTEES may 15 require such conditions of the added cities as they determine necessary or advantageous. The date of initiation, for determining costs for newly incorporated cities, shall be the date of incorporation. The costs for adding additional cities to this AGREEMENT and OC Stormwater Program including, but not limited to, permit and processing fees, as well as administrative costs incurred by the COUNTY and costs to reimburse the existing PERMITTEES for unreimbursed costs related to a previous withdrawal (if applicable), shall be calculated by the COUNTY, approved by Majority Approval of the PERMITTEES and, thereafter, invoiced by the COUNTY and paid by the added city(ies) within 45 calendar days of the billing date. Monies to be reimbursed to the existing PERMITTEES shall carry forward to reduce the billings for the following budget year. VIII. WITHDRAWAL FROM THE AGREEMENT A CITY may withdraw from this AGREEMENT by providing at least 60 calendar days written notice to the COUNTY. The COUNTY shall notify the PERMITTEES within 10 business days of receipt of any withdrawal notice. Neither the COUNTY nor any PERMITTEE shall be responsible for advising the withdrawing CITY of the legal, regulatory, or programmatic effects of withdrawing, nor have any continuing responsibility to the withdrawing CITY upon the effective date of the withdrawal. The withdrawing CITY shall be solely responsible for any costs the withdrawing CITY may incur related to its withdrawal, including, but not limited to, penalties assessed by RWQCBs, and or other resource agencies (e.g., EPA, CDFW, etc.) in connection with or related to its withdrawal. In addition, withdrawal shall constitute forfeiture of any deposits on hand from the withdrawing CITY, for the budget year in which the withdrawal is effective. If the effective date of a withdrawal is within 60 calendar days of the beginning of any budget year, the withdrawing CITY shall be responsible for paying its annual 16 share for the upcoming budget year as if it were still a PERMITTEE participating in this AGREEMENT but shall be eligible to receive a credit for any prospective carry forward amount of such annual share as may be contemplated by this AGREEMENT. The cost allocations to the remaining PERMITTEES participating in this AGREEMENT shall be recalculated and collected and/or credited as necessary in the budget year following the effective date of the withdrawal. IX. NON-COMPLIANCE WITH PERMIT OR ORDER REQUIREMENTS Each PERMITTEE shall remain solely responsible for its own acts and omissions with respect to compliance with requirements of an MS4 permit or other order of the RWQCBs or SWRCB to which it may be subject, and nothing herein shall be deemed to waive, release, or transfer any such responsibility to any other PERMITTEE. Nothing in this AGREEMENT shall be construed as an assumption by any PERMITTEE of any liability or obligation of another PERMITTEE, whether past, present, or future. X. LEGAL ACTION/ COSTS/ ATTORNEY FEES In the event of legal action to enforce any provision of this AGREEMENT, each party shall bear its own attorneys’ fees and costs, and no party shall seek to recover the same from any other party through litigation or other legal proceedings. XI. AMENDMENTS TO THE AGREEMENT This AGREEMENT may be amended with Majority Approval. The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V. No amendment to this AGREEMENT shall be effective unless it is in writing and signed by the duly authorized representatives of the COUNTY and the required Majority Approval of PERMITTEES. XII. NOTICES 17 All notices required under Section VIII shall be deemed duly given if delivered by hand (with written confirmation of receipt); via electronic mail (with confirmation of transmission); or three (3) days after deposit in the U.S. Mail, postage prepaid. XIII. GOVERNING LAW This AGREEMENT shall be governed and construed in accordance with laws of the State of California. If any provision or provisions of this AGREEMENT is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not any way be affected or impaired hereby. XIV. CONSENT TO BREACH NOT WAIVER No term or provision hereof shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the duly authorized representative of the PERMITTEE to have waived or consented. Any consent by any PERMITTEE to, or waiver of, a breach by the other, whether express or implied, shall not constitute a consent to, waiver of, or excuse for any other different or subsequent breach. XV. APPLICABILITY OF PRIOR AGREEMENTS This AGREEMENT restates and amends the provisions in prior agreements and constitutes the entire AGREEMENT between the PERMITTEES with respect to the subject matter. All prior agreements, representations, statements, negotiations, and undertakings are superseded hereby. XVI. EXECUTION OF THE AGREEMENT This AGREEMENT may be executed in counterparts, and the signed counterparts shall constitute a single instrument. The parties agree that this AGREEMENT may be executed and delivered by electronic means, including via email or electronic signature platforms (e.g., DocuSign, Adobe Sign), and that such electronic signatures shall be deemed to have the same legal 18 effect as original signatures. Each party agrees that electronically signed documents shall be valid, enforceable, and admissible in any legal proceeding to the same extent as a manually signed original. XVII. NO WAIVER OF PRIVILEGE AND/OR WORK PRODUCTION PROTECTION Notwithstanding anything in this Agreement to the contrary, nothing in this AGREEMENT shall require a party to release or provide information (including any reports, communications, data, etc.) that has been deemed by that party to be subject to the attorney-client privilege, attorney work product doctrine, or any other relevant privilege and protection, including, but not limited to, any reports or information generated by a party’s consultant that was prepared in consultation with, or at the direction of, such party’s attorney or counsel of record. Nothing in this AGREEMENT shall prohibit the parties hereto from entering into future agreements, including joint defense agreements, common interest agreements, or other similar agreements to share such privileged or protected information subject to the terms and conditions of such an agreement. 19 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the dates opposite their respective signatures: ORANGE COUNTY FLOOD CONTROL DISTRICT A body corporate and politic By Chairman of the Board of Supervisors COUNTY OF ORANGE A body corporate and politic Date: By Chairman of the Board of Supervisors SIGNED AND CERTIFIED THAT A COPY OF THIS AGREEMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Date: By ROBIN STIELER Clerk of the Board of Supervisors of Orange County, California APPROVED AS TO FORM COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA By Julia Woo, Senior Deputy Date: /// /// /// 20 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF ALISO VIEJO Date: ______ ATTEST: City Clerk 21 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF ANAHEIM Date: ______ ATTEST: City Clerk 22 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF BREA Date: _________________________ ATTEST: City Clerk 23 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF BUENA PARK Date: ______ ATTEST: City Clerk 24 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF COSTA MESA Date: _____ ATTEST: City Clerk 25 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF CYPRESS Date: ______ ATTEST: City Clerk 26 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF DANA POINT Date: ______ ATTEST: City Clerk 27 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF FOUNTAIN VALLEY Date: ______ ATTEST: City Clerk 28 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF FULLERTON Date: ______ ATTEST: City Clerk 29 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF GARDEN GROVE Date: ______ ATTEST: City Clerk 30 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF HUNTINGTON BEACH Date: ______ ATTEST: City Clerk 31 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF IRVINE Date: ______ ATTEST: City Clerk 32 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF LA HABRA Date: ______ ATTEST: City Clerk 33 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF LA PALMA Date: ______ ATTEST: City Clerk 34 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF LAGUNA BEACH Date: ______ ATTEST: City Clerk 35 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF LAGUNA HILLS Date: ______ ATTEST: City Clerk 36 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF LAGUNA NIGUEL Date: ______ ATTEST: City Clerk 37 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF LAGUNA WOODS Date: ______ ATTEST: City Clerk 38 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF LAKE FOREST Date: ______ ATTEST: City Clerk 39 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF LOS ALAMITOS Date: ______ ATTEST: City Clerk 40 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF MISSION VIEJO Date: ______ ATTEST: City Clerk 41 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF NEWPORT BEACH Date: ______ ATTEST: City Clerk 42 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF ORANGE Date: ______ ATTEST: City Clerk 43 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF PLACENTIA Date: ______ ATTEST: City Clerk 44 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF RANCHO SANTA MARGARITA Date: ______ ATTEST: City Clerk 45 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF SAN CLEMENTE Date: _____ ATTEST: City Clerk 46 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF SAN JUAN CAPISTRANO Date: _____ ATTEST: City Clerk 47 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF SANTA ANA Date: ______ ATTEST: City Clerk 49 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF STANTON Date: ______ ATTEST: City Clerk 50 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF TUSTIN Date: ______ ATTEST: City Clerk 51 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF VILLA PARK Date: ______ ATTEST: City Clerk 52 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF WESTMINSTER Date: ______ ATTEST: City Clerk 53 By: Mayor APPROVED AS TO FORM: City Attorney CITY OF YORBA LINDA Date: ______ ATTEST: City Clerk 54 EXHIBIT A - 1 DRY LAND AREA DEDUCTED FROM JURISDICTIONS Landfills Jurisdiction Olinda County Santiago County Prima Deschecha County Bee Canyon County Coyote Canyon County State Parks Bolsa Chica State Beach* Huntington Beach Chino Hills State Park County Corona Del Mar State Beach Newport Beach Crystal Cove State Park** County Doheny State Beach Dana Point Huntington State Beach Huntington Beach San Clemente State Beach San Clemente Airports Fullerton Fullerton John Wayne County Military facilities Joint Forces Training Base - Los Alamitos Los Alamitos Former MCAS Tustin*** Tustin Seal Beach Naval Weapons Station**** Seal Beach National Forests Cleveland National Forest County *Includes Bolsa Chica Ecological Preserve **Includes Laguna Laurel Ecological Preserve ***Active military areas ****Includes Seal Beach National Wildlife Refuge Agenda Item E AGENDA STAFF REPORT DATE:April 13, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Michael Henderson, Chief of Police SUBJECT:Consideration of an Agreement with Flock Group, Inc. for the Installation and Use of Fixed Automated License Plate Reader Cameras at Certain Locations Near the 405 Freeway and 22 Freeway Ramps ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7755 approving and authorizing the City Manager or his designee to enter into a three-year agreement with Flock Group, Inc. (Flock) for the installation of additional Automated License Plate Reader (ALPR) cameras in the City of Seal Beach near the 405 and 22 freeways, with a not-to-exceed amount of $54,150. BACKGROUND AND ANALYSIS: In 2018, the City of Seal Beach and the Seal Beach Police Department began researching fixed License Plate Reader (LPR) camera technology used by law enforcement. Former Councilmember Thomas Moore contacted the Police Department about Flock Safety, a LPR company based out of Atlanta, Georgia. In September 2018, the City Council approved an agreement with Flock Safety to install a wireless license plate reader camera, provide signage, and supply a mobile data connection that continuously uploads data to the cloud for immediate access, along with software capable of analyzing the captured data. Since 2018, this camera has assisted in locating reported missing persons and aided in identifying suspect vehicles and suspects involved in crimes occurring in the College Park West and Edison Park areas. The data collected is for law enforcement use only and is not shared with the general public or other prohibited entities. Retention of the data will comply with the Police Department’s existing LPR and information retention policies. College Park West has proven to be an ideal neighborhood for this technology as the tract has a single ingress and egress point. If a crime occurs or a person is reported missing, all license plates leaving the community will be captured and can Page 2 2 2 5 0 be reviewed by the Police Department’s personnel. Additionally, since 2018, the City of Seal Beach has enhanced its Automated Fixed License Plate Reader system with several Vigilant Solutions Inc. cameras at the major points of entry and exit to the community. The City seeks to install cameras in the areas of the 405 and 22 freeways. Because only Flock and Vigilant (Motorola) provide systems compatible with the City’s existing patrol and dispatch platforms, both vendors were contacted for quotes; however, Vigilant did not respond. Flock’s pricing varies based on service levels and area needs, so maintaining separate contracts provides flexibility to adjust services if operational requirements change. The City seeks to install cameras to monitor the roadways in the area of the freeway on-and-off ramps, specifically the 405 and 22 freeways. This agreement is to install cameras in the freeway entrance and exit area to monitor the roadways. The contract term for this area is three (3) years with a fixed installation rate and fixed annual subscription during the term, after which it will be subject to renewal separately from other City of Seal Beach and Flock agreements. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed the proposed agreement and approved as to form. FINANCIAL IMPACT: The cost associated with installing the new ALPR cameras, along with the three- year (36) month annual subscription will not exceed $54,150.00. $19,350 will be utilized from the asset forfeiture fund and will be absorbed within the current budget. Future years will be budgeted accordingly. Cost breakdown: - Year One camera purchase and subscription $17,400.00 o Flock Solar Bundle - $900.00 x 2 $ 1,800.00 o Professional Services fee- $ 150.00 - Year One Total $19,350.00 - Year Two Subscription Fee $17,400.00 - Year Three Subscription Fee $17,400.00 ____________________________________________________ Total Three Year (36 months) not-to-exceed: $54,150.00 Page 3 STRATEGIC PLAN: This item supports the department’s Strategic Plan goal of providing safety measures to ensure the community remains a safe place for residents and visitors. RECOMMENDATION: That the City Council adopt Resolution 7755 approving and authorizing the City Manager or his designee to enter into a three-year agreement with Flock Group, Inc.(Flock) for the installation of additional Automated License Plate Reader (ALPR) cameras in the City of Seal Beach with a not-to-exceed amount of $54,150. SUBMITTED BY: NOTED AND APPROVED: Michael Henderson Patrick Gallegos Michael Henderson, Chief of Police Patrick Gallegos, City Manager Prepared by: Michael Ezroj, Operation Bureau Captain ATTACHMENTS: A. Resolution 7755 B. Proposed Agreement RESOLUTION 7755 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AN AGREEMENT WITH FLOCK GROUP. INC. FOR AUTOMATED LICENSE PLATE READERS AT THE 405 AND 22 FREEWAY ONRAMPS WHEREAS, the Police Department proposes adding additional license plate reader cameras provided by Flock Group, Inc., in the area of the 405 and 22 freeway on and off ramps; and, WHEREAS, this technology has proven itself to be a valuable tool to assist law enforcement in the location of missing persons and identifying suspect(s) and suspect(s) vehicles related to crimes in the area. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows: Section 1. That the City Manager is hereby authorized to execute for and on behalf of the City of Seal Beach the services agreement between Flock Group, Inc. and the City of Seal Beach in the amount not to exceed $54,150.00 over three (3) years. Section 2. The City Council directs the Police Department and City staff to collect and retain data from such license plate readers in accordance with the Department’s retention and license plate reader policies, Government Code § 34090.6, and Civil Code Title 1798.90.5. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 13th day of April 2026 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa Landau, Mayor 1 0 9 9 0 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 7755 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 13th day of April 2026. Gloria D. Harper, City Clerk Flock Safety + CA - Seal Beach PD ______________ Flock Group Inc. 1170 Howell Mill Rd, Suite 210 Atlanta, GA 30318 ______________ MAIN CONTACT: Jake Sherman jake.sherman@flocksafety.com 8187467444 Quote Number: Q-187574 Expiration Date: 04/14/2026 Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B ORDER FORM This order form (“Order Form”) hereby incorporates and includes the terms of the previously executed agreement (the “Terms”) which describe and set forth the general legal terms governing the relationship (collectively, the "Agreement" ). The Terms contain, among other things, warranty disclaimers, liability limitations and use limitations. This additional services Agreement will be effective when this Order Form is executed by both Parties (the “Effective Date”) Customer: CA - Seal Beach PD Initial Term: 36 Months Legal Entity Name: CA - Seal Beach PD Renewal Term: 36 Months Accounts Payable Email: invoices@sealbeachca.gov Payment Terms: Net 30 Address: 211 8Th Street Seal Beach, California 90740 Billing Frequency: Annual Plan - First Year Invoiced at Signing. Retention Period: 30 Days Hardware and Software Products Recurring amounts over subscription term Item Cost Quantity Total Flock Safety Platform $17,400.00 Flock Safety Bundles Solar LPR Combo Bundle Included 1 Included Dual Solar LR Bundle Included 1 Included Flock Safety LPR Products Flock Safety LPR, fka Falcon Included 1 Included <# <<# < Professional Services and One Time Purchases Item Cost Quantity Total One Time Fees Flock Safety Professional Services Professional Services - Solar Bundle Implementation Fee $900.00 1 $900.00 Professional Services - Solar Bundle Implementation Fee $900.00 1 $900.00 Professional Services - Existing Infrastructure Implementation Fee $150.00 1 $150.00 Subtotal Year 1: $19,350.00 Annual Recurring Subtotal: $17,400.00 Estimated Tax: $0.00 Contract Total: $54,150.00 Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then -current term. This Order Form is subject to the Terms attached hereto and incorporated by reference. The Term for Flock Hardware shall commence upon first installation and validation, except that the Term for any Flock Hardwar e that requires self- installation shall commence upon execution of the Agreement. In the event a Customer purchases more than one t ype of Flock Hardware, the earliest Term start date shall control. In the event a Customer purchases software only, the Term shall commence upon execution of the Agre ement. Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Billing Schedule Billing Schedule Amount (USD) Year 1 At Contract Signing $19,350.00 Annual Recurring after Year 1 $17,400.00 Contract Total $54,150.00 *Tax not included Discounts Discounts Applied Amount (USD) Flock Safety Platform $0.00 Flock Safety Add-ons $0.00 Flock Safety Professional Services $0.00 Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Product and Services Description Flock Safety Platform Items Product Description Solar LPR Combo Bundle One solar-powered fixed long-range camera and one solar-powered, standard-range LPR camera on the same pole Dual Solar LR Bundle Two solar-powered fixed long-range LPR cameras on the same pole Flock Safety LPR, fka Falcon Law enforcement grade infrastructure-free (solar power + LTE) license plate recognition camera with Vehicle Fingerprint ™ technology (proprietary machine learning software) and real-time alerts for unlimited users. Solar Long-Range LPR, fka Solar Falcon LR Law enforcement grade, long range and high vehicle speed license plate recognition camera with Vehicle Fingerprint ™ technology (proprietary machine learning software) and real-time alerts for unlimited users, with LTE. Solar Power only Solar LPR, fka Solar Falcon Standard range license plate recognition camera with Vehicle Fingerprint ™ technology (proprietary machine learning software) and real-time alerts for unlimited users, with LTE Professional Services - Solar Bundle Implementation Fee One-time Professional Services engagement. Includes site and safety assessment, camera setup and testing, and shipping and handli ng in accordance with the Flock Safety Standard Implementation Service Brief. Solar Long-Range LPR, fka Solar Falcon LR Law enforcement grade, long range and high vehicle speed license plate recognition camera with Vehicle Fingerprint ™ technology (proprietary machine learning software) and real-time alerts for unlimited users, with LTE. Solar Power only Professional Services - Solar Bundle Implementation Fee One-time Professional Services engagement. Includes site and safety assessment, camera setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief. Professional Services - Existing Infrastructure Implementation Fee One-time Professional Services engagement. Includes site and safety assessment of existing vertical infrastructure location, came ra setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief. Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B By executing this Order Form, Customer represents and warrants that it has read and agrees all of Terms attached hereto. The Parties have executed this Agreement as of the dates set forth below. FLOCK GROUP, INC. Customer: CA - Seal Beach PD By: \FSSignature2\ By: \FSSignature1\ Name: \FSFullname2\ Name: \FSFullname1\ Title: \FSTitle2\ Title: \FSTitle1\ Date: \FSDateSigned2\ Date: \FSDateSigned1\ PO Number: Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Chief Legal Officer 3/24/2026 Dan Haley TERMS AND CONDITIONS 1. DEFINITIONS Certain capitalized terms, not otherwise defined herein, have the meanings set forth or cross- referenced in this Section 1. 1. 1 " Anonymized Data" means Customer Data permanently stripped of identifying details and any potential personally identifiable information, by commercially available standards which irreversibly alters data in such a way that a data subject( i. e., individual person or entity) can no longer be identified directly or indirectly, and is thereby rendered " anonymized data" as defined in ISO 25237: 2017, Sections 3. 2 and 3. 3. 1. 2 " Authorized End User( s)" means any individual employees, agents, or contractors of Customer accessing or using the Services, under the rights granted to Customer pursuant to this Agreement. 1. 3 " Customer Data" means the data, media and content provided or made accessible to Flock by Customer through the Services. For the avoidance of doubt, the Customer Data will include the Footage. 1. 4. " Customer Hardware" means the third- party camera owned or provided by Customer and any other physical elements that interact with the Embedded Software and the Web Interface to provide the Services. 1. 5 " Embedded Software" means the Flock proprietary software and/ or firmware integrated with or installed on the Flock Hardware or Customer Hardware. 1. 6 " Flock Hardware" means the Flock device( s), which may include the pole, cameras, clamps, solar panel, installation components, and any other Flock owned physical elements that interact with the Embedded Software and the Web Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Interface, to provide the Flock Services as specifically set forth in the applicable product addenda. 1. 7 " Flock/ P' means the Services, the Embedded Software, and any intellectual property or proprietary information therein or otherwise provided to Customer and/ or its Authorized End Users. Flock IP does not include Footage as defined below). 1. 8 " Flock Network End User( s)" means any user of the Flock Services that Customer authorizes access to or receives data from, pursuant to the licenses granted herein. 1. 9 " Flock Services" or Services" means the provision of Flock' s software and hardware situational awareness solution, via the Web Interface, for automatic license plate detection, alerts, audio detection, searching image records, video and sharing Footage. 1. 10 " Footage" means still images, video, audio and other data captured by the Flock Hardware or Customer Hardware in the course of and provided via the Flock Services. 1. 11 “Hotlist( s)" means a digital file containing alphanumeric license plate related information pertaining to vehicles of interest, which may include stolen vehicles, stolen vehicle license plates, vehicles owned or associated with wanted or missing person( s), vehicles suspected of being involved with criminal or terrorist activities, and other legitimate matters of concern to law enforcement. Hotlist also includes, but is not limited to, national data ( i. e., NCIC) for similar categories, license plates associated with AMBER Alerts or Missing Persons/Vulnerable Adult Alerts and includes manually entered license plate information associated with crimes that have occurred in any local jurisdiction. 1. 12 " Installation Services" means the services provided by Flock for Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B installation of Flock Services and Flock Hardware. 1. 13 " Permitted Purpose" means any legitimate law enforcement purpose, including but not limited to the awareness, prevention, and prosecution of crime, investigations, prevention of commercial harm, to the extent permitted by law. 1. 14 " Retention Period' means the time period that the Customer Data is stored within the cloud storage, as specified in the product addenda. 1. 15 " Vehicle FingerprintTM" means the unique vehicular attributes captured through Services such as: type, make, color, state registration, missing/ covered plates, bumper stickers, decals, roof racks, and bike racks. 1. 16 " Web Interface" means the website( s) or application( s) through which Customer and its Authorized End Users can access the Services. 1. 17 " Applicable Laws" means Title 1. 81 of Part 4 of Division 3 of the California Civil Code, including Section 1798. 90. 5, et seq., and the California Consumer Privacy Act, Section 1798. 100, et seq., Government Code Section 7284, et seq., and any and all other applicable local, State and federal laws and regulations. 2. SERVICES AND SUPPORT 2. 1 Provision of Access. Flock hereby grants to Customer a non- exclusive, nontransferable right to access the features and functions of the Flock Services via the Web Interface during the Term, solely for the Authorized End Users. The Footage will be available for Authorized End Users to access and download via the Web Interface the longer of: the Retention Period, period required by Customer' s records retention requirements, or State law including California Government Code Section 34090, et seq., or any period set forth in a notice of litigation hold as provided herein. Authorized End Users will be required to sign Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B up for an account and select a password and username (" User ID"). If requested by Customer, Flock will require and provide 2- step verification for any access by any user of the Services. Customer shall be responsible for all acts and omissions of Authorized End Users, and any act or omission by an Authorized End User which, including any acts or omissions of authorized End user which would constitute a breach of this agreement if undertaken by Customer. Customer shall undertake reasonable efforts to make all Authorized End Users aware of all applicable provisions of this Agreement and shall cause Authorized End Users to comply with such provisions. Flock may use the services of one or more third parties to deliver any part of the Flock Services, ( such as using a third party to host the Web Interface for cloud storage or a cell phone provider for wireless cellular coverage), provided any such third parties with access to Customer Data, maintain confidentiality of Customer Data. 2. 2 Embedded Software License. Flock grants Customer a limited, nonexclusive, non- transferable, non- sublicensable ( except to the Authorized End Users), revocable right to use the Embedded Software as it pertains to Flock Services, solely as necessary for Customer to use the Flock Services. 2. 3 Support Services. Flock shall monitor the Flock Services, and any applicable device health, in order to improve performance and functionality. Flock will use commercially reasonable efforts to respond to requests for support within forty -eight (48) hours of becoming aware of a malfunction in the Flock Services or Flock Hardware. Flock will provide Customer with reasonable technical and onsite support and maintenance services in- person, via phone or by email at support@flocksafetv.com ( such services collectively referred to as ' Support Services"). 2. 4 Upgrades to Platform. Flock may make any upgrades to system or platform Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B that it deems necessary or useful to ( i) maintain or enhance the quality or delivery of Flock' s products or services to its customers, the competitive strength of, or market for, Flock' s products or services such platform or system' s cost efficiency or performance, or (ii) to comply with applicable law. Parties understand and Flock agrees that such upgrades are necessary from time to time and will not diminish the quality of the Services or materially change any terms or conditions within this Agreement. 2. 5 Service Interruption. Services may be interrupted in the event that: ( a) Flock' s provision of the Services to Customer or any Authorized End User is prohibited by applicable law; ( b) any third- party services required in order to provide the Services are interrupted; ( c) if Flock reasonably believe Services are being used for malicious, unlawful, or otherwise unauthorized use; ( d) there is a threat or attack on any of the Flock IP by a third party; or (e) scheduled or emergency maintenance (" Service Interruption"). Flock will make commercially reasonable efforts to provide written notice of any Service Interruption to Customer, to provide updates, and to resume providing access to Flock Services as soon as reasonably possible after the event giving rise to the Service Interruption is cured. Flock will have no liability for any damage, liabilities, losses including any loss of data or profits), or any other consequences that Customer or any Authorized End User may incur as a result of an unforeseeable Service Interruption. To the extent that the Service Interruption is not caused by Customer' s direct actions or by the actions of parties under the Customer' s direction, the time will be tolled by the duration of the Service Interruption ( for any continuous suspension lasting at least one full day). For example, in the event of a Service Interruption lasting five ( 5) continuous days, Customer will receive a credit for Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B five ( 5) free days at the end of the Term. 2. 6 Service Suspension. Flock may temporarily suspend Customer' s and any Authorized End User' s access to any portion or all of the Flock IP or Flock Service if( a) there is a threat or attack on any of the Flock IP by Customer; ( b) Customer' s or any Authorized End User' s use of the Flock IP disrupts or poses a security risk to the Flock IP or any other customer or vendor of Flock; ( c) Customer or any Authorized End User is/ are using the Flock IP for fraudulent or illegal activities; (d) Customer has violated any term of this provision, including, but not limited to, utilizing Flock Services for anything other than the Permitted Purpose; or ( e) any unauthorized access to Flock Services through Customer' s account (" Service Suspension"). Customer shall not be entitled to any remedy for the Service Suspension period, including any reimbursement, tolling, or credit, unless the suspension occurred at no fault of Customer. If the Service Suspension was not caused by Customer, the Term will be tolled by the duration of the Service Suspension. 2. 7 Hazardous Conditions. Flock Services do not contemplate hazardous materials, or other hazardous conditions, including, without limit, asbestos, lead, toxic or flammable substances. In the event any such hazardous materials are discovered in the designated locations in which Flock is to perform services under this Agreement, Flock shall have the right to cease work immediately. 3. CUSTOMER OBLIGATIONS 3. 1 Customer Obligations. Flock will assist Customer Authorized End Users in the creation of a User ID. Authorized End Users agree to provide Flock with accurate, complete, and updated registration information. Authorized End Users may not select as their User ID, a name that they do not have the right to use, or any other name with the intent of impersonation. Customer and Authorized End Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Users may not transfer their account to anyone else without prior written permission of Flock. Authorized End Users shall not share their account username or password information and must protect the security of the username and password. Unless otherwise stated and defined in this Agreement, Customer shall not designate Authorized End Users for persons who are not officers, employees, or agents of Customer. Authorized End Users shall only use Customer- issued email addresses for the creation of their User ID. Customer is responsible for any Authorized End User activity associated with its account. Customer shall ensure that Customer provides Flock with up to date contact information at all times during the Term of this agreement. Customer shall be responsible for obtaining and maintaining any equipment and ancillary services needed to connect to, access or otherwise use the Flock Services. Customer shall ( at its own expense) provide Flock with reasonable access and use of Customer facilities and Customer personnel in order to enable Flock to perform the Services ( such obligations of Customer are collectively defined as ` Customer Obligations"). 3. 2 Customer Representations and Warranties. Customer represents, covenants, and warrants that Customer shall use Flock Services only in compliance with this Agreement and all Applicable Laws and regulations, including but not limited to any laws relating to the recording or sharing of data, video, photo, or audio content. 4. DATA USE AND LICENSING 4. 1 Customer Data. As between Flock and Customer, all right, title and interest in the Customer Data, belong to and are retained solely by Customer. For the term of this Agreement, Customer hereby grants to Flock a limited, nonexclusive, royalty- free, irrevocable, worldwide license to use the Customer Data Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B solely for the purpose of performing all acts as may be necessary for Flock to lawfully provide the Flock Services to Customer. Flock does not own and shall not sell Customer Data. Notwithstanding any other provision herein, Flock shall: ( a) keep and maintain Customer Data and Customer Generated Data ( collectively, " Data", sometimes in this Section 4) in strict confidence, using such degree of care as is appropriate and consistent with its obligations as further described in this Agreement and applicable law to avoid unauthorized access, use, disclosure, or loss; ( b) use and disclose the Data solely and exclusively for the purpose of providing the Services, such use and disclosure being in accordance with this Agreement, and Applicable Laws; ( c) allow access to the Data only to Customer, Authorized End Users, and those employees or agents of Flock who are directly involved with and responsible for providing the Services, and/ or third parties bound in writing to maintain confidentiality of the Data; and, ( d) not use, sell, rent, transfer, distribute, or otherwise disclose or make available any of the Data for Flock' s own purposes or for the benefit of anyone other than Customer without Customer' s prior written consent, or as otherwise provided herein. 4. 2 Customer Generated Data. Flock may provide Customer with the opportunity to post, upload, display, publish, distribute, transmit, broadcast, or otherwise make available, messages, text, illustrations, files, images, graphics, photos, comments, sounds, music, videos, information, content, ratings, reviews, data, questions, suggestions, or other information or materials produced by Customer (` Customer Generated Data"). Customer shall retain whatever legally cognizable right, title, and interest in Customer Generated Data. Customer understands and acknowledges that Flock has no obligation to monitor or enforce Customer' s intellectual property rights of Customer Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Generated Data. For the term of this Agreement, Customer grants Flock a nonexclusive, irrevocable, worldwide, royalty- free, license to use the Customer Generated Data for the purpose of providing Flock Services. Flock does not own and shall not sell, share or disseminate Customer Generated Data, except as expressly authorized herein.. 4. 3 Anonymized Data. Flock shall have the right to collect, analyze, and anonymize Customer Data and Customer Generated Data to the extent such anonymization renders the data non- identifiable to create Anonymized Data, as defined herein, to use and perform the Services and related systems and technologies, including the training of machine learning algorithms. Customer hereby grants Flock a non- exclusive, worldwide, perpetual, royalty- free right to use and distribute such Anonymized Data to improve and enhance the Services and for other development, diagnostic and corrective purposes, and other Flock offerings. Parties understand that the aforementioned license is required for continuity of Services. Flock does not own and shall not sell Anonymized Data. 4.4 Security of Customer Data. In storing, handling, transmitting, and/ or accessing Customer Data and Customer Generated Data, Flock shall incorporate a comprehensive set of data security protocols comprising a data privacy and information security program, including physical, technical, administrative, and organizational safeguards, that comply with Applicable Laws, to protect Data at rest, Data in use, and Data in transit, and that, at minimum: ( i) control access to Data; ( ii) include regular audits, including threat assessments, to evaluate susceptibility to unauthorized access; ( iii) provide regular maintenance and updating to ensure current cyber threats are identified and proactive defensive measures are undertaken; ( iv) meet all current rules, regulations, policies, and Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B standards of the Criminal Justice Information Services, Division of the Federal Bureau of Investigation ( CJIS), including ensuring that persons having access to Data are free of criminal history or any other security threat that would otherwise disqualify any such person from accessing confidential criminal justice information under current rules, regulations, policies, and standards of the CJIS; and ( v) provide for the physical and environmental protection of all Data. In the event of any act, error or omission, negligence, misconduct, or breach that permits any unauthorized access to, or that compromises or is suspected to compromise the security, confidentiality, or integrity of Data , or the physical, technical, administrative, or organizational safeguards put in place by Flock that relate to the protection of the security, confidentiality, or integrity of that Data, Flock shall, as applicable: (a) notify Customer as soon as practicable or as required by Applicable Laws, but no later than forty- eight ( 48) hours of becoming aware of such occurrence; ( b) cooperate with Customer in investigating the occurrence, including making available all relevant records, logs, files, data reporting, and other materials required to comply with Applicable Laws; ( c) in the case of personally identifiable information, provide all notifications to individuals required by Applicable Laws; ( d) perform or take any other actions required to comply with Applicable Law as a result of the occurrence; and ( e) provide to Customer a detailed plan within ten ( 10) calendar days of the occurrence describing the measures Flock will undertake to prevent a future occurrence. To the maximum extent permitted by law, Flock shall indemnify, defend and pay reasonable attorneys ' fees and costs, and hold Customer and Customer' s elected officials, officers, employees, and agents free and harmless, with respect to any and all claims and liabilities to the extent arising out of, related to, or incurred in connection with any unauthorized access to or theft of Data, including Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B any and all related bank charges in the case of identity theft, to the extent arising out of the negligence or willful misconduct of Flock or any of its agents ; provided, however, that Flock' s liability for "cyber theft" shall not exceed the limits of Flock' s cyber liability policy required herein. All cloud based storage shall comply with ISO/ IEC 27001 - 27018, as applicable, or successor standards thereto, and shall be provided solely within the continental United States and on computing and data storage devices residing therein, and all such locations shall be disclosed to Customer promptly upon request. Customer shall have full and complete access to, and ability to download, any Data 24 hours per day, 7 days per week, except during authorized periods of maintenance by Flock or during a Service Suspension not due to the fault of Customer. Customer may at any time, provide Flock with a written " notice of litigation hold", therein requiring Flock to isolate and maintain any Customer Data that Flock has access to and that becomes relevant to any criminal or civil action or discovery process involving Customer. 5. CONFIDENTIALITY; DISCLOSURES 5. 1 Confidentiality. To the extent required by any applicable public records requests, each Party ( the " Receiving Party') understands that the other Party the " Disclosing Party') has disclosed or may disclose business, technical or financial information relating to the Disclosing Party' s business ( hereinafter referred to as " Proprietary Information" of the Disclosing Party). Proprietary Information includes non- public information provided by the Disclosing Party to the Receiving Party regarding features, functionality, and performance of this Agreement. For avoidance of doubt, all Customer Data and Customer Generated Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Data is Proprietary Information. The Receiving Party agrees: ( i) to take the same security precautions to protect against disclosure or unauthorized use of such Proprietary Information that the Party takes with its own proprietary information, but in no event less than commercially reasonable precautions, and ( ii) not to use except in performance of the Services or as otherwise permitted herein) or divulge to any third person any such Proprietary Information. The Disclosing Party agrees that the foregoing shall not apply with respect to any information that the Receiving Party can document (a) is or becomes generally available to the public; or ( b) was in its possession or known by it prior to receipt from the Disclosing Party; or ( c) was rightfully disclosed to it without restriction by a third party; or ( d) was independently developed without use of any Proprietary Information of the Disclosing Party. Nothing in this Agreement will prevent the Receiving Party from disclosing the Proprietary Information pursuant to any judicial or governmental order, subpoena, or the California Public Records Act, provided that the Receiving Party gives the Disclosing Party reasonable prior notice of such disclosure to contest such order or other compelled disclosure. At the termination of this Agreement, all Proprietary Information will be returned to the Disclosing Party, destroyed or erased ( if recorded on an erasable storage medium), together with any copies thereof, when no longer needed for the purposes above, or upon request from the Disclosing Party, and in any case upon termination of the Agreement. Notwithstanding any termination, all confidentiality obligations as to Proprietary Information that is asserted to be a trade secret shall continue in perpetuity or until such information is no longer trade secret. 5. 2 Usage Restrictions on Flock IP. Flock and its licensors retain all right, title Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B and interest in and to the Flock IP and its components, and Customer acknowledges that it neither owns nor acquires any additional rights in and to the Flock IP not expressly granted by this Agreement. Customer further acknowledges that Flock retains the right to use the Flock IP for any purpose in Flock' s sole discretion. Customer and Authorized End Users shall not: ( i) copy or duplicate any of the Flock IP; ( ii) decompile, disassemble, reverse engineer, or otherwise attempt to obtain or perceive the source code from which any software component of any of the Flock IP is compiled or interpreted, or apply any other process or procedure to derive the source code of any software included in the Flock IP; ( iii) attempt to modify, alter, tamper with or repair any of the Flock IP, or attempt to create any derivative product from any of the foregoing; ( iv) interfere or attempt to interfere in any manner with the functionality or proper working of any of the Flock IP; ( v) remove, obscure, or alter any notice of any intellectual property or proprietary right appearing on or contained within the Flock Services or Flock IP; ( vi) use the Flock Services for anything other than the Permitted Purpose; or ( vii) assign, sublicense, sell, resell, lease, rent, or otherwise transfer, convey, pledge as security, or otherwise encumber, Customer' s rights. There are no implied rights. 5. 3 Disclosure of Footage. Subject to and during the Retention Period, and in compliance with all Applicable Laws, Flock may access, use, preserve and/ or disclose the Footage to law enforcement authorities, government officials, and/ or third parties, if legally required to do so or if Flock has a good faith belief that such access, use, preservation or disclosure is reasonably necessary to comply with a court order, subpoena, Applicable Laws, or to enforce this Agreement, or detect, prevent or otherwise address an actual security breach, crime, or emergency situations where there is an actual threat to public health or safety. Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B 6. PAYMENT OF FEES 6. 1 Billing and Payment of Fees. Customer shall pay the fees set forth in the applicable Order Form based on the billing structure and payment terms as indicated in the Order Form. If Customer believes that Flock has billed Customer incorrectly, Customer shall use reasonable efforts to contact Flock no later than thirty ( 30) days after the closing date on the first invoice in which the error or problem appeared to receive an adjustment or credit. Customer acknowledges and agrees that a failure to utilize reasonable efforts to contact Flock within this period will serve as a waiver of any claim. If any undisputed fee is more than thirty ( 30) days overdue, Flock may, without limiting its other rights and remedies, suspend delivery of its service until such undisputed invoice is paid in full. Flock shall provide at least thirty ( 30) days ' prior written notice to Customer of the payment delinquency before exercising any suspension right. Notwithstanding any other provision herein, Customer shall have no obligation to pay for Installation Services until complete and accepted by Customer in writing. 6. 2 Notice of Changes to Fees. Flock reserves the right to change the fees for subsequent Renewal Terms by providing sixty ( 60) days ' notice ( which may be sent by email) prior to the end of the Initial Term or Renewal Term ( as applicable). 6. 3 Late Fees. If payment is not issued to Flock by the due date of the invoice, an interest penalty of 1. 0% of any unpaid amount may be added for each month or fraction thereafter, until final payment is made. 6. 4 Taxes. Customer is responsible for all taxes, levies, or duties, excluding only taxes based on Flock' s net income, imposed by taxing authorities associated with the order. If Flock has the legal obligation to pay or collect taxes, including Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B amount subsequently assessed by a taxing authority, for which Customer is responsible, the appropriate amount shall be invoice to and paid by Customer unless Customer provides Flock a legally sufficient tax exemption certificate and Flock shall not charge Customer any taxes from which it is exempt. If any deduction or withholding is required by law; Customer shall notify Flock and shall pay Flock any additional amounts necessary to ensure that the net amount that Flock receives, after any deduction and withholding, equals the amount Flock would have received if no deduction or withholding had been required. 7. TERM AND TERMINATION 7. 1 Term. The initial term of this Agreement shall be for sixty ( 60) months, unless sooner terminated as provided herein ( the " Term"). Following the Term, and notwithstanding any provision of the Order Form, this Agreement will automatically renew for up to three ( 3) successive renewal terms of one year each, a " Renewal Term") unless either Party gives the other Party notice of non- renewal at least thirty (30) days prior to the end of the then- current term. 7. 2 Termination. Upon termination or expiration of this Agreement, Flock will remove any applicable Flock Hardware at a commercially reasonable time period. In the event of any material breach of this Agreement, the non- breaching Party may terminate this Agreement prior to the end of the Term by giving thirty (30) days prior written notice to the breaching Party; provided, however, that this Agreement will not terminate if the breaching Party has cured the breach prior to the expiration of such thirty ( 30) day period (" Cure Period"). Either Party may terminate this Agreement ( i) upon the institution by or against the other Party of insolvency, receivership or bankruptcy proceedings, ( ii) upon the other Party' s making an assignment for the benefit of creditors, or ( iii) upon the other Party's dissolution or ceasing to do business. In the event of a material breach by Flock, Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B and Flock is unable to cure within the Cure Period, Flock will refund Customer a pro- rata portion of the pre- paid fees for Services not received due to such termination. 7. 3 Survival. The following Sections will survive termination: 1, 3, 4, 5, 6, 7, 8. 3, 8. 4, 9, 10. 1 and 11. 6. 8. REMEDY FOR DEFECT; WARRANTY AND DISCLAIMER 8. 1 Manufacturer Defect. Upon a malfunction or failure of Flock Hardware or Embedded Software to perform as represented by Flock or as described in any applicable documentation ( a ` Defect'), Customer shall use reasonable efforts to notify Flock' s technical support team. In the event of a Defect, Flock shall make a commercially reasonable attempt to repair or replace the defective Flock Hardware at no additional cost to the Customer. Flock reserves the right, in its sole discretion, to repair or replace such Defect, provided that Flock shall conduct inspection or testing within a commercially reasonable time, but no longer than seven ( 7) business days after Customer gives notice to Flock. 8. 2 Replacements. In the event that Flock Hardware is lost, stolen, or damaged, Customer may request a replacement of Flock Hardware at a fee according to the reinstall fee schedule ( https:// www. flock safety. com/ reinstall fee- schedule). In the event that Customer chooses not to replace lost, damaged, or stolen Flock Hardware, Customer understands and agrees that 1) Flock Services will be materially affected, and ( 2) that Flock shall have no liability to Customer regarding such affected Flock Services, nor shall Customer receive a refund for the lost, damaged, or stolen Flock Hardware. 8. 3 Warranty. Flock shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B interruptions in the Services and shall perform the Installation Services in a professional and workmanlike manner. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by Flock or by third- party providers, or because of other causes beyond Flock' s reasonable control, but Flock shall use reasonable efforts to provide advance notice in writing or by e- mail of any scheduled service disruption. 8. 4 Disclaimer. THE REMEDY DESCRIBED IN SECTION 8. 1 ABOVE IS CUSTOMER' S SOLE REMEDY, AND FLOCK' S SOLE LIABILITY, WITH RESPECT TO DEFECTS. FLOCK DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SERVICES. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES ARE PROVIDED "AS IS" AND FLOCK DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NON- INFRINGEMENT. THIS DISCLAIMER ONLY APPLIES TO THE EXTENT ALLOWED BY THE STATE OF CALIFORNIA. 8. 5 Insurance. Flock will maintain commercial general, auto, and cyber liability and worker compensation policies, in such form and with such limits, as set forth Exhibit A attached hereto. 8. 6 Force Majeure. Parties hereto are not responsible or liable for any delays or failures in performance from any cause beyond their control, including, but not limited to acts of God, changes to law or regulations, embargoes, war, terrorist acts, pandemics ( including the spread of variants), issues of national security, acts or omissions of third- party technology providers, riots, fires, earthquakes, Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B floods, power blackouts, strikes, supply chain shortages of equipment or supplies, financial institution crisis, weather conditions or acts of hackers, internet service providers or any other third party acts or omissions not caused by a party hereto. Notwithstanding the foregoing, nothing herein shall require Customer to pay for any period during which the Services were unavailable as a result of any force majeure. A party claiming force majeure shall provide prompt written notice thereof to the other party together with an estimated time when the nonperforming party' s performance will re- commence. 9. LIMITATION OF LIABILITY; INDEMNITY 9. 1 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY, FLOCK, ITS OFFICERS, AFFILIATES, REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL NOT BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCT LIABILITY, OR OTHER THEORY: ( A) FOR LOSS OF REVENUE, BUSINESS OR BUSINESS INTERRUPTION; ( B) INCOMPLETE, CORRUPT, OR INACCURATE DATA; ( C) COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY; ( D) FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; ( E) FOR ANY MATTER BEYOND FLOCK' S ACTUAL KNOWLEDGE OR REASONABLE CONTROL INCLUDING REPEAT CRIMINAL ACTIVITY OR INABILITY TO CAPTURE FOOTAGE; OR F) FOR ANY AMOUNTS THAT, TOGETHER WITH AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE FEES PAID AND/ OR PAYABLE BY CUSTOMER TO FLOCK FOR THE SERVICES UNDER THIS AGREEMENT IN THE TWELVE ( 12) MONTHS PRIOR TO THE ACT OR OMISSION THAT Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B GAVE RISE TO THE LIABILITY, IN EACH CASE, WHETHER OR NOT FLOCK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION OF LIABILITY OF SECTION ONLY APPLIES TO THE EXTENT ALLOWED BY THE STATE OF CALIFORNIA. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE FOREGOING LIMITATIONS OF LIABILITY SHALL NOT APPLY ( I) IN THE EVENT OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR ( II) TO ANY INDEMNIFICATION OBLIGATIONS. 9. 2 Responsibility. Each Party to this Agreement shall assume the responsibility and liability for the acts and omissions of its own employees, officers, or agents, in connection with the performance of their official duties under this Agreement. Each Party to this Agreement shall be liable for the torts of its own officers, agents, or employees. 9. 3 Flock Indemnity. Flock shall indemnify and hold harmless Customer, its agents and employees, from liability of any kind, including claims, stop notices, costs ( including defense) and expenses, on account of: ( i) any alleged or actual infringement of any intellectual property or proprietary right, including any copyrighted material, patented or unpatented invention, articles, device or appliance manufactured or used in the performance of this Agreement, or related to the Flock Services; or ( ii) any damage, injury, or death of any person, or damage to property, caused by, related to or arising out of installation of Flock Hardware by Flock or any of its employees, contractors, or agents, except for where such damage or injury was caused solely by the negligence of the Customer or its agents, officers or employees. Should Customer or any Authorized End User be prevented from using the Flock Services or any of the Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Flock Hardware as a result of any such infringement claim or violation, at Flock' s expense, Flock shall ( i) obtain all rights for Customer and Authorized End Users to utilize the Services and/ or Flock Hardware; ( ii) provide alternate services or hardware providing substantially the same functionality; or ( iii) refund all amounts prepaid to Flock, remove all Flock Hardware, and restore each Flock Hardware site to its original condition, reasonable wear and tear excepted. 10. INSTALLATION SERVICES AND OBLIGATIONS 10. 1 Ownership of Hardware. Flock Hardware is owned and shall remain the exclusive property of Flock. Title to any Flock Hardware shall not pass to Customer upon execution of this Agreement, except as otherwise specifically set forth in this Agreement. Except as otherwise expressly stated in this Agreement, Customer is not permitted to remove, reposition, re- install, tamper with, alter, adjust or otherwise take possession or control of Flock Hardware, unless otherwise necessary in order to protect the public health or safety, or to safeguard Flock Hardware until retrieval by Flock. Customer agrees and understands that in the event Customer is found to engage in any of the foregoing restricted actions, all warranties herein shall be null and void, and this Agreement shall be subject to immediate termination for material breach by Customer. Customer shall not perform any acts which would interfere with the retention of title of the Flock Hardware by Flock. Should Customer default on any payment of the Flock Services for not less than sixty ( 60) days after service of a written demand for payment, Flock may remove Flock Hardware at Flock' s discretion and Flock shall restore all Customer property to substantially its original condition, wear and tear excepted. Such removal, if made by Flock, shall not be deemed a waiver of Flock' s rights to any damages Flock may sustain as a result of Customer' s Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B default and Flock shall have the right to enforce any other legal remedy or right. 10. 2 Deployment Plan. Flock shall advise Customer on the location and positioning of the Flock Hardware for optimal product functionality, as conditions and locations allow. Flock will collaborate with Customer to design the strategic geographic mapping of the location( s) and implementation of Flock Hardware to create a deployment plan Deployment Plan"). In the event that Flock determines that Flock Hardware will not achieve optimal functionality at a designated location, Flock shall have final discretion to veto a specific location and will provide alternative options to Customer. Customer may also reject any location proposed by Flock, without penalty. Customer hereby grants Flock a right of entry in and onto Customer' s property to perform Installation Services, pursuant to an agreed- upon written schedule and during normal business hours. Notwithstanding any other provision herein, Customer' s obligation to commence payment of subscription fees shall not commence unless and until Installation Services are complete and accepted in writing by Customer 10. 3 Changes to Deployment Plan. After installation of Flock Hardware, any subsequent requested changes to the Deployment Plan, including, but not limited to, relocating, re- positioning, adjusting of the mounting, removing foliage, replacement, changes to heights of poles will incur a fee according to the reinstall fee schedule located at ( https:// www.flocksafety.com/ reinstall- fee schedule), unless any such changes are necessary to comply with any law or regulation, or to minimize any risk to the public health or safety, and not due to any acts, omissions or requests of Customer. Customer will receive prior notice and confirm approval of any such fees. 10. 4 Customer Installation Obligations. Customer is responsible for any Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B applicable supplementary cost as described in the Customer Implementation Guide (" Customer Obligations"), provided to and acknowledged in writing by Customer. Customer represents and warrants that it has, or shall lawfully obtain, all necessary right title and authority and hereby authorizes Flock to install the Flock Hardware at the designated locations and to make any necessary inspections or maintenance in connection with such installation. 10. 5 Flock' s Obligations. Installation of any Flock Hardware shall be installed in a professional manner within a commercially reasonable time from the Effective Date of this Agreement, and in compliance with All Applicable Laws including, but not limited to, the current California Building Code and California Electrical Code. Upon termination or expiration of this Agreement, the Flock Hardware shall be removed and Flock shall restore the location to its original condition, ordinary wear and tear excepted. Flock will continue to monitor the performance of Flock Hardware for the length of the remainder of the Term, if any. Flock may use a subcontractor or third party to perform certain obligations under this Agreement, provided that Flock' s use of such subcontractor or third party shall not release Flock from any duty or liability to fulfill Flock' s obligations under this Agreement. 11. MISCELLANEOUS 11. 1 Compliance with Laws. Parties shall comply with all Applicable Laws, policies and ordinances and their associated record retention schedules, including responding to any subpoena request( s). Furthermore, the Installation Services constitute " public works" as defined in California Labor Code Section 1720. As to any and all work performed by Flock constituting public works, Flock shall comply with all California Labor Code requirements set forth in Exhibit " B" attached hereto Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B 11. 2 Severability. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect. 11. 3 Assignment. This Agreement is not assignable, transferable or sublicensable by either Party, without prior consent. Notwithstanding the foregoing, either Party may assign this Agreement, without the other Party' s consent, ( i) to any parent, subsidiary, or affiliate entity, or ( ii) to any purchaser of all or substantially all of such Party' s assets or to any successor by way of merger, consolidation or similar transaction. 11. 4 Entire Agreement. This Agreement, together with the Order Form( s), the reinstall fee schedule ( https:// www. flocksafetv.com/ reinstall- fee- schedule). and attached Exhibits, each of which are incorporated by reference herein, are the complete and exclusive statement of the mutual understanding of the Parties and supersedes and cancels all previous or contemporaneous negotiations, discussions or agreements, whether written and oral , communications and other understandings relating to the subject matter of this Agreement, and that all waivers and modifications must be in a writing signed by both Parties, except as otherwise provided herein. None of Customer's purchase orders, authorizations or similar documents will alter the terms of this Agreement, and any such conflicting terms are expressly rejected. Any agreed upon purchase order is subject to these terms. Customer shall not be bound by the terms of any " click- through" end user license or similar online agreement or terms and conditions unless provided to and approved in writing in advance by Customer. In the event of any conflict of terms found in this Agreement or any other terms and conditions, the terms of this Agreement shall prevail. Customer agrees that Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Customer' s purchase is neither contingent upon the delivery of any future functionality or features nor dependent upon any oral or written comments made by Flock with respect to future functionality or feature. 11. 5 Relationship. No agency, partnership, joint venture, or employment is created as a result of this Agreement and Parties do not have any authority of any kind to bind each other in any respect whatsoever. Flock shall at all times be and act as an independent contractor to Customer. 11. 6 Governing Law; Venue. This Agreement shall be governed by the laws of the State of California The Parties hereto agree that venue shall be in the Superior Court of the County of Orange, California, or the United States District Court, Central District, State of California. The Parties agree that the United Nations Convention for the International Sale of Goods is excluded in its entirety from this Agreement. 11. 7 Special Terms. Flock may offer certain special terms which are indicated in the proposal and will become part of this Agreement, upon Customer' s prior written consent and the mutual execution by authorized representatives Special Terms"). To the extent that any terms of this Agreement are inconsistent or conflict with the Special Terms, the Special Terms shall control. 11. 8 Publicity. Provided Customers consent is first obtained, Flock may reference and use Customer' s name and trademarks and disclose the nature of the Services in business and development and marketing efforts. 11. 9 Feedback. If Customer or Authorized End User provides any suggestions, ideas, enhancement requests, feedback, recommendations or other information relating to the subject matter hereunder, Customer or Authorized End User hereby assigns to Flock all right, title and interest ( including intellectual property Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B rights) with respect to or resulting from any of the foregoing. 11. 10 Export. Customer may not remove or export from the United States or allow the export or re- export of the Flock IP or anything related thereto, or any direct product thereof in violation of any restrictions, laws or regulations of the United States Department of Commerce, the United States Department of Treasury Office of Foreign Assets Control, or any other United States or foreign Customer or authority. As defined in Federal Acquisition Regulation (" FAR"), section 2. 101, the Services, the Flock Hardware and Documentation are commercial items" and according to the Department of Defense Federal Acquisition Regulation (" DFAR") section 252. 2277014( a)( 1) and are deemed to be " commercial computer software" and " commercial computer software documentation." Flock is compliant with FAR Section 889 and does not contract or do business with, use any equipment, system, or service that uses the enumerated banned Chinese telecommunication companies, equipment or services as a substantial or essential component of any system, or as critical technology as part of any Flock system. Consistent with DFAR section 227. 7202 and FAR section 12. 212, any use, modification, reproduction, release, performance, display, or disclosure of such commercial software or commercial software documentation by the U. S. Government will be governed solely by the terms of this Agreement and will be prohibited except to the extent expressly permitted by the terms of this Agreement. 11. 11 Headings. The headings are merely for organization and should not be construed as adding meaning to the Agreement or interpreting the associated sections. 11. 12 Authority. Each of the below signers of this Agreement represent that they understand this Agreement and have the authority to sign on behalf of Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B and bind the Parties they are representing. 11. 13 Conflict. In the event there is a conflict between this Agreement and any applicable statement of work, or Customer purchase order, this Agreement controls unless explicitly stated otherwise. 11. 14 Morality. In the event either party hereto or its agents become the subject of an indictment, contempt, scandal, crime of moral turpitude or similar event that would negatively impact or tarnish the other party' s reputation, the innocent party shall have the option to terminate this Agreement upon prior written notice to the other. 11. 15 Notices. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered; when receipt is electronically confirmed, if transmitted by email; the day after it is sent, if sent for next day delivery by recognized overnight delivery service; and upon receipt, if sent by certified or registered mail, return receipt requested. All notices will be provided to the email or mailing address listed in the Order Form. 11. 16 Non- Appropriation. Notwithstanding any other provision of this Agreement, all obligations of the Customer under this Agreement which require the expenditure of funds are conditioned on the availability of funds appropriated for that purpose. Customer shall have the right to terminate this Agreement for non-appropriation with thirty ( 30) days written notice without penalty or other cost. These Terms and Conditions are subject to change. Docusign Envelope ID: 612B8007-95CC-4FDF-8E99-90679D55695B Agenda Item F AGENDA STAFF REPORT DATE:April 13, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Michael Henderson, Chief of Police SUBJECT:Consideration of an Agreement with Flock Group, Inc. for the Installation and Use of Fixed Automated License Plater Reader Camera(s) at Certain Locations within College Park East ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7756 approving and authorizing the City Manager or his designee to enter into a three-year agreement with Flock Group, Inc. (Flock) for the installation of additional Automated License Plate Reader (ALPR) cameras in the City of Seal Beach in the areas of Lampson and Basswood and Lampson and Tulip, with a not-to-exceed amount of $36,600. BACKGROUND AND ANALYSIS: In 2018, the City of Seal Beach and the Seal Beach Police Department began researching fixed License Plate Reader (LPR) camera technology used by law enforcement. Former Councilmember Thomas Moore contacted the Police Department about Flock Safety, a LPR company based out of Atlanta, Georgia. In September 2018, the City Council approved an agreement with Flock Safety to install a wireless license plate reader camera, provide signage, and supply a mobile data connection that continuously uploads data to the cloud for immediate access, along with software capable of analyzing the captured data. Since 2018, this camera has assisted in locating reported missing persons and aided in identifying suspect vehicles and suspects involved in crimes occurring in the College Park West and Edison Park areas. The data collected is for law enforcement use only and is not shared with the general public or other prohibited entities. Retention of the data will comply with the Police Department’s existing LPR and information retention policies. College Park West has proven to be an ideal neighborhood for this technology as the tract has a single ingress and egress point. If a crime occurs or a person is reported missing, all license plates leaving the community will be captured and can Page 2 2 2 5 4 be reviewed by the Police Department’s personnel. Additionally, since 2018, the City of Seal Beach has enhanced its Automated Fixed License Plate Reader system with several Vigilant Solutions Inc. cameras at the major points of entry and exit to the community. The City seeks to install cameras in the College Park East area. Because only Flock and Vigilant (Motorola) provide systems compatible with the City’s existing patrol and dispatch platforms, both vendors were contacted for quotes; however, Vigilant did not respond. Flock’s pricing varies based on service levels and area needs, so maintaining separate contracts provides flexibility to adjust services if operational requirements change. The City seeks to install cameras to monitor the roadways in the area of Lampson and Basswood and Lampson and Tulip. This agreement is to install cameras in the College Park East area to monitor the roadways at Lampson and Basswood and Lampson and Tulip. The contract term for this area is three (3) years with a fixed installation rate and fixed annual subscription during the term, after which it will be subject to renewal separately from other City of Seal Beach and Flock agreements. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed the proposed agreement and approved as to form. FINANCIAL IMPACT: The purchase and installation of the cameras for the first year will be funded through discretionary funds provided by Council Member Senecal. The total cost for installing the new ALPR cameras, including the three-year (36-month) subscription, will not exceed $36,600. Funding for subsequent years will be incorporated into future budgets. Cost breakdown: - Year One camera purchase and subscription $12,000.00 o Year One Professional Services fee- $150 x4 $ 600.00 - Year One Total $12,600.00 - Year 2 Subscription Cost $12,000.00 - Year Three Subscription Cost $12,000.00 _____________________________________________ Total Three Year (36 months) not-to-exceed: $36,600.00 Page 3 2 2 5 4 STRATEGIC PLAN: This item supports the department’s Strategic Plan goal of providing safety measures to ensure the community remains a safe place for residents and visitors. RECOMMENDATION: That the City Council adopt Resolution 7756 approving and authorizing the City Manager or his designee to enter into a three-year agreement with Flock Group, Inc. (Flock) for the installation of additional Automated License Plate Reader (ALPR) cameras in the City of Seal Beach in the areas of Lampson and Basswood and Lampson and Tulip, with a not-to-exceed cost of $36,600. SUBMITTED BY: NOTED AND APPROVED: Michael Henderson Patrick Gallegos Michael Henderson, Chief of Police Patrick Gallegos, City Manager Prepared by: Michael Ezroj, Operations Bureau Captain ATTACHMENTS: A. Resolution 7756 B. Proposed Agreement RESOLUTION 7756 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AN AGREEMENT WITH FLOCK GROUP, INC. FOR AUTOMATED LICENSE PLATE READERS WITHIN COLLEGE PARK EAST WHEREAS, the Police Department proposes adding additional license plate reader cameras provided by Flock Group, Inc. in the area of the Lampson and Basswood and Lampson and Tulip; and, WHEREAS, this technology has proven itself to be a valuable tool to assist law enforcement in the location of missing persons and identifying suspect(s) and suspect(s) vehicles related to crimes in the area. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows: Section 1. That the City Manager is hereby authorized to execute for and on behalf of the City of Seal Beach the services agreement between Flock Group, Inc. and the City of Seal Beach in an amount not to exceed $36,600.00 over three (3) years. Section 2. The City Council directs the Police Department and City staff to collect and retain data from such license plate readers in accordance with the Department’s retention and license plate reader policies, Government Code § 34090.6, and Civil Code Title 1798.90.5. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 13th day of April 2026 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa Landau, Mayor 1 1 0 0 5 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 7756 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 13th day of April, 2026. Gloria D. Harper, City Clerk Flock Safety + CA - Seal Beach PD ______________ Flock Group Inc. 1170 Howell Mill Rd, Suite 210 Atlanta, GA 30318 ______________ MAIN CONTACT: Jake Sherman jake.sherman@flocksafety.com 8187467444 Quote Number: Q-187587 Expiration Date: 04/25/2026 Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 ORDER FORM This order form (“Order Form”) hereby incorporates and includes the terms of the previously executed agreement (the “Terms”) which describe and set forth the general legal terms governing the relationship (collectively, the "Agreement" ). The Terms contain, among other things, warranty disclaimers, liability limitations and use limitations. Those terms are attached hereto for reference. This additional services Agreement will be effective when this Order Form is executed by both Parties (the “Effective Date”) Customer: CA - Seal Beach PD Initial Term: 36 Months Legal Entity Name: CA - Seal Beach PD Renewal Term: 36 Months Accounts Payable Email: invoices@sealbeachca.gov Payment Terms: Net 30 Address: 211 8th Street Seal Beach, California 90740 Billing Frequency: Annual Plan - First Year Invoiced at Signing. Retention Period: 30 Days Hardware and Software Products Recurring amounts over subscription term Item Cost Quantity Total Flock Safety Platform $12,000.00 Flock Safety LPR Products Flock Safety LPR, fka Falcon Included 4 Included <# <<# < Professional Services and One Time Purchases Item Cost Quantity Total One Time Fees Flock Safety Professional Services Professional Services - Existing Infrastructure Implementation Fee $150.00 4 $600.00 Subtotal Year 1: $12,600.00 Annual Recurring Subtotal: $12,000.00 Estimated Tax: $0.00 Contract Total: $36,600.00 Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then -current term. This Order Form is subject to the Terms attached hereto and incorporated by reference. The Term for Flock Hardware shall commence upon first installation and validation, except that the Term for any Flock Hardwar e that requires self- installation shall commence upon execution of the Agreement. In the event a Customer purchases more than one t ype of Flock Hardware, the earliest Term start date shall control. In the event a Customer purchases software only, the Term shall commence upon execution of the Agre ement. Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Billing Schedule Billing Schedule Amount (USD) Year 1 At Contract Signing $12,600.00 Annual Recurring after Year 1 $12,000.00 Contract Total $36,600.00 *Tax not included Discounts Discounts Applied Amount (USD) Flock Safety Platform $0.00 Flock Safety Add-ons $0.00 Flock Safety Professional Services $0.00 Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Product and Services Description Flock Safety Platform Items Product Description Flock Safety LPR, fka Falcon Law enforcement grade infrastructure-free (solar power + LTE) license plate recognition camera with Vehicle Fingerprint ™ technology (proprietary machine learning software) and real-time alerts for unlimited users. Professional Services - Existing Infrastructure Implementation Fee One-time Professional Services engagement. Includes site and safety assessment of existing vertical infrastructure location, came ra setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief. Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 By executing this Order Form, Customer represents and warrants that it has read and agrees all of Terms attached hereto. The Parties have executed this Agreement as of the dates set forth below. FLOCK GROUP, INC. Customer: CA - Seal Beach PD By: \FSSignature2\ By: \FSSignature1\ Name: \FSFullname2\ Name: \FSFullname1\ Title: \FSTitle2\ Title: \FSTitle1\ Date: \FSDateSigned2\ Date: \FSDateSigned1\ PO Number: Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 3/24/2026 Chief Legal Officer Dan Haley TERMS AND CONDITIONS 1. DEFINITIONS Certain capitalized terms, not otherwise defined herein, have the meanings set forth or cross- referenced in this Section 1. 1. 1 " Anonymized Data" means Customer Data permanently stripped of identifying details and any potential personally identifiable information, by commercially available standards which irreversibly alters data in such a way that a data subject( i. e., individual person or entity) can no longer be identified directly or indirectly, and is thereby rendered " anonymized data" as defined in ISO 25237: 2017, Sections 3. 2 and 3. 3. 1. 2 " Authorized End User( s)" means any individual employees, agents, or contractors of Customer accessing or using the Services, under the rights granted to Customer pursuant to this Agreement. 1. 3 " Customer Data" means the data, media and content provided or made accessible to Flock by Customer through the Services. For the avoidance of doubt, the Customer Data will include the Footage. 1. 4. " Customer Hardware" means the third- party camera owned or provided by Customer and any other physical elements that interact with the Embedded Software and the Web Interface to provide the Services. 1. 5 " Embedded Software" means the Flock proprietary software and/ or firmware integrated with or installed on the Flock Hardware or Customer Hardware. 1. 6 " Flock Hardware" means the Flock device( s), which may include the pole, cameras, clamps, solar panel, installation components, and any other Flock owned physical elements that interact with the Embedded Software and the Web Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Interface, to provide the Flock Services as specifically set forth in the applicable product addenda. 1. 7 " Flock/ P' means the Services, the Embedded Software, and any intellectual property or proprietary information therein or otherwise provided to Customer and/ or its Authorized End Users. Flock IP does not include Footage as defined below). 1. 8 " Flock Network End User( s)" means any user of the Flock Services that Customer authorizes access to or receives data from, pursuant to the licenses granted herein. 1. 9 " Flock Services" or Services" means the provision of Flock' s software and hardware situational awareness solution, via the Web Interface, for automatic license plate detection, alerts, audio detection, searching image records, video and sharing Footage. 1. 10 " Footage" means still images, video, audio and other data captured by the Flock Hardware or Customer Hardware in the course of and provided via the Flock Services. 1. 11 “Hotlist( s)" means a digital file containing alphanumeric license plate related information pertaining to vehicles of interest, which may include stolen vehicles, stolen vehicle license plates, vehicles owned or associated with wanted or missing person( s), vehicles suspected of being involved with criminal or terrorist activities, and other legitimate matters of concern to law enforcement. Hotlist also includes, but is not limited to, national data ( i. e., NCIC) for similar categories, license plates associated with AMBER Alerts or Missing Persons/Vulnerable Adult Alerts and includes manually entered license plate information associated with crimes that have occurred in any local jurisdiction. 1. 12 " Installation Services" means the services provided by Flock for Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 installation of Flock Services and Flock Hardware. 1. 13 " Permitted Purpose" means any legitimate law enforcement purpose, including but not limited to the awareness, prevention, and prosecution of crime, investigations, prevention of commercial harm, to the extent permitted by law. 1. 14 " Retention Period' means the time period that the Customer Data is stored within the cloud storage, as specified in the product addenda. 1. 15 " Vehicle FingerprintTM" means the unique vehicular attributes captured through Services such as: type, make, color, state registration, missing/ covered plates, bumper stickers, decals, roof racks, and bike racks. 1. 16 " Web Interface" means the website( s) or application( s) through which Customer and its Authorized End Users can access the Services. 1. 17 " Applicable Laws" means Title 1. 81 of Part 4 of Division 3 of the California Civil Code, including Section 1798. 90. 5, et seq., and the California Consumer Privacy Act, Section 1798. 100, et seq., Government Code Section 7284, et seq., and any and all other applicable local, State and federal laws and regulations. 2. SERVICES AND SUPPORT 2. 1 Provision of Access. Flock hereby grants to Customer a non- exclusive, nontransferable right to access the features and functions of the Flock Services via the Web Interface during the Term, solely for the Authorized End Users. The Footage will be available for Authorized End Users to access and download via the Web Interface the longer of: the Retention Period, period required by Customer' s records retention requirements, or State law including California Government Code Section 34090, et seq., or any period set forth in a notice of litigation hold as provided herein. Authorized End Users will be required to sign Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 up for an account and select a password and username (" User ID"). If requested by Customer, Flock will require and provide 2- step verification for any access by any user of the Services. Customer shall be responsible for all acts and omissions of Authorized End Users, and any act or omission by an Authorized End User which, including any acts or omissions of authorized End user which would constitute a breach of this agreement if undertaken by Customer. Customer shall undertake reasonable efforts to make all Authorized End Users aware of all applicable provisions of this Agreement and shall cause Authorized End Users to comply with such provisions. Flock may use the services of one or more third parties to deliver any part of the Flock Services, ( such as using a third party to host the Web Interface for cloud storage or a cell phone provider for wireless cellular coverage), provided any such third parties with access to Customer Data, maintain confidentiality of Customer Data. 2. 2 Embedded Software License. Flock grants Customer a limited, nonexclusive, non- transferable, non- sublicensable ( except to the Authorized End Users), revocable right to use the Embedded Software as it pertains to Flock Services, solely as necessary for Customer to use the Flock Services. 2. 3 Support Services. Flock shall monitor the Flock Services, and any applicable device health, in order to improve performance and functionality. Flock will use commercially reasonable efforts to respond to requests for support within forty -eight (48) hours of becoming aware of a malfunction in the Flock Services or Flock Hardware. Flock will provide Customer with reasonable technical and onsite support and maintenance services in- person, via phone or by email at support@flocksafetv.com ( such services collectively referred to as ' Support Services"). 2. 4 Upgrades to Platform. Flock may make any upgrades to system or platform Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 that it deems necessary or useful to ( i) maintain or enhance the quality or delivery of Flock' s products or services to its customers, the competitive strength of, or market for, Flock' s products or services such platform or system' s cost efficiency or performance, or (ii) to comply with applicable law. Parties understand and Flock agrees that such upgrades are necessary from time to time and will not diminish the quality of the Services or materially change any terms or conditions within this Agreement. 2. 5 Service Interruption. Services may be interrupted in the event that: ( a) Flock' s provision of the Services to Customer or any Authorized End User is prohibited by applicable law; ( b) any third- party services required in order to provide the Services are interrupted; ( c) if Flock reasonably believe Services are being used for malicious, unlawful, or otherwise unauthorized use; ( d) there is a threat or attack on any of the Flock IP by a third party; or (e) scheduled or emergency maintenance (" Service Interruption"). Flock will make commercially reasonable efforts to provide written notice of any Service Interruption to Customer, to provide updates, and to resume providing access to Flock Services as soon as reasonably possible after the event giving rise to the Service Interruption is cured. Flock will have no liability for any damage, liabilities, losses including any loss of data or profits), or any other consequences that Customer or any Authorized End User may incur as a result of an unforeseeable Service Interruption. To the extent that the Service Interruption is not caused by Customer' s direct actions or by the actions of parties under the Customer' s direction, the time will be tolled by the duration of the Service Interruption ( for any continuous suspension lasting at least one full day). For example, in the event of a Service Interruption lasting five ( 5) continuous days, Customer will receive a credit for Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 five ( 5) free days at the end of the Term. 2. 6 Service Suspension. Flock may temporarily suspend Customer' s and any Authorized End User' s access to any portion or all of the Flock IP or Flock Service if( a) there is a threat or attack on any of the Flock IP by Customer; ( b) Customer' s or any Authorized End User' s use of the Flock IP disrupts or poses a security risk to the Flock IP or any other customer or vendor of Flock; ( c) Customer or any Authorized End User is/ are using the Flock IP for fraudulent or illegal activities; (d) Customer has violated any term of this provision, including, but not limited to, utilizing Flock Services for anything other than the Permitted Purpose; or ( e) any unauthorized access to Flock Services through Customer' s account (" Service Suspension"). Customer shall not be entitled to any remedy for the Service Suspension period, including any reimbursement, tolling, or credit, unless the suspension occurred at no fault of Customer. If the Service Suspension was not caused by Customer, the Term will be tolled by the duration of the Service Suspension. 2. 7 Hazardous Conditions. Flock Services do not contemplate hazardous materials, or other hazardous conditions, including, without limit, asbestos, lead, toxic or flammable substances. In the event any such hazardous materials are discovered in the designated locations in which Flock is to perform services under this Agreement, Flock shall have the right to cease work immediately. 3. CUSTOMER OBLIGATIONS 3. 1 Customer Obligations. Flock will assist Customer Authorized End Users in the creation of a User ID. Authorized End Users agree to provide Flock with accurate, complete, and updated registration information. Authorized End Users may not select as their User ID, a name that they do not have the right to use, or any other name with the intent of impersonation. Customer and Authorized End Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Users may not transfer their account to anyone else without prior written permission of Flock. Authorized End Users shall not share their account username or password information and must protect the security of the username and password. Unless otherwise stated and defined in this Agreement, Customer shall not designate Authorized End Users for persons who are not officers, employees, or agents of Customer. Authorized End Users shall only use Customer- issued email addresses for the creation of their User ID. Customer is responsible for any Authorized End User activity associated with its account. Customer shall ensure that Customer provides Flock with up to date contact information at all times during the Term of this agreement. Customer shall be responsible for obtaining and maintaining any equipment and ancillary services needed to connect to, access or otherwise use the Flock Services. Customer shall ( at its own expense) provide Flock with reasonable access and use of Customer facilities and Customer personnel in order to enable Flock to perform the Services ( such obligations of Customer are collectively defined as ` Customer Obligations"). 3. 2 Customer Representations and Warranties. Customer represents, covenants, and warrants that Customer shall use Flock Services only in compliance with this Agreement and all Applicable Laws and regulations, including but not limited to any laws relating to the recording or sharing of data, video, photo, or audio content. 4. DATA USE AND LICENSING 4. 1 Customer Data. As between Flock and Customer, all right, title and interest in the Customer Data, belong to and are retained solely by Customer. For the term of this Agreement, Customer hereby grants to Flock a limited, nonexclusive, royalty- free, irrevocable, worldwide license to use the Customer Data Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 solely for the purpose of performing all acts as may be necessary for Flock to lawfully provide the Flock Services to Customer. Flock does not own and shall not sell Customer Data. Notwithstanding any other provision herein, Flock shall: ( a) keep and maintain Customer Data and Customer Generated Data ( collectively, " Data", sometimes in this Section 4) in strict confidence, using such degree of care as is appropriate and consistent with its obligations as further described in this Agreement and applicable law to avoid unauthorized access, use, disclosure, or loss; ( b) use and disclose the Data solely and exclusively for the purpose of providing the Services, such use and disclosure being in accordance with this Agreement, and Applicable Laws; ( c) allow access to the Data only to Customer, Authorized End Users, and those employees or agents of Flock who are directly involved with and responsible for providing the Services, and/ or third parties bound in writing to maintain confidentiality of the Data; and, ( d) not use, sell, rent, transfer, distribute, or otherwise disclose or make available any of the Data for Flock' s own purposes or for the benefit of anyone other than Customer without Customer' s prior written consent, or as otherwise provided herein. 4. 2 Customer Generated Data. Flock may provide Customer with the opportunity to post, upload, display, publish, distribute, transmit, broadcast, or otherwise make available, messages, text, illustrations, files, images, graphics, photos, comments, sounds, music, videos, information, content, ratings, reviews, data, questions, suggestions, or other information or materials produced by Customer (` Customer Generated Data"). Customer shall retain whatever legally cognizable right, title, and interest in Customer Generated Data. Customer understands and acknowledges that Flock has no obligation to monitor or enforce Customer' s intellectual property rights of Customer Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Generated Data. For the term of this Agreement, Customer grants Flock a nonexclusive, irrevocable, worldwide, royalty- free, license to use the Customer Generated Data for the purpose of providing Flock Services. Flock does not own and shall not sell, share or disseminate Customer Generated Data, except as expressly authorized herein.. 4. 3 Anonymized Data. Flock shall have the right to collect, analyze, and anonymize Customer Data and Customer Generated Data to the extent such anonymization renders the data non- identifiable to create Anonymized Data, as defined herein, to use and perform the Services and related systems and technologies, including the training of machine learning algorithms. Customer hereby grants Flock a non- exclusive, worldwide, perpetual, royalty- free right to use and distribute such Anonymized Data to improve and enhance the Services and for other development, diagnostic and corrective purposes, and other Flock offerings. Parties understand that the aforementioned license is required for continuity of Services. Flock does not own and shall not sell Anonymized Data. 4.4 Security of Customer Data. In storing, handling, transmitting, and/ or accessing Customer Data and Customer Generated Data, Flock shall incorporate a comprehensive set of data security protocols comprising a data privacy and information security program, including physical, technical, administrative, and organizational safeguards, that comply with Applicable Laws, to protect Data at rest, Data in use, and Data in transit, and that, at minimum: ( i) control access to Data; ( ii) include regular audits, including threat assessments, to evaluate susceptibility to unauthorized access; ( iii) provide regular maintenance and updating to ensure current cyber threats are identified and proactive defensive measures are undertaken; ( iv) meet all current rules, regulations, policies, and Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 standards of the Criminal Justice Information Services, Division of the Federal Bureau of Investigation ( CJIS), including ensuring that persons having access to Data are free of criminal history or any other security threat that would otherwise disqualify any such person from accessing confidential criminal justice information under current rules, regulations, policies, and standards of the CJIS; and ( v) provide for the physical and environmental protection of all Data. In the event of any act, error or omission, negligence, misconduct, or breach that permits any unauthorized access to, or that compromises or is suspected to compromise the security, confidentiality, or integrity of Data , or the physical, technical, administrative, or organizational safeguards put in place by Flock that relate to the protection of the security, confidentiality, or integrity of that Data, Flock shall, as applicable: (a) notify Customer as soon as practicable or as required by Applicable Laws, but no later than forty- eight ( 48) hours of becoming aware of such occurrence; ( b) cooperate with Customer in investigating the occurrence, including making available all relevant records, logs, files, data reporting, and other materials required to comply with Applicable Laws; ( c) in the case of personally identifiable information, provide all notifications to individuals required by Applicable Laws; ( d) perform or take any other actions required to comply with Applicable Law as a result of the occurrence; and ( e) provide to Customer a detailed plan within ten ( 10) calendar days of the occurrence describing the measures Flock will undertake to prevent a future occurrence. To the maximum extent permitted by law, Flock shall indemnify, defend and pay reasonable attorneys ' fees and costs, and hold Customer and Customer' s elected officials, officers, employees, and agents free and harmless, with respect to any and all claims and liabilities to the extent arising out of, related to, or incurred in connection with any unauthorized access to or theft of Data, including Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 any and all related bank charges in the case of identity theft, to the extent arising out of the negligence or willful misconduct of Flock or any of its agents ; provided, however, that Flock' s liability for "cyber theft" shall not exceed the limits of Flock' s cyber liability policy required herein. All cloud based storage shall comply with ISO/ IEC 27001 - 27018, as applicable, or successor standards thereto, and shall be provided solely within the continental United States and on computing and data storage devices residing therein, and all such locations shall be disclosed to Customer promptly upon request. Customer shall have full and complete access to, and ability to download, any Data 24 hours per day, 7 days per week, except during authorized periods of maintenance by Flock or during a Service Suspension not due to the fault of Customer. Customer may at any time, provide Flock with a written " notice of litigation hold", therein requiring Flock to isolate and maintain any Customer Data that Flock has access to and that becomes relevant to any criminal or civil action or discovery process involving Customer. 5. CONFIDENTIALITY; DISCLOSURES 5. 1 Confidentiality. To the extent required by any applicable public records requests, each Party ( the " Receiving Party') understands that the other Party the " Disclosing Party') has disclosed or may disclose business, technical or financial information relating to the Disclosing Party' s business ( hereinafter referred to as " Proprietary Information" of the Disclosing Party). Proprietary Information includes non- public information provided by the Disclosing Party to the Receiving Party regarding features, functionality, and performance of this Agreement. For avoidance of doubt, all Customer Data and Customer Generated Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Data is Proprietary Information. The Receiving Party agrees: ( i) to take the same security precautions to protect against disclosure or unauthorized use of such Proprietary Information that the Party takes with its own proprietary information, but in no event less than commercially reasonable precautions, and ( ii) not to use except in performance of the Services or as otherwise permitted herein) or divulge to any third person any such Proprietary Information. The Disclosing Party agrees that the foregoing shall not apply with respect to any information that the Receiving Party can document (a) is or becomes generally available to the public; or ( b) was in its possession or known by it prior to receipt from the Disclosing Party; or ( c) was rightfully disclosed to it without restriction by a third party; or ( d) was independently developed without use of any Proprietary Information of the Disclosing Party. Nothing in this Agreement will prevent the Receiving Party from disclosing the Proprietary Information pursuant to any judicial or governmental order, subpoena, or the California Public Records Act, provided that the Receiving Party gives the Disclosing Party reasonable prior notice of such disclosure to contest such order or other compelled disclosure. At the termination of this Agreement, all Proprietary Information will be returned to the Disclosing Party, destroyed or erased ( if recorded on an erasable storage medium), together with any copies thereof, when no longer needed for the purposes above, or upon request from the Disclosing Party, and in any case upon termination of the Agreement. Notwithstanding any termination, all confidentiality obligations as to Proprietary Information that is asserted to be a trade secret shall continue in perpetuity or until such information is no longer trade secret. 5. 2 Usage Restrictions on Flock IP. Flock and its licensors retain all right, title Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 and interest in and to the Flock IP and its components, and Customer acknowledges that it neither owns nor acquires any additional rights in and to the Flock IP not expressly granted by this Agreement. Customer further acknowledges that Flock retains the right to use the Flock IP for any purpose in Flock' s sole discretion. Customer and Authorized End Users shall not: ( i) copy or duplicate any of the Flock IP; ( ii) decompile, disassemble, reverse engineer, or otherwise attempt to obtain or perceive the source code from which any software component of any of the Flock IP is compiled or interpreted, or apply any other process or procedure to derive the source code of any software included in the Flock IP; ( iii) attempt to modify, alter, tamper with or repair any of the Flock IP, or attempt to create any derivative product from any of the foregoing; ( iv) interfere or attempt to interfere in any manner with the functionality or proper working of any of the Flock IP; ( v) remove, obscure, or alter any notice of any intellectual property or proprietary right appearing on or contained within the Flock Services or Flock IP; ( vi) use the Flock Services for anything other than the Permitted Purpose; or ( vii) assign, sublicense, sell, resell, lease, rent, or otherwise transfer, convey, pledge as security, or otherwise encumber, Customer' s rights. There are no implied rights. 5. 3 Disclosure of Footage. Subject to and during the Retention Period, and in compliance with all Applicable Laws, Flock may access, use, preserve and/ or disclose the Footage to law enforcement authorities, government officials, and/ or third parties, if legally required to do so or if Flock has a good faith belief that such access, use, preservation or disclosure is reasonably necessary to comply with a court order, subpoena, Applicable Laws, or to enforce this Agreement, or detect, prevent or otherwise address an actual security breach, crime, or emergency situations where there is an actual threat to public health or safety. Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 6. PAYMENT OF FEES 6. 1 Billing and Payment of Fees. Customer shall pay the fees set forth in the applicable Order Form based on the billing structure and payment terms as indicated in the Order Form. If Customer believes that Flock has billed Customer incorrectly, Customer shall use reasonable efforts to contact Flock no later than thirty ( 30) days after the closing date on the first invoice in which the error or problem appeared to receive an adjustment or credit. Customer acknowledges and agrees that a failure to utilize reasonable efforts to contact Flock within this period will serve as a waiver of any claim. If any undisputed fee is more than thirty ( 30) days overdue, Flock may, without limiting its other rights and remedies, suspend delivery of its service until such undisputed invoice is paid in full. Flock shall provide at least thirty ( 30) days ' prior written notice to Customer of the payment delinquency before exercising any suspension right. Notwithstanding any other provision herein, Customer shall have no obligation to pay for Installation Services until complete and accepted by Customer in writing. 6. 2 Notice of Changes to Fees. Flock reserves the right to change the fees for subsequent Renewal Terms by providing sixty ( 60) days ' notice ( which may be sent by email) prior to the end of the Initial Term or Renewal Term ( as applicable). 6. 3 Late Fees. If payment is not issued to Flock by the due date of the invoice, an interest penalty of 1. 0% of any unpaid amount may be added for each month or fraction thereafter, until final payment is made. 6. 4 Taxes. Customer is responsible for all taxes, levies, or duties, excluding only taxes based on Flock' s net income, imposed by taxing authorities associated with the order. If Flock has the legal obligation to pay or collect taxes, including Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 amount subsequently assessed by a taxing authority, for which Customer is responsible, the appropriate amount shall be invoice to and paid by Customer unless Customer provides Flock a legally sufficient tax exemption certificate and Flock shall not charge Customer any taxes from which it is exempt. If any deduction or withholding is required by law; Customer shall notify Flock and shall pay Flock any additional amounts necessary to ensure that the net amount that Flock receives, after any deduction and withholding, equals the amount Flock would have received if no deduction or withholding had been required. 7. TERM AND TERMINATION 7. 1 Term. The initial term of this Agreement shall be for sixty ( 60) months, unless sooner terminated as provided herein ( the " Term"). Following the Term, and notwithstanding any provision of the Order Form, this Agreement will automatically renew for up to three ( 3) successive renewal terms of one year each, a " Renewal Term") unless either Party gives the other Party notice of non- renewal at least thirty (30) days prior to the end of the then- current term. 7. 2 Termination. Upon termination or expiration of this Agreement, Flock will remove any applicable Flock Hardware at a commercially reasonable time period. In the event of any material breach of this Agreement, the non- breaching Party may terminate this Agreement prior to the end of the Term by giving thirty (30) days prior written notice to the breaching Party; provided, however, that this Agreement will not terminate if the breaching Party has cured the breach prior to the expiration of such thirty ( 30) day period (" Cure Period"). Either Party may terminate this Agreement ( i) upon the institution by or against the other Party of insolvency, receivership or bankruptcy proceedings, ( ii) upon the other Party' s making an assignment for the benefit of creditors, or ( iii) upon the other Party's dissolution or ceasing to do business. In the event of a material breach by Flock, Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 and Flock is unable to cure within the Cure Period, Flock will refund Customer a pro- rata portion of the pre- paid fees for Services not received due to such termination. 7. 3 Survival. The following Sections will survive termination: 1, 3, 4, 5, 6, 7, 8. 3, 8. 4, 9, 10. 1 and 11. 6. 8. REMEDY FOR DEFECT; WARRANTY AND DISCLAIMER 8. 1 Manufacturer Defect. Upon a malfunction or failure of Flock Hardware or Embedded Software to perform as represented by Flock or as described in any applicable documentation ( a ` Defect'), Customer shall use reasonable efforts to notify Flock' s technical support team. In the event of a Defect, Flock shall make a commercially reasonable attempt to repair or replace the defective Flock Hardware at no additional cost to the Customer. Flock reserves the right, in its sole discretion, to repair or replace such Defect, provided that Flock shall conduct inspection or testing within a commercially reasonable time, but no longer than seven ( 7) business days after Customer gives notice to Flock. 8. 2 Replacements. In the event that Flock Hardware is lost, stolen, or damaged, Customer may request a replacement of Flock Hardware at a fee according to the reinstall fee schedule ( https:// www. flock safety. com/ reinstall fee- schedule). In the event that Customer chooses not to replace lost, damaged, or stolen Flock Hardware, Customer understands and agrees that 1) Flock Services will be materially affected, and ( 2) that Flock shall have no liability to Customer regarding such affected Flock Services, nor shall Customer receive a refund for the lost, damaged, or stolen Flock Hardware. 8. 3 Warranty. Flock shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 interruptions in the Services and shall perform the Installation Services in a professional and workmanlike manner. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by Flock or by third- party providers, or because of other causes beyond Flock' s reasonable control, but Flock shall use reasonable efforts to provide advance notice in writing or by e- mail of any scheduled service disruption. 8. 4 Disclaimer. THE REMEDY DESCRIBED IN SECTION 8. 1 ABOVE IS CUSTOMER' S SOLE REMEDY, AND FLOCK' S SOLE LIABILITY, WITH RESPECT TO DEFECTS. FLOCK DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SERVICES. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES ARE PROVIDED "AS IS" AND FLOCK DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NON- INFRINGEMENT. THIS DISCLAIMER ONLY APPLIES TO THE EXTENT ALLOWED BY THE STATE OF CALIFORNIA. 8. 5 Insurance. Flock will maintain commercial general, auto, and cyber liability and worker compensation policies, in such form and with such limits, as set forth Exhibit A attached hereto. 8. 6 Force Majeure. Parties hereto are not responsible or liable for any delays or failures in performance from any cause beyond their control, including, but not limited to acts of God, changes to law or regulations, embargoes, war, terrorist acts, pandemics ( including the spread of variants), issues of national security, acts or omissions of third- party technology providers, riots, fires, earthquakes, Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 floods, power blackouts, strikes, supply chain shortages of equipment or supplies, financial institution crisis, weather conditions or acts of hackers, internet service providers or any other third party acts or omissions not caused by a party hereto. Notwithstanding the foregoing, nothing herein shall require Customer to pay for any period during which the Services were unavailable as a result of any force majeure. A party claiming force majeure shall provide prompt written notice thereof to the other party together with an estimated time when the nonperforming party' s performance will re- commence. 9. LIMITATION OF LIABILITY; INDEMNITY 9. 1 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY, FLOCK, ITS OFFICERS, AFFILIATES, REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL NOT BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCT LIABILITY, OR OTHER THEORY: ( A) FOR LOSS OF REVENUE, BUSINESS OR BUSINESS INTERRUPTION; ( B) INCOMPLETE, CORRUPT, OR INACCURATE DATA; ( C) COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY; ( D) FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; ( E) FOR ANY MATTER BEYOND FLOCK' S ACTUAL KNOWLEDGE OR REASONABLE CONTROL INCLUDING REPEAT CRIMINAL ACTIVITY OR INABILITY TO CAPTURE FOOTAGE; OR F) FOR ANY AMOUNTS THAT, TOGETHER WITH AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE FEES PAID AND/ OR PAYABLE BY CUSTOMER TO FLOCK FOR THE SERVICES UNDER THIS AGREEMENT IN THE TWELVE ( 12) MONTHS PRIOR TO THE ACT OR OMISSION THAT Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 GAVE RISE TO THE LIABILITY, IN EACH CASE, WHETHER OR NOT FLOCK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION OF LIABILITY OF SECTION ONLY APPLIES TO THE EXTENT ALLOWED BY THE STATE OF CALIFORNIA. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE FOREGOING LIMITATIONS OF LIABILITY SHALL NOT APPLY ( I) IN THE EVENT OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR ( II) TO ANY INDEMNIFICATION OBLIGATIONS. 9. 2 Responsibility. Each Party to this Agreement shall assume the responsibility and liability for the acts and omissions of its own employees, officers, or agents, in connection with the performance of their official duties under this Agreement. Each Party to this Agreement shall be liable for the torts of its own officers, agents, or employees. 9. 3 Flock Indemnity. Flock shall indemnify and hold harmless Customer, its agents and employees, from liability of any kind, including claims, stop notices, costs ( including defense) and expenses, on account of: ( i) any alleged or actual infringement of any intellectual property or proprietary right, including any copyrighted material, patented or unpatented invention, articles, device or appliance manufactured or used in the performance of this Agreement, or related to the Flock Services; or ( ii) any damage, injury, or death of any person, or damage to property, caused by, related to or arising out of installation of Flock Hardware by Flock or any of its employees, contractors, or agents, except for where such damage or injury was caused solely by the negligence of the Customer or its agents, officers or employees. Should Customer or any Authorized End User be prevented from using the Flock Services or any of the Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Flock Hardware as a result of any such infringement claim or violation, at Flock' s expense, Flock shall ( i) obtain all rights for Customer and Authorized End Users to utilize the Services and/ or Flock Hardware; ( ii) provide alternate services or hardware providing substantially the same functionality; or ( iii) refund all amounts prepaid to Flock, remove all Flock Hardware, and restore each Flock Hardware site to its original condition, reasonable wear and tear excepted. 10. INSTALLATION SERVICES AND OBLIGATIONS 10. 1 Ownership of Hardware. Flock Hardware is owned and shall remain the exclusive property of Flock. Title to any Flock Hardware shall not pass to Customer upon execution of this Agreement, except as otherwise specifically set forth in this Agreement. Except as otherwise expressly stated in this Agreement, Customer is not permitted to remove, reposition, re- install, tamper with, alter, adjust or otherwise take possession or control of Flock Hardware, unless otherwise necessary in order to protect the public health or safety, or to safeguard Flock Hardware until retrieval by Flock. Customer agrees and understands that in the event Customer is found to engage in any of the foregoing restricted actions, all warranties herein shall be null and void, and this Agreement shall be subject to immediate termination for material breach by Customer. Customer shall not perform any acts which would interfere with the retention of title of the Flock Hardware by Flock. Should Customer default on any payment of the Flock Services for not less than sixty ( 60) days after service of a written demand for payment, Flock may remove Flock Hardware at Flock' s discretion and Flock shall restore all Customer property to substantially its original condition, wear and tear excepted. Such removal, if made by Flock, shall not be deemed a waiver of Flock' s rights to any damages Flock may sustain as a result of Customer' s Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 default and Flock shall have the right to enforce any other legal remedy or right. 10. 2 Deployment Plan. Flock shall advise Customer on the location and positioning of the Flock Hardware for optimal product functionality, as conditions and locations allow. Flock will collaborate with Customer to design the strategic geographic mapping of the location( s) and implementation of Flock Hardware to create a deployment plan Deployment Plan"). In the event that Flock determines that Flock Hardware will not achieve optimal functionality at a designated location, Flock shall have final discretion to veto a specific location and will provide alternative options to Customer. Customer may also reject any location proposed by Flock, without penalty. Customer hereby grants Flock a right of entry in and onto Customer' s property to perform Installation Services, pursuant to an agreed- upon written schedule and during normal business hours. Notwithstanding any other provision herein, Customer' s obligation to commence payment of subscription fees shall not commence unless and until Installation Services are complete and accepted in writing by Customer 10. 3 Changes to Deployment Plan. After installation of Flock Hardware, any subsequent requested changes to the Deployment Plan, including, but not limited to, relocating, re- positioning, adjusting of the mounting, removing foliage, replacement, changes to heights of poles will incur a fee according to the reinstall fee schedule located at ( https:// www.flocksafety.com/ reinstall- fee schedule), unless any such changes are necessary to comply with any law or regulation, or to minimize any risk to the public health or safety, and not due to any acts, omissions or requests of Customer. Customer will receive prior notice and confirm approval of any such fees. 10. 4 Customer Installation Obligations. Customer is responsible for any Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 applicable supplementary cost as described in the Customer Implementation Guide (" Customer Obligations"), provided to and acknowledged in writing by Customer. Customer represents and warrants that it has, or shall lawfully obtain, all necessary right title and authority and hereby authorizes Flock to install the Flock Hardware at the designated locations and to make any necessary inspections or maintenance in connection with such installation. 10. 5 Flock' s Obligations. Installation of any Flock Hardware shall be installed in a professional manner within a commercially reasonable time from the Effective Date of this Agreement, and in compliance with All Applicable Laws including, but not limited to, the current California Building Code and California Electrical Code. Upon termination or expiration of this Agreement, the Flock Hardware shall be removed and Flock shall restore the location to its original condition, ordinary wear and tear excepted. Flock will continue to monitor the performance of Flock Hardware for the length of the remainder of the Term, if any. Flock may use a subcontractor or third party to perform certain obligations under this Agreement, provided that Flock' s use of such subcontractor or third party shall not release Flock from any duty or liability to fulfill Flock' s obligations under this Agreement. 11. MISCELLANEOUS 11. 1 Compliance with Laws. Parties shall comply with all Applicable Laws, policies and ordinances and their associated record retention schedules, including responding to any subpoena request( s). Furthermore, the Installation Services constitute " public works" as defined in California Labor Code Section 1720. As to any and all work performed by Flock constituting public works, Flock shall comply with all California Labor Code requirements set forth in Exhibit " B" attached hereto Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 11. 2 Severability. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect. 11. 3 Assignment. This Agreement is not assignable, transferable or sublicensable by either Party, without prior consent. Notwithstanding the foregoing, either Party may assign this Agreement, without the other Party' s consent, ( i) to any parent, subsidiary, or affiliate entity, or ( ii) to any purchaser of all or substantially all of such Party' s assets or to any successor by way of merger, consolidation or similar transaction. 11. 4 Entire Agreement. This Agreement, together with the Order Form( s), the reinstall fee schedule ( https:// www. flocksafetv.com/ reinstall- fee- schedule). and attached Exhibits, each of which are incorporated by reference herein, are the complete and exclusive statement of the mutual understanding of the Parties and supersedes and cancels all previous or contemporaneous negotiations, discussions or agreements, whether written and oral , communications and other understandings relating to the subject matter of this Agreement, and that all waivers and modifications must be in a writing signed by both Parties, except as otherwise provided herein. None of Customer's purchase orders, authorizations or similar documents will alter the terms of this Agreement, and any such conflicting terms are expressly rejected. Any agreed upon purchase order is subject to these terms. Customer shall not be bound by the terms of any " click- through" end user license or similar online agreement or terms and conditions unless provided to and approved in writing in advance by Customer. In the event of any conflict of terms found in this Agreement or any other terms and conditions, the terms of this Agreement shall prevail. Customer agrees that Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Customer' s purchase is neither contingent upon the delivery of any future functionality or features nor dependent upon any oral or written comments made by Flock with respect to future functionality or feature. 11. 5 Relationship. No agency, partnership, joint venture, or employment is created as a result of this Agreement and Parties do not have any authority of any kind to bind each other in any respect whatsoever. Flock shall at all times be and act as an independent contractor to Customer. 11. 6 Governing Law; Venue. This Agreement shall be governed by the laws of the State of California The Parties hereto agree that venue shall be in the Superior Court of the County of Orange, California, or the United States District Court, Central District, State of California. The Parties agree that the United Nations Convention for the International Sale of Goods is excluded in its entirety from this Agreement. 11. 7 Special Terms. Flock may offer certain special terms which are indicated in the proposal and will become part of this Agreement, upon Customer' s prior written consent and the mutual execution by authorized representatives Special Terms"). To the extent that any terms of this Agreement are inconsistent or conflict with the Special Terms, the Special Terms shall control. 11. 8 Publicity. Provided Customers consent is first obtained, Flock may reference and use Customer' s name and trademarks and disclose the nature of the Services in business and development and marketing efforts. 11. 9 Feedback. If Customer or Authorized End User provides any suggestions, ideas, enhancement requests, feedback, recommendations or other information relating to the subject matter hereunder, Customer or Authorized End User hereby assigns to Flock all right, title and interest ( including intellectual property Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 rights) with respect to or resulting from any of the foregoing. 11. 10 Export. Customer may not remove or export from the United States or allow the export or re- export of the Flock IP or anything related thereto, or any direct product thereof in violation of any restrictions, laws or regulations of the United States Department of Commerce, the United States Department of Treasury Office of Foreign Assets Control, or any other United States or foreign Customer or authority. As defined in Federal Acquisition Regulation (" FAR"), section 2. 101, the Services, the Flock Hardware and Documentation are commercial items" and according to the Department of Defense Federal Acquisition Regulation (" DFAR") section 252. 2277014( a)( 1) and are deemed to be " commercial computer software" and " commercial computer software documentation." Flock is compliant with FAR Section 889 and does not contract or do business with, use any equipment, system, or service that uses the enumerated banned Chinese telecommunication companies, equipment or services as a substantial or essential component of any system, or as critical technology as part of any Flock system. Consistent with DFAR section 227. 7202 and FAR section 12. 212, any use, modification, reproduction, release, performance, display, or disclosure of such commercial software or commercial software documentation by the U. S. Government will be governed solely by the terms of this Agreement and will be prohibited except to the extent expressly permitted by the terms of this Agreement. 11. 11 Headings. The headings are merely for organization and should not be construed as adding meaning to the Agreement or interpreting the associated sections. 11. 12 Authority. Each of the below signers of this Agreement represent that they understand this Agreement and have the authority to sign on behalf of Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 and bind the Parties they are representing. 11. 13 Conflict. In the event there is a conflict between this Agreement and any applicable statement of work, or Customer purchase order, this Agreement controls unless explicitly stated otherwise. 11. 14 Morality. In the event either party hereto or its agents become the subject of an indictment, contempt, scandal, crime of moral turpitude or similar event that would negatively impact or tarnish the other party' s reputation, the innocent party shall have the option to terminate this Agreement upon prior written notice to the other. 11. 15 Notices. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered; when receipt is electronically confirmed, if transmitted by email; the day after it is sent, if sent for next day delivery by recognized overnight delivery service; and upon receipt, if sent by certified or registered mail, return receipt requested. All notices will be provided to the email or mailing address listed in the Order Form. 11. 16 Non- Appropriation. Notwithstanding any other provision of this Agreement, all obligations of the Customer under this Agreement which require the expenditure of funds are conditioned on the availability of funds appropriated for that purpose. Customer shall have the right to terminate this Agreement for non-appropriation with thirty ( 30) days written notice without penalty or other cost. These Terms and Conditions are subject to change. Docusign Envelope ID: 06B86837-CDCD-4A1E-A16C-6B1843225964 Agenda Item G AGENDA STAFF REPORT DATE:April 13, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Barbara Arenado, Director of Finance/City Treasurer SUBJECT:Fiscal Year 2025-26 Mid-Year Budget Update and Consideration of Proposed Amendment to the Fiscal Year 2025-26 Budget ________________________________________________________________ SUMMARY OF REQUEST: That the City Council receive and file the Fiscal Year 2025-26 Mid-Year Budget Update and adopt Resolution 7757 to approve Budget Amendment BA #26-10-01. BACKGROUND AND ANALYSIS: This report provides a mid-year budget update (second quarter) of the City’s financial position for Fiscal Year (FY) 2025-26. To develop the mid-year update, the Finance Department meets with City departments to gather revenue projections, reviews and analyzes data with the City’s consultants, and evaluates the potential fiscal impacts. Preparing for an uncertain future requires consideration of a wide range of factors, including direct and indirect influences on the City. This report represents the City’s best estimates based on the most current information. The FY 2025-26 Mid-Year Budget Update Summary (Attachment B) is based on actuals from July 1, 2025 through December 31, 2025. The economy continues to experience volatility, with inflation moderating but remaining elevated and uncertainty surrounding U.S. economic policy affecting local financial conditions. In addition, geopolitical instability, including the ongoing conflict involving Iran, has contributed to rising energy costs and increased market uncertainty with no clear timeline for resolution. Gasoline prices in California have recently exceeded $6 per gallon in some areas, increasing operating costs for residents, businesses, and City services. These factors may impact revenues, expenditures, and overall budget performance. At this mid-year point, it is too early to determine the full year-end impact of these conditions, and it remains important for City staff to closely monitor economic trends, fuel costs, and federal and international developments. Property tax revenues are tracking at or slightly above budgeted levels at mid- year, reflecting increased assessed valuations and the timing of receipts. In Page 2 2 2 7 1 contrast, sales tax revenues are trending below prior-year levels and budget expectations, reflecting softer activity in business-industry purchases, cautious consumer spending, and pressures in retail and restaurant sectors. Transient Occupancy Tax (TOT) revenues remain steady, with the City’s three hotels near capacity. Additionally, the implementation of SB 346 will improve monitoring of short-term rentals, supporting compliance and helping to protect TOT revenues. Overall, major General Fund revenues are meeting or modestly exceeding mid- year expectations, with certain categories, such as Charges for Services, performing above budget. On the expenditure side, salaries, benefits, and retirement costs are generally trending at budget. The City continues to prioritize filling vacant positions, particularly in public safety, and has seen strong participation in seasonal lifeguard positions to support beach operations. Maintenance and Operations expenditures, including major contracts for refuse, insurance, and street maintenance, are anticipated to remain at or near budget, while legal fees have increased due to franchise matters, land use issues, public records requests, and other legal needs, prompting a proposed mid-year increase funded from the General Fund balance. These efforts ensure the continued delivery of essential services while maintaining fiscal stability. Overall, Seal Beach’s financial position at mid-year remains stable, with revenues generally meeting expectations and expenditures controlled across departments. While sales tax softness and elevated legal costs present fiscal pressures, the City remains committed to responsible financial management, monitoring economic trends, and maintaining service levels that support public safety, mobility, and quality of life for the community through the remainder of FY 2025-26. Further information is included in the Mid-Year Budget Update Summary (Attachment B). The City is continuing negotiations with the bargaining units and further adjustments may be necessary in the FY 2025-26 Budget. When those updates are available, staff will bring forth to the City Council for approval. The Mid-Year Report also documents immediate demands that were not included in the FY 2025-26 Budget. Projects and emergency needs have arisen and are outlined below and provided in the Budget Amendment Detail Report BA #26-10-01 (Attachment C). Citywide Legal Fees/General Liability The first eight months of the fiscal year have been atypical which has generated a higher-than-anticipated demand for legal services. The increases are primarily due to complex land matters, franchise issues, water and sewer rate work, public records requests, and other specialized legal matters and general liability. These items represent additional or special services that fall outside the scope of our current legal and general liability services agreements. As a result, an increase to the legal and general liability services budget is necessary to accommodate these unanticipated needs for the remainder of the fiscal year. Page 3 2 2 7 1 Fire Services During budget adoption the City received an updated contract charge for fire services. As a result, the adopted budget did not reflect the revised cost. This mid- year adjustment is necessary to fund the increased contract amount and ensure adequate coverage for fire services for the remainder of the current fiscal year. Fire services provided under this agreement include fire suppression and emergency response, paramedic and emergency medical services, rescue operations, fire prevention and inspection services, public education and outreach, and administrative support necessary to maintain service levels for the City. Enhanced Mobility Service for Seniors and Individuals with Disabilities (EMSD) Orange County Transportation Authority (OCTA)’s EMSD program provides funding for capital (vehicles) and operating assistance (shuttle services) to help seniors and people with disabilities when standard public transit is insufficient. The City of Seal Beach applied in 2024 and was awarded a grant of up to $50,000 each year for the next two years, which is intended to expand the Senior Transportation Program to also include Individuals with Disabilities for the 2025-26 Fiscal Year. The existing Senior Transportation Program is funded by several sources: The general fund, the M2 SMP Funding from OCTA, and this new EMSD Grant which comes in the form of reimbursements. Due to the program having multiple sources of funding, it is necessary to create separate account codes to distinguish between the funding sources. New accounts were created: Revenue account 101-400- 0016-42201 and Expense Account 101-400-0016-52501 with the appropriate funding. Seal Beach Tennis and Pickleball Center Contract Professional (Junior Tennis Academy/Camps) Prior to August 2025, payments to the Junior Tennis Coordinator for the Junior Tennis Academy and Summer Camps were recorded against a revenue GL account (101-400-0074-43090) rather than the appropriate expense account (101- 400-0074-51280). This accounting practice was reflected in the adopted budget for the current fiscal year. Beginning in August 2025, these payments were correctly recorded in the expense account. This mid-year budget adjustment is necessary to increase the appropriate expenditure account and align the budget with the corrected accounting treatment for these program-related contract services. Council Chamber Upgrades The City Council approved Chamber viewing upgrades. As the City makes improvements within SBTV to upgrade the production of Council Meetings and other boards and commissions it is the goal to have continuity and upgrade the devices used in Council Chambers to monitor the council meetings. The current devices being used by the City are inadequate and no longer offer software upgrades. Staff would like to integrate new devices and device peripherals simultaneously with already approved planned upgrades. Page 4 2 2 7 1 ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: In an abundance of caution, the City Attorney has recused himself from reviewing or approving this item because it addresses the City Attorney’s budget. FINANCIAL IMPACT: Budget Amendment BA #26-10-01 will allocate current fiscal year impacts from the General Fund unassigned fund balance and from Seal Beach Fund 214. The recommended budget adjustments explanations are included above and in the Budget Amendment Detail Report BA #26-10-01 (Attachment C). STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council receive and file the Fiscal Year 2026-27 Mid-Year Budget Update and adopt Resolution 7757 to approve Budget Amendment BA #26-10-01. SUBMITTED BY: NOTED AND APPROVED: Barbara Arenado Patrick Gallegos Barbara Arenado, Director of Finance/City Treasurer Patrick Gallegos, City Manager ATTACHMENTS: A. Resolution 7757 B. Mid-Year Budget Update Summary C. Budget Amendment Detail Report BA #26-10-01 RESOLUTION 7757 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING FISCAL YEAR 2025-2026 MID-YEAR BUDGET AMENDMENT BA #26-10-01 WHEREAS, on June 9, 2025, the City Council unanimously approved Resolution 7626, adopting the City’s Fiscal Year 2025-2026 Budget; and, WHEREAS, on April 13, 2026, the Mid-Year Budget Review was presented to City Council; and, WHEREAS, unforeseen situations and conditions, including changes in operations or funds received, since the City Council’s adoption of the Fiscal Year 2025-2026 Budget have brought about the need to amend certain items within the budget. NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine and order as follows: Section 1. The City Council hereby approves Budget Amendment BA 26-10-01 to modify the Fiscal Year 2025-2026 Budget. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 13th day of April 2026 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Lisa Landau, Mayor ATTEST: Gloria D. Harper, City Clerk 1 1 0 6 7 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 7757 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 13th day of April 2026. Gloria D. Harper, City Clerk 1 | P a g e MID-YEAR BUDGET UPDATE July - December 2025 The Mid-Year Budget Update for Fiscal Year (FY) 2025-26 provides an analysis of General Fund revenues and expenditures based on July 1, 2025, through December 31, 2025, actuals with a comparison to prior year. SUMMARY The FY 2025-26 Mid-Year Budget Update provides an overview of General Fund revenues and expenditures based on actual financial activity from July 1 through December 31, 2025. Charts are reflected through January where applicable. This report reflects the first half of the fiscal year and compares results to the prior year. Through December/January, the City’s revenue performance is generally on track, with key General Fund sources trending at or above budget expectations. Property tax, the largest revenue source at 34 percent of the General Fund, totaled $9.1 million year-to-date, slightly above budget due to the timing of receipts and increased assessed valuations. According to HdL, the City’s gross receipts for October through December were 18.6% below the same period in 2024, or 12.0% lower after adjusting for reporting aberrations, reflecting softer activity in business-industry purchases, cautious SOURCES ADOPTED BUDGET YTD-ACTUAL %ADOPTED BUDGET YTD-ACTUAL % 01-PROPERTY TAXES 15,390,000 5,539,754 36%16,327,000 6,509,908 40% 02-SALES AND USE TAXES 11,891,183 3,454,643 29%14,643,000 4,896,399 33% 03-UTILITY USERS TAX 5,100,000 2,308,720 45%5,440,000 2,289,721 42% 04-TRANSIENT OCCUPANCY TAX 1,850,000 556,046 30%1,890,000 593,316 31% 05-FRANCHISE FEES 1,108,000 237,016 21%1,160,000 221,087 19% 06-OTHER TAXES 829,800 616,830 74%810,000 353,279 44% 07-LICENSES AND PERMITS 872,000 609,284 70%861,000 630,796 73% 08-INTERGOVERNMENTAL 173,800 27,772 16%241,000 67,094 28% 09-CHARGES FOR SERVICES 3,114,700 1,706,830 55%3,315,450 2,123,732 64% 10-FINES AND FORFEITURES 1,598,800 690,014 43%1,582,300 577,670 37% 11-USE OF MONEY AND PROPERTY 750,000 634,092 85%953,000 838,499 88% 12-ALLOCATED COSTS - - - - 13-OTHER REVENUES 85,600 229,459 268%147,330 106,102 72% TOTAL OPERATING REVENUE 42,763,883 16,610,460 39%47,370,080 19,207,604 41% 14-TRANSFERS IN 1,220,781 1,220,781 100%822,000 822,000 100% TOTAL REVENUES & SOURCES 43,984,664 17,831,241 41%48,192,080 20,029,604 42% USES, BY TYPE 01-REGULAR SALARIES 10,269,416 4,873,918 47%10,973,000 4,816,335 44% 02-OTHER PAY AND BENEFITS 4,780,729 2,416,169 51%5,837,084 2,586,706 44% 03-RETIREMENT 5,608,884 4,565,247 81%6,281,829 5,084,124 81% 04-MAINTENANCE AND OPERATIONS 21,324,656 10,937,001 51%22,338,460 11,985,541 54% 05-CAPITAL OUTLAY - - 5,000 2,031 41% 06-DEBT EXPENSE 91,811 - 0%- - TOTAL OPERATING EXPENDITURES 42,075,496 22,792,336 54%45,435,373 24,474,737 54% 07-TRANSFERS OUT 12,253,396 (141,226) -1%14,442,480 517,945 4% TOTAL EXPENDITURES & USES 54,328,892 22,651,110 42%59,877,853 24,992,681 42% FY 2024-2025 FY 2025-2026 General Fund Summary 2 | P a g e MID YEAR BUDGET UPDATE consumer spending, and pressures in food-drug and restaurant sectors, partially offset by modest gains in fuel, auto-transportation, and building-construction. Charges for Services are trending positively, supported by strong participation in recreational programs and development-related activity. While aquatics revenues are slightly below expectations, higher-than- anticipated planning and plan check fees are offsetting this shortfall. Fines and forfeitures are below budget due to vacancies in parking enforcement positions and operational focus on higher-priority public safety needs. Transient Occupancy Tax continues to perform steadily, with the City’s three hotels near or at capacity. Implementation of SB 346 is expected to enhance short-term rental monitoring and support compliance for this revenue stream. Franchise fees and other miscellaneous revenues remain on track. On the expenditure side, regular salaries and other pay and benefits are trending at budget. Retirement costs reflect ongoing required CalPERS contributions to address unfunded liabilities. Prepayment of the unfunded liability portion continues to provide substantial savings. Maintenance and Operations, representing 46.4 percent of the General Fund, are anticipated to come in at or near budget. Major expenditures include the Fire Contract, refuse services, insurance, West-Comm, and street maintenance contracts. We are proposing a significant increase in legal fees, funded from the General Fund balance, due to franchise matters, complex legal issues, land use matters, public records requests, and other legal needs. These costs exceed the adopted budget and these adjustments ensures the City has adequate resources to address ongoing and anticipated legal obligations for the remainder of the fiscal year. Overall, the City’s financial position at mid-year reflects stable revenue performance and controlled expenditures, supporting continued alignment with the adopted FY 2025-26 budget. Although this is a mid-year report, January data is included when available. PROPERTY TAX revenues, the City’s largest General Fund revenue source, totaled $6.5 million through December and $9.1 million through January, coming in slightly above budget. Revenues are higher compared to the same period in the prior fiscal year, primarily due to the timing of receipts, and are expected to remain within budget for the fiscal year. Growth in property tax revenues is largely attributable to increases in overall sales activity and market values, which have contributed to higher assessed valuations. According to the Orange County Assessor, the City’s total assessed valuation is $7.9 billion, representing a 4.3 percent increase over the prior year. The median home price during this period was approximately $1.4 million. While median home prices have increased compared to the prior year, the number of sales transactions has declined. This decrease in transaction volume is expected to be reflected in the FY 2026-27 tax roll and may moderate year-over-year growth. Property tax receipts are heavily concentrated in December and April due to the timing of residential property tax payments. Overall, property tax revenues account for approximately 34 percent of the General Fund’s annual operating revenues and are projected to remain on budget. REVENUES 3 | P a g e MID YEAR BUDGET UPDATE SALES TAX is collected by the State and advanced to the City monthly with funds distributed two months following the period the revenue is earned. According to HdL, the City’s tax consultant, the City’s gross receipts from October through December were 18.6% below the fourth quarter sales period in 2024. Excluding reporting aberrations, actual sales were down 12.0% as compared to the same quarter last year (See chart below). Revenue from the business-industry sector declined as buyers acted more deliberately, delaying purchases, reducing inventory levels, and seeking higher-level approvals to navigate economic uncertainty. General consumer goods showed some continued spending at the 2025 year-end, it was noted as "tepid" or "lukewarm" compared to the high growth rates of previous years. Overall, food-drug retailers faced pressure from pharmacy closures resulting in a slight decrease in totals compared to the year-ago period. New business additions provided a boost in receipts for the fuel-service station category. The restaurant-hotel category came up flat as the U.S. restaurant industry faced significant challenges, characterized by slowing sales growth, declining traffic, and reduced consumer discretionary spending due to inflation. Both auto-transportation and building-construction showed modest growth as consumers dial back spending. Net of aberrations, taxable sales for Orange County declined 9.5% over the comparable time-period; the Southern California region was down 0.6%. Source: HdL, Sales and Use Tax 4 | P a g e MID YEAR BUDGET UPDATE The chart above shows sales tax revenue inclusive of Measure GG revenue which was not in effect the prior fiscal year. UTILITY USERS TAX (UUT) is 11 percent of the FY 2025-26 Budget. UUT is charged to customers of electric, natural gas, telecommunications and pre-paid wireless. Revenues in this category are impacted by consumption levels and have experienced strong growth from prior periods due to return to work, increases in utilities, and businesses fully operational. For the first three months of the fiscal year electric Utility Users Tax revenues were trending below both prior year levels and budget assumptions. However, performance through January indicates that revenues have returned to alignment with budget expectations and are anticipated to be at budget. Staff will continue to monitor trends closely to ensure revenues remain on track through year-end. Gas tax revenues have increased compared to the prior year, primarily due to rate increases implemented last year. Ongoing shifts in consumer behavior continue to impact telecommunications-related revenues. The bundling of data with voice and text services in cellular plans has reduced taxable wireless revenue, while 5 | P a g e MID YEAR BUDGET UPDATE the continued migration from landlines to mobile devices has further declined wired revenue streams. Despite these trends, increases in utility rates are expected to support revenues and continue influencing overall Utility Users Tax performance for the remainder of the fiscal year. CHARGES FOR SERVICES are 7 percent of the FY 2025-26 Budget. Charges for services are used to recover costs of programs for specific end users. Programs provided through Community Services are typically subsidized by the General Fund to encourage participation. Charges for Services revenues are performing favorably, with overall receipts exceeding budget through the half of the year and are projected to remain elevated throughout the remainder of the fiscal year. Charges for Services revenues are trending positively at mid-year, supported by strong demand in recreational programs and development-related activity. Tennis and pickleball revenues, which were below budget in the first quarter, have rebounded due to continued growth in participation and increased interest in pickleball. Membership levels have risen considerably, and second-quarter renewals have remained strong, with the January increase reflecting the timing of annual membership payments. Aquatics revenues are currently below expectations; however, this shortfall is being offset by higher-than- anticipated revenues in planning and plan check services. Continued activity in development review, combined with sustained demand for tennis and pickleball programs, is contributing to overall positive performance. As a result, Charges for Services revenues are maintaining an upward trajectory at mid-year. 6 | P a g e MID YEAR BUDGET UPDATE FINES & FORFEITURES is primarily parking revenue and is 3 percent of the FY 2025-26 Budget. Fines and forfeitures in the City of Seal Beach budget represent revenue collected from penalties imposed for violations of local laws, ordinances, and regulations. These include traffic citations, parking fines, code enforcement penalties, and other municipal violations. Additionally, forfeitures may include assets seized in legal proceedings or funds from unclaimed property. This revenue source helps offset costs associated with public safety, law enforcement, and municipal court operations, with the goal of promoting compliance with local regulations. Fines and forfeitures revenues are trending below budget at mid-year, primarily due to vacancies in parking enforcement positions. Public safety remains the City’s first priority, and available staff resources have been directed toward higher-priority service needs, including a significant increase in demand for animal control services. This shift in operational focus, combined with reduced staffing levels, has limited the City’s ability to conduct consistent parking enforcement resulting in lower-than-anticipated revenue. Recruitment efforts are ongoing to fill vacant positions and restore regular enforcement coverage; however, until staffing levels are fully stabilized, citation activity is expected to remain below historical averages. Once positions are filled and service demands normalize, fines and forfeitures revenues are anticipated to improve. Staff will continue to closely monitor both service demands and revenue performance and will adjust projections as needed. 7 | P a g e MID YEAR BUDGET UPDATE TRANSIENT OCCUPANCY TAX accounts for 4 percent of the General Fund. TOT revenue is trending slightly higher year-to-date through January compared to the prior year. The City’s three hotels continue to perform in line with expectations and remain near capacity, supporting stable TOT performance. While this revenue source remains inherently volatile and sensitive to broader economic conditions, current activity indicates steady demand for overnight accommodations. The City receives TOT payments following the end of each quarter, which may result in timing fluctuations throughout the fiscal year. Beginning January 1, 2026, Senate Bill 346 (SB 346), the Short-Term Rental Facilitator Act, is expected to assist the City in better monitoring short-term rentals. The legislation requires short-term rental platforms, such as Airbnb and Vrbo, to provide host and listing data to local jurisdictions, improving transparency, supporting enforcement of local regulations, and helping ensure appropriate TOT collection. Implementation of SB 346 is anticipated to strengthen compliance and help protect this revenue source moving forward. 8 | P a g e MID YEAR BUDGET UPDATE FRANCHISE FEES are imposed on various public utilities and account for 2 percent of the General Fund. The franchise grants the public utilities the right to use public property for system infrastructure such as lines and pipes. It also grants exclusive rights to provide cable television within the City. Revenues are typically received in the later part of the fiscal year, with the largest payment received in April. Franchise fees remain relatively stable and is anticipated to align with budget. OTHER REVENUE is made up of a variety of relatively small revenue categories including Licenses and Permits, Intergovernmental, Use of money and Property, and Miscellaneous Public Safety Revenues. Other revenue includes one-time payments that the City may receive. Staff anticipates other revenue will meet budget projections and fluctuations are due to timing of receipts. 9 | P a g e MID YEAR BUDGET UPDATE REGULAR SALARIES the first half of the year were trending at budget as nearly all positions throughout the City have been filled. Fluctuations are due to timing of payments. OTHER PAY & BENEFITS include part-time salaries, medical benefits, insurance, the City’s health and wellness program, tuition reimbursement, employee benefits and overtime. Medical Benefits, Insurance, part-time salaries, and overtime comprise most of this category. Overtime is well monitored in the City but fluctuates based on unanticipated events and emergencies. For the first half of the fiscal year, other pay and benefits is at budget and is anticipated to remain at budget. EXPENDITURES 10 | P a g e MID YEAR BUDGET UPDATE RETIREMENT The City offers a defined benefit plan through California Employees’ Public Retirement System (CalPERS) to manage the pension and health benefits. CalPERS is the largest pension fund in the nation offering benefits to 1.6 million public employees, retirees, and their families. The FY 2025-26 budget includes the required increases estimated by CalPERS to pay down the unfunded actuarial liabilities of all plans. Funding for these payments is included in the City’s operating budget, spread across several funds, including the General Fund. The City’s unfunded liabilities and the payments required to pay off those liabilities are calculated by CalPERS’ actuarial staff. These calculations are made annually and can change the amount of the City’s unfunded liabilities based on a number of factors, including variances from expected results relative to investment returns and employee demographics, as well as any changes in the assumptions that CalPERS uses to make their calculations. Over the last couple of years, CalPERS has phased in the reduction in their investment return assumption, taking it from 7.5 percent to 6.8 percent. This change and CalPERS negative returns on investments has resulted in significant increases in the City’s unfunded liabilities in recent years, in spite of the fact that the City has been making its required payments on its unfunded liabilities. This change in investment return assumptions is also a primary factor in the projected increases in future contributions that will be required to pay off the City’s unfunded pension liabilities. These increases will hinder the City’s ability to fund other services. The California Public Employees’ Pension Reform Act (PEPRA) of 2013 became effective on January 1, 2013. PEPRA primarily affects new members. PEPRA’s primary areas of impact concern limiting benefit formulas, increasing the time of final average compensation period, pensionable compensation, setting a salary cap and increasing the employees’ retirement contributions. Termination of the City’s contract with CalPERS would require the payment of a termination fee to guarantee the payment of pension obligations that have already accrued. This fee would be several times the current unfunded pension liability. The City prepays the unfunded liability portion at the beginning of the fiscal year for substantial savings. The City has additionally made $250,000 in additional discretionary payments to pay down the unfunded liability as well as has set an additional payment in FY 2025-26 for $250,000. Payment timing is dependent on market conditions. 11 | P a g e MID YEAR BUDGET UPDATE Maintenance and Operations The City engages in contracts with vendors to avail various services, including specialized consulting, legal, financial, landscape and facility maintenance, and program support, on a contractual basis. Maintenance and Operations constitute 46.4 percent of the overall General Fund Budget for FY 2025-26. The primary General Fund M&O expenditures for FY 2025-26 include $7.3 million for Fire Contract services (which accounts for 33 percent of M&O), $1.4 million for Refuse, $3.2 million for General Liability, Property Insurance, and Workers Compensation, $1.0 million for West-Comm Contract services, and $1.1 million for Street Maintenance Contracts. Increases in contract costs are mainly attributed to State-mandated prevailing and/or minimum wage hikes, alongside the integration of additional City infrastructure and/or emergency repairs (such as streets, trees, community centers, signalized intersections, etc.). The spike in December of 2024 and July 2025 is due to timing of payments for insurance. Maintenance and Operations expenditures are overall anticipated to come in at or near budget at year-end with the exclusion of legal and general liability services. Departments have experienced lower-than-anticipated spending in areas such as contractual services, supplies, and routine maintenance. Staff will continue to monitor spending levels across departments to ensure Maintenance and Operations expenditures remain within overall budget appropriations. Legal services and general liability costs have risen above anticipated normal demands due to complex land use, franchise, and specialized legal matters. As a result, the City is requesting a budget adjustment funded from General Fund balance to address these increased costs. Additional adjustments include funding for updated fire services contract charges and minor corrections to accounting structure, including grant-related accounts, program cost allocations, and Council Chamber technology upgrades. Budget Amendment BA #26-10-01 Description Account Revised/Adopted Budget Proposed Budget Budget (diff) Amendment Disabilities Transportation Program - EMSD 101-400-0016-42201 $ - $ 29,600.00 $ 29,600.00 Disabilities Transportation - EMSD 101-400-0016-51281 $ 16,000.00 $ 37,000.00 $ 21,000.00 Tennis Center Services 101-400-0074-43090 $ 500,000.00 $ 560,000.00 $ 60,000.00 Contract Professional - SBTPC 101-400-0074-51280 $ 14,000.00 $ 74,000.00 $ 60,000.00 Contract Professional - Council Chamber Upgrades 214-150-0019-51280 $ 30,000.00 $ 65,000.00 $ 35,000.00 Legal - Personnel Matters - LCW 101-130-0015-51961 $ 120,000.00 $ 300,000.00 $ 180,000.00 Legal - Litigation Services 101-130-0015-51920 $ 75,000.00 $ 285,000.00 $ 210,000.00 Legal - Other Attorney Services 101-130-0015-51950 $ 65,000.00 $ 315,000.00 $ 250,000.00 Legal General Liability - CJPIA 101-110-0018-51810 $ 1,238,524.00 $ 1,338,524.00 $ 100,000.00 Intergovernmental - Fire Services 101-220-0026-51290 $ 7,334,771.00 $ 7,354,928.00 $ 20,157.00 Agenda Item H AGENDA STAFF REPORT DATE:April 13, 2026 TO:Honorable Mayor and City Council THRU:Patrick Gallegos, City Manager FROM:Michael Henderson, Chief of Police SUBJECT:Approving and Authorizing Amendments to the Seal Beach Municipal Code Pertaining to Parking Regulations, the Residential Parking Permit Program, Paid Parking, and Other Regulations ________________________________________________________________ SUMMARY OF REQUEST: That the City Council introduce, waive full reading, and read by title only, Ordinance 1726, an Ordinance of the City of Seal Beach Amending Certain Sections of Chapter 8.15 (Stopping, Standing and Parking) of the Seal Beach Municipal Code (SBMC) to modernize paid parking provisions, establish a residential parking permit program framework, clarify curb-use regulations including daylighting near crosswalks, and make other technical revisions. BACKGROUND AND ANALYSIS: The City’s curbside and off-street parking policies directly affect safety, access, mobility, and the overall customer experience in commercial districts and neighborhoods. Parking is also closely tied to public safety operations—when curb use is orderly and predictable, first responders can access emergencies more quickly, congestion is reduced, and conflicts are minimized. The proposed ordinance updates are part of a broader effort to keep the City’s parking toolbox current, support high compliance through clear rules and modern technology, and maintain an enforcement framework that is practical, fair, and effective. 1) Paid Parking Modernization. The Seal Beach Municipal Code (SBMC) currently references traditional meters and pay stations. The amendment broadens these terms to include contemporary and emerging options such as mobile payment, text-to-pay, and other paid parking methods as approved by the Police Department. Fees will continue to be set by Council resolution, giving policy-makers flexibility to adjust rates or programs without re-opening the code. The update also refines prohibited conduct in paid zones and clarifies that posted signage and official instructions govern the method of payment and proof of payment. Page 2 2 2 1 3 2) Residential Parking Permit (RPP) Program Framework. While demand for residential permits may vary over time, the current code lacks a complete process to create and administer permit zones requested by residents. The ordinance establishes a clear, objective mechanism that the City can activate when it receives a petition initiated by residents, including: Designation criteria (e.g., a resident petition threshold and parking occupancy study); Permit categories (resident, guest, merchant/employee where appropriate, and contractor), issuance, duration, non-transferability, and revocation for misuse; Administrative rules to be adopted by the Police Department to implement day-to-day procedures (application, documentation, and enforcement). This framework prepares the City to respond to emerging conditions—near the beach, schools, or other generators—without committing to any specific district until Council formally establishes one by resolution. Under Vehicle Code Section 22507, the City Council retains the discretion to establish a preferential permit parking district for residents or businesses whether or not a petition is submitted to initiate the process by residents. The City Council may establish a parking permit fee in order to recover the City’s cost of administering the permit program. 3) Stopping/Standing/Parking Clarifications (including Daylighting). The ordinance consolidates and clarifies several curb-use provisions, including aligning local rules with state “daylighting” requirements by prohibiting stopping, standing, or parking within a set distance of marked or unmarked crosswalks in order to improve visibility for pedestrians and drivers. This helps provide a consistent, comprehensible standard for the public and supports safety near intersections. Focus on Compliance and Effective Enforcement: The City’s goal is to achieve high compliance so that spaces turn over appropriately, residents and businesses have access, and mobility is improved. Enforcement remains an essential tool to ensure fairness and predictability. The proposed updates support both aims by clarifying rules, modernizing payment options, and creating a permit pathway where warranted. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. Page 3 2 2 1 3 FINANCIAL IMPACT: There is no immediate appropriation associated with this action. If adopted, any future fee adjustments or costs associated with establishing specific permit districts would return to the City Council by resolution. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council introduce, waive full reading, and read by title only, Ordinance 1726, an Ordinance of the City of Seal Beach Amending Certain Sections of Chapter 8.15 (Stopping, Standing and Parking) of the Seal Beach Municipal Code (SBMC) to modernize paid parking provisions, establish a residential parking permit program framework, clarify curb-use regulations including daylighting near crosswalks, and make other technical revisions. SUBMITTED BY: NOTED AND APPROVED: Michael Henderson Patrick Gallegos Michael Henderson, Chief of Police Patrick Gallegos, City Manager Prepared by: Nick Nicholas, Support Services Bureau Captain ATTACHMENTS: A. Ordinance 1726 B. Redline of Amendments to Existing Code Sections 1 ORDINANCE 1726 AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING CERTAIN SECTIONS OF CHAPTER 8.15 (STOPPING, STANDING AND PARKING) OF THE SEAL BEACH MUNICIPAL CODE TO MODERNIZE PAID PARKING PROVISIONS, ESTABLISH A RESIDENTIAL PARKING PERMIT PROGRAM FRAMEWORK, CLARIFY CURB-USE REGULATIONS INCLUDING DAYLIGHTING NEAR CROSSWALKS, AND MAKE OTHER TECHNICAL REVISIONS THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS: Section 1. Section 8.15.010 (No Parking Areas) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “§ 8.15.010. No Parking Areas. General. It shall be unlawful for the driver of a vehicle to stop, park, or leave standing such vehicle, whether attended or unattended, in any of the following locations, except when necessary to avoid conflict with other traffic or in compliance with th e direction of a police officer, traffic officer, or traffic sign or signal: 1. In an intersection; 2. In a crosswalk; 3. Within twenty (20) feet of any marked or unmarked crosswalk (known as the “daylighting” rule), including curb extensions (bulb-outs), which are sidewalk extensions designed to improve crosswalk visibility and eliminate parking within the daylighting setback; 4. Within a divisional island, unless authorized by signage or markings; 5. In such no parking or restricted parking areas as designated by the city; 6. In such no parking or restricted parking areas as may be defined, designated or established by city council resolution; 7. In violation of any provision of this code or applicable state law; 8. On a sidewalk; 9. On any portion of the area extending from a roadway edge of the curb (or from the highest point of a rolled curb) to the sidewalk; 10. In any area where stopping, standing or parking of vehicles is prohibited as indicated by signs or by red paint upon the curb surface; 2 11. In any area where the stopping, standing or parking of the vehicle would block the entrance to a garage or driveway. This provision shall not apply if the owner or occupant thereof has granted permission; and 12. In the Surfside Colony in any area between the white lines where stopping, standing or parking of the vehicle would constitute a hazard.” Section 2. Section 8.15.070 (Curb Markings) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “§ 8.15.070. Curb Markings. The traffic engineer or designee shall utilize the following curb markings to indicate parking regulations: A. Red: no stopping, standing or parking at any time except as permitted by the Vehicle Code or this Code, and except that a bus may stop in a red zone that is signed or marked as a bus zone. B. Yellow: no stopping, standing or parking during hours designated by signage for any purpose other than loading or unloading of passengers or materials. The period of active passenger loading and unloading shall not exceed 3 minutes, and the period of materials loading and unloading shall not exceed 20 minutes. C. White: no stopping, standing during posted hours for any purpose other than loading or unloading of passengers, or depositing mail in an adjacent mailbox, for a period of time not exceeding 3 minutes. When the zone is in front of a theater, the restrictions shall apply only when the theater is open. When the zone is established at a taxicab stand, taxicabs, rideshare vehicles and automobiles for hire may remain in the zone for 20 minutes. D. Green: no stopping, standing or parking between hours and on days designated by City Council resolution for a period longer than the time indicated on the curb unless otherwise indicated by signs or curb markings. E. Blue: no stopping, standing or parking by any vehicle except vehicles operated by disabled persons that display either a special license plate or a distinguishing placard issued pursuant to state law. F. A licensed driver shall be present in or immediately adjacent to any vehicle stopped for the purpose of active loading or unloading passengers or materials.” 3 Section 3. The definition of “Oversize Vehicle” in Section 8.15.085 (Parking of Oversize Vehicles) of the Seal Beach Municipal Code is hereby amended to read as follows: “Oversize Vehicle: a vehicle or combination of vehicles that exceeds 20 feet in length or 90 inches in width or 90 inches in height exclusive of projecting lights or devices as allowed by Vehicle Code Sections 35109 and 35110. "Oversize vehicle" does not include a sedan or limousine manufactured expressly for carrying 10 or fewer passengers.” Section 4. Section 8.15.105 (Parking Meter and Zones) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “§ 8.15.105. Paid Parking Zones. A. Paid parking zones are hereby established at the off-street municipal parking lots and along Main Street, Ocean Avenue, Central Avenue, and Electric Avenue as delineated on the "City of Seal Beach Parking Meter Zone Map" dated September 23, 2002. Such map is incorporated herein by reference. The City Manager or the designee thereof shall cause paid parking devices to be installed and maintained in all paid parking zones. Paid parking devices include any device used to accept payment for parking, including parking meters, pay stations, web applications, mobile devices, associated signage, and other methods approved by the Police Department. B. The payment to be deposited in paid parking devices, or by other approved methods of payment, the parking time allowed following deposit of payment, the hours during which such deposits are required, and the days of the week and the weeks of the year during which such deposits are required for paid parking in all zones shall be prescribed by city council resolution. C. Paid parking devices in paid parking zones shall be operated according to the posted signs. The paid parking device fees for paid parking zones shall be prescribed by city council resolution. D. No person shall do any of the following: 1. Fail to deposit the paid parking device fee immediately after parking a vehicle in a paid parking zone and for the entire time that person has a vehicle parked in the paid parking zone during the paid parking hours of operation. 2. Deposit in a paid parking device a defaced coin, slug, or other counterfeit currency. 3. Deface, injure, or tamper with a paid parking device. 4 4. Attach a bicycle, newsrack, fabric, handbill, flier, sticker, note, or other article to a paid parking device. 5. Allow a vehicle owned or operated by such person to remain parked at a paid parking space beyond the expired time. 6. Park a vehicle across a line or marking designating a paid parking space. 7. Park a vehicle that does not conform to the maximum vehicle length limit applicable to the lot. 8. Allow a vehicle parked by such person to remain in a paid parking space after receipt of a citation for failure to pay the paid parking fee. A violation of this provision shall occur after passage, from the issuance of the citation, of the parking time limit of the lot. 9. Purchase time for paid parking using any method of payment for the purpose of increasing or extending the parking time of any vehicle beyond the legal parking time which has been established for the parking space or zone adjacent to which said paid parking device is placed. E. The parking of a vehicle at a paid parking space beyond the expired payment time shall constitute prima facie evidence that the vehicle has been parked in such space longer than permitted by this section. F. Mechanical failure of a paid parking device shall be a defense to a citation for failure to pay the paid parking fee, provided that the person cited is not responsible for such failure.” Section 5. Section 8.15.110 (Parking Permits) of the Seal Beach Municipal Code is hereby amended in its entirety to read as follows: “§ 8.15.110. Parking Permits. A. The City Manager or designee shall be authorized and directed to issue, upon written applications, parking permits. Each such permit shall be designated by city council resolution to reflect the particular parking permit parking district as well as the license plate number of the motor vehicle for which it is issued. Consistent with this chapter, the City Manager or designee is authorized to issue such written rules and regulations as he or she deems necessary or appropriate to govern the process and terms for the issuance of parking permits. Rules and regulations shall be available for public review at City Hall and at the Police Department during normal business hours. This section is subject to the following restrictions by neighborhood: 1. Old Town 5 a. On Main Street, Ocean Avenue from Eighth Street to Tenth Street, and Central Avenue from Eighth Street to Tenth Street, residential parking permits may allow 2-hour parking. b. In the municipal parking lots on Main Street, residential parking permits may allow parking between the hours of 12:00 a.m. and 6:00 a.m. c. In the Eighth Street city employee parking lot south of Central Avenue, residential parking permits may allow parking between the hours of 12:00 a.m. and 6:00 a.m. d. In the library lot, parking permits may allow residential parking between the hours of 12:00 a.m. and 6:00 a.m. B. Parking permits may be issued in the following categories: 1. Residential Parking Permit. Any city resident living within an approved residential parking permit area may purchase a residential parking permit. Applicants shall submit their name, address, proof of residence and the make, model and license number of each vehicle. Permits shall be validated as directed by the city. 2. Guest Parking Permit. Any city resident living within an approved residential parking permit area may purchase guest parking permits. Applicants shall submit their name, address and proof of residence. Permits shall be validated as designated by the city. Permits shall be valid within timeframes designated by the city. 3. Merchant/Employee Parking Permit. Any merchant or employee working within the Old Town area may purchase a merchant/employee parking permit. Applicants shall submit their name, business address, proof of employment and the make, model and license number of the vehicle. Permits shall be displayed or validated as directed by the city. This permit shall be valid for parking on certain streets or parking lots as designated by the city. 4. Contractor Parking Permit. Any contractor conducting business within the city may purchase a contractor parking permit. Contractors must possess an active city contractor business license to qualify for purchase. Permits shall be valid within timeframes designated by the city. C. Parking Permit Exemptions. 6 1. A motor vehicle that has been assigned a valid parking permit as provided for herein shall be permitted to stand or be parked in a permit parking area for which the permit has been issued without being limited by time restrictions established pursuant to this article or any resolution hereunder; provided, however, that such vehicle remains subject to the 72-hour parking limitation and any other applicable restrictions imposed by this Code or the Vehicle Code. Any vehicle that has not been issued a valid parking permit shall be subject to the permit parking and other posted regulations and consequent penalties in effect for such area. 2. A parking permit or any other permit as designated by city council shall not guarantee or reserve to the holder thereof any parking space within the residential permit parking area for which the permit was issued. 3. Residential permit parking restrictions shall not apply to police vehicles, authorized emergency vehicles, or city-owned vehicles when used for official business. D. Designation Criteria For Residential Parking Permit Areas. 1. Designation of residential permit parking areas will be limited to areas with a recommended minimum street-frontage of approximately 2,000 feet that experience impacts from external pa rking demand which include factors such as commercial areas, recreational areas, schools and neighboring cities. The following shall be the process by which the City Council can consider any such area for designation as a residential permit parking area: a. Initiation by Residents: The City Council shall consider for designation as a residential permit parking area any such proposed area for which a petition has been submitted that meets and satisfies the following requirements and any administrative guidelines adopted by the City Council: i. A petition signed by a majority (51% or greater) of dwelling units within the proposed area is required. ii. Only one signature per dwelling unit will be considered for a petition. iii. For petitions involving rental complexes, the residents, property managers, and property owners may participate in the petition survey. iv. If the units in a multifamily property are individually owned, each owner would be included in the petitioning 7 process. If a unit is owned by more than one owner, only one signature for that unit is allowed. v. Upon receipt of a valid resident's petition for a residential permit parking area as described above, the City Manager or designee shall do the following: 1. Provide a notice of intent to establish residential permit parking restrictions shall be sent to all dwelling units within the proposed residential permit parking area; 2. Conduct or cause to be conducted a parking occupancy survey to determine the utilization of on-street parking, by which a 70% parking occupancy threshold of all available on-street parking and visible off-street parking is required for further consideration; 3. Refer the matter to the Planning Commission for review; and 4. Present to the City Council for final action, a resolution that would establish a residential permit parking area in accordance with requirements of this article, including all regulations and time restrictions determined by the City Council to be reasonable and necessary for such area. 5. Once City Council has taken final action on such a resolution to establish a residential permit parking area, no further changes or requests for changes in resident permit parking restrictions for this area will be considered for a minimum period of one year. 6. The City Manager or designee may restrict all or certain portions of City-owned property other than streets, alleys or highways as residential permit parking only; when authorized signs have been posted giving notice of such residential permit parking restrictions. It is unlawful and an infraction for any person to park or leave standing a vehicle within such area during the times and days when such parking is prohibited, 8 other than a vehicle that has been issued a valid residential parking permit or exempted pursuant to Section 8.15.110 C of this article. b. The City Council may establish, by resolution, modify a designated residential permit parking area in any manner consistent with this article and Vehicle Code Section 22507. 2. Initiation by City Council: Nothing in this section shall be construed to limit the authority of the City Council to establish a permit parking district in the absence of a resident’s petition in accordance with Vehicle Code Section 22507. E. Designation Criteria For Merchant/Employee Parking Permit Areas. 1. Merchant permits are issued on an annual basis from July 1st through June 30th of each year. 2. Only businesses with an active business license may purchase merchant permits. 3. Only employees with proof of current employment at a business with an active business license may purchase employee permits. 4. Merchant/Employee permits are non-transferable. F. Designation Criteria for Contractor Permits. 1. Contractor permits are for contractors doing business in the City and are valid for 12 months from the date of purchase. 2. Contractors must have an active Contractor Business License (SBMC 5.10.115) to qualify for purchase of these permits and they are only valid from 7:00 am to 5:00 pm, Monday through Friday. 3. No extensions or fee reductions will be implemented related to contractor permits. G. Issuance and Duration of Residential Permits. 1. Residential parking permits shall be issued by the Police Department in accordance with the requirements set forth in this article and shall be valid only in the residential permit parking area for which it is issued. 2. Residential parking permits shall be issued with a term not to exceed one year, unless earlier revoked or terminated, provided however that a permit 9 shall automatically terminate when the permit holder ceases to reside in the designated residential permit parking zone. 3. No residential parking permit issued pursuant to this article shall be transferable from the permit holder to any other person, nor from one vehicle to another. H. Residential Permit Policies. 1. A residential parking permit may be issued only to an eligible driver who can demonstrate that they currently reside at an eligible dwelling unit within the residential permit parking area for which the permit is to be issued. 2. To be issued a residential parking permit, each eligible driver shall provide the following information: a. The applicant’s full, true name and home address, and proof of residence; b. The applicant’s driver’s license’ c. A valid and current vehicle registration and license plate number of the vehicle for which a permit is being requested; d. The applicable fee; and e. Such other information as required by the Police Department. 3. A temporary residential parking permit shall be issued to an eligible driver for a rented or borrowed registered vehicle where the eligible driver, residing in a residential permit parking zone, demonstrates their own vehicle is unavailable for that driver's use for a temporary period. Such permits will expire upon the return to use of the originally permitted vehicle or its replacement. 4. The City Council may, by resolution, limit the number of permits issued to any resident, dwelling unit, or residential permit parking area if such limitation would further the goals of the residential permit parking program. 5. Residential parking permits will not be issued to non -motorized vehicles (i.e., trailers) or to commercial vehicles that are registered at business addresses. For the purposes of this article, a “commercial vehicle” shall have the same meaning as that term is defined in Section 260 of the California Vehicle Code. I. Guest Parking Permits. 10 1. The City Council may, by resolution, authorize the issuance of temporary guest parking permits in any residential permit parking area. When authorized, a resident within a residential permit parking area may apply for temporary parking permits for use by their guests in the residential permit parking area where the resident resides. 2. Guest permits may be issued under the following conditions: a. The resident applicant for a guest parking permit has not reached the limits, if any, set by the City Council. b. Such other conditions and restrictions that the City Council by resolution imposes or that the City Manager, or designee, deems appropriate. 3. Use of guest parking permits shall comply with residential permit parking regulations established pursuant to this article to be valid within the residential permit parking area for which it was assigned. 4. Intentional or repeated misuse of guest parking permits by a resident or their guests may be cause for revocation of the resident’s guest parking permit privileges. 5. A guest parking permit shall be valid for a prescribed period of time, commencing upon the date authorized, and shall exempt the applicable vehicle from parking time restrictions established pursuant to this article. J. Establishment of Residential Parking Permit Area. Upon adoption by the City Council of a resolution designating a residential permit parking area, street parking in the area shall be limited for a period as determined by the City Manager or designee, with input from the area residents and as may be specifically posted; provided, however, that parking shall be allowed by vehicles for which a residential or visitor's parking permit has been obtained in accordance with requirements of the ordinance unless otherwise designated. K. Posting of Residential Permit Parking Area. Upon adoption by the City Council of a resolution designating a residential permit parking area and after at least 51% of the households have purchased permits, the City Manager or designee, shall cause appropriate signs to be erected in the area, indicating prominently thereon the area prohibition or time limitation, period of its application, and conditions under which permit parking shall be exempt therefrom. 11 L. Parking permit fees shall be set by City Council resolution. M. Penalties, Liability, and Enforcement. The following acts shall constitute fraudulent use of a permit, punishable by a fine to be prescribed by City Council resolution and/or revocation of any permit currently held. Violations of this article shall include, but are not limited to, the following: 1. For any person to falsely represent himself or herself as eligible for a residential parking permit or to furnish false information in an application therefor; 2. For any person holding a valid parking permit issued pursuant hereto to sell, give, or exchange said permit to any other person; or 3. Knowingly committing any act that is prohibited by the terms of this article or any ordinance or resolution enacted by authority granted by this article. N. Revocation of Residential Permit Parking Area. 1. A residential permit parking area may be revoked by resolution of the City Council after following the same procedures for establishing a residential permit parking area as set forth in section D. 2. If 60% of the households in a residential parking area fail to purchase permits after being duly noticed, the City Manager or designee may revoke the residential permit parking area upon notice to the residents without further action of the City Council.” Section 6. Existing Enforcement. The adoption of this Ordinance shall not be construed to interfere with or affect enforcement of violations of the Seal Beach Municipal Code occurring prior to the adoption of this ordinance. Section 7. 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 f act that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional. Section 8. 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. 12 Section 9. 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 8th day of April 2026. Lisa Landau, Mayor ATTEST: Gloria D. Harper, City Clerk APPROVED AS TO FORM: __________________________________ Nicholas Ghirelli, City Attorney 1 § 8.15.010. No Parking Areas. General. It shall be unlawful for the driver of a vehicle to stop, park, or leave standing such vehicle, whether attended or unattended, in any of the following locations, except when necessary to avoid conflict with other traffic or in compliance with the direction of a police officer, traffic officer, or traffic sign or signal: 1. In an intersection; 2. In a crosswalk; 3. Within twenty (20) feet of any marked or unmarked crosswalk (known as the “daylighting” rule), including curb extensions (bulb-outs), which are sidewalk extensions designed to improve crosswalk visibility and eliminate parking within the daylighting setback; 3.4.Within a divisional island, unless authorized by signage or markings; 4.5.In such no parking or restricted parking areas as designated by the city; 5.6.In such no parking or restricted parking areas as may be defined, designated or established by city council resolution; 6.7.In violation of any provision of this code or applicable state law; 7.8.On a sidewalk; 8.9.On any portion of the area extending from a roadway edge of the curb (or from the highest point of a rolled curb) to the sidewalk; 9.10.In any area where stopping, standing or parking of vehicles is prohibited as indicated by signs or by red paint upon the curb surface; 10.11.In any area where the stopping, standing or parking of the vehicle would block the entrance to a garage or driveway. This provision shall not apply if the owner or occupant thereof has granted permission; and 11.12.In the Surfside Colony in any area between the white lines where stopping, standing or parking of the vehicle would constitute a hazard. § 8.15.070. Curb Markings. The traffic engineer or designee shall utilize the following curb markings to indicate parking regulations: A. Red: no stopping, standing or parking at any time except as permitted by the Vehicle Code or this Code, and except that a bus may stop in a red zone that is signed or marked as a bus zone. B. Yellow: no stopping, standing or parking during hours designated by signage for any purpose other than loading or unloading of passengers or materials. 2 The period of active passenger loading and unloading shall not exceed 3 minutes, and the period of materials loading and unloading shall not exceed 20 minutes. C. White: no stopping, standing during posted hours for any purpose other than loading or unloading of passengers, or depositing mail in an adjacent mailbox, for a period of time not exceeding 3 minutes. When the zone is in front of a theater, the restrictions shall apply only when the theater is open. When the zone is established at a taxicab stand, taxicabs, rideshare vehicles and automobiles for hire may remain in the zone for 20 minutes. D. Green: no stopping, standing or parking between hours and on days designated by city councilCity Council resolution for a period longer than the time indicated on the curb unless otherwise indicated by signs or curb markings. E. Blue: no stopping, standing or parking by any vehicle except vehicles operated by disabled persons that display either a special license plate or a distinguishing placard issued pursuant to state law. E.F.A licensed driver shall be present in or immediately adjacent to any vehicle stopped for the purpose of active loading or unloading passengers or materials. § 8.15.085. Parking of Oversize Vehicles Oversize Vehicle: a vehicle or combination of vehicles that exceeds 20 feet in length or 90 inches in width or 90 inches in height exclusive of projecting lights or devices as allowed by Vehicle Code Sections 35109 and 35110. "Oversize vehicle" does not include a sedan or limousine manufactured expressly for carrying 10 or fewer passengers. § 8.15.105. Paid ParkingMeters and Zones. A.Parking meterPaid parking zones are hereby established at the off-street municipal parking lots and along Main Street, Ocean Avenue, Central Avenue, and Electric Avenue as delineated on the "City of Seal Beach Parking Meter Zone Map" dated September 23, 2002. Such map is incorporated herein by reference. The city managerCity Manager or the designee thereof shall cause paid parking metersdevices to be installed and maintained in all paid parkingmeter zones. Paid parking devices include any device used to accept payment for parking, including parking meters, pay stations, web applications, mobile devices, associated signage, and other methods approved by the Police Department. B. The payment to be deposited in paid parking meters or multispace metersdevices, or by other approved methods of payment, the parking time 3 allowed following deposit of payment, the hours during which such deposits are required, and the days of the week and the weeks of the year during which such deposits are required for paid parking in all zones shall be prescribed by city council resolution. C.Parking metersPaid parking devices in thepaid parking meterzones shall be operated according to the posted signs. The paid parking meterdevice fees for paid parkingmeter zones shall be prescribed by city council resolution. D.The payment to be deposited in parking meters or multispace meters, or by other approved methods of payment, the parking time allowed following deposit of payment, the hours during which such deposits are required, and the days of the week and the weeks of the year during which such deposits are required for parking meters in all zones shall be prescribed by city council resolution. E.Parking meters in the parking meter zones shall be operated according to the posted signs. The parking meter fees for parking meter zones shall be prescribed by city council resolution. D. No person shall do any of the following: 1. Fail to deposit the paid parking meterdevice fee immediately after parking a vehicle in a paid parkingmeter zone and for the entire time that person has a vehicle parked in the paid parkingmeter zone during the paid parkingmeter hours of operation. 2. Deposit in a paid parking meterdevice a defaced coinor, slug, or other counterfeit currency. 3. Deface, injure, or tamper with a paid parking meterdevice. 4. Attach a bicycle, newsrack, fabric, handbill, flier, sticker, note, or other article to a paid parking meterdevice. 5. Allow a vehicle owned or operated by such person to remain parked at a paid parking space beyond the expired time. 6. Park a vehicle across a line or marking designating a paid parking meterspace. 7. Park a vehicle that does not conform to the maximum vehicle length limit applicable to the lot. 8. Allow a vehicle parked by such person to remain in a paid parkingmeter space after receipt of a citation for failure to pay the paid parkingmeter fee. A violation of this provision shall occur after passage, from the issuance of the citation, of the parking time limit of the lot. 4 9. Purchase time for paid parking using any method of payment for the purpose of increasing or extending the parking time of any vehicle beyond the legal parking time which has been established for the parking space or zone adjacent to which said paid parking meterdevice is placed. E. The parking of a vehicle at a paid parking space beyond the expired payment time shall constitute prima facie evidence that the vehicle has been parked in such space longer than permitted by this section. F. Mechanical failure of a paid parking meterdevice shall be a defense to a citation for failure to pay the paid parkingmeter fee, provided that the person cited is not responsible for such failure.” § 8.15.110. Parking Permits. A. The City Manager or designee shall be authorized and directed to issue, upon written applications, parking permits. Each such permit shall be designated by city council resolution to reflect the particular parking permit parking district as well as the license plate number of the motor vehicle for which it is issued. Consistent with this chapter, the city managerCity Manager or designee is authorized to issue such written rules and regulations as he or she deems necessary or appropriate to govern the process and terms for the issuance of parking permits. Rules and regulations shall be available for public review at City Hall and at the Police Department during normal business hours. This section is subject to the following restrictions by neighborhood: 1. Old Town a. 1.On Main Street, Ocean Avenue from Eighth Street to Tenth Street, and Central Avenue from Eighth Street to Tenth Street, residential parking permits may allow 2-hour parking. b. 2.In the municipal parking lots on Main Street, residential parking permits may allow parking between the hours of 12:00 a.m. and 6:00 a.m. c. 3.In the Eighth Street city employee parking lot south of Central Avenue, residential parking permits may allow parking between the hours of 12:00 a.m. and 6:00 a.m. d. 4.In the library lot, parking permits may allow residential parking between the hours of 12:00 a.m. and 6:00 a.m. B. Parking permits may be issued in the following categories: 5 1. Residential Parking Permit. Any city resident living within an approved residential parking permit area may purchase a residential parking permit. Applicants shall submit their name, address, proof of residence and the make, model and license number of each vehicle. Permits shall be displayed orvalidated as directed by the city. 2. Guest Parking Permit. Any city resident living within an approved residential parking permit area may purchase guest parking permits. Applicants shall submit their name, address and proof of residence. Permits shall bedisplayed or validated as designated by the city. Permits shall be valid within timeframes designated by the city. 3. Merchant/Employee Parking Permit. Any merchant or employee working within the Old Town area may purchase a merchant/employee parking permit. Applicants shall submit their name, business address, proof of employment and the make, model and license number of the vehicle. Permits shall be displayed or validated as directed by the city. This permit shall be valid for parking on certain streets or parking lots as designated by the city. 4. C.Parking permits shall be valid within timeframes designated by the city or until a change of ownership of the vehicle for which it is issued, whichever comes first.Contractor Parking Permit. Any contractor conducting business within the city may purchase a contractor parking permit. Contractors must possess an active city contractor business license to qualify for purchase. Permits shall be valid within timeframes designated by the city. A. Parking Permit Exemptions. 1. A motor vehicle that has been assigned a valid parking permit as provided for herein shall be permitted to stand or be parked in a permit parking area for which the permit has been issued without being limited by time restrictions established pursuant to this article or any resolution hereunder; provided, however, that such vehicle remains subject to the 72-hour parking limitation and any other applicable restrictions imposed by this Code or the Vehicle Code. Any vehicle that has not been issued a valid parking permit shall be subject to the permit parking and other posted regulations and consequent penalties in effect for such area. 2. A parking permit or any other permit as designated by city council shall not guarantee or reserve to the holder thereof any parking space within the residential permit parking area for which the permit was issued. 3. Residential permit parking restrictions shall not apply to police vehicles, authorized emergency vehicles, or city-owned vehicles when used for official business. 6 A. Designation Criteria For Residential Parking Permit Areas. 1. Designation of residential permit parking areas will be limited to areas with a recommended minimum street-frontage of approximately 2,000 feet that experience impacts from external parking demand which include factors such as commercial areas, recreational areas, schools and neighboring cities. The following shall be the process by which the City Council can consider any such area for designation as a residential permit parking area: a. Initiation by Residents: The City Council shall consider for designation as a residential permit parking area any such proposed area for which a petition has been submitted that meets and satisfies the following requirements and any administrative guidelines adopted by the City Council: i.A parking permit shall be destroyed by the permittee upon a change in ownership of the vehicle for which it issued or a change in addressA petition signed by a majority (51% or greater) of dwelling units within the proposed area is required. ii. Only one signature per dwelling unit will be considered for a petition. iii. For petitions involving rental complexes, the residents, property managers, and property owners may participate in the petition survey. iv. If the units in a multifamily property are individually owned, each owner would be included in the petitioning process. If a unit is owned by more than one owner, only one signature for that unit is allowed. v. Upon receipt of a valid resident's petition for a residential permit parking area as described above, the City Manager or designee shall do the following: 1. Provide a notice of intent to establish residential permit parking restrictions shall be sent to all dwelling units within the proposed residential permit parking area; 2. Conduct or cause to be conducted a parking occupancy survey to determine the utilization of on-street parking, by which a 70% parking 7 occupancy threshold of all available on-street parking and visible off-street parking is required for further consideration; 1. Refer the matter to the Planning Commission for review; and 2. Present to the City Council for final action, a resolution that would establish a residential permit parking area in accordance with requirements of this article, including all regulations and time restrictions determined by the City Council to be reasonable and necessary for such area. 3. Once City Council has taken final action on such a resolution to establish a residential permit parking area, no further changes or requests for changes in resident permit parking restrictions for this area will be considered for a minimum period of one year. 4. The City Manager or designee may restrict all or certain portions of City-owned property other than streets, alleys or highways as residential permit parking only; when authorized signs have been posted giving notice of such residential permit parking restrictions. It is unlawful and an infraction for any person to park or leave standing a vehicle within such area during the times and days when such parking is prohibited, other than a vehicle that has been issued a valid residential parking permit or exempted pursuant to Section 8.15.110 C of this article. a. The City Council may establish, by resolution, modify a designated residential permit parking area in any manner consistent with this article and Vehicle Code Section 22507. 1. Initiation by City Council: Nothing in this section shall be construed to limit the authority of the City Council to establish a permit parking district in the absence of a resident’s petition in accordance with Vehicle Code Section 22507. A. Designation Criteria For Merchant/Employee Parking Permit Areas. 8 1. Merchant permits are issued on an annual basis from July 1st through June 30th of each year. 2. Only businesses with an active business license may purchase merchant permits. 3. Only employees with proof of current employment at a business with an active business license may purchase employee permits. 4. Merchant/Employee permits are non-transferable. A. Designation Criteria for Contractor Permits. 1. Contractor permits are for contractors doing business in the City and are valid for 12 months from the date of purchase. 2. Contractors must have an active Contractor Business License (SBMC 5.10.115) to qualify for purchase of these permits and they are only valid from 7:00 am to 5:00 pm, Monday through Friday. 3. No extensions or fee reductions will be implemented related to contractor permits. B. Issuance and Duration of Residential Permits. 1. Residential parking permits shall be issued by the Police Department in accordance with the requirements set forth in this article and shall be valid only in the residential permit parking area for which it is issued. 2. Residential parking permits shall be issued with a term not to exceed one year, unless earlier revoked or terminated, provided however that a permit shall automatically terminate when the permit holder ceases to reside in the designated residential permit parking zone. 3. No residential parking permit issued pursuant to this article shall be transferable from the permit holder to any other person, nor from one vehicle to another. C. Residential Permit Policies. 1. A residential parking permit may be issued only to an eligible driver who can demonstrate that they currently reside at an eligible dwelling unit within the residential permit parking area for which the permit is to be issued. 2. To be issued a residential parking permit, each eligible driver shall provide the following information: 9 a. The applicant’s full, true name and home address, and proof of residence; b. The applicant’s driver’s license’ c. A valid and current vehicle registration and license plate number of the vehicle for which a permit is being requested; d. The applicable fee; and a.e. by the permitteePolice Department.The permittee shall promptly report such destruction to the city. 1. A temporary residential parking permit shall be issued to an eligible driver for a rented or borrowed registered vehicle where the eligible driver, residing in a residential permit parking zone, demonstrates their own vehicle is unavailable for that driver's use for a temporary period. Such permits will expire upon the return to use of the originally permitted vehicle or its replacement. 2. The City Council may, by resolution, limit the number of permits issued to any resident, dwelling unit, or residential permit parking area if such limitation would further the goals of the residential permit parking program. 3. Residential parking permits will not be issued to non-motorized vehicles (i.e., trailers) or to commercial vehicles that are registered at business addresses. For the purposes of this article, a “commercial vehicle” shall have the same meaning as that term is defined in Section 260 of the California Vehicle Code. A. Guest Parking Permits. 1. The City Council may, by resolution, authorize the issuance of temporary guest parking permits in any residential permit parking area. When authorized, a resident within a residential permit parking area may apply for temporary parking permits for use by their guests in the residential permit parking area where the resident resides. 2. Guest permits may be issued under the following conditions: a. The resident applicant for a guest parking permit has not reached the limits, if any, set by the City Council. 10 a. Such other conditions and restrictions that the City Council by resolution imposes or that the City Manager, or designee, deems appropriate. 1. Use of guest parking permits shall comply with residential permit parking regulations established pursuant to this article to be valid within the residential permit parking area for which it was assigned. 2. Intentional or repeated misuse of guest parking permits by a resident or their guests may be cause for revocation of the resident’s guest parking permit privileges. 3. A guest parking permit shall be valid for a prescribed period of time, commencing upon the date authorized, and shall exempt the applicable vehicle from parking time restrictions established pursuant to this article. A. Establishment of Residential Parking Permit Area. Upon adoption by the City Council of a resolution designating a residential permit parking area, street parking in the area shall be limited for a period as determined by the City Manager or designee, with input from the area residents and as may be specifically posted; provided, however, that parking shall be allowed by vehicles for which a residential or visitor's parking permit has been obtained in accordance with requirements of the ordinance unless otherwise designated. B. Posting of Residential Permit Parking Area. Upon adoption by the City Council of a resolution designating a residential permit parking area and after at least 51% of the households have purchased permits, the City Manager or designee, shall cause appropriate signs to be erected in the area, indicating prominently thereon the area prohibition or time limitation, period of its application, and conditions under which permit parking shall be exempt therefrom. A.C.Parking permit fees shall be asset by city councilCity Council resolution. D. Penalties, Liability, and Enforcement. F.The following acts shall constitute fraudulent use of a permit, punishable by a fine to be prescribed by city councilCity Council resolution and/or revocation of any permit currently held. Violations of this article shall include, but are not limited to, the following: 11 1. For any person to falsely represent himself or herself as eligible for a residential parking permit or to furnish false information in an application therefor; 2.For any person holding a valid residential parking permit issued pursuant hereto to permit use or display of or to use or display such permit on a motor vehicle other than that for which the permit was issued; 3.For any person to copy, reproduce or otherwise bring into existence a facsimile or counterfeit parking permit or permits; 4.For any person to knowingly use or display a facsimile or counterfeit parking permit in order to evade time limitations on parking applicable in a residential parking permit area; 2. For any person holding a valid parking permit issued pursuant hereto to sell, give, or exchange said permit to any other person. or 3. Knowingly committing any act that is prohibited by the terms of this article or any ordinance or resolution enacted by authority granted by this article. A. Revocation of Residential Permit Parking Area. 1. A residential permit parking area may be revoked by resolution of the City Council after following the same procedures for establishing a residential permit parking area as set forth in section D. 2. If 60% of the households in a residential parking area fail to purchase permits after being duly noticed, the City Manager or designee may revoke the residential permit parking area upon notice to the residents without further action of the City Council. Seal Beach Municipal Code Updates April 2026 Overview •Modernized paid parking provisions •Establish Residential Parking Permit (RPP) program framework •Clarify curb-use rules (including “daylighting”) Goal: Improve clarity, safety, and administrative efficiency while preserving Council policy control. 2 Key Updates •Paid Parking Modernization: Reflect current and emerging payment methods (beyond traditional meters). •Residential Parking Permit Framework: Provides a ready structure for future permit districts (activated by Council). •Curb-Use Rules & Daylighting: Clearer stopping/ standing/parking rules; improve intersection visibility and safety. 3 Fiscal & Policy Impact •Fiscal Impact: No immediate cost; future fees or program costs require Council approval. •Council Control: Rates, hours, and any permit districts remain under Council resolution. •Legal Review: Ordinance vetted by City Attorney for form and legality. 4 Next Steps:Next Steps & Community Benefits 5 •Introduce ordinance •Schedule adoption at next Council meeting •Effective 30 days post-adoption •Safer intersections •Improved parking turnover in commercial areas •Predictable access for residents and visitors Community Benefits Thank You! sb@dixonresourcesunlimited.com sb@dixonresourcesunlimited.com